Core Points - Alico, Inc. supports the establishment of the Corkscrew Grove Stewardship District, which aims to enhance community infrastructure in eastern Collier County [1][3][6] - The legislation received unanimous support from various Florida legislative bodies and local government [2] - The district will facilitate Alico's infrastructure financing, natural area management, and community administration [3][5] Company Overview - Alico, Inc. is a Florida-based agribusiness and land management company with over 125 years of experience, managing approximately 51,300 acres across 8 counties [9] - The company focuses on strategic land development and diversified agricultural operations to create long-term shareholder value [9] Project Details - Alico announced the creation of Corkscrew Grove Villages, covering approximately 4,600 acres, which will include two 1,500-acre villages and over 6,000 acres of conservation area [4] - The Corkscrew Grove Stewardship District will be overseen by a five-member Board of Supervisors and will collaborate with local agencies for infrastructure development [5][6] - Alico is currently seeking approval for the East Village, with a decision expected in 2026 and potential construction starting in 2028 or 2029 [7]

Strategic Transformation - Alico announced the wind-down of its Alico Citrus division after the 2024/2025 harvest, transforming into a diversified land company[19, 21] - The company is shifting its focus to non-citrus agricultural revenue opportunities and strategic land development[21] - This transformation addresses ongoing citrus industry challenges, aiming to reduce operational volatility and maximize shareholder value[22] - The citrus industry has seen a 73% decline in production over the last decade, making it no longer economically viable for Alico in Florida[23] Land Portfolio and Development - Alico owns approximately 53,371 acres of land in Florida[6, 9] - The estimated land value ranges from $650 million to $750 million[28, 29] - 76% of the land (40,771 acres) will remain in agriculture, while 25% is identified for development potential[28, 30, 33] - 10% of the land (5,500 acres) is targeted for near-term development within 5 years, with a potential value of $140 million to $170 million[28, 31] - 14% of the land (7,100 acres) has long-term development potential beyond 5 years, valued at $175 million to $200 million[30, 32] Financial Position and Shareholder Value - Alico expects positive cash flow for the remainder of FY2025 and has sufficient cash reserves for over 2 years of operations[28] - The company has a Met Life credit line through 2034, with $95 million drawn as of September 2024[34] - Alico has returned $189 million in total capital since FY2015, including $87 million since FY2021, and has maintained consistent quarterly dividends since 1974[36, 41]

Core Viewpoint - Alico, Inc. has announced a significant shift in its business strategy after focusing primarily on citrus in Florida for the past century [1] Group 1: Company Overview - Alico, Inc. (NASDAQ: ALCO) has historically concentrated on the citrus industry in Florida [1] - The management has officially declared a drastic change in business direction since January [1] Group 2: Strategic Shift - The company is moving away from its long-standing focus on citrus, indicating a potential diversification of its business model [1]

Alico (ALCO) Conference Summary Company Overview - Alico Incorporated, ticker ALCO, is a public company trading on Nasdaq with a market cap of approximately $240 million [4][3]. - The company has a long history of over 125 years in agribusiness and land management, primarily in Florida [5][4]. - Alico owns about 51,000 acres of land across 31 locations in eight counties in Florida [7][6]. Strategic Transition - Alico is transitioning from a focus on citrus operations to a diversified land company, with about 25% of its land holdings being repurposed for commercial and residential development [5][6]. - The decision to wind down citrus operations was driven by financial and tactical reasons, including losses due to environmental impacts and diseases affecting the citrus industry [15][14]. - The company aims to balance short-term cash flow from agricultural operations with long-term capital returns through real estate development [6][16]. Financial Performance and Projections - Alico projects an EBITDA of approximately $20 million for the fiscal year ending September 2025, with an expected cash balance of $25 million and a net debt reduction to around $60 million [16][17]. - The present value of Alico's land is estimated between $650 million and $750 million, indicating the company is trading at a significant discount to its potential market value [19][20]. - The company has identified four projects that could generate between $335 million and $380 million in present value over the next five years [20][21]. Development Projects - Key projects include the Corkscrew Grove Village in Collier County, which will feature mixed-use villages and a 1,500-acre environmentally friendly corridor for the Florida panther [26][27]. - Other projects include Bonnet Lake, Saddlebag in Polk County, and Plant World, each with varying timelines and development plans [30][33]. Shareholder Returns and Capital Management - Alico has a history of returning capital to shareholders, having returned over $190 million through dividends and debt prepayments over the past ten years [35][36]. - The company has a new $50 million buyback program approved by the board, indicating a commitment to returning capital as cash flow allows [36][40]. - Alico maintains a strong liquidity position with $25 million in cash and $95 million in untapped credit lines [39][42]. Market Perception and Future Outlook - The company acknowledges a disconnect between its market capitalization and the fair value of its assets, attributing it to market skepticism regarding its transition from citrus to real estate [57][58]. - Alico aims to close this value gap by consistently delivering on its strategic roadmap and maintaining transparency with investors [62][63]. - The management is focused on executing its strategy and returning capital to shareholders while managing the remaining agricultural operations effectively [38][59]. Additional Insights - The company has been proactive in managing its land and has a detailed master plan for each acre, ensuring the highest and best use of its assets [22][23]. - Alico's management team has significant experience in land entitlement and real estate development, which is crucial for the company's strategic shift [11][12].

Core Points - Alico, Inc. will present at the Sidoti Small Cap Virtual Conference on June 11 and 12, 2025, with CEO John Kiernan hosting one-on-one meetings with investors [1][2] - The presentation is scheduled to start at 12:15 PM ET on June 11, 2025, and will be accessible live [2] - Alico is a Florida-based agribusiness and land management company with over 125 years of experience, operating approximately 51,300 acres across 8 Florida counties [3] Company Overview - Alico focuses on strategic land development opportunities and diversified agricultural operations, aiming to create long-term shareholder value [3] - The company emphasizes responsible land stewardship and conservation as part of its operational strategy [3]

Financial Data and Key Metrics Changes - Revenue for the second fiscal quarter decreased by 1% to $18 million compared to $18.1 million for the prior year period [15] - For the six months ended March 31, 2025, revenue decreased by 9% to $34.9 million compared to $32.1 million for the prior year period [15] - The company reported a net loss attributable to common shareholders of $111.4 million for the three months ended March 31, 2025, compared to a loss of $15.8 million for the same period in the prior year [18] - EBITDA for the three months ended March 31, 2025, was a loss of $14.7 million compared to a loss of $16.5 million for the same period in the prior year [18] - Adjusted EBITDA for the three months ended March 31, 2025, was a gain of $12.7 million compared to a loss of $16.5 million for the same period in the prior year [18] Business Line Data and Key Metrics Changes - Alico harvested approximately 4.7 million and 8.7 million pound solids of fruit for the three and six months ended March 31, 2025, respectively, compared to 5.8 million and 10.4 million pound solids in the same periods of the prior fiscal year [15] - Land management and other operations revenue increased by 10,774% for the three and six months ended March 31, 2025, primarily due to increased rock and sand royalty income and sod sales [16] Market Data and Key Metrics Changes - The blended price per pound solids for the three and six months ended March 31, 2025, increased by $0.70 and $0.85, respectively, due to more favorable pricing in a contract with Tropicana [16] Company Strategy and Development Direction - The company is transitioning to a diversified land company, having completed the majority of its capital investment in citrus operations [5] - Alico has completed the sale of 2,100 acres this year and raised its outlook for land sales to potentially exceed $50 million, a 150% increase from prior guidance [6] - The company is engaged with agricultural operators to diversify its remaining agricultural activities, including sod production and seasonal crops [7] - Alico is advancing entitlement work for development properties, with a significant project planned for Corkscrew Grove Villages, which includes two mixed-use master plan communities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic transformation, projecting a cash balance of approximately $25 million and net debt of about $60 million by the end of fiscal year 2025 [21] - The company expects to generate approximately $20 million in adjusted EBITDA for fiscal year 2025, supported by land sales and cash generated from citrus harvests [22] - The present value of current land holdings is estimated to be worth between $650 million and $750 million, with 75% valued for agricultural use [22] Other Important Information - The company amended its credit agreement to adjust financial covenants and reduce insurance coverage requirements, resulting in cost savings [13] - A $50 million share repurchase program was announced as part of the capital allocation strategy [13] Q&A Session Summary Question: Can you provide additional details on the $15.8 million gain in the quarter? - The gain was from the sale of 2,100 acres of land [28] Question: Are there ongoing discussions for additional land sales to achieve the $50 million target? - The company is in discussions for potential land sales, but timing is uncertain due to the diligence process [30] Question: What milestones can be expected for the Corkscrew project before potential entitlement approvals? - The entitlement approvals themselves will serve as milestones, with various meetings and revisions expected [31]

Financial Data and Key Metrics Changes - Revenue for the second fiscal quarter decreased by 1% to $18 million compared to $18.1 million for the prior year period [13] - For the six months ended March 31, 2025, revenue decreased by 9% to $34.9 million compared to $32.1 million for the prior year period [13] - The company reported a net loss attributable to common shareholders of $111.4 million for the three months ended March 31, 2025, compared to a loss of $15.8 million for the same period in the prior year [17] - EBITDA for the three months ended March 31, 2025, was a loss of $14.7 million compared to a loss of $16.5 million for the same period in the prior year [17] - Adjusted EBITDA for the three months ended March 31, 2025, was a gain of $12.7 million compared to a loss of $16.5 million for the same period in the prior year [17] Business Line Data and Key Metrics Changes - Alico harvested approximately 4.7 million and 8.7 million pound solids of fruit for the three and six months ended March 31, 2025, respectively, compared to 5.8 million and 10.4 million pound solids in the same periods of the prior fiscal year [14] - Land management and other operations revenue increased by 10,774% for the three and six months ended March 31, 2025, primarily due to increased rock and sand royalty income and sod sales [15] Market Data and Key Metrics Changes - The company completed the sale of 2,100 acres of land in the second quarter of 2025, contributing to other income of $15.3 million for that quarter [16] - The company raised its outlook for land sales to potentially exceed $50 million for the fiscal year, a 150% increase from prior guidance [6] Company Strategy and Development Direction - The company is transitioning to a diversified land company, having completed its major capital investment in citrus operations [5] - Alico is actively engaged with agricultural operators to diversify its remaining agricultural activities, including sod production and seasonal crop leases [7] - The company is pursuing development opportunities for its properties, including the Corkscrew Grove Villages project, which aims to create mixed-use master plan communities [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic transformation, projecting a cash balance of approximately $25 million and net debt of about $60 million by the end of the fiscal year [19] - The company expects to generate approximately $20 million in adjusted EBITDA for fiscal year 2025, supported by land sales and cash generated from citrus harvests [20] Other Important Information - The company amended its credit agreement to adjust financial covenants and reduce insurance coverage requirements, resulting in cost savings [12] - A $50 million share repurchase program was announced as part of the capital allocation strategy [12] Q&A Session Summary Question: Can you provide additional details on the $15.8 million from land sales in the quarter? - The $15.8 million was from the sale of 2,100 acres located in Henry County [25][26] Question: Are there ongoing discussions for additional land sales to achieve the $50 million target? - The company is in discussions for additional land sales, but the timing is uncertain due to the diligence process [28] Question: What milestones can be expected for the Corkscrew project before potential entitlement approvals? - The entitlement approvals themselves will serve as milestones, with individual meetings and revisions expected throughout the process [29]

Core Insights - Alico, Inc. is transitioning to become a diversified land company, concluding its capital investment in citrus operations after the fiscal year 2025 harvest [1][2] - The company has raised its land sales outlook to potentially exceed $50 million for fiscal year 2025, supported by ongoing negotiations and agreements [1][2][25] - Alico's financial guidance now includes cash balance, net debt, and adjusted EBITDA targets for fiscal year 2025, projecting a cash balance of approximately $25 million and net debt of around $60 million [1][2][26] Financial Performance - For the second quarter ended March 31, 2025, Alico reported revenue of $17.98 million, a slight decrease of 0.7% compared to $18.11 million in the same period of 2024 [3] - The net loss attributable to Alico common stockholders for the quarter was $111.4 million, a significant increase from a loss of $15.8 million in the prior year, primarily due to accelerated depreciation and impairment related to the strategic transformation [4][5] - Adjusted EBITDA for the second quarter was $12.7 million, contrasting with a loss of $16.5 million in the same quarter of 2024 [5] Citrus Operations - Alico completed its last major citrus harvest in April 2025, with plans for a final harvest on remaining operational citrus groves in fiscal year 2026 [2][24] - Citrus production saw a decline, with total processed boxes down 20.4% year-over-year for the three months ended March 31, 2025 [7] - The company experienced a significant drop in pound solids harvested due to adverse weather conditions, specifically Hurricane Milton [7] Land Management and Other Operations - Revenue from Land Management and Other Operations increased by 107.1% for the three months ended March 31, 2025, driven by higher rock and sand royalty income [10] - Operating expenses in this segment decreased by 46.5% compared to the same period in 2024, primarily due to lower property taxes following the sale of Alico Ranch [11] Strategic Initiatives - Alico is developing the Corkscrew Grove Villages project, which will encompass approximately 4,660 acres and aims to provide residential and commercial opportunities while enhancing public infrastructure [17][18] - The company has initiated a multi-year entitlement approval process for the Corkscrew Grove Villages, with the first village's approval expected in 2026 [18] - Alico's commitment to conservation is evident in its plans to place an additional 6,000 acres into permanent conservation as part of the Corkscrew Grove Villages project [21][22] Liquidity and Financial Position - As of March 31, 2025, Alico reported a robust liquidity position with $14.7 million in cash and cash equivalents and $88.5 million in available credit facilities [1][19] - The company's working capital was $36.1 million, reflecting a current ratio of 5.56 to 1.00 [19] - Total debt stood at $89.6 million, with net debt at $74.9 million, showing a decrease from the previous fiscal year [19]

Revenue and Losses - Total operating revenues for the three months ended March 31, 2025, were $17,980,000, a decrease of 0.7% compared to $18,113,000 for the same period in 2024[18] - Alico Citrus segment reported revenues of $17,253,000 for the three months ended March 31, 2025, down from $17,762,000 in the prior year, reflecting a decline of 2.9%[18] - Net loss attributable to Alico, Inc. common stockholders for the three months ended March 31, 2025, was $111,385,000, compared to a net loss of $15,804,000 for the same period in 2024[18] - For the six months ended March 31, 2025, Alico, Inc. reported a net loss of $120.684 million compared to a net income of $26.423 million for the same period in 2024[28] - The total gross loss profit for the six months ended March 31, 2025, was $157,935,000, compared to a gross loss of $32,413,000 for the same period in 2024[101] Assets and Liabilities - Total assets decreased to $243,165,000 as of March 31, 2025, down from $398,719,000 as of September 30, 2024[15] - Total liabilities decreased to $107,954,000 as of March 31, 2025, compared to $142,424,000 as of September 30, 2024[15] - The company had total assets of $243,165,000 as of March 31, 2025, down from $398,719,000 as of September 30, 2024, reflecting a decrease of 39.0%[100] Cash and Cash Equivalents - Cash and cash equivalents increased to $14,659,000 as of March 31, 2025, from $3,150,000 as of September 30, 2024[15] - Alico's cash and cash equivalents at the end of the period were $15.421 million, up from $5.966 million at the end of the same period in 2024[28] - The company had cash and cash equivalents of $14,659,000 as of March 31, 2025, compared to $3,150,000 on September 30, 2024[48] Dividends and Stock - The company declared cash dividends of $0.05 per common share for both the three and six months ended March 31, 2025[18] - The weighted-average number of common shares outstanding for the three months ended March 31, 2025, was 7,637,000, slightly up from 7,620,000 in the same period of 2024[18] - The weighted average common shares outstanding for diluted earnings per share remained stable at 7,637,000 for the three months ended March 31, 2025, compared to 7,620,000 in 2024[52] Strategic Changes - Alico plans to focus on long-term diversified land usage and real estate development strategy, winding down citrus production operations[12] - The company plans to wind down its Alico Citrus division due to financial challenges, with a workforce reduction of up to 172 employees approved by the Board[30] Impairments and Adjustments - The company reported a significant impairment of long-lived assets amounting to $24.966 million during the six months ended March 31, 2025[28] - The company recognized an impairment of long-lived assets totaling $24,966,000 for the three and six months ended March 31, 2025, due to reduced cash flow estimates[56] - The company recognized an impairment of $24,966,000 related to its young trees and long-lived assets due to the Strategic Transformation[75] Inventory and Receivables - Accounts receivable related to citrus sales as of March 31, 2025, amounted to $9,145,000, significantly higher than $444,000 recorded on September 30, 2024[43] - The company recorded inventory adjustments of $9,895,000 and $28,549,000 for the six months ended March 31, 2025 and 2024, respectively, primarily due to lower than anticipated harvests caused by Hurricane Milton[67] - As of March 31, 2025, total inventories decreased to $7,247,000 from $30,084,000 as of September 30, 2024[66] Debt and Financial Compliance - The company’s long-term debt as of March 31, 2025, was $88,536,000, with an estimated fair value of $83,713,000[49] - Long-term debt as of March 31, 2025, was $81,654,000, a slight decrease from $82,313,000 as of September 30, 2024[83] - The company was in compliance with all financial covenants as of March 31, 2025, including a minimum debt service coverage ratio of 1.10 to 1.00[91] Stock Options and Compensation - As of March 31, 2025, the company has 38,000 stock options vested and outstanding with a weighted average exercise price of $33.75 and a remaining contractual term of 1.8 years[112] - The company granted market-based restricted stock units (MRSUs) on December 23, 2024, with thresholds set at $35, $40, and $45 per share, allowing for the potential earning of up to 38,000 MRSUs[113] - Total unrecognized stock compensation costs for MRSUs as of March 31, 2025, amount to $422,000, compared to $0 as of September 30, 2024[115] Other Financial Metrics - The effective tax rate for the three months ended March 31, 2025, was a benefit of 19.4%, differing from the Federal Statutory rate of 21.0% primarily due to a change in the valuation allowance[96] - The Amended RLOC had a variable interest rate of 6.53% as of March 31, 2025, compared to 7.30% as of September 30, 2024[90] - The company has a minimum current ratio requirement of 1.50 to 1.00, which it maintained as of March 31, 2025[91] Legal and Compliance - There are no current legal proceedings that the company believes will have a material adverse effect on its financial condition[116]

Financial Performance - Alico, Inc. reported revenue of $17.98 million for the three months ended March 31, 2025, a decrease of 0.7% compared to $18.11 million in the same period of 2024[4]. - The net loss attributable to Alico common stockholders for the three months ended March 31, 2025, was $111.39 million, a significant increase of 604.8% from a loss of $15.80 million in the prior year[4]. - Adjusted EBITDA for the three months ended March 31, 2025, was $12.73 million, compared to a loss of $16.47 million in the same period of 2024[5]. - Total operating revenues for the three months ended March 31, 2025, were $17,980,000, a decrease of 0.73% compared to $18,113,000 for the same period in 2024[39]. - Alico Citrus segment reported operating revenues of $17,253,000 for the three months ended March 31, 2025, down from $17,762,000 in the prior year, reflecting a decline of 2.86%[39]. - The company incurred a gross loss of $149,697,000 for the three months ended March 31, 2025, compared to a gross loss of $18,158,000 for the same period in 2024[39]. - Net loss attributable to Alico, Inc. common stockholders for the six months ended March 31, 2025, was $120,552,000, compared to net income of $27,141,000 for the same period in 2024[39]. - Adjusted EBITDA for the six months ended March 31, 2025, was $6,057,000, a decrease from $47,343,000 for the same period in 2024[45]. Cash and Debt Management - Alico's cash balance is projected to reach approximately $25 million by the end of fiscal year 2025, with net debt expected to be around $60 million[3]. - The Company expects land sales to potentially exceed $50 million for fiscal year 2025, supported by $20 million in previously announced land sales and cash generated from the citrus harvest[3]. - Alico's liquidity position remains strong with $14.66 million in cash and cash equivalents and $88.5 million in available credit facilities[2]. - Total debt was $89.6 million and net debt was $74.9 million at March 31, 2025, compared to $92.1 million and $89.0 million, respectively, at September 30, 2024[22]. - The Company expects to realize approximately $20 million in land sales in fiscal year 2025, with potential for an additional $30 million, representing a 150% increase from prior guidance[28]. - The Company anticipates ending fiscal year 2025 with approximately $25 million in cash and net debt of approximately $60 million[29]. - Cash and cash equivalents increased to $15,421,000 as of March 31, 2025, from $5,966,000 at the end of the prior year[41]. - Total liabilities decreased to $107,954,000 as of March 31, 2025, compared to $142,424,000 as of September 30, 2024, a reduction of 24.1%[38]. - Total debt as of March 31, 2025, was $89,558,000, down from $92,117,000 as of September 30, 2024[46]. - Net debt as of March 31, 2025, was $74,899,000, compared to $88,967,000 as of September 30, 2024[46]. - Current portion of long-term debt remained stable at $1,410,000 for both March 31, 2025, and September 30, 2024[46]. - Long-term debt, net, decreased slightly to $81,654,000 as of March 31, 2025, from $82,313,000 as of September 30, 2024[46]. Operational Highlights - Citrus production for the three months ended March 31, 2025, saw a total of 923 boxes harvested, a decline of 20.4% from 1,159 boxes in the same period of 2024[7]. - The average price per pound solids for early and mid-season citrus increased by 19.6% to $3.66 compared to $3.06 in the prior year[7]. - Land Management and Other Operations revenue increased by 107.1% for the three months ended March 31, 2025, primarily due to higher rock and sand royalty income[11]. - General and administrative expenses rose by $1.1 million for the three months ended March 31, 2025, mainly due to accelerated depreciation and higher legal fees related to the Strategic Transformation[13]. - Other income for the six months ended March 31, 2025, was a gain of $14.2 million, down from $75.0 million for the same period in 2024, primarily due to fewer land sales[16]. Strategic Initiatives - Alico announced the creation of Corkscrew Grove Villages, which will include approximately 9,000 homes and 375 affordable housing units per village, enhancing public infrastructure and conservation efforts[19]. - The first village of Corkscrew Grove is expected to begin construction in 2028 or 2029, pending regulatory approvals[20]. - Alico has a long history of conservation, having sold over 17,000 acres of land to the Florida Department of Environmental Protection in 2023, contributing to the Florida Wildlife Corridor[25]. - The Company is committed to a strategic transformation focusing on diversified land usage and real estate development, winding down its citrus production operations[31]. Dividend Information - The Company paid a second quarter cash dividend of $0.05 per share on April 11, 2025, to stockholders of record as of March 28, 2025[17]. - The company declared cash dividends of $0.05 per common share for both the three and six months ended March 31, 2025, consistent with the prior year[39].