Alico(ALCO) - 2019 Q3 - Quarterly Report

Part I - FINANCIAL INFORMATION Condensed Consolidated Financial Statements The company presents unaudited condensed consolidated financial statements, showing total assets decreased to $399.5 million and nine-month net income increased to $21.2 million Condensed Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2019 (Unaudited) | September 30, 2018 | | :--- | :--- | :--- | | Total Current Assets | $44,117 | $71,061 | | Total Assets | $399,519 | $423,422 | | Total Current Liabilities | $23,353 | $21,498 | | Total Liabilities | $216,236 | $245,827 | | Total Stockholders' Equity | $183,283 | $177,595 | Condensed Consolidated Statement of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Nine Months Ended June 30, 2019 | Nine Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $57,565 | $26,517 | $120,865 | $79,650 | | Gross Profit | $26,004 | $11,914 | $45,500 | $20,329 | | Income from Operations | $23,322 | $8,959 | $34,714 | $10,415 | | Net Income | $16,216 | $9,092 | $21,173 | $12,300 | | Net Income Attributable to Alico | $16,244 | $9,100 | $21,324 | $12,332 | Condensed Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Activity | Nine Months Ended June 30, 2019 | Nine Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,686 | $16,119 | | Net cash (used in) provided by investing activities | $(14,348) | $19,163 | | Net cash used in financing activities | $(49,073) | $(12,124) | | Net (decrease) increase in cash | $(21,735) | $23,158 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial results, noting a 51.7% increase in nine-month operating revenues to $120.9 million driven by citrus recovery and cost efficiency programs - The Alico 2.0 Modernization Program targets reducing citrus total expenses per acre to $2,164 and cost per pound solid to $1.56 by 2020[141][142] - The company repurchased 752,234 shares of common stock for $25.6 million through a tender offer completed on October 3, 2018[145] - Post-quarter, the company received $5.8 million from the Florida Citrus Recovery Block Grant related to Hurricane Irma, with potential for additional reimbursements[153][129] Consolidated Results of Operations Summary (in thousands) | Metric | Nine Months Ended June 30, 2019 | Nine Months Ended June 30, 2018 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $120,865 | $79,650 | $41,215 | 51.7% | | Total Gross Profit | $45,500 | $20,329 | $25,171 | 123.8% | | Income from Operations | $34,714 | $10,415 | $24,299 | 233.3% | | Net Income Attributable to Alico | $21,324 | $12,332 | $8,992 | 72.9% | Quantitative and Qualitative Disclosures About Market Risk The company reports no material changes to its market risk disclosures since the fiscal year ended September 30, 2018 - No material changes in quantitative and qualitative market risk disclosures have occurred since the fiscal year ended September 30, 2018 annual report[192] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal control over financial reporting - Disclosure controls and procedures were deemed effective by the Principal Executive Officer and Chief Financial Officer as of the reporting period end[194] - No material changes to internal control over financial reporting occurred during the third fiscal quarter[195] Part II - OTHER INFORMATION Legal Proceedings The company is not party to any current legal proceedings expected to materially adversely affect its financial condition, operations, or cash flows - The company reports no current legal proceedings expected to materially adversely affect its financial position, results of operations, or cash flows[197] Risk Factors No material changes have occurred in the risk factors since the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018 - No material changes have occurred in the risk factors since the Annual Report on Form 10-K for the fiscal year ended September 30, 2018[198] Unregistered Sales of Equity Securities and Use of Proceeds The company reports no sales of unregistered equity securities and no share repurchases under the 2017 authorization during the period - No sales of unregistered equity securities were made during the reporting period[199] - The company did not purchase any shares under its 2017 stock repurchase authorization during the three and nine months ended June 30, 2019[201] Other Information The Board amended Bylaws to make certain officer positions discretionary and adopted revised charters for key committees on August 5, 2019 - The company amended its Bylaws on August 5, 2019, making certain officer positions discretionary[203] - Revised charters for the Compensation, Executive, and Nominating & Governance Committees were adopted by the Board on August 5, 2019[206] Exhibits This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications, amended bylaws, and committee charters - Filed exhibits include CEO and CFO certifications, amended Bylaws, and revised board committee charters[210]