Alico(US:ALCO)2024-12-02 12:16Land and Production - Alico owns approximately 53,371 acres of land in Florida, with 48,251 acres dedicated to citrus cultivation, representing 90.4% of total land holdings[17] - The total gross acres of citrus land owned and managed by the company is 48,251, with 34,060 classified as net plantable acres capable of producing fruit[35] - Alico extended a lease for approximately 637 acres, increasing citrus production acreage by about 2%[34] - The company has planted approximately 2,500,000 new trees since 2017 to increase grove density, with citrus trees typically becoming fruit-bearing four to five years after planting[37] Financial Performance - The company recognized a $19,549 inventory adjustment to reduce inventory to its net realizable value due to a significantly lower than anticipated harvest for the 2024-2025 season[22] - For the fiscal year ended September 30, 2024, sales to the processed market constituted 92.0% of Alico Citrus revenues, a decrease from 94.0% in the previous year[38] - Revenue from Tropicana represented 86.8% of consolidated revenue for the year ended September 30, 2024, up from 81.3% in 2023, primarily due to increased pound solids produced[55][56] - Revenues from Alico Citrus operations accounted for 96.6% of total operating revenues for the year ended September 30, 2024[43] - Revenues generated from grove management services increased from 3.2% in 2023 to 6.3% in 2024 of total citrus revenues[42] - The company recognized a gain of $77,025 from the sale of approximately 17,556 acres of the Alico Ranch during the year ended September 30, 2024[47] Risk Factors - Alico's citrus business is subject to various risks, including adverse weather conditions and disease, which could significantly affect financial performance[14] - The company is evaluating the impact of Hurricane Ian on production levels, which have not returned to pre-Ian levels[22] - Hurricane Milton caused minimal tree damage but resulted in measurable fruit drop, particularly in Polk and Hardee County[21] Agreements and Contracts - Alico entered a new three-year Orange Purchase Agreement with Tropicana, with prices approximately 33% to 50% higher than the previous season's average[25] - The Florida Citrus Commission reduced the minimum Brix value for oranges harvested, potentially increasing the amount of fruit acceptable to processors[20] Corporate Governance and Community Engagement - The company aims to maximize stockholder value through improving returns on invested capital and opportunistic monetization strategies[49] - The company is committed to societal well-being, having provided cash grants and donations to support community health, safety, and education initiatives over the past year[76] - Reports filed with the SEC are available on the company's investor relations website, ensuring transparency and accessibility of financial information[77] - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures[258] Employee and Operational Insights - The company employs a total of 199 employees across various divisions, with 175 in Alico Citrus and 24 in Corporate, General, Administrative, and Other[73] - The company owns and maintains 38 residential housing units in Florida, providing affordable housing to employees, which helps reduce commuting times[74] - Raw materials for crop cultivation, including fertilizers, herbicides, insecticides, and fuel, are readily available from local suppliers without long-term commitments[75] Treatment and Mitigation Efforts - The company treated approximately 4.5 million producing trees with Oxytetracycline Hydrochloride to mitigate the impacts of citrus greening[27] - The average pound solids per box decreased from 5.02 in 2023 to 4.83 in 2024[39] - Alico amended its Credit Agreement, increasing the revolving line of credit from $25,000 to $95,000, extending the maturity date to May 1, 2034[24]