Alico(US:ALCO)2025-11-24 21:11Financial Performance - For the fiscal year ended September 30, 2025, Alico, Inc. reported a net loss of $147.3 million, a significant decline from a net income of $7.0 million in the previous year, primarily due to accelerated depreciation and impairments [6][7]. - Adjusted EBITDA for the fiscal year was $22.5 million, exceeding the guidance of $20 million, while total revenue decreased by 5.5% to $44.1 million [1][4]. - Total operating revenues decreased to $44,066 thousand in 2025 from $46,643 thousand in 2024, a decline of approximately 6% [37]. - Alico Citrus operating revenues fell to $41,337 thousand in 2025, down from $45,059 thousand in 2024, representing a decrease of about 8% [37]. - Total operating expenses increased significantly to $236,260 thousand in 2025 from $103,026 thousand in 2024, marking an increase of approximately 129% [37]. - Net loss attributable to Alico, Inc. common stockholders was $147,334 thousand in 2025, compared to a net income of $6,973 thousand in 2024 [37]. - Adjusted EBITDA for the year ended September 30, 2025, was $22,541 thousand, while it was $29,733 thousand in 2024, indicating a decrease of about 24% [43]. Cash Flow and Debt Management - The company achieved land sales of $23.8 million, surpassing the $20 million guidance, contributing to strong cash generation with cash and cash equivalents of $38.1 million [1][2]. - Net cash provided by operating activities was $20,126 thousand in 2025, a recovery from a cash used of $30,497 thousand in 2024 [39]. - Alico's net debt was reduced to $47.4 million, outperforming balance sheet targets, and the company ended the fiscal year with sufficient cash to cover expected operating expenses through fiscal year 2027 [2][4]. - Net debt decreased to $47,419 thousand in 2025 from $88,967 thousand in 2024, a reduction of approximately 47% [44]. - Cash and cash equivalents at the end of the period increased to $38,890 thousand in 2025 from $3,398 thousand in 2024 [39]. Asset and Liability Management - Alico's total assets decreased from $398.7 million in 2024 to $201.5 million in 2025, reflecting a significant reduction in property and equipment [35]. - Current assets increased from $40.6 million in 2024 to $54.9 million in 2025, primarily due to a rise in cash and cash equivalents from $3.2 million to $38.1 million [35]. - Total liabilities decreased from $142.4 million in 2024 to $93.5 million in 2025, indicating improved financial health [35]. - Stockholders' equity fell from $256.3 million in 2024 to $108.0 million in 2025, largely due to a decline in retained earnings from $249.3 million to $100.4 million [35]. Operational Challenges - Citrus production decreased by 25.9% year-over-year, with a total of 2.3 million boxes harvested, attributed to Hurricane Milton's impact [10][11]. - Other income decreased significantly from $78.4 million to $18.0 million, primarily due to lower gains from land sales compared to the previous fiscal year [15]. - General and administrative expenses increased by $0.6 million due to strategic transformation costs, despite a reduction in workforce-related expenses [14]. - Interest expense rose to $4,848 thousand in 2025 from $3,538 thousand in 2024, an increase of approximately 36% [37]. Strategic Initiatives - Alico's strategic transformation in 2025 focuses on diversified land usage and real estate development, aiming to create long-term shareholder value [28]. - The company is advancing its Corkscrew Grove Villages project, with a final decision on regulatory approvals expected in 2026, which is anticipated to enhance public infrastructure and provide economic benefits [5][17]. - Alico plans to develop Corkscrew Grove Villages, which will include approximately 375 income-restricted units per village and a total of 560,000 square feet of commercial space [19]. - The first village's approval process is expected to take about one year, with a final decision anticipated in 2026, and construction could begin in 2028 or 2029 if all approvals are granted [20]. - Alico has committed approximately $5 million towards the design and construction of a wildlife underpass as part of the State Road 82 expansion, with completion expected in 2027 [22]. - The Corkscrew Grove Stewardship District was established to assist in financing infrastructure and managing natural areas, promoting sustainable growth [21]. Liquidity Position - Working capital was reported at $49.2 million, with a current ratio of 9.56 to 1.00, indicating strong liquidity [18].