Alico(US:ALCO)2026-02-04 21:42Financial Performance - Total operating revenues for the three months ended December 31, 2025, were $1,887,000, a decrease of 88.8% compared to $16,894,000 for the same period in 2024[17]. - Alico Citrus segment reported revenues of $883,000, down from $16,326,000 year-over-year, indicating a significant decline in performance[17]. - The net loss attributable to Alico, Inc. common stockholders for the three months ended December 31, 2025, was $3,481,000, compared to a net loss of $9,167,000 for the same period in 2024[17]. - Loss per common share for the three months ended December 31, 2025, was $0.45, an improvement from $1.20 in the prior year[17]. - For the three months ended December 31, 2025, Alico reported a net loss of $3,595,000, a decrease from a net loss of $9,251,000 in the same period of 2024[23]. - The Company recorded a gross loss of $5,554,000 for the three months ended December 31, 2025, compared to a gross loss of $8,238,000 for the same period in 2024[92]. Assets and Liabilities - Total assets decreased to $194,962,000 as of December 31, 2025, down from $201,527,000 at September 30, 2025[15]. - Total liabilities decreased to $90,498,000 from $93,533,000, indicating a reduction of 3.3%[15]. - Alico's total stockholders' equity decreased to $104,464,000 from $107,994,000, a decline of 3.5%[15]. - The Company’s long-term debt as of December 31, 2025, was $82,751,000, slightly down from $82,797,000 as of September 30, 2025[77]. - The Company’s total accrued liabilities decreased to $2,428,000 as of December 31, 2025, from $4,563,000 as of September 30, 2025[75]. Cash and Cash Equivalents - Cash and cash equivalents were $34,756,000, down from $38,128,000, reflecting a decrease of 8.5%[15]. - Cash and cash equivalents at the end of the period were $34,756,000, down from $38,128,000 at the end of September 2025[44]. - Net cash used in operating activities for the three months ended December 31, 2025, was $5,469,000, compared to $7,597,000 in the same period of 2024[23]. - The company had total receivables relating to sales of citrus of $591,000 as of December 31, 2025[34]. Strategic Initiatives - Alico announced a Strategic Transformation to wind down its Alico Citrus division due to financial challenges, focusing on diversified land usage and real estate development[25]. - The company sold approximately 600 acres of land for $7,653 during the three months ended December 31, 2025, with no land sales reported in the same period of 2024[70]. - The company had an agreement to sell approximately 2,950 acres of citrus land for $26,859, which translates to $9,110 per acre, with the sale completed on January 14, 2026[69]. Operating Expenses - Total operating expenses decreased to $7,441,000 from $25,132,000, reflecting a reduction of 70.4%[17]. - The Company accrued severance costs of $309,000 for four employees during the three months ended December 31, 2025[76]. - Interest expense for the three months ended December 31, 2025, was $965,000, compared to $898,000 for the same period in 2024[78]. - The Company recorded operating lease costs of $37,000 for the three months ended December 31, 2025, consistent with the previous year[96]. Stockholder Information - The company declared cash dividends of $0.05 per common share for the quarter[17]. - The weighted average common shares outstanding for the three months ended December 31, 2025, were 7,652, compared to 7,633 for the same period in 2024, showing a slight increase[48]. - Stock-based compensation expense for the Board of Directors was $110,000 for the three months ended December 31, 2025, compared to $119,000 in the same period of 2024[99]. - Total stock-based compensation expense for the three months ended December 31, 2025, was $176,000, slightly down from $179,000 in 2024[106]. Tax and Regulatory Matters - The effective tax rate for the three months ended December 31, 2025, was a benefit of 14.3%, differing from the Federal Statutory rate of 21.0% due to a change in the valuation allowance[85]. - The company expects to adopt ASU 2023-09 regarding income tax disclosures effective October 1, 2025, which will not impact its results of operations or financial condition[62]. Inventory and Assets Held for Sale - As of December 31, 2025, total inventories amounted to $4,624, an increase from $4,220 as of September 30, 2025, primarily due to unharvested fruit crop on the trees valued at $4,184[67]. - As of December 31, 2025, the carrying value of assets held for sale was $6,321, down from $9,176 as of September 30, 2025[69]. - The estimated useful life of the Company's citrus trees was changed to approximately 3.50 years, resulting in a net reduction in depreciation of $205,000 for the three months ended December 31, 2025[74]. Subsidiary Performance - Citree, a less-than-100%-owned subsidiary, reported net losses of $233 for the three months ended December 31, 2025, with 51% attributable to the company[61]. - The company has no significant customer concentration as Tropicana is no longer a customer following a Mutual Contract Termination Agreement in May 2025[52].