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]

Financial Performance - LandBridge's Q1 2025 revenue increased by 131% year-over-year[10] - Adjusted EBITDA for Q1 2025 increased by 129% year-over-year[10] - Non-oil and gas royalty revenue reached approximately 92% of total revenue in Q1 2025[10] - Adjusted EBITDA margin was 88% in Q1 2025[11] - Free Cash Flow Margin was 36% in Q1 2025[11] Operational Highlights - Surface use royalty volumes increased by approximately 72% to approximately 14 million barrels per day (MMBPD) in Q1 2025[10] - LandBridge acquired approximately 3000 surface acres in Lea County, NM and approximately 800 surface acres in Reeves County, Texas, bringing total surface acreage owned to approximately 277000 acres[10] Capital Allocation - A quarterly cash dividend of $010 per share was announced[10] - The company targets a net leverage ratio of 20-25x by mid-year 2025[28] Revenue Streams - Surface Use Royalties and Revenues accounted for 59% of YTD diversified streams[23] - Resource Sales and Royalties accounted for 33% of YTD diversified streams[23] - Oil & Gas Royalties accounted for 8% of YTD diversified streams[23]

Core Viewpoint - Alico, Inc. is transitioning its business focus from citrus production to long-term diversified land usage and real estate development due to environmental and financial challenges faced in the citrus industry [2]. Group 1: Company Overview - Alico, Inc. operates two divisions: Alico Citrus, one of the largest citrus producers in the U.S., and Land Management and Other Operations, which includes land leasing and support operations [2]. - Alico Citrus will cease operations after the current crop is harvested in the first half of 2025 [2]. Group 2: Investor Engagement - John Kiernan, President and CEO of Alico, will host one-on-one meetings with investors at the BMO Global Farm to Market Conference on May 14-15, 2025, in New York City [1].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a revenue increase of 109% year-over-year, reaching $36.5 million, and an adjusted EBITDA increase of 108% year-over-year with an adjusted EBITDA margin of 87% [3][12] - For the full year 2024, revenues grew by 51% year-over-year to $110 million, and adjusted EBITDA increased by 55% year-over-year to $97.1 million, achieving an adjusted EBITDA margin of 88% [3][12][15] - Free cash flow for Q4 2024 was approximately $26.7 million, with a free cash flow margin of 73%, while the full year generated $66.7 million of free cash flow [16][21] Business Line Data and Key Metrics Changes - Surface use royalties and revenues increased by 54% sequentially in Q4, contributing significantly to revenue growth [13] - Non-oil and gas royalty revenue accounted for nearly 90% of overall revenue in Q4, remaining flat from the prior quarter but up about 20% year-over-year [14] - Resource sales and royalties declined by 28% sequentially due to decreased brackish water sales and royalty volumes [13] Market Data and Key Metrics Changes - The company expanded its land holdings from approximately 72,000 surface acres to approximately 273,000 surface acres, with significant acquisitions in Q4 [4][5] - The acquisition of the Wolf Bone Ranch added 46,000 acres in a strategic location for oil and natural gas production, securing a minimum annual revenue commitment of $25 million for the next five years [5] Company Strategy and Development Direction - The company is focused on expanding its active land management strategy, which has proven effective in creating shareholder value [4] - Future growth opportunities are identified in digital infrastructure, renewable energy, and commercial real estate, with recent agreements for solar energy project development [6][7] - The company aims to maintain a strong balance sheet while pursuing value-enhancing land acquisitions, focusing on underutilized and under-commercialized surface [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from digital infrastructure and the demand for data centers, particularly in West Texas [8][9] - The company reaffirmed its guidance for 2025, expecting adjusted EBITDA of $170 million to $190 million, driven by contributions from recent acquisitions and increased surface use royalties [22] Other Important Information - The company ended 2024 with $385 million of debt, up from $281.3 million at the end of Q3 2024, and total liquidity of $107 million [19][21] - A cash dividend of $0.10 per share was declared, with plans to revisit the amount quarterly [21] Q&A Session Summary Question: Surface use economic efficiency growth expectations - Management indicated that there is still significant room for improvement in surface use economic efficiency, with potential to achieve over $3,000 per acre [25][27] Question: Details on the WES agreement and third-party agreements - The WES agreement is expected to generate low to mid-teens of royalties once operational, with ongoing discussions for additional third-party agreements [29][32] Question: Data center roadmap and revenue opportunities - The data center project has a 2-year site selection period followed by a 4-year construction period, with expected revenues ramping up as construction phases come online [36][39] Question: M&A outlook and market fragmentation - The market remains fragmented with many opportunities for M&A, which continues to be a priority for capital allocation [80][82] Question: Impact of oil prices on 2025 guidance - The 2025 guidance does not incorporate significant ramps based on oil prices, as the company is insulated from commodity price fluctuations [74][75]

Core Viewpoint - Alico, Inc. is undergoing a strategic transformation, shifting focus from citrus production to diversified land usage and real estate development, with plans to wind down citrus operations by mid-2025 [2][5]. Company Overview - Alico operates two divisions: Alico Citrus, one of the largest citrus producers in the U.S., and Land Management and Other Operations, which includes land leasing and support operations [2]. - The company is committed to Florida's agriculture industry despite the challenges faced in citrus production [2]. Strategic Transformation - Alico's strategic transformation includes a focus on long-term diversified land usage and real estate development, with an estimated portfolio value of $650-$750 million [5]. - The company plans to monetize select land assets, expecting $20 million in transactions to close in fiscal 2025 [5]. - Development of alternative agricultural revenue streams through leasing arrangements and seasonal crops is part of the strategy [5]. Future Outlook - Alico's management will provide updates on the execution of its strategic transformation during one-on-one meetings with investors at the 37th Annual ROTH Conference on March 17 and 18, 2025 [1].