Citrus fruits

Search documents
Alico(ALCO) - 2025 Q3 - Earnings Call Transcript
2025-08-13 13:30
Financial Data and Key Metrics Changes - For Q3 FY2025, revenue decreased by 38% to $8.4 million compared to $13.6 million in the prior year period [11] - For the nine months ended June 30, 2025, revenue decreased by 5% to $43.3 million compared to $45.7 million in the prior year period [11] - Net loss attributable to common stockholders for Q3 FY2025 was $18.3 million, compared to a loss of $2 million in the same period last year [14] - EBITDA for Q3 FY2025 was $19.2 million, compared to $1.3 million for Q3 FY2024 [16] - Cash and cash equivalents increased to $42.1 million as of June 30, 2025, from $3.2 million at the end of FY2024 [16] Business Line Data and Key Metrics Changes - Citrus harvest volumes for Q3 FY2025 were approximately 2.1 million pound solids, down from 4.3 million pound solids in Q3 FY2024 [11] - Land Management and other operations revenue increased by 5768% for Q3 FY2025, primarily due to increased rock and sand royalty income and sod sales [12] - The company completed its last major citrus harvest in April 2025, marking a shift away from capital-intensive citrus operations [5][18] Market Data and Key Metrics Changes - The company achieved $9.3 million from combined land and equipment sales in Q3 FY2025, with year-to-date land sales reaching $23.5 million, exceeding the original guidance of $20 million [6][20] - The estimated present value of near-term real estate development projects is between $335 million and $380 million, representing significant value from just 10% of land holdings [9] Company Strategy and Development Direction - The company is transitioning to a diversified land company model, focusing on land development and diversified usage strategies [5][18] - The approval of House Bill 4,041 for the Corkscrew Grove Stewardship District is a significant regulatory milestone that supports the company's development strategy [7][19] - The company is maintaining a balance between high-value property development and diversified agricultural operations [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver enhanced long-term returns for shareholders, with expectations of approximately $20 million in adjusted EBITDA for FY2025 [20][21] - The company is positioned to end the fiscal year with at least $25 million in cash and sufficient liquidity to fund operations through FY2027 [20] Other Important Information - The company has no significant debt maturities until 2029, with total debt at $85.2 million and net debt at $43.2 million as of June 30, 2025 [17] Q&A Session Summary Question: Are you currently in discussions for additional land sales? - Management indicated that discussions are ongoing, but the timing for closing these transactions is uncertain, potentially rolling into FY2026 [25][26] Question: What are potential milestones to watch for regarding Corkscrew? - Management noted that external variables could affect the entitlement process, but they remain confident in the timeline for securing permits [27][28] Question: Will Alico partner with other groups on development? - Currently, Alico is handling the entitlement process independently, with no immediate need for partners, but they have options for future partnerships [29][30][31]
Alico(ALCO) - 2025 Q2 - Earnings Call Transcript
2025-05-14 13:32
Financial Data and Key Metrics Changes - Revenue for the second fiscal quarter decreased by 1% to $18 million compared to $18.1 million for the prior year period [15] - For the six months ended March 31, 2025, revenue decreased by 9% to $34.9 million compared to $32.1 million for the prior year period [15] - The company reported a net loss attributable to common shareholders of $111.4 million for the three months ended March 31, 2025, compared to a loss of $15.8 million for the same period in the prior year [18] - EBITDA for the three months ended March 31, 2025, was a loss of $14.7 million compared to a loss of $16.5 million for the same period in the prior year [18] - Adjusted EBITDA for the three months ended March 31, 2025, was a gain of $12.7 million compared to a loss of $16.5 million for the same period in the prior year [18] Business Line Data and Key Metrics Changes - Alico harvested approximately 4.7 million and 8.7 million pound solids of fruit for the three and six months ended March 31, 2025, respectively, compared to 5.8 million and 10.4 million pound solids in the same periods of the prior fiscal year [15] - Land management and other operations revenue increased by 10,774% for the three and six months ended March 31, 2025, primarily due to increased rock and sand royalty income and sod sales [16] Market Data and Key Metrics Changes - The blended price per pound solids for the three and six months ended March 31, 2025, increased by $0.70 and $0.85, respectively, due to more favorable pricing in a contract with Tropicana [16] Company Strategy and Development Direction - The company is transitioning to a diversified land company, having completed the majority of its capital investment in citrus operations [5] - Alico has completed the sale of 2,100 acres this year and raised its outlook for land sales to potentially exceed $50 million, a 150% increase from prior guidance [6] - The company is engaged with agricultural operators to diversify its remaining agricultural activities, including sod production and seasonal crops [7] - Alico is advancing entitlement work for development properties, with a significant project planned for Corkscrew Grove Villages, which includes two mixed-use master plan communities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic transformation, projecting a cash balance of approximately $25 million and net debt of about $60 million by the end of fiscal year 2025 [21] - The company expects to generate approximately $20 million in adjusted EBITDA for fiscal year 2025, supported by land sales and cash generated from citrus harvests [22] - The present value of current land holdings is estimated to be worth between $650 million and $750 million, with 75% valued for agricultural use [22] Other Important Information - The company amended its credit agreement to adjust financial covenants and reduce insurance coverage requirements, resulting in cost savings [13] - A $50 million share repurchase program was announced as part of the capital allocation strategy [13] Q&A Session Summary Question: Can you provide additional details on the $15.8 million gain in the quarter? - The gain was from the sale of 2,100 acres of land [28] Question: Are there ongoing discussions for additional land sales to achieve the $50 million target? - The company is in discussions for potential land sales, but timing is uncertain due to the diligence process [30] Question: What milestones can be expected for the Corkscrew project before potential entitlement approvals? - The entitlement approvals themselves will serve as milestones, with various meetings and revisions expected [31]
Alico(ALCO) - 2025 Q2 - Earnings Call Transcript
2025-05-14 13:30
Financial Data and Key Metrics Changes - Revenue for the second fiscal quarter decreased by 1% to $18 million compared to $18.1 million for the prior year period [13] - For the six months ended March 31, 2025, revenue decreased by 9% to $34.9 million compared to $32.1 million for the prior year period [13] - The company reported a net loss attributable to common shareholders of $111.4 million for the three months ended March 31, 2025, compared to a loss of $15.8 million for the same period in the prior year [17] - EBITDA for the three months ended March 31, 2025, was a loss of $14.7 million compared to a loss of $16.5 million for the same period in the prior year [17] - Adjusted EBITDA for the three months ended March 31, 2025, was a gain of $12.7 million compared to a loss of $16.5 million for the same period in the prior year [17] Business Line Data and Key Metrics Changes - Alico harvested approximately 4.7 million and 8.7 million pound solids of fruit for the three and six months ended March 31, 2025, respectively, compared to 5.8 million and 10.4 million pound solids in the same periods of the prior fiscal year [14] - Land management and other operations revenue increased by 10,774% for the three and six months ended March 31, 2025, primarily due to increased rock and sand royalty income and sod sales [15] Market Data and Key Metrics Changes - The company completed the sale of 2,100 acres of land in the second quarter of 2025, contributing to other income of $15.3 million for that quarter [16] - The company raised its outlook for land sales to potentially exceed $50 million for the fiscal year, a 150% increase from prior guidance [6] Company Strategy and Development Direction - The company is transitioning to a diversified land company, having completed its major capital investment in citrus operations [5] - Alico is actively engaged with agricultural operators to diversify its remaining agricultural activities, including sod production and seasonal crop leases [7] - The company is pursuing development opportunities for its properties, including the Corkscrew Grove Villages project, which aims to create mixed-use master plan communities [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic transformation, projecting a cash balance of approximately $25 million and net debt of about $60 million by the end of the fiscal year [19] - The company expects to generate approximately $20 million in adjusted EBITDA for fiscal year 2025, supported by land sales and cash generated from citrus harvests [20] Other Important Information - The company amended its credit agreement to adjust financial covenants and reduce insurance coverage requirements, resulting in cost savings [12] - A $50 million share repurchase program was announced as part of the capital allocation strategy [12] Q&A Session Summary Question: Can you provide additional details on the $15.8 million from land sales in the quarter? - The $15.8 million was from the sale of 2,100 acres located in Henry County [25][26] Question: Are there ongoing discussions for additional land sales to achieve the $50 million target? - The company is in discussions for additional land sales, but the timing is uncertain due to the diligence process [28] Question: What milestones can be expected for the Corkscrew project before potential entitlement approvals? - The entitlement approvals themselves will serve as milestones, with individual meetings and revisions expected throughout the process [29]
Alico, Inc. Announces Financial Results for the Second Quarter Ended March 31, 2025
GlobeNewswire News Roomยท 2025-05-13 21:20
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]