Alico(US:ALCO)2022-12-16 15:51Financial Data and Key Metrics Changes - For the fiscal year ended September 30, 2022, the company reported net income attributable to Alico common stockholders of approximately $12.5 million, a decrease from approximately $34.9 million for the fiscal year ended September 30, 2021 [7][23] - Adjusted EBITDA for the fiscal year ended September 30, 2022, was approximately $13.4 million, down from approximately $25.3 million for the fiscal year ended September 30, 2021 [8][23] - Total operating revenue was $91.9 million for the fiscal year ended September 30, 2022, compared to $108.6 million for the fiscal year ended September 30, 2021 [13] Business Line Data and Key Metrics Changes - Citrus revenue decreased to $89.7 million for the fiscal year ended September 30, 2022, from $105.8 million for the fiscal year ended September 30, 2021, primarily due to lower box production and a reduction in Grove Management Services [13][14] - Operating revenue from Grove Management Services was approximately $11.9 million for the fiscal year ended September 30, 2022, down from $17 million in the previous fiscal year [17] Market Data and Key Metrics Changes - The USDA indicated that the Florida orange crop decreased by 22.5% to approximately 41.1 million boxes for the 2021/2022 harvest season, while Alico's box production declined by 12.9% [17] Company Strategy and Development Direction - The company plans to continue evaluating non-citrus assets and has sold approximately 9,400 acres of ranch land, with about 20,000 acres remaining for potential sale [11] - Future capital allocation decisions will focus on maximizing returns to shareholders, which may include acquiring additional citrus acres, repurchasing shares, or considering special dividends [11] Management's Comments on Operating Environment and Future Outlook - Management noted that fiscal year 2023 will see lower revenue due to reduced fruit availability and anticipated recovery of groves may take up to two seasons [7] - The company is working closely with industry groups and government agencies to seek federal relief for recovery from Hurricane Ian [9][38] Other Important Information - The company has improved its debt-to-equity ratio to 0.45 to 1 as of September 30, 2022, down from 0.50 to 1 a year ago, and has significantly reduced long-term debt levels [8][24] - Alico's Board of Directors voted to reduce the next quarterly common dividend to $0.05 per share due to the impact of recent storms [27] Q&A Session Summary Question: Insights on crop insurance status and timing - Management confirmed that crop insurance is in place for all acres, primarily catastrophic, and actual measurements will be taken at the end of the crop season [31] Question: Visibility on harvest quality and timing - Management indicated that visibility on the quality of the harvest will improve in a few weeks, with the Valencia season expected to start in mid-February [33][34] Question: Updates on federal relief - Management stated that there is limited visibility on federal relief funding, which is expected to be dependent on federal funding rather than state-driven programs [38][40] Question: Real estate market activity - Management noted continued demand for real estate, with several buyers negotiating or in contract stages for Alico Ranch properties [42]