Alico(US:ALCO)2025-02-13 18:07Financial Data and Key Metrics Changes - For the first fiscal quarter ended December 31, 2024, revenue increased by 21% to $16.9 million compared to $14 million in the prior year period [26] - Adjusted EBITDA was $0.7 million in the first fiscal quarter ended December 31, 2024, compared to a loss of $2.3 million in the first fiscal quarter ended December 31, 2023 [32] - The company reported a net loss attributable to Alico common shareholders of $9.2 million compared to net income of $42.9 million for the first fiscal quarter ended December 31, 2023 [32] Business Line Data and Key Metrics Changes - Alico citrus revenue was $16.3 million compared to $13.6 million in the prior year period, driven by a $2.7 million increase in revenue primarily due to an increase in the price per pound solid [26] - Approximately 4 million pound solids were harvested for the three months ended December 31, 2024, at an average price of $3.69 per pound solid compared to 4.7 million pound solids at $2.66 per pound solid in the prior year period [26] - Land management and other operations revenue increased by 45% to $0.6 million compared to $0.4 million in the prior year period [28] Market Data and Key Metrics Changes - The company expects to realize approximately $20 million in land sales in fiscal 2025 based on transactions that are under option agreements or have been negotiated [36] - The present value of current land holdings could be worth approximately $650 million to $750 million, assuming 10% of those acres are entitled for development within the next five years [23] Company Strategy and Development Direction - The company is focusing on a strategic transformation that balances alternative agricultural operations with strategic land monetization opportunities [6] - Alico plans to wind down its capital-intensive citrus production and transition approximately 25% of its land for non-agricultural purposes [9] - The company aims to maintain its agricultural heritage while creating new opportunities for profitable growth through diversified non-citrus operations [10] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in citrus operations due to citrus greening disease and environmental factors, leading to a 73% decline in citrus production over the last 10 years [11] - The company expects harvest volumes in 2025 to be lower compared to 2024 levels due to the effects of greening and Hurricane Milton [35] - Management is optimistic about the strategic transformation and its potential to unlock value for shareholders [23] Other Important Information - Cash and cash equivalents were $4.4 million as of December 31, 2024, compared to $3.2 million at the end of fiscal year 2024 [33] - Total debt was $104.9 million and net debt was $100.5 million as of December 31, 2024, compared to $92.1 million and $89 million, respectively, at the end of fiscal year 2024 [34] Q&A Session Summary Question: What are the expectations for the citrus harvest in fiscal 2025? - Management expects harvest volumes in 2025 to be lower compared to 2024 levels due to the effects of greening and Hurricane Milton [35] Question: Can you provide details on the land sales expected this fiscal year? - The company expects to realize approximately $20 million in land sales based on transactions that are under option agreements or have been negotiated [36] Question: What is the outlook for cash flow and liquidity? - Management reiterated that cash flow has been positive since January and expects to end the fiscal year with enough cash to meet operating expenses for fiscal years 2026 and 2027 [19]