Alico(US:ALCO)2023-08-05 08:55Financial Data and Key Metrics Changes - For the three months ended June 30, 2023, the company reported net income attributable to Alico common stockholders of approximately $11.8 million, compared to $2.7 million for the same period in the prior year [12] - Total operating revenue for the quarter was approximately $7.3 million, down from $25.9 million for the same quarter in 2022, primarily due to a decrease in Valencia fruit harvested [14] - Adjusted EBITDA was approximately a loss of $1.3 million for the third quarter ended June 30, 2023, compared to a gain of $2.8 million for the same period in the prior fiscal year [21] Business Line Data and Key Metrics Changes - Citrus revenue for the quarter was approximately $6.7 million, down from $25.5 million in the same quarter of the previous year, driven by a decrease in Valencia fruit harvested [14] - The decrease in Valencia box production was down 49%, while the USDA forecasted a decrease of 55% for the Valencia crop [15][16] - The company experienced a 4.4% improvement in the price per pound solids for the three months ended June 30, 2023, due to lower production leading to reduced inventory levels [16] Market Data and Key Metrics Changes - The overall Florida orange crop is expected to decrease from approximately 41.2 million boxes for the 2021-2022 crop year to approximately 15.9 million boxes for the 2022-2023 crop year, a decrease of approximately 61.5% [15] - The Early and Mid-season crop for the season was down 55%, aligning closely with the USDA's forecast of a 56.5% decline [15] Company Strategy and Development Direction - The company is focused on caretaking for its groves and is optimistic about the upcoming harvest season, expecting substantial increases in harvested fruit due to consistent grove caretaking practices and new citrus greening therapy [4][23] - Alico aims to provide investors with the benefits of conventional agricultural investment while enhancing optionality through active land management [24] Management's Comments on Operating Environment and Future Outlook - Management expressed guarded optimism for the upcoming citrus harvest season, citing the recovery from Hurricane Ian and the application of new citrus greening therapy [4][23] - The company is awaiting federal relief funds related to Hurricane Ian and is actively working with industry groups to finalize relief programs [7][24] Other Important Information - The company received approximately $21.4 million in crop insurance proceeds through June 30, 2023, and an additional $0.3 million in July [5] - Alico sold approximately 1,436 acres of ranch land for net proceeds of approximately $7.6 million and is engaged with third parties for additional land sales [11] Q&A Session Summary Question: What is the initial take on the trees and harvest for the 2023-2024 season? - Management indicated it is too early to make forecasts, but inspections show no permanent damage from Hurricane Ian [27] Question: When will a better view of the harvest be available? - Management suggested waiting until closer to the harvest for more accurate estimates [29] Question: What is the size of the Punta Gorda grove? - The Punta Gorda grove is approximately 1,000 acres [31] Question: What are the costs associated with the OTC treatment? - The cost per tree for the OTC treatment has likely decreased to below $1 per application due to economies of scale [33] Question: Can you provide details on the Tropicana contract laddering? - The Tropicana contract extended is one of the smaller contracts, with larger contracts expiring at the end of the next harvest [35]