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]

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]

Revenue and Losses - Total operating revenues for the three months ended March 31, 2025, were $17,980,000, a decrease of 0.7% compared to $18,113,000 for the same period in 2024[18] - Alico Citrus segment reported revenues of $17,253,000 for the three months ended March 31, 2025, down from $17,762,000 in the prior year, reflecting a decline of 2.9%[18] - Net loss attributable to Alico, Inc. common stockholders for the three months ended March 31, 2025, was $111,385,000, compared to a net loss of $15,804,000 for the same period in 2024[18] - For the six months ended March 31, 2025, Alico, Inc. reported a net loss of $120.684 million compared to a net income of $26.423 million for the same period in 2024[28] - The total gross loss profit for the six months ended March 31, 2025, was $157,935,000, compared to a gross loss of $32,413,000 for the same period in 2024[101] Assets and Liabilities - Total assets decreased to $243,165,000 as of March 31, 2025, down from $398,719,000 as of September 30, 2024[15] - Total liabilities decreased to $107,954,000 as of March 31, 2025, compared to $142,424,000 as of September 30, 2024[15] - The company had total assets of $243,165,000 as of March 31, 2025, down from $398,719,000 as of September 30, 2024, reflecting a decrease of 39.0%[100] Cash and Cash Equivalents - Cash and cash equivalents increased to $14,659,000 as of March 31, 2025, from $3,150,000 as of September 30, 2024[15] - Alico's cash and cash equivalents at the end of the period were $15.421 million, up from $5.966 million at the end of the same period in 2024[28] - The company had cash and cash equivalents of $14,659,000 as of March 31, 2025, compared to $3,150,000 on September 30, 2024[48] Dividends and Stock - The company declared cash dividends of $0.05 per common share for both the three and six months ended March 31, 2025[18] - The weighted-average number of common shares outstanding for the three months ended March 31, 2025, was 7,637,000, slightly up from 7,620,000 in the same period of 2024[18] - The weighted average common shares outstanding for diluted earnings per share remained stable at 7,637,000 for the three months ended March 31, 2025, compared to 7,620,000 in 2024[52] Strategic Changes - Alico plans to focus on long-term diversified land usage and real estate development strategy, winding down citrus production operations[12] - The company plans to wind down its Alico Citrus division due to financial challenges, with a workforce reduction of up to 172 employees approved by the Board[30] Impairments and Adjustments - The company reported a significant impairment of long-lived assets amounting to $24.966 million during the six months ended March 31, 2025[28] - The company recognized an impairment of long-lived assets totaling $24,966,000 for the three and six months ended March 31, 2025, due to reduced cash flow estimates[56] - The company recognized an impairment of $24,966,000 related to its young trees and long-lived assets due to the Strategic Transformation[75] Inventory and Receivables - Accounts receivable related to citrus sales as of March 31, 2025, amounted to $9,145,000, significantly higher than $444,000 recorded on September 30, 2024[43] - The company recorded inventory adjustments of $9,895,000 and $28,549,000 for the six months ended March 31, 2025 and 2024, respectively, primarily due to lower than anticipated harvests caused by Hurricane Milton[67] - As of March 31, 2025, total inventories decreased to $7,247,000 from $30,084,000 as of September 30, 2024[66] Debt and Financial Compliance - The company’s long-term debt as of March 31, 2025, was $88,536,000, with an estimated fair value of $83,713,000[49] - Long-term debt as of March 31, 2025, was $81,654,000, a slight decrease from $82,313,000 as of September 30, 2024[83] - The company was in compliance with all financial covenants as of March 31, 2025, including a minimum debt service coverage ratio of 1.10 to 1.00[91] Stock Options and Compensation - As of March 31, 2025, the company has 38,000 stock options vested and outstanding with a weighted average exercise price of $33.75 and a remaining contractual term of 1.8 years[112] - The company granted market-based restricted stock units (MRSUs) on December 23, 2024, with thresholds set at $35, $40, and $45 per share, allowing for the potential earning of up to 38,000 MRSUs[113] - Total unrecognized stock compensation costs for MRSUs as of March 31, 2025, amount to $422,000, compared to $0 as of September 30, 2024[115] Other Financial Metrics - The effective tax rate for the three months ended March 31, 2025, was a benefit of 19.4%, differing from the Federal Statutory rate of 21.0% primarily due to a change in the valuation allowance[96] - The Amended RLOC had a variable interest rate of 6.53% as of March 31, 2025, compared to 7.30% as of September 30, 2024[90] - The company has a minimum current ratio requirement of 1.50 to 1.00, which it maintained as of March 31, 2025[91] Legal and Compliance - There are no current legal proceedings that the company believes will have a material adverse effect on its financial condition[116]

Financial Performance - Alico, Inc. reported revenue of $17.98 million for the three months ended March 31, 2025, a decrease of 0.7% compared to $18.11 million in the same period of 2024[4]. - The net loss attributable to Alico common stockholders for the three months ended March 31, 2025, was $111.39 million, a significant increase of 604.8% from a loss of $15.80 million in the prior year[4]. - Adjusted EBITDA for the three months ended March 31, 2025, was $12.73 million, compared to a loss of $16.47 million in the same period of 2024[5]. - Total operating revenues for the three months ended March 31, 2025, were $17,980,000, a decrease of 0.73% compared to $18,113,000 for the same period in 2024[39]. - Alico Citrus segment reported operating revenues of $17,253,000 for the three months ended March 31, 2025, down from $17,762,000 in the prior year, reflecting a decline of 2.86%[39]. - The company incurred a gross loss of $149,697,000 for the three months ended March 31, 2025, compared to a gross loss of $18,158,000 for the same period in 2024[39]. - Net loss attributable to Alico, Inc. common stockholders for the six months ended March 31, 2025, was $120,552,000, compared to net income of $27,141,000 for the same period in 2024[39]. - Adjusted EBITDA for the six months ended March 31, 2025, was $6,057,000, a decrease from $47,343,000 for the same period in 2024[45]. Cash and Debt Management - Alico's cash balance is projected to reach approximately $25 million by the end of fiscal year 2025, with net debt expected to be around $60 million[3]. - The Company expects land sales to potentially exceed $50 million for fiscal year 2025, supported by $20 million in previously announced land sales and cash generated from the citrus harvest[3]. - Alico's liquidity position remains strong with $14.66 million in cash and cash equivalents and $88.5 million in available credit facilities[2]. - Total debt was $89.6 million and net debt was $74.9 million at March 31, 2025, compared to $92.1 million and $89.0 million, respectively, at September 30, 2024[22]. - The Company expects to realize approximately $20 million in land sales in fiscal year 2025, with potential for an additional $30 million, representing a 150% increase from prior guidance[28]. - The Company anticipates ending fiscal year 2025 with approximately $25 million in cash and net debt of approximately $60 million[29]. - Cash and cash equivalents increased to $15,421,000 as of March 31, 2025, from $5,966,000 at the end of the prior year[41]. - Total liabilities decreased to $107,954,000 as of March 31, 2025, compared to $142,424,000 as of September 30, 2024, a reduction of 24.1%[38]. - Total debt as of March 31, 2025, was $89,558,000, down from $92,117,000 as of September 30, 2024[46]. - Net debt as of March 31, 2025, was $74,899,000, compared to $88,967,000 as of September 30, 2024[46]. - Current portion of long-term debt remained stable at $1,410,000 for both March 31, 2025, and September 30, 2024[46]. - Long-term debt, net, decreased slightly to $81,654,000 as of March 31, 2025, from $82,313,000 as of September 30, 2024[46]. Operational Highlights - Citrus production for the three months ended March 31, 2025, saw a total of 923 boxes harvested, a decline of 20.4% from 1,159 boxes in the same period of 2024[7]. - The average price per pound solids for early and mid-season citrus increased by 19.6% to $3.66 compared to $3.06 in the prior year[7]. - Land Management and Other Operations revenue increased by 107.1% for the three months ended March 31, 2025, primarily due to higher rock and sand royalty income[11]. - General and administrative expenses rose by $1.1 million for the three months ended March 31, 2025, mainly due to accelerated depreciation and higher legal fees related to the Strategic Transformation[13]. - Other income for the six months ended March 31, 2025, was a gain of $14.2 million, down from $75.0 million for the same period in 2024, primarily due to fewer land sales[16]. Strategic Initiatives - Alico announced the creation of Corkscrew Grove Villages, which will include approximately 9,000 homes and 375 affordable housing units per village, enhancing public infrastructure and conservation efforts[19]. - The first village of Corkscrew Grove is expected to begin construction in 2028 or 2029, pending regulatory approvals[20]. - Alico has a long history of conservation, having sold over 17,000 acres of land to the Florida Department of Environmental Protection in 2023, contributing to the Florida Wildlife Corridor[25]. - The Company is committed to a strategic transformation focusing on diversified land usage and real estate development, winding down its citrus production operations[31]. Dividend Information - The Company paid a second quarter cash dividend of $0.05 per share on April 11, 2025, to stockholders of record as of March 28, 2025[17]. - The company declared cash dividends of $0.05 per common share for both the three and six months ended March 31, 2025, consistent with the prior year[39].

Core Viewpoint - Alico, Inc. is set to release its financial results for the second quarter ended March 31, 2025, on May 13, 2025, after market close [1] Financial Results Announcement - The company will host a conference call on May 14, 2025, at 8:30 am Eastern Time to discuss the financial results [2] - Interested parties can join the call by dialing specific numbers for the United States and international participants, with the participant identification being ALICO [2] Telephone Replay Information - A telephone replay of the conference call will be available approximately three hours after the call concludes on May 14, 2025, and will remain accessible until May 28, 2025 [3] - Specific dial-in numbers and a passcode for the playback are provided for both U.S. and international listeners [3] 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 [4] - Alico Citrus will wind down operations after the current crop is harvested in the first half of 2025 due to environmental and financial challenges [4] - The company remains committed to Florida's agriculture industry and will focus on a long-term diversified land usage and real estate development strategy [4]

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 related support operations [3] - Alico Citrus will wind down operations after the current crop is harvested in the first half of calendar year 2025 due to environmental and financial challenges [3] - The company remains committed to Florida's agriculture industry and will focus on a long-term diversified land usage and real estate development strategy [3] Upcoming Events - John Kiernan, the President and CEO of Alico, will present and host one-on-one meetings at the Planet Microcap Showcase: VEGAS 2025 from April 22-24, 2025 [1] - The presentation is scheduled to begin at 12:00 PM ET on April 23, 2025, and will be accessible live [2] - Management will also host one-on-one meetings with investors on April 24, 2025 [2]

Core Viewpoint - Alico, Inc. has amended its credit agreement to better align financial covenants with its strategic transformation, which includes reducing insurance coverage requirements for the upcoming harvest season, leading to cost savings for the company [1][2][3]. Group 1: Credit Agreement Amendment - The Amendment No. 7 to the First Amended and Restated Credit Agreement became effective on March 31, 2025, and adjusts certain financial covenants to support Alico's evolving business model [2]. - The Amendment specifically reduces the level of Crop and Tree Insurance coverage required for the 2025/2026 harvest season, which is expected to result in cost savings for Alico [2]. Group 2: Business Transformation - John Kiernan, President and CEO, stated that the amendments create a more flexible financial framework while maintaining appropriate discipline, reflecting the company's ongoing business transformation [3]. - Alico Citrus, one of the nation's largest citrus producers, will wind down operations after the 2024/2025 harvest due to environmental and financial challenges, shifting focus to long-term diversified land usage and real estate development [4]. Group 3: Company Operations - Alico operates two divisions: Alico Citrus and Land Management and Other Operations, which include land leasing and related support operations [4]. - The company remains committed to Florida's agriculture industry despite the winding down of its citrus operations, emphasizing a strategy focused on diversified land usage and real estate development [4].

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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 [3] - Alico Citrus will cease operations after the 2024/2025 harvest due to environmental and financial challenges, while the company will focus on long-term diversified land usage and real estate development strategy [3] Upcoming Event - John Kiernan, President and CEO of Alico, will present and host one-on-one meetings with investors at the 15th Annual LD Micro Invitational on April 9 and 10, 2025 [1][2] - Alico's presentation is scheduled for 9:00 AM ET on April 10, 2025, and the event will feature presentations from 50 companies [2]

Core Viewpoint - Alico, Inc. has filed a development application for the "Corkscrew Grove East Village," marking a significant step in its strategic transformation towards land development and environmental stewardship [1][3]. Group 1: Development Plans - The development plan includes two mixed-use villages, each spanning 1,500 acres, aimed at creating a residential and commercial hub in Collier County [2]. - Initial development will focus on the Corkscrew Grove East Village, with construction expected to start after obtaining necessary permits by 2028 or 2029 [2]. Group 2: Strategic Assets and Value - Alico aims to monetize four strategic assets totaling approximately 5,500 acres, representing about 10% of its land holdings, within the next five years, with an estimated value of $335-380 million [3]. - The Corkscrew Grove Villages are part of Alico's strategy to unlock value from its land holdings and respond to the growing demand for housing and commercial space in Southwest Florida [3]. Group 3: Environmental Commitment - Alico is setting aside an additional 6,000 acres for permanent conservation, demonstrating its commitment to balanced development and environmental stewardship [1]. - The project aligns with the goals of Collier County's Rural Land Stewardship Area (RLSA), which aims to enhance agricultural lands and natural resources while allowing for well-planned community development [3]. Group 4: Governance and Coordination - A local bill has been filed to establish the Corkscrew Grove Stewardship District, which will facilitate coordinated management of development and environmental conservation [4]. - This district is expected to enhance collaboration with stakeholders and provide transparency in Alico's development plans [4].