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Alico, Inc. Announces Financial Results for the Second Quarter Ended March 31, 2025
ALCOAlico(ALCO) GlobeNewswire News Room·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 50millionforfiscalyear2025,supportedbyongoingnegotiationsandagreements[1][2][25]−Alico′sfinancialguidancenowincludescashbalance,netdebt,andadjustedEBITDAtargetsforfiscalyear2025,projectingacashbalanceofapproximately50 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 60million[1][2][26]FinancialPerformance−ForthesecondquarterendedMarch31,2025,Alicoreportedrevenueof60 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 18.11millioninthesameperiodof2024[3]−ThenetlossattributabletoAlicocommonstockholdersforthequarterwas18.11 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 15.8millionintheprioryear,primarilyduetoaccelerateddepreciationandimpairmentrelatedtothestrategictransformation[4][5]−AdjustedEBITDAforthesecondquarterwas15.8 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 16.5millioninthesamequarterof2024[5]CitrusOperations−AlicocompleteditslastmajorcitrusharvestinApril2025,withplansforafinalharvestonremainingoperationalcitrusgrovesinfiscalyear2026[2][24]−Citrusproductionsawadecline,withtotalprocessedboxesdown20.416.5 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 88.5millioninavailablecreditfacilities[1][19]−Thecompany′sworkingcapitalwas88.5 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 89.6million,withnetdebtat89.6 million, with net debt at 74.9 million, showing a decrease from the previous fiscal year [19]