Alico Inc (ALCO, Financial) released its 8-K filing on August 5, 2024, detailing its financial results for the third quarter and nine months ended June 30, 2024. Alico Inc is a Florida-based agribusiness and land management company that primarily focuses on citrus production and grove conservation. The company operates through two primary business units: Alico Citrus and Land Management and Other Operations.
Performance Overview
For the third quarter of fiscal year 2024, Alico Inc reported revenue of $13.61 million, an 86.8% increase from $7.28 million in the same period last year. However, the company posted a net loss of $2.04 million, or $(0.27) per diluted share, compared to a net income of $11.83 million, or $1.56 per diluted share, in Q3 2023. The quarterly results were impacted by the absence of Hurricane Ian insurance proceeds, which had significantly boosted last year's earnings.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue | $13.61 million | $7.28 million | 86.8% |
| Net (Loss) Income | $(2.04) million | $11.83 million | (117.3)% |
| EBITDA | $1.34 million | $18.79 million | (92.9)% |
| Adjusted EBITDA | $(3.39) million | $(1.29) million | (163.6)% |
Operational Highlights
Alico Inc's citrus production showed signs of recovery, with the company harvesting approximately 0.8 million and 3.1 million boxes of fruit for the three and nine months ended June 30, 2024, respectively. This represents a significant increase from the same periods last year. The company also entered a new three-year agreement to sell oranges to Tropicana at prices 33% to 50% higher than the previous season.
Financial Achievements
The company maintains a strong balance sheet with approximately $94.8 million available under lines of credit, a working capital ratio of 2.67 to 1.00, and a debt to total assets ratio of 0.20 to 1.00 as of June 30, 2024. These metrics are crucial for Alico Inc as they provide the financial flexibility needed to navigate the challenges posed by natural disasters and market fluctuations.
Challenges and Future Outlook
The company faced significant challenges due to the lingering effects of Hurricane Ian, which impacted fruit production and quality. Despite these hurdles, Alico Inc remains optimistic about future production levels, supported by the treatment of citrus trees with Oxytetracycline (OTC) and favorable pricing agreements with Tropicana.
"We remain cautiously optimistic that being another year removed from the hurricane, along with the combination of a second round of injections for previously treated trees and a first round of injections for trees that were not treated in 2023, will show more significant improvements, not just in yield, but also in reduced fruit drop," commented John Kiernan, President and Chief Executive Officer.
Conclusion
While Alico Inc's Q3 2024 earnings reflect the ongoing challenges in the citrus industry, the company's strategic initiatives and strong financial position provide a solid foundation for future growth. Investors will be keen to see how the company leverages its new agreements and recovery efforts to enhance shareholder value in the coming quarters.
Explore the complete 8-K earnings release (here) from Alico Inc for further details.
