Cautionary Note Regarding Forward-Looking Information

This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains certain forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact contained in this Quarterly Report are forward-looking statements, including without limitation, statements regarding future actions, business plans and prospects, prospective products, trends, future performance or results of current and anticipated products, sales efforts, expenses, interest rates, the outcome of contingencies, plans relating to dividends, government regulations, the adequacy of our liquidity to meet our needs for the foreseeable future, our expectations regarding the continued impact of Hurricane Ian, and our expectations regarding market conditions. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as such as “may,” “will,” “could,” “should,” “would,” “believes,” “expects,” “anticipates”, “estimates”, “projects,” “intends,” “plans” or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; harm to our reputation; tax risks associated a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; ESG issues, including those related to climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting; macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel, and the COVID-19 pandemic; system security risks, data protection breaches, cyber-attacks and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends;; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2023 (the “2023 Annual Report on Form 10-K”). Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

As used in this Quarterly Report, unless otherwise specified or the context otherwise requires, references to “we,” “us,” “our,” the “Company” and “Alico” refer to the operations of Alico, Inc. and its consolidated subsidiaries.

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ALICO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

December 31, September 30,
2017 2017
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 948
$ 3,395
Accounts receivable, net 11,875
4,286
Inventories 33,180
36,204
Assets held for sale 18,295
20,983
Prepaid expenses and other current assets 1,985
1,621
Total current assets 66,283
66,489

Property and equipment, net 348,509
349,337
Goodwill 2,246
2,246
Deferred financing costs, net of accumulated amortization 200
262
Other non-current assets 724
848
Total assets $ 417,962
$ 419,182

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,097
$ 3,192
Accrued liabilities 4,551
6,781
Long-term debt, current portion 4,575
4,550
Other current liabilities 1,069
1,460
Total current liabilities 12,292
15,983

Long-term debt:
Principal amount, net of current portion 180,783
181,926
Less: deferred financing costs, net (1,715 ) (1,767 )
Long-term debt less current portion and deferred financing costs, net 179,068
180,159
Lines of credit 7,123
—
Deferred income tax liabilities 14,691
27,108
Deferred gain on sale 26,643
26,440
Deferred retirement obligations 4,109
4,123
Total liabilities 243,926
253,813
Commitments and Contingencies (Note 11)

Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized; none issued —
—
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 and 8,416,145 shares issued and 8,249,357 and 8,238,830 shares outstanding at December 31, 2017 and September 30, 2017, respectively 8,416
8,416
Additional paid in capital 18,890
18,694
Treasury stock, at cost, 166,788 and 177,315 shares held at December 31, 2017 and September 30, 2017, respectively (6,275 ) (6,502 )
Retained earnings 148,285
140,033
Total Alico stockholders' equity 169,316
160,641
Noncontrolling interest 4,720
4,728
Total stockholders' equity 174,036
165,369
Total liabilities and stockholders' equity $ 417,962
$ 419,182


	December 31, 2023		September 30, 2023
	(Unaudited)
ASSETS
Current assets:
Cash	$	18,632	$	1,062
Accounts receivable, net	7,886		712
Inventories	41,804		52,481
Income tax receivable	—		1,200
Assets held for sale	69		1,632
Prepaid expenses and other current assets	3,426		1,718
Total current assets	71,817		58,805
Restricted cash	2,630		2,630
Property and equipment, net	361,603		361,849
Goodwill	2,246		2,246
Other non-current assets	2,913		2,823
Total assets	$	441,209	$	428,353

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,041	$	6,311
Accrued liabilities	3,633		5,363
Current portion of long-term debt	1,410		2,566
Income tax payable	15,552		—
Other current liabilities	904		825
Total current liabilities	28,540		15,065
Long-term debt, net	83,299		101,410
Lines of credit	—		24,722
Deferred income tax liabilities, net	36,410		36,410
Other liabilities	334		369
Total liabilities	148,583		177,976
Commitments and Contingencies (Note 12)
Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized; none issued	—		—
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,616,081 and 7,610,551 shares outstanding at December 31, 2023 and September 30, 2023, respectively	8,416		8,416
Additional paid in capital	20,064		20,045
Treasury stock, at cost, 800,064 and 806,341 shares held at December 31, 2023 and September 30, 2023, respectively	(27,099)		(27,274)
Retained earnings	286,368		243,804
Total Alico stockholders' equity	287,749		244,991
Noncontrolling interest	4,877		5,386
Total stockholders' equity	292,626		250,377
Total liabilities and stockholders' equity	$	441,209	$	428,353

See accompanying notes to the unaudited condensed consolidated financial statements.

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ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share amounts)


	Three Months Ended December 31,
		2023		2022
Operating revenues:
Alico Citrus		$	13,592	$	10,268
Land Management and Other Operations		393		320
Total operating revenues		13,985		10,588
Operating expenses:
Alico Citrus		28,107		14,295
Land Management and Other Operations		133		94
Total operating expenses		28,240		14,389
Gross profit		(14,255)		(3,801)
General and administrative expenses		3,272		2,509
Loss from operations		(17,527)		(6,310)
Other income (expense), net:
Interest income		95		—
Interest expense		(1,605)		(1,148)
Gain on sale of real estate, property and equipment and assets held for sale		77,025		3,189

Total other income (expense), net		75,515		2,041
Income (loss) before income taxes		57,988		(4,269)
Income tax provision (benefit)		15,552		(1,083)
Net income (loss)		42,436		(3,186)
Net loss attributable to noncontrolling interests		509		36
Net income (loss) attributable to Alico, Inc. common stockholders		$	42,945	$	(3,150)
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic		$	5.64	$	(0.41)
Diluted		$	5.64	$	(0.41)
Weighted-average number of common shares outstanding:
Basic		7,616		7,593
Diluted		7,616		7,593

Cash dividends declared per common share		$	0.05	$	0.05

Three Months Ended December 31,
2017 2016
Operating revenues:
Alico Citrus $ 17,079
$ 16,877
Conservation and Environmental Resources 363
301
Other Operations 91
267
Total operating revenues 17,533
17,445
Operating expenses:

Alico Citrus 16,295
14,085
Conservation and Environmental Resources 597
514
Other Operations 59
93
Total operating expenses 16,951
14,692
Gross profit 582
2,753
General and administrative expenses 3,886
3,788
Loss from operations (3,304 ) (1,035 )
Other (expense) income:

Interest expense (2,255 ) (2,327 )
Gain on sale of real estate and property and equipment 1,736
436
Other income (expense), net 144
(90 )
Total other expense, net (375 ) (1,981 )
Loss before income taxes (3,679 ) (3,016 )
Income tax benefit (12,417 ) (1,273 )
Net income (loss) 8,738
(1,743 )
Net loss attributable to noncontrolling interests 8
8
Net income (loss) attributable to Alico, Inc. common stockholders $ 8,746
$ (1,735 )
Per share information attributable to Alico, Inc. common stockholders:
Earnings (loss) per common share:

Basic $ 1.06
$ (0.21 )
Diluted $ 1.05
$ (0.21 )
Weighted-average number of common shares outstanding:

Basic 8,245
8,324
Diluted 8,364
8,324

Cash dividends declared per common share $ 0.06
$ 0.06

See accompanying notes to the unaudited condensed consolidated financial statements.

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ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(in thousands)


	For the Three Months Ended December 31, 2023

	Common stock			Additional Paid In Capital		Treasury Stock			Retained Earnings		Total Alico, Inc. Equity		Non- controlling Interest		Total Equity
	Shares	Amount				Shares	Amount
Balance at September 30, 2023	8,416	$	8,416	$	20,045	806	$	(27,274)	$	243,804	$	244,991	$	5,386	$	250,377
Net income	—	—		—		—	—		42,945		42,945		(509)		42,436
Dividends ($0.05/share)	—	—		—		—	—		(381)		(381)		—		(381)

Stock-based compensation		—		19		(6)	175		—		194		—		194
Balance at December 31, 2023	8,416	$	8,416	$	20,064	800	$	(27,099)	$	286,368	$	287,749	$	4,877	$	292,626


	For the Three Months Ended December 31, 2022

	Common stock			Additional Paid In Capital		Treasury Stock			Retained Earnings		Total Alico, Inc. Equity		Non- controlling Interest		Total Equity
	Shares	Amount				Shares	Amount
Balance at September 30, 2022	8,416	$	8,416	$	19,784	829	$	(27,948)	$	243,490	$	243,742	$	5,123	$	248,865
Net income (loss)	—	—		—		—	—		(3,150)		(3,150)		(36)		(3,186)
Dividends ($0.05/share)	—	—		—		—	—		(380)		(380)		—		(380)

Stock-based compensation	—	—		159		(6)	146		—		305		—		305
Balance at December 31, 2022	8,416	$	8,416	$	19,943	823	$	(27,802)	$	239,960	$	240,517	$	5,087	$	245,604

See accompanying notes to the unaudited condensed consolidated financial statements.

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ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

Three Months Ended December 31,
2017 2016
Net cash used in operating activities:

Net income (loss) $ 8,738
$ (1,743 )
Adjustments to reconcile net income (loss) to net cash used in operating activities:

Deferred gain on sale of sugarcane land (141 ) (300 )
Depreciation, depletion and amortization 3,490
3,916
Deferred income tax benefit (12,417 ) (1,273 )
Gain on sale of property and equipment (1,596 ) (205 )
Non-cash interest expense on deferred gain on sugarcane land 344
356
Stock-based compensation expense 423
440
Other (44 ) 125
Changes in operating assets and liabilities:

Accounts receivable (7,589 ) (7,177 )
Inventories 3,024
(4,053 )
Prepaid expenses and other assets (240 ) (1,579 )
Accounts payable and accrued expenses (3,298 ) (4,823 )
Other liabilities (383 ) (1,121 )
Net cash used in operating activities (9,689 ) (17,437 )

Cash flows from investing activities:

Purchases of property and equipment (3,561 ) (2,357 )
Proceeds from sale of property and equipment 5,300
—
Other —
547
Net cash provided by (used in) investing activities 1,739
(1,810 )

Cash flows from financing activities:

Repayments on revolving lines of credit (10,608 ) (5,000 )
Borrowings on revolving lines of credit 17,731
21,945
Principal payments on term loans (1,118 ) (2,699 )
Dividends paid (494 ) (498 )
Capital lease obligation payments (8 ) —
Net cash provided by financing activities 5,503
13,748

Net decrease in cash and cash equivalents (2,447 ) (5,499 )
Cash and cash equivalents at beginning of the period 3,395
6,625

Cash and cash equivalents at end of the period $ 948
$ 1,126


	Three Months Ended December 31,
	2023		2022
Net cash used in operating activities:
Net income (loss)	$	42,436	$	(3,186)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion and amortization	3,804		3,950
Amortization of debt issue costs	120		36
Gain on sale of real estate, property and equipment and assets held for sale	(77,025)		(3,189)
Loss on disposal of long-lived assets	225		1,915
Inventory net realizable value adjustment	10,846		—

Stock-based compensation expense	194		305
Other	36		8
Changes in operating assets and liabilities:
Accounts receivable	(7,174)		(4,045)
Inventories	(169)		(1,316)
Prepaid expenses	(1,708)		(122)
Income tax receivable	1,200		(1,083)
Other assets	2		108
Accounts payable and accrued liabilities	(1,320)		(2,822)
Income taxes payable	15,552		—
Other liabilities	(188)		(224)
Net cash used in operating activities	(13,169)		(9,665)

Cash flows from investing activities:
Purchases of property and equipment	(3,490)		(3,453)
Acquisition of citrus groves	—		(29)
Net proceeds from sale of real estate, property and equipment and assets held for sale	79,090		3,287

Change in deposits on purchase of citrus trees	(375)		(301)
Net cash provided by (used in) investing activities	75,225		(496)

Cash flows from financing activities:
Repayments on revolving lines of credit	(44,032)		(8,902)
Borrowings on revolving lines of credit	19,310		23,019
Principal payments on term loans	(19,383)		(759)


Dividends paid	(381)		(3,793)
Net cash (used in) provided by financing activities	(44,486)		9,565

Net increase (decrease) in cash and restricted cash	17,570		(596)
Cash and restricted cash at beginning of the period	3,692		865

Cash and restricted cash at end of the period	$	21,262	$	269


Non-cash investing activities:
Assets received in exchange for services	$	298	$	—
Trees delivered in exchange for prior services	$	176	$	—

See accompanying notes to the unaudited condensed consolidated financial statements.

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ALICO, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Dollars in thousands, except per share and per acre amounts)

Note 1. Description of Business and Basis of Presentation

Description of Business

Alico, Inc. ~~(“Alico”)~~, together with its subsidiaries (collectively, “Alico”, the ~~“Company"~~“Company”, ~~"we"~~“we”, ~~"us"~~“us” or ~~"our”~~“our”), is a Florida agribusiness and land management company owning approximately ~~122,000~~54,000 acres of land and also mineral rights throughout ~~Florida, including approximately 90,000~~Florida. Alico holds these mineral rights on substantially all its owned acres, ofwith additional mineral ~~rights.~~rights on other acres. The Company manages its land based upon its primary usage, and reviews its performance based upon two primary ~~classifications -~~classifications: (i) Alico Citrus and ~~Conservation~~(ii) Land Management and ~~Environmental Resources.~~Other Operations. Financial results are presented based upon ~~its three~~these two business ~~segments (Alico Citrus, Conservation and Environmental Resources and Other Operations).~~

segments.

Basis of Presentation

The ~~Company has prepared the accompanying financial statements on a condensed consolidated basis. These~~ accompanying unaudited condensed consolidated ~~interim~~ financial statements, which are referred to herein as the “Financial ~~Statements"~~Statements”, of Alico have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, these Financial Statements do not include all of the disclosures required for complete annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to Article 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. These Financial Statements do not include all of the disclosures required for complete annual financial statements and, accordingly, certain information, footnotes and disclosures normally included in annual financial statements, prepared in accordance with U.S. GAAP, have been condensed or omitted in accordance with SEC rules and regulations. Accordingly, the. As such, these Financial Statements should be read in conjunction with the Company's audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the ~~fiscal~~ year ended September 30, ~~2017,~~2023, as filed with the SEC on December ~~11, 2017.~~6, 2023 (the “2023 Annual Report on Form 10-K”).

~~The Financial Statements~~Operating results for the interim periods presented ~~in this Form 10-Q~~ are ~~unaudited.~~not necessarily indicative of the results that may be expected for the full year. However, in the opinion of management, such Financial Statements include all adjustments, consisting solely of normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods. Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

~~Operating~~Seasonality

The Company is primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of Alico's fiscal year produce most of the Company's annual revenue. Working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. Because of the seasonality of the business, results for ~~the interim periods presented~~any quarter are not necessarily indicative of the results that may be ~~expected~~achieved for the full fiscal year.

Note 2. Summary of Significant Accounting Policies

The Company’s significant accounting policies are fully described in Note 2 – Summary of Significant Accounting Policies in our 2023 Annual Report on Form 10-K.

Revenue Recognition

The Company recognizes revenue under ASC 606. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

•Step 1: Identify the contract with the customer

•Step 2: Identify the performance obligations in the contract

•Step 3: Determine the transaction price

•Step 4: Allocate the transaction price to the performance obligations in the contract

•Step 5: Recognize revenue when the company satisfies a performance obligation

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Revenues are derived from the sale of processed fruit, fresh fruit, other citrus revenue, revenues from grove management services, leasing revenue and other resource revenues. Most of the revenue is generated from the sale of citrus fruit to processing facilities, fresh fruit sales and grove management services.

For fruit sales, the Company recognizes revenue in the amount it expects to be entitled to be paid, determined when control of the products or services is transferred to its customers, which occurs upon delivery of and acceptance of the fruit by the customer and when the Company has a right to payment.

For the sale of fruit, the Company has identified one performance obligation, which is the delivery of fruit to the processing facility of the customer (or harvesting of the citrus in the case of fresh fruit) for each separate variety of fruit identified in the respective contract with the respective customer. The Company initially recognizes revenue in an amount which is estimated based on contractual and market prices, if such market price falls within the range (known as “floor” and “ceiling” prices) identified in the specific respective contracts. Additionally, the Company also has a contractual agreement whereby revenue is determined based on applying a cost-plus structure methodology. As such, since all these contracts contain elements of variable consideration, the Company recognizes this variable consideration by using the expected value method. On a quarterly basis, management reviews the reasonableness of the revenues accrued based on buyers’ and processors’ advances to growers, cash and futures markets and experience in the industry. Adjustments are made throughout the year to these estimates as more current ~~fiscal~~relevant industry information becomes available. Differences between the estimates and the final realization of revenues at the close of the harvesting season can result in either an increase or decrease to reported revenues. For the three months ended December 31, 2023 and 2022, the Company recognized revenues of $12,901 and $10,079, respectively, at a point in time. For the three months ended December 31, 2023 and 2022, the Company recognized revenues of $1,084 and $509, respectively, over time.

Receivables under contracts, whereby pricing is based on contractual and market prices, are primarily paid at the floor amount and are collected within seven days after the harvest week. Any adjustments to pricing as a result of changes in market prices are generally collected or paid thirty to sixty days after final market pricing is published. Receivables under those contracts where pricing is based off a cost-plus structure methodology are paid at the final prior year ~~ending~~rate. Any adjustments to pricing because of the cost-plus calculation are collected or paid upon finalization of the calculation and agreement by both parties. As of December 31, 2023, and September 30, ~~2018. All intercompany transactions~~2023, the Company had total receivables relating to sales of citrus of $7,134 and ~~account balances between~~$394, respectively, recorded in Accounts Receivable, net, in the ~~consolidated businesses~~Condensed Consolidated Balance Sheets.

For grove management services, the Company has identified one performance obligation, which is the management of the third party’s groves. Grove management services include caretaking of the citrus groves, harvesting and hauling of citrus, management and coordination of citrus sales and other related activities. The Company is reimbursed for expenses incurred in the execution of its management duties and the Company receives a per acre management fee. The Company recognizes operating revenue, including a management fee, and corresponding operating expenses when such services are rendered and consumed.

The Company recorded $691 and $189 of operating revenue relating to these grove management services, including the management fee, in the three months ended December 31, 2023 and 2022, respectively, for this group of third-party grove owners noted above. The Company recorded $368 and $67 of operating expenses relating to these grove management services in the three months ended December 31, 2023 and 2022, respectively, for this group of third-party grove owners noted above.

Disaggregated Revenue

Revenues disaggregated by significant products and services for the three months ended December 31, 2023 and 2022 are as follows:

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(in thousands)	Three Months Ended December 31,
		2023		2022
Alico Citrus
Early and Mid-Season		$	12,395	$	9,586

Fresh Fruit and Other		506		493
Grove Management Services		691		189
Total		$	13,592	$	10,268

Land Management and Other Operations
Land and Other Leasing		$	314	$	281
Other		79		39
Total		$	393	$	320

Total Revenues		$	13,985	$	10,588

Fair Value Measurements

The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability into a three tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

•Level 1 – Observable inputs such as quoted market prices for identical assets and liabilities in active markets;

•Level 2 – Inputs, other than the quoted prices for identical assets and liabilities in active markets, for which significant other observable market inputs are readily available; and

•Level 3 – Unobservable inputs in which there is little or no market data, such as internally developed valuation models which require the reporting entity to develop its own assumptions.

The carrying amounts of the Company’s financial instruments, including cash, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short term and immediate nature of these financial instruments. The carrying amounts and estimated fair values (Level 2) of debt instruments are as follows:


(in thousands)	December 31, 2023				September 30, 2023
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Corporate debt
Current long-term debt	$	1,410	$	1,388	$	2,566	$	2,325
Long-term debt	$	83,805	$	77,015	$	126,753	$	115,851

As of December 31, 2023 and September 30, 2023 the Company did not have any assets held for sale that had been ~~eliminated.~~measured at fair value on a non-recurring basis.

Accounting for government grants

The Company recognizes government grants when there is reasonable assurance that: (1) the grant will be received and (2) all conditions will be met. For income-based grants, the Company recognizes the income on a systemic basis over the periods in which we recognize as expense the related costs for which the grant was intended to compensate.

On December 31, 2023, the Company recognized $1,805 of grant money from the Citrus Research and Field Trial Foundation’s (“CRAFT”) program to assist citrus growers in the State of Florida using Oxytetracycline (“OTC”) and other

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approved therapies to combat the effect of “greening” of their citrus trees. These funds were recognized as a component of Inventories ($1,381 at December 31, 2023) on the Company’s Condensed Consolidated Balance Sheet and will be recognized as a reduction of Operating expenses ($424 during the three months ended December 31, 2023) on its Condensed Consolidated Statement of Operations, as its fruit is sold; in order to align it to the period over which the expense related to the OTC treatments is recognized. These grant monies were received in exchange for providing certain historical data to the CRAFT Foundation about its citrus groves. The Company may continue, but is not obligated, to participate in future CRAFT programs on the effects of the use of OTC on its Citrus Trees. In January 2024, the Company collected these grant monies from CRAFT.

Concentrations

Accounts receivable from the Company’s major customer as of December 31, 2023 and September 30, 2023, and revenue from such customer as of December 31, 2023 and 2022, are as follows:


(in thousands)	Accounts Receivable				Revenue				% of Total Revenue
	December 31,		September 30,		December 31,				December 31,
	2023		2023		2023		2022		2023		2022
Tropicana	$	5,048	$	—	$	10,875	$	8,027	77.8	%	75.8	%

The citrus industry is subject to various factors over which growers have limited or no control, including weather conditions, disease, pestilence, water supply and market price fluctuations. Market prices are highly sensitive to aggregate domestic and foreign crop sizes, as well as factors including, but not limited to, weather and competition from foreign countries.

The overall increase in Tropicana revenue, as a percentage of sales, was primarily due to an increase in processed fruit sales during the current quarter.

Segments

Operating segments are defined in the criteria established under the Financial Accounting Standards Board -– Accounting Standards Codification (“FASB ASC”) Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. The Company’s CODM assesses performance and allocates resources based on ~~three~~two operating segments: (i) Alico Citrus ~~(formerly Orange Co.), Conservation~~ and ~~Environmental Resources~~(ii) Land Management and Other Operations.

Principles of Consolidation

The Financial Statements include the accounts of Alico ~~Inc.~~ and the accounts of all the subsidiaries in which a controlling interest is held by the Company. Under U.S. GAAP, consolidation is generally required for investments of more than 50% of the outstanding voting stock of an investee, except when control is not held by the majority owner. The Company’s subsidiaries include: Alico Land Development, Inc., Alico-Agri, Ltd., Alico Plant World, LLC, Alico Fruit Company, LLC, Alico Citrus Nursery, LLC, Alico Chemical Sales, LLC, Alico Ranch, LLC, Alico Natural Resources, LLC, 734 Citrus Holdings 1, LLC and subsidiaries ~~Alico Fresh Fruit LLC,~~(“Silver Nip”), Alico Skink Mitigation, LLC and Citree Holdings 1, ~~LLC.~~LLC (“Citree”). The Company considers the criteria established under FASB ASC Topic 810, “Consolidations”in its consolidation process. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the date of the accompanying Financial Statements, the disclosure of contingent assets and liabilities in the Financial Statements and the accompanying Notes, and the reported amounts of revenues and expenses and cash flows during the periods presented. Actual results could differ from those ~~estimates based upon future events.~~estimates. The Company evaluates estimates on an ongoing basis. The estimates are based on current and expected economic conditions, historical experience, the experience and judgment of the Company’s management and various other specific

assumptions that the Company believes to be reasonable. ~~The Company evaluates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations.~~

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Noncontrolling Interest in Consolidated Subsidiary

The Financial Statements include all assets and liabilities of the less-than-100%-owned subsidiary the Company controls, ~~Citree Holdings I, LLC (“Citree”).~~Citree. Accordingly, the Company has recorded a noncontrolling interest in the equity of such entity. Citree had a loss of $1,039 and a net loss of ~~$16,219 and $15,848~~$73 for the three months ended December 31, ~~2017~~2023 and ~~2016,~~2022, respectively, of which 51% is attributable to the Company.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standard Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” as a new ASC topic (Topic 606). The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU further provides guidance for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, lease contracts). The FASB subsequently issued ASU 2015-14 to defer the effective date of ASU 2014-09 until annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with earlier adoption permitted. The FASB also recently issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," and 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," that clarify or amend the original Topic 606. ASU 2014-09 can be adopted using one of two retrospective transition methods: 1) retrospectively to each prior reporting period presented or 2) as a cumulative-effect adjustment as of the date of adoption. The Company has reviewed other recently issued accounting standards which have not yet ~~selected a transition method and is currently evaluating the impact of ASU 2014-09~~been adopted to determine their potential effect, if any, on the ~~Company’s Financial Statements upon adoption.~~

~~Seasonality~~

The Company is primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of our fiscal year generally produce the majority of our annual revenue, and working capital requirements are typically greater in the first and fourth quarters of the fiscal year. The results of operations or financial condition. Based on the ~~reported periods herein are~~review of these other recently issued standards, the Company does not ~~necessarily indicative~~currently believe that any of ~~the~~those accounting pronouncements will have a significant effect on its current or future financial position, results ~~for any other interim periods~~of operations, cash flows or ~~the entire fiscal year.~~disclosures.

Recently Adopted Accounting Pronouncements

None this period.

Note 2.3. Inventories

Inventories consist of the following at December 31, ~~2017~~2023 and September 30, ~~2017:~~2023:


(in thousands)	December 31,		September 30,		(in thousands)	December 31, 2023	September 30, 2023
	2017		2017
Unharvested fruit crop on the trees	$	29,551	$	32,145
Beef cattle	2,254		1,954
Unharvested fruit crop on the trees
Unharvested fruit crop on the trees
Other	1,375		2,105
Total inventories	$	33,180	$	36,204

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Note 3.4. Assets Held for Sale

~~During fiscal 2017, in~~In accordance with its strategy to dispose of non-core and under-performing assets, the following assets have been classified as assets held for sale ~~as of~~at December 31, ~~2017~~2023 and September 30, ~~2017:~~2023:


(in thousands)	Carrying Value
	December 31, 2023		September 30, 2023
Ranch	$	69	$	1,632
Total assets held for sale	$	69	$	1,632

(in thousands) Carrying Value
December 31, September 30,
2017 2017
Office Building $ —
$ 3,214
Nursery - Gainsville 6,500
6,500
Chancey Bay 4,179
4,179
Gal Hog 70
70
Breeding Herd 6,133
5,858
Winterhaven 251
—
Trailers 1,162
1,162
Total Assets Held For Sale $ 18,295
$ 20.983
During the three months ended December 31, 2023, the Company consummated the sale of approximately 17,556 acres of land for $79,090 and recognized a gain of $77,025, including 17,229 acres of the Alico Ranch to the State of Florida for $77,631 in gross proceeds. A portion of the proceeds from these sales was used to repay the outstanding balance on the Company’s working capital line of credit (“WCLC”) with Rabo Agrifinance, Inc. (“Rabo”) and the $19,094 Met Life Variable-Rate Term Loans, plus accrued interest.

~~On October 30, 2017,~~During the three months ended December 31, 2022, the Company sold ~~its corporate office building in Fort Myers, Florida for $5,300,000 and realized a gain of~~ approximately ~~$1,800,000. The sales agreement provides that the Company will lease back a portion of the office space for five years.~~

~~Negotiations with interested~~609 acres to various third parties for ~~certain assets held~~$3,287 and recognized a gain of $3,189 (including approximately 85 acres to Mr. John E. Kiernan, the Company’s President and CEO, on October 20, 2022, for $439 ($5,161 per acre)). See Note 13. “Related Party Transactions” for further information.

Unless otherwise noted above, during the three months ended December 31, 2023 and December 31, 2022, the proceeds from the sale ~~have already taken place, and in January, 2018 the Company sold its breeding herd and a portion~~ of ~~their trailers (See Note 13). Assets held~~land were used for ~~sale consists solely of property and equipment.~~general corporate purposes.

~~The Company recorded an impairment loss of approximately $4,131,000 during fiscal year 2017 on these assets classified as assets held for sale.~~

Note 4.5. Property and Equipment, Net

Property and equipment, net consists of the following at December 31, ~~2017~~2023 and September 30, ~~2017:~~2023:


(in thousands)	December 31, 2023		September 30, 2023

Citrus trees	$	330,957	$	328,421
Equipment and other facilities	57,796		57,779
Buildings and improvements	7,081		7,081
Total depreciable properties	395,834		393,281
Less: accumulated depreciation and depletion	(147,204)		(144,150)
Net depreciable properties	248,630		249,131
Land and land improvements	112,973		112,718
Property and equipment, net	$	361,603	$	361,849

For the three months ended December 31, 2023 and December 31, 2022, the Company recognized a loss on the disposal of property and equipment of $225 and $1,915, respectively, due to tree clippings.

(in thousands) December 31, September 30,
2017 2017
Citrus trees $ 261,286
$ 258,949
Equipment and other facilities 54,840
54,592
Buildings and improvements 8,279
8,835
Total depreciable properties 324,405
322,376
Less: accumulated depreciation and depletion (85,498 ) (82,443 )
Net depreciable properties 238,907
239,933
Land and land improvements 109,602
109,404
Net property and equipment $ 348,509
$ 349,337

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~~Note 5. Long-Term Debt and Lines of Credit~~

~~Debt Refinancing~~

The Company refinanced its outstanding debt obligations on December 3, 2014 in connection with the Orange-Co acquisition. These credit facilities initially included $125,000,000 in fixed interest rate term loans (“Met Fixed-Rate Term Loans”), $57,500,000 in variable interest rate term loans (“Met Variable-Rate Term Loans”), and a $25,000,000 revolving line of credit (“RLOC”) with Metropolitan Life Insurance Company and New England Life Insurance Company (collectively “Met”), and a $70,000,000 working capital line of credit (“WCLC”) with Rabo Agrifinance, Inc. (“Rabo”).

The term loans and RLOC are secured by real property. The security for the term loans and RLOC consists of approximately 38,200 gross acres of citrus groves and 5,762 gross acres of ranch land. The WCLC is collateralized by the Company’s current assets and certain other personal property owned by the Company.

The term loans, collectively, are subject to quarterly principal payments of $2,281,250, and mature November 1, 2029. The Met Fixed-Rate Term Loans bear interest at 4.15% per annum, and the Met Variable-Rate Term Loans bear interest at a rate equal to 90 day LIBOR plus 150 basis points (the “LIBOR spread”). The LIBOR spread is subject to adjustment by the lender on May 1, 2019 and every two years thereafter until maturity. Interest on the term loans is payable quarterly.

~~The interest rates on the Met Variable-Rate Term Loans were 3.03% per annum and 2.96% per annum as of December 31, 2017 and September 30, 2017, respectively.~~

The Company may prepay up to $8,750,000 of the Met Fixed-Rate Term Loan principal annually without penalty, and any such prepayments may be applied to reduce subsequent mandatory principal payments. The maximum annual prepayment was made for calendar year 2015 and remains available to reduce future mandatory principal payments should the Company elect to do so. During the first quarter of fiscal 2018, the company elected not to make its principal payment and utilized its prepayment to satisfy its payment requirement. The Met Variable-Rate Term Loans may be prepaid without penalty.

The RLOC bears interest at a floating rate equal to 90 day LIBOR plus 150 basis points, payable quarterly. The LIBOR spread was adjusted by the lender on May 1, 2017 and is subject to further adjustment every two years thereafter. Outstanding principal, if any, is due at maturity on November 1, 2019. The RLOC is subject to an annual commitment fee of 25 basis points on the unused portion of the line of credit. The RLOC is available for funding general corporate needs. The variable interest rate was 3.03% and 2.96% per annum as of December 31, 2017 and September 30, 2017, respectively. Availability under the RLOC was $25,000,000 as of December 31, 2017.

The WCLC is a revolving credit facility and is available for funding working capital and general corporate requirements. The interest rate on the WCLC is based on the one month LIBOR, plus a spread, which is adjusted quarterly, based on the Company's debt service coverage ratio for the preceding quarter and can vary from 175 to 250 basis points. The rate is currently at LIBOR plus 175 basis points. The variable interest rate was 3.11% per annum and 2.99% per annum as of December 31, 2017 and September 30, 2017, respectively. The WCLC agreement was amended on September 30, 2017, and the primary terms of the amendment were an extension of the maturity to November 1, 2019. There were no changes to the commitment amount or interest rate. Availability under the WCLC was approximately $52,577,000 as of December 31, 2017 and September 30, 2017, respectively.

The WCLC is subject to a quarterly commitment fee on the daily unused availability under the line computed as the commitment amount less the aggregate of the outstanding loans and outstanding letters of credit. The commitment fee is adjusted quarterly based on Alico's debt service coverage ratio for the preceding quarter and can vary from a minimum of 20 basis points to a maximum of 30 basis points. Commitment fees to date have been charged at 20 basis points.

The outstanding balance on the WCLC was approximately $7,123,000 at December 31, 2017. The WCLC agreement provides for Rabo to issue up to $20,000,000 in letters of credit on the Company’s behalf. As of December 31, 2017, there was approximately $10,300,000 in outstanding letters of credit, which correspondingly reduced the Company's availability under the line of credit.

These credit facilities noted above are subject to various covenants including the following financial covenants: (i) minimum debt service coverage ratio of 1.10 to 1.00, (ii) tangible net worth of at least $160,000,000 increased annually by 10% of consolidated net income for the preceding year, or approximately $162,300,000 for the year ending September 30, 2017, (iii) minimum current ratio of 1.50 to 1.00, (iv) debt to total assets ratio not greater than .625 to 1.00, and, solely in the case of the WCLC, (v) a limit on capital expenditures of $30,000,000 per fiscal year. As of December 31, 2017, the Company was in compliance with all of the financial covenants.

The credit facilities also include a Met Life term loan collateralized by real estate owned by Citree (“Met Citree Loan”). This is a $5,000,000 credit facility that bears interest at a fixed rate of 5.28% per annum. An initial advance of $500,000 was made at closing on March 4, 2014. The loan agreement was amended to provide for an interim advance of $2,000,000 on September 17, 2015, and the interest rate was adjusted to 5.30% per annum at the time of the interim advance. The final $2,500,000 advance was funded on April 27, 2016 and the interest rate was adjusted to 5.28%. Principal payments on this term loan commence February 1, 2018 and are payable quarterly thereafter. The loan matures February 2029.

~~Silver Nip Citrus Debt~~

There are two fixed-rate term loans, with an original combined balance of $27,550,000, bearing interest at 5.35% per annum (“Pru Loans A & B”). Principal of $290,000 is payable quarterly, together with accrued interest. The Company may prepay up to $5,000,000 of principal without penalty. On February 15, 2015, Silver Nip Citrus made a prepayment of $750,000. The loans are collateralized by real estate in Collier, Hardee, Highlands, Martin, Osceola and Polk Counties, Florida and mature June 1, 2033.

Silver Nip Citrus entered into two additional fixed-rate term loans with Prudential to finance the acquisition of a 1,500 acre citrus grove on September 4, 2014. Each loan was in the original amount of $5,500,000. Principal of $55,000 per loan is payable quarterly, together with accrued interest. One loan bears interest at 3.85% per annum (“Pru Loan E”), while the other bears interest at 3.45% per annum (“Pru Loan F”). The interest rate on Pru Loan E is subject to adjustment on September 1, 2019 and every year thereafter until maturity. Both loans are collateralized by real estate in Charlotte County, Florida. Pru Note E matures September 1, 2021, and Pru Note F matures September 1, 2039.

The Silver Nip Citrus credit agreements were amended on December 1, 2016. The primary terms of the amendments were (1) the Company provided a limited $8,000,000 guaranty of the Silver Nip debt, (2) the limited personal guarantees provided by George Brokaw, Remy Trafelet and Clayton Wilson prior to the Company’s merger with Silver Nip Citrus, and also totaling $8,000,000, were released and (3) the consolidated current ratio covenant requirement was reduced from 1.50 to 1.00 to 1.00 to 1:00. Silver Nip Citrus was in compliance with the current ratio covenant as of December 31, 2017, the most recent measurement date.

~~Other Modifications of Rabo and Prudential Credit Agreements~~

In February 2015, Rabo agreed, subject to certain conditions, that the Company may loan Silver Nip Citrus up to $7,000,000 on a revolving basis for cash management purposes. These advances would be funded from either cash on hand or draws on the Company’s WCLC.

~~Silver Nip Citrus has provided a $7,000,000 limited guaranty and security agreement granting Rabo a security interest in crops, accounts receivable, inventory and certain other assets.~~

~~This modification required the amendment of various Prudential and Rabo loan documents and mortgages.~~

~~The following table summarizes long-term debt and related deferred financing costs net of accumulated amortization at December 31, 2017 and September 30, 2017:~~

December 31, 2017 September 30, 2017
Principal Deferred Financing Costs, Net Principal Deferred Financing Costs, Net
(in thousands)

Long-term debt, net of current portion:
Met Fixed-Rate Term Loans $ 99,062
$ 924
$ 99,062
$ 954
Met Variable-Rate Term Loans 48,876
425
49,594
439
Met Citree Term Loan 5,000
48
5,000
49
Pru Loans A & B 22,740
253
23,030
258
Pru Loan E 4,840
23
4,895
25
Pru Loan F 4,840
42
4,895
42
185,358
1,715
186,476
1,767
Less current portion 4,575
—
4,550
—
Long-term debt $ 180,783
$ 1,715
$ 181,926
$ 1,767

~~The following table summarizes lines of credit and related deferred financing costs net of accumulated amortization at December 31, 2017 and September 30, 2017:~~

December 31, 2017 September 30, 2017
Principal Deferred Financing Costs, Net Principal Deferred Financing Costs, Net
(in thousands)

Lines of Credit:
RLOC $ —
$ 96
$ —
$ 109
WCLC 7,123
104
—
153
Lines of Credit $ 7,123
$ 200
$ —
$ 262

~~Future maturities of long-term debt and lines of credit as of December 31, 2017 are as follows:~~

(in thousands)

Due within one year $ 4,575
Due between one and two years 15,548
Due between two and three years 10,975
Due between three and four years 14,935
Due between four and five years 10,755
Due beyond five years 135,693

Total future maturities $ 192,481

~~Interest costs expensed and capitalized were as follows:~~

(in thousands)
Three Months Ended December 31,
2017 2016
Interest expense $ 2,255
$ 2,327
Interest capitalized 134
63
Total $ 2,389
$ 2,390

Note 6. Accrued Liabilities

Accrued ~~Liabilities~~liabilities consist of the following at December 31, ~~2017~~2023 and September 30, ~~2017:~~2023:


(in thousands)	December 31, 2023		September 30, 2023

Accrued employee wages and benefits	$	1,149	$	1,007
Accrued interest	765		1,102
Accrued insurance	684		345
Professional fees	443		307
Accrued dividends	381		381
Other accrued liabilities	211		87
Ad valorem taxes	—		2,134
Total accrued liabilities	$	3,633	$	5,363

(in thousands) December 31, September 30,
2017 2017

Ad valorem taxes $ —
$ 2,648
Accrued interest 1,203
1,165
Accrued employee wages and benefits 1,169
1,320
Accrued dividends 494
494
Current portion of deferred retirement obligations 315
315
Accrued insurance 266
166
Other accrued liabilities 1,104
673
Total accrued liabilities $ 4,551
$ 6,781

~~Note 7.Income Taxes~~

On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act contains significant changes to corporate taxes, including a permanent reduction of the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The Company’s statutory rate for fiscal year ended September 30, 2018 will be 24.5%, based on a fiscal year blended rate calculation. The 21% U.S. corporate tax rate will apply to fiscal years ending September 30, 2019 and each year thereafter.

Additionally, the Act requires a one-time remeasurement of certain tax related assets and liabilities. During the first quarter ended December 31, 2017, the Company made certain estimates related to the impact of the Act including the remeasurement of deferred taxes at the new expected tax rate and a revised effective tax rate for the year ended September 30, 2018, which was used to compute current tax expense for the first quarter ended December 31, 2017. The amounts recorded in the three months ended December 31, 2017 for the remeasurement of deferred tax liabilities principally relate to the reduction in the U.S. corporate income tax rate. The Company has recorded a tax benefit of approximately $11,300,000 to account for these deferred tax impacts.

~~Note 8. Earnings Per Common Share~~

Basic earnings per share for Alico's common stock is calculated by dividing net income attributable to Alico, Inc. common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per common share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of common shares issuable under equity-based compensation plans in accordance with the treasury stock method, except where the inclusion of such common shares would have an anti-dilutive impact.

~~For the three months ended December 31, 2017 and 2016, basic and diluted earnings per common share were as follows:~~

(in thousands except per share amounts)
Three Months Ended December 31,
2017 2016

Net income (loss) attributable to Alico, Inc. common stockholders $ 8,746
$ (1,735 )

Weighted average number of common shares outstanding - basic 8,245
8,324
Dilutive effect of equity-based awards 119
—
Weighted average number of common shares outstanding - diluted 8,364
8,324

Net income (loss) per common shares attributable to Alico, Inc. common stockholders:
Basic $ 1.06
$ (0.21 )
Diluted $ 1.05
$ (0.21 )

The computation of diluted earnings per common share for the three months ended December 31, 2017 includes the impact of certain equity awards because they are dilutive. Such awards are comprised of 750,000 stock options granted to Executive Officers (see Note 12. "Related Party Transactions") during the three months ended December 31, 2016.

Note 7. Long-Term Debt and Lines of Credit

The following table summarizes long-term debt and related deferred financing costs, net of accumulated amortization at December 31, 2023 and September 30, 2023:


(in thousands)	December 31, 2023		September 30, 2023
Long-term debt, net of current portion:
Met Fixed-Rate Term Loans	$	70,000	$	70,000
Met Variable-Rate Term Loans	—		19,094
Met Citree Term Loan	3,888		3,888
Pru Loans A & B	11,327		11,615
Deferred financing fees	(506)		(621)
	84,709		103,976
Less current portion	1,410		2,566
Long-term debt	$	83,299	$	101,410

The following table summarizes lines of credit and related deferred financing costs, net of accumulated amortization at December 31, 2023 and September 30, 2023:


(in thousands)	December 31, 2023		September 30, 2023
Lines of Credit:
RLOC	$	—	$	—
WCLC	—		24,722
Deferred financing fees	(91)		(95)
Lines of Credit	$	(91)	$	24,627

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Future maturities of long-term debt and lines of credit as of December 31, 2023 are as follows:


(in thousands)	December 31, 2023
Due within one year	$	1,410
Due between one and two years	1,410
Due between two and three years	1,410
Due between three and four years	1,410
Due between four and five years	1,410
Due beyond five years	78,165

Total future maturities	$	85,215

Interest costs expensed and capitalized were as follows:


(in thousands)	Three Months Ended December 31,
		2023		2022
Interest expense		$	1,605	$	1,148
Interest capitalized		303		281
Total		$	1,908	$	1,429

Debt

The Company’s credit facilities consist of fixed interest rate term loans originally in the amount of $125,000 (“Met Fixed-Rate Term Loans”) variable interest rate term loans originally in the amount of $57,500 (“Met Variable-Rate Term Loans”), a $25,000 revolving line of credit (“RLOC”) with Metropolitan Life Insurance Company and New England Life Insurance Company (collectively “Met”), and a $70,000 WCLC with Rabo. At December 31, 2023 and September 30, 2023, $25,000 and $25,000 was available under the RLOC, respectively, and $69,752 and $45,030 was available under the WCLC, respectively.

The term loans and RLOC are secured by real property. The security for the term loans and RLOC consists of approximately 38,200 gross acres of citrus groves and originally included 5,800 gross acres of ranch land. In April 2021, the 5,800 gross acres of ranch land was released as security against the term loans and RLOC and only the 38,200 gross acres of citrus groves remain as security for the term loans and RLOC. The WCLC is collateralized by the Company’s current assets and certain other personal property owned by the Company.

The Met Fixed-Rate Term Loans bear, which bear interest at 3.85%, are interest-only with a balloon payment at maturity on November 1, 2029.

The Met Variable-Rate Term Loans are subject to quarterly principal payments of $406 and bear interest at the One Month Term Secured Overnight Financing Rate ("SOFR") plus 175 basis points (the “SOFR spread”). Effective February 17, 2023, the Company agreed to defer the next three quarterly principal payments which were previously due May 2023, August 2023 and November 2023 to the maturity date of the loan. The SOFR spread is subject to adjustment by Met every 2 years beginning May 1, 2023, until maturity. Interest on the term loans is payable quarterly. The interest rates on the Met Variable-Rate Term Loans were 7.56% per annum and 7.52% per annum, as of December 31, 2023 and September 30, 2023, respectively and were set to mature on November 1, 2029. On December 26, 2023, the Company repaid the outstanding balance of $19,094, plus accrued interest, on these loans.

The SOFR spread is subject to adjustment by lender every 2 years beginning May 1, 2023, until maturity on November 1, 2029. The RLOC is subject to an annual commitment fee of 25 basis points on the unused portion of the line of credit and is available for funding general corporate purposes. The variable interest rate was 7.56% per annum and 7.52% per annum as of December 31, 2023 and September 30, 2023, respectively.

Table of Contents

The WCLC is a revolving credit facility and is available for funding working capital and general corporate requirements. The WCLC agreement was amended on October 27, 2022, and the primary terms of the amendment were an extension of the maturity to November 1, 2025, and the conversion of the interest rate from LIBOR plus a spread to SOFR plus a spread, which spread is adjusted quarterly, based on the Company’s debt service coverage ratio for the preceding quarter and can vary from 175 to 250 basis points. There were no changes to the commitment amount. The rate at September 30, 2023 was SOFR plus 175 basis points. The variable interest rate was 7.11% per annum and 7.07% per annum as of December 31, 2023 and September 30, 2023, respectively. The WCLC agreement provides for Rabo to issue up to $2,000 in letters of credit on the Company’s behalf, of which $248 and $248 were issued as of December 31, 2023 and September 30, 2023, respectively.

The WCLC is subject to a quarterly commitment fee on the daily unused availability under the line computed as the commitment amount less the aggregate of the outstanding loans and outstanding letters of credit. The commitment fee is adjusted quarterly based on The Company's debt service coverage ratio for the preceding quarter and can vary from a minimum of 20 basis points to a maximum of 30 basis points. Commitment fees were charged at 20 basis points; except from May 18, 2023 through August 8, 2023, when they were charged at 30 basis points.

These credit facilities noted above are subject to various covenants including the following financial covenants: (i) minimum debt service coverage ratio of 1.10 to 1.00; (ii) tangible net worth of at least $160,000 increased annually by 10% of consolidated net income for the preceding years, or $174,628 for the year ended September 30, 2023; (iii) minimum current ratio of 1.50 to 1.00; (iv) debt to total assets ratio not greater than .625 to 1.00, and; (v) solely in the case of the WCLC, a limit on capital expenditures of $30,000 per fiscal year. As of December 31, 2023, the Company was in compliance with all of the financial covenants.

Credit facilities also include a Met Life term loan collateralized by 1,200 gross acres of citrus grove owned by Citree (“Met Citree Loan”). This is a $5,000 credit facility that bears interest at a fixed rate of 5.28% per annum. Principal and interest payments are made on a quarterly basis. Effective February 17, 2023, the Company agreed to defer the next three quarterly principal payments which were previously due May 2023, August 2023 and November 2023 to the maturity date of the loan. The loan matures in February 2029.

Silver Nip Citrus Debt

There are two fixed-rate term loans, with an original combined balance of $27,550, which bear interest at 5.35% per annum (“Pru Loans A & B”). Principal of $290 is payable quarterly, together with accrued interest. The loans are collateralized by 5,700 acres of citrus groves in Collier, Hardee, Highlands and Polk Counties, Florida and mature on June 1, 2029 and June 1, 2033, respectively.

The Pru Loans A & B are subject to an annual financial covenant whereby the consolidated current ratio requirement is 1.00 to 1.00. Silver Nip Citrus was in compliance with the current ratio covenant as of December 31, 2023.

Deferred Financing Costs

Costs incurred to obtain financing are deferred and amortized to “Interest expense” in the consolidated statement of operations over the related financing period using the effective interest method. The Company records debt issuance costs as a direct reduction of the carrying value of the related debt. Financing costs related to the undrawn RLOC are included in "Other non-current assets" in the consolidated balance sheet.

Note 8. Income Taxes

Our effective tax rate for the three months ended December 31, 2023 was a provision of 26.8%. Such rate differed from the Federal Statutory rate of 21.0% primarily due to state income taxes.

Our effective tax rate for the three months ended December 31, 2022 was a provision of 24.3%. Such rate differed from the Federal Statutory rate of 21.0% primarily due to state income taxes.

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Note 9. Segment Information

Segments

Operating segments are defined in the criteria established under the Financial Accounting Standards Board - Accounting Standards Codification (“FASB ASC”) Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. The Company’s CODM assesses performance and allocates resources based on three operating segments: Alico Citrus, Conservation and Environmental Resources and Other Operations.

Total revenues represent sales to unaffiliated customers, as reported in the Condensed Consolidated Statements of Operations. Goods and services produced by these segments are sold to wholesalers and processors in the United States, who prepare the products for consumption. The Company evaluates the segments’ performance based on direct margins (gross profit) from operations before general and administrative expenses, interest expense, other income (expense) and income taxes, not including nonrecurring gains and losses.

Information by operating segment is as follows:


(in thousands)	Three Months Ended December 31,
	2017			2016
(in thousands)
(in thousands)								Three Months Ended December 31,
							2023		2023	2022
Revenues:
Alico Citrus	$	17,079		$	16,877
Conservation and Environmental Resources	363			301
Other Operations	91			267
Alico Citrus
Alico Citrus
Land Management and Other Operations
Total revenues	17,533			17,445

Operating expenses:
Operating expenses:
Operating expenses:
Alico Citrus	16,295			14,085
Conservation and Environmental Resources	597			514
Other Operations	59			93
Alico Citrus
Alico Citrus
Land Management and Other Operations
Total operating expenses	16,951			14,692

Gross profit (loss):
Gross profit:
Gross profit:
Gross profit:
Alico Citrus	784			2,792
Conservation and Environmental Resources	(234		)	(213		)
Other Operations	32			174
Alico Citrus
Alico Citrus
Land Management and Other Operations
Total gross profit	$	582		$	2,753

Depreciation, depletion and amortization:
Depreciation, depletion and amortization:
Depreciation, depletion and amortization:
Alico Citrus	$	3,398		$	3,516
Conservation and Environmental Resources	59			169
Other Operations	11			32
Alico Citrus
Alico Citrus
Land Management and Other Operations
Other Depreciation, Depletion and Amortization	22			199
Total depreciation, depletion and amortization	$	3,490		$	3,916

Table of ~~operations or cash flows.~~Contents

Note ~~12.~~13. Related Party Transactions

Lease Agreement

~~Clayton G. Wilson~~

~~The Company~~On January 1, 2022, Mr. Kiernan, the Company’s President and CEO, entered into a ~~Separation~~Hunting Lease Agreement and ~~Consulting Agreement with Clayton G. Wilson (the “Separation~~Real Estate Purchase and Consulting Agreement”), the Company’s Chief Executive Officer, pursuant to which Mr. Wilson stepped down as Chief Executive Officer of the Company effective as of December 31, 2016. Under the Separation and Consulting Agreement, Mr. Wilson also acknowledged and agreed that he would continue to be bound by the restrictive covenants set forth in his EmploymentSale Option Agreement, with the ~~Company. The Separation~~Company (the “Kiernan Lease Agreement”). Under the Kiernan Lease Agreement, the Company leased approximately 93 acres of Company owned, largely unimproved land (the “Land”) to Mr. Kiernan for a three-year term commencing on January 1, 2022, and ~~Consulting Agreement provided that, subject to his execution, delivery, and non-revocation~~ending on January 1, 2025, with a yearly rent of ~~a general release of claims in favor~~$1,860 (in whole dollars). Additionally, under the terms of the ~~Company, Mr. Wilson would be entitled to vesting of any unvested portion of~~Kiernan Lease Agreement, the ~~restricted stock award~~Company granted to ~~him under his Employment Agreement. In addition,~~Mr. Kiernan an option to purchase the ~~Separation and Consulting Agreement provided that Mr. Wilson serve as a consultant to~~Land from the Company, exercisable only during ~~2017~~the one-year period January 1, 2022, through January 1, 2023, and ~~would receive~~at a price of $480 ($5,161 per acre), which price is based on an aggregate consulting fee of $750,000 for such services (payable $200,000 in an initial lump sum, $275,000 in a lump sum on July 1, 2017, and $275,000 in six equal monthly installments commencing July 31, 2017 and ending December 31, 2017). As of December 31, 2017 the Company satisfied its obligation to Mr. Wilson in full. The Company expensed $187,500 for the three months ended December 31, 2017. Mr. Wilson resigned as a member of the Company’s Board of Directors effective February 27, 2017.

~~Remy W. Trafelet, Henry R. Slack, and George R. Brokaw~~

On December 31, 2016, the Company entered into new employment agreements (collectively, the “Employment Agreements”) with each of Remy W. Trafelet, Henry R. Slack, and George R. Brokaw (collectively, the “Executives”). Mr. Trafelet serves as the President and Chief Executive Officer of the Company, Mr. Slack serves as the Executive Chairman of the Company, and Mr. Brokaw serves as the Executive Vice Chairman of the Company, and each of them continues to serve on the Company’s Board of Directors. The Employment Agreements provide for an annual base salary of $400,000 in the case of Mr. Trafelet and $250,000 in the case of each of Messrs. Slack and Brokaw and, additionally, provided for payment to the Executives an amount in cash equal to $400,000 to Mr. Trafelet and $250,000 to each of Messrs. Slack and Brokaw within five business days of December 31, 2016.

As part of their employment agreements, each of the Executives were granted stock options. A stock option grant of 300,000 options in the case of Mr. Trafelet, and 225,000 options in the case of each of Messrs. Slack and Brokaw (collectively, the “Option Grants”) was provided. The Option Grants vest in accordance with the terms as described in Note 10.

~~The Employment Agreements also provide that, if the applicable Executive’s employment is terminated~~independent appraisal obtained by the Company without “cause” or the applicable Executive resigns with “good reason” (as each such term is defined in the Employment Agreements), then, subject to his execution, delivery, and non-revocation of a general release of claims in favor of the Company, the Executive will be entitled to cash severance in an amount equal to 24 months (in the case of Mr. Trafelet) or 18 months (in the case of Messrs. Slack and Brokaw) of the Executive’s annual base salary.

The Employment Agreement includes various restrictive covenants in favor of the Company, including a confidentiality covenant, a nondisparagement covenant, and 12-month post-termination noncompetition and customer and employee nonsolicitation covenants.

~~As of June 26, 2017, both Messrs. Slack and Brokaw have agreed to waive payment of their salary.~~

~~Ken Smith~~

On March 20, 2015, Ken Smith tendered his resignation as Chief Operating Officer, and as an employee of the Company. Mr. Smith’s resignation included a waiver of any rights to any payments under his Change-in-Control Agreement with the Company. On ~~March 20, 2015,~~August 26, 2022, Mr. Kiernan exercised his option to purchase the land. Pursuant to the exercise of the option, the Company ~~and~~sold 85 acres to Mr. Smith also entered into a Consulting and Non-Competition Agreement under which (i) Mr. Smith will provide consulting services to the Company during the three-year period after the resignation date, (ii) Mr. Smith agreed to be bound by certain non-competition covenants relating to the Company’s citrus operations and non-solicitation and non-interference covenantsKiernan on October 20, 2022 for a period of two years after the resignation date, and (iii) the Company paid Mr. Smith $925,000 for such services and covenants. The Company expensed $0 and approximately $50,000 under the Consulting and Non-Competition Agreement for each of the three months ended December 31, 2017 and 2016, respectively.$439 ($5,161 per acre).

~~Shared Services Agreement~~

The Company has a shared services agreement with Trafelet Brokaw Capital Management, L.P. (“TBCM”), whereby the Company will reimburse TBCM for use of office space and various administrative and support services. The annual cost of the office and

services is approximately $592,000. The agreement will expire in May 2018. The Company expensed approximately $148,000 and $73,000 under the Shared Services Agreement for the three months ended December 31, 2017 and 2016, respectively.

Note ~~13.~~14. Subsequent Events

~~On January 19, 2018, the Company sold certain trailers to a third party for $500,000.~~ The Company ~~received $125,000~~evaluated subsequent events and the remaining portion is to be paid in accordance with a promissory note over three years. The trailers were classified as an Asset Held for Sale in the accompanying Condensed Consolidated Balance Sheets attransactions that occurred after December 31, ~~2017~~2023, the balance sheet date, up to the date that the unaudited condensed consolidated financial statements were issued and ~~September 30, 2017.~~determined there are no additional events to disclose.

On January 25, 2018, the Company sold its breeding herd to a third party for approximately $7,800,000. The breeding herd was classified as an Asset Held for Sale in the accompanying Condensed Consolidated Balance Sheets at December 31, 2017 and September 30, 2017. As part

Table of ~~this transaction, the purchaser will also lease grazing and other rights on the Alico Ranch from the Company.~~Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of ~~Operations.~~Operations

The following discussion and analysis should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and related Notes ~~thereto. Additional context can also be found in Alico's Annual Report on Form 10-K for the fiscal year ended September 30, 2017 as filed with the Securities~~ theretoand ~~Exchange Commission (“SEC”) on December 11, 2017.~~

~~Cautionary Statement Regarding Forward-Looking Information~~

~~We provide forward-looking~~other information included elsewhere in this Quarterly Report on Form 10-Q, particularly in this Management’s Discussion and Analysis and Results of Operations, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulation and rules; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and their by-products, increased pressure from diseases including citrus greening and citrus canker, as well as insects and other pests; disruption of water supplies or changes in water allocations; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest rates; availability of financing for land development activities and other growth opportunities; onetime events; acquisitions and divestitures including our ability to achieve the anticipated results of the Orange-Co acquisition and Silver Nip Citrus merger; seasonality; our ability to achieve the anticipated cost savings under the Alico 2.0 Modernization program; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in agricultural land values; changes in dividends; and market and pricing risks due to concentrated ownership of stock. These assumptions are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those Risks Factors described in our2023 Annual Report on Form 10-K, ~~for~~and in our other filings with the ~~fiscal year ended September 30, 2017 and~~SEC.Our actual results of operations may differ materially from those discussed in forward-looking statements as a result of various factors, including, but not limited to, those included our ~~Quarterly Reports~~2023 Annual Report on Form ~~10-Q.~~10-K and other portions of this Quarterly Report. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future. In the following discussion and analysis,dollars are in thousands.

Business Overview

Business Description

Alico, Inc. ~~(the "Company"~~, together with its subsidiaries (collectively, “Alico”, the “Company”, “we”, “us” or “our”) generates operating revenues primarily from the sale of ~~its~~our citrus products, providing management services to citrus groves owned by third parties, and ~~conservation~~grazing and ~~resources operations. The Company operates~~hunting leasing. We operate as ~~three~~two business segments, and ~~substantially~~ all of ~~its~~our operating revenues are generated in the United States. ~~During~~For the three months ended December 31, ~~2017, Alico~~2023, we generated operating revenues of ~~approximately $17,533,000,~~$13,985, loss from operations of ~~approximately $3,304,000,~~$17,527, and net income attributable to common stockholders of ~~approximately $8,746,000. Cash~~$42,945. Net cash used in ~~operations~~operating activities was ~~approximately $9,689,000 during~~$13,169 for the three months ended December 31, ~~2017.~~

2023.

Business Segments

Operating segments are defined in the criteria established under the Financial Accounting Standards Board -– Accounting Standards Codification (“FASB ASC”) Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by ~~the Company’s~~our chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. ~~The Company’s~~Our CODM assesses performance and allocates resources based on ~~three~~its operating ~~segments: Alico Citrus (formerly Orange Co.), Conservation and Environmental Resources and Other Operations.~~segments.

~~The Company operates three~~Our two segments ~~related to its various land holdings,~~are as follows:

•Alico Citrus includes activities related to planting, owning, cultivating and/or managing citrus groves ~~in order~~ to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit ~~as well as, to~~and value-added services, which include contracting for the harvesting, marketing and hauling of ~~citrus.~~citrus; and

~~Conservation~~•Land Management and ~~Environmental Resources~~Other Operations includes activities related to ~~cattle grazing, sod,~~ native plant sales, grazing and ~~animal sales,~~hunting leasing, management and/or conservation of unimproved native ~~pasture land.~~

~~Other Operations consists of~~pastureland and activities related to rock mining royalties ~~oil exploration~~ and other insignificant lines of business. Also included are activities related to owning and/or leasing improved farmland. Improved farmland is acreage that has been converted, or is permitted to be converted, from native pasture and which may have various improvements including irrigation, drainage and roads.

For the three months ended December 31, 2023 and 2022, the Alico Citrus segment generated 97.2% of our consolidated revenues and the Land Management and Other Operations segment generated 2.8% of our consolidated revenues.

Recent Developments

Florida Forever Program Land Sale

On December 21, 2023, the sale of 17,229 acres of the Alico Ranch to the State of Florida was consummated and we received gross proceeds of $77,631 (the “Sale”).

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Debt Retirement

On December 26, 2023. the proceeds from the Sale were used to repay our Working Capital Line of Credit (“WCLC”) and retire $19,094 of Variable Rate Term Debt and will retain the balance of the proceeds for general corporate purposes. See Note 4. “Assets Held for Sale” to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.

Grove Management Agreement

On October 30, 2023, we entered into a Citrus Grove Management Agreement (the “Grove Owners Agreement”) with an unaffiliated group of third parties to provide citrus grove caretaking and harvest and haul management services for approximately 3,300 acres owned by such third parties. Under the terms of the Grove Owners Agreement, we are reimbursed by the third parties for all costs incurred related to providing these services and receive a management fee based on acres covered under this agreement. The Grove Owners Agreement may be terminated with written notice provided at least 60 days prior to the commencement of the next fiscal year, occurring subsequent to September 30, 2024, and with shorter notice under certain conditions.

Citrus Research and Field Trial Foundation

In January 2024, we received $1,790 from the Citrus Research and Field Trial Foundation (“CRAFT”) of grower’s support payments in connection with our use of Oxytetracycline (“OTC”), to combat the effect of “greening” in our citrus trees.

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Condensed Consolidated Results of Operations

The following discussion provides an analysis of our results of operations for the three months ended December 31, 2023, as compared to 2022:


(in thousands)
	Three Months Ended December 31,	Change
		2023		2022		$		%
Operating revenues:
Alico Citrus		$	13,592	$	10,268	$	3,324	32.4	%
Land Management and Other Operations		393		320		73		22.8	%
Total operating revenues		13,985		10,588		3,397		32.1	%

Gross profit:
Alico Citrus		(14,515)		(4,027)		(10,488)		(260.4)	%
Land Management and Other Operations		260		226		34		15.0	%
Total gross profit		(14,255)		(3,801)		(10,454)		(275.0)	%

General and administrative expenses		3,272		2,509		763		30.4	%
Loss from operations		(17,527)		(6,310)		(11,217)		(177.8)	%
Total other income, net		75,515		2,041		73,474		NM
Income (loss) before income taxes		57,988		(4,269)		62,257		NM
Income tax provision (benefit)		15,552		(1,083)		16,635		NM
Net income (loss)		42,436		(3,186)		45,622		NM
Net loss attributable to noncontrolling interests		509		36		473		NM
Net income (loss) attributable to Alico, Inc. common stockholders		$	42,945	$	(3,150)	$	46,095	NM

NM = Not meaningful

Operating Revenue

The increase in revenue for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022, was primarily due to a 24.9% increase in pound solids, driven by a 30.1% increase in processed box production, as we begin to recover from the effects of Hurricane Ian.

Operating Expenses

The increase in operating expenses for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022, was primarily driven by a $10,846 adjustment to reduce inventory to its net realizable value, as a result of lower than anticipated box production from our Early and Mid-Season crop, due to the impacts of Hurricane Ian; as well as increased harvest and haul costs driven by our increased box production and approximately $1,300 we received under the CRBG program in the quarter ended December 31, 2022, which was the last installment of this grant program for the 2017 storm, Hurricane Irma. See Note 3. “Inventories” to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.

General and Administrative Expense

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General and administrative expense for the three months ended December 31, 2023 was $3,272, compared to $2,509 for the three months ended December 31, 2022. The increase was primarily due to an increase in salaries and wages of $607 and consulting fees principally related to real estate entitlement activities of $317.

Other Income (expense), net

Other income (expense), net for the three months ended December 31, 2023 and 2022, was $75,515 and $2,041, respectively. The increase to other income (expense), net, is primarily due to the sale of 17,229 acres of the Alico Ranch to the State of Florida.

Income Taxes

The income tax provision (benefit) was $15,552 and $(1,083) for the three months ended December 31, 2023 and 2022, respectively. The income tax provision for the three months ended December 31, 2023 was principally due to the sale of 17,229 acres of the Alico Ranch to the State of Florida, while the income tax provision for the three months ended December 31, 2022 was driven by the pre-tax loss generated for the period.

The following discussion provides an analysis of our operating segments:

Alico Citrus


(in thousands, except per box and per pound solids data)

	Three Months Ended December 31,				Change
	2023		2022		Unit		%
Operating Revenues:
Early and Mid-Season	$	12,395	$	9,586	$	2,809	29.3	%

Fresh Fruit and Other	506		493		13		2.6	%
Grove Management Services	691		189		502		265.6	%
Total	$	13,592	$	10,268	$	3,324	32.4	%
Boxes Harvested:
Early and Mid-Season	1,047		805		242		30.1	%

Total Processed	1,047		805		242		30.1	%
Fresh Fruit	31		36		(5)		(13.9)	%
Total	1,078		841		237		28.2	%
Pound Solids Produced:
Early and Mid-Season	4,666		3,737		929		24.9	%

Total	4,666		3,737		929		24.9	%
Pound Solids per Box:
Early and Mid-Season	4.46		4.64		(0.18)		(4.0)	%

Price per Pound Solids:
Early and Mid-Season	$	2.66	$	2.57	$	0.09	3.4	%

Price per Box:
Fresh Fruit	$	16.32	$	12.44	$	3.88	31.2	%
Operating Expenses:
Cost of Sales	$	23,602	$	12,486	$	11,116	89.0	%
Harvesting and Hauling	4,076		2,979		1,097		36.8	%
Fresh Fruit and Other	61		(1,237)		1,298		(104.9)	%
Grove Management Services	368		67		301		NM
Total	$	28,107	$	14,295	$	13,812	96.6	%

NM = Not meaningful

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Components of Results of Operations for Alico Citrus Segment

We sell our Early and Mid-Season and Valencia oranges to orange juice processors. The processors generally buy the citrus crop on a pound solids basis, which is the measure of the soluble solids (sugars and acids) contained in one box of fruit. Our Fresh Fruit revenue is derived from sales to packing houses that purchase the citrus on a per box basis. We also provide citrus grove caretaking and harvest and haul management services to third parties from which revenues are recorded as Grove Management Services, including a management fee. Other revenues consist of the purchase and reselling of fruit.

Operating expenses for our Alico Citrus segment consist primarily of Cost of Sales, Harvesting and Hauling costs and Grove Management Service costs. Cost of Sales represents the cost of maintaining the citrus groves for the preceding calendar year and does not vary in relation to production. Harvesting and Hauling costs represent the costs of bringing citrus product to processors and vary based upon the number of boxes produced. Grove Management Services costs include those costs associated with citrus grove caretaking and harvest and haul management services provided to third parties. Other expenses include the period costs of third-party grove caretaking and the purchase and reselling of third-party fruit.

Comparison of the Three Months Ended December 31, 2023 and 2022 for the Alico Citrus Segment

The increase in revenue for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, was primarily due to a 24.9% increase in pound solids, driven by a 30.1% increase in processed box production, as we began to recover from the effects of Hurricane Ian. Our fruit production for the three months ended December 31, 2022 was adversely impacted by the fruit drop caused as a result of the impact of Hurricane Ian in September 2022. Although Hurricane Ian initially impacted the fiscal year 2023 harvest, we expect it may take another season, or more, for the groves to recover to pre-hurricane production levels.

In addition, there was an increase in the price per pound solid of 3.4% for the three months ended December 31, 2023, compared to the same period in the prior year, as a result of more favorable pricing in one of our contracts with Tropicana.

For the three months ended December 31, 2023, we also recorded an increase in revenue from sales of Fresh Fruit, primarily due to an increase in pricing per box of 31.2%, partially offset by a decrease in boxes produced of 13.9%, as compared to the three months ended December 31, 2022.

We recorded $691 and $189 of revenue from the Grove Owners relating to Grove Management Services for the three months ended December 31, 2023 and 2022, respectively. The increase in grove management services revenue was principally due to the signing of the new Grove Owners Agreement in October 2023.

The 89.0% increase in Cost of Sales, as compared to the same period in the prior year, was principally due to an adjustment of $10,846 to reduce inventory to its net realizable value as a result of the continued recovery from the impacts of Hurricane Ian, increased harvest and haul costs driven by our increased box production and approximately $1,300 we received under the CRBG program in the quarter ended December 31, 2022, which was the last installment of this grant program for the 2017 storm, See Note 3. “Inventories” to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.

For the three months ended December 31, 2023, we also recorded an increase in Harvesting and Hauling expenses per box, which is directly related to a 30.1% increase in boxes harvested and an increase in the cost per box of harvesting labor costs, when compared to the similar period in the prior year.

We recorded $368 and $67 of operating expenses relating to grove management services for the Grove Owners for the three months ended December 31, 2023 and 2022, respectively. The increase in grove management services expenses was principally due to the signing of the new Grove Owners Agreement in October 2023.

The credit amounts shown in “Fresh Fruit and Other” in operating expenses above primarily represent federal relief proceeds of approximately $1,300 received under the CRBG program in the quarter ended December 31, 2022.

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Land Management and Other Operations

The table below presents key operating measures for the three months ended December 31, 2023 and 2022 for the Land Management and Other Operations segment:


(in thousands)

	Three Months Ended December 31,	Change
		2023		2022		$		%
Revenue From:
Land and Other Leasing		$	314	$	281	$	33	11.7	%
Other		79		39		40		102.6	%
Total		$	393	$	320	$	73	22.8	%
Operating Expenses:
Land and Other Leasing		$	132	$	93	$	39	41.9	%
Other		1		1		—		—	%
Total		$	133	$	94	$	39	41.5	%

Components of Results of Operations for Land Management and Other Operations Segment

Land and Other Leasing includes lease income from leases for grazing rights, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties, and other miscellaneous income.

Land and Other Leasing operating expenses includes real estate, property taxes, general and administrative expenses including salaries, benefits and legal.

Comparison of the Three Months Ended December 31, 2023 and 2022 for the Land Management and Other Operations Segment

The increase in revenues from Land Management and Other Operations for the three months ended December 31, 2023, as compared to the same period in the prior year, was primarily due to the signing of new farming leases.

The increase in operating expenses from Land Management and Other Operations for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022, was primarily due to an increase in property taxes.

Seasonality

We are primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of our fiscal year produce most of our annual revenue. Working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. Because of the seasonality of the business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

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Liquidity and Capital Resources

A comparative balance sheet summary is presented in the following table:


(in thousands)	December 31, 2023		September 30, 2023		Change

Cash	$	18,632	$	1,062	$	17,570
Total current assets	$	71,817	$	58,805	$	13,012
Total current liabilities	$	28,540	$	15,065	$	13,475
Working capital	$	43,277	$	43,740	$	(463)
Total assets	$	441,209	$	428,353	$	12,856
Principal amount of term loans and lines of credit	$	85,215	$	129,319	$	(44,104)
Current ratio	2.52 to 1		3.90 to 1
Debt ratio	0.19 to 1		0.30 to 1

Sources and Uses of Liquidity and Capital

Our business has historically generated full fiscal year positive net cash flows from operating activities, although the net cash flow in the first quarter of each fiscal year has been negative because of seasonality and the associated need to expend cash in advance of generating revenues from the harvesting season. Sources of cash primarily include cash flows from operations, sales of under-performing land and other assets, amounts available under our credit facilities, and access to capital markets. Access to additional borrowings under revolving lines of credit is subject to the satisfaction of customary borrowing conditions. As a public company, we may have access to other sources of capital. However, access to, and availability of, financing on acceptable terms in the future will be affected by many factors, including (i) financial condition, prospects, and credit rating; (ii) liquidity of the overall capital markets; and (iii) the state of the economy. There can be no assurance that we will continue to have access to the capital markets on acceptable terms, or at all.

The principal uses of cash that affect our liquidity position include the following: operating expenses including employee costs, the cost of maintaining the citrus groves, harvesting and hauling of citrus products, capital expenditures, stock repurchases, dividends, debt service costs including interest and principal payments on term loans and other credit facilities and acquisitions.

Management believes that a combination of cash-on-hand, cash generated from operations, and asset sales and availability under our lines of credit will provide sufficient liquidity to service the principal and interest payments on our indebtedness and will satisfy working capital requirements and capital expenditures for at least the next twelve months and over the long term. However, this is subject, to a certain extent, on general economic, financial, competitive, regulatory and other factors that are beyond our control.

Borrowing Facilities and Long-term Debt

We have a $70,000 working capital line of credit and a $25,000 revolving line of credit, of which $69,752 and $25,000 was available for general use as of December 31, 2023 (see Note 7. “Long-Term Debt and Lines of Credit” to the accompanying Condensed Consolidated Financial Statements). We may utilize the available cash to pay down indebtedness, pursue citrus grove acquisitions, conduct share repurchases, and possibly reinstate increased dividends. If we choose to pursue significant growth and other corporate opportunities, these actions could have a material adverse impact on its cash balances and may require us to finance such activities by drawing down on our lines of credit or by obtaining additional debt or equity financing. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. Any inability to obtain additional financing could adversely impact our ability to pursue different growth and other corporate opportunities.

The level of debt could have important consequences on our business, including, but not limited to, increasing our vulnerability to general adverse economic and industry conditions, limiting the availability of cash flow to fund future investments, capital expenditures, working capital, business activities and other general corporate requirements, and limiting flexibility in planning for, or reacting to, changes in its business and industry.

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Our credit facilities are subject to various debt covenants including the following financial covenants: (i) minimum debt service coverage ratio of 1.10 to 1.00; (ii) tangible net worth of at least $160,000 increased annually by 10% of consolidated net income for the preceding years, or $174,628 applicable for the year ended September 30, 2023; (iii) minimum current ratio of 1.50 to 1.00; (iv) debt to total assets ratio not greater than .625 to 1.00; and (v) solely in the case of the WCLC, a limit on capital expenditures of $30,000 per fiscal year. As of December 31, 2023, the Company was in compliance with all of the financial covenants.

Cash Flows

Cash and restricted cash increased from $269 as of December 31, 2022, to $21,262 as of December 31, 2023. The components of these changes are discussed below.


(in thousands)	Three Months Ended December 31,				Change
	2023		2022
Net Cash used in operating activities	$	(13,169)	$	(9,665)	$	(3,504)
Net Cash provided by (used in) investing activities	75,225		(496)		75,721
Net Cash (used in) provided by financing activities	(44,486)		9,565		(54,051)
Net increase (decrease) in cash and restricted cash	$	17,570	$	(596)	$	18,166

Net Cash Provided By (Used In) Operating Activities

The $3,504 increase in Net Cash used in operating activities was principally due to increased interest expense associated with borrowings under our WCLC and the timing of interest payments, in connection with the early repayment of debt, and other payments, for the three months ended December 31, 2023, as compared to the same period for the prior year.

Net Cash Provided By (Used In) Investing Activities

The $75,721 increase in Net Cash provided by (used in) investing activities for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, is primarily due to proceeds from the sale of 17,229 acres of the Alico Ranch.

Net Cash (Used In) Provided By Financing Activities

The increase of $54,051 in Net Cash (used in) provided by financing activities for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022, was primarily due to the repayment of the WCLC and the $19,094 Met Life Variable-Rate Term debt with the proceeds from the sale of 17,229 acres of the Alico Ranch, as compared to an increase in net borrowings under WCLC in the same period in the prior year.

We had $0 and $19,045 outstanding on our revolving lines of credit as of December 31, 2023 and December 31, 2022, respectively.

The WCLC line of credit agreement provides for Rabo Agrifinance, Inc. to issue up to $2,000 in letters of credit on our behalf. As of December 31, 2023, there was $248 in outstanding letters of credit, which correspondingly reduced our availability under the WCLC.

Contractual Obligations

Our material cash requirements from known contractual and other obligations are described in the accompanying notes to the financial statements within Item 1 of Part I of this Quarterly Report. These include principal and interest payments on long-term debt as described in Note 7. “Long-Term Debt and Lines of Credit”, operating leases as described in Note 10. “Leases” and purchase commitments as described in Note 12. “Commitments and Contingencies” to the Condensed Consolidated Financial Statements included in this Quarterly Report.

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Critical Accounting Policies and Estimates

The discussion and analysis of the ~~Company's~~Company’s financial condition and results of operations is based upon its unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires itthe Company to make certain estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. ~~Alico bases~~We base these estimates on historical experience, available current market information and on various other assumptions that management believes are reasonable under the circumstances. Additionally, the Company evaluates the results of these estimates on an on-going basis. Management’s estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

~~There have been no significant changes during this reporting period~~See Note 1. “Description of Business and Basis of Presentation” to the ~~policies and disclosures set forth~~Condensed Consolidated Financial Statements in Part ~~II, Item 7 in Alico's Annual Report on Form 10-K for the fiscal year ended September 30, 2017.~~

~~See Note 1. "Basis of Presentation" to the condensed consolidated financial statements in~~I, Item 1 of ~~Part I of~~ this ~~10-Q,~~Quarterly Report for a detailed description of recent accounting pronouncements.

~~Recent Developments~~

On November 16, 2017, Alico announced the Alico 2.0 Modernization Program (“Alico 2.0”). The program is focused on aggressively improving the operations of the Company and optimizing its return on capital employed through cost reductions, increased efficiencies and disposition of non-performing assets. The Program began in early 2017 to transform Alico’s three legacy businesses (Alico, Orange Co., and Silver Nip) into a single efficient enterprise, now called Alico Citrus. Every aspect of Alico’s citrus and ranch operations, all back office support activities, and the productivity of all assets were analyzed to determine how to eliminate costs that will not negatively affect citrus production and also improve performance throughout the Company. The changes required to realize those improvements have now been implemented. As part of the program, Alico realigned its management structure and appointed Danny Sutton as the President and General Manager of Alico Citrus.

As indicated in Alico’s 2.0, the Company intended to divest itself from and cease operations at the Ranch. On January 25, 2018, the Company sold its breeding herd and leased grazing and other rights on its Ranch to a third party for approximately $7,800,000. The Company will continue to own the property and conduct its long term water dispersement program and wildlife management programs.

~~Condensed Consolidated Results of Operations~~

The following discussion provides an analysis of Alico's results of operations and should be read in conjunction with the accompanying Condensed Consolidated Statements of Operations for the three months ended December 31, 2017 and 2016:

(in thousands) Three Months Ended
December 31, Change
2017 2016 $ %
Operating revenues:

Alico Citrus $ 17,079
$ 16,877
$ 202
1.2 %
Conservation and Environmental Resources 363
301
62
20.6 %
Other Operations 91
267
(176 ) (65.9 )%
Total operating revenues 17,533
17,445
88
0.5 %

Gross profit (loss):

Alico Citrus 784
2,792
(2,008 ) (71.9 )%
Conservation and Environmental Resources (234 ) (213 ) (21 ) 9.9 %
Other Operations 32
174
(142 ) (81.6 )%
Total gross profit 582
2,753
(2,171 ) (78.9 )%

General and administrative expenses 3,886
3,788
98
2.6 %
Loss from operations (3,304 ) (1,035 ) (2,269 ) 219.2 %
Total other expense, net (375 ) (1,981 ) 1,606
(81.1 )%
Loss before income taxes (3,679 ) (3,016 ) (663 ) 22.0 %
Income tax benefit (12,417 ) (1,273 ) (11,144 ) NM
Net income (loss) 8,738
(1,743 ) 10,481
NM
Net loss attributable to noncontrolling interests 8
8
—
NM
Net income (loss) attributable to Alico, Inc. common stockholders $ 8,746
$ (1,735 ) $ 10,481
NM

~~NM - Not Meaningful~~

~~The following discussion provides an analysis of the Company's business segments:~~

~~Alico Citrus~~

~~The table below presents key operating measures for the three months ended December 31, 2017 and 2016:~~

(in thousands, except per box and per pound solids data)

Three Months Ended
December 31,
Change
2017 2016 Unit %
Operating Revenues:
Early and Mid-Season $ 15,417
$ 13,669
$ 1,748
12.8 %
Fresh Fruit 1,088
2,621
(1,533 ) (58.5 )%
Purchase and Resale of Fruit 35
99
(64 ) (64.6 )%
Other 539
488
51
10.5 %
Total $ 17,079
$ 16,877
$ 202
1.2 %
Boxes Harvested:

Early and Mid-Season 1,214
1,029
185
18.0 %
Total Processed 1,214
1,029
185
18.0 %
Fresh Fruit 73
129
(56 ) (43.4 )%
Total 1,287
1,158
129
11.1 %
Pound Solids Produced:

Early and Mid-Season 6,069
5,440
629
11.6 %
Total 6,069
5,440
629
11.6 %
Pound Solids per Box:

Early and Mid-Season 5.00
5.29
(0.29 ) (5.5 )%
Price per Pound Solids:

Early and Mid-Season $ 2.54
$ 2.51
$ 0.03
1.2 %
Price per Box:

Fresh Fruit $ 14.75
$ 20.32
$ (5.57 ) (27.4 )%
Operating Expenses:

Cost of Sales $ 12,245
$ 8,630
$ 3,615
41.9 %
Fresh Fruit Packaging —
1,182
(1,182 ) NM
Harvesting and Hauling 3,497
3,747
(250 ) (6.7 )%
Purchase and Resale of Fruit 41
97
(56 ) (57.7 )%
Other 512
429
83
19.3 %
Total $ 16,295
$ 14,085
$ 2,210
15.7 %

~~NM - Not Meaningful~~

Alico primarily sells its Early and Mid-Season and Valencia oranges to processors that convert the majority of the citrus crop into orange juice. The processors generally buy citrus on a pound solids basis, which is the measure of the soluble solids (sugars and acids) contained in one box of fruit. Fresh Fruit is generally sold to packing houses that purchase citrus on a per box basis. Purchase and resale of fruit relates to the buying of fruit from third parties and generally reselling this fruit to processors. These revenues and costs vary based on the number of boxes bought and sold. Other revenues consist of third-party grove caretaking and the contracting for harvesting and hauling of citrus.

The Company's operating expenses consist primarily of cost of sales and harvesting and hauling costs. Cost of sales represents the cost of maintaining Alico's citrus groves for the preceding calendar year and does not vary in relation to production. Harvesting and hauling costs represent the costs of bringing citrus product to processors, and varies based upon the number of boxes produced. Other expenses include the period costs of third-party grove caretaking, and the contracting for harvesting and hauling activities.

The increase in operating revenues for the three months ended December 31, 2017, as compared to the three months ended December 31, 2016, is primarily due to the timing of when the Early and Mid-Season fruit was harvested. As a result of Hurricane Irma, the Company commenced the harvesting of its Early and Mid-Season fruit in late October, as compared to the harvesting commencing

in mid to late November in the previous harvest season. As such, the Company has harvested a greater number of boxes in the three month period ended December 31, 2017 as compared to the same period in 2016. The increase from the greater number of boxes being harvested was partially offset by a reduction in pound solids per box of 0.29. The Company will complete the harvesting earlier in the current fiscal year, as compared to the prior year, for its Early and Mid-Season fruit and anticipates an overall decrease in the number of boxes harvested and revenues generated from Early and Mid-Season fruit for the 2018 harvest as compared to the prior year. Offsetting this increase was fewer boxes of fresh fruit sold at a lower price per box, as compared to the same period in the prior year.

The USDA, in its January 12, 2018 Citrus Crop Forecast for the 2017-18 harvest season, indicated that the Florida orange crop will decrease from approximately 68,700,000 boxes for the 2016-17 crop year to approximately 46,000,000 boxes for the 2017-18 crop year, a decrease of approximately 33.0%. The significant decline is primarily the result of Hurricane Irma and the related fruit loss experienced as well as the stress on the citrus trees for short-term fruit growth.

We originally estimated our 2018 processed boxes will decrease by approximately 40-45% compared to our fiscal year 2017 processed boxes, on a per acre basis. Based on the harvesting of fruit through the first quarter of fiscal 2018, the Company estimate of reduced production for fiscal year 2018 will remain unchanged. We expect that our operating expenses for fiscal year 2018 will remain consistent with fiscal year 2017 on a per acre basis.

The increase in cost of sales for the three months ended December 31, 2017 compared to three months ended December 31, 2016 primarily relates to the timing of the harvesting of the Early and Mid-Season fruit as well as costs incurred for clean-up and repairs as a result of Hurricane Irma. As a result of commencing the harvesting of Early and Mid-Season fruit earlier in the season and harvesting a greater percentage of boxes, in relation to estimated total boxes to be harvested for the full season, in the three months ended December 31, 2017 as compared to the same period in the prior year, a greater percentage of costs were allocated to Cost of Sales in the period.

Alico 2.0 explored every aspect of Alico’s citrus and ranch operations, including corporate and operational cost structures, grove costs, purchasing and procurement, non-performing and under-performing assets, professional fees, and human resources efficiency. Under this program, we expect to reduce total expenses per acre from $3,314/acre in fiscal 2016 to $2,164/acre when Alico 2.0 is fully implemented, which is expected to be over the next two years. Overall, we anticipate the program should reduce the Company’s cost to produce a pound solid from $2.14 to $1.56. This efficiency will be achieved through better purchasing, more precise application of selected fertilizers and chemicals, outsourcing work such as harvesting, hauling, and certain caretaking tasks, and by streamlining grove management. We also will be deploying a more efficient labor model that is consistent and uniform for field staffing and grove operating programs and aligns with the geographical footprint of the citrus groves. However, there can be no assurance that we will be able to achieve the anticipated cost savings under Alico 2.0.

~~Conservation and Environmental Resources~~

~~The table below presents key operating measures for the three months ended December 31, 2017 and 2016:~~

(in thousands, except per pound data)
Three Months Ended December 31, Change
2017 2016 $ %
Revenue From:

Sale of Calves $ 57
$ 20
$ 37
NM
Land Leasing 247
230
17
7.4 %
Other 59
51
8
15.7 %
Total $ 363
$ 301
$ 62
20.6 %
Pounds Sold:

Calves 49
16
33
NM
Price Per Pound:

Calves $ 1.17
$ 1.22
$ (0.05 ) (4.1 )%
Operating Expenses:

Cost of Calves Sold $ 69
$ 24
$ 45
NM
Land Leasing Expenses 133
32
101
NM
Water Conservation 395
458
(63 ) (13.7 )%
Total $ 597
$ 514
$ 83
16.1 %

~~NM - Not Meaningful~~

~~Ranch~~

The increase in revenues from the sale of calves for the three month ended December 31, 2017, as compared to the three months ended December 31, 2016, is primarily due to an increase in the number of calves sold, partially offset by a decrease in price per pound sold.

In January 2018, the Company sold the breeding herd and leased the ranch to a third party operator. The Company will continue to own the property and conduct its long term water dispersement program and wildlife management programs.

~~Conservation~~

In December 2012, the SFWMD issued a solicitation request for projects to be considered for the Northern Everglades Payment for Environmental Services Program. In March 2013, the Company submitted its response proposing a dispersed water management project on a portion of its ranch land.

On December 11, 2014, the SFWMD approved a contract with the Company. The contract term is eleven years and allows up to one year for implementation (design, permitting, construction and construction completion certification) and ten years of operation, whereby the Company will provide water retention services. Payment for these services includes an amount not to exceed $4,000,000 of reimbursement for implementation. In addition, it provides for an annual fixed payment of $12,000,000 for operations and maintenance costs, as long as the project is in compliance with the contract and subject to annual District Board approval of funding. The contract specifies that the District Board has to approve the payments annually and there can be no assurance that it will approve the annual fixed payments. The Florida budget for the state’s 2017/2018 fiscal year was approved and included funding for the Program. Operating expenses were approximately $395,000 and $458,000 for the three months ended December 31, 2017 and 2016, respectively.

~~General and Administrative~~

General and administrative expenses for the three months ended December 31, 2017 totaled approximately $3,886,000 compared to approximately $3,788,000 for the three months ended December 31, 2016. The increase in general and administrative expenses for the three months ended December 31, 2017, as compared to the same period in 2016, was the result of an increase of the following:

~~separation and consulting agreement expenses of approximately $388,000~~

~~an accrual for paid time off of approximately $120,000, and~~

~~audit and tax fees of approximately $100,000.~~

~~These increases were primarily offset by expenses incurred in in the first quarter of December 2016 relating to one-time consulting expenses incurred.~~

~~Other (Expense) Income, net~~

Other expense, net for the three months ended December 31, 2017 and 2016 was approximately $375,000 and approximately$1,981,000, respectively. The decrease in the expense is primarily due to the Company recording a gain on the sale of its office building in Fort Myers, Florida, of approximately $1,800,000. As part of the sale, the Company has entered into a lease arrangement with the buyer for a portion of the office space.

~~Benefit for Income Taxes~~

The benefit for income tax was approximately $12,417,000 and $1,273,000 for the three months ended December 31, 2017 and 2016, respectively. The increase primarily resulted from approximately $11,300,000 in non-cash tax benefit recorded to remeasure the Company's net deferred tax liabilities to the 21% corporate tax rate that was enacted December 22, 2017.

~~Seasonality~~

Historically, the second and third quarters of Alico's fiscal year produce the majority of the Company's annual revenue. Working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. Due to Hurricane Irma, in the first quarter of fiscal 2018 Alico produced a greater percentage of boxes harvested, as compared to the estimated totals for the full harvest season, then in past years. As a result, the working capital requirements may vary from the typical trends we have historically experienced in the current year. Because of the seasonality of the business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

~~Liquidity and Capital Resources~~

~~A comparative balance sheet summary is presented in the following table:~~

(in thousands) December 31, September 30,
2017 2017 Change
Cash and cash equivalents $ 948
$ 3,395
$ (2,447 )
Total current assets $ 66,283
$ 66,489
$ (206 )
Total current liabilities $ 12,292
$ 15,983
$ (3,691 )
Working capital $ 53,991
$ 50,506
$ 3,485
Total assets $ 417,962
$ 419,182
$ (1,220 )
Principal amount of term loans and lines of credit $ 192,481
$ 186,476
$ 6,005
Current ratio 5.39 to 1
4.16 to 1

Management believes that a combination of cash-on-hand, cash generated from operations, assets sales and availability under the Company's lines of credit will provide sufficient liquidity to service the principal and interest payments on its indebtedness and will satisfy working capital requirements and capital expenditures for at least the next twelve months and over the long term. Alico has a $70,000,000 working capital line of credit, of which approximately $52,600,000 is available for general use as of December 31, 2017, and a $25,000,000 revolving line of credit, all of which is available for general use as of December 31, 2017 (see Note 5. “Long-Term Debt and Lines of Credit" to the accompanying Condensed Consolidated Financial Statements). If the Company pursues significant growth opportunities in the future, it could have a material adverse impact on its cash balances and may need to finance such activities by drawing down monies under its lines of credit or by obtaining additional debt or equity financing. There can be no assurance that additional financing will be available to the Company when needed or, if available, that it can be obtained on commercially reasonable terms. Any inability to obtain additional financing could impact Alico's ability to pursue different growth opportunities.

Our level of debt could have important consequences on our business, including, but not limited to, increasing our vulnerability to general adverse economic and industry conditions, limiting the availability of our cash flow to fund future investments, capital expenditures, working capital, business activities and other general corporate requirements and limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate.

~~Net Cash Used In Operating Activities~~

~~The following table details the items contributing to Net Cash Used In Operating Activities for the three months ended December 31, 2017 and 2016:~~

(in thousands) Three Months Ended December 31,
2017 2016 Change
Net income (loss) $ 8,738
$ (1,743 ) $ 10,481
Deferred gain on sale of sugarcane land (141 ) (300 ) 159
Depreciation, depletion and amortization 3,490
3,916
(426 )
Deferred income tax benefit (12,417 ) (1,273 ) (11,144 )
Gain on sale of property and equipment (1,596 ) (205 ) (1,391 )
Non-cash interest expense on deferred gain on sugarcane land 344
356
(12 )
Stock-based compensation expense 423
440
(17 )
Other (44 ) 125
(169 )
Change in working capital (8,486 ) (18,753 ) 10,267
Net cash used in operating activities $ (9,689 ) $ (17,437 ) $ 7,748

The increase in net cash used in operating activities for the three months ended December 31, 2017, as compared to the same period in 2016, was due to a non-cash decrease in deferred tax liabilities, primarily as result of new tax legislation which went into effect on December 22, 2017.

Due to the seasonal nature of Alico's business, working capital requirements are typically greater in the first and fourth quarters of its fiscal year. Cash flows from operating activities typically improve in the second and third fiscal quarters as its citrus crops are harvested.

~~Net Cash Provided By (Used In) Investing Activities~~

~~The following table details the items contributing to Net Cash Provided By (Used In) Investing Activities for the three months ended December 31, 2017 and 2016:~~

(in thousands) Three Months Ended December 31,
2017 2016 Change
Capital expenditures:
   Citrus tree development $ (2,628 ) $ (1,113 ) $ (1,515 )
   Breeding herd purchases (317 ) (91 ) (226 )
   Equipment and other (616 ) (1,070 ) 454
   Other —
(83 ) 83
     Total (3,561 ) (2,357 ) (1,204 )

Proceeds from sale of property and equipment 5,300
—
5,300
Proceeds from sale of assets —
432
(432 )
Other —
115
(115 )
     Net cash provided by (used in) investing activities $ 1,739
$ (1,810 ) $ 3,549

The increase in net cash provided by (used in) investing activities for the three months ended December 31, 2017, as compared to the three months ended December 31, 2016, was primarily due to proceeds received from the sale of Alico's corporate office building in Fort Myers, Florida, for $5,300,000. This increase was partially offset by greater capital expenditures in the three months ended December 31, 2017, as compared to the same period in the prior year.

~~Net Cash Provided By Financing Activities~~

~~The following table details the items contributing to Net Cash Provided by Financing Activities for the three months ended December 31, 2017 and 2016:~~

(in thousands) Three Months Ended December 31,
2017 2016 Change
Repayments on revolving lines of credit $ (10,608 ) $ (5,000 ) $ (5,608 )
Borrowings on revolving lines of credit 17,731
21,945
(4,214 )
Principal payments on term loans (1,118 ) (2,699 ) 1,581
Dividends paid (494 ) (498 ) 4
Capital lease obligation payments (8 ) —
(8 )
Net cash provided by financing activities $ 5,503
$ 13,748
$ (8,245 )

The decrease in net cash provided by financing activities for the three months ended December 31, 2017, as compared to the three months ended December 31, 2016, was primarily due to increased repayments on the revolving line of credit and reduced borrowings on the revolving lines of credit.

~~Alico drew, on a net basis, $7,123,000 on its revolving lines of credit, primarily to fund working capital requirements and investing activities for the three months ended December 31, 2017.~~

The WCLC agreement provides for Rabo to issue up to $20,000,000 in letters of credit on the Company’s behalf. As of December 31, 2017, there was approximately $10,300,000 in outstanding letters of credit which correspondingly reduced Alico's availability under the line of credit.

As a result of Hurricane Irma, the Company experienced fruit loss during September 2017. As discussed in the Alico's Annual Report on Form 10-K for the fiscal year ended September 30, 2017, the Company anticipates revenue and cash flow will be negatively impacted. The Company originally estimated a 40-45% reduction in production as compared to the prior season completed June 2017. Based on the harvesting of fruit through the first quarter of fiscal 2018, the Company still estimates production will be reduced by 40-45%.

~~Purchase Commitments~~

The Company enters into contracts for the purchase of citrus trees during the normal course of its business. As of December 31, 2017, the Company had approximately $1,072,000 relating to outstanding commitments for these purchases, which will be paid upon delivery.

~~Contractual Obligations and Off Balance Sheet Arrangements~~

There have been no material changes ~~during this reporting period~~ to the ~~disclosures set forth~~Company’s Critical Accounting Policies and Estimates from those reflected in ~~Part II, Item 7 in Alico's~~the Company’s 2023 Annual Report on Form ~~10-K for the fiscal year ended September 30, 2017.~~

10-K.

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Item 3.Quantitative and Qualitative Disclosures ~~about~~About Market ~~Risk.~~Risk

Interest Rate Risk - We are subject to interest rate risk from the utilization of financial instruments such as term loan debt and other borrowings. Our primary long-term obligations are fixed rate debts subject to fair value risk due to interest rate fluctuations. See Note 1. “Description of Business and Basis of Presentation” to these Condensed Consolidated Financial Statements.

~~There have been~~We are also subject to interest rate risk on our variable rate debt; however, at December 31, 2023, we had no variable-rate debt outstanding.

In the three months ended December 31, 2023, there were no other material changes ~~during this reporting period in the~~to our quantitative and qualitative disclosures ~~set forth~~about market risk from those discussed in Part II, Item 7A in our Annual Report on Form 10-K for the ~~fiscal~~ year ended September 30, ~~2017, as~~2023, filed with the SEC on December ~~11, 2017.~~6, 2023.

Item 4. Controls and ~~Procedures.~~Procedures


~~(a)~~	~~Evaluation of Disclosure Controls and Procedures.~~

Limitations on effectiveness of controls and procedures

~~Alico's Chief Executive Officer~~In designing and ~~Chief Financial Officer have~~evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Evaluation of Disclosure Controls and Procedures

Management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of ~~the~~our disclosure controls and procedures as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) as of the end of the period covered by this report. Based on this evaluation, Alico's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company'sDecember 31, 2023, our disclosure controls and procedures were ~~effective.~~effective at the reasonable assurance level.


~~(b)~~	~~Changes in Internal Control over Financial Reporting.~~

Changes in Internal Control over Financial Reporting

During the ~~first fiscal~~ quarter ended December 31, ~~2017~~2023 there were no changes in ~~Alico's~~our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, ~~the Company's~~our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal ~~Proceedings.~~Proceedings

From time to time, ~~Alico~~we have been, and may in the future be involved in, litigation relating to claims arising out of ~~its~~our operations in the normal course of business. There are no current legal proceedings to which ~~the Company is~~we are a party or of which any of ~~its~~our property is subject that ~~it believes~~we believe will have a material adverse effect on ~~its~~our financial ~~condition,~~position, results of operations or cash flows. See Note 12. Commitments and Contingencies to the Condensed Consolidated Financial Statements included in this Quarterly Report for further information.

Item 1A.Risk ~~Factors.~~Factors

There have been no material changes into the risk factors set forth in Part 1,I, Item 1A, “Risk Factors” in ~~Alico's~~our Annual Report on Form 10-K for the fiscal year ended September 30, ~~2017,~~2023, as filed with the SEC on December ~~11, 2017.~~6, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of ~~Proceeds.~~

Proceeds

There were no sales of unregistered equity securities during the ~~period.~~period covered by this Quarterly Report.

~~In fiscal year 2017, the Board of Directors authorized the repurchase of up to $7,000,000~~There were no issuer repurchases of the Company’s ~~common stock in two separate authorizations (the "2017 Authorization"). In March 2017, our Board of Directors authorized~~equity securities during the repurchase of up to $5,000,000 of the Company’s common stock beginning March 9, 2017 and continuing through March 9, 2019. In May 2017, our Board of Directors authorized the repurchase of up to an additional $2,000,000 of the Company’s common stock beginning May 24, 2017 and continuing through May 24, 2019. The stock repurchases made underperiod covered by this ~~repurchase were made through open market transactions at times and in such amounts as the Company’s broker determined subject to the provisions of SEC Rule 10b-18.~~Quarterly Report.

For the three months ended December 31, 2017, the Company did not purchase any shares in accordance with the 2017 Authorization and has 477,500 shares available to purchase in accordance with the 2017 Authorization.

~~Item~~Item 3. Defaults Upon Senior ~~Securities.~~Securities

None.

Item 4. Mine Safety ~~Disclosure.~~Disclosure

Not Applicable.

Item 5. Other ~~Information.~~Information

a)None.

b)None.

c)During the three months ended December 31, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Table of Contents

Item 6. ~~Exhibits.~~ Exhibits

Exhibit Number

Exhibit Description

Form

File No.

Exhibit

Filing Date

Filed/Furnished Herewith

3.1

Restated Certificate of Incorporation, dated February 17, 1972

10-K

00-000261

3.1

12/11/2017

3.2

Certificate of Amendment to Certificate of Incorporation, dated January 7, 1974

S-8

333-130575

4.2

12/21/2005

3.3

Amendment to Articles of Incorporation, dated January 14, 1987

S-8

333-130575

4.3

12/21/2005

3.4

Amendment to Articles of Incorporation, dated December 27, 1988

S-8

333-130575

4.4

12/21/2005

3.5

Second Amended By-Laws of Alico, Inc., amended and restated

8-K

000-00261

3.6

1/15/2021

10.1

Second Renewal Promissory Note by Alico, Inc., Alico-Agri, Ltd., Alico Plant World, L.L.C., Alico Fruit Company, LLC, Alico Land Development Inc., and Alico Citrus Nursery, LLC in favor of Rabo Agrifinance, LLC (f/k/a Rabo Agrifinance, Inc.) dated September 6, 2017

10-K

000-00261

10.39

12/11/2017

10.2

Amended and Restated Employment Agreement between Alico, Inc. and Mr. Kiernan, dated as of April 1, 2022

8-K

000-00261

10.1

4/5/2022

10.3

Annual Performance and Long-Term Bonus Agreement between Alico, Inc., and Mr. Kiernan, dated as of April 1, 2022

8-K

000-00261

10.2

4/5/2022

10.4

Fourteenth Amendment to Credit Agreement by and among Alico, Inc., Alico-Agri, Ltd., Alico Plant World, L.L.C., Alico Fruit Company, LLC, Alico Land Development Inc., Alico Citrus Nursery, LLC, and Rabo Agrifinance LLC (f/k/a Rabo Agrifinance, Inc.) dated December 15, 2023

8-K

000-00261

10.1

12/19/2023

31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification

32.1

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350

32.2

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350

101.INS

Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

Table of Contents

101.DEF

~~Exhibit~~

~~Number~~

~~Exhibit Index~~

~~3.1~~

~~Restated Certificate of Incorporation, Dated February 17, 1972 (incorporated by reference to Exhibit 3.1 of the Company's Annual Report on Form 10-K filed with the Commission on December 11, 2017)~~

~~3.2~~

Certificate of Amendment to Certificate of Incorporation, Dated January 14, 1974 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)

~~3.3~~

~~Amendment to Articles of Incorporation, Dated January 14, 1987 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)~~

~~3.4~~

~~Amendment to Articles of Incorporation, Dated December 27, 1988 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)~~

~~3.5~~

~~By-Laws of Alico, Inc., amended and restated (Incorporated by reference to Exhibit 3.1 of the Company’s current report on Form 8-K, filed with the Commission on January 25, 2013)~~

~~31.1~~

~~Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification~~

~~31.2~~

~~Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification~~

~~32.1~~

~~Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350~~

~~32.2~~

~~Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350~~

~~101~~

~~101.INS~~

~~XBRL Instance Document~~

~~101.SCH~~

Inline XBRL Taxonomy Extension ~~Schema Document~~

~~101.CAL~~

~~XBRL Taxonomy Calculation Linkbase Document~~

~~101.DEF~~

~~XBRL Taxonomy~~ Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Filed herewith.

In accordance with Rule 406T of Regulation S-T, these XBRL (eXtensible Business Reporting Language) documents are furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.Furnished herewith.

Table of Contents

SIGNATURES

Pursuant to the requirements ~~of Section 13 or 15(d)~~ of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	ALICO, INC. (Registrant)

February 7, 2024			By:	/s/ John E. Kiernan
~~February 6, 2018~~			~~By:~~	~~/s/ Remy W. Trafelet~~ John E. Kiernan
				~~Remy W. Trafelet~~
		President and Chief Executive Officer
				(Principal Executive Officer)


February 7, 2024		By:	/s/ Bradley Heine
~~February 6, 2018~~		~~By:~~	~~/s/ John E. Kiernan~~ Bradley Heine
			~~John E. Kiernan~~
	~~Executive Vice President and~~ Chief Financial Officer
			(Principal Financial and Accounting Officer)

3031


		þ
þ	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

			For the Quarterly Period Ended December 31, ~~2017~~2023

			or
			or


		o
¨	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	~~For the transition period~~
	~~from____________________~~		~~to_________________________~~


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ALCO	Nasdaq Global Select Market


Large Accelerated Filer			o		Accelerated Filer		þ

~~Large accelerated filer~~	¨	~~Accelerated filer~~	þ
Non-accelerated filer	¨o			Smaller Reporting Company		¨þ
Emerging Growth Company			¨o



Part I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements			1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			1718
Item 3. Quantitative and Qualitative Disclosures About Market Risk			27
Item 4. Controls and Procedures			27
Part II - OTHER INFORMATION
Item 1. Legal Proceedings			28
Item 1A. Risk Factors			28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			28
Item 3. Defaults Upon Senior Securities			28
Item 4. Mine Safety ~~Disclosures~~Disclosure			28
Item 5. Other Information			28
Item 6. Exhibits			29
Signatures			3031



~~Alico, Inc.~~ALICO, INC.
(Exact name of registrant as specified in its charter)



~~239-226-2000~~(239) 226-2000
(Registrant’s telephone number, including area code)


Not Applicable
(Former name, former address and former fiscal year, if changed since last report)



	~~Page~~
Condensed Consolidated Balance Sheets as of December 31, ~~2017~~2023 (Unaudited) and September 30, ~~2017~~2023		1
Condensed Consolidated Statements of Operations for the three months ended December 31, ~~2017~~2023 and ~~2016~~2022 (Unaudited)		2
Condensed Consolidated Statements of Changes in Equity for the three months ended December 31, 2023 and 2022 (Unaudited)		3
Condensed Consolidated Statements of Cash Flows for the three months ended December 31, ~~2017~~2023 and ~~2016~~2022 (Unaudited)		34
Notes to Condensed Consolidated Financial Statements (Unaudited)		45



	December 31, 2017				September 30, 2017
	Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net
	(in thousands)

Long-term debt, net of current portion:
Met Fixed-Rate Term Loans	$	99,062	$	924	$	99,062	$	954
Met Variable-Rate Term Loans	48,876		425		49,594		439
Met Citree Term Loan	5,000		48		5,000		49
Pru Loans A & B	22,740		253		23,030		258
Pru Loan E	4,840		23		4,895		25
Pru Loan F	4,840		42		4,895		42
	185,358		1,715		186,476		1,767
Less current portion	4,575		—		4,550		—
Long-term debt	$	180,783	$	1,715	$	181,926	$	1,767



(in thousands except per share amounts)
	Three Months Ended December 31,
	2017		2016

Net income (loss) attributable to Alico, Inc. common stockholders	$	8,746	$	(1,735	)

Weighted average number of common shares outstanding - basic	8,245		8,324
Dilutive effect of equity-based awards	119		—
Weighted average number of common shares outstanding - diluted	8,364		8,324

Net income (loss) per common shares attributable to Alico, Inc. common stockholders:
Basic	$	1.06	$	(0.21	)
Diluted	$	1.05	$	(0.21	)


(in thousands)	Three Months Ended December 31,
Operating lease components		2023		2022
Operating leases costs recorded in general and administrative expenses		$	37	$	30


	December 31, 2023
Weighted-average remaining lease term	1.6 years
Weighted-average discount rate	5.44	%


Restricted Stock Awards	Shares	Weighted- Average Grant Date Fair Value
Outstanding at September 30, 2023	17,540	$	37.82
Granted	—	—
Vested	—	—
Forfeited	(5)	32.30
Outstanding at December 31, 2023 (a)	17,535	$	37.82


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value

Vested and outstanding – December 31, 2023	38,000	$	33.75	3.0	—



~~Expected Volatility~~	~~32.19~~	%
~~Expected Term (in years)~~	~~2.6 - 4.0~~
~~Risk Free Rate~~	~~24.5~~	%



(in thousands, except share amounts)
	Shares		Cost
Balance as of September 30, 2017	177,315		$	6,502
Issued to Employees and Directors	(10,527	)	(227		)

Balance as of December 31, 2017	166,788		$	6,275



(in thousands)	Three Months Ended
	December 31,						Change
	2017			2016			$			%
Operating revenues:
Alico Citrus	$	17,079		$	16,877		$	202		1.2	%
Conservation and Environmental Resources	363			301			62			20.6	%
Other Operations	91			267			(176		)	(65.9	)%
Total operating revenues	17,533			17,445			88			0.5	%

Gross profit (loss):
Alico Citrus	784			2,792			(2,008		)	(71.9	)%
Conservation and Environmental Resources	(234		)	(213		)	(21		)	9.9	%
Other Operations	32			174			(142		)	(81.6	)%
Total gross profit	582			2,753			(2,171		)	(78.9	)%

General and administrative expenses	3,886			3,788			98			2.6	%
Loss from operations	(3,304		)	(1,035		)	(2,269		)	219.2	%
Total other expense, net	(375		)	(1,981		)	1,606			(81.1	)%
Loss before income taxes	(3,679		)	(3,016		)	(663		)	22.0	%
Income tax benefit	(12,417		)	(1,273		)	(11,144		)	NM
Net income (loss)	8,738			(1,743		)	10,481			NM
Net loss attributable to noncontrolling interests	8			8			—			NM
Net income (loss) attributable to Alico, Inc. common stockholders	$	8,746		$	(1,735	)	$	10,481		NM



(in thousands, except per pound data)
	Three Months Ended December 31,				Change
	2017		2016		$			%
Revenue From:
Sale of Calves	$	57	$	20	$	37		NM
Land Leasing	247		230		17			7.4	%
Other	59		51		8			15.7	%
Total	$	363	$	301	$	62		20.6	%
Pounds Sold:
Calves	49		16		33			NM
Price Per Pound:
Calves	$	1.17	$	1.22	$	(0.05	)	(4.1	)%
Operating Expenses:
Cost of Calves Sold	$	69	$	24	$	45		NM
Land Leasing Expenses	133		32		101			NM
Water Conservation	395		458		(63		)	(13.7	)%
Total	$	597	$	514	$	83		16.1	%