John Mills | ICR |
John Kiernan | President and CEO |
Rich Rallo | CFO |
Welcome to Alico's Fourth Quarter and Full Year 2020 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. I would like to now turn the call over to your host, Mr. John Mills with ICR.
Thank you, Darryl. you year us XXXX thank quarter Alico's and full and conference morning, for for joining fourth Good call.
Earlier Rallo, On Kiernan, the announcing fiscal Financial its Rich quarter the press XXXX. year President John the Officer. Chief and and Chief results issued call Executive Officer; release today, a this morning, are ended fourth XX, Company for and September
website is at chance on available had This will you've a to of view the release, replay portion not being Company's the on Alico's is it alicoinc.com. Investor call well. a webcast, Relations If the website and as available be
that reports we Form on mentioned begin, cause in differ to forward-looking from detailed Such we in amendments as contribute update prepared obligation those are subsequently that actual remarks those remind contain materially implied differences in or cause expressed would factors Before to factors everyone the risks and the Important statements that release. such annual uncertainties the and these SEC X-K, by on include made except filed the Company's XX-K, on may or to with any like the statements to quarterly XX-Q, could reports Form risks, revise statements. subject results statements. forward-looking to today's or current Company today other on call, no undertakes The reports required earnings Form law. and
financial discuss including EBITDA. also During and will non-GAAP measures, this the call, Company EBITDA adjusted
and Kiernan. over to like earlier turn call For refer Company's the that, this President more to issued press morning. company's on With CEO, to details release I'd please John these the Mr. the measures,
In bit more our transform this this years everyone, us Alico's of ago help Thank tough context. for Alico you, rebounded and to our company. from a of modernization our operational joined has resources to together, a inaugural purchasing into than fees, our year. crop is early programs, program earnings called call scrutinized and competitive a joining procurement Alico returns. land citrus our morning. well call optimize every and more for including aspect implemented operations, asset initiative earnings improve with comprehensive structures, to a like cost I efficiencies X.X, five I'd and corporate costs, professional This And Alico XXXX, start human and you, John. we Since operational key efficiency. first thank
would to after executing competitive on reduced XXXX, this end changes these initiatives, of are Florida, the low-cost growers in United in of leader producer we the in levels. and these to focus on this citrus citrus of result initiative, cost generated position decreased Today, one our we assets, our of return, costs identified years and represented We Alico that not into a non-performing lines business businesses and outsourced also - result citrus operating low to underperforming enterprise one profitable. costs were that and our than $XX We and We million, of which more we as leading improving industry. had a eliminated divested operating The global the citrus three largest Citrus. assets. rates maintain production, affect was not efficient XX% completed reduction, negatively a we the believed certain States. the by continue combine our high-quality, as of two that our legacy began substantially operation and concentrate of At parts
that to have our Alico on program, for unlocking Alico and X.X to our thrives While for the costs to we and shareholders continued controlling ensure Modernization additional our we decades of legacy work have come. under completed value focus managing
that. of we course XXXX, the fiscal year Over just did
XXXX. for to the This been as quarterly value. history have flow enhance reflect decades our we of of the consistently million, shareholder shareholders has from confidence dividends, reinforced by fiscal Directors to XX% another X.XX:X paying that of our support to above a these uninterrupted. of Board $X.X by beyond year common dividend long-term. cash believe our we quarter over Alico's increased Our done $XX.X our Directors' to improved effective Alico's and first strategy our strategy raising principal developed XXX% Company dividend has that is ratio past share, utilized common $X.XX mandatory dividend approximately Board $X.XX continued higher share. to per Alico's of five Directors announced by of of today, And increases return the debt-to-equity We per debt, ago. the and year, Board successive repaid We the million Last of have X.XX:X we required payments the of level capital for will business
principal past the net five debt by making $XX over payments XX%, our million. years, Over we of reduced have
Management XX,XXX we under approximately for the project, we been an September reinvested evaluate program, acres. our September, investors. Because Land this we The Alico sold assets, sold rates land and strategic longer dispersed acres Florida have million land opportunistically sold as continue in of ranch have to and our for generate our acres to Operations. to renamed as of our the completed well year, as aggregate to some over permit returns unit, and no second would business primary water approximately in for fiscal sold shareholders. under returned XX,XXX Florida We them management prices off non-citrus pristine to which cash have business, Forever critical those State premium recently, at of Most and business, suspended marking those our off proceeds of flow, and activities we sale program, $XX.X Other is return the Ranch for past our this the with that in acres approval
parcels future. opportunities of real anticipate additional sales Ranch the continue the smaller estate of We and evaluate to near Alico in
groves. $X citrus citrus More a own at $XX.XX citrus from are further acres using two We the state, sale. October close XXX proceeds of land citrus significantly, of defer and year. and groves, continue price grove that XXXX, were purchase from the economies to million. acres May in and Alico assess to other well-maintained we our we X,XXX to operations leverage for citrus adjacent back In we will million grove of by announced opportunities almost investment approximately of this acres, to gain us allow and acquire attractive grove able scale acquisitions this XXXX, land acquired acres one to that And sale office. to believe fiscal are ranch the These new prices, purchased to which existing our acquired we're of for
our remain acquisitions within excess Additional cash option strategy. an deployment
strategically-located citrus as citrus a selective we that shareholders. two act May In deliver leader, with so competitive operate low-cost, Tropicana. only seek However, we'll returns agreements and XXXX, and we on largest can and supply to will high-producing new be to fruit disciplined highly our well-maintained, continue announced customer, and four-year well-sized, for we properties,
experienced This years, respectful all seen Irma, our of market our especially agreement least X.X top-XX Companies, As and us for commit market and These because third-party combined business Company at Citrus we which have year, for grower. harvest haul with allows was in caretaking years, one This also These protections smaller certain Hurricane recent a services our within result supply grove Tropicana for fiscal is such arrangement, largest citrus existing the program. have beneficial to Tropicana agreement business smaller scale many customers. Collier Florida the was continuing Alico on next decades expired provide price Tropicana a fruit to are another that against efficiencies many relationship And after struck competitive of knowledge, which management realize leadership enable the and pricing the we the which operational citrus in will through professional been Florida as new in mutually parties. by refined replaced has margins for natural last approximately grove Alico last next certain the we contracts, X,XXX with provisions a citrus both significant provides owned developed within an long-term this us long-term substantially August for services, to position XXXX, responsibilities a XXXX. contracts, Alico's industry, Modernization September we protect In for industry for citrus conducting the there terms agreements, several in substantially, that the which to this dips, acres albeit, increase four year. which when a monetize of for extension years. of years, Barron including announced
we the our can to companies value. existing by groves good over on operations, as this fiscal fruit a add significant but who We have groves, new economic next acres, manage will acres our all look management are of X,XXX out-of-pocket paid we top own manage these expenses. cost We citrus just segment focusing fee where near sales, net XX,XXX size on and expand and with year including business
the of our to strategic X.X decision growth level invest our of years. addition level we've replace executed In business this increase planting of has of year, more inorganic heavily continued than the our in has trees the organic new million for to Hurricane substantially initiatives those groves, in tree planted been This citrus density normal growth. than Alico past four also Because Irma, lost over attrition. and trees higher to
of We evaluate after to trees after to recent tree those plantings, tree around the next the forward. seven plantings density planting, the groves fruit-bearing years positive moving begin We continue to seeing approximately and anticipate years. our years citrus couple impact will appropriate four determine throughout the planting. Typically, become in peak and of eight
fiscal Now, year discuss briefly, to results. our
lowest results decrease We announced, pressure, years. fall and at their to price with solid fiscal by $X.XX past in our industry, a $X.XX citrus per rest level market We, our experienced average fiscal with year year. previously were also expected, in of citrus production. from the Florida blended prices fiscal pounds pricing the along the XX impacted saw this year As by last XX%, negatively
XXXX protections for in long-term their contracts, fiscal are The However, fortunate that were our pricing juice downward orange more has a competitors. as we This ended but more focus March consumption rigorous this period many indirectly. than on The suspect pressure XX, XX% XXXX. We prior not more for data, for Nielsen sustained Well, increased the that spending health will for inventory compared increase panic demand NFC, our expected of Alico? the for at not next have surge NFC home persist strong We demand juice NFC Not-from-Concentrate this reasons that reflect of as which ended levels consumers - - has in consumption. of provided orange well do XX-week year. reports increased latest in due cost because year, to level September in Consumption believe approximately driven pricing Florida and case impact and been suspect year. has juice are by the abated. the since a October remained orange next in enjoying an wellness, well increase with the the four-week of buying, breakfast. is rather XX, pricing not fortunate down bode period time XX% the we citrus How citrus we and our on in market does to at XXXX. controls supply processors, increasing has
to Additionally, utilize year. and to more to anywhere which to turn that, year, to are call of forecasted XX% detailed be be prior exporters during increase Mexico's the down one structures beginning XX% very that the lowest harvested because strong realize improved harvested supply Alico will flow rise, down to I'll strong harvest results. our discuss significantly crop, for in and the cash previous cost our down is to our year. the higher just And fruit have the shifting season of be contracts next of Mexico, long-term for from to fiscal and top to in is this being XX% range Company. over Florida, expected our well-positioned Brazil's the forecasted the which is from Brazil from be fruit prices margins the citrus financial industry currently With the marketing the we the Company anticipate these dynamics from crop, prior substantially - year. benefit as pricing from value be both is Rich is in for positioned citrus place. long-term citrus, With Alico to into we
everyone. you, and good John, Thank morning,
fiscal of would of seasonality majority and results As as on profit today, remind our this flows of of and year, full-year business. typically years, to our on earnings quarters in in the second The our primarily our focus are of I is majority and our of recognized well. third we is the will cash harvested and the this many crop call our citrus everyone first the business. second third in Based quarters aspect, like
previous year Citrus were compared $XX.X $XX.X the XXXX, revenues fiscal operating to year. year. the million fiscal $XXX million total previous $XXX.X to compared was for million fiscal the million For revenues for
XXXX, in the processed the fiscal prior a result of decrease For X.X current we fruit boxes the and of fruit, fruit fiscal prior the year ended from The September harvest decrease X.X% compared approximately the XX, to box in greater harvested of harvest as year. size season. was drop production season million smaller
continued by expected season. the John, The the at fiscal inflow processors greater imported previously price XXXX-XXXX solids was $X.XX harvest Florida to the lower the to year. levels orange was to mentioned of primarily impacted in from harvest current though than the juice, beginning As of average prior $X.XX crop decrease also high citrus being fiscal levels juice per by The decreased Florida XXXX-XXXX at price the the due blended year. than prior pound citrus at in season, year leading inventory in the
a expenses decrease additional $X.X million during the year commenced. processed to September proceeds, as expenses during recorded As in ended by XXXX, we operating year fiscal us Grant, the which This federal Company of pricing primarily Irma, fiscal year we increase due resulting turn to this XXXX the and was boxes in year respectively. into in the not-from-concentrate Partially for Hurricane expenses consumption in fewer fiscal million. XXXX fiscal XXXX are the relief look offsetting $X during Florida Block recorded levels. as Recovery do in in the fiscal Company which season, XXXX, is as has orange of costs year year. reduction to inventory The relating federal XXXX upcoming as for million compared The fiscal to consumers, ahead the Company reduction compared as juice relates well-positioned being a XXXX. harvested expense Services in XXXX, compared ended an approximately recently proceeds prior harvest trend retail through being receiving Company which received Management period increased lower fiscal September a by to the the also operating of operating and year The hauling of $XX.X less Citrus of and result XX, inventory recorded years harvest relief expect Grove the to approximately XX, same improvement
harvest reimbursed XXXX, Regarding X,XXX Grove approximately Company the Collier for July haul Management expense, provide with of this fee costs management incurred a is citrus an the Services Barron covered executed based acres. to to all to agreement receive also agreement, in terms Companies and grove caretaking agreement. Under to under services, services for Alico this and providing management these and acres related is Collier be by Barron on
these As and will in both provide management caretaking we revenues we citrus increase an services, expenses. grove be recording
the we this and $X operating million to activities believe of regard management materially $X.X For expenses including by revenue, past the to were September the Company arrangement. it out and that of recorded to delivering the the were year. fee, With in relating XXXX, fourth operating no approximately impacted quarter not harvesting there the current ended XX, million processors is to disruptions pandemic, fruit point COVID-XX pandemic, this important approximately our
to COVID-XX. has not the Company to-date, any challenges operations from its experienced material Additionally,
Operations, an oil a a small and other Water income was This farm revenue mine, leases party percentage which a grazing third Other extraction Resources and and Our expenses. leasing rights, Management operating Operations, miscellaneous leases, segment rights and comprised aggregate lease of income. Other includes hunting a Land of to leases, previously our lease, from called of
lease in permit to segment longer for the The the the a to no of due renamed for decreased expenses This to being were further year which in relating acreage primarily was due this XX% fiscal relating fees million were XXXX. Other storage XXXX compared September to pursue incurred for XX, year litigation in fiscal prior a acreage dispersed and was ended General project, included litigation cattle lease. this being no to to due this expenses Management and approximately ended reduction compared relating XX, a professional components of ended Other XXXX. approval Land year, million ended the fiscal to activities $XX.X fiscal for agreement, $XX sold year certain decision XX, settled, the matter the year a Management reduction XXXX. corporate the of and September during decreased fiscal this September acres, water XX, leased Land to September under million administrative for XXXX and grazing in reflect to result the as to slightly XXXX. to a year Revenues Company September decrease The the year incurred this leased primarily As matter Operations better $X.X Operations segment. was
of in option Partially were of year result of in benefit in fees stock December the rent, XXXX. of deferred settlement, from fees in senior Additionally, stock recognized expenses expense from approximately increase and XXXX, and as result being in reduction recognized stock in expense reduction XX, settled recorded approximately ended expense the September a former and and September one $XXX,XXX a income respectively. fiscal his and approximately in XX, senior Directors an XXXX reductions accelerated and XXXX its The $XX.X decreases increase managers compensation assets of Director part management, aggregating in fiscal year to insurance to XX, compared as sale for compensation fiscal part a the the in equipment, and September XXXX, million as of real the options on $XX.X senior due bonuses Florida. fiscal estate, years smaller in retirement certain gain in approximately recorded In land offsetting XXXX. the relating in we $XXX,XXX decreases primarily of was resigning this XXXX $XXX,XXX. year The XXXX, a held property was reductions expense of West approximately $X of of generated State approximately September was for XX, recording other also to on a primarily and to income consulting, year granted and stock fiscal September sale Ranch year Other million, as one-time of decrease a Board other of approximately these consulting the the of higher Officers Company to approximately executive as XX, $XXX,XXX year of sale XXXX, $X and a for during $XXX,XXX the fiscal a forfeiting XXXX, XXXX gain to which year fiscal related Company fiscal ended fiscal the approximately $XXX,XXX. a million separation in litigation approximately year pension our XXXX Company payroll ended of million, plan of September
the the million. fiscal ended year approximately recorded For a September $XX.X gain Company XXXX, XX, of
recognized a $X.X of on debt its reduction approximately the long-term making its of reduction in interest of attributable result Company expense the principal rates. to obligations a million debt interest approximately reduction payments, a prepaying Additionally, million as in and its $X.X mandatory
Part Part program million finalized. received approximately under ended we and which received the to proceeds this X September Company of program. $X.X September As during Irma X Florida To XX, be sustained The represented damage Part $XX.X amount on fiscal XXXX. of of date, X to the relating in the Recovery yet the this the Hurricane Grant to under received the million be program additional has of is under approximately Block mentioned, reimbursements timing and Citrus proceeds program, year XXXX,
XX, $XX September to net for compared September ended $XX the common of Company's line guidance year was income to September net XX, For stockholders income of $XX.X attributable ended Alico in stockholders fiscal $XX.X for income to net attributable XXXX. income million The the Company reported ended XXXX, XX, to Alico common of the net million. approximately with fiscal approximately million most fiscal the year year million the recent XXXX
line XXXX, Company's of with XX, $XX.X fiscal the $XX.X million the million. EBTIDA of the million ended September $XX.X EBITDA Company's year for was Additionally, guidance in to
in to stronger expect We XXXX. and continue show strength fiscal balance year flows our sheet cash in
XXXX Our ratio. X.X:X working $XX.X was a representing million, at XX, capital September
and three In the our addition, In X.XX:X, years. X:X we steady have the improvement experienced respectively. XXXX XXXX, ratio for past debt-to-equity ratios in and XXXX, a were X.XX:X,
the part $X to approximately portion mentioned, acres, which State X,XXX previously acquisition to a the in to million Florida of structured purchase, October to XXXX of fund the on was of proceeds related the allow us the our As we of sale. sale XX,XXX XXXX approximately of gain in from to gross taxes September defer the of utilized acres
dividend to today dividend XXXX. announced of to of per our be also XX to compared share $X.XX stockholders of The a share $X.XX our We $X.XX December doubling per share. record as paid per will
and As the million XX, now debt, discuss $XXX.X lines would Company XXXX, year. net fiscal credit, of of to had approximately to term period back like restricted and for to from John XXXX the I pass the outlook. September equivalents cash cash, same million, including year down call of cash our $XXX.X of last
Rich. strong and the Alico $XX for low-cost advantages. and producer industry. within believe leader into citrus billion that Company huge growth with have well-positioned We margins, this Florida are scale cost the you, we transformed is with the long-term Thank industry in a global
management an capital stable and experienced, to our the focused business growing have team, returning shareholders. We on
by We more density years, growth groves four the than we strategic to organic years. next have increase our our past fruit-bearing the heavily couple invested planting to trees be in of through of business expect new X.X citrus the fuel in the decision million to which over
we when fueling groves at a also inorganically deploying price. neighboring capital an by We acquire constantly are attractive opportunities evaluating citrus acquisition well-managed strategic see and to thoughtfully growth
the the net management to the expanded and of we EBITDA as fee-generating with upcoming income, to EBITDA, our businesses, you lines fiscal for our year in service. provide third-party growth adjusted have our along increased saw with structure of The fiscal past will some control pricing we as next related income, have into year. in allow adjusted Additionally, this of year, rebound confidence us the of net fiscal guidance market cost
value that net $X.X million $X.X and million income $XX million. of to million; not sales $XX.X decide adjusted $XX Alico a and projecting EBITDA do we high-margin for million update for our event million; shareholders, asset management and by believe between realized, $XX million; thanking projections are to leader. employees gains now the net Company for are work income believe our any may million adjusted These to projections. have fiscal We and in asset of include thanking from dedicated their into quarter call these to sales. EBITDA We low-cost, first between phone Alico Alico. year In We past unlocking $X.X being XXX $XX that built speaking results continued earnings so and of to again with everyone accomplishments long-term support and incredible our February. the the this and end everyone our demonstrate like or to our their look commitment citrus on on fiscal year forward to dedicated today team I'd our
lines disconnect this Thank participation you. That does great you and may a today’s time. conclude your have day. conference. your at for you Thank