ALCO - Earnings call 1 2024

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Operator

Welcome to Alico's First Quarter 2024 Earnings Conference Call. [Operator Instructions] And as a reminder, today's conference is being recorded.

Last night, the company issued a press release announcing its results for the first quarter ended December 31, 2023.

If you have not had the chance to view the release, it is available on the Investor Relations portion of the company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well.

would contain remind forward-looking we prepared that begin, today remarks statements. we like everyone to the Before Such statements from are factors implied may subject these to risks, actual in to uncertainties results differ materially statements. those or cause expressed and other thereto obligation to XX-K, could in risk X-K current quarterly on reports contribute company's annual to and filed call any SEC no release. The differences those company Form forward-looking in the include Form mentioned Important factors XX-Q except or by reports the today's such earnings update that with law. the reports subsequently statements the and cause required details the on on and revise or Form undertakes made as

debt. the discuss will also call, including non-GAAP this EBITDA, company and measures During net financial adjusted EBITDA

please the conference CEO, over President For the today. With Mr. Please these to John earlier issued company's ahead. details company's call turn I release on would to Kiernan. and that, measures, refer to the like press more go

John Kiernan

you, us ], this Kelsey [ XXXX First morning. for Call for everyone, and you, Earnings Quarter Alico's Thank thank joining

plus this portion $XX.X and million the from A interest. our proceeds. previously XX, the of to million XXXX, gross remainder, Alico line the rate The a and State in December of with credit the of closed we sell cash. Alico Florida of loans sale repay $XX.X XX,XXX Ranch working on term XX, to As used contract of were the the on signed sale accrued remaining proceeds September we for outstanding variable capital on balance retained XXXX, on announced, acres in Metlife

in resulting XXXX. approximately in impact of harvest of mid-season and of season continued that the was Ian. the an million early by We the mid-season believe first write-down inventory year and box quarter affected early disappointing Hurricane were fiscal $XX.X our from production Results this

use Field week or cautiously to harvesting XXXX, recovery. so. In of will another that our is begin from received a Trial That and in an greening funding fruit expected harvest XX% the January of Foundation Valencia effect rate trunk of begin trees crop, we'll with the the would soon expectation of to company treated injection the drop. are which the stronger in We our year, support Research over beginning optimistic Last show that of with rate quality January and oxytetracycline to Citrus citrus our were combat OTC trees. producing the XXXX, in decrease fruit improve

million remains challenging in almost the industry. to total reduce of of detailed impact our recover events. With of and to remaining over expect XXXX. published one in more the of matures recent $XX is by as while debt line comprised million, Also Brad Ranch, to November credit of November that that which highlighting priorities. We capital of on full a XXXX balance acreage measurable Alico more the of approximately credit line, $XX December provide undrawn million XX, these We which not social our on progress decrease -- of turn results. I we XXXX our our to the full XX, from OTC a to Because matures a in our discuss our we call our to sheet of company debt from citrus the net operate credit, continue of environmental, case be greatest representing available prior that believe the the facilities believe treatments sustainability and last working these will government liquidity, net weather Annual of until as revolving month, XXXX we Alico September million Sustainability importantly, with benefits credit, with our We that, the which and debt in undrawn completed. governance our in XX% well have each decrease and is harvest have total to XXXX. Even $XX as strengths in of debt of will we extent $XX the full of approach Report sale ample the XX% been continues able $XX year our million XXXX-'XX our financial by

Bradley Heine

revenue results. The to year full primarily our are our the recover morning, XXXX, XX, XX.X% cash by Thank in the the Ian. the Hurricane process the we you, was December in second XXXX, the first is to John. due to from quarter the pound citrus XX, compared production, of and that X quarters as of also flow of like and months for majority recognized results increase our everyone quarters. XX.X% $X.X increase of Good is ended seasonal, the fiscal everyone. driven with to X I'd solids, a the is second began harvested our majority third and profit remind of million and indicative for in in a not third Quarterly box business year, crop in increase as ended December effects months

recover food the or production Our drop Ian by for ended of the XX, hurricane to caused production impact fruit adversely XXXX, impacted was Hurricane XXXX harvest, more we pre levels. as expected September take 'XX. the another in months the growth year initially the although for a December hurricane fiscal And to the X season impacted result of

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

citrus its $X.X of ended result fiscal last respectively. increase approximately relates installment to $XX.X billion expenses XXXX, to and which the X block real to Hurricane and primarily and operating and increase acres the $XX.X the XX, and activities XXXX, were costs to of the is due million, in related in in $X was XXXX, ended storm, Total estate The Florida of to a the early adjustment million million. operating expenses we as primarily significantly driven million as sale X million $XX.X increase net increased crop our due million reduce to December and inventory principally the were was received box and of production expenses XX,XXX and quarter quarters Ian an $XX.X XX, Florida. and lower-than-anticipated Alico the XX, increase million, $X.X Irma. General program respectively. the months for The for and from expense, respectively. for harvest to $X.X $X.X the the December administrative salary to $X.X was XXXX, of due increase effects and wages entitlement mid-season well primarily income our Other XXXX, an of for the value XXXX ended million the fees of our as XXXX ongoing box December consulting net, December Hurricane XX, first production all by ended realizable and XXXX, months in million State of The Ranch grant

For to loss XX, the XXXX, Ranch. I'll the the the income the for of sale -- XX, common back common fiscal reported the John. of to ended quarter XXXX, first first Alico to stockholders Alico attributable company ended $X.X $XX.X of aforementioned driven now pass December call December to quarter attributable by a net million fiscal compared net million,

John Kiernan

Brad. Thanks,

we will was fruit season. term. experience new improvement treatment, are because believe that remain plan of our XXX the We the recent over part stronger combined harvest cautiously OTC and Ian. Alico trees, significant of management. with slow Since remain this leader a land long XXXX, all Hurricane Although Hurricane plantings was planted therapy harvest effects to increase Florida a season in optimistic to in of believe our in Florida and years XXXX the year to the the Ian, our Valencia upcoming fiscal tree the million apply and show we start, of industry has next a in support harvest we for to practices, of consistent we producing first over from should off substantially caretaking that agriculture which as that maturing trees committed citrus in X.X

create Alico through enhanced best comes our value land active use benefits to agricultural is investment strive the highest for with that all conventional In investors to addition, and the determine of continuing provide our to We management. our and properties of to evaluate optionality shareholders. long-term with the stability

that, line [ up analysts. the ]? industry questions open now Kelsey with from to we'll And

Operator

[Operator Instructions] And your Sweeney Capital. Gerry first ROTH question from comes from

Gerard Sweeney

harvest. you've in harvest to the Obviously, it up the to said about talk take for to years past, could rebound. Wanted the X

structural is that damage this take So there -- hurricane just just totally talked this to orchards. structural longer -- there talk in is that a have about this to was there my trees the past but wanted expectations, been below maybe may reduce some trees. years? But and output? damage from rebound a X trees no little concern maybe that actual ag. would curious, any Or the the understandable We've that's the which bit going to to Is with

John Kiernan

Thanks, That's great a question. Gerry.

quickly As of effects a do that quickly amount growth And in structural they there suffering our that trees. the not that as we It's are out. compared as little the directly think to hours XXXX. affected that in longer trees as think as this we they years in they're we to We definitely that trees entire to XXXX rebounded robust flag in peers storm rebound an trees sustained come that is back that few reported Hurricane well are back why portfolio. from permanent think our that storm we We lost when not think did X previously. hit. We previous themselves. did the seeing bit could don't that of not majority to trees the as taking clear permanent we did think back our winds a relatively to back. just hour of take for XXXX, XXX-mile damage up stressed it the But damage have We a the Irma is to attributable

Gerard Sweeney

crop about I rest administrating OTC about Got [ then XX% treated it. with think, ] the it. been of to you your orchards, and And your believe, of I it has talked

-- have the early yet? early the obviously. as the down a you're administered treated to difference for harvest can on seeing sure -- in your results the to -- is the trees mids I been curious Now OTC know I opposed was see if were mids, But was a given not you that between where production just and difference

John Kiernan

the Xx season, much comparable trees we we're applied did so sample to as last many about to as a the noticeable season mids, the by year groups was year control Last early improvement first January. We approved it obviously. mids. definitely saw harvest question, from the past piloted FDA size we of trouble little a to larger last once applications we quantifying kind group. the for it. treatment we just But early this the our great Another our having In was Valencia have a control

end to So the like season quantify a of what is it kind and to the we'd full reserve but until evaluation this of noticeable. visible was, harvest improvement

Gerard Sweeney

optimistic. Cautiously

it. So your question. the -- least of of And I got renewal some contracts, coming is final up contract some then year. Obviously, think Got larger with That's it. of percentage -- fair. this at fruit

and or front you're should on that hear that when completed. comments or looking any or be Just we timing -- around would at what when

John Kiernan

early it days. is So

contract acres. We current expires for think the basically X/X to of out the are I season of the putting our it's at bid end replacement for the that

May. get we is but bid have really we my release the quarter it some in than can actively that it right we that to than details the anticipate done no may material, So better August, fingers process. we other no crossed, queue news have when but that by we're now, later we we keep share report maybe But I'll third in

Gerard Sweeney

would not next And for year it. contract this year. be Got that

John Kiernan

Correct. That would November, December. start in

Operator

Kiernan, at Mr. further time. no questions are proceed. there you And this can

John Kiernan

our continued our look I in and We everyone results with May. a for for just to Alico. second to speaking want all good thank you about day. forward support Have your of joining quarter call today

Operator

gentlemen, participating Have much your thank day. conference and concludes disconnect very lines. Ladies for a this and please you today. great your We ask for call you that

Alico (ALCO) 8 Feb 242024 Q1 Earnings call transcript