ALCO - Earnings call transcript Q3 2024

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Operator

Welcome to Alico's Third Quarter 2024 Conference Call. [Operator Instructions] As a reminder today's conference is being recorded.

Last night, the company issued a press release announcing its results for the third quarter ended June 30, 2024.

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

would forward-looking remind statements. we remarks that begin, contain today we like everyone to prepared Before differ expressed Such and may to other are factors from statements subject that cause to actual these implied in or risks, uncertainties materially statements. those results could on that to contribute and reports and Form Form risk XX-K, or differences on Form those such quarterly X-K filed SEC in current those company's cause the report such with amendments XX-Q, include earnings factors Important difference, details in annual the thereto results mentioned on release.

to undertakes no as update company forward-looking The the law. statements by on obligation except subsequently call, or today's revise made required

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

company's issued For press release more the to details on yesterday. measures, please the refer

the CEO, to to I company's the that, and like would Mr. With Kiernan. call over John turn President

John Kiernan

thank in joining Florida XXXX to you, did from my of everyone, had checked who earnings Thank over week, and we approached Hurricane wet weekend, this Debby for Quarter thank morning. call the any you, sustain to fellow and I expect wanted the day weekend the with Alico's and coast rain investors line. Third a we as rest Britney, for us our continue but employees Debby. each the damage not Alico us for

dozens for has through yesterday Thank you the Our seriously. else thoughts been are and your with storms who's today. all we concern. Floridians past who and century, everyone storm Alico everyone tropical of impacted by over our again were take fellow facing the storm of

of our crop XXXX-'XX season. harvesting the at early finished mid improved. fruit Fruit the harvest past but our poor Valencia quarter, in the Alico During and quality was both beginning last

post of rate accelerated However, the drop harvests. during fruit

to aggressively We past Early that season and Lower levels was led of early was a pound second the but the over the year Ian. sold, XXXX. production the of mid-season in control of out our solids harvest lower the being the base for mid-season We've for in continued affected and believe by which this and year, row. has Valencia box total in $XX.X year of million a inventory fiscal impact cost our levels Valencia lower Hurricane resulted managed of write-down and production revenue

have optimistic our to reasons We several about next be production more season.

planted are First, now them Alico since nearly XXXX, of has trees million producing X.X fruit. all and

of with treating we In as in XXXX injection therapy. treated began Alico OTC. with oxytetracycline greening to a its million Second, an were in citrus XXXX, trees product XXXX, X.X And trees via our citrus producing trees. over XX% we able January treat trunk producing approximately

$X.X Research in Alico and the money XXXX-'XX from Field harvest received was Florida applications Citrus that XXXX-'XX $X.X in substantially harvest all cover the OTC XX% June of season grant season January OTC of Foundation that will the and the XXXX of costs applications. million Trial received approximately covered million of

being that factor harvested small the another Although production most quality. along that year cautiously remain in second significant impacting were that past believe show Ian with crop previously We Hurricane fruit not will a the in or from also was treated injections XXXX round the fruit was combination a not first hurricane continued reduced for not we drop. the recovery round of trees of impressive, more of trees treated significant but optimistic removed the season from yield, just in and injections improvements, this

than in change Services X will to the calendar July, be the Department that be years that OTC was in a Florida applied we and Florida in trees restriction OTC the the to industry us product back started will product change year Agriculture for XXXX the enable in to label which fact, for This Alico treating approved the row. that apply citrus of to reported XXXX, in treatment it a overall. a relief cannot In remove the Consumer more

recovers Third, sell at next will as Alico's season, our we production fruit higher prices.

another As to Tropicana with announced, X Alico With supply years. for we XXXX-'XX current better extended the the higher reflect increases pricing have will with per Tropicana our market previously solid, our new second contract relationship Tropicana, fruit, Company prices realize in of and significantly are which which acres contract price season, pound and The which the has higher approximately pricing also end covers third than XX% a expires expiring production of acres. contracts. years. at This of with by our new contract covered our the remainder of but

over world-class citrus more more hurricane is it on the Alico has as just prepared As active becomes than and Atlantic years. focused XXX operations the months, few next its season managing for

greatest is advantages sheet our weather we One liquidity. competitive face uncertainties potential balance our as of

capital November Hurricane Our in line vendors under and remain we credit, to our from provide trees relationships approximately capacity combination strong, a liquidity recover revolving of our ample million and line with which credit, matures of of of working undrawn to $XX.X Ian. have matures as a in November XXXX of a XXXX of continue which

does $XX until not amortize term debt is million not and XXXX. Our of repayment due for

we have and access to workers We -- stable. is have contractors employee base steady to and access our

estate the real regular highest conduct of will Alico our use operations, as To of nearly to Alico our our our come. for all clear, invest evaluates at and Outside citrus operations continues assets. years resources to of be to groves long-term citrus continue it best

the active to extract our comes creative provide to We value. will that of benefits seek We explore management. with all enhance optionality with our and to stability conventional solutions a land of with properties the investment and investors continue evaluating agricultural

another made direct from difficult our Grove in we from after Hurricane TRB XXXX, took hit the proprietary Charlotte year, decision it a to in operations County transition a to there Ian evaluating also citrus Last crop its mining, third-party citrus decided grove of beyond leasing year, and evaluated activities. realize and mix use. vegetable have we to best and move to fruit highest This

a land be exercised acres a acres of conduct of payments. of expected price of understood E.R. obtained, It regulatory with option $XX,XXX will by a mining approximately on XXXX. on grove Alico been acres, to including the located XXXX, -- lease Jahna sand this land right net XxX County, these which our agreement XXXX. agreement approval January expires end Industries, operations per Hendry of has have minimis XXX sale December is that lease in purchase the third-party once most option and It plans In Jahna citrus at the Alico of acre in for is that into approximately back to de XXX for the entered

Grove announced acres same those harvest previously price acre, Alico strategy continue from $X.X $X,XXX million, capital at an the party third of option a within season. monetizing on which of purchase redeploy to basis and the per of shareholders. a that approximately which acres citrus April returns per XXXX, our the another our includes and This better date to to another into XXX land to case-by-case sale groves XXX for of for acre, closing approximately agreement is citrus illustrates XX sell June end grow In the we of the next the closed entered acres at will XxX on months at an XXX transaction, for to to XXXX, generate

That properties strategy County. which citrus our process activities estate the May, operations, since Collier real process to of Hutchcraft us with XXXX, our been in Mitch a real for continuing flow of early entitlement began accelerate remaining a existing recruited and Alico X,XXX-acre begin to addition from every encouraged its comprehensive estate a the Alico acre pursuing for operations. diversified and activities and holdings grove analysis execute create map use lead initiatives. evaluate our In to comprehensive is cash well to our generation has to our to near-term analysis agricultural In portfolio. Corkscrew land we entitlement best for highest these as highest that continued best for use its road as a develop against potential strategic

and planning following General to member, announce the served November that a Alico Current since in succeed Brokaw, Board of as XXXX. next Alico will XXXX. has our part which as our Annual of company. since to serve director George continue of selected of be Meeting, Chairman will pleased held I'm as Director who Chairman the February succession Adam to as XXXX been a George Board will has Putnam be appointed Adam also process,

on since has Officer habitats of April and the to Adam supply and chain, served leadership associated business people August finance. Chief has in dedicated XXXX. extensive of of of since other not-for-profit Alico served as experience knowledge XXXX Executive the Ducks a Directors organization and Unlimited, and conservation and for government affairs, has Adam wildlife waterfowl, wetlands the sustainability, U.S. Board areas upwind agriculture, of

supply among such from growth U.S. Ducks issues Commissioner state's as from focused and issues to served agriculture was energy. also we XXXX together and and Republican XXXX operations the navigating climate water environment. Chair supply until experience, the the water and XXXX. X he Prior XXXX, where from to and risks XXXX, service With to policy terms on Unlimited, Congressman and public Agriculture opportunities joining on He the understanding Florida's engaged sustainability, protecting where public for within the Florida's and and brings agriculture, to as expertise was of Florida with of of water regulatory fostering a agriculture other physical Adam XXXX of in Board House transition his change knowledge he

to financial discuss turn I'll detailed to that, With over Brad the call our results. more

Bradley Heine

and morning, good John, Thank you, everyone.

crop citrus quarters typically cash is majority seasonal, in our is in third and and the profits the business are quarters. of third of harvested year, our second also recognized of the majority our and second fiscal and the As the flows

harvest, due first year. in However, year quarters citrus more crop and second of the the fiscal harvested this of the current of to timing was the

for our are results. full As of such, quarterly year indicative quarter results third not the the

ended of months in and boxes For X.X the The same beginning X.X XXXX. months June increases the result June the and million fruit to million recover of driven the was prior million fruit, primarily XX, to harvested fiscal in Alico boxes harvest a XXXX, by timing for production X compared to as and X.X our of ended the harvested respectively, June the million and pre-hurricane XX, X.X year. approximately months X of XXXX, of periods X for the citrus XX, boxes X ended levels

pound X and solids X% solids The year, were XX% respectively, early And XXXX, were months ended prior and for June and the while to down pound harvests complete. the X.X%, and box compared per X.X% XX, mid-season produced Valencia up respectively. are

an price more solids X in XXXX, in XX, of our the X.X%, Additionally, pricing favorable in year of increase X.X% the same period the to with the June Tropicana. in compared contracts ended as per pound fiscal of respectively, result and one we a months realized prior

the per in the to year. Our compared pound realized/blended as X.X% increased ended X price same XXXX, solids for prior XX, months average period June the

that expects company of signing prices solid As our significantly our year. contract new result with the next the more a increase per of pound Tropicana, will

and primarily June X for to compared to partially expenses months by the decreased and XX, XX, XXXX, offset costs, legal million costs. June due administrative lower increased XXXX, insurance depreciation, General $X.X the months employee ended ended X

Alico increased X sale months acres expenses the sale June X third of acres the Other the the million ended ended months to XX, of XX,XXX to the related in primarily and By citrus June comparison, net of ended the X,XXX on to equipment Alico the acres due of XX, to XX, $XX.X the the property for million Ranch XXXX, and of X sales of months several of land sale X XXXX, gains of XXX $X.X we Ranch compared the State during XXXX, recognized Florida XXXX. XX, ended months the parties. June aggregate June from to approximately for

XX, June stockholders For and net $X XXXX, X income the XX, was for insurance months XXXX, expenses. were recorded driven $XX.X the ended X net common income XX, million, of Hurricane ended X sale company June Partially received reduction XXXX, loss attributable stockholders of respectively. XXXX. offsetting the net million is million this citrus respectively, X ended and of of The for attributable a to XXXX, $X.X of reported common as months in operating Ian income XX, common million to $XX.X X to June June attributable of decrease from ended Alico Alico attributable the and million land Alico months gain million the $X.X stockholders by ended X to proceeds XX, common compared which net a June during Alico the and of and X the a $XX.X stockholders in our to months months

year gain of our on acres gain by attributable common Alico a June the the months of sale X XXXX, $X.X recorded on which XXXX, on of lowered on The be land million the for months XXXX, as fiscal increase as $XX.X increase net stockholders partially XXXX, the million remaining a ended June of well XX, September balance compared in insurance driven was adjustments June Citrus from the June of to ended proceeds in XX, XXXX X XXXX. the X result million income inventory and Alico XX, for XXXX, and a the at XX, sale to by provision of XX, in a months offset million effectively inventory the to $X.X the expensed the Hurricane of XX,XXX as ended the impact Ranch $XX.X December ending tax Ian, inventory of XX,

share of months and common June the company of X X ended and $X.XX June the XX, XXXX, XXXX, for respectively, diluted to $X.XX a share, earnings For earnings XX, and per ended common per and the $X.XX X $X.XX months diluted of had X loss compared respectively.

pass John. to now will back call the I

John Kiernan

Brad. Thanks,

management. the harvesting we believe Alico season term. as of removed to strong over sheet believe industry as experience XXX has the disappointing, a which which Florida its land million another remain grow groves, is help will of has years committed will Since the investments next the trees. recovery a leader new we season was agriculture and balance for to Florida planted year Ian, from we result We make long in be have a in us Hurricane from the X.X XXXX, hurricane. is Although Alico continuing citrus we over and continuing

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

we industry open that, analysts. line with the Britney? to now questions up And will from

Operator

will the it And back turn questions program have the to line Instructions] on I Mr. [Operator Kiernan. over we no appears today.

John Kiernan

and to for in forward results November. for our look support joining just everyone Alico. today call I continued about you want to We year-end with speaking thank say of you Operator? your to our

Operator

does conclude This today's conference.

this Have great You your participation. may day. and at you lines thank a disconnect your for time,

Alico (ALCO) 6 Aug 242024 Q3 Earnings call transcript