Alico, Inc. a leading agricultural and land management company, has announced its financial results for the fourth quarter and fiscal year ending September 30, 2024. Key highlights include notable land sales, financial performance, and updates on operational initiatives, despite challenges impacting citrus production.
Financial Performance
For the fiscal year ending September 30, 2024, Alico reported a net income attributable to common stockholders of $7.0 million, a significant improvement from $1.8 million in the prior fiscal year. Earnings per diluted share also rose to $0.91, compared to $0.24 in fiscal 2023.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fiscal year totaled $29.7 million, but after accounting for non-recurring items, Adjusted EBITDA reflected a loss of $3.8 million. Alico’s land sales during the year contributed $86.2 million in gross proceeds, including the sale of approximately 18,354 acres.
The company’s balance sheet remained robust, with $86.6 million in undrawn credit under its revolving line of credit (RLOC). A key development was the amendment of the Credit Agreement with Metropolitan Life Insurance Company (MetLife), which increased the RLOC borrowing capacity from $25 million to $95 million and extended the maturity to May 1, 2034. This replaced the $70 million working capital line of credit with Rabo Agrifinance, which was due to mature in November 2025.
Operational Challenges and Citrus Production
The 2024 fiscal year presented significant challenges for Alico’s citrus operations. Lower-than-expected initial production estimates for the 2024-2025 harvest season led to a $19.5 million inventory impairment charge in the fourth quarter. Additionally, lower citrus production levels, stemming from the lingering effects of Hurricane Ian in 2022, continued to impact harvest yields.
Despite these challenges, Alico Citrus harvested 3.1 million boxes of fruit in fiscal 2024, representing a 14.7% year-over-year increase, slightly surpassing the USDA’s industry-reported growth of 13.5%. Favorable pricing adjustments in contracts with Tropicana contributed to an increase in the average realized price per pound solids from $2.70 in fiscal 2023 to $2.81 in fiscal 2024.
To mitigate ongoing challenges, Alico expanded the use of oxytetracycline (OTC) injections across its citrus groves, a treatment aimed at combating citrus greening disease. Approximately 35% of the treated trees have undergone a second round of injections. These efforts are supported by grants from the Florida Citrus Research and Field Trial Foundation, covering a significant portion of the treatment costs.
Impact of Hurricane Milton
In October 2024, Hurricane Milton brought sustained winds to several of Alico’s northern groves, particularly in Polk and Hardee Counties. While tree damage appeared minimal, measurable fruit drop occurred, further complicating projections for the 2024-2025 harvest. Management is closely monitoring the situation and evaluating potential impacts on overall crop yields.
Land Management and Real Estate Initiatives
Alico continues to strategically manage its extensive land portfolio, comprising approximately 53,371 acres across eight Florida counties and 48,700 acres of oil, gas, and mineral rights. The company sold 17,229 acres of the Alico Ranch to the State of Florida for $77.6 million in December 2023. The proceeds were used to repay outstanding borrowings, strengthening the balance sheet and reducing principal repayment obligations through fiscal 2029.
Progress is also being made on a multi-year entitlement process for a 4,500-acre grove near Fort Myers, with steps including environmental assessments, conservation planning, and stakeholder outreach. Other real estate assets in Polk, Highlands, and Hendry Counties are being evaluated for potential transactions, underscoring Alico’s focus on maximizing the value of its land portfolio.
Other Corporate Developments
The Land Management and Other Operations division, which includes income from grazing rights, hunting leases, and oil extraction rights, saw a slight decline in gross profit, primarily due to reduced hunting and grazing lease revenue following land sales. General and administrative expenses rose to $11.1 million, driven by increased personnel costs, while other income surged to $78.4 million due to land sales.
Dividend and Financial Position
Alico paid a fourth-quarter dividend of $0.05 per share in October 2024. The company maintained a solid financial position with a working capital ratio of 3.81 to 1.00 and a debt-to-assets ratio of 0.23 to 1.00 as of September 30, 2024, an improvement from 0.30 to 1.00 in the prior year.
