Alico Inc (ALCO) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic Initiatives

In This Article:

  • Revenue: Decreased 1% to $18 million for the quarter; decreased 9% to $34.9 million for the six months ended March 31, 2025.

  • Citrus Harvest: 4.7 million pound solids for the quarter; 8.7 million pound solids for the six months, down from 5.8 million and 10.4 million respectively in the prior year.

  • Blended Price per Pound Solids: Increased by $0.70 for the quarter and $0.85 for the six months compared to the prior year.

  • Land Management and Other Operations Revenue: Increased 107% for the quarter and 74% for the six months compared to the prior year.

  • Total Operating Expenses: $167.7 million for the quarter; $192.8 million for the six months, driven by $118 million of non-cash accelerated depreciation.

  • Net Loss: $111.4 million for the quarter, compared to $15.8 million in the prior year.

  • Loss per Diluted Common Share: $14.58 for the quarter, compared to $2.07 in the prior year.

  • EBITDA: Loss of $14.7 million for the quarter; adjusted EBITDA of $12.7 million.

  • Cash and Cash Equivalents: $14.7 million as of March 31, 2025.

  • Net Cash Used in Operating Activities: $0.6 million for the six months ended March 31, 2025.

  • Total Debt: $89.6 million as of March 31, 2025; net debt of $74.9 million.

  • Projected Cash Balance: Approximately $25 million by fiscal year-end 2025.

  • Projected Net Debt: Approximately $60 million by fiscal year-end 2025.

  • Projected Adjusted EBITDA: Approximately $20 million for fiscal year 2025.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Alico Inc (NASDAQ:ALCO) completed its fiscal year 2025 harvest, concluding the majority of its capital investment in citrus operations.

  • The company has successfully reduced its workforce from approximately 200 employees to 25, significantly lowering operating expenses.

  • Alico Inc (NASDAQ:ALCO) raised its outlook for land sales, potentially achieving an additional $30 million, a 150% increase from prior guidance.

  • The company is actively diversifying its agricultural activities, including potential sod production and expanding sand mining activities.

  • Alico Inc (NASDAQ:ALCO) announced a $50 million share repurchase program, indicating a strong capital allocation strategy.

Negative Points

  • Revenue decreased by 1% for the quarter and 9% for the six months ended March 31, 2025, compared to the prior year periods.

  • The company reported a net loss attributable to Alico Common's shareholders of $111.4 million, significantly higher than the previous year's loss.

  • Operating expenses increased substantially due to approximately $118 million of non-cash accelerated depreciation.

  • The impact of Hurricane Milton in October 2024 led to lower harvest volumes compared to the previous year.

  • General and administrative expenses increased due to accelerated depreciation and higher legal fees related to the strategic transformation.