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Dec 31, 2019
Alico Q1 2020 Earnings Report
Alico reported a net income of $0.8 million and EPS of $0.11, despite challenges in the pricing environment.
Key Takeaways
Alico, Inc. reported a net income attributable to Alico common stockholders of $0.8 million, with earnings per diluted common share at $0.11 for the fiscal quarter ended December 31, 2019. These results reflect the seasonal nature of the Company’s business.
Production of fruit on track to match prior season’s harvest.
Current pricing environment is challenging.
Additional proceeds of $4.5 million received under the Florida Citrus Recovery Block Grant Program.
Balance Sheet remains strong with a working capital ratio of 2.33 to 1.00.
Alico
Alico
Alico Revenue by Segment
Revenue by Segment
Alico Citrus Revenue
CapyFin.comLand Mgmt & Other Ops Revenue
CapyFin.com Forward Guidance
Alico is producing excellent fruit on schedule and as expected, but is affected by the pricing pressure that is currently impacting the entire citrus industry. The Company expects a lower level of revenues for this current fiscal year.
Positive Outlook
- Producing excellent fruit on schedule and as expected.
- Long-term contracts mitigate the full impact of these low market prices.
- Alico 2.0 Modernization program efforts.
- Continued focus on controlling and managing future costs.
- Cost structure and operating discipline will enable Alico to rebound strongly when market prices recover.
Challenges Ahead
- Affected by the pricing pressure that is currently impacting the entire citrus industry.
- Expect a lower level of revenues for this current fiscal year.
- Supply and demand imbalances in the past.
- The Florida citrus crop being greater than expected in the 2018/2019 harvest season, leading to excess inventory levels in the current harvest season.
- Continued inflow of imported fruit.
Revenue & Expenses
Visualization of income flow from segment revenue to net income