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Dec 31, 2022
Alico Q1 2023 Earnings Report
Alico reported a net loss attributable to common stockholders and experienced a decrease in citrus production due to Hurricane Ian.
Key Takeaways
Alico, Inc. reported a net loss of $3.2 million for the quarter ended December 31, 2022, compared to a net income of $10.1 million for the same period last year. The decrease was primarily due to increased cost of sales and the timing of gains on sale of real estate. Hurricane Ian significantly impacted citrus production, leading to lower revenue. The company maintains a strong balance sheet with working capital of $27.3 million.
Reported net loss attributable to Alico, Inc. common stockholders of $3.2 million and EBITDA of $0.9 million.
Sold approximately 609 acres of the Alico Ranch to third parties for approximately $3.3 million.
Overall box production for the Early and Mid-Season crop will be lower than prior year production due to Hurricane Ian.
Maintained Balance Sheet strength, with working capital of $27.3 million.
Alico
Alico
Alico Revenue by Segment
Revenue by Segment
Alico Citrus Revenue
CapyFin.com Forward Guidance
Alico anticipates lower levels of revenue in fiscal year 2023 due to the impact of Hurricane Ian on the citrus crop. The company expects it may take up to two full seasons, or more, for the groves to recover to pre-hurricane production levels. The company is working with insurers to determine the amount of insurance recovery they may be entitled to.
Positive Outlook
- Company continues to maintain a strong balance sheet.
- Groves were able to avoid any meaningful impact from freezing temperatures due to freeze protection protocols and dedicated staff.
- Company is working with Florida Citrus Mutual and government agencies on federal relief programs.
- Company has completed several sales of ranch land and closed on another sale of ranch land in January 2023.
- Engaging with interested third parties on certain parcels of the ranch.
Challenges Ahead
- Will see lower levels of revenue because we have less fruit available to sell.
- It may take up to two full seasons, or more, for our groves to recover to pre-hurricane production levels.
- Early and Mid-Season harvest ended earlier with lower production volume than in the prior year due to the increased rate of fruit drop as a result of Hurricane Ian.
- The mechanism and funding of Hurricane Ian relief remains unclear.
- Extent to which the Company will be eligible for federal relief programs is unknown.