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Jun 30, 2020
Alico Q3 2020 Earnings Report
Announced financial results for the third quarter of fiscal year 2020.
Key Takeaways
Alico, Inc. reported net income attributable to common stockholders of $2.1 million, and EBITDA of $7.5 million for the quarter ended June 30, 2020. The company's Alico Citrus division saw operating revenues of $25.4 million.
Company now has contracts in place that provide for prices per pound solid over the next several years which will be greater than the current year’s prices per pound solid.
Company entered into a new long-term agreement to provide citrus grove management for approximately 7,000 acres in southwestern Florida.
The coronavirus outbreak (“COVID-19”) did not impact the Company’s fiscal year 2020 harvest and has not had a material adverse impact on the Company’s overall business operations.
Company appoints two new Board members with Florida agriculture expertise and exceptional credentials.
Alico
Alico
Alico Revenue by Segment
Revenue by Segment
Alico Citrus Revenue
CapyFin.comLand Mgmt & Other Ops Revenue
CapyFin.com Forward Guidance
The Company is projecting net income for its fiscal year ended September 30, 2020 between $22.0 million and $24.0 million and EBITDA for its fiscal year ended September 30, 2020 between $49.5 million and $52.5 million.
Positive Outlook
- New citrus supply agreements, which extend until 2024, have pricing mechanisms which will protect the Company in the event of over-supply.
- Alico is entitled to receive greater prices per pound solid than the prices per pound solid realized by the Company this fiscal year
- Agreements incorporate certain increasing pricing provisions over the next several seasons.
- Higher levels of consumer demand have increased not-from-concentrate orange juice consumption in 2020 and driven down processor inventory levels
- Operating costs have been consistent over the last few years, after executing operational and financial improvements previously outlined in our Alico 2.0 Modernization program
Challenges Ahead
- Alico will realize lower earnings this fiscal year primarily because of lower market prices for citrus fruit.
- Net Income attributable to common stockholders $22,000,000 - $24,000,000
- Interest expense $5,900,000 - $6,100,000
- Income tax provision $7,300,000 - $7,900,000
- Depreciation, depletion and amortization $14,300,000 - $14,500,000
Revenue & Expenses
Visualization of income flow from segment revenue to net income