The following is a summary of the Alico, Inc. (ALCO) Q4 2024 Earnings Call Transcript:
Financial Performance:
Alico reported a net income of $7 million for the fiscal year 2024, up from $1.8 million in the previous fiscal year. Adjusted EBITDA improved to a loss of $3.8 million from a loss of $16.1 million year over year.
Earnings per diluted common share increased to $0.91 in 2024, up from $0.24 in 2023.
The company recognized a substantial gain of $81.4 million from land sales, specifically the sale of 17,229 acres to the State of Florida.They encountered a significant inventory impairment charge of $19.5 million due to lower estimated harvest for 2024-2025.
Business Progress:
Faced with ongoing post-Hurricane Ian challenges, Alico continues to focus on operational resilience.
Entered a beneficial new Orange Purchase Agreement with Tropicana, securing prices 33% to 50% higher over the life of the contract.
Sold significant land holdings to bolster financial stability and reduce debt, notably repaying all outstanding borrowings under the line of credit and a $19.1 million balance of the MetLife variable term rate debt.
Extended the maturity of the revolving credit facility with MetLife to 2034, enhancing liquidity management.
Opportunities:
The new contract with Tropicana at significantly higher prices than the previous season presents an opportunity to boost revenue from citrus sales.
OTC injections to improve citrus health and reduce fruit drop are expected to enhance crop yields and quality.
Risks:
Alico's operations continue to be heavily impacted by weather events, with Hurricanes Ian and Milton causing significant fruit drop and operational disruptions.
Uncertainties in predicting crop sizes and quality due to varying impacts of agricultural diseases like citrus greening.
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