Alico, Inc. (“Alico” or the “Company”) (NASDAQ:ALCO), today
announces financial results for the second quarter and six months
ended March 31, 2017. For the six month period, the
Company earned $0.49 per share compared to $0.69 per share in the
prior year primarily due to lower citrus production volume. When
both periods are adjusted for certain items including merger and
acquisition transaction costs, litigation costs, consulting fees,
real estate gains and stock compensation expense, the Company
earned $0.43 per share in the six month period of fiscal year 2017
and $0.73 per share in the six months of 2016.
|
|
(in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
Change |
|
2017 |
|
2016 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,884 |
|
|
$ |
8,724 |
|
|
$ |
(2,840 |
) |
|
(32.6 |
)% |
|
$ |
4,141 |
|
|
$ |
5,704 |
|
|
$ |
(1,563 |
) |
|
(27.4 |
)% |
EBITDA |
$ |
16,408 |
|
|
$ |
21,347 |
|
|
$ |
(4,939 |
) |
|
(23.1 |
)% |
|
$ |
19,643 |
|
|
$ |
22,771 |
|
|
$ |
(3,128 |
) |
|
(13.7 |
)% |
Earnings per diluted
common share |
$ |
0.70 |
|
|
$ |
1.05 |
|
|
$ |
(0.35 |
) |
|
(33.3 |
)% |
|
$ |
0.49 |
|
|
$ |
0.69 |
|
|
$ |
(0.20 |
) |
|
(29.0 |
)% |
Net cash provided by
(used in) operating activities |
$ |
14,688 |
|
|
$ |
26,919 |
|
|
$ |
(12,231 |
) |
|
(45.4 |
)% |
|
$ |
(2,749 |
) |
|
$ |
12,138 |
|
|
$ |
(14,887 |
) |
|
(122.6 |
)% |
|
|
Alico Citrus Division
Results
Alico Citrus’ Early and Mid-Season fruit harvest
was completed in the quarter ended March 31, 2017. Early and
Mid-Season 2016-17 box and pound solids production for the six
months were down 10.8% and 10.3%, respectively compared to the
2015-16 harvest. However, prices increased by 17.0% to $2.55
per pound solid compared to $2.18 last year. Pound solids per
box also increased to 5.58 compared to 5.55 last year.
The Valencia fruit harvest commenced in the
quarter. Year-to-date production is not directly comparable
to last year due to timing as we have harvested fewer blocks this
year compared to the same time in last year’s harvest season.
Pound solids per box are improved at 6.09 compared to 5.94 last
year.
On April 11, 2017, the USDA estimated that the
Florida orange crop, as measured in boxes, will decline by 18.0%
for the 2016-17 season compared to last year. We are
currently projecting a full season year-over-year decline in box
production of approximately 15.0%.
Citrus production for the second quarter and six
months ended March 31, 2017 and 2016 is summarized in the
following table.
(boxes and
pound solids in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
|
|
|
Six Months Ended March
31, |
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
2016 |
|
% Change |
Boxes
Harvested: |
|
|
|
|
|
|
|
|
|
|
|
Early and
Mid-Season |
2,186 |
|
|
2,293 |
|
|
(4.7 |
)% |
|
3,215 |
|
|
3,604 |
|
|
(10.8 |
)% |
Valencias |
1,225 |
|
|
2,341 |
|
|
(47.7 |
)% |
|
1,225 |
|
|
2,341 |
|
|
(47.7 |
)% |
Total
Processed |
3,411 |
|
|
4,634 |
|
|
(26.4 |
)% |
|
4,440 |
|
|
5,945 |
|
|
(25.3 |
)% |
Fresh
Fruit |
115 |
|
|
153 |
|
|
(24.8 |
)% |
|
244 |
|
|
349 |
|
|
(30.1 |
)% |
Total |
3,526 |
|
|
4,787 |
|
|
(26.3 |
)% |
|
4,684 |
|
|
6,294 |
|
|
(25.6 |
)% |
Pound Solids
Produced: |
|
|
|
|
|
|
|
|
|
|
|
Early and
Mid-Season |
12,510 |
|
|
13,075 |
|
|
(4.3 |
)% |
|
17,950 |
|
|
20,006 |
|
|
(10.3 |
)% |
Valencias |
7,467 |
|
|
13,899 |
|
|
(46.3 |
)% |
|
7,467 |
|
|
13,899 |
|
|
(46.3 |
)% |
Fresh
Fruit |
— |
|
|
142 |
|
|
(100.0 |
)% |
|
— |
|
|
142 |
|
|
(100.0 |
)% |
Total |
19,977 |
|
|
27,116 |
|
|
(26.3 |
)% |
|
25,417 |
|
|
34,047 |
|
|
(25.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Pound Solids
per Box: |
|
|
|
|
|
|
|
|
|
|
|
Early and
Mid-Season |
5.72 |
|
|
5.70 |
|
|
0.4 |
% |
|
5.58 |
|
|
5.55 |
|
|
0.5 |
% |
Valencias |
6.09 |
|
|
5.94 |
|
|
2.5 |
% |
|
6.09 |
|
|
5.94 |
|
|
2.5 |
% |
Price per Pound
Solids: |
|
|
|
|
|
|
|
|
|
|
|
Early and
Mid-Season |
$ |
2.56 |
|
|
$ |
2.27 |
|
|
12.8 |
% |
|
$ |
2.55 |
|
|
$ |
2.18 |
|
|
17.0 |
% |
Valencias |
$ |
2.72 |
|
|
$ |
2.42 |
|
|
12.4 |
% |
|
$ |
2.72 |
|
|
$ |
2.42 |
|
|
12.4 |
% |
Alico Citrus continues to focus on efficiency
and cost control. Our cost of sales for fiscal year 2017 are
expected to decrease by approximately $1.2 million from the prior
year despite the challenges of unusual weather and disease;
however, the cost of production per pound solid increased 16.1% to
$1.44 for the six months ended March 31, 2017 as compared to
$1.24 in the same period last year because of lower volumes
supporting the cost base.
Conservation and Environmental Resources
Division Results
Conservation and Environmental Resources (“CER”)
revenues for the six months ended March 31, 2017 totaled $0.8
million compared to $1.7 million in the six months ended March 31,
2016. The decrease relates primarily to the timing of calf sales.
CER held an additional 1,000 calves in inventory at September 30,
2015 which would have historically been sold prior to year-end but
were instead sold in the first quarter of fiscal year
2016.
CER operating expenses decreased by $0.9 million
for the six months ended March 31, 2017 compared to the six
months ended March 31, 2016 due to the timing of additional pounds
sold and a $0.1 million decrease in water conservation related
expenses.
Other Corporate Financial
Information
Alico continues to invest in information
technology, management talent and strategic acquisition activities
while simultaneously controlling recurring general and
administrative costs. Corporate G&A expenses for the six
months ended March 31, 2017 totaled $7.2 million compared to
$6.8 million for the six months ended March 31, 2016, an
increase of $0.4 million. Recurring general and administrative
costs increased by approximately $0.9 million in the first six
months of fiscal 2017 compared to the first six months of fiscal
year 2016. The increase was attributable to executive
compensation-related expenses.
Other expense, net was $2.9 million and $4.4
million for the six months ended March 31, 2017 and 2016,
respectively. The decrease of $1.5 million is primarily
attributable to a $0.9 million increase in gains on real estate
sales and a $0.3 million decrease in interest expense.
The Company paid a second quarter cash dividend
of $0.06 per share on its outstanding common stock on April 14,
2017 to shareholders of record at March 31, 2017.
During the second quarter, the Company entered
into negotiations with a third party to sell approximately 1,000
net plantable acres of farmland in Hendry County, Florida that is
currently leased to a vegetable farmer. A non-binding letter
of intent has been executed and provides the potential buyer with a
period of exclusivity to conduct due diligence. The proposed sale
price would result in a significant positive impact on our net
income but there is no assurance that a binding agreement will be
entered into or that a sale will occur.
The Company ended the quarter with term debt,
net of cash and cash equivalents, of $190.8 million.
About Alico
Alico is a holding company with assets and
related operations in agriculture and environmental resources,
including cattle ranching, water management, and mining. Our
mission is to create value for shareholders by managing existing
assets to their optimal current income and total returns,
opportunistically acquiring new assets and producing high quality
agricultural products while exercising responsible environmental
stewardship. Learn more about Alico (NASDAQ:ALCO) at
www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements are based on
Alico’s current expectations about future events and can be
identified by terms such as “plans,” ”expect,” “may,”
“anticipate,” “intend,” “should be,” “will be,” “is likely
to,” “believes,” and similar expressions referring to future
periods.
Alico believes the expectations reflected in the
forward-looking statements are reasonable but cannot guarantee
future results, level of activity, performance or achievements.
Actual results may differ materially from those expressed or
implied in the forward-looking statements. Therefore, Alico
cautions you against relying on any of these forward-looking
statements. Factors which may cause future outcomes to differ
materially from those foreseen in forward-looking statements
include, but are not limited to: changes in laws, regulation and
rules; weather conditions that affect production, transportation,
storage, demand, import and export of fresh product and its
by-products, increased pressure from diseases including citrus
greening and citrus canker, as well as insects and other pests;
disruption of water supplies or changes in water allocations;
pricing and supply of raw materials and products; market responses
to industry volume pressures; pricing and supply of energy; changes
in interest rates; availability of financing for land development
activities and other growth opportunities; onetime events;
acquisitions and divestitures, including our ability to achieve the
anticipated results of the Orange-Co acquisition and Silver Nip
merger; seasonality; labor disruptions; inability to pay debt
obligations; inability to engage in certain transactions due to
restrictive covenants in debt instruments; government restrictions
on land use; changes in agricultural land values; and market and
pricing risks due to concentrated ownership of stock. Other risks
and uncertainties include those that are described in Alico’s SEC
filings, which are available on the SEC’s website at
http://www.sec.gov. Alico undertakes no obligation to subsequently
update or revise the forward-looking statements made in this press
release, except as required by law.
ALICO, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED) |
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
revenues: |
|
|
|
|
|
|
|
Alico
Citrus |
$ |
55,667 |
|
|
$ |
70,982 |
|
|
$ |
72,544 |
|
|
$ |
90,277 |
|
Conservation and Environmental Resources |
487 |
|
|
644 |
|
|
788 |
|
|
1,651 |
|
Other
Operations |
46 |
|
|
263 |
|
|
313 |
|
|
565 |
|
Total
operating revenues |
56,200 |
|
|
71,889 |
|
|
73,645 |
|
|
92,493 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Alico
Citrus |
40,923 |
|
|
51,716 |
|
|
55,008 |
|
|
69,324 |
|
Conservation and Environmental Resources |
761 |
|
|
581 |
|
|
1,275 |
|
|
2,141 |
|
Other
Operations |
— |
|
|
77 |
|
|
93 |
|
|
147 |
|
Total
operating expenses |
41,684 |
|
|
52,374 |
|
|
56,376 |
|
|
71,612 |
|
|
|
|
|
|
|
|
|
Gross
profit |
14,516 |
|
|
19,515 |
|
|
17,269 |
|
|
20,881 |
|
General and
administrative expenses |
3,399 |
|
|
2,849 |
|
|
7,187 |
|
|
6,774 |
|
|
|
|
|
|
|
|
|
Income from
operations |
11,117 |
|
|
16,666 |
|
|
10,082 |
|
|
14,107 |
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
Investment and interest income, net |
47 |
|
|
— |
|
|
47 |
|
|
— |
|
Interest
expense |
(2,374 |
) |
|
(2,475 |
) |
|
(4,701 |
) |
|
(4,978 |
) |
Gain on
sale of real estate |
1,396 |
|
|
760 |
|
|
1,832 |
|
|
902 |
|
Other
income (expense), net |
19 |
|
|
(125 |
) |
|
(71 |
) |
|
(300 |
) |
Total
other expense, net |
(912 |
) |
|
(1,840 |
) |
|
(2,893 |
) |
|
(4,376 |
) |
|
|
|
|
|
|
|
|
Income before
income taxes |
10,205 |
|
|
14,826 |
|
|
7,189 |
|
|
9,731 |
|
Provision for income
taxes |
4,321 |
|
|
6,102 |
|
|
3,048 |
|
|
4,027 |
|
|
|
|
|
|
|
|
|
Net
income |
5,884 |
|
|
8,724 |
|
|
4,141 |
|
|
5,704 |
|
Net (income) loss
attributable to noncontrolling interests |
(51 |
) |
|
10 |
|
|
(43 |
) |
|
18 |
|
Net income
attributable to Alico, Inc. common stockholders |
$ |
5,833 |
|
|
$ |
8,734 |
|
|
$ |
4,098 |
|
|
$ |
5,722 |
|
|
|
|
|
|
|
|
|
Per share
information attributable to Alico, Inc. common
stockholders: |
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.70 |
|
|
$ |
1.05 |
|
|
$ |
0.49 |
|
|
$ |
0.69 |
|
Diluted |
$ |
0.70 |
|
|
$ |
1.05 |
|
|
$ |
0.49 |
|
|
$ |
0.69 |
|
Weighted-average number of common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
8,327 |
|
|
8,286 |
|
|
8,326 |
|
|
8,294 |
|
Diluted |
8,327 |
|
|
8,303 |
|
|
8,326 |
|
|
8,309 |
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share |
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
ALICO, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
(in thousands, except share
amounts) |
|
|
|
|
|
March 31, 2017 |
|
September 30, 2016 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and
cash equivalents |
$ |
1,041 |
|
|
$ |
6,625 |
|
Accounts
receivable, net |
22,648 |
|
|
4,740 |
|
Inventories |
53,069 |
|
|
58,469 |
|
Income
tax receivable |
1,013 |
|
|
1,013 |
|
Assets
held for sale |
3,137 |
|
|
— |
|
Prepaid
expenses and other current assets |
2,629 |
|
|
1,024 |
|
Total current assets |
83,537 |
|
|
71,871 |
|
|
|
|
|
Property and equipment,
net |
372,512 |
|
|
379,247 |
|
Goodwill |
2,246 |
|
|
2,246 |
|
Deferred financing
costs, net of accumulated amortization |
264 |
|
|
389 |
|
Other non-current
assets |
1,400 |
|
|
1,692 |
|
Total assets |
$ |
459,959 |
|
|
$ |
455,445 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
5,919 |
|
|
$ |
5,975 |
|
Accrued
liabilities |
4,238 |
|
|
6,920 |
|
Long-term
debt, current portion |
4,500 |
|
|
4,493 |
|
Obligations under capital leases, current portion |
288 |
|
|
288 |
|
Other
current liabilities |
339 |
|
|
1,002 |
|
Total current liabilities |
15,284 |
|
|
18,678 |
|
|
|
|
|
Long-term debt: |
|
|
|
Principal amount |
187,338 |
|
|
192,726 |
|
Less: deferred
financing costs, net |
(1,872 |
) |
|
(1,980 |
) |
Long-term debt less
deferred financing costs, net |
185,466 |
|
|
190,746 |
|
Lines of credit |
11,417 |
|
|
5,000 |
|
Deferred tax
liability |
34,119 |
|
|
31,056 |
|
Deferred gain on
sale |
27,587 |
|
|
27,204 |
|
Deferred retirement
obligations |
4,185 |
|
|
4,198 |
|
Obligations under
capital leases |
300 |
|
|
300 |
|
Total liabilities |
278,358 |
|
|
277,182 |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
Preferred
stock, no par value, 1,000,000 shares authorized; none issued |
— |
|
|
— |
|
Common
stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145
shares issued and 8,306,319 and 8,315,535 shares outstanding at
March 31, 2017 and September 30, 2016, respectively |
8,416 |
|
|
8,416 |
|
Additional paid in capital |
18,351 |
|
|
18,155 |
|
Treasury
stock, at cost, 109,826 and 100,610 shares held at March 31, 2017
and September 30, 2016, respectively |
(4,586 |
) |
|
(4,585 |
) |
Retained
earnings |
154,604 |
|
|
151,504 |
|
Total Alico stockholders' equity |
176,785 |
|
|
173,490 |
|
Noncontrolling interest |
4,816 |
|
|
4,773 |
|
Total stockholders' equity |
181,601 |
|
|
178,263 |
|
Total liabilities and stockholders' equity |
$ |
459,959 |
|
|
$ |
455,445 |
|
ALICO, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) |
(in thousands) |
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
|
|
|
Net cash (used
in) provided by operating activities: |
$ |
(2,749 |
) |
|
$ |
12,138 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Purchases
of property and equipment |
(5,040 |
) |
|
(5,931 |
) |
Proceeds
from disposals of property and equipment |
2,651 |
|
|
— |
|
Other |
156 |
|
|
141 |
|
Net cash
used in investing activities |
(2,233 |
) |
|
(5,790 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Repayments on revolving lines of credit |
(47,082 |
) |
|
(45,132 |
) |
Borrowings on revolving lines of credit |
53,499 |
|
|
50,132 |
|
Principal
payments on term loans |
(5,381 |
) |
|
(5,381 |
) |
Contingent consideration paid |
— |
|
|
(3,750 |
) |
Treasury
stock purchases |
(641 |
) |
|
(3,141 |
) |
Dividends
paid |
(997 |
) |
|
(998 |
) |
Net cash
used in financing activities |
(602 |
) |
|
(8,270 |
) |
|
|
|
|
Net decrease in
cash and cash equivalents |
(5,584 |
) |
|
(1,922 |
) |
Cash and cash
equivalents at beginning of the period |
6,625 |
|
|
5,474 |
|
|
|
|
|
Cash and cash equivalents at end of the
period |
$ |
1,041 |
|
|
$ |
3,552 |
|
Non-GAAP
Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders |
$ |
5,833 |
|
|
$ |
8,734 |
|
|
$ |
4,098 |
|
|
$ |
5,722 |
|
Interest
expense |
2,374 |
|
|
2,475 |
|
|
4,701 |
|
|
4,978 |
|
Provision
for income taxes |
4,321 |
|
|
6,102 |
|
|
3,048 |
|
|
4,027 |
|
Depreciation and amortization |
3,880 |
|
|
4,036 |
|
|
7,796 |
|
|
8,044 |
|
EBITDA |
16,408 |
|
|
21,347 |
|
|
19,643 |
|
|
22,771 |
|
|
|
|
|
|
|
|
|
Consulting agreement expenses |
238 |
|
|
142 |
|
|
288 |
|
|
446 |
|
Gain on
sales of real estate |
(1,396 |
) |
|
(760 |
) |
|
(1,832 |
) |
|
(902 |
) |
Litigation expenses related to shareholder lawsuit |
— |
|
|
3 |
|
|
— |
|
|
403 |
|
Stock
compensation expense |
232 |
|
|
38 |
|
|
417 |
|
|
75 |
|
Transaction costs |
183 |
|
|
105 |
|
|
201 |
|
|
502 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
15,665 |
|
|
$ |
20,875 |
|
|
$ |
18,717 |
|
|
$ |
23,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings Per Diluted Common Share |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders |
$ |
5,833 |
|
|
$ |
8,734 |
|
|
$ |
4,098 |
|
|
$ |
5,722 |
|
Consulting agreement expenses |
238 |
|
|
142 |
|
|
288 |
|
|
446 |
|
Gain on
sales of real estate |
(1,396 |
) |
|
(760 |
) |
|
(1,832 |
) |
|
(902 |
) |
Litigation expenses related to shareholder lawsuit |
— |
|
|
3 |
|
|
— |
|
|
403 |
|
Stock
compensation expense |
232 |
|
|
38 |
|
|
417 |
|
|
75 |
|
Tax
impact |
315 |
|
|
194 |
|
|
393 |
|
|
(217 |
) |
Transaction costs |
183 |
|
|
105 |
|
|
201 |
|
|
502 |
|
|
|
|
|
|
|
|
|
Adjusted net
income |
$ |
5,405 |
|
|
$ |
8,456 |
|
|
$ |
3,565 |
|
|
$ |
6,029 |
|
|
|
|
|
|
|
|
|
Diluted common
shares |
8,327 |
|
|
8,303 |
|
|
8,326 |
|
|
8,309 |
|
|
|
|
|
|
|
|
|
Adjusted Earnings per
Diluted Common Share |
$ |
0.65 |
|
|
$ |
1.02 |
|
|
$ |
0.43 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free
Cash Flow |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net cash provided by
(used in) operating activities |
$ |
14,688 |
|
|
$ |
26,919 |
|
|
$ |
(2,749 |
) |
|
$ |
12,138 |
|
Adjustments for
non-recurring items: |
|
|
|
|
|
|
|
Consulting agreement expenses |
238 |
|
|
142 |
|
|
288 |
|
|
446 |
|
Litigation expenses related to shareholder lawsuit |
— |
|
|
3 |
|
|
— |
|
|
403 |
|
Tax
impact |
(178 |
) |
|
(103 |
) |
|
(207 |
) |
|
(559 |
) |
Transaction costs |
183 |
|
|
105 |
|
|
201 |
|
|
502 |
|
Capital
expenditures |
(2,683 |
) |
|
(2,943 |
) |
|
(5,040 |
) |
|
(5,931 |
) |
Adjusted Free Cash
Flow |
$ |
12,248 |
|
|
$ |
24,123 |
|
|
$ |
(7,507 |
) |
|
$ |
6,999 |
|
|
|
|
|
|
|
|
|
Alico utilizes the non-GAAP measures Adjusted
EBITDA, Adjusted Earnings per Diluted Common Share and Adjusted
Free Cash Flow among other measures, to evaluate the performance of
its business. Due to significant depreciable assets associated with
the nature of our operations and, to a lesser extent, interest
costs associated with our capital structure, management believes
that Adjusted EBITDA, Adjusted Earnings per Diluted Common Share,
and Adjusted Free Cash Flow are important measures to evaluate our
results of operations between periods on a more comparable basis
and to help investors analyze underlying trends in our business,
evaluate the performance of our business both on an absolute basis
and relative to our peers and the broader market, provides useful
information to both management and investors by excluding certain
items that may not be indicative of our core operating results and
operational strength of our business and helps investors evaluate
our ability to service our debt. Such measurements are not prepared
in accordance with accounting principles generally accepted in the
United States (“U.S. GAAP”) and should not be construed as an
alternative to reported results determined in accordance with U.S.
GAAP. The non-GAAP information provided is unique to Alico and may
not be consistent with methodologies used by other companies.
Adjusted EBITDA is defined as earnings before interest expense,
provision for income taxes, depreciation and amortization adjusted
for consulting agreement expenses, gain on sales of real estate,
litigation expenses related to shareholder lawsuit, stock
compensation expenses and transaction costs. Adjusted Earnings per
Diluted Common Share is defined as net income attributable to
common stockholders adjusted for consulting agreement expenses,
gain on sales of real estate, litigation expenses related to
shareholder lawsuit, stock compensation expenses and transaction
costs, all adjusted for estimated taxes, divided by diluted common
shares. Adjusted Free Cash Flow is defined as cash provided by
(used in) operating activities adjusted for consulting agreement
expenses, litigation expenses related to shareholder lawsuit and
transaction costs, all adjusted for estimated taxes, less capital
expenditures. The Company uses Adjusted Free Cash Flow to evaluate
its business and this measure is considered an important indicator
of the Company's liquidity, including its ability to reduce net
debt, make strategic investments and pay dividends to common
stockholders. The Company’s definition of Adjusted Free Cash Flow
does not represent residual cash flows available for discretionary
spending.
Investor Contact:
John E. Kiernan
Senior Vice President and Chief Financial Officer
(239) 226-2000
JKiernan@alicoinc.com
Alico (NASDAQ:ALCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alico (NASDAQ:ALCO)
Historical Stock Chart
From Apr 2023 to Apr 2024