Alico, Inc. (“Alico” or the “Company”) (NASDAQ:ALCO), today
announces financial results for the third quarter and nine months
ended June 30, 2017. For the nine month period, the Company
earned $1.15 per share compared to $1.25 per share in the prior
year. 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 $1.10 per share in the nine month period of
fiscal year 2017 and $1.32 per share in the nine months of fiscal
year 2016.
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(in
thousands, except per share amounts) |
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Three Months Ended June 30, |
|
Nine Months Ended June 30, |
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2017 |
|
2016 |
|
Change |
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2017 |
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2016 |
|
Change |
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Net income |
$ |
5,472 |
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$ |
4,670 |
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|
$ |
802 |
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|
17.2 |
% |
|
$ |
9,613 |
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$ |
10,375 |
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$ |
(762 |
) |
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(7.3 |
)% |
EBITDA |
$ |
15,100 |
|
|
$ |
14,587 |
|
|
$ |
513 |
|
|
3.5 |
% |
|
$ |
34,743 |
|
|
$ |
37,359 |
|
|
$ |
(2,616 |
) |
|
(7.0 |
)% |
Earnings per diluted
common share |
$ |
0.66 |
|
|
$ |
0.56 |
|
|
$ |
0.10 |
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|
17.9 |
% |
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$ |
1.15 |
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$ |
1.25 |
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|
$ |
(0.10 |
) |
|
(8.0 |
)% |
Net cash provided
byoperating activities |
$ |
31,649 |
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|
$ |
22,047 |
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|
$ |
9,602 |
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|
43.6 |
% |
|
$ |
28,900 |
|
|
$ |
34,185 |
|
|
$ |
(5,285 |
) |
|
(15.5 |
)% |
Alico Citrus Division Results
Alico Citrus completed its 2016-17 harvest
season during the quarter ended June 30, 2017. Early and Mid-Season
box and pound solids production for the nine months were down 11.5%
and 11.0%, respectively, compared to the 2015-16 harvest.
Valencia box and pound solids production for the nine months were
down 22.2% and 21.1%, respectively, compared to the 2015-16
harvest. The decrease in production was partially offset by
increases in prices and pound solids per box. Early and Mid-Season
prices increased by 18.0% to $2.56 per pound solid compared to
$2.17 last year. Similarly, Valencia prices increased by
13.3% to $2.72 per pound solid compared to $2.40 last year.
Early and Mid-Season pound solids per box increased to 5.58
compared to 5.55 last year while Valencia pound solids per box
increased to 6.10 compared to 6.01 last year.
The USDA, in its July 12, 2017 Citrus Crop
Forecast for the 2016-17 harvest season, indicated that the Florida
orange crop finished at approximately 68,700,000 boxes which was
down from approximately 81,700,000 boxes for the 2015-16 crop year,
a decrease of approximately 15.9%. The Company’s
2016-17 production of all varieties totaled approximately 7,587,000
boxes representing a decrease of approximately 17.8% from the
2015-16 crop year.
Citrus production for the third quarter and nine
months ended June 30, 2017 and 2016 is summarized in the
following table.
(boxes and
pound solids in thousands) |
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Three Months Ended June 30, |
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Nine Months Ended June 30, |
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2017 |
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2016 |
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% Change |
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2017 |
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2016 |
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% Change |
Boxes
Harvested: |
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Early and
Mid-Season |
— |
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30 |
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(100.0 |
)% |
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3,215 |
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3,634 |
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(11.5 |
)% |
Valencias |
2,819 |
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|
2,854 |
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(1.2 |
)% |
|
4,044 |
|
|
5,195 |
|
|
(22.2 |
)% |
Total
Processed |
2,819 |
|
|
2,884 |
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(2.3 |
)% |
|
7,259 |
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|
8,829 |
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(17.8 |
)% |
Fresh
Fruit |
84 |
|
|
52 |
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61.5 |
% |
|
328 |
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|
401 |
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(18.2 |
)% |
Total |
2,903 |
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|
2,936 |
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(1.1 |
)% |
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7,587 |
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9,230 |
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(17.8 |
)% |
Pound Solids
Produced: |
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Early and
Mid-Season |
— |
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19 |
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(100.0 |
)% |
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17,950 |
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|
20,167 |
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(11.0 |
)% |
Valencias |
17,194 |
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17,338 |
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(0.8 |
)% |
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24,661 |
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31,237 |
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(21.1 |
)% |
Total |
17,194 |
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17,357 |
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(0.9 |
)% |
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42,611 |
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51,404 |
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(17.1 |
)% |
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Pound Solids
per Box: |
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Early and
Mid-Season
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NM |
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NM |
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NM |
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5.58 |
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5.55 |
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0.5 |
% |
Valencias |
6.10 |
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|
6.07 |
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0.5 |
% |
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6.10 |
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|
6.01 |
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1.5 |
% |
Price per Pound
Solids: |
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Early and
Mid-Season |
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NM |
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NM |
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NM |
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$ |
2.56 |
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$ |
2.17 |
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18.0 |
% |
Valencias |
$ |
2.72 |
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$ |
2.39 |
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13.8 |
% |
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$ |
2.72 |
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$ |
2.40 |
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13.3 |
% |
Alico Citrus continues to focus on efficiency
and cost control. Our cost of sales for the nine months ended
June 30, 2017 have decreased by approximately $2,700,000 compared
to the nine months ended June 30, 2016 despite the challenges
of unusual weather and disease; however, the cost of production per
pound solid increased 15.6% to $1.41 for the nine months ended
June 30, 2017 as compared to $1.22 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 nine months ended June 30, 2017 totaled $1.8
million compared to $2.5 million in the nine months ended
June 30, 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 $0.8 million
for the nine months ended June 30, 2017 compared to the nine
months ended June 30, 2016 due to the decrease in pounds sold
and a $0.6 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 nine
months ended June 30, 2017 totaled $10.9 million compared to
$9.5 million for the nine months ended June 30, 2016, an
increase of $1.4 million. General and administrative costs adjusted
for consulting agreements, litigation expenses, stock compensation
expense and transaction costs increased by approximately $1.7
million in the first nine months of fiscal 2017 compared to the
first nine months of fiscal year 2016. The increase was
primarily attributable to executive compensation-related
expenses.
Other expense, net was $5.1 million and $7.2
million for the nine months ended June 30, 2017 and 2016,
respectively. The decrease of $2.1 million is primarily
attributable to a $1.4 million increase in gains on real estate
sales and a $0.5 million decrease in interest expense.
The Company paid a third quarter cash dividend
of $0.06 per share on its outstanding common stock on July 15, 2017
to shareholders of record at June 30, 2017.
The Company ended the quarter with term debt,
net of cash and cash equivalents, of $179.2 million.
Effective June 30, 2017 the Company appointed
Mr. Richard Rallo the Chief Accounting Officer. Mr. Rallo
will be responsible for all corporate treasury and accounting
functions for Alico, Inc. and its subsidiaries.
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) |
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Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
revenues: |
|
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|
|
|
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|
Alico
Citrus |
$ |
49,993 |
|
|
$ |
45,639 |
|
|
$ |
122,537 |
|
|
$ |
135,916 |
|
Conservation and Environmental Resources |
1,001 |
|
|
877 |
|
|
1,789 |
|
|
2,528 |
|
Other
Operations |
524 |
|
|
337 |
|
|
837 |
|
|
902 |
|
Total
operating revenues |
51,518 |
|
|
46,853 |
|
|
125,163 |
|
|
139,346 |
|
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Operating
expenses: |
|
|
|
|
|
|
|
Alico
Citrus |
35,059 |
|
|
31,706 |
|
|
90,067 |
|
|
101,030 |
|
Conservation and Environmental Resources |
1,451 |
|
|
1,399 |
|
|
2,726 |
|
|
3,540 |
|
Other
Operations |
— |
|
|
65 |
|
|
93 |
|
|
212 |
|
Total
operating expenses |
36,510 |
|
|
33,170 |
|
|
92,886 |
|
|
104,782 |
|
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|
|
|
|
|
|
|
Gross
profit |
15,008 |
|
|
13,683 |
|
|
32,277 |
|
|
34,564 |
|
General and
administrative expenses |
3,709 |
|
|
2,747 |
|
|
10,896 |
|
|
9,521 |
|
|
|
|
|
|
|
|
|
Income from
operations |
11,299 |
|
|
10,936 |
|
|
21,381 |
|
|
25,043 |
|
|
|
|
|
|
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Other (expense) income: |
|
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|
|
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Interest
expense |
(2,223 |
) |
|
(2,470 |
) |
|
(6,924 |
) |
|
(7,448 |
) |
Gain
(loss) on sale of real estate |
157 |
|
|
(284 |
) |
|
1,989 |
|
|
618 |
|
Other
expense, net |
(96 |
) |
|
(120 |
) |
|
(120 |
) |
|
(419 |
) |
Total
other expense, net |
(2,162 |
) |
|
(2,874 |
) |
|
(5,055 |
) |
|
(7,249 |
) |
|
|
|
|
|
|
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|
Income before
income taxes |
9,137 |
|
|
8,062 |
|
|
16,326 |
|
|
17,794 |
|
Provision for income
taxes |
3,665 |
|
|
3,392 |
|
|
6,713 |
|
|
7,419 |
|
|
|
|
|
|
|
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Net
income |
5,472 |
|
|
4,670 |
|
|
9,613 |
|
|
10,375 |
|
Net loss (income)
attributable to noncontrollinginterests |
7 |
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|
11 |
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(36 |
) |
|
29 |
|
Net income
attributable to Alico, Inc. commonstockholders |
$ |
5,479 |
|
|
$ |
4,681 |
|
|
$ |
9,577 |
|
|
$ |
10,404 |
|
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Per share
information attributable to Alico, Inc.
common stockholders: |
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Earnings per
common share: |
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Basic |
$ |
0.66 |
|
|
$ |
0.56 |
|
|
$ |
1.15 |
|
|
$ |
1.25 |
|
Diluted |
$ |
0.66 |
|
|
$ |
0.56 |
|
|
$ |
1.15 |
|
|
$ |
1.25 |
|
Weighted-average number of common
sharesoutstanding: |
|
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|
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Basic |
8,293 |
|
|
8,309 |
|
|
8,315 |
|
|
8,299 |
|
Diluted |
8,364 |
|
|
8,309 |
|
|
8,340 |
|
|
8,309 |
|
|
|
|
|
|
|
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|
Cash dividends
declared per common share |
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
ALICO, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in thousands, except share
amounts) |
|
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|
|
|
June 30, |
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September 30, |
|
2017 |
|
2016 |
|
(unaudited) |
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|
ASSETS |
|
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|
Current
assets: |
|
|
|
Cash and
cash equivalents |
$ |
9,944 |
|
|
$ |
6,625 |
|
Accounts
receivable, net |
11,844 |
|
|
4,740 |
|
Inventories |
39,497 |
|
|
58,469 |
|
Income
tax receivable |
275 |
|
|
1,013 |
|
Assets
held for sale |
3,223 |
|
|
— |
|
Prepaid
expenses and other current assets |
2,419 |
|
|
1,024 |
|
Total current assets |
67,202 |
|
|
71,871 |
|
|
|
|
|
Property and equipment,
net |
376,010 |
|
|
379,247 |
|
Goodwill |
2,246 |
|
|
2,246 |
|
Deferred financing
costs, net of accumulated amortization |
325 |
|
|
389 |
|
Other non-current
assets |
1,438 |
|
|
1,692 |
|
Total assets |
$ |
447,221 |
|
|
$ |
455,445 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
1,502 |
|
|
$ |
5,975 |
|
Accrued
liabilities |
4,564 |
|
|
6,920 |
|
Long-term
debt, current portion |
4,525 |
|
|
4,493 |
|
Income
taxes payable |
1,539 |
|
|
— |
|
Obligations under capital leases, current portion |
8 |
|
|
288 |
|
Other
current liabilities |
947 |
|
|
1,002 |
|
Total current liabilities |
13,085 |
|
|
18,678 |
|
|
|
|
|
Long-term debt: |
|
|
|
Principal amount |
184,633 |
|
|
192,726 |
|
Less: deferred
financing costs, net |
(1,819 |
) |
|
(1,980 |
) |
Long-term debt less
deferred financing costs, net |
182,814 |
|
|
190,746 |
|
Lines of credit |
— |
|
|
5,000 |
|
Deferred tax
liability |
35,493 |
|
|
31,056 |
|
Deferred gain on
sale |
26,203 |
|
|
27,204 |
|
Deferred retirement
obligations |
4,179 |
|
|
4,198 |
|
Obligations under
capital leases |
9 |
|
|
300 |
|
Total liabilities |
261,783 |
|
|
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 |
|
|
|
|
|
8,261,308 and 8,315,535 shares outstanding at June 30, 2017
and September 30, 2016, respectively |
8,416 |
|
|
8,416 |
|
Additional paid in capital |
18,489 |
|
|
18,155 |
|
Treasury
stock, at cost, 154,837 and 100,610 shares held at June 30, 2017
and September 30, 2016, respectively |
(5,863 |
) |
|
(4,585 |
) |
Retained
earnings |
159,587 |
|
|
151,504 |
|
Total Alico stockholders' equity |
180,629 |
|
|
173,490 |
|
Noncontrolling interest |
4,809 |
|
|
4,773 |
|
Total stockholders' equity |
185,438 |
|
|
178,263 |
|
Total liabilities and stockholders' equity |
$ |
447,221 |
|
|
$ |
455,445 |
|
ALICO, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) |
(in thousands) |
|
|
|
|
|
Nine Months Ended June 30, |
|
2017 |
|
2016 |
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Net
income |
$ |
9,613 |
|
|
$ |
10,375 |
|
Adjustments to reconcile net income to net cash provided
byoperating activities: |
|
|
|
Gain on
sale of sugarcane land |
(422 |
) |
|
(618 |
) |
Depreciation, depletion and amortization |
11,529 |
|
|
12,088 |
|
Deferred
income taxes |
4,437 |
|
|
7,288 |
|
(Gain)
loss on sale of property and equipment |
(1,338 |
) |
|
626 |
|
Non-cash
interest expense on deferred gain on sugarcane land
|
1,060 |
|
|
1,051 |
|
Stock-based compensation expense |
1,230 |
|
|
635 |
|
Other |
145 |
|
|
473 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts
receivable |
(7,104 |
) |
|
(10,932 |
) |
Inventories |
17,350 |
|
|
14,147 |
|
Income
tax receivable |
738 |
|
|
861 |
|
Prepaid
expenses and other assets |
(1,359 |
) |
|
(1,193 |
) |
Accounts
payable and accrued expenses |
(6,826 |
) |
|
(196 |
) |
Income
tax payable |
1,539 |
|
|
— |
|
Other
liabilities |
(1,692 |
) |
|
(420 |
) |
Net cash
provided by operating activities |
28,900 |
|
|
34,185 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Purchases
of property and equipment |
(11,450 |
) |
|
(9,115 |
) |
Proceeds
from sale of property and equipment |
3,016 |
|
|
— |
|
Other |
155 |
|
|
164 |
|
Net cash
used in investing activities |
(8,279 |
) |
|
(8,951 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds
from term loans |
— |
|
|
2,500 |
|
Principal
payments on revolving lines of credit |
(70,770 |
) |
|
(53,882 |
) |
Borrowings on revolving lines of credit |
65,770 |
|
|
53,882 |
|
Principal
payments on term loans |
(8,061 |
) |
|
(8,080 |
) |
Contingent consideration paid |
— |
|
|
(7,500 |
) |
Treasury
stock purchases |
(2,174 |
) |
|
(3,141 |
) |
Dividends
paid |
(1,496 |
) |
|
(1,497 |
) |
Capital
lease obligation payments |
(571 |
) |
|
— |
|
Net cash
used in financing activities |
(17,302 |
) |
|
(17,718 |
) |
|
|
|
|
Net decrease in
cash and cash equivalents |
3,319 |
|
|
7,516 |
|
Cash and cash
equivalents at beginning of the period |
6,625 |
|
|
5,474 |
|
|
|
|
|
Cash and cash equivalents at end of the
period |
$ |
9,944 |
|
|
$ |
12,990 |
|
Non-GAAP
Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders |
$ |
5,479 |
|
|
$ |
4,681 |
|
|
$ |
9,577 |
|
|
$ |
10,404 |
|
Interest
expense |
2,223 |
|
|
2,470 |
|
|
6,924 |
|
|
7,448 |
|
Provision
for income taxes |
3,665 |
|
|
3,392 |
|
|
6,713 |
|
|
7,419 |
|
Depreciation and amortization |
3,733 |
|
|
4,044 |
|
|
11,529 |
|
|
12,088 |
|
EBITDA |
15,100 |
|
|
14,587 |
|
|
34,743 |
|
|
37,359 |
|
|
|
|
|
|
|
|
|
Consulting agreement expenses |
187 |
|
|
109 |
|
|
475 |
|
|
555 |
|
(Gain)
loss on sales of real estate |
(157 |
) |
|
284 |
|
|
(1,989 |
) |
|
(618 |
) |
Litigation expenses related to shareholder lawsuit |
— |
|
|
7 |
|
|
— |
|
|
410 |
|
Employee
stock compensation expense |
231 |
|
|
38 |
|
|
648 |
|
|
113 |
|
Transaction costs |
(5 |
) |
|
48 |
|
|
196 |
|
|
550 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
15,356 |
|
|
$ |
15,073 |
|
|
$ |
34,073 |
|
|
$ |
38,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings Per Diluted Common Share |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders |
$ |
5,479 |
|
|
$ |
4,681 |
|
|
$ |
9,577 |
|
|
$ |
10,404 |
|
Consulting agreement expenses |
187 |
|
|
109 |
|
|
475 |
|
|
555 |
|
Gain
(loss) on sales of real estate |
(157 |
) |
|
284 |
|
|
(1,989 |
) |
|
(618 |
) |
Litigation expenses related to shareholder lawsuit |
— |
|
|
7 |
|
|
— |
|
|
410 |
|
Employee
stock compensation expense |
231 |
|
|
38 |
|
|
648 |
|
|
113 |
|
Transaction costs |
(5 |
) |
|
48 |
|
|
196 |
|
|
550 |
|
Tax
impact |
(118 |
) |
|
(204 |
) |
|
275 |
|
|
(421 |
) |
|
|
|
|
|
|
|
|
Adjusted net
income |
$ |
5,617 |
|
|
$ |
4,963 |
|
|
$ |
9,182 |
|
|
$ |
10,993 |
|
|
|
|
|
|
|
|
|
Diluted common
shares |
8,364 |
|
|
8,309 |
|
|
8,340 |
|
|
8,309 |
|
|
|
|
|
|
|
|
|
Adjusted Earnings per
Diluted Common Share |
$ |
0.67 |
|
|
$ |
0.60 |
|
|
$ |
1.10 |
|
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free
Cash Flow |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net cash provided by
operating activities |
$ |
31,649 |
|
|
$ |
22,047 |
|
|
$ |
28,900 |
|
|
$ |
34,185 |
|
Adjustments for
non-recurring items: |
|
|
|
|
|
|
|
Consulting agreement expenses |
187 |
|
|
109 |
|
|
475 |
|
|
555 |
|
Litigation expenses related to shareholder lawsuit |
— |
|
|
7 |
|
|
— |
|
|
410 |
|
Transaction costs |
(5 |
) |
|
48 |
|
|
196 |
|
|
550 |
|
Tax
impact |
(69 |
) |
|
(73 |
) |
|
(276 |
) |
|
(632 |
) |
Capital
expenditures |
(6,477 |
) |
|
(3,184 |
) |
|
(11,517 |
) |
|
(9,115 |
) |
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow |
$ |
25,285 |
|
|
$ |
18,954 |
|
|
$ |
17,778 |
|
|
$ |
25,953 |
|
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 (loss) on sales of real
estate, litigation expenses related to shareholder lawsuit,
employee 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, employee 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 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
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