FORT MYERS, Fla., May 06, 2024 (GLOBE NEWSWIRE) -- Alico, Inc. ("Alico", the "Company", "we", or "our") (NASDAQ:ALCO) today announces financial results for the second quarter of fiscal year 2024 and the six months ended March 31, 2024, the highlights of which are as follows: Revenues of $32.1 million for the six months ended March 31, 2024 were relatively flat as compared to $31.9 million in the six months ended March 31, 2023. Net income attributable to Alico, Inc. common stockholders of $27.1 million and EBITDA of $47.3 million for the six months ended March 31, 2024. After adjusting for certain items, the Company reports Adjusted EBITDA of $(1.0) million for the six months ended March 31, 2024. Lower than anticipated box production for the Valencia Harvest, as the Company continues to recover from the effects of Hurricane Ian, resulted in an inventory write-down of $17.7 million for the quarter ended March 31, 2024. Trees treated with Oxytetracycline ("OTC") demonstrate an increase in yield, as compared to trees untreated in the prior fiscal year. We are in the process of negotiating new Citrus supply agreements, which we believe will provide for prices per pound solid over the next several years that will be significantly greater than the current year's prices per pound solid. The Company entered into an agreement to sell approximately 780 acres of underperforming citrus land for approximately $7.0 million ($9,000 per acre) in gross proceeds, that includes an option to purchase an additional 680 acres within ten months of the closing date of the sale, at the same price per acre. The transaction is expected to close at the end of July 2024. The Company maintains a strong balance sheet, with approximately $95.0 million available under lines of credit, a working capital ratio of 2.55 to 1.00 and a debt to equity ratio of 0.20 to 1.00 at March 31, 2024, with no significant maturities until 2029. Results of Operations (in thousands, except for per share amounts and percentages)                         Three Months Ended March 31,   Six Months Ended March 31,   2024   2023   % Change   2024   2023   % Change Revenue $ 18,113     $ 21,294     (14.9 )%   $ 32,098     $ 31,882     0.7 % Net (loss) income attributable to Alico, Inc. common stockholders $ (15,804 )   $ (7,787 )   (103.0 )%   $ 27,141     $ (10,937 )   348.2 % Earnings (loss) per diluted common share $ (2.07 )   $ (1.02 )   (102.9 )%   $ 3.56     $ (1.44 )   347.2 % EBITDA (1) $ (16,468 )   $ (3,150 )   (422.8 )%   $ 47,343     $ (2,285 )   NM   Adjusted EBITDA (1) $ 1,287     $ (7,795 )     116.5 %   $ (1,025 )   $ (11,237 )   90.9 % Net cash used in (provided by) operating activities $ (6,572 )   $ 2,555     (357.2 )%   $ (19,741 )   $ (7,110 )   (177.7 )%                           March 31,2024   September 30,2023   $ Change       March 31,2024   September 30,2023   (Unaudited)                     Balance Sheet Items                             Cash and cash equivalents $ 5,966     $ 1,062     $ 4,904     Working Capital Ratio   2.55 to 1     3.90 to 1   Current portion of long-term debt $ 1,410     $ 2,566     $ (1,156 )   Debt to equity ratio   0.20 to 1     0.30 to 1   Long-term debt, net $ 82,970     $ 101,410     $ (18,440 )                   Lines of credit $ —     $ 24,722     $ (24,722 )                   Net Debt (1) $ 78,414     $ 127,636     $ (49,222 )                   Total Alico stockholders' equity $ 271,738     $ 244,991     $ 26,747                                                   (1) "EBITDA," "Adjusted EBITDA" and "Net Debt" are non-GAAP financial measures. See "Non-GAAP Financial Measures" at the end of this earnings release for details regarding these measures, including reconciliations of the Non-GAAP Financial Measures to their most directly comparable GAAP measures. NM = Not meaningful For the three and six and months ended March 31, 2024, the Company reported a net (loss) income attributable to Alico common stockholders of $(15.8) million and $27.1 million, respectively, compared to a net loss attributable to Alico common stockholders of $7.8 million and $10.9 million for the three and six months ended March 31, 2023, respectively, driven by the timing of revenue in the current quarter and insurance proceeds of $4.8 million for crop claims received during the three months ended March 31, 2023 (the "Crop Insurance Proceeds") which was recorded as a reduction of operating expenses. The increase in our net income attributable to Alico common stockholders for the six months ended March 31, 2024 was driven by a gain of $74.9 million on the sale of the remaining 17,229 acres of the Alico Ranch on December 21, 2023, partially offset by inventory adjustments recorded at September 30, 2022 on the ending inventory balance, as a result of the impact of Hurricane Ian, which effectively lowered the inventory to be expensed in fiscal year 2023, a $12.2 million increase in the tax provision for the six months ended March 31, 2024 and the Crop Insurance Proceeds. For the three and six months ended March 31, 2024, the Company had (loss) earnings of $(2.07) and $3.56 per diluted common share, respectively, compared to a loss of $1.02 and $1.44 per diluted common share for the three and six months ended March 31, 2023, respectively. For the three and six months ended March 31, 2024, the Company had EBITDA of $(16.5) million and $47.3 million, respectively, compared to $(3.2) million and $(2.3) million for the three and six months ended March 31, 2023, respectively. Adjusted EBITDA for the three and six months ended March 31, 2024 and 2023 was approximately $1.3 million and $(1.0) million, respectively, and $(7.8) million and $(11.2) million, respectively. These quarterly financial results also reflect the seasonal nature of the Company's business. The majority of the Company's citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company's gross profit and cash flows from operating activities are typically recognized in those quarters and the Company's working capital requirements are typically greater in the first and fourth quarters of the fiscal year. Alico Citrus Division Results Citrus production for the three and six months ended March 31, 2024 and 2023 is summarized in the following table. (in thousands, except per box and per pound solids data)                                 Three Months Ended March 31,   Change   Six MonthsEnded March 31,   Change   2024   2023   Unit   %   2024   2023   Unit   % Boxes Harvested:                               Early and Mid-Season   147     174     (27 )   (15.5 )%     1,194     979     215     22.0 % Valencias   1,012     1,254     (242 )   (19.3 )%     1,012     1,254     (242 )   (19.3 )% Total Processed   1,159     1,428     (269 )   (18.8 )%     2,206     2,233     (27 )   (1.2 )% Fresh Fruit   4     4     —     — %     35     40     (5 )   (12.5 )% Total   1,163     1,432     (269 )   (18.8 )%     2,241     2,273     (32 )   (1.4 )% Pound Solids Produced:                               Early and Mid-Season   698     849     (151 )   (17.8 )%     5,364     4,586     778     17.0 % Valencias   5,071     6,560     (1,489 )   (22.7 )%     5,071     6,560     (1,489 )   (22.7 )% Total   5,769     7,409     (1,640 )   (22.1 )%     10,435     11,146     (711 )   (6.4 )% Pound Solids per Box:                               Early and Mid-Season   4.75     4.88     (0.13 )   (2.7 )%     4.49     4.68     (0.19 )   (4.1 )% Valencias   5.01     5.23     (0.22 )   (4.2 )%     5.01     5.23     (0.22 )   (4.2 )% Price per Pound Solids:                               Early and Mid-Season $ 3.06   $ 2.79   $ 0.27     9.7 %   $ 2.71   $ 2.61