alco-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


			þ			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

						For the Quarterly Period Ended March 31, 2024

						or

			o			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period

from____________________ to _________________________

Commission File Number: 0-261


ALICO, INC.
(Exact name of registrant as specified in its charter)

Florida

59-0906081

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer Identification No.)

10070 Daniels Interstate Court

Suite 200

Fort Myers

33913

(Address of principal executive offices)

(Zip Code)


(239) 226-2000
(Registrant’s telephone number, including area code)


Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ALCO	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þYes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þYes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:


Large Accelerated Filer	o	Accelerated Filer	þ
Non-accelerated filer	o	Smaller Reporting Company	þ
Emerging Growth Company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

There were 7,624,185 shares of common stock outstanding at May 2, 2024.

Table of Contents

ALICO, INC.

FORM 10-Q

For the three and six months ended March 31, 2024 and 2023

Table of Contents


Part I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements			1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3. Quantitative and Qualitative Disclosures About Market Risk			29
Item 4. Controls and Procedures			29
Part II - OTHER INFORMATION
Item 1. Legal Proceedings			30
Item 1A. Risk Factors			30
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			30
Item 3. Defaults Upon Senior Securities			30
Item 4. Mine Safety Disclosure			30
Item 5. Other Information			30
Item 6. Exhibits			31
Signatures			32

PART I

Item 1. Condensed Consolidated Financial Statements

Index to Condensed Consolidated Financial Statements


Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and September 30, 2023			1
Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2024 and 2023 (Unaudited)			2
Condensed Consolidated Statements of Changes in Equity for the three and six months ended March 31, 2024 and 2023 (Unaudited)			3
Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2024 and 2023 (Unaudited)			5
Notes to Condensed Consolidated Financial Statements (Unaudited)			6

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Cautionary Note Regarding Forward-Looking Information

This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains certain forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact contained in this Quarterly Report are forward-looking statements, including without limitation, statements regarding future actions, business plans and prospects, prospective products, trends, future performance or results of current and anticipated products, sales efforts, expenses, interest rates, the outcome of contingencies, plans relating to dividends, government regulations, the adequacy of our liquidity to meet our needs for the foreseeable future, our expectations regarding the continued impact of Hurricane Ian, and our expectations regarding market conditions. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as such as “may,” “will,” “could,” “should,” “would,” “believes,” “expects,” “anticipates”, “estimates”, “projects,” “intends,” “plans” or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; harm to our reputation; tax risks associated with a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; Environmental, Social and Governance (“ESG”) issues, including those related to climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting; macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel; system security risks, data protection breaches, cyber-attacks and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and the other factors described under the sections “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2023 (the “2023 Annual Report on Form 10-K”). Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

As used in this Quarterly Report, unless otherwise specified or the context otherwise requires, references to “we,” “us,” “our,” the “Company” and “Alico” refer to the operations of Alico, Inc. and its consolidated subsidiaries.

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ALICO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)


	March 31, 2024		September 30, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	5,966	$	1,062
Accounts receivable, net	9,373		712
Inventories	29,719		52,481
Income tax receivable	—		1,200
Assets held for sale	4,891		1,632
Prepaid expenses and other current assets	1,634		1,718
Total current assets	51,583		58,805
Restricted cash	—		2,630
Property and equipment, net	360,209		361,849
Goodwill	2,246		2,246
Other non-current assets	2,735		2,823
Total assets	$	416,773	$	428,353

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,886	$	6,311
Accrued liabilities	3,381		5,363
Current portion of long-term debt	1,410		2,566
Income tax payable	8,021		—
Other current liabilities	515		825
Total current liabilities	20,213		15,065
Long-term debt, net	82,970		101,410
Lines of credit	—		24,722
Deferred income tax liabilities, net	36,880		36,410
Other liabilities	304		369
Total liabilities	140,367		177,976
Commitments and Contingencies (Note 12)
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 7,620,130 and 7,610,551 shares outstanding at March 31, 2024 and September 30, 2023, respectively	8,416		8,416
Additional paid in capital	20,109		20,045
Treasury stock, at cost, 796,015 and 806,341 shares held at March 31, 2024 and September 30, 2023, respectively	(26,969)		(27,274)
Retained earnings	270,182		243,804
Total Alico stockholders’ equity	271,738		244,991
Noncontrolling interest	4,668		5,386
Total stockholders’ equity	276,406		250,377
Total liabilities and stockholders’ equity	$	416,773	$	428,353

See accompanying notes to the unaudited condensed consolidated financial statements.

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ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share amounts)


	Three Months Ended March 31,				Six Months Ended March 31,
	2024		2023		2024		2023
Operating revenues:
Alico Citrus	$	17,762	$	20,937	$	31,354	$	31,205
Land Management and Other Operations	351		357		744		677
Total operating revenues	18,113		21,294		32,098		31,882
Operating expenses:
Alico Citrus	36,142		27,520		64,249		41,815
Land Management and Other Operations	129		102		262		196
Total operating expenses	36,271		27,622		64,511		42,011
Gross profit	(18,158)		(6,328)		(32,413)		(10,129)
General and administrative expenses	2,321		2,667		5,593		5,176
Loss from operations	(20,479)		(8,995)		(38,006)		(15,305)
Other income (expense), net:
Interest income	155		—		250		—
Interest expense	(663)		(1,274)		(2,268)		(2,422)
Gain on property and equipment	4		1,574		77,029		4,763
Other income, net	—		30		—		30
Total other income (expense), net	(504)		330		75,011		2,371
(Loss) income before income taxes	(20,983)		(8,665)		37,005		(12,934)
Income tax (benefit) provision	(4,970)		(534)		10,582		(1,617)
Net (loss) income	(16,013)		(8,131)		26,423		(11,317)
Net loss attributable to noncontrolling interests	209		344		718

SEC Form 10-Q filed by Alico Inc.