alco-20241231

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 December 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	o
Non-accelerated filer	þ	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 7,637,657 shares of common stock outstanding at February 7, 2025.

Table of Contents

ALICO, INC.

FORM 10-Q

For the three months ended December 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			30
Item 4. Controls and Procedures			30
Part II - OTHER INFORMATION
Item 1. Legal Proceedings			31
Item 1A. Risk Factors			31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			43
Item 3. Defaults Upon Senior Securities			43
Item 4. Mine Safety Disclosure			43
Item 5. Other Information			43
Item 6. Exhibits			44
Signatures			46

PART I

Item 1. Condensed Consolidated Financial Statements

Index to Condensed Consolidated Financial Statements


Condensed Consolidated Balance Sheets as of December 31, 2024 (Unaudited) and September 30, 2024			1
Condensed Consolidated Statements of Operations for the three months ended December 31 , 2024 and 2023 (Unaudited)			2
Condensed Consolidated Statements of Changes in Equity for the three months ended December 31 , 2024 and 2023 (Unaudited)			3
Condensed Consolidated Statements of Cash Flows for the three months ended December 31 , 2024 and 2023 (Unaudited)			4
Notes to Condensed Consolidated Financial Statements (Unaudited)			5

Table of Contents

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, expectations regarding income taxes, statements regarding the Company’s planned Strategic Transformation (as defined herein) and reduction in force, plans to sell vehicles and equipment used in the Company’s citrus production operations, expectations regarding acceleration of depreciation of the remaining book value of the Company’s citrus trees, the future of the Company’s land holdings, expectations of third parties for the provision of caretaking services for certain acres, 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: our implementation of our planned Strategic Transformation; our plan to wind down our citrus production operations to focus on our long-term diversified land usage and real estate development strategy; our ability to secure necessary regulatory approvals and permits for land development projects, effectively manage and allocate resources to new business initiatives, attract and retain skilled personnel with expertise in diversified land usage and real estate development, navigate potential market fluctuations and economic conditions, maintain strong relationships with lenders and continue to satisfy covenants and conditions under current loan agreements and address potential environmental and zoning issues, and other challenges inherent in real estate development; our ability to increase our revenues from land usage and real estate development; adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms; risks related to our expected significant revenue shift to real estate development and diversified farming operations; our ability to effectively perform grove management services, or to effectively manage our portfolio of groves; our relationship with Tropicana; if certain criteria are not met under one of our contracts with Tropicana, we could experience a significant reduction in revenues and cash flows; 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 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 and the deadly conflicts in Ukraine and Israel; system security risks, data protection breaches, cybersecurity incidents 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 this Quarterly Report. 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)


	December 31, 2024		September 30, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,388	$	3,150

Accounts receivable, net	8,602		771
Inventories	20,814		30,084
Income tax receivable	1,958		1,958
Assets held for sale	3,345		3,106
Prepaid expenses and other current assets	1,711		1,558
Total current assets	40,818		40,627
Restricted cash	762		248
Property and equipment, net	350,907		352,733
Goodwill	2,246		2,246
Other non-current assets	2,863		2,865
Total assets	$	397,596	$	398,719

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,236	$	3,362
Accrued liabilities	3,293		5,366
Current portion of long-term debt	1,410		1,410

Other current liabilities	498		513
Total current liabilities	8,437		10,651
Long-term debt, net	81,984		82,313
Lines of credit	21,494		8,394
Deferred income tax liabilities, net	38,694		40,873
Other liabilities	146		193
Total liabilities	150,755		142,424
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 7,633,069 and 7,628,639 shares outstanding at December 31, 2024 and September 30, 2024, respectively	8,416		8,416
Additional paid in capital	20,226		20,184
Treasury stock, at cost, 783,076 and 787,506 shares held at December 31, 2024 and September 30, 2024, respectively	(26,557)		(26,694)
Retained earnings	239,704		249,253
Total Alico stockholders’ equity	241,789		251,159
Noncontrolling interest	5,052		5,136
Total stockholders’ equity	246,841		256,295
Total liabilities and stockholders’ equity	$	397,596	$	398,719

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 December 31,
	2024		2023
Operating revenues:
Alico Citrus	$	16,326	$	13,592
Land Management and Other Operations	568		393
Total operating revenues	16,894		13,985
Operating expenses:
Alico Citrus	25,111		28,107
Land Management and Other Operations	21		133
Total operating expenses	25,132		28,240
Gross loss	(8,238)		(14,255)
General and administrative expenses	2,586		3,272
Loss from operations	(10,824)		(17,527)
Other (expense) income, net:
Interest income	47		95
Interest expense	(898)		(1,605)
Gain on sale of property and equipment	—		77,025
Other income, net	244		—
Total other (expense) income, net	(607)		75,515
(Loss) income before income taxes	(11,431)		57,988
Income tax (benefit) provision	(2,180)		15,552
Net (loss) income	(9,251)		42,436
Net loss attributable to noncontrolling interests	84		509
Net (loss) income attributable to Alico, Inc. common stockholders	$	(9,167)	$	42,945
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic	$	(1.20)	$	5.64
Diluted	$	(1.20)	$	5.64
Weighted-average number of common shares outstanding:
Basic	7,633		7,616
Diluted	7,633		7,616

Cash dividends declared per common share	$	0.05	$	0.05

See accompanying notes to the unaudited condensed consolidated financial statements.

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ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(in thousands)


		For the Three Months Ended December 31, 2024

	Common stock			Additional Paid In Capital		Treasury Stock			Retained Earnings		Total Alico, Inc. Equity		Non- controlling Interest		Total Equity
	Shares	Amount				Shares (1)	Amount
Balance at September 30, 2024	8,416	$	8,416	$	20,184	788	$	(26,694)	$	249,253	$	251,159	$	5,136	$	256,295
Net (loss) income	—	—		—		—	—		(9,167)		(9,167)		(84)		(9,251)
Dividends ($0.05/share)	—	—		—		—	—		(382)		(382)		—		(382)


Stock-based compensation	—	—		42		(4)	137		—		179		—		179






Balance at December 31, 2024	8,416	$	8,416	$	20,226	783	$	(26,557)	$	239,704	$	241,789	$	5,052	$	246,841
1 - Shares may not foot due to rounding.


		Three Months Ended December 31, 2023

	Common stock			Additional Paid In Capital		Treasury Stock			Retained Earnings		Total Alico, Inc. Equity		Non- controlling Interest		Total Equity
	Shares	Amount				Shares	Amount
Balance at September 30, 2023	8,416	$	8,416	$	20,045	806	$	(27,274)	$	243,804	$	244,991	$	5,386	$	250,377
Net income (loss)	—	—		—		—	—		42,945		42,945		(509)		42,436
Dividends ($0.05/share)	—	—		—		—	—		(381)		(381)		—		(381)


Stock-based compensation		—		19		(6)	175		—		194		—		194






Balance at December 31, 2023	8,416	$	8,416	$	20,064	800	$	(27,099)	$	286,368	$	287,749	$	4,877	$	292,626

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ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)


	Three Months Ended December 31,
	2024		2023
Net cash used in operating activities
Net (loss) income	$	(9,251)	$	42,436
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion and amortization	3,824		3,804
Amortization of debt issue costs	55		120
Gain on sale of property and equipment	—		(77,025)
Loss on disposal of long-lived assets	780		225
Inventory net realizable value adjustment	7,359		10,846
Deferred income tax benefit	(2,179)		—
Stock-based compensation expense	179		194
Other	(107)		36
Changes in operating assets and liabilities:
Accounts receivable	(7,831)		(7,174)
Inventories	1,911		(169)
Prepaid expenses	(153)		(1,708)
Income tax receivable	—		1,200
Other assets	(35)		2
Accounts payable and accrued liabilities	(2,199)		(1,320)
Income taxes payable	—		15,552
Other liabilities	50		(188)
Net cash used in operating activities	(7,597)		(13,169)

Cash flows from investing activities:
Purchases of property and equipment	(3,017)		(3,490)

Net proceeds from sale of property and equipment	—		79,090

Change in deposits on purchase of citrus trees	—		(375)
Net cash (used in) provided by investing activities	(3,017)		75,225

Cash flows from financing activities:
Repayments on revolving lines of credit	(6,200)

SEC Form 10-Q filed by Alico Inc.