Alico, Inc. (“Alico” or the “Company”) (Nasdaq:ALCO) today
announces financial results for the third quarter and nine months
ended June 30, 2019. For the nine months ended June 30,
2019, the Company recorded net income attributable to Alico
common stockholders of $21.3 million and earnings of $2.85 per
diluted common share, compared to net income attributable to Alico
common stockholders of $12.3 million and earnings of $1.48 per
diluted common share in the same period in the prior year. The
increase in net income attributable to Alico common stockholders is
primarily due to increased processed box production in the current
fiscal year, as compared to the prior fiscal year, and the impact
of a valuation allowance resulting in tax expense for the nine
months ended June 30, 2018. Partially offsetting this increase
is (i) an increase in harvesting and hauling costs directly related
to the increased processed box production; (ii) higher gain on sale
of real estate, property and equipment and assets held for sale
recorded in the nine months ended June 30, 2018, as compared
to the same period in fiscal year 2019; and (iii) a one-time
deferred tax benefit attributable to the federal corporate tax rate
change enacted on December 22, 2017, that was recorded in the nine
months ended June 30, 2018.
When both periods are adjusted for non-recurring
items related to transaction costs, separation and consulting fees,
gains on sale of real estate, property and equipment and assets
held for sale, employee stock compensation expense, impairment of
long-lived assets, tender offer expenses, professional fees related
to corporate matters, insurance proceeds from Hurricane Irma,
change in fair value of derivatives, forfeiture of stock options,
net deferred tax and other valuation allowances, the Company had
adjusted earnings of $3.26 per diluted common share for the nine
months ended June 30, 2019, compared to an adjusted earnings
of $0.13 per diluted common share for the nine months ended
June 30, 2018. Adjusted EBITDA for the nine months ended
June 30, 2019 and 2018 was $48.1 million and $19.6 million,
respectively.
These financial results reflect the seasonal
nature of Alico’s business and the impact of Hurricane Irma in
fiscal year 2018. Historically, the second and third quarters of
Alico's fiscal year produce the majority of the Company's annual
revenue, and working capital requirements are typically greater in
the first and fourth quarters. Due to Hurricane Irma, Alico
harvested fruit earlier in fiscal year 2018 than in prior fiscal
years and in fiscal year 2019.
The Company reported the following financial results:
(in thousands, except for per
share amounts) |
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Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2019 |
|
2018 |
|
Change |
|
2019 |
|
2018 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Alico, Inc. common stockholders |
$ |
16,244 |
|
|
$ |
9,100 |
|
|
$ |
7,144 |
|
|
78.5 |
% |
|
$ |
21,324 |
|
|
$ |
12,332 |
|
|
$ |
8,992 |
|
|
72.9 |
% |
EBITDA (1) |
$ |
26,962 |
|
|
$ |
19,634 |
|
|
$ |
7,328 |
|
|
37.3 |
% |
|
$ |
44,472 |
|
|
$ |
30,015 |
|
|
$ |
14,457 |
|
|
48.2 |
% |
Earnings per diluted common
share |
$ |
2.17 |
|
|
$ |
1.09 |
|
|
$ |
1.08 |
|
|
99.1 |
% |
|
$ |
2.85 |
|
|
$ |
1.48 |
|
|
$ |
1.37 |
|
|
92.6 |
% |
Net cash provided by operating
activities |
$ |
35,618 |
|
|
$ |
16,370 |
|
|
$ |
19,248 |
|
|
117.6 |
% |
|
$ |
41,686 |
|
|
$ |
16,119 |
|
|
$ |
25,567 |
|
|
158.6 |
% |
|
(1) See “Non-GAAP
Financial Measures” at the end of this earnings release for details
regarding these measures. |
|
Alico Citrus Division
Results
During the nine months ended June 30, 2019,
Alico Citrus harvested 8.1 million boxes of fruit, an increase of
68.1% from the same period in the prior fiscal year. The increase
was directly related to the negative impact of Hurricane Irma on
the prior fiscal year harvest. As a result of Hurricane Irma, the
Company experienced a greater amount of fruit drop and consequently
harvested a smaller number of boxes in fiscal year 2018. The
Company also saw an overall increase in pound solids per box which
was 5.91 for the nine months ended June 30, 2019, as compared to
5.64 for the nine months ended June 30, 2018. The Company
experienced a reduction in the price per pound solids largely
attributable to the Early and Mid-Season and Valencia crop being
greater than initially anticipated throughout Florida.
The Company originally estimated its fiscal year
2019 processed boxes would increase by approximately 31-37%
compared to processed boxes for fiscal year 2018. However, based on
the harvesting of fruit for the 2019 harvesting season, the Company
increased production for fiscal year 2019 by approximately 68%
compared to processed boxes for fiscal year 2018. The improvement
is the result of both the Early and Mid-season and Valencia variety
fruit experiencing less fruit drop than originally anticipated.
Citrus production for the three and nine months
ended June 30, 2019 and 2018 is summarized in the following
table.
(in thousands,
except per box and per pound solids data) |
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Three Months Ended |
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Nine Months Ended |
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June 30, |
|
Change |
|
June 30, |
|
Change |
|
2019 |
|
2018 |
|
Unit |
|
% |
|
2019 |
|
2018 |
|
Unit |
|
% |
Boxes
Harvested: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Early and Mid-Season |
— |
|
|
— |
|
|
— |
|
|
NM |
|
3,114 |
|
|
1,811 |
|
|
1,303 |
|
|
71.9 |
% |
Valencias |
3,492 |
|
|
1,421 |
|
|
2,071 |
|
|
145.7 |
% |
|
4,790 |
|
|
2,891 |
|
|
1,899 |
|
|
65.7 |
% |
Total Processed |
3,492 |
|
|
1,421 |
|
|
2,071 |
|
|
145.7 |
% |
|
7,904 |
|
|
4,702 |
|
|
3,202 |
|
|
68.1 |
% |
Fresh Fruit |
74 |
|
|
27 |
|
|
47 |
|
|
174.1 |
% |
|
210 |
|
|
124 |
|
|
86 |
|
|
69.4 |
% |
Total |
3,566 |
|
|
1,448 |
|
|
2,118 |
|
|
146.3 |
% |
|
8,114 |
|
|
4,826 |
|
|
3,288 |
|
|
68.1 |
% |
|
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|
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Pound Solids
Produced: |
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|
|
|
|
|
|
|
|
Early and Mid-Season |
— |
|
|
— |
|
|
— |
|
|
NM |
|
16,873 |
|
|
9,194 |
|
|
7,679 |
|
|
83.5 |
% |
Valencias |
22,023 |
|
|
8,668 |
|
|
13,355 |
|
|
154.1 |
% |
|
29,854 |
|
|
17,319 |
|
|
12,535 |
|
|
72.4 |
% |
Total |
22,023 |
|
|
8,668 |
|
|
13,355 |
|
|
154.1 |
% |
|
46,727 |
|
|
26,513 |
|
|
20,214 |
|
|
76.2 |
% |
|
|
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Average Pound Solids
per Box: |
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|
|
|
|
|
Early and Mid-Season |
— |
|
|
— |
|
|
— |
|
|
NM |
|
5.42 |
|
|
5.07 |
|
|
0.35 |
|
|
6.9 |
% |
Valencias |
6.31 |
|
|
6.10 |
|
|
0.21 |
|
|
3.4 |
% |
|
6.23 |
|
|
5.99 |
|
|
0.24 |
|
|
4.0 |
% |
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Price per Pound
Solids: |
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|
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Early and Mid-Season |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
NM |
|
$ |
2.35 |
|
|
$ |
2.64 |
|
|
$ |
(0.29 |
) |
|
(11.0 |
)% |
Valencias |
$ |
2.49 |
|
|
$ |
2.80 |
|
|
$ |
(0.31 |
) |
|
(11.1 |
)% |
|
$ |
2.46 |
|
|
$ |
2.82 |
|
|
$ |
(0.36 |
) |
|
(12.8 |
)% |
NM - Not meaningful |
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Water Resources and Other
Operations Division Results
Operating results for the Water Resources
and Other Operations Division for the nine months ended
June 30, 2019 improved by $1.6 million from the nine months
ended June 30, 2018, primarily due to the Company selling its
cattle herd in late January 2018, and as such, are no longer
incurring expenses relating to calves and culls. As part of
this transaction, the Company entered into a long-term arrangement
with the purchaser for grazing rights on the ranch. The Company
continues to own the property and conduct its long-term water
dispersement program and wildlife management programs.
Other Corporate Financial
Information
General and administrative expenses increased by
$0.9 million to $10.8 million for the nine months ended
June 30, 2019. The increase was primarily due to an increase
in professional fees of $2.3 million during the nine months ended
June 30, 2019 relating to a corporate litigation matter. This
litigation has been resolved with a settlement being reached on
February 11, 2019. The Company does not anticipate any further
professional fees relating to this litigation. Additionally, as
part of this settlement, the Company recorded consulting and
separation fees of $0.8 million during the nine months ended
June 30, 2019. These increases were partially offset by an
adjustment to stock compensation expense, a reduction in rent and a
decrease in payroll expenses. The Company recorded a reduction in
stock compensation expense of $0.8 million as a result of a former
senior executive forfeiting his stock options as part of the
settled litigation. Rent expense was reduced by approximately $0.3
million as a result of the Company not renewing its lease for
office space in New York City. The reduction in payroll costs of
approximately $0.9 million was primarily from (i) a reduction in
separation expenses of approximately $0.4 million; (ii) a reduction
in accrual for paid time off of approximately $0.3 million; and
(iii) a reduction in personnel and overtime costs of approximately
$0.2 million.
Other (expense), income, which primarily
consists of interest expense, change in fair value of derivatives
and gain or loss on sale of real estate, property and equipment and
assets held for sale, was $(6.5) million for the nine months ended
June 30, 2019, as compared to other income of $2.6 million for
the nine months ended June 30, 2018. The shift of other income
to other (expense) of $9.0 million is primarily due to the Company
recording gains on sale of real estate, property and equipment and
assets held for sale of approximately $9.1 million during the nine
months ended June 30, 2018.
The Company paid a third quarter cash dividend
of $0.06 per share on its outstanding common stock on July 12, 2019
to shareholders of record as of June 28, 2019.
At June 30, 2019, the Company had working
capital of $20.8 million, and had term debt, net of cash and cash
equivalents and restricted cash of $155.7 million.
On August 1, 2019, the Company received $5.8
million under the Florida Citrus Recovery Block Grant (“CRBG”)
relating to Hurricane Irma. This represents the Part 1 of
reimbursement under a three part program. The timing and amount to
be received under Part 2 and Part 3 of the program, if any, has not
been finalized.
About Alico
Alico, Inc. primarily operates two divisions:
Alico Citrus, one of the nation’s largest citrus producers, and
Alico Water Resources and Other Operations, a leading water storage
and environmental services division. 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; changes in the political environment and agendas; 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 and corporate opportunities; onetime events; acquisitions
and divestitures; seasonality; our ability to achieve the
anticipated cost savings under the Alico 2.0 Modernization Program;
customer concentration; 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.
Investor Contact:
John MillsICR, Managing Partner(646)
277-1254InvestorRelations@alicoinc.com
Richard RalloSenior Vice President and Chief Financial
Officer(239) 226-2000rrallo@alicoinc.com
|
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ALICO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in
thousands, except share amounts) |
|
|
|
|
|
June 30, |
|
September 30, |
|
2019 |
|
2018 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
3,519 |
|
|
$ |
25,260 |
|
Accounts receivable, net |
6,285 |
|
|
2,544 |
|
Inventories |
30,706 |
|
|
41,033 |
|
Assets held for sale |
2,086 |
|
|
1,391 |
|
Prepaid expenses and other current assets |
1,521 |
|
|
833 |
|
Total current assets |
44,117 |
|
|
71,061 |
|
|
|
|
|
Restricted cash |
7,006 |
|
|
7,000 |
|
Property and equipment,
net |
343,604 |
|
|
340,403 |
|
Goodwill |
2,246 |
|
|
2,246 |
|
Deferred financing costs, net
of accumulated amortization |
21 |
|
|
136 |
|
Other non-current assets |
2,525 |
|
|
2,576 |
|
Total assets |
$ |
399,519 |
|
|
$ |
423,422 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
4,318 |
|
|
$ |
3,764 |
|
Accrued liabilities |
6,097 |
|
|
9,226 |
|
Long-term debt, current portion |
5,325 |
|
|
5,275 |
|
Income taxes payable |
6,570 |
|
|
2,320 |
|
Other current liabilities |
1,043 |
|
|
913 |
|
Total current liabilities |
23,353 |
|
|
21,498 |
|
|
|
|
|
Long-term debt: |
|
|
|
Principal amount, net of
current portion |
160,855 |
|
|
169,074 |
|
Less: deferred financing
costs, net |
(1,416 |
) |
|
(1,563 |
) |
Long-term debt less current
portion and deferred financing costs, net |
159,439 |
|
|
167,511 |
|
Lines of credit |
— |
|
|
2,685 |
|
Deferred income tax
liabilities |
29,311 |
|
|
25,153 |
|
Deferred gain on sale |
— |
|
|
24,928 |
|
Deferred retirement
obligations |
3,887 |
|
|
4,052 |
|
Other liabilities |
246 |
|
|
— |
|
Total liabilities |
216,236 |
|
|
245,827 |
|
|
|
|
|
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 and 8,416,145 shares issued and 7,470,031 and 8,199,957
shares outstanding at June 30, 2019 and September 30, 2018,
respectively |
8,416 |
|
|
8,416 |
|
Additional paid in capital |
19,756 |
|
|
20,126 |
|
Treasury stock, at cost, 946,114 and 216,188 shares held at June
30, 2019 and September 30, 2018, respectively |
(32,205 |
) |
|
(7,536 |
) |
Retained earnings |
181,989 |
|
|
151,111 |
|
Total Alico stockholders' equity |
177,956 |
|
|
172,117 |
|
Noncontrolling interest |
5,327 |
|
|
5,478 |
|
Total stockholders' equity |
183,283 |
|
|
177,595 |
|
Total liabilities and stockholders' equity |
$ |
399,519 |
|
|
$ |
423,422 |
|
|
|
|
|
|
ALICO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (in thousands, except per share amounts) |
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating
revenues: |
|
|
|
|
|
|
|
Alico Citrus |
$ |
56,819 |
|
|
$ |
25,711 |
|
|
$ |
118,539 |
|
|
$ |
77,499 |
|
Water Resources and Other Operations |
746 |
|
|
806 |
|
|
2,326 |
|
|
2,151 |
|
Total operating revenues |
57,565 |
|
|
26,517 |
|
|
120,865 |
|
|
79,650 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Alico Citrus |
31,141 |
|
|
13,697 |
|
|
73,597 |
|
|
56,102 |
|
Water Resources and Other Operations |
420 |
|
|
906 |
|
|
1,768 |
|
|
3,219 |
|
Total operating expenses |
31,561 |
|
|
14,603 |
|
|
75,365 |
|
|
59,321 |
|
Gross
profit: |
26,004 |
|
|
11,914 |
|
|
45,500 |
|
|
20,329 |
|
General and administrative
expenses |
2,682 |
|
|
2,955 |
|
|
10,786 |
|
|
9,914 |
|
|
|
|
|
|
|
|
|
Income from operations |
23,322 |
|
|
8,959 |
|
|
34,714 |
|
|
10,415 |
|
|
|
|
|
|
|
|
|
Other (expense)
income: |
|
|
|
|
|
|
|
Interest expense |
(1,745 |
) |
|
(2,188 |
) |
|
(5,625 |
) |
|
(6,682 |
) |
Gain on sale of real estate, property and equipment and assets held
for sale |
114 |
|
|
7,248 |
|
|
137 |
|
|
9,083 |
|
Change in fair value of derivatives |
— |
|
|
— |
|
|
(989 |
) |
|
— |
|
Other income, net |
8 |
|
|
14 |
|
|
18 |
|
|
158 |
|
Total other (expense), income |
(1,623 |
) |
|
5,074 |
|
|
(6,459 |
) |
|
2,559 |
|
|
|
|
|
|
|
|
|
Income before income
taxes |
21,699 |
|
|
14,033 |
|
|
28,255 |
|
|
12,974 |
|
Income tax provision |
5,483 |
|
|
4,941 |
|
|
7,082 |
|
|
674 |
|
|
|
|
|
|
|
|
|
Net
income |
16,216 |
|
|
9,092 |
|
|
21,173 |
|
|
12,300 |
|
Net loss attributable to
noncontrolling interests |
28 |
|
|
8 |
|
|
151 |
|
|
32 |
|
Net income
attributable to Alico, Inc. common stockholders |
$ |
16,244 |
|
|
$ |
9,100 |
|
|
$ |
21,324 |
|
|
$ |
12,332 |
|
Per share information
attributable to Alico, Inc. common stockholders: |
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
2.17 |
|
|
$ |
1.11 |
|
|
$ |
2.85 |
|
|
$ |
1.50 |
|
Diluted |
$ |
2.17 |
|
|
$ |
1.09 |
|
|
$ |
2.85 |
|
|
$ |
1.48 |
|
Weighted-average
number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
7,470 |
|
|
8,228 |
|
|
7,470 |
|
|
8,243 |
|
Diluted |
7,471 |
|
|
8,324 |
|
|
7,494 |
|
|
8,314 |
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share |
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALICO, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) (in
thousands) |
|
|
|
Nine Months Ended June 30, |
|
2019 |
|
2018 |
|
|
|
|
Net cash provided by
operating activities: |
|
|
|
Net income |
$ |
21,173 |
|
|
$ |
12,300 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Deferred gain on sale of sugarcane land |
— |
|
|
(767 |
) |
Depreciation, depletion and amortization |
10,441 |
|
|
10,327 |
|
Deferred income tax provision |
454 |
|
|
649 |
|
Gain on sale of real estate, property and equipment and assets held
for sale |
(137 |
) |
|
(8,315 |
) |
Change in fair value of derivatives |
989 |
|
|
— |
|
Impairment of long-lived assets |
244 |
|
|
1,855 |
|
Non-cash interest expense on deferred gain on sugarcane land |
— |
|
|
1,021 |
|
Stock-based compensation expense |
537 |
|
|
1,337 |
|
Other |
(160 |
) |
|
(285 |
) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
(3,741 |
) |
|
(4,510 |
) |
Inventories |
10,327 |
|
|
6,478 |
|
Prepaid expenses and other assets |
(480 |
) |
|
(892 |
) |
Accounts payable and accrued liabilities |
(2,587 |
) |
|
(594 |
) |
Income tax payable |
4,250 |
|
|
— |
|
Other liabilities |
376 |
|
|
(2,485 |
) |
Net cash provided by operating activities |
41,686 |
|
|
16,119 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Purchases of property and equipment |
(14,567 |
) |
|
(12,129 |
) |
Net proceeds from sale of property and equipment and assets held
for sale |
419 |
|
|
31,671 |
|
Change in deposits on purchase of citrus trees |
(256 |
) |
|
— |
|
Notes receivables |
56 |
|
|
(379 |
) |
Net cash (used in) provided by investing activities |
(14,348 |
) |
|
19,163 |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Repayments on revolving lines of credit |
(86,123 |
) |
|
(21,424 |
) |
Borrowings on revolving lines of credit |
83,438 |
|
|
21,424 |
|
Principal payments on term loans |
(8,169 |
) |
|
(9,421 |
) |
Treasury stock purchases |
(25,576 |
) |
|
(2,215 |
) |
Payment on termination of Global Ag agreement |
(11,300 |
) |
|
— |
|
Dividends paid |
(1,343 |
) |
|
(1,480 |
) |
Capital contribution received from noncontrolling interest |
— |
|
|
1,000 |
|
Capital lease obligation payments |
— |
|
|
(8 |
) |
Net cash used in financing activities |
(49,073 |
) |
|
(12,124 |
) |
|
|
|
|
Net (decrease)
increase in cash and cash equivalents and restricted
cash |
(21,735 |
) |
|
23,158 |
|
Cash and cash equivalents and
restricted cash at beginning of the period |
32,260 |
|
|
3,395 |
|
|
|
|
|
Cash and cash equivalents and restricted cash at end of the
period |
$ |
10,525 |
|
|
$ |
26,553 |
|
|
Non-GAAP Financial
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
$ |
16,244 |
|
|
$ |
9,100 |
|
|
$ |
21,324 |
|
|
$ |
12,332 |
|
Interest expense |
1,745 |
|
|
2,188 |
|
|
5,625 |
|
|
6,682 |
|
Income tax provision |
5,483 |
|
|
4,941 |
|
|
7,082 |
|
|
674 |
|
Depreciation, depletion and amortization |
3,490 |
|
|
3,405 |
|
|
10,441 |
|
|
10,327 |
|
EBITDA |
26,962 |
|
|
19,634 |
|
|
44,472 |
|
|
30,015 |
|
|
|
|
|
|
|
|
|
Transaction costs |
— |
|
|
10 |
|
|
— |
|
|
98 |
|
Impairment of long-lived assets |
244 |
|
|
1,855 |
|
|
244 |
|
|
1,855 |
|
Stock compensation expense (1) |
114 |
|
|
242 |
|
|
684 |
|
|
715 |
|
Separation and consulting agreement expense (2) |
— |
|
|
— |
|
|
800 |
|
|
188 |
|
Tender offer expense |
— |
|
|
— |
|
|
32 |
|
|
— |
|
Professional fees relating to corporate matters |
— |
|
|
— |
|
|
2,283 |
|
|
— |
|
Change in fair value of derivatives |
— |
|
|
— |
|
|
989 |
|
|
— |
|
Forfeiture of stock options (3) |
— |
|
|
— |
|
|
(823 |
) |
|
— |
|
Insurance proceeds - Hurricane Irma |
(486 |
) |
|
(4,185 |
) |
|
(486 |
) |
|
(4,185 |
) |
Gains on sale of real estate and property and equipment and assets
held for sale |
(114 |
) |
|
(7,248 |
) |
|
(137 |
) |
|
(9,083 |
) |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
26,720 |
|
|
$ |
10,308 |
|
|
$ |
48,058 |
|
|
$ |
19,603 |
|
|
|
|
|
(1) Includes
stock compensation expense for current and former executives. |
(2) Includes
consulting and compensation fees for former CEO. |
(3) Includes
forfeitures of stock options by former CEO, resulting in the
reversal of previously recorded stock compensation expense. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings Per Diluted Common Share |
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net income attributable to
common stockholders |
$ |
16,244 |
|
|
$ |
9,100 |
|
|
$ |
21,324 |
|
|
$ |
12,332 |
|
Impairment of long-lived assets |
244 |
|
|
1,855 |
|
|
244 |
|
|
1,855 |
|
One-time deferred tax adjustment due to new tax legislation |
— |
|
|
106 |
|
|
— |
|
|
(9,971 |
) |
Valuation allowance on capital loss carryforward |
— |
|
|
— |
|
|
— |
|
|
6,060 |
|
Transaction costs |
— |
|
|
10 |
|
|
— |
|
|
98 |
|
Stock compensation expense (1) |
114 |
|
|
242 |
|
|
684 |
|
|
715 |
|
Separation and consulting agreement expense (2) |
— |
|
|
— |
|
|
800 |
|
|
188 |
|
Tender offer expense |
— |
|
|
— |
|
|
32 |
|
|
— |
|
Professional fees relating to corporate matters |
— |
|
|
— |
|
|
2,283 |
|
|
— |
|
Change in fair value of derivatives |
— |
|
|
— |
|
|
989 |
|
|
— |
|
Forfeiture of stock options (3) |
— |
|
|
— |
|
|
(823 |
) |
|
— |
|
Insurance proceeds - Hurricane Irma |
(486 |
) |
|
(4,185 |
) |
|
(486 |
) |
|
(4,185 |
) |
Gains on sale of real estate and property and equipment and assets
held for sale |
(114 |
) |
|
(7,248 |
) |
|
(137 |
) |
|
(9,083 |
) |
Tax impact |
64 |
|
|
2,677 |
|
|
(468 |
) |
|
3,065 |
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to common stockholders |
$ |
16,066 |
|
|
$ |
2,557 |
|
|
$ |
24,442 |
|
|
$ |
1,074 |
|
|
|
|
|
|
|
|
|
Diluted common shares |
7,471 |
|
|
8,324 |
|
|
7,494 |
|
|
8,314 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per diluted
common share |
$ |
2.15 |
|
|
$ |
0.31 |
|
|
$ |
3.26 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
(1) Includes
stock compensation expense for current and former executives. |
(2) Includes
consulting and compensation fees for former CEO. |
(3) Includes
forfeitures of stock options by former CEO, resulting in the
reversal of previously recorded stock compensation expense. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net cash provided by operating
activities |
$ |
35,618 |
|
|
$ |
16,370 |
|
|
$ |
41,686 |
|
|
$ |
16,119 |
|
Adjustments for non-recurring
items: |
|
|
|
|
|
|
|
Transaction costs |
— |
|
|
10 |
|
|
— |
|
|
98 |
|
Separation and consulting agreement expense (1) |
— |
|
|
— |
|
|
800 |
|
|
188 |
|
Tender offer expense |
— |
|
|
— |
|
|
32 |
|
|
— |
|
Professional fees relating to corporate matters |
— |
|
|
— |
|
|
2,283 |
|
|
— |
|
Insurance proceeds - Hurricane Irma |
(486 |
) |
|
(4,185 |
) |
|
(486 |
) |
|
(4,185 |
) |
Tax impact |
129 |
|
|
690 |
|
|
(476 |
) |
|
622 |
|
Capital expenditures |
(5,043 |
) |
|
(4,691 |
) |
|
(14,567 |
) |
|
(12,129 |
) |
Adjusted Free Cash Flow |
$ |
30,218 |
|
|
$ |
8,194 |
|
|
$ |
29,272 |
|
|
$ |
713 |
|
|
|
|
|
|
|
|
|
(1) Includes
consulting and compensation fees for former CEO. |
|
Alico utilizes the non-GAAP measures EBITDA,
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 EBITDA, 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, provide 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 help
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. EBITDA is defined as net
income before interest expense, provision for income taxes,
depreciation and amortization. Adjusted EBITDA is defined as net
income before interest expense, provision for income taxes,
depreciation and amortization and adjustments for non-recurring
transactions or transactions that are not indicative of our core
operating results, such as gains or losses on sales of real estate,
property and equipment and assets held for sale. Adjusted Income
per Diluted Common Share is defined as net income adjusted for
non-recurring transactions divided by diluted common shares.
Adjusted Free Cash Flow is defined as cash provided by operating
activities adjusted for non-recurring transactions 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.
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