Alico, Inc. Announces Execution of New Four-Year Citrus Fruit Supply Agreements
May 21 2020 - 8:15AM
Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today
announces it has entered into two new agreements with its largest
customer to supply citrus fruit. These agreements are effective
October 1, 2020 and conclude on July 31, 2024 and succeed an
existing agreement that is set to expire at the end of September
2020.
John Kiernan, Alico’s President and Chief
Executive Officer, commented, “We are pleased to announce that we
have extended our relationship with our largest customer for 4 more
years. Alico is proud of the successful business relationship we
have been able to develop with this customer in recent years and we
are both committed to meeting the challenges facing the Florida
citrus industry with near-term patience and long-term focus. These
new supply agreements, in connection with our other continuing
agreements, commit substantially all of our citrus fruit and
incorporate certain increasing pricing provisions over the next
several seasons.”
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; weather conditions that affect production, transportation,
storage, demand, import and export of fresh product and their
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;
market pricing of citrus; 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; 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; the Company's
receipt of future funding from the state of Florida in connection
with water retention projects; impact of the coronavirus pandemic
on our agriculture operations, including without limitation demand
for product, supply chain, health and availability of our labor
force and the labor force of our competitors and access to
governmental loans and incentives; any reduction in the public
float resulting from repurchases of common stock by the Company;
changes in equity awards to employees; any increase in public float
resulting from the distribution by 734 Investors of its shares to
its members; whether the Company's dividend policy, including its
recent increased dividend amounts, is continued; expressed desire
of certain of our stockholders to liquidate their shareholdings by
virtue of past market sales of common stock by sales of common
stock or by way of future transactions; political changes and
economic crises; competitive actions by other companies; risks
related to the duration and severity of the COVID-19 outbreak and
its impact on the Company’s business; the impact of the COVID-19
outbreak on the U.S. and global economies and financial market;
increased competition from international companies; changes in
environmental regulations and their impact on farming practices;
the ability to secure permits for the Water Storage Contract and
Project from the South Florida Water Management District; the land
ownership policies of governments; changes in government farm
programs and policies and international reaction to such programs;
changes in pricing calculations with our customers; fluctuations in
the value of the U. S. dollar, interest rates, inflation and
deflation rates; length of terms of contracts with customers;
impact on concentration of sales to one customer; and changes in
and effects of crop insurance programs, global trade agreements,
trade restrictions and tariffs; and soil conditions, harvest
yields, prices for commodities, and crop production expenses.
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:
Investor Relations(646)
277-1254InvestorRelations@alicoinc.com
Richard RalloSenior Vice President and Chief Financial
Officer(239) 226-2000rrallo@alicoinc.com
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