Alico, Inc. announced their financial results for the second quarter of fiscal year 2020 and the six months ended March 31, 2020.
The highlights of the financial report are as follows:
- The coronavirus outbreak (“COVID-19”) has had minimal impact on the Company’s harvest and business operations.
- The company paid a second quarter cash dividend and has no plans to reduce payout for the foreseeable future.
- Demand for Not-From-Concentrate orange juice surges - consumption increases 49.7% in trailing four-week period ended April 11, 2020 as compared to same period in prior year.
- The company has strengthened its liquidity by drawing down on its lines of credit to retain cash on its balance sheet during these uncertain times.
Results of Operations
For the six months ended March 31, 2020, the company earned net income attributable to Alico common stockholders of approximately $4.4 million and earnings of $0.58 per diluted common share, compared to net income attributable to Alico common stockholders of approximately $5.1 million and earnings of $0.68 per diluted common share in the prior year.
The decrease in net income attributable to Alico common stockholders is primarily due to a decline in the market price per pound solids for citrus fruit this season due to unfavorable industry supply dynamics and an increase in cost of goods sold specifically relating to the timing of the harvest. Partially offsetting this decrease was (i) an increase in Valencia boxes harvested relating to the timing of the harvest, (ii) funds awarded through the federal disaster relief program, (iii) a reduction in certain general and administrative costs and (iv) a gain on the sale of certain parcels on the east side of Alico Ranch.
When both periods are adjusted for certain non-recurring items, the company had adjusted net income of $0.01 per diluted common share for the six months ended March 31, 2020, compared to adjusted income of $1.12 per diluted common share for the six months ended March 31, 2019. Adjusted EBITDA for the six months ended March 31, 2020 and 2019 was $10.3 million and $21.3 million, respectively.
To see the full financial results, click here.