Alico, Inc. has announced financial results for the second quarter of fiscal year 2021 and the six months ended March 31, 2021. These are the highlights:
- Market prices per pound solids have increased in fiscal year 2021, driven by increase in not-from-concentrate orange juice consumption and tighter citrus supply.
- Production of fruit and average pound solids per box are down from the previous year.
- Company modified fixed-rate term debt with Metlife and expects to reduce debt service between $5 million and $6 million per year until maturity in November 2029.
- Company closed a sales transaction with the State of Florida for approximately 5,734 acres and is under contract to sell, or in final negotiations to sell, approximately 15,000 additional acres of the Alico Ranch.
- Company generated approximately $25.6 million of operating cash flow in first six months of fiscal 2021.
- Company updates guidance for net income, EBITDA, adjusted net income and adjusted EBITDA for fiscal year 2021.
Results of Operations
For the six months ended March 31, 2021, the Company recorded net income attributable to Alico common stockholders of approximately $8.7 million and earnings of $1.16 per diluted common share, compared to net income attributable to Alico common stockholders of approximately $4.4 million and earnings of $0.58 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 greater revenue being generated from the Alico Citrus segment as a result of the increase in the price per pound solids being greater in the six months ended March 31, 2021, compared to the six months ended March 31, 2020. Partially offsetting this increase, has been a significant reduction in both production and average pound solids per box in the six months ended March 31, 2021 as compared to the same period in the prior year.
When both quarters are adjusted for certain non-recurring items, the Company had adjusted income of $0.43 per diluted common share for the six months ended March 31, 2021, compared to adjusted loss of $0.06 per diluted common share for the six months ended March 31, 2020. Adjusted EBITDA for the six months ended March 31, 2021 and March 31, 2020 was approximately $14.3 million and $9.5 million, respectively.
These financial results reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company's profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.
Tel. +1 (646) 277-1254