Alico, Inc. announces financial results for the second quarter of fiscal year 2022 and the six months ended March 31, 2022, the highlights which are as follows:
- Box production is down from the previous year due to greater fruit drop and freeze event.
- Average pound solids per box this quarter are down from the previous year.
- Market prices per pound solids increase in fiscal year 2022.
- Company executed three-year option agreement with third party to sell approximately 899 citrus acres for $11,500 per acre.
- Momentum of ranch land sales continued with latest transaction for approximately 645 acres at $5,400 per acre.
- Balance sheet remains strong with a working capital ratio of 2.88 to 1.00.
Results of Operations
For the six months ended March 31, 2022, the Company recorded net income attributable to Alico common stockholders of approximately $30.8 million and earnings of $4.08 per diluted common share, compared to net income attributable to Alico common stockholders of approximately $8.7 million and earnings of $1.16 per diluted common share in the same period in the prior year.
The increase in net income attributable to Alico common stockholders is due to (i) an increased amount of gain on the sale of real estate, property and equipment and assets held for sale being recorded in the six months ended March 31, 2022, compared to the six months ended March 31, 2021, primarily due to the sale of certain parcels of land from the Alico Ranch and (ii) the Company’s recognition in the six months ended March 31, 2022 of a charitable deduction associated with the sale of certain acres to the State of Florida, which resulted in the Company recording a tax benefit for the period.
Partially offsetting this increase in net income attributable to Alico common stockholders was (i) the reduction in revenue generated from citrus operations from lower processed box production and pound solids per box due to greater fruit drop and a freeze event that occurred in late January 2022, (ii) the receipt by the Company of a lower amount of proceeds under the Florida Citrus Recovery Block Grant (“CRBG”) program in the six months ended March 31, 2022, compared to the six months ended March 31, 2021, as the reimbursement under the CRBG program is now substantially complete and (iii) the increase in cost of sales as a larger percentage of costs were allocated to cost of sales in the six months ended March 31, 2022 because the Company harvested a greater percentage of boxes, in relation to the estimated total boxes to be harvested for the full season, during the six months ended March 31, 2022, as compared to the same period in the prior year.