There were 681 press releases posted in the last 24 hours and 158,519 in the last 365 days.

Alico, Inc. Announces Financial Results for Fiscal Year 2016 of $7.0 million of Net Income, $37.8 million of EBITDA and $30.4 million of Net Cash Provided by Operating Activities for the fiscal year

FORT MYERS, Fla., Dec. 02, 2016 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (NASDAQ:ALCO) today announces financial results for the fourth quarter and fiscal year ended September 30, 2016. For the fiscal year, the Company earned $0.84 per diluted common share compared to $1.64 per diluted common share in the prior year.  When both periods are adjusted for one-time items related to prior acquisitions including transaction costs, litigation, consulting fees, acquired inventory and real estate gains, the Company earned $0.94 per diluted common share in fiscal year 2016 and $1.73 per diluted common share in fiscal year 2015 primarily due to lower citrus production volume.

(in thousands except for per share amounts)                              
  Three Months Ended September 30,   Fiscal Year Ended September 30,
  2016   2015   Change   2016   2015   Change
                               
Net income (loss) $ (3,416 )   $ (5,426 )   $ 2,010     37.0 %   $ 6,959     $ 13,183     $ (6,224 )   (47.2 )%
EBITDA $ 430     $ 698     $ (268 )   (38.4 )%   $ 37,789     $ 47,217     $ (9,428 )   (20.0 )%
Earnings (loss) per diluted common share $ (0.41 )   $ (0.65 )   $ 0.24     36.9 %   $ 0.84     $ 1.64     $ (0.80 )   (48.8 )%
Net cash (used in) provided by operating activities $ (3,828 )   $ (2,623 )   $ (1,205 )   (45.9 )%   $ 30,357     $ 33,726     $ (3,369 )   (10.0 )%
 

Alico Executive Management Changes

The Board of Directors and management recognize that the three strategic acquisitions in fiscal years 2015 and 2014 have yet to be fully integrated.  As part of this next phase of integration, Alico is conducting cost savings programs, restructuring activities, and strategic initiatives in each division and at the corporate G&A level to improve its profitability and efficiency.  Alico Inc. has also begun to realign its management structure to optimize the financial returns on the assets of its Orange Co. and Conservation and Environmental Resources divisions.  Remy W. Trafelet will become President and Chief Executive Officer of the parent holding company, Alico Inc., on January 1, 2017.  He has led the Company’s Executive Committee as Chairman since 2013.  George Brokaw will become Executive Vice Chairman for Alico Inc., while Hank Slack will become Executive Chairman. Clay Wilson will step down as Chief Executive Officer on December 31, 2016.  Mr. Wilson will continue to serve as a member of the Alico Board of Directors.  He will continue to share his lifetime of experience with the Alico team and remains committed to his vision of strengthening Alico’s role within the Florida citrus industry.  Jerry Newlin, VP for Citrus Operations, will oversee the operational management of Orange Co.  Mr. Newlin previously supervised citrus operations for Orange-Co, LP prior to Alico’s acquisition of its assets in 2014 and has worked for Alico, Orange-Co, LP and predecessor companies in various capacities since 1978.  John Kiernan, CFO of the parent holding company, Alico Inc., will assume administrative duties for Orange Co. until a new General Manager for the Orange Co. division is recruited.  To improve the performance of our Conservation and Environmental Resources division, David L. Genho has been appointed President and General Manager, after successfully serving as Operations Manager during a 10-year career at Deseret Cattle & Citrus in St. Cloud, Florida.

Orange Co. Division Results

Orange Co.'s financial results declined during the year due to lower citrus production volume, a decline in pound solids per box and flat production costs compared to the prior year resulting in higher per unit costs, partially offset by higher prices.

Orange Co.'s 2016 crop production was lower by 17.4% on a pound solids basis and by 11.9% on a box basis for the year ended September 30, 2016.  The USDA estimated the Florida orange crop decreased by approximately 15.8% this past season as measured by total boxes produced.  Orange Co.’s early and mid-season pound solids decreased by 22.8% and boxes decreased by 18.2%; its late season Valencia pound solids decreased by 13.4% and boxes decreased by 6.7%. These declines were due to numerous factors including unusual weather patterns, such as El Nino and higher than normal temperatures during the early and mid-season harvest, and citrus greening resulting in a higher than normal level of drop and more unharvested fruit. The declines were partially mitigated by the acceleration of the Company’s late season harvesting activities to address premature fruit drop. Additionally, fruit quality was impacted as pound solids per box decreased from 6.21/box last year to 5.82/box. Citrus production for the years ended September 30, 2016 and 2015 is summarized in the following table.

                 
(boxes and pound solids in thousands)                
    Fiscal Year Ended
September 30,
       
      Change
    2016   2015   Unit   %
Boxes Harvested:                
Early and Mid-Season   3,634     4,445     (811 )   (18.2 )%
Valencias   5,195     5,569     (374 )   (6.7 )%
Total Processed   8,829     10,014     (1,185 )   (11.8 )%
Fresh Fruit   402     466     (64 )   (13.7 )%
Total   9,231     10,480     (1,249 )   (11.9 )%
Pound Solids Produced:                
Early and Mid-Season   20,167     26,139     (5,972 )   (22.8 )%
Valencias   31,237     36,083     (4,846 )   (13.4 )%
Total   51,404     62,222     (10,818 )   (17.4 )%
                 
Average Pound Solids Per Box   5.82   6.21     (0.39 )   (6.3 )%
                 
Price per Pound Solids:                
Early and Mid-Season   $ 2.18     $ 1.99     $ 0.19     9.5 %
Valencias   $ 2.41     $ 2.12     $ 0.29     13.7 %
                               

Orange Co. costs of production on a per pound solids basis increased 18.9% from $1.06 to $1.26 because of lower volumes supporting the cost base.  Those costs remained flat from the prior year, despite the challenges of unusual weather and disease, with cost of sales of $64.8 million compared to $65.6 million in 2015 (excluding an $8.1 million adjustment of the fair market value of acquired inventory).

Conservation and Environmental Resources Division Results

Operating (loss) income for the Conservation and Environmental Resources (“CER”) division was ($0.7) million in fiscal year 2016 compared to $0.6 million in the prior year, a decrease of $1.3 million. EBITDA for the cattle and ranch operations of the CER division declined from approximately $4.0 million in fiscal year 2015 to approximately $2.1 million primarily due to lower cattle prices.  CER financial results were negatively affected by $2.3 million in 2016 and $2.1 million in 2015 of operating costs related to the dispersed water storage project. Funding for the water project was included in the approved state budget in March 2016, but we are currently pursuing permits needed to commence construction.

Other Corporate Financial Information

Over the past year, Alico began to restructure its business by investing in information technology and management talent while still evaluating strategic acquisitions.  These initiatives increased its general and administrative costs on a recurring basis by $1.1 million. Corporate G&A expenses for the year ended September 30, 2016 totaled $13.2 million compared to $16.5 million for the year ended September 30, 2015, a decrease of $3.3 million. The decrease relates primarily to $4.7 million in non-recurring professional and legal fees associated with the Orange-Co, LP asset acquisition and the Silver Nip acquisition and $0.3 million in non-recurring consulting expenses in fiscal year 2015 offset by certain fiscal year 2016 expenses including $0.5 million in legal fees related to the shareholder litigation, $0.4 million in prior year bonus payments and $0.2 million in stock compensation.

Other (expense) income, net for the year ended September 30, 2016 was ($9.4) million compared to $4.6 million for the year ended September 30, 2015. The decrease of $14.0 million is primarily attributable to a $12.9 million decrease in partial gain recognition on the sale of the sugarcane land, a $1.1 million decrease in bargain purchase gains and a $1.5 million increase in interest expense offset by non-recurring fiscal year 2015 losses, including a $1.0 million loss on extinguishment of debt and a $0.5 million asset impairment.

The Company paid a fourth quarter cash dividend of $0.06 per share on its outstanding common stock on October 14, 2016, to shareholders of record at September 30, 2016.  Dividends for the year totaled $0.24 per share.

The Company ended the year with term debt, net of cash and cash equivalents, of $190.6 million.

About Alico

Alico Inc. is a holding company with assets and related operations in agriculture and environmental resources, including citrus, cattle ranching, water management, and mining. Our mission is to create value for shareholders by managing existing assets to their optimal current income and total returns, opportunistically acquiring new assets and producing high quality agricultural products while exercising responsible environmental stewardship. 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 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 opportunities; onetime events; acquisitions and divestitures, including our ability to achieve the anticipated results of the Orange-Co acquisition and Silver Nip merger; 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; 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.

                 
Non-GAAP Financial Measures                
                 
Adjusted EBITDA                
(in thousands)                
    Three Months Ended September 30,   Year Ended  September 30,
    2016   2015   2016   2015
                 
Net (loss) income attributable to common stockholders   $ (3,411 )   $ (5,395 )   $ 6,993     $ 13,214  
Interest expense   2,445     2,627     9,893     8,366  
Provision for income taxes   (1,898 )   (629 )   5,521     10,905  
Depreciation and amortization   3,294     4,095     15,382     14,732  
EBITDA   $ 430     $ 698     $ 37,789     $ 47,217  
                 
Acquired citrus inventory fair value adjustments       826         8,051  
Asset impairment               541  
Gain on bargain purchase       (1,145 )       (1,145 )
Gains on sale of real estate       (119 )   (618 )   (13,590 )
Litigation expenses related to shareholder lawsuit   96         506      
Loss on extinguishment of debt               1,051  
Payments on consulting agreements   50     430     605     1,893  
Stock compensation expense   150         150      
Transaction costs   342     591     892     4,592  
                 
Adjusted EBITDA   $ 1,068     $ 1,281     $ 39,324     $ 48,610  
                 
                 
Adjusted Earnings Per Common Share                
(in thousands)                
    Three Months Ended September 30,   Year Ended  September 30,
    2016   2015   2016   2015
                 
Net (loss) income attributable to common stockholders   $ (3,411 )   $ (5,395 )   $ 6,993     $ 13,214  
Acquired citrus inventory fair value adjustments       826         8,051  
Asset impairment               541  
Gain on bargain purchase       (1,145 )       (1,145 )
Gains on sale of real estate       (119 )   (618 )   (13,590 )
Litigation expenses related to shareholder lawsuit   96         506      
Loss on extinguishment of debt               1,051  
Payments on consulting agreements   50     430     605     1,893  
Stock compensation expense   150         150      
Transaction costs   342     591     892     4,592  
Tax impact   (305 )   (321 )   (679 )   (631 )
                 
Adjusted net (loss) income   $ (3,078 )   $ (5,133 )   $ 7,849     $ 13,976  
                 
Diluted common shares   8,315     8,328     8,311     8,061  
                 
Adjusted Earnings (Loss) per Diluted Common Share   $ (0.37 )   $ (0.62 )   $ 0.94     $ 1.73  
                 
Adjusted Free Cash Flow                
(in thousands)                
    Three Months Ended September 30,   Year Ended  September 30,
    2016   2015   2016   2015
                 
Net cash (used in) provided by operating activities   $ (3,828 )   $ (2,623 )   $ 30,357     $ 33,726  
Adjustments for non-recurring items:                
Litigation expenses related to shareholder lawsuit   96         506      
Payments on consulting agreements   50     430     605     1,893  
Transaction costs   342     591     892     4,592  
Tax impact   (254 )   (845 )   (886 )   (2,936 )
Capital expenditures   (5,190 )   (2,214 )   (14,305 )   (11,523 )
Adjusted Free Cash Flow   $ (8,784 )   $ (4,661 )   $ 17,169     $ 25,752  
                                 

Alico utilizes the non-GAAP measures 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 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, provides 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 helps 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. Adjusted EBITDA is defined as earnings before interest expense, provision for income taxes, depreciation and amortization adjusted 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. Adjusted Earnings per Diluted Common Share is defined as earnings adjusted for non-recurring transactions divided by diluted common shares. Adjusted Free Cash Flow is defined as cash provided by operations 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.

 
ALICO, INC.
CONSOLIDATED AND COMBINED  BALANCE SHEETS
(in thousands, except share amounts)
       
  September 30,
  2016   2015
ASSETS      
Current assets:      
Cash and cash equivalents $ 6,625     $ 5,474  
Accounts receivable, net 4,740     3,137  
Inventories 58,469     58,273  
Income tax receivable 1,013     2,088  
Prepaid expenses and other current assets 2,261     1,791  
Total current assets 73,108     70,763  
       
Property and equipment, net 379,247     381,099  
Goodwill 2,246     2,246  
Deferred financing costs, net of accumulated amortization 2,369     2,978  
Other non-current assets 1,692     3,002  
Total assets $ 458,662     $ 460,088  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Accounts payable $ 5,975     $ 4,407  
Accrued liabilities 6,920     13,813  
Long-term debt, current portion 4,493     4,511  
Deferred tax liability, current portion 53     151  
Obligations under capital leases, current portion 288     277  
Other current liabilities 1,002     975  
Total current liabilities 18,731     24,134  
       
Long-term debt 192,726     200,970  
Lines of credit 5,000      
Deferred tax liability 31,004     25,629  
Deferred gain on sale 28,440     29,122  
Deferred retirement obligations 4,198     4,134  
Obligations under capital leases 300     588  
Total liabilities 280,399     284,577  
       
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 8,315,535 and 8,325,580 shares outstanding at September 30, 2016 and September 30, 2015, respectively 8,416     8,416  
Additional paid in capital 18,155     19,795  
Treasury stock, at cost, 100,610 and 90,565 shares held at September 30, 2016 and September 30, 2015, respectively (4,585 )   (3,962 )
Retained earnings 151,504     146,455  
Total Alico stockholders' equity 173,490     170,704  
Noncontrolling interest 4,773     4,807  
Total stockholders' equity 178,263     175,511  
Total liabilities and stockholders' equity $ 458,662     $ 460,088  
               

/EIN News/ --

ALICO, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except per share amounts)
           
  Fiscal Year Ended September 30,
Operating revenues: 2016   2015   2014
Orange Co.          
Conservation and Environmental Resources $ 137,282     $ 146,147     $ 74,768  
Other Operations 5,669     5,394     8,172  
Total operating revenues 1,245     1,585     21,063  
  144,196     153,126     104,003  
Operating expenses:          
Orange Co.          
Conservation and Environmental Resources 102,347     110,236     54,956  
Other Operations 6,393     4,808     6,123  
Total operating expenses 397     2,083     21,730  
  109,137     117,127     82,809  
           
Gross profit 35,059     35,999     21,194  
General and administrative expenses 13,213     16,494     11,811  
           
Income from operations 21,846     19,505     9,383  
           
Other (expense) income:          
Investment and interest income, net     2     131  
Interest expense (9,893 )   (8,366 )   (2,368 )
Gain on bargain purchase     1,145      
Gain on sale of real estate 618     13,590     7,748  
Gain on settlement of contingent consideration arrangement         6,000  
Loss on extinguishment of debt     (1,051 )    
Impairment of asset held for sale     (541 )    
Other expense, net (91 )   (196 )   (16 )
Total other (expense) income, net (9,366 )   4,583     11,495  
           
Income before income taxes 12,480     24,088     20,878  
Provision for income taxes 5,521     10,905     11,383  
           
Net income 6,959     13,183     9,495  
Net loss attributable to noncontrolling interests 34     31      
Net income attributable to Alico, Inc. common stockholders 6,993     13,214     9,495  
Comprehensive income attributable to noncontrolling interests          
Comprehensive income attributable to Alico, Inc. common stockholders $ 6,993     $ 13,214     $ 9,495  
           
Per share information attributable to Alico, Inc. common stockholders:          
Earnings per common share:          
Basic $ 0.84     $ 1.64     $ 1.29  
Diluted $ 0.84     $ 1.64     $ 1.29  
Weighted-average number of common shares outstanding:          
Basic 8,303     8,056     7,336  
Diluted 8,311     8,061     7,354  
           
Cash dividends declared per common share $ 0.24     $ 0.24     $ 0.24  
                       


ALICO, INC.
CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS
(in thousands)
           
  Fiscal Year Ended September 30,
  2016   2015   2014
           
Cash flows from operating activities:          
Net income $ 6,959     $ 13,183     $ 9,495  
Adjustments to reconcile net income to net cash provided by operating activities:          
Gain on sale of sugarcane land (618 )   (13,734 )    
Depreciation and amortization 15,382     14,732     9,638  
Loss (gain) on breeding herd sales 296     (183 )   (555 )
Deferred income tax expense 5,277     12,350     6,806  
Cash surrender value (20 )   (27 )   202  
Deferred retirement benefits 65     623     (173 )
Magnolia Fund undistributed loss (earnings) 103     (57 )   (163 )
Loss (gain) on sale of property and equipment 147     (290 )   (6,742 )
Impairment of asset held for sale     541      
Loss on extinguishment of debt     457      
Non-cash interest expense on deferred gain on sugarcane land 1,406     607      
Stock-based compensation expense 925     952     1,835  
Other     245      
Changes in operating assets and liabilities:          
Accounts receivable (1,707 )   5,983     (2,676 )
Inventories (196 )   8,659     9,985  
Prepaid expenses (1,759 )   (1,347 )    
Income tax receivable 1,074         3,401  
Other assets 821     465     523  
Accounts payable and accrued expenses 3,720     (522 )   (8,599 )
Income tax payable     (6,660 )    
Other liabilities (1,518 )   (2,251 )   2,086  
Net cash provided by operating activities $ 30,357     $ 33,726     $ 25,063  
           
Cash flows from investing activities:          
Acquisition of citrus businesses, net of cash acquired $     $ (265,587 )   $ (32,769 )
Proceeds on sale of sugarcane land     97,151      
Purchases of property and equipment (14,305 )   (11,523 )   (13,280 )
Return on investment in Magnolia Fund 171     675     3,814  
Proceeds from sale of assets 799     1,963     14,473  
Proceeds from surrender of life insurance policies 297          
Proceeds from sale of real estate         5,764  
Other 4     264     10  
Net cash used in investing activities $ (13,034 )   $ (177,057 )   $ (21,988 )
           
Cash flows from financing activities:          
Borrowings notes payable $     $     $ 11,000  
Proceeds from term loans 2,500     184,500      
Repayments on revolving line of credit (53,882 )   (87,031 )   (2,400 )
Borrowings on revolving line of credit 58,882     81,031     3,641  
Repayment of term loan     (34,000 )    
Principal payments on term loans (10,761 )   (17,870 )   (3,208 )
Contingent consideration paid (7,500 )        
Financing costs     (2,834 )    
Treasury stock purchases (3,141 )   (4,013 )   (4,844 )
Dividends paid (1,993 )   (1,877 )   (2,780 )
Distributions to members         (605 )
Capital lease obligation payments (277 )   (231 )    
Net cash (used in) provided by financing activities $ (16,172 )   $ 117,675     $ 804  
           
Net increase (decrease) in cash and cash equivalents $ 1,151     $ (25,656 )   $ 3,879  
Cash and cash equivalents at beginning of the period 5,474     31,130     27,251  
           
Cash and cash equivalents at end of the period $ 6,625     $ 5,474     $ 31,130  
                       
Investor Contact:
John E. Kiernan
Senior Vice President and Chief Financial Officer
(239) 226-2000
JKiernan@alicoinc.com

Primary Logo