Earnings Alert: Alico Inc. (NASDAQ: ALCO)

FORT MYERS, Fla., October 31, 2019 – Shares of Alico Inc. (NASDAQ: ALCO) showed the bullish trend with a higher momentum of 0.72% to $32.05. The company traded total volume of 11.989K shares as contrast to its average volume of 8.23K shares. The company has a market value of $239.73M and about 7.48M shares outstanding.

For the nine months ended June 30, 2019, Alico, Inc. (ALCO) recorded net income attributable to Alico common stockholders of $21.30M and earnings of $2.85 per diluted common share, compared to net income attributable to Alico common stockholders of $12.30M and earnings of $1.48 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 increased processed box production in the current fiscal year, as compared to the prior fiscal year, and the impact of a valuation allowance resulting in tax expense for the nine months ended June 30, 2018. Partially offsetting this increase is (i) an increase in harvesting and hauling costs directly related to the increased processed box production; (ii) higher gain on sale of real estate, property and equipment and assets held for sale recorded in the nine months ended June 30, 2018, as compared to the same period in fiscal year 2019; and (iii) a one-time deferred tax benefit attributable to the federal corporate tax rate change enacted on December 22, 2017, that was recorded in the nine months ended June 30, 2018.

Other Corporate Financial Information:

General and administrative expenses increased by $0.90M to $10.80M for the nine months ended June 30, 2019. The increase was primarily due to an increase in professional fees of $2.30M during the nine months ended June 30, 2019 relating to a corporate litigation matter. This litigation has been resolved with a settlement being reached on February 11, 2019. The Company does not anticipate any further professional fees relating to this litigation. Additionally, as part of this settlement, the Company recorded consulting and separation fees of $0.80M during the nine months ended June 30, 2019. These increases were partially offset by an adjustment to stock compensation expense, a reduction in rent and a decrease in payroll expenses. The Company recorded a reduction in stock compensation expense of $0.80M as a result of a former senior executive forfeiting his stock options as part of the settled litigation. Rent expense was reduced by approximately $0.30M as a result of the Company not renewing its lease for office space in New York City. The reduction in payroll costs of approximately $0.90M was primarily from (i) a reduction in separation expenses of approximately $0.40M; (ii) a reduction in accrual for paid time off of approximately $0.30M; and (iii) a reduction in personnel and overtime costs of approximately $0.20M.

At June 30, 2019, the Company had working capital of $20.80M, and had term debt, net of cash and cash equivalents and restricted cash of $155.70M.

On August 1, 2019, the Company received $5.80M under the Florida Citrus Recovery Block Grant (“CRBG”) relating to Hurricane Irma. This represents the Part 1 of reimbursement under a three part program. The timing and amount to be received under Part 2 and Part 3 of the program, if any, has not been finalized.

The Company offered net profit margin of 18.00% while its gross profit margin was 41.40%. ROE was recorded as 13.10% while beta factor was 0.79. The stock, as of recent close, has shown the weekly downbeat performance of -4.33% which was maintained at 8.64% in this year.