Alico, Inc 10-Q for FY2022 Q1

Alico, Inc. (ALCO)

10-Q 2022-02-03 For: 2021-12-31

Added on April 06, 2026

About this 10-Q

Alico, Inc filed this 10-Q on February 3, 2022, covering the quarter ended December 31, 2021 (FY2022 Q1).

Headline figures

Quarter ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $15.34M; up 11.7% from $13.73M a year earlier
Net income: $10.13M; up 163.5% from net income of $3.85M a year earlier
Diluted EPS: $1.34; up 162.7% from $0.51 a year earlier

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☑	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the Quarterly Period Ended December 31, 2021

	or

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Florida			59-0906081
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
10070 Daniels Interstate Court
10070 Daniels Interstate Court
Suite 200	Fort Myers	FL	33913
(Address of principal executive offices)			(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ALCO	Nasdaq Global Select Market

Large Accelerated Filer	☐	Accelerated Filer	☑
Non-accelerated filer	☐	Smaller Reporting Company	☑
Emerging Growth Company	☐

Part I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements	1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures About Market Risk	32
Item 4. Controls and Procedures	32
Part II - OTHER INFORMATION	33
Item 1. Legal Proceedings	33
Item 1A. Risk Factors	33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3. Defaults Upon Senior Securities	33
Item 4. Mine Safety Disclosure	33
Item 5. Other Information	33
Item 6. Exhibits	34
Signatures	35


For the transition period
	from____________________	to_________________________


(239)	226-2000
(Registrant’s telephone number, including area code)

Condensed Consolidated Balance Sheets as of December 31, 2021 (Unaudited) and September 30, 2021	1
Condensed Consolidated Statements of Operations for the three months ended December 31, 2021 and 2020 (Unaudited)	2
Condensed Consolidated Statements of Changes in Equity for the three months ended December 31, 2021 and 2020 (Unaudited)	3
Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2021 and 2020 (Unaudited)	4
Notes to Condensed Consolidated Financial Statements (Unaudited)	5

	December 31,			September 30,
	2021			2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	69		$	886
Accounts receivable, net		8,901			6,105
Inventories		45,950			43,377
Income tax receivable		1,657			3,233
Assets held for sale		431			160
Prepaid expenses and other current assets		1,571			1,152
Total current assets		58,579			54,913

Property and equipment, net		373,159			373,231
Goodwill		2,246			2,246
Other non-current assets		2,898			2,827
Total assets	$	436,882		$	433,217

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,780		$	7,274
Accrued liabilities		8,045			9,872
Long-term debt, current portion		4,285			4,285
Other current liabilities		758			875
Total current liabilities		15,868			22,306

Long-term debt:
Principal amount, net of current portion		120,937			122,009
Less: deferred financing costs, net		(948	)		(986	)
Long-term debt less current portion and deferred financing costs, net		119,989			121,023
Lines of credit		9,377			—
Deferred income tax liabilities, net		37,101			41,977
Other liabilities		87			306
Total liabilities		182,422			185,612
Commitments and Contingencies (Note 12)
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 shares issued and 7,540,932 and 7,526,004 shares outstanding at December 31, 2021 and September 30, 2021, respectively		8,416			8,416
Additional paid in capital		20,080			19,989
Treasury stock, at cost, 875,213 and 890,141 shares held at December 31, 2021 and September 30, 2021, respectively		(29,399	)		(29,853	)
Retained earnings		250,012			243,651
Total Alico stockholders' equity		249,109			242,203
Noncontrolling interest		5,351			5,402
Total stockholders' equity		254,460			247,605
Total liabilities and stockholders' equity	$	436,882		$	433,217

	Three Months Ended December 31,
	2021			2020
Operating revenues:
Alico Citrus	$	14,748		$	12,926
Land Management and Other Operations		589			806
Total operating revenues		15,337			13,732
Operating expenses:
Alico Citrus		13,386			8,147
Land Management and Other Operations	140			188
Total operating expenses		13,526			8,335
Gross profit		1,811			5,397
General and administrative expenses		2,584			2,528
(Loss) income from operations		(773	)		2,869
Other income (expense), net:
Interest expense		(901	)		(1,189	)
Gain on sale of real estate, property and equipment and assets held for sale		8,445			3,364
Other income		9			10
Total other income, net		7,553			2,185
Income before income taxes		6,780			5,054
Income tax (benefit) provision		(3,300	)		1,250
Net income		10,080			3,804
Net loss attributable to noncontrolling interests		51			41
Net income attributable to Alico, Inc. common stockholders	$	10,131		$	3,845
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic	$	1.34		$	0.51
Diluted	$	1.34		$	0.51
Weighted-average number of common shares outstanding:
Basic		7,535			7,503
Diluted		7,542			7,503

Cash dividends declared per common share	$	0.50		$	0.18

					Additional								Total			Non-
	Common stock				Paid In		Treasury			Retained			Alico, Inc.			controlling			Total
	Shares		Amount		Capital		Stock			Earnings			Equity			Interest			Equity
Balance at September 30, 2021		8,416	$	8,416	$	19,989	$	(29,853	)	$	243,651		$	242,203		$	5,402		$	247,605
Net income (loss)		—		—		—		—			10,131			10,131			(51	)		10,080
Dividends ($0.50/share)		—		—		—		—			(3,770	)		(3,770	)		—			(3,770	)
Exercise of stock options		—		—		15		155			—			170			—			170
Stock-based compensation:
Directors		—		—		23		156			—			179			—			179
Executives and Managers		—		—		53		143			—			196			—			196
Balance at December 31, 2021		8,416	$	8,416	$	20,080	$	(29,399	)	$	250,012		$	249,109		$	5,351		$	254,460

(in thousands)
	Three Months Ended December 31,
	2021		2020
Alico Citrus
Early and Mid-Season	$	10,378	$	9,315
Fresh Fruit		879		409
Grove Management Services		3,418		3,092
Other		73		110
Total	$	14,748	$	12,926

Land Management and Other Operations
Land and Other Leasing	$	528	$	727
Other		61		79
Total	$	589	$	806

Total Revenues	$	15,337	$	13,732

(in thousands)	Carrying Value
	December 31,		September 30,
	2021		2021
Ranch	$	431	$	160
Total Assets Held for Sale	$	431	$	160

	December 31, 2021				September 30, 2021
(in thousands)	Principal		Deferred Financing Costs, Net		Principal		Deferred Financing Costs, Net
Long-term debt, net of current portion:
Met Fixed-Rate Term Loans	$	70,000	$	501	$	70,000	$	524
Met Variable-Rate Term Loans		37,375		230		38,094		241
Met Citree Term Loan		4,200		31		4,263		31
Pru Loans A & B		13,647		186		13,937		190
		125,222		948		126,294		986
Less current portion		4,285		—		4,285		—
Long-term debt	$	120,937	$	948	$	122,009	$	986

(in thousands)
	December 31, 2021
Due within one year	$	4,285
Due between one and two years		13,662
Due between two and three years		4,285
Due between three and four years		4,285
Due between four and five years		4,285
Due beyond five years		103,797

Total future maturities	$	134,599

(in thousands)	December 31,			September 30,
	2021			2021
Citrus trees	$	323,431		$	320,245
Equipment and other facilities		57,881			57,584
Buildings and improvements		8,482			8,494
Total depreciable properties		389,794			386,323
Less: accumulated depreciation and depletion		(130,266	)		(127,046	)
Net depreciable properties		259,528			259,277
Land and land improvements		113,631			113,954
Property and equipment, net	$	373,159		$	373,231

	December 31, 2021
Weighted-average remaining lease term	0.66 years
Weighted-average discount rate		2.30	%

2020 Option Grant
Expected Volatility		26.0	%
Expected Term (in years)	3.61
Risk Free Rate		1.60	%

(in thousands, except per box and per pound solids data)

	Three Months Ended
	December 31,						Change
	2021			2020			Unit			%
Operating Revenues:
Early and Mid-Season	$	10,378		$	9,315		$	1,063			11.4	%
Fresh Fruit		879			409			470			114.9	%
Purchase and Resale of Fruit		53			57			(4	)		(7.0	)%
Grove Management Services		3,418			3,092			326			10.5	%
Other		20			53			(33	)		(62.3	)%
Total	$	14,748		$	12,926		$	1,822			14.1	%
Boxes Harvested:
Early and Mid-Season		827			785			42			5.4	%
Total Processed		827			785			42			5.4	%
Fresh Fruit		69			48			21			43.8	%
Total		896			833			63			7.6	%
Pound Solids Produced:
Early and Mid-Season		4,021			4,132			(111	)		(2.7	)%
Total		4,021			4,132			(111	)		(2.7	)%
Pound Solids per Box:
Early and Mid-Season		4.86			5.26			(0.40	)		(7.6	)%
Price per Pound Solids:
Early and Mid-Season	$	2.58		$	2.25		$	0.33			14.7	%
Price per Box:
Fresh Fruit	$	12.74		$	8.52		$	4.22			49.5	%
Operating Expenses:
Cost of Sales	$	8,856		$	7,420		$	1,436			19.4	%
Harvesting and Hauling		2,361			2,079			282			13.6	%
Purchase and Resale of Fruit		46			50			(4	)		(8.0	)%
Grove Management Services		3,071			2,734			337			12.3	%
Other		(948	)		(4,136	)		3,188			(77.1	)%
Total	$	13,386		$	8,147		$	5,239			64.3	%

(in thousands except per share amounts)	Three Months Ended December 31,
	2021		2020
Net income attributable to Alico, Inc. common stockholders	$	10,131	$	3,845

Weighted average number of common shares outstanding - basic		7,535		7,503
Dilutive effect of equity-based awards		7		—
Weighted average number of common shares outstanding - diluted		7,542		7,503

Net income per common share attributable to Alico, Inc. common stockholders:
Basic	$	1.34	$	0.51
Diluted	$	1.34	$	0.51

(in thousands)	Three Months Ended December 31,
Operating lease components	2021		2020
Operating leases costs recorded in General and Administrative expenses	$	111	$	132

(in thousands, except share amounts)
	Shares			Cost
Balance as of September 30, 2021		890,141		$	29,853
Issued to employees and directors		(14,928	)		(454	)
Balance as of December 31, 2021		875,213		$	29,399

Exhibit Number		Exhibit Index

3.1		Restated Certificate of Incorporation, dated February 17, 1972 (incorporated by reference to Exhibit 3.1 of Alico's filing on Form 10-K dated December 11, 2017)

3.2		Certificate of Amendment to Certificate of Incorporation, dated January 14, 1974 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)

3.3		Amendment to Articles of Incorporation, dated January 14, 1987 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)

3.4		Amendment to Articles of Incorporation, dated December 27, 1988 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)

3.5		By-Laws of Alico, Inc., amended and restated (incorporated by reference to Exhibit 3.6 of Alico's filing on Form 8-K dated January 15, 2021)

10.1		Twelfth Amendment and Waiver to Credit Agreement by and among Alico, Inc., Alico-Agri, Ltd., Alico Plant World, L.L.C., Alico Fruit Company, LLC, Alico Land Development Inc., Alico Citrus Nursery, LLC and Rabo Agrifinance LLC (f/k/a Rabo Agrifinance, Inc.) dated November 17, 2021

10.2		Hunting Lease Agreement and Real Estate Purchase and Sale Option Agreement between Alico, Inc., and Mr. Kiernan, dated January 1, 2022

31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification

32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350

101.INS	*	Inline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

101.SCH	*	Inline XBRL Taxonomy Extension Schema Document

101.CAL	*	Inline XBRL Taxonomy Calculation Linkbase Document

101.DEF	*	Inline XBRL Taxonomy Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, has been formatted in Inline XBRL.
*		In accordance with Rule 406T of Regulation S-T, these XBRL (eXtensible Business Reporting Language) documents are furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

		ALICO, INC. (Registrant)

February 3, 2022	By:	/s/ John E. Kiernan
		John E. Kiernan
		President and Chief Executive Officer
		(Principal Executive Officer)


February 3, 2022	By:	/s/ Richard Rallo
		Richard Rallo
		Senior Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)