The following is a summary of the Alico, Inc. (ALCO) Q1 2024 Earnings Call Transcript:
Financial Performance:
Alico reported a Q1 revenue increase of $3.3 million due to a 24.9% increase in pound solids and a 30.1% increase in process yield.
An inventory write-down of approximately $10.8 million led to increased operating expenses of $28.2 million.
General and administrative expenses rose due to an increase in salaries and wages of $0.6 million.
The company reported a significant turnaround with a net income of $42.9 million, up from a net loss of $3.2 million in the same period last fiscal year.
Following the sale of 17,229 acres of Alico Ranch, total debt was reduced by $44 million and net debt by $62 million.
Business Progress:
Alico has started recovery from Hurricane Ian with full recovery expected in another season.
Over 35% of Alico's producing trees were treated with an OTC trunk injection, expecting full benefits after the 2023-'24 harvest.
The company plans to apply the OTC therapy to all producing trees in 2024.
The sale of land to the State of Florida significantly increased other income expense.
Alico has full access to $95 million of undrawn credit, providing ample liquidity.
Evaluations of properties to determine their highest-value use are ongoing, aiming to create long-term shareholder value.
More details: Alico IR
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