The following is a summary of the Alico, Inc. (ALCO) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Alico reported a net income of $7 million for the fiscal year 2024, up from $1.8 million in the previous fiscal year. Adjusted EBITDA improved to a loss of $3.8 million from a loss of $16.1 million year over year.

• Earnings per diluted common share increased to $0.91 in 2024, up from $0.24 in 2023.

• The company recognized a substantial gain of $81.4 million from land sales, specifically the sale of 17,229 acres to the State of Florida.

• They encountered a significant inventory impairment charge of $19.5 million due to lower estimated harvest for 2024-2025.

Business Progress:

• Faced with ongoing post-Hurricane Ian challenges, Alico continues to focus on operational resilience.

• Entered a beneficial new Orange Purchase Agreement with Tropicana, securing prices 33% to 50% higher over the life of the contract.

• Sold significant land holdings to bolster financial stability and reduce debt, notably repaying all outstanding borrowings under the line of credit and a $19.1 million balance of the MetLife variable term rate debt.

• Extended the maturity of the revolving credit facility with MetLife to 2034, enhancing liquidity management.

Opportunities:

• The new contract with Tropicana at significantly higher prices than the previous season presents an opportunity to boost revenue from citrus sales.

• OTC injections to improve citrus health and reduce fruit drop are expected to enhance crop yields and quality.

Risks:

• Alico's operations continue to be heavily impacted by weather events, with Hurricanes Ian and Milton causing significant fruit drop and operational disruptions.

• Uncertainties in predicting crop sizes and quality due to varying impacts of agricultural diseases like citrus greening.

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