NASDAQ$ALCO

Alico Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Alico's financial performance declined due to lower market prices for citrus fruit and increased cost of goods sold, though Valencia boxes harvested increased and federal disaster relief funds were awarded.

Alico Inc. reported a decrease in net income attributable to common stockholders for the second quarter of fiscal year 2020, primarily due to a decline in citrus fruit market prices and an increase in cost of goods sold. The company has strengthened its liquidity by drawing down on its lines of credit.

  • The coronavirus outbreak has had minimal impact on the Company’s harvest and business operations.
  • Company paid a second quarter cash dividend and has no plans to reduce payout for the foreseeable future.
  • Demand for Not-From-Concentrate orange juice surges, with consumption increasing 49.7% in the trailing four-week period ended April 11, 2020, compared to the same period in the prior year.
  • Company has strengthened its liquidity by drawing down on its lines of credit to retain cash on its balance sheet during these uncertain times.

Headline financials

Total Revenue

$50.5M

Previous: $48.5M+4.1%
EPS (adj)

$0.29

Previous: $1.24-76.6%
EBITDA

$10.1M

No prior period
Adjusted EBITDA

$8.07M

No prior period
Capital Expenditures

-$9.96M

Previous: -$9.52M-4.6%
Free Cash Flow

-$6.39M

Previous: -$1.98M-223.2%
Net Income

$3.57M

Previous: $7.55M-52.7%
Operating Income

$3.66M

Previous: $11.7M-68.6%
Gross Profit

$6.62M

Previous: $16.3M-59.4%
Cash & Equivalents

$80.4M

Previous: $606K+13168.5%
Total Assets

$472M

Previous: $408M+15.7%
Stock-Based Comp

$489K

Previous: -$330K+248.2%

Revenue & EPS history

Alico · Revenue · Quarterly

$50.5M

Q2 2020+4.1%vs Q2 2019
Beat estimate in 0 of 1 quarters(0%)
ActualEstimate

Revenue by segment

Alico · $50.5M total across 2 segments · Q2 2020

  • Alico Citrus
    $49.8M
  • Land Management and Other Operations
    $714K

Forward guidance

Alico anticipates lower profits and rates of return in fiscal year 2020 due to decreased market prices for citrus fruit, but is encouraged by increased retail demand for NFC orange juice and potential improvements in market pricing next season.

Tailwinds

  • The coronavirus has had an impact on all of us personally, but so far there has been no disruption to our business.
  • Alico is fortunate to have individual grove managers who have been managing our operations for between 15 and 45 years enabling us to navigate through these challenging times seamlessly.
  • Alico did not seek any federal relief under the CARES Act.
  • We are encouraged by the recent increase in demand among retail consumers for NFC orange juice, which, when combined with the impact of lower levels of imported juice, potentially will improve market pricing next season as processor inventory supplies decrease.
  • The Alico Board remains confident about our business model and prospects in the citrus industry and is committed to continue uninterrupted quarterly dividend payments as we have done for the past five decades.

Headwinds

  • As expected in fiscal year 2020, Alico will realize lower profits and lower rates of return this year as a result of lower market prices for citrus fruit.
  • Alico decided to draw down on our lines of credit and strengthen our liquidity during these uncertain times by placing enough cash on our balance sheet to meet operating expenses for more than a full year.
  • Because we cannot predict the impact of COVID-19 going forward
  • The Company’s working capital, excluding the $66.7 million drawn on its lines of credit which is in cash, was approximately $25.8 million at March 31, 2020, representing a 2.09 to 1.00 ratio.
  • At March 31, 2020, the Company had term debt, including lines of credit, net of cash and cash equivalents and restricted cash, of $136.3 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-0.7%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+16.5%

Q4 2014

Best reaction

-9.5%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.0%-0.6%+1.3%
Q1 2026-0.5%-0.3%-2.0%
Q4 2025+4.6%+9.7%+13.5%
Q2 2025+4.0%+4.4%+6.1%
Q1 2025+0.8%-1.4%-3.8%
Q4 2024+0.0%+3.7%-3.2%
Q3 2024+0.2%-4.8%+0.5%
Q2 2024+2.8%+2.9%-4.1%
Q1 2024+0.5%+5.4%-5.6%
Q4 2023+3.0%+3.3%+0.6%
Q3 2023-4.3%-4.0%-9.2%
Q2 2023-0.0%-0.8%+4.7%
Q1 2023-2.3%-3.1%-6.5%
Q4 2022-9.5%-14.0%-10.1%
Q3 2022-8.8%-9.4%-5.7%
Q2 2022+1.2%+4.0%+7.4%
Q1 2022-5.8%-6.6%-4.9%
Q4 2021-1.7%-0.1%+4.1%
Q3 2021+0.4%+0.2%-0.6%
Q2 2021+0.7%+3.0%+6.6%
Q1 2021+0.8%-0.6%-1.8%
Q4 2020+1.1%+0.3%-0.0%
Q3 2020-0.6%-1.8%-7.2%
Q2 2020-1.9%-4.8%+7.9%
Q1 2020+1.2%-1.0%-11.1%
Q4 2019+0.6%+8.9%+9.4%
Q3 2019+0.4%+2.7%+2.7%
Q2 2019-0.8%-0.8%+1.8%
Q1 2019+0.8%+1.3%-0.5%
Q4 2018-0.2%+0.5%-5.3%
Q3 2018+2.9%+3.5%+3.7%
Q2 2018-2.0%-1.4%-5.6%
Q1 2018+3.5%-0.6%+4.6%
Q4 2017-0.3%-2.0%-13.9%
Q3 2017+0.3%+1.6%+8.0%
Q2 2017+0.7%+7.1%+0.7%
Q1 2017-1.3%-5.9%-8.6%
Q4 2016-3.8%+1.3%-0.5%
Q3 2016-0.1%-0.1%-2.1%
Q2 2016-5.1%
Q1 2016-5.0%
Q4 2015-0.3%
Q3 2015-0.2%
Q2 2015-1.7%
Q1 2015-1.7%
Q4 2014+16.5%
Q3 2014+3.0%
Q2 2014+1.2%
Q1 2014+0.3%
Q4 2013-0.8%
Q3 2013-6.3%
Q2 2013+2.8%
Q1 2013-4.5%
Q4 2012+4.2%
Q3 2012-1.6%
Q2 2012+3.3%
Q1 2011-3.0%
Q1 2012-3.0%
Q2 2011-0.6%
Q4 2011-0.6%
Q4 2009-0.6%
Q3 2010-0.4%
Q4 2010-0.4%
Q3 2011-0.4%
Q2 2010+8.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro