Alico, Inc. to Attend 3rd Annual AGTech Answers Conference
November 13 2023 - 7:00AM
Alico, Inc. (“Alico” or the “Company”) (NASDAQ: ALCO) announced
today that John Kiernan, the Company’s Chief Executive Officer and
President, and Bradley Heine, the Company's Chief Financial
Officer, will attend the 3rd Annual AGTech Answers Conference, held
in New York, NY, on November 14, 2023.
COMPANY HISTORY
- Over 125 years of experience, currently managing approximately
50,000 acres of citrus groves in 31 locations across 7
counties.
- Top citrus grower in the US and primary supplier to Tropicana,
a leading orange juice brand in the US.
- Recognized within the citrus industry for exceptional
caretaking practices, one result being a new partnership with a
large citrus grower to manage another 2,500 acres of citrus groves,
with expenses reimbursed and a management fee paid per acre for its
services.
CITRUS OPERATIONS
- Alico is still recovering from the aftermath of Hurricane Ian
in 2022, which damaged half of its crops intended for the 2023
harvest season. Alico hopes to receive federal disaster relief
funds from the Consolidated Appropriations Act that was passed into
law December 2022, but cannot determine the amount of relief for
which it may be eligible. Alico continues to support Florida Citrus
Mutual, its industry trade group, and government agencies as they
work to finalize federal relief programs.
- Over 35% of Alico's trees have been treated with an
oxytetracycline or ‘OTC’ injection since January 2023 to combat
citrus greening with the goal to improve fruit quality and decrease
fruit drop rate. Full extent of its benefits will not be measurable
until after the 2024 harvest.
- Alico is confident that its crop recovery in the 2024 harvest
season will be significant because of its exceptional caretaking
practices, proactive OTC treatment, and the maturing of over 2
million trees planted by the Company since 2017.
REAL ESTATE
- On September 18, 2023, Alico signed a contract with the State
of Florida to sell its remaining 17,000 acres of the Alico Ranch
for roughly $77.6 million. The deal is anticipated to close before
February of 2024. Once closed, the pending contract will result in
a total of approximately 69,000 acres of the Alico Ranch sold for
$226 million to over 25 buyers since 2018. Plans for use of
proceeds are being finalized, with reducing balances on revolving
and working capital credit lines incurred since Hurricane Ian in
September 2022 a priority. Repayment of variable rate debt balances
without penalty is also a likely use of net proceeds from the
sale.
- Alico continues to evaluate all of its properties to explore
creative solutions to enhance and extract value. Alico seeks to
provide investors with the benefits and stability of a conventional
agriculture investment with the optionality that comes with active
land management.
- Alico recently concluded its work with land-use planning
professionals to evaluate the long-term potential value of our real
estate assets. This led to the commencement of the multi-year
entitlement process for a 4,500-acre grove near Fort Myers in
Collier County. Alico plans to continue citrus operations while
exploring the property's highest and best use.
FINANCIALS
- Consistent with our past practices, all future capital
allocation decisions will be evaluated to maximize returns to
shareholders.
- Alico has also been notified that all shareholder litigation
related to the balance sheet restatement last December has been
voluntarily dismissed without prejudice by the plaintiffs.
ABOUT ALICO Alico, Inc. primarily operates two
divisions: Alico Citrus, one of the nation’s largest citrus
producers, and Land Management and Other Operations, which includes
land leasing and related support operations. Learn more about Alico
(Nasdaq: "ALCO") at www.alicoinc.com.
FORWARD LOOKING STATEMENTSThis press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking
statements include, but are not limited to, statements regarding
business strategy, plans and objectives of management for future
operations, receipt of federal disaster relief funds, benefits of
‘OTC’ injection in Alico’s trees, our crop recovery in the 2024
harvest season, closing of the Alico ranch sale, or any other
statements relating to our future activities or other future events
or conditions. These statements are based on our current
expectations, estimates and projections about our business based,
in part, on assumptions made by our management and can be
identified by terms such as “will,” “should,” “expects,” “plans,”
,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,”
“contemplates,” “believes,” “estimates,” “forecasts,” “predicts,”
“potential” or “continue” or the negative of these terms or other
similar expressions. Alico believes the expectations reflected in
the forward-looking statements are reasonable but cannot guarantee
future results, level of activity, performance or achievements.
Actual results may differ materially from those expressed or
implied in the forward-looking statements. Therefore, Alico
cautions you against relying on any of these forward-looking
statements.These forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and assumptions
that are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in the forward-looking statements due to numerous factors,
including, but not limited to: adverse weather conditions, natural
disasters and other natural conditions, including the effects of
climate change; damage and loss to our citrus groves from disease
including but not limited to citrus greening and citrus canker;
hurricanes and tropical storms given our geographic concentration
in Florida; any adverse event affecting our citrus business; our
ability to maintain our market share in a highly competitive
business; future citrus production estimates; our dependency on our
relationship with Tropicana and Tropicana’s relationship with
certain third parties; heightened risks as a result of the sale of
a majority of ownership of Tropicana to a French private equity
firm; supply and demand pricing; development and execution of our
strategic growth initiatives; product contamination and product
liability claims; water use regulations restricting our access to
water; changes in immigration laws; risks associated with
acquisition of additional agricultural assets and other businesses;
adverse impacts from dispositions of our assets; harm to our
reputation; tax risks associated with a “Section 1031 Exchange”;
undertaking one or more significant corporate transactions;
seasonality of our citrus business; significant competition in our
agricultural operations; fluctuations in our earnings as a result
of market supply and prices and demand for our products; climate
change, or legal, regulatory or market measures to address climate
change and sustainability; increases in labor, personnel and
benefits costs; increases in commodity or raw product costs, such
as fuel and chemical costs; transportation risks; any change or the
classification or valuation methods employed by county property
appraisers related to our real estate taxes; any weakness or
instability in the real estate industry; liability for the use of
fertilizers, pesticides, herbicides and other potentially hazardous
substances; compliance with applicable environmental laws; loss of
key employees; material weaknesses and other control deficiencies,
including as a result of restatement of our financial statements as
of September 30, 2021, and the end of certain quarterly periods;
the impact of any restatements and any resulting investigations,
legal or administrative proceedings; the effect of inflation on our
operations, including as a result of the conflict in Ukraine;
increased costs as a result of being a public company; system
security risks; the COVID-19 pandemic; any harm by natural
disasters or epidemics; our indebtedness and ability to generate
sufficient cash flow to service our debt obligations; higher
interest expenses as a result of variable rates of interest for our
debt; our ability to continue to pay cash dividends; and risks
related with repurchases; and the other factors described under the
sections "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in our Annual
Report on Form 10-K for the fiscal year ended September 30, 2022
filed with the Securities and Exchange Commission (the “SEC”) on
December 13, 2022 and in our Quarterly Reports on Form 10-Q. Except
as required by law, we do not undertake an obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future developments, or otherwise.
INVESTOR RELATIONS CONTACTAny questions can be
emailed to: investorrelations@alicoinc.com
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