Exhibit 99.1
For immediate release:
Alico, Inc. Announces
Third
Quarter and Nine Month Financial Results for Fiscal Year 2017 Highlighted by $9.6 Million
of Net Income, $34.7 Million of EBITDA, and $28.9 Million of Net Cash Provided by Operating Activities for the Nine Months of Fiscal Year 2017.
Fort Myers, FL,
August 7, 2017
- Alico, Inc. (“Alico” or the “Company”) (NASDAQ:ALCO), today announces financial results for the
third
quarter and
nine
months ended
June 30, 2017
. For the
nine
month period, the Company earned
$1.15
per share compared to
$1.25
per share in the prior year. When both periods are adjusted for certain items including merger and acquisition transaction costs, litigation costs, consulting fees, real estate gains and stock compensation expense, the Company earned
$1.10
per share in the
nine
month period of fiscal year 2017 and
$1.32
per share in the
nine
months of fiscal year 2016.
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net income
|
$
|
5,472
|
|
|
$
|
4,670
|
|
|
$
|
802
|
|
|
17.2
|
%
|
|
$
|
9,613
|
|
|
$
|
10,375
|
|
|
$
|
(762
|
)
|
|
(7.3
|
)%
|
|
EBITDA
|
$
|
15,100
|
|
|
$
|
14,587
|
|
|
$
|
513
|
|
|
3.5
|
%
|
|
$
|
34,743
|
|
|
$
|
37,359
|
|
|
$
|
(2,616
|
)
|
|
(7.0
|
)%
|
|
Earnings per diluted common share
|
$
|
0.66
|
|
|
$
|
0.56
|
|
|
$
|
0.10
|
|
|
17.9
|
%
|
|
$
|
1.15
|
|
|
$
|
1.25
|
|
|
$
|
(0.10
|
)
|
|
(8.0
|
)%
|
|
Net cash provided by operating activities
|
$
|
31,649
|
|
|
$
|
22,047
|
|
|
$
|
9,602
|
|
|
43.6
|
%
|
|
$
|
28,900
|
|
|
$
|
34,185
|
|
|
$
|
(5,285
|
)
|
|
(15.5
|
)%
|
Alico Citrus
Division Results
Alico Citrus
completed its 2016-17 harvest season during the quarter ended June 30, 2017. Early and Mid-Season box and pound solids production for the nine months were down
11.5%
and
11.0%
, respectively, compared to the 2015-16 harvest. Valencia box and pound solids production for the nine months were down
22.2%
and
21.1%
, respectively, compared to the 2015-16 harvest. The decrease in production was partially offset by increases in prices and pound solids per box. Early and Mid-Season prices increased by
18.0%
to
$2.56
per pound solid compared to
$2.17
last year. Similarly, Valencia prices increased by
13.3%
to
$2.72
per pound solid compared to
$2.40
last year. Early and Mid-Season pound solids per box increased to
5.58
compared to
5.55
last year while Valencia pound solids per box increased to
6.10
compared to
6.01
last year.
The USDA, in its July 12, 2017 Citrus Crop Forecast for the 2016-17 harvest season, indicated that the Florida orange crop finished at approximately 68,700,000 boxes which was down from approximately 81,700,000 boxes for the 2015-16 crop year, a decrease of approximately 15.9%. The Company’s 2016-17 production of all varieties totaled approximately 7,587,000 boxes representing a decrease of approximately
17.8%
from the 2015-16 crop year.
1
Citrus production for the
third
quarter and
nine
months ended
June 30, 2017
and
2016
is summarized in the following table.
Alico Citrus
continues to focus on efficiency and cost control. Our cost of sales for the nine months ended June 30, 2017 have decreased by approximately $2,700,000 compared to the nine months ended
June 30, 2016
despite the challenges of unusual weather and disease; however, the cost of production per pound solid increased
15.6%
to
$1.41
for the nine months ended June 30, 2017 as compared to
$1.22
in the same period last year because of lower volumes supporting the cost base.
Conservation and Environmental Resources
Division Results
Conservation and Environmental Resources
(“CER”) revenues for the
nine
months ended
June 30, 2017
totaled
$1.8 million
compared to
$2.5 million
in the
nine
months ended
June 30, 2016
. The decrease relates primarily to the timing of calf sales. CER held an additional
1,000
calves in inventory at September 30, 2015 which would have historically been sold prior to year-end but were instead sold in the first quarter of fiscal year 2016.
CER operating expenses decreased by
$0.8 million
for the
nine
months ended
June 30, 2017
compared to the
nine
months ended
June 30, 2016
due to the decrease in pounds sold and a
$0.6 million
decrease in water conservation related expenses.
Other Corporate Financial Information
Alico continues to invest in information technology, management talent and strategic acquisition activities while simultaneously controlling recurring general and administrative costs. Corporate G&A expenses for the
nine
months ended
June 30, 2017
totaled
$10.9 million
compared to
$9.5 million
for the
nine
months ended
June 30, 2016
, an increase of
$1.4 million
. General and administrative costs adjusted for consulting agreements, litigation expenses, stock compensation expense and transaction costs increased by approximately $1.7 million in the first
nine
months of fiscal 2017 compared to the first
nine
months of fiscal year 2016. The increase was primarily attributable to executive compensation-related expenses.
Other expense, net was
$5.1 million
and
$7.2 million
for the
nine
months ended
June 30, 2017
and
2016
, respectively. The decrease of $2.1 million is primarily attributable to a
$1.4 million
increase in gains on real estate sales and a
$0.5 million
decrease in interest expense.
2
The Company paid a third quarter cash dividend of $0.06 per share on its outstanding common stock on July 15, 2017 to shareholders of record at
June 30, 2017
.
The Company ended the quarter with term debt, net of cash and cash equivalents, of
$179.2 million
.
Effective June 30, 2017 the Company appointed Mr. Richard Rallo the Chief Accounting Officer. Mr. Rallo will be responsible for all corporate treasury and accounting functions for Alico, Inc. and its subsidiaries.
About Alico
Alico is a holding company with assets and related operations in agriculture and environmental resources, including cattle ranching, water management, and mining. Our mission is to create value for shareholders by managing existing assets to their optimal current income and total returns, opportunistically acquiring new assets and producing high quality agricultural products while exercising responsible environmental stewardship. Learn more about Alico (NASDAQ: ALCO) at
www.alicoinc.com
.
Forward-Looking Statements
This 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. These forward-looking statements are based on Alico’s current expectations about future events and can be identified by terms such as "plans," "expect," "may," "anticipate," "intend," "should be," "will be," "is likely to," "believes," and similar expressions referring to future periods.
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. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulation and rules; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and its by-products, increased pressure from diseases including citrus greening and citrus canker, as well as insects and other pests; disruption of water supplies or changes in water allocations; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest rates; availability of financing for land development activities and other growth opportunities; onetime events; acquisitions and divestitures, including our ability to achieve the anticipated results of the Orange-Co acquisition and Silver Nip merger; seasonality; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in agricultural land values; and market and pricing risks due to concentrated ownership of stock. Other risks and uncertainties include those that are described in Alico’s SEC filings, which are available on the SEC’s website at http://www.sec.gov. Alico undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
Investor Contact:
John E. Kiernan
Senior Vice President and Chief Financial Officer
(239) 226-2000
JKiernan@alicoinc.com
3
|
ALICO, INC.
|
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|||||||||||||||
|
(in thousands, except per share amounts)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
|
Alico Citrus
|
$
|
49,993
|
|
|
$
|
45,639
|
|
|
$
|
122,537
|
|
|
$
|
135,916
|
|
|
Conservation and Environmental Resources
|
1,001
|
|
|
877
|
|
|
1,789
|
|
|
2,528
|
|
||||
|
Other Operations
|
524
|
|
|
337
|
|
|
837
|
|
|
902
|
|
||||
|
Total operating revenues
|
51,518
|
|
|
46,853
|
|
|
125,163
|
|
|
139,346
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||
|
Alico Citrus
|
35,059
|
|
|
31,706
|
|
|
90,067
|
|
|
101,030
|
|
||||
|
Conservation and Environmental Resources
|
1,451
|
|
|
1,399
|
|
|
2,726
|
|
|
3,540
|
|
||||
|
Other Operations
|
—
|
|
|
65
|
|
|
93
|
|
|
212
|
|
||||
|
Total operating expenses
|
36,510
|
|
|
33,170
|
|
|
92,886
|
|
|
104,782
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit
|
15,008
|
|
|
13,683
|
|
|
32,277
|
|
|
34,564
|
|
||||
|
General and administrative expenses
|
3,709
|
|
|
2,747
|
|
|
10,896
|
|
|
9,521
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Income from operations
|
11,299
|
|
|
10,936
|
|
|
21,381
|
|
|
25,043
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest expense
|
(2,223
|
)
|
|
(2,470
|
)
|
|
(6,924
|
)
|
|
(7,448
|
)
|
||||
|
Gain (loss) on sale of real estate
|
157
|
|
|
(284
|
)
|
|
1,989
|
|
|
618
|
|
||||
|
Other expense, net
|
(96
|
)
|
|
(120
|
)
|
|
(120
|
)
|
|
(419
|
)
|
||||
|
Total other expense, net
|
(2,162
|
)
|
|
(2,874
|
)
|
|
(5,055
|
)
|
|
(7,249
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Income before income taxes
|
9,137
|
|
|
8,062
|
|
|
16,326
|
|
|
17,794
|
|
||||
|
Provision for income taxes
|
3,665
|
|
|
3,392
|
|
|
6,713
|
|
|
7,419
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income
|
5,472
|
|
|
4,670
|
|
|
9,613
|
|
|
10,375
|
|
||||
|
Net loss (income) attributable to noncontrolling interests
|
7
|
|
|
11
|
|
|
(36
|
)
|
|
29
|
|
||||
|
Net income attributable to Alico, Inc. common stockholders
|
$
|
5,479
|
|
|
$
|
4,681
|
|
|
$
|
9,577
|
|
|
$
|
10,404
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Per share information attributable to Alico, Inc. common stockholders:
|
|
|
|
|
|
|
|
||||||||
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic
|
$
|
0.66
|
|
|
$
|
0.56
|
|
|
$
|
1.15
|
|
|
$
|
1.25
|
|
|
Diluted
|
$
|
0.66
|
|
|
$
|
0.56
|
|
|
$
|
1.15
|
|
|
$
|
1.25
|
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic
|
8,293
|
|
|
8,309
|
|
|
8,315
|
|
|
8,299
|
|
||||
|
Diluted
|
8,364
|
|
|
8,309
|
|
|
8,340
|
|
|
8,309
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Cash dividends declared per common share
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.18
|
|
|
$
|
0.18
|
|
4
|
ALICO, INC.
|
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||
|
(in thousands, except share amounts)
|
|||||||
|
|
|
|
|
||||
|
|
June 30,
|
|
September 30,
|
||||
|
|
2017
|
|
2016
|
||||
|
|
(unaudited)
|
|
|
||||
|
ASSETS
|
|
|
|
||||
|
Current assets:
|
|
|
|
||||
|
Cash and cash equivalents
|
$
|
9,944
|
|
|
$
|
6,625
|
|
|
Accounts receivable, net
|
11,844
|
|
|
4,740
|
|
||
|
Inventories
|
39,497
|
|
|
58,469
|
|
||
|
Income tax receivable
|
275
|
|
|
1,013
|
|
||
|
Assets held for sale
|
3,223
|
|
|
—
|
|
||
|
Prepaid expenses and other current assets
|
2,419
|
|
|
1,024
|
|
||
|
Total current assets
|
67,202
|
|
|
71,871
|
|
||
|
|
|
|
|
||||
|
Property and equipment, net
|
376,010
|
|
|
379,247
|
|
||
|
Goodwill
|
2,246
|
|
|
2,246
|
|
||
|
Deferred financing costs, net of accumulated amortization
|
325
|
|
|
389
|
|
||
|
Other non-current assets
|
1,438
|
|
|
1,692
|
|
||
|
Total assets
|
$
|
447,221
|
|
|
$
|
455,445
|
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
|
Current liabilities:
|
|
|
|
||||
|
Accounts payable
|
$
|
1,502
|
|
|
$
|
5,975
|
|
|
Accrued liabilities
|
4,564
|
|
|
6,920
|
|
||
|
Long-term debt, current portion
|
4,525
|
|
|
4,493
|
|
||
|
Income taxes payable
|
1,539
|
|
|
—
|
|
||
|
Obligations under capital leases, current portion
|
8
|
|
|
288
|
|
||
|
Other current liabilities
|
947
|
|
|
1,002
|
|
||
|
Total current liabilities
|
13,085
|
|
|
18,678
|
|
||
|
|
|
|
|
||||
|
Long-term debt:
|
|
|
|
||||
|
Principal amount
|
184,633
|
|
|
192,726
|
|
||
|
Less: deferred financing costs, net
|
(1,819
|
)
|
|
(1,980
|
)
|
||
|
Long-term debt less deferred financing costs, net
|
182,814
|
|
|
190,746
|
|
||
|
Lines of credit
|
—
|
|
|
5,000
|
|
||
|
Deferred tax liability
|
35,493
|
|
|
31,056
|
|
||
|
Deferred gain on sale
|
26,203
|
|
|
27,204
|
|
||
|
Deferred retirement obligations
|
4,179
|
|
|
4,198
|
|
||
|
Obligations under capital leases
|
9
|
|
|
300
|
|
||
|
Total liabilities
|
261,783
|
|
|
277,182
|
|
||
|
|
|
|
|
||||
|
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 8,261,308 and 8,315,535 shares outstanding at June 30, 2017 and September 30, 2016, respectively
|
8,416
|
|
|
8,416
|
|
||
|
Additional paid in capital
|
18,489
|
|
|
18,155
|
|
||
|
Treasury stock, at cost, 154,837 and 100,610 shares held at June 30, 2017 and September 30, 2016, respectively
|
(5,863
|
)
|
|
(4,585
|
)
|
||
|
Retained earnings
|
159,587
|
|
|
151,504
|
|
||
|
Total Alico stockholders' equity
|
180,629
|
|
|
173,490
|
|
||
|
Noncontrolling interest
|
4,809
|
|
|
4,773
|
|
||
|
Total stockholders' equity
|
185,438
|
|
|
178,263
|
|
||
|
Total liabilities and stockholders' equity
|
$
|
447,221
|
|
|
$
|
455,445
|
|
5
|
ALICO, INC.
|
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|||||||
|
(in thousands)
|
|||||||
|
|
|
|
|
||||
|
|
Nine Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
|
|
|
||||
|
Cash flows from operating activities:
|
|
|
|
||||
|
Net income
|
$
|
9,613
|
|
|
$
|
10,375
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
|
Gain on sale of sugarcane land
|
(422
|
)
|
|
(618
|
)
|
||
|
Depreciation, depletion and amortization
|
11,529
|
|
|
12,088
|
|
||
|
Deferred income taxes
|
4,437
|
|
|
7,288
|
|
||
|
(Gain) loss on sale of property and equipment
|
(1,338
|
)
|
|
626
|
|
||
|
Non-cash interest expense on deferred gain on sugarcane land
|
1,060
|
|
|
1,051
|
|
||
|
Stock-based compensation expense
|
1,230
|
|
|
635
|
|
||
|
Other
|
145
|
|
|
473
|
|
||
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
|
Accounts receivable
|
(7,104
|
)
|
|
(10,932
|
)
|
||
|
Inventories
|
17,350
|
|
|
14,147
|
|
||
|
Income tax receivable
|
738
|
|
|
861
|
|
||
|
Prepaid expenses and other assets
|
(1,359
|
)
|
|
(1,193
|
)
|
||
|
Accounts payable and accrued expenses
|
(6,826
|
)
|
|
(196
|
)
|
||
|
Income tax payable
|
1,539
|
|
|
—
|
|
||
|
Other liabilities
|
(1,692
|
)
|
|
(420
|
)
|
||
|
Net cash provided by operating activities
|
28,900
|
|
|
34,185
|
|
||
|
|
|
|
|
||||
|
Cash flows from investing activities:
|
|
|
|
|
|
||
|
Purchases of property and equipment
|
(11,450
|
)
|
|
(9,115
|
)
|
||
|
Proceeds from sale of property and equipment
|
3,016
|
|
|
—
|
|
||
|
Other
|
155
|
|
|
164
|
|
||
|
Net cash used in investing activities
|
(8,279
|
)
|
|
(8,951
|
)
|
||
|
|
|
|
|
||||
|
Cash flows from financing activities:
|
|
|
|
|
|
||
|
Proceeds from term loans
|
—
|
|
|
2,500
|
|
||
|
Principal payments on revolving lines of credit
|
(70,770
|
)
|
|
(53,882
|
)
|
||
|
Borrowings on revolving lines of credit
|
65,770
|
|
|
53,882
|
|
||
|
Principal payments on term loans
|
(8,061
|
)
|
|
(8,080
|
)
|
||
|
Contingent consideration paid
|
—
|
|
|
(7,500
|
)
|
||
|
Treasury stock purchases
|
(2,174
|
)
|
|
(3,141
|
)
|
||
|
Dividends paid
|
(1,496
|
)
|
|
(1,497
|
)
|
||
|
Capital lease obligation payments
|
(571
|
)
|
|
—
|
|
||
|
Net cash used in financing activities
|
(17,302
|
)
|
|
(17,718
|
)
|
||
|
|
|
|
|
||||
|
Net decrease in cash and cash equivalents
|
3,319
|
|
|
7,516
|
|
||
|
Cash and cash equivalents at beginning of the period
|
6,625
|
|
|
5,474
|
|
||
|
|
|
|
|
||||
|
Cash and cash equivalents at end of the period
|
$
|
9,944
|
|
|
$
|
12,990
|
|
6
|
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income attributable to common stockholders
|
$
|
5,479
|
|
|
$
|
4,681
|
|
|
$
|
9,577
|
|
|
$
|
10,404
|
|
|
Interest expense
|
2,223
|
|
|
2,470
|
|
|
6,924
|
|
|
7,448
|
|
||||
|
Provision for income taxes
|
3,665
|
|
|
3,392
|
|
|
6,713
|
|
|
7,419
|
|
||||
|
Depreciation and amortization
|
3,733
|
|
|
4,044
|
|
|
11,529
|
|
|
12,088
|
|
||||
|
EBITDA
|
15,100
|
|
|
14,587
|
|
|
34,743
|
|
|
37,359
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Consulting agreement expenses
|
187
|
|
|
109
|
|
|
475
|
|
|
555
|
|
||||
|
(Gain) loss on sales of real estate
|
(157
|
)
|
|
284
|
|
|
(1,989
|
)
|
|
(618
|
)
|
||||
|
Litigation expenses related to shareholder lawsuit
|
—
|
|
|
7
|
|
|
—
|
|
|
410
|
|
||||
|
Employee stock compensation expense
|
231
|
|
|
38
|
|
|
648
|
|
|
113
|
|
||||
|
Transaction costs
|
(5
|
)
|
|
48
|
|
|
196
|
|
|
550
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDA
|
$
|
15,356
|
|
|
$
|
15,073
|
|
|
$
|
34,073
|
|
|
$
|
38,369
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Earnings Per Diluted Common Share
|
|
|
|
|
|
|
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income attributable to common stockholders
|
$
|
5,479
|
|
|
$
|
4,681
|
|
|
$
|
9,577
|
|
|
$
|
10,404
|
|
|
Consulting agreement expenses
|
187
|
|
|
109
|
|
|
475
|
|
|
555
|
|
||||
|
Gain (loss) on sales of real estate
|
(157
|
)
|
|
284
|
|
|
(1,989
|
)
|
|
(618
|
)
|
||||
|
Litigation expenses related to shareholder lawsuit
|
—
|
|
|
7
|
|
|
—
|
|
|
410
|
|
||||
|
Employee stock compensation expense
|
231
|
|
|
38
|
|
|
648
|
|
|
113
|
|
||||
|
Transaction costs
|
(5
|
)
|
|
48
|
|
|
196
|
|
|
550
|
|
||||
|
Tax impact
|
(118
|
)
|
|
(204
|
)
|
|
275
|
|
|
(421
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted net income
|
$
|
5,617
|
|
|
$
|
4,963
|
|
|
$
|
9,182
|
|
|
$
|
10,993
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted common shares
|
8,364
|
|
|
8,309
|
|
|
8,340
|
|
|
8,309
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Earnings per Diluted Common Share
|
$
|
0.67
|
|
|
$
|
0.60
|
|
|
$
|
1.10
|
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
7
|
Adjusted Free Cash Flow
|
|
|
|
|
|
|
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
Net cash provided by operating activities
|
$
|
31,649
|
|
|
$
|
22,047
|
|
|
$
|
28,900
|
|
|
$
|
34,185
|
|
|
Adjustments for non-recurring items:
|
|
|
|
|
|
|
|
||||||||
|
Consulting agreement expenses
|
187
|
|
|
109
|
|
|
475
|
|
|
555
|
|
||||
|
Litigation expenses related to shareholder lawsuit
|
—
|
|
|
7
|
|
|
—
|
|
|
410
|
|
||||
|
Transaction costs
|
(5
|
)
|
|
48
|
|
|
196
|
|
|
550
|
|
||||
|
Tax impact
|
(69
|
)
|
|
(73
|
)
|
|
(276
|
)
|
|
(632
|
)
|
||||
|
Capital expenditures
|
(6,477
|
)
|
|
(3,184
|
)
|
|
(11,517
|
)
|
|
(9,115
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Free Cash Flow
|
$
|
25,285
|
|
|
$
|
18,954
|
|
|
$
|
17,778
|
|
|
$
|
25,953
|
|
Alico utilizes the non-GAAP measures Adjusted EBITDA, Adjusted Earnings per Diluted Common Share and Adjusted Free Cash Flow among other measures, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that Adjusted EBITDA, Adjusted Earnings per Diluted Common Share, and Adjusted Free Cash Flow are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provides useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and helps investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. Adjusted EBITDA is defined as earnings before interest expense, provision for income taxes, depreciation and amortization adjusted for consulting agreement expenses, gain (loss) on sales of real estate, litigation expenses related to shareholder lawsuit, employee stock compensation expenses and transaction costs. Adjusted Earnings per Diluted Common Share is defined as net income attributable to common stockholders adjusted for consulting agreement expenses, gain on sales of real estate, litigation expenses related to shareholder lawsuit, employee stock compensation expenses and transaction costs, all adjusted for estimated taxes, divided by diluted common shares. Adjusted Free Cash Flow is defined as cash provided by operating activities adjusted for consulting agreement expenses, litigation expenses related to shareholder lawsuit and transaction costs, all adjusted for estimated taxes, less capital expenditures. The Company uses Adjusted Free Cash Flow to evaluate its business and this measure is considered an important indicator of the Company's liquidity, including its ability to reduce net debt, make strategic investments and pay dividends to common stockholders. The Company’s definition of Adjusted Free Cash Flow does not represent residual cash flows available for discretionary spending.
8
