ALICO, INC. Q1 FY2025 earnings call

• Announced strategic transformation in early January 2025, winding down capital-intensive citrus production after current crop harvest in H1 2025 except a few grows.
• Believes 75% of acres can remain agricultural, 25% transition to non-agricultural. Will maintain agricultural commitment through diversified non-citrus ops and entitle land for commercial/residential.
• Expect to generate ~$20M from land sales in fiscal 2025, proceeds to fund ops through 2027.
• Evaluating inquiries from developers for citrus acres post-harvest and selling rolling stock/fixed assets.
• Discussing lease arrangements with ag operators for sod production, sand mining, seasonal crops.
• Submitted applications for 5 properties (total 10,484 acres) under Florida's Rural and Family Lands Protection Program.

For the first fiscal quarter ended December 31, 2024, citrus revenue was $16.3 million compared to $13.6 million in the prior year period. The $2.7 million increase in citrus revenue was primarily due to an increase in the price per pound solid, partially offset by a decrease in pound solids produced. Approximately 4 million pound solids were harvested at a $3.69 average price per pound solid compared to 4.7 million pound solids at a $2.66 average price per pound solids in the prior year period. Land management and other operations revenue increased 45% to $0.6 million compared to $0.4 million in the prior year period, primarily due to an increase in rock and sand royalty income and sod sales, partially offset by lower farm, grazing and hunting lease revenues.

• Harvest volumes in 2025 likely lower than 2024 due to citrus greening and Hurricane Milton.
• Expect ~$20M in land sales in fiscal 2025 from transactions under option or negotiated.
• Entitlement work in Collier and Highlands counties proceeding on schedule.
• Expect to end fiscal 2025 with cash to meet operating expenses for fiscal years 2026 and 2027.

• Environmental factors like citrus greening and hurricanes impacting citrus production.
• Uncertainty in land entitlement and sales processes.
• Dependence on success of non-citrus agricultural operations and land monetization.