ALICO, INC. 10-Q Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026 (Fiscal Year 2026 Q2). ALICO, Inc. is a Florida-based agribusiness and land management company currently executing a Strategic Transformation announced in January 2025. The strategy involves winding down its Alico Citrus division due to financial challenges and citrus greening disease, shifting focus toward diversified land usage, real estate development (specifically the Corkscrew Grove Villages project), and leasing operations.
Key Financial Metrics
| Metric | Three Months Ended Mar 31, 2026 | Six Months Ended Mar 31, 2026 |
|---|---|---|
| Total Operating Revenues | $5.34 million | $7.23 million |
| Net Income (Attributable to Common Stockholders) | $11.38 million | $7.90 million |
| Net Income Per Share (Diluted) | $1.49 | $1.03 |
| Cash and Cash Equivalents | $52.88 million | $52.88 million (Balance Sheet) |
| Working Capital | $52.17 million | $52.17 million |
| Total Debt (Long-term + Current) | $82.96 million | $82.96 million |
| Available Revolving Credit (RLOC) | $92.50 million | $92.50 million |
Note: Net income for the period was significantly driven by non-operating gains from land sales rather than core operating profitability, as the company continues to wind down citrus operations.
Material Changes vs. Prior Period
- Revenue Decline: Total operating revenues decreased 70.3% for the quarter and 79.3% for the six-month period compared to the prior year. This is primarily due to the wind-down of the Alico Citrus division.
- Alico Citrus Revenue: Dropped from $17.25 million to $3.79 million (quarter) and $33.58 million to $4.67 million (six months).
- Land Management Revenue: Increased 113.1% (quarter) and 97.1% (six months) due to increased leasing and sod sales.
- Profitability Shift: The company reported a net income of $11.38 million for the quarter, a stark contrast to the $111.39 million net loss in the same period last year. The prior year loss was driven by massive impairment charges ($24.97 million) and accelerated depreciation ($119.27 million) related to the citrus wind-down.
- Gain on Sale of Assets: A significant driver of current profitability was a $19.73 million gain on the sale of property and equipment (land) for the quarter, compared to $15.85 million in the prior year.
- Operating Expenses: Total operating expenses decreased 94.1% for the quarter and 91.0% for the six months, reflecting the cessation of costly citrus harvesting and grove maintenance activities.
- Cash Flow: Net cash used in operating activities was $4.81 million for the six months ended March 31, 2026, compared to $0.57 million used in the prior year. Investing activities provided $28.55 million, largely from land sales.
Guidance, Outlook, and Risks
- Strategic Transformation: Management expects seasonal revenue patterns to diminish as citrus operations wind down. The focus is on the development of the Corkscrew Grove Villages and land leasing.
- Recent Approval: In April 2026, the Collier County Board of County Commissioners unanimously approved the Stewardship Receiving Area (SRA) for the Corkscrew Grove East Village, allowing for up to 4,502 dwelling units and significant commercial space.
- Capital Allocation: The company continues to repurchase shares. In the quarter ended March 31, 2026, it repurchased 207,340 shares for $8.37 million. As of April 2026, total FY2026 repurchases reached $10.0 million.
- Dividends: Cash dividends of $0.05 per share were declared for the quarter.
- Liquidity and Debt: The company maintains a $95 million Revolving Line of Credit (RLOC) with $92.5 million available. It is in compliance with all financial covenants, including a Minimum Liquidity Requirement of $5.82 million and a 50% Loan-to-Value (LTV) Cap.
- Debt Structure: Includes fixed-rate term loans maturing in 2029 and 2034, and a variable-rate RLOC (SOFR + 220 bps).
- Risks:
- Valuation Allowance: Management determined it is not "more likely than not" that a portion of deferred tax assets will be realized due to a cumulative three-year loss position, impacting the effective tax rate.
- Customer Concentration: The company terminated its contract with Tropicana in May 2025. No other single customer currently represents a significant concentration of revenue.
- Development Risks: Future results depend on the successful execution of real estate development and entitlements for the Corkscrew Grove project.
Investor Verification Checklist
- Land Sale Sustainability: Verify the frequency and pricing of future land sales, as current net income is heavily reliant on these one-time gains rather than recurring operating cash flow.
- Citrus Wind-Down Progress: Confirm the timeline for the complete cessation of citrus operations and the associated reduction in operating expenses.
- Corkscrew Grove Entitlements: Monitor the progress of the Conceptual Environmental Resource Permit and 404/Dredge and Fill permit required for the Corkscrew Grove Villages development.
- Debt Covenants: Review compliance with the Minimum Liquidity Requirement and LTV Cap, especially as the company draws on its RLOC or if land valuations fluctuate.
- Tax Position: Assess the impact of the valuation allowance on deferred tax assets and the potential for future tax benefits if the company returns to sustained profitability.