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Investor Presentation incorporated NASDAQ: ALCO www.alicoinc.com January 2025
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Cautionary Note Regarding Forward- Looking Statements This presentation 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 the Company’s strategic transformation, the Company’s future cash flow and cash reserves, the future use and estimated value of the Company’s land holdings, returning capital to shareholders, the Company’s expected future profitable growth, expectations for the management of certain acres by third-party caretakers and 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 “if,” “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. 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: our ability to successfully develop and execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; water use regulations restricting our access to water; harm to our reputation; tax risks associated with a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the result of any significant corporate transactions; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting; 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 certain of 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, 2024 filed with the Securities and Exchange Commission (the “SEC”) on December 2, 2024. 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.
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Our History Alico is a Florida -based agribusiness and land management company with over 125 years of experience. Alico owns approximately 53,371 acres of land and approximately 48,700 acres of oil, gas, & mineral rights in whole or part throughout Florida. Alico currently operates two divisions: Alico Citrus, currently one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Alico seeks to provide investors with the benefits and stability of a conventional agriculture investment with the optionality that comes with active land management.
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Achieving Goals monitor finances Alico is a major landowner; its primary asset is approximately 53,371 acres of land in 31 locations across 8 counties. Alico’s Largest Asset: Our Land
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John Kiernan Chief Executive Officer President & CEO Mitch Hutchcraft Ex ecuti ve V i ce Presi dent Brad Heine Chie f Fina ncia l Office r Key Company Leadership jkiernan@alicoinc.com mhutchcraft@alicoinc.com bheine@alicoinc.com
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Strategic Transformation Announcement On January 6, 2025, Alico announced: • The wind-down of Alico Citrus division after 2024/2025 harvest • Transformation into a diversified land company • Focus on non-citrus agricultural revenue opportunities • Strategic development of select land parcels Immediate Impact • Reduction in citrus production workforce • 3,460 citrus acres to transition to third-party management • Focus now shifts to land optimization Strategic Rationale • Addressing ongoing citrus industry challenges • Reduce operational volatility • Maximize shareholder value
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Why We’re Transforming: Industry Headwinds Citrus Industry Challenges • 73% decline in production over last decade • Current harvest volume expected lower than previous season despite significant investments • Worsening impact of citrus greening disease • Significant hurricane damage (Irma 2017, Ian 2022, Milton 2024) • Rising costs of disease treatment Financial Impact • Increasing capital requirements • Rising operational costs • Declining returns on investment • Growing financial volatility Growing citrus is no longer economically viable for Alico in Florida
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Production Has Declined Source: USDA, Alico 2015-2024 10-K’s and Management’s estimates for 2025E
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Creating Shareholder Value Financial Outlook • Estimated land value: $650M - $750M • Positive cash flow expected for remainder of FY2025 • Cash reserves sufficient for 2+ years of operations • Reduced working capital requirements Development Strategy • 75% of land to remain in agriculture • 25% identified for development potential • 10% targeted for development within 5 years • Focus on highest and best use (HBU) Creating opportunities that maintain Alico’s legacy while acting prudently for shareholders
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Portfolio Value Potential Total Estimated Value: $650M - $750M Long-Term Development 14% Near-Term Development 10% Land 76% Near-Term Development Potential $335M - $380M 5,500 acres (10%) Within 5 Years Long-Term Development Potential $140M - $170M 7,100 acres (14%) Beyond 5 Years Agricultural Land Value $175M - $200M 40,771 acres (76%) Ongoing operations
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Benefits of Transformation Creating a more stable and sustainable future Strong Financial Position Met Life credit line through 2034 Drawn as of Sept 2024 $95M $8.4M Operational Benefits • Reduced working capital requirements • Lower financial volatility Shareholder Value Quarterly dividend maintained since 1974 50 Years of Consistent Returns Strategic Flexibility • Focus on profitable non-citrus agriculture • Opportunistic land sales approach • HBU optimization for all properties
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Strong Track Record of Capital Returns Dividend History Principal Payments Share Repurchase Program $189M Total Capital Returned FY2015 – Present Including $87M since FY2021 Total Payments Consistent dividend payments since 1974 $41M+ Net Payments $113M Debt reduction since FY2016 Regular Buybacks $9.9M 2018 Tender Offer $25.6M
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Why Invest in Alico ? Strategic Vision • Wind down of citrus operations strengthens financial foundation • Clear path to dramatically improve shareholder value • Stability of conventional agriculture investment, with optionality in active land management Strong Foundation • Expert management team with proven execution capability • Improved cash flow position and ample liquidity Financial Excellence • $189M capital returned since 2015; consistent quarterly dividends since 1974 • Attractive valuation vs. comparable companies Responsible Land Management • Proven track record of strategic land sales in Florida that create value for shareholders while benefitting local communities
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For More Information investorrelations@alicoinc.com www.alicoinc.com www.linkedin.com/company/alico-inc. www.facebook.com/AlicoInc Fort Myers, Florida (239) 226-2000 Scan to view our interactive map