Alico announces restructuring program

Thursday, 16 Nov 2017 

Nov 16 (Reuters) - Alico Inc ::Announces restructuring program which has been transforming it into a more competitive company.Alico has eliminated costs "that it believes will not negatively affect citrus production"​.Alico Citrus estimates that production will be down 40-45 percent from prior season that was completed in June of 2017​.When Alico 2.0 is fully implemented over next 2 yrs, Alico Citrus expects to generate net income of $17.9 million, earnings per share of $2.00-$2.40.Alico Citrus lost a small percentage of trees, force and duration of storm impacted majority of groves​.Alico Citrus expect it will take at least two seasons for groves to recover to pre-hurricane production levels​.Alico Citrus sees production of 4-4.4mm boxes in 2018, production increase in 2019, return to pre-hurricane production levels by FY2020​.Believes restructuring efforts and cost efficiencies that were began in early 2017 will mitigate financial impact to Alico of Hurricane Irma​.Believes that Alico 2.0 restructuring, cost efficiencies that began in early 2017 will mitigate financial impact to Alico of Hurricane Irma​.Company expects to be EBITDA breakeven in FY2018​.A comprehensive review of Alico's assets identified approximately $175mm of properties that generate no or low returns​.Alico Citrus is reducing total expenses per acre from $3,314/acre in FY16 to $2,164/acre when Alico 2.0 is fully implemented​. 

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18 Jul 2018