Check listings for farmers markets in Southwest Florida for a variety of fruit and vegetables as well as other goods.(Photo: File)CONNECT>TWEET>LINKEDINCOMMENTEMAILMORE
A decline in citrus production put the squeeze on Alico Inc.'s annual profits in 2016.
The Fort Myers-based land manager and grower reported earnings of about $7 million, or 84 cents a share, for the year ending Sept. 30. That was down more than 47 percent from nearly $13.2 million, or $1.64 a share, a year ago.
Excluding one-time costs mostly related to acquisitions, the company would have earned 94 cents a share in fiscal 2016.
The company lost $3.4 million in the fourth quarter. Although down from losses of more than $5.4 million a year ago, the improvement wasn't enough to make up for the many challenges the grower faced in fiscal 2016.
Revenue for the year fell to about $144.2 million, down from more than $153 million in 2015.
Citrus production in the company's Orange Co. division declined 17.4 percent over the year, on a pound solids basis. One pound of solids equates roughly to a gallon of orange juice.
The U.S. Department of Agriculture estimated that Florida's orange crop shrank by about 15.8 percent last season based on the boxes produced. Orange Co. saw a nearly 12 percent drop year-over-year in the number of boxes it produced.
Production declines in fiscal 2016 were blamed on various factors including unusual weather, higher than normal temperatures during the early and mid-season harvest, and citrus greening, a deadly tree disease that led to more fruit drop and unharvested fruit.
Alico accelerated its late season harvest in an effort to deal with premature fruit drop, helping the company avoid wider fruit losses last year.
Fruit quality also was a bigger problem in 2016.
The company reported operating losses of about $700,000 in its Conservation and Environmental Resources division last year. Earnings before interest, taxes, depreciation and amortization for the cattle and ranch operations fell from $4 million in 2015 to $2.1 million in 2016, primarily due to lower cattle prices.
Operating costs also rose in connection with a water storage project, which is not yet under construction.
In 2016, Alico started a restructuring by investing in information technology and management talent, which also upped its general and administrative costs.
In a news release, the company said its board of directors and management "recognize that the three strategic acquisitions in fiscal years 2015 and 2014 have yet to be fully integrated" and that the next phase of integration, which will include cost-savings programs, will improve profitability and efficiency.
On Friday, Alico also announced management changes as part of its efforts to optimize financial returns. The changes are:
» Remy W. Trafelet will become president and CEO on Jan. 1. He has led the company's executive committee as chairman since 2013.
» George Brokaw will serve as executive vice chairman, while Hank Slack will be executive chairman.
» Clay Wilson will step down as CEO on Dec. 31. He will continue to serve on the company's board of directors.
» Jerry Newlin, vice president for citrus operations, will oversee the operational management of Orange Co. He previously supervised citrus operations for Orange Co. before Alico's acquisition of the company.
» John Kiernan, chief financial officer, will assume administrative duties for Orange Co. until a new general manager for the division is recruited.
» David Genho has been appointed president and general manager of the Conservation and Environmental Resources division. He previously served as operations manager at Deseret Cattle & Citrus in St. Cloud, Fla.>
Check listings for farmers markets in Southwest Florida for a variety of fruit and vegetables as well as other goods. (Photo: File)
Following the earnings announcement, shares closed at $25.85 on Friday, down $1.45 or 5.31 percent.
Source : http://www.naplesnews.com/story/news/local/2016/12/02/alico-inc-sees-drop-its-fourth-quarter-annual-profits/94798840/Terima Kasih for visit my website