 FORT MYERS, Fla., Aug. 06, 2020 GLOBE NEWSWIRE -- Alico, Inc. Alico or the Company Nasdaq: ALCO today announces financial results for the third quarter of fiscal year 2020 and the nine months ended June 30, 2020, the highlights which are as follows: With the recent execution of two new Citrus supply agreements, the Company now has contracts in place that provide for prices per pound solid over the next several years which will be greater than the current years prices per pound solid. Company entered into a new long-term agreement to provide citrus grove management for approximately 7,000 acres in southwestern Florida. The coronavirus outbreak COVID-19 did not impact the Companys fiscal year 2020 harvest and has not had a material adverse impact on the Companys overall business operations. Company appoints two new Board members with Florida agriculture expertise and exceptional credentials. Company provides Net Income and EBITDA guidance for the remainder of fiscal year 2020.Results of OperationsFor the nine months ended June 30, 2020, the Company earned net income attributable to Alico common stockholders of approximately 6.5 million and earnings of 0.86 per diluted common share, compared to net income attributable to Alico common stockholders of approximately 21.3 million and earnings of 2.85 per diluted common share for the nine months ended June 30, 2019. The decrease in net income attributable to Alico common stockholders is primarily due to a decline in the market price per pound solids for citrus fruit this past 20192020 harvest season because of unfavorable industry supply dynamics and a decrease in processed box production caused by greater fruit drop in the current harvest season as compared to the 20182019 harvest season. Partially offsetting this decrease was i funds awarded through the federal disaster relief program, ii a reduction in certain general and administrative costs and iii a gain on the sale of certain parcels on the east side of the Alico Ranch.When both periods are adjusted for certain non-recurring items, the Company had adjusted net income of 0.25 per diluted common share for the nine months ended June 30, 2020, compared to adjusted net income of 3.26 per diluted common share for the nine months ended June 30, 2019. Adjusted EBITDA for the nine months ended June 30, 2020 and 2019 was 17.7 million and 48.1 million, respectively.These financial results reflect the seasonal nature of the Companys business. The majority of the Companys citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Companys profit and cash flows from operating activities are typically recognized in those quarters and our working capital requirements are typically greater in the first and fourth quarters of the fiscal year.The Company reported the following financial results:in thousands, except for per share amounts and percentages Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 Change 2020 2019 Change Net income attributable to Alico, Inc. common stockholders2,096 16,244 14,14887.1 6,458 21,324 14,86669.7 EBITDA 17,518 26,962 19,44472.1 23,932 44,472 20,54046.2 Adjusted EBITDA 17,441 26,720 19,27972.2 17,712 48,058 30,34663.1 Earnings per diluted common share0.28 2.17 1.8987.1 0.86 2.85 1.9969.8 Net cash provided by operating activities9,433 35,618 26,18573.5 21,121 41,686 20,56549.3 1 See Non-GAAP Financial Measures at the end of this earnings release for details regarding these measures.Alico Citrus Division ResultsCitrus production for the three and nine months ended June 30, 2020 and 2019 is summarized in the following table.in thousands, except per box and per pound solids data Three Months Ended Nine Months Ended June 30, Change June 30, Change 2020 2019 Unit 2020 2019 Unit Boxes Harvested: Early and Mid-Season NM 3,146 3,114 32 1.0 Valencias 1,905 3,492 1,58745.4 4,165 4,790 62513.0 Total Processed 1,905 3,492 1,58745.4 7,311 7,904 5937.5 Fresh Fruit 44 74 3040.5 247 210 37 17.6 Total 1,949 3,566 1,61745.3 7,558 8,114 5566.9 Pound Solids Produced: Early and Mid-Season NM 17,947 16,873 1,074 6.4 Valencias 11,970 22,023 10,05345.6 25,631 29,854 4,22314.1 Total 11,970 22,023 10,05345.6 43,578 46,727 3,1496.7 Average Pound Solids per Box: Early and Mid-Season NM 5.70 5.42 0.28 5.2 Valencias 6.28 6.31 0.030.5 6.15 6.23 0.081.3 Price per Pound Solids: Early and Mid-Season NM 1.74 2.35 0.6126.0 Valencias2.03 2.49 0.4618.5 1.95 2.46 0.5120.7 NM - Not meaningfulFor the nine months ended June 30, 2020, Alico Citrus harvested approximately 7.6 million boxes of fruit, a decrease of 6.9 from the same period of the prior fiscal year. The decrease was principally attributable to greater fruit drop in the current harvest season as compared to the prior harvest season. The Company saw a reduction in its average blended price per pound solid fall from 2.42 in the prior fiscal year to 1.86 in the current fiscal year, largely due to the Florida citrus crop being greater than expected in the 20182019 harvest season, leading to excess inventory levels at Florida citrus juice processors in the current harvest season. The price reduction was also impacted by the continued inflow of imported orange juice, though at lower levels than the prior year. Because of increased consumption of not-from-concentrate orange juice by retail consumers since February 2020, as indicated in the published Nielsen data, inventory levels at the Florida citrus juice processors have been decreasing. The Company expects this inventory trend will lead to improved market pricing improvement in the next harvest season.The Companys harvesting activities were not impacted by the coronavirus pandemic, and there were no disruptions in delivering fruit to the processors. Additionally, to date, the Company has not experienced any material challenges to its operations from COVID-19.In July 2020, the Company entered into a long-term agreement to provide citrus grove management services, including harvest and haul responsibilities, to another top ten Florida grower, Barron Collier Companies. The Company will manage citrus operations for approximately 7,000 acres of Barron Collier groves in Collier and Hendry Counties, in exchange for a per acre management fee after being reimbursed for all of its costs incurred. Water Resources and Other Operations Division ResultsIncome from operations for the Water Resources and Other Operations Division for the nine months ended June 30, 2020 improved by approximately 0.4 million compared to the nine months ended June 30, 2019. This was primarily due to lower expenses related to the dispersed water project, as well as a reduction in land consulting expenses.As a result of the Company granting the State of Florida an option to purchase an approximate 10,700 acre parcel on the western part of Alico Ranch the State Option, and because a sale of those acres would affect the proposed dispersed water management project, the Company has decided to suspend all permit approval activities for its dispersed water management project. The Company expects this transaction to close by the end of September 2020.Management CommentJohn Kiernan, President and Chief Executive Officer, commented, Alico is deeply saddened by the passing of our former President and Chairman of the Board, Ben Hill Griffin, III, last month. Ben Hill Griffin, III was a champion for Florida citrus and led Alico through a time of strong growth. He was a role model as a true Floridian and leaves an indelible legacy in agriculture. Alico is forever proud to have donated the land for Florida Gulf Coast University under Ben Hills leadership. We extend our sincerest condolences to Mr. Griffins family and continue to strive to live up to the ideals that generations of Griffins set for Alico.We are proud to embark on a new business initiative working with Barron Collier to manage their citrus grove operations. This multi-year partnership allows Alico to leverage its existing grove management expertise. We currently own, operate and manage more than 31,000 net citrus acres and by adding approximately 7,000 Barron Collier net citrus acres to our platform it will enable Alico to continue to improve its economies of scale. We are delighted to have been able to add the majority of the Barron Collier citrus team members to our Alico team and are impressed with their professionalism and citrus grove management expertise. We believe that our combined best practices will improve all of our groves and continue to establish our position as a citrus industry leader. Alico will continue to pursue similar citrus grove management opportunities over the next year.To continue to become more transparent to our investors, Alico is providing limited financial guidance for the remainder of fiscal year ended September 30, 2020. As anticipated and discussed last quarter, Alico will realize lower earnings this fiscal year primarily because of lower market prices for citrus fruit. However, our new citrus supply agreements, which extend until 2024, have pricing mechanisms which will protect the Company in the event of over-supply. 