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property for sale in barbados
News and Information Article
LA BELLE, Fla., Jan. 17 /-FirstCall/ -- Alico, Inc.,
(Nasdaq: ALCO) one of the Souths best known agribusiness companies operating
in Central and Southwest Florida, announced net earnings for the first quarter
of fiscal year 2006 of $1.2 million, or $0.16 per share, compared with net
earnings of $1.0 million, or $0.13 per share, during the first quarter of
fiscal year 2005.
Operating revenues during the first quarter of fiscal year 2006 totaled
$6.7 million, compared with $7.6 million for the first quarter of fiscal year
2005. The decrease in operating revenues was primarily due to decreased
revenues from the sale of rock and sand products.
John R. Alexander, Chairman and Chief Executive Officer, noted, "Hurricane
Wilma, a category three hurricane, swept through southwest Florida on October
24, 2005, causing extensive damage to the Companys crops and infrastructure
in Collier and Hendry Counties. The Company recorded a casualty loss of
$5.7 million of damages to crop inventories and infrastructure from the
hurricane. However, increased income from bulk real estate sales
($4.4 million compared with $0.0 million for the three months ended November
30, 2005 and November 30, 2004, respectively) and interest and investment
income ($5.0 million for the three months ended November 30, 2005 compared
with $1.3 million for the three months ended November 30, 2004) offset the
casualty loss and loss from operations ($1.0 million loss compared with
$1.1 million income for the three months ended November 30, 2005 and 2004,
respectively)."
Addressing the divisional results, Mr. Alexander noted that:
* The Citrus Division reported operating profits of $0.6 million during
the first quarter of fiscal 2006, compared with $0.8 million for the first
quarter of fiscal year 2005. Hurricanes, citrus canker finds and increased
real estate development in the central and southern portions of Florida where
the majority of citrus is produced within the state have combined to reduce
the supply of citrus for the past two years, resulting in price increases for
citrus products across the industry. However, crop losses in the current
fiscal year due to hurricane Wilma are expected to continue to offset the
increased prices for citrus products.
* Sugarcane and sod generated a loss of $0.6 million for the three months
ended November 30, 2005 compared with earnings of $0.4 million for the three
months ended November 30, 2004. Fertilizer is the largest component of
production costs for the Companys sugarcane crop. Due to price increases in
the cost of fuel used to produce fertilizer, fertilizer prices increased 23%
over their prior year levels. The increased price of fertilizer caused the
Companys production costs per ton to rise above the expected net realizable
value. As a result, the Company adjusted its inventoried sugarcane crop by
$834 thousand in the first quarter of fiscal 2005, charging it to cost of
sales. This adjustment, caused by the price increase in fertilizer described
above, was the primary cause of the loss.
* Ranch earnings increased during the three months ended November 30, 2005
when compared to the same period a year ago ($0.5 million compared to
$0.2 million for the quarters ended November 30, 2005 and 2004, respectively).
Prices for Alicos beef products have improved during the current year
compared to the prior year ($0.82 per pound average for the first quarter
months of fiscal year 2006, compared to $0.76 per pound for the first quarter
of fiscal 2005). The price increase is the primary cause for the increased
profits in the current year.
Management expects continued profitability from the Companys agricultural
operations in fiscal year 2006, but at reduced levels from fiscal year 2005
due to the hurricane.
About Alico
Alico, Inc., an agribusiness company operating in Central and Southwest
Florida, owns approximately 136,000 acres of land located in Collier, Hendry,
Lee and Polk Counties. The company is involved in various operations and
activities including citrus fruit production, cattle ranching, sugarcane, sod
production, and forestry. The Company also leases land for farming, cattle
grazing, recreation and oil exploration, and is increasingly involved in
exploring real estate development in and beyond its holdings.
Statements in this press release that are not statements of historical or
current fact constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other unknown
factors that could cause the actual results of the Company to be materially
different from the historical results or from any future results expressed or
implied by such forward-looking statements. The forward-looking statements
contained herein are also subject generally to other risks and uncertainties
that are described from time to time in the Companys reports and registration
statements filed with the Securities and Exchange Commission.
For Further Information Contact:
John R. Alexander
La Belle, Florida
(863) 675-2966
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