Alico, Inc. (NASDAQ:ALCO) Q2 2022 Results Conference Call May 9, 2022 4:30 PM ET
Company Participants
John Kiernan - President and Chief Executive Officer
Rich Rallo - Chief Financial Officer
Conference Call Participants
Gerry Sweeney - ROTH Capital
Operator
Welcome to Alico's Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. Earlier today, the Company issued a press release, announced its results for the second quarter ended March 31, 2022.
If you have not had a chance to view the release, it is available on the Investor Relations portion of the Company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well.
Before we begin, we would like to remind everyone that the prepared remarks today contain forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in those statements.
Important factors that could cause or contribute to such differences include risks and details in the Company's quarterly report on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and any amendments thereto filed with the SEC and those mentioned in the earnings release. The Company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by the law.
During this call, the Company will also discuss non-GAAP financial measures, including EBITDA and adjusted EBITDA. For more details on those measures, please refer to the Company's press release issued earlier today.
With that, I would like to turn the call over to the Company's President and CEO, Mr. John Kiernan. Please go ahead.
John Kiernan
Thank you, operator, and thank you, everyone, for joining us for Alico's second quarter 2022 earnings call this afternoon. The current citrus harvest season has been a disappointing one for Alico as well as the entire industry in Florida.
In late January 2022, a freeze event negatively impacted the current year of Valencia harvest. This is in addition to a harvest season that was already anticipated to produce less fruit than in the prior year, with fewer pieces of fruit available on the citrus trees as well as greater fruit drop, which is believed to be caused by disease and weather.
USDA is forecasting a 33.9% decline in the current year of Valencia crop as compared to the same period in the prior year, with a significant portion attributed to the freeze event. We are anticipating our decline to be approximately 12% to 15% year-over-year.