Alico, Inc. (NASDAQ:ALCO) Q1 2024 Results Conference Call February 8, 2024 8:30 AM ET
Company Participants
John Kiernan - President and Chief Executive Officer
Brad Heine - Chief Financial Officer
Conference Call Participants
Gerry Sweeney - ROTH Capital
Operator
Welcome to Alico's First Quarter 2024 Earnings Conference Call. [Operator Instructions] And as a reminder, today's conference is being recorded.
Last night, the company issued a press release announcing its results for the first quarter ended December 31, 2023. If you have not had the 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 may cause actual results to differ materially from those expressed or implied in these statements. Important factors that could cause or contribute to such differences include risk details in the company's quarterly reports on Form 10-Q and annual reports on Form 10-K, current reports Form 8-K and any 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, adjusted EBITDA and net debt. For more details on these measures, please refer to the company's press release issued earlier today.
With that, I would like to turn the conference call over to the company's President and CEO, Mr. John Kiernan. Please go ahead.
John Kiernan
Thank you, Kelsey, and thank you, everyone, for joining us for Alico's First Quarter 2024 Earnings Call this morning. As previously announced, on September 18, 2023, Alico signed a contract with the State of Florida to sell the remaining 17,229 acres of the Alico Ranch and on December 21, 2023, we closed on the sale for $77.6 million in gross proceeds. A portion of the proceeds from this sale were used to repay the outstanding balance on our working capital line of credit and $19.1 million of Metlife variable rate term loans plus accrued interest. The remainder, we retained in cash.
Results from our early and mid-season harvest this season were disappointing resulting in an inventory write-down of approximately $10.8 million in the first quarter of fiscal year 2024. We believe that the early and mid-season box production was affected by the continued impact of Hurricane Ian. We are cautiously optimistic that our Valencia crop, which we'll begin harvesting soon will show a stronger rate of recovery. That harvest is expected to begin in another week or so.