Alico, Inc. (NASDAQ:ALCO) Q2 2024 Earnings Conference Call May 7, 2024 8:30 AM ET
Company Participants
John Kiernan - President & Chief Executive Officer
Brad Heine - Chief Financial Officer
Conference Call Participants
Gerry Sweeney - ROTH Capital
Operator
Welcome to Alico's Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, today's conference is being recorded. Last night, the company issued a press release announcing its results for the second quarter ended March 31, 2024. If you have not had a chance to view the release, that 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 website as well.
Before we begin, we would like to remind everyone that the prepared remarks may 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 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, 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 expect 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 yesterday.
With that, I would now like to turn the call over to the company's President and CEO, Mr. John Kiernan.
John Kiernan
Thank you, Jenny, and thank you everyone for joining us for Alico's Second Quarter 2024 earnings call this morning. I along with nearly everyone else involved in the Florida citrus industry disappointed and frustrated with the production realized this past season. Fruit quality was poor at the beginning of both crop harvest, but improved then the rate of fruit drop accelerated, lower levels of production for early and mid-season and Valentia harvest this season, resulted in lower levels of pound solids being sold, which has led to a total inventory write-down of $28.5 million for the fiscal year 2024.
We believe that the early and mid-season and Valencia box production was affected by the continued impacts of Hurricane Ian. We managed our costs aggressively over the past year, but the lower revenue base was out of our control for the second year in a row. Alico began treating citrus trees in January of 2023 with an Oxytetracycline product via trunk injection as a citrus greening therapy. In 2023, we treated over 35% of our trees with OTC, which was expected to mitigate some of the impacts of citrus greening and also decrease the rate of fruit drop and improve food quality.