Alico Inc. announces net earnings for the nine months ended May 31

Business Wire, July 18, 1995

LA BELLE, Fla.--(BUSINESS WIRE)--July 18, 1995--Ben Hill Griffin III, chairman of Alico Inc. (ALCO), a La Belle agribusiness company, announced that net earnings for the nine months ended May 31, 1995 were $4.9 million, or 45 cents per share.

The earnings for the nine months ended May 31, 1994 were $6.5 million, or 93 cents per share.

Operating revenues during the first nine months of fiscal 1995 totaled $25.7 million, compared to $27.5 million during the same period in fiscal 1994.

Operating revenues during the three months ended May 31, 1995 (third quarter of fiscal 1995) totaled $8.8 million, compared to $8.2 million during the same period a year ago. Net earnings for the third quarter of fiscal 1995 were $1.2 million, or 17 cents per share, compared to $3.5 million, or 49 cents per share, during the same period a year ago.

Stockholders' equity as of May 31, 1995 was $69.4 million compared to $66.7 million at May 31, 1994.

Griffin noted that the reduction in net income was primarily due to a decrease in earnings from real estate transactions during the first nine months of fiscal 1995, compared to the same period a year ago. Griffin also cited an overall decline in earnings from agricultural operations.

Griffin stated that: "The first sale of Alico's Lee County property, since the siting of the new university, occurred during the third quarter of fiscal 1994. The 40 acre sale generated a $3.9 million gain which is included in earnings for the prior period. The previously reported $8.3 million pending land sale in Polk County, Fla., which had been scheduled for closing in May 1995, is now scheduled for closing in July 1995."

Griffin stated that while the boxes harvested from this year's citrus crop increased over last year, the favorable effect on revenue was largely offset by a decrease in the pounds of solids per box, resulting in decreased citrus earnings. Additionally, sugarcane earnings were reduced, due to a decrease in the number of acres planted and harvested during the period. Ranch earnings also declined due to lower market prices and an increase in the number of calves placed in feedlots and held for later marketing.

CONTACT: Alico Inc., La Belle

W. Bernard Lester, 813/675-2966