Good morning. And welcome to Alico’s Second Quarter 2025 Earnings Call. Currently, all participants are in a listen-only mode. As a reminder, today’s conference is being recorded. I would now like to turn the call over to your host, John Mills, Managing Partner at ICR.

Good morning, everyone. And thank you for joining us for Alico’s second quarter fiscal year 2025 conference call. On the call today are John Kiernan, President and Chief Executive Officer; and Brad Heine, Chief Financial Officer. By now, everyone should have access to the second quarter fiscal year 2025 earnings release, which went out yesterday at approximately 5 p.m. Eastern Time. If you’ve not had a chance to view the release, it’s 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’d like to remind everyone that the prepared remarks contain forward-looking statements. Such statements are subject to risk, uncertainties and other factors that may cause the 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 and tell 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 law. During this call, the company may 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. And with that, it is my pleasure to turn the call over to the company’s President and CEO, Mr. John Kiernan.

Thank you, John. Good morning, everyone, and thank you for joining us for Alico’s second quarter of fiscal year 2025 earnings call. I’d like to update you on the progress we’ve made in executing our Strategic Transformation since our announcement in January. At the end of April, we completed our fiscal year 2025 harvest, effectively concluding the majority of our capital investment in Citrus Operations. We will conduct a final harvest on the majority of the remaining 3,783 acres of operational citrus groves in fiscal year 2026. With this transition, we’ve reduced our workforce from approximately 200 to 25 employees, aligning our organizational structure with our transformed business model and significantly lowering operating expenses. On the land monetization front, we’ve completed the sale of 2,100 acres this year as part of our strategy to unlock the value of our substantial real estate portfolio. We previously announced our expectation to realize approximately $20 million in land sales this fiscal year based upon transactions that are under option agreements or have been negotiated and are expected to close this year. We are now raising our outlook to potentially have an additional $30 million of land sales or more this fiscal year, which would be a 150% increase from our prior guidance for fiscal year 2025 expected land sales. This acceleration in land sales could dramatically improve our annual adjusted EBITDA and strengthen our ability to return capital to shareholders. We’ve also been actively engaged with agricultural operators throughout Florida to diversify our remaining agricultural activities. These discussions have focused on potential sod production, expanding sand mining activities, and leases to grow seasonal crops such as corn, sugar cane, and a variety of fruits and vegetables. We’ve negotiated agreements to lease approximately 5,250 acres of different groves to third-party citrus growers next season.…

Thank you, John. Good morning, everyone. The second fiscal quarter ended March 31, 2025. Revenue decreased 1% to $18 million, compared to $18.1 million for the prior year period. For the six months ended March 31, 2025, revenue decreased 9% to $34.9 million, compared to $32.1 million for the prior year period. For the three months and six months ended March 31, 2025, Alico Citrus harvested approximately 4.7 million pounds and 8.7 million pounds solids of fruit, respectively, compared to 5.8 million pounds and 10.4 million pounds solids of fruit in the same periods of the prior fiscal year. As expected, harvest volumes in 2025 were lower compared to 2024, driven by the impact of Hurricane Milton, which hit Florida in October of 2024. Alico’s blended price per pound solids for the three months and six months ended March 31, 2025, increased $0.70 and $0.85, respectively, as compared to the same period in the prior year as a result of more favorable pricing in one of our contracts with Tropicana. As John said, we completed our last major citrus harvest in April and have thus concluded the majority of our capital investment in our Citrus Operations. Land Management and Other operations revenue for the three months and six months ended March 31, 2025, increased 107% and 74%, respectively, as compared to the same periods in the prior year. The increase was primarily the result of an increase in rock and sand royalty income and sod sales, partially offset by lower farming, grazing and hunting lease revenues due to the sale of the Alico Ranch. Total operating expenses for the three months and six months ended March 31, 2025, were $167.7 million and $192.8 million, respectively, as compared to $36.3 million and $64.5 million in the same periods in the prior…

Thank you, Brad. Now let me share our guidance for fiscal year 2025 and some concluding thoughts on our strategic direction. Our Strategic Transformation to become a diversified land company has already exceeded our fiscal year 2025 goals. At this time, we are forecasting that our cash balance at the end of this fiscal year will be approximately $25 million and our net debt will be approximately $60 million with only the required $2.5 million balance outstanding under our revolving line of credit. We expect to generate approximately $20 million in adjusted EBITDA in fiscal year 2025. These projections are supported by the previously announced estimate of $20 million of land sales and cash generated by the 2024-2025 citrus harvest. We currently project that land sales could potentially exceed $50 million this year, which would increase our adjusted EBITDA and cash and decrease our net debt projections. But we recognize that each pending transaction has its own challenges, just as all previous sales Alico has transacted over the past decade have experienced, and there is no certainty regarding timing until sales are closed. Looking ahead to the remainder of fiscal year 2025, we’ll focus on completing the sale of our remaining identified lands, continuing entitlement work on our development properties, finalizing agreements with agricultural operators for our diversified farming operations, and further strengthening our balance sheet to support long-term value creation. When considering the full scope of our transformation, we believe the present value of our current land holdings could be worth approximately $650 million to $750 million, with roughly 75% valued for agricultural use and assuming about 10% entitled for development within the next five years. I’m confident that our Strategic Transformation positions Alico to deliver enhanced long-term returns for our shareholders by balancing the development of select high-value properties with diversified agricultural operations, we’re creating a business model that leverages our core strengths while adapting to market opportunities. And with that, we’ll now open the line to questions from industry analysts. Margo?

Thank you. [Operator Instructions] We’ll take our question from Gerry Sweeney with ROTH Capital. Please go ahead.

Hello. This is Brandon Rogers for Gary -- for Gerry Sweeney. Thanks for taking my question.

Our pleasure. How are you doing, Brandon?

Good. Good. I just had a question on the $15.8 million landfill in the quarter. Could you just provide any additional color there? You said it was -- how many -- I don’t know exactly how many acres you said, but...

The 1,000 acres you’re talking about?

Landfill in the quarter.

Yeah. Landfill…

The $15.8 million.

2,100 -- that was 2,100 acres.

All right. And then what county was that located in?

Off the top of my head, I -- oh, wait, Hendry County.

Hendry. All right. Thank you. And then, so for the actual $50 million in land sales for the current year, are you in current discussions with any other land sales? And then what gives you confidence in potentially achieving the $50 million aspiring target for the year?

We’ve negotiated an agreement to sell some acres. It’s still going through a process, so it’s going to go through diligence right now, and that’s underway. So the timing is a bit uncertain as the diligence process proceeds. And the second part of your question is we’re talking to several other parties about potential land sales, but nothing that’s solid enough for us to report at this time.

Okay. Thank you. And then turning to Corkscrew, you said construction on the village could begin in 2028 or 2029 if all approvals are granted. What are some potential milestones we can watch for between now and the potential entitlement approvals?

I think the entitlement approvals themselves are kind of what the milestones would be. There will be a lot of kind of individual meetings and revisions and resubmittals as we go. But I think as you see the approvals at the local, state and federal levels come through, you’ll know where the milestones stand.

Awesome. Thank you for taking my questions.

Thanks, Brandon.

Thank you. At this time, we have no further questions. I’d like to turn the call back over to our speakers for final remarks.

Thank you, Margo. And thank you to everyone for joining us today. We appreciate your continued support as we navigate this exciting Strategic Transformation. And we look forward to updating you on our further progress in the coming quarters. We’ll see you in August.

Thank you. And this does conclude today’s program. We thank you for your participation. You may disconnect at any time.