Alico announces executive resignation and amends EVP employment agreement

Alico , Inc. (NASDAQ:ALCO), a $248 million market cap agricultural company whose stock has gained about 25% year-to-date, reported changes in its executive leadership and compensation arrangements in a press release statement filed with the Securities and Exchange Commission. According to InvestingPro analysis, while Alico has maintained dividend payments for 21 consecutive years, analysts anticipate challenges ahead with net income expected to decline this year. InvestingPro offers 5 additional key insights about Alico’s business outlook and valuation metrics in its comprehensive Pro Research Report.

On Monday, Danny Sutton submitted his resignation as President of Alico Citrus, effective August 1. The company did not disclose the reasons for Sutton’s departure in the filing.

Additionally, Alico entered into an amended employment agreement with Mitch Hutchcraft, Executive Vice President – Real Estate, on Friday. The amendment extends Hutchcraft’s employment through September 30, 2030, with automatic one-year extensions unless either party gives 60 days’ notice.

Under the new agreement, Hutchcraft’s base salary will increase by $25,000 per year from his current base of $335,000, starting with fiscal year 2026. He will also be eligible for an annual discretionary cash bonus of up to $40,000, contingent on the achievement of general corporate objectives.

The amendment also provides for real estate incentive bonuses, which are based on the achievement of certain company real estate project milestones. These bonuses will be paid annually after each fiscal year, with at least 75% in cash and up to 25% in fully vested restricted stock unit awards under Alico’s Amended and Restated Stock Incentive Plan of 2015.

As part of the agreement, Hutchcraft will be granted a performance-based restricted stock unit award. This award will vest upon completion of all necessary permits for the East Corkscrew Grove Villages and all permits for the entire Corkscrew Grove Villages project by September 30, 2035. The number of shares awarded will be determined by dividing $1 million by the average trading price of Alico’s common stock for the 10 trading days prior to the completion date.

If Hutchcraft’s employment is terminated by the company without cause, by Hutchcraft for good reason following a change in control, or due to his death, the award will remain eligible to vest for up to five years following termination, or until September 30, 2035, whichever comes first. In the event of death, the company may settle the award in cash.

All information is based on a press release statement included in Alico’s recent SEC filing.

In other recent news, Alico Inc. reported its second-quarter fiscal 2025 earnings, highlighting a revenue decline to $18 million, a 1% drop from the previous year. Despite the revenue decrease, Alico achieved a significant improvement in adjusted EBITDA, recording a gain of $12.7 million compared to a previous loss of $16.5 million. The company also announced a quarterly cash dividend of $0.05 per share, scheduled for payment in July 2025. In a strategic move, Alico has mutually agreed to terminate its Orange Purchase Agreement with Tropicana Manufacturing Company, with both parties fulfilling obligations for the 2024/2025 Crop Year. The company is shifting its focus from citrus operations to land management, initiating a $50 million share repurchase program as part of its strategic transformation. Analysts from ROTH Capital have shown interest in Alico’s land sales and development plans, which include the Corkscrew Grove Villages project. Alico’s earnings per share of -14.58 missed analyst forecasts, primarily due to accelerated depreciation expenses. However, the company exceeded revenue expectations, reporting $18 million against a forecast of $8 million.

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