Welcome to Alico's first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. As a reminder, today's conference is being recorded. Earlier today, the company issued a press release announcing its results for the first quarter ended December 31st, 2021. If you have not had a 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 that may cause actual results to differ materially from those expressed or implied in the 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 report on Form 10-K, current reports on Form 8-K, and any amendment 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 and adjusted EBITDA. 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 call over to the company's President and CEO, Mr. John Kiernan.
Thank you, Peter, and thank you everyone for joining us for Alico's first quarter 2022 earnings call this morning. Almost 2 years after the COVID-19 pandemic began in March of 2020, we remain encouraged that consumption of not from concentrate orange juice by retail consumers has remained strong. This trend has led to further improved market pricing for early and mid-season fruit in the current harvest season as compared to the prior year. Pricing for the early and mid-season fruit is estimated to be between $2.55 and $2.60 for the current harvest season, which would be between 25 and 30 cents higher than a year ago. We are confident this trend will also be beneficial to Valencia market pricing for this season.
With respect to the 2022 harvest, which commenced in December 2021, we have seen, along with the entire Florida citrus industry, a decrease in processed box production of the early and mid-season crop as compared to the same period last year. The USDA is forecasting a 22.9% decline for the early and mid-season crop. We are anticipating a 12%-15% decrease for our early and mid-season crop as compared to the same period last year. We believe that this lower rate of decline as compared to the state forecast is due to the efficiencies of our comprehensive growth management program. Harvesting for our early and mid-season crop is almost complete.
In the last week of January 2022, certain areas where our citrus trees are located experienced below freezing conditions that are expected to have a material adverse effect on the yield of this season's Valencia crop. We are still in the process of assessing the extent of the damage and the impact on our current financial position, results of operations and cash flows, and to the extent to which there may be any long-term effects. We have increased our growth density within our existing acreage and have planted approxim,ately 1.5 million trees in these acres since 2018.
While we cannot determine what the future production levels will be, particularly as we assess the impact of the freeze on our existing citrus groves, we remain confident in our strategy of increasing density and believe that the first plantings of these trees from 2018 should start to generate meaningful production in fiscal 2023 and support higher levels of production for their useful lives. We continue to pursue strategic sales opportunities for our ranch land and sold approximately 1,900 acres of ranch land, including a sale to the State of Florida for 1,638 acres in the quarter ended December 31st, 2021. We are also engaged with multiple private parties for other ranch land sales transactions which are either under contract or in final negotiations.
In looking at our most recent sales, we have seen an increase in the prices paid per acre of ranch land. This is attributable to some of our prior sales either being encumbered with easements or having significant wetlands, as well as buyer interest for real estate, including our ranch land acres intensifying within the State of Florida. Our remaining 32,000 acres of ranch land is premium property. We believe based on our recent activity, that these remaining acres will realize the same or greater price per acre as compared to our most recent sales. Regarding labor, we believe our labor force is stable. We continue to explore ways to strengthen the connection our employees have with our company. Most recently, we awarded each employee with over a year of service restricted shares of our common stock.
In addition, as required, we will continue to utilize outside third parties to provide us with H-2A labor to support our agricultural operations. With respect to our overall growing costs and general and administrative costs, they have remained in line with our expectations. We continue to maintain stringent controls and look for efficiencies that will allow us to continue to see improvement regarding these costs. We continue to move forward with our environmental, social, and governance initiatives, and most recently published our inaugural sustainability report in December 2021, which is available on our website. Upon publication, we saw an improvement in our ISS scores. With that, I'll turn the call over to Rich, who will discuss in more detail our financial results.
Thank you, John, and good morning, everyone. As our business is seasonal and the majority of our citrus crop is harvested in the second and third quarters of the fiscal year, with the majority of our profit and cash flows also recognized in the second and third quarters, the quarterly results for the first quarter are not indicative of our full-year results. Total operating revenue for the quarter ended December 31st, 2021 was $15.3 million compared to $13.7 million for the quarter ended December 31st, 2020. Our citrus revenue was $14.7 million and $12.9 million for the quarters ended December 31st, 2021 and 2020 respectively.
The increase in revenue for the three months ended December 31st, 2021 compared to the three months ended December 31st, 2020 was primarily due to an increase in revenue generated from our early and mid-season harvest. This increase was driven by an increase in the market price per pound solids, which is due to decreased production of citrus fruit and continued strong consumption of non-concentrate orange juice, which has led to reduced inventory levels. While consumption has slightly dropped from its highest levels when the COVID-19 pandemic initially started back in March 2020, consumption, as reported in the latest Nielsen data, has increased approximately 11% for the 12-month period ended January 1, 2022 as compared to a similar 12-month period prior to the COVID-19 pandemic.
Additionally, we saw a slight increase in the early- and mid-season boxes harvested for the three months ended December 31st, 2021 compared to the three months ended December 31st, 2020. This was a result of us harvesting a greater percentage of our early and mid-season crop through December 31st, 2021, measured as a percentage of our estimated full-year early and mid-season crop as compared to the same period in the prior year. Overall, we, along with the Florida industry in general, anticipate recording a smaller number of boxes during the current harvest season, which is believed to be caused by both disease and weather as compared to the previous year. As John mentioned, we do anticipate that our decline in box production will be lower than that forecasted by the USDA.
Partially offsetting this increase in revenues was a decrease in pound solids per box during the three months ended December 31st, 2021 as compared to the three months ended December 31st, 2020, mainly because the internal quality of the fruit was not as strong as it was in the previous year. Total operating expenses were $13.5 million and $8.3 million for the three months ended December 31st, 2021 and 2020 respectively. The increase in operating expenses for the three months ended December 31st, 2021 as compared to the three months ended December 31st, 2020 primarily relates to Alico receiving less proceeds under the Citrus Recovery Block Grant Program during the three months ended December 31st, 2021 when compared to the three months ended December 31st, 2020.
Through the end of fiscal year 2021, the reimbursement under this program was substantially complete, with the exception of funds that are due relating to certain crop insurance expenses. The amount to be received for this crop insurance reimbursement is estimated to be approximately $2 million, of which approximately $1 million was received in October 2021. By comparison, in the three months ended December 31st, 2020, we received $4.1 million in proceeds under the Citrus Recovery Block Grant Program.
The increase in operating expenses is also in part attributable to us harvesting a greater percentage of boxes in relation to the estimated total boxes to be harvested for the full season during the three months ended December 31st, 2021 as compared to the same period in the prior year, leading to a larger percentage of cost being allocated to cost of sales in the current period. General and administrative expenses for the three months ended December 31st, 2021 totaled $2.6 million compared to approximately $2.5 million for the three months ended December 31st, 2020. The increase was due in large part to an increase of approximately $100,000 relating to a company-sponsored incentive for employees to obtain the COVID-19 vaccine.
An increase in stock compensation expense of approximately $110,000 relating to restricted stock unit awards to certain executives and senior managers. Consulting expenses of approximately $100,000 relating to our environmental, sustainability and governance implementation strategy and related work. Partially offsetting these increases were decreases related to payroll and payroll-associated expenses of approximately $140,000, primarily relating to the reduction in administrative personnel made during the fiscal year ended September 30th, 2021. A reduction in legal expenses of approximately $70,000, which is mainly the result of us having incurred additional legal expenses in the three months ended December 31st, 2020, relating to the acquisition of a citrus grove in October 2020.
Other income net for the three months ended December 31st, 2021 and 2020 was approximately $7.6 million and approximately $2.2 million, respectively. The increase in other income net was primarily due to gains on sale of real estate, property and equipment and assets held for sale of approximately $8.4 million relating to the sale of approximately 1,900 acres from the Alico Ranch to several third parties. For the three months ended December 31st, 2020, we recognized gains of approximately $3.4 million relating to the sale of real estate, property and equipment and assets held for sale.
Additionally, the improvement was in part due to a decrease in interest expense of approximately $300,000 for the three months ended December 31st, 2021, as compared to the three months ended December 31st, 2020, which resulted from the reduction of our long-term debt attributable to making mandatory principal payments and certain prepayments. During the quarter ended December 31st, 2021, we sold certain acres of land to the State of Florida at a below market value, which resulted in us taking a charitable deduction for tax purposes. This charitable contribution is estimated to generate a net tax benefit of approximately $4.9 million.
For the fiscal quarter ended December 31st, 2021 and December 31st, 2020, we reported net income attributable to Alico common stockholders of approximately $10.1 million and approximately $3.8 million, respectively. As John mentioned, in the last week of January 2022, certain areas where our citrus trees are located experienced below-freezing conditions. We are in the process of assessing the extent of the damage and the impact on our current financial position, results of operations and cash flows. At this time, given these uncertainties and the lower anticipated box production and the average pound-size per box expected this season before the recent freeze, we are withdrawing our previously issued guidance for net income, EBITDA, adjusted net income, and adjusted EBITDA for fiscal year 2022.
We expect to update our guidance once we can evaluate more complete information about the impact of the freeze. We believe with the strength of our current balance sheet that we will be able to endure the potential loss from the damage caused by the freeze event and continue to pay our current level of dividends and other operational costs without issue. I will now pass the call back to John.
Thanks, Rich. While the Florida citrus industry has faced challenges with respect to box production over the last couple of harvest seasons, we remain confident that our strategy of increasing our plantings within our groves will yield increased production. We are pleased to see that we have maintained our momentum of opportunistic ranch land sales in fiscal year 2022, and we'll look to deploy these proceeds in a manner that brings greater returns to our stockholders. We will now open the line up to questions from industry analysts. Peter?
Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We have our first question from Gerry Sweeney with Roth Capital. Please go ahead.
Hey, good morning, John and Rich. Thanks for taking my call.
Hi, Gerry. How are you?
I'm doing well, thanks. Just want to get a couple questions on clarity. That USDA report came out prior to the freeze. That report basically saying State of Florida is down about 23% and you were saying Alico down 12%-15%. That was one event, and then the separate event was the freeze in the last week of January. Just putting them together, obviously, just to be clear, that 12%-15% down in box production was prior to the freeze, then you're assessing the freeze damage, correct?
Correct. Keep in mind those numbers that you just described that we talked about earlier.
Yeah.
Are only for the early and mid-season crop.
Okay.
Which is about 40% of our production is tied to early and mid-season.
Got it. That USDA re-report, that was the other part, didn't encompass the entire year production, including the Valencia, it was just the early and mids.
Yeah. They forecasted the entire crop was gonna be down substantially. We just reiterated the numbers. The freeze came at the very tail end of harvesting for early mids. The impact on early mids would be somewhat negligible.
Okay. Oh, that. I got that. Yeah. Okay. Understood. Then the pricing you were looking at last year was $2.25, this year $2.55-$2.60. That's for early and mids. If we look at Valencia, is it the same sort of step change into Valencia that additional, you know, $0.30, or how do we look at that?
That's a very good question. It's gonna be complicated a little bit because it's all gonna be post-freeze. No Valencia are being sold right now.
Got it.
It's tough to say what the market will be, but Rich, unless you feel otherwise, I think it's safe to say that you will see an incremental step up year-over-year in Valencia pricing.
Part of it is, pound solids, how the fruit comes out with that, correct?
Definitely the quality of fruit is gonna be determining a key part of the pricing itself. If it doesn't meet minimum standards, it's not gonna be sold for anything.
Got it. The final question just from my end, just wondered if there was any damage to the actual trees, or is this just increased fruit drop and maybe quality of fruit? Short-term hiccup, long-term assets in play are fine.
Absolutely. We're reluctant to be very specific 'cause we're rarely, you know, inspecting every part of every grove right now, and it's gonna take another couple of weeks. The first indications that we've seen does not appear that Alico has suffered any significant amount of any significant tree damage from the freeze. It is gonna be basically related to seasonal fruit, which unfortunately
Got it.
is what we're preparing to harvest right now. Long term, it does not look like this is gonna be that substantial. Again, we have two more weeks that we have to do our homework on. As soon as we know all that, we're gonna put out another release to inform the shareholders.
Got it. When will Valencia start hitting the market in terms of pricing, the earliest they start to, so we get a view to that.
I think the first loads are expected to be sold within the next few days. You should see s ome indications of market pricing shortly after that.
Got it. Okay, perfect. All right, that's it for me. I appreciate it. Thanks.
Thanks, Gerry. Have a great day.
Thank you. We have reached the end of today's question and answer session. I would like to turn the call back over to Mr. Kiernan for closing remarks.
Thanks again, Peter, and thank you everyone for joining our call today and for your continued support of Alico. Rich and I both look forward to speaking with you at the second quarter results, which we'll hold in May. Again, we intend to have another release that goes out when we've got some updated financial guidance as soon as we're able to do our evaluations and our homework relative to the recent weather event. Thank you very much.
Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for participation, and have a great day.