PICO Holdings (PICO) shares dropped more than 3% in early trading Monday after the company reported a wider Q4 loss and a decline in revenue, mainly due to the holding company’s agribusiness operations, which PICO is considering selling.
For the fourth quarter of 2014, PICO reported a net loss of $31.1 million or $1.36 per share, compared to a net loss of $7.8 million or $0.34 per share in the fourth quarter of 2013. Q4 revenues fell to $74.4 million compared with $76.0 million in the same period of 2013. Analyst estimates for comparison were not available.
PICO reported steeper losses in all three of its main businesses: water resources, real estate and agribusiness.
John Hart, PICO’s president and chief executive officer. said the company is reviewing financial and strategic alternatives for monetizing its investment in Northstar Agri Industries, a canola seed crushing operation with a single plant in northern Minnesota. “We believe that Northstar may have a higher valuation in the hands of a strategic buyer than as part of a diversified holding company.”
PICO also has interests in Vidler Water, a water resource development business and UCP, (UCP), a homebuilder and land developer. PICO shares fell 3.6% to $16.38, in a 52-week range of $15.66 to $26.25.