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The
Company’s Bowen Brothers
subsidiary generated revenues totaling $19.9 and $20.7 million for
the
three and six months ended February 28, 2007. Gross profit for the
three
and six months ended February 28, 2007 was $1.2 million and $1.0 million,
respectively. Additionally, by utilizing Bowen to harvest the Company’s
fruit during fiscal year 2007, the Company was able to reduce its citrus
harvesting costs from the market rates it paid in prior
years.
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Citrus
revenues were $20.3 million and $21.9 million for the three and six
months
ended February 28, 2007, respectively. The Citrus division recorded
profits of $9.5 million and $10.4 million for the quarter and six months
ended February 28, 2007, respectively. Hurricanes, citrus canker finds
and
increased real estate development in the central and southern portions
of
Florida during the past several years have combined to reduce the supply
of citrus, resulting in price increases for citrus products across
the
industry.
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Sugarcane
generated profits of $0.6 million and $0.1 million for the quarter
and six
months ended February 28, 2007, respectively.
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Cattle
revenues were $0.9 million and $5.0 million for the quarter and six
months
ended February 28, 2007, respectively. Cattle profits were $0.1 million
and $0.5 million for the three and six months ended February 28, 2007,
respectively.
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The
Company’s Plant World Subsidiary generated
gross revenues of $1.6 million and a profit of $0.2 million during
the
first six months of fiscal year 2007. Plant
World has expanded its product lines to include several ornamental
varieties with higher profit margins per unit. As a result, Plant World
is
expected to continue to improve its financial performance in fiscal
year
2007 and beyond as it scales up production of the new varieties.
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Revenues
from the sale of vegetables were $2.3 million for the six months ended
February 28, 2007, respectively, generating a profit of $0.4 million.
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Revenues
from the sale of sod were $0.9 million for six month period ended February
28, 2007. The Sod division generated profits of $0.4 million for the
six
months ended February 28, 2007. The Company is currently developing
an
additional 500 acres of cultivated sod which will become available
for
sale by the second quarter of fiscal year 2008.
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In
December 2006, the Company’s subsidiary, Alico-Agri, Ltd. restructured
three contracts in connection with the sale of property in Lee County,
Florida. The original contracts were entered into in 2001 and 2003,
respectively, for approximately 5,609 acres near Bonita Springs, Florida.
The Company received $7.5 million upon execution of the restructured
agreements and recognized gains of $2.8 million as a
result.
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