Quarterly report pursuant to sections 13 or 15(d)

Disclosures about reportable segments

v2.3.0.11
Disclosures about reportable segments
 9 Months Ended
Jun. 30, 2012
Disclosures about reportable segments [Abstract]  
Disclosures about reportable segments

Note 7. Disclosures about reportable segments

 

Alico has six reportable segments: Bowen, Citrus Groves, Sugarcane, Cattle, Real Estate and Land Leasing and Rentals. All of the Company's operations are located in Florida. Intersegment sales and transfers are accounted for as if the sales or transfers were to third parties at current market prices.

 

Agricultural Segments:

 

  • Bowen operations include supply chain management services (harvest and haul) for Alico's citrus crop and other growers. Bowen's operations also include the purchase and resale of citrus fruit.
  • Citrus Groves operations consist of cultivating citrus trees in order to produce citrus fruit for delivery to the fresh and processed citrus markets.
  • Sugarcane operations consist of cultivating sugarcane for sale to a sugar processor.
  • Cattle operations primarily include production of beef cattle for sale and raising replacement heifers.

 

Goods and services produced by these segments are sold to wholesalers and processors in the United States which prepare the products for consumption.

 

Non-agricultural Segments

 

  • The Real Estate segment, operated on behalf of Alico by ALDI, is engaged in the planning and strategic positioning of all of the Company's land, which includes seeking entitlement of the land assets in order to obtain, enhance or preserve rights to develop the property in the future and negotiating and/or renegotiating sales contracts.
  • The Land Leasing and Rental segment leases land to others on a tenant-at-will basis for grazing, farming, oil and mineral exploration, recreational and other uses.

 

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies herein and in the Annual Report on Form 10-K. Total revenues represent sales to unaffiliated customers, as reported in the Company's Condensed Consolidated Statements of Operations (Unaudited). All intercompany transactions have been eliminated.

 

The Company's reportable segments are strategic business units that offer different products and services. They are managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company evaluates each segment's performance based on direct margins from operations before general and administrative costs, interest expense and income taxes, not including nonrecurring gains and losses.

 

The following table summarizes the performance of the Company's segments and the related depreciation expense for the three and nine month periods ended June 30, 2012 and 2011, and the related assets as of June 30, 2012 and September 30, 2011:

 

(dollars in thousands)

 

  

Three months ended

June 30,

  

Nine months ended

June 30,
    2012   2011   2012   2011
Revenues (from external customers except as noted):                
Bowen   $ 16,753     $ 16,131     $ 47,547     $ 35,044  
Intersegment sales through Bowen     4,907       4,532       11,820       9,679  
Citrus Groves     21,829       22,049       55,331       46,685  
Sugarcane     652       211       14,311       7,672  
Cattle     378       220       978       669  
Real Estate     -       -       -       -  
Land Leasing and Rentals     691       621       2,011       1,912  
Revenue from segments     45,210       43,764       131,998       101,661  
Other operations     117       109       450       404  
Less: intersegment revenues eliminated     (4,907 )     (4,532 )     (11,820 )     (9,679 )
Total operating revenue   $ 40,420     $ 39,341     $ 120,628     $ 92,386  
                                 
Operating expenses:                                
Bowen   $ 16,496     $ 15,468     $ 46,223     $ 33,798  
Intersegment expenses through Bowen     4,907       4,532       11,820       9,679  
Citrus Groves     12,050       11,407       31,058       27,378  
Sugarcane     539       36       11,090       6,874  
Cattle     241       120       559       382  
Real Estate     85       90       327       364  
Land Leasing and Rentals     252       292       768       908  
Segment operating expenses     34,570       31,945       101,845       79,383  
Other operations     229       89       259       282  
Less: intersegment expenses eliminated     (4,907 )     (4,532 )     (11,820 )     (9,679 )
Total operating expenses   $ 29,892     $ 27,502     $ 90,284     $ 69,986  
                                 
Gross profit (loss):                                
Bowen   $ 257     $ 663     $ 1,324     $ 1,246  
Citrus Groves     9,779       10,642       24,273       19,307  
Sugarcane     113       175       3,221       798  
Cattle     137       100       419       287  
Real Estate     (85 )     (90 )     (327 )     (364 )
Land Leasing and Rentals     439       329       1,243       1,004  
Gross profit from segments     10,640       11,819       30,153       22,278  
Other     (112 )     20       191       122  
Gross Profit   $ 10,528     $ 11,839     $ 30,344     $ 22,400  

 

(dollars in thousands)

 

 

  

Three months ended

June 30,

  

Nine months ended

June 30,
    2012   2011   2012   2011
Depreciation, depletion and amortization:                                
Bowen   $ 60     $ 41     $ 161     $ 170  
Citrus Groves     519       488       1,562       1,463  
Sugarcane     1,049       787       2,969       2,061  
Cattle     265       258       801       781  
Land Leasing and Rentals     104       45       321       135  
Total segment depreciation and amortization     1,997       1,619       5,814       4,610  
Other depreciation, depletion and amortization     150       282       440       764  
Total depreciation, depletion and amortization   $ 2,147     $ 1,901     $ 6,254     $ 5,374  

 

(dollars in thousands)  

June 30,

2012

    

September 30,

2011

  
Total assets:                
Bowen   $ 2,120     $ 2,888  
Citrus Groves     43,001       45,554  
Sugarcane     59,296       53,213  
Cattle     13,681       10,196  
Real Estate     12,009       12,932  
Land Leasing and Rentals     5,203       5,524  
Segment assets     135,310       130,307  
Other assets     54,308       49,728  
                 
Total assets   $ 189,618     $ 180,035