Annual report pursuant to section 13 and 15(d)

Segment Information

v2.4.0.6
Segment Information
 12 Months Ended
Sep. 30, 2012
Segment Information [Abstract]  
Segment Information

Note 15. Segment Information

 

Segments

 

The Company is organized into six operating segments which span our five lines of business. The operating segments are strategic business units that offer different products and services. They are managed separately and decisions about allocation of resources are determined by our management team based on these strategic business units. The operating segments are as follows:

  · Citrus Groves include activities related to planting, cultivating and/or managing citrus groves in order to produce fruit for delivery to fresh and processed citrus markets.
  · Alico Fruit Company, LLC ("Alico Fruit") (formerly "Bowen Brothers Fruit Company, LLC") includes activities related to agricultural value-added services which include contact for harvesting, hauling and marketing and the purchase and resale of fruit.
  · Sugarcane includes activities related to planting, cultivating and/or managing sugarcane fields in order to produce sugarcane for sale to a sugar processor.
  · Cattle include the production of beef cattle for sale.
  · Land Leasing and Rental includes the leasing of land to others on a tenant-at-will basis for grazing, farming, oil and mineral exploration and recreational uses.
  · Other Operations consists of insignificant operations that do not otherwise fit within the other five defined operating segments.

 

Intersegment sales and transfers are accounted by the Company as if the sales or transfers were to third parties at current market prices. Goods and services produced by these segments are sold to wholesalers and processors in the United States who prepare the products for consumption. The Company evaluates the segments performance based on direct margins from operations before general and administrative costs, interest expense and income taxes not including nonrecurring gains and losses.  

 

The accounting policies of the segments are the same as those described in Note 2, Basis of Presentation and Summary of Significant Accounting Policies. Total revenues represent sales to unaffiliated customers, as reported in the Company's Consolidated Statements of Operations. All intercompany transactions have been eliminated.

 

Lines of Business

 

The Company operates five lines of business related to our various land holdings. The lines of business are as follows:

 

  · Citrus Groves include activities related to planting, owning, cultivating and/or managing citrus groves on prepared grove land in order to produce fruit for sale to fresh and processed citrus markets.
  · Improved Farmland includes activities related to planting, owning, cultivating, managing and/or leasing improved farmland. Improved farmland is acreage that has been recovered from native pasture and which has various improvements including irrigation, drainage and roads.
  · Ranch and Conservation includes activities related to cattle grazing and management, sod, native plant and animal sales, leasing, management and/or conservation of unimproved native pastureland.
  · Agricultural Supply Chain Management and Support includes activities related to value-added services which include contracting for harvesting, marketing and hauling and the purchase and resale of fruit.
  · Other Operations include activities related to rock and sand mining, oil exploration and other insignificant lines of business.

 

Information by business segment is as follows:

 

(dollars in thousands)   For the Year Ended September 30, 2012
    Citrus Groves   Agricultural Supply Chain
Management		   Improved
Farmland		   Ranch and
Conservation 		  Other Operations   Intra-Company
Eliminations		   Total
Revenues                                                        
Alico Fruit   $ -     $ 60,154     $ -     $ -     $ -     $ (11,820 )   $ 48,334  
Citrus Groves     55,423       -       -       -       -       -       55,423  
Sugarcane     -               14,442       -       -       -       14,442  
Cattle     -       -       -       5,894       -       -       5,894  
Land leasing and rentals     -       -       874       1,067       480       -       2,421  
Other operations     -       -       -       387       286       -       673  
Total operating revenue     55,423       60,154       15,316       7,348       766       (11,820 )     127,187  
Operating expenses:                                                        
Alico Fruit     -       59,513       -       -       -       (11,820 )     47,693  
Citrus Groves     30,995       -       -       -       -       -       30,995  
Sugarcane     -       -       11,127       -       -       -       11,127  
Cattle     -       -       -       3,188       -       -       3,188  
Land leasing and rentals     -       -       447       309       301       -       1,057  
Other operations(a)     -       -       -       -       895       -       895  
Total operating expenses     30,995       59,513       11,574       3,497       1,196       (11,820 )     94,955  
Gross profit:                                                        
Alico Fruit     -       641       -       -       -       -       641  
Citrus Groves     24,428       -       -       -       -       -       24,428  
Sugarcane     -       -       3,315       -       -       -       3,315  
Cattle     -       -       -       2,706       -       -       2,706  
Land leasing and rentals     -       -       427       758       179       -       1,364  
Other operations(a)     -       -       -       387       (609 )     -       (222 )
Gross profit   $ 24,428     $ 641     $ 3,742     $ 3,851     $ (430 )   $ -     $ 32,232  
                                                         

 

             
(dollars in thousands)   For the Year Ended September 30, 2011
    Citrus Groves   Agricultural Supply Chain
Management		   Improved
Farmland		   Ranch and
Conservation 		  Other Operations   Intra-Company
Eliminations		   Total
Revenues                                                        
Alico Fruit   $ -     $ 45,794     $ -     $ -     $ -     $ (9,679 )   $ 36,115  
Citrus Groves     47,088       -       -       -       -       -       47,088  
Sugarcane     -               7,796       -       -       -       7,796  
Cattle     -       -       -       4,613       -       -       4,613  
Land leasing and rentals     -       -       846       1,096       490       -       2,432  
Other operations     -       -       -       306       242       -       548  
Total operating revenue     47,088       45,794       8,642       6,015       732       (9,679 )     98,592  
Operating expenses:                                                        
Alico Fruit     -       44,788       -       -       -       (9,679 )     35,109  
Citrus Groves     27,764       -       -       -       -       -       27,764  
Sugarcane     -       -       6,834       -       -       -       6,834  
Cattle     -       -       -       3,178       -       -       3,178  
Land leasing and rentals     -       -       509       378       333       -       1,220  
Other operations(a)     -       -       -       84       970       -       1,054  
Total operating expenses     27,764       44,788       7,343       3,640       1,303       (9,679 )     75,159  
Gross profit:                                                        
Alico Fruit     -       1,006       -       -       -       -       1,006  
Citrus Groves     19,324       -       -       -       -       -       19,324  
Sugarcane     -       -       962       -       -       -       962  
Cattle     -       -       -       1,435       -       -       1,435  
Land leasing and rentals     -       -       337       718       157       -       1,212  
Other operations(a)     -       -       -       222       (728 )     -       (506 )
Gross profit   $ 19,324     $ 1,006     $ 1,299     $ 2,375     $ (571 )   $ -     $ 23,433  
                                                         

 

             
(dollars in thousands)   For the Year Ended September 30, 2010
    Citrus Groves   Agricultural Supply Chain
Management		   Improved
Farmland		   Ranch and
Conservation 		  Other Operations   Intra-Company
Eliminations		   Total
Revenues                                                        
Alico Fruit   $ -     $ 36,796     $ -     $ -     $ -     $ (7,900 )   $ 28,896  
Citrus Groves     36,469       -       -       -       -       -       36,469  
Sugarcane     -               4,097       -       -       -       4,097  
Cattle     -       -       -       4,035       -       -       4,035  
Land leasing and rentals     -       -       895       1,040       422       -       2,357  
Other operations(a)(b)     -       -       -       257       3681       -       3,938  
Total operating revenue     36,469       36,796       4,992       5,332       4,103       (7,900 )     79,792  
Operating expenses:                                                        
Alico Fruit     -       36,069       -       -       -       (7,900 )     28,169  
Citrus Groves     25,730       -       -       -       -       -       25,730  
Sugarcane     -       -       3,707       -       -       -       3,707  
Cattle     -       -       -       3,772       -       -       3,772  
Land leasing and rentals     -       -       426       309       368       -       1,103  
Other operations(a)(b)     -       -       -       241       7,147       -       7,388  
Total operating expenses     25,730       36,069       4,133       4,322       7,515       (7,900 )     69,869  
Gross profit:                                                        
Alico Fruit     -       727       -       -       -       -       727  
Citrus Groves     10,739       -       -       -       -       -       10,739  
Sugarcane     -       -       390       -       -       -       390  
Cattle     -       -       -       263       -       -       263  
Land leasing and rentals     -       -       469       731       54       -       1,254  
Other operations(a)(b)     -       -       -       16       (3,466 )     -       (3,450 )
Gross profit   $ 10,739     $ 727     $ 859     $ 1,010     $ (3,412 )   $ -     $ 9,923  
                                                         

 

  (a) Other operations include the former real estate segment. During the fourth quarter of fiscal year 2012, management changed its business strategy in regards to Alico Land Development Co., which operated the real estate segment. The President terminated employment and operations are winding down.
  (b) Other operations include vegetables which operations were terminated in June of 2010.
       
(dollars in thousands)  

Year ended September 30
   

2012

  

2011

  

2010
Capital expenditures:                        
Alico Fruit   $ 388     $ 65     $ 373  
Citrus Groves     1,562       2,102       1,273  
Sugarcane     10,482       4,633       3,586  
Cattle     741       1,214       1,260  
Land leasing and rentals     -       16       62  
                         
Segment capital expenditures     13,173       8,030       6,554  
                         
Other capital expenditures     2,748       4,235       1,649  
                         
Total capital expenditures   $ 15,921     $ 12,265     $ 8,203  
                         
Depreciation, depletion and amortization:                        
Alico Fruit   $ 223     $ 213     $ 315  
Citrus Groves     2,088       1,977       2,021  
Sugarcane     4,051       2,873       1,713  
Cattle     992       937       1,292  
Land leasing and rentals     427       481       546  
                         
Total segment depreciation, depletion and amortization     7,781       6,481       5,887  
                         
Other depreciation, depletion and amortization     648       846       1,334  
                         
Total depreciation, depletion and amortization   $ 8,429     $ 7,327     $ 7,221  
                         

 

(dollars in thousands)  

September 30
   

2012

 

  

2011

 
Total assets:                
Alico Fruit   $ 2,066     $ 2,888  
Citrus Groves     47,154       45,554  
Sugarcane     63,916       53,213  
Cattle     11,274       12,310  
Land leasing and rentals     4,905       5,524  
                 
Segment assets     129,315       119,489  
Other assets (b)     55,768       60,546  
                 
Total assets   $ 185,083     $ 180,035  
                 

 

  (a) The September 30, 2011 balance includes $6,600,000 for a foreclosed parcel of property; the property was subsequently sold and closed on July 25, 2012 and October 3, 2012. See Note 7, Property, Building and Equipment, Net and Note 18. Subsequent Events.