Annual report pursuant to section 13 and 15(d)

Segment Information

v2.4.0.8
Segment Information
 12 Months Ended
Sep. 30, 2013
Segment Information [Abstract]  
Segment Information

Note 15. Segment Information

 

Segments

 

The Company manages its land based upon its primary usage and reviews its performance based upon three primary classifications - Citrus Groves, Improved Farmland and Ranch and Conservation.  In addition, it operates an Agricultural Supply Chain Management business that is not tied directly to its land holdings and Other Operations that include leasing mines and oil extraction rights to third parties.  The Company presents its financial results and the related discussions based upon these five segments (Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Other Operations).  In the fourth quarter of fiscal year 2013, the Company changed its internal operations to align with the way it manages its business operations. As a result, the Company has realigned its financial reporting segments to match its internal operations.  The Company has reclassified prior years to conform to the fiscal year 2013 presentation.  None of these changes affect the Company's previously report consolidated results.  The primary change in previously reported segment results is to reclassify the former Land Leasing and Rentals segment's revenues and expenses to the related land classifications. A description of the Company's business segments is as follows:

 

  · Citrus Groves include activities related to planting, owning, cultivating and/or managing citrus groves in order to produce fruit for sale to fresh and processed citrus markets.

 

  · Agricultural Supply Chain Management and Support includes activities related to the purchase and resale of fruit, as well as, to value-added services which include contracting for the harvesting, marketing and hauling of citrus.

 

  · Improved Farmland includes activities related to planting, owning, cultivating, managing and/or leasing improved farmland. Improved farmland is acreage that has been converted, or is permitted to be converted, from native pasture and which has various improvements including irrigation, drainage and roads.

 

  · Ranch and Conservation includes activities related to cattle grazing, sod, native plant and animal sales, leasing, management and/or conservation of unimproved native pasture land.

 

  · Other Operations include activities related to rock mining royalties, oil exploration and other insignificant lines of business.

 

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.

 

Information by business segment is as follows:

 

(in thousands) Fiscal Year Ended September 30,
  2013   2012   2011
           
Revenues:                      
Citrus Groves $ 43,689     $ 55,423     $ 47,088  
Agricultural Supply Chain Management   28,412       48,334       36,115  
Improved Farmland   21,917       15,316       8,642  
Ranch and Conservation   6,755       7,348       6,015  
Other Operations   888       766       732  
Intersegment Revenues   10,981       11,820       9,679  
Eliminations   (10,981 )     (11,820 )     (9,679 )
                       
Total revenue   101,661       127,187       98,592  
                       
Operating expenses:                      
Citrus Groves   31,533       30,995       27,764  
Agricultural Supply Chain Management   27,949       47,693       35,109  
Improved Farmland   16,202       11,574       7,343  
Ranch and Conservation   3,798       3,497       3,640  
Other Operations   505       1,196       1,303  
                       
Total operating expenses   79,987       94,955       75,159  
                       
Gross profit:                      
Citrus Groves   12,156       24,428       19,324  
Agricultural Supply Chain Management   463       641       1,006  
Improved Farmland   5,715       3,742       1,299  
Ranch and Conservation   2,957       3,851       2,375  
Other Operations   383       (430 )     (571 )
                       
Total gross profit $ 21,674     $ 32,232     $ 23,433  
                       
                       
Capital expenditures:                      
Citrus Groves $ 3,942     $ 1,562     $ 2,102  
Agricultural Supply Chain Management   81       388       65  
Improved Farmland   9,468       10,482       4,633  
Ranch and Conservation   3,475       741       1,214  
Other Operations   27       -       16  
Other capital expenditures   1,931       2,748       4,235  
                       
Total capital expenditures $ 18,924     $ 15,921     $ 12,265  
                       
Depreciation, depletion and amortization:                      
Citrus Groves $ 2,114     $ 2,088     $ 1,977  
Agricultural Supply Chain Management   169       223       213  
Improved Farmland   5,131       4,051       2,873  
Ranch and Conservation   1,250       992       937  
Other Operations   347       427       481  
Other depreciation, depletion and amortization   664       648       846  
                       
Total depreciation, depletion and amortization $ 9,675     $ 8,429     $ 7,327  

 

 

 

 

(in thousands) September 30,
  2013   2012
       
Assets:              
Citrus Groves $ 52,592     $ 47,154  
Agricultural Supply Chain Management   994       2,066  
Improved Farmland   75,348       63,916  
Ranch and Conservation   14,696       11,274  
Other Operations   15,094       4,905  
Other Corporate Assets   40,116       55,768  
               
Total Assets $ 198,840     $ 185,083  

 

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.