Quarterly report pursuant to Section 13 or 15(d)

Disclosures about reportable segments

v2.4.0.8
Disclosures about reportable segments
 9 Months Ended
Jun. 30, 2014
Disclosures about reportable segments [Abstract]  
Disclosures about reportable segments

Note 7. Disclosures about reportable 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 leases for mining 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 structure 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 2014 presentation.  None of these changes affect the Company's previously reported 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 and 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 for 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 which 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 1, Description of the Business and Basis of Presentation. Total revenues represent sales to unaffiliated customers, as reported in the Company's Condensed Consolidated Statements of Operations. All intercompany transactions have been eliminated.

 

Information by business segment is as follows:

 

 (in thousands)   Three Months Ended June 30,     Nine Months Ended June 30,
    2014   2013   2014   2013
Revenues:                        
Citrus Groves     $             21,967      $             19,209      $             47,023      $             43,664  
Agricultural Supply Chain Management                     4,083                     10,553                     12,324                     27,712  
Improved Farmland                     2,160                       4,760                     19,442                     21,679  
Ranch and Conservation                         515                           409                       1,956                       1,265  
Other Operations                         (50 )                         298                           394                           675  
Intersegment Revenues                     4,173                       4,674                       9,299                     10,919  
Eliminations                    (4,173 )                    (4,674 )                    (9,299 )                 (10,919 )
                         
Total revenue                   28,675                     35,229                     81,139                     94,995  
                         
Operating expenses:                        
Citrus Groves                    13,617                     12,789                     29,963                     31,488  
Agricultural Supply Chain Management                     3,916                     10,095                     12,085                     26,886  
Improved Farmland                     6,591                       3,028                     20,986                     16,044  
Ranch and Conservation                         164                           120                           870                           380  
Other Operations                         128                           132                           280                           332  
                         
Total operating expenses                   24,416                     26,164                     64,184                     75,130  
                         
Gross profit:                        
Citrus Groves                      8,350                       6,420                     17,060                     12,176  
Agricultural Supply Chain Management                         167                           458                           239                           826  
Improved Farmland                    (4,431 )                     1,732                      (1,544 )                     5,635  
Ranch and Conservation                         351                           289                       1,086                           885  
Other Operations                       (178 )                         166                           114                           343  
                         
Total gross profit    $               4,259      $               9,065      $             16,955      $             19,865  
                         
                         
Capital expenditures:                        
Citrus Groves     $               2,324      $               1,971      $               6,350      $               3,088  
Agricultural Supply Chain Management   -                          2                             71                             10  
Improved Farmland                           44                           860                       3,729                       8,506  
Ranch and Conservation                         103                           162                           879                       3,194  
Other Operations                       (172 )                           16                             28                           107  
Other capital expenditures                         168                           808                           168                       1,887  
                         
Total capital expenditures    $               2,467      $               3,819      $             11,225      $             16,792  
                         
                         
Depreciation, depletion and amortization:                        
Citrus Groves     $                  533      $                  535      $               1,587      $               1,578  
Agricultural Supply Chain Management                           41                             48                           123                           171  
Improved Farmland                         572                       1,307                       3,194                       3,721  
Ranch and Conservation                         335                           312                           997                           856  
Other Operations                         477                             95                           586                           287  
Other depreciation, depletion and amortization                       (252 )                         195                           148                           517  
                         
Total depreciation, depletion and amortization    $               1,706      $               2,492      $               6,635      $               7,130  

 

(in thousands)     June 30,
2014		   September 30, 2013
         
Assets:        
Citrus Groves       $                  62,916  $                  52,592
Agricultural Supply Chain Management                            1,568                            994
Improved Farmland                          72,646                      75,348
Ranch and Conservation                          17,537                      14,696
Other Operations                          16,162                      15,094
Other Corporate Assets                          30,169                      40,116
         
Total Assets      $               200,998  $               198,840