Quarterly report pursuant to Section 13 or 15(d)

Disclosures about reportable segments

v2.4.1.9
Disclosures about reportable segments
 6 Months Ended
Mar. 31, 2015
Disclosures about reportable segments [Abstract]  
Disclosures about reportable segments

Note 8. 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 a citrus nursery and 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).  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 owning 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, a citrus nursery 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 1, Description of Business and Basis of Presentation. Total revenues represent sales to unaffiliated customers, as reported in the Company's Condensed Combined Consolidated Statement of Comprehensive Income. All intercompany transactions have been eliminated.


Information by business segment is as follows:

 

(in thousands)     Three Months Ended March 31,          Six Months Ended March 31,  
 
     2015       2014       2015       2014  
 
Revenues:                               
Citrus Groves   $ 50,371     $  22,590     $ 63,289     $ 28,223  
Agricultural Supply Chain Management    3,296       6,135       4,479       8,241  
Improved Farmland    982       10,750       2,074       17,282  
Ranch and Conservation    309       910       1,145       1,441  
Other Operations    164       257       313       444  
Intersegment Revenues    4,115       4,000       5,386       6,245  
Eliminations    (4,115 )     (4,000 )     (5,386 )      (6,245 ) 
 
Total revenue    55,122       40,642       71,300       55,631  
 
Operating expenses:                               
Citrus Groves    40,349       14,699       50,476 18,243  
Agricultural Supply Chain Management    2,740       5,844       4,111 8,169  
Improved Farmland    1,286       8,865       2,077 14,395  
Ranch and Conservation    623       1,171       1,368 1,547  
Other Operations    45       90       93       507  
 
Total operating expenses    45,043       30,669       58,125       42,861  
 
Gross profit:                               
Citrus Groves    10,022 7,891       12,813 9,980
Agricultural Supply Chain Management    556 291       368 72
Improved Farmland    (304 ) 1,885       (3 ) 2,887
Ranch and Conservation    (314 ) (261 )     (223 ) (106 )
Other Operations    119       167
    220       (63 )
 
Total gross profit  $ 10,079     $ 9,973     $ 13,175     $ 12,770  
 
 
Capital expenditures:                               
Citrus Groves  $ 17,661
  $ 2,083
  $ 19,230     $ 4,026  
Agricultural Supply Chain Management    119
    38
    329       71  
Improved Farmland    -
    212
    -       3,685  
Ranch and Conservation    14
    33
    190       776  
Other Operations    3,396
    196
    3,411       200  
Other Capital Expenditures    -
    (343 )     79       -  
 
Total capital expenditures  $
 21,190     $ 2,219     $ 23,239     $ 8,758  
 
 
Depreciation, depletion and amortization:                               
Citrus Groves  $ 3,584     $ 525     $ 4,840     $ 1,054  
Agricultural Supply Chain Management    93       53       145       82  
Improved Farmland    -       1,285       -       2,622  
Ranch and Conservation    242       329       485       662  
Other Operations    270       21       398       109  
Other Depreciation, Depletion and Amortization    36       214       200       400  
 
Total depreciation, depletion and amortization  $ 4,225      $ 2,427     $ 6,068     $ 4,929  

(in thousands)   March 31,
2015		   September 30,
2014
             
Assets:             
Citrus Groves    $ 422,070    $ 121,399 
Agricultural Supply Chain Management      3,097      2,498 
Improved Farmland      119      57,726 
Ranch and Conservation      13,384      13,920 
Other Operations      31,292      26,356 
Other Corporate Assets      8,460      35,679 
         
Total assets    $ 478,422   $ 257,578