Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.0.8
Segment Information
 12 Months Ended
Sep. 30, 2014
Segment Information [Abstract]  
Segment Information

Note 16. 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 a citrus nursery, 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 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 2. Basis of Presentation and 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,
  2014   2013   2012
                       
Revenues:                      
Citrus Groves $ 47,069     $ 43,689     $ 55,423  
Agricultural Supply Chain Management   12,376       28,412       48,334  
Improved Farmland   20,429       21,917       15,316  
Ranch and Conservation   8,172       6,755       7,348  
Other Operations   634       888       766  
Intersegment Revenues   9,621       10,981       11,820  
Eliminations   (9,621 )     (10,981 )     (11,820 )
                       
Total revenue   88,680       101,661       127,187  
                       
Operating expenses:                      
Citrus Groves   30,213       31,533       30,995  
Agricultural Supply Chain Management   12,317       27,949       47,693  
Improved Farmland   21,356       16,202       11,574  
Ranch and Conservation   4,330       3,798       3,497  
Other Operations   374       505       1,196  
                       
Total operating expenses   68,590       79,987       94,955  
                       
Gross profit:                      
Citrus Groves   16,856       12,156       24,428  
Agricultural Supply Chain Management   59       463       641  
Improved Farmland   (927 )     5,715       3,742  
Ranch and Conservation   3,842       2,957       3,851  
Other Operations   260       383       (430 )
                       
Total gross profit $ 20,090     $ 21,674     $ 32,232  
                       
                       
Capital expenditures:                      
Citrus Groves $ 7,462     $ 3,942     $ 1,562  
Agricultural Supply Chain Management   1,615       81       388  
Improved Farmland   3,696       9,468       10,482  
Ranch and Conservation   1,413       3,475       741  
Other Operations   37       27       -  
Other capital expenditures   285       1,931       2,748  
                       
Total capital expenditures $ 14,508     $ 18,924     $ 15,921  
                       
Depreciation, depletion and amortization:                      
Citrus Groves $ 2,132     $ 2,114     $ 2,088  
Agricultural Supply Chain Management   164       169       223  
Improved Farmland   3,320       5,131       4,051  
Ranch and Conservation   1,330       1,250       992  
Other Operations   743       347       427  
Other depreciation, depletion and amortization   191       664       648  
                       
Total depreciation, depletion and amortization $ 7,880     $ 9,675     $ 8,429  

 

(a) Other Operations includes the former Real Estate segment as well as other operations.

 

 

 

 

(in thousands) September 30,
  2014     2013
       
Assets:              
Citrus Groves $ 67,388     $ 52,592  
Agricultural Supply Chain Management   2,498       994  
Improved Farmland   57,726       75,348  
Ranch and Conservation   13,920       14,696  
Other Operations   26,356       15,094  
Other Corporate Assets   35,679       40,116  
               
Total Assets $ 203,567     $ 198,840  

 

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.