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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
__X__ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended August 31, 2000.
OR
_____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ________________ to_______________.
Commission file number 0-261.
ALICO, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Florida 59-0906081
_______________________________ ____________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 338, La Belle, Florida 33975
________________________________________ __________
(Address of principal executive offices) (Zip Code)
(863)675-2966
Registrant's telephone number, including area code______________
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Name of each exchange on
Title of each class which registered
___________________ ________________________
None None
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
COMMON CAPITAL STOCK, $1.00 Par value, Non-cumulative
_____________________________________________________
(Title of Class)
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. _____
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
such registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes __X__ No_____
As of October 13, 2000 there were 7,027,827 shares of stock outstanding and
the aggregate market value (based upon the average bid and asked price, as
quoted on NASDAQ) of the common stock held by non-affiliates was
approximately $55,232,725.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's Annual Report and Proxy Statement dated
November 15, 2000 are incorporated by reference in Parts II and III,
respectively.
PART I
______
Item 1. Business.
__________________________
Alico, Inc. (the "Company") is generally recognized as an agribusiness
company operating in Central and Southwest Florida. The Company's primary
asset is 141,530 acres of land located in Collier, Hendry, Lee and Polk
Counties. (See table on Page 6 for location and acreage by current primary
use.) The Company is involved in various operations and activities
including citrus fruit production, cattle ranching, sugarcane and sod
production, and forestry. The Company also leases land for farming, cattle
grazing, recreation, and oil exploration.
The Company's land is managed for multiple use wherever possible. Cattle
ranching, forestry and land leased for farming, grazing, recreation and oil
exploration, in some instances, utilize the same acreage.
Agricultural operations have combined to produce from 68 to 91 percent of
annual revenues during the past five years. Citrus groves generate the
most gross revenue. Sugarcane ranks second in revenue production. While
the cattle ranching operation utilizes the largest acreage, it ranks third
in the production of revenue. Approximately 6,719 acres of the Company's
property are classified as timberlands, however, the area in which these
lands are located is not highly rated for timber production. These lands
are also utilized as native range, in the ranching operation, and leased
out for recreation and oil exploration.
Diversification of the Company's agricultural base was initiated with the
development of a Sugarcane Division at the end of the 1988 fiscal year.
The 9,588 acres in production during the 2000 fiscal year consisted of
229 acres planted in 1994, 903 acres planted in 1995, 2,649 acres planted
in 1996 and 2,430 acres planted in 1997 and 3,377 acres planted in 1998.
Leasing of lands for rock mining and oil and mineral exploration, rental of
land for grazing, farming, recreation and other uses, while not classified
as agricultural operations, are important components of the Company's land
utilization and operation. Gross revenue from these activities during the
past five years has ranged from 2 to 3 percent of total revenue.
The Company is not in the land sales and development business, except
through its wholly owned subsidiary, Saddlebag Lake Resorts, Inc.; however,
it does from time to time sell properties which, in the judgment of
management, are surplus to the Company's primary operations. Gross revenue
from land sales during the past five years has ranged from 1 to 24 percent
of total revenues.
For further discussion of the relative importance of the various segments
of the Company's operations, including financial information regarding
revenues, operating profits (losses) and assets attributable to each major
segment of the Company's business, see Note 12 of Notes to Consolidated
Financial Statements and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" included elsewhere in this document.
Subsidiary Operations
_____________________
The Company has two wholly owned subsidiaries; Saddlebag Lake Resorts,
Inc. (Saddlebag) and Agri-Insurance Company, Ltd. (Agri).
Saddlebag,is active in the subdividing, development and sale of real
estate. Saddlebag has two subdivisions near Frostproof, Florida which
have been developed and are on the market. Approximately 60% of the
lots have been sold.
Agri, newly formed during fiscal 2000, was created to write crop
insurance against catastrophic losses due to weather and/or disease.
The subsidiary wrote a minor policy in August 2000 and expects to write
additional coverages during the next fiscal year. The financial results
of the operation of these subsidiaries are consolidated with those of
the Company. (See Note 1 of Notes to Consolidated Financial Statements.)
Citrus
______
Approximately 10,761 acres of citrus were harvested during the 2000 season.
Since 1983 the Company has maintained a marketing contract covering the
majority of the Company's citrus crop with Ben Hill Griffin, Inc., a
Florida corporation and major shareholder. The agreement provides for
modifications to meet changing market conditions and provides that either
party may terminate the contract by giving notice prior to August 1st,
preceding the fruit season immediately following. Under the terms of the
contract the Company's fruit is packed and/or processed and sold along with
fruit from other growers, including Ben Hill Griffin, Inc. The proceeds
are distributed on a pro rata basis as the finished product is sold.
During the year ended August 31, 2000, approximately 76% of the Company's
fruit crop was marketed under this agreement, as compared to 89% in 1998/99.
In addition, Ben Hill Griffin, Inc. provides harvesting services to the
Company for citrus sold to unrelated processors. These sales accounted for
the remaining 24% of total citrus revenue for the year.
Ranch
_____
The Company has a cattle operation located in Hendry and Collier Counties,
Florida which is engaged primarily in the production of beef cattle and the
raising of replacement heifers. The breeding herd consists of
approximately 15,000 cows, bulls and replacement heifers. Approximately
59% of the herd are from one to five years old, while the remaining 41% are
six and older. The Company primarily sells to packing and processing
plants. The Company also sells cattle through local livestock auction
markets and to contract cattle buyers. These buyers provide ready markets
for the Company's cattle. The loss of any one or a few of these plants
and/or buyers would not, in management's view, have a material adverse
effect on the Company's cattle operation. Subject to prevailing market
conditions, the Company may hedge its beef inventory by entering into cattle
futures contracts to reduce exposure to changes in market prices.
Sugarcane
_________
The Company had 9,588 acres and 5,432 acres of sugarcane in production
during the 1999/00 and 1998/99 fiscal years, respectively. The 1999/00 and
1998/99 crops yielded approximately 321,000 and 216,000 gross tons,
respectively.
Forest Products
_______________
Approximately 5% of the Company's properties are classified as timberlands.
The principal forest products sold by the Company are pulpwood and sabal
palms. These products are sold to a paper company and various landscaping
companies, respectively. The Company does not incur any of the harvesting
expenses.
Part of the lands, from which the timber was removed, is being converted to
semi-improved pasture and other uses.
Land Rental for Grazing, Agricultural and Other Uses
____________________________________________________
The Company rents lands to others for grazing, farming and recreational
uses, on a tenant-at-will basis, for an annual fee. The income is not
significant when compared to overall gross income, however, it does help to
offset the expense of carrying these properties until they are put to a
more profitable use. The Company has developed additional land to lease
for farming.
There were no significant changes in the method of rental for these
purposes during the past fiscal year.
Leases for Oil and Mineral Exploration
______________________________________
The Company has leased subsurface rights to a portion of its properties
for the purpose of oil and mineral exploration. Currently, there are two
leases in effect.
Twenty-four wells have been drilled during the years that the Company has
been leasing subsurface rights to oil companies. The drilling has resulted
in twenty-one dry holes, one marginal producer, which has been abandoned,
and two average producers, still producing.
Mining Operations: Rock and Sand
_________________________________
The Company leases 7,927 acres in Lee County, Florida to CSR America,
Inc. of West Palm Beach, Florida for mining and production of rock,
aggregate, sand, baserock and other road building and construction
materials.
Royalties which the company receives for these products are based on a
percentage of the F.O.B. plant sales price.
Competition
___________
As indicated, the Company is primarily engaged in a limited number of
agricultural activities, all of which are highly competitive. For
instance, citrus is grown in several states, the most notable of which are:
Florida, California, Arizona and Texas. In addition, citrus and sugarcane
products are imported from some foreign countries. Beef cattle are
produced throughout the United States and domestic beef sales must also
compete with sales of imported beef. Additionally, forest and rock
products are produced in most parts of the United States. Leasing of land
for oil exploration is also widespread.
The Company's share of the market for citrus, sugarcane, cattle and forest
products in the United States is insignificant.
Environmental Regulations
_________________________
The Company's operation is subject to various federal, state and local laws
regulating the discharge of materials into the environment. The Company is
in substantial compliance with all such rules and such compliance has not
had a material effect upon capital expenditures, earnings or the
competitive position of the Company.
While compliance with environmental regulations has not had a material
economic effect on the Company's operations, executive officers are
required to spend a considerable amount of time keeping current on these
matters. In addition, there are ongoing costs incurred in complying with
the permitting and reporting requirements.
Employees
_________
At the end of August 2000, the Company had a total of 144 full-time
employees classified as follows: Citrus 57; Ranch 14; Sugarcane 12;
Facilities Maintenance Support 27; General and Administrative 34. There
are no employees engaged in the development of new products or research.
Seasonal Nature of Business
___________________________
As with any agribusiness enterprise, the Company's business operations are
predominantly seasonal in nature. The harvest and sale of citrus fruit
generally occurs from October to June. Sugarcane is harvested during the
first, second and third quarters. Other segments of the Company's business
such as its cattle and sod sales, and its timber, mining and leasing
operations, tend to be more successive than seasonal in nature.
Item 2. Properties.
____________________________
At August 31, 2000, the Company owned a total of 141,530 acres of land
located in four counties in Florida. Acreage in each county and the
primary classification with respect to present use of these properties is
shown in the following table:
ACREAGE BY CURRENT PRIMARY USE
______________________________
Timber Native Improved Citrus Sugar- Agri-
County Land Pasture Pasture Sod Land cane culture Other Total
___________________________________________________________________________
Polk 251 9,295 447 -- 3,251 -- -- 4 13,248
Lee 743 1,086 -- -- -- -- 1,460 2,369 5,658
Hendry 3,823 46,417 24,774 220 3,763 12,056 16,630 3,629 111,312
Collier 1,902 1,836 1,112 -- 4,129 -- -- 2,333 11,312
______ _______ ______ ___ _____ _____ _____ _____ _______
Totals 6,719 58,634 26,333 220 11,143 12,056 18,090 8,335 141,530
______ _______ ______ ___ _____ _____ ______ _____ _______
______ _______ ______ ___ _____ _____ ______ _____ _______
Of the above lands, the Company utilizes 24,178 acres of improved pasture
plus approximately 58,000 acres of native pasture for cattle production and
7,927 acres are leased for rock mining operations. Much of the land is
also leased for multi-purpose use such as cattle grazing, oil exploration,
agriculture and recreation. In addition to the land shown in the above table,
the Company owns full subsurface rights to 1,064 acres and fractional
subsurface rights to 18,707 acres.
From the inception of the Company's initial development program in 1948,
the goal has been to develop the lands for the most profitable use. Prior
to implementation of the development program, detailed studies were made of
the properties focusing on soil capabilities, topography, transportation,
availability of markets and the climatic characteristics of each of the
tracts. Based on these and later studies, the use of each tract was
determined. It is the opinion of Management that the lands are suitable
for agricultural, residential and commercial uses. However, since the
Company is primarily engaged in agricultural activities, some of the lands
are considered surplus to its needs for this purpose and, as indicated
under Item 1 of this report, sales of real property are made from time to
time.
Management believes that each of the major programs is adequately supported
by agricultural equipment, buildings, fences, irrigation systems and other
amenities required for the operation of the projects.
Item 3. Legal Proceedings.
___________________________________
There are no material pending legal proceedings involving the Company.
Item 4. Submission of Matters to a Vote of Security Holders.
_____________________________________________________________________
None.
Executive Officers of the Company
_________________________________
Pursuant to General Instruction G of Form 10-K, the following list is
included as an unnumbered Item in Part I of this report in lieu of being
included in the Proxy Statement for the Annual Meeting of Stockholders to
be held on December 7, 2000.
Election of Executive Officers is held each year at the Annual Meeting of
the Board of Directors following the Annual Meeting of the Stockholders.
Name Title Age
____ _____ ___
Ben Hill Griffin, III Chairman of the Board (since March 1990),
Chief Executive Officer (since January
1988) and Director (since March 1973) 58
W. Bernard Lester President (since December 1997) and Chief
Operating Officer (since January 1988) and
Director (since 1987), prior to July 1, 1986
was Executive Director of Florida Department
of Citrus for over five years 61
L. Craig Simmons Vice President (effective February, 1995),
Treasurer and Chief Financial Officer
(effective September 1, 1992), prior thereto
was Controller (from January 1 to August 31,1992)
and Assistant Comptroller (from January 1 to
December 31,1991),prior to September 1990
was Controller of Farm/Citrus Division,
Collier Enterprises, Agribusiness Group 48
Section 16 - Beneficial Ownership Reporting Compliance
______________________________________________________
Based solely upon a review of Forms 3 and 4 and amendments thereto
furnished to the Company pursuant to Rule 16a-3(e) during the 2000 fiscal
year and Forms 5 and amendments thereto furnished to the Company during
fiscal year 1992 and certain written representations, if any, made to the
Company, no officer, director or beneficial owners of 10% or more of the
Company's common stock has failed to file on a timely basis any reports
required by Section 16(a) of the Exchange Act to be filed during fiscal 2000.
PART II
_______
Item 5. Market for the Registrant's Common Stock and Related
Stockholder Matters.
_____________________________________________________________________
Common Stock Prices
___________________
The common stock of Alico, Inc. is traded over-the-counter on the NASDAQ
National Market System under the symbol ALCO. The high and low sales
prices, by fiscal quarter, during the years ended August 31, 2000 and 1999
are presented below:
2000 1999
Bid Price Bid Price
_________ _________
High Low High Low
First Quarter 16 5/16 14 1/2 17 3/4 16
Second Quarter 18 1/8 15 1/4 19 1/2 15 7/8
Third Quarter 17 1/4 15 1/16 16 1/2 13 3/4
Fourth Quarter 18 14 13/16 17 3/4 15 1/8
Approximate Number of Holders of Common Stock
_____________________________________________
As of October 13, 2000, there were approximately 734 holders of record of
Alico, Inc. Common Stock.
Dividend Information
____________________
Only year-end dividends have been paid, and during the last three fiscal
years were as follows:
Amount Paid
Record Date Payment Date Per Share
___________ ____________ ___________
October 20, 1997 November 7, 1997 $.60
October 19, 1998 November 6, 1998 $.50
October 18, 1999 November 5, 1999 $.30
Dividends are paid at the discretion of the Company's Board of Directors.
The Company foresees no change in its ability to pay annual dividends in
the immediate future; nevertheless, there is no assurance that dividends
will be paid in the future since they are dependent upon earnings, the
financial condition of the Company, and other factors.
Item 6. Selected Financial Data.
_________________________________________
Years Ended August 3l,
DESCRIPTION 2000 1999 1998 1997 1996
________ ________ ________ ________ ________
(In Thousands, Except Per Share Amounts)
Revenues $ 62,305 $ 44,947 $ 44,679 $ 47,433 $ 36,089
Costs and Expenses 41,730 37,886 33,654 29,583 29,269
Income Taxes 6,464 2,980 4,249 6,677 2,381
Net Income 14,111 4,081 6,776 11,173 4,439
Average Number of
Shares Outstanding 7,028 7,028 7,028 7,028 7,028
Net Income Per Share 2.01 .58 .96 1.59 .63
Cash Dividend Paid per Share .30 .50 .60 .15 .35
Current Assets 56,578 45,182 42,354 37,887 34,877
Total Assets 176,876 156,922 130,554 117,723 114,504
Current Liabilities 12,346 8,738 5,649 4,988 5,115
Ratio-Current Assets
to Current Liabilities 4.58:1 5.17:1 7.50:1 7.59:1 6.82:1
Working Capital 44,232 36,444 36,705 32,899 29,762
Long-Term Obligations 60,985 56,789 34,938 24,582 32,006
Total Liabilities 73,331 65,527 40,587 29,570 37,121
Stockholders' Equity 103,545 91,395 89,967 88,153 77,383
Item 7. Management's Discussion and Analysis of Financial
__________________________________________________________________
Condition and Results of Operations.
____________________________________
The following discussion focuses on the results of operations and the
financial condition of Alico.
This section should be read in conjunction with the consolidated financial
statements and notes.
Liquidity and Capital Resources
_______________________________
The Company had cash and marketable securities of $19.9 million at August
31, 2000 compared with $15.8 million at August 31, 1999. Working capital
increased from $36.4 million at August 31, 1999 to $41.8 million at
August 31, 2000.
Cash outlay for land, equipment, building, and other improvements totaled
$10.0 million during fiscal 2000, compared to $27.9 million during August
31, 1999 and $12.2 million in 1998, respectively. Land excavation for
sugarcane farming development and capital maintenance continued, as did
expenditures for replacement equipment and raising of breeding cattle.
Capital projects for the upcoming year are expected to include development
of additional sugarcane and sod acreage.
Management believes that the Company will be able to meet its working
capital requirements, for the foreseeable future, with internally generated
funds. In addition, the Company has credit commitments which provide
for revolving credit of up to $44 million of which $19.9 million was
available for the Company's general use at August 31, 2000 (see Note 6 of
Notes to consolidated financial statements).
Cautionary Statement
____________________
Readers should note, in particular, that this document contains forward-looking
Statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), that involve substantial risks and
uncertainties. When used in this document, or in the documents incorporated by
reference herein, the words "anticipate", "believe", "estimate", "may", "intend"
and other words of similar meaning, are likely to address the Company's growth
strategy, financial results and/or product development programs. Actual results,
performance or achievements could differ materially from those contemplated,
expressed or implied by the forward-looking statements contained herein.
The considerations listed herein represent certain important
factors the Company believes could cause such results to differ. These
considerations are not intended to represent a complete list of the general or
specific risks that may affect the Company. It should be recognized that other
risks, including general economic factors and expansion strategies, may be
significant, presently or in the future, and the risks set forth herein may
affect the Company to a greater extent than indicated.
Results of Operations
_____________________
Summary of results (in thousands):
Years Ended August 31,
2000 1999 1998
_______ _______ _______
Operating revenue $45,099 $39,346 $41,618
Gross profit 7,202 3,997 9,532
Profit on sale of real estate 13,299 3,847 875
Interest and investment income 3,094 1,302 1,734
Interest expense 3,020 2,085 1,116
Provision for income taxes 6,464 2,980 4,249
Effective income tax rate 31.4% 42.2% 38.5%
Net income 14,111 4,081 6,776
Operating Revenue
_________________
Operating revenues for fiscal 2000 increased compared to fiscal 1999.
An increase in revenues from agricultural activities was the most
significant factor in the rise.
Operating revenues for fiscal 1999 decreased when compared to those of
fiscal 1998. The primary reason was revenues from agricultural operations
were less than in the prior year.
Gross Profit
____________
Gross profit from operations increased 80% during fiscal 2000. Improved
market prices for both citrus and beef combined with increased citrus
production were the primary factors in the rise.
Gross profit from operations decreased 58% during fiscal 1999, when
compared to the prior year. Reduced citrus yields combined with
lower market prices for beef were the primary factors in the decline.
Profit on Sale of Real Estate
____________________________________
Real estate profits increased from $3.8 million to $13.3 million during
fiscal 2000. The most significant factor in the increase was the sale of
1,270 acres in Lee County, Florida for $16.5 million. The sale generated
a $13.4 million pre-tax gain.
Profit from the sale of real estate increased from $875 thousand during
fiscal 1998 to $3.8 million during fiscal 1999. Sales during the fiscal
1999 year included ongoing residential lot sales in Polk County and a
$4.2 million pre-tax gain on the sale of 7,142 acres in Hendry County to
the South Florida Water Management District.
Interest and Investment Income
______________________________
Interest and investment income is generated principally from investments in
marketable equity securities, corporate and municipal bonds, mutual funds,
U.S. Treasury securities and mortgages held on real estate sold on the
installment basis. Realized investment earnings were reinvested throughout
fiscal 2000, 1999 and 1998, increasing investment levels during each year.
The rise in fiscal 2000 and 1999 interest and realized and unrealized
investment income for the years presented resulted from reinvested
investment income and favorable market conditions during each of the years.
As a result of the market downturn of August 1998, the Company experienced
unrealized declines in its portfolio, which were reflected in stockholders'
equity.
Interest Expense
________________
Interest expense increased during fiscal 2000 and 1999, compared to each
respective prior year. This was primarily due to increased borrowings
related to the acquisition of 7,680 acres of sugarcane, citrus and ranch
during fiscal 1999, and borrowings related to the development of 8,444 acres
purchased during fiscal 1998. Total interest cost increased 54% and 53%
during fiscal 2000 and 1999, respectively.
Provision for Income Taxes
__________________________
The effective tax rate decreased to 31.4% during fiscal year 2000, down
from 42.2% during fiscal year 1999, and 38.5% during fiscal year 1998.
Higher taxable income levels combined with the impact of decreased tax
exempt investment income and payments related to the settlement of Internal
Revenue Service examinations combined to raise the effective rates in
the prior fiscal years.
Individual Operating Divisions
______________________________
Gross profit for the individual operating divisions, for fiscal 2000, 1999
and 1998, is presented in the following schedule and is discussed in
subsequent sections:
Years Ended August 31,
(in thousands)
2000 1999 1998
_______ _______ _______
CITRUS
Revenues:
Sales $28,172 $23,518 $26,622
Less harvesting & marketing 9,737 7,902 8,421
_______ _______ _______
Net Sales 18,435 15,616 18,201
Cost and Expenses:
Direct production** 8,447 10,198 6,908
Allocated cost* 3,013 2,977 2,616
_______ _______ _______
Total 11,460 13,175 9,524
_______ _______ _______
Gross profit, citrus 6,975 2,441 8,677
_______ _______ _______
SUGARCANE
Revenues:
Sales 8,501 7,120 6,123
Less harvesting & hauling 1,997 1,341 1,400
_______ _______ _______
Net Sales 6,504 5,779 4,723
Costs and expenses:
Direct production 2,787 1,886 1,926
Allocated cost* 2,178 1,257 1,189
_______ _______ _______
Total 4,965 3,143 3,115
_______ _____ _______
Gross profit, sugarcane 1,539 2,636 1,608
_______ _______ _______
RANCH
Revenues:
Sales 6,062 6,271 6,883
Costs and expenses:
Direct production 3,844 4,507 4,715
Allocated cost* 1,479 1,772 1,552
_______ _______ _______
Total 5,323 6,279 6,267
_______ _______ _______
Gross profit (loss), ranch 739 (8) 616
_______ _______ _______
Total gross profit,
agriculture 9,253 5,069 10,901
_______ _______ _______
OTHER OPERATIONS
Revenues:
Rock products and sand 1,320 1,350 1,203
Oil leases and land rentals 923 711 505
Forest products 84 136 161
Other 37 240 122
_______ _______ _______
Total 2,364 2,437 1,991
Costs and expenses:
Allocated Cost* 658 767 570
General and administrative,
all operations 3,757 2,742 2,789
_______ _______ _______
Total 4,415 3,509 3,359
_______ _______ _______
Gross loss, other
operations (2,051) (1,072) (1,368)
_______ _______ _______
Total gross profit 7,202 3,997 9,533
_______ _______ _______
INTEREST & DIVIDENDS
Revenue 3,094 1,302 1,734
Expense 3,020 2,085 1,116
_______ _______ _______
Interest & dividends, net 74 (783) 618
_______ _______ _______
REAL ESTATE
Revenue:
Sale of real estate 14,112 4,299 1,327
Expenses:
Cost of sales 126 92 93
Other Costs 687 360 360
_______ _______ _______
Total 813 452 453
_______ _______ _______
Gain on sale of real estate 13,299 3,847 874
_______ _______ _______
Income before income taxes $20,575 $ 7,061 $11,025
_______ _______ _______
_______ _______ _______
* Allocated expense includes ad valorem and payroll taxes, depreciation
and insurance.
** Excludes capitalized maintenance cost of groves less than five years of
age consisting of $309 thousand on 411 acres in 2000, $434 on 134 acres
in 1999, and $236 thousand on 620 acres in 1998.
Citrus
______
Gross profit was $ 7.0 million in fiscal 2000, $2.4 million in fiscal 1999,
and $8.7 million for fiscal 1998.
Revenue from citrus sales increased 20% during fiscal 2000, compared to
fiscal 1999 ($28.2 million during fiscal 2000 vs. $23.5 million during
fiscal 1999).
Production and the average market price improved during fiscal 2000,
compared to fiscal 1999.
Harvesting and marketing costs increased from the prior year,
corresponding with an increase in yields. Direct production and allocated
costs decreased 13% resulting from more favorable growing conditions,
requiring less caretaking expenses.
Revenue from citrus sales decreased 11.7% during fiscal 1999, compared
to fiscal 1998 ($23.5 million during fiscal 1999 vs. $26.6 million during
fiscal 1998).
Production declined during fiscal 1999, while the average market price for
citrus increased. However, this improvement did not offset the decrease
in yields.
Harvesting and marketing costs decreased from fiscal 1998, due to the
fewer number of boxes that were harvested during the year. Direct
production and allocated costs also increased (38%), due to inflation and
increased cultivation costs related to young groves recently placed in
service.
The final returns from citrus pools are not precisely determinable at year
end. Returns are estimated each year based on the most current information
available. Differences between the estimates and the final realization
of revenues can be significant. Revenues collected in excess of prior
year and year end estimates were $1.8 million, $160 thousand, and
$2.7 million during fiscal 2000, 1999 and 1998, respectively.
ACREAGE BY VARIETY AND AGE
VARIETY 1-4 5-6 7-8 9-10 11-12 13-14 15-16 17+ Acres
___ ___ ___ ____ _____ _____ _____ ____ _____
Early:
Parson Brown
Oranges - - - 117 30 - - - 147
Hamlin
Oranges - 386 170 62 159 913 130 1,684 3,504
Red Grapefruit - - - 54 73 - - 327 454
White Grapefruit - - - - 306 - - 21 327
Tangelos - - - - - - - 135 135
Navel Oranges - - - 15 - - - 138 153
Mid Season:
Pineapple
Oranges - - 103 - - - - 485 588
Queen Oranges - - - - - - - 51 51
Honey
Tangerines - 80 - - 45 - - 94 219
Midsweet
Oranges 118 54 110 - - - - - 282
Late:
Valencia
Oranges 554 826 310 898 619 571 81 1,425 5,283
_____ ___ ___ ___ _____ ___ ___ _____ _____
Totals: 672 1,346 693 1,146 1,232 1,484 211 4,360 11,143
Sugarcane
_________
Gross profit for fiscal 2000 was $1.5 million compared to $2.6 million in
fiscal 1999, and $1.6 million in fiscal 1998.
Sales revenues from sugarcane increased 20% during fiscal 2000, compared to
fiscal 1999 ($8.5 million vs. $7.1 million, respectively). Direct
production costs increased 61% ($50 million vs. $3.1 million during fiscal
2000 and 1999, respectively.) The rise in revenue and related costs was
the result of the increase in the number of producing acres. However, a
decline in the market price for sugar and sugar yield per acre offset the
increased production, creating a 42% decrease in division earnings.
Sales revenues from sugarcane increased 16% during fiscal 1999, compared to
fiscal 1998 ($7.1 million vs. $6.1 million, respectively). During the same
period, direct production and allocated costs remained the same ($3.1
million in fiscal 1998 and 1999). The rise in earnings was primarily due
to improved sugar yield per acre. While the gross tons harvested during
fiscal 1999 approximated fiscal 1998, the fiscal 1999 crop yielded a higher
sugar content, generating the rise in earnings for this division.
The revenue improvement during fiscal 1999 was largely due to increases in
acres harvested and gross tons yielded per acre. The total gross tons
harvested during fiscal 1998 was 29% higher than the previous year. Poor
weather conditions caused decreased yields during the prior year.
Ranching
________
The gross profit (loss) from ranch operations for fiscal 2000, 1999 and 1998
was $739 thousand, ($8) thousand, and $616 thousand, respectively.
Revenues from cattle sales decreased 3% during fiscal 2000, compared to
fiscal 1999 ($6.1 million in fiscal 2000 vs. $6.3 million in fiscal 1999).
The number of animals sold during the year decreased 13% under the prior year
due to decreased sales of feeder cattle during the year. However, a
significant improvement in market price for beef is the primary cause of the
increase in earnings for this division.
Direct and allocated costs decreased 16% when compared to the prior year
($5.3 million during fiscal 2000 and $6.3 million during fiscal 1999)
corresponding to the decrease in the number of animals sold.
The Company's cattle marketing activities include retention of calves in
western feedlots, contract and auction sales, and risk management contracts.
Revenues from cattle sales decreased 9% during fiscal 1999, compared to
fiscal 1998 ($6.3 million in fiscal 1999 vs. $6.9 million in fiscal 1998).
The number of animals sold during fiscal 1999 decreased 13% under the
prior year due to decreased sales of feeder cattle during the year.
Direct and allocated costs remained unchanged from their levels a year ago
($6.3 million in fiscal 1999 and 1998).
Other Operations
________________
Revenues from oil royalties and land rentals were $923 thousand for fiscal
2000, compared to $711 thousand for fiscal 1999 and $505 thousand for fiscal
1998. This trend is commensurate with the increase in the land leased for
farming.
Returns from rock products and sand were $1.3 million for fiscal 2000,
$1.3 for 1999 and 1.2 million during 1998. Rock and sand supplies are
sufficient to meet current demand, and no major price changes have
occurred over the past 3 years.
Profits from the sale of sabal palms, for landscaping purposes, during
fiscal 2000 were $84 thousand compared to $136 thousand and $161 thousand
for fiscal years 1999 and 1998, respectively.
Direct and allocated expenses charged to the "Other" operations category
included general and administrative and other costs not charged directly to
the citrus, ranching, sugarcane divisions. These expenses totaled $4.4
million during fiscal 2000 compared to $3.5 million during fiscal 1999 and
to $3.4 million during fiscal 1998.
General Corporate
_________________
The Company is continuing its marketing and permitting activities for its
land which surrounds the Florida Gulf Coast University site.
The Company announced the formation of Agri-Insurance Company, Ltd. (Agri)
a wholly owned subsidiary, during July of 2000. The insurance company was
initially capitalized by transferring cash and approximately 3,000 acres of
the Lee County property (along with sales contracts totaling $8 million).
Through Agri, the Company expects to be able to underwrite previously
uninsurable risk related to catastrophic crop and other losses.
Additionally, the insurance company will have access to reinsurance
markets, otherwise inaccessible. While Agri underwrote a small policy
during August of 2000, it is expected to begin writing more significant
coverages before the end of December 2000.
In December of 1999, the Company entered into a contract to sell
approximately 2,500 acres for $50 million to Naples/Dallas Venture, Inc.
The agreement calls for closings to occur on 250 acres per year for 10
years. The first closing is expected during fiscal 2001.
During September of 1999, the Company announced a sale to Miromar
Development, Inc. of Montreal, Canada, of 1,270 acres of land surrounding
the University site in Lee County for $16.5 million. The contract called
for 25 percent of the purchase price to be paid at closing, with the
balance payable over the next four years. In August of 2000, Agri sold
another 488 acres to Miromar, also near the University, for $10.6 million.
In connection with the sale, Miromar agreed to pay off the $12.3 million
mortgage related to the September 1999 sale and pay 10% of the contract
price for their second purchase at closing. The balance is payable over
the next four years. The first sale generated a pre-tax gain of $13.4
million. The gain related to the second sale has only been recognized
to the extent that 10% of the purchase price has been collected net of
closing costs ($959 thousand). The remainder of the gain and related
mortgage will be recognized upon receipt of 20% of the contract price.
This is expected to occur during August of 2001.
In July of 1999, the Company entered into a contract to sell up to 402
acres near the University to Thomas B. Garlick, a Trustee of Florida
Land Trust 996 for approximately $15.5 million. The contract was
subsequently renegotiated, as provided for in the original agreement, and
calls for the sale of 44 acres for $5 million.
In February of 1999, the South Florida Water Management District acquired
approximately 12,728 acres of land in Hendry and Collier Counties, Florida,
from Alico, Inc. for $8.8 million. Upon completion of the sale, the
Company recognized a pre-tax gain of approximately $4.2 million on 7,142
of the acres. The remaining 5,586 acres were used in a like-kind exchange,
as part of a $22.5 million acquisition of approximately 7,680 acres in
Hendry County, Florida, that was completed during March of 1999. The
acquisition included producing citrus and sugarcane operations. The
transaction included like-kind exchanges totaling $6.1 million and debt
restructuring that resulted in a $19 million mortgage. (See Note 6 under
Notes to Consolidated Financial Statements.)
The Company announced an option agreement with REJ Group, Inc., of
Cleveland, Ohio, during May 1997. The option agreement permits the
acquisition of a minimum 150 acres and a maximum of 244 acres within
the 2,300 acres of University Village. The potential pre-tax gain to
Alico, if the option is exercised, would vary from $8.5 million to $24.5
million, depending on the time at which the option is exercised, and the
total number of acres selected.
Item 7(a). Quantitative and Qualitative Disclosure About Market Risk
_________________________________________________________________________
Our exposure to market rate risk for changes in interest rates relates
primarily to our investment portfolio. We do not have derivative financial
instruments in our investment portfolio. We place our investments with high
quality issuers and, by policy, limit the amount of credit exposure to any
one issuer. We are adverse to principal loss and ensure the safety and
preservation of our invested funds by limiting default, market and
reinvestment risk. We classify our cash equivalents and short-term
investments as fixed-rate if the rate of return on such instruments remains
fixed over their term. These fixed-rate investments include fixed-rate U.S.
government securities, municipal bonds, time deposits and certificates of
deposit. We classify our cash equivalents and short-term investments as
variable-rate if the rate of return on such investments varies based on the
change in a predetermined index or set of indices during their term. These
variable-rate investments primarily include money market accounts, mutual
funds and equities held at various securities brokers and investment banks.
The table below presents the amounts (in thousands) and related weighted
interest rates of our investment portfolio at August 31, 2000:
Average Interest Estimated
Marketable Securities and Rate Cost Fair Value
Short-term Investments (1) ________________ ______________ ______________
Fixed Rate 5.58% $ 3,187 $ 3,070
Variable Rate 4.89% $ 13,191 $ 15,167
(1) See definition in Notes 1 and 2 to our Notes to Consolidated Financial
Statements.
The aggregate fair value of our investment in debt instruments (net of mutual
funds of $1,251) as of August 31, 2000, by contractual maturity date, consisted
of the following:
Aggregate Fair
Values
______________
(in thousands)
Due in one year or less $ 50
Due between one and five years 253
Due between five and ten years 242
Due thereafter 1,293
______________
$ 1,838
______________
______________
Item 8. Financial Statements and Supplementary Data.
_____________________________________________________________
Independent Auditors' Report
____________________________
The Stockholders and Board of Directors
Alico, Inc.:
We have audited the consolidated balance sheets of Alico, Inc. and
subsidiary as of August 31, 2000 and 1999, and the related consolidated
statements of operations, stockholders' equity, and cash flows for each of
the years in the three-year period ended August 31, 2000. In connection with
our audits of the consolidated financial statements, we also have audited
the related consolidated financial statement schedules as listed in Item
14(a)(2) herein. These consolidated financial statements and financial
statements schedules are the responsibility of the Company's management.
Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Alico,
Inc. and subsidiary at August 31, 2000 and 1999, and the results of their
operations and their cash flows for each of the years in the three-year
period ended August 31, 2000 in conformity with accounting principles
generally accepted in the United States of America. Also in our opinion,
the related consolidated financial statement schedules, when considered
in relation to the consolidated financial statements taken as a whole,
present fairly, in all material respects, the information set forth therein.
KPMG LLP
(Signature)
Orlando, Florida
October 12, 2000
CONSOLIDATED BALANCE SHEETS
August 31,
2000 1999
_____________ ____________
ASSETS
Current assets:
Cash, including time deposits and other
cash investments of $179,311 in 2000
and $ 335,532 in 1999 $ 1,796,428 $ 740,829
Marketable securities available for
sale, at estimated fair value in
2000 and in 1999 (Note 2) 18,055,099 15,043,713
Accounts receivable ($7,717,325 in 2000 and
$6,084,064 in 1999 due from affiliate)
(Note 10) 11,954,721 8,030,863
Mortgages and notes receivable, current
portion (Note 3) 2,509,034 73,589
Inventories (Note 4) 21,915,039 20,547,215
Refundable income taxes 0 549,586
Other current assets 348,062 195,904
____________ ____________
Total current assets 56,578,383 45,181,699
____________ ____________
Other assets:
Land inventories 7,147,937 9,429,295
Mortgages and notes receivable, net of
current portion (Note 3) 7,334,579 394,203
Investments 959,252 946,145
____________ ____________
Total other assets 15,441,768 10,769,643
____________ ____________
Property, buildings and equipment (Note 5) 136,822,381 132,372,839
Less accumulated depreciation (31,966,492) (31,402,071)
____________ ____________
Net property, buildings and equipment 104,855,889 100,970,768
____________ ____________
Total assets $176,876,040 $156,922,110
____________ ____________
____________ ____________
See accompanying Notes to Consolidated Financial Statements.
August 31,
2000 1999
____________ ____________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,429,242 $ 2,571,579
Due to profit sharing plan (Note 8) 429,784 269,177
Accrued ad valorem taxes 1,780,807 1,997,834
Current portion of notes payable (Note 6) 1,298,890 1,322,033
Accrued expenses 988,011 683,848
Income taxes payable 4,169 517 0
Deferred income taxes (Note 9) 1,250,026 1,893,360
____________ ____________
Total current liabilities 12,346,277 8,737,831
Deferred revenue 9,540,000 -
Notes payable (Note 6) 40,302,855 45,630,912
Deferred income taxes (Note 9) 10,889,095 10,780,521
Deferred retirement benefits (Note 8) 252,809 377,487
____________ ____________
Total liabilities 73,331,036 65,526,751
____________ ____________
Stockholders' equity:
Preferred stock, no par value. Authorized
1,000,000 shares; issued, none - -
Common stock, $1 par value. Authorized
15,000,000 shares; issued and outstanding
7,027,827 in 2000 and 1999 7,027,827 7,027,827
Additional paid in capital 17,885 -
Accumulated other comprehensive income 1,159,445 1,029,953
Retained earnings 95,339,847 83,337,579
____________ ____________
Total stockholders' equity 103,545,004 91,395,359
____________ ____________
Total liabilities and stockholders'
equity $176,876,040 $156,922,110
____________ ____________
____________ ____________
See accompanying Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended August 31,
2000 1999 1998
___________ ___________ ___________
Revenue:
Citrus (including charges from
affiliate (Note 10) $28,172,057 $23,518,082 $26,621,714
Sugarcane 8,501,549 7,119,976 6,122,822
Ranch 6,062,224 6,270,988 6,882,149
Forest products 84,104 136,372 161,309
Rock and sand royalties 1,319,525 1,349,858 1,203,160
Oil lease and land rentals 923,535 710,731 505,426
Profit on sales of real estate 14,111,938 4,299,434 1,326,624
Interest and investment income 3,093,203 1,301,991 1,734,023
Other income 37,177 239,866 121,509
___________ ___________ ___________
Total revenue 62,305,312 44,947,296 44,678,736
___________ ___________ ___________
Costs and expenses:
Citrus production, harvesting and
marketing (including charges from
affiliate (Note 10) 21,196,521 21,077,169 17,945,016
Sugarcane production, harvesting
and hauling 6,962,366 4,483,250 4,514,424
Ranch 5,323,002 6,280,000 6,266,688
Real estate 813,016 452,029 451,912
Interest (Note 6) 3,019,819 2,085,065 1,116,688
Other, general and administrative
expenses 4,415,614 3,508,845 3,359,392
___________ ___________ ___________
Total costs and expenses 41,730,338 37,886,358 33,654,120
___________ ___________ ___________
Income before income taxes 20,574,974 7,060,938 11,024,616
Provision for income taxes (Note 9) 6,464,358 2,980,214 4,248,810
___________ ___________ ___________
Net Income 14,110,616 $ 4,080,724 $ 6,775,806
___________ ___________ ___________
___________ ___________ ___________
Weighted-average number of shares
outstanding 7,027,827 7,027,827 7,027,827
___________ ___________ ___________
___________ ___________ ___________
Per share amounts:
Basic and diluted earnings $ 2.01 $ .58 $ .96
Dividends $ .30 $ .50 $ .60
See accompanying Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Accumulated
Other
Common Stock Other Compre- Additional
Shares Retained hensive Paid-In-
Issued Amount Earnings Income Capital Total
_________ _________ _________ _______ ________ ________
Balances,
August 31, 1997 7,027,827 $7,027,827 $80,211,659 $913,059 $ - $88,152,545
_______________
Comprehensive income:
Net income for
the year ended
August 31, 1998 - - 6,775,806 - - 6,775,806
Unrealized losses on
securities, net of
taxes and reclassi-
fication adjustment - - - (744,714) - (744,714)
_________
Total comprehensive income: 6,031,092
Dividends paid - - (4,216,696) - - (4,216,696)
Stock based
compensation - - - - - -
_________ ________ __________ ________ ________ __________
Balances,
August 31, 1998 7,027,827 $7,027,827 $82,770,769 $168,345 $ - $89,966,941
_______________
Comprehensive income:
Net income for
the year ended
August 31, 1999 - - 4,080,724 - - 4,080,724
Unrealized gains on
securities, net of
taxes and reclassi-
fication adjustment - - - 861,608 - 861,608
__________
Total comprehensive income: 4,942,332
Dividends paid - - (3,513,914) - - (3,513,914)
Stock based
compensation - - - - - -
_________ _________ __________ ________ _______ _________
Balances,
August 31, 1999 7,027,827 $7,027,827 $83,337,579 $1,029,953 $ - $91,395,359
______________
Comprehensive income:
Net income for
the year ended
August 31, 2000 - - 14,110,616 - - 14,110,616
Unrealized gains on
securities, net of
taxes and reclassi-
fication adjustment - - - 129,492 - 129,492
__________
Total comprehensive income: 14,240,108
Dividends paid - - (2,108,348) - - (2,108,348)
Stock based
compensation - - - - 17,885 17,885
_________ _________ ___________ ________ __________ __________
Balances,
August 31, 2000 7,027,827 $7,027,827 $95,339,847 $1,159,445 $17,885 $103,545,004
_________ __________ __________ ________ _______ ___________
_________ __________ __________ ________ _______ ___________
Disclosure of reclassification amount: 2000 1999 1998
Unrealized holding gains (losses) ________ ________ ________
arising during the period $2,176,940 $ 824,144 $(86,587)
Less: reclassification adjustment
for gains (losses) included in net
income 2,047,448 (37,464) 658,127
_________ _________ ________
Net unrealized gains (losses)
on securities $ 129,492 $ 861,608 $(744,714)
_________ _________ _________
_________ _________ _________
See accompanying Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended August 31,
2000 1999 1998
___________ ___________ __________
Increase (Decrease) in Cash and Cash Investments:
Cash flows from operating activities:
Net income $14,110,616 $ 4,080,724 $ 6,775,806
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation and amortization 5,118,854 5,355,450 4,717,219
(Gain) loss on breeding herd sales 99,766 (316,700) (465,482)
Deferred income tax expense, net (613,097) (631,748) 714,257
Deferred retirement benefits (124,678) 374,167 ( 9,939)
Net gain on sale of marketable
securities (1,868,010) (11,736) (850,446)
(Gain) loss on sale of property
and equipment 1,232,535 33,934 (14,678)
Gain on real estate sales (13,967,688) (4,299,434) (1,239,031)
Stock options granted below fair
market value 17,885 - -
Cash provided by (used for) changes in:
Accounts receivable (3,930,668) 3,062,972 (3,636,898)
Inventories (2,214,387) (3,824,055) (1,924,894)
Income taxes refundable - (549,586) -
Other assets (201,767) 138,673 (65,114)
Accounts payable and accrued
expenses 161,824 1,893,878 479,862
Income taxes payable 4,719,103 (623,128) (311,767)
Deferred revenues - (345,763) 345,763
___________ ___________ _________
Net cash provided by operating
activities 2,540,288 4,337,648 4,514,658
___________ ___________ _________
Cash flows from investing activities:
Increase in land inventories (713,832) (591,338) (492,841)
Purchases of property and
equipment (9,995,159)(27,883,421)(12,186,976)
Proceeds from disposals of
property and equipment 522,091 457,584 510,432
Proceeds from sale of real
estate 17,089,222 4,466,917 1,393,170
Purchases of other assets (69,937) (39,165) (51,446)
Proceeds from the sale of
other assets 56,829 58,250 41,995
Purchases of marketable
securities (2,902,598) (3,461,686) (5,255,681)
Proceeds from sales of
marketable securities 1,967,397 2,140,932 3,933,517
Collection of mortgages and
notes receivable 20,846 146,677 875,503
___________ _________ ___________
Net cash provided by
(used for) investing
activities 5,974,859 (24,705,250)(11,232,327)
___________ __________ __________
Years Ended August 31,
2000 1999 1998
___________ ___________ ___________
Cash flows from financing activities:
Proceeds of bank loans 33,086,000 59,952,000 31,573,868
Repayment of loans (38,437,200) (36,237,923) (21,191,000)
Dividends paid (2,108,348) (3,513,914) (4,216,696)
___________ ___________ ___________
Net cash provided by
(used for) financing
activities (7,459,548) 20,200,163 6,166,172
___________ ___________ ___________
Net increase (decrease) in
cash and cash investments 1,055,599 (167,439) (551,497)
Cash and cash investments:
At beginning of year 740,829 908,268 1,459,765
___________ ___________ __________
At end of year $ 1,796,428 $ 740,829 $ 908,268
___________ ___________ ___________
___________ ___________ ___________
Supplemental disclosures of cash flow information:
Cash paid for interest,
net of amount capitalized $ 2,863,215 $ 2,186,855 $ 765,210
___________ ___________ ___________
___________ ___________ ___________
Cash paid for income taxes, $ 2,472,505 $ 3,142,286 $ 3,800,198
including related interest (Note 9)__________ ___________ ___________
___________ ___________ ___________
Noncash investing activities:
Fair value adjustments to
securities available for sale $ 208,175 $ 1,482,456 $(1,194,026)
___________ ___________ ___________
___________ ___________ ___________
Income tax effect related
to fair value adjustments $ 78,336 $ 557,848 $ (449,312)
___________ ___________ __________
___________ ___________ __________
See accompanying Notes to Consolidated Financial Statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended August 31, 2000, 1999 and 1998
(1) Summary of Significant Accounting Policies
__________________________________________
(a) Basis of Consolidated Financial Statement Presentation
______________________________________________________
The consolidated financial statements include the accounts of
Alico, Inc. (the Company) and its wholly owned subsidiaries,
Saddlebag Lake Resorts, Inc. (Saddlebag), and Agri-Insurance
Company, Ltd. (Agri), after elimination of all significant
intercompany balances and transactions.
(b) Revenue Recognition
___________________
Income from sales of citrus under marketing pool agreements is
recognized at the time the crop is harvested. The revenue is
based on the Company's estimates of the amounts to be received as
the sales of pooled products are completed. Fluctuation in the
market prices for citrus fruit has caused the Company to recognize
additional revenue from the prior year's crop totaling $1,839,642,
$159,748, and $2,656,629 during fiscal years 2000, 1999 and 1998,
respectively.
(c) Real Estate
___________
Real estate sales are recorded under the accrual method of
accounting. Retail land sales are not recognized until payments
received, including interest, aggregate 10 percent of the
contract sales price for residential real estate or 20 percent
for commercial real estate. At August 31, 2000, the Company
had deferred revenue of $9,540,000 related to commercial real
estate which was sold subject to a mortgage note receivable
(note 3). Sales are discounted to yield the market rate of
interest where the stated rate is less than the market rate.
The recorded valuation discounts are realized as the balances
due are collected. In the event of early liquidation, interest
is recognized on the simple interest method.
Tangible assets that are purchased during the period to aid in
the sale of the project as well as costs for services performed
to obtain regulatory approval of the sales are capitalized as
land and land improvements to the extent they are estimated to be
recoverable from the sale of the property. Land and land
improvement costs are allocated to individual parcels on a per
lot basis using the relative sales value method.
The Company has entered into an agreement with a real estate
consultant to assist in obtaining the necessary regulatory
approvals for the development and marketing of a tract of raw
land. The marketing costs under this agreement are being
expensed as incurred. The costs incurred to obtain the necessary
regulatory approvals are capitalized into land costs when paid.
These costs will be expensed as cost of sales when the underlying
real estate is sold.
(d) Marketable Securities Available for Sale
________________________________________
Marketable securities available for sale are carried at the
estimate fair value of the portfolio. Net unrealized investment
gains and losses are recorded net of related deferred taxes in a
separate component of stockholders' equity until realized.
Fair value for debt and equity investments is based on quoted
market prices at the reporting date for those or similar
investments. The cost of all marketable securities available for
sale are determined on the specific identification method.
(e) Inventories
___________
Beef cattle inventories are stated at the lower of cost or
market. The cost of the beef cattle inventory is based on the
accumulated cost of developing such animals for sale.
Unharvested crops are stated at the lower of cost or market.
The cost for unharvested crops is based on accumulated production
costs incurred during the eight month period from January 1
through August 31.
(f) Property, Buildings and Equipment
_________________________________
Property, buildings and equipment are stated at cost. Properties
acquired from the Company's predecessor corporation in exchange
for common stock issued in 1960, at the inception of the Company,
are stated on the basis of cost to the predecessor corporation.
Property acquired as part of a land exchange trust is valued at
the carrying value of the property transferred to the trust.
The breeding herd consists of purchased animals and animals
raised on the ranch. Purchased animals are stated at cost. The
cost of animals raised on the ranch is based on the accumulated
cost of developing such animals for productive use.
Depreciation for financial reporting purposes is computed on
straight-line and accelerated methods over the estimated useful
lives of the various classes of depreciable assets.
(g) Income Taxes
____________
The Company accounts for income taxes under the asset and
liability method. Under this method, deferred tax assets and
liabilities are recognized for the future tax consequences
attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date.
(h) Basic Earnings Per Share
________________________
Earnings per share has been computed by dividing net income by
the weighted average number of common shares outstanding during
the year. The Company has no dilutive securities.
(i) Cash Flows
__________
For purposes of the cash flows, cash and cash investments include
cash on hand and amounts due from financial institutions with an
original maturity of less than three months.
(j) Use of Estimates
________________
In preparing the consolidated financial statements, management is
required to make estimates and assumptions that effect the
reported amounts of assets and liabilities. Actual results could
differ significantly from those estimates. Although some
variability is inherent in these estimates, management believes
that the amounts provided are adequate.
(k) Financial Instruments and Accruals
__________________________________
The carrying amounts in the consolidated balance sheets for
accounts receivable, mortgage and notes receivable, accounts
payable and accrued expenses approximate fair value, because
of the immediate or short term maturity of these items.
The carrying amounts reported for the Company's long-term
debts approximate fair value.
l) Accumulated Other Comprehensive Income
______________________________________
As of September 1, 1998, the Company adopted Statement of
Financial Accounting Standards No. 130 (SFAS 130), "Reporting
Comprehensive Income", which was effective for fiscal years
beginning after December 15, 1997. SFAS 130 requires that all
items required to be recognized as components of comprehensive
income be reported in a financial statement with equal prominence
to other financial statements. Comprehensive income is defined as
the change in equity of a business enterprise during a period from
transactions and other events and circumstances from non-owner
sources. It includes both net income and other comprehensive
income.
Items included in other comprehensive income are classified
based on their nature. The total of other comprehensive income
for a period has been transferred to an equity account and
displayed as "accumulated other comprehensive income".
(m) Stock-Based Compensation
________________________
The Company applies Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees" (APB 25) for stock
options and other stock-based awards while disclosing pro forma
net income and net income per share as if the fair value method
had been applied in accordance with Statement of Financial
Accounting Standards No. 123,"Accounting for Stock-based
Compensation" (SFAS 123).
(n) Operating Segment
_________________
As of September 1, 1998, Alico adopted Statement of Financial
Accounting Standards No. 131 (SFAS 131). "Disclosures about
Segments of an Enterprise and Related Information", which was
effective for fiscal years beginning after December 31, 1997.
SFAS 131 establishes standards for reporting information about a
company's operating segments. It also establishes standards for
related disclosures about products and services, geographic areas
and major customers.
Alico, Inc. has four reportable segments: citrus, sugarcane,
ranch and general corporate. The commodities produced by these
segments are sold to wholesalers and processors who prepare the
products for consumption. The Company's operations are all located
in Florida.
(2) Marketable Securities Available for Sale
________________________________________
The Company has classified 100% of its investments in marketable
securities as available for sale and, as such, the securities are
carried at estimated fair value. Any unrealized gains and losses,
net of related deferred taxes, are recorded as a net amount in a
separate component of stockholders' equity until realized.
The cost and estimated fair values of marketable securities available
for sale at August 31, 2000 and 1999 (in thousands) were as follows:
2000 1999
____________________________ ____________________________
Gross Estimated Gross Estimated
Unrealized Fair Unrealized Fair
Cost Gains Losses Value Cost Gains Losses Value
_______ ____ ____ _______ ______ ______ ___ ________
Equity
securities $13,107 $2,260 $(284)$15,083 $10,900 $1,825 $(107) $12,618
Debt
securities 3,089 16 (133) 2,972 2,493 17 (84) 2,426
_______ ____ ____ _______ ______ ______ ___ ________
Marketable
securities
available
for sale $16,196 $2,276 $(417)$18,055 $13,393 $1,842 $(191) $15,044
_______ ____ ____ _______ ______ ______ ___ ________
_______ ____ ____ _______ ______ ______ ___ ________
At August 31, 2000, debt instruments (net of mutual funds of $1,250,864)
are collectible as follows:$50,004 within one year, $253,258 between one
and five years, $241,850 between five and ten years, and $1,293,247 there
after.
(3) Mortgage and Notes Receivable
____________________________
Mortgage and notes receivable arose from real estate sales. The
balances are as follows:
August 31, 2000 August 31, 1999
_______________ _______________
Mortgage notes receivable
on retail land sales $ 238,417 $ 246,660
Mortgage notes receivable
on bulk land sales 9,540,000 0
Other notes receivable 65,196 221,132
________________ _______________
Total mortgage and notes
receivable $ 9,843,613 $ 467,792
Less current portion 2,509,034 73,589
________________ _______________
Non-current portion $ 7,334,579 $ 394,203
________________ _______________
________________ _______________
In July 2000, the Company received a mortgage note in exchange for
land sold. The note totaled $9,540,000 and principal payments of
$2,385,000 are due annually on July 14, bearing interest at the
LIBOR, over the next four years.
(4) Inventories
___________
A summary of the Company's inventories (in thousands) at August 31,
2000 and 1999 is shown below:
2000 1999
_______ _______
Unharvested fruit crop on trees $ 9,160 $ 9,359
Unharvested sugarcane 5,096 3,639
Beef cattle 7,470 7,433
Sod 189 116
_______ _______
Total inventories $21,915 $20,547
_______ _______
_______ _______
Subject to prevailing market conditions, the Company may hedge a
portion of its beef inventory by entering into cattle futures
contracts to reduce exposure to changes in market prices. Any
gains or losses anticipated under these agreements were deferred,
with the cost of the related cattle being adjusted when the
contracts are settled. Effective September 1, 2000,gains and
losses under these agreements will be recognized as incurred
in accordance with SFAS 133, as further discussed in Note 11.
(5) Property, Buildings and Equipment
_________________________________
A summary of the Company's property, buildings and equipment (in
thousands) at August 31, 2000 and 1999 is shown below:
Estimated
2000 1999 Useful Lives
_______ _______ ____________
Breeding herd $13,713 $12,585 5-7 years
Buildings 3,571 3,396 5-40 years
Citrus trees 25,839 26,797 22-40 years
Sugarcane 7,651 5,998 4-15 years
Equipment and other
facilities 27,670 27,373 3-40 years
_______ _______
Total depreciable
properties 78,444 76,149
Less accumulated
depreciation 31,966 31,402
_______ _______
Net depreciable properties 46,478 44,747
Land and land improvements 58,378 56,224
_______ _______
Net property, buildings
and equipment $104,856 $100,971
_______ _______
_______ _______
The Company's citrus trees, fruit crop, unharvested sugarcane and
cattle are partially uninsured.
(6) Indebtedness
____________
The Company has financial agreements with commercial banks that permit
the Company to borrow up to $44 million. The financing agreements allow
the Company to borrow up to $41,000,000 which is due in 2002 and up to
$3,000,000 which is due on demand. The outstanding debt under these
agreements was $24.1 million and $28.1 million at August 31, 2000 and
1999, respectively. In March 1999, the Company mortgaged 7,680 acres
for $19 million in connection with a $22.5 million acquisition of
producing citrus and sugarcane operations. The total amount of long-
term debt under these agreements at August 31, 2000 and 1999 was
$40,302,855 and $45,630,912, respectively.
Maturities of the indebtedness of the Company over the next five years are
as follows: 2001- $1,298,890; 2002- $15,366,729; 2003- $1,303,559;
2004- $1,306,142; 2005- $1,308,905.
Interest cost expensed and capitalized (in thousands) during the three
years ended August 31, 2000, 1999 and 1998 was as follows:
2000 1999 1998
______ ______ ______
Interest expense $3,020 $2,085 $1,117
Interest capitalized 431 158 345
______ ______ ______
Total interest cost $3,451 $2,243 $1,462
______ ______ ______
______ ______ ______
(7) Stock Option Plan
__________
On November 3, 1998, the Company adopted the Alico, Inc., Incentive
Equity Plan (The Plan) pursuant to which the Board of Directors of the
Company may grant options, stock appreciation rights, and/or restricted
stock to certain directors and employees. The Plan authorizes grants of
shares or options to purchase up to 650,000 shares of authorized but
unissued common stock. Stock options have vesting schedules which
are at the discretion of the Board of Directors and determined on
the effective date of the grant.
Weighted
Weighted average
average remaining
exercise contractual
Shares price Life (in years)
______ _________ _______________
Balance outstanding,
August 31, 1998 - - -
Granted 34,700 $14.62 _______________
______ _________ _______________
Balance outstanding,
August 31, 1999 34,700 14.62 11
_______________
Granted 14,992 14.62 _______________
______ _________
Balance outstanding,
August 31, 2000 49,692 $14.62 10
______ _________ _______________
______ _________ _______________
On August 31, 2000 and 1999, there were 600,308 and 615,300 shares
available for grant, respectively.
The fair value of stock options granted was $15,667 in 2000 and
$41,640 in 1999 on the date of the grant using the Black Scholes
option-pricing model with the following weighted average assumptions:
2000 1999
____ ____
Volatility 7.26% 10.90%
Dividend paid 6.84% 2.05%
Risk-free interest rate 5.75% 4.50%
Expected life in years 1 2
All stock options granted, except as noted in the paragraph below,
have been granted to directors or employees with an exercise price
equal to the fair value of the common stock at the date of the grant.
The Company applies APB Opinion No. 25 for issuances to directors
and employees in accounting for its Plan. No compensation cost has
been recognized in the consolidated financial statements through
August 31, 1999, as options were issued at or above fair value.
On September 9, 1999, the Company granted 14,992 stock options with
an exercise price of $14.62 and a fair value of $15.813. The
Company recorded $17,885 of unearned compensation at the date of
the grant.
Had the Company determined compensation cost based on the fair value
at the grant date for its stock options under SFAS No. 123, the
Company's net income would have changed to the pro forma amounts
indicated below:
2000 1999
____ ____
Net income as reported $14,110,616 $4,080,724
Pro forma net income $14,112,834 $4,039,084
Basic earning per
share, as reported $ 2.01 $ .58
Pro forma basic earning
per share $ 2.01 $ .58
(8) Employee Benefit Plans
______________________
The Company has a profit sharing plan covering substantially all
employees. The plan was established under Internal Revenue Code
Section 401(k). Contributions made to the profit sharing plan were
$429,784, $269,177 and $296,368 for the years ended August 31,
2000, 1999 and 1998, respectively.
Additionally, the Company implemented a nonqualified defined benefit
retirement plan covering the officers and other key management
personnel of the Company. The plan is being funded by the purchase
of insurance contracts. The accrued pension liability for the
nonqualified defined benefit retirement plan at August 31, 2000
and 1999 was $249,488 and $374,167, respectively.
Pension expenses for the additional retirement benefits were
approximately $128,000, $213,000 and $345,000 for the years ended
August 31, 2000, 1999 and 1998, respectively.
(9) Income Taxes
____________
The provision for income taxes (in thousands) for the years ended
August 31, 2000, 1999 and 1998 is summarized as follows:
2000 1999 1998
______ ______ ______
Current:
Federal income tax $6,218 $3,369 $3,012
State income tax 860 305 521
______ ______ ______
7,078 3,674 3,533
______ ______ ______
Deferred:
Federal income tax (528) (593) 611
State income tax (86) (101) 105
______ ______ ______
(614) (694) 716
______ ______ ______
Total provision for
income taxes $6,464 $2,980 $4,249
______ ______ ______
______ ______ ______
Following is a reconciliation of the expected income tax expense
computed at the U.S. Federal statutory rate of 34% and the actual
income tax provision (in thousands) for the years ended August 31,
2000, 1999 and 1998:
2000 1999 1998
______ ______ ______
Expected income tax $6,995 $2,401 $3,748
Increase (decrease)
resulting from:
State income taxes, net
of federal benefit 516 135 400
Nontaxable interest
and dividends (127) (102) (92)
Internal Revenue Service
examinations (352) 984 -
Change in valuation
allowance - (539) -
Utilization of
charitable
contribution
carryforward (136) - -
Other reconciling
items, net (432) 101 193
______ ______ ______
Total provision for
income taxes $6,464 $2,980 $4,249
______ ______ ______
______ ______ ______
Some items of revenue and expense included in the statement of operations
may not be currently taxable or deductible on the income tax returns.
Therefore, income tax assets and liabilities are divided into a current
portion, which is the amount attributable to the current year's tax return,
and a deferred portion, which is the amount attributable to another year's
tax return. The revenue and expense items not currently taxable or
deductible are called temporary differences.
The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and deferred tax liabilities are
presented below (in thousands):
2000 1999
_______ _______
Deferred Tax Assets:
Contribution carryover $ - $(2,740)
Less valuation allowance - 2,188
_______ _______
Net contribution carryover - (552)
Pension (171) (193)
Prepaid sales commissions (875) (739)
Other (2,365) (2,167)
_______ _______
Total gross deferred
tax assets (3,411) (3,651)
_______ _______
Deferred Tax Liabilities:
Revenue recognized from
citrus and sugarcane 654 1,612
Property and equipment
(principally due to
depreciation and soil
and water deductions) 12,814 12,117
Mortgage notes receivable 27 27
Other 1,355 1,885
Unrealized gains on securities 700 684
_______ _______
Total gross deferred
tax liabilities 15,550 16,325
_______ _______
Net deferred income
tax liabilities $12,139 $12,674
_______ _______
_______ _______
Based on the Company's history of taxable earnings and its
expectations for the future, management has determined that its
taxable income will more likely that not be sufficient to
recognize fully all deferred tax assets.
(10) Related Party Transactions
__________________________
Citrus
______
Citrus revenues of $20,032,730, $18,188,136 and $24,018,251 were
recognized for a portion of citrus crops sold under a marketing
agreement with Ben Hill Griffin, Inc. (Griffin) for the years
ended August 31, 2000, 1999 and 1998, respectively. Griffin and
its subsidiaries is the owner of approximately 49.71 percent of
the Company's common stock. Accounts receivable, resulting from
citrus sales, include amounts due from Griffin totaling
$7,717,325 and $6,084,064 at August 31, 2000 and 1999,
respectively. These amounts represent estimated revenues to
be received periodically under pooling agreements as the sale of
pooled products is completed.
Harvesting, marketing, and processing costs, related to the citrus
sales noted above, totaled $7,531,491, $6,127,603, and $7,610,639
for the years ended August 31, 2000, 1999 and 1998, respectively.
In addition, Griffin provided the harvesting services for citrus
sold to unrelated processors. The aggregate cost of these services
was $1,987,660, $791,932 and $758,370 for the years ended August 31,
2000, 1999 and 1998, respectively. The accompanying consolidated
balance sheets include accounts payable to Griffin for citrus
production, harvesting and processing costs in the amount of
$616,430 and $880,283 at August 31, 2000 and 1999, respectively.
Other Transactions
__________________
The Company purchased fertilizer and other miscellaneous supplies,
services, and operating equipment from Griffin, on a competitive bid
basis, for use in its cattle, sugarcane, sod and citrus operations.
Such purchases totaled $7,371,356, $6,019,927 and $4,650,857 during
the years ended August 31, 2000, 1999 and 1998, respectively.
(11) Future Application of Accounting Standards
__________________________________________
In June 1998, the Financial Accounting Standards Board issued Statements
of Financial Accounting Standards No. 133 (SFAS 133), "Accounting for
Derivative Instruments and Hedging Activities". SFAS 133 requires that
an entity recognize all derivatives as either assets or liabilities in
the statement of financial position and measure those instruments at
fair value. Gains and losses resulting from changes in the values of
those derivatives would be accounted for depending on the use of the
derivative and whether it qualifies for hedge accounting. The key
criterion for hedge accounting is that the hedging relationship must
be highly effective in achieving offsetting changes in fair value or
cash flows.
In June 1999, the FASB issued SFAS 137 which amended the implementation
date for SFAS 133 to be effective for all fiscal years beginning after
June 15, 2000. Adoption of SFAS 133, effective September 1, 2000,
resulted in a transition adjustment of approximately $41,000.
(12) Business Segment Information
____________________________
The Company is primarily engaged in agricultural operations, which are
subject to risk, including market prices, weather conditions and
environmental concerns. The Company is also engaged in retail land
sales and, from time to time, sells real estate considered surplus
to its operating needs. Information about the Company's operations
(in thousands) for the years ended August 31, 2000, 1999 and 1998
is summarized as follows:
2000 1999 1998
________ ________ ________
Revenues:
Agriculture:
Citrus $ 28,172 $ 23,518 $ 26,622
Sugarcane 8,501 7,120 6,123
Ranch 6,062 6,271 6,882
________ ________ ________
Total agriculture 42,735 36,909 39,627
Real estate 14,112 4,299 1,327
General corporate 5,458 3,739 3,725
________ ________ ________
Consolidated totals $ 62,305 $ 44,947 $ 44,679
________ ________ ________
________ ________ ________
Operating income (loss):
Agriculture:
Citrus $ 6,975 $ 2,441 $ 8,677
Sugarcane 1,539 2,636 1,608
Ranch 739 (8) 615
________ ________ ________
Total agriculture 9,253 5,069 10,900
Real estate 13,299 3,847 875
General corporate 5,458 3,739 3,725
________ ________ ________
Total operating income 28,010 12,655 15,500
Interest expense (3,020) (2,085) (1,116)
General corporate expenses (4,415) (3,509) (3,359)
________ ________ ________
Income before
income taxes $ 20,575 $ 7,061 $ 11,025
________ ________ ________
________ ________ ________
2000 1999 1998
________ ________ ________
Capital expenditures:
Agriculture:
Citrus $ 1,331 $ 9,674 $ 1,071
Sugarcane 5,861 13,995 8,846
Ranch 1,950 2,344 1,864
Sod 80 16 7
Farm lands 8 64 177
Heavy equipment 708 1,015 177
________ ________ ________
Total agriculture 9,938 27,108 12,142
General corporate 57 775 45
________ ________ ________
Consolidated totals $ 9,995 $ 27,883 $ 12,187
________ ________ ________
________ ________ ________
Depreciation, depletion and amortization:
Agriculture:
Citrus $ 2,417 $ 2,273 $ 1,944
Sugarcane 2,235 1,460 1,010
Ranch (66) 1,174 1,346
Sod 11 14 17
Farm lands 39 38 37
Heavy equipment 396 319 293
________ ________ ________
Total agriculture 5,032 5,278 4,647
General corporate 87 77 70
________ ________ ________
Consolidated totals $ 5,119 $ 5,355 $ 4,717
________ ________ ________
________ ________ ________
Identifiable assets:
Agriculture:
Citrus $ 56,173 $ 55,156 $ 48,052
Sugarcane 50,784 45,629 31,889
Ranch 21,765 19,306 17,295
Sod 474 323 473
Farm lands 1,697 1,728 1,702
Heavy equipment 1,989 1,835 1,214
________ ________ ________
Total agriculture 132,882 123,977 100,625
Real estate 16,992 9,897 9,452
General corporate 27,002 23,048 20,477
________ ________ ________
Consolidated totals $176,876 $156,922 $130,554
________ ________ ________
________ ________ ________
Identifiable assets represents assets on hand at year-end which are
allocable to a particular segment either by their direct use or by
allocation when used jointly by two or more segments. General corporate
assets consist principally of cash, temporary investments, mortgage notes
receivable and property and equipment used in general corporate business.
SELECTED QUARTERLY FINANCIAL DATA
(UNAUDITED)
Summarized quarterly financial data (in thousands except for per share
amounts) for the years ended August 31, 2000 and August 31, 1999, is as
follows:
Quarters Ended
November 30, Feb. 28, May 31, August 31,
1999 1998 2000 1999 2000 1999 2000 1999
_______ _______ _______ _______ _______ _______ _______ ______
Revenue:
Citrus $ 1,703 $ 1,587 $ 9,170 $ 8,535 $10,118 $12,953 $ 7,182 $ 443
Sugarcane 1,451 1,194 5,021 2,221 2,310 3,585 (281) 121
Ranch 2,987 2,647 582 1,060 1,668 1,852 825 711
Property
sales 12,860 0 132 4,293 2 (1) 1,118 7
Interest 770 196 1,566 240 912 397 (154) 469
Other
revenues 794 552 550 595 517 664 502 627
_______ _______ _______ _______ _______ _______ _______ ______
Total
revenue 20,565 6,176 17,021 16,944 15,527 19,450 9,192 2,378
_______ _______ _______ _______ _______ _______ _______ ______
Costs and expenses:
Citrus 1,075 1,275 8,527 6,306 8,818 12,221 2,776 1,274
Sugarcane 1,423 876 4,452 1,705 1,034 2,065 54 (163)
Ranch 2,900 2,787 524 1,001 1,428 1,816 472 676
Interest 632 409 777 1,350 663 (354) 947 681
Other 765 820 845 706 1,050 895 2,568 1,541
______ ______ ______ ______ ______ _____ _____ _____
Total costs
and ex-
penses 6,795 6,167 15,125 11,068 12,993 16,643 6,817 4,009
______ ______ ______ ______ ______ _____ _____ _____
Income be-
fore income
taxes 13,770 9 1,896 5,876 2,534 2,807 2,375 (1,631)
Provision for
income
taxes 5,158 (18) 644 2,175 1,064 1,637 (402) (814)
______ ______ ______ ______ ______ ______ ______ _____
Net income $8,612 $ 27 $1,252 $3,701 $1,470 $1,170 $2,777 $ (817)
______ ______ ______ ______ ______ ______ ______ _____
______ ______ ______ ______ ______ ______ ______ _____
Basic earnings
per share $1.23 $.004 $ .18 $ .53 $ .21 $ .17 $ .39 $(.12)
______ ______ ______ ______ ______ ______ ______ _____
______ ______ ______ ______ ______ ______ ______ _____
The weighted average number of shares outstanding totaled 7,027,827 shares
during each of the periods presented above.
Item 9. Changes in & Disagreements with Accountants on
Accounting and Financial Disclosure.
_______________________________________________________________________
None
PART III
________
Item 10. Directors and Executive Officers of the Registrant.
_____________________________________________________________________
For information with respect to the executive officers of the
registrant, see "Executive Officers of the Registrant" at the end
of Part I of this report.
The information called for regarding directors is incorporated by
reference to the Company's Proxy Statement dated November 15, 2000.
Item 11. Executive Compensation.
_________________________________________
Information called for by Items 11 is incorporated by
reference to the Company's Proxy Statement dated November 15, 2000.
As disclosed in the Proxy Statement, on September 9, 1999, the
Company granted options for 14,992 shares of the Company's common
stock to its employees pursuant to the Company's Incentive Equity
Plan, 8,376 of which were awarded to the Company's two most highest
compensated employees. The options had an exercise price of $14.62
and fair market value of $15.813 at the time of the grant.
Item 12. Security Ownership of Certain Beneficial
Owners and Management.
______________________________________________________________________
Information called for by Items 12 is incorporated by
reference to the Company's Proxy Statement dated November 15, 2000.
Item 13. Certain Relationships and Related Transactions.
_________________________________________________________________
Information called for by Items 13 is incorporated by
reference to the Company's Proxy Statement dated November 15, 2000.
PART IV
_______
Item 14. Exhibits, Financial Statement Schedules and Reports
on Form 8-K.
____________________________________________________
(a)1. Financial Statements:
____________________
Included in Part II, Item 8 of this Report
Report of Independent Auditors'
Consolidated Balance Sheets - August 31, 2000 and 1999
Consolidated Statements of Operations - For the Years Ended
August 31, 2000, 1999 and 1998
Consolidated Statements of Stockholders' Equity - For the
Years Ended August 31, 2000, 1999 and 1998
Consolidated Statements of Cash Flows - For the Years Ended
August 31, 2000, 1999 and 1998
(a)2. Financial Statement Schedules:
_____________________________
Selected Quarterly Financial Data - For the Years Ended
August 31, 2000 and 1999 - Included in Part II, Item 8
Schedule I - Marketable Securities and Other Investments -
at August 31, 2000
Schedule V - Property, Plant and Equipment - For the Years
Ended August 31, 2000, 1999 and 1998
Schedule VI - Reserves for Depreciation, Depletion and
Amortization of Property, Plant and Equipment - For the
Years Ended August 31, 2000, 1999 and 1998
Schedule IX - Supplementary Income Statement Information -
For the Years Ended August 31, 2000, 1999 and 1998
All other schedules not listed above are not submitted because they are not
applicable or not required or because the required information is included
in the financial statements or notes thereto.
(a)3. Exhibits:
________
(3) Articles of Incorporation: *
Schedule I - Restated Certificate of Incorporation,
Dated February 17, 1972
Schedule II - Certificate of Amendment to Certificate
of Incorporation, Dated January 14, 1974
Schedule III - Amendment to Articles of Incorporation,
Dated January 14, 1987
Schedule IV - Amendment to Articles of Incorporation,
Dated December 27, 1988
Schedule V - By-Laws of Alico, Inc.,
Amended to September 13, 1994
(4) Instruments Defining the Rights of Security Holders,
Including Indentures - Not Applicable
(9) Voting Trust Agreement - Not Applicable
(10) Material Contracts - Citrus Processing and Marketing
Agreement with Ben Hill Griffin, Inc., dated November 2,
1983, a Continuing Contract. *
(11) Statement - Computation of Per Share Earnings
(12) Statement - Computation of Ratios
(18) Change in Accounting Principles - Not Applicable
(19) Annual Report to Security Holders - By Reference
(21) Subsidiaries of the Registrant - Not Applicable
(22) Published Report Regarding Matters Submitted to Vote of
Security Holders - Not Applicable
(23) Consents of Experts and Counsel - Not Applicable
(24) Power of Attorney - Not Applicable
(28) Information From Reports Furnished to State Insurance
Regulatory Authorities - Not Applicable
(99) Additional Exhibits - None
(b)3. Reports on Form 8-K:
___________________
Form 8-K dated December 9, 1999 regarding re-election of
Directors and election of Officers.
Form 8-K dated July 13, 2000 regarding disposition of land.
Form 8-K dated November 3, 2000 regarding disposition of land.
* Material has been filed with Securities and Exchange Commission and NASDAQ
and may be obtained upon request.
ALICO, INC.
SCHEDULE I
Marketable Securities and Other Investments
August 31, 2000
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
________ ________ ________ ________ ________
Amount of Which
Each Portfolio
of Equity Secu-
Number of Market rity Issues and
Shares or Value of Each Other Se-
Name of Issuer Units-Principal Cost of Each Issue curity Issue
and Title of Amounts of Bonds Each at Balance Carried in the
Each Issue and Notes Issue Sheet Date Balance Sheet
______________ _______________ ___________ ____________ ___________
Municipal Bonds $ 691,512 $ 691,512 $ 707,094 $ 707,094
Mutual Funds $8,765,618 8,765,618 10,688,283 10,688,283
Preferred Stocks 135,500 3,429,589 3,145,272 3,145,272
Common Stocks 81,106 2,162,555 2,469,292 2,469,292
Other
Investments $1,146,847 1,146,847 1,045,158 1,045,158
___________ ___________ ___________
Total: $16,196,121 $18,055,099 $18,055,099
___________ ___________ ___________
___________ ___________ ___________
ALICO, INC.
SCHEDULE V
PROPERTY, PLANT AND EQUIPMENT
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ _________ _________ ________ ________ ________
Other Changes
Balance Retire- Debit and/or Balance
Beginning Additions ments Credit- at Close
Description of Period at Cost or Sales Describe of Period
___________ _________ _________ _________ ___________ __________
For Year Ended August 31, 2000
______________________________
Land $32,446,339 $ 15,821 $ 66,406 $ $ 32,395,754
Roads 1,415,260 741,192 2,156,452
Agricultural Land
Preparation 9,906 9,906
Forest Improvements 100,026 100,026
Pasture
Improvements 2,988,469 24,438 3,012,907
Buildings 3,378,101 293,695 118,406 3,553,390
Feeding and Watering
Facilities for
Cattle Herd 17,454 5,541 22,995
Water Control
Facilities 5,337 5,337
Fences 266,909 24,402 14,209 277,102
Cattle Pens 155,652 31,157 186,809
Citrus Groves,
Including Irrigation
Systems 46,184,668 849,070 2,706,198 44,327,540
Equipment 8,159,823 1,555,882 759,411 8,956,294
Breeding Herd 12,584,592 2,619,785 1,490,988 13,713,389
Sugarcane-Land Prep-
aration, Etc. 22,634,545 4,736,794 1,379,895 25,991,444
Sod Land-Prep-
aration, Etc. 191,441 79,278 270,719
Farm Land Prep-
Aration, Etc. 1,834,317 8,000 1,842,317
___________ ___________ __________ _______ ____________
$132,372,839 $10,985,055 $6,535,513 $ $136,822,381
___________ ___________ __________ _______ ____________
___________ ___________ __________ _______ ____________
ALICO, INC.
SCHEDULE V
PROPERTY, PLANT AND EQUIPMENT
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ _________ _________ ________ ________ ________
Other Changes
Balance Retire- Debit and/or Balance
Beginning Additions ments Credit- at Close
Description of Period at Cost or Sales Describe of Period
___________ _________ _________ _________ ___________ __________
For Year Ended August 31, 1999
______________________________
Land $22,867,648 $9,746,174 $ 167,483 $ $32,446,339
Roads 957,826 457,434 1,415,260
Agricultural Land
Preparation 9,906 9,906
Forest Improvements 100,026 100,026
Pasture
Improvements 2,988,469 2,988,469
Buildings 2,994,000 384,101 3,378,101
Feeding and Watering
Facilities for
Cattle Herd 30,317 12,863 17,454
Water Control
Facilities 5,337 5,337
Fences 298,011 1,252 32,354 266,909
Cattle Pens 134,955 20,697 155,652
Citrus Groves,
Including Irrigation
Systems 39,023,959 7,160,709 46,184,668
Equipment 7,288,254 1,830,423 958,854 8,159,823
Breeding Herd 12,588,424 1,796,519 1,800,351 12,584,592
Sugarcane-Land Prep-
aration, Etc. 15,822,850 7,338,020 526,325 22,634,545
Sod-Land Prep-
aration, Etc. 184,916 6,525 191,441
Farm Land Prep-
aration 1,769,853 64,464 1,834,317
___________ __________ __________ _______ ____________
$107,064,751 $28,806,318 $3,498,230 $ $132,372,839
___________ __________ __________ _______ ____________
___________ __________ __________ _______ ____________
ALICO, INC.
SCHEDULE V
PROPERTY, PLANT AND EQUIPMENT
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ _________ _________ ________ ________ ________
Other Changes
Balance Retire- Debit and/or Balance
Beginning Additions ments Credit- at Close
Description of Period at Cost or Sales Describe of Period
___________ _________ _________ _________ ___________ __________
For the Year Ended August 31, 1998
__________________________________
Land $14,368,962 $8,562,616 $ 92,516 $ 28,586* $22,867,648
Roads 953,181 4,645 957,826
Agricultural Land
Preparation 9,906 9,906
Forest Improvements 100,026 100,026
Pasture Improve-
ments 2,956,774 31,695 2,988,469
Buildings 2,973,486 122,727 102,213 2,994,000
Feeding and Watering
Facilities for
Cattle Herd 34,167 3,850 30,317
Water Control
Facilities 5,337 5,337
Fences 292,197 32,631 26,817 298,011
Cattle Pens 134,955 134,955
Citrus Groves,
Including Irri-
gation Systems 38,422,614 800,602 199,257 39,023,959
Equipment 7,280,577 531,520 523,843 7,288,254
Breeding Herd 12,126,689 1,653,306 1,191,571 12,588,424
Sugarcane-Land
Prep.,Etc. 15,277,301 888,486 342,937 15,822,850
Sod-Land Prep-
aration,Etc. 180,938 3,978 184,916
Farm Land Prep-
aration 1,592,330 177,523 1,769,853
___________ __________ __________ _________ ___________
$96,709,440 $12,809,729 $2,483,004 $ 28,586 $107,064,751
___________ __________ __________ _________ ___________
___________ __________ __________ _________ ___________
* Reclassification from other assets.
(/TABLE>
ALICO, INC.
SCHEDULE VI
Reserves for Depreciation, Depletion and Amortization
of Property, Plant and Equipment
_____________________________________________________
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ __________ __________ __________ ________ ________
Additions Other
Balance Charged To Changes Balance
Beginning Profit & Loss Retire- Add(Deduct) at
Description of Period of Income ments Desccribe Close Of
___________ _________ ____________ __________ _________ ________
For Year Ended August 31, 2000
______________________________
Buildings $ 1,407,257 $ 153,267 $ 58,124 $ $ 1,502,400
Feeding and Watering
Facilities for
Cattle Herd 8,496 571 9,067
Water Control
Facilities 0 0 0 0
Fences 117,083 26,647 14,209 129,521
Cattle Pens 85,215 13,797 99,012
Citrus Groves,
Including Irriga-
tion Systems 13,213,300 1,986,634 1,484,300 13,715,634
Equipment 4,793,420 989,713 694,620 5,088,513
Breeding Herd 6,276,893 (220,982) 923,286 5,132,625
Roads 113,385 59,667 173,052
Sugarcane Lane Prep-
aration, Etc. 5,263,793 2,066,746 1,379,894 5,950,645
Sod Land Prepara-
tion, Etc. 11,414 4,652 16,066
Farm Land Preparation 111,815 38,142 149,957
___________ __________ __________ ____ ___________
$31,402,071 $5,118,854 $4,554,433 $ 0 $31,966,492
___________ __________ __________ ____ ___________
___________ __________ __________ ____ ___________
ALICO, INC.
SCHEDULE VI
Reserves for Depreciation, Depletion and Amortization
Property, Plant and Equipment
_____________________________________________________
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ __________ __________ __________ ________ ________
Additions Other
Balance Charged To Changes Balance
Beginning Profit & Loss Retire- Add(Deduct) at
Description of Period of Income ments Desccribe Close Of
___________ _________ ____________ __________ _________ ________
For Year Ended August 31, 1999
______________________________
Buildings $ 1,268,644 $ 138,613 $ $ $ 1,407,257
Feeding and Watering
Facilities for
Cattle Herd 21,006 353 12,863 8,496
Water Control
Facilities 0 0 0 0
Fences 122,850 26,587 32,354 117,083
Cattle Pens 71,264 13,951 85,215
Citrus Groves,
Including Irriga-
tion Systems 11,299,211 1,914,089 13,213,300
Equipment 4,881,745 809,596 897,921 4,793,420
Breeding Herd 6,939,132 1,024,231 1,686,470 6,276,893
Roads 71,900 41,485 113,385
Sugarcane-Land Prep-
aration, Etc. 4,425,063 1,344,916 506,186 5,263,793
Sod-Land Prepara-
tion, Etc. 7,499 3,915 11,414
Farm Land Preparation 74,102 37,713 111,815
___________ __________ __________ ____ ___________
$29,182,416 $5,355,449 $3,135,794 $ 0 $31,402,071
___________ __________ __________ ____ ___________
___________ __________ __________ ____ ___________
ALICO, INC.
SCHEDULE VI
Reserves for Depreciation, Depletion and Amortization
Property, Plant and Equipment
_____________________________________________________
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ __________ __________ __________ ________ ________
Additions Other
Balance Charged To Changes Balance
Beginning Profit & Loss Retire- Add(Deduct) at
Description of Period of Income ments Desccribe Close Of
___________ _________ ____________ __________ _________ ________
For the Year Ended August 31, 1998
__________________________________
Buildings $ 1,221,902 $ 135,690 $ 88,948 $ $ 1,268,644
Feeding and Watering
Facilities for
Cattle Herd 24,059 797 3,850 21,006
Water Control
Facilities 0 0 0 0
Fences 124,017 25,650 26,817 122,850
Cattle Pens 57,313 13,951 71,264
Citrus Groves,
Including Irrigation
Systems 9,894,285 1,604,182 199,256 11,299,211
Equipment 4,646,481 747,006 511,742 4,881,745
Breeding Herd 6,861,549 1,202,626 1,125,043 6,939,132
Roads 32,097 39,803 71,900
Sugarcane-Land
Prep.,Etc. 3,860,569 907,431 342,937 4,425,063
Sod-Land Prep-
aration, Etc. 3,957 3,542 7,499
Farm Land
Preparation 37,561 36,541 74,102
___________ __________ __________ _______ ___________
$26,763,790 $4,717,219 $2,298,593 $ 0 $29,182,416
___________ __________ __________ _______ ___________
___________ __________ __________ _______ ___________
ALICO, INC.
SCHEDULE IX
____________
SUPPLEMENTARY INCOME STATEMENT INFORMATION
__________________________________________
_____________________________________________________________________________
COLUMN A COLUMN B
_____________________________________________________________________________
Charged to Costs and Expenses
_____________________________
Years Ended August 31,
______________________
Item 2000 1999 1998
____ ____ ____ ____
1. Maintenance and repairs $1,294,131 $1,094,379 $1,025,739
2. Taxes, other than payroll
and income taxes 2,130,749 2,427,161 1,805,322
EXHIBIT 11
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of August 31, 2000:
Number of shares outstanding at August 31, 2000 7,027,827
_________
_________
Number of shares outstanding at August 31, 1999 7,027,827
_________
_________
Weighted Average 9/1/99 - 8/31/00 7,027,827
_________
_________
EXHIBIT 12
ALICO, INC.
Computation of Ratios:
2000 Current Assets $56,578,383
Current Liabilities 12,346,277
56,578,383 divided by 12,346,277 = 4.58:1
1999 Current Assets $45,181,699
Current Liabilities 8,737,831
45,181,699 divided by 8,737,831 = 5.17:1
Pursuant to the requirements of Section 13 of the Securities Exchange Act
of 1934, as amended, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
ALICO, INC.
(Registrant)
November 15, 2000 Ben Hill Griffin, III
Date Chairman, Chief Executive
Officer and Director
(Signature)
November 15, 2000 W. Bernard Lester
Date President, Chief Operating
Officer and Director
(Signature)
November 15, 2000 L. Craig Simmons
Date Vice President and
Chief Financial Officer
(Signature)
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated:
Richard C. Ackert Ben Hill Griffin, IV
Director Director
(Signature) (Signature)
K. E. Hartsaw Thomas E. Oakley
Director Director
(Signature) (Signature)
William L. Barton
Director
(Signature)
Walker E. Blount, Jr.
Director
(Signature)
November 15, 2000
Date