Back to GetFilings.com
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, 1995.
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 33935
________________________________________ __________
(Address of principal executive offices) (Zip Code)
(941)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 20, 1995 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 nonaffiliates was
approximately $60,856,775.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's Annual Report and Proxy Statement dated
November 10, 1995 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 164,581 acres of land located in Collier, Hendry, Lee and Polk
Counties. (See table on Page 5 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 73 to 93 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 10,006 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 5,000 acres in production during the 1995 fiscal year consisted of
1,110 acres planted in the fall of 1989, 863 acres planted in 1990, 22
acres planted in 1991, 2,042 acres planted in 1992 and 1,003 acres planted
in 1993.
The Company continued to expand agriculture activities during the 1995
fiscal year, continuing development of a farm leasing project and
additional citrus acreage.
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 20 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 11 of Notes to Consolidated
Financial Statements and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" incorporated in this document.
Subsidiary Operations
_____________________
The Company's wholly owned subsidiary, Saddlebag Lake Resorts, Inc. (the
"Subsidiary"), is only active in the subdividing, development and sale of
real estate. The financial results of the operation of this subsidiary are
consolidated with those of the Company. (See Note 1 of Notes to Financial
Statements.)
Contributions by the Subsidiary to the net income of the Company, during
the past five years, have ranged from 0 to 1 percent. The Subsidiary has
two subdivisions near Frostproof, Florida which have been developed and are
on the market. Approximately 68% of the lots have been sold.
Citrus
______
Approximately 7,694 acres of citrus were harvested during the 1995 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, 1995, approximately 88% of the Company's
fruit crop was marketed under this agreement, the same percentage as in
1993/94. The Company expects that the majority of the 1995/96 crop will be
marketed under the same terms. In addition, Ben Hill Griffin, Inc.
provides harvesting services to the Company for citrus sold to unrelated
processors. These sales accounted for the remaining 12% 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 19,000 cows, bulls and replacement heifers. Approximately
31% of the herd are from one to five years old, while the remaining 69% are
six and older. The Company primarily sells to contract cattle buyers. The
Company also sells cattle through local livestock auction markets and to
packing and processing plants located in the area. 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 up to 50% of its beef inventory by
entering into cattle futures contracts to reduce exposure to changes in
market prices. During 1993, the Company began a program of retaining
ownership of calves shipped to Midwest feedlots. This program results in \
increased sales prices per head as weight is added in the feedlot.
Sugarcane
_________
The Company had 5,000 acres and 5,626 acres of sugarcane in production
during the 1994/95 and 1993/94 fiscal year, respectively. The 1994/95 and
1994/93 crops yielded approximately 186,000 and 230,000 gross tons,
respectively.
Forest Products
_______________
Approximately 6% of the Company's properties are classified as timberlands.
The principal forest products sold by the Company, prior to the 1992/93
fiscal year, were pulpwood and sabal palms. These products were sold to
a paper company and various landscaping companies, respectively. During
the 1994/95 fiscal year, revenues consisted almost entirely of sabal palms
sold to landscaping companies. 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 other 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 it's properties
for the purpose of oil and mineral exploration. Currently, there are no
leases in effect.
Twenty-three 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 one average producer, still producing.
Mining Operations: Rock and Sand
_________________________________
The Company leases 7,927 acres in Lee County, Florida to Florida Rock
Industries, Inc. of Jacksonville, 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, 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 1995 the Company had a total of 138 full-time
employees classified as follows: Citrus 60; Ranch 24; Sugarcane 10;
Facilities Maintenance Support 29; General and Administrative 15. 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. Cattle sales usually occur in the
first and fourth quarters of the fiscal year, with the majority occurring
in the fourth quarter. Sugarcane is harvested during the first, second and
third quarters. Other segments of the Company's business such as its
timber, mining and leasing operations, tend to be more successive than
seasonal in nature.
Item 2. Properties.
____________________________
At August 31, 1995, the Company owned a total of 164,581 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 550 8,870 447 -- 3,148 -- -- 4 13,019
Lee 3,731 1,088 -- -- -- -- 1,460 3,646 9,925
Hendry 3,823 80,609 24,096 373 2,299 6,831 5,106 3,636 126,773
Collier 1,902 5,371 1,212 -- 4,041 -- -- 2,338 14,864
______ _______ ______ ___ _____ _____ _____ _____ _______
Totals 10,006 95,938 25,755 373 9,488 6,831 6,566 9,624 164,581
______ _______ ______ ___ _____ _____ _____ _____ _______
______ _______ ______ ___ _____ _____ _____ _____ _______
Of the above lands, the Company utilizes 25,308 acres of improved pasture
plus approximately 60,000 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 1,173 acres and fractional subsurface rights to 18,882
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.
In October 1992 the Company entered into a contract, with the Board of
Regents of the State of Florida, committing to a donation of 975 acres of
land and other items, in connection with a new state university. In
addition to the contribution of land, the following items and amounts were
also committed: design and planning - $200,000; academic chairs -
$1,200,000; road construction - $2,400,000.
Governmental approvals have been obtained to develop approximately 2,500
acres surrounding the University site. However, the development schedule
of the University is subject to the appropriation of funds by the
legislature. Currently, construction is expected to begin in January 1996
with the opening to occur in the fall of 1997.
Item 3. Legal Proceedings.
___________________________________
There are no pending legal proceedings involving the Company.
Item 4. Submission of Matters to a Vote of Security Holders.
_____________________________________________________________________
There were no matters submitted to a vote of security holders during the
1995 fiscal year.
Executive Officers of the Company
_________________________________
Pursuant to General Instruction G(3) 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, 1995.
Election of Executive Officer 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),
President and Chief Executive Office (since
January 1988) and Director (since March 1973) 53
W. Bernard Lester Executive Vice President 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 56
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 43
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 1991 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
1992.
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, 1995 and 1994 are presented
below:
1995 1994
Bid Price Bid Price
_________ _________
High Low High Low
First Quarter 18 1/4 16 1/2 19 3/4 17 1/4
Second Quarter 17 5/16 15 1/2 22 3/4 18 1/2
Third Quarter 17 1/2 15 21 1/4 17
Fourth Quarter 20 15 1/2 18 1/4 16
Approximate Number of Holders of Common Stock
_____________________________________________
As of October 20, 1995 there were approximately 1,084 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 23, 1992 November 12, 1992 $.15
October 22, 1993 November 12, 1993 $.15
October 21, 1994 November 10, 1994 $.25
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 1995 1994 1993 1992 1991
________ ________ ________ ________ ________
(In Thousands Except Per Share Amounts)
Revenues $ 39,571 $ 38,502 $ 28,563 $ 32,284 $ 28,185
Costs and Expenses 25,105 26,799 24,103 24,930 19,688
Income Taxes 5,525 3,975 1,503 2,455 2,803
Cumulative Effect of
Accounting Change - - 2,337 - -
Net Income 8,941 7,728 5,294 4,899 5,694
Average Number of
Share Outstanding 7,028 7,028 7,028 7,028 7,028
Net Income per Share 1.27 1.10 .75 .70 .81
Cash Dividend Paid per Share .25 .15 .15 .15 .15
Current Assets 31,736 28,341 23,597 22,572 21,912
Total Assets 109,007 102,185 90,516 85,632 80,367
Current Liabilities 5,656 5,660 2,936 4,748 3,358
Ratio-Current Assets
to Current Liabilities 5.61:1 5.01:1 8.04:1 4.75:1 6.53:1
Working Capital 26,080 22,680 20,661 17,824 18,554
Long-Term Obligations 27,945 28,568 26,296 23,840 23,810
Total Liabilities 33,601 34,228 29,232 28,588 27,168
Stockholders' Equity 75,406 67,957 61,283 57,043 53,199
Item 7. Management's Discussion and Analysis of Financial
__________________________________________________________________
Condition and Results of Operations.
____________________________________
Liquidity and Capital Resources
_______________________________
The Company had cash and marketable securities of $10.6 million at August
31, 1995 compared with $9.7 million at August 31, 1994. Working capital
also increased, from $22.7 million at August 31, 1994 to $26.1 million at
August 31, 1995. Reinvestment of interest and dividends earned on cash and
marketable securities increased the Company's position in these assets.
In addition, the retained ownership of feeder cattle (as explained in the
Ranching Operations section) has resulted in an increase in inventories at
year end ($13.1 million vs $10.7 million at August 31, 1995 and 1994,
respectively).
During the fourth quarter of fiscal 1995, the Company sold 5,800 acres in
Polk County, Florida to the State of Florida in a sale negotiated by The
Nature Conservancy through the State's Conservation and Recreation Lands
Program.
Permits have been issued by the South Florida Water Management District and
the U.S. Army Corps of Engineers to begin construction on the new university.
The Company has provided a construction road as part of its road construction
commitment. Actual construction on the university is anticipated to begin in
the spring of 1996. Current plans are to have the core buildings completed for
a projected opening in the fall of 1997.
In connection with the examination by the Internal Revenue Service (see
note 8) for the years ended August 31, 1992, 1991 and 1990, a partial
settlement was made in April of 1995 relating to the year ended August 31,
1990. A payment of $385 thousand was made of which $260 thousand
represented taxes and $125 thousand represented interest. The issues
conceded related to the timing of items previously expensed. When the
matter is completely resolved, any income taxes due will become currently
payable. However, virtually all of the adjustments relate to differences
of opinion regarding the timing of recognition of various deductions and,
as a result, provision has been made through deferred income taxes and no
further significant adjustment to earnings will be necessary. Management
expects to resolve the remaining proposed adjustments during fiscal 1996.
Cash outlay for land, equipment, buildings, and other improvements totaled
$8.3 million, compared to $7.6 million during August 31, 1995 and 1994,
respectively. Major expenditures included capitalized maintenance costs
for young citrus groves and development of a new citrus grove. Land
excavation for farm leasing also continued, as did expenditures for
replacement equipment and sugarcane capital maintenance. Development is
now complete on citrus groves. Capital projects are currently expected to
decline during the next fiscal year.
Management believes that the Company will be able to meet its working
capital requirements with internally generated funds. In addition, the
Company has an unused credit commitment which provides for revolving credit
of up to $25 million of which $8.9 million was available for the Company's
general use at August 31, 1995 (see note 6).
Results of Operations
_____________________
Summary of results (in thousands):
Years Ended August 31,
1995 1994 1993
_______ _______ _______
Operating revenue $30,547 $33,188 $27,149
Gross profit 7,059 7,607 4,163
Profit (loss) on sale of real estate 7,585 3,726 (121)
Interest and investment income 998 1,045 926
Interest expense 1,176 675 508
Provision for income taxes 5,525 3,975 1,503
Effective income tax rate 38.2% 34.0% 33.7%
Net income before cumulative effect
of accounting change 8,941 7,728 2,957
Operating Revenue
_________________
Fiscal 1995 operating revenues decreased by 8 percent from fiscal 1994.
The decrease was primarily attributable to lower agricultural revenues.
Fiscal 1994 operating revenues were up 22 percent over fiscal 1993. The
increase primarily reflected improved earnings from agricultural
activities.
Gross Profit
____________
Gross profit during fiscal 1995 declined by 7 percent from fiscal 1994.
The decrease was attributable to higher production costs for citrus,
decreased sugarcane production, and lower market prices for beef, combined
with decreased sales volume.
Gross profit during fiscal 1994 was up 83 percent over fiscal 1993. The
increase was attributable to higher market prices for citrus, increased
sugarcane production and higher market prices for beef, combined with
increased sales volume.
Profit (Loss) on Sale of Real Estate
____________________________________
The Company recognized a $7.6 million profit from real estate sales during
fiscal 1995, compared to a $3.7 million profit during fiscal 1994. The
fiscal 1995 profit is attributable to the sale of 5,800 acres in Polk
County, Florida to the State of Florida.
The Company recognized a $3.7 million profit from the sale of real estate
during fiscal 1994 compared to a $121 thousand loss during fiscal 1993.
The fiscal 1994 profit was attributable to the sale of 40 acres in the
proximity of the site of the new university in Lee County, Florida.
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. Investment earnings were reinvested throughout fiscal
1995 and 1994, increasing investment levels during each year. The decline
in fiscal 1995 interest and investment income reflects an increase in
equity securities.
Interest and investment income was higher in 1994 than fiscal 1993
primarily because of higher investment levels.
Interest Expense
________________
Interest expense rose 74 and 33 percent during fiscal 1995 and 1994,
respectively. The rise in both years was due to interest rate increases
during the year, combined with an increase in the level of borrowings
during the year. However, proceeds from the Polk County real estate sale
were subsequently used to reduce debt principal. Total interest cost,
which includes capitalized interest and is discussed in Note 6, increased
69 percent during fiscal 1995 and 19 percent during fiscal 1994, compared
to each respective prior fiscal year.
Provision for Income Taxes
__________________________
The effective tax rate was 38.2 percent during fiscal year 1995, compared
to 34 percent during fiscal 1994 and 33.7 percent in fiscal 1993. The
increase was due to deferred tax accruals to provide for the effects of the
IRS audit (see note 8).
Net Income Before Cumulative Effect of Accounting Change
________________________________________________________
As a result of the factors discussed above, fiscal 1995 earnings increased
16 percent compared to fiscal 1994, while fiscal 1994 earnings were up
261.3 percent compared to fiscal 1993 earnings before the cumulative effect
of the accounting change.
Individual Operating Divisions
______________________________
Gross profit for the individual operating divisions, for fiscal 1995, 1994
and 1993, is presented in the following schedule and is discussed in
subsequent sections:
Years Ended August 31,
(in thousands)
1995 1994 1993
_______ _______ _______
CITRUS
Revenues:
Sales $19,674 $18,796 $16,466
Less harvesting & marketing 6,569 6,226 5,876
_______ _______ _______
Net Sales 13,105 12,570 10,590
Cost and Expenses:
Direct production** 5,488 4,926 5,467
Allocated cost* 2,205 2,220 2,005
_______ _______ _______
Total 7,693 7,146 7,472
_______ _______ _______
Gross profit, citrus 5,412 5,424 3,118
_______ _______ _______
SUGARCANE
Revenues:
Sales 6,026 6,839 5,010
Less harvesting & hauling 1,294 1,566 1,252
_______ _______ _______
Net Sales 4,732 5,273 3,758
Costs and expenses:
Direct production 1,681 1,789 1,499
Allocated cost* 1,291 1,367 1,305
_______ _______ _______
Total 2,972 3,156 2,804
_______ _____ _______
Gross profit, sugarcane 1,760 2,117 954
_______ _______ _______
Individual Operating Divisions (Continued)
Years Ended August 31,
(in thousands)
1995 1994 1993
_______ _______ _______
RANCH
Revenues:
Sales 2,952 5,518 3,864
Costs and expenses:
Direct production 1,438 2,241 1,809
Allocated cost* 1,008 1,608 1,147
_______ _______ _______
Total 2,446 3,849 2,956
_______ _______ _______
Gross profit, ranch 506 1,669 908
_______ _______ _______
Total gross profit,
agriculture 7,678 9,210 4,980
_______ _______ _______
OTHER OPERATIONS
Revenues:
Rock products and sand 956 1,123 913
Oil leases and land rentals 678 708 474
Sabal palms 146 134 236
Other 116 71 185
_______ _______ _______
Total 1,896 2,036 1,808
Costs and expenses:
Allocated Cost* 384 383 485
General and administrative,
all operations 2,131 3,256 2,140
_______ _______ _______
Total 2,515 3,639 2,625
_______ _______ _______
Gross loss, other
operations (619) (1,603) (817)
_______ _______ _______
Total gross profit 7,059 7,607 4,163
_______ _______ _______
Years Ended August 31,
(in thousands)
1995 1994 1993
_______ _______ _______
INTEREST & DIVIDENDS
Revenue 998 1,045 926
Expense 1,176 675 508
_______ _______ _______
Interest & dividends, net (178) 370 418
_______ _______ _______
REAL ESTATE
Revenue:
Sale of real estate 8,026 4,268 488
Expenses:
Cost of sales 111 192 146
Other Costs 330 350 463
_______ _______ _______
Total 441 542 609
_______ _______ _______
Gain (loss) on sale of
real estate 7,585 3,726 (121)
_______ _______ _______
Income before income taxes
and cumulative effect $14,466 $11,703 $ 4,460
_______ _______ _______
_______ _______ _______
* 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 1.4 million on 1,718 acres in 1995, 1.0 million on
2,212 acres in 1994 and $730 thousand on 1,435 acres in 1993.
Citrus
______
Gross profit was $5.4 million for fiscal 1995 and 1994, and $3.1 million
for fiscal 1993.
Citrus revenue for fiscal 1995 rose 5 percent over fiscal 1994 ($19.7
million during fiscal 1995 vs. $18.8 million during fiscal 1994), the
result of a 7 percent production increase for the year, as 3.4 million
boxes were harvested during fiscal 1995, compared to 3.2 million boxes
during fiscal 1994. Direct production costs increased 11 percent over
fiscal 1994 ($5.5 million during fiscal 1995 vs $4.9 million during fiscal
1994), while allocated costs remained constant for fiscal 1995 and 1994 at
$2.2 million each year.
The rise in citrus revenue was largely attributable to the increase in
production discussed above. The average market price, however, declined 2
percent ($5.80 per box in fiscal 1995 vs. $5.94 per box in fiscal 1994).
The increase in direct production was due, in part, to the addition of the last
phase of the Corkscrew West Grove. Additionally, cultivation costs increased.
These expenses are typically impacted by various circumstances, such as, the
weather, insect and other parasite pressure, combined with various disease
prevention and treatment programs. The Company practices cultivation techniques
that are designed to maintain yield per acre and maximize the related cost to
benefit ratio.
Citrus revenue during fiscal 1994 rose 14 percent over fiscal 1993 ($18.8
million during fiscal 1994 vs. $16.5 million during fiscal 1993).
Production increased by 2 percent over the fiscal 1993 level of 3.1 million
boxes to 3.2 million boxes during fiscal 1994. Direct production and
allocated costs during fiscal 1994 decreased 4 percent compared to fiscal
1993 ($7.1 million vs. $7.5 million, respectively).
The rise in citrus revenue during fiscal 1994 as compared to fiscal 1993
was attributable to increased market prices for citrus products. Market
prices increased 12 percent, averaging $5.94 per box and $5.31 per box
during fiscal 1994 and 1993, respectively.
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 conservatively applied. Differences between the estimates and
the final realization of revenues can be significant. Revenue collected in
excess of prior year and year end estimates was $1.8 million, $1.7 million
and $1.4 million during fiscal 1995, 1994 and 1993, respectively.
ACREAGE BY VARIETY AND AGE
VARIETY 0-1 1-2 3-4 5-6 7-8 9-10 11-12 13-14 15-16 20+ Acres
___ ___ ___ ___ ___ ____ _____ _____ _____ ___ _____
Early:
Parson Brown
Oranges - - 117 30 - - - - - - 147
Hamlin
Oranges 386 170 32 30 714 - 110 239 - 1,335 3,016
Red Grapefruit - - 54 - - - 48 158 99 70 429
White Grapefruit- - - 318 - - - - - 21 339
Tangelos - - - - - - - - - 135 135
Navel Oranges - - 15 - - - 54 84 - - 153
Mid Season:
Pineapple
Oranges - 103 - - - - 18 - - 467 588
Queen Oranges - - - - - - - - 11 40 51
Honey
Tangerines 80 - - 45 - - - 94 - - 219
Midsweet
Oranges 54 110 - - - - - - - - 164
Late:
Valencia
Oranges 826 308 654 305 729 - 35 165 - 1,225 4,247
_____ ___ ___ ___ _____ ___ ___ ___ ___ _____ _____
Totals: 1,346 691 872 728 1,443 0 265 740 110 3,293 9,488
Sugarcane
_________
Gross profit for fiscal 1995 was $1.8 million compared to $2.1 million for
fiscal 1994 and $954 thousand for fiscal 1993.
Sugarcane revenue decreased 12 percent during fiscal 1995 compared to
fiscal 1994 ($6.0 million vs. $6.8 million, respectively). Direct
production and allocated costs decreased 6 percent during the year ($3.0
million vs. $3.2 million during fiscal 1995 and 1994, respectively).
The sugarcane revenue and cost decreases were the result of an 11 percent
decrease in the number of acres harvested during the year (5,000 acres in
fiscal 1995 vs. 5,626 acres in fiscal 1994).
Sugarcane earnings in fiscal 1994 were 22 percent higher than in fiscal
1993 ($2.1 vs. $954 thousand in fiscal 1994 and 1993, respectively). The
earnings increase was largely attributable to a 39 percent rise in crop
yield during fiscal 1994, compared to fiscal 1993. The yield increase was
mostly due to an increase in acres harvested during the year (5,626 acres
harvested in fiscal 1994 vs. 4,625 in fiscal 1993).
Ranching
________
Gross profit from ranch operations for fiscal 1995, 1994 and 1993 was $506
thousand, $1.7 million, $908 thousand, respectively.
Ranch revenue declined 47 percent during fiscal 1995, compared to fiscal
1994 ($3.0 million in fiscal 1995 vs. $5.5 million in fiscal 1994). Direct
production and allocated costs decreased 36 percent during the same period
($2.4 million in fiscal 1995 vs. $3.8 million in fiscal 1994).
Due to current market conditions, the Company has retained ownership in calves
which would have been sold in prior years, in an attempt to improve gross profit
per head. This has resulted in a large increase in the inventory of animals
available for sale, compared to the prior year ($4.4 million vs. $2.2 million in
fiscal 1995 and 1994, respectively). Additionally, the Company has purchased
futures contracts (see note 4) to hedge against future price declines.
As a result of the factors referred to above, 44 percent fewer animals were sold
in fiscal 1995 than in fiscal 1994 (6,482 sold in fiscal 1995 vs. 11,525 in
fiscal 1994).
The decrease in direct production and allocated costs was also caused by the
decrease in the number of animals sold.
Ranch revenues increased 43 percent during fiscal 1994, compared to fiscal
1993 ($5.5 million in fiscal 1994 vs. $3.9 million during fiscal 1993) due
to more units sold during 1994 (11,525 units sold in fiscal 1994 as
compared to 8,565 in fiscal 1993) and increased sales weights. Total
direct production and allocated costs increased 30 percent during the same
period ($3.8 million vs. $3.0 million during fiscal 1994 and 1993,
respectively) also due to the increased sales volume. This increase was
offset somewhat by a 3 percent decrease in the average cost per head sold.
Other Operations
________________
Revenues from oil royalties and land rentals were $678 thousand for fiscal
1995 compared to $708 thousand and $474 thousand for fiscal 1994 and 1993,
respectively. The decline during fiscal 1995 from fiscal 1994 was due to a
decline in grazing and recreational leases due to land sales and
development around the university site.
Returns from rock products and sand were $955 thousand for fiscal 1995
compared to $1.1 million and $913 thousand for fiscal 1994 and 1993,
respectively. The variations between each of the years is due to the
overall economic situation in the construction and road building
industries. Rock and sand supplies are sufficient, and no major price
changes have occurred over the past 3 years.
Profits from the sale of sabal palms, for landscaping purposes, during
fiscal 1995 were $146 thousand compared to $134 thousand and $236 thousand
for fiscal years 1994 and 1993, respectively.
Direct and allocated expenses charged to the "Other" operations category
included general and administrative and other costs not charged directly to
citrus, ranching, sugarcane or forestry. These expenses totaled $2.5
million during fiscal 1995 compared to $3.6 million during fiscal 1994 and
$2.6 million during fiscal 1993. The decrease of fiscal 1995 from fiscal
1994, was largely due to the donation of land for the new university
included in the 1994 expenses totaling $880 thousand. This is also the
cause of the fiscal 1994 increase, compared to fiscal 1993.
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, 1995 and 1994 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, 1995. 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 statement
schedules are the responsibility of the Company's management. Our responsi-
bility is to express an opinion on these consolidated financial statements
and financial statement schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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, 1995 and 1994, and the results of their
operations and their cash flows for each of the years in the three-year
period ended August 31, 1995, in conformity with generally accepted accounting
principles. Also in our opinion, the related financial statement schedules,
when considered in relation to the consolidated financial statement taken as
a whole, present fairly, in all material respects, the information set forth
therein.
KPMG PEAT MARWICK LLP
(Signature)
October 6, 1995
Orlando, Florida
CONSOLIDATED BALANCE SHEETS
August 31,
1995 1994
_____________ ____________
ASSETS
Current assets:
Cash, including time deposits and other
cash investments of $1,116,194 in 1995
and $682,278 in 1994 $ 1,148,733 $ 967,196
Marketable equity securities available
for sale, at market in 1995 and in
1994 (note 2) 4,204,731 4,016,537
Other marketable securities available for
sale, at market in 1995, at cost in 1994
(note 2) 5,206,205 4,677,328
Accounts receivable ($5,272,823 in 1995 and
$5,233,312 in 1994 due from affiliate)
(note 9) 6,989,369 6,936,364
Mortgages and notes receivable, current
portion (note 3) 864,885 682,579
Accrued interest receivable 163,342 190,543
Inventories (note 4) 13,057,136 10,681,350
Prepaid expenses 101,461 189,120
____________ ____________
Total current assets 31,735,862 28,341,017
____________ ____________
Other assets:
Land inventories 7,322,740 6,757,549
Mortgages and notes receivable, net of
current portion (note 3) 2,229,528 3,131,465
Investments 925,785 810,677
Other 42,983 40,470
____________ ____________
Total other assets 10,521,036 10,740,161
____________ ____________
Property, buildings and equipment (note 5) 91,703,367 85,507,357
Less accumulated depreciation (24,953,086) (22,403,837)
____________ ____________
Net property, buildings and equipment 66,750,281 63,103,520
____________ ____________
Total assets $109,007,179 $102,184,698
____________ ____________
____________ ____________
August 31,
1995 1994
____________ ____________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 949,397 $ 1,386,912
Due to profit sharing plan (note 7) 217,968 248,594
Accrued ad valorem taxes 1,076,241 1,143,204
Accrued donation (note 10) 1,638,038 2,103,051
Accrued expenses 136,597 154,658
Income taxes payable 254,393 56,303
Deferred income taxes (note 8) 1,383,820 567,426
____________ ____________
Total current liabilities 5,656,454 5,660,148
Note payable to a bank (note 6) 16,055,000 18,713,998
Deferred income taxes (note 8) 11,674,524 9,424,707
Deferred retirement benefits (note 7) 214,945 428,741
____________ ____________
Total liabilities 33,600,923 34,227,594
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 1995 and 1994 7,027,827 7,027,827
Unrealized gains on marketable securities
(note 2) 264,739 -
Retained earnings 68,113,690 60,929,277
____________ ____________
Total stockholders' equity 75,406,256 67,957,104
____________ ____________
Total liabilities and stockholders'
equity $109,007,179 $102,184,698
____________ ____________
____________ ____________
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended August 31,
1995 1994 1993
___________ ___________ ___________
Revenue:
Citrus (note 9) $19,673,501 $18,796,161 $16,465,658
Sugarcane 6,025,745 6,838,759 5,010,672
Ranch 2,952,214 5,517,537 3,864,195
Forest products 146,196 134,036 236,980
Rock products and sand 955,461 1,122,893 912,863
Oil lease and land rentals 677,712 707,616 473,724
Profit on sales of real estate 8,026,209 4,267,504 487,601
Interest and investment income 998,185 1,046,198 926,008
Other income 115,760 71,449 185,089
___________ ___________ ___________
Total revenue 39,570,983 38,502,153 28,562,790
___________ ___________ ___________
Costs and expenses (including charges
from affiliate (note 9):
Citrus production, harvesting and
marketing 14,261,502 13,371,456 13,348,280
Sugarcane production, harvesting
and hauling 4,265,976 4,721,731 4,055,440
Ranch 2,446,117 3,848,877 2,956,114
Real estate 441,535 542,188 609,070
Interest (note 6) 1,175,599 674,803 508,125
Other, general and administrative
expenses 2,514,573 3,639,768 2,626,175
___________ ___________ ___________
Total costs and expenses 25,105,302 26,798,823 24,103,204
___________ ___________ ___________
Income before income taxes
and cumulative effect of
accounting change 14,465,681 11,703,330 4,459,586
Provision for income taxes (note 8) 5,524,311 3,975,486 1,502,182
___________ ___________ ___________
Net Income before cumulative
effect of accounting change 8,941,370 7,727,844 2,957,404
Cumulative effect on prior years of
changing the accounting method for
income taxes (note 8) - - 2,337,000
___________ ___________ ___________
Net Income $ 8,941,370 $ 7,727,844 $ 5,294,404
___________ ___________ ___________
___________ ___________ ___________
Weighted average number of shares
outstanding 7,027,827 7,027,827 7,027,827
___________ ___________ ___________
___________ ___________ ___________
Per share amounts:
Net income before cumulative effect
of accounting change $1.27 $1.10 $ .42
Cumulative effect of accounting change $ - $ - $ .33
Net income $1.27 $1.10 $ .75
Dividends $ .25 $ .15 $ .15
Pro forma amounts, assuming the new
method of accounting for income taxes
is applied retroactively:
Net Income $ 8,941,370 $ 7,727,844 $ 2,957,404
___________ ___________ ___________
___________ ___________ ___________
Earnings per share $1.27 $1.10 $ .42
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Unrealized
Common Stock Gains On
Preferred Shares Retained Treasury Stock Securi-
Stock Issued Amount Earnings Shares Amount ities
_____ _________ __________ ___________ _______ _________ ________
Balance, August 31, 1992 $ - 7,165,504 $7,165,504 $53,919,052 137,677 $4,041,352 $ -
________________________
Net income for the year
ended August 31, 1993 - - - 5,294,404 - - -
Treasury stock cancelled - (137,677) (137,677) (3,903,675) (137,677) (4,041,352) -
Dividends paid - - - (1,054,174) - - -
_____ _________ __________ ___________ ________ __________ ________
Balance, August 31, 1993 - 7,027,827 7,027,827 54,255,607 - - -
________________________
Net income for the year
ended August 31, 1994 - - - 7,727,844 - - -
Dividends paid - - - (1,054,174) - - -
_____ _________ __________ ___________ ________ __________ ________
Balance, August 31, 1994 - 7,027,827 7,027,827 60,929,277 - - -
________________________
Net income for the year
ended August 31, 1995 - - - 8,941,370 - - -
Unrealized gains on
securities - - - - - - 264,739
Dividends paid - - - (1,756,957) - - -
______ _________ __________ ___________ ________ __________ ________
Balance, August 31, 1995 $ - 7,027,827 $7,027,827 $68,113,690 - $ - $264,739
________________________ ______ _________ __________ ___________ ________ __________ ________
______ _________ __________ ___________ ________ __________ ________
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended August 31,
1995 1994 1993
___________ ___________ ___________
Increase (Decrease) in Cash and Cash Investments:
Cash flows from operating activities:
Net Income $ 8,941,370 $ 7,727,844 $ 5,294,404
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 4,177,199 3,883,351 3,780,646
Loss on breeding herd sales and deaths (185,422) (181,232) (100,031)
Deferred income tax expense (including
cumulative effect) 2,906,324 1,474,842 (1,687,709)
Deferred retirement benefits (213,796) 35,898 64,129
Net (gain) loss on sale of marketable securities (14,511) 84,311 (157,732)
Donations (465,013) 879,540 (1,400,000)
(Gain) loss on sale of property and equipment 157,334 (3,697) (46,187)
(Gain) loss on real estate sales (8,011,703) (4,075,316) 121,014
Increase in land inventories (565,191) (987,591) (483,791)
Other (70,388) (72,065) 14,614
Cash provided by (used for) changes in:
Accounts receivable (53,005) (1,450,066) (1,358,564)
Inventories (2,375,786) (1,021,537) 246,162
Prepaid expenses 87,659 19,053 (96,781)
Other assets (2,513) - (4,827)
Accounts payable and accrued expenses (455,575) 668,127 (422,722)
Income taxes payable 198,090 (329,921) 93,917
___________ ___________ ___________
Net cash provided by operating activities 4,055,073 6,651,541 3,856,542
___________ ___________ ___________
Years Ended August 31,
1995 1994 1993
____________ ____________ ___________
Cash flows from investing activities:
Purchases of property and equipment (8,340,284) (7,624,472) (7,625,809)
Proceeds from disposals of property and equipment 233,813 430,075 225,476
Proceeds from sale of real estate 8,322,300 1,417,847 203,392
Purchases of other assets (115,108) - (38,242)
Sale of other assets - - 31,228
Purchases of marketable securities (1,900,519) (2,098,657) (2,904,138)
Proceeds from sales of marketable securities 1,622,586 1,579,321 2,544,665
Collection of mortgages and notes receivable 719,631 149,380 385,012
___________ __________ __________
Net cash provided by (used for)
investing activities 542,419 (6,146,506) (7,178,416)
___________ __________ __________
Cash flows from financing activities:
Proceeds of bank loans 17,666,002 12,184,574 11,451,449
Repayment of loans (20,325,000) (11,190,025) (7,455,000)
Dividends paid (1,756,957) (1,054,174) (1,054,174)
___________ ___________ __________
Net cash provided by (used for)
financing activities (4,415,955) (59,625) 2,942,275
___________ ___________ __________
Net increase (decrease) in cash
and cash investments 181,537 445,410 (379,599)
Cash and Cash investments:
At beginning of year 967,196 521,786 901,385
___________ ___________ ___________
At end of year $ 1,148,733 $ 967,196 $ 521,786
___________ ___________ ___________
___________ ___________ ___________
Supplemental disclosures of cash flow information:
Cash paid for interest, net of amount capitalized $ 1,079,939 $ 582,245 $ 458,336
___________ ___________ ___________
___________ ___________ ___________
Cash paid for income taxes $ 2,419,600 $ 2,830,861 $ 759,356
___________ ___________ ___________
___________ ___________ ___________
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended August 31, 1995, 1994 and 1993
(1) Summary of Significant Accounting Policies
__________________________________________
(a) Basis of Financial Statement Presentation
_________________________________________
The accompanying financial statements include the accounts of
Alico, Inc. (the Company) and its wholly owned subsidiary,
Saddlebag Lake Resorts, Inc. (Saddlebag), 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. Fluxuation in the
market prices for citrus fruit has caused the Company to
recognize additional revenue from the prior years' crop totaling
$1,770,146, $1,697,547, and $1,352,454 during fiscal years 1995,
1994 and 1993, 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. 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 which approximates the relative sales value method.
(1), Continued
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
________________________________________
For the year ending August 31, 1995, the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 115
"Accounting for Certain Investments in Debt and Equity
Securities". Prior years' consolidated financial statements have
not been restated to retroactively apply the provisions of this
statement.
At August 31, 1995, marketable securities available for sale are
carried at the aggregate market value of the portfolio. Aggregate
net unrealized investment gains or losses are recorded net of
related deferred taxes in a separate component of equity until
realized.
At August 31, 1994, marketable securities available for sale are
carried at the lower of the aggregate cost or market value of the
portfolio. Aggregate net unrealized investment losses are included
in the results of operations.
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
____________
In February 1992, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 109, ACCOUNTING
FOR INCOME TAXES. Statement 109 requires a change from the
deferred method of accounting for income taxes of APB Opinion 11
to the asset and liability method of accounting for income taxes.
Under the asset and liability method of Statement 109, 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. Under Statement 109, 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.
Effective September 1, 1992, the Company adopted Statement 109
and has reported the cumulative effect of that change in the
method of accounting for income taxes in the fiscal 1993
consolidated statement of operations.
(h) 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.
(i) Cash Flows
__________
For purposes of the cash flows, cash and cash investments include
cash on hand and amounts due from banks with an original maturity
of less than three months.
(j) Reclassifications
_________________
Certain amounts from 1994 and 1993 have been reclassified to
conform to the 1995 presentation.
(2) Marketable Securities Available for Sale
________________________________________
The Company implemented Statement of Financial Auditing Standards
(SFAS) No. 115 "Accounting for Certain Investments in Debt and Equity
Securities" as of September 1, 1994. Prior years' consolidated
financial statements have not been restated to retroactively apply the
provisions of this statement.
SFAS 115 changes the way the Company determines the carrying value of
certain debt and equity investments. Under prior guidelines,
investments were carried at the lower of cost or fair market value.
Gains or losses on the individual securities were recognized in
earnings when the investments were sold.
At August 31, 1994, the marketable equity securities, which had a
cost basis of $4,038,704, were carried at market. The unrealized loss,
totaling $22,167, was included in the results of operations for the year
then ended.
Under SFAS 115, the Company has classified 100% of its investments in
marketable securities as available-for-sale and, as such, the seccurities
are carried at fair market value. Any unrealized gains and losses, net of
related deferred taxes, are recorded as a net amount in a separate
component of equity until realized.
The amortized cost and estimated market values of marketable securities at
August 31, 1995 and 1994 (in thousands) were as follows:
1995 1994
__________________________________________ __________________________________________
Gross Estimated Gross Estimated
Amortized Unrealized Market Amortized Unrealized Market
Cost Gains Losses Value Cost Gains Losses Value
__________ ________ ________ __________ __________ ________ ________ __________
Equity
securities $3,917 $352 $ 64 $4,205 $4,039 $ 92 $114 $4,017
Debt
securities 5,069 208 71 5,206 4,677 238 66 4,849
______ ____ ____ ______ ______ ____ ____ ______
Marketable
securities
available
for sale $8,986 $560 $135 $9,411 $8,716 $330 $180 $8,866
______ ____ ____ ______ ______ ____ ____ ______
______ ____ ____ ______ ______ ____ ____ ______
At August 31, 1995, debt instruments are collectible as follows: $50,000 within one year, $551,012
between one and five years, $525,250 between five and ten years, and $2,693,431 thereafter.
(3) Notes Receivable
________________
Notes receivable include mortgage and other notes receivable.
Mortgage notes receivable arose principally from real estate sales.
The balances (in thousands) at August 31, 1995 and 1994 are as
follows:
1995 1994
______ ______
Mortgage notes receivable on retail land sales $ 706 $ 840
Less: Unearned discount 186 233
Contract valuation discount 26 34
Allowance for uncollectible accounts 24 34
______ ______
Mortgage notes receivable on
retail land sales, net 470 539
Mortgage notes receivable on bulk land sales 2,453 3,104
Other notes receivable 171 171
______ ______
Total mortgage notes receivable 3,094 3,814
Less current portion 865 683
______ ______
Non-current portion $2,229 $3,131
______ ______
______ ______
At August 31, 1995, substantially all contracts and mortgages on
retail land sales were collectible over periods ranging from 1 to 10
years with expected maturities as follows: $54 thousand in 1996, $74
thousand in 1997, $73 thousand in 1998, $69 thousand in 1999, $53
thousand in 2000, and $147 thousand thereafter.
At August 31, 1995, notes receivable, other than those from retail
land sales, were collectible over periods ranging from 1 to 5 years
with expected maturities as follows: $811 thousand in 1996, $953
thousand in 1997, $853 thousand in 1998, $4 thousand in 1999, and $3
thousand in 2000.
(4) Inventories
___________
A summary of the Company's inventories (in thousands) at August 31,
1995 and 1994 is shown below:
1995 1994
_______ _______
Unharvested fruit crop on trees $ 6,027 $ 5,937
Unharvested sugarcane 2,138 2,160
Beef cattle 4,429 2,227
Sod 463 357
_______ _______
Total inventories $13,057 $10,681
_______ _______
_______ _______
Subject to prevailing market conditions, the Company may hedge up to 50% of
its beef inventory by entering into cattle futures contracts to reduce
exposure to changes in market prices. The Company has designated these
agreements as a hedge and, therefore, any gains or losses anticipated under
these agreements will be deferred, with the cost of the related cattle
being adjusted when the contracts are settled.
(5) Property, Buildings and Equipment
_________________________________
A summary of the Company's property, buildings and equipment (in
thousands) at August 31, 1995 and 1994 is shown below:
Estimated Use-
1995 1994 ful Lives
_______ _______ ___________
Breeding herd $12,094 $10,980 5-7 years
Buildings 3,035 2,907 5-40 years
Citrus trees 17,846 15,581 22-40 years
Sugarcane 2,142 2,034 4-15 years
Equipment and other facilities 24,256 22,407 3-40 years
_______ _______
Total depreciable properties 59,373 53,909
Less accumulated depreciation 24,953 22,404
_______ _______
Net depreciable properties 34,420 31,505
Land and land improvements 32,330 31,599
_______ _______
Net property, buildings
and equipment $66,750 $63,104
_______ _______
_______ _______
Except for special situations, the Company's citrus trees, fruit crop,
unharvested sugarcane and cattle are uninsured.
(6) Indebtedness
____________
The Company has an unsecured financing agreement with a commercial
bank that permits the Company to borrow up to $3,000,000 which is due on
demand and up to $22,000,000 which is due in January 1997. Under this
agreement, there was no current debt as of August 31, 1995 and 1994. The
total amount of long-term debt under this agreement at August 31, 1995 and
1994 was $16,055,000 and $18,713,998, respectively.
Interest cost expensed and capitalized (in thousands) during the three
years ended August 31, 1995, 1994 and 1993 was as follows:
1995 1994 1993
______ ______ ______
Interest expense $1,176 $ 675 $ 508
Interest capitalized 576 359 362
______ ______ ______
Total interest cost $1,752 $1,034 $ 870
______ ______ ______
______ ______ ______
(7) 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 $217,968, $248,594 and
$161,644 for the years ended August 31, 1995, 1994 and 1993, respectively.
Certain officers and employees also have employment contracts for
additional retirement benefits, the cost of which is accruable on a present
value basis over the remaining term of the employment agreements. The
lives of such officers and employees have been insured as a means of
funding such additional benefits. The accrued pension liability for these
additional retirement benefits at August 31, 1995 and 1994 was $109,973 and
$269,811, 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, 1995 and 1994 was $108,862 and
$115,198, respectively.
Pension expenses for the additional retirement benefits were approximately
$167,000, $196,000 and $315,000 for the years ended August 31, 1995, 1994
and 1993, respectively.
(8) Income Taxes
____________
The provision for income taxes (in thousands) for the years ended
August 31, 1995, 1994 and 1993 is summarized as follows:
1995 1994 1993
______ ______ ______
Current:
Federal income tax $1,980 $2,172 $ 916
State income tax 322 327 170
______ ______ ______
2,302 2,499 1,086
______ ______ ______
Deferred:
Federal income tax 2,911 1,234 351
State income tax 311 242 65
______ ______ ______
3,222 1,476 416
______ ______ ______
Total provision for
income taxes $5,524 $3,975 $1,502
______ ______ ______
______ ______ ______
Following is a reconciliation of the expected income tax expense computed
at the U.S. Federal statutory rate of 34 percent and the actual income tax
provision (in thousands) for the years ended August 31, 1995, 1994 and
1993:
1995 1994 1993
______ ______ ______
Expected income tax $4,918 $3,979 $1,516
Increase (decrease)
resulting from:
State income taxes, net
of federal benefit 525 375 155
Nontaxable interest
and dividends (180) (181) (192)
Other reconciling
items, net 261 (198) 23
______ ______ ______
Total provision for
income taxes $5,524 $3,975 $1,502
______ ______ ______
______ ______ ______
(8), Continued
The Company implemented Statement of Financial Accounting Standards (SFAS)
No. 109, "Accounting for Income Taxes", during the year ended August 31,
1993. The cumulative effect of this change was a one-time increase to
earnings of $2,337,000 or $.33 per share.
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.
At August 31, 1995 the Company had an unused charitable contribution
carryover totaling $10,845,000. Management estimates that $2,100,000 will
be used to reduce taxable income over the next five years. As a result,
the estimated unusable portion of the carryover has been set up as the
valuation amount in the deferred tax asset schedule below. The
contribution carryover expires in 1999.
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):
1995 1994 1993
_______ _______ _______
Deferred Tax Assets:
Contribution carryover $(4,081) $(7,300) $ (274)
Less valuation allowance 3,291 6,510 -
_______ _______ _______
Net contribution carryover (790) (790) (274)
Beef cattle inventory - (386) (260)
Pension (163) (161) (163)
Other (31) (25) -
_______ _______ _______
Total gross deferred
tax assets (984) (1,362) (697)
_______ _______ _______
(8), Continued
1995 1994 1993
_______ _______ _______
Deferred Tax Liabilities:
Long-term investments - - 179
Revenue recognized from
citrus and sugarcane 546 860 326
Unharvested crop inventories 362 344 307
Deferred revenues 3,194 - -
Property and equipment
(principally due to
depreciation and soil
and water deductions) 8,302 8,389 8,081
Mortgage notes receivable 910 1,262 93
Other 728 500 228
_______ _______ _______
Total gross deferred
tax liabilities 14,042 11,355 9,214
_______ _______ _______
Net deferred income
tax liabilities $13,058 $ 9,993 $ 8,517
_______ _______ _______
_______ _______ _______
The Company is currently under examination by the Internal Revenue Service
for the years ended August 31, 1992, 1991 and 1990. The adjustments
proposed to date by the Internal Revenue Service would potentially result
in approximately $6.9 million in additional income taxes. When the matter
is resolved, any income taxes due will become currently payable. However,
the majority of the proposed adjustments relate to the timing of
recognition of certain income and expense items already provided for in the
Company's deferred tax liability accounts.
A partial settlement was reached with the Internal Revenue Service during
April of 1995. A payment of $385,043 was made consisting of $260,259
income taxes and $124,784 interest. The items conceded related to the
timing of recognition of certain items previously expensed. The effect of
this payment was to increase interest expense by $124,784 and reduce the
current deferred tax liability by $260,259.
Management is of the opinion that the ultimate resolution of the remaining
proposed adjustments will not have a significant adverse effect on the
financial position or operations of the Company.
(9) Related Party Transactions
__________________________
Citrus
______
Citrus revenues of $17,398,420, $16,555,206 and $15,074,979 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, 1995, 1994 and
1993, respectively. Griffin is the owner of 49.71 percent of the Company's
common stock. Accounts receivable from citrus sales, included in the
accompanying balance sheets, include amounts due from Griffin totaling
$5,272,823 and $5,233,312 at August 31, 1995 and 1994, 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 $5,732,506, $5,437,019, and $5,371,996 for the years
ended August 31, 1995, 1994 and 1993, respectively. In addition, Griffin
provided the harvesting services for citrus sold to an unrelated processor.
The aggregate cost of these services was $764,082, $738,737 and $445,616
for the years ended August 31, 1995, 1994 and 1993, respectively. The
accompanying balance sheets include accounts payable to Griffin for citrus
production, harvesting and processing costs in the amount of $312,045 and
$373,303 at August 31, 1995 and 1994, 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 $4,190,784, $3,282,467 and $3,020,773 during the years
ended August 31, 1995, 1994 and 1993, respectively.
(10) Commitment
__________
During October 1992 the Company entered into an agreement to donate land,
improvements and other items, to the State of Florida, to be used as a site
for a new university. The gift included 975 acres of land, road
construction, engineering and planning services, assistance with utility
costs and academic chairs. The commitment was recorded as a contribution
in May 1994 when the title to the land was transferred. Costs related to
road construction have been accrued and capitalized into land. Other costs
will be expensed as incurred.
(11) Business Segment Information
____________________________
The Company is primarily engaged in agricultural operations. 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, 1995,
1994 and 1993 is summarized as follows:
1995 1994 1993
________ ________ ________
Revenues:
Agriculture:
Citrus $ 19,674 $ 18,796 $ 16,466
Sugarcane 6,026 6,839 5,011
Ranch 2,952 5,518 3,864
________ ________ ________
Total agriculture 28,652 31,153 25,341
Real estate 8,026 4,268 487
General corporate revenue 2,893 3,081 2,735
________ ________ ________
Consolidated total $ 39,571 $ 38,502 $ 28,563
________ ________ ________
________ ________ ________
Operating income (loss):
Agriculture:
Citrus $ 5,412 $ 5,424 $ 3,117
Sugarcane 1,760 2,117 955
Ranch 506 1,669 908
________ ________ ________
Total agriculture 7,678 9,210 4,980
Real estate 7,585 3,726 (121)
General corporate revenue 2,893 3,081 2,735
________ ________ ________
Total operating income 18,156 16,017 7,594
Interest expense (1,176) (675) (508)
General corporate expenses (2,514) (3,639) (2,626)
________ ________ ________
Income before income taxes
and cumulative effect $ 14,466 $ 11,703 $ 4,460
________ ________ ________
________ ________ ________
1995 1994 1993
________ ________ ________
Capital expenditures:
Agriculture:
Citrus $ 4,301 $ 3,977 $ 3,063
Sugarcane 743 540 1,671
Ranch 2,189 2,064 1,925
Sod 78 14 211
Farm lands 155 294 325
Heavy equipment 574 569 212
________ ________ ________
Total agriculture 8,040 7,458 7,407
General corporate 300 167 219
________ ________ ________
Consolidated total $ 8,340 $ 7,625 $ 7,626
________ ________ ________
________ ________ ________
1995 1994 1993
________ ________ ________
Depreciation, depletion and amortization:
Agriculture:
Citrus $ 1,731 $ 1,524 $ 1,411
Sugarcane 937 992 963
Ranch 1,035 862 1,053
Sod 81 83 83
Farm lands 5 2 1
Heavy equipment 295 255 166
________ ________ ________
Total agriculture 4,084 3,718 3,677
General corporate 93 165 104
________ ________ ________
Consolidated total $ 4,177 $ 3,883 $ 3,781
________ ________ ________
________ ________ ________
Identifiable assets:
Agriculture:
Citrus $ 43,449 $ 40,602 $ 35,292
Sugarcane 22,154 22,557 22,486
Ranch 12,619 9,354 8,777
Sod 1,474 1,380 1,372
Farm lands 887 736 384
Heavy equipment 1,699 1,503 1,140
________ ________ ________
Total agriculture 82,282 76,132 69,451
Real estate 10,417 9,719 5,680
General corporate 16,308 16,334 15,385
________ ________ ________
Consolidated total $109,007 $102,185 $ 90,516
________ ________ ________
________ ________ ________
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, 1995 and August 31, 1994, is as follows:
Quarters End
November 30, February 28, May 31, August 31,
1994 1993 1995 1994 1995 1994 1995 1994
_______ _______ _______ _______ _______ _______ _______ _______
Revenue:
Citrus $ 3,447 $ 1,415 $ 6,803 $ 9,662 $ 6,104 $ 5,003 $ 3,320 $ 2,716
Sugarcane 1,162 1,064 3,861 4,485 848 1,102 155 188
Ranch 611 1,378 329 576 1,210 1,356 802 2,208
Property sales 20 100 17 61 61 4,066 7,928 42
Interest 246 344 274 253 238 193 240 256
Other revenues 390 389 372 372 604 696 529 577
_______ _______ _______ _______ _______ _______ _______ _______
Total revenue 5,876 4,690 11,656 15,409 9,065 12,416 12,974 5,987
_______ _______ _______ _______ _______ _______ _______ _______
Costs and expenses:
Citrus 3,141 1,397 5,153 6,885 4,633 3,799 1,335 1,292
Sugarcane 792 871 2,960 3,336 486 585 28 (70)
Ranch 447 914 192 234 975 972 832 1,729
Interest 219 147 318 146 407 208 232 174
Other 638 782 650 750 642 1,457 1,025 1,191
_______ _______ _______ _______ _______ _______ _______ _______
Total costs and
expenses 5,237 4,111 9,273 11,351 7,143 7,021 3,452 4,316
_______ _______ _______ _______ _______ _______ _______ _______
Income before
income taxes 639 579 2,383 4,058 1,922 5,395 9,522 1,671
Provision for
income taxes 218 201 843 1,397 695 1,919 3,768 458
_______ _______ _______ _______ _______ _______ _______ _______
Net income $ 421 $ 378 $ 1,540 $ 2,661 $ 1,227 $ 3,476 $ 5,754 $ 1,213
_______ _______ _______ _______ _______ _______ _______ _______
_______ _______ _______ _______ _______ _______ _______ _______
Net income
per share $ .06 $ .05 $ .22 $ .38 $ .17 $ .49 $ .82 $ .18
_______ _______ _______ _______ _______ _______ _______ _______
_______ _______ _______ _______ _______ _______ _______ _______
The weighted average number of shares outstanding totaled 7,027,827 shares during each of the
periods presented above.
Item 9. Disagreements on Accounting and Financial Disclosure.
_______________________________________________________________________
There were no disagreements on accounting and financial disclosures.
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 Proxy Statement dated November 10, 1995.
Item 11. Executive Compensation.
_________________________________________
Item 12. Security Ownership of Certain Beneficial Owners and
_____________________________________________________________________
Management.
___________
Item 13. Certain Relationships and Related Transactions.
_________________________________________________________________
Information called for by Items 11, 12 and 13 is incorporated by
reference to Proxy Statement dated November 10, 1995.
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 Certified Public Accountants
Consolidated Balance Sheets - August 31, 1995 and 1994
Consolidated Statements of Operations - For the Years Ended
August 31, 1995, 1994 and 1993
Consolidated Statements of Stockholders' Equity - For the
Years Ended August 31, 1995, 1994 and 1993
Consolidated Statements of Cash Flows - For the Years Ended
August 31, 1995, 1994 and 1993
(a)2. Financial Statement Schedules:
_____________________________
Selected Quarterly Financial Data - For the Years Ended
August 31, 1995 and 1994 - Included in Part II, Item 8
Schedule I - Marketable Securities and Other Investments -
For Year Ended August 31, 1995
Schedule V - Property, Plant and Equipment - For the Years
Ended August 31, 1995, 1994 and 1993
Schedule VI - Reserves for Depreciation, Depletion and
Amortization of Property, Plant and Equipment - For the
Years Ended August 31, 1995, 1994 and 1993
Schedule IX - Supplementary Income Statement Information -
For the Years Ended August 31, 1995, 1994 and 1993
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 Principal - 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 13, 1994 regarding re-election of
Directors and election of Officers.
* 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, 1995
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
________ ________ ________ ________ ________
Amount of Which
Each Portfolio
of Equity Secu-
rity Issues and
Number of Shares or Each Other Se-
Name of Issuer Units-Principal Market Value of Each curity Issue
and Title of Amounts of Bonds Issue at Balance Sheet Carried in the
Each Issue and Notes Cost of Each Issue Date Balance Sheet
______________ ________________ __________________ ______________________ _______________
Municipal Bonds $3,612,500 $3,587,139 $3,777,363 $3,777,363
Mutual Funds 2,125,582 2,125,582 2,302,296 2,302,296
Preferred Stocks 80,600 2,309,614 2,394,185 2,394,185
Common Stocks 27,011 587,511 599,545 599,545
Other Investments 376,463 376,463 337,547 337,547
__________ __________ __________
Total: $8,986,309 $9,410,936 $9,410,936
__________ __________ __________
__________ __________ __________
ALICO, INC.
SCHEDULE V
PROPERTY, PLANT AND EQUIPMENT
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ _________ _________ __________ _______________ ___________
Balance Other Changes Balance at
Beginning Additions Retirements Debit and/or Close of
Description of Period at Cost or Sales Credit-Describe Period
___________ _________ _________ ___________ _______________ ___________
For Year Ended August 31, 1995
______________________________
Land $14,574,228 $ 159,902 $ 324,333 $14,409,797
Roads 403,107 86,106 489,213
Agricultural Land Preparation 9,906 9,906
Forest Improvements 102,818 2,792 100,026
Pasture Improvements 1,997,036 366,383 2,363,419
Buildings 2,907,306 147,043 19,514 3,034,835
Feeding and Watering Facilities
for Cattle Herd 32,886 3,600 36,486
Water Control Facilities 871,337 871,337
Fences 188,806 79,107 39,102 228,811
Cattle Pens 118,149 44,658 7,588 155,219
Citrus Groves, Including
Irrigation Systems 32,761,874 3,611,450 196,363 36,176,961
Equipment 5,980,970 1,386,613 552,521 6,815,062
Breeding Herd 10,979,640 1,622,552 508,013 12,094,179
Sugarcane-Land Preparation,Etc. 12,761,667 629,125 483,152 12,907,640
Sod-Land Preparation,Etc. 1,080,849 48,305 10,896 1,118,258
Farm Land Preparation 736,778 155,440 892,218
___________ __________ __________ _________________ ___________
$85,507,357 $8,340,284 $2,144,274 $0 $91,703,367
___________ __________ __________ _________________ ___________
___________ __________ __________ _________________ ___________
ALICO, INC.
SCHEDULE V
PROPERTY, PLANT AND EQUIPMENT
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ __________ __________ ___________ ______________ ___________
Balance Other Changes Balance at
Beginning Additions Retirements Debit and/or Close of
Description of Period at Cost or Sales Credit-Describe Period
___________ __________ __________ ___________ _______________ __________
For Year Ended August 31, 1994
______________________________
Land $14,891,438 $ 61,466 $ 301,327 ($77,349) * $14,574,228
Roads 371,164 31,943 403,107
Agricultural Land Preparation 9,906 9,906
Forest Improvements 102,818 102,818
Pasture Improvements 1,546,508 450,528 1,997,036
Buildings 2,784,232 353,003 196,276 (33,653) * 2,907,306
Feeding and Watering Facilities
for Cattle Herd 32,886 32,886
Water Control Facilities 871,337 871,337
Fences 200,158 3,936 15,288 188,806
Cattle Pens 138,380 35,244 55,475 118,149
Citrus Groves, Including
Irrigation Systems 29,430,781 3,347,928 33,191 16,356 * 32,761,874
Equipment 5,266,127 1,220,158 538,968 33,653 * 5,980,970
Breeding Herd 10,664,853 1,371,832 1,057,045 10,979,640
Sugarcane-Land Preparation,Etc. 12,787,783 446,203 502,808 30,489 * 12,761,667
Sod-Land Preparation,Etc. 1,104,105 13,759 6,526 (30,489) * 1,080,849
Farm Land Preparation 382,179 293,606 60,993 * 736,778
___________ __________ __________ _______ ___________
$80,584,655 $7,629,606 $2,706,904 $0 $85,507,357
___________ __________ __________ _______ ___________
* Reclassification ___________ __________ __________ _______ ___________
ALICO, INC.
SCHEDULE V
PROPERTY, PLANT AND EQUIPMENT
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
________ _________ _________ ___________ _______________ __________
Balance Other Changes Balance at
Beginning Additions Retirements Debit and/or Close of
Description of Period at Cost or Sales Credit-Describe Period
___________ _________ _________ ___________ _______________ __________
For Year Ended August 31, 1993
______________________________
Land $14,766,668 $ 140,540 $ 15,770 $14,891,438
Roads 146,245 224,919 371,164
Agricultural Land Preparation 9,906 9,906
Forest Improvements 102,818 102,818
Pasture Improvements 1,367,008 211,033 31,533 1,546,508
Buildings 2,465,901 385,726 67,395 2,784,232
Feeding and Watering Facilities
for Cattle Herd 145,599 112,713 32,886
Water Control Facilities 892,819 21,482 871,337
Fences 512,638 19,451 331,931 200,158
Cattle Pens 294,754 4,527 160,901 138,380
Citrus Groves, Including
Irrigation Systems 28,065,771 2,690,898 1,325,888 29,430,781
Equipment 7,009,291 444,364 2,187,528 5,266,127
Breeding Herd 9,750,691 1,557,897 643,735 10,664,853
Horses, Saddles, Etc. 3,042 3,042 0
Sugarcane-Land Preparation,Etc. 11,567,753 1,417,279 197,249 12,787,783
Sod-Land Preparation,Etc. 897,507 206,598 1,104,105
Farm Land Preparation 59,601 322,578 382,179
___________ __________ __________ ______________ ___________
$78,058,012 $7,625,810 $5,099,167 $0 $80,584,655
___________ __________ __________ ______________ ___________
___________ __________ __________ ______________ ___________
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
Balance Charged to Other Changes Balance at
Beginning Profit & Loss Add (Deduct) Close of
Description of Period or Income Retirements Describe Period
___________ _________ _____________ ___________ ___________ __________
For the Year Ended August 31, 1995
__________________________________
Forest Improvements $ 2,792 $ $ 2,792 $ 0
Buildings 974,796 137,700 19,515 1,092,981
Feeding and Watering Facilities
for Cattle Herd 19,034 2,707 21,741
Water Control Facilities 707,510 158,490 866,000
Fences 121,246 14,187 39,103 96,330
Cattle Pens 45,006 12,258 7,588 49,676
Citrus Groves, Including
Irrigation System 7,834,438 1,364,102 196,362 9,002,178
Equipment 2,924,537 866,991 461,927 3,329,601
Breeding Herd 7,120,195 855,410 415,659 7,559,946
Sugarcane-Land Preparation, Etc. 2,521,318 714,115 483,152 2,752,281
Sod-Land Preparation, Etc. 129,539 46,514 1,852 174,201
Farm Land Preparation 3,426 4,725 8,151
___________ __________ __________ __________ ___________
$22,403,837 $4,177,199 $1,627,950 $0 $24,953,086
___________ __________ __________ __________ ___________
___________ __________ __________ __________ ___________
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
Balance Charged to Other Changes Balance at
Beginning Profit & Loss Add (Deduct) Close of
Description of Period or Income Retirements Describe Period
___________ _________ _____________ ___________ ___________ __________
For the Year Ended August 31, 1994
__________________________________
Forest Improvements $ 2,792 $ $ $ 2,792
Pasture Improvements 0 0
Buildings 995,148 130,828 151,180 974,796
Feeding and Watering Facilities
for Cattle Herd 16,394 2,640 19,034
Water Control Facilities 534,310 173,200 707,510
Fences 120,349 16,185 15,288 121,246
Cattle Pens 78,189 10,977 44,160 45,006
Citrus Groves, Including
Irrigation Systems 6,671,252 1,196,377 33,191 7,834,438
Equipment 2,674,991 778,631 529,085 2,924,537
Breeding Herd 6,866,391 699,540 445,736 7,120,195
Sugarcane-Land Preparation, Etc. 2,269,475 754,651 502,808 2,521,318
Sod-Land Preparation, Etc. 83,420 46,402 283 129,539
Farm Land Preparation 996 2,430 3,426
___________ __________ __________ _________ ___________
$20,313,707 $3,811,861 $1,721,731 $0 $22,403,837
___________ __________ __________ _________ ___________
___________ __________ __________ _________ ___________
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
Balance Charged to Other Changes Balance at
Beginning Profit & Loss Add (Deduct) Close of
Description of Period or Income Retirements Describe Period
___________ _________ ____________ ___________ ________ __________
For the Year Ended August 31, 1993
__________________________________
Forest Improvements $ 2,792 $ $ $ 2,792
Pasture Improvements 31,444 31,444 0
Buildings 936,005 120,014 60,871 995,148
Feeding and Watering Facilities
for Cattle Herd 125,855 3,266 112,727 16,394
Water Control Facilities 382,591 173,200 21,481 534,310
Fences 435,695 16,584 331,930 120,349
Cattle Pens 225,516 13,574 160,901 78,189
Citrus Groves, Including
Irrigation Systems 6,903,485 1,093,658 1,325,891 6,671,252
Equipment 4,148,277 697,461 2,170,747 2,674,991
Breeding Herd 6,276,280 869,330 279,219 6,866,391
Horses, Saddles, Etc. 3,042 3,042 0
Sugarcane-Land Preparation, Etc. 1,720,294 746,430 197,249 2,269,475
Sod-Land Preparation, Etc. 37,287 46,133 83,420
Farm Land Preparation 0 996 996
___________ __________ __________ ________ ___________
$21,228,563 $3,780,646 $4,695,502 $0 $20,313,707
___________ __________ __________ ________ ___________
___________ __________ __________ ________ ___________
ALICO, INC.
___________
SCHEDULE IX
___________
SUPPLEMENTARY INCOME STATEMENT INFORMATION
__________________________________________
____________________________________________________________________________________________________
COLUMN A COLUMN B
____________________________________________________________________________________________________
Charged to Costs and Expenses
_____________________________
Years Ended August 31,
______________________
Item 1995 1994 1993
____ ____ ____ ____
1. Maintenance and repairs $ 948,602 $ 916,433 $ 907,517
2. Taxes, other than payroll
and income taxes 1,539,544 1,794,973 1,392,564
EXHIBIT 11
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of August 31, 1995:
Number of shares outstanding at August 31, 1994 7,027,827
_________
_________
Number of shares outstanding at August 31, 1995 7,027,827
_________
_________
Weighted Average 9/1/94 - 8/31/95 7,027,827
_________
_________
EXHIBIT 12
ALICO, INC.
Computation of Ratios:
1994 Current Assets $28,341,017
Current Liabilities 5,660,148
28,341,017 divided by 5,660,148 = 5.01:1
1995 Current Assets $31,735,862
Current Liabilities 5,656,454
31,735,862 divided by 5,656,454 = 5.61:1
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 14, 1995 Ben Hill Griffin, III
Date President, Chief Executive
Officer and Director
(Signature)
November 14, 1995 W. Bernard Lester
Date Executive Vice President,
Chief Operating Officer and
Director
(Signature)
November 14, 1995 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:
J. C. Barrow, Jr. K. E. Hartsaw
Director Director
(Signature) (Signature)
Walker E. Blount, Jr. Lloyd G. Hendry
Director Director
(Signature) (Signature)
Ben Hill Griffin, IV Thomas E. Oakley
Director Director
(Signature) (Signature)
John C. Updike
Director
(Signature)
November 14, 1995
Date