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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
__X__ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended August 31, 1996.
OR
_____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ________________ to_______________.
Commission file number 0-261.
ALICO, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Florida 59-0906081
_______________________________ ____________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 338, La Belle, Florida 33975
________________________________________ __________
(Address of principal executive offices) (Zip Code)
(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 11, 1996 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 $72,187,420.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's Annual Report and Proxy Statement dated
November 4, 1996 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 164,568 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 5,023 acres in production during the 1996 fiscal year consisted of
110 acres planted in the fall of 1989, 380 acres planted in 1990, 1904
acres planted in 1992, 1,060 acres planted in 1993, and 1,569 acres planted
in 1994.
The Company continued to expand agriculture activities during the 1996
fiscal year, continuing development of a farm leasing project.
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 3 to 5 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 70% of the lots have been sold.
Citrus
______
Approximately 7,790 acres of citrus were harvested during the 1996 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, 1996, approximately 88% of the Company's
fruit crop was marketed under this agreement, the same percentage as in
1994/95. The Company expects that the majority of the 1996/97 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 20,000 cows, bulls and replacement heifers. Approximately
45% of the herd are from one to five years old, while the remaining 55% 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 5,023 acres and 5,000 acres of sugarcane in production
during the 1995/96 and 1994/95 fiscal year, respectively. The 1995/96 and
1994/95 crops yielded approximately 187,000 and 186,000 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 1995/96 fiscal year, revenues consisted 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 others for grazing, farming and recreational
uses, on a tenant-at-will basis, for an annual fee. The income is not
significant when compared to overall gross income, however, it does help to
offset the expense of carrying these properties until they are put to a
more profitable use. The Company has developed additional land to lease
for farming.
There were no significant changes in the method of rental for these
purposes during the past fiscal year.
Leases for Oil and Mineral Exploration
______________________________________
The Company has leased subsurface rights to a portion of it's properties
for the purpose of oil and mineral exploration. Currently, there is one
lease 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 1996 the Company had a total of 134 full-time
employees classified as follows: Citrus 60; Ranch 17; Sugarcane 10;
Facilities Maintenance Support 32; 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, 1996, the Company owned a total of 164,568 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 3,645 9,924
Hendry 3,823 76,798 26,136 220 2,299 7,600 6,261 3,629 126,766
Collier 1,902 5,371 1,212 -- 4,041 -- -- 2,333 14,859
______ _______ ______ ___ _____ _____ _____ _____ _______
Totals 10,006 92,127 27,795 220 9,488 7,600 7,721 9,611 164,568
______ _______ ______ ___ _____ _____ _____ _____ _______
______ _______ ______ ___ _____ _____ _____ _____ _______
Of the above lands, the Company utilizes 27,348 acres of improved pasture
plus approximately 56,000 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 began 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
1996 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 November 26, 1996.
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) 54
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 57
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 44
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 1996 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
1996, except for a form 4 which was filed late by Mr. Thomas E. Oakley
reporting the sale of 1,500 shares of Common Stock on April 25, 1996 and the
purchase of 50 shares of Common Stock on April 29, 1996.
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, 1996 and 1995 are presented
below:
1996 1995
Bid Price Bid Price
_________ _________
High Low High Low
First Quarter 22 1/4 17 18 1/4 16 1/2
Second Quarter 26 1/2 21 3/4 17 5/16 15 1/2
Third Quarter 25 1/2 20 11/16 17 1/2 15
Fourth Quarter 22 3/4 17 1/4 20 15 1/2
Approximate Number of Holders of Common Stock
_____________________________________________
As of October 11, 1996 there were approximately 1,023 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 22, 1993 November 12, 1993 $.15
October 21, 1994 November 10, 1994 $.25
October 20, 1995 November 10, 1995 $.35
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 1996 1995 1994 1993 1992
________ ________ ________ ________ ________
(In Thousands Except Per Share Amounts)
Revenues $ 36,089 $ 39,571 $ 38,502 $ 28,563 $ 32,284
Costs and Expenses 29,269 25,105 26,799 24,103 24,930
Income Taxes 2,381 5,525 3,975 1,503 2,455
Cumulative Effect of
Accounting Change - - - 2,337 -
Net Income 4,439 8,941 7,728 5,294 4,899
Average Number of
Shares Outstanding 7,028 7,028 7,028 7,028 7,028
Net Income per Share .63 1.27 1.10 .75 .70
Cash Dividend Paid per Share .35 .25 .15 .15 .15
Current Assets 34,877 31,736 28,341 23,597 22,572
Total Assets 114,504 109,007 102,185 90,516 85,632
Current Liabilities 5,115 5,656 5,660 2,936 4,748
Ratio-Current Assets
to Current Liabilities 6.82:1 5.61:1 5.01:1 8.04:1 4.75:1
Working Capital 29,762 26,080 22,680 20,661 17,824
Long-Term Obligations 32,006 27,945 28,568 26,296 23,840
Total Liabilities 37,121 33,601 34,228 29,232 28,588
Stockholders' Equity 77,383 75,406 67,957 61,283 57,043
Item 7. Management's Discussion and Analysis of Financial
__________________________________________________________________
Condition and Results of Operations.
____________________________________
The following discussion focuses on the results of operations and the
financial condition of Alico.
This section should be read in conjunction with the consolidated financial
statements and notes.
Liquidity and Capital Resources
_______________________________
The Company had cash and marketable securities of $11.1 million at August
31, 1996 compared with $10.6 million at August 31, 1995. Working capital
also increased, from $26.1 million at August 31, 1995 to $29.8 million at
August 31, 1996. Improved market prices for citrus products has caused
an increase in year end receivables for these products and is the primary
factor in the rise of working capital.
Actual construction on the university began in the third quarter of fiscal
1996 (see note 10). 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, partial settlements
were made with the Internal Revenue Service during April of 1995 and June of
1996 for the year ended August 31, 1990. The items conceded related to the
timing of recognition of certain items previously expensed. The effect of
the $385,043 payment made in April 1995 was to increase interest expense by
$124,784 and reduce the current deferred tax liability by $260,259. The
$1,000,000 payment made in June 1996 reduced the current deferred tax liability
by $737,000. Interest totaling $263,000 was recognized for the year ending
August 31, 1996. 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 is expected. Management expects to
resolve the remaining proposed adjustments during fiscal 1997.
Cash outlay for land, equipment, buildings, and other improvements totaled $7.1
million, compared to $8.3 million during August 31, 1996 and 1995, respectively.
Major expenditures included capitalized maintenance costs for young citrus
groves. 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, for the foreseeable future, with internally generated funds. In
addition, the Company has unused credit commitments which provided for revolving
credit of up to $30 million of which $9.4 million was available for the Com-
pany's general use at August 31, 1996 (see note 6).
Results of Operations
_____________________
Summary of results (in thousands):
Years Ended August 31,
1996 1995 1994
_______ _______ _______
Operating revenue $34,505 $30,547 $33,188
Gross profit 6,721 7,059 7,607
Profit (loss) on sale of real estate 56 7,585 3,726
Interest and investment income 1,033 998 1,045
Interest expense 990 1,176 675
Provision for income taxes 2,381 5,525 3,975
Effective income tax rate 34.9% 38.2% 34.0%
Net income 4,439 8,941 7,728
Operating Revenue
_________________
Operating revenues for fiscal 1996 increased 13 percent over fiscal 1995,
primarily the result of increased citrus and ranch sales revenues.
Fiscal 1995 operating revenues decreased by 8 percent from fiscal 1994. The
decrease was primarily attributable to lower agricultural revenues.
Gross Profit
____________
Gross profit during fiscal 1996 decreased 5 percent from fiscal 1995. While
gross profit from agriculture during the year approximated the prior year, the
decline was due to increases in general and administrative expenses and allo-
cated costs.
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.
Profit on Sale of Real Estate
____________________________________
Profit from the sale of real estate declined to $56 thousand during fiscal 1996,
compared to $7.6 million during fiscal 1995. Sales were minimal, compared to
the past two years, which included large sales in Polk and Lee Counties during
fiscal 1995 and 1994, respectively.
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 was attributable to the sale of 5,800 acres in Polk County to the
State of 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 1996 and 1995,
increasing investment levels during each year. The rise in fiscal 1996 net
interest and investment income resulted from higher investment levels.
Interest and investment income was lower in 1995 than fiscal 1994 primarily
because of increased investment levels in equity securities.
Interest Expense
________________
Interest expense decreased 16 percent during fiscal 1996 due to falling
interest rates during the year. Conversely, fiscal 1995 interest expense rose
74 % due to increased rates. Total interest cost, which includes capitalized
interest and is discussed in Note 6, decreased 3 percent during fiscal 1996 and
rose 69 percent during fiscal 1995, compared to each respective prior fiscal
year.
Provision for Income Taxes
__________________________
The effective tax rate was 34.9 percent during fiscal year 1996, compared to
38.2 percent during fiscal 1995 and 34 percent in fiscal 1994. The fiscal
1995 increase was due to deferred tax accruals to provide for the effects of
the IRS audit (see note 8).
Individual Operating Divisions
______________________________
Gross profit for the individual operating divisions, for fiscal 1996, 1995
and 1994, is presented in the following schedule and is discussed in
subsequent sections:
Years Ended August 31,
(in thousands)
1996 1995 1994
_______ _______ _______
CITRUS
Revenues:
Sales $22,966 $19,674 $18,796
Less harvesting & marketing 6,948 6,569 6,226
_______ _______ _______
Net Sales 16,018 13,105 12,570
Cost and Expenses:
Direct production** 5,964 5,488 4,926
Allocated cost* 2,470 2,205 2,220
_______ _______ _______
Total 8,434 7,693 7,146
_______ _______ _______
Gross profit, citrus 7,584 5,412 5,424
_______ _______ _______
SUGARCANE
Revenues:
Sales 5,851 6,026 6,839
Less harvesting & hauling 1,237 1,294 1,566
_______ _______ _______
Net Sales 4,614 4,732 5,273
Costs and expenses:
Direct production 1,758 1,681 1,789
Allocated cost* 1,152 1,291 1,367
_______ _______ _______
Total 2,910 2,972 3,156
_______ _____ _______
Gross profit, sugarcane 1,704 1,760 2,117
_______ _______ _______
Individual Operating Divisions (Continued)
Years Ended August 31,
(in thousands)
1996 1995 1994
_______ _______ _______
RANCH
Revenues:
Sales 3,796 2,952 5,518
Costs and expenses:
Direct production 3,890 1,438 2,241
Allocated cost* 1,539 1,008 1,608
_______ _______ _______
Total 5,429 2,446 3,849
_______ _______ _______
Gross profit (loss), ranch (1,633) 506 1,669
_______ _______ _______
Total gross profit,
agriculture 7,655 7,678 9,210
_______ _______ _______
OTHER OPERATIONS
Revenues:
Rock products and sand 935 956 1,123
Oil leases and land rentals 679 678 708
Sabal palms 197 146 134
Other 81 116 71
_______ _______ _______
Total 1,892 1,896 2,036
Costs and expenses:
Allocated Cost* 456 384 383
General and administrative,
all operations 2,370 2,131 3,256
_______ _______ _______
Total 2,826 2,515 3,639
_______ _______ _______
Gross loss, other
operations (934) (619) (1,603)
_______ _______ _______
Total gross profit 6,721 7,059 7,607
_______ _______ _______
Years Ended August 31,
(in thousands)
1996 1995 1994
_______ _______ _______
INTEREST & DIVIDENDS
Revenue 1,033 998 1,045
Expense 990 1,176 675
_______ _______ _______
Interest & dividends, net 43 (178) 370
_______ _______ _______
REAL ESTATE
Revenue:
Sale of real estate 551 8,026 4,268
Expenses:
Cost of sales 151 111 192
Other Costs 344 330 350
_______ _______ _______
Total 495 441 542
_______ _______ _______
Gain on sale of real estate 56 7,585 3,726
_______ _______ _______
Income before income taxes $ 6,820 $14,466 $11,703
_______ _______ _______
_______ _______ _______
* 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 $1.6 million on 1,648 acres in 1996, $1.4 million on
1,718 acres in 1995 and $1.0 million on 2,212 acres in 1994.
Citrus
______
Gross profit was $7.6 million for fiscal 1996 and $5.4 million for fiscal
1995 and 1994.
Revenue from citrus sales increased 17 percent during fiscal 1996, compared to
fiscal 1995 ($22.9 million during fiscal 1996 vs. $19.7 million during fiscal
1995). This was largely attributable to an 8 percent increase in production
for the year (3.7 million boxes during fiscal 1996 vs. 3.4 million during fiscal
1995), combined with an 8 percent increase in the average market price per box
($6.21 in fiscal 1996 vs. $5.80 in fiscal 1995).
Direct production costs, associated with the increased yield, rose 10 percent
during fiscal 1996. The corresponding large increase in revenues from citrus
sales offset the rise in costs and generated the 40 percent increase in gross
profit for this division.
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 during fiscal 1995 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 during fiscal 1995 was due, in part, to the
addition of the last phase of the Corkscrew West Grove. However, cultivation
costs increased again in fiscal 1996. 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 increase
yield per acre and maximize the related cost to benefit ratio.
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 reali-
zation of revenues can be significant. Revenue collected in excess of prior
year and year end estimates was $1.1 million, $1.8 million and $1.7 million
during fiscal 1996, 1995 and 1994, 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 62 - 714 - 110 239 1,335 3,016
Red Grapefruit- - - 54 - - - 48 158 169 429
White Grapefruit- - - - 318 - - - - 21 339
Tangelos - - - - - - - - - 135 135
Navel Oranges - - - 15 - - - 54 84 - 153
Mid Season:
Pineapple
Oranges - - 103 - - - - 18 - 467 588
Queen Oranges - - - - - - - - - 51 51
Honey
Tangerines - 80 - - 45 - - - 94 - 219
Midsweet
Oranges - 54 110 - - - - - - - 164
Late:
Valencia
Oranges - 826 310 557 329 800 - 35 165 1,225 4,247
_____ ___ ___ ___ _____ ___ ___ ___ ___ _____ _____
Totals: - 1,346 693 805 722 1,514 - 265 740 3,403 9,488
Sugarcane
_________
Gross profit for fiscal 1996 was $1.7 million compared to $1.8 million for
fiscal 1995 and $2.1 million for fiscal 1994.
Sales revenues from sugarcane decreased 3 percent during fiscal 1996, compared
to fiscal 1995 ($5.9 million vs. $6.0 million, respectively). Direct production
and allocated costs also decreased 2 percent during the year ($2.9 million vs.
$3.0 million, respectively).
The number of acres harvested and resulting yield for fiscal 1996 approximated
fiscal 1995 levels, resulting in the relatively minor difference in operating
results (5 thousand acres harvested yielded 187 thousand gross tons in fiscal
1996 vs. 5 thousand acres yielding 186 thousand gross tons during fiscal 1995).
Sugarcane revenue decreased 12 percent during fiscal 1995 compared to fiscal
1994 ($6.0 million vs. $6.8 million, respectively). Direct production and allo-
cated 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).
Ranching
________
The gross profit (loss) from ranch operations for fiscal 1996, 1995 and 1994
was $(1.6 million), $506 thousand and $1.7 million, respectively.
Revenues from cattle sales increased 27 percent during fiscal 1996, compared to
fiscal 1995 ($3.8 million in fiscal 1996 vs. $3.0 million in fiscal 1995). The
number of animals sold during the year increased 11 percent over the prior year
(7,211 sold in fiscal 1996 vs. 6,482 in fiscal 1995); however, the average
revenue per pound decresed 17 percent.
Due to current market conditions, the Company has continued to retain ownership
in calves, which would have been sold in prior years, improving gross profit per
head. Additionally, the Company has purchased futures contracts (see note 4) to
hedge against future price declines.
The large increase in revenue is attributable to the increase in the number of
feeder cattle sold during fiscal 1996. By retaining ownership in calves and
selling them at heavier weights, the Company was able to increase revenue per
head by 22 percent. However, direct production and allocated costs have more
than doubled ($5.4 million vs. $2.4 million during fiscal 1996 and 1995,
respectively). A large portion of the increase reflects the additional cost
of feeding the calves until they reach a saleable finished weight. Adverse
weather and growing conditions for corn combined to cause a grain shortage,
significantly driving the cost of cattle feed up.
The decrease in the market prices for beef is the primary cause for the loss
in this division. An adjustment totaling $909 thousand was required during
the year to write the beef inventory down to its estimated net realizable value
(lower of cost or market).
Historically, the Company has included its sod farming activities with ranching
operations. Due to excessive rain and weed intrusion, the Company had to write
off certain sod fields in May 1996. The writeoff included approximately $160
thousand of remaining basis and $240 thousand of inventoried costs, for a total
loss of approximately $400 thousand.
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 produc-
tion and allocated costs decreased 36 percent during the same period ($2.4
million in fiscal 1995 vs. $3.8 million in fiscal 1994).
As a result of retaining calves in the feedlot, 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.
Other Operations
________________
Revenues from oil royalties and land rentals were $679 thousand for fiscal
1996 compared to $678 thousand and $708 thousand for fiscal 1995 and 1994,
respectively. The decline during fiscal 1996 and 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 $935 thousand for fiscal 1996
compared to $955 thousand and $1.1 million for fiscal 1995 and 1994,
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 1996 were $197 thousand compared to $146 thousand and $134 thousand
for fiscal years 1995 and 1994, 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 $2.8 million
during fiscal 1996 compared to $2.5 million during fiscal 1995 and $3.6 million
during fiscal 1994. The fiscal 1996 increase over fiscal 1995 is primarily
attributable to increases in employee benefits ($141 thousand), workers' compen-
sation expense ($38 thousand) and ad valorem taxes ($82 thousand). 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.
During May of 1996, the Company agreed to sell 21,700 acres of land, in Hendry
County, Florida, to the South Florida Water Management District for $11.5
million. The closing is expected to occur by the end of December 1996. The
Company may elect to use a portion of the sales value for a like kind property
exchange. If a like kind property exchange occurs, the Company will not recog-
nize revenues or profit for the portion of the property exchanged. If the
property is sold, the Company will recognize revenue totaling $11.5 million and
a pretax gain in excess of $11 million.
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 subsid-
iary as of August 31, 1996 and 1995 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, 1996. 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 responsibility 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 signif-
icant 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, 1996 and 1995, and the results of their
operations and their cash flows for each of the years in the three-year
period ended August 31, 1996, in conformity with generally accepted accounting
principles. Also in our opinion, the related consolidated financial
statement schedules, when considered in relation to the consolidated
financial statements taken as a whole, present fairly, in all material
respects, the information set forth therein.
KPMG PEAT MARWICK LLP
(Signature)
October 4, 1996
Orlando, Florida
CONSOLIDATED BALANCE SHEETS
August 31,
1996 1995
_____________ ____________
ASSETS
Current assets:
Cash, including time deposits and other
cash investments of $1,396,193 in 1996
and $1,116,194 in 1995 $ 1,428,059 $ 1,148,733
Marketable equity securities available
for sale, at estimated fair value in
1996 and in 1995 (note 2) 6,799,590 4,204,731
Other marketable securities available for
sale, at estimated fair value in 1996,
and in 1995 (note 2) 2,826,435 5,206,205
Accounts receivable ($7,758,469 in 1996 and
$5,272,823 in 1995 due from affiliate)
(note 9) 9,432,838 6,989,369
Mortgages and notes receivable, current
portion (note 3) 867,145 864,885
Accrued interest receivable 113,286 163,342
Inventories (note 4) 13,284,527 13,057,136
Prepaid expenses 124,752 101,461
____________ ____________
Total current assets 34,876,632 31,735,862
____________ ____________
Other assets:
Land inventories 7,777,942 7,322,740
Mortgages and notes receivable, net of
current portion (note 3) 1,531,947 2,229,528
Investments 1,016,526 925,785
Other - 42,983
____________ ____________
Total other assets 10,326,415 10,521,036
____________ ____________
Property, buildings and equipment (note 5) 97,029,453 91,703,367
Less accumulated depreciation (27,728,927) (24,953,086)
____________ ____________
Net property, buildings and equipment 69,300,526 66,750,281
____________ ____________
Total assets $114,503,573 $109,007,179
____________ ____________
____________ ____________
August 31,
1996 1995
____________ ____________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,070,092 $ 949,397
Due to profit sharing plan (note 7) 223,152 217,968
Accrued ad valorem taxes 1,095,427 1,076,241
Accrued donation (note 10) 1,236,340 1,638,038
Accrued expenses 142,047 136,597
Income taxes payable 190,639 254,393
Deferred income taxes (note 8) 1,157,169 1,383,820
____________ ____________
Total current liabilities 5,114,866 5,656,454
Note payable to a bank (note 6) 20,630,000 16,055,000
Deferred income taxes (note 8) 11,291,936 11,674,524
Deferred retirement benefits (note 7) 84,117 214,945
____________ ____________
Total liabilities 37,120,919 33,600,923
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 1996 and 1995 7,027,827 7,027,827
Unrealized gains on marketable securities
(note 2) 261,686 264,739
Retained earnings 70,093,141 68,113,690
____________ ____________
Total stockholders' equity 77,382,654 75,406,256
____________ ____________
Total liabilities and stockholders'
equity $114,503,573 $109,007,179
____________ ____________
____________ ____________
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended August 31,
1996 1995 1994
___________ ___________ ___________
Revenue:
Citrus (note 9) $22,966,004 $19,673,501 $18,796,161
Sugarcane 5,850,764 6,025,745 6,838,759
Ranch 3,795,612 2,952,214 5,517,537
Forest products 196,906 146,196 134,036
Rock products and sand 934,992 955,461 1,122,893
Oil lease and land rentals 679,039 677,712 707,616
Profit on sales of real estate 550,578 8,026,209 4,267,504
Interest and investment income 1,033,124 998,185 1,046,198
Other income 81,817 115,760 71,449
___________ ___________ ___________
Total revenue 36,088,836 39,570,983 38,502,153
___________ ___________ ___________
Costs and expenses (including charges
from affiliate (note 9):
Citrus production, harvesting and
marketing 15,381,924 14,261,502 13,371,456
Sugarcane production, harvesting
and hauling 4,147,284 4,265,976 4,721,731
Ranch 5,429,239 2,446,117 3,848,877
Real estate 494,281 441,535 542,188
Interest (note 6) 990,082 1,175,599 674,803
Other, general and administrative
expenses 2,826,422 2,514,573 3,639,768
___________ ___________ ___________
Total costs and expenses 29,269,232 25,105,302 26,798,823
___________ ___________ ___________
Income before income taxes 6,819,604 14,465,681 11,703,330
Provision for income taxes (note 8) 2,380,414 5,524,311 3,975,486
___________ ___________ ___________
Net Income $ 4,439,190 $ 8,941,370 $ 7,727,844
___________ ___________ ___________
___________ ___________ ___________
Weighted average number of shares
outstanding 7,027,827 7,027,827 7,027,827
___________ ___________ ___________
___________ ___________ ___________
Per share amounts:
Net income $ .63 $ 1.27 $ 1.10
Dividends $ .35 $ .25 $ .15
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Unrealized
Common Stock Gains On
Preferred Shares Retained Securi-
Stock Issued Amount Earnings ities
_____ _________ __________ ___________ _______
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
________________________
Net income for the year
ended August 31, 1996 - - - 4,439,190 -
Unrealized loss on
securities - - - - (3,053)
Dividends paid - - - (2,459,739) -
______ _________ __________ ___________ ________
Balance, August 31, 1996 - 7,027,827 $7,027,827 $70,093,141 $261,686
________________________ ______ _________ __________ ___________ ________
______ _________ __________ ___________ ________
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended August 31,
1996 1995 1994
___________ ___________ ___________
Increase (Decrease) in Cash and Cash Investments:
Cash flows from operating activities:
Net Income $ 4,439,190 $ 8,941,370 $ 7,727,844
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 4,136,333 4,177,199 3,883,351
Gain on breeding herd sales (255,277) (185,422) (181,232)
Deferred income tax expense and payments (607,302) 2,906,324 1,474,842
Deferred retirement benefits (130,828) (213,796) 35,898
Net (gain) loss on sale of marketable securities (128,473) (14,511) 84,311
Donations (401,698) (465,013) 879,540
(Gain) loss on sale of property and equipment 305,485 157,334 (3,697)
Gain on real estate sales (379,734) (8,011,703) (4,075,316)
Increase in land inventories (455,202) (565,191) (987,591)
Other 74,426 (70,388) (72,065)
Cash provided by (used for) changes in:
Accounts receivable (2,443,469) (53,005) (1,450,066)
Inventories (227,391) (2,375,786) (1,021,537)
Prepaid expenses (23,291) 87,659 19,053
Other assets 42,983 (2,513) -
Accounts payable and accrued expenses 126,145 (455,575) 668,127
Income taxes payable (63,754) 198,090 (329,921)
___________ ___________ ___________
Net cash provided by operating activities 4,008,143 4,055,073 6,651,541
___________ ___________ ___________
Years Ended August 31,
1996 1995 1994
____________ ____________ ___________
Cash flows from investing activities:
Purchases of property and equipment (7,141,814) (8,340,284) (7,624,472)
Proceeds from disposals of property and equipment 364,398 233,813 430,075
Proceeds from sale of real estate 420,364 8,322,300 1,417,847
Purchases of other assets (215,575) (115,108) -
Proceeds from the sale of other assets 124,834 - -
Purchases of marketable securities (3,848,245) (1,900,519) (2,098,657)
Proceeds from sales of marketable securities 3,756,639 1,622,586 1,579,321
Collection of mortgages and notes receivable 695,321 719,631 149,380
___________ __________ __________
Net cash provided by (used for)
investing activities (5,844,078) 542,419 (6,146,506)
___________ __________ __________
Cash flows from financing activities:
Proceeds of bank loans 17,316,000 17,666,002 12,184,574
Repayment of loans (12,741,000) (20,325,000) (11,190,025)
Dividends paid (2,459,739) (1,756,957) (1,054,174)
___________ ___________ __________
Net cash provided by (used for)
financing activities 2,115,261 (4,415,955) (59,625)
___________ ___________ __________
Net increase in cash
and cash investments 279,326 181,537 445,410
Cash and Cash investments:
At beginning of year 1,148,733 967,196 521,786
___________ ___________ ___________
At end of year $ 1,428,059 $ 1,148,733 $ 967,196
___________ ___________ ___________
___________ ___________ ___________
Supplemental disclosures of cash flow information:
Cash paid for interest, net of amount capitalized $ 886,239 $ 1,079,939 $ 582,245
___________ ___________ ___________
___________ ___________ ___________
Cash paid for income taxes $ 3,186,861 $ 2,419,600 $ 2,830,861
___________ ___________ ___________
___________ ___________ ___________
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended August 31, 1996, 1995 and 1994
(1) Summary of Significant Accounting Policies
__________________________________________
(a) Basis of Consolidated 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 year's crop totaling
$1,087,921, $1,770,146, and $1,697,547 during fiscal years 1996,
1995 and 1994, 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 and 1996, marketable securities available for
sale are carried at the aggregate estimated fair value of the
portfolio. Aggregate net unrealized investment gains or losses
are recorded net of related deferred taxes in a separate component
of stockholders' equity until realized.
Fair value for debt and equity investments is based on quoted market
prices at the reporting date for those or similar investments.
At August 31, 1994, marketable securities available for sale were
carried at the lower of the aggregate cost or market value of the
portfolio. Aggregate net unrealized investment losses were 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
____________
The Company accounts for income taxes under the asset and liability
method. Under this method, deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply
to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in in-
come in the period that includes the enactment date.
(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 1995 and 1994 have been reclassified to
conform to the 1996 presentation.
(k) Use of Estimates
________________
In preparing the consolidated financial statements, management is
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities. Actual results could differ
significantly from those estimates. Although some variability is
inherent in these estimates, management believes that the amounts
provided are adequate.
(l) Financial Instruments and Accruals
__________________________________
The carrying amounts in the consolidated balance sheets for accounts
receivable, accounts payable and accrued expenses approximate fair
value, because of the immediate or short term maturity of these items.
The carrying amounts reported for the Company's long-term debt approx-
imate fair value, because the instrument is a variable rate note
which reprices frequently.
(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 securities
are carried at estimated fair value. Any unrealized gains and losses,
net of related deferred taxes, are recorded as a net amount in a separate
component of stockholders' equity until realized.
The amortized cost and estimated fair values of marketable securities
available for sale at August 31, 1996 and 1995 (in thousands) were as
follows:
1996 1995
__________________________________________ __________________________________________
Gross Estimated Gross Estimated
Amortized Unrealized Market Amortized Unrealized Market
Cost Gains Losses Value Cost Gains Losses Value
__________ ________ ________ __________ __________ ________ ________ __________
Equity
securities $6,486 $421 $107 $6,800 $3,917 $352 $ 64 $4,205
Debt
securities 2,721 119 14 2,826 5,069 208 71 5,206
______ ____ ____ ______ ______ ____ ____ ______
Marketable
securities
available
for sale $9,207 $540 $121 $9,626 $8,986 $560 $135 $9,411
______ ____ ____ ______ ______ ____ ____ ______
______ ____ ____ ______ ______ ____ ____ ______
At August 31, 1996, debt instruments are collectible as follows: $152,000 within one year, $321,020
between one and five years, $560,249 between five and ten years, and $841,254 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, 1996 and 1995 are as
follows:
1996 1995
______ ______
Mortgage notes receivable on
retail land sales, net $ 448 $ 470
Mortgage notes receivable on bulk land sales 1,735 2,453
Other notes receivable 216 171
______ ______
Total mortgage notes receivable 2,399 3,094
Less current portion 867 865
______ ______
Non-current portion $1,532 $2,229
______ ______
______ ______
At August 31, 1996, substantially all contracts and mortgages on
retail land sales were collectible over periods ranging from 1 to 10
years with expected maturities as follows: $53 thousand in 1997,
$53 thousand in 1998, $50 thousand in 1999, $36 thousand in 2000,
$25 thousand in 2001, and $231 thousand thereafter.
At August 31, 1996, notes receivable, other than those from retail
land sales, were collectible over periods ranging from 1 to 5 years
with expected maturities as follows: $814 thousand in 1997, $1,050
thousand in 1998, $11 thousand in 1999, $11 thousand in 2000, and
$65 thousand in 2001, and none thereafter.
(4) Inventories
___________
A summary of the Company's inventories (in thousands) at August 31,
1996 and 1995 is shown below:
1996 1995
_______ _______
Unharvested fruit crop on trees $ 7,064 $ 6,027
Unharvested sugarcane 2,231 2,138
Beef cattle 3,937 4,429
Sod 53 463
_______ _______
Total inventories $13,285 $13,057
_______ _______
_______ _______
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, 1996 and 1995 is shown below:
Estimated Use-
1996 1995 ful Lives
_______ _______ ___________
Breeding herd $13,184 $12,094 5-7 years
Buildings 3,038 3,035 5-40 years
Citrus trees 20,109 17,846 22-40 years
Sugarcane 2,651 2,142 4-15 years
Equipment and other facilities 24,624 24,256 3-40 years
_______ _______
Total depreciable properties 63,606 59,373
Less accumulated depreciation 27,729 24,953
_______ _______
Net depreciable properties 35,877 34,420
Land and land improvements 33,424 32,330
_______ _______
Net property, buildings
and equipment $69,301 $66,750
_______ _______
_______ _______
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 commercial
banks that permit the Company to borrow up to $3,000,000 which is due on
demand and up to $27,000,000 which is due in January 1998. Under these
agreements, there was no current debt as of August 31, 1996 and 1995. The
total amount of long-term debt under this agreement at August 31, 1996 and
1995 was $20,630,000 and $16,055,000, respectively.
Interest cost expensed and capitalized (in thousands) during the three
years ended August 31, 1996, 1995 and 1994 was as follows:
1996 1995 1994
______ ______ ______
Interest expense $ 990 $1,176 $ 675
Interest capitalized 703 576 359
______ ______ ______
Total interest cost $1,693 $1,752 $1,034
______ ______ ______
______ ______ ______
(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 $223,152, $217,968 and
$248,594 for the years ended August 31, 1996, 1995 and 1994, 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, 1996 and 1995 was $56,088 and $109,973, 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, 1996 and 1995 was $28,029 and
$108,862, respectively.
Pension expenses for the additional retirement benefits were approximately
$191,000, $167,000 and $196,000 for the years ended August 31, 1996, 1995
and 1994, respectively.
(8) Income Taxes
____________
The provision for income taxes (in thousands) for the years ended
August 31, 1996, 1995 and 1994 is summarized as follows:
1996 1995 1994
______ ______ ______
Current:
Federal income tax $1,974 $1,980 $2,172
State income tax 353 322 327
______ ______ ______
2,327 2,302 2,499
______ ______ ______
Deferred:
Federal income tax 48 2,911 1,234
State income tax 5 311 242
______ ______ ______
53 3,222 1,476
______ ______ ______
Total provision for
income taxes $2,380 $5,524 $3,975
______ ______ ______
______ ______ ______
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, 1996, 1995 and
1994:
1996 1995 1994
______ ______ ______
Expected income tax $2,319 $4,918 $3,979
Increase (decrease)
resulting from:
State income taxes, net
of federal benefit 248 525 425
Nontaxable interest
and dividends (174) (180) (181)
Other reconciling
items, net (13) 261 (248)
______ ______ ______
Total provision for
income taxes $2,380 $5,524 $3,975
______ ______ ______
______ ______ ______
(8), Continued
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, 1996 the Company had an unused charitable contribution
carryover totaling $10,235,000. Management estimates that $1,500,000 will
be used to reduce taxable income over the next four 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 contri-
bution 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):
1996 1995
_______ _______
Deferred Tax Assets:
Contribution carryover $(3,851) $(4,081)
Less valuation allowance 3,287 3,291
_______ _______
Net contribution carryover (564) (790)
Beef cattle inventory (136) -
Pension (116) (163)
Other (32) (31)
_______ _______
Total gross deferred
tax assets (848) (984)
_______ _______
(8), Continued
1996 1995
_______ _______
Deferred Tax Liabilities:
Revenue recognized from
citrus and sugarcane 999 546
Unharvested crop inventories 22 362
Deferred revenues 3,134 3,194
Property and equipment
(principally due to
depreciation and soil
and water deductions) 8,208 8,302
Mortgage notes receivable 643 910
Other 291 728
_______ _______
Total gross deferred
tax liabilities 13,297 14,042
_______ _______
Net deferred income
tax liabilities $12,449 $13,058
_______ _______
_______ _______
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.
Partial settlements were made with the Internal Revenue Service during April
of 1995 and June of 1996 for the year ended August 31, 1990. The items conceded
related to the timing of recognition of certain items previously expensed. The
effect of the $385,043 payment made in April 1995 was to increase interest ex-
pense by $124,784 and reduce the current deferred tax liability by $260,259.
The $1,000,000 payment made in June 1996 reduced the current deferred tax lia-
bility by $737,000. Interest totaling $263,000 was recognized for the year
ending August 31, 1996.
(9) Related Party Transactions
__________________________
Citrus
______
Citrus revenues of $20,386,090, $17,398,420 and $16,555,206 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, 1996, 1995 and
1994, 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
$7,758,469 and $5,272,823 at August 31, 1996 and 1995, 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 $6,099,481, $5,732,506, and $5,437,019 for the years
ended August 31, 1996, 1995 and 1994, respectively. In addition, Griffin
provided the harvesting services for citrus sold to an unrelated processor.
The aggregate cost of these services was $767,144, $764,082 and $738,737
for the years ended August 31, 1996, 1995 and 1994, respectively. The
accompanying balance sheets include accounts payable to Griffin for citrus
production, harvesting and processing costs in the amount of $484,789 and
$312,045 at August 31, 1996 and 1995, 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 $5,535,086, $4,190,784 and $3,282,467 during the years
ended August 31, 1996, 1995 and 1994, 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, which are subject
to risk including market prices, weather conditions and environmental concerns.
The Company is also engaged in retail land sales and, from time to time, sells
real estate considered surplus to its operating needs. Information about the
Company's operations (in thousands) for the years ended August 31, 1996, 1995
and 1994 is summarized as follows:
1996 1995 1994
________ ________ ________
Revenues:
Agriculture:
Citrus $ 22,966 $ 19,674 $ 18,796
Sugarcane 5,851 6,026 6,839
Ranch 3,796 2,952 5,518
________ ________ ________
Total agriculture 32,613 28,652 31,153
Real estate 551 8,026 4,268
General corporate revenue 2,925 2,893 3,081
________ ________ ________
Consolidated total $ 36,089 $ 39,571 $ 38,502
________ ________ ________
________ ________ ________
Operating income (loss):
Agriculture:
Citrus $ 7,584 $ 5,412 $ 5,425
Sugarcane 1,704 1,760 2,117
Ranch (1,633) 506 1,669
________ ________ ________
Total agriculture 7,655 7,678 9,211
Real estate 56 7,585 3,725
General corporate revenue 2,925 2,893 3,082
________ ________ ________
Total operating income 10,636 18,156 16,018
Interest expense (990) (1,176) (675)
General corporate expenses (2,826) (2,514) (3,640)
________ ________ ________
Income before income taxes
and cumulative effect $ 6,820 $ 14,466 $ 11,703
________ ________ ________
________ ________ ________
1996 1995 1994
________ ________ ________
Capital expenditures:
Agriculture:
Citrus $ 2,734 $ 4,301 $ 3,977
Sugarcane 967 743 540
Ranch 2,786 2,189 2,064
Sod 54 78 14
Farm lands 365 155 294
Heavy equipment 89 574 569
________ ________ ________
Total agriculture 6,995 8,040 7,458
General corporate 147 300 166
________ ________ ________
Consolidated total $ 7,142 $ 8,340 $ 7,624
________ ________ ________
________ ________ ________
1996 1995 1994
________ ________ ________
Depreciation, depletion and amortization:
Agriculture:
Citrus $ 1,706 $ 1,731 $ 1,524
Sugarcane 925 937 992
Ranch 1,040 1,035 862
Sod 49 81 83
Farm lands 11 5 2
Heavy equipment 311 295 255
________ ________ ________
Total agriculture 4,042 4,084 3,718
General corporate 94 93 165
________ ________ ________
Consolidated total $ 4,136 $ 4,177 $ 3,883
________ ________ ________
________ ________ ________
Identifiable assets:
Agriculture:
Citrus $ 47,874 $ 43,449 $ 40,602
Sugarcane 22,846 22,154 22,557
Ranch 13,710 12,619 9,354
Sod 247 1,474 1,380
Farm lands 1,240 887 736
Heavy equipment 1,461 1,699 1,503
________ ________ ________
Total agriculture 87,378 82,282 76,132
Real estate 10,177 10,417 9,719
General corporate 16,949 16,308 16,334
________ ________ ________
Consolidated total $114,504 $109,007 $102,185
________ ________ ________
________ ________ ________
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, 1996 and August 31, 1995, is as follows:
Quarters Ended
November 30, Feb. 29, Feb. 28, May 31, August 31,
1995 1994 1996 1995 1996 1995 1996 1995
_______ _______ _______ _______ _______ _______ _______ _______
Revenue:
Citrus $ 4,170 $ 3,447 $ 7,133 $ 6,803 $8,721 $ 6,104 $ 2,942 $ 3,320
Sugarcane 1,386 1,162 4,022 3,861 355 848 88 155
Ranch 1,535 611 196 329 1,533 1,210 532 802
Property sales 17 20 80 17 91 61 363 7,928
Interest 352 246 260 274 234 238 187 240
Other revenues 364 390 429 372 506 604 593 529
_______ _______ ________ _______ _______ _______ _______ _______
Total revenue 7,824 5,876 12,120 11,656 11,440 9,065 4,705 12,974
_______ _______ _______ _______ _______ _______ _______ _______
Costs and expenses:
Citrus 3,375 3,141 5,631 5,153 5,090 4,633 1,286 1,335
Sugarcane 1,051 792 3,147 2,960 - 486 (51) 28
Ranch 1,529 447 144 192 3,198 975 558 832
Interest 136 219 173 318 487 407 194 232
Other 748 638 866 650 585 642 1,122 1,025
_______ _______ _______ _______ _______ _______ _______ _______
Total costs and
expenses 6,839 5,237 9,961 9,273 9,360 7,143 3,109 3,452
_______ _______ _______ _______ _______ _______ _______ _______
Income before
income taxes 985 639 2,159 2,383 2,080 1,922 1,596 9,522
Provision for
income taxes 338 218 759 843 857 695 427 3,768
_______ _______ _______ _______ _______ _______ _______ _______
Net income $ 647 $ 421 $ 1,400 $ 1,540 $ 1,223 $ 1,227 $ 1,169 $ 5,754
_______ _______ _______ _______ _______ _______ _______ _______
_______ _______ _______ _______ _______ _______ _______ _______
Net income
per share $ .09 $ .06 $ .20 $ .22 $ .17 $ .17 $ .17 .82
_______ _______ _______ _______ _______ _______ _______ _______
_______ _______ _______ _______ _______ _______ _______ _______
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 4, 1996.
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 4, 1996.
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, 1996 and 1995
Consolidated Statements of Operations - For the Years Ended
August 31, 1996, 1995 and 1994
Consolidated Statements of Stockholders' Equity - For the
Years Ended August 31, 1996, 1995 and 1994
Consolidated Statements of Cash Flows - For the Years Ended
August 31, 1996, 1995 and 1994
(a)2. Financial Statement Schedules:
_____________________________
Selected Quarterly Financial Data - For the Years Ended
August 31, 1996 and 1995 - Included in Part II, Item 8
Schedule I - Marketable Securities and Other Investments -
For Year Ended August 31, 1996
Schedule V - Property, Plant and Equipment - For the Years
Ended August 31, 1996, 1995 and 1994
Schedule VI - Reserves for Depreciation, Depletion and
Amortization of Property, Plant and Equipment - For the
Years Ended August 31, 1996, 1995 and 1994
Schedule IX - Supplementary Income Statement Information -
For the Years Ended August 31, 1996, 1995 and 1994
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 18, 1995 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, 1996
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 $1,722,523 $1,710,238 $1,817,093 $1,817,093
Mutual Funds 2,731,987 2,731,987 2,903,204 2,903,204
Preferred Stocks 91,100 2,472,839 2,506,633 2,506,633
Common Stocks 40,232 2,139,853 2,246,345 2,246,345
Other Investments 151,375 152,750 152,750
__________ __________ __________
Total: $9,206,292 $9,626,025 $9,626,025
__________ __________ __________
__________ __________ __________
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 the Year Ended August 31, 1996
__________________________________
Land $14,409,797 $ 133,396 $ 38,277 $ $14,504,916
Roads 489,213 256,312 745,525
Agricultural Land Preparation 9,906 9,906
Forest Improvements 100,026 100,026
Pasture Improvements 2,363,419 434,194 3,708 * 2,801,321
Buildings 3,034,835 82,938 80,198 3,037,575
Feeding and Watering Facilities
for Cattle Herd 36,486 419 36,067
Water Control Facilities 871,337 871,337
Fences 228,811 47,066 5,744 270,133
Cattle Pens 155,219 20,264 134,955
Citrus Groves, Including
Irrigation Systems 36,176,961 2,573,697 116,004 38,634,654
Equipment 6,815,062 328,372 143,471 6,999,963
Breeding Herd 12,094,179 2,165,878 1,075,766 13,184,291
Sugarcane-Land Prep.,Etc. 12,907,640 715,188 681,658 * 14,304,486
Sod-Land Preparation,Etc. 1,118,258 44,615 335,585 (685,366)* 141,922
Farm Land Preparation 892,218 360,158 1,252,376
___________ __________ __________ ___________ ___________
$91,703,367 $7,141,814 $1,815,728 $ 0 $97,029,453
___________ __________ __________ ___________ ___________
___________ __________ __________ ___________ ___________
* Reclassification
(/TABLE>
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 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 of Income Retirements Describe Period
___________ _________ _____________ _____________ _____________ ___________
For the Year Ended August 31, 1996
__________________________________
Buildings $ 1,092,981 $ 139,665 $ 80,198 $ $ 1,152,448
Feeding and Watering Facilities
for Cattle Herd 21,741 2,722 419 24,044
Water Control Facilities 866,000 866,000
Fences 96,330 21,430 5,744 112,016
Cattle Pens 49,676 13,951 20,265 43,362
Citrus Groves, Including
Irrigation Systems 9,002,178 1,303,376 116,003 10,189,551
Equipment 3,329,601 904,448 127,171 4,106,878
Breeding Herd 7,559,946 867,887 909,077 7,518,756
Roads 0 10,731 10,731
Sugarcane-Land Prep.,Etc. 2,752,281 827,397 104,056 * 3,683,734
Sod-Land Preparation,Etc. 174,201 33,524 101,615 (104,056)* 2,054
Farm Land Preparation 8,151 11,202 19,353
___________ __________ __________ _________ ___________
$24,953,086 $4,136,333 $1,360,492 $ 0 $27,728,927
___________ __________ __________ _________ ___________
___________ __________ __________ _________ ___________
* Reclassification
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 IX
____________
SUPPLEMENTARY INCOME STATEMENT INFORMATION
__________________________________________
____________________________________________________________________________________________________
COLUMN A COLUMN B
____________________________________________________________________________________________________
Charged to Costs and Expenses
_____________________________
Years Ended August 31,
______________________
Item 1996 1995 1994
____ ____ ____ ____
1. Maintenance and repairs $ 858,253 $ 948,602 $ 916,433
2. Taxes, other than payroll
and income taxes 1,476,159 1,539,544 1,794,973
EXHIBIT 11
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of August 31, 1996:
Number of shares outstanding at August 31, 1995 7,027,827
_________
_________
Number of shares outstanding at August 31, 1996 7,027,827
_________
_________
Weighted Average 9/1/95 - 8/31/96 7,027,827
_________
_________
EXHIBIT 12
ALICO, INC.
Computation of Ratios:
1995 Current Assets $31,735,862
Current Liabilities 5,656,454
31,735,862 divided by 5,656,454 = 5.61:1
1996 Current Assets $34,876,632
Current Liabilities 5,114,866
34,876,632 divided by 5,114,866 = 6.82:1
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 1, 1996 Ben Hill Griffin, III
Date President, Chief Executive
Officer and Director
(Signature)
November 1, 1996 W. Bernard Lester
Date Executive Vice President,
Chief Operating Officer and
Director
(Signature)
November 1, 1996 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 1, 1996
Date