| Segment Information |
Note 15. Segment Information
The Company has six reportable segments: Bowen Brothers Fruit, LLC, Citrus Groves, Sugarcane, Cattle, Real Estate and Leasing. All of the Company's operations are located in the State of Florida. Intersegment sales and transfers are accounted by the Company as if the sales or transfers were to third parties at current market prices.
Agricultural Segments:
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• |
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Bowen operations include supply chain management services citrus for both Alico and other growers citrus fruit. Bowen's operations also include the purchase and resale of citrus fruit. |
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• |
|
Citrus Grove operations consist of cultivating citrus trees in order to produce citrus fruit for delivery to fresh and processed citrus markets. |
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• |
|
Sugarcane operations consist of cultivating sugarcane for sale to a sugar processor. |
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• |
|
Cattle operations primarily include the production of beef cattle and the raising of replacement heifers. |
Goods and services produced by these segments are sold to wholesalers and processors in the United States who prepare the products for consumption.
Nonagricultural Segments
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• |
|
The Real Estate segment, operated on behalf of Alico by ALDI, is engaged in the planning and strategic positioning of all Company owned land, which includes seeking entitlement of the land assets in order to preserve rights to develop the property in the future and negotiating and/or renegotiating sales contracts. |
| |
• |
|
The Leasing segment leases land to others on a tenant-at-will basis for grazing, farming, oil and mineral exploration and recreational uses. |
The accounting policies of the segments are the same as those described in Note 2, Basis of Presentation and Summary of Significant Accounting Policies. Total revenues represent sales to unaffiliated customers, as reported in the Company's Consolidated Statements of Operations. All intercompany transactions have been eliminated.
The Company's reportable segments are strategic business units that offer different products and services. They are managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company evaluates the segments performance based on direct margins from operations before general and administrative costs, interest expense and income taxes not including nonrecurring gains and losses.
Information by business segment is as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year ended September 30 |
|
| |
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
Revenues (from external customers except as noted): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bowen |
|
$ |
36,115 |
|
|
$ |
28,896 |
|
|
$ |
27,998 |
|
|
Intersegment sales through Bowen |
|
|
9,679 |
|
|
|
7,900 |
|
|
|
8,374 |
|
|
Citrus Groves |
|
|
47,088 |
|
|
|
36,469 |
|
|
|
36,030 |
|
|
Sugarcane |
|
|
7,796 |
|
|
|
4,097 |
|
|
|
7,624 |
|
|
Cattle |
|
|
4,613 |
|
|
|
4,035 |
|
|
|
8,201 |
|
|
Real Estate |
|
|
— |
|
|
|
— |
|
|
|
1,372 |
|
|
Land leasing and rentals |
|
|
2,432 |
|
|
|
2,357 |
|
|
|
2,691 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from segments |
|
|
107,723 |
|
|
|
83,754 |
|
|
|
92,290 |
|
|
Other operations (c) |
|
|
548 |
|
|
|
3,938 |
|
|
|
5,612 |
|
|
Less: intersegment revenue eliminated |
|
|
(9,679 |
) |
|
|
(7,900 |
) |
|
|
(8,374 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenue |
|
$ |
98,592 |
|
|
$ |
79,792 |
|
|
$ |
89,528 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bowen |
|
$ |
35,109 |
|
|
$ |
28,169 |
|
|
$ |
26,660 |
|
|
Intersegment sales through Bowen |
|
|
9,679 |
|
|
|
7,900 |
|
|
|
8,374 |
|
|
Citrus Groves |
|
|
27,764 |
|
|
|
25,730 |
|
|
|
27,299 |
|
|
Sugarcane |
|
|
6,834 |
|
|
|
3,707 |
|
|
|
9,809 |
|
|
Cattle (a) |
|
|
3,178 |
|
|
|
3,772 |
|
|
|
10,161 |
|
|
Real Estate (b) |
|
|
585 |
|
|
|
1,610 |
|
|
|
5,265 |
|
|
Land leasing and rentals |
|
|
1,220 |
|
|
|
1,103 |
|
|
|
1,117 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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|
Segment operating expenses |
|
|
84,369 |
|
|
|
71,991 |
|
|
|
88,685 |
|
|
Other operations (c) |
|
|
469 |
|
|
|
5,778 |
|
|
|
7,379 |
|
|
Less: intersegment expenses eliminated |
|
|
(9,679 |
) |
|
|
(7,900 |
) |
|
|
(8,374 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
$ |
75,159 |
|
|
$ |
69,869 |
|
|
$ |
87,690 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bowen |
|
$ |
1,006 |
|
|
$ |
727 |
|
|
$ |
1,338 |
|
|
Citrus Groves |
|
|
19,324 |
|
|
|
10,739 |
|
|
|
8,731 |
|
|
Sugarcane |
|
|
962 |
|
|
|
390 |
|
|
|
(2,185 |
) |
|
Cattle |
|
|
1,435 |
|
|
|
263 |
|
|
|
(1,960 |
) |
|
Real Estate |
|
|
(585 |
) |
|
|
(1,610 |
) |
|
|
(3,893 |
) |
|
Land leasing and rentals |
|
|
1,212 |
|
|
|
1,254 |
|
|
|
1,574 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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|
Gross Profit from segments |
|
|
23,354 |
|
|
|
11,763 |
|
|
|
3,605 |
|
|
Other operations |
|
|
79 |
|
|
|
(1,840 |
) |
|
|
(1,767 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
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Gross profit |
|
$ |
23,433 |
|
|
$ |
9,923 |
|
|
$ |
1,838 |
|
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|
|
|
|
|
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|
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|
| (a) |
Includes an impairment charge of $0.8 million in 2009. |
| (b) |
Includes impairments charges of $1.0 million and $4.3 million in 2010 and 2009, respectively. |
| (c) |
Includes sod, plants and trees, rock and sand royalties and vegetables (2010 and 2009). |
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|
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Year ended September 30 |
|
| |
|
2011 |
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|
2010 |
|
|
2009 |
|
|
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bowen |
|
$ |
65 |
|
|
$ |
373 |
|
|
$ |
73 |
|
|
Citrus Groves |
|
|
2,102 |
|
|
|
1,273 |
|
|
|
1,551 |
|
|
Sugarcane |
|
|
4,633 |
|
|
|
3,586 |
|
|
|
2,186 |
|
|
Cattle |
|
|
1,214 |
|
|
|
1,260 |
|
|
|
1,154 |
|
|
Real Estate |
|
|
583 |
|
|
|
1,096 |
|
|
|
708 |
|
|
Land leasing and rentals |
|
|
16 |
|
|
|
62 |
|
|
|
65 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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Segment capital expenditures |
|
|
8,613 |
|
|
|
7,650 |
|
|
|
5,737 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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Other capital expenditures |
|
|
3,652 |
|
|
|
553 |
|
|
|
968 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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|
Total capital expenditures |
|
$ |
12,265 |
|
|
$ |
8,203 |
|
|
$ |
6,705 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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|
Depreciation, depletion and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bowen |
|
$ |
213 |
|
|
$ |
315 |
|
|
$ |
358 |
|
|
Citrus Groves |
|
|
1,977 |
|
|
|
2,021 |
|
|
|
2,127 |
|
|
Sugarcane |
|
|
2,873 |
|
|
|
1,713 |
|
|
|
1,498 |
|
|
Cattle |
|
|
937 |
|
|
|
1,292 |
|
|
|
1,643 |
|
|
Real Estate |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Land leasing and rentals |
|
|
481 |
|
|
|
546 |
|
|
|
621 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment depreciation, depletion and amortization |
|
|
6,481 |
|
|
|
5,888 |
|
|
|
6,247 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other depreciation, depletion and amortization |
|
|
846 |
|
|
|
1,333 |
|
|
|
1,297 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization |
|
$ |
7,327 |
|
|
$ |
7,221 |
|
|
$ |
7,544 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
September 30 |
|
| |
|
2011 |
|
|
2010 |
|
|
Total assets: |
|
|
|
|
|
|
|
|
|
Bowen |
|
$ |
2,888 |
|
|
$ |
3,032 |
|
|
Citrus Groves |
|
|
45,554 |
|
|
|
46,244 |
|
|
Sugarcane |
|
|
53,213 |
|
|
|
47,529 |
|
|
Cattle |
|
|
6,241 |
|
|
|
12,314 |
|
|
Real Estate (d) |
|
|
12,932 |
|
|
|
6,706 |
|
|
Land leasing and rentals |
|
|
5,524 |
|
|
|
4,019 |
|
| |
|
|
|
|
|
|
|
|
|
Segment assets |
|
|
126,352 |
|
|
|
119,844 |
|
|
Other assets |
|
|
53,683 |
|
|
|
68,973 |
|
| |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
180,035 |
|
|
$ |
188,817 |
|
| |
|
|
|
|
|
|
|
|
| (d) |
Includes $6.6 million for a foreclosed parcel of property See Note 7, Property, Building and Equipment. | |