UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
__X__ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For six months ended February 28, 2001.
OR
_____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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 of organization) Identification No.)
P. O. Box 338, La Belle, FL 33975
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 863/675-2966
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 the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
There were 7,031,625 shares of common stock, par value $1.00 per share,
outstanding at April 12, 2001.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - See Accountants' Review Report)
Three Months Ended Six Months Ended
Feb. 28, 2001 Feb. 29, 2000 Feb. 28, 2001 Feb. 29, 2000
_____________ _____________ _____________ ______________
Revenue:
Citrus $10,421,372 $ 9,169,863 $ 11,516,991 $ 10,872,427
Sugarcane 6,303,311 5,021,040 9,241,521 6,472,180
Ranch 951,472 582,446 5,751,244 3,569,264
Rock products
and sand 412,213 333,432 833,858 682,272
Oil lease and
land rentals 167,860 193,876 372,600 607,012
Forest products 576 12,168 28,283 45,416
Profit on sales of
real estate 1,025,459 132,003 1,220,723 12,991,854
Interest and
investment income 229,659 1,565,781 731,581 2,335,453
Other 51,251 10,628 141,856 10,455
___________ ___________ ____________ __________
Total revenue 19,563,173 17,021,237 29,838,657 37,586,333
___________ ___________ ____________ ____________
Cost and expenses:
Citrus production,
harvesting and
marketing 9,424,949 8,527,121 10,260,103 9,602,576
Sugarcane production
and harvesting 5,056,250 4,452,486 7,292,628 5,875,186
Ranch 918,405 523,905 5,233,684 3,423,473
Real estate expenses 84,003 118,464 182,351 287,818
Interest 979,890 777,157 1,708,700 1,409,556
Other, general and
administrative 1,165,033 725,944 2,046,407 1,321,829
___________ ___________ ___________ __________
Total costs and
expenses 17,628,530 15,125,077 26,723,873 21,920,438
___________ ___________ ____________ ___________
Income before
income taxes 1,934,643 1,896,160 3,114,784 15,665,895
Provision for
income taxes 643,777 643,575 1,019,174 5,801,939
___________ ___________ ____________ ___________
Net income 1,290,866 1,252,585 2,095,610 9,863,956
___________ ___________ ____________ ___________
___________ ___________ ____________ ___________
Weighted average number of shares
outstanding 7,027,827 7,027,827 7,027,827 7,027,827
___________ ___________ ____________ ___________
___________ ___________ ____________ ___________
Per share amounts:
Basic and diluted $ .18 $ .18 $ .30 $ 1.40
Dividends $ - $ - $ 1.00 $ .30
See accompanying Notes to Condensed Consolidated Financial Statements.
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
February 28, 2001 August 31, 2000
(Unaudited)
_________________ _______________
ASSETS
Current assets:
Cash and cash investments $ 2,489,053 $ 1,796,428
Marketable Securities 18,428,247 18,055,099
Accounts receivable 10,392,243 11,954,721
Mortgage and notes receivable 2,544,976 2,509,034
Inventories 17,243,833 21,915,039
Other current assets 393,641 348,062
____________ ____________
Total current assets 51,491,993 56,578,383
Notes receivable, non-current 7,553,043 7,334,579
Land held for development and sale 7,502,494 7,147,937
Investments 1,163,388 959,252
Property, buildings and equipment 137,747,147 136,822,381
Less: Accumulated depreciation (33,002,429) (31,966,492)
____________ ____________
Total assets $172,455,636 $176,876,040
____________ ____________
____________ ____________
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
(Continued)
February 28, 2001 August 31, 2000
(Unaudited)
LIABILITIES _________________ _______________
Current liabilities:
Accounts payable $ 1,367,540 $ 2,429,242
Due to profit sharing plan 0 429,784
Accrued ad valorem taxes 374,360 1,780,807
Current portion of notes payable 1,298,890 1,298,890
Accrued expenses 1,187,928 988,011
Income taxes payable 1,290,946 4,169,517
Deferred income taxes 895,833 1,250,026
____________ ____________
Total current liabilities 6,415,497 12,346,277
Deferred revenue 9,652,407 9,540,000
Notes payable 46,782,766 40,302,855
Deferred income taxes 10,592,354 10,889,095
Deferred retirement benefits 350,502 252,809
____________ ____________
Total liabilities 73,793,526 73,331,036
____________ ____________
STOCKHOLDERS' EQUITY
Common stock $ 7,027,827 $ 7,027,827
Additional paid in capital 104,354 17,885
Accumulated other comprehensive income 1,122,299 1,159,445
Retained earnings 90,407,630 95,339,847
____________ ____________
Total stockholders' equity 98,662,110 103,545,004
____________ ____________
Total liabilities and
stockholders' equity $172,455,636 $176,876,040
____________ ____________
____________ ____________
See accompanying Notes to Condensed Consolidated Financial Statements.
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(See Accountants' Review Report)
Accumulated
Common Stock Other Additional
Shares Retained Comprehensive Paid in
Issued Amount Earnings Income Capital Total
_________ _________ __________ _______ _________ _______
Balances,
August 31, 1999 7,027,827 $7,027,827$83,337,579 $1,029,953 - $91,395,359
_______________
Comprehensive income:
Net income for
the year ended
August 31, 2000 - - 14,110,616 - - 14,110,616
Unrealized gains
on securities,
net of taxes - - - 129,492 - 129,492
and reclassification
adjustment __________
Total comprehensive income 14,240,108
Dividends paid - - (2,108,348) - - (2,108,348)
Stock based compensation - - - - $17,885 17,885
_________ _______ ___________ ________ ________ __________
Balances,
August 31, 2000 7,027,827$7,027,827 $95,339,847$1,159,445$17,885 $103,545,004
_______________
Comprehensive income:
Net income for
the six months ended
February 28, 2001 - - 2,095,610 - - 2,095,610
Unrealized gains on
securities, net of
taxes and - - - (37,146) - (37,146)
reclassification
adjustment
___________
Total comprehensive income 2,058,464
Dividends paid - - (7,027,827) - - (7,027,827)
Stock based compensation - - - - $86,469 86,469
________ _________ ___________ ________ ________ __________
Balances,
February 28, 2001
(Unaudited) 7,027,827 $7,027,827$90,407,630$1,122,299$104,354 $98,662,110
_________ __________ __________ ________ ________ __________
_________ __________ __________ ________ ________ __________
February 28, August 31,
2001 2000
(Unaudited)
Disclosure of reclassification amount: ____________ ___________
Unrealized holding gains (losses)
arising during the period $(552,477) $2,176,940
Less: reclassification adjustment
for gains (losses) included
in net income (515,331) 2,047,448
_________ __________
Net unrealized gains (losses) on securities $ (37,146) $ 129,492
_________ __________
_________ __________
See accompanying Notes to Condensed Consolidated Financial Statements.
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - See Accountants' Review Report)
Six Months Ended February 28,
2001 2000
_______________________________
Cash flows from operating activities:
Net income $ 2,095,610 $9,863,956
Adjustments to reconcile net income to cash
provided from (used for) operating activities:
Depreciation and amortization 3,470,493 2,747,779
Net decrease in current assets and
liabilities 1,528,714 1,197,886
Deferred income taxes (628,525) 3,711,525
Gain on sales of real estate (1,038,372) (12,991,854)
Other (318,693) (202,236)
__________ __________
Net cash provided from
operating activities 5,109,227 4,327,056
__________ __________
Cash flows from (used for) investing activities:
Purchases of property and equipment (4,719,030) (6,642,920)
Proceeds from sales of real estate 692,676 4,141,731
Proceeds from sales of property and equipment 880,351 309,712
Purchases of marketable securities (1,558,796) (1,024,602)
Proceeds from sales of marketable securities 1,090,519 553,895
__________ __________
Net cash used for
investing activities (3,614,280) (2,662,184)
__________ __________
Cash flows from (used for) financing activities:
Notes receivable collections (254,406) 38,074
Repayment of bank loan (24,038,916) (16,201,724)
Proceeds from bank loan 30,518,827 16,643,391
Dividends paid (7,027,827) (2,108,348)
__________ __________
Net cash used for
financing activities (802,322) (1,628,607)
__________ __________
Net increase in cash and
cash investments $ 692,625 $ 36,265
__________ __________
__________ __________
Cash at beginning of period 1,796,428 740,829
__________ __________
__________ __________
Cash at end of period 2,489,053 777,094
__________ __________
__________ __________
Supplemental disclosures of cash flow information:
Cash paid for interest, net of
amount capitalized $1,857,944 $1,560,086
__________ __________
__________ __________
Cash paid for income taxes $4,291,269 $ 383,817
__________ __________
__________ __________
Non-cash investing and financing activities:
Mortgage and notes receivable issued in
exchange for land, less unamortized
discount $ -0- $11,511,190
___________ __________
___________ __________
Fair value adjustments to securities
available for sale $ (59,557) $ 444,520
__________ __________
__________ __________
Income tax effect related to fair
value adjustment $ 22,411 $ 166,926
__________ __________
__________ __________
See accompanying Notes to Condensed Consolidated Financial Statements.
ALICO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(See Accountants' Review Report)
1. Basis of financial statement presentation:
The accompanying condensed consolidated financial statements include the
accounts of Alico, Inc. and its wholly owned subsidiaries, Saddlebag Lake
Resorts, Inc. (Saddlebag) and Agri-Insurance Company, Ltd. (Agri),
after elimination of all significant intercompany balances and transactions.
The accompanying unaudited condensed consolidated financial statements have
been prepared on a basis consistent with the accounting principles and policies
reflected in the Company's annual report for the year ended August 31, 2000.
In the opinion of Management, the accompanying unaudited condensed consolidated
financial statements contain all adjustments (consisting only of normal recur-
ring accruals) necessary for a fair presentation of its consolidated financial
position at February 28, 2001 and August 31, 2000 and the consolidated results
of operations and cash flows for the three and six months ended February 28,
2001 and February 29, 2000.
The basic business of the Company is agriculture which is of a seasonal nature
and subject to the influence of natural phenomena and wide price fluctuations.
Fluctuation in the market prices for citrus fruit has caused the Company to
recognize additional revenue from the prior year's crop totaling $280,758 in
2001 and $1,839,642 in 2000. The results of operations for the stated periods
are not necessarily indicative of results to be expected for the full year.
2. Real Estate:
Real Estate sales are recorded under the accrual method of accounting.
Under this method, a sale is not recognized until payment is received,
including interest, aggregating 10% of the contract sales price for
residential properties and 20% for commercial properties.
3. Mortgage and notes receivable:
Mortgage and notes receivable arose from real estate sales. The balances at
February 28, 2001 and August 31, 2000 are as follows:
February 28, August 31,
2001 2000
____________ __________
Mortgage notes receivable
on retail land sales $ 238,019 $ 238,417
Mortgage notes receivable
on bulk land sales 9,540,000 9,540,000
Other notes receivable 320,000 65,196
____________ __________
Total mortgage notes receivable $ 10,098,019 $ 9,843,613
Less current portion 2,544,976 2,509,034
____________ __________
Non-current portion $ 7,553,043 $7,334,579
____________ __________
____________ __________
In July 2000, the Company received a mortgage note in exchange for land sold.
The note totaled $9,540,000 and principal payments of $2,385,000 are due
annually on July 14, bearing interest at the LIBOR, over the next four years.
4. Inventories:
A summary of the Company's inventories (in thousands) is shown below:
February 28, August 31,
2001 2000
____________ ___________
Unharvested fruit crop on trees $ 8,661,770 $ 9,160,234
Unharvested sugarcane 2,134,993 5,095,514
Beef cattle 6,232,666 7,469,897
Sod 214,404 189,394
____________ ___________
Total inventories $ 17,243,833 $21,915,039
____________ ___________
____________ ___________
Subject to prevailing market conditions, the Company may hedge a portion of
its beef inventory by entering into cattle futures contracts to reduce
exposure to changes in market prices. Any gains or losses anticipated under
these agreements were deferred, with the cost of the related cattle being
adjusted when the contracts are settled. As discussed in the Company's
first quarter 10-Q, effective September 1, 2000, gains and losses under these
agreements are recognized as incurred. The Company recorded losses under
these agreements for the three months ended February 28, 2001 totaling
$38,000.
5. Income taxes:
The provision for income taxes for the quarters and six months ended February
28, 2001 and February 29, 2000 is summarized as follows:
Three Months Ended Six Months Ended
Feb. 28, 2001 Feb. 29, 2000 Feb. 28, 2001 Feb. 29, 2000
_____________ _____________ _____________ ______________
Current:
Federal income tax $ 842,581 $1,137,366 $1,395,355 $1,829,848
State income tax 163,895 139,780 252,344 260,566
_____________ _____________ _____________ ______________
1,006,476 1,277,146 1,647,699 2,090,414
_____________ _____________ _____________ ______________
Deferred:
Federal income tax (308,573) (555,221) (535,546) 3,154,796
State income tax (54,126) (78,350) (92,979) 556,729
_____________ _____________ _____________ ______________
(362,699) (633,571) (628,525) 3,711,525
_____________ _____________ _____________ ______________
Total provision for
income taxes $ 643,777 $ 643,575 $1,019,174 $5,801,939
_____________ _____________ _____________ ______________
_____________ _____________ _____________ ______________
Following is a reconciliation of the expected income tax expense computed at
the U.S. Federal statutory rate of 34% and the actual income tax provision for
the quarters and six months ended February 28, 2001 and February 29, 2000:
Three Months Ended Six Months Ended
Feb. 28, 2001 Feb. 29, 2000 Feb. 28, 2001 Feb. 29, 2000
_____________ _____________ _____________ ______________
Expected income tax $ 657,779 $ 644,695 $ 1,059,027 $ 5,326,404
Increase (decrease)
resulting from:
State income taxes, net
of federal benefit 71,581 41,236 103,754 539,415
Nontaxable interest and
dividends (31,606) (31,052) (64,026) (57,788)
Tax exempt income from
Agri-Insurance
Co, Ltd (133,585) -0- (133,585) -0-
Other reconciling items,
net (20,392) (11,304) 54,004 (6,092)
____________ ____________ ____________ ___________
Total provision for
income taxes $ 643,777 $ 643,575 $ 1,019,174 $ 5,801,939
____________ _____________ ____________ ___________
____________ _____________ ____________ ____________
6. Indebtedness:
The Company has financing agreements with commercial banks that permit the
Company to borrow up to $44 million. The financing agreements allow the
Company to borrow up to $41 million which is due in 2002 and up to $3 million
which is due on demand. In March 1999, the Company mortgaged 7,680 acres for
$19 million in connection with a $22.5 million acquisition of producing citrus
and sugarcane operations. The total amount of long-term debt under these
agreements at February 28, 2001 and August 31, 2000 was $46,782,766 and
$40,302,855, respectively.
Maturities of the indebtedness of the Company over the next five years are as
follows: 2001- $1,298,890; 2002- $32,479,973; 2003- $1,303,559;
2004- $1,306,142; 2005- $1,308,905; thereafter $10,384,187.
Interest cost expensed and capitalized during the six months ended
February 28, 2001 and February 29, 2000 was as follows:
2001 2000
________ ________
Interest expensed $1,708,700 $1,409,556
Interest capitalized 109,909 228,667
________ ________
Total interest cost $1,818,609 $1,638,223
________ ________
________ ________
7. Dividends:
On October 3, 2000 the Company declared a year-end dividend of $1.00 per
share, which was paid on October 27, 2000.
8. Disclosures about reportable segments:
Alico, Inc. has four reportable segments: citrus, sugarcane, ranching and
general corporate. The commodities produced by these segments are sold to
wholesalers and processors who prepare the products for consumption. The
Company's operations are located in Florida.
The accounting policies of the segments are the same as those described in
the summary of significant accounting policies. Alico, Inc. evaluates
performance based on profit or loss from operations before income taxes.
Alico, Inc.'s reportable segments are strategic business units that offer
different products. They are managed separately because each segment
requires different management techniques, knowledge and skills.
The following table presents information for each of the Company's operating
segments as of and for the six months ended February 28, 2001:
____________________________________________________________
General Consolidated
Citrus Sugarcane Ranch Corporate* Total
____________________________________________________________
Revenue $ 11,516,991 9,241,521 5,751,244 3,328,901 29,838,657
Costs and
expenses 10,260,103 7,292,628 5,233,684 3,937,458 26,723,873
Depreciation and
amortization 1,243,000 1,256,219 718,639 252,635 3,470,493
Segment profit 1,256,888 1,948,893 517,560 (608,557) 3,114,784
Segment assets 54,845,676 51,831,962 20,407,345 45,370,653 172,455,636
The following table presents information for each of the Company's operating
segments as of and for the six months ended February 29, 2000:
____________________________________________________________
General Consolidated
Citrus Sugarcane Ranch Corporate* Total
____________________________________________________________
Revenue $ 10,872,427 6,472,180 3,569,264 16,672,462 37,586,333
Costs and
expenses 9,602,576 5,875,186 3,423,473 3,019,203 21,920,438
Depreciation and
amortization 1,214,698 992,681 288,922 251,478 2,747,779
Segment profit 1,269,851 596,994 145,791 13,653,259 15,665,895
Segment assets 56,030,620 49,794,338 20,969,288 40,175,563 166,969,809
*Consists of rents, investments, real estate activities and other such
items of a general corporate nature.
9. Stock Option Plan
On November 3, 1998, the Company adopted the Alico, Inc., Incentive Equity
Plan (The Plan) pursuant to which the Board of Directors of the Company may
grant options, stock appreciation rights, and/or restricted stock to certain
directors and employees. The Plan authorizes grants of shares or options to
purchase up to 650,000 shares of authorized but unissued common stock. Stock
options granted have vesting schedules which are at the discretion of the
Board of Directors and determined on the effective date of the grant.
Weighted
Weighted average
average remaining
exercise contractual
Shares price Life (in years)
_______ _________ _______________
Balance outstanding,
August 31, 2000 49,692 14.62 10
_______________
Granted 51,074 14.62 _______________
_______ _________
Balance outstanding,
February 28, 2001 100,766 14.62
_______ _________
_______ _________
On February 28, 2001, there were 49,692 shares exercisable and 549,234
shares available for grant.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
LIQUIDITY AND CAPITAL RESOURCES:
Working capital increased to $45,076,496 at February 28, 2001, up from
$44,232,006 at August 31, 2000. As of February 28, 2001, the Company had cash
and cash investments of $2,489,053 compared to $1,796,428 at August 31, 2000.
Marketable securities increased from $18,055,099 to $18,428,247 during the same
period. The ratio of current assets to current liabilities increased to 8.03
to 1 at February 28, 2001 from 4.58 to 1 at August 31, 2000. Total assets
decreased to $172,455,636 at February 28, 2001, compared to $176,876,040 at
August 31, 2000.
In connection with financing agreements with commercial banks (See Note 6 under
Notes to Condensed Consolidated Financial Statements), the Company has an
unused availability of funds of approximately $12.8 million at February 28,
2001.
RESULTS OF OPERATIONS:
The basic business of the Company is agriculture, which is of a seasonal nature
and subject to the influence of natural phenomena and wide price fluctuations.
The results of operations for the stated periods are not necessarily indicative
of results to be expected for the full year.
Net income for the six months ending February 28, 2001 decreased by $7,768,346
when compared to the same period a year ago. ($2,095,610 vs. $9,863,956 for the
six months ended February 28, 2001 and February 29, 2000, respectively). Net
income increased during the three months ended February 28, 2001, compared to
the same period a year ago ($1,290,866 vs. $1,252,585).
Income before income taxes decreased $12,551,111 for the six months ended
February 28, 2001, when compared to the same period a year ago. This was
primarily due to the decrease in earnings from real estate activities
($1,038,372 for the six months ended February 28, 2001 compared to $12,704,036
for the six months ended February 29, 2000).
Earnings from agricultural activities increased from the prior year
($2,276,551 vs. $1,269,837 for the second quarter, and $3,723,341 vs.
$2,012,636 during the first six months of fiscal 2001 and 2000, respectively).
Citrus
______
Citrus earnings increased for the second quarter ($996,423 during fiscal
2001 vs. $642,742 during fiscal 2000) but decreased slightly during the six
months ended February 28, 2001, when compared to the prior year ($1,256,888
during the first half of fiscal 2001 vs. $1,269,851 during the same
period in fiscal 2000). This is largely the result of the recognition of
revenue from the fiscal 1999 fresh fruit crop which was greater than the
comparable amount realized in the second quarter of the current year
($280,758 in the second quarter of fiscal 2001, compared to $758,750 in
the second quarter of fiscal 2000, see Note 1 to the Notes to Condensed
Consolidated Financial Statements).
Sugarcane
_________
Sugarcane earnings increased both for the second quarter ($1,247,061 for
fiscal 2001 vs. $568,554 for fiscal 2000) and the six months ended
February 28, 2001 ($1,948,893 vs. $596,994 for the six months ended
February 29, 2000) Producing acres have increased and, as a result, more
acres are being harvested. The increased yields and market prices continue
to contribute to the improvement.
Ranching
________
Ranch earnings decreased for the second quarter ($33,067 vs. $58,541 for the
three months ended February 28, 2001 and February 29, 2000, respectively)
but increased when compared to a year ago ($517,560 vs. $145,791 for
the six months ended February 28, 2001 and February 29, 2000, respectively).
Increased production and improved market prices for beef are the primary
cause of the improvement.
General Corporate
_________________
The Company is continuing its marketing and permitting activities for its
land which surrounds the Florida Gulf Coast University site.
The Company announced the formation of Agri-Insurance Company, Ltd. (Agri)
a wholly owned subsidiary, during July of 2000. The insurance company has
been capitalized by transferring cash and approximately 6,000 acres of the
Lee County property along with the sales contracts, referred to below. General
and administrative expenses increased $725 thousand, primarily due to the
formation of Agri. Through Agri, the Company expects to be able to underwrite
previously uninsurable risk related to catastrophic crop and other losses.
Additionally, the insurance company will have access to reinsurance markets,
otherwise inaccessible. While Agri has underwritten a modest amount of
coverage (approximately $3.2 million) during August and December of 2000, it
is expected that more significant coverages will be written before the end of
2001.
In December of 1999, the Company entered into a contract to sell
approximately 2,500 acres for $50 million to Naples/Dallas Venture, Inc.
The agreement called for closings to occur on 250 acres per year for 10
years. In January 2001, a third party contracted with the Company
to purchase approximately 2000 additional acres. The purchaser
has assumed the Naples/Dallas contract, combining the two parcels for
a total purchase price of approximately $112 million. The new contract
calls for closings to occur on 450 acres per year for 10 years. The
first closing is expected during fiscal 2003.
During September of 1999, the Company completed a sale of 1,230 acres
of land surrounding the University site in Lee County for $16.5 million.
The contract called for 25 percent of the purchase price to be paid at
closing, with the balance of $12.3 million payable annually over the
next four years. In August of 2000, Agri sold another 488 acres to
Miromar, also near the University, for $10.6 million. In connection
with the sale, they agreed to pay off the $12.3 million mortgage
related to the September 1999 sale and pay 10% of the contract
price for their second purchase at closing. The balance is payable over
the next four years. The first sale generated a pre-tax gain of $13.4
million. The gain related to the second sale has only been recognized
to the extent that 10% of the purchase price has been collected net of
closing costs ($959 thousand). The remainder of the gain and related
mortgage will be recognized upon receipt of 20% of the contract price.
This is expected to occur during August of 2001.
In July of 1999, the Company entered into a contract to sell up to 402
acres near the University to Thomas B. Garlick, a Trustee of Florida
Land Trust 996 for approximately $15.5 million. The contract was
subsequently renegotiated, as provided for in the original agreement, and
calls for the sale of 44 acres for $5 million.
Cautionary Statement
____________________
Readers should note, in particular, that this Form 10-Q contains forward-
looking statements within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), that involve substantial risks
and uncertainties. When used in this document, or in the documents
incorporated by reference herein, the words "anticipate", "believe",
"estimate", "may", "intend" and other words of similar meaning, are likely to
address the Company's growth strategy, financial results and/or product
development programs. Actual results, performance or achievements could differ
materially from those contemplated, expressed or implied by the forward-looking
statements contained herein. The considerations listed herein represent
certain important factors the Company believes could cause such results to
differ. These considerations are not intended to represent a complete list of
the general or specific risks that may effect the Company. It should be
recognized that other risks, including general economic factors and expansion
strategies, may be significant, presently or in the future, and the risks set
forth herein may affect the Company to a greater extent than indicated.
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
No changes
FORM 10-Q
PART II. OTHER INFORMATION
ITEM 6. Exhibits and reports on Form 8-K.
(a) Exhibits:
A. Accountant's Report.
B. Computation of Weighted Average Shares Outstanding at
February 28, 2001.
(b) Reports on Form 8-K.
November 3, 2000
December 7, 2000
December 14, 2000
December 18, 2000
December 21, 2000
March 7, 2001
March 23, 2001
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALICO, INC.
(Registrant)
April 12, 2001 W. Bernard Lester
Date President
Chief Operating Officer
(Signature)
April 12, 2001 L. Craig Simmons
Date Vice President
Chief Financial Officer
(Signature)
April 12, 2001 Deirdre M. Purvis
Date Controller
(Signature)
EXHIBIT A
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
______________________________________
The Stockholders and
Board of Directors
Alico, Inc.:
We have reviewed the condensed consolidated balance sheet of Alico, Inc.
and subsidiaries as of February 28, 2001, and the related condensed
consolidated statements of operations for the three-month and six-month
periods ended February 28, 2001 and February 29, 2000, the condensed
consolidated statements of stockholders' equity for the six-month period
February 28, 2001, and the condensed consolidated statements of cash
flows for the six-month periods ended February 28, 2001 and February 29,
2000. These condensed consolidated financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical review
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express
such an opinion.
Based on our reviews, we are not aware of any material modifications that
should be made to the condensed consolidated financial statements referred
to above for them to be in conformity with accounting principles generally
accepted in the United States of America.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Alico, Inc. and subsidiaries as
of August 31, 2000 and the related consolidated statements of operations,
stockholders' equity and cash flows for the year then ended (not presented
herein); and in our report dated October 12, 2000 we expressed an
unqualified opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed
consolidated balance sheet as of August 31, 2000, is fairly presented,
in all material respects, in relation to the consolidated balance sheet
from which it has been derived.
s/s KPMG LLP
Orlando, Florida
April 2, 2001
EXHIBIT B
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of February 28, 2001:
Number of shares outstanding at August 31, 2000 7,027,827
_________
_________
Number of shares outstanding at February 28, 2001 7,027,827
_________
_________
Weighted Average 9/1/00 - 02/28/01 7,027,827
_________
_________