UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K __X__ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended August 31, 1995. OR _____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from ________________ to_______________. Commission file number 0-261. ALICO, INC. ______________________________________________________ (Exact name of registrant as specified in its charter) Florida 59-0906081 _______________________________ ____________________ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P. O. Box 338, La Belle, Florida 33935 ________________________________________ __________ (Address of principal executive offices) (Zip Code) (941)675-2966 Registrant's telephone number, including area code______________ SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: Name of each exchange on Title of each class which registered ___________________ ________________________ None None SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: COMMON CAPITAL STOCK, $1.00 Par value, Non-cumulative _____________________________________________________ (Title of Class) Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. _________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that such registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes __X__ No_____ As of October 20, 1995 there were 7,027,827 shares of stock outstanding and the aggregate market value (based upon the average bid and asked price, as quoted on NASDAQ) of the common stock held by nonaffiliates was approximately $60,856,775. DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's Annual Report and Proxy Statement dated November 10, 1995 are incorporated by reference in Parts II and III, respectively. PART I ______ Item 1. Business. __________________________ Alico, Inc. (the "Company") is generally recognized as an agribusiness company operating in Central and Southwest Florida. The Company's primary asset is 164,581 acres of land located in Collier, Hendry, Lee and Polk Counties. (See table on Page 5 for location and acreage by current primary use.) The Company is involved in various operations and activities including citrus fruit production, cattle ranching, sugarcane and sod production, and forestry. The Company also leases land for farming, cattle grazing, recreation, and oil exploration. The Company's land is managed for multiple use wherever possible. Cattle ranching, forestry and land leased for farming, grazing, recreation and oil exploration, in some instances, utilize the same acreage. Agricultural operations have combined to produce from 73 to 93 percent of annual revenues during the past five years. Citrus groves generate the most gross revenue. Sugarcane ranks second in revenue production. While the cattle ranching operation utilizes the largest acreage, it ranks third in the production of revenue. Approximately 10,006 acres of the Company's property are classified as timberlands, however, the area in which these lands are located is not highly rated for timber production. These lands are also utilized as native range, in the ranching operation, and leased out for recreation and oil exploration. Diversification of the Company's agricultural base was initiated with the development of a Sugarcane Division at the end of the 1988 fiscal year. The 5,000 acres in production during the 1995 fiscal year consisted of 1,110 acres planted in the fall of 1989, 863 acres planted in 1990, 22 acres planted in 1991, 2,042 acres planted in 1992 and 1,003 acres planted in 1993. The Company continued to expand agriculture activities during the 1995 fiscal year, continuing development of a farm leasing project and additional citrus acreage. Leasing of lands for rock mining and oil and mineral exploration, rental of land for grazing, farming, recreation and other uses, while not classified as agricultural operations, are important components of the Company's land utilization and operation. Gross revenue from these activities during the past five years has ranged from 2 to 3 percent of total revenue. The Company is not in the land sales and development business, except through its wholly owned subsidiary, Saddlebag Lake Resorts, Inc.; however, it does from time to time sell properties which, in the judgment of management, are surplus to the Company's primary operations. Gross revenue from land sales during the past five years has ranged from 1 to 20 percent of total revenues. For further discussion of the relative importance of the various segments of the Company's operations, including financial information regarding revenues, operating profits (losses) and assets attributable to each major segment of the Company's business, see Note 11 of Notes to Consolidated Financial Statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated in this document. Subsidiary Operations _____________________ The Company's wholly owned subsidiary, Saddlebag Lake Resorts, Inc. (the "Subsidiary"), is only active in the subdividing, development and sale of real estate. The financial results of the operation of this subsidiary are consolidated with those of the Company. (See Note 1 of Notes to Financial Statements.) Contributions by the Subsidiary to the net income of the Company, during the past five years, have ranged from 0 to 1 percent. The Subsidiary has two subdivisions near Frostproof, Florida which have been developed and are on the market. Approximately 68% of the lots have been sold. Citrus ______ Approximately 7,694 acres of citrus were harvested during the 1995 season. Since 1983 the Company has maintained a marketing contract covering the majority of the Company's citrus crop with Ben Hill Griffin, Inc., a Florida corporation and major shareholder. The agreement provides for modifications to meet changing market conditions and provides that either party may terminate the contract by giving notice prior to August 1st, preceding the fruit season immediately following. Under the terms of the contract the Company's fruit is packed and/or processed and sold along with fruit from other growers, including Ben Hill Griffin, Inc. The proceeds are distributed on a pro rata basis as the finished product is sold. During the year ended August 31, 1995, approximately 88% of the Company's fruit crop was marketed under this agreement, the same percentage as in 1993/94. The Company expects that the majority of the 1995/96 crop will be marketed under the same terms. In addition, Ben Hill Griffin, Inc. provides harvesting services to the Company for citrus sold to unrelated processors. These sales accounted for the remaining 12% of total citrus revenue for the year. Ranch _____ The Company has a cattle operation located in Hendry and Collier Counties, Florida which is engaged primarily in the production of beef cattle and the raising of replacement heifers. The breeding herd consists of approximately 19,000 cows, bulls and replacement heifers. Approximately 31% of the herd are from one to five years old, while the remaining 69% are six and older. The Company primarily sells to contract cattle buyers. The Company also sells cattle through local livestock auction markets and to packing and processing plants located in the area. These buyers provide ready markets for the Company's cattle. The loss of any one or a few of these plants and/or buyers would not, in management's view, have a material adverse effect on the Company's cattle operation. Subject to prevailing market conditions, the Company may hedge up to 50% of its beef inventory by entering into cattle futures contracts to reduce exposure to changes in market prices. During 1993, the Company began a program of retaining ownership of calves shipped to Midwest feedlots. This program results in \ increased sales prices per head as weight is added in the feedlot. Sugarcane _________ The Company had 5,000 acres and 5,626 acres of sugarcane in production during the 1994/95 and 1993/94 fiscal year, respectively. The 1994/95 and 1994/93 crops yielded approximately 186,000 and 230,000 gross tons, respectively. Forest Products _______________ Approximately 6% of the Company's properties are classified as timberlands. The principal forest products sold by the Company, prior to the 1992/93 fiscal year, were pulpwood and sabal palms. These products were sold to a paper company and various landscaping companies, respectively. During the 1994/95 fiscal year, revenues consisted almost entirely of sabal palms sold to landscaping companies. The Company does not incur any of the harvesting expenses. Part of the lands, from which the timber was removed, is being converted to semi-improved pasture and other uses. Land Rental for Grazing, Agricultural and Other Uses ____________________________________________________ The Company rents lands to other for grazing, farming and recreational uses, on a tenant-at-will basis, for an annual fee. The income is not significant when compared to overall gross income, however, it does help to offset the expense of carrying these properties until they are put to a more profitable use. The Company has developed additional land to lease for farming. There were no significant changes in the method of rental for these purposes during the past fiscal year. Leases for Oil and Mineral Exploration ______________________________________ The Company has leased subsurface rights to a portion of it's properties for the purpose of oil and mineral exploration. Currently, there are no leases in effect. Twenty-three wells have been drilled during the years that the Company has been leasing subsurface rights to oil companies. The drilling has resulted in twenty-one dry holes, one marginal producer, which has been abandoned, and one average producer, still producing. Mining Operations: Rock and Sand _________________________________ The Company leases 7,927 acres in Lee County, Florida to Florida Rock Industries, Inc. of Jacksonville, Florida for mining and production of rock, aggregate, sand, baserock and other road building and construction materials. Royalties which the company receives for these products are based on a percentage of the f.o.b. plant sales price. Competition ___________ As indicated, the Company is primarily engaged in a limited number of agricultural activities, all of which are highly competitive. For instance, citrus is grown in several states, the most notable of which are: Florida, California, Arizona and Texas. In addition, citrus and sugarcane products are imported from some foreign countries. Beef cattle are produced throughout the United States and domestic beef sales must also compete with sales of imported beef. Additionally, forest and rock products are produced in most parts of the United States. Leasing of land for oil exploration is also widespread. The Company's share of the market for citrus, cattle and forest products in the United States is insignificant. Environmental Regulations _________________________ The Company's operation is subject to various federal, state and local laws regulating the discharge of materials into the environment. The Company is in substantial compliance with all such rules and such compliance has not had a material effect upon capital expenditures, earnings or the competitive position of the Company. While compliance with environmental regulations has not had a material economic effect on the Company's operations, executive officers are required to spend a considerable amount of time keeping current on these matters. In addition, there are ongoing costs incurred in complying with the permitting and reporting requirements. Employees _________ At the end of August 1995 the Company had a total of 138 full-time employees classified as follows: Citrus 60; Ranch 24; Sugarcane 10; Facilities Maintenance Support 29; General and Administrative 15. There are no employees engaged in the development of new products or research. Seasonal Nature of Business ___________________________ As with any agribusiness enterprise, the Company's business operations are predominantly seasonal in nature. The harvest and sale of citrus fruit generally occurs from October to June. Cattle sales usually occur in the first and fourth quarters of the fiscal year, with the majority occurring in the fourth quarter. Sugarcane is harvested during the first, second and third quarters. Other segments of the Company's business such as its timber, mining and leasing operations, tend to be more successive than seasonal in nature. Item 2. Properties. ____________________________ At August 31, 1995, the Company owned a total of 164,581 acres of land located in four counties in Florida. Acreage in each county and the primary classification with respect to present use of these properties is shown in the following table:
ACREAGE BY CURRENT PRIMARY USE ______________________________ Timber Native Improved Citrus Sugar- Agri- County Land Pasture Pasture Sod Land cane culture Other Total ___________________________________________________________________________ Polk 550 8,870 447 -- 3,148 -- -- 4 13,019 Lee 3,731 1,088 -- -- -- -- 1,460 3,646 9,925 Hendry 3,823 80,609 24,096 373 2,299 6,831 5,106 3,636 126,773 Collier 1,902 5,371 1,212 -- 4,041 -- -- 2,338 14,864 ______ _______ ______ ___ _____ _____ _____ _____ _______ Totals 10,006 95,938 25,755 373 9,488 6,831 6,566 9,624 164,581 ______ _______ ______ ___ _____ _____ _____ _____ _______ ______ _______ ______ ___ _____ _____ _____ _____ _______
Of the above lands, the Company utilizes 25,308 acres of improved pasture plus approximately 60,000 acres of native pasture for cattle production and 7,927 acres are leased for rock mining operations. Much of the land is also leased for multi-purpose use such as cattle grazing, oil exploration, agriculture and recreation. In addition to the land shown in the above table, the Company owns full subsurface rights to 1,173 acres and fractional subsurface rights to 18,882 acres. From the inception of the Company's initial development program in 1948, the goal has been to develop the lands for the most profitable use. Prior to implementation of the development program, detailed studies were made of the properties focusing on soil capabilities, topography, transportation, availability of markets and the climatic characteristics of each of the tracts. Based on these and later studies, the use of each tract was determined. It is the opinion of Management that the lands are suitable for agricultural, residential and commercial uses. However, since the Company is primarily engaged in agricultural activities, some of the lands are considered surplus to its needs for this purpose and, as indicated under Item 1 of this report, sales of real property are made from time to time. Management believes that each of the major programs is adequately supported by agricultural equipment, buildings, fences, irrigation systems and other amenities required for the operation of the projects. In October 1992 the Company entered into a contract, with the Board of Regents of the State of Florida, committing to a donation of 975 acres of land and other items, in connection with a new state university. In addition to the contribution of land, the following items and amounts were also committed: design and planning - $200,000; academic chairs - $1,200,000; road construction - $2,400,000. Governmental approvals have been obtained to develop approximately 2,500 acres surrounding the University site. However, the development schedule of the University is subject to the appropriation of funds by the legislature. Currently, construction is expected to begin in January 1996 with the opening to occur in the fall of 1997. Item 3. Legal Proceedings. ___________________________________ There are no pending legal proceedings involving the Company. Item 4. Submission of Matters to a Vote of Security Holders. _____________________________________________________________________ There were no matters submitted to a vote of security holders during the 1995 fiscal year. Executive Officers of the Company _________________________________ Pursuant to General Instruction G(3) of Form 10-K, the following list is included as an unnumbered Item in Part I of this report in lieu of being included in the Proxy Statement for the Annual Meeting of Stockholders to be held on December 7, 1995. Election of Executive Officer is held each year at the Annual Meeting of the Board of Directors following the Annual Meeting of the Stockholders. Name Title Age ____ _____ ___ Ben Hill Griffin, III Chairman of the Board (since March 1990), President and Chief Executive Office (since January 1988) and Director (since March 1973) 53 W. Bernard Lester Executive Vice President and Chief Operating Officer (since January 1988) and Director (since 1987), prior to July 1, 1986 was Executive Director of Florida Department of Citrus for over five years 56 L. Craig Simmons Vice President (effective February, 1995), Treasurer and Chief Financial Officer (effective September 1, 1992), prior thereto was Controller (from January 1 to August 31, 1992) and Assistant Comptroller (from January 1 to December 31, 1991), prior to September 1990 was Controller of Farm/Citrus Division, Collier Enterprises, Agribusiness Group 43 Based solely upon a review of Forms 3 and 4 and amendments thereto furnished to the Company pursuant to Rule 16a-3(e) during the 1991 fiscal year and Forms 5 and amendments thereto furnished to the Company during fiscal year 1992 and certain written representations, if any, made to the Company, no officer, director or beneficial owners of 10% or more of the Company's common stock has failed to file on a timely basis any reports required by Section 16(a) of the Exchange Act to be filed during fiscal 1992. PART II _______ Item 5. Market for the Registrant's Common Stock and Related _____________________________________________________________________ Stockholder Matters. ____________________ Common Stock Prices ___________________ The common stock of Alico, Inc. is traded over-the-counter on the NASDAQ National Market System under the symbol ALCO. The high and low sales prices, by fiscal quarter, during the years ended August 31, 1995 and 1994 are presented below:
1995 1994 Bid Price Bid Price _________ _________ High Low High Low First Quarter 18 1/4 16 1/2 19 3/4 17 1/4 Second Quarter 17 5/16 15 1/2 22 3/4 18 1/2 Third Quarter 17 1/2 15 21 1/4 17 Fourth Quarter 20 15 1/2 18 1/4 16
Approximate Number of Holders of Common Stock _____________________________________________ As of October 20, 1995 there were approximately 1,084 holders of record of Alico, Inc. Common Stock. Dividend Information ____________________ Only year-end dividends have been paid, and during the last three fiscal years were as follows: Amount Paid Record Date Payment Date Per Share ___________ ____________ ___________ October 23, 1992 November 12, 1992 $.15 October 22, 1993 November 12, 1993 $.15 October 21, 1994 November 10, 1994 $.25 Dividends are paid at the discretion of the Company's Board of Directors. The Company foresees no change in its ability to pay annual dividends in the immediate future; nevertheless, there is no assurance that dividends will be paid in the future since they are dependent upon earnings, the financial condition of the Company, and other factors. Item 6. Selected Financial Data. _________________________________________
Years Ended August 3l, DESCRIPTION 1995 1994 1993 1992 1991 ________ ________ ________ ________ ________ (In Thousands Except Per Share Amounts) Revenues $ 39,571 $ 38,502 $ 28,563 $ 32,284 $ 28,185 Costs and Expenses 25,105 26,799 24,103 24,930 19,688 Income Taxes 5,525 3,975 1,503 2,455 2,803 Cumulative Effect of Accounting Change - - 2,337 - - Net Income 8,941 7,728 5,294 4,899 5,694 Average Number of Share Outstanding 7,028 7,028 7,028 7,028 7,028 Net Income per Share 1.27 1.10 .75 .70 .81 Cash Dividend Paid per Share .25 .15 .15 .15 .15 Current Assets 31,736 28,341 23,597 22,572 21,912 Total Assets 109,007 102,185 90,516 85,632 80,367 Current Liabilities 5,656 5,660 2,936 4,748 3,358 Ratio-Current Assets to Current Liabilities 5.61:1 5.01:1 8.04:1 4.75:1 6.53:1 Working Capital 26,080 22,680 20,661 17,824 18,554 Long-Term Obligations 27,945 28,568 26,296 23,840 23,810 Total Liabilities 33,601 34,228 29,232 28,588 27,168 Stockholders' Equity 75,406 67,957 61,283 57,043 53,199
Item 7. Management's Discussion and Analysis of Financial __________________________________________________________________ Condition and Results of Operations. ____________________________________ Liquidity and Capital Resources _______________________________ The Company had cash and marketable securities of $10.6 million at August 31, 1995 compared with $9.7 million at August 31, 1994. Working capital also increased, from $22.7 million at August 31, 1994 to $26.1 million at August 31, 1995. Reinvestment of interest and dividends earned on cash and marketable securities increased the Company's position in these assets. In addition, the retained ownership of feeder cattle (as explained in the Ranching Operations section) has resulted in an increase in inventories at year end ($13.1 million vs $10.7 million at August 31, 1995 and 1994, respectively). During the fourth quarter of fiscal 1995, the Company sold 5,800 acres in Polk County, Florida to the State of Florida in a sale negotiated by The Nature Conservancy through the State's Conservation and Recreation Lands Program. Permits have been issued by the South Florida Water Management District and the U.S. Army Corps of Engineers to begin construction on the new university. The Company has provided a construction road as part of its road construction commitment. Actual construction on the university is anticipated to begin in the spring of 1996. Current plans are to have the core buildings completed for a projected opening in the fall of 1997. In connection with the examination by the Internal Revenue Service (see note 8) for the years ended August 31, 1992, 1991 and 1990, a partial settlement was made in April of 1995 relating to the year ended August 31, 1990. A payment of $385 thousand was made of which $260 thousand represented taxes and $125 thousand represented interest. The issues conceded related to the timing of items previously expensed. When the matter is completely resolved, any income taxes due will become currently payable. However, virtually all of the adjustments relate to differences of opinion regarding the timing of recognition of various deductions and, as a result, provision has been made through deferred income taxes and no further significant adjustment to earnings will be necessary. Management expects to resolve the remaining proposed adjustments during fiscal 1996. Cash outlay for land, equipment, buildings, and other improvements totaled $8.3 million, compared to $7.6 million during August 31, 1995 and 1994, respectively. Major expenditures included capitalized maintenance costs for young citrus groves and development of a new citrus grove. Land excavation for farm leasing also continued, as did expenditures for replacement equipment and sugarcane capital maintenance. Development is now complete on citrus groves. Capital projects are currently expected to decline during the next fiscal year. Management believes that the Company will be able to meet its working capital requirements with internally generated funds. In addition, the Company has an unused credit commitment which provides for revolving credit of up to $25 million of which $8.9 million was available for the Company's general use at August 31, 1995 (see note 6). Results of Operations _____________________ Summary of results (in thousands):
Years Ended August 31, 1995 1994 1993 _______ _______ _______ Operating revenue $30,547 $33,188 $27,149 Gross profit 7,059 7,607 4,163 Profit (loss) on sale of real estate 7,585 3,726 (121) Interest and investment income 998 1,045 926 Interest expense 1,176 675 508 Provision for income taxes 5,525 3,975 1,503 Effective income tax rate 38.2% 34.0% 33.7% Net income before cumulative effect of accounting change 8,941 7,728 2,957
Operating Revenue _________________ Fiscal 1995 operating revenues decreased by 8 percent from fiscal 1994. The decrease was primarily attributable to lower agricultural revenues. Fiscal 1994 operating revenues were up 22 percent over fiscal 1993. The increase primarily reflected improved earnings from agricultural activities. Gross Profit ____________ Gross profit during fiscal 1995 declined by 7 percent from fiscal 1994. The decrease was attributable to higher production costs for citrus, decreased sugarcane production, and lower market prices for beef, combined with decreased sales volume. Gross profit during fiscal 1994 was up 83 percent over fiscal 1993. The increase was attributable to higher market prices for citrus, increased sugarcane production and higher market prices for beef, combined with increased sales volume. Profit (Loss) on Sale of Real Estate ____________________________________ The Company recognized a $7.6 million profit from real estate sales during fiscal 1995, compared to a $3.7 million profit during fiscal 1994. The fiscal 1995 profit is attributable to the sale of 5,800 acres in Polk County, Florida to the State of Florida. The Company recognized a $3.7 million profit from the sale of real estate during fiscal 1994 compared to a $121 thousand loss during fiscal 1993. The fiscal 1994 profit was attributable to the sale of 40 acres in the proximity of the site of the new university in Lee County, Florida. Interest and Investment Income ______________________________ Interest and investment income is generated principally from investments in marketable equity securities, corporate and municipal bonds, mutual funds, U.S. Treasury securities and mortgages held on real estate sold on the installment basis. Investment earnings were reinvested throughout fiscal 1995 and 1994, increasing investment levels during each year. The decline in fiscal 1995 interest and investment income reflects an increase in equity securities. Interest and investment income was higher in 1994 than fiscal 1993 primarily because of higher investment levels. Interest Expense ________________ Interest expense rose 74 and 33 percent during fiscal 1995 and 1994, respectively. The rise in both years was due to interest rate increases during the year, combined with an increase in the level of borrowings during the year. However, proceeds from the Polk County real estate sale were subsequently used to reduce debt principal. Total interest cost, which includes capitalized interest and is discussed in Note 6, increased 69 percent during fiscal 1995 and 19 percent during fiscal 1994, compared to each respective prior fiscal year. Provision for Income Taxes __________________________ The effective tax rate was 38.2 percent during fiscal year 1995, compared to 34 percent during fiscal 1994 and 33.7 percent in fiscal 1993. The increase was due to deferred tax accruals to provide for the effects of the IRS audit (see note 8). Net Income Before Cumulative Effect of Accounting Change ________________________________________________________ As a result of the factors discussed above, fiscal 1995 earnings increased 16 percent compared to fiscal 1994, while fiscal 1994 earnings were up 261.3 percent compared to fiscal 1993 earnings before the cumulative effect of the accounting change. Individual Operating Divisions ______________________________ Gross profit for the individual operating divisions, for fiscal 1995, 1994 and 1993, is presented in the following schedule and is discussed in subsequent sections:
Years Ended August 31, (in thousands) 1995 1994 1993 _______ _______ _______ CITRUS Revenues: Sales $19,674 $18,796 $16,466 Less harvesting & marketing 6,569 6,226 5,876 _______ _______ _______ Net Sales 13,105 12,570 10,590 Cost and Expenses: Direct production** 5,488 4,926 5,467 Allocated cost* 2,205 2,220 2,005 _______ _______ _______ Total 7,693 7,146 7,472 _______ _______ _______ Gross profit, citrus 5,412 5,424 3,118 _______ _______ _______ SUGARCANE Revenues: Sales 6,026 6,839 5,010 Less harvesting & hauling 1,294 1,566 1,252 _______ _______ _______ Net Sales 4,732 5,273 3,758 Costs and expenses: Direct production 1,681 1,789 1,499 Allocated cost* 1,291 1,367 1,305 _______ _______ _______ Total 2,972 3,156 2,804 _______ _____ _______ Gross profit, sugarcane 1,760 2,117 954 _______ _______ _______ Individual Operating Divisions (Continued) Years Ended August 31, (in thousands) 1995 1994 1993 _______ _______ _______ RANCH Revenues: Sales 2,952 5,518 3,864 Costs and expenses: Direct production 1,438 2,241 1,809 Allocated cost* 1,008 1,608 1,147 _______ _______ _______ Total 2,446 3,849 2,956 _______ _______ _______ Gross profit, ranch 506 1,669 908 _______ _______ _______ Total gross profit, agriculture 7,678 9,210 4,980 _______ _______ _______ OTHER OPERATIONS Revenues: Rock products and sand 956 1,123 913 Oil leases and land rentals 678 708 474 Sabal palms 146 134 236 Other 116 71 185 _______ _______ _______ Total 1,896 2,036 1,808 Costs and expenses: Allocated Cost* 384 383 485 General and administrative, all operations 2,131 3,256 2,140 _______ _______ _______ Total 2,515 3,639 2,625 _______ _______ _______ Gross loss, other operations (619) (1,603) (817) _______ _______ _______ Total gross profit 7,059 7,607 4,163 _______ _______ _______ Years Ended August 31, (in thousands) 1995 1994 1993 _______ _______ _______ INTEREST & DIVIDENDS Revenue 998 1,045 926 Expense 1,176 675 508 _______ _______ _______ Interest & dividends, net (178) 370 418 _______ _______ _______ REAL ESTATE Revenue: Sale of real estate 8,026 4,268 488 Expenses: Cost of sales 111 192 146 Other Costs 330 350 463 _______ _______ _______ Total 441 542 609 _______ _______ _______ Gain (loss) on sale of real estate 7,585 3,726 (121) _______ _______ _______ Income before income taxes and cumulative effect $14,466 $11,703 $ 4,460 _______ _______ _______ _______ _______ _______
* Allocated expense includes ad valorem and payroll taxes, depreciation and insurance. ** Excludes capitalized maintenance cost of groves less than five years of age consisting of 1.4 million on 1,718 acres in 1995, 1.0 million on 2,212 acres in 1994 and $730 thousand on 1,435 acres in 1993. Citrus ______ Gross profit was $5.4 million for fiscal 1995 and 1994, and $3.1 million for fiscal 1993. Citrus revenue for fiscal 1995 rose 5 percent over fiscal 1994 ($19.7 million during fiscal 1995 vs. $18.8 million during fiscal 1994), the result of a 7 percent production increase for the year, as 3.4 million boxes were harvested during fiscal 1995, compared to 3.2 million boxes during fiscal 1994. Direct production costs increased 11 percent over fiscal 1994 ($5.5 million during fiscal 1995 vs $4.9 million during fiscal 1994), while allocated costs remained constant for fiscal 1995 and 1994 at $2.2 million each year. The rise in citrus revenue was largely attributable to the increase in production discussed above. The average market price, however, declined 2 percent ($5.80 per box in fiscal 1995 vs. $5.94 per box in fiscal 1994). The increase in direct production was due, in part, to the addition of the last phase of the Corkscrew West Grove. Additionally, cultivation costs increased. These expenses are typically impacted by various circumstances, such as, the weather, insect and other parasite pressure, combined with various disease prevention and treatment programs. The Company practices cultivation techniques that are designed to maintain yield per acre and maximize the related cost to benefit ratio. Citrus revenue during fiscal 1994 rose 14 percent over fiscal 1993 ($18.8 million during fiscal 1994 vs. $16.5 million during fiscal 1993). Production increased by 2 percent over the fiscal 1993 level of 3.1 million boxes to 3.2 million boxes during fiscal 1994. Direct production and allocated costs during fiscal 1994 decreased 4 percent compared to fiscal 1993 ($7.1 million vs. $7.5 million, respectively). The rise in citrus revenue during fiscal 1994 as compared to fiscal 1993 was attributable to increased market prices for citrus products. Market prices increased 12 percent, averaging $5.94 per box and $5.31 per box during fiscal 1994 and 1993, respectively. The final returns from citrus pools are not precisely determinable at year end. Returns are estimated each year based on the most current information available conservatively applied. Differences between the estimates and the final realization of revenues can be significant. Revenue collected in excess of prior year and year end estimates was $1.8 million, $1.7 million and $1.4 million during fiscal 1995, 1994 and 1993, respectively.
ACREAGE BY VARIETY AND AGE VARIETY 0-1 1-2 3-4 5-6 7-8 9-10 11-12 13-14 15-16 20+ Acres ___ ___ ___ ___ ___ ____ _____ _____ _____ ___ _____ Early: Parson Brown Oranges - - 117 30 - - - - - - 147 Hamlin Oranges 386 170 32 30 714 - 110 239 - 1,335 3,016 Red Grapefruit - - 54 - - - 48 158 99 70 429 White Grapefruit- - - 318 - - - - - 21 339 Tangelos - - - - - - - - - 135 135 Navel Oranges - - 15 - - - 54 84 - - 153 Mid Season: Pineapple Oranges - 103 - - - - 18 - - 467 588 Queen Oranges - - - - - - - - 11 40 51 Honey Tangerines 80 - - 45 - - - 94 - - 219 Midsweet Oranges 54 110 - - - - - - - - 164 Late: Valencia Oranges 826 308 654 305 729 - 35 165 - 1,225 4,247 _____ ___ ___ ___ _____ ___ ___ ___ ___ _____ _____ Totals: 1,346 691 872 728 1,443 0 265 740 110 3,293 9,488
Sugarcane _________ Gross profit for fiscal 1995 was $1.8 million compared to $2.1 million for fiscal 1994 and $954 thousand for fiscal 1993. Sugarcane revenue decreased 12 percent during fiscal 1995 compared to fiscal 1994 ($6.0 million vs. $6.8 million, respectively). Direct production and allocated costs decreased 6 percent during the year ($3.0 million vs. $3.2 million during fiscal 1995 and 1994, respectively). The sugarcane revenue and cost decreases were the result of an 11 percent decrease in the number of acres harvested during the year (5,000 acres in fiscal 1995 vs. 5,626 acres in fiscal 1994). Sugarcane earnings in fiscal 1994 were 22 percent higher than in fiscal 1993 ($2.1 vs. $954 thousand in fiscal 1994 and 1993, respectively). The earnings increase was largely attributable to a 39 percent rise in crop yield during fiscal 1994, compared to fiscal 1993. The yield increase was mostly due to an increase in acres harvested during the year (5,626 acres harvested in fiscal 1994 vs. 4,625 in fiscal 1993). Ranching ________ Gross profit from ranch operations for fiscal 1995, 1994 and 1993 was $506 thousand, $1.7 million, $908 thousand, respectively. Ranch revenue declined 47 percent during fiscal 1995, compared to fiscal 1994 ($3.0 million in fiscal 1995 vs. $5.5 million in fiscal 1994). Direct production and allocated costs decreased 36 percent during the same period ($2.4 million in fiscal 1995 vs. $3.8 million in fiscal 1994). Due to current market conditions, the Company has retained ownership in calves which would have been sold in prior years, in an attempt to improve gross profit per head. This has resulted in a large increase in the inventory of animals available for sale, compared to the prior year ($4.4 million vs. $2.2 million in fiscal 1995 and 1994, respectively). Additionally, the Company has purchased futures contracts (see note 4) to hedge against future price declines. As a result of the factors referred to above, 44 percent fewer animals were sold in fiscal 1995 than in fiscal 1994 (6,482 sold in fiscal 1995 vs. 11,525 in fiscal 1994). The decrease in direct production and allocated costs was also caused by the decrease in the number of animals sold. Ranch revenues increased 43 percent during fiscal 1994, compared to fiscal 1993 ($5.5 million in fiscal 1994 vs. $3.9 million during fiscal 1993) due to more units sold during 1994 (11,525 units sold in fiscal 1994 as compared to 8,565 in fiscal 1993) and increased sales weights. Total direct production and allocated costs increased 30 percent during the same period ($3.8 million vs. $3.0 million during fiscal 1994 and 1993, respectively) also due to the increased sales volume. This increase was offset somewhat by a 3 percent decrease in the average cost per head sold. Other Operations ________________ Revenues from oil royalties and land rentals were $678 thousand for fiscal 1995 compared to $708 thousand and $474 thousand for fiscal 1994 and 1993, respectively. The decline during fiscal 1995 from fiscal 1994 was due to a decline in grazing and recreational leases due to land sales and development around the university site. Returns from rock products and sand were $955 thousand for fiscal 1995 compared to $1.1 million and $913 thousand for fiscal 1994 and 1993, respectively. The variations between each of the years is due to the overall economic situation in the construction and road building industries. Rock and sand supplies are sufficient, and no major price changes have occurred over the past 3 years. Profits from the sale of sabal palms, for landscaping purposes, during fiscal 1995 were $146 thousand compared to $134 thousand and $236 thousand for fiscal years 1994 and 1993, respectively. Direct and allocated expenses charged to the "Other" operations category included general and administrative and other costs not charged directly to citrus, ranching, sugarcane or forestry. These expenses totaled $2.5 million during fiscal 1995 compared to $3.6 million during fiscal 1994 and $2.6 million during fiscal 1993. The decrease of fiscal 1995 from fiscal 1994, was largely due to the donation of land for the new university included in the 1994 expenses totaling $880 thousand. This is also the cause of the fiscal 1994 increase, compared to fiscal 1993. Item 8. Financial Statements and Supplementary Data. _____________________________________________________________ Independent Auditors' Report ____________________________ The Stockholders and Board of Directors Alico, Inc.: We have audited the consolidated balance sheets of Alico, Inc. and subsidiary as of August 31, 1995 and 1994 and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the years in the three-year period ended August 31, 1995. In connection with our audits of the consolidated financial statements, we also have audited the related consolidated financial statement schedules as listed in Item 14(a)(2) herein. These consolidated financial statements and financial statement schedules are the responsibility of the Company's management. Our responsi- bility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Alico, Inc. and subsidiary at August 31, 1995 and 1994, and the results of their operations and their cash flows for each of the years in the three-year period ended August 31, 1995, in conformity with generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the consolidated financial statement taken as a whole, present fairly, in all material respects, the information set forth therein. KPMG PEAT MARWICK LLP (Signature) October 6, 1995 Orlando, Florida
CONSOLIDATED BALANCE SHEETS August 31, 1995 1994 _____________ ____________ ASSETS Current assets: Cash, including time deposits and other cash investments of $1,116,194 in 1995 and $682,278 in 1994 $ 1,148,733 $ 967,196 Marketable equity securities available for sale, at market in 1995 and in 1994 (note 2) 4,204,731 4,016,537 Other marketable securities available for sale, at market in 1995, at cost in 1994 (note 2) 5,206,205 4,677,328 Accounts receivable ($5,272,823 in 1995 and $5,233,312 in 1994 due from affiliate) (note 9) 6,989,369 6,936,364 Mortgages and notes receivable, current portion (note 3) 864,885 682,579 Accrued interest receivable 163,342 190,543 Inventories (note 4) 13,057,136 10,681,350 Prepaid expenses 101,461 189,120 ____________ ____________ Total current assets 31,735,862 28,341,017 ____________ ____________ Other assets: Land inventories 7,322,740 6,757,549 Mortgages and notes receivable, net of current portion (note 3) 2,229,528 3,131,465 Investments 925,785 810,677 Other 42,983 40,470 ____________ ____________ Total other assets 10,521,036 10,740,161 ____________ ____________ Property, buildings and equipment (note 5) 91,703,367 85,507,357 Less accumulated depreciation (24,953,086) (22,403,837) ____________ ____________ Net property, buildings and equipment 66,750,281 63,103,520 ____________ ____________ Total assets $109,007,179 $102,184,698 ____________ ____________ ____________ ____________ August 31, 1995 1994 ____________ ____________ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 949,397 $ 1,386,912 Due to profit sharing plan (note 7) 217,968 248,594 Accrued ad valorem taxes 1,076,241 1,143,204 Accrued donation (note 10) 1,638,038 2,103,051 Accrued expenses 136,597 154,658 Income taxes payable 254,393 56,303 Deferred income taxes (note 8) 1,383,820 567,426 ____________ ____________ Total current liabilities 5,656,454 5,660,148 Note payable to a bank (note 6) 16,055,000 18,713,998 Deferred income taxes (note 8) 11,674,524 9,424,707 Deferred retirement benefits (note 7) 214,945 428,741 ____________ ____________ Total liabilities 33,600,923 34,227,594 Stockholders' equity: Preferred stock, no par value. Authorized 1,000,000 shares; issued, none - - Common stock, $1 par value. Authorized 15,000,000 shares; issued and outstanding 7,027,827 in 1995 and 1994 7,027,827 7,027,827 Unrealized gains on marketable securities (note 2) 264,739 - Retained earnings 68,113,690 60,929,277 ____________ ____________ Total stockholders' equity 75,406,256 67,957,104 ____________ ____________ Total liabilities and stockholders' equity $109,007,179 $102,184,698 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended August 31, 1995 1994 1993 ___________ ___________ ___________ Revenue: Citrus (note 9) $19,673,501 $18,796,161 $16,465,658 Sugarcane 6,025,745 6,838,759 5,010,672 Ranch 2,952,214 5,517,537 3,864,195 Forest products 146,196 134,036 236,980 Rock products and sand 955,461 1,122,893 912,863 Oil lease and land rentals 677,712 707,616 473,724 Profit on sales of real estate 8,026,209 4,267,504 487,601 Interest and investment income 998,185 1,046,198 926,008 Other income 115,760 71,449 185,089 ___________ ___________ ___________ Total revenue 39,570,983 38,502,153 28,562,790 ___________ ___________ ___________ Costs and expenses (including charges from affiliate (note 9): Citrus production, harvesting and marketing 14,261,502 13,371,456 13,348,280 Sugarcane production, harvesting and hauling 4,265,976 4,721,731 4,055,440 Ranch 2,446,117 3,848,877 2,956,114 Real estate 441,535 542,188 609,070 Interest (note 6) 1,175,599 674,803 508,125 Other, general and administrative expenses 2,514,573 3,639,768 2,626,175 ___________ ___________ ___________ Total costs and expenses 25,105,302 26,798,823 24,103,204 ___________ ___________ ___________ Income before income taxes and cumulative effect of accounting change 14,465,681 11,703,330 4,459,586 Provision for income taxes (note 8) 5,524,311 3,975,486 1,502,182 ___________ ___________ ___________ Net Income before cumulative effect of accounting change 8,941,370 7,727,844 2,957,404 Cumulative effect on prior years of changing the accounting method for income taxes (note 8) - - 2,337,000 ___________ ___________ ___________ Net Income $ 8,941,370 $ 7,727,844 $ 5,294,404 ___________ ___________ ___________ ___________ ___________ ___________ Weighted average number of shares outstanding 7,027,827 7,027,827 7,027,827 ___________ ___________ ___________ ___________ ___________ ___________ Per share amounts: Net income before cumulative effect of accounting change $1.27 $1.10 $ .42 Cumulative effect of accounting change $ - $ - $ .33 Net income $1.27 $1.10 $ .75 Dividends $ .25 $ .15 $ .15 Pro forma amounts, assuming the new method of accounting for income taxes is applied retroactively: Net Income $ 8,941,370 $ 7,727,844 $ 2,957,404 ___________ ___________ ___________ ___________ ___________ ___________ Earnings per share $1.27 $1.10 $ .42 See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Unrealized Common Stock Gains On Preferred Shares Retained Treasury Stock Securi- Stock Issued Amount Earnings Shares Amount ities _____ _________ __________ ___________ _______ _________ ________ Balance, August 31, 1992 $ - 7,165,504 $7,165,504 $53,919,052 137,677 $4,041,352 $ - ________________________ Net income for the year ended August 31, 1993 - - - 5,294,404 - - - Treasury stock cancelled - (137,677) (137,677) (3,903,675) (137,677) (4,041,352) - Dividends paid - - - (1,054,174) - - - _____ _________ __________ ___________ ________ __________ ________ Balance, August 31, 1993 - 7,027,827 7,027,827 54,255,607 - - - ________________________ Net income for the year ended August 31, 1994 - - - 7,727,844 - - - Dividends paid - - - (1,054,174) - - - _____ _________ __________ ___________ ________ __________ ________ Balance, August 31, 1994 - 7,027,827 7,027,827 60,929,277 - - - ________________________ Net income for the year ended August 31, 1995 - - - 8,941,370 - - - Unrealized gains on securities - - - - - - 264,739 Dividends paid - - - (1,756,957) - - - ______ _________ __________ ___________ ________ __________ ________ Balance, August 31, 1995 $ - 7,027,827 $7,027,827 $68,113,690 - $ - $264,739 ________________________ ______ _________ __________ ___________ ________ __________ ________ ______ _________ __________ ___________ ________ __________ ________ See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended August 31, 1995 1994 1993 ___________ ___________ ___________ Increase (Decrease) in Cash and Cash Investments: Cash flows from operating activities: Net Income $ 8,941,370 $ 7,727,844 $ 5,294,404 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 4,177,199 3,883,351 3,780,646 Loss on breeding herd sales and deaths (185,422) (181,232) (100,031) Deferred income tax expense (including cumulative effect) 2,906,324 1,474,842 (1,687,709) Deferred retirement benefits (213,796) 35,898 64,129 Net (gain) loss on sale of marketable securities (14,511) 84,311 (157,732) Donations (465,013) 879,540 (1,400,000) (Gain) loss on sale of property and equipment 157,334 (3,697) (46,187) (Gain) loss on real estate sales (8,011,703) (4,075,316) 121,014 Increase in land inventories (565,191) (987,591) (483,791) Other (70,388) (72,065) 14,614 Cash provided by (used for) changes in: Accounts receivable (53,005) (1,450,066) (1,358,564) Inventories (2,375,786) (1,021,537) 246,162 Prepaid expenses 87,659 19,053 (96,781) Other assets (2,513) - (4,827) Accounts payable and accrued expenses (455,575) 668,127 (422,722) Income taxes payable 198,090 (329,921) 93,917 ___________ ___________ ___________ Net cash provided by operating activities 4,055,073 6,651,541 3,856,542 ___________ ___________ ___________ Years Ended August 31, 1995 1994 1993 ____________ ____________ ___________ Cash flows from investing activities: Purchases of property and equipment (8,340,284) (7,624,472) (7,625,809) Proceeds from disposals of property and equipment 233,813 430,075 225,476 Proceeds from sale of real estate 8,322,300 1,417,847 203,392 Purchases of other assets (115,108) - (38,242) Sale of other assets - - 31,228 Purchases of marketable securities (1,900,519) (2,098,657) (2,904,138) Proceeds from sales of marketable securities 1,622,586 1,579,321 2,544,665 Collection of mortgages and notes receivable 719,631 149,380 385,012 ___________ __________ __________ Net cash provided by (used for) investing activities 542,419 (6,146,506) (7,178,416) ___________ __________ __________ Cash flows from financing activities: Proceeds of bank loans 17,666,002 12,184,574 11,451,449 Repayment of loans (20,325,000) (11,190,025) (7,455,000) Dividends paid (1,756,957) (1,054,174) (1,054,174) ___________ ___________ __________ Net cash provided by (used for) financing activities (4,415,955) (59,625) 2,942,275 ___________ ___________ __________ Net increase (decrease) in cash and cash investments 181,537 445,410 (379,599) Cash and Cash investments: At beginning of year 967,196 521,786 901,385 ___________ ___________ ___________ At end of year $ 1,148,733 $ 967,196 $ 521,786 ___________ ___________ ___________ ___________ ___________ ___________ Supplemental disclosures of cash flow information: Cash paid for interest, net of amount capitalized $ 1,079,939 $ 582,245 $ 458,336 ___________ ___________ ___________ ___________ ___________ ___________ Cash paid for income taxes $ 2,419,600 $ 2,830,861 $ 759,356 ___________ ___________ ___________ ___________ ___________ ___________ See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended August 31, 1995, 1994 and 1993 (1) Summary of Significant Accounting Policies __________________________________________ (a) Basis of Financial Statement Presentation _________________________________________ The accompanying financial statements include the accounts of Alico, Inc. (the Company) and its wholly owned subsidiary, Saddlebag Lake Resorts, Inc. (Saddlebag), after elimination of all significant intercompany balances and transactions. (b) Revenue Recognition ___________________ Income from sales of citrus under marketing pool agreements is recognized at the time the crop is harvested. The revenue is based on the Company's estimates of the amounts to be received as the sales of pooled products are completed. Fluxuation in the market prices for citrus fruit has caused the Company to recognize additional revenue from the prior years' crop totaling $1,770,146, $1,697,547, and $1,352,454 during fiscal years 1995, 1994 and 1993, respectively. (c) Real Estate ___________ Real estate sales are recorded under the accrual method of accounting. Retail land sales are not recognized until payments received, including interest, aggregate 10 percent of the contract sales price for residential real estate or 20 percent for commercial real estate. Sales are discounted to yield the market rate of interest where the stated rate is less than the market rate. The recorded valuation discounts are realized as the balances due are collected. In the event of early liquidation, interest is recognized on the simple interest method. Tangible assets that are purchased during the period to aid in the sale of the project as well as costs for services performed to obtain regulatory approval of the sales are capitalized as land and land improvements to the extent they are estimated to be recoverable from the sale of the property. Land and land improvement costs are allocated to individual parcels on a per lot basis which approximates the relative sales value method. (1), Continued The Company has entered into an agreement with a real estate consultant to assist in obtaining the necessary regulatory approvals for the development and marketing of a tract of raw land. The marketing costs under this agreement are being expensed as incurred. The costs incurred to obtain the necessary regulatory approvals are capitalized into land costs when paid. These costs will be expensed as cost of sales when the underlying real estate is sold. (d) Marketable Securities Available for Sale ________________________________________ For the year ending August 31, 1995, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 115 "Accounting for Certain Investments in Debt and Equity Securities". Prior years' consolidated financial statements have not been restated to retroactively apply the provisions of this statement. At August 31, 1995, marketable securities available for sale are carried at the aggregate market value of the portfolio. Aggregate net unrealized investment gains or losses are recorded net of related deferred taxes in a separate component of equity until realized. At August 31, 1994, marketable securities available for sale are carried at the lower of the aggregate cost or market value of the portfolio. Aggregate net unrealized investment losses are included in the results of operations. The cost of all marketable securities available for sale are determined on the specific identification method. (e) Inventories ___________ Beef cattle inventories are stated at the lower of cost or market. The cost of the beef cattle inventory is based on the accumulated cost of developing such animals for sale. Unharvested crops are stated at the lower of cost or market. The cost for unharvested crops is based on accumulated production costs incurred during the eight month period from January 1 through August 31. (f) Property, Buildings and Equipment _________________________________ Property, buildings and equipment are stated at cost. Properties acquired from the Company's predecessor corporation in exchange for common stock issued in 1960, at the inception of the Company, are stated on the basis of cost to the predecessor corporation. Property acquired as part of a land exchange trust is valued at the carrying value of the property transferred to the trust. The breeding herd consists of purchased animals and animals raised on the Ranch. Purchased animals are stated at cost. The cost of animals raised on the ranch is based on the accumulated cost of developing such animals for productive use. Depreciation for financial reporting purposes is computed on straight-line and accelerated methods over the estimated useful lives of the various classes of depreciable assets. (g) Income Taxes ____________ In February 1992, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 109, ACCOUNTING FOR INCOME TAXES. Statement 109 requires a change from the deferred method of accounting for income taxes of APB Opinion 11 to the asset and liability method of accounting for income taxes. Under the asset and liability method of Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Effective September 1, 1992, the Company adopted Statement 109 and has reported the cumulative effect of that change in the method of accounting for income taxes in the fiscal 1993 consolidated statement of operations. (h) Earnings Per Share __________________ Earnings per share has been computed by dividing net income by the weighted average number of common shares outstanding during the year. (i) Cash Flows __________ For purposes of the cash flows, cash and cash investments include cash on hand and amounts due from banks with an original maturity of less than three months. (j) Reclassifications _________________ Certain amounts from 1994 and 1993 have been reclassified to conform to the 1995 presentation. (2) Marketable Securities Available for Sale ________________________________________ The Company implemented Statement of Financial Auditing Standards (SFAS) No. 115 "Accounting for Certain Investments in Debt and Equity Securities" as of September 1, 1994. Prior years' consolidated financial statements have not been restated to retroactively apply the provisions of this statement. SFAS 115 changes the way the Company determines the carrying value of certain debt and equity investments. Under prior guidelines, investments were carried at the lower of cost or fair market value. Gains or losses on the individual securities were recognized in earnings when the investments were sold. At August 31, 1994, the marketable equity securities, which had a cost basis of $4,038,704, were carried at market. The unrealized loss, totaling $22,167, was included in the results of operations for the year then ended. Under SFAS 115, the Company has classified 100% of its investments in marketable securities as available-for-sale and, as such, the seccurities are carried at fair market value. Any unrealized gains and losses, net of related deferred taxes, are recorded as a net amount in a separate component of equity until realized. The amortized cost and estimated market values of marketable securities at August 31, 1995 and 1994 (in thousands) were as follows:
1995 1994 __________________________________________ __________________________________________ Gross Estimated Gross Estimated Amortized Unrealized Market Amortized Unrealized Market Cost Gains Losses Value Cost Gains Losses Value __________ ________ ________ __________ __________ ________ ________ __________ Equity securities $3,917 $352 $ 64 $4,205 $4,039 $ 92 $114 $4,017 Debt securities 5,069 208 71 5,206 4,677 238 66 4,849 ______ ____ ____ ______ ______ ____ ____ ______ Marketable securities available for sale $8,986 $560 $135 $9,411 $8,716 $330 $180 $8,866 ______ ____ ____ ______ ______ ____ ____ ______ ______ ____ ____ ______ ______ ____ ____ ______ At August 31, 1995, debt instruments are collectible as follows: $50,000 within one year, $551,012 between one and five years, $525,250 between five and ten years, and $2,693,431 thereafter.
(3) Notes Receivable ________________ Notes receivable include mortgage and other notes receivable. Mortgage notes receivable arose principally from real estate sales. The balances (in thousands) at August 31, 1995 and 1994 are as follows:
1995 1994 ______ ______ Mortgage notes receivable on retail land sales $ 706 $ 840 Less: Unearned discount 186 233 Contract valuation discount 26 34 Allowance for uncollectible accounts 24 34 ______ ______ Mortgage notes receivable on retail land sales, net 470 539 Mortgage notes receivable on bulk land sales 2,453 3,104 Other notes receivable 171 171 ______ ______ Total mortgage notes receivable 3,094 3,814 Less current portion 865 683 ______ ______ Non-current portion $2,229 $3,131 ______ ______ ______ ______
At August 31, 1995, substantially all contracts and mortgages on retail land sales were collectible over periods ranging from 1 to 10 years with expected maturities as follows: $54 thousand in 1996, $74 thousand in 1997, $73 thousand in 1998, $69 thousand in 1999, $53 thousand in 2000, and $147 thousand thereafter. At August 31, 1995, notes receivable, other than those from retail land sales, were collectible over periods ranging from 1 to 5 years with expected maturities as follows: $811 thousand in 1996, $953 thousand in 1997, $853 thousand in 1998, $4 thousand in 1999, and $3 thousand in 2000. (4) Inventories ___________ A summary of the Company's inventories (in thousands) at August 31, 1995 and 1994 is shown below:
1995 1994 _______ _______ Unharvested fruit crop on trees $ 6,027 $ 5,937 Unharvested sugarcane 2,138 2,160 Beef cattle 4,429 2,227 Sod 463 357 _______ _______ Total inventories $13,057 $10,681 _______ _______ _______ _______
Subject to prevailing market conditions, the Company may hedge up to 50% of its beef inventory by entering into cattle futures contracts to reduce exposure to changes in market prices. The Company has designated these agreements as a hedge and, therefore, any gains or losses anticipated under these agreements will be deferred, with the cost of the related cattle being adjusted when the contracts are settled. (5) Property, Buildings and Equipment _________________________________ A summary of the Company's property, buildings and equipment (in thousands) at August 31, 1995 and 1994 is shown below:
Estimated Use- 1995 1994 ful Lives _______ _______ ___________ Breeding herd $12,094 $10,980 5-7 years Buildings 3,035 2,907 5-40 years Citrus trees 17,846 15,581 22-40 years Sugarcane 2,142 2,034 4-15 years Equipment and other facilities 24,256 22,407 3-40 years _______ _______ Total depreciable properties 59,373 53,909 Less accumulated depreciation 24,953 22,404 _______ _______ Net depreciable properties 34,420 31,505 Land and land improvements 32,330 31,599 _______ _______ Net property, buildings and equipment $66,750 $63,104 _______ _______ _______ _______
Except for special situations, the Company's citrus trees, fruit crop, unharvested sugarcane and cattle are uninsured. (6) Indebtedness ____________ The Company has an unsecured financing agreement with a commercial bank that permits the Company to borrow up to $3,000,000 which is due on demand and up to $22,000,000 which is due in January 1997. Under this agreement, there was no current debt as of August 31, 1995 and 1994. The total amount of long-term debt under this agreement at August 31, 1995 and 1994 was $16,055,000 and $18,713,998, respectively. Interest cost expensed and capitalized (in thousands) during the three years ended August 31, 1995, 1994 and 1993 was as follows:
1995 1994 1993 ______ ______ ______ Interest expense $1,176 $ 675 $ 508 Interest capitalized 576 359 362 ______ ______ ______ Total interest cost $1,752 $1,034 $ 870 ______ ______ ______ ______ ______ ______
(7) Employee Benefit Plans ______________________ The Company has a profit sharing plan covering substantially all employees. The plan was established under Internal Revenue Code Section 401(k). Contributions made to the profit sharing plan were $217,968, $248,594 and $161,644 for the years ended August 31, 1995, 1994 and 1993, respectively. Certain officers and employees also have employment contracts for additional retirement benefits, the cost of which is accruable on a present value basis over the remaining term of the employment agreements. The lives of such officers and employees have been insured as a means of funding such additional benefits. The accrued pension liability for these additional retirement benefits at August 31, 1995 and 1994 was $109,973 and $269,811, respectively. Additionally, the Company implemented a nonqualified defined benefit retirement plan covering the officers and other key management personnel of the Company. The plan is being funded by the purchase of insurance contracts. The accrued pension liability for the nonqualified defined benefit retirement plan at August 31, 1995 and 1994 was $108,862 and $115,198, respectively. Pension expenses for the additional retirement benefits were approximately $167,000, $196,000 and $315,000 for the years ended August 31, 1995, 1994 and 1993, respectively. (8) Income Taxes ____________ The provision for income taxes (in thousands) for the years ended August 31, 1995, 1994 and 1993 is summarized as follows:
1995 1994 1993 ______ ______ ______ Current: Federal income tax $1,980 $2,172 $ 916 State income tax 322 327 170 ______ ______ ______ 2,302 2,499 1,086 ______ ______ ______ Deferred: Federal income tax 2,911 1,234 351 State income tax 311 242 65 ______ ______ ______ 3,222 1,476 416 ______ ______ ______ Total provision for income taxes $5,524 $3,975 $1,502 ______ ______ ______ ______ ______ ______
Following is a reconciliation of the expected income tax expense computed at the U.S. Federal statutory rate of 34 percent and the actual income tax provision (in thousands) for the years ended August 31, 1995, 1994 and 1993:
1995 1994 1993 ______ ______ ______ Expected income tax $4,918 $3,979 $1,516 Increase (decrease) resulting from: State income taxes, net of federal benefit 525 375 155 Nontaxable interest and dividends (180) (181) (192) Other reconciling items, net 261 (198) 23 ______ ______ ______ Total provision for income taxes $5,524 $3,975 $1,502 ______ ______ ______ ______ ______ ______
(8), Continued The Company implemented Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes", during the year ended August 31, 1993. The cumulative effect of this change was a one-time increase to earnings of $2,337,000 or $.33 per share. Some items of revenue and expense included in the statement of operations may not be currently taxable or deductible on the income tax returns. Therefore, income tax assets and liabilities are divided into a current portion, which is the amount attributable to the current year's tax return, and a deferred portion, which is the amount attributable to another year's tax return. The revenue and expense items not currently taxable or deductible are called temporary differences. At August 31, 1995 the Company had an unused charitable contribution carryover totaling $10,845,000. Management estimates that $2,100,000 will be used to reduce taxable income over the next five years. As a result, the estimated unusable portion of the carryover has been set up as the valuation amount in the deferred tax asset schedule below. The contribution carryover expires in 1999. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):
1995 1994 1993 _______ _______ _______ Deferred Tax Assets: Contribution carryover $(4,081) $(7,300) $ (274) Less valuation allowance 3,291 6,510 - _______ _______ _______ Net contribution carryover (790) (790) (274) Beef cattle inventory - (386) (260) Pension (163) (161) (163) Other (31) (25) - _______ _______ _______ Total gross deferred tax assets (984) (1,362) (697) _______ _______ _______ (8), Continued 1995 1994 1993 _______ _______ _______ Deferred Tax Liabilities: Long-term investments - - 179 Revenue recognized from citrus and sugarcane 546 860 326 Unharvested crop inventories 362 344 307 Deferred revenues 3,194 - - Property and equipment (principally due to depreciation and soil and water deductions) 8,302 8,389 8,081 Mortgage notes receivable 910 1,262 93 Other 728 500 228 _______ _______ _______ Total gross deferred tax liabilities 14,042 11,355 9,214 _______ _______ _______ Net deferred income tax liabilities $13,058 $ 9,993 $ 8,517 _______ _______ _______ _______ _______ _______
The Company is currently under examination by the Internal Revenue Service for the years ended August 31, 1992, 1991 and 1990. The adjustments proposed to date by the Internal Revenue Service would potentially result in approximately $6.9 million in additional income taxes. When the matter is resolved, any income taxes due will become currently payable. However, the majority of the proposed adjustments relate to the timing of recognition of certain income and expense items already provided for in the Company's deferred tax liability accounts. A partial settlement was reached with the Internal Revenue Service during April of 1995. A payment of $385,043 was made consisting of $260,259 income taxes and $124,784 interest. The items conceded related to the timing of recognition of certain items previously expensed. The effect of this payment was to increase interest expense by $124,784 and reduce the current deferred tax liability by $260,259. Management is of the opinion that the ultimate resolution of the remaining proposed adjustments will not have a significant adverse effect on the financial position or operations of the Company. (9) Related Party Transactions __________________________ Citrus ______ Citrus revenues of $17,398,420, $16,555,206 and $15,074,979 were recognized for a portion of citrus crops sold under a marketing agreement with Ben Hill Griffin, Inc. (Griffin) for the years ended August 31, 1995, 1994 and 1993, respectively. Griffin is the owner of 49.71 percent of the Company's common stock. Accounts receivable from citrus sales, included in the accompanying balance sheets, include amounts due from Griffin totaling $5,272,823 and $5,233,312 at August 31, 1995 and 1994, respectively. These amounts represent estimated revenues to be received periodically under pooling agreements as the sale of pooled products is completed. Harvesting, marketing, and processing costs, related to the citrus sales noted above, totaled $5,732,506, $5,437,019, and $5,371,996 for the years ended August 31, 1995, 1994 and 1993, respectively. In addition, Griffin provided the harvesting services for citrus sold to an unrelated processor. The aggregate cost of these services was $764,082, $738,737 and $445,616 for the years ended August 31, 1995, 1994 and 1993, respectively. The accompanying balance sheets include accounts payable to Griffin for citrus production, harvesting and processing costs in the amount of $312,045 and $373,303 at August 31, 1995 and 1994, respectively. Other Transactions __________________ The Company purchased fertilizer and other miscellaneous supplies, services, and operating equipment from Griffin, on a competitive bid basis, for use in its cattle, sugarcane, sod and citrus operations. Such purchases totaled $4,190,784, $3,282,467 and $3,020,773 during the years ended August 31, 1995, 1994 and 1993, respectively. (10) Commitment __________ During October 1992 the Company entered into an agreement to donate land, improvements and other items, to the State of Florida, to be used as a site for a new university. The gift included 975 acres of land, road construction, engineering and planning services, assistance with utility costs and academic chairs. The commitment was recorded as a contribution in May 1994 when the title to the land was transferred. Costs related to road construction have been accrued and capitalized into land. Other costs will be expensed as incurred. (11) Business Segment Information ____________________________ The Company is primarily engaged in agricultural operations. The Company is also engaged in retail land sales and, from time to time, sells real estate considered surplus to its operating needs. Information about the Company's operations (in thousands) for the years ended August 31, 1995, 1994 and 1993 is summarized as follows:
1995 1994 1993 ________ ________ ________ Revenues: Agriculture: Citrus $ 19,674 $ 18,796 $ 16,466 Sugarcane 6,026 6,839 5,011 Ranch 2,952 5,518 3,864 ________ ________ ________ Total agriculture 28,652 31,153 25,341 Real estate 8,026 4,268 487 General corporate revenue 2,893 3,081 2,735 ________ ________ ________ Consolidated total $ 39,571 $ 38,502 $ 28,563 ________ ________ ________ ________ ________ ________ Operating income (loss): Agriculture: Citrus $ 5,412 $ 5,424 $ 3,117 Sugarcane 1,760 2,117 955 Ranch 506 1,669 908 ________ ________ ________ Total agriculture 7,678 9,210 4,980 Real estate 7,585 3,726 (121) General corporate revenue 2,893 3,081 2,735 ________ ________ ________ Total operating income 18,156 16,017 7,594 Interest expense (1,176) (675) (508) General corporate expenses (2,514) (3,639) (2,626) ________ ________ ________ Income before income taxes and cumulative effect $ 14,466 $ 11,703 $ 4,460 ________ ________ ________ ________ ________ ________ 1995 1994 1993 ________ ________ ________ Capital expenditures: Agriculture: Citrus $ 4,301 $ 3,977 $ 3,063 Sugarcane 743 540 1,671 Ranch 2,189 2,064 1,925 Sod 78 14 211 Farm lands 155 294 325 Heavy equipment 574 569 212 ________ ________ ________ Total agriculture 8,040 7,458 7,407 General corporate 300 167 219 ________ ________ ________ Consolidated total $ 8,340 $ 7,625 $ 7,626 ________ ________ ________ ________ ________ ________ 1995 1994 1993 ________ ________ ________ Depreciation, depletion and amortization: Agriculture: Citrus $ 1,731 $ 1,524 $ 1,411 Sugarcane 937 992 963 Ranch 1,035 862 1,053 Sod 81 83 83 Farm lands 5 2 1 Heavy equipment 295 255 166 ________ ________ ________ Total agriculture 4,084 3,718 3,677 General corporate 93 165 104 ________ ________ ________ Consolidated total $ 4,177 $ 3,883 $ 3,781 ________ ________ ________ ________ ________ ________ Identifiable assets: Agriculture: Citrus $ 43,449 $ 40,602 $ 35,292 Sugarcane 22,154 22,557 22,486 Ranch 12,619 9,354 8,777 Sod 1,474 1,380 1,372 Farm lands 887 736 384 Heavy equipment 1,699 1,503 1,140 ________ ________ ________ Total agriculture 82,282 76,132 69,451 Real estate 10,417 9,719 5,680 General corporate 16,308 16,334 15,385 ________ ________ ________ Consolidated total $109,007 $102,185 $ 90,516 ________ ________ ________ ________ ________ ________
Identifiable assets represents assets on hand at year-end which are allocable to a particular segment either by their direct use or by allocation when used jointly by two or more segments. General corporate assets consist principally of cash, temporary investments, mortgage notes receivable and property and equipment used in general corporate business.
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data (in thousands except for per share amounts) for the years ended August 31, 1995 and August 31, 1994, is as follows: Quarters End November 30, February 28, May 31, August 31, 1994 1993 1995 1994 1995 1994 1995 1994 _______ _______ _______ _______ _______ _______ _______ _______ Revenue: Citrus $ 3,447 $ 1,415 $ 6,803 $ 9,662 $ 6,104 $ 5,003 $ 3,320 $ 2,716 Sugarcane 1,162 1,064 3,861 4,485 848 1,102 155 188 Ranch 611 1,378 329 576 1,210 1,356 802 2,208 Property sales 20 100 17 61 61 4,066 7,928 42 Interest 246 344 274 253 238 193 240 256 Other revenues 390 389 372 372 604 696 529 577 _______ _______ _______ _______ _______ _______ _______ _______ Total revenue 5,876 4,690 11,656 15,409 9,065 12,416 12,974 5,987 _______ _______ _______ _______ _______ _______ _______ _______ Costs and expenses: Citrus 3,141 1,397 5,153 6,885 4,633 3,799 1,335 1,292 Sugarcane 792 871 2,960 3,336 486 585 28 (70) Ranch 447 914 192 234 975 972 832 1,729 Interest 219 147 318 146 407 208 232 174 Other 638 782 650 750 642 1,457 1,025 1,191 _______ _______ _______ _______ _______ _______ _______ _______ Total costs and expenses 5,237 4,111 9,273 11,351 7,143 7,021 3,452 4,316 _______ _______ _______ _______ _______ _______ _______ _______ Income before income taxes 639 579 2,383 4,058 1,922 5,395 9,522 1,671 Provision for income taxes 218 201 843 1,397 695 1,919 3,768 458 _______ _______ _______ _______ _______ _______ _______ _______ Net income $ 421 $ 378 $ 1,540 $ 2,661 $ 1,227 $ 3,476 $ 5,754 $ 1,213 _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ Net income per share $ .06 $ .05 $ .22 $ .38 $ .17 $ .49 $ .82 $ .18 _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ The weighted average number of shares outstanding totaled 7,027,827 shares during each of the periods presented above.
Item 9. Disagreements on Accounting and Financial Disclosure. _______________________________________________________________________ There were no disagreements on accounting and financial disclosures. PART III ________ Item 10. Directors and Executive Officers of the Registrant. _____________________________________________________________________ For information with respect to the executive officers of the registrant, see "Executive Officers of the Registrant" at the end of Part I of this report. The information called for regarding directors is incorporated by reference to Proxy Statement dated November 10, 1995. Item 11. Executive Compensation. _________________________________________ Item 12. Security Ownership of Certain Beneficial Owners and _____________________________________________________________________ Management. ___________ Item 13. Certain Relationships and Related Transactions. _________________________________________________________________ Information called for by Items 11, 12 and 13 is incorporated by reference to Proxy Statement dated November 10, 1995. PART IV _______ Item 14. Exhibits, Financial Statement Schedules and Reports _____________________________________________________________________ on Form 8-K. ____________ (a)1. Financial Statements: ____________________ Included in Part II, Item 8 of this Report Report of Independent Certified Public Accountants Consolidated Balance Sheets - August 31, 1995 and 1994 Consolidated Statements of Operations - For the Years Ended August 31, 1995, 1994 and 1993 Consolidated Statements of Stockholders' Equity - For the Years Ended August 31, 1995, 1994 and 1993 Consolidated Statements of Cash Flows - For the Years Ended August 31, 1995, 1994 and 1993 (a)2. Financial Statement Schedules: _____________________________ Selected Quarterly Financial Data - For the Years Ended August 31, 1995 and 1994 - Included in Part II, Item 8 Schedule I - Marketable Securities and Other Investments - For Year Ended August 31, 1995 Schedule V - Property, Plant and Equipment - For the Years Ended August 31, 1995, 1994 and 1993 Schedule VI - Reserves for Depreciation, Depletion and Amortization of Property, Plant and Equipment - For the Years Ended August 31, 1995, 1994 and 1993 Schedule IX - Supplementary Income Statement Information - For the Years Ended August 31, 1995, 1994 and 1993 All other schedules not listed above are not submitted because they are not applicable or not required or because the required information is included in the financial statements or notes thereto. (a)3. Exhibits: ________ (3) Articles of Incorporation: * Schedule I - Restated Certificate of Incorporation, Dated February 17, 1972 Schedule II - Certificate of Amendment to Certificate of Incorporation, Dated January 14, 1974 Schedule III - Amendment to Articles of Incorporation, Dated January 14, 1987 Schedule IV - Amendment to Articles of Incorporation, Dated December 27, 1988 Schedule V - By-Laws of Alico, Inc., Amended to September 13, 1994 (4) Instruments Defining the Rights of Security Holders, Including Indentures - Not Applicable (9) Voting Trust Agreement - Not Applicable (10) Material Contracts - Citrus Processing and Marketing Agreement with Ben Hill Griffin, Inc., dated November 2, 1983, a Continuing Contract. * (11) Statement - Computation of Per Share Earnings (12) Statement - Computation of Ratios (18) Change in Accounting Principal - Not Applicable (19) Annual Report to Security Holders - By Reference (21) Subsidiaries of the Registrant - Not Applicable (22) Published Report Regarding Matters Submitted to Vote of Security Holders - Not Applicable (23) Consents of Experts and Counsel - Not Applicable (24) Power of Attorney - Not Applicable (28) Information From Reports Furnished to State Insurance Regulatory Authorities - Not Applicable (99) Additional Exhibits - None (b)3. Reports on Form 8-K: ___________________ Form 8-K dated December 13, 1994 regarding re-election of Directors and election of Officers. * Material has been filed with Securities and Exchange Commission and NASDAQ and may be obtained upon request.
ALICO, INC. SCHEDULE I Marketable Securities and Other Investments August 31, 1995 COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E ________ ________ ________ ________ ________ Amount of Which Each Portfolio of Equity Secu- rity Issues and Number of Shares or Each Other Se- Name of Issuer Units-Principal Market Value of Each curity Issue and Title of Amounts of Bonds Issue at Balance Sheet Carried in the Each Issue and Notes Cost of Each Issue Date Balance Sheet ______________ ________________ __________________ ______________________ _______________ Municipal Bonds $3,612,500 $3,587,139 $3,777,363 $3,777,363 Mutual Funds 2,125,582 2,125,582 2,302,296 2,302,296 Preferred Stocks 80,600 2,309,614 2,394,185 2,394,185 Common Stocks 27,011 587,511 599,545 599,545 Other Investments 376,463 376,463 337,547 337,547 __________ __________ __________ Total: $8,986,309 $9,410,936 $9,410,936 __________ __________ __________ __________ __________ __________
ALICO, INC. SCHEDULE V PROPERTY, PLANT AND EQUIPMENT COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F ________ _________ _________ __________ _______________ ___________ Balance Other Changes Balance at Beginning Additions Retirements Debit and/or Close of Description of Period at Cost or Sales Credit-Describe Period ___________ _________ _________ ___________ _______________ ___________ For Year Ended August 31, 1995 ______________________________ Land $14,574,228 $ 159,902 $ 324,333 $14,409,797 Roads 403,107 86,106 489,213 Agricultural Land Preparation 9,906 9,906 Forest Improvements 102,818 2,792 100,026 Pasture Improvements 1,997,036 366,383 2,363,419 Buildings 2,907,306 147,043 19,514 3,034,835 Feeding and Watering Facilities for Cattle Herd 32,886 3,600 36,486 Water Control Facilities 871,337 871,337 Fences 188,806 79,107 39,102 228,811 Cattle Pens 118,149 44,658 7,588 155,219 Citrus Groves, Including Irrigation Systems 32,761,874 3,611,450 196,363 36,176,961 Equipment 5,980,970 1,386,613 552,521 6,815,062 Breeding Herd 10,979,640 1,622,552 508,013 12,094,179 Sugarcane-Land Preparation,Etc. 12,761,667 629,125 483,152 12,907,640 Sod-Land Preparation,Etc. 1,080,849 48,305 10,896 1,118,258 Farm Land Preparation 736,778 155,440 892,218 ___________ __________ __________ _________________ ___________ $85,507,357 $8,340,284 $2,144,274 $0 $91,703,367 ___________ __________ __________ _________________ ___________ ___________ __________ __________ _________________ ___________
ALICO, INC. SCHEDULE V PROPERTY, PLANT AND EQUIPMENT COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F ________ __________ __________ ___________ ______________ ___________ Balance Other Changes Balance at Beginning Additions Retirements Debit and/or Close of Description of Period at Cost or Sales Credit-Describe Period ___________ __________ __________ ___________ _______________ __________ For Year Ended August 31, 1994 ______________________________ Land $14,891,438 $ 61,466 $ 301,327 ($77,349) * $14,574,228 Roads 371,164 31,943 403,107 Agricultural Land Preparation 9,906 9,906 Forest Improvements 102,818 102,818 Pasture Improvements 1,546,508 450,528 1,997,036 Buildings 2,784,232 353,003 196,276 (33,653) * 2,907,306 Feeding and Watering Facilities for Cattle Herd 32,886 32,886 Water Control Facilities 871,337 871,337 Fences 200,158 3,936 15,288 188,806 Cattle Pens 138,380 35,244 55,475 118,149 Citrus Groves, Including Irrigation Systems 29,430,781 3,347,928 33,191 16,356 * 32,761,874 Equipment 5,266,127 1,220,158 538,968 33,653 * 5,980,970 Breeding Herd 10,664,853 1,371,832 1,057,045 10,979,640 Sugarcane-Land Preparation,Etc. 12,787,783 446,203 502,808 30,489 * 12,761,667 Sod-Land Preparation,Etc. 1,104,105 13,759 6,526 (30,489) * 1,080,849 Farm Land Preparation 382,179 293,606 60,993 * 736,778 ___________ __________ __________ _______ ___________ $80,584,655 $7,629,606 $2,706,904 $0 $85,507,357 ___________ __________ __________ _______ ___________ * Reclassification ___________ __________ __________ _______ ___________
ALICO, INC. SCHEDULE V PROPERTY, PLANT AND EQUIPMENT COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F ________ _________ _________ ___________ _______________ __________ Balance Other Changes Balance at Beginning Additions Retirements Debit and/or Close of Description of Period at Cost or Sales Credit-Describe Period ___________ _________ _________ ___________ _______________ __________ For Year Ended August 31, 1993 ______________________________ Land $14,766,668 $ 140,540 $ 15,770 $14,891,438 Roads 146,245 224,919 371,164 Agricultural Land Preparation 9,906 9,906 Forest Improvements 102,818 102,818 Pasture Improvements 1,367,008 211,033 31,533 1,546,508 Buildings 2,465,901 385,726 67,395 2,784,232 Feeding and Watering Facilities for Cattle Herd 145,599 112,713 32,886 Water Control Facilities 892,819 21,482 871,337 Fences 512,638 19,451 331,931 200,158 Cattle Pens 294,754 4,527 160,901 138,380 Citrus Groves, Including Irrigation Systems 28,065,771 2,690,898 1,325,888 29,430,781 Equipment 7,009,291 444,364 2,187,528 5,266,127 Breeding Herd 9,750,691 1,557,897 643,735 10,664,853 Horses, Saddles, Etc. 3,042 3,042 0 Sugarcane-Land Preparation,Etc. 11,567,753 1,417,279 197,249 12,787,783 Sod-Land Preparation,Etc. 897,507 206,598 1,104,105 Farm Land Preparation 59,601 322,578 382,179 ___________ __________ __________ ______________ ___________ $78,058,012 $7,625,810 $5,099,167 $0 $80,584,655 ___________ __________ __________ ______________ ___________ ___________ __________ __________ ______________ ___________
ALICO, INC. SCHEDULE VI Reserves for Depreciation, Depletion and Amortization of Property, Plant and Equipment ______________________________________________________________________________________ COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F ________ __________ _____________ ___________ ___________ __________ Additions Balance Charged to Other Changes Balance at Beginning Profit & Loss Add (Deduct) Close of Description of Period or Income Retirements Describe Period ___________ _________ _____________ ___________ ___________ __________ For the Year Ended August 31, 1995 __________________________________ Forest Improvements $ 2,792 $ $ 2,792 $ 0 Buildings 974,796 137,700 19,515 1,092,981 Feeding and Watering Facilities for Cattle Herd 19,034 2,707 21,741 Water Control Facilities 707,510 158,490 866,000 Fences 121,246 14,187 39,103 96,330 Cattle Pens 45,006 12,258 7,588 49,676 Citrus Groves, Including Irrigation System 7,834,438 1,364,102 196,362 9,002,178 Equipment 2,924,537 866,991 461,927 3,329,601 Breeding Herd 7,120,195 855,410 415,659 7,559,946 Sugarcane-Land Preparation, Etc. 2,521,318 714,115 483,152 2,752,281 Sod-Land Preparation, Etc. 129,539 46,514 1,852 174,201 Farm Land Preparation 3,426 4,725 8,151 ___________ __________ __________ __________ ___________ $22,403,837 $4,177,199 $1,627,950 $0 $24,953,086 ___________ __________ __________ __________ ___________ ___________ __________ __________ __________ ___________
ALICO, INC. SCHEDULE VI Reserves for Depreciation, Depletion and Amortization of Property, Plant and Equipment ______________________________________________________________________________________ COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F ________ _________ ____________ ___________ ___________ __________ Additions Balance Charged to Other Changes Balance at Beginning Profit & Loss Add (Deduct) Close of Description of Period or Income Retirements Describe Period ___________ _________ _____________ ___________ ___________ __________ For the Year Ended August 31, 1994 __________________________________ Forest Improvements $ 2,792 $ $ $ 2,792 Pasture Improvements 0 0 Buildings 995,148 130,828 151,180 974,796 Feeding and Watering Facilities for Cattle Herd 16,394 2,640 19,034 Water Control Facilities 534,310 173,200 707,510 Fences 120,349 16,185 15,288 121,246 Cattle Pens 78,189 10,977 44,160 45,006 Citrus Groves, Including Irrigation Systems 6,671,252 1,196,377 33,191 7,834,438 Equipment 2,674,991 778,631 529,085 2,924,537 Breeding Herd 6,866,391 699,540 445,736 7,120,195 Sugarcane-Land Preparation, Etc. 2,269,475 754,651 502,808 2,521,318 Sod-Land Preparation, Etc. 83,420 46,402 283 129,539 Farm Land Preparation 996 2,430 3,426 ___________ __________ __________ _________ ___________ $20,313,707 $3,811,861 $1,721,731 $0 $22,403,837 ___________ __________ __________ _________ ___________ ___________ __________ __________ _________ ___________
ALICO, INC. SCHEDULE VI Reserves for Depreciation, Depletion and Amortization of Property, Plant and Equipment ______________________________________________________________________________________ COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F ________ _________ _____________ _________ ____________ __________ Additions Balance Charged to Other Changes Balance at Beginning Profit & Loss Add (Deduct) Close of Description of Period or Income Retirements Describe Period ___________ _________ ____________ ___________ ________ __________ For the Year Ended August 31, 1993 __________________________________ Forest Improvements $ 2,792 $ $ $ 2,792 Pasture Improvements 31,444 31,444 0 Buildings 936,005 120,014 60,871 995,148 Feeding and Watering Facilities for Cattle Herd 125,855 3,266 112,727 16,394 Water Control Facilities 382,591 173,200 21,481 534,310 Fences 435,695 16,584 331,930 120,349 Cattle Pens 225,516 13,574 160,901 78,189 Citrus Groves, Including Irrigation Systems 6,903,485 1,093,658 1,325,891 6,671,252 Equipment 4,148,277 697,461 2,170,747 2,674,991 Breeding Herd 6,276,280 869,330 279,219 6,866,391 Horses, Saddles, Etc. 3,042 3,042 0 Sugarcane-Land Preparation, Etc. 1,720,294 746,430 197,249 2,269,475 Sod-Land Preparation, Etc. 37,287 46,133 83,420 Farm Land Preparation 0 996 996 ___________ __________ __________ ________ ___________ $21,228,563 $3,780,646 $4,695,502 $0 $20,313,707 ___________ __________ __________ ________ ___________ ___________ __________ __________ ________ ___________
ALICO, INC. ___________ SCHEDULE IX ___________ SUPPLEMENTARY INCOME STATEMENT INFORMATION __________________________________________ ____________________________________________________________________________________________________ COLUMN A COLUMN B ____________________________________________________________________________________________________ Charged to Costs and Expenses _____________________________ Years Ended August 31, ______________________ Item 1995 1994 1993 ____ ____ ____ ____ 1. Maintenance and repairs $ 948,602 $ 916,433 $ 907,517 2. Taxes, other than payroll and income taxes 1,539,544 1,794,973 1,392,564
EXHIBIT 11 ALICO, INC. Computation of Weighted Average Shares Outstanding as of August 31, 1995: Number of shares outstanding at August 31, 1994 7,027,827 _________ _________ Number of shares outstanding at August 31, 1995 7,027,827 _________ _________ Weighted Average 9/1/94 - 8/31/95 7,027,827 _________ _________ EXHIBIT 12 ALICO, INC. Computation of Ratios: 1994 Current Assets $28,341,017 Current Liabilities 5,660,148 28,341,017 divided by 5,660,148 = 5.01:1 1995 Current Assets $31,735,862 Current Liabilities 5,656,454 31,735,862 divided by 5,656,454 = 5.61:1 Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ALICO, INC. (Registrant) November 14, 1995 Ben Hill Griffin, III Date President, Chief Executive Officer and Director (Signature) November 14, 1995 W. Bernard Lester Date Executive Vice President, Chief Operating Officer and Director (Signature) November 14, 1995 L. Craig Simmons Date Vice President and Chief Financial Officer (Signature) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated: J. C. Barrow, Jr. K. E. Hartsaw Director Director (Signature) (Signature) Walker E. Blount, Jr. Lloyd G. Hendry Director Director (Signature) (Signature) Ben Hill Griffin, IV Thomas E. Oakley Director Director (Signature) (Signature) John C. Updike Director (Signature) November 14, 1995 Date