Quarterly report pursuant to sections 13 or 15(d)

Disclosures about reportable segments

v2.3.0.11
Disclosures about reportable segments
 6 Months Ended
Mar. 31, 2012
Disclosures about reportable segments [Abstract]  
Disclosures about reportable segments

Note 7. Disclosures about reportable segments

Alico has six reportable segments: Bowen, Citrus Groves, Sugarcane, Cattle, Real Estate and Land Leasing and Rentals. All of the Company's operations are located in Florida. Intersegment sales and transfers are accounted for as if the sales or transfers were to third parties at current market prices.

Agricultural Segments:

  • Bowen operations include supply chain management services for both Alico's citrus crop and other growers in the State of Florida. Bowen's operations also include the purchase and resale of citrus fruit.
  • Citrus Groves operations consist of cultivating citrus trees in order to produce citrus fruit for delivery to the fresh and processed citrus markets in the State of Florida.
  • Sugarcane operations consist of cultivating sugarcane for sale to a sugar processor.
  • Cattle operations primarily include production of beef cattle for sale and raising replacement heifers.

Goods and services produced by these segments are sold to wholesalers and processors in the United States who prepare the products for consumption.

Non-agricultural Segments

  • The Real Estate segment, operated on behalf of Alico by ALDI, is engaged in the planning and strategic positioning of all the Company's land, which includes seeking entitlement of the land assets in order to obtain, enhance or preserve rights to develop the property in the future and negotiating and/or renegotiating sales contracts.
  • The Land Leasing and Rental segment leases land to others on a tenant-at-will basis for grazing, farming, oil and mineral exploration, recreational and other uses.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies herein and in the Annual Report on Form 10-K. Total revenues represent sales to unaffiliated customers, as reported in the Company's Condensed Consolidated Statements of Operations (Unaudited). All intercompany transactions have been eliminated.

The Company's reportable segments are strategic business units that offer different products and services. They are managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company evaluates each segment's performance based on direct margins from operations before general and administrative costs, interest expense and income taxes, not including nonrecurring gains and losses.

 

The following table summarizes the performance of the Company's segments and the related depreciation expense for the three and six month periods ended March 31, 2012 and 2011, and the related assets as of March 31, 2012 and September 30, 2011:

 

 

 

  

Three months ended

March 31,

  

Six months ended

March 31,
    2012   2011   2012   2011
Revenues (from external customers except as noted)                
Bowen   $ 20,288     $ 12,169     $ 30,794     $ 18,913  
Intersegment sales through Bowen     5,080       4,037       6,913       5,147  
Citrus Groves     25,094       19,404       33,502       24,636  
Sugarcane     7,572       3,748       13,659       7,461  
Cattle     378       292       600       449  
Real Estate     -       -       -       -  
Land Leasing and Rentals     660       685       1,320       1,291  
Revenue from segments     59,072       40,335       86,788       57,897  
Other operations     140       192       333       295  
Less: intersegment revenues eliminated     (5,080 )     (4,037 )     (6,913 )     (5,147 )
Total operating revenue   $ 54,132     $ 36,490     $ 80,208     $ 53,045  
                                 
Operating expenses                                
Bowen   $ 19,532     $ 11,767     $ 29,727     $ 18,330  
Intersegment expenses through Bowen     5,080       4,037       6,913       5,147  
Citrus Groves     13,851       12,416       19,008       15,971  
Sugarcane     5,912       3,534       10,551       6,838  
Cattle     168       163       318       262  
Real Estate     117       124       242       274  
Land Leasing and Rentals     262       301       516       616  
Segment operating expenses     44,922       32,342       67,275       47,438  
Other operations     17       117       30       193  
Less: intersegment expenses eliminated     (5,080 )     (4,037 )     (6,913 )     (5,147 )
Total operating expenses   $ 39,859     $ 28,422     $ 60,392     $ 42,484  
                                 
Gross profit (loss):                                
Bowen   $ 756     $ 402     $ 1,067     $ 583  
Citrus Groves     11,243       6,988       14,494       8,665  
Sugarcane     1,660       214       3,108       623  
Cattle     210       129       282       187  
Real Estate     (117 )     (124 )     (242 )     (274 )
Land Leasing and Rentals     398       384       804       675  
Gross profit from segments     14,150       7,993       19,513       10,459  
Other     123       75       303       102  
Gross Profit   $ 14,273     $ 8,068     $ 19,816     $ 10,561  

 

 

  

Three months ended

March 31,

  

Six months ended

March 31,
    2012   2011   2012   2011
Depreciation, depletion and amortization:                                
Bowen   $ 57     $ 79     $ 101     $ 129  
Citrus Groves     522       483       1,043       975  
Sugarcane     1,109       785       1,920       1,274  
Cattle     304       261       536       523  
Land Leasing and Rentals     110       45       217       90  
Total segment depreciation and amortization     2,102       1,653       3,817       2,991  
Other depreciation, depletion and amortization     109       194       290       482  
Total depreciation, depletion and amortization   $ 2,211     $ 1,847     $ 4,107     $ 3,473  

 

 

   

March 31,

2012

    

September 30,

2011

  
Total assets:                
Bowen   $ 4,721     $ 2,888  
Citrus Groves     48,085       45,554  
Sugarcane     55,358       53,213  
Cattle     13,520       6,241  
Real Estate     13,244       12,932  
Land Leasing and Rentals     5,307       5,524  
Segment assets     140,235       126,352  
Other corporate assets     45,242       53,683  
                 
Total assets   $ 185,477     $ 180,035