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þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Florida (State or other jurisdiction of incorporation or organization) | 59-0906081 IRS Employer identification number |
P.O. Box 338, La Belle, Florida (Address of principal executive offices) | 33975 Zip code | |
Registrant’s telephone number including area code | (863) 675-2966 |
Title of class: | Name of each exchange on which registered: | |
COMMON CAPITAL STOCK, $1.00 Par value, Non-cumulative | NASDAQ |
FORM 10-K
For the year ended August 31, 2007
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Fiscal years ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenues | ||||||||||||
Agriculture: | ||||||||||||
Bowen Brothers Fruit | $ | 52,716 | $ | 30,869 | $ | — | ||||||
Citrus groves | 47,484 | 22,188 | 26,231 | |||||||||
Sugarcane | 9,432 | 8,926 | 9,323 | |||||||||
Cattle | 9,977 | 5,700 | 11,017 | |||||||||
Alico Plant World | 2,832 | 3,270 | 2,587 | |||||||||
Vegetables | 3,803 | 2,389 | — | |||||||||
Sod | 2,180 | 1,528 | 402 | |||||||||
Native trees and shrubs | 249 | 142 | 231 | |||||||||
Agriculture operations revenue | 128,673 | 75,012 | 49,791 | |||||||||
Real estate activities | 3,329 | 113 | 810 | |||||||||
Land leasing and rentals | 1,495 | 1,369 | 1,933 | |||||||||
Mining royalties | 1,340 | 940 | 2,991 | |||||||||
Total operating revenue | $ | 134,837 | $ | 77,434 | $ | 55,525 | ||||||
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Fiscal years ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Gross profit (loss): | ||||||||||||
Agriculture: | ||||||||||||
Bowen Brothers Fruit | $ | 930 | $ | (268 | ) | $ | — | |||||
Citrus groves | 24,057 | 7,614 | 6,247 | |||||||||
Sugarcane | 599 | 360 | 499 | |||||||||
Cattle | 255 | 786 | 2,109 | |||||||||
Alico Plant World | 17 | (1,103 | ) | 459 | ||||||||
Vegetables | 496 | 985 | — | |||||||||
Sod | 862 | 688 | (78 | ) | ||||||||
Native trees and shrubs | 249 | 142 | 231 | |||||||||
Gross profit from agricultural operations | 27,465 | 9,204 | 9,467 | |||||||||
Real estate activities | (79 | ) | 52 | 482 | ||||||||
Land leasing and rentals | 1,102 | 917 | 1,294 | |||||||||
Mining royalties | 1,214 | 940 | 2,991 | |||||||||
Net casualty loss (recovery) | — | 3,628 | (1,888 | ) | ||||||||
Subtotal | 29,702 | 14,741 | 12,346 | |||||||||
Profits from the sale of bulk real estate | 1,257 | 4,369 | 5,465 | |||||||||
Net interest and investment income | 1,719 | 4,987 | 2,148 | |||||||||
Corporate general and administrative and other | (13,276 | ) | (11,413 | ) | (10,721 | ) | ||||||
Income before income taxes | 19,402 | 12,684 | 9,238 | |||||||||
Provision for income taxes | 33,246 | 6,215 | 3,148 | |||||||||
Net (loss) income | $ | (13,844 | ) | $ | 6,469 | $ | 6,090 | |||||
Total Assets: | ||||||||||||
Agriculture: | ||||||||||||
Bowen Brothers Fruit | $ | 3,042 | $ | 3,096 | ||||||||
Citrus groves | 54,558 | 59,464 | ||||||||||
Sugarcane | 46,053 | 47,894 | ||||||||||
Cattle | 20,813 | 23,919 | ||||||||||
Alico Plant World | 6,711 | 6,515 | ||||||||||
Vegetables | 2,766 | 1,981 | ||||||||||
Sod | 5,362 | 4,191 | ||||||||||
Subtotal Agriculture | 139,305 | 147,060 | ||||||||||
Mining | 10,487 | 10,568 | ||||||||||
Other Corporate assets | 131,095 | 105,125 | ||||||||||
Total assets | $ | 280,887 | $ | 262,753 | ||||||||
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• | population migration; | ||
• | national, regional and local economic conditions; | ||
• | conditions in local real estate markets (e.g., supply of land verses demand); | ||
• | competition from other available property; | ||
• | current level of, or potential availability of roads and utilities; | ||
• | availability of governmental entitlements; | ||
• | government regulation and changes in real estate, zoning, land use, environmental or tax laws; | ||
• | interest rates and the availability of financing, and; | ||
• | potential liability under environmental and other laws. |
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Land Use Summary
August 31, 2007
Total | Hendry | Polk | Collier | Glades | Lee | |||||||||||||||||||
Citrus: | ||||||||||||||||||||||||
Producing acres | 10,582 | 3,048 | 3,405 | 4,129 | — | — | ||||||||||||||||||
Support and nonproductive* | 6,303 | 2,317 | 789 | 3,197 | — | — | ||||||||||||||||||
Total Citrus | 16,885 | 5,365 | 4,194 | 7,326 | — | — | ||||||||||||||||||
Sugarcane: | ||||||||||||||||||||||||
Producing acres | 10,254 | 10,254 | — | — | — | — | ||||||||||||||||||
Support and nonproductive* | 11,541 | 11,541 | — | — | — | — | ||||||||||||||||||
Total Sugarcane | 21,795 | 21,795 | — | — | — | — | ||||||||||||||||||
Ranch: | ||||||||||||||||||||||||
Improved pasture | 21,201 | 20,906 | 295 | — | — | — | ||||||||||||||||||
Semi-improved pasture | 21,752 | 20,038 | 602 | 1,112 | — | — | ||||||||||||||||||
Native pasture | 19,513 | 11,846 | 5,949 | 1,718 | — | — | ||||||||||||||||||
Support and nonproductive* | 24,263 | 23,207 | 376 | 680 | — | — | ||||||||||||||||||
Total Ranch | 86,729 | 75,997 | 7,222 | 3,510 | — | — | ||||||||||||||||||
Farming: | ||||||||||||||||||||||||
Leased acres | 4,886 | 4,886 | — | — | — | — | ||||||||||||||||||
Support and nonproductive* | 1,008 | 1,008 | — | — | — | — | ||||||||||||||||||
Total farming | 5,894 | 5,894 | — | — | — | — | ||||||||||||||||||
Sod: | ||||||||||||||||||||||||
Producing acres | 2,193 | 2,193 | — | — | — | — | ||||||||||||||||||
Support and nonproductive* | 363 | 363 | — | — | — | — | ||||||||||||||||||
Total sod | 2,556 | 2,556 | — | — | — | — | ||||||||||||||||||
Rock and Sand Mining | 526 | — | — | — | 526 | — | ||||||||||||||||||
Commercial & Residential | 1,081 | 54 | 66 | — | — | 961 | ||||||||||||||||||
Total | 135,466 | 111,661 | 11,482 | 10,836 | 526 | 961 | ||||||||||||||||||
* | Includes buildings, roads, water management systems, fallow lands and wetlands. |
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2007 | 2006 | |||||||||||||||
Price | Price | |||||||||||||||
High | Low | High | Low | |||||||||||||
First Quarter | $ | 62.92 | $ | 54.03 | $ | 51.95 | $ | 42.06 | ||||||||
Second Quarter | $ | 57.75 | $ | 47.04 | $ | 47.50 | $ | 42.47 | ||||||||
Third Quarter | $ | 62.24 | $ | 46.25 | $ | 58.76 | $ | 42.04 | ||||||||
Fourth Quarter | $ | 65.00 | $ | 45.86 | $ | 59.35 | $ | 48.40 |
Record Date | Payment Date | Amount Paid Per Share | ||||
September 30, 2005 | October 15, 2005 | $ | 0.250 | |||
December 31, 2005 | January 15, 2006 | $ | 0.250 | |||
March 31, 2006 | April 15, 2006 | $ | 0.250 | |||
June 30, 2006 | July 15, 2006 | $ | 0.250 | |||
September 29, 2006 | October 15, 2006 | $ | 0.275 | |||
December 29, 2006 | January 15, 2007 | $ | 0.275 | |||
March 30, 2007 | April 16, 2007 | $ | 0.275 | |||
June 29, 2007 | July 16, 2007 | $ | 0.275 |
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Number of | Maximum | |||||||||||||||
Shares purchased | number of | |||||||||||||||
Total | Average | as part of | shares that can | |||||||||||||
number of | price | publicly | yet be purchased | |||||||||||||
shares | paid per | announced plans | under the plan or | |||||||||||||
Period | purchased | share | or programs (1)(2) | programs | ||||||||||||
06/01/07 — 06/30/07 | — | — | — | |||||||||||||
07/01/07 — 07/31/07 | — | — | — | |||||||||||||
08/01/07 — 08/31/07 | 7,000 | 51.98 | 7,000 | 87,230 | ||||||||||||
7,000 | $ | 51.98 | 7,000 | 87,230 | ||||||||||||
�� |
(1) | On November 17, 2005 the Company publicly announced that its Board of Directors had authorized a plan to purchase up to 31,000 shares of the Company’s common stock through August 31, 2007 for the purpose of funding its Director Stock Compensation Plan. | |
(2) | During January 2007, Alico announced that its Board of Directors had authorized the repurchase of up to 100,000 shares of the Company’s common stock through August 31, 2010, in addition to the previously announced repurchases, for the purpose of funding restricted stock grants under its 1998 Incentive Equity Plan in order to provide restricted stock to eligible Senior Managers to align their interests with those of the Company’s shareholders. |
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Number of securities | ||||||||||||
remaining available | ||||||||||||
for future issuance | ||||||||||||
Number of securities | under equity | |||||||||||
to be issued upon | Weighted average | compensation plans | ||||||||||
exercise of | exercise price of | (excluding securities | ||||||||||
outstanding options, | outstanding options, | reflected in | ||||||||||
Plan category | warrants and rights | warrants and rights | column (a) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders | 44,158 | $ | 17.90 | 273,815 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 44,158 | $ | 17.90 | 273,815 | ||||||||
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Years Ended August 31, | ||||||||||||||||||||
Description | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||||||||
Operating revenue | $ | 134,837 | $ | 77,434 | $ | 55,525 | $ | 52,057 | $ | 48,285 | ||||||||||
Operating expenses | 105,135 | 62,693 | 43,179 | 39,306 | 43,582 | |||||||||||||||
Income from continuing operations | 16,228 | 2,982 | 2,321 | 6,667 | 4,703 | |||||||||||||||
Income from continuing operations per weighted average common share | $ | 2.20 | $ | 0.40 | $ | 0.32 | $ | 0.92 | $ | 0.66 | ||||||||||
Total Revenue | 143,930 | 92,594 | 75,384 | 87,779 | 66,532 | |||||||||||||||
Total Costs and Expenses | 124,528 | 79,910 | 66,146 | 59,979 | 47,448 | |||||||||||||||
Income Taxes | 33,246 | 6,215 | 3,148 | 9,987 | 6,425 | |||||||||||||||
Net (loss) Income | (13,844 | ) | 6,469 | 6,090 | 17,813 | 12,659 | ||||||||||||||
Average Number of Shares Outstanding | 7,369 | 7,368 | 7,331 | 7,219 | 7,106 | |||||||||||||||
Net (loss) Income Per Share | (1.88 | ) | 0.88 | 0.83 | 2.47 | 1.78 | ||||||||||||||
Cash Dividend Declared Per Share | 1.10 | 1.03 | 1.25 | 0.60 | 0.35 | |||||||||||||||
Current Assets | 127,216 | 110,913 | 128,977 | 125,925 | 90,204 | |||||||||||||||
Total Assets | 280,887 | 262,753 | 247,694 | 238,242 | 216,545 | |||||||||||||||
Current Liabilities | 17,519 | 18,078 | 17,819 | 10,136 | 10,124 | |||||||||||||||
Ratio-Current Assets to Current Liabilities | 7.26:1 | 6.14:1 | 7.24:1 | 12.42:1 | 8.91:1 | |||||||||||||||
Working Capital | 109,697 | 92,835 | 111,158 | 115,789 | 80,080 | |||||||||||||||
Long-Term Obligations | 145,164 | 103,572 | 85,689 | 82,908 | 80,239 | |||||||||||||||
Total Liabilities | 161,941 | 121,650 | 103,508 | 93,044 | 90,363 | |||||||||||||||
Stockholder’s Equity | 118,946 | 141,103 | 144,186 | 145,198 | 126,182 |
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Fiscal years ended August 31, | ||||||||||||
Summary of results (in thousands): | 2007 | 2006 | 2005 | |||||||||
Operating revenue | $ | 134,837 | $ | 77,434 | $ | 55,525 | ||||||
Gross profit | 29,702 | 14,741 | 12,346 | |||||||||
General & administrative expenses | 13,474 | 11,759 | 10,025 | |||||||||
Income from operations | 16,228 | 2,982 | 2,321 | |||||||||
Profit on sale of real estate | 1,257 | 4,369 | 5,465 | |||||||||
Interest and investment income | 7,461 | 9,053 | 4,443 | |||||||||
Interest expense | 5,742 | 4,066 | 2,295 | |||||||||
Other income (expense) | 198 | 346 | (696 | ) | ||||||||
Provision for income taxes | 33,246 | $ | 6,215 | $ | 3,148 | |||||||
Effective income tax rate | 171.3 | % | 49.0 | % | 34.1 | % | ||||||
Net (loss) income | ($13,844 | ) | $ | 6,469 | $ | 6,090 |
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Fiscal years ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenues | ||||||||||||
Agriculture: | ||||||||||||
Bowen Brothers Fruit | $ | 52,716 | $ | 30,869 | $ | — | ||||||
Citrus groves | 47,484 | 22,188 | 26,231 | |||||||||
Sugarcane | 9,432 | 8,926 | 9,323 | |||||||||
Cattle | 9,977 | 5,700 | 11,017 | |||||||||
Alico Plant World | 2,832 | 3,270 | 2,587 | |||||||||
Vegetables | 3,803 | 2,389 | — | |||||||||
Sod | 2,180 | 1,528 | 402 | |||||||||
Native trees and shrubs | 249 | 142 | 231 | |||||||||
Agriculture operations revenue | 128,673 | 75,012 | 49,791 | |||||||||
Real estate activities | 3,329 | 113 | 810 | |||||||||
Land leasing and rentals | 1,495 | 1,369 | 1,933 | |||||||||
Mining royalties | 1,340 | 940 | 2,991 | |||||||||
Total operating revenue | $ | 134,837 | $ | 77,434 | $ | 55,525 | ||||||
Fiscal years ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Gross profit (loss): | ||||||||||||
Agriculture: | ||||||||||||
Bowen Brothers Fruit | $ | 930 | $ | (268 | ) | $ | — | |||||
Citrus groves | 24,057 | 7,614 | 6,247 | |||||||||
Sugarcane | 599 | 360 | 499 | |||||||||
Cattle | 255 | 786 | 2,109 | |||||||||
Alico Plant World | 17 | (1,103 | ) | 459 | ||||||||
Vegetables | 496 | 985 | — | |||||||||
Sod | 862 | 688 | (78 | ) | ||||||||
Native trees and shrubs | 249 | 142 | 231 | |||||||||
Gross profit from agricultural operations | 27,465 | 9,204 | 9,467 | |||||||||
Real estate activities | (79 | ) | 52 | 482 | ||||||||
Land leasing and rentals | 1,102 | 917 | 1,294 | |||||||||
Mining royalties | 1,214 | 940 | 2,991 | |||||||||
Net casualty loss (recovery) | — | 3,628 | (1,888 | ) | ||||||||
Gross profit | 29,702 | 14,741 | 12,346 | |||||||||
Profits from the sale of bulk real estate | 1,257 | 4,369 | 5,465 | |||||||||
Net interest and investment income | 1,719 | 4,987 | 2,148 | |||||||||
Corporate general and administrative and other | (13,276 | ) | (11,413 | ) | (10,721 | ) | ||||||
Income before income taxes | $ | 19,402 | $ | 12,684 | $ | 9,238 | ||||||
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Less than | 1 - 3 | 3 - 5 | 5 + | |||||||||||||||||
Total | 1 year | years | years | years | ||||||||||||||||
Contractual obligations | ||||||||||||||||||||
Long-term debt | $ | 136,889 | $ | 1,350 | $ | 130,992 | $ | 2,542 | $ | 2,005 | ||||||||||
Expected interest on debt | 28,634 | 9,397 | 18,532 | 522 | 183 | |||||||||||||||
Commissions | 3,205 | 21 | 747 | 2,149 | 288 | |||||||||||||||
Citrus purchase contracts | 5,650 | 5,650 | — | — | — | |||||||||||||||
Retirement benefits | 5,433 | 392 | 784 | 784 | 3,473 | |||||||||||||||
Deferred taxes | 15,089 | 282 | 10,506 | 3,456 | 845 | |||||||||||||||
Building & equipment additions | 550 | 550 | — | — | — | |||||||||||||||
Consulting contracts | 913 | 727 | 186 | — | — | |||||||||||||||
Leases — operating | 831 | 259 | 514 | 58 | — | |||||||||||||||
Total | $ | 197,194 | $ | 18,628 | $ | 162,261 | $ | 9,511 | $ | 6,794 | ||||||||||
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Estimated | ||||||||
Cost | Fair Value | |||||||
Marketable Securities and Short-term Investments (1) | ||||||||
Fixed Rate | $ | 37,837 | $ | 37,870 | ||||
Variable Rate | $ | 8,374 | $ | 8,372 |
(1) | See definition in Notes 1 and 2 in Notes to Consolidated Financial Statements. |
Aggregate | ||||
Fair | ||||
Values | ||||
Due in one year or less | $ | 30,341 | ||
Due between one and five years | 6,420 | |||
Due between five and ten years | 1,500 | |||
Due thereafter | 5,981 | |||
Total | $ | 44,242 | ||
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Item 8. | Financial Statements and Supplementary Data. |
Report of Independent Registered Certified Public Accounting Firm
To the Board of Directors and Stockholders
Alico, Inc.
LaBelle, Florida
We have audited the accompanying consolidated balance sheet of Alico, Inc. and Subsidiaries as of August 31, 2007, and the related consolidated statements of operations, stockholders’ equity and comprehensive income (loss), and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 statements presentation. We believe that our audit provides 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 Subsidiaries as of August 31, 2007, and the results of their operations and their cash flows for the year then ended in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Alico, Inc. and Subsidiaries internal control over financial reporting as of August 31, 2007, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated November 14, 2007 expressed an unqualified opinion on management’s assessment of the effectiveness of Alico, Inc.’s internal control over financial reporting and an unqualified opinion on the effectiveness of Alico, Inc.’s internal control over financial reporting.
/s/MCGLADREY & PULLEN, LLP
Orlando, Florida
November 14, 2007
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Report of Independent Registered Certified Public Accounting Firm
To the Stockholders and Board of Directors of Alico, Inc. and Subsidiaries
We have audited the accompanying consolidated balance sheet of Alico, Inc. and Subsidiaries as of August 31, 2006, and the related consolidated statements of operations, stockholders’ equity and comprehensive income (loss), and cash flows for each of the two years in the period ended August 31, 2006. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 the Company as of August 31, 2006, and the results of their operations and their cash flows for each of the two years in the period ended August 31, 2006, in conformity with U.S. generally accepted accounting principles.
/s/TEDDER, JAMES, WORDEN & ASSOCIATES, P.A.
Orlando, Florida
November 17, 2006
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(in thousands)
August 31, | ||||||||
2007 | 2006 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 34,825 | $ | 25,065 | ||||
Marketable securities available for sale | 46,242 | 50,100 | ||||||
Accounts receivable, net | 15,738 | 8,679 | ||||||
Mortgage and notes receivable | 487 | 47 | ||||||
Inventories | 25,214 | 24,545 | ||||||
Deferred tax asset | 2,312 | — | ||||||
Other current assets | 2,398 | 2,477 | ||||||
Total current assets | 127,216 | 110,913 | ||||||
Other assets: | ||||||||
Mortgages and notes receivable, net of current portion | 9,939 | 10,977 | ||||||
Investment and deposits | 3,262 | 2,919 | ||||||
Deferred tax asset | 3,950 | — | ||||||
Cash surrender value of life insurance, designated | 7,530 | 6,593 | ||||||
Total other assets | 24,681 | 20,489 | ||||||
Property, buildings and equipment | 178,917 | 179,689 | ||||||
Less accumulated depreciation | (49,927 | ) | (48,338 | ) | ||||
Net property, buildings and equipment | 128,990 | 131,351 | ||||||
Total assets | $ | 280,887 | $ | 262,753 | ||||
LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,328 | $ | 1,966 | ||||
Income taxes payable | 3,335 | $ | 1,304 | |||||
Current portion of notes payable | 1,350 | 3,315 | ||||||
Accrued expenses | 4,330 | 3,720 | ||||||
Dividends payable | 2,024 | 2,027 | ||||||
Accrued ad valorem taxes | 1,876 | 2,090 | ||||||
Deferred income taxes | — | 282 | ||||||
Other current liabilities | 2,276 | 3,374 | ||||||
Total current liabilities | 17,519 | 18,078 | ||||||
Notes payable, net of current portion | 135,539 | 60,687 | ||||||
Deferred income taxes, net of current portion | — | 14,807 | ||||||
Deferred retirement benefits, net of current portion | 5,041 | 4,952 | ||||||
Commissions payable, net of current portion, and deposits | 3,842 | 2,833 | ||||||
Other non-current liability | — | 20,293 | ||||||
Total liabilities | 161,941 | 121,650 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, no par value. Authorized 1,000 shares; issued, none | — | |||||||
Common stock, $1 par value. Authorized 15,000 shares; issued 7,376 shares; outstanding 7,357 in 2007 and 7,371 in 2006 | 7,376 | 7,376 | ||||||
Additional paid in capital | 10,169 | 9,691 | ||||||
Treasury stock, at cost | (1,046 | ) | (287 | ) | ||||
Accumulated other comprehensive (loss) income | 45 | (29 | ) | |||||
Retained earnings | 102,402 | 124,352 | ||||||
Total stockholders’ equity | 118,946 | 141,103 | ||||||
Total liabilities and stockholders’ equity | $ | 280,887 | $ | 262,753 | ||||
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(in thousands except per share data)
Years Ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Operating revenue | ||||||||||||
Agricultural operations | $ | 128,673 | $ | 75,012 | $ | 49,791 | ||||||
Non-agricultural operations | 2,835 | 2,309 | 4,924 | |||||||||
Real estate operations | 3,329 | 113 | 810 | |||||||||
Total operating revenue | 134,837 | 77,434 | 55,525 | |||||||||
Operating expenses | ||||||||||||
Agricultural operations | 101,208 | 65,808 | 40,324 | |||||||||
Non-agricultural operations | 519 | 452 | 639 | |||||||||
Real estate operations | 3,408 | 61 | 328 | |||||||||
Net casualty loss (recovery) | — | (3,628 | ) | 1,888 | ||||||||
Total operating expenses | 105,135 | 62,693 | 43,179 | |||||||||
Gross profit | 29,702 | 14,741 | 12,346 | |||||||||
Corporate general and administrative | 13,474 | 11,759 | 10,025 | |||||||||
Income from operations | 16,228 | 2,982 | 2,321 | |||||||||
Other income (expenses): | ||||||||||||
Profit on sales of bulk real estate: | ||||||||||||
Sales | 1,434 | 5,761 | 15,416 | |||||||||
Cost of sales | (177 | ) | (1,392 | ) | (9,951 | ) | ||||||
Profit on sales of bulk real estate, net | 1,257 | 4,369 | 5,465 | |||||||||
Interest & investment income | 7,461 | 9,053 | 4,443 | |||||||||
Interest expense | (5,742 | ) | (4,066 | ) | (2,295 | ) | ||||||
Other | 198 | 346 | (696 | ) | ||||||||
Total other income, net | 3,174 | 9,702 | 6,917 | |||||||||
Income before income taxes | 19,402 | 12,684 | 9,238 | |||||||||
Provision for income taxes | 33,246 | 6,215 | 3,148 | |||||||||
Net (loss) income | $ | (13,844 | ) | $ | 6,469 | $ | 6,090 | |||||
Weighted-average number of shares outstanding | 7,369 | 7,368 | 7,331 | |||||||||
Weighted-average number of shares outstanding assuming dilution | 7,377 | 7,379 | 7,347 | |||||||||
Per share amounts: | ||||||||||||
Basic | $ | (1.88 | ) | $ | 0.88 | $ | 0.83 | |||||
Diluted | $ | (1.88 | ) | $ | 0.88 | $ | 0.83 | |||||
Dividends | $ | 1.10 | $ | 1.03 | $ | 1.25 |
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Accumulated | ||||||||||||||||||||||||||||
Common Stock | Additional | Treasury | Other | |||||||||||||||||||||||||
Shares | Paid in | Stock | Comprehensive | Retained | ||||||||||||||||||||||||
Issued | Amount | Capital | at cost | Income | Earnings | Total | ||||||||||||||||||||||
Balances, August 31, 2004 | 7,309 | $ | 7,309 | $ | 7,800 | $ | 1,529 | $ | 128,560 | $ | 145,198 | |||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | — | — | — | — | 6,090 | 6,090 | ||||||||||||||||||||||
Unrealized gains on securities, net of taxes of $234 and reclassification adjustment | — | — | — | 666 | — | 666 | ||||||||||||||||||||||
Total comprehensive income: | 6,756 | |||||||||||||||||||||||||||
Dividends | — | — | — | — | (9,211 | ) | (9,211 | ) | ||||||||||||||||||||
Stock options exercised | 60 | 60 | 964 | — | — | 1,024 | ||||||||||||||||||||||
Stock based compensation | — | — | 419 | — | — | 419 | ||||||||||||||||||||||
Balances, August 31, 2005 | 7,369 | 7,369 | 9,183 | 2,195 | 125,439 | 144,186 | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | — | — | — | — | 6,469 | 6,469 | ||||||||||||||||||||||
Unrealized gains on securities, net of taxes of $408 and reclassification adjustment | — | — | — | (2,224 | ) | — | (2,224 | ) | ||||||||||||||||||||
Total comprehensive income: | 4,245 | |||||||||||||||||||||||||||
Dividends | — | — | — | — | (7,556 | ) | (7,556 | ) | ||||||||||||||||||||
Treasury Stock Purchased | (763 | ) | (763 | ) | ||||||||||||||||||||||||
Stock based compensation - - Directors | — | — | 52 | 476 | — | — | 528 | |||||||||||||||||||||
Employee: | ||||||||||||||||||||||||||||
Stock options exercised | 7 | 7 | 127 | — | — | 134 | ||||||||||||||||||||||
Stock based compensation | — | — | 329 | — | — | 329 | ||||||||||||||||||||||
Balances, August 31, 2006 | 7,376 | 7,376 | 9,691 | (287 | ) | (29 | ) | 124,352 | 141,103 | |||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | (13,844 | ) | (13,844 | ) | ||||||||||||||||||||
Unrealized gains on securities, net of taxes of $39 and reclassification adjustment | — | — | — | 74 | — | 74 | ||||||||||||||||||||||
Total comprehensive loss: | (13,770 | ) | ||||||||||||||||||||||||||
Dividends | — | — | — | — | (8,106 | ) | (8,106 | ) | ||||||||||||||||||||
Treasury Stock Purchased | (1,484 | ) | (1,484 | ) | ||||||||||||||||||||||||
Stock based compensation - - Directors | 37 | 478 | 515 | |||||||||||||||||||||||||
Employee: | ||||||||||||||||||||||||||||
Stock options exercised | — | — | (39 | ) | 55 | — | — | 16 | ||||||||||||||||||||
Stock based compensation | — | — | 480 | 192 | — | — | 672 | |||||||||||||||||||||
Balances, August 31, 2007 | 7,376 | $ | 7,376 | $ | 10,169 | (1,046 | ) | $ | 45 | $ | 102,402 | $ | 118,946 | |||||||||||||||
2007 | 2006 | 2005 | ||||||||||
Disclosure of reclassification amount: | ||||||||||||
Unrealized holding (losses) gains arising during the period | 62 | (29 | ) | 1,064 | ||||||||
Less: reclassification adjustment for realized gain (loss) included in net income | (12 | ) | 2,195 | 398 | ||||||||
Net unrealized (losses) gains on securities | 74 | (2,224 | ) | 666 | ||||||||
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(in thousands)
Years Ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Increase (Decrease) in Cash and Cash equivalents: | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | (13,844 | ) | $ | 6,469 | $ | 6,090 | |||||
Adjustments to reconcile net income (loss) to cash (used for) provided by operating activities: | ||||||||||||
Depreciation & amortization | 8,770 | 8,590 | 6,957 | |||||||||
Gain on breeding herd sales | (529 | ) | (162 | ) | (209 | ) | ||||||
Deferred income tax expense, net | (21,351 | ) | 680 | 3,209 | ||||||||
Deferred retirement benefits | (1,026 | ) | 556 | (88 | ) | |||||||
Net gain on sale of marketable securities | (31 | ) | (3,254 | ) | (2,083 | ) | ||||||
Loss on sale of property and equipment | (20 | ) | 861 | 5,539 | ||||||||
Impairment write down | 2,028 | — | — | |||||||||
Loss from non consolidated joint venture | 57 | — | — | |||||||||
Gain on real estate sales | (1,257 | ) | (4,369 | ) | (5,465 | ) | ||||||
Stock based compensation | 1,187 | 857 | 419 | |||||||||
Imputed interest on mortgage note receivable | — | (2,891 | ) | — | ||||||||
Cash provided by (used for) changes in: | ||||||||||||
Accounts receivable | (7,059 | ) | 2,537 | (2,098 | ) | |||||||
Inventories | (669 | ) | (4,159 | ) | (692 | ) | ||||||
Other assets | (163 | ) | (1,585 | ) | (765 | ) | ||||||
Accounts payable & accrued expenses | (756 | ) | 719 | 2,981 | ||||||||
Income taxes payable | 2,031 | 1,304 | (1,741 | ) | ||||||||
Other non-current liability | (20,293 | ) | 3,339 | — | ||||||||
Net cash provided by (used for) operating activities | (52,925 | ) | 9,492 | 12,054 | ||||||||
Cash flows from investing activities: | ||||||||||||
Increase in land inventories | — | (793 | ) | (498 | ) | |||||||
Real Estate deposits and accrued commissions | 1,622 | 6,811 | (11,106 | ) | ||||||||
Purchases of property and equipment | (9,138 | ) | (33,172 | ) | (12,877 | ) | ||||||
Purchase of other investments | (878 | ) | — | — | ||||||||
Proceeds from disposals of property and equipment | 1,652 | 1,092 | 1,762 | |||||||||
Proceeds from sale of real estate | — | 5,555 | 7,507 | |||||||||
Purchases of marketable securities and investments | (54,882 | ) | (92,583 | ) | (28,351 | ) | ||||||
Proceeds from sales of marketable securities | 58,823 | 109,992 | 16,897 | |||||||||
Collection of mortgages and notes receivable | 2,173 | 632 | 10,279 | |||||||||
Net cash used for investing activities | $ | (628 | ) | $ | (2,466 | ) | $ | (16,387 | ) | |||
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(in thousands)
Years Ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuing stock | $ | 16 | $ | 134 | $ | 1,024 | ||||||
Treasury stock purchases | (1,484 | ) | (763 | ) | — | |||||||
Proceeds from bank loans | 95,959 | 65,814 | 26,933 | |||||||||
Repayment of bank loans | (23,072 | ) | (53,160 | ) | (27,170 | ) | ||||||
Dividends paid | (8,106 | ) | (7,370 | ) | (7,369 | ) | ||||||
Net cash provided by (used for) financing activities | 63,313 | 4,655 | (6,582 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 9,760 | 11,681 | (10,915 | ) | ||||||||
Cash and cash equivalents: | ||||||||||||
At beginning of year | 25,065 | 13,384 | 24,299 | |||||||||
At end of year | $ | 34,825 | $ | 25,065 | $ | 13,384 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest, net of amount capitalized | $ | 5,077 | $ | 3,576 | $ | 2,074 | ||||||
Cash paid for income taxes, including related interest | $ | 72,818 | $ | 1,803 | $ | 1,600 | ||||||
Non-cash investing activities: | ||||||||||||
Fair value adjustments to securities available for sale | $ | 113 | $ | (45 | ) | $ | 1,074 | |||||
Income tax effect related to fair value adjustments | $ | 39 | $ | (16 | ) | $ | 408 | |||||
Reclassification of breeding herd to Property & Equipment | $ | 594 | $ | 516 | $ | 562 | ||||||
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Years Ended August 31, 2007, 2006 and 2005
(in thousands except for unit data)
41
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43
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Accounts receivable | Revenues | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2007 | 2006 | 2005 | |||||||||||||||||||
Citrus: | ||||||||||||||||||||||||
Griffin | $ | 4,765 | $ | 4,435 | $ | 5,811 | $ | 14,748 | $ | 17,203 | $ | 19,810 | ||||||||||||
Tropicana | — | — | 116 | 18,342 | 9,656 | 3,720 | ||||||||||||||||||
Southern Gardens | 4,294 | 83 | — | 19,517 | 2,133 | — | ||||||||||||||||||
Sugar cane: | ||||||||||||||||||||||||
USSC | $ | 1,872 | $ | 1,740 | $ | 2,466 | $ | 9,432 | $ | 8,926 | $ | 9,323 |
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2007 | 2006 | |||||||||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | |||||||||||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | |||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | |||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||
Municipal bonds | $ | 28,881 | $ | 6 | $ | (10 | ) | $ | 28,877 | $ | 21,169 | $ | 19 | $ | (2 | ) | $ | 21,186 | ||||||||||||||
Mutual funds | 2,000 | — | — | 2,000 | 370 | — | (6 | ) | 364 | |||||||||||||||||||||||
Fixed maturity funds | 12,656 | 55 | (4 | ) | 12,707 | 19,686 | 44 | (18 | ) | 19,712 | ||||||||||||||||||||||
Corporate bonds | 2,673 | 1 | (16 | ) | 2,658 | 8,920 | — | (82 | ) | 8,838 | ||||||||||||||||||||||
Total debt securities | 46,210 | 62 | (30 | ) | 46,242 | 50,145 | 63 | (108 | ) | 50,100 | ||||||||||||||||||||||
Marketable securities available for sale | $ | 46,210 | $ | 62 | $ | (30 | ) | $ | 46,242 | $ | 50,145 | $ | 63 | $ | (108 | ) | $ | 50,100 | ||||||||||||||
Aggregate | ||||
Fair Value | ||||
Due in one year or less | $ | 30,341 | ||
Due between one and five years | 6,420 | |||
Due between five and ten years | 1,500 | |||
Due thereafter | 5,981 | |||
Total | $ | 44,242 | ||
Year ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Realized gains | $ | 71 | $ | 4,962 | $ | 2,606 | ||||||
Realized losses | (40 | ) | (1,708 | ) | (523 | ) | ||||||
Net | $ | 31 | $ | 3,254 | $ | 2,083 | ||||||
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Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Municipal bonds | $ | 14,336 | $ | 10 | $ | — | $ | — | $ | 14,336 | $ | 10 | ||||||||||||
Fixed maturity funds | 3,075 | 4 | — | — | 3,075 | 4 | ||||||||||||||||||
Corporate bonds | — | 2,658 | 16 | 2,658 | 16 | |||||||||||||||||||
Total | $ | 17,411 | $ | 14 | $ | 2,658 | $ | 16 | $ | 20,069 | $ | 30 | ||||||||||||
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August 31, | ||||||||
2007 | 2006 | |||||||
Mortgage notes receivable on retail land sales | $ | 311 | $ | 427 | ||||
Mortgage notes receivable on bulk land sales | 65,963 | 56,610 | ||||||
Total mortgages and notes receivable | 66,274 | 57,037 | ||||||
Less: Deferred revenue | (53,254 | ) | (43,230 | ) | ||||
Discount on note to impute market interest | (2,594 | ) | (2,783 | ) | ||||
Current portion | (487 | ) | (47 | ) | ||||
Non-current portion | $ | 9,939 | $ | 10,977 | ||||
Due within 1 year | $ | 487 | ||
Due between 1 and 2 years | 3,550 | |||
Due between 2 and 3 years | 12,046 | |||
Due between 3 and 4 years | 14,896 | |||
Due between 4 and 5 years | 29,496 | |||
Due beyond five years | 5,799 | |||
Total mortgages and notes receivable | 66,274 | |||
Less: Deferred Revenue | (53,254 | ) | ||
Discount on note to impute market interest | (2,594 | ) | ||
Net mortgages and notes receivable | $ | 10,426 | ||
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2007 | 2006 | |||||||
Unharvested fruit crop on trees | $ | 12,177 | $ | 10,709 | ||||
Unharvested sugarcane | 4,922 | 5,168 | ||||||
Beef cattle | 5,429 | 7,063 | ||||||
Plants and vegetables | 1,086 | 588 | ||||||
Sod | 1,449 | 1,017 | ||||||
Other | 151 | — | ||||||
Total inventories | $ | 25,214 | $ | 24,545 | ||||
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2007 | 2006 | 2005 | ||||||||||
Unharvested citrus | $ | — | $ | 3,198 | $ | 786 | ||||||
Unharvested sugarcane | — | 395 | — | |||||||||
Unharvested vegetables | — | 147 | — | |||||||||
$ | — | $ | 3,740 | $ | 786 | |||||||
Estimated | ||||||||||||
2007 | 2006 | Useful Lives | ||||||||||
Breeding herd | $ | 13,643 | $ | 15,038 | 5-7 years | |||||||
Buildings | 9,948 | 8,434 | 5-40 years | |||||||||
Citrus trees | 31,466 | 31,466 | 22-40 years | |||||||||
Sugarcane | 5,508 | 8,382 | 4-15 years | |||||||||
Equipment and other facilities | 37,908 | 35,130 | 3-40 years | |||||||||
Total depreciable properties | 98,473 | 98,450 | ||||||||||
Less accumulated depreciation | 49,927 | 48,338 | ||||||||||
Net depreciable properties | 48,546 | 50,112 | ||||||||||
Land and land improvements | 80,444 | 81,239 | ||||||||||
Net property, buildings and equipment | $ | 128,990 | $ | 131,351 | ||||||||
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52
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Additional | ||||||||||||||||
Principal | Credit | Interest | ||||||||||||||
August 31, 2007 | Balance | Available | Rate (f) | Collateral | ||||||||||||
a) Revolving Credit Facility | $ | 128,419 | $ | 46,581 | LIBOR +1.50% | Real estate | ||||||||||
c) Mortgage note payable | 8,339 | — | 6.68 | % | Real estate | |||||||||||
d) Mortgage note payable | 52 | — | 7.00 | % | Real estate | |||||||||||
e) Vehicle financing | 79 | — | 0%-2.90 | % | 3 Vehicles | |||||||||||
Total | $ | 136,889 | $ | 46,581 | ||||||||||||
Additional | ||||||||||||||||
Principal | Credit | Interest | ||||||||||||||
August 31, 2006 | Balance | Available | Rate (f) | Collateral | ||||||||||||
a) Revolving Credit Facility | $ | 52,296 | 122,704 | LIBOR +1% | Real estate | |||||||||||
b) Term loan | 2,000 | — | 5.80 | % | Unsecured | |||||||||||
c) Mortgage note payable | 9,606 | — | 6.68 | % | Real estate | |||||||||||
d) Mortgage note payable | 100 | — | 7.00 | % | Real estate | |||||||||||
Total | $ | 64,002 | $ | 122,704 | ||||||||||||
a) | Terms described above. | |
b) | 5-year fixed rate term loan with commercial lender. $2 million principal due annually. Interest due quarterly. The note was paid in full during the second quarter of fiscal year 2007. | |
c) | First mortgage on 7,680 acres of cane, citrus, pasture and improvements in Hendry County, Florida with commercial lender. Monthly principal payments of $106 thousand plus accrued interest. | |
d) | First mortgage on a parcel of land in Polk County, Florida with private seller. Annual equal payments of $55 thousand. | |
e) | 3-5 year term loans. Monthly principal payments plus interest. | |
f) | The LIBOR rate was 5.38% at August 31, 2007 and 5.33% at August 31, 2006. The Company’s variable interest rates, based on LIBOR at August 31, 2007 and 2006 were approximately 6.88% and 6.33% respectively. |
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August 31, | ||||
2007 | ||||
Due within 1 year | $ | 1,350 | ||
Due between 1 and 2 years | 1,298 | |||
Due between 2 and 3 years | 129,695 | |||
Due between 3 and 4 years | 1,273 | |||
Due between 4 and 5 years | 1,269 | |||
Due beyond five years | 2,004 | |||
Total | $ | 136,889 | ||
2007 | 2006 | 2005 | ||||||||||
Interest expense | $ | 5,742 | $ | 4,066 | $ | 2,295 | ||||||
Interest capitalized | 43 | 77 | 235 | |||||||||
Total interest cost | $ | 5,785 | $ | 4,143 | $ | 2,530 | ||||||
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Weighted average | Aggregate | |||||||||||||||
Shares Under | Weighted average | remaining contractual | Intrinsic | |||||||||||||
Option | exercise price | life (in years) | Value | |||||||||||||
Options outstanding, August 31, 2004 | 75,626 | $ | 17.29 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | 59,255 | 17.08 | ||||||||||||||
Options outstanding, August 31, 2005 | 16,371 | $ | 18.05 | |||||||||||||
Granted | — | |||||||||||||||
Exercised | 7,213 | 18.55 | ||||||||||||||
Options outstanding, August 31, 2006 | 9,158 | $ | 17.66 | |||||||||||||
Granted | — | |||||||||||||||
Exercised | 1,000 | 15.68 | ||||||||||||||
Options outstanding, August 31, 2007 | 8,158 | $ | 17.90 | 6 | 271,254 | |||||||||||
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Weighted | ||||||||||||||||||||
Average | ||||||||||||||||||||
Compensation | Compensation | Grant date | ||||||||||||||||||
Fair Market Value | Expense | Expense | Fair value | |||||||||||||||||
Grant Date | Shares Granted | on Date of Grant | Recognized in 2007 | Recognized in 2006 | Per share | |||||||||||||||
April 2006 | 20,000 | $ | 908 | $ | 172 | 65 | ||||||||||||||
July 2006 | 13,000 | 694 | (16 | ) | 16 | |||||||||||||||
October 2006 | 20,000 | 1,239 | 517 | 248 | ||||||||||||||||
Total | 53,000 | $ | 2,841 | $ | 673 | $ | 329 | $ | 53.60 | |||||||||||
Year ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Current: | ||||||||||||
Federal income tax | $ | 46,097 | $ | 2,640 | $ | 1,121 | ||||||
State income tax | 8,507 | 282 | 120 | |||||||||
54,604 | 2,922 | 1,241 | ||||||||||
Deferred: | ||||||||||||
Federal income tax | (18,578 | ) | 2,975 | 1,725 | ||||||||
State income tax | (2,780 | ) | 318 | 182 | ||||||||
(21,358 | ) | 3,293 | 1,907 | |||||||||
Total provision for income taxes | $ | 33,246 | $ | 6,215 | $ | 3,148 | ||||||
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Year ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Expected income tax | $ | 6,791 | $ | 4,313 | $ | 3,141 | ||||||
Increase (decrease) resulting from: | ||||||||||||
State income taxes, net of federal benefit | 3,723 | 396 | 198 | |||||||||
Nontaxable interest and dividends | (708 | ) | (352 | ) | (89 | ) | ||||||
Federal and state impacts from IRS exam | 22,272 | 2,204 | — | |||||||||
Deferred rate adjustment | 397 | — | — | |||||||||
Other reconciling items, net | 771 | (346 | ) | (102 | ) | |||||||
Total provision for income taxes | $ | 33,246 | $ | 6,215 | $ | 3,148 | ||||||
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2007 | 2006 | |||||||
Deferred Tax Assets: | ||||||||
Contribution carry forward | $ | 1,082 | $ | 1,052 | ||||
Deferred retirement benefits | 2,095 | 1,299 | ||||||
Federal benefit of state tax reserve | 2,229 | — | ||||||
Prepaid sales commissions | — | 412 | ||||||
Land inventories | — | 488 | ||||||
Stock options appreciation | 239 | 278 | ||||||
Land basis step up | 21,820 | 802 | ||||||
Interest on taxes accrued for State amended returns | 1,413 | 1,257 | ||||||
Other | 1,040 | 662 | ||||||
Total gross deferred tax assets | $ | 29,918 | $ | 6,250 | ||||
Deferred Tax Liabilities: | ||||||||
Revenue recognized from citrus and sugarcane | $ | 1,739 | $ | 471 | ||||
Property and equipment (principally due to depreciation and soil and water deductions) | 19,730 | 15,743 | ||||||
Inventories | 476 | 322 | ||||||
Deferred real estate gains | — | 4,792 | ||||||
Other | 1,717 | 11 | ||||||
Total gross deferred tax liabilities | $ | 23,662 | $ | 21,339 | ||||
Net deferred income tax (benefit) liabilities | $ | (6,256 | ) | $ | 15,089 | |||
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Year ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenues (from external customers except as noted) | ||||||||||||
Bowen | $ | 52,716 | $ | 30,869 | $ | — | ||||||
Intersegment fruit sales through Bowen | 5,383 | 1,723 | — | |||||||||
Citrus groves | 47,484 | 22,188 | 26,231 | |||||||||
Sugarcane | 9,432 | 8,926 | 9,323 | |||||||||
Cattle | 9,977 | 5,700 | 11,017 | |||||||||
Real Estate | 3,329 | 113 | 810 | |||||||||
Alico Plant World | 2,832 | 3,270 | 2,587 | |||||||||
Vegetables | 3,803 | 2,389 | — | |||||||||
Sod | 2,180 | 1,528 | 402 | |||||||||
Revenue from segments | 137,136 | 76,706 | 50,370 | |||||||||
Other operations | 3,084 | 2,451 | 5,155 | |||||||||
Less: intersegment revenues eliminated | (5,383 | ) | (1,723 | ) | — | |||||||
Total operating revenue | $ | 134,837 | $ | 77,434 | $ | 55,525 | ||||||
Operating expenses | ||||||||||||
Bowen | $ | 51,786 | $ | 31,137 | $ | — | ||||||
Intersegment fruit sold through Bowen | 5,383 | 1,723 | — | |||||||||
Citrus groves | 23,427 | 14,574 | 19,984 | |||||||||
Sugarcane | 8,833 | 8,566 | 8,824 | |||||||||
Cattle | 9,722 | 4,914 | 8,908 | |||||||||
Real Estate | 3,408 | 61 | 328 | |||||||||
Alico Plant World | 2,815 | 4,373 | 2,128 | |||||||||
Vegetables | 3,307 | 1,404 | — | |||||||||
Sod | 1,318 | 840 | 480 | |||||||||
Segment operating expenses | 109,999 | 67,592 | 40,652 | |||||||||
Other operations | 519 | 452 | 639 | |||||||||
Less: intersegment expenses eliminated | (5,383 | ) | (1,723 | ) | — | |||||||
Net casualty loss (recovery) | — | (3,628 | ) | 1,888 | ||||||||
Total operating expenses | $ | 105,135 | $ | 62,693 | $ | 43,179 | ||||||
Gross profit (loss): | ||||||||||||
Bowen Brothers Fruit | $ | 930 | $ | (268 | ) | $ | — | |||||
Citrus groves | 24,057 | 7,614 | 6,247 | |||||||||
Sugarcane | 599 | 360 | 499 | |||||||||
Cattle | 255 | 786 | 2,109 | |||||||||
Real Estate | (79 | ) | 52 | 482 | ||||||||
Alico Plant World | 17 | (1,103 | ) | 459 | ||||||||
Vegetables | 496 | 985 | — | |||||||||
Sod | 862 | 688 | (78 | ) | ||||||||
Gross profit from segments | 27,137 | 9,114 | 9,718 | |||||||||
Other | (7,735 | ) | 3,570 | (480 | ) | |||||||
Income before income taxes | $ | 19,402 | $ | 12,684 | $ | 9,238 | ||||||
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Year ended August 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Capital expenditures: | ||||||||||||
Bowen Brothers Fruit | $ | 554 | $ | 1,536 | $ | — | ||||||
Citrus Groves | 1,231 | 9,929 | 2,086 | |||||||||
Sugarcane | 1,288 | 3,065 | 1,891 | |||||||||
Cattle | 1,893 | 3,490 | 2,711 | |||||||||
Alico Plant World | 321 | 957 | 5,990 | |||||||||
Vegetables | 473 | 325 | — | |||||||||
Sod | 908 | 1,103 | — | |||||||||
Segment capital expenditures | 6,668 | 20,405 | 12,678 | |||||||||
Other capital expenditures | 2,470 | 12,767 | 199 | |||||||||
Total consolidated capital expenditures | $ | 9,138 | $ | 33,172 | $ | 12,877 | ||||||
Depreciation, depletion and amortization: | ||||||||||||
Bowen Brothers Fruit | $ | 344 | $ | 913 | $ | — | ||||||
Citrus Groves | 2,381 | 2,540 | 2,454 | |||||||||
Sugarcane | 2,083 | 1,918 | 2,072 | |||||||||
Cattle | 1,887 | 1,817 | 1,484 | |||||||||
Alico Plant World | 640 | 578 | 431 | |||||||||
Vegetables | 68 | 17 | — | |||||||||
Sod | 220 | 143 | — | |||||||||
Total segment depreciation and amortization | 7,623 | 7,926 | 6,441 | |||||||||
Other depreciation, depletion and amortization | 1,147 | 664 | 516 | |||||||||
Total depreciation, depletion and amortizations | $ | 8,770 | $ | 8,590 | $ | 6,957 | ||||||
Total Assets: | ||||||||||||
Bowen Brothers Fruit | $ | 3,042 | $ | 3,096 | ||||||||
Citrus groves | 54,558 | 59,464 | ||||||||||
Sugarcane | 46,053 | 47,894 | ||||||||||
Cattle | 20,813 | 23,919 | ||||||||||
Alico Plant World | 6,711 | 6,515 | ||||||||||
Vegetables | 2,766 | 1,981 | ||||||||||
Sod | 5,362 | 4,191 | ||||||||||
Segment assets | 139,305 | 147,060 | ||||||||||
Other Corporate assets | 141,582 | 115,693 | ||||||||||
Total assets | $ | 280,887 | $ | 262,753 | ||||||||
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2007 | 2006 | 2005 | ||||||||||
Inventoried costs | $ | — | $ | 3,740 | $ | 786 | ||||||
Basis of property and equipment | — | 1,410 | 4,426 | |||||||||
Re-established groves | — | (1,268 | ) | — | ||||||||
Payments for business interruption | — | (2,900 | ) | — | ||||||||
Insurance proceeds received | — | (4,004 | ) | (1,062 | ) | |||||||
Insurance reimbursements receivable | — | (606 | ) | (2,262 | ) | |||||||
Net casualty (recovery) loss | $ | — | $ | (3,628 | ) | $ | 1,888 | |||||
Total Shares | ||||||||||||||||
Purchased as Part of | ||||||||||||||||
Total Number of | Average price | Publicly Announced | Total Dollar value of | |||||||||||||
Date | Shares Purchased | paid per share | Plans or Programs(1) | shares purchased | ||||||||||||
11/28/2005 | 10,000 | $ | 43.30 | 10,000 | $ | 433,000 | ||||||||||
5/9/2006 | 3,000 | $ | 54.46 | 13,000 | $ | 163,380 | ||||||||||
8/2/2006 | 3,000 | $ | 55.62 | 16,000 | $ | 166,867 | ||||||||||
1/16/2007 | 2,106 | $ | 47.93 | 18,106 | $ | 100,931 | ||||||||||
1/17/2007 | 5,628 | $ | 48.30 | 23,734 | $ | 271,836 | ||||||||||
1/19/2007 | 2,193 | $ | 50.54 | 25,927 | $ | 110,830 | ||||||||||
3/8/2007 | 843 | $ | 47.69 | 26,770 | $ | 40,199 | ||||||||||
5/7/2007 | 10,000 | $ | 59.67 | 36,770 | $ | 596,654 | ||||||||||
8/20/2007 | 7,000 | $ | 51.98 | 43,770 | $ | 363,841 |
1) | The Company may purchase an additional 87,230 shares pursuant to the approved repurchase agreement. |
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(UNAUDITED)
Quarters Ended | ||||||||||||||||||||||||||||||||
November 30, | February 28, | May 31, | August 31, | |||||||||||||||||||||||||||||
2006 | 2005 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | |||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Bowen | 804 | — | 19,943 | 5,722 | 31,017 | 16,290 | 952 | 8,857 | ||||||||||||||||||||||||
Citrus | 1,637 | 1,208 | 20,265 | 7,044 | 21,772 | 11,986 | 3,810 | 1,950 | ||||||||||||||||||||||||
Sugarcane | 1,696 | 1,428 | 5,478 | 4,992 | 2,040 | 2,507 | 218 | (1 | ) | |||||||||||||||||||||||
Cattle | 4,074 | 2,224 | 909 | 426 | 3,842 | 758 | 1,152 | 2,292 | ||||||||||||||||||||||||
Vegetables, plants & trees | 999 | 521 | 2,850 | 2,515 | 2,176 | 2,262 | 859 | 503 | ||||||||||||||||||||||||
Sod | 399 | 558 | 531 | 152 | 647 | 285 | 603 | 533 | ||||||||||||||||||||||||
Real estate | — | 5,580 | 4,175 | 7 | (15 | ) | 81 | 603 | 206 | |||||||||||||||||||||||
Interest | 1,397 | 4,985 | 1,973 | 1,499 | 2,120 | 1,651 | 1,971 | 918 | ||||||||||||||||||||||||
Other revenue | 881 | 787 | 837 | 682 | 690 | 605 | 625 | 581 | ||||||||||||||||||||||||
Total revenue | 11,887 | 17,291 | 56,961 | 23,039 | 64,289 | 36,425 | 10,793 | 15,839 | ||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||
Bowen | 1,049 | — | 18,695 | 5,720 | 30,922 | 16,479 | 1,120 | 8,938 | ||||||||||||||||||||||||
Citrus | 918 | 588 | 10,772 | 5,241 | 10,489 | 7,407 | 1,248 | 1,338 | ||||||||||||||||||||||||
Sugarcane | 2,140 | 2,174 | 4,921 | 4,763 | 1,747 | 1,738 | 25 | (109 | ) | |||||||||||||||||||||||
Cattle | 3,596 | 1,711 | 850 | 318 | 3,672 | 671 | 1,604 | 2,214 | ||||||||||||||||||||||||
Vegetables, plants & trees | 1,156 | 875 | 2,120 | 2,122 | 2,232 | 2,162 | 614 | 618 | ||||||||||||||||||||||||
Sod | 242 | 449 | 246 | 75 | 201 | 128 | 629 | 188 | ||||||||||||||||||||||||
Real estate | 220 | 1,171 | 1,064 | 5 | (23 | ) | 42 | 2,324 | 235 | |||||||||||||||||||||||
Interest | 1,183 | 991 | 1,302 | 793 | 1,321 | 1,055 | 1,936 | 1,227 | ||||||||||||||||||||||||
Other | 3,237 | 7,533 | 3,347 | (318 | ) | 3,592 | 3,111 | 3,817 | (1,743 | ) | ||||||||||||||||||||||
Total costs and expenses | 13,741 | 15,492 | 43,317 | 18,719 | 54,153 | 32,793 | 13,317 | 12,906 | ||||||||||||||||||||||||
Income (loss) before income taxes | (1,854 | ) | 1,799 | 13,644 | 4,320 | 10,136 | 3,632 | (2,524 | ) | 2,933 | ||||||||||||||||||||||
Provision for income taxes | (883 | ) | 646 | 5,940 | 1,653 | 23,285 | 1,092 | 4,904 | 2,824 | |||||||||||||||||||||||
Net income (loss) | (971 | ) | 1,153 | 7,704 | 2,667 | (13,149 | ) | 2,540 | (7,428 | ) | 109 | |||||||||||||||||||||
Basic earnings (loss) per share | $ | (0.13 | ) | $ | 0.16 | $ | 1.05 | $ | 0.36 | $ | (1.78 | ) | $ | 0.34 | $ | (1.02 | ) | $ | 0.02 | |||||||||||||
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Report of Independent Registered Certified Public Accounting Firm
To the Board of Directors and Stockholders
Alico, Inc.
LaBelle, Florida
We have audited management’s assessment, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting, that Alico, Inc. and Subsidiaries maintained effective internal control over financial reporting as of August 31, 2007, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Alico, Inc.’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on management’s assessment and an opinion on the effectiveness of the Company’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, management’s assessment that Alico, Inc. and Subsidiaries maintained effective internal control over financial reporting as of August 31, 2007, is fairly stated, in all material respects, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Also, in our opinion, Alico, Inc. and Subsidiaries maintained, in all material respects, effective internal control over financial reporting as of August 31, 2007, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
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We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements of Alico, Inc. and Subsidiaries as of and for the year ended August 31, 2007, and our report dated November 14, 2007 expressed an unqualified opinion.
/s/MCGLADREY & PULLEN, LLP
Orlando, Florida
November 14, 2007
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(Registrant)
November 14, 2007 | John R. Alexander | |
Date | Chairman, President & | |
Chief Executive Officer | ||
/s/ John R. Alexander | ||
November 14, 2007 | Patrick W. Murphy | |
Date | Senior Vice President and | |
Chief Financial Officer | ||
/s/ Patrick W. Murphy |
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John R. Alexander | Robert E. Lee Caswell | |
Chairman | Director | |
/s/ John R. Alexander | /s/ Robert E. Lee Caswell | |
Evelyn D’An | Phillip Dingle | |
Director | Director | |
/s/ Evelyn D’An | /s/ Phillip Dingle | |
Gregory Mutz | Charles Palmer | |
Director | Director | |
/s/ Gregory Mutz | /s/ Charles Palmer | |
Baxter G. Troutman | Gordon Walker | |
Director | Director | |
/s/ Baxter G. Troutman | /s/ Gordon Walker | |
Robert J. Viguet | ||
Director | ||
/s/ Robert J. Viguet | ||
November 14, 2007 | ||
Date |
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