UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
__X__ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For six months ended February 28, 1999.
OR
_____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________________ to _______________________.
Commission file number 0-261.
ALICO, INC.
(Exact name of registrant as specified in its charter)
Florida 59-0906081
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification No.)
P. O. Box 338, La Belle, FL 33975
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 941/675-2966
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
There were 7,027,827 shares of common stock, par value $1.00 per share,
outstanding at April 13, 1999.
<PAGE>
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(See Accountants' Review Report)
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
Feb. 28, 1999 Feb. 28, 1998 Feb. 28, 1999 Feb. 28, 1998
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
Revenue:
Citrus $ 8,535,053 $ 8,372,605 $10,121,651 $12,187,463
Sugarcane 2,221,271 2,796,753 3,414,804 4,496,443
Ranch 1,060,374 1,143,736 3,707,730 4,243,414
Rock products and sand 279,816 263,586 631,990 575,668
Oil lease and land
rentals 285,024 104,113 419,473 264,009
Forest products 12,452 37,622 66,700 82,113
Profit on sales of real
estate 4,293,376 5,712 4,293,376 633,372
Interest and investment
income 240,439 324,505 436,291 620,037
Other 16,392 28,076 27,938 42,675
___________ ___________ ___________ ___________
Total revenue 16,944,197 13,076,708 23,119,953 23,145,194
___________ ___________ ___________ ___________
Cost and expenses:
Citrus production,
harvesting and
marketing 6,306,360 6,557,629 7,581,598 10,000,637
Sugarcane production
and harvesting 1,705,466 2,240,340 2,581,388 3,715,636
Ranch 1,000,815 1,014,643 3,787,843 3,833,030
Real estate expenses 18,649 110,794 149,761 214,419
Interest 397,677 208,335 806,614 378,330
Other, general and
administrative 686,625 670,050 1,375,612 1,258,098
___________ ___________ ___________ ___________
Total costs and
expenses 10,115,592 10,801,791 16,282,816 19,400,150
___________ ___________ ___________ ___________
Income before income taxes 6,828,605 2,274,917 6,837,137 3,745,044
Provision for income taxes 3,127,489 824,679 3,108,927 1,347,468
___________ ___________ ___________ ___________
Net income 3,701,116 1,450,238 3,728,210 2,397,576
___________ ___________ ___________ ___________
Other comprehensive income,
net of tax:
Unrealized gains on
securities 31,620 224,862 565,629 358,265
___________ ___________ ___________ ___________
Comprehensive income 3,732,736 1,675,100 4,293,839 2,755,841
___________ ___________ ___________ ___________
___________ ___________ ___________ ___________
Weighted average number of shares
outstanding 7,027,827 7,027,827 7,027,827 7,027,827
Per share amounts:
Net income $ .53 $ .21 $ .53 $ .34
Dividends $ - $ - $ .50 $ .60
<FN>
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
(Unaudited)
February 28, 1999 August 31, 1998
ASSETS
<S> <C> <C>
Current assets:
Cash and cash investments $ 530,700 $ 908,268
Marketable Securities 13,753,558 12,291,767
Accounts and mortgage notes receivable 9,161,000 11,193,508
Inventories 16,646,791 17,625,923
Other current assets 501,734 334,577
____________ ____________
Total current assets 40,593,783 42,354,043
Mortgage notes receivable, non-current 439,234 514,796
Land held for development and sale 9,128,860 8,837,957
Other assets 988,118 965,230
Property, buildings and equipment 110,690,755 107,064,751
Less: Accumulated depreciation (29,803,315) (29,182,416)
____________ ____________
Total assets $132,037,435 $130,554,361
____________ ____________
____________ ____________
<PAGE>
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
(Continued)
(Unaudited)
<S> February 28, 1999 August 31, 1998
LIABILITIES _________________ _______________
<C> <C>
Current liabilities:
Accounts payable $ 1,336,372 $ 1,464,159
Due to profit sharing plan - 296,368
Accrued ad valorem taxes 344,470 1,329,136
Current portion of notes payable 55,366 28,145
Accrued expenses 525,667 538,897
Income taxes payable 1,286,801 623,128
Deferred income taxes 247,606 1,023,886
Deferred revenue - 345,763
____________ ____________
Total current liabilities 3,796,282 5,649,482
Notes payable 25,038,502 23,210,723
Deferred income taxes 11,872,815 11,723,895
Deferred retirement benefits 582,970 3,320
____________ ____________
Total liabilities 41,290,569 40,587,420
____________ ____________
STOCKHOLDERS' EQUITY
Common stock $ 7,027,827 $ 7,027,827
Accumulated other comprehensive income 733,974 168,345
Retained earnings 82,985,065 82,770,769
____________ ____________
Total stockholders' equity 90,746,866 89,966,941
____________ ____________
Total liabilities and
stockholders' equity $132,037,435 $130,554,361
____________ ____________
____________ ____________
<FN>
See Accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(See Accountants' Review Report)
Accumulated
Common Stock Other
Shares Retained Comprehensive
Issued Amount Earnings Income
____________________________________________________
Balances August 31, 1997 7,027,827 $7,027,827 $80,211,659 $913,059
Net income for the year
ended August 31, 1997 - - 6,775,806 -
Other comprehensive income,
net of tax - - - (744,714)
Dividends paid - - (4,216,696) -
____________________________________________________
Balances August 31, 1998 7,027,827 7,027,827 82,770,769 168,345
Net income for the
six months ended
February 28, 1999 - - 3,728,210 -
Other comprehensive
income, net of tax - - - 565,629
Dividends paid - - (3,513,914) -
____________________________________________________
Balances February 28, 1999 7,027,827 $7,027,827 $82,985,065 $733,974
____________________________________________________
____________________________________________________
See accompanying notes to condensed consolidated financial statement.
<TABLE>
<CAPTION>
ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(See Accountants' Review Report)
(Unaudited)
Feb. 28, 1999 Feb. 28, 1998
_____________ _____________
<S>
Cash flows from operating activities:
<C> <C>
Net income $ 3,728,210 $ 2,397,576
Adjustments to reconcile net income to cash
provided from operating activities:
Depreciation 2,411,785 2,272,562
Net decrease in current assets and
liabilities 1,055,830 211,026
Deferred income taxes (968,626) (170,710)
Gain on sale of real estate (4,268,132) (616,268)
Other 389,952 (603,317)
___________ ___________
Net cash provided from
operating activities 2,349,019 3,490,869
___________ ___________
Cash flows from investing activities:
Purchases of property and equipment (4,998,455) (2,411,878)
Proceeds from sales of real estate 4,404,902 650,000
Proceeds from sales of other property
and equipment - 250,852
Purchases of marketable securities (1,986,946) (2,537,697)
Proceeds from sales of marketable securities 1,428,472 1,788,792
___________ ___________
Net cash used for
investing activities (1,152,027) (2,259,931)
___________ ___________
Cash flows from financing activities:
Notes receivable collections 84,354 21,272
Repayment of bank loan (16,747,000) (11,225,000)
Proceeds from bank loan 18,602,000 13,625,000
Dividends paid (3,513,914) (4,216,696)
___________ ___________
Net cash used for
financing activities (1,574,560) (1,795,424)
___________ ___________
Net decrease in cash and
cash investments $ (377,568) $ (564,486)
___________ ___________
___________ ___________
Supplemental disclosures of cash flow information:
Cash paid for interest, net of
amount capitalized $ 776,717 $ 362,251
___________ ___________
___________ ___________
Cash paid for income taxes, including $ 3,403,372 $ 1,612,600
interest and penalties ___________ ___________
___________ ___________
<FN>
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
ALICO, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(See Accountants' Review Report)
1. Basis of financial statement presentation:
The accompanying condensed consolidated financial statements include the
accounts of the Company and its wholly owned subsidiary, Saddlebag Lake
Resorts, Inc., after elimination of all significant intercompany balances
and transactions.
The accompanying unaudited condensed consolidated financial statements have
been prepared on a basis consistent with the accounting principles and
policies reflected in the Company's annual report for the year ended August
31, 1998. In the opinion of Management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (consisting only
of normal recurring accruals) necessary for a fair presentation of its
consolidated financial position and stockholders' equity at February 28, 1999
and August 31, 1998 and the consolidated results of operations and cash flows
for the six months ended February 28, 1999 and 1998.
The basic business of the Company is agriculture which is of a seasonal nature
and subject to the influence of natural phenomena and wide price fluctuations.
Fluctuation in the market prices for citrus fruit caused the Company to
recognize additional revenue from the prior year's crop totaling
approximately $219,000 in 1999 and $2,536,000 in 1998. The results of
operations for the stated periods are not necessarily indicative of results
to be expected for the full year.
2. Real estate:
Real estate sales are recorded under the accrual method of accounting. Under
this method, a sale is not recognized until payment is received, including
interest, aggregating 10% of the contract sales price for residential
properties and 20% for commercial properties.
3. Inventories:
A summary of the Company's inventories (in thousands) is shown below:
February 28, August 31,
1999 1998
____________ __________
Unharvested fruit crop on trees $ 8,007 $ 7,466
Unharvested sugarcane 1,809 2,358
Beef cattle 6,562 7,535
Sod 269 267
_______ _______
Total inventories $16,647 $17,626
_______ _______
_______ _______
<PAGE>
<TABLE>
<CAPTION>
4. Income taxes:
The provision for income taxes for the quarters and six months ended February
28, 1999 and 1998 is summarized as follows:
Three Months Ended Six Months Ended
Feb. 28, 1999 Feb. 28, 1998 Feb. 28, 1999 Feb. 28, 1998
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
Current:
Federal income tax $1,948,486 $678,251 $2,048,939 $1,220,936
State income tax 172,997 72,413 190,048 166,936
__________ ________ __________ __________
2,121,483 750,664 2,238,987 1,387,872
__________ ________ __________ __________
Deferred:
Federal income tax 908,948 66,876 786,008 (36,506)
State income tax 97,058 7,139 83,932 (3,898)
__________ ________ __________ __________
1,006,006 74,015 869,940 (40,404)
__________ ________ __________ __________
Total provision for
income taxes $3,127,489 $824,679 $3,108,927 $1,347,468
__________ ________ __________ __________
__________ ________ __________ __________
Following is a reconciliation of the expected income tax expense computed at the
U. S. Federal statutory rate of 34% and the actual income tax provision for the
quarters and six months ended February 28, 1999 and 1998:
Three Months Ended Six Months Ended
Feb. 28, 1999 Feb. 28, 1998 Feb. 28, 1999 Feb. 28, 1998
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
Expected income tax $2,321,726 $773,472 $2,324,627 $1,273,315
Increase (decrease)
resulting from:
State income taxes,
net of federal
benefit 247,878 82,579 248,188 135,945
Nontaxable interest
and dividends (22,411) (25,459) (46,236) (50,973)
Interest and penalties
net of federal and
state benefit 593,878 - 593,878 -
Other reconciling
items, net (13,582) (5,913) (11,530) (10,819)
__________ ________ __________ __________
Total provision
for income
taxes $3,127,489 $824,679 $3,108,927 $1,347,468
__________ ________ __________ __________
__________ ________ __________ __________
<PAGE>
The Company is currently under examination by the Internal Revenue Service for
the years ended August 31, 1993, 1994, 1995 and 1996. Previously the Company
had been under audit for the years ended August 31, 1991 and 1992. A final
settlement was reached in February 1999. The resulting income taxes, related
to the timing of recognition of certain items previously expensed, totaled
$1,037,803.
5. Indebtedness:
The Company has financing agreements with commercial banks that permit the
Company to borrow up to $34 million. The financing agreements allow the
Company to borrow up to $27,000,000 which is due in 2000 and up to $7,000,000
which is due on demand. The total amount of long-term debt under these
agreements at February 28, 1999 and August 31, 1998 was $25,038,502 and
$23,210,723, respectively.
Interest cost expensed and capitalized during the six months ended February 28,
1999 and February 28, 1998 was as follows:
1999 1998
__________ ________
Interest expensed $806,614 $378,330
Interest capitalized 74,190 172,516
________ ________
Total interest cost $880,804 $550,846
________ ________
________ ________
6. Dividends:
On October 6, 1998 the Company declared a year-end dividend of $.50 per
share, which was paid on November 6, 1998.
7. Disclosures about reportable segments:
Alico, Inc. has four reportable segments: citrus, sugarcane, ranching and
general corporate. The commodities produced by these segments are sold to
wholesalers and processors who prepare the products for consumption. The
Company's operations are located in Florida.
The accounting policies of the segments are the same as those described in
the summary of significant accounting policies. Alico, Inc. evaluates
performance based on profit or loss from operations before income taxes.
Alico, Inc.'s reportable segments are strategic business units that offer
different products. They are managed separately because each segment
requires different management techniques, knowledge and skills.
The following table presents information for each of the Company's
operating segments as of and for the six months ended February 28, 1999:
____________________________________________________________
General Consolidated
Citrus Sugarcane Ranch Corporate* Total
____________________________________________________________
Revenue $10,121,651 3,414,804 3,707,730 5,875,768 23,119,953
Costs and
expenses 7,581,598 2,581,388 3,787,843 2,331,987 16,282,816
Depreciation and
amortization 1,067,697 493,811 650,463 199,814 2,411,785
Segment profit
(loss) 3,815,291 1,709,338 2,706,915 (1,394,407) 6,837,137
Segment assets 31,040,599 30,196,983 10,635,445 60,164,408 132,037,435
*Consists of rents, investments, real estate activities and other such
items of a general corporate nature.
8. Accounting pronouncements:
As of September 1, 1998, Alico adopted Statement of Financial Accounting
Standards No. 130 (SFAS 130), "Reporting Comprehensive Income," with
retroactive reporting for previous periods. Statement 130 requires that
an enterprise compute and display comprehensive income and its components
in a full set of general-purpose financial statements. Comprehensive
income is defined as the change in equity of a business enterprise during
a period from transactions and other events and circumstances from nonowner
sources. It includes both net income and other comprehensive income which
caused the equity change.
Items included in other comprehensive income shall be classified based on
their nature. For example, it would include unrealized holding gains and
losses relating to securities transactions, and changes in market values
of futures contracts which qualifies as a hedge among other items. The
total of other comprehensive income for a period will be transferred to an
equity account and displayed as "accumulated other comprehensive income."
9. Stock Incentive Plan:
At its annual meeting of shareholders on December 1, 1998, the stockholders
approved an incentive plan which is intended to provide officers, board members
and other key employees of the Company an opportunity to increase their stock
ownership in the Company and give them additional incentive to achieve the
Company's objectives. There are 650,000 shares of the Company's Common Stock
reserved for awards under the incentive plan. No grants have yet been approved
or distributed under the Plan.
10. Subsequent events:
In March 1999, the Company purchased 7,680 acres in Hendry County, Florida
for $22.5 million. The acquisition included producing citrus and sugarcane
operations. Additionally, the Company mortgaged the property for $19 million.
11. Accountants' review report:
The accompanying unaudited condensed consolidated financial statements have been
reviewed by the Company's independent auditors in accordance with standards for
such limited reviews established by the American Institute of Certified Public
Accountants. The report of such auditors with respect to their limited review
is attached hereto as Exhibit A.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
LIQUIDITY AND CAPITAL RESOURCES:
Working capital increased to $36,797,501 at February 28, 1999, up from
$36,704,561 at August 31, 1998. As of February 28, 1999, the Company had cash
and cash investments of $530,700 compared to $908,268 at August 31, 1998.
Marketable securities increased from $12,291,767 to $13,753,558 during the same
period. The ratio of current assets to current liabilities increased to 10.69
to 1 at February 28, 1999 from 7.50 to 1 at August 31, 1998. Total assets
increased by $1,483,074 to $132,037,435 at February 28, 1999 from $130,554,361 at
August 31, 1998.
The working capital increase of $92,940 largely resulted from the decrease
in current liabilities, accrued at August 31, 1998. The ad valorem tax decrease
($984,666) and payment of the amount due to the profit sharing plan ($296,368)
were the most significant factors.
In connection with financing agreements with commercial banks (See Note 5 under
Notes to Condensed Consolidated Financial Statements), the Company has an unused
availability of funds of approximately $8.9 million at February 28, 1999.
RESULTS OF OPERATIONS:
Net income for the three months ending February 28, 1999 increased by $2,250,878
when compared to the second quarter of fiscal 1998, and $1,330,634 when compared
to the six-month period then ended. Income before income taxes increased
$4,553,688 and $3,092,093 for the three and six months ended February 28, 1999,
respectively, when compared to the same periods a year ago. This was largely
due to the sale of approximately 7,100 acres of land in Hendry County, Florida,
to the South Florida Water Management District for $4.4 million during the
current fiscal year. The pretax gain from the sale totaled $4.3 million.
Year-to-date earnings from agriculture activities decreased from the prior year
($2,804,057 vs. $2,500,482 for the second quarter, and $3,293,356 vs. $3,378,017
during the first half of fiscal 1999 and 1998, respectively).
Citrus
______
Citrus earnings increased both for the quarter ($2,228,693 during fiscal 1999
vs. $1,814,976 during fiscal 1998) and the six months ($2,540,053 during
fiscal 1999 vs. $2,186,826 during fiscal 1998) ended February 28, 1999, when
compared to the prior year. Improved market prices for this year's crop is the
primary reason for the increase in earnings for this division offset by lower
additional revenue from prior year's crop in 1998.
Sugarcane
_________
Sugarcane earnings were lower for the second quarter ($515,805 during fiscal 1999
vs. $556,413 during fiscal 1998) but are higher for the six months ended February
28, 1999 ($833,416 in 1999 vs. $780,807 in 1998), when compared to the prior year.
Improved sugar yield per acre continued to generate the higher year-to-date earnings.
<PAGE>
ITEM 2. Management's Discussion
RESULTS OF OPERATIONS (Continued)
Ranching
________
Ranch earnings were lower for both the quarter and six months ended February
28, 1999 when compared to the prior year ($59,559 vs. $129,093 for the
three months ended February 28, 1999 and February 28, 1998, respectively), and
($<80,113> vs. $410,384 for the six months ending February 28, 1999 and February
28, 1998, respectively). Lower market prices for beef is the primary cause of the decline.
General Corporate
_________________
The Company is continuing its marketing and permit activities for its land which
surrounds the Florida Gulf Coast University.
During November of 1996, the Company announced an agreement with Miromar
Development, Inc. of Montreal, Canada to sell 550 acres of land surrounding the
University site in Lee County for $9.35 million. The contract calls for 25
percent of the purchase price to be paid at closing, with the balance payable
over the four years. If the sale closes, it will generate a pretax gain of
approximately $8.7 million. The closing is dependent upon satisfactory completion
of various permit issues.
Additionally, the Company announced an option agreement with REJ Group, Inc., of
Cleveland, Ohio, during May 1997. The option agreement permits the acquisition
of a minimum 150 acres and a maximum of 400 acres within the 2,300 acre University
Village. The potential pretax gain to Alico, if the option is exercised, would
vary from $8.5 million to $24.5 million, depending on the time at which the
option is exercised, and the total number of acres selected.
In February 1999, the South Florida Water Management District purchased
approximately 12,728 acres of land in Hendry and Collier Counties, Florida from
Alico, Inc. for $8.8 million. Upon completion of the sale, the Company
recognized a gain of approximately $4.2 million on 7,142 acres. The remaining
acres were used in a like-kind exchange, as part of a $22.5 million acquisition
of approximately 7,680 acres in Hendry County, Florida that was completed during
March of 1999. The acquisition includes producing citrus and sugarcane
operations. The transaction included like-kind exchanges totaling $6.1 million
and debt restructuring that resulted in a $19 million mortgage. (See Note 10
under Notes to Consolidated Financial Statements.)
Year 2000 Compliance
____________________
The Company recognizes that Year 2000 issues could result in system failures
or miscalculations causing disruptions of operations, including, among others,
a temporary inability to process transactions, send invoices or engage in
similar normal business activities.
The Company has been engaged in an evaluation of its Year 2000 readiness in
connection with various aspects of its business. Specifically, the Company
has focused on its information technology and non-information technology
systems. In addition, the Company has analyzed its production processes and
products. The Company has also attempted to analyze Year 2000 issues relating
to third parties with whom the Company has a business relationship.
The current status of the Company's efforts is as follows:
Internal Systems, Processes and Products
________________________________________
Information Technology Systems:
The Company's accounting software provider and operating system provider have
advised the Company that such software is Year 2000 compliant.
Non-Information Technology Systems:
The Company does not believe that non-information technology systems are material
to its business; however, the Company has completed its review and testing of
such systems. The Company is not aware of any problems concerning its
non-information technology.
Products:
The Company's products are not date sensitive. Therefore, the Company does not
believe it has any material exposure with regard to its products as a result of
the Year 2000 issue.
Year 2000 Issues Relating to Third Parties
__________________________________________
Suppliers:
Certain products purchased by the Company are obtained from a limited group of
suppliers. The Company surveyed such suppliers in 1998 regarding their Year 2000
status. Absent widespread difficulties affecting several major vendors, the Company
does not anticipate that vendors' Year 2000 issues would have a material adverse
effect on the Company, because the Company believes alternative sources of supply
are available for all required components.
The Company is not currently aware of the Year 2000 readiness of certain outside
service companies. Any adverse effect caused by the failure of these providers
to be Year 2000 compliant is not currently susceptible to quantification.
Customers:
Because the Company intends to distribute the majority of its agricultural
products through third party distribution and marketing agreements, and because
the customer base is expected to change from year to year, the Company is unable
to predict the identity of most of its major customers in the Year 2000 and
thereafter. Accordingly, the Company is unable to make an inquiry as to whether
the customers' computer driven payment or purchasing processes are Year 2000
compliant.
A customer's Year 2000 issues could cause a delay in receipt of purchase orders
or in payment. If Year 2000 issues are widespread among the Company's customers,
the Company's sales and cash flow could be materially affected.
Cautionary Statement
____________________
This report of Form 10Q contains certain forward-looking statements. Actual
results could differ materially from those projected in the forward-looking
statements as a result of various factors, including but not limited to, the
competitive environment of the Company's products, weather forces and
government regulations.
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. Exhibits and reports on Form 8-K.
(a) Exhibits:
A. Accountant's Report.
B. Computation of Weighted Average Shares Outstanding at
February 28, 1999.
C. Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K.
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALICO, INC.
(Registrant)
April 13, 1999 W. Bernard Lester
Date President
Chief Operating Officer
(Signature)
April 13, 1999 L. Craig Simmons
Date Vice President
Chief Financial Officer
(Signature)
April 13, 1999 Deirdre Smith
Date Controller
(Signature)
<PAGE>
EXHIBIT A
Independent Accountants' Review Report
______________________________________
The Stockholders and
Board of Directors
Alico, Inc:
We have reviewed the condensed consolidated balance sheet of Alico, Inc. and
subsidiary as of February 28, 1999, and the related condensed consolidated
statements of operations and retained earnings for the three-month and six-month
periods ended February 28, 1999 and 1998, and the related condensed consolidated
statements of cash flows for the six-month periods ended February 28, 1999 and
1998. These condensed consolidated financial statements are the responsibility
of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical review procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted auditing standards, the objective of which
is the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that should
be made to the condensed consolidated financial statements referred to above for
them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Alico, Inc. and subsidiary as of
August 31, 1998 and the related consolidated statements of operations,
stockholders' equity and cash flows for the year then ended (not presented
herein); and in our report dated October 9, 1998 we expressed an unqualified
opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet
as of August 31, 1998, is fairly presented, in all material respects, in
relation to the consolidated balance sheet from which it has been derived.
KPMG LLP
(Signature)
Orlando, Florida
March 30, 1999
<PAGE>
FORM 10-Q
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of February 28, 1999:
Number of shares outstanding at August 31, 1998 7,027,827
_________
_________
Number of shares outstanding at February 28, 1999 7,027,827
_________
_________
Weighted Average 09/01/98 - 02/28/99 7,027,827
_________
_________
EXHIBIT B
<PAGE>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET OF ALICO, INC. AND SUBSIDIARY AS OF FEBRUARY 28, 1999 AND THE
RELATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS AND CASH FLOWS FOR
THE SIX MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<CASH> 530700
<SECURITIES> 13753558
<RECEIVABLES> 9161000
<ALLOWANCES> 0
<INVENTORY> 16646791
<CURRENT-ASSETS> 40593783
<PP&E> 110690755
<DEPRECIATION> 29803315
<TOTAL-ASSETS> 13203435
<CURRENT-LIABILITIES> 3796282
<BONDS> 0
0
0
<COMMON> 7027827
<OTHER-SE> 83719039
<TOTAL-LIABILITY-AND-EQUITY> 132037435
<SALES> 18362348
<TOTAL-REVENUES> 23119953
<CGS> 13950829
<TOTAL-COSTS> 13950829
<OTHER-EXPENSES> 1375612
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 806614
<INCOME-PRETAX> 6837137
<INCOME-TAX> 3108927
<INCOME-CONTINUING> 3728210
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3728210
<EPS-PRIMARY> .53
<EPS-DILUTED> .53
</TABLE>
