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 nine months ended May 31, 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 July 15, 1999.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(See Accountants' Review Report)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
May 31, 1999 May 31, 1998 May 31, 1999 May 31, 1998
____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
Revenue:
Citrus $12,953,171 $ 7,692,572 $23,074,822 $19,880,035
Sugarcane 3,584,534 1,529,918 6,999,338 6,026,361
Ranch 1,851,990 1,898,400 5,559,720 6,141,814
Rock products and Sand 334,006 334,033 965,996 909,701
Oil lease and land
rentals 274,653 157,199 694,126 421,208
Forest products 16,958 27,216 83,658 109,329
Profit on sales of real
estate (1,065) 448,871 4,292,311 1,082,243
Interest and investment
income 396,608 555,854 832,899 1,175,891
Other 38,688 24,948 66,626 67,623
___________ ___________ ___________ _________
Total revenue 19,449,543 12,669,011 42,569,496 35,814,205
___________ ___________ ___________ ___________
Cost and expenses:
Citrus production,
Harvesting and
marketing 12,221,354 6,069,739 19,802,952 16,070,376
Sugarcane production
and harvesting 2,064,833 824,211 4,646,221 4,539,847
Ranch 1,816,363 1,686,088 5,604,206 5,519,118
Real estate expenses 158,162 117,652 307,923 332,071
Interest 597,950 256,106 1,404,564 634,436
Other, general and
administrative 736,279 639,594 2,111,891 1,897,692
___________ ___________ __________ ___________
Total costs and
expenses 17,594,941 9,593,390 33,877,757 28,993,540
___________ ___________ ___________ ___________
Income before
income taxes 1,854,602 3,075,621 8,691,739 6,820,665
Provision for
income taxes 684,620 1,173,587 3,793,547 2,521,055
___________ ___________ ___________ ___________
Net income 1,169,982 1,902,034 4,898,192 4,299,610
___________ ___________ ___________ ___________
___________ ___________ ___________ ___________
Weighted average number of
shares outstanding 7,027,827 7,027,827 7,027,827 7,027,827
Per share amounts:
Net income $ .17 $ .27 $ .70 $ .61
Dividends $ - $ - $ .50 $ .60
<FN>
See accompanying notes to condensed consolidated financial statements.
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ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
(Unaudited) (Unaudited)
May 31, 1999 August 31, 1998
____________ _______________
ASSETS
<S> <C> <C>
Current assets:
Cash and cash investments $ 426,298 $ 908,268
Marketable Securities 14,968,858 12,291,767
Accounts and mortgage notes receivable 13,118,902 11,193,508
Inventories 14,426,907 17,625,923
Other current assets 210,575 334,577
____________ _____________
Total current assets 43,151,540 42,354,043
Mortgage notes receivable, non-current 420,430 514,796
Land held for development and sale 9,256,415 8,837,957
Other assets 998,089 965,230
Property, buildings and equipment 129,153,336 107,064,751
Less: Accumulated depreciation (30,779,206) (29,182,416)
____________ ____________
Total assets $152,200,604 $130,554,361
____________ ____________
____________ ____________
<PAGE>
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
(Continued)
(Unaudited) (Unaudited)
<S> May 31, 1999 August 31,1998
____________ ______________
LIABILITIES
<C> <C>
Current liabilities:
Accounts payable $2,489,589 $ 1,464,159
Due to profit sharing plan - 296,368
Accrued ad valorem taxes 859,589 1,329,136
Current portion of notes payable 1,322,033 28,145
Accrued expenses 383,063 538,897
Income taxes payable 279,541 623,128
Deferred income taxes 2,224,199 1,023,886
Deferred revenue - 345,763
____________ ____________
Total current liabilities 7,558,014 5,649,482
Notes payable 40,840,168 23,210,723
Deferred income taxes 10,887,993 11,723,895
Deferred retirement benefits 562,428 3,320
____________ ____________
Total liabilities 59,848,603 40,587,420
____________ ____________
STOCKHOLDERS' EQUITY & COMPREHENSIVE INCOME
Common stock $ 7,027,827 $ 7,027,827
Accumulated other comprehensive income 1,169,127 168,345
Retained earnings 84,155,047 82,770,769
____________ ____________
Total stockholders' equity 92,352,001 89,966,941
and comprehensive income ____________ ____________
Total liabilities and
stockholders' equity 152,200,604 $130,554,361
____________ ____________
____________ ____________
<FN>
See Accompanying notes to condensed consolidated financial statements.
</TABLE>
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ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY & COMPREHENSIVE INCOME
(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 May 31, 1998 - - 4,299,610 -
Unrealized gain
on securities,
net of tax - - - 186,321
Dividends paid - - (4,216,696) -
__________ __________ ___________ _________
Balances May 31, 1998 7,027,827 7,027,827 80,294,573 1,099,380
__________ __________ ___________ _________
__________ __________ ___________ _________
Balances August 31, 1998 7,027,827 7,027,827 82,770,769 168,345
Net income for the
nine months ended
May 31, 1999 - - 4,898,192 -
Unrealized gain
on securities,
net of tax - - - 1,000,782
Dividends paid - - (3,513,914) -
_________ __________ ___________ __________
Balances May 31, 1999 7,027,827 $7,027,827 $84,155,047 $1,169,127
_________ __________ ___________ __________
_________ __________ ___________ __________
See accompanying notes to condensed consolidated financial statement.
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ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(See Accountants' Review Report)
(Unaudited)
May 31, 1999 May 31,1998
____________ ___________
<S>
Cash flows from operating activities:
<C> <C>
Net income $ 4,898,192 $4,299,610
Adjustments to reconcile net income to cash
provided from operating activities:
Depreciation 3,891,638 3,415,600
Accrued donation (5,399) (206,676)
Net decrease in current assets and
liabilities 130,444 (1,192,318)
Deferred income taxes (239,397) 116,782
Gain on sale of real estate (4,268,132) (1,082,243)
Other 458,695 (1,132,440)
___________ ___________
Net cash provided from
operating activities 4,866,041 4,218,315
___________ ___________
Cash flows from investing activities:
Purchases of property and equipment (24,169,924) (3,155,021)
Proceeds from sales of real estate 4,404,902 1,157,153
Proceeds from sales of other property
and equipment - 355,930
Purchases of marketable securities (3,258,678) (4,466,407)
Proceeds from sales of marketable securities 2,160,714 3,090,054
___________ __________
Net cash used for
investing activities (20,862,986) (3,018,291)
___________ __________
Cash flows from financing activities:
Notes receivable collections 105,556 20,240
Repayment of bank loan (26,328,667) (16,011,000)
Proceeds from bank loan 45,252,000 18,230,000
Dividends paid (3,513,914) (4,216,696)
___________ ___________
Net cash used for
financing activities 15,514,975 (1,977,456)
___________ ___________
Net decrease in cash and
cash investments $ (481,970) $ (777,432)
___________ ___________
___________ ___________
Supplemental disclosures of cash flow information:
Cash paid for interest, net of
amount capitalized $ 1,671,478 $ 2,761,430
___________ ___________
___________ ___________
Cash paid for income taxes, including $ 4,379,835 $ 543,959
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 at May 31, 1999 and August 31, 1998 and the
consolidated results of operations and cash flows for the nine months ended
May 31, 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 $ 160,000 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:
May 31, August 31,
1999 1998
____________ __________
Unharvested fruit crop on trees $ 5,684 $ 7,466
Unharvested sugarcane 1,971 2,358
Beef cattle 6,597 7,535
Sod 175 267
_______ _______
Total inventories $14,427 $17,626
_______ _______
_______ _______
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4. Income taxes:
The provision for income taxes for the quarters and nine months ended May 31,
1999 and 1998 is summarized as follows:
Three Months Ended Nine Months Ended
May 31, 1999 May 31, 1998 May 31, 1999 May 31, 1998
____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
Current:
Federal income tax $ (369,308) $ 893,001 $ 1,679,631 $2,113,937
State income tax 83,380 181,212 273,428 348,148
___________ __________ ___________ __________
(285,928) 1,074,213 1,953,059 2,462,085
___________ __________ ___________ __________
Deferred:
Federal income tax 870,431 89,787 1,656,439 53,281
State income tax 100,117 9,587 184,049 5,689
___________ _________ ___________ __________
970,548 99,374 1,840,488 58,970
___________ _________ ___________ __________
Total provision for
income taxes $ 684,620 $1,173,587 $ 3,793,547 $2,521,055
__________ __________ __________ __________
__________ __________ __________ __________
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 nine months ended May 31, 1999 and 1998:
Three Months Ended Nine Months Ended
May 31, 1999 May 31, 1998 May 31, 1999 May 31, 1998
_____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
Expected income tax $ 630,564 $1,045,711 $2,955,191 $2,319,026
Increase (decrease)
resulting from:
State income taxes,
net of federal
benefit 67,322 111,645 315,510 247,590
Nontaxable interest
and dividends (22,352) (17,210) (68,588) (68,183)
Interest and penalties
net of federal and
state benefit - - 593,878 -
Other reconciling
items, net 9,086 33,441 (2,444) 22,622
__________ __________ _________ __________
Total provision
for income
taxes $ 684,620 $1,173,587 $3,793,547 $2,521,055
__________ __________ __________ __________
__________ __________ __________ __________
<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 for 1991 & 1992 in February 1999. The resulting income
taxes, related to the timing of recognition of certain items previously expensed,
totaled $1,037,803 and was provided for in prior years and as such, had no financial
statement impact.
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 2001 and up to $7,000,000
which is due on demand. In March 1999, the Company mortgaged 7,680 acres for $19
million in connection with a $22.5 million acquisition of producing citrus and sugarcane
operations. The total amount of long-term debt under these agreements at May 31, 1999 and
August 31, 1998 was $40,840,168 and $23,210,723, respectively.
Maturities of the indebtedness of the Company over the next five years are as follows:
2000- $1,322,033; 2001- $19,412,033; 2002- $6,322,033; 2004- $1,322,033; 2005- $1,322,033.
Interest cost expensed and capitalized during the nine months ended May 31,1999
and May 31, 1998 was as follows:
1999 1998
__________ ________
Interest expensed $1,404,564 $634,436
Interest capitalized 135,130 257,106
__________ ________
Total interest cost $1,539,694 $891,542
__________ ________
__________ ________
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 nine months ended May 31, 1999:
____________________________________________________________
General Consolidated
Citrus Sugarcane Ranch Corporate* Total
____________________________________________________________
Revenue $ 23,074,822 6,999,338 5,559,720 6,935,616 42,569,496
Costs and
expenses 19,802,952 4,646,221 5,604,206 3,824,378 33,877,757
Depreciation and
amortization 1,664,866 933,459 982,012 226,991 3,807,328
Segment profit
(loss) 3,271,870 2,353,117 (44,486) 3,111,238 8,691,739
Segment assets 39,621,065 38,252,308 11,977,906 62,349,325 152,200,604
*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 distributed
under the Plan.
10. 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 decreased to $35,593,526 at May 31, 1999, from
$36,704,561 at August 31, 1998. As of May 31, 1999, the Company had cash
and cash investments of $426,298 compared to $908,268 at August 31, 1998. Marketable
securities increased from $12,291,767 to $14,968,858 during the same period. The ratio
of current assets to current liabilities decreased to 5.71 to 1 at May 31, 1999 from 7.50
to 1 at August 31, 1998. Total assets increased by $21,646,243 to $152,200,604 at May 31,
1999 from $130,554,361 at August 31, 1998.
The working capital decrease of $1,111,035 largely resulted from the increase in current
liabilities accrued at May 31, 1999. The increases in the current portion of notes payable
($1,293,888) and current deferred income taxes($1,200,313) were the most significant current
liability factors. This was offset, somewhat, by the increases in marketable securities
($2,677,091) and receivables ($1,925,394), however, inventories decreased $ 3,199,016 during
the same period.
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 $ 10.9 million at May 31, 1999.
RESULTS OF OPERATIONS:
Net income for the three months ending May 31, 1999 decreased by $732,052
when compared to the third quarter of fiscal 1998, but increased $598,582 when
compared to the nine-month period then ended. Income before income taxes
decreased $1,221,019 and increased $1,871,074 for the three and nine months ended
May 31, 1999,respectively, when compared to the same periods a year ago. The year-to-date
increase was largely impacted by 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 pre-tax gain from the sale totaled $4.2 million.
Year-to-date earnings from agriculture activities decreased from the prior year
($2,287,145 vs. $2,540,852 for the third quarter, and $5,580,501 vs.
$5,918,869 during the first nine months of fiscal 1999 and 1998, respectively).
Citrus
Citrus earnings decreased both for the quarter ($731,817 during fiscal 1999
vs. $1,622,833 during fiscal 1998) and the nine months ($3,271,870 during fiscal
1999 vs. $3,809,659 during fiscal 1998) ended May 31, 1999, when compared to the
prior year. Market prices for citrus have improved over last year. However, a decrease
in yields has offset the price increases and is the primary cause of the earnings decline.
Sugarcane
Sugarcane earnings were higher for the third quarter ($1,519,701 during fiscal
1999 vs. $705,707 during fiscal 1998) and for the nine months ended
May 31, 1999 ($2,353,117 in 1999 vs. $1,486,514 in 1998), when compared to the
prior year. Improved sugar yield per acre generated 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 nine months ended May 31,
1999 when compared to the prior year ($35,627 vs. $212,312 for the
quarter ended May 31, 1999 and May 31, 1998, respectively), and
($<44,486> vs. $622,696 for the nine months ending May 31, 1999 and
May 31, 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 5 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 qualification.
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 Statements
_____________________
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
May 31, 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)
July 15, 1999 W. Bernard Lester
Date President
Chief Operating Officer
(Signature)
July 15, 1999 L. Craig Simmons
Date Vice President
Chief Financial Officer
(Signature)
July 15, 1999 Deirdre Purvis
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 May 31, 1999, and the related condensed consolidated
statements of operations and stockholders equity and comprehensive income for the
three-month and nine-month periods ended May 31, 1999 and 1998, and the related
condensed consolidated statements of cash flows for the nine-month periods ended
May 31, 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)
June 30, 1999
Orlando, Florida
<PAGE>
FORM 10-Q
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of May 31, 1999:
Number of shares outstanding at August 31, 1998 7,027,827
_________
_________
Number of shares outstanding at May 31, 1999 7,027,827
_________
_________
Weighted Average 09/01/98 - 05/31/99 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 MAY 31, 1999 AND THE
RELATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS AND CASH FLOWS FOR
THE NINE MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> MAY-31-1999
<CASH> 426298
<SECURITIES> 14968858
<RECEIVABLES> 13118902
<ALLOWANCES> 0
<INVENTORY> 14426907
<CURRENT-ASSETS> 43151540
<PP&E> 129153336
<DEPRECIATION> 30779206
<TOTAL-ASSETS> 152200604
<CURRENT-LIABILITIES> 7558014
<BONDS> 0
0
0
<COMMON> 7027827
<OTHER-SE> 85324174
<TOTAL-LIABILITY-AND-EQUITY> 152200604
<SALES> 37377660
<TOTAL-REVENUES> 42569496
<CGS> 30053379
<TOTAL-COSTS> 30053379
<OTHER-EXPENSES> 2111891
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1404564
<INCOME-PRETAX> 8691739
<INCOME-TAX> 3793547
<INCOME-CONTINUING> 4898192
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4898192
<EPS-BASIC> .70
<EPS-DILUTED> .70
</TABLE>
