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 29, 2000.
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 863/675-2966
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 February 29, 2000.
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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. 29, Feb. 28, Feb. 29, Feb. 28,
2000 1999 2000 1999
___________ ___________ ___________ ____________
<S> <C> <C> <C> <C>
Revenue:
Citrus $ 9,169,863 $ 8,535,053 $ 10,872,427 $ 10,121,651
Sugarcane 5,021,040 2,221,271 6,472,180 3,414,804
Ranch 582,446 1,060,374 3,569,264 3,707,730
Rock products
and sand 333,432 279,816 682,272 631,990
Oil lease and
land rentals 193,876 285,024 607,012 419,473
Forest products 12,168 12,452 45,416 66,700
Profit on sales of real
estate 132,003 4,293,376 12,991,854 4,293,376
Interest and
investment income 1,565,781 240,439 2,335,453 436,291
Other 10,628 16,392 10,455 27,938
_________ _________ __________ _________
Total revenue 17,021,237 16,944,197 37,586,333 23,119,953
__________ __________ __________ __________
Cost and expenses:
Citrus production,
harvesting and
marketing 8,527,121 6,306,360 9,602,576 7,581,598
Sugarcane production
and harvesting 4,452,486 1,705,466 5,875,186 2,581,388
Ranch 523,905 1,000,815 3,423,473 3,787,843
Real estate expenses 118,464 18,649 287,818 149,761
Interest 777,157 397,677 1,409,556 806,614
Other, general and
administrative 725,944 686,625 1,321,829 1,375,612
_________ _________ _________ _________
Total costs and
expenses 15,125,077 10,115,592 21,920,438 16,282,816
__________ __________ __________ __________
Income before income taxes 1,896,160 6,828,605 15,665,895 6,837,137
Provision for income taxes 643,575 3,127,489 5,801,939 3,108,927
_________ _________ __________ __________
Net income 1,252,585 3,701,116 9,863,956 3,728,210
_________ _________ _________ _________
_________ _________ _________ _________
Weighted average number
of shares outstanding 7,027,827 7,027,827 7,027,827 7,027,827
_________ _________ _________ _________
_________ _________ _________ _________
Per share amounts:
Net income $ .18 $ .53 $ 1.40 $ .53
Dividends $ - $ - $ .30 $ .50
<FN>
See accompanying notes to condensed consolidated financial statements.
</TABLE>
ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
February 29, 2000 August 31, 1999
_________________ ________________
ASSETS
[S] [C] [C]
Current assets:
Cash and cash investments $ 777,094 $ 740,829
Marketable Securities 16,443,333 15,043,713
Accounts receivable 7,994,774 8,030,863
Notes receivable 3,210,205 73,589
Inventories 15,883,100 20,547,215
Refundable income taxes 0 549,586
Other current assets 173,119 195,904
____________ ____________
Total current assets 44,481,625 45,181,699
Notes receivable, non-current 8,730,703 394,203
Land held for development and sale 7,401,489 9,429,295
Investments 901,606 946,145
Property, buildings and equipment 138,275,776 132,372,839
Less: Accumulated depreciation (32,821,390) (31,402,071)
____________ ____________
Total assets $166,969,809 $156,922,110
____________ ____________
____________ ____________
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CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
(Continued)
<S> February 29, 2000 August 31, 1999
LIABILITIES _________________ _______________
<C> <C>
Current liabilities:
Accounts payable $ 1,690,853 $ 2,571,579
Due to profit sharing plan 0 269,177
Accrued ad valorem taxes 503,760 1,997,834
Current portion of notes payable 1,322,033 1,322,033
Accrued expenses 723,497 683,848
Income taxes payable 1,262,134 0
Deferred income taxes 1,510,960 1,893,360
____________ ____________
Total current liabilities 7,013,237 8,737,831
Notes payable 46,072,579 45,630,912
Deferred income taxes 14,602,398 10,780,521
Deferred retirement benefits 390,337 377,487
____________ ____________
Total liabilities 68,078,551 65,526,751
____________ ____________
STOCKHOLDERS' EQUITY
Common stock $ 7,027,827 $ 7,027,827
Accumulated other comprehensive income 752,359 1,029,953
Additional paid in capital 17,885 0
Retained earnings 91,093,187 83,337,579
____________ ____________
Total stockholders' equity 98,891,258 91,395,359
____________ ____________
Total liabilities and
stockholders' equity $166,969,809 $156,922,110
____________ ____________
____________ ____________
<FN>
See Accompanying notes to condensed consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Accumulated
Common Stock Other Com- Additonal
Shares Retained prehensive Paid-In-
Issued Amount Earnings Income Capital Total
_________ _________ __________ ________ _________ _________
<S> <C> <C> <C> <C> <C> <C>
Balances,
August 31,
1998 7,027,827 $7,027,827 $82,770,769 $168,345 0 $89,966,941
_______________
Comprehensive income:
Net income for
the year ended
August 31, 1999 - - 4,080,724 - - 4,080,724
Unrealized gains
on Securities, net
of taxes and
reclassification
adjustment
(see disclosure) - - - 861,608 - 861,608
________
Total Comprehensive income: 4,942,332
Dividends paid - - (3,513,914) - - (3,513,914)
Stock based
compensation - - - - - -
________ __________ ___________ __________ ______ __________
Balances,
August 31,
1999 7,027,827 $7,027,827 $83,337,579 $1,029,953 - $91,395,359
_______________
Comprehensive income:
Net income for the
six months ended
February 29, 2000 - - 9,863,956 - - 9,863,956
Unrealized gains on
Securities, net of
taxes and
reclassification
adjustment
(see disclosure) - - - (277,594) - (277,594)
___________
Total Comprehensive income: 9,586,362
Dividends paid - - (2,108,348) - - (2,108,348)
Stock based
compensation - - - - 17,885 17,885
_________ __________ ___________ __________________ ___________
Balances,
February 29,
2000 7,027,827 $7,027,827 $91,093,187 $ 752,359 $17,885 $98,891,258
_________ __________ ___________ __________________ ___________
_________ __________ ___________ __________________ ___________
Disclosure of 2000 1999
reclassification amount: ___________ _________
Unrealized holding
gains (losses) arising
during the period $1,503,219 $824,144
Less: reclassification
adjustment for gains
(losses) included in
net income 1,780,813 (37,464)
___________ __________
Net unrealized
(losses) gains
on securities $ (277,594) $ 861,608
___________ __________
___________ _________
<FN>
See accompanying notes to consolidated financial statements.
ALICO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(See Accountants' Review Report)
Six Months Ended
Feb. 29, 2000 Feb. 28, 1999
2000 1999
<S> _______________________________
Cash flows from operating activities:
<C> <C>
Net income $ 9,863,956 $ 3,728,210
Adjustments to reconcile net income to cash
provided from (used for) operating activities:
Depreciation and amortization 2,747,779 2,411,785
Net decrease in current assets and
liabilities 1,567,053 1,055,830
Deferred income taxes 3,342,358 (968,626)
Gain on sales of real estate (12,991,854) (4,268 132)
Other (202,236) 389,952
__________ __________
Net cash provided from
operating activities 4,327,056 2,349,019
__________ __________
Cash flows from (used for) investing activities:
Purchases of property and equipment (6,642,920) (4,998,455)
Proceeds from sales of real estate 4,141,731 4,404 902
Proceeds from sales of property and equipment 309,712 0
Purchases of marketable securities (1,024,602) (1,986,946)
Proceeds from sales of marketable securities 553,895 1,428,472
__________ __________
Net cash (used for)
investing activities (2,662,184) (1,152,027)
__________ __________
Cash flows from (used for) financing activities:
Notes receivable collections 38,074 84,354
Repayment of bank loan (16,201,724) (16,747,000)
Proceeds from bank loan 16,643,391 18,602,000
Dividends paid (2,108,348) (3,513,914)
__________ __________
Net cash (used for)
financing activities (1,628,607) (1,574,560)
__________ __________
Net increase (decrease) in cash and
cash investments $ 36,265 $ (377,568)
__________ __________
__________ __________
Supplemental disclosures of cash flow information:
Cash paid for interest, net of
amount capitalized $ 1,560,086 $ 776,717
__________ __________
__________ __________
Cash paid for income taxes, including $ 383,817 $3,403,372
related interest __________ __________
__________ __________
Non-cash investing and financing activities:
Mortgage notes receivable issued in exchange
for land, less unamortized discount $ 11,511,190 $ 0
___________ __________
___________ __________
Fair value adjustments to securities
available for sale $ 444,520 $ 856,196
__________ __________
__________ __________
Income tax effect related to fair
value adjustment $ 166,926 $ 322,187
__________ __________
__________ __________
<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, 2000.
In the opinion of Management, the accompanying unaudited condensed consolidated
financial statements contain all adjustments (consisting only of normal recur-
ring accruals) necessary for a fair presentation of its consolidated financial
position at February 29, 2000 and August 31, 1999 and the consolidated results
of operations and cash flows for the six months ended February 29, 2000 and
1999.
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 has caused the Company to
recognize additional revenue from the prior year's crop totaling $849,829 in
2000 and $758,750 in 1999. 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. Notes receivable:
Notes receivable include mortgages and other notes receivable. Mortgage notes
receivable arose from real estate sales. The balances are as follows:
February 29, August 31,
2000 1999
____________ __________
Mortgage notes receivable
on retail land sales $ 221,190 $ 246,660
Mortgage notes receivable
on bulk land sales 12,344,684 0
Less unamortized discount based
on imputed interest rate of 8% (833,494) 0
Other notes receivable 208,528 221,132
___________ __________
Total mortgage notes receivable $ 11,940,908 $ 467,792
Less current portion 3,210,205 73,589
___________ __________
Non-current portion $ 8,730,703 $ 394,203
___________ __________
___________ __________
In September 1999, the Company received a mortgage note in exchange for land
sold. The note totaled $12,344,684 and is due annually in September, bearing
interest at 4%, over the next four years.
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4. Inventories:
A summary of the Company's inventories (in thousands) is shown below:
February 29, August 31,
2000 1999
____________ __________
Unharvested fruit crop on trees $ 8,192 $ 9,359
Unharvested sugarcane 1,652 3,639
Beef cattle 5,898 7,433
Sod 141 116
____________ __________
Total inventories $ 15,883 $ 20,547
5. Income taxes:
The provision for income taxes for the quarters and six months ended February
29, 2000 and February 28, 1999 is summarized as follows:
Three Months Ended Six Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
2000 1999 2000 1999
__________ __________ ___________ ____________
<C> <C> <C> <C>
Current:
Federal income tax $ 1,137,366 $1,948,486 $ 1,829,848 $ 2,048,936
State income tax 139,780 172,997 260,566 190,048
__________ __________ ___________ ____________
1,277,146 2,121,483 2,090,414 2,238,987
__________ __________ ___________ ____________
Deferred:
Federal income tax (555,221) 908,948 3,154,796 786,008
State income tax (78,350) 97,058 556,729 83,932
________ _________ _________ _______
(633,571) 1,006,006 3,711,525 869,940
________ _________ _________ _______
Total provision for
income taxes $ 643,575 $3,127,489 $ 5,801,939 $3,108,927
________ __________ ___________ ___________
________ __________ ___________ ___________
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 29, 2000 and February 28, 1999:
Three Months Ended Six Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
2000 1999 2000 1999
________ __________ __________ __________
<C> <C> <C> <C>
Expected income tax $644,695 $2,321,726 $5,326,404 $2,324,627
Increase (decrease)
resulting from:
State income taxes, net
of federal benefit 41,236 247,878 539,415 248,188
Nontaxable interest and
dividends (31,052) (22,411) (57,788) (46,236)
Interest and penalties net of
federal and state benefit 0 593,878 0 593,878
Other reconciling items,
net (11,304) (13,582) (6,092) (11,530)
________ __________ _________ _________
Total provision for
income taxes $643,575 $3,127,489 $5,801,939 $3,108,927
_______ __________ __________ ___________
_______ __________ __________ ___________
<PAGE>
The Company is currently under examination by the Internal Revenue Service
for the years ended August 31, 1995 and 1996. When the examinations are
resolved, any income taxes due will become currently payable. However, the
majority of the proposed adjustments relate to, among other things, the
Company's computation of the deferral determination of the amounts of certain
charitable contributions, all of which have been provided for in the
Company's deferred tax liability account. The Company plans to continue to
defend the positions taken in its income tax returns.
6. Indebtedness: The Company has financing agreements with commercial banks
that permit the Company to borrow up to $44 million. The financing
agreements allow the Company to borrow up to $41 million which is due in
2001 and up to $3 million 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 February 29, 2000 and August 31,
1999 was $47,394,612 and $46,952,945, respectively.
Maturities of the indebtness of the Company over the next five years are as
follows: 2000- $1,322,033; 2001- $32,582,033; 2002- $1,322,033;
2004- $1,322,033; 2005- $1,322,033; thereafter $9,524,447.
Interest cost expensed and capitalized during the six months ended
February 29, 2000 and February 29, 1999 was as follows:
2000 1999
________ ________
Interest expensed 1,409,556 $806,614
Interest capitalized 228,667 74,190
________ ________
Total interest cost $1,638,223 $880,804
________ ________
________ ________
7. Dividends:
On October 5, 1999 the Company declared a year-end dividend of $.30 per
share, which was paid on November 5, 1999.
8. 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 29, 2000:
____________________________________________________________
General Consolidated
Citrus Sugarcane Ranch Corporate* Total
____________________________________________________________
Revenue $ 10,872,427 6,472,180 3,569,264 16,672,462 37,586,333
Costs and
expenses 9,602,576 5,875,186 3,423,473 3,019,203 21,920,438
Depreciation and
amortization 1,214,698 992,681 288,922 251,478 2,747,779
Segment profit 1,269,851 596,994 145,791 13,653,259 15,665,895
*Consists of rents, investments, real estate activities and other such
items of a general corporate nature.
9. Future Application of Accounting Standards
In June 1998, the Financial Standards Board issued Statements of Financial
Accounting Standards No. 133 (SFAS 133), "Accounting for Derivative
instruments and Hedging Activities". SFAS 133 requires that an entity
recognize all derivatives as either assets or liabilities in the statement
of financial position and measure those instruments at fair value. Gains
and losses resulting from changes in the values of those derivatives
would be accounted for depending on the use of the derivative and whether
it qualifies for hedge accounting. The key criterion for hedge accounting is
that the hedging relationship must be highly effective in achieving
offsetting changes in fair value or cash flows.
In June 1999, the FASB issued SFAS 137 which amended the implementation date
for SFAS 133 to be effective for all fiscal years beginning after June 15, 2000.
10. Stock Option Plan
On November 3, 1998, the Company adopted the Alico, Inc., Incentive Equity
Plan (The Plan) pursuant to which the Board of Directors of the Company may
grant options, stock appreciation rights, and/or restricted stock to certain
directors and employees. The Plan authorizes grants of shares or options to
purchase up to 650,000 shares of authorized but unissued common stock. Stock
options granted have a maximum term of ten years and have vesting schedules
which are at the discretion of the Board of Directors options and determined
on the effective date of the grant.
Effective April 6, 1999, the Company granted 34,700 with an exercise price of
$14.62 and a fair value of $14.62. Additionally, effective September 9,
1999, the Company granted 14,992 options with an exercise price of $14.62 and
a fair value of $15.813. Options granted have a ten year contracual life.
As of February 29, 2000, there were 49,692 options outstanding with an weighted
average exercise price of $14.62 and a weighted average remaining contractual
life of ten years.
At February 29, 2000, there were no shares exercisable and 600,308 shares
available and for grant under the Plan.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
LIQUIDITY AND CAPITAL RESOURCES:
Working capital increased to $37,468,388 at February 29, 2000, up from
$36,443,868 at August 31, 1999. As of February 29, 2000, the Company had
cash and cash investments of $777,094 compared to $740,829 at August 31,
1999. Marketable securities increased from $15,043,713 to $16,443,333 during
the same period. The ratio of current assets to current liabilities
increased to 6.34 to 1 at February 29, 2000 from 5.17 to 1 at August 31,
1999. Total assets increased by $10,047,699 to $166,969,809 at February 29,
2000 from $156,922,110 at August 31, 1999.
In connection with financing agreements with commercial banks (See Note 6
under Notes to Condensed Consolidated Financial Statements), the Company has
an unused availability of funds of approximately $ 14.8 million at February
29, 2000.
RESULTS OF OPERATIONS:
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. The results of operations for the stated periods are not
necessarily indicative of results to be expected for the full year.
Net income for the three months ending February 29, 2000 decreased by
$2,448,531 when compared to the second quarter of fiscal 1999, but increased
by $6,135,746 when compared to the six-month period then ended. Income
before income taxes decreased and increased $4,932,445 and $8,828,758 for the
three and six months ended February 28, 2000, respectively, when compared to
the same periods a year ago.
Year-to-date earnings from agriculture activities decreased from the prior
year ($1,269,837 vs. $2,804,057 for the second quarter, and $2,012,636 vs.
3,293,356 during the first half of fiscal 2000 and 1999, respectively).
During September of 1999, the Company completed a sale of 1,230 acres of land
surrounding the University site in Lee County for $16.5 million. The
contract called for 25 percent of the purchase price to be paid at closing,
with the balance of $12.3 million payable annually over the next four years.
The sale generated a pre-tax gain of approximately $12.9 million.
Interest and investment income increased for the second quarter of fiscal
2000 and the six months ended February 29, 2000 ($1,325,342 and $1,899,162,
respectively). The increase was largely due to the realization of gain
from securities sales that generated a pre-tax earning of $1,522,844 during
the six months ended February 29, 2000.
Citrus
______
Citrus earnings decreased for both the quarter ($642,742 during fiscal 2000 vs.
$2,228,693 during fiscal 1999) and the six months ($1,269,851 during fiscal
2000 vs. $2,540,053 during fiscal 1999) ended February 29, 2000, when compared
to the prior year. Lower market prices for this year's crop is the primary
reason for the decrease in earnings for this division.
Sugarcane
_________
Sugarcane earnings were somewhat improved for the second quarter ($568,554
during fiscal 2000 vs. $515,805 during fiscal year 1999) but are lower for the
six months ended February 29, 2000 ($596,994 in 2000 vs. $833,416 in 1999),
when compared to the same periods a year ago. Although more acres are being
harvested, decreased yields and lower market prices have combined to generate
the decline.
Ranching
________
Ranch earnings were lower for the second quarter when compared to the prior
year ($58,541 vs. $ 59,559 for the three months ended February 29, 2000 and
February 28, 1999, respectively), but improved for the six months ended
February 29, 2000 ($145,791 vs. <80,113> for the six months ending February
29, 2000 and February 28, 1999, respectively). Improved market prices for
beef is the primary cause of the rise.
General Corporate
_________________
In July of 1999, the Company entered into and announced a contract to sell
402 acres near the Florida Gulf Coast University for approximately $15.5
million. This agreement has been revised, in accordance with the original
contract, to convey 44.2 acres for approximately $5 million and is still
scheduled to close during fiscal 2001. If the sale is consummated, it is
expected to generate a pre-tax gain of approximately $4.8 million.
Additionally, the Company has agreed to sell 190 acres, also near the
University, for approximately $6.6 million. This sale is also expected to
close during fiscal 2001 and could potentially generate a $5.8 million
pre-tax gain.
In April of 2000, the Company entered into an agreement to sell appoximately
2,500 acres for $34 million. The subject property includes the acreage referred
to above and the agreement provides for assignment of the related sales
contracts to the perspective purchaser. This sale could potentially close
during the current fiscal year and, if it does, a pre-tax of approximately
$32.1 million will be generated by the transaction.
In December of 1999, the Company entered into a contract to sell approximately
2,500 acres of its Lee County property for $50 million. The property is
located east of the University. The date(s) of closing(s) will become
determinable after the developable acreage is determined and may occur in
phases.
The Company is continuing its marketing and permit activities for its land which
surrounds the Florida Gulf Coast University.
Cautionary Statement
____________________
Readers should note, in particular, that this Form 10-Q contains forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), that involve substantial risks and
uncertainties. When used in this document, or in the documents incorporated
by reference herein, the words "anticipate", "believe", "estimate", "may",
"intend", and other words of similar meaning, are likely to address the
Company's growth strategy, financial results, and/or product development
programs. Actual results, performance or achievements could differ materially
from those contemplated, expressed or implied by the forward-looking statements
contained herein. The considerations listed herein represent certain
important factors the Company believes could cause such results to differ.
These considerations are not intended to represent a complete list of the
general or specific risks that may affect the Company. It should be
recognized that other risks, including general economic factors and expansion
strategies, may be significant, presently or in the future, and the risks set
forth herein may affect the Company to a greater extent than indicated.
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
No changes
<PAGE>
FORM 10-Q
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 29, 2000.
C. Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K.
December 9, 1999.
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 14, 2000 W. Bernard Lester
Date President
Chief Operating Officer
(Signature)
April 14, 2000 L. Craig Simmons
Date Vice President
Chief Financial Officer
(Signature)
April 14, 2000 Deirdre M. Purvis
Date Controller
(Signature)
<PAGE>
EXHIBIT A
INDEPENDENT ACCOUNTANT'S 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 29, 2000, and the related condensed consolidated
statements of operations for the six-month periods ended February 29, 2000
and February 28, 1999. 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, 1999 and the related consolidated statement of operations, stock-
holders' equity and cash flows for the year then ended (not presented herein);
and in our report dated October 13, 1999 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,
1999, is fairly presented, in all material respects, in relation to the
consolidated balance sheet from which it has been derived.
/s/ KPMG LLP
Orlando, Florida
March 31, 2000
<PAGE>
FORM 10-Q
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of February 29, 2000:
Number of shares outstanding at August 31, 1999 7,027,827
_________
_________
Number of shares outstanding at February 29, 2000 7,027,827
_________
_________
Weighted Average 9/1/99 - 02/29/00 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 29, 2000 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-01-1999
<PERIOD-END> FEB-29-2000
<CASH> 777094
<SECURITIES> 16443333
<RECEIVABLES> 11204979
<ALLOWANCES> 0
<INVENTORY> 15883100
<CURRENT-ASSETS> 44481625
<PP&E> 138275776
<DEPRECIATION> 32821390
<TOTAL-ASSETS> 166969809
<CURRENT-LIABILITIES> 7013237
<BONDS> 0
0
0
<COMMON> 7027827
<OTHER-SE> 91863431
<TOTAL-LIABILITY-AND-EQUITY> 166969809
<SALES> 35240425
<TOTAL-REVENUES> 37586333
<CGS> 19189053
<TOTAL-COSTS> 19189053
<OTHER-EXPENSES> 1321829
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1409556
<INCOME-PRETAX> 15665895
<INCOME-TAX> 5801939
<INCOME-CONTINUING> 9863956
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9863956
<EPS-BASIC> 1.40
<EPS-DILUTED> 1.40
</TABLE>
