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 three months ended November 30, 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 January 12, 2001.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - See Accountants' Review Report)
Three Months Ended November 30,
2000 1999
_______________________________
<S> <C> <C>
Revenue:
Citrus $ 1,095,619 $ 1,702,564
Sugarcane 2,938,210 1,451,140
Ranch 4,799,772 2,986,818
Rock products and sand 421,645 348,840
Oil lease and land rentals 204,740 413,136
Forest products 27,707 33,248
Profit on sales of real estate 195,264 12,859,851
Interest and investment income 501,922 769,672
Other 90,605 0
___________ ___________
Total revenue 10,275,484 20,565,269
___________ ___________
Cost and expenses:
Citrus production, harvesting and
marketing 835,154 1,075,455
Sugarcane production and harvesting 2,236,378 1,422,700
Ranch 4,315,279 2,899,568
Real estate expenses 98,348 380,564
Interest 728,810 632,399
Other, general and administrative 881,374 384,848
____________ ___________
Total costs and expenses 9,095,343 6,795,534
____________ ___________
Income before income taxes 1,180,141 13,769,735
Provision for income taxes 375,397 5,158,364
____________ ___________
Net income 804,744 8,611,371
____________ ___________
____________ ___________
Weighted average number of shares outstanding 7,027,827 7,027,827
____________ ___________
____________ ___________
Per share amounts:
Basic and diluted $ .11 $ 1.23
Dividends $ 1.00 $ .30
<FN>
See accompanying Notes to Condensed Consolidated Financial Statements.
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ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
November 30, 2000 August 31, 2000
(Unaudited)
_________________ _______________
ASSETS
<S> <C> <C>
Current assets:
Cash and cash investments $ 2,057,446 $ 1,796,428
Marketable Securities 17,523,548 18,055,099
Accounts receivable 10,076,584 11,954,721
Mortgage and notes receivable 2,514,851 2,509,034
Inventories 21,229,161 21,915,039
Other current assets 800,814 348,062
____________ ____________
Total current assets 54,202,404 56,578,383
Notes receivable, non-current 7,322,222 7,334,579
Land held for development and sale 7,452,436 7,147,937
Investments 1,156,447 959,252
Property, buildings and equipment 138,664,934 136,822,381
Less: Accumulated depreciation (32,938,708) (31,966,492)
____________ ____________
Total assets $175,859,735 $176,876,040
____________ ____________
____________ ____________
<PAGE>
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(See Accountants' Review Report)
(Continued)
<S> November 30, 2000 August 31, 2000
(Unaudited)
_________________ _______________
<C> <C>
Current liabilities:
Accounts payable $ 1,061,341 $ 2,429,242
Due to profit sharing plan 0 429,784
Accrued ad valorem taxes 17,577 1,780,807
Current portion of notes payable 1,298,890 1,298,890
Accrued expenses 997,329 988,011
Income taxes payable 232,937 4,169,517
Deferred income taxes 1,105,521 1,250,026
____________ ____________
Total current liabilities 4,713,595 12,346,277
Deferred revenue 9,540,000 9,540,000
Notes payable 53,639,433 40,302,855
Deferred income taxes 10,767,775 10,889,095
Deferred retirement benefits 277,017 252,809
____________ ____________
Total liabilities 78,937,820 73,331,036
____________ ____________
STOCKHOLDERS' EQUITY
Common stock $ 7,027,827 $ 7,027,827
Additional paid in capital 104,354 17,885
Accumulated other comprehensive income 672,970 1,159,445
Retained earnings 89,116,764 95,339,847
____________ ____________
Total stockholders' equity 96,921,915 103,545,004
____________ ____________
Total liabilities and
stockholders' equity $175,859,735 $176,876,040
____________ ____________
____________ ____________
<FN>
See accompanying Notes to Condensed Consolidated Financial Statements.
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ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(See Accountants' Review Report)
Accumulated
Common Stock Other Additional
Shares Retained Comprehensive Paid in
Issued Amount Earnings Income Capital Total
_________ __________ _________ _______ __________ ________
<S> <C> <C> <C> <C> <C> <C>
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 year ended
August 31, 2000 - - 14,110,616 - - 14,110,616
Unrealized gains on
securities,
net of taxes and - - - 129,492 - 129,492
reclassification
adjustment
__________
Total comprehensive income: 14,240,108
Dividends paid - - (2,108,348) - - (2,108,348)
Stock based
compensation - - - - $17,885 17,885
_________ __________ ___________ ________ ________ ___________
Balances,
August 31,
2000 7,027,827 $7,027,827 $95,339,847 $1,159,445 $17,885 $103,545,004
_______________
Comprehensive income:
Net income for the
three months ended
November 30, 2000 - - 804,744 - - 804,744
Unrealized gains on
securities,
net of taxes - - - (486,475) - (486,475)
and reclassification adjustment
_________
Total comprehensive income: 318,269
Dividends paid - - (7,027,827) - - (7,027,827)
Stock based
compensation - - - - $86,469 86,469
_________ __________ ___________ ________ ________ ___________
Balances,
November 30, 2000
(Unaudited) 7,027,827 $7,027,827 $89,116,764 $672,970 $104,354 $96,921,915
_________ __________ ___________ ________ ________ __________
_________ __________ ___________ ________ ________ __________
November 30, August 31,
2000 2000
(Unaudited)
Disclosure of reclassification amount: ____________ ___________
Unrealized holding gains (losses)
arising during the period $(444,707) $2,176,940
Less: reclassification adjustment
for gains (losses) included in net
income 41,768 2,047,448
_________ ________
Net unrealized gains (losses) on securities $(486,475) $ 129,492
_________ __________
_________ __________
<FN>
See accompanying Notes to Condensed Consolidated Financial Statements.
ALICO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - See Accountants' Review Report)
Three Months Ended November 30,
2000 1999
<S> _______________________________
Cash flows from operating activities:
<C> <C>
Net income $ 804,744 $8,611,371
Adjustments to reconcile net income to cash
provided from (used for) operating activities:
Depreciation and amortization 1,750,647 1,458,920
Net decrease in current assets and
liabilities (6,180,210) (2,133,048)
Deferred income taxes 27,682 4,312,542
Gain on sales of real estate (96,916) (12,859,851)
Other (383,640) (217,659)
__________ __________
Net cash provided from (used for)
operating activities (4,077,693) (827,725)
__________ __________
Cash flows from (used for) investing activities:
Purchases of property and equipment (2,462,959) (3,850,238)
Proceeds from sales of real estate 210,595 3,971,175
Proceeds from sales of property and equipment 409,800 230,457
Purchases of marketable securities (1,209,992) (443,737)
Proceeds from sales of marketable securities 1,075,976 173,164
__________ __________
Net cash provide from (used for)
investing activities (1,976,580) 80,821
__________ __________
Cash flows from (used for) financing activities:
Notes receivable collections 6,540 (430)
Repayment of bank loan (13,277,249) (9,001,667)
Proceeds from bank loan 26,613,827 11,825,000
Dividends paid (7,027,827) (2,108,348)
__________ __________
Net cash provided from
financing activities 6,315,291 714,555
__________ __________
Net decrease in cash and
cash investments $ 261,018 $ (32,349)
__________ __________
__________ __________
Supplemental disclosures of cash flow information:
Cash paid for interest, net of
amount capitalized $ 749,395 $ 501,111
__________ __________
__________ __________
Cash paid for income taxes $4,284,296 $ 103,817
__________ __________
__________ __________
Non-cash investing and financing activities:
Mortgage and notes receivable issued in exchange
for land, less unamortized discount $ -0- $11,396,574
___________ __________
___________ __________
Fair value adjustments to securities
available for sale $ 779,982 $ 85,588
__________ __________
__________ __________
Income tax effect related to fair
value adjustment $ 293,507 $ 32,554
__________ __________
__________ __________
<FN>
See accompanying Notes to Condensed Consolidated Financial Statements.
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<PAGE>
ALICO, INC. AND SUBSIDIARIES
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 Alico, Inc. and its wholly owned subsidiaries, Saddlebag Lake
Resorts, Inc. (Saddlebag) and Agri-Insurance Company, Ltd. (Agri),
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 November 30, 2000 and August 31, 2000 and the consolidated results
of operations and cash flows for the three months ended November 30, 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 $280,758 in
2000 and $1,839,642 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. Mortgage and notes receivable:
Mortgage and notes receivable arose from real estate sales. The balances at
November 30, 2000 and August 31, 2000 are as follows:
November 30, August 31,
2000 2000
____________ __________
Mortgage notes receivable
on retail land sales $ 201,877 $ 238,417
Mortgage notes receivable
on bulk land sales 9,540,000 9,540,000
Other notes receivable 95,196 65,196
____________ __________
Total mortgage notes receivable $ 9,837,073 $9,843,613
Less current portion 2,514,851 2,509,034
____________ __________
Non-current portion $ 7,322,222 $7,334,579
____________ __________
____________ __________
In July 2000, the Company received a mortgage note in exchange for land sold.
The note totaled $9,540,000 and principal payments of $2,385,000 are due
annually on July 14, bearing interest at the LIBOR, over the next four years.
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4. Inventories:
A summary of the Company's inventories (in thousands) is shown below:
November 30, August 31,
2000 2000
____________ ___________
Unharvested fruit crop on trees $ 11,253,072 $ 9,160,234
Unharvested sugarcane 4,797,383 5,095,514
Beef cattle 4,960,370 7,469,897
Sod 218,336 189,394
____________ ___________
Total inventories $ 21,229,161 $21,915,039
____________ ___________
____________ ___________
Subject to prevailing market conditions, the Company may hedge a portion of
its beef inventory by entering into cattle futures contracts to reduce
exposure to changes in market prices. Any gains or losses anticipated under
these agreements were deferred, with the cost of the related cattle being
adjusted when the contracts are settled. Effective September 1, 2000, gains
and losses under these agreements are recognized as incurred in
accordance with SFAS 133, as further discussed in Note 9.
5. Income taxes:
The provision for income taxes for the quarters ended November 30, 2000 and
1999 is summarized as follows:
Three Months Ended November 30,
2000 1999
_______________________________
<S> <C> <C>
Current:
Federal income tax $ 552,774 $ 692,482
State income tax 88,449 120,786
__________ __________
641,223 813,268
__________ __________
Deferred:
Federal income tax (226 973) 3,710,017
State income tax (38,853) 635,079
__________ __________
(265,826) 4,345,096
__________ __________
Total provision for
income taxes $ 375,397 $5,158,364
__________ __________
__________ __________
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 ended November 30, 2000 and 1999:
Three Months Ended November 30,
2000 1999
_______________________________
<S> <C> <C>
Expected income tax $ 401,248 $4,681,709
Increase (decrease) resulting
from:
State income taxes, net
of federal benefit 32,173 498,179
Nontaxable interest and
dividends (32,420) (26,736)
Other reconciling items,
net (25,604) 5,212
__________ __________
Total provision for
income taxes $ 375,397 $5,158,364
__________ __________
__________ __________
<PAGE>
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 2002 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 November 30, 2000 and August 31, 2000 was $53,639,433 and
$40,302,855, respectively.
Maturities of the indebtedness of the Company over the next five years are as
follows: 2001- $1,298,890; 2002- $38,301,146; 2003- $1,303,559;
2004- $1,306,142; 2005- $1,308,905; thereafter $11,419,681.
Interest cost expensed and capitalized during the three months ended
November 30, 2000 and 1999 was as follows:
2000 1999
________ ________
Interest expensed $728,810 $632,399
Interest capitalized 53,930 95,473
________ ________
Total interest cost $782,740 $727,872
________ ________
________ ________
7. Dividends:
On October 3, 2000 the Company declared a year-end dividend of $1.00 per
share, which was paid on October 27, 2000.
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 three months ended November 30, 2000:
____________________________________________________________
General Consolidated
Citrus Sugarcane Ranch Corporate* Total
____________________________________________________________
Revenue $ 1,095,619 2,938,210 4,799,772 1,441,883 10,275,484
Costs and
expenses 835,154 2,236,378 4,315,279 1,708,532 9,095,343
Depreciation and
amortization 610,453 652,679 356,917 130,598 1,750,647
Segment profit 260,465 701,832 484,493 (266,649) 1,180,141
Segment assets 54,259,074 52,036,655 20,930,064 48,633,942 175,859,735
The following table presents information for each of the Company's
operating segments as of and for the three months ended November 30, 1999:
____________________________________________________________
General Consolidated
Citrus Sugarcane Ranch Corporate* Total
____________________________________________________________
Revenue $ 1,702,564 1,451,140 2,986,818 14,424,747 20,565,269
Costs and
expenses 1,075,455 1,422,700 2,899,568 1,397,811 6,795,534
Depreciation and
amortization 603,876 492,292 240,062 122,690 1,458,920
Segment profit 627,109 28,440 87,250 13,026,936 13,769,735
Segment assets 39,387,876 42,368,444 13,474,271 72,284,841 167,515,432
*Consists of rents, investments, real estate activities and other such
items of a general corporate nature.
9. Adoption of Accounting Standard
As of September 1, 2000, the Company adopted Statements of Financial
Accounting Standards No. 133 (SFAS 133), "Accounting for Derivative
instruments and Hedging Activities" as amended by SFAS 137 and 138.
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. Upon adoption, the
Company's management decided not to designate any of its derivative
instruments as hedge transactions and, accordingly, the changes in
fair value of derivatives are recorded each period in current
operations.
At September 1, 2000, the fair value of these derivatives was equal
to a gain of $41,620. This adjustment was recorded against operations
as of September 1, 2000, as a cumulative adjustment of a change in
accounting principle, net of income taxes of $15,662, or $25,958
after-tax.
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 vesting schedules which are at the discretion of the
Board of Directors and determined on the effective date of the grant.
Weighted
Weighted average
average remaining
exercise contractual
Shares price Life (in years)
_______ _________ _______________
Balance outstanding,
August 31, 1998 - - -
Granted 34,700 $14.62 _______________
_______ _________ _______________
Balance outstanding,
August 31, 1999 34,700 14.62 11
_______________
Granted 14,992 14.62 _______________
_______ _________
Balance outstanding,
August 31, 2000 49,692 14.62 10
_______________
Granted 51,074 14.62 _______________
_______ _________
Balance outstanding,
November 30, 2000 100,766 14.62
_______ _________
_______ _________
On November 30, 2000, there were 49,692 shares exercisable and 549,234
shares available for grant.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
LIQUIDITY AND CAPITAL RESOURCES:
Working capital increased to $49,488,809 at November 30, 2000, up from
$44,232,006 at August 31, 2000. As of November 30, 2000, the Company
had cash and cash investments of $2,057,446 compared to $1,796,428 at
August 31, 2000. Marketable securities decreased from $18,055,099 to
$17,523,548 during the same period. The ratio of current assets to
current liabilities increased to 11.5 to 1 at November 30, 2000 from
4.58 to 1 at August 31, 2000. Total assets decreased by $1,016,305
to $175,859,735 at November 30, 2000 from $176,876,040 at August
31, 2000.
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
$6.3 million at November 30, 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 November 30, 2000 decreased by
$7,806,627 when compared to the first quarter of fiscal 2000. Income
before income taxes decreased $12,589,594 for the three months ended
November 30, 2000, when compared to the same period a year ago. This
was primarily due to the decrease in earnings from real estate activities
($96,916 for the three months ended November 30, 2000 compared to
$12,479,287 for the three months ended November 30, 1999).
Earnings from agricultural activities increased during the first quarter
of fiscal 2001 ($1,446,790 vs. $742,799 during the first three months
of fiscal 2001 and 2000, respectively).
Citrus
______
Citrus earnings decreased for the quarter ended November 30, 2000, when
compared to the prior year ($260,465 during the first quarter of fiscal
2001 vs. $627,109 during the same period in fiscal 2000). This is largely
the result of the recognition of revenue from the fiscal 1999 fresh fruit
crop which was greater than the comparable amount realized in the first
quarter of the current year ($280,758 in the first quarter of fiscal
2001, compared to $758,750 in the first quarter of fiscal 2000, see
Note 1 to the Notes to Condensed Consolidated Financial Statements).
Sugarcane
_________
Sugarcane earnings increased during the first quarter of 2001 ($701,832
during fiscal 2001 vs. $28,440 during fiscal 2000) when compared to the
prior year. Producing acres have increased and, as a result, more acres
are being harvested. Improved yields and market prices have also
contributed to the rise.
Ranching
________
Ranch earnings also increased when compared to a year ago ($484,493 vs.
$87,250 for the three months ended November 30, 2000 and November 30, 1999,
respectively). Increased market prices for beef are the primary cause of
the improvement.
General Corporate
_________________
The Company is continuing its marketing and permitting activities for its
land which surrounds the Florida Gulf Coast University site.
The Company announced the formation of Agri-Insurance Company, Ltd. (Agri)
a wholly owned subsidiary, during July of 2000. The insurance company has
been capitalized by transferring cash and approximately 6,000 acres of
the Lee County property along with the sales contracts, referred to below.
Through Agri, the Company expects to be able to underwrite previously
uninsurable risk related to catastrophic crop and other losses.
Additionally, the insurance company will have access to reinsurance
markets, otherwise inaccessible. While Agri underwrote a small policy
during August of 2000, it is expected to begin writing more significant
coverages before the end of fiscal 2001.
In December of 1999, the Company entered into a contract to sell
approximately 2,500 acres for $50 million to Naples/Dallas Venture, Inc.
The agreement calls for closings to occur on 250 acres per year for 10
years. The first closing is expected during fiscal 2001.
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. In August of 2000, Agri sold another 488 acres to
Miromar, also near the University, for $10.6 million. In connection
with the sale, Miromar agreed to pay off the $12.3 million mortgage
related to the September 1999 sale and pay 10% of the contract
price for their second purchase at closing. The balance is payable over
the next four years. The first sale generated a pre-tax gain of $13.4
million. The gain related to the second sale has only been recognized
to the extent that 10% of the purchase price has been collected net of
closing costs ($959 thousand). The remainder of the gain and related
mortgage will be recognized upon receipt of 20% of the contract price.
This is expected to occur during August of 2001.
In July of 1999, the Company entered into a contract to sell up to 402
acres near the University to Thomas B. Garlick, a Trustee of Florida
Land Trust 996 for approximately $15.5 million. The contract was
subsequently renegotiated, as provided for in the original agreement,
and calls for the sale of 44 acres for $5 million.
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 effect 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
November 30, 2000.
C. Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K.
November 3, 2000
December 7, 2000
December 14, 2000
December 18, 2000
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)
January 12, 2001 W. Bernard Lester
Date President
Chief Operating Officer
(Signature)
January 12, 2001 L. Craig Simmons
Date Vice President
Chief Financial Officer
(Signature)
January 12, 2001 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 subsidiaries as of November 30, 2000, and the related condensed
consolidated statements of operations for the three month periods
ended November 30, 2000 and 1999, the condensed consolidated statements
of stockholders' equity for the three month period November 30, 2000,
and the condensed consolidated statements of cash flows for the three
month periods ended November 30, 2000 and 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 subsidiaries as
of August 31, 2000 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 12, 2000 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, 2000, is fairly presented,
in all material respects, in relation to the consolidated balance sheet
from which it has been derived.
s/s KPMG LLP
Orlando, Florida
January 4, 2001
<PAGE>
FORM 10-Q
ALICO, INC.
Computation of Weighted Average Shares Outstanding as of November 30, 2000:
Number of shares outstanding at August 31, 2000 7,027,827
_________
_________
Number of shares outstanding at November 30, 2000 7,027,827
_________
_________
Weighted Average 9/1/00 - 11/30/00 7,027,827
_________
_________
EXHIBIT B
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</TABLE>
