þ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||
For the Quarterly Period Ended June 30, 2018 | |||
or |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||
For the transition period | ||||
from____________________ | to_________________________ |
Alico, Inc. |
(Exact name of registrant as specified in its charter) |
Florida | 59-0906081 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
10070 Daniels Interstate Court, | ||
Suite 100, Fort Myers, FL | 33913 | |
(Address of principal executive offices) | (Zip Code) |
239-226-2000 |
(Registrant’s telephone number, including area code) |
Large accelerated filer | ¨ | Accelerated filer | þ |
Non-accelerated filer | ¨ | Smaller Reporting Company | ¨ |
Emerging Growth Company | ¨ |
Page | |
ALICO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) | ||||||||
June 30, | September 30, | |||||||
2018 | 2017 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 26,553 | $ | 3,395 | ||||
Accounts receivable, net | 8,796 | 4,286 | ||||||
Inventories | 29,726 | 36,204 | ||||||
Assets held for sale | 10,295 | 20,983 | ||||||
Prepaid expenses and other current assets | 2,558 | 1,621 | ||||||
Total current assets | 77,928 | 66,489 | ||||||
Property and equipment, net | 337,235 | 349,337 | ||||||
Goodwill | 2,246 | 2,246 | ||||||
Deferred financing costs, net of accumulated amortization | 198 | 262 | ||||||
Other non-current assets | 1,009 | 848 | ||||||
Total assets | $ | 418,616 | $ | 419,182 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,061 | $ | 3,192 | ||||
Accrued liabilities | 6,348 | 6,781 | ||||||
Long-term debt, current portion | 5,250 | 4,550 | ||||||
Other current liabilities | 856 | 1,460 | ||||||
Total current liabilities | 15,515 | 15,983 | ||||||
Long-term debt: | ||||||||
Principal amount, net of current portion | 171,805 | 181,926 | ||||||
Less: deferred financing costs, net | (1,613 | ) | (1,767 | ) | ||||
Long-term debt less current portion and deferred financing costs, net | 170,192 | 180,159 | ||||||
Deferred income tax liabilities | 27,757 | 27,108 | ||||||
Deferred gain on sale | 24,788 | 26,440 | ||||||
Deferred retirement obligations | 4,053 | 4,123 | ||||||
Total liabilities | 242,305 | 253,813 | ||||||
Commitments and Contingencies (Note 11) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 and 8,416,145 shares issued and 8,192,398 and 8,238,830 shares outstanding at June 30, 2018 and September 30, 2017, respectively | 8,416 | 8,416 | ||||||
Additional paid in capital | 19,168 | 18,694 | ||||||
Treasury stock, at cost, 223,747 and 177,315 shares held at June 30, 2018 and September 30, 2017, respectively | (7,854 | ) | (6,502 | ) | ||||
Retained earnings | 150,885 | 140,033 | ||||||
Total Alico stockholders' equity | 170,615 | 160,641 | ||||||
Noncontrolling interest | 5,696 | 4,728 | ||||||
Total stockholders' equity | 176,311 | 165,369 | ||||||
Total liabilities and stockholders' equity | $ | 418,616 | $ | 419,182 |
ALICO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Operating revenues: | ||||||||||||||||
Alico Citrus | $ | 25,711 | $ | 49,993 | $ | 77,499 | $ | 122,537 | ||||||||
Conservation and Environmental Resources | 544 | 1,151 | 1,400 | 1,789 | ||||||||||||
Other Operations | 262 | 374 | 751 | 837 | ||||||||||||
Total operating revenues | 26,517 | 51,518 | 79,650 | 125,163 | ||||||||||||
Operating expenses: | ||||||||||||||||
Alico Citrus | 13,697 | 35,059 | 56,102 | 90,067 | ||||||||||||
Conservation and Environmental Resources | 864 | 1,451 | 3,054 | 2,726 | ||||||||||||
Other Operations | 42 | — | 165 | 93 | ||||||||||||
Total operating expenses | 14,603 | 36,510 | 59,321 | 92,886 | ||||||||||||
Gross profit | 11,914 | 15,008 | 20,329 | 32,277 | ||||||||||||
General and administrative expenses | 2,955 | 3,709 | 9,914 | 10,896 | ||||||||||||
Income from operations | 8,959 | 11,299 | 10,415 | 21,381 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Interest expense | (2,188 | ) | (2,223 | ) | (6,682 | ) | (6,924 | ) | ||||||||
Gain on sale of real estate, property and equipment and assets held for sale | 7,248 | 157 | 9,083 | 1,989 | ||||||||||||
Other income (expense), net | 14 | (96 | ) | 158 | (120 | ) | ||||||||||
Total other (expense) income, net | 5,074 | (2,162 | ) | 2,559 | (5,055 | ) | ||||||||||
Income before income taxes | 14,033 | 9,137 | 12,974 | 16,326 | ||||||||||||
Provision for income taxes | 4,941 | 3,665 | 674 | 6,713 | ||||||||||||
Net income | 9,092 | 5,472 | 12,300 | 9,613 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 8 | 7 | 32 | (36 | ) | |||||||||||
Net income attributable to Alico, Inc. common stockholders | $ | 9,100 | $ | 5,479 | $ | 12,332 | $ | 9,577 | ||||||||
Per share information attributable to Alico, Inc. common stockholders: | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.11 | $ | 0.66 | $ | 1.50 | $ | 1.15 | ||||||||
Diluted | $ | 1.09 | $ | 0.66 | $ | 1.48 | $ | 1.15 | ||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||
Basic | 8,228 | 8,293 | 8,243 | 8,315 | ||||||||||||
Diluted | 8,324 | 8,364 | 8,314 | 8,340 | ||||||||||||
Cash dividends declared per common share | $ | 0.06 | $ | 0.06 | $ | 0.18 | $ | 0.18 |
ALICO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | ||||||||
Nine Months Ended June 30, | ||||||||
2018 | 2017 | |||||||
Net cash provided by operating activities: | ||||||||
Net income | $ | 12,300 | $ | 9,613 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Deferred gain on sale of sugarcane land | (767 | ) | (422 | ) | ||||
Depreciation, depletion and amortization | 10,327 | 11,529 | ||||||
Deferred income tax provision | 649 | 4,437 | ||||||
Gain on sale of real estate, property and equipment and assets held for sale | (8,315 | ) | (1,338 | ) | ||||
Impairment of long-lived assets | 1,855 | — | ||||||
Non-cash interest expense on deferred gain on sugarcane land | 1,021 | 1,060 | ||||||
Stock-based compensation expense | 1,337 | 1,230 | ||||||
Other | (285 | ) | 145 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (4,510 | ) | (7,104 | ) | ||||
Inventories | 6,478 | 17,350 | ||||||
Prepaid expenses and other assets | (892 | ) | (621 | ) | ||||
Accounts payable and accrued expenses | (594 | ) | (6,826 | ) | ||||
Income tax payable | — | 1,539 | ||||||
Other liabilities | (2,485 | ) | (1,692 | ) | ||||
Net cash provided by operating activities | 16,119 | 28,900 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (12,129 | ) | (11,450 | ) | ||||
Net proceeds from sale of property and equipment and assets held for sale | 31,671 | 3,016 | ||||||
Notes receivable | (379 | ) | — | |||||
Other | — | 155 | ||||||
Net cash provided by (used in) investing activities | 19,163 | (8,279 | ) | |||||
Cash flows from financing activities: | ||||||||
Repayments on revolving lines of credit | (21,424 | ) | (70,770 | ) | ||||
Borrowings on revolving lines of credit | 21,424 | 65,770 | ||||||
Principal payments on term loans | (9,421 | ) | (8,061 | ) | ||||
Treasury stock purchases | (2,215 | ) | (2,174 | ) | ||||
Dividends paid | (1,480 | ) | (1,496 | ) | ||||
Capital contribution received from noncontrolling interest | 1,000 | — | ||||||
Capital lease obligation payments | (8 | ) | (571 | ) | ||||
Net cash used in financing activities | (12,124 | ) | (17,302 | ) | ||||
Net increase in cash and cash equivalents | 23,158 | 3,319 | ||||||
Cash and cash equivalents at beginning of the period | 3,395 | 6,625 | ||||||
Cash and cash equivalents at end of the period | $ | 26,553 | $ | 9,944 |
(in thousands) | June 30, | September 30, | |||||
2018 | 2017 | ||||||
Unharvested fruit crop on the trees | $ | 27,724 | $ | 32,145 | |||
Beef cattle | — | 1,954 | |||||
Other | 2,002 | 2,105 | |||||
Total inventories | $ | 29,726 | $ | 36,204 |
(in thousands) | Carrying Value | ||||||
June 30, | September 30, | ||||||
2018 | 2017 | ||||||
Office Building | $ | — | $ | 3,214 | |||
Nursery - Gainesville | — | 6,500 | |||||
Chancey Bay (Citrus Grove) | — | 4,179 | |||||
Gal Hog | — | 70 | |||||
Breeding Herd | — | 5,858 | |||||
Trailers | 637 | 1,162 | |||||
Island Pond (Citrus Grove) | 5,878 | — | |||||
Rawle (Citrus Grove) | 3,680 | — | |||||
Parcels on East Ranch | 100 | — | |||||
Total Assets Held For Sale | $ | 10,295 | $ | 20,983 |
(in thousands) | June 30, | September 30, | |||||
2018 | 2017 | ||||||
Citrus trees | $ | 258,924 | $ | 258,949 | |||
Equipment and other facilities | 52,491 | 54,592 | |||||
Buildings and improvements | 8,040 | 8,835 | |||||
Total depreciable properties | 319,455 | 322,376 | |||||
Less: accumulated depreciation and depletion | (87,670 | ) | (82,443 | ) | |||
Net depreciable properties | 231,785 | 239,933 | |||||
Land and land improvements | 105,450 | 109,404 | |||||
Net property and equipment | $ | 337,235 | $ | 349,337 |
June 30, 2018 | September 30, 2017 | ||||||||||||||
Principal | Deferred Financing Costs, Net | Principal | Deferred Financing Costs, Net | ||||||||||||
(in thousands) | |||||||||||||||
Long-term debt, net of current portion: | |||||||||||||||
Met Fixed-Rate Term Loans | $ | 97,500 | $ | 865 | $ | 99,062 | $ | 954 | |||||||
Met Variable-Rate Term Loans | 47,438 | 398 | 49,594 | 439 | |||||||||||
Met Citree Term Loan | 4,950 | 45 | 5,000 | 49 | |||||||||||
Pru Loans A & B | 17,707 | 245 | 23,030 | 258 | |||||||||||
Pru Loan E | 4,730 | 19 | 4,895 | 25 | |||||||||||
Pru Loan F | 4,730 | 41 | 4,895 | 42 | |||||||||||
177,055 | 1,613 | 186,476 | 1,767 | ||||||||||||
Less current portion | 5,250 | — | 4,550 | — | |||||||||||
Long-term debt | $ | 171,805 | $ | 1,613 | $ | 181,926 | $ | 1,767 |
June 30, 2018 | September 30, 2017 | ||||||||||||||
Principal | Deferred Financing Costs, Net | Principal | Deferred Financing Costs, Net | ||||||||||||
(in thousands) | |||||||||||||||
Lines of Credit: | |||||||||||||||
RLOC | $ | — | $ | 71 | $ | — | $ | 109 | |||||||
WCLC | — | 127 | — | 153 | |||||||||||
Lines of Credit | $ | — | $ | 198 | $ | — | $ | 262 |
(in thousands) | |||
Due within one year | $ | 5,250 | |
Due between one and two years | 10,950 | ||
Due between two and three years | 10,975 | ||
Due between three and four years | 14,825 | ||
Due between four and five years | 10,755 | ||
Due beyond five years | 124,300 | ||
Total future maturities | $ | 177,055 |
(in thousands) | |||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest expense | $ | 2,188 | $ | 2,223 | $ | 6,682 | $ | 6,924 | |||||||
Interest capitalized | 166 | 74 | 447 | 201 | |||||||||||
Total | $ | 2,354 | $ | 2,297 | $ | 7,129 | $ | 7,125 |
(in thousands) | June 30, | September 30, | |||||
2018 | 2017 | ||||||
Ad valorem taxes | $ | 1,482 | $ | 2,648 | |||
Accrued interest | 1,185 | 1,165 | |||||
Accrued employee wages and benefits | 2,197 | 1,320 | |||||
Accrued dividends | 491 | 494 | |||||
Current portion of deferred retirement obligations | 345 | 315 | |||||
Accrued insurance | 92 | 166 | |||||
Other accrued liabilities | 556 | 673 | |||||
Total accrued liabilities | $ | 6,348 | $ | 6,781 |
(in thousands except per share amounts) | |||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income attributable to Alico, Inc. common stockholders | $ | 9,100 | $ | 5,479 | $ | 12,332 | $ | 9,577 | |||||||
Weighted average number of common shares outstanding - basic | 8,228 | 8,293 | 8,243 | 8,315 | |||||||||||
Dilutive effect of equity-based awards | 96 | 71 | 71 | 25 | |||||||||||
Weighted average number of common shares outstanding - diluted | 8,324 | 8,364 | 8,314 | 8,340 | |||||||||||
Net income per common shares attributable to Alico, Inc. common stockholders: | |||||||||||||||
Basic | $ | 1.11 | $ | 0.66 | $ | 1.50 | $ | 1.15 | |||||||
Diluted | $ | 1.09 | $ | 0.66 | $ | 1.48 | $ | 1.15 |
(in thousands) | Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Alico Citrus | $ | 25,711 | $ | 49,993 | $ | 77,499 | $ | 122,537 | |||||||
Conservation and Environmental Resources | 544 | 1,151 | 1,400 | 1,789 | |||||||||||
Other Operations | 262 | 374 | 751 | 837 | |||||||||||
Total revenues | 26,517 | 51,518 | 79,650 | 125,163 | |||||||||||
Operating expenses: | |||||||||||||||
Alico Citrus | 13,697 | 35,059 | 56,102 | 90,067 | |||||||||||
Conservation and Environmental Resources | 864 | 1,451 | 3,054 | 2,726 | |||||||||||
Other Operations | 42 | — | 165 | 93 | |||||||||||
Total operating expenses | 14,603 | 36,510 | 59,321 | 92,886 | |||||||||||
Gross profit (loss): | |||||||||||||||
Alico Citrus | 12,014 | 14,934 | 21,397 | 32,470 | |||||||||||
Conservation and Environmental Resources | (320 | ) | (300 | ) | (1,654 | ) | (937 | ) | |||||||
Other Operations | 220 | 374 | 586 | 744 | |||||||||||
Total gross profit | $ | 11,914 | $ | 15,008 | $ | 20,329 | $ | 32,277 | |||||||
Depreciation, depletion and amortization: | |||||||||||||||
Alico Citrus | $ | 3,342 | $ | 3,508 | $ | 10,106 | $ | 10,529 | |||||||
Conservation and Environmental Resources | 29 | 150 | 119 | 469 | |||||||||||
Other Operations | 15 | 3 | 42 | 66 | |||||||||||
Other Depreciation, Depletion and Amortization | 19 | 72 | 60 | 465 | |||||||||||
Total depreciation, depletion and amortization | $ | 3,405 | $ | 3,733 | $ | 10,327 | $ | 11,529 |
(in thousands) | June 30, | September 30, | |||||
2018 | 2017 | ||||||
Assets: | |||||||
Alico Citrus | $ | 400,596 | $ | 387,972 | |||
Conservation and Environmental Resources | 5,299 | 13,845 | |||||
Other Operations | 10,695 | 10,974 | |||||
Other Corporate Assets | 2,026 | 6,391 | |||||
Total Assets | $ | 418,616 | $ | 419,182 |
Expected Volatility | 32.19 | % |
Expected Term (in years) | 2.6 - 4.0 | |
Risk Free Rate | 24.5 | % |
(in thousands, except share amounts) | ||||||
Shares | Cost | |||||
Balance as of September 30, 2017 | 177,315 | $ | 6,502 | |||
Purchased | 72,266 | 2,215 | ||||
Issued to employees and directors | (25,834 | ) | (863 | ) | ||
Balance as of June 30, 2018 | 223,747 | $ | 7,854 |
• | Alico Citrus includes activities related to planting, owning, cultivating and/or managing citrus groves in order to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit and value-added services, which include contracting for the harvesting, marketing and hauling of citrus; |
• | Conservation and Environmental Resources includes activities related to sod, native plant sales, leasing, management and/or conservation of unimproved native pasture land; and |
• | Other Operations consists of activities related to rock mining royalties and other insignificant lines of business. Also included are activities related to owning and/or leasing improved farmland. Improved farmland is acreage that has been converted, or is permitted to be converted, from native pasture and which may have various improvements including irrigation, drainage and roads. |
• | sold its Gal Hog property for approximately $7,300,000; |
• | sold its property at Chancey Bay for approximately $4,200,000. As part of the transaction, the Company agreed to pay the purchaser rent of $200,000 in exchange for Alico retaining the rights of harvesting and selling of the fruit in the 2017/2018 harvest season; |
• | sold its Nursery located in Gainesville for approximately $6,500,000. The Company continues to operate a nursery in its Joshua location; |
• | sold its breeding herd to a third party for approximately $7,800,000. As part of this transaction, the purchaser is also leasing grazing and other rights on the Alico Ranch from the Company at a rate of $100,000 per month; and |
• | sold its corporate office building in Fort Myers, Florida for $5,300,000. The sales agreement provides that the Company will lease back a portion of the office space for five years. |
(in thousands) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
June 30, | Change | June 30, | Change | ||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | ||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||
Alico Citrus | $ | 25,711 | $ | 49,993 | $ | (24,282 | ) | (48.6 | )% | $ | 77,499 | $ | 122,537 | $ | (45,038 | ) | (36.8 | )% | |||||||||||
Conservation and Environmental Resources | 544 | 1,151 | (607 | ) | (52.7 | )% | 1,400 | 1,789 | (389 | ) | (21.7 | )% | |||||||||||||||||
Other Operations | 262 | 374 | (112 | ) | (29.9 | )% | 751 | 837 | (86 | ) | (10.3 | )% | |||||||||||||||||
Total operating revenues | 26,517 | 51,518 | (25,001 | ) | (48.5 | )% | 79,650 | 125,163 | (45,513 | ) | (36.4 | )% | |||||||||||||||||
Gross profit (loss): | |||||||||||||||||||||||||||||
Alico Citrus | 12,014 | 14,934 | (2,920 | ) | (19.6 | )% | 21,397 | 32,470 | (11,073 | ) | (34.1 | )% | |||||||||||||||||
Conservation and Environmental Resources | (320 | ) | (300 | ) | (20 | ) | 6.7 | % | (1,654 | ) | (937 | ) | (717 | ) | 76.5 | % | |||||||||||||
Other Operations | 220 | 374 | (154 | ) | (41.2 | )% | 586 | 744 | (158 | ) | (21.2 | )% | |||||||||||||||||
Total gross profit | 11,914 | 15,008 | (3,094 | ) | (20.6 | )% | 20,329 | 32,277 | (11,948 | ) | (37.0 | )% | |||||||||||||||||
General and administrative expenses | 2,955 | 3,709 | (754 | ) | (20.3 | )% | 9,914 | 10,896 | (982 | ) | (9.0 | )% | |||||||||||||||||
Income from operations | 8,959 | 11,299 | (2,340 | ) | (20.7 | )% | 10,415 | 21,381 | (10,966 | ) | (51.3 | )% | |||||||||||||||||
Total other (expense) income, net | 5,074 | (2,162 | ) | 7,236 | NM | 2,559 | (5,055 | ) | 7,614 | NM | |||||||||||||||||||
Income before income taxes | 14,033 | 9,137 | 4,896 | 53.6 | % | 12,974 | 16,326 | (3,352 | ) | (20.5 | )% | ||||||||||||||||||
Provision for income taxes | 4,941 | 3,665 | 1,276 | 34.8 | % | 674 | 6,713 | (6,039 | ) | (90.0 | )% | ||||||||||||||||||
Net income | 9,092 | 5,472 | 3,620 | 66.2 | % | 12,300 | 9,613 | 2,687 | 28.0 | % | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 8 | 7 | 1 | 14.3 | % | 32 | (36 | ) | 68 | NM | |||||||||||||||||||
Net income attributable to Alico, Inc. common stockholders | $ | 9,100 | $ | 5,479 | $ | 3,621 | 66.1 | % | $ | 12,332 | $ | 9,577 | $ | 2,755 | 28.8 | % |
(in thousands, except per pound solids per box data) | |||||||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||
2018 | 2017 | Unit | % | 2018 | 2017 | Unit | % | ||||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||||||||
Early and Mid-Season | $ | 53 | $ | 222 | $ | (169 | ) | (76.1 | )% | $ | 24,309 | $ | 45,917 | $ | (21,608 | ) | (47.1 | )% | |||||||||||
Valencias | 24,257 | 46,728 | (22,471 | ) | (48.1 | )% | 48,855 | 67,045 | (18,190 | ) | (27.1 | )% | |||||||||||||||||
Fresh Fruit | 540 | 1,356 | (816 | ) | (60.2 | )% | 2,046 | 5,735 | (3,689 | ) | (64.3 | )% | |||||||||||||||||
Purchase and Resale of Fruit | 310 | 1,004 | (694 | ) | (69.1 | )% | 809 | 2,033 | (1,224 | ) | (60.2 | )% | |||||||||||||||||
Other | 551 | 683 | (132 | ) | (19.3 | )% | 1,480 | 1,807 | (327 | ) | (18.1 | )% | |||||||||||||||||
Total | $ | 25,711 | $ | 49,993 | $ | (24,282 | ) | (48.6 | )% | $ | 77,499 | $ | 122,537 | $ | (45,038 | ) | (36.8 | )% | |||||||||||
Boxes Harvested: | |||||||||||||||||||||||||||||
Early and Mid-Season | — | — | — | NM | 1,811 | 3,215 | (1,404 | ) | (43.7 | )% | |||||||||||||||||||
Valencias | 1,421 | 2,819 | (1,398 | ) | (49.6 | )% | 2,891 | 4,044 | (1,153 | ) | (28.5 | )% | |||||||||||||||||
Total Processed | 1,421 | 2,819 | (1,398 | ) | (49.6 | )% | 4,702 | 7,259 | (2,557 | ) | (35.2 | )% | |||||||||||||||||
Fresh Fruit | 27 | 84 | (57 | ) | (67.9 | )% | 124 | 328 | (204 | ) | (62.2 | )% | |||||||||||||||||
Total | 1,448 | 2,903 | (1,455 | ) | (50.1 | )% | 4,826 | 7,587 | (2,761 | ) | (36.4 | )% | |||||||||||||||||
Pound Solids Produced: | |||||||||||||||||||||||||||||
Early and Mid-Season | NM | NM | NM | NM | 9,194 | 17,950 | (8,756 | ) | (48.8 | )% | |||||||||||||||||||
Valencias | 8,668 | 17,194 | (8,526 | ) | (49.6 | )% | 17,319 | 24,661 | (7,342 | ) | (29.8 | )% | |||||||||||||||||
Total | 8,668 | 17,194 | (8,526 | ) | (49.6 | )% | 26,513 | 42,611 | (16,098 | ) | (37.8 | )% | |||||||||||||||||
Pound Solids per Box: | |||||||||||||||||||||||||||||
Early and Mid-Season | NM | NM | NM | NM | 5.07 | 5.58 | (0.51 | ) | (9.1 | )% | |||||||||||||||||||
Valencias | 6.10 | 6.10 | — | — | % | 5.99 | 6.10 | (0.11 | ) | (1.8 | )% | ||||||||||||||||||
Price per Pound Solids: | |||||||||||||||||||||||||||||
Early and Mid-Season | NM | NM | NM | NM | $ | 2.64 | $ | 2.56 | $ | 0.08 | 3.1 | % | |||||||||||||||||
Valencias | $ | 2.80 | $ | 2.72 | $ | 0.08 | 2.9 | % | $ | 2.82 | $ | 2.72 | $ | 0.10 | 3.7 | % | |||||||||||||
Price per Box: | |||||||||||||||||||||||||||||
Fresh Fruit | $ | 19.85 | $ | 16.14 | $ | 3.71 | 23.0 | % | $ | 16.47 | $ | 17.48 | $ | (1.01 | ) | (5.8 | )% | ||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||||
Cost of Sales | $ | 13,882 | $ | 24,158 | $ | (10,276 | ) | (42.5 | )% | $ | 45,823 | $ | 62,694 | $ | (16,871 | ) | (26.9 | )% | |||||||||||
Fresh Fruit Packaging | — | — | — | NM | — | 1,142 | (1,142 | ) | (100.0 | )% | |||||||||||||||||||
Harvesting and Hauling | 3,725 | 7,909 | (4,184 | ) | (52.9 | )% | 12,933 | 21,410 | (8,477 | ) | (39.6 | )% | |||||||||||||||||
Purchase and Resale of Fruit | 193 | 905 | (712 | ) | (78.7 | )% | 562 | 1,864 | (1,302 | ) | (69.8 | )% | |||||||||||||||||
Other | (4,103 | ) | 2,087 | (6,190 | ) | NM | (3,216 | ) | 2,957 | (6,173 | ) | NM | |||||||||||||||||
Total | $ | 13,697 | $ | 35,059 | $ | (21,362 | ) | (60.9 | )% | $ | 56,102 | $ | 90,067 | $ | (33,965 | ) | (37.7 | )% |
(in thousands, except per pound data) | |||||||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||
2018 | 2017 | Unit | % | 2018 | 2017 | Unit | % | ||||||||||||||||||||||
Revenue From: | |||||||||||||||||||||||||||||
Sale of Calves | $ | — | $ | 381 | $ | (381 | ) | NM | $ | 57 | $ | 401 | $ | (344 | ) | (85.8 | )% | ||||||||||||
Sale of Culls | — | 601 | (601 | ) | NM | — | 625 | (625 | ) | NM | |||||||||||||||||||
Land Leasing | 536 | 19 | 517 | NM | 1,248 | 474 | 774 | 163.3 | % | ||||||||||||||||||||
Other | 8 | 150 | (142 | ) | (94.7 | )% | 95 | 289 | (194 | ) | (67.1 | )% | |||||||||||||||||
Total | $ | 544 | $ | 1,151 | $ | (607 | ) | (52.7 | )% | $ | 1,400 | $ | 1,789 | $ | (389 | ) | (21.7 | )% | |||||||||||
Pounds Sold: | |||||||||||||||||||||||||||||
Calves | — | 225 | (225 | ) | NM | 49 | 241 | (192 | ) | (79.7 | )% | ||||||||||||||||||
Culls | — | 919 | (919 | ) | NM | — | 964 | (964 | ) | NM | |||||||||||||||||||
Price Per Pound: | |||||||||||||||||||||||||||||
Calves | $ | — | $ | 1.69 | $ | (1.69 | ) | NM | $ | 1.17 | $ | 1.66 | $ | (0.49 | ) | (29.5 | )% | ||||||||||||
Culls | $ | — | $ | 0.65 | $ | (0.65 | ) | NM | $ | — | $ | 0.65 | $ | (0.65 | ) | NM | |||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||||
Cost of Calves Sold | $ | — | $ | 416 | $ | (416 | ) | NM | $ | 1,015 | $ | 440 | $ | 575 | 130.7 | % | |||||||||||||
Cost of Culls Sold | — | 543 | (543 | ) | NM | — | 572 | (572 | ) | NM | |||||||||||||||||||
Land Leasing Expenses | 253 | 119 | 134 | 112.6 | % | 563 | 208 | 355 | 170.7 | % | |||||||||||||||||||
Water Conservation | 496 | 373 | 123 | 33.0 | % | 1,263 | 1,475 | (212 | ) | (14.4 | )% | ||||||||||||||||||
Other | 115 | — | 115 | NM | 213 | 31 | 182 | NM | |||||||||||||||||||||
Total | $ | 864 | $ | 1,451 | $ | (587 | ) | (40.5 | )% | $ | 3,054 | $ | 2,726 | $ | 328 | 12.0 | % |
(in thousands) | June 30, | September 30, | |||||||||
2018 | 2017 | Change | |||||||||
Cash and cash equivalents | $ | 26,553 | $ | 3,395 | $ | 23,158 | |||||
Total current assets | $ | 77,928 | $ | 66,489 | $ | 11,439 | |||||
Total current liabilities | $ | 15,515 | $ | 15,983 | $ | (468 | ) | ||||
Working capital | $ | 62,413 | $ | 50,506 | $ | 11,907 | |||||
Total assets | $ | 418,616 | $ | 419,182 | $ | (566 | ) | ||||
Principal amount of term loans and lines of credit | $ | 177,055 | $ | 186,476 | $ | (9,421 | ) | ||||
Current ratio | 5.02 to 1 | 4.16 to 1 |
(in thousands) | Nine Months Ended June 30, | ||||||||||
2018 | 2017 | Change | |||||||||
Net income | $ | 12,300 | $ | 9,613 | $ | 2,687 | |||||
Deferred gain on sale of sugarcane land | (767 | ) | (422 | ) | (345 | ) | |||||
Depreciation, depletion and amortization | 10,327 | 11,529 | (1,202 | ) | |||||||
Deferred income tax provision | 649 | 4,437 | (3,788 | ) | |||||||
Gain on sale of real estate, property and equipment and assets held for sale | (8,315 | ) | (1,338 | ) | (6,977 | ) | |||||
Impairment of long-lived assets | 1,855 | — | 1,855 | ||||||||
Non-cash interest expense on deferred gain on sugarcane land | 1,021 | 1,060 | (39 | ) | |||||||
Stock-based compensation expense | 1,337 | 1,230 | 107 | ||||||||
Other | (285 | ) | 145 | (430 | ) | ||||||
Change in working capital | (2,003 | ) | 2,646 | (4,649 | ) | ||||||
Net cash provided by operating activities | $ | 16,119 | $ | 28,900 | $ | (12,781 | ) |
(in thousands) | Nine Months Ended June 30, | ||||||||||
2018 | 2017 | Change | |||||||||
Capital expenditures: | |||||||||||
Citrus tree development | $ | (10,092 | ) | $ | (6,789 | ) | $ | (3,303 | ) | ||
Breeding herd purchases | (317 | ) | (287 | ) | (30 | ) | |||||
Equipment and other | (1,720 | ) | (4,374 | ) | 2,654 | ||||||
Total | (12,129 | ) | (11,450 | ) | (679 | ) | |||||
Net proceeds from sale of property and equipment and assets held for sale | 31,671 | 3,016 | 28,655 | ||||||||
Notes receivable | (379 | ) | — | (379 | ) | ||||||
Other | — | 155 | (155 | ) | |||||||
Net cash provided by (used in) investing activities | $ | 19,163 | $ | (8,279 | ) | $ | 27,442 |
(in thousands) | Nine Months Ended June 30, | ||||||||||
2018 | 2017 | Change | |||||||||
Repayments on revolving lines of credit | $ | (21,424 | ) | $ | (70,770 | ) | $ | 49,346 | |||
Borrowings on revolving lines of credit | 21,424 | 65,770 | (44,346 | ) | |||||||
Principal payments on term loans | (9,421 | ) | (8,061 | ) | (1,360 | ) | |||||
Treasury stock purchases | (2,215 | ) | (2,174 | ) | (41 | ) | |||||
Dividends paid | (1,480 | ) | (1,496 | ) | 16 | ||||||
Capital contribution received from noncontrolling interest | 1,000 | — | 1,000 | ||||||||
Capital lease obligation payments | (8 | ) | (571 | ) | 563 | ||||||
Net cash used in financing activities | $ | (12,124 | ) | $ | (17,302 | ) | $ | 5,178 |
(a) | Evaluation of Disclosure Controls and Procedures. |
(b) | Changes in Internal Control over Financial Reporting. |
Exhibit Number | Exhibit Index | |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
3.5 | ||
10.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101 | ||
101.INS | ** | XBRL Instance Document |
101.SCH | ** | XBRL Taxonomy Extension Schema Document |
101.CAL | ** | XBRL Taxonomy Calculation Linkbase Document |
101.DEF | ** | XBRL Taxonomy Definition Linkbase Document |
101.LAB | XBRL Taxonomy Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
** | In accordance with Rule 406T of Regulation S-T, these XBRL (eXtensible Business Reporting Language) documents are furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections. |
ALICO, INC. (Registrant) | ||
August 6, 2018 | By: | /s/ Remy W. Trafelet |
Remy W. Trafelet | ||
President and Chief Executive Officer | ||
August 6, 2018 | By: | /s/ John E. Kiernan |
John E. Kiernan | ||
Executive Vice President and Chief Financial Officer |
(a) | Shared Office Services. Supplier shall provide Purchaser with, and Purchaser shall purchase from Supplier, a license to use and occupy a portion of Supplier’s office space located at 410 Park Avenue, 17th Floor (or such other space as is mutually agreed by the parties hereto, the “Shared Office”) (the “Shared Office Services”); |
(b) | Administrative Support. Supplier shall provide Purchaser with, and Purchaser shall purchase from Supplier, such other services as are attendant to the Shared Office Services, including reception, secretarial services and related facilities services, as requested by Purchaser. |
(a) | General Shared Service Fees. In consideration of the Services, during the Term of this Agreement, Purchaser will pay Supplier an amount equal to Supplier’s actual costs of providing the Services as a base shared services fee. Such base shared services fee shall include internal allocations, as determined by Supplier in consultation with Purchaser, and a prorated portion of any security deposit, rent, utilities, telecommunications, phone, information technology infrastructure and support, leasehold improvements, property taxes, office supplies and similar payments actually paid by Supplier in respect of the Shared Office determined by multiplying the amounts paid by Supplier by the percentage of the Shared Office used by Purchaser. All such expenses and payments shall be fully supported with reasonable documentation and copies of all such documentation shall be provided to Purchaser upon Purchaser’s reasonable request to the extent required to support such expenses and payments. |
(b) | On or before December 1 of each year of the Term of this Agreement, Supplier and Purchaser shall jointly agree on an estimate of Supplier’s fees for each functional category of Service set forth in Section 1.1(b) to be provided pursuant this Agreement for the next calendar year; provided, that to the extent such fees cannot be determined, as to such unknown fees, Supplier shall set out the basis on which they shall be charged. It is understood and agreed that all fees charged |
ALICO Shared Services Allocation | 2018-20 | ||||
- Lease up Jun 30, 2020 (6,073 RSF). | |||||
- TBCM put up $300k LOC in Feb 2018. | |||||
Trafelet Brokaw & Co. Office Costs: | |||||
Occupancy | $ | 510,539 | |||
Communications & Technology (internet only) | 19,200 | ||||
General office expense | 1,300 | ||||
542,739 | |||||
Alico Allocation for Shared Services: | |||||
Office Overhead Costs: | 72.79 | % | |||
Total office overhead allocation | 395,076 | ||||
Staff Support: | |||||
Administrative Assistance | 223,399 | ||||
Total Staff Support | 223,399 | ||||
Total Annual Alico Allocation for Shared Services | $ | 618,476 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Alico, Inc. (Alico), |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, and is not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Alico as of, and for, the periods presented in this report; |
4. | Alico’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Alico and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Alico, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of Alico’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in Alico’s internal control over financial reporting that occurred during Alico’s most recent fiscal quarter ended June 30, 2018, that has materially affected, or is reasonably likely to materially affect, Alico’s internal control over financial reporting; and |
5. | Alico’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Alico’s auditors and audit committee of Alico’s Board of Directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 6, 2018 | By: | /s/ Remy W. Trafelet |
Remy W. Trafelet | ||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Alico, Inc. (Alico), |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, and is not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Alico as of, and for, the periods presented in this report; |
4. | Alico’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Alico and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Alico, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of Alico’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in Alico’s internal control over financial reporting that occurred during Alico’s most recent fiscal quarter ended June 30, 2018, that has materially affected, or is reasonably likely to materially affect, Alico’s internal control over financial reporting; and |
5. | Alico’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Alico’s auditors and audit committee of Alico’s Board of Directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 6, 2018 | By: | /s/ John E. Kiernan |
John E. Kiernan | ||
Chief Financial Officer and Executive Vice President |
Date: August 6, 2018 | By: | /s/ Remy W. Trafelet |
Remy W. Trafelet | ||
President and Chief Executive Officer |
Date: August 6, 2018 | By: | /s/ John E. Kiernan |
John E. Kiernan | ||
Chief Financial Officer and Executive Vice President |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 03, 2018 |
|
Document and Entity Information: | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ALICO INC | |
Entity Central Index Key | 0000003545 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 8,199,957 |
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 1 | $ 1.00 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 8,416,145 | 8,416,145 |
Common stock, shares outstanding (in shares) | 8,192,398 | 8,238,830 |
Treasury stock at cost, shares (in shares) | 223,747 | 177,315 |
Basis of Presentation |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Description of Business Alico, Inc. (“Alico”), together with its subsidiaries (collectively, the “Company", "we", "us" or "our”), is a Florida agribusiness and land management company owning approximately 117,000 acres of land throughout Florida, including approximately 90,000 acres of mineral rights. The Company manages its land based upon its primary usage, and reviews its performance based upon two primary classifications - Alico Citrus (formerly Orange Co.) and Conservation and Environmental Resources. Financial results are presented based upon its three business segments (Alico Citrus, Conservation and Environmental Resources and Other Operations). Basis of Presentation The Company has prepared the accompanying financial statements on a condensed consolidated basis. These accompanying unaudited condensed consolidated interim financial statements, which are referred to herein as the “Financial Statements", have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to Article 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. These Financial Statements do not include all of the disclosures required for complete annual financial statements and, accordingly, certain information, footnotes and disclosures normally included in annual financial statements, prepared in accordance with U.S. GAAP, have been condensed or omitted in accordance with SEC rules and regulations. Accordingly, the Financial Statements should be read in conjunction with the Company's audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017, as filed with the SEC on December 11, 2017. The Financial Statements presented in this Form 10-Q are unaudited. However, in the opinion of management, such Financial Statements include all adjustments, consisting solely of normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the current fiscal year ending September 30, 2018. All intercompany transactions and account balances between the consolidated businesses have been eliminated. Segments Operating segments are defined in the criteria established under the Financial Accounting Standards Board - Accounting Standards Codification (“FASB ASC”) Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. The Company’s CODM assesses performance and allocates resources based on three operating segments: Alico Citrus (formerly Orange Co.), Conservation and Environmental Resources and Other Operations. Principles of Consolidation The Financial Statements include the accounts of Alico, Inc. and the accounts of all the subsidiaries in which a controlling interest is held by the Company. Under U.S. GAAP, consolidation is generally required for investments of more than 50% of the outstanding voting stock of an investee, except when control is not held by the majority owner. The Company’s subsidiaries include: Alico Land Development, Inc., Alico-Agri, Ltd., Alico Plant World, LLC, Alico Fruit Company, LLC, Alico Citrus Nursery, LLC, Alico Chemical Sales, LLC, 734 Citrus Holdings LLC and subsidiaries, Alico Fresh Fruit LLC, Alico Skink Mitigation, LLC and Citree Holdings 1, LLC. The Company considers the criteria established under FASB ASC Topic 810, “Consolidations” in its consolidation process. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the date of the accompanying Financial Statements, the disclosure of contingent assets and liabilities in the Financial Statements and the accompanying Notes, and the reported amounts of revenues and expenses and cash flows during the periods presented. Actual results could differ from those estimates based upon future events. The Company evaluates estimates on an ongoing basis. The estimates are based on current and expected economic conditions, historical experience, the experience and judgment of the Company’s management and various other specific assumptions that the Company believes to be reasonable. The Company evaluates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Reclassifications Certain prior year amounts have been reclassified in the accompanying Financial Statements for consistent presentation to the current period. These reclassifications had no impact on net income, equity, cash flows or working capital. Noncontrolling Interest in Consolidated Subsidiary The Financial Statements include all assets and liabilities of the less-than-100%-owned subsidiary the Company controls, Citree Holdings I, LLC (“Citree”). Accordingly, the Company has recorded a noncontrolling interest in the equity of such entity. Citree had a net loss of approximately $15,000 for each of the three months ended June 30, 2018 and 2017, respectively, and a net loss of approximately $65,000 and net income of approximately $73,000 for the nine months ended June 30, 2018 and 2017, respectively, of which 51% is attributable to the Company. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” as a new ASC topic (Topic 606). The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU further provides guidance for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, lease contracts). The FASB subsequently issued ASU 2015-14 to defer the effective date of ASU 2014-09 until annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with earlier adoption permitted. The FASB also recently issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," and 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," that clarify or amend the original Topic 606. ASU 2014-09 can be adopted using one of two retrospective transition methods: 1) retrospectively to each prior reporting period presented or 2) as a cumulative-effect adjustment as of the date of adoption. The Company has reviewed ASU 2014-09 and does not expect this new guidance to have a material impact on its consolidated financial statements. Seasonality Historically, the second and third quarters of Alico's fiscal year produce the majority of the Company's annual revenue. Working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. Due to Hurricane Irma, in the three months ended June 30, 2018, Alico produced a smaller percentage of boxes harvested, as compared to the estimated totals for the full harvest season, than in past years. As a result, the working capital requirements varied from the typical trends historically experienced in the current year. Because of the seasonality of the business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year. |
Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following at June 30, 2018 and September 30, 2017:
The Company records its inventory at the lower of cost or net realizable value. For the three and nine months ended June 30, 2018 the Company recorded a net realizable adjustment on inventories of approximately $110,000. For the three and nine months ended June 30, 2017, the Company did not record any adjustments to reduce inventory to net realizable value. On January 25, 2018, the Company sold its breeding herd to a third party and as a result the value of the Beef Cattle inventory was expensed. In September 2017, the State of Florida's citrus business, including the Company's unharvested citrus crop, was significantly impacted by Hurricane Irma. For the year ended September 30, 2017, the Company recorded a casualty loss on its inventory. In calculating this casualty loss, the Company made certain estimates. As of June 30, 2018, there were no revisions to these estimates which required any further inventory losses to be recorded. In the three and nine months ended June 30, 2018, the Company received insurance proceeds relating to Hurricane Irma of approximately $460,000 for property and casualty damage claims and approximately $3,725,000 for crop claims. Subsequent to June 30, 2018, the Company has received approximately $5,192,000 in additional insurance proceeds relating to crop claims, which have been recorded in operating expenses. The Company has additional property and casualty and crop insurance claims outstanding and is awaiting determination of additional proceeds to be received. In addition to the commercial insurance claims which have been submitted, the Company may be eligible for Irma federal relief programs distributed by the Farm Service Agency under the 2017 Wildfires and Hurricane Indemnity Program (2017 WHIP) as well as block grants that will be administered through the State of Florida. The specifics of these programs are still being finalized, and at this time, the Company cannot determine the amount of federal relief funds, if any, which will be received or when these funds will be disbursed. |
Assets Held for Sale |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Held for Sale | Assets Held for Sale In accordance with its strategy to dispose of non-core and under-performing assets, the following assets have been classified as assets held for sale as of June 30, 2018 and September 30, 2017:
On May 2, 2018, the Company sold its Gal Hog property for approximately $7,300,000 and recognized a gain of approximately $6,709,000. On March 30, 2018, the Company sold property located on its Winter Haven location for approximately $225,000 and recognized a loss of approximately $50,000. This asset was classified as an asset held for sale during the first quarter of fiscal 2018. On February 12, 2018, the Company sold its property at Chancey Bay for approximately $4,200,000 and realized a loss of approximately $51,000. As part of the transaction, the Company agreed to pay the purchaser rent of $200,000 in exchange for Alico retaining the rights of harvesting and selling of the fruit in the 2017/2018 harvest season. On February 9, 2018, the Company sold its nursery located in Gainesville for approximately $6,500,000 and realized a gain of approximately $111,000. On January 25, 2018, the Company sold its breeding herd to a third party for approximately $7,800,000. As part of this transaction, the purchaser is also leasing grazing and other rights on the Alico Ranch from the Company at a rate of $100,000 per month. On January 19, 2018, the Company sold certain trailers to a third party for $500,000. The Company received $125,000 and the remaining portion is to be paid in accordance with a promissory note, which bears interest at 5%, over three years. On October 30, 2017, the Company sold its corporate office building in Fort Myers, Florida for $5,300,000 and realized a gain of approximately $1,751,000. The sales agreement provides that the Company lease back a portion of the office space for five years. The Company recorded an impairment loss in operating expenses of approximately $4,131,000 during fiscal year 2017 on these assets classified as assets held for sale at September 30, 2017. The Company has used a portion of the proceeds to pay down debt (see Note 5. "Long-Term Debt and Lines of Credit") and repurchase common shares in the open market, and plans to use the remaining cash proceeds from the sale of these assets towards future working capital requirements and other corporate purposes. In June 2018, the Company's Board of Directors approved listing its Island Pond and Rawle properties, as well as property located on the East Ranch, for sale. As a result, the Company reclassified the net book value of the properties of approximately $9,660,000 to assets held for sale as of June 30, 2018. The estimated fair value of the Island Pond property was less than the net book value, and, as such, the Company recorded an impairment in operating expenses of approximately $1,855,000 as a result of the reclassification. The estimated fair value of the Island Pond property exceeded the net book value, and no impairment was recognized as a result of the reclassification. On June 29, 2018, the Company executed a contract to sell 1,294 acres for a parcel of property located at the East Ranch for approximately $3,200,000. |
Property and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of the following at June 30, 2018 and September 30, 2017:
On March 15, 2018, the Company sold certain parcels comprised of citrus trees and land located on its Ranch One grove for approximately $586,000 and recognized a loss of approximately $87,000. As part of the transaction, the revenues generated from these parcels during the 2017/2018 harvest season were allocated to the purchaser. |
Long-Term Debt and Lines of Credit |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Lines of Credit | Long-Term Debt and Lines of Credit The following table summarizes long-term debt and related deferred financing costs net of accumulated amortization at June 30, 2018 and September 30, 2017:
The following table summarizes lines of credit and related deferred financing costs net of accumulated amortization at June 30, 2018 and September 30, 2017:
Future maturities of long-term debt and lines of credit as of June 30, 2018 are as follows:
Interest costs expensed and capitalized were as follows:
Credit Facilities The Company's credit facilities initially consisted of $125,000,000 in fixed interest rate term loans (“Met Fixed-Rate Term Loans”), $57,500,000 in variable interest rate term loans (“Met Variable-Rate Term Loans”), and a $25,000,000 revolving line of credit (“RLOC”) with Metropolitan Life Insurance Company and New England Life Insurance Company (collectively “Met”), and a $70,000,000 working capital line of credit (“WCLC”) with Rabo Agrifinance, Inc. (“Rabo”). The term loans and RLOC are secured by real property. The security for the term loans and RLOC consists of approximately 38,200 gross acres of citrus groves and 5,762 gross acres of ranch land. The WCLC is collateralized by the Company’s current assets and certain other personal property owned by the Company. The term loans, collectively, are subject to quarterly principal payments of $2,281,250, and mature November 1, 2029. The Met Fixed-Rate Term Loans bear interest at 4.15% per annum, and the Met Variable-Rate Term Loans bear interest at a rate equal to 90 day LIBOR plus 150 basis points (the “LIBOR spread”). The LIBOR spread was adjusted by the lender on May 1, 2017 and is subject to further adjustment by the lender on May 1, 2019 and every two years thereafter until maturity. Interest on the term loans is payable quarterly. The interest rates on the Met Variable-Rate Term Loans were 4.01% per annum and 2.96% per annum as of June 30, 2018 and September 30, 2017, respectively. The Company may prepay up to $8,750,000 of the Met Fixed-Rate Term Loan principal annually without penalty, and any such prepayments may be applied to reduce subsequent mandatory principal payments. The maximum annual prepayment was made for calendar year 2015. During the first and second quarter of fiscal 2018, the Company elected not to make its principal payment and utilized its prepayment to satisfy its principal payment requirements for such quarters. At June 30, 2018, the Company had $5,625,000 remaining available to reduce future mandatory principal payments should the Company elect to do so. The Met Variable-Rate Term Loans may be prepaid without penalty. The RLOC bears interest at a floating rate equal to 90 day LIBOR plus 150 basis points, payable quarterly. The LIBOR spread was adjusted by the lender on May 1, 2017 and is subject to further adjustment every two years thereafter. Outstanding principal, if any, is due at maturity on November 1, 2019. The RLOC is subject to an annual commitment fee of 25 basis points on the unused portion of the line of credit. The RLOC is available for funding general corporate needs. The variable interest rate was 4.01% and 2.96% per annum as of June 30, 2018 and September 30, 2017, respectively. Availability under the RLOC was $25,000,000 as of June 30, 2018. The WCLC is a revolving credit facility and is available for funding working capital and general corporate requirements. The interest rate on the WCLC is based on the one month LIBOR, plus a spread, which is adjusted quarterly, based on the Company's debt service coverage ratio for the preceding quarter and can vary from 175 to 250 basis points. The rate is currently at LIBOR plus 175 basis points. The variable interest rate was 3.73% per annum and 2.99% per annum as of June 30, 2018 and September 30, 2017, respectively. The WCLC agreement was amended on September 30, 2017, and the primary terms of the amendment were an extension of the maturity to November 1, 2019. There were no changes to the commitment amount or interest rate. Availability under the WCLC was approximately $59,700,000 as of June 30, 2018 and September 30, 2017, respectively. The WCLC is subject to a quarterly commitment fee on the daily unused availability under the line computed as the commitment amount less the aggregate of the outstanding loans and outstanding letters of credit. The commitment fee is adjusted quarterly based on Alico's debt service coverage ratio for the preceding quarter and can vary from a minimum of 20 basis points to a maximum of 30 basis points. Commitment fees to date have been charged at 20 basis points. The outstanding balance on the WCLC was $0 at June 30, 2018. The WCLC agreement provides for Rabo to issue up to $20,000,000 in letters of credit on the Company’s behalf. As of June 30, 2018, there was approximately $10,300,000 in outstanding letters of credit, which correspondingly reduced the Company's availability under the line of credit. These credit facilities noted above are subject to various covenants including the following financial covenants: (i) minimum debt service coverage ratio of 1.10 to 1.00, (ii) tangible net worth of at least $160,000,000 increased annually by 10% of consolidated net income for the preceding year, or approximately $162,300,000 for the year ended September 30, 2017, (iii) minimum current ratio of 1.50 to 1.00, (iv) debt to total assets ratio not greater than .625 to 1.00, and, solely in the case of the WCLC, (v) a limit on capital expenditures of $30,000,000 per fiscal year. During the three months ended June 30, 2018, the Company entered into a Consent and Waiver amendment to the WCLC Agreement to increase the amount of permitted sales allowed and to allow for a sales leaseback transaction. As of June 30, 2018, the Company was in compliance with all of the financial covenants. The credit facilities also include a Met Life term loan collateralized by real estate owned by Citree (“Met Citree Loan”). This is a $5,000,000 credit facility that bears interest at a fixed rate of 5.28% per annum. An initial advance of $500,000 was made at closing on March 4, 2014. The loan agreement was amended to provide for an interim advance of $2,000,000 on September 17, 2015, and the interest rate was adjusted to 5.30% per annum at the time of the interim advance. The final $2,500,000 advance was funded on April 27, 2016 and the interest rate was adjusted to 5.28%. Principal payments on this term loan commenced February 1, 2018 and are payable quarterly thereafter. The loan matures in February 2029. Silver Nip Citrus Debt There are two fixed-rate term loans, with an original combined balance of $27,550,000, bearing interest at 5.35% per annum (“Pru Loans A & B”). Principal of $290,000 is payable quarterly, together with accrued interest. On February 15, 2015, Silver Nip Citrus made a prepayment of $750,000. In addition, the Company made prepayments of approximately $4,453,000 in the second fiscal quarter of 2018 with the sale of certain properties which were collateralized under these loans. The Company may prepay up to $5,000,000 of principal without penalty. As such, the Company exceeded the allowed $5,000,000 prepayment by approximately $203,000 and was required to make a premium payment of approximately $22,000. The loans are collateralized by real estate in Collier, Hardee, Highlands, Martin, Osceola and Polk Counties, Florida and mature on June 1, 2029 and June 1, 2033. Silver Nip Citrus entered into two additional fixed-rate term loans with Prudential to finance the acquisition of a 1,500 acre citrus grove on September 4, 2014. Each loan was in the original amount of $5,500,000. Principal of $55,000 per loan is payable quarterly, together with accrued interest. One loan bears interest at 3.85% per annum (“Pru Loan E”), while the other bears interest at 3.45% per annum (“Pru Loan F”). The interest rate on Pru Loan E is subject to adjustment on September 1, 2019 and every year thereafter until maturity. Both loans are collateralized by real estate in Charlotte County, Florida. Pru Note E matures September 1, 2021, and Pru Note F matures September 1, 2039. The Silver Nip Citrus credit agreements were amended on December 1, 2016. The primary terms of the amendments were (1) the Company provided a limited $8,000,000 guaranty of the Silver Nip debt, (2) the limited personal guarantees provided by George Brokaw, Remy Trafelet and Clayton Wilson prior to the Company’s merger with Silver Nip Citrus, and also totaling $8,000,000, were released and (3) the consolidated current ratio covenant requirement was reduced from 1.50 to 1.00 to 1.00 to 1:00. Silver Nip Citrus was in compliance with the current ratio covenant as of June 30, 2018, the most recent measurement date. Other Modifications of Rabo and Prudential Credit Agreements In February 2015, Rabo agreed, subject to certain conditions, that the Company may loan Silver Nip Citrus up to $7,000,000 on a revolving basis for cash management purposes. These advances would be funded from either cash on hand or draws on the Company’s WCLC. Silver Nip Citrus has provided a $7,000,000 limited guaranty and security agreement granting Rabo a security interest in crops, accounts receivable, inventory and certain other assets. This modification required the amendment of various Prudential and Rabo loan documents and mortgages. |
Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities Accrued Liabilities consist of the following at June 30, 2018 and September 30, 2017:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act contains significant changes to corporate taxes, including a permanent reduction of the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The Company’s statutory rate for fiscal year ended September 30, 2018 will be 24.5%, based on a fiscal year blended rate calculation. The 21% U.S. corporate tax rate will apply to fiscal years ending September 30, 2019 and each year thereafter. Additionally, the Act requires a one-time remeasurement of certain tax related assets and liabilities. During the first quarter ended December 31, 2017, the Company made certain estimates related to the impact of the Act including the remeasurement of deferred taxes at the new expected tax rate and a revised effective tax rate for the year ended September 30, 2018. The amounts recorded in the nine months ended June 30, 2018 for the remeasurement of deferred taxes principally relate to the reduction in the U.S. corporate income tax rate. During the second and third quarter ended June 30, 2018, the Company made certain updates to the estimates used during the first quarter, which resulted in a change to the remeasurement. For the nine months ended June 30, 2018, the Company has recorded a tax benefit of approximately $10,000,000 to account for these deferred tax impacts. As of June 30, 2018, the Company has a capital loss carryforward of approximately $24,600,000, which will expire on September 30, 2018. Management believes that it is more likely than not that the full benefit of this deferred tax asset will not be realized. In recognition of this risk, the Company has provided for a valuation allowance for the nine months ended June 30, 2018 of approximately $6,100,000 on the deferred tax asset. |
Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Basic earnings per share for Alico's common stock is calculated by dividing net income attributable to Alico, Inc. common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per common share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of common shares issuable under equity-based compensation plans in accordance with the treasury stock method, except where the inclusion of such common shares would have an anti-dilutive impact. For the three and nine months ended June 30, 2018 and 2017, basic and diluted earnings per common share were as follows:
The computation of diluted earnings per common share for the three and nine months ended June 30, 2018 and 2017 includes the impact of certain equity awards because they are dilutive. Such awards are comprised of 750,000 stock options granted to Executive Officers (see Note 12. "Related Party Transactions") during the three months ended December 31, 2016. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Segments Total revenues represent sales to unaffiliated customers, as reported in the Condensed Consolidated Statements of Operations. Goods and services produced by these segments are sold to wholesalers and processors in the United States who prepare the products for consumption. The Company evaluates the segments’ performance based on direct margins (gross profit) from operations before general and administrative expenses, interest expense, other income (expense) and income taxes, not including nonrecurring gains and losses. Information by operating segment is as follows:
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity The Company recognizes stock-based compensation expense for (i) Board of Directors fees (paid in treasury stock), and (ii) the Stock Incentive Plan of 2015 (paid in restricted stock and stock options). Stock-based compensation expense is recognized in general and administrative expenses in the Condensed Consolidated Statements of Operations. Stock Compensation - Board of Directors The Board of Directors can either elect to receive stock compensation or cash for their fees for services provided. Stock-based compensation expense relating to the Board of Director fees was approximately $238,000 and $621,000 for the three and nine months ended June 30, 2018, and approximately $163,000 and $581,000 for the three and nine months ended June 30, 2017, respectively. Restricted Stock In fiscal year 2015, the Company awarded 12,500 restricted shares of the Company’s common stock (“Restricted Stock”) to two senior executives under the 2015 Plan at a weighted average fair value of $49.49 per common share, vesting over three to five years. In November 2017, a senior executive was awarded 5,000 restricted shares of the Company’s common stock (“Restricted Stock”) under the 2015 Plan at a weighted average fair value of $31.95 per common share, vesting over approximately three years. Stock compensation expense related to the Restricted Stock totaled approximately $37,000 and $100,000 for the three and nine months ended June 30, 2018, respectively, and approximately $27,000 and $238,000 for the three and nine months ended June 30, 2017, respectively. There was approximately $209,000 and $149,000 of total unrecognized stock compensation costs related to unvested stock compensation for the Restricted Stock grants at June 30, 2018 and September 30, 2017, respectively. Stock Option Grant On December 31, 2016, the Company entered into new employment agreements (collectively, the “Employment Agreements”) with each of Remy W. Trafelet, Henry R. Slack, and George R. Brokaw (collectively, the “Executives”). Mr. Trafelet serves as the President and Chief Executive Officer of the Company, Mr. Slack serves as the Executive Chairman of the Company, and Mr. Brokaw serves as the Executive Vice Chairman of the Company, and each of them continues to serve on the Company’s Board of Directors. A stock option grant of 300,000 options in the case of Mr. Trafelet and 225,000 options in the case of each of Messrs. Slack and Brokaw (collectively, the “Option Grants”) were granted on December 31, 2016. The option price was set at $27.15, the closing price on December 31, 2016. The Option Grants will vest as follows: (i) 25% of the options will vest if the price of the Company’s common stock during a consecutive 20-trading day period exceeds $60.00; (ii) 25% of the options will vest if such price exceeds $75.00; (iii) 25% of the options will vest if such price exceeds $90.00; and (iv) 25% of the options will vest if such price exceeds $105.00. If the applicable stock price hurdles have not been achieved by (A) the second anniversary of the Executive’s termination of employment, if the Executive’s employment is terminated due to death or disability, (B) the date that is 18 months following the Executive’s termination of employment, if the Executive’s employment is terminated by the Company without cause, by the Executive with good reason, or due to the Executive’s retirement, or (C) the date of the termination of the Executive’s employment for any other reason, then any unvested options will be forfeited. In addition, if the applicable stock price hurdles have not been achieved by the fifth anniversary of the grant date (or the fourth anniversary of the grant date, in the case of the tranche described in clause (i) above), then any unvested options will be forfeited. The Option Grants will also become vested to the extent that the applicable stock price hurdles are satisfied in connection with a change in control of the Company. Stock compensation expense related to the options totaled approximately $205,000 and $616,000 for the three and nine months ended June 30, 2018, respectively, and approximately $205,000 and $411,000 for the three and nine months ended June 30, 2017, respectively. At June 30, 2018 and September 30, 2017, there was approximately $1,414,000 and $2,030,000 of total unrecognized stock compensation costs related to unvested share-based compensation for the option grants, respectively. The total unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.83 years. The fair value of the Option Grants was estimated on the date of grant using a Monte Carlo valuation model that uses the assumptions noted in the following table. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding; the range given below results from different time-frames for the various market conditions being met.
The weighted-average grant-date fair value of the Option Grants was $3.53. There were no additional stock options granted, exercised or forfeited for the three and nine months ended June 30, 2018. Stock Repurchase Authorizations In fiscal year 2017, the Board of Directors authorized the repurchase of up to $7,000,000 of the Company’s common stock in two separate authorizations (the "2017 Authorization"). In March 2017, the Board of Directors authorized the repurchase of up to $5,000,000 of the Company’s common stock beginning March 9, 2017 and continuing through March 9, 2019. In May 2017, the Board of Directors authorized the repurchase of up to an additional $2,000,000 of the Company’s common stock beginning May 24, 2017 and continuing through May 24, 2019. The stock repurchases made under this repurchase were made through open market transactions at times and in such amounts as the Company’s broker determined subject to the provisions of SEC Rule 10b-18. For the three and nine months ended June 30, 2018, the Company purchased 64,741 shares at a cost of $2,009,117 and 72,266 shares at a cost of $2,214,756, respectively, under the 2017 Authorization. As of June 29, 2018, the Company terminated its stock repurchase activity; however, if the Company chooses to resume repurchasing stock it has $1,721,427 available, in accordance with the 2017 Authorization. In fiscal year 2016, the Board of Directors authorized the repurchase of up to 50,000 shares of the Company’s outstanding common stock beginning February 18, 2016 and continuing through February 17, 2017 (the "2016 Authorization"). No shares were repurchased under the 2016 Authorization. The following table illustrates the Company’s treasury stock activity for the nine months ended June 30, 2018:
Capital Contribution On April 16, 2018, all operating partners of Citree received a funding notice relating to an additional Cash Capital Contribution (“Contribution”) requirement of approximately $2,041,000 as a result of Hurricane Irma reducing the amount of crop available for sale in the 2017-2018 harvest season and the Company adopting a more extensive caretaking plan focused on limiting the impact of citrus greening. The Company’s portion of the Contribution was approximately $1,041,000 and was funded on April 27, 2018. The remaining portion of the Contribution of $1,000,000 was funded by the noncontrolling parties. |
Commitments and Contingencies |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit The Company had outstanding standby letters of credit in the total amount of approximately $10,300,000 at June 30, 2018 and September 30, 2017, respectively, to secure its various contractual obligations. Legal Proceedings From time to time, Alico may be involved in litigation relating to claims arising out of its operations in the normal course of business. There are no other current legal proceedings to which the Company is a party or of which any of its property is subject that it believes will have a material adverse effect on its financial position, results of operations or cash flows. Purchase Commitments The Company enters into contracts for the purchase of citrus trees during the normal course of its business. As of June 30, 2018, the Company had approximately $2,678,000 relating to outstanding commitments for these purchases, which will be paid upon delivery. |
Related Party Transactions |
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Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Clayton G. Wilson The Company entered into a Separation and Consulting Agreement with Clayton G. Wilson (the “Separation and Consulting Agreement”), the Company’s Chief Executive Officer, pursuant to which Mr. Wilson stepped down as Chief Executive Officer of the Company effective as of December 31, 2016. Under the Separation and Consulting Agreement, Mr. Wilson also acknowledged and agreed that he would continue to be bound by the restrictive covenants set forth in his Employment Agreement with the Company. The Separation and Consulting Agreement provided that, subject to his execution, delivery, and non-revocation of a general release of claims in favor of the Company, Mr. Wilson would be entitled to vesting of any unvested portion of the restricted stock award granted to him under his Employment Agreement. In addition, the Separation and Consulting Agreement provided that Mr. Wilson serve as a consultant to the Company during 2017 and would receive an aggregate consulting fee of $750,000 for such services (payable $200,000 in an initial lump sum, $275,000 in a lump sum on July 1, 2017, and $275,000 in six equal monthly installments commencing July 31, 2017 and ending December 31, 2017). As of December 31, 2017 the Company satisfied its obligation to Mr. Wilson in full. The Company expensed approximately $0 and $187,500 under the Consulting and Non-Competition Agreement for the three and nine months ended June 30, 2018, respectively, and expensed $187,000 and $375,000 for the three and nine months ended June 30, 2017, respectively. Mr. Wilson resigned as a member of the Company’s Board of Directors effective February 27, 2017. Remy W. Trafelet, Henry R. Slack, and George R. Brokaw On December 31, 2016, the Company entered into new employment agreements (collectively, the “Employment Agreements”) with each of Remy W. Trafelet, Henry R. Slack, and George R. Brokaw (collectively, the “Executives”). Mr. Trafelet serves as the President and Chief Executive Officer of the Company, Mr. Slack serves as the Executive Chairman of the Company, and Mr. Brokaw serves as the Executive Vice Chairman of the Company, and each of them continues to serve on the Company’s Board of Directors. The Employment Agreements provide for an annual base salary of $400,000 in the case of Mr. Trafelet and $250,000 in the case of each of Messrs. Slack and Brokaw and, additionally, provided for payment to the Executives an amount in cash equal to $400,000 to Mr. Trafelet and $250,000 to each of Messrs. Slack and Brokaw within five business days of December 31, 2016. As part of their employment agreements, each of the Executives was granted stock options. A stock option grant of 300,000 options in the case of Mr. Trafelet, and 225,000 options in the case of each of Messrs. Slack and Brokaw (collectively, the “Option Grants”) was provided. The Option Grants vest in accordance with the terms as described in Note 10. The Employment Agreements also provide that, if the applicable Executive’s employment is terminated by the Company without “cause” or the applicable Executive resigns with “good reason” (as each such term is defined in the Employment Agreements), then, subject to his execution, delivery, and non-revocation of a general release of claims in favor of the Company, the Executive will be entitled to cash severance in an amount equal to 24 months (in the case of Mr. Trafelet) or 18 months (in the case of Messrs. Slack and Brokaw) of the Executive’s annual base salary. The Employment Agreement includes various restrictive covenants in favor of the Company, including a confidentiality covenant, a nondisparagement covenant, and 12-month post-termination noncompetition and customer and employee nonsolicitation covenants. Beginning June 26, 2017, both Messrs. Slack and Brokaw agreed to waive payment of their salaries. Ken Smith On March 20, 2015, Ken Smith tendered his resignation as Chief Operating Officer, and as an employee of the Company. Mr. Smith’s resignation included a waiver of any rights to any payments under his Change-in-Control Agreement with the Company. On March 20, 2015, the Company and Mr. Smith also entered into a Consulting and Non-Competition Agreement under which (i) Mr. Smith provided consulting services to the Company during the three-year period after the resignation date, (ii) Mr. Smith agreed to be bound by certain non-competition covenants relating to the Company’s citrus operations and non-solicitation and non-interference covenants for a period of two years after the resignation date, and (iii) the Company paid Mr. Smith $925,000 for such services and covenants. The Company did not incur any expense under the Consulting and Non-Competition Agreement for the three months ended June 30, 2018 and 2017, respectively, and expensed $0 and $100,000 for the nine months ended June 30, 2018 and 2017, respectively. Shared Services Agreement The Company has a shared services agreement with Trafelet Brokaw Capital Management, L.P. (“TBCM”), whereby the Company will reimburse TBCM for use of office space and various administrative and support services. The agreement has recently been renewed through December 31, 2018. The annual cost of the office and services is approximately $618,000. The Company expensed approximately $149,000 and $223,000 under the Shared Services Agreement for the three months ended June 30, 2018 and 2017, respectively, and approximately $443,000 and for both the nine months ended June 30, 2018 and 2017. |
Basis of Presentation (Policies) |
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Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying financial statements on a condensed consolidated basis. These accompanying unaudited condensed consolidated interim financial statements, which are referred to herein as the “Financial Statements", have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to Article 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. These Financial Statements do not include all of the disclosures required for complete annual financial statements and, accordingly, certain information, footnotes and disclosures normally included in annual financial statements, prepared in accordance with U.S. GAAP, have been condensed or omitted in accordance with SEC rules and regulations. Accordingly, the Financial Statements should be read in conjunction with the Company's audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017, as filed with the SEC on December 11, 2017. The Financial Statements presented in this Form 10-Q are unaudited. However, in the opinion of management, such Financial Statements include all adjustments, consisting solely of normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the current fiscal year ending September 30, 2018. All intercompany transactions and account balances between the consolidated businesses have been eliminated. |
Segments | Segments Operating segments are defined in the criteria established under the Financial Accounting Standards Board - Accounting Standards Codification (“FASB ASC”) Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. The Company’s CODM assesses performance and allocates resources based on three operating segments: Alico Citrus (formerly Orange Co.), Conservation and Environmental Resources and Other Operations. |
Principles of Consolidation and Noncontrolling Interest in Consolidated Subsidiary | Noncontrolling Interest in Consolidated Subsidiary The Financial Statements include all assets and liabilities of the less-than-100%-owned subsidiary the Company controls, Citree Holdings I, LLC (“Citree”). Accordingly, the Company has recorded a noncontrolling interest in the equity of such entity. Principles of Consolidation The Financial Statements include the accounts of Alico, Inc. and the accounts of all the subsidiaries in which a controlling interest is held by the Company. Under U.S. GAAP, consolidation is generally required for investments of more than 50% of the outstanding voting stock of an investee, except when control is not held by the majority owner. The Company’s subsidiaries include: Alico Land Development, Inc., Alico-Agri, Ltd., Alico Plant World, LLC, Alico Fruit Company, LLC, Alico Citrus Nursery, LLC, Alico Chemical Sales, LLC, 734 Citrus Holdings LLC and subsidiaries, Alico Fresh Fruit LLC, Alico Skink Mitigation, LLC and Citree Holdings 1, LLC. The Company considers the criteria established under FASB ASC Topic 810, “Consolidations” in its consolidation process. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the date of the accompanying Financial Statements, the disclosure of contingent assets and liabilities in the Financial Statements and the accompanying Notes, and the reported amounts of revenues and expenses and cash flows during the periods presented. Actual results could differ from those estimates based upon future events. The Company evaluates estimates on an ongoing basis. The estimates are based on current and expected economic conditions, historical experience, the experience and judgment of the Company’s management and various other specific assumptions that the Company believes to be reasonable. The Company evaluates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified in the accompanying Financial Statements for consistent presentation to the current period. These reclassifications had no impact on net income, equity, cash flows or working capital. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” as a new ASC topic (Topic 606). The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU further provides guidance for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, lease contracts). The FASB subsequently issued ASU 2015-14 to defer the effective date of ASU 2014-09 until annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with earlier adoption permitted. The FASB also recently issued ASU 2016-10, "Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing," and 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," that clarify or amend the original Topic 606. ASU 2014-09 can be adopted using one of two retrospective transition methods: 1) retrospectively to each prior reporting period presented or 2) as a cumulative-effect adjustment as of the date of adoption. The Company has reviewed ASU 2014-09 and does not expect this new guidance to have a material impact on its consolidated financial statements. |
Seasonality | Seasonality Historically, the second and third quarters of Alico's fiscal year produce the majority of the Company's annual revenue. Working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. Due to Hurricane Irma, in the three months ended June 30, 2018, Alico produced a smaller percentage of boxes harvested, as compared to the estimated totals for the full harvest season, than in past years. As a result, the working capital requirements varied from the typical trends historically experienced in the current year. Because of the seasonality of the business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year. |
Inventories (Tables) |
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Schedule of inventories | Inventories consist of the following at June 30, 2018 and September 30, 2017:
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Assets Held for Sale (Tables) |
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Schedule of assets held for sale | In accordance with its strategy to dispose of non-core and under-performing assets, the following assets have been classified as assets held for sale as of June 30, 2018 and September 30, 2017:
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Property and Equipment, Net (Tables) |
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Schedule of property and equipment, net | Property and equipment, net consists of the following at June 30, 2018 and September 30, 2017:
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Long-Term Debt and Lines of Credit (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt, net of current portion | The following table summarizes long-term debt and related deferred financing costs net of accumulated amortization at June 30, 2018 and September 30, 2017:
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Schedule of lines of credit | The following table summarizes lines of credit and related deferred financing costs net of accumulated amortization at June 30, 2018 and September 30, 2017:
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Schedule of future maturities of debt and lines of credit | Future maturities of long-term debt and lines of credit as of June 30, 2018 are as follows:
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Schedule of interest costs expensed and capitalized | Interest costs expensed and capitalized were as follows:
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Accrued Liabilities (Tables) |
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Schedule of accrued liabilities | Accrued Liabilities consist of the following at June 30, 2018 and September 30, 2017:
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Earnings Per Common Share (Tables) |
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Schedule of basic and diluted earnings per common share | For the three and nine months ended June 30, 2018 and 2017, basic and diluted earnings per common share were as follows:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information by business segment | Information by operating segment is as follows:
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Stockholders' Equity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock options using valuation assumptions | The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding; the range given below results from different time-frames for the various market conditions being met.
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Schedule of treasury stock purchases and issuances | The following table illustrates the Company’s treasury stock activity for the nine months ended June 30, 2018:
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Basis of Presentation (Details) a in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018
USD ($)
a
classification
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
a
classification
segment
|
Jun. 30, 2017
USD ($)
|
|
Property, Plant and Equipment [Line Items] | ||||
Number of business segments | segment | 3 | |||
Citree | ||||
Property, Plant and Equipment [Line Items] | ||||
Net income (loss) attributable to noncontrolling interest | $ | $ (15) | $ (15) | $ (65) | $ 73 |
Ownership interest (as a percent) | 51.00% | 51.00% | 51.00% | 51.00% |
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Area of land owned (in acres) | 117 | 117 | ||
Number of primary classifications | classification | 2 | 2 | ||
Mineral Rights | ||||
Property, Plant and Equipment [Line Items] | ||||
Area of land owned (in acres) | 90 | 90 |
Inventories (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Aug. 06, 2018 |
Jun. 30, 2018 |
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Inventory [Line Items] | ||||
Other | $ 2,002 | $ 2,002 | $ 2,105 | |
Total inventories | 29,726 | 29,726 | 36,204 | |
Inventory Write-down | 110 | 110 | ||
Proceeds received from insurance relating to property and casualty damage claims | 460 | 460 | ||
Proceeds from insurance settlement, crop claims | 3,725 | 3,808 | ||
Unharvested fruit crop on the trees | ||||
Inventory [Line Items] | ||||
Unharvested fruit crop on the trees and Beef cattle | 27,724 | 27,724 | 32,145 | |
Beef cattle | ||||
Inventory [Line Items] | ||||
Unharvested fruit crop on the trees and Beef cattle | $ 0 | $ 0 | $ 1,954 | |
Subsequent Event | ||||
Inventory [Line Items] | ||||
Proceeds from insurance settlement, crop claims | $ 5,192 |
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Net property and equipment | $ 337,235 | $ 349,337 |
Citrus trees | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 258,924 | 258,949 |
Equipment and other facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 52,491 | 54,592 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,040 | 8,835 |
Depreciable properties | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 319,455 | 322,376 |
Less: accumulated depreciation and depletion | (87,670) | (82,443) |
Net property and equipment | 231,785 | 239,933 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Net property and equipment | $ 105,450 | $ 109,404 |
Property and Equipment, Net - Narrative (Details) - Citrus Groves - Discontinued Operations, Held-for-sale $ in Thousands |
Mar. 15, 2018
USD ($)
|
---|---|
Property, Plant and Equipment [Line Items] | |
Consideration for discontinued operation | $ 586 |
Loss on disposal of discontinued operation | $ 87 |
Long-Term Debt and Lines of Credit - Schedule of Lines of Credit (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Deferred Financing Costs, Net | $ 1,613 | $ 1,767 |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Lines of Credit | 0 | 0 |
Deferred Financing Costs, Net | 198 | 262 |
Line of Credit | RLOC | ||
Line of Credit Facility [Line Items] | ||
Lines of Credit | 0 | 0 |
Deferred Financing Costs, Net | 71 | 109 |
Line of Credit | WCLC | ||
Line of Credit Facility [Line Items] | ||
Lines of Credit | 0 | 0 |
Deferred Financing Costs, Net | $ 127 | $ 153 |
Long-Term Debt and Lines of Credit - Schedule of Future Maturities of Debt and Lines of Credit (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Debt Disclosure [Abstract] | ||
Due within one year | $ 5,250 | |
Due between one and two years | 10,950 | |
Due between two and three years | 10,975 | |
Due between three and four years | 14,825 | |
Due between four and five years | 10,755 | |
Due beyond five years | 124,300 | |
Long-term debt, net of current portion | $ 177,055 | $ 186,476 |
Long-Term Debt and Lines of Credit - Schedule of Interest Costs Expensed and Capitalized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Debt Disclosure [Abstract] | ||||
Interest expense | $ 2,188 | $ 2,223 | $ 6,682 | $ 6,924 |
Interest capitalized | 166 | 74 | 447 | 201 |
Total | $ 2,354 | $ 2,297 | $ 7,129 | $ 7,125 |
Long-Term Debt and Lines of Credit - Modification of Credit Agreements (Details) - USD ($) |
Jun. 30, 2018 |
Sep. 30, 2017 |
Dec. 01, 2016 |
Feb. 28, 2015 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Interest rate term loans | $ 177,055,000 | $ 186,476,000 | ||
Silver Nip Citrus | Loans Payable | ||||
Debt Instrument [Line Items] | ||||
Interest rate term loans | $ 7,000,000 | |||
Limited guaranty and security agreement | $ 8,000,000 | $ 7,000,000 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Ad valorem taxes | $ 1,482 | $ 2,648 |
Accrued interest | 1,185 | 1,165 |
Accrued employee wages and benefits | 2,197 | 1,320 |
Accrued dividends | 491 | 494 |
Current portion of deferred retirement obligations | 345 | 315 |
Accrued insurance | 92 | 166 |
Other accrued liabilities | 556 | 673 |
Total accrued liabilities | $ 6,348 | $ 6,781 |
Income Taxes (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2018 |
|
Operating Loss Carryforwards [Line Items] | ||
Tax benefit related to tax cuts and jobs act | $ 10,000,000 | |
Capital loss carryforward | 24,600,000 | |
Valuation allowance | $ 6,100,000 | |
Scenario, Forecast | ||
Operating Loss Carryforwards [Line Items] | ||
Statutory rate (in percentage) | 24.50% |
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Earnings Per Share [Abstract] | |||||
Net income attributable to Alico, Inc. common stockholders | $ 9,100 | $ 5,479 | $ 12,332 | $ 9,577 | |
Weighted average number of common shares outstanding - basic (in shares) | 8,228,000 | 8,293,000 | 8,243,000 | 8,315,000 | |
Dilutive effect of equity-based awards (in shares) | 96,000 | 71,000 | 71,000 | 25,000 | |
Weighted average number of common shares outstanding - diluted (in shares) | 8,324,000 | 8,364,000 | 8,314,000 | 8,340,000 | |
Net income per common shares attributable to Alico, Inc. common stockholders: | |||||
Basic (in dollars per share) | $ 1.11 | $ 0.66 | $ 1.50 | $ 1.15 | |
Diluted (in dollars per share) | $ 1.09 | $ 0.66 | $ 1.48 | $ 1.15 | |
Officer | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 750,000 |
Stockholders' Equity - Schedule of Stock Options Using Valuation Assumptions (Details) - Employee Stock Option |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Class of Stock [Line Items] | |
Expected Volatility | 32.19% |
Risk Free Rate | 24.50% |
Minimum | |
Class of Stock [Line Items] | |
Expected Term (in years) | 2 years 7 months |
Maximum | |
Class of Stock [Line Items] | |
Expected Term (in years) | 4 years |
Stockholders' Equity - Schedule of Treasury Stock Purchases and Issuance (Details) $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
shares
| |
Shares | |
Beginning Balance (in shares) | shares | 177,315 |
Ending Balance (in shares) | shares | 223,747 |
Cost | |
Beginning Balance | $ | $ 6,502 |
Ending Balance | $ | $ 7,854 |
Treasury Stock | |
Shares | |
Beginning Balance (in shares) | shares | 177,315 |
Purchased (in shares) | shares | 72,266 |
Ending Balance (in shares) | shares | 223,747 |
Cost | |
Beginning Balance | $ | $ 6,502 |
Purchased | $ | 2,215 |
Ending Balance | $ | $ 7,854 |
Treasury Stock | Issued to employees and directors | |
Shares | |
Issued to employees and directors (in shares) | shares | (25,834) |
Cost | |
Issued to employees and directors | $ | $ (863) |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Loss Contingencies [Line Items] | ||
Outstanding commitments | $ 2,678 | |
Financial Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Outstanding standby letters of credit | $ 10,300 | $ 10,300 |
Related Party Transaction - Clayton G. Wilson (Details) - Clayton G. Wilson - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jul. 31, 2017 |
Jul. 01, 2017 |
|
Related Party Transaction [Line Items] | ||||||
Payments for services and covenants | $ 750,000 | |||||
Lump sum payments | $ 200,000 | 200,000 | $ 275,000 | $ 275,000 | ||
Expense under consulting and non-compete agreement | $ 0 | $ 187,000 | $ 187,500 | $ 375,000 |
Related Party Transactions - Remy W. Trafelet, Henry R. Slack and George R. Brokaw (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
shares
|
---|---|
Related Party Transaction [Line Items] | |
Period of post-termination noncompetition and customer and employee nonsolicitation covenants | 12 months |
Remy W. Trafelet | |
Related Party Transaction [Line Items] | |
Annual base salary | $ 400 |
Payment to executives in cash | $ 400 |
Options granted in period (in shares) | shares | 300,000 |
Period equivalent to severance cost payment | 24 months |
Henry R. Slack | |
Related Party Transaction [Line Items] | |
Annual base salary | $ 250 |
Payment to executives in cash | $ 250 |
Options granted in period (in shares) | shares | 225,000 |
Period equivalent to severance cost payment | 18 months |
George R. Brokaw | |
Related Party Transaction [Line Items] | |
Annual base salary | $ 250 |
Payment to executives in cash | $ 250 |
Options granted in period (in shares) | shares | 225,000 |
Period equivalent to severance cost payment | 18 months |
Related Party Transactions - Ken Smith (Details) - Ken Smith - USD ($) |
9 Months Ended | ||
---|---|---|---|
Mar. 20, 2015 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Related Party Transaction [Line Items] | |||
Payments for services and covenants (up to) | $ 925,000 | ||
Expense under consulting and non-compete agreement | $ 0 | $ 100,000 | |
Consulting Services | |||
Related Party Transaction [Line Items] | |||
Consulting services and covenant period | 3 years | ||
Covenants | |||
Related Party Transaction [Line Items] | |||
Consulting services and covenant period | 2 years |
Related Party Transactions - Shared Services Agreement (Details) - TBCO - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Related Party Transaction [Line Items] | ||||
Payments for services and covenants | $ 618 | |||
Expense under shared services agreement | $ 149 | $ 223 | $ 443 | $ 443 |
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