Business Context and Reporting Period
This Form 8-K was filed by Alico, Inc. on March 3, 2005. The report details a significant operational milestone for Plant World, a greenhouse operation acquired by Alico in September 2004. Alico is an agribusiness company based in Florida with approximately 141,000 acres of real estate holdings, engaged in citrus production, cattle ranching, sugarcane, sod production, forestry, and real estate development.
Key Financial and Operational Metrics
The filing focuses on operational volume rather than financial statements. Key metrics include:
- Plant Deliveries: Over 62 million plants delivered in the latest six months of operation under Alico's ownership.
- Annual Capacity: The facility typically ranges between 80 and 120 million plants per year.
- Product Mix: Primarily vegetable transplants including tomatoes, bell peppers, and watermelons.
- Market Reach: Wholesale distribution to commercial farms in Florida and sales throughout the Southeastern United States.
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
The primary material change is the successful integration and performance of the newly acquired Plant World subsidiary. Since the acquisition in September 2004, the facility has exceeded management's expectations regarding production efficiency and volume within its first six months of operation.
Outlook and Management Commentary
CEO John R. Alexander stated that the renovation and management changes implemented by Alico have increased business efficiencies. Management expressed confidence in the facility's performance and expects continued production gains in the future. The company views the acquisition as a major supplier for commercial farming operations.
Investor Verification Checklist
- Verify the financial impact of the 62 million plant deliveries on Alico's consolidated revenue and margins in the next quarterly report.
- Confirm the total acquisition cost and any associated goodwill or intangible assets recorded for Plant World.
- Assess the sustainability of the "continued production gains" projected by management against seasonal agricultural risks.
- Review the company's broader real estate development strategy, as mentioned in the "About Alico" section, to understand potential shifts in business focus.