10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended March 31, 2016
		or

¨	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from
from____________________		to_________________________

Commission File Number: 0-261

Alico, Inc.

(Exact name of registrant as specified in its charter)

Florida	59-0906081
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10070 Daniels Interstate Court, Suite 100, Fort Myers, FL (Address of principal executive offices)	33913 (Zip Code)

Registrant’s telephone number, including area code: 239-226-2000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þYes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þYes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	þ
Non-accelerated filer	¨	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)  Yes ¨ No þ

There were 8,309,128 shares of common stock outstanding at April 27, 2016.

ALICO, INC.

FORM 10-Q

For the three and sixmonths ended March 31, 2016 and 2015

Part I - FINANCIAL INFORMATION
Item 1. Condensed Combined Consolidated Financial Statements (Unaudited)	1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3. Quantitative and Qualitative Disclosures About Market Risk	32
Item 4. Controls and Procedures	32
Part II - OTHER INFORMATION
Item 1. Legal Proceedings	33
Item 1A. Risk Factors	33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3. Defaults Upon Senior Securities	34
Item 4. Mine Safety Disclosures	34
Item 5. Other Information	34
Item 6. Exhibits	35
Signatures	36

Part 1 - FINANCIAL INFORMATION

Item 1. Condensed Combined Consolidated Financial Statements (Unaudited).

Index to Condensed Combined Consolidated Financial Statements

	Page
Condensed Combined Consolidated Statements of Operations and Comprehensive Income (Unaudited)	1
Condensed Combined Consolidated Balance Sheets (Unaudited)	2
Condensed Combined Consolidated Statement of Cash Flows (Unaudited)	3
Notes to Condensed Combined Consolidated Financial Statements (Unaudited)	4

ALICO, INC.

CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

(in thousands, except per share amounts)

	Three Months Ended March 31,						Six Months Ended March 31,
	2016			2015			2016			2015
Operating revenues:
Orange Co.	$	70,982		$	58,557		$	90,277		$	75,550
Conservation and Environmental Resources	644			309			1,651			1,145
Other Operations	263			1,146			565			2,387
Total operating revenues	71,889			60,012			92,493			79,082
Operating expenses:
Orange Co.	51,716			46,383			69,324			60,597
Conservation and Environmental Resources	581			623			2,141			1,368
Other Operations	77			1,330			147			2,169
Total operating expenses	52,374			48,336			71,612			64,134
Gross profit	19,515			11,676			20,881			14,948
General and administrative expenses	2,849			3,499			6,774			8,982
Income from operations	16,666			8,177			14,107			5,966
Other (expense) income:
Investment and interest income, net	—			—			—			2
Interest expense	(2,475		)	(2,257		)	(4,978		)	(3,636		)
Gain (loss) on sale of real estate	760			(27		)	902			13,471
Loss on extinguishment of debt	—			(17		)	—			(964		)
Impairment of asset held for sale	—			(541		)	—			(541		)
Other (expense) income, net	(125		)	18			(300		)	25
Total other (expense) income, net	(1,840		)	(2,824		)	(4,376		)	8,357
Income before income taxes	14,826			5,353			9,731			14,323
Provision for income taxes	6,102			1,127			4,027			4,890
Net income	8,724			4,226			5,704			9,433
Net loss attributable to noncontrolling interests	10			—			18			—
Net income attributable to Alico, Inc. common stockholders	8,734			4,226			5,722			9,433
Comprehensive income attributable to noncontrolling interests	—			—			—			—
Comprehensive income attributable to Alico, Inc. common stockholders	$	8,734		$	4,226		$	5,722		$	9,433
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic	$	1.05		$	0.51		$	0.69		$	1.21
Diluted	$	1.05		$	0.51		$	0.69		$	1.21
Weighted-average number of common shares outstanding:
Basic	8,286			8,272			8,294			7,815
Diluted	8,303			8,272			8,309			7,815
Cash dividends declared per common share	$	0.06		$	0.06		$	0.12		$	0.12

See accompanying notes to the condensed combined consolidated financial statements.

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ALICO, INC.

CONDENSED COMBINED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share and per share amounts)

	March 31,			September 30,
	2016			2015
ASSETS
Current assets:
Cash and cash equivalents	$	3,552		$	5,474
Accounts receivable, net	24,766			3,137
Inventories	46,421			58,273
Income tax receivable	2,088			2,088
Prepaid expenses and other current assets	1,312			1,791
Total current assets	78,139			70,763
Property and equipment, net	379,100			381,099
Goodwill	2,246			2,246
Deferred financing costs, net of accumulated amortization	2,598			2,978
Other non-current assets	1,769			3,002
Total assets	$	463,852		$	460,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	6,810		$	4,407
Accrued liabilities	10,817			13,815
Long-term debt, current portion	4,511			4,511
Income taxes payable	4,027			—
Deferred tax liability, current portion	151			151
Obligations under capital leases, current portion	277			277
Other current liabilities	359			974
Total current liabilities	26,952			24,135
Long-term debt	195,589			200,970
Lines of credit	5,000			—
Deferred tax liability	25,581			25,628
Deferred gain on sale	28,432			29,122
Deferred retirement obligations	4,170			4,134
Obligations under capital leases	588			588
Total liabilities	286,312			284,577
Commitments and Contingencies (Note 10)
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 8,302,063 and 8,325,580 shares outstanding at March 31, 2016 and September 30, 2015, respectively	8,416			8,416
Additional paid in capital	18,257			19,795
Treasury stock, at cost, 114,082 and 90,565 shares held at March 31, 2016 and September 30, 2015, respectively	(5,151		)	(3,962		)
Retained earnings	151,229			146,455
Total Alico stockholders' equity	172,751			170,704
Noncontrolling interest	4,789			4,807
Total stockholders' equity	177,540			175,511
Total liabilities and stockholders' equity	$	463,852		$	460,088

See accompanying notes to the condensed combined consolidated financial statements.

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ALICO, INC.

CONDENSED COMBINED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

(in thousands)

	Six Months Ended March 31,
	2016			2015
Net cash provided by (used in) operating activities:	$	12,138		$	(3,947	)
Cash flows from investing activities:
Acquisition of citrus businesses, net of cash acquired	—			(264,586		)
Proceeds on sale of sugarcane land	—			97,151
Purchases of property and equipment	(5,931		)	(5,235		)
Proceeds from disposals of property and equipment	—			620
Other	141			473
Net cash used in investing activities	(5,790		)	(171,577		)
Cash flows from financing activities:
Proceeds from term loans	—			182,500
Repayments on revolving line of credit	(45,132		)	(49,942		)
Borrowings on revolving line of credit	50,132			63,528
Repayment of term loan	—			(34,000		)
Principal payments on term loans	(5,381		)	(12,489		)
Contingent consideration paid	(3,750		)	—
Treasury stock purchases	(3,141		)	(512		)
Financing costs	—			(2,895		)
Dividends paid	(998		)	(885		)
Net cash (used in) provided by financing activities	(8,270		)	145,305
Net decrease in cash and cash equivalents	(1,922		)	(30,219		)
Cash and cash equivalents at beginning of the period	5,474			31,130
Cash and cash equivalents at end of the period	$	3,552		$	911
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amount capitalized	$	4,455		$	2,421
Cash paid for income taxes	$	47		$	5,200

See accompanying notes to the condensed combined consolidated financial statements.

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ALICO, INC.

NOTES TO CONDENSED COMBINED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. 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 121,000 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 - Orange Co. and Conservation and Environmental Resources. Financial results are presented based upon its three business segments (Orange Co., Conservation and Environmental Resources and Other Operations). 

Basis of Presentation

The Company has prepared the accompanying financial statements on a condensed combined consolidated basis. These accompanying unaudited condensed combined 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 and Combined Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015, and filed with the SEC on December 10, 2015.

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, 2016. All intercompany transactions and account balances between the consolidated and combined businesses have been eliminated.

Effective February 28, 2015, the Company completed the merger (“Merger”) with 734 Citrus Holdings, LLC (“Silver Nip Citrus”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with 734 Sub, LLC, a wholly owned subsidiary of the Company (“Merger Sub”), Silver Nip Citrus and, solely with respect to certain sections thereof, the equity holders of Silver Nip Citrus. The ownership of Silver Nip Citrus was held by 734 Agriculture, 74.89%, Mr. Clay Wilson, Chief Executive Officer of the Company, 5% and an entity controlled by Mr. Clay Wilson owned, 20.11%.

As the Company and Silver Nip Citrus were under common control at the time of the Merger, it is required under U.S. GAAP to account for this common control acquisition in a manner similar to the pooling of interest method of accounting. Under this method of accounting, Alico's Condensed Combined Consolidated Balance Sheets as of March 31, 2016 and September 30, 2015 reflect Silver Nip Citrus’ historical carryover basis in the assets and liabilities instead of reflecting the fair market value of the assets and liabilities. The Company has also retrospectively recast its financial statements to combine the operating results of the Company and Silver Nip Citrus from the date common control began, November 19, 2013.

Correction of an Immaterial Error in Prior Periods

During the six months ended March 31, 2016, the Company identified a $1,494,000 error related to an understatement of income tax expense for the fiscal year ended September 30, 2014. As previously noted, the Company and Silver Nip Citrus were under common control at the time of the Merger and accordingly we retrospectively recast our financial statements to combine the operating results of the Company and Silver Nip Citrus from the date common control began, November 19, 2013. Silver Nip Citrus had a September 30 year end for tax reporting purposes at the time of the Merger. The tax returns for the year ended September 30, 2014 and the short period ended February 28, 2015, date of the Merger, were prepared and filed in the second quarter of fiscal 2016. The Company reviewed the as filed tax returns in an effort to true-up the tax provision. During this review, the Company identified the error that impacts the Silver Nip Citrus financial condition and results of operations as of and for the period ended June 30, 2014.

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In accordance with Financial Accounting Standards Board Accounting Standards Codification 250, Accounting Changes and Error Corrections, we evaluated the materiality of the error from quantitative and qualitative perspectives. We concluded that the error was immaterial to the Company's prior period interim and annual consolidated and combined financial statements, and, accordingly no amendments to previously filed interim or annual periodic reports are required. Consequently, the Company will adjust for this error by revising its fiscal 2014 financial statements, when presented in future filings, by increasing income tax expense and its long term deferred tax liability by $1,494,000. The Company recognized the cumulative effect of the error on periods prior to those presented herein by increasing long term deferred tax liability and reducing additional paid-in capital by $1,494,000 for the fiscal year ended September 30, 2015. The pre-merger net earnings of Silver Nip Citrus are classified as additional paid-in capital in the accompanying Condensed Combined Consolidated Balance Sheets as of March 31, 2016 and September 30, 2015.

Change in Fiscal Year of Subsidiary

Silver Nip Citrus’ fiscal year end was previously June 30, and their financial condition and results of operations as of and for the fiscal years ended June 30, 2015 and 2014 were included in the financial condition and results of operations of the Company as of and for the fiscal years ended September 30, 2015 and 2014, respectively. Effective October 1, 2015, the fiscal year end for Silver Nip Citrus was changed to September 30 to reflect that of the Company. Accordingly, the Company’s financial condition as of March 31, 2016 and September 30, 2015 now includes the financial condition of Silver Nip Citrus as of March 31, 2016 and September 30, 2015, respectively, and the Company’s results of operations for the three and six months ended March 31, 2016 and 2015 now includes the Silver Nip Citrus results of operations for the three and six months ended March 31, 2016 and 2015, respectively. The impact of this change was not material to the Condensed Combined Consolidated Financial Statements with an approximate $493,000 decrease in total assets and an approximate net loss of $594,000 for the transition period related to this change included in Stockholders' Equity at October 1, 2015.

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. For the fiscal year ended September 30, 2015, the Company’s CODM assessed performance and allocated resources based on five operating segments: Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Other Operations. The former Citrus Groves and Agricultural Supply Chain Management segments have been combined in Orange Co. and, as a result of the disposition of the Company's sugarcane land in fiscal year 2015, it is no longer involved in sugarcane, and the Improved Farmland segment is no longer material to its business and has been combined in Other Operations. Effective October 1, 2015, the Company’s CODM will assess performance and allocate resources based on three operating segments: Orange Co., Conservation and Environmental Resources and Other Operations. Disclosures related to the three and six months ended March 31, 2015 have been revised to be consistent with the current operating segment structure.

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. The Financial Statements represent the Condensed Combined Consolidated Balance Sheets, Statements of Operations and Comprehensive Income and Statements of Cash Flows of Alico, Inc. and its subsidiaries. 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 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

5

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.

Noncontrolling Interest in Consolidated Affiliate

The Financial Statements include all assets and liabilities of the less-than-100%-owned affiliate 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 $37,171 and $14,831 for the six months ended March 31, 2016 and 2015, of which 51% is attributable to the Company.

Business Combinations

The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in FASB ASC No. 805, “Business Combinations”, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed and any noncontrolling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and noncontrolling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with FASB ASC No. 805, the Company recognizes and measures goodwill, if any, as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired.

When Alico acquires a business from an entity under common control, whereby the companies are ultimately controlled by the same party, or parties, both before and after the transaction, it is treated similarly to the pooling of interest method of accounting. The assets and liabilities are recorded at the transferring entity’s historical cost instead of reflecting the fair market value of assets and liabilities.

Recent Accounting Pronouncements

In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present all deferred tax liabilities and assets as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted. The standard can be applied either prospectively to all deferred tax liabilities and assets, or retrospectively to all periods presented. As this standard impacts presentation only, the adoption of ASU 2015-17 is not expected to have an impact on the Company's financial condition, results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01 “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" (“ASU 2016-01”). This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments, whereby estimated fair value may be measured at cost, and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, and it will become effective for Alico at the beginning of its first quarter of fiscal 2019.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)." This guidance will require entities that enter into leases as a lessee to recognize right-of-use assets and lease liabilities for those leases classified as operating leases under previous GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, and it will become effective for Alico at the beginning of its first quarter of fiscal 2020.

In March 2016, the FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." The amendment clarifies the implementation guidance for principal versus agent considerations as contained in ASU No. 2014-09, Revenue from Contracts with Customers. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to a customer. ASU No. 2016-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption of ASU No. 2016-08 is permitted but not before December 15, 2016. The Company is currently evaluating the impact of ASU No. 2016-08 on its consolidated financial statements.

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In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is  currently evaluating the new guidance to determine the impact it may have its consolidated financial statements.

Seasonality

The Company is primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of its fiscal year generally produce the majority of its annual revenue, and working capital requirements are typically greater in the first and fourth quarters of the fiscal year. The results of the reported periods herein are not necessarily indicative of the results for any other interim periods or the entire fiscal year.

Note 2. Inventories

Inventories consist of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,		September 30,
	2016		2015
Unharvested fruit crop on the trees	$	38,431	$	52,497
Beef cattle	2,279		1,612
Citrus tree nursery	3,107		2,854
Other	2,604		1,310
Total inventories	$	46,421	$	58,273

The Company records its inventory at the lower of cost or net realizable value. For the three and six months ended March 31, 2016 and 2015 the Company did not record any adjustments to reduce inventory to net realizable value. 

Note 3. Property and Equipment, Net

Property and equipment, net consists of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,			September 30,
	2016			2015
Citrus trees	$	249,188		$	247,488
Equipment and other facilities	58,454			56,200
Buildings and improvements	21,391			21,259
Breeding herd	12,546			11,924
Total depreciable properties	341,579			336,871
Less accumulated depreciation and depletion	(77,672		)	(70,200		)
Net depreciable properties	263,907			266,671
Land and land improvements	115,193			114,428
Net property and equipment	$	379,100		$	381,099

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Note 4. Acquisitions and Dispositions

Acquisition of Orange-Co

On December 2, 2014, the Company completed the acquisition of certain citrus and related assets of Orange-Co, LP (“Orange-Co”), including 51% of the ownership interests of Citree, pursuant to an Asset Purchase Agreement, which is referred to as the Orange-Co Purchase Agreement, dated as of December 1, 2014. The assets the Company purchased include approximately 20,263 acres of citrus groves in DeSoto and Charlotte Counties, Florida, which comprise one of the largest contiguous citrus grove properties in the state of Florida. Total assets acquired were approximately $277,792,000, net of $2,060,000 in cash acquired and approximately $4,838,000 in fair value attributable to noncontrolling interest in Citree, including: (i) $147,500,000 in initial cash consideration funded from the proceeds of the sugarcane disposition and new term loan debt; (ii) up to $7,500,000 in additional cash consideration to be released from escrow in equal parts, subject to certain limitations, on December 1, 2015 and June 1, 2016; (iii) the refinancing of Orange-Co’s outstanding debt including approximately $92,290,000 in term loan debt and a working capital facility of approximately $27,857,000 and (iv) the assumption of certain other liabilities totaling approximately $4,705,000. On December 1, 2014, Alico deposited an irrevocable standby letter of credit issued by Rabo Agrifinance, Inc. in the aggregate amount of $7,500,000 into an escrow account to fund the additional cash consideration. On December 1, 2015, the Company paid $3,750,000 of additional consideration on the Orange-Co acquisition, as contemplated by the Orange-Co Purchase Agreement. Alico's $7,500,000 irrevocable letter of credit securing the payment of the additional consideration was extended and modified to reflect the remaining amount of $3,750,000, securing the final payment due on June 1, 2016, subject to certain limitations. The final cash consideration payment is recorded in accrued liabilities in current liabilities in the Condensed Combined Consolidated Balance Sheet as of March 31, 2016.

This acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while transaction and integration costs associated with the acquisition were expensed as incurred. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and noncontrolling interests is recognized as goodwill. All goodwill recognized will be deductible for income tax purposes.

On the acquisition date, the initial accounting for the business combination was not complete, and the total assets acquired and liabilities assumed were based on preliminary information and were subject to adjustment as new information was obtained. As a result of refinements to the preliminary purchase price allocation, an adjustment to the fair value of total assets acquired resulted in an increase of approximately $1,000,000 during the fiscal year ended September 30, 2015.

For the six months ended March 31, 2015 the Company incurred approximately $3,037,000 in professional and legal costs in connection with the Orange-Co acquisition. These costs are included in general and administrative expenses in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income.

The following table summarizes the final allocation of the acquisition cost to the assets acquired and liabilities assumed at the date of acquisition, based on their estimated fair values:

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Asset acquisition
(in thousands)
	Amount
Assets:
Accounts receivable	$	888
Other current assets	845
Inventories	35,562
Property and equipment	—
Citrus Trees	164,123
Land	63,395
Equipment and other facilities	13,431
Goodwill	2,246
Other assets	2,140
Total assets, net of cash acquired	$	282,630
Liabilities:
Accounts payable and accrued liabilities	$	4,205
Debt	500
Contingent consideration	7,500
Total liabilities assumed	$	12,205
Assets acquired less liabilities assumed	$	270,425
Less: fair value attributable to noncontrolling interest	(4,838		)
Total purchase consideration	$	265,587
Cash proceeds from sugarcane disposition	$	97,126
Working capital line of credit	27,857
Term loans	140,604
Total purchase consideration	$	265,587

Sugarcane Land

On November 21, 2014, the Company completed the sale of approximately 36,000 acres of land used for sugarcane production and land leasing in Hendry County, Florida to Global Ag Properties, LLC (“Global”) for approximately $97,900,000 in cash. It had previously leased approximately 30,600 of these acres to United States Sugar Corporation (the “USSC Lease”). The USSC Lease was assigned to Global in conjunction with the land sale.

Net cash proceeds from the sugarcane land sale of approximately $97,126,000 were deposited with a Qualified Intermediary in anticipation of the Orange-Co asset acquisition in a tax deferred like-kind exchange, pursuant to Internal Revenue Code Section 1031.

The sales price is subject to post-closing adjustments over a ten (10)-year period. The Company realized a gain of approximately $42,753,000 on the sale. Initially, $29,140,000 of the gain was deferred due to the Company’s continuing involvement in the property pursuant to a post-closing agreement and the potential price adjustments. The deferral represents the Company’s estimate of the maximum exposure to loss as a result of the continuing involvement. A net gain of approximately $13,613,000 was recognized on the sale and is recognized in Other income (expense) in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income for the six months ended March 31, 2015.

9

On May 1, 2015, the Company made a payment of $1,347,000 to Global pursuant to the sales contract. USSC’s lease is tied to the market price of sugar, and this payment is required annually in advance, to supplement the lease paid by USSC in the event that the sugar prices are below certain thresholds. Approximately $463,000 of this payment is included in prepaid expenses and other current assets in the Condensed Combined Consolidated Balance Sheet as of March 31, 2016, and the Company has recognized approximately $332,000 in interest expense and approximately $760,000 of the deferred gain for the three months ended March 31, 2016, and approximately $696,000 in interest expense and approximately $902,000 of the deferred gain for the six months ended March 31, 2016.

As a result of the disposition of its sugarcane land, the Company is no longer involved in sugarcane operations and, as of November 21, 2014, the Improved Farmland segment was no longer material to its business; however, the sugarcane operation has not been classified as a discontinued operation due to the post-closing adjustments, amongst other involvement, as described above. Effective October 1, 2015, the Improved Farmland reporting segment is now included in the Other Operations reporting segment.

Note 5. Common Control Acquisition

The Company completed the Merger with Silver Nip Citrus on February 28, 2015 (see Note 1, “Basis of Presentation - Description of Business”). Silver Nip Citrus owns approximately 7,400 acres of land, consisting primarily of citrus groves, in seven Florida counties (Polk, Hardee, Osceola, Martin, Highlands, Charlotte and Collier). Substantially all of its revenues derive from citrus operations. As the Company and Silver Nip Citrus were under common control at the time of the Merger, the results of operations have been combined for the Company and Silver Nip Citrus from the date common control began, November 19, 2013.

Separate results for the Company and Silver Nip Citrus for the three and six months ended March 31, 2015 and are as follows:

(in thousands except per share amounts)
	Three months ended						Six months ended
	March 31, 2015						March 31, 2015
			Silver Nip						Silver Nip
	Alico		Citrus		Total		Alico		Citrus		Total
Operating revenue	$	52,210	$	7,802	$	60,012	$	68,368	$	10,714	$	79,082
Gross profit	$	9,951	$	1,725	$	11,676	$	13,095	$	1,853	$	14,948
Income from operations	$	6,623	$	1,554	$	8,177	$	4,339	$	1,627	$	5,966
Net income	$	3,363	$	863	$	4,226	$	9,139	$	294	$	9,433
Earnings per common share:
Basic	$	0.41	$	0.10	$	0.51	$	1.17	$	0.04	$	1.21
Diluted	$	0.41	$	0.10	$	0.51	$	1.17	$	0.04	$	1.21

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Note 6. Long-Term Debt and Lines of Credit

	March 31,		September 30,
	2016		2015
	(in thousands)
Long-term debt, net of current portion:
Metropolitan Life Insurance Company and New England Life Insurance Company fixed rate term loans in the original principal amount of $125,000,000: the loans bear interest at the rate of 4.15% per annum. The loans are collateralized by real estate and mature in November 2029.	$	108,438	$	111,563
Metropolitan Life Insurance Company and New England Life Insurance Company variable rate term loans in the original principal amounts of $57,500,000: the variable interest rate was approximately 2.12% per annum as of March 31, 2016. The loans are collateralized by real estate and mature in November 2029.	53,906		55,344
Metropolitan Life Insurance Company term loan: the loan bears interest at the rate of 5.30% per annum as of March 31, 2016. A final advance of $2,500,000 was made on April 27, 2016. The interest rate was adjusted to 5.28% on the date of the final advance. The loan is collateralized by real estate and matures in February 2029.	2,500		2,500
Prudential Mortgage Capital Company, LLC fixed rate term loans: the loans bear interest at the rate of 5.35% per annum. The loans are collateralized by real estate and mature in June 2033.	24,770		25,350
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.85% per annum. The loan is collateralized by real estate and matures in September 2021.	5,225		5,335
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.45% per annum as of March 31, 2016. The loan is collateralized by real estate and matures in September 2039.	5,225		5,335
Note payable to a financing company collateralized by equipment and maturing in December 2016.	36		54
	200,100		205,481
Less current portion	4,511		4,511
Long-term debt	$	195,589	$	200,970

	March 31,		September 30,
	2016		2015
	(in thousands)
Lines of Credit:
Metropolitan Life Insurance Company and New England Life Insurance Company revolving line of credit: this $25,000,000 line bears interest at a variable rate which was 2.12% per annum as of March 31, 2016. The line is collateralized by real estate and matures in November 2019. Availability under the line was $20,000,000 as of March 31, 2016.	$	5,000	$	—
Rabo Agrifinance, Inc. working capital line of credit: this $70,000,000 line bears interest at a variable rate which was 2.19% per annum as of March 31, 2016. The line is collateralized by current assets and certain personal property and matures in November 2016. Availability under the line was approximately $56,000,000 as of March 31, 2016.	—		—
Lines of Credit	$	5,000	$	—

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Future maturities of debt and lines of credit as of March 31, 2016 are as follows:

(in thousands)
Due within one year	$	4,511
Due between one and two years	8,250
Due between two and three years	10,825
Due between three and four years	15,925
Due between four and five years	10,975
Due beyond five years	154,614
Total future maturities	$	205,100

Debt Refinancing 

The Company refinanced its outstanding debt obligations on December 3, 2014 in connection with the Orange-Co acquisition (see Note 4 “Acquisitions and Dispositions”). The new credit facilities initially included $125,000,000 in fixed interest rate term loans, $57,500,000 in variable interest rate term loans, 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 new term loans and RLOC are secured by approximately 39,300 gross acres of citrus groves and 14,000 gross acres of farm and ranch land. The WCLC is secured by the Company’s current assets and certain other personal property owned by the Company.

The new term loans are subject to quarterly principal payments of $2,281,250, and mature November 1, 2029. The fixed-rate term loans bear interest at 4.15% per annum, and the variable-rate term loans bear interest at a rate equal to 90 day LIBOR plus 150 basis points (the “LIBOR spread”). The LIBOR spread is subject to adjustment by the lender on May 1, 2017, and every two years thereafter until maturity. Interest on the term loans is payable quarterly.

The interest rate on the variable rate term loans was 2.12% per annum as of March 31, 2016. 

The Company may prepay up to $8,750,000 of the 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 and remains available to reduce future mandatory principal payments when the Company elects to do so. The 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 is subject to adjustment by the lender on May 1, 2017, and 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 2.12% per annum as of March 31, 2016. Availability under the RLOC was $20,000,000 as of March 31, 2016.

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 2.19% per annum as of March 31, 2016. The WCLC facility matures November 1, 2016. Availability under the WCLC was approximately $56,000,000 as of March 31, 2016.

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.

The WCLC agreement provides for Rabo to issue up to $20,000,000 in letters of credit on the Company’s behalf. As of March 31, 2016, there was approximately $13,984,000 in outstanding letters of credit, which correspondingly reduced the Company's availability under the line of credit. There was no outstanding balance on the WCLC as of March 31, 2016.

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The Company capitalized approximately $2,834,000 of debt financing costs related to the refinancing. These costs, together with approximately $339,000 of costs related to the retired debt, will be amortized to interest expense over the applicable terms of the loans. The unamortized balance of deferred financing costs related to the financing was approximately $2,178,000 at March 31, 2016.

The Company recognized a loss on extinguishment of debt of approximately $964,000 related to the refinancing for the six months ended March 31, 2015. The loss on extinguishment of debt is included in Other income (expense) in the Condensed Combined Consolidated Statement of Operations and Comprehensive Income for the three months ended March 31, 2015.

The new 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 $161,600,000 for the year ending September 30, 2016, (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. As of March 31, 2016, the Company was in compliance with all of the financial covenants.

The credit facilities also include a Met Life term loan secured by real estate owned by Citree. This is a $5,000,000 credit facility that initially bore interest at 5.49% 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%. The loan matures in February 2029. The unamortized balance of deferred financing costs related to this loan was approximately $55,000 at March 31, 2016.

Silver Nip Citrus Debt

Silver Nip Citrus has various loans payable to Prudential Mortgage Capital Company, LLC (“Prudential”) as described below.

There are two fixed-rate term loans, with an original combined balance of $27,550,000, bearing interest at 5.35% per annum. Principal of $290,000 is payable quarterly, together with accrued interest. The Company may prepay up to $5,000,000 of principal without penalty. On February 15, 2015, Silver Nip Citrus made a prepayment of $750,000. The loans are collateralized by real estate in Collier, Hardee, Highlands, Martin, Osceola and Polk Counties, Florida.

Silver Nip Citrus entered into two 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, while the other bears interest at 3.45% per annum. The note with an interest rate of 3.85% per annum 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.

Silver Nip Citrus had a $6,000,000 revolving line of credit with Prudential. This line of credit was paid in full and terminated on April 28, 2015.

The unamortized balance of deferred financing costs related to the Silver Nip Citrus debt was approximately $365,000 at March 31, 2016.

The Silver Nip Citrus facilities are subject to a financial debt covenant requiring a current ratio of at least 1.50 to 1.00, measured at the end of each fiscal year. Silver Nip Citrus was in compliance with this covenant as of June 30, 2015, the most recent measurement date.

The Silver Nip Citrus facilities are personally guaranteed by George Brokaw, Remy Trafelet and Clayton Wilson.

Modification of Credit Agreements

During the six months ended March 31, 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.

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This modification required the amendment of various Prudential and Rabo loan documents and mortgages.

Interest costs expensed and capitalized were as follows:

(in thousands)
	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Interest expense	$	2,475	$	2,257	$	4,978	$	3,636
Interest capitalized	38		159		81		212
Total	$	2,513	$	2,416	$	5,059	$	3,848

Note 7. 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 six months ended March 31, 2016 and 2015, basic and diluted earnings per common share were as follows:

(in thousands except per share amounts)
	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Net income attributable to Alico, Inc. common stockholders	$	8,734	$	4,226	$	5,722	$	9,433
Weighted average number of common shares outstanding - basic	8,286		8,272		8,294		7,815
Dilutive effect of equity awards	17		—		15		—
Weighted average number of common shares outstanding - diluted	8,303		8,272		8,309		7,815
Net income per common shares attributable to Alico, Inc. common stockholders:
Basic	$	1.05	$	0.51	$	0.69	$	1.21
Diluted	$	1.05	$	0.51	$	0.69	$	1.21

Note 8. Segment Information

Segments

Operating segments are defined in ASC Topic 280, "Segment Reporting" 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 are evaluated regularly by the Company’s CODM in deciding how to assess performance and allocate resources. For the fiscal year ended September 30, 2015, the Company’s CODM assessed performance and allocated resources based on five operating segments: Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Other Operations. The former Citrus Groves and Agricultural Supply Chain Management segments have been combined in Orange Co. and, as a result of the disposition of its sugarcane land in fiscal year 2015, the Company is no longer involved in sugarcane, and the Improved Farmland segment is no longer material to its business and has been combined in Other Operations. Effective October 1, 2015, the Company’s CODM will assess performance and allocate resources based on three operating segments: Orange Co., Conservation and Environmental Resources and Other Operations.

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The Company manages its land based upon its primary usage, and reviews its performance based upon two primary classifications: Orange Co. and Conservation and Environmental Resources.  In addition, Other Operations include leasing mines and oil extraction rights to third parties, as well as leasing improved farmland to third parties.  

Total revenues represent sales to unaffiliated customers, as reported in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income. Intersegment sales and transfers are accounted for by the Company as if the sales or transfers were to third parties at current market prices. 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.  All intercompany transactions between the segments have been eliminated.

Information by business segment is as follows:

(in thousands)	Three Months Ended March 31,					Six Months Ended March 31,
	2016		2015			2016			2015
Revenues:
Orange Co.	$	70,982	$	58,557		$	90,277		$	75,550
Conservation and Environmental Resources	644		309			1,651			1,145
Other Operations	263		1,146			565			2,387
Total revenues	71,889		60,012			92,493			79,082
Operating expenses:
Orange Co.	51,716		46,383			69,324			60,597
Conservation and Environmental Resources	581		623			2,141			1,368
Other Operations	77		1,330			147			2,169
Total operating expenses	52,374		48,336			71,612			64,134
Gross profit:
Orange Co.	19,266		12,174			20,953			14,953
Conservation and Environmental Resources	63		(314		)	(490		)	(223		)
Other Operations	186		(184		)	418			218
Total gross profit	$	19,515	$	11,676		$	20,881		$	14,948
Depreciation, depletion and amortization:
Orange Co.	$	3,391	$	3,152		$	6,748		$	5,098
Conservation and Environmental Resources	297		242			529			485
Other Operations	94		270			200			398
Other Depreciation, Depletion and Amortization	254		(159		)	567			508
Total depreciation, depletion and amortization	$	4,036	$	3,505		$	8,044		$	6,489

(in thousands)	March 31,		September 30,
	2016		2015
Assets:
Orange Co.	$	418,191	$	392,329
Conservation and Environmental Resources	14,418		13,779
Other Operations	21,235		31,468
Other Corporate Assets	10,008		22,512
Total Assets	$	463,852	$	460,088

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Note 9. 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). Stock-based compensation expense for the Board of Director fees and Named Executive Officers was approximately and $251,000 and $496,000 for the three and six months ended March 31, 2016, respectively, and $254,000 and $509,000 for the three and six months ended March 31, 2015, respectively. Stock compensation expense is recognized in corporate, general and administrative expenses in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income.

In fiscal year 2015, the Board of Directors authorized the repurchase of up to 170,000 shares of the Company’s common stock beginning March 25, 2015, and continuing through December 31, 2016 (the "2015 Authorization"). The stock repurchases 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 six months ended March 31, 2016, the Company had purchased the 78,446 shares it had remaining under the 2015 Authorization.

The following table illustrates the Company’s treasury stock purchases and issuances for the six months ended March 31, 2016:

(in thousands, except share amounts)
	Shares		Cost
Balance as of September 30, 2015	90,565		$	3,962
Purchased	78,446		3,141
Issued to Directors	(22,006	)	(469		)
Issued to former Silver Nip Citrus equity holders	(32,923	)	(1,483		)
Balance as of March 31, 2016	114,082		$	5,151

In fiscal year 2016, the Board of Directors authorized the repurchase of up to 50,000 shares of the Company’s common stock beginning February 18, 2016 and continuing through February 17, 2017 (the "2016 Authorization"). The stock repurchases will be made through open market transactions at times and in such amounts as the Company’s broker determine subject to the provisions of SEC Rule 10b-18. The Company also adopted a Rule 10b5-1 share repurchase plan under the Securities Exchange Act of 1934 (the “Plan”) in connection with its share repurchase authorization. The Plan allows the Company to repurchase its shares at times when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. For the six months ended March 31, 2016, the Company did not purchase any shares in accordance with the 2016 Authorization and has available to purchase 50,000 shares in accordance with the 2016 Authorization.

Note 10. Commitments and Contingencies

Letters of Credit

The Company has outstanding standby letters of credit in the total amount of approximately $13,984,000 and $17,498,500 at March 31, 2016 and September 30, 2015, respectively, to secure its various contractual obligations.

Legal Proceedings

On March 11, 2015 a putative stockholder class action lawsuit captioned Shiva Y. Stein v. Alico, Inc., et al., No. 15-CA-000645 (the “Stein lawsuit”) was filed in the Circuit Court of the Twentieth Judicial District in and for Lee County, Florida, against Alico, Inc. (“Alico”), its current and certain former directors, 734 Citrus Holdings, LLC d/b/a Silver Nip Citrus, 734 Investors, LLC (“734 Investors”), 734 Agriculture, LLC (“734 Agriculture”) and 734 Sub, LLC (“734 Sub”) in connection with the acquisition of Silver Nip by Alico (the “Acquisition”). The complaint alleges that Alico’s directors at the time of the Acquisition, 734 Investors, and 734 Agriculture, breached fiduciary duties to Alico stockholders in connection with the Acquisition, and that Silver Nip and 734 Sub aided and abetted such breaches. The lawsuit seeks, among other things, monetary and equitable relief, costs, fees (including attorneys’ fees) and expenses.

On May 6, 2015 a putative stockholder class action and derivative lawsuit captioned Ruth S. Dimon Trust v. George R. Brokaw, et al., No. 15-CA-001162 (the “Dimon lawsuit”) was filed in the Circuit Court of the Twentieth Judicial District in and for Lee County, Florida, against Alico, its current directors, Silver Nip Citrus, 734 Investors and 734 Agriculture, in connection with the Acquisition of Silver Nip Citrus by Alico. The complaint alleges claims for breach of fiduciary duty, gross mismanagement, waste

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of corporate assets and tortious interference with contract against Alico’s directors, unjust enrichment against three of the directors and aiding and abetting breach of fiduciary duty against Silver Nip Citrus, 734 investors and 734 Agriculture. The lawsuit seeks, among other things, rescission of the Acquisition, an injunction prohibiting certain payments to Silver Nip Citrus members, unspecified damages, disgorgement of profits, costs, fees (including attorneys’ fees) and expenses.

On July 17, 2015 the plaintiffs in the Stein and Dimon lawsuits filed a stipulation and proposed order consolidating their cases for all purposes under the caption, In re Alico, Inc. Shareholder Litigation, Master File No. 15-CA-000645 (the “Consolidated Action”) and seeking the appointment of a lead plaintiff and lead and liaison counsel. The court entered that proposed order on July 21, 2015.

On October 16, 2015, the lead plaintiff in the Consolidated Action reported to the Court that the parties reached an agreement in principle to settle the Consolidated Action and other claims related to the Acquisition and that they were in the process of formally documenting their agreements. The proposed settlement contemplates that Alico will adopt certain changes to its corporate governance practices, policies and procedures concerning related party transactions, that the Consolidated Action will be dismissed and that all claims that were or could have been asserted challenging any aspect of the Acquisition will be released. On March 31, 2016, the parties entered into a Stipulation of Settlement.  The parties filed an Amended Stipulation of settlement with the Court on April 22, 2016.

On April 28, 2016, the Court entered an order preliminarily approving the settlement and providing for notice to relevant Alico shareholders.  The settlement remains subject to final judicial approval following notice to the relevant Alico shareholders and a settlement hearing at which the Court will consider the fairness, reasonableness and adequacy of the settlement. In connection with the proposed settlement, the parties contemplate that plaintiffs' counsel will seek an award of attorneys' fees and expenses. There can be no assurance that the Court will approve the settlement.

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 current legal proceedings to which the Company is a party to or of which any of its property is subject to that it believes will have a material adverse effect on its business financial position or results of operations.    

Note 11. Related Party Transactions

Silver Nip Citrus Merger Agreement

Effective February 28, 2015, the Company completed the merger (“Merger”) with 734 Citrus Holdings, LLC (“Silver Nip Citrus”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with 734 Sub, LLC, a wholly owned subsidiary of the Company (“Merger Sub”), Silver Nip Citrus and, solely with respect to certain sections thereof, the equity holders of Silver Nip Citrus. The ownership of Silver Nip Citrus was held by 734 Agriculture, 74.89%, Mr. Clay Wilson, Chief Executive Officer of the Company, 5% and an entity controlled by Mr. Clay Wilson owned, 20.11%.

734 Agriculture has control over both Silver Nip Citrus and the Company, and therefore the Merger was treated as a common control acquisition.

At closing of the Merger, Merger Sub merged with and into Silver Nip Citrus, with Silver Nip Citrus and its affiliates surviving the Merger as wholly owned subsidiaries of the Company. Pursuant to the Merger Agreement, at closing, the Company issued 923,257 shares of the Company’s common stock, par value $1.00 per share, to the holders of membership interests in Silver Nip Citrus. Silver Nip Citrus’ outstanding net indebtedness at the closing of the Merger was approximately $40,278,000, and other liabilities totaled approximately $6,952,000. The Company acquired assets at with a book value of approximately $65,739,000, and total net assets of approximately $18,470,000. The shares issued were recorded at the carrying amount of the net assets transferred. The closing price of the Company's common stock on February 27, 2015 was $45.67.

Through March 31, 2016, the former holders of membership interests (the "Members") in Silver Nip Citrus earned and were issued an additional 148,705 shares of the Company’s common stock pursuant to the Merger Agreement. The additional purchase consideration was based on the value of the proceeds received by the Company from the sale of citrus fruit harvested on Silver Nip Citrus’s citrus groves for 2014-2015 citrus harvest season. The Members are not expected to receive any additional Company common shares related to the 2014-2015 harvest season.

For the six months ended March 31, 2015 the Company incurred approximately $811,000 in professional and legal costs in connection with the Merger. These costs are included in corporate, general and administrative expenses in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income for the six months ended March 31, 2015.

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JD Alexander

On November 6, 2013, JD Alexander tendered his resignation as Chief Executive Officer, and as an employee of the Company, subject to and effective immediately after the Closing of the Share Purchase transaction on November 19, 2013. Mr. Alexander’s resignation included a waiver of any rights to any payments under his Change-in-Control Agreement with the Company. On November 6, 2013, the Company and Mr. Alexander also entered into a Consulting and Non-Competition Agreement under which (i) Mr. Alexander will provide consulting services to the Company during the two-year period after the Closing, (ii) Mr. Alexander 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 Closing, and (iii) the Company paid Mr. Alexander for such services and covenants $2,000,000 in twenty-four monthly installments. The Company expensed approximately $0 and $250,000 under the Consulting and Non-Competition Agreement for the three months ended March 31, 2016 and 2015, respectively, and expensed approximately $167,000 and $500,000 for the six months ended March 31, 2016 and 2015, respectively.

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 will provide 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 will pay Mr. Smith up to $1,225,000 for such services and covenants. The Company’s business operations previously managed by Mr. Smith are now managed by Clay Wilson, Chief Executive Officer of Alico. The Company expensed approximately $50,000 and $0 under the Consulting and Non-Competition Agreement for the three months ended March 31, 2016 and 2015, respectively, and approximately $100,000 and $0 for the six months ended March 31, 2016 and 2015, respectively.

W. Mark Humphrey

On June 1, 2015, W. Mark Humphrey tendered his resignation as Senior Vice President and Chief Financial Officer, and as an employee of the Company. On June 1, 2015, the Company and Mr. Humphrey entered into a Separation and Consulting Agreement under which (i) Mr. Humphrey will provide consulting services to the Company for a one-year period after his resignation, and (ii) Mr. Humphrey will be entitled to the following benefits: (a) $100,000 in cash in a lump sum and (b) a consulting fee of $350,000 payable monthly during the period commencing on his resignation date and ending on the first anniversary of his resignation date. The Company expensed approximately $92,000 and $180,000 under the Separation and Consulting Agreement for the three and six months ended March 31, 2016. On June 1, 2015 the Company appointed John E. Kiernan to serve as Senior Vice President and Chief Financial Officer. Effective September 1, 2015, Mr. Humphrey was appointed to serve as Senior Vice President and Chief Accounting Officer, and will continue to receive monthly payments under The Consulting Agreement through the first anniversary of his resignation date.

Shared Services Agreement

The Company has a shared services agreement with Trafelet Brokaw & Co., LLC (“TBCO”), whereby the Company will reimburse TBCO for use of office space and various administrative and support services. The annual cost of the office and services is approximately $400,000. The agreement will expire in June 2016. The Company expensed approximately $99,000 and $0 under the Shared Services Agreement for the three months ended March 31, 2016 and 2015, respectively, and approximately $198,000 and $0 for the six months ended March 31, 2016 and 2015, respectively.

18

Note 12. Accrued Liabilities

Accrued Liabilities consist of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,		September 30,
	2016		2015
Ad valorem taxes	$	1,020	$	2,640
Accrued interest	1,218		1,155
Accrued employee wages and benefits	240		427
Inventory received but not invoiced	2,909		581
Accrued dividends	498		501
Current portion of deferred retirement obligations	342		342
Additional purchase price consideration	3,750		7,500
Other accrued liabilities	840		669
Total accrued liabilities	$	10,817	$	13,815

19

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with the accompanying Consolidated and Combined Financial Statements and related Notes thereto. Additional context can also be found in Alico's Annual Report on Form 10-K for the fiscal year ended September 30, 2015, as filed with the Securities and Exchange Commission (“SEC”) on December 10, 2015.

Cautionary Statement Regarding Forward-Looking Information

We provide forward-looking information in this Quarterly Report on Form 10-Q, particularly in this Management’s Discussion and Analysis and Results of Operations, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulation and rules; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and their by-products, increased pressure from disease, insects and other pests; disruption of water supplies or changes in water allocations; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest rates; availability of financing for land development activities and other growth opportunities; onetime events; acquisitions and divestitures including our ability to achieve the anticipated results of the Orange-Co acquisition and Silver Nip Citrus merger; seasonality; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in agricultural land values; changes in dividends; and market and pricing risks due to concentrated ownership of stock. These assumptions are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those Risks Factors described in our Annual Report on Form 10-K for the year ended September 30, 2015 and our Quarterly Reports on Form 10-Q.

Business Overview

Business Description

Alico, Inc. ("Company") generates operating revenues primarily from the sale of its citrus products and cattle ranching operations. The Company operates as three business segments, and substantially all of its operating revenues are generated in the United States. During the three and six months ended March 31, 2016, Alico generated operating revenues of approximately $71,889,000 and $92,493,000, respectively, income from operations of approximately $16,666,000 and $14,107,000, respectively, and net income attributable to common stockholders of approximately $8,734,000 and $5,722,000, respectively. Cash provided by operations was approximately $12,138,000 during the six months ended March 31, 2016.

Business Segments

Operating segments are defined in Financial Accounting Standards Board ("FASB") - Accounting Standards Codification ("ASC") ASC Topic 280, "Segment Reporting" 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. For the fiscal year ended September 30, 2015, the Company’s CODM assessed performance and allocated resources based on five operating segments: Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Other Operations.

Effective October 1, 2015, which is the first day of Alico's fiscal year 2016, the Company operates three business segments related to its various land holdings, as follows:

• Orange Co. 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, as well as, to value-added services, which include contracting for the harvesting, marketing and hauling of citrus.

20

• Conservation and Environmental Resources includes activities related to cattle grazing, sod, native plant and animal sales, leasing, management and/or conservation of unimproved native pasture land.

• Other Operations consists of activities related to rock mining royalties, oil exploration, and other insignificant lines of business, and also includes 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.

The former Citrus Groves and Agricultural Supply Chain Management segments have been combined in Orange Co. and, as a result of the disposition of its sugarcane land in fiscal year 2015, the Company is no longer involved in sugarcane, and the Improved Farmland segment is no longer material to its business and has been combined in Other Operations. 

Change in Fiscal Year of Subsidiary

As Alico, Inc. and Silver Nip Citrus were under common control at the time of the Merger, it is required under accounting principles generally accepted in the United States of America ("U.S. GAAP") to account for this common control acquisition in a manner similar to the pooling of interest method of accounting. Under this method of accounting, the Company's Condensed Combined Consolidated Balance Sheets as of March 31, 2016 and September 30, 2015 reflect Silver Nip Citrus’ historical carryover basis in the assets and liabilities, instead of reflecting the fair market value of the assets and liabilities. Alico has also retrospectively recast its financial statements to combine the operating results of the Company and Silver Nip Citrus from the date common control began, November 19, 2013.

Silver Nip Citrus’ fiscal year end was June 30, and their financial condition and results of operations as of and for the fiscal years ended June 30, 2015 and 2014 were included in the financial condition and results of operations of the Company as of and for the fiscal years ended September 30, 2015 and 2014, respectively. Effective October 1, 2015, the fiscal year end for Silver Nip Citrus was changed to September 30 to reflect that of the Company. Accordingly, the Company’s financial condition as of March 31, 2016 and September 30, 2015 now includes the financial condition of Silver Nip Citrus as of March 31, 2016 and September 30, 2015, and the Company’s results of operations for the three and six months ended March 31, 2016 and 2015 now includes the Silver Nip Citrus results of operations for the three and six months ended March 31, 2016 and 2015. The impact of this change was not material to the Condensed Combined Consolidated Financial Statements, with an approximate $493,000 decrease in total assets and an approximate net loss of $594,000 for the transition period related to this change included in Stockholders' Equity at September 30, 2015.

Critical Accounting Policies and Estimates

The discussion and analysis of Alico's financial condition and results of operations is based upon its unaudited condensed combined consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires it to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Alico bases these estimates on historical experience, available current market information, and on various other assumptions that management believes are reasonable under the circumstances. Additionally, the Company evaluates the results of these estimates on an on-going basis. Management’s estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

There have been no significant changes during this reporting period to the policies and disclosures set forth in Part II, Item 7 in Alico's Annual Report on Form 10-K for the fiscal year ended September 30, 2015.

See Note 1, "Basis of Presentation - Summary of Significant Accounting Policies," to the condensed combined consolidated financial statements in Item 1 of Part I of this 10-Q, for a detailed description of recent pronouncements.

Recent Developments

Water Storage Contract Approval

In December 2012, the South Florida Water Management District (“SFWMD” or "District") issued a solicitation request for projects to be considered for the Northern Everglades Payment for Environmental Services Program. The Company submitted its response proposing a dispersed water management project on a portion of its ranch land, and, on December 11, 2014, the SFWMD approved a contract with the Company.

21

The contract term is eleven years, and allows up to one year for implementation (design, permitting, construction and construction completion certification), and ten years of operation whereby the Company will provide water retention services. Payment for these services includes an amount not to exceed $4,000,000 of reimbursement for implementation. In addition, it provides for an annual fixed payment of $12,000,000 for operations and maintenance costs as long as the project is in compliance with the contract.

Payments under the contract are subject annually to the SFWMD receiving funds for the project from the Florida Legislature and SFWMD Governing Board budget appropriation. Funding for the first year of the dispersed water management project was included in the budget approved in the 2016 legislative session.

Project permitting is in process, and the Company intends to commence construction upon receipt of permits.

Prior year amounts have been reclassified in the accompanying Financial Statements for consistent presentation to the current period business segments. These reclassifications had no impact on working capital, net income, or equity of cash flows as previously reported.

Common Control Acquisition between the Company and 734 Citrus Holdings, LLC

Effective February 28, 2015, the Company completed the merger (the “Merger”) with 734 Citrus Holdings, LLC (“Silver Nip Citrus”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with 734 Sub, LLC, a wholly owned subsidiary of the Company (“Merger Sub”), Silver Nip Citrus and, solely with respect to certain sections thereof, the equity holders of Silver Nip Citrus. The ownership of Silver Nip Citrus was held by 734 Agriculture, 74.89%, Mr. Clay Wilson, Chief Executive Officer of the Company, 5% and an entity controlled by Mr. Clay Wilson owned, 20.11%.

On November 19, 2013, 734 Agriculture and its affiliates, including 734 Investors, acquired approximately 51% of the Company’s common stock. 734 Agriculture is the sole managing member of 734 Investors. By virtue of their ownership percentage, 734 Agriculture is able to elect all of the Directors and, consequently, control the Company. 

734 Agriculture has control over both Silver Nip Citrus and the Company, and therefore the Merger was treated as a common control acquisition.

At closing of the Merger, Merger Sub merged with and into Silver Nip Citrus, with Silver Nip Citrus and its affiliates surviving the Merger as wholly-owned subsidiaries of the Company. Pursuant to the Merger Agreement, at closing, the Company issued 923,257 shares of the Company’s common stock, par value $1.00 per share, to the holders of membership interests in Silver Nip Citrus. Silver Nip Citrus’ outstanding net indebtedness at the closing of the Merger was approximately $40,278,000 and other liabilities totaled $6,952,000. The Company acquired assets with a book value of approximately $65,739,000 and total net assets of $18,470,000. The common shares issued were recorded at the carrying amount of the net assets transferred.

Through March 31, 2016, the former holders of membership interests (the "Members") in Silver Nip Citrus earned and were issued an additional 148,705 shares of the Company’s common stock pursuant to the Merger Agreement. The additional purchase consideration was based on the value of the proceeds received to date by the Company from the sale of citrus fruit harvested on Silver Nip Citrus’s citrus groves for the 2014-2015 citrus harvest season. The Members are not expected to receive any additional company common shares related to the 2014-2015 harvest season.

22

Condensed Combined Consolidated Results of Operations

The following discussion provides an analysis of Alico's results of operations and should be read in conjunction with the accompanying Condensed Combined Consolidated Statements of Operations for the three and six months ended March 31, 2016 and 2015:

(in thousands)	Three Months Ended											Six Months Ended
	March 31,						Change					March 31,						Change
	2016			2015			$			%		2016			2015			$			%
Operating revenues:
Orange Co.	$	70,982		$	58,557		$	12,425		21.2	%	$	90,277		$	75,550		$	14,727		19.5	%
Conservation and Environmental Resources	644			309			335			108.4	%	1,651			1,145			506			44.2	%
Other Operations	263			1,146			(883		)	(77.1	)%	565			2,387			(1,822		)	(76.3	)%
Total operating revenues	71,889			60,012			11,877			19.8	%	92,493			79,082			13,411			17.0	%
Gross profit:
Orange Co.	19,266			12,174			7,092			58.3	%	20,953			14,953			6,000			40.1	%
Conservation and Environmental Resources	63			(314		)	377			(120.1	)%	(490		)	(223		)	(267		)	(119.7	)%
Other Operations	186			(184		)	370			(201.1	)%	418			218			200			91.7	%
Total gross profit	19,515			11,676			7,839			67.1	%	20,881			14,948			5,933			39.7	%
General and administrative expenses	2,849			3,499			(650		)	(18.6	)%	6,774			8,982			(2,208		)	(24.6	)%
Income from operations	16,666			8,177			8,489			103.8	%	14,107			5,966			8,141			136.5	%
Total other (expense) income, net	(1,840		)	(2,824		)	984			(34.8	)%	(4,376		)	8,357			(12,733		)	(152.4	)%
Income before income taxes	14,826			5,353			9,473			177.0	%	9,731			14,323			(4,592		)	(32.1	)%
Provision for income taxes	6,102			1,127			4,975			NM		4,027			4,890			(863		)	(17.6	)%
Net income	8,724			4,226			4,498			106.6	%	5,704			9,433			(3,729		)	(39.5	)%
Net loss attributable to noncontrolling interests	10			—			10			—	%	18			—			18			—	%
Net income attributable to Alico, Inc. common stockholders	$	8,734		$	4,226		$	4,508		106.7	%	$	5,722		$	9,433		$	(3,711	)	(39.3	)%

NM = Not meaningful

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The following discussion provides an analysis of the Company's business segments:

Orange Co.

The table below presents key operating measures for the three and six months ended March 31, 2016 and 2015:

(in thousands, except per box and per pound solids data)
	Three Months Ended March 31,									Six Months Ended March 31,
					Change									Change
	2016		2015		$			%		2016		2015		$			%
Operating Revenues:
Early and Mid-Season	$	29,680	$	37,311	$	(7,631	)	(20.5	)%	$	43,610	$	51,688	$	(8,078	)	(15.6	)%
Valencias	33,607		14,537		19,070			131.2	%	33,607		14,537		19,070			131.2	%
Fresh Fruit	1,942		1,822		120			6.6	%	4,402		3,105		1,297			41.8	%
Purchase and Resale of Fruit	4,591		3,615		976			27.0	%	5,918		4,535		1,383			30.5	%
Other	1,162		1,272		(110		)	(8.6	)%	2,740		1,685		1,055			62.6	%
Total	$	70,982	$	58,557	$	12,425		21.2	%	$	90,277	$	75,550	$	14,727		19.5	%
Boxes Harvested:
Early and Mid-Season	2,293		3,162		(869		)	(27.5	)%	3,604		4,524		(920		)	(20.3	)%
Valencias	2,341		1,081		1,260			116.6	%	2,341		1,081		1,260			116.6	%
Total Processed	4,634		4,243		391			9.2	%	5,945		5,605		340			6.1	%
Fresh Fruit	153		160		(7		)	(4.4	)%	349		246		103			41.9	%
Total	4,787		4,403		384			8.7	%	6,294		5,851		443			7.6	%
Pound Solids Produced:
Early and Mid-Season	13,075		19,013		(5,938		)	(31.2	)%	20,006		26,513		(6,507		)	(24.5	)%
Valencias	13,899		6,775		7,124			105.2	%	13,899		6,775		7,124			105.2	%
Fresh Fruit	142		84		58			69.0	%	142		84		58			69.0	%
Total	27,116		25,872		1,244			4.8	%	34,047		33,372		675			2.0	%
Pound Solids per Box:
Early and Mid-Season	5.70		6.01		(0.31		)	(5.2	)%	5.55		5.86		(0.31		)	(5.3	)%
Valencias	5.94		6.27		(0.33		)	(5.3	)%	5.94		6.27		(0.33		)	(5.3	)%
Price per Pound Solids:
Early and Mid-Season	$	2.27	$	1.96	$	0.31		15.8	%	$	2.18	$	1.95	$	0.23		11.8	%
Valencias	$	2.42	$	2.15	$	0.27		12.6	%	$	2.42	$	2.15	$	0.27		12.6	%
Price per Box:
Fresh Fruit	$	12.69	$	11.39	$	1.30		11.4	%	$	12.61	$	12.62	$	(0.01	)	(0.1	)%
Operating Expenses:
Cost of Sales	$	33,885	$	31,977	$	1,908		6.0	%	$	44,792	$	40,985	$	3,807		9.3	%
Harvesting and Hauling	12,803		10,569		2,234			21.1	%	16,558		14,311		2,247			15.6	%
Purchase and Resale of Fruit	4,401		3,498		903			25.8	%	5,658		4,406		1,252			28.4	%
Other	627		339		288			85.0	%	2,316		895		1,421			158.8	%
Total	$	51,716	$	46,383	$	5,333		11.5	%	$	69,324	$	60,597	$	8,727		14.4	%

Alico sells its Early and Mid-Season and Valencia oranges to processors that convert the majority of the citrus crop into orange juice. The processors generally buy citrus on a pound solids basis, which is the measure of the soluble solids (sugars and acids) contained in one box of fruit. Fresh Fruit is generally sold to packing houses that purchase citrus on a per box basis. Purchase and resale of fruit relates to the buying of fruit from third parties, and generally reselling this fruit to processors. These revenues and costs vary based on the number of boxes bought and sold. Other revenues consist of third-party grove caretaking and the contracting for harvesting and hauling of citrus.

The Company's operating expenses consist primarily of cost of sales and harvesting and hauling costs. Cost of sales represents the cost of maintaining Alico's citrus groves for the preceding calendar year and does not vary in relation to production. Harvesting

24

and hauling costs represent the costs of bringing citrus product to processors, and varies based upon the number of boxes produced. Other expenses include the period costs of third-party grove caretaking, and the contracting for harvesting and hauling activities.

The increase in citrus grove revenues for the three and six months ended March 31, 2016, as compared to the three and six months ended March 31, 2015, was primarily due to the harvesting of an additional 384,000 boxes and 443,000 boxes of fruit on higher price per pound solids, as compared to the three and six months ended March 31, 2015, respectively. The resale of third party fruit increased 56,317 boxes and 105,014 boxes for the three and six months ended March 31, 2016, respectively, driving the revenue increases. The increase in other revenues relates to an additional 365,436 boxes contracted for harvest and haul for a third party, as compared to thesix months ended March 31, 2015.

The USDA, in its April 12, 2016 Citrus Crop Forecast for the 2015/2016 harvest season, indicated that the Florida orange crop will decrease from 96,800,000 boxes for the 2014/2015 crop year to 76,000,000 boxes for the 2015/2016 crop year, a decrease of 21.5%. Alico has revised its 2016 box production estimate and now expects its 2016 crop to be approximately 87% - 89% of its 2015 production. These declines are believed to be mainly driven by growing season fluctuations in production, which may have been attributable to various factors, including extreme weather patterns, such as El Nino, changes in weather impacting bloom, horticultural practices, and the effects of diseases and pests, including Citrus Greening. The industry and the Company both continue to experience premature fruit drop, as well as smaller-sized fruit. Alico continues to expect, and has seen in its three and six months ended March 31, 2016 results, that the forecasted 21.5% decrease in the statewide crop will cause the price per pound solids for fiscal year 2016 to be above the price for fiscal year 2015. On March 4, 2016, the Florida Commissioner of Agriculture exercised his authority under the Emergency Exemptions provisions of the Federal Insecticide, Fungicide and Rodenticide Act to allow use of certain foliar bactericide applications. Florida growers can use these products until the Environmental Protection Agency completes its review of a specific exemption petition submitted by the Florida Department of Agriculture and Consumer Services. These bactericides are approved and successfully applied on other permanent crops throughout the United States. Orange Co. began application of these bactericides to all of its groves in April 2016. The Company is encouraged by the potential of foliar bactericide treatments to enhance the overall health of citrus trees and thereby mitigate the impact of citrus greening.

The increase in cost of sales for the six months ended March 31, 2016 compared to six months ended March 31, 2015 relates to an increased cost per box sold of approximately 2%, to $7.12 per box, and selling 443,000 additional boxes in the six months ended March 31, 2016. While the Company expects growing costs for fiscal year 2016 to remain in-line with fiscal year 2015, it anticipates harvesting fewer boxes, as discussed above, and therefore the cost per box increases. Per box harvest and hauling costs for the three and six months ended March 31, 2016 are approximately $0.27 and $0.24 greater than the three and six months ended March 31, 2015, respectively, due primarily to increased harvest labor costs. The increase in other expenses relates to increased contract harvest and haul for a third party.

25

Conservation and Environmental Resources

The table below presents key operating measures for the three and six months ended March 31, 2016 and 2015:

(in thousands, except per pound data)
	Three Months Ended March 31,				Change					Six Months Ended March 31,				Change
	2016		2015		$			%		2016		2015		$			%
Revenue From:
Sale of Calves	$	422	$	25	$	397		NM		$	1,204	$	109	$	1,095		NM
Sale of Culls	—		21		(21		)	(100.0	)%	—		511		(511		)	(100.0	)%
Land Leasing	221		223		(2		)	(0.9	)%	442		447		(5		)	(1.1	)%
Other	1		40		(39		)	(97.5	)%	5		78		(73		)	(93.6	)%
Total	$	644	$	309	$	335		108.4	%	$	1,651	$	1,145	$	506		44.2	%
Pounds Sold:
Calves	234		12		222			NM		717		50		667			NM
Culls	—		76		(76		)	(100.0	)%	—		446		(446		)	(100.0	)%
Price Per Pound:
Calves	$	1.80	$	2.08	$	(0.28	)	(13.5	)%	$	1.68	$	2.18	$	(0.50	)	(22.9	)%
Culls	$	—	$	0.28	$	(0.28	)	—	%	$	—	$	1.15	$	(1.15	)	—	%
Operating Expenses:
Cost of Calves Sold	$	270	$	1	$	269		NM		$	872	$	3	$	869		NM
Cost of Culls Sold	—		21		(21		)	(100.0	)%	—		220		(220		)	(100.0	)%
Land Leasing Expenses	56		58		(2		)	(3.4	)%	100		113		(13		)	(11.5	)%
Water Conservation	255		543		(288		)	(53.0	)%	1,169		1,032		137			13.3	%
Total	$	581	$	623	$	(42	)	(6.7	)%	$	2,141	$	1,368	$	773		56.5	%

NM - Not Meaningful

Ranch

The increase in revenues from the sale of calves for the three and six months ended March 31, 2016, as compared to the three and six months ended March 31, 2015, is due to the increase in pounds sold, partially offset by a decrease in price per pound. The increase in pounds sold in the three and six months ended March 31, 2016 was due to timing of calf sales, as the Company held an additional 1,000 calves in inventory at September 30, 2015, which have historically been sold to market in the fourth quarter of the fiscal year. Alico sold 556 calves and 1,342 calves in the three and six months ended March 31, 2016, respectively. No culls were sold in the three and six months ended March 31, 2016. The increase in gross profit for the three and six months ended March 31, 2016, as compared to the three and six months ended March 31, 2015, relates primarily to the increase in pounds sold, offset by no cull pounds sold in the three and six months ended March 31, 2016.

Conservation

In December 2012, the SFWMD issued a solicitation request for projects to be considered for the Northern Everglades Payment for Environmental Services Program. In March 2013, the Company submitted its response proposing a dispersed water management project on a portion of its ranch land.

On December 11, 2014, the SFWMD approved a contract with the Company. The contract term is eleven years and allows up to one year for implementation (design, permitting, construction and construction completion certification) and ten years of operation, whereby the Company will provide water retention services. Payment for these services includes an amount not to exceed $4,000,000 of reimbursement for implementation. In addition, it provides for an annual fixed payment of $12,000,000 for operations and maintenance costs, as long as the project is in compliance with the contract and subject to annual Board approval of funding. The contract specifies that the Board has to approve the payments annually, and there can be no assurance that it will approve the annual fixed payments. The Florida budget for the state’s 2016/2017 fiscal year was recently approved and included funding for the Program. Permitting is currently underway with construction to follow immediately upon receipt of permits. It is anticipated that payments under the contract should commence in fiscal year 2017. Operating expenses were approximately $255,000 and $543,000 for the three months ended March 31, 2016 and 2015, respectively, and $1,169,000 and $1,032,000 for the six months ended March 31, 2016 and 2015, respectively.

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Other Operations

Other Operations revenues decreased $883,000 and $1,822,000 for the three and six months ended March 31, 2016 as a result of the sale of Alico's sugarcane operations, and the corresponding reduction in land lease revenues from its former lease with United States Sugar Corporation. Operating expenses for Other Operations decreased by $1,253,000 and $2,022,000 three and six months ended March 31, 2016 as a result of the sale.

General and Administrative

Corporate general and administrative expenses for the three months ended March 31, 2016 totaled $2,849,000 compared to $3,499,000 for the three months ended March 31, 2015. The decrease relates primarily to $169,000 of non-recurring professional and legal fees incurred in the three months ended March 31, 2015 associated with the Orange-Co and Silver Nip acquisitions and a $358,000 decrease in separation and consulting agreement expenses. Corporate general and administrative expenses for the six months ended March 31, 2016 totaled $6,774,000 compared to $8,982,000 for the six months ended March 31, 2015. The decrease relates primarily to $3,351,000 in non-recurring professional and legal fees associated with the Orange-Co and Silver Nip acquisitions in fiscal year 2015 offset by certain fiscal year 2016 expenses including $403,000 in legal fees related to the shareholder litigation and approximately $350,000 in bonuses awarded to certain executives for fiscal 2015 performance that were approved and paid in the six months ended March 31, 2016.

Other (Expense) Income, net

Other (expense) income, net for the three months ended March 31, 2016 is approximately $984,000 greater than the same period of the prior year due to a gain of approximately $760,000 recognized on the sale of the sugarcane land recorded in the three months ended March 31, 2016.

Other (expense) income, net for the six months ended March 31, 2016 is approximately $12,733,000 less than the same period of the prior year due to a gain of approximately $13,613,000 on sale of the sugarcane land in the first quarter of fiscal 2015, offset by an increase of approximately $1,342,000 in interest expense, due primarily to the term loan debt from the Orange-Co acquisition.

Provision for Income Taxes

The provision for income tax was approximately $6,102,000 and $1,127,000 for the three months ended March 31, 2016 and 2015, respectively, and income tax expense was approximately $4,027,000 and $4,890,000 for the six months ended March 31, 2016 and 2015, respectively. The Company’s effective income tax rates were 41.1% and 21.1% for the three and six months ended March 31, 2016, respectively, and 41.4% and 34.1% for the three and six months ended March 31, 2015, respectively.

Seasonality

Historically, the second and third quarters of Alico's fiscal year produce the majority of the Company's annual revenue, and working capital requirements are typically greater in the first and fourth quarters of the fiscal year, coinciding with harvesting cycles. 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.

Non-GAAP Financial Measures

The Company utilizes Adjusted Earnings before interest, tax, depreciation and amortization ("EBITDA") among other measures, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of Alico's operations and, to a lesser extent, interest costs associated with the Company's capital structure, management believes that Adjusted EBITDA, Adjusted Earnings per Diluted Common Share, Adjusted Free Cash Flow and Adjusted Free Cash Flow per Diluted Common Share are important measures to evaluate the results of operations between periods on a more comparable basis, and to help investors analyze underlying trends in the industry, evaluate the performance of Alico's business both on an absolute basis and relative to its peers and the broader market, and provide useful information to both management and investors by excluding certain items that may not be indicative of the Company's core operating results and operational strength of Alico's business, and helps investors evaluate the Company's ability to service its debt. Tax impacts are computed based on the effective rate for the six months ended March 31, 2016. Such measurements are not prepared in accordance with U.S. GAAP and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-U.S. GAAP information provided is unique to the Company and may not be consistent with methodologies used by other companies. Adjusted Free Cash Flow is defined as cash provided by (used in) operations less capital expenditures adjusted for non-recurring transactions. The Company uses Adjusted Free Cash Flow

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and Adjusted Free Cash Flow per Diluted Common Share to evaluate its business and this measure is considered an important indicator of the Company's liquidity, including its ability to reduce net debt, make strategic investments and pay dividends to common stockholders. An analysis of Adjusted Free Cash Flow and Adjusted Free Cash Flow per Common Share is provided below. Net income attributable to common stockholders is reconciled to Adjusted EBITDA and Adjusted Earnings per Diluted Common Share, as follows:

Adjusted EBITDA

(in thousands)
	Three Months Ended March 31,					Six Months Ended March 31,
	2016			2015		2016			2015
Net income attributable to common stockholders	$	8,734		$	4,226	$	5,722		$	9,433
Interest expense	2,475			2,257		4,978			3,636
Provision for income taxes	6,102			1,127		4,027			4,890
Depreciation and amortization	4,036			3,505		8,044			6,489
EBITDA	21,347			11,115		22,771			24,448
Asset impairment	—			541		—			541
Transaction costs	105			274		502			3,853
Acquired citrus inventory fair value adjustments	—			4,202		—			4,202
Loss on extinguishment of debt	—			17		—			964
Payments on consulting agreements	142			500		446			500
Litigation expenses related to shareholder lawsuit	3			—		403			—
(Gains) losses on sale of real estate	(760		)	27		(902		)	(13,471		)
Adjusted EBITDA	$	20,837		$	16,676	$	23,220		$	21,037

Adjusted Earnings per Common Share

(in thousands)
	Three Months Ended March 31,						Six Months Ended March 31,
	2016			2015			2016			2015
Net income attributable to common stockholders	$	8,734		$	4,226		$	5,722		$	9,433
Loss on extinguishment of debt	—			17			—			964
Asset impairment	—			541			—			541
Transaction costs	105			274			502			3,853
Litigation expenses related to shareholder lawsuit	3			—			403			—
Acquired citrus inventory fair value adjustments	—			4,202			—			4,202
Payments on consulting agreements	142			500			446			500
Gains on sale of real estate	(760		)	27			(902		)	(13,471		)
Tax impact	209			(1,171		)	(186		)	1,164
Adjusted net income	$	8,433		$	8,616		$	5,985		$	7,186
Diluted common shares	8,303			8,272			8,309			7,815
Adjusted Earnings per Diluted Common Share	$	1.02		$	1.04		$	0.72		$	0.92

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Adjusted Free Cash Flow

(in thousands)
	Three Months Ended March 31,						Six Months Ended March 31,
	2016			2015			2016			2015
Net cash provided by (used in) operating activities	$	26,919		$	12,499		$	12,138		$	(3,947	)
Adjustments for non-recurring items:
Transaction costs	105			274			502			3,853
Payments on consulting agreements	142			500			446			500
Litigation expenses related to shareholder lawsuit	3			—			403			—
Capital expenditures	(2,943		)	(3,427		)	(5,931		)	(5,235		)
Adjusted Free Cash Flow	$	24,226		$	9,846		$	7,558		$	(4,829	)
Diluted common shares	8,303			8,272			8,309			7,815
Adjusted Free Cash Flow per Diluted Common Share	$	2.92		$	1.19		$	0.91		$	(0.62	)

Liquidity and Capital Resources

A comparative balance sheet summary is presented in the following table:

(in thousands)	March 31,		September 30,
	2016		2015		Change
Cash and cash equivalents	$	3,552	$	5,474	$	(1,922	)
Total current assets	$	78,139	$	70,763	$	7,376
Total current liabilities	$	26,952	$	24,135	$	2,817
Working capital	$	51,187	$	46,628	$	4,559
Total assets	$	463,852	$	460,088	$	3,764
Term loans and line of credit	$	205,100	$	205,481	$	(381	)
Current ratio	2.90 to 1		2.93 to 1

Management believes that a combination of cash-on-hand, cash generated from operations and availability under the Company's lines of credit will provide sufficient liquidity to service the principal and interest payments on its indebtedness and will satisfy working capital requirements and capital expenditures for at least the next twelve months and over the long term. Alico has a $70,000,000 working capital line of credit, of which approximately $56,000,000 is available for general use as of March 31, 2016, and a $25,000,000 revolving line of credit, of which $20,000,000 is available for general use as of March 31, 2016 (see Note 6 “Long-Term Debt and Lines of Credit" to the accompanying Condensed Combined Consolidated Financial Statements). If the Company pursues significant growth opportunities in the future, it could have a material adverse impact on its cash balances and may need to finance such activities by drawing down monies under its lines of credit or by obtaining additional debt or equity financing. There can be no assurance that additional financing will be available to the Company when needed or, if available, that it can be obtained on commercially reasonable terms. Any inability to obtain additional financing could impact Alico's ability to pursue different growth opportunities.

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Net Cash Provided By (Used In) Operating Activities

The following table details the items contributing to Net Cash Used in Operating Activities for the six months ended March 31, 2016 and 2015:

(in thousands)	Six Months Ended March 31,
	2016			2015			Change
Net income	$	5,722		$	9,433		$	(3,711	)
Gain on sale of sugarcane land	(902		)	(13,613		)	12,711
Depreciation and amortization	8,044			6,489			1,555
Loss (gain) on sale of property and equipment	211			(570		)	781
Non-cash interest on deferred sugarcane gain	696			—			696
Deferred income taxes	—			215			(215		)
Stock-based compensation	430			583			(153		)
Other non-cash gains and losses	449			939			(490		)
Change in working capital	(2,512		)	(7,423		)	4,911
Net cash provided by (used in) operating activities	$	12,138		$	(3,947	)	$	16,085

The factors contributing to the decrease in net income for the six months ended March 31, 2016, versus the same period of the prior year, are discussed in “Condensed Combined Consolidated Statements of Comprehensive Income.” The gain on sale of property and equipment in the six months ended March 31, 2015 is due to the recognition of approximately $13,613,000 associated with the sugarcane land sale as discussed in Note 4. "Acquisitions and Dispositions" to the Condensed Combined Consolidated Financial Statements.

Due to the seasonal nature of Alico's business, working capital requirements are typically greater in the first and fourth quarters of its fiscal year. Cash flows from operating activities typically improve in the second and third fiscal quarters as its citrus crops are harvested.

Net Cash Used In Investing Activities

The following table details the items contributing to Net Cash Used in Investing Activities for the six months ended March 31, 2016 and 2015:

(in thousands)	Six Months Ended March 31,
	2016			2015			Change
Capital expenditures:
Citrus nursery	$	(94	)	$	(2,406	)	$	2,312
Citrus tree development	(2,365		)	(300		)	(2,065		)
Breeding herd purchases	(789		)	(164		)	(625		)
Rolling stock, equipment and other	(2,543		)	(1,390		)	(1,153		)
Other	(140		)	(975		)	835
Total	(5,931		)	(5,235		)	(696		)
Acquisition of Citrus business	—			(264,586		)	264,586
Proceeds from sale of assets	—			97,151			(97,151		)
Other	141			1,093			(952		)
Net cash used in investing activities	$	(5,790	)	$	(171,577	)	$	165,787

The decrease in net cash used in investing activities for the six months ended March 31, 2016, as compared to the six months ended March 31, 2015, was primarily due to (i) the acquisition of Orange-Co for approximately $264,586,000 in December 2014, and (ii) the utilization of proceeds from the disposition of Alico's sugarcane land of approximately $97,126,000 via a tax-deferred

30

like-kind exchange pursuant to Internal Revenue Code Section 1031 (see Note 4. “Acquisitions and Dispositions" to the accompanying Condensed Combined Consolidated Financial Statements).

Net Cash (Used In) Provided By Financing Activities

The following table details the items contributing to Net Cash Used in Financing Activities for the six months ended March 31, 2016 and 2015:

(in thousands)	Six Months Ended March 31,
	2016			2015			Change
Proceeds from term loans	$	—		$	182,500		$	(182,500	)
Repayments on revolving line of credit	(45,132		)	(49,942		)	4,810
Borrowings on revolving line of credit	50,132			63,528			(13,396		)
Repayment of term loan	—			(34,000		)	34,000
Principal payments on term loans	(5,381		)	(12,489		)	7,108
Contingent consideration paid	(3,750		)	—			(3,750		)
Treasury stock purchases	(3,141		)	(512		)	(2,629		)
Financing costs	—			(2,895		)	2,895
Dividends paid	(998		)	(885		)	(113		)
Net cash (used in) provided by financing activities	$	(8,270	)	$	145,305		$	(153,575	)

The decrease in net cash provided by financing activities for the six months ended March 31, 2016, as compared to the six months ended March 31, 2015, was primarily due to net proceeds from the Company’s restructured long-term debt on December 3, 2014, in connection with the Orange-Co acquisition (see Note 6. “Long-term Debt and Lines of Credit” to the accompanying Condensed Combined Consolidated Financial Statements). The restructured credit facilities included $125,000,000 in fixed interest rate term loans and $57,500,000 in variable interest rate term loans. The proceeds of the new credit facilities were partially offset by the repayment of an existing $33,500,000 variable interest rate term loan.

Alico drew on a net basis approximately $5,000,000 and $13,586,000 on its lines of credit, primarily to fund working capital requirements and investing activities for the six months ended March 31, 2016 and 2015, respectively. The decrease in term loan repayments for the six months ended March 31, 2016, compared to March 31, 2015, relates to an $8,750,000 optional principal prepayment on the fixed term loan made in fiscal 2015. There have been no prepayments for the six months ended March 31, 2016.

The WCLC agreement provides for Rabo to issue up to $20,000,000 in letters of credit on the Company’s behalf. As of March 31, 2016, there was approximately $13,984,000 in outstanding letters of credit which correspondingly reduced Alico's availability under the line of credit. The outstanding balance on the WCLC was $0 as of March 31, 2016.

On December 1, 2015, the Company paid $3,750,000 of additional consideration on the Orange-Co acquisition, as contemplated by the Orange-Co Purchase Agreement. Alico's $7,500,000 irrevocable letter of credit, securing the payment of the additional consideration, was extended and modified to reflect an amount of $3,750,000, securing the final payment due on June 1, 2016, subject to certain limitations.

Purchase Commitments

The Company, through its wholly owned subsidiary Alico Fruit Company, enters into contracts for the purchase of citrus fruit during the normal course of its business. The remaining obligations under these purchase agreements were approximately $917,834 as of March 31, 2016, for delivery in fiscal year 2016. All of these obligations are covered by sales agreements. The Company’s management currently believes that all committed purchase volume will be sold at cost, or higher.

Contractual Obligations and Off Balance Sheet Arrangements

There have been no material changes during this reporting period to the disclosures set forth in Part II, Item 7 in Alico's Annual Report on Form 10-K for the fiscal year ended September 30, 2015.

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Item 3.Quantitative and Qualitative Disclosures about Market Risk.

There have been no material changes during this reporting period in the disclosures set forth in Part II, Item 7A in our Annual Report on Form 10-K for the fiscal year ended September 30, 2015, filed with the SEC on December 10, 2015.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

Alico's Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the disclosure controls and procedures as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) as of the end of the period covered by this report. Based on this evaluation, Alico's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were effective.

(b) Changes in Internal Control over Financial Reporting.

During the second fiscal quarter ended March 31, 2016 there were no changes in Alico's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings.

On March 11, 2015, a putative stockholder class action lawsuit captioned Shiva Y. Stein v. Alico, Inc., et al., No. 15-CA-000645 (the “Stein lawsuit”), was filed in the Circuit Court of the Twentieth Judicial District in and for Lee County, Florida, against Alico, Inc. (“Alico”), its current and certain former directors, 734 Citrus Holdings, LLC d/b/a Silver Nip Citrus, 734 Investors, LLC (“734 Investors”), 734 Agriculture, LLC (“734 Agriculture”) and 734 Sub, LLC (“734 Sub”) in connection with the acquisition of Silver Nip by Alico (the “Acquisition”). The complaint alleges that Alico’s directors at the time of the Acquisition, 734 Investors and 734 Agriculture breached fiduciary duties to Alico stockholders in connection with the Acquisition and that Silver Nip and 734 Sub aided and abetted such breaches. The lawsuit seeks, among other things, monetary and equitable relief, costs, fees (including attorneys’ fees) and expenses.

On May 6, 2015, a putative stockholder class action and derivative lawsuit captioned Ruth S. Dimon Trust v. George R. Brokaw, et al., No. 15-CA-001162 (the “Dimon lawsuit”), was filed in the Circuit Court of the Twentieth Judicial District in and for Lee County, Florida, against Alico, its current directors, Silver Nip Citrus, 734 Investors and 734 Agriculture in connection with the Acquisition of Silver Nip Citrus by Alico. The complaint alleges claims for breach of fiduciary duty, gross mismanagement, waste of corporate assets and tortious interference with contract against Alico’s directors, unjust enrichment against three of the directors and aiding and abetting breach of fiduciary duty against Silver Nip Citrus, 734 investors and 734 Agriculture. The lawsuit seeks, among other things, rescission of the Acquisition, an injunction prohibiting certain payments to Silver Nip Citrus members, unspecified damages, disgorgement of profits, costs, fees (including attorneys’ fees) and expenses.

On July 17, 2015, the plaintiffs in the Stein and Dimon lawsuits filed a stipulation and proposed order consolidating their cases for all purposes under the caption, In re Alico, Inc. Shareholder Litigation, Master File No. 15-CA-000645 (the “Consolidated Action”) and seeking the appointment of a lead plaintiff and lead and liaison counsel. The court entered that proposed order on July 21, 2015.

On October 16, 2015, the lead plaintiff in the Consolidated Action reported to the Court that the parties reached an agreement in principle to settle the Consolidated Action and other claims related to the Acquisition and that they were in the process of formally documenting their agreements. The proposed settlement contemplates that Alico will adopt certain changes to its corporate governance practices, policies and procedures concerning related party transactions, that the Consolidated Action will be dismissed and that all claims that were or could have been asserted challenging any aspect of the Acquisition will be released. On March 31, 2016, the parties entered into a Stipulation of Settlement.  The parties filed an Amended Stipulation of settlement with the Court on April 22, 2016.

On April 28, 2016, the Court entered an order preliminarily approving the settlement and providing for notice to relevant Alico shareholders.  The settlement remains subject to final judicial approval following notice to the relevant Alico shareholders and a settlement hearing at which the Court will consider the fairness, reasonableness and adequacy of the settlement. In connection with the proposed settlement, the parties contemplate that plaintiffs' counsel will seek an award of attorneys' fees and expenses. There can be no assurance that the Court will approve the settlement.

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 current legal proceedings to which the Company is a party to or of which any of its property is subject to that it believes will have a material adverse effect on its business financial position or results of operations.

Item 1A.Risk Factors.

There have been no material changes in the risk factors set forth in Part 1, Item 1A, “Risk Factors” in Alico's Annual Report on Form 10-K for the fiscal year ended September 30, 2015, as filed with the SEC on December 10, 2015.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

In fiscal year 2016, the Board of Directors authorized the repurchase of up to 50,000 shares of the Company’s common stock beginning February 18, 2016 and continuing through February 17, 2017 (the "2016 Authorization"). The stock repurchases will be made through open market transactions at times and in such amounts as the Company’s broker determine subject to the provisions of SEC Rule 10b-18. The Company also adopted a Rule 10b5-1 share repurchase plan under the Securities Exchange Act of 1934

33

(the “Plan”) in connection with its share repurchase authorization. The Plan allows the Company to repurchase its shares at times when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods.

For the three months ended March 31, 2016, the Company did not purchase any shares in accordance with the 2016 Authorization and has available to purchase 50,000 shares in accordance with the 2016 Authorization.

In fiscal year 2015, the Board of Directors authorized the repurchase of up to 170,000 shares of the Company’s common stock beginning March 25, 2015, and continuing through December 31, 2016, (the "2015 Authorization"). The stock repurchases 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 months ended March 31, 2016, the Company had purchased the 14,310 shares it had remaining under the 2015 Authorization.

The following table describes Alico's purchases of its common stock during the three months ended March 31, 2016.

	Total			Total Number of Shares	Maximum Number of
	Number of	Average		Purchased As Part of	Shares that May Yet Be
	Shares	Price Paid		Publicly Announced	Purchased Under the
	Purchased	Per Share		Plans Or Programs	Plans or Programs
Month of January 2016	14,310	$	37.62	14,310	50,000
Month of February 2016	—	$	—	—	50,000
Month of March 2016	—	$	—	—	50,000

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosure.

Not Applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits.            

Exhibit Number		Exhibit Index
2.1	***	Asset Purchase Agreement, dated as of December 1, 2014, by and among Alico, Inc., Orange-Co, LP, and, solely with respect to certain sections thereof, Orange-Co, LLC and Tamiami Citrus, LLC. (Incorporated by reference to Exhibit 2.1 of Alico’s filing on Form 8-K dated December 5, 2014)
2.2	***	Agreement and Plan of Merger, dated as of December 2, 2014, by and among Alico, Inc., 734 Sub, LLC, 734 Citrus Holdings, LLC, and, solely with respect to certain sections thereof, 734 Agriculture, LLC, Rio Verde Ventures, LLC and Clayton G. Wilson. (Incorporated by reference to Exhibit 2.2 of Alico’s filing on Form 8-K dated December 5, 2014)
3.1		Restated Certificate of Incorporation, Dated February 17, 1972 (incorporated by reference to Alico’s Registration Statement on Form S-1 dated February 24, 1972, Registration No. 2-43156)
3.2		Certificate of Amendment to Certificate of Incorporation, Dated January 14, 1974 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)
3.3		Amendment to Articles of Incorporation, Dated January 14, 1987 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)
3.4		Amendment to Articles of Incorporation, Dated December 27, 1988 (incorporated by reference to Alico’s Registration Statement on Form S-8, dated December 21, 2005, Registration No. 333-130575)
3.5		By-Laws of Alico, Inc., amended and restated (Incorporated by reference to Exhibit 3.1 of the Company’s current report on Form 8-K, filed with the Commission on January 25, 2013)
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Rule 13a-14(a) certification
32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350
32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350
101.0
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.
***	Certain schedules and exhibits have been omitted from this filing pursuant to Item 601(b) (2) of Regulation S-K.  The Company will furnish supplemental copies of any such schedules or exhibits to the SEC upon request.

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Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ALICO, INC. (Registrant)
May 5, 2016	By:	/s/ Clayton G. Wilson
		Clayton G. Wilson
		President and Chief Executive Officer
May 5, 2016	By:	/s/ John E. Kiernan
		John E. Kiernan
		Senior Vice President and Chief Financial Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Clayton G. Wilson certify that;

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 March 31, 2016, 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: May 5, 2016	By:	/s/ Clayton G. Wilson
		Clayton G. Wilson
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John E. Kiernan certify that;

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 March 31, 2016, 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: May 5, 2016	By:	/s/ John E. Kiernan
		John E. Kiernan
		Chief Financial Officer and Senior Vice President

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Alico, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on May 5, 2016, (the “Form 10-Q”), I, Clayton G. Wilson, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2016	By:	/s/ Clayton G. Wilson
		Clayton G. Wilson
		President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Alico, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on May 5, 2016, (the “Form 10-Q”), I, John E. Kiernan, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2016	By:	/s/ John E. Kiernan
		John E. Kiernan
		Chief Financial Officer and Senior Vice President

XML

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2016	Apr. 27, 2016
Document and Entity Information:
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
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		8,309,128

XML

CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Operating revenues:
Total operating revenues	$ 71,889	$ 60,012	$ 92,493	$ 79,082
Operating expenses:
Total operating expenses	52,374	48,336	71,612	64,134
Gross profit	19,515	11,676	20,881	14,948
General and administrative expenses	2,849	3,499	6,774	8,982
Income from operations	16,666	8,177	14,107	5,966
Other (expense) income:
Investment and interest income, net	0	0	0	2
Interest expense	(2,475)	(2,257)	(4,978)	(3,636)
Gain (loss) on sale of real estate	760	(27)	902	13,471
Loss on extinguishment of debt	0	(17)	0	(964)
Impairment of asset held for sale	0	(541)	0	(541)
Other (expense) income, net	(125)	18	(300)	25
Total other (expense) income, net	(1,840)	(2,824)	(4,376)	8,357
Income before income taxes	14,826	5,353	9,731	14,323
Provision for income taxes	6,102	1,127	4,027	4,890
Net income	8,724	4,226	5,704	9,433
Net loss attributable to noncontrolling interests	10	0	18	0
Net income attributable to Alico, Inc. common stockholders	8,734	4,226	5,722	9,433
Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to Alico, Inc. common stockholders	$ 8,734	$ 4,226	$ 5,722	$ 9,433
Earnings per common share:
Basic (in dollars per share)	$ 1.05	$ 0.51	$ 0.69	$ 1.21
Diluted (in dollars per share)	$ 1.05	$ 0.51	$ 0.69	$ 1.21
Weighted-average number of common shares outstanding:
Basic (in shares)	8,286	8,272	8,294	7,815
Diluted (in shares)	8,303	8,272	8,309	7,815
Cash dividends declared per common share (in dollars per share)	$ 0.06	$ 0.06	$ 0.12	$ 0.12
Operating Segments
Operating revenues:
Total operating revenues	$ 71,889	$ 60,012	$ 92,493	$ 79,082
Operating expenses:
Total operating expenses	52,374	48,336	71,612	64,134
Gross profit	19,515	11,676	20,881	14,948
Operating Segments | Orange Co.
Operating revenues:
Total operating revenues	70,982	58,557	90,277	75,550
Operating expenses:
Total operating expenses	51,716	46,383	69,324	60,597
Gross profit	19,266	12,174	20,953	14,953
Operating Segments | Conservation and Environmental Resources
Operating revenues:
Total operating revenues	644	309	1,651	1,145
Operating expenses:
Total operating expenses	581	623	2,141	1,368
Gross profit	63	(314)	(490)	(223)
Operating Segments | Other Operations
Operating revenues:
Total operating revenues	263	1,146	565	2,387
Operating expenses:
Total operating expenses	77	1,330	147	2,169
Gross profit	$ 186	$ (184)	$ 418	$ 218

XML

CONDENSED COMBINED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 3,552	$ 5,474
Accounts receivable, net	24,766	3,137
Inventories	46,421	58,273
Income tax receivable	2,088	2,088
Prepaid expenses and other current assets	1,312	1,791
Total current assets	78,139	70,763
Property and equipment, net	379,100	381,099
Goodwill	2,246	2,246
Deferred financing costs, net of accumulated amortization	2,598	2,978
Other non-current assets	1,769	3,002
Total assets	463,852	460,088
Current liabilities:
Accounts payable	6,810	4,407
Accrued liabilities	10,817	13,815
Long-term debt, current portion	4,511	4,511
Income taxes payable	4,027	0
Deferred tax liability, current portion	151	151
Obligations under capital leases, current portion	277	277
Other current liabilities	359	974
Total current liabilities	26,952	24,135
Long-term debt	195,589	200,970
Lines of credit	5,000	0
Deferred tax liability	25,581	25,628
Deferred gain on sale	28,432	29,122
Deferred retirement obligations	4,170	4,134
Obligations under capital leases	588	588
Total liabilities	$ 286,312	$ 284,577
Commitments and Contingencies (Note 10)
Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized; none issued	$ 0	$ 0
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 and 8,416,145 shares issued and 8,302,063 and 8,325,580 shares outstanding at March 31, 2016 and September 30, 2015, respectively	8,416	8,416
Additional paid in capital	18,257	19,795
Treasury stock, at cost, 114,082 and 90,565 shares held at March 31, 2016 and September 30, 2015, respectively	(5,151)	(3,962)
Retained earnings	151,229	146,455
Total Alico stockholders' equity	172,751	170,704
Noncontrolling interest	4,789	4,807
Total stockholders' equity	177,540	175,511
Total liabilities and stockholders' equity	$ 463,852	$ 460,088

XML

CONDENSED COMBINED CONSOLIDATED BALANCE SHEETS (UNAUDITED) PARENTHETICAL - $ / shares	Mar. 31, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share (in dollars per share)	$ 1	$ 1.00
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	8,416,145	8,416,145
Common stock, shares outstanding	8,302,063	8,325,580
Treasury stock at cost, shares	114,082	90,565

XML

CONDENSED COMBINED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Cash Flows [Abstract]
Net cash provided by (used in) operating activities:	$ 12,138	$ (3,947)
Cash flows from investing activities:
Acquisition of citrus businesses, net of cash acquired	0	(264,586)
Proceeds on sale of sugarcane land	0	97,151
Purchases of property and equipment	(5,931)	(5,235)
Proceeds from disposals of property and equipment	0	620
Other	141	473
Net cash used in investing activities	(5,790)	(171,577)
Cash flows from financing activities:
Proceeds from term loans	0	182,500
Repayments on revolving line of credit	(45,132)	(49,942)
Borrowings on revolving line of credit	50,132	63,528
Repayment of term loan	0	(34,000)
Principal payments on term loans	(5,381)	(12,489)
Contingent consideration paid	(3,750)	0
Treasury stock purchases	(3,141)	(512)
Financing costs	0	(2,895)
Dividends paid	(998)	(885)
Net cash (used in) provided by financing activities	(8,270)	145,305
Net decrease in cash and cash equivalents	(1,922)	(30,219)
Cash and cash equivalents at beginning of the period	5,474	31,130
Cash and cash equivalents at end of the period	3,552	911
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amount capitalized	4,455	2,421
Cash paid for income taxes	$ 47	$ 5,200

XML

Basis of Presentation

6 Months Ended

Mar. 31, 2016

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 121,000 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 - Orange Co. and Conservation and Environmental Resources. Financial results are presented based upon its three business segments (Orange Co., Conservation and Environmental Resources and Other Operations). 

Basis of Presentation

The Company has prepared the accompanying financial statements on a condensed combined consolidated basis. These accompanying unaudited condensed combined 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 and Combined Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015, and filed with the SEC on December 10, 2015.

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, 2016. All intercompany transactions and account balances between the consolidated and combined businesses have been eliminated.

Effective February 28, 2015, the Company completed the merger (“Merger”) with 734 Citrus Holdings, LLC (“Silver Nip Citrus”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with 734 Sub, LLC, a wholly owned subsidiary of the Company (“Merger Sub”), Silver Nip Citrus and, solely with respect to certain sections thereof, the equity holders of Silver Nip Citrus. The ownership of Silver Nip Citrus was held by 734 Agriculture, 74.89%, Mr. Clay Wilson, Chief Executive Officer of the Company, 5% and an entity controlled by Mr. Clay Wilson owned, 20.11%.

As the Company and Silver Nip Citrus were under common control at the time of the Merger, it is required under U.S. GAAP to account for this common control acquisition in a manner similar to the pooling of interest method of accounting. Under this method of accounting, Alico's Condensed Combined Consolidated Balance Sheets as of March 31, 2016 and September 30, 2015 reflect Silver Nip Citrus’ historical carryover basis in the assets and liabilities instead of reflecting the fair market value of the assets and liabilities. The Company has also retrospectively recast its financial statements to combine the operating results of the Company and Silver Nip Citrus from the date common control began, November 19, 2013.

Correction of an Immaterial Error in Prior Periods

During the six months ended March 31, 2016, the Company identified a $1,494,000 error related to an understatement of income tax expense for the fiscal year ended September 30, 2014. As previously noted, the Company and Silver Nip Citrus were under common control at the time of the Merger and accordingly we retrospectively recast our financial statements to combine the operating results of the Company and Silver Nip Citrus from the date common control began, November 19, 2013. Silver Nip Citrus had a September 30 year end for tax reporting purposes at the time of the Merger. The tax returns for the year ended September 30, 2014 and the short period ended February 28, 2015, date of the Merger, were prepared and filed in the second quarter of fiscal 2016. The Company reviewed the as filed tax returns in an effort to true-up the tax provision. During this review, the Company identified the error that impacts the Silver Nip Citrus financial condition and results of operations as of and for the period ended June 30, 2014.

In accordance with Financial Accounting Standards Board Accounting Standards Codification 250, Accounting Changes and Error Corrections, we evaluated the materiality of the error from quantitative and qualitative perspectives. We concluded that the error was immaterial to the Company's prior period interim and annual consolidated and combined financial statements, and, accordingly no amendments to previously filed interim or annual periodic reports are required. Consequently, the Company will adjust for this error by revising its fiscal 2014 financial statements, when presented in future filings, by increasing income tax expense and its long term deferred tax liability by $1,494,000. The Company recognized the cumulative effect of the error on periods prior to those presented herein by increasing long term deferred tax liability and reducing additional paid-in capital by $1,494,000 for the fiscal year ended September 30, 2015. The pre-merger net earnings of Silver Nip Citrus are classified as additional paid-in capital in the accompanying Condensed Combined Consolidated Balance Sheets as of March 31, 2016 and September 30, 2015.

Change in Fiscal Year of Subsidiary

Silver Nip Citrus’ fiscal year end was previously June 30, and their financial condition and results of operations as of and for the fiscal years ended June 30, 2015 and 2014 were included in the financial condition and results of operations of the Company as of and for the fiscal years ended September 30, 2015 and 2014, respectively. Effective October 1, 2015, the fiscal year end for Silver Nip Citrus was changed to September 30 to reflect that of the Company. Accordingly, the Company’s financial condition as of March 31, 2016 and September 30, 2015 now includes the financial condition of Silver Nip Citrus as of March 31, 2016 and September 30, 2015, respectively, and the Company’s results of operations for the three and six months ended March 31, 2016 and 2015 now includes the Silver Nip Citrus results of operations for the three and six months ended March 31, 2016 and 2015, respectively. The impact of this change was not material to the Condensed Combined Consolidated Financial Statements with an approximate $493,000 decrease in total assets and an approximate net loss of $594,000 for the transition period related to this change included in Stockholders' Equity at October 1, 2015.

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. For the fiscal year ended September 30, 2015, the Company’s CODM assessed performance and allocated resources based on five operating segments: Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Other Operations. The former Citrus Groves and Agricultural Supply Chain Management segments have been combined in Orange Co. and, as a result of the disposition of the Company's sugarcane land in fiscal year 2015, it is no longer involved in sugarcane, and the Improved Farmland segment is no longer material to its business and has been combined in Other Operations. Effective October 1, 2015, the Company’s CODM will assess performance and allocate resources based on three operating segments: Orange Co., Conservation and Environmental Resources and Other Operations. Disclosures related to the three and six months ended March 31, 2015 have been revised to be consistent with the current operating segment structure.

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. The Financial Statements represent the Condensed Combined Consolidated Balance Sheets, Statements of Operations and Comprehensive Income and Statements of Cash Flows of Alico, Inc. and its subsidiaries. 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 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.

Noncontrolling Interest in Consolidated Affiliate

The Financial Statements include all assets and liabilities of the less-than-100%-owned affiliate 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 $37,171 and $14,831 for the six months ended March 31, 2016 and 2015, of which 51% is attributable to the Company.

Business Combinations

The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in FASB ASC No. 805, “Business Combinations”, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed and any noncontrolling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and noncontrolling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with FASB ASC No. 805, the Company recognizes and measures goodwill, if any, as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired.

When Alico acquires a business from an entity under common control, whereby the companies are ultimately controlled by the same party, or parties, both before and after the transaction, it is treated similarly to the pooling of interest method of accounting. The assets and liabilities are recorded at the transferring entity’s historical cost instead of reflecting the fair market value of assets and liabilities.

Recent Accounting Pronouncements

In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present all deferred tax liabilities and assets as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted. The standard can be applied either prospectively to all deferred tax liabilities and assets, or retrospectively to all periods presented. As this standard impacts presentation only, the adoption of ASU 2015-17 is not expected to have an impact on the Company's financial condition, results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01 “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" (“ASU 2016-01”). This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments, whereby estimated fair value may be measured at cost, and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, and it will become effective for Alico at the beginning of its first quarter of fiscal 2019.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)." This guidance will require entities that enter into leases as a lessee to recognize right-of-use assets and lease liabilities for those leases classified as operating leases under previous GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, and it will become effective for Alico at the beginning of its first quarter of fiscal 2020.

In March 2016, the FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." The amendment clarifies the implementation guidance for principal versus agent considerations as contained in ASU No. 2014-09, Revenue from Contracts with Customers. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to a customer. ASU No. 2016-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption of ASU No. 2016-08 is permitted but not before December 15, 2016. The Company is currently evaluating the impact of ASU No. 2016-08 on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is  currently evaluating the new guidance to determine the impact it may have its consolidated financial statements.

Seasonality

The Company is primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of its fiscal year generally produce the majority of its annual revenue, and working capital requirements are typically greater in the first and fourth quarters of the fiscal year. The results of the reported periods herein are not necessarily indicative of the results for any other interim periods or the entire fiscal year.

XML

Inventories

6 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,		September 30,
	2016		2015
Unharvested fruit crop on the trees	$	38,431	$	52,497
Beef cattle	2,279		1,612
Citrus tree nursery	3,107		2,854
Other	2,604		1,310
Total inventories	$	46,421	$	58,273

The Company records its inventory at the lower of cost or net realizable value. For the three and six months ended March 31, 2016 and 2015 the Company did not record any adjustments to reduce inventory to net realizable value.

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Property and Equipment, Net

6 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, Net

Property and equipment, net consists of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,			September 30,
	2016			2015
Citrus trees	$	249,188		$	247,488
Equipment and other facilities	58,454			56,200
Buildings and improvements	21,391			21,259
Breeding herd	12,546			11,924
Total depreciable properties	341,579			336,871
Less accumulated depreciation and depletion	(77,672		)	(70,200		)
Net depreciable properties	263,907			266,671
Land and land improvements	115,193			114,428
Net property and equipment	$	379,100		$	381,099

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Acquisition and Dispositions

6 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

Acquisition of Orange-Co

On December 2, 2014, the Company completed the acquisition of certain citrus and related assets of Orange-Co, LP (“Orange-Co”), including 51% of the ownership interests of Citree, pursuant to an Asset Purchase Agreement, which is referred to as the Orange-Co Purchase Agreement, dated as of December 1, 2014. The assets the Company purchased include approximately 20,263 acres of citrus groves in DeSoto and Charlotte Counties, Florida, which comprise one of the largest contiguous citrus grove properties in the state of Florida. Total assets acquired were approximately $277,792,000, net of $2,060,000 in cash acquired and approximately $4,838,000 in fair value attributable to noncontrolling interest in Citree, including: (i) $147,500,000 in initial cash consideration funded from the proceeds of the sugarcane disposition and new term loan debt; (ii) up to $7,500,000 in additional cash consideration to be released from escrow in equal parts, subject to certain limitations, on December 1, 2015 and June 1, 2016; (iii) the refinancing of Orange-Co’s outstanding debt including approximately $92,290,000 in term loan debt and a working capital facility of approximately $27,857,000 and (iv) the assumption of certain other liabilities totaling approximately $4,705,000. On December 1, 2014, Alico deposited an irrevocable standby letter of credit issued by Rabo Agrifinance, Inc. in the aggregate amount of $7,500,000 into an escrow account to fund the additional cash consideration. On December 1, 2015, the Company paid $3,750,000 of additional consideration on the Orange-Co acquisition, as contemplated by the Orange-Co Purchase Agreement. Alico's $7,500,000 irrevocable letter of credit securing the payment of the additional consideration was extended and modified to reflect the remaining amount of $3,750,000, securing the final payment due on June 1, 2016, subject to certain limitations. The final cash consideration payment is recorded in accrued liabilities in current liabilities in the Condensed Combined Consolidated Balance Sheet as of March 31, 2016.

This acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while transaction and integration costs associated with the acquisition were expensed as incurred. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and noncontrolling interests is recognized as goodwill. All goodwill recognized will be deductible for income tax purposes.

On the acquisition date, the initial accounting for the business combination was not complete, and the total assets acquired and liabilities assumed were based on preliminary information and were subject to adjustment as new information was obtained. As a result of refinements to the preliminary purchase price allocation, an adjustment to the fair value of total assets acquired resulted in an increase of approximately $1,000,000 during the fiscal year ended September 30, 2015.

For the six months ended March 31, 2015 the Company incurred approximately $3,037,000 in professional and legal costs in connection with the Orange-Co acquisition. These costs are included in general and administrative expenses in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income.

The following table summarizes the final allocation of the acquisition cost to the assets acquired and liabilities assumed at the date of acquisition, based on their estimated fair values:

Asset acquisition
(in thousands)
	Amount
Assets:
Accounts receivable	$	888
Other current assets	845
Inventories	35,562
Property and equipment	—
Citrus Trees	164,123
Land	63,395
Equipment and other facilities	13,431
Goodwill	2,246
Other assets	2,140
Total assets, net of cash acquired	$	282,630
Liabilities:
Accounts payable and accrued liabilities	$	4,205
Debt	500
Contingent consideration	7,500
Total liabilities assumed	$	12,205
Assets acquired less liabilities assumed	$	270,425
Less: fair value attributable to noncontrolling interest	(4,838		)
Total purchase consideration	$	265,587
Cash proceeds from sugarcane disposition	$	97,126
Working capital line of credit	27,857
Term loans	140,604
Total purchase consideration	$	265,587

Sugarcane Land

On November 21, 2014, the Company completed the sale of approximately 36,000 acres of land used for sugarcane production and land leasing in Hendry County, Florida to Global Ag Properties, LLC (“Global”) for approximately $97,900,000 in cash. It had previously leased approximately 30,600 of these acres to United States Sugar Corporation (the “USSC Lease”). The USSC Lease was assigned to Global in conjunction with the land sale.

Net cash proceeds from the sugarcane land sale of approximately $97,126,000 were deposited with a Qualified Intermediary in anticipation of the Orange-Co asset acquisition in a tax deferred like-kind exchange, pursuant to Internal Revenue Code Section 1031.

The sales price is subject to post-closing adjustments over a ten (10)-year period. The Company realized a gain of approximately $42,753,000 on the sale. Initially, $29,140,000 of the gain was deferred due to the Company’s continuing involvement in the property pursuant to a post-closing agreement and the potential price adjustments. The deferral represents the Company’s estimate of the maximum exposure to loss as a result of the continuing involvement. A net gain of approximately $13,613,000 was recognized on the sale and is recognized in Other income (expense) in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income for the six months ended March 31, 2015.

On May 1, 2015, the Company made a payment of $1,347,000 to Global pursuant to the sales contract. USSC’s lease is tied to the market price of sugar, and this payment is required annually in advance, to supplement the lease paid by USSC in the event that the sugar prices are below certain thresholds. Approximately $463,000 of this payment is included in prepaid expenses and other current assets in the Condensed Combined Consolidated Balance Sheet as of March 31, 2016, and the Company has recognized approximately $332,000 in interest expense and approximately $760,000 of the deferred gain for the three months ended March 31, 2016, and approximately $696,000 in interest expense and approximately $902,000 of the deferred gain for the six months ended March 31, 2016.

As a result of the disposition of its sugarcane land, the Company is no longer involved in sugarcane operations and, as of November 21, 2014, the Improved Farmland segment was no longer material to its business; however, the sugarcane operation has not been classified as a discontinued operation due to the post-closing adjustments, amongst other involvement, as described above. Effective October 1, 2015, the Improved Farmland reporting segment is now included in the Other Operations reporting segment.

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Common Control Acquisition

6 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Common Control Acquisition

Common Control Acquisition

The Company completed the Merger with Silver Nip Citrus on February 28, 2015 (see Note 1, “Basis of Presentation - Description of Business”). Silver Nip Citrus owns approximately 7,400 acres of land, consisting primarily of citrus groves, in seven Florida counties (Polk, Hardee, Osceola, Martin, Highlands, Charlotte and Collier). Substantially all of its revenues derive from citrus operations. As the Company and Silver Nip Citrus were under common control at the time of the Merger, the results of operations have been combined for the Company and Silver Nip Citrus from the date common control began, November 19, 2013.

Separate results for the Company and Silver Nip Citrus for the three and six months ended March 31, 2015 and are as follows:

(in thousands except per share amounts)
	Three months ended						Six months ended
	March 31, 2015						March 31, 2015
			Silver Nip						Silver Nip
	Alico		Citrus		Total		Alico		Citrus		Total
Operating revenue	$	52,210	$	7,802	$	60,012	$	68,368	$	10,714	$	79,082
Gross profit	$	9,951	$	1,725	$	11,676	$	13,095	$	1,853	$	14,948
Income from operations	$	6,623	$	1,554	$	8,177	$	4,339	$	1,627	$	5,966
Net income	$	3,363	$	863	$	4,226	$	9,139	$	294	$	9,433
Earnings per common share:
Basic	$	0.41	$	0.10	$	0.51	$	1.17	$	0.04	$	1.21
Diluted	$	0.41	$	0.10	$	0.51	$	1.17	$	0.04	$	1.21

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Long-Term Debt and Lines of Credit

6 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt and Lines of Credit

Long-Term Debt and Lines of Credit

	March 31,		September 30,
	2016		2015
	(in thousands)
Long-term debt, net of current portion:
Metropolitan Life Insurance Company and New England Life Insurance Company fixed rate term loans in the original principal amount of $125,000,000: the loans bear interest at the rate of 4.15% per annum. The loans are collateralized by real estate and mature in November 2029.	$	108,438	$	111,563
Metropolitan Life Insurance Company and New England Life Insurance Company variable rate term loans in the original principal amounts of $57,500,000: the variable interest rate was approximately 2.12% per annum as of March 31, 2016. The loans are collateralized by real estate and mature in November 2029.	53,906		55,344
Metropolitan Life Insurance Company term loan: the loan bears interest at the rate of 5.30% per annum as of March 31, 2016. A final advance of $2,500,000 was made on April 27, 2016. The interest rate was adjusted to 5.28% on the date of the final advance. The loan is collateralized by real estate and matures in February 2029.	2,500		2,500
Prudential Mortgage Capital Company, LLC fixed rate term loans: the loans bear interest at the rate of 5.35% per annum. The loans are collateralized by real estate and mature in June 2033.	24,770		25,350
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.85% per annum. The loan is collateralized by real estate and matures in September 2021.	5,225		5,335
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.45% per annum as of March 31, 2016. The loan is collateralized by real estate and matures in September 2039.	5,225		5,335
Note payable to a financing company collateralized by equipment and maturing in December 2016.	36		54
	200,100		205,481
Less current portion	4,511		4,511
Long-term debt	$	195,589	$	200,970

	March 31,		September 30,
	2016		2015
	(in thousands)
Lines of Credit:
Metropolitan Life Insurance Company and New England Life Insurance Company revolving line of credit: this $25,000,000 line bears interest at a variable rate which was 2.12% per annum as of March 31, 2016. The line is collateralized by real estate and matures in November 2019. Availability under the line was $20,000,000 as of March 31, 2016.	$	5,000	$	—
Rabo Agrifinance, Inc. working capital line of credit: this $70,000,000 line bears interest at a variable rate which was 2.19% per annum as of March 31, 2016. The line is collateralized by current assets and certain personal property and matures in November 2016. Availability under the line was approximately $56,000,000 as of March 31, 2016.	—		—
Lines of Credit	$	5,000	$	—

Future maturities of debt and lines of credit as of March 31, 2016 are as follows:

(in thousands)
Due within one year	$	4,511
Due between one and two years	8,250
Due between two and three years	10,825
Due between three and four years	15,925
Due between four and five years	10,975
Due beyond five years	154,614
Total future maturities	$	205,100

Debt Refinancing 

The Company refinanced its outstanding debt obligations on December 3, 2014 in connection with the Orange-Co acquisition (see Note 4 “Acquisitions and Dispositions”). The new credit facilities initially included $125,000,000 in fixed interest rate term loans, $57,500,000 in variable interest rate term loans, 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 new term loans and RLOC are secured by approximately 39,300 gross acres of citrus groves and 14,000 gross acres of farm and ranch land. The WCLC is secured by the Company’s current assets and certain other personal property owned by the Company.

The new term loans are subject to quarterly principal payments of $2,281,250, and mature November 1, 2029. The fixed-rate term loans bear interest at 4.15% per annum, and the variable-rate term loans bear interest at a rate equal to 90 day LIBOR plus 150 basis points (the “LIBOR spread”). The LIBOR spread is subject to adjustment by the lender on May 1, 2017, and every two years thereafter until maturity. Interest on the term loans is payable quarterly.

The interest rate on the variable rate term loans was 2.12% per annum as of March 31, 2016. 

The Company may prepay up to $8,750,000 of the 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 and remains available to reduce future mandatory principal payments when the Company elects to do so. The 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 is subject to adjustment by the lender on May 1, 2017, and 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 2.12% per annum as of March 31, 2016. Availability under the RLOC was $20,000,000 as of March 31, 2016.

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 2.19% per annum as of March 31, 2016. The WCLC facility matures November 1, 2016. Availability under the WCLC was approximately $56,000,000 as of March 31, 2016.

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.

The WCLC agreement provides for Rabo to issue up to $20,000,000 in letters of credit on the Company’s behalf. As of March 31, 2016, there was approximately $13,984,000 in outstanding letters of credit, which correspondingly reduced the Company's availability under the line of credit. There was no outstanding balance on the WCLC as of March 31, 2016.

The Company capitalized approximately $2,834,000 of debt financing costs related to the refinancing. These costs, together with approximately $339,000 of costs related to the retired debt, will be amortized to interest expense over the applicable terms of the loans. The unamortized balance of deferred financing costs related to the financing was approximately $2,178,000 at March 31, 2016.

The Company recognized a loss on extinguishment of debt of approximately $964,000 related to the refinancing for the six months ended March 31, 2015. The loss on extinguishment of debt is included in Other income (expense) in the Condensed Combined Consolidated Statement of Operations and Comprehensive Income for the three months ended March 31, 2015.

The new 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 $161,600,000 for the year ending September 30, 2016, (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. As of March 31, 2016, the Company was in compliance with all of the financial covenants.

The credit facilities also include a Met Life term loan secured by real estate owned by Citree. This is a $5,000,000 credit facility that initially bore interest at 5.49% 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%. The loan matures in February 2029. The unamortized balance of deferred financing costs related to this loan was approximately $55,000 at March 31, 2016.

Silver Nip Citrus Debt

Silver Nip Citrus has various loans payable to Prudential Mortgage Capital Company, LLC (“Prudential”) as described below.

There are two fixed-rate term loans, with an original combined balance of $27,550,000, bearing interest at 5.35% per annum. Principal of $290,000 is payable quarterly, together with accrued interest. The Company may prepay up to $5,000,000 of principal without penalty. On February 15, 2015, Silver Nip Citrus made a prepayment of $750,000. The loans are collateralized by real estate in Collier, Hardee, Highlands, Martin, Osceola and Polk Counties, Florida.

Silver Nip Citrus entered into two 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, while the other bears interest at 3.45% per annum. The note with an interest rate of 3.85% per annum 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.

Silver Nip Citrus had a $6,000,000 revolving line of credit with Prudential. This line of credit was paid in full and terminated on April 28, 2015.

The unamortized balance of deferred financing costs related to the Silver Nip Citrus debt was approximately $365,000 at March 31, 2016.

The Silver Nip Citrus facilities are subject to a financial debt covenant requiring a current ratio of at least 1.50 to 1.00, measured at the end of each fiscal year. Silver Nip Citrus was in compliance with this covenant as of June 30, 2015, the most recent measurement date.

The Silver Nip Citrus facilities are personally guaranteed by George Brokaw, Remy Trafelet and Clayton Wilson.

Modification of Credit Agreements

During the six months ended March 31, 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.

Interest costs expensed and capitalized were as follows:

(in thousands)
	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Interest expense	$	2,475	$	2,257	$	4,978	$	3,636
Interest capitalized	38		159		81		212
Total	$	2,513	$	2,416	$	5,059	$	3,848

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Earnings Per Common Share

6 Months Ended

Mar. 31, 2016

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 six months ended March 31, 2016 and 2015, basic and diluted earnings per common share were as follows:

(in thousands except per share amounts)
	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Net income attributable to Alico, Inc. common stockholders	$	8,734	$	4,226	$	5,722	$	9,433
Weighted average number of common shares outstanding - basic	8,286		8,272		8,294		7,815
Dilutive effect of equity awards	17		—		15		—
Weighted average number of common shares outstanding - diluted	8,303		8,272		8,309		7,815
Net income per common shares attributable to Alico, Inc. common stockholders:
Basic	$	1.05	$	0.51	$	0.69	$	1.21
Diluted	$	1.05	$	0.51	$	0.69	$	1.21

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Segment Information

6 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Segments

Operating segments are defined in ASC Topic 280, "Segment Reporting" 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 are evaluated regularly by the Company’s CODM in deciding how to assess performance and allocate resources. For the fiscal year ended September 30, 2015, the Company’s CODM assessed performance and allocated resources based on five operating segments: Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Other Operations. The former Citrus Groves and Agricultural Supply Chain Management segments have been combined in Orange Co. and, as a result of the disposition of its sugarcane land in fiscal year 2015, the Company is no longer involved in sugarcane, and the Improved Farmland segment is no longer material to its business and has been combined in Other Operations. Effective October 1, 2015, the Company’s CODM will assess performance and allocate resources based on three operating segments: Orange Co., Conservation and Environmental Resources and Other Operations.

The Company manages its land based upon its primary usage, and reviews its performance based upon two primary classifications: Orange Co. and Conservation and Environmental Resources.  In addition, Other Operations include leasing mines and oil extraction rights to third parties, as well as leasing improved farmland to third parties.  

Total revenues represent sales to unaffiliated customers, as reported in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income. Intersegment sales and transfers are accounted for by the Company as if the sales or transfers were to third parties at current market prices. 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.  All intercompany transactions between the segments have been eliminated.

Information by business segment is as follows:

(in thousands)	Three Months Ended March 31,					Six Months Ended March 31,
	2016		2015			2016			2015
Revenues:
Orange Co.	$	70,982	$	58,557		$	90,277		$	75,550
Conservation and Environmental Resources	644		309			1,651			1,145
Other Operations	263		1,146			565			2,387
Total revenues	71,889		60,012			92,493			79,082
Operating expenses:
Orange Co.	51,716		46,383			69,324			60,597
Conservation and Environmental Resources	581		623			2,141			1,368
Other Operations	77		1,330			147			2,169
Total operating expenses	52,374		48,336			71,612			64,134
Gross profit:
Orange Co.	19,266		12,174			20,953			14,953
Conservation and Environmental Resources	63		(314		)	(490		)	(223		)
Other Operations	186		(184		)	418			218
Total gross profit	$	19,515	$	11,676		$	20,881		$	14,948
Depreciation, depletion and amortization:
Orange Co.	$	3,391	$	3,152		$	6,748		$	5,098
Conservation and Environmental Resources	297		242			529			485
Other Operations	94		270			200			398
Other Depreciation, Depletion and Amortization	254		(159		)	567			508
Total depreciation, depletion and amortization	$	4,036	$	3,505		$	8,044		$	6,489

(in thousands)	March 31,		September 30,
	2016		2015
Assets:
Orange Co.	$	418,191	$	392,329
Conservation and Environmental Resources	14,418		13,779
Other Operations	21,235		31,468
Other Corporate Assets	10,008		22,512
Total Assets	$	463,852	$	460,088

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Stockholders' Equity

6 Months Ended

Mar. 31, 2016

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). Stock-based compensation expense for the Board of Director fees and Named Executive Officers was approximately and $251,000 and $496,000 for the three and six months ended March 31, 2016, respectively, and $254,000 and $509,000 for the three and six months ended March 31, 2015, respectively. Stock compensation expense is recognized in corporate, general and administrative expenses in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income.

In fiscal year 2015, the Board of Directors authorized the repurchase of up to 170,000 shares of the Company’s common stock beginning March 25, 2015, and continuing through December 31, 2016 (the "2015 Authorization"). The stock repurchases 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 six months ended March 31, 2016, the Company had purchased the 78,446 shares it had remaining under the 2015 Authorization.

The following table illustrates the Company’s treasury stock purchases and issuances for the six months ended March 31, 2016:

(in thousands, except share amounts)
	Shares		Cost
Balance as of September 30, 2015	90,565		$	3,962
Purchased	78,446		3,141
Issued to Directors	(22,006	)	(469		)
Issued to former Silver Nip Citrus equity holders	(32,923	)	(1,483		)
Balance as of March 31, 2016	114,082		$	5,151

In fiscal year 2016, the Board of Directors authorized the repurchase of up to 50,000 shares of the Company’s common stock beginning February 18, 2016 and continuing through February 17, 2017 (the "2016 Authorization"). The stock repurchases will be made through open market transactions at times and in such amounts as the Company’s broker determine subject to the provisions of SEC Rule 10b-18. The Company also adopted a Rule 10b5-1 share repurchase plan under the Securities Exchange Act of 1934 (the “Plan”) in connection with its share repurchase authorization. The Plan allows the Company to repurchase its shares at times when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. For the six months ended March 31, 2016, the Company did not purchase any shares in accordance with the 2016 Authorization and has available to purchase 50,000 shares in accordance with the 2016 Authorization.

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Commitments and Contingencies

6 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Letters of Credit

The Company has outstanding standby letters of credit in the total amount of approximately $13,984,000 and $17,498,500 at March 31, 2016 and September 30, 2015, respectively, to secure its various contractual obligations.

Legal Proceedings

On March 11, 2015 a putative stockholder class action lawsuit captioned Shiva Y. Stein v. Alico, Inc., et al., No. 15-CA-000645 (the “Stein lawsuit”) was filed in the Circuit Court of the Twentieth Judicial District in and for Lee County, Florida, against Alico, Inc. (“Alico”), its current and certain former directors, 734 Citrus Holdings, LLC d/b/a Silver Nip Citrus, 734 Investors, LLC (“734 Investors”), 734 Agriculture, LLC (“734 Agriculture”) and 734 Sub, LLC (“734 Sub”) in connection with the acquisition of Silver Nip by Alico (the “Acquisition”). The complaint alleges that Alico’s directors at the time of the Acquisition, 734 Investors, and 734 Agriculture, breached fiduciary duties to Alico stockholders in connection with the Acquisition, and that Silver Nip and 734 Sub aided and abetted such breaches. The lawsuit seeks, among other things, monetary and equitable relief, costs, fees (including attorneys’ fees) and expenses.

On May 6, 2015 a putative stockholder class action and derivative lawsuit captioned Ruth S. Dimon Trust v. George R. Brokaw, et al., No. 15-CA-001162 (the “Dimon lawsuit”) was filed in the Circuit Court of the Twentieth Judicial District in and for Lee County, Florida, against Alico, its current directors, Silver Nip Citrus, 734 Investors and 734 Agriculture, in connection with the Acquisition of Silver Nip Citrus by Alico. The complaint alleges claims for breach of fiduciary duty, gross mismanagement, waste of corporate assets and tortious interference with contract against Alico’s directors, unjust enrichment against three of the directors and aiding and abetting breach of fiduciary duty against Silver Nip Citrus, 734 investors and 734 Agriculture. The lawsuit seeks, among other things, rescission of the Acquisition, an injunction prohibiting certain payments to Silver Nip Citrus members, unspecified damages, disgorgement of profits, costs, fees (including attorneys’ fees) and expenses.

On July 17, 2015 the plaintiffs in the Stein and Dimon lawsuits filed a stipulation and proposed order consolidating their cases for all purposes under the caption, In re Alico, Inc. Shareholder Litigation, Master File No. 15-CA-000645 (the “Consolidated Action”) and seeking the appointment of a lead plaintiff and lead and liaison counsel. The court entered that proposed order on July 21, 2015.

On October 16, 2015, the lead plaintiff in the Consolidated Action reported to the Court that the parties reached an agreement in principle to settle the Consolidated Action and other claims related to the Acquisition and that they were in the process of formally documenting their agreements. The proposed settlement contemplates that Alico will adopt certain changes to its corporate governance practices, policies and procedures concerning related party transactions, that the Consolidated Action will be dismissed and that all claims that were or could have been asserted challenging any aspect of the Acquisition will be released. On March 31, 2016, the parties entered into a Stipulation of Settlement.  The parties filed an Amended Stipulation of settlement with the Court on April 22, 2016.

On April 28, 2016, the Court entered an order preliminarily approving the settlement and providing for notice to relevant Alico shareholders.  The settlement remains subject to final judicial approval following notice to the relevant Alico shareholders and a settlement hearing at which the Court will consider the fairness, reasonableness and adequacy of the settlement. In connection with the proposed settlement, the parties contemplate that plaintiffs' counsel will seek an award of attorneys' fees and expenses. There can be no assurance that the Court will approve the settlement.

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 current legal proceedings to which the Company is a party to or of which any of its property is subject to that it believes will have a material adverse effect on its business financial position or results of operations.

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Related Party Transactions

6 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Silver Nip Citrus Merger Agreement

Effective February 28, 2015, the Company completed the merger (“Merger”) with 734 Citrus Holdings, LLC (“Silver Nip Citrus”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with 734 Sub, LLC, a wholly owned subsidiary of the Company (“Merger Sub”), Silver Nip Citrus and, solely with respect to certain sections thereof, the equity holders of Silver Nip Citrus. The ownership of Silver Nip Citrus was held by 734 Agriculture, 74.89%, Mr. Clay Wilson, Chief Executive Officer of the Company, 5% and an entity controlled by Mr. Clay Wilson owned, 20.11%.

734 Agriculture has control over both Silver Nip Citrus and the Company, and therefore the Merger was treated as a common control acquisition.

At closing of the Merger, Merger Sub merged with and into Silver Nip Citrus, with Silver Nip Citrus and its affiliates surviving the Merger as wholly owned subsidiaries of the Company. Pursuant to the Merger Agreement, at closing, the Company issued 923,257 shares of the Company’s common stock, par value $1.00 per share, to the holders of membership interests in Silver Nip Citrus. Silver Nip Citrus’ outstanding net indebtedness at the closing of the Merger was approximately $40,278,000, and other liabilities totaled approximately $6,952,000. The Company acquired assets at with a book value of approximately $65,739,000, and total net assets of approximately $18,470,000. The shares issued were recorded at the carrying amount of the net assets transferred. The closing price of the Company's common stock on February 27, 2015 was $45.67.

Through March 31, 2016, the former holders of membership interests (the "Members") in Silver Nip Citrus earned and were issued an additional 148,705 shares of the Company’s common stock pursuant to the Merger Agreement. The additional purchase consideration was based on the value of the proceeds received by the Company from the sale of citrus fruit harvested on Silver Nip Citrus’s citrus groves for 2014-2015 citrus harvest season. The Members are not expected to receive any additional Company common shares related to the 2014-2015 harvest season.

For the six months ended March 31, 2015 the Company incurred approximately $811,000 in professional and legal costs in connection with the Merger. These costs are included in corporate, general and administrative expenses in the Condensed Combined Consolidated Statements of Operations and Comprehensive Income for the six months ended March 31, 2015.

JD Alexander

On November 6, 2013, JD Alexander tendered his resignation as Chief Executive Officer, and as an employee of the Company, subject to and effective immediately after the Closing of the Share Purchase transaction on November 19, 2013. Mr. Alexander’s resignation included a waiver of any rights to any payments under his Change-in-Control Agreement with the Company. On November 6, 2013, the Company and Mr. Alexander also entered into a Consulting and Non-Competition Agreement under which (i) Mr. Alexander will provide consulting services to the Company during the two-year period after the Closing, (ii) Mr. Alexander 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 Closing, and (iii) the Company paid Mr. Alexander for such services and covenants $2,000,000 in twenty-four monthly installments. The Company expensed approximately $0 and $250,000 under the Consulting and Non-Competition Agreement for the three months ended March 31, 2016 and 2015, respectively, and expensed approximately $167,000 and $500,000 for the six months ended March 31, 2016 and 2015, respectively.

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 will provide 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 will pay Mr. Smith up to $1,225,000 for such services and covenants. The Company’s business operations previously managed by Mr. Smith are now managed by Clay Wilson, Chief Executive Officer of Alico. The Company expensed approximately $50,000 and $0 under the Consulting and Non-Competition Agreement for the three months ended March 31, 2016 and 2015, respectively, and approximately $100,000 and $0 for the six months ended March 31, 2016 and 2015, respectively.

W. Mark Humphrey

On June 1, 2015, W. Mark Humphrey tendered his resignation as Senior Vice President and Chief Financial Officer, and as an employee of the Company. On June 1, 2015, the Company and Mr. Humphrey entered into a Separation and Consulting Agreement under which (i) Mr. Humphrey will provide consulting services to the Company for a one-year period after his resignation, and (ii) Mr. Humphrey will be entitled to the following benefits: (a) $100,000 in cash in a lump sum and (b) a consulting fee of $350,000 payable monthly during the period commencing on his resignation date and ending on the first anniversary of his resignation date. The Company expensed approximately $92,000 and $180,000 under the Separation and Consulting Agreement for the three and six months ended March 31, 2016. On June 1, 2015 the Company appointed John E. Kiernan to serve as Senior Vice President and Chief Financial Officer. Effective September 1, 2015, Mr. Humphrey was appointed to serve as Senior Vice President and Chief Accounting Officer, and will continue to receive monthly payments under The Consulting Agreement through the first anniversary of his resignation date.

Shared Services Agreement

The Company has a shared services agreement with Trafelet Brokaw & Co., LLC (“TBCO”), whereby the Company will reimburse TBCO for use of office space and various administrative and support services. The annual cost of the office and services is approximately $400,000. The agreement will expire in June 2016. The Company expensed approximately $99,000 and $0 under the Shared Services Agreement for the three months ended March 31, 2016 and 2015, respectively, and approximately $198,000 and $0 for the six months ended March 31, 2016 and 2015, respectively.

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Accrued Liabilities

6 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

Accrued Liabilities consist of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,		September 30,
	2016		2015
Ad valorem taxes	$	1,020	$	2,640
Accrued interest	1,218		1,155
Accrued employee wages and benefits	240		427
Inventory received but not invoiced	2,909		581
Accrued dividends	498		501
Current portion of deferred retirement obligations	342		342
Additional purchase price consideration	3,750		7,500
Other accrued liabilities	840		669
Total accrued liabilities	$	10,817	$	13,815

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Basis of Presentation (Policies)

6 Months Ended

Mar. 31, 2016

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 combined consolidated basis. These accompanying unaudited condensed combined 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 and Combined Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015, and filed with the SEC on December 10, 2015.

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, 2016. All intercompany transactions and account balances between the consolidated and combined businesses have been eliminated.

Effective February 28, 2015, the Company completed the merger (“Merger”) with 734 Citrus Holdings, LLC (“Silver Nip Citrus”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with 734 Sub, LLC, a wholly owned subsidiary of the Company (“Merger Sub”), Silver Nip Citrus and, solely with respect to certain sections thereof, the equity holders of Silver Nip Citrus. The ownership of Silver Nip Citrus was held by 734 Agriculture, 74.89%, Mr. Clay Wilson, Chief Executive Officer of the Company, 5% and an entity controlled by Mr. Clay Wilson owned, 20.11%.

As the Company and Silver Nip Citrus were under common control at the time of the Merger, it is required under U.S. GAAP to account for this common control acquisition in a manner similar to the pooling of interest method of accounting. Under this method of accounting, Alico's Condensed Combined Consolidated Balance Sheets as of March 31, 2016 and September 30, 2015 reflect Silver Nip Citrus’ historical carryover basis in the assets and liabilities instead of reflecting the fair market value of the assets and liabilities. The Company has also retrospectively recast its financial statements to combine the operating results of the Company and Silver Nip Citrus from the date common control began, November 19, 2013.

Correction of an Immaterial Error in Prior Periods

During the six months ended March 31, 2016, the Company identified a $1,494,000 error related to an understatement of income tax expense for the fiscal year ended September 30, 2014. As previously noted, the Company and Silver Nip Citrus were under common control at the time of the Merger and accordingly we retrospectively recast our financial statements to combine the operating results of the Company and Silver Nip Citrus from the date common control began, November 19, 2013. Silver Nip Citrus had a September 30 year end for tax reporting purposes at the time of the Merger. The tax returns for the year ended September 30, 2014 and the short period ended February 28, 2015, date of the Merger, were prepared and filed in the second quarter of fiscal 2016. The Company reviewed the as filed tax returns in an effort to true-up the tax provision. During this review, the Company identified the error that impacts the Silver Nip Citrus financial condition and results of operations as of and for the period ended June 30, 2014.

In accordance with Financial Accounting Standards Board Accounting Standards Codification 250, Accounting Changes and Error Corrections, we evaluated the materiality of the error from quantitative and qualitative perspectives. We concluded that the error was immaterial to the Company's prior period interim and annual consolidated and combined financial statements, and, accordingly no amendments to previously filed interim or annual periodic reports are required. Consequently, the Company will adjust for this error by revising its fiscal 2014 financial statements, when presented in future filings, by increasing income tax expense and its long term deferred tax liability by $1,494,000. The Company recognized the cumulative effect of the error on periods prior to those presented herein by increasing long term deferred tax liability and reducing additional paid-in capital by $1,494,000 for the fiscal year ended September 30, 2015. The pre-merger net earnings of Silver Nip Citrus are classified as additional paid-in capital in the accompanying Condensed Combined Consolidated Balance Sheets as of March 31, 2016 and September 30, 2015.

Change in Fiscal Year of Subsidiary

Change in Fiscal Year of Subsidiary

Silver Nip Citrus’ fiscal year end was previously June 30, and their financial condition and results of operations as of and for the fiscal years ended June 30, 2015 and 2014 were included in the financial condition and results of operations of the Company as of and for the fiscal years ended September 30, 2015 and 2014, respectively. Effective October 1, 2015, the fiscal year end for Silver Nip Citrus was changed to September 30 to reflect that of the Company. Accordingly, the Company’s financial condition as of March 31, 2016 and September 30, 2015 now includes the financial condition of Silver Nip Citrus as of March 31, 2016 and September 30, 2015, respectively, and the Company’s results of operations for the three and six months ended March 31, 2016 and 2015 now includes the Silver Nip Citrus results of operations for the three and six months ended March 31, 2016 and 2015, respectively.

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. For the fiscal year ended September 30, 2015, the Company’s CODM assessed performance and allocated resources based on five operating segments: Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Other Operations. The former Citrus Groves and Agricultural Supply Chain Management segments have been combined in Orange Co. and, as a result of the disposition of the Company's sugarcane land in fiscal year 2015, it is no longer involved in sugarcane, and the Improved Farmland segment is no longer material to its business and has been combined in Other Operations. Effective October 1, 2015, the Company’s CODM will assess performance and allocate resources based on three operating segments: Orange Co., Conservation and Environmental Resources and Other Operations. Disclosures related to the three and six months ended March 31, 2015 have been revised to be consistent with the current operating segment structure.

Principles of Consolidation and Noncontrolling Interest in Consolidated Affiliate

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. The Financial Statements represent the Condensed Combined Consolidated Balance Sheets, Statements of Operations and Comprehensive Income and Statements of Cash Flows of Alico, Inc. and its subsidiaries. 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 810, “Consolidations”in its consolidation process. All significant intercompany balances and transactions have been eliminated in consolidation.

Noncontrolling Interest in Consolidated Affiliate

The Financial Statements include all assets and liabilities of the less-than-100%-owned affiliate the Company controls, Citree Holdings I, LLC (“Citree”). Accordingly, the Company has recorded a noncontrolling interest in the equity of such entity.

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.

Business Combinations

Business Combinations

The Company accounts for its business acquisitions under the acquisition method of accounting as indicated in FASB ASC No. 805, “Business Combinations”, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed and any noncontrolling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities and noncontrolling interest in the acquiree, based on fair value estimates as of the date of acquisition. In accordance with FASB ASC No. 805, the Company recognizes and measures goodwill, if any, as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired.

When Alico acquires a business from an entity under common control, whereby the companies are ultimately controlled by the same party, or parties, both before and after the transaction, it is treated similarly to the pooling of interest method of accounting. The assets and liabilities are recorded at the transferring entity’s historical cost instead of reflecting the fair market value of assets and liabilities.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present all deferred tax liabilities and assets as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted. The standard can be applied either prospectively to all deferred tax liabilities and assets, or retrospectively to all periods presented. As this standard impacts presentation only, the adoption of ASU 2015-17 is not expected to have an impact on the Company's financial condition, results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01 “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" (“ASU 2016-01”). This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to estimate fair value. A policy election can be made for these investments, whereby estimated fair value may be measured at cost, and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, and it will become effective for Alico at the beginning of its first quarter of fiscal 2019.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)." This guidance will require entities that enter into leases as a lessee to recognize right-of-use assets and lease liabilities for those leases classified as operating leases under previous GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, and it will become effective for Alico at the beginning of its first quarter of fiscal 2020.

In March 2016, the FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." The amendment clarifies the implementation guidance for principal versus agent considerations as contained in ASU No. 2014-09, Revenue from Contracts with Customers. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to a customer. ASU No. 2016-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption of ASU No. 2016-08 is permitted but not before December 15, 2016. The Company is currently evaluating the impact of ASU No. 2016-08 on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is  currently evaluating the new guidance to determine the impact it may have its consolidated financial statements.

Seasonality

Seasonality

The Company is primarily engaged in the production of fruit for sale to citrus markets, which is of a seasonal nature, and subject to the influence of natural phenomena and wide price fluctuations. Historically, the second and third quarters of its fiscal year generally produce the majority of its annual revenue, and working capital requirements are typically greater in the first and fourth quarters of the fiscal year. The results of the reported periods herein are not necessarily indicative of the results for any other interim periods or the entire fiscal year.

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Inventories (Tables)

6 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,		September 30,
	2016		2015
Unharvested fruit crop on the trees	$	38,431	$	52,497
Beef cattle	2,279		1,612
Citrus tree nursery	3,107		2,854
Other	2,604		1,310
Total inventories	$	46,421	$	58,273

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Property and Equipment, Net (Tables)

6 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

Property and equipment, net consists of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,			September 30,
	2016			2015
Citrus trees	$	249,188		$	247,488
Equipment and other facilities	58,454			56,200
Buildings and improvements	21,391			21,259
Breeding herd	12,546			11,924
Total depreciable properties	341,579			336,871
Less accumulated depreciation and depletion	(77,672		)	(70,200		)
Net depreciable properties	263,907			266,671
Land and land improvements	115,193			114,428
Net property and equipment	$	379,100		$	381,099

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Acquisition and Dispositions (Tables)

6 Months Ended

Mar. 31, 2016

Orange-Co

Business Acquisition [Line Items]

Schedule of assets acquired and liabilities assumed

The following table summarizes the final allocation of the acquisition cost to the assets acquired and liabilities assumed at the date of acquisition, based on their estimated fair values:

Asset acquisition
(in thousands)
	Amount
Assets:
Accounts receivable	$	888
Other current assets	845
Inventories	35,562
Property and equipment	—
Citrus Trees	164,123
Land	63,395
Equipment and other facilities	13,431
Goodwill	2,246
Other assets	2,140
Total assets, net of cash acquired	$	282,630
Liabilities:
Accounts payable and accrued liabilities	$	4,205
Debt	500
Contingent consideration	7,500
Total liabilities assumed	$	12,205
Assets acquired less liabilities assumed	$	270,425
Less: fair value attributable to noncontrolling interest	(4,838		)
Total purchase consideration	$	265,587
Cash proceeds from sugarcane disposition	$	97,126
Working capital line of credit	27,857
Term loans	140,604
Total purchase consideration	$	265,587

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Common Control Acquisition (Tables)

6 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Schedule of result of operations

Separate results for the Company and Silver Nip Citrus for the three and six months ended March 31, 2015 and are as follows:

(in thousands except per share amounts)
	Three months ended						Six months ended
	March 31, 2015						March 31, 2015
			Silver Nip						Silver Nip
	Alico		Citrus		Total		Alico		Citrus		Total
Operating revenue	$	52,210	$	7,802	$	60,012	$	68,368	$	10,714	$	79,082
Gross profit	$	9,951	$	1,725	$	11,676	$	13,095	$	1,853	$	14,948
Income from operations	$	6,623	$	1,554	$	8,177	$	4,339	$	1,627	$	5,966
Net income	$	3,363	$	863	$	4,226	$	9,139	$	294	$	9,433
Earnings per common share:
Basic	$	0.41	$	0.10	$	0.51	$	1.17	$	0.04	$	1.21
Diluted	$	0.41	$	0.10	$	0.51	$	1.17	$	0.04	$	1.21

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Long-Term Debt and Lines of Credit (Tables)

6 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of long-term debt, net of current portion

	March 31,		September 30,
	2016		2015
	(in thousands)
Long-term debt, net of current portion:
Metropolitan Life Insurance Company and New England Life Insurance Company fixed rate term loans in the original principal amount of $125,000,000: the loans bear interest at the rate of 4.15% per annum. The loans are collateralized by real estate and mature in November 2029.	$	108,438	$	111,563
Metropolitan Life Insurance Company and New England Life Insurance Company variable rate term loans in the original principal amounts of $57,500,000: the variable interest rate was approximately 2.12% per annum as of March 31, 2016. The loans are collateralized by real estate and mature in November 2029.	53,906		55,344
Metropolitan Life Insurance Company term loan: the loan bears interest at the rate of 5.30% per annum as of March 31, 2016. A final advance of $2,500,000 was made on April 27, 2016. The interest rate was adjusted to 5.28% on the date of the final advance. The loan is collateralized by real estate and matures in February 2029.	2,500		2,500
Prudential Mortgage Capital Company, LLC fixed rate term loans: the loans bear interest at the rate of 5.35% per annum. The loans are collateralized by real estate and mature in June 2033.	24,770		25,350
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.85% per annum. The loan is collateralized by real estate and matures in September 2021.	5,225		5,335
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.45% per annum as of March 31, 2016. The loan is collateralized by real estate and matures in September 2039.	5,225		5,335
Note payable to a financing company collateralized by equipment and maturing in December 2016.	36		54
	200,100		205,481
Less current portion	4,511		4,511
Long-term debt	$	195,589	$	200,970

Schedule of lines of credit

	March 31,		September 30,
	2016		2015
	(in thousands)
Lines of Credit:
Metropolitan Life Insurance Company and New England Life Insurance Company revolving line of credit: this $25,000,000 line bears interest at a variable rate which was 2.12% per annum as of March 31, 2016. The line is collateralized by real estate and matures in November 2019. Availability under the line was $20,000,000 as of March 31, 2016.	$	5,000	$	—
Rabo Agrifinance, Inc. working capital line of credit: this $70,000,000 line bears interest at a variable rate which was 2.19% per annum as of March 31, 2016. The line is collateralized by current assets and certain personal property and matures in November 2016. Availability under the line was approximately $56,000,000 as of March 31, 2016.	—		—
Lines of Credit	$	5,000	$	—

Schedule of future maturities of debt and lines of credit

Future maturities of debt and lines of credit as of March 31, 2016 are as follows:

(in thousands)
Due within one year	$	4,511
Due between one and two years	8,250
Due between two and three years	10,825
Due between three and four years	15,925
Due between four and five years	10,975
Due beyond five years	154,614
Total future maturities	$	205,100

Schedule of interest costs expensed and capitalized

Interest costs expensed and capitalized were as follows:

(in thousands)
	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Interest expense	$	2,475	$	2,257	$	4,978	$	3,636
Interest capitalized	38		159		81		212
Total	$	2,513	$	2,416	$	5,059	$	3,848

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Earnings Per Common Share (Tables)

6 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per common share

For the three and six months ended March 31, 2016 and 2015, basic and diluted earnings per common share were as follows:

(in thousands except per share amounts)
	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Net income attributable to Alico, Inc. common stockholders	$	8,734	$	4,226	$	5,722	$	9,433
Weighted average number of common shares outstanding - basic	8,286		8,272		8,294		7,815
Dilutive effect of equity awards	17		—		15		—
Weighted average number of common shares outstanding - diluted	8,303		8,272		8,309		7,815
Net income per common shares attributable to Alico, Inc. common stockholders:
Basic	$	1.05	$	0.51	$	0.69	$	1.21
Diluted	$	1.05	$	0.51	$	0.69	$	1.21

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Segment Information (Tables)

6 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of information by business segment

Information by business segment is as follows:

(in thousands)	Three Months Ended March 31,					Six Months Ended March 31,
	2016		2015			2016			2015
Revenues:
Orange Co.	$	70,982	$	58,557		$	90,277		$	75,550
Conservation and Environmental Resources	644		309			1,651			1,145
Other Operations	263		1,146			565			2,387
Total revenues	71,889		60,012			92,493			79,082
Operating expenses:
Orange Co.	51,716		46,383			69,324			60,597
Conservation and Environmental Resources	581		623			2,141			1,368
Other Operations	77		1,330			147			2,169
Total operating expenses	52,374		48,336			71,612			64,134
Gross profit:
Orange Co.	19,266		12,174			20,953			14,953
Conservation and Environmental Resources	63		(314		)	(490		)	(223		)
Other Operations	186		(184		)	418			218
Total gross profit	$	19,515	$	11,676		$	20,881		$	14,948
Depreciation, depletion and amortization:
Orange Co.	$	3,391	$	3,152		$	6,748		$	5,098
Conservation and Environmental Resources	297		242			529			485
Other Operations	94		270			200			398
Other Depreciation, Depletion and Amortization	254		(159		)	567			508
Total depreciation, depletion and amortization	$	4,036	$	3,505		$	8,044		$	6,489

(in thousands)	March 31,		September 30,
	2016		2015
Assets:
Orange Co.	$	418,191	$	392,329
Conservation and Environmental Resources	14,418		13,779
Other Operations	21,235		31,468
Other Corporate Assets	10,008		22,512
Total Assets	$	463,852	$	460,088

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Stockholders' Equity (Tables)

6 Months Ended

Mar. 31, 2016

Equity [Abstract]

Schedule of treasury stock purchases and issuances

The following table illustrates the Company’s treasury stock purchases and issuances for the six months ended March 31, 2016:

(in thousands, except share amounts)
	Shares		Cost
Balance as of September 30, 2015	90,565		$	3,962
Purchased	78,446		3,141
Issued to Directors	(22,006	)	(469		)
Issued to former Silver Nip Citrus equity holders	(32,923	)	(1,483		)
Balance as of March 31, 2016	114,082		$	5,151

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Accrued Liabilities (Tables)

6 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Schedule of accrued liabilities

Accrued Liabilities consist of the following at March 31, 2016 and September 30, 2015:

(in thousands)	March 31,		September 30,
	2016		2015
Ad valorem taxes	$	1,020	$	2,640
Accrued interest	1,218		1,155
Accrued employee wages and benefits	240		427
Inventory received but not invoiced	2,909		581
Accrued dividends	498		501
Current portion of deferred retirement obligations	342		342
Additional purchase price consideration	3,750		7,500
Other accrued liabilities	840		669
Total accrued liabilities	$	10,817	$	13,815

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Basis of Presentation (Details) a in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 01, 2015 USD ($) segment	Mar. 31, 2016 USD ($) a classification	Mar. 31, 2015 USD ($)	Mar. 31, 2016 USD ($) a classification segment	Mar. 31, 2015 USD ($)	Sep. 30, 2015 USD ($) segment	Sep. 30, 2014 USD ($)	Feb. 28, 2015
Property, Plant and Equipment [Line Items]
Number of business segments | segment	3			3		5
Ownership interest (as a percent)		51.00%	51.00%	51.00%	51.00%
Increase in income tax expense		$ 6,102,000	$ 1,127,000	$ 4,027,000	$ 4,890,000
Increase in long term deferred tax liability		25,581,000		25,581,000		$ 25,628,000
Reduction in additional paid in capital		(18,257,000)		(18,257,000)		(19,795,000)
Net loss		$ (8,724,000)	$ (4,226,000)	(5,704,000)	(9,433,000)
Citree
Property, Plant and Equipment [Line Items]
Net loss attributable to noncontrolling interest				$ 37,171	$ 14,831
734 Agriculture | Silver Nip Citrus
Property, Plant and Equipment [Line Items]
Ownership interest (as a percent)								74.89%
Mr. Clay Wilson | Silver Nip Citrus
Property, Plant and Equipment [Line Items]
Ownership interest (as a percent)								5.00%
Entity Controlled by Mr. Clay Wilson | Silver Nip Citrus
Property, Plant and Equipment [Line Items]
Ownership interest (as a percent)								20.11%
Subsidiaries
Property, Plant and Equipment [Line Items]
Decrease to total assets	$ 493,000
Net loss	$ 594,000
Land
Property, Plant and Equipment [Line Items]
Area of land owned (in acres) | a		121		121
Number of primary classifications | classification		2		2
Mineral Rights
Property, Plant and Equipment [Line Items]
Area of land owned (in acres) | a		90		90
Immaterial Error Correction
Property, Plant and Equipment [Line Items]
Increase in income tax expense							$ 1,494,000
Increase in long term deferred tax liability							$ 1,494,000
Reduction in additional paid in capital						$ 1,494,000

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Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Inventory [Line Items]
Total inventories	$ 46,421	$ 58,273
Unharvested fruit crop on the trees
Inventory [Line Items]
Unharvested fruit crop on the trees and Beef cattle	38,431	52,497
Beef cattle
Inventory [Line Items]
Unharvested fruit crop on the trees and Beef cattle	2,279	1,612
Citrus tree nursery
Inventory [Line Items]
Citrus tree nursery and Other	3,107	2,854
Other
Inventory [Line Items]
Citrus tree nursery and Other	$ 2,604	$ 1,310

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Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Net property and equipment	$ 379,100	$ 381,099
Citrus trees
Property, Plant and Equipment [Line Items]
Property and equipment, gross	249,188	247,488
Equipment and other facilities
Property, Plant and Equipment [Line Items]
Property and equipment, gross	58,454	56,200
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	21,391	21,259
Breeding herd
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,546	11,924
Depreciable properties
Property, Plant and Equipment [Line Items]
Property and equipment, gross	341,579	336,871
Less accumulated depreciation and depletion	(77,672)	(70,200)
Net property and equipment	263,907	266,671
Land and land improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 115,193	$ 114,428

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Acquisition and Dispositions - Acquisition of Orange-Co (Details)				6 Months Ended		12 Months Ended
	Dec. 01, 2015 USD ($)	Dec. 02, 2014 USD ($) a	Dec. 01, 2014 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)
Business Acquisition [Line Items]
Additional consideration				$ 0	$ 264,586,000
Citree
Business Acquisition [Line Items]
Ownership interest (as a percent)		51.00%
Orange-Co
Business Acquisition [Line Items]
Area of land acquired (in acres) | a		20,263
Cost of total assets acquired		$ 277,792,000
Cash acquired		2,060,000
Fair value attributable to noncontrolling interest		4,838,000
Initial cash consideration		147,500,000
Additional cash consideration (up to)		7,500,000
Term loan debt		500,000
Other liabilities		4,705,000
Standby letter of credit issued			$ 7,500,000
Additional consideration	$ 3,750,000	97,126,000
Fair value of total assets acquired						$ 1,000,000
Orange-Co | General and Administrative Expense
Business Acquisition [Line Items]
Professional and legal costs					$ 3,037,000
Orange-Co | Refinancing Debt
Business Acquisition [Line Items]
Term loan debt		92,290,000
Working capital facility		$ 27,857,000

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Acquisition and Dispositions - Summary of Final Allocation of Acquisition Cost to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands			6 Months Ended
	Dec. 01, 2015	Dec. 02, 2014	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Assets:
Goodwill			$ 2,246		$ 2,246
Liabilities:
Cash proceeds from sugarcane disposition			$ 0	$ 264,586
Orange-Co
Assets:
Accounts receivable		$ 888
Other current assets		845
Inventories		35,562
Goodwill		2,246
Other assets		2,140
Total assets, net of cash acquired		282,630
Liabilities:
Accounts payable and accrued liabilities		4,205
Debt		500
Contingent consideration		7,500
Total liabilities assumed		12,205
Assets acquired less liabilities assumed		270,425
Less: fair value attributable to noncontrolling interest		(4,838)
Total purchase consideration		265,587
Cash proceeds from sugarcane disposition	$ 3,750	97,126
Total purchase consideration		265,587
Orange-Co | Term loans
Liabilities:
Working capital line of credit and Term loans		140,604
Orange-Co | Working capital line of credit
Liabilities:
Working capital line of credit and Term loans		27,857
Orange-Co | Citrus Trees
Assets:
Property and equipment		164,123
Orange-Co | Land
Assets:
Property and equipment		63,395
Orange-Co | Equipment and other facilities
Assets:
Property and equipment		$ 13,431

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Acquisition and Dispositions - Sugarcane Land (Details) $ in Thousands			3 Months Ended		6 Months Ended
	May. 01, 2015 USD ($)	Nov. 21, 2014 USD ($) a	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)
Business Acquisition [Line Items]
Deferred gain			$ 28,432		$ 28,432		$ 29,122
Net gain on sale			760	$ (27)	902	$ 13,471
Property Subject to Operating Lease
Business Acquisition [Line Items]
Payments for sales contract	$ 1,347
Interest expense recognized			332		696
Deferred gain recognized			760		902
Property Subject to Operating Lease | Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Portion of payment included in prepaid expenses and other current assets			$ 463		$ 463
Global
Business Acquisition [Line Items]
Area of land used (in acres) | a		36,000
Cash received from sale of land		$ 97,900
Net cash proceeds		97,126
Post-closing adjustment period					10 years
Gain on sale		42,753
Deferred gain		$ 29,140
Global | Other Income (Expense)
Business Acquisition [Line Items]
Net gain on sale						$ 13,613
Global | Property Subject to Operating Lease
Business Acquisition [Line Items]
Area of land used (in acres) | a		30,600

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Common Control Acquisition - Narrative (Details)	6 Months Ended
	Mar. 31, 2016 a county
Florida
Business Acquisition [Line Items]
Number of Florida counties | county	7
Silver Nip Citrus
Business Acquisition [Line Items]
Area of land owned (in acres) | a	7,400

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Common Control Acquisition - Schedule of Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Operating revenue	$ 71,889	$ 60,012	$ 92,493	$ 79,082
Gross profit	19,515	11,676	20,881	14,948
Loss from operations	16,666	8,177	14,107	5,966
Net income	$ 8,724	$ 4,226	$ 5,704	$ 9,433
Earnings per common share:
Basic (in dollars per share)	$ 1.05	$ 0.51	$ 0.69	$ 1.21
Diluted (in dollars per share)	$ 1.05	$ 0.51	$ 0.69	$ 1.21
Alico
Business Acquisition [Line Items]
Operating revenue		$ 52,210		$ 68,368
Gross profit		9,951		13,095
Loss from operations		6,623		4,339
Net income		$ 3,363		$ 9,139
Earnings per common share:
Basic (in dollars per share)		$ 0.41		$ 1.17
Diluted (in dollars per share)		$ 0.41		$ 1.17
Silver Nip Citrus
Business Acquisition [Line Items]
Operating revenue		$ 7,802		$ 10,714
Gross profit		1,725		1,853
Loss from operations		1,554		1,627
Net income		$ 863		$ 294
Earnings per common share:
Basic (in dollars per share)		$ 0.10		$ 0.04
Diluted (in dollars per share)		$ 0.10		$ 0.04

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Long-Term Debt and Lines of Credit - Schedule of Long-term Debt, Net of Current Portion (Details) - USD ($)	Apr. 27, 2016	Mar. 31, 2016	Sep. 30, 2015	Dec. 03, 2014
Debt Instrument [Line Items]
Long-term debt, net of current portion		$ 200,100,000	$ 205,481,000
Less current portion		4,511,000	4,511,000
Long-term debt		195,589,000	200,970,000
Metropolitan Life Insurance Company and New England Life Insurance Company fixed rate term loans in the original principal amount of $125,000,000: the loans bear interest at the rate of 4.15% per annum. The loans are collateralized by real estate and mature in November 2029.
Debt Instrument [Line Items]
Long-term debt, net of current portion		108,438,000	111,563,000	$ 125,000,000
Principal amount		$ 125,000,000
Fixed interest rate		4.15%		4.15%
Metropolitan Life Insurance Company and New England Life Insurance Company variable rate term loans in the original principal amounts of $57,500,000: the variable interest rate was approximately 2.12% per annum as of March 31, 2016. The loans are collateralized by real estate and mature in November 2029.
Debt Instrument [Line Items]
Long-term debt, net of current portion		$ 53,906,000	55,344,000	$ 57,500,000
Principal amount		$ 57,500,000
Variable interest rate		2.12%
Metropolitan Life Insurance Company term loan: the loan bears interest at the rate of 5.30% per annum as of March 31, 2016. A final advance of $2,500,000 was made on April 27, 2016. The interest rate was adjusted to 5.28% on the date of the final advance. The loan is collateralized by real estate and matures in February 2029.
Debt Instrument [Line Items]
Long-term debt, net of current portion		$ 2,500,000	2,500,000
Fixed interest rate		5.30%
Metropolitan Life Insurance Company term loan: the loan bears interest at the rate of 5.30% per annum as of March 31, 2016. A final advance of $2,500,000 was made on April 27, 2016. The interest rate was adjusted to 5.28% on the date of the final advance. The loan is collateralized by real estate and matures in February 2029. | Subsequent Event
Debt Instrument [Line Items]
Final advance	$ 2,500,000
Fixed interest rate	5.28%
Prudential Mortgage Capital Company, LLC fixed rate term loans: the loans bear interest at the rate of 5.35% per annum. The loans are collateralized by real estate and mature in June 2033.
Debt Instrument [Line Items]
Long-term debt, net of current portion		$ 24,770,000	25,350,000
Fixed interest rate		5.35%
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.85% per annum. The loan is collateralized by real estate and matures in September 2021.
Debt Instrument [Line Items]
Long-term debt, net of current portion		$ 5,225,000	5,335,000
Fixed interest rate		3.85%
Prudential Mortgage Capital Company, LLC fixed rate term loan: the loan bears interest at the rate of 3.45% per annum as of March 31, 2016. The loan is collateralized by real estate and matures in September 2039.
Debt Instrument [Line Items]
Long-term debt, net of current portion		$ 5,225,000	5,335,000
Fixed interest rate		3.45%
Note payable to a financing company collateralized by equipment and maturing in December 2016.
Debt Instrument [Line Items]
Long-term debt, net of current portion		$ 36,000	$ 54,000

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Long-Term Debt and Lines of Credit - Schedule of Lines of Credit (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015	Dec. 03, 2014
Line of Credit Facility [Line Items]
Lines of Credit	$ 5,000,000	$ 0
Metropolitan Life Insurance Company and New England Life Insurance Company revolving line of credit: this $25,000,000 line bears interest at a variable rate which was 2.12% per annum as of March 31, 2016. The line is collateralized by real estate and matures in November 2019. Availability under the line was $20,000,000 as of March 31, 2016.
Line of Credit Facility [Line Items]
Lines of Credit	5,000,000	0
Revolving line of credit	25,000,000		$ 25,000,000
Availability under line of credit	$ 20,000,000
Interest rate	2.12%
Rabo Agrifinance, Inc. working capital line of credit: this $70,000,000 line bears interest at a variable rate which was 2.19% per annum as of March 31, 2016. The line is collateralized by current assets and certain personal property and matures in November 2016. Availability under the line was approximately $56,000,000 as of March 31, 2016.
Line of Credit Facility [Line Items]
Lines of Credit	$ 0	$ 0
Revolving line of credit	70,000,000		$ 70,000,000
Availability under line of credit	$ 56,000,000
Interest rate	2.19%

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Long-Term Debt and Lines of Credit - Schedule of Future Maturities of Debt and Lines of Credit (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Debt Disclosure [Abstract]
Due within one year	$ 4,511
Due between one and two years	8,250
Due between two and three years	10,825
Due between three and four years	15,925
Due between four and five years	10,975
Due beyond five years	154,614
Total future maturities	$ 205,100

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Long-Term Debt and Lines of Credit - Debt Refinancing (Details)					3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 27, 2016 USD ($)	Sep. 17, 2015 USD ($)	Dec. 03, 2014 USD ($) a	Mar. 04, 2014 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Debt Instrument [Line Items]
Interest rate term loans					$ 200,100,000		$ 200,100,000			$ 205,481,000
Outstanding balance					5,000,000		5,000,000			0
Capitalized amount of debt financing costs			$ 2,834,000
Deferred financing costs					2,178,000		2,178,000
Loss on extinguishment of debt					0	$ 17,000	0	$ 964,000
Minimum debt service coverage ratio			1.10
Tangible net worth			$ 160,000,000
Percentage of consolidated net income			10.00%
Minimum current ratio			1.50
Debt to total assets ratio			0.625
Limit on capital expenditures			$ 30,000,000
Advances							50,132,000	63,528,000
Scenario, Forecast
Debt Instrument [Line Items]
Annual increase of tangible net worth									$ 161,600,000
Other Income (Expense)
Debt Instrument [Line Items]
Loss on extinguishment of debt								$ 964,000
Citrus Groves
Debt Instrument [Line Items]
Area of land (in acres) | a			39,300
Farm and Ranch Land
Debt Instrument [Line Items]
Area of land (in acres) | a			14,000
RLOC
Debt Instrument [Line Items]
Revolving line of credit			$ 25,000,000		25,000,000		25,000,000
Availability under line of credit					20,000,000		20,000,000
Outstanding balance					5,000,000		5,000,000			0
RLOC | 90 Day LIBOR
Debt Instrument [Line Items]
LIBOR spread			1.50%
RLOC | LIBOR
Debt Instrument [Line Items]
Annual commitment fee (as a percent)			0.25%
WCLC
Debt Instrument [Line Items]
Revolving line of credit			$ 70,000,000		$ 70,000,000		$ 70,000,000
Variable interest rate					2.19%		2.19%
Availability under line of credit					$ 56,000,000		$ 56,000,000
Outstanding letters of credit					13,984,000		13,984,000
Outstanding balance					0		$ 0			0
WCLC | Letter of Credit
Debt Instrument [Line Items]
Revolving line of credit			$ 20,000,000
WCLC | One Month LIBOR
Debt Instrument [Line Items]
LIBOR spread							1.75%
WCLC | One Month LIBOR | Minimum
Debt Instrument [Line Items]
LIBOR spread			1.75%
Annual commitment fee (as a percent)			0.20%
WCLC | One Month LIBOR | Maximum
Debt Instrument [Line Items]
LIBOR spread			2.50%
Annual commitment fee (as a percent)			0.30%
Terminated RLOC
Debt Instrument [Line Items]
Deferred financing costs					339,000		$ 339,000
Metlife Term Loan | Citree
Debt Instrument [Line Items]
Revolving line of credit				$ 5,000,000
Deferred financing costs					55,000		55,000
Interest rate		5.30%		5.49%
Advances		$ 2,000,000		$ 500,000
Metlife Term Loan | Citree | Subsequent Event
Debt Instrument [Line Items]
Interest rate	5.28%
Advances	$ 2,500,000
Fixed Interest Rate Term Loans
Debt Instrument [Line Items]
Interest rate term loans			$ 125,000,000		$ 108,438,000		$ 108,438,000			111,563,000
Quarterly principal payments			$ 2,281,250
Fixed interest rate			4.15%		4.15%		4.15%
Prepayment amount of the fixed term loan			$ 8,750,000
Variable Interest Rate Term Loans
Debt Instrument [Line Items]
Interest rate term loans			$ 57,500,000		$ 53,906,000		$ 53,906,000			$ 55,344,000
LIBOR spread subject to adjustment period			2 years
Variable interest rate					2.12%		2.12%
Variable Interest Rate Term Loans | 90 Day LIBOR
Debt Instrument [Line Items]
LIBOR spread			1.50%

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Long-Term Debt and Lines of Credit - Silver Nip Citrus Debt (Details)			6 Months Ended
	Dec. 03, 2014 USD ($)	Sep. 04, 2014 USD ($) a loan	Mar. 31, 2016 USD ($) a loan	Sep. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Feb. 15, 2015 USD ($)
Debt Instrument [Line Items]
Interest rate term loans			$ 200,100,000	$ 205,481,000
Deferred financing costs			2,178,000
Minimum current ratio	1.50
Rabo Agrifinance, Inc. variable rate term loan. The loan was refinanced on December 3, 2014.
Debt Instrument [Line Items]
Deferred financing costs			339,000
Fixed Interest Rate Term Loans
Debt Instrument [Line Items]
Interest rate term loans	$ 125,000,000		$ 108,438,000	$ 111,563,000
Fixed interest rate	4.15%		4.15%
Quarterly principal payments	$ 2,281,250
Prepayment amount of the fixed term loan	$ 8,750,000
Silver Nip Citrus
Debt Instrument [Line Items]
Number of fixed rate term loans | loan		2
Area of land acquired (in acres) | a			7,400
Minimum current ratio			1.5
Silver Nip Citrus | Rabo Agrifinance, Inc. variable rate term loan. The loan was refinanced on December 3, 2014.
Debt Instrument [Line Items]
Revolving line of credit					$ 6,000,000
Silver Nip Citrus | Citrus Grove
Debt Instrument [Line Items]
Area of land acquired (in acres) | a		1,500
Silver Nip Citrus | Fixed Interest Rate Term Loans
Debt Instrument [Line Items]
Number of fixed rate term loans | loan			2
Interest rate term loans			$ 27,550,000
Fixed interest rate			5.35%
Quarterly principal payments			$ 290,000
Prepayment amount of the fixed term loan			5,000,000
Amount of prepayment						$ 750,000
Silver Nip Citrus | Fixed Interest Rate Term Loans | Prudential
Debt Instrument [Line Items]
Interest rate term loans		$ 5,500,000
Quarterly principal payments		$ 55,000
Silver Nip Citrus | Fixed Rate Term Loan1
Debt Instrument [Line Items]
Fixed interest rate		3.85%
Silver Nip Citrus | Fixed Rate Term Loan2
Debt Instrument [Line Items]
Fixed interest rate		3.45%
Silver Nip Citrus | Silver Nip Citrus Debt
Debt Instrument [Line Items]
Deferred financing costs			$ 365,000

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Long-Term Debt and Lines of Credit - Modification of Credit Agreements (Details) - USD ($)	Mar. 31, 2016	Sep. 30, 2015	Mar. 31, 2015
Debt Instrument [Line Items]
Interest rate term loans (up to)	$ 200,100,000	$ 205,481,000
Silver Nip Citrus | Loans Payable
Debt Instrument [Line Items]
Interest rate term loans (up to)			$ 7,000,000
Limited guaranty and security agreement			$ 7,000,000

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Long-Term Debt and Lines of Credit - Schedule of Interest Costs Expensed and Capitalized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Debt Disclosure [Abstract]
Interest expense	$ 2,475	$ 2,257	$ 4,978	$ 3,636
Interest capitalized	38	159	81	212
Total	$ 2,513	$ 2,416	$ 5,059	$ 3,848

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income attributable to Alico, Inc. common stockholders	$ 8,734	$ 4,226	$ 5,722	$ 9,433
Weighted average number of common shares outstanding - basic	8,286	8,272	8,294	7,815
Dilutive effect of equity awards	17	0	15	0
Weighted average number of common shares outstanding - diluted	8,303	8,272	8,309	7,815
Net income per common shares attributable to Alico, Inc. common stockholders:
Basic (in dollars per share)	$ 1.05	$ 0.51	$ 0.69	$ 1.21
Diluted (in dollars per share)	$ 1.05	$ 0.51	$ 0.69	$ 1.21

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Segment Information - Narrative (Details)		6 Months Ended	12 Months Ended
	Oct. 01, 2015 segment	Mar. 31, 2016 classification segment	Sep. 30, 2015 segment
Segment Reporting [Abstract]
Number of operating segments | segment	3	3	5
Land
Property, Plant and Equipment [Line Items]
Number of primary classifications | classification		2

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Segment Information - Schedule of Information by Business Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Revenues:
Total revenues	$ 71,889	$ 60,012	$ 92,493	$ 79,082
Operating expenses:
Total operating expenses	52,374	48,336	71,612	64,134
Gross profit:
Total gross profit	19,515	11,676	20,881	14,948
Depreciation, depletion and amortization:
Total depreciation, depletion and amortization	4,036	3,505	8,044	6,489
Assets:
Total Assets	463,852		463,852		$ 460,088
Operating Segments
Revenues:
Total revenues	71,889	60,012	92,493	79,082
Operating expenses:
Total operating expenses	52,374	48,336	71,612	64,134
Gross profit:
Total gross profit	19,515	11,676	20,881	14,948
Other Depreciation, Depletion and Amortization
Depreciation, depletion and amortization:
Total depreciation, depletion and amortization	254	(159)	567	508
Other Corporate Assets
Assets:
Total Assets	10,008		10,008		22,512
Orange Co. | Operating Segments
Revenues:
Total revenues	70,982	58,557	90,277	75,550
Operating expenses:
Total operating expenses	51,716	46,383	69,324	60,597
Gross profit:
Total gross profit	19,266	12,174	20,953	14,953
Depreciation, depletion and amortization:
Total depreciation, depletion and amortization	3,391	3,152	6,748	5,098
Assets:
Total Assets	418,191		418,191		392,329
Conservation and Environmental Resources | Operating Segments
Revenues:
Total revenues	644	309	1,651	1,145
Operating expenses:
Total operating expenses	581	623	2,141	1,368
Gross profit:
Total gross profit	63	(314)	(490)	(223)
Depreciation, depletion and amortization:
Total depreciation, depletion and amortization	297	242	529	485
Assets:
Total Assets	14,418		14,418		13,779
Other Operations | Operating Segments
Revenues:
Total revenues	263	1,146	565	2,387
Operating expenses:
Total operating expenses	77	1,330	147	2,169
Gross profit:
Total gross profit	186	(184)	418	218
Depreciation, depletion and amortization:
Total depreciation, depletion and amortization	94	$ 270	200	$ 398
Assets:
Total Assets	$ 21,235		$ 21,235		$ 31,468

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Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Class of Stock [Line Items]
Shares of common stock authorized to be repurchased (up to)	50,000		50,000		170,000
Available to purchase shares	50,000		50,000
Corporate, General and Administrative Expense
Class of Stock [Line Items]
Stock-based compensation expense	$ 251	$ 254	$ 496	$ 509

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Stockholders' Equity - Schedule of Treasury Stock Purchases and Issuance (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2016 USD ($) shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares) | shares	90,565
Beginning Balance | $	$ 3,962
Ending Balance (in shares) | shares	114,082
Ending Balance | $	$ 5,151
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares) | shares	90,565
Beginning Balance | $	$ 3,962
Purchased (in shares) | shares	78,446
Purchased | $	$ 3,141
Ending Balance (in shares) | shares	114,082
Ending Balance | $	$ 5,151
Treasury Stock | Director
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued | shares	(22,006)
Cost of shares issued | $	$ (469)
Treasury Stock | Former Silver Nip Citrus Equity Holders
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued | shares	(32,923)
Cost of shares issued | $	$ (1,483)

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Commitments and Contingencies (Details)	May. 06, 2015 defendant	Mar. 31, 2016 USD ($)	Sep. 30, 2015 USD ($)
Director | Unjust Enrichment Claims
Loss Contingencies [Line Items]
Number of directors | defendant	3
Financial Standby Letter of Credit
Loss Contingencies [Line Items]
Outstanding standby letters of credit | $		$ 13,984,000	$ 17,498,500

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Related Party Transactions - Silver Nip Citrus Merger Agreement (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Feb. 28, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015	Feb. 27, 2015
Related Party Transaction [Line Items]
Ownership interest (as a percent)		51.00%	51.00%
Common stock, par value per share (in dollars per share)	$ 1.00	$ 1		$ 1.00
Closing price of common stock (in dollars per share)					$ 45.67
Merger Agreement
Related Party Transaction [Line Items]
Shares of common stock issued (in shares)	923,257	148,705
Outstanding net indebtedness	$ 40,278
Other liabilities	6,952
Book value of assets	65,739
Total net assets	$ 18,470
Silver Nip Citrus | General and Administrative Expense
Related Party Transaction [Line Items]
Professional and legal costs			$ 811
734 Agriculture | Silver Nip Citrus
Related Party Transaction [Line Items]
Ownership interest (as a percent)	74.89%
Mr. Clay Wilson | Silver Nip Citrus
Related Party Transaction [Line Items]
Ownership interest (as a percent)	5.00%
Entity Controlled by Mr. Clay Wilson | Silver Nip Citrus
Related Party Transaction [Line Items]
Ownership interest (as a percent)	20.11%

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Related Party Transactions - JD Alexander (Details) - JD Alexander		3 Months Ended		6 Months Ended
	Nov. 06, 2013 USD ($) installment	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Related Party Transaction [Line Items]
Consulting services and covenant period	2 years
Payments for services and covenants	$ 2,000,000
Number of monthly installments | installment	24
Expense under consulting and non-compete agreement		$ 0	$ 250,000	$ 167,000	$ 500,000

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Related Party Transactions - Ken Smith (Details) - Ken Smith - USD ($)		3 Months Ended		6 Months Ended
	Mar. 20, 2015	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Related Party Transaction [Line Items]
Payments for services and covenants (up to)	$ 1,225,000
Expense under consulting and non-compete agreement		$ 50,000	$ 0	$ 100,000	$ 0
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

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Related Party Transactions - W. Mark Humphrey (Details) - W. Mark Humphrey - USD ($)		3 Months Ended	6 Months Ended
	Jun. 01, 2015	Mar. 31, 2016	Mar. 31, 2016
Related Party Transaction [Line Items]
Consulting services and covenant period	1 year
Cash in a lump sum	$ 100,000
Payments for services and covenants	$ 350,000
Expense under separation and consulting agreement		$ 92,000	$ 180,000

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Related Party Transactions - Shared Services Agreement (Details) - TBCO - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Related Party Transaction [Line Items]
Payments for services and covenants			$ 400
Expense under shared services agreement	$ 99	$ 0	$ 198	$ 0

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Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Payables and Accruals [Abstract]
Ad valorem taxes	$ 1,020	$ 2,640
Accrued interest	1,218	1,155
Accrued employee wages and benefits	240	427
Inventory received but not invoiced	2,909	581
Accrued dividends	498	501
Current portion of deferred retirement obligations	342	342
Additional purchase price consideration	3,750	7,500
Other accrued liabilities	840	669
Total accrued liabilities	$ 10,817	$ 13,815