SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 1995 Commission File Number 2-95219 -------------- ------- INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) Massachusetts 04-2859087 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization One International Place, Boston, MA 02110 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (617) 330-8600 ----------------- Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO The accompanying notes are an integral part of these financial statements. INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS MARCH 31, 1995 (UNAUDITED) 1. ACCOUNTING AND FINANCIAL REPORTING POLICIES The condensed financial statements included herein have been prepared by the Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Registrant's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is recommended that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Registrant's latest annual report on Form 10-K. The accompanying financial statements reflect the Partnership's results of operations for an interim period and are not necessarily indicative of the results of operations for the year ending December 31, 1995. 2. TAXABLE LOSS The Partnership's results of operations on a tax basis are expected to differ from net income for financial reporting purposes primarily due to the accounting differences generated by using accelerated depreciation methods and Uniform Capitalization Rules under I.R.C. Section 263A used for tax purposes. The accompanying notes are an integral part of these financial statements. INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP STATEMENT OF CHANGES IN PARTNERS' CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 1994 AND 1993 (UNAUDITED) (NOTE 1) Limited Partners General Units Capital Partner Total Balance, December 31, 1994 15,500 $2,256,415 $(1,027,737) $1,228,678 Net Loss (634,783) (70,531) (705,314) ------ ---------- ----------- ---------- Balance, March 31, 1995 15,500 $1,621,632 $(1,098,268) $ 523,364 ====== ========== =========== ========== Balance, December 31, 1993 15,500 $3,412,696 $(899,261) $2,513,435 Net Loss (259,033) (28,782) (287,815) ------ ---------- --------- ---------- Balance, March 31, 1994 15,500 $3,153,663 $(928,043) $2,225,620 ====== ========== ========= ========== The accompanying notes are an integral part of these financial statements. PART I - FINANCIAL INFORMATION INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP STATEMENT OF OPERATIONS (UNAUDITED) (NOTE 1) THREE MONTHS ENDED MARCH 31, -------------- 1995 1994 -------- ------ Fruit Sales........................................................... $ 714,549 $ 857,634 Less - Harvesting expenses................................... 226,070 136,404 ---------- ---------- Net Fruit Sales.......................................... 488,479 721,230 Cost of Fruit Sales.......................................... 398,460 242,726 ---------- ---------- Operating Margin......................................... 90,019 478,504 Other Revenues: Interest income.............................................. 22,396 15,613 Other Expenses: Interest expense............................................. 644,657 565,771 Grove management fees........................................ 51,483 60,586 Partnership management fees.................................. 75,000 75,000 Real estate taxes............................................ 14,700 33,488 Amortization................................................. 11,416 11,416 Building depreciation........................................ 2,368 2,368 General & Administrative..................................... 18,105 33,303 --------- --------- 817,729 781,932 --------- --------- Net Loss.............................................................. (705,314) $(287,815) ========= ========= Net Loss allocated to General Partner................................. (70,531) $ (28,782) ========= ========= Net Loss allocated to Limited Partners................................ (634,783) $(259,033) ========= ========= Net Loss per Unit of Limited Partnership Interest......................................... $ (40.95) $ (16.71) ========= ========= The accompanying notes are an integral part of these financial statements. INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP BALANCE SHEETS ASSETS (NOTE 1) March 31, December 31, 1995 1994 (Unaudited) (Audited) Current Assets: Cash and cash equivalents....................................... $ 1,840,000 $ 3,124,628 Accounts receivable............................................. 281,048 99,102 Inventory....................................................... 1,962,781 1,769,116 Other assets.................................................... 43,504 48,757 ----------- ----------- 4,127,333 5,041,603 Property, net......................................................... 18,907,046 19,064,407 Deferred financing costs.............................................. 38,940 50,356 ----------- ----------- $23,073,319 $24,156,366 =========== =========== LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Accrued interest................................................ $ 531,002 $ 1,186,622 Other liabilities............................................... 402,093 124,206 Notes payables 21,616,860 0 ----------- ------- 22,549,955 1,310,828 Long-term notes payable............................................... 21,616,860 21,616,860 Partners' Capital: Limited Partners, $1,000 stated value per Unit; 15,500 Units authorized, issued and outstanding.............................................. 1,621,632 2,256,415 General Partner................................................. (1,098,268) (1,027,737) ----------- ----------- $23,073,319 $24,156,366 =========== =========== The accompanying notes are an integral part of these financial statements. INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS (UNAUDITED) (NOTE 1) THREE MONTHS ENDED MARCH 31, -------------- 1995 1994 -------- ------ Cash Flows From Operating Activities: Cash paid to suppliers.......................................... (521,625) (1,142,352) Interest received............................................... 22,392 15,613 Interest paid................................................... (1,300,277) (525,510) ------------ ----------- Net cash used in operating activities................................................... (1,272,975) (766,615) ------------ ----------- Cash Flows From Investing Activities: Capital expenditures............................................ (11,653) 0 ------------ ----------- Net cash used in investing activities........................... (11,653) 0 ------------ ----------- Net Decrease in Cash and Cash Equivalents............................. (1,284,628) (766,615) ------------ ----------- Cash and Cash Equivalents at Beginning of Period....................................................... 3,124,628 2,475,681 ------------ ----------- Cash and Cash Equivalents at End of Period............................ $ 1,840,000 $ 1,709,066 =========== =========== The accompanying notes are an integral part of these financial statements. INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS (CONTINUED) (UNAUDITED) (NOTE 1) Reconciliation of net loss to net cash provided (used) by operating activities: THREE MONTHS ENDED MARCH 31, -------------- 1995 1994 -------- ------ Net Loss $ (705,314) $(287,815) Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: Depreciation and amortization.................................. 13,784 13,784 Decrease (Increase) in: Accounts Receivable......................................... (181,946) (249,559) Inventory................................................... (193,665) (491,348) Other Assets................................................ 5,253 (25,165) Increase (Decrease) in: Accrued Interest............................................ (655,620) 40,262 Other Liabilities........................................... 277,887 67,454 Depreciation capitalized to inventory.......................... 166,646 165,772 --------- ---------- Net Cash Provided (Used) by Operating Activities..................................................... $(1,272,975) $ (766,615) =========== =========== Disclosure of accounting policy: For purposes of the statement of cash flows, the partnership considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The accompanying notes are an integral part of these financial statements. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION Cash and equivalents of approximately $1,840,000 at March 31, 1995 are sufficient to meet the Partnerships' working capital and liquidity requirements. RESULTS OF OPERATIONS/VARIATIONS IN INTERIM PERIODS The principal differences between the results of operations for the first quarter of 1995 and that of 1994 are: 1) A significant increase in the portion of crop harvested during the quarter, coupled with a somewhat larger crop anticipated for the current year in comparison to the prior one. In the first quarter of 1994, the Registrant harvested approximately 57,000 boxes (10% of the approximately 547,000 boxes harvested for the 1993-1994 crop year). In the first quarter of 1995, the Registrant harvested approximately 120,000 boxes (16% of the 733,000 boxes estimated for the 1994-1995 crop year). 2) A slight decrease in the pounds-solid per box and a slight increase in the price received per pound solid were noted. During 1994 approximately $540,000 was recognized under participation agreements with fruit processors with respect to the previous crop year. To date, settlements for participation agreements have not been received for the 1993-1994 crop year. 3) Harvesting expenses increased significantly, based upon the increased volume of fruit sold, offset in part by a decrease in cost per box from $2.39 in 1994 to $1.85 in 1995. 4) Cost of fruit sales per box (which consist primarily of inventoried horticultural costs) decreased, primarily as a function of the large estimated corp for the 1994-1995 crop year. 5) Interest expense increased as a result of the increase in the prime rate. 6) Interest income increased due to the increase in cash and cash equivalents. 7) Mortgages payable are due January 31, 1996. It is the partnerships intention to refinance the debt at this time. The accompanying notes are an integral part of these financial statements. PART II - OTHER INFORMATION Items 1, 2, 3 and 4 are inapplicable. Item 5. Other Information. All items are inapplicable. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP (Registrant) By: Winthrop Agricultural Management, II, Inc. General Partners By: /s/ Jonathan W. Wexler Jonathan W. Wexler Chief Financial Officer, By: /s/ Richard J. McCready Richard J. McCready Vice President DATED: May 12, 1995