FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended March 31,2002
Commission file Number 0-24240
RIDGEWOOD ELECTRIC POWER TRUST I
(Exact name of registrant as specified in its charter.)
Delaware 22-3105824
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
947 Linwood Avenue, Ridgewood, New Jersey 07450-2939
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(Address of principal executive offices) (Zip Code)
(201) 447-9000
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Registrant's telephone number, including area code:
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 [ ]
PART I. - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Ridgewood Electric Power Trust I
Consolidated Financial Statements
March 31, 2002
Ridgewood Electric Power Trust I
Consolidated Balance Sheets (unaudited)
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March 31, December 31,
2002 2001
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Assets:
Cash and cash equivalents ........................ $ 2,730,972 $ 2,848,041
Trade receivables ................................ 317,867 228,958
Due from affiliates .............................. 105,256 1,698
Other current assets ............................. 10,837 17,197
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Total current assets ...................... 3,164,932 3,095,894
Investment in Stillwater Hydro Partners, L.P. .... 573,742 562,319
Plant and equipment .............................. 5,888,251 5,869,018
Accumulated depreciation ......................... (1,005,340) (946,721)
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4,882,911 4,922,297
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Electric power sales contract .................... 2,207,778 2,207,778
Accumulated amortization ......................... (1,498,138) (1,419,289)
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709,640 788,489
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Total assets ............................. $ 9,331,225 $ 9,368,999
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Liabilities and Shareholders' Equity:
Liabilities:
Accounts payable and accrued expenses ............ $ 206,145 $ 114,707
Current maturities of long-term debt ............. 214,951 252,272
Due to affiliates ................................ 1,810 1,117
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Total current liabilities ................ 422,906 368,096
Long-term debt, less current portion ............. 1,203,958 1,227,674
Commitments and contingencies .................... -- --
Shareholders' Equity:
Shareholders' equity (105.5 investor
shares issued and outstanding)
7,717,477 7,785,656
Managing shareholder's accumulated deficit
(1 management share issued and outstanding) ..... (13,116) (12,427)
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Total shareholders' equity ............... 7,704,361 7,773,229
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Total liabilities and shareholders' equity $ 9,331,225 $ 9,368,999
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See accompanying notes to the consolidated financial statements.
Ridgewood Electric Power Trust I
Consolidated Statements of Operations (unaudited)
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For the Three Months Ended
--------------------------
March 31, March 31,
2002 2001
Restated
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Power generation revenue ................... $ 518,462 $ 998,605
Rental revenue ............................. 21,000 75,865
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Total revenue ........................... 539,462 1,074,470
Cost of sales, including depreciation and
amortization of $137,468 and $138,204 in
2002 and 2001 ............................ 547,938 544,103
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Gross profit (loss) ......................... (8,476) 530,367
General and administrative expenses ......... 15,439 509,847
Management fee paid to managing shareholder
19,433 25,693
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Total other operating expenses ......... 34,872 535,540
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Income (loss) from operations ............... (43,348) (5,173)
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Other income (expense):
Interest income .......................... 23,353 27,837
Interest expense ......................... (31,682) --
Other expense ............................ (28,614) (11,605)
Equity (loss) income from Stillwater Hydro
Partners, L.P. ........................ 11,423 (799)
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Other income (expense), net ............ (25,520) 15,433
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Net income (loss) ........................... $ (68,868) $ 10,260
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See accompanying notes to the consolidated financial statements.
Ridgewood Electric Power Trust I
Consolidated Statement of Changes in Shareholders' Equity (unaudited)
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Managing
Shareholders Shareholder Total
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Shareholders' equity,
December 31, 2001 .... $ 7,785,656 $ (12,427) $ 7,773,229
Net loss for the period (68,179) (689) (68,868)
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Shareholders' equity,
March 31, 2002 ...... $ 7,717,477 $ (13,116) $ 7,704,361
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See accompanying notes to the consolidated financial statements.
Ridgewood Electric Power Trust I
Consolidated Statements of Cash Flows(unaudited)
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Three Months Ended
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March 31, March 31,
2002 2001
Restated
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Cash flows from operating activities:
Net income (loss) ........................... $ (68,868) $ 10,260
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Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization ............... 137,468 138,204
Equity in (earnings)/loss from unconsolidated
Stillwater Hydro Partners, L.P. ........... (11,423) 799
Changes in assets and liabilities:
Increase in trade receivables ............. (88,909) (506,833)
Decrease in other current assets .......... 6,360 10,487
Increase in accounts payable and accrued
expenses ................................. 91,438 103,204
(Decrease) increase in due to/from
affiliates,net ........................... (102,865) 56,095
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Total adjustments ....................... 32,069 (198,044)
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Net cash used in operating activities ... (36,799) (187,784)
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Cash flows from investing activities:
Capital expenditures ........................ (19,233) (190,923)
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Net cash used in investing activities ... (19,233) (190,923)
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Cash flows from financing activities:
Payments to reduce long-term debt ........... (61,037) --
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Net cash used in financing activities ... (61,037) --
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Net decrease in cash and cash equivalents ........ (117,069) (378,707)
Cash and cash equivalents, beginning of year ..... 2,848,041 1,712,745
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Cash and cash equivalents, end of period ......... $ 2,730,972 $ 1,334,038
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See accompanying notes to the consolidated financial statements.
Ridgewood Electric Power Trust I
Note to the Consolidated Financial Statements (unaudited)
1. General
In the opinion of management, the accompanying unaudited consolidated financial
statements contain all adjustments, which consist of normal recurring
adjustments, necessary for the fair representation of the results for the
interim periods. Additional footnote disclosure concerning accounting polices
and other matters are disclosed in Ridgewood Electric Power Trust I's
consolidated financial statements included in the 2001 Annual Report on Form
10-K, which should be read in conjunction with these consolidated financial
statements. Certain prior year amounts have been reclassified to conform to the
current year presentation.
The results of operations for an interim period should not necessarily be taken
as indicative of the results of operations that may be expected for a twelve
month period.
2. Summary Results of Operations for Selected Investments
Summary results of operations for the Stillwater Hydro Partners, L.P., which are
accounted for under the equity method, were as follows:
Three Months Ended
March 31,
2002 2001
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Revenue .......... $ 341,000 $ 352,000
Operating expenses 306,000 354,000
Net income (loss) 35,000 (2,000)
3. Accounting Changes
Effective on December 18, 2001, the shareholders of the Trust consented to end
its election to be treated as a Business Development Corporation ("BDC") under
the Investment Company Act of 1940. As a BDC under the 1940 Act, the Trust
utilized generally accepted accounting principles for investment companies. As a
result of the elimination of the BDC status, the Trust now utilizes generally
accepted accounting principles for operating companies. In accordance with the
generally accepted accounting principles for BDCs, investments in power
generation projects were stated at fair value in previously issued financial
statements. As a result of the elimination of the BDC status, consolidation and
equity method accounting principles now apply to the accounting for investments.
Accordingly, the financial data for all prior periods presented have been
restated to reflect the use of consolidation and equity method accounting
principles
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Dollar amounts in this discussion are rounded to the nearest $1,000.
Introduction
The consolidated financial statements include the accounts of the Trust and the
limited partnerships owning the Olinda Projects and the Mobile Power modules.
The Trust uses the equity method of accounting for its investment in the
Stillwater Hydro Project, which is owned 50% or less by the Trust.
Results of Operations
Total revenue decreased 49.8% to $539,000 in the first quarter of 2002 from
$1,074,000 in the first quarter of 2001, primarily due to the decrease in power
generation revenue from the Olinda Projects. Power generation revenue from the
Olinda Projects decreased by $481,000 in the first quarter of 2002. The decrease
in revenue from the Olinda Project is attributable to the higher energy prices
charged during the first quarter of 2001 as a result of the California energy
crisis.
Gross profit decreased from $530,000 in the first quarter of 2001, to a loss of
$8,000 in the first quarter of 2002. The decrease is a result of the higher
energy prices charged during the California energy crisis in 2001. The current
year loss of $8,000 is also due to the Olinda Projects operating under the
normal off-peak seasonal rates.
General and administrative expenses decreased by $494,000, to $15,000 in 2002 as
compared to $510,000 in 2001. The decrease is due to the loss recognized on the
sale of uncollected receivables in 2001 as a result of Southern California
Edison's failure to pay for the power it received in the first quarter of 2001.
The management fee for the first quarter of 2002 was consistent with the first
quarter of 2001.
Interest income for the first quarter was consistent with the first quarter of
the prior year. Interest expense increased to $32,000 from zero in the first
quarter of the prior year due to the new project financing on the expansion of
the Olinda Project.
Equity earnings in the Stillwater Hydro Project increased $12,000, from a $1,000
equity loss in the first quarter of 2001 to $11,000 of equity income in the
first quarter of 2002. The increase in earnings is due to the lower interest
expense the project incurred in the current year as a result of the lower
outstanding borrowing balance.
Liquidity and Capital Resources
Obligations of the Trust are generally limited to payment of the management fee
to the Managing Shareholder, scheduled long-term debt payments related to the
expansion on the Olinda Project and payment of certain accounting and legal
services to third parties. The Trust ceased making distributions to shareholders
in the first quarter of 2001, but resumed making distributions in April 2002.
The Trust expects that its cash flows from operations will be sufficient to fund
its obligations for the next twelve months.
Forward-looking statement advisory
This Quarterly Report on Form 10-Q, as with some other statements made by the
Trust from time to time, contains forward-looking statements. These statements
discuss business trends and other matters relating to the Trust's future results
and the business climate and are found, among other places, in the notes to
financial statements and at Part I, Item 2, Management's Discussion and
Analysis. In order to make these statements, the Trust has had to make
assumptions as to the future. It has also had to make estimates in some cases
about events that have already happened, and to rely on data that may be found
to be inaccurate at a later time. Because these forward-looking statements are
based on assumptions, estimates and changeable data, and because any attempt to
predict the future is subject to other errors, what happens to the Trust in the
future may be materially different from the Trust's statements here.
The Trust therefore warns readers of this document that they should not rely on
these forward-looking statements without considering all of the things that
could make them inaccurate. The Trust's other filings with the Securities and
Exchange Commission and its Confidential Memorandum discuss many (but not all)
of the risks and uncertainties that might affect these forward-looking
statements.
Some of these are changes in political and economic conditions, federal or state
regulatory structures, government taxation, spending and budgetary policies,
government mandates, demand for electricity and thermal energy, the ability of
customers to pay for energy received, supplies of fuel and prices of fuels,
operational status of plant, mechanical breakdowns, availability of labor and
the willingness of electric utilities to perform existing power purchase
agreements in good faith. Some of the cautionary factors that readers should
consider are described in the Trust's most recent Annual Report on Form 10-K.
By making these statements now, the Trust is not making any commitment to revise
these forward-looking statements to reflect events that happen after the date of
this document or to reflect unanticipated future events.
PART II - OTHER INFORMATION
None.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant as duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RIDGEWOOD ELECTRIC POWER TRUST I
Registrant
May 15, 2002 By /s/ Christopher I. Naunton
Date Christopher I. Naunton
Vice President and
Chief Financial Officer
(signing on behalf of the
Registrant and as
principal financial
officer)