UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1998
Commission file Number 0-24240
RIDGEWOOD ELECTRIC POWER TRUST I
(Exact name of registrant as specified in its charter.)
Delaware, U.S.A. 22-3105824
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
947 Linwood Avenue, Ridgewood, New Jersey 07450-2939
(Address of principal executive offices (Zip Code)
Registrant's telephone number, including area code:
(201) 447-9000
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
RIDGEWOOD ELECTRIC POWER TRUST I
BALANCE SHEETS
(Unaudited)
June 30, December 31,
1998 1997
Assets:
Investments in power generation projects $ 6,397,522 $ 6,102,658
Cash and cash equivalents 759,002 1,042,568
Due from affiliates 7,599 ---
Other assets 30,777 109,932
Total assets $ 7,194,900 $ 7,255,158
Liabilities and Shareholders' Equity:
Accounts payable and accrued expenses $ 56,577 $ 47,452
Due to affiliates 100,853 214,563
Total liabilities 157,430 262,015
Shareholders' equity
Shareholders' equity
(105.5 shares issued
and outstanding) 7,057,254 7,013,370
Managing shareholder's
accumulated deficit (19,784) (20,227)
Total shareholders' equity 7,037,470 6,993,143
Total liabilities and
shareholders' equity $ 7,194,900 $ 7,255,158
<FN>
See accompanying notes to financial statements.
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS AND QUARTERS ENDED JUNE 30, 1997
AND JUNE 30, 1996
(Unaudited)
Six Months Ended Quarter Ended
June 30,1998 June 30, 1997 June 30,1998 June 30,1997
Revenue:
Income from power
generating projects $ 744,209 $ 294,450 $ 396,390 $ 147,001
Interest income 30,607 60,342 9,165 29,264
Total revenue 774,276 354,792 405,555 176,265
Expenses:
Accounting and legal
fees 25,203 15,848 15,621 6,751
Management fee 37,248 31,793 18,624 7,209
Trustee fees 5,000 5,000 2,500 2,500
Miscellaneous 16,606 9,228 12,626 5,619
Total expenses 84,157 61,869 49,371 22,079
Net income $ 690,119 $ 292,923 $ 356,184 $ 154,186
<FN> See accompanying Notes to Financial Statements.
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE PERIOD ENDED JUNE 30, 1998
(unaudited)
Managing
Shareholders Shareholders Total
Shareholders' equity,
December 31, 1997 $7,013,370 $ (20,227) $ 6,993,143
Cash distributions (639,334) (6,458) (645,792)
Net income
for the period 683,218 6,901 690,119
Shareholders' equity
June 30, 1998 $7,057,254 $ (19,784) $ 7,037,470
<FN>
See Accompanying Notes to Financial Statements
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS AND QUARTERS ENDED JUNE 30, 1998
AND JUNE 30, 1997
(Unaudited)
Six Months Ended
June 30, 1998 June 30, 1997
Cash flows from operating
activities:
Net income $ 690,119 $ 292,923
Adjustments to
reconcile net income
to net cash flows from
operating activities:
Additional investment in
power generation projects --- (3,000,000)
Return of investment in
power generation project --- 3,259,152
Changes in assets and liabilities:
(Increase) decrease in
advances and due from
affiliates (302,463) 320,648
Decrease (increase) in
other assets 79,155 (4,940)
Increase (decrease) in
accounts payable and
accrued expenses 9,125 (28,245)
Decrease due to
Affiliates (113,710) (186,719)
Total adjustments (327,893) 359,896
Net cash provided by
operating facilities 326,226 652,819
Cash flows from financing activities:
Cash distributions to shareholders (645,792) (320,869)
Net Cash used
in financing activities (645,792) (320,869)
Net (decrease) increase in
cash and cash equivalents (238,566) 331,950
Cash and cash equivalents
beginning of period $1,042,568 327,322
Cash and cash equivalents
end of period $ 759,002 $ 659,272
<FN>
See Accompanying Notes to Financial Statements
RIDGEWOOD ELECTRIC POWER TRUST I
Note to Financial Statements
1. General
In the opinion of management, the accompanying unaudited 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 policies and other
matters are disclosed in Ridgewood Electric Power Trust I's financial
statements included in the 1997 Annual Report on Form 10-K, which should be
read in conjunction with these 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.
ITEM II - MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Quarterly Report on Form 10-Q, like some other statements made by the
Trust from time to time, has forward-looking statements. These statements
discuss business trends and other matters relating to the Trust's future
results and the business climate. 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 forward-looking 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 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.
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.
Dollar amounts in this discussion are generally rounded to
the nearest $1,000.
Introduction
The Trust carries its investment in the Projects it owns at
fair value and does not consolidate its financial
statements with the financial statements of the Projects.
Revenue is recorded by the Trust as cash distributions are
received from the Projects. Trust revenues may fluctuate
from period to period depending on the operating cash flow
generated by the Projects and the amount of cash retained
to fund capital expenditures.
Results of Operations
Revenues Six Months Ended June 30, Quarter Ended June 30,
1998 1997 1998 1997
Olinda $ 744,000 $ 163,000 $397,000 $147,000
South Boston --- 132,000 --- ---
Interest income 30,000 60,000 9,000 29,000
Total $ 774,000 $ 355,000 $406,000 $176,000
Total revenue increased 118% to $774,000 in the first six
months of 1998 from $355,000 in the first six months of
1997, primarily due to a $581,000 increase in income from
the Olinda Project, partially offset by a decrease of
$132,000 from the South Boston Project (which was closed in
January 1997 and sold in late 1997). In the second quarter
of 1998, total revenue increased 131% to $406,000 from
$176,000 in the second quarter of 1997 due to a $250,000
increase in income from the Olinda project. The increase
in revenue from the first six months of 1997 to the
comparable 1998 period was primarily the result of the
Trust's purchase on July 1, 1997 of the subordinated equity
interest in the Project owned by the Project's former
operator and the termination of the management agreement
with that operator.
Expenses
Total expenses of $84,000 in the first six months of 1998
increased by $22,000 from the $62,000 incurred in the same
period in 1997. The increase reflected timing differences
in recording of fees and expenses and minor changes in
accounting estimates. The $27,000 increase in Trust
expenses from the second quarter of 1997 to the second
quarter of 1998 was caused by the same factors.
Liquidity and Capital Resources
During the first six months of 1998, the Trust's net income
rose to $690,000 as compared to $293,000 for the same
period in 1997. The Trust had accumulated a significant
amount of cash ($1,043,000) at December 31, 1997 and
decided to apply approximately $300,000 of that cash for
working capital uses at the Olinda Project. As a result
cash flow from operating activities for the first six
months of 1998 was $362,000 as compared to $653,000 during
the same period in 1997. The Trust was nevertheless able
to increase its cash distributions to shareholders to
$646,000 in the first six months of 1998 from $321,000 in
the same period in 1997 because of the favorable operating
results from the Olinda Project and the accumulated cash.
The Trust anticipates that operating cash flow from the
Olinda Project will be adequate to fund distributions at
the current rate for at least the remainder of 1998.
In 1997, the subsidiary owning the Olinda Project entered
into a revolving credit agreement with Fleet Bank, N.A.
(the "Bank") whereby the Bank provided a five year
committed line of credit facility of $750,000 which
decreases by $100,000 on each anniversary of the facility.
Outstanding borrowings bear interest at the Bank's prime
rate or, at the borrower's choice, at LIBOR plus 2.5%. The
credit agreement requires the Olinda Project to maintain a
ratio of total debt to tangible net worth of no more than 1
to 1. The Trust guaranteed the obligations under the
credit facility. There were no borrowings outstanding
under this line of credit facility in 1998.
PART II - OTHER INFORMATION
Item #6 Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit 27. Financial Data Schedule
RIDGEWOOD ELECTRIC POWER TRUST I
SIGNATURES
Pursuant to the requirement of the Securities Exchange
Act of 1934, the registrant has duly cause this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
RIDGEWOOD ELECTRIC POWER TRUST I
Registrant
August 14, 1998 by /s/ Martin V. Quinn
Date Martin V. Quinn
Senior Vice President and
Chief Financial Officer
(signing on behalf of the
Registrant and as
principal financial
officer)