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 September 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)
September 30, December 31,
1998 1997
Investments in power generation projects $ 6,682,132 $ 6,102,658
Cash and cash equivalents 893,135 1,042,568
Other assets 46,525 109,932
Total assets $ 7,621,792 $ 7,255,158
Liabilities and Shareholders' Equity:
Accounts payable and accrued expenses $ 81,193 $ 47,452
Due to affiliates 380,851 214,563
Total liabilities 462,044 262,015
Shareholders' equity:
Shareholders' equity (105.5 shares
issued and outstanding) 7,178,309 7,013,370
Managing shareholder's accumulated deficit (18,561) (20,227)
Total shareholders' equity 7,159,748 6,993,143
Total liabilities and
shareholders' equity $ 7,621,792 $ 7,255,158
<FN>
See accompanying notes to financial statements.
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS AND QUARTERS ENDED SEPTEMBER 30, 1998
AND SEPTEMBER 30, 1997
(Unaudited)
Nine Months Ended Quarter Ended
Revenue: September 30, September 30 September 30, September 30,
1998 1997 1998 1997
Income from power
generation projects $ 1,228,555 $ 1,453,939 $ 484,346 $ 1,159,489
Interest income 42,659 75,945 12,592 15,602
Total revenue 1,271,214 1,529,884 496,938 1,175,091
Expenses:
Accounting and
legal fees 33,347 24,546 8,044 8,698
Management fee 55,872 49,010 18,624 17,217
Trustee fees 7,500 7,500 2,500 2,500
Miscellaneous 23,217 9,869 6,611 640
Total expenses 119,936 90,925 35,779 29,055
Net income $ 1,151,278 $ 1,438,959 $ 461,159 $ 1,146,036
<FN> See accompanying Notes to Financial Statements.
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE PERIOD ENDED SEPTEMBER 30, 1998
(Unaudited)
Managing
Shareholders Shareholder Total
Shareholders' equity, December 31, 1997 $ 7,013,370 $ (20,227) $ 6,993,143
Cash distributions (974,826) (9,847) (984,673)
Net income for the period 1,139,765 11,513 1,151,278
Shareholders' equity, September 30, 1998 $ 7,178,309 (18,561) $ 7,159,748
<FN>
See Accompanying Notes to Financial Statements
RIDGEWOOD ELECTRIC POWER TRUST I
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS AND QUARTERS ENDED SEPTEMBER 30, 1998
AND SEPTEMBER 30, 1997
(Unaudited)
Nine Months Ended
September 30, September 30,
1998 1997
Cash flows from operating activities:
Net income $ 1,151,278 $ 1,438,959
Adjustments to reconcile net income to
net cash flows from operating activities:
Additional investment
in power generation projects (251,569) (3,475,931)
Return of investment
in power generation project --- 3,259,152
Changes in assets and liabilities:
(Increase) decrease in advances
and due from affiliates (327,905) 31,528
Decrease (increase) in other assets 63,407 (3,092)
Increase (decrease) in
accounts payable and accrued expenses 33,741 (20,631)
Increase (decrease) in due to affiliates 162,288 (176,269)
Total adjustments (316,038) (385,243)
Net cash provided by operating activities 835,240 1,053,716
Cash flows from financing activities:
Cash distributions to shareholders (984,673) (608,596)
Net cash used in financing activities (984,673) (608,596)
Net (decrease) increase
in cash and cash equivalents (149,433) 445,120
Cash and cash equivalents,
beginning of period 1,042,568 327,322
Cash and cash equivalents, end of period $ 893,135 $ 772,442
<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 polices
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
Dollar amounts in this discussion are 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
Nine Months Ended September 30, Quarter Ended September 30,
1998 1997 1998 1997
Olinda $ 1,228,000 $ 1,291,000 $484,000 $1,159,000
South Boston --- 132,000 --- ---
Interest income 43,000 76,000 13,000 16,000
Total $ 1,271,000 $ 1,530,000 $497,000 $1,175,000
Total revenue decreased 17% to $1,271,000 in the first nine
months of 1998 from $1,530,000 in the first nine months of
1997, primarily due to a $63,000 decrease in income from the
Olinda Project and a $132,000 decrease from the South Boston
Project (which was closed in January 1997 and sold in late
1997). In the third quarter of 1998, total revenue decreased
58% to $497,000 from $1,175,000 in the third quarter of 1997
due to a $675,000 decrease in income from the Olinda project.
This decrease in third quarter revenue from the Olinda project
is due to the failure of the project's gas supplier to provide
gas during most of August 1998. The supplier's gas compressors,
which are used to transport landfill gas to the Olinda Project,
malfunctioned and installation by the supplier of replacements
was delayed. The supplier has provided substitute compressors
and the Trust is seeking reimbursement of substantially all of
the lost revenues from the gas supplier in accordance with the
contract terms. The decrease in revenue from the first nine
months of 1997 to the comparable 1998 period was a result of
this gas compressor malfunction, partially offset by increased
revenues earlier in the year resulting from the Trust's purchase
on June 1, 1997 of the subordinated equity interest in the Project
owned by the Project's former operator and the elimination of the
management agreement with that operator.
Expenses
Total expenses of $120,000 in the first nine months of 1998
increased by $29,000 from the $91,000 incurred in the same period
in 1997. The increase reflects timing differences in recording
of fees and expenses and minor changes in accounting estimates.
The $7,000 increase in Trust expenses from the third quarter
of 1997 to the third quarter of 1998 was caused by the same factors.
Liquidity and Capital Resources
During the first nine months of 1998, the Trust's net income
decreased to $1,151,000 as compared to $1,439,000 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 $252,000 of that cash for a complete overhaul of
the engines at the Olinda Project. As a result, cash flow
from operating activities for the first nine months of 1998 was
$835,000 as compared to $1,054,000 during the same period
in 1997. The Trust was nevertheless able to increase its
cash distributions to shareholders to $985,000 in the first
nine months of 1998 from $609,000 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 and remaining cash
balances 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
November 18, 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)