FORM 10-QSB
[As last amended in Release No. 34-32231, April 28, 1993, 58
F.R. 26509]
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from ________________ to ______________
Commission file number 0-14452
Far West Electric Energy Fund, L.P.
(Exact name of small business issuer as specified in its
charter)
Delaware 87-0414725
State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification
No.)
921 Executive Park Drive, Suite B, Salt Lake City, Utah 84117
(Address of principal executive offices)
(801) 268-4444
Issuer's telephone number
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
past 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. Financial Statements
FAR WEST ELECTRIC ENERGY FUND, L.P.
Balance Sheets
December 31, 1995 and March 31, 1996
(Unaudited)
Assets 03/31/96 12/31/95
Utility plant:
Plant in service $ 15,999,000 $ 15,999,000
Equipment 613,000 588,000
Construction in progress 118,000 118,000
Accumulated depreciation (5,536,000) (5,377,000)
Net utility plant 11,194,000 11,328,000
Restricted Cash 1,040,000 1,026,000
Other assets 102,000 106,000
Current assets:
Cash 257,000 263,000
Receivables - Trade 428,000 399,000
Receivables - Other --- 6,000
Receivable - Related Party --- 238,000
Prepaid Insurance 39,000 4,000
Total current assets 724,000 910,000
Total assets $ 13,060,000 $ 13,370,000
The accompanying notes are an integral
part of these financial statements.
FAR WEST ELECTRIC ENERGY FUND, L.P.
Balance Sheets
December 31, 1995 and March 31, 1996
(Unaudited)
Partners' Capital and Liabilities 03/31/96 12/31/95
Partners' capital $ 5,326,000 $ 5,140,000
Other liabilities --- ---
Long-term debt:
Long-term debt,
excluding current portion 537,000 537,000
Notes payable - Related party 176,000 188,000
Partners' capital and Long-term
Liabilities 6,039,000 5,865,000
Current liabilities:
Current portion - Long-term debt 4,390,000 4,563,000
Note payable - Related party 1,165,000 1,159,000
Payable - Related party 408,000 671,000
Accrued Liabilities
Operations 313,000 402,000
Royalties 100,000 96,000
Interest 645,000 614,000
Total current liabilities 7,021,000 7,505,000
Total partners' capital
and liabilities $ 13,060,000 $13,370,000
The accompanying notes are an integral
part of these financial statements
FAR WEST ELECTRIC ENERGY FUND, L.P.
Statements of Operations
(Unaudited)
For The For The
3 Months 3 Months
Ended Ended
03/31/96 03/31/95
Revenues
Electric power sales $ 838,000 $665,000
Pumping charges 11,000 11,000
Royalty income 22,000 23,000
Other income --- ---
Total Revenues 871,000 699,000
Expenses
Depreciation 159,000 146,000
Royalty 130,000 106,000
Professional Services 23,000 21,000
Administrative services -
general partner 27,000 66,000
Amortization 4,000 4,000
Insurance 13,000 11,000
Maintenance 144,000 152,000
Other 5,000 11,000
Total Expenses 505,000 517,000
Income From Operations 366,000 182,000
Other Income (Expense):
Interest income 11,000 12,000
Interest (191,000)(277,000)
Loss on Sale of Property --- (170,000)
Net Other Expense (180,000)(435,000)
Net Income (Loss)
Before Extraordinary Item 186,000 (253,000)
Extraordinary Item - Early
Extinguishment of Debt - 358,000
Net Income $ 186,000 $105,000
The accompanying notes are an integral
part of these financial statements.
FAR WEST ELECTRIC ENERGY FUND, L.P.
Statements of Cash Flows
For the Three Months Ended March 31, 1996
(Unaudited)
03/31/96 03/31/95
Cash flows from operating activities:
Net income (loss) $ 186,000 $ 105,000
Adjustments for reconcile net loss to
net cash used in operating activities
Depreciation and amortization 163,000 150,000
Loss on Sale of Property - 170,000
Extraordinary Item - Early
Extinguishment of Debt - (358,000)
Change in assets and liabilities
Decrease (increase) in receivables (23,000) 102,000
Decrease (increase) in prepaid insurance (35,000) (27,000)
Decrease (increase) in other assets 4,000 5,000
Accrued Income Restricted Cash (14,000) (16,000)
Increase (decrease) in accounts
payable and accrued expenses (58,000) (75,000)
Increase (decrease) in amount payable
to Related Party (19,000) 148,000
Total Adjustments 18,000 99,000
Net cash provided by (used in)
operating activities 204,000 204,000
Cash flows from investing activities:
Purchase of plant and equipment (25,000) (29,000)
Disposal of plant and equipment - -
Net cash provided by (used in)
investing activities (25,000) (29,000)
Cash flows from financing activities:
Payment of principal on long-term debt (185,000) (195,000)
Issuance of Long-term debt - -
Net cash provided by (used in)
financing activities (185,000) (195,000)
Increase (decrease) in cash (6,000) (20,000)
Cash at beginning of period 263,000 278,000
Cash and Cash Equivalents
at the end of the period $ 257,000 258,000
Supplemental disclosures of cash flow information:
Cash paid during the period of interest $ 51,000 32,000
The accompanying notes are an integral
part of these financial statements.
Far West Electric Energy Fund, L.P.
March 31, 1996
Notes to Financial Statements
1. Interim Reporting
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles and with Form 10-QSB requirements. Accordingly, they
do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments
considered necessary for a fair presentation have been included.
Operating results for the three month period ended March 31, 1996,
are not necessarily indicative of the results that may be expected
for the year ended December 31, 1996. For further information,
refer to the financial statements and footnotes thereto included
in the Partnership's annual report on Form 10-KSB for the year
ended December 31, 1995.
2. Related Party Transactions
Under the terms of the Partnership Agreement, the General
Partner is allowed reimbursements of expenses incurred to manage
the Partnership. For the three month periods ended March 31, 1995
and 1996, the Partnership accrued, but did not pay, fees and
reimbursements to the general partner of $66,000 and $27,000
respectively.
3. Long-term Debt
In January 1990, the Partnership received the proceeds of an
$8,000,000 non-recourse refinancing of its Steamboat Springs
Project ("Project" or "Steamboat Springs Plant") with Westing house
Credit Corporation ("WCC"). The WCC loan, which is secured by the
Project assets including the resource lease, plant and equipment
and related contract rights, bears interest at 11.5% per annum and
must be repaid over ten years in 40 quarterly payments of principal
and interest. This loan is currently in default, primarily because
the loan reserves have not been maintained at required levels.
Item 2. Management's Discussion and Analysis of Results of Opera
tions and Financial Condition.
Overall electric power sales increased about 26% this past
quarter as compared to the first quarter of 1995. This increase
was due to a combination of factors; (1) fewer generator failures;
(2) improvement in condensor fans; (3) the computer operating
programs and (4) increased geothermal brine flows to the plant
originating from a test well located on a lease adjacent to the
lease on which the plant is located. Whether the plant will
continue to receive those flows in the future is unknown at this
time. Maintenance and repair costs this past quarter were about 5%
lower than those of the first quarter of 1995 due to prior plant
upgrades.
Interest expense for the quarter ended March 31, 1996
decreased by $86,000 as compared to the quarter ended March 31,
1995. A portion of this decrease is due to the sale of the Crystal
Springs Project and the associated debt which generated interest
expense. The additional decrease is due to the natural reduction
of interest charges over the life of the outstanding debt.
Liquidity and financial condition remained relatively
unchanged during the quarter ended March 31, 1996. However, as
discussed in the annual report, the power contract is scheduled to
change in the near future which may have a material adverse effect
on the financial condition of the Fund. See the December 31, 1995
annual report for a more detailed discussion of the upcoming change
in the power supply contract.
The Steamboat Springs Plant is in compliance with environ
mental and regulatory agencies.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There have been no material changes in the status of legal
proceedings since the Partnership's report on Form 10-KSB dated
December 31, 1995.
Item 5. Other Information
In a report dated September 4, 1993 the General Partner
reported to the Limited Partners on its efforts to restructure the
business of the Partnership so as to be able to resume
distributions to the Limited Partners. In summary the General
Partner concluded that the Partnership would be unable to generate
significant positive cash flow or resume distributions without the
infusion of cash sufficient to make capital improvements in the
Steamboat Springs Plant and/or buy out the Westinghouse loan and
certain royalty interests at a discount. The Partnership does not
have the financial resources to accomplish these goals. At present
and in the foreseeable future the Partnership is generating taxable
income without any cash distributions to pay the tax liabilities.
Therefore, it appears to the General Partner that it may be
advantageous to the Partnership to consider a sale of all the
Partnership assets.
The General Partner has recently executed a contract on behalf
of the Partnership with U.S. Envirosystems, Inc. (a Delaware
corporation) to sell the Steamboat Springs Power Plant. The sale
is conditioned on the approval of the Limited Partners. That
Contract was attached to a draft proxy statement describing the
details of the transaction, its tax effect and an opinion as to the
fairness of the proposed transaction, which has been submitted to
the Securities and Exchange Commission for its review. See Exhibit
10(aau). It is anticipated that these materials will be mailed to
the Limited Partners for their review and vote within thirty days.
If the proposed sale of the Steamboat Springs Plant is approved the
General Partner proposes to distribute all proceeds of the sale to
limited partners (after payment of debts and accounts to third
parties) and terminate the Partnership.
Item 6. Exhibits and Reports on Form 8-K
The Partnership did not file a report on Form 8-K during the
three months ended March 31, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned duly authorized persons.
Registrant: Far West Electric Energy Fund, L.P.
By: Far West Capital, Inc.,
General Partner
DATE: June 17, 1996 By: /s/
Thomas A. Quinn
Vice President
DATE: June 17, 1996 By: /s/
Jody Rolfson
Controller