SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1954
For Quarter Ended: March 31, 2002 Commission File Number: 33-10196
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(Exact name of registrant as specified in its charter)
California Almond Investors I
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A California Limited Partnership
California 94-3021790
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(State or other jurisdiction of I.R.S. Employer Identification No.)
incorporation or organization
2210 Northpoint Parkway, Santa Rosa, CA 95407
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(Address of principal executive offices) (Zip Code)
(707) 579-3742
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last
report.)
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.
[x] Yes [ ] No
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
See following pages.
CALIFORNIA ALMOND INVESTORS I
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEET
UNAUDITED
March 31, 2002
ASSETS
CURRENT ASSETS
Cash $ 45,437
Investments, short term 133,149
Accounts Receivable, no allowance deemed necessary 218,170
Inventory in Process 193,376
Deferred crop costs 43,119
Advances for farm costs 2,596
Current portion of notes receivable 6,825
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Total Current Assets 642,672
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NOTES RECEIVABLE-LONG TERM 279,175
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PROPERTY AND EQUIPMENT
Land 718,609
Property Held for Sale 164,900
Orchards 1,418,254
Equipment 754,871
Buildings 38,913
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3,095,547
Less accumulated depreciation -2,188,647
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906,900
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$1,828,747
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LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 62,143
Current portion of long-term debt 24,000
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Total Current Liabilities 86,143
LONG-TERM DEBT, less current portion 288,000
PARTNERS' EQUITY 1,454,604
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$1,828,747
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The financial statements, in the opinion of management, reflect all adjustments
necessary to fairly state the financial position and the results of operations.
These results are not necessarily to be considered indicative of the results for
the entire year.
CALIFORNIA ALMOND INVESTORS I
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF INCOME
UNAUDITED
Three Months
Ended
March 31, 2002
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REVENUES
Gain on sale of almond orchards $122,697
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122,697
EXPENSES --
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NET INCOME $122,697
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NET INCOME PER LIMITED PARTNERSHIP UNIT $ 10.16
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No income statement is presented for the comparable prior period as there
was no activity.
CALIFORNIA ALMOND INVESTORS I
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF CASH FLOWS
UNAUDITED
Three Months
Ended
March 31, 2002
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 122,697
Adjustment to reconcile net income to net cash from operating activities
Gain on sale of almond orchards (122,697)
Changes in:
Accounts receivable 137,541
Inventory in process (192,452)
Advances for farm costs 2,804
Accounts payable and accrued liabilities 8,343
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Net cash from operating activities (43,764)
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CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of almond orchards 111,050
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NET CHANGE IN CASH 67,286
CASH, beginning of period 111,300
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CASH, end of period $ 178,586
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SUPPLEMENTAL CASH-FLOW INFORMATION
Non-cash investing activities
Notes receivable from sale of almond orchards $ 286,000
No cash flow statement is presented for the comparable prior period as there was
no income statement activity.
PART I-FINANCIAL INFORMATION
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The financial statements included herein have been prepared by the
Partnership, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted
pursuant to such rules and regulations. It is believed, however, that the
disclosures are adequate to make the information presented not misleading.
These financial statements should be read in conjunction with the
Partnership's December 31, 2001, audited financial statements and notes
thereto.
NOTE 2 - PROPERTY SALES
During the first quarter, the Partnership sold the 41.4 acre Sierra Ranch
and the 81.2-acre Clausen Ranch. An offer was accepted on the 78 acre
Famosa Ranch. It was decided to sell these three ranches due to their low
production. In 2001, the operating losses for these three ranches were
$340,071.39
Clausen Ranch Sale
The property was sold for $309,000. The terms of the sale were a cash down
payment of $100,000 and a mortgage note for the balance of $209,000. The
terms of the note call for semi-annual payments of $10,169.83 at an
interest rate of 7.5%. The balance of the note becomes due in 2007. A gross
profit of $115,729 was generated by the property sale.
Sierra Ranch Sale
The property was sold for $110,000. The terms of the sale were a cash down
payment of $33,000 and a mortgage note for the balance of $77,000. The
terms of the note call for semi-annual payments of $3,331.20 at an interest
rate of 6.0%. The balance of the note becomes due in 2005. A gross profit
of $28,905 was generated by the property sale.
Famosa Ranch Sale
This property is in escrow, but the sale is not due to close until June 4,
2002. The sale price of the property is $246,000. The terms of the sale
were a cash down payment of $25,000 and a mortgage note for the balance of
$221,000. The terms of the note call for quarterly payments of interest
only at an interest rate of 7.25%. The balance of the note comes due in
2007. A gross profit of $69,300 is expected to be generated by the property
sale.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Critical Accounting Policies
In the ordinary course of business, the Partnership has made a number of
estimates and assumptions relating to the reporting of results of
operations and financial condition in the preparation of its financial
statements in conformity with accounting principles generally accepted in
the United States of America. Actual results could differ significantly
from those estimates under different assumptions and conditions. The
Partnership believes that the following discussion address the
Partnership's most critical accounting policies, which are those that are
most important to the portrayal of the Partnership's financial condition
and results. The Partnership constantly re-evaluates these significant
factors and makes adjustments where facts and circumstances dictate.
Historically, actual results have not significantly deviated from those
determined using the necessary estimates inherent in the preparation of
financial statements. Estimates and assumptions include, but are not
limited to, the
estimated price per pound of the prior year's crop, the collectibility of
estimated amounts from the almond buyer, the collectibility of notes
receivable, and the useful life of depreciable assets.
Liquidity and Capital Resources
Although Partnership liquidity continues to decrease as production
costs for the 2002 crop continue, the Partnership will have sufficient
liquidity to complete the harvest and delivery of the current crop.
Results of Operations
The Partnership operations continued to operate at a break-even rate in
the first quarter 2002. This result is not indicative of the results for
the entire fiscal year, due to the seasonal nature of the almond growing
business. Almonds are harvested in August through October and the crop
revenues and expenses are recognized at that time. Since the partnership's
crop care has not been completed for this growing season, it is not
possible to say if cultural costs will be higher or lower than last year's
costs. At this time though, it seems that cultural costs will be
substantially the same as last year.
Almond Market
The 2002 almond crop is preliminarily projected to be between 900 and
925 million pounds, which would be a record crop. If this estimate is
correct, almond prices for the 2002 crop could be equal to or lower then
prices received for the 2001 crop. This continues to have a depressing
effect on the value of almond orchards in California, and has produced an
almond orchard market with few buyers and many sellers.
Property Sales
During the first quarter, the Partnership sold the 41.4 acre Sierra Ranch
and the 81.2 acre Clausen Ranch. An offer was accepted on the 78 acre
Famosa Ranch. It was decided to sell these three ranches due to their low
production. In 2001, the operating losses for these three ranches were
$340,071.39
Clausen Ranch Sale
The property was sold for $309,000. The terms of the sale were a cash down
payment of $100,000 and a mortgage note for the balance of $209,000. The
terms of the note call for semi-annual payments of $10,169.83 at an
interest rate of 7.5%. The balance of the note becomes due in 2007. A gross
profit of $115,729 was generated by the property sale. The property was
sold to Harjinder S. Mangat and Satwant K. Athwal. The Buyers are not
related to the General Partner, Charterhill Pacific Corp., or any of their
principals.
Sierra Ranch Sale
The property was sold for $110,000. The terms of the sale were a cash down
payment of $33,000 and a mortgage note for the balance of $77,000. The
terms of the note call for semi-annual payments of $3,331.20 at an interest
rate of 6.0%. The balance of the note becomes due in 2005. A gross profit
of $28,905 was generated by the property sale. The property was sold to
E.W. Merritt Farms, A General Partnership. The Buyer is not related to the
General Partner, Charterhill Pacific Corp., or any of their principals.
Famosa Ranch Sale
This property is in escrow, but the sale is not due to close until June 4,
2002. The sale price of the property is $246,000. The terms of the sale
were a cash down payment of $25,000 and a mortgage note for the balance of
$221,000. The terms of the note call for quarterly payments of interest
only at an interest rate of 7.25%. The balance of the note comes due in
2007. A gross profit of $69,300 is expected to be generated by the property
sale. The property is being sold to John F. Clement and
Sylvia June Clement. The Buyers are not related to the General Partner,
Charterhill Pacific Corp., or any of their principals.
PART II
Item No.
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1. Material developments in connection with legal proceeding - not
applicable
2. Material modification of rights of registrant's securities - not
applicable
3. Defaults on senior securities - not applicable
4. Submission of matters to a vote of security holders - not applicable
5. Other events of importance - not applicable
6. Exhibits and Reports on Form 8-K - not applicable
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 thereunto duly authorized.
CALIFORNIA ALMOND INVESTORS I
A California limited partnership
By: Vintech Almond Advisers, Inc.
A California corporation,
Managing General Partner
By:
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David A Bade
President