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: June, 2002 Commission File Number: 33-10196
---------- --------
(Exact name of registrant as specified in its charter)
California Almond Investors I
-----------------------------
A California Limited Partnership
California 94-3021790
- --------------------------------------------------------------------------------
(State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification No.)
2210 Northpoint Parkway, Santa Rosa, CA 95407
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(707) 579-3742
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(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 June 30, 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 209,079
Accounts Receivable, no allowance deemed necessary 66,411
Inventory-In Process 301,018
Deferred crop costs 43,119
Advances for farm costs
Current portion of notes receivable 6,825
-----------
Total Current Assets 624,452
NOTES RECEIVABLE-LONG TERM 500,175
-----------
PROPERTY AND EQUIPMENT
Land 718,609
Orchards 1,418,254
Equipment 754,871
Buildings 38,913
-----------
2,930,647
Less accumulated depreciation (2,188,647)
-----------
742,000
-----------
$ 1,868,627
===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 56,501
Payables to general partner and related parties
Current portion of long-term debt 24,000
-----------
Total Current Liabilities 80,501
LONG-TERM DEBT, less current portion 276,000
PARTNERS' EQUITY 1,512,627
-----------
$ 1,868,627
===========
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
Six Months Three Months
Ended Ended
June 30, 2002 June 30, 2002
-----------------------------
REVENUES
Gain on sale of almond orchards $180,219 $ 57,522
-------- --------
EXPENSES -- --
-------- --------
NET INCOME $180,219 $ 57,522
======== ========
NET INCOME PER LIMITED PARTNERSHIP UNIT $ 14.92 $ 4.76
NUMBER OF PARTNERSHIP UNITS 12,079 12,079
======== ========
No income statement is presented for the comparable prior periods as there was
no activity.
CALIFORNIA ALMOND INVESTORS I
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF CASH FLOWS
UNAUDITED
Six Months
Ended
June 30, 2002
-------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 180,219
Adjustment to reconcile net income to net cash from
operating activities
Gain on sale of almond orchards (180,219)
Changes in:
Accounts receivable 290,300
Inventory in process (301,137)
Advances for farm costs 5,400
Accounts payable and accrued liabilities 2,701
---------
Net cash from operating activities (2,736)
---------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of almond orchards 112,515
---------
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on long-term debt (12,000)
---------
NET CHANGE IN CASH 97,779
CASH, beginning of period 111,300
---------
CASH, end of period $ 209,079
=========
SUPPLEMENTAL CASH-FLOW INFORMATION
Non-cash investing activities
Notes receivable from sale of almond orchards $ 507,000
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 was sold on June 30, 2002. The sale price of the property was
$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 gain of $57,552.00 was generated by the property
sale.
PART I-FINANCIAL INFORMATION
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 continued to operate at a break-even rate in the second
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 second quarter, the Partnership sold the 78-acre Famosa Ranch. It was
decided to sell this ranch due to their low production. In 2001, the Famosa
Ranch had an operating loss of $154,167.00
Famosa Ranch Sale
This property was sold on June 30, 2002. The sale price of the property was
$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 gain of $57,522.00 was generated by the property
sale. The property was sold to Dennis W. Sexton and Shannon Marie Sexton. The
Buyers are not related to the General Partner, Charterhill Pacific Corp., or any
of their principals.
PART II
Item No.
- --------
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
(a) Exhibits:
99.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.
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:
-----------------------------------------------------
David A. Bade
President