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: September, 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 (I.R.S. Employer Identification No.)
of incorporation or organization)
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 September 30, 2002
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 179,965
Receivables from Partners, no allowance deemed necessary 66,411
Inventory-In Process 520,989
Deferred crop costs 43,119
Advances for farm costs
Current portion of notes receivable 11,593
-----------
Total Current Assets 822,077
NOTES RECEIVABLE-LONG TERM 489,744
-----------
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
-----------
$ 2,053,821
===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 225,260
Current portion of long-term debt 24,000
-----------
Total Current Liabilities 249,260
LONG-TERM DEBT, less current portion 276,000
PARTNERS' EQUITY 1,528,561
-----------
$ 2,053,821
===========
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 Nine Months
Ended Ended
September 30, September 30,
2002 2002
---------- --------
REVENUES
Gain on sale of almond orchards $ $180,219
$ 16,435 $ 16,435
---------- --------
$ 16,435 $196,654
EXPENSES -- --
---------- --------
NET INCOME $ 16,435 $196,654
========== ========
NET INCOME PER LIMITED PARTNERSHIP UNIT $ 1.36 $ 16.28
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
Nine Months
Ended
September 30, 2002
------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 196,654
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 (521,108)
Advances for farm costs 5,400
Accounts payable and accrued liabilities 171,460
---------
Net cash from operating activities (37,513)
---------
CASH FLOWS FROM INVESTING ACTIVITIES
Payments of notes receivable 5,663
Proceeds from sale of almond orchards 112,515
---------
Net cash from investing activities 118,178
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on long-term debt (12,000)
---------
NET CHANGE IN CASH 68,665
CASH, beginning of period 111,300
---------
CASH, end of period $ 179,965
=========
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 presentation.
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
In the first quarter, the Partnership sold the 41.4 acre Sierra Ranch and
the 81.2-acre Clausen Ranch. The 78 acre Famosa Ranch was sold in the
second quarter. 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 gain
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 gain 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 third
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.
Item 3. Controls and Procedures
Within the 90 day period prior to the date of this report, the
Partnership carried out an evaluation, under the supervision of the
General Partner and the General Partner's management, including its Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Partnership's disclosure controls and
procedures pursuant to Exchange Act Rule 15d-14 ( c ). Based *on that
evaluation, the General Partner concluded that the Partnership's
disclosure controls and procedures are effective in a timely manner to
alert them to material information relating to the Partnership which is
required to be included in the Partnership's periodic Securities and
Exchange Commission filings. There have been no significant changes in the
Partnership's internal controls or in other factors that could
significantly affect these controls subsequent to the evaluation date.
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 - None
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
CERTIFICATION REQUIRED BY
ITEM 307 OF REGULATION S-B
I, David Bade, President of Vintech Almond Advisers, Inc., Managing General
Partner of the Partnership, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of California Almond
Investors I, A California Limited Partnership;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures as necessary to
ensure that material information relating to the registrant is made
known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November 14, 2002
By: Vintech Almond Advisers, Inc.
A California Corporation,
Managing General Partner
By:
---------------------------------------
David A. Bade, President
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACTO OF 2002
In connection with the Quarterly Report of California Almond Investors
I, (the "Company") on Form 10-Q for the period ending June 30, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, David A. Bade of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as
adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to the best
of my knowledge:
(1) The Report fully complies with the requirements of section
13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in
all material respects, the financial condition and result of
operations of the Company.
CALIFORNIA ALMOND INVESTORS I
A California Limited Partnership
By: Vintech Almond Advisers, Inc.
A California Corporation,
Managing General Partner
By:
-------------------------------
David A. Bade
President
This certification accompanies this Report pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the
Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended.