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, 2003 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
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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 (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 March 31, 2003
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 324,141
Accounts Receivable, no allowance deemed necessary 225,739
Inventory-In Process 160,676
Deferred crop costs 39,594
Advances for farm costs --
Accrued Interest Receivable 12,108
Current portion of notes receivable 8,004
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Total Current Assets 770,262
NOTES RECEIVABLE-LONG TERM 490,001
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PROPERTY AND EQUIPMENT
Land 718,609
Orchards 1,418,254
Equipment 754,871
Buildings 38,913
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2,930,647
Less accumulated depreciation (2,190,060)
-----------
740,587
-----------
$ 2,000,850
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LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 37,114
Current portion of long-term debt 24,000
-----------
Total Current Liabilities 61,114
LONG-TERM DEBT, less current portion 264,000
PARTNERS' EQUITY 1,675,736
-----------
$ 2,000,850
===========
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 Three Months
Ended Ended
March 31, 2003 March 31, 2002
------------------------------------
REVENUES
Gain on sale of almond orchards $ $122,697
Interest and other $ 9,152
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$ 9,152 122,697
EXPENSES -- --
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NET INCOME $ 9,152 122,697
==============================
NET INCOME PER LIMITED PARTNERSHIP UNIT $ 0.76 $ 10.16
NUMBER OF PARTNERSHIP UNITS 12,079 12,079
==============================
CALIFORNIA ALMOND INVESTORS I
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF ICASH FLOWS
UNAUDITED
Three Months Three Months
Ended Ended
March 31, 2003 March 31, 2002
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 9,152 $ 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 142,769 137,541
Interest receivable (6,760)
Deferred crop costs (153,838) (192,452)
Advances fro farm costs 1,500 2,804
Accounts payable and accrued liabilities (31,388) 8,343
Payable to related parties (3,636)
-----------------------------------
Net cash from operating activities (42,201) (43,764)
-----------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
Payments received on notes receivable 3,331
Proceeds from sale of almond orchards 111,050
-----------------------------------
Net cash from investing activities 3,331 111,050
-----------------------------------
NET CHANGE IN CASH (38,870) 67,286
CASH, beginning of period 363,011 111,300
CASH, end of period $ 324,141 $ 178,586
===================================
SUPPLEMENTAL CASH-FLOW INFORMATION
Non-cash investing activities $ $ 286,000
Notes receivable from sale of almond orchards
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, 2002, audited financial
statements and notes thereto.
NOTE 2 - INTEREST INCOME
During 2002, the Partnership sold three ranches due to low production. The
Partnership financed the three sales through long-term mortgage notes, with
interest ranging from 6% to 7.5%. Interest income is recognized as earned, as it
does not relate to the current year farming operations.
PART I-FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Introduction
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 the following discussion
addresses the most critical accounting policies, which are those that are most
important to the portrayal of the Partnership's financial condition and results.
The Partnership re-evaluates these significant factors as necessary 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:
estimated price per pound, useable lives of the orchards and related assets,
collectibility of receivables, and the deferral of certain crop costs. These
accounting policies are applied consistently for all years presented.
Information about the impact on our operating results is included in the
footnotes to our consolidated financial statements. "
Liquidity and Capital Resources
The partnership generally receives payments from crop sales in installments
over the twelve months following harvest. The partnership retained sufficient
cash proceeds from the 2002 crop and has secured sufficient additional crop
financing necessary to sustain production of the 2003 crop. The portion of the
additional financing expected for the 2003 crop, if needed, will be supplied by
the almond processor. This practice is common to the industry since final cash
receipts for any crop year may extend beyond twelve months from the harvest. The
General Partner believes that these sources provide adequate capital for the
operating needs of the Partnership in 2003.
Results of Operations
The Partnership continued to operate at a break-even rate in the first
quarter 2003. 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.
Future Property Sales
The California Almond Industry is currently going through a period in which
supply exceeds demand. In the last few years, almond production has increased
more rapidly than the markets have expanded. This has resulted in lower than
normal prices for almonds and depressed prices for almond properties. This trend
is expected to continue, until supply and demand can be brought into balance. At
this time there is no way to know when this will be.
Because of the current condition of the almond industry and the aging of
the almond trees on the Partnership properties, the General Partner has decided
to put the three remaining properties up for sale. It is intended that the
properties will be listed for sale after the harvest of the 2003 crop so that
the Partnership can retain the crop income. After the sale of the last property,
the liquidation of the Partnership will start. At this time there is no way to
estimate the time of the final liquidation, due to the delayed payment for the
2003 crop and the notes the Partnership holds on the three properties that were
sold in 2002.
Almond Market
The 2003 almond crop is preliminarily projected to be between 900 and 925
million pounds. If this estimate is correct, almond prices for the 2003 crop
could be equal to or lower then prices received for the 2002 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-Q 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. I arm 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 me 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 my conclusions about the effectiveness of
the disclosure controls and procedures based on my evaluation as of the
Evaluation Date;
5. 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. 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 my most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: May 15, 2003
By: Vintech Almond Advisers, Inc.
A California Corporation,
Managing General Partner
By:
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David A. Bade, President
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of California Almond Investors I,
(the "Company") on Form 10-Q for the period ending March 31, 2003 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.