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, 2004 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 incorporation I.R.S. Employer
or organization Identification No.)
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 March 31, 2004
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $2,777,411
Accounts Receivable, no allowance deemed necessary 230,294
Notes receivable held for sale, less allowance for discounts 389,130
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Total Current Assets 3,396,835
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LIABILITIES AND PARTNERS' EQUITY
PARTNERS' EQUITY 3,396,835
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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 Three Months
Ended Ended
March 31, 2004 March 31, 2003
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REVENUES
Interest and other $ 5,392 $ 9,152
Gain on sale of almond orchards $1,816,370
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$1,821,762 9,152
EXPENSES 177,590
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NET INCOME $1,644,172 9,152
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NET INCOME PER LIMITED PARTNERSHIP UNIT $ 136.12 $ 0.76
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NUMBER OF PARTNERSHIP UNITS 12,079 12,079
CALIFORNIA ALMOND INVESTORS I
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF CASH FLOWS
UNAUDITED
Three Months Three Months
Ended Ended
March 31, 2004 March 31, 2003
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CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,644,172 $ 9,152
Adjustment to reconcile net income to net
cash from operating activities
Gain on sale of almond orchards (1,816,370)
Allowance for discount on notes receivable 97,283
Changes In:
Accounts receivable 95,177 142,769
Interest receivable 9,128 (6,760)
Deferred crop costs (153,838)
Advances fro farm costs 4,905 1,500
Accounts payable and accrued liabilities (1,990) (31,388)
Payable to related parties (26,943) (3,636)
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Net cash from operating activities 5,362 (42,201)
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CASH FLOW FROM INVESTING ACTIVITIES
Payments received on notes receivable
3,331 3,331
Proceeds from sale of almond orchards 2,625,000
Expenses paid related to property sales (69,456)
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Net cash from investing activities 2,558,875 3,331
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CASH FLOW FROM FINANCING ACTIVITIES
Debt repayment (264,000)
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NET CHANGE IN CASH 2,300,237 (38,870)
CASH, beginning of period 477,174 363,011
CASH, end of period $ 2,777,411 $ 324,141
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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, 2003, audited financial
statements and notes thereto.
NOTE 2 - INTEREST INCOME
During 2002, the Partnership sold three ranches due to low production, and
financed the sales through long term mortgage notes, with interest ranging from
6% to 7.5%. The Partnership is in the process of selling these notes in an
effort to liquidate the remaining assets held, and estimates that up to 20%
discounts will be recognized on the sale of each note. As of March 31, 2004, a
reserve for $97,283 was recorded against the face values of the notes to
approximate net realizable value.
PART I-FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Introduction
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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
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The cash proceeds from the sale of the properties are being deposited
in the Partnership's money market account at Charles Schwab. With the sale of
the Robertson Ranch the account has in excess of $2,500,000.00 deposited. It is
the intention to set these funds aside to be used as part of the final
Partnership liquidation distribution.
Results of Operations
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The Partnership is currently in the process of liquidation. All
properties have been sold and the funds received deposited in a liquidation
account. This account currently has a balance of $2,523,472. The General Partner
is currently endeavoring to sell the notes receivable on the Clausen, Sierra,
and Famosa Ranches. If a sale of the notes can be completed in 2004, the
Partnership will be liquidated in 2004. If not, the liquidation will be
postponed until the notes are sold or are paid in full.
Property Sales
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Cressey Ranch
The Cressey Ranch was sold on February 2, 2004 to Duarte & Souza Farms. The
buyer is not related to the General Partner, Charterhill Pacific Corp., or any
of their principals.
The property was sold for $610,000.00. The sale was for cash and the Partnership
paid a 6% real estate commission.
Hooker Ranch
On January 23, 2004, the Hooker Ranch was sold to the Dave Wilson Nursery. The
nursery is adjutant to the ranch and they need the acreage to expand their
nursery business. The buyer is not related to the General Partner, Charterhill
Pacific Corp., or any of their principals.
The sale price for the property was $1,800,000.00. The sale was for cash and the
Partnership paid no real estate commissions in connection with the sale.
Robertson Ranch
On March 25, 2004, the Robertson Ranch was sold to Gurbax Singh and Kulwant K.
Singh. The property was sold for $215,000, and was a cash sale. The sale
generated a profit of $135,807. The buyers are not related to the General
Partner, Charterhill Pacific Corp., or any of their principals
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 -
(a) Exhibits
31.1 Certification of General Partner pursuant to Section 302 of the
Sarbanes -Oxley Act of 2002
32.1 Certification of General Partner pursuant to Section 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley act of 2002
(b) Reports on Form 8-K were filed on February 18, and March 25,
2004,to provide information related to the sales of orchard
properties.
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: /s/ DAVID A. BADE
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David A. Bade
President