-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TkOSu06RZfYQP3BlIcJ8iAt5DNp65cuLsP00ktXTi+19vAFVb+KiqflVqxk1i5xz bdmal9IFNSOMXm9FvozoBw== 0000740124-97-000011.txt : 19970812 0000740124-97-000011.hdr.sgml : 19970812 ACCESSION NUMBER: 0000740124-97-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970811 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREEN GOLD CONSOLIDATED CENTRAL INDEX KEY: 0000740124 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE PRODUCTION - CROPS [0100] IRS NUMBER: 330023916 STATE OF INCORPORATION: CA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11533 FILM NUMBER: 97656012 BUSINESS ADDRESS: STREET 1: 340 ROSEWOOD AVE STE D CITY: CAMARILLO STATE: CA ZIP: 93010 BUSINESS PHONE: 8059876921 MAIL ADDRESS: STREET 2: 340 ROSEWOOD AVE STE D CITY: CAMARILLO STATE: CA ZIP: 93010 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 0-11533 GREEN GOLD CONSOLIDATED __________________________________________________________ (Exact name of registrant as specified in its charter) CALIFORNIA 33-0023916 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification Number) 591 West Los Angeles Avenue, Moorpark, CA 93021 (Address of principal executive office) (Zip Code) (805) 530-3858 (Registrant's telephone number, including area code) N/A (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. Yes [X] No [ ] PART I - FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS GREEN GOLD CONSOLIDATED (A CALIFORNIA LIMITED PARTNERSHIP) BALANCE SHEET June 30, September 30, 1997 1996 (Unaudited) --------- ------------ ASSETS Assets: Cash and cash equivalents $ 603,000 $ 591,000 Notes receivable 812,000 879,000 Inventories of growing crops 15,000 15,000 Accrued interest receivable 28,000 38,000 Property held for sale 1,161,000 1,162,000 Other assets 17,000 18,000 ---------- ---------- TOTAL ASSETS $2,636,000 $2,703,000 ========= ========= LIABILITIES AND PARTNERS' EQUITY Liabilities: Accounts payable and accrued liabilities $ 38,000 $ 49,000 ---------- ---------- TOTAL LIABILITIES 38,000 49,000 Partners' equity 2,598,000 2,654,000 ---------- --------- TOTAL LIABILITIES AND PARTNERS' EQUITY $2,636,000 $2,703,000 ========= ========= See accompanying notes to financial statements
GREEN GOLD CONSOLIDATED (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF OPERATIONS (Unaudited) For the Nine Months Ending June 30, 1997 1996 ----------- --------- CROP SALES $ 223,000 $ 151,000 OPERATING COSTS AND EXPENSES: Cultural Cae Costs 155,000 144,000 Professional services 94,000 103,000 Depreciation, property tax and other 63,000 73,000 ----------- ---------- Total Operating Costs and Expenses 312,000 320,000 LOSS FROM OPERATIONS (89,000) (169,000) OTHER INCOME (EXPENSES): Realized gross profit 137,000 17,000 Interest income 148,000 160,000 Other income 8,000 7,000 ---------- ---------- NET INCOME $ 204,000 $ 15,000 =========== ========== NET INCOME PER LIMITED PARTNERSHIP INTEREST $ .0204 $ .0015 =========== =========== Weighted average number of limited partnership interests outstanding during the period used to compute earnings per limited partnership interest 9,986,000 9,986,000 ========= ========= See accompanying notes to financial statements
GREEN GOLD CONSOLIDATED (A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF OPERATIONS (Unaudited) For Three Months Ending June 30, 1997 1996 ---------- --------- < c> CROP SALES $ 142,000 $ 99,000 Cultural Care Costs 59,000 57,000 Professional Services 28,000 25,000 Depreciation, property tax and other 34,000 30,000 ---------- --------- Total Operating Costs and Expenses 121,000 112,000 INCOME (LOSS) FROM OPERATIONS 21,000 (13,000) OTHER INCOME (EXPENSES): Realized gross profit 122,000 6,000 Interest Income 47,000 48,000 Other Income 1,000 2,000 ---------- --------- NET INCOME $ 191,000 $ 43,000 ========== ========= NET INCOME PER LIMITED PARTNERSHIP INTEREST $ .0191 $.0043 ========== ========= Weighted average number of limited partnership interests outstanding during the period used to compute earnings per limited partnership interest 9,986,000 9,986,000 ========= ========= See accompanying notes to financial statements
GREEN GOLD CONSOLIDATED (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENT OF CASH FLOWS For the Nine Months Ended June 30, 1997 and 1996 (Unaudited) June 30, June 30, 1997 1996 ----------- ---------- Cash flows from operating activities: Net income $ 204,000 $ 15,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,000 8,000 Deferred profit recognized (137,000) (16,000) Changes in assets and liabilities: Net decrease (increase) in receivables 10,000 (1,000) Decrease in other assets 1,000 7,000 Decrease in accounts payable and accrued liabilities (11,000) (1,000) ------------ ---------- Net cash used by operating activities 68,000 12,000 ------------ ---------- Cash flows from investing activities: Collection on notes receivable 204,000 32,000 Property Sold - 46,000 Deferred gain from property sold - 19,000 New note receivable from property sold - (65,000) ------------ ---------- Net cash provided by investing activities 204,000 32,000 ------------ --------- Cash flows from financing activities: Distributions to limited partners (250,000) (400,000) Distributions to general partner (10,000) (12,000) ----------- ---------- Net cash provided by financing activities (260,000) (412,000) ----------- ---------- Net increase (decrease) in cash 12,000 (368,000) Cash at September 30 591,000 874,000 --------- --------- Cash at June 30 $ 603,000 $ 506,000 ========= ========= See accompanying notes to financial statements
GREEN GOLD CONSOLIDATED (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS (Unaudited) A. SIGNIFICANT ACCOUNTING POLICIES Property and Depreciation - Property is stated at the lower of cost or net realizable value. Depreciation is provided on a straight-line method over the estimated useful lives of the respective assets. Inventories - Inventories, consisting of growing crops, is valued at the lower of cost or net realizable value under the first-in, first-out (FIFO) method. Cost is defined as cultural care costs related to the growing crops. Income Taxes - The Partnership reports its tax returns on the cash basis of accounting. No provision for income taxes is included in the accompanying financial statements as the Partnership's results of operations are distributed to the partners for inclusion in their respective income tax returns. Profit Recognition on Real Estate Sales - It is the Partnership's policy to defer profit on real estate sales until such time as the purchaser's cumulative investment and continued involvement in the property meet the minimum criteria for full profit recognition as set forth in the Financial Accounting Standards Board Statement No. 66, Accounting for Sales of Real Estate. Until such time as profit can be recognized under the full accrual method, the cost recovery and installment methods are used. Net Income Per Limited Partnership Interest - Net income per limited partnership interest was calculated using the weighted average of limited partnership interests outstanding during the year and the Limited Partners' share of the net income. B. GENERAL Green Gold Consolidated was organized in accordance with the Provisions of the California Uniform Limited Partnership Act for the purpose of receiving the assets and liabilities of twelve limited partnerships under common management and thereby consolidating the operations of those partnerships under an exchange transaction effective June 30, 1983. Under the exchange transaction, the Partnership issued 10,000,000 limited partnership interests (pro rata) to the holders of interests in the twelve individual limited partnerships in exchange for the assets and liabilities of those partnerships. Under the provisions of the partnership agreement, profits and losses are allocated in the ratio of 93.5% to the Limited Partners and 6.5% to the General Partner, provided that prior to the first fiscal quarter during which a distribution is made to the General Partner from the proceeds of the property sales or refinancing, all gains and losses resulting from property sales are allocated in the ratio of 99% to the Limited Partners and 1% to the General Partner. The combination of the twelve partnerships into one partnership was treated as a reorganization of entities under common control, accounted for similar to a "pooling of interest". C. NOTES RECEIVABLE Notes receivable consist of the following as of: June 30, September 30, 1997 1996 --------- ----------- First trust deed notes $1,703,000 $1,910,000 Less: Deferred profit on real estate sales (792,000) (932,000) Allowance for doubtful accounts (99,000) (99,000) ---------- --------- $ 812,000 $ 879,000 ========== ========== D. PROPERTY Property is comprised of the following: June 30, September 30, 1997 1996 Land $1,166,000 $1,166,000 Farm equipment 149,000 149,000 Trees 274,000 274,000 --------- --------- Total 1,589,000 1,589,000 Accumulated depreciation (428,000) (427,000) ---------- ---------- $1,161,000 $1,162,000 ========= ========= E. EARNINGS (LOSS) PER LIMITED PARTNERSHIP INTEREST Earnings (loss) per limited partnership interest have been computed by dividing the aggregate limited partners' share of net income (loss) by the weighted average number of limited partnership interests outstanding during the period, 9,986,000 in 1997 and 1996, respectively. F. MANAGEMENT AGREEMENT The Partnership has an agreement with Las Posas Investment Company and Mr. Neno Spondello, Jr. to manage and market the Partnership properties. G. STATEMENT BY MANAGEMENT In the opinion of the Management, the financial information presented herein reflects all adjustments which are necessary to a fair statement of the results for the interim periods presented. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Crop sales for the quarter ended June 30, 1997, were $142,000, compared to $99,000 for the same quarter in 1996. The quarterly increase in crop revenue is attributed to picking 204,000 pounds of avocados this quarter compared to 164,000 the prior year's quarter ended June 30. Crop prices for the quarter ended June 30, 1997, averaged $.69 per pound compared to $.61 per pound in the same quarter in 1996. Avocado production in 1997 is budgeted at 390,000 pounds; however, this may vary somewhat based on weather conditions, the impact of the normal tree cycle and the effects of the "avocado" persea mite. Pounds produced in 1996 were 380,000. Operating costs and expenses for the quarter ended June 30, 1997, increased $9,000, from $112,000 to $121,000. Cultural care costs increased $2,000 from $57,000 to $59,000. The main reason for the increase results from costs associated with picking 40,000 pounds more this quarter than last year. Professional Services increased $3,000 from $25,000 to $28,000. The increase results from payment of the 2% of gross partnership cash receipts to the "manager" for its services which was higher than the prior quarter ended June 30, due to a loan payoff and increased crop sales. Other expenses increased $4,000 from $30,000 to $34,000 mainly as a result of a computer system upgrade. Other income increased $114,000 from $56,000 to $170,000. The increase is mainly attributed to recognizing deferred profit of $116,000 from the early payoff of one note totaling $155,000 during the quarter ended June 30, 1997. There were no sales in the quarter ended June 30, 1997. The marketing and sales program is actively underway for all of the remaining 16 parcels totaling 146 acres. Sales activity in general remains slow for this type of property however it is showing signs of improvement. The Partnership has one note totaling $134,000 that is in default. This note receivable is secured by a first deed of trust on a 20 acre avocado ranch. If the delinquent status is not cured, the Partnership will reacquire the encumbered property and again offer it for sale. The Partnership has established an allowance for doubtful accounts totaling $99,000 as of June 30, 1997, which in management's opinion is more than adequate to cover any losses on this property. Liquidity and Capital Resources As of June 30, 1997, the Partnership has cash reserves of approximately $572,000 to cover operating expenses and the small amount of remaining real estate development costs. This is expected to be sufficient to comply with the business plan. PART II OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K (b) No reports on Form 8-K were filed by the Registrant during the quarter ended June 30, 1997. 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. DATE: August 8, 1997 GREEN GOLD CONSOLIDATED, a California limited partnership (Registrant) By: Economic Consultants, a California Partnership, General Partner By: /s/Daniel Lee Stephenson Daniel Lee Stephenson, General Partner By: /s/Tom A. Leevers Tom A. Leevers, General Partner -----END PRIVACY-ENHANCED MESSAGE-----