10QSB 1 p18504_10q.txt FORM 10QSB 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 -------------- -------- (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 incorporation I.R.S. Employer 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 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 ---------- Total Current Assets 3,396,835 ========== LIABILITIES AND PARTNERS' EQUITY PARTNERS' EQUITY 3,396,835 ==========
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 -------------------------------- REVENUES Interest and other $ 5,392 $ 9,152 Gain on sale of almond orchards $1,816,370 -------------------------------- $1,821,762 9,152 EXPENSES 177,590 -------------------------------- NET INCOME $1,644,172 9,152 ================================ NET INCOME PER LIMITED PARTNERSHIP UNIT $ 136.12 $ 0.76 ================================ 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 --------------------------------- 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) --------------------------------- Net cash from operating activities 5,362 (42,201) --------------------------------- 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) --------------------------------- Net cash from investing activities 2,558,875 3,331 --------------------------------- CASH FLOW FROM FINANCING ACTIVITIES Debt repayment (264,000) --------------------------------- 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 =================================
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 ------------ 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 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 --------------------- 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 -------------- 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 --------------------------------------- David A. Bade President