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 March 31, 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)
CALIFORNIA33-0023916
(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
March 31,September 30,
1997 1996
(Unaudited)
ASSETS
Assets:
Cash and cash equivalents$ 367,000$ 591,000
Notes receivable 860,000879,000
Inventories of growing crops 15,00015,000
Accrued interest receivable 33,00038,000
Property held for sale 1,162,0001,162,000
Other assets 18,000 18,000
TOTAL ASSETS $2,455,000$2,703,000
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts payable and accrued liabilities$ 49,000$ 49,000
TOTAL LIABILITIES 49,00049,000
Partners' equity 2,406,0002,654,000
TOTAL LIABILITIES AND
PARTNERS' EQUITY $2,455,000$2,703,000
See accompanying notes to financial statements
GREEN GOLD CONSOLIDATED
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Six Months Ending
March 31,
19971996
CROP SALES
$ 82,000
$ 52,000
OPERATING COSTS AND EXPENSES:
Cultural Care Costs 96,000 87,000
Professional services 66,000 77,000
Depreciation, property tax and other 29,000 43,000
Total Operating Costs and Expenses191,000 207
,000
LOSS FROM OPERATIONS (109,000)(155,000)
OTHER INCOME (EXPENSES):
Realized gross profit 14,000 11,000
Interest income 101,00
0 112,00
0
Other income 7,000 5,00
0
NET INCOME (LOSS)
$ 13,000
$ (27,000)
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP INTEREST
$ .0013 $ (.0027)
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
March 31,
1997 1996
CROP SALES $ 82,000 $
39,000
OPERATING COSTS AND EXPENSES:
Cultural Care Costs 52,000 38,000
Professional Services 37,000 28,000
Depreciation, property tax and other
4,000 8,000
Total Operating Costs and Expenses
93,000 74,000
LOSS FROM OPERATIONS (11,000) (35,000)
OTHER INCOME (EXPENSES):
Realized gross profit 8,000 6,000
Interest Income 47,000 55,000
Other Income 2,000 1,000
NET INCOME $46,000 $ 27,000
NET INCOME PER LIMITED
PARTNERSHIP INTEREST $ .0046 $.0027
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
CONSOLIDATED
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF CASH FLOWS
For the Six Months Ended March 31, 1997 and 1996
(Unaudited)
March 31,March 31,
1997 1996
Cash flows from operating activities:
Net income (loss)
$ 13,000
$ (27,000)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
1,00
0
6,00
0
Deferred profit recognized
(14,000)
(11,00
0)
Changes in assets and liabilities:
Net decrease (increase) in
receivables
5
,000
(6,000)
Decrease in other
assets
1,000
5,000
Increase in accounts payable
and accrued liabilities
1,000
-
Net cash used by operating activities
7,000
(33,000)
Cash flows from investing activities:
Collection on notes receivable 31,00
0
21
,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 31,000 21,000
Cash flows from financing activities:
Distributions to limited partners(250,000)(400,000)
Distributions to general partner (12,000) (12,000)
Net cash provided by financing
activities (262,000) (
412,000)
Net decrease in cash (224,000)(
424,000)
Cash at September 30 591,000
874,000
Cash at March 31 $ 367,000 $
450,00
0
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:
March 31,September 30,
1997 1996
First trust deed notes$1,874,000 $1,910,000
Less:
Deferred profit on real estate sales(915,000)(932,000)
Allowance for doubtful accounts (99,000) (99,000)
$ 860,000 $ 879,000
D. PROPERTY
Property is comprised of the following:
March 31,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 (427,000) (427,000)
$1,162,000 $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 March 31, 1997, were
$82,000, compared to
$39,000 for the same quarter in 1996. The quarterly
increase in crop revenue
is attributed to picking 131,000 pounds of avocados this
quarter compared to
49,000 the prior year's quarter ended March 31. Crop
prices for the quarter
ended March 31, 1997, averaged $.63 per pound compared to
$.78 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 March
31, 1997, increased
$19,000, from $74,000 to $93,000. Cultural care costs
increased $14,000 from
$38,000 to $52,000. The main reason for the increase
results from costs
associated with picking 82,000 pounds more this quarter
than last year.
Professional Services increased $9,000 from $28,000 to
$37,000. The increase
results from normal annual accounting fees being paid in
the second quarter
1997 compared to the first quarter in 1996.
Other income decreased $5,000 from $62,000 to $57,000.
Interest income
decreased $8,000 from $55,000 to $47,000, mainly as a
result of not accruing
interest on one delinquent note with a principal balance of
$140,000 and
having an average of $180,000 less cash available to place
into interest bearing
accounts. the one delinquent loan is secured by a First
Trust Deed on the
property and no losses are anticipated.
There were no sales in the quarter ended March 31, 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.
Liquidity and Capital Resources
As of March 31, 1997, the Partnership has cash reserves of
approximately
$332,000 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 March 31, 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: May 9, 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
