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 December 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)
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 [ ]
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
GREEN GOLD CONSOLIDATED
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEET
December 31, September 30,
1997 1997
(Unaudited)
--------- ------------
<S> <C> <C>
ASSETS
Assets:
Cash and cash equivalents $ 315,000 $ 446,000
Short-term investment -0- 210,000
Notes receivable 755,000 807,000
Inventories of growing crops 15,000 15,000
Accrued interest receivable 30,000 32,000
Property held for sale 1,195,000 1,159,000
Other assets 16,000 16,000
---------- ----------
TOTAL ASSETS $2,326,000 $2,685,000
========= =========
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts payable and accrued
liabilities $ 44,000 $ 49,000
---------- ----------
TOTAL LIABILITIES 44,000 49,000
Partners' equity 2,282,000 2,636,000
---------- ---------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $2,326,000 $2,685,000
========= =========
See accompanying notes to financial statements
</TABLE>
<TABLE>
GREEN GOLD CONSOLIDATED
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ending
December 31,
1997 1996
----------- ---------
<S> <C> <C>
CROP SALES $ 37,000 $ -0-
OPERATING COSTS AND EXPENSES:
Cultural Cae Costs 40,000 45,000
Professional services 38,000 29,000
Depreciation, property tax and other 34,000 25,000
----------- ----------
Total Operating Costs and Expenses 112,000 99,000
LOSS FROM OPERATIONS (75,000) (99,000)
OTHER INCOME (EXPENSES):
Realized gross profit 2,000 6,000
Interest income 46,000 54,000
Other income 4,000 6,000
---------- ----------
NET LOSS $ (23,000) $ (33,000)
============ ===========
NET INCOME PER LIMITED
PARTNERSHIP INTEREST $ (.0023) $ (.0033)
=========== ===========
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
</TABLE>
<TABLE>
GREEN GOLD CONSOLIDATED
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF CASH FLOWS
For the Three Months Ended December 31, 1997 and 1996
(Unaudited)
December 31, December 31,
1997 1996
----------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (23,000) $ (33,000)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization -0- 1,000
Deferred profit recognized (2,000) (6,000)
Changes in assets and liabilities:
Decrease in receivables 2,000 1,000
Decrease in other assets 1,000 1,000
Decrease in accounts payable
and accrued liabilities (5,000) (5,000)
------------ ----------
Net cash used by operating activities (27,000) (41,000)
------------ ----------
Cash flows from investing activities:
Collection on notes receivable 17,000 13,000
------------ ----------
Net cash provided by investing
activities 17,000 13,000
------------ ---------
Cash flows from financing activities:
Distributions to limited partners (320,000) (250,000)
Distributions to general partner (11,000) (10,000)
----------- ----------
Net cash provided by financing
activities (331,000) (260,000)
----------- ----------
Net decrease in cash (341,000) (288,000)
Cash at September 30 656,000 591,000
--------- ---------
Cash at December 31 $ 315,000 $ 303,000
========= =========
See accompanying notes to financial statements
</TABLE>
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".<PAGE>
C. NOTES RECEIVABLE
Notes receivable consist of the following as of:
December 31, September 30,
1997 1997
--------- -----------
First trust deed notes $1,532,000 $1,693,000
Less:
Deferred profit on real estate sales (678,000) (787,000)
Allowance for doubtful accounts (99,000) (99,000)
---------- ---------
$ 755,000 $ 807,000
========== ==========
D. PROPERTY
Property is comprised of the following:
December 31, September 30,
1997 1996
Land $1,195,000 $1,159,000
Farm equipment 151,000 151,000
Trees 276,000 276,000
--------- ---------
Total 1,622,000 1,586,000
Accumulated depreciation (427,000) (427,000)
---------- ----------
$1,195,000 $1,159,000
========= =========
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
There were no crop sales for the quarter ended December 31, 1996 compared to
$37,000 for the same quarter in 1997. The crop picked this quarter totaled
25,000 pounds at an averaged of $1.49 per pound. The budgeted amount for 1998
is 487,000 of avocados at an average of $.60 pounds; however, this may vary
somewhat based on the impact of the normal tree cycle and the effects of the
"avocado" persea mite. In the prior year ended September 30, 1996, 416,000
pounds at an average of $.75 per pound were produced.
Operating costs and expenses for the quarter ended December 31, 1997 increased
$13,000, from $99,000 to $112,000. Cultural care costs decreased $5,000 from
$45,000 to $40,000. The decrease is mainly attributed to lower water costs
resulting from heavy rain fall this quarter. Professional services increased
$9,000 for the quarter ended December 31, 1997 from $29,000 to $38,000. The
increase is mainly attributed to accounting costs of $14,000 compared to $8,000
the prior year. Accounting costs overall are expected to remain at prior year
levels. Depreciation and other costs increased $10,000 from $25,000 to $35,000.
The variances are mainly attributed to increases in system costs of $3,000,
foreclosure costs of $2,000, filing fees of $2,000 for renewal of White Reports,
and property taxes of $2,000.
Other income for quarter ended December 31, 1997 decreased $14,000 from $66,000
to $52,000. The decrease mainly results from reduced interest income on notes
receivable totaling $10,000.
There were no sales during this quarter. 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 December 31, 1997, the Partnership has cash reserves of approximately
$279,000 to cover operating expenses and any small amount real estate sales
costs that may arise. 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 December 31, 1997.<PAGE>
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: February 11, 1998 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
