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, 1999
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)
711 Daily Drive, Suite 120, Camarillo, CA 93010
(Address of principal executive office) (Zip Code)
(805) 987-6921
(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
March 31, September 30,
1999 1998
(Unaudited)
--------- ------------
<S> <C> <C>
ASSETS
Assets:
Cash and cash equivalents $ 654,000 $1,204,000
Notes receivable 597,000 666,000
Inventories of growing crops 8,000 8,000
Accrued interest receivable 16,000 17,000
Property held for sale 519,000 655,000
Other assets 10,000 17,000
---------- ----------
TOTAL ASSETS $1,804,000 $2,567,000
========= =========
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts payable and accrued
liabilities $ 63,000 $ 49,000
---------- ----------
TOTAL LIABILITIES 63,000 49,000
Partners' equity 1,741,000 2,518,000
---------- ---------
TOTAL LIABILITIES AND
PARTNERS' EQUITY $1,804,000 $2,567,000
========= =========
See accompanying notes to financial statements
</TABLE>
<TABLE>
GREEN GOLD CONSOLIDATED
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Six Months Ending
March 31,
1999 1998
----------- ---------
<S> <C> <C>
CROP SALES $ 23,000 $ 110,000
OPERATING COSTS AND EXPENSES:
Cultural Care Costs 35,000 80,000
Professional services 88,000 77,000
Depreciation, property tax and other 20,000 42,000
----------- ----------
Total Operating Costs and Expenses 143,000 199,000
LOSS FROM OPERATIONS (120,000) (89,000)
OTHER INCOME:
Realized gross profit 152,000 27,000
Interest income 95,000 91,000
Other income 4,000 6,000
---------- ----------
NET INCOME $ 131,000 $ 35,000
=========== ==========
NET INCOME PER LIMITED
PARTNERSHIP INTEREST $ .0131 $ .0035
=========== ===========
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
STATEMENTS OF OPERATIONS
(Unaudited)
For Three Months Ending
March 31,
1999 1998
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<S> <C> < c>
CROP SALES $ 8,000 $ 74,000
Cultural Care Costs 14,000 40,000
Professional Services 35,000 40,000
Depreciation, property tax and other 5,000 8,000
---------- ---------
Total Operating Costs and Expenses 54,000 88,000
INCOME (LOSS) FROM OPERATIONS (46,000) (14,000)
OTHER INCOME:
Realized gross profit 48,000 25,000
Interest Income 37,000 45,000
Other Income 1,000 2,000
---------- ---------
NET INCOME $ 40,000 $ 58,000
========== =========
NET INCOME PER LIMITED
PARTNERSHIP INTEREST $ .0040 $ .0058
========== =========
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 Six Months Ended March 31, 1999 and 1998
(Unaudited)
March 31, March 31,
1999 1998
----------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 131,000 $ 35,000
Adjustments to reconcile net income
to net cash provided by operating activities:
Deferred profit recognized (152,000) (27,000)
Changes in assets and liabilities:
Decrease in interest receivables 1,000 13,000
Decrease (increase) in other assets 8,000 (3,000)
Increase (decrease) in accounts payable
and accrued liabilities 14,000 (8,000)
------------ ----------
Net cash provided by operating activities 2,000 10,000
------------ ----------
Cash flows from investing activities:
Collection on notes receivable 302,000 152,000
New notes receivable (191,000) -0-
Property sold 136,000 -0-
Additions to deferred income from
property sales 109,000 -0-
------------ ----------
Net cash provided by investing
activities 356,000 152,000
------------ ----------
Cash flows from financing activities:
Distributions to limited partners (900,000) (320,000)
Distributions to general partner (8,000) (11,000)
----------- ----------
Net cash used by financing
activities (908,000) (331,000)
----------- ----------
Net (decrease) in cash (550,000) (169,000)
Cash at September 30 1,204,000 656,000
--------- ---------
Cash at March 31 $ 654,000 $ 487,000
========= =========
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:
March 31, September 30,
1999 1998
--------- -----------
First trust deed notes $ 1,277,000 $ 1,317,000
Accounts receivable -0- 75,000
Less:
Deferred profit on real estate sales (581,000) (627,000)
Allowance for doubtful accounts (99,000) (99,000)
---------- ---------
$ 597,000 $ 666,000
========== ==========
D. PROPERTY
Property is comprised of the following:
March 31, September 30,
1999 1998
Land $ 519,000 $ 651,000
Farm equipment 63,000 81,000
Trees 140,000 158,000
--------- ---------
Total 722,000 890,000
Accumulated depreciation (203,000) (235,000)
---------- ----------
$ 519,000 $ 655,000
========= =========
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 1999 and 1998, 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, 1999, were $8,000, compared to
$74,000 for the same quarter in 1998. The quarterly decrease in crop revenue is
attributed to picking 9,000 pounds of avocados this quarter compared to
124,000 the prior year's quarter ended March 31. Crop prices for the quarter
ended March 31, 1999, averaged $.89 per pound compared to $.59 per pound in
the same quarter in 1998. Avocado production in 1999 is budgeted at 160,000
pounds compared to 487,000 pounds in 1998. The crop estimate decrease results
from fewer avocado trees due to property sales totaling 99 acres in 1998,
leaving only 66 acres as of March 31.
Operating costs and expenses for the quarter ended March 31, 1999, decreased
$34,000, from $88,000 to $54,000. Cultural care costs decreased $26,000 from
$40,000 to $14,000. The reason for the decrease results from significantly
reduced planted acreage and related pounds picked in 1999 compared to 1998.
Professional Services decreased $5,000 from $40,000 to $35,000. Other expenses
decreased $3,000 from $8,000 to $5,000.
Other income increased $14,000 from $72,000 to $86,000. The increase is
mainly attributed to recognizing deferred profit of $48,000 for the quarter
ended March 31, 1999, compared to $25,000 the prior year. The early payoff of
one note totaling $87,000 during the quarter ended March 31, 1999 accounted for
$38,000 of the quarters deferred profit recognized. Interest income decreased
as a result of a reduction of the average outstanding notes receivable this
quarter compared to the prior year.
There were no sales in the quarter ended March 31, 1999. The marketing and
sales program is actively underway for all of the remaining 7 parcels totaling
66 acres.
Liquidity and Capital Resources
As of March 31, 1999, the Partnership has cash reserves of approximately
$597,000 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, 1999.
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: April 27, 1999 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
