SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1995 Commission File Number 2-95219
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Massachusetts 04-2859087
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
One International Place, Boston, MA 02110
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 330-8600
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
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
(UNAUDITED) (NOTE 1)
PART I - FINANCIAL INFORMATION
<TABLE>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------- ---------------
1995 1994 1995 1994
---------- -------- -------- ------
<S> <C> <C> <C> <C>
Fruit Sales $ - $ - $4,008,318 $3,852,835
Less - Harvesting expenses - - 1,038,772 910,484
---------- ---------- ---------- ----------
Net Fruit Sales - - 2,969,546 2,942,351
Cost of Fruit Sales - - 1,769,115 1,566,556
---------- ---------- ---------- ----------
Operating Margin - - 1,200,431 1,375,795
Other Revenues:
Interest income 50,609 35,864 126,261 76,225
Other Expenses:
Interest expense 1,018,984 613,632 2,315,461 1,751,461
Grove management fees 49,416 45,027 150,316 144,585
Partnership management fees 102,105 80,000 252,105 235,000
Real estate taxes 16,314 44,248 48,943 114,836
Amortization 11,416 11,416 34,248 34,248
Building depreciation 2,095 2,368 6,285 7,105
General Administrative 5,367 (18,503) 39,829 26,878
---------- ---------- ---------- ----------
1,205,697 778,187 2,847,187 2,314,113
---------- ---------- ---------- ----------
Net Income/(Loss) (1,155,088) $ (742,324) $ (1,520,495) $ (862,093)
========== ========== ============ ==========
Net Income/(Loss)
allocated to General Partner $ (115,509) $ (74,232) $ (152,050) $ (86,209)
========== ========== =========== ==========
Net Income/(Loss)
allocated to Limited Partners (1,039,579) $ (668,092) $ (1,368,445) $ (775,884)
========== ========== ============ ==========
Net Loss per Unit of Limited
Partnership Interest $ (67.07) $ (43.10) $ (88.29) (50.06)
========== =========== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
BALANCE SHEETS
ASSETS
(NOTE 1)
September 30, December 31,
1995 1994
(Unaudited) (Audited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents......................................... $ 3,336,847 $ 3,124,628
Accounts receivable............................................... - 99,102
Inventory......................................................... 1,786,225 1,769,116
Other assets...................................................... 32,080 48,757
----------- -----------
$ 5,155,152 $ 5,041,603
Property, net......................................................... 18,570,537 19,064,407
Deferred financing costs............................................. 16,108 50,356
----------- -----------
$23,741,797 $24,156,366
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Notes payables ................................................... $21,976,860 $ -
Accrued interest.................................................. 1,518,584 1,186,622
Other liabilities................................................. 538,170 124,206
----------- -----------
24,033,614 1,310,828
Long-term notes payable............................................... - 21,616,860
Partners' Capital:
Limited Partners, $1,000 stated value per
Unit; 15,500 Units authorized, issued
and outstanding................................................ 887,970 2,256,415
General Partner................................................... (1,179,787) (1,027,737)
----------- -----------
(291,817) 1,228,678
$23,741,797 0 $24,156,366
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(UNAUDITED) (NOTE 1)
NINE MONTHS ENDED
SEPTEMBER 30
--------------
1995 1994
-------- ------
<S> <C> <C>
Cash Flows From Operating Activities:
Cash received from customers...................................... $ 4,107,420 $ 3,855,752
Cash paid to suppliers............................................ (2,385,609) (2,329,736)
Interest received................................................. 126,261 77,228
Interest paid..................................................... (1,623,500) (773,010)
----------- -----------
Net cash provided by operating activities......................... 224,572 830,234
----------- -----------
Cash Flows From Investing Activities:
Capital expenditures.............................................. (12,353) -
----------- --------
Net cash used in investing activities............................. (12,353) -
----------- --------
Net Increase in Cash and Cash
Equivalents....................................................... 212,219 830,234
----------- -----------
Cash and Cash Equivalents at Beginning
of Period......................................................... 3,124,628 2,475,681
----------- -----------
Cash and Cash Equivalents at End of Period............................ $ 3,336,847 $ 3,305,915
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(CONTINUED)
(UNAUDITED) (NOTE 1)
Reconciliation of net loss to net cash provided by operating activities:
NINE MONTHS ENDED
SEPTEMBER 30,
1995 1994
<S> <C> <C>
Net Loss $ (1,520,495) $ (862,093)
Adjustments to Reconcile
Net Loss to Net Cash Provided
By Operating Activities:
Depreciation and amortization................................ 40,533 41,353
Decrease (Increase) in:
Accounts Receivable..................................... 99,102 277,896
Inventory............................................... (17,109) (347,365)
Other Assets............................................ 16,677 (18,290)
Increase in:
Accrued Interest........................................ 331,962 605,712
Other Liabilities....................................... 413,964 262,976
Depreciation capitalized to inventory........................ 499,938 497,305
Accrued interest on refinanced
long-term debt.......................................... 360,000 -
----------- -----------
Net Cash Provided by Operating Activities............................. $ 224,572 $ 830,234
=========== ===========
</TABLE>
Disclosure of accounting policy:
For purposes of the statement of cash flows, the company considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents.
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE NINE MONTHS
ENDED SEPTEMBER 30,
1995 AND 1994
(UNAUDITED) (NOTE 1)
Limited Partners General
Units Capital Partner Total
<S> <C> <C> <C> <C>
Balance, December 31, 1994 15,500 $2,256,415 $(1,027,737) $1,228,678
Net Loss (1,368,445) (152,050) (1,520,495)
---------- ---------- ----------- ----------
Balance, September 30, 1995 15,500 887,970 $(1,179,787) (291,817)
========== ========== =========== ==========
Balance, December 31, 1993 15,500 $3,412,696 $ (899,261) $2,513,435
Net Loss (775,884) (86,209) (862,093)
---------- ---------- ----------- ----------
Balance, September 30, 1994 15,500 $2,636,812 $ (985,470) $1,651,342
========== ========== =========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(UNAUDITED)
1. ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein have been prepared
by the Registrant, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. The Registrant's accounting
and financial reporting policies are in conformity with generally
accepted accounting principles and include adjustments in interim
periods considered necessary for a fair presentation of the results of
operations. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant
to such rules and regulations. It is suggested that these condensed
financial statements be read in conjunction with the financial
statements and the notes thereto included in the Registrant's latest
annual report on form 10-K.
The accompanying financial statements reflect the Partnership's results
of operations for an interim period and are not necessarily indicative
of the results of operations for the year ending December 31, 1994.
2. TAXABLE LOSS
The Partnership's results of operations on a tax basis are expected to
differ from net loss for financial reporting purposes primarily due to
the accounting differences generated by using accelerated depreciation
methods and uniform Capitalization Rules under I.R.C. Section 263A used
for tax purposes.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Cash and equivalents of approximately $3,336,847 at September 30, 1995 are
sufficient to meet the Partnership's working capital and liquidity requirements.
See below for discussion on the Mortgages Payable.
RESULTS OF OPERATIONS/VARIATIONS IN INTERIM PERIODS
The principal differences between the results of operations for the third
quarter of 1995 and that of 1994 are as follows:
1) A slight decrease in the pounds-solid per box and a slight increase in
the price received per pound solid were noted. During 1994
approximately $540,000 was recognized under participation agreements
with fruit processors with respect to the previous crop year. During
1995, a final settlement of $62,400 has been recognized under
participation agreements for the 1993-1994 crop year.
2) Harvesting expenses were consistent at $1.94 per box in 1995 and 1994.
3) Cost of fruit sales per box (which consist primarily of inventoried
horticultural costs) increased slightly from $3.34 in 1994 to $3.35 in
1995.
4) Interest expense for the nine months ended September 30, 1995 increased
as a result of the increase in the prime rate on the first mortgage.
5) Interest income increased due to the increase in cash and cash
equivalents.
6) Mortgages payable are due January 31, 1996. Due to the continued weak
per pound solid prices for oranges, the partnership believes that a
sale or refinancing may not produce adequate proceeds to repay such
debts. The Partnership has commenced discussions with the second
mortgage lender regarding this issue, but no agreement has been reached
to date.
<PAGE>
PART II - OTHER INFORMATION
Items 1, 2, 3 and 4 are inapplicable.
Item 5. Other Information.
All items are inapplicable.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
INDIAN RIVER CITRUS INVESTORS
LIMITED PARTNERSHIP
(Registrant)
By: Winthrop Agricultural Management, II, Inc.
General Partners
By: /s/ Anthony R. Page
Anthony R. Page
Chief Financial Officer
By: /s/ Richard J. McCready
Richard J. McCready
Chief Operating Officer
DATED: November 14, 1995
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
nine month period ending September 30, 1995 and is
qualified in its entirety by reference to such financial
statements
</LEGEND>
<CIK> 0000760612
<NAME> Indian River Citrus Investors Ltd Partnership
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1.00000
<CASH> 3336847
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 1786225
<CURRENT-ASSETS> 32080
<PP&E> 24469930
<DEPRECIATION> 5899393
<TOTAL-ASSETS> 23741797
<CURRENT-LIABILITIES> 2056754
<BONDS> 21976860
<COMMON> 0
0
0
<OTHER-SE> (291817)
<TOTAL-LIABILITY-AND-EQUITY> 23741797
<SALES> 0
<TOTAL-REVENUES> 4134579
<CGS> 1769115
<TOTAL-COSTS> 1529965
<OTHER-EXPENSES> 40533
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2315461
<INCOME-PRETAX> (1520495)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1520495)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1520495)
<EPS-PRIMARY> (88.29)
<EPS-DILUTED> 0.000
</TABLE>
