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 March 31, 1995 Commission File Number 2-95219
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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
The accompanying notes are an integral part of these financial statements.
<PAGE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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 recommended 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, 1995.
2. TAXABLE LOSS
The Partnership's results of operations on a tax basis are expected to
differ from net income 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.
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 THREE MONTHS ENDED MARCH 31, 1994 AND 1993
(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 (634,783) (70,531) (705,314)
------ ---------- ----------- ----------
Balance, March 31, 1995 15,500 $1,621,632 $(1,098,268) $ 523,364
====== ========== =========== ==========
Balance, December 31, 1993 15,500 $3,412,696 $(899,261) $2,513,435
Net Loss (259,033) (28,782) (287,815)
------ ---------- --------- ----------
Balance, March 31, 1994 15,500 $3,153,663 $(928,043) $2,225,620
====== ========== ========= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
PART I - FINANCIAL INFORMATION
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
(UNAUDITED) (NOTE 1)
<TABLE>
THREE MONTHS ENDED
MARCH 31,
--------------
1995 1994
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<S> <C> <C>
Fruit Sales........................................................... $ 714,549 $ 857,634
Less - Harvesting expenses................................... 226,070 136,404
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Net Fruit Sales.......................................... 488,479 721,230
Cost of Fruit Sales.......................................... 398,460 242,726
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Operating Margin......................................... 90,019 478,504
Other Revenues:
Interest income.............................................. 22,396 15,613
Other Expenses:
Interest expense............................................. 644,657 565,771
Grove management fees........................................ 51,483 60,586
Partnership management fees.................................. 75,000 75,000
Real estate taxes............................................ 14,700 33,488
Amortization................................................. 11,416 11,416
Building depreciation........................................ 2,368 2,368
General & Administrative..................................... 18,105 33,303
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817,729 781,932
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Net Loss.............................................................. (705,314) $(287,815)
========= =========
Net Loss allocated to General Partner................................. (70,531) $ (28,782)
========= =========
Net Loss allocated to Limited Partners................................ (634,783) $(259,033)
========= =========
Net Loss per Unit of Limited
Partnership Interest......................................... $ (40.95) $ (16.71)
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
BALANCE SHEETS
ASSETS
(NOTE 1)
<TABLE>
March 31, December 31,
1995 1994
(Unaudited) (Audited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents....................................... $ 1,840,000 $ 3,124,628
Accounts receivable............................................. 281,048 99,102
Inventory....................................................... 1,962,781 1,769,116
Other assets.................................................... 43,504 48,757
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4,127,333 5,041,603
Property, net......................................................... 18,907,046 19,064,407
Deferred financing costs.............................................. 38,940 50,356
----------- -----------
$23,073,319 $24,156,366
=========== ===========
</TABLE>
LIABILITIES AND PARTNERS' CAPITAL
<TABLE>
<S> <C> <C>
Current Liabilities:
Accrued interest................................................ $ 531,002 $ 1,186,622
Other liabilities............................................... 402,093 124,206
Notes payables 21,616,860 0
----------- -------
22,549,955 1,310,828
Long-term notes payable............................................... 21,616,860 21,616,860
Partners' Capital:
Limited Partners, $1,000 stated value per
Unit; 15,500 Units authorized, issued
and outstanding.............................................. 1,621,632 2,256,415
General Partner................................................. (1,098,268) (1,027,737)
----------- -----------
$23,073,319 $24,156,366
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(UNAUDITED) (NOTE 1)
<TABLE>
THREE MONTHS ENDED
MARCH 31,
--------------
1995 1994
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<S> <C> <C>
Cash Flows From Operating Activities:
Cash paid to suppliers.......................................... (521,625) (1,142,352)
Interest received............................................... 22,392 15,613
Interest paid................................................... (1,300,277) (525,510)
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Net cash used in operating
activities................................................... (1,272,975) (766,615)
------------ -----------
Cash Flows From Investing Activities:
Capital expenditures............................................ (11,653) 0
------------ -----------
Net cash used in investing activities........................... (11,653) 0
------------ -----------
Net Decrease in Cash and Cash Equivalents............................. (1,284,628) (766,615)
------------ -----------
Cash and Cash Equivalents at Beginning
of Period....................................................... 3,124,628 2,475,681
------------ -----------
Cash and Cash Equivalents at End of Period............................ $ 1,840,000 $ 1,709,066
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
INDIAN RIVER CITRUS INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(CONTINUED)
(UNAUDITED) (NOTE 1)
Reconciliation of net loss to net cash provided (used) by operating activities:
<TABLE>
THREE MONTHS ENDED
MARCH 31,
--------------
1995 1994
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<S> <C> <C>
Net Loss $ (705,314) $(287,815)
Adjustments to Reconcile
Net Loss to Net Cash
Used in Operating Activities:
Depreciation and amortization.................................. 13,784 13,784
Decrease (Increase) in:
Accounts Receivable......................................... (181,946) (249,559)
Inventory................................................... (193,665) (491,348)
Other Assets................................................ 5,253 (25,165)
Increase (Decrease) in:
Accrued Interest............................................ (655,620) 40,262
Other Liabilities........................................... 277,887 67,454
Depreciation capitalized to inventory.......................... 166,646 165,772
--------- ----------
Net Cash Provided (Used) by Operating
Activities..................................................... $(1,272,975) $ (766,615)
=========== ===========
</TABLE>
Disclosure of accounting policy:
For purposes of the statement of cash flows, the partnership 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>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Cash and equivalents of approximately $1,840,000 at March 31, 1995 are
sufficient to meet the Partnerships' working capital and liquidity requirements.
RESULTS OF OPERATIONS/VARIATIONS IN INTERIM PERIODS
The principal differences between the results of operations for the first
quarter of 1995 and that of 1994 are:
1) A significant increase in the portion of crop harvested during the quarter,
coupled with a somewhat larger crop anticipated for the current year in
comparison to the prior one. In the first quarter of 1994, the Registrant
harvested approximately 57,000 boxes (10% of the approximately 547,000
boxes harvested for the 1993-1994 crop year). In the first quarter of 1995,
the Registrant harvested approximately 120,000 boxes (16% of the 733,000
boxes estimated for the 1994-1995 crop year).
2) 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. To date, settlements for
participation agreements have not been received for the 1993-1994 crop
year.
3) Harvesting expenses increased significantly, based upon the increased
volume of fruit sold, offset in part by a decrease in cost per box from
$2.39 in 1994 to $1.85 in 1995.
4) Cost of fruit sales per box (which consist primarily of inventoried
horticultural costs) decreased, primarily as a function of the large
estimated corp for the 1994-1995 crop year.
5) Interest expense increased as a result of the increase in the prime rate.
6) Interest income increased due to the increase in cash and cash equivalents.
7) Mortgages payable are due January 31, 1996. It is the partnerships
intention to refinance the debt at this time.
The accompanying notes are an integral part of these financial statements.
<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/ Jonathan W. Wexler
Jonathan W. Wexler
Chief Financial Officer,
By: /s/ Richard J. McCready
Richard J. McCready
Vice President
DATED: May 12, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
three month period ending March 31, 1995 and is
qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000760612
<NAME> Indian River Citrus Investors, Ltd. Prtnrshp
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1.00000
<CASH> 1,466,807
<SECURITIES> 373,193
<RECEIVABLES> 281,048
<ALLOWANCES> 0
<INVENTORY> 1,962,781
<CURRENT-ASSETS> 82,444
<PP&E> 24,469,231
<DEPRECIATION> (5,562,185)
<TOTAL-ASSETS> 23,073,319
<CURRENT-LIABILITIES> 933,095
<BONDS> 21,616,860
<COMMON> 0
0
0
<OTHER-SE> 523,364
<TOTAL-LIABILITY-AND-EQUITY> 23,073,319
<SALES> 0
<TOTAL-REVENUES> 736,945
<CGS> 398,460
<TOTAL-COSTS> 385,358
<OTHER-EXPENSES> 13,784
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 644,657
<INCOME-PRETAX> (705,314)
<INCOME-TAX> 0
<INCOME-CONTINUING> (705,314)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (705,314)
<EPS-PRIMARY> (40.950)
<EPS-DILUTED> 0.000
</TABLE>
