<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended: March 31, 1998
or
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number: 0-26932
THE MILLBURN WORLD RESOURCE TRUST
(Exact name of registrant as specified in its charter)
Delaware 06-6415-583
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o MILLBURN RIDGEFIELD CORPORATION
411 West Putnam Avenue
Greenwich, Connecticut 06830
(Address of principal executive offices)
Registrant's telephone number, including area code: (203) 625-7554
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant Units of Beneficial Interest
to Section 12(g) of the Act: (Title of Class)
Indicate by check mark whether the registrant (1) 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 [ ]
Aggregate market value of the voting and non-voting common equity held by
non-affiliates: $73,284,881
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN WORLD RESOURCE TRUST
Statements of Financial Condition (UNAUDITED)
<TABLE>
<CAPTION>
31-Mar-98 31-Dec-97
Assets: ------------- -------------
<S> <C> <C>
Investment in U.S. Treasury obligations
- at value (amortized cost $63,340,711
at March 31, 1998) 63,340,711 57,499,754
Money market mutual funds 7,496,561 9,944,556
Options owned, at market value (cost
$513,666 at March 31, 1998) 346,861 559,110
Unrealized appreciation on open contracts 2,054,299 4,753,326
Cash 2,633,884 2,105,808
------------- -------------
Total Assets $ 75,872,316 $ 74,862,554
============= =============
Liabilities & Unitholders' Capital:
Unrealized depreciation on
open currency contracts 682,857 -
Due to Managing Owner - -
Accounts payable and accrued expenses 79,724 73,925
Redemptions payable to unit holders, net 602,239 773,980
Accrued brokerage commissions 430,968 443,746
------------- -------------
Total Liabilities 1,795,788 1,291,651
Trust Capital:
Managing Owner interest 791,647 776,209
Unitholders interest (Units of Beneficial
Interest outstanding - 61,930.240 at
March 31, 1998) 73,284,881 72,794,694
------------- -------------
Total Trust Capital 74,076,528 73,570,903
------------- -------------
Total Liabilities and Trust Capital $ 75,872,316 $ 74,862,554
============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
Statements of Operations
For the three months ended March 31, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed Contracts 4,522,189 6,668,046
Change in Unrealized Gain(Loss)
on Open Contracts (3,711,743) (1,127,329)
Interest Income 992,786 760,215
Foreign Exchange Gain(Loss) 16,155 (4,432)
------------ ------------
$ 1,819,387 $ 6,296,500
Expenses:
Brokerage Commissions 1,619,704 1,423,091
17.5% Profit Share (Accrued) - 695,667
Administrative 59,404 84,123
Organizational and Offering Expenses - 75,000
------------ ------------
$ 1,679,108 $ 2,277,881
============ ============
Net Income(Loss) $ 140,279 $ 4,018,619
Net Income(Loss) allocated to
Managing Owner $ 15,438 $ 61,356
Net Income(Loss) allocated to
Unitholders $ 124,841 $ 3,957,263
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 0.92 $ 79.95
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST
Statements of Trust Capital
For the three months ended March 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Unit Managing
Holders Owner Total
------------ ------------ ------------
<S> <C> <C> <C>
Trust Equity at December 31, 1997
(61,563.868 Units) 72,794,694 776,209 73,570,903
Addition of 2,282.313 Units 2,671,465 - 2,671,465
Redemption of 1,915.941 Units (2,306,119) - (2,306,119)
Net Gain(Loss) in Trust Equity 124,841 15,438 140,279
------------ ------------ ------------
Trust Equity at March 31, 1998 73,284,881 791,647 74,076,528
(61,930.240 Units) ============ ============ ============
Redemption Value per Unit
at March 31, 1998 1,183.35
============
</TABLE>
Statements of Cash Flows
For the three months ended March 31, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) 140,279 4,018,619
Adjustments to reconcile Net Income
(Loss) to Net Cash Flows from
Operating Activities:
Decrease(Increase) in Equity in
Futures and Forward Trading Accounts (2,246,824) (12,258,455)
Increase(Decrease) in Accrued Expenses (6,979) 690,596
------------ ------------
Net Cash Flows from Operating Activities (2,113,524) (7,549,240)
Cash Flows from Financing Activities:
Subscription of Unitholder and Managing
Owner Units and Unit Equivalents 193,605 4,281,548
------------ ------------
Net Change in Cash (1,919,919) (3,267,692)
Cash - Beginning of Year 12,050,364 8,302,592
------------ ------------
Cash - End of Period 10,130,445 5,034,900
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN WORLD RESOURCE TRUST NOTES TO FORM 10-Q FINANCIAL STATEMENTS
These interim consolidated financial statements do not include all the
disclosures contained in the annual financial statements. These interim
statements have been prepared by management without audit by Independent
Public Accountants. The consolidated statements of financial condition has
been derived from the audited financial statements as of December 31, 1997.
The consolidated results of operation as displayed, should not be considered
indicative of results to be expected for the entire year.
Management discussion and analysis of the consolidated financial statements
for the three months ended March 31, 1998:
<TABLE>
<CAPTION>
31-Mar-98 31-Dec-97
------------- -------------
<S> <C> <C>
Ending Equity $ 74,076,528 $ 73,570,903
</TABLE>
The Trust's net assets increased 0.69% in the first quarter of 1998. This is
the net result of subscriptions, redemptions, and net profit of 0.08% for the
quarter.
Trading conditions deteriorated during the quarter. Hence, January profits
were almost entirely offset by subsequent losses in February and March.
Energy trading was very profitable for the quarter largely because declining
energy prices benefited short positions in crude oil and heating oil. These
gains were offset, however, by losses registered in trading stock index
futures and soft commodities, especially cotton. Declining interest rates
produced profits from long interest rate futures positions in January and
February, but produced gains in March due primarily to the weakness of the
yen vis-a-vis the U.S. dollar, Canadian dollar, and German mark.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, in the City of New York
and State of New York on the 6th day of May, 1998.
THE MILLBURN WORLD RESOURCE TRUST
By: Millburn Ridgefield Corporation,
Managing Owner
By /s/ Tod A. Tanis May 6, 1998
Tod A. Tanis
Vice-President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
STATEMENTS OF FINANCIAL CONDITION, OPERATIONS, AND CHANGES IN TRUST
CAPITAL AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 10,130,445
<SECURITIES> 62,657,854
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 75,872,316
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 75,872,316
<CURRENT-LIABILITIES> 1,795,788
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 74,076,528
<TOTAL-LIABILITY-AND-EQUITY> 75,872,316
<SALES> 0
<TOTAL-REVENUES> 1,819,387
<CGS> 0
<TOTAL-COSTS> 1,619,704
<OTHER-EXPENSES> 59,404
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 140,279
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 140,279
<EPS-PRIMARY> 0.92
<EPS-DILUTED> 0.92
</TABLE>
