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
|_| 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 0-24175
ATEL Capital Equipment Fund VII, L.P.
(Exact name of registrant as specified in its charter)
California 94-3248318
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 989-8800
Indicate by a 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 |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
(Unaudited)
ASSETS
1999 1998
---- ----
Cash and cash equivalents $ 654,938 $ 1,576,029
Accounts receivable 4,847,847 6,380,886
Other assets 160,004 170,003
Investments in leases 201,768,843 204,329,984
------------------ -----------------
Total assets $207,431,632 $212,456,902
================== =================
LIABILITIES AND PARTNERS' CAPITAL
Lines of credit $14,672,824 $11,781,707
Non-recourse debt 15,678,284 16,599,347
Other long-term debt 55,983,000 61,553,000
Accounts payable:
General Partner 240,051 377,955
Other 818,636 684,475
Accrued interest expense 990,528 805,753
Unearned operating lease income 1,559,998 943,419
------------------ -----------------
Total liabilities 89,943,321 92,745,656
Partners' capital:
General Partner (896,450) (717,165)
Limited Partners 118,384,761 120,428,411
------------------ -----------------
Total partners' capital 117,488,311 119,711,246
------------------ -----------------
Total liabilities and partners' capital $207,431,632 $212,456,902
================== =================
See accompanying notes.
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
INCOME STATEMENTS
THREE MONTH PERIODS ENDED
MARCH 31, 1999 AND 1998
(Unaudited)
<TABLE>
<CAPTION>
1999 1998
---- ----
Revenues:
Leasing activities:
<S> <C> <C>
Operating leases $ 9,015,109 $ 5,392,236
Direct financing leases 494,423 262,173
Leveraged leases 35,872 32,879
Gain on sales of assets 717,597 878
Interest 12,655 6,567
Other 3,872 723
------------------ -----------------
10,279,528 5,695,456
Expenses:
Depreciation 5,986,237 2,913,361
Interest expense 1,510,812 846,237
Administrative cost reimbursements to General Partner 78,213 247,691
Equipment and incentive management fees to General Partner 493,154 295,546
Other 356,304 145,296
Provision for losses - 56,954
Professional fees 38,381 8,751
------------------ -----------------
8,463,101 4,513,836
------------------ -----------------
Net income $ 1,816,427 $ 1,181,620
================== =================
Net income:
General Partner $ 136,232 $ 88,622
Limited Partners 1,680,195 1,092,998
------------------ -----------------
$ 1,816,427 $ 1,181,620
================== =================
Net income per Limited Partnership Unit $ 0.11 $ 0.15
Weighted average number of Units outstanding 14,996,050 7,500,393
</TABLE>
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
THREE MONTH PERIOD ENDED
MARCH 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners General
Units Amount Partner Total
<S> <C> <C> <C> <C>
Balance December 31, 1998 14,996,050 $120,428,411 $ (717,165) $119,711,246
Distributions to partners (3,723,845) (315,517) (4,039,362)
Net income 1,680,195 136,232 1,816,427
----------------- ----------------- ------------------ -----------------
Balance March 31, 1999 14,996,050 $118,384,761 $ (896,450) $117,488,311
================= ================= ================== =================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
STATEMENT OF CASH FLOWS
THREE MONTH PERIODS ENDED
MARCH 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
---- ----
Operating activities:
<S> <C> <C>
Net income $ 1,816,427 $ 1,181,620
Adjustments to reconcile net income to cash
provided by operating activities:
Leveraged lease income (35,872) (32,879)
Gain on sales of assets (717,597) (878)
Depreciation 5,986,237 2,913,361
Provision for losses - 56,954
Changes in operating assets and liabilities:
Accounts receivable 1,533,039 (1,167,512)
Other assets 9,999 -
Accounts payable, General Partner (137,904) (88,552)
Accounts payable, other 134,161 (267,595)
Accrued interest expense 184,775 59,026
Unearned lease income 616,579 94,733
------------------ -----------------
Net cash provided by operations 9,389,844 2,748,278
------------------ -----------------
Investing activities:
Purchases of equipment on operating leases (4,572,733) (11,560,028)
Purchases of equipment held for sale or lease - (441,187)
Purchases of equipment on direct financing leases (555,188) -
Reduction of net investment in direct financing leases 414,151 106,076
Proceeds from sales of assets 2,042,143 10,608
------------------ -----------------
Net cash used in investing activities (2,671,627) (11,884,531)
------------------ -----------------
Financing activities:
Borrowings under line of credit 3,172,824 -
Repayments of borrowings under line of credit (281,707) (3,135,499)
Repayments of non-recourse debt (921,063) (182,233)
Repayments of other long-term debt (5,570,000) -
Distributions to limited partners (3,723,845) (1,705,606)
Distributions to general partner (315,517) (179,860)
Capital contributions received - 16,490,640
Payment of syndication costs to General Partner - (2,162,561)
------------------ -----------------
Net cash (used in) provided by financing activities (7,639,308) 9,124,881
------------------ -----------------
Net decrease in cash and cash equivalents (921,091) (11,372)
Cash and cash equivalents at beginning of period 1,576,029 2,014,706
------------------ -----------------
Cash and cash equivalents at end of period $ 654,938 $ 2,003,334
================== =================
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 1,326,037 $ 787,211
================== =================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
1. Summary of significant accounting policies:
Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Organization and partnership matters:
ATEL Capital Equipment Fund VII, L.P. (the Fund), was formed under the laws of
the State of California on July 17 , 1996, for the purpose of acquiring
equipment to engage in equipment leasing and sales activities. Contributions in
the amount of $600 were received as of July 17, 1996, $100 of which represented
the General Partner's (ATEL Financial Corporation's) continuing interest, and
$500 of which represented the Initial Limited Partners' capital investment.
Upon the sale of the minimum amount of Units of Limited Partnership interest
(Units) of $1,200,000 and the receipt of the proceeds thereof on January 7,
1997, the Partnership commenced operations.
The Partnership does not make a provision for income taxes since all income and
losses will be allocated to the Partners for inclusion in their individual tax
returns.
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
3. Investment in leases:
The Partnership's investment in leases consists of the following:
<TABLE>
<CAPTION>
Depreciation
Balance Expense or Reclassi- Balance
December 31, Amortization fications or March 31,
1998 Additions of Leases Dispositions 1999
---- --------- --------- - ------------- ----
<S> <C> <C> <C> <C> <C>
Net investment in operating
leases $177,401,763 4,572,733 (5,983,509) $ (608,064) $175,382,923
Net investment in direct
financing leases 25,063,961 555,188 (414,151) (739,394) 24,465,604
Net investment in leveraged
leases 1,580,583 - 35,872 - 1,616,455
Assets held for sale or lease 355,633 - - 22,912 378,545
Reserve for losses (131,232) - - - (131,232)
Initial direct costs, net of
accumulated amortization 59,276 - (2,728) - 56,548
------------------ ----------------- ----------------- ------------------ -----------------
$204,329,984 $ 5,127,921 $(6,364,516) $(1,324,546) $201,768,843
================== ================= ================= ================== =================
</TABLE>
Property on operating leases consists of the following:
<TABLE>
<CAPTION>
Balance Reclassi- Balance
December 31, fications or March 31,
1998 Additions Dispositions 1999
---- --------- ------------ ----
<S> <C> <C> <C> <C>
Transportation $102,138,178 $ (417,559) $101,720,619
Manufacturing 24,391,341 $ 2,805,839 344,073 27,541,253
Mining 26,099,674 - - 26,099,674
Marine vessels 22,335,250 - - 22,335,250
Office automation 6,307,481 1,326,065 (3,649) 7,629,897
Materials handling 5,574,150 440,829 - 6,014,979
Motor vehicles 5,454,671 - - 5,454,671
Aircraft 4,991,972 - - 4,991,972
Other 4,602,749 - (1,235,019) 3,367,730
Furniture and fixtures 2,461,533 - - 2,461,533
----------------- ----------------- ------------------ -----------------
204,356,999 4,572,733 (1,312,154) 207,617,578
Less accumulated depreciation (26,955,236) (5,983,509) 704,090 (32,234,655)
----------------- ----------------- ------------------ -----------------
$177,401,763 $(1,410,776) $ (608,064) $175,382,923
================= ================= ================== =================
</TABLE>
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
3. Investment in leases (continued):
All of the property on leases was acquired in 1997, 1998 and 1999.
At March 31, 1999, the aggregate amounts of future minimum lease payments are as
follows:
Direct
Year ending Operating Financing
December 31, Leases Leases Total
1999 $ 24,885,105 $ 3,873,632 $ 28,758,737
2000 33,910,626 4,610,702 38,521,328
2001 26,673,102 4,484,828 31,157,930
2002 18,800,226 3,555,471 22,355,697
2003 10,223,359 2,252,958 12,476,317
Thereafter 12,041,962 5,404,634 17,446,596
----------------- ----------------- ------------------
$126,534,380 $ 24,182,225 $150,716,605
================= ================= ==================
4. Non-recourse debt:
Notes payable to financial institutions are due in varying monthly, quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments of lease payments and pledges of the assets which were purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
7.0% to 10.0%.
Future minimum payments of non-recourse debt are as follows:
Year ending
December 31, Principal Interest Total
1999 $ 1,865,893 $ 1,559,817 $ 3,425,710
2000 3,358,169 1,341,263 4,699,432
2001 3,900,748 978,708 4,879,456
2002 4,170,658 561,524 4,732,182
2003 1,744,858 182,192 1,927,050
Thereafter 637,958 78,582 716,540
----------------- ----------------- ------------------
$ 15,678,284 $ 4,702,086 $ 20,380,370
================= ================= ==================
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
5. Other long-term debt:
In 1998, the Partnership entered into a $65 million receivables funding program
(the Program) with a receivables financing company that issues commercial paper
rated A1 by Standard and Poors and P1 by Moody's Investor Services. Under the
Program, the receivables financing company receives a general lien against all
of the otherwise unencumbered assets of the Partnership. The Program provides
for borrowing at a variable interest rate (5.23001% at March 31, 1999). The
General Partner anticipates that the Program will allow the Partnership to avail
itself to lower cost debt than that available for individual non-recourse debt
transactions. It is the intention of the Partnership to use the Program to
finance assets leased to those credits which, in the opinion of the General
Partner, have a relatively lower potential risk of lease default than those
lessees with equipment financed with non-recourse debt. The Partnership will
continue to use its traditional sources of non-recourse secured debt financing
on a selected transaction basis as a means of mitigating credit risk.
The Program requires the General Partner to enter into various interest rate
swaps with a financial institution (also rated A1/P1) to manage interest rate
exposure associated with variable rate obligations under the Program by
effectively converting the variable rate debt to fixed rates. As of March 31,
1999, the Partnership receives or pays interest on a notional principal of
$55,983,000, based on the difference between nominal rates ranging from 5.55% to
6.22% and the variable rate under the Program. No actual borrowing or lending is
involved. The last of the swaps terminates in 2008. The differential to be paid
or received is accrued as interest rates change and is recognized currently as
an adjustment to interest expense related to the debt.
Borrowings under the Program are as follows:
Original Balance Rate on
Amount March 31, Interest Swap
Date Borrowed Borrowed 1999 Agreement
------------- -------- ---- ---------
4/1/98 $ 21,770,000 $ 16,968,000 6.22%
7/1/98 $ 25,000,000 $ 21,031,000 5.75%
10/1/98 $ 20,000,000 $ 17,984,000 5.55%
----------------- -----------------
$ 66,770,000 $ 55,983,000
================= =================
The long-term debt borrowings mature from 2004 through 2008. Future minimum
principal payments of long-term debt are as follows:
Year ending
December 31, Principal Interest Total
1999 $ 10,518,000 $ 2,251,344 $ 12,769,344
2000 14,861,000 2,222,543 17,083,543
2001 11,000,000 1,432,767 12,432,767
2002 8,716,000 861,897 9,577,897
2003 4,666,000 485,020 5,151,020
Thereafter 6,222,000 492,118 6,714,118
----------------- ----------------- ------------------
$ 55,983,000 $ 7,745,689 $ 63,728,689
================= ================= ==================
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
6. Related party transactions:
The terms of the Limited Partnership Agreement provide that the General Partner
and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Partnership.
The Limited Partnership Agreement allows for the reimbursement of costs incurred
by the General Partner in providing administrative services to the Partnership.
Administrative services provided include Partnership accounting, investor
relations, legal counsel and lease and equipment documentation. The General
Partner is not reimbursed for services where it is entitled to receive a
separate fee as compensation for such services, such as acquisition and
management of equipment. Reimbursable costs incurred by the General Partner are
allocated to the Partnership based upon actual time incurred by employees
working on Partnership business and an allocation of rent and other costs based
on utilization studies.
Substantially all employees of the General Partner record time incurred in
performing administrative services on behalf of all of the Partnerships serviced
by the General Partner. The General Partner believes that the costs reimbursed
are the lower of (i) actual costs incurred on behalf of the Partnership or (ii)
the amount the Partnership would be required to pay independent parties for
comparable administrative services in the same geographic location and are
reimbursable in accordance with the Limited Partnership Agreement.
The General Partner and/or Affiliates earned fees, commissions and
reimbursements, pursuant to the Limited Partnership Agreement as follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Incentive management fees (computed as 4% of distributions of cash from
operations, as defined in the Limited Partnership Agreement) and equipment
management fees (computed as 3.5% of gross revenues from operating leases, as
defined in the Limited Partnership Agreement plus 2% of gross revenues from full
payout leases, as defined in the Limited Partnership Agreement). $ 493,154 $ 295,546
Administrative costs reimbursed to General Partner 78,213 247,691
Selling commissions (equal to 9.5% of the selling price of the Limited Partnership
units, deducted from Limited Partners' capital) - 1,478,874
Reimbursement of other syndication costs - 802,670
------------------ -----------------
$ 571,367 $ 2,824,781
================== =================
</TABLE>
<PAGE>
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
7. Partner's capital:
As of March 31, 1998, 8,365,960 Units ($83,659,600) were issued and outstanding.
The Fund's registration statement with the Securities and Exchange Commission
became effective November 29, 1996. The Fund is authorized to issue up to
15,000,050 Units, including the 50 Units issued to the initial limited partners.
Available Cash from Operations, as defined in the Limited Partnership Agreement,
shall be distributed as follows:
First, Distributions of Cash from Operations shall be 88.5% to the Limited
Partners, 7.5% to the General Partner and 4% to the General Partner or its
affiliate designated as the recipient of the Incentive Management Fee, until the
Limited Partners have received Aggregate Distributions in an amount equal to
their Original Invested Capital, as defined, plus a 10% per annum cumulative
(compounded daily) return on their Adjusted Invested Capital, as defined in the
Limited Partnership Agreement.
Second, 85% to the Limited Partners, 7.5% to the General Partner and 7.5% to the
General Partner or its affiliate designated as the recipient of the Incentive
Management Fee.
Available Cash from Sales or Refinancing, as defined in the Limited Partnership
Agreement, shall be distributed as follows:
First, Distributions of Sales or Refinancings shall be 92.5% to the Limited
Partners and 7.5% to the General Partner, until the Limited Partners have
received Aggregate Distributions in an amount equal to their Original Invested
Capital, as defined, plus a 10% per annum cumulative (compounded daily) return
on their Adjusted Invested Capital.
Second, 85% to the Limited Partners, 7.5% to the General Partner and 7.5% to the
General Partner or its affiliate designated as the recipient of the Incentive
Management Fee.
8. Line of credit:
The Partnership participates with the General Partner and certain of its
Affiliates in a $90,000,000 revolving credit agreement with a group of financial
institutions which expires on January 31, 2000. The agreement includes an
acquisition facility and a warehouse facility which are used to provide bridge
financing for assets on leases. Draws on the acquisition facility by any
individual borrower are secured only by that borrower's assets, including
equipment and related leases. Borrowings on the warehouse facility are recourse
jointly to certain of the Affiliates, the Partnership and the General Partner.
At March 31, 1999, the Partnership had $14,672,824 of borrowings under the line
of credit.
The credit agreement includes certain financial covenants applicable to each
borrower. The Partnership was in compliance with its covenants as of March 31,
1999.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Capital Resources and Liquidity
During the first quarter of 1999, the Partnership's primary activity was
engaging in equipment leasing activities. During the first quarter of 1998, the
Partnership's primary activities were raising funds through its offering of
Limited Partnership Units (Units) and engaging in equipment leasing activities.
In 1999, the Partnership's primary source of liquidity was operating lease
rents. The liquidity of the Partnership will vary in the future, increasing to
the extent cash flows from leases exceed expenses, and decreasing as lease
assets are acquired, as distributions are made to the limited partners and to
the extent expenses exceed cash flows from leases.
As another source of liquidity, the Partnership has contractual obligations with
a diversified group of lessees for fixed lease terms at fixed rental amounts. As
the initial lease terms expire the Partnership will re-lease or sell the
equipment. The future liquidity beyond the contractual minimum rentals will
depend on the General Partner's success in re-leasing or selling the equipment
as it comes off lease.
The Partnership participates with the General Partner and certain of its
affiliates in a $90,000,000 revolving line of credit with a financial
institution. The line of credit expires on January 31, 2000.
The Partnership anticipates reinvesting a portion of lease payments from assets
owned in new leasing transactions. Such reinvestment will occur only after the
payment of all obligations, including debt service (both principal and
interest), the payment of management and acquisition fees to the General Partner
and providing for cash distributions to the Limited Partners.
The Partnership currently has available adequate reserves to meet contingencies,
but in the event those reserves were found to be inadequate, the Partnership
would likely be in a position to borrow against its current portfolio to meet
such requirements. The General Partner envisions no such requirements for
operating purposes.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. Such commitments totaled approximately
$8,243,000 as of March 31, 1999.
If inflation in the general economy becomes significant, it may affect the
Partnership inasmuch as the residual (resale) values and rates on re-leases of
the Partnership's leased assets may increase as the costs of similar assets
increase. However, the Partnership's revenues from existing leases would not
increase, as such rates are generally fixed for the terms of the leases without
adjustment for inflation.
If interest rates increase significantly, the lease rates that the Partnership
can obtain on future leases will be expected to increase as the cost of capital
is a significant factor in the pricing of lease financing. Leases already in
place, for the most part, would not be affected by changes in interest rates.
Cash Flows
During the first quarters of 1998, the Partnership's primary sources of
liquidity were the proceeds of its offering of Units. In 1999, the primary
source of liquidity was rents from operating leases. Cash from operating
activities was almost entirely from operating lease rents in both years.
<PAGE>
In the first quarter of 1999 and 1998, the only sources of cash from investing
activities was proceeds from sales of assets and rents from direct financing
leases. In 1999, proceeds from sales of lease assets increased significantly
compared to 1998. Proceeds from such sales are not expected to be consistent
from one year to another. Neither was significant compared cash in 1998. The
primary investing use of cash was the purchase of assets on operating leases.
In 1999, the only source of cash from investing activities was borrowings under
the line of credit. In 1998, cash from financing sources consisted of cash
received for subscriptions for Units. Distributions to Partners has increased as
the offering has continued and the number of outstanding Units has increased
compared to 1998.
Results of operations
Operations resulted in a net income of $1,816,427 in 1999 compared to $1,181,620
in the same period in 1998. The Partnership's primary source of revenues is from
operating leases. This is expected to remain true in future periods.
Depreciation expense is the single largest expense of the Partnership.
Depreciation is related to operating lease assets and thus, to operating lease
revenues. Operating lease revenues and depreciation expense have increased over
the last year as a result of asset acquisitions.
Gains recognized on sales of assets have increased by $716,719 compared to 1998.
Such gains are not expected to be consistent from one period to another.
Equipment management fees are based on the Partnership's rental revenues and
have increased in relation to increases in the Partnership's revenues from
leases. Incentive management fees are based on the levels of distributions to
limited partners. Such distributions have increased as a result of the increase
in the number of Units outstanding compared to the prior year. The number of
Units outstanding increase as a result of the continuing offering of such Units.
The offering ended in November 1998.
Interest expense in the first quarter of 1998 relates primarily to the
borrowings under the line of credit. Total borrowings have increased from
$45,200,102 at March 31, 1998 to $86,334,108 at March 31, 1999. This increase
has caused the increase of $664,575 in interest expense compared to 1998.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Inapplicable.
Item 2. Changes In Securities.
Inapplicable.
Item 3. Defaults Upon Senior Securities.
Inapplicable.
Item 4. Submission Of Matters To A Vote Of Security Holders.
Inapplicable.
Item 5. Other Information.
Item 6. Exhibits And Reports On Form 8-K.
(a)Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, March 31, 1999 and December 31,
1998.
Income statements for the three month periods ended
March 31, 1999 and 1998.
Statement of changes in partners' capital for the
three months ended March 31, 1999.
Statements of cash flows for the three month periods
ended March 31, 1999 and 1998.
Notes to the Financial Statements
2. Financial Statement Schedules
All other schedules for which provision is made in
the applicable accounting regulations of the
Securities and Exchange Commission are not required
under the related instructions or are inapplicable,
and therefore have been omitted.
(b) Report on Form 8-K
None
<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:
May 14, 1999
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
(Registrant)
By: ATEL Financial Corporation
General Partner of Registrant
By: /s/ A. J. Batt
-----------------------------------
A. J. Batt
President and Chief Executive Officer
of General Partner
By: /s/ Dean L. Cash
-----------------------------------
Dean L. Cash
Executive Vice President
of General Partner
By: /s/ Paritosh K. Choksi
-------------------------------------
Paritosh K. Choksi
Principal financial officer
of registrant
By: /s/ Donald E. Carpenter
-------------------------------------
Donald E. Carpenter
Principal accounting
officer of registrant
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<CASH> 654938
<SECURITIES> 0
<RECEIVABLES> 4847847
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 207431632
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 117488311
<TOTAL-LIABILITY-AND-EQUITY> 207431632
<SALES> 0
<TOTAL-REVENUES> 10279528
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6952289
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1510812
<INCOME-PRETAX> 1816427
<INCOME-TAX> 0
<INCOME-CONTINUING> 1816427
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1816427
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
