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 fiscal quarter ended
March 31, 1997.
[ ] 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 2-64413
-----------------------
RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1
(Exact name of registrant as specified in its charter)
California 94-2645847
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Market, Steuart Street Tower
Suite 800, San Francisco, CA 94105-1301
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code (415) 974-1399
-----------------------
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 ______
<PAGE>
RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1
STATEMENTS OF REVENUES COLLECTED AND EXPENSES PAID
AND OTHER CHANGES IN CASH
<TABLE>
<CAPTION>
For the three months
ended March 31,
-------------------------------------
1997 1996
------------------------------------
<S> <C> <C>
Revenues collected:
Lease revenue received $ 691,150 $ 634,046
Interest and other income 16,022 20,197
------------------------------------
Total revenues collected 707,172 654,243
Expenses paid:
Repairs and maintenance 46,221 72,387
Property taxes (3,994 ) 6,092
Accounting and legal fees 6,213 3,323
Storage, repositioning and other 4,580 5,797
------------------------------------
Total expenses paid 53,020 87,599
------------------------------------
Excess of revenues collected
over expenses paid 654,152 566,644
------------------------------------
Other increases (decreases) in cash:
Prepaid mileage, reimbursable repairs
and other expense 9,365 (67,020 )
Management fees paid (67,553 ) (68,004 )
Receipt of proceeds from sold or destroyed cars -- 899,000
Receipt of proceeds for transfer of car ownership -- 25,000
Payments to investors for transfer of car ownership -- (24,000 )
Commission paid for sold or destroyed cars (1,080 ) (35,960 )
Commission paid for transfer of car ownership -- (1,000 )
Distributions to investors (445,597 ) (444,777 )
------------------------------------
Net other (decreases) increases in cash (504,865 ) 283,239
------------------------------------
Net increase in cash 149,287 849,883
Cash at beginning of period 1,344,981 1,581,112
------------------------------------
Cash at end of period $ 1,494,268 $ 2,430,995
====================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1
NOTES TO THE STATEMENTS OF REVENUES COLLECTED AND EXPENSES PAID
AND OTHER CHANGES IN CASH
March 31, 1997
1. Basis of Presentation
RMI Covered Hopper Railcar Management Program 79-1 (the Program) is not a legal
entity. The statements of revenues collected and expenses paid and other changes
in cash (the Statements) of the Program are presented on the cash basis of
accounting, used for reporting to investors in the Program in accordance with
the Management Agreement with PLM Investment Management, Inc. (IMI). Under the
cash basis of accounting, revenues are recognized when received, rather than
when earned, and expenses are recognized when paid, rather than when the
obligation is incurred. Accordingly, the Statements are not intended to present
financial position, or results of operations or cash flows in accordance with
generally accepted accounting principles.
2. Operations
At March 31, 1997, 470 cars, which are owned by the investors, were being
managed by IMI under the Program. With the exception of four cars, all of the
cars were covered by lease agreements. During the three months ending March 31,
1997, one car was added to the Program.
3. Equalization reserve
Under the terms of the management agreement, IMI may, at its discretion, cause
the Program to retain a certain amount of cash (the working capital reserve) to
cover future disbursements and provide for a balanced distribution of funds to
the investors each quarter. IMI has determined the working capital reserve at
March 31, 1997, to be $1,002,572 ($910,989 at December 31, 1996).
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CASH BALANCES AND RESULTS OF
OPERATIONS
Liquidity and Capital Resources
The Program's capital commitments consist of paying operating expenses, and to
the extent funds are available, making cash distributions to the investors. Cash
reserves are considered sufficient to cover all known liabilities of the
equipment pool.
Comparison of the Program's Revenues Collected, Expenses Paid and Other Changes
in Cash for the Three Months Ended March 31, 1997 and 1996
Revenues collected:
(1) Lease receipts increased to $691,150 in the first quarter of 1997 from
$634,046 in the first quarter of 1996. The increase is primarily due to the
timing of receipt of revenues and the higher average lease rates for certain
lessees during the comparable periods.
(2) Interest and other income decreased to $16,022 in the first quarter of 1997,
from $20,197 in the first quarter of 1996, due to lower interest income
resulting from lower rate of interest paid and lower average cash balances.
Expenses paid:
(1) Repairs and maintenance expense decreased to $46,221 in the first quarter of
1997, from $72,387 in the first quarter of 1996. The decrease is due to the
timing of payments of expenses during comparable periods.
(2) Property taxes decreased to a credit of $3,994 in the first quarter of 1997,
from $6,092 in the first quarter of 1996. The decrease is due to a $4,000 credit
for overpaid taxes from prior years, and the timing of payments for these taxes
during the comparable periods, as the tax rates remained constant.
(3) Accounting and legal fees increased to $6,213 in the first quarter of 1997,
from $3,323 in the first quarter of 1996 due to the increase in cost of these
professional services and the timing of payments for these expenses during the
comparable periods.
(4) Storage, repositioning and other expenses decreased to $4,580 in the first
quarter of 1997, from $5,797 in the first quarter of 1996. The decrease is
primarily due to the timing of payments of expenses during comparable periods.
Other changes in cash:
(1) Prepaid mileage, reimbursable repairs and other are composed primarily of
receipts of mileage credits from railroads which are due to lessees, net of
reimbursable repairs due from lessees. The funds increased by $9,365 in the
first quarter of 1997, as compared to a decrease by $67,020 in the first quarter
of 1996. The difference between comparable periods is due primarily to the
timing of net receipts and repayments of these funds by the Program.
(2) Management fees paid decreased slightly to $67,553 in the first quarter
1997, from $68,004 in the first quarter of 1996. The decrease is due to 29 cars
that were sold during March of 1996, offset by the higher incentive fee of
$14,070 in the first quarter of 1997 compared to $11,270 paid in the same period
of 1996.
The Program distributed $445,597 to investors in the first quarter 1997, and
$444,777 in the first quarter of 1996.
The Program's performance in the first quarter 1997 is not necessarily
indicative of future periods.
Inflation and changing prices did not materially impact the Program's revenues
collected, expenses, and other changes in cash during the reported periods.
<PAGE>
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.
RMI COVERED HOPPER RAILCAR
MANAGEMENT PROGRAM 79-1
By: PLM Investment Management, Inc.
Manager
By: /s/ Stephen M. Bess
-----------------------------
Stephen M. Bess
President
Date: May 12, 1997 By:/s/ David J. Davis
-----------------------------
David J. Davis
Vice President and
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,494,268
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 707,172
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
