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 September 29, 1995
OR
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 0-11458
LIBERTY EQUIPMENT INVESTORS-1983
(Exact name of Registrant as specified in its charter)
New York 13-3163119
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
World Financial Center - South Tower, N.Y., N.Y. 10080-6114
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(212) 236-6472
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 filing
requirements for the past 90 days. Yes X No
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Liberty Equipment Investors-1983
Table of Contents
Balance Sheets as of September 29, 1995 (Unaudited)
and December 30, 1994 (Unaudited)
Statements of Operations for the Thirteen and Thirty-
Nine Week Periods Ended September 29, 1995
(Unaudited) and September 30, 1994 (Unaudited)
Statements of Cash Flows for the Thirty-Nine Week
Periods Ended September 29, 1995 (Unaudited) and
September 30, 1994 (Unaudited)
Notes to Financial Statements for the Thirty-Nine
Week Period Ended September 29, 1995 (Unaudited)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
BALANCE SHEETS
AS OF SEPTEMBER 29, 1995 (UNAUDITED) AND DECEMBER 30, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
September 29, December 30,
NOTES 1995 1994
<S> <C> <C> <C>
ASSETS:
Cash and cash equivalents $ 913,296 $ 1,434,993
Property under management
contract and held for lease
(less accumulated
depreciation of $4,464,357
as of December 30, 1994) 3 -- 236,925
Investment in partnership -
TDEC 3,290,195 3,290,195
Accounts receivable (net of
allowance for doubtful
accounts of $350,000 as of
September 29, 1995 and
December 30, 1994) and other
assets 138,526 151,687
TOTAL ASSETS $ 4,342,017 $ 5,113,800
LIABILITIES AND PARTNERS'
CAPITAL:
Liabilities:
Note payable - TDEC $ 3,419,078 $ 3,419,078
Accounts payable to
affiliate and accrued
liabilities 286,180 278,934
Total Liabilities 3,705,258 3,698,012
PARTNERS' CAPITAL: 1
General Partner:
Capital contributions, net
of offering expenses and
return of capital 285,007 290,771
Cash distributions (116,824) (115,316)
Cumulative loss (161,814) (161,296)
6,369 14,159
</TABLE>
(Continued on the following page.)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
BALANCE SHEETS
AS OF SEPTEMBER 29, 1995 (UNAUDITED) AND DECEMBER 30, 1994
(UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
September 29, December 30,
NOTES 1995 1994
<S> <C> <C> <C>
Limited Partners:
Capital contributions,
net of offering expenses
and return of capital
(40,000.2 Units of
Limited Partnership
Interest) 28,215,407 28,786,131
Cash distributions (11,565,367) (11,416,087)
Cumulative loss (16,019,650) (15,968,415)
630,390 1,401,629
Total Partners' Capital 636,759 1,415,788
TOTAL LIABILITIES AND
PARTNERS' CAPITAL $ 4,342,017 $ 5,113,800
</TABLE>
See Notes to Financial Statements (Unaudited).
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF OPERATIONS FOR THE THIRTEEN
AND THIRTY-NINE WEEK PERIODS ENDED SEPTEMBER 29, 1995 (UNAUDITED)
AND SEPTEMBER 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
Thirteen Weeks Thirty-Nine Weeks
September September September September
29, 30, 29, 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
REVENUES:
Rental and other
operating income
$ -- $ 81,817 $ 59,009 $ 265,672
Interest income 15,460 18,722 54,466 54,626
Gain on
disposals of
leased assets -- 11,634 7,987 23,924
Total Revenues 15,460 112,173 121,462 344,222
EXPENSES:
Depreciation and
amortization 1,928 7,555 8,309 35,230
Property
operating
expenses 12,857 1,813 20,439 24,882
Other operating
expenses 50,967 42,569 144,467 153,438
Total Expenses 65,752 51,937 173,215 213,550
Net (Loss)
Income $ (50,292) $ 60,236 $ (51,753) $ 130,672
</TABLE>
(Continued on the following page.)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF OPERATIONS FOR THE THIRTEEN
AND THIRTY-NINE WEEK PERIODS ENDED SEPTEMBER 29, 1995 (UNAUDITED)
AND SEPTEMBER 30, 1994 (UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
Thirteen Weeks Thirty-Nine Weeks
September September September September
29, 30, 29, 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net (Loss)
Income allocated
to General
Partner $ (503) $ 602 $ (518) $ 1,307
Net (Loss)
Income allocated
to Limited
Partners $ (49,789) $ 59,634 $ (51,235) $ 129,365
Net (Loss)
Income Per Unit
of Limited
Partnership
Interest
(40,000.2 Units
of Limited
Partnership
Interest $ (1.24) $ 1.49 $ (1.28) $ 3.23
See Notes to Financial Statements (Unaudited).
</TABLE>
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF CASH FLOWS FOR THE
THIRTY-NINE WEEK PERIODS ENDED SEPTEMBER 29, 1995 (UNAUDITED)
AND SEPTEMBER 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
September 29, September 30,
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities:
Net (loss) income $ (51,753) $ 130,672
Adjustments to reconcile net
(loss) income to net cash (used
in) provided by operating
activities:
Depreciation and amortization 8,309 35,230
Gain on disposals of leased assets (7,987) (23,924)
Increase in accounts payable to
affiliate and accrued liabilities 7,246 57,221
Decrease/(increase) in accounts
receivable and other assets 13,160 (48,798)
Net cash (used in) provided by
operating activities (31,025) 150,401
Cash flows from investing activities:
Proceeds from disposal of
equipment 236,604 536,127
Net cash provided by investing
activities 236,604 536,127
(Continued on the following page.)
</TABLE>
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF CASH FLOWS FOR THE
THIRTY-NINE WEEK PERIODS ENDED SEPTEMBER 29, 1995 (UNAUDITED)
AND SEPTEMBER 30, 1994 (UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
September 29, September 30,
1995 1994
<S> <C> <C>
Cash flows from financing activities:
Cash distributed to:
Limited partners (149,280) (568,147)
General partner (1,508) (5,738)
Capital returned to:
Limited partners (570,724) (1,471,863)
General partner (5,764) (14,868)
Net cash used in financing
activities (727,276) (2,060,616)
Net decrease in cash and cash
equivalents (521,697) (1,374,088)
Cash and Cash Equivalents -
Beginning of period 1,434,993 2,977,607
Cash and Cash Equivalents - End of
period $ 913,296 $ 1,603,519
</TABLE>
See Notes to Financial Statements (Unaudited).
LIBERTY EQUIPMENT INVESTORS-1983
NOTES TO FINANCIAL STATEMENTS FOR THE
THIRTY-NINE WEEK PERIOD ENDED SEPTEMBER 29, 1995
(UNAUDITED)
NOTE 1.Organization
Liberty Equipment Investors - 1983 (the "Partnership") was formed
and the Certificate of Limited Partnership was filed under the
Uniform Limited Partnership Act of the State of New York on March
30, 1983. The Partnership subsequently elected to be governed by
the New York Revised Limited Partnership Act.
Under the terms of the Agreement of Limited Partnership (the
"Partnership Agreement"), on October 25, 1983, Maiden Lane
Partners Inc., the general partner (the "General Partner"),
admitted additional limited partners to the Partnership with
capital contributions amounting to $40,000,000. Prior to that
date, the only capital transactions were contributions of $5,000
by the General Partner and $200 by the initial limited partners.
As provided in the Partnership Agreement, the General Partner
made an additional cash contribution of $399,045, which, together
with its previous cash contribution, represented 1% of the total
Partnership capital contributions.
The purpose of the Partnership is to operate and lease equipment
and direct and indirect interests therein.
Pursuant to the terms of the Partnership Agreement, the General
Partner is liable for all general obligations of the Partnership
to the extent not paid by the Partnership. The limited partners
are not liable for the obligations of the Partnership beyond the
amount of their contributed capital.
In the opinion of the General Partner, the financial statements
include all adjustments necessary to reflect fairly the results
of the interim periods presented. All adjustments are of a
normal recurring nature.
NOTE 2.Additional Information
Additional information, including the audited year end 1994
Financial Statements and the Summary of Significant Accounting
Policies, is included in the Partnership's Annual Report on Form
10-K for the year ended December 30, 1994 on file with the
Securities and Exchange Commission.
NOTE 3.Property
In the first half of 1995 the Partnership sold its remaining five
intercity buses for an aggregate amount of $236,604, net of sales
commissions.
On June 30, 1995, the operations of the First Hill Diagnostic
Imaging Center (the "Center") ceased. In addition, the occupancy
lease for the Center, of which the Partnership was lessee,
expired on August 31, 1995. Termination of the lease has also
terminated the Center's joint venture agreement. Concurrent with
the lease termination, the Partnership sold, transferred and
assigned all of its right, title and interest in the
Partnership's equipment related to the Center for $1.00 to an
affiliate of a joint venture partner but not an affiliate of the
General Partner. The Partnership had an obligation to remove all
its equipment and restore the leased property to its original
state before the end of the lease term. In connection with the
sale transaction referred to above, the Partnership was relieved
of its obligation to restore the leased property. Additionally,
concurrent with this transaction, the landlord released the
Partnership from all future obligations related to the occupancy
lease. The Partnership's equipment related to the center was
fully depreciated, accordingly, no gain or loss was recorded upon
the disposal of such equipment.
Registrant is working with the venture partners and the facility
manager on the liquidation of the remaining net assets of the
venture (i.e. cash and accounts receivable net of third party
accounts payable).
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At September 29, 1995, Registrant had $913,296 in cash and cash
equivalents which included $865,114 invested in commercial paper.
The balance is maintained in a demand deposit cash account.
Included in these funds are reserves for working capital,
operating requirements and cash distributions to the Partners.
Approximately $242,000 will be distributed to Partners in the
fourth quarter of 1995.
Registrant generated positive cash flow in the thirty-nine week
period of 1995 from its medical imaging center investment and the
sale of five buses. These generated funds were utilized, together
with partnership reserves, to provide for distributions to
Partners.
During the first half of 1995 Registrant sold its remaining five
buses for an aggregate amount of $236,604, net of sales
commissions. Such buses were off-lease and held for sale since
the end of the second quarter of 1994.
The First Hill Diagnostic Imaging Center (the "Center") ceased
operations on June 30, 1995. In addition, the occupancy lease
for the Center, of which Registrant was lessee, expired on August
31, 1995. Termination of the lease has also terminated the
Center's joint venture agreement. Concurrent with the lease
termination, Registrant sold, transferred and assigned all of its
right, title and interest in Registrant's equipment related to
the Center for $1.00 to an affiliate of a joint venture partner
but not an affiliate of the General Partner. Registrant had an
obligation to remove all its equipment and restore the leased
property to its original state before the end of the lease term.
In connection with the sale transaction referred to above,
Registrant was relieved of its obligation to restore the leased
property. Additionally, concurrent with this transaction, the
landlord released Registrant from all future obligations related
to the occupancy lease.
Registrant is working with the venture partners and the facility
manager on the liquidation of the remaining net assets of the
venture (i.e. cash and accounts receivable net of third party
accounts payable).
Registrant is focusing on selling or otherwise disposing of its
interest in TDEC. Registrant seeks to complete this transaction
in an orderly manner with estimated dissolution of Registrant
occurring, depending upon a number of presently unknown
circumstances, by the end of 1995.
It is currently estimated that Registrant's 1995 cash flow
realized from liquidating its remaining assets, if any, together
with working capital reserves, will provide Registrant with
adequate funds to satisfy all of its obligations and provide for
additional distributions to Partners.
Results Of Operations
Overall Results
For the thirteen week periods ended September 29, 1995 and
September 30, 1994:
Registrant had a net loss in the thirteen week period ended
September 29, 1995 compared to net income for the same period in
1994 primarily due to lower total revenues in the 1995 third
quarter.
Total revenues decreased in the thirteen week period ended
September 29, 1995 when compared to the same period in 1994.
Registrant recognized no revenue in the 1995 thirteen week period
from the medical imaging center as a result of its closing on
June 30, 1995 compared to approximately $82,000 of revenue
recognized in the same period of 1994.
Total expenses increased in the thirteen week period ended
September 29, 1995 compared to the same period in 1994.
Registrant incurred higher professional fees and higher property
operating expenses during the 1995 period due to the closing of
the medical imaging center and ongoing liquidation of the
venture. These expense increases were offset by depreciation and
amortization expense which decreased as a result of the sales of
buses in the intervening period.
For the thirty-nine week periods ended September 29, 1995 and
September 30, 1994:
Registrant experienced a net loss for the thirty-nine week period
ended September 29, 1995 compared to net income for the same
period in 1994 due to lower total revenues partially offset by
lower total expenses during the thirty-nine week period of 1995.
Total revenues decreased in the thirty-nine week period of 1995
when compared to the same period in 1994 primarily due to: (1) no
bus revenue in the 1995 period compared to approximately $38,000
in the same period of 1994 since Registrant's buses were off-
lease during the 1995 period prior to their sale, and (2)
Registrant's medical imaging facility, which generated revenues
of approximately $59,000 and $227,000 in the 1995 and 1994 thirty-
nine week periods, respectively. The decrease in medical imaging
facility revenue to Registrant reflects the closing of the
facility on June 30, 1995 and also the fact that the joint
venture reserved all funds generated in the second quarter of
1995 for obligations related to closing the facility and
liquidating the joint venture.
Total expenses decreased in the thirty-nine week period ended
September 29, 1995 compared to the same period in 1994 reflecting
lower depreciation and amortization expense and lower property
operating expenses in the 1995 period as a result of the sales of
buses in the intervening period. Property operating expenses
declined because all buses were off-lease during the 1995 period
prior to their sale.
Results By Segment
For the thirteen week periods ended September 29, 1995 and
September 30, 1994:
Equipment Leasing:
Registrant's equipment leasing segment generated no operating
revenue in both the 1995 and 1994 third quarters, reflecting the
fact that Registrant's buses had been sold before the 1995 period
and were off-lease during the 1994 period.
Registrant's equipment leasing segment incurred no property
operating expenses in the 1995 third quarter compared to
approximately $1,800 in the 1994 third quarter. Additionally,
depreciation and amortization expense was approximately $2,000 in
the thirteen week period ended September 29, 1995 compared to
approximately $8,000 in same period of 1994 due primarily to the
sales of Registrant's remaining buses in the intervening period.
Medical Imaging:
Registrant's medical imaging segment, which consists of equipment
and leasehold and joint venture interests related to a diagnostic
imaging facility, generated no revenue to Registrant in the 1995
third quarter compared to approximately $82,000 in the 1994 third
quarter reflecting the fact that the joint venture ceased
operations on June 30, 1995. The medical imaging segment
incurred approximately $13,000 in property operating expenses in
the 1995 third quarter relating to Registrant's ongoing
liquidation of the venture.
For the thirty-nine week periods ended September 29, 1995 and
September 30, 1994:
Equipment Leasing:
Registrant's equipment leasing segment generated no operating
revenue in the thirty-nine week period of 1995 compared to
approximately $38,000 in the same period in 1994. This decrease
reflects the fact that Registrant's buses were off-lease during
the 1995 period.
Registrant's equipment leasing segment incurred approximately
$7,000 in property operating expenses in the thirty-nine week
period of 1995 compared to approximately $25,000 in the thirty-
nine week period of 1994 due to the fact that all of Registrant's
remaining buses were off-lease in 1995, prior to their sale.
Additionally, depreciation and amortization expense was
approximately $8,000 in 1995 compared to approximately $35,000 in
1994 due primarily to the sales of remaining buses in the
intervening period.
Medical Imaging:
Registrant's medical imaging segment generated revenue of
approximately $59,000 in the thirty-nine week period of 1995
compared to approximately $227,000 in the same period in 1994.
The decrease was primarily due to the fact that the joint venture
ceased operations on June 30, 1995 as well as the fact that the
joint venture reserved all funds generated in the second quarter
of 1995 for obligations relating to closing the facility and
liquidating the joint venture. The medical imaging segment
incurred approximately $13,000 in property operating expenses in
the 1995 third quarter relating to Registrant's ongoing
liquidation of the venture.
Inflation
The low level of inflation during the thirty-nine week period of
1995 had no significant effect on Registrant's operations.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
A). Exhibits
Exhibit # Description Page Number
27. Financial Data Schedule
B). Reports on Form 8-K
During the period covered by this report Registrant
filed with the Securities and Exchange Commission a
Current Report on Form 8-K dated August 31, 1995. This
Current Report contained details regarding the
disposition of the First Hill Diagnostic Imaging
Center.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
LIBERTY EQUIPMENT INVESTORS-1983
By: Maiden Lane Partners Inc.
General Partner
Dated: November 9, 1995 /s/ Robert F. Aufenanger
Robert F. Aufenanger
Director and President
Chief Executive Officer
Dated: November 9, 1995 /s/ Diane T. Herte
Diane T. Herte
Treasurer
Chief Accounting Officer
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial
information extracted from the third quarter of 1995 Form
10Q Balance Sheets and Statements of Operations and is
qualified in its entirety by reference to such financial
statements.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-29-1995
<PERIOD-END> SEP-29-1995
<CASH> 48,182
<SECURITIES> 865,114
<RECEIVABLES> 138,526
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,342,017
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 636,759
<TOTAL-LIABILITY-AND-EQUITY> 4,342,017
<SALES> 0
<TOTAL-REVENUES> 121,462
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 173,215
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (51,753)
<INCOME-TAX> 0
<INCOME-CONTINUING> (51,753)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (51,753)
<EPS-PRIMARY> (1.28)
<EPS-DILUTED> 0
</TABLE>
