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 June 30, 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 June 30, 1995 (Unaudited) and
December 30, 1994 (Unaudited)
Statements of Operations for the Thirteen and Twenty-
Six Week Periods Ended June 30, 1995 (Unaudited) and
July 1, 1994 (Unaudited)
Statements of Cash Flows for the Twenty-Six Week
Periods Ended June 30, 1995 (Unaudited) and
July 1, 1994 (Unaudited)
Notes to Financial Statements for the Twenty-Six Week
Period Ended June 30, 1995 (Unaudited)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
BALANCE SHEETS
AS OF JUNE 30, 1995 (UNAUDITED) AND DECEMBER 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 30,
NOTES 1995 1994
<S> <C> <C> <C>
ASSETS:
Cash and cash equivalents
$ 1,183,931 $ 1,434,993
Property under management
contract and held for
lease (less accumulated
depreciation of
$3,876,733 and
$4,464,357, respectively)
3 1,927 236,925
Investment in partnership -
TDEC 3,290,195 3,290,195
Accounts receivable (net of
allowance for doubtful
accounts of $350,000 in
1995 and 1994) and other
assets 155,180 151,687
TOTAL ASSETS $ 4,631,233 $ 5,113,800
LIABILITIES AND PARTNERS'
CAPITAL:
Liabilities:
Note payable - TDEC $ 3,419,078 $ 3,419,078
Accounts payable to
affiliate and accrued
liabilities 282,680 278,934
Total Liabilities 3,701,758 3,698,012
PARTNERS' CAPITAL: 1
General Partner:
Capital contributions,
net of offering expenses
and return of capital
287,431 290,771
Cash distributions (116,824) (115,316)
Cumulative loss (161,311) (161,296)
9,296 14,159
</TABLE>
(Continued on the following page)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
BALANCE SHEETS
AS OF JUNE 30, 1995 (UNAUDITED) AND DECEMBER 30, 1994 (UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
June 30, 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) 28,455,407 28,786,131
Cash distributions (11,565,367) (11,416,087)
Cumulative loss (15,969,861) (15,968,415)
920,179 1,401,629
Total Partners' Capital 929,475 1,415,788
TOTAL LIABILITIES AND
PARTNERS' CAPITAL $ 4,631,233 $ 5,113,800
</TABLE>
See Notes to Financial Statements (Unaudited).
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF OPERATIONS FOR THE THIRTEEN
AND TWENTY-SIX WEEK PERIODS ENDED JUNE 30, 1995 (UNAUDITED)
AND JULY 1, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
Thirteen Weeks Twenty-Six Weeks
June 30, July 1, June 30, July 1,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
REVENUES:
Rental and other
operating income
$ -- $ 104,091 $ 59,009 $ 183,855
Interest income 19,210 15,335 39,006 35,904
Gain on
disposals of
leased assets 9,815 6,618 7,987 12,290
Total Revenues 29,025 126,044 106,002 232,049
EXPENSES:
Depreciation and
amortization
508 11,908 6,381 27,675
Property
operating
expenses 7,582 3,734 7,582 23,069
Other operating
expenses 51,909 40,109 93,500 110,869
Total Expenses 59,999 55,751 107,463 161,613
Net (Loss)
Income $ (30,974 $ 70,293 $ (1,461) $ 70,436
)
</TABLE>
(Continued on the following page)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF OPERATIONS FOR THE THIRTEEN
AND TWENTY-SIX WEEK PERIODS ENDED JUNE 30, 1995 (UNAUDITED)
AND JULY 1, 1994 (UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
Thirteen Weeks Twenty-Six Weeks
June 30, July 1, June 30, July 1,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net (Loss)
Income allocated
to General
Partner $ (310) $ 703 $ (15) $ 704
Net (Loss)
Income allocated
to Limited
Partners
$(30,664) $ 69,590 $ (1,446) $ 69,732
Net (Loss)
Income Per Unit
of Limited
Partnership
Interest
(40,000.2 Units
of Limited
Partnership
Interest $ (0.77) $ 1.74 $ (0.04) $ 1.74
See Notes to Financial Statements (Unaudited).
</TABLE>
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF CASH FLOWS FOR THE
TWENTY-SIX WEEK PERIODS ENDED JUNE 30, 1995 (UNAUDITED)
AND JULY 1, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
June 30, July 1,
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities:
Net (loss) income $ (1,461) $ 70,436
Adjustments to reconcile net
(loss) income to net cash (used
in) provided by operating
activities:
Depreciation and amortization 6,381 27,675
Gain on disposals of leased assets
(7,987) (12,290)
Increase/Decrease in:
Accounts payable to affiliate and
accrued liabilities 3,746 25,719
Accounts receivable and other
assets (3,493) 19,782
Net cash (used in) provided by
operating activities (2,814) 131,322
Cash flows from investing activities:
Proceeds from disposal of
equipment 236,604 348,563
Net cash provided by investing
activities 236,604 348,563
(Continued on the following page)
</TABLE>
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF CASH FLOWS FOR THE
TWENTY-SIX WEEK PERIODS ENDED JUNE 30, 1995 (UNAUDITED)
AND JULY 1, 1994 (UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
June 30, July 1,
1995 1994
<S> <C> <C>
Cash flows from financing activities:
Cash distributed to:
Limited partners (149,280) (532,247)
General partner (1,508) (5,376)
Capital returned to:
Limited partners (330,724) (1,267,762)
General partner (3,340) (12,806)
Net cash used in financing
activities (484,852) (1,818,191)
Net decrease in cash and cash
equivalents (251,062) (1,338,306)
Cash and Cash Equivalents -
Beginning of year 1,434,993 2,977,607
Cash and Cash Equivalents - End of
period $ 1,183,931 $ 1,639,301
</TABLE>
See Notes to Financial Statements (Unaudited).
LIBERTY EQUIPMENT INVESTORS-1983
NOTES TO FINANCIAL STATEMENTS FOR THE
TWENTY-SIX WEEK PERIOD ENDED JUNE 30, 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 First Hill Diagnostic Imaging Center (the
"Center"), located in Seattle, Washington, ceased operations.
The occupancy lease for the Center currently terminates on August
31, 1995. Termination of the lease will terminate the joint
venture agreement. The Partnership is investigating certain
prospects for the sale or disposal of its remaining assets
related to the center. The Partnership estimates that it has
adequate working capital reserves to satisfy all of its remaining
obligations related to its equipment and its leasehold and joint
venture interests related to the Center.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At June 30, 1995, Registrant had $1,183,931 in cash and cash
equivalents which included $1,173,510 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 third quarter of 1995.
Registrant generated positive cash flow in the first half of 1995
from the sale of five buses and from its medical imaging center
investment. These generated funds were utilized, together with
partnership reserves, to provide for distributions to Partners.
During the second quarter of 1995, Registrant sold its remaining
four buses. In total, during the first half of 1995 Registrant
sold 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.
As of June 30, 1995, Registrant's remaining investments included
its equipment and leasehold and joint venture interests related
to the Seattle-based First Hill medical imaging facility and its
TDEC investment (which is considered to have relatively small, if
any, value over its associated debt).
The First Hill medical imaging facility ceased operations on June
30, 1995. In addition, the occupancy lease will terminate on
August 31, 1995. Termination of the lease will also terminate
the joint venture agreement.
During 1995, Registrant will focus on liquidating and
opportunistically realizing value for its assets in the medical
imaging facility and selling or otherwise disposing of its
interest in TDEC. Registrant seeks to complete all such
transactions in an orderly manner with estimated dissolution of
Registrant occurring, depending upon a number of presently
unknown circumstances, in the latter part 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.
Asset Impairment and Estimated Useful Life of Assets
Registrant assesses the impairment of assets on a quarterly basis
or immediately upon the occurrence of a significant event in the
marketplace or an event that directly impacts its assets or
related contracts. The methodology varies depending on the type
of asset but typically consists of comparing the net carrying
value of the asset to either: 1) the undiscounted expected
future cash flows generated by the asset plus estimated salvage
value, if any, less estimated selling commissions at the end of
the cash flow stream (usually corresponding to the end of the
current lease term of the asset), and/or 2) the current market
values obtained from industry sources. The market values used
are conservative wholesale values.
If the net carrying value of a particular asset is materially
higher than the estimated net realizable value, Registrant will
write down the net carrying value of the asset accordingly;
however, Registrant does not write its assets down to a value
below the asset-related non-recourse debt. Registrant relies on
industry sources and its experience in the particular marketplace
to determine whether an asset impairment is other than temporary.
Each year, Registrant compares the estimated useful life of its
assets to similar assets owned by others in the particular
industry and assesses useful life in light of changing technology
in the particular industry. Registrant also assesses the
estimated useful life of its equipment immediately upon the
occurrence of a significant event in the marketplace or an event
that directly impacts its assets or related contracts.
Results Of Operations
Overall Results
For the thirteen week periods ended June 30, 1995 and July 1,
1994:
Registrant had a net loss in the thirteen week period ended June
30, 1995 compared to net income for the same period in 1994
primarily due to lower total revenues in the 1995 second quarter.
Total revenues decreased in the thirteen week period ended June
30, 1995 when compared to the same period in 1994 primarily due
to no bus revenue in the 1995 period compared to approximately
$9,000 in the same period of 1994 since Registrant's buses were
off-lease during the 1995 period prior to their sale.
Registrant's medical imaging facility generated no revenue in the
1995 thirteen week period compared to approximately $95,000 in
the same period of 1994 reflecting the fact that the joint
venture, from which Registrant historically derived all revenue
related to the facility pursuant to the equity method of
accounting, reserved all funds generated in the 1995 second
quarter for obligations related to closing the facility and
liquidating the joint venture.
Total expenses remained relatively unchanged in the thirteen week
period ended June 30, 1995 compared to the same period in 1994.
Registrant incurred higher professional fees related to the
closing of the imaging center, and higher property operating
expenses primarily due to the write-off of uncollectible bus
rents in the 1995 period. 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 twenty-six week periods ended June 30, 1995 and July 1,
1994:
Registrant experienced a net loss for the twenty-six week period
ended June 30, 1995 compared to net income for the same period in
1994 due to lower total revenues partially offset by lower total
expenses during the first half of 1995.
Total revenues decreased in the first half 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 $146,000 in the 1995 and 1994 twenty-six week
periods, respectively. The decrease in medical imaging facility
revenue to Registrant primarily reflects the fact that the joint
venture reserved all funds generated in the 1995 second quarter
for obligations related to closing the facility and liquidating
the joint venture.
Total expenses decreased in the twenty-six week period ended June
30, 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 June 30, 1995 and July 1,
1994:
Equipment Leasing:
Registrant's equipment leasing segment generated no operating
revenue in the 1995 second quarter compared to approximately
$9,000 in the 1994 second quarter. This decrease reflects the
fact that Registrant's buses were off-lease during the 1995
period prior to their sale.
All of Registrant's property operating expenses were incurred by
the equipment leasing segment which incurred approximately $8,000
in property operating expenses in the 1995 second quarter
compared to approximately $4,000 in the 1994 second quarter. The
increase primarily reflects the write-off of uncollectible bus
rents in the 1995 period. Additionally, depreciation and
amortization expense was approximately $500 in thirteen week
period ended June 30, 1995 compared to approximately $12,000 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
second quarter compared to approximately $95,000 in the 1994
second quarter reflecting the fact that the joint venture, from
which Registrant historically derived all revenue related to the
facility pursuant to the equity method of accounting, reserved
all funds generated in the 1995 second quarter for obligations
related to closing the facility and liquidating the joint
venture.
For the twenty-six week periods ended June 30, 1995 and July 1,
1994:
Equipment Leasing:
Registrant's equipment leasing segment generated no operating
revenue in the first half 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
$8,000 in property operating expenses in the first half 1995
compared to approximately $23,000 in the first half 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 $6,000 in 1995 compared to
approximately $28,000 in 1994 due primarily to the sales of
remaining buses in the intervening period.
Medical Imaging:
Registrant's medical imaging segment generated revenues to
Registrant of approximately $59,000 in the first half 1995
compared to approximately $146,000 in the same period in 1994.
The decrease was primarily due to the fact that the joint venture
reserved all funds generated in the 1995 second quarter for
obligations related to closing the facility and liquidating the
joint venture.
Inflation
The low level of inflation during the first half 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.
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
A). Exhibits
None
B). Reports on Form 8-K
None
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: August 11, 1995 /s/ Robert F. Aufenanger
Robert F. Aufenanger
Director and President
Chief Executive Officer
Dated: August 11, 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 second 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> 6-MOS
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-END> Jun-30-1995
<CASH> 10,421
<SECURITIES> 1,173,510
<RECEIVABLES> 155,180
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 3,878,660
<DEPRECIATION> 3,876,733
<TOTAL-ASSETS> 4,631,233
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 929,475
<TOTAL-LIABILITY-AND-EQUITY> 4,631,233
<SALES> 0
<TOTAL-REVENUES> 106,002
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 107,463
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,461)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,461)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,461)
<EPS-PRIMARY> (0.04)
<EPS-DILUTED> 0
</TABLE>
