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, 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
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Liberty Equipment Investors-1983
Table of Contents
Balance Sheets as of March 31, 1995 (Unaudited) and
December 30, 1994 (Unaudited)
Statements of Operations for the Thirteen Week
Periods Ended March 31, 1995 (Unaudited) and April 1,
1994 (Unaudited)
Statements of Cash Flows for the Thirteen Week
Periods Ended March 31, 1995 (Unaudited) and April 1,
1994 (Unaudited)
Notes to Financial Statements for the Thirteen Week
Period Ended March 31, 1995 (Unaudited)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
BALANCE SHEETS
AS OF MARCH 31, 1995 (UNAUDITED)
AND DECEMBER 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
March 31, December 30,
NOTES 1995 1994
<S> <C> <C> <C>
ASSETS:
Cash and cash equivalents
$ 1,313,946 $ 1,434,993
Property under management
contract and held for
lease (less accumulated
depreciation of
$4,338,048 at March 31,
1995 and $4,464,357 at
December 30, 1994) 3 181,421 236,925
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 153,026 151,687
TOTAL ASSETS $ 4,938,588 $ 5,113,800
LIABILITIES AND PARTNERS'
CAPITAL:
Liabilities:
Note payable - TDEC $ 3,419,078 $ 3,419,078
Accounts payable to
affiliate and accrued
liabilities 316,635 278,934
Total Liabilities 3,735,713 3,698,012
PARTNERS' CAPITAL: 1
General Partner:
Capital contributions,
net of offering expenses
and return of capital 289,341 290,771
Cash distributions (116,310) (115,316)
Cumulative loss (161,001) (161,296)
12,030 14,159
</TABLE>
(Continued on the following page)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
BALANCE SHEETS
AS OF MARCH 31, 1995 (UNAUDITED) AND
DECEMBER 30, 1994 (UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
March 31, 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) 28,644,491 28,786,131
Cash distributions (11,514,449) (11,416,087)
Cumulative loss (15,939,197) (15,968,415)
1,190,845 1,401,629
Total Partners' Capital 1,202,875 1,415,788
TOTAL LIABILITIES AND
PARTNERS' CAPITAL $ 4,938,588 $ 5,113,800
</TABLE>
See Notes to Financial Statements (Unaudited).
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF OPERATIONS FOR THE THIRTEEN WEEK
PERIODS ENDED MARCH 31, 1995 (UNAUDITED)
AND APRIL 1, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
March 31, April 1,
1995 1994
<S> <C> <C>
REVENUES:
Rental and other operating income $ 59,009 $ 79,764
Interest income 19,796 20,569
(Loss) gain on disposals of leased
assets (1,828) 5,672
Total Revenues 76,977 106,005
EXPENSES:
Depreciation and amortization 5,873 15,767
Property operating expenses - 19,335
Other operating expenses 41,591 70,760
Total Expenses 47,464 105,862
Net Income $ 29,513 $ 143
Net Income allocated to General
Partner $ 295 $ 1
Net Income allocated to Limited
Partners $ 29,218 $ 142
Income Per Unit of Limited
Partnership Interest (40,000.2
Units of Limited Partnership
Interest) $ 0.73 $ 0.00
</TABLE>
See Notes to Financial Statements (Unaudited).
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF CASH FLOWS FOR THE
THIRTEEN WEEK PERIODS ENDED MARCH 31, 1995 (UNAUDITED)
AND APRIL 1, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
March 31, April 1,
1995 1994
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities:
Net income $ 29,513 $ 143
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 5,873 15,767
Loss (Gain) on disposals of leased
assets 1,828 (5,672)
Increase/Decrease in:
Accounts payable to affiliates and
accrued liabilities 37,701 5,625
Accounts receivable and other
assets (1,339) (14,247)
Net cash provided by operating
activities 73,576 1,616
Cash flows from investing activities:
Proceeds from disposal of
equipment 47,803 142,400
Net cash provided by investing
activities 47,803 142,400
</TABLE>
(Continued on the following page)
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
STATEMENTS OF CASH FLOWS FOR THE
THIRTEEN WEEK PERIODS ENDED MARCH 31, 1995 (UNAUDITED)
AND APRIL 1, 1994 (UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
March 31, April 1,
1995 1994
<S> <C> <C>
Cash flows from financing activities:
Cash distributed to:
Limited partners (98,362) (473,222)
General partner (994) (4,780)
Capital returned to:
Limited partners (141,640) (1,126,786)
General partner (1,430) (11,383)
Net cash used by financing
activities (242,426) (1,616,171)
Net decrease in cash and cash
equivalents (121,047) (1,472,155)
Cash and Cash Equivalents -
Beginning of year 1,434,993 2,977,607
Cash and Cash Equivalents - End of
period $ 1,313,946 $ 1,505,452
</TABLE>
See Notes to Financial Statements (Unaudited).
<PAGE>
LIBERTY EQUIPMENT INVESTORS-1983
NOTES TO FINANCIAL STATEMENTS FOR THE
THIRTEEN WEEK PERIOD ENDED MARCH 31, 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 ("MLPI" or 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 MLPI and $200 by the initial limited
partners. As provided in the Partnership Agreement, MLPI 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 quarter of 1995 the Partnership sold one of its
intercity buses and received $50,503, net of costs incurred to
prepare the bus for sale. Subsequent to the first quarter, the
Partnership paid to the bus manager a commission of $2,700 for
this bus sale. Subsequent to the end of the first quarter, the
Partnership sold its remaining four buses for an aggregate amount
of $188,800, net of sales commissions.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At March 31, 1995, Registrant had $1,313,946 in cash and cash
equivalents which included $1,255,964 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 second quarter of 1995.
Registrant generated positive cash flow in the first quarter of
1995 from the sale of one bus and from its medical imaging
facility investment. These generated funds were utilized to
provide for distributions to Partners.
Since the end of the second quarter of 1994, all of Registrant's
remaining buses had been off-lease and held for sale. During the
first quarter of 1995, Registrant sold one bus and, subsequent to
the end of the first quarter 1995, Registrant sold its remaining
four buses.
The occupancy lease for Registrant's medical facility currently
terminates on August 31, 1995 unless renewed. Termination of the
lease would terminate the joint venture agreement. Registrant
has notified its venture partners that it does not intend to
renew the lease.
As of March 31, 1995, Registrant's remaining investments included
four buses discussed above, its investment in 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).
During 1995, Registrant will focus on opportunistically realizing
value for its investment in the medical imaging facility,
including selling or otherwise disposing of its interest in TDEC.
Registrant seeks to complete all such sales or dispositions in an
orderly manner with estimated dissolution of Registrant
occurring, depending upon a number of presently unknown
circumstances, in 1995.
It is currently estimated that Registrant's 1995 cash flow to be
realized from operating its remaining assets, together with asset
sales proceeds and 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
Registrant's net income for the thirteen week period ended March
31, 1995 was higher than net income for the same period in 1994
due to lower total expenses partially offset by lower total
revenues in the 1995 first quarter.
Total revenues decreased in the first quarter of 1995 when
compared to the same period in 1994 primarily due to no bus
revenue in the 1995 thirteen week period compared to
approximately $30,000 in the same period of 1994 reflecting the
fact that Registrant's remaining buses were off-lease in the 1995
first quarter. This decrease was partially offset by slightly
higher revenues from Registrant's medical imaging facility, which
generated revenues to Registrant of approximately $59,000 and
$50,000 in the 1995 and 1994 thirteen week periods, respectively.
The increase in revenues to Registrant reflects higher cash
collections experienced by the facility.
Total expenses decreased in 1995 compared to 1994 reflecting
lower depreciation and amortization expense as a result of the
sales of buses in the intervening period, and no operating
expenses in 1995 due to sales of buses and the fact that all
remaining buses were off-lease during the first quarter of 1995.
Results By Segment
Equipment Leasing:
Registrant's equipment leasing segment generated no operating
revenues in the 1995 first quarter compared to approximately
$30,000 in the 1994 first quarter. This decrease was due to the
fact that Registrant's remaining buses were off-lease in the 1995
first quarter.
Registrant's equipment leasing segment incurred no property
operating expenses in the 1995 first quarter compared to
approximately $19,000 in the 1994 first quarter due to the fact
that all of Registrant's remaining buses were off-lease in the
1995 first quarter. Additionally, depreciation and amortization
expense was approximately $6,000 in 1995 compared to
approximately $15,000 in 1994. These decreases are due primarily
to the sales of buses in the intervening period.
Medical Imaging:
Registrant's medical imaging segment, which consists of one
diagnostic imaging facility, generated revenues to Registrant of
approximately $59,000 in the 1995 first quarter compared to
approximately $50,000 in the 1994 first quarter. The increase in
revenues reflects higher cash collections experienced by the
facility.
Inflation
The low levels of inflation during 1995 and 1994 had no
significant effect on Registrant's operations.
<PAGE>
PART II - OTHER INFORMATION
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
None
<PAGE>
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: May 10, 1995 /s/ Robert F. Aufenanger
Robert F. Aufenanger
Director and President
Chief Executive Officer
Dated: May 10, 1995 /s/ David G. Cohen
David G. Cohen
Treasurer
Chief Accounting Officer
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND> This schedule contains summary financial
information extracted from the first 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> 3-MOS
<FISCAL-YEAR-END> Mar-31-1995
<PERIOD-END> Mar-31-1995
<CASH> 57,982
<SECURITIES> 1,255,964
<RECEIVABLES> 153,026
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 4,519,469
<DEPRECIATION> 4,338,048
<TOTAL-ASSETS> 4,938,588
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 1,202,875
<TOTAL-LIABILITY-AND-EQUITY> 4,938,588
<SALES> 0
<TOTAL-REVENUES> 76,977
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 47,464
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 29,513
<INCOME-TAX> 0
<INCOME-CONTINUING> 29,513
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,513
<EPS-PRIMARY> 0.73
<EPS-DILUTED> 0
</TABLE>
