UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter Ended June 30, 1996
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 0-13158
DELPHI FILM ASSOCIATES III
(Exact name of registrant as specified in its charter)
New York 13-3177344
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
666 Third Avenue, New York, New York 10017
(Address of principal executive offices) (Zip Code)
(212) 983-9040
(Registrant's telephone number, including area code)
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>
DELPHI FILM ASSOCIATES III
(A New York Limited Partnership)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1996 1995
<S> <C> <C>
ASSETS
Cash $ $
191 155
Short-Term Investments 547 986
Receivable from Columbia-Delphi
III
Productions 534 640
Receivable from Tri-Star-Delphi
III
Productions 307 503
Interest in Motion Picture
Venture-Columbia-
Delphi III Productions 118 132
Interest in Motion Picture
Venture-Tri-Star-
Delphi III Productions
428 456
Total $ $
Assets 2,125 2,872
LIABILITIES AND PARTNERS'
CAPITAL
Liabilities:
Accrued Expenses and Accounts $ $
Payable 26 55
Total
Liabilities 26 55
Partners' Capital (Note 2):
General Partner 63 70
Limited Partners
2,036 2,747
Total
Partners' Capital 2,099 2,817
Total
Liabilities and Partners'
$ $
Capital 2,125 2,872
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
DELPHI FILM ASSOCIATES III
(A New York Limited Partnership)
STATEMENTS OF OPERATIONS
(000's Omitted, except net (loss) profit per unit)
Unaudited
<TABLE>
<CAPTION>
For
the Three Months For the Six Months
Ended June 30, Ended June
30,
1996
1995 1996 1995
<S> <C> <C> <C> <C>
Interest Income $ $ $ $
13 18 26 34
Expenses:
Operating Expenses
76 66 139 127
76 66 139 127
Loss before Share of
Profit
in Motion Picture (63) (48) (113) (93)
Ventures
Share of Profit in
Motion Picture
Venture--Columbia-
Delphi III
Productions 10 46 109 64
Share of Profit in
Motion Picture
Venture--Tri-Star-
Delphi III
Productions
42 175 119 356
Net (Loss) Profit $ $ $ $
(11) 173 115 327
Net (Loss) Profit Per
Unit of
Limited Partnership
Interest
(9,702 Units) $ $ $ $
(1) 17 12 33
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
DELPHI FILM ASSOCIATES III
(A New York Limited Partnership)
STATEMENTS OF CASH FLOWS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Profit $ $
115 327
Adjustments to reconcile Net
Profit to net cash
provided by operating
activities:
Share of Profit in Motion
Picture
Ventures (228) (420)
Distributions from Joint 270 531
Ventures
Changes in Assets and
Liabilities:
Decrease (Increase) in
Receivables from
Joint Ventures, net 302 (83)
Decrease in Accrued
Expenses and
Accounts Payable
(29) (30)
Net Cash Provided by
Operating
Activities
430 325
Cash Flow From Investing
Activities:
Purchases of Short-Term (2,160) (1,586)
Investments
Redemptions of Short-Term
Investments 2,599 1,616
Net Cash Provided by
Investing Activities 439 30
Cash Flow from Financing
Activities:
Distribution to Partners
(833) (343)
Net Cash Used by Financing
Activities (833) (343)
Increase In Cash 36 12
Cash at beginning of period
155 132
Cash at end of period $ $
191 144
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
DELPHI FILM ASSOCIATES III
(A New York Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Unaudited
1. Basis of Presentation
The accompanying unaudited financial statements have
been prepared in accordance with generally accepted
accounting principles for interim financial information.
They do not include all information and notes required by
generally accepted accounting principles for complete
financial statements. There has been no material change in
the information disclosed in the notes to financial
statements of the Partnership included in the Annual Report
on Form 10-K for the year ended December 31, 1995. The
information furnished includes all adjustments which are, in
the opinion of management, necessary to present fairly the
financial position of the Partnership as of June 30, 1996
and the results of operations and cash flows for the periods
ended June 30, 1996 and 1995. Results of operations for the
three and six month periods ended June 30, 1996 are not
necessarily indicative of the results that may be expected
for the entire fiscal year.
2. Current Operations
As of June 30, 1996, all thirty-four films in which the
Partnership has an interest had been released. All of these
films have completed their theatrical release and are being
distributed in various ancillary markets.
As of June 30 1996, the Partnership received in the
aggregate approximately $553,000 and $1,613,000 from the
Columbia Joint Venture and the Tri-Star Joint Venture,
respectively, which represents accrued distribution fees
paid with respect to the Distribution Fee Reduction
Payments. These payments are net of amounts withheld by
each Distributor for the recoupment of the Advances made by
each Distributor. Since these Distribution Fee Reduction
Payments were not sufficient to enable either Joint Venture
to recoup amounts spent by the respective Joint Venture for
the production of films and the acquisition of interests in
films (excluding amounts spent for payments in the nature of
interest) (the "Expenditures"), each Distributor is required
to pay to each Joint Venture an amount equal to all
subsequent distribution fees earned by it from the
distribution of films on behalf of that Joint Venture up to
that Joint Venture's unrecouped Expenditures. If a Joint
Venture is able to recoup its Expenditures, the respective
Distributor would be entitled to recoup these payments, with
interest, from amounts thereafter otherwise payable to the
Partnership.
Based on the anticipated performance of the
Partnership's films, each Distributor is required to
continue making Distribution Fee Reduction Payments with
respect to its films. Accordingly, the Partnership's share
of distribution fees earned and expected to be earned by the
Distributors as of June 30, 1996 of approximately $23,000
and $248,000 have been accrued by the Partnership as a
receivable from the Columbia Joint Venture and the Tri-Star
Joint Venture, respectively.
For the purpose of computing the net (loss) profit per
unit, the net (loss) profit for the period is allocated 99%
to the limited partners and 1% to the General Partner.
3. Additional Information
Additional information, including the audited year end
1995 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 31, 1995 on
file with the Securities and Exchange Commission.
<PAGE>
Management's Discussion and Analysis of Financial Condition
And Results of Operations
a. Financial Condition
The Partnership has fully satisfied its commitments to
contribute funds to the Joint Ventures for the production
of, and acquisition of interests in, films. At June 30,
1996, the Partnership held cash of approximately $191,000
and short-term investments of approximately $547,000.
Based on the performance of the films released through
the Columbia Joint Venture and the Tri-Star Joint Venture,
as of June 30,1996, the Distributors made Distribution Fee
Reduction Payments with respect to their films of which
approximately $553,000 and $1,613,000, respectively, was
allocated to the Partnership. The payments are net of
amounts withheld by the Distributor for the recoupment of
Advances made by each Distributor. Since these payments
were not sufficient to enable either Joint Venture to recoup
its Expenditures, each Distributor is required to pay its
respective Joint Venture an amount equal to all subsequent
distribution fees earned by it from the distribution of
films on behalf of that Joint Venture up to its unrecouped
Expenditures. If a Joint Venture is able to recoup its
Expenditures, the respective Distributor will be entitled to
recoup these payments, with interest, from amounts
thereafter otherwise payable to the Partnership.
The Partnership is in the process of evaluating the
value of its interest in the film assets for the purpose of
possibly selling that interest and eventually liquidating
the Partnership. The General Partner anticipates that the
Partnership will be liquidated by the end of 1996. No
assurance can be provided that the film assets will be
successfully sold, or if sold, when such sale would occur.
Upon the ultimate sale of the film assets, the Partnership
will commence taking steps to dissolve and liquidate. Since
the Partnership's obligation to make contributions to the
Joint Ventures for the production of, and acquisition of
interests in, films has been satisfied, all revenues
received by the Partnership is used to establish a reserve
for operating expenses of the Partnership and, to the extent
possible, to make cash distributions to partners. The
Partnership does not anticipate significant future revenues
and accordingly, the Partnership does not currently
anticipate making cash distributions to partners on a
quarterly basis. However, the Partnership may make future
distributions if it realizes proceeds from its interest in
films or from the sale of its interest in films (should the
sale occur) net of a reserve for the Partnership's operating
expenses.
The Partnership commenced cash distributions to its
partners in February 1986. Distributions to limited
partners through June 30, 1996 have aggregated $3,155 per
unit (63.1% of the limited partners' original $5,000
investment in the Partnership), including $85 per unit that
was distributed on May 30, 1996.
b. Results of Operations
The Partnership's operating results are primarily
dependent upon the operating results of the Joint Ventures
and are significantly impacted by the Joint Ventures'
policies.
The performance of each film is based upon the amount
expended for production and other costs associated with a
film and the revenue generated by a film. The amount and
timing of revenue generated by each film is dependent upon
the degree of acceptance by the consumer public and the
particular ancillary market in which the film is then being
exhibited.
Amounts contributed toward each film are compared
periodically to the expected total revenue to be generated
for that film, and write-downs may occur to the extent the
amounts invested exceed the expected total revenue for that
film.
Additionally, each Joint Venture records income with
respect to the Distribution Fee Reduction Payments, to the
extent available, which may allow it to recover its
investment in films.
For the three months ended June 30, 1996, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $10,000, due primarily to the
profitable results of certain films. The Tri-Star Joint
Venture had a net profit of which the Partnership's share
was approximately $42,000, due primarily to the profitable
results of certain films. In addition, the Partnership
earned approximately $13,000 of interest income from its
short-term investments and incurred approximately $76,000 of
expenses from its operations, resulting in an overall net
loss to the Partnership of approximately $11,000.
For the three months ended June 30, 1995, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $46,000, due primarily to the
profitable results of certain films. The Tri-Star Joint
Venture had a net profit of which the Partnership's share
was approximately $175,000, due primarily to the profitable
results of certain films. In addition, the Partnership
earned approximately $18,000 of interest income from its
short-term investments and incurred approximately $66,000 of
expenses from its operations, resulting in an overall net
profit to the Partnership of approximately $173,000.
For the six months ended June 30, 1996 the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $109,000, due primarily to the
profitable results of certain films. The Tri-Star Joint
Venture had a net profit of which the Partnership's share
was approximately $119,000, due primarily to the profitable
results of certain films. In addition, the Partnership
earned approximately $26,000 of interest income from its
short-term investments and incurred approximately $139,000
of expenses from its operations, resulting in an overall
net profit to the Partnership of approximately $115,000.
For the six months ended June 30, 1995, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $64,000, due primarily to the
profitable results of certain films. The Tri-Star Joint
Venture had a net profit of which the Partnership's share
was approximately $356,000, due primarily to the profitable
results of certain films and the accrual of Distribution Fee
Reduction Payments. In addition, the Partnership earned
approximately $34,000 of interest income from its short-term
investments and incurred approximately $127,000 of expenses
from its operations, resulting in an overall net profit to
the Partnership of approximately $327,000.
The decrease in interest income for the three and six
month periods ended
June 30, 1996 as compared with the corresponding periods in
1995 is due primarily to lower interest rates earned on
short-term investments during 1996.
The increase in operating expenses for the three and
six month periods ended June 30, 1996 as compared with the
corresponding periods in 1995, is due primarily to the
increase in the reimbursement to the General Partner for out-
of-pocket expenses incurred in connection with its
management of the Partnership's business.
<PAGE>
COLUMBIA-DELPHI III PRODUCTIONS
(A Joint Venture)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1996 1995
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization
of $76,788 and $76,726, $ $
respectively 698 760
Motion Picture Costs Recoverable
from
Distribution Fees 89 171
Receivable from Columbia
Pictures
(Distributor)
1,660 2,010
Total $ 2,447 $
Assets 2,941
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to Columbia Pictures $ $
Industries, Inc. 1,215 1,541
Payable to Delphi Film
Associates III 534 640
Total
Liabilities 1,749 2,181
Venturers' Capital:
Columbia Pictures Industries, 565 613
Inc.
Delphi Film Associates III
133 147
Total
Venturers' Capital 698 760
Total
Liabilities and Venturers'
$ $ 2,941
Capital 2,447
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
COLUMBIA - DELPHI III PRODUCTIONS
(A Joint Venture)
STATEMENTS OF OPERATIONS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June
30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net Revenue From Motion
Picture
Exploitation $ $ $ $
36 199 414 285
Less: Amortization of
Motion
Picture
Production and
Advertising
Costs 4 32 62 75
Income from Operations 32 167 352 210
Accrued Distribution Fee
Reduction
0 0 16 0
Net Income $ $ $ $
32 167 368 210
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
COLUMBIA - DELPHI III PRODUCTIONS
(A Joint Venture)
STATEMENTS OF CASH FLOWS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
368 210
Adjustments to reconcile Net
Income to net cash
provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 62 75
Accrued Distributions to 432 185
Venturers
Changes in Assets and
Liabilities:
Decrease in Payable to
Columbia
Pictures Industries, (326) (156)
Inc.
Decrease in Receivable
from
Columbia Pictures 350 71
(Distributor)
Decrease in Motion Picture
Costs
Recoverable from 82 141
Distribution Fees
Decrease in Payable to
Delphi Film
Associates III, net (106) (29)
Decrease in Advance to
Delphi Film
Associates III
0 (27)
Net Cash Provided by
Operating Activities 862 470
Cash Flow from Financing
Activities:
Distributions to Venturers
(862) (470)
Net Cash Used by
Financing Activities (862) (470)
Net Change in Cash 0 0
Cash at beginning of period
0 0
Cash at end of period $ $
0 0
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
COLUMBIA - DELPHI III PRODUCTIONS
(A Joint Venture)
NOTES TO FINANCIAL STATEMENTS
Unaudited
1. Basis of Presentation
The accompanying unaudited financial statements have
been prepared in accordance with generally accepted
accounting principles for interim financial information.
They do not include all information and notes required by
generally accepted accounting principles for complete
financial statements. There has been no material change in
the information disclosed in the notes to financial
statements of the Joint Venture included in the Annual
Report on Form 10-K of Delphi Film Associates III (the
"Partnership") for the year ended December 31, 1995. The
information furnished includes all adjustments which are, in
the opinion of management, necessary to present fairly the
financial position of the Joint Venture as of June 30, 1996
and the results of its operations and cash flows for the
periods ended June 30, 1996 and 1995. Results of operations
for the period ended June 30, 1996 are not necessarily
indicative of the results that may be expected for the
entire fiscal year.
2. Current Operations
All seven films in which the Joint Venture has an
interest have completed their theatrical release and are
being distributed in various ancillary markets. For the
three
and six month periods ended June 30, 1996, the Joint
Venture is reporting net revenue of $36,000 and $414,000,
respectively, due primarily to the performance of its films
in the worldwide free and pay television markets.
For the three and six month periods ended June 30,
1995, the Joint Venture reported net revenue of $199,000 and
$285,000, respectively, due primarily to the performance of
its films in the worldwide free television, pay television
and worldwide home video markets.
3. Distribution Fee Reduction
The Joint Venture was entitled to a payment from its
Distributor in reduction of the Distributor's aggregate
distribution fee if, by June 30, 1991, the Joint Venture had
not received, in the aggregate, from net proceeds and gross
receipts (excluding amounts paid to the Joint Venture for
the recovery of advertising and promotion charge payments)
an amount at least equal to the amounts spent by the Joint
Venture for the production of films and the acquisition of
interests in films (excluding certain amounts spent for
payments in the nature of interest) (the "Expenditures").
Payments totaling $2,434,000 were made to the Joint Venture
representing the aggregate distribution fee previously
received by its Distributor. The payment to the Joint
Venture was allocated to the Partnership and Columbia based
on their respective percentage interest in a film for which
a distribution fee was received. In addition, the
Distributor is required to pay to the Joint Venture an
amount equal to all subsequent distribution fees earned by
it until the Joint Venture has recouped an amount equal to
its Expenditures. Accordingly, $89,000 has been accrued as
Motion Picture Costs Recoverable from Distribution Fees as
of June 30, 1996, in the accompanying financial statements.
4. Additional Information
Additional information, including the audited year end
1995 Financial Statements and the Summary of Significant
Accounting Policies, is included in the Annual Report on
Form 10-K of the Partnership for the year ended December 31,
1995.
<PAGE>
TRI-STAR -DELPHI III PRODUCTIONS
(A Joint Venture)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1996 1995
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization of
$194,749 and $194,664, $ 2,581 $
respectively 2,666
Motion Picture Costs Recoverable
from
Distribution Fees 1,011 1,432
Receivable from TriStar
Pictures, Inc.
(Distributor)
323 476
Total $ 3,915 $
Assets 4,574
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to TriStar Pictures, $ 1,027 $
Inc. 1,405
Payable to Delphi Film
Associates III 307 503
Total
Liabilities 1,334 1,908
Venturers' Capital:
TriStar Pictures, Inc. 2,153 2,210
Delphi Film Associates III
428 456
Total
Venturers' Capital 2,581 2,666
Total
Liabilities and Venturers'
$ $
Capital 3,915 4,574
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
TRI-STAR-DELPHI III PRODUCTIONS
(A Joint Venture)
STATEMENTS OF OPERATIONS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For
the Three Months For the Six Months
Ended June 30, Ended June
30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net Revenue From Motion
Picture
Exploitation $ $ $ $
179 893 533 1,010
Less: Amortization of
Motion
Picture
Production
and
Advertising Costs 26 315 85 337
Income from Operations 153 578 448 673
Accrued Distribution Fee
Reduction
0 0 0 461
Net Income $ $ $ $
153 578 448 1,134
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
TRI-STAR - DELPHI III PRODUCTIONS
(A Joint Venture)
STATEMENTS OF CASH FLOWS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
448 1,134
Adjustments to reconcile Net
Income to net cash
provided by operating
activities:
Amortization of Motion Picture
Production
and Advertising Costs 85 337
Accrued Distributions to 574 (557)
Venturers
Changes in Assets and
Liabilities:
(Decrease) Increase in
Payable to Delphi
Film Associates III, net (196) 112
(Decrease ) Increase in
Payable to TriStar
Pictures, Inc. (378) 445
Decrease (Increase) in
Receivable from
TriStar Pictures, Inc. 153 (419)
(Distributor)
Decrease (Increase) in
Motion Picture Costs
Recoverable from
Distribution Fees 421 (138)
Net Cash Provided by
Operating
Activities
1,107 914
Cash Flow From Financing
Activities:
Distributions to Venturers
(1,107) (914)
Net Cash Used by Financing
Activities (1,107) (914)
Net Change in Cash 0 0
Cash at beginning of period
0 0
Cash at end of period $ $
0 0
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
TRISTAR - DELPHI III PRODUCTIONS
(A Joint Venture)
NOTES TO FINANCIAL STATEMENTS
Unaudited
1. Basis of Presentation
The accompanying unaudited financial statements have
been prepared in accordance with generally accepted
accounting principles for interim financial information.
They do not include all information and notes required by
generally accepted accounting principles for complete
financial statements. There has been no material change in
the information disclosed in the notes to financial
statements of the Joint Venture included in the Annual
Report on Form 10-K of Delphi Film Associates III (the
"Partnership") for the year ended December 31, 1995. The
information furnished includes all adjustments which are, in
the opinion of management, necessary to present fairly the
financial position of the Joint Venture as of June 30, 1996
and the results of its operations and cash flows for the
periods ended June 30, 1996 and 1995. Results of operations
for the period ended June 30, 1996 are not necessarily
indicative of the results that may be expected for the
entire fiscal year.
2. Current Operations
All twenty-seven films in which the Joint Venture has
an interest have completed their theatrical release and are
being distributed in various ancillary markets. For the
three and six month periods ended June 30, 1996 the Joint
Venture is reporting net revenue of $179,000 and $533,000,
respectively, due primarily to the performance of its films
in the worldwide free and pay television markets.
For the three and six month periods ended June 30,
1995, the Joint Venture reported net revenue of $893,000 and
$1,010,000, respectively, due primarily to the performance
of its films in the worldwide free and pay television
markets. For the six month period ended June 30, 1995, the
Joint Venture recorded an increase of $461,000 in Motion
Picture Costs Recoverable from Distribution Fees due to a
change in the estimated distribution fee to be earned by its
Distributor.
3. Distribution Fee Reduction
The Joint Venture was entitled to a payment from its
Distributor in reduction of the Distributor's aggregate
distribution fee if, by June 30, 1991, the Joint Venture had
not received, in the aggregate, from net proceeds and gross
receipts (excluding amounts paid to the Joint Venture for
the recovery of advertising and promotion charge payments)
an amount at least equal to the amounts spent by the Joint
Venture for the production of films and the acquisition of
interests in films (excluding certain amounts spent for
payments in the nature of interest) (the "Expenditures").
Payments totaling $4,998,000 were made to the Joint Venture
representing the aggregate distribution fee previously
received by its Distributor. The payment to the Joint
Venture was allocated to the Partnership and TriStar based
on their respective percentage interest in the films for
which a distribution fee was received. The Distributor is
required to pay to the Joint Venture an amount equal to all
subsequent distribution fees earned by it until the Joint
Venture has recouped an amount equal to its Expenditures.
Accordingly, $1,011,000 has been accrued as Motion Picture
Costs Recoverable from Distribution Fees as of June 30,
1996, in the accompanying financial statements.
4. Additional Information
Additional information, including the audited year end
1995 Financial Statements and the Summary of Significant
Accounting Policies, is included in the Annual Report on
Form 10-K of the Partnership for the year ended December 31,
1995.
<PAGE>
PART II
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
<TABLE>
<CAPTION>
EXHIBIT
NUMBERDESCRIPTIONPAGE NUMBER
<S> <C>
<C>
27 Financial Data Schedule
</TABLE>
B). Reports 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.
DELPHI FILM ASSOCIATES III
A New York Limited Partnership
By: THE DELPHI GROUP,
General Partner
By: ML Film Entertainment,
Inc.,
Managing Partner
August 12, 1996 /s/ Diane T.
Herte________________
Date Diane T. Herte
Treasurer of the Managing
Partner of the
General Partner
(principal financial officer
and principal
accounting officer of the
Registrant)
August 12, 1996 /s/ Steven N.
Baumgarten__________
Date Steven N. Baumgarten
Director and Vice President of
the
Managing Partner of the
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial
information extracted from Balance Sheets and Statement of
Operations for the second quarter ended June 30, 1996 Form
10Q of Delphi Film Associates III and is qualified in its
entirety by reference to such financial statements.
<S>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 191,000
<SECURITIES> 547,000
<RECEIVABLES> 841,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,125,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,099,000
<TOTAL-LIABILITY-AND-EQUITY> 2,125,000
<SALES> 0
<TOTAL-REVENUES> 26,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 139,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 115,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 115,000
<EPS-PRIMARY> 12.00
<EPS-DILUTED> 0
</TABLE>
