Page 1 of 13
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 quarterly period ended September 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 0-12593
PHOENIX LEASING INCOME FUND VII
Registrant
California 68-0001202
State of Jurisdict I.R.S. Employer Identification No.
2401 Kerner Boulevard, San Rafael, California 94901-5527
- - ------------------------------------------------- ---------------------------
Address of Principal Executive Offices Zip Code
Registrant's telephone number, including area code: (415) 485-4500
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>
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<TABLE>
Part I. Financial Information
Item 1. Financial Statements
PHOENIX LEASING INCOME FUND VII AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except for Unit Amounts)
(Unaudited)
<CAPTION>
September 30, December 31,
1995 1994
---- ----
<S> <C> <C>
ASSETS
Cash and cash equivalents $3,327 $1,248
Accounts receivable (net of allowance for losses on accounts receivable
of $62 and $132 at September 30, 1995 and December 31, 1994, respectively) 75 155
Notes receivable (net of allowance for losses on notes receivable of $359 and
$401 at September 30, 1995 and December 31, 1994, respectively) 325 1,867
Equipment on operating leases and held for lease (net of accumulated depreciation
and obsolescence reserves of $3,342 and $6,009 at September 30, 1995 and
December 31, 1994, respectively) 232 533
Net investment in financing leases (net of allowance for early terminations of $71
at September 30, 1995 and December 31, 1994) 106 550
Property, cable systems and equipment (net of accumulated depreciation of $210
and $124 at September 30, 1995 and December 31, 1994, respectively) 931 993
Cable subscriber lists and franchise rights (net of accumulated amortization of $310
and $189 at September 30, 1995 and December 31, 1994, respectively) 982 1,103
Investment in joint ventures 1,111 1,339
Other assets 75 358
------ ------
Total Assets $7,164 $8,146
====== ======
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable and accrued expenses $1,563 $2,390
------ ------
Total Liabilities 1,563 2,390
------ ------
Partners' Capital
General Partner 227 57
Limited Partners, 480,000 units authorized, 366,432 units issued and
345,974 units outstanding at September 30, 1995 and December 31, 1994 5,374 5,699
------ ------
Total Partners' Capital 5,601 5,756
------ ------
Total Liabilities and Partners' Capital $7,164 $8,146
====== ======
The accompanying notes are an integral part
of these statements.
</TABLE>
<PAGE>
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<TABLE>
PHOENIX LEASING INCOME FUND VII AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands Except for Per Unit Amounts)
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
INCOME
Rental income $ 268 $ 298 $ 983 $1,252
Cable subscriber revenues 148 139 434 411
Equity in earnings from joint ventures, net 108 67 287 173
Interest income, notes receivable 6 24 425 74
Other income 17 31 125 122
------ ------ ------ ------
Total Income 547 559 2,254 2,032
------ ------ ------ ------
EXPENSES
Depreciation and amortization 190 207 481 695
Lease related operating expenses 7 19 19 98
Program service, cable system 39 29 105 89
Management fees to General Partner 27 48 223 186
Provision for losses on receivables 33 7 20 32
Interest expense -- 32 -- 99
General and administrative expenses 79 130 278 375
------ ------ ------ ------
Total Expenses 375 472 1,126 1,574
------ ------ ------ ------
Net income before income taxes 172 87 1,128 458
Income tax benefit 12 -- 2 --
------ ------ ------ ------
NET INCOME $ 184 $ 87 $1,130 $ 458
====== ====== ====== ======
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ .46 $ .25 $ 2.78 $ 1.31
====== ====== ====== ======
DISTRIBUTIONS PER LIMITED
PARTNERSHIP UNIT $ 3.72 $ 3.72 $ 3.72 $ 7.50
====== ====== ====== ======
ALLOCATION OF NET INCOME:
General Partner $ 27 $ 1 $ 169 $ 5
Limited Partners 157 86 961 453
------ ------ ------ ------
$ 184 $ 87 $1,130 $ 458
====== ====== ====== ======
The accompanying notes are an integral part
of these statements.
</TABLE>
<PAGE>
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<TABLE>
PHOENIX LEASING INCOME FUND VII AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
(Unaudited)
<CAPTION>
Nine Months Ended
September 30,
1995 1994
---- ----
<S> <C> <C>
Operating Activities:
Net income $ 1,130 $ 458
Adjustments to reconcile net income to net cash provided (used) by
operating activities:
Depreciation and amortization 481 695
Gain on sale of equipment (75) (93)
Equity in earnings from joint ventures, net (287) (173)
Provision for early termination, financing leases -- 28
Provision for losses on notes receivable (27) --
Provision for losses on accounts receivable 47 4
Gain on sale of marketable securities -- (1)
Decrease in accounts receivable 33 181
Decrease in accounts payable and accrued expenses (827) (1,882)
Increase in deferred income tax asset (4) --
Decrease in other assets 298 34
------- -------
Net cash provided (used) by operating activities 769 (749)
------- -------
Investing Activities:
Principal payments, financing leases 398 915
Principal payments, notes receivable 1,569 571
Proceeds from sale of equipment 148 189
Proceeds from sale of marketable securities -- 1
Distributions from joint ventures 505 160
Purchase of equipment -- (2)
Investment in joint ventures -- (45)
Property, plant and equipment, cable systems (24) (93)
------- -------
Net cash provided by investing activities 2,596 1,696
------- -------
Financing Activities:
Payments of principal, notes payable -- (1,720)
Distributions to partners (1,286) (2,594)
------- -------
Net cash used by financing activities (1,286) (4,314)
------- -------
Increase (decrease) in cash and cash equivalents 2,079 (3,367)
Cash and cash equivalents, beginning of period 1,248 4,129
------- -------
Cash and cash equivalents, end of period $ 3,327 $ 762
======= =======
Supplemental Cash Flow Information:
Cash paid for interest expense $ -- $ 123
The accompanying notes are an integral part
of these statements.
</TABLE>
<PAGE>
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PHOENIX LEASING INCOME FUND VII AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. General.
The accompanying unaudited condensed financial statements have been
prepared by the Partnership in accordance with generally accepted accounting
principles, pursuant to the rules and regulations of the Securities and Exchange
Commission. In the opinion of Management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Although management believes that the disclosures are adequate to make
the information presented not misleading, it is suggested that these condensed
financial statements be read in conjunction with the financial statements and
the notes included in the Partnership's Financial Statement, as filed with the
SEC in the latest annual report on Form 10-K.
Financial Accounting Pronouncements. In March 1995, the Financial
Accounting Standards Board issued Statement of Financial Accounting Standard No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of," which requires that long-lived assets and certain
identifiable intangibles to be held and used by an entity be reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. In performing the review for
recoverability, the entity would estimate the future cash flows expected to
result from the use of the asset and its eventual disposition. If the sum of the
expected future cash flows (undiscounted and without interest charges) is less
than the carrying amount of the asset, an impairment loss is recognized.
Measurement of an impairment loss for long-lived assets and identifiable
intangibles that an entity expects to hold and use should be based on the fair
value of the asset. Statement No. 121 is effective for financial statements for
fiscal years beginning after December 15, 1995. The Partnership does not expect
the adoption of this statement to have a material impact on its financial
position and results of operations. The Partnership plans to adopt Statement No.
121 on January 1, 1996.
Non Cash Investing Activities. During the quarter ended June 30, 1995,
the Partnership received a final distribution of common stock from one of its
investments in equipment joint ventures. The market value of the stock at the
distribution date was $9,000.
Note 2. Reclassification.
Reclassification - Certain 1994 amounts have been reclassified to
conform to the 1995 presentation.
Note 3. Income Taxes.
Federal and state income tax regulations provide that taxes on the
income or loss of the Partnership are reportable by the partners in their
individual income tax returns. Accordingly, no provision for such taxes has been
made in the accompanying financial statements.
Phoenix Cablevision of Oregon, Inc. (the Subsidiary) is a corporation
subject to state and federal tax regulations. The Subsidiary reports to the
taxing authority on the accrual basis. When income and expenses are recognized
in different periods for financial reporting purposes than for income tax
purposes, deferred taxes are provided for such differences using the liability
method.
<PAGE>
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Note 4. Notes Receivable.
Impaired Notes Receivable. On January 1, 1995, the Partnership adopted
Financial Accounting Standards Board Statement No. 114, "Accounting by Creditors
for Impairment of a Loan," and Statement No. 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures." Statement No. 114
requires that certain impaired loans be measured based on the present value of
expected cash flows discounted at the loan's effective interest rate; or,
alternatively, at the loan's observable market price or the fair value of the
collateral if the loan is collateral dependent. Prior to 1995, the allowance for
losses on notes receivable was based on the undiscounted cash flows or the fair
value of the collateral for collateral dependent loans.
In accordance with Statement No. 114, a loan is classified as
in-substance foreclosure when the Company has taken possession of the collateral
regardless of whether formal foreclosure proceedings take place. Notes
receivable previously classified as in-substance foreclosed cable systems but
for which the Company had not taken possession of the collateral have been
reclassified to notes receivable.
At September 30, 1995 the recorded investment in notes that are
considered to be impaired under Statement 114 was $151,000. Included in this
amount is $114,000 of impaired notes for which the related allowance for losses
is $11,000 and $37,000 of impaired notes for which there is no allowance.
Generally, notes receivable are classified as impaired and the accrual of
interest on such notes is discontinued when the contractual payment of principal
or interest has become 90 days past due or management has serious doubts about
further collectibility of the contractual payments. Any payments received
subsequent to the placement of the note receivable on to impaired status will
generally be applied towards the reduction of the outstanding note receivable
balance, which may include previously accrued interest as well as principal.
Once the principal and accrued interest balance has been reduced to zero, the
remaining payments will be applied to interest income.
During the quarter ended June 30, 1995, the Partnership received a
settlement on one of its notes receivable from a cable television system
operator which was considered to be impaired under Statement No. 114. The
Partnership received a partial recovery of $27,000 as a settlement which was
applied towards the $41,000 outstanding note receivable balance. The remaining
balance of $14,000 was written-off through its related allowance for loan
losses. The related allowance for loan losses for this note receivable was
provided for in a previous year in an amount equal to the carrying value of the
note. Upon receipt of the settlement of this note receivable, the Partnership
reduced the allowance for loan losses by $27,000 during the quarter ended June
30, 1995. This reduction in the allowance for loan losses was recognized as
income during the period.
The activity in the allowance for losses on notes receivable during the
nine months ended September 30, is as follows:
1995 1994
---- ----
(Amounts In Thousands)
Beginning balance $ 401 $ 401
Provision for losses (27) --
Write downs (15) --
----- -----
Ending balance $ 359 $ 401
===== =====
<PAGE>
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Note 5. Net Income (Loss) and Distributions per Limited Partnership Unit.
Net income and distributions per limited partnership unit were based on
the limited partner's share of net income and distributions, and the weighted
average number of units outstanding of 345,974 for the nine months ended
September 30, 1995 and 1994. For purposes of allocating income (loss) and
distributions to each individual limited partner, the Partnership allocates net
income (loss) and distributions based upon each respective limited partner's
ending capital account balance. The use of this method accurately reflects each
limited partner's participation in the partnership including reinvestment
through the Capital Accumulation Plan. As a result, the calculation of net
income (loss) and distributions per limited partnership unit is not indicative
of per unit income (loss) and distributions due to reinvestments through the
Capital Accumulation Plan.
Note 6. Investment in Joint Ventures.
Equipment Joint Ventures
The aggregate combined statements of operations of the equipment joint
ventures is presented below:
<TABLE>
COMBINED STATEMENTS OF OPERATIONS
(Amounts in Thousands)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
INCOME
Rental income $ 763 $ 112 $2,122 $ 475
Gain on sale of equipment 140 47 262 155
Other income 570 110 676 142
------ ------ ------ ------
Total Income 1,473 269 3,060 772
------ ------ ------ ------
EXPENSES
Depreciation 628 2 855 5
Lease related operating expenses 338 36 899 304
Management fees to General Partner 76 8 144 25
General and administrative expenses -- 28 3 83
------ ------ ------ ------
Total Expenses 1,042 74 1,901 417
------ ------ ------ ------
Net Income $ 431 $ 195 $1,159 $ 355
====== ====== ====== ======
</TABLE>
<PAGE>
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Financing Joint Ventures
The aggregate combined statements of operations of the financing joint
ventures is presented below:
<TABLE>
COMBINED STATEMENTS OF OPERATIONS
(Amounts in Thousands)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
INCOME
Interest income - notes receivable $ 14 $ 49 $ 62 $ 48
Other income 7 2 74 13
---- ---- ---- ----
Total Income 21 51 136 61
---- ---- ---- ----
EXPENSES
Management fees to General Partner 2 5 7 17
General and administrative expenses 3 8 15 28
---- ---- ---- ----
Total Expenses 5 13 22 45
---- ---- ---- ----
Net Income $ 16 $ 38 $114 $ 16
==== ==== ==== ====
</TABLE>
Foreclosed Cable Systems Joint Ventures
The aggregate combined statements of operations of the foreclosed cable
systems joint ventures is presented below:
<TABLE>
COMBINED STATEMENTS OF OPERATIONS
(Amounts in Thousands)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
INCOME
Subscriber revenue $ 222 $ 115 $ 653 $ 239
Other income 3 1 7 3
----- ----- ----- -----
Total Income 225 116 660 242
----- ----- ----- -----
EXPENSES
Depreciation and amortization 65 15 200 46
Program services 76 19 209 55
Management fees to an affiliate of the
General Partner 10 5 29 10
General and administrative expenses 69 26 186 58
Provision for losses on accounts receivable 2 1 7 2
----- ----- ----- -----
Total Expenses 222 66 631 171
----- ----- ----- -----
Net income before income taxes 3 50 29 71
Income tax expense (6) -- (13) --
----- ----- ----- -----
Net Income (Loss) $ (3) $ 50 $ 16 $ 71
===== ===== ===== =====
</TABLE>
<PAGE>
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PHOENIX LEASING INCOME FUND VII AND SUBSIDIARY
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Results of Operations
Phoenix Leasing Income Fund VII and Subsidiary (the Partnership)
reported net income of $184,000 and $1,130,000 during the three and nine months
ended September 30, 1995, respectively, as compared to net income of $87,000 and
$458,000 during the same periods in the preceding year.
Total revenues decreased by $12,000 for the three months ended
September 30, 1995, but increased by $222,000 during the nine months ended
September 30, 1995, when compared to the same periods in the previous year.
The small decrease in total revenues during the three months ended
September 30, 1995 is due to small decreases in rental income, interest income
and other income. Cable subscriber revenues and equity in earnings from joint
ventures increased during the three months ended September 30, 1995, but they
did not increase enough to completely offset the decreases in rental income,
interest income and other income.
The improvement in total revenues of $222,000 during the nine months
ended September 30, 1995 is attributable to an increase in interest income from
notes receivable of $351,000 and an increase in earnings from joint ventures of
$114,000 for the nine months ended September 30, 1995, compared to the same
period in 1994. During the nine months ended September 30, 1995, the Partnership
received settlements on two defaulted notes receivable. The Partnership
recognized interest income from the receipt of a settlement on one of these
notes receivable. The settlement of the second note receivable represented only
a partial recovery of the outstanding note receivable balance.
The Partnership holds notes receivable from cable television system
operators and security monitoring companies with a net carrying value of
approximately $684,000 of which $151,000 is considered to be in impaired at
September 30, 1995. The Partnership has suspended the accrual of interest on
these notes and has provided an allowance for losses on notes. The General
Partner is currently working with the borrowers, other creditors and the
bankruptcy court in order to seek remedies that will maximize the recovery of
the Partnership's investment in these notes.
Partially offsetting the increase in interest income from notes
receivable is a decrease in rental income of $269,000 for the nine months ended
September 30, 1995, as compared to the same period in the prior year. The
decline in rental income, as well as depreciation expense with respect to the
Partnership's leasing activities, is the result of an overall reduction in the
size of the equipment portfolio due to ongoing sales. The aggregate original
cost of equipment owned directly by the Partnership, excluding its pro rata
interest in joint ventures, is $6.6 million at September 30, 1995, as compared
to $16.1 million at September 30, 1994.
Total expenses for the three and nine months ended September 30, 1995
decreased by $97,000 and $448,000, as compared to the same periods in 1994. The
decline is attributable to the decrease in depreciation and amortization,
interest expense, and general and administrative expenses. In addition to the
declining equipment portfolio factor, as previously discussed, the decrease in
depreciation expense is also the result of an increasing portion of the
equipment portfolio being fully depreciated. The absence of interest expense is
due to the Partnership having paid off its outstanding debt during 1994. One of
<PAGE>
Page 10 of 13
the factors contributing to the decrease in general and administrative expense
is a decrease in legal expense.
Because Phoenix Leasing Income Fund VII is in its liquidation stage, it
is not expected that the Partnership will acquire any additional equipment for
its leasing activities. As a result, revenues from leasing activities are
expected to continue to decline as the portfolio is liquidated and the remaining
equipment is released at lower rental rates.
Cable System
Cable subscriber revenues and program services expense remained
relatively the same for the three and nine months ended September 30, 1995
compared to the same periods in 1994. Cable subscriber revenues were $148,000
and $434,000 for the three and nine months ended September 30, 1995 compared to
$139,000 and $411,000 for the same periods in 1994. The Partnership assumed
ownership of the cable television system on October 28, 1993 at which time all
of the cable system's assets and liabilities, including the outstanding senior
debt, was transferred to the Partnership. The debt was paid off in full during
the third quarter of 1994 and as such no interest expense was incurred during
the three and nine months ended September 30, 1995, compared to $32,000 and
$99,000 for the same periods in 1994.
Joint Ventures
The Partnership has made investments in various equipment and financing
joint ventures along with other affiliated partnerships managed by the General
Partner for the purpose of spreading the risk of investing in certain equipment
leasing and financing transactions. These joint ventures are not currently
making any significant additional investments in new equipment leasing or
financing transactions. As a result, the earnings and cash flow from such
investments are anticipated to continue to decline as the portfolios are
re-leased at lower rental rates and eventually liquidated.
The increase in earnings from equipment joint ventures of $41,000 and
$114,000 for the three and nine months ended September 30, 1995, as compared to
the same periods in 1994, is the result of a new investment in an equipment
joint venture during the fourth quarter of 1994.
Liquidity and Capital Resources
During the nine months ended September 30, 1995, the net cash provided
by leasing, financing and cable television activities was $2,736,000 compared to
$737,000 for the same period in the prior year. The increase in net cash
provided during 1995, compared to 1994, is attributable to the increase in
principal payments from notes receivable of $998,000 and the decrease in
payments on accounts payable of $1,055,000. The increase in payments from notes
receivable during the nine months ended September 30, 1995 is due to the
Partnership receiving settlements from notes receivable from two cable
television system operators that had been in default.
During the nine months ended September 30, 1994, the Partnership paid
liquidation fees to the General Partner of $1.7 million which contributed
significantly to decreasing the net cash provided for the period. For the nine
months ended September 30, 1995, liquidation fees of $420,000 was paid to the
General Partner.
Distributions from joint ventures increased by $345,000 for the nine
months ended September 30, 1995 compared to the same period in the prior year.
This increase is due to a new investment in an equipment joint venture which was
made during the fourth quarter of 1994.
<PAGE>
Page 11 of 13
As of September 30, 1995, the Partnership owned equipment held for
lease with a purchase price of $1,927,000 and a net book value of $14,000
compared to $7,382,000 and $50,000, respectively at September 30, 1994. The
General Partner is actively engaged, on behalf of the Partnership, in
remarketing and selling the Partnership's off-lease equipment portfolio.
The Limited Partners received distributions of $1,286,000 for the nine
months ended September 30, 1995, as compared to distributions of $2,594,000 for
the nine months ended September 30, 1994. As a result, the cumulative cash
distributions to the Limited Partners are $79,981,000 and $78,694,000 at
September 30, 1995 and 1994, respectively. The General Partner did not receive
distributions during the nine months ended September 30, 1995 and 1994.
As the Partnership's asset portfolio continues to decline as a result
of the ongoing liquidation of assets, it is expected that the cash generated
from leasing operations will also decline. Due to the decrease in cash generated
by leasing and financing activities, the Partnership is no longer making
quarterly distributions to partners. The next distribution to partners is
expected to be made in January of 1996.
Cash on hand and cash generated from cable television, equipment
leasing and financing operations has been and is anticipated to continue to be
sufficient to meet the Consolidated Partnership's ongoing operational expenses.
<PAGE>
Page 12 of 13
PHOENIX LEASING INCOME FUND VII
September 30, 1995
Part II. Other Information.
Item 1. Legal Proceedings. Inapplicable.
Item 2. Changes in Securities. Inapplicable
Item 3. Defaults Upon Senior Securities. Inapplicable
Item 4. Submission of Matters to a Vote of Securities Holders.Inapplicable
Item 5. Other Information. Inapplicable
Item 6. Exhibits and Reports on 8-K:
a) Exhibits:
(27) Financial Data Schedule
b) Reports on 8-K: None
<PAGE>
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<TABLE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
PHOENIX LEASING INCOME FUND VII
(Registrant)
<CAPTION>
Date Title Signature
<S> <C> <C>
November 13, 1995 Chief Financial Officer, /S/ PARITOSH K. CHOKSI
- - ----------------- Senior Vice President ----------------------
and Treasurer of (Paritosh K. Choksi)
Phoenix Leasing Incorporated
General Partner
November 13, 1995 Senior Vice President, /S/ BRYANT J. TONG
- - ----------------- Financial Operations ------------------
(Principal Accounting Officer) (Bryant J. Tong)
and a Director of
Phoenix Leasing Incorporated
General Partner
November 13, 1995 Senior Vice President of /S/ GARY W. MARTINEZ
- - ----------------- Phoenix Leasing Incorporated --------------------
General Partner (Gary W. Martinez)
November 13, 1995 Partnership Controller /S/ MICHAEL K. ULYATT
- - ----------------- Phoenix Leasing Incorporated ---------------------
General Partner (Michael K. Ulyatt)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 3,327
<SECURITIES> 0
<RECEIVABLES> 821
<ALLOWANCES> 421
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 4,715
<DEPRECIATION> 3,552
<TOTAL-ASSETS> 7,164
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 5,601
<TOTAL-LIABILITY-AND-EQUITY> 7,164
<SALES> 0
<TOTAL-REVENUES> 2,254
<CGS> 0
<TOTAL-COSTS> 1,126
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 20
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,128
<INCOME-TAX> 2
<INCOME-CONTINUING> 1,130
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,130
<EPS-PRIMARY> 2.78
<EPS-DILUTED> 0
</TABLE>
