UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the United States Securities Exchange Act of
1934
_______________________
For The Quarter Ended June 30, 1995 Commission File No. 2-92914
COLUMBIA LEASE INCOME FUND A L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3263094
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Financial Center, 21st Floor, Boston, MA 02111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 482-8000
Not Applicable
(Former name, former address and former fiscal
year, if changed since last report)
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
--- ---
There are no Exhibits.
Page 1 of 11
(Page 2)
<TABLE>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
<CAPTION>
INDEX Page No.
<S> <C>
Part I. FINANCIAL INFORMATION
Financial Statements
Balance Sheets as of June 30, 1995 and
December 31, 1994 3
Statements of Operations For the Quarters Ended
June 30, 1995 and 1994 and the Six Months Ended
June 30, 1995 and 1994 4
Statements of Cash Flows For the Six Months Ended
June 30, 1995 and 1994 5
Notes to Financial Statements 6 - 7
Management's Discussion and Analysis of
Financial Condition and Results
of Operations 8 - 9
Part II. OTHER INFORMATION
Items 1 - 6 10
Signature 11
</TABLE>
(Page 3)
<TABLE>
PART I. FINANCIAL INFORMATION
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Balance Sheets
Assets
<CAPTION>
(Unaudited) (Audited)
6/30/95 12/31/94
<S> <C> <C>
Investment property, at cost (note 3):
Computer equipment $ 2,494,848 $ 2,700,427
Less accumulated depreciation 2,135,234 2,151,408
-------------------------
Investment property, net 359,614 549,019
Cash and cash equivalents 173,340 227,793
Net investment in direct financing leases - 58,080
Rents receivable, net (note 2) 39,191 9,667
Accounts receivable - affiliates, net
(note 2) 5,101 10,656
-------------------------
Total assets $ 577,246 $ 865,215
-------------------------
-------------------------
Liabilities and Partners' Equity
Liabilities:
Current portion of long-term
debt (note 5) $ 9,651 $ 37,801
Accounts payable and accrued
expenses - affiliates (note 4) 42,975 44,794
Accounts payable and accrued expenses 21,406 52,159
Distributions payable (note 6) 168,436 168,436
-------------------------
Total liabilities 242,468 303,190
-------------------------
Partners' equity:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 232,971 228,292
Cumulative cash distributions (624,483) (608,441)
Reallocation of capital accounts 390,512 379,149
-------------------------
- -
-------------------------
Limited Partners (24,383 units):
Capital contribution, net of
offering costs 10,484,690 10,484,690
Cumulative net income 4,426,446 4,337,542
Cumulative cash distributions (14,185,846) (13,881,058)
Reallocation of capital accounts (390,512) (379,149)
-------------------------
334,778 562,025
-------------------------
Total partners' equity 334,778 562,025
-------------------------
Total liabilities and partners' equity $ 577,246 $ 865,215
-------------------------
-------------------------
</TABLE>
See accompanying notes to financial statements.
(Page 4)
<TABLE>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Statements of Operations
(Unaudited)
<CAPTION>
Quarters Ended Six Months Ended
June 30, June 30,
-------------------- ---------------------
1995 1994 1995 1994
-------------------- ---------------------
Revenue:
<S> <C> <C> <C> <C>
Rental income on
operating leases $ 159,964 $ 198,794 $ 324,434 $ 374,794
Earned income on
direct financing leases 4,746 1,426 7,018 5,696
Interest income 1,439 1,605 3,064 6,042
Net gain on
sale of equipment 7,652 24,967 6,147 27,144
-------------------- ---------------------
Total revenue 173,801 226,792 340,663 413,676
-------------------- ---------------------
Costs and expenses:
Depreciation 84,864 116,025 186,860 215,067
Interest 407 1,562 1,112 3,398
Related party
expenses (note 4):
Management fees 10,211 15,435 20,956 26,444
General and
administrative 20,294 14,441 37,123 31,077
(Reversal of) provision
for doubtful accounts (8,799) 15,624 1,029 15,624
-------------------- ---------------------
Total costs
and expenses 106,977 163,087 247,080 291,610
-------------------- ---------------------
Net income $ 66,824 $ 63,705 $ 93,583 $ 122,066
-------------------- ---------------------
-------------------- ---------------------
Net income per Limited
Partnership Unit $ 2.60 $ 2.49 $ 3.65 $ 4.76
-------------------- ---------------------
-------------------- ---------------------
</TABLE>
See accompanying notes to financial statements.
(Page 5)
<TABLE>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Statements of Cash Flows
For the Six Months Ended June 30, 1995 and 1994
(Unaudited)
<CAPTION>
1995 1994
Cash flows from operating activities:
<S> <C> <C>
Net income $ 93,583 $ 122,066
-----------------------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 186,860 215,067
Provision for doubtful accounts 1,029 15,624
Net gain on sale of equipment (6,147) (27,144)
Net decrease (increase) in current assets 38,884 (6,563)
Net decrease in current liabilities (32,572) (31,996)
-----------------------
Total adjustments 188,054 164,988
-----------------------
Net cash provided by operating activities 281,637 287,054
-----------------------
Cash flows from investing activities:
Purchases of investment property - (255,203)
Proceeds from sales of investment property 12,890 27,144
-----------------------
Net cash provided by (used in)
investing activities 12,890 (228,059)
-----------------------
Cash flows from financing activities:
Principal payments on long-term debt (28,150) (25,863)
Cash distributions to partners (320,830) (561,579)
-----------------------
Net cash used in financing activities (348,980) (587,442)
-----------------------
Net decrease in cash and cash equivalents (54,453) (528,447)
-----------------------
Cash and cash equivalents
at beginning of period 227,793 716,108
-----------------------
Cash and cash equivalents at end of period $ 173,340 $ 187,661
-----------------------
-----------------------
Supplemental cash flow information:
Interest paid during the period $ 1,112 $ 3,398
-----------------------
-----------------------
Non-cash investing activities:
Reclassification of residual value of expired
direct financing lease to operating lease $ 4,198 $ -
-----------------------
-----------------------
</TABLE>
See accompanying notes to financial statements.
(Page 6)
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Notes to Financial Statements
(Unaudited)
(1) Organization
The foregoing financial statements of Columbia
Lease Income Fund A L.P. (the "Partnership") have
been prepared in accordance with the rules and
regulations of the Securities and Exchange
Commission for Form 10-Q and reflect all
adjustments which are, in the opinion of
management, necessary for a fair presentation of
the results for the interim periods presented.
Pursuant to such rules and regulations, certain
note disclosures which are normally required under
generally accepted accounting principles have been
omitted. It is recommended that these financial
statements be read in conjunction with the
Partnership's Annual Report on Form 10-K for the
year ended December 31, 1994.
(2) Significant Accounting Policies
Allowance for Doubtful Accounts
The financial statements include allowances for
estimated losses on receivable balances. The
allowances for doubtful accounts are based on past
write off experience and an evaluation of
potential uncollectible accounts within the
current receivable balances. Receivable balances
which are determined to be uncollectible are
charged against the allowance and subsequent
recoveries, if any, are credited to the allowance.
At June 30, 1995 and December 31, 1994, the
allowance for doubtful accounts included in rents
receivable was $2,426 and $1,397, respectively,
and $220,000 included in accounts receivable -
affiliates, respectively.
Reclassifications
Certain prior year financial statement items have
been reclassified to conform with the current
year's financial statement presentation.
(3) Investment Property
At June 30, 1995, the Partnership owned computer
equipment with a cost basis of $1,657,698 subject
to existing leases and equipment with a cost basis
of $837,150 in inventory awaiting re-lease or
sale. All purchases of computer equipment are
subject to a 2.5% acquisition fee paid to the
General Partner.
(Page 7)
(4) Related Party Transactions
Fees, commissions and other expenses paid or
accrued by the Partnership to the General Partner
or affiliates of the General Partner for the six
months ended June 30, 1995 and 1994 are as
follows:
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Equipment acquisition fees $ - $ 6,224
Management fees 20,956 26,444
Reimbursable expenses paid 39,595 12,944
----------------------
$60,551 $45,612
----------------------
----------------------
</TABLE>
Under the terms of the Partnership Agreement, the
General Partner is entitled to an equipment
acquisition fee of 2.5% of the purchase price paid
by the Partnership for the equipment. The General
Partner is also entitled to a management fee equal
to 6% of the monthly rental billings collected,
paid quarterly. In addition, the Partnership
reimburses the General Partner and its affiliates
for certain expenses incurred by them in
connection with the operation of the Partnership.
(5) Long-Term Debt
Long-term debt at June 30, 1995 consists of one
installment note payable with Concord Commercial
Corporation for $9,651 bearing interest at 8.50%,
collateralized by the equipment on lease. Such
non-recourse installment note payable matures in
1995.
(6) Distribution to Partners
For the six months ended June 30, 1995,
declarations of Distributable Cash were as
follows:
[CAPTION]
Limited Partners
----------------
<TABLE>
<S> <C> <C> <C> <C>
General
Date Paid Distribution Partner
Quarter Ended or Payable Per $500 Unit Totals Totals
- --------------------------------------------------------------------------
March 31, 1995 May 15, 1995 $ 6.25 $152,394 $8,021
June 30, 1995 August 15, 1995 $ 6.25 $152,394 $8,021
</TABLE>
(Page 8)
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operations
(Unaudited)
Results of Operations.
The following discussion relates to Partnership's
operations for the quarter and six month periods
ended June 30, 1995, compared to the same period
in 1994.
The Partnership realized net income of $66,824 and
$63,705 for the three month periods ended June 30,
1995, and 1994, respectively. Rental income on
operating leases decreased $38,830 or 20% between
the three month periods. The decrease is
primarily due to lower rental rates obtained on
equipment lease extensions and remarketings after
the initial lease term has expired and due to a
net decrease in the overall size of the equipment
portfolio. Earned income on direct financing
leases has increased due to the early termination
of the final direct financing lease whereby the
lessee paid the few remaining rent payments in
advance. Interest income decreased as result of
lower average short-term investment balances. The
net gain on sale of equipment decreased between
the three month periods primarily due to sales of
equipment carrying higher net book values.
Total costs and expenses decreased $56,110 or 35%
between the three month periods. The decrease in
costs and expenses is the result of lower
depreciation expense combined with the reversal of
provision for doubtful accounts. The decrease in
depreciation expense is due to a large portion of
the equipment portfolio becoming fully depreciated
and a net reduction in the overall equipment
portfolio. Management fees have decreased in
relation to the decline in rental income. General
and administrative expenses were lower in 1994 due
to an overaccrual in prior periods which was
reversed in the period ending June 30, 1994. The
reversal of the provision for doubtful accounts
was generated due to successful collection efforts
on delinquent accounts.
The Partnership realized net income of $93,583 and
$122,066 for the six month periods ended June 30,
1995 and 1994, respectively. Rental income on
operating leases decreased $50,360 or 14%. As
discussed in the quarter analysis above, the
decrease in rental income is primarily due to
lower rental rates obtained on equipment lease
extensions and remarketings after the initial
lease term has expired and due to a net decrease
in the overall size of the equipment portfolio.
Earned income on direct financing leases has
increased due to the early termination of the
final direct financing lease. Interest income
decrease due to the Partnership carrying lower
average short-term investment balances. As
mentioned above, net gain on sale of equipment
decreased from 1994 to 1995 due to the sale of
equipment carrying higher net book values.
Total costs and expenses decreased $44,530 or 16%
between the six month periods. The decrease in
costs and expenses is primarily the result of
lower depreciation expense. As discussed above,
the decrease in depreciation is due to a large
portion of the equipment portfolio becoming fully
depreciated and a reduction in the overall
equipment portfolio. Management fees have
decreased due to the decline in rental income.
General and administrative expenses were lower in
1994 due to an overaccrual in prior periods which
was reversed in the period ending June 30, 1994,
as stated above. For the year to date, the
Partnership had a net increase in its provision
for doubtful accounts for $1,029 to reserve for
uncollectible accounts.
(Page 9)
Liquidity and Capital Resources.
For the six months ended June 30, 1995, rental
revenue generated from operating leases was the
primary source of funds for the Partnership. As
equipment leases terminate, the General Partner
determines if the equipment will be extended to
the same lessee, remarketed to another lessee, or
if it is less marketable, sold. This decision is
made upon analyzing which option would generate
the most favorable results.
Rental income on operating leases will continue to
decrease due to two factors. The first factor is
the rate obtained when the original leases expire
and are remarketed at a lower rate. Typically,
the remarketed rates are lower due to the decrease
in useful life of the equipment. Secondly, the
increasing change of technology in the computer
industry usually decreases the demand for older
equipment, thus increasing the possibility of
obsolescence. Both of these factors together will
cause remarketed rates to be lower than original
rates. This decrease however, should not affect
the Partnership's ability to meet its future cash
requirements, including its long-term debt
obligations. To the extent that future cash flows
should be insufficient to meet the Partnership's
operating expenses and liabilities, additional
funds could be obtained through the sale of
equipment, or a reduction in the rate of cash
distributions. Future rental revenues from
operating leases amount to $351,734 and are to be
received over the next three years.
For the six months ended June 30, 1995, the
Partnership's investing activities resulted in
equipment sales with an depreciated cost basis of
$6,743, generating $12,890 in proceeds. The
Partnership has no material capital expenditure
commitments and will not purchase equipment in the
future as the Partnership has reached the end of
its reinvestment period.
The Partnership's financing activities resulted in
the paydown on long-term debt of $28,150 for the
six months ended June 30, 1995. The Partnership
will payoff its remaining long-term debt of $9,651
in 1995.
Cash distributions are currently at an annual
level of 5% per Limited Partnership Unit, or $6.25
per Limited Partnership Unit on a quarterly basis.
For the quarter ended June 30, 1995, the
Partnership declared a cash distribution of
$160,415, of which $8,021 was allocated to the
General Partner and $152,394 was allocated to the
Limited Partners. The distribution is payable on
August 15, 1995. The Partnership expects to
continue paying at or near this level.
The effects of inflation have not been significant
to the Partnership and are not expected to have a
material impact in the future periods.
(Page 10)
PART II. OTHER INFORMATION
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Item 1. Legal Proceedings
Response: None
Item 2. Changes in the Rights of the Partnership's
Security Holders
Response: None
Item 3. Defaults by the Partnership on its Senior
Securities
Response: None
Item 4. Results of Votes of Security Holders
Response: None
Item 5. Other Information
Response: None
Item 6. Exhibits and Reports on Form 8-K
Response:
A. None
B. None
(Page 11)
SIGNATURE
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.
COLUMBIA LEASE INCOME FUND A L.P.
(Registrant)
By: TLP Columbia Management Corporation,
its General Partner
Date: August 11, 1995
By: Arthur P. Beecher,
President
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751683
<NAME> COLUMBIA A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 173340
<SECURITIES> 0
<RECEIVABLES> 266718
<ALLOWANCES> 222426
<INVENTORY> 0
<CURRENT-ASSETS> 217632
<PP&E> 2494848
<DEPRECIATION> 2135234
<TOTAL-ASSETS> 577246
<CURRENT-LIABILITIES> 242468
<BONDS> 0
<COMMON> 10485690
0
0
<OTHER-SE> (10150912)
<TOTAL-LIABILITY-AND-EQUITY> 577246
<SALES> 331452
<TOTAL-REVENUES> 340663
<CGS> 0
<TOTAL-COSTS> 20956
<OTHER-EXPENSES> 223983
<LOSS-PROVISION> 1029
<INTEREST-EXPENSE> 1112
<INCOME-PRETAX> 93583
<INCOME-TAX> 0
<INCOME-CONTINUING> 93583
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 93583
<EPS-PRIMARY> 3.65
<EPS-DILUTED> 0
</TABLE>
