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, 1996 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 12
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COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
INDEX Page No.
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Part I. FINANCIAL INFORMATION
Financial Statements
Balance Sheets as of June 30, 1996 and December 31, 1995 3
Statements of Operations For the Quarters Ended
June 30, 1996 and 1995 and For the Six Months Ended
June 30, 1996 and 1995 4
Statements of Cash Flows For the Six Months Ended
June 30, 1996 and 1995 5
Notes to Financial Statements 6 - 7
Management's Discussion and Analysis of Financial Condition and
Results of Operations 8 - 10
Part II. OTHER INFORMATION
Items 1 - 6 11
Signature 12
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PART I. FINANCIAL INFORMATION
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Balance Sheets
Assets
(Unaudited) (Audited)
6/30/96 12/31/95
<S> <C> <C>
Investment property, at cost (note 3):
Computer equipment $ 1,493,409 $ 1,814,444
Less accumulated depreciation 1,376,018 1,658,660
---------------- ----------------
Investment property, net 117,391 155,784
Cash and cash equivalents 137,320 71,333
Rents receivable, net (note 2) 16,127 25,414
Accounts receivable - affiliates, net (notes 2 and 4) 315 2,758
---------------- ----------------
Total assets $ 271,153 $ 255,289
================ ================
Liabilities and Partners' Equity
Liabilities:
Accounts payable and accrued expenses - affiliates (note 4) $ 29,672 $ 31,741
Accounts payable and accrued expenses 29,091 20,693
Distributions payable (note 5) 64,166 64,166
---------------- ----------------
Total liabilities 122,929 116,600
---------------- ----------------
Partners' equity:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 236,476 229,583
Cumulative cash distributions (637,311) (630,895)
Reallocation of capital accounts 399,835 400,312
---------------- ----------------
- -
---------------- ----------------
Limited Partners (24,383 units):
Capital contribution, net of
offering costs 10,484,690 10,484,690
Cumulative net income 4,493,047 4,362,073
Cumulative cash distributions (14,429,678) (14,307,762)
Reallocation of capital accounts (399,835) (400,312)
---------------- ----------------
148,224 138,689
---------------- ----------------
Total partners' equity 148,224 138,689
---------------- ----------------
Total liabilities and partners' equity $ 271,153 $ 255,289
================ ================
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See accompanying notes to financial statements.
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<CAPTION>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Statements of Operations
(Unaudited)
Quarters Ended Six Months Ended
June 30, June 30,
------------------------------- --------------------------------
1996 1995 1996 1995
------------------------------- --------------------------------
<S> <C> <C> <C> <C>
Revenue:
Rental income on operating leases $ 62,272 $ 159,964 $ 157,435 $ 324,434
Earned income on
direct financing leases - 4,746 - 7,018
Interest income 1,427 1,439 2,082 3,064
Net gain on sale
of equipment 11,599 7,652 11,599 6,147
------------ ------------- ------------ ------------
Total revenue 75,298 173,801 171,116 340,663
------------ ------------- ------------ ------------
Costs and expenses:
Depreciation 19,195 84,864 38,393 186,860
Interest - 407 - 1,112
Related party expenses (note 4):
Management fees 6,607 10,211 12,564 20,956
General and administrative 22,598 20,294 42,292 37,123
(Reversal of) provision for
doubtful accounts (60,000) (8,799) (60,000) 1,029
------------ ------------- ------------ ------------
Total costs and expenses (11,600) 106,977 33,249 247,080
------------ ------------- ------------ ------------
Net income $ 86,898 $ 66,824 $ 137,867 $ 93,583
============ ============= ============ ============
Net income per Limited
Partnership Unit $ 3.38 $ 2.60 $ 5.37 $ 3.65
============ ============= ============ ============
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See accompanying notes to financial statements.
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<CAPTION>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Statements of Cash Flows
For the Six Months Ended June 30, 1996 and 1995
(Unaudited)
1996 1995
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Cash flows from operating activities:
Net income $ 137,867 $ 93,583
--------------- ----------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 38,393 186,860
(Reversal of) provision for doubtful accounts (60,000) 1,029
Net gain on sale of equipment (11,599) (6,147)
Net decrease in current assets 71,730 38,884
Net increase (decrease) in current liabilities 6,329 (32,572)
--------------- ----------------
Total adjustments 44,853 188,054
--------------- ----------------
Net cash provided by operating activities 182,720 281,637
--------------- ----------------
Cash flows from investing activities:
Proceeds from sales of investment property 11,599 12,890
--------------- ----------------
Net cash provided by investing activities 11,599 12,890
--------------- ----------------
Cash flows from financing activities:
Principal payments on long-term debt - (28,150)
Cash distributions to partners (128,332) (320,830)
--------------- ----------------
Net cash used in financing activities (128,332) (348,980)
--------------- ----------------
Net increase (decrease) in cash and cash equivalents 65,987 (54,453)
Cash and cash equivalents at beginning of period 71,333 227,793
--------------- ----------------
Cash and cash equivalents at end of period $ 137,320 $ 173,340
=============== ================
Supplemental cash flow information:
Interest paid during the period $ - $ 1,112
=============== ================
Non-cash investing activities:
Reclassification of residual value of expired
direct financing lease to operating lease $ - $ 4,198
=============== ================
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See accompanying notes to financial statements.
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COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Notes to Financial Statements
For the Six Months Ended June 30, 1996 and June 30, 1995
(Unaudited)
(1) Basis of Presentation
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, 1995.
(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, 1996 and December 31, 1995, the
allowance for doubtful accounts included in rents receivable was $2,426,
respectively, and the allowance for doubtful accounts included in accounts
receivable - affiliates was $0 and $60,000, respectively.
(3) Investment Property
At June 30, 1996, the Partnership owned computer equipment with a depreciated
cost basis of $117,391, subject to existing leases. All purchases of computer
equipment are subject to a 2.5% acquisition fee paid to the General Partner.
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COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Notes to Financial Statements
For the Six Months Ended June 30, 1996 and June 30, 1995
(Unaudited)
(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, 1996 and 1995 are as follows:
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1996 1995
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Management fees $ 12,564 $ 20,956
Reimbursable expenses paid 45,457 39,595
------------ ------------
$ 58,021 $ 60,551
============ ============
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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, paid monthly, based
on rents received. The Partnership reimburses the General Partner and its
affiliates for certain expenses incurred by them in connection with the
operation of the Partnership.
(5) Distributions to Partners
For the six months ended June 30, 1996, the declaration of Distributable Cash
was as follows:
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Limited Partners
General
Date Paid Distribution Partner
Quarter Ended or Payable Per $ 500 Unit Total Total
- -------------- ---------- -------------- ----- -----
<S> <C> <C> <C> <C>
March 31, 1996 May 15, 1996 $ 2.50 $ 60,958 $ 3,208
June 30, 1996 August 15, 1996 $ 2.50 $ 60,958 $ 3,208
</TABLE>
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COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operation
(Unaudited)
Results of Operations
The following discussion relates to Partnership's operations for the quarter
and six month periods ended June 30, 1996 compared to the same periods in 1995.
The Partnership realized net income of $86,898 and $66,824 for the three month
periods ended June 30, 1996 and 1995, respectively. Rental income on operating
leases decreased $97,692 or 61% between the three month periods. The decrease in
rental income is due to lower rental rates obtained on equipment lease
extensions and remarketings after the initial lease term expires and due to a
decrease in the size of the equipment portfolio. No earned income on the direct
financing leases has been recognized during the current quarter due to the
complete allocation of the lease payments to the fair market value of the
equipment over the lease terms in 1995. The net gain on sale of equipment
increased $3,947 or 52% between the three month periods primarily due to sales
of fully depreciated equipment during the current quarter.
Total costs and expenses decreased $118,577 or 111% 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.
Depreciation expense decreased $65,669 or 77% due to a large portion of the
equipment portfolio becoming fully depreciated and a reduction in the overall
equipment portfolio. The $60,000 reversal of the provision for doubtful accounts
was generated due to the successful collection efforts on a sale proceeds
receivable that had been fully reserved in a prior period. Management fees have
decreased in relation to the decline in rental income. General and
administrative expenses have increased $2,304 or 11%. A major factor
contributing to this increase is that salaries and expenses of the partnership
accounting and reporting personnel of the General Partner, which are
reimbursable by the various partnerships under management, are being allocated
over a diminishing number of partnerships.
The Partnership realized net income of $137,867 and $93,583 for the six month
periods ended June 30, 1996 and 1995, respectively. Rental income on operating
leases decreased $166,999 or 52%. 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 decrease in the overall size of the equipment portfolio. No
earned income on the direct financing leases has been recognized during the
current year due to the complete allocation of the lease payments to the fair
market value of the equipment over the lease terms in 1995. Interest income
decreased during the first six months of 1996, due to the Partnership carrying
lower average short-term investment balances. As mentioned above, net gain on
sale of equipment increased from 1995 to 1996 due to the sale of fully
depreciated equipment during 1996.
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COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operation
(Unaudited)
Total costs and expenses decreased $213,831 or 87% between the six month
periods. As was discussed in the quarter analysis above, the decrease in costs
and expenses is primarily the result of lower depreciation expense combined with
the current year reversal of provision for doubtful accounts. The decrease in
depreciation expense of $148,467 is due to a large portion of the equipment
portfolio becoming fully depreciated and a reduction in the overall equipment
portfolio. The $60,000 reversal of the provision for doubtful accounts in the
current year, reflects the successful collection of a sales proceed receivable,
that had been fully reserved in a prior period. Management fees have decreased
as a result of the decline in rental income. General and administrative expenses
increased $5,169 or 14% between the six month periods. As discussed in the
quarter analysis above, a major factor impacting the increase in general and
administrative expenses is that salaries and expenses of the partnership
accounting and reporting personnel of the General Partner, which are
reimbursable by the various partnerships under management, are being allocated
over a diminishing number of partnerships.
The Partnership recorded net income per Limited Partnership Unit of $3.38 and
$2.60 for the quarters ended June 30, 1996 and 1995, respectively, and $5.37 and
$3.65 for the six month periods ended June 30, 1996 and 1995, respectively.
Liquidity and Capital Resources
For the six months ended June 30, 1996, 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 lower rate obtained due to the remarketing of existing
equipment upon the expiration of the original lease. 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. 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 $218,445 and are to be received over the next two
years.
For the six months ended June 30, 1996, the Partnership's investing activities
resulted in sales of fully depreciated computer equipment generating proceeds of
$11,599. 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.
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COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operation
(Unaudited)
Cash distributions are currently at an annual level of 2% per Limited
Partnership Unit, or $2.50 per Limited Partnership Unit on a quarterly basis.
For the quarter ended June 30, 1996, the Partnership declared a cash
distribution of $64,166, of which $3,208 was allocated to the General Partner
and $60,958 was allocated to the Limited Partners. The distribution will be paid
on August 15, 1996. 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 future periods.
On January 9, 1996, TLP Holding LLC purchased all the common stock of TLP
Leasing Programs, Inc. from CMI Holding Co. Under the new ownership, it is
expected that TLP Leasing Programs, Inc. will continue to operate in the same
manner of business as it has in the past.
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PART II. OTHER INFORMATION
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
<S> <C>
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
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SIGNATURE
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.
COLUMBIA LEASE INCOME FUND A L.P.
(Registrant)
By: TLP Columbia Management Corporation,
its General Partner
Date: August 14, 1996
By: Arthur P. Beecher,
President
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751683
<NAME> COLUMBIA LEASE INCOME FUND A L.P. FDS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 137,320
<SECURITIES> 0
<RECEIVABLES> 18,868
<ALLOWANCES> 2,426
<INVENTORY> 0
<CURRENT-ASSETS> 153,762
<PP&E> 1,493,409
<DEPRECIATION> 1,376,018
<TOTAL-ASSETS> 271,153
<CURRENT-LIABILITIES> 122,929
<BONDS> 0
<COMMON> 10,485,690
0
0
<OTHER-SE> (10,337,466)
<TOTAL-LIABILITY-AND-EQUITY> 271,153
<SALES> 157,435
<TOTAL-REVENUES> 171,116
<CGS> 0
<TOTAL-COSTS> 12,564
<OTHER-EXPENSES> 80,685
<LOSS-PROVISION> (60,000)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 137,867
<INCOME-TAX> 0
<INCOME-CONTINUING> 137,867
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 137,867
<EPS-PRIMARY> 5.37
<EPS-DILUTED> 0
</TABLE>
