UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the United States Securities Exchange Act of 1934
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For The Quarter Ended March 31, 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 11
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COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
<S> <C> <C>
INDEX Page No.
Part I. FINANCIAL INFORMATION
Financial Statements
Balance Sheets as of March 31, 1996 and December 31, 1995 3
Statements of Operations For the Quarters Ended
March 31, 1996 and 1995 4
Statements of Cash Flows For the Quarters Ended
March 31, 1996 and 1995 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
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PART I. FINANCIAL INFORMATION
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Balance Sheets
Assets (Unaudited) (Audited)
3/31/96 12/31/95
<S> <C> <C>
Investment property, at cost (note 3):
Computer equipment $ 1,813,255 $ 1,814,444
Less accumulated depreciation 1,676,669 1,658,660
---------------- ----------------
Investment property, net 136,586 155,784
Cash and cash equivalents 59,289 71,333
Rents receivable, net (note 2) 36,501 25,414
Accounts receivable - affiliates, net (notes 2 & 4) 2,956 2,758
---------------- ----------------
Total assets $ 235,332 $ 255,289
================ ================
Liabilities and Partners' Equity
Liabilities:
Accounts payable and accrued expenses - affiliates (note 4) $ 31,261 $ 31,741
Accounts payable and accrued expenses 14,413 20,693
Distributions payable (note 5) 64,166 64,166
---------------- ----------------
Total liabilities 109,840 116,600
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Partners' equity:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 232,131 229,583
Cumulative cash distributions (634,103) (630,895)
Reallocation of capital accounts 400,972 400,312
---------------- ----------------
- -
---------------- ----------------
Limited Partners (24,383 units):
Capital contribution, net of
offering costs 10,484,690 10,484,690
Cumulative net income 4,410,494 4,362,073
Cumulative cash distributions (14,368,720) (14,307,762)
Reallocation of capital accounts (400,972) (400,312)
---------------- ----------------
125,492 138,689
---------------- ----------------
Total partners' equity 125,492 138,689
---------------- ----------------
Total liabilities and partners' equity $ 235,332 $ 255,289
================ ================
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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)
Statements of Operations
For the Quarters Ended March 31, 1996 and 1995
(Unaudited)
1996 1995
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Revenue:
Rental income on operating leases $ 95,163 $ 164,470
Earned income on direct financing leases - 2,272
Interest income 655 1,625
--------------- ---------------
Total revenue 95,818 168,367
--------------- ---------------
Costs and expenses:
Depreciation 19,198 101,996
Interest - 705
Related party expenses (note 4):
Management fees 5,957 10,745
General and administrative 19,694 16,829
Provision for doubtful accounts - 9,828
Net loss on sale of equipment - 1,505
--------------- ---------------
Total costs and expenses 44,849 141,608
--------------- ---------------
Net income $ 50,969 $ 26,759
=============== ===============
Net income per Limited Partnership Unit $ 1.99 $ 1.05
=============== ===============
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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)
Statements of Cash Flows
For the Quarters Ended March 31, 1996 and 1995
(Unaudited)
1996 1995
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Cash flows from operating activities:
Net income $ 50,969 $ 26,759
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Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation 19,198 101,996
Net loss on sale of equipment - 1,505
Provision for doubtful accounts - 9,828
Net (increase) decrease in current assets (11,285) 10,623
Net decrease in current liabilities (6,760) (8,683)
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Total adjustments 1,153 115,269
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Net cash provided by operating activities 52,122 142,028
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Cash flows from investing activities:
Proceeds from sales of investment property - 1,039
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Net cash provided by investing activities - 1,039
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Cash flows from financing activities:
Principal payments on long-term debt - (13,926)
Cash distributions to partners (64,166) (160,415)
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Net cash used in financing activities (64,166) (174,341)
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Net decrease in cash and cash equivalents (12,044) (31,274)
Cash and cash equivalents at beginning of period 71,333 227,793
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Cash and cash equivalents at end of period $ 59,289 $ 196,519
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Supplemental cash flow information:
Interest paid during the period $ - $ 705
============= =============
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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 Quarters Ended March 31, 1996 and March 31, 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 March 31, 1996 and December 31, 1995, the
allowance for doubtful accounts included in rents receivable was $2,426 and the
allowance for doubtful accounts included in accounts receivable - affiliates was
$60,000.
(3) Investment Property
At March 31, 1996, the Partnership owned computer equipment with a cost basis of
$1,813,255, 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 Quarters Ended March 31, 1996 and March 31, 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 three months ended
March 31, 1996 and 1995 are as follows:
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1996 1995
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Management fees $ 5,957 $ 10,745
Reimbursable expenses paid 20,571 16,795
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$ 26,528 $ 27,540
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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. 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) Distributions to Partners
For the three months ended March 31, 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
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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 three month
period ended March 31, 1996 compared to the same period in 1995.
The Partnership realized net income of $50,969 and $26,759 for the three month
periods ended March 31, 1996 and 1995, respectively. Rental income on operating
leases decreased $69,307 or 42% 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. Interest income has decreased $970 as a
result of lower average short-term investment balances held during the first
quarter of 1996.
Total costs and expenses decreased $96,759 or 68% between the three month
periods. The decrease in costs and expenses is primarily due to the decrease in
depreciation expense. Depreciation expense decreased due to a large portion of
the equipment portfolio becoming fully depreciated and a reduction in the
overall equipment portfolio. Management fees have decreased in relation to the
decline in rental income. General and administrative expenses have increased
$2,865 or 17%. 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 recorded net income per Limited Partnership Unit of $1.99 and
$1.05 for the quarters ended March 31, 1996 and 1995, respectively.
Liquidity and Capital Resources
For the three months ended March 31, 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 $321,528 and are to be received over the next two
years.
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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)
For the three months ended March 31, 1996, the Partnership's investing
activities resulted in the scrapping of fully depreciated computer equipment
with a cost basis of $1,189. 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.
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 March 31, 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 May 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)
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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
By: Arthur P. Beecher,
President
Date: May 14, 1996
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<ARTICLE> 5
<CIK> 0000751683
<NAME> COLUMBIA I-A 03/31/96
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 59,289
<SECURITIES> 0
<RECEIVABLES> 101,883
<ALLOWANCES> 62,426
<INVENTORY> 0
<CURRENT-ASSETS> 98,746
<PP&E> 1,813,255
<DEPRECIATION> 1,676,669
<TOTAL-ASSETS> 235,332
<CURRENT-LIABILITIES> 109,840
<BONDS> 0
<COMMON> 10,485,690
0
0
<OTHER-SE> (10,360,198)
<TOTAL-LIABILITY-AND-EQUITY> 235,332
<SALES> 95,163
<TOTAL-REVENUES> 95,818
<CGS> 0
<TOTAL-COSTS> 5,957
<OTHER-EXPENSES> 38,892
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 50,969
<INCOME-TAX> 0
<INCOME-CONTINUING> 50,969
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 50,969
<EPS-PRIMARY> 1.99
<EPS-DILUTED> 0
</TABLE>
