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 March 31, 1997 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>
<TABLE>
<CAPTION>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
INDEX Page No.
<S> <C> <C>
Part I. FINANCIAL INFORMATION
Financial Statements
Balance Sheets as of March 31, 1997 and December 31, 1996 3
Statements of Operations
Quarters Ended March 31, 1997 and 1996 4
Statements of Cash Flows
Quarters Ended March 31, 1997 and 1996 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>
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Balance Sheets
Assets (Unaudited) (Audited)
3/31/97 12/31/96
---------------- ----------------
<S> <C> <C>
Investment property, at cost (note 3):
Computer equipment $ 1,437,760 $ 1,444,033
Less accumulated depreciation 1,372,546 1,367,883
---------------- ----------------
Investment property, net 65,214 76,150
Cash and cash equivalents 66,416 60,959
Rents receivable, net (note 2) 13,410 27,132
Sales receivable 1,381 -
Accounts receivable - affiliates, net (note 4) - 8,956
---------------- ----------------
Total assets $ 146,421 $ 173,197
================ ================
Liabilities and Partners' Equity
Liabilities:
Accounts payable and accrued
expenses - affiliates (note 4) $ 30,002 $ 30,261
Accounts payable and accrued expenses 15,352 14,136
Distributions payable (note 5) 32,083 64,167
---------------- ----------------
Total liabilities 77,437 108,564
---------------- ----------------
Partners' equity:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 242,139 240,317
Cumulative cash distributions (646,935) (645,331)
Reallocation of capital accounts 403,796 404,014
---------------- ----------------
- -
---------------- ----------------
Limited Partners (24,383 units):
Capital contribution, net of
offering costs 10,484,690 10,484,690
Cumulative net income 4,600,641 4,566,029
Cumulative cash distributions (14,612,551) (14,582,072)
Reallocation of capital accounts (403,796) (404,014)
---------------- ----------------
68,984 64,633
---------------- ----------------
Total partners' equity 68,984 64,633
---------------- ----------------
Total liabilities and partners' equity $ 146,421 $ 173,197
================ ================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Statements of Operations
Quarters Ended March 31, 1997 and 1996
(Unaudited)
1997 1996
--------------- ---------------
<S> <C> <C>
Revenue:
Rental income on operating leases $ 72,493 $ 95,163
Interest income 724 655
Net gain on sale of equipment 1,381 -
--------------- ---------------
Total revenue 74,598 95,818
--------------- ---------------
Costs and expenses:
Depreciation 10,936 19,198
Related party expenses (note 4):
Management fees 7,516 5,957
General and administrative 22,263 19,694
Reversal of provision for doubtful accounts (2,551) -
--------------- ---------------
Total costs and expenses 38,164 44,849
--------------- ---------------
Net income $ 36,434 $ 50,969
=============== ===============
Net income per Limited Partnership Unit $ 1.42 $ 1.99
=============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Statements of Cash Flows
Quarters Ended March 31, 1997 and 1996
(Unaudited)
1997 1996
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 36,434 $ 50,969
------------- -------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 10,936 19,198
Net gain on sale of equipment (1,381) -
Reversal of provision for doubtful accounts (2,551) -
Net decrease (increase) in current assets 23,848 (11,285)
Net increase (decrease) in current liabilities 957 (6,760)
------------- -------------
Total adjustments 31,809 1,153
------------- -------------
Net cash provided by operating activities 68,243 52,122
------------- -------------
Cash flows from investing activities:
Proceeds from sales of investment property 1,381 -
------------- -------------
Net cash provided by investing activities 1,381 -
------------- -------------
Cash flows from financing activities:
Cash distributions to partners (64,167) (64,166)
------------- -------------
Net cash used in financing activities (64,167) (64,166)
------------- -------------
Net increase (decrease) in cash and cash equivalents 5,457 (12,044)
Cash and cash equivalents at beginning of period 60,959 71,333
------------- -------------
Cash and cash equivalents at end of period $ 66,416 $ 59,289
============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Notes to Financial Statements
Quarters Ended March 31, 1997 and March 31, 1996
(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, 1996.
(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, 1997 and December 31, 1996, the
allowance for doubtful accounts included in rents receivable was $2,733 and
$5,284, respectively.
(3) Investment Property
At March 31, 1997, the Partnership owned computer equipment with a depreciated
cost basis of $65,214, subject to existing leases. All purchases of computer
equipment are subject to a 2.5% acquisition fee paid to the General Partner.
<PAGE>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Notes to Financial Statements
Quarters Ended March 31, 1997 and March 31, 1996
(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 are as follows:
1997 1996
---- ----
Management fees $ 7,516 $ 5,957
Reimbursable expenses paid 22,640 20,571
------------ ------------
$ 30,156 $ 26,528
============ ============
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, 1997, the declaration of Distributable Cash
was as follows:
<TABLE>
<CAPTION>
Limited Partners
General
Date Paid Distribution Partner
Quarter Ended or Payable Per $ 500 Unit Total Total
- ------------- ---------- -------------- ----- -----
<S> <C> <C> <C> <C>
March 31, 1997 May 15, 1997 $ 1.25 $ 30,479 $ 1,604
</TABLE>
<PAGE>
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, 1997 compared to the same period in 1996.
The Partnership realized net income of $36,432 and $50,969 for the quarters
ended March 31, 1997 and 1996, respectively. Rental income on operating leases
decreased $22,670 or 24% 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 has expired and due to a decrease in
the size of the equipment portfolio. Interest income increased as a result of
higher average short-term investment balances held during the first quarter of
1997. The net gain on sale of equipment of $1,381 is attributed to sales of
fully depreciated equipment in the current quarter.
Total costs and expenses decreased $6,685 or 15% between the three month
periods. The decrease in costs and expenses is primarily due to the decline in
depreciation expense. Depreciation expense decreased due to a large portion of
the equipment portfolio becoming fully depreciated, and due to a reduction in
the overall equipment portfolio. Although rental income declined, management
fees increased $1,559 or 26% due to the increased collection of delinquent rents
receivable in the current quarter. General and administrative expense increased
$2,569 or 13%. 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 reversal of
provision for doubtful accounts in the current quarter is due to the successful
collection efforts of delinquent rents receivable.
The Partnership recorded net income per Limited Partnership Unit of $1.42
and $1.99 for the quarters ended March 31, 1997 and 1996, respectively.
Liquidity and Capital Resources
For the three months ended March 31, 1997, 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 sold. This
decision is made upon analyzing which option generates the most favorable
result.
<PAGE>
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operation
(Unaudited)
Rental income on operating leases has continued to decrease due to two factors.
First, lower rates are obtained on 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. Second, 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 $77,389 and are to be received over the next four years.
For the three months ended March 31, 1997, the Partnership's investing
activities generated $1,381 in sales proceeds on the sale of fully depreciated
equipment with an original cost basis of $6,273. 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 1% per Limited
Partnership Unit, or $1.25 per Limited Partnership Unit on a quarterly basis.
For the quarter ended March 31, 1997, the Partnership declared a cash
distribution of $32,083, of which $1,604 was allocated to the General Partner
and $30,479 was allocated to the Limited Partners. The distribution will be paid
on May 15, 1997. 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.
<PAGE>
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>
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 12, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751683
<NAME> COLUMBIA LEASE INCOME FUND A LP FDS 3/31/97
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 66,416
<SECURITIES> 0
<RECEIVABLES> 17,524
<ALLOWANCES> 2,733
<INVENTORY> 0
<CURRENT-ASSETS> 81,207
<PP&E> 1,437,760
<DEPRECIATION> 1,372,546
<TOTAL-ASSETS> 146,421
<CURRENT-LIABILITIES> 77,437
<BONDS> 0
0
0
<COMMON> 10,485,690
<OTHER-SE> (10,416,706)
<TOTAL-LIABILITY-AND-EQUITY> 146,421
<SALES> 72,493
<TOTAL-REVENUES> 74,598
<CGS> 0
<TOTAL-COSTS> 7,516
<OTHER-EXPENSES> 33,199
<LOSS-PROVISION> (2,551)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 36,434
<INCOME-TAX> 0
<INCOME-CONTINUING> 36,434
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 36,434
<EPS-PRIMARY> 1.42
<EPS-DILUTED> 0
</TABLE>
