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
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Quarter Ended September 30, 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
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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 September 30, 1997 and December 31, 1996 3
Statements of Operations
Quarters Ended September 30, 1997 and 1996 and
Nine Months Ended September 30, 1997 and 1996 4
Statements of Cash Flows
Nine Months Ended September 30, 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
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PART I. FINANCIAL INFORMATION
COLUMBIA LEASE INCOME FUND A L.P.
(A Delaware Limited Partnership)
Balance Sheets
Assets
(Unaudited) (Audited)
9/30/97 12/31/96
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Investment property, at cost (note 3):
Computer equipment $ 1,404,099 $ 1,444,033
Less accumulated depreciation 1,360,080 1,367,883
--------------- ---------------
Investment property, net 44,019 76,150
Cash and cash equivalents 37,700 60,959
Rents receivable, net (note 2) 2,207 27,132
Accounts receivable - affiliates - 8,956
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Total assets $ 83,926 $ 173,197
=============== ===============
Liabilities and Partners' Equity
Liabilities:
Accounts payable and accrued
expenses - affiliates (note 4) $ 25,476 $ 30,261
Accounts payable and accrued expenses 18,969 14,136
Distributions payable (note 5) - 64,167
--------------- ---------------
Total liabilities 44,445 108,564
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Partners' equity:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 243,872 240,317
Cumulative cash distributions (650,143) (645,331)
Reallocation of capital accounts 405,271 404,014
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- -
--------------- ---------------
Limited Partners (24,383 units):
Capital contribution, net of
offering costs 10,484,690 10,484,690
Cumulative net income 4,633,571 4,566,029
Cumulative cash distributions (14,673,509) (14,582,072)
Reallocation of capital accounts (405,271) (404,014)
--------------- ---------------
39,481 64,633
--------------- ---------------
Total partners' equity 39,481 64,633
--------------- ---------------
Total liabilities and partners' equity $ 83,926 $ 173,197
=============== ===============
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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
(Unaudited)
Quarters Ended Nine Months Ended
September 30, September 30,
------------------------------- --------------------------------
1997 1996 1997 1996
------------------------------- --------------------------------
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Revenue:
Rental income on operating leases $ 58,499 $ 84,408 $ 194,880 $ 241,843
Interest income 590 1,266 2,047 3,348
Other income - - 50 -
Net gain (loss) on sale
of equipment - (1,131) 1,631 10,468
------------ ------------- ------------ ------------
Total revenue 59,089 84,543 198,608 255,659
------------ ------------- ------------ ------------
Costs and expenses:
Depreciation 10,261 18,390 32,132 56,783
Related party expenses (note 4):
Management fees 5,183 6,503 18,679 19,067
General and administrative 31,089 21,199 81,984 63,491
Reversal of provision for
doubtful accounts (2,083) - (5,284) (60,000)
------------ ------------- ------------ ------------
Total costs and expenses 44,450 46,092 127,511 79,341
------------ ------------- ------------ ------------
Net income $ 14,639 $ 38,451 $ 71,097 $ 176,318
============ ============= ============ ============
Net income per Limited
Partnership Unit $ 0.57 $ 1.50 $ 2.77 $ 6.87
============ ============= ============ ============
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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
Nine Months Ended September 30, 1997 and 1996
(Unaudited)
1997 1996
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Cash flows from operating activities:
Net income $ 71,097 $ 176,318
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Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 32,132 56,783
Reversal of provision for doubtful accounts (5,284) (60,000)
Net gain on sale of equipment (1,631) (10,468)
Net decrease in current assets 39,165 74,908
Net increase (decrease) in current liabilities 47 (4,331)
--------------- ----------------
Total adjustments 64,429 56,892
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Net cash provided by operating activities 135,526 233,210
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Cash flows from investing activities:
Proceeds from sales of investment property 1,631 15,548
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Net cash provided by investing activities 1,631 15,548
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Cash flows from financing activities:
Cash distributions to partners (160,416) (192,497)
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Net cash used in financing activities (160,416) (192,497)
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Net (decrease) increase in cash and cash equivalents (23,259) 56,261
Cash and cash equivalents at beginning of period 60,959 71,333
--------------- ----------------
Cash and cash equivalents at end of period $ 37,700 $ 127,594
=============== ================
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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
Nine Months Ended September 30, 1997 and September 30, 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 September 30, 1997 and December 31, 1996,
the allowance for doubtful accounts included in rents receivable was $0 and
$5,284, respectively.
(3) Investment Property
At September 30, 1997, the Partnership owned computer equipment with a
depreciated cost basis of $44,019, 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
Nine Months Ended September 30, 1997 and September 30, 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 nine months ended
September 30 are as follows:
1997 1996
---- ----
Management fees $ 18,679 $ 19,067
Reimbursable expenses paid 63,002 59,630
----------- -----------
$ 81,681 $ 78,697
=========== ===========
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 nine months ended September 30, 1997, 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, 1997 May 15, 1997 $ 1.25 $ 30,479 $ 1,604
June 30, 1997 August 15, 1997 $ 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 Operations
(Unaudited)
Results of Operations
The following discussion relates to the Partnership's operations for the quarter
and nine months ended September 30, 1997, in comparison to the same periods
ended September 30, 1996.
The Partnership realized net income of $14,639 and $38,451 for the quarters
ended September 30, 1997 and 1996, respectively. Rental income on operating
leases decreased $25,909 or 31% 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. Interest income decreased as a
result of lower average short-term cash balances held during the current
quarter.
Total costs and expenses decreased $1,642 or 4% between the three month periods.
Depreciation expense decreased $8,129 or 44% due to a large portion of the
equipment portfolio becoming fully depreciated and due to a reduction in the
overall equipment portfolio. Management fees decreased due to the decline in
rental income. General and administrative expenses increased $9,890. A major
factor contributing to this increase is that the reimbursable salaries and
expenses of the partnership accounting and reporting personnel of the General
Partner are being allocated over a diminishing number of partnerships under
management. The $2,083 reversal of the provision for doubtful accounts in the
current quarter is due to the successful collection efforts on delinquent
accounts.
The Partnership realized net income of $71,097 and $176,318 for the nine months
ended September 30, 1997 and 1996, respectively. Rental income on operating
leases decreased $46,963 or 19%. 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.
Interest income decreased $1,301 from 1996 as a result of lower cash balances
held during the current nine month period. Other income in 1997 is the result of
a sales tax refund received from the State of Colorado. The decrease in net gain
on sale of equipment in 1997 is due to a smaller number of equipment sales
carrying high net book values.
Total costs and expenses increased $48,170 or 61% during the nine month periods.
The increase in costs and expenses is primarily the result of the $60,000
reversal of provision for doubtful accounts in 1996. The $24,651 or 43% decrease
in depreciation expense is primarily due to a large portion of the equipment
portfolio becoming fully depreciated and a reduction in the overall equipment
portfolio. Management fees decreased due to the decline in rental income.
General and administrative expenses increased $18,493 or 29% mainly due to an
increase in the allocable salaries of the partnership accounting and reporting
personnel of the General Partner during the current year. The $5,284 reversal of
the provision for doubtful accounts is the result of successful collection
efforts of delinquent accounts in 1997.
The Partnership recorded net income per Limited Partnership Unit of $0.57 and
$1.50 for the quarters ended September 30, 1997 and 1996, respectively, and
$2.77 and $6.87 for the nine month periods ended September 30, 1997 and 1996,
respectively.
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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 Operations
(Unaudited)
Liquidity and Capital Resources
For the nine months ended September 30, 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.
Rental income on operating leases has continued to decrease due to two factors.
First, lower rates are usually 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 cause remarketed rates to be lower than original
rates.
For the nine months ended September 30, 1997, the Partnership's investing
activities generated $1,631 in sales proceeds on the sale of fully depreciated
equipment with an original cost basis of $39,934. 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
effects of inflation have not been significant to the Partnership and are not
expected to have a material impact in future periods.
During the third quarter of 1997, the General Partner announced its intentions
of winding down the operations of the Partnership. It is anticipated that all of
the assets will be liquidated by December 31, 1997. The proceeds generated from
the sale of the assets will be used to settle all outstanding liabilities and to
make a final distribution during February, 1998.
Cash distributions are currently halted in an effort to minimize costs and
accumulate cash in anticipation of a final distribution to the Partners once the
Partnership has been liquidated.
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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
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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: November 7, 1997
By: Arthur P. Beecher,
President
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751683
<NAME> COLUMBIA LEASE INCOME FUND A FDS 9/30/97
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 37,700
<SECURITIES> 0
<RECEIVABLES> 2,207
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 39,907
<PP&E> 1,404,099
<DEPRECIATION> 1,360,080
<TOTAL-ASSETS> 83,926
<CURRENT-LIABILITIES> 44,445
<BONDS> 0
10,485,690
0
<COMMON> 0
<OTHER-SE> (10,446,209)
<TOTAL-LIABILITY-AND-EQUITY> 83,926
<SALES> 194,880
<TOTAL-REVENUES> 198,608
<CGS> 0
<TOTAL-COSTS> 18,679
<OTHER-EXPENSES> 114,116
<LOSS-PROVISION> (5,284)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 71,097
<INCOME-TAX> 0
<INCOME-CONTINUING> 71,097
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 71,097
<EPS-PRIMARY> 2.77
<EPS-DILUTED> 0
</TABLE>
