UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 For the fiscal quarter ended
March 31, 1995.
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
Commission file number 0-14599
-----------------------
PLM Transportation Equipment Partners VIIC 1985
Income Fund (Exact name of registrant as specified
in its charter)
California 94-2946248
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Market, Steuart Street Tower
Suite 900, San Francisco, CA 94105-1301
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code (415) 974-1399
-----------------------
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 ______
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIB 1985 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
March 31, December 31,
1995 1994
Transportation equipment held for
operating leases $ 4,987,719 $ 5,228,048
Less accumulated depreciation (4,316,704) (4,449,835)
----------- -----------
Net equipment 671,015 778,213
Cash and cash equivalents 348,434 358,864
Restricted cash 7,903 7,600
Accounts receivable, net of allowance for
doubtful accounts of $44,966 in 1995 and
$1,942 in 1994 105,276 136,481
Prepaid insurance 2,519 3,286
----------- -----------
Total assets $ 1,135,147 $ 1,284,444
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 5,908 $ 18,764
Accounts payable 16,213 32,478
Prepaid deposits and engine reserves 23,493 24,552
------------ ------------
Total liabilities 45,614 75,794
Partners' capital (deficit):
Limited Partners (22,276 units) 1,176,687 1,294,613
General Partner (87,154) (85,963)
------------ ------------
Total partners' capital 1,089,533 1,208,650
------------ ------------
Total liabilities and partners'capital $ 1,135,147 $ 1,284,444
============ ============
See accompanying notes to financial
statements.
1
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIB 1985 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
For the three months
ended March 31,
1995 1994
Revenues:
Lease revenue $ 183,663 $ 174,525
Interest and other income 5,326 2,088
Gain (loss) on disposition
of equipment 12,830 (2,397)
---------- ----------
Total revenues 201,819 174,216
Expenses:
Depreciation 71,856 76,015
Management fees to affiliate 13,923 15,341
Bad debt expense 44,639 13,118
Repairs and maintenance 44,422 21,292
General and administrative
expenses to affiliates 35,839 27,754
Other general and administrative
expenses 11,211 12,914
---------- ----------
Total expenses 221,890 166,434
---------- ----------
Net income (loss) $ (20,071) $ 7,782
========== ==========
Partners'share of net income (loss):
Limited Partners-99% $ (19,870) $ 7,704
General Partner-1% (201) 78
---------- ----------
Total $ (20,071) $ 7,782
========== ==========
Net income (loss) per Limited Partnership
Unit (22,276 units) $ (0.89) $ 0.35
========== ==========
Cash distributions $ 99,046 $ 145,267
========== ==========
Cash distribution per
Limited Partnership Unit $ 4.40 $ 6.46
========== ==========
See accompanying notes to financial
statements.
2
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIB 1985 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period from December 31, 1993 to March 31, 1995
(Unaudited)
Limited General
Partners Partner Total
Partners' capital (deficit)
at December 31, 1993 $ 1,677,478 $ (82,096) $ 1,595,382
Net income 87,802 887 88,689
Cash distributions (470,667) (4,754) (475,421)
------------ ------------ ------------
Partners' capital (deficit)
at December 31, 1994 1,294,613 (85,963) 1,208,650
Net loss (19,870) (201) (20,071)
Cash distributions (98,056) (990) (99,046)
------------ ------------ ------------
Partners' capital (deficit)
at March 31, 1995 $ 1,176,687 $ (87,154) $ 1,089,533
============ ============ ============
See accompanying notes to financial
statements.
3
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIB 1985 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the three months
ended March 31,
1995 1994
Operating Activities:
Net income (loss) $ (20,071) $ 7,782
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
(Gain) loss on disposition of equipment (12,830) 2,397
Depreciation 71,856 76,015
Changes in operating assets and liabilities:
Restricted cash (303) (70)
Accounts receivable, net 31,205 36,823
Prepaid insurance 767 1,711
Due to affiliates (12,856) 3,622
Accounts payable (16,265) (17,315)
Prepaid deposits and engine reserves (1,059) (1,163)
---------- ----------
Net Cash provided by operating activities 40,444 109,802
Investing Activities:
Proceeds from disposition of equipment 48,172 13,048
---------- ----------
Net Cash provided by investing activities 48,172 13,048
---------- ----------
Financing Activities:
Cash distributions paid to partners (99,046) (145,267)
---------- ----------
Net Cash used in financing activities (99,046) (145,267)
---------- ----------
Net decrease in cash and cash equivalents (10,430) (22,417)
Cash and cash equivalents at beginning of period 358,864 386,179
---------- ----------
Cash and cash equivalents at end of period $ 348,434 $ 363,762
========== ==========
See accompanying notes to financial
statements.
4
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIB 1985 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
1. Opinion of Management
In the opinion of the management of PLM Financial Services
Inc., the General Partner, the accompanying unaudited financial
statements contain all adjustments necessary, consisting
primarily of normal recurring accruals, to present fairly the
Partnership's financial position as of March 31, 1995, the
statements of operations and cash flows for the three months
ended March 31, 1995 and 1994. Certain information and footnote
disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles
have been condensed or omitted from the accompanying financial
statements. For further information, reference should be made
to the financial statements and notes thereto included in the
Partnership's Annual Report on Form 10-K for the year ended
December 31, 1994, on file at the Securities and Exchange
Commission.
2. Reclassifications
Certain amounts in the 1994 financial statements have been
reclassified to conform to the 1995 presentation.
3. Equipment
Equipment held for operating leases is stated at cost. The
components of equipment are as follows:
Equipment held for operation leases:
March 31, December 31,
1995 1994
Rail equipment $ 318,649 $ 318,649
Marine containers 140,496 151,167
Aircraft 908,733 908,733
Trailers 3,619,841 3,849,499
----------- -----------
4,987,719 5,228,048
Less accumulated depreciation (4,316,704) (4,449,835)
----------- -----------
Net equipment $ 671,015 $ 778,213
=========== ===========
With the exception of one railcar and seven trailers, all of the equipment
owned by the Partnership was either on lease or operating in
PLM-affiliated short-term rental facilities as of March 31, 1995. The net
book value of equipment off-lease was $32,880. At December 31, 1994, all
equipment was on lease except one railcar. The net book value of the
railcar off lease at December 31, 1994 was $16,750.
5
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIB 1985 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
3. Equipment (continued)
During the three months ended March 31, 1995, the Partnership sold or
disposed of six trailers with a net book value of $33,702 for proceeds of
$44,000, and four marine containers with a net book value of $1,640 for
proceeds of $4,172.
During the three months ended March 31, 1994, the Partnership sold two
trailers with a net book value of $15,445 for proceeds of $13,048.
The Partnership has entered into its 10th year of operation and the
liquidation phase has begun. Therefore, equipment will be marketed for
sale as current lease terms expire.
6
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIC 1985 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
March 31, December 31,
1995 1994
Transportation equipment held for
operating leases $ 9,487,419 $ 9,697,693
Less accumulated depreciation (8,109,158) (8,156,512)
------------ ------------
Net equipment 1,378,261 1,541,181
Cash and cash equivalents 695,590 799,068
Restricted cash 17,590 17,359
Accounts receivable, net of allowance for
doubtful accounts of $18,437 in 1995
and $26,568 in 1994 161,987 188,843
Prepaid insurance 3,884 4,919
------------ ------------
Total assets $ 2,257,312 $ 2,551,370
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 7,708 $ 24,418
Accounts payable 10,566 11,161
Prepaid deposits and engine reserves 17,522 17,290
------------ ------------
Total liabilities 35,796 52,869
Partners' capital (deficit):
Limited Partners (33,727 units) 2,347,804 2,622,019
General Partner (126,288) (123,518)
------------ ------------
Total partners' capital 2,221,516 2,498,501
------------ ------------
Total liabilities and partners' capital $ 2,257,312 $ 2,551,370
============ ============
See accompanying notes to financial
statements.
7
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIC 1985 INCOME FUND
(A Limited Partnership)
STATEMENTS OF INCOME
For the three months
ended March 31,
1995 1994
Revenues:
Lease revenue $314,676 $377,294
Interest and other income 11,274 4,042
Gain on disposition
of equipment 18,691 49,775
-------- --------
Total revenues 344,641 431,111
Expenses:
Depreciation 130,908 145,974
Management fees to affiliate 24,280 32,457
Repairs and maintenance 42,929 58,068
General and administrative
expenses to affiliates 55,095 54,435
Other general and administrative
expenses 4,647 30,282
-------- --------
Total expenses 257,859 321,216
-------- --------
Net income $ 86,782 $109,895
======== ========
Partners' share of net income:
Limited Partners-99% $ 85,914 $108,796
General Partner-1% 868 1,099
-------- --------
Total $ 86,782 $109,895
======== ========
Net income per Limited Partnership
Unit (33,727 units) $ 2.55 $ 3.23
======== ========
Cash distributions $263,767 $244,980
======== ========
Cash distribution per
Limited Partnership Unit $ 7.74 $ 7.19
======== ========
Special cash distributions $100,000 $100,000
======== ========
Special cash distribution per
Limited Partnership Unit $ 2.94 $ 2.94
======== ========
Total cash distribution per
Limited Partnership Unit $ 10.68 $ 10.13
======== ========
See accompanying notes to financial
statements.
8
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIC 1985 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period from December 31, 1993 to March 31, 1995
(Unaudited)
Limited General
Partners Partner Total
Partners' capital (deficit)
at December 31, 1993 $ 3,269,956 $ (116,973) $ 3,152,983
Net income 436,810 4,412 441,222
Cash distributions (1,084,747) (10,957) (1,095,704)
------------ ------------ ------------
Partners' capital (deficit)
at December 31, 1994 2,622,019 (123,518) 2,498,501
Net income 85,914 868 86,782
Cash distributions (360,129) (3,638) (363,767)
------------ ------------ ------------
Partners' capital (deficit)
at March 31, 1995 $ 2,347,804 $ (126,288) $ 2,221,516
============ ============ ============
See accompanying notes to financial
statements.
9
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIC 1985 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the three months
ended March 31,
1995 1994
Operating Activities:
Net income $ 86,782 $ 109,895
Adjustments to reconcile net income
to net cash provided by operating activities:
Gain on disposition of equipment (18,691) (49,775)
Depreciation 130,908 145,974
Changes in operating assets and liabilities:
Restricted cash (231) (91)
Accounts receivable, net 26,856 85,000
Prepaid insurance 1,035 2,929
Due to affiliates (16,710) (19,327)
Accounts payable (595) (16,008)
Prepaid deposits and engine reserves 232 91
---------- ----------
Net Cash provided by operating activities 209,586 258,688
Investing Activities:
Proceeds from disposition of equipment 50,703 60,500
---------- ----------
Net Cash provided by investing activities 50,703 60,500
---------- ----------
Financing Activities:
Cash distributions paid to partners (363,767) (344,980)
---------- ----------
Net Cash used in financing activities (363,767) (344,980)
---------- ----------
Net decrease in cash and cash equivalents (103,478) (25,792)
Cash and cash equivalents at beginning of period 799,068 760,297
---------- ----------
Cash and cash equivalents at end of period $ 695,590 $ 734,505
========== ==========
See accompanying notes to financial
statements.
10
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIC 1985 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
1. Opinion of Management
In the opinion of the management of PLM Financial Services Inc., the
General Partner, the accompanying unaudited financial statements contain
all adjustments necessary, consisting primarily of normal recurring
accruals, to present fairly the Partnership's financial position as of
March 31, 1995, the statements of income and cash flows for the three
months ended March 31, 1995 and 1994. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted from the accompanying financial statements. For
further information, reference should be made to the financial statements
and notes thereto included in the Partnership's Annual Report on Form 10-K
for the year ended December 31, 1994, on file at the Securities and
Exchange Commission.
2. Reclassification
Certain amounts in the 1994 financial statements have been reclassified to
conform to the 1995 presentation.
3. Equipment
Equipment held for operating leases is stated at cost. The components of
equipment are as follows:
Equipment held for operating leases:
March 31, December 31,
1995 1994
Marine containers $ 315,094 $ 324,814
Aircraft 4,009,950 4,009,950
Trailers 5,162,375 5,362,929
------------ ------------
9,487,419 9,697,693
Less accumulated depreciation (8,109,158) (8,156,512)
------------ ------------
Net equipment $ 1,378,261 $ 1,541,181
============ ============
With the exception of 28 trailers, all of the equipment owned by
the Partnership is either on lease or operating in PLM-affiliated
short-term rental facilities as of March 31, 1995. The net book
value of equipment off-lease was $67,631. All of the equipment
owned by the Partnership was either operating in the
PLM-affiliated short-term rental facilities or on lease as of
December 31, 1994.
During the three months ended March 31, 1995, the Partnership
sold or disposed of four marine containers with a net book value
of $1,522 for proceeds of $5,253, and six trailers with a net
book value of $30,490 for proceeds of $45,450.
11
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS VIIC 1985 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
3. Equipment (continued)
During the three months ended March 31, 1994, the Partnership
disposed of two trailers with a net book value of $17,717 for
proceeds of $12,500. Proceeds of $48,000 were received for
equipment disposed of in the fourth quarter of 1993.
The Partnership has entered into its 10th year of operation and
the liquidation phase has begun. Therefore, equipment will be
marketed for sale as current lease terms expire.
12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Liquidity and Capital Resources
(A) Sources
The Partnerships' primary source of liquidity is operating cash flow. Proceeds
realized from the sale or disposal of equipment are generally distributed to the
partners. The Partnerships' sources of capital have included proceeds from their
offering of limited partnership units.
(B) Asset Sales
Equipment sales and dispositions prior to the Partnerships' planned liquidation
phase generally result from either the exercise by lessees of fair market value
purchase options provided for in certain leases, or the payment of stipulated
loss values on equipment lost or disposed of during the time it is subject to
lease agreements. Such disposal of equipment results unpredictably from the
wear, tear, and general risk of normal operations. During the three months ended
March 31, 1995, TEP VIIB sold or disposed of six trailers for $44,000, and four
marine containers for $4,172, and TEP VIIC sold or disposed of six trailers for
$45,450, and four marine containers for $5,253.
The Partnership has entered into its 10th year of operation and the liquidation
phase has begun. Therefore, equipment will be marketed for sale as current lease
terms expire.
(C) Market Values
At least annually, the General Partner prepares an evaluation of the net
realizable value and fair market value of the Partnerships' equipment
portfolios, using, among other sources, independent third-party appraisals,
values reported in trade publications, and comparative values from armslength
transactions for similar equipment as the basis for its evaluation.
Concurrently, the General Partner evaluates whether the current fair market
value of equipment represents the effects of current market conditions or
permanent impairment of value. Equipment whose carrying value is determined to
be permanently impaired, without possibility of being leased at an acceptable
rate, has its book value adjusted to its estimated net realizable value.
The depressed nature of certain transportation sectors, combined
with the impact of certain regulatory policies, has led to volatility in fair
market values for certain of the Partnerships' equipment. Exacerbating this
problem is the perception in some industry sectors that great uncertainty exists
as to when potential recovery to acceptable performance and residual levels may
occur. Further, the current recovery does not appear to fit any historical
pattern. These uncertain market conditions have caused the General Partner to
continuously monitor the changes in market values for the Partnerships'
equipment, and on occasion, the General Partner has made adjustments to
Partnerships' equipment book values to reflect this volatility. While there has
continued to be a general decline in certain market values, the fair market
values of the assets still exceed the Partnerships' carrying value. No
adjustments to reflect impairment of equipment carrying value were recorded
during the first three months of 1995.
13
<PAGE>
Comparison of the Partnerships' Operating Results for the Three Months Ended
March 31, 1995 and 1994.
TEP VIIB:
(A) Revenues
Total revenues of $201,819 for the quarter ended March 31, 1995, increased from
$174,216 for the same period in 1994 due primarily to a gain on the sale of
equipment compared to a loss recorded during the first quarter of 1994.
(1) Lease revenue increased to $183,663 in the first quarter of 1995, from
$174,525 in the first quarter of 1994.
The following table presents lease revenues by equipment type:
For the three months
ended March 31,
1995 1994
Trailers $ 143,910 $ 143,467
Aircraft 24,770 24,770
Rail equipment 7,903 (64)
Marine containers 7,080 6,352
--------- ---------
$ 183,663 $ 174,525
========= =========
Significant revenue component changes resulted primarily from:
(a) Railcar revenue increased due primarily to the re-lease of railcars
which were off-lease during the first quarter of 1994, and a rental credit which
was given to former lessee in the first quarter of 1994.
(2) Interest and other income increased to $5,326 in the first quarter of 1995
from $2,088 in the first quarter of 1994 primarily due to a higher interest rate
earned on investments in the first quarter of 1995.
(3) Gain on disposition of equipment of $12,830 in the first quarter of 1995 was
realized from the sale of six trailers and four marine containers. In the first
quarter of 1994, the Partnership realized a loss of $2,397 from the sale of two
trailers.
(B) Expenses
Total expenses of $221,890 for the quarter ended March 31, 1995 increased from
$166,434 for the same period in 1994. The increase in 1995 expenses was
primarily attributable to increases in bad debt expense, repairs and maintenance
expense, and general and administrative expense partially offset by decreases in
depreciation and management fees.
14
<PAGE>
(1) Direct operating expenses (defined as repairs and maintenance expenses)
increased to $44,422 in the first quarter of 1995, from $21,292 in the same
period in 1994. This increase is primarily attributable to the trailers coming
off term leases and requiring refurbishment prior to transitioning into the
short-term rental facilities operated by an affiliate of the General Partner.
(2) Indirect operating expenses (defined as depreciation expense, management
fees to affiliate, bad debt expenses, and general and administrative expenses)
increased to $177,468 in the first quarter of 1995, from $145,142 in the first
quarter of 1994. This change resulted primarily from:
(a) an increase of $31,521 in bad debt expense resulting from the
evaluation of collectibility of trade accounts receivables;
(b) an increase of $6,382 in general and administrative expenses
relating to increased indirect costs associated with the additional trailers in
the operations of the PLM-affiliated short-term rental facilities;
(c) a decrease of $4,159 in depreciation expense due to the sale or
disposal of trailers and marine containers during the last three quarters of
1994 and the first quarter of 1995;
(d) a decrease of $1,418 in management fees resulting from lower
operating cash flow primarily associated with lower lease revenues on fixed-term
trailers. Management fees are calculated as the greater of 10% of the
Partnership's operating cash flow, or 1/12 of 1/2% of the Partnership's Gross
Proceeds as defined in the Limited Partnership Agreement.
(C) Net Income (Loss)
The Partnership's net loss of $20,071 in the first quarter of 1995, decreased
from net income of $7,782 in the first quarter of 1994. The Partnership's
ability to operate or liquidate assets, secure leases, and re-lease those assets
whose leases expire during the duration of the Partnership is subject to many
factors, and the Partnership's performance in the first quarter of 1995 is not
necessarily indicative of future periods. In the first quarter of 1995, the
Partnership distributed $98,056 to the Limited Partners, or $4.40 per Limited
Partnership Unit.
TEP VIIC:
(A) Revenues
Total revenues of $344,641 for the quarter ended March 31, 1995, decreased from
$431,111 for the same period in 1994. The decrease was primarily due to lower
lease revenues.
(1) Lease revenue decreased to $314,676 in the first quarter of 1995 from
$377,294 in the first quarter of 1994.
15
<PAGE>
The following table presents lease revenues by equipment type:
For the three months
ended March 31,
1995 1994
Trailers $ 205,296 $ 240,648
Aircraft 99,462 128,654
Marine containers 9,918 7,992
--------- ---------
$ 314,676 $ 377,294
========= =========
Significant revenue component changes resulted primarily from:
(a) Trailers revenue decreased due to 28 trailers being off-lease
during the first quarter of 1995, and the sale of trailers during the last three
quarters of 1994, and the first quarter of 1995.
(b) Aircraft revenue decreased due to a reduced rental rate of one
lessee.
(2) Interest and other income increased to $11,274 in the first quarter of 1995
from $4,042 in the first quarter of 1994. The increase was due to a higher
interest rate earned on investments in the first quarter of 1995.
(3) Gain on disposition of equipment of $18,691 in the first quarter of 1995 was
realized from the sale of six trailers and four marine containers. In the first
quarter of 1994, the Partnership realized a gain of $49,775 from the sale of two
trailers.
(B) Expenses
Total expenses of $257,859 for the quarter ended March 31, 1995, decreased from
$321,216 for the same period in 1994. The decrease in 1995 expenses was
primarily attributable to decreases in general and administrative expense,
repairs and maintenance expense, depreciation expenses, and management fees to
affiliates.
(1) Direct operating expenses (defined as repairs and maintenance expenses)
decreased to $42,929 in the first quarter of 1995, from $58,068 in the same
period in 1994 due to disposition of trailers and containers during the last
three quarters of 1994 and the first quarter of 1995.
(2) Indirect operating expenses (defined as depreciation expense, management
fees to affiliate, bad debt expenses, and general and administrative expenses)
decreased to $214,930 in the first quarter of 1995 from $263,148 in the first
quarter of 1994. This change resulted primarily from:
(a) a decrease in general and administrative expenses of $24,975
resulting from decreases in indirect costs associated with the operations of the
PLM- affiliated short-term rental facilities.
16
<PAGE>
(b) a decrease of $15,066 in depreciation expense due to the sale or
disposal of trailers and marine containers during 1994 and 1995;
(c) a decrease in management fees of $8,177 resulting from lower
operating cash flow primarily associated with lower lease revenues on fixed-term
trailers. Management fees are calculated as the greater of 10% of the
Partnership's Operating Cash Flow, or 1/12 of 1/2% of the Partnership's Gross
Proceeds as defined in the Limited Partnership Agreement;
(C) Net Income
The Partnership's net income decreased to $86,782 in the first quarter of 1995,
from $109,895 in the first quarter of 1994. The Partnership's ability to operate
or liquidate assets, secure leases, and re-lease those assets whose leases
expire during the duration of the Partnership is subject to many factors, and
the Partnership's performance in the first quarter of 1995 is not necessarily
indicative of future periods. In the first quarter of 1995, the Partnership
distributed $360,129 to the Limited Partners, or $10.68 per Limited Partnership
Unit.
Trends
Inflation and changing prices did not materially impact the
Partnerships' revenues or expenses during the reported periods.
17
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
18
<PAGE>
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.
PLM TRANSPORTATION EQUIPMENT
PARTNERS VIIC 1985 INCOME FUND
By: PLM Financial Services, Inc.
General Partner
Date: May 11, 1995 By:/s/ David J. Davis
------------------
David J. Davis
Vice President and
Corporate Controller
19
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 695,590
<SECURITIES> 0
<RECEIVABLES> 161,987
<ALLOWANCES> 18,437
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 9,487,419
<DEPRECIATION> 8,109,158
<TOTAL-ASSETS> 2,257,312
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,257,312
<SALES> 0
<TOTAL-REVENUES> 344,641
<CGS> 0
<TOTAL-COSTS> 257,859
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 86,782
<INCOME-TAX> 0
<INCOME-CONTINUING> 86,782
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 86,782
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
