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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
Commission file number 0-14460
INTEGRATED RESOURCES AMERICAN LEASING INVESTORS VII-B,
A California Limited Partnership
(Exact name of registrant as specified in its charter)
CALIFORNIA 13-3244533
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
411 West Putnam Avenue, Greenwich, CT 06830
(Address of principal executive offices)
(203) 862-7000
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check 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>
INTEGRATED RESOURCES
AMERICAN LEASING INVESTORS VII-B,
A CALIFORNIA LIMITED PARTNERSHIP
FORM 10-Q - JUNE 30, 1996
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
BALANCE SHEETS - June 30, 1996 and December 31, 1995
STATEMENTS OF OPERATIONS - For the three months ended June 30, 1996 and
1995 and the six months ended June 30, 1996 and 1995
STATEMENT OF PARTNERS' EQUITY - For the six months ended June 30, 1996
STATEMENTS OF CASH FLOWS - For the six months ended June 30, 1996 and
1995
NOTES TO FINANCIAL STATEMENTS
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
PART II - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
SIGNATURES
<PAGE>
INTEGRATED RESOURCES
AMERICAN LEASING INVESTORS VII-B,
A CALIFORNIA LIMITED PARTNERSHIP
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
----------- -----------
<S> <C> <C>
ASSETS
Leased equipment - net of accumulated depreciation
of $10,152,563 and $10,600,903 and allowance
for equipment impairment of $1,581,420
and $1,311,299 ......................................................... $ 3,760,838 $ 4,840,261
Cash and cash equivalents ................................................. 367,841 148,205
Accounts receivable ....................................................... 119,211 333,172
Other receivables and prepaid expenses .................................... 1,133 7,199
----------- -----------
$ 4,249,023 $ 5,328,837
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Liabilities
Deferred income ........................................................... $ 504,980 $ 1,009,960
Accounts payable and accrued expenses ..................................... 172,875 42,284
Distributions payable ..................................................... 109,964 --
Due to affiliates ......................................................... 2,468 7,842
Notes payable ............................................................. -- 290,216
Accrued interest payable .................................................. -- 9,682
----------- -----------
Total liabilities ...................................................... 790,287 1,359,984
----------- -----------
Commitments and contingencies
Partners' equity
Limited partners' equity (19,099 units issued
and outstanding) ....................................................... 3,518,654 4,023,669
General partners' deficit ................................................. (59,918) (54,816)
----------- -----------
Total partners' equity ................................................. 3,458,736 3,968,853
----------- -----------
$ 4,249,023 $ 5,328,837
=========== ============
</TABLE>
See notes to financial statements.
<PAGE>
INTEGRATED RESOURCES
AMERICAN LEASING INVESTORS VII-B,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the three months ended For the six months ended
June 30, June 30,
-------------------------- ------------------------
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Rental ............................................ $ 294,873 $ 445,559 $ 625,547 $ 891,118
Other, principally interest ....................... 3,210 1,746 6,596 4,136
--------- --------- --------- ---------
298,083 447,305 632,143 895,254
--------- --------- --------- ---------
Costs and expenses
Provision for equipment impairment ................ 397,000 -- 397,000 --
Depreciation ...................................... 228,567 282,480 471,019 564,959
General and administrative ........................ 26,474 20,367 47,566 43,680
Fees to affiliates ................................ 5,954 8,911 12,568 17,822
Operating ......................................... 562 337 1,348 951
Interest .......................................... -- 59,979 -- 119,958
--------- --------- --------- ---------
658,557 372,074 929,501 747,370
--------- --------- --------- ---------
(360,474) 75,231 (297,358) 147,884
Gain on disposition of equipment ....................... 16,863 3,217 25,496 3,217
--------- --------- --------- ---------
Net (loss) income ...................................... $(343,611) $ 78,448 $(271,862) $ 151,101
========= ========= ========= =========
Net (loss) income attributable to
Limited partners .................................. $(340,175) $ 77,664 $(269,143) $ 149,590
General partners .................................. (3,436) 784 (2,719) 1,511
--------- --------- --------- ---------
$(343,611) $ 78,448 $(271,862) $ 151,101
========= ========= ========= =========
Net (loss) income per unit of limited partnership
interest (19,099 units outstanding) $ (17.81) $ 4.07 $ (14.09) $ 7.83
========== ========= ======== =========
</TABLE>
See notes to financial statements.
<PAGE>
INTEGRATED RESOURCES
AMERICAN LEASING INVESTORS VII-B,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENT OF PARTNERS' EQUITY
<TABLE>
<CAPTION>
Limited General Total
Partners' Partners' Partners'
Equity Deficit Equity
----------- ----------- -----------
<S> <C> <C> <C>
Balance, January 1, 1996 ....................................................... $ 4,023,669 $ (54,816) $ 3,968,853
Net loss for the six months
ended June 30, 1996 ....................................................... (269,143) (2,719) (271,862)
Distributions to partners for the six
months ended June 30, 1996
($12.35 per limited partnership unit) ..................................... (235,872) (2,383) (238,255)
----------- ----------- -----------
Balance, June 30, 1996 ......................................................... $ 3,518,654 $ (59,918) $ 3,458,736
=========== =========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
INTEGRATED RESOURCES
AMERICAN LEASING INVESTORS VII-B,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the six months ended
June 30,
--------------------------------
1996 1995
--------- ---------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities
Net (loss) income ......................................................... $(271,862) $ 151,101
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation ....................................................... 471,019 564,959
Provision for equipment impairment ................................. 397,000 --
Amortization of deferred income .................................... (504,980) --
Gain on disposition of equipment ................................... (25,496) (3,217)
Changes in assets and liabilities
Accounts receivable .................................................... 213,961 (8,785)
Other receivables and prepaid expenses ................................. 6,066 175
Accounts payable and accrued expenses .................................. 130,591 (2,637)
Due to affiliates ...................................................... (5,374) --
Accrued interest payable ............................................... (9,682) (25,018)
--------- ---------
Net cash provided by operating activities ....................... 401,243 676,578
--------- ---------
Cash flows from investing activities
Proceeds from disposition of equipment .................................... 236,900 23,211
Other non-operating payments .............................................. -- (4,800)
--------- ---------
Net cash provided by investing activities ....................... 236,900 18,411
--------- ---------
Cash flows from financing activities
Distributions to partners ................................................. (128,291) --
Principal payments on notes payable ....................................... (290,216) (699,198)
--------- ---------
Net cash used in financing activities ........................... (418,507) (699,198)
--------- ---------
Net increase (decrease) in cash and cash equivalents ........................... 219,636 (4,209)
Cash and cash equivalents, beginning of period ................................. 148,205 148,460
--------- ---------
Cash and cash equivalents, end of period ....................................... $ 367,841 $ 144,251
========= =========
Supplemental disclosure of cash flow information
Interest paid ............................................................. $ 9,682 $ 144,976
========= =========
</TABLE>
See notes to financial statements.
<PAGE>
INTEGRATED RESOURCES
AMERICAN LEASING INVESTORS VII-B,
A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
1 INTERIM FINANCIAL INFORMATION
The summarized financial information contained herein is unaudited;
however, in the opinion of management, all adjustments (consisting only
of normal recurring accruals) necessary for a fair presentation of such
financial information have been included. The accompanying financial
statements, footnotes and discussion should be read in conjunction with
the financial statements, related footnotes and discussions contained
in the Integrated Resources American Leasing Investors VII-B, a
California Limited Partnership (the "Partnership") annual report on
Form 10-K for the year ended December 31, 1995. The results of
operations for the six months ended June 30, 1996, are not necessarily
indicative of the results to be expected for the full year.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Leased equipment
The cost of leased equipment represents the initial cost of the
equipment to the Partnership plus miscellaneous acquisition and closing
costs, and is carried at the lower of depreciated cost or net
realizable value.
Depreciation is computed using the straight-line method, over the
estimated useful lives of such assets (13 to 15 years for
transportation equipment).
When equipment is sold or otherwise disposed of, the cost and
accumulated depreciation (and any related allowance for equipment
impairment) are removed from the accounts and any gain or loss on such
sale or disposal is reflected in operations. Normal maintenance and
repairs are charged to operations as incurred. The Partnership provides
allowances for equipment impairment based upon a quarterly review of
all equipment in its portfolio, when management believes that, based
upon market analysis, appraisal reports and leases currently in place
with respect to specific equipment, the investment in such equipment
may not be recoverable.
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES
The corporate general partner of the Partnership, ALI Capital Corp.
(the "Corporate General Partner"), the managing general partner of the
Partnership, ALI Equipment Management Corp. ("Equipment Management")
and Integrated Resources Equipment Group, Inc. ("IREG") are wholly
owned subsidiaries of Presidio Capital Corp. ("Presidio"). Z Square G
Partners II was the associate general partner of the Partnership
through February 27, 1995. On February 28, 1995, Presidio Boram Corp.,
a subsidiary of Presidio, became the associate general partner. Other
limited partnerships and similar investment programs have been formed
by Equipment Management or its affiliates to acquire equipment and,
<PAGE>
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (continued)
accordingly, conflicts of interest may arise between the Partnership
and such other limited partnerships. Affiliates of Equipment Management
have also engaged in businesses related to the management of equipment
and the sale of various types of equipment and may transact business
with the Partnership.
Subject to the rights of the Limited Partners under the Limited
Partnership Agreement, Presidio will control the Partnership through
its direct or indirect ownership of all of the shares of Equipment
Management, the Corporate General Partner and, as of February 28, 1995,
the associate general partner. Presidio is managed by Presidio
Management Company, LLC ("Presidio Management"), a company controlled
by a director of Presidio. Presidio Management is responsible for the
day-to-day management of Presidio and, among other things, has
authority to designate directors of Equipment Management, the Corporate
General Partner and the associate general partner. In March 1996,
Presidio Management assigned its agreement for the day-to-day
management of Presidio to Wexford Management LLC ("Wexford").
Presidio is a liquidating company. Although Presidio has no immediate
plans to do so, it will ultimately seek to dispose of the interests it
acquired from Integrated Resources, Inc. through liquidation; however,
there can be no assurance of the timing of such transaction or the
effect it may have on the Partnership.
In March 1995, Presidio elected new directors for Equipment Management.
Wexford Management Corp., formerly Concurrency Management Corp.,
provides management and administrative services to Presidio, its direct
and indirect subsidiaries, as well as to the Partnership. Effective
January 1, 1996, Wexford Management Corp. assigned its agreement to
provide management and administrative services to Presidio and its
subsidiaries to Wexford. During the six months ended June 30, 1996,
reimbursable expenses to Wexford by the Partnership amounted to
$14,155.
The Partnership entered into a management agreement with IREG, pursuant
to which IREG would receive 5% of annual gross rental revenues on
operating leases; 2% of annual gross rental revenues on full payout
leases which contain net lease provisions; and 1% of annual gross
rental revenues if services are performed by third parties under the
active supervision of IREG, as defined in the Limited Partnership
Agreement. For the six months ending June 30, 1996 and 1995, the
Partnership incurred expenses of $12,512 and $17,822, respectively, for
such management services.
During the operating and sale stage of the Partnership, IREG is
entitled to a partnership management fee equal to 4% of distributable
cash from operations, as defined in the Limited Partnership Agreement,
subject to increase after the limited partners have received certain
specified minimum returns on their investment. For the six months ended
June 30, 1996, the Partnership incurred partnership management fee
expense of $56. No such amount was incurred during the six months ended
June 30, 1995.
The general partners are entitled to 1% of distributable cash from
operations and cash from sales and an allocation of 1% of taxable net
income or loss of the Partnership.
<PAGE>
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (continued)
During the operating and sale stage of the Partnership, IREG may be
entitled to receive certain other fees which are subordinated to the
receipt by the limited partners of their original invested capital and
certain specified minimum returns on their investment.
Upon the ultimate liquidation of the Partnership, the general partners
may be required to remit to the Partnership certain payments
representing capital account deficit restoration based upon a formula
provided within the Limited Partnership Agreement. Such restoration
amount may be less than the recorded general partners' deficit, which
could result in distributions to the limited partners of less than
their recorded equity.
In April 1995, Equipment Management and certain affiliates entered into
an agreement with Fieldstone Private Capital Group, L.P. ("Fieldstone")
pursuant to which Fieldstone performs certain management and
administrative services relating to the Partnership as well as certain
other partnerships in which Equipment Management serves as general
partner. Substantially all costs associated with the retention of
Fieldstone will be paid by Equipment Management.
4 DISTRIBUTIONS TO PARTNERS
Distributions payable to the Limited Partners and General Partners of
$108,864 ($5.70 per unit) and $1,100, respectively, at June 30, 1996,
were paid in August 1996.
5 EQUIPMENT SALES - 1996
On February 8, 1996 the Partnership entered into an agreement (the
"Agreement") with an unaffiliated third party (the "Purchaser") which
provides for the sale of 407 dry van piggyback trailers (the
"Trailers") upon their return from the lessee. Pursuant to the terms of
the Agreement, redelivery of the Trailers commenced on or about January
2, 1996 and will continue through the earlier of the date at which all
Trailers have been delivered and December 31, 1996. In addition, the
basic term of the lease expired effective December 31, 1995, but each
Trailer remains subject to the terms of its lease until the date it is
redelivered by lessee in compliance with the return conditions as
defined in the lease agreement. At present, the return dates of the
Trailers which remain on lease have not been finalized. As of June 30,
1996, 92 Trailers were transferred to and accepted by Purchaser for a
purchse price of $2,575 each.
The 92 Trailers were sold for sales proceeds aggregating $236,900. At
the time of the sale, the net carrying value of the 92 Trailers was
$211,404. The 92 Trailers had originally been acquired in January 1986
for an aggregate purchase cost of $1,257,643, inclusive of associated
acquisition costs.
6 EQUIPMENT LEASE PREPAYMENT
In December 1985, the Partnership, through an equipment trust of which
it is the sole beneficiary, acquired a Boeing 727-200 Aircraft (the
"Aircraft") and immediately leased the Aircraft back to Piedmont
Aviation, Inc. (the "Aircraft Lease"). The Partnership provided a
portion of the purchase price by utilizing approximately 40% of the net
<PAGE>
proceeds from the Partnership's offering of units of limited
partnership interest. The balance was provided by the Partnership
assuming a loan from an unaffiliated third party lender (the "Lender").
The loan, which was nonrecourse, was anticipated to be self-liquidating
by the application of rentals due over the life of the Aircraft Lease.
Subsequent to 1985, the operations of Piedmont were merged into USAir
Group, Inc. ("USAir").
In early 1995, USAir publicly announced that it anticipated reducing
its fleet size and during 1995, planned to retire or dispose of 21
aircraft including its six remaining 727-200 aircraft. During the
quarter ended June 30, 1995, USAir indicated that the Aircraft would
require a heavy maintenance check under the USAir maintenance program.
Rather than perform such heavy maintenance, USAir grounded the
Aircraft.
In October 1995, the Partnership and USAir entered into an agreement
(the "Agreement") that provided for a restructuring of the Aircraft
Lease. Pursuant to the terms of the Agreement, USAir agreed to make a
payment to the Lender equal to the outstanding principal balance plus
interest which accrued through October 30, 1995 in the amount of
$1,553,452. This payment fully retired the associated nonrecourse debt
and relieved USAir of all future Basic Rent obligations due under the
Aircraft Lease. Additionally, pursuant to the terms of the Agreement,
USAir commenced a world-wide remarketing effort directed toward the
sale of the Aircraft (see Note 7).
7 SUBSEQUENT EVENT
On July 16, 1996, the Partnership sold the Aircraft to an unrelated
third party for sales proceeds of approximately $2,950,000 less selling
expenses of approximately $307,500. Concurrently with the sale, the
Partnership and USAir terminated the Aircraft Lease, scheduled to
expire January 2, 1997. In addition, the Partnership retained and
recognized as income approximately $462,900 representing the
outstanding balance of the October 1995 lease prepayment. At the time
of sale, such Aircraft had a net carrying value of approximately
$3,105,400.
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership declared a cash distribution of $5.70 per unit of
limited partnership interest totaling $109,964 for the quarter ended
June 30, 1996, which represented cash from sales of $108,150 generated
during the current quarter, as well as from cash reserves generated in
prior quarters.
At June 30, 1996, the Partnership had operating reserves of
approximately $203,000 which was comprised of undistributed cash from
operations of approximately $108,000, as well as general working
capital reserves of $95,485.
In December 1985, the Partnership, through an equipment trust of which
it is the sole beneficiary, acquired a Boeing 727-200 Aircraft (the
"Aircraft") and immediately leased the Aircraft back to Piedmont
Aviation, Inc. (the "Aircraft Lease"). The Partnership provided a
portion of the purchase price by utilizing approximately 40% of the net
proceeds from the Partnership's offering of units of limited
partnership interest. The balance was provided by the Partnership
assuming a loan from an unaffiliated third party lender (the "Lender").
The loan, which was nonrecourse, was anticipated to be self-liquidating
by the application of rentals due over the life of the Aircraft Lease.
Subsequent to 1985, the operations of Piedmont were merged into USAir
Group, Inc. ("USAir").
In early 1995, USAir publicly announced that it anticipated reducing
its fleet size and during 1995, planned to retire or dispose of 21
aircraft including its six remaining 727-200 aircraft. During the
quarter ended June 30, 1995, USAir indicated that the Aircraft would
require a heavy maintenance check under the USAir maintenance program.
Rather than perform such heavy maintenance, USAir grounded the
Aircraft.
In October 1995, the Partnership and USAir entered into an agreement
(the "Agreement") that provided for a restructuring of the Aircraft
Lease. Pursuant to the terms of the Agreement, USAir agreed to make a
payment to the Lender equal to the outstanding principal balance plus
interest which accrued through October 30, 1995 in the amount of
$1,553,452. This payment fully retired the associated nonrecourse debt
and relieved USAir of all future Basic Rent obligations due under the
Aircraft Lease. Additionally, pursuant to the terms of the Agreement,
USAir commenced a world-wide remarketing effort directed toward the
sale of the Aircraft.
On July 16, 1996, the Partnership sold the Aircraft to an unrelated
third party for sales proceeds of approximately $2,950,000 less selling
expenses of approximately $307,500. Concurrently with the sale, the
Partnership and USAir terminated the Aircraft Lease, scheduled to
expire January 2, 1997. In addition, the Partnership retained and
recognized as income approximately $462,900 representing the
outstanding balance of the October 1995 lease prepayment. At the time
of sale, such Aircraft had a net carrying value of approximately
$3,105,400.
<PAGE>
Liquidity and Capital Resources (continued)
On February 8, 1996 the Partnership entered into an agreement (the
"Agreement") with an unaffiliated third party (the "Purchaser") which
provides for the sale of 407 dry van piggyback trailers (the
"Trailers") upon their return from the lessee. Pursuant to the terms of
the Agreement, redelivery of the Trailers commenced on or about January
2, 1996 and will continue through the earlier of the date at which all
Trailers have been delivered and December 31, 1996. In addition, the
basic term of the lease expired effective December 31, 1995, but each
Trailer remains subject to the terms of its lease until the date it is
redelivered by lessee in compliance with the return conditions as
defined in the lease agreement. At present, the return dates of
Trailers which remain on lease have not been finalized. As of June 30,
1996, 92 Trailers have been transferred to and accepted by the
Purchaser for a purchase price of $2,575 each.
It is the Partnership's intention to maintain reserves (including the
general working capital reserve) sufficient to support the
Partnership's future obligations. In the future, liquidity and
distribution levels may fluctuate based upon (i) the net proceeds from
the sale of the Aircraft on July 16, 1996 available for distribution,
(ii) closing the sale of the Trailers as mentioned above and (iii)
requirements for operating reserves, if any. Upon the sale of the
remaining assets, the Partnership will have liquidated all of its
equipment portfolio. The Managing General Partner will then prepare a
final accounting of the assets and liabilities and commence the
dissolution and termination of the Partnership and make a final
distribution to partners.
At the present time, the level of fees payable to IREG for services
rendered to the Partnership and other affiliated equipment leasing
partnerships is declining. The effect of this situation cannot be
determined at this point. The management agreements between the
Partnership and IREG may be terminated by either party to such
agreements.
In April 1995, the Managing General Partner and certain affiliates
entered into an agreement with Fieldstone pursuant to which Fieldstone
performs certain management and administrative services relating to the
assets of the Partnership as well as certain other partnerships in
which the Managing General Partner serves as general partner.
Substantially all costs associated with the retention of Fieldstone
will be paid by the Managing General Partner.
On February 28, 1995, Presidio Boram Corp., a subsidiary of Presidio,
became the Associate General Partner, upon the withdrawal of Z Square G
Partners II, the former Associate General Partner.
Inflation and changing prices have not had any material effect on the
Partnership's revenues since its inception, nor does the Partnership
anticipate any material effect on its business from these factors.
The Partnership had no outstanding material commitments for capital
expenditures as of June 30, 1996.
<PAGE>
Liquidity and Capital Resources (continued)
Results of Operations (continued)
Net income decreased significantly for the quarter and six months ended
June 30, 1996, accounting for net losses, as compared with net income
for the prior year's periods, primarily due to a provision for
equipment impairment to recognize the decrease in the net carrying
value of the Aircraft, as well as the reduction in rental revenues,
partially offset by a reduction in depreciation and other expenses.
The Partnership's rental revenues decreased for the quarter and six
months ended June 30, 1996, as compared to the prior year's periods,
primarily due to the restructuring of the USAir lease, effective July
1, 1995, as well as a reduction in rental revenues with respect to the
Trailers which are in the process of being returned and sold, as
previously discussed.
Expenses decreased in the quarter and six months ended June 30, 1996 in
comparison to the prior year's periods. There was no interest expense
for the quarter and six months ended June 30, 1996 due to the
retirement of the nonrecourse loan associated with the Trailers on
January 2, 1996. Fees to affiliates decreased due to a decrease in
equipment management fees resulting from the decrease in rentals on
which such fees are based. Depreciation expense decreased, resulting
from the restructuring of the USAir lease, during the quarter ended
September 30, 1995. A provision for equipment impairment of $397,000
was recognized during the quarter ended June 30, 1996 to reflect the
reduced value of the Aircraft. Administrative expenses increased during
the quarter and six months ended June 30, 1996 when compared with the
prior year's periods.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None
(b) Reports on Form 8-K: None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnership has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Integrated Resources
American Leasing Investors VII-B,
a California Limited Partnership
By: ALI Equipment Management Corp.
Managing General Partner
/S/ Douglas J. Lambert
-------------------------
Douglas J. Lambert
President (Principal Executive
and Financial Officer)
Date: August 16, 1996
