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, 1996 Commission File No. 2-97907
COLUMBIA LEASE INCOME FUND II-D L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3270729
(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 12
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<CAPTION>
COLUMBIA LEASE INCOME FUND II-D 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 - 8
Management's Discussion and Analysis of Financial Condition and
Results of Operations 9 - 10
Part II. OTHER INFORMATION
Items 1 - 6 11
Signature 12
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<CAPTION>
PART I. FINANCIAL INFORMATION
COLUMBIA LEASE INCOME FUND II-D 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 $ 3,540,650 $ 3,085,352
Less accumulated depreciation 1,549,045 1,364,418
--------------- ---------------
Investment property, net 1,991,605 1,720,934
Cash and cash equivalents 545,285 398,864
Net investment in sales-type and direct financing leases - 601
Rents receivable, net (note 2) 25,061 29,672
Sales receivable 976 2,664
Accounts receivable - affiliates (note 4) 41,660 440,621
--------------- ---------------
Total assets $ 2,604,587 $ 2,593,356
=============== ===============
Liabilities and Partners' Equity
Liabilities:
Current portion of long-term debt (note 5) $ 578,896 $ 454,569
Accounts payable and accrued expenses - affiliates (note 4) 68,489 99,552
Accounts payable and accrued expenses 62,086 56,965
Distributions payable (note 6) 61,358 61,358
Long-term debt, less current portion (note 5) 589,445 625,506
--------------- ---------------
Total liabilities 1,360,274 1,297,950
--------------- ---------------
Partners' equity:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 66,800 66,287
Cumulative cash distributions (132,529) (129,461)
Reallocation of capital accounts 64,729 62,174
--------------- ---------------
- -
--------------- ---------------
Limited Partners (7,772 units):
Capital contribution, net of
offering costs 3,400,250 3,400,250
Cumulative net income 1,153,605 1,143,853
Cumulative cash distributions (3,244,813) (3,186,523)
Reallocation of capital accounts (64,729) (62,174)
--------------- ---------------
1,244,313 1,295,406
--------------- ---------------
Total partners' equity 1,244,313 1,295,406
--------------- ---------------
Total liabilities and partners' equity $ 2,604,587 $ 2,593,356
=============== ===============
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See accompanying notes to financial statements.
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<CAPTION>
COLUMBIA LEASE INCOME FUND II-D L.P.
(A Delaware Limited Partnership)
Statements of Operations
For the Quarters Ended March 31, 1996 and 1995
(Unaudited)
1996 1995
--------------- --------------
<S> <C> <C>
Revenue:
Rental income on operating leases $ 253,874 $ 194,594
Earned income on sales-type and direct
financing leases - 1,350
Interest income 4,397 6,828
Net gain (loss) on sale of equipment 1,266 (21,737)
--------------- --------------
Total revenue 259,537 181,035
--------------- --------------
Costs and Expenses:
Depreciation 184,939 167,863
Interest 22,238 1,710
Related party expenses (note 4):
Management fees 14,254 13,733
General and administrative 27,841 11,866
Reversal of provision for doubtful accounts - (6,030)
--------------- --------------
Total costs and expenses 249,272 189,142
--------------- --------------
Net income (loss) $ 10,265 $ (8,107)
=============== ==============
Net income (loss) per Limited Partnership Unit $ 1.26 $ (0.99)
=============== ==============
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See accompanying notes to financial statements.
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<CAPTION>
COLUMBIA LEASE INCOME FUND II-D L.P.
(A Delaware Limited Partnership)
Statements of Cash Flows
For the Quarters Ended March 31, 1996 and 1995
(Unaudited)
1996 1995
--------------- ----------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 10,265 $ (8,107)
--------------- ----------------
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation 184,939 167,863
Net (gain) loss on sale of equipment (1,266) 21,737
Reversal of provision for doubtful accounts - (6,030)
Net decrease in current assets 405,861 12,867
Net (decrease) increase in current liabilities (25,942) 15,158
--------------- ----------------
Total adjustments 563,592 211,595
--------------- ----------------
Net cash provided by operating activities 573,857 203,488
--------------- ----------------
Cash flows from investing activities:
Purchase of investment property (456,174) (667,509)
Proceeds from sales of investment property 1,830 9,844
--------------- ----------------
Net cash used in investing activities (454,344) (657,665)
--------------- ----------------
Cash flows from financing activities:
Proceeds from borrowings on long-term debt 215,484 -
Principal payments on long-term debt (127,218) (38,910)
Cash distributions to partners (61,358) (102,263)
--------------- ----------------
Net cash provided by (used in) financing activities 26,908 (141,173)
--------------- ----------------
Net increase (decrease) in cash and cash equivalents 146,421 (595,350)
Cash and cash equivalents at beginning of period 398,864 906,846
--------------- ----------------
Cash and cash equivalents at end of period $ 545,285 $ 311,496
=============== ================
Supplemental cash flow information:
Interest paid during the period $ 22,238 $ 1,710
=============== ================
Non-cash investing activities:
Reclassification of expired direct
financing lease to operating lease $ 11,035 $ -
=============== ================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COLUMBIA LEASE INCOME FUND II-D L.P.
(A Delaware Limited Partnership)
Notes to Financial Statements
For the Quarters Ended March 31, 1996 and March 31, 1995
(Unaudited)
(1) Organization
The foregoing financial statements of Columbia Lease Income Fund II-D 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 an allowance for estimated losses on receivable
balances. The allowance for doubtful accounts is 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 this 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 $12,113.
(3) Investment Property
At March 31, 1996, the Partnership owned computer equipment with a cost basis of
$3,439,197, subject to existing leases and equipment with a cost basis of
$101,453 in inventory awaiting re-lease or sale. 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 II-D 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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<CAPTION>
1996 1995
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<S> <C> <C>
Equipment acquisition fees $ 11,126 $ 16,281
Management fees 14,254 13,733
Reimbursable expenses paid 28,838 11,051
------------ --------------
$ 54,218 $ 41,065
============ ==============
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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) Long-Term Debt
Long-term debt at March 31, 1996, consists of three installment notes with
Pullman Capital Corporation totaling $299,489, each bearing interest at 8.00%,
one installment note with Wainwright Bank and Trust Company for $53,651 with an
interest rate of 7.00%, and ten installment notes with Liberty Bank totaling
$815,201, six bearing interest at 8.25% and four bearing interest at 11.00%.
These fourteen installment notes are collateralized by the equipment on the
respective leases.
Maturities of long-term debt for the next four years are as follows:
1996 $ 447,455
1997 499,908
1998 195,965
1999 25,013
--------------
$ 1,168,341
==============
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COLUMBIA LEASE INCOME FUND II-D L.P.
(A Delaware Limited Partnership)
Notes to Financial Statements
For the Quarters Ended March 31, 1996 and March 31, 1995
(Unaudited)
(6) Distributions to Partners
For the three months ended March 31, 1996, the declaration of Distributable Cash
was as follows:
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<CAPTION>
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 $ 7.50 $ 58,290 $ 3,068
</TABLE>
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COLUMBIA LEASE INCOME FUND II-D 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 in comparison to the same period in 1995.
The Partnership realized net income of $10,265 and net loss of $8,107 for the
three month periods ended March 31, 1996 and 1995, respectively. Rental income
on operating leases increased $59,280 or 30% between the three month periods.
The increase in rental income can be attributed to leases resulting from
equipment acquisitions during the past twelve month period. Interest income has
decreased $2,431 as a result of lower short-term investment balances held during
the current quarter. The net gain on sale of equipment of $1,266 recognized
during the current quarter can be attributed to sales of equipment carrying
lower net book values, versus the prior quarter, which reflected a $21,737 net
loss on sale of equipment.
Total costs and expenses increased $60,130 or 32% between the three month
periods. The increase in costs and expenses is primarily due to an increase in
interest expense and the higher depreciation expense recognized in the current
quarter. Management fees increased due to the overall rise in rental income.
General and administrative expenses increased due to 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. Interest expense increased
as the Partnership received additional financing of $215,484 during the current
quarter and continued to paydown its existing debt. The long-term debt balance
at March 31, 1996 was $1,168,341 versus a balance of $92,989 at March 31, 1995.
Such debt was used to leverage equipment purchases during 1996 and 1995.
The Partnership recorded net income (loss) per Limited Partnership Unit of $1.26
and $(0.99) 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.
Operating activities have resulted in a 30% increase in rental revenue due to
rentals received from equipment lease acquisitions in 1996 and 1995. 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 $2,673,745 and are to be
received over the next six years.
<PAGE>
COLUMBIA LEASE INCOME FUND II-D L.P.
(A Delaware Limited Partnership)
Management's Discussion and Analysis of
Financial Condition and Results of Operation
(Unaudited)
The Partnership's investing activities during the current quarter resulted in
equipment purchases of $456,174 and equipment sales with a depreciated cost
basis of $564, generating $1,830 in proceeds. The Partnership has no material
capital expenditure commitments, but expects to continue to purchase equipment
as new leases are presented.
The Partnership's financing activities resulted in proceeds from borrowings on
long-term debt of $215,484 and the paydown on long-term debt of $127,218 during
the current quarter of 1996. Such long-term debt bears interest rates, ranging
from 7% to 11%. The Partnership will continue to take down new long-term debt as
necessary to purchase equipment.
Cash distributions are currently at an annual level of 6% per Limited
Partnership Unit, or $7.50 per Limited Partnership Unit on a quarterly basis.
For the quarter ended March 31, 1996, the Partnership declared a cash
distribution of $61,358, of which $3,068 was allocated to the General Partner
and $58,290 was allocated to the Limited Partners. The distribution will be made
on May 15, 1996. The Partnership expects to continue paying distributions 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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<CAPTION>
PART II. OTHER INFORMATION
COLUMBIA LEASE INCOME FUND II-D L.P.
(A Delaware Limited Partnership)
<S> <C>
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 II-D L.P.
(Registrant)
By: TLP Columbia Management Corporation,
its General Partner
By: Arthur P. Beecher,
President
Date: May 14, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000769335
<NAME> COLUMBIA LEASE INCOME FUND II-D 3/31/96 FDS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 545,285
<SECURITIES> 0
<RECEIVABLES> 79,810
<ALLOWANCES> 12,113
<INVENTORY> 0
<CURRENT-ASSETS> 612,982
<PP&E> 3,540,650
<DEPRECIATION> 1,549,045
<TOTAL-ASSETS> 3,604,587
<CURRENT-LIABILITIES> 191,933
<BONDS> 1,168,341
<COMMON> 3,401,250
0
0
<OTHER-SE> (2,156,937)
<TOTAL-LIABILITY-AND-EQUITY> 2,604,587
<SALES> 253,874
<TOTAL-REVENUES> 259,537
<CGS> 0
<TOTAL-COSTS> 14,254
<OTHER-EXPENSES> 212,780
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,238
<INCOME-PRETAX> 10,265
<INCOME-TAX> 0
<INCOME-CONTINUING> 10,265
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,265
<EPS-PRIMARY> 1.26
<EPS-DILUTED> 0
</TABLE>
