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 0-15437
-----------------------
PLM Transportation Equipment Partners IXA 1986
Income Fund (Exact name of registrant as
specified in its charter)
California 94-2992018
(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 IXA 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
March 31, December 31,
1995 1994
Equipment held for operating leases, at cost $ 7,395,987 $ 7,462,921
Less accumulated depreciation (5,995,253) (5,944,395)
------------ ------------
Net equipment 1,400,734 1,518,526
Cash and cash equivalents 241,489 298,718
Accounts receivable, net of allowance for
doubtful accounts of $121,154 in 1995
and $121,925 in 1994 22,568 34,620
Due from affiliates 7,128 --
Prepaid insurance 2,877 3,623
------------ ------------
Total assets $ 1,674,796 $ 1,855,487
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates -- $ 2,732
Accounts payable 4,627 4,112
Prepaid deposits 27,075 23,574
----------- -----------
Total liabilities 31,702 30,418
Partners' capital (deficit):
Limited Partners (24,285 units) 1,733,617 1,913,772
General Partner (90,523) (88,703)
----------- -----------
Total partners' capital 1,643,094 1,825,069
----------- -----------
Total liabilities and partners' capital $ 1,674,796 $ 1,855,487
=========== ===========
See accompanying notes to financial
statements.
-1-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
For the three months
ended March 31,
1995 1994
Revenues:
Lease revenue $ 120,093 $ 114,948
Interest and other income 4,074 1,746
Gain (loss) on disposition
of equipment 9,545 (4,683)
--------- ---------
Total revenues 133,712 112,011
Expenses:
Depreciation 101,860 112,117
Management fees to affiliate 15,178 15,431
Repairs and maintenance 81,511 36,285
General and administrative
expenses to affiliates 30,679 13,210
Other general and
administrative expenses 11,983 25,612
--------- ---------
Total expenses 241,211 202,655
--------- ---------
Net loss $(107,499) $ (90,644)
========= =========
Partners' share of net loss:
Limited Partners - 99% $(106,424) $ (89,738)
General Partner - 1% (1,075) (906)
--------- ---------
Total $(107,499) $ (90,644)
========= =========
Net loss per Limited
Partnership Unit (24,285 units) $ (4.38) $ (3.70)
========= =========
Cash distributions $ 74,476 $ 120,522
========= =========
Cash distributions per
Limited Partnership Unit $ 3.04 $ 4.91
========= =========
See accompanying notes to financial
statements.
-2-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period ended December 31, 1993 to March 31, 1995
Limited General
Partners Partner Total
Partners' capital (deficit)
at December 31, 1993 $ 2,539,823 $ (82,379) $ 2,457,444
Net loss (131,481) (1,328) (132,809)
Cash distributions (494,570) (4,996) (499,566)
----------- ----------- -----------
Partners' capital (deficit)
at December 31, 1994 1,913,772 (88,703) 1,825,069
Net loss (106,424) (1,075) (107,499)
Cash distributions (73,731) (745) (74,476)
----------- ----------- -----------
Partners' capital (deficit)
at March 31, 1995 $ 1,733,617 $ (90,523) $ 1,643,094
=========== =========== ===========
See accompanying notes to financial
statements.
-3-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the three months ended
March 31,
-------------------
1995 1994
--------- ------
Operating activities:
Net loss $ (107,499) $ (90,644)
Adjustments to reconcile net loss
to net cash provided by operating activities:
(Gain) loss on disposition of equipment (9,545) 4,683
Depreciation 101,860 112,117
Changes in operating assets and liabilities
Accounts receivable, net 12,052 54,248
Due to/from affiliates (9,860) (1,187)
Prepaid insurance 746 1,971
Accounts payable 515 (69,565)
Prepaid deposits 3,501 (7,733)
---------- ----------
Net cash (used in) provided by operating activities (8,230) 3,890
---------- ----------
Investing activities:
Proceeds from disposition of equipment 26,353 59,600
Payments for purchase of capital improvements (876) --
---------- ----------
Net cash provided by investing activities 25,477 59,600
---------- ----------
Cash flows used in financing activities:
Cash distributions paid to partners (74,476) (120,522)
---------- ----------
Cash and cash equivalents:
Net decrease in cash and cash equivalents (57,229) (57,032)
Cash and cash equivalents at beginning of period 298,718 335,234
---------- ----------
Cash and cash equivalents at end of period $ 241,489 $ 278,202
========== ==========
See accompanying notes to financial
statements.
-4-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 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 only 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 presentations.
3. Equipment
Equipment held for operating leases is stated at cost. The
components of equipment are as follows:
March 31, December 31,
1995 1994
Rail equipment $ 783,870 $ 783,870
Marine containers 1,498,075 1,526,759
Commuter aircraft 3,076,382 3,076,382
Trailers 2,037,660 2,075,910
------------ ------------
7,395,987 7,462,921
Less accumulated depreciation (5,995,253) (5,944,395)
------------ ------------
Net equipment $ 1,400,734 $ 1,518,526
============ ============
With the exception of the commuter aircraft, all equipment was either
on lease or operating in PLM-affiliated short-term rental facilities
as of March 31, 1995. The carrying value of the off-lease equipment
was $550,535 and $595,620 at March 31, 1995 and December 31, 1994,
respectively.
During the three months ended March 31, 1995, the Partnership
disposed of or sold one trailer and two marine containers with
an aggregate book value of $16,808 for proceeds of $26,353.
During the three months ended March 31, 1994, the Partnership
sold nine trailers with a book value of $64,283 for proceeds
of $59,600.
-5-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
March 31, December 31,
1995 1994
Equipment held for operating leases, at cost $ 5,248,250 $ 5,309,856
Less accumulated depreciation (4,201,029) (4,180,140)
------------ ------------
Net equipment 1,047,221 1,129,716
Cash and cash equivalents 351,665 492,060
Accounts receivable, net of allowance
for doubtful accounts of $40,432 in 1995
and $17,600 in 1994 42,808 66,451
Prepaid insurance 2,297 2,960
------------ ------------
Total assets $ 1,443,991 $ 1,691,187
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 2,238 $ 6,063
Accounts payable and other liabilities 4,315 11,411
Prepaid deposits 16,993 16,384
------------ ------------
Total liabilities 23,546 33,858
Partners' capital (deficit):
Limited Partners (17,460 units) 1,483,107 1,717,622
General Partner (62,662) (60,293)
------------ ------------
Total partners' capital 1,420,445 1,657,329
------------ ------------
Total liabilities and partners' capital $ 1,443,991 $ 1,691,187
============ ============
See accompanying notes to financial
statements.
-6-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
For the three months
ended March 31,
1995 1994
Revenues:
Lease revenue $ 145,558 $ 166,974
Interest and other income 6,291 2,589
Gain on disposition of equipment 17,544 84,546
--------- ---------
Total revenues 169,393 254,109
Expenses:
Depreciation 71,098 107,714
Management fees to affiliate 10,913 15,017
Repairs and maintenance 17,006 16,734
General and administrative
expenses to affiliates 29,293 17,312
Other general and administrative
expenses 19,609 10,799
Bad debt expense 22,833 --
--------- ---------
Total expenses 170,752 167,576
--------- ---------
Net income (loss) $ (1,359) $ 86,533
========= =========
Partners' share of net income (loss):
Limited Partners - 99% $ (1,345) $ 85,668
General Partner - 1% (14) 865
--------- ------
Total $ (1,359) $ 86,533
========= ======
Net income (loss) per Limited Partnership
Unit (17,460 units) $ (0.08) $ 4.91
========= ======
Cash distributions $ 235,525 $192,874
========= ======
Cash distribution per
Limited Partnership Unit $ 13.35 $ 10.94
========= ======
See accompanying notes to financial
statements.
-7-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period ended December 31, 1993 to March 31, 1995
Limited General
Partners Partner Total
Partners' capital (deficit)
at December 31, 1993 $ 2,294,154 $ (54,470) $ 2,239,684
Net income 276,677 2,795 279,472
Cash distributions (853,209) (8,618) (861,827)
----------- ----------- -----------
Partners' capital (deficit)
at December 31, 1994 1,717,622 (60,293) 1,657,329
Net loss (1,345) (14) (1,359)
Cash distributions (233,170) (2,355) (235,525)
----------- ----------- -----------
Partners' capital (deficit)
at March 31, 1995 $ 1,483,107 $ (62,662) $ 1,420,445
=========== =========== ===========
See accompanying notes to financial
statements.
-8-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the three months ended
March 31,
-------------------
1995 1994
--------- -------
Operating activities:
Net income (loss) $ (1,359) $ 86,533
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation 71,098 107,714
Gain on disposition of equipment (17,544) (84,546)
Changes in operating assets and liabilities
Accounts receivable, net 23,643 27,276
Prepaid insurance 663 1,647
Due to affiliates (3,825) (5,970)
Accounts payable (7,096) 2,451
Prepaid deposits 609 --
---------- ----------
Net cash provided by operating activities 66,189 135,105
---------- ----------
Cash flows provided by investing activities:
Proceeds from disposition of equipment 28,941 120,000
---------- ----------
Cash flows used in financing activities:
Cash distributions paid to partners (235,525) (192,874)
---------- ----------
Cash and cash equivalents:
Net (decrease) increase in cash and cash equivalents (140,395) 62,231
Cash and cash equivalents at beginning of period 492,060 455,659
---------- ----------
Cash and cash equivalents at end of period $ 351,665 $ 517,890
========== ==========
See accompanying notes to financial
statements.
-9-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 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 only 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. 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 at March 31, 1995, and December 31, 1994, are as follows:
March 31, December 31,
1995 1994
Rail equipment $ 867,300 $ 867,300
Marine containers 461,321 483,606
Aircraft 1,492,368 1,492,368
Trailers and tractors 2,427,261 2,466,582
------------ ------------
5,248,250 5,309,856
Less accumulated depreciation (4,201,029) (4,180,140)
------------ ------------
Net equipment $ 1,047,221 $ 1,129,716
============ ============
With the exception of a sidelift, all equipment was either on lease or
operating in PLM affiliated short-term rental facilities as of March
31, 1995. The carrying value of the off-lease equipment was $92,876 at
March 31, 1995.
During the three months ended March 31, 1995, the Partnership sold or
disposed of one trailer and one marine container with an aggregate book
value of $11,397 for proceeds of $28,941. During the three months ended
March 31, 1994, the Partnership sold eight tractors with a book value
of $35,454 for proceeds of $120,000.
-10-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
March 31, December 31,
1995 1994
Equipment held for operating leases, at cost $ 5,082,353 $ 5,082,353
Less accumulated depreciation (4,049,798) (3,980,922)
------------ ------------
1,032,555 1,101,431
Equipment held for sale -- 273,875
------------ ------------
Net equipment 1,032,555 1,375,216
Cash and cash equivalents 777,206 312,230
Restricted cash 6,600 6,600
Accounts receivable, net of allowance
for doubtful accounts of $32,935
in 1995 and $31,642 in 1994 53,345 106,868
Due from affiliates 19,775 20,035
Prepaid expenses and other assets 26,496 28,583
------------ ------------
Total assets $ 1,915,977 $ 1,849,532
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable $ 16,635 $ 8,178
Prepaid deposits and reserves 23,405 48,612
------------ ------------
Total liabilities 40,040 56,790
Partners' capital (deficit):
Limited Partners (16,914 units) 1,931,639 1,849,276
General Partner (55,702) (56,534)
------------ ------------
Total partners' capital 1,875,937 1,792,742
------------ ------------
Total liabilities and partners' capital $ 1,915,977 $ 1,849,532
============ ============
See accompanying notes to financial
statements.
-11-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF INCOME
For the three months
ended March 31,
1995 1994
Revenues:
Lease revenue $ 190,510 $ 219,781
Interest and other income 6,541 1,228
Gain (loss) on disposition of equipment 236,072 (19)
--------- ---------
Total revenues 433,123 220,990
Expenses:
Depreciation 75,473 81,831
Management fees to affiliate 13,649 18,825
Repairs and maintenance 48,958 24,890
General and administrative
expenses to affiliates 48,283 48,223
Other general and administrative
expenses 8,542 15,616
--------- ---------
Total expenses 194,905 189,385
--------- ---------
Net income $ 238,218 $ 31,605
========= =========
Partners' share of net income:
Limited Partners - 99% $ 235,836 $ 31,289
General Partner - 1% 2,382 316
--------- ---------
Total $ 238,218 $ 31,605
========= =========
Net income per Limited
Partnership Unit (16,914 units) $ 13.94 $ 1.85
========= =========
Cash distributions $ 155,023 $ 94,520
========= =========
Cash distribution per Limited
Partnership Unit $ 9.07 $ 5.53
========= =========
See accompanying notes to financial
statements.
-12-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period ended December 31, 1993 to March 31, 1995
Limited General
Partners Partner Total
Partners' capital (deficit)
at December 31, 1993 $ 2,080,643 $ (54,197) $ 2,026,446
Net income 153,332 1,549 154,881
Cash distributions (384,699) (3,886) (388,585)
----------- ----------- -----------
Partners' capital (deficit)
at December 31, 1994 1,849,276 (56,534) 1,792,742
Net income 235,836 2,382 238,218
Cash distributions (153,473) (1,550) (155,023)
----------- ----------- -----------
Partners' capital (deficit)
at March 31, 1995 $ 1,931,639 $ (55,702) $ 1,875,937
=========== =========== ===========
See accompanying notes to financial
statements.
-13-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the three months ended
March 31,
--------------------
1995 1994
--------- -------
Operating activities:
Net income $ 238,218 $ 31,605
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 75,473 81,831
Gain (loss) on disposition of equipment (236,072) 19
Change in operating assets and liabilities
Accounts receivable, net 53,523 22,783
Due from affiliates 260 2,064
Prepaid deposits and reserves (25,207) 13,464
Prepaid expenses and other assets 889 3,048
Accounts payable and other liabilities 8,457 (14,237)
---------- ----------
Net cash provided by operating activities 115,541 140,577
---------- ----------
Investing activities:
Proceeds from disposition of equipment 503,260 6,000
Payments received on finance leases 1,198 --
---------- ----------
Net cash provided by investing activities 504,458 6,000
---------- ----------
Cash flows used in financing activities:
Cash distributions paid to partners (155,023) (94,520)
---------- ----------
Cash and cash equivalents:
Net increase in cash and cash equivalents 464,976 52,057
Cash and cash equivalents at beginning of period 312,230 144,131
---------- ----------
Cash and cash equivalents at end of period $ 777,206 $ 196,188
========== ==========
See accompanying notes to financial
statements.
-14-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 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 only 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. 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. Equipment held for
sale is stated at the lower of the equipment's depreciated cost or net
realizable value and is subject to a pending contract for sale. The components
of equipment are as follows:
March 31, December 31,
1995 1994
Rail equipment $ 178,501 $ 178,501
Marine containers 160,473 160,473
Aircraft 913,188 913,188
Trailers and tractors 3,830,191 3,830,191
------------ ------------
5,082,353 5,082,353
Less accumulated depreciation (4,049,798) (3,980,922)
------------ ------------
1,032,555 1,101,431
Equipment held for sale -- 273,785
------------ ------------
Net equipment $ 1,032,555 $ 1,375,216
============ ============
With the exception of two trailers, all of the equipment was either on
lease or operating in PLM-affiliated short-term rental facilities as of
March 31, 1995. The carrying value of equipment off-lease was $16,119
and $164,271 at March 31, 1995 and December 31, 1994, respectively.
During the three months ended March 31, 1995, the Partnership sold five
twin stack railcars of which three railcars were off-lease at the end
of 1994, with a book value of $267,188 for proceeds of $503,260. During
the three months ended March 31, 1994, the Partnership sold one trailer
with a net book value of $6,019 for proceeds of $6,000.
-15-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
March 31, December 31,
1995 1994
Equipment held for operating leases, at cost $ 2,007,969 $ 3,041,954
Less accumulated depreciation (1,562,073) (2,332,144)
------------ ------------
Net equipment 445,896 709,810
Cash and cash equivalents 546,613 524,782
Accounts receivable, net of allowance for
doubtful accounts of $43,551 in 1995
and $6,481 in 1994 48,706 116,088
Due from affiliate 7,639 1,744
Prepaid insurance and other assets 32,338 37,668
------------ ------------
Total assets $ 1,081,192 $ 1,390,092
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and other liabilities $ 22,696 $ 5,060
Partners' capital (deficit):
Limited Partners (9,529 units) 1,089,738 1,413,009
General Partner (31,242) (27,977)
------------ ------------
Total partners' capital 1,058,496 1,385,032
------------ ------------
Total liabilities and partners'
capital $ 1,081,192 $ 1,390,092
============ ============
See accompanying notes to financial
statements.
-16-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
For the three months
ended March 31,
1995 1994
Revenues:
Lease revenue $ 79,538 $ 128,227
Interest and other income 8,651 4,132
Gain on disposition of equipment 15,453 4,281
--------- ---------
Total revenues 103,642 136,641
Expenses:
Depreciation 35,953 43,519
Management fees to affiliate 6,383 14,636
Repairs and maintenance 21,879 6,559
General and administrative expenses to affiliates 22,611 18,885
Other general and administrative expenses 22,664 5,162
Bad debt expense 37,070 7,046
--------- ---------
Total expenses 146,560 95,807
--------- ---------
Net income (loss) $ (42,918) $ 40,834
========= =========
Partners' share of net income (loss):
Limited Partners-99% $ (42,489) $ 40,426
General Partner-1% (429) 408
--------- ---------
Total $ (42,918) $ 40,834
========= =========
Net income (loss) per Limited Partnership Unit
(9,529 units) $ (4.46) $ 4.24
========= =========
Cash distributions $ 283,618 $ 147,799
========= =========
Cash distribution per Limited Partnership Unit $ 29.47 $ 15.36
========= =========
See accompanying notes to financial
statements.
-17-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period ended December 31, 1993 to March 31, 1995
Limited General
Partners Partner Total
Partners' capital (deficit)
at December 31, 1993 $ 1,615,924 $ (25,928) $ 1,589,996
Net income 191,753 1,937 193,690
Cash distributions (394,668) (3,986) (398,654)
----------- ----------- -----------
Partners' capital (deficit)
at December 31, 1994 1,413,009 (27,977) 1,385,032
Net loss (42,489) (429) (42,918)
Cash distributions (280,782) (2,836) (283,618)
----------- ----------- -----------
Partners' capital (deficit)
at March 31, 1995 $ 1,089,738 $ (31,242) $ 1,058,496
=========== =========== ===========
See accompanying notes to financial
statements.
-18-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the three months ended
March 31,
-------------------
1995 1994
---------- -------
Operating activities:
Net income (loss) $ (42,918) $ 40,834
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Gain on disposition of equipment (15,453) (4,281)
Depreciation 35,953 43,519
Change in operating assets and liabilities
Accounts receivable, net 67,382 28,081
Due from affiliate (5,895) (2,665)
Prepaid insurance and other assets 534 99
Accounts payable and other liabilities 17,636 (8,370)
---------- ----------
Net cash provided by operating activities 57,239 97,217
---------- ----------
Investing activities:
Proceeds from disposition of equipment 243,414 6,583
Payments received on finance leases 4,796 4,340
---------- ----------
Net cash provided by investing activities 248,210 10,923
---------- ----------
Cash flow used in financing activities:
Cash distributions paid to partners (283,618) (147,799)
---------- ----------
Cash and cash equivalents:
Net increase (decrease) in cash and cash equivalents 21,831 (39,659)
Cash and cash equivalents at beginning of period 524,782 528,006
---------- ----------
Cash and cash equivalents at end of period $ 546,613 $ 488,407
========== ==========
See accompanying notes to financial
statements.
-19-
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 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 only of normal recurring
accruals, to present fairly the Partnership's financial position as of
March 31, 1995, and 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:
March 31, December 31,
1995 1994
Marine Containers $ 402,481 $ 417,961
Trailers 1,605,488 2,623,993
----------- -----------
2,007,969 3,041,954
Less accumulated depreciation (1,562,073) (2,332,144)
----------- -----------
Net equipment $ 445,896 $ 709,810
=========== ===========
All equipment owned by the Partnership was either on lease or operating
in PLM-affiliated short-term rental facilities as of March 31, 1995.
During the three months ended March 31, 1995, the Partnership disposed
of or sold 24 trailers and eight marine containers with an aggregate
net book value of $227,961 for proceeds of $243,414. During the three
months ended March 31, 1994, the Partnership disposed of four marine
containers with a net book value of $2,302 for proceeds of $6,583.
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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' initial source of capital was proceeds from their
initial public 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, one trailer and two marine containers owned by TEP IXA were sold
or disposed of for a total of $26,353; one trailer and one marine container
owned by TEP IXB were sold for a total of $28,941; five twin stack railcars
owned by TEP IXC were sold for $503,260; and 24 trailers and eight marine
container owned by TEP IXD were sold or disposed of for $243,414.
Comparison of the Partnership's Operating Results for the Three Months Ended
March 31, 1995 and 1994
TEP IXA
(A) Revenues
Total revenues of $133,712 for the quarter ended March 31, 1995, increased from
$112,011 for the same period in 1994, due primarily to a gain recorded on the
sale of assets during 1995 compared to a loss during 1994.
(1) Lease revenue increased to $120,093 in the first quarter 1995, from $114,948
in the same period of 1994. The following table lists lease revenues earned by
equipment type:
For the three months ended
March 31,
1995 1994
---------- -------
Trailers $ 70,855 $ 54,447
Rail equipment 25,950 29,786
Marine containers 23,288 30,714
-------- --------
$120,093 $114,947
======== ========
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This increase was due primarily to the following:
(a) Trailer revenue increased $16,408 due to an increase in utilization
for TEP IXA trailers in short-term rental facilities in 1995 as compared to
1994. This increase was offset, in part, by a decrease in trailer revenue due to
the sale of 12 trailers, one yardster and one forklift in 1994 and one trailer
in 1995;
(b) Marine container revenue decreased $7,426 due to the disposal of
six marine containers in 1994 and two in 1995, and a decline in utilization of
the reefer fleet from 1994 levels;
(c) Rail revenue decreased $3,836 from 1994 levels due to the lower re-
lease rate on the trailmobile yardster.
(2) For the quarter ended March 31, 1995, the Partnership realized a gain of
$9,545 on the sale or disposition of one trailer and two marine containers,
compared to the same period in 1994, where the Partnership realized a loss of
$4,683 on the sale of nine trailers.
(B) Expenses
Total expenses of $241,211 for the quarter ended March 31, 1995, increased from
$202,655 for the same period in 1994. The increase in 1995 expenses was
attributable to increases in repairs and maintenance, partially offset by
decreases in depreciation expense.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$81,511 in 1995, from $36,285 in 1994. This increase was due primarily to the
refurbishment required on the Partnership's aircraft that came off-lease in the
beginning of 1995. This increase was slightly offset by a decrease in repairs
and maintenance for trailers in the short-term rental facilities. In the first
quarter of 1994, repairs were made on former term lease trailers prior to
transitioning into the short-term rental facilities.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, and all general and administrative expenses) decreased to $159,700 in the
first quarter 1995, from $166,370 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in depreciation expense of $10,257 from 1994 levels
reflecting assets sales during 1995 and 1994;
(b) an increase of $14,956 in general and administrative expenses from 1994
levels due to higher administrative costs associated with the Partnership.
(C) Net Loss
The Partnership's net loss increased to $107,499 in the first quarter 1995, from
a net loss of $90,644 in the same period in 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
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Partnership's performance in the first quarter 1995, is not necessarily
indicative of future periods. In the first quarter 1995, the Partnership
distributed $73,732 to the Limited Partners, or approximately $3.04 per unit.
TEP IXB
(A) Revenues
Total revenues of $169,393 for the quarter ended March 31, 1995, decreased from
$254,109 for the same period in 1994 due primarily to a smaller gain from the
sale of equipment in 1995 when compared to 1994.
(1) Lease revenue decreased to $145,558 in the first quarter 1995, from $166,974
in the same period in 1994. The following table lists lease revenues earned by
equipment type:
For the three months ended
March 31,
1995 1994
Trailers and tractors $ 72,503 $ 66,057
Aircraft 48,593 48,593
Rail equipment 16,027 42,150
Marine containers 8,435 10,174
--------- ---------
$ 145,558 $ 166,974
========= =========
The decline was due primarily to the following:
(a) Railcar revenue decreased $26,123 due to the sale of the letro
porter in the third quarter of 1994, and the off-lease status of the sidelift at
the beginning of the first quarter of 1995;
(b) Trailer and tractor revenue increased $6,446 due to an increase in
trailer revenues as trailers completed the transition from term leases to
operation in the short-term rental facilities. Trailers operating in short-term
rental facilities generate higher per day revenue than term lease trailers. The
revenue increases were offset by the sale of 13 tractors and six trailers in
1994 and one trailer in 1995.
(2) For the quarter ended March 31, 1995, the Partnership realized a gain of
$17,544 on the sale or disposition of one trailer and one marine container,
compared to the same period in 1994, where the Partnership realized a gain of
$84,546 on the sale of eight tractors.
(B) Expenses
Total expenses of $170,752 for the quarter ended March 31, 1995, increased
slightly from $167,576 for the same period in 1994. The increase in 1995
expenses was attributable primarily to increases in general and administrative
expenses, and bad debt expenses, partially offset by decreases in depreciation
and management fees.
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(1) Direct operating expenses (defined as repairs and maintenance) increased
slightly to $17,006 in the first quarter 1995, from $16,734 in the same period
in 1994. This increase was attributable to an increase in shop repairs for the
Partnership's railcars, offset by a decrease in repairs and maintenance due to
the sale of six trailers in 1994 and one trailer in 1995.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, all general and administrative expenses, and bad debt expense) increased
slightly to $153,746 in the first quarter 1995, from $150,842 in the same period
in 1994. This change resulted primarily from:
(a) an increase of $20,791 in general and administrative expenses from
1994 levels. This reflects the increased administrative costs associated with
the short-term rental facilities due to increased volume of trailers operating
in these facilities;
(b) an increase of $22,833 in bad debt expense due to the General
Partner's evaluation of the collectability of receivables due from trailer
rental yard lessees;
(c) a decrease in depreciation expense of $36,616 from 1994 levels
reflecting assets sales during 1995 and 1994;
(d) a decrease in management fees to affiliate of $4,104 from 1994
levels due to lower levels of operating cash flow during the comparable periods.
Management fees are calculated as the greater of 10% of the Partnership's
Operating Cash Flow, or 1/2 of 1/2% of the Partnership's Capital Contributions
as defined in the Limited Partnership Agreement.
(C) Net Income (Loss)
The Partnership's net loss of $1,359 in the first quarter 1995, decreased from a
net income of $86,533 in the same period in 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 1995, is not necessarily
indicative of future periods. In the first quarter 1995, the Partnership
distributed $233,170 to the Limited Partners, or approximately $13.35 per unit.
TEP IXC
(A) Revenues
Total revenues for the quarter ended March 31, 1995, increased to $433,123 from
$220,990 for the same period in 1994, due primarily to a gain recorded from the
sale of assets in 1995 compared to a loss on the sale of assets during 1994.
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<PAGE>
(1) Lease revenue decreased to $190,510 in the first quarter 1995, from $219,781
in the same period in 1994. The following table lists lease revenues earned by
equipment type:
For the three months ended
March 31,
1995 1994
Trailers and tractors $ 153,328 $ 173,655
Aircraft 17,100 21,863
Rail equipment 16,934 21,183
Marine containers 3,148 3,080
--------- ---------
$ 190,510 $ 219,781
========= =========
The decline was due primarily to the following:
(a) Trailer revenue decreased $20,327 in 1995 as compared to 1994
levels due to lower utilization in short-term rental facilities in 1995 compared
to 1994 levels, and the sale of four trailers in 1994;
(b) Aircraft revenue decreased $4,763 in 1995, as compared to 1994
levels, due to the terms of the original lease agreement which called for a
decrease in rate for 1995;
(c) Rail revenue decreased $4,249 in 1995 as compared to 1994 levels
due to the sale of five twin stack railcars in the first quarter of 1995.
(2) For the quarter ended March 31, 1995, the Partnership realized a gain of
$236,072 on the sale of five twin stack railcars, compared to the same period in
1994, where the Partnership realized a loss of $19 on the sale of one trailer.
(3) Interest and other income increased $5,313 due to an increase in excess cash
available for short-term investment.
(B) Expenses
Total expenses of $194,905 for the quarter ended March 31, 1995, increased from
$189,385 for the same period in 1994. The increase in 1995 expenses was
attributable to increases in repairs and maintenance, offset by decreases in
depreciation and management fees.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$48,958 in the first quarter 1995, from $24,890 in the same period in 1994. This
increase was attributable to higher maintenance expense incurred on the
increased trailers in the short-term rental facilities as compared to the same
period in 1994 when some rental yard trailers were on net term leases.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, and all general and administrative expenses) decreased to $145,947 in the
first quarter 1995, from $164,495 in the same period in 1994.
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<PAGE>
This change resulted primarily from:
(a) a decrease in general and administrative expenses of $7,014 due to
lower administrative costs associated with the Partnership;
(b) a decrease in depreciation expense of $6,358 from 1994 levels
reflecting asset sales during 1995;
(c) a decrease in management fees to affiliate of $5,176 from 1994 levels
due to lower levels of operating cash flows during 1995. 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 Capital Contributions as defined in the
Limited Partnership Agreement.
(C) Net Income
The Partnership's net income increased to $238,218 in the first quarter 1995,
from $31,605 in the same period in 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 1995, is not necessarily
indicative of future periods. In the first quarter 1995, the Partnership
distributed $153,473 to the Limited Partners, or approximately $9.07 per unit.
TEP IXD
(A) Revenues
Total revenues of $103,642 for the quarter ended March 31, 1995 decreased from
$136,641 for the same period in 1994 due primarily to lower lease revenues.
(1) Lease revenues decreased to $79,538 in the first quarter 1995, from $128,227
in the same period in 1994. The following table lists lease revenue earned by
equipment type:
For the three months ended
March 31,
1995 1994
Trailers $ 57,210 $ 110,767
Marine containers 22,328 17,460
--------- ---------
$ 79,538 $ 128,227
========= =========
The decrease was due to the following:
(a) Trailer revenue decreased $53,557 due primarily to the sale of 24
trailers in the first quarter of 1995, and low utilization in short-term rental
facilities operated by an affiliate of the General Partner;
(b) Marine container revenue increased $4,868 primarily due to an
increase in utilization for dry marine containers from 1994 levels, offset by a
decrease in revenue due to the disposal of eight marine containers in 1995 and
24 in 1994.
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<PAGE>
(2) For the quarter ended March 31, 1995, the Partnership realized a gain of
$15,453 on the sale of 24 trailers and eight marine containers, compared to the
same period in 1994, where the Partnership realized a gain $4,281 on the
disposition of four marine containers.
(3) Interest and other income increased $4,522 due to an increase in excess cash
available for short-term investment.
(B) Expenses
Total expenses of $146,560 for the quarter ended March 31, 1995, increased from
$95,807 for the same period in 1994. The increase in 1995 expenses was
attributable primarily to increases in bad debt expense, all general and
administrative expenses and repair and maintenance, partially offset by
decreases in management fees and depreciation.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$21,879 in the first quarter 1995, from $6,559 in the same period in 1994. This
change resulted primarily from the refurbishment of 24 trailers prior to being
sold.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, bad debt expense, and all general and administrative expenses) increased
to $124,681 in the first quarter 1995, from $89,248 in the same period in 1994.
This change resulted primarily from:
(a) an increase of $30,024 in bad debt expense due to the General Partner's
evaluation of the collectibility of trade receivables from trailer rental yard
lessees;
(b) an increase of $21,228 in general and administrative expenses from 1994
levels due to higher administrative costs associated with the short-term rental
facilities;
(c) a decrease in management fees to affiliate of $8,253 from 1994 levels
due to changes in the level of operating cash flow between the two years.
Management fees are calculated monthly as the greater of 10% of Partnership's
Operating Cash Flow, or 1/12 of 1/2% of the Partnership's Capital Contributions
as defined in the Limited Partnership Agreement;
(d) a decrease in depreciation expense of $7,566 from 1994 levels,
reflecting asset sales during 1995.
(C) Net Income (Loss)
The Partnership's net loss of $42,918 in the first quarter 1995, decreased from
a net income of $40,834 in the same period in 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 1995, is not necessarily
indicative of future periods. In the first quarter 1995, the Partnership
distributed $280,782 to the Limited Partners, or approximately $29.47 per unit.
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Trends
Inflation and changing prices did not materially impact the
Partnerships' revenues or expenses during the reported periods.
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<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
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<PAGE>
Pursuant to the requirements of Securities and Exchange 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 IXA 1986 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
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<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 241,489
<SECURITIES> 0
<RECEIVABLES> 22,568
<ALLOWANCES> 121,154
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 7,395,987
<DEPRECIATION> 5,995,253
<TOTAL-ASSETS> 1,674,796
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 1,643,094
<TOTAL-LIABILITY-AND-EQUITY> 1,674,796
<SALES> 0
<TOTAL-REVENUES> 133,712
<CGS> 0
<TOTAL-COSTS> 241,211
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (107,499)
<INCOME-TAX> 0
<INCOME-CONTINUING> (107,499)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (107,499)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
