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 June 30, 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 0-15439
-----------------------
PLM Transportation Equipment Partners IXC 1986
Income Fund
(Exact name of registrant as specified in its charter)
California 94-2992020
(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
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
Equipment held for operating leases, at cost $ 4,292,291 $ 7,462,921
Less accumulated depreciation (3,501,206) (5,944,395)
Net equipment 791,085 1,518,526
Cash and cash equivalents 202,533 298,718
Accounts receivable, net of allowance for doubtful
accounts of $122,133 in 1995 and $121,925 in 1994 22,639 34,620
Net investment in sales-type lease 1,090,000 --
Due from affiliates 2,941 --
Prepaid insurance 1,427 3,623
Total assets $ 2,110,625 $ 1,855,487
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ -- $ 2,732
Accounts payable 52,575 4,112
Prepaid deposits 26,473 23,574
Total liabilities 79,048 30,418
Partners' capital (deficit):
Limited Partners (24,285 units) 2,118,215 1,913,772
General Partner (86,638) (88,703)
Total partners' capital 2,031,577 1,825,069
Total liabilities and partners' capital $ 2,110,625 $ 1,855,487
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 120,131 $ 153,361 $ 240,224 $ 268,309
Interest and other income 3,021 1,690 7,095 3,436
Gain (loss) on disposition of equipment 535,795 -- 545,340 (4,683)
Total revenues 658,947 155,051 792,659 267,062
Expenses:
Depreciation 99,640 109,546 201,500 221,663
Management fees to affiliate 15,178 15,179 30,356 30,610
Repairs and maintenance 24,308 30,499 105,819 66,784
General and administrative
expenses to affiliates 30,045 30,496 60,724 43,706
Other general and administrative expenses 26,829 45,335 38,812 70,947
Total expenses 196,000 231,055 437,211 433,710
Net income (loss) $ 462,947 $ (76,004) $ 355,448 $ (166,648)
Partners' share of net income (loss)
Limited Partners - 99% $ 458,318 $ (75,244) $ 351,894 $ (164,982)
General Partner - 1% 4,629 (760) 3,554 (1,666)
Total $ 462,947 $ (76,004) $ 355,448 $ (166,648)
Net income (loss) per Limited
Partnership Unit - 24,285 units $ 18.87 $ (3.10) $ 14.49 $ (6.79)
Cash distributions $ 74,464 $ 120,521 $ 148,940 $ 241,043
Cash distributions per Limited
Partnership Unit $ 3.04 $ 4.91 $ 6.07 $ 9.83
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period from December 31, 1993 to June 30, 1995
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
<S> <C> <C> <C>
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 income 351,894 3,554 355,448
Cash distributions (147,451) (1,489) (148,940)
Partners' capital (deficit)
at June 30, 1995 $ 2,118,215 $ (86,638) $ 2,031,577
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the six months
ended June 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income (loss) $ 355,448 $ (166,648)
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
(Gain) loss on disposition of equipment (545,340) 4,683
Depreciation 201,500 221,663
Changes in operating assets and liabilities
Accounts receivable, net 11,981 71,283
Due to/from affiliates (5,673) (11,183)
Prepaid insurance 2,196 3,980
Accounts payable 48,463 (74,531)
Prepaid deposits (47,101) (2,430)
Net cash provided by operating activities 21,474 46,817
Investing activities:
Proceeds from disposition of equipment 32,157 59,600
Payments for purchase of capital improvements (876) --
Net cash provided by investing activities 31,281 59,600
Cash flows used in financing activities:
Cash distributions paid to partners (148,940) (241,043)
Cash and cash equivalents:
Net decrease in cash and cash equivalents (96,185) (134,626)
Cash and cash equivalents at beginning of period 298,718 335,234
Cash and cash equivalents at end of period $ 202,533 $ 200,608
Supplemental disclosure of noncash investing activities:
Sales proceeds receivable from sales type lease included in A/R $ 1,090,000 $ --
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 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 June 30, 1995, the statements of
operations for the three and six months ended June 30, 1995 and 1994, the
statements of changes in partners' capital for the period from December 31, 1993
to June 30, 1995, and the statements of cash flows for the six months ended June
30, 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. Equipment
Equipment held for operating leases is stated at cost. The components of
equipment are as follows:
June 30, December 31,
1995 1994
Rail equipment $ 783,870 $ 783,870
Marine containers 1,470,761 1,526,759
Commuter aircraft -- 3,076,382
Trailers 2,037,660 2,075,910
4,292,291 7,462,921
Less accumulated depreciation (3,501,206) (5,944,395)
Net equipment $ 791,085 $ 1,518,526
All equipment was either on lease or operating in PLM affiliated short-term
rental facilities as of June 30, 1995. With the exception of the commuter
aircraft, all equipment was either on lease or operating in PLM-affiliated
short-term rental facilities as of December 31, 1994. The carrying value of the
off-lease equipment was $595,620 at December 31, 1994.
During the six months ended June 30, 1995, the Partnership sold or disposed of
one trailer and five marine containers with an aggregate net book value of
$21,367 for proceeds of $32,157. Additionally, the Partnership entered into a
sales-type lease related to a commuter aircraft with a carrying value of
$505,450 for a sales price equal to the present value of the future lease
payments ($1,090,000) less a $50,000 reserve for future costs of sale. Gross
lease payments of $234,000 will be received over a one year period, commencing
in June 1995, with an additional balloon payment of $919,012 due at the end of
the lease term. During the six months ended June 30, 1994, the Partnership sold
nine trailers with a book value of $64,283 for proceeds of $59,600.
3. Investment in Sales-type Lease
On May 30, 1995, the Partnership entered into a sales-type lease for the purpose
of selling a commuter aircraft. The lease is structured with a one year term
commencing June 1995. The lessee will make monthly payments of $19,500. Gross
lease payments of $234,000 will be received over a one year period, commencing
in June 1995, with an additional balloon payment of $919,012 due at the end of
the lease term.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
Equipment held for operating leases, at cost $ 4,714,054 $ 5,309,856
Less accumulated depreciation (3,822,801) (4,180,140)
Net equipment 891,253 1,129,716
Cash and cash equivalents 443,768 492,060
Accounts receivable, net of allowance for doubtful
accounts of $36,020 in 1995 and $17,600 in 1994 36,306 66,451
Prepaid insurance 1,178 2,960
Total assets $ 1,372,505 $ 1,691,187
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 3,338 $ 6,063
Accounts payable and other liabilities 2,675 11,411
Prepaid deposits 17,485 16,384
Total liabilities 23,498 33,858
Partners' capital (deficit):
Limited Partners (17,460 units) 1,412,383 1,717,622
General Partner (63,376) (60,293)
Total partners' capital 1,349,007 1,657,329
Total liabilities and partners' capital $ 1,372,505 $ 1,691,187
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 115,086 $ 226,054 $ 260,644 $ 393,028
Interest and other income 5,081 3,381 11,372 5,970
Gain (loss) on disposition of equipment 55,010 (10,724) 72,554 73,822
Total revenues 175,177 218,711 344,570 472,820
Expenses:
Depreciation 66,433 93,229 137,531 200,943
Management fees to affiliate 10,912 10,913 21,825 25,930
Repairs and maintenance 9,851 36,539 26,857 53,273
General and administrative
expenses to affiliates 23,563 20,940 52,856 38,252
Other general and administrative expenses 1,956 28,665 44,398 39,464
Total expenses 112,715 190,286 283,467 357,862
Net income $ 62,462 $ 28,425 $ 61,103 $ 114,958
Partners' share of net income
Limited Partners - 99% $ 61,837 $ 28,141 $ 60,492 $ 113,808
General Partner - 1% 625 284 611 1,150
Total $ 62,462 $ 28,425 $ 61,103 $ 114,958
Net income per Limited
Partnership Unit - 17,460 units $ 3.54 $ 1.61 $ 3.46 $ 6.52
Cash distributions $ 133,900 $ 238,869 $ 369,425 $ 431,744
Cash distributions per Limited
Partnership Unit $ 7.59 $ 13.54 $ 20.95 $ 24.48
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period from December 31, 1993 to June 30, 1995
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
<S> <C> <C> <C>
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 income 60,492 611 61,103
Cash distributions (365,731) (3,694) (369,425)
Partners' capital (deficit)
at June 30, 1995 $ 1,412,383 $ (63,376) $ 1,349,007
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the six months ended
June 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 61,103 $ 114,958
Adjustments to reconcile net income
to net cash provided by operating activities:
Gain on disposition of equipment (72,554) (73,822)
Depreciation 137,531 200,943
Changes in operating assets and liabilities:
Accounts receivable, net 30,145 (7,507)
Prepaid insurance 1,782 3,381
Due to affiliates (2,725) 1,463
Accounts payable (8,736) (6,888)
Prepaid deposits 1,101 2,265
Net cash provided by operating activities 147,647 234,793
Investing activities:
Proceeds from disposition of equipment 175,606 161,750
Payments for purchase of capital improvements (2,120) --
Net cash provided by investing activities 173,486 161,750
Cash flows used in financing activities:
Cash distributions paid to partners (369,425) (431,744)
Cash and cash equivalents:
Net decrease in cash and cash equivalents (48,292) (35,201)
Cash and cash equivalents at beginning of period 492,060 455,659
Cash and cash equivalents at end of period $ 443,768 $ 420,458
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 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 June 30, 1995, the statements of income
for the three and six months ended June 30, 1995 and 1994, the statements of
changes in partners' capital for the period from December 31, 1993 to June 30,
1995, and the statements of cash flows for the six months ended June 30, 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. Equipment
Equipment held for operating leases is stated at cost. The components of
equipment at June 30, 1995, and December 31, 1994, are as follows:
June 30, December 31,
1995 1994
Rail equipment $ 867,300 $ 867,300
Marine containers 418,653 483,606
Aircraft 1,492,368 1,492,368
Trailers and tractors 1,935,733 2,466,582
4,714,054 5,309,856
Less accumulated depreciation (3,822,801) (4,180,140)
Net equipment $ 891,253 $ 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 June 30, 1995. With the
exception of 19 trailers, all equipment was on lease or operating in PLM
affiliated short-term rental facilities as of December 31, 1994. The carrying
value of the off-lease equipment was $86,242 and $152,349 at June 30, 1995 and
December 31, 1994, respectively.
During the six months ended June 30, 1995, the Partnership sold or disposed of
14 trailers and three marine containers with an aggregate net book value of
$103,052 for proceeds of $175,606. During the six months ended June 30, 1994,
the Partnership sold or disposed of eight tractors, five trailers and one marine
container with an aggregate net book value of $87,928 for proceeds of $161,750.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
Equipment held for operating leases, at cost $ 4,983,352 $ 5,082,353
Less accumulated depreciation (4,037,037) (3,980,922)
946,315 1,101,431
Equipment held for sale -- 273,785
Net equipment 946,315 1,375,216
Cash and cash equivalents 295,045 312,230
Restricted cash 6,600 6,600
Accounts receivable, net of allowance for doubtful
accounts of $30,368 in 1995 and $31,642 in 1994 82,788 106,868
Due from affiliates 4,727 20,035
Prepaid insurance and other assets 23,901 28,583
Total assets $ 1,359,376 $ 1,849,532
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable $ 4,633 $ 8,178
Prepaid deposits and reserves 22,526 48,612
Total liabilities 27,159 56,790
Partners' capital (deficit):
Limited Partners (16,914 units) 1,393,356 1,849,276
General Partner (61,139) (56,534)
Total partners' capital 1,332,217 1,792,742
Total liabilities and partners' capital $ 1,359,376 $ 1,849,532
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 171,549 $ 249,014 $ 362,059 $ 468,795
Interest and other income 7,435 1,899 13,976 3,127
Gain (loss) on disposition of equipment (1,628) 505 234,444 486
Total revenues 177,356 251,418 610,479 472,408
Expenses:
Depreciation 68,474 81,268 143,947 163,099
Management fees to affiliate 10,568 10,568 24,217 29,393
Repairs and maintenance 38,325 33,250 87,283 58,140
General and administrative
expenses to affiliates 43,110 48,005 91,393 96,228
Other general and administrative expenses 6,200 34,693 14,742 50,309
Total expenses 166,677 207,784 361,582 397,169
Net income $ 10,679 $ 43,634 $ 248,897 $ 75,239
Partners' share of net income:
Limited Partners - 99% $ 10,572 $ 43,198 $ 246,408 $ 74,487
General Partner - 1% 107 436 2,489 752
Total $ 10,679 $ 43,634 $ 248,897 $ 75,239
Net income per Limited
Partnership Unit (16,914 units) $ 0.62 $ 2.55 $ 14.57 $ 4.40
Cash distributions $ 554,399 $ 94,521 $ 709,422 $ 189,041
Cash distributions per Limited
Partnership Unit $ 32.45 $ 5.53 $ 41.52 $ 11.06
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period from December 31, 1993 to June 30, 1995
<TABLE>
<CAPTION>
.
Limited General
Partners Partners Total
<S> <C> <C> <C>
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 246,408 2,489 248,897
Cash distributions (702,328) (7,094) (709,422)
Partners' capital (deficit)
at June 30, 1995 $ 1,393,356 $ (61,139) $ 1,332,217
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the six months ended
June 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 248,897 $ 75,239
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain on disposition of equipment (234,444) (486)
Depreciation 143,947 163,099
Change in operating assets and liabilities
Restricted cash -- (12,556)
Accounts receivable, net 24,080 25,451
Due from affiliates 15,308 (12,242)
Prepaid deposits and reserves (26,086) 19,844
Prepaid expenses and other assets 2,254 4,024
Accounts payable and other liabilities (3,545) (13,588)
Net cash provided by operating activities 170,411 248,785
Investing activities:
Proceeds from disposition of equipment 520,760 31,000
Payments for purchase of capital improvements (1,362) (3,925)
Payments received on finance leases 2,428 2,199
Net cash provided by investing activities 521,826 29,274
Cash flows used in financing activities:
Cash distributions paid to partners (709,422) (189,041)
Cash and cash equivalents:
Net (decrease) increase in cash and cash equivalents (17,185) 89,018
Cash and cash equivalents at beginning of period 312,230 131,540
Cash and cash equivalents at end of period $ 295,045 $ 220,558
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 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 June 30, 1995, the statements of income
for the three and six months ended June 30, 1995 and 1994, the statements of
changes in partners' capital for the period from December 31, 1993 to June 30,
1995, and the statements of cash flows for the six months ended June 30, 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. 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:
June 30, December 31,
1995 1994
Rail equipment $ 178,501 $ 178,501
Marine containers 160,473 160,473
Aircraft 913,188 913,188
Trailers and tractors 3,731,190 3,830,191
4,983,352 5,082,353
Less accumulated depreciation (4,037,037) (3,980,922)
946,315 1,101,431
Equipment held for sale -- 273,785
Net equipment $ 946,315 $ 1,375,216
All of the equipment was either on lease or operating in PLM-affiliated
short-term rental facilities as of June 30, 1995. With the exception of three
railcars and three trailers, all of the equipment was either on lease or
operating in PLM affiliated short-term rental facilities as of December 31,
1994. The carrying value of equipment off-lease was $189,876 at December 31,
1994.
During the six months ended June 30, 1995, the Partnership sold three trailers
and five twin stack railcars of which three railcars were off-lease at the end
of 1994, with an aggregate net book value of $286,316 for proceeds of $520,760.
During the six months ended June 30, 1994, the Partnership sold or disposed of
two trailers and one marine container with an aggregate net book value of
$30,514 for proceeds of $31,000.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
Equipment held for operating leases, at cost $ 1,733,051 $ 3,041,954
Less accumulated depreciation (1,371,024) (2,332,144)
Net equipment 362,027 709,810
Cash and cash equivalents 388,717 524,782
Accounts receivable, net of allowance for doubtful
accounts of $42,681 in 1995 and $6,481 in 1994 46,004 116,088
Due from affiliates 7,639 1,744
Prepaid insurance and other assets 26,668 37,668
Total assets $ 831,055 $ 1,390,092
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and other liabilities $ 133 $ 5,060
Partners' capital (deficit):
Limited Partners (9,529 units) 864,440 1,413,009
General Partner (33,518) (27,977)
Total partners' capital 830,922 1,385,032
Total liabilities and partners' capital $ 831,055 $ 1,390,092
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 75,733 $ 140,046 $ 155,271 $ 268,273
Interest and other income 6,790 5,016 15,441 9,148
Gain on disposition of equipment 36,886 -- 52,339 4,281
Total revenues 119,409 145,062 223,051 281,702
Expenses:
Depreciation 25,507 43,409 61,460 86,928
Management fees to affiliate 5,956 6,246 12,339 20,882
Repairs and maintenance 10,540 7,344 32,419 13,903
General and administrative
expenses to affiliates 18,741 22,156 41,352 41,041
Other general and administrative expenses 6,250 19,447 28,914 24,610
Bad debt expense (764) 4,906 36,306 11,951
Total expenses 66,230 103,508 212,790 199,315
Net income $ 53,179 $ 41,554 $ 10,261 $ 82,387
Partners' share of net income:
Limited Partners - 99% $ 52,647 $ 41,139 $ 10,158 $ 81,564
General Partner - 1% 532 415 103 823
Total $ 53,179 $ 41,554 $ 10,261 $ 82,387
Net income per Limited
Partnership Unit (9,529 units) $ 5.52 $ 4.32 $ 1.07 $ 8.56
Cash distributions $ 280,753 $ 83,618 $ 564,371 $ 231,417
Cash distributions per Limited
Partnership Unit $ 29.17 $ 8.69 $ 58.63 $ 24.04
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the period from December 31, 1993 to June 30, 1995
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
<S> <C> <C> <C>
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 income 10,158 103 10,261
Cash distributions (558,727) (5,644) (564,371)
Partners' capital (deficit)
at June 30, 1995 $ 864,440 $ (33,518) $ 830,922
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the six months ended
June 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 10,261 $ 82,387
Adjustments to reconcile net income to net
cash provided by operating activities:
Gain on disposition of equipment (52,339) (4,281)
Depreciation 61,460 86,928
Changes in operating assets and liabilities
Accounts receivable, net 70,084 35,292
Due from affiliate (5,895) (18,690)
Prepaid insurance and other assets 1,287 1,386
Accounts payable and other liabilities (4,927) 7,287
Net cash provided by operating activities 79,931 190,309
Investing activities:
Proceeds from disposition of equipment 338,662 6,584
Payments received on finance leases 9,713 8,791
Net cash provided by investing activities 348,375 15,375
Cash flows used in financing activities:
Cash distributions paid to partners (564,371) (231,417)
Cash and cash equivalents:
Net decrease in cash and cash equivalents (136,065) (25,733)
Cash and cash equivalents at beginning of period 524,782 528,066
Cash and cash equivalents at end of period $ 388,717 $ 502,333
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 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 June 30, 1995, and the statements of
income for the three and six months ended June 30, 1995 and 1994, the statements
of changes in partners' capital for the period from December 31, 1993 to June
30, 1995, and the statements of cash flows for the six months ended June 30,
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. Equipment
Equipment held for operating leases is stated at cost. The components of
equipment are as follows:
June 30, December 31,
1995 1994
Marine containers $ 365,716 $ 417,961
Trailers 1,367,335 2,623,993
1,733,051 3,041,954
Less accumulated depreciation (1,371,024) (2,332,144)
Net equipment $ 362,027 $ 709,810
All equipment owned by the Partnership was either on lease or operating in
PLM-affiliated short-term rental facilities as of June 30, 1995. With the
exception of 24 trailers, all equipment was either on lease or operating in PLM
affiliated short-term rental facilities as of December 31, 1994. The carrying
value of the off-lease equipment was $224,848 at December 31, 1994.
During the six months ended June 30, 1995, the Partnership sold or disposed of
30 trailers and 27 marine containers with an aggregate net book value of
$286,323 for proceeds of $338,662. During the six months ended June 30, 1994,
the Partnership disposed of four marine containers with a net book value of
$2,303 for proceeds of $6,584.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Liquidity and Capital Resources
(A) Sources
The Partnerships' primary source of liquidity is operating cash flow. Proceeds
realized from the sale or disposal of equipment are generally distributed to the
partners. The Partnerships' 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 six months ended
June 30, 1995, one trailer and five marine containers owned by TEP IXA were sold
or disposed of for a total of $32,157. Additionally, the Partnership entered
into a sales-type lease related to a commuter aircraft. The Partnership will
receive future lease payments totaling $234,000 with an additional balloon
payment of $919,012 at the end of the lease term; 14 trailers and three marine
containers owned by TEP IXB were sold for a total of $175,606; five twin stack
railcars and three trailers owned by TEP IXC were sold for $520,760; and 30
trailers and 27 marine container owned by TEP IXD were sold or disposed of for
$338,662.
Comparison of the Partnership's Operating Results for the Three Months Ended
June 30, 1995 and 1994
TEP IXA
(A) Revenues
Total revenues of $658,947 for the quarter ended June 30, 1995, increased from
$155,051 for the same period in 1994, due primarily to a gain recorded on the
sale of assets during the second quarter of 1995, compared to no sales during
the same period in 1994.
(1) Lease revenue decreased to $120,131 in the second quarter 1995, from
$153,361 in the same period of 1994. The following table lists lease revenues
earned by equipment type:
For the three months ended
June 30,
1995 1994
Trailers $ 71,754 $ 101,020
Rail equipment 25,950 25,950
Marine containers 22,427 26,391
$ 120,131 $ 153,361
This increase was due primarily to the following:
(a) Trailer revenue decreased $29,266 due to the sale of 12 trailers, one
yardster and one forklift in 1994, and one trailer in 1995;
(b) Marine container revenue decreased $3,964 due to the disposal of six
marine containers in 1994, and five in 1995, and a decline in utilization of the
reefer fleet from 1994 levels.
(2) For the quarter ended June 30, 1995, the Partnership realized a gain of
$535,795 on the sale or disposition of three marine containers and one aircraft
which was structured as a sales-type lease. The
<PAGE>
Partnership will receive future lease payments totaling $234,000 with an
additional balloon payment of $919,012 at the end of the one-year lease term
related to the aircraft.
(B) Expenses
Total expenses of $196,000 for the quarter ended June 30, 1995, decreased from
$231,055 for the same period in 1994. The decrease in 1995 expenses was
attributable to decreases in all general and administrative expenses,
depreciation expense, and repairs and maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) decreased to
$24,308 in 1995, from $30,499 in 1994, due to a decrease in repairs and
maintenance for trailers in the short-term rental facilities. In the second
quarter of 1994, repairs were made on former term lease trailers prior to
transitioning into the short-term rental facilities. The decrease in trailer
repair costs was offset, in part, by an increase in repairs and maintenance due
to the refurbishment on the Partnership's aircraft prior to being sold.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, and all general and administrative expenses) decreased to $171,692 in the
second quarter 1995, from $200,556 in the same period in 1994. This change
resulted primarily from:
(a) a decrease of $18,959 in general and administrative expenses from 1994
levels due to lower administrative costs associated with the Partnership;
(b) a decrease in depreciation expense of $9,906 from 1994 levels
reflecting asset sales or dispositions during 1995 and 1994.
(C) Net Income (Loss)
The Partnership's net income increased to $462,947 in the second quarter 1995,
from a net loss of $76,004 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 second quarter 1995, is not necessarily
indicative of future periods. In the second quarter 1995, the Partnership
distributed $73,719 to the Limited Partners, or approximately $3.04 per unit.
TEP IXB
(A) Revenues
Total revenues of $175,177 for the quarter ended June 30, 1995, decreased from
$218,711 for the same period in 1994 due primarily to lower lease revenues
offset by a gain from the sale of equipment in the second quarter of 1995,
compared to a loss in the same period in 1994.
(1) Lease revenue decreased to $115,086 in the second quarter 1995, from
$226,054 in the same period in 1994. The following table lists lease revenues
earned by equipment type:
For the three months ended
June 30,
1995 1994
Aircraft $ 48,593 $ 48,593
Trailers and tractors 38,324 111,905
Rail equipment 21,870 57,051
Marine containers 6,299 8,505
$ 115,086 $ 226,054
<PAGE>
The decline was due primarily to the following:
(a) Trailer and tractor revenue decreased $73,581 due to the sale of 13
tractors and six trailers in 1994 and 14 trailers in 1995, offset by 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;
(b) Railcar revenue decreased $35,181 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 1995.
(2) For the quarter ended June 30, 1995, the Partnership realized a gain of
$55,010 on the sale or disposition of 13 trailers and two marine containers,
compared to the same period in 1994, where the Partnership realized a loss of
$10,724 on the sale or disposal of five trailers and one marine container.
(B) Expenses
Total expenses of $112,715 for the quarter ended June 30, 1995, decreased from
$190,286 for the same period in 1994. The decrease in 1995 expenses was
attributable primarily to decreases in repairs and maintenance, all general and
administrative expenses, and depreciation.
(1) Direct operating expenses (defined as repairs and maintenance) decreased to
$9,851 in the second quarter 1995, from $36,539 in the same period in 1994. This
decrease was attributable to the sale of six trailers in 1994 and 14 trailers in
1995 and a decrease in shop repairs for the Partnership's railcars.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, all general and administrative expenses, and bad debt expense) decreased
to $102,864 in the second quarter 1995, from $153,747 in the same period in
1994. This change resulted primarily from:
(a) a decrease in depreciation expense of $26,796 from 1994 levels
reflecting assets sales or dispositions during 1995 and 1994;
(b) a decrease of $24,086 in general and administrative expenses from 1994
levels due to lower administrative costs associated with the Partnership.
(C) Net Income
The Partnership's net income of $62,462 in the second quarter 1995, increased
from a net income of $28,425 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 second quarter 1995, is not
necessarily indicative of future periods. In the second quarter 1995, the
Partnership distributed $132,561 to the Limited Partners, or approximately $7.59
per unit.
TEP IXC
(A) Revenues
Total revenues for the quarter ended June 30, 1995, decreased to $177,356 from
$251,418 for the same period in 1994, due primarily to lower lease revenues.
(1) Lease revenue decreased to $171,549 in the second quarter 1995, from
$249,014 in the same period in 1994. The following table lists lease revenues
earned by equipment type:
<PAGE>
For the three months ended
June 30,
1995 1994
Trailers and tractors $ 143,501 $ 197,556
Aircraft 17,100 21,863
Rail equipment 9,175 27,875
Marine containers 1,773 1,720
$ 171,549 $ 249,014
The decline was due primarily to the following:
(a) Trailer revenue decreased $54,055 in 1995, as compared to 1994 levels
due to lower utilization in the short-term rental facilities in 1995 compared to
1994 levels, and the sale of three trailers in 1995;
(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 $18,700 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 June 30, 1995, the Partnership realized a loss of
$1,628 on the sale of three trailers, compared to the same period in 1994, where
the Partnership realized a gain of $505 on the sale or disposal of three
trailers and three marine containers.
(3) Interest and other income increased $5,536 due to an increase in cash
available for short-term investment.
(B) Expenses
Total expenses of $166,677 for the quarter ended June 30, 1995, decreased from
$207,784 for the same period in 1994. The decrease in 1995 expenses was
attributable to decreases in depreciation and all general and administrative
expenses, offset by increases in repairs and maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$38,325 in the second quarter 1995, from $33,250 in the same period in 1994.
This increase was attributable to higher maintenance expense incurred on the
increased number of 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 $128,352 in the
second quarter 1995, from $174,534 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in general and administrative expenses of $33,388 due to
lower administrative costs associated with the Partnership;
(b) a decrease in depreciation expense of $12,794 from 1994 levels
reflecting asset sales during 1995.
(C) Net Income
The Partnership's net income decreased to $10,679 in the second quarter 1995,
from $43,634 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 second quarter 1995, is not necessarily
indicative of future periods. In the second quarter 1995, the Partnership
distributed $548,855 to the Limited Partners, or approximately $32.45 per unit.
<PAGE>
TEP IXD
(A) Revenues
Total revenues of $119,409 for the quarter ended June 30, 1995 decreased from
$145,062 for the same period in 1994, due primarily to lower lease revenues,
offset by a gain on sale of equipment for the second quarter of 1995, compared
to no sales in the same period in 1994.
(1) Lease revenues decreased to $75,733 in the second quarter 1995, from
$140,046 in the same period in 1994. The following table lists lease revenue
earned by equipment type:
For the three months ended
June 30,
1995 1994
Trailers $ 57,241 $ 121,668
Marine containers 18,492 18,378
---------- ----------
$ 75,733 $ 140,046
Lease revenue decreased $64,427 due primarily to the sale of 30 trailers during
the first and second quarters of 1995, and lower utilization in short-term
rental facilities operated by an affiliate of the General Partner.
(2) For the quarter ended June 30, 1995, the Partnership realized a gain of
$36,886 on the sale or disposal of six trailers and 19 marine containers. There
were no sales or disposals for the same period in 1994.
(B) Expenses
Total expenses of $66,230 for the quarter ended June 30, 1995, decreased from
$103,508 for the same period in 1994. The decrease in 1995 expenses was
attributable primarily to decreases in depreciation, all general and
administrative expenses, and bad debt expense partially offset by an increase in
repair and maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$10,540 in the second quarter 1995, from $7,344 in the same period in 1994. This
change resulted primarily from the refurbishment of six trailers prior to being
sold.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, bad debt expense, and all general and administrative expenses) decreased
to $55,690 in the second quarter 1995, from $96,164 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in depreciation expense of $17,902 from 1994 levels,
reflecting asset sales or dispositions during 1995;
(b) a decrease of $16,612 in general and administrative expenses from 1994
levels due to lower administrative costs associated with the short-term rental
facilities;
(c) a decrease of $5,670 in bad debt expense due to the General Partner's
evaluation of the collectibility of trade receivables from trailer rental yard
lessees.
(C) Net Income
The Partnership's net income of $53,179 in the second quarter 1995, increased
from a net income of $41,554 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 second quarter 1995, is not
necessarily indicative of future periods. In the second quarter 1995, the
Partnership distributed $277,945 to the Limited Partners, or approximately
$29.17 per unit.
Comparison of the Partnership's Operating Results for the Six Months Ended June
30, 1995 and 1994
TEP IXA
(A) Revenues
Total revenues of $792,659 for the six months ended June 30, 1995, increased
from $267,062 for the same period in 1994, due primarily to a gain recorded on
the sale of assets during 1995 compared to a loss on assets sales in 1994.
(1) Lease revenue decreased to $240,224 in the six months ended June 30, 1995,
from $268,309 in the same period of 1994. The following table lists lease
revenues earned by equipment type:
For the six months ended
June 30,
1995 1994
Trailers $ 142,609 $ 166,775
Rail equipment 51,900 44,429
Marine containers 45,715 57,105
---------- ----------
$ 240,224 $ 268,309
The decline was due primarily to the following:
(a) Trailer revenue decreased $24,166 due to the sale of 12 trailers, one
yardster and one forklift in 1994 and one trailer in 1995;
(b) Marine container revenue decreased $11,390 due to the disposal of six
marine containers in 1994 and five in 1995, and a decline in utilization of the
reefer fleet from 1994 levels;
(c) Rail revenue increased $7,471 from 1994 levels due to a rental credit
which was given to a current lessee in the first quarter of 1994.
(2) For the six months ended June 30, 1995, the Partnership realized a gain of
$545,340 on the sale or disposition of one trailer, five marine containers, and
one commuter aircraft, compared to the same period in 1994, where the
Partnership realized a loss of $4,683 on the sale of nine trailers. The sale of
the commuter aircraft in the second quarter of 1995 was structured as a
sales-type lease. The Partnership will receive future lease payments totaling
$234,000 with an additional balloon payment of $919,012 at the end of the
one-year lease term.
(B) Expenses
Total expenses of $437,211 for the six months ended June 30, 1995, increased
slightly from $433,710 for the same period in 1994. The increase in 1995
expenses was attributable to increases in repairs and maintenance, offset by
decreases in depreciation expense and all general and administrative expenses.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$105,819 in 1995, from $66,784 in 1994. This increase was due primarily to the
refurbishment required on the Partnership's aircraft which 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 $331,392 in the
six months ended June 30, 1995, from $366,926 in the same period in 1994.
<PAGE>
This change resulted primarily from:
(a) a decrease in depreciation expense of $20,163 from 1994 levels
reflecting assets sales or dispositions during 1995 and 1994;
(b) a decrease of $15,117 in general and administrative expenses from 1994
levels due to lower administrative costs associated with the Partnership.
(C) Net Income (Loss)
The Partnership's net income increased to $355,448 in the six months ended June
30, 1995, from a net loss of $166,648 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 six months
ended June 30, 1995, is not necessarily indicative of future periods. In the six
months ended June 30, 1995, the Partnership distributed $147,451 to the Limited
Partners, or approximately $6.07 per unit.
TEP IXB
(A) Revenues
Total revenues of $344,570 for the six months ended June 30, 1995, decreased
from $472,820 for the same period in 1994 due primarily to lower lease revenue.
(1) Lease revenue decreased to $260,644 in the six months ended June 30, 1995,
from $393,028 in the same period in 1994. The following table lists lease
revenues earned by equipment type:
For the six months ended
June 30,
1995 1994
Trailers and tractors $ 110,826 $ 177,963
Aircraft 97,188 97,185
Rail equipment 37,897 99,202
Marine containers 14,733 18,678
---------- ----------
$ 260,644 $ 393,028
The decline was due primarily to the following:
(a) Railcar revenue decreased $61,305 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 1995;
(b) Trailer and tractor revenue decreased $67,137 due to the sale of 13
tractors and six trailers in 1994 and 14 trailers in 1995, offset by 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.
(2) For the six months ended June 30, 1995, the Partnership realized a gain of
$72,554 on the sale or disposition of 14 trailers and three marine containers,
compared to the same period in 1994, where the Partnership realized a gain of
$73,822 on the sale or disposal of eight tractors, five trailers and one marine
container.
(B) Expenses
Total expenses of $283,467 for the six months ended June 30, 1995, decreased
from $357,862 for the same period in 1994. The decrease in 1995 expenses was
attributable primarily to decreases in depreciation, repairs and maintenance,
and management fees, offset by increases in all general and administrative
expenses.
<PAGE>
(1) Direct operating expenses (defined as repairs and maintenance) decreased to
$26,857 in the six months ended June 30, 1995, from $53,273 in the same period
in 1994. This decrease was attributable to a decrease in repairs and maintenance
due to the sale of six trailers in 1994 and 14 trailers in 1995, and decreases
in shop repairs for the Partnership's railcars.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, all general and administrative expenses, and bad debt expense) decreased
to $256,610 in the six months ended June 30, 1995, from $304,589 in the same
period in 1994. This change resulted primarily from:
(a) a decrease in depreciation expense of $63,412 from 1994 levels
reflecting assets sales or dispositions during 1995 and 1994;
(b) a decrease in management fees to affiliate of $4,105 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) an increase of $19,538 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.
(C) Net Income
The Partnership's net income of $61,103 in the six months ended June 30, 1995,
decreased from a net income of $114,958 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 six months
ended June 30, 1995, is not necessarily indicative of future periods. In the six
months ended June 30, 1995, the Partnership distributed $365,731 to the Limited
Partners, or approximately $20.95 per unit.
TEP IXC
(A) Revenues
Total revenues for the six months ended June 30, 1995, increased to $610,479
from $472,408 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.
(1) Lease revenue decreased to $362,059 in the six months ended June 30, 1995,
from $468,795 in the same period in 1994. The following table lists lease
revenues earned by equipment type:
For the six months ended
June 30,
1995 1994
Trailers and tractors $ 296,829 $ 371,211
Aircraft 34,200 43,726
Rail equipment 26,110 49,058
Marine containers 4,920 4,800
$ 362,059 $ 468,795
The decline was due primarily to the following:
(a) Trailer revenue decreased $74,382 in 1995 as compared to 1994 levels
due to lower utilization in the short-term rental facilities, primarily
refrigerated trailers, in 1995 compared to 1994 levels, and the sale of three
trailers in 1995;
(b) Aircraft revenue decreased $9,526 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;
<PAGE>
(c) Rail revenue decreased $22,948 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 six months ended June 30, 1995, the Partnership realized a gain of
$234,444 on the sale of three trailers and five twin stack railcars, compared to
the same period in 1994, where the Partnership realized a gain of $486 on the
sale or disposal of two trailers and one marine container.
(3) Interest and other income increased $10,849 due to an increase in cash
available for short-term investment.
(B) Expenses
Total expenses of $361,582 for the six months ended June 30, 1995, decreased
from $397,169 for the same period in 1994. The decrease in 1995 expenses was
attributable to decreases in all general and administrative expenses,
depreciation and management fees, offset by an increase in repairs and
maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$87,283 in the six months ended June 30, 1995, from $58,140 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 $274,299 in the
six months ended June 30, 1995, from $339,029 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in general and administrative expenses of $40,402 due to
lower administrative costs associated with the Partnership;
(b) a decrease in depreciation expense of $19,152 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 $248,897 in the six months ended June
30, 1995, from $75,239 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 six months ended June 30, 1995, is not
necessarily indicative of future periods. In the six months ended June 30, 1995,
the Partnership distributed $702,328 to the Limited Partners, or approximately
$41.52 per unit.
TEP IXD
(A) Revenues
Total revenues of $223,051 for the six months ended June 30, 1995 decreased from
$281,702 for the same period in 1994 due primarily to lower lease revenues,
offset by a larger gain on sale of equipment in 1995 compared to 1994.
(1) Lease revenues decreased to $155,271 in the six months ended June 30, 1995,
from $268,273 in the same period in 1994. The following table lists lease
revenue earned by equipment type:
For the six months ended
June 30,
1995 1994
Trailers $ 114,451 $ 232,435
Marine containers 40,820 35,838
---------- ----------
$ 155,271 $ 268,273
The decrease was due to the following:
(a) Trailer revenue decreased $117,984 due primarily to the sale of 30
trailers during the first and second quarters of 1995, and lower utilization in
short-term rental facilities operated by an affiliate of the General Partner;
(b) Marine container revenue increased $4,982 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 27 marine containers in 1995 and 24 in 1994.
(2) For the six months ended June 30, 1995, the Partnership realized a gain of
$52,339 on the sale or disposal of 30 trailers and 27 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 $6,293 due to an increase in cash
available for short-term investment.
(B) Expenses
Total expenses of $212,790 for the six months ended June 30, 1995, increased
from $199,315 for the same period in 1994. The increase in 1995 expenses was
attributable primarily to increases in bad debt expense, repair and maintenance
and all general and administrative expenses, partially offset by decreases in
depreciation and management fees.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$32,419 in the six months ended June 30, 1995, from $13,903 in the same period
in 1994. This change resulted primarily from the refurbishment of 30 trailers
prior to being sold.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, bad debt expense, and all general and administrative expenses) decreased
to $180,371 in the six months ended June 30, 1995, from $185,412 in the same
period in 1994. This change resulted primarily from:
(a) a decrease in depreciation expense of $25,468 from 1994 levels,
reflecting asset sales or dispositions during 1995;
(b) a decrease in management fees to affiliate of $8,543 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;
(c) an increase of $24,355 in bad debt expense due to the General Partner's
evaluation of the collectibility of trade receivables from trailer rental yard
lessees;
(d) an increase of $4,615 in general and administrative expenses from 1994
levels due to slightly higher administrative costs associated with the
Partnership.
(C) Net Income
The Partnership's net income of $10,261 in the six months ended June 30, 1995,
decreased from a net income of $82,387 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 six months
ended June 30, 1995, is not necessarily indicative of future periods. In the six
months ended June 30, 1995, the Partnership distributed $558,727 to the Limited
Partners, or approximately $58.63 per unit.
Trends
Inflation and changing prices did not materially impact the Partnerships'
revenues or expenses during the reported 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>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PLM TRANSPORTATION EQUIPMENT
PARTNERS IXC 1986 INCOME FUND
By: PLM Financial Services, Inc.
General Partner
Date: August 10, 1995 By: /s/ David J. Davis
-------------------
David J. Davis
Vice President and
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 295,045
<SECURITIES> 0
<RECEIVABLES> 82,788
<ALLOWANCES> 30,368
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 4,983,352
<DEPRECIATION> 4,037,037
<TOTAL-ASSETS> 1,359,376
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 1,332,217
<TOTAL-LIABILITY-AND-EQUITY> 1,359,376
<SALES> 0
<TOTAL-REVENUES> 610,479
<CGS> 0
<TOTAL-COSTS> 361,582
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 248,897
<INCOME-TAX> 0
<INCOME-CONTINUING> 248,897
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 248,897
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
