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 September 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 33-657
-----------------------
PLM Transportation Equipment Partners IXD 1986
Income Fund
(Exact name of registrant as specified in its charter)
California 94-2992021
(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>
September 30, December 31,
1995 1994
----------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 4,253,932 $ 7,462,921
Less accumulated depreciation (3,523,500) (5,944,395)
----------------------------------------
Net equipment 730,432 1,518,526
Cash and cash equivalents 218,743 298,718
Accounts receivable, net of allowance for doubtful
accounts of $121,907 in 1995 and $121,925 in 1994 38,926 34,620
Net investment in sales-type lease 1,047,095 --
Due from affiliates 2,941 --
Prepaid insurance 445 3,623
----------------------------------------
Total assets $ 2,038,582 $ 1,855,487
========================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ -- $ 2,732
Accounts payable 26,043 4,112
Prepaid deposits 22,677 23,574
----------------------------------------
Total liabilities 48,720 30,418
Partners' capital (deficit):
Limited Partners (24,285 units) 2,076,977 1,913,772
General Partner (87,115) (88,703)
----------------------------------------
Total partners' capital 1,989,862 1,825,069
----------------------------------------
Total liabilities and partners' capital $ 2,038,582 $ 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 Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 151,828 $ 235,924 $ 392,052 $ 504,233
Interest and other income 16,264 2,495 23,359 5,931
Gain (loss) on disposition of equipment 9,857 45,179 555,197 40,496
----------------------------------------------------------------
Total revenues 177,949 283,598 970,608 550,660
Expenses:
Depreciation 55,518 109,508 257,018 331,171
Management fees to affiliate 15,178 15,178 45,534 45,788
Repairs and maintenance 22,951 17,906 128,770 84,690
Bad debt expense -- 78,204 -- 103,615
General and administrative
expenses to affiliates 28,800 30,687 89,524 74,393
Other general and administrative expenses 22,753 11,924 61,565 57,460
----------------------------------------------------------------
Total expenses 145,200 263,407 582,411 697,117
----------------------------------------------------------------
Net income (loss) $ 32,749 $ 20,191 $ 388,197 $ (146,457)
================================================================
Partners' share of net income (loss)
Limited Partners - 99% $ 32,422 $ 19,989 $ 384,315 $ (144,992)
General Partner - 1% 327 202 3,882 (1,465)
--------------------------------------------------------------
Total $ 32,749 $ 20,191 $ 388,197 $ (146,457)
==============================================================
Net income (loss) per Limited
Partnership Unit - 24,285 units $ 1.34 $ 0.82 $ 15.83 $ (5.97)
==============================================================
Cash distributions $ 74,464 $ 60,262 $ 223,404 $ 301,305
==============================================================
Cash distributions per Limited
Partnership Unit $ 3.04 $ 2.46 $ 9.11 $ 12.28
==============================================================
</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 September 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 384,315 3,882 388,197
Cash distributions (221,110) (2,294) (223,404)
-----------------------------------------------------
Partners' capital (deficit)
at September 30, 1995 $ 2,076,977 $ (87,115) $ 1,989,862
=====================================================
</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 nine months
ended September 30,
1995 1994
---------------------------------
<S> <C> <C>
Operating activities:
Net income (loss) $ 388,197 $ (146,457)
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
(Gain) loss on disposition of equipment (555,197) (40,496)
Depreciation 257,018 331,171
Changes in operating assets and liabilities
Accounts receivable, net (4,306) 50,883
Due to/from affiliates (5,673) 9,079
Prepaid insurance 3,178 2,752
Accounts payable (28,068) (63,569)
Prepaid deposits (897) 2,265
---------------------------------
Net cash provided by operating activities 54,252 145,628
---------------------------------
Investing activities:
Proceeds from disposition of equipment 90,053 198,391
Payments for purchase of capital improvements (876) --
---------------------------------
Net cash provided by investing activities 89,177 198,391
---------------------------------
Cash flows used in financing activities:
Cash distributions paid to partners (223,404) (301,305)
---------------------------------
Cash and cash equivalents:
Net decrease in cash and cash equivalents (79,975) 42,714
Cash and cash equivalents at beginning of period 298,718 335,234
---------------------------------
Cash and cash equivalents at end of period $ 218,743 $ 377,948
=================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 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 September 30, 1995, the statements of
operations for the three and nine months ended September 30, 1995 and 1994, the
statements of changes in partners' capital for the period from December 31, 1993
to September 30, 1995, and the statements of cash flows for the nine months
ended September 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:
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
-------------------------------------
<S> <C> <C>
Rail equipment $ 783,870 $ 783,870
Marine containers 1,432,402 1,526,759
Commuter aircraft -- 3,076,382
Trailers 2,037,660 2,075,910
-------------------------------------
4,253,932 7,462,921
Less accumulated depreciation (3,523,500) (5,944,395)
-------------------------------------
Net equipment $ 730,432 $ 1,518,526
=====================================
</TABLE>
All equipment was either on lease or operating in PLM affiliated short-term
rental facilities as of September 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 nine months ended September 30, 1995, the Partnership sold or
disposed of one trailer and seven marine containers. 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 September 1995, with an additional balloon payment of $919,012 due
at the end of the lease term. The total net book value for these disposed or
sold equipment was $532,835 with a total sales price of $1,137,148. During the
nine months ended September 30, 1994, the Partnership sold or disposed of nine
trailers, one yardster, and two marine containers with an aggregate book value
of $157,895 for proceeds of $198,391.
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
<TABLE>
<CAPTION>
ASSETS
September 30, December 31,
1995 1994
--------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 4,479,033 $ 5,309,856
Less accumulated depreciation (3,684,805) (4,180,140)
--------------------------------------
Net equipment 794,228 1,129,716
Cash and cash equivalents 368,820 492,060
Accounts receivable, net of allowance for doubtful
accounts of $41,297 in 1995 and $17,600 in 1994 30,738 66,451
Prepaid insurance 310 2,960
--------------------------------------
Total assets $ 1,194,096 $ 1,691,187
======================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 3,638 $ 6,063
Accounts payable and other liabilities 9,813 11,411
Prepaid deposits 1,005 16,384
--------------------------------------
Total liabilities 14,456 33,858
Partners' capital (deficit):
Limited Partners (17,460 units) 1,244,710 1,717,622
General Partner (65,070) (60,293)
--------------- ---------------
Total partners' capital 1,179,640 1,657,329
--------------------------------------
Total liabilities and partners' capital $ 1,194,096 $ 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 Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 132,659 $ 233,639 $ 393,303 $ 626,667
Interest and other income 5,516 4,828 16,888 10,798
Gain (loss) on disposition of equipment 27,862 1,959 100,416 75,781
----------------------------------------------------------------
Total revenues 166,037 240,426 510,607 713,246
Expenses:
Depreciation 61,641 89,062 199,172 290,005
Management fees to affiliate 10,913 18,703 32,738 44,633
Repairs and maintenance 24,313 26,958 51,170 80,231
General and administrative
expenses to affiliates 19,573 24,748 72,429 62,969
Other general and administrative expenses 15,965 20,224 60,363 59,719
---------------------------------------------------------------
--
Total expenses 132,405 179,695 415,872 537,557
----------------------------------------------------------------
Net income $ 33,632 $ 60,731 $ 94,735 $ 175,689
================================================================
Partners' share of net income
Limited Partners - 99% $ 33,296 $ 60,124 $ 93,788 $ 173,932
General Partner - 1% 336 607 947 1,757
----------------------------------------------------------------
Total $ 33,632 $ 60,731 $ 94,735 $ 175,689
================================================================
Net income per Limited
Partnership Unit - 17,460 units $ 1.91 $ 3.44 $ 5.37 $ 9.96
================================================================
Cash distributions $ 202,999 $ 117,222 $ 572,424 $ 548,966
================================================================
Cash distributions per Limited
Partnership Unit $ 11.51 $ 6.65 $ 32.46 $ 31.13
================================================================
</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 September 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 93,788 947 94,735
Cash distributions (566,700) (5,724) (572,424)
-----------------------------------------------------
Partners' capital (deficit)
at September 30, 1995 $ 1,244,710 $ (65,070) $ 1,179,640
=====================================================
</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 nine months ended
September 30,
1995 1994
---------------------------------
<S> <C> <C>
Operating activities:
Net income $ 94,735 $ 175,689
Adjustments to reconcile net income
to net cash provided by operating activities:
Gain on disposition of equipment (100,416) (75,781)
Depreciation 199,172 290,005
Changes in operating assets and liabilities:
Accounts receivable, net 35,713 9,632
Prepaid insurance 2,650 2,241
Due to affiliates (2,425) 10,589
Accounts payable (1,598) 7,591
Prepaid deposits (15,379) 535
---------------------------------
Net cash provided by operating activities 212,452 420,501
---------------------------------
Investing activities:
Proceeds from disposition of equipment 241,627 306,316
Payments for purchase of capital improvements (4,895) --
---------------------------------
Net cash provided by investing activities 236,732 306,316
Cash flows used in financing activities:
Cash distributions paid to partners (572,424) (548,966)
---------------------------------
Cash and cash equivalents:
Net decrease in cash and cash equivalents (123,240) 177,854
Cash and cash equivalents at beginning of period 492,060 455,659
---------------------------------
Cash and cash equivalents at end of period $ 368,820 $ 633,513
=================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 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 September 30, 1995, the statements of
income for the three and nine months ended September 30, 1995 and 1994, the
statements of changes in partners' capital for the period from December 31, 1993
to September 30, 1995, and the statements of cash flows for the nine months
ended September 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 September 30, 1995, and December 31, 1994, are as follows:
September 30, December 31,
1995 1994
---------------------------------
Rail equipment $ 867,300 $ 867,300
Marine containers 413,633 483,606
Aircraft 1,492,368 1,492,368
Trailers and tractors 1,705,732 2,466,582
---------------------------------
4,479,033 5,309,856
Less accumulated depreciation (3,684,805) (4,180,140)
---------------------------------
Net equipment $ 794,228 $ 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 September 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 $79,608 and $152,349 at September 30, 1995
and December 31, 1994, respectively.
During the nine months ended September 30, 1995, the Partnership sold or
disposed of 20 trailers and four marine containers with an aggregate net book
value of $141,211 for proceeds of $241,627. During the nine months ended
September 30, 1994, the Partnership sold or disposed of eight tractors, five
trailers, one Letro Porter, and three marine container with an aggregate net
book value of $230,538 for proceeds of $306,319.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
September 30, December 31,
1995 1994
----------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 4,920,653 $ 5,082,353
Less accumulated depreciation (4,052,266) (3,980,922)
----------------------------------------
868,387 1,101,431
Equipment held for sale -- 273,785
----------------------------------------
Net equipment 868,387 1,375,216
Cash and cash equivalents 281,267 312,230
Restricted cash 6,600 6,600
Accounts receivable, net of allowance for doubtful
accounts of $31,571 in 1995 and $31,642 in 1994 60,933 106,868
Due from affiliates 4,727 20,035
Prepaid insurance and other assets 21,925 28,583
----------------------------------------
Total assets $ 1,243,839 $ 1,849,532
========================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable $ 10,276 $ 8,178
Prepaid deposits and reserves 18,604 48,612
----------------------------------------
Total liabilities 28,880 56,790
Partners' capital (deficit):
Limited Partners (16,914 units) 1,277,271 1,849,276
General Partner (62,312) (56,534)
--------------- ---------------
Total partners' capital 1,214,959 1,792,742
----------------------------------------
Total liabilities and partners' capital $ 1,243,839 $ 1,849,532
========================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 141,042 $ 242,314 $ 503,101 $ 711,109
Interest and other income 4,070 2,905 18,046 6,032
Gain on disposition of equipment 424 -- 234,869 486
----------------------------------------------------------------
Total revenues 145,536 245,219 756,016 717,627
Expenses:
Depreciation 67,502 80,364 211,449 243,463
Management fees to affiliate 10,568 15,965 34,785 45,358
Repairs and maintenance 32,263 51,132 119,546 109,272
General and administrative
expenses to affiliates 34,618 47,413 126,011 139,270
Other general and administrative expenses 11,401 5,466 26,773 40,979
Bad debt expense 7,670 9,729 7,041 28,896
----------------------------------------------------------------
Total expenses 164,022 210,069 525,605 607,238
----------------------------------------------------------------
Net income (loss) $ (18,486) $ 35,150 $ 230,411 $ 110,389
================================================================
Partners' share of net income (loss):
Limited Partners - 99% $ (18,301) $ 34,798 $ 228,107 $ 109,285
General Partner - 1% (185) 352 2,304 1,104
----------------------------------------------------------------
Total $ (18,486) $ 35,150 $ 230,411 $ 110,389
================================================================
Net income (loss) per Limited
Partnership Unit (16,914 units) $ (1.08) $ 2.06 $ 13.48 $ 6.46
================================================================
Cash distributions $ 98,772 $ 94,521 $ 808,194 $ 283,562
================================================================
Cash distributions per Limited
Partnership Unit $ 5.78 $ 5.53 $ 47.30 $ 16.60
================================================================
</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 September 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 228,107 2,304 230,411
Cash distributions (800,112) (8,082) (808,194)
-------------------------------------------------------
Partners' capital (deficit)
at September 30, 1995 $ 1,277,271 $ (62,312) $ 1,214,959
=======================================================
</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 nine months ended
September 30,
1995 1994
---------------------------------
<S> <C> <C>
Operating activities:
Net income $ 230,411 $ 110,389
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain on disposition of equipment (234,869) (486)
Depreciation 211,449 243,463
Change in operating assets and liabilities
Restricted cash -- (19,151)
Accounts receivable, net 45,935 30,574
Due from affiliates 15,308 8,904
Prepaid deposits and reserves (30,008) 26,439
Prepaid expenses and other assets 3,439 2,240
Accounts payable and other liabilities 2,098 (394)
---------------------------------
Net cash provided by operating activities 243,763 401,978
---------------------------------
Investing activities:
Proceeds from disposition of equipment 532,486 31,000
Payments for purchase of capital improvements (2,237) (3,925)
Payments received on finance leases 3,219 3,339
---------------------------------
Net cash provided by investing activities 533,468 30,414
---------------------------------
Cash flows used in financing activities:
Cash distributions paid to partners (808,194) (283,562)
---------------------------------
Cash and cash equivalents:
Net (decrease) increase in cash and cash equivalents (30,963) 148,830
Cash and cash equivalents at beginning of period 312,230 131,540
---------------------------------
Cash and cash equivalents at end of period $ 281,267 $ 280,370
=================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 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 September 30, 1995, the statements of
operations for the three and nine months ended September 30, 1995 and 1994, the
statements of changes in partners' capital for the period from December 31, 1993
to September 30, 1995, and the statements of cash flows for the nine months
ended September 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:
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
-------------------------------------
<S> <C> <C>
Rail equipment $ 178,501 $ 178,501
Marine containers 137,548 160,473
Aircraft 913,188 913,188
Trailers and tractors 3,691,416 3,830,191
-------------------------------------
4,920,653 5,082,353
Less accumulated depreciation (4,052,266) (3,980,922)
-------------------------------------
868,387 1,101,431
Equipment held for sale -- 273,785
-------------------------------------
Net equipment $ 868,387 $ 1,375,216
=====================================
</TABLE>
All of the equipment was either on lease or operating in PLM-affiliated
short-term rental facilities as of September 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 nine months ended September 30, 1995, the Partnership sold or
disposed of four trailers, one marine container and five twin stack railcars of
which three railcars were off-lease at the end of 1994, with an aggregate net
book value of $297,618 for proceeds of $532,487. During the nine months ended
September 30, 1994, the Partnership sold or disposed of two trailers and three
marine containers 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
<TABLE>
<CAPTION>
ASSETS
September 30, December 31,
1995 1994
----------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 1,730,204 $ 3,041,954
Less accumulated depreciation (1,392,773) (2,332,144)
----------------------------------------
Net equipment 337,431 709,810
Cash and cash equivalents 298,746 524,782
Accounts receivable, net of allowance for doubtful
accounts of $45,990 in 1995 and $6,481 in 1994 40,339 116,088
Due from affiliates 7,639 1,744
Prepaid insurance and other assets 22,784 37,668
----------------------------------------
Total assets $ 706,939 $ 1,390,092
========================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and other liabilities $ 5,496 $ 5,060
Partners' capital (deficit):
Limited Partners (9,529 units) 736,256 1,413,009
General Partner (34,813) (27,977)
----------------------------------------
Total partners' capital 701,443 1,385,032
----------------------------------------
Total liabilities and partners' capital $ 706,939 $ 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 Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Lease revenue $ 59,601 $ 137,667 $ 214,872 $ 405,940
Interest and other income 4,946 6,030 20,387 15,178
Gain on disposition of equipment 26,015 8,185 78,354 12,466
----------------------------------------------------------------
Total revenues 90,562 151,882 313,613 433,584
Expenses:
Depreciation 24,872 43,023 86,332 129,952
Management fees to affiliate 5,955 8,921 18,294 29,803
Repairs and maintenance 9,495 20,719 41,914 34,622
General and administrative
expenses to affiliates 14,495 20,942 55,847 61,983
Other general and administrative expenses 10,593 5,090 39,509 29,698
Bad debt expense 4,770 3,488 41,074 15,440
----------------------------------------------------------------
Total expenses 70,180 102,183 282,970 301,498
----------------------------------------------------------------
Net income $ 20,382 $ 49,699 $ 30,643 $ 132,086
================================================================
Partners' share of net income:
Limited Partners - 99% $ 20,178 $ 49,202 $ 30,337 $ 130,765
General Partner - 1% 204 497 306 1,321
---------------------------------------------------------------
Total $ 20,382 $ 49,699 $ 30,643 $ 132,086
================================================================
Net income per Limited
Partnership Unit (9,529 units) $ 2.12 $ 5.16 $ 3.18 $ 13.72
================================================================
Cash distributions $ 149,861 $ 83,618 $ 714,232 $ 315,036
================================================================
Cash distributions per Limited
Partnership Unit $ 15.57 $ 8.69 $ 74.20 $ 32.73
================================================================
</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 September 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 30,337 306 30,643
Cash distributions (707,090) (7,142) (714,232)
-------------------------------------------------------
Partners' capital (deficit)
at September 30, 1995 $ 736,256 $ (34,813) $ 701,443
=======================================================
</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 nine months ended
September 30,
1995 1994
---------------------------------
<S> <C> <C>
Operating activities:
Net income $ 30,643 $ 132,086
Adjustments to reconcile net income to net
cash provided by operating activities:
Gain on disposition of equipment (78,354) (12,466)
Depreciation 86,332 129,952
Changes in operating assets and liabilities
Accounts receivable, net 75,749 (1,858)
Due from affiliate (5,895) 4,284
Prepaid insurance and other assets 2,002 349
Accounts payable and other liabilities 436 2,902
---------------------------------
Net cash provided by operating activities 110,913 255,249
---------------------------------
Investing activities:
Proceeds from disposition of equipment 364,401 30,103
Payments received on finance leases 12,882 13,354
---------------------------------
Net cash provided by investing activities 377,283 43,457
---------------------------------
Cash flows used in financing activities:
Cash distributions paid to partners (714,232) (315,036)
---------------------------------
Cash and cash equivalents:
Net decrease in cash and cash equivalents (226,036) (16,330)
Cash and cash equivalents at beginning of period 524,782 528,066
---------------------------------
Cash and cash equivalents at end of period $ 298,746 $ 511,736
=================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
September 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 September 30, 1995, and the statements of
income for the three and nine months ended September 30, 1995 and 1994, the
statements of changes in partners' capital for the period from December 31, 1993
to September 30, 1995, and the statements of cash flows for the nine months
ended September 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:
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
-------------------------------------
<S> <C> <C>
Marine containers $ 344,431 $ 417,961
Trailers 1,385,773 2,623,993
-------------------------------------
1,730,204 3,041,954
Less accumulated depreciation (1,392,773) (2,332,144)
-------------------------------------
Net equipment $ 337,431 $ 709,810
=====================================
</TABLE>
All equipment owned by the Partnership was either on lease or operating in
PLM-affiliated short-term rental facilities as of September 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 nine months ended September 30, 1995, the Partnership sold or
disposed of 30 trailers and 38 marine containers with an aggregate net book
value of $286,047 for proceeds of $364,401. During the nine months ended
September 30, 1994, the Partnership sold or disposed of 24 marine containers and
one trailer with an aggregate net book value of $17,637 for proceeds of $30,103.
<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 nine months ended
September 30, 1995, one trailer and seven marine containers owned by TEP IXA .
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. The total sales price for these disposed or sold equipment was $1,137,148;
20 trailers and four marine containers owned by TEP IXB were sold for a total of
$241,627; five twin stack railcars, four trailers and one marine container owned
by TEP IXC were sold for $532,487; and 30 trailers and 38 marine container owned
by TEP IXD were sold or disposed of for $364,401. In 1996, the Partnership will
enter into its 10th year of operation and the liquidation phase will begin.
Therefore, equipment will be marketed for sale as current lease terms expire.
Comparison of the Partnership's Operating Results for the Three Months Ended
September 30, 1995 and 1994
TEP IXA
(A) Revenues
Total revenues of $177,949 for the quarter ended September 30, 1995, decreased
from $283,598 for the same period in 1994, due primarily to lower lease revenues
in the third quarter of 1995 compared to the same period in 1994.
(1) Lease revenue decreased to $151,828 in the third quarter 1995, from $235,924
in the same period of 1994. The following table lists lease revenues earned by
equipment type:
For the three months ended
September 30,
1995 1994
-------------------------------
Trailers $ 86,130 $ 170,377
Rail equipment 25,950 25,950
Marine containers 39,748 39,597
-------------------------------
$ 151,828 $ 235,924
===============================
Lease revenue decreased $84,096 due primarily to the decline in utilization in
the short-term rental facilities in 1995 compared to 1994 levels, and the sale
of 12 trailers, one yardster and one forklift in 1994, and one trailer in 1995.
(2) For the quarter ended September 30, 1995, the Partnership realized a gain of
$9,857 on the disposition of two marine containers, compared to the same period
in 1994, where the Partnership realized a gain of $45,179 on the sale or
disposition of one yardster and two marine containers.
(B) Expenses
Total expenses of $145,200 for the quarter ended September 30, 1995, decreased
from $263,407 for the same period in 1994. The decrease in 1995 expenses was
attributable to decreases in all general and administrative expenses,
depreciation expense, and bad debt expense, offset partially by an increase in
repairs and maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$22,951 in 1995, from $17,906 in 1994, due primarily to repairs done on a
railcar to comply with the rules of the Association of American Railroads.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, and all general and administrative expenses) decreased to $122,249 in the
third quarter 1995, from $245,501 in the same period in 1994. This change
resulted primarily from:
(a) a decrease of $78,204 in bad debt expense due to the General Partner's
evaluation that previously establish reserves are no longer required based on
the current open receivable balances and the current customer mix;
(b) a decrease in depreciation expense of $53,990 from 1994 levels
reflecting asset sales or dispositions during 1995 and 1994;
(c) an increase of $8,942 in general and administrative expenses from 1994
levels due to higher administrative costs associated with the Partnership.
(C) Net Income
The Partnership's net income increased to $32,749 in the third quarter 1995,
from $20,191 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 third quarter 1995, is not necessarily
indicative of future periods. In the third quarter 1995, the Partnership
distributed $73,719 to the Limited Partners, or approximately $3.04 per unit.
TEP IXB
(A) Revenues
Total revenues of $166,037 for the quarter ended September 30, 1995, decreased
from $240,426 for the same period in 1994 due primarily to lower lease revenues
offset by a larger gain from the sale of equipment in the third quarter of 1995,
compared to the same period in 1994.
(1) Lease revenue decreased to $132,659 in the third quarter 1995, from $233,639
in the same period in 1994. The following table lists lease revenues earned by
equipment type:
For the three months ended
September 30,
1995 1994
-------------------------------
Aircraft $ 48,593 $ 48,593
Trailers and tractors 50,853 125,361
Rail equipment 21,870 49,170
Marine containers 11,343 10,515
-------------------------------
$ 132,659 $ 233,639
===============================
<PAGE>
The decline was due primarily to the following:
(a) Trailer and tractor revenue decreased $74,508 due to the sale of 13
tractors and nine trailers in 1994 and 20 trailers in 1995, and a decline in
utilization in the short-term rental facilities in 1995 compared to 1994 levels;
(b) Railcar revenue decreased $27,300 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 September 30, 1995, the Partnership realized a gain of
$27,862 on the sale or disposition of six trailers and one marine container,
compared to the same period in 1994, where the Partnership realized a gain of
$1,959 on the sale or disposal of two marine containers.
(B) Expenses
Total expenses of $132,405 for the quarter ended September 30, 1995, decreased
from $179,695 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
$24,313 in the third quarter 1995, from $26,958 in the same period in 1994. This
decrease was attributable to the sale of nine trailers in 1994 and 20 trailers
in 1995.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, all general and administrative expenses, and bad debt expense) decreased
to $108,092 in the third quarter 1995, from $152,737 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in depreciation expense of $27,421 from 1994 levels
reflecting assets sales or dispositions during 1995 and 1994;
(b) a decrease of $9,434 in general and administrative expenses from 1994
levels due to lower administrative costs associated with the Partnership;
(c) a decrease in management fees to affiliate of $7,790 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
The Partnership's net income of $33,632 in the third quarter 1995, increased
from $60,731 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 third quarter 1995, is not necessarily
indicative of future periods. In the third quarter 1995, the Partnership
distributed $200,969 to the Limited Partners, or approximately $11.51 per unit.
TEP IXC
(A) Revenues
Total revenues for the quarter ended September 30, 1995, decreased to $145,536
from $245,219 for the same period in 1994, due primarily to lower lease
revenues.
(1) Lease revenue decreased to $141,042 in the third quarter 1995, from $242,314
in the same period in 1994. The following table lists lease revenues earned by
equipment type:
<PAGE>
For the three months ended
September 30,
1995 1994
-------------------------------
Trailers and tractors $ 112,465 $ 190,547
Aircraft 17,100 21,863
Rail equipment 7,800 27,875
Marine containers 3,677 2,029
-------------------------------
$ 141,042 $ 242,314
===============================
The decline was due primarily to the following:
(a) Trailer revenue decreased $78,082 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 four trailers in 1995;
(b) Rail revenue decreased $20,075 in 1995, as compared to 1994 levels due
to the sale of five twin stack railcars in the first quarter of 1995;
(c) 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;
(d) Marine container revenue increased $1,648 primarily due to an increase
in utilization for dry marine containers from 1994 levels.
(2) For the quarter ended September 30, 1995, the Partnership realized a gain of
$424 on the sale or disposal of one trailer, and one marine container compared
to the same period in 1994, where the Partnership had no asset sales.
(B) Expenses
Total expenses of $164,022 for the quarter ended September 30, 1995, decreased
from $210,069 for the same period in 1994. The decrease in 1995 expenses was
attributable to decreases in repairs and maintenance, depreciation, and all
general and administrative expenses.
(1) Direct operating expenses (defined as repairs and maintenance) decreased to
$32,263 in the third quarter 1995, from $51,132 in the same period in 1994. This
decrease 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 $131,759 in the
third quarter 1995, from $158,937 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in depreciation expense of $12,862 from 1994 levels
reflecting asset sales during 1995;
(b) a decrease in general and administrative expenses of $6,860 due to
lower administrative costs associated with the Partnership;
(c) a decrease in management fees to affiliate of $5,397 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;
(d) a decrease of $2,059 in bad debt expense due to the General Partner's
evaluation that previously establish reserves are no longer required based on
the current open receivable balances and the current customer mix.
(C) Net Income (Loss)
The Partnership incurred a net loss of $18,486 in the third quarter 1995,
compared to a net income of $35,150 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 third
quarter 1995, is not necessarily indicative of future periods. In the third
quarter 1995, the Partnership distributed $97,784 to the Limited Partners, or
approximately $5.78 per unit.
TEP IXD
(A) Revenues
Total revenues of $90,562 for the quarter ended September 30, 1995 decreased
from $151,882 for the same period in 1994, due primarily to lower lease
revenues, offset by a larger gain on sale of equipment for the third quarter of
1995, compared to the same period in 1994.
(1) Lease revenues decreased to $59,601 in the third quarter 1995, from $137,667
in the same period in 1994. The following table lists lease revenue earned by
equipment type:
For the three months ended
September 30,
1995 1994
-------------------------------
Trailers $ 34,871 $ 115,959
Marine containers 24,730 21,708
-------------------------------
$ 59,601 $ 137,667
===============================
The decline was due primarily to the following:
(a) Trailer revenue decreased $81,088 due primarily to the sale of 30
trailers during the first six months of 1995, and lower utilization in
short-term rental facilities operated by an affiliate of the General Partner;
(b) Marine container revenue increased $3,022 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 38 marine containers in 1995 and 29 in 1994.
(2) For the quarter ended September 30, 1995, the Partnership realized a gain of
$26,015 on the disposal of 11 marine containers, where the Partnership realized
a gain of $8,185 on the sale or disposal of one trailer and 20 marine
containers.
(B) Expenses
Total expenses of $70,180 for the quarter ended September 30, 1995, decreased
from $102,183 for the same period in 1994. The decrease in 1995 expenses was
attributable primarily to decreases in depreciation, management fees and repair
and maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) decreased to
$9,495 in the third quarter 1995, from $20,719 in the same period in 1994. This
change resulted primarily from the refurbishment of nine 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 $60,685 in the third quarter 1995, from $81,464 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in depreciation expense of $18,151 from 1994 levels,
reflecting asset sales or dispositions during 1995;
(b) a decrease in management fees to affiliate of $2,966 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 $1,282 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 $20,382 in the third quarter 1995, decreased
from $49,699 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 third quarter 1995, is not necessarily
indicative of future periods. In the third quarter 1995, the Partnership
distributed $148,362 to the Limited Partners, or approximately $15.57 per unit.
Comparison of the Partnership's Operating Results for the Nine Months Ended
September 30, 1995 and 1994
TEP IXA
(A) Revenues
Total revenues of $970,608 for the nine months ended September 30, 1995,
increased from $550,660 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, offset by lower lease revenues in 1995 compared to 1994.
(1) Lease revenue decreased to $392,052 in the nine months ended September 30,
1995, from $504,233 in the same period of 1994. The following table lists lease
revenues earned by equipment type:
For the nine months ended
September 30,
1995 1994
-------------------------------
Trailers $ 228,739 $ 337,152
Rail equipment 77,850 70,379
Marine containers 85,463 96,702
-------------------------------
$ 392,052 $ 504,233
===============================
The decline was due primarily to the following:
(a) Trailer revenue decreased $108,413 due to the decline in utilization in
the short-term rental facilities in 1995 compared to 1994 levels, and the sale
of 12 trailers, one yardster and one forklift in 1994 and one trailer in 1995;
(b) Marine container revenue decreased $11,239 due to the disposal of nine
marine containers in 1994 and seven 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 nine months ended September 30, 1995, the Partnership realized a
gain of $555,197 on the sale or disposition of one trailer, seven marine
containers, and one commuter aircraft, compared to the same period in 1994,
where the Partnership realized a gain of $40,496 on the sale or disposal of nine
trailers, one yardster, and two marine containers. 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 $582,411 for the nine months ended September 30, 1995,
decreased from $697,117 for the same period in 1994. The decrease in 1995
expenses was attributable to decreases in bad debt expense, depreciation expense
and all general and administrative expenses, offset by increases in repairs and
maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$128,770 in 1995, from $84,690 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 $453,641 in the
nine months ended September 30, 1995, from $612,427 in the same period in 1994.
This change resulted primarily from:
(a) a decrease of $103,615 in bad debt expense due to the General Partner's
evaluation that previously establish reserves are no longer required based on
the current open receivable balances and the current customer mix;
(b) a decrease in depreciation expense of $74,153 from 1994 levels
reflecting assets sales or dispositions during 1995 and 1994;
(c) an increase of $19,236 in general and administrative expenses from 1994
levels due to higher administrative costs associated with the Partnership.
(C) Net Income (Loss)
The Partnership's net income increased to $388,197 in the nine months ended
September 30, 1995, from a net loss of $146,457 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 nine months
ended September 30, 1995, is not necessarily indicative of future periods. In
the nine months ended September 30, 1995, the Partnership distributed $221,170
to the Limited Partners, or approximately $9.11 per unit.
TEP IXB
(A) Revenues
Total revenues of $510,607 for the nine months ended September 30, 1995,
decreased from $713,246 for the same period in 1994 due primarily to lower lease
revenue.
(1) Lease revenue decreased to $393,303 in the nine months ended September 30,
1995, from $626,667 in the same period in 1994. The following table lists lease
revenues earned by equipment type:
For the nine months ended
September 30,
1995 1994
-------------------------------
Trailers and tractors $ 161,680 $ 303,325
Aircraft 145,778 145,778
Rail equipment 59,768 148,371
Marine containers 26,077 29,193
-------------------------------
$ 393,303 $ 626,667
===============================
<PAGE>
The decline was due primarily to the following:
(a) Trailer and tractor revenue decreased $141,645 due to the sale of 13
tractors and nine trailers in 1994 and 20 trailers in 1995, and a decline in
utilization in the short-term rental facilities in 1995 compared to 1994 levels;
(b) Railcar revenue decreased $88,603 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;
(c) Marine container revenue decreased $3,116 due to the disposal of five
marine containers in 1994 and four in 1995.
(2) For the nine months ended September 30, 1995, the Partnership realized a
gain of $100,416 on the sale or disposition of 20 trailers and three marine
containers, compared to the same period in 1994, where the Partnership realized
a gain of $75,781 on the sale or disposal of eight tractors, five trailers, one
Letro Porter and one marine container.
(B) Expenses
Total expenses of $415,872 for the nine months ended September 30, 1995,
decreased from $537,557 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.
(1) Direct operating expenses (defined as repairs and maintenance) decreased to
$51,170 in the nine months ended September 30, 1995, from $80,231 in the same
period in 1994. This decrease was attributable to a decrease in repairs and
maintenance due to the sale of nine trailers in 1994 and 20 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 $364,702 in the nine months ended September 30, 1995, from $457,326 in the
same period in 1994. This change resulted primarily from:
(a) a decrease in depreciation expense of $90,833 from 1994 levels
reflecting assets sales or dispositions during 1995 and 1994;
(b) a decrease in management fees to affiliate of $11,895 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 $10,104 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 $94,735 in the nine months ended September 30,
1995, decreased from a net income of $175,689 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 nine months
ended September 30, 1995, is not necessarily indicative of future periods. In
the nine months ended September 30, 1995, the Partnership distributed $566,700
to the Limited Partners, or approximately $32.46 per unit.
TEP IXC
(A) Revenues
Total revenues for the nine months ended September 30, 1995, increased to
$756,015 from $717,627 for the same period in 1994, due primarily to a larger
gain recorded from the sale of assets in 1995 compared to the same period in
1994, offset by lower lease revenues in 1995 compared to 1994.
(1) Lease revenue decreased to $503,101 in the nine months ended September 30,
1995, from $711,109 in the same period in 1994. The following table lists lease
revenues earned by equipment type:
For the nine months ended
September 30,
1995 1994
-------------------------------
Trailers and tractors $ 409,294 $ 561,759
Aircraft 51,300 65,588
Rail equipment 33,910 76,933
Marine containers 8,597 6,829
-------------------------------
$ 503,101 $ 711,109
===============================
The decline was due primarily to the following:
(a) Trailer revenue decreased $152,465 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) Rail revenue decreased $43,023 in 1995, as compared to 1994 levels due
to the sale of five twin stack railcars in the first quarter of 1995;
(c) Aircraft revenue decreased $14,288 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;
(d) Marine container revenue increased $1,768 primarily due to an increase
in utilization for dry marine containers from 1994 levels.
(2) For the nine months ended September 30, 1995, the Partnership realized a
gain of $234,869 on the sale or disposal of four trailers, five twin stack
railcars and one marine container, 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 $12,014 due to an increase in cash
available for short-term investment.
(B) Expenses
Total expenses of $525,604 for the nine months ended September 30, 1995,
decreased from $607,238 for the same period in 1994. The decrease in 1995
expenses was attributable to decreases in depreciation, all general and
administrative expenses and management fees and bad debt expense, offset by an
increase in repairs and maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$119,546 in the nine months ended September 30, 1995, from $109,272 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 $406,058 in the
nine months ended September 30, 1995, from $497,966 in the same period in 1994.
This change resulted primarily from:
(a) a decrease in depreciation expense of $32,014 from 1994 levels
reflecting asset sales during 1995;
(b) a decrease in general and administrative expenses of $27,465 due to
lower administrative costs associated with the Partnership;
(c) a decrease of $21,855 in bad debt expense due to the General Partner's
evaluation that previously establish reserves are no longer required based on
the current open receivable balances and the current customer mix;
(d) a decrease in management fees to affiliate of $10,573 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 $230,411 in the nine months ended
September 30, 1995, from $110,389 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 nine months ended September
30, 1995, is not necessarily indicative of future periods. In the nine months
ended September 30, 1995, the Partnership distributed $800,112 to the Limited
Partners, or approximately $47.30 per unit.
TEP IXD
(A) Revenues
Total revenues of $313,613 for the nine months ended September 30, 1995
decreased from $433,584 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 $214,872 in the nine months ended September 30,
1995, from $405,940 in the same period in 1994. The following table lists lease
revenue earned by equipment type:
For the nine months ended
September 30,
1995 1994
-------------------------------
Trailers $ 149,322 $ 348,394
Marine containers 65,550 57,546
-------------------------------
$ 214,872 $ 405,940
===============================
The decrease was due to the following:
(a) Trailer revenue decreased $199,072 due primarily to the sale of 30
trailers during the first six months of 1995, and lower utilization in
short-term rental facilities operated by an affiliate of the General Partner;
(b) Marine container revenue increased $8,004 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 38 marine containers in 1995 and 24 in 1994.
(2) For the nine months ended September 30, 1995, the Partnership realized a
gain of $78,354 on the sale or disposal of 30 trailers and 38 marine containers,
compared to the same period in 1994, where the Partnership realized a gain
$12,466 on the sale or disposition of 24 marine containers and one trailer.
(3) Interest and other income increased $5,209 due to an increase in cash
available for short-term investment.
<PAGE>
(B) Expenses
Total expenses of $282,970 for the nine months ended September 30, 1995,
decreased from $301,498 for the same period in 1994. The decrease in 1995
expenses was attributable primarily to decreases in depreciation and management
fees, partially offset by increases in bad debt expense and repair and
maintenance.
(1) Direct operating expenses (defined as repairs and maintenance) increased to
$41,914 in the nine months ended September 30, 1995, from $34,622 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 $241,056 in the nine months ended September 30, 1995, from $266,876 in the
same period in 1994. This change resulted primarily from:
(a) a decrease in depreciation expense of $43,620 from 1994 levels,
reflecting asset sales or dispositions during 1995;
(b) a decrease in management fees to affiliate of $11,509 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 $25,634 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 $3,675 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 $30,643 in the nine months ended September 30,
1995, decreased from a net income of $132,086 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 nine months
ended September 30, 1995, is not necessarily indicative of future periods. In
the nine months ended September 30, 1995, the Partnership distributed $707,090
to the Limited Partners, or approximately $74.20 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 IXD 1986 INCOME FUND
By: PLM Financial Services, Inc.
General Partner
Date: November 10, 1995 By: /s/ David J. Davis
-------------------
David J. Davis
Vice President and
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 298,746
<SECURITIES> 0
<RECEIVABLES> 40,339
<ALLOWANCES> 45,990
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 1,730,204
<DEPRECIATION> 1,392,773
<TOTAL-ASSETS> 706,939
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 701,443
<TOTAL-LIABILITY-AND-EQUITY> 706,939
<SALES> 0
<TOTAL-REVENUES> 313,613
<CGS> 0
<TOTAL-COSTS> 282,970
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 30,643
<INCOME-TAX> 0
<INCOME-CONTINUING> 30,643
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,643
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
