UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the fiscal quarter ended March 31, 1997.
[ ] 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 800, 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>
March 31, December 31,
1997 1996
----------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 3,147,224 $ 3,486,094
Less accumulated depreciation (2,861,437 ) (3,140,358 )
----------------------------------------
Net equipment 285,787 345,736
Cash and cash equivalents 263,812 211,878
Accounts receivable, net of allowance for doubtful
accounts of $59,314 in 1997 and $57,870 in 1996 78,384 97,754
Prepaid insurance 1,833 2,438
----------------------------------------
Total assets $ 629,816 $ 657,806
========================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 5,059 $ 5,059
Accounts payable and other liabilities 6,886 9,350
--------------------------------------
Total liabilities 11,945 14,409
Partners' capital (deficit):
Limited Partners (24,285 units) 718,647 743,918
General Partner (100,776 ) (100,521 )
--------------------------------------
Total partners' capital 617,871 643,397
--------------------------------------
Total liabilities and partners' capital $ 629,816 $ 657,806
======================================
</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
March 31,
1997 1996
---------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 74,417 $ 111,137
Interest and other income 2,487 10,965
Gain on disposition of equipment 58,174 2,669
----------------------------------
Total revenues 135,078 124,771
Expenses:
Depreciation 41,804 53,234
Management fees to affiliate 15,178 16,026
Repairs and maintenance 6,401 11,994
Insurance expense 906 2,942
General and administrative
expenses to affiliates 17,917 23,657
Other general and administrative expenses 11,353 17,635
Provision for bad debts 1,331 354
----------------------------------
Total expenses 94,890 125,842
----------------------------------
Net income (loss) $ 40,188 $ (1,071 )
==================================
Partners' share of net income (loss)
Limited Partners - 99% $ 39,786 $ (1,060 )
General Partner - 1% 402 (11 )
----------------------------------
Total $ 40,188 $ (1,071 )
==================================
Net income (loss) per Limited
Partnership Unit - 24,285 units $ 1.64 $ (0.04 )
==================================
Cash distributions $ 65,174 $ 74,465
==================================
Cash distributions per weighted average Limited
Partnership Unit $ 2.68 $ 3.04
==================================
Special cash distributions $ -- $ 1,000,000
==================================
Special cash distributions per weighted average
Limited Partnership Unit $ -- $ 40.77
==================================
Total cash distribution per weighted average
Limited Partnership Unit $ 2.68 $ 43.81
==================================
</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, 1995 to March 31, 1997
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
-----------------------------------------------------
<S> <C> <C> <C>
Partners' capital (deficit)
at December 31, 1995 $ 2,087,769 $ (86,946 ) $ 2,000,823
Net income 317,231 3,204 320,435
Quarterly cash distributions (275,082 ) (2,779 ) (277,861 )
Special distributions (1,386,000 ) (14,000 ) (1,400,000 )
---------------------------------------------------------
Partners' capital (deficit)
at December 31, 1996 743,918 (100,521 ) 643,397
Net income 39,786 402 40,188
Quarterly cash distributions (65,057 ) (657 ) (65,714 )
---------------------------------------------------------
Partners' capital (deficit)
at March 31, 1997 $ 718,647 $ (100,776 ) $ 617,871
=========================================================
</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 three months
ended March 31,
1997 1996
----------------------------------
<S> <C> <C>
Operating activities:
Net income (loss) $ 40,188 $ (1,071 )
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Gain on disposition of equipment (58,174 ) (2,669 )
Depreciation 41,804 53,234
Changes in operating assets and liabilities
Accounts receivable, net 19,370 27,375
Prepaid insurance 605 1,384
Accounts payable and other liabilities (2,464 ) (13,303 )
Lessee deposits and reserves -- (18,272 )
------------------------------------
Cash provided by operating activities 41,329 46,678
------------------------------------
Investing activities:
Proceeds from disposition of equipment 76,319 3,301
Payments received on sales-type lease -- 1,003,564
------------------------------------
Cash provided by investing activities 76,319 1,006,865
------------------------------------
Financing activities:
Cash distributions paid to Limited Partners (65,057 ) (1,063,720 )
Cash distributions paid to General Partner (657 ) (10,745 )
------------------------------------
Cash used in financing activities (65,714 ) (1,074,465 )
------------------------------------
Cash and cash equivalents:
Net increase (decrease) in cash and cash equivalents 51,934 (20,922 )
Cash and cash equivalents at beginning of period 211,878 251,709
------------------------------------
Cash and cash equivalents at end of period $ 263,812 $ 230,787
====================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc., the General
Partner, the accompanying unaudited financial statements contain all adjustments
necessary, consisting only of normal recurring accruals, to present fairly the
Partnership's financial position as of March 31, 1997 and December 31, 1996, the
statements of operations and cash flows for the three months ended March 31,
1997 and 1996, and the statements of changes in partners' capital for the period
from December 31, 1995 to March 31, 1997. 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, 1996,
on file at the Securities and Exchange Commission.
2. Reclassification
Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation.
3. Equipment
Equipment held for operating leases is stated at cost. The components of
equipment are as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-------------------------------------
<S> <C> <C>
Marine containers $ 1,109,619 $ 1,128,798
Trailers 2,037,605 2,357,296
-------------------------------------
3,147,224 3,486,094
Less accumulated depreciation (2,861,437 ) (3,140,358 )
-------------------------------------
Net equipment $ 285,787 $ 345,736
=====================================
</TABLE>
With the exception of one sidelift, all equipment was either on lease or
operating in PLM-affiliated short-term rental facilities as of March 31, 1997
and December 31, 1996. The net carrying value of this sidelift was $21,793 and
$28,433, respectively, as of March 31, 1997 and December 31, 1996.
During the three months ended March 31, 1997, the Partnership sold or disposed
of a marine container and trailers with an aggregate book value of $18,145 for
proceeds of $76,319. During the three months ended March 31, 1996, the
Partnership sold or disposed of a marine container with an aggregate book value
of $633 for proceeds of $673. Additional proceeds of $2,629 were received for
the commuter aircraft which was under sales-type lease.
4. Liquidation and special distributions
During the first quarter of 1996, the Partnership completed its 10th year of
operations. As originally anticipated by the General Partner, the Partnership
will be liquidated in an orderly manner in its 11th and 12th years of operation.
The General Partner is actively marketing the remaining equipment portfolio with
the intent of maximizing sale proceeds. As sale proceeds are received the
General Partner intends to periodically declare special distributions to
distribute the sale proceeds to the partners. During the liquidation phase of
the Partnership the equipment will continue to be leased under operating leases
until sold. Operating cash flows, to the extent they exceed Partnership
expenses, will continue to be
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
4. Liquidation and special distributions (continued)
distributed on a quarterly basis to partners. The amounts reflected for assets
and liabilities of the Partnership have not been adjusted to reflect liquidation
values. The equipment portfolio continues to be carried at the lower of
depreciated cost or fair value less cost to dispose. Although the General
Partner estimates that there will be distributions after liquidation of assets
and liabilities, the amounts cannot be accurately determined prior to actual
liquidation of the equipment. Any excess proceeds over expected Partnership
obligations will be distributed to the Partners throughout the liquidation
period. Upon final liquidation, the Partnership will be dissolved.
No special distributions were paid in the first quarter of 1997. During the
three months ended March 31, 1996, the General Partner paid special
distributions of $40.77 per Limited Partnership Unit which were the result of
proceeds from the sale of equipment. The Partnership is not permitted to
reinvest proceeds from sales or liquidations of equipment. These proceeds, in
excess of operational cash requirements, are periodically paid out to limited
partners in the form of special distributions. The sales and liquidations occur
because of equipment destructions, the determination by the General Partner that
it is the appropriate time to maximize the return on an asset through sale of
that asset, and, in some leases, the ability of the lessee to exercise purchase
options.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
--------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 1,721,058 $ 1,961,397
Less accumulated depreciation (1,574,834 ) (1,769,486 )
--------------------------------------
Net equipment 146,224 191,911
Cash and cash equivalents 165,786 478,922
Accounts receivable, net of allowance for doubtful
accounts of $22,285 in 1997 and $22,285 in 1996 31,787 28,720
Prepaid insurance 1,383 1,879
--------------------------------------
Total assets $ 345,180 $ 701,432
======================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 3,637 $ 3,637
Accounts payable and other liabilities 6,567 9,637
--------------------------------------
Total liabilities 10,204 13,274
Partners' capital (deficit):
Limited Partners (17,460 units) 408,493 758,143
General Partner (73,517 ) (69,985 )
-------------- --------------
-------- --
Total partners' capital 334,976 688,158
--------------------------------------
Total liabilities and partners' capital $ 345,180 $ 701,432
======================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 20,242 $ 77,492
Interest and other income 4,109 4,095
Gain on disposition of equipment 31,354 11,851
-----------------------------
Total revenues 55,705 93,438
Expenses:
Depreciation 26,041 38,369
Management fees to affiliate 10,913 10,913
Repairs and maintenance 2,773 9,658
Insurance expense 716 1,892
General and administrative
expenses to affiliates 11,207 19,388
Other general and administrative expenses 9,174 9,431
Provision for (recovery of) bad debts -- (1,254 )
-----------------------------
Total expenses 60,824 88,397
Equity in net loss of unconsolidated special
purpose entity -- (20,867 )
-----------------------------
Net loss $ (5,119 ) $ (15,826 )
=============================
Partners' share of net loss
Limited Partners - 99% $ (5,068 ) $ (15,668 )
General Partner - 1% (51 ) (158 )
-----------------------------
Total $ (5,119 ) $ (15,826 )
=============================
Net loss per Limited
Partnership Unit - 17,460 units $ (0.29 ) $ (0.90 )
=============================
Cash distributions $ 48,063 $ 101,751
=============================
Cash distributions per weighted average Limited
Partnership Unit $ 2.73 $ 5.77
=============================
Special distributions $ 300,000 $ --
=============================
Special distributions per weighted average Limited
Partnership Unit $ 17.01 $ --
=============================
Total distributions per weighted average Limited
Partnership Unit $ 19.74 $ 5.77
=============================
</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, 1995 to March 31, 1997
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
-----------------------------------------------------
<S> <C> <C> <C>
Partners' capital (deficit)
at December 31, 1995 $ 1,132,364 $ (66,205 ) $ 1,066,159
Net income 468,643 4,734 473,377
Quarterly cash distributions (397,364 ) (4,014 ) (401,378 )
Cash distributions (445,500 ) (4,500 ) (450,000 )
-----------------------------------------------------
Partners' capital (deficit)
at December 31, 1996 758,143 (69,985 ) 688,158
Net loss (5,068 ) (51 ) (5,119 )
Quarterly cash distributions (47,582 ) (481 ) (48,063 )
Special cash distributions (297,000 ) (3,000 ) (300,000 )
-----------------------------------------------------
Partners' capital (deficit)
at March 31, 1997 $ 408,493 $ (73,517 ) $ 334,976
=====================================================
</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 three months ended
March 31,
1997 1996
---------------------------------
<S> <C> <C>
Operating activities:
Net loss $ (5,119 ) $ (15,826 )
Adjustments to reconcile net loss
to net cash provided by operating activities:
Gain on disposition of equipment (31,354 ) (11,851 )
Depreciation 26,041 38,369
Equity in net loss from unconsolidated special
purpose entity -- 20,867
Changes in operating assets and liabilities:
Accounts receivable, net (3,067 ) 10,295
Prepaid insurance 496 956
Accounts payable and other liabilities (3,070 ) (2,909 )
Lessee deposits and reserve for repairs -- (9,304 )
---------------------------------
Cash (used in) provided by operating activities (16,073 ) 30,597
---------------------------------
Investing activities:
Proceeds from disposition of equipment 51,000 35,592
Distributions from unconsolidated special purpose entity -- 16,156
---------------------------------
Cash provided by investing activities 51,000 51,748
Cash flows used in financing activities:
Cash distributions paid to Limited Partners (344,582 ) (100,733 )
Cash distributions paid to General Partner (3,481 ) (1,018 )
---------------------------------
Cash used in financing activities (348,063 ) (101,751 )
---------------------------------
Cash and cash equivalents:
Net decrease in cash and cash equivalents (313,136 ) (19,406 )
Cash and cash equivalents at beginning of period 478,922 351,363
---------------------------------
Cash and cash equivalents at end of period $ 165,786 $ 331,957
=================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc., the General
Partner, the accompanying unaudited financial statements contain all adjustments
necessary, consisting only of normal recurring accruals, to present fairly the
Partnership's financial position as of March 31, 1997 and December 31, 1996, the
statements of operations and cash flows for the three months ended March 31,
1997 and 1996, and the statements of changes in partners' capital for the period
from December 31, 1995 to March 31, 1997. 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, 1996,
on file at the Securities and Exchange Commission.
2. Reclassification
Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation.
3. Equipment
Owned equipment held for operating leases is stated at cost. The components of
owned equipment are as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-----------------------------------
<S> <C> <C>
Marine containers $ 325,115 $ 325,115
Trailers and tractor 1,395,943 1,636,282
-----------------------------------
1,721,058 1,961,397
Less accumulated depreciation (1,574,834 ) (1,769,486 )
-----------------------------------
Net equipment $ 146,224 $ 191,911
===================================
</TABLE>
With the exception of one sidelift, all equipment was either on lease or
operating in PLM affiliated short-term rental facilities as of March 31, 1997
and December 31, 1996. The carrying value of this sidelift were $39,804 and
$46,438, respectively, as of March 31, 1997 and December 31, 1996.
During the three months ended March 31, 1997, the Partnership sold or disposed
of trailers with a net book value of $19,646 for proceeds of $51,000. During the
three months ended March 31, 1996, the Partnership sold or disposed of trailers
and marine containers with an aggregate net book value of $23,741 for proceeds
of $35,592.
4. Liquidation and special distributions
During the first quarter of 1996, the Partnership completed its 10th year of
operations. As originally anticipated by the General Partner, the Partnership
will be liquidated in an orderly manner in its 11th and 12th years of operation.
The General Partner is actively marketing the remaining equipment portfolio with
the intent of maximizing sale proceeds. As sale proceeds are received the
General Partner intends to periodically declare special distributions to
distribute the sale proceeds to the partners. During the liquidation phase of
the Partnership the equipment will continue to be leased under operating leases
until
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
4. Liquidation and special distributions (continued)
sold. Operating cash flows, to the extent they exceed Partnership expenses, will
continue to be distributed on a quarterly basis to partners. The amounts
reflected for assets and liabilities of the Partnership have not been adjusted
to reflect liquidation values. The equipment portfolio continues to be carried
at the lower of depreciated cost or fair value less cost to dispose. Although
the General Partner estimates that there will be distributions after liquidation
of assets and liabilities, the amounts cannot be accurately determined prior to
actual liquidation of the equipment. Any excess proceeds over expected
Partnership obligations will be distributed to the Partners throughout the
liquidation period. Upon final liquidation, the Partnership will be dissolved.
During the three months ended March 31, 1997, the General Partner paid special
distributions of $17.01 per Limited Partnership Unit which were the result of
proceeds from equipment liquidations. No special distributions were paid in the
first quarter of 1996. The Partnership is not permitted to reinvest proceeds
from sales or liquidations of equipment. These proceeds, in excess of
operational cash requirements, are periodically paid out to limited partners in
the form of special distributions. The sales and liquidations occur because of
equipment destructions, the determination by the General Partner that it is the
appropriate time to maximize the return on an asset through sale of that asset,
and, in some leases, the ability of the lessee to exercise purchase options.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
----------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 2,765,542 $ 3,088,393
Less accumulated depreciation (2,513,614 ) (2,767,149 )
----------------------------------------
Net equipment 251,928 321,244
Cash and cash equivalents 197,895 264,450
Accounts receivable, net of allowance for doubtful
accounts of $5,165 in 1997 and $2,249 in 1996 52,847 66,079
Prepaid insurance 2,023 2,663
----------------------------------------
Total assets $ 504,693 $ 654,436
========================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 3,523 $ 3,523
Accounts payable and other liabilities 8,833 14,382
---------------------------------------
Total liabilities 12,356 17,905
Partners' capital (deficit):
Limited Partners (16,914 units) 561,876 704,628
General Partner (69,539 ) (68,097 )
-------------- --------------
--------- --
Total partners' capital 492,337 636,531
---------------------------------------
Total liabilities and partners' capital $ 504,693 $ 654,436
=======================================
</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
March 31,
1997 1996
------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 73,450 $ 106,638
Interest and other income 2,629 2,915
Gain on disposition of equipment 49,863 1,688
-----------------------------
Total revenues 125,942 111,241
Expenses:
Depreciation 39,629 53,986
Management fees to affiliate 10,568 11,434
Repairs and maintenance 22,763 33,878
Insurance expense 1,003 1,827
General and administrative
expenses to affiliates 27,531 31,942
Other general and administrative expenses 8,709 9,460
Provision for (recovery of) bad debts 2,916 (5,667 )
-----------------------------
Total expenses 113,119 136,860
Equity in net loss of unconsolidated special
purpose entity -- (12,550 )
-----------------------------
Net income (loss) $ 12,823 $ (38,169 )
=============================
Partners' share of net income (loss):
Limited Partners - 99% $ 12,695 $ (37,787 )
General Partner - 1% 128 (382 )
-----------------------------
Total $ 12,823 $ (38,169 )
=============================
Net income (loss) per Limited
Partnership Unit (16,914 units) $ 0.75 $ (2.23 )
=============================
Cash distributions $ 57,017 $ 98,773
=============================
Cash distributions per weighted average Limited
Partnership Unit $ 3.34 $ 5.78
=============================
Special distributions $ 100,000 $ -
=============================
Special distributions per weighted average Limited
Partnership Unit $ 5.85 $ --
=============================
Total distributions per weighted average Limited
Partnership Unit $ 9.19 $ 5.78
=============================
</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, 1995 to March 31, 1997
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
-------------------------------------------------------
<S> <C> <C> <C>
Partners' capital (deficit)
at December 31, 1995 $ 1,208,326 $ (63,009 ) $ 1,145,317
Net income 103,990 1,050 105,040
Quarterly cash distributions (310,688 ) (3,138 ) (313,826 )
Cash distributions (297,000 ) (3,000 ) (300,000 )
-------------------------------------------------------
Partners' capital (deficit)
at December 31, 1996 704,628 (68,097 ) 636,531
Net income 12,695 128 12,823
Quarterly cash distributions (56,447 ) (570 ) (57,017 )
Special distributions (99,000 ) (1,000 ) (100,000 )
-------------------------------------------------------
Partners' capital (deficit)
at March 31, 1997 $ 561,876 $ (69,539 ) $ 492,337
=======================================================
</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 three months ended March
31,
1997 1996
----------------------------------
<S> <C> <C>
Operating activities:
Net income (loss) $ 12,823 $ (38,169 )
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Gain on disposition of equipment (49,863 ) (1,688 )
Depreciation 39,629 53,986
Equity in net loss from unconsolidated special purpose entity 12,550
Change in operating assets and liabilities
Accounts receivable, net 13,232 40,417
Prepaid insurance 640 (10,335 )
Accounts payable and other liabilities (5,549 ) (2,259 )
Lessee deposits and reserves for repairs -- (27,601 )
---------------------------------
Cash provided by operating activities 10,912 26,901
---------------------------------
Investing activities:
Proceeds from disposition of equipment 79,550 5,208
Distributions from unconsolidated special purpose entity -- 3,130
---------------------------------
Cash provided by (used in) investing activities 79,550 8,338
---------------------------------
Cash flows used in financing activities:
Cash distributions paid to Limited Partners (155,447 ) (97,785 )
Cash distributions paid to General Partner (1,570 ) (988 )
---------------------------------
Cash used in financing activities (157,017 ) (98,773 )
---------------------------------
Cash and cash equivalents:
Net decrease in cash and cash equivalents (66,555 ) (63,534 )
Cash and cash equivalents at beginning of period 264,450 248,504
---------------------------------
Cash and cash equivalents at end of period $ 197,895 $ 184,970
=================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc., the General
Partner, the accompanying unaudited financial statements contain all adjustments
necessary, consisting only of normal recurring accruals, to present fairly the
Partnership's financial position as of March 31, 1997 and December 31, 1996, the
statements of operations and cash flows for the three months ended March 31,
1997 and 1996, and the statements of changes in partners' capital for the period
from December 31, 1995 to March 31, 1997. 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, 1996,
on file at the Securities and Exchange Commission.
2. Reclassification
Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation.
3. Equipment
Equipment held for operating leases is stated at cost.
The components of owned equipment are as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
------------------------------------
<S> <C> <C>
Marine containers $ 114,623 $ 114,623
Trailers and tractor 2,650,919 2,973,770
------------------------------------
2,765,542 3,088,393
Less accumulated depreciation (2,513,614 ) (2,767,149 )
------------------------------------
Net equipment $ 251,928 $ 321,244
====================================
</TABLE>
All of the equipment was either on lease or operating in PLM-affiliated
short-term rental facilities as of March 31, 1997 and December 31, 1996.
During the three months ended March 31, 1997, the Partnership sold or disposed
of trailers with a net book value of $29,687 for proceeds of $79,550. During the
three months ended March 31, 1996, the Partnership sold or disposed of a marine
container with a net book value of $3,520 for proceeds of $5,208.
4. Liquidation and special distributions
During the first quarter of 1996, the Partnership completed its 10th year of
operations. As originally anticipated by the General Partner, the Partnership
will be liquidated in an orderly manner in its 11th and 12th years of operation.
The General Partner is actively marketing the remaining equipment portfolio with
the intent of maximizing sale proceeds. As sale proceeds are received the
General Partner intends to periodically declare special distributions to
distribute the sale proceeds to the partners. During the
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
4. Liquidation and special distributions (continued)
liquidation phase of the Partnership the equipment will continue to be leased
under operating leases until sold. Operating cash flows, to the extent they
exceed Partnership expenses, will continue to be distributed on a quarterly
basis to partners. The amounts reflected for assets and liabilities of the
Partnership have not been adjusted to reflect liquidation values. The equipment
portfolio continues to be carried at the lower of depreciated cost or fair value
less cost to dispose. Although the General Partner estimates that there will be
distributions after liquidation of assets and liabilities, the amounts cannot be
accurately determined prior to actual liquidation of the equipment. Any excess
proceeds over expected Partnership obligations will be distributed to the
Partners throughout the liquidation period. Upon final liquidation, the
Partnership will be dissolved.
During the three months ended March 31, 1997, the General Partner paid special
distributions of $5.85 per Limited Partnership Unit which were the result of
proceeds from equipment liquidations. No special distributions were paid in the
first quarter of 1996. The Partnership is not permitted to reinvest proceeds
from sales or liquidations of equipment. These proceeds, in excess of
operational cash requirements, are periodically paid out to limited partners in
the form of special distributions. The sales and liquidations occur because of
equipment destructions, the determination by the General Partner that it is the
appropriate time to maximize the return on an asset through sale of that asset,
and, in some leases, the ability of the lessee to exercise purchase options.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
----------------------------------------
<S> <C> <C>
Equipment held for operating leases, at cost $ 1,316,871 $ 1,463,355
Less accumulated depreciation (1,171,746 ) (1,280,566 )
----------------------------------------
Net equipment 145,125 182,789
Cash and cash equivalents 107,814 77,140
Accounts receivable, net of allowance for doubtful
accounts of $29,668 in 1997 and $29,601 in 1996 4,601 15,839
Prepaid insurance 2,012 2,293
----------------------------------------
Total assets $ 259,552 $ 278,061
========================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to affiliates $ 1,985 $ 1,985
Accounts payable and other liabilities 6,557 9,477
---------------------------------------
Total liabilities 8,542 11,462
Partners' capital (deficit):
Limited Partners (9,529 units) 290,326 305,760
General Partner (39,316 ) (39,161 )
---------------------------------------
Total partners' capital 251,010 266,599
---------------------------------------
Total liabilities and partners' capital $ 259,552 $ 278,061
=======================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 19,219 $ 55,242
Interest and other income 837 2,566
Gain (loss) on disposition of equipment 25,044 (997 )
-----------------------------
Total revenues 45,100 56,811
Expenses:
Depreciation 19,489 23,563
Management fees to affiliate 5,956 5,956
Repairs and maintenance 2,716 11,225
Provision for (recovery of) bad debts 67 (3,328 )
Insurance expense 435 352
General and administrative
expenses to affiliates 6,904 15,417
Other general and administrative expenses 6,573 8,900
-----------------------------
Total expenses 42,140 62,085
-----------------------------
Net income (loss) $ 2,960 $ (5,274 )
=============================
Partners' share of net loss:
Limited Partners - 99% $ 2,930 $ (5,221 )
General Partner - 1% 30 (53 )
---------------------------
Total $ 2,960 $ (5,274 )
=============================
Net income (loss) per Limited
Partnership Unit (9,529 units) $ 0.31 $ (0.55 )
=============================
Cash distributions $ 18,549 $ 48,245
=============================
Cash distributions per weighted average Limited
Partnership Unit $ 1.93 $ 5.01
=============================
</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, 1995 to March 31, 1997
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
-------------------------------------------------------
<S> <C> <C> <C>
Partners' capital (deficit)
at December 31, 1995 $ 603,509 $ (36,153 ) $ 567,356
Net loss (16,504 ) (167 ) (16,671 )
Quarterly cash distributions (132,745 ) (1,341 ) (134,086 )
Special distributions (148,500 ) (1,500 ) (150,000 )
-------------------------------------------------------
Partners' capital (deficit)
at December 31, 1996 305,760 (39,161 ) 266,599
Net income 2,930 30 2,960
Cash distributions (18,364 ) (185 ) (18,549 )
-------------------------------------------------------
Partners' capital (deficit)
at March 31, 1997 $ 290,326 $ (39,316 ) $ 251,010
=======================================================
</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 three months ended
March 31,
1997 1996
---------------------------------
<S> <C> <C>
Operating activities:
Net income (loss) $ 2,960 $ (5,274 )
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Gain (loss) on disposition of equipment (25,044 ) 997
Depreciation 19,489 23,563
Changes in operating assets and liabilities
Accounts receivable, net 11,238 (6,220 )
Prepaid insurance 281 14,811
Accounts payable and other liabilities (2,920 ) 480
---------------------------------
Cash provided by operating activities 6,004 28,357
---------------------------------
Investing activities:
Proceeds from disposition of equipment 43,219 3,279
---------------------------------
Cash provided by investing activities 43,219 3,279
---------------------------------
Cash flows used in financing activities:
Cash distributions paid to Limited Partners (18,364 ) (47,763 )
Cash distributions paid to General Partner (185 ) (482 )
---------------------------------
Cash used in financing activities (18,549 ) (48,245 )
---------------------------------
Cash and cash equivalents:
Net increase (decrease) in cash and cash equivalents 30,674 (16,609 )
Cash and cash equivalents at beginning of period 77,140 191,840
---------------------------------
Cash and cash equivalents at end of period $ 107,814 $ 175,231
=================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc., the General
Partner, the accompanying unaudited financial statements contain all adjustments
necessary, consisting only of normal recurring accruals, to present fairly the
Partnership's financial position as of March 31, 1997 and December 31, 1996, the
statements of operations and cash flows for the three months ended March 31,
1997 and 1996, and the statements of changes in partners' capital for the period
from December 31, 1995 to March 31, 1997. 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, 1996,
on file at the Securities and Exchange Commission.
2. Reclassification
Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation.
3. Equipment
Equipment held for operating leases is stated at cost. The components of
equipment are as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-------------------------------------
<S> <C> <C>
Marine containers $ 238,005 $ 255,421
Trailers 1,078,866 1,207,934
-------------------------------------
1,316,871 1,463,355
Less accumulated depreciation (1,171,746 ) (1,280,566 )
-------------------------------------
Net equipment $ 145,125 $ 182,789
=====================================
</TABLE>
All equipment owned by the Partnership was either on lease or operating in
PLM-affiliated short-term rental facilities as of March 31, 1997 and December
31, 1996.
During the three months ended March 31, 1997, the Partnership sold or disposed
of marine containers and trailers with an aggregate net book value of $18,175
for proceeds of $43,219. During the three months ended March 31, 1996, the
Partnership sold or disposed of marine containers with an aggregate net book
value of $4,276 for proceeds of $3,279.
4. Liquidation
During the first quarter of 1996, the Partnership completed its 10th year of
operations. As originally anticipated by the General Partner, the Partnership
will be liquidated in an orderly manner in its 11th and 12th years of operation.
The General Partner is actively marketing the remaining equipment portfolio with
the intent of maximizing sale proceeds. As sale proceeds are received the
General Partner intends to periodically declare special distributions to
distribute the sale proceeds to the partners. During the liquidation phase of
the Partnership the equipment will continue to be leased under operating leases
until
<PAGE>
PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
4. Liquidation (continued)
sold. Operating cash flows, to the extent they exceed Partnership expenses, will
continue to be distributed on a quarterly basis to partners. The amounts
reflected for assets and liabilities of the Partnership have not been adjusted
to reflect liquidation values. The equipment portfolio continues to be carried
at the lower of depreciated cost or fair value less cost to dispose. Although
the General Partner estimates that there will be distributions after liquidation
of assets and liabilities, the amounts cannot be accurately determined prior to
actual liquidation of the equipment. Any excess proceeds over expected
Partnership obligations will be distributed to the Partners throughout the
liquidation period. Upon final liquidation, the Partnership will be dissolved.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(I) Results of operations
Comparison of the Partnership's Operating Results for the Three Months Ended
March 31, 1997 and 1996
TEP IXA
(A) Revenues
Total revenues of $135,078 for the quarter ended March 31, 1997, increased from
$124,771 for the same period in 1996, due primarily to higher gain on
disposition on equipment in the first quarter of 1996, compared to the same
period in 1997, offset by lower lease revenues and lower interest and other
income.
(1) Lease revenue decreased to $74,417 in the first quarter 1997, from $111,137
in the same period of 1996. The following table lists lease revenues earned by
equipment type:
For the three months ended
March 31,
1997 1996
-------------------------------
Trailers $ 56,096 $ 55,317
Rail equipment -- 25,950
Marine containers 18,321 29,870
------------------------------
$ 74,417 $ 111,137
==============================
The decline was due primarily to the following:
(a) Railcar revenue decreased $25,950 due to the sale of all railcars
during 1996;
(b) Container revenue decreased $11,549 due to the sale or disposition of
equipment and lower utilization in the first quarter of 1997 compared to the
same period of 1996.
(2) For the quarter ended March 31, 1997, the Partnership realized a gain of
$58,174 on the sale or disposition of marine container and trailers. In the same
period in 1996, the Partnership realized a gain of $2,669 which included a gain
of $40 on the disposition of a marine container and an additional gain of $2,629
from a commuter aircraft which was under a sales-type lease.
(B) Expenses
Total expenses of $94,890 for the quarter ended March 31, 1997, decreased from
$125,842 for the same period in 1996. The decrease in expenses in the first
quarter of 1997, was attributable to decreases in general and administrative
expenses, depreciation expense, and repairs and maintenance.
(1) Direct operating expenses (defined as repairs and maintenance and insurance)
decreased to $7,307 in the first quarter of 1997, from $14,936 in the first
quarter of 1996, due primarily to the sale of equipment during 1996 and the
first quarter of 1997.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, bad debt expense, and general and administrative expenses) decreased to
$87,583 in the first quarter 1997, from $110,906 in the same period in 1996.
This change resulted primarily from:
(a) a decrease in depreciation expense of $11,430 reflecting asset sales or
dispositions during the first quarter of 1997 and during 1996;
(b) a decrease in general and administrative expenses of $12,022 reflects
the decreased accounting and administrative costs related to the short-term
rental facilities due to the sale of equipment.
(C) Net Income (loss)
As a result of the foregoing, the Partnership generated a net income of $40,188
in the first quarter 1997, versus a net loss of $1,071 in the same period in
1996. The Partnership's ability to operate or liquidate assets, secure leases,
and re-lease those assets whose leases expire during the duration of the
Partnership is subject to many factors, and the Partnership's performance in the
first quarter 1997, is not necessarily indicative of future periods. In the
first quarter 1997, the Partnership distributed $65,057 to the Limited Partners,
or approximately $2.68 per weighted average unit.
TEP IXB
(A) Owned equipment operations
Revenues less direct expenses (defined as repairs and maintenance and asset
specific insurance expense) on owned equipment decreased for the quarter ended
March 31, 1997, when compared to the same period of 1996. The following table
presents revenues less direct expenses by owned equipment type:
<TABLE>
<CAPTION>
For the three months
ended March 31,
1997 1996
------------------------------
<S> <C> <C>
Trailers $ 10,184 $ 38,958
Railcar equipment 2,431 21,579
Marine containers 4,420 6,835
</TABLE>
Trailers: Trailer revenues and direct expenses were $13,206 and $3,022,
respectively, for the quarter ended March 31, 1997, compared to $48,721 and
$9,763, respectively, during the same period of 1996. The decrease in
contribution was due to lower utilization of trailers in the short-term rental
facilities and the disposition of trailers;
Railcar equipment: Railcar revenues and direct expenses were $2,550 and $119,
respectively, for the quarter ended March 31, 1997, compared to $21,870 and
$291, respectively, during the same period of 1996. The decrease in contribution
was due to the sale of all railcars owned by the Partnership in the fourth
quarter of 1996;
Marine containers: Marine container revenues and direct expenses were $4,486 and
$66, respectively, for the quarter ended March 31, 1997, compared to $6,901 and
$66, respectively, during the same period of 1996. The number of marine
containers owned by the Partnership has been declining due to sales and
dispositions. The result of this declining fleet is a decrease in marine
container contribution.
(B) Indirect expenses related to owned equipment
Total indirect expenses of $57,617 for the quarter ended March 31, 1997,
decreased from $78,278 for the same period of 1996. The variance is explained as
follows:
(a) a $12,328 decrease in depreciation expense reflecting assets sales or
dispositions during the first quarter of 1997 and during 1996;
(b) a $8,438 decrease in general and administrative expenses reflects the
decreased accounting costs and administrative costs related to short-term rental
facilities due to sale of equipment.
(C) Gain on disposition of equipment
For the quarter ended March 31, 1997, the Partnership realized a gain of $31,354
on the disposal of trailers compared to the same period of 1996, where the
Partnership realized a gain of $11,851 on the sale or disposition of trailers
and marine containers.
<PAGE>
(D) Equity in net loss of unconsolidated special purpose entity
Equity in net loss of unconsolidated special purpose entity was $20,867 for the
quarter ended March 31, 1996, and represented the net loss generated from the
Partnership's interest in an entity which owned an aircraft, accounted for under
the equity method. The investment was sold in the third quarter of 1996.
(E) Net Loss
The Partnership generated net loss of $5,119 for the quarter ended March 31,
1997, compared to a net loss of $15,826 for the same period in 1996. 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 for the quarter
ended March 31, 1997, is not necessarily indicative of future periods. For the
quarter ended March 31, 1997, the Partnership distributed $344,582 to the
Limited Partners, or approximately $19.74 per weighted average unit which
included a special distribution of $17.01 per weighted average unit.
TEP IXC
(A) Owned equipment operations
Revenues less direct expenses (defined as repairs and maintenance and asset
specific insurance expenses) on owned equipment decreased for the quarter ended
March 31, 1997 when compared to the same period of 1996. The following table
presents revenues less direct expenses by owned equipment type:
<TABLE>
<CAPTION>
For the three months
ended March 31,
1997 1996
---------------------------------
<S> <C> <C>
Trailers $ 51,728 $ 71,991
Railcar equipment (2,590 ) (1,400 )
Marine containers 804 1,643
</TABLE>
Trailers: Trailer revenues and direct expenses were $75,172 and $23,444,
respectively, for the quarter ended March 31, 1997, compared to $97,171 and
$25,180, respectively, during the same period of 1996. The decrease of
contribution was due to lower utilization of trailers in the short-term rental
facilities and the disposition of trailers;
Railcar equipment: Railcar revenues and direct expenses were a credit of $2,550
and $40, respectively, for the quarter ended March 31, 1997, compared to $7,800
and $9,200, respectively during the same period of 1996. The decrease in
contribution was due to the sale of all railcars owned by the Partnership in the
fourth quarter of 1996. The credit in revenue in the first quarter of 1997 was
due to a credit given back to a former lessee;
Marine containers: Marine container revenues and direct expenses were $828 and
$24, respectively, for the quarter ended March 31, 1997, compared to $1,667 and
$24, respectively, during the same period of 1996. The number of marine
containers owned by the Partnership has been declining due to sales and
dispositions. The result of this declining fleet is a decrease in marine
container contribution.
(B) Indirect expenses related to owned equipment
Total indirect expenses of $89,611 for the quarter ended March 31, 1997,
decreased from $102,456 for the same period of 1996. The variance is explained
as follows:
(a) a $14,357 decrease in depreciation expense reflecting asset sales
during the first quarter of 1997 and during 1996;
(b) a $5,162 decrease in general and administrative expenses due to lower
accounting costs and administrative costs due to sale of equipment;
(c) a $8,583 increase in bad debt expense due to the General Partner's
evaluation of the collectibility of trade receivables.
(C) Gain on disposition of equipment
For the quarter ended March 31, 1997, the Partnership realized a gain of $49,863
on the sale of trailers, compared to the same period in 1996, when the
Partnership realized a gain of $1,688 on the disposal of a marine container.
(D) Equity in net loss of unconsolidated special purpose entity
Equity in net loss of unconsolidated special purpose entity was $12,550 for the
quarter ended March 31, 1996, and represents the net loss generated from the
Partnership's interest in an entity which owned an aircraft, accounted for under
the equity method. The investment was sold in the second quarter of 1996.
(E) Net Income
The Partnership's net income increased to $12,823 for the quarter ended March
31, 1997, from a net loss of $38,169 in the same period in 1996. 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 for the quarter
ended March 31, 1997, is not necessarily indicative of future periods. For the
quarter ended March 31, 1997, the Partnership distributed $155,447 to the
Limited Partners, or approximately $9.19 per weighted average unit which
included a special distribution of $5.85 per weighted average unit.
TEP IXD
(A) Revenues
Total revenues of $45,100 for the quarter ended March 31, 1997, decreased from
$56,811 for the same period in 1996, due primarily to lower lease revenues and
lower interest and other income in the first quarter of 1997, as compared to the
same period in 1996, offset by a gain on sale of equipment for the first quarter
of 1997, compared to a loss on disposition of equipment in the same period in
1996.
(1) Lease revenues decreased to $19,219 in the first quarter 1997, from $55,242
in the same period in 1996. The following table lists lease revenue earned by
equipment type:
For the three months ended
March 31,
1997 1996
-------------------------------
Trailers $ 11,583 $ 35,873
Marine containers 7,636 19,369
------------------------------
$ 19,219 $ 55,242
==============================
The decline was due primarily to the following:
(a) Trailer revenue decreased $24,290 due primarily to the sale of trailers
during 1996 and in the first quarter of 1997, and lower utilization in
short-term rental facilities operated by an affiliate of the General Partner;
(b) Marine container revenue decreased $11,733 primarily due to the
disposal of marine containers during 1996 and in the first quarter of 1997.
(2) For the quarter ended March 31, 1997, the Partnership realized a gain of
$25,044 on the disposal of marine containers and trailers, as compared to a loss
of $997 on the disposal of marine containers for the quarter ended March 31,
1996.
(B) Expenses
Total expenses of $42,140 for the quarter ended March 31, 1997, decreased from
$62,085 for the same period in 1996. The decrease in 1997 expenses was
attributable primarily to decreases in general and administrative expenses,
repair and maintenance and depreciation expenses, offset by an increase in bad
debt expenses.
(1) Direct operating expenses (defined as repairs and maintenance and insurance)
decreased to $3,151 in the first quarter 1997, from $11,577 in the same period
in 1996. This change resulted primarily from the disposition of equipment.
(2) Indirect operating expenses (defined as depreciation expense, management
fees, bad debt expense, and general and administrative expenses) decreased to
$38,989 in the first quarter 1997, from $50,508 in the same period in 1996. This
change resulted primarily from:
(a) a decrease in general and administrative expense of $10,840 due to
lower accounting costs and administrative costs related to short-term rental
facilities due to sale of equipment;
(b) a decrease in depreciation expense of $4,074, reflecting asset sales or
dispositions during the first quarter of 1997 and during 1996;
(c) an increase of $3,395 in bad debt expense due to the General Partner's
evaluation of the collectibility of trade receivables.
(C) Net Income (loss)
The Partnership incurred a net income of $2,960 in the first quarter 1997,
compared to a net loss of $5,274 in the same period in 1996. The Partnership's
ability to operate or liquidate assets, secure leases, and re-lease those assets
whose leases expire during the duration of the Partnership is subject to many
factors, and the Partnership's performance in the first quarter 1997, is not
necessarily indicative of future periods. In the first quarter 1997, the
Partnership distributed $18,364 to the Limited Partners, or approximately $1.93
per weighted average unit.
(II) Asset Sales
Equipment sales and dispositions result from General Partner decisions on
liquidations, 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.
During the three months ended March 31, 1997, a marine container and trailers
owned by TEP IXA were sold for a total of $76,319. Trailers owned by TEP IXB
were sold for a total of $51,000; trailers owned by TEP IXC were sold for
$79,550; and marine containers and trailers owned by TEP IXD were sold or
disposed of for $43,219. As discussed in note 4, the General Partner is actively
marketing the remaining equipment portfolio with the intent of maximizing sale
proceeds.
(III) Market Values
As of March 31, 1997, the General Partner estimated the current fair market
value of each Partnership's equipment portfolio to be approximately : $0.9
million, $0.4 million, $0.9 million and $0.6 million for TEP IXA, TEP IXB, TEP
IXC and TEP IXD, respectively.
(IV) Outlook for the Future
The General Partner intends to continue its strategy of closely matching the
level of cash distributions to that of net operating cash flows. However, as
stated above, the difficulty in predicting market conditions precludes the
General Partner from accurately determining the impact of this strategy on
liquidity. The Partnerships have entered into their liquidation phase and
pursuant to the original operating plan, the Partnerships continue to market
equipment for sale as current lease terms expire.
<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: May 9, 1997 By: /s/ David J. Davis
-------------------
David J. Davis
Vice President and
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 107,814
<SECURITIES> 0
<RECEIVABLES> 34,269
<ALLOWANCES> 29,668
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 1,316,871
<DEPRECIATION> 1,171,746
<TOTAL-ASSETS> 259,552
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 251,010
<TOTAL-LIABILITY-AND-EQUITY> 259,552
<SALES> 0
<TOTAL-REVENUES> 45,100
<CGS> 0
<TOTAL-COSTS> 42,140
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,960
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,960
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,960
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
