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 quarterly period ended September 30, 1997
Commission file number 0-15801
AMERICAN LEASING INVESTORS VIII-B, L.P.
(Exact name of registrant as specified in its charter)
DELAWARE 13-3275939
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
411 West Putnam Avenue, Greenwich, CT 06830
(Address of principal executive offices)
(203) 862-7444
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check 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>
AMERICAN LEASING INVESTORS VIII-B, L.P.
FORM 10-Q - SEPTEMBER 30, 1997
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
BALANCE SHEETS - September 30, 1997 and December 31, 1996
STATEMENTS OF OPERATIONS - For the three months ended September 30, 1997
and 1996 and for the nine months ended September 30, 1997 and 1996
STATEMENT OF PARTNERS' EQUITY - For the nine months ended
September 30, 1997
STATEMENTS OF CASH FLOWS - For the nine months ended
September 30, 1997 and 1996
NOTES TO FINANCIAL STATEMENTS
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
SIGNATURES
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
AMERICAN LEASING INVESTORS VIII-B, L.P.
BALANCE SHEETS
September 30, December 31,
1997 1996
---------- ----------
<S> <C> <C>
ASSETS
Cash and cash equivalents ................................. $ 222,507 $ 201,250
Other receivables and prepaid expenses .................... 88,028 50,633
Leased equipment - net of accumulated depreciation of
$787,030 and $5,531,954 ................................ 23,546 3,161,495
---------- ----------
$ 334,081 $3,413,378
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Liabilities
Accounts payable and accrued expenses ..................... $ 24,341 $ 44,108
Due to affiliates ......................................... 1,709 4,025
Deferred income ........................................... -- 49,800
---------- ----------
Total liabilities .................................. 26,050 97,933
---------- ----------
Commitments and contingencies
Partners' equity
Limited partners' equity (as restated) (20,442 units issued
and outstanding) ....................................... $ 303,961 $3,281,301
General partners' equity (as restated) .................... 4,070 34,144
---------- ----------
Total partners' equity ................................. 308,031 3,315,445
---------- ----------
$ 334,081 $3,413,378
========== ==========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN LEASING INVESTORS VIII-B, L.P.
STATEMENTS OF OPERATIONS
For the three months ended For the nine months ended
September 30, September 30,
----------------------------- -----------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues
Rental ................................................ $ 12,436 $ 229,080 $ 111,178 $ 687,238
Other, principally interest ........................... 3,060 2,775 29,161 8,966
----------- ----------- ----------- -----------
15,496 231,855 140,339 696,204
----------- ----------- ----------- -----------
Costs and expenses
General and administrative ............................ 19,079 18,237 78,426 53,806
Depreciation .......................................... 18,239 142,523 96,142 427,567
Operating ............................................. -- 137 11,795 662
Fees to affiliates .................................... -- 4,582 (1,835) 13,745
Interest .............................................. 249 7,160 -- 34,712
----------- ----------- ----------- -----------
37,567 172,639 184,528 530,492
----------- ----------- ----------- -----------
(22,071) 59,216 (44,189) 165,712
Other income
Gain on disposition of equipment - net ................ -- -- 2,240,193 --
----------- ----------- ----------- -----------
Net income (loss) .......................................... $ (22,071) $ 59,216 $ 2,196,004 $ 165,712
=========== =========== =========== ===========
Net income (loss) attributable to
Limited partners ...................................... $ (21,850) $ 58,624 $ 2,174,044 $ 164,055
General partners ...................................... (221) 592 21,960 1,657
----------- ----------- ----------- -----------
$ (22,071) $ 59,216 $ 2,196,004 $ 165,712
=========== =========== =========== ===========
Net income (loss) per unit of limited partnership
interest (20,442 units outstanding) ................... $ (1.07) $ 2.87 $ 106.35 $ 8.03
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN LEASING INVESTORS VIII-B, L.P.
STATEMENT OF PARTNERS' EQUITY
Limited General Total
Partners' Partners' Partners'
Equity Equity Equity
----------- ----------- -----------
<S> <C> <C> <C>
Balance, January 1, 1997 ...................................... $ 3,383,511 $ (68,066) $ 3,315,445
Reallocation of partners' equity .............................. (102,210) 102,210 --
----------- ----------- -----------
Balance, January 1, 1997 (as restated) ........................ 3,281,301 34,144 3,315,445
Distributions paid for the
nine months ended September 30, 1997
($252 per limited partnership unit) ...................... (5,151,384) (52,034) (5,203,418)
Net income for the nine months
ended September 30, 1997 ................................. 2,174,044 21,960 2,196,004
----------- ----------- -----------
Balance, September 30, 1997 ................................... $ 303,961 $ 4,070 $ 308,031
=========== =========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN LEASING INVESTORS VIII-B, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended
September 30,
--------------------------
1997 1996
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities
Net income ............................................... $ 2,196,004 $ 165,712
Adjustments to reconcile net income to net
cash (used in) provided by operating activities
Depreciation ...................................... 96,142 427,567
Gain on disposition of equipment - net ............ (2,240,193) --
Changes in assets and liabilities
Accounts receivable ................................... -- (37,306)
Other receivables and prepaid expenses ................ (37,395) 716
Accounts payable and accrued expenses ................. (19,767) (18,963)
Due to affiliates ..................................... (2,316) (1,721)
Deferred income ....................................... (49,800) --
Accrued interest payable .............................. -- (1,321)
----------- -----------
Net cash (used in) provided by operating activities (57,325) 534,684
----------- -----------
Cash flows from investing activities
Proceeds from disposition of equipment - net ............. 5,282,000 --
----------- -----------
Cash flows from financing activities
Distributions to partners ................................ (5,203,418) (41,297)
Principal payments of notes payable ...................... -- (586,835)
----------- -----------
Net cash used in financing activities ............. (5,203,418) (628,132)
----------- -----------
Net increase (decrease) in cash and cash equivalents 21,257 (93,448)
Cash and cash equivalents, beginning of period 201,250 302,679
----------- -----------
Cash and cash equivalents, end of period ...................... $ 222,507 $ 209,231
=========== ===========
Supplemental disclosure of cash flow information
Interest paid ............................................ $ -- $ 36,033
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
AMERICAN LEASING INVESTORS VIII-B, L.P.
NOTES TO FINANCIAL STATEMENTS
1 INTERIM FINANCIAL INFORMATION
The summarized financial information contained herein is unaudited;
however, in the opinion of management, all adjustments (consisting only
of normal recurring accruals) necessary for a fair presentation of such
financial information have been included. The accompanying financial
statements, footnotes and discussions should be read in conjunction
with the financial statements, related footnotes and discussions
contained in the American Leasing Investors VIII-B, L.P. (the
"Partnership") annual report on Form 10-K for the year ended December
31, 1996. The results of operations for the nine months ended September
30, 1997 are not necessarily indicative of the results to be expected
for the full year.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Leased equipment
The cost of leased equipment represents the initial cost of the
equipment to the Partnership plus miscellaneous acquisition and closing
costs, and is carried at the lower of depreciated cost or net
realizable value.
Depreciation is computed using the straight-line method over the
estimated useful lives of such assets (15 years for transportation
equipment and 10 years for packaging line equipment).
When equipment is sold or otherwise disposed of, the cost and
accumulated depreciation (and any related allowance for equipment
impairment) are removed from the accounts and any gain or loss on such
sale or disposal is reflected in operations. Normal maintenance and
repairs are charged to operations as incurred. The Partnership provides
allowances for equipment impairment based upon a quarterly review of
all equipment in its portfolio, when management believes that, based
upon market analysis, appraisal reports and leases currently in place
with respect to specific equipment, the investment in such equipment
may not be recoverable.
<PAGE>
Recently issued accounting pronouncements
The Financial Accounting Standards Board has recently issued several
new accounting pronouncements. Statement No. 128, "Earnings per Share"
establishes standards for computing and presenting earnings per share,
and is effective for financial statements for both interim and annual
periods ending after December 15, 1997. Statement No. 129, "Disclosure
of Information about Capital Structure" establishes standards for
disclosing information about an entity's capital structure, and is
effective for financial statements for periods ending after December
15, 1997. Statement No. 130, "Reporting Comprehensive Income"
establishes standards for reporting and display of comprehensive income
and its components, and is effective for fiscal years beginning after
December 15, 1997. Statement No. 131, "Disclosures about Segments of an
Enterprise and Related Information" establishes standards for the way
that public business enterprises report information about operating
segments in annual financial statements and requires that those
enterprises report selected information about operating segments in
interim financial reports issued to shareholders. It also establishes
standards for related disclosures about products and services,
geographic areas, and major customers, and is effective for financial
statements for periods beginning after December 15, 1997.
Management of the Company does not believe that these new standards
will have a material effect on the Company's reported operating
results, per share amounts, financial position or cash flows.
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES
The corporate general partner of the Partnership, ALI Capital Corp.
(the "Corporate General Partner"), the managing general partner of the
Partnership, ALI Equipment Management Corp. ("Equipment Management")
and Integrated Resources Equipment Group, Inc. ("IREG") are wholly
owned subsidiaries of Presidio Capital Corp. ("Presidio"). Presidio
Boram Corp., a subsidiary of Presidio, is the associate general
partner. Other limited partnerships and similar investment programs
have been formed by Equipment Management or its affiliates to acquire
equipment and, accordingly, conflicts of interest may arise between the
Partnership and such other limited partnerships. Affiliates of
Equipment Management have also engaged in businesses related to the
management of equipment and the sale of various types of equipment and
may transact business with the Partnership.
<PAGE>
Subject to the rights of the Limited Partners under the Limited
Partnership Agreement, Presidio will control the Partnership through
its direct or indirect ownership of all of the shares of Equipment
Management, the Corporate General Partner and the associate general
partner. On November 2, 1997, the Administrative Services Agreement
between Presidio and Wexford Management LLC ("Wexford"), the
administrator for Presidio, expired. Pursuant to that agreement Wexford
had authority to designate directors of Equipment Management, the
Corporate General Partner and the associate general partner. Effective
November 3, 1997, Wexford and Presidio entered into a new
Administrative Services Agreement, dated as of November 3, 1997 (the
"ASA") which expires on May 3, 1998. Under the terms of the ASA,
Wexford will provide consulting and administrative services to Presidio
and its affiliates, including Equipment Management, the Corporate
General Partner, the associate general partner and the Partnership, for
a term of six months. During the nine months ended September 30, 1997
and 1996, reimbursable expenses due to Wexford from the Partnership
amounted to $12,569 and $18,391, respectively.
Effective November 3, 1997, officers and employees of Wexford that had
served as officers and/or directors of Equipment Management, the
Corporate General Partner and the Associate General Partner tendered
their resignation. On the same date, the Board of Directors appointed
new individuals to serve as officers and/or directors of Equipment
Management, the Corporate General Partner and the Associate General
Partner.
The Partnership has a management agreement with IREG, pursuant to which
IREG receives 5% of annual gross rental revenues on operating leases;
2% of annual gross rental revenues on full payout leases which contain
net lease provisions; and 1% of annual gross rental revenues, if
services are performed by third parties under the active supervision of
IREG, as defined in the Limited Partnership Agreement. The Partnership
incurred equipment management fees of ($1,835) and $13,745 for the nine
months ended September 30, 1997 and 1996, respectively.
During the operating and sale stage of the Partnership, IREG is
entitled to a partnership management fee equal to 4% of distributable
cash from operations, as defined in the Limited Partnership Agreement,
subject to increase after the limited partners have received certain
specified minimum returns on their investment. No partnership
management fees were incurred for the nine months ended September 30,
1997 and 1996.
The general partners are entitled to 1% of distributable cash from
operations and cash from sales and an allocation of 1% of taxable net
income or loss of the Partnership.
During the operating and sale stage of the Partnership, IREG may be
entitled to receive certain other fees which are subordinated to the
receipt by the limited partners of their original invested capital and
certain specified minimum returns on their investment.
<PAGE>
Upon the ultimate liquidation of the Partnership, the general partners
may be required to remit to the Partnership certain payments
representing capital account deficit restoration based upon a formula
provided within the Limited Partnership Agreement. Such restoration
amount may be less than the recorded general partners' deficit, which
could result in distributions to the limited partners of less than
their recorded equity.
In April 1995, Equipment Management and certain affiliates entered into
an agreement with Fieldstone Private Capital Group, L.P. ("Fieldstone")
pursuant to which Fieldstone performs certain management and
administrative services relating to the Partnership as well as certain
other partnerships in which Equipment Management serves as general
partner. Substantially all costs associated with the retention of
Fieldstone, other than legal fees, are paid by Equipment Management.
The agreement with Fieldstone was scheduled to terminate November 3,
1997. Equipment Management and certain affiliates are currently
negotiating a possible extension of the agreement. Fieldstone has
indicated that it will continue to perform services in respect of the
Partnership pending the conclusion of such negotiation.
4 PARTNERS' EQUITY
The General Partners hold a 1% equity interest in the Partnership. At
the inception of the Partnership, the General Partners' equity account
was credited with only the actual capital contributed in cash, $1,000.
The Partnership's management determined that this accounting does not
appropriately reflect the limited partners' and the General Partners'
relative participations in the Partnership's net assets, since it does
not reflect the General Partners' 1% equity interest in the
Partnership. Thus, the Partnership has restated its financial
statements to reallocate $102,210 (1% of the gross proceeds raised at
the Partnership's formation) of the partners' equity to the General
Partners' equity account. This reallocation was made as of the
inception of the Partnership and all periods presented in the financial
statements have been restated to reflect the reallocation. The
reallocation has no impact on the Partnership's financial position,
results of operations, cash flows, distributions to partners, or the
partners' tax basis capital accounts.
5 EQUIPMENT SALE
On January 21, 1997, the lease of the British Aerospace HS 125-800A
aircraft (the "DuPont Aircraft") owned by the Partnership, expired in
accordance with its original terms. The associated debt was repaid upon
the receipt of the final rental installment. The lessee continued to
utilize the DuPont Aircraft, with the Partnership's consent, until
January 31, 1997 at which time the DuPont Aircraft was made available
for its return inspection. On April 16, 1997, the Partnership sold the
DuPont Aircraft to an unaffiliated third party for a purchase price of
$5,400,000, exclusive of selling expenses of approximately $118,000. At
the time of sale, the DuPont Aircraft had a net carrying value of
approximately $3,041,800.
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The General Partners hold a 1% equity interest in the Partnership. At
the inception of the Partnership, the General Partners' equity account
was credited with only the actual capital contributed in cash, $1,000.
The Partnership's management determined that this accounting does not
appropriately reflect the limited partners' and the General Partners'
relative participations in the Partnership's net assets, since it does
not reflect the General Partners' 1% equity interest in the
Partnership. Thus, the Partnership has restated its financial
statements to reallocate $102,210 (1% of the gross proceeds raised at
the Partnership's formation) of the partners' equity to the General
Partners' equity account. This reallocation was made as of the
inception of the Partnership and all periods presented in the financial
statements have been restated to reflect the reallocation. The
reallocation has no impact on the Partnership's financial position,
results of operations, cash flows, distributions to partners, or the
partners' tax basis capital accounts.
As of September 30, 1997, the Partnership had operating reserves of
approximately $284,000 which was comprised of undistributed cash from
operations and sales of approximately $182,000 as well as the general
working capital reserve of approximately $102,000. On April 16, 1997,
the Partnership sold one of its two remaining assets, a British
Aerospace HS 125-800A aircraft (the "DuPont Aircraft"), and generated
net proceeds of approximately $5,282,000 in connection with the sale.
The Partnership distributed the net proceeds of the sale, less any
amounts required as reserves, of $252 per Unit in May 1997. The
Partnership's sole remaining asset, packaging line equipment (the
"Packaging Line Equipment") leased to Xerox Corporation ("Xerox"), is
not currently generating any revenue and is the subject of litigation
described in Part II, Item 1. The Partnership does not anticipate that
it will make any additional distributions until it disposes of the
Packaging Line Equipment and resolves the issues associated with the
litigation.
The Partnership had no outstanding material commitments for capital
expenditures as of September 30, 1997.
Inflation and changing prices have not had any material effect on the
Partnership's revenues since its inception nor does the Partnership
anticipate any material effect on its business from these factors.
<PAGE>
Set forth below is a description of various transactions which have
impacted the liquidity of the Partnership during 1997 and 1996:
(i) In early July 1994, upon the receipt of the final rental
installment during the initial lease term associated with the
Packaging Line Equipment, the associated nonrecourse debt was
repaid. Xerox, the lessee of the Packaging Line Equipment,
exercised its right to renew the lease through December 1995, in
accordance with its "Fair Market Rental Value" renewal option at
a fair market rental rate equal to approximately 42% of the
original rent. Since January 1, 1996, the Partnership and Xerox
have attempted to reach agreement for either a lease extension or
a sale of the Packaging Line Equipment. Notwithstanding the
absence of an agreement on a lease extension, and without the
consent of the Partnership, Xerox continued to utilize the
Packaging Line Equipment while failing to pay any rent. The
Partnership and Xerox were unable to reach an agreement and, on
April 17, 1997, the Partnership commenced an action against Xerox
which is described in Part II, Item 1. The Packaging Line
Equipment had a net carrying value of $23,546 and $78,259 at
September 30, 1997 and December 31, 1996, respectively.
(ii) On January 21, 1997, the lease of the DuPont Aircraft owned by
the Partnership expired in accordance with its original terms.
The associated debt was repaid upon the receipt of the final
rental installment. The lessee continued to utilize the DuPont
Aircraft, with the Partnership's consent, until January 31, 1997
at which time the DuPont Aircraft was made available for its
return inspection. On April 16, 1997, the Partnership sold the
DuPont Aircraft to an unaffiliated third party for a purchase
price of $5,400,000, exclusive of selling expenses of
approximately $118,000. At the time of sale, the DuPont Aircraft
had a net carrying value of approximately $3,041,800.
In April 1995, the managing general partner of the Partnership, ALI
Equipment Management Corp. ("Equipment Management"), and certain
affiliates entered into an agreement with Fieldstone Private Capital
Group, L.P. ("Fieldstone") pursuant to which Fieldstone performs
certain management and administrative services relating to the
Partnership as well as certain other partnerships in which Equipment
Management serves as general partner. Substantially all costs
associated with the retention of Fieldstone, other than legal fees, are
paid by Equipment Management. The agreement with Fieldstone was
scheduled to terminate November 3, 1997. Equipment Management and
certain affiliates are currently negotiating a possible extension of
the agreement. Fieldstone has indicated that it will continue to
perform services in respect of the Partnership pending the conclusion
of such negotiation.
<PAGE>
Results of Operations
The Partnership recognized a loss of approximately $22,000 for the
quarter ended September 1997 and $44,000 for the nine months ended
September 1997 as compared to the corresponding periods of the prior
year, before gain on disposition of equipment of approximately
$2,240,000 in April 1997.
Revenue decreased for the quarter and nine months ended September 30,
1997, as compared to the corresponding periods of the prior year,
primarily due to the expiration of the lease of DuPont Aircraft on
January 21, 1997. This was partially offset by the interest earned on
the proceeds generated from the sale of the DuPont Aircraft available
for the short term investment.
Expenses decreased for the quarter and nine months ended September 30,
1997, as compared to the corresponding periods of the prior year due
to: (i) less depreciation in the current periods on the DuPont Aircraft
sold on April 16, 1997, (ii) reduced interest due to the repayment of
debt associated with the DuPont Aircraft in January 1997, (iii) lower
equipment management fees due to reduced rental on which such fee is
based, (iv) offset by the increase in nine months ended September 30,
1997 in legal and operating expenses related to the DuPont Aircraft.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
On June 30, 1994, the Partnership's lease of certain packaging line equipment
(the "Packaging Line Equipment") with Xerox Corporation ("Xerox") was scheduled
to expire in accordance with the original lease terms (the "Xerox Lease"). Upon
receipt of the final rental installment due under the Xerox Lease the associated
nonrecourse debt was repaid.
In late 1993, Xerox had notified the Partnership of its intent to exercise its
right to extend the Xerox Lease and Xerox and the Partnership commenced
negotiations to determine the fair market rental value of the Packaging Line
Equipment. Pursuant to the terms of the Xerox Lease, Xerox had the right to
elect to extend the Xerox Lease for two consecutive periods of one year each. In
October 1995, the Partnerships and Xerox agreed upon a lease rate for an
eighteen month lease renewal which expired on December 31, 1995.
Since January 1, 1996, the Partnership and Xerox have attempted to reach
agreement for either a lease extension or a sale of the Packaging Line
Equipment. Notwithstanding the absence of an agreement on a lease extension, and
without the consent of the Partnership, Xerox continued to utilize the Packaging
Line Equipment while failing to pay any rent. The Partnership and Xerox were
unable to reach an agreement and, on April 17, 1997, the Partnership commenced
an action against Xerox in the Supreme Court of the State of New York, County of
New York, seeking compensation and punitive damages relating to Xerox's
retention of the Packaging Line Equipment.
On June 19, 1997, Xerox responded to the Partnership's complaint by bringing a
motion to compel appraisal and to stay the proceedings during such appraisal
process; the Partnership contested such motion. On October 14, 1997, the Court
ordered Xerox and the Partnership each to appoint an appraiser, both of whom are
to be paid by Xerox, and to have the appraisers determine the fair market value
rental and purchase price from the litigants' differing points of view.
Additionally, pursuant to the Court's order, both sides are now actively engaged
in discovery while the appraisers are proceeding with their evaluations.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None.
(b) Reports on Form 8-K: Current reports on Form 8-K dated July 25, 1997
and August 28, 1997.
<PAGE>
SIGNATURES
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.
AMERICAN LEASING INVESTORS VIII-B, L.P.
By: ALI Equipment Management Corp.
Managing General Partner
/s/ Richard Sabella
----------------------------------------
Richard Sabella
President
/s/ Kevin Reardon
----------------------------------------
Kevin Reardon
Vice President, Treasurer and Secretary
(Chief Accounting Officer)
Date: November 19, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE FINANCIAL
STATEMENTS OF THE SEPTEMBER 30, 1997 FORM 10-Q OF AMERICAN LEASING INVESTORS
VIII-B AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 222,507
<SECURITIES> 0
<RECEIVABLES> 88,028
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 310,535
<PP&E> 810,576
<DEPRECIATION> 787,030
<TOTAL-ASSETS> 334,081
<CURRENT-LIABILITIES> 26,050
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 308,031
<TOTAL-LIABILITY-AND-EQUITY> 334,081
<SALES> 0
<TOTAL-REVENUES> 2,380,532
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 184,528
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,196,004
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,196,004
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,196,004
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
