<PAGE> 1
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
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________TO _______
Commission file number 0-16834
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
(Exact name of registrant as specified in its charter)
California 94-2966976
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
444 Market Street, 15th Floor, San Francisco, California 94111
(Address of principal executive offices) (Zip Code)
(415) 677-8990
(Registrant's telephone number, including area code)
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> 2
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
REPORT ON FORM 10-Q FOR THE QUARTERLY
PERIOD ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - September 30, 1997 (unaudited) and December 31,
1996 4
Statements of Operations for the three and nine months ended
September 30, 1997 and 1996 (unaudited) 5
Statements of Cash Flows for the nine months ended September 30,
1997 and 1996 (unaudited) 6
Notes to Financial Statements (unaudited) 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 10
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Presented herein are the Registrant's balance sheets as of September
30, 1997 and December 31, 1996, statements of operations for the three
and nine months ended September 30, 1997 and 1996, and statements of
cash flows for the nine months ended September 30, 1997 and 1996.
3
<PAGE> 4
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
---------- ----------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents, includes $212,078 at September 30, 1997
and $330,894 at December 31, 1996 in interest-bearing accounts $ 330,966 $ 331,167
Net lease receivables due from Leasing Company
(notes 1 and 2) 106,561 126,589
---------- ----------
Total current assets 437,527 457,756
---------- ----------
Container rental equipment, at cost 4,361,934 4,666,319
Less accumulated depreciation 2,435,439 2,414,262
---------- ----------
Net container rental equipment 1,926,495 2,252,057
---------- ----------
$2,364,022 $2,709,813
========== ==========
Partners' Capital
Partners' capital:
General partners $ 13,493 $ 9,390
Limited partners 2,350,529 2,700,423
---------- ----------
Total partners' capital 2,364,022 2,709,813
---------- ----------
$2,364,022 $2,709,813
========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
----------------------------- ----------------------------
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net lease revenue (notes 1 and 3) $121,550 $151,376 $355,780 $486,025
Other operating expenses:
Depreciation 61,956 67,336 192,191 205,373
Other general and administrative expenses 6,966 6,267 19,428 15,344
-------- -------- -------- --------
68,922 73,603 211,619 220,717
-------- -------- -------- --------
Earnings from operations 52,628 77,773 144,161 265,308
Other income:
Interest income 2,925 4,345 9,074 12,664
Net gain on disposal of equipment 23,812 18,911 54,006 51,152
-------- -------- -------- --------
26,737 23,256 63,080 63,816
-------- -------- -------- --------
Net earnings $ 79,365 $101,029 $207,241 $329,124
======== ======== ======== ========
Allocation of net earnings:
General partners $ 20,719 $ 20,831 $ 59,407 $ 69,248
Limited partners 58,646 80,198 147,834 259,876
-------- -------- -------- --------
$ 79,365 $101,029 $207,241 $329,124
======== ======== ======== ========
Limited partners' per unit share of net earnings $ 6.29 $ 8.61 $ 15.87 $ 27.90
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------------------
September 30, September 30,
1997 1996
------------- ------------
<S> <C> <C>
Net cash provided by operating activities $ 386,248 $ 509,542
Cash flows provided by investing activities:
Proceeds from disposal of equipment 166,583 117,319
Cash flows used in financing activities:
Distribution to partners (553,032) (653,288)
------- -------
Net decrease in cash and cash equivalents (201) (26,427)
Cash and cash equivalents at January 1 331,167 383,705
------- -------
Cash and cash equivalents at September 30 $ 330,966 $ 357,278
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) Summary of Significant Accounting Policies
(a) Nature of Operations
IEA Income Fund VII, A California Limited Partnership (the
"Partnership") was organized under the laws of the State of California
on June 27, 1985 for the purpose of owning and leasing marine cargo
containers. The managing general partner is Cronos Capital Corp.
("CCC"); the associate general partners include seven individuals, one
is an officer of CCC. CCC, with its affiliate Cronos Containers Limited
(the "Leasing Company"), manages the business of the Partnership. The
Partnership shall continue until December 31, 2007, unless sooner
terminated upon the occurrence of certain events.
The Partnership commenced operations on February 2, 1987, when the
minimum subscription proceeds of $1,000,000 were obtained. The
Partnership offered 40,000 units of limited partnership interest at
$500 per unit, or $20,000,000. The offering terminated on August 31,
1987, at which time 9,314 limited partnership units had been purchased.
As of September 30, 1997, the Partnership owned and operated 854
twenty-foot and 888 forty-foot marine dry cargo containers.
(b) Leasing Company and Leasing Agent Agreement
Pursuant to the Limited Partnership Agreement of the Partnership, all
authority to administer the business of the Partnership is vested in
CCC. CCC has entered into a Leasing Agent Agreement whereby the Leasing
Company has the responsibility to manage the leasing operations of all
equipment owned by the Partnership. Pursuant to the Agreement, the
Leasing Company is responsible for leasing, managing and re-leasing the
Partnership's containers to ocean carriers and has full discretion over
which ocean carriers and suppliers of goods and services it may deal
with. The Leasing Agent Agreement permits the Leasing Company to use
the containers owned by the Partnership, together with other containers
owned or managed by the Leasing Company and its affiliates, as part of
a single fleet operated without regard to ownership. Since the Leasing
Agent Agreement meets the definition of an operating lease in Statement
of Financial Accounting Standards (SFAS) No. 13, it is accounted for as
a lease under which the Partnership is lessor and the Leasing Company
is lessee.
The Leasing Agent Agreement generally provides that the Leasing Company
will make payments to the Partnership based upon rentals collected from
ocean carriers after deducting direct operating expenses and management
fees to CCC. The Leasing Company leases containers to ocean carriers,
generally under operating leases which are either master leases or term
leases (mostly two to five years). Master leases do not specify the
exact number of containers to be leased or the term that each container
will remain on hire but allow the ocean carrier to pick up and drop off
containers at various locations; rentals are based upon the number of
containers used and the applicable per-diem rate. Accordingly, rentals
under master leases are all variable and contingent upon the number of
containers used. Most containers are leased to ocean carriers under
master leases; leasing agreements with fixed payment terms are not
material to the financial statements. Since there are no material
minimum lease rentals, no disclosure of minimum lease rentals is
provided in these financial statements.
(Continued)
7
<PAGE> 8
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(c) Basis of Accounting
The Partnership utilizes the accrual method of accounting. Net lease
revenue is recorded by the Partnership in each period based upon its
leasing agent agreement with the Leasing Company. Net lease revenue is
generally dependent upon operating lease rentals from operating lease
agreements between the Leasing Company and its various lessees, less
direct operating expenses and management fees due in respect of the
containers specified in each operating lease agreement.
(d) Financial Statement Presentation
These financial statements have been prepared without audit. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
procedures have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and
accompanying notes in the Partnership's latest annual report on Form
10-K.
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires the Partnership to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reported period. Actual results could
differ from those estimates.
The interim financial statements presented herewith reflect all
adjustments of a normal recurring nature which are, in the opinion of
management, necessary to a fair statement of the financial condition
and results of operations for the interim periods presented.
(2) Net Lease Receivables Due from Leasing Company
Net lease receivables due from the Leasing Company are determined by
deducting direct operating payables and accrued expenses, base management
fees payable, reimbursed administrative expenses, and incentive fees
payable to CCC and its affiliates from the rental billings payable by the
Leasing Company to the Partnership under operating leases to ocean carriers
for the containers owned by the Partnership. Net lease receivables at
September 30, 1997 and December 31, 1996 were as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
-------- --------
<S> <C> <C>
Lease receivables, net of doubtful accounts
of $89,614 at September 30, 1997 and $87,523
at December 31, 1996 $259,197 $287,953
Less:
Direct operating payables and accrued expenses 77,162 67,041
Damage protection reserve 24,983 40,733
Base management fees 23,644 26,630
Reimbursed administrative expenses 4,208 4,681
Incentive fees 22,639 22,279
-------- --------
$106,561 $126,589
======== ========
</TABLE>
(Continued)
8
<PAGE> 9
IEA INCOME FUND VII,
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(3) Net Lease Revenue
Net lease revenue is determined by deducting direct operating expenses,
base management and incentive fees and reimbursed administrative expenses
to CCC from the rental revenue billed by the Leasing Company under
operating leases to ocean carriers for the containers owned by the
Partnership. Net lease revenue for the three and nine-month periods ended
September 30, 1997 and 1996, was as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
--------------------------- ----------------------------
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Rental revenue $225,696 $282,936 $697,624 $902,021
Less:
Rental equipment operating expenses 53,297 71,150 192,917 236,474
Base management fees 15,624 19,439 48,274 60,182
Reimbursed administrative expenses 12,587 16,895 38,846 51,784
Incentive fees 22,638 24,076 61,807 67,556
-------- -------- -------- --------
$121,550 $151,376 $355,780 $486,025
======== ======== ======== ========
</TABLE>
9
<PAGE> 10
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
It is suggested that the following discussion be read in conjunction with the
Registrant's most recent annual report on Form 10-K.
1) Material changes in financial condition between September 30, 1997 and
December 31, 1996.
During the first nine months of 1997, the Registrant disposed of 126
containers as part of its ongoing operations. At September 30, 1997, 83% of
the original equipment remained in the Registrant's fleet, as compared to
89% at December 31, 1996, and was comprised of the following:
<TABLE>
<CAPTION>
20-Foot 40-Foot
------- -------
<S> <C> <C>
Containers on lease:
Term leases 65 104
Master lease 628 642
--- ---
Subtotal 693 746
Containers off lease 161 142
--- ---
Total container fleet 854 888
=== ===
</TABLE>
<TABLE>
<CAPTION>
20-Foot 40-Foot
------- -------
Units % Units %
----- ---- ----- ----
<S> <C> <C> <C> <C>
Total purchases 1,001 100% 1,104 100%
Less disposals 147 15% 216 20%
----- --- ----- ----
Remaining fleet at September 30, 1997 854 85% 888 80%
===== === ===== ====
</TABLE>
During the third quarter of 1997, distributions from operations and sales
proceeds amounted to $184,344, reflecting distributions to the general and
limited partners for the second quarter of 1997. This represents an
increase from the $168,174 distributed during the second quarter of 1997,
reflecting distributions for the first quarter of 1997. The increase in
distributions is attributable to an increase in sales proceeds distributed
to its partners. The Registrant's disposal activity should produce lower
operating results and, consequently, lower distributions from operations to
its partners in subsequent periods. Sales proceeds distributed to its
partners may fluctuate in subsequent periods, reflecting the level of
container disposals.
During 1996, ocean carriers and other transport companies moved away
from leasing containers outright, as declining container prices, favorable
interest rates and the abundance of available capital resulted in ocean
carriers and transport companies purchasing a larger share of equipment for
their own account, reducing their need for leased containers. Once the
demand for leased containers began to fall, per-diem rental rates were also
adversely affected. Since the beginning of 1997, the container leasing
industry has experienced a modest recovery as indicated by an upward trend
in container utilization. This trend can also be seen within the
Registrant's utilization rate, which increased from 73% at December 31,
1996 to 83% at September 30, 1997. Increasing cargo volumes and continuing
equipment imbalances within the container fleets of shipping lines and
transport companies have re-established a need for these companies to
replenish their leased fleets during 1997.
10
<PAGE> 11
Although there has been an improvement in container utilization rates,
per-diem rental rates continue to remain under pressure as a result of the
following factors: start-up leasing companies offering new containers and
low rental rates in an effort to break into the leasing market; established
leasing companies reducing rates to very low levels; and a continuing
oversupply of containers. The recent volatility of the Hong Kong and other
Asian financial markets and its impact on trade, shipping, and container
leasing, especially intra-Asia and Asia-Europe routes, has yet to be
determined. While these conditions could impact the Registrant's financial
condition and operating performance through the remainder of 1997 and first
half of 1998, the Registrant is well positioned to take advantage of
further improvements in the container leasing market.
2) Material changes in the results of operations between the three and
nine-month periods ended September 30, 1997 and the three and nine-month
periods ended September 30, 1996.
Net lease revenue for the three and nine-month periods ended September 30,
1997 was $121,550 and $355,780, respectively, a decline of approximately
20% and 27%, respectively, from the same three and nine-month periods in
the prior year. Approximately 30% and 26% of the Registrant's net earnings
for the three and nine-month periods ended September 30, 1997,
respectively, were from gain on disposal of equipment, as compared to 19%
and 16%, respectively, for the same three and nine-month periods in the
prior year. As the Registrant's container disposals increase in subsequent
periods, net gain on disposal should contribute significantly to the
Registrant's net earnings and may fluctuate dependent on the level of
container disposals.
Gross rental revenue (a component of net lease revenue) for the three and
nine-month periods ended September 30, 1997 was $225,696 and $697,624,
respectively, reflecting a decline of 20% and 23%, respectively, from the
same three and nine-month periods in 1996. During 1997, gross rental
revenue was primarily impacted by the Registrant's fleet size and a decline
in per-diem rental rates. Average per-diem rental rates decreased
approximately 14% and 13%, respectively, when compared to the same three
and nine-month periods in the prior year. Utilization of the Registrant's
fleet of containers, which steadily increased since December 31, 1996, did
not recover to the same level averaged during the nine-month period ended
September 30, 1996. The Registrant's average fleet size and utilization
rates for the three and nine-month periods ended September 30, 1997 and
September 30, 1996 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
---------------------------- ---------------------------
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
------------ ------------ ----------- -------------
<S> <C> <C> <C> <C>
Average Fleet Size (measured in
twenty-foot equivalent units (TEU)) 2,659 2,888 2,748 2,940
Average Utilization 79% 78% 76% 79%
</TABLE>
The Registrant's declining fleet size contributed to a respective 8% and 6%
decline in depreciation expense when compared to the same three and
nine-month periods in the prior year. Rental equipment operating expenses
were 24% and 28%, respectively, of the Registrant's gross lease revenue
during the three and nine-month periods ended September 30, 1997, as
compared to 25% and 26%, respectively, during the three and nine-month
periods ended September 30, 1996. Lower repair and maintenance expenses, as
well as a decline in the provision for doubtful accounts were partially
off-set by increases in costs associated with slightly lower utilization
levels, including storage and handling.
11
<PAGE> 12
As reported in the Registrant's Current Report on Form 8-K and Amendment
No. 1 to Current Report on Form 8-K, filed with the Commission on February
7, 1997 and February 26, 1997, respectively, Arthur Andersen, London,
England, resigned as auditors of The Cronos Group, a Luxembourg Corporation
headquartered in Orchard Lea, England (the "Parent Company"), on February
3, 1997.
The Parent Company is the indirect corporate parent of Cronos Capital
Corp., the managing general partner of the Registrant. In its letter of
resignation to the Parent Company, Arthur Andersen states that it resigned
as auditors of the Parent Company and all other entities affiliated with
the Parent Company. While its letter of resignation was not addressed to
the managing general partner or the Registrant, Arthur Andersen confirmed
to the managing general partner that its resignation as auditors of the
entities referred to in its letter of resignation included its resignation
as auditors of Cronos Capital Corp. and the Registrant. Following Arthur
Andersen's resignation, the Parent Company subsequently received
notification from the Securities and Exchange Commission that it was
conducting a private investigation of the Parent Company regarding the
events and circumstances leading to Arthur Andersen's resignation. The
results of this investigation are still pending. Accordingly, the
Registrant does not, at this time, have sufficient information to determine
the impact, if any, that the Securities and Exchange Commission
investigation of the Parent Company and the concerns expressed by Arthur
Andersen in its letter of resignation may have on the future operating
results and financial condition of the Registrant or the Leasing Company's
ability to manage the Registrant's fleet in subsequent periods. However,
the managing general partner of the Registrant does not believe, based upon
the information currently available to it, that Arthur Andersen's
resignation was triggered by any concern over the accounting policies and
procedures followed by the Registrant.
Arthur Andersen's report on the financial statements of Cronos Capital
Corp. and the Registrant, for either of the previous two years, has not
contained an adverse opinion or a disclaimer of opinion, nor was any such
report qualified or modified as to uncertainty, audit scope, or accounting
principles. During the Registrant's previous two fiscal years and the
subsequent interim period preceding Arthur Andersen's resignation, there
have been no disagreements between Cronos Capital Corp. or the Registrant
and Arthur Andersen on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure.
The Registrant retained a new auditor, Moore Stephens, P.C. ("Moore
Stephens") on April 10, 1997, as reported in the Registrant's Current
Report on Form 8-K, filed April 14, 1997.
The President of the Leasing Company, a subsidiary of the Parent Company,
along with two marketing Vice Presidents, resigned in June 1997. These
vacancies were filled by qualified, long-time employees who average over 15
years of experience in the container leasing industry, therefore providing
continuity in the management of the Leasing Company. The Registrant and
managing general partner do not believe these changes will have a material
impact on the future operating results and financial condition of the
Registrant.
Cautionary Statement
This Quarterly Report on Form 10-Q contains statements relating to future
results of the Registrant, including certain projections and business
trends, that are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to changes in: economic
conditions; trade policies; demand for and market acceptance of leased
marine cargo containers; competitive utilization and per-diem rental rate
pressures; as well as other risks and uncertainties, including but not
limited to those described in the above discussion of the marine container
leasing business under Item 2., Management's Discussion and Analysis of
Financial Condition and Results of Operations; and those detailed from time
to time in the filings of Registrant with the Securities and Exchange
Commission.
12
<PAGE> 13
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit
No. Description Method of Filing
--- ----------- ----------------
<S> <C> <C>
3(a) Limited Partnership Agreement of the Registrant, *
amended and restated as of December 1, 1986
3(b) Certificate of Limited Partnership of the Registrant **
27 Financial Data Schedule Filed with this document
</TABLE>
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant during the quarter
ended September 30, 1997.
- -------------
* Incorporated by reference to Exhibit "A" to the Prospectus of the
Registrant dated December 3, 1986, included as part of Registration
Statement on Form S-1 (No. 33-9351)
** Incorporated by reference to Exhibit 3.2 to the Registration Statement
on Form S-1 (No. 33-9351)
13
<PAGE> 14
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.
IEA INCOME FUND VII,
A California Limited Partnership
By Cronos Capital Corp.
The Managing General Partner
By /s/ JOHN KALLAS
----------------------------------------
John Kallas
Vice President, Treasurer
Principal Finance & Accounting Officer
Date: November 10, 1997
14
<PAGE> 15
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description Method of Filing
--- ----------- ----------------
<S> <C> <C>
3(a) Limited Partnership Agreement of the Registrant, *
amended and restated as of December 1, 1986
3(b) Certificate of Limited Partnership of the Registrant **
27 Financial Data Schedule Filed with this document
</TABLE>
- -------------
* Incorporated by reference to Exhibit "A" to the Prospectus of the
Registrant dated December 3, 1986, included as part of Registration
Statement on Form S-1 (No. 33-9351)
** Incorporated by reference to Exhibit 3.2 to the Registration Statement
on Form S-1 (No. 33-9351)
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT SEPTEMBER 30, 1997 (UNAUDITED) AND THE STATEMENT OF OPERATIONS FOR THE
QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997 (UNAUDITED) AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENE TO SUCH FINANCIAL STATEMENTS INCLUDED AS PART OF ITS
QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD SEPTEMBER 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 330,966
<SECURITIES> 0
<RECEIVABLES> 106,561
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 437,527
<PP&E> 4,361,934
<DEPRECIATION> 2,435,439
<TOTAL-ASSETS> 2,364,022
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,364,022
<TOTAL-LIABILITY-AND-EQUITY> 2,364,022
<SALES> 0
<TOTAL-REVENUES> 355,780
<CGS> 0
<TOTAL-COSTS> 211,619
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 207,241
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
