UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1994
Commission File Number 33-32258
PLM EQUIPMENT GROWTH FUND II
(Exact name of registrant as specified in its charter)
California 94-3041013
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
One Market, Steuart Street Tower
Suite 900, San Francisco, CA 94105-1301
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including (415) 974-1399
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
Number of units outstanding of each of the issuer's classes of
partnership units, as of the latest practicable date:
Class Outstanding at August 12, 1994
Limited Partnership
Depositary Units 7,492,905
General Partnership Units: 1
<PAGE>
<TABLE>
PLM EQUIPMENT GROWTH FUND II
(A Limited Partnership)
BALANCE SHEETS
(thousands of dollars)
ASSETS
<CAPTION>
June 30, December 31,
1994 1993
<S> <C> <C>
Equipment held for
operating leases $ 146,865 $ 149,451
Less accumulated depreciation (85,975) (83,035)
Net equipment 60,890 66,416
Cash and cash equivalents 14,206 5,996
Restricted cash 596 8,178
Accounts receivable, less allowance
for doubtful accounts of $259
in 1994 and $235 in 1993 2,433 2,807
Deferred charges, net of accumulated
amortization of $1,690 in 1994
and $1,855 in 1993 329 489
Prepaid expenses and other assets 274 320
Total assets $ 78,728 $ 84,206
<CAPTION>
LIABILITIES AND PARTNERS' CAPITAL
<S> <C> <C>
Liabilities:
Accounts payable and accrued
expenses $ 1,070 $ 1,773
Due to affiliates 216 355
Notes payable 35,000 35,000
Prepaid deposits and reserve
for repairs 5,940 4,216
Total liabilities 42,226 41,344
Partners' capital (deficit):
Limited partners (7,492,905
Depositary Units, including
1,150 Depositary Units held in
the Treasury) at June 30, 1994
and December 31, 1993 37,488 43,894
General partner (986) (1,032)
Total partners' capital 36,502 42,862
Total liabilities and
partners'capital $ 78,728 $ 84,206
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
PLM EQUIPMENT GROWTH FUND II
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(thousands of dollars except per unit amounts)
<CAPTION>
For the three months
ended June 30,
1994 1993
<S> <C> <C>
Revenues:
Lease revenue $ 6,112 $ 7,732
Interest and other income 242 102
Net gain (loss) on
disposition of equipment 59 (336)
Total revenues 6,413 7,498
Expenses:
Depreciation and amortization 2,764 3,016
Management fees to affiliate 312 398
Repairs and maintenance 1,259 1,527
Interest expense 824 373
Insurance expense to affiliate 168 276
Other insurance expense 291 281
Marine equipment operating
expenses 1,063 1,212
General and administrative
expenses to affiliates 158 154
Other general and administrative
expenses 368 384
Bad debt expense 22 --
Loss on revaluation of
equipment -- 161
Total expenses 7,229 7,782
Net income (loss) $ (816) $ (284)
Partners' share of net
income (loss):
Limited Partners $ (1,021) $ (270)
General Partner 205 (14)
Total $ (816) $ (284)
Net income (loss) per Depositary
Unit (7,492,905 Units, including
1,150 Units held in Treasury
at June 30, 1994 and 1993; $ (.14) $ (0.04)
Cash distributions $ 3,155 $ 3,156
Cash distributions per
Depositary Unit $ 0.40 $ 0.40
<CAPTION>
For the six months
ended June 30,
1994 1993
<S> <C> <C>
Revenues:
Lease revenue $ 12,281 $ 15,430
Interest and other income 355 145
Net gain (loss) on
disposition of equipment 640 6,512
Total revenues 13,276 22,087
Expenses:
Depreciation and amortization 5,521 6,578
Management fees to affiliate 611 783
Repairs and maintenance 2,580 2,495
Interest expense 1,374 888
Insurance expense to affiliate 105 611
Other insurance expense 346 492
Marine equipment operating
expenses 1,854 2,991
General and administrative
expenses to affiliates 338 348
Other general and administrative
expenses 546 603
Bad debt expense 51 --
Loss on revaluation of
equipment -- 161
Total expenses 13,326 15,950
Net income (loss) $ (50) $ 6,137
Partners' share of net income (loss):
Limited Partners $ (412) $ 5,830
General Partner 362 307
Total $ (50) $ 6,137
Net income (loss) per Depositary
Unit (7,492,905 Units, including
1,150 Units held in Treasury
at June 30, 1994 and 1993; $ (.05) $ 0.78
Cash distributions $ 6,310 $ 6,314
Cash distributions per
Depositary Unit $ 0.80 $ 0.80
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
PLM EQUIPMENT GROWTH FUND II
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(thousands of dollars)
<CAPTION>
For the six months ended
June 30,
1994 1993
<S> <C> <C>
Operating activities:
Net income (loss) $ (50) $ 6,137
Adjustments to reconcile net
income to net cash provided
by operating activities:
Net gain on disposition
of equipment (640) (6,512)
Loss on revaluation
of equipment -- 161
Write-off of unamortized
loan origination costs 305 --
Depreciation and amortization 5,521 6,578
Changes in operating assets
and liabilities
Accounts receivable, net 468 (1,808)
Due to affiliates (169) 371
Prepaid expenses and
other assets 46 392
Insurance reimbursement
receivable -- 2,665
Accounts payable and
accrued expenses (703) 167
Prepaid deposits and
reserve for repairs 1,724 983
Cash provided by operating
activities 6,502 9,134
Investing activities:
Proceeds from disposition
of equipment 1,883 12,512
Payments of acquisition fees
to affiliate -- (14)
Payments for purchase
of equipment (501) (241)
Payments for capital
improvements (710) -
Decrease (increase) in
restricted cash 7,582 (11,083)
Cash provided by investing
activities 8,254 1,174
Financing activities:
Principal payments on notes
payable -- (3,218)
Cash distributions paid to
partners (6,310) (6,314)
Payments of debt issuance costs (236) --
Repurchase of Depositary Units -- (70)
Cash used in financing activities (6,546) (9,602)
Cash and cash equivalents:
Net increase (decrease) in cash
and cash equivalents 8,210 706
Cash and cash equivalents at
beginning of period 5,996 2,225
Cash and cash equivalents at
end of period $ 14,206 $ 2,931
Supplemental information:
Interest paid $ 1,069 $ 895
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND II
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1994
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 primarily of normal recurring accruals, to present
fairly the financial position of PLM Equipment Growth Fund II
(the "Partnership") as of June 30, 1994, the statements of
operations for the three and six months ended June 30, 1994
and 1993, and the statements of cash flows for the six months
ended June 30, 1994 and 1993. 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, 1993, on file at the
Securities and Exchange Commission.
2. Reclassification
Certain amounts in the 1993 financial statements have been
reclassified to conform with the 1994 presentation.
Transportation equipment held for operating leases at June 30,
1994 and December 31, 1993 includes equipment previously
reported as held for sale.
3. Restricted Cash
Under the Partnership's new loan agreement (See Footnote 6 to
the Financial Statements), at June 30, 1994, the Partnership
is no longer required to deposit proceeds realized on the sale
or disposal of equipment into a joint escrow account, to be
held for equipment acquisitions or debt paydown only. At
December 31, 1993, the Partnership was required to deposit
proceeds realized on the sale or disposal of equipment into
the joint escrow account, and could only be used for the above
mentioned purposes.
4. Cash Distributions
Cash distributions are recorded when paid and totaled
$6,310,000 for the six months ended June 30, 1994. Cash
distributions to unit holders in excess of net income are
considered to represent a return of capital. Cash
distributions to unit holders of $5,994,000 and $168,000 for
the six months ended June 30, 1994 and 1993, respectively,
were deemed to be a return of capital.
Cash distributions of $2,997,000 ($0.40 per Depositary Unit)
were declared on June 15, 1994, and are to be paid on August
15, 1994, to the Unitholders of record as of June 30, 1994.
5. Equipment
Equipment held for operating leases is stated at cost. As of
June 30, 1994, the General Partner has reclassified assets
previously reported as held for sale to equipment held for
operating lease, unless the particular asset is subject to a
pending contract for sale.
The components of equipment are as follows (in thousands):
<TABLE>
<CAPTION>
June 30, December 31,
1994 1993
<S> <C> <C>
Equipment held for operating
leases:
Rail equipment $ 19,800 $ 19,800
Marine containers 17,573 17,889
Marine vessels 29,461 29,461
Aircraft 50,644 49,939
Trailers and tractors 13,071 16,049
Mobile offshore drilling unit 16,316 16,313
146,865 149,451
Less accumulated depreciation (85,975) (83,035)
Net equipment $ 60,890 $ 66,416
</TABLE>
As of June 30, 1994, all equipment in the Partnership
portfolio was either on lease or operating in PLM affiliated
short-term trailer rental facilities, except for 331 marine
containers and one railcar. As of December 31, 1993, 73
marine containers and three railcars were off lease. The
aggregate carrying value of equipment off lease was $1,550,000
and $172,001 at June 30, 1994, and December 31, 1993,
respectively.
Between January 1, 1994, and June 30, 1994, the Partnership
purchased 1,147 used marine containers at a cost of $501,000
and was obligated to pay acquisition and lease negotiation
fees of $28,000 to PLM Transportation Equipment Corporation
("TEC"), a wholly-owned subsidiary of the General Partner.
Between January 1, 1993, and June 30, 1993, the Partnership
purchased 26 trailers at a cost of $241,000 and was obligated
to pay acquisition and lease negotiation fees of $14,000 to
TEC. In addition, the Partnership had entered into a
commitment to purchase a 55% interest in a mobile offshore
drilling unit for $12,100,000 (the remaining interest in this
equipment is owned by an affiliated partnership) in the second
quarter of 1993. In connection with this commitment, the
Partnership was required to reimburse TEC for a deposit of
$1,210,000 towards the purchase of this equipment. The
Partnership was also obligated to pay acquisition and lease
negotiation fees totaling $400,000 to TEC. The total amount
of deposits and fees is included on the June 30, 1993, Balance
Sheet as equipment acquisition deposits. The Partnership
completed the purchase of this equipment during July 1993.
During the six months ended June 30, 1994, the Partnership
sold or disposed of 189 marine containers and 262 trailers
with a net book value of $1.2 million, for proceeds of $1.9
million. For the six months ended June 30, 1993, the
Partnership sold or disposed of 146 marine containers, 588
railcars, two marine vessels, 23 tractors and 51 trailers with
a net book value of $6.7 million, and unused drydock reserves
of $0.7 million, for proceeds of $12.5 million.
6. Notes Payable
On March 31, 1994, the Partnership completed a refinancing of
its $35 million bank loan that was due on September 30, 1995.
The new $35 million loan facility is unsecured and non-
recourse, limits additional borrowings and specifies covenants
related to collateral coverage, fixed charge coverage and
ratios for market value and composition of the equipment owned
by the Partnership. The loan facility bears interest at LIBOR
+ 1.55% per annum (5.425% at June 30, 1994) and is payable
quarterly in arrears. Principal is payable in annual
installments of $4 million on March 31, 1996 and 1997, $9
million on March 31, 1998 and 1999, and a final payment of $9
million on March 31, 2000.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
(A) Sources
The Partnership's primary source of liquidity is operating
cash flow. The Partnership's level of operating cash flow has
declined from 1993 levels due in part to depressed conditions in
certain equipment markets (see "Trends" below) that have impacted
re-leasing rates, and the sale of certain partnership equipment.
The Partnership uses net operating cash flow primarily to pay
cash distributions to the Partners and, to the extent available, to
add to working capital reserves. Proceeds realized from the sale or
disposal of equipment may be used for the purchase of additional
equipment, or the repayment of outstanding debt. The Partnership's
sources of capital include proceeds from its initial public
offering of limited partnership units, debt financing, and during
the reinvestment phase of the partnership, excess net cash flow
from operations remaining after a certain level of distributions
has been made to the Limited Partners.
On March 31, 1994, the Partnership completed a refinancing of
its $35 million bank loan that was due on September 30, 1995. The
new debt comprises notes payable of $35 million, and the
corresponding loan agreements require the Partnership to maintain
a minimum debt coverage ratio based on the fair market value of
equipment, a minimum fixed charge coverage ratio, and discourages
over-concentration in any one equipment type. The loan facility
bears interest at LIBOR + 1.55% per annum (5.425% at June 30, 1994)
and is payable quarterly in arrears. Principal is payable in
annual installments of $4 million on March 31, 1996 and 1997, $9
million on March 31, 1998 and 1999, and a final payment of $9
million on March 31, 2000. The Partnership is currently in
compliance with the debt covenants.
(B) Asset Sales and Purchases
Equipment sales and dispositions prior to the Partnership's
planned liquidation phase can result from a performance-based
decision by the General Partner or, in some cases, an election of
the lessee provided for in certain lease agreements. Additionally,
certain lessees are required to pay stipulated loss values on
equipment lost or disposed of during the term of the lease
agreement. The General Partner intends to use the proceeds
realized either from the selective sale of assets or the incidental
disposal of equipment to invest in additional equipment during the
reinvestment phase of Partnership operations, and subsequent to
that phase, to distribute such proceeds to the Partners or pay down
debt.
During the six months ended June 30, 1994, the Partnership
purchased 1,147 used marine containers at a cost of $0.5 million,
and disposed of 189 marine containers and 262 trailers for proceeds
of $1.9 million.
As of June 30, 1994, the Partnership had committed to purchase
a group of new marine containers for $5.5 million. The Partnership
also purchased thirteen used trailers for $0.3 million on July 29,
1994.
Except as stated above, the General Partner has no additional
planned expenditures but anticipates available cash will be
invested in equipment as appropriate opportunities are identified.
Additionally, the General Partner is not aware of any contingencies
that would require capital resources other than those provided by
operating cash flow and sales and liquidation proceeds.
(C) Depositary Unit Repurchase Plan
On December 28, 1992, the Partnership engaged in a program to
repurchase up to 200,000 Depositary Units. As of June 30, 1994,
the Partnership had cumulatively repurchased 6,700 Depositary Units
at a cost of $70,000.
(D) Market Values
The General Partner prepares an evaluation of the fair market
value and net realizable value of the Partnership's equipment
portfolio at least annually, using, among other sources,
independent third-party appraisals, values reported in trade
publications, and comparative values from arms-length transactions
for similar equipment. Concurrently, the General Partner evaluates
whether the current fair market value of equipment represents the
effects of the current market conditions or permanent impairment of
value (e.g., technological obsolescence or regulatory changes,
etc.). Equipment whose carrying value is determined to be
permanently impaired, without possibility of being leased at an
acceptable rate, has its book value adjusted to the estimated net
realizable value. Uncertain market conditions have caused the
General Partner to continuously monitor the changes in market
values for Partnership equipment, and on occasion, the General
Partner has made adjustments to Partnership equipment values that
reflect this volatility. While there has continued to be a general
decline in certain market values, the total fair market value of
the assets still exceeds the Partnership's carrying value. No
adjustments to reflect impairment of equipment carrying values were
required in the second quarter of 1994.
Comparison of the Partnership's Operating Results for the Three
Months Ended June 30, 1994 and 1993
(A) Revenues
Total revenues for the quarter ended June 30, 1994, of $6.4
million declined from $7.5 million for the same period in 1993.
This decrease resulted primarily from lower lease revenue.
(1) Lease revenues decreased to $6.1 million in the quarter ended
June 30, 1994, from $7.7 million in the same period in 1993,
primarily as a result of:
(a) declines of $1.7 million in marine vessel revenues due to
the sale of one marine vessel in the fourth quarter 1993, which was
on a voyage charter during the second quarter of 1993;
(b) declines of $0.3 million in container revenues due to the
liquidation of 305 marine containers in 1993, and 189 marine
containers in the first six months of 1994;
(c) declines of $0.1 million in railcar revenues due to the
sale of 639 railcars during 1993;
(d) an increase of $0.5 million in mobile offshore drilling
unit ("Rig") revenue due to the acquisition of a 55% interest in
the Rig during the third quarter of 1993.
(2) Net gain on disposition of equipment during the second quarter
of 1994 totaled $59,000 from the sale or disposal of a trailer and
94 marine containers with a net book value of $139,000. During the
same period in 1993, the Partnership sold or disposed of four
railcars, 60 tractors and trailers, and 94 marine containers with
a net book value of $0.7 million for proceeds of $0.4 million (See
Footnote 5 to the financial statements).
(B) Expenses
Total expenses for the quarter ended June 30, 1994, decreased
to $7.2 million from $7.8 million for the same period in 1993. The
decrease in 1994 expenses was primarily attributable to decreases
in depreciation expense, repairs and maintenance, and marine vessel
operating expenses.
(1) Direct operating expenses (defined as repairs and maintenance,
insurance expenses, and marine operating expenses) decreased to
$2.8 million in the second quarter of 1994 from $3.3 million in the
same period in 1993. This decrease resulted from:
(a) decreases of $0.3 million in repairs and maintenance
costs from 1993 levels resulting from the sale of a marine vessel
in the fourth quarter of 1993;
(b) a decrease of $0.2 million in marine vessel operating
expenses due to the sale of a marine vessel in the fourth quarter
of 1993.
(2) Indirect operating expenses (defined as depreciation expense,
management fees,interest expense, general and administrative
expenses, and bad debt expense) increased to $4.4 million in the
second quarter of 1994 from $4.3 million in the same period in
1993. This decrease resulted from:
(a) an increase of $0.4 million in interest expense from a
$0.3 million write-off of unamortized loan origination costs due to
the refinancing of the Partnership's debt and a $0.1 million
increase resulting from a higher base rate of interest charged on
the Partnership's debt;
(b) decreases in depreciation expense of $0.3 million from
1993 levels, reflecting the Partnership's double-declining
depreciation method and the effect of asset sales in 1993 and 1994,
partially offset by the acquisition of the Rig in July 1993.
(C) Net Loss
The Partnership's net loss of $0.8 million for the second
quarter of 1994 increased from a net loss of $0.3 million in the
same period of 1993. The Partnership's ability to acquire, operate
and liquidate assets, secure leases, and re-lease those assets
whose leases expire during the duration of the Partnership is
subject to many factors and the Partnership's performance in the
second quarter 1994 is not necessarily indicative of future
periods. In the second quarter 1994, the Partnership distributed
$3.0 million to the Limited Partners, or $0.40 per Depositary Unit.
Comparison of the Partnership's Operating Results for the Six
Months Ended June 30, 1994 and 1993
(A) Revenues
Total revenues for the six months ended June 30, 1994, of
$13.3 million declined from $22.1 million for the same period in
1993. This decrease resulted primarily from lower gains realized on
the disposition of assets and from lower lease revenue.
(1) Lease revenues decreased to $12.3 million in the six months
ended June 30, 1994 from $15.4 million in the same quarter of 1993,
primarily as a result of:
(a) declines of $3.1 million in marine vessel revenues due to
the sale of three on-lease vessels during the first and fourth
quarters of 1993;
(b) declines of $0.5 million in railcar revenues due to the
sale of 639 railcars during 1993;
(c) declines of $0.4 million in container revenues due to the
liquidation of 305 marine containers in 1993, and 189 marine
containers in the first six months of 1994;
(d) an increase of $0.9 million in mobile offshore drilling
unit ("Rig") revenue due to the acquisition of a 55% interest in a
Rig during the third quarter of 1993.
(2) Net gain on disposition of equipment during the six months
ended June 30, 1994, totaled $0.6 million from the sale or disposal
of 262 trailers and 189 marine containers with a net book value of
$1.2 million, for proceeds of $1.9 million. During the same period
in 1993, the Partnership sold or disposed of two marine vessels,
588 railcars, 74 tractors and trailers, and 146 marine containers
with a net book value of $6.7 million and unused drydock reserves
of $0.7 million, for proceeds of $12.5 million (See Footnote 5 to
the Financial Statements).
(B) Expenses
Total expenses for the six months ended June 30, 1994,
decreased to $13.3 million from $15.9 million for the same period
in 1993. The decrease in 1994 expenses was primarily attributable
to decreases in depreciation expense, marine vessel operating
expenses, and insurance expense.
(1) Direct operating expenses (defined as repairs and maintenance,
insurance expenses, and marine operating expenses) decreased to
$4.9 million for the six months ended June 30, 1994, from $6.6
million in the same period of 1993. This decrease resulted from:
(a) decreases of $0.6 million in the cost of marine vessel
insurance resulted from the sale of three marine vessels in 1993,
and refund of a $0.2 million from an insurance pool that the
Partnership's marine vessels participate in due to lower than
estimated insurance claims in the pool;
(b) decreases of $1.1 million in marine vessel operating
expenses due to the sale of three marine vessels in 1993. This
decrease was partially offset by increased operating costs for
three marine vessels which operated under leases (voyage charters
and utilization-based pooling arrangements) in which the
Partnership paid costs not incurred when the vessels operated under
time charters in the similar period one year earlier.
(2) Indirect operating expenses (defined as depreciation expense,
management fees,interest expense, general and administrative
expenses, and bad debt expense) decreased to $8.4 million for the
six months ended June 30, 1994, from $9.2 million in the same
period of 1993. This decrease resulted primarily from:
(a) a decrease in depreciation expense of $1.1 million from
1993 levels, reflecting the Partnership's double-declining balance
depreciation method and the effect of asset sales in 1993 and 1994,
partially offset by the acquisition of the Rig in July 1993;
(b) an increase in interest expense of $0.5 million from a
$0.3 million write-off of unamortized loan origination costs due to
the refinancing of the Partnership's debt, and a $0.2 million
increase from a higher base rate of interest charged on the
Partnership's debt during 1994, offset by a reduction in the amount
of debt outstanding when compared to the same period in 1993;
(c) a decrease of $0.2 million in management fees to
affiliates, reflecting the lower levels of lease revenues in 1994
as compared to 1993.
(C) Net Income (Loss)
The Partnership's net loss of $50,000 for the six months ended
June 30, 1994, decreased from a net income of $6.1 million for the
same period in 1993. The Partnership's ability to acquire, operate
and 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 six months of 1994 is not necessarily indicative of future
periods. In the first six months of 1994, the Partnership
distributed $6.0 million to the Limited Partners, or $0.80 per
Depositary Unit.
Trends
Due in part to continuing recessionary conditions in Europe
and Japan over the last year, and low oil and gas prices, the
markets for certain types of transportation equipment, primarily
mobile offshore drilling units, marine containers and vessels are
performing below historic norms. These conditions have resulted in
lower lease rates and reduced values for these types of equipment,
and have correspondingly significantly impacted Partnership cash
flow. The General Partner will closely monitor the effects of
these factors on the Partnership's financial condition, and as
stated previously, take appropriate actions regarding
underperforming equipment.
The return of lease rates on certain types of equipment to
their historical levels is dependent on a number of factors
including improved international economic conditions, the absence
of technological obsolescence, new government regulations,
increased industry- specific demand, and the increased availability
of financing.
The Partnership intends to use excess cash flow, if any, after
payment of expenses, loan principal and cash distributions to
acquire additional equipment during the first seven years of
Partnership operations.
<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 EQUIPMENT FUND II
By: PLM Financial Services, Inc.
General Partner
Date: August 12, 1994 By: /s/ David J. Davis
David J. Davis
Vice President and
Corporate Controller
