<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 MARCH 31, 1998
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 0-17942
IEA INCOME FUND VIII,
(A CALIFORNIA LIMITED PARTNERSHIP)
(Exact name of registrant as specified in its charter)
California 94-3046886
(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 VIII,
(A CALIFORNIA LIMITED PARTNERSHIP)
REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD
ENDED MARCH 31, 1998
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - March 31, 1998 (unaudited) and December 31, 1997 4
Statements of Operations for the three months ended March 31,
1998 and 1997 (unaudited) 5
Statements of Cash Flows for the three months ended
March 31, 1998 and 1997 (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. Exhibit and Reports on Form 8-K 14
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Presented herein are the Registrant's balance sheets as of March 31,
1998 and December 31, 1997, statements of operations for the three
months ended March 31, 1998 and 1997, and statements of cash flows for
the three months ended March 31, 1998 and 1997.
3
<PAGE> 4
IEA INCOME FUND VIII,
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
----------- -----------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents, includes $604,043 at March 31,
1998 and $723,264 at December 31, 1997 in
interest-bearing accounts $ 610,985 $ 723,464
Net lease receivables due from Leasing Company
(notes 1 and 2) 244,258 173,380
----------- -----------
Total current assets 855,243 896,844
----------- -----------
Container rental equipment, at cost 10,480,964 10,698,144
Less accumulated depreciation 5,461,215 5,430,138
----------- -----------
Net container rental equipment 5,019,749 5,268,006
----------- -----------
$ 5,874,992 $ 6,164,850
=========== ===========
Partners' Capital
Partners' capital:
General partner $ 2,637 $ 4,370
Limited partners 5,872,355 6,160,480
----------- -----------
Total partners' capital 5,874,992 6,164,850
----------- -----------
$ 5,874,992 $ 6,164,850
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
IEA INCOME FUND VIII,
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
------------------------
March 31, March 31,
1998 1997
-------- --------
<S> <C> <C>
Net lease revenue (notes 1 and 3) $291,622 $286,365
Other operating expenses:
Depreciation 155,174 165,469
Other general and administrative expenses 11,411 7,372
-------- --------
166,585 172,841
-------- --------
Earnings from operations 125,037 113,524
Other income:
Interest income 8,391 7,567
Net gain on disposal of equipment 29,155 37,509
-------- --------
37,546 45,076
-------- --------
Net earnings $162,583 $158,600
======== ========
Allocation of net earnings:
General partner $ 74,576 $ 35,797
Limited partners 88,007 122,803
-------- --------
$162,583 $158,600
======== ========
Limited partners' per unit share of net earnings $ 4.09 $ 5.71
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
IEA INCOME FUND VIII,
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
March 31, March 31,
1998 1997
--------- ---------
<S> <C> <C>
Net cash provided by operating activities $ 197,735 $ 316,828
Cash flows provided by investing activities:
Proceeds from sale of rental equipment 142,226 89,338
Cash flows used in financing activities:
Distribution to partners (452,440) (460,462)
--------- ---------
Net decrease in cash and cash equivalents (112,479) (54,296)
Cash and cash equivalents at January 1 723,464 669,932
--------- ---------
Cash and cash equivalents at March 31 $ 610,985 $ 615,636
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
IEA INCOME FUND VIII,
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) Summary of Significant Accounting Policies
(a) Nature of Operations
IEA Income Fund VIII, A California Limited Partnership (the
"Partnership") was organized under the laws of the State of California
on August 31, 1987 for the purpose of owning and leasing marine cargo
containers. Cronos Capital Corp. ("CCC") is the general partner and,
with its affiliate Cronos Containers Limited (the "Leasing Company"),
manages the business of the Partnership. The Partnership shall continue
until December 31, 2008, unless sooner terminated upon the occurrence
of certain events.
The Partnership commenced operations on January 6, 1988, 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,
1988, at which time 21,493 limited partnership units had been
purchased.
As of March 31, 1998, the Partnership operated 1,889 twenty-foot, 1,854
forty-foot and 114 forty-foot high-cube 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 VIII,
(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 March
31, 1998 and December 31, 1997 were as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
-------- --------
<S> <C> <C>
Lease receivables, net of doubtful accounts of $70,758
at March 31, 1998 and $50,296 at December 31, 1997 $550,882 $526,063
Less:
Direct operating payables and accrued expenses 150,162 182,723
Damage protection reserve 54,934 61,923
Base management fees 47,052 51,339
Reimbursed administrative expenses 9,139 9,682
Incentive fees 45,337 47,016
-------- --------
$244,258 $173,380
======== ========
</TABLE>
(Continued)
8
<PAGE> 9
IEA INCOME FUND VIII,
(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-month periods ended March 31,
1998 and 1997 was as follows:
<TABLE>
<CAPTION>
Three Months Ended
----------------------
March 31, March 31,
1998 1997
-------- --------
<S> <C> <C>
Rental revenue $518,439 $533,814
Less:
Rental equipment operating expenses 109,314 179,213
Base management fees 36,092 37,218
Reimbursed administrative expenses 36,074 31,018
Incentive fees 45,337 --
-------- --------
$291,622 $286,365
======== ========
</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 March 31, 1998 and December
31, 1997.
During the first three months of 1998, the Registrant disposed of 83
containers as part of its ongoing operations. At March 31, 1998, 81% of the
original equipment remained in the Registrant's fleet, as compared to 82%
at December 31, 1997, and was comprised of the following:
<TABLE>
<CAPTION>
40-Foot
20-Foot 40-Foot High-Cube
------- ------- ---------
<S> <C> <C> <C>
Containers on lease:
Term leases 115 177 14
Master leases 1,412 1,261 72
----- ----- -----
Subtotal 1,527 1,438 86
Containers off lease 362 416 28
----- ----- -----
Total container fleet 1,889 1,854 114
===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
40-Foot
20-Foot 40-Foot High-Cube
---------------- ---------------- ----------------
Units % Units % Units %
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Total purchases 2,244 100% 2,396 100% 150 100%
Less disposals 355 16% 542 23% 36 24%
----- ----- ----- ----- ----- -----
Remaining fleet at March 31, 1998 1,889 84% 1,854 77% 114 76%
===== ===== ===== ===== ===== =====
</TABLE>
The Registrant's operating performance contributed to a 29% increase in net
lease receivables at March 31, 1998 when compared to December 31, 1997.
During the first quarter of 1998, distributions from operations and sales
proceeds amounted to $452,440, reflecting distributions to the general and
limited partners for the fourth quarter of 1997. This represents an
increase from the $388,071 distributed during the fourth quarter of 1997,
reflecting distributions for the third quarter of 1997. In 1994, pursuant
to Section 6.1(b) and (c) of the Partnership Agreement, the allocation of
distributions from operations among the general partner and limited
partners was adjusted to 10% and 90%, respectively. With the payment of the
distribution for the third quarter of 1997, the limited partners received
aggregate distributions in an amount equal to their adjusted capital
contributions plus a 10% cumulative, annual return on their adjusted
capital contributions. Thereafter, all distributions were allocated 20% to
the general partner and 80% to the limited partners, pursuant to Sections
6.1(b) and (c) of the Partnership Agreement. Cash distributions from
operations to the general partner in excess of 10% of distributable cash
will be considered an incentive fee and compensation to the general
partner.
Market conditions that existed during 1997 persisted through the first
quarter of 1998. Low container prices, favorable interest rates and the
abundance of available capital continued to discourage ocean carriers and
other transport companies from leasing containers at levels comparable to
previous years.
10
<PAGE> 11
By the end of 1997, the volatility of the Hong Kong and other Asian
financial markets began to negatively impact trade, shipping and container
leasing. As a result, the Registrant's container utilization rate declined
from 81% at December 31, 1997 to 79% at March 31, 1998. Per-diem rental
rates continued 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. These leasing market conditions impacted the Registrant's
financial condition and operating performance during the first quarter of
1998.
2) Material changes in the results of operations between the three-month
period ended March 31, 1998 and the three-month period ended March 31,
1997.
Net lease revenue for the three-month period ended March 31, 1998 was
$291,622, an increase of 2% from the same three-month period in the prior
year. Approximately 18% of the Registrant's net earnings for the
three-month period ended March 31, 1998 were from gain on disposal of
equipment, as compared to 24% for the same three-month period in the prior
year. As the Registrant's disposals increase in subsequent periods, net
gain on disposal should contribute significantly to the Registrant's net
earnings and may fluctuate depending on the level of container disposals.
Gross rental revenue (a component of net lease revenue) for the three-month
period ended March 31, 1998 was $518,439, reflecting a decline of 3% from
the same three-month period in 1997. During 1998, gross rental revenue was
impacted by the Registrant's slightly smaller fleet size and lower per-diem
rental rates. Average per-diem rental rates decreased approximately 8% when
compared to the same three-month period in the prior year. The Registrant's
average fleet size and utilization rates for the three-month periods ended
March 31, 1998 and March 31, 1997 were as follows:
<TABLE>
<CAPTION>
Three Months Ended
--------------------
March 31, March 31,
1998 1997
--------- --------
<S> <C> <C>
Average fleet size (measured in twenty-foot
equivalent units (TEU)) 5,894 6,431
Average Utilization 79% 71%
</TABLE>
The Registrant's aging and declining fleet size contributed to a 6% decline
in depreciation expense when compared to the same three-month period in the
prior year. Rental equipment operating expenses were 21% of the
Registrant's gross lease revenue during the three-month period ended March
31, 1998, as compared to 34% during the three-month period ended March 31,
1997.
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 CCC, the General
Partner of the Registrant. In its letter of resignation to the Parent
Company, Arthur Andersen stated 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 CCC, Arthur Andersen
confirmed to CCC that its resignation as auditors of the entities referred
to in its letter of resignation included its resignation as auditors of CCC
and the Registrant.
11
<PAGE> 12
CCC 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 CCC and the
Registrant, for years preceding 1996, 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 1995 fiscal year and the subsequent interim period
preceding Arthur Andersen's resignation, there were no disagreements
between CCC 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. on April 10,
1997, as reported in its Current Report on Form 8-K, filed April 14, 1997.
In connection with its resignation, Arthur Andersen also prepared a report
pursuant to the provisions of Section 10A(b)(2) of the Securities Exchange
Act of 1934, as amended, for filing by the Parent Company with the
Securities and Exchange Commission (the "SEC"). Following the report of
Arthur Andersen, the SEC, on February 10, 1997, commenced a private
investigation of the Parent Company for the purpose of investigating the
matters discussed in such report and related matters. The Registrant does
not believe that the focus of the SEC's investigation is upon the
Registrant or CCC. CCC is unable to predict the outcome of the SEC's
ongoing private investigation of the Parent Company.
In 1993, the Parent Company negotiated a credit facility (herinafter, the
"Credit Facility") with several banks for the use of the Parent Company and
its affiliates, including CCC. At December 31, 1996, approximately
$73,500,000 in principal indebtedness was outstanding under the Credit
Facility. As a party to the Credit Facility, CCC is jointly and severally
liable for the repayment of all principal and interest owed under the
Credit Facility. The obligations of CCC, and the five other subsidiaries of
the Parent Company that are borrowers under the Credit Facility, are
guaranteed by the Parent Company.
Following negotiations in 1997 with the banks providing the Credit
Facility, an Amended and Restated Credit Agreement was executed in June
1997, subject to various actions being taken by the Parent Company and its
subsidiaries, primarily relating to the provision of additional collateral.
This Agreement was further amended in July 1997 and the provisions of the
Agreement and its Amendment converted the facility to a term loan, payable
in installments, with a final maturity date of May 31, 1998. At December
31, 1997, approximately $37,600,000 was outstanding under the Credit
Facility.
The terms of the Agreement and its Amendment also provide for additional
security over shares in the subsidiary of the Parent Company that owns the
head office of the Parent Company's container leasing operations. They also
provided for the loans to Stefan M. Palatin, the Chairman of the Parent
Company (the "Chairman") and its Chief Executive Officer (and a Director of
CCC), of approximately $5,990,000 and $3,700,000 (totaling approximately
$9,690,000) to be restructured as obligations of the Chairman to another
subsidiary of the Parent Company. These obligations have been collaterally
assigned to the lending banks, together with the pledge of 1,000,000 shares
of the Parent Company's Common Stock owned by the Chairman. These 1,000,000
shares represent 11% of the issued and outstanding shares of Common Stock
of the Parent Company as of December 31, 1997. The shares of the Parent
Company are traded on NASDAQ (CRNSF). (The Chairman, including the
1,000,000 shares pledged to the banks, owns approximately 55% of the issued
and outstanding shares of Common Stock of the Parent Company as of December
31, 1997). Additionally, CCC granted the lending banks a security interest
in the fees to which it is entitled for the services it renders to the
container leasing partnerships of which it acts as general partner,
including its fee income payable by the Registrant.
12
<PAGE> 13
The lending banks have indicated that they will not renew the Credit
Facility, and the Parent Company has yet to secure a source for repayment
of the balance due under the Credit Facility at May 31, 1998. CCC is
currently in discussions with the management of the Parent Company to
provide assurance that the management of the container leasing partnerships
managed by CCC, including the Registrant, is not disrupted pending a
refinancing or reorganization of the indebtedness of the Parent Company and
its affiliates.
The Registrant is not a borrower under the Credit Facility, and neither the
containers nor the other assets of the Registrant have been pledged as
collateral under the Credit Facility.
The Registrant is unable to determine the impact, if any, these concerns
may have on the future operating results and financial condition of the
Registrant or CCC and the Leasing Company's ability to manage the
Registrant's fleet in subsequent periods.
Year 2000
The Registrant relies upon the financial and operational systems provided
by the Leasing company and its affiliates, as well as the systems provided
by other independent third parties to service the three primary areas of
its business: investor processing/maintenance; container leasing/asset
tracking; and accounting finance. The Registrant has received confirmation
from its third-party investor processing/maintenance vendor that their
system is Year 2000 compliant. The Registrant does not expect a material
increase in it vendor servicing fee to reimburse Year 2000 costs. Container
leasing/asset tracking and accounting/finance services are provided to the
Registrant by CCC and its affiliate, Cronos Containers Limited (the
"Leasing Company"), pursuant to the respective Limited Partnership
Agreement and Leasing Agent Agreement. CCC and the Leasing Company have
initiated a program to prepare their systems and applications for the Year
2000. Preliminary studies indicate that testing, conversion and upgrading
of system applications is expected to cost CCC and the Leasing Company less
than $500,000. Pursuant to the Limited Partnership Agreement, CCC or the
Leasing Company, may not seek reimbursement of data processing costs
associated with the Year 2000 program. The financial impact of making these
required system changes is not expected to be material to the Registrant's
financial position, results of operations or cash flows.
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.
13
<PAGE> 14
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 October 13, 1987
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 March 31, 1998.
- -------------
* Incorporated by reference to Exhibit "A" to the Prospectus of the
Registrant dated October 13, 1987, included as part of Registration
Statement on Form S-1 (No. 33-16984)
** Incorporated by reference to Exhibit 3.4 to the Registration Statement on
Form S-1 (No. 33-16984)
14
<PAGE> 15
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 VIII
(A California Limited Partnership)
By Cronos Capital Corp.
The General Partner
By /s/ Dennis J. Tietz
-----------------------------------------------
Dennis J. Tietz
President and Director of Cronos Capital Corp.
("CCC")
Principal Executive Officer of CCC
Date: May 15, 1998
15
<PAGE> 16
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 October 13, 1987
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 October 13, 1987, included as part of Registration
Statement on Form S-1 (No. 33-16984)
** Incorporated by reference to Exhibit 3.4 to the Registration Statement on
Form S-1 (No. 33-16984)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT MARCH 31, 1998 (UNAUDITED) AND THE STATEMENT OF OPERATIONS FOR THE
QUARTERLY PERIOD ENDED MARCH 31, 1998 (UNAUDITED) AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS INCLUDED AS PART OF ITS
QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD MARCH 31, 1998
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 610,985
<SECURITIES> 0
<RECEIVABLES> 244,258
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 855,243
<PP&E> 10,480,964
<DEPRECIATION> 5,461,215
<TOTAL-ASSETS> 5,874,992
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,874,992
<TOTAL-LIABILITY-AND-EQUITY> 5,874,992
<SALES> 0
<TOTAL-REVENUES> 291,622
<CGS> 0
<TOTAL-COSTS> 166,585
<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> 162,583
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>