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
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1995
/ / 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: 0-17658
Fidelity Leasing Income Fund V, L.P.
_______________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 23-2496362
_______________________________________________________________________________
(State of organization) (I.R.S. Employer Identification)
250 King of Prussia Road, Radnor, PA 19087
_______________________________________________________________________________
(Address of principal executive offices) (Zip code)
(610) 964-7102
_______________________________________________________________________________
(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 regis-
trant was required to file such reports), and (2) has been subject to such fil-
ing requirements for the past 90 days.
Yes __X__ No _____
Page 1 of 11
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND V, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
September 30, December 31,
1995 1994
_____________ _____________
Cash and cash equivalents $4,038,223 $ 4,776,517
Investment securities held to maturity - 495,991
Accounts receivable 142,437 271,585
Interest receivable 1,404 24,920
Due from related parties 22,252 47,556
Equipment under operating leases
(net of accumulated depreciation
of $16,051,553 and $22,658,526,
respectively) 4,771,568 6,008,750
Net investment in direct financing leases 297,618 782,651
Equipment held for sale or lease 23,039 560,211
__________ ___________
Total assets $9,296,541 $12,968,181
========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 521,589 $ 351,854
Accounts payable - equipment 532,667 -
Accounts payable and
accrued expenses 263,673 275,955
Due to related parties 21,029 4,411
__________ ___________
Total liabilities 1,338,958 632,220
Partners' capital 7,957,583 12,335,961
__________ ___________
Total liabilities and
partners' capital $9,296,541 $12,968,181
========== ===========
The accompanying notes are an integral part of these financial statements.
2
FIDELITY LEASING INCOME FUND V, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
____ ____ ____ ____
Income:
Rentals $1,382,282 $2,709,164 $4,239,127 $6,695,084
Earned income on direct
financing leases 24,944 18,748 58,502 58,500
Interest 53,801 43,850 176,606 106,227
Gain on sale of equipment,
net 743,166 695,116 1,023,022 787,768
Other 574 13,139 6,183 29,044
__________ __________ __________ __________
2,204,767 3,480,017 5,503,440 7,676,623
__________ __________ __________ __________
Expenses:
Depreciation 878,741 1,452,623 3,015,620 4,843,537
Write-down of equipment to
net realizable value 6,161 150,000 114,931 150,000
General and administrative 6,251 61,081 43,009 225,533
General and administrative to
related party 24,268 56,689 111,323 194,052
Management fee to related
party 94,487 162,528 265,855 401,641
__________ __________ __________ __________
1,009,908 1,882,921 3,550,738 5,814,763
__________ __________ __________ __________
Net income $1,194,859 $1,597,096 $1,952,702 $1,861,860
========== ========== ========== ==========
Net income per equivalent
limited partnership unit $ 43.73 $ 41.53 $ 64.86 $ 45.21
========== ========== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 27,205 38,131 29,484 40,271
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
3
FIDELITY LEASING INCOME FUND V, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the nine months ended September 30, 1995
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1995 $28,230 79,679 $12,307,731 $12,335,961
Redemptions - (629) (76,387) (76,387)
Cash distributions (62,546) - (6,192,147) (6,254,693)
Net income 40,300 - 1,912,402 1,952,702
_______ ______ ___________ ___________
Balance, September 30, 1995 $ 5,984 79,050 $ 7,951,599 $ 7,957,583
======= ====== =========== ===========
The accompanying notes are an integral part of these financial statements.
4
FIDELITY LEASING INCOME FUND V, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
____ ____
Cash flows from operating activities:
Net income $1,952,702 $1,861,860
__________ __________
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 3,015,620 4,843,537
Write down of equipment to
net realizable value 114,931 150,000
Proceeds from direct financing leases,
net of earned income 485,033 98,628
Gain on sale of equipment, net (1,023,022) (787,768)
(Increase) decrease in accounts receivable 129,148 (133,968)
(Increase) decrease in due from
related parties 25,304 271,538
Increase (decrease) in lease rents paid
in advance 169,735 (94,011)
Increase (decrease) in accounts payable -
equipment 532,667 -
Increase (decrease) in accounts payable and
accrued expenses (12,282) (28,587)
Increase (decrease) in due to related parties 16,618 35,693
Increase (decrease) in other, net 23,516 2,470
__________ __________
3,477,268 4,357,532
__________ __________
Net cash provided by operating activities 5,429,970 6,219,392
__________ __________
Cash flows from investing activities:
Acquisition of equipment (2,641,328) (585,540)
Maturity of investment securities held
to maturity 495,991 501,664
Proceeds from sale of equipment 2,308,153 1,588,611
__________ __________
Net cash provided by investing activities 162,816 1,504,735
__________ __________
Cash flows from financing activities:
Distributions (6,254,693) (4,162,344)
Redemptions of capital (76,387) (592,303)
__________ __________
Net cash used in financing activities (6,331,080) (4,754,647)
__________ __________
Increase (decrease) in cash and
cash equivalents (738,294) 2,969,480
Cash and cash equivalents, beginning
of period 4,776,517 2,290,588
__________ __________
Cash and cash equivalents, end of period $4,038,223 $5,260,068
========== ==========
The accompanying notes are an integral part of these financial statements.
5
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
(Unaudited)
The accompanying unaudited condensed financial statements have been prepared
by the Fund in accordance with generally accepted accounting principles,
pursuant to the rules and regulations of the Securities and Exchange Commis-
sion. In the opinion of Management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Certain amounts on the 1994 financial statements have been
reclassified to conform to the presentation adopted in 1995.
1. EQUIPMENT LEASED
Equipment on lease consists primarily of computer peripheral equipment
under operating leases. A majority of the equipment was manufactured by
IBM. The lessees have agreements with the manufacturer to provide main-
tenance for the leased equipment. The Fund's operating leases are for
initial lease terms of 9 to 60 months. Generally, operating leases will
not recover all of the undepreciated cost and related expenses of its
rental equipment during the initial lease terms and the Fund is prepared to
remarket the equipment in future years. Fund policy is to review quarterly
the expected economic life of its rental equipment in order to determine
the recoverability of its undepreciated cost. Recent and anticipated
technological developments affecting computer equipment and competitive
factors in the marketplace are considered among other things, as part of
this review. In accordance with Generally Accepted Accounting Principles,
the Fund writes down its rental equipment to its estimated net realizable
value when the amounts are reasonably estimated and only recognizes gains
upon actual sale of its rental equipment. As a result, $114,931 and
$150,000 was charged to write-down of equipment to net realizable value for
the nine months ended September 30, 1995 and 1994, respectively. The
General Partner believes, after analyzing the current equipment portfolio,
that there are impending gains to be recognized upon the sale of certain of
its equipment in future years. Any future losses are dependent upon
unanticipated technological developments affecting the computer equipment
industry in subsequent years.
The Fund also has equipment leased under the direct financing method in
accordance with Statement of Financial Accounting Standards No. 13. This
method provides for recognition of income (the excess of the aggregate
future rentals and estimated additional amounts recoverable upon expiration
of the lease over the related equipment cost) over the life of the lease
using the interest method.
The net investment in direct financing leases as of September 30, 1995 is
as follows:
Net minimum lease payments to be received $350,000
Less unearned income 52,000
Add expected future residuals -
________
$298,000
========
6
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
1. EQUIPMENT LEASED (Continued)
The future approximate minimum rentals to be received on noncancellable
operating leases as of September 30, 1995 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1995 $1,096,000 $ 23,000
1996 2,953,000 93,000
1997 1,703,000 93,000
1998 438,000 93,000
1999 - 48,000
__________ ________
$6,190,000 $350,000
========== ========
2. RELATED PARTY TRANSACTIONS
The General Partner receives 6% or 3% of gross rental payments from equip-
ment under operating leases and full pay-out leases, respectively, for
administrative and management services performed on behalf of the Fund.
Full pay-out leases are noncancellable leases with terms in excess of 42
months and for which rental payments during the initial term are at least
sufficient to recover the purchase price of the equipment, including acqui-
sition fees. This management fee is paid quarterly after the Limited
Partners have received distributions at a rate of 12% per year on the
aggregate amnount paid for their units.
Additionally, the General Partner and its affiliates are reimbursed by the
Fund for certain costs of services and materials used by or for the Fund
except those items covered by the above-mentioned fees. Following is a
summary of fees and costs of services and materials charged by the General
Partner or its affiliates during the three and nine months ended Sep-
tember 30:
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
____ ____ ____ ____
Management fee $94,487 $162,528 $265,855 $401,641
Reimbursable costs 24,268 56,689 111,323 194,052
Amounts due from related parties at September 30, 1995 and December 31,
1994 represent monies due the Fund from the General Partner and/or other
affiliated funds for rentals and sales proceeds collected and not yet re-
mitted the Fund.
Amounts due to related parties at September 30, 1995 and December 31, 1994
represent monies due to the General Partner for the fees and costs men-
tioned above, as well as, rentals and sales proceeds collected by the Fund
on behalf of other affiliated funds.
3. SUBSEQUENT EVENT
Cash Distribution:
The General Partner declared and paid a cash distribution of $506,295 in
November 1995 for the three months ended September 30, 1995, to all
admitted partners as of September 30, 1995.
7
FIDELITY LEASING INCOME FUND V, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Fidelity Leasing Income Fund V, L.P. had revenues of $2,204,767 and
$3,480,017 for the three months ended September 30, 1995 and 1994,
respectively, and $5,503,440 and $7,676,623 for the nine months ended September
30, 1995 and 1994, respectively. Rental income from the leasing of computer
peripheral equipment accounted for 63% and 78% of total revenues for the third
quarter of 1995 and 1994, respectively and 77% and 87% for the nine months
ended September 30, 1995 and 1994, respectively. The decrease in revenues is
primarily attributable to a decrease in rental income. In 1995, rental income
decreased by approximately $3,128,000 because of equipment which came off
lease and was re-leased at lower rental rates or sold. This decrease, however,
was offset by approximately $672,000 of rents generated from equipment
purchased since the third quarter of 1994. The overall decrease in total
revenues was offset by an increase in the net gain on sale of equipment and
interest income. The Fund recognized a net gain on sale of equipment of
$1,023,022 for the nine months ended September 30, 1995 compared to $787,768
for the nine months ended September 30, 1994. Interest income increased in
1995 because of the rise in interest rates since September of 1994.
Expenses were $1,009,908 and $1,882,921 for the three months ended Septem-
ber 30, 1995 and 1994, respectively and $3,550,738 and $5,814,763 for the nine
months ended September 30, 1995 and 1994, respectively. Depreciation expense
comprised 87% and 77% of total expenses during the third quarter of 1995 and
1994, respectively and 85% and 83% of total expenses during the first nine
months of 1995 and 1994, respectively. The decrease in expenses between 1995
and 1994 is primarily attributable to a decrease in depreciation expense
because of equipment which came off lease and was terminated or sold since
September of 1994. In addition, equipment expenses incurred by the Fund for
remarketing of equipment, which are included in general and administrative
expenses, decreased in 1995 as compared to 1994. During 1995, management fee
to related party decreased proportionate to the decrease in rental income which
also accounts for the decrease in total expenses. Furthermore, general and
administrative expenses to related party decreased in 1995 because of a decline
in the reimbursable costs incurred to the General Partner for remarketing of
eequipment. Finally, based upon the review of the recoverability of the
undepreciated cost of rental equipment, $114,931 was charged to operations to
write down equipment to its net realizable value for the nine months ended
September 30, 1995 as compared to $150,000 for the nine months ended Sep-
tember 30, 1994 which also accounts for the decrease in total expenses. The
General Partner believes, after analyzing the current equipment portfolio, that
there are impending gains to be recognized upon the sale of certain of its
equipment in future years. Any future losses are dependent upon unanticipated
technological developments affecting the computer equipment industry in
subsequent years.
For the three months ended September 30, 1995 and 1994, the Fund had net
income of $1,194,859 and $1,597,096, respectively. For the nine months ended
September 30, 1995 and 1994, the Fund had net income of $1,952,702 and
$1,861,860, respectively. The earnings per equivalent limited partnership
unit, after earnings allocated to the General Partner were $43.73 and $41.53
based on a weighted average number of equivalent limited partnership units
outstanding of 27,205 and 38,131 for the quarter ended September 30, 1995 and
1994, respectively. The earnings per equivalent limited partnership unit,
after earnings allocated to the General Partner, were $64.86 and $45.21 based
on a weighted average number of equivalent limited partnership units outstand-
ing of 29,484 and 40,271 for the nine months ended September 30, 1995 and 1994,
respectively.
8
FIDELITY LEASING INCOME FUND V, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (Continued)
The Fund generated funds from operations of $1,336,595 and $2,504,603, for
the purpose of determining cash available for distribution and distributed
$506,295 and $1,367,899 to partners in November 1995 and 1994, respectively.
For the nine months ended September 30, 1995 and 1994, the Fund generated funds
from operations of $4,060,231 and $6,067,629 and distributed $3,523,744 and
$2,739,955 to partners during the nine months ended September 30, 1995 and
1994, respectively and $506,295 and $1,367,899 in November 1995 and 1994,
respectively.
ANALYSIS OF FINANCIAL CONDITION
The Fund continues to purchase computer peripheral equipment, with cash
available from operations and sales proceeds which were not distributed to
partners. The Fund purchased $2,641,328 and $585,540 of equipment during the
nine months ended September 30, 1995 and 1994, respectively
The cash position of the Fund is reviewed daily and cash is invested on a
short-term basis.
The Fund's cash from operations is expected to continue to be adequate to
cover all operating expenses and contingencies during the next twelve month
period.
9
Part II: Other Information
FIDELITY LEASING INCOME FUND V, L.P.
September 30, 1995
Item 1. Legal Proceedings: Inapplicable.
Item 2. Changes in Securities: Inapplicable.
Item 3. Defaults Upon Senior Securities: Inapplicable.
Item 4. Submission of Matters to a Vote of Securities Holders: Inapplicable.
Item 5. Other Information: Inapplicable.
Item 6. Exhibits and Reports on Form 8-K:
a) Exhibits: EX-27
b) Reports on Form 8-K: A report on Form 8-K was filed on October
12, 1995 with the Securities and Exchange Commission reporting
under Item 1.
10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the regis-
trant has duly caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.
FIDELITY LEASING INCOME FUND V, L.P.
11-14-95 By: P. Donald Mooney
________ _____________________________
Date P. Donald Mooney
President of
Fidelity Leasing Corporation
(Principal Operating Officer)
11-14-95 By: Marianne T. Schuster
________ _____________________________
Date Marianne T. Schuster
Vice President of
Fidelity Leasing Corporation
(Principal Financial Officer)
11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the regis-
trant has duly caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.
FIDELITY LEASING INCOME FUND V, L.P.
_______ _____________________________
Date P. Donald Mooney
President of
Fidelity Leasing Corporation
(Principal Operating Officer)
_______ _____________________________
Date Marianne T. Schuster
Vice President of
Fidelity Leasing Corporation
(Principal Financial Officer)
11
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 4,038,223
<SECURITIES> 0
<RECEIVABLES> 166,093
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,204,316
<PP&E> 20,846,160
<DEPRECIATION> 16,051,553
<TOTAL-ASSETS> 9,296,541
<CURRENT-LIABILITIES> 1,338,958
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 7,957,583
<TOTAL-LIABILITY-AND-EQUITY> 9,296,541
<SALES> 4,239,127
<TOTAL-REVENUES> 5,503,440
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,550,738
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,952,702
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,952,702
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,952,702
<EPS-PRIMARY> 23.60
<EPS-DILUTED> 23.60
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