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 June 30, 1996
/ / 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 No.)
7 E. Skippack Pike, Suite 275, Ambler, Pennsylvania 19002
_______________________________________________________________________________
(Address of principal executive offices) (Zip code)
(215) 619-2800
_______________________________________________________________________________
(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 12
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND V, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
June 30, December 31,
1996 1995
_____________ ____________
Cash and cash equivalents $3,037,261 $3,068,308
Accounts receivable 260,170 263,855
Interest receivable 41,826 10,366
Due from related parties 73,174 224,043
Equipment under operating leases
(net of accumulated depreciation
of $10,815,653 and $16,370,416,
respectively) 4,160,210 4,235,949
Net investment in direct financing leases 245,930 280,779
Equipment held for sale or lease 44,741 13,322
__________ __________
Total assets $7,863,312 $8,096,622
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 501,321 $ 464,730
Accounts payable and
accrued expenses 140,062 241,637
Due to related parties 426 12,170
__________ __________
Total liabilities 641,809 718,537
Partners' capital 7,221,503 7,378,085
__________ __________
Total liabilities and
partners' capital $7,863,312 $8,096,622
========== ==========
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 Six Months Ended
June 30 June 30
1996 1995 1996 1995
____ ____ ____ ____
Income:
Rentals $ 958,732 $1,387,368 $1,979,377 $2,856,844
Earned income on direct
financing leases 5,707 16,374 11,811 33,558
Interest 61,327 57,012 92,723 122,805
Gain on sale of equipment,
net 155,599 29,569 239,296 279,857
Other 2,781 40,504 3,623 44,494
__________ ___________ _________ __________
1,184,146 1,530,827 2,326,830 3,337,558
__________ ___________ _________ __________
Expenses:
Depreciation and
amortization 602,989 1,007,455 1,262,051 2,136,879
Write-down of equipment to
net realizable value 94,145 58,770 176,787 108,770
General and administrative 38,401 35,679 76,254 75,643
General and administrative
to related party 53,624 49,720 100,898 87,055
Management fee to
related party 58,223 83,221 120,162 171,368
__________ __________ __________ __________
847,382 1,234,845 1,736,152 2,579,715
__________ __________ __________ __________
Net income $ 336,764 $ 295,982 $ 590,678 $ 757,843
========== ========== ========== ==========
Net income per equivalent
limited partnership unit $ 13.05 $ 9.87 $ 22.79 $ 23.60
========== ========== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 25,619 28,616 25,712 30,624
========== ========== ========== ==========
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 six months ended June 30, 1996
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1996 $3,321 78,970 $7,374,764 $7,378,085
Redemptions - (2,833) (267,260) (267,260)
Cash distributions (4,800) - (475,200) (480,000)
Net income 4,800 - 585,878 590,678
______ ______ __________ __________
Balance, June 30, 1996 $3,321 76,137 $7,218,182 $7,221,503
====== ====== ========== ==========
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 six months ended June 30, 1996 and 1995
(Unaudited)
1996 1995
________ ________
Cash flows from operating activities:
Net income $ 590,678 $ 757,843
__________ __________
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 1,262,051 2,136,879
Write-down of equipment to net
realizable value 176,787 108,770
Proceeds from direct financing leases,
net of earned income 34,849 73,150
Gain on sale of equipment, net (239,296) (279,857)
(Increase) decrease in accounts receivable 3,685 63,465
(Increase) decrease in interest receivable (31,460) 8,183
(Increase) decrease in due from related parties 150,869 28,541
Increase (decrease) in lease rents paid
in advance 36,591 513,357
Increase (decrease) in accounts payable-
equipment - 1,046,947
Increase (decrease) in accounts payable and
accrued expenses (101,575) (138,172)
Increase (decrease) in due to related parties (11,744) 130,111
_________ __________
1,280,757 3,691,374
__________ __________
Net cash provided by operating activities 1,871,435 4,449,217
__________ __________
Cash flows from investing activities:
Acquisition of equipment (1,613,582) (1,425,908)
Maturity of investment securities held
to maturity - 495,991
Proceeds from sale of equipment 458,360 894,118
__________ __________
Net cash used in investing activities (1,155,222) (35,799)
__________ __________
Cash flows from financing activities:
Redemptions of capital (267,260) (74,380)
Distributions (480,000) (4,899,943)
__________ __________
Net cash used in financing activities (747,260) (4,974,323)
__________ __________
Decrease in cash and cash equivalents (31,047) (560,905)
Cash and cash equivalents, beginning
of period 3,068,308 4,776,517
__________ __________
Cash and cash equivalents, end of period $3,037,261 $4,215,612
========== ==========
The accompanying notes are an integral part of these financial statements.
5
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(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
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 52 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 deter-
mine 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, $176,787 and
$108,770 was charged to write-down of equipment to net realizable value for
the six months ended June 30, 1996 and 1995, respectively. 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 June 30, 1996 is as
follows:
Net minimum lease payments to be received $280,000
Less unearned income 34,000
Add expected future residuals -
________
$246,000
========
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 June 30, 1996 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1996 $1,349,000 $ 47,000
1997 1,759,000 93,000
1998 611,000 93,000
1999 - 47,000
__________ ________
$3,719,000 $280,000
========== ========
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 only if and when the
Limited Partners have received distributions for the period from January 1,
1989 through the end of the most recent quarter equal to a return for such
period at a rate of 12% per year on the aggregate amount 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 six months ended June 30:
Three Months Ended Six Months Ended
June 30 June 30
1996 1995 1996 1995
____ ____ ____ ____
Management fee $58,223 $83,221 $120,162 $171,368
Reimbursable costs 53,624 49,720 100,898 87,055
Amounts due from related parties at June 30, 1996 and December 31, 1995
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 to the Fund.
Amounts due to related parties at June 30, 1996 and December 31, 1995
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.
7
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
3. SUBSEQUENT EVENT
Cash Distribution:
The General Partner declared and paid a cash distribution of $240,000 in
August 1996 for the three months ended June 30, 1996, to all admitted
partners as of June 30, 1996.
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
Fidelity Leasing Income Fund V, L.P. had revenues of $1,184,146 and
$1,530,827 for the three months ended June 30, 1996 and 1995, respectively
and $2,326,830 and $3,337,558 for the six months ended June 30, 1996 and 1995,
respectively. Rental income from the leasing of computer peripheral equipment
accounted for 81% and 91% of total revenues for the second quarter of 1996 and
1995, respectively and 85% and 86% of total revenues for the six months ended
June 30, 1996 and 1995, respectively. The decrease in revenues is primarily
attributable to a decrease in rental income. In 1996, rental income decreased
by approximately $1,362,000 because of equipment which came off lease and was
re-leased at lower rental rates or sold. This decrease, however, was reduced
by approximately $485,000 of rents generated from equipment purchased since the
second quarter of 1995 as well as rental income recognized on 1995 equipment
purchases for which a full six months was earned in 1996 but only a portion of
the six months was earned in 1995. The Fund recognized a net gain on sale of
equipment of $239,296 for the six months ended June 30, 1996 as compared to
$279,857 for the six months ended June 30, 1995 which also contributed to the
decrease in total revenues in 1996. Furthermore, the decrease in interest
income resulting from lower cash balances available for investment helped
create the decrease in total revenues for the six months ended June 30, 1996 as
compared to 1995.
Expenses were $847,382 and $1,234,845 during the three months ended June
30, 1996 and 1995, respectively and $1,736,152 and $2,579,715 during the six
months ended June 30, 1996 and 1995, respectively. Depreciation expense
comprised 71% and 82% of total expenses during the second quarter of 1996 and
1995, respectively and 73% and 83% of total expenses during the first six
months of 1996 and 1995, respectively. The decrease in expenses between 1996
and 1995 is primarily attributable to a decrease in depreciation expense
because of equipment which came off lease and was terminated or sold since June
of 1995. During 1996, management fee to related party decreased
proportionate to the decrease in rental income which also accounts for the
decrease in total expenses. The overall decrease in expenses was reduced by an
increase in write-down of equipment to net realizable value. Based upon the
review of the recoverability of the undepreciated cost of rental equipment,
$176,787 was charged to operations to write down equipment to its estimated net
realizable value for the six months ended June 30, 1996 as compared to $108,770
for the six months ended June 30, 1995. Any future losses are dependent upon
unanticipated technological developments affecting the computer equipment
industry in subsequent years.
For the three months ended June 30, 1996 and 1995, the Fund had net income
of $336,764 and $295,982, respectively. For the six months ended June 30, 1996
and 1995, the Fund had net income of $590,678 and $757,843, respectively. The
earnings per equivalent limited partnership unit, after earnings allocated to
the General Partner were $13.05 and $9.87 based on a weighted average number of
equivalent limited partnership units outstanding of 25,619 and 28,616 for the
quarter ended June 30, 1996 and 1995, respectively. The earnings per
equivalent limited partnership unit, after earnings allocated to the General
Partner, were $22.79 and $23.60 based on a weighted average number of
equivalent limited partnership units outstanding of 25,712 and 30,624 for the
six months ended June 30, 1996 and 1995, respectively.
9
FIDELITY LEASING INCOME FUND V, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
RESULTS OF OPERATIONS (Continued)
The Fund generated funds from operations of $878,299 and $1,332,638, for
the purpose of determining cash available for distribution and distributed
$240,000 and $1,354,749 to partners in August 1996 and 1995, respectively.
For the six months ended June 30, 1996 and 1995, the Fund generated funds from
operations of $1,790,220 and $2,723,635 and distributed $240,000 and $2,168,995
to partners during the six months ended June 30, 1996 and 1995, respectively
and $240,000 and $1,354,749 in August 1996 and 1995, 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 in prior periods. The Fund purchased $1,613,582 and $1,425,908 of
equipment during the six months ended June 30, 1996 and 1995, 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.
10
Part II: Other Information
FIDELITY LEASING INCOME FUND V, L.P.
June 30, 1996
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: None
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.
8-13-96 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
8-13-96 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
12
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.
By:
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
By:
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
12
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 3,037,261
<SECURITIES> 0
<RECEIVABLES> 375,170
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,412,431
<PP&E> 15,020,604
<DEPRECIATION> 10,815,653
<TOTAL-ASSETS> 7,863,312
<CURRENT-LIABILITIES> 641,809
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,221,503
<TOTAL-LIABILITY-AND-EQUITY> 7,863,312
<SALES> 1,979,377
<TOTAL-REVENUES> 2,326,830
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,736,152
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 590,678
<INCOME-TAX> 0
<INCOME-CONTINUING> 590,678
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 590,678
<EPS-PRIMARY> 22.79
<EPS-DILUTED> 22.79
</TABLE>
