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 March 31, 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)
March 31, December 31,
1996 1995
_____________ ____________
Cash and cash equivalents $4,049,051 $3,068,308
Accounts receivable 209,294 263,855
Interest receivable 169 10,366
Due from related parties 43,701 224,043
Equipment under operating leases
(net of accumulated depreciation
of $15,568,144 and $16,370,416,
respectively) 3,467,463 4,235,949
Net investment in direct financing leases 263,553 280,779
Equipment held for sale or lease 26,431 13,322
__________ __________
Total assets $8,059,662 $8,096,622
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 561,981 $ 464,730
Accounts payable and
accrued expenses 365,763 241,637
Due to related parties 7,179 12,170
__________ __________
Total liabilities 934,923 718,537
Partners' capital 7,124,739 7,378,085
__________ __________
Total liabilities and
partners' capital $8,059,662 $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
For the three months ended March 31, 1996 and 1995
(Unaudited)
1996 1995
________ ________
Income:
Rentals $1,020,645 $1,469,476
Earned income on direct financing leases 6,104 17,184
Interest 31,396 65,793
Gain on sale of equipment, net 83,697 250,288
Other 842 3,990
__________ __________
1,142,684 1,806,731
__________ __________
Expenses:
Depreciation 659,062 1,179,424
Write-down of equipment to net
realizable value 82,642 -
General and administrative 37,853 39,964
General and administrative to related
party 47,274 37,335
Management fee to related party 61,939 88,147
__________ __________
888,770 1,344,870
__________ __________
Net income $ 253,914 $ 461,861
========== ==========
Net income per equivalent
limited partnership unit $ 9.75 $ 13.49
========== ==========
Weighted average number of
equivalent limited partnership
units outstanding during the period 25,806 32,631
========== ==========
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 three months ended March 31, 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 (2,400) - (237,600) (240,000)
Net income 2,400 - 251,514 253,914
______ ______ __________ __________
Balance, March 31, 1996 $3,321 76,137 $7,121,418 $7,124,739
====== ====== ========== ==========
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 three months ended March 31, 1996 and 1995
(Unaudited)
1996 1995
________ ________
Cash flows from operating activities:
Net income $ 253,914 $ 461,861
__________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 659,062 1,179,424
Write-down of equipment to net
realizable value 82,642 -
Proceeds from direct financing leases,
net of earned income 17,226 37,148
Gain on sale of equipment, net (83,697) (250,288)
(Increase) decrease in accounts receivable 54,561 (109,761)
(Increase) decrease in due from related parties 180,342 (2,412)
Increase (decrease) in lease rents paid
in advance 97,251 (13,497)
Increase (decrease) in accounts payable and
accrued expenses 124,126 (110,782)
Increase (decrease) in due to related parties (4,991) 78,664
Increase (decrease) in other, net 10,197 16,010
__________ __________
1,136,719 824,506
__________ __________
Net cash provided by operating activities 1,390,633 1,286,367
__________ __________
Cash flows from investing activities:
Acquisition of equipment - (6,297)
Maturity of investment securities held
to maturity - 495,991
Proceeds from sale of equipment 97,370 508,194
__________ __________
Net cash provided by investing activities 97,370 997,888
__________ __________
Cash flows from financing activities:
Distributions (240,000) (2,730,948)
Redemptions of capital (267,260) (69,892)
__________ __________
Net cash used in financing activities (507,260) (2,800,840)
__________ __________
Increase (decrease) in cash and cash
equivalents 980,743 (516,585)
Cash and cash equivalents, beginning
of period 3,068,308 4,776,517
__________ __________
Cash and cash equivalents, end of period $4,049,051 $4,259,932
========== ==========
The accompanying notes are an integral part of these financial statements.
5
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
March 31, 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. ORGANIZATION
In February 1996, the name of the General Partner was changed from Fidelity
Leasing Corporation to F.L. Partnership Management, Inc.
2. 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, $82,642 and
$-0- was charged to write-down of equipment to net realizable value for
the three months ended March 31, 1996 and 1995, 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 March 31, 1996 is as
follows:
Net minimum lease payments to be received $303,286
Less unearned income (39,733)
Add expected future residuals -
________
$263,553
========
6
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. EQUIPMENT LEASED (CONTINUED)
The future approximate minimum rentals to be received on noncancellable
operating leases as of March 31, 1996 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1996 $1,788,000 $70,000
1997 1,098,000 93 000
1998 370,000 93,000
1999 - 47,000
__________ ________
$3,256,000 $303,000
========== ========
3. 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 months ended March 31:
1996 1995
________ ________
Management fee $61,939 $88,147
Reimbursable costs 47,274 37,335
Amounts due from related parties at March 31, 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 March 31, 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)
4. SUBSEQUENT EVENT
Cash Distribution:
The General Partner declared and paid a cash distribution of $240,000 in
May 1996 for the three months ended March 31, 1996, to all admitted
partners as of March 31, 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 $1,142,684 and
$1,806,731 for the three months ended March 31, 1996 and 1995, respectively.
Rental income from the leasing of computer peripheral equipment accounted for
89% and 81% of total revenues for the first quarter of 1996 and 1995, respec-
tively. The decrease in revenues is primarily attributable to a decrease in
rental income. In 1996, rental income decreased by approximately $763,000
because of equipment which came off lease and was re-leased at lower rental
rates or sold. This decrease, however, was reduced by approximately $314,000
of rents generated from equipment purchased since the first quarter of 1995.
Additionally, the Fund recognized a net gain on sale of equipment of $83,697
for the quarter ended March 31, 1996 as compared to $250,288 for the quarter
ended March 31, 1995, which also contributed to the decrease in revenues in
1996. Furthermore, the decrease in interest income resulting from lower cash
balances available for investment helped create the decrease in total revenues
in 1996.
Expenses were $888,770 and $1,344,870 during the three months ended March
31, 1996 and 1995, respectively. Depreciation expense comprised 74% and 88% of
total expenses during the first quarter 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 March of 1995. During the first quarter of 1996,
management fee to related party decreased proportionate to the decrease in
rental income which also contributed to the decrease in total expenses in 1996.
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, $82,642 was charged to
operations to write down equipment to its estimated net realizable value for
the three months ended March 31, 1996 as compared to $-0- for the three months
ended March 31, 1995. 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 March 31, 1996 and 1995, the Fund's net income
was $253,914 and $461,861, respectively. The earnings per equivalent limited
partnership unit, after earnings allocated to the General Partner were $9.75
and $13.49 based on a weighted average number of equivalent limited partnership
units outstanding of 25,806 and 32,631 for the quarter ended March 31, 1996 and
1995, respectively.
The Fund generated funds from operations of $911,921 and $1,390,997, for
the purpose of determining cash available for distribution and distributed
$240,000 and $2,168,995 to partners for the first quarter of 1996 and 1995,
respectively. The distribution for the three months ended March 31, 1995
includes $777,998 of sales proceeds and cash available from prior quarters
which had not been distributed previously.
9
FIDELITY LEASING INCOME FUND V, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (CONTINUED)
ANALYSIS OF FINANCIAL CONDITION
The Fund continues to purchase computer peripheral equipment, with cash
available from operations which was not distributed to partners.
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.
March 31, 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: None
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.
5-14-96 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
5-14-96 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 4,049,051
<SECURITIES> 0
<RECEIVABLES> 253,164
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,302,215
<PP&E> 19,062,038
<DEPRECIATION> 15,568,144
<TOTAL-ASSETS> 8,059,662
<CURRENT-LIABILITIES> 934,923
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,124,739
<TOTAL-LIABILITY-AND-EQUITY> 8,059,662
<SALES> 1,020,645
<TOTAL-REVENUES> 1,142,684
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 888,770
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 253,914
<INCOME-TAX> 0
<INCOME-CONTINUING> 253,914
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 253,914
<EPS-PRIMARY> 9.75
<EPS-DILUTED> 9.75
</TABLE>
