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, 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)
Seven East Skippack Pike, Ambler, PA 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)
September 30, December 31,
1996 1995
_____________ _____________
Cash and cash equivalents $2,490,246 $3,068,308
Accounts receivable 172,148 263,855
Interest receivable 41,826 10,366
Due from related parties 267,724 224,043
Equipment under operating leases
(net of accumulated depreciation
of $8,246,274 and $16,370,416,
respectively) 4,635,611 4,235,949
Net investment in direct financing leases 227,903 280,779
Equipment held for sale or lease 11,946 13,322
__________ __________
Total assets $7,847,404 $8,096,622
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 444,975 $ 464,730
Accounts payable and
accrued expenses 114,495 241,637
Due to related parties - 12,170
__________ __________
Total liabilities 559,470 718,537
Partners' capital 7,287,934 7,378,085
__________ __________
Total liabilities and
partners' capital $7,847,404 $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 Nine Months Ended
September 30 September 30
1996 1995 1996 1995
____ ____ ____ ____
Income:
Rentals $ 864,394 $1,382,282 $2,843,772 $4,239,127
Earned income on direct
financing leases 5,302 24,944 17,113 58,502
Interest 24,698 53,801 117,421 176,606
Gain on sale of equipment,
net 193,637 743,166 432,934 1,023,022
Other 57,538 574 61,162 45,068
__________ __________ __________ __________
1,145,569 2,204,767 3,472,402 5,542,325
__________ __________ __________ __________
Expenses:
Depreciation 569,860 878,741 1,831,911 3,015,620
Write-down of equipment to
net realizable value 109,044 6,161 285,831 114,931
General and administrative 63,411 6,251 139,665 81,894
General and administrative to
related party 44,261 24,268 145,159 111,323
Management fee to related
party 52,564 94,487 172,726 265,855
__________ __________ __________ __________
839,140 1,009,908 2,575,292 3,589,623
__________ __________ __________ __________
Net income $ 306,429 $1,194,859 $ 897,110 $1,952,702
========== ========== ========== ==========
Net income per equivalent
limited partnership unit $ 11.89 $ 43.73 $ 34.67 $ 64.86
========== ========== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 25,570 27,205 25,665 29,484
========== ========== ========== ==========
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, 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) (267,261) (267,261)
Cash distributions (7,200) - (712,800) (720,000)
Net income 7,200 - 889,910 897,110
_______ ______ ___________ ___________
Balance, September 30, 1996 $ 3,321 76,137 $7,284,613 $7,287,934
======= ====== ========== ==========
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, 1996 and 1995
(Unaudited)
1996 1995
____ ____
Cash flows from operating activities:
Net income $ 897,110 $1,952,702
__________ __________
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 1,831,911 3,015,620
Write down of equipment to
net realizable value 285,831 114,931
Proceeds from direct financing leases,
net of earned income 52,876 485,033
Gain on sale of equipment, net (432,934) (1,023,022)
(Increase) decrease in accounts receivable 91,707 129,148
(Increase) decrease in interest receivable (31,460) -
(Increase) decrease in due from
related parties (43,681) 25,304
Increase (decrease) in lease rents paid
in advance (19,755) 169,735
Increase (decrease) in accounts payable -
equipment - 532,667
Increase (decrease) in accounts payable and
accrued expenses (127,142) (12,282)
Increase (decrease) in other, net (12,170) 40,134
__________ __________
1,595,183 3,477,268
__________ __________
Net cash provided by operating activities 2,492,293 5,429,970
__________ __________
Cash flows from investing activities:
Acquisition of equipment (3,053,333) (2,641,328)
Maturity of investment securities held
to maturity - 495,991
Proceeds from sale of equipment 970,239 2,308,153
__________ __________
Net cash provided by (used in)
investing activities (2,083,094) 162,816
__________ __________
Cash flows from financing activities:
Redemptions of capital (267,261) (76,387)
Distributions (720,000) (6,254,693)
__________ __________
Net cash used in financing activities (987,261) (6,331,080)
__________ __________
Decrease in cash and cash equivalents (578,062) (738,294)
Cash and cash equivalents, beginning
of period 3,068,308 4,776,517
__________ __________
Cash and cash equivalents, end of period $2,490,246 $4,038,223
========== ==========
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, 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. Certain amounts on the 1995 financial statements have been
reclassified to conform to the presentation in 1996.
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 48 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, $285,831 and
$114,931 was charged to write-down of equipment to net realizable value for
the nine months ended September 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 September 30, 1996 is
as follows:
Net minimum lease payments to be received $257,000
Less unearned income 29,000
Add expected future residuals -
________
$228,000
========
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, 1996 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1996 $ 805,000 $ 24,000
1997 2,162,000 93,000
1998 1,040,000 93,000
1999 234,000 47,000
__________ ________
$4,241,000 $257,000
========== ========
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 nine months ended Sep-
tember 30:
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
____ ____ ____ ____
Management fee $52,564 $94,487 172,726 $265,855
Reimbursable costs 44,261 24,268 145,159 111,323
Amounts due from related parties at September 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 the Fund.
The amount due to related parties at December 31, 1995 represents monies
due to the General Partner for the fees and costs mentioned 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
November 1996 for the three months ended September 30, 1996, to all
admitted partners as of September 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 $1,145,569 and
$2,204,767 for the three months ended September 30, 1996 and 1995,
respectively, and $3,472,402 and $5,542,325 for the nine months ended September
30, 1996 and 1995, respectively. Rental income from the leasing of computer
peripheral equipment accounted for 75% and 63% of total revenues for the third
quarter of 1996 and 1995, respectively and 82% and 76% of total revenues for
the nine months ended September 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 $1,968,000 because of equipment which
came off lease and was re-leased at lower rental rates or sold. This decrease,
however, was reduced by approximately $573,000 of rents generated from
equipment purchased since the third quarter of 1995 as well as rental income
earned on 1995 equipment purchases for which a full nine months was earned in
1996 but only a portion of the nine months was earned in 1995. Additionally,
the Fund recognized a net gain on sale of equipment of $432,934 for the nine
months ended September 30, 1996 compared to $1,023,022 for the nine months
ended September 30, 1995 which also accounts for the decrease in total revenues
in 1996. Furthermore, interest income decreased in 1996 because of lower cash
balances available for investment during 1996 as compared to 1995.
Expenses were $839,140 and $1,009,908 for the three months ended Septem-
ber 30, 1996 and 1995, respectively and $2,575,292 and $3,589,623 for the nine
months ended September 30, 1996 and 1995, respectively. Depreciation expense
comprised 68% and 87% of total expenses during the third quarter of 1996 and
1995, respectively and 71% and 84% of total expenses during the first nine
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. Addi-
tionally, during 1996, management fee to related party decreased proportion-
ately 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
the write-down of equipment to net realizable value. Based upon the quarterly
review of the recoverability of the undepreciated cost of rental equipment,
$285,831 was charged to operations to write down equipment to its estimated net
realizable value for the nine months ended September 30, 1996 as compared to
$114,931 for the nine months ended September 30, 1995. Any future losses are
dependent upon unanticipated technological developments affecting the computer
equipment industry in subsequent years.
For the three months ended September 30, 1996 and 1995, the Fund had net
income of $306,429 and $1,194,859, respectively. For the nine months ended
September 30, 1996 and 1995, the Fund had net income of $897,110 and
$1,952,702, respectively. The earnings per equivalent limited partnership
unit, after earnings allocated to the General Partner were $11.89 and $43.73
based on a weighted average number of equivalent limited partnership units
outstanding of 25,570 and 27,205 for the quarter ended September 30, 1996 and
1995, respectively. The earnings per equivalent limited partnership unit,
after earnings allocated to the General Partner, were $34.67 and $64.86 based
on a weighted average number of equivalent limited partnership units outstand-
ing of 25,665 and 29,484 for the nine months ended September 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
RESULTS OF OPERATIONS (Continued)
The Fund generated funds from operations of $791,696 and $1,336,595, for
the purpose of determining cash available for distribution and distributed
$240,000 and $506,295 to partners in November 1996 and 1995, respectively.
For the nine months ended September 30, 1996 and 1995, the Fund generated funds
from operations of $2,581,918 and $4,060,231 and distributed $480,000 and
$3,523,744 to partners during the nine months ended September 30, 1996 and
1995, respectively and $240,000 and $506,295 in November 1996 and 1995,
respectively. For financial statement purposes, the Fund records cash
distributions to partners on a cash basis in the period in which they are paid.
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 $3,053,333 and $2,641,328 of equipment during the
nine months ended September 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.
September 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.
11-12-96 By: Freddie M. Kotek
________ _____________________________
Date Freddie M. Kotek
President of F.L. Partnership Management, Inc.
(Principal Operating Officer)
11-12-96 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.
_______ _____________________________
Date Freddie M. Kotek
President of F.L. Partnership Management, Inc.
(Principal Operating Officer)
_______ _____________________________
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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,490,246
<SECURITIES> 0
<RECEIVABLES> 481,698
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,971,944
<PP&E> 12,893,831
<DEPRECIATION> 8,246,274
<TOTAL-ASSETS> 7,847,404
<CURRENT-LIABILITIES> 559,470
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,287,934
<TOTAL-LIABILITY-AND-EQUITY> 7,847,404
<SALES> 2,843,772
<TOTAL-REVENUES> 3,472,402
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,575,292
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 897,110
<INCOME-TAX> 0
<INCOME-CONTINUING> 897,110
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 897,110
<EPS-PRIMARY> 34.67
<EPS-DILUTED> 34.67
</TABLE>
