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, 1997
/ / 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.)
7004 W. Butler Pike, 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,
1997 1996
_____________ ____________
Cash and cash equivalents $3,438,980 $3,234,408
Accounts receivable 90,862 203,287
Due from related parties 458 13,627
Equipment under operating leases
(net of accumulated depreciation
of $8,622,859 and $8,893,982,
respectively) 3,593,385 3,902,843
Net investment in direct financing leases 171,289 209,459
Equipment held for sale or lease 48,981 6,182
__________ __________
Total assets $7,343,955 $7,569,806
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 331,142 $ 404,342
Accounts payable - equipment - 19,800
Accounts payable and
accrued expenses 76,498 79,416
Due to related parties 9,992 36,685
__________ __________
Total liabilities 417,632 540,243
Partners' capital 6,926,323 7,029,563
__________ __________
Total liabilities and
partners' capital $7,343,955 $7,569,806
========== ==========
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
1997 1996 1997 1996
____ ____ ____ ____
Income:
Rentals $763,288 $ 958,732 $1,510,162 $1,979,377
Earned income on direct
financing leases 4,028 5,707 8,491 11,811
Interest 41,026 61,327 83,076 92,723
Gain on sale of equipment,
net - 155,599 - 239,296
Other 3,163 2,781 7,747 3,623
________ __________ _________ __________
811,505 1,184,146 1,609,476 2,326,830
________ __________ _________ __________
Expenses:
Depreciation and
amortization 555,640 602,989 1,109,123 1,262,051
Write-down of equipment to
net realizable value 13,457 94,145 60,868 176,787
General and administrative 24,346 35,760 44,687 70,973
General and administrative
to related party 42,784 56,265 84,329 106,179
Management fee to
related party 46,497 58,223 92,009 120,162
Loss on sale of equipment,
net 1,437 - 21,700 -
________ __________ __________ __________
684,161 847,382 1,412,716 1,736,152
________ __________ __________ __________
Net income $127,344 $ 336,764 $ 196,760 $ 590,678
======== ========== ========== ==========
Net income per equivalent
limited partnership unit $ 5.05 $ 13.05 $ 7.75 $ 22.79
======== ========== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 24,929 25,619 24,989 25,712
======== ========== ========== ==========
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, 1997
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1997 $2,421 76,137 $7,027,142 $7,029,563
Cash distributions (3,000) - (297,000) (300,000)
Net income 3,000 - 193,760 196,760
______ ______ __________ __________
Balance, June 30, 1997 $2,421 76,137 $6,923,902 $6,926,323
====== ====== ========== ==========
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, 1997 and 1996
(Unaudited)
1997 1996
________ ________
Cash flows from operating activities:
Net income $ 196,760 $ 590,678
__________ __________
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 1,109,123 1,262,051
Write-down of equipment to net
realizable value 60,868 176,787
Proceeds from direct financing leases,
net of earned income 38,170 34,849
(Gain) loss on sale of equipment, net 21,700 (239,296)
(Increase) decrease in accounts receivable 112,425 (27,775)
(Increase) decrease in due from related parties 13,169 150,869
Increase (decrease) in lease rents paid
in advance (73,200) 36,591
Increase (decrease) in accounts payable-
equipment (19,800) -
Increase (decrease) in accounts payable and
accrued expenses (2,918) (101,575)
Increase (decrease) in due to related parties (26,693) (11,744)
__________ __________
1,232,844 1,280,757
__________ __________
Net cash provided by operating activities 1,429,604 1,871,435
__________ __________
Cash flows from investing activities:
Acquisition of equipment (1,023,941) (1,613,582)
Proceeds from sale of equipment 98,909 458,360
__________ __________
Net cash used in investing activities (925,032) (1,155,222)
__________ __________
Cash flows from financing activities:
Redemptions of capital - (267,260)
Distributions (300,000) (480,000)
__________ __________
Net cash used in financing activities (300,000) (747,260)
__________ __________
Increase (decrease) in cash and cash
equivalents 204,572 (31,047)
Cash and cash equivalents, beginning
of period 3,234,408 3,068,308
__________ __________
Cash and cash equivalents, end of period $3,438,980 $3,037,261
========== ==========
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, 1997
(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 1996 financial statements have been
reclassified to conform to the presentation in 1997.
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 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, $60,868 and
$176,787 was charged to write-down of equipment to net realizable value for
the six months ended June 30, 1997 and 1996, 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, 1997 is as
follows:
Net minimum lease payments to be received $187,000
Less unearned income 15,000
Add expected future residual -
________
$172,000
========
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, 1997 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1997 $1,291,000 $ 47,000
1998 1,462,000 93,000
1999 273,000 47,000
2000 10,000 -
__________ ________
$3,036,000 $187,000
========== ========
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 parent company 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 parent company during the three and six months ended
June 30:
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
____ ____ ____ ____
Management fee $46,497 $58,223 $92,009 $120,162
Reimbursable costs 42,784 56,265 84,329 106,179
The Fund maintains its checking and investment accounts in Jefferson Bank,
a subsidiary of JeffBanks, Inc. in which the chairman of Resource America,
Inc. serves as a director.
Amounts due from related parties at June 30, 1997 and December 31, 1996
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, 1997 and December 31, 1996
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. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $150,000 in
August 1997 for the three months ended June 30, 1997, to all admitted
partners as of June 30, 1997.
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 $811,505 and
$1,184,146 for the three months ended June 30, 1997 and 1996, respectively
and $1,609,476 and $2,326,830 for the six months ended June 30, 1997 and 1996,
respectively. Rental income from the leasing of computer equipment accounted
for 94% and 81% of total revenues for the second quarter of 1997 and
1996, respectively and 94% and 85% of total revenues for the six months ended
June 30, 1997 and 1996, respectively. The decrease in revenues is primarily
attributable to a decrease in rental income. In 1997, rental income decreased
by approximately $1,076,000 because of equipment which came off lease and was
re-leased at lower rental rates or sold. This decrease, however, was reduced
by approximately $607,000 of rents generated from equipment purchased since the
second quarter of 1996 as well as rental income recognized on 1996 equipment
purchases for which a full six months was earned in 1997 but only a portion of
the six months was earned in 1996. Additionally, the Fund recognized a net
gain on sale of equipment of $-0- for the six months ended June 30, 1997 as
compared to $239,296 for the six months ended June 30, 1996 which also
contributed to the decrease in total revenues in 1997.
Expenses were $684,161 and $847,382 during the three months ended June
30, 1997 and 1996, respectively and $1,412,716 and $1,736,152 during the six
months ended June 30, 1997 and 1996, respectively. Depreciation expense
comprised 81% and 71% of total expenses during the second quarter of 1997 and
1996, respectively and 79% and 73% of total expenses during the first six
months of 1997 and 1996, respectively. The decrease in expenses between 1997
and 1996 is primarily attributable to a decrease in depreciation expense
because of equipment which came off lease and was terminated or sold since June
of 1996. Additionally, the decrease in write-down of equipment to net
realizable value contributed to the overall decrease in expenses in 1997.
Based upon the review of the recoverability of the undepreciated cost of rental
equipment, $60,868 was charged to operations to write down equipment to its
estimated net realizable value for the six months ended June 30, 1997 as
compared to $176,787 for the six months ended June 30, 1996. Any future losses
are dependent upon unanticipated technological developments affecting the
computer equipment industry in subsequent years. During 1997, management fee
to related party decreased proportionate to the decrease in rental income which
also accounts for the decrease in total expenses. The overall amount of
decrease in expenses was mitigated by the net loss on sale of equipment
incurred of $21,700 for the six months ended June 30, 1997 as compared to $-0-
for the six months ended June 30, 1996.
For the three months ended June 30, 1997 and 1996, the Fund had net income
of $127,344 and $336,764, respectively. For the six months ended June 30, 1997
and 1996, the Fund had net income of $196,760 and $590,678, respectively. The
earnings per equivalent limited partnership unit, after earnings allocated to
the General Partner were $5.05 and $13.05 based on a weighted average number
of equivalent limited partnership units outstanding of 24,929 and 25,619 for
the quarter ended June 30, 1997 and 1996, respectively. The earnings per
equivalent limited partnership unit, after earnings allocated to the General
Partner, were $7.75 and $22.79 based on a weighted average number of
equivalent limited partnership units outstanding of 24,989 and 25,712 for the
six months ended June 30, 1997 and 1996, 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 $697,878 and $878,299, for
the purpose of determining cash available for distribution and distributed
$150,000 and $240,000 to partners in August 1997 and 1996, respectively.
For the six months ended June 30, 1997 and 1996, the Fund generated funds from
operations of $1,388,451 and $1,790,220 and distributed $150,000 and $240,000
to partners during the six months ended June 30, 1997 and 1996, respectively
and $150,000 and $240,000 in August 1997 and 1996, 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 the process of dissolution during 1997. As provided in
the Restated Limited Partnership Agreement, the assets of the Fund shall be
liquidated as promptly as is consistent with obtaining their fair value.
During this time, the Fund will continue to purchase computer equipment with
cash available from operations which was not distributed to partners for terms
consistent with the plan of dissolution. The Fund purchased $1,023,941 and
$1,613,582 of equipment during the six months ended June 30, 1997 and 1996,
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, 1997
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.
8-13-97 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
8-13-97 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-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 3,438,980
<SECURITIES> 0
<RECEIVABLES> 91,320
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,530,300
<PP&E> 12,265,225
<DEPRECIATION> 8,622,859
<TOTAL-ASSETS> 7,343,955
<CURRENT-LIABILITIES> 417,632
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,926,323
<TOTAL-LIABILITY-AND-EQUITY> 7,343,955
<SALES> 1,510,162
<TOTAL-REVENUES> 1,609,476
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,412,716
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 196,760
<INCOME-TAX> 0
<INCOME-CONTINUING> 196,760
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 196,760
<EPS-PRIMARY> 7.75
<EPS-DILUTED> 7.75
</TABLE>
