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, 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.)
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,
1997 1996
_____________ ____________
Cash and cash equivalents $3,684,080 $3,234,408
Accounts receivable 106,720 203,287
Due from related parties 230,815 13,627
Equipment under operating leases
(net of accumulated depreciation
of $8,093,204 and $8,893,982,
respectively) 4,162,481 3,902,843
Net investment in direct financing leases 190,591 209,459
Equipment held for sale or lease 89,196 6,182
__________ __________
Total assets $8,463,883 $7,569,806
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 399,893 $ 404,342
Accounts payable - equipment 982,452 19,800
Accounts payable and
accrued expenses 119,759 79,416
Due to related parties 12,800 36,685
__________ __________
Total liabilities 1,514,904 540,243
Partners' capital 6,948,979 7,029,563
__________ __________
Total liabilities and
partners' capital $8,463,883 $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
For the three months ended March 31, 1997 and 1996
(Unaudited)
1997 1996
________ ________
Income:
Rentals $746,874 $1,020,645
Earned income on direct financing leases 4,463 6,104
Interest 42,050 31,396
Gain on sale of equipment, net - 83,697
Other 4,584 842
________ __________
797,971 1,142,684
________ __________
Expenses:
Depreciation 553,483 659,062
Write-down of equipment to net
realizable value 47,411 82,642
General and administrative 20,341 35,210
General and administrative to related
party 41,545 49,917
Management fee to related party 45,512 61,939
Loss on sale of equipment, net 20,263 -
________ __________
728,555 888,770
________ __________
Net income $ 69,416 $ 253,914
======== ==========
Net income per equivalent
limited partnership unit $ 2.71 $ 9.75
======== ==========
Weighted average number of
equivalent limited partnership
units outstanding during the period 25,048 25,806
======== ==========
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, 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 (1,500) - (148,500) (150,000)
Net income 1,500 - 67,916 69,416
______ ______ __________ __________
Balance, March 31, 1997 $2,421 76,137 $6,946,558 $6,948,979
====== ====== ========== ==========
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, 1997 and 1996
(Unaudited)
1997 1996
________ ________
Cash flows from operating activities:
Net income $ 69,416 $ 253,914
__________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 553,483 659,062
Write-down of equipment to net
realizable value 47,411 82,642
Proceeds from direct financing leases,
net of earned income 18,868 17,226
(Gain) loss on sale of equipment, net 20,263 (83,697)
(Increase) decrease in accounts receivable 96,567 54,561
(Increase) decrease in due from related parties(217,188) 180,342
Increase (decrease) in lease rents paid
in advance (4,449) 97,251
Increase (decrease) in accounts payable and
accrued expenses 40,343 124,126
Increase (decrease) in accounts payable -
equipment 962,652 19,800
Increase (decrease) in due to related parties (23,885) (4,991)
Increase (decrease) in other, net - (9,603)
__________ __________
1,494,065 1,136,719
__________ __________
Net cash provided by operating activities 1,563,481 1,390,633
__________ __________
Cash flows from investing activities:
Acquisition of equipment (1,023,759) -
Proceeds from sale of equipment 59,950 97,370
__________ __________
Net cash provided by (used in)
investing activities (963,809) 97,370
__________ __________
Cash flows from financing activities:
Distributions (150,000) (240,000)
Redemptions of capital - (267,260)
__________ __________
Net cash used in financing activities (150,000) (507,260)
__________ __________
Increase in cash and cash equivalents 449,672 980,743
Cash and cash equivalents, beginning
of period 3,234,408 3,068,308
__________ __________
Cash and cash equivalents, end of period $3,684,080 $4,049,051
========== ==========
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, 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 equipment under operating
leases. A majority of the equipment was manufactured by IBM. The lessees
have agreements with the manufacturer to provide maintenance 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, $47,411 and $82,642 was charged to write-
down of equipment to net realizable value for the three months ended
March 31, 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 March 31, 1997 is as
follows:
Net minimum lease payments to be received $210,000
Less unearned income 19,000
Add expected future residuals -
________
$191,000
========
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 and direct financing leases as of March 31, 1997 are as
follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1997 $2,020,000 $ 70 000
1998 1,871,000 93,000
1999 273,000 47,000
2000 10,000 -
__________ ________
$4,174,000 $210,000
========== ========
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 months ended
March 31:
1997 1996
________ ________
Management fee $45,512 $61,939
Reimbursable costs 41,545 49,917
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 March 31, 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 March 31, 1997 and December 31, 1996
represent monies due to the General Partner and/or its parent company 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. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $150,000
in May 1997 for the three months ended March 31, 1997, to all admitted
partners as of March 31, 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 $797,971 and
$1,142,684 for the three months ended March 31, 1997 and 1996, respectively.
Rental income from the leasing of computer equipment accounted for
94% and 89% of total revenues for the first quarter of 1997 and 1996, respec-
tively. The decrease in revenues is primarily attributable to a decrease in
rental income. In 1997, rental income decreased by approximately $589,000
because of equipment which came off lease and was re-leased at lower rental
rates or sold. This decrease, however, was reduced by approximately $315,000
of rents generated from equipment purchased since the first quarter of 1996.
Additionally, the Fund recognized a net gain on sale of equipment of $-0- and
$83,697 for the quarter ended March 31, 1997 and 1996, respectively, which also
contributed to the decrease in revenues in 1997.
Expenses were $728,555 and $888,770 during the three months ended March
31, 1997 and 1996, respectively. Depreciation expense comprised 76% and 74% of
total expenses during the first quarter 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 March of 1996. Additionally, the decrease in
write-down of equipment to net realizable value contributed to the overall
decrease in expenses. Based upon the review of the recoverability of the
undepreciated cost of rental equipment, $47,411 was charged to operations to
write down equipment to its estimated net realizable value for the three months
ended March 31, 1997 as compared to $82,642 for the three months ended March
31, 1996. Any future losses are dependent upon unanticipated technological
developments affecting the computer equipment industry in subsequent years.
The overall amount of decrease in expenses was mitigated due to the Fund
recognizing a net loss on the sale of equipment of $20,263 for the first
quarter of 1997 as compared to $-0- for the first quarter of 1996.
For the three months ended March 31, 1997 and 1996, the Fund's net income
was $69,416 and $253,914, respectively. The earnings per equivalent limited
partnership unit, after earnings allocated to the General Partner were $2.71
and $9.75 based on a weighted average number of equivalent limited partnership
units outstanding of 25,048 and 25,806 for the quarter ended March 31, 1997 and
1996, respectively.
The Fund generated funds from operations of $690,573 and $911,921, for
the purpose of determining cash available for distribution and distributed
$150,000 and $240,000 to partners for the first quarter of 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.
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 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. During the quarter ended March 31,
1997, the Fund purchased $1,023,759 of equipment.
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, 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: 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.
5-14-97 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
5-14-97 By: Marianne T. Schuster
_______ ___________________________
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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 3,684,080
<SECURITIES> 0
<RECEIVABLES> 337,535
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,021,615
<PP&E> 12,344,881
<DEPRECIATION> 8,093,204
<TOTAL-ASSETS> 8,463,883
<CURRENT-LIABILITIES> 1,514,904
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,948,979
<TOTAL-LIABILITY-AND-EQUITY> 8,463,883
<SALES> 746,874
<TOTAL-REVENUES> 797,971
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 728,555
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 69,416
<INCOME-TAX> 0
<INCOME-CONTINUING> 69,416
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 69,416
<EPS-PRIMARY> 2.71
<EPS-DILUTED> 2.71
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