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, 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)
7004 West Butler 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,
1997 1996
_____________ _____________
Cash and cash equivalents $4,046,308 $3,234,408
Accounts receivable 112,908 203,287
Due from related parties 5,221 13,627
Equipment under operating leases
(net of accumulated depreciation
of $6,783,635 and $8,893,982,
respectively) 3,020,585 3,902,843
Net investment in direct financing leases 151,545 209,459
Equipment held for sale or lease 48,929 6,182
__________ __________
Total assets $7,385,496 $7,569,806
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 324,593 $ 404,342
Accounts payable - equipment - 19,800
Accounts payable and
accrued expenses 74,724 79,416
Due to related parties 12,445 36,685
__________ __________
Total liabilities 411,762 540,243
Partners' capital 6,973,734 7,029,563
__________ __________
Total liabilities and
partners' capital $7,385,496 $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 Nine Months Ended
September 30 September 30
1997 1996 1997 1996
____ ____ ____ ____
Income:
Rentals $938,700 $ 864,394 $2,448,862 $2,843,772
Earned income on direct
financing leases 3,585 5,302 12,076 17,113
Interest 45,586 24,698 128,662 117,421
Gain on sale of equipment,
net - 193,637 - 432,934
Other 3,473 57,538 11,220 61,162
________ __________ __________ __________
991,344 1,145,569 2,600,820 3,472,402
________ __________ __________ __________
Expenses:
Depreciation 496,075 569,860 1,605,198 1,831,911
Write-down of equipment to
net realizable value - 109,044 60,868 285,831
General and administrative 20,102 60,770 64,789 131,742
General and administrative to
related party 32,170 46,902 116,499 153,082
Management fee to related
party 57,022 52,564 149,031 172,726
Loss on sale of equipment,
net 188,564 - 210,264 -
________ __________ __________ __________
793,933 839,140 2,206,649 2,575,292
________ __________ __________ __________
Net income $197,411 $ 306,429 $ 394,171 $ 897,110
======== ========== ========== ==========
Net income per equivalent
limited partnership unit $ 7.82 $ 11.89 $ 15.60 $ 34.67
======== ========== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 24,978 25,570 24,986 25,665
======== ========== ========== ==========
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, 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 (4,500) - (445,500) (450,000)
Net income 4,500 - 389,671 394,171
_______ ______ ___________ ___________
Balance, September 30, 1997 $2,421 76,137 $6,971,313 $6,973,734
====== ====== ========== ==========
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, 1997 and 1996
(Unaudited)
1997 1996
____ ____
Cash flows from operating activities:
Net income $ 394,171 $ 897,110
__________ __________
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 1,605,198 1,831,911
Write down of equipment to
net realizable value 60,868 285,831
Proceeds from direct financing leases,
net of earned income 57,914 52,876
(Gain) loss on sale of equipment, net 210,264 (432,934)
(Increase) decrease in accounts receivable 90,379 91,707
(Increase) decrease in interest receivable - (31,460)
(Increase) decrease in due from
related parties 8,406 (43,681)
Increase (decrease) in lease rents paid
in advance (79,749) (19,755)
Increase (decrease) in accounts payable -
equipment (19,800) -
Increase (decrease) in accounts payable and
accrued expenses (4,692) (135,065)
Increase (decrease) in due to
related parties (24,240) (4,247)
__________ __________
1,904,548 1,595,183
__________ __________
Net cash provided by operating activities 2,298,719 2,492,293
__________ __________
Cash flows from investing activities:
Acquisition of equipment (1,239,346) (3,053,333)
Proceeds from sale of equipment 202,527 970,239
__________ __________
Net cash used in investing activities (1,036,819) (2,083,094)
__________ __________
Cash flows from financing activities:
Redemptions of capital - (267,261)
Distributions (450,000) (720,000)
__________ __________
Net cash used in financing activities (450,000) (987,261)
__________ __________
Increase (decrease) in cash and
cash equivalents 811,900 (578,062)
Cash and cash equivalents, beginning
of period 3,234,408 3,068,308
__________ __________
Cash and cash equivalents, end of period $4,046,308 $2,490,246
========== ==========
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, 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
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 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, $60,868 and $285,831 was charged to write-
down of equipment to net realizable value for the nine months ended
September 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 September 30, 1997 is
as follows:
Net minimum lease payments to be received $163,000
Less unearned income 12,000
Add expected future residuals -
________
$151,000
========
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, 1997 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1997 $ 564,000 $ 23,000
1998 1,433,000 93,000
1999 316,000 47,000
2000 10,000 -
__________ ________
$2,323,000 $163,000
========== ========
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 nine months
ended September 30, 1997 and 1996:
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
____ ____ ____ ____
Management fee $57,022 $52,564 $149,031 $172,726
Reimbursable costs 32,170 46,902 116,499 153,082
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 September 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.
7
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (Continued)
Amounts due to related parties at September 30, 1997 and December 31, 1996
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.
3. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $150,000 in
November 1997 for the three months ended September 30, 1997, to all
admitted partners as of September 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 $991,344 and
$1,145,569 for the three months ended September 30, 1997 and 1996, respec-
tively, and $2,600,820 and $3,472,402 for the nine months ended September 30,
1997 and 1996, respectively. Rental income from the leasing of computer
equipment accounted for 95% and 75% of total revenues for the third quarter of
1997 and 1996, respectively and 94% and 82% of total revenues for the nine
months ended September 30, 1997 and 1996, respectively. The decrease in
revenues is partly attributable to a decrease in rental income. In 1997,
rental income decreased by approximately $1,149,000 because of equipment which
came off lease and was re-leased at lower rental rates or sold. This decrease,
however, was reduced by approximately $754,000 of rents generated from
equipment purchased since the third quarter of 1996 as well as rental income
earned on 1996 equipment purchases for which a full nine months was earned in
1997 but only a portion of the nine months was earned in 1996. Additionally,
there was $-0- of net gain on sale of equipment recognized for the nine months
ended September 30, 1997 compared to $432,934 of net gain on sale of equipment
for the nine months ended September 30, 1996 which also accounts for the
decrease in total revenues in 1997.
Expenses were $793,933 and $839,140 for the three months ended Septem-
ber 30, 1997 and 1996, respectively and $2,206,649 and $2,575,292 for the nine
months ended September 30, 1997 and 1996, respectively. Depreciation expense
comprised 62% and 68% of total expenses during the third quarter of 1997 and
1996, respectively and 73% and 71% of total expenses during the first nine
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. Addi-
tionally, the decrease in the write-down of equipment to net realizable value
also caused the decrease in overall expenses in 1997. Based upon the quarterly
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 nine months ended September 30, 1997 as compared to
$285,831 for the nine months ended September 30, 1996. Any future losses are
dependent upon unanticipated technological developments affecting the computer
equipment industry in subsequent years. Furthermore, the general and adminis-
trative expense and general and administrative expense to related party
incurred by the Fund decreased during 1997 which also accounts for the decrease
in total expenses compared to 1996. However, the Fund recorded a net loss on
sale of equipment of $210,264 for the nine months ended September 30, 1997 as
compared to $-0- for the corresponding period in 1996. This loss reduced the
overall decrease in expenses in the current year.
For the three months ended September 30, 1997 and 1996, the Fund had net
income of $197,411 and $306,429, respectively. For the nine months ended
September 30, 1997 and 1996, the Fund had net income of $394,171 and
$897,110, respectively. The earnings per equivalent limited partnership
unit, after earnings allocated to the General Partner were $7.82 and $11.89
based on a weighted average number of equivalent limited partnership units
outstanding of 24,978 and 25,570 for the quarter ended September 30, 1997 and
1996, respectively. The earnings per equivalent limited partnership unit,
after earnings allocated to the General Partner, were $15.60 and $34.67 based
on a weighted average number of equivalent limited partnership units outstand-
ing of 24,986 and 25,665 for the nine months ended September 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
RESULTS OF OPERATIONS (Continued)
The Fund generated cash from operations of $882,050 and $791,696, for
the purpose of determining cash available for distribution and distributed
$150,000 and $240,000 to partners in November 1997 and 1996, respectively.
For the nine months ended September 30, 1997 and 1996, the Fund generated cash
from operations of $2,270,501 and $2,581,918 and distributed $300,000 and
$480,000 to partners during the nine months ended September 30, 1997 and
1996, respectively and $150,000 and $240,000 in November 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 to purchase computer equipment, with cash available from
operations and sales proceeds which were not distributed to partners. The Fund
purchased $1,239,346 and $3,053,333 of equipment during the nine months ended
September 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.
September 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.
11/13/97 By: Freddie M. Kotek
________ _____________________________
Date Freddie M. Kotek
President of F.L. Partnership Management, Inc.
(Principal Operating Officer)
11/13/97 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.
_______ _____________________________
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
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 4,046,308
<SECURITIES> 0
<RECEIVABLES> 118,129
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,164,437
<PP&E> 9,853,149
<DEPRECIATION> 6,783,635
<TOTAL-ASSETS> 7,385,496
<CURRENT-LIABILITIES> 411,762
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,973,734
<TOTAL-LIABILITY-AND-EQUITY> 7,385,496
<SALES> 2,448,862
<TOTAL-REVENUES> 2,600,820
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,206,649
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 394,171
<INCOME-TAX> 0
<INCOME-CONTINUING> 394,171
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 394,171
<EPS-PRIMARY> 15.60
<EPS-DILUTED> 15.60
</TABLE>
