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, 1998
/ / 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.)
3 North Columbus Boulevard, Philadelphia, Pennsylvania 19106
_______________________________________________________________________________
(Address of principal executive offices) (Zip code)
(215) 574-1636
_______________________________________________________________________________
(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,
1998 1997
__________ ____________
Cash and cash equivalents $2,955,794 $3,679,630
Accounts receivable 367,245 193,525
Due from related parties 123,349 158,700
Equipment under operating leases
(net of accumulated depreciation
of $7,574,185 and $7,078,588,
respectively) 4,837,930 3,423,328
Equipment held for sale or lease 182 182
__________ __________
Total assets $8,284,500 $7,455,365
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 236,867 $ 253,242
Accounts payable - equipment 692,514 -
Accounts payable and
accrued expenses 254,163 109,888
Due to related parties 17,167 28,167
__________ __________
Total liabilities 1,200,711 391,297
Partners' capital 7,083,789 7,064,068
__________ __________
Total liabilities and
partners' capital $8,284,500 $7,455,365
========== ==========
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, 1998 and 1997
(Unaudited)
1998 1997
________ _________
Income:
Rentals $891,246 $746,874
Earned income on direct financing leases - 4,463
Interest 44,785 42,050
Gain on sale of equipment, net 54,500 -
Other 1,383 4,584
________ ________
991,914 797,971
________ ________
Expenses:
Depreciation 694,951 553,483
Write-down of equipment to net
realizable value - 47,411
General and administrative 32,584 20,341
General and administrative to related
party 43,015 41,545
Management fee to related party 51,643 45,512
Loss on sale of equipment, net - 20,263
________ ________
822,193 728,555
________ ________
Net income $169,721 $ 69,416
======== ========
Net income per equivalent
limited partnership unit $ 6.65 $ 2.71
======== ========
Weighted average number of
equivalent limited partnership
units outstanding during the period 25,267 25,048
======== ========
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, 1998
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1998 $2,766 76,137 $7,061,302 $7,064,068
Cash distributions (1,500) - (148,500) (150,000)
Net income 1,697 - 168,024 169,721
______ ______ __________ __________
Balance, March 31, 1998 $2,963 76,137 $7,080,826 $7,083,789
====== ====== ========== ==========
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, 1998 and 1997
(Unaudited)
1998 1997
________ ________
Cash flows from operating activities:
Net income $ 169,721 $ 69,416
_________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 694,951 553,483
Write-down of equipment to net
realizable value - 47,411
Proceeds from direct financing leases,
net of earned income - 18,868
(Gain) loss on sale of equipment, net (54,500) 20,263
(Increase) decrease in accounts receivable (173,720) 96,567
(Increase) decrease in due from related parties 35,351 (217,188)
Increase (decrease) in lease rents paid
in advance (16,375) (4,449)
Increase (decrease) in accounts payable-
equipment 692,514 962,652
Increase (decrease) in accounts payable and
accrued expenses 144,275 40,343
Increase (decrease) in due to related parties (11,000) (23,885)
__________ __________
1,311,496 1,494,065
__________ __________
Net cash provided by operating activities 1,481,217 1,563,481
__________ __________
Cash flows from investing activities:
Acquisition of equipment (2,109,553) (1,023,759)
Proceeds from sale of equipment 54,500 59,950
__________ __________
Net cash provided by (used in)
investing activities (2,055,053) (963,809)
__________ __________
Cash flows from financing activities:
Distributions (150,000) (150,000)
__________ __________
Net cash used in financing activities (150,000) (150,000)
__________ __________
Increase (decrease) in cash and
cash equivalents (723,836) 449,672
Cash and cash equivalents, beginning
of period 3,679,630 3,234,408
__________ __________
Cash and cash equivalents, end of period $2,955,794 $3,684,080
========== ==========
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, 1998
(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. EQUIPMENT LEASED
Equipment on lease consists primarily of computer equipment under operating
leases. The lessees have agreements with the manufacturer of the equipment
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 consists
primarily of computer equipment under operating leases. 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 was charged to write-down of equipment to net realizable value for
the three months ended March 31, 1997. There was no charge to write-down
of equipment to net realizable value for the three months ended March 31,
1998. Any future losses are dependent upon unanticipated technological
developments affecting the computer equipment industry in subsequent years.
The future approximate minimum rentals to be received on noncancellable
operating leases as of March 31, 1998 are as follows:
Years Ending December 31
________________________
1998 $1,765,000
1999 1,083,000
2000 429,000
__________
$3,277,000
==========
Subsequent to March 31, 1998, the Fund purchased $671,898 of equipment
subject to an operating lease with an initial lease term of 24 months. The
future approximate minimum rentals to be received on this noncancellable
operating lease are $213,543 in 1998, $284,724 in 1999 and $71,181 in 2000.
6
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS
The General Partner receives 6% or 3% of rental payments from equipment
under operating leases and full pay-out leases, respectively, for
administrative and management services performed on behalf of the Fund.
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:
1998 1997
________ ________
Management fee $51,643 $45,512
Reimbursable costs 43,015 41,545
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, 1998 and December 31, 1997
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, 1998 and December 31, 1997
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.
3. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $150,000
in May 1998 for the three months ended March 31, 1998, to all admitted
partners as of March 31, 1998.
7
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 $991,914 and
$797,971 for the three months ended March 31, 1998 and 1997, respectively.
Rental income from the leasing of computer equipment accounted for
90% and 94% of total revenues for the first quarter of 1998 and 1997, respec-
tively. The increase in revenues is primarily attributable to the increase in
rental income. In 1998, rental income increased by approximately $320,000
because of rents generated from equipment purchased since the first quarter of
1997. This increase, however, was reduced by approximately $175,000 because of
equipment which came off lease and was re-leased at lower rental rates or sold.
Additionally, the Fund recognized a net gain on sale of equipment of $54,500
for the quarter ended March 31, 1998 compared to no gain on sale of equipment
for the quarter ended March 31, 1997, which also contributed to the increase in
revenues in 1998.
Expenses were $822,193 and $728,555 during the three months ended March
31, 1998 and 1997, respectively. Depreciation expense comprised 85% and 76% of
total expenses during the first quarter of 1998 and 1997, respectively. The
increase in expenses between 1998 and 1997 is primarily attributable to an
increase in depreciation expense because of equipment purchased since March
1997. However, the decrease in write-down of equipment to net realizable value
helped mitigate the overall increase in expenses. Based upon the review of the
recoverability of the undepreciated cost of rental equipment, there was no
charge to operations to write down equipment to its estimated net realizable
value for the three months ended March 31, 1998 as compared to $47,411 charged
to write-down of equipment to net realizable value for the three months ended
March 31, 1997. Any future losses are dependent upon unanticipated
technological developments affecting the computer equipment industry in
subsequent years. Additionally, the Fund recognized a net gain on sale of
equipment for the quarter ended March 31, 1998 as discussed above but incurred
a net loss on sale of equipment of $20,263 for the quarter ended March 31, 1997
which also reduced the increase in overall expenses in 1998.
For the three months ended March 31, 1998 and 1997, the Fund's net income
was $169,721 and $69,416, respectively. The earnings per equivalent limited
partnership unit, after earnings allocated to the General Partner were $6.65
and $2.71 based on a weighted average number of equivalent limited partnership
units outstanding of 25,267 and 25,048 for the quarter ended March 31, 1998 and
1997, respectively.
The Fund generated cash from operations of $810,172 and $690,573, for
the purpose of determining cash available for distribution and distributed
$150,000 to partners in both May 1998 and 1997 for the first quarter of 1998
and 1997. A cash distribution of $150,000 was paid to partners during the
first quarter of 1998 for the three months ended December 31, 1997. For
financial statement purposes, the Fund records cash distributions to partners
on a cash basis in the period in which they are paid.
8
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 1998. 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 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,
1998 and 1997, the Fund purchased $2,109,553 and $1,023,759 of equipment,
respectively.
Subsequent to March 31, 1998, the Fund purchased $671,898 of equipment for
lease.
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.
9
Part II: Other Information
FIDELITY LEASING INCOME FUND V, L.P.
March 31, 1998
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
10
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.
5-14-98 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
5-14-98 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
11
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 2,955,794
<SECURITIES> 0
<RECEIVABLES> 490,594
<ALLOWANCES> 0
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<COMMON> 0
<OTHER-SE> 7,083,789
<TOTAL-LIABILITY-AND-EQUITY> 8,284,500
<SALES> 891,246
<TOTAL-REVENUES> 991,914
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 822,193
<LOSS-PROVISION> 0
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<INCOME-PRETAX> 169,721
<INCOME-TAX> 0
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<DISCONTINUED> 0
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