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, 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)
June 30, December 31,
1998 1997
_____________ ____________
Cash and cash equivalents $ 835,184 $3,679,630
Accounts receivable 521,735 193,525
Due from related parties 5,335 158,700
Equipment under operating leases
(net of accumulated depreciation
of $6,375,750 and $7,078,588,
respectively) 4,326,067 3,423,328
Net investment in direct financing leases 305,699 -
Equipment held for sale or lease 1,237,943 182
__________ __________
Total assets $7,231,963 $7,455,365
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 211,142 $ 253,242
Accounts payable and
accrued expenses 90,576 109,888
Due to related parties 303 28,167
__________ __________
Total liabilities 302,021 391,297
Partners' capital 6,929,942 7,064,068
__________ __________
Total liabilities and
partners' capital $7,231,963 $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
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
____ ____ ____ ____
Income:
Rentals $920,251 $763,288 $1,811,497 $1,510,162
Earned income on direct
financing leases 9,139 4,028 9,139 8,491
Interest 23,918 41,026 68,703 83,076
Gain on sale of equipment,
net 9,524 - 64,024 -
Other 2,739 3,163 4,122 7,747
________ ________ _________ __________
965,571 811,505 1,957,485 1,609,476
________ ________ _________ __________
Expenses:
Depreciation 740,905 555,640 1,435,856 1,109,123
Write-down of equipment to
net realizable value 105,000 13,457 105,000 60,868
General and administrative 22,533 24,346 55,117 44,687
General and administrative
to related party 51,259 42,784 94,274 84,329
Management fee to
related party 49,721 46,497 101,364 92,009
Loss on sale of equipment,
net - 1,437 - 21,700
________ ________ __________ __________
969,418 684,161 1,791,611 1,412,716
________ ________ __________ _________
Net income (loss) $ (3,847) $127,344 $ 165,874 $ 196,760
======== ======== ========== ==========
Net income (loss) per equivalent
limited partnership unit $ (.20) $ 5.05 $ 6.46 $ 7.75
======== ======== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 25,267 24,929 25,267 24,989
======== ======== ========== ==========
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, 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 (3,000) - (297,000) (300,000)
Net income 2,750 - 163,124 165,874
______ ______ __________ __________
Balance, June 30, 1998 $2,516 76,137 $6,927,426 $6,929,942
====== ====== ========== ==========
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, 1998 and 1997
(Unaudited)
1998 1997
________ ________
Cash flows from operating activities:
Net income $ 165,874 $ 196,760
__________ __________
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 1,435,856 1,109,123
Write-down of equipment to net
realizable value 105,000 60,868
Proceeds from direct financing leases,
net of earned income 9,281 38,170
(Gain) loss on sale of equipment, net (64,024) 21,700
(Increase) decrease in accounts receivable (328,210) 112,425
(Increase) decrease in due from related parties 153,365 13,169
Increase (decrease) in lease rents paid
in advance (42,100) (73,200)
Increase (decrease) in accounts payable-
equipment - (19,800)
Increase (decrease) in accounts payable and
accrued expenses (19,312) (2,918)
Increase (decrease) in due to related parties (27,864) (26,693)
__________ __________
1,221,992 1,232,844
__________ __________
Net cash provided by operating activities 1,387,866 1,429,604
__________ __________
Cash flows from investing activities:
Acquisition of equipment (4,007,513) (1,023,941)
Proceeds from sale of equipment 75,201 98,909
__________ __________
Net cash used in investing activities (3,932,312) (925,032)
__________ __________
Cash flows from financing activities:
Distributions (300,000) (300,000)
__________ __________
Net cash used in financing activities (300,000) (300,000)
__________ __________
Increase (decrease) in cash and cash
equivalents (2,844,446) 204,572
Cash and cash equivalents, beginning
of period 3,679,630 3,234,408
__________ __________
Cash and cash equivalents, end of period $ 835,184 $3,438,980
========== ==========
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, 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 to provide main-
tenance for the leased equipment. The Fund's operating leases are for
initial lease terms of 9 to 36 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, $105,000 and
$60,868 was charged to write-down of equipment to net realizable value for
the six months ended June 30, 1998 and 1997, 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, 1998 is as
follows:
Net minimum lease payments to be received $424,000
Less unearned income 118,000
Add expected future residual -
________
$306,000
========
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 and direct financing leases as of June 30, 1998 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1998 $1,319,000 $111,000
1999 2,704,000 221,000
2000 831,000 92,000
2001
__________ ________
$4,854,000 $424,000
========== ========
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, 1998 and 1997:
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
____ ____ ____ ____
Management fee $49,721 $46,497 $101,364 $92,009
Reimbursable costs 51,259 42,784 94,274 84,329
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.
7
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (Continued)
Amounts due from related parties at June 30, 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 June 30, 1998 and December 31, 1997
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.
3. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $125,000 in
August 1998 for the three months ended June 30, 1998, to all admitted
partners as of June 30, 1998.
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 $965,571 and
$811,505 for the three months ended June 30, 1998 and 1997, respectively
and $1,957,485 and $1,609,476 for the six months ended June 30, 1998 and 1997,
respectively. Rental income from the leasing of equipment accounted for 95%
and 94% of total revenues for the second quarter of 1998 and 1997, respectively
and 93% and 94% of total revenues for the six months ended June 30, 1998 and
1997, respectively. The increase in revenues is primarily attributable to an
increase in rental income. In 1998, rental income increased by approximately
$490,000 because of rents recognized on equipment purchased since the second
quarter of 1997 as well as rents generated from 1997 equipment purchases for
which a full six months of rent was earned in 1998 and only a portion of the
six months was earned in 1997. This increase in rent was reduced by approxi-
mately $189,000 resulting from 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 $64,024 for the six months ended June 30, 1998. There was
no gain on sale of equipment for the six months ended June 30, 1997. The
increase in this account also contributed to the overall increase in revenues
in 1998.
Expenses were $969,418 and $684,161 during the three months ended June
30, 1998 and 1997, respectively and $1,791,611 and $1,412,716 during the six
months ended June 30, 1998 and 1997, respectively. Depreciation expense
comprised 76% and 81% of total expenses during the second quarter of 1998 and
1997, respectively and 80% and 79% of total expenses during the first six
months 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 June 1997. Additionally, the increase in
write-down of equipment to net realizable value contributed to the overall
increase in expenses in 1998. Based upon the review of the recoverability of
the undepreciated cost of rental equipment, $105,000 was charged to operations
to write down equipment to its estimated net realizable value for the six
months ended June 30, 1998 compared to $60,868 for the six months ended June
30, 1997. Any future losses are dependent upon unanticipated technological
developments affecting the computer equipment industry in subsequent years.
The decrease in net loss on sale of equipment in 1998 reduced the overall
increase in expenses for this year. There was no loss incurred for the six
months ended June 30, 1998 compared to a net loss on sale of equipment of
$21,700 for the six months ended June 30, 1997.
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)
For the three months ended June 30, 1998 and 1997, the Fund had net income
(loss) of ($3,847) and $127,344, respectively. For the six months ended
June 30, 1998 and 1997, the Fund had net income of $165,874 and $196,760,
respectively. The earnings (loss) per equivalent limited partnership unit,
after earnings (loss) allocated to the General Partner were ($0.20) and $5.05
based on a weighted average number of equivalent limited partnership units
outstanding of 25,267 and 24,929 for the quarter ended June 30, 1998 and 1997,
respectively. The earnings per equivalent limited partnership unit, after
earnings allocated to the General Partner, were $6.46 and $7.75 based on a
weighted average number of equivalent limited partnership units outstanding of
25,267 and 24,989 for the six months ended June 30, 1998 and 1997, respec-
tively.
The Fund generated cash from operations of $832,534 and $697,878, for the
purpose of determining cash available for distribution for the quarter ended
June 30, 1998 and 1997, respectively and distributed $125,000 and $150,000 to
partners in August 1998 and 1997, respectively. For the six months ended June
30, 1998 and 1997, the Fund generated cash from operations of $1,642,706 and
$1,388,451 and distributed $150,000 to partners during the six months ended
June 30, 1998 and 1997, respectively and $125,000 and $150,000 in August 1998
and 1997, 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 equipment with cash
available from operations which was not distributed to partners for terms
consistent with the plan of dissolution. The Fund purchased $4,007,513 and
$1,023,941 of equipment during the six months ended June 30, 1998 and 1997,
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, 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: 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.
8-13-98 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
8-13-98 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:
8- -98 ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
By:
8- -98 ___________________________
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-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 835,184
<SECURITIES> 0
<RECEIVABLES> 527,070
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,362,254
<PP&E> 11,939,760
<DEPRECIATION> 6,375,750
<TOTAL-ASSETS> 7,231,963
<CURRENT-LIABILITIES> 302,021
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,929,942
<TOTAL-LIABILITY-AND-EQUITY> 7,231,963
<SALES> 1,811,497
<TOTAL-REVENUES> 1,957,485
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,791,611
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 165,874
<INCOME-TAX> 0
<INCOME-CONTINUING> 165,874
<DISCONTINUED> 8
<EXTRAORDINARY> 8
<CHANGES> 8
<NET-INCOME> 165,874
<EPS-PRIMARY> 6.46
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