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, 1999
/ / 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)
3 North Columbus Boulevard, Philadelphia, PA 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)
September 30, December 31,
1999 1998
_____________ _____________
Cash and cash equivalents $4,390,217 $1,822,926
Accounts receivable 136,835 232,606
Due from related parties 10,970 147,930
Equipment under operating leases
(net of accumulated depreciation
of $4,274,004 and $4,559,234,
respectively) 1,284,037 2,294,009
Net investment in direct financing leases 1,015,509 2,489,583
Equipment held for sale or lease 1,877 60,701
__________ __________
Total assets $6,839,445 $7,047,755
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 152,919 $ 155,878
Accounts payable and
accrued expenses 66,117 84,219
Due to related parties 12,239 61,485
__________ __________
Total liabilities 231,275 301,582
Partners' capital 6,608,170 6,746,173
__________ __________
Total liabilities and
partners' capital $6,839,445 $7,047,755
========== ==========
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
1999 1998 1999 1998
____ ____ ____ ____
Income:
Rentals $355,726 $694,094 $1,198,907 $2,505,591
Earned income on direct
financing leases 76,634 52,583 218,450 61,722
Interest 45,976 12,611 89,885 81,314
Gain on sale of equipment,
net 9,193 39,686 71,046 103,710
Other 12,538 4,081 31,339 8,203
________ ________ __________ __________
500,067 803,055 1,609,627 2,760,540
________ ________ __________ __________
Expenses:
Depreciation 293,816 601,432 933,305 2,037,288
Write-down of equipment to
net realizable value 10,513 109,926 87,118 214,926
General and administrative 21,209 55,504 81,487 110,621
General and administrative to
related party 32,374 43,791 116,198 138,065
Management fee to related
party 64,384 40,565 147,535 141,929
________ ________ __________ __________
422,296 851,218 1,365,643 2,642,829
________ ________ __________ __________
Net income (loss) $ 77,771 $(48,163) $ 243,984 $ 117,711
======== ======== ========== ==========
Net income (loss) per equivalent
limited partnership unit $ 3.15 $ (2.00) $ 9.83 $ 4.53
======== ======== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 24,313 24,696 24,436 25,077
======== ======== ========== ==========
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, 1999
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1999 $ 2,516 76,137 $6,743,657 $6,746,173
Cash distributions (3,750) - (371,250) (375,000)
Redemption - (40) (6,987) (6,987)
Net income 3,750 - 240,234 243,984
_______ ______ __________ __________
Balance, September 30, 1999 $ 2,516 76,097 $6,605,654 $6,608,170
======= ====== ========== ==========
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, 1999 and 1998
(Unaudited)
1999 1998
____ ____
Cash flows from operating activities:
Net income $ 243,984 $ 117,711
__________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 933,305 2,037,288
Write-down of equipment to net
realizable value 87,118 214,926
(Gain) loss on sale of equipment, net (71,046) (103,710)
(Increase) decrease in accounts receivable 95,771 (25,572)
(Increase) decrease in due from related
parties 136,960 136,812
Increase (decrease) in lease rents paid
in advance (2,959) 5,331
Increase (decrease) in accounts payable and
accrued expenses (18,102) (28,489)
Increase (decrease) in due to related
parties (49,246) 31,381
__________ __________
1,111,801 2,267,967
__________ __________
Net cash provided by operating activities 1,355,785 2,385,678
__________ __________
Cash flows from investing activities:
Acquisition of equipment - (2,781,652)
Investment in direct financing leases - (2,240,596)
Proceeds from sale of equipment 119,419 137,377
Proceeds from direct financing leases,
net of earned income 1,474,074 95,032
__________ __________
Net cash provided by (used in)
investing activities 1,593,493 (4,789,839)
__________ __________
Cash flows from financing activities:
Distributions (375,000) (425,000)
Redemption (6,987) -
__________ __________
Net cash used in financing activities (381,987) (425,000)
__________ __________
Increase (decrease) in cash and
cash equivalents 2,567,291 (2,829,161)
Cash and cash equivalents, beginning
of period 1,822,926 3,679,630
__________ __________
Cash and cash equivalents, end of period $4,390,217 $ 850,469
========== ==========
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, 1999
(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 1998 financial statements have been
reclassified to conform to the presentation in 1999.
1. EQUIPMENT LEASED
Equipment on lease consists of equipment under operating leases. 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 10 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. 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 the 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, $87,118 and $109,126 was charged to write-
down of equipment to net realizable value for the nine months ended
September 30, 1999 and 1998, respectively. Any future losses are dependent
upon unanticipated technological developments affecting the types of
equipment in the portfolio 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.
Unguaranteed residuals for direct financing leases represent the estimated
amounts recoverable at lease termination from lease extensions or disposi-
tion of the equipment. The Fund reviews these residual values quarterly.
If the equipment's fair market value is below the estimated residual value,
an adjustment is made.
The net investment in direct financing leases as of September 30, 1999 is
as follows:
Minimum lease payments to be received $ 993,000
Unguaranteed residuals 171,000
Unearned rental income (112,000)
Unearned residual income (37,000)
__________
$1,015,000
==========
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 September 30, 1999 are as
follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1999 $367,000 $225,000
2000 550,000 281,000
2001 - 189,000
2002 - 182,000
2003 - 116,000
________ ________
$917,000 $993,000
======== ========
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 adminis-
trative 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 acquisition 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, 1999 and 1998:
Three Months Ended Nine Months Ended
September 30 September 30
1999 1998 1999 1998
____ ____ ____ ____
Management fee $64,384 $40,565 $147,535 $141,929
Reimbursable costs 32,374 43,791 116,198 138,065
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 September 30, 1999 and December 31,
1998 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 September 30, 1999 and December 31, 1998
represent 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. YEAR 2000 COMPLIANCE
All of the main software systems utilized to generate information for the
Fund are now Year 2000 compliant and in the testing phase. The costs
incurred to complete the Year 2000 Compliance project are not expected to
be material to the net income of the Fund.
All suppliers for the Fund continue to complete their Year 2000 Compliance
programs. It is not anticipated that the Fund will incur any significant
losses should any of its outside suppliers fail to meet their Year 2000
Compliance deadlines.
4. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $125,000 in
November 1999 for the three months ended September 30, 1999, to all
admitted partners as of September 30, 1999.
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 $500,067 and
$803,055 for the three months ended September 30, 1999 and 1998, respec-
tively, and $1,609,627 and $2,760,540 for the nine months ended September 30,
1999 and 1998, respectively. Rental income from the leasing of equipment
accounted for 71% and 86% of total revenues for the third quarter of
1999 and 1998, respectively and 74% and 91% of total revenues for the nine
months ended September 30, 1999 and 1998, respectively. The decrease in
total revenues was primarily attributable to a decrease in rental income.
In 1999, rental income decreased by approximately $1,424,000 resulting from
equipment that came off lease and was re-leased at lower rental rates or sold.
This decrease in rent was reduced by an increase of approximately $117,000
because of rents generated from 1998 equipment purchases for which a full nine
months of rent was earned in 1999 and only a portion of the nine months was
earned in 1998. Additionally, the Fund had a decrease in net gain on sale of
equipment in 1999 which also contributed to the decrease in total revenues.
The Fund recorded $71,046 of net gain on sale of equipment during the nine
months ended September 30, 1999 compared to $103,710 for the same period in
1998. However, the Fund invested in direct financing leases during 1998. As
a result, $218,450 of earned income on direct financing leases was recognized
during the first nine months of 1999 compared to $61,722 for the first nine
months of 1998. The increase in this account mitigated a portion of the
overall decrease in revenues in 1999.
Expenses were $422,296 and $851,218 for the three months ended September
30, 1999 and 1998, respectively and $1,365,643 and $2,642,829 for the nine
months ended September 30, 1999 and 1998, respectively. Depreciation expense
comprised 70% and 71% of total expenses during the third quarter of 1999 and
1998, respectively and 68% and 77% of total expenses during the first nine
months of 1999 and 1998, respectively. The decrease in expenses between 1999
and 1998 was primarily attributable to the decrease in depreciation expense
because of equipment that terminated or sold since September 1998. In addi-
tion, the decrease in write-down of equipment to net realizable value also
caused the decrease in total expenses in 1999. Based upon the quarterly review
of the recoverability of the undepreciated cost of rental equipment, $87,118
was charged to operations to write down equipment to its estimated net realiz-
able value for the nine months ended September 30, 1999 compared to $214,926
for the nine months ended September 30, 1998. Any future losses are dependent
upon unanticipated technological developments affecting the types of equipment
in the portfolio in subsequent years. Furthermore, the equipment remarketing
fees that are included in general and administrative expenses decreased in 1999
compared to 1998 which also caused the decrease in total expenses during the
nine months ended September 30, 1999.
For the three months ended September 30, 1999 and 1998, the Fund had net
income (loss) of $77,771 and ($48,163), respectively. For the nine months
ended September 30, 1999 and 1998, the Fund had net income of $243,984 and
$117,711, respectively. The earnings (loss) per equivalent limited partnership
unit, after earnings (loss) allocated to the General Partner were $3.15 and
($2.00) based on a weighted average number of equivalent limited partnership
units outstanding of 24,313 and 24,696 for the quarter ended September 30, 1999
and 1998, respectively. The earnings per equivalent limited partnership unit,
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)
after earnings allocated to the General Partner, were $9.83 and $4.53 based on
a weighted average number of equivalent limited partnership units outstanding
of 24,436 and 25,077 for the nine months ended September 30, 1999 and 1998,
respectively.
The Fund generated cash from operations of $372,907 and $623,509, for the
purpose of determining cash available for distribution for the quarter ended
September 30, 1999 and 1998, respectively and distributed $125,000 to partners
in both November 1999 and 1998. For the nine months ended September 30, 1999
and 1998, the Fund generated cash from operations of $1,193,361 and $2,266,215
and distributed $250,000 and $275,000 to partners during the nine months ended
September 30, 1999 and 1998, respectively and $125,000 in both November 1999
and 1998. For financial statement purposes, the Fund records cash distribu-
tions 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 1999. 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. There were no purchases of equipment
subject to operating leases and no investments in direct financing leases made
during the nine months ended September 30, 1999. The Fund purchased $2,781,652
of equipment under operating leases and invested in $2,240,596 of direct
financing leases during the nine months ended September 30, 1998.
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, 1999
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.
11-9-99 By: Freddie M. Kotek
_______ _____________________________
Date Freddie M. Kotek
President of F.L. Partnership Management, Inc.
(Principal Operating Officer)
11-9-99 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 4,390,217
<SECURITIES> 0
<RECEIVABLES> 147,805
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,538,022
<PP&E> 5,559,918
<DEPRECIATION> 4,274,004
<TOTAL-ASSETS> 6,839,445
<CURRENT-LIABILITIES> 231,275
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,608,170
<TOTAL-LIABILITY-AND-EQUITY> 6,839,445
<SALES> 1,198,907
<TOTAL-REVENUES> 1,609,627
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,365,643
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 243,984
<INCOME-TAX> 0
<INCOME-CONTINUING> 243,984
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 243,984
<EPS-BASIC> 9.83
<EPS-DILUTED> 9.83
</TABLE>
