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, 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 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
registrant was required to file such reports), and (2) has been subject to
such filing 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,
1999 1998
_____________ ____________
Cash and cash equivalents $2,707,185 $1,822,926
Accounts receivable 298,532 232,606
Due from related parties 129,078 147,930
Equipment under operating leases
(net of accumulated depreciation
of $4,166,598 and $4,559,234,
respectively) 1,588,366 2,294,009
Net investment in direct financing leases 2,151,793 2,489,583
Equipment held for sale or lease 36,738 60,701
__________ __________
Total assets $6,911,692 $7,047,755
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 157,845 $ 155,878
Accounts payable and
accrued expenses 87,654 84,219
Due to related parties 10,794 61,485
__________ __________
Total liabilities 256,293 301,582
Partners' capital 6,655,399 6,746,173
__________ __________
Total liabilities and
partners' capital $6,911,692 $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 Six Months Ended
June 30 June 30
1999 1998 1999 1998
____ ____ ____ ____
Income:
Rentals $427,019 $920,251 $ 843,181 $1,811,497
Earned income on direct
financing leases 61,445 9,139 141,816 9,139
Interest 22,292 23,918 43,909 68,703
Gain on sale of equipment,
net 59,003 9,524 61,853 64,024
Other 9,761 2,739 18,801 4,122
________ ________ __________ __________
579,520 965,571 1,109,560 1,957,485
________ ________ __________ __________
Expenses:
Depreciation 315,965 740,905 639,489 1,435,856
Write-down of equipment to
net realizable value 52,895 105,000 76,605 105,000
General and administrative 31,812 22,533 60,278 55,117
General and administrative
to related party 45,394 51,259 83,824 94,274
Management fee to
related party 36,304 49,721 83,151 101,364
________ ________ __________ __________
482,370 969,418 943,347 1,791,611
________ ________ __________ __________
Net income (loss) $ 97,150 $ (3,847) $ 166,213 $ 165,874
======== ======== ========== ==========
Net income (loss) per equivalent
limited partnership unit $ 3.93 $ (.20) $ 6.68 $ 6.46
======== ======== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 24,405 25,267 24,498 25,267
======== ======== ========== ==========
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, 1999
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1999 $ 2,516 76,137 $6,743,657 $6,746,173
Redemption - (90) (6,987) (6,987)
Cash distributions (2,500) - (247,500) (250,000)
Net income 2,500 - 163,713 166,213
_______ ______ __________ __________
Balance, June 30, 1999 $ 2,516 76,047 $6,652,883 $6,655,399
======= ====== ========== ==========
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, 1999 and 1998
(Unaudited)
1999 1998
__________ ___________
Cash flows from operating activities:
Net income $ 166,213 $ 165,874
__________ ___________
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 639,489 1,435,856
Write-down of equipment to net realizable value 76,605 105,000
Gain on sale of equipment, net (61,853) (64,024)
(Increase) decrease in accounts receivable (65,926) (328,210)
(Increase) decrease in due from related parties 18,852 153,365
Increase (decrease) in lease rents paid
in advance 1,967 (42,100)
Increase (decrease) in accounts payable and
accrued expenses 3,435 (19,312)
Increase (decrease) in due to related parties (50,691) (27,864)
__________ ___________
561,878 1,212,711
__________ ___________
Net cash provided by operating activities 728,091 1,378,585
__________ ___________
Cash flows from investing activities:
Acquisition of equipment - (4,007,513)
Proceeds from sale of equipment 75,365 75,201
Proceeds from direct financing leases,
net of earned income 337,790 9,281
__________ ___________
Net cash provided by (used in)
investing activities 413,155 (3,923,031)
__________ ___________
Cash flows from financing activities:
Distributions (250,000) (300,000)
Redemptions (6,987) -
__________ ___________
Net cash used in financing activities (256,987) (300,000)
__________ ___________
Increase (decrease) in cash and cash
equivalents 884,259 (2,844,446)
Cash and cash equivalents, beginning
of period 1,822,926 3,679,630
__________ ___________
Cash and cash equivalents, end of period $2,707,185 $ 835,184
========== ===========
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, 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 reclas-
sified 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 equip-
ment 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, $76,605 and $105,000 was charged to write-
down of equipment to net realizable value for the six months ended June
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 unguaranteed residuals 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 exten-
sions or disposition of the equipment. The Fund reviews these resid-
ual values quarterly. If the equipment's fair market value is below
the estimated residual value, an adjustment is made.
6
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
1. EQUIPMENT LEASED (Continued)
The net investment in direct financing leases as of June 30, 1999 is as
follows:
Minimum lease payments to be received $2,332,000
Unguaranteed residuals 172,000
Unearned rental income (312,000)
Unearned residual income (40,000)
__________
$2,152,000
==========
The future approximate minimum rentals to be received on noncancellable
operating and direct financing leases as of June 30, 1999 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
1999 $ 709,000 $ 480,000
2000 476,000 627,000
2001 - 494,000
2002 - 488,000
2003 - 243,000
__________ __________
$1,185,000 $2,332,000
========== ==========
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
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
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.
7
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (Continued)
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, 1999 and 1998:
Three Months Ended Six Months Ended
June 30 June 30
1999 1998 1999 1998
____ ____ ____ ____
Management fee $36,304 $49,721 $83,151 $101,364
Reimbursable costs 45,394 51,259 83,824 94,274
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 June 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 June 30, 1999 and December 31, 1998
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. 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
August 1999 for the three months ended June 30, 1999, to all admitted
partners as of June 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 $579,520 and
$965,571 for the three months ended June 30, 1999 and 1998, respectively
and $1,109,560 and $1,957,485 for the six months ended June 30, 1999 and
1998, respectively. Rental income from the leasing of equipment accounted
for 74% and 95% of total revenues for the second quarter of 1999 and 1998,
respectively and 76% and 93% of total revenues for the six months ended
June 30, 1999 and 1998, respectively. The decrease in revenues was prima-
rily attributable to a decrease in rental income. In 1999, rental income
decreased by approximately $1,085,000 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 gener-
ated from 1998 equipment purchases for which a full six months of rent was
earned in 1999 and only a portion of the six months was earned in 1998.
Additionally, the interest income earned by the Fund on invested cash de-
creased in 1999 because of the decrease in cash available for investment by
the Fund. This decrease also contributed to the decrease in total revenues
during the six months ended June 30, 1999. However, the Fund invested in
direct financing leases during 1998. As a result, $141,816 of earned income
on direct financing leases was recorded during the first six months of 1999
compared to $9,139 for the same period in 1998. The increase in this account
mitigated a portion of the overall decrease in revenues in 1999.
Expenses were $482,370 and $969,418 during the three months ended June
30, 1999 and 1998, respectively and $943,347 and $1,791,611 during the six
months ended June 30, 1999 and 1998, respectively. Depreciation expense
comprised 66% and 76% of total expenses during the second quarter of 1999 and
1998, respectively and 68% and 80% of total expenses during the first six
months of 1999 and 1998, respectively. The decrease in expenses between 1999
and 1998 was primarily attributable to a decrease in depreciation expense
because of equipment that terminated or sold since June 1998. Additionally,
the decrease in write-down of equipment to net realizable value contributed
to the overall decrease in expenses in 1999. Based upon the review of the
recoverability of the undepreciated cost of rental equipment, $76,605 was
charged to operations to write down equipment to its estimated net realiz-
able value for the six months ended June 30, 1999 compared to $105,000 for
the six months ended June 30, 1998. Any future losses are dependent upon
unanticipated technological developments affecting the types of equipment
in the portfolio in subsequent years. Furthermore, the decrease in manage-
ment fee to related party proportionate to the decrease in rental income
in 1999 also accounted for the decrease in total expenses.
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, 1999 and 1998, the Fund had net
income (loss) of $97,150 and ($3,847), respectively. For the six months
ended June 30, 1999 and 1998, the Fund had net income of $166,213 and
$165,874, respectively. The earnings (loss) per equivalent limited part-
nership unit, after earnings (loss) allocated to the General Partner were
$3.93 and ($.20) based on a weighted average number of equivalent limited
partnership units outstanding of 24,405 and 25,267 for the quarter ended
June 30, 1999 and 1998, respectively. The earnings per equivalent limited
partnership unit, after earnings allocated to the General Partner, were
$6.68 and $6.46 based on a weighted average number of equivalent limited
partnership units outstanding of 24,498 and 25,267 for the six months ended
June 30, 1999 and 1998, respectively.
The Fund generated cash from operations of $407,007 and $832,534, for the
purpose of determining cash available for distribution for the quarter ended
June 30, 1999 and 1998, respectively and distributed $125,000 to partners in
both August 1999 and 1998. For the six months ended June 30, 1999 and 1998,
the Fund generated cash from operations of $820,454 and $1,642,706 and dis-
tributed $125,000 to partners during the first six months of both 1999 and
1998, and $125,000 in both August 1999 and 1998. 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 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 equip-
ment subject to operating leases and no investments in direct financing
leases made during the six months ended June 30, 1999. The Fund purchased
$4,007,513 of equipment under operating leases during the six months ended
June 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.
June 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.
8-13-99 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
8-13-99 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 2,707,185
<SECURITIES> 0
<RECEIVABLES> 427,610
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,134,795
<PP&E> 5,791,702
<DEPRECIATION> 4,166,598
<TOTAL-ASSETS> 6,911,692
<CURRENT-LIABILITIES> 256,293
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,655,399
<TOTAL-LIABILITY-AND-EQUITY> 6,911,692
<SALES> 843,181
<TOTAL-REVENUES> 1,109,560
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 943,347
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 166,213
<INCOME-TAX> 0
<INCOME-CONTINUING> 166,213
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 166,213
<EPS-BASIC> 6.68
<EPS-DILUTED> 6.68
</TABLE>
