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, 2000
/ / 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
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Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND V, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
June 30, December 31,
2000 1999
_____________ ____________
Cash and cash equivalents $3,581,687 $2,525,520
Accounts receivable 213,676 136,273
Due from related parties - 55,877
Equipment under operating leases (net
of accumulated depreciation of
$3,294,742 and $4,251,734,
respectively) 325,591 969,034
Net investment in direct
financing leases 2,591,610 3,130,411
Equipment held for sale or lease 12,175 469
__________ __________
Total assets $6,724,739 $6,817,584
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 107,692 $ 146,048
Accounts payable and
accrued expenses 72,327 72,194
Due to related parties 29,507 23,439
__________ __________
Total liabilities 209,526 241,681
Partners' capital 6,515,213 6,575,903
__________ __________
Total liabilities and
partners' capital $6,724,739 $6,817,584
========== ==========
The accompanying notes are an integral part of these financial statements.
2
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FIDELITY LEASING INCOME FUND V, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
____ ____ ____ ____
Income:
Rentals $213,869 $427,019 $556,289 $ 843,181
Earned income on direct
financing leases 57,936 61,445 125,065 141,816
Interest 28,539 22,292 66,899 43,909
Gain on sale of equipment,
net - 59,003 5,671 61,853
Other 1,405 9,761 2,391 18,801
________ ________ ________ __________
301,749 579,520 756,315 1,109,560
________ ________ ________ __________
Expenses:
Depreciation 160,913 315,965 398,795 639,489
Write-down of equipment to
net realizable value - 52,895 - 76,605
General and administrative 18,257 31,812 44,825 60,278
General and administrative
to related party 25,959 45,394 53,007 83,824
Management fee to
related party 30,780 36,304 70,378 83,151
Loss on sale of equipment,
net 21,616 - - -
________ ________ ________ __________
257,525 482,370 567,005 943,347
________ ________ ________ __________
Net income $ 44,224 $ 97,150 $189,310 $ 166,213
======== ======== ======== ==========
Net income per equivalent
limited partnership unit $ 1.78 $ 3.93 $ 7.72 $ 6.68
======== ======== ======== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 24,144 24,405 24,183 24,498
======== ======== ======== ==========
The accompanying notes are an integral part of these financial statements.
3
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FIDELITY LEASING INCOME FUND V, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the six months ended June 30, 2000
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 2000 $ 2,516 76,047 $6,573,387 $6,575,903
Cash distributions (2,500) - (247,500) (250,000)
Net income 2,500 - 186,810 189,310
_______ ______ __________ __________
Balance, June 30, 2000 $ 2,516 76,047 $6,512,697 $6,515,213
======= ====== ========== ==========
The accompanying notes are an integral part of these financial statements.
4
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FIDELITY LEASING INCOME FUND V, L.P.
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2000 and 1999
(Unaudited)
2000 1999
__________ __________
Cash flows from operating activities:
Net income $ 189,310 $ 166,213
__________ __________
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 398,795 639,489
Write-down of equipment to net realizable value - 76,605
Gain on sale of equipment, net (5,671) (61,853)
(Increase) decrease in accounts receivable (77,403) (65,926)
(Increase) decrease in due from related parties 55,877 18,852
Increase (decrease) in lease rents paid
in advance (38,356) 1,967
Increase (decrease) in accounts payable and
accrued expenses 133 3,435
Increase (decrease) in due to related parties 6,068 (50,691)
__________ __________
339,443 561,878
__________ __________
Net cash provided by operating activities 528,753 728,091
__________ __________
Cash flows from investing activities:
Proceeds from sale of equipment 238,613 75,365
Proceeds from direct financing leases,
net of earned income 538,801 337,790
__________ __________
Net cash provided by investing activities 777,414 413,155
__________ __________
Cash flows from financing activities:
Distributions (250,000) (250,000)
Redemptions - (6,987)
__________ __________
Net cash used in financing activities (250,000) (256,987)
__________ __________
Increase in cash and cash equivalents 1,056,167 884,259
Cash and cash equivalents, beginning
of period 2,525,520 1,822,926
__________ __________
Cash and cash equivalents, end of period $3,581,687 $2,707,185
========== ==========
The accompanying notes are an integral part of these financial statements.
5
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FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(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 1999 financial statements have been reclas-
sified to conform to the presentation in 2000.
1. EQUIPMENT LEASED
Equipment on lease consists in part 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 re-
cover all of the undepreciated cost and related expenses of its rental
equipment during the initial lease terms and the Fund is prepared to re-
market the equipment. Fund policy is to review quarterly the expected
economic life of its rental equipment in order to determine the recover-
ability of its undepreciated cost. Recent and anticipated technological
developments affecting the equipment and competitive factors in the market-
place are considered among other things, as part of this review. In accor-
dance 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, there was no write-down of equipment for
the six months ended June 30, 2000. For the six months ended June 30,
1999, $76,605 was charged to write-down of equipment to net realizable
value. Any future losses are dependent upon unanticipated technological
developments affecting the types of equipment in the portfolio in subse-
quent 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. The Fund's direct financing leases are for
initial lease terms ranging from 33 to 59 months.
Unguaranteed residuals for direct financing leases represent the esti-
mated amounts recoverable at lease termination from lease extensions
or disposition 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.
6
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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, 2000 is as
follows:
Minimum lease payments to be received $2,492,000
Unguaranteed residuals 388,000
Unearned rental income (221,000)
Unearned residual income (67,000)
__________
$2,592,000
==========
The future approximate minimum rentals to be received on noncancellable
operating and direct financing leases as of June 30, 2000 are as follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
2000 $123,000 $ 572,000
2001 - 1,144,000
2002 - 660,000
2003 - 116,000
________ __________
$123,000 $2,492,000
======== ==========
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.
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
7
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FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (Continued)
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, 2000 and 1999:
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
____ ____ ____ ____
Management fee $30,780 $36,304 $70,378 $83,151
Reimbursable costs 25,959 45,394 53,007 83,824
Amounts due from related parties at June 30, 2000 and December 31, 1999
represent monies due the Fund from the General Partner and/or other
affiliated funds for rentals and sales proceeds collected and not yet
remitted to the Fund.
Amounts due to related parties at June 30, 2000 and December 31, 1999
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 2000 for the three months ended June 30, 2000, to all admitted
partners as of June 30, 2000.
8
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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 $301,749 and
$579,520 for the three months ended June 30, 2000 and 1999, respectively
and $756,315 and $1,109,560 for the six months ended June 30, 2000 and
1999, respectively. Rental income from the leasing of equipment accounted
for 71% and 74% of total revenues for the second quarter of 2000 and 1999,
respectively and 74% and 76% of total revenues for the six months ended
June 30, 2000 and 1999, respectively. The decrease in revenues was primar-
ily attributable to a decrease in rental income. In 2000, rental income
decreased by approximately $287,000 resulting from equipment that came off
lease and was re-leased at lower rental rates or was sold since the second
quarter of 1999. A decrease in net gain on sale of equipment of $56,000
also contributed to the decrease in total revenues during the six months
ended June 30, 2000. The Fund recognized $5,671 in net gain on sale of equip-
ment for the six months ended June 30, 2000 compared to $61,853 for the same
period in 1999. However, an increase in interest income of approximately
$23,000 during the six months ended June 30, 2000 compared to the six months
ended June 30, 1999 served to lower the overall decrease in revenues during
this period. Interest income increased because of larger cash balances
available for short-term investment.
Expenses were $257,525 and $482,370 during the three months ended
June 30, 2000 and 1999, respectively and $567,005 and $943,347 during the
six months ended June 30, 2000 and 1999, respectively. Depreciation expense
comprised 62% and 66% of total expenses during the second quarter of 2000 and
1999, respectively and 70% and 68% of total expenses during the first six
months of 2000 and 1999, respectively. The decrease in expenses between 2000
and 1999 was primarily attributable to a decrease in depreciation expense
because of equipment under operating leases that came off-lease or was sold
since June 1999. Additionally, the decrease in write-down of equipment to
net realizable value contributed to the overall decrease in expenses in 2000.
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 six months ended June 30, 2000 compared
to $76,605 for the six months ended June 30, 1999. Any future losses are
dependent upon unanticipated technological developments affecting the types
of equipment in the portfolio in subsequent years. Furthermore, the decrease
in general and administrative expenses to related party also decreased during
the six months ended June 30, 2000 compared to the same period in 1999 because
of a decrease in expenses charged by the General Partner or its parent company
for services and materials provided to the Fund.
For the three months ended June 30, 2000 and 1999, the Fund had net
income of $44,224 and $97,150, respectively. For the six months ended
June 30, 2000 and 1999, the Fund had net income of $189,310 and $166,213,
9
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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)
respectively. The earnings per equivalent limited partnership unit, after
earnings allocated to the General Partner, were $1.78 and $3.93 based on a
weighted average number of equivalent limited partnership units outstanding
of 24,144 and 24,405 for the quarter ended June 30, 2000 and 1999, respec-
tively. The earnings per equivalent limited partnership unit, after earnings
allocated to the General Partner, were $7.72 and $6.68 based on a weighted
average number of equivalent limited partnership units outstanding of 24,183
and 24,498 for the six months ended June 30, 2000 and 1999, respectively.
The Fund generated cash from operations of $226,753 and $407,007, for the
purpose of determining cash available for distribution for the quarter ended
June 30, 2000 and 1999, respectively and distributed $125,000 to partners
in both August 2000 and 1999. For the six months ended June 30, 2000 and
1999, the Fund generated cash from operations of $582,434 and $820,454 and
distributed $125,000 to partners during the first six months of both 2000
and 1999 and $125,000 in both August 2000 and 1999. 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 2000. 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.
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
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Part II: Other Information
FIDELITY LEASING INCOME FUND V, L.P.
June 30, 2000
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
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
FIDELITY LEASING INCOME FUND V, L.P.
8-10-00 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
8-10-00 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
12
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