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, 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)
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
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Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND V, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
September 30, December 31,
2000 1999
_____________ _____________
Cash and cash equivalents $4,114,989 $2,525,520
Accounts receivable 475,027 136,273
Due from related parties 96 55,877
Equipment under operating leases
(net of accumulated depreciation
of $1,997,344 and $4,251,734,
respectively) 2,221 969,034
Net investment in direct financing leases 2,357,261 3,130,411
Equipment held for sale or lease - 469
__________ __________
Total assets $6,949,594 $6,817,584
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 102,712 $ 146,048
Accounts payable and
accrued expenses 83,510 72,194
Due to related parties 11,852 23,439
__________ __________
Total liabilities 198,074 241,681
Partners' capital 6,751,520 6,575,903
__________ __________
Total liabilities and
partners' capital $6,949,594 $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 Nine Months Ended
September 30 September 30
2000 1999 2000 1999
____ ____ ____ ____
Income:
Rentals $152,523 $355,726 $ 708,812 $1,198,907
Earned income on direct
financing leases 51,532 76,634 176,597 218,450
Interest 31,990 45,976 98,889 89,885
Gain on sale of equipment,
net 255,963 9,193 261,634 71,046
Other 1,376 12,538 3,767 31,339
________ ________ __________ __________
493,384 500,067 1,249,699 1,609,627
________ ________ __________ __________
Expenses:
Depreciation 60,157 293,816 458,952 933,305
Write-down of equipment to
net realizable value - 10,513 - 87,118
General and administrative 17,762 21,209 62,587 81,487
General and administrative to
related party 29,269 32,374 82,276 116,198
Management fee to related
party 24,889 64,384 95,267 147,535
________ ________ __________ __________
132,077 422,296 699,082 1,365,643
________ ________ __________ __________
Net income $361,307 $ 77,771 $ 550,617 $ 243,984
======== ======== ========== ==========
Net income per equivalent
limited partnership unit $ 14.67 $ 3.15 $ 22.47 $ 9.83
======== ======== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 24,420 24,313 24,262 24,436
======== ======== ========== ==========
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 nine months ended September 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 (3,750) - (371,250) (375,000)
Net income 5,506 - 545,111 550,617
______ ______ __________ __________
Balance, September 30, 2000 $4,272 76,047 $6,747,248 $6,751,520
====== ====== ========== ==========
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 nine months ended September 30, 2000 and 1999
(Unaudited)
2000 1999
____ ____
Cash flows from operating activities:
Net income $ 550,617 $ 243,984
__________ __________
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 458,952 933,305
Write-down of equipment to net
realizable value - 87,118
(Gain) loss on sale of equipment, net (261,634) (71,046)
(Increase) decrease in accounts receivable (338,754) 95,771
(Increase) decrease in due from related
parties 55,781 136,960
Increase (decrease) in lease rents paid
in advance (43,336) (2,959)
Increase (decrease) in accounts payable and
accrued expenses 11,316 (18,102)
Increase (decrease) in due to related
parties (11,587) (49,246)
__________ __________
(129,262) 1,111,801
__________ __________
Net cash provided by operating activities 421,355 1,355,785
__________ __________
Cash flows from investing activities:
Proceeds from sale of equipment 769,964 119,419
Proceeds from direct financing leases,
net of earned income 773,150 1,474,074
__________ __________
Net cash provided by investing activities 1,543,114 1,593,493
__________ __________
Cash flows from financing activities:
Distributions (375,000) (375,000)
Redemption - (6,987)
__________ __________
Net cash used in financing activities (375,000) (381,987)
__________ __________
Increase in cash and cash equivalents 1,589,469 2,567,291
Cash and cash equivalents, beginning
of period 2,525,520 1,822,926
__________ __________
Cash and cash equivalents, end of period $4,114,989 $4,390,217
========== ==========
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
September 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.
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 to
net realizable value for the nine months ended September 30, 2000. For
the nine months ended September 30, 1999, $87,118 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 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 Fund's direct financing leases are for
initial lease terms ranging from 33 to 59 months.
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.
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 September 30, 2000 is
as follows:
Minimum lease payments to be received $2,206,000
Unguaranteed residuals 387,000
Unearned rental income (176,000)
Unearned residual income (60,000)
__________
$2,357,000
==========
The future approximate minimum rentals to be received on noncancellable
operating and direct financing leases as of September 30, 2000 are as
follows:
Direct
Years Ending December 31 Operating Financing
________________________ _________ _________
2000 $54,000 $ 286,000
2001 - 1,144,000
2002 - 660,000
2003 - 116,000
_______ __________
$54,000 $2,206,000
======= ==========
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
7
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FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (Continued)
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, 2000 and 1999:
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
____ ____ ____ ____
Management fee $24,889 $64,384 $95,267 $147,535
Reimbursable costs 29,269 32,374 82,276 116,198
Amounts due from related parties at September 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 re-
mitted to the Fund.
Amounts due to related parties at September 30, 2000 and December 31, 1999
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. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $125,000 in
November 2000 for the three months ended September 30, 2000, to all
admitted partners as of September 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 $493,384 and
$500,067 for the three months ended September 30, 2000 and 1999, respec-
tively, and $1,249,699 and $1,609,627 for the nine months ended September 30,
2000 and 1999, respectively. Rental income from the leasing of equipment
accounted for 31% and 71% of total revenues for the third quarter of
2000 and 1999, respectively and 57% and 74% of total revenues for the nine
months ended September 30, 2000 and 1999, respectively. The decrease in
total revenues was primarily attributable to a decrease in rental income.
In 2000, rental income decreased by approximately $490,000 resulting from
equipment that came off lease and was sold. Additionally, earned income on
direct financing leases decreased during the first nine months of 2000
compared to the same period in 1999. The decrease in this account was
caused by the sale of two leases in the third and fourth quarter of 1999
prior to their termination date. Furthermore, other income decreased during
2000 because of the decrease in the amount of late charges collected on
delinquent rents during the nine months ended September 30, 2000 compared
to the same period in 1999. The decrease in this account also accounted for
the overall decrease in revenues in the current year. However, the Fund
recorded $261,634 of net gain on sale of equipment during the nine months
ended September 30, 2000 compared to $71,046 for the same period in 1999.
The increase in this account mitigated a portion of the overall decrease in
revenues in 2000.
Expenses were $132,077 and $422,296 for the three months ended Sep-
tember 30, 2000 and 1999, respectively and $699,082 and $1,365,643 for the
nine months ended September 30, 2000 and 1999, respectively. Depreciation
expense comprised 46% and 70% of total expenses during the third quarter of
2000 and 1999, respectively and 66% and 68% of total expenses during the first
nine months of 2000 and 1999, respectively. The decrease in expenses between
2000 and 1999 was primarily attributable to the decrease in depreciation ex-
pense because of equipment that terminated and was sold since September 1999.
In addition, the decrease in write-down of equipment to net realizable value
also caused the decrease in total expenses in 2000. Based upon the quarterly
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 nine months ended September 30, 2000 compared
to $87,118 for the nine months ended September 30, 1999. Any future losses
are dependent upon unanticipated technological developments affecting the
types of equipment in the portfolio in subsequent years. Furthermore, general
and administrative expenses to related party also decreased during the nine
months ended September 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.
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
RESULTS OF OPERATIONS (Continued)
For the three months ended September 30, 2000 and 1999, the Fund had net
income of $361,307 and $77,771, respectively. For the nine months ended
September 30, 2000 and 1999, the Fund had net income of $550,617 and $243,984,
respectively. The earnings per equivalent limited partnership unit, after
earnings allocated to the General Partner were $14.67 and $3.15 based on a
weighted average number of equivalent limited partnership units outstanding
of 24,420 and 24,313 for the quarter ended September 30, 2000 and 1999, respec-
tively. The earnings per equivalent limited partnership unit, after earnings
allocated to the General Partner, were $22.47 and $9.83 based on a weighted
average number of equivalent limited partnership units outstanding of 24,262
and 24,436 for the nine months ended September 30, 2000 and 1999, respectively.
The Fund generated cash from operations of $165,501 and $372,907, for the
purpose of determining cash available for distribution for the quarter ended
September 30, 2000 and 1999, respectively and distributed $125,000 to partners
in both November 2000 and 1999. For the nine months ended September 30, 2000
and 1999, the Fund generated cash from operations of $747,935 and $1,193,361
and distributed $250,000 of these amounts to partners during both the nine
months ended September 30, 2000 and 1999, and $125,000 of these amounts in
both November 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.
September 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 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.
11-13-00 By: Freddie M. Kotek
________ _____________________________
Date Freddie M. Kotek
President of F.L. Partnership Management, Inc.
(Principal Operating Officer)
11-13-00 By: Marianne T. Schuster
________ _____________________________
Date Marianne T. Schuster
Vice President of F.L. Partnership Management, Inc.
(Principal Financial Officer)
12
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