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 March 31, 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
<PAGE>
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND V, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
March 31, December 31,
2000 1999
_____________ ____________
Cash and cash equivalents $2,993,212 $2,525,520
Accounts receivable 319,142 136,273
Due from related parties 16,985 55,877
Equipment under operating leases (net
of accumulated depreciation of
$3,566,051 and $4,251,734,
respectively) 531,816 969,034
Net investment in direct
financing leases 2,856,398 3,130,411
Equipment held for sale or lease 109,159 469
__________ __________
Total assets $6,826,712 $6,817,584
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 124,273 $ 146,048
Accounts payable and
accrued expenses 87,827 72,194
Due to related parties 18,623 23,439
__________ __________
Total liabilities 230,723 241,681
Partners' capital 6,595,989 6,575,903
__________ __________
Total liabilities and
partners' capital $6,826,712 $6,817,584
========== ==========
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
FIDELITY LEASING INCOME FUND V, L.P.
STATEMENTS OF OPERATIONS
For the three months ended March 31, 2000 and 1999
(Unaudited)
2000 1999
________ ________
Income:
Rentals $342,420 $416,162
Earned income on direct financing leases 67,129 80,371
Interest 38,360 21,617
Gain on sale of equipment, net 27,287 2,850
Other 986 9,040
________ ________
476,182 530,040
________ ________
Expenses:
Depreciation 237,882 323,524
Write-down of equipment to net
realizable value - 23,710
General and administrative 26,568 28,466
General and administrative to related
party 27,048 38,430
Management fee to related party 39,598 46,847
________ ________
331,096 460,977
________ ________
Net income $145,086 $ 69,063
======== ========
Net income per equivalent
limited partnership unit $ 5.93 $ 2.76
======== ========
Weighted average number of
equivalent limited partnership
units outstanding during the period 24,221 24,590
======== ========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
FIDELITY LEASING INCOME FUND V, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the three months ended March 31, 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 (1,250) - (123,750) (125,000)
Net income 1,451 - 143,635 145,086
_______ ______ __________ __________
Balance, March 31, 2000 $ 2,717 76,047 $6,593,272 $6,595,989
======= ====== ========== ==========
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
FIDELITY LEASING INCOME FUND V, L.P.
STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2000 and 1999
(Unaudited)
2000 1999
________ ________
Cash flows from operating activities:
Net income $ 145,086 $ 69,063
__________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 237,882 323,524
Write-down of equipment to net
realizable value - 23,710
(Gain) loss on sale of equipment, net (27,287) (2,850)
(Increase) decrease in accounts
receivable (182,869) (75,389)
(Increase) decrease in due from
related parties 38,892 66,962
Increase (decrease) in lease rents
paid in advance (21,775) (5,486)
Increase (decrease) in accounts
payable and accrued expenses 15,633 28,017
Increase (decrease) in due to
related parties (4,816) (5,593)
__________ __________
55,660 352,895
__________ __________
Net cash provided by operating activities 200,746 421,958
__________ __________
Cash flows from investing activities:
Proceeds from direct financing leases,
net of earned income 274,013 159,431
Proceeds from sale of equipment 117,933 2,850
__________ __________
Net cash provided by investing activities 391,946 162,281
__________ __________
Cash flows from financing activities:
Distributions (125,000) (125,000)
Redemptions of capital - (6,987)
__________ __________
Net cash used in financing activities (125,000) (131,987)
__________ __________
Increase in cash and cash equivalents 467,692 452,252
Cash and cash equivalents, beginning
of period 2,525,520 1,822,926
__________ __________
Cash and cash equivalents, end of period $2,993,212 $2,275,178
========== ==========
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
March 31, 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 of equipment under operating leases. The
lessees have agreements with the manufacturer of the equipment 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 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 the equipment and com-
petitive 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,
there was no charge to write-down of equipment to net realizable value
during the quarter ended March 31, 2000 and $23,710 was charged to
write-down of equipment to net realizable value during the quarter ended
March 31, 1999. Any future losses are dependent upon unanticipated tech-
nological developments affecting the types of equipment in the port-
folio 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. The Fund's direct financing leases are for
initial lease terms ranging from 24 to 59 months.
Unguaranteed residuals for direct financing leases represent the estimated
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 at lease expiration is
below the estimated residual value, an adjustment is made.
6
<PAGE>
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 March 31, 2000 is as
follows:
Minimum lease payments to be received $2,814,000
Unguaranteed residuals 388,000
Unearned rental income (273,000)
Unearned residual income (73,000)
__________
$2,856,000
==========
The future approximate minimum rentals to be received on noncancellable
operating and direct financing leases as of March 31, 2000 are as follows:
Years Ending December 31 Operating Direct Financing
________________________ _________ ________________
2000 $297,000 $ 894,000
2001 - 1,144,000
2002 - 660,000
2003 - 116,000
________ __________
$297,000 $2,814,000
======== ==========
2. RELATED PARTY TRANSACTIONS
The General Partner receives 6% or 3% of gross rental payments from
equipment under operating leases and full pay-out leases, respectively,
for administrative and management services performed on behalf of the
Fund. 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. Follow-
ing is a summary of fees and costs of services and materials charged
7
<PAGE>
FIDELITY LEASING INCOME FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (continued)
by the General Partner or its parent company during the three months
ended March 31:
2000 1999
________ ________
Management fee $39,598 $46,847
Reimbursable costs 27,048 38,430
Amounts due from related parties at March 31, 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 March 31, 2000 and December 31, 1999
represent monies due to the General Partner and/or its parent company
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 May 2000 for the three months ended March 31, 2000, to all admitted
partners as of March 31, 2000.
8
<PAGE>
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 $476,182 and
$530,040 for the three months ended March 31, 2000 and 1999, respectively.
Rental income from the leasing of equipment accounted for 72% and 79% of
total revenues for the first quarter of 2000 and 1999, respectively. The
decrease in revenues was primarily attributable to a decrease in rental in-
come. In 2000, rental income decreased by approximately $74,000 because of
equipment under operating leases that was re-leased at lower rental rates or
was sold. However, the Fund recognized a net gain on sale of equipment of
$27,287 for the quarter ended March 31, 2000 compared to $2,850 for the
quarter ended March 31, 1999, which mitigated the decrease in total revenues
in 2000.
Expenses were $331,096 and $460,977 during the three months ended
March 31, 2000 and 1999, respectively. Depreciation expense comprised 72%
and 70% of total expenses during the first quarter of 2000 and 1999, respec-
tively. 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 March 1999.
Additionally, the decrease in write-down of equipment to net realizable
value also accounted for the overall decrease in expenses in the first
quarter of 2000. Based upon the quarterly review of the recoverability
of the undepreciated cost of rental equipment, there was no write-down
of equipment to net realizable value recorded for the three months ended
March 31, 2000 compared to $23,710 of write-down of equipment to net real-
izable value recorded during the three months ended March 31, 1999. Any
future losses are dependent upon unanticipated technological developments
affecting the types of equipment in the portfolio in subsequent years.
For the three months ended March 31, 2000 and 1999, the Fund's net
income was $145,086 and $69,063, respectively. The net income per equiv-
alent limited partnership unit, after net income allocated to the General
Partner, was $5.93 and $2.76 based on a weighted average number of equivalent
limited partnership units outstanding of 24,221 and 24,590 for the quarter
ended March 31, 2000 and 1999, respectively.
The Fund generated cash from operations of $355,681 and $413,447, for
the purpose of determining cash available for distribution and distributed
$125,000 to partners in both May 2000 and 1999 for the first quarter of 2000
and 1999, respectively. Cash distributions of $125,000 were paid to partners
during the first quarter of both 2000 and 1999 for the three months ended
December 31, 1999 and 1998, respectively. For financial statement purposes,
the Fund records cash distributions to partners on a cash basis in the
period in which they are paid.
9
<PAGE>
FIDELITY LEASING INCOME FUND V, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
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
<PAGE>
Part II: Other Information
FIDELITY LEASING INCOME FUND V, L.P.
March 31, 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
<PAGE>
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.
5-11-00 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
5-11-00 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 2,993,212
<SECURITIES> 0
<RECEIVABLES> 336,127
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,329,339
<PP&E> 4,207,026
<DEPRECIATION> 3,566,051
<TOTAL-ASSETS> 6,826,712
<CURRENT-LIABILITIES> 230,723
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,595,989
<TOTAL-LIABILITY-AND-EQUITY> 6,826,712
<SALES> 342,420
<TOTAL-REVENUES> 476,182
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 331,096
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 145,086
<INCOME-TAX> 0
<INCOME-CONTINUING> 145,086
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 145,086
<EPS-BASIC> 5.93
<EPS-DILUTED> 5.93
</TABLE>
