<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
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QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 1997
Commission File Number 33-24159
Medical Equipment Income Fund, Limited Partnership
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(Name of small business issuer as specified in its charter)
Connecticut 13-3471888
- ------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Whitehall Street, Suite 1500, New York, New York 10004
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(Address of principal executive office)
(212) 859-0200
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(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past twelve 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:
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PART I
Item 1. Financial Statements
Statement of Financial Condition as of March 31, 1997 3
Statements of Operations for the quarters ended March 31,
1997, and March 31, 1996 4
Statement of Changes in Partnership Capital for the three months
ended March 31, 1997, and March 31, 1996 5
Statements of Cash Flows for the three months ended
March 31, 1997 and March 31, 1996 6
Notes to Financial Statements 7
2
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
STATEMENT OF FINANCIAL CONDITION
AS OF March 31, 1997
Assets
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Cash and Cash Equivalents (Note A) $ 868,468
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Total Assets $ 868,468
==========
Liabilities and Partners' Capital
---------------------------------
LIABILITIES:
Accrued expenses and other liabilities 46,518
-----------
Total Liabilities 46,518
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PARTNERS' CAPITAL: (Note G)
General Partner (30 Units) (145,473)
Limited Partners (7,106.916 Units) 967,423
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Total Partners' Capital 821,950
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Total Liabilities and Partners' Capital $ 868,468
===========
The accompanying notes are an integral part of these statements
3
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED
March 31, 1997, AND March 31, 1996
1997 1996
---- ----
REVENUES:
Leasing $ 2,571 $ 7,773
Interest Income 10,235 9,342
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Total Revenues 12,806 17,115
EXPENSES:
Professional Fees 39,500 8,750
Equipment Management Fees (Note B) 0 570
Other Expenses 11,908 3,224
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Total Expenses 51,408 12,544
--------- --------
Net Income (Loss) $ (38,602) $ 4,571
========= ========
Net Income per unit, based on the daily weighted
average number of units outstanding:
Limited Partner: (7106.92, 7,151.000 Units) $ (5.16) $ .61
General Partner: (30 Units) $(64.34) $ 7.62
======= =======
The accompanying notes are an integral part of these statements.
4
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL
FOR THE THREE MONTHS ENDED
March 31, 1997, AND March 31, 1996
General Limited
Partner Partners Total
------- -------- -----
Balance, December 31, 1995 $(145,016) $1,252,360 $1,107,344
Distribution to Partners 0 (58,591) (58,591)
Net Income for the Period 229 4,342 4,571
--------- ---------- ----------
Balance, March 31, 1996 $(144,787) $1,198,111 $1,053,324
========= ========== ==========
Balance, December 31, 1996 $(143,543) $1,042,702 $ 899,159
Distribution to Partners -- (38,607) (38,607)
Net Loss for the Period (1,930) (36,672) (38,602)
--------- ---------- ----------
Balance, March 31, 1997 $(145,473) $ 967,423 $ 821,950
========= ========== ==========
The accompanying notes are an integral part of these statements.
6
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
March 31, 1997, AND March 31, 1996
1997 1996
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ (38,602) $ 4,571
Adjustments to reconcile net income to net cash
provided by (used in) operating expenses:
Decrease in other assets 108,331 291,702
(Decrease)in accrued expenses 34,267 (33,250)
Amortization of unearned interest (2,571) (7,773)
---------- ----------
Total adjustments 140,027 250,679
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NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES 101,425 255,250
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CASH FLOWS FROM INVESTING ACTIVITIES:
Collection of net investment in direct
financing leases 0 58,361
(Decrease in net sales tax payable (9,058) (1,158)
NET CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES (9,058) 57,203
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash paid on notes payable 0 0
Distributions paid to partners (38,608) (58,591)
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NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES (38,608) (58,591)
---------- ----------
NET INCREASE/(DECREASE) IN
CASH EQUIVALENTS 53,759 617,060
CASH EQUIVALENTS, Beginning of Period 814,709 253,862
CASH EQUIVALENTS, End of Period $ 868,468 $ 870,922
========== ==========
The accompanying notes are an integral part of these statements
7
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Business
MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP (the "Partnership"), is a
Connecticut limited partnership organized in September 1988. The Partnership
was formed to acquire and lease equipment under operating or direct financing
leases with terms of two to eight years, concentrating in medical and
telecommunications equipment. Vision Limited Partnership is the General
Partner. Leases are with medical groups principally located in the Northeast
region of the United States. The Partnership commenced its operations in
September 1989.
2. Income Taxes
The Partnership is not subject to income taxes. The net income or loss of the
Partnership is reportable by each of the partners, as to their distributive
share.
NOTE B - RELATED PARTY TRANSACTIONS
The General Partner acts in the capacity of equipment manager of the Partnership
During the three months ended March 31, 1997 and 1996, the General Partner
earned fees, which are included in "equipment management fees" in the financial
statements, as follows:
1997 1996
---- ----
Equipment management fee, net 0 285
9
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NOTE C - PARTNERSHIP AGREEMENT
The Partnership's profits and losses are generally allocated five percent to the
general partner and ninety-five percent to the limited partners and can change
upon certain returns on the Partnership capital balance.
The Partnership may make certain qualified redemptions, including redemptions of
units upon the death of a limited partner. No more than 10% of the outstanding
units may be redeemed in any one year and no more than 25% of the outstanding
units may be redeemed over the life of the Partnership.
The Partnership Agreement requires that the Partnership be terminated no later
than December 31, 2010, or earlier, at the occurrence of certain events as
defined in the Agreement. On February 13, 1997 the General Partner authorized
the dissolution of the Partnership and the distribution of all remaining assets
to the partners of record.
NOTE F - MAJOR CUSTOMERS
The Partnership's only customers is located in the northeastern United States,
providing at least 10% of the lease revenue of the Partnership for the three
months ended March 31, 1997, and March 31, 1996. The percentage of contribution
is as follows:
1997 1996
---- ----
East Bergen Services Group 100.00% 100.00%
10
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
For the three months ended March 31, 1997 and 1996, leasing revenues totalled
$2,571 and $7,773, respectively, and interest income totalled $10,235 and
$9,342, respectively. The increase in interest income for the three month
period ended March 31, 1997, as compared with the same period in 1996, is due
primarily to the increased amount of cash and cash equivalents held by the
Partnership in the first quarter of 1997.
Net Loss for the three months ended March 31, 1997, was $(38,602) or $(5.16) per
Limited Partner unit as compared with $4,571 or $.61 per Limited Partner unit
for the three months ended March 31, 1996.
The Partnership's primary source of funds for the three months ended March 31,
1997 and 1996, as the Partnership's leasing operations, including the disposal
of leased equipment
The General Partner anticipates that funds allocated from the proceeds of
equipment sold should be adequate to cover the liquidation expenses of the
Partnership.
11
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Partnership is not aware of any pending legal proceedings or contemplated
governmental proceedings to which it is a party or to which any of its assets
are subject.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
None
Item 4. Submissions of Matters to a Vote of Security Holders
There were no matters submitted to a vote of security holders during the quarter
ended March 31, 1997.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
No exhibits are required to be filed with this report.
b. Reports on Form 8-K
There were no reports on Form 8-K filed by the Partnership during the
quarter ended March 31, 1997.
12
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SIGNATURE
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Date: May 13, 1997
MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
By: Vision Limited Partnership, General Partner
By: Vision Capital Management, Inc., General Partner
By: /s/ Howard Rothman
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Howard M. Rothman, Executive Vice President,
Chief Operating Officer, Secretary, and
Director
/s/ Eric Gaffin
-----------------------------------
Eric Gaffin, Acting Controller
13
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<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
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0
0
<COMMON> 821950
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