<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 JUNE 30, 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 JUNE 30, 1997 3
Statements of Operations for the quarters ended JUNE 30,
1997, and JUNE 30, 1996 4
Statements of Operations for the six months ended JUNE 30,
1997, and JUNE 30, 1996 5
Statement of Changes in Partnership Capital for the six months
ended JUNE 30, 1997, and JUNE 30, 1996 6
Statements of Cash Flows for the six months ended
JUNE 30, 1997 and JUNE 30, 1996 7
Notes to Financial Statements 8
2
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
STATEMENT OF FINANCIAL CONDITION
AS OF JUNE 30, 1997
Assets
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Cash and Cash Equivalents (Note A) $ 50,268
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Total Assets $ 50,268
==========
Liabilities and Partners' Capital
---------------------------------
LIABILITIES:
Accrued expenses and other liabilities 50,268
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Total Liabilities 50,268
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PARTNERS' CAPITAL: (Note G)
General Partner (30 Units) 0
Limited Partners (Liquidated - 0 Units) 0
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Total Partners' Capital 0
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Total Liabilities and Partners' Capital $ 50,268
===========
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
JUNE 30, 1997, AND JUNE 30, 1996
1997 1996
---- ----
REVENUES:
Leasing $ 0 $ 6,894
Interest Income 10,099 10,281
--------- ---------
Total Revenues 10,099 17,175
EXPENSES:
Professional Fees 0 8,750
Equipment Management Fees (Note B) 0 570
Other Expenses 6,829 3,596
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Total Expenses 6,829 12,916
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Net Income (Loss) $ 3,270 $ 4,259
========= =========
Net Income per unit, based on the daily weighted
average number of units outstanding:
Limited Partner: (7106.92, 7,151.000 Units) $ .44 $ .60
General Partner: (30 Units) $ 5.45 $ 7.09
========= =========
The accompanying notes are an integral part of these statements.
4
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
JUNE 30, 1997, AND JUNE 30, 1996
1997 1996
---- ----
REVENUES:
Leasing $ 2,571 $ 14,667
Interest Income 20,334 19,623
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Total Revenues 22,905 34,290
EXPENSES:
Professional Fees 39,500 17,500
Equipment Management Fees (Note B) 0 1,140
Other Expenses 18,737 6,820
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Total Expenses 58,237 25,460
--------- ---------
Net Income (Loss) $ (35,332) $ 8,830
========= =========
Net Income per unit, based on the daily weighted
average number of units outstanding:
Limited Partner: (7106.92, 7,151.000 Units) $ (4.72) $ 1.17
General Partner: (30 Units) $ (58.89) $ 13.98
========= =========
The accompanying notes are an integral part of these statements.
5
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MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL
FOR THE SIX MONTHS ENDED
JUNE 30, 1997, AND JUNE 30, 1996
General Limited
Partner Partners Total
------- -------- -----
Balance, December 31, 1995 $(145,016) $1,252,360 $1,107,344
Distribution to Partners 0 (117,182) (117,182)
Net Income for the Period 442 8,388 8,830
--------- ---------- ----------
Balance, JUNE 30, 1996 $(144,574) $1,143,566 $ 998,992
========= ========== ==========
Balance, December 31, 1996 $(143,543) $1,042,702 $ 899,159
Adjustment on Liquidation 145,310 (145,310) 0
Distribution to Partners -- (38,827) (38,827)
Liquidation Proceeds -- (825,000) $ (825,000)
Net Loss for the Period (1,767) (33,565) (35,332)
--------- ---------- ----------
Balance, JUNE 30, 1997 $ 0 $ 0 $ 0
========= ========== ==========
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 SIX MONTHS ENDED
JUNE 30, 1997, AND JUNE 30, 1996
1997 1996
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ (35,332) $ 8,830
Adjustments to reconcile net income to net cash
provided by (used in) operating expenses:
Decrease in other assets 108,331 298,896
(Decrease)in accrued expenses 38,017 (37,053)
Amortization of unearned interest (2,571) (14,667)
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Total adjustments 143,776 247,176
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NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES 108,444 256,005
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CASH FLOWS FROM INVESTING ACTIVITIES:
Collection of net investment in direct
financing leases 0 77,361
(Decrease in net sales tax payable (9,058) (1,158)
NET CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES (9,058) 76,203
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CASH FLOWS FROM FINANCING ACTIVITIES:
Cash paid on notes payable 0 0
Distributions paid to partners (38,827) (117,182)
Liquidation of Partnership Units (825,000) 0
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NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES (863,827) (117,182)
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NET INCREASE/(DECREASE) IN
CASH EQUIVALENTS (764,441) 215,027
CASH EQUIVALENTS, Beginning of Period 814,709 617,060
CASH EQUIVALENTS, End of Period $ 50,268 $ 832,087
========== ==========
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 SUMJUNY 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. The Partnership ceased its operations on June 30, 1997 and as of this
date liquidated all partnership interests.
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. Shortly after the liquidation made on June 30, 1997, the partnership's
outside auditors Grant Thornton will initiate early preparation of the
partnership's tax return and related K-1s for the short year ending June 30,
1997.
NOTE B - RELATED PARTY TRANSACTIONS
The General Partner acted in the capacity of equipment manager for the
Partnership During the six months ended JUNE 30, 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 1,140
8
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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. Liquidation Proceeds
were based upon a per unit value computed by dividing net cash available for
distribution (after adjustment for estimated costs of liquidation) by
outstanding limited partnership units. The liquidation value per unit was
$116.08 per $1,000 (1 unit) invested.
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. This distribution was concluded as of June 30, 1997.
Furthermore, This 10QSB shall be considered the final submission made under the
requirements of the Securities Exchange Act of 1934.
9
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
For the three months ended JUNE 30, 1997 and 1996, leasing revenues totalled
none and $ 6,894, respectively, and interest income totalled $10,099 and
$10,281, respectively.
Net income for the three months ended JUNE 30, 1997, was $ 3,270 or $ .44 per
Limited Partner unit as compared with $ 4,259 or $ .60 per Limited Partner unit
for the three months ended JUNE 30, 1996.
The Partnership's primary source of funds for the three months ended JUNE 30,
1997 and 1996, was from interest earnings.
10
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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 JUNE 30, 1997.
Item 5. Other Information
The Partnership has concluded its operations as of June 30, 1997. Any proceeds
remaining after satisfaction of the Partnerships estimated liquidation costs
will be returned on a prorata basis to Limited Partners of record at the date of
liquidation, June 30, 1997.
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 JUNE 30, 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: August 17, 1997
MEDICAL EQUIPMENT INCOME FUND, LIMITED PARTNERSHIP
By: Vision Limited Partnership, General Partner
By: Vision Capital Management, Inc., General Partner
By: /s/ Howard Rothman
-----------------------------------
Howard M. Rothman, Executive Vice President,
Chief Operating Officer, Secretary, and
Director
/s/ Eric Gaffin
-----------------------------------
Eric Gaffin, Acting Controller
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 50,268
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 50,268
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 50,268
<CURRENT-LIABILITIES> 46,518
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 50,268
<SALES> 0
<TOTAL-REVENUES> 22,905
<CGS> 0
<TOTAL-COSTS> 58,237
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (35,332)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (35,332)
<EPS-PRIMARY> (4.72)
<EPS-DILUTED> 0
</TABLE>
