UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 For the fiscal quarter ended
March 31, 1996.
[ ] 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 33-27746
-----------------------
PLM EQUIPMENT GROWTH FUND IV
(Exact name of registrant as specified in its charter)
California 94-3090127
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
One Market, Steuart Street Tower,
Suite 900, San Francisco, CA 94105-1301
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (415) 974-1399
-----------------------
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>
PLM EQUIPMENT GROWTH FUND IV
(A Limited Partnership)
BALANCE SHEETS
(in thousands of dollars)
<TABLE>
ASSETS
<CAPTION>
March 31, December 31,
1996 1995
---------------------------------
<S> <C> <C>
Equipment held for operating leases $ 116,766 $ 131,783
Less accumulated depreciation (66,647) (73,508)
---------------------------------
50,119 58,275
Equipment held for sale 5,592 --
---------------------------------
Net equipment 55,711 58,275
Cash and cash equivalents 964 1,236
Restricted cash 675 575
Investments in unconsolidated special purpose entities 6,995 7,380
Accounts receivable, net of allowance for doubtful
accounts of $1,755 in 1996 and $775 in 1995 2,863 3,606
Notes receivable 207 325
Deferred charges, net of accumulated
amortization of $2,178 in 1996 and $2,144 in 1995 300 334
Prepaid expenses and other assets (25) 111
---------------------------------
Total assets $ 67,690 $ 71,842
=================================
LIABILITIES' AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 576 $ 332
Due to affiliates 476 666
Prepaid deposits and reserve for repairs 3,443 3,569
Notes payable 30,800 30,800
---------------------------------
Total liabilities 35,295 35,367
Partners capital:
Limited Partners (8,637,655 Limited
Partnership Units at March 31, 1996
and 8,643,770 Limited Partnership Units
at December 31, 1995) 32,395 36,475
General Partner -- --
---------------------------------
Total partners' capital 32,395 36,475
---------------------------------
Total liabilities and partners' capital $ 67,690 $ 71,842
=================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND IV
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(in thousands of dollars except per unit amounts)
<TABLE>
<CAPTION>
For the three months ended
March 31,
1996 1995
-------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 4,556 $ 5,266
Interest and other income 31 90
Net gain on disposition
of equipment 9 8
-------------------------------
Total revenues 4,596 5,364
Expenses:
Depreciation and amortization 2,405 3,023
Management fees to affiliate 206 285
Repairs and maintenance 1,288 458
Interest expense 751 751
Insurance expense to affiliates 44 104
Other insurance 164 160
Marine equipment operating expenses 554 733
General and administrative expenses
to affiliates 122 136
Other general and administrative
expense 208 110
Provision for bad debt expense 909 --
Loss on revaluation of equipment -- 417
-------------------------------
Total expenses 6,651 6,177
Equity in net loss of unconsolidated
special purpose entities (147) --
-------------------------------
Net loss $ (2,202) $ (813)
===============================
Partners' share of net income (loss):
Limited Partners $ (2,293) $ (881)
General Partner 91 68
-------------------------------
Total $ (2,202) $ (813)
===============================
Net loss per Depositary Unit (8,637,655
Units at March 31, 1996 and 8,643,903
Units at March 31, 1995) $ (0.27) $ (0.10)
===============================
Cash distributions $ 1,818 $ 1,406
===============================
Cash distributions per Depositary Unit $ 0.20 $ 0.175
===============================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND IV
(A Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
For the period from December 31, 1994 to March 31, 1996
(in thousands of dollars)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
---------------------------------------------------
<S> <C> <C> <C>
Partners' capital at December 31, 1994 $ 46,776 $ -- $ 46,776
Net income (loss) (3,930) 319 (3,611)
Cash distributions (6,124) (319) (6,443)
Repurchase of Depositary Units (247) -- (247)
---------------------------------------------------
Partners' capital at December 31, 1995 36,475 -- 36,475
Net income (loss) (2,293) 91 (2,202)
Cash distributions (1,727) (91) (1,818)
Repurchase of Depositary Units (60) -- (60)
---------------------------------------------------
Partner's capital at March 31, 1996 $ 32,395 $ -- $ 32,395
===================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND IV
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
For the three months ended
ended March 31,
1996 1995
----------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (2,202) $ (813)
Adjustments to reconcile net loss to net cash provided
by operating activities:
Depreciation and amortization 2,405 3,023
Net gain on disposition of equipment (9) (8)
Cash distributions from unconsolidated special
purpose entities in excess of income 385 --
Loss on revaluation of equipment -- 417
Changes in operating assets and liabilities:
Restricted cash (100) --
Accounts and notes receivable, net 861 (768)
Prepaid expenses and other assets 136 5
Due to affiliates (192) (192)
Accounts payable and accrued expenses 244 72
Prepaid deposits and reserve for repairs (119) (163)
----------------------------------
Net cash provided by operating activities 1,409 1,573
----------------------------------
Investing activities:
Purchase of equipment and capital improvements (7) (216)
Payments of acquisition fees to affiliates -- 9
Payments of lease negotiation fees to affiliates -- (2)
Proceeds from disposition of equipment 204 161
----------------------------------
Net cash provided by (used in) investing activities 197 (48)
----------------------------------
Financing activities:
Repurchase of Limited Partnership Units (60) (246)
Cash distributions paid to Limited Partners (1,727) (1,338)
Cash distributions paid to General Partner (91) (68)
----------------------------------
Net cash used in financing activities (1,878) (1,652)
----------------------------------
Cash and cash equivalents:
Net decrease in cash and cash equivalents (272) (127)
Cash and cash equivalents at beginning of period 1,236 5,629
----------------------------------
Cash and cash equivalents at end of period $ 964 $ 5,502
==================================
Supplemental information:
Interest paid $ 751 $ 751
==================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND IV
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc., the
General Partner, the accompanying unaudited financial statements contain
all adjustments necessary, consisting primarily of normal recurring
accruals, to present fairly the financial position of PLM Equipment Growth
Fund IV (the "Partnership") as of March 31, 1996, the statements of
operations and cash flows for the three months ended March 31, 1996 and
1995, and the statement of changes in Partners' capital for the period from
December 31, 1994 to March 31, 1996. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted from the accompanying financial statements. For
further information, reference should be made to the financial statements
and notes thereto included in the Partnership's Annual Report on Form 10-K
for the year ended December 31, 1995, on file at the Securities and
Exchange Commission.
2. Investments in Unconsolidated Special Purpose Entities
Prior to 1996, the Partnership accounted for operating activities
associated with joint ownership of rental equipment as undivided interests,
including its proportionate share of each asset with similar wholly-owned
assets in its financial statements. Under generally accepted accounting
principles, the effects of such activities, if material, should be reported
using the equity method of accounting. Therefore, effective January 1,
1996, the Partnership adopted the equity method to account for its
investment in such jointly-held assets.
The principle differences between the previous accounting method and the
equity method relate to the presentation of activities relating to these
assets in the statement of operations. Whereas, under equity accounting the
Partnership's proportionate share is presented as a single net amount,
"Equity in net income (loss) of unconsolidated special purpose entities",
under the previous method, the Partnership's income statement reflected its
proportionate share of each individual item of revenue and expense.
Accordingly, the effect of adopting the equity method of accounting has no
cumulative effect on previously reported partner's capital or on the
Partnership's net income (loss) for the period of adoption. Because the
effects on previously issued financial statements of applying the equity
method of accounting to investments in jointly-owned assets are not
considered to be material to such financial statements taken as a whole,
previously issued financial statements have not been restated. However,
certain items have been reclassified in the previously issued balance sheet
to conform to the current period presentation.
The net investments in unconsolidated special purpose entities include the
following jointly-owned equipment (and related assets and liabilities) (in
thousands):
March 31, December 31,
1996 1995
--------------------------------
50% interest in a Bulk Carrier $ 3,376 $ 3,458
14% interest in Canadian Air Trust 3,619 3,922
================================
Net investments $ 6,995 $ 7,380
================================
<PAGE>
PLM EQUIPMENT GROWTH FUND IV
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
3. Equipment
Owned equipment held for operating leases is stated at cost. Equipment held
for sale is stated at the lower of the equipment's depreciated cost or net
realizable value and is subject to a pending contract for sale. Components
of owned equipment are as follows (in thousands):
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
---------------------------------
<S> <C> <C>
Equipment held for operating leases:
Rail equipment $ 14,888 $ 14,907
Marine containers 16,834 17,355
Marine vessels 26,980 26,980
Aircraft 51,111 51,111
Trailers 6,953 6,944
Mobile offshore drilling unit -- 14,486
---------------------------------
116,766 131,783
Less accumulated depreciation (66,647) (73,508)
---------------------------------
50,119 58,275
Equipment held for sale 5,592 --
---------------------------------
Net equipment $ 55,711 $ 58,275
=================================
</TABLE>
Revenues are earned by placing the equipment under operating leases which
are generally billed monthly or quarterly. Certain of the Partnership's
marine vessels and marine containers are leased to operators of
utilization-type leasing pools which include equipment owned by
unaffiliated parties. In such instances revenues received by the
Partnership consist of a specified percentage of revenues generated by
leasing the equipment to sublessees, after deducting certain direct
operating expenses of the pooled equipment. Rents for railcars are based on
mileage traveled or a fixed rate; rents for all other equipment are based
on fixed rates.
Equipment held for sale at March 31, 1996, included a Mobile Offshore
Drilling Unit (rig), which is currently on lease and subject to a pending
sale.
As of March 31, 1996, all equipment was either on lease or operating in
PLM-affiliated short-term trailer rental facilities, except for one
commercial aircraft, 19 railcars, and 77 marine containers. The net
carrying value of equipment off-lease was $5.0 million at March 31, 1996.
At December 31, 1995, 62 containers and one commuter aircraft were
off-lease with a net carrying value of $4.8 million.
During the three months ended March 31, 1996, the Partnership sold or
disposed of 87 marine containers and one railcar with an aggregate net book
value of $195,000 for aggregate proceeds of $204,000. During the three
months ended March 31, 1995, the Partnership disposed of 67 marine
containers with a net book value of $151,000 for proceeds of $159,000. One
of the aircraft was written down by $0.4 million in the first quarter of
1995.
<PAGE>
PLM EQUIPMENT GROWTH FUND IV
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
4. Cash Distribution
Cash distributions are recorded when paid and totaled $1.8 million and $1.4
million for the three months ended March 31, 1996 and 1995. Cash
distributions related to the first quarter results of $1.7 million will be
paid during May 1996, depending on whether the individual unitholder
elected to receive a monthly or quarterly distribution check. Cash
distributions to unitholders in excess of net income are deemed to be a
return of capital. All distributions to limited partners for the three
months ended March 31, 1996 and 1995, were deemed to be a return of
capital.
5. Debt
The General Partner has entered into a joint $25
million credit facility (the "Committed Bridge Facility") on behalf of the
Partnership, PLM Equipment Growth Fund II, PLM Equipment Growth Fund III,
PLM Equipment Growth Fund V, PLM Equipment Growth Fund VI, PLM Equipment
Growth & Income Fund VII and Professional Lease Management Income fund I
("Fund I"), all affiliated investment programs, and TEC Acquisub, Inc.
("TECAI"), an indirect wholly-owned subsidiary of the General Partner,
which may be used to provide interim financing of up to (i) 70% of the
aggregate book value or 50% of the aggregate net fair market value of
eligible equipment owned by an affiliate plus (ii) 50% of unrestricted cash
held by the borrower. The Committed Bridge Facility became available on
December 20, 1993, and was amended and restated on September 27, 1995 to
expire on September 30, 1996. The Committed Bridge Facility also provides
for a $5 million Letter of Credit Facility for the eligible borrowers.
Outstanding borrowings by Fund I, TECAI or PLM Equipment Growth Funds II
through VII reduce the amount available to each other under the Committed
Bridge Facility. Individual borrowings may be outstanding for no more than
179 days, with all advances due no later than September 30, 1996. The
Committed Bridge Facility prohibits the Partnership from incurring any
additional indebtedness. Interest accrues at either the prime rate or
adjusted LIBOR plus 2.5% at the borrowers option and is set at the time of
an advance of funds. Borrowings by the Partnership are guaranteed by the
General Partner. As of March 31, 1996, PLM Equipment Growth Fund V had
$5,610,000 in outstanding borrowings under the Committed Bridge Facility,
PLM Equipment Growth Fund VI had $11,220,000 and TECAI had $7,706,000.
Neither the Partnership, Fund I nor the other programs had any outstanding
borrowings. Due to the loan covenants of the senior debt, the Partnership
cannot access this line of credit at this time.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
(I) RESULTS OF OPERATIONS
Comparison of the Partnership's Operating Results for the Three Months Ended
March 31, 1996 and 1995
(A) Revenues
Total revenues of $4.6 million for the quarter ended March 31, 1996, decreased
from $5.4 million for the same period in 1995. This decrease in 1996 revenues
was due primarily to lower lease revenue in the first quarter of 1996, compared
to the same period in 1995.
(1) Lease Revenues
Lease revenues decreased to $4.6 million for the quarter ended March 31, 1996,
compared to $5.3 million in the same quarter of 1995. The following table
presents lease revenues earned by equipment type (in thousands):
<TABLE>
<CAPTION>
For the three months
ended March 31,
1996 1995
-----------------------------
<S> <C> <C>
Marine vessels $ 1,407 $ 2,030
Aircraft 1,305 1,823
Rail equipment 909 887
Trailers 526 166
Marine containers 322 300
Mobile offshore drilling units 87 60
=============================
$ 4,556 $ 5,266
=============================
</TABLE>
Although net loss was not affected by the change in accounting for
investments in unconsolidated special purpose entities, lease revenues decreased
$0.7 million in the first quarter of 1996, which included $0.4 million and $0.3
million in marine vessel and aircraft revenue, respectively, and represented
revenue for jointly-owned assets (refer to the "Equity in net loss of
unconsolidated special purpose entities" section below). The remaining decrease
in lease revenues are explained below:
(a) A decrease of $0.2 million in marine vessel revenue due to one marine
vessel being off-lease for scheduled drydocking repairs of 17 to 19 days in the
first quarter of 1996;
(b) A decrease of $0.2 million in aircraft revenue due to the sale of two
aircraft in the second quarter of 1995;
The above detailed decreases in revenue were partially offset by:
(c) An increase of $0.4 million in trailer revenue due to the addition of
333 trailers in the first nine months of 1995.
(2) Net gain on disposition of equipment totaled $9,000 in the first quarter
1996, as a result of the sale or disposal of 87 marine containers and one
railcar, with an aggregate net book value of $195,000 for proceeds of $204,000.
The Partnership generated a net gain of $8,000 for the same period in 1995, from
the disposal of 67 marine containers with a net book value of $151,000 and
proceeds of $159,000.
<PAGE>
(B) Expenses
Total expenses of $6.7 million for the quarter ended March 31, 1996, increased
from $6.2 million in the comparable period in 1995. Although net loss was not
affected as a result of the change in accounting for investments in
unconsolidated special purpose entities, expenses decreased $0.8 million in the
first quarter of 1996, which included $0.5 million in depreciation, $0.1 million
in marine equipment operating, and $0.1 million in bad debt expense, all
relating to jointly-owned assets (refer to the "Equity in net loss of
unconsolidated special purpose entities" section below). The increase in the
remaining expenses is explained below:
(a) A $0.9 million increase in repairs and maintenance for the overhaul of
four engines on an aircraft that has been off-lease since the end of 1994;
(b) A $1.0 million increase in bad debt expense reflecting the General
Partner's evaluation of the collectibility of receivables due from two aircraft
lessees that encountered financial difficulties;
(c) A decrease of $0.1 million in depreciation and amortization expense
from 1995 levels reflecting the Partnership's double-declining depreciation
method and the disposal of equipment during 1995 and 1996; partially offset by
depreciation expense on $11.0 million of equipment acquired during 1995;
(d) A decrease of $0.1 million in management fees to affiliates, reflecting
the lower levels of lease revenues in the first quarter of 1996 as compared to
the same period in 1995. Management fees are calculated as a monthly fee equal
to the lesser of (i) the fees which would be charged by an independent third
party for similar services for similar equipment or (ii) the sum of (A) 5% of
the Gross Lease Revenues attributable to equipment which is subject to Operating
Leases, and (B) 2% of the Gross Lease Revenues attributable to Equipment which
is subject to Full Payout Net leases, and (C) 7% of the Gross Lease Revenues
attributable to Equipment, if any, which was subject to per diem leasing
arrangements and thus is operated by the Partnership;
(e) Loss on revaluation of equipment of $0.4 million in 1995 resulted from
the reduction of the net book value of an aircraft to its estimated net
realizable value. This aircraft was sold in the second quarter of 1995. There
was no loss on revaluation of equipment in the first quarter of 1996.
(C) Equity in net loss of unconsolidated special purpose entities represents net
loss generated from jointly-owned assets. At March 31, 1996, the Partnership had
a 50%-owned marine vessel and a 14%-owned commercial aircraft. During the
quarter ended March 31, 1996, these assets generated revenues of $0.7 million
and expenses of $0.8 million, relating mostly to depreciation and dry dock
expenses, resulting in a net loss of $0.1 million.
(D) Net Loss
The Partnership's net loss increased to $2.2 million in the first quarter of
1996 from $0.8 million in the same period in 1995. In the first quarter of 1996,
the Partnership distributed $1.7 million to the Limited Partners, or $0.20 per
Limited Partnership Unit.
(II) FINANCIAL CONDITION - CAPITAL RESOURCES, LIQUIDITY, AND DISTRIBUTIONS
The General Partner purchased the Partnership's initial equipment portfolio with
capital raised from its initial equity offering and permanent debt financing. No
further capital contributions from original partners are permitted under the
terms of the Partnership's Limited Partnership Agreement. In addition the
Partnership, under its current loan agreement, does not have the capacity to
incur additional debt. The Partnership relies on operating cash flow to meet its
operating obligations, make cash distributions to partners, and increase the
Partnership's equipment portfolio with any remaining available surplus cash.
The Partnership has one loan outstanding totaling $30.8 million. This loan
is due in three yearly principal payments of $8.2 million starting July 1, 1997,
and one final payment of $6.2 million on July 1, 2000. The interest on the loan
is fixed at 9.75%. The loan agreement requires the Partnership to a certain
minimum net worth ratio based on 33.33% of the fair market value of equipment
plus cash. Current market conditions have resulted in decreasing market values
for the Partnership's equipment portfolio, however, at March 31,1996, the
Partnership was in compliance with the debt covenants.
The General Partner has entered into a joint $25 million credit facility
(the "Committed Bridge Facility") on behalf of the Partnership, PLM Equipment
Growth Fund II, PLM Equipment Growth Fund III, PLM Equipment Growth Fund VI, PLM
Equipment Growth Fund V, PLM Equipment Growth & Income Fund VII Professional
Lease Management Income fund I ("Fund I"), all affiliated investment programs,
and TEC Acquisub, Inc. ("TECAI"), an indirect wholly-owned subsidiary of the
General Partner, which may be used to provide interim financing of up to (i) 70%
of the aggregate book value or 50% of the aggregate net fair market value of
eligible equipment owned by an affiliate plus (ii) 50% of unrestricted cash held
by the borrower. The Committed Bridge Facility became available on December 20,
1993, and was amended and restated on September 27, 1995 to expire on September
30, 1996. The Committed Bridge Facility also provides for a $5 million Letter of
Credit Facility for the eligible borrowers. Outstanding borrowings by Fund I,
TECAI or PLM Equipment Growth Funds II through VII reduce the amount available
to each other under the Committed Bridge Facility. Individual borrowings may be
outstanding for no more than 179 days, with all advances due no later than
September 30, 1996. The Committed Bridge Facility prohibits the Partnership from
incurring any additional indebtedness. Interest accrues at either the prime rate
or adjusted LIBOR plus 2.5% at the borrowers option and is set at the time of an
advance of funds. Borrowings by the Partnership are guaranteed by the General
Partner. As of March 31, 1996, PLM Equipment Growth Fund V had $5,610,000 in
outstanding borrowings under the Committed Bridge Facility, and PLM Equipment
Growth Fund VI had $11,220,000 and TECAI had $7,706,000. Neither the
Partnership, Fund I nor the other programs had any outstanding borrowings. Due
to the loan covenants of the senior debt, the Partnership cannot access this
line of credit at this time. The General Partner is in negotiations to renew the
facility. The General Partner believes it will successfully negotiate an
extension of the facility prior to expiration on terms at least as favorable as
those in the current facility.
(III) REDEMPTION OF LIMITED PARTNERSHIP UNITS
Beginning January 1, 1993, and annually thereafter the Partnership was obligated
under certain conditions to redeem up to 2% of the outstanding Depositary Units
("Units") each year. The purchase price offered by the Partnership for the
outstanding Units is equal to 110% of the unrecovered principal attributable to
the Units. Unrecovered principal for any Unit will be equal to the excess of (i)
the capital contribution attributable to the Unit over (ii) the distributions
from any source paid with respect to the Unit. At March 31, 1996, the
Partnership had repurchased 6,115 units for a total repurchase price of $0.06
million. These units repurchased during the three months ended March 31, 1996
were a portion of the units identified for repurchase at December 31, 1995. From
inception through March 31, 1996, the Partnership has repurchased 112,345 units
for a total repurchase price of $1.5 million.
<PAGE>
(IV) TRENDS
The Partnership's operation of a diversified equipment portfolio in a broad base
of markets is intended to reduce its exposure to volatility in individual
equipment sectors. Throughout 1995 and the first part of 1996, market
conditions, supply and demand equilibrium, and other factors varied in several
markets. In the marine container and refrigerated over-the-road trailer markets,
oversupply conditions, industry consolidations, and other factors resulted in
falling rates and lower returns. In the dry over-the-road trailer markets,
strong demand and a backlog of new equipment deliveries produced high
utilization and returns. The marine vessel, rail, and mobile offshore drilling
unit markets could be generally categorized by increasing rates as the demand
for equipment is increasing faster than new additions net of retirements.
Finally, demand for narrowbody Stage II aircraft, such as those owned by the
Partnership, has increased as expected savings from newer narrowbody aircraft
have not materialized and deliveries of the newer aircraft have slowed down.
These trends are expected to continue for the near term. These different markets
have had individual effects on the performance of Partnership equipment - in
some cases resulting in declining performance, and in others, in improved
performance.
The ability of the Partnership to realize acceptable lease rates on its
equipment in the different equipment markets is contingent on many factors, such
as specific market conditions and economic activity, technological obsolescence,
governmental or other regulations, and others. The unpredictability of some of
these factors, or of their occurrence, makes it difficult for the General
Partner to clearly define trends or influences that may impact the performance
of the Partnership's equipment. The General Partner continuously monitors both
the equipment markets and the performance of the Partnership's equipment in
these markets. The General Partner may make an evaluation to reduce the
Partnership's exposure to equipment markets in which it determines that it
cannot operate equipment and achieve acceptable rates of return. Alternatively,
the General Partner may make a determination to enter equipment markets in which
it perceives opportunities to profit from supply-demand instabilities or other
market imperfections.
The Partnership intends to use excess cash flow, if any, after payment of
expenses, loan principal, and cash distributions to acquire additional equipment
during the first seven years of Partnership operations. The General Partner
believes these acquisitions may cause the Partnership to generate additional
earnings and cash flow for the Partnership.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
<PAGE>
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.
PLM EQUIPMENT GROWTH FUND IV
By: PLM Financial Services, Inc.
General Partner
Date: May 13, 1996
By:
/s/ David Davis
--------------------------
David Davis
Vice President and
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 964
<SECURITIES> 0
<RECEIVABLES> 4,618
<ALLOWANCES> 1,755
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 116,766
<DEPRECIATION> (66,647)
<TOTAL-ASSETS> 67,690
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 32,395
<TOTAL-LIABILITY-AND-EQUITY> 67,690
<SALES> 0
<TOTAL-REVENUES> 4,596
<CGS> 0
<TOTAL-COSTS> 5,900
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 751
<INCOME-PRETAX> (2,202)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,202)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,202)
<EPS-PRIMARY> (0.27)
<EPS-DILUTED> (0.27)
</TABLE>
