<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1996
------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________________ to _______________________
----------------------
For Quarter Ended March 31, 1996 Commission File No. 0-19134
American Income Partners V-C Limited Partnership
- - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-3077437
- - ------------------------------ --------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
98 North Washington Street, Boston, MA 02114
- - ---------------------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 854-5800
-----------------------------
- - --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
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
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court 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 No
--- ---
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
INDEX
Page
--------
PART I. FINANCIAL INFORMATION:
<TABLE>
<CAPTION>
Item 1. Financial Statements
<S> <C>
Statement of Financial Position
at March 31, 1996 and December 31, 1995 3
Statement of Operations
for the three months ended March 31, 1996 and 1995 4
Statement of Cash Flows
for the three months ended March 31, 1996 and 1995 5
Notes to the Financial Statements 6-8
</TABLE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-12
PART II. OTHER INFORMATION:
Items 1 - 6 13
2
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
STATEMENT OF FINANCIAL POSITION
March 31, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- ------------
<S> <C> <C>
ASSETS
- - ------
Cash and cash equivalents $1,274,682 $1,173,376
Rents receivable, net of allowance for
doubtful accounts of $15,000 209,429 178,631
Accounts receivable - affiliate 301,696 118,331
Equipment at cost, net of accumulated
depreciation of $17,777,323
and $17,709,239 at March 31, 1996
and December 31, 1995, respectively 4,125,177 4,508,469
---------- ----------
Total assets $5,910,984 $5,978,807
========== ==========
</TABLE>
LIABILITIES AND PARTNERS' CAPITAL
- - ---------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Notes payable $ 708,606 $ 786,755
Accrued interest 5,070 5,944
Accrued liabilities 55,750 20,000
Accrued liabilities - affiliate 35,156 6,765
Deferred rental income 139,678 24,997
Cash distributions payable to partners 367,280 489,707
---------- ----------
Total liabilities 1,311,540 1,334,168
---------- ----------
Partners' capital (deficit):
General Partner (801,537) (799,277)
Limited Partnership Interests
(930,443 Units; initial
purchase price of $25 each) 5,400,981 5,443,916
---------- ----------
Total partners' capital 4,599,444 4,644,639
---------- ----------
Total liabilities and partners'
capital $5,910,984 $5,978,807
========== ==========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
3
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
for the three months ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
--------- ----------
<S> <C> <C>
Income:
Lease revenue $724,023 $ 945,079
Interest income 14,748 11,851
Gain on sale of equipment 78,602 287,424
-------- ----------
Total income 817,373 1,244,354
-------- ----------
Expenses:
Depreciation and amortization 359,664 657,129
Interest expense 13,318 54,821
Equipment management fees -
affiliate 40,593 37,907
Operating expenses - affiliate 81,713 38,940
-------- ----------
Total expenses 495,288 788,797
-------- ----------
Net income $322,085 $ 455,557
======== ==========
Net income
per limited partnership unit $ 0.33 $ 0.47
======== ==========
Cash distribution declared
per limited partnership unit $ 0.37 $ 0.50
======== ==========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
4
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS
for the three months ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
Cash flows from (used in) operating
activities:
Net income $ 322,085 $ 455,557
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation and amortization 359,664 657,129
Gain on sale of equipment (78,602) (287,424)
Changes in assets and liabilities
Decrease (increase) in:
rents receivable (30,798) 83,561
accounts receivable - affiliate (183,365) 76,126
Increase (decrease) in:
accrued interest (874) 4,407
accrued liabilities 35,750 (5,500)
accrued liabilities - affiliate 28,391 (53,722)
deferred rental income 114,681 1,282
---------- -----------
Net cash from operating
activities 566,932 931,416
---------- -----------
Cash flows from investing activities:
Proceeds from equipment sales 102,230 378,229
---------- -----------
Net cash from investing
activities 102,230 378,229
---------- -----------
Cash flows used in financing activities:
Principal payments - notes payable (78,149) (629,997)
Distributions paid (489,707) (612,133)
---------- -----------
Net cash used in financing
activities (567,856) (1,242,130)
---------- -----------
Net increase in cash and cash 101,306 67,515
equivalents
Cash and cash equivalents at beginning
of period 1,173,376 648,744
---------- -----------
Cash and cash equivalents at end of
period $1,274,682 $ 716,259
========== ===========
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest $ 14,192 $ 50,414
========== ===========
</TABLE>
.
The accompanying notes are an integral part
of these financial statements.
5
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
Notes to the Financial Statements
March 31, 1996
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
- - ------------------------------
The financial statements presented herein are prepared in conformity with
generally accepted accounting principles and the instructions for preparing Form
10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
Commission and are unaudited. As such, these financial statements do not include
all information and footnote disclosures required under generally accepted
accounting principles for complete financial statements and, accordingly, the
accompanying financial statements should be read in conjunction with the
footnotes presented in the 1995 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1995 Annual Report.
In the opinion of management, all adjustments (consisting of normal and
recurring adjustments) considered necessary to present fairly the financial
position at March 31, 1996 and December 31, 1995 and results of operations for
the three month periods ended March 31, 1996 and 1995 have been made and are
reflected.
NOTE 2 - CASH
- - -------------
At March 31, 1996, the Partnership had $1,270,000 invested in reverse
repurchase agreements secured by U.S. Treasury Bills or interests in U.S.
Government securities.
NOTE 3 - REVENUE RECOGNITION
- - ----------------------------
Rents are payable to the Partnership monthly, quarterly or semi-annually and
no significant amounts are calculated on factors other than the passage of time.
The leases are accounted for as operating leases and are noncancellable. Rents
received prior to their due dates are deferred. Future minimum rents of
$4,230,816 are due as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
For the year ending March 31, 1997 $2,367,718
1998 1,307,763
1999 492,039
2000 31,648
2001 31,648
-----------
Total $ 4,230,816
===========
</TABLE>
6
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
Notes to the Financial Statements
(Continued)
NOTE 4 - EQUIPMENT
- - ------------------
The following is a summary of equipment owned by the Partnership at March 31,
1996. In the opinion of the American Finance Group ("AFG"), the acquisition cost
of the equipment did not exceed its fair market value.
<TABLE>
<CAPTION>
Lease Term Equipment
Equipment Type (Months) at Cost
- - ------------------------- ---------- ------------
<S> <C> <C>
Aircraft 1-36 $ 9,846,584
Vessels 57 2,782,137
Construction and mining 6-84 2,550,457
Communications 12-84 1,790,243
Computers and peripherals 12-60 1,727,818
Retail store fixtures 12-72 1,347,040
Materials handling 1-60 1,052,701
Furniture and fixtures 84 382,117
Motor vehicles 36 238,583
Locomotives 48-78 184,820
------------
Total equipment cost 21,902,500
Accumulated depreciation (17,777,323)
------------
Equipment, net of accumulated depreciation $ 4,125,177
============
</TABLE>
At March 31, 1996, the Partnership's equipment portfolio included equipment
having a proportionate original cost of $14,535,873, representing approximately
66% of total equipment cost.
The summary above includes equipment held for re-lease or sale with a cost and
net book value of approximately $1,653,000 and $449,000, respectively, at March
31, 1996. The equipment includes the Partnership's proportionate interest in a
Boeing 727-251 Advanced aircraft (the "Aircraft"), formerly leased to Northwest
Airlines, Inc., having a cost and net book value of $583,038 and $63,559,
respectively, at March 31, 1996. This aircraft was returned upon expiration of
its lease term on November 30, 1995 and is currently undergoing heavy
maintenance expected to cost the Partnership approximately $36,000, all of which
was accrued during the three months ended March 31, 1996. The Partnership
entered into a new 28-month lease agreement with Transmeridian Airlines to
release the Aircraft at a base rent to the Partnership of $4,290 per month upon
completion of the heavy maintenance.
Effective January 1, 1996, the Partnership adopted Financial Accounting
Standards Board Statement No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of, which requires impairment
losses to be recorded on long-lived assets used in operations when indicators of
impairment are present and the undiscounted cash flows estimated to be generated
by those assets are less than the assets' carrying amount. Statement 121 also
addresses the accounting for long-lived assets that are expected to be disposed
of. Adoption of this statement did not have a material impact on the financial
statements of the Partnership.
7
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
Notes to the Financial Statements
(Continued)
NOTE 5 - RELATED PARTY TRANSACTIONS
- - -----------------------------------
All operating expenses incurred by the Partnership are paid by AFG on behalf
of the Partnership and AFG is reimbursed at its actual cost for such
expenditures. Fees and other costs incurred during each of the three month
periods ended March 31, 1996 and 1995, which were paid or accrued by the
Partnership to AFG or its Affiliates, are as follows:
<TABLE>
<CAPTION>
1996 1995
--------- --------
<S> <C> <C>
Equipment management fees $ 40,593 $37,907
Administrative charges 5,250 3,000
Reimbursable operating expenses
due to third parties 76,463 35,940
-------- -------
Total $122,306 $76,847
======== =======
</TABLE>
All rents and proceeds from the sale of equipment are paid directly to either
AFG or to a lender. AFG temporarily deposits collected funds in a separate
interest-bearing escrow account prior to remittance to the Partnership. At March
31, 1996, the Partnership was owed $301,696 by AFG for such funds and the
interest thereon. These funds were remitted to the Partnership in April 1996.
NOTE 6 - NOTES PAYABLE
- - ----------------------
Notes payable at March 31, 1996 consisted of installment notes of $708,606
payable to banks and institutional lenders. All of the installment notes are
non-recourse, two notes with interest rates of 9.5% and one note which bears a
fluctuating interest rate based on the London Inter-Bank Offered Rate ("LIBOR")
plus 1.5%. At March 31, 1996, the applicable LIBOR rate was approximately 6.8%.
The installment notes are collateralized by the equipment and assignment of the
related lease payments and will be fully amortized by noncancellable rents. The
carrying amount of notes payable approximates fair value at March 31, 1996.
The annual maturities of the installment notes payable are as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
For the year ending March 31, 1997 $391,175
1998 317,431
---------
Total $708,606
=========
</TABLE>
NOTE 7 - SUBSEQUENT EVENT
- - -------------------------
Pursuant to its agreements with PLM International, Inc., referred to in Note 8
of the Partnership's 1995 financial statements, American Finance Group agreed to
change its name and logo, except where they are used in connection with the
Partnership and other affiliated investment programs. For all other purposes,
American Finance Group will operate as Equis Financial Group effective April 2,
1996.
8
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
- - --------------------------------------------------------------------------------
of Operations.
- - --------------
Three months ended March 31, 1996 compared to the three months ended March 31,
- - ------------------------------------------------------------------------------
1995:
- - -----
Overview
- - --------
As an equipment leasing partnership, the Partnership was organized to acquire
a diversified portfolio of capital equipment subject to lease agreements with
third parties. The Partnership was designed to progress through three principal
phases: acquisitions, operations, and liquidation. During the operations phase,
a period of approximately six years, all equipment in the Partnership's
portfolio will progress through various stages. Initially, all equipment will
generate rental revenues under primary term lease agreements. During the life of
the Partnership, these agreements will expire on an intermittent basis and
equipment held pursuant to the related leases will be renewed, re-leased or
sold, depending on prevailing market conditions and the assessment of such
conditions by AFG to obtain the most advantageous economic benefit. Over time, a
greater portion of the Partnership's original equipment portfolio will become
available for remarketing and cash generated from operations and from sales or
refinancings will begin to fluctuate. Ultimately, all equipment will be sold and
the Partnership will be dissolved. The Partnership's operations commenced in
1990.
Results of Operations
- - ---------------------
For the three months ended March 31, 1996, the Partnership recognized lease
revenue of $724,023 compared to $945,079 for the same period in 1995. The
decrease in lease revenue from 1995 to 1996 was expected and resulted
principally from primary lease term expirations and the sale of equipment. The
Partnership also earns interest income from temporary investments of rental
receipts and equipment sales proceeds in short-term instruments.
The Partnership's equipment portfolio includes certain assets in which the
Partnership holds a proportionate ownership interest. In such cases, the
remaining interests are owned by AFG or an affiliated equipment leasing program
sponsored by AFG. Proportionate equipment ownership enables the Partnership to
further diversify its equipment portfolio by participating in the ownership of
selected assets, thereby reducing the general levels of risk which could result
from a concentration in any single equipment type, industry or lessee. The
Partnership and each affiliate individually report, in proportion to their
respective ownership interests, their respective shares of assets, liabilities,
revenues, and expenses associated with the equipment.
For the three months ended March 31, 1996, the Partnership sold equipment
having a net book value of $23,628 to existing lessees and third parties. These
sales resulted in a net gain, for financial statement purposes, of $78,602
compared to a net gain of $287,424 on equipment having a net book value of
$90,805 for the same period in 1995.
It cannot be determined whether future sales of equipment will result in a net
gain or a net loss to the Partnership, as such transactions will be dependent
upon the condition and type of equipment being sold and its marketability at the
time of sale. In addition, the amount of gain or loss reported for financial
statement purposes is partly a function of the amount of accumulated
depreciation associated with the equipment being sold.
The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including AFG's ability to sell and re-lease
equipment. Changing market conditions, industry trends, technological advances,
and many other events can converge to enhance or detract from asset values at
any given time. AFG attempts to monitor these changes in order to identify
opportunities which may be advantageous to the Partnership and which will
maximize total cash returns for each asset.
9
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
The total economic value realized upon final disposition of each asset is
comprised of all primary lease term revenue generated from that asset, together
with its residual value. The latter consists of cash proceeds realized upon the
asset's sale in addition to all other cash receipts obtained from renting the
asset on a re-lease, renewal or month-to-month basis. The Partnership classifies
such residual rental payments as lease revenue. Consequently, the amount of gain
or loss reported in the financial statements is not necessarily indicative of
the total residual value the Partnership achieved from leasing the equipment.
Depreciation and amortization expense was $359,664 and $657,129 for the three
months ended March 31, 1996 and 1995, respectively. For financial reporting
purposes, to the extent that an asset is held on primary lease term, the
Partnership depreciates the difference between (i) the cost of the asset and
(ii) the estimated residual value of the asset on a straight-line basis over
such term. For purposes of this policy, estimated residual values represent
estimates of equipment values at the date of primary lease expiration. To the
extent that an asset is held beyond its primary lease term, the Partnership
continues to depreciate the remaining net book value of the asset on a straight-
line basis over the asset's remaining economic life.
Interest expense was $13,318, or 1.8% of lease revenue for the three months
ended March 31, 1996 compared to $54,821, or 5.8% of lease revenue for the same
period in 1995. Interest expense in future periods will continue to decline in
amount and as a percentage of lease revenue as the principal balance of notes
payable is reduced through the application of rent receipts to outstanding debt.
Management fees were 5.6% of lease revenue for the three months ended March
31, 1996 compared to 4% of lease revenue for the same period in 1995. Management
fees during the three months ended March 31, 1996 include $7,731, resulting from
an underaccrual in 1995. Management fees are based on 5% of gross lease revenue
generated by operating leases and 2% of gross lease revenue generated by full
payout leases.
Operating expenses consist principally of administrative charges, professional
service costs, such as audit and legal fees, as well as printing, distribution
and remarketing expenses. In certain cases, equipment storage or repairs and
maintenance costs may be incurred in connection with equipment being remarketed.
Collectively, operating expenses represented 11.3% and 4.1% of lease revenue for
the three months ended March 31, 1996 and 1995, respectively. The increase in
operating expenses from 1995 to 1996 was due primarily to heavy maintenance
costs incurred or accrued in connection with certain of the Partnership's Boeing
727 aircraft. The amount of future operating expenses cannot be predicted with
certainty; however, such expenses are usually higher during the acquisition and
liquidation phases of a partnership. Other fluctuations typically occur in
relation to the volume and timing of remarketing activities.
Liquidity and Capital Resources and Discussion of Cash Flows
- - ------------------------------------------------------------
The Partnership by its nature is a limited life entity which was established
for specific purposes described in the preceding "Overview". As an equipment
leasing program, the Partnership's principal operating activities derive from
asset rental transactions. Accordingly, the Partnership's principal source of
cash from operations is provided by the collection of periodic rents. These cash
inflows are used to satisfy debt service obligations associated with leveraged
leases, and to pay management fees and operating costs. Operating activities
generated net cash inflows of $566,932 and $931,416 for the three months ended
March 31, 1996 and 1995, respectively. Future renewal, re-lease and equipment
sale activities will continue to cause a gradual decline in the Partnership's
lease revenue and corresponding sources of operating cash. Overall, expenses
associated with rental activities, such as management fees, and net cash flow
from operating activities will also continue to decline as the Partnership
experiences a higher frequency of remarketing events.
10
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
Ultimately, the Partnership will dispose of all assets under lease. This will
occur principally through sale transactions whereby each asset will be sold to
the existing lessee or to a third party. Generally, this will occur upon
expiration of each asset's primary or renewal/re-lease term. In certain
instances, casualty or early termination events may result in the disposal of an
asset. Such circumstances are infrequent and usually result in the collection of
stipulated cash settlements pursuant to terms and conditions contained in the
underlying lease agreements.
Cash realized from asset disposal transactions is reported under investing
activities on the accompanying Statement of Cash Flows. During the three months
ended March 31, 1996, the Partnership realized $102,230 in equipment sale
proceeds compared to $378,229 for the same period in 1995. Future inflows of
cash from asset disposals will vary in timing and amount and will be influenced
by many factors including, but not limited to, the frequency and timing of lease
expirations, the type of equipment being sold, its condition and age, and future
market conditions.
On November 30, 1995, upon the expiration of its lease term, Northwest
Airlines, Inc. ("Northwest"), returned a Boeing 727-251 Advanced aircraft (the
"Aircraft") in which the Partnership has a 6% ownership interest with a cost and
net book value to the Partnership of $583,038 and $63,559, respectively, at
March 31, 1996. The Aircraft is currently undergoing heavy maintenance expected
to cost the Partnership approximately $36,000, all of which was accrued during
the three months ended March 31, 1996. The Partnership entered into a new 28-
month lease agreement with Transmeridian Airlines to release the Aircraft at a
base rent to the Partnership of $4,290 per month upon completion of the heavy
maintenance. A second aircraft, in which the Partnership has a 34% ownership
interest, will be returned by Northwest upon the expiration of its lease on
December 31, 1996. The Partnership's interest in the aircraft had a cost and net
book value of $3,770,040 and $619,404, respectively, at March 31, 1996.
The Partnership obtained long-term financing in connection with certain
equipment leases. The repayments of principal related to such indebtedness are
reported as a component of financing activities. Each note payable is recourse
only to the specific equipment financed and to the minimum rental payments
contracted to be received during the debt amortization period (which period
generally coincides with the lease rental term). As rental payments are
collected, a portion or all of the rental payment is used to repay the
associated indebtedness. In future periods, the amount of cash used to repay
debt obligations will continue to decline as the principal balance of notes
payable is reduced through the collection and application of rents.
Cash distributions to the General Partner and Recognized Owners are declared
and generally paid within fifteen days following the end of each calendar
quarter. The payment of such distributions is presented as a component of
financing activities. For the three months ended March 31, 1996, the Partnership
declared total cash distributions of Distributable Cash From Operations and
Distributable Cash From Sales and Refinancings of $367,280. In accordance with
the Amended and Restated Agreement and Certificate of Limited Partnership, the
Recognized Owners were allocated 95% of these distributions, or $348,916, and
the General Partner was allocated 5%, or $18,364. The first quarter 1996 cash
distribution was paid on April 15, 1996.
Cash distributions paid to the Recognized Owners consist of both a return of
and a return on capital. To the extent that cash distributions consist of Cash
From Sales or Refinancings, substantially all of such cash distributions should
be viewed as a return of capital. Cash distributions do not represent and are
not indicative of yield on investment. Actual yield on investment cannot be
determined with any certainty until conclusion of the Partnership and will be
dependent upon the collection of all future contracted rents, the generation of
renewal and/or re-lease rents, and the residual value realized for each asset at
its disposal date. Future market conditions, technological changes, the ability
of AFG to manage and remarket the assets, and many other events and
circumstances, could enhance or detract from individual asset yields and the
collective performance of the Partnership's equipment portfolio.
11
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
The future liquidity of the Partnership will be influenced by the foregoing
and will be greatly dependent upon the collection of contractual rents and the
outcome of residual activities. The General Partner anticipates that cash
proceeds resulting from these sources will satisfy the Partnership's future
expense obligations. However, the amount of cash available for distribution in
future periods will fluctuate. Equipment lease expirations and asset disposals
will cause the Partnership's net cash from operating activities to diminish over
time; and equipment sale proceeds will vary in amount and period of realization.
In addition, the Partnership may be required to incur asset refurbishment or
upgrade costs in connection with future remarketing activities. Accordingly,
fluctuations in the level of quarterly cash distributions will occur during the
life of the Partnership.
12
<PAGE>
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Response: None
Item 2. Changes in Securities
Response: None
Item 3. Defaults upon Senior Securities
Response: None
Item 4. Submission of Matters to a Vote of Security Holders
Response: None
Item 5. Other Information
Response: None
Item 6(a). Exhibits
Response: None
Item 6(b). Reports on Form 8-K
Response: None
13
<PAGE>
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below on behalf of the registrant and in the capacity and
on the date indicated.
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
By: AFG Leasing IV Incorporated, a Massachusetts
corporation and the General Partner of the
Registrant.
By: /s/ Michael J. Butterfield
---------------------------
Michael J. Butterfield
Treasurer of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Accounting Officer)
Date: May 13, 1996
-------------------------
By: ls/ Gary Romano
---------------------------
Gary M. Romano
Clerk of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Financial Officer)
Date: May 13, 1996
-------------------------
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,274,682
<SECURITIES> 0
<RECEIVABLES> 526,125
<ALLOWANCES> 15,000
<INVENTORY> 0
<CURRENT-ASSETS> 1,785,807
<PP&E> 21,902,500
<DEPRECIATION> 17,777,323
<TOTAL-ASSETS> 5,910,984
<CURRENT-LIABILITIES> 602,934
<BONDS> 708,606
0
0
<COMMON> 0
<OTHER-SE> 4,599,444
<TOTAL-LIABILITY-AND-EQUITY> 5,910,984
<SALES> 724,023
<TOTAL-REVENUES> 817,373
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 481,970
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,318
<INCOME-PRETAX> 322,085
<INCOME-TAX> 0
<INCOME-CONTINUING> 322,085
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 322,085
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
