UNITED STATES
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
-----------------------------------
For the Quarter Ended
June 30, 1996 Commission File Number 0-18650
- --------------------- -------------------------------
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 36-3639399
- ------------------ ---------------------------
State or other IRS Employer Identification
jurisdiction of Number
incorporation or
organization
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
- --------------------------------- ----------------------------
Address of principal City, State, Zip Code
executive offices
Registrant's telephone number: (847) 240-6200
-----------------------------
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.
(1) Yes x No
--- ---
(2) Yes x No
--- ---
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
FORM 10-Q
---------
FOR THE QUARTER ENDED June 30, 1996
-----------------------------------
PART I - FINANCIAL INFORMATION
Item 1.
- -------
Index to Financial Statements
Balance Sheets
June 30, 1996 (unaudited)
December 31, 1995
Statements of Revenue and Expenses (unaudited)
For the three months ended June 30, 1996
For the three months ended June 30, 1995
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Statements of Changes in Partners' Equity
For the six months ended June 30, 1996
(unaudited)
Statements of Cash Flows (unaudited)
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Notes to Financial Statements (unaudited)
Item 2.
- -------
Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II - OTHER INFORMATION
Items 1-6.
- ----------
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
BALANCE SHEETS
--------------
June 30, 1996 - Unaudited
-------------------------
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ----------- ---------
ASSETS
- ------
Cash and cash equivalents $2,162,472 $ 1,944,665 $4,107,137
Installment contracts
receivable 147,523 515,798 663,321
Net investment in direct
financing leases 82,971 4,568,813 4,651,784
Diverted and other assets,
net 332,605 1,162,921 1,495,526
---------- ----------- -----------
$2,725,571 $ 8,192,197 $10,917,768
========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 43,126 $ 173,951 $ 217,077
Lessee rental deposits 116,635 455,658 572,293
Due to management company 139 486 625
---------- ----------- -----------
Total liabilities 159,900 630,095 789,995
Total partners' equity 2,565,671 7,562,102 10,127,773
---------- ----------- -----------
$2,725,571 $ 8,192,197 $10,917,768
========== =========== ===========
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
BALANCE SHEETS
--------------
December 31, 1995
-----------------
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ----------- ---------
ASSETS
- ------
Cash and cash equivalents $1,977,211 $ 1,432,420 $ 3,409,631
Installment contracts
receivable 215,476 753,390 968,866
Net investment in direct
financing leases 343,356 6,771,767 7,115,123
Diverted and other assets,
net 332,605 1,162,921 1,495,526
Restricted cash 20,152 70,460 90,612
---------- ----------- -----------
$2,888,800 $10,190,958 $13,079,758
========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 62,398 $ 246,147 $ 308,545
Lessee rental deposits 75,612 308,038 383,650
Due to management company 62 212 274
---------- ----------- -----------
Total liabilities 138,072 554,397 692,469
Total partners' equity 2,750,728 9,636,561 12,387,289
---------- ----------- -----------
$2,888,800 $10,190,958 $13,079,758
========== =========== ===========
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1996
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ----------- ---------
Revenue:
Lease income (Note 5) $ 40,445 $ 294,224 $ 334,669
Interest income 16,243 84,986 101,229
--------- --------- ---------
56,688 379,210 435,898
--------- --------- ---------
Expenses:
Management fees-New Era 71,099 261,395 332,494
General Partner's expense
reimbursement (Note 5) 16,579 57,968 74,547
Professional fees 22,134 81,908 104,042
Other operating expenses 745 2,940 3,685
--------- --------- ---------
110,557 404,211 514,768
--------- --------- ---------
Net loss $ (53,869) $ (25,001) $ (78,870)
========= ========= =========
Net loss - General Partner $ (539) $ (250) $ (789)
========= ========= =========
Net loss - Limited Partners $ (53,330) $ (24,751) $ (78,081)
========= ========= =========
Net loss per Limited
Partnership Unit $(1.20) $ (.16)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 44,468 155,509
====== =======
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1995
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ----------- ---------
Revenue:
Lease income $ 38,493 $ 387,602 $ 426,095
Interest income 31,402 111,783 143,185
-------- --------- ---------
69,895 499,385 569,280
-------- --------- ---------
Expenses:
Amortization of
organization and
equipment acquisition
costs 116 408 524
Management fees-New Era 65,888 333,815 399,703
General Partner's
expense reimbursement 30,712 107,380 138,092
Professional fees 49,850 182,458 232,308
Other operating expenses 5,654 25,496 31,150
-------- --------- ---------
152,220 649,557 801,777
-------- --------- ---------
Net loss $ (82,325) $(150,172) $(232,497)
========= ========= =========
Net loss -
General Partner $ (823) $ (1,502) $ (2,325)
========= ========= =========
Net loss -
Limited Partners $ (81,502) $(148,670) $(230,172)
========= ========= =========
Net loss per Limited
Partnership Unit $(1.83) $ (0.96)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 44,468 155,509
====== =======
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1996
--------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ----------- ---------
Revenue:
Lease income (Note 5) $ 56,140 $ 527,601 $ 583,741
Interest income 29,778 154,254 184,032
--------- --------- ----------
85,918 681,855 767,773
--------- --------- ----------
Expenses:
Management fees-New Era 142,205 532,623 674,828
General Partner's expense
reimbursement (Note 5) 74,575 260,745 335,320
Professional fees 47,558 172,340 219,898
Other operating expenses 6,637 24,784 31,421
--------- --------- ----------
270,975 990,492 1,261,467
--------- --------- ----------
Net loss $(185,057) $(308,637) $ (493,694)
========= ========= ==========
Net loss - General Partner $ (1,851) $ (3,086) $ (4,937)
========= ========= ==========
Net loss - Limited Partners $(183,206) $(305,551) $ (488,757)
========= ========= ==========
Net loss per Limited
Partnership Unit $(4.12) $ (1.96)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 44,468 155,509
====== =======
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1995
--------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ----------- ---------
Revenue:
Lease income $ 91,060 $ 835,601 $ 926,661
Interest income 50,354 184,973 235,327
-------- ---------- ----------
141,414 1,020,574 1,161,988
-------- ---------- ----------
Expenses:
Amortization of
organization and
equipment acquisition
costs 32,445 113,443 145,888
Management fees-New Era 141,456 761,167 902,623
General Partner's
expense reimbursement 73,020 255,306 328,326
Professional fees 76,743 277,786 354,529
Other operating expenses 9,111 42,144 51,255
-------- ---------- ----------
332,775 1,449,846 1,782,621
-------- ---------- ----------
Net loss $(191,361) $ (429,272) $(620,633)
========= ========== =========
Net loss -
General Partner $ (1,914) $ (4,293) $ (6,207)
========= ========== =========
Net loss -
Limited Partners $(189,447) $ (424,979) $(614,426)
========= ========== =========
Net loss per Limited
Partnership Unit $(4.26) $ (2.73)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 44,468 155,509
====== =======
[FN]
See accompanying notes to financial statements.
PAGE
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
STATEMENT OF CHANGES IN PARTNERS' EQUITY
----------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1995 $(344,238)* $2,806,086 $ 9,925,441 $12,387,289
Distributions to partners
(Note 3) (8,570) - (1,757,252) (1,765,822)
Net loss (4,937) (183,206) (305,551) (493,694)
Allocation of General
Partner's equity 357,745 (57,209) (300,536) -
---------- ---------- ----------- -----------
Balance, June 30, 1996 $ - $2,565,671 $ 7,562,102 $10,127,773
========== ========== =========== ===========
<FN>
* Balance as previously reported was $0 due to allocation of $55,358 and $288,880 to
Liquidating and Continuing Limited Partners' Equity, respectively.
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
-----------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
For the six months ended June 30, 1996
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
------------- ------------- -------------
<S> <C> <C> <C>
Cash flows from operating
activities:
Net loss $ (185,057) $ (308,637) $ (493,694)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Changes in assets and
liabilities:
Accounts payable and
accrued expenses (19,272) (72,196) (91,468)
Lessee rental deposits 41,023 147,620 188,643
Due to management company 77 274 351
------------ ------------ ------------
(163,229) (232,939) (396,168)
------------ ------------ ------------
Cash flows from investing
activities:
Principal collections on leases 260,385 2,202,954 2,463,339
Principal collections on
installment contracts
receivable 67,953 237,592 305,545
Release of restricted cash 20,152 70,460 90,612
------------ ------------ ------------
348,490 2,511,006 2,859,496
------------ ------------ ------------
Cash flows from financing
activities:
Distributions to Limited
Partners (a) - (1,757,252) (1,757,252)
Distributions to General Partner - (8,570) (8,570)
------------ ------------ ------------
- (1,765,822) (1,765,822)
------------ ------------ ------------
Net increase in cash
and cash equivalents 185,261 512,245 697,506
------------ ------------ ------------
Cash and cash equivalents:
Beginning of year 1,977,211 1,432,420 3,409,631
------------ ------------ ------------
End of second quarter $2,162,472 $ 1,944,665 $ 4,107,137
============ ============ ============
<FN>
(a) Distributions during the period were $0 per unit for Liquidating Limited Partners and $11.30 per
unit for Continuing Limited Partners (see Note 3).
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
STATEMENTS OF CASH FLOWS
-------------------------
For the six months ended June 30, 1995
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
------------- ------------- ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (191,361) $ (429,272) $ (620,633)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 32,445 113,443 145,888
Changes in assets and liabilities:
Accounts payable and accrued
expenses (14,522) (69,638) (84,160)
Lessee rental deposits (152) 24,588 24,436
Due to management company (16) (29,913) (29,929)
------------ ------------ ------------
(173,606) (390,792) (564,398)
------------ ------------ ------------
Cash flows from investing activities:
Purchases of lease receivables - (2,834,960) (2,834,960)
Principal collections on leases 689,691 3,642,530 4,332,221
Sale of leases (Note 4) 35,267 1,300,791 1,336,058
Distribution of diverted
and other assets, net 123,011 430,098 553,109
Distribution of Datronic assets 19,269 67,370 86,639
Principal collections on
installment contracts receivable 59,586 208,340 267,926
------------ ------------ ------------
926,824 2,814,169 3,740,993
------------ ------------ ------------
Cash flows from financing activities:
Distributions to Limited Partners (a) (156,972) (3,002,546) (3,159,518)
Distributions to General Partner (8,826) (66,805) (75,631)
------------ ------------ ------------
(165,798) (3,069,351) (3,235,149)
------------ ------------ ------------
Net increase (decrease) in cash
and cash equivalents 587,420 (645,974) (58,554)
------------ ------------ ------------
Cash and cash equivalents:
Beginning of year 1,118,691 3,002,502 4,121,193
------------ ------------ ------------
End of second quarter $1,706,111 $ 2,356,528 $ 4,062,639
============ ============ ============
<FN>
(a)Distributions during the period were $3.53 per unit for Liquidating Limited Partners and $19.31
per unit for Continuing Limited Partners.
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
June 30, 1996
-------------
(Unaudited)
NOTE 1 - ORGANIZATION:
- ----------------------
Datronic Equipment Income Fund XVIII, L.P., a Delaware Limited
Partnership (the "Partnership"), was formed on April 12, 1989 for
the purpose of acquiring and leasing both high-and low-technology
equipment. Reference is made to Notes 4, 6, 7 and 8 to the
Partnership's financial statements included in the 1995 Form 10-K
for a discussion of the alleged diversion of Partnership assets in
1991 and 1992 and the subsequent litigation and settlement, change
in general partner, new classes of limited partners established and
amendments to the Partnership Agreement which occurred.
NOTE 2 - BASIS OF FINANCIAL STATEMENTS:
- ---------------------------------------
The accompanying financial statements should be read in conjunction
with the Partnership's financial statements included in the 1995
Form 10-K. The financial information furnished herein is unaudited
but in the opinion of Management includes all adjustments necessary
(all of which are normal recurring adjustments) for a fair
presentation of financial condition and results of operations. See
Note 3 to the Partnership's financial statements included in the
1995 Form 10-K.
NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:
- -------------------------------------------
Distributions to Liquidating Limited Partners were suspended after
payment of the July 1, 1995 distribution. Distributions to the
Continuing Limited Partners were suspended after payment of the
April 1, 1996 distribution.
NOTE 4 - LEASE PORTFOLIO SALES:
- -------------------------------
During the six months ended June 30, 1995, the Partnership,
Datronic Equipment Income Fund XIX, L.P., Datronic Equipment Income
Fund XX, L.P., and Datronic Finance Income Fund I, L.P. each
entered into separate lease purchase agreements with Southern
Pacific Thrift & Loan Association to sell equipment leases at
discount rates ranging from 10.75% to 11.75% which resulted in
aggregate net proceeds of approximately $4.8 million. The
Partnership's proceeds were approximately $1.3 million. Of this
amount, approximately all of the proceeds were allocable to
Continuing Limited Partners and invested in new leases.
NOTE 5 - PCR TRANSACTIONS:
- --------------------------
During the second quarter of 1996 the Partnership received $352,225
of cash in full and complete satisfaction of a certain master
sublease agreement with PCR further described in Note 12 to the
Partnership's financial statements included in the 1995 Form 10-K.
Included in lease income is $304,584 related to the payoff of the
PCR sublease comprised of previously unrecognized lease income of
$277,190 and the recognition of previously unearned lease income of
$27,394.
The Partnership also received during the second quarter of 1996,
$83,507 of cash representing the Partnership's share of remittances
in full and complete satisfaction of certain note obligations
issued by PCR in connection with the sale of PCR stock as further
described in Note 13 to the Partnership's financial statements
included in the 1995 Form 10-K. A gain on the sale of PCR stock of
$19,018 has been included in lease income.
Further, during the second quarter of 1996, LRC received $74,275
representing the Partnership's share of cash remittances from PCR
in full and complete satisfaction of a management and consulting
contract entered into in connection with the sale of PCR stock as
further described in Note 13 to the Partnership's financial
statements included in the 1995 Form 10-K. The amount has been
recorded as a reduction of the General Partner's expense
reimbursement and a due from General Partner in the second quarter.
The due from General Partner will be used to offset future expenses
which would otherwise be payable by the Partnership.
<PAGE>
PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of liquidity and capital
resources covers material changes in the Partnership's financial
condition from December 31, 1995 through June 30, 1996. The
discussion and analysis of results of operations is for the three
and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995.
Financial Condition, Liquidity and Capital Resources
- ----------------------------------------------------
During the six months ended June 30, 1996, Partnership assets were
converted to cash in order to pay Partnership operating expenses,
make distributions to the Continuing Limited Partners and General
Partner through April 1, 1996 and to ensure that sufficient cash
will be available to pursue pending litigation and liquidate the
Partnership in an orderly manner.
Installment contracts receivable decreased approximately $306,000
during the six months ended June 30, 1996 due to scheduled
principal collections.
Net investment in direct financing leases decreased approximately
$2,463,000 during the six months ended June 30, 1996. This
decrease is primarily attributable to principal collections.
Restricted cash of approximately $91,000 has been included in cash
and cash equivalents due to the removal of claims against such cash
(see Part II, Item 1 - Legal Proceedings). This cash was repaid to
the Partnership with interest in June 1996.
Accounts payable and accrued expenses decreased approximately
$92,000 during the six months ended June 30, 1996 primarily
due to payment of legal fees and sales and use taxes.
Lessee rental deposits increased approximately $189,000 during the
six months ended June 30, 1996 primarily due to an accrual for
deposits and overpayments scheduled to be returned to lessees.
In the aggregate, partners' equity decreased approximately $2.3
million during the six months ended June 30, 1996 due to a net loss
of approximately $494,000 and distributions to partners of
approximately $1,766,000.
During the six months ended June 30, 1996, the Partnership's
operating activities resulted in an approximate use of $396,000 of
cash. This was due principally to a net loss of approximately
$494,000 and a decrease in accounts payable of approximately
$91,000 reduced by an increase in rental deposits and overpayments
of approximately $189,000. During the period, cash flows from
investing activities aggregated approximately $2,859,000 relating
to principal collections on leases of approximately $2,463,000,
scheduled repayments on an installment contract receivable of
approximately $306,000 and the availability of restricted cash in
the amount of approximately $91,000. Cash flows used from
financing activities of approximately $1,766,000, consisted of
distributions to Continuing Limited Partners of approximately
$1,757,000 and the General Partner of approximately $8,600.
The Partnership's principal sources of liquidity on both a
long-term and short-term basis are receipts from leases,
installment contracts receivable and cash on hand. Additional
sources of liquidity on a long-term basis are expected to include
proceeds from the sale of diverted and other assets and, possibly,
portions of the Partnership's lease portfolio which may be sold in
bulk. Management believes that its sources of liquidity in the
short and long-term are sufficient to meet its operating cash
obligations. Distributions to the Liquidating Limited Partners
were suspended after the July 1, 1995 distribution and
distributions to the Continuing Limited Partners were suspended
after the April 1, 1996 distribution. Distributions were suspended
to ensure that sufficient cash will be available to pursue
recoveries under pending litigation with the Partnership's former
accountants and other and to liquidate the Partnership in an
orderly manner.
The continued operation and eventual liquidation of the Partnership
involves numerous complex issues which have to be resolved. These
issues relate to the timing and realizability of lease-related
assets, diverted and other assets, Datronic assets, litigation and
the liquidation of the other Datronic Partnerships (see Notes 4, 6
and 9 to the financial statements included in the 1995 Form 10-K).
These issues make it difficult to predict the time and costs
necessary to operate and liquidate the Partnership in an orderly
manner. As a result of these uncertainties, it is not possible to
predict the timing and availability of cash for future
distributions to Limited Partners. However, it is likely that the
amount of future distributions, if any, to the Limited Partners
will ultimately be significantly less than the amount of Partner's
Equity reflected in the June 30, 1996 Balance Sheets (see financial
statements included in Item 1).
Results of Operations
- ---------------------
Lease income decreased approximately $91,000 and $343,000 for the
three and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995. These decreases were primarily due
to the declining lease portfolio and a $200,000 provision recorded
in the second quarter of 1996 to provide for the return of lease
overpayments to lessees previously recorded as lease income
partially offset by approximately $325,000 of income resulting from
transactions with PCR recorded in the second quarter of 1996 as
described in Note 5 of the financial statements included in Item 1.
Interest income decreased approximately $42,000 and $51,000 for the
three and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995 primarily due to declining
installment contract receivable balances partially offset by the
recognition in the second quarter of 1996 of approximately $15,000
of interest previously earned on restricted cash balances.
Amortization of organization and equipment acquisition costs
decreased approximately $146,000 to zero for the six month period
ended June 30, 1996 as compared to the corresponding period in 1995
due to the completion of the amortization of these costs in 1995.
Management fees-New Era represent amounts paid New Era for managing
the Partnership on a day-to-day basis and for acquiring leases for
the Continuing Limited Partners. These fees amounted to
approximately $332,000 and $675,000 for the three and six months
ended June 30, 1996 as compared to $400,000 and $903,000 for the
same periods in 1995. The decreases are attributable to declining
Partnership activity and the cessation of lease acquisitions in
April 1995. See Note 8 to the Partnership's financial statements
included in the 1995 Form 10-K.
The General Partner's expense reimbursement represents the amount
paid to LRC in excess of LRC's 1% share of cash flow available for
distribution. Total amounts paid to LRC are primarily a function
of the amount of time LRC spends on the activities of the
Partnership and the timing of certain LRC expenses. Total amounts
charged by LRC for the three and six months ended June 30, 1996
were approximately $75,000 and $344,000 ($75,000 and $335,000,
respectively, representing the General Partner's expense
reimbursement and zero and $9,000, respectively, representing LRC's
1% of cash flow available for distribution) as compared to
approximately $162,000 and $404,000 ($138,000 and $328,000,
respectively, representing the General Partner's expense
reimbursement and $24,000 and $76,000, respectively, representing
LRC's 1% cash flow available for distribution) for the
corresponding periods ended June 30, 1995. See Note 7 to the
Partnership's financial statements included in the 1995 form 10-K.
The decreases are primarily attributable to a credit of $74,275
recorded in the second quarter of 1996 representing the
Partnership's share of certain remittances received by LRC from PCR
as described in Note 5 to the financial statements in Item 1.
Professional fees decreased approximately $128,000 and $135,000 for
the three and six month periods ended June 30, 1996 as compared to
the corresponding period in 1995 primarily due to decreased legal
fees relating to collections and Partnership claims against former
accountants and others and to consulting services.
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
Reference is made to Item 3 - Legal Proceedings in the
Partnership's December 31, 1995 Form 10-K, for a discussion of
material legal proceedings involving the Partnership.
Reference is made to Part II, Item 1 - Legal Proceeding in the
Partnership's March 31, 1996 Form 10-Q for a discussion of legal
proceedings involving claims against restricted cash and diverted
and other assets.
ITEM 2. CHANGES IN SECURITIES
- ------------------------------
None.
ITEM 3.
- -------
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------------------------------------------------------------
None.
ITEM 5.
- -------
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
(a) Exhibits
- -------------
See Exhibit Index.
(b) Reports on Form 8-K
- ------------------------
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized, on the 12th day of
August 1996.
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
Registrant
By: DONALD D. TORISKY
Donald D. Torisky
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XVIII, L.P.
By: DOUGLAS E. VAN SCOY
Douglas E. Van Scoy
Chief Financial Officer and Director
New Era Funding Corp.
Managing Agent of
Datronic Equipment Income Fund XVIII, L.P.
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 Financial Data Schedule, which is
submitted electronically to the
Securities and Exchange Commission
for information only and not filed.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and the Statements of Revenue and Expenses and is qualifed in its entirety
by reference to such Report on Form 10-Q.
</LEGEND>
<CIK> 0000850671
<NAME> DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 4,107,137
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,917,768
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 10,127,773
<TOTAL-LIABILITY-AND-EQUITY> 10,917,768
<SALES> 0
<TOTAL-REVENUES> 767,773
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 31,421
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (493,694)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
