<PAGE> 1
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
September 30, 1997 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> 2
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
PART I - FINANCIAL INFORMATION
Item 1.
- -------
Index to Financial Statements
Balance Sheets
September 30, 1997 (unaudited) 3
December 31, 1996 4
Statements of Revenue and Expenses (unaudited)
For the three months ended September 30, 1997 5
For the three months ended September 30, 1996 6
For the nine months ended September 30, 1997 7
For the nine months ended September 30, 1996 8
Statements of Changes in Partners' Equity
For the nine months ended September 30, 1997
(unaudited) 9
Statements of Cash Flows (unaudited)
For the nine months ended September 30, 1997 10
For the nine months ended September 30, 1996 11
Notes to Financial Statements (unaudited) 12 - 13
Item 2.
- -------
Management's Discussion and Analysis of
Financial Condition and Results of Operations 14 - 17
PART II - OTHER INFORMATION
Items 1-6. 18
2
<PAGE> 3
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
BALANCE SHEETS
September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- -----------
ASSETS
- ------
<S> <C> <C> <C>
Cash and cash equivalents $2,289,200 $5,412,487 $ 7,701,687
Net investment in direct
financing leases - 1,402,960 1,402,960
Diverted and other assets, net 312,149 1,091,397 1,403,546
Datronic assets, net - - -
----------- ---------- -----------
$2,601,349 $7,906,844 $10,508,193
=========== ========== ===========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 14,883 $ 68,257 $ 83,140
Lessee rental deposits 28,121 127,341 155,462
----------- ---------- -----------
Total liabilities 43,004 195,598 238,602
Total partners' equity 2,558,345 7,711,246 10,269,591
----------- ---------- -----------
$2,601,349 $7,906,844 $10,508,193
=========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
BALANCE SHEETS
December 31, 1996
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- -----------
ASSETS
- ------
<S> <C> <C> <C>
Cash and cash equivalents $2,357,430 $3,986,042 $6,343,472
Due from management company 12,674 47,002 59,676
Net investment in direct
financing leases 4,491 3,011,385 3,015,876
Diverted and other assets, net 312,149 1,091,397 1,403,546
Datronic assets, net - - -
----------- ---------- -----------
$2,686,744 $8,135,826 $10,822,570
=========== ========== ===========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 57,989 $ 233,827 $ 291,816
Lessee rental deposits 45,101 200,059 245,160
----------- ---------- -----------
Total liabilities 103,090 433,886 536,976
Total partners' equity 2,583,654 7,701,940 10,285,594
----------- ---------- -----------
$2,686,744 $8,135,826 $10,822,570
=========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 1,009 $ 65,770 $ 66,779
Interest income 20,840 76,384 97,224
----------- ---------- ---------
21,849 142,154 164,003
----------- ---------- ---------
Expenses:
General Partner's expense
reimbursement 58,564 230,977 289,541
Professional fees 30,927 108,997 139,924
Other operating expenses 4,075 14,390 18,465
Credit for lease losses (60,925) (213,016) (273,941)
----------- ---------- ---------
32,641 141,348 173,989
----------- ---------- ---------
Net earnings (loss) $ (10,792) $ 806 $ (9,986)
=========== ========== =========
Net earnings (loss) -
General Partner $ (108) $ 8 $ (100)
=========== ========== =========
Net earnings (loss) -
Limited Partners $ (10,684) $ 798 $ (9,886)
=========== ========== =========
Net earnings (loss) per limited
partnership unit $ (0.24) $ 0.01
=========== ==========
Weighted average number
of limited partnership units
outstanding 44,468 155,509
=========== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income (loss) $ (31,671) $ 20,164 $ (11,507)
Interest income 14,542 83,523 98,065
----------- ---------- ----------
(17,129) 103,687 86,558
----------- ---------- ----------
Expenses:
General Partner's expense
reimbursement 62,120 227,332 289,452
Professional fees 25,542 90,978 116,520
Other operating expenses 5,093 18,197 23,290
----------- ---------- ----------
92,755 336,507 429,262
----------- ---------- ----------
Net loss $ (109,884) $(232,820) $ (342,704)
=========== ========== ==========
Net loss - General Partner $ (1,099) $ (2,328) $ (3,427)
=========== ========== ==========
Net loss - Limited Partners $ (108,785) $(230,492) $ (339,277)
=========== ========== ==========
Net loss per limited
partnership unit $ (2.45) $ (1.48)
=========== ==========
Weighted average number
of limited partnership units
outstanding 44,468 155,509
=========== ==========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 7,492 $ 258,328 $ 265,820
Interest income 53,094 209,639 262,733
----------- ---------- ---------
60,586 467,967 528,553
----------- ---------- ---------
Expenses:
General Partner's expense
reimbursement 241,928 888,810 1,130,738
Professional fees 66,759 242,598 309,357
Other operating expenses 8,711 31,679 40,390
Credit for lease losses (231,503) (704,426) (935,929)
----------- ---------- ---------
85,895 458,661 544,556
----------- ---------- ---------
Net earnings (loss) $ (25,309) $ 9,306 $ (16,003)
=========== ========== =========
Net earnings (loss) -
General Partner $ (253) $ 93 $ (160)
=========== ========== =========
Net earnings (loss) -
Limited Partners $ (25,056) $ 9,213 $ (15,843)
=========== ========== =========
Net earnings (loss) limited
partnership unit $ (.56) $ .06
=========== ==========
Weighted average number
of limited partnership units
outstanding 44,468 155,509
=========== ==========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the nine months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 24,469 $ 547,765 $ 572,234
Interest income 44,320 237,777 282,097
----------- ---------- ----------
68,789 785,542 854,331
----------- ---------- ----------
Expenses:
Management fees-New Era 142,205 532,623 674,828
General Partner's expense
reimbursement 136,695 488,077 624,772
Professional fees 73,100 263,318 336,418
Other operating expenses 11,729 42,982 54,711
----------- ---------- ----------
363,729 1,327,000 1,690,729
----------- ---------- ----------
Net loss $ (294,940) $ (541,458) $ (836,398)
=========== ========== ==========
Net loss - General Partner $ (2,949) $ (5,415) $ (8,364)
=========== ========== ==========
Net loss - Limited Partners $ (291,991) $ (536,043) $ (828,034)
=========== ========== ==========
Net loss per limited
partnership unit $ (6.57) $ (3.45)
=========== ==========
Weighted average number
of limited partnership units
outstanding 44,468 155,509
=========== ==========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
STATEMENT OF CHANGES IN PARTNERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1996 $ (356,167)* $2,640,683 $8,001,078 $10,285,594
Net earnings (loss) (160) (25,056) 9,213 (16,003)
Allocation of General
Partner's equity 356,327 (57,282) (299,045) -
----------- ----------- ---------- -----------
Balance, September 30, 1997 $ - $2,558,345 $7,711,246 $10,269,591
=========== =========== ========== ===========
</TABLE>
* Balance as previously reported was $0 due to allocation of $57,029 and
$299,138 to Liquidating and Continuing Limited Partners' Equity,
respectively.
See accompanying notes to financial statements.
9
<PAGE> 10
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- -----------
<S> <C> <C> <C>
Cash flows used for operating activities:
Net earnings (loss) $ (25,309) $ 9,306 $ (16,003)
Adjustments to reconcile net earnings
(loss) to net cash used in
operating activities:
Credit for lease losses (231,503) (704,426) (935,929)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (43,106) (165,570) (208,676)
Lessee rental deposits (16,980) (72,718) (89,698)
Due from management company 12,674 47,002 59,676
----------- ---------- -----------
(304,224) (886,406) (1,190,630)
----------- ---------- -----------
Cash flows from investing activities:
Principal collections on leases 235,994 2,312,851 2,548,845
----------- ---------- -----------
Net increase (decrease) in cash and
cash equivalents (68,230) 1,426,445 1,358,215
Cash and cash equivalents:
Beginning of year 2,357,430 3,986,042 6,343,472
----------- ---------- -----------
End of third quarter $2,289,200 $5,412,487 $7,701,687
=========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
Cash flows used for operating activities:
Net loss $ (294,940) $ (541,458) $ (836,398)
Adjustments to reconcile net loss to
net cash used in operating activities:
Changes in assets and liabilities:
Accounts payable and accrued
expenses (19,106) (72,069) (91,175)
Lessee rental deposits 73,371 255,232 328,603
Due to management company 207 770 977
----------- ----------- -----------
(240,468) (357,525) (597,993)
----------- ----------- -----------
Cash flows from investing activities:
Principal collections on leases 325,499 3,006,537 3,332,036
Principal collections on
installment contract receivable 101,975 356,546 458,521
Release of restricted cash 20,152 70,460 90,612
----------- ----------- -----------
447,626 3,433,543 3,881,169
----------- ----------- -----------
Cash flows used for financing activities:
Distributions to Limited
Partners - (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 207,158 1,310,196 1,517,354
Cash and cash equivalents:
Beginning of year 1,977,211 1,432,420 3,409,631
----------- ----------- -----------
End of third quarter $2,184,369 $2,742,616 $4,926,985
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
(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 3,
4, 5, and 6 to the Partnership's financial statements included in the 1996 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 that 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 1996 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.
In December 1996, the Court approved a Management Termination Agreement between
New Era Funding Corp. and Lease Resolution Corporation ("LRC"). Pursuant to
that agreement, LRC assumed day-to-day management responsibility for the
Partnership and for the related expenses incurred on its behalf retroactive to
July 1, 1996. Accordingly, management fees totaling $331,549 for the period
July 1-September 30, 1996 originally reported as Management fees-New Era in
the Partnership's Statements of Revenue and Expenses for the three and nine
months ended September 30, 1996 have been reclassified as General Partner's
expense reimbursement. This reclassification has no effect on the
Partnership's net loss for these periods and is consistent with the manner in
which these expenses were reported for the full year in the Partnership's 1996
financial statements included in 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.
12
<PAGE> 13
NOTE 4 - SUBSEQUENT EVENT SALE OF CRCA ASSETS:
On September 13, 1996, Computer Rental Corp. of America (CRCA) sold all of its
assets (excluding cash) to Personal Computer Rental Corporation (PCRC) for
approximately $6,200,000. Reference is made to Note 12 to the Partnership's
financial statements included in the 1996 Form 10-K for a complete discussion
of this transaction. In connection with the sale, PCRC issued two secured
notes in the amount of $1,500,000 and $4,200,000 million, respectively. The
unpaid principal balance of the notes were due to be paid November 1, 1997 in
the amount of $600,000 and $4,200,000, respectively. LRC, on behalf of Funds
XVIII and XX, has granted PCRC a 30 day extension of the due date to December
1, 1997 to allow PCRC additional time to raise the necessary funds to pay the
balances due on the notes.
The Partnership has been recording recoveries on its master lease with CRCA as
cash has been received by it. Proceeds from these notes are allocated 65% to
the Partnership and 35% to Fund XX in accordance with their respective
interests in the master lease agreements with CRCA. During 1997 a total of
$1,182,130 has been received by CRCA from PCRC of which $768,502 has been
remitted to the Partnership and $413,808 to Fund XX.
13
<PAGE> 14
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,
1996 through September 30, 1997. The discussion and analysis of results of
operations is for the three and nine months ended September 30, 1997 as
compared to the corresponding periods in 1996.
Financial Condition, Liquidity and Capital Resources
During the nine months ended September 30, 1997, Partnership assets continued
to be converted to cash in order to pay Partnership operating expenses,
liquidate Partnership liabilities and increase cash balances to provide cash
reserves for the ultimate liquidation of the Partnership.
Net investment in direct financing leases decreased $1,613,000 during the nine
months ended September 30, 1997. This decrease is primarily attributable to
principal collections of $2,549,000, partially offset by a credit for lease
losses of $936,000.
Accounts payable and accrued expenses decreased $209,000 during the nine months
ended September 30, 1997 primarily due to payment of accrued legal fees and
sales and use taxes.
Lessee rental deposits decreased $90,000 from the return of lease deposits at
the expiration of the respective leases.
Partners' equity decreased during the nine months ended September 30, 1997 due
to a net loss of $16,000.
During the nine months ended September 30, 1997, the Partnership's operating
activities resulted in a use of $1,191,000 of cash. This was due principally to
a net loss of $16,000, decreases in accounts payable and lessee rental deposits
of $298,000, and a non-cash credit provision for lease losses of $936,000,
partially offset by a decrease in due from management company of $60,000.
During the period, cash flows from investing activities aggregated $2,549,000
relating to principal collections on leases.
The Partnership's sources of liquidity on both a long-term and short-term basis
are expected to come principally from cash-on-hand and cash receipts from
leases owned by the Partnership. In addition, the Partnership's sources of
liquidity on a long-term basis are expected to include proceeds from the sale
of Diverted and other assets and 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
14
<PAGE> 15
obligations, provide for the ongoing pursuit of litigation and an orderly
liquidation of the Partnership. 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.
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 3, 5 and 9 to the Partnership's financial statements
included in the 1996 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 unlikely that any additional
distributions will be made until all remaining assets are liquidated and the
pending litigation is resolved. The amount of future distributions, if any, to
the Limited Partners is likely to be significantly less than the amount of
partners' equity reflected in the September 30, 1997 Balance Sheets (see the
financial statements included in Item 1).
Results of Operations
Lease income increased by $78,000 for the three months ended September 30, 1997
as compared to the corresponding three months of 1996. This was due to a
$200,000 reduction of lease income in the third quarter 1996 which provided for
the return of lease overpayments previously recorded as income, partially
offset by a decline in third quarter 1997 lease income because of the decreased
size of the lease portfolio.
Lease income for the nine months ended September 30, 1997 decreased by $306,000
as compared to the corresponding nine months of 1996. This was due to (i) a
second quarter 1996 reduction of $200,000 for lease overpayments, partially
offset by $325,000 of non-recurring income from a transaction with PCR (see
Note 12 to the Partnership's financial statements included in the 1996 Form
10-K), (ii) the $200,000 third quarter 1996 reduction noted above, and (iii) a
$381,000 decline in lease income for the nine months ended September 30, 1997
because of the decreased size of lease portfolio.
Interest income decreased $19,000 for the nine month period ended September 30,
1997 as compared to the corresponding period in 1996, primarily due to an early
payoff of an installment contract receivable in December 1996 and the
recognition in the second quarter 1996 of interest previously earned on
restricted cash balances, partially offset by additional interest earned in the
1997 period as a result of increased cash balances.
Management fees-New Era represents payments to New Era Funding for managing the
day-to-day operations of the Partnership pursuant to a Management Agreement
that was terminated effective June 30, 1996. Accordingly, no management fees
were paid to New Era for any periods after that date. Management fees of
$675,000 for the nine months ended September 30, 1996 are all attributable to
the first six months
15
<PAGE> 16
of the year. Effective July 1, 1996, the General Partner, Lease Resolution
Corporation ("LRC") assumed responsibility for the day-to-day management of
the Partnership and the related expenses are included in General Partner's
expense reimbursement (see Note 8 to the financial statements included in the
1996 Form 10-K).
The General Partner's expense reimbursement includes (i) payments to LRC for
expenses it incurred as general partner beyond those recovered by its partner
distributions, and (ii) effective July 1, 1996, reimbursement of additional
expenses incurred by LRC in the day-to-day management of the Partnership. The
following table summarizes all payments to LRC for the three and nine months
ended September 30, 1996 and 1997.
<TABLE>
<CAPTION>
General
Expense Partner
Reimbursement Distributions Total
----------------------------------------
<S> <C>
Three months ended
9/30/97 $ 290,000 $ - $ 290,000
9/30/96 290,000 - 290,000
----------------------------------------
Increase (decrease) $ - $ - $ -
========================================
Nine months ended
9/30/97 $1,131,000 $ - $1,131,000
9/30/96 625,000 9,000 634,000
----------------------------------------
Increase (decrease) $ 506,000 $(9,000) $ 497,000
========================================
</TABLE>
Total payments to LRC for the three months ended September 30, 1996 and 1997
remained at the same net levels because of the offsetting effects of several
items including, staff reductions and other cost savings associated with the
management of the Partnership. These 1997 savings were partially offset by a
$120,000 premium for insurance coverage that extends through the ultimate
liquidation of the Partnership. In addition, 1996 expenses were lower than
they would have otherwise been because of a $188,000, one-time reimbursement
from CRCA (see Note 12 to the Partnership's financial statements included in
the 1996 Form 10-K).
The nine month increase of $497,000 reflects the fact that LRC managed the
day-to-day operations of the Partnership for all three quarters through
September 30, 1997 versus only one quarter in 1996, partially offset by staff
reductions and other cost savings. The increase also includes the $120,000
insurance premium noted above and a $66,000, one-time charge for relocating the
former New Era staff to reduced office space. In addition, 1996 expenses for
the nine months were lower than they would have otherwise been because of two
non-recurring items: (i) the $188,000 CRCA reimbursement noted above and (ii) a
$124,000 second quarter receipt from PCR for the early payoff of management and
consulting fees (see Note 12 to the Partnership's financial statements
included in the 1996 Form 10-K).
16
<PAGE> 17
Professional fees increased $23,000 for the three months ended September 30,
1997 and decreased $27,000 for the nine months then ended as compared to the
corresponding periods in 1996. The increase is primarily due to increased
legal fees relating to Partnership claims against former accountants and
others. The decrease is related to the decreases in other legal fees,
collection fees, and audit fees.
The $274,000 and $936,000 credit for lease losses for the three and nine months
ended September 30, 1997, respectively, reflects recoveries on the Master Lease
with CRCA (see Note 12 to the Partnership's financial statements included in
the 1996 Form 10-K), as well as the impact from Management's ongoing assessment
of potential losses inherent in the lease portfolio.
17
<PAGE> 18
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1996 Form 10-K, for a discussion of material legal proceedings involving
the Partnership.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
See Exhibit Index.
(b) Reports on Form 8-K
None.
18
<PAGE> 19
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 13th day of November 1997.
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
Registrant
By: /s/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: /s/ROBERT P. SCHAEN
-------------------------------------
Robert P. Schaen
Vice Chairman and Chief Financial Officer,
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XVIII, L.P.
19
<PAGE> 20
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.
20
<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 qualified 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 7,701,687
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,508,193
<CURRENT-LIABILITIES> 0
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0
0
<COMMON> 0
<OTHER-SE> 10,269,591
<TOTAL-LIABILITY-AND-EQUITY> 10,508,193
<SALES> 0
<TOTAL-REVENUES> 528,553
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 40,390
<LOSS-PROVISION> (935,929)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (16,003)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
