UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------
FORM 10-QSB
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
- ----- OF 1934
For the quarterly period ended September 30, 1999
OR
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 0-18278
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PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
- --------------------------------------------------------------------------------
Registrant
California 68-0191380
- --------------------------------- ----------------------------------
State of Jurisdiction I.R.S. Employer Identification No.
2401 Kerner Boulevard, San Rafael, California 94901-5527
- --------------------------------------------------------------------------------
Address of Principal Executive Offices Zip Code
Registrant's telephone number, including area code: (415) 485-4500
--------------
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
preceding requirements for the past 90 days.
Yes X No
----- -----
6,192,840 Units of Limited Partnership Interest were outstanding as of September
30, 1999.
Transitional small business disclosure format:
Yes No X
----- -----
Page 1 of 13
<PAGE>
Part I. Financial Information
-----------------------------
Item 1. Financial Statements
PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except for Unit Amounts)
(Unaudited)
September 30, December 31,
1999 1998
---- ----
ASSETS
Cash and cash equivalents $ 7,377 $ 6,877
Accounts receivable (net of allowance for losses
on accounts receivable of $199 and $308 at
September 30, 1999 and December 31, 1998,
respectively) 87 106
Notes receivable (net of allowance for losses
on notes receivable of $805 and $2,375 at
September 30, 1999 and December 31, 1998,
respectively) 2,510 4,018
Equipment on operating leases and held for lease
(net of accumulated depreciation of $3,033
and $5,378 at September 30, 1999 and December
31, 1998, respectively) 1 36
Net investment in financing leases (net of
allowance for early terminations of $589 and
$661 at September 30, 1999 and December 31,
1998, respectively) 1,044 3,352
Capitalized acquisition fees (net of accumulated
amortization of $10,772 and $10,615 at
September 30, 1999 and December 31, 1998,
respectively) 159 316
Other assets 211 777
------- -------
Total Assets $11,389 $15,482
======= =======
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable and accrued expenses $ 993 $ 1,073
------- -------
Total Liabilities 993 1,073
------- -------
Partners' Capital
General Partner -- --
Limited Partners, 6,500,000 units authorized,
6,492,727 units issued, 6,192,840 units
outstanding at September 30, 1999 and
December 31, 1998 10,226 14,027
Accumulated other comprehensive income 170 382
------- -------
Total Partners' Capital 10,396 14,409
------- -------
Total Liabilities and Partners' Capital $11,389 $15,482
======= =======
The accompanying notes are an integral part of these statements.
2
<PAGE>
PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(Amounts in Thousands Except for Per Unit Amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
INCOME
Rental income $ 149 $ 814 $ 479 $ 1,992
Earned income, financing leases 65 223 285 867
Gain on sale of securities 163 -- 397 37
Equity in earnings from joint
ventures, net 67 69 140 273
Interest income, notes receivable 226 235 526 697
Other income 95 105 275 373
------- ------- ------- -------
Total Income 765 1,446 2,102 4,239
------- ------- ------- -------
EXPENSES
Depreciation 19 66 145 301
Amortization of acquisition fees 40 98 157 300
Lease related operating expenses -- 16 16 71
Management fees to General Partner 54 121 188 364
Reimbursed administrative costs to
General Partner 27 49 142 213
Provision for losses on receivables -- 27 37 116
Legal expense 82 82 218 267
General and administrative expenses 37 33 113 142
------- ------- ------- -------
Total Expenses 259 492 1,016 1,774
------- ------- ------- -------
NET INCOME 506 954 1,086 2,465
Other comprehensive income:
Unrealized gains (losses) on securities:
Unrealized holding gains (losses)
arising during period 332 (60) 185 66
Less: reclassification adjustment
for gains included in net
income (162) -- (397) (37)
------- ------- ------- -------
Other comprehensive income 170 (60) (212) 29
------- ------- ------- -------
COMPREHENSIVE INCOME $ 676 $ 894 $ 874 $ 2,494
======= ======= ======= =======
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ .07 $ .12 $ .14 $ .30
======= ======= ======= =======
DISTRIBUTIONS PER LIMITED
PARTNERSHIP UNIT $ .25 $ .60 $ .75 $ 1.80
======= ======= ======= =======
ALLOCATION OF NET INCOME:
General Partner $ 81 $ 196 $ 244 $ 588
Limited Partners 425 758 842 1,877
------- ------- ------- -------
$ 506 $ 954 $ 1,086 $ 2,465
======= ======= ======= =======
The accompanying notes are an integral part of these statements.
3
<PAGE>
PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
(Unaudited)
Nine Months Ended
September 30,
1999 1998
---- ----
Operating Activities:
- --------------------
Net income $ 1,086 $ 2,465
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 145 301
Amortization of acquisition fees 157 300
Equity in earnings from joint ventures, net (140) (273)
Gain on sale of equipment (97) (177)
Gain on sale of securities (397) (37)
Provision for early termination, financing leases -- 31
Provision for losses on notes receivable 37 84
Decrease in accounts receivable 19 464
Increase (decrease) in accounts payable
and accrued expenses (80) 76
Decrease in deferred income tax asset -- 7
Decrease in other assets 27 5
-------- --------
Net cash provided by operating activities 757 3,246
-------- --------
Investing Activities:
- --------------------
Principal payments, financing leases 2,197 4,792
Principal payments, notes receivable 1,471 2,086
Proceeds from sale of equipment 98 257
Proceeds from sale of securities 397 37
Distributions from joint ventures 468 607
Investment in notes receivable -- (118)
Payment of acquisition fees -- (5)
-------- --------
Net cash provided by investing activities 4,631 7,656
-------- --------
Financing Activities:
- --------------------
Redemptions of capital -- (60)
Distributions to partners (4,888) (11,769)
-------- --------
Net cash used in financing activities (4,888) (11,829)
-------- --------
Increase (decrease) in cash and cash equivalents 500 (927)
Cash and cash equivalents, beginning of period 6,877 9,218
-------- --------
Cash and cash equivalents, end of period $ 7,377 $ 8,291
======== ========
The accompanying notes are an integral part of these statements.
4
<PAGE>
PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. General.
-------
The accompanying unaudited condensed consolidated financial statements
have been prepared by the Partnership in accordance with generally accepted
accounting principles, pursuant to the rules and regulations of the Securities
and Exchange Commission. In the opinion of Management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Although management believes that the
disclosures are adequate to make the information presented not misleading, it is
suggested that these condensed financial statements be read in conjunction with
the financial statements and the notes included in the Partnership's Financial
Statement, as filed with the SEC in the latest annual report on Form 10-K.
The Partnership Agreement stipulates the methods by which income will
be allocated to the General Partner and the limited partners. Such allocations
will be made using income or loss calculated under Generally Accepted Accounting
Principles for book purposes, which varies from income or loss calculated for
tax purposes.
The calculation of items of income and loss for book and tax purposes
may result in book basis capital accounts that vary from the tax basis capital
accounts. The requirement to restore any deficit capital balances by the General
Partner will be determined based on the tax basis capital accounts. At
liquidation of the Partnership, the General Partner's remaining book basis
capital accounts will be reduced to zero through the allocation of income or
loss.
Note 2. Reclassification.
----------------
Reclassification - Certain 1998 amounts have been reclassified to
conform to the 1999 presentation.
Note 3. Income Taxes.
------------
Federal and state income tax regulations provide that taxes on the
income or loss of the Partnership are reportable by the partners in their
individual income tax returns. Accordingly, no provision for such taxes has been
made in the accompanying financial statements.
Note 4. Notes Receivable.
----------------
Impaired Notes Receivable. At September 30, 1999, the Partnership has
investments in notes receivable, before allowance for losses, of $3,315,000.
This amount includes impaired notes receivable, net of specific write-downs, of
$659,000. The Partnership has an allowance for losses of $805,000 as of
September 30, 1999. The average recorded investment in impaired loans during the
nine months ended September 30, 1999 and 1998 was approximately $394,000 and
$247,000, respectively.
5
<PAGE>
The activity in the allowance for losses on notes receivable during the
nine months ended September 30, is as follows:
1999 1998
---- ----
(Amounts in Thousands)
Beginning balance $ 2,375 $ 2,268
Provision for losses 37 84
Write downs (1,607) --
------- -------
Ending balance $ 805 $ 2,352
======= =======
Note 5. Net Income (Loss) and Distributions Per Limited Partnership Unit.
----------------------------------------------------------------
Net income and distributions per limited partnership unit were based on
the limited partners' share of net income and distributions, and the weighted
average number of units outstanding of 6,192,840 and 6,196,526 for the nine
months ended September 30, 1999 and 1998, respectively. For purposes of
allocating net income (loss) and distributions to each individual limited
partner, the Partnership allocates net income (loss) and distributions based
upon each respective limited partner's net capital contributions.
Note 6. Investment in Joint Ventures.
----------------------------
Equipment Joint Venture
- -----------------------
The aggregate financial information of the equipment joint venture is
presented as follows:
September 30, December 31,
1999 1998
---- ----
(Amounts in Thousands)
Assets $ 61 $184
Liabilities 62 117
Partners' Capital (1) 67
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
(Amounts in Thousands)
Revenue $ 71 $133 $404 $689
Expenses 4 8 53 55
Net Income 67 125 351 634
6
<PAGE>
Financing Joint Venture
- -----------------------
The aggregate financial information of the financing joint venture is
presented as follows:
September 30, December 31,
1999 1998
---- ----
(Amounts in Thousands)
Assets $ -- $550
Liabilities -- 151
Partners' Capital -- 399
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
(Amounts in Thousands)
Revenue $ 7 $ 20 $ 2 $ 68
Expenses -- 5 155 13
Net Income (Loss) 7 15 (153) 55
Foreclosed Cable Systems Joint Ventures
- ---------------------------------------
The aggregate combined financial information of the foreclosed cable
systems joint ventures is presented as follows:
September 30, December 31,
1999 1998
---- ----
(Amounts in Thousands)
Assets $ -- $626
Liabilities -- 97
Partners' Capital -- 529
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
(Amounts in Thousands)
Revenue $ 122 $ 96 $ 245 $ 219
Expenses 27 77 187 275
Net Income (Loss) 95 19 58 (56)
7
<PAGE>
Note 7. Legal Proceedings.
-----------------
On October 28, 1997, a Class Action Complaint was filed against Phoenix
Leasing Incorporated, Phoenix Leasing Associates, II and III LP., Phoenix
Securities Inc. and Phoenix American Incorporated (the "Companies") in
California Superior Court for the County of Sacramento by eleven individuals on
behalf of investors in Phoenix Leasing Cash Distribution Funds I through V (the
"Partnerships"). The Companies were served with the Complaint on December 9,
1997. The Complaint sought declaratory and other relief including accounting,
receivership, imposition of a constructive trust and judicial dissolution and
winding up of the Partnerships, and damages based on fraud, breach of fiduciary
duty and breach of contract by the Companies as general partners of the
Partnerships.
Plaintiffs severed one cause of action from the Complaint, a claim
related to the marketing and sale of CDF V, and transferred it to Marin County
Superior Court (the "Berger Action"). Plaintiffs then dismissed the remaining
claims in Sacramento Superior Court and refiled them in a separate lawsuit
making similar allegations (the "Ash Action"). That complaint was subsequently
transferred to Marin County as well.
Plaintiffs have amended the Berger Action twice. Defendants recently
answered the complaint. Discovery has recently commenced. The Companies intend
to vigorously defend the Complaint.
Defendants have filed a demurrer to the Ash Complaint, which plaintiffs
amended three times. Discovery has not commenced. The Companies intend to
vigorously defend the Complaint.
During the nine months ended September 30, 1999 and September 30, 1998,
the Partnership recorded legal expenses of approximately $101,000 and $108,000,
respectively, in connection with the above litigation as indemnification to the
General Partner.
8
<PAGE>
PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Item 2. Management's Discussion and Analysis of Financial Condition and Results
-----------------------------------------------------------------------
of Operations.
-------------
Results of Operations
Phoenix Leasing Cash Distribution Fund IV, a California limited
partnership (the "Partnership"), reported net income of $506,000 and $1,086,000
during the three and nine months ended September 30, 1999, respectively, as
compared to net income of $954,000 and $2,465,000 during the three and nine
months ended September 30, 1998, respectively. The decrease in net income for
the three and nine months ended September 30, 1999, compared to the same periods
in 1998, is primarily a result of a decrease in earned income from financing
leases and rental income.
The decrease in total revenues of $681,000 and $2,137,000 for the three
and nine months ended September 30, 1999, as compared to the same periods in
1998, is primarily the result of declines in earned income from financing leases
and rental income. The decrease in earned income from financing leases of
$158,000 and $582,000 for the three and nine months ended September 30, 1999,
respectively, compared to the same periods in the prior year, is due to a
decrease in the net investment in financing leases. The net investment in
financing leases was $1 million at September 30, 1999, as compared to $4.5
million at September 30, 1998. The investment in financing leases, as well as
earned income from financing leases, will decrease over the lease term as the
Partnership amortizes income over the lease term using the interest method of
accounting.
Rental income decreased by $665,000 and $1,513,000 for the three and
nine months ended September 30, 1999, respectively, as compared to the same
period in 1998. The decrease in rental income for the three and nine months
ended September 30, 1999 is reflective of a decrease in the size of the
equipment portfolio. The Partnership owned equipment with an aggregate original
cost of $12 million at September 30, 1999, as compared to $24.9 million at
September 30, 1998.
An additional factor contributing to the decline in total revenues is
the decrease in interest income from notes receivable. Interest income from
notes receivable decreased by $9,000 and $171,000 for the three and nine months
ended September 30, 1999, respectively, compared to the same period in 1998. The
decrease in interest income from notes receivable is attributable to the decline
in net investment in notes receivable. At September 30, 1999, the net investment
in notes receivable was $2,510,000 compared to $4,456,000 at September 30, 1998.
The decline in total revenues resulting from a decrease in earned
income from financing leases, rental income and interest income from notes
receivable for the three and nine months ended September 30, 1999, compared to
the same periods in 1998 was in part offset by an increase in gain on sale of
securities of $163,000 and $360,000 for the three and nine months ended
September 30, 1999, respectively, compared to the same periods in 1998. The
securities sold consisted of common stock received through the exercise of stock
warrants granted to the partnership as part of financing agreements with
emerging growth companies that are publicly traded. The partnership received
proceeds of $397,000 and $37,000 from the sale of these securities during the
nine months ended September 30, 1999 and 1998, respectively.
9
<PAGE>
Total expenses decreased by $233,000 and $758,000 during the three and
nine months ended September 30, 1999, respectively, as compared to the same
period in 1998. The decrease in total expenses for the three and nine months
ended September 30, 1999, compared to the same periods in the previous year, is
a result of a decrease in nearly all of the items comprising total expenses.
These decreases are the result of the continued decrease in the size of the
equipment portfolio.
Liquidity and Capital Resources
The Partnership's primary source of liquidity is derived from its
contractual obligations with a diversified group of lessees for fixed lease
terms at fixed rental amounts, and from payments of principal and interest on
its outstanding notes receivable. As the initial lease terms expire, the
Partnership will re-lease or sell the equipment. The future liquidity of the
Partnership will depend upon the General Partner's success in collecting the
contractual amounts owed, as well as re-leasing and selling the Partnership's
equipment as it comes off lease.
The Partnership reported net cash generated by equipment leasing and
financing activities of $4,425,000 and $10,124,000 during the nine months ended
September 30, 1999 and 1998, respectively. The net decrease in cash generated is
due to a decrease in payments on financing leases and notes receivable, as well
as rental income.
The Partnership received cash distributions from joint ventures of
$468,000 during the nine months ended September 30, 1999, as compared to cash
distributions of $607,000 during the same period in 1998. The decrease in
distributions from joint ventures is attributable to a decline in the amount of
cash available for distribution from one equipment joint venture as a result of
a decrease in proceeds from sale of equipment.
Proceeds from the sale of equipment decreased by $159,000 as a result
of a decline in sales activity of the Partnership's equipment portfolio. The
Partnership sold equipment with an aggregate original cost of $10 million for
the nine months ended September 30, 1999, compared to $20 million for the same
period in 1998.
As of September 30, 1999, the Partnership owned equipment held for
lease with an original purchase price of $4 million and a net book value of
$16,000, compared to $8 million and $40,000, respectively, at September 30,
1998. The General Partner is actively engaged, on behalf of the Partnership, in
remarketing and selling the Partnership's equipment as it becomes available.
Until new lessees or buyers of equipment can be found, the equipment will
continue to generate depreciation expense without any corresponding rental
income. The effect of this will be a reduction of the Partnership earnings
during this remarketing period.
The total cash distributed to partners for the nine months ended
September 30, 1999 was $4,888,000, as compared to $11,769,000 for the same
period in 1998. In accordance with the partnership agreement, the limited
partners are entitled to 95% of the cash available for distribution and the
General Partner is entitled to 5%. As a result, the limited partners received
$4,644,000 and $11,181,000 in distributions during the nine months ended
September 30, 1999 and 1998, respectively. The cumulative distributions to the
Limited Partners are $121,945,000 and $114,361,000 as of September 30, 1999 and
1998, respectively. The General Partner received $244,000 and $588,000 for its
share of the cash available for distribution during the nine months ended
September 30, 1999 and 1998, respectively. The Partnership plans to make
10
<PAGE>
distributions in 1999 at a decreased rate of 5%, compared to the December 1998
distribution rate of 12%.
As provided for by the partnership agreement, the General Partner has
determined to exercise its discretion that no further redemptions in the
Partnership will be permitted after March 31, 1998.
The cash to be generated from leasing and financing operations is
anticipated to be sufficient to meet the Partnership's continuing operational
expenses.
Impact of the Year 2000 Issue
ReSourcePhoenix.com ("ReSourcePhoenix"), an affiliate of the parent to
the General Partner does all local computer processing for the General Partner.
And as such ResourcePhoenix manages the Year 2000 project on behalf of the
General Partner.
ResourcePhoenix has a Year 2000 project plan in place. The Year 2000
project team has identified risks, and has implemented remediation procedures
for its Year 2000 issues. ReSourcePhoenix has budgeted for the necessary
changes, built contingency plans, and has progressed along the scheduled
timeline. Installation of all remediation changes to critical software and
hardware was completed on November 5, 1999.
Costs incurred by the Partnership will be expensed as incurred and are
not currently anticipated to be material to the Partnership's financial position
or results of operations.
The Partnership's customers consist of lessees and borrowers. The
Partnership does not have knowledge of any exposure to any individual customer
that would materially impact the Partnership should the customer experience a
significant Year 2000 problem, however, cumulative exposure to multiple
individual customers could materially impact the Partnership should multiple
customers experience a significant Year 2000 problem.
11
<PAGE>
PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
September 30, 1999
Part II. Other Information.
-----------------
Item 1. Legal Proceedings.
-----------------
On October 28, 1997, a Class Action Complaint was filed against Phoenix
Leasing Incorporated, Phoenix Leasing Associates, II and III LP., Phoenix
Securities Inc. and Phoenix American Incorporated (the "Companies") in
California Superior Court for the County of Sacramento by eleven individuals on
behalf of investors in Phoenix Leasing Cash Distribution Funds I through V (the
"Partnerships"). The Companies were served with the Complaint on December 9,
1997. The Complaint sought declaratory and other relief including accounting,
receivership, imposition of a constructive trust and judicial dissolution and
winding up of the Partnerships, and damages based on fraud, breach of fiduciary
duty and breach of contract by the Companies as general partners of the
Partnerships.
Plaintiffs severed one cause of action from the Complaint, a claim
related to the marketing and sale of CDF V, and transferred it to Marin County
Superior Court (the "Berger Action"). Plaintiffs then dismissed the remaining
claims in Sacramento Superior Court and refiled them in a separate lawsuit
making similar allegations (the "Ash Action"). That complaint was subsequently
transferred to Marin County as well.
Plaintiffs have amended the Berger Action twice. Defendants recently
answered the complaint. Discovery has recently commenced. The Companies intend
to vigorously defend the Complaint.
Defendants have filed a demurrer to the Ash Complaint, which plaintiffs
amended three times. Discovery has not commenced. The Companies intend to
vigorously defend the Complaint.
Item 2. Changes in Securities. Inapplicable
---------------------
Item 3. Defaults Upon Senior Securities. Inapplicable
-------------------------------
Item 4. Submission of Matters to a Vote of Securities Holders. Inapplicable
-----------------------------------------------------
Item 5. Other Information. Inapplicable
-----------------
Item 6. Exhibits and Reports on 8-K:
---------------------------
a) Exhibits:
(27) Financial Data Schedule
b) Reports on 8-K: None
12
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
PHOENIX LEASING CASH DISTRIBUTION FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
------------------------------------------
(Registrant)
Date Title Signature
---- ----- ---------
November 10, 1999 Executive Vice President, /S/ GARY W. MARTINEZ
- ----------------- Chief Operating Officer --------------------
and a Director of (Gary W. Martinez)
Phoenix Leasing Incorporated
General Partner
November 10, 1999 Chief Financial Officer, /S/ HOWARD SOLOVEI
- ----------------- Treasurer and a Director of --------------------
Phoenix Leasing Incorporated (Howard Solovei)
General Partner
November 10, 1999 Senior Vice President, /S/ BRYANT J. TONG
- ----------------- Financial Operations --------------------
(Principal Accounting Officer) (Bryant J. Tong)
and a Director of
Phoenix Leasing Incorporated
General Partner
13
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<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 7,377
<SECURITIES> 171
<RECEIVABLES> 3,601
<ALLOWANCES> 1,004
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 3,034
<DEPRECIATION> 3,033
<TOTAL-ASSETS> 11,389
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 10,396
<TOTAL-LIABILITY-AND-EQUITY> 11,389
<SALES> 0
<TOTAL-REVENUES> 2,102
<CGS> 0
<TOTAL-COSTS> 1,016
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 37
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,086
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,086
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,086
<EPS-BASIC> .14
<EPS-DILUTED> 0
</TABLE>
