Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|X| Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the quarterly period ended September 30, 1996
|_| Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the transition period from _______ to _______
Commission File Number 000-19160
ATEL Cash Distribution Fund III, L.P.
(Exact name of registrant as specified in its charter)
California 94-3100855
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 989-8800
Indicate by a 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 |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
Page 1 of 15
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Page 2
<PAGE>
ATEL CASH DISTRIBUTION FUND III, L.P.
BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(Unaudited)
ASSETS
1996 1995
---- ----
Cash and cash equivalents $1,904,339 $1,874,774
Accounts receivable 724,487 873,451
Notes receivable 11,215 44,861
Investment in leases 29,718,814 39,107,792
---------------- ----------------
$32,358,855 $41,900,878
================ ================
LIABILITIES AND PARTNERS' CAPITAL
Non-recourse debt $7,119,061 $11,451,641
Accrued interest 94,405 125,026
Accounts payable:
General Partners 116,516 109,779
Other 221,997 290,428
Deposits due to lessees - 75,340
Unearned operating lease income 314,895 396,749
---------------- ----------------
Total liabilities 7,866,874 12,448,963
Partners' capital:
General Partners 118,236 97,750
Limited Partners 24,373,745 29,354,165
---------------- ----------------
Total partners' capital 24,491,981 29,451,915
---------------- ----------------
$32,358,855 $41,900,878
================ ================
See accompanying notes
Page 3
<PAGE>
ATEL CASH DISTRIBUTION FUND III, L.P.
INCOME STATEMENTS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Lease income:
Operating $7,580,444 $10,053,626 $2,472,318 $3,174,319
Direct financing 339,307 426,288 104,253 142,849
Leveraged 63,773 55,299 21,258 20,206
Gain on sales of assets 902,477 658,290 720,598 578,322
Other 993 1,952 1,185 453
Interest income 41,678 27,335 15,864 14,124
--------------- ---------------- ---------------- ----------------
8,928,672 11,222,790 3,335,476 3,930,273
--------------- ---------------- ---------------- ----------------
Expenses:
Depreciation 5,507,064 6,917,890 1,705,699 2,257,693
Interest expense 516,778 823,717 126,999 264,769
Management fees 537,724 790,705 164,227 299,836
Administrative cost reimbursements 181,917 205,296 72,993 69,794
Professional fees 35,266 52,591 13,662 9,833
Provision for losses 90,212 112,195 34,330 39,303
Taxes 47,579 14,685 (399) (110)
Other 61,163 65,310 22,462 15,056
--------------- ---------------- ---------------- ----------------
6,977,703 8,982,389 2,139,973 2,956,174
--------------- ---------------- ---------------- ----------------
Income before extraordinary item 1,950,969 2,240,401 1,195,503 974,099
Extraordinary gain on early
extinguishment of debt 97,608 - 97,608 -
--------------- ---------------- ---------------- ----------------
Net income $2,048,577 $2,240,401 $1,293,111 $974,099
=============== ================ ================ ================
Net income:
General Partners $20,486 $22,404 $12,931 $9,741
Limited Partners 2,028,091 2,217,997 1,280,180 964,358
--------------- ---------------- ---------------- ----------------
$2,048,577 $2,240,401 $1,293,111 $974,099
=============== ================ ================ ================
Income before extraordinary item
per limited partnership unit $0.26 $0.30 $0.16 $0.13
Extraordinary gain on early
extinguishment of debt per
limited partnership unit 0.01 - 0.01 -
--------------- ---------------- ---------------- ----------------
Net income per limited partnership
unit $0.27 $0.30 $0.17 $0.13
=============== ================ ================ ================
Weighted average number of units
outstanding 7,377,151 7,381,134 7,376,284 7,381,134
=============== ================ ================ ================
</TABLE>
Page 4
<PAGE>
See accompanying notes
ATEL CASH DISTRIBUTION FUND III, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
NINE MONTH PERIOD ENDED
SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners General
Units Amount Partners Total
<S> <C> <C> <C>
Balance December 31, 1995 7,378,884 $29,354,165 $97,750 $29,451,915
Repurchase of limited partnership units (2,600) (8,608) (8,608)
Distributions to limited partners (6,999,903) (6,999,903)
Net income 2,028,091 20,486 2,048,577
--------------- ---------------- ---------------- ----------------
Balance September 30, 1996 7,376,284 $24,373,745 $118,236 $24,491,981
=============== ================ ================ ================
</TABLE>
See accompanying notes
Page 5
<PAGE>
ATEL CASH DISTRIBUTION FUND III, L.P.
STATEMENTS OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operating activities:
Net income $2,048,577 $2,240,401 $1,293,111 $974,099
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation 5,507,064 6,917,890 1,705,699 2,257,693
Leveraged lease income (50,106) (40,931) (17,214) (15,395)
Gain on sales of assets (902,477) (658,290) (720,598) (578,322)
Provision for losses 90,212 112,195 34,330 39,303
Extraordinary gain on early extinguishment
of non-recourse debt (97,608) - (97,608) -
Changes in operating assets and liabilities:
Accounts receivable 148,964 (277,009) (120,258) (113,503)
Accounts payable, General Partner 6,737 154,868 (4,479) 20,038
Accounts payable, other (68,431) (409,373) 24,483 (423,099)
Accrued interest (30,621) (38,597) 7,812 36,860
Deposits due to lessees (75,340) - (75,340) -
Unearned operating lease income (81,854) (66,541) (177,352) (256,324)
--------------- ---------------- ---------------- ----------------
Net cash provided by operations 6,495,117 7,934,613 1,852,586 1,941,350
--------------- ---------------- ---------------- ----------------
Investing activities:
Proceeds from sales of equipment 3,670,704 1,732,899 2,644,955 1,292,586
Reduction in net investment in direct
financing leases 1,193,581 1,142,545 325,976 380,096
Purchases of equipment on direct finance
leases (120,000) (139,600) - (139,600)
Purchase of equipment on operating leases - (117,744) - (37,244)
Principal payments received on notes
receivable 33,646 33,645 11,215 11,215
--------------- ---------------- ---------------- ----------------
Net cash provided by investing
activities 4,777,931 2,651,745 2,982,146 1,507,053
--------------- ---------------- ---------------- ----------------
</TABLE>
Page 6
<PAGE>
ATEL CASH DISTRIBUTION FUND III, L.P.
STATEMENTS OF CASH FLOWS
(CONTINUED)
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Financing activities:
Repayments of non-recourse debt (4,234,972) (2,995,160) (1,840,698) (1,204,556)
Repurchases of units (8,608) - - -
Distributions to limited partners (6,999,903) (7,754,621) (2,212,106) (2,582,817)
--------------- ---------------- ---------------- ----------------
Net cash used in financing activities (11,243,483) (10,749,781) (4,052,804) (3,787,373)
--------------- ---------------- ---------------- ----------------
Net increase (decrease) in cash and cash
equivalents 29,565 (163,423) 781,928 (338,970)
Cash and cash equivalents at beginning
of period 1,874,774 1,566,318 1,122,411 1,741,865
--------------- ---------------- ---------------- ----------------
Cash and cash equivalents at end of period $1,904,339 $1,402,895 $1,904,339 $1,402,895
=============== ================ ================ ================
Supplemental disclosures of cash flow
information:
Cash paid for interest $516,778 $823,717 $126,999 $264,769
=============== ================ ================ ================
Supplemental schedule of non-cash transactions:
Gain on extinguishment of non-recourse debt $97,608 $97,608
=============== ================
</TABLE>
See accompanying notes
Page 7
<PAGE>
ATEL CASH DISTRIBUTION FUND III, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
1. Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the General Partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Investment in leases:
The Partnership's investment in leases consists of the following:
<TABLE>
<CAPTION>
Depreciation
Expense or Reclass-
December 31, Amortization ifications & September 30,
1995 Additions of Leases Dispositions 1996
---- --------- --------- -------------- ----
<S> <C> <C> <C> <C> <C>
Net investment in operating
leases $32,622,297 ($5,455,574) ($2,009,732) $25,156,991
Net investment in direct
financing leases 5,254,109 $120,000 (1,193,581) (82,031) 4,098,497
Net investment in leveraged
leases 1,623,406 - 50,106 (814,108) 859,404
Equipment held for sale or lease 432,348 - (51,490) (295,454) 85,404
Reserve for losses (824,368) (90,212) - 433,098 (481,482)
------------------ --------------- ---------------- ---------------- ----------------
$39,107,792 $29,788 ($6,650,539) ($2,768,227) $29,718,814
================== =============== ================ ================ ================
</TABLE>
The following schedule provides an analysis of the Partnership's investment in
property on operating leases by major classifications as of December 31, 1995,
acquisitions and dispositions during the quarters ended March 31, June 30 and
September 30, 1996 and as of September 30, 1996.
<TABLE>
<CAPTION>
December 31, --------------- Dispositions --------------- September 30,
1995 1st Quarter 2nd Quarter 3rd Quarter 1996
---- ----------- ----------- ----------- ----
<S> <C> <C> <C> <C> <C>
Mining $18,592,029 ($114,492) $18,477,537
Manufacturing 12,773,604 - 12,773,604
Transportation 7,777,179 - 7,777,179
Aircraft 5,275,000 - 5,275,000
Utilities 3,946,886 (225,066) 3,721,820
Printing 3,454,353 - 3,454,353
Materials handling 3,987,085 ($347,028) - ($1,183,278) 2,456,779
Food processing 2,438,524 - - - 2,438,524
Other 345,815 - - - 345,815
Medical 2,155,489 (1,887,374) - - 268,115
Communications 290,175 - - (280,119) 10,056
Furniture and fixtures 2,041,222 - - (2,041,222) -
------------------ --------------- ---------------- ---------------- ----------------
63,077,361 (2,234,402) (339,558) (3,504,619) 56,998,782
Less accumulated
depreciation (30,455,064) (114,018) (1,573,396) 300,687 (31,841,791)
------------------ --------------- ---------------- ---------------- ----------------
$32,622,297 ($2,348,420) ($1,912,954) ($3,203,932) $25,156,991
================== =============== ================ ================ ================
</TABLE>
Page 8
<PAGE>
ATEL CASH DISTRIBUTION FUND III, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
2. Investment in leases (continued):
At September 30, 1996, the aggregate amounts of future minimum lease payments
are as follows:
<TABLE>
<CAPTION>
Direct
Operating Financing Total
--------- --------- -----
<S> <C> <C> <C>
Three months ending December 31, 1996 $2,374,356 $512,260 $2,886,616
Year ending December 31, 1997 7,178,050 1,333,179 8,511,229
1998 4,324,264 1,099,859 5,424,123
1999 816,880 546,039 1,362,919
2000 - 144,416 144,416
Thereafter - 41,714 41,714
--------------- ---------------- ----------------
$14,693,550 $3,677,467 $18,371,017
=============== ================ ================
</TABLE>
3. Non-recourse debt:
Notes payable to financial institutions are due in varying monthly, quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments of lease payments and pledges of the assets which were purchased or
financed with the proceeds of the particular notes. Interest rates on the notes
vary from 8% to 13.3%.
Future minimum principal payments of non-recourse debt as of September 30, 1996
are as follows:
<TABLE>
<CAPTION>
Principal Interest Total
--------- -------- -----
<S> <C> <C> <C>
Three months ending December 31, 1996 $1,059,012 $151,836 $1,210,848
Year ending December 31, 1997 3,426,683 370,908 3,797,591
1998 2,219,659 136,631 2,356,290
1999 356,416 22,120 378,536
2000 57,291 2,374 59,665
--------------- ---------------- ----------------
$7,119,061 $683,869 $7,802,930
=============== ================ ================
</TABLE>
4. Commitments, management and report of fees:
The terms of the Agreement of Limited Partnership provide that the General
Partners and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and management of the Partnership.
The General Partners and/or Affiliates earned partnership and equipment
management fees of $790,705 in 1995 and $537,724 in 1996, pursuant to the
Agreement of Limited Partnership.
The amounts above are gross amounts incurred by the General Partners and/or
Affiliates, including commissions to broker dealers for the sales of Partnership
Units.
5. Line of credit:
The Partnership participates with the General Partner and certain of its
affiliates in a $70,000,000 revolving line of credit with a financial
institution. The line of credit expires on July 18, 1997.
The facility, when used by the Partnership, is collateralized by (i) leases and
equipment owned by the Partnership and financed by the lines and (ii) all other
assets owned by the Partnership except equipment, lease receipts and residual
values specifically pledged to other equipment funding sources.
Page 9
<PAGE>
ATEL CASH DISTRIBUTION FUND III, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
6. Extraordinary gain on extinguishment of debt:
In January 1996, Barney's, Inc., one of the Partnership's lessees filed for
reorganization under Chapter 11 of the United States Bankruptcy Code. The
Partnership determined that the assets under an operating lease to this
particular lessee were impaired as of December 31, 1995. The Partnership
estimated that only a portion of the contractual cash flows would be received
under the lease. Under Financial Accounting Standards Board Statement No. 121
(FAS 121), the estimated cash flows were discounted at the effective rate of the
non-recourse debt related to the lease and the assets were written down to the
present value of those cash flows.
Assets and liabilities related to the lease transaction were as follows as of
December 31, 1995:
Assets at cost $2,041,222
Accumulated depreciation (780,765)
----------------
Book value of lease assets 1,260,457
Deposits from lessee (75,340)
Non-recourse debt (1,051,398)
----------------
Net assets included in the Partnership's balance sheet as of
December 31, 1995 before provision for impairment 133,719
Reserve for impairment (471,906)
----------------
Excess of non-recourse debt over net assets ($338,187)
================
On July 19, 1996, the assets subject to the lease were purchased by a third
party. As part of the purchase and transaction restructure, the related
non-recourse debt was extinguished by the lender and the Partnership received a
small amount of cash proceeds. The sale resulted in a gain on the sale of the
assets and a gain on the extinguishment of the related non-recourse debt. The
following summarizes this transaction:
Assets at cost $2,041,222
Accumulated depreciation at June 30, 1996 (954,271)
----------------
Book value of lease assets at June 30, 1996 1,086,951
Reserve for impairment (471,906)
----------------
Carrying value at June 30, 1996 615,045
Deposits from lessee retained by Partnership (75,340)
----------------
Excess of carrying value over deposits from lessee 539,705
Gross sales proceeds 957,680
----------------
Gain on sale of assets $417,975
================
Non-recourse debt $1,051,398
Gross sales proceeds used to extinguish non-recourse debt (953,790)
----------------
Extraordinary gain on extinguishment of debt $97,608
================
Gross sales proceeds $957,680
Gross sales proceeds used to extinguish non-recourse debt (953,790)
----------------
Net cash proceeds to Partnership $3,890
================
Page 10
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capital Resources and Liquidity
During the third quarter of 1996, the Partnership's primary source of liquidity
was operating lease rents. The liquidity of the Partnership will vary in the
future, increasing to the extent cash flows from leases exceed expenses, and
decreasing as lease assets are acquired, as distributions are made to the
Limited Partners and to the extent expenses exceed cash flows from leases.
In the event the Partnership's reserves were found to be inadequate, the
Partnership would likely be in a position to borrow against its current
portfolio to meet such requirements. The General Partners envision no such
requirements for operating purposes.
As of September 30, 1996, the Partnership had borrowed approximately
$32,425,000. The remaining unpaid balance of such borrowings at September 30,
1996 was approximately $7,119,000. The borrowings are non-recourse to the
Partnership, that is, the only recourse of the lender for a lessee default will
be to the equipment or corresponding lease acquired with the loan proceeds. The
General Partners expect that aggregate borrowings in the future will be
approximately 40% of aggregate equipment cost. In any event, the Agreement of
Limited Partnership limits such borrowings to 40% of the total cost of
equipment, in aggregate.
The Partnership participates with the General Partner and certain of its
affiliates in a $70,000,000 revolving line of credit with a financial
institution. The line of credit expires on July 18, 1997.
The facility, when used by the Partnership, is collateralized by (i) leases and
equipment owned by the Partnership and financed by the lines and (ii) all other
assets owned by the Partnership except equipment, lease receipts and residual
values specifically pledged to other equipment funding sources.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. As of September 30, 1996, there were no
such commitments.
The Partnership made distributions of cash from 1996 first quarter operations in
February, March and April 1996. The Partnership made distributions of cash from
1996 second quarter operations in May, June and July 1996. The Partnership made
distributions of cash from 1996 third quarter operations in August, September
and October 1996.
Distributions were made to the limited partners as follows:
<TABLE>
<CAPTION>
Annualized
Month in which distribution Amount of distribution per distribution
was made Limited Partnership Unit rate
<S> <C> <C> <C>
Monthly distributions: February $0.11667 14.00%
March $0.11667 14.00%
April $0.08333 10.00%
May $0.10000 12.00%
June $0.10000 12.00%
July $0.10000 12.00%
August $0.10000 12.00%
September $0.10000 12.00%
October $0.10000 12.00%
Quarterly distributions: April $0.31667 12.67%
July $0.30000 12.00%
October $0.30000 12.00%
</TABLE>
If interest rates increase or decrease significantly, the lease rates that the
Partnership can obtain on future leases will be expected to increase or decrease
in parallel, as the cost of capital is a significant factor in the pricing of
lease financing. Leases already in place, for the most part, would not be
affected by changes in interest rates.
Page 11
<PAGE>
If inflation in the general economy becomes significant, it may affect the
Partnership inasmuch as the residual (resale) values and rates on re-leases of
the Partnership's leased assets may increase as the costs of similar assets
increase. However, the Partnership's revenues from existing leases would not
increase, as such rates are generally fixed for the terms of the leases without
adjustment for inflation.
1996 vs. 1995 - nine months
During the nine month period ended September 30, 1995, the Partnership's primary
source of cash was lease rents.
Sources of cash from investing activities consisted primarily of direct
financing lease rents accounted for as reductions of the net investment in
direct financing leases and the proceeds from sales of lease assets. Proceeds
from sales of assets increased by $1,937,805 compared to 1995. Asset sales have
increased as more leases matured and the related assets were subsequently sold.
Asset sales are not expected to be consistent from one period to another.
In 1996 and 1995, there were no financing sources of cash.
1996 vs. 1995 - three months
During the third quarter, the Partnership's primary source of cash was lease
rents.
Sources of cash from investing activities consisted primarily of direct
financing lease rents accounted for as reductions of the net investment in
direct financing leases and the proceeds from sales of lease assets as noted
above for the nine month period.
In 1996 and 1995, there were no financing sources of cash.
Results of Operations
Operations in the third quarter of 1996 resulted in net income of $1,393,111
compared to $974,099 in 1995. Net income for the first nine months of 1996 was
$2,048,577 compared to $2,240,401 in 1995.
1996 vs. 1995
Nine months:
Operating lease revenues decreased by $2,473,182 compared to 1995 and
depreciation expense decreased by $1,310,826. Both of these decreases are due to
the terminations of operating leases over the last year and the subsequent sales
of the related assets.
Effective January 1, 1996, the Partnership suspended the recognition of income
under its lease with Barney's, Inc. The non-recourse debt related to this
transaction was also put in a non-accrual status, that is, interest expense was
no longer accrued. In July 1996, the underlying assets were sold to an unrelated
third party and the related debt was extinguished as a part of the transaction.
The Partnership recorded a gain on the sale of the assets of $417,925. The sale
resulted in the debt being extinguished for less than its carrying amount,
resulting in an extraordinary gain of $97,608.
The non-accrual of lease revenues on the Barney's lease contributed about
$321,000 to the decline in operating lease revenues over the nine month period.
Interest expense has decreased due to both the scheduled and non-scheduled
(Barney's, Inc.) reductions of debt balances in the nine month period.
Page 12
<PAGE>
Management fees are based on the Partnership's revenues and its distributions to
its Limited Partners. Both lease revenues and distributions to Limited Partners
decreased compared to 1995. These decreases resulted in a decrease in management
fees of approximately $253,000.
Three months:
Operating lease revenues decreased by $702,001 compared to 1995. Direct
financing lease revenues decreased $38,596 compared to 1995. These decreases
resulted from the same factors discussed above relating to the none month
period. Gains or losses on equipment sales have fluctuated significantly for the
reasons noted above.
Depreciation expense decreased by $551,994 from 1995 to 1996 for the three month
periods. This decrease resulted from the factors discussed above as they related
to the nine month period. Management fees also decreased due to the factors
noted above relating to the nine month period.
Page 13
<PAGE>
PART II OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
Inapplicable.
Item 2. CHANGES IN SECURITIES.
Inapplicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
Inapplicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS.
Inapplicable.
Item 5. OTHER INFORMATION.
Inapplicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, September 30, 1996 and December
31, 1995.
Income statements for the nine and three month
periods ended September 30, 1996 and 1995.
Statement of changes in partners' capital for the
nine month period ended September 30, 1996.
Statements of cash flows for the nine and three
month periods ended September 30, 1996 and 1995.
Notes to the Financial Statements
2. Financial Statement Schedules
All other schedules for which provision is made in
the applicable accounting regulations of the
Securities and Exchange Commission are not
required under the related instructions or are
inapplicable, and therefore have been omitted.
(b) Report on Form 8-K
None
Page 14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date:
November 11, 1996
ATEL CASH DISTRIBUTION FUND III, L.P.
(Registrant)
By: /s/ A. J. BATT
------------------------------------------
A. J. Batt
General Partner of registrant
By: /s/ DEAN L. CASH
------------------------------------------
Dean L. Cash
General Partner of registrant
By: /s/ F. RANDALL BIGONY
------------------------------------------
F. RANDALL BIGONY
Principal financial officer
of registrant
By: /s/ DONALD E. CARPENTER
-------------------------------------------
Donald E. Carpenter,
Principal accounting
officer of registrant
Page 15
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 1904339
<SECURITIES> 0
<RECEIVABLES> 724487
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 32358855
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 24491981
<TOTAL-LIABILITY-AND-EQUITY> 32358855
<SALES> 0
<TOTAL-REVENUES> 8928672
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6370713
<LOSS-PROVISION> 90212
<INTEREST-EXPENSE> 516778
<INCOME-PRETAX> 1950969
<INCOME-TAX> 0
<INCOME-CONTINUING> 1950969
<DISCONTINUED> 0
<EXTRAORDINARY> 97608
<CHANGES> 0
<NET-INCOME> 2048577
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
