UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the fiscal quarter ended March 31, 1997.
[ ] 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 33-32258
-----------------------
PLM EQUIPMENT GROWTH FUND V
(Exact name of registrant as specified in its charter)
California 94-3104548
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Market, Steuart Street Tower
Suite 800, San Francisco, CA 94105-1301
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code (415) 974-1399
-----------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____
<PAGE>
PLM EQUIPMENT GROWTH FUND V
(A Limited Partnership)
BALANCE SHEETS
(in thousands, except unit amounts)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-----------------------------------
<S> <C> <C>
Equipment held for operating leases $ 148,920 $ 155,004
Less accumulated depreciation (81,195 ) (81,541 )
-----------------------------------
67,725 73,463
Equipment held for sale 1,658 --
-----------------------------------
Net equipment 69,383 73,463
Cash and cash equivalents 2,686 4,662
Restricted cash 592 553
Investments in unconsolidated special purpose entities 11,101 12,673
Accounts and note receivable, net of allowance for doubtful
accounts of $575 in 1997 and $184 in 1996 3,774 3,508
Net investment in direct finance lease 2,183 2,282
Prepaid expenses and other assets 491 557
Deferred charges, net of accumulated amortization of
$735 in 1997 and $684 in 1996 650 721
-----------------------------------
Total assets $ 90,860 $ 98,419
===================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 1,164 $ 1,060
Due to affiliates 405 699
Lessee deposits and reserve for repairs 4,277 3,901
Short term note payable 1,063 2,463
Note payable 36,500 38,000
-----------------------------------
Total liabilities 43,409 46,123
Partners' capital:
Limited partners (9,123,174 depositary units at March 31,
1997 and 9,169,019 at December 31, 1996) 47,451 52,296
General Partner -- --
-----------------------------------
Total partners' capital 47,451 52,296
-----------------------------------
Total liabilities and partner's capital $ 90,860 $ 98,419
===================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND V
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(in thousands of dollars except per unit amounts)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1997 1996
------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 7,868 $ 7,961
Interest and other income 150 192
Net gain on disposition of equipment 78 52
------------------------------
Total revenues 8,096 8,205
Expenses:
Depreciation and amortization 4,119 3,146
Management fees to affiliate 376 406
Repairs and maintenance 667 588
Interest expense 667 690
Marine equipment operating expenses 1,786 2,133
Insurance expense to affiliate 259 198
Other insurance expense 196 341
General and administrative expenses
to affiliates 248 149
Other general and administrative expenses 135 136
Bad debt expense 338 26
------------------------------
------------------------------
8,791 7,813
------------------------------
Equity in net income (loss) of unconsolidated
special purpose entities 149 (344 )
------------------------------
Net income (loss) $ (546 ) $ 48
==============================
Partners' share of net income (loss):
Limited partners $ (739 ) $ (194 )
General Partner 193 242
------------------------------
Total $ (546 ) $ 48
==============================
Net income (loss) per weighted-average depositary unit
(9,160,485 units at March 31, 1997,
9,178,269 units at March 31, 1996) $ (0.08) $ (0.02 )
==============================
Cash distributions $ 3,861 $ 4,829
==============================
Cash distributions per weighted-average depositary unit $ 0.40 $ 0.50
==============================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND V
( A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For
the period from December 31, 1995 to March 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
-------------------------------------------------------
<S> <C> <C> <C>
Partners' capital at December 31, 1995 $ 58,017 $ -- $ 58,017
Net income 11,524 917 12,441
Repurchase of depositary units (79 ) -- (79 )
Cash distributions (17,166 ) (917 ) (18,083 )
-------------------------------------------------------
Partners' capital at December 31, 1996 52,296 -- 52,296
Net income (loss) (739 ) 193 (546 )
Repurchase of depositary units (438 ) -- (438 )
Cash distributions (3,668 ) (193 ) (3,861 )
-------------------------------------------------------
Partners' capital at March 31, 1997 $ 47,451 $ -- $ 47,451
=======================================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND V
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1997 1996
------------------------------
<S> <C> <C>
Operating activities:
Net income (loss) $ (546 ) $ 48
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Net gain on disposition of equipment (78 ) (52 )
Equity in net (income) loss from
unconsolidated special purpose entities (149 ) 344
Depreciation and amortization 4,119 3,146
Changes in operating assets and liabilities:
Restricted cash (39 ) --
Accounts and note receivable, net (174 ) (144 )
Prepaid expenses 66 106
Accounts payable and accrued expenses 88 47
Due to affiliates (294 ) 1
Lessee deposits and reserve for repairs 392 (484 )
-----------------------------
Net cash provided by operating activities 3,385 3,012
-----------------------------
Investing activities:
Payments for capital improvements (73 ) (64 )
Investment in and equipment purchased and placed in
unconsolidated special purpose entities -- (5,610 )
Distributions from unconsolidated special purpose entities 1,720 1,567
Principal payments received on direct finance lease -- 76
Proceeds from disposition of equipment 192 435
-----------------------------
Net cash provided (used in) by investing activities 1,839 (3,596 )
-----------------------------
Financing activities:
Payment for loan costs (1 ) --
Proceeds from short-term note payable -- 5,610
Payments of short-term note payable (1,400 ) --
Payments of note payable (1,500 ) --
Cash distributions paid to General Partner (193 ) (242 )
Cash distributions paid to limited partners (3,668 ) (4,587 )
Repurchase of depositary units (438 ) (76 )
-----------------------------
Net cash used in financing activities (7,200 ) 705
-----------------------------
Net (decrease) increase in cash and cash equivalents (1,976 ) 121
Cash and cash equivalents at beginning of period 4,662 5,583
=============================
Cash and cash equivalents at end of period $ 2,686 $ 5,704
=============================
Supplemental information:
Interest paid $ 702 $ 722
=============================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH FUND V
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc. (FSI or
the General Partner), the accompanying unaudited financial statements contain
all adjustments necessary, consisting primarily of normal recurring accruals, to
present fairly the financial position of PLM Equipment Growth Fund V (the
Partnership) as of March 31, 1997 and December 31, 1996, the statements of
operations for the three months ended March 31, 1997 and 1996; the statements of
cash flows for the three months ended March 31, 1997 and 1996, and the
statements of changes in partners' capital for the period December 31, 1995 to
March 31, 1997. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted from the accompanying
financial statements. For further information, reference should be made to the
financial statements and notes thereto included in the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1996, on file at the
Securities and Exchange Commission.
2. Reclassification
Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation.
3. Repurchase of Depositary Units
Pursuant to the Partnership repurchase plan at December 31, 1996, the
Partnership agreed to repurchase approximately 120,000 depositary units for an
aggregate purchase price of $1.2 million. As of March 31, 1997, the Partnership
has repurchased 46,000 depositary units for $0.4 million. The General Partner
anticipates that the remaining units will be repurchased during the next three
months.
4. Cash Distributions
Cash distributions are recorded when paid and totaled $3.9 million for the three
months ended March 31, 1997. Cash distributions to limited partners in excess of
net income are considered to represent a return of capital. Cash distributions
to the limited partners of $3.7 million and $4.6 for the three months ended
March 31, 1997 and 1996, respectively, were deemed to be a return of capital.
Cash distributions related to the results from the first quarter of 1997, of
$2.7 million, were paid or are payable during April and May 1997, depending on
whether the individual limited partner elected to receive a monthly or quarterly
distribution check.
5. Investments in Unconsolidated Special Purpose Entities
The net investments in unconsolidated special purpose entities (USPEs) include
the following jointly-owned equipment (and related assets and liabilities) (in
thousands):
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
50% interest in an entity owning a bulk carrier $ 2,960 $ 3,196
50% interest in an entity owning a product tanker 1,839 2,144
25% interest in two commercial aircraft on direct finance lease 2,887 2,768
17% interest in two trusts owning three commercial aircraft, two
aircraft engines, and a portfolio of aircraft rotables 3,415 4,565
----------- -----------
Net investments $ 11,101 $ 12,673
=========== ===========
</TABLE>
PLM EQUIPMENT GROWTH FUND V
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
6. General Partner and Transactions with Affiliates
Partnership management fees payable to an affiliate of the General Partner were
$658,000 and $952,000 at March 31, 1997 and December 31, 1996, respectively. The
Partnership's proportional share of USPE-affiliated management fees of $(7,000)
and $26,000 were payable as of March 31, 1997 and December 31, 1996,
respectively. The Partnership's proportional share of USPE-affiliated management
fees expense during the three months ended March 31, 1997 and 1996 was $77,000
and $67,000, respectively. The Partnership's proportional share of USPE data
processing and administrative expenses to affiliates was $17,000 and $11,000
during the three months ended March 31, 1997 and 1996, respectively. The
Partnership's proportional share of USPEs paid $92,000 and $58,000 during the
three months ended March 31, 1997 and 1996, respectively, to Transportation
Equipment Indemnity Company, Ltd. (TEI) which provides marine insurance coverage
for Partnership equipment and other insurance brokerage services.
TEI is an affiliate of the General Partner.
The Partnership's proportional share of USPE lease negotiation and
equipment acquisition fees of $0.3 million were incurred to PLM Worldwide
Management Services (WMS) during the three months ended March 31, 1996, and none
were incurred during the same period of 1997. WMS is a wholly owned subsidiary
of PLM International, Inc.
The balance due to affiliates at March 31, 1997, includes $0.7 million due
to FSI and its affiliates for management fees and $0.3 million due from
affiliated USPEs. The balance due to affiliates at December 31, 1996, includes
$1.0 million due to FSI and its affiliates for management fees and $0.3 million
due from affiliated USPEs.
7. Equipment
Owned equipment held for operating leases is stated at cost. Equipment held for
sale is stated at the lower of the equipment's depreciated cost or fair value
less cost to sell and, is subject to a pending contract for sale.
The components of equipment are as follows (in thousands):
<TABLE>
<CAPTION>
March 31, December 31,
Equipment held for operating leases 1997 1996
------------------------------------------------------------------------------
<S> <C> <C>
Aircraft $ 51,353 $ 57,205
Marine vessels 52,259 52,259
Trailers 9,667 9,683
Marine containers 24,189 24,451
Rail equipment 11,452 11,406
----------- ------------
148,920 155,004
Less accumulated depreciation (81,195 ) (81,541 )
----------- ------------
67,725 73,463
Equipment held for sale 1,658 --
----------- ------------
Net equipment $ 69,383 $ 73,463
=========== ============
</TABLE>
As of March 31, 1997, all of the equipment was on lease or operating in
PLM-affiliated short-term trailer rental facilities, except for a railcar. At
December 31, 1996, all of the equipment was on lease or operating in
PLM-affiliated short-term trailer rental facilities, except for 14 railcars. The
net book value of the equipment off lease was $15,000 and $0.2 million at March
31, 1997 and December 31, 1996, respectively.
At March 31, 1997, an aircraft engine, with a net book value of $1.7
million, is currently on lease and subject to a pending sale for $2.0 million.
This aircraft engine is classified as held for sale.
<PAGE>
PLM EQUIPMENT GROWTH FUND V
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
7. Equipment (continued)
During the three months ended March 31, 1997, the Partnership disposed of
marine containers, railcars and trailers with an aggregate net book value of
$114,000 for $192,000.
During the three months ended March 31, 1996, the Partnership disposed of
marine containers and railcars with an aggregate net book value of $383,000 and
received proceeds of $435,000.
8. Debt
As of March 31, 1997, the Partnership had borrowings of $1.1 million with the
short-term joint $50 million credit facility and American Finance Group, Inc.
had $22.5 million in outstanding borrowings. Neither PLM Equipment Growth Fund
IV, PLM Equipment Growth Fund VI, PLM Equipment Growth & Income Fund VII,
Professional Lease Management Income Fund I, L.L.C., nor TEC Acquisub, Inc. had
any outstanding borrowings.
9. Contingencies
As more fully described by the Partnership in its Form 10-K for the year ended
December 31, 1996, PLM International, Inc. and various of its affiliates are
named as defendants in a lawsuit filed as a class action on January 22, 1997 in
the Circuit Court of Mobile County, Mobile, Alabama (Case No. CV-97-251). On
February 3, 1997, the state court filed an Order conditionally certifying the
class pursuant to the provisions of Rule 23 of the Alabama Rules of Civil
Procedure (ARCP), as requested by plaintiffs in an ex parte motion filed on
January 22, 1997. Defendants were not given notice of the motion, nor were they
given an opportunity to be heard regarding the issue of conditional class
certification. The Order specifies that the class shall consist of (with certain
narrow exceptions) all purchasers of limited partnership units in the
Partnership, PLM Equipment Growth Fund IV, PLM Equipment Growth Fund VI, and PLM
Equipment Growth & Income Fund VII. In issuing the Order, the court emphasized
that the certification is conditional in accordance with Rule 23(d) of the ARCP,
and that the plaintiffs will bear the burden of proving each requisite element
of Rule 23 at the time of the evidentiary hearing on the issue of class
certification. To date, no such hearing date has been set. The defendants filed
a Notice of Removal of the lawsuit from the state court to the United States
District Court for the Southern District of Alabama, Southern Division (Civil
Action No. 97-0177-BH-C) on March 6, 1997, arguing that the parties are fully
diverse for the purposes of diversity jurisdiction pursuant to 28 U.S.C. Section
1441. The plaintiffs filed a motion to remand the class action to the state
court, and defendants have responded to this motion. Defendants do not need to
respond to the complaint until after the federal court decides the motion to
remand. PLM International, Inc. believes the allegations to be completely
without merit and intends to defend this matter vigorously.
(this space intentionally left blank)
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
(I) RESULTS OF OPERATIONS
Comparison of the Partnership's Operating Results for the Three Months Ended
March 31, 1997 and 1996
(A) Owned Equipment Operations
Lease revenues less direct expenses (defined as repairs and maintenance, marine
equipment operation, and asset-specific insurance expenses) on owned equipment
decreased during the three months ended March 31, 1997, when compared to the
same quarter of 1996. The following table presents revenues less direct expenses
by owned equipment type (in thousands):
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1997 1996
----------------------------
<S> <C> <C>
Aircraft and aircraft engines $ 2,438 $ 1,305
Marine vessels 1,055 970
Trailers 423 335
Rail equipment 584 482
Mobile offshore drilling unit -- 651
Marine containers 471 975
</TABLE>
Aircraft: Aircraft lease revenues and direct expenses were $2.5 million and
$20,000, respectively, for the three months ended March 31, 1997, compared to
$1.3 million and $12,000, respectively, during the same period of 1996. The
increase in aircraft contribution was due to the transfer of two commercial
aircraft into the Partnership from unconsolidated special purpose entities
(USPEs) and the purchase of three commercial aircraft and a commuter aircraft
during the second and third quarters of 1996.
Marine vessels: Marine vessel lease revenues and direct expenses were $3.7
million and $2.6 million, respectively, for the three months ended March 31.
1997, compared to $4.0 million and $3.1 million, respectively, during the same
period of 1996. The increase in marine vessel contribution was primarily due to
lower voyage costs and lower drydock expenses, offset in part by the marine
vessels earning lower lease rates during the first quarter of 1997, when
compared to the same period of 1996.
Trailers: Trailer lease revenues and direct expenses were $0.6 million and $0.2
million, respectively, for the three months ended March 31, 1997, compared to
$0.4 million and $34,000, respectively during the same period of 1996. The
number of trailers that transitioned to the PLM-affiliated short-term rental
yards increased during 1996 resulting in a larger number of the Partnership's
trailers operating in the rental yards during 1997, when compared to the same
period of 1996. Trailers earned higher lease rates while in the affiliated
short-term rental yard than they earned during the same period of 1996 while
they were on term lease; however, the trailers also incurred higher maintenance
costs due to the standards set for a rental-ready unit.
Rail equipment: Rail equipment lease revenues and direct expenses were $0.6
million and $42,000, respectively, for the three months ended March 31, 1997,
compared to $0.6 million and $0.1 million, respectively, during the same period
of 1996. Although the railcar fleet remained relatively the same size for both
quarters, the increase in railcar contribution resulted from a decrease in
running repairs required on certain of the railcars in the fleet during 1997.
Mobile offshore drilling unit: The elimination of the mobile offshore drilling
unit contribution during 1997 was due to the sale of this equipment during the
second quarter of 1996.
Marine containers: Marine container lease revenues and direct expenses were $0.5
million and $5,000, respectively, for the three months ended March 31, 1997,
compared to $1.0 million and $7,000, respectively during the same quarter of
1996. The number of marine containers owned by the Partnership has been
declining over the past 12 months due to sales and dispositions. The result of
this declining fleet has been a decrease in marine container contribution.
(B) Indirect Expenses Related to Owned Equipment Operations
Total indirect expenses of $5.9 million for the quarter ended March 31, 1997
increased from $4.6 million for the same period in 1996. The significant
variances are explained as follows:
(a) A $1.0 million increase in depreciation and amortization expenses from
1996 levels reflects the purchase of three commercial aircraft and a commuter
aircraft, and the transfer of two commercial aircraft from USPEs during 1996,
offset in part by the double-declining balance method of depreciation.
(b) A $0.1 million increase in administrative expenses was due to the
additional allocation of rental yard costs incurred due to the increased number
of trailers in the PLM-affiliated short-term rental yards.
(c) A $0.3 million increase in bad debt expenses was due to an increase in
uncollectable amounts due from certain lessees.
(C) Net Gain on Disposition of Owned Equipment
The net gain on the disposition of equipment for the first quarter of 1997
totaled $78,000, which resulted from the sale of marine containers and trailers
with an aggregate net book value of $114,000, for proceeds of $192,000. For the
first quarter of 1996, the $52,000 net gain on the disposition of equipment
resulted from the sale or disposal of marine containers and railcars with an
aggregate net book value of $383,000, for proceeds of $435,000.
(D) Interest and Other Income
Interest and other income decreased $42,000 during the first quarter of 1997,
and was due primarily to lower average cash balances available for investment
throughout most of the quarter when compared to the same period of 1996.
(E) Equity in Net Income (Loss) of Unconsolidated Special Purpose Entities
(USPEs)
Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity method is shown in the following table by equipment type
(in thousands):
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1997 1996
----------------------------
<S> <C> <C>
Aircraft $ 308 $ (116 )
Marine vessels (159 ) (228 )
</TABLE>
Aircraft: As of March 31, 1997, the Partnership has an interest in two trusts
that own three commercial aircraft, two aircraft engines, and a portfolio of
aircraft rotables and also has an interest in two commercial aircraft on a
direct finance lease. As of March 31, 1996, the Partnership owned the interest
in the two trusts which own three commercial aircraft, two aircraft engines, and
a portfolio of aircraft rotables, an interest in a trust which held seven
commercial aircraft; and had just purchased an interest in a trust that held
five commercial aircraft. During the first quarter of 1997, revenues of $0.6
million were offset by depreciation and administrative expenses of $0.3 million.
During the same period of 1996, lease revenues of $0.7 million were offset by
depreciation and administrative expenses of $0.8 million. The decrease in lease
revenues and administrative expenses was due to the transfer of two commercial
aircraft from the USPEs to the Partnership, and was offset in part by the
revenue earned from the direct finance lease.
Marine vessels: As of March 31, 1997 and 1996, the Partnership owned an interest
in two marine vessels. During the first quarter of 1997, revenues of $0.8
million were offset by depreciation and administrative expenses of $1.0 million.
During the same period of 1996, revenues of $0.8 million were offset by
depreciation and administrative expenses of $1.1 million. The primary reason for
the decrease in depreciation and administrative expenses was due to the
double-declining balance method of depreciation.
(F) Net Income (Loss)
As a result of the foregoing, the Partnership's net loss for the period ended
March 31, 1997 was $0.5 million, compared to a net income of $48,000 during the
same period in 1996. The Partnership's ability to operate and liquidate assets,
secure leases, and re-lease those assets whose leases expire during the life of
the Partnership is subject to many factors and the Partnership's performance in
the first quarter of 1997 is not necessarily indicative of future periods. In
the first quarter of 1997, the Partnership distributed $3.7 million to the
limited partners, or $0.40 per weighted-average depositary unit.
(II) FINANCIAL CONDITION - CAPITAL RESOURCES, LIQUIDITY, AND DISTRIBUTIONS
For the three months ended March 31, 1997, the Partnership generated sufficient
operating cash (net cash provided by operating activities plus distributions
from unconsolidated special purpose entities) to meet its operating obligations
and maintain the current level of distributions (total for the three months
ended March 31, 1997 of approximately $3.9 million) to the partners. During the
three months ended March 31, 1997, the General Partner sold equipment and
received proceeds of $0.2 million.
The General Partner had entered into a short-term joint $50 million credit
facility. As of May 13, 1997, the Partnership had $1.1 million in outstanding
borrowings and American Finance Group, Inc. had $22.5 million. Neither PLM
Equipment Growth Fund IV, PLM Equipment Growth Fund VI, PLM Equipment Growth &
Income Fund VII, Professional Lease Management Income Fund I, L.L.C., nor TEC
Acquisub, Inc. had any outstanding borrowings.
(III) Outlook for the Future
Several factors may affect the Partnership's operating performance in 1997 and
beyond, including changes in the markets for the Partnership's equipment and
changes in the regulatory environment in which that equipment operates.
The Partnership's operation of a diversified equipment portfolio in a broad
base of markets is intended to reduce its exposure to volatility in individual
equipment sectors.
The ability of the Partnership to realize acceptable lease rates on its
equipment in the different equipment markets is contingent on many factors, such
as specific market conditions and economic activity, technological obsolescence,
and government or other regulations. The unpredictability of some of these
factors, or of their occurrence, makes it difficult for the General Partner to
clearly define trends or influences that may impact the performance of the
Partnership's equipment. The General Partner continuously monitors both the
equipment markets and the performance of the Partnership's equipment in these
markets. The General Partner may make an evaluation to reduce the Partnership's
exposure to equipment markets in which it determines that it cannot operate
equipment and achieve acceptable rates of return. Alternatively, the General
Partner may make a determination to enter equipment markets in which it
perceives opportunities to profit from supply/demand instabilities or other
market imperfections.
The Partnership intends to use excess cash flow, if any, after payment of
expenses, loan principal, and cash distributions to acquire additional equipment
during the first seven years of Partnership operations. The General Partner
believes that these acquisitions may cause the Partnership to generate
additional earnings and cash flow for the Partnership.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
<PAGE>
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.
PLM EQUIPMENT GROWTH FUND V
By: PLM Financial Services, Inc.
General Partner
Date: May 13, 1997 By: /s/ David J. Davis
------------------
David J. Davis
Vice President and
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 2,686
<SECURITIES> 0
<RECEIVABLES> 3,774
<ALLOWANCES> (575)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 148,920
<DEPRECIATION> (81,195)
<TOTAL-ASSETS> 90,860
<CURRENT-LIABILITIES> 43,409
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 47,451
<TOTAL-LIABILITY-AND-EQUITY> 90,860
<SALES> 0
<TOTAL-REVENUES> 8,096
<CGS> 0
<TOTAL-COSTS> 8,791
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 667
<INCOME-PRETAX> (546)
<INCOME-TAX> 0
<INCOME-CONTINUING> (546)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (546)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
