SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE OF 1934
For the quarterly period ended September 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE EXCHANGE ACT.
For the transition period from ____________to ____________
Commission File Number: 0-19074
TRIUMPHE LEASING LIMITED PARTNERSHIP
(Exact name of small business issuer
as specified in its charter)
Illinois 36-3673459
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
630 Dundee Road, Suite 345, Northbrook, Illinois 60062
(Address of principal executive offices)
847-509-1500
(Issuer's telephone number, including area code)
_______________________________________________________
(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer: (1) filed all reports required to
be filed by Sections 13 or 15(d) of the Exchange Act during
the past 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.
[X]Yes [ ]No
Page 1 of 14
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING LIMITED PARTNERSHIP
BALANCE SHEETS
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 47,646 $ 17,883
Net investment in direct
financing leases 122,784 126,621
---------- ----------
TOTAL CURRENT ASSETS 170,430 144,504
---------- ----------
COMPUTER EQUIPMENT ON OPERATING LEASES
less accumulated depreciation of
$158,548 and $198,351 47,040 134,126
---------- ----------
OTHER:
Net investment in direct
financing leases - 88,751
---------- ----------
TOTAL OTHER ASSETS - 88,751
---------- ----------
$ 217,470 $ 367,381
========== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 14
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING LIMITED PARTNERSHIP
BALANCE SHEETS
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 5,781 $ 8,033
Current maturities of long-
term debt 169,402 183,403
Other liabilities 10,885 13,010
---------- ---------
TOTAL CURRENT LIABILITES 186,068 204,446
---------- ---------
LONG TERM DEBT,
less current maturities - 122,083
---------- ----------
TOTAL LIABILITIES 186,068 326,529
---------- ----------
PARTNERS' EQUITY:
General Partners 414 509
Limited Partners 30,988 40,343
---------- ----------
TOTAL PARTNERS' EQUITY 31,402 40,852
---------- ----------
$ 217,470 $ 367,381
========== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 14
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1996 September 30, 1995
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 134,700 $ 179,421
Loss on sale of equipment 56,558 (47,734)
-------- ---------
TOTAL REVENUES 191,258 131,687
-------- ---------
OPERATING EXPENSES:
Interest 15,860 35,008
Depreciation & Amortization 84,211 159,867
Remarketing Commissions Paid
to Outside Lease Brokers 215 8,541
Administrative 12,327 46,244
-------- ---------
TOTAL OPERATING EXPENSES 112,613 249,660
-------- ---------
NET INCOME (LOSS) $ 78,645 $(117,973)
======== =========
NET INCOME (LOSS) ALLOCATED TO
General partners $ 786 $ (1,180)
Limited partners 77,859 (116,793)
-------- ---------
$ 78,645 $(117,973)
======== =========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.4680 1.4680
Limited Partners 145.3480 145.3480
INCOME (LOSS) PER WEIGHTED AVERAGE UNIT:
General Partners $536 $(804)
Limited Partners $536 $(804)
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 14
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1996 September 30, 1995
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 28,071 $ 68,109
Loss on sale of equipment 58,884 (13,242)
-------- --------
TOTAL REVENUES 86,955 54,867
-------- --------
OPERATING EXPENSES:
Interest 4,322 8,119
Depreciation & Amortization 17,251 38,667
Remarketing Commissions Paid
to Outside Lease Brokers 215 2,760
Administrative 2,348 7,211
-------- --------
TOTAL OPERATING EXPENSES 24,136 56,757
-------- --------
NET INCOME (LOSS) $ 62,819 $ (1,890)
======== ========
NET INCOME (LOSS) ALLOCATED TO
General partners 628 (19)
Limited partners 62,191 (1,871)
-------- --------
62,819 (1,890)
======== ========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.4680 1.4680
Limited Partners 145.3480 145.3480
INCOME (LOSS) PER WEIGHTED AVERAGE UNIT:
General Partners $ 428 $(13)
Limited Partners $ 428 $(13)
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 14
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENT OF PARTNERS' EQUITY
Nine Months Ended September 30, 1996
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 40,852 $ 509 $ 40,343
DISTRIBUTIONS (88,095) (881) (87,214)
NET INCOME 78,645 786 77,859
--------- -------- ---------
PARTNERS' EQUITY
End of period $ 31,402 $ 414 $ 30,988
========= ======== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 14
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
<CAPTION>
Nine Months Nine Months
Ended Ended
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 78,645 $(117,973)
Adjustments to reconcile
net income (loss) to net cash
provided by operating activities:
Depreciation & amortization 84,211 159,867
(Gain) loss on sale of
equipment under lease (56,558) 47,734
Amortization of unearned income (24,214) (40,663)
Changes in assets and liabilities:
Increase in prepaid expenses - (248)
(Decrease) Increase in
accounts payable (2,252) 6,390
(Decrease) Increase in
other liabilities (2,125) 1,234
-------- ---------
Net cash provided by 77,707 56,341
operating activities -------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received
under direct financing leases 116,802 208,307
Proceeds from sale of equipment
under lease 59,433 51,146
-------- ---------
Net cash provided by 176,235 259,453
investing activities -------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (88,095) (124,847)
Proceeds from issuance of debt - 308,593
Principal payments of
nonrecourse debt (136,084) (494,576)
--------- ---------
Net cash used in (224,179) (310,830)
financing activities --------- ---------
NET INCREASE IN CASH AND EQUIVALENTS: 29,763 4,964
CASH AND EQUIVALENTS,
at the beginning of the period 17,883 21,920
--------- --------
CASH AND EQUIVALENTS,
at the end of the period $ 47,646 $ 26,884
======== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 15,860 $ 35,008
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 14
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ 62,819 $ (1,890)
Adjustments to reconcile
net (loss) income to net cash
provided by operating activities:
Depreciation & amortization 17,251 38,667
(Gain) loss on sale of
equipment under lease (58,884) 13,242
Amortization of unearned income (6,538) (12,745)
Changes in assets and liabilities:
Decrease in prepaid expenses - 250
(Decrease) in accounts payable (1,271) (14,990)
Increase in other liabilities 722 7,088
-------- --------
Net cash provided by 14,099 29,622
operating activities -------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received
under direct financing leases 38,934 43,929
Proceeds from sale of equipment
under lease 59,433 15,851
-------- --------
Net cash provided by 98,367 59,780
investing activities -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (29,365) (36,758)
Principal payments of
nonrecourse debt (46,326) (47,525)
--------- ---------
Net cash used in (75,691) (84,283)
financing activities --------- ---------
NET INCREASE IN CASH AND EQUIVALENTS: 36,775 5,119
CASH AND EQUIVALENTS,
at the beginning of the period 10,015 21,765
--------- --------
CASH AND EQUIVALENTS,
at the end of the period $ 47,646 $ 26,884
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 4,322 8,119
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 8 of 14
<PAGE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at September 30,
1996 and the nine and three months ended September 30, 1996, and
September 30, 1995, is unaudited, and in the opinion of the
partnership, reflects all adjustments (which include only normal
recurring adjustments) necessary for the fair presentation of the
financial position as of that date and the results of operation
for those periods.
The results for interim periods are not necessarily
indicative of trends or of results to be expected for a full
year.
NOTE 2 - ORGANIZATION
The partnership was formed on November 9, 1989, under the
Revised Uniform Limited Partnership Act of the State of Illinois.
The partnership's business is to acquire, own, lease, maintain,
manage and sell equipment. The quarter ended September 30, 1996
was the twenty-seventh quarter of operations.
NOTE 3 - DESCRIPTION OF LEASING ARRANGEMENTS
The partnership's leasing operations consist principally of
leased equipment which it has acquired from third party
independent lease brokers. It is the partnership's intention to
re-lease such equipment to the existing lessee, lease such
equipment to a new lessee, or to sell the equipment at the end of
each lease. The leases expire over the next three years. The
cost of each lease includes an equity investment plus any non-
recourse loans obtained to finance the purchase.
NOTE 4 - EQUIPMENT
Equipment is recorded at cost. Depreciation is computed
using the double declining balance method over the estimated
useful lives of the assets (five years).
Page 9 of 14
<PAGE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - NET INVESTMENT IN LEASES
The following lists the components of the net
investment in leases as of September 30, 1996:
Total minimum lease payments to be received $ 129,780
Estimated residual values of leased property 2,500
Less: Unearned income (9,496)
----------
Net investment in leases $ 122,784
==========
At September 30, 1996, minimum lease payments for direct
financing and operating leases for each of the three succeeding
calendar years are as follows:
YEAR AMOUNT
1996 $ 291,351
1997 149,928
Page 10 of 14
<PAGE>
PART 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
The partnership commenced the offering of units and began
operations on February 26, 1990, and commenced the acquisition of
equipment in April of 1990. As of February 26, 1992 the
partnership ceased the sale of Investor Limited Partner Units. A
total of $2,906,960 in units has been sold through February 26,
1992. At September 30, 1996 the partnership had acquired
$16,685,020 of leased equipment with an equity investment of
$2,452,449 and nonrecourse bank borrowing of $14,232,571.
OPERATIONS
Revenues from leasing decreased to $134,700 for the first three
quarters of the fiscal year ending December 31, 1996 ("fiscal
1996") from $179,421 for the first three quarters of the fiscal
year ended December 31, 1995 ("fiscal 1995"). The decrease in
revenues from the first three quarters of fiscal 1995 to the
first three quarters of fiscal 1996 was primarily due to the
reduction in the amount of equipment under lease. And in
addition, there was a loss on the sale of equipment of $47,734
for the nine months ended September 30, 1995, compared to a gain
on the sale of equipment of $56,558 for the nine months ended
September 30, 1996.
Operating expenses decreased to $112,613 for the first three
quarters of fiscal 1996 from $249,660 for the first three
quarters of fiscal 1995. Operating expenses consist of interest
on nonrecourse financing of equipment purchased, depreciation on
equipment, amortization of organization expenses, administrative
expenses, and payments to a related party for administrative cost
reimbursements. The decrease in operating expenses from the
first three quarters of fiscal 1995 to the first three quarters
of fiscal 1996 resulted primarily from the reduction of equipment
on lease.
The partnership expects continued decreases in operating revenues
due to the expiration of leases. Thus, since the partnership
does not plan to invest in additional equipment, future results
will be based on the collection of rents on existing and extended
leases, disposition of equipment from expired leases, and
interest earned on short-term money market investments.
LIQUIDITY AND CAPITAL RESOURCES
Liquid assets of the partnership increase principally from cash
flows from operations. Cash and cash equivalents of the
partnership at September 30, 1996 include undistributed cash
available from operations during the period February 26, 1990 to
September 30, 1996.
The partnership has a program which provides for the temporary
investment of cash in various short-term money market instruments
pending disbursement for operations or distributions to partners.
Page 11 of 14
<PAGE>
PART 2 (CONTINUED)
The partnership generally financed the purchase of equipment by
the use of loans in an amount in excess of 50% of the purchase
price thereof. All of the loans incurred were nonrecourse to
the partnership and were or will be fully amortized by the
monthly rental payments due to the partnership under related
leases.
The partnership maintains, to the extent practicable, a working
capital and contingency reserve in an amount not to exceed 1%
of the gross proceeds from the offering of Units, subject to
business and distribution requirements. Such amount, together
with any amount reserved from operations, will be available
to meet working capital requirements and to provide for
contingencies.
Page 12 of 14
<PAGE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
PART 2 - OTHER INFORMATION
NONE
Page 13 of 14
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act,
the Registrant has caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
TRIUMPHE LEASING LIMITED PARTNERSHIP
By: TL GENERAL CORP.,
Its: General Partner
Date November 6, 1996 By: /s/ Gerald A. Horwitz
------------------------------
Gerald A. Horwitz, President
of the Corprate General Partner
(Principal Executive Officer)
Date November 6, 1996 By: /s/ Jerry L. Schwartz
------------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer of the
Corporate General Partner
(Principal Financial and
Accounting Officer)
Date November 6, 1996 By: /s/ Gerald A. Horwitz
------------------------------
Gerald A. Horwitz
Its: General Partner
Page 14 of 14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Sep-30-1996
<CASH> 47,646
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 170,430
<PP&E> 205,588
<DEPRECIATION> 158,548
<TOTAL-ASSETS> 217,470
<CURRENT-LIABILITIES> 186,068
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 217,470
<SALES> 0
<TOTAL-REVENUES> 191,258
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,860
<INCOME-PRETAX> 78,645
<INCOME-TAX> 0
<INCOME-CONTINUING> 78,645
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
