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, 1997
[ ] 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) (Zip Code)
847-509-1500
(Issuer's telephone number)
(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 13
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING LIMITED PARTNERSHIP
BALANCE SHEETS
<CAPTION>
September 30, 1997 December 31, 1996
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 13,645 $ 16,764
Accounts receivable 3,702 21,982
Net investment in direct
financing leases - 88,750
--------- ---------
TOTAL CURRENT ASSETS 17,347 127,496
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$150,004 and $170,677 9,426 34,000
--------- ---------
$ 26,773 $ 161,496
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 13
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING LIMITED PARTNERSHIP
BALANCE SHEETS
<CAPTION>
September 30, 1997 December 31, 1996
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 9,365 $ 4,095
Current maturities of long-
term debt - 122,083
Other liabilities 4,686 9,804
--------- ---------
TOTAL LIABILITIES 14,051 135,982
--------- ---------
PARTNERS' EQUITY:
General Partners 234 362
Limited Partners 12,488 25,152
--------- ---------
TOTAL PARTNERS' EQUITY 12,722 25,514
--------- ---------
$ 26,773 $ 161,496
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 13
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 71,986 $ 134,700
Gain on Sale of Equipment 4,706 56,558
--------- ---------
TOTAL REVENUES 76,692 191,258
--------- ---------
OPERATING EXPENSES:
Interest 3,734 15,860
Depreciation & Amortization 29,280 84,211
Remarketing Commissions Paid
to Outside Lease Brokers 7,959 215
Administrative 11,651 12,327
--------- ---------
TOTAL OPERATING EXPENSES 52,624 112,613
--------- ---------
NET INCOME $ 24,068 $ 78,645
========= =========
NET INCOME ALLOCATED TO:
General Partners $ 241 $ 786
Limited Partners 23,827 77,859
--------- ---------
$ 24,068 $ 78,645
========= =========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.4682 1.4682
Limited Partners 145.3478 145.3478
INCOME PER WEIGHTED AVERAGE UNIT:
General Partners $ 164 $ 536
Limited Partners $ 164 $ 536
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 13
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
Three Months Three Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 23,723 $ 28,071
Gain on Sale of Equipment 2,097 58,884
--------- ---------
TOTAL REVENUES 25,820 86,955
--------- ---------
OPERATING EXPENSES:
Interest 309 4,322
Depreciation & Amortization 8,500 17,251
Remarketing Commissions Paid
to Outside Lease Brokers 8,000 215
Administrative 23 2,348
--------- ---------
TOTAL OPERATING EXPENSES 16,832 24,136
--------- ---------
NET INCOME $ 8,988 $ 62,819
========= =========
NET INCOME ALLOCATED TO:
General Partners $ 90 $ 628
Limited Partners 8,898 62,191
--------- ---------
$ 8,988 $ 62,819
========= =========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.4682 1.4682
Limited Partners 145.3478 145.3478
INCOME PER WEIGHTED AVERAGE UNIT:
General Partners $ 61 $ 428
Limited Partners $ 61 $ 428
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 13
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENT OF PARTNERS' EQUITY
Nine Months Ended September 30, 1997
------------------------------------
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 25,514 $ 362 $ 25,152
DISTRIBUTIONS (36,860) (369) (36,491)
NET INCOME 24,068 241 23,827
---------- -------- ----------
PARTNERS' EQUITY
End of period $ 12,722 $ 234 $ 12,488
========== ======== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 13
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 24,068 $ 78,645
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation & amortization 29,280 84,211
Gain on sale of
equipment under lease (4,706) (56,558)
Amortization of unearned income (4,595) (24,214)
Changes in assets and liabilities:
Decrease in accounts receivable 18,280 -
(Decrease) Increase in
accounts payable 5,270 (2,252)
(Decrease) in other liabilities (5,118) (2,125)
--------- ----------
Net cash provided by
operating activities 62,479 77,707
--------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 90,845 116,802
Proceeds from sale of
equipment under lease 2,500 59,433
--------- ----------
Net cash provided by
investing activities 93,345 176,235
--------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (36,860) (88,095)
Principal payments of
nonrecourse debt (122,083) (136,084)
---------- ----------
Net cash used in
financing activities (158,943) (224,179)
---------- ----------
NET (DECREASE) INCREASE IN
CASH & EQUIVALENTS (3,119) 29,763
CASH AND EQUIVALENTS,
at the beginning of the period 16,764 17,883
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 13,645 $ 47,646
========== ==========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 3,734 $ 15,860
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 13
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
Three Months Three Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,988 $ 62,819
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation & amortization 8,500 17,251
(Loss) Gain on sale of
equipment under lease (2,097) (58,884)
Amortization of unearned income (41) (6,538)
Changes in assets and liabilities:
Decrease in accounts receivable 4,588 -
(Decrease) in accounts payable (500) (1,271)
(Decrease) Increase in
other liabilities (2,719) 722
---------- ----------
Net cash provided by
operating activities 16,719 14,099
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 12,978 38,934
Proceeds from sale of
equipment under lease - 59,433
---------- ----------
Net cash provided by
investing activities 12,978 98,367
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (7,393) (29,365)
Principal payments of
nonrecourse debt (24,383) (46,326)
---------- ----------
Net cash used in
financing activities (31,776) (75,691)
---------- ----------
NET (DECREASE) INCREASE IN
CASH & EQUIVALENTS (2,079) 36,775
CASH AND EQUIVALENTS,
at the beginning of the period 15,724 10,871
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 13,645 $ 47,646
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 309 $ 4,322
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 8 of 13
<PAGE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at September 30,
1997 and each of the nine and three months ended September 30,
1997, and September 30, 1996, 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 those dates and the results of
operations 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, 1997
was the thirty-first 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 year. 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 13
<PAGE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - COMMITMENTS
At September 30, 1997, minimum lease payments for operating
leases for the current calendar year that are expected to be
received are $149,928.
Page 10 of 13
<PAGE>
ITEM 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 1990. As of February 26, 1992 the
partnership ceased the sale of Investor Limited Partner Units. A
total of $2,906,960 in units had been sold through February 26,
1992. At September 30, 1997 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 $76,692 for the first three
quarters of the fiscal year ending December 31, 1997 ("fiscal
1997") from $191,258 for the first three quarters of the fiscal
year ended December 31, 1996 ("fiscal 1996"). The decrease in
revenues from the first three quarters of fiscal 1996 to the
first three quarters of fiscal 1997, was primarily due to the
reduction in the amount of equipment under lease. In addition,
there was a gain on the sale of equipment of $4,706 for the nine
months ended September 30, 1997, compared to a gain on the sale
of equipment of $56,558 for the nine months ended September 30,
1996.
Operating expenses decreased to $52,624 for the first three
quarters of fiscal 1997 from $112,613 for the first three
quarters of fiscal 1996. Operating expenses consist of interest
on nonrecourse financing of equipment purchased, depreciation on
equipment, administrative expenses, and payments to a related
party for administrative cost reimbursements. The decrease in
operating expenses from the first three quarters of fiscal 1996
to the first three quarters of fiscal 1997 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, 1997 include undistributed cash
available from operations during the period February 26, 1990 to
September 30, 1997.
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.
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 11 of 13
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TRIUMPHE LEASING LIMITED PARTNERSHIP
PART II - OTHER INFORMATION
NONE
Page 12 of 13
<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 October 31, 1997 By: /s/ Gerald A. Horwitz
------------------ -----------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date October 31, 1997 By: /s/ Jerry L. Schwartz
------------------ -----------------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer of the
Corporate General Partner
(Principal Financial and
Accounting Officer)
Date October 31, 1997 By: /s/ Gerald A. Horwitz
------------------ -----------------------------------
Gerald A. Horwitz
Its: General Partner
Page 13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Sep-30-1997
<CASH> 13,645
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 17,347
<PP&E> 159,430
<DEPRECIATION> 150,004
<TOTAL-ASSETS> 26,773
<CURRENT-LIABILITIES> 14,051
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 26,773
<SALES> 0
<TOTAL-REVENUES> 76,692
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,734
<INCOME-PRETAX> 24,068
<INCOME-TAX> 0
<INCOME-CONTINUING> 24,068
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
