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 March 31, 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 11
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING LIMITED PARTNERSHIP
BALANCE SHEETS
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 12,044 $ 16,764
Accounts Receivable 9,107 21,982
Net investment in direct
financing leases 52,997 88,750
------- -------
TOTAL CURRENT ASSETS 74,148 127,496
------- -------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$179,177 and $170,677 25,500 34,000
------- -------
$ 99,648 $ 161,496
======= =======
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 11
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING LIMITED PARTNERSHIP
BALANCE SHEETS
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 14,125 $ 4,095
Current maturities of long-
term debt 73,751 122,083
Other liabilities 8,050 9,804
------- -------
TOTAL LIABILITIES 95,926 135,982
------- -------
PARTNERS' EQUITY:
General Partners 145 362
Limited Partners 3,577 25,152
------- -------
TOTAL PARTNERS' EQUITY 3,722 25,514
------- -------
$ 99,648 $ 161,496
======= =======
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 11
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 23,814 $ 55,191
Gain (Loss) on Sale
of Equipment - -
------- -------
TOTAL REVENUES 23,814 55,191
------- -------
OPERATING EXPENSES:
Interest 2,316 6,245
Depreciation & Amortization 8,500 33,480
Remarketing Commissions Paid
to Outside Lease Brokers - -
Administrative 12,715 14,100
------- -------
TOTAL OPERATING EXPENSES 23,531 53,825
------- -------
NET INCOME $ 283 $ 1,366
======= =======
NET INCOME ALLOCATED TO:
General Partners $ 3 $ 14
Limited Partners 280 1,352
------- -------
$ 283 $ 1,366
======= =======
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 $ 2 $ 9
Limited Partners $ 2 $ 9
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 11
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENT OF PARTNERS' EQUITY
Three Months Ended March 31, 1997
---------------------------------
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 25,514 $ 362 $ 25,152
DISTRIBUTIONS (22,075) (220) (21,855)
NET INCOME 283 3 280
-------- -------- --------
PARTNERS' EQUITY
End of period $ 3,722 $ 145 $ 3,577
======== ======== ========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 11
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<TABLE>
TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 283 $ 1,366
Adjustments to reconcile net
income (loss) to net cash
provided by operating activities:
Depreciation & amortization 8,500 33,481
(Gain) loss on sale of
equipment under lease - -
Amortization of unearned income (3,181) (9,580)
Changes in assets and liabilities:
Decrease in accounts receivable 12,875
(Increase) in prepaid expenses - (348)
Increase in accounts payable 10,030 6,837
(Decrease)\ Increase in other
liabilities (1,754) 1,718
-------- --------
Net cash provided by
operating activities 26,753 33,474
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 38,934 38,934
Proceeds from sale of equipment
under lease - -
-------- --------
Net cash provided by
investing activities 38,934 38,934
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (22,075) (29,365)
Principal payments of
nonrecourse debt (48,332) (44,403)
-------- --------
Net cash used in
financing activities (70,407) (73,768)
-------- --------
NET (DECREASE) IN CASH & EQUIVALENTS (4,720) (1,360)
CASH AND EQUIVALENTS,
at the beginning of the period 16,764 17,883
------- -------
CASH AND EQUIVALENTS,
at the end of the period $ 12,044 $ 16,523
======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 2,316 $ 6,245
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 11
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TRIUMPHE LEASING LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at March 31, 1997
and the three months ended March 31, 1997, and March 31, 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 March 31, 1997 was
the twenty-ninth 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 7 of 11
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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 March 31, 1997:
Total minimum lease payments to be received $ 51,912
Estimated residual values of leased property 2,500
Less: Unearned income (1,415)
--------
Net investment in leases $ 52,997
========
At March 31, 1997, minimum lease payments for direct
financing and operating leases for the current calendar year that
are expected to be received are $149,928.
Page 8 of 11
<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 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
March 31, 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 $23,814 for the first quarter
of the fiscal year ending December 31, 1997 ("fiscal 1997") from
$55,191 for the first quarter of the fiscal year ended December
31, 1996 ("fiscal 1996"). The decrease in revenues from the
first quarter of fiscal 1996 to the first quarter of fiscal 1997
was primarily due to the reduction in the amount of equipment
under lease.
Operating expenses decreased to $23,531 for the first quarter of
fiscal 1997 from $53,825 for the first quarter 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 quarter of fiscal 1996 to the first quarter 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 March 31, 1997 include undistributed cash
available from operations during the period February 26, 1990 to
March 31, 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 9 of 11
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TRIUMPHE LEASING LIMITED PARTNERSHIP
PART 2 - OTHER INFORMATION
NONE
Page 10 of 11
<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 May 1, 1997 By: /s/ Gerald A. Horwitz
----------------- ------------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date May 1, 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 May 1, 1997 By: /s/ Gerald A. Horwitz
----------------- ------------------------------------
Gerald A. Horwitz
Its: General Partner
Page 11 of 11
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-0997
<PERIOD-END> Mar-31-1997
<CASH> 12,044
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 74,148
<PP&E> 204,677
<DEPRECIATION> 179,177
<TOTAL-ASSETS> 99,648
<CURRENT-LIABILITIES> 95,926
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 99,648
<SALES> 0
<TOTAL-REVENUES> 23,814
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-ESPENSE> 2,316
<INCOME-PRETAX> 283
<INCOME-TAX> 0
<INCOME-CONTINUING> 283
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
