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 June 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 14
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING LIMITED PARTNERSHIP
BALANCE SHEETS
<CAPTION>
June 30, 1997 December 31, 1996
------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 15,724 $ 16,764
Accounts Receivable 8,290 21,982
Net investment in direct
financing leases 15,437 88,750
------- -------
TOTAL CURRENT ASSETS 39,451 127,496
------- -------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$186,825 and $170,677 13,329 34,000
------- -------
$ 52,780 $ 161,496
======= =======
<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>
June 30, 1997 December 31, 1996
------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Accounts payable $ 9,865 $ 4,095
Current maturities of long-
term debt 24,383 122,083
Other liabilities 7,405 9,804
------- -------
TOTAL LIABILITIES 41,653 135,982
------- -------
PARTNERS' EQUITY:
General Partners 219 362
Limited Partners 10,908 25,152
------- -------
TOTAL PARTNERS' EQUITY 11,127 25,514
------- -------
$ 52,780 $ 161,496
======= =======
<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>
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 48,263 $ 106,629
Gain (Loss) on Sale of Equipment 2,486 (2,326)
-------- --------
TOTAL REVENUES 50,749 104,303
-------- --------
OPERATING EXPENSES:
Interest 3,424 11,538
Depreciation & Amortization 20,657 66,961
Administrative 11,587 9,979
-------- --------
TOTAL OPERATING EXPENSES 35,668 88,478
-------- --------
NET INCOME $ 15,081 $ 15,825
======== ========
NET INCOME ALLOCATED TO:
General Partners $ 151 $ 158
Limited Partners 14,930 15,667
-------- --------
$ 15,081 $ 15,825
======== ========
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 $ 103 $ 108
Limited Partners $ 103 $ 108
<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
Three Months Three Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 24,450 $ 51,438
Gain (Loss) on Sale of Equipment 2,486 (2,326)
-------- --------
TOTAL REVENUES 26,936 49,112
-------- --------
OPERATING EXPENSES:
Interest 1,109 5,293
Depreciation & Amortization 12,157 33,480
Administrative (1,128) (4,120)
TOTAL OPERATING EXPENSES 12,138 34,653
NET INCOME $ 14,798 $ 14,459
NET INCOME ALLOCATED TO:
General Partners $ 148 $ 145
Limited Partners 14,650 14,314
-------- --------
$ 14,798 $ 14,459
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 $ 101 $ 98
Limited Partners $ 101 $ 98
<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
Six Months Ended June 30, 1997
------------------------------
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 25,514 $ 362 $ 25,152
DISTRIBUTIONS (29,468) (294) (29,174)
NET INCOME 15,081 151 14,930
-------- ------ --------
PARTNERS' EQUITY
End of period $ 11,127 $ 219 $ 10,908
======== ====== ========
<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>
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 15,081 $ 15,825
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation & amortization 20,657 66,961
(Gain) Loss on sale of
equipment under lease (2,486) 2,326
Amortization of unearned income (4,554) (17,676)
Changes in assets and liabilities:
Decrease in accounts receivable 13,692 -
Increase in prepaid expense - 201
(Decrease) increase in
accounts payable 5,770 (981)
Decrease in other liabilities (2,399) (3,048)
--------- ---------
Net cash provided by
operating activities 45,761 63,608
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 77,867 77,868
Proceeds from sale of
equipment under lease 2,500 -
--------- ---------
Net cash provided by
investing activities 80,367 77,868
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (29,468) (58,730)
Principal payments of
nonrecourse debt (97,700) (89,758)
--------- ---------
Net cash used in
financing activities (127,168) (148,488)
--------- ---------
NET DECREASE IN CASH & EQUIVALENTS (1,040) (7,012)
CASH AND EQUIVALENTS,
at the beginning of the period 16,764 17,883
--------- ---------
CASH AND EQUIVALENTS,
at the end of the period $ 15,724 $ 10,871
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 3,424 $ 11,538
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 14
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TRIUMPHE LEASING LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
Three Months Three Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
[S] [C] [C]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 14,798 $ 14,459
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation & amortization 12,157 33,480
(Gain) Loss on sale of
equipment under lease (2,486) 2,326
Amortization of unearned income (1,374) (8,096)
Changes in assets and liabilities:
Decrease in accounts receivable 817 -
Increase in prepaid expenses - 548
Decrease in accounts payable (4,260) (7,818)
Decrease in other liabilities (645) (4,765)
-------- --------
Net cash provided by
operating activities 19,007 30,134
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 38,934 38,934
Proceeds from sale of equipment
under lease 2,500 -
-------- --------
Net cash provided by
investing activities 41,434 38,934
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (7,393) (29,365)
Principal payments of
nonrecourse debt (49,368) (45,355)
-------- --------
Net cash used in
financing activities (56,761) (74,720)
-------- --------
NET INCREASE (DECREASE)
IN CASH & EQUIVALENTS 3,680 (5,652)
CASH AND EQUIVALENTS,
at the beginning of the period 12,044 16,523
-------- --------
CASH AND EQUIVALENTS,
at the end of the period $ 15,724 $ 10,871
======== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 1,109 $ 5,293
[FN]
See accompanying notes to financial statements (Unaudited)
[/TABLE]
Page 8 of 14
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TRIUMPHE LEASING LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at June 30, 1997
and each of the six and three months ended June 30, 1997, and
June 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 June 30, 1997 was
the thirtieth 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 14
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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 June 30, 1997:
Total minimum lease payments to be received $ 12,978
Estimated residual values of leased property 2,500
Less: Unearned income (41)
--------
Net investment in leases $ 15,437
========
At June 30, 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 10 of 14
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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
June 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 $50,749 for the first two
quarters of the fiscal year ending December 31, 1997 ("fiscal
1997") from $104,303 for the first two quarters of the fiscal
year ended December 31, 1996 ("fiscal 1996"). The decrease in
revenues from the first two quarters of fiscal 1996 to the first
two quarters of fiscal 1997, was primarily due to the reduction
in the amount of equipment under lease.
Operating expenses decreased to $35,668 for the first two
quarters of fiscal 1997 from $88,478 for the first two 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 two quarters of fiscal 1996 to
the first two 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 June 30, 1997 include undistributed cash available
from operations during the period February 26, 1990 to June 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.
Page 11 of 14
<PAGE>
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
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TRIUMPHE LEASING LIMITED PARTNERSHIP
PART II - 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 August 12, 1997 By: /s/ Gerald A. Horwitz
----------------- -----------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date August 12, 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 August 12, 1997 By: /s/ Gerald A. Horwitz
---------------- -----------------------------------
Gerald A. Horwitz
Its: General Partner
Page 14 of 14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Jun-30-1997
<CASH> 15,724
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 39,451
<PP&E> 200,154
<DEPRECIATION> 186,825
<TOTAL-ASSETS> 52,780
<CURRENT-LIABILITIES> 41,653
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 52,780
<SALES> 0
<TOTAL-REVENUES> 50,749
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,424
<INCOME-PRETAX> 15,081
<INCOME-TAX> 0
<INCOME-CONTINUING> 15,081
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
