UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Under Section 13
or 15 (d) of the Securities
Exchange Act of 1934
-----------------------------------
For the Quarter Ended
June 30, 1996 Commission File Number 0-19466
- ---------------------- -------------------------------
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 36-3684373
- ------------------ -----------------------------
State or other IRS Employer Identification
jurisdiction of Number
incorporation or
organization
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
- --------------------------------- ------------------------------
Address of principal City, State, Zip Code
executive offices
Registrant's telephone number: (847) 240-6200
-----------------------------
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.
(1) Yes x No
--- ---
(2) Yes x No
--- ---
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
FORM 10-Q
---------
FOR THE QUARTER ENDED June 30, 1996
-----------------------------------
PART I - FINANCIAL INFORMATION
Item 1.
- -------
Index to Financial Statements
Balance Sheets
June 30, 1996 (unaudited)
December 31, 1995
Statements of Revenue and Expenses (unaudited)
For the three months ended June 30, 1996
For the three months ended June 30, 1995
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Statements of Changes in Partners' Equity
For the six months ended June 30, 1996
(unaudited)
Statements of Cash Flows (unaudited)
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Notes to Financial Statements (unaudited)
Item 2.
- -------
Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II - OTHER INFORMATION
Items 1-6.
- ----------
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
BALANCE SHEETS
--------------
June 30, 1996 - Unaudited
-------------------------
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
ASSETS
- ------
Cash and cash equivalents $1,474,119 $1,514,500 $2,988,619
Investments in commercial
lease paper, net 16,219 190,713 206,932
Installment contract
receivable, net 76,161 373,165 449,326
Net investment in direct
financing leases 70,064 7,967,334 8,037,398
Diverted and other assets,
net 760,153 3,724,527 4,484,680
---------- ----------- -----------
$2,396,716 $13,770,239 $16,166,955
========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 29,328 $ 173,786 $ 203,114
Lessee rental deposits 178,083 1,012,278 1,190,361
Due to management company 130 705 835
---------- ----------- -----------
Total liabilities 207,541 1,186,769 1,394,310
Total partners' equity 2,189,175 12,583,470 14,772,645
---------- ----------- -----------
$2,396,716 $13,770,239 $16,166,955
========== =========== ===========
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
BALANCE SHEETS
--------------
December 31, 1996 - Unaudited
-----------------------------
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
ASSETS
- ------
Cash and cash equivalents $1,219,379 $ 2,056,790 $3,276,169
Investments in commercial
lease paper, net 22,024 261,396 283,420
Installment contract
receivable, net 109,334 535,706 645,040
Net investment in direct
financing leases 250,405 10,893,937 11,144,342
Diverted and other assets,
net 760,153 3,724,527 4,484,680
Restricted cash 182,488 894,135 1,076,623
Organization and acquisition
costs, net of accumulated
amortization 25,620 125,528 151,148
---------- ----------- -----------
$2,569,403 $18,492,019 $21,061,422
========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 46,708 $ 281,857 $ 328,565
Lessee rental deposits 173,802 996,494 1,170,296
Due to management company 64 28,530 28,594
---------- ----------- -----------
Total liabilities 220,574 1,306,881 1,527,455
Total partners' equity 2,348,829 17,185,138 19,533,967
---------- ----------- -----------
$2,569,403 $18,492,019 $21,061,422
========== =========== ===========
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1996
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
Revenue:
Lease income (loss) $ (12,213) $ 223,061 $ 210,848
Interest income 36,625 206,714 243,339
---------- ---------- ----------
24,412 429,775 454,187
---------- ---------- ----------
Expenses:
Amortization of
organization and
equipment acquisition
costs 7,043 34,507 41,550
Management fees-New Era 46,293 305,367 351,660
General Partner's
expense reimbursement 9,394 46,029 55,423
Professional fees 16,246 86,584 102,830
Other operating expenses 1,250 6,562 7,812
Provision for lease losses - 175,000 175,000
---------- ---------- ----------
80,226 654,049 734,275
---------- ---------- ----------
Net loss $ (55,814) $ (224,274) $ (280,088)
========== ========== ==========
Net loss -
General Partner $ (558) $ (2,243) $ (2,801)
========== ========== ==========
Net loss -
Limited Partners $ (55,256) $ (222,031) $ (277,287)
========== ========== ==========
Net loss per Limited
Partnership Unit $(1.63) $ (1.34)
====== =======
Weighted average number
of Limited Partnership Units
outstanding 33,858 165,901
====== =======
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1995
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
Revenue:
Lease income $ 41,806 $ 659,150 $ 700,956
Interest income 19,748 112,363 132,111
--------- ---------- ----------
61,554 771,513 833,067
--------- ---------- ----------
Expenses:
Amortization of
organization
and equipment
acquisition costs 51,677 253,199 304,876
Management fees-New Era 44,148 492,356 536,504
General Partner's
expense reimbursement 23,141 113,383 136,524
Professional fees 32,693 164,932 197,625
Other operating expenses 13,530 75,161 88,691
--------- ---------- ----------
165,189 1,099,031 1,264,220
--------- ---------- ----------
Net loss $(103,635) $ (327,518) $ (431,153)
========= ========== ==========
Net loss -
General Partner $ (1,036) $ (3,275) $ (4,311)
========= ========== ==========
Net loss -
Limited Partners $(102,599) $ (324,243) $ (426,842)
========= ========== ==========
Net loss per Limited
Partnership Unit $(3.03) $ (1.95)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 33,858 165,901
====== =======
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1996
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
Revenue:
Lease income (loss) $ (1,362) $ 611,177 $ 609,815
Interest income 45,521 262,292 307,813
--------- ---------- ----------
44,159 873,469 917,628
--------- ---------- ----------
Expenses:
Amortization of
organization and
equipment acquisition
costs 25,620 125,528 151,148
Management fees-New Era 93,658 692,849 786,507
General Partner's
expense reimbursement 40,367 197,788 238,155
Professional fees 38,747 199,849 238,596
Other operating expenses 5,421 40,604 46,025
Provision for lease losses - 175,000 175,000
--------- ---------- ----------
203,813 1,431,618 1,635,431
--------- ---------- ----------
Net loss $(159,654) $ (558,149) $ (717,803)
========= ========== ==========
Net loss -
General Partner $ (1,597) $ (5,581) $ (7,178)
========= ========== ==========
Net loss -
Limited Partners $(158,057) $ (552,568) $ (710,625)
========= ========== ==========
Net loss per Limited
Partnership Unit $(4.67) $ (3.33)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 33,858 165,901
====== =======
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1995
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
Revenue:
Lease income $ 97,560 $1,392,794 $1,490,354
Interest income 32,378 191,974 224,352
-------- ---------- ----------
129,938 1,584,768 1,714,706
-------- ---------- ----------
Expenses:
Amortization of
organization and
equipment acquisition
costs 103,353 506,398 609,751
Management fees-New Era 98,007 1,023,596 1,121,603
General Partner's
expense reimbursement 33,941 166,298 200,239
Professional fees 52,364 262,577 314,941
Other operating expenses 22,989 131,198 154,187
-------- ---------- ----------
310,654 2,090,067 2,400,721
-------- ---------- ----------
Net loss $(180,716) $ (505,299) $ (686,015)
========= ========== ==========
Net loss -
General Partner $ (1,807) $ (5,053) $ (6,860)
========= ========== ==========
Net loss -
Limited Partners $(178,909) $ (500,246) $ (679,155)
========= ========== ==========
Net loss per Limited
Partnership Unit $(5.28) $ (3.02)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 33,858 165,901
====== =======
See accompanying notes to financial statements.
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
STATEMENT OF CHANGES IN PARTNERS' EQUITY
----------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
--------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1995 $(668,826)* $2,419,615 $17,783,178 $19,533,967
Distributions to partners
(Note 3) (24,064) - (4,019,455) (4,043,519)
Net loss (7,178) (158,057) (552,568) (717,803)
Allocation of General
Partner's equity 700,068 (72,383) (627,685) -
--------- ---------- ----------- -----------
Balance, June 30, 1996 $ - $2,189,175 $12,583,470 $14,772,645
========= ========== =========== ===========
<FN>
* Balance as previously reported was $0 due to allocation of $70,786 and $598,040 to
Liquidating and Continuing Limited Partners' Equity, respectively.
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
For the six months ended June 30, 1996
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
------------ ----------- ----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (159,654) $ (558,149) $ (717,803)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 25,620 125,528 151,148
Provision for lease losses - 175,000 175,000
Changes in assets and liabilities:
Accounts payable and accrued
expenses (17,380) (108,071) (125,451)
Lessee rental deposits 4,281 15,784 20,065
Due to management company 66 (27,825) (27,759)
----------- ---------- -----------
(147,067) (377,733) (524,800)
----------- ---------- -----------
Cash flows from investing activities:
Purchases of lease receivables - (919,590) (919,590)
Principal collections on leases 180,341 2,739,262 2,919,603
Sale of leases (Note 4) - 931,931 931,931
Repayments of commercial lease paper 5,805 70,683 76,488
Release of restricted cash 182,488 894,135 1,076,623
Principal collections on
installment contract receivable 33,173 162,541 195,714
----------- ---------- -----------
401,807 3,878,962 4,280,769
----------- ---------- -----------
Cash flows from financing activities:
Distributions to Limited Partners (a) - (4,019,455) (4,019,455)
Distributions to General Partner - (24,064) (24,064)
----------- ---------- -----------
- (4,043,519) (4,043,519)
----------- ---------- -----------
Net increase (decrease) in
cash and cash equivalents 254,740 (542,290) (287,550)
----------- ---------- -----------
Cash and cash equivalents:
Beginning of year 1,219,379 2,056,790 3,276,169
----------- ---------- -----------
End of second quarter $1,474,119 $ 1,514,500 $ 2,988,619
=========== =========== ===========
<FN>
(a) Distributions during the period were $0 per unit for Liquidating Limited Partners and $24.23 per
unit for Continuing Limited Partners.
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
For the six months ended June 30, 1995
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
------------ ----------- ----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (180,716) $ (505,299) $ (686,015)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 103,353 506,398 609,751
Changes in assets and liabilities:
Accounts payable and accrued
expenses (16,846) (133,222) (150,068)
Lessee rental deposits (20,956) (35,483) (56,439)
Due to management company (16) (16,024) (16,040)
----------- ---------- -----------
(115,181) (183,630) (298,811)
----------- ---------- -----------
Cash flows from investing activities:
Purchases of lease receivables - (4,358,603) (4,358,603)
Principal collections on leases 612,485 5,940,706 6,553,191
Sale of leases (Note 4) 21,770 1,294,988 1,316,758
Distribution of diverted and other assets 281,237 1,377,980 1,659,217
Distribution of Datronic assets 22,781 111,621 134,402
Repayments of commercial lease paper 11,605 124,470 136,075
Principal collections on
installment contracts receivable 30,029 147,132 177,161
----------- ---------- -----------
979,907 4,638,294 5,618,201
----------- ---------- -----------
Cash flows from financing activities:
Distributions to Limited Partners (a) (399,862) (5,169,790) (5,569,652)
Distributions to General Partner (9,681) (108,721) (118,402)
----------- ---------- -----------
(409,543) (5,278,511) (5,688,054)
----------- ---------- -----------
Net increase (decrease) in cash and
cash equivalents 455,183 (823,847) (368,664)
----------- ---------- -----------
Cash and cash equivalents:
Beginning of year 941,564 4,416,807 5,358,371
----------- ---------- -----------
End of second quarter $1,396,747 $3,592,960 $4,989,707
========== ========== ==========
<FN>
(a)Distributions during the period were $11.81 per unit for Liquidating Limited Partners and $31.16
per unit for Continuing Limited Partners.
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE> <PAGE>
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
----------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
June 30, 1996
-------------
(Unaudited)
NOTE 1 - ORGANIZATION:
- ----------------------
Datronic Equipment Income Fund XIX, L.P., a Delaware Limited
Partnership (the "Partnership"), was formed on December 22, 1989
for the purpose of acquiring and leasing both high-and
low-technology equipment. Reference is made to Notes 4, 6, 7 and
8 to the Partnership's financial statements included in the 1995
Form 10-K for a discussion of the alleged diversion of Partnership
assets in 1991 and 1992 and the subsequent litigation and
settlement, change in general partner, new classes of limited
partners established and amendments to the Partnership Agreement
which occurred.
NOTE 2 - BASIS OF FINANCIAL STATEMENTS:
- ---------------------------------------
The accompanying financial statements should be read in conjunction
with the Partnership's financial statements included in the 1995
Form 10-K. The financial information furnished herein is unaudited
but in the opinion of Management includes all adjustments necessary
(all of which are normal recurring adjustments) for a fair
presentation of financial condition and results of operations. See
Note 3 to the Partnership's financial statements included in the
1995 Form 10-K.
NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:
- -------------------------------------------
Distributions to Liquidating Limited Partners were suspended after
payment of the October 1, 1995 distribution. Distributions to
Continuing Limited Partners were reduced to an annual rate of 9%
effective with the February 1, 1996 distribution. The Partnership
will enter its Liquidation Phase in August 1996. Accordingly,
Continuing Limited Partners received their last reduced Target
Distribution on July 1, 1996 and will receive their first
Liquidating Distribution on October 1, 1996.
NOTE 4 - LEASE PORTFOLIO SALES:
- -------------------------------
During the six months ended June 30, 1996, the Partnership and
Datronic Equipment Income Fund XX, L.P. each entered into separate
lease purchase agreements with Linc Anthem Corporation to sell
equipment leases at a discount rate of 11.75% which resulted in
aggregate net proceeds of approximately $1.5 million. The
Partnership's proceeds were approximately $932,000. Of this
amount, all was allocable to Continuing Limited Partners and
approximately $920,000 has been invested in new leases.
During the six months ended June 30, 1995, the Partnership,
Datronic Equipment Income Fund XVIII, L.P., Datronic Equipment
Income Fund XX, L.P., and Datronic Finance Income Fund I, L.P. each
entered into separate lease purchase agreements with Southern
Pacific Thrift & Loan Association to sell equipment leases at
discount rates ranging from 10.75% to 11.75% which resulted in
aggregate proceeds of approximately $4.8 million. The
Partnership's proceeds were approximately $1.3 million. Of this
amount, approximately all were allocable to Continuing Limited
Partners and invested in new leases.
<PAGE>
PART I
- ------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
- -----------------------------------------------------------
The following discussion and analysis of liquidity and capital
resources covers material changes in the Partnership's financial
condition from December 31, 1995 through June 30, 1996. The
discussion and analysis of results of operations is for the three
and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995.
Financial Condition, Liquidity and Capital Resources
- ----------------------------------------------------
During the six months ended June 30, 1996, Partnership assets
continued to be converted to cash in order to, generally, pay
Partnership operating expenses, acquire new leases for the
Continuing Limited Partners and make distributions to the
Continuing Limited Partners and General Partner.
Investment in commercial lease paper, net and installment contract
receivable, net decreased an aggregate of approximately $272,000
during the six months ended June 30, 1996 due to scheduled
principal collections.
Net investment in direct financing leases decreased approximately
$3,107,000 during the six months ended June 30, 1996. This
decrease is primarily attributable to principal collections of
approximately $2,920,000 and sales of leases in the amount of
approximately $932,000 (see Note 4 to the financial statements
included in Item 1) partially offset by investments in new leases
for the Continuing Limited Partners of approximately $920,000.
Restricted cash of approximately $1,077,000 has been reclassed to
cash and cash equivalents due to the removal of claims on such cash
(see Part II, Item 1 - Legal Proceedings). This cash was repaid to
the Partnership with interest in June 1996.
Accounts payable and accrued expenses decreased approximately
$125,000 during the six months ended June 30, 1996 primarily due to
payment of legal fees and sales and use taxes.
Lessee rental deposits increased approximately $20,000 during the
six months ended June 30, 1996 primarily due to the recording of an
accrual for the return of lease overpayments to lessees, partially
offset by the return of deposits related to the declining lease
portfolio.
In the aggregate, partners' equity decreased approximately $4.8
million during the six months ended June 30, 1996 due to a net loss
of approximately $718,000 and distributions to Continuing Limited
Partners and the General Partner of approximately $4,044,000.
During the six months ended June 30, 1996, the Partnership's
operating activities resulted in a use of approximately $525,000 of
cash. This was due principally to a net loss of approximately
$718,000 and a net decrease in accounts payable, accrued expenses
and security deposits of approximately $125,000 reduced by non-cash
expenses relating to amortization of approximately $151,000 and a
lease loss provision of $175,000. During the period, cash flows
from investing activities aggregated approximately $4,281,000
relating principally to principal collections on leases of
approximately $2,920,000, sales of leases of approximately $932,000
net of purchases of lease receivables for the benefit of the
Continuing Limited Partners of approximately $920,000 and the
availability of cash which was previously restricted of
approximately $1,077,000. Cash flows used for financing activities
of approximately $4,044,000, consisted of distributions to
Continuing Limited Partners approximately of $4,020,000 and the
general partner of approximately $24,000.
The Partnership's principal sources of liquidity on both a
long-term and short-term basis are cash on hand and receipts under
leases, commercial lease paper and an installment contract
receivable. In addition, the Partnership's sources of liquidity on
a long-term basis are expected to include proceeds from the sale of
diverted and other assets and, possibly, portions of the
Partnership's lease portfolio which may be sold in bulk.
Management believes that its sources of liquidity in the short and
long-term are sufficient to meet its operating cash obligations.
Distributions to Liquidating Limited Partners were suspended after
the October 1, 1995 distribution and Target Distributions to the
Continuing Limited Partners were reduced to an annual rate of 9%
effective with the February 1, 1996 distribution. The Partnership
will enter its Liquidating Phase in August 1996. Accordingly,
Continuing Limited partners received their last reduced Target
Distribution on July 1, 1996 and will receive their first
Liquidating Distribution on October 1, 1996. Distributions to the
Liquidating Limited Partners were suspended and Target
Distributions to the Continuing Limited Partners were reduced to
ensure that sufficient cash will be available to pursue recoveries
under pending litigation with the Partnership's former accountants
and others and to liquidate the Partnership in an orderly manner.
Lease reinvestment activity is prohibited during the liquidating
phase and in any period in which full Target Distributions have not
been paid.
The continued operation and eventual liquidation of the Partnership
involves numerous complex issues which have to be resolved. These
issues relate to the timing and realizability of lease-related
assets, diverted and other assets, Datronic assets, litigation and
the liquidation of the other Datronic Partnerships (see Notes 4, 6
and 9 to the financial statements included in the 1995 Form 10-K).
These issues make it difficult to predict the time and costs
necessary to operate and liquidate the Partnership in an orderly
manner. As a result of these uncertainties, it is not possible to
predict the timing and availability of cash for future
distributions to Limited Partners. However, it is likely that the
amount of future distributions, if any, to the Limited Partners
will ultimately be significantly less than the amount of Partner's
Equity reflected in the June 30, 1996 Balance Sheets (see financial
statements included in Item 1).
Results of Operations
- ---------------------
Lease income decreased approximately $490,000 and $881,000 for the
three and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995. These decreases are primarily due
to the declining lease portfolios and a $125,000 provision in the
second quarter of 1996 to provide for the return of lessee
overpayments previously recorded as lease income.
Interest income increased approximately $110,000 and $82,000 for
the three and six month periods ended June 30, 1996 as compared to
the corresponding periods in 1995. These increases are due to the
recognition in the second quarter of 1996 of approximately $175,000
of interest previously earned on restricted cash balances partially
offset by reduced interest income related to the decline in
investments in commercial lease paper and installment contract
receivable.
Amortization of organization and equipment acquisition costs
decreased approximately $263,000 and $459,000 for the three and six
month periods ended June 30, 1996 as compared to the corresponding
periods in 1995 due to the completion of the amortization of these
costs in 1996.
Management fees-New Era represent amounts paid New Era for managing
the Partnership on a day-to-day basis and for acquiring leases for
the Continuing Limited Partners. These fees amounted to
approximately $352,000 and $787,000 for the three and six months
ended June 30, 1996 as compared to $537,000 and $1,122,000 for the
same periods in 1995. The decreases are attributable to declining
Partnership activity and the cessation of lease acquisitions in
January 1996. See Note 8 to the Partnership's financial statements
included in the 1995 Form 10-K.
The General Partner's expense reimbursement represents the amount
paid to LRC in excess of LRC's 1% share of cash flow available for
distribution. Total amounts paid to LRC are primarily a function
of the amount of time LRC spends on the activities of the
Partnership and the timing of certain LRC expenses. Total amounts
paid to LRC for the three and six months ended June 30, 1996 were
approximately $65,000 and $262,000 ($55,000 and $238,000,
respectively, representing the General Partner's expense
reimbursement and $10,000 and $24,000, respectively, representing
LRC's 1% of cash flow available for distribution) as compared to
approximately $168,000 and $319,000 ($137,000 and $200,000,
respectively, representing the General Partner's expense
reimbursement and $32,000 and $118,000, respectively, representing
LRC's 1% cash flow available for distribution) for the
corresponding periods ended June 30, 1996.
Professional fees decreased approximately $95,000 and $76,000 for
the three and six month periods ended June 30, 1996 as compared to
the corresponding periods in 1995 primarily due to decreased legal
fees relating to collections and Partnership claims against former
accountants and others.
Other operating expenses decreased approximately $81,000 and
$108,000 for the three and six month periods ended June 30, 1996 as
compared to the corresponding periods in 1995 as a result of
reduced losses on sales of equipment residuals.
Provisions for lease losses are the result of management's ongoing
assessment of potential losses inherent in the lease portfolios.
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
Reference is made to Item 3 - Legal Proceedings in the
Partnership's December 31, 1995 Form 10-K, as amended, for a
discussion of material legal proceedings involving the Partnership.
Reference is made to Part II, Item 1 - Legal Proceedings in the
Partnership's March 31, 1996 Form 10-Q for a discussion of legal
proceedings involving claims against restricted cash and diverted
and other assets.
ITEM 2. CHANGES IN SECURITIES
- ------------------------------
None.
ITEM 3.
- -------
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------------------------------------------------------------
None.
ITEM 5. OTHER INFORMATION
- --------------------------
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
(a) Exhibits
- -------------
See Exhibit Index.
(b) Reports on Form 8-K
- ------------------------
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized, on the 12th day of
August 1996.
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
Registrant
By: DONALD D. TORISKY
Donald D. Torisky
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XIX, L.P.
By: DOUGLAS E. VAN SCOY
Douglas E. Van Scoy
Chief Financial Officer and Director
New Era Funding Corp.
Managing Agent of
Datronic Equipment Income Fund XIX, L.P.
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 Financial Data Schedule, which is
submitted electronically to the
Securities and Exchange Commission
for information only and not filed.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and the Statements of Revenue and Expenses and is qualified in its
entirety by reference to such Report on Form 10-Q.
</LEGEND>
<CIK> 0000859072
<NAME> DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,988,619
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,166,955
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,772,645
<TOTAL-LIABILITY-AND-EQUITY> 16,166,955
<SALES> 0
<TOTAL-REVENUES> 917,628
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 46,025
<LOSS-PROVISION> 175,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (717,803)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
