<PAGE> 1
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
September 30, 1997 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> 2
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
PART I - FINANCIAL INFORMATION
Item 1.
Index to Financial Statements
Balance Sheets
September 30, 1997 (unaudited) 3
December 31, 1996 4
Statements of Revenue and Expenses (unaudited)
For the three months ended September 30, 1997 5
For the three months ended September 30, 1996 6
For the nine months ended September 30, 1997 7
For the nine months ended September 30, 1996 8
Statements of Changes in Partners' Equity
For the nine months ended September 30, 1997
(unaudited) 9
Statements of Cash Flows (unaudited)
For the nine months ended September 30, 1997 10
For the nine months ended September 30, 1996 11
Notes to Financial Statements (unaudited) 12
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations 13 - 16
PART II - OTHER INFORMATION
Items 1-6. 17
2
<PAGE> 3
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
BALANCE SHEETS
September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- -----------
<S> <C> <C> <C>
ASSETS
------
Cash and cash equivalents $ 1,259,747 $2,113,676 $ 3,373,423
Investments in commercial lease
paper, net 3,794 35,774 39,568
Net investment in direct
financing leases - 3,396,790 3,396,790
Diverted and other assets, net 713,344 3,495,176 4,208,520
Datronic assets, net - - -
----------- ---------- -----------
$ 1,976,885 $9,041,416 $11,018,301
=========== ========== ===========
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Accounts payable and
accrued expenses $ 8,982 $ 54,567 $ 63,549
Lessee rental deposits 49,485 306,080 355,565
----------- ---------- -----------
Total liabilities 58,467 360,647 419,114
Total partners' equity 1,918,418 8,680,769 10,599,187
----------- ---------- -----------
$ 1,976,885 $9,041,416 $11,018,301
=========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
BALANCE SHEETS
By Class of Limited Partner
December 31, 1996
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS
------
Cash and cash equivalents $ 1,446,892 $ 2,130,637 $ 3,577,529
Due from management company 7,747 51,383 59,130
Investments in commercial
lease paper, net 10,035 74,458 84,493
Net investment in direct
financing leases 7,047 5,634,500 5,641,547
Diverted and other
assets, net 713,344 3,495,176 4,208,520
Datronic assets, net - - -
----------- ----------- -----------
$ 2,185,065 $11,386,154 $13,571,219
=========== =========== ===========
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Accounts payable and
accrued expenses $ 39,992 $ 226,286 $ 266,278
Lessee rental deposits 76,715 491,052 567,767
----------- ----------- -----------
Total liabilities 116,707 717,338 834,045
Total partners' equity 2,068,358 10,668,816 12,737,174
----------- ----------- -----------
$ 2,185,065 $11,386,154 $13,571,219
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income (loss) $ (936) $ 128,215 $ 127,279
Interest income 6,552 36,496 43,048
----------- ---------- ----------
5,616 164,711 170,327
----------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 47,349 295,499 342,848
Professional fees 21,456 113,236 134,692
Other operating expenses 3,001 14,877 17,878
Credit for lease losses (12,722) (62,334) (75,056)
Credit for loss on commercial
lease paper (2,542) (32,458) (35,000)
----------- ---------- ----------
56,542 328,820 385,362
----------- ---------- ----------
Net loss $ (50,926) $(164,109) $(215,035)
=========== ========== ==========
Net loss -
General Partner $ (509) $ (1,641) $ (2,150)
=========== ========== ==========
Net loss -
Limited Partners $ (50,417) $(162,468) $(212,885)
=========== ========== ==========
Net loss per limited
partnership unit $ (1.49) $ (.98)
=========== ==========
Weighted average number
of limited partnership units
outstanding 33,858 165,901
=========== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 4,735 $ 272,260 $ 276,995
Interest income 7,890 71,393 79,283
----------- ---------- ----------
12,625 343,653 356,278
----------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 57,342 344,155 401,497
Professional fees 18,750 106,495 125,245
Other operating expenses 4,391 23,175 27,566
Provision for lease losses - 250,000 250,000
Provision for loss on commercial
lease paper 1,695 23,305 25,000
----------- ---------- ----------
82,178 747,130 829,308
----------- ---------- ----------
Net loss $ (69,553) $(403,477) $(473,030)
=========== ========== ==========
Net loss -
General Partner $ (696) $ (4,035) $ (4,731)
=========== ========== ==========
Net loss -
Limited Partners $ (68,857) $(399,442) $(468,299)
=========== ========== ==========
Net loss per limited
partnership unit $ (2.03) $(2.41)
=========== ==========
Weighted average number
of limited partnership units
outstanding 33,858 165,901
=========== ==========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 3,077 $ 483,992 $ 487,069
Interest income 16,913 107,021 123,934
----------- ---------- ----------
19,990 591,013 611,003
----------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 160,742 929,879 1,090,621
Professional fees 53,434 300,378 353,812
Other operating expenses 6,477 33,897 40,374
Credit for lease losses (48,181) (166,072) (214,253)
Credit for loss on commercial
lease paper (2,542) (32,458) (35,000)
----------- ---------- ----------
169,930 1,065,624 1,235,554
----------- ---------- ----------
Net loss $ (149,940) $(474,611) $(624,551)
=========== ========== ==========
Net loss -
General Partner $ (1,499) $ (4,746) $ (6,245)
=========== ========== ==========
Net loss -
Limited Partners $ (148,441) $(469,865) $(618,306)
=========== ========== ==========
Net loss per limited
partnership unit $ (4.38) $(2.83)
=========== ==========
Weighted average number
of limited partnership units
outstanding 33,858 165,901
=========== ==========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the nine months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ------------
<S> <C> <C> <C>
Revenue:
Lease income $ 3,373 $ 883,437 $ 886,810
Interest income 53,411 333,685 387,096
----------- ---------- ------------
56,784 1,217,122 1,273,906
----------- ---------- ------------
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 97,709 541,943 639,652
Professional fees 57,497 306,344 363,841
Other operating expenses 9,812 63,779 73,591
Provision for lease losses - 425,000 425,000
Provision for loss on commercial
lease paper 1,695 23,305 25,000
----------- ---------- ------------
285,991 2,178,748 2,464,739
----------- ---------- ------------
Net loss $ (229,207) $(961,626) $(1,190,833)
=========== ========== ============
Net loss -
General Partner $ (2,292) $ (9,616) $ (11,908)
=========== ========== ============
Net loss -
Limited Partners $ (226,915) $(952,010) $(1,178,925)
=========== ========== ============
Net loss per limited
partnership unit $ (6.70) $(5.74)
=========== ==========
Weighted average number
of limited partnership units
outstanding 33,858 165,901
=========== ==========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
STATEMENT OF CHANGES IN PARTNERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
----------- -------------- ------------ -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1996 $(730,106)* $2,141,949 $11,325,331 $12,737,174
Distributions to partners (13,289) - (1,500,147) (1,513,436)
Net loss (6,245) (148,441) (469,865) (624,551)
Allocation of General
Partner's equity 749,640 (75,090) (674,550) -
--------- ---------- ----------- -----------
Balance, September 30, 1997 $ - $1,918,418 $ 8,680,769 $10,599,187
========= ========== =========== ===========
</TABLE>
* Balance as previously reported was $0 due to allocation of $73,591 and
$656,515 to Liquidating and Continuing Limited Partners' Equity,
respectively.
See accompanying notes to financial statements.
9
<PAGE> 10
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
Cash flows used for operating activities:
Net loss $ (149,940) $ (474,611) $ (624,551)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Credit for lease losses (48,181) (166,072) (214,253)
Credit for loss on commercial
lease paper (2,542) (32,458) (35,000)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (31,010) (171,719) (202,729)
Lessee rental deposits (27,230) (184,972) (212,202)
Due from management company 7,747 51,383 59,130
----------- ----------- -----------
(251,156) (978,449) (1,229,605)
----------- ----------- -----------
Cash flows from investing activities:
Principal collections on leases 55,228 2,403,782 2,459,010
Repayments of commercial lease paper 8,783 71,142 79,925
----------- ----------- -----------
64,011 2,474,924 2,538,935
----------- ----------- -----------
Cash flows used for financing activities:
Distributions to Limited Partners - (1,500,147) (1,500,147)
Distributions to General Partner - (13,289) (13,289)
----------- ----------- -----------
- (1,513,436) (1,513,436)
----------- ----------- -----------
Net decrease in cash and cash equivalents (187,145) (16,961) (204,106)
Cash and cash equivalents:
Beginning of year 1,446,892 2,130,637 3,577,529
----------- ----------- -----------
End of third quarter $ 1,259,747 $ 2,113,676 $ 3,373,423
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
Cash flows used for operating activities:
Net loss $ ( 229,207) $ (961,626) $(1,190,833)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 25,620 125,528 151,148
Provision for lease losses - 425,000 425,000
Provision for losses on commercial
lease paper 1,695 23,305 25,000
Changes in assets and liabilities:
Accounts payable and accrued
expenses (17,562) (109,108) (126,670)
Lessee rental deposits (37,821) (215,056) (252,877)
Due to management company 297 (26,561) (26,264)
----------- ----------- ------------
(256,978) (738,518) (995,496)
----------- ----------- ------------
Cash flows from investing activities:
Purchases of lease receivables - (919,590) (919,590)
Principal collections on leases 222,031 3,908,473 4,130,504
Sale of leases - 931,931 931,931
Repayments of commercial lease paper 8,311 148,562 156,873
Release of restricted cash 182,488 894,135 1,076,623
Principal collections on
installment contract receivable 50,390 246,897 297,287
----------- ----------- ------------
463,220 5,210,408 5,673,628
----------- ----------- ------------
Cash flows used for financing activities:
Distributions to Limited Partners - (4,765,984) (4,765,984)
Distributions to General Partner - (36,480) (36,480)
----------- ----------- ------------
- (4,802,464) (4,802,464)
----------- ----------- ------------
Net increase (decrease) in
cash and cash equivalents 206,242 (330,574) (124,332)
Cash and cash equivalents:
Beginning of year 1,219,379 2,056,790 3,276,169
----------- ----------- ------------
End of third quarter $ 1,425,621 $ 1,726,216 $ 3,151,837
=========== =========== ============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
(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
3, 4, 5, and 6 to the Partnership's financial statements included in the 1996
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 1996 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.
In December 1996, the Court approved a Management Termination Agreement between
New Era Funding Corp. and Lease Resolution Corporation ("LRC"). Pursuant to
that agreement, LRC assumed day-to-day management responsibility for the
Partnership and for the related expenses incurred on its behalf retroactive to
July 1, 1996. Accordingly, management fees totaling $342,125 for the period
July 1-September 30, 1996 originally reported as Management fees-New Era in
the Partnership's Statements of Revenue and Expenses for the three and nine
months ended September 30, 1996 have been reclassified as General Partner's
expense reimbursement. This reclassification has no effect on the
Partnership's net loss for these periods and is consistent with the manner in
which these expenses were reported for the full year in the Partnership's 1996
financial statements included in 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 entered its Liquidating Phase in August 1996.
Accordingly, Continuing Limited Partners received their last reduced Target
Distribution on July 1, 1996 and received their first Liquidating Distribution
on October 1, 1996.
12
<PAGE> 13
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,
1996 through September 30, 1997. The discussion and analysis of results of
operations is for the three and nine months ended September 30, 1997 as
compared to the corresponding periods in 1996.
Financial Condition, Liquidity and Capital Resources
During the nine months ended September 30, 1997, Partnership assets continued
to be converted to cash in order to pay Partnership operating expenses,
liquidate Partnership liabilities and make distributions to limited partners.
Investments in commercial lease paper, net decreased $45,000 during the nine
months ended September 30, 1997 due to scheduled principal collections of
$80,000, partially offset by a credit for loss on commercial paper of $35,000.
Net investment in direct financing leases decreased $2,245,000 during the nine
months ended September 30, 1997. This decrease is primarily attributable to
principal collections of $2,459,000, partially offset by a credit for lease
losses of $214,000.
Accounts payable and accrued expenses decreased $203,000 during the nine months
ended September 30, 1997 primarily due to payment of accrued legal fees and
sales and use taxes.
Lessee rental deposits decreased $212,000 from the return of lease deposits at
the expiration of the respective leases.
In the aggregate, partners' equity decreased $2,138,000 during the nine months
ended September 30, 1997 due to a net loss of $625,000 and distributions to
partners of $1,513,000.
During the nine months ended September 30, 1997, the Partnership's operating
activities resulted in a use of $1,230,000 of cash. This was due to a net loss
of $625,000 and decreases in accounts payable, accrued expenses and lessee
rental deposits of $415,000 and a non-cash credit for lease losses and
commercial paper of $249,000, partially offset by a decrease in due from
management company of $59,000. During the period, cash flows from investing
activities totaled $2,539,000 comprised of principal collections on leases of
$2,459,000 and collections of commercial lease paper of $80,000. Cash flows
used for financing activities of $1,513,000, consisted of distributions to
limited partners of $1,500,000 and the general partner of $13,000.
The Partnership's sources of liquidity on both a long-term and short-term basis
are expected to come principally from cash-on-hand and cash receipts from
leases owned by the Partnership. In addition, the
13
<PAGE> 14
Partnership's sources of liquidity on a long-term basis are expected to include
proceeds from the sale of Diverted and other assets and portions of the
Partnership's lease portfolios 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, provide for the ongoing pursuit of
litigation and an orderly liquidation of the Partnership. Distributions to
Liquidating Limited Partners were suspended after the October 1, 1995
distribution. Distributions to the Continuing Limited Partners will continue as
long as cash is available.
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 3, 5 and 9 to the Partnership's financial statements
included in the 1996 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 unlikely that any additional
distributions to Liquidating Limited Partners will be made until all remaining
assets are liquidated and the pending litigation is resolved. The amount of
future distributions, if any, to the Limited Partners is likely to be
significantly less than the amount of partners' equity reflected in the
September 30, 1997 Balance Sheets (see the financial statements included in
Item 1).
Results of Operations
Lease income decreased $150,000 and $400,000 for the three and nine months
ended September 30, 1997 as compared to the corresponding periods in 1996
primarily due to the declining lease portfolio, partially offset by a $125,000
reduction in lease income in the second quarter 1996 which provided for the
return of lessee overpayments previously recorded as income.
Interest income decreased $36,000 and $263,000 for the three and nine months
ended September 30, 1997 as compared to the corresponding periods in 1996.
These decreases are primarily due to (i) an early payoff of an installment
contract receivable in December 1996 which generated interest income of $32,000
and $103,000, respectively, for the three and nine month periods ended
September 30, 1996, and (ii) the recognition in the second quarter of 1996 of
$175,000 of interest previously earned on restricted cash balances. These
amounts are partially offset by additional interest earned for the nine months
ended September 30, 1997 from increased average cash balances.
Amortization of organization and equipment acquisition costs decreased $151,000
to zero for the nine months ended September 30, 1997 as compared to the
corresponding periods in 1996 because these costs became fully amortized as of
June, 1996.
Management fees-New Era represents payments to New Era Funding for managing the
day-to-day operations of the Partnership pursuant to a Management Agreement
that was terminated effective June 30, 1996.
14
<PAGE> 15
Accordingly, no management fees were paid to New Era for any periods after that
date. Management fees of $787,000 for the nine months ended September 30, 1996
are all attributable to the first six months of the year. Effective July 1,
1996, the General Partner, Lease Resolution Corporation ("LRC") assumed
responsibility for the day-to-day management of the Partnership and the related
expenses are included in General Partner's expense reimbursement (see Note 8 to
the financial statements included in the 1996 Form 10-K).
The General Partner's expense reimbursement includes (i) payments to LRC for
expenses it incurred as general partner beyond those covered by its partner
distributions, and (ii) effective July 1, 1996, reimbursement of additional
expenses incurred by LRC in the day-to-day management of the Partnership. The
following table summarizes all payments to LRC for the three and nine months
ended September 30, 1996 and 1997.
General
Expense Partner
Reimbursement Distributions Total
------------------------------------------
Three months ended
9/30/97 $ 343,000 $ 5,000 $ 348,000
9/30/96 402,000 12,000 414,000
------------------------------------------
Increase (decrease) $ (59,000) $ (7,000) $ (66,000)
==========================================
Nine months ended
9/30/97 $ 1,091,000 $ 13,000 $1,104,000
9/30/96 640,000 36,000 676,000
------------------------------------------
Increase (decrease) $ 451,000 $ (23,000) $ 428,000
==========================================
Total payments to LRC for the three months ended September 30, 1997 decreased
$66,000 compared to last year because of staff reductions and other cost
savings associated with the management of the Partnership. These 1997 savings
were partially offset by a $120,000 premium for insurance coverage that extends
through the ultimate liquidation of the Partnership.
The nine month increase of $428,000 reflects the fact that LRC managed the
day-to-day operations of the Partnership for all three quarters through
September 30, 1997 versus only one quarter in 1996, partially offset by staff
reductions and other cost savings. The increase also includes the $120,000
insurance premium noted above and a $66,000 one-time charge for relocating the
former New Era staff to reduced office space.
Professional fees increased $9,000 for the three months and decreased $10,000
for the nine months ended September 30, 1997 as compared to the corresponding
periods in 1996. The increase is primarily due to increased legal fees related
to Partnership claims against former accountants and others partially offset by
a decrease in collection fees, other legal fees and audit fees. The decrease
for the nine
15
<PAGE> 16
month period resulted from reductions in legal fees to others and audit fees
partially offset by increased legal fees related to Partnership claims against
former accountants and others.
Other operating expenses decreased $10,000 and $33,000 for the three and nine
months ended September 30, 1997 as compared to the corresponding periods in
1996 primarily due to reductions in bank charges, UCC filing fees and
miscellaneous expenses.
Provision (credit) for lease losses reflects Management's ongoing assessment of
potential losses inherent in the lease portfolio and in 1997 lease collections
on certain leases in excess of those anticipated in prior years.
16
<PAGE> 17
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1996 Form 10-K, as amended, for a discussion of material legal proceedings
involving the Partnership.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
See Exhibit Index.
(b) Reports on Form 8-K
None.
17
<PAGE> 18
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 13th day of November 1997.
DATRONIC EQUIPMENT INCOME FUND XIX, L.P.
Registrant
By: /s/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: /s/ROBERT P. SCHAEN
---------------------------------------
Robert P. Schaen
Vice Chairman and Chief Financial Officer,
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XIX, L.P.
18
<PAGE> 19
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.
19
<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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,373,423
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 11,018,301
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 10,599,187
<TOTAL-LIABILITY-AND-EQUITY> 11,018,301
<SALES> 0
<TOTAL-REVENUES> 611,003
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 40,374
<LOSS-PROVISION> (249,253)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (624,551)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
