<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM_____________________________ TO_________________
For Quarter Ended March 31, 1997 Commission File No. 33-35148
American Income Fund I-A, a Massachusetts Limited Partnership
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-3097216
- ------------------------ --------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
98 North Washington Street, Boston, MA 02114
- --------------------------------------- ----------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 854-5800
------------------------------
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
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. Yes X No
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court 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. Yes___ No___
<PAGE>
AMERICAN INCOME FUND I-A,
A MASSACHUSETTS LIMITED PARTNERSHIP
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statement of Financial Position
at March 31, 1997 and December 31, 1996........................ 3
Statement of Operations
for the three months ended March 31, 1997 and 1996............. 4
Statement of Cash Flows
for the three months ended March 31, 1997 and 1996............. 5
Notes to the Financial Statements............................... 6-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................... 9-12
PART II. OTHER INFORMATION:
Items 1--6............................................................. 13
</TABLE>
2
<PAGE>
AMERICAN INCOME FUND I-A
A MASSACHUSETTS LIMITED PARTNERSHIP
STATEMENT OF FINANCIAL POSITION
MARCH 31, 1997 AND DECEMBER 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1997 1996
------------ ------------
<S> <C> <C>
ASSETS
Cash and cash equivalents........................................ $ 1,712,080 $1,721,388
Rents receivable................................................. 30,515 27,902
Accounts receivable--affiliate................................... 60,269 61,144
Equipment at cost, net of accumulated depreciation of $3,759,829
and $3,836,846 at March 31, 1997 and December 31, 1996,
respectively................................................... 447,587 530,926
------------ ------------
Total assets..................................................... $ 2,250,451 $2,341,360
------------ ------------
------------ ------------
LIABILITIES AND PARTNERS' CAPITAL
Accrued liabilities.............................................. $ 33,812 $ 30,870
Accrued liabilities--affiliate................................... 28,827 22,945
Deferred rental income........................................... 6,445 6,445
Cash distributions payable to partners........................... 75,335 75,335
------------ ------------
Total liabilities................................................ 144,419 135,595
------------ ------------
Partners' capital (deficit):
General Partner................................................ (211,584) (206,597)
Limited Partnership Interests (286,274 Units; initial purchase
price of $25 each)............................................ 2,317,616 2,412,362
------------ ------------
Total partners' capital.................................... 2,106,032 2,205,765
------------ ------------
Total liabilities and partners' capital.................... $ 2,250,451 $2,341,360
------------ ------------
------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
STATEMENT OF OPERATIONS
for the three months ended March 31, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Income:
Lease revenue....................................................... $ 125,873 $ 141,153
Interest income..................................................... 20,092 19,585
Gain on sale of equipment........................................... 6,223 12,555
---------- ----------
Total income...................................................... 152,188 173,293
---------- ----------
Expenses:
Depreciation........................................................ 73,686 88,138
Equipment management fees--affiliate................................ 6,205 8,884
Operating expenses--affiliate....................................... 96,695 111,189
---------- ----------
Total expenses.................................................... 176,586 208,211
---------- ----------
Net loss.............................................................. $ (24,398) $ (34,918)
---------- ----------
---------- ----------
Net loss per limited partnership unit................................. $ (0.08) $ (0.12)
---------- ----------
---------- ----------
Cash distribution declared per limited partnership unit............... $ 0.25 $ 0.35
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
STATEMENT OF CASH FLOWS
for the three months ended March 31, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C> <C>
Cash flows from (used in) operating activities:
Net loss.......................................................... $ (24,398) $ (34,918)
Adjustments to reconcile net loss to net cash from operating
activities:
Depreciation.................................................. 73,686 88,138
Gain on sale of equipment..................................... (6,223) (12,555)
Changes in assets and liabilities
Decrease (increase) in:
rents receivable.............................................. (2,613) 8,654
accounts receivable--affiliate................................ 875 (51,115)
Increase (decrease) in:
accrued interest.............................................. -- (135)
accrued liabilities........................................... 2,942 71,485
accrued liabilities--affiliate................................ 5,882 6,721
deferred rental income........................................ -- 9,914
------------ ------------
Net cash from operating activities......................... 50,151 86,189
------------ ------------
Cash flows from investing activities:
Proceeds from equipment sales................................... 15,876 20,899
------------ ------------
Net cash from investing activities......................... 15,876 20,899
------------ ------------
Cash flows used in financing activities:
Principal payments--notes payable............................... -- (5,186)
Distributions paid.............................................. (75,335) (113,003)
------------ ------------
Net cash used in financing activities...................... (75,335) (118,189)
------------ ------------
Net decrease in cash and cash equivalents......................... (9,308) (11,101)
Cash and cash equivalents at beginning of period.................. 1,721,388 1,595,008
------------ ------------
Cash and cash equivalents at end of period........................ $ 1,712,080 $ 1,583,907
------------ ------------
------------ ------------
Supplemental disclosure of cash flow information:
Cash paid during the period for interest........................ $ -- $ 135
------------ ------------
------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 1997
(UNAUDITED)
NOTE 1--BASIS OF PRESENTATION
The financial statements presented herein are prepared in conformity with
generally accepted accounting principles and the instructions for preparing Form
10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
Commission and are unaudited. As such, these financial statements do not include
all information and footnote disclosures required under generally accepted
accounting principles for complete financial statements and, accordingly, the
accompanying financial statements should be read in conjunction with the
footnotes presented in the 1996 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1996 Annual Report.
In the opinion of management, all adjustments (consisting of normal and
recurring adjustments) considered necessary to present fairly the financial
position at March 31, 1997 and December 31, 1996 and results of operations for
the three month periods ended March 31, 1997 and 1996 have been made and are
reflected.
NOTE 2--CASH
At March 31, 1997, the Partnership had $1,600,000 invested in reverse
repurchase agreements secured by U.S. Treasury Bills or interests in U.S.
Government securities.
NOTE 3--REVENUE RECOGNITION
Rents are payable to the Partnership monthly, quarterly or semi-annually and
no significant amounts are calculated on factors other than the passage of time.
The leases are accounted for as operating leases and are noncancellable. Rents
received prior to their due dates are deferred. Future minimum rents of $389,376
are due as follows:
<TABLE>
<S> <C> <C>
For the year ending March 31, 1998 $ 248,380
1999 140,996
-------
Total $ 389,376
-------
-------
</TABLE>
NOTE 4--EQUIPMENT
The following is a summary of equipment owned by the Partnership at March
31, 1997. In the opinion of Equis Financial Group Limited Partnership ("EFG"),
(formerly American Finance Group), the acquisition cost of the equipment did not
exceed its fair market value.
6
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
Notes to the financial statements
(continued)
<TABLE>
<CAPTION>
LEASE TERM EQUIPMENT
EQUIPMENT TYPE (MONTHS) AT COST
- ------------------------------------------------------------------ ----------- ------------
<S> <C> <C>
Aircraft.......................................................... 10--36 $ 2,288,254
Materials handling................................................ 2--60 1,235,128
Communications.................................................... 23--60 383,676
Computers & peripherals........................................... 1--51 239,322
Tractors & heavy duty trucks...................................... 78 61,036
------------
Total equipment cost 4,207,416
Accumulated depreciation (3,759,829)
------------
Equipment, net of accumulated depreciation $ 447,587
------------
------------
</TABLE>
At March 31, 1997, the Partnership's equipment portfolio included equipment
having a proportionate original cost of $2,415,273 representing approximately
57% of total equipment cost.
The summary above includes equipment held for sale or re-lease with a
cost and net book value of approximately $1,209,000 and $242,000,
respectively, at March 31, 1997. The equipment includes the Partnership's
proportionate interest in a Boeing 727-251 Advanced aircraft (the
"Aircraft"), formerly leased to Northwest Airlines, Inc., having a cost and
net book value of $1,207,637 and $242,393, respectively, at March 31, 1997.
This aircraft was returned upon expiration of its lease term on November 30,
1995 and is currently undergoing heavy maintenance expected to cost the
Partnership approximately $145,000, all of which was accrued or incurred at
March 31, 1997. The Partnership has experienced delays in the completion of
the Aircraft's heavy maintenance. The Partnership entered into a new 18-month
lease agreement with Transmeridian Airlines, to release the Aircraft at a
base rent to the Partnership of $9,280 per month for 8 months and $8,120 per
month for 10 months, effective upon completion of the heavy maintenance.
NOTE 5--RELATED PARTY TRANSACTIONS
All operating expenses incurred by the Partnership are paid by EFG on behalf
of the Partnership and EFG is reimbursed at its actual cost for such
expenditures. Fees and other costs incurred during each of the three month
periods ended March 31, 1997 and 1996, which were paid or accrued by the
Partnership to EFG or its Affiliates, are as follows:
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Equipment management fees............................................. $ 6,205 $ 8,884
Administrative charges................................................ 8,106 3,138
Reimbursable operating expenses due to third parties.................. 88,589 108,051
---------- ----------
Total........................................................... $ 102,900 $ 120,073
---------- ----------
---------- ----------
</TABLE>
7
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
Notes to the financial statements
(continued)
All rents and proceeds from the sale of equipment are paid directly to
either EFG or to a lender. EFG temporarily deposits collected funds in a
separate interest-bearing escrow account prior to remittance to the Partnership.
At March 31, 1997, the Partnership was owed $60,269 by EFG for such funds and
the interest thereon. These funds were remitted to the Partnership in April
1997.
8
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
FORM 10-Q
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Three months ended March 31, 1997 compared to the three months ended March
31, 1996:
OVERVIEW
The Partnership was organized in 1990 as a direct-participation equipment
leasing program to acquire a diversified portfolio of capital equipment subject
to lease agreements with third parties. The Partnership's stated investment
objectives and policies contemplated that the Partnership would wind-up its
operations within approximately seven years of its inception. The value of the
Partnership's equipment portfolio decreases over time due to depreciation
resulting from age and usage of the equipment, as well as technological changes
and other market factors. In addition, the Partnership does not replace
equipment as it is sold; therefore, its aggregate investment value in equipment
declines from asset disposals occurring in the normal course. As a result of the
Partnership's age and a declining equipment portfolio, the General Partner is
evaluating a variety of transactions that will reduce the Partnership's
prospective costs to operate as a publicly registered limited partnership and,
therefore, enhance overall cash distributions to the limited partners. Such a
transaction may involve the sale of the Partnership's remaining equipment or a
transaction that would allow for the consolidation of the Partnership's expenses
with other similarly-organized equipment leasing programs.
RESULTS OF OPERATIONS
For the three months ended March 31, 1997, the Partnership recognized lease
revenue of $125,873 compared to $141,153 for the same period in 1996. The
decrease in lease revenue between 1996 and 1997 was expected and resulted
principally from lease term expirations and the sale of equipment. The
Partnership also earns interest income from temporary investments of rental
receipts and equipment sales proceeds in short-term instruments.
The Partnership's equipment portfolio includes certain assets in which the
Partnership holds a proportionate ownership interest. In such cases, the
remaining interests are owned by an affiliated equipment leasing program
sponsored by EFG. Proportionate equipment ownership enables the Partnership to
further diversify its equipment portfolio by participating in the ownership of
selected assets, thereby reducing the general levels of risk which could result
from a concentration in any single equipment type, industry or lessee. The
Partnership and each affiliate individually report, in proportion to their
respective ownership interests, their respective shares of assets, liabilities,
revenues, and expenses associated with the equipment.
For the three months ended March 31, 1997, the Partnership sold equipment
having a net book value of $9,653 to existing lessees and third parties. These
sales resulted in a net gain, for financial statement purposes, of $6,223
compared to a net gain of $12,555 on equipment having a net book value of $8,344
for the same period in 1996.
It cannot be determined whether future sales of equipment will result in a
net gain or a net loss to the Partnership, as such transactions will be
dependent upon the condition and type of equipment being sold and its
marketability at the time of sale. In addition, the amount of gain or loss
reported for financial statement purposes is partly a function of the amount of
accumulated depreciation associated with the equipment being sold.
9
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
FORM 10-Q
PART I. FINANCIAL INFORMATION
The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including EFG's ability to sell and re-lease
equipment. Changing market conditions, industry trends, technological
advances, and many other events can converge to enhance or detract from asset
values at any given time. EFG attempts to monitor these changes in order to
identify opportunities which may be advantageous to the Partnership and which
will maximize total cash returns for each asset.
The total economic value realized upon final disposition of each asset is
comprised of all primary lease term revenue generated from that asset, together
with its residual value. The latter consists of cash proceeds realized upon the
asset's sale in addition to all other cash receipts obtained from renting the
asset on a re-lease, renewal or month-to-month basis. The Partnership classifies
such residual rental payments as lease revenue. Consequently, the amount of gain
or loss reported in the financial statements is not necessarily indicative of
the total residual value the Partnership achieved from leasing the equipment.
Depreciation expense for the three months ended March 31, 1997 was $73,686
compared to $88,138 for the same period in 1996. For financial reporting
purposes, to the extent that an asset is held on primary lease term, the
Partnership depreciates the difference between (i) the cost of the asset and
(ii) the estimated residual value of the asset on a straight-line basis over
such term. For purposes of this policy, estimated residual values represent
estimates of equipment values at the date of primary lease expiration. To the
extent that an asset is held beyond its primary lease term, the Partnership
continues to depreciate the remaining net book value of the asset on a
straight-line basis over the asset's remaining economic life.
Management fees were approximately 4.9% of lease revenue for the three
months ended March 31, 1997 compared to 6.3% of lease revenue for the same
period in 1996. Management fees during the three months ended March 31, 1996
included $2,088 resulting from an underaccrual in 1995. Management fees are
based on 5% of gross lease revenue generated by operating leases and 2% of gross
lease revenue generated by full payout leases.
Operating expenses consist principally of administrative charges,
professional service costs, such as audit and legal fees, as well as printing,
distribution and remarketing expenses. In certain cases, equipment storage or
repairs and maintenance costs may be incurred in connection with equipment being
remarketed. Significant operating expenses were incurred in 1996 and 1997 due to
heavy maintenance and airframe overhaul costs incurred or accrued in connection
with the Partnership's interests in two Boeing 727 aircraft. Certain of the
costs incurred in the first quarter of 1996 were subsequently reimbursed by the
former lessee of the related aircraft. In 1996, the Partnership entered into a
new 36-month lease agreement with Sunworld International Airlines, Inc. to
re-lease one of the aircraft at a base rent to the Partnership of $7,540 per
month (see discussion below relating to the second aircraft). The amount of
future operating expenses cannot be predicted with certainty; however, such
expenses are usually higher during the acquisition and liquidation phases of a
partnership. Other fluctuations typically occur in relation to the volume and
timing of remarketing activities.
LIQUIDITY AND CAPITAL RESOURCES AND DISCUSSION OF CASH FLOWS
The Partnership by its nature is a limited life entity which was established
for specific purposes described in the preceding "Overview". As an equipment
leasing program, the Partnership's principal operating activities derive from
asset rental transactions. Accordingly, the Partnership's principal source of
cash from operations is provided by the collection of periodic rents. These cash
inflows are used to satisfy debt service obligations associated with leveraged
leases, and to pay management fees and operating costs. Operating activities
generated net cash inflows of $50,151 and $86,189 during the three months ended
March 31, 1997 and 1996, respectively. Future renewal, re-lease and equipment
sale activities will continue to cause a decline in the Partnership's lease
revenue
10
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
FORM 10-Q
PART I. FINANCIAL INFORMATION
and corresponding sources of operating cash. Overall, expenses associated
with rental activities, such as management fees, and net cash flow from
operating activities will also continue to decline as the Partnership
experiences a higher frequency of remarketing events.
Ultimately, the Partnership will dispose of all assets under lease. This
will occur principally through sale transactions whereby each asset will be sold
to the existing lessee or to a third party. Generally, this will occur upon
expiration of each asset's primary or renewal/re-lease term. In certain
instances, casualty or early termination events may result in the disposal of an
asset. Such circumstances are infrequent and usually result in the collection of
stipulated cash settlements pursuant to terms and conditions contained in the
underlying lease agreements.
Cash realized from asset disposal transactions is reported under investing
activities on the accompanying Statement of Cash Flows. During the three months
ended March 31, 1997, the Partnership realized $15,876 in equipment sale
proceeds compared to $20,899 for the same period in 1996. Future inflows of cash
from asset disposals will vary in timing and amount and will be influenced by
many factors including, but not limited to, the frequency and timing of lease
expirations, the type of equipment being sold, its condition and age, and future
market conditions.
On November 30, 1995, upon the expiration of its lease term, Northwest
Airlines, Inc. returned a Boeing 727-251 Advanced aircraft (the "Aircraft") in
which the Partnership has an 11.6% ownership interest. The Partnership's
interest in the Aircraft had a cost and net book value of $1,207,637 and
$242,393, respectively, at March 31, 1997. The Aircraft is currently undergoing
heavy maintenance expected to cost the Partnership approximately $145,000, all
of which was accrued or incurred at March 31, 1997. The Partnership entered into
a 18-month lease agreement with Transmeridian Airlines to release the Aircraft
at a base rent to the Partnership of $9,280 per month for 8 months and $8,120
per month for 10 months, effective upon completion of the heavy maintenance. The
Partnership has experienced delays in the completion of the Aircraft's heavy
maintenance.
The Partnership obtained long-term financing in connection with certain
equipment leases. The repayments of principal related to such indebtedness are
reported as a component of financing activities. The Partnership's notes payable
were fully amortized during the three months ended March 31, 1996.
Cash distributions to the General and Limited Partners are declared and
generally paid within fifteen days following the end of each calendar quarter.
The payment of such distributions is presented as a component of financing
activities. For the three months ended March 31, 1997, the Partnership declared
total cash distributions of Distributable Cash from Operations and Distributable
Cash From Sales and Refinancings of $75,335. In accordance with the Amended and
Restated Agreement and Certificate of Limited Partnership, the Limited Partners
were allocated 95% of these distributions, or $71,568, and the General Partner
was allocated 5%, or $3,767. The first quarter 1997 cash distribution was paid
on April 14, 1997.
Cash distributions paid to the Limited Partners consist of both a return
of and a return on capital. Cash distributions do not represent and are not
indicative of yield on investment. Actual yield on investment cannot be
determined with any certainty until conclusion of the Partnership and will be
dependent upon the collection of all future contracted rents, the generation
of renewal and/or re-lease rents, and the residual value realized for each
asset at its disposal date. Future market conditions, technological changes,
the ability of EFG to manage and remarket the assets, and many other events
and circumstances, could enhance or detract from individual asset yields and
the collective performance of the Partnership's equipment portfolio.
The future liquidity of the Partnership will be influenced by the foregoing
and will be greatly dependent upon the collection of contractual rents and the
outcome of residual activities. The General Partner anticipates that
11
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
FORM 10-Q
PART I. FINANCIAL INFORMATION
cash proceeds resulting from these sources will satisfy the Partnership's
future expense obligations. However, the amount of cash available for
distribution in future periods will fluctuate. Equipment lease expirations
and asset disposals will cause the Partnership's net cash from operating
activities to diminish over time; and equipment sale proceeds will vary in
amount and period of realization. In addition, the Partnership may be
required to incur asset refurbishment or upgrade costs in connection with
future remarketing activities. Accordingly, fluctuations in the level of
quarterly cash distributions will occur during the life of the Partnership.
12
<PAGE>
AMERICAN INCOME FUND I-A
a Massachusetts Limited Partnership
FORM 10-Q
PART II. OTHER INFORMATION
<TABLE>
<S> <C>
Item 1. Legal Proceedings
Response: None
Item 2. Changes in Securities
Response: None
Item 3. Defaults upon Senior Securities
Response: None
Item 4. Submission of Matters to a Vote of Security
Holders
Response: None
Item 5. Other Information
Response: None
Item 6(a). Exhibits
Response: None
Item 6(b). Reports on Form 8-K
Response: None
</TABLE>
13
<PAGE>
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below on behalf of the registrant and in the capacity and
on the date indicated.
AMERICAN INCOME FUND I-A, A MASSACHUSETTS LIMITED PARTNERSHIP
By: AFG Leasing VI Incorporated, a Massachusetts
corporation and the General Partner of
the Registrant.
By: /s/ Michael J. Butterfield
------------------------------------
Michael J. Butterfield
Treasurer of AFG Leasing VI Incorporated
(Duly Authorized Officer and
Principal Accounting Officer)
Date: May 15, 1997
-------------------------------------
By: /s/ Gary Romano
-------------------------------------
Gary M. Romano
Clerk of AFG Leasing VI Incorporated
(Duly Authorized Officer and
Principal Financial Officer)
Date: May 15, 1997
-------------------------------------
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,712,080
<SECURITIES> 0
<RECEIVABLES> 90,784
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,802,864
<PP&E> 4,207,416
<DEPRECIATION> 3,759,829
<TOTAL-ASSETS> 2,250,451
<CURRENT-LIABILITIES> 144,419
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,106,032
<TOTAL-LIABILITY-AND-EQUITY> 2,250,451
<SALES> 125,873
<TOTAL-REVENUES> 152,188
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 176,586
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (24,398)
<INCOME-TAX> 0
<INCOME-CONTINUING> (24,398)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (24,398)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
