<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, 1996
-------------------------------------------------
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, 1996 Commission File No. 33-35148
American Income Fund I-B, a Massachusetts Limited Partnership
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-3106525
- ------------------ ---------------
(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 X No
--- ---
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
FORM 10-Q
INDEX
Page
----
PART I. FINANCIAL INFORMATION:
<TABLE>
<CAPTION>
Item 1. Financial Statements
<S> <C>
Statement of Financial Position
at March 31, 1996 and December 31, 1995 3
Statement of Operations
for the three months ended March 31, 1996 and 1995 4
Statement of Cash Flows
for the three months ended March 31, 1996 and 1995 5
Notes to the Financial Statements 6-8
</TABLE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-12
PART II. OTHER INFORMATION:
Items 1 - 6 13
The accompanying notes are an integral part
of these financial statements.
2
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
STATEMENT OF FINANCIAL POSITION
March 31, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ -------------
<S> <C> <C>
ASSETS
- ------
Cash and cash equivalents $1,370,070 $ 839,087
Rents receivable 403,664 332,823
Accounts receivable - affiliate 27,272 587,704
Equipment at cost, net of accumulated
depreciation of $5,628,551 and $6,097,419
at March 31, 1996 and December 31,
1995, respectively 1,737,922 1,986,861
Organization costs, net of accumulated
amortization of $5,000 and $4,833 at
March 31, 1996 and December 31, -- 167
1995, respectively ---------- ----------
Total assets $3,538,928 $3,746,642
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Notes payable $ 947,640 $1,022,276
Accrued interest 36,576 28,320
Accrued liabilities 70,639 68,610
Accrued liabilities - affiliate 6,700 7,090
Deferred rental income 22,286 --
Cash distributions payable to partners 113,176 113,176
---------- ----------
Total liabilities 1,197,017 1,239,472
---------- ----------
Partners' capital (deficit):
General Partner (200,275) (192,012)
Limited Partnership Interests
(286,711 Units; initial
purchase price of $25 each) 2,542,186 2,699,182
---------- ----------
Total partners' capital 2,341,911 2,507,170
---------- ----------
Total liabilities and partners' $3,538,928 $3,746,642
capital ========== ==========
</TABLE>
3
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
STATEMENT OF OPERATIONS
for the three months ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
-------- --------
<S> <C> <C> <C>
Income:
Lease revenue $214,159 $415,237
Interest income 15,812 10,295
Gain on sale of equipment 11,250 --
-------- --------
Total income 241,221 425,532
-------- --------
Expenses:
Depreciation and amortization 249,106 373,338
Interest expense 22,327 39,784
Equipment management fees - 9,418 14,373
affiliate
Operating expenses - affiliate 12,453 22,324
-------- --------
Total expenses 293,304 449,819
-------- --------
Net loss $(52,083) $(24,287)
======== ========
Net loss $ (0.17) $ (0.08)
per limited partnership unit ======== ========
Cash distribution declared
per limited partnership unit $ 0.38 $ 0.75
======== ========
</TABLE>
4
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
STATEMENT OF CASH FLOWS
for the three months ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
------------ ----------
<S> <C> <C>
Cash flows from (used in) operating
activities:
Net loss $ (52,083) $ (24,287)
Adjustments to reconcile net loss to
net cash from operating activities:
Depreciation and amortization 249,106 373,338
Gain on sale of equipment (11,250) --
Changes in assets and liabilities
Decrease (increase) in:
rents receivable (70,841) (151,824)
accounts receivable - affiliate 560,432 (5,304)
Increase (decrease) in:
accrued interest 8,256 26,670
accrued liabilities 2,029 (3,221)
accrued liabilities - affiliate (390) (452)
deferred rental income 22,286 927
---------- ---------
Net cash from operating
activities 707,545 215,847
---------- ---------
Cash flows from investing activities:
Proceeds from equipment sales 11,250 --
---------- ---------
Net cash from investing 11,250 --
activities ---------- ---------
Cash flows from (used in) financing
activities:
Proceeds from notes payable -- 737,116
Principal payments - notes payable (74,636) (81,597)
Distributions paid (113,176) (226,352)
---------- ---------
Net cash from (used in)
financing activities (187,812) 429,167
---------- ---------
Net increase in cash and cash
equivalents 530,983 645,014
Cash and cash equivalents at beginning
of period 839,087 235,990
---------- ---------
Cash and cash equivalents at end of
period $1,370,070 $ 881,004
========== =========
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest $ 14,071 $ 13,114
========== =========
</TABLE>
The accompanying notee are an integral part
of these financial statements.
5
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
Notes to the Financial Statements
March 31, 1996
(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 1995 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1995 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, 1996 and December 31, 1995 and results of operations for
the three month periods ended March 31, 1996 and 1995 have been made and are
reflected.
NOTE 2 - CASH
- -------------
At March 31, 1996, the Partnership had $1,365,000 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 $916,150
are due as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
For the year ending March 31, 1997 $434,955
1998 334,196
1999 60,684
2000 27,784
2001 21,284
Thereafter 37,247
--------
Total $916,150
========
</TABLE>
6
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
Notes to the Financial Statements
(Continued)
NOTE 4 - EQUIPMENT
- ------------------
The following is a summary of equipment owned by the Partnership at March 31,
1996. In the opinion of American Finance Group ("AFG"), the acquisition cost of
the equipment did not exceed its fair market value.
<TABLE>
<CAPTION>
Lease Term Equipment
Equipment Type (Months) at Cost
- -------------- ---------- ------------
<S> <C> <C>
Aircraft 38 $ 2,641,262
Tractors & heavy duty trucks 48-72 1,580,520
Materials handling 4-60 1,062,370
Trailers/intermodal containers 60-84 887,210
Research & test 24-60 532,779
Construction & mining 48-60 371,529
Photocopying 27-60 160,074
Communications 22-52 102,953
Motor vehicles 60 27,776
-----------
Total equipment cost 7,366,473
Accumulated depreciation (5,628,551)
-----------
Equipment, net of accumulated depreciation $ 1,737,922
===========
</TABLE>
At March 31, 1996, the Partnership's equipment portfolio included equipment
having a proportionate original cost of $2,778,408, representing approximately
38% of total equipment cost.
The summary above includes equipment held for re-lease or sale with a cost and
net book value of approximately $711,000 and $87,000, respectively, at March 31,
1996. The General Partner is actively seeking the sale or re-lease of all
equipment not on lease.
Effective January 1, 1996, the Partnership adopted Financial Accounting
Standards Board Statement No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to Be Disposed Of, which requires impairment
losses to be recorded on long-lived assets used in operations when indicators of
impairment are present and the undiscounted cash flows estimated to be generated
by those assets are less than the assets' carrying amount. Statement 121 also
addresses the accounting for long-lived assets that are expected to be disposed
of. Adoption of this statement did not have a material impact on the financial
statements of the Partnership.
NOTE 5 - RELATED PARTY TRANSACTIONS
- -----------------------------------
All operating expenses incurred by the Partnership are paid by AFG on behalf
of the Partnership and AFG is reimbursed at its actual cost for such
expenditures. Fees and other costs incurred during the three month periods ended
March 31, 1996 and 1995 which were paid or accrued by the Partnership to AFG or
its Affiliates, are as follows:
7
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
Notes to the Financial Statements
(Continued)
<TABLE>
<CAPTION>
1996 1995
-------- --------
<S> <C> <C>
Equipment management fees $ 9,418 $14,373
Administrative charges 5,000 3,000
Reimbursable operating expenses
due to third parties 7,453 19,324
------- -------
Total $21,871 $36,697
======= =======
</TABLE>
All rents and proceeds from the sale of equipment are paid directly to either
AFG or to a lender. AFG temporarily deposits collected funds in a separate
interest-bearing escrow account prior to remittance to the Partnership. At March
31, 1996, the Partnership was owed $27,272 by AFG for such funds and the
interest thereon. These funds were remitted to the Partnership in April 1996.
NOTE 6 - NOTES PAYABLE
- ----------------------
Notes payable at March 31, 1996 consisted of installment notes of $947,640
payable to banks and institutional lenders. All of the installment notes are
non-recourse, with interest rates ranging between 7.04% and 10.12% and are
collateralized by the equipment and assignment of the related lease payments.
The carrying amount of notes payable approximates fair value at March 31, 1996.
The installment notes will be fully amortized by noncancellable rents.
The annual maturities of the installment notes payable are as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
For the year ending March 31, 1997 $625,797
1998 236,123
1999 15,751
2000 16,896
2001 18,125
Thereafter 34,948
---------
Total $947,640
=========
</TABLE>
NOTE 7 - SUBSEQUENT EVENT
- -------------------------
Pursuant to its agreements with PLM International, Inc., referred to in Note 8
of the Partnership's 1995 financial statements, American Finance Group agreed to
change its name and logo, except where they are used in connection with the
Partnership and other affiliated investment programs. For all other purposes,
American Finance Group will operate as Equis Financial Group effective April 2,
1996.
8
<PAGE>
AMERICAN INCOME FUND I-B,
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, 1996 compared to the three months ended March 31,
- ------------------------------------------------------------------------------
1995:
- -----
Overview
- --------
As an equipment leasing partnership, the Partnership was organized to acquire
a diversified portfolio of capital equipment subject to lease agreements. The
Partnership was designed to progress through three principal phases:
acquisitions, operations, and liquidation. During the operations phase, a period
of approximately six years, all equipment in the Partnership's portfolio will
progress through various stages. Initially, all equipment will generate rental
revenues under primary term lease agreements. During the life of the
Partnership, these agreements will expire on an intermittent basis and equipment
held pursuant to the related leases will be renewed, re-leased or sold,
depending on prevailing market conditions and the assessment of such conditions
by AFG to obtain the most advantageous economic benefit. Over time, a greater
portion of the Partnership's original equipment portfolio will become available
for remarketing and cash generated from operations and from sales or
refinancings will begin to fluctuate. Ultimately, all equipment will be sold and
the Partnership will be dissolved. The Partnership's operations commenced in
1991.
Results of Operations
- ---------------------
For the three months ended March 31, 1996, the Partnership recognized lease
revenue of $214,159 compared to $415,237 for the same period in 1995. The
decrease in lease revenue from 1995 to 1996 was expected and resulted
principally from primary 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 AFG or an affiliated equipment leasing program
sponsored by AFG. 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.
During the three months ended March 31, 1996, the Partnership sold equipment,
which had been fully depreciated, to an existing lessee. This sale resulted in a
net gain, for financial statement purposes, of $11,250. There were no equipment
sales during the corresponding period in 1995.
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.
The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including AFG'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. AFG 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.
9
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART I. FINANCIAL INFORMATION
The total economic value realized upon final disposition of each asset is
comprised of all primary lease term revenues 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 and amortization expense for the three months ended March 31,
1996 was $249,106 compared to $373,338 for the same period in 1995. 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.
Interest expense was $22,327 or 10.4% of lease revenue for the three months
ended March 31, 1996, compared to $39,784 or 9.6% of lease revenue for the same
period in 1995. Interest expense increased as a percentage of lease revenue from
1995 to 1996 due to leveragings obtained during 1995. Interest expense in future
periods will decline in amount and as a percentage of lease revenue as the
principal balance of notes payable is reduced through the application of rent
receipts to outstanding debt.
Management fees were approximately 4.4% of lease revenue for the three months
ended March 31, 1996, compared to 3.5% of lease revenue the same period 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.
Collectively, operating expenses represented 5.8% of lease revenue for the three
months ended March 31, 1996, compared to 5.4% of lease revenue for the same
period in 1995. 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 $707,545 and $215,847 for the three months ended
March 31, 1996 and 1995, respectively. Future renewal, re-lease and equipment
sale activities will cause a decline in the Partnership's lease revenues 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 decline as the Partnership experiences a higher frequency
of remarketing events.
10
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART I. FINANCIAL INFORMATION
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, 1996, the Partnership realized $11,250 in equipment sale
proceeds. No equipment sale proceeds were realized in the corresponding period
in 1995. 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.
The Partnership obtained long-term financing in connection with certain
equipment leases. The origination of such indebtedness and the subsequent
repayments of principal are reported as components of financing activities. Cash
inflows of $737,116 during the three months ended March 31, 1995 resulted from
leveraging a portion of the Partnership's equipment portfolio with third-party
lenders. Each note payable is recourse only to the specific equipment financed
and to the minimum rental payments contracted to be received during the debt
amortization period (which period generally coincides with the lease rental
term). As rental payments are collected, a portion or all of the rental payment
is used to repay the associated indebtedness. In future periods, the amount of
cash used to repay debt obligations will decline as the principal balance of
notes payable is reduced through the collection and application of rents.
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, 1996, the Partnership declared
total cash distributions of Distributable Cash From Operations and Distributable
Cash From Sales and Refinancings of $113,176. In accordance with the Amended and
Restated Agreement and Certificate of Limited Partnership, the Limited Partners
were allocated 95% of these distributions, or $107,517 and the General Partner
was allocated 5%, or $5,659. The first quarter 1996 cash distribution was paid
on April 15, 1996.
Cash distributions paid to the Limited Partners consist of both a return of
and a return on capital. To the extent that cash distributions consist of Cash
From Sales or Refinancings, substantially all of such cash distributions should
be viewed as a return of 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 AFG 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-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART II. OTHER 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-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART II. OTHER INFORMATION
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
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 1-B, a Massachusetts Limited Partnership
By: AFG Leasing VI Incorporated, a Masschusetts
corporation and the General Partner of
the Registrant.
By: /s/ Michael J. Butterfield
--------------------------
Treasurer of AFG Leasing VI Incorporated
(Duly Authorized Officer and
Principal Accounting Officer)
Date: May 13, 1996
--------------------------
By: /s/ Gary Romano
--------------------------
Gary M. Romano
Clerk of AFG Leasing VI Incorporated
(Duly Authorized Officer and
Principal Financial Officer)
Date: May 13, 1996
--------------------------
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,370,070
<SECURITIES> 0
<RECEIVABLES> 430,936
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,801,006
<PP&E> 7,366,473
<DEPRECIATION> 5,628,551
<TOTAL-ASSETS> 3,538,928
<CURRENT-LIABILITIES> 249,377
<BONDS> 947,640
0
0
<COMMON> 0
<OTHER-SE> 2,341,911
<TOTAL-LIABILITY-AND-EQUITY> 3,538,928
<SALES> 214,159
<TOTAL-REVENUES> 241,221
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 270,977
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,327
<INCOME-PRETAX> (52,083)
<INCOME-TAX> 0
<INCOME-CONTINUING> (52,083)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (52,083)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
