<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[XX] 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-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 No
--- ---
<PAGE>
AMERICAN INCOME FUND I-B,
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-B
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........................................ $ 1,792,812 $1,938,967
Rents receivable................................................. 42,130 1,509
Accounts receivable--affiliate................................... 525 38,647
Equipment at cost, net of accumulated depreciation of $3,458,701
and $3,460,675 at March 31, 1997 and December 31, 1996,
respectively................................................... 1,553,192 1,597,440
------------ ------------
Total assets................................................... $ 3,388,659 $3,576,563
------------ ------------
------------ ------------
LIABILITIES AND PARTNERS' CAPITAL
Notes payable.................................................... $ 579,352 $ 726,096
Accrued interest................................................. 12,657 3,883
Accrued liabilities.............................................. 18,500 22,750
Accrued liabilities--affiliate................................... 24,853 20,448
Deferred rental income........................................... 5,300 26,165
Cash distributions payable to partners........................... 75,451 75,451
------------ ------------
Total liabilities.............................................. 716,113 874,793
------------ ------------
Partners' capital (deficit):
General Partner................................................. (183,744) (182,282)
Limited Partnership Interests (286,711 Units; initial purchase
price of $25 each)............................................. 2,856,290 2,884,052
------------ ------------
Total partners' capital........................................ 2,672,546 2,701,770
------------ ------------
Total liabilities and partners' capital........................ $ 3,388,659 $3,576,563
------------ ------------
------------ ------------
</TABLE>
The accompanying notes are an integral part
of these financial statements.
3
<PAGE>
AMERICAN INCOME FUND I-B,
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......................................................... $ 152,335 $ 214,159
Interest income....................................................... 21,299 15,812
Gain on sale of equipment............................................. 29,282 11,250
---------- ----------
Total income.......................................................... 202,916 241,221
---------- ----------
Expenses:
Depreciation and amortization......................................... 116,043 249,106
Interest expense...................................................... 16,485 22,327
Equipment management fees--affiliate.................................. 6,633 9,418
Operating expenses--affiliate......................................... 17,528 12,453
---------- ----------
Total expenses........................................................ 156,689 293,304
---------- ----------
Net income (loss)..................................................... $ 46,227 $ (52,083)
---------- ----------
---------- ----------
Net income (loss) per limited partnership unit........................ $ 0.15 $ (0.17)
---------- ----------
---------- ----------
Cash distribution declared per limited partnership unit............... $ 0.25 $ 0.38
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part
of these financial statements.
4
<PAGE>
AMERICAN INCOME FUND I-B,
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 income (loss)................................................. $ 46,227 $(52,083)
Adjustments to reconcile net income (loss) to net cash from
operating activities:
Depreciation and amortization..................................... 116,043 249,106
Gain on sale of equipment......................................... (29,282) (11,250)
Changes in assets and liabilities
Decrease (increase) in:
rents receivable................................................. (40,621) (70,841)
accounts receivable--affiliate................................... 38,122 560,432
Increase (decrease) in:
accrued interest................................................. 8,774 8,256
accrued liabilities.............................................. (4,250) 2,029
accrued liabilities--affiliate................................... 4,405 (390)
deferred rental income........................................... (20,865) 22,286
------------ -----------
Net cash from operating activities.............................. 118,553 707,545
------------ -----------
Cash flows from (used in) investing activities:
Purchase of equipment............................................. (75,957) --
Proceeds from equipment sales..................................... 33,444 11,250
------------ -----------
Net cash from (used in) investing activities.................... (42,513) 11,250
------------ -----------
Cash flows used in financing activities:
Principal payments--notes payable................................. (146,744) (74,636)
Distributions paid................................................ (75,451) (113,176)
------------ -----------
Net cash used in financing activities........................... (222,195) (187,812)
------------ -----------
Net increase (decrease) in cash and cash equivalents.............. (146,155) 530,983
Cash and cash equivalents at beginning of period.................. 1,938,967 839,087
------------ -----------
Cash and cash equivalents at end of period........................ $ 1,792,812 $ 1,370,070
------------ -----------
------------ -----------
Supplemental disclosure of cash flow information:
Cash paid during the period for interest......................... $ 7,711 $ 14,071
------------ -----------
------------ -----------
</TABLE>
The accompanying notes 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, 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 $1,680,000 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 $1,010,527 are due as follows:
For the year ending March 31, 1998 $ 473,393
1999 185,582
2000 170,743
2001 113,306
2002 51,540
Thereafter 15,963
----------
Total $1,010,527
----------
----------
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-B,
a Massachusetts Limited Partnership
Notes to Financial Statements
(Continued)
<TABLE>
<CAPTION>
LEASE TERM EQUIPMENT
EQUIPMENT TYPE (MONTHS) AT COST
- ------------------------------------------------ ------------------------------------------------ -------------
<S> <C> <C>
Aircraft 38 $ 2,641,262
Materials handling 4-60 730,332
Trailers/intermodal containers 60-84 620,259
Research & test 24-60 545,558
Construction & mining 48-60 371,529
Communications 22-52 102,953
-------------
Total equipment cost 5,011,893
Accumulated depreciation (3,458,701)
-------------
Equipment, net of accumulated depreciation $ 1,553,192
-------------
-------------
</TABLE>
At March 31, 1997, the Partnership's equipment portfolio included
equipment having a proportionate original cost of $2,792,790, representing
approximately 56% of total equipment cost.
The summary above includes fully depreciated equipment held for re-lease
or sale with a cost of $369,000. The General Partner is actively seeking the
sale or re-lease of all equipment not on lease.
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 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............................................... $ 6,633 $ 9,418
Administrative charges.................................................. 7,968 5,000
Reimbursable operating expenses due to third parties.................... 9,560 7,453
--------- ---------
Total................................................................ $ 24,161 $ 21,871
--------- ---------
--------- ---------
</TABLE>
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 $525 by EFG for such
funds and the interest thereon. These funds were remitted to the Partnership
in April 1997.
7
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
Notes to Financial Statements
(Continued)
NOTE 6--NOTES PAYABLE
Notes payable at March 31, 1997 consisted of installment notes of
$579,352 payable to banks and institutional lenders. All of the installment
notes are non-recourse, with interest rates ranging between 9.75% and 10.12%
and are collateralized by the equipment and assignment of the related lease
payments. The installment notes will be fully amortized by noncancellable
rents. The carrying amount of notes payable approximates fair value at March
31, 1997.
The annual maturities of the installment notes payable are as follows:
For the year ending March 31, 1998 $ 320,216
1999 69,230
2000 76,344
2001 84,191
2002 29,371
---------
Total $ 579,352
---------
---------
NOTE 7--LEGAL PROCEEDINGS
On July 27, 1995, EFG, on behalf of the Partnership and other
EFG-sponsored investment programs, filed an action in the Commonwealth of
Massachusetts Superior Court Department of the Trial Court in and for the
County of Suffolk, for damages and declaratory relief against a lessee of the
Partnership, National Steel Corporation ("National Steel"), under a certain
Master Lease Agreement ("MLA") for the lease of certain equipment. EFG is
seeking the reimbursement by National Steel of certain sales and/or use taxes
paid to the State of Illinois and other remedies provided by the MLA. On
August 30, 1995, National Steel filed a Notice of Removal which removed the
case to the United States District Court, District of Massachusetts. On
September 7, 1995, National Steel filed its Answer to EFG's Complaint along
with Affirmative Defenses and Counterclaims, seeking declaratory relief and
alleging breach of contract, implied covenant of good faith and fair dealing
and specific performance. EFG filed its Answer to these counterclaims on
September 29, 1995. Though the parties have been discussing settlement with
respect to this matter for some time, to date, the negotiations have been
unsuccessful. Notwithstanding these discussions, EFG recently filed an
Amended and Supplemental Complaint alleging a further default by National
Steel under the MLA and EFG recently filed a Summary Judgment on all claims
and counterclaims. The matter remains pending before the Court. The
Partnership has not experienced any material losses as a result of this
action.
8
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART1. 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
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. In order to increase the marketability of the Partnership's
remaining equipment, the General Partner expects to use the Partnership's
available cash and future cash flow to retire indebtedness. This will
negatively effect short-term cash distributions.
RESULTS OF OPERATIONS
For the three months ended March 31, 1997, the Partnership recognized
lease revenue of $152,335, compared to $214,159 for the same period in 1996.
The decrease in lease revenue from 1996 to 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.
During the three months ended March 31, 1997, the Partnership sold
equipment having a net book value of $4,162 to existing lessees and third
parties. These sales resulted in a net gain, for financial statement
purposes, of $29,282 compared to a net gain of $11,250 on fully depreciated
equipment 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-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART 1. 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 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, 1997 was $116,043 compared to $249,106 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.
Interest expense was $16,485 or 10.8% of lease revenue during the three
months ended March 31, 1997 compared to $22,327 or 10.4% of lease revenue for
the same period in 1996. 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. In addition, the General Partner expects to use a portion of the
Partnership's available cash and future cash flow to retire indebtedness (see
Overview).
Management fees were approximately 4.4% of lease during each of the three
months ended March 31, 1997 and 1996. Management fees and 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
11.5% of lease revenue during the three months ended March 31, 1997 compared
to 5.8% of lease revenue for the same period in 1996. The increase in
operating expenses from 1996 to 1997 was due primarily to an increase in
administrative charges. 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
10
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART 1. FINANCIAL INFORMATION
inflows of $118,553 and $707,545 in the three months ended March 31, 1997 and
1996, 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.
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 expended for equipment acquisitions and cash realized from asset
disposal transactions are reported under investing activities on the
accompanying Statement of Cash Flows. During the three months ended March 31,
1997, the Partnership expended $75,957 to upgrade certain research and test
equipment. There were no equipment acquisitions during the same period in
1996. For the three months ended March 31, 1997, the Partnership realized
$33,444 in equipment sale proceeds compared to $11,250 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.
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. 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 is scheduled to decline as the principal balance of notes
payable is reduced through the collection and application of rents. However,
the amount of cash used to repay debt obligations may fluctuate due to the
use of the Partnership's available cash and future cash flow to retire
indebtedness (see Overview).
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 $75,451. In
accordance with the Amended and Restated Agreement and Certificate of Limited
Partnership, the Limited Partners were allocated 95% of these distributions,
or $71,678 and the General Partner was allocated 5%, or $3,773. 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.
11
<PAGE>
AMERICAN INCOME FUND I-B,
a Massachusetts Limited Partnership
FORM 10-Q
PART 1. FINANCIAL INFORMATION
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 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
<TABLE>
<CAPTION>
<S> <C>
Item 1. Legal Proceedings
Response:
Refer to Note 7 herein.
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-B, 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> 1,792,812
<SECURITIES> 0
<RECEIVABLES> 42,655
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,835,467
<PP&E> 5,011,893
<DEPRECIATION> 3,458,701
<TOTAL-ASSETS> 3,388,659
<CURRENT-LIABILITIES> 136,761
<BONDS> 579,352
0
0
<COMMON> 0
<OTHER-SE> 2,672,546
<TOTAL-LIABILITY-AND-EQUITY> 3,388,659
<SALES> 152,335
<TOTAL-REVENUES> 202,916
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 140,204
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16,485
<INCOME-PRETAX> 46,227
<INCOME-TAX> 0
<INCOME-CONTINUING> 46,227
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 46,227
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
