<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, 1996 Commission File Number 0-21276
- --------------------- -------------------------------
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 36-3744792
- --------------- ---------------------------
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 FINANCE INCOME FUND I, L.P.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
PART I - FINANCIAL INFORMATION
Item 1.
Index to Financial Statements
Balance Sheets
September 30, 1996 (unaudited)
December 31, 1995
Statements of Revenue and Expenses (unaudited)
For the three months ended September 30, 1996
For the three months ended September 30, 1995
For the nine months ended September 30, 1996
For the nine months ended September 30, 1995
Statements of Changes in Partners' Equity
For the nine months ended September 30, 1996
(unaudited)
Statements of Cash Flows (unaudited)
For the nine months ended September 30, 1996
For the nine months ended September 30, 1995
Notes to Financial Statements (unaudited)
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II - OTHER INFORMATION
Items 1-6.
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DATRONIC FINANCE INCOME FUND I, L.P.
BALANCE SHEETS
September 30, 1996 - Unaudited
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $454,456 $1,666,400 $2,120,856
Net investment in direct
financing leases 23,323 3,580,418 3,603,741
Diverted and other assets, net 154,191 1,012,162 1,166,353
-------- ---------- ----------
$631,970 $6,258,980 $6,890,950
======== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and
accrued expenses $ 3,262 $ 31,346 $ 34,608
Lessee rental deposits 25,446 212,028 237,474
Due to management company 167 1,096 1,263
-------- ---------- ----------
Total liabilities 28,875 244,470 273,345
Total partners' equity 603,095 6,014,510 6,617,605
-------- ---------- ----------
$631,970 $6,258,980 $6,890,950
======== ========== ==========
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 4
DATRONIC FINANCE INCOME FUND I, L.P.
BALANCE SHEETS
December 31, 1995
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $469,897 $1,079,361 $1,549,258
Net investment in direct
financing leases 72,639 5,699,235 5,771,874
Diverted and other assets, net 154,191 1,012,162 1,166,353
Restricted cash 44,363 291,209 335,572
Organization costs, net of
accumulated amortization 5,990 39,319 45,309
Acquisition costs, net of
accumulated amortization 17,744 116,479 134,223
-------- ---------- ----------
$764,824 $8,237,765 $9,002,589
======== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and
accrued expenses $ 7,934 $ 63,322 $ 71,256
Lessee rental deposits 40,486 338,107 378,593
Due to management company 37 243 280
-------- ---------- ----------
Total liabilities 48,457 401,672 450,129
Total partners' equity 716,367 7,836,093 8,552,460
-------- ---------- ----------
$764,824 $8,237,765 $9,002,589
======== ========== ==========
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 5
DATRONIC FINANCE INCOME FUND I, 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 (loss) $ (3,975) $ 107,866 $ 103,891
Interest income 1,002 23,057 24,059
-------- --------- ----------
(2,973) 130,923 127,950
-------- --------- ----------
Expenses:
Amortization of organization
and equipment acquisition costs 7,911 51,933 59,844
Management fees-New Era 19,588 175,084 194,672
General Partner's
expense reimbursement 1,487 9,761 11,248
Professional fees 4,658 36,437 41,095
Other operating expenses 834 6,165 6,999
Provision for lease losses - 125,000 125,000
-------- --------- ----------
34,478 404,380 438,858
-------- --------- ----------
Net loss $(37,451) $(273,457) $ (310,908)
======== ========= ==========
Net loss -
General Partner $ (375) $ (2,734) $ (3,109)
======== ========= ==========
Net loss -
Limited Partners $(37,076) $(270,723) $ (307,799)
======== ========= ==========
Net loss per Limited
Partnership Unit $(4.82) $(5.36)
====== ======
Weighted average number
of Limited Partnership Units
outstanding 7,699 50,535
====== ======
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 6
DATRONIC FINANCE INCOME FUND I, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended September 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Revenue:
Lease income $ 5,000 $ 248,704 $ 253,704
Settlement proceeds (Note 5) 16,397 107,638 124,035
Interest income 831 8,352 9,183
--------- --------- ---------
22,228 364,694 386,922
--------- --------- ---------
Expenses:
Amortization of organization
and equipment acquisition costs 7,912 51,933 59,845
Management fees-New Era 18,529 406,257 424,786
General Partner's
expense reimbursement 965 6,332 7,297
Professional fees (Note 5) 9,329 62,328 71,657
Other operating expenses 1,188 15,372 16,560
--------- --------- ---------
37,923 542,222 580,145
--------- --------- ---------
Net loss $ (15,695) $(177,528) $(193,223)
========= ========= =========
Net loss -
General Partner $ (156) $ (1,775) $ (1,931)
========= ========= =========
Net loss -
Limited Partners $ (15,539) $(175,753) $(191,292)
========= ========= =========
Net loss per Limited
Partnership Unit $(2.02) $(3.48)
====== ======
Weighted average number
of Limited Partnership Units
outstanding 7,699 50,535
====== ======
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 7
DATRONIC FINANCE INCOME FUND I, 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 (loss) $ (5,619) $ 414,159 $ 408,540
Interest income 8,921 104,635 113,556
--------- ---------- ----------
3,302 518,794 522,096
--------- ---------- ----------
Expenses:
Amortization of organization
and equipment acquisition costs 23,734 155,798 179,532
Management fees-New Era 59,093 541,900 600,993
General Partner's
expense reimbursement 10,296 67,588 77,884
Professional fees 20,903 149,665 170,568
Other operating expenses 2,548 21,208 23,756
Provision for lease losses - 250,000 250,000
--------- ---------- ----------
116,574 1,186,159 1,302,733
--------- ---------- ----------
Net loss $(113,272) $ (667,365) $ (780,637)
========= ========== ==========
Net loss -
General Partner $ (1,133) $ (6,674) $ (7,807)
========= ========== ==========
Net loss -
Limited Partners $(112,139) $ (660,691) $ (772,830)
========= ========== ==========
Net loss per Limited
Partnership Unit $(14.57) $(13.07)
======= =======
Weighted average number
of Limited Partnership Units
outstanding 7,699 50,535
======= =======
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 8
DATRONIC FINANCE INCOME FUND I, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the nine months ended September 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Revenue:
Lease income $ 19,148 $ 771,182 $ 790,330
Settlement proceeds (Note 5) 16,397 107,638 124,035
Interest income 2,320 26,979 29,299
--------- ---------- ---------
37,865 905,799 943,664
--------- ---------- ---------
Expenses:
Amortization of organization
and equipment acquisition costs 23,734 155,800 179,534
Management fees-New Era 58,127 870,860 928,987
General Partner's
expense reimbursement 8,120 53,300 61,420
Professional fees (Note 5) 28,704 200,991 229,695
Other operating expenses 1,922 33,104 35,026
Credit for lease losses (19,494) (127,964) (147,458)
--------- ---------- ---------
101,113 1,186,091 1,287,204
--------- ---------- ----------
Net loss $ (63,248) $ (280,292) $(343,540)
========= ========== =========
Net loss -
General Partner $ (632) $ (2,803) $ (3,435)
========= ========= =========
Net loss -
Limited Partners $ (62,616) $(277,489) $(340,105)
========= ========= =========
Net loss per Limited
Partnership Unit $(8.13) $ (5.49)
====== =======
Weighted average number
of Limited Partnership Units
outstanding 7,699 50,535
====== =======
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 9
DATRONIC FINANCE INCOME FUND I, L.P.
STATEMENTS 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, 1995 $(225,857)* $ 733,761 $ 8,044,556 $ 8,552,460
Distributions to partners
(Note 3) (16,119) - (1,138,099) (1,154,218)
Net loss (7,807) (112,139) (660,691) (780,637)
Allocation of General
Partner's equity 249,783 (18,527) (231,256) -
-------- --------- ----------- -----------
Balance, September 30, 1996 $ - $ 603,095 $ 6,014,510 $ 6,617,605
========= ========= =========== ===========
</TABLE>
* Balance as previously reported was $0 due to allocation of $17,394 and
$208,463 to Liquidating and Continuing Limited Partners' Equity,
respectively.
See accompanying notes to financial statements.
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<PAGE> 10
DATRONIC FINANCE INCOME FUND I, 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 from operating activities:
Net loss $(113,272) $ (667,365) $ (780,637)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 23,734 155,798 179,532
Provision for lease losses - 250,000 250,000
Changes in assets and liabilities:
Accounts payable and accrued
expenses (4,672) (31,976) (36,648)
Lessee rental deposits (15,040) (126,079) (141,119)
Due to management company 130 853 983
--------- ----------- ----------
(109,120) (418,769) (527,889)
--------- ----------- ----------
Cash flows from investing activities:
Principal collections on leases 49,316 1,868,817 1,918,133
Release of restricted cash 44,363 291,209 335,572
--------- ----------- ----------
93,679 2,160,026 2,253,705
--------- ----------- ----------
Cash flows from financing activities:
Distributions to Limited Partners (a) - (1,138,099) (1,138,099)
Distributions to General Partner - (16,119) (16,119)
--------- ----------- ----------
- (1,154,218) (1,154,218)
--------- ----------- ----------
Net increase (decrease) in
cash and cash equivalents (15,441) 587,039 571,598
Cash and cash equivalents:
Beginning of year 469,897 1,079,361 1,549,258
--------- ----------- ----------
End of third quarter $ 454,456 $ 1,666,400 $2,120,856
========= =========== ==========
</TABLE>
(a) Distributions during the period were $0 per unit for Liquidating Limited
Partners and $22.52 per unit for Continuing Limited Partners (see Note
3).
See accompanying notes to financial statements.
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<PAGE> 11
DATRONIC FINANCE INCOME FUND I, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (63,248) $ (280,292) $ (343,540)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 23,734 155,800 179,534
Credit for lease losses (19,494) (127,964) (147,458)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (5,249) (18,999) (24,248)
Lessee rental deposits (8,020) (44,184) (52,204)
Due to Management Company 116 17,269 17,385
--------- ----------- -----------
(72,161) (298,370) (370,531)
--------- ----------- -----------
Cash flows from investing activities:
Purchases of lease receivables - (5,076,374) (5,076,374)
Principal collections on leases 153,985 2,681,065 2,835,050
Sale of leases (Note 4) 18,025 3,714,379 3,732,404
Distribution of diverted and other assets 57,031 374,371 431,402
Distribution of Datronic assets 5,300 34,788 40,088
---------- ------------ ------------
234,341 1,728,229 1,962,570
---------- ------------ ------------
Cash flows from financing activities:
Distributions to Limited Partners (a) (20,017) (2,371,039) (2,391,056)
Distributions to General Partner (1,767) (48,795) (50,562)
---------- ------------ ------------
(21,784) (2,419,834) (2,441,618)
---------- ------------ ------------
Net increase (decrease) in cash
and cash equivalents 140,396 (989,975) (849,579)
Cash and cash equivalents:
Beginning of year 320,268 1,801,421 2,121,689
--------- ----------- -----------
End of third quarter $ 460,664 $ 811,446 $ 1,272,110
========= =========== ===========
</TABLE>
(a) Distributions during the period were $2.60 per unit for Liquidating Limited
Partners and $46.92 per unit for Continuing Limited Partners (see Note 3).
See accompanying notes to financial statements.
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<PAGE> 12
DATRONIC FINANCE INCOME FUND I, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
(Unaudited)
NOTE 1 - ORGANIZATION:
Datronic Finance Income Fund I, L.P., a Delaware Limited Partnership (the
"Partnership"), was formed on November 21, 1990 for the purpose of leasing both
high- and low-technology equipment. Reference is made to Notes 4, 6, 7 and 8 to
the Partnership's financial statements included in the 1995 Form 10-K for a
discussion of the alleged diversion of Partnership assets in 1991 and 1992 and
the subsequent litigation and settlement, change in general partner, new
classes of limited partners established and amendments to the Partnership
Agreement which occurred.
NOTE 2 - BASIS OF FINANCIAL STATEMENTS:
The accompanying financial statements should be read in conjunction with the
Partnership's financial statements included in the 1995 Form 10-K. The
financial information furnished herein is unaudited but in the opinion of
Management includes all adjustments necessary (all of which are normal
recurring adjustments) for a fair presentation of financial condition and
results of operations. See Note 3 to the Partnership's financial statements
included in the 1995 Form 10-K.
NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:
Distributions to Liquidating Limited Partners were suspended after payment of
the April 1, 1995 distribution and distributions to Continuing Limited Partners
were reduced from an annual rate of 12.5% to an annual rate of 6% effective
with the October 1, 1995 distribution. On October 1, 1996, the Partnership
entered its Liquidating Phase. Accordingly, the Continuing Limited Partners
received their last reduced Target Distribution on September 1, 1996 and their
first Liquidating Distribution on October 1, 1996.
NOTE 4 - LEASE PORTFOLIO SALES:
During the nine months ended September 30, 1995, the Partnership, Fund XVIII,
Fund XIX and Fund XX each entered into separate lease purchase agreements with
Southern Pacific Thrift & Loan Association to sell equipment leases at discount
rates ranging from 10.75% to 12.25% which resulted in aggregate net proceeds of
approximately $16.7 million. The Partnership's proceeds were approximately
$3.7
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<PAGE> 13
DATRONIC FINANCE INCOME FUND I, L.P.
NOTES TO FINANCIAL STATEMENTS
million. Of this amount, approximately all of the proceeds were allocable to
Continuing Limited Partners and invested in new leases.
NOTE 5 - SETTLEMENT WITH FORMER ATTORNEYS:
On August 10, 1995, the United States District Court of the Northern District
of Illinois, Eastern Division, approved as fair, reasonable and adequate, a
settlement with all the Datronic Partnerships and the Partnerships' former
attorneys, Siegan, Barbakoff, Gomberg & Kane in the aggregate amount of
$1,775,000 ($124,035 for the Partnership) or $2.13 per unit (see Note 6 to the
Partnership's financial statements included in the 1995 Form 10-K). A total of
$683,147 ($47,737 for the Partnership) of expenses consisting primarily of
professional fees, were incurred in connection with this recovery resulting in
a net recovery of $1,091,853 or $1.31 per unit. However, since the
Partnerships had previously paid $239,397 ($16,729 for the Partnership) of
these expenses, a total of $1,331,250 or $1.60 per unit was available for
distribution. Accordingly, on October 1, 1995, the Partnership distributed
$1.60 per unit to Liquidating Limited Partners and to Continuing Limited
Partners. All settlement proceeds and all related expenses have been allocated
to all unit holders of the Datronic Partnerships based on the number of limited
partnership units owned.
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<PAGE> 14
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of liquidity and capital resources covers
material changes in the Partnership's financial condition from December 31,
1995 through September 30, 1996. The discussion and analysis of results of
operations is for the three and nine month periods ended September 30, 1996 as
compared to the corresponding periods in 1995.
Financial Condition, Liquidity and Capital Resources
During the nine months ended September 30, 1996, Partnership assets were
converted to cash in order to pay Partnership operating expenses and make
distributions to the Continuing Limited Partners and General Partner and to
increase cash balances to ensure that sufficient cash will be available to
pursue pending litigation and liquidate the Partnership in an orderly manner.
Net investment in direct financing leases decreased approximately $2,168,000
during the nine months ended September 30, 1996. This decrease is primarily
attributable to principal collections of approximately $1,918,000 and a
provision for lease losses of $250,000.
Restricted cash of approximately $336,000 has been included in cash and cash
equivalents due to the removal of claims against such cash (see Part II, Item 1
- - Legal Proceedings) and repayment to the Partnership with interest in June
1996.
Accounts payable and accrued expenses decreased approximately $37,000 during
the nine months ended September 30, 1996 primarily due to payment of legal fees
and sales and use taxes.
Lessee rental deposits decreased approximately $141,000 during the nine months
ended September 30, 1996 primarily due to overpayments and security deposits
returned to lessees.
In the aggregate, partners' equity decreased approximately $1.9 million during
the nine months ended September 30, 1996 due to a net loss of approximately
$781,000 and distributions to partners of approximately $1.2 million.
During the nine months ended September 30, 1996, the Partnership's operating
activities resulted in a use of cash of approximately $528,000. This was due
principally to a net loss of approximately $781,000 and decreases in accounts
payable and security deposits of approximately $178,000 partially offset by
non-cash expenses of approximately $180,000 relating to amortization and a
provision of
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<PAGE> 15
$250,000 for lease losses. During the period, cash flows from investing
activities aggregated approximately $2,254,000 relating to principal
collections on leases of approximately $1,918,000 and the availability of
restricted cash in the amount of approximately $336,000. Cash flows used for
financing activities of approximately $1,154,000, consisted of distributions to
Continuing Limited Partners of approximately $1,138,000 and the General Partner
of approximately $16,000.
The Partnership's principal sources of liquidity on both a long-term and
short-term basis are receipts from leases and cash on hand. In addition, the
Partnership's sources of liquidity on a long-term basis are expected to include
proceeds from the sale of diverted and other assets and, possibly, portions of
the Partnership's lease portfolio which may be sold in bulk. Management
believes that its sources of liquidity in the short and long-term are
sufficient to meet its operating cash obligations. Distributions to the
Liquidating Limited Partners were suspended after payment of the April 1, 1995
distribution. Distributions to the Continuing Limited Partners were reduced to
an annual rate of 6% effective with the October 1, 1995 distribution. On
October 1, 1996, the Partnership entered the Liquidating Phase. Accordingly,
the Continuing Limited Partners received their last reduced Target Distribution
on September 1, 1996 and their first Liquidating Distribution on October 1,
1996. Distributions to the Liquidating Limited Partners were suspended and
distributions to the Continuing Limited Partners were reduced to ensure that
sufficient cash will be available to pursue recoveries under pending litigation
with the Partnership's former accountants and others and to liquidate the
Partnership in an orderly manner.
The provisions of the Amended Partnership Agreement require the Partnership to
enter its liquidating phase if full Target Distributions are not met for four
consecutive calendar quarters. In addition, lease reinvestment activity is
prohibited during the liquidating phase and in any period in which full Target
Distributions have not been paid.
The continued operation and eventual liquidation of the Partnership involves
numerous complex issues which have to be resolved. These issues relate to the
timing and realizability of lease-related assets, diverted and other assets,
Datronic assets, litigation and the liquidation of the other Datronic
Partnerships (see Notes 4, 6 and 9 to the financial statement included in the
1995 Form 10-K). These issues make it difficult to predict the time and costs
necessary to operate and liquidate the Partnership in an orderly manner. As a
result of these uncertainties, it is not possible to predict the timing and
availability of cash for future distributions to Limited Partners. However, it
is likely that the
- 15 -
<PAGE> 16
amount of future distributions, if any, to the Limited Partners will ultimately
be significantly less than the amount of Partner's Equity reflected in the
September 30, 1996 Balance Sheets (see financial statement included in Item 1).
Results of Operations
Lease income decreased approximately $150,000 and $382,000 for the three and
nine months ended September 30, 1996 compared to the corresponding periods in
1995. These decreases are primarily due to a decline in the lease portfolios
and provisions of $45,000 and $36,000 recorded in the second and third quarter,
respectively, of 1996 to provide for the return of lessee overpayments
previously recorded as lease income.
Settlement proceeds of approximately $124,000 resulted from a settlement with
the Partnership's former attorney's. See Note 5 to the financial statements
included in Item 1.
Interest income increased approximately $15,000 and $84,000 for the three and
nine months ended September 30, 1996 as compared to the corresponding periods
in 1995. The increase for the three months ended September 30, 1996 is
primarily due to additional interest earned due to higher cash balances. The
increase for the nine months ended September 30, 1996 is primarily due to the
recognition in the second quarter of 1996 of interest previously earned on
restricted cash balances and additional interest earned due to higher cash
balances.
Management fees-New Era represent amounts paid New Era for managing the
Partnership on a day-to-day basis and for acquiring leases for the Continuing
Limited Partners. These fees amounted to approximately $195,000 and $601,000
for the three and nine months ended September 30, 1996, respectively, as
compared to $425,000 and $929,000 for the same periods in 1995. The decreases
are attributable to declining Partnership activity and the cessation of lease
acquisitions in September 1995. See Note 8 to the Partnership's financial
statements included in the 1995 Form 10-K.
The General Partner's expense reimbursement represents the amount paid to LRC
in excess of LRC's 1% share of cash flow available for distribution. Total
amounts paid to LRC are primarily a function of the amount of time LRC spends
on the activities of the Partnership and the timing of certain LRC expenses.
Total amounts paid to LRC for the three and nine months ended September 30,
1996 were approximately $20,000 and $94,000, respectively, ($11,000 and
$78,000, respectively, representing the General Partner's expense reimbursement
and $9,000 and $16,000, respectively, representing LRC's 1% cash flow available
for distribution) as compared to
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<PAGE> 17
$58,000 and $115,000, respectively, ($7,000 and $61,000, respectively,
representing the General Partner's expense reimbursement and $51,000 and
$54,000, respectively, representing LRC's 1% of cash flow available for
distribution) for the three and nine months ended September 30, 1995. See Note
7 to the Partnership's financial statements included in the 1995 Form 10-K.
Professional Fees decreased approximately $31,000 and $59,000 for the three and
nine months ended September 30, 1996 as compared to the corresponding periods
in 1995. These decreases are primarily due to the fees paid in 1995 in
connection with the settlement with the Partnership's former attorneys (see
Note 5 to the financial statements included in Item 1).
The provision (credit) for lease losses reflects Management's ongoing
assessment of potential losses inherent in the lease portfolios. Increased
provisions for lease losses in 1996 reflect increases in past due and deficient
leases. In 1995, actual collections for certain leases were in excess of those
anticipated in prior years.
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<PAGE> 18
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1995 Form 10-K for a discussion of material legal proceedings involving the
Partnership.
Reference is made to Part II, Item 1 - Legal Proceedings in the Partnership's
March 31, 1996 Form 10-Q for a discussion of legal proceedings involving claims
against restricted cash and diverted and other assets.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3.
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5.
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
See Exhibit Index.
(b) Reports on Form 8-K
None.
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<PAGE> 19
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 11th day of November 1996.
DATRONIC FINANCE INCOME FUND I, L.P.
Registrant
By: DONALD D. TORISKY
---------------------------------------
Donald D. Torisky
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Finance Income Fund I, L.P.
By: DOUGLAS E. VAN SCOY
---------------------------------------
Douglas E. Van Scoy
Chief Financial Officer and Director
New Era Funding Corp.
Managing Agent of
Datronic Finance Income Fund I, L.P.
- 19 -
<PAGE> 20
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.
- 20 -
<PAGE> 21
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 11th day of November 1996.
DATRONIC FINANCE INCOME FUND I, L.P.
Registrant
By: ____________________________________
Donald D. Torisky
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Finance Income Fund I, L.P.
By: ___________________________________
Douglas E. Van Scoy
Chief Financial Officer and Director
New Era Funding Corp.
Managing Agent of
Datronic Finance Income Fund I, L.P.
- 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>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,120,856
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,890,950
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,617,605
<TOTAL-LIABILITY-AND-EQUITY> 6,890,950
<SALES> 0
<TOTAL-REVENUES> 522,096
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 23,756
<LOSS-PROVISION> 250,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (780,637)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
