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
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1995
/ / Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _____ to _____
Commission file number: 0-20131
Fidelity Leasing Income Fund VIII, L.P.
_______________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 23-2627143
_______________________________________________________________________________
(State of organization) (I.R.S. Employer Identification No.)
250 King of Prussia Road, Radnor, PA 19087
_______________________________________________________________________________
(Address of principal executive offices) (Zip code)
(610) 964-7102
_______________________________________________________________________________
(Registrant's telephone number, including area code)
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 regis-
trant was required to file such reports), and (2) has been subject to such fil-
ing requirements for the past 90 days.
Yes __X__ No _____
Page 1 of 11
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND VIII, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
September 30, December 31,
1995 1994
___________ ____________
Cash and cash equivalents $2,523,988 $2,005,306
Accounts receivable 375,034 620,295
Interest receivable 897 8,568
Due from related parties 7,252 4,504
Equipment under operating leases
(net of accumulated depreciation
of $6,349,546 and $6,493,302,
respectively) 2,727,316 3,986,155
Equipment held for sale or lease 292,640 337,611
Organization costs
(net of accumulated amortization of
$8,167 and $6,167, respectively) 1,833 3,833
__________ __________
Total assets $5,928,960 $6,966,272
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 45,124 $ 50,867
Accounts payable and
accrued expenses 137,320 42,740
Due to related parties 52,522 51,023
__________ __________
Total liabilities 234,966 144,630
Partners' capital 5,693,994 6,821,642
__________ __________
Total liabilities and
partners' capital $5,928,960 $6,966,272
========== ==========
The accompanying notes are an integral part of these financial statements.
2
FIDELITY LEASING INCOME FUND VIII, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
____ ____ ____ ____
Income:
Rentals $558,943 $768,580 $1,832,746 $2,399,652
Interest 41,997 28,087 133,765 68,073
Gain on sale of equipment,
net - 17,538 - 19,337
Other 233 289 1,179 1,247
________ ________ __________ __________
601,173 814,494 1,967,690 2,488,309
________ ________ __________ __________
Expenses:
Depreciation and amortization 454,152 677,459 1,579,554 2,108,923
Write-down of equipment
to net realizable value - 50,000 125,616 50,000
General and administrative 19,854 14,349 57,805 46,940
General and administrative to
related party 26,377 29,090 85,929 79,795
Management fee to related party 22,108 30,610 72,555 95,665
Loss on sale of equipment, net 1,938 - 70,421 -
________ ________ __________ __________
524,429 801,508 1,991,880 2,381,323
________ ________ __________ __________
Net income (loss) $ 76,744 $ 12,986 $ (24,190) $ 106,986
======== ======== ========== ==========
Net income (loss) per equivalent
limited partnership unit $ 5.03 $ .55 $ (1.56) $ 5.30
======== ======== ========== ==========
Weighted average number of
equivalent limited partnership
units outstanding during
the period 14,618 17,627 15,371 18,341
======== ======== ========== ==========
The accompanying notes are an integral part of these financial statements.
3
FIDELITY LEASING INCOME FUND VIII, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the nine months ended September 30, 1995
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1995 $ 2,075 23,223 $6,819,567 $6,821,642
Redemptions - (411) (149,455) (149,455)
Cash distributions (9,540) - (944,463) (954,003)
Net income (loss) (242) - (23,948) (24,190)
_______ ______ __________ __________
Balance, September 30, 1995 $(7,707) 22,812 $5,701,701 $5,693,994
======= ====== ========== ==========
The accompanying notes are an integral part of these financial statements.
4
FIDELITY LEASING INCOME FUND VIII, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
____ ____
Cash flows from operating activities:
Net income (loss) $ (24,190) $ 106,986
__________ __________
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 1,579,554 2,108,923
Write-down of equipment to net
realizable value 125,616 50,000
(Gain) loss on sale of equipment, net 70,421 (19,337)
(Increase) decrease in accounts receivable 245,261 (19,353)
(Increase) decrease in due from related parties (2,748) 26,080
Increase (decrease) in lease rents paid
in advance (5,743) 83,942
Increase (decrease) in accounts payable and
accrued expenses 94,580 11,289
Increase (decrease) in other, net 9,170 13,794
__________ __________
2,116,111 2,255,338
__________ __________
Net cash provided by operating activities 2,091,921 2,362,324
__________ __________
Cash flows from investing activities:
Acquisition of equipment (897,705) (1,733,792)
Proceeds from sale of equipment 427,924 347,152
Maturity of investment securities
held to maturity - 3,995
__________ __________
Net cash used in investing activities (469,781) (1,382,645)
__________ __________
Cash flows from financing activities:
Redemptions of capital (149,455) (374,350)
Distributions (954,003) (984,968)
__________ __________
Net cash used in financing activities (1,103,458) (1,359,318)
__________ __________
Increase (decrease) in cash and cash equivalents 518,682 (379,639)
Cash and cash equivalents, beginning
of period 2,005,306 1,970,693
__________ __________
Cash and cash equivalents, end of period $2,523,988 $1,591,054
========== ==========
The accompanying notes are an integral part of these financial statements.
5
FIDELITY LEASING INCOME FUND VIII, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
(Unaudited)
The accompanying unaudited condensed financial statements have been prepared
by the Fund in accordance with generally accepted accounting principles,
pursuant to the rules and regulations of the Securities and Exchange Commis-
sion. In the opinion of Management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Certain amounts on the 1994 financial statements have been
reclassified to conform to the presentation adopted in 1995.
1. EQUIPMENT LEASED
Equipment on lease consists primarily of computer peripheral equipment
under operating leases. A majority of the equipment was manufactured by
IBM. The lessees have agreements with the manufacturer to provide main-
tenance for the leased equipment. The Fund's operating leases are for
initial lease terms of 12 to 48 months. Generally, operating leases will
not recover all of the undepreciated cost and related expenses of its
rental equipment during the initial lease terms and the Fund is prepared to
remarket the equipment in future years. Fund policy is to review quarterly
the expected economic life of its rental equipment in order to deter-
mine the recoverability of its undepreciated cost. Recent and anticipated
technological developments affecting computer equipment and competitive
factors in the marketplace are considered among other things, as part of
this review. In accordance with Generally Accepted Accounting Principles,
the Fund writes down its rental equipment to its estimated net realizable
value when the amounts are reasonably estimated and only recognizes gains
upon actual sale of its rental equipment. As a result, $125,616 and
$50,000 was charged to write-down of equipment to net realizable value for
the nine months ended September 30, 1995 and 1994, respectively. The
General Partner believes, after analyzing the current equipment portfolio,
that there are impending gains to be recognized upon the sale of certain of
its equipment in future years. Any future losses are dependent upon
unanticipated technological developments affecting the computer equipment
industry in subsequent years.
The future approximate minimum rentals to be received on noncancellable
operating leases as of September 30, 1995 are as follows:
Years Ending December 31 Minimum Rentals
________________________ _______________
1995 $ 517,000
1996 958,000
1997 576,000
1998 310,000
1999 31,000
__________
$2,392,000
==========
6
FIDELITY LEASING INCOME FUND VIII, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS
The General Partner receives 4% or 2% of gross rental payments from equip-
ment under operating leases and full pay-out leases, respectively, for
administrative and management services performed on behalf of the Fund.
Full pay-out leases are noncancellable leases for which the rental payments
due during the initial term are at least sufficient to recover the purchase
price of the equipment, including acquisition fees.
The General Partner may also receive up to 3% of the proceeds from the
sale of the Fund's equipment for services and activities to be performed
in connection with the disposition of equipment.
Additionally, the General Partner and its affiliates are reimbursed by the
Fund for certain costs of services and materials used by or for the Fund
except those items covered by the above-mentioned fees. Following is a
summary of fees and costs of services and materials charged by the General
Partner or its affiliates during the three and nine months ended September
30, 1995 and 1994:
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
____ ____ ____ ____
Management fee $22,108 $30,610 $72,555 $95,665
Reimbursable costs 26,377 29,090 85,929 79,795
Sales fee 902 10,597 13,235 10,736
Amounts due from related parties at September 30, 1995 and December 31,
1994 represent monies due the Fund from the General Partner and/or other
affiliated funds for rentals and sales proceeds collected and not yet re-
mitted the Fund.
Amounts due to related parties at September 30, 1995 and December 31, 1994
represent monies due to the General Partner for the fees and costs men-
tioned above, as well as, rentals and sales proceeds collected by the Fund
on behalf of other affiliated funds.
3. SUBSEQUENT EVENT
Cash Distribution:
The General Partner declared a cash distribution of $105,107 in October
1995 for the month ended September 30, 1995, to all admitted partners as of
September 30, 1995.
7
FIDELITY LEASING INCOME FUND VIII, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Fidelity Leasing Income Fund VIII, L.P. had revenues of $601,173 and
$814,494 for the three months ended September 30, 1995 and 1994, respectively,
and $1,967,690 and $2,488,309 for the nine months ended September 30, 1995 and
1994, respectively. Rental income from the leasing of computer peripheral
equipment accounted for 93% and 94% of total revenues for the third quarter
of 1995 and 1994, respectively, and 93% and 96% of total revenues for the nine
months ended September 30, 1995 and 1994, respectively. The decrease in
revenues is primarily attributable to the decrease in rental income. In 1995,
rental income decreased by approximately $804,000 because of equipment which
came off lease and was re-leased at lower rental rates or sold. This decrease,
however, was offset by approximately $237,000 of rents generated from equipment
purchased since the third quarter of 1994. The decrease in revenues was offset
by an increase in interest income resulting from larger cash balances available
for investment and higher interest rates earned in 1995 as compared to 1994.
Expenses were $524,429 and $801,508 for the three months ended September
30, 1995 and 1994, respectively, and $1,991,880 and $2,381,323 for the nine
months ended September 30, 1995 and 1994, respectively. Depreciation and
amortization comprised 87% and 85% of total expenses during the third quarter
of 1995 and 1994, respectively, and 79% and 89% for the nine months ended Sep-
tember 30, 1995 and 1994, respectively. The decrease in expenses is directly
related to the decrease in depreciation expense resulting from equipment which
came off lease or was sold since the third quarter of 1994. However, the
overall decrease in expenses in 1995 was offset by an increase in both the
write-down of equipment to net realizable value and the net loss on sale of
equipment. Based upon the quarterly review of the recoverability of the
undepreciated cost of rental equipment, $125,616 was charged to operations to
write down equipment to its estimated net realizable value during the nine
months ended September 30, 1995 as compared to $50,000 for the nine months
ended September 30, 1994. The General Partner believes, after analyzing the
current equipment portfolio, that there are impending gains to be recognized
upon the sale of certain of its equipment in future years. Any future losses
are dependent upon unanticipated technological developments affecting the
computer equipment industry in subsequent years. Additionally, the Fund
incurred a net loss on sale of equipment of $70,421 for the nine months ended
September 30, 1995 as compared to a net gain on sale of equipment of $19,337
for the nine months ended September 30, 1994.
The Fund's net income (loss) was $76,744 and $12,986 for the three months
ended September 30, 1995 and 1994, respectively, and ($24,190) and $106,986
for the nine months ended September 30, 1995 and 1994, respectively. The
earnings (loss) per equivalent limited partnership unit, after earnings (loss)
allocated to the General Partner, were $5.03 and $.55 based on a weighted
average number of equivalent limited partnership units outstanding of 14,618
and 17,627 for the three months ended September 30 1995 and 1994, respectively.
The earnings (loss) per equivalent limited partnership unit, after earnings
(loss) allocated to the General Partner, were ($1.56) and $5.30 based on a
weighted average number of equivalent limited partnership units outstanding of
15,371 and 18,341 for the nine months ended September 30, 1995 and 1994,
respectively.
The Fund generated $532,834 and $722,907 of funds from operations, for the
purpose of determining cash available for distribution, during the quarter
ended September 30, 1995 and 1994, respectively and distributed 39% and 30% of
these amounts to partners during the third quarter of 1995 and 1994, respec-
8
FIDELITY LEASING INCOME FUND VIII, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
RESULTS OF OPERATIONS (Continued)
tively and 20% and 15% of these amounts to partners in October 1995 and 1994,
respectively. For the nine months ended September 30, 1995 and 1994, the Fund
generated $1,751,401 and $2,246,572 of funds from operations and distributed
48% and 39% of these amounts to partners during the nine months ended September
30, 1995 and 1994, respectively and 6% and 5% of these amounts to partners in
October 1995 and 1994, respectively.
ANALYSIS OF FINANCIAL CONDITION
During the nine months ended September 30, 1995 and 1994, the Fund pur-
chased $897,705 and $1,733,792, respectively, of equipment. The Fund will
continue to purchase equipment with cash available from operations which is not
distributed to partners.
The cash position of the Fund is reviewed daily and cash is invested on a
short-term basis.
The Fund's cash from operations is expected to continue to be adequate to
cover all operating expenses and contingencies during the next twelve month
period.
9
Part II: Other Information
FIDELITY LEASING INCOME FUND VIII, L.P.
September 30, 1995
Item 1. Legal Proceedings: Inapplicable.
Item 2. Changes in Securities: Inapplicable.
Item 3. Defaults Upon Senior Securities: Inapplicable.
Item 4. Submission of Matters to a Vote of Securities Holders: Inapplicable.
Item 5. Other Information: Inapplicable.
Item 6. Exhibits and Reports on Form 8-K:
a) Exhibits: EX-27
b) Reports on Form 8-K: A report on Form 8-K was filed with the
Securities and Exchange Commission on October 12, 1995 reporting
under Item 1.
10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the regis-
trant has duly caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.
FIDELITY LEASING INCOME FUND VIII, L.P.
11-10-95 By: P. Donald Mooney
________ _____________________________
Date P. Donald Mooney
President of
Fidelity Leasing Corporation
(Principal Operating Officer)
11-10-95 By: Marianne T. Schuster
________ _____________________________
Date Marianne T. Schuster
Vice President of
Fidelity Leasing Corporation
(Principal Financial Officer)
11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the regis-
trant has duly caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.
FIDELITY LEASING INCOME FUND VIII, L.P.
_______ _____________________________
Date P. Donald Mooney
President of
Fidelity Leasing Corporation
(Principal Operating Officer)
_______ _____________________________
Date Marianne T. Schuster
Vice President of
Fidelity Leasing Corporation
(Principal Financial Officer)
11
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 2,523,988
<SECURITIES> 0
<RECEIVABLES> 383,183
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,907,171
<PP&E> 9,369,502
<DEPRECIATION> 6,349,546
<TOTAL-ASSETS> 5,928,960
<CURRENT-LIABILITIES> 234,966
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 5,693,994
<TOTAL-LIABILITY-AND-EQUITY> 5,928,960
<SALES> 1,832,746
<TOTAL-REVENUES> 1,967,690
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,991,880
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (24,190)
<INCOME-TAX> 0
<INCOME-CONTINUING> (24,190)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (24,190)
<EPS-PRIMARY> (1.56)
<EPS-DILUTED> (1.56)
</TABLE>
