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 March 31, 1998
/ / 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.)
3 North Columbus Boulevard, Philadelphia, Pennsylvania 19106
_______________________________________________________________________________
(Address of principal executive offices) (Zip code)
(215) 574-1636
_______________________________________________________________________________
(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 10
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND VIII, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
March 31, December 31,
1998 1997
___________ ___________
Cash and cash equivalents $2,294,854 $2,022,967
Accounts receivable 77,929 154,812
Due from related parties 59,606 83,907
Equipment under operating leases
(net of accumulated depreciation
of $5,026,292 and $4,603,427,
respectively) 2,820,389 3,014,540
Equipment held for sale or lease 24,460 -
__________ __________
Total assets $5,277,238 $ 5,276,226
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 63,827 $ 82,510
Accounts payable and
accrued expenses 43,652 52,701
Due to related parties 4,396 7,918
__________ __________
Total liabilities 111,875 143,129
Partners' capital
5,165,363 5,133,097
__________ __________
Total liabilities and
partners' capital $5,277,238 $5,276,226
========== ==========
The accompanying notes are an integral part of these financial statements.
2
FIDELITY LEASING INCOME FUND VIII, L.P.
STATEMENTS OF OPERATIONS
For the three months ended March 31, 1998 and 1997
(Unaudited)
1998 1997
_________ _______
Income:
Rentals $ 543,106 $494,603
Interest 26,480 20,899
Gain on sale of equipment, net - 10,225
Other 534 575
_________ ________
570,120 526,302
_________ ________
Expenses:
Depreciation 425,412 357,781
Write-down of equipment to net
realizable value - 3,563
General and administrative 20,319 12,945
General and administrative to related
party 30,242 28,282
Management fee to related party 21,881 19,784
_________ ________
497,854 422,355
_________ ________
Net income $ 72,266 $103,947
========= ========
Net income per equivalent
limited partnership unit $ 5.35 $ 7.84
========= ========
Weighted average number of
equivalent limited partnership
units outstanding during the period 13,374 13,131
========= ========
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 three months ended March 31, 1998
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1998 $(8,536) 21,695 $5,141,633 $5,133,097
Cash distributions (400) - (39,600) (40,000)
Net income 723 - 71,543 72,266
_______ ______ __________ __________
Balance, March 31, 1998 $(8,213) 21,695 $5,173,576 $5,165,363
======= ====== ========== ==========
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 three months ended March 31, 1998 and 1997
(Unaudited)
1998 1997
__________ __________
Cash flows from operating activities:
Net income $ 72,266 $ 103,947
__________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 425,412 357,781
Write-down of equipment to net realizable value - 3,563
(Gain) loss on sale of equipment, net - (10,225)
(Increase) decrease in accounts receivable 76,883 5,726
(Increase) decrease in due from related parties 24,301 (10,917)
Increase (decrease) in lease rents paid
in advance (18,683) 96,053
Increase (decrease) in other, net (12,571) (13,881)
__________ __________
495,342 428,100
__________ __________
Net cash provided by operating activities 567,608 532,047
__________ __________
Cash flows from investing activities:
Acquisition of equipment (255,721) -
Proceeds from sale of equipment - 10,225
__________ __________
Net cash provided by (used in)
investing activities (255,721) 10,225
__________ __________
Cash flows from financing activities:
Distributions (40,000) (60,000)
__________ __________
Net cash used in financing activities (40,000) (60,000)
__________ __________
Increase in cash and cash equivalents 271,887 482,272
Cash and cash equivalents, beginning
of period 2,022,967 1,279,570
__________ __________
Cash and cash equivalents, end of period $2,294,854 $1,761,842
========== ==========
The accompanying notes are an integral part of these financial statements.
5
FIDELITY LEASING INCOME FUND VIII, L.P.
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
(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 1997 financial statements have been
reclassified to conform to the presentation in 1998.
1. EQUIPMENT LEASED
Equipment on lease consists primarily of computer equipment under operating
leases. The lessees have agreements with the manufacturer of the equipment
to provide maintenance for the leased equipment. The Fund's operating
leases are for initial lease terms of 11 to 58 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 determine 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,
$3,563 was charged to write-down of equipment to net realizable value for
the three months ended March 31, 1997. There was no charge to write-down
of equipment to net realizable for the three months ended March 31, 1998.
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 March 31, 1998 are as follows:
Years Ending December 31 Minimum Rentals
________________________ _______________
1998 $1,102,000
1999 731,000
2000 134,000
__________
$1,967,000
==========
Subsequent to March 31, 1998, the Fund purchased $127,070 of equipment,
representing a partial funding of equipment subject to an operating lease
with an initial lease term of 39 months. The future approximate minimum
rentals to be received on this noncancellable operating lease are $135,107
in 1998 and $202,660 in 1999, $202,660 in 2000 and $118,218 in 2001.
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 rental payments on 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. This management fee is
paid monthly only if and when the Limited Partners have received
distributions for the period from the initial closing through the end of
the most recent calendar quarter equal to a return for such period at a
rate of 11% per year on the aggregate amount paid for their units.
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. The payment of this sales
fee is deferred until the Limited Partners have received cash distributions
equal to the purchase price of their units plus an 11% cumulative
compounded priority return. Based on current estimates, it is not expected
that the Fund will be required to pay this fee to the General Partner.
Additionally, the General Partner and its parent company 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 parent company during the three months ended
March 31:
1998 1997
________ ________
Management fee $21,881 $19,784
Reimbursable costs 30,242 28,282
The Fund maintains its checking and investment accounts in Jefferson Bank,
a subsidiary of JeffBanks, Inc., in which the Chairman of Resource America,
Inc. serves as a director.
Amounts due from related parties at March 31, 1998 and December 31, 1997
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 to the Fund.
Amounts due to related parties at March 31, 1998 and December 31, 1997
represent monies due to the General Partner and/or its parent company for
the fees and costs mentioned above, as well as, rentals and sales proceeds
collected by the Fund on behalf of other affiliated funds.
3. CASH DISTRIBUTIONS
The General Partner declared and paid three cash distributions of $20,000
each subsequent to March 31, 1998 for the months ended January 31,
February 28 and March 31, 1998, to all admitted partners as of January 31,
February 28 and March 31, 1998.
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 $570,120 and
$526,302 for the three months ended March 31, 1998 and 1997, respectively.
Rental income from the leasing of equipment accounted for 95% and 94% of total
revenues for the first quarter of 1998 and 1997, respectively. The increase in
revenues is primarily attributable to the increase in rental income. In 1998,
rental income increased by approximately $112,000 because of rents generated
from equipment purchased since the first quarter of 1997. This increase,
however, was reduced by approximately $63,000 because of equipment which came
off lease and was re-leased at lower rental rates or sold.
Expenses were $497,854 and $422,355 for the three months ended March 31,
1998 and 1997, respectively. Depreciation expense comprised 85% of total
expenses for the first quarter of both 1998 and 1997. The increase in expenses
in 1998 is primarily related to the increase in depreciation expense resulting
from equipment purchases made since March 1997.
The Fund's net income was $72,266 and $103,947 for the three months ended
March 31, 1998 and 1997, respectively. The net income per equivalent limited
partnership unit, after income allocated to the General Partner, was $5.35 and
$7.84 based on a weighted average number of equivalent limited partnership
units outstanding of 13,374 and 13,131 for the three months ended March 31,
1998 and 1997, respectively.
The Fund generated $497,678 and $455,066 of cash from operations, for the
purpose of determining cash available for distribution, during the quarter
ended March 31, 1998 and 1997, respectively. There were no cash distributions
paid to partners during the first quarter of 1998 for the three months ended
March 31, 1998. However, $40,000 of cash distributions were paid to partners
during the first quarter of 1998 for the months of November and December of
1997. During the quarter ended March 31, 1997, 4% of the cash available from
operations for the three months ended March 31, 1997 was paid to partners.
Subsequent to March 31, 1998 and 1997, 12% and 9% of the cash available from
operations was paid to partners for the first quarter of 1998 and 1997,
respectively. For financial statement purposes, the Fund records cash
distributions to partners on a cash basis in the period in which they are paid.
ANALYSIS OF FINANCIAL CONDITION
During the three months ended March 31, 1998, the Fund purchased $255,721
of equipment. During the three months ended March 31, 1997, the Fund
made no purchases of equipment. The Fund will continue to purchase
equipment with cash available from operations which is not distributed to
partners.
Subsequent to March 31, 1998, the Fund purchased $127,070 of equipment for
lease.
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.
8
Part II: Other Information
FIDELITY LEASING INCOME FUND VIII, L.P.
March 31, 1998
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: None
b) Reports on Form 8-K: None
9
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.
5-14-98 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of F.L Partnership
Management, Inc.
(Principal Operating Officer)
5-14-98 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
10
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 2,294,854
<SECURITIES> 0
<RECEIVABLES> 137,535
<ALLOWANCES> 0
<INVENTORY> 0
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<PP&E> 7,871,141
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0
0
<COMMON> 0
<OTHER-SE> 5,165,363
<TOTAL-LIABILITY-AND-EQUITY> 5,277,238
<SALES> 543,106
<TOTAL-REVENUES> 570,120
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 497,854
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 72,266
<INCOME-TAX> 0
<INCOME-CONTINUING> 72,266
<DISCONTINUED> 0
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