<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------
FORM 10-Q/A
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1998 Commission File Number 0-21458
TELECOMMUNICATIONS INCOME FUND IX, L.P.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Iowa 42-1367356
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 Second Street S.E., Cedar Rapids, Iowa 52401
------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (319) 365-2506
Securities registered pursuant to Section 12(b) of the Act:
NONE
Securities registered pursuant to Section 12(g) of the Act:
Limited Partnership Interest (the "Units")
------------------------------------------
Title of Class
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 filings
requirements for the past 90 days.
Yes X No
--- ---
As of September 30, 1998, 67,662 Units were issued and outstanding. Based on the
book value of $95.40 per Unit, the aggregate market value at September 30, 1998
was $6,454,731.
<PAGE> 2
Introductory Note
This amendment on Form 10-Q/A amends the Registrant's Quarterly Report on Form
10-Q, as filed by the Registrant on November 12, 1998, and is being filed to
reflect the restatement of the Registrant's financial statements (the"
Restatement"). The Restatement reflects the financial statements for the
quarterly period ended September 30, 1998, under the liquidation basis of
accounting, pursuant to the Registrant's plan of liquidation. See Note E.
PAGE 2
<PAGE> 3
TELECOMMUNICATIONS INCOME FUND IX, L.P.
INDEX
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE
- -------------------------------- ----
<S> <C>
ITEM 1. Financial Statements (unaudited)
Statement of Net Assets - September 30, 1998, as restated (Liquidation Basis)
and December 31, 1997 (Going Concern Basis) 4
Statement of Income and Comprehensive Income (Going Concern Basis) -
three months ended September 30, 1997 5
Statements of Income and Comprehensive Income (Going Concern Basis) -
three months ended March 31, 1998 and
nine months ended September 30, 1997 6
Statement of Changes in Net Assets, as restated (Liquidation Basis) -
three and six months ended September 30, 1998 7
Statements of Cash Flows - nine months ended
September 30, 1998 and nine months ended September 30, 1997 8
Notes to financial statements 9
ITEM 2. Management's discussion and analysis of financial condition and results of operations 11
PART II. OTHER INFORMATION
ITEM 1. Legal proceedings 14
SIGNATURES 15
</TABLE>
PAGE 3
<PAGE> 4
TELECOMMUNICATIONS INCOME FUND IX, L.P.
STATEMENTS OF NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
(Liquidation Basis) (Going Concern Basis)
September 30, 1998
As Restated (Note E) December 31, 1997
-------------------- -----------------
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 425,670 $ 458,893
Available-for-sale security 2,087 65,389
Not readily marketable securities 191,600 -0-
Net investment in direct financing leases
and notes receivable 5,231,808 11,513,511
Allowance for possible losses -0- (1,922,056)
------------ ------------
Direct financing leases and notes receivable, net (Note B) 5,231,808 9,591,455
Equipment leased under operating leases, less
accumulated depreciation of $261,600 at
December 31, 1997 (Note C) 840,997 1,041,197
Equipment held for sale 18,436 51,000
Intangibles, less accumulated amortization of
$9,258 at December 31, 1997 -0- 48,582
Other assets 33,429 384,060
------------ ------------
TOTAL ASSETS 6,744,027 11,640,576
------------ ------------
LIABILITIES
Line of credit agreement (Note D) -0- 50,557
Trade accounts payable 4,290 17,336
Due to affiliates 2,696 96,472
Accrued expenses and other liabilities 41,768 202,272
Lease security deposits 190,293 365,752
Reserve for estimated costs during the
period of liquidation 351,505 -0-
------------ ------------
Total Liabilities 590,552 732,389
------------ ------------
NET ASSETS $ 6,153,475 $ 10,908,187
============ ============
</TABLE>
See accompanying notes.
4
<PAGE> 5
TELECOMMUNICATIONS INCOME FUND IX, L.P.
STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(GOING CONCERN BASIS) (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,1997
------------------
<S> <C>
INCOME:
Lease income $480,725
Interest income 5,150
Gain on lease terminations 468,399
Other 27,314
--------
Total Income 981,588
--------
EXPENSES:
Management fees 74,856
Administrative services 21,000
Interest 40,634
Professional fees 27,000
Provision for possible losses 18,360
Depreciation 76,254
Other 44,833
--------
Total expenses 302,937
--------
Net income 678,651
Other comprehensive loss:
Unrealized loss on available
for sale security -0-
--------
Comprehensive income $678,651
========
Net income per partnership unit $ 10.00
========
Weighted average partnership units outstanding 67,879
See accompanying notes
</TABLE>
5
<PAGE> 6
TELECOMMUNICATIONS INCOME FUND IX, L.P.
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(GOING CONCERN BASIS) (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, 1998 SEPTEMBER 30, 1997
------------------ ------------------
<S> <C> <C>
INCOME:
Lease income $ 356,900 $1,660,200
Interest income 11,544 8,300
Gain on lease terminations 8,808 486,921
Other 24,768 33,476
---------- ----------
Total Income 402,020 2,188,897
---------- ----------
EXPENSES:
Management fees 48,928 223,193
Administrative services 23,866 66,822
Interest 16,817 136,560
Professional fees 31,748 68,131
Provision for possible losses 64,711 57,283
Depreciation 76,255 230,808
Other 45,572 85,028
---------- ----------
Total expenses 307,897 867,825
---------- ----------
Net income 94,123 1,321,072
Other comprehensive income (loss):
Unrealized gain (loss) on available
for sale security (20,869) -0-
---------- ----------
Comprehensive income $ 73,254 $1,321,072
========== ==========
Net income per partnership unit $ 1.39 $ 19.46
========== ==========
Weighted average partnership units outstanding 67,742 67,892
See accompanying notes.
</TABLE>
6
<PAGE> 7
TELECOMMUNICATIONS INCOME FUND IX, L.P.
STATEMENTS OF CHANGES IN NET ASSETS
(LIQUIDATION BASIS) AS RESTATED (NOTE E)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1998 SEPTEMBER 30, 1998
------------------ ------------------
<S> <C> <C>
NET ASSETS AS OF BEGINNING OF PERIOD $ 8,907,772 $ 10,288,026
Income from direct financing leases 228,268 447,801
Interest and other income 57,157 91,849
Change in estimate of liquidation value of net assets,
primarily equipment under operating lease (79,818) (144,941)
Distributions to partners ($43.59 for quarter
And $66.76 for six month period) (2,950,000) (4,519,356)
Withdrawals of limited partners (9,904) (9,904)
------------ ------------
NET ASSETS AS OF SEPTEMBER 30, 1998 $ 6,153,475 $ 6,153,475
============ ============
</TABLE>
See accompanying notes.
7
<PAGE> 8
TELECOMMUNICATIONS INCOME FUND IX, L.P.
STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED NINE MONTHS ENDED
OPERATING ACTIVITIES SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
------------------ ------------------
<S> <C> <C>
Change in net assets excluding distributions,
redemptions, and liquidation adjustments $ 417,051 $ 1,321,072
Adjustments to reconcile to net cash
provided by operating activities:
Amortization of deferred organization costs 1,038 3,115
Provision for possible losses 64,711 57,283
Depreciation 75,566 230,808
Gain on lease terminations (8,808) (486,921)
Changes in operating assets and liabilities:
(Increase) decrease in other assets 58,927 84,753
Increase (decrease) in trade accounts payable
excluding equipment purchase cost accrued (13,046) 49,266
Decrease in due to affiliates (93,776) (21,559)
Increase (decrease) in accrued expenses (160,504) (52,952)
----------- -----------
Net cash provided by operating activities 341,159 1,184,865
----------- -----------
INVESTING ACTIVITIES
Acquisitions of, and purchases of equipment
for direct financing leases (1,085,333) (3,200,429)
Repayments of direct financing leases 1,322,741 2,474,325
Proceeds from sale of direct financing leases 4,652,930 2,450,406
Advances on notes receivable -0- (165,000)
Repayments of notes receivable -0- 2,495
Net security deposits repaid (175,459) (7,909)
----------- -----------
Net cash from investing activities 4,714,879 1,553,888
----------- -----------
FINANCING ACTIVITIES
Distributions paid to partners (5,025,276) (1,527,565)
Redemption of partnership units (13,428) (5,175)
Repayment of note payable -0- (845,189)
Net proceeds from (payments) on line-of-credit borrowings (50,557) (377,072)
----------- -----------
Net cash from financing activities (5,089,261) (2,755,001)
----------- -----------
Net decrease in cash and cash equivalents (33,223) (16,248)
Cash and cash equivalents at beginning of period 458,893 497,144
----------- -----------
Cash and cash equivalents at end of period $ 425,670 $ 480,896
=========== ===========
SUPPLEMENTAL DISCLOSURES
Cash paid during the period for interest $ 22,220 $ 149,623
Non-cash activities:
North American miscellaneous receivable write off (291,704) 0
North American security deposits written off 42,207 0
Notes receivable converted to investment
in not readily marketable securities 191,600 0
Crescent lease buyout of Digital leases 1,860,784 0
See accompanying notes
</TABLE>
8
<PAGE> 9
TELECOMMUNICATIONS INCOME FUND IX, L.P.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1998
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the nine months ended September 30, 1998 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 1998. For further information, refer to the financial statements
and footnotes thereto included in the Partnership's annual report on Form 10-K
for the year ended December 31, 1997.
On May 1, 1998, the Partnership ceased reinvestment in equipment and leases and
began the orderly liquidation of the Partnership in accordance with the
partnership agreement. As a result, the unaudited financial statements as of and
for the three and six months ended September 30, 1998 have been restated from
amounts previously reported to present the financial statements under the
liquidation basis of accounting. Under the liquidation basis of accounting,
assets are stated at their estimated net realizable values and liabilities are
stated at their anticipated settlement amounts. See Note E.
NOTE B -- NET INVESTMENT IN DIRECT FINANCING LEASES
Components of the net investment in direct financing leases are as follows:
<TABLE>
<CAPTION>
(Liquidation Basis) (Going Concern Basis)
September 30, 1998 December 31, 1997
------------------ -----------------
<S> <C> <C>
Lease payments receivable $ 5,607,324 $12,427,455
Estimated unguaranteed residual values of
leased equipment 630,042 1,192,611
Unearned lease income (1,152,809) (2,571,275)
Unamortized initial direct costs 18,978 30,028
Notes receivable 218,057 434,692
Allowance for possible losses (140,379) (1,922,056)
Adjustment to estimated net realizable value 50,595 - 0 -
----------- ----------
Net investment in direct financing leases
and notes receivable $ 5,231,808 $9,591,455
=========== ==========
</TABLE>
9
<PAGE> 10
NOTE C - EQUIPMENT LEASED UNDER OPERATING LEASES
In March, 1996, the Partnership exercised its right to manage the assets
leased to In-Touch Communications, Inc. due to non-payment of lease receivables.
The Partnership entered into a management agreement with Custom Communications
Network ("CCN") to operate the route. Under this agreement, CCN was to pay the
Partnership an amount based on a percent of CCN's monthly net cash proceeds from
operating the route. The net investment in this lease at that time approximated
$1,370,000. In 1996, a charge of $284,308 was made to the loss reserve to
reflect what management estimated would not be recoverable under this agreement.
Pursuant to the agreement, CCN used cash flow to add pay telephones to the
business. During the course of the lease, the number of payphones subject to
this lease increased from approximately 330 to approximately 582 at September
30, 1998. Based upon the normal industry per installed pay telephone, the
$840,997 carrying value of this lease is believed to be recoverable. CCN
continues to operate the phone route as an operating lease described above.
Until a definitive agreement or purchase commitment is received by the
Partnership for the sale of these assets, it will be carried as an operating
lease. To date, the Partnership and CCN are actively pursuing the sale of the
phone base with two interested parties. Additionally, two other companies have
contacted the Partnership regarding their interest should a sale not be
completed. Correspondence has been sent to CCN regarding the Partnership's
interest in completing a sale by year end.
NOTE D - CREDIT ARRANGEMENTS
The Partnership had a line-of-credit agreement with a bank that expired April
30, 1998. The balance due on the agreement was fully paid off and will not be
renewed.
NOTE E - RESTATEMENT
Subsequent to the issuance of the Partnership's Form 10-Q for the quarter ended
September 30, 1998, the Partnership's management determined that since the
Partnership had begun the orderly liquidation of Partnership assets on May 1,
1998, prior to the issuance of the first quarter Form 10-Q, the Partnership
should have adopted the liquidation basis of accounting as of March 31, 1998. As
a result the financial statements have been restated as of March 31, 1998 from
the going concern (historical cost) basis of accounting to reflect the net
assets of the Partnership under the liquidation basis of accounting.
Accordingly, assets have been valued at estimated net realizable value and
liabilities include estimated costs associated with carrying out the plan of
liquidation.
10
<PAGE> 11
The net adjustment as of September 30, 1998 required to convert from the going
concern (historical cost) basis to the liquidation basis of accounting was a
decrease in carrying value of $301,256. Significant increases (decreases) in the
carrying value of net assets are summarized as follows:
<TABLE>
<S> <C>
Partners' equity as previously reported (going concern basis) $ 6,454,731
-----------
Increase to reflect net realizable value of net
investment in direct financing leases 50,595
Write-off of intangible assets (346)
Record estimated liabilities associated with
carrying out the liquidation (351,505)
-----------
Net decrease in carrying value (301,256)
-----------
Net assets as restated (liquidation basis) $ 6,153,475
===========
</TABLE>
A summary of the significant effects of the restatement is as follows:
<TABLE>
<CAPTION>
As
Previously As
Reported Restated
----------- -----------
<S> <C> <C>
AT SEPTEMBER 30, 1998
Total Assets $ 6,693,778 $ 6,744,027
Total Liabilities 239,047 590,552
Total Partners' Equity 6,454,731 -0-
Net Assets in Liquidation -0- 6,153,475
</TABLE>
The valuation of assets and liabilities necessarily requires many estimates and
assumptions and there are uncertainties in carrying out the liquidation of the
Partnership's net assets. The actual value of the liquidating distributions will
depend on a variety of factors, including the actual timing of distributions to
partners. The actual amounts are likely to differ from the amounts presented in
the financial statements.
11
<PAGE> 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
<TABLE>
<CAPTION>
RESULTS OF OPERATIONS Three Months Ended Nine Months Ended
September 30 September 30
1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7
------- ------- ------- -------
<S> <C> <C> <C> <C>
Description:
Lease income $ 228,268 $ 480,725 $ 804,701 $1,660,200
Gain on lease terminations 222,913 468,399 397,724 486,921
Management fees -0- 74,856 58,829 223,193
Interest expense -0- 40,634 22,220 136,560
Professional Fees 70,641 27,000 138,052 68,131
Provision for possible losses -0- 18,360 64,711 57,283
</TABLE>
On May 1, 1998, the Partnership ceased reinvestment in equipment and leases and
began the orderly liquidation of the Partnership in accordance with the
partnership agreement. As a result, the unaudited financial statements as of and
for the three and six months ended September 30, 1998 have been restated from
amounts previously reported to present the financial statements under the
liquidation basis of accounting. Under the liquidation basis of accounting,
assets are stated at their estimated net realizable values and liabilities are
stated at their anticipated settlement amounts. Initial leases are expiring. The
Partnership is required to dissolve and distribute all of its assets no later
than December 31, 1999, or earlier, upon the occurrence of certain events. As a
result, both the size of the Partnership's portfolio and the amount of lease
income are declining.
Since the Partnership is in its liquidation phase, management fees paid to the
General Partner have been discontinued. Since the line of credit has been paid
off, interest expense has declined to zero.
The Partnership incurs professional fees each year for the audit of its
financial records and for the preparation of its tax return. During the third
quarter of 1998, the Partnership incurred approximately $47,000 of professional
fees associated with a securitization effort that failed to materialize.
The Partnership was accruing a provision for possible losses based on 1.5% of
equipment purchases. The Partnership currently has a loss reserve of $140,379 or
2.6% of the lease and note portfolios. Management will continue to monitor the
remaining portfolio and adjust the loss reserve if needed.
The Partnership received 22,260 shares of common stock of Phonetel Corporation
as part of a lease financing agreement in 1997. The Partnership has been valuing
these shares at market. Due to operational losses sustained by Phonetel, the
market value of Phonetel's common stock has decreased significantly, resulting
in an unrealized loss of approximately $78,000 as of September 30, 1998.
As previously discussed in the Partnership's 10-K report for 1997, the General
Partner provided for a specific loss reserve of $1,596,739 at December 31, 1997,
equal to the carrying value of the assets leased to North American
Communications Group, Inc. The Partnership foreclosed on these assets in
February, 1998 . As a result, the assets were removed from the Partnership's
books and charged to the specific reserve established at December 31, 1997. The
Partnership will continue to attempt to sell these assets and any amounts
received through such efforts will be credited as a recovery of previous
charges.
12
<PAGE> 13
Lease payments receivable of 31 or more days past due amounted to $86,070
(contract balance remaining of $1,295,463) at September 30, 1998. These
delinquent payments represent 1.53% of the Partnership's lease payments
receivable. The General Partner continues to monitor these leases and will take
whatever steps are necessary to protect the Partnership's interest in these
assets.
As of September 30, 1998, there were eight customers with lease payments of
$19,645 over 90 days past due. When payments on a customer's account are past
due more than 90 days, the Partnership discontinues recognizing income on those
customer's accounts. The contract balance remaining on those accounts was
$590,579. The General Partner is monitoring these contracts and has determined
the Partnership's investment in these contracts is sufficiently collateralized.
The Partnership recognizes that the arrival of the Year 2000 poses a unique
challenge to the ability of all systems to recognize the date change from
December 31, 1999 to January 1, 2000 and, like other companies, has assessed its
computer applications and business processes to provide for their continued
functionality. An assessment of the readiness of external entities with which it
interfaces, such as vendors, counterparties, customers, payment systems, and
others, is ongoing. The Partnership does not expect the cost to address the Year
2000 to be material.
The Partnership has determined that the software it utilizes in its operations
is compatible with the Year 2000. The Partnership has not yet fully determined
whether the Year 2000 issue has been addressed by all of its customers. If the
Partnership's customers have not addressed this issue, it could lead to
non-payments of amounts owed to the Partnership. The Partnership has contacted
all of its customers regarding this issue. The customers contacted have
indicated various stages of readiness. The Partnership will continue to
determine customer Year 2000 compliance by follow-up with customers who have
indicated non-compliance.
<TABLE>
<CAPTION>
LIQUIDITY AND CAPITAL RESOURCES Nine Months Ended
September 30, 1998 September 30, 1997
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Major Cash Sources:
Principal portion of lease payments received $1,322,741 $2,414,325
Proceeds received on sale of leases 4,652,930 2,450,406
Major Cash Uses:
Purchase of equipment and leases 1,085,333 3,200,429
Distributions to partners 5,025,276 1,527,565
Net payments on debt 50,557 377,072
</TABLE>
Proceeds received from the liquidation of a portion of the lease portfolio have
been used to pay off existing debt and fund distributions to investors.
13
<PAGE> 14
Effective May 1, 1998, the Partnership moved from the operating phase of its
existence to the liquidation phase. Pursuant to the Partnership Agreement,
operating distributions of 12% were discontinued and liquidation distributions
have begun. No further lease contracts will be originated. Capital liquidating
distributions began in May and will continue until all assets are liquidated.
All payoffs on any leases will be distributed as they are received. As any other
remaining assets are sold and ongoing lease payments are received, all of the
cash received, less expenses to operate the Partnership, will be distributed to
investors as capital reductions. Since May 1, 1998 through September 30, 1998,
the Partnership funded liquidating distributions of $4,350,000 to investors as
capital reductions.
The total return on capital over a leasing partnership's life can only be
determined at the termination of the Partnership, after all the residual cash
flows have been realized. However, all liquidating distributions of the Partners
will be a return of capital.
The General Partner currently anticipates that the Partnership will generate
cash flow from rentals and equipment sales through December 1999, which should
provide sufficient cash to enable the Partnership to meet its current operating
requirements and to fund liquidating distributions of limited partners.
PART II
Item 1. Legal Proceedings
As reported in the Partnership's 10-K filing for 1997, a foreclosure proceeding
was filed on February 20, 1998 by the Partnership and Telecommunications Income
Fund X, L.P. against the North American Communication Group, Inc. ("NACG").
On February 20, 1998, the Partnership filed a Petition to Foreclose Security
Interests in the amount of $1,862,388 against NACG, CWC Communications, Inc.,
North American Communications Corporation (Missouri) d/b/a North American
Communications of Georgia, Inc., North American Communications of Mississippi,
Incorporated, North American Communications Group, Inc. d/b/a North American
Communications of Louisiana, Inc. Troy P. Campbell, Sr. as Guarantor and Archie
W. Welch, Jr. as Guarantor, in the Iowa District Court for Linn County located
in Cedar Rapids, Iowa. The Defendants appeared in court and asked for additional
time to file their answer, which was granted by the court.
In May 1998, Defendants filed a motion to Dismiss for Lack of Personal
Jurisdiction, which was opposed by the Plaintiff, TIFIX. A Hearing was held July
31, 1998, in order for each side to argue the Motion before the Court. In
August, the Court ruled that it had personal jurisdiction against the corporate
defendants, but that the Court did not have jurisdiction against the individual
Guarantors. As a result of said ruling, the Plaintiff TIFIX filed a Notice of
Appeal on September 14, 1998 and a Brief in support of that Notice will be filed
in the very near future.
The corporate defendants filed an Answer denying the allegations in the
Petition. Discovery is now going forward in the litigation against the corporate
defendants at the same time as the Appeal is moving forward against the
individual Guarantors.
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TELECOMMUNICATIONS INCOME FUND IX, L.P.
(Registrant)
Date: April 1, 1999 Ronald O. Brendengen/s/
--------------------------------------
Chief Financial Officer, Treasurer
Date: April 1, 1999 Daniel P. Wegmann/s/
--------------------------------------
Daniel P. Wegmann, Controller
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED FINANCIAL STATEMENTS OF TELECOMMUNICATIONS INCOME FUND IX, L.P. AS OF
SEPTEMBER 30, 1998, THE THREE MONTHS ENDED SEPTEMBER 30, 1998, AND THE NINE
MONTHS ENDED SEPTEMBER 30, 1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 425,670
<SECURITIES> 193,687
<RECEIVABLES> 5,231,808
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 1,154,462
<DEPRECIATION> (261,600)
<TOTAL-ASSETS> 6,744,027
<CURRENT-LIABILITIES> 590,552
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,153,475<F1>
<TOTAL-LIABILITY-AND-EQUITY> 6,153,475<F1>
<SALES> 402,020<F2>
<TOTAL-REVENUES> 402,020<F2>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 226,369<F2>
<LOSS-PROVISION> 64,711<F2>
<INTEREST-EXPENSE> 16,817<F2>
<INCOME-PRETAX> 94,123<F2>
<INCOME-TAX> 0
<INCOME-CONTINUING> 94,123<F2>
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 94,123<F2>
<EPS-PRIMARY> 1.39<F3>
<EPS-DILUTED> 1.39<F3>
<FN>
<F1>Net Assets
<F2>For three months ending March 31, 1998; after that time, the Partnership began
liquidation basis accounting (see audited financial statements).
<F3>Net Income(Loss) per Partnership Unit
</FN>
</TABLE>
