Form 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
|X| Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the quarterly period ended June 30, 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 0-21552
ATEL Cash Distribution Fund IV, L.P.
(Exact name of registrant as specified in its charter)
California 94-3145429
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104 (
Address of principal executive offices)
Registrant's telephone number, including area code: (415)989-8800
Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes |X|
No |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
<PAGE>
Part I FINANCIAL INFORMATION
Item 1. Financial Statements.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
BALANCE SHEET
JUNE 30, 1998
(Unaudited)
ASSETS
Cash and cash equivalents $1,674,068
Accounts receivable 295,781
Investments in leases 24,524,492
----------------
$26,494,341
================
LIABILITIES AND PARTNERS' CAPITAL
Non-recourse debt $5,804,896
Accounts payable:
General partners 30,337
Other 594,843
Accrued interest payable 31,282
Unearned operating lease income 435,458
----------------
Total liabilities 6,896,816
Partners' capital:
General partners 113,402
Limited partners 19,484,123
----------------
Total partners' capital 19,597,525
----------------
$26,494,341
================
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
INCOME STATEMENTS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Six Months Three Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
Revenues:
Lease revenues:
<S> <C> <C> <C> <C>
Operating leases $1,906,135 $3,911,379 $1,001,732 $1,615,492
Direct financing leases 565,799 567,157 270,191 275,030
Leveraged leases 93,742 124,026 46,870 62,013
Gain on sale of assets 48,343 1,104,635 17,211 577,280
Interest income 59,687 16,958 26,248 6,716
Other income 4,093 1,142 1,051 -
---------------- ---------------- ---------------- ----------------
2,677,799 5,725,297 1,363,303 2,536,531
Expenses:
Depreciation 1,086,519 2,747,687 529,067 1,191,244
Equipment and incentive management fees 265,280 413,307 155,199 208,282
Interest 251,740 681,579 123,328 248,204
Administrative cost reimbursements 119,085 140,256 40,287 70,355
Amortization 117,593 513,600 61,261 321,582
Other 59,228 86,793 41,134 66,388
Provision for losses 13,145 57,231 - 25,343
Professional fees 8,369 15,512 5,231 10,641
---------------- ---------------- ---------------- ----------------
1,920,959 4,655,965 955,507 2,142,039
---------------- ---------------- ---------------- ----------------
Net income $756,840 $1,069,332 $407,796 $394,492
================ ================ ================ ================
Net income:
General partners $7,568 $10,693 $4,078 $3,945
Limited partners 749,272 1,058,639 403,718 390,547
---------------- ---------------- ---------------- ----------------
$756,840 $1,069,332 $407,796 $394,492
================ ================ ================ ================
Net income per limited partnership unit $0.10 $0.14 $0.05 $0.05
Weighted average number of units
outstanding 7,487,350 7,487,350 7,487,350 7,487,350
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
SIX MONTH PERIOD ENDED JUNE 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners General
Units Amount Partners Total
<S> <C> <C> <C> <C>
Balance December 31, 1997 7,487,350 $23,976,764 $105,834 $24,082,598
Distributions to limited partners (5,241,913) - (5,241,913)
Net income 749,272 7,568 756,840
---------------- ---------------- ---------------- ----------------
Balance June 30, 1998 7,487,350 $19,484,123 $113,402 $19,597,525
================ ================ ================ ================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
STATEMENTS OF CASH FLOWS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Six Months Three Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
Operating activities:
<S> <C> <C> <C> <C>
Net income $756,840 $1,069,332 $407,796 $394,492
Adjustments to reconcile net income to net
cash provided by (used in) operations:
Depreciation 1,086,519 2,747,687 529,067 1,191,244
Amortization 117,593 513,600 61,261 321,582
Leveraged lease income (93,742) (124,026) (93,742) (124,026)
Gain on sale of assets (48,343) (1,104,635) (17,211) (577,280)
Provision for losses 13,145 57,231 - 25,343
Changes in operating assets and liabilities:
Accounts receivable 124,157 (3,055,606) 44,869 (3,174,611)
Accounts payable, general partner (165,490) (11,396) (211,813) (4,127)
Accounts payable, other 549,983 (8,395) 575,791 12,781
Accrued interest payable (634) (43,091) 2,659 (11,536)
Deposits due to lessees - (97,772) - -
Unearned operating lease income (54,865) (147,560) (4,385) (154,464)
---------------- ---------------- ---------------- ----------------
Net cash from (used in) operations 2,285,163 (204,631) 1,294,292 (2,100,602)
---------------- ---------------- ---------------- ----------------
Investing activities:
Proceeds from sales of assets 496,550 14,368,852 365,874 9,605,818
Reduction in investment in direct financing
leases 1,279,275 1,426,678 612,437 696,809
Reduction in investment in leveraged leases - 177,571 46,872 82,492
Purchase of equipment on direct financing
leases - (77,518) - -
Purchase of equipment on operating leases - (42,227) - -
---------------- ---------------- ---------------- ----------------
Net cash provided by investing activities 1,775,825 15,853,356 1,025,183 10,385,119
---------------- ---------------- ---------------- ----------------
</TABLE>
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
STATEMENTS OF CASH FLOWS
(Continued)
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Six Months Three Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
Financing activities:
<S> <C> <C> <C> <C>
Payments of non-recourse debt (1,135,103) (9,850,695) (574,080) (6,213,264)
Distributions to limited partners (5,241,913) (5,241,157) (2,623,308) (2,620,581)
Repayment of line of credit - (1,000,000) - (500,000)
---------------- ---------------- ---------------- ----------------
Net cash used by financing activities (6,377,016) (16,091,852) (3,197,388) (9,333,845)
---------------- ---------------- ---------------- ----------------
Net decrease in cash and cash
equivalents (2,316,028) (443,127) (877,913) (1,049,328)
Cash at beginning of period 3,990,096 696,421 2,551,981 1,302,622
---------------- ---------------- ---------------- ----------------
Cash at end of period $1,674,068 $253,294 $1,674,068 $253,294
================ ================ ================ ================
Supplemental disclosures of cash flow information:
Cash paid during period for interest $252,374 $724,670 $120,669 $200,434
================ ================ ================ ================
Supplemental schedule of non-cash transactions:
Operating lease assets reclassified to assets
held or sale or lease $133,552
================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
1. Summary of significant accounting policies:
Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Organization and partnership matters:
ATEL Cash Distribution Fund IV, L.P. (the Partnership), was formed under the
laws of the State of California on September 19, 1991, for the purpose of
acquiring equipment to engage in equipment leasing and sales activities.
Contributions in the aggregate of $600 were received as of October 8, 1991, $100
of which represented the General Partner's continuing interest, and $500 of
which represented the Initial Limited Partners' capital investment.
Upon the sale of the minimum amount of Units of Limited Partnership interest
(Units) of $1,200,000 and the receipt of the proceeds thereof on March 6, 1992,
the Partnership commenced operations. The Fund or the General Partner on behalf
of the Fund, will incur costs in connection with the organization, registration
and issuance of the Units. The amount of such costs to be born by the Fund is
limited by certain provisions in the Agreement of Limited Partnership.
As of February 3, 1993, the Fund had received subscriptions for 7,500,000
Limited Partnership Units ($75,000,000) in addition to the Initial Limited
Partners' 50 Units and the Partnership's offering was closed.
The Partnership's business consists of leasing various types of equipment. As of
June 30, 1998, the original terms of the leases were from six months to eight
years.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
3. Investment in leases:
The Partnership's investment in leases consists of the following:
<TABLE>
<CAPTION>
Depreciation
Expense or Reclass-
December 31, Amortization ifications & June 30,
1997 Additions of Leases Dispositions 1998
---- --------- --------- -------------- ----
<S> <C> <C> <C> <C> <C>
Net investment in operating
leases $13,166,852 ($1,086,519) ($961,876) $11,118,457
Net investment in direct
financing leases 8,803,127 (1,279,275) (508,328) 7,015,524
Net investment in leveraged
leases 4,722,893 93,742 - 4,816,635
Residual value interests 582,057 - - 582,057
Equipment held for lease 131,158 - 1,021,997 1,153,155
Initial direct costs, net of
accumulated amortization
of $1,022,825 in 1997 and
$890,638 in 1998 597,256 (117,593) - 479,663
Reserve for losses (627,854) ($13,145) - - (640,999)
------------------- ---------------- ---------------- ---------------- ----------------
$27,375,489 ($13,145) ($2,389,645) ($448,207) $24,524,492
=================== ================ ================ ================ ================
</TABLE>
The following schedule provides an analysis of the Partnership's investment in
property on operating leases by major classifications as of December 31, 1997,
acquisitions and dispositions during the quarters ended March 31, 1998 and June
30, 1998 and as of June 30, 1998.
<TABLE>
<CAPTION>
Acquisitions &
December 31, Dispositions June 30,
1997 1st Quarter 2nd Quarter 1998
---- ----------- ----------- ----
<S> <C> <C> <C> <C>
Construction equipment $4,985,297 $4,985,297
Printing 4,393,249 4,393,249
Transportation 5,412,784 ($1,861,391) ($490,466) 3,060,927
Corporate aircraft 2,470,969 - - 2,470,969
Materials handling 2,389,826 - - 2,389,826
Manufacturing 1,587,670 - - 1,587,670
Ground support equipment 1,127,988 - - 1,127,988
Data processing 851,561 - (165,767) 685,794
Other 2,054,576 (1,495,048) - 559,528
Office equipment 216,080 - - 216,080
---------------- ---------------- ---------------- ----------------
25,490,000 (3,356,439) (656,233) 21,477,328
Less accumulated depreciation (12,323,148) 1,983,425 (19,148) (10,358,871)
---------------- ---------------- ---------------- ----------------
$13,166,852 ($1,373,014) ($675,381) $11,118,457
================ ================ ================ ================
</TABLE>
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
3. Investments in leases (continued):
All of the property on operating leases was acquired during 1992, 1993, 1994,
1995, 1996 and 1997.
At June 30, 1998, the aggregate amounts of future minimum lease payments are as
follows:
Year ending Direct
December 31, Financing Operating Total
1998 $1,552,209 $1,600,932 $3,153,141
1999 2,551,940 2,575,936 5,127,876
2000 1,638,488 1,748,449 3,386,937
2001 1,128,109 1,195,808 2,323,917
2002 557,077 857,288 1,414,365
Thereafter 23,660 625,836 649,496
---------------- ---------------- ----------------
$7,451,483 $8,604,249 $16,055,732
================ ================ ================
4. Non-recourse debt:
Notes payable to financial institutions are due in varying monthly, quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments of lease payments and pledges of the assets which were purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
6.25% to 10.57%.
Future minimum principal payments of long-term non-recourse debt as of June 30,
1998 are as follows:
Year ending
December 31, Principal Interest Total
1998 $1,170,183 $203,239 $1,373,422
1999 2,045,296 287,129 2,332,425
2000 1,535,205 151,656 1,686,861
2001 697,282 56,062 753,344
2002 356,930 22,731 379,661
---------------- ---------------- ----------------
$5,804,896 $720,817 $6,525,713
================ ================ ================
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
5. Related party transactions:
The terms of the Agreement of Limited Partnership provide that the General
Partners and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Partnership.
The General Partners and/or Affiliates earned the following fees, commissions
and reimbursements, pursuant to the Limited Partnership Agreement as follows:
1998 1997
---- ----
Reimbursement of administrative costs $119,085 $140,256
Incentive and equipment management fees 265,280 413,307
---------------- ----------------
$384,365 $553,563
================ ================
The amounts above are gross amounts incurred by the General Partners and/or
Affiliates, including commissions to broker-dealers for the sales of Partnership
Units.
6. Partner's capital:
The Fund is authorized to issue up to 7,500,000 Units of Limited Partnership
interest in addition to the Initial Limited Partners.
The Fund's Net Profits, Net Losses and Tax Credits are to be allocated 99% to
the Limited Partners and 1% to the General Partners.
As more fully described in the Agreement of Limited Partnership, available Cash
from Operations and Cash from Sales or Refinancing shall be distributed as
follows:
First, 5% of Distributions of Cash from Operations to the General Partner
as Incentive Management Fees.
Second, the balance to the Limited Partners until the Limited Partners have
received aggregate Distributions, as defined, in an amount equal to
their Original Invested Capital, as defined, plus a 10% per annum
cumulative (compounded daily) return on their Adjusted Invested
Capital, as defined.
Third, the General Partner will receive as Incentive Management Fees, the
following:
(A) 10% of remaining Cash from Operations, as defined,
(B) 15% of remaining Cash from Sales or Refinancing, as defined.
Fourth, the balance to the Limited Partners.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(Unaudited)
7. Line of credit:
The Partnership participates with the General Partner and certain of its
Affiliates in a $90,000,000 revolving credit agreement with a group of financial
institutions which expires on October 28, 1998. The agreement includes an
acquisition facility to be used by the Partnership and Affiliates to provide
bridge financing for assets on leases. Draws on the acquisition facility by any
individual borrower are secured only by that borrower's assets, including
equipment and related leases.
At June 30, 1998, the Partnership had no borrowings under the line of credit.
The credit agreement includes certain financial covenants applicable to each
borrower. The Partnership was in compliance with its covenants as of June 30,
1998.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capital Resources and Liquidity
Funds which have been received, but which have not yet been invested in leased
equipment, are invested in interest-bearing accounts or high-quality/short-term
commercial paper.
The Partnership's primary source of liquidity during 1998 were lease revenues,
proceeds from the sales of lease assets and borrowings under the line of credit.
The liquidity of the Partnership will vary in the future, increasing to the
extent cash flows from leases exceed expenses, and decreasing as lease assets
are acquired, as distributions are made to the limited partners and to the
extent expenses exceed cash flows from leases.
The Partnership currently has available adequate reserves to meet contingencies,
but in the event those reserves were found to be inadequate, the Partnership
would likely be in a position to borrow against its current portfolio to meet
such requirements. The general partner envisions no such requirements for
operating purposes.
The Partnership participates with the General Partner and certain of its
affiliates in a $90,000,000 revolving line of credit with a financial
institution. The line of credit expires on October 28, 1998.
As of June 30, 1998, the Partnership had borrowed approximately $38,342,000,
with a remaining unpaid balance of $5,804,896. Borrowings are to be non-recourse
to the Partnership, that is, the only recourse of the lender will be to the
equipment or corresponding lease acquired or secured with the loan proceeds. The
general partner expects that aggregate borrowings in the future will be
approximately 40% of aggregate equipment cost. In any event, the Agreement of
Limited Partnership limits such borrowings to 40% of the total cost of
equipment, in aggregate.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. As of June 30, 1998, there were no such
commitments.
If inflation in the general economy becomes significant, it may affect the
Partnership inasmuch as the residual (resale) values and rates on re-leases of
the Partnership's leased assets may increase as the costs of similar assets
increase. However, the Partnership's revenues from existing leases would not
increase, as such rates are generally fixed for the terms of the leases without
adjustment for inflation.
If interest rates increase significantly, the lease rates that the Partnership
can obtain on future leases will be expected to increase as the cost of capital
is a significant factor in the pricing of lease financing. Leases already in
place, for the most part, would not be affected by changes in interest rates.
<PAGE>
Cash Flows, 1998 vs. 1997:
Six months:
During the first six months of 1998, rents from operating and direct financing
leases were the primary sources of cash flows.
Cash flows from operations increased by $2,489,794 from ($204,631) in 1997 to
$2,285,163 in 1998. The increase is a result of decreased operating lease
revenues offset by decreased balances of receivables (due to sales of certain
assets in 1997).
Sources of cash from investing activities consisted of proceeds from the sales
of lease assets and from direct financing lease rents accounted for as
reductions of the net investment in such leases. Proceeds from sales of assets
decreased from $14,368,852 in 1997 to $496,550 in 1998. A large portion of the
sales proceeds in 1997 was used to pay off non-recourse debt associated with the
assets sold.
In 1998 and 1997, there were no sources of cash from financing activities. Cash
used to pay non-recourse debt decreased significantly. In 1997, certain leases
which were financed primarily with non-recourse debt were sold and upon sale,
the related debt was repaid. In 1997, debt payments were due to scheduled
repayments.
Three months:
The two major sources of cash for the second quarter were operating and direct
financing lease rents.
Operating lease rents have decreased by $613,760 from the prior year due to
asset sales during the preceding twelve months.
In 1997, proceeds from lease assets sales were the most significant source of
cash from investing activities. They decreased from $9,605,818 in 1997 to
$365,874 in 1998 due to decreased amounts of asset sales as noted above for the
six month period.
During the second quarter of 1998 and 1997, there were no financing sources of
cash. Payments of non-recourse debt decreased for the same reasons as noted
above for the six month period.
Results of Operations
Operations in the 1998 resulted in net income of $756,840 for the six month
period and $407,796 for the three month period. In 1997, operations resulted in
net income of $1,069,332 for the six month period and $394,492 for the three
month period.
Revenues decreased from $5,725,297 in 1997 to $2,677,799 in 1998, a decrease of
$3,047,498. Operating lease revenues declined by $2,005,244 due to lease
terminations and sales of the related assets. Gains recognized on sales of
assets also decreased by $1,056,292 compared to 1997. Most of the assets sold
were assets which had come off operating leases. The original cost of operating
lease assets sold increased from $22,978,803 in 1997 to $4,012,672 in 1998.
The Partnership's operating expenses decreased by $2,735,006 compared to 1997.
Combined, depreciation and amortization expenses decreased by $2,057,175. These
decreases resulted from the lease terminations and asset sales noted above.
Interest expense decreased compared to 1997 as a result of the debt repayments
noted above. Management fees (related to lease revenues) decreased from $413,307
in 1997 to $265,280 in 1998.
<PAGE>
Other
Year 2000 Issues
The year 2000 issue is the result of computer programs being written using two
digits rather than four to define the applicable year. Any computer programs
that have time sensitive software may recognize a date using "00" as the year
1900 rather than the year 2000. This could result in a system failure or
miscalculation causing disruptions of operations, including, among other things,
a temporary inability to process transactions or engage in similar normal
business activities.
The Partnership uses primarily third party software and is communicating with
key vendors to ensure that the Partnership's systems are year 2000 compliant.
Based on these discussions, the Partnership does not expect that the costs
related to the year 2000 issue will be significant. Ultimately, the potential
impact of the year 2000 issue will depend on the way in which the year 2000
issue is addressed by businesses and other entities whose financial condition or
operational capability is important to the Partnership.
PART II OTHER INFORMATION
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 SECURITY HOLDERS.
Inapplicable.
Item 5. OTHER INFORMATION.
Inapplicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, June 30, 1998 and December 31, 1997.
Income statements for the six and three month periods
ended June 30, 1998 and 1997.
Statement of changes in partners' equity for the six
months ended June 30, 1998.
Statements of cash flows for the six and three month
periods ended June 30, 1998 and 1997.
Notes to the Financial Statements.
2. Financial Statement Schedules
All other schedules for which provision is made in the
applicable accounting regulations of the Securities and
Exchange Commission are not required under the related
instructions or are inapplicable, and therefore have been
omitted.
(b) Report on Form 8-K
None
<PAGE>
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.
Date:
August 12, 1998
ATEL CASH DISTRIBUTION FUND IV, L.P.
(Registrant)
By: ATEL Financial Corporation
General Partner of Registrant
By: /s/ A. J. BATT
---------------------------------
A. J. Batt
President and Chief Executive Officer
of General Partner
By: /s/ DEAN L. CASH
---------------------------------
Dean L. Cash
Executive Vice President
of General Partner
By: /s/ F. RANDALL BIGONY
------------------------------------------------------
F. Randall Bigony
Principal financial officer of registrant
By: /s/ DONALD E. CARPENTER
------------------------------------------------------
Donald E. Carpenter,
Principal accounting officer of
registrant
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<CASH> 1,674,068
<SECURITIES> 0
<RECEIVABLES> 295,781
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 26,494,341
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 19,597,525
<TOTAL-LIABILITY-AND-EQUITY> 26,494,341
<SALES> 0
<TOTAL-REVENUES> 2,677,799
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,656,074
<LOSS-PROVISION> 13,145
<INTEREST-EXPENSE> 251,740
<INCOME-PRETAX> 756,840
<INCOME-TAX> 0
<INCOME-CONTINUING> 756,840
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 756,840
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
