UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the period ended March 31, 1997
-----------------------------------------------------------
[ ] 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 33-44413
---------------------------------------------------------
ICON Cash Flow Partners, L.P., Series E
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3635208
- --------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
600 Mamaroneck Avenue, Harrison, New York 10528-1632
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(914) 698-0600
- --------------------------------------------------------------------------------
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
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
[ x] Yes [ ] No
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Consolidated Balance Sheets
(unaudited)
<TABLE>
March 31, December 31,
1997 1996
Assets
<S> <C> <C>
Cash $ 5,551,401 $ 1,203,626
-------------- --------------
Investment in finance leases
Minimum rents receivable 29,022,104 31,294,210
Estimated unguaranteed residual values 11,088,145 11,769,952
Initial direct costs 416,090 498,927
Unearned income (4,180,536) (4,515,040)
Allowance for doubtful accounts (852,072) (844,709)
-------------- --------------
35,493,731 38,203,340
Investment in operating leases
Equipment at cost 20,771,628 20,771,628
Accumulated depreciation (2,654,278) (2,388,850)
Initial direct costs - 81,600
-------------- --------------
18,117,350 18,464,378
Investment in financings
Receivables due in installments 12,983,488 23,057,131
Initial direct costs 47,426 136,330
Unearned income (1,959,038) (3,699,855)
Allowance for doubtful accounts (266,279) (263,231)
-------------- --------------
10,805,597 19,230,375
Note receivable - affiliate 6,780,328 -
-------------- -----------
Other assets 751,270 775,161
-------------- --------------
Equity investment in joint ventures 61,385 57,290
-------------- --------------
Total assets $ 77,561,062 $ 77,934,170
============== ==============
Liabilities and Partners' Equity
Notes payable - non-recourse $ 31,533,224 $ 34,168,921
Note payable - revolving credit facility 17,124,757 13,000,000
Security deposits and deferred credits 629,509 887,257
Accounts payable - other 355,547 461,109
Accounts payable - equipment 1,480 71,553
Minority interest in joint venture 49,202 45,724
Accounts payable to General Partner
and affiliates, net - 106,642
-------------- --------------
49,693,719 48,741,206
</TABLE>
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Consolidated Balance Sheets (continued)
(unaudited)
<TABLE>
March 31, December 31,
1997 1996
Commitments and Contingencies
Partners' equity (deficiency)
<S> <C> <C>
General Partner (241,646) (228,462)
Limited partners (609,246 and 609,446 units
outstanding, $100 per unit original
issue price in 1997 and 1996, respectively) 28,108,989 29,421,426
-------------- --------------
Total partners' equity 27,867,343 29,192,964
-------------- --------------
Total liabilities and partners' equity $ 77,561,062 $ 77,934,170
============== ==============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Consolidated Statements of Operations
For the Three Months Ended March 31,
(unaudited)
1997 1996
---- ----
Revenues
Finance income $ 1,114,831 $ 1,150,111
Rental income 677,193 677,193
Net gain on sales or remarketing
of equipment 214,999 238,199
Interest income and other 203,882 108,887
Income from equity investment
in joint venture 4,095 1,380
Income from leveraged leases, net - 200,517
--------------- --------------
Total revenues 2,215,000 2,376,287
--------------- --------------
Expenses
Interest 529,838 829,234
Management fees - General Partner 268,478 331,845
Depreciation 265,428 265,428
Amortization of initial direct costs 253,389 250,593
Administrative expense reimbursements
- General Partner 137,832 159,116
General and administrative 112,324 87,608
Minority interest in joint venture 4,076 1,506
--------------- --------------
Total expenses 1,571,365 1,925,330
--------------- --------------
Net income $ 643,635 $ 450,957
=============== ==============
Net income allocable to:
Limited partners $ 637,199 $ 446,447
General Partner 6,436 4,510
--------------- --------------
$ 643,635 $ 450,957
=============== ==============
Weighted average number of limited
partnership units outstanding 609,380 609,576
=============== ==============
Net income per weighted average
limited partnership unit $ 1.05 $ .73
=============== ==============
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Consolidated Statements of Changes in Partners' Equity
For the Three Months Ended March 31, 1997 and the
Years Ended December 31, 1996, 1995 and 1994
<TABLE>
Limited Partner Distributions
Return of Investment Limited General
Capital Income Partners Partner Total
(Per weighted average unit)
Balance at
<S> <C> <C> <C> <C> <C>
December 31, 1993 $ 48,112,323 $ (46,440) $ 48,065,883
Cash distributions
to partners $ 11.27 $ 2.48 (8,390,043) (78,582) (8,468,625)
Limited partnership
units redeemed
(728 units) (48,490) - (48,490)
Net income 1,511,824 15,271 1,527,095
--------------- ------------- ---------------
Balance at
December 31, 1994 41,185,614 (109,751) 41,075,863
Cash distributions
to partners $ 10.17 $ 2.58 (7,773,082) (78,512) (7,851,594)
Limited partnership
units redeemed
(45 units) (2,370) - (2,370)
Net income 1,569,944 15,858 1,585,802
--------------- ------------- ---------------
Balance at
December 31, 1995 34,980,106 (172,405) 34,807,701
Cash distribution
to partners $ 9.11 $ 3.64 (7,771,164) (78,496) (7,849,660)
Limited partnership
units redeemed
(193 units) (8,960) - (8,960)
Net income 2,221,444 22,439 2,243,883
--------------- ------------- ---------------
Balance at
December 31, 1996 29,421,426 (228,462) 29,192,964
Cash distribution
to partners $ 8.57 $ 4.18 (1,942,398) (19,620) (1,962,018)
Limited partnership
units redeemed
(200 units) (7,238) - (7,238)
Net income 637,199 6,436 643,635
--------------- ------------- ---------------
Balance at
March 31, 1997 $ 28,108,989 $ (241,646) $ 27,867,343
=============== ============= ===============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows
For the Three Months Ended March 31,
(unaudited)
<TABLE>
1997 1996
---- ----
Cash flows from operating activities:
<S> <C> <C>
Net income $ 643,635 $ 450,957
------------- -------------
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 265,428 265,428
Allowance for doubtful accounts 50,966 (56,674)
Rental income-assigned operating lease receivables (677,193) (677,193)
Finance income portion of receivables
paid directly to lenders by lessees (359,116) (536,211)
Amortization of initial direct costs 253,389 250,593
Net gain on sales or remarketing of equipment (214,999) (238,199)
Interest expense on non-recourse financing paid
directly by lessees 178,390 420,457
Interest expense accrued on debt 69,011 369,823
Collection of principal - non-financed receivables 2,848,199 2,372,088
Income from leveraged lease, net - (200,517)
Income from equity investment in joint venture (4,095) (1,380)
Change in operating assets and liabilities:
Accounts payable to General Partner and affiliates, net (106,642) 258,993
Accounts payable - other (105,562) (996,571)
Security deposits and deferred credits (257,748) (115,844)
Minority interest in joint venture 3,478 909
Other assets 10,826 4,477,625
Other, net 396,983 287,899
------------- -------------
Total adjustments 2,351,315 5,881,226
------------- -------------
Net cash provided by operating activities 2,994,950 6,332,183
------------- -------------
Cash flows from investing activities:
Equipment and receivables purchased (3,278,980) (899,481)
Proceeds from sales of equipment 9,256,632 1,190,114
Initial direct costs - (73,796)
------------- -------------
Net cash provided by investing activities 5,977,652 216,837
------------- -------------
</TABLE>
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows (continued)
For the Three Months Ended March 31,
(unaudited)
<TABLE>
1997 1996
---- ----
Cash flows from financing activities:
<S> <C>
Loan to an affiliate (7,780,328) -
Principal payments received on affiliate note 1,000,000 -
Proceeds from revolving credit facility 4,400,000 780,000
Principal payments on revolving credit facility (275,243) (5,286,569)
Redemption of limited partnership units (7,238) (5,283)
Cash distributions to partners (1,962,018) (1,962,680)
------------- -------------
Net cash used in financing activities (4,624,827) (6,474,532)
------------- -------------
Net increase in cash 4,347,775 74,488
Cash at beginning of period 1,203,626 5,826,646
------------- -------------
Cash at end of period $ 5,551,401 $ 5,901.134
============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Statement of Cash Flows (continued)
Supplemental Disclosures of Cash Flow Information
During the three months ended March 31, 1997 and 1996, non-cash activities
included the following:
<TABLE>
1997 1996
---- ----
Principal and interest on direct finance receivables
<S> <C> <C>
paid directly to lenders by lessees $ 2,183,214 $ 3,303,659
Rental income assigned operating lease receivable 677,193 677,193
Principal and interest on non-recourse financing
paid directly by lessees (2,860,407) (3,980,852)
Accounts payable - equipment - 2,328,000
Fair value of equipment and receivables purchased
for debt and payables - (2,328,000)
-------------- --------------
$ - $ -
============== ==============
</TABLE>
Interest expense of $529,838 and $829,234 for the three months ended March
31, 1997 and 1996 consisted of: interest expense on non-recourse financing
accrued or paid directly to lenders by lessees of $225,710 and $790,280,
respectively, and other interest of $304,128 and $38,954, respectively.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
September 30, 1996
(unaudited)
1. Basis of Presentation
The consolidated financial statements of ICON Cash Flow Partners, L.P.,
Series E (the "Partnership") have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC") and, in the
opinion of management, include all adjustments (consisting only of normal
recurring accruals) necessary for a fair statement of income for each period
shown. Certain information and footnote disclosures normally included in
consolidated financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such SEC rules
and regulations. Management believes that the disclosures made are adequate to
make the information represented not misleading. The results for the interim
period are not necessarily indicative of the results for the full year. These
consolidated financial statements should be read in conjunction with the
consolidated financial statements and notes included in the Partnership's 1995
Annual Report on Form 10-K.
2. Redemption of Limited Partnership Units
The General Partner consented to the Partnership redeeming 200 limited
partnership units during the three months ended March 31, 1997. The redemption
amount was calculated following the specified redemption formula as per the
Partnership agreement. Redeemed units have no voting rights and do not share in
distributions. The Partnership agreement limits the number of units which can be
redeemed in any one year and redeemed units may not be reissued. Redeemed
limited partnership units are accounted for as a reduction from partners equity.
3. Investment in Joint Ventures
The Partnership Agreement allows the Partnership to invest in joint
ventures with other limited partnerships sponsored by the General Partner
provided that the investment objectives of the joint ventures are consistent
with that of the Partnership.
ICON Cash Flow LLC I
In September 1994 the Partnership and an affiliate, ICON Cash Flow
Partners L.P. Six ("L.P. Six"), formed a joint venture, ICON Cash Flow Partners,
L.L.C. I ("ICON Cash Flow LLC I"), for the purpose of acquiring and managing an
aircraft currently on lease to Alaska Airlines, Inc. The Partnership and L.P.
Six contributed 99% and 1% of the cash required for such acquisition,
respectively, to ICON Cash Flow LLC I. ICON Cash Flow LLC I acquired the
aircraft, assuming non-recourse debt and utilizing contributions received from
the Partnership and L.P. Six. The lease is an operating lease. Profits, losses,
excess cash and disposition proceeds are allocated 99% to the Partnership and 1%
to L.P. Six. The Partnership's consolidated financial statements include 100% of
the assets and liabilities of ICON Cash Flow LLC I. L.P. Six's investment in
ICON Cash Flow LLC I has been reflected as "Minority interest in joint venture."
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
ICON Cash Flow LLC II
In March 1995 the Partnership and an affiliate, L.P. Six, formed ICON
Cash Flow Partners L.L.C. II, ("ICON Cash Flow LLC II"), for the purpose of
acquiring and managing an aircraft currently on lease to Alaska Airlines, Inc.
The Partnership and L.P. Six contributed 1% and 99% of the cash required for
such acquisition, respectively, to ICON Cash Flow LLC II. ICON Cash Flow LLC II
acquired the aircraft, assuming non-recourse debt and utilizing contributions
received from the Partnership and L.P. Six. The lease is an operating lease.
Profits, losses, excess cash and disposition proceeds will be allocated 1% to
the Partnership and 99% to L.P. Six. The General Partner manages and controls
the business affairs of both the Partnership and L.P. Six. As a result of this
common control and the Partnership's ability to influence the activities of the
joint venture, the Partnership's investment in the joint venture is accounted
for under the equity method. Information as to the financial position and
results of operations of ICON Cash Flow LLC II at March 31, 1997 is summarized
below:
March 31, 1997
Assets $ 17,674,305
==============
Liabilities $ 13,240,664
==============
Equity $ 4,433,641
==============
Three Months Ended
March 31, 1997
Net income $ 300,123
==============
ICON Cash Flow LLC III
On December 31, 1996, the Partnership and an affiliate, ICON Cash Flow
Partners, L.P. Seven ("L.P. Seven"), formed ICON Cash Flow Partners L.L.C. III
("ICON Cash Flow LLC III"), for the purpose of acquiring and managing an
aircraft currently on lease to Continental Airlines, Inc. The Partnership and
L.P. Seven contributed 1% and 99% of the cash required for such acquisition,
respectively, to ICON Cash Flow LLC III. ICON Cash Flow LLC III acquired the
aircraft, assuming non-recourse debt and utilizing contributions received from
the Partnership and L.P. Seven. The lease is a leveraged lease. Profits, losses,
excess cash and disposition proceeds are allocated 1% to the Partnership and 99%
to L.P. Seven. The General Partner manages and controls the business affairs of
both the Partnership and L.P. Seven. As a result of this common control and the
Partnership's ability to influence the activities of the joint venture, the
Partnership's investment in the
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
joint venture is accounted for under the equity method. Information as to the
financial position and results of operations of ICON Cash Flow LLC III at March
31, 1997 is summarized below:
March 31, 1997
Assets $ 16,051,998
==============
Liabilities $ 14,347,175
==============
Equity $ 1,704,823
==============
Period Ended
March 31, 1997
Net income $ 109,354
==============
4. Related Party Transactions
During the three months ended March 31, 1997 and 1996, the Partnership
paid or accrued to the General Partner management fees of $268,478 and $331,845,
respectively, and administrative expense reimbursements of $137,832 and
$159,116, respectively, which were charged to operations.
During the three months ended March 31, 1997 and 1996, the Partnership
paid or accrued to the General Partner acquisition fees of $0 and $73,796,
respectively.
Included in the Partnership's acquisitions for the year ended December 31,
1996 is a financing transaction in the amount of $5,690,161. This represents the
financings of free cash which results from lease rental payments being greater
than debt payments on a leveraged lease. The financing is secured by the
underlying equipment, a 1983 Airbus A300B4-203 aircraft currently on lease to
A.I. Leasing II, Inc. Subsequent to this financing ICON Cash Flow Partners L.P.
Six ("L.P. Six"), an affiliate of the Partnership, acquired the residual
interest in the leveraged lease and assumed the related outstanding non-recourse
debt. In January 1997 L.P. Six re-financed the free cash portion of the
leveraged lease with a third party. As a result of this re-financing, the
Partnership received proceeds of $5,792,043 and terminated its interest in the
leveraged lease.
On January 28, 1997, the Partnership lent $7,780,328 to ICON Asset
Acquisition, a joint venture limited liability corporation formed by ICON Cash
Flow Partners L.P., Series B (8.93% interest), ICON Cash Flow Partners L.P.,
Series C (13.39% interest) and ICON Cash Flow Partners L.P. Six (77.68%
interest), all affiliates of the Partnership. This short term note bears
interest at the rate of 8% and is expected to be paid in full by June 30, 1997.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The Partnership's portfolio consisted of a net investment in finance
leases, operating leases, financings, leveraged leases and an equity investment
in joint venture of 55%, 28%, 17%, 0% and less than 1% of total investments at
March 31, 1997, respectively, and 59%, 24%, 10%, 7% and less than 1% of total
investments at March 31, 1996, respectively.
For the three months ended March 31, 1997 and 1996, the Partnership leased
or financed equipment with initial costs of $3,522,046 and $3,227,482,
respectively, to 59 and 25 lessees or equipment users, respectively. The
weighted average initial transaction term for each year was 43 and 49 months,
respectively.
Results of Operations for the Three Months Ended March 31, 1997 and 1996
Revenues for the three months ended March 31, 1997 were $2,215,000,
representing a decrease of $161,287 or 7% from 1996. The decrease in revenues
resulted primarily from a decrease in income from leverage leases of $200,517, a
decrease in finance income of $35,280 or 31% and a decrease in net gain on sales
or remarketing of equipment of $23,200 or 10% from 1996. These decreases were
partially offset by an increase in interest income and other of $94,995 or 87%
and income from equity investment in joint venture of $2,715. Finance income and
income from leveraged leases decreased due to a decrease in the average size of
the finance and leveraged lease portfolios from 1996 to 1997. The decrease in
net gain on sales or remarketing of equipment was due to a decrease in the
number of leases maturing and the underlying equipment being sold or remarketed,
for which the proceeds received were in excess of the remaining carrying value
of the equipment. Interest income and other increased due to an increase in the
average cash balance from 1997 to 1996.
Expenses for the three months ended March 31, 1997 were $1,571,365,
representing a decrease of $353,965 or 18% from 1996. The decrease in expenses
resulted primarily from a decrease in interest expense of $299,396 or 36%, a
decrease in management fees of $63,367 or 19% and a decrease in administrative
expense reimbursements of $21,284 or 13% from 1996. These decreases were
partially offset by an increase in general and administrative expense of $5,242
or 6%, an increase in amortization of initial direct cost of $2,796 or 1% and an
increase in minority interest in joint venture of $2,570 or 2%. Interest expense
decreased due to a decrease in the average debt outstanding from 1996 to 1997.
Management fees and administrative expense reimbursements decreased due to a
decrease in the average size of the portfolio from 1996 to 1997.
Net income for the three months ended March 31, 1997 and 1996 was $643,635
and $450,957, respectively. The net income per weighted average limited
partnership unit was $1.05 and $.73 for 1997 and 1996, respectively.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
March 31, 1997
Liquidity and Capital Resources
The Partnership's primary sources of funds for the three months ended
March 31, 1997 and 1996 were net cash provided by operations of $2,994,950 and
$6,332,183, respectively, proceeds from sales of equipment of $9,256,632 and
$1,190,114, respectively, and proceeds from the revolving credit facility of
$4,400,000 and $780,000, respectively. These funds were used to purchase
equipment, to fund cash distributions and to make payments on borrowings. The
Partnership intends to continue to purchase additional equipment and to fund
cash distributions utilizing cash provided by operations and proceeds from sales
of equipment.
Cash distributions to the limited partners for the three months ended
March 31, 1997 and 1996, which were paid monthly, totaled $1,942,398 and
$1,943,053, respectively, of which $637,199 and $446,447 was investment income
and $1,305,199 and $1,496,606 was a return of capital, respectively. The monthly
annualized cash distribution rate to limited partners for the three months ended
March 31, 1997 and 1996 was 12.75%, of which 4.18% and 2.93% was investment
income and 8.57% and 9.82% was a return of capital, respectively, calculated as
a percentage of each partners' initial capital contribution. The limited partner
distribution per weighted average unit outstanding for the three months ended
March 31, 1997 and 1996 was $3.19, of which $1.05 and $.73 was investment income
and $2.14 and $2.46 was a return of capital, respectively.
The Partnership entered into a three year revolving credit agreement (the
"Facility") in January 1995. The maximum amount available under the Facility is
$25,000,000 and at March 31, 1997 the Partnership had $17,124,757 available for
borrowing under the facility, of which $17,124,757 was outstanding.
Included in the Partnership's acquisitions for the year ended December 31,
1996 is a financing transaction in the amount of $5,690,161. This represents the
financings of free cash, which results from lease rental payments being greater
than debt payments on a leveraged lease. The financing is secured by the
underlying equipment, a 1983 Airbus A300B4-203 aircraft currently on lease to
A.I. Leasing II, Inc. Subsequent to this financing ICON Cash Flow Partners L.P.
Six ("L.P. Six"), an affiliate of the Partnership, acquired the residual
interest in the leveraged lease and assumed the related outstanding non-recourse
debt. In January 1997 L.P. Six re-financed the free cash portion of the
leveraged lease with a third party. As a result of this re-financing, the
Partnership received proceeds of $5,792,043 and terminated its interest in the
leveraged lease.
On January 28, 1997, the Partnership lent $7,780,328 to ICON Asset
Acquisition, a joint venture limited liability corporation formed by ICON Cash
Flow Partners L.P., Series B (8.93% interest), ICON Cash Flow Partners L.P.,
Series C (13.39% interest) and ICON Cash Flow Partners L.P. Six (77.68%
interest), all affiliates of the Partnership. This is a short term note, which
bears interest at the rate of 8%, which is the Partnership's approximate cost of
funds, and is expected to be paid in full by June 30, 1997.
As of March 31, 1997, except as noted above, there were no known trends or
demands, commitments, events or uncertainties which are likely to have any
material effect on liquidity. As cash is realized from operations, sales of
equipment and borrowings, the Partnership will invest in equipment leases and
financings where it deems it to be prudent while retaining sufficient cash to
meet its reserve requirements and recurring obligations as they become due.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No reports or Form 8-K were filed by the Partnership during the quarter ended
March 31, 1997.
<PAGE>
ICON Cash Flow Partners, L.P., Series E
(A Delaware Limited Partnership)
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.
ICON Cash Flow Partners, L.P., Series E
File No. 33-44413 (Registrant)
By its General Partner,
ICON Capital Corp.
May 15, 1997 Gary N. Silverhardt
Date Gary N. Silverhardt
Chief Financial Officer
(Principal financial and account officer of
the General Partner of the Registrant)
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000881788
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 5,551,401
<SECURITIES> 0
<RECEIVABLES> 47,417,679
<ALLOWANCES> 1,118,351
<INVENTORY> 2,711,375
<CURRENT-ASSETS> * 0
<PP&E> 20,771,628
<DEPRECIATION> 2,654,278
<TOTAL-ASSETS> 77,561,062
<CURRENT-LIABILITIES> ** 0
<BONDS> 48,657,981
0
0
<COMMON> 0
<OTHER-SE> 27,867,343
<TOTAL-LIABILITY-AND-EQUITY> 77,561,062
<SALES> 2,215,000
<TOTAL-REVENUES> 2,215,000
<CGS> 522,893
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 518,634
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 529,838
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 643,635
<EPS-PRIMARY> 1.05
<EPS-DILUTED> 1.05
<FN>
* The Partnership has an unclassified balance sheet in its financial
statements due to the nature of its industry. A value of "0" was used for
current assets and liabilities.
** The Partnership has an unclassified balance sheet in its financial
statements due to the nature of its industry. A value of "0" was used for
current assets and liabilities.
</FN>
</TABLE>
