SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE EXCHANGE ACT.
For the transition period from _____________to _____________
Commission File Number: 0-21242
TRIUMPHE LEASING VIII L.P.
(Exact name of small business issuer
as specified in its charter)
Illinois 36-3799482
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
630 Dundee Road, Suite 345, Northbrook, Illinois 60062
(Address of principal executive offices) (Zip Code)
847-509-1500
(Issuer's telephone number)
_______________________________________________________________
(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer: (1) filed all reports required to
be filed by Sections 13 or 15(d) of the Exchange Act during
the past 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 1 of 11
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING VIII L.P.
BALANCE SHEETS
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 59,845 $ 78,906
Accounts receivable 11,946 44,017
Net investment in direct
financing leases 1,082,248 1,670,064
Prepaid expenses 1,486 -
--------- ---------
TOTAL CURRENT ASSETS 1,155,525 1,792,987
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$2,302,966 and $2,208,951 449,261 543,276
--------- ---------
OTHER ASSETS:
Net investment in direct
financing leases 72,260 95,918
Deferred organization costs,
less accumulated amortization
of $25,000 and $24,270 - 730
--------- ---------
TOTAL OTHER ASSETS 72,260 96,648
--------- ---------
$ 1,677,046 $ 2,432,911
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 11
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING VIII L.P.
BALANCE SHEETS
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 469,983 $ 439,569
Current maturities of
long-term debt 974,173 1,646,827
Other liabilities 29,742 27,150
--------- ---------
TOTAL CURRENT LIABILITIES 1,473,898 2,113,546
--------- ---------
LONG-TERM DEBT,
less current maturities 106,183 138,414
--------- ---------
TOTAL LIABILITIES 1,580,081 2,251,960
--------- ---------
PARTNERS' EQUITY:
General Partners 1,515 2,355
Limited Partners 95,450 178,596
--------- ---------
TOTAL PARTNERS' EQUITY 96,965 180,951
--------- ---------
$ 1,677,046 $ 2,432,911
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 11
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<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 152,788 $ 531,513
Interest Income 45 -
Gain on Sale of Equipment - 24,204
--------- ----------
TOTAL REVENUES 152,833 555,717
--------- ----------
OPERATING EXPENSES:
Interest 28,256 88,633
Depreciation & Amortization 94,746 322,241
Remarketing Commissions Paid
to Outside Lease Brokers 1,160 482
Administrative 48,198 56,386
--------- ----------
TOTAL OPERATING EXPENSES 172,360 467,742
--------- ----------
NET (LOSS) INCOME $ ( 19,527) $ 87,975
========== ==========
NET (LOSS) INCOME ALLOCATED TO:
General Partners $ (195) $ 880
Limited Partners (19,332) 87,095
---------- ----------
$ (19,527) $ 87,975
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.2894 1.2894
Limited Partners 127.6554 127.6554
(LOSS) INCOME PER WEIGHTED AVERAGE UNIT:
General Partners $ (151) $ 682
Limited Partners $ (151) $ 682
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 11
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<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENT OF PARTNERS' EQUITY
Three Months Ended March 31, 1997
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
----- -------- --------
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 180,951 $ 2,355 $ 178,596
DISTRIBUTIONS (64,459) (645) (63,814)
NET LOSS (19,527) (195) (19,332)
--------- ------ --------
PARTNERS' EQUITY
End of period $ 96,965 $ 1,515 $ 95,450
======== ====== ========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 11
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<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) income $ (19,527) $ 87,975
Adjustments to reconcile
net (loss) income to net
cash provided by operating
activities:
Depreciation & amortization 94,746 322,241
(Gain) on sale of equipment
under lease - (24,204)
Amortization of unearned income (32,577) (82,099)
Changes in assets and liabilities:
Decrease in accounts receivable 32,071 -
(Increase) in prepaid expenses (1,486) (2,176)
Increase in accounts payable 30,414 46,491
Increase (Decrease) in other
liabilities 2,592 (37,512)
------- --------
Net cash provided by
operating activities 106,233 310,716
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of computer equipment
on lease - (19,776)
Principal payments received under
direct financing leases 644,050 701,011
Proceeds from sale of equipment
under lease - 129,275
-------- ---------
Net cash provided by
investing activities 644,050 810,510
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (64,459) (128,945)
Proceeds from issuance of
nonrecourse debt - 132,718
Principal payments of
nonrecourse debt (704,885) (1,099,246)
--------- -----------
Net cash used in
financing activities (769,344) (1,095,473)
--------- -----------
NET (DECREASE) INCREASE IN CASH
AND EQUIVALENTS (19,061) 25,753
CASH AND EQUIVALENTS,
at the beginning of the period 78,906 59,415
--------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 59,845 $ 85,168
========= ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 28,256 $ 88,633
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 11
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TRIUMPHE LEASING VIII L.P.
NOTES TO FINANCIAL STATEMENTS
[CAPTION]
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at March 31,
1997 and each of the three months ended March 31, 1997, and March
31, 1996, is unaudited and, in the opinion of the partnership,
reflects all adjustments (which include only normal recurring
adjustments) necessary for the fair presentations of the
financial position as of those dates and the results of operation
for those periods.
The results for interim periods are not necessarily
indicative of trends or of results to be expected for a full
year.
NOTE 2 - ORGANIZATION
The partnership was formed on December 10, 1991, under the
Revised Uniform Limited Partnership Act of the State of Illinois.
The partnership's business is to acquire, own, lease, maintain,
manage and sell equipment. The quarter ended March 31, 1997 was
the twenty-first quarter of operations.
NOTE 3 - DESCRIPTION OF LEASING ARRANGEMENTS
The partnership's leasing operations consist principally of
leased equipment which it has acquired from third-party
independent lease brokers. It is the partnership's intention to
re-lease such equipment to the existing lessee, lease such
equipment to a new lessee, or to sell the equipment at the end of
each lease. The leases expire over the next two years. The cost
of each lease includes an equity investment plus any nonrecourse
loans obtained to finance the purchase.
NOTE 4 - EQUIPMENT
Equipment is recorded at cost. Depreciation is computed
using the double declining balance method over the estimated
useful lives of the assets (five years).
Page 7 of 11
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TRIUMPHE LEASING VIII L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - NET INVESTMENT IN LEASES
The following lists the components of the net
investment in leases as of March 31, 1997:
Total minimum lease payments to be received $ 996,025
Estimated residual values of leased property 202,972
Less: Unearned income (44,489)
-----------
Net investment in leases $ 1,154,508
===========
At March 31, 1997, minimum lease payments for direct
financing and operating leases for each of the three succeeding
calendar years are expected to be received as follows:
YEAR AMOUNT
1997 1,699,480
1998 130,584
1999 14,452
Page 8 of 11
<PAGE>
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
The partnership commenced the offering of units and began
operations on March 27, 1992, and commenced the acquisition of
equipment in June of 1992. As of December 31, 1993 the
partnership ceased the sale of Investor Limited Partner Units. A
total of $2,514,768 in units had been sold through December 31,
1993. At March 31, 1997 the partnership had acquired $19,119,937
of leased equipment with an equity investment of $2,157,130 and
nonrecourse bank borrowing of $16,962,807.
OPERATIONS
Total revenues decreased to $152,833 for the first quarter of the
fiscal year ending December 31, 1997 ("fiscal 1997") from
$555,717 for the first quarter of the fiscal year ended
December 31, 1996 ("fiscal 1996"). Total revenues consist of
lease rental income, interest earned on short-term money market
investments, and the gain on sale of equipment. The decrease in
total revenues from the first quarter of fiscal 1996 to the first
quarter of fiscal 1997 was due primarily to the loss of rental
income attributable to the expiration of leases.
Operating expenses decreased to $172,360 for the first quarter of
fiscal 1997 from $467,742 for the first quarter of fiscal 1996.
Operating expenses consist of interest on nonrecourse financing
of equipment purchased, depreciation of equipment, amortization
of organization expenses, and administrative expenses. The
decrease in operating expenses from the first quarter of fiscal
1996 to the first quarter of fiscal 1997 resulted primarily from
the reduction of equipment on lease.
The partnership does not plan to invest in additional equipment.
Future results depend on the collection of rents on existing and
extended leases, disposition of equipment from expired leases,
and interest earned on short-term money market investments.
LIQUIDITY AND CAPITAL RESOURCES
Liquid assets of the partnership increase principally from cash
flows from operations. Cash and cash equivalents of the
partnership at March 31, 1997 include undistributed cash
available from operations during the period March 27, 1992 to
March 31, 1997.
The partnership has a program which provides for the temporary
investment of cash in various short-term money market instruments
pending disbursements for operations or distributions to
partners.
The partnership generally financed the purchase of equipment by
the use of loans in an amount in excess of 50% of the purchase
price thereof. All of the loans incurred were nonrecourse to the
partnership and were or will be fully amortized by the monthly
rental payments due to the partnership under related leases.
The partnership maintains, to the extent practicable, a working
capital and contingency reserve in an amount not to exceed 1% of
the gross proceeds from the offering of units, subject to
business and distribution requirements. Such amount, together
with any amount reserved from operations, will be available to
meet working capital requirements and to provide for
contingencies.
Page 9 of 11
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TRIUMPHE LEASING VIII L.P.
PART II - OTHER INFORMATION
NONE
Page 10 of 11
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant has caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
TRIUMPHE LEASING VIII L.P.
By: TL GENERAL VIII CORP.,
Its: General Partner
Date May 1, 1997 By: /s/ Gerald A. Horwitz
-------------------- -------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date May 1, 1997 By: /s/ Jerry L. Schwartz
-------------------- --------------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer
of the Corporate General Partner
(Principal Financial and
Accounting Officer)
Date May 1, 1997 By: /s/ Gerald A. Horwitz
-------------------- --------------------------------
Gerald A. Horwitz
Its: General Partner
Page 11 of 11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Mar-31-1997
<CASH> 59,845
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,155,525
<PP&E> 4,961,178
<DEPRECIATION> 4,511,917
<TOTAL-ASSETS> 1,677,046
<CURRENT-LIABILITIES> 1,473,898
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,677,046
<SALES> 0
<TOTAL-REVENUES> 182,833
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28,256
<INCOME-PRETAX> (19,527)
<INCOME-TAX> 0
<INCOME-CONTINUING> (19,527)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
