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 September 30, 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 13
<PAGE>
<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING VIII L.P.
BALANCE SHEETS
<CAPTION>
September 30, 1997 December 31, 1996
------------------ -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 135,399 $ 78,906
Net investment in direct
financing leases 273,264 1,670,064
Accounts receivable 5,193 44,017
Prepaid expenses 496 -
---------- ----------
TOTAL CURRENT ASSETS 414,352 1,792,987
---------- ----------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$973,747 and $2,208,951 204,690 543,276
---------- ----------
OTHER ASSETS:
Net investment in direct
financing leases 34,932 95,918
Deferred organization costs,
less accumulated amortization
of $25,000 and $24,270 - 730
---------- ----------
TOTAL OTHER ASSETS 34,932 96,648
---------- ----------
$ 653,974 $ 2,432,911
========== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 13
<PAGE>
<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING VIII L.P.
BALANCE SHEETS
<CAPTION>
September 30, 1997 December 31, 1996
------------------ -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 442,366 $ 439,569
Current maturities of
long-term debt 231,346 1,646,827
Other liabilities 4,808 27,150
----------- -----------
TOTAL CURRENT LIABILITIES 678,520 2,113,546
=========== ===========
LONG-TERM DEBT,
less current maturities 235,295 138,414
----------- -----------
TOTAL LIABILITIES 913,815 2,251,960
----------- -----------
PARTNERS' (DEFICIT) EQUITY:
General Partners (2,052) 2,355
Limited Partners (257,789) 178,596
----------- -----------
TOTAL PARTNERS' (DEFICIT)
EQUITY (259,841) 180,951
----------- -----------
$ 653,974 $ 2,432,911
=========== ===========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 324,022 $ 1,396,198
Interest Income 45 1,265
Loss on Sale of Equipment (152,925) (345,872)
----------- -----------
TOTAL REVENUES 171,142 1,051,591
----------- -----------
OPERATING EXPENSES:
Interest 52,257 212,255
Depreciation & Amortization 171,565 812,199
Remarketing Commissions Paid
to Outside Lease Brokers 105,445 6,263
Administrative 50,624 136,914
----------- -----------
TOTAL OPERATING EXPENSES 379,891 1,167,631
----------- -----------
NET LOSS $ (208,749) $ (116,040)
=========== ===========
NET INCOME LOSS ALLOCATED TO:
General Partners $ (2,087) $ (1,160)
Limited Partners (206,662) (114,880)
----------- -----------
$ (208,749) $ (116,040)
=========== ===========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.2894 1.2894
Limited Partners 127.6554 127.6554
INCOME LOSS PER WEIGHTED AVERAGE UNIT:
General Partners $ (1,619) $ (900)
Limited Partners $ (1,619) $ (900)
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 72,592 $ 234,086
Gain (Loss) on Sale
of Equipment 8,775 (301,496)
----------- -----------
TOTAL REVENUES 81,367 (67,410)
----------- -----------
OPERATING EXPENSES:
Interest 8,036 56,086
Depreciation & Amortization 37,268 182,252
Remarketing Commissions Paid
to Outside Lease Brokers 59,848 880
Administrative (25,093) 34,001
----------- -----------
TOTAL OPERATING EXPENSES 80,059 273,219
----------- -----------
NET INCOME (LOSS) $ 1,308 $ (340,629)
=========== ===========
NET INCOME (LOSS) ALLOCATED TO:
General Partners $ 13 $ (3,406)
Limited Partners 1,295 (337,223)
----------- -----------
$ 1,308 $ (340,629)
=========== ===========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.2894 1.2894
Limited Partners 127.6554 127.6554
INCOME (LOSS) PER WEIGHTED AVERAGE UNIT:
General Partners $ 10 $ (2,642)
Limited Partners $ 10 $ (2,642)
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENT OF PARTNERS' EQUITY
Nine Months Ended September 30, 1997
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
----- -------- --------
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 180,951 $ 2,355 $ 178,596
DISTRIBUTIONS (232,043) (2,320) (229,723)
NET LOSS (208,749) (2,087) (206,662)
---------- --------- ----------
PARTNERS' DEFICIT EQUITY
End of period $(259,841) $ (2,052) $(257,789)
========== ========= ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income loss $ (208,749) $ (116,040)
Adjustments to reconcile
net loss income to net
cash provided by operating
activities:
Depreciation & amortization 171,565 812,199
Loss on sale of equipment
under lease 152,925 345,872
Amortization of unearned
income (59,452) (213,338)
Changes in assets and liabilities:
Decrease in accounts receivable 38,824 -
(Increase) in prepaid expenses (496) (725)
Increase in accounts payable 2,797 71,113
Decrease in other liabilities (22,342) (34,952)
---------- ----------
Net cash provided by
operating activities 75,072 864,129
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of computer equipment
on lease - (108,393)
Principal payments received under
direct financing leases 1,517,238 2,046,480
Proceeds from sale of
equipment under lease 14,826 735,193
---------- ----------
Net cash provided by
investing activities 1,532,064 2,673,280
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (232,043) (773,243)
Proceeds from issuance of
nonrecourse debt 161,524 221,312
Principal payments of
nonrecourse debt (1,480,124) (2,953,524)
----------- -----------
Net cash used in
financing activities (1,550,643) (3,505,455)
----------- -----------
NET INCREASE IN CASH
AND EQUIVALENTS 56,493 31,954
CASH AND EQUIVALENTS,
at the beginning of the period 78,906 59,415
CASH AND EQUIVALENTS,
at the end of the period $ 135,399 $ 91,369
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 52,257 $ 212,255
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 1,308 $ (340,629)
Adjustments to reconcile
net (loss) income to net
cash provided by operating
activities:
Depreciation & amortization 37,268 182,252
(Gain) Loss on sale of
equipment under lease 8,775 301,496
Amortization of unearned income (7,528) (60,122)
Changes in assets and liabilities:
Decrease in accounts receivable 19,026 -
Decrease in prepaid expenses 495 725
(Decrease) Increase in
accounts payable (37,010) 42,311
(Decrease) Increase in
other liabilities (19,305) 4,333
---------- ----------
Net cash (used in) provided
by operating activities (14,521) 130,366
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 229,136 678,691
Proceeds from sale of
equipment under lease 4,185 31,386
---------- ----------
Net cash provided by
investing activities 233,321 710,077
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (64,459) (64,459)
Principal payments of
nonrecourse debt (110,000) (777,069)
---------- ----------
Net cash used in
financing activities (174,459) (841,528)
---------- ----------
NET INCREASE (DECREASE) IN
CASH AND EQUIVALENTS 44,341 (1,085)
CASH AND EQUIVALENTS,
at the beginning of the period 91,058 92,454
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 135,399 $ 91,369
========== ==========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 8,036 $ 56,086
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 8 of 13
<PAGE>
TRIUMPHE LEASING VIII L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at September 30,
1997 and each of the nine months and three months ended September
30, 1997, and September 30, 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 September 30, 1997
was the twenty-third 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 three years. The
cost of each lease includes an equity investment plus any non-
recourse 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 9 of 13
<PAGE>
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 September 30, 1997:
Total minimum lease payments to be received $ 122,838
Estimated residual values of leased property 202,972
Less: Unearned income (17,614)
----------
Net investment in leases $ 308,196
==========
At September 30, 1997, minimum lease payments for direct
financing and operating leases for each of the four succeeding
calendar years are expected to be received as follows:
YEAR AMOUNT
1997 $ 1,744,255
1998 190,284
1999 74,152
2000 14,925
Page 10 of 13
<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 September 30, 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 $171,142 for the first three quarters
of the fiscal year ending December 31, 1997 ("fiscal 1997") from
$1,051,591 for the first three quarters 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 loss on sale of equipment. The decrease in
total revenues from the first three quarters of fiscal 1996 to
the first three quarters of fiscal 1997, was due primarily to the
loss of rental income attributable to the expiration of leases.
Operating expenses decreased to $379,891 for the first three
quarters of fiscal 1997 from $1,167,631 for the first three
quarters 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 three quarters of fiscal 1996 to the first three
quarters 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 September 30, 1997 include undistributed cash
available from operations during the period March 27, 1992 to
September 30, 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 11 of 13
<PAGE>
TRIUMPHE LEASING VIII L.P.
PART II - OTHER INFORMATION
NONE
Page 12 of 13
<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 October 31, 1997 By: /s/ Gerald A. Horwitz
-------------------- -------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date October 31, 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 October 31, 1997 By: /s/ Gerald A. Horwitz
------------------- --------------------------------
Gerald A. Horwitz
Its: General Partner
Page 13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Sep-30-1997
<CASH> 135,399
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 414,352
<PP&E> 1,178,437
<DEPRECIATION> 973,747
<TOTAL-ASSETS> 653,974
<CURRENT-LIABILITIES> 678,520
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 653,974
<SALES> 0
<TOTAL-REVENUES> 171,142
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 52,257
<INCOME-PRETAX> (208,749)
<INCOME-TAX> 0
<INCOME-CONTINUING> (208,749)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
