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 June 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>
June 30, 1997 December 31, 1996
------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 91,058 $ 78,906
Accounts Receivable 24,219 44,017
Net investment in direct
financing leases 475,694 1,670,064
Prepaid expenses 991 -
--------- ---------
TOTAL CURRENT ASSETS 591,962 1,792,987
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$956,886 and $2,208,951 237,368 543,276
--------- ---------
OTHER ASSETS:
Net investment in direct
financing leases 54,110 95,918
Deferred organization costs,
less accumulated amortization
of $25,000 and $24,270 - 730
--------- ---------
TOTAL OTHER ASSETS 54,110 96,648
--------- ---------
$ 883,440 $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>
June 30, 1997 December 31, 1996
------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 479,376 $ 439,569
Current maturities of
long-term debt 405,987 1,646,827
Other liabilities 24,113 27,150
----------- -----------
TOTAL CURRENT LIABILITIES 909,476 2,113,546
----------- -----------
LONG-TERM DEBT,
less current maturities 170,654 138,414
----------- -----------
TOTAL LIABILITIES 1,080,130 2,251,960
----------- -----------
PARTNERS' EQUITY (DEFICIT):
General Partners (1,422) 2,355
Limited Partners (195,268) 178,596
----------- -----------
TOTAL PARTNERS' EQUITY
(DEFICIT) (196,690) 180,951
----------- -----------
$ 883,440 $ 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>
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 251,430 $ 1,162,112
Interest Income 45 1,265
Loss on Sale of Equipment (161,700) (44,376)
----------- -----------
TOTAL REVENUES 89,775 1,119,001
----------- -----------
OPERATING EXPENSES:
Interest 44,221 156,169
Depreciation & Amortization 134,297 624,592
Remarketing Commissions Paid
to Outside Lease Brokers 45,598 5,384
Administrative 75,716 102,912
----------- -----------
TOTAL OPERATING EXPENSES 299,832 889,057
----------- -----------
NET INCOME (LOSS) $ (210,057) $ 229,944
=========== ===========
NET INCOME (LOSS) ALLOCATED TO:
General Partners $ (2,101) $ 2,299
Limited Partners (207,956) 227,645
------------ -----------
$ (210,057) $ 229,944
============ ===========
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 $ (1,629) $ 1,783
Limited Partners $ (1,629) $ 1,783
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF OPERATIONS
Three Months Three Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 98,643 $ 456,016
Interest Income - 1,265
Loss on Sale of Equipment (161,700) (68,580)
---------- ----------
TOTAL REVENUES (63,057) 388,701
---------- ----------
OPERATING EXPENSES:
Interest 15,965 67,440
Depreciation & Amortization 39,552 302,351
Remarketing Commissions Paid
to Outside Lease Brokers 44,438 4,901
Administrative 27,519 46,526
---------- ----------
TOTAL OPERATING EXPENSES 127,474 421,218
---------- ----------
NET LOSS $ (190,531) $ (32,517)
========== ==========
NET LOSS ALLOCATED TO:
General Partners $ (1,905) $ (325)
Limited Partners (188,626) (32,192)
---------- ----------
$ (190,531) $ (32,517)
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.2894 1.2894
Limited Partners 127.6554 127.6554
LOSS PER WEIGHTED AVERAGE UNIT:
General Partners $ (1,477) $ (252)
Limited Partners $ (1,477) $ (252)
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING VIII L.P.
STATEMENT OF PARTNERS' EQUITY
Six Months Ended June 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 (167,584) (1,676) (165,908)
NET LOSS (210,057) (2,101) (207,956)
---------- --------- ----------
PARTNERS' DEFICIT
End of period $ (196,690) $ (1,422) $ (195,268)
========== ========= ==========
<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>
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (210,057) $ 229,944
Adjustments to reconcile
net (loss) income to net
cash provided by operating
activities:
Depreciation & Amortization 134,297 624,592
Loss on sale of equipment
under lease 161,700 44,376
Amortization of unearned
income (51,924) (153,217)
Changes in assets and liabilities:
Decrease in accounts receivable 19,798 (1,450)
Increase in prepaid expense (991) -
Increase in accounts payable 39,807 28,802
Decrease in other liabilities (3,037) (39,285)
----------- -----------
Net cash provided by
operating activities 89,593 733,762
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of computer equipment
on lease - (108,393)
Principal payments received under
direct financing leases 1,288,102 1,367,790
Proceeds from sale of
equipment under lease 10,641 703,807
----------- -----------
Net cash provided by
investing activities 1,298,743 1,963,204
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (167,584) (708,784)
Proceeds from issuance of
nonrecourse debt 161,524 221,312
Principal payments of
nonrecourse debt (1,370,124) (2,176,455)
----------- -----------
Net cash (used in)
financing activities (1,376,184) (2,663,927)
----------- -----------
NET INCREASE IN CASH
AND EQUIVALENTS 12,152 33,039
CASH AND EQUIVALENTS,
at the beginning of the period 78,906 59,415
CASH AND EQUIVALENTS,
at the end of the period $ 91,058 $ 92,454
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 44,221 $ 156,169
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 13
<PAGE>
TRIUMPHE LEASING VIII L.P.
STATEMENTS OF CASH FLOWS
Three Months Three Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
[S] [C] [C]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (190,531) $ 141,969
Adjustments to reconcile
net (loss) income to net
cash provided by operating
activities:
Depreciation & Amortization 39,552 302,351
Loss on sale of equipment
under lease 161,700 68,579
Amortization of unearned income (19,347) (71,118)
Changes in assets and liabilities:
Increase in accounts receivable (12,273) -
Decrease in prepaid expenses 495 726
Increase (Decrease) in accounts
payable 9,393 (17,689)
Decrease in other liabilities (5,629) (1,773)
----------- -----------
Net cash (used in) provided
by operating activities (16,640) 423,045
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of computer equipment
on lease - (88,617)
Principal payments received under
direct financing leases 644,051 666,779
Proceeds from sale of equipment
under lease 10,641 574,532
----------- -----------
Net cash provided by
investing activities 654,692 1,152,694
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (103,124) (579,839)
Proceeds from issuance of
nonrecourse debt 161,524 88,595
Principal payments of
nonrecourse debt (665,239) (1,077,209)
----------- -----------
Net cash (used in)
financing activities (606,839) (1,568,453)
----------- -----------
NET INCREASE IN CASH
AND EQUIVALENTS 31,213 7,286
CASH AND EQUIVALENTS,
at the beginning of the period 59,845 85,168
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 91,058 $ 92,454
=========== ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 15,965 $ 67,440
[FN]
See accompanying notes to financial statements (Unaudited)
[/TABLE]
Page 8 of 13
<PAGE>
TRIUMPHE LEASING VIII L.P.
NOTES TO FINANCIAL STATEMENTS
[CAPTION]
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at June 30, 1997
and each of the six months and three months ended June 30, 1997,
and June 30, 1996, is unaudited and, in the opinion of the
partnership, reflects all adjustments (which include only normal
recurring adjustments) necessary for the fair presentation 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 June 30, 1997 was
the twenty-second 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 June 30, 1997:
Total minimum lease payments to be received $ 351,974
Estimated residual values of leased property 202,972
Less: Unearned income (25,142)
-----------
Net investment in leases $ 529,804
===========
At June 30, 1997, minimum lease payments for direct
financing and operating leases for each of the 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 June 30, 1997 the partnership had acquired $19,119,937
of leased equipment with an equity investment of $2,157,130 and
non-recourse bank borrowing of $16,962,807.
OPERATIONS
Total revenues decreased to $89,775 for the first two quarters of
the fiscal year ending December 31, 1997 ("fiscal 1997") from
$1,119,001 for the first two 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 two quarters of fiscal 1996 to the
first two quarters of fiscal 1997, was due primarily to the loss
of rental income attributable to the expiration of leases and the
loss on sale of equipment.
Operating expenses decreased to $299,832 for the first two
quarters of fiscal 1997 from $889,057 for the first two 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 two quarters of fiscal 1996 to the first two 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 June 30, 1997 include undistributed cash available
from operations during the period March 27, 1992 to June 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 non-recourse 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 August 12, 1997 By: /s/ Gerald A. Horwitz
--------------------- -------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date August 12, 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 August 12, 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> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-31-1997
<PERIOD-END> Jun-30-1997
<CASH> 91,058
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 591,962
<PP&E> 1,194,254
<DEPRECIATION> 956,886
<TOTAL-ASSETS> 883,440
<CURRENT-LIABILITIES> 909,476
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 883,440
<SALES> 0
<TOTAL-REVENUES> 89,775
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 44,221
<INCOME-PRETAX> (210,057)
<INCOME-TAX> 0
<INCOME-CONTINUING> (210,057)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
