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, 1998
[ ] 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, 1998 December 31, 1997
------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 88,424 $ 83,982
Accounts Receivable 987 1,250
Net investment in direct
financing leases - 74,866
--------- ---------
TOTAL CURRENT ASSETS 89,411 160,098
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$922,141 and $876,589 125,426 166,603
--------- ---------
OTHER ASSETS:
Net investment in direct
financing leases - 21,052
--------- ---------
TOTAL OTHER ASSETS
$ 214,837 $ 347,753
========= =========
<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, 1998 December 31, 1997
------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,814 $ -
Current maturities of
long-term debt 157,310 227,060
Other liabilities 11,032 3,601
----------- -----------
TOTAL CURRENT LIABILITIES 171,156 230,661
----------- -----------
LONG-TERM DEBT,
less current maturities 217,033 183,411
Accrued Management Fees 454,487 470,845
----------- -----------
TOTAL LONG-TERM LIABILITIES 671,520 654,256
TOTAL LIABILITIES 842,676 884,917
----------- -----------
PARTNERS' DEFICIT:
General Partners (5,734) (4,827)
Limited Partners (622,105) (532,337)
----------- -----------
TOTAL PARTNERS' DEFICIT (627,839) (537,164)
----------- -----------
$ 214,837 $ 347,753
=========== ===========
<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, 1998 June 30, 1997
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 129,416 $ 251,430
Interest Income 604 45
Loss on Sale of Equipment (60,846) (161,700)
----------- -----------
TOTAL REVENUES 69,174 89,775
----------- -----------
OPERATING EXPENSES:
Interest 13,853 44,221
Depreciation & Amortization 46,149 134,297
Remarketing Commissions Paid
to Outside Lease Brokers 10,773 45,598
Administrative 5,249 75,716
----------- -----------
TOTAL OPERATING EXPENSES 76,024 299,832
----------- -----------
NET LOSS $ (6,850) $ (210,057)
=========== ===========
NET LOSS ALLOCATED TO:
General Partners $ (69) $ (2,101)
Limited Partners (6,781) (207,956)
----------- -----------
$ (6,850) $ (210,057)
=========== ===========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.2894 1.2894
Limited Partners 127.6554 127.6554
BASIC AND FULLY DILUTED EARNINGS PER UNIT:
General Partners $ (53) $ (1,629)
Limited Partners $ (53) $ (1,629)
<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, 1998 June 30, 1997
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 68,781 $ 98,643
Loss on Sale of Equipment (59,846) (161,700)
---------- ----------
TOTAL REVENUES 8,935 (63,057)
---------- ----------
OPERATING EXPENSES:
Interest 6,430 15,965
Depreciation & Amortization 23,171 39,552
Remarketing Commissions Paid
to Outside Lease Brokers 6,009 44,438
Administrative 4,272 27,519
---------- ----------
TOTAL OPERATING EXPENSES 39,882 127,474
---------- ----------
NET LOSS $ (30,947) $ (190,531)
========== ==========
NET LOSS ALLOCATED TO:
General Partners $ (309) $ (1,905)
Limited Partners (30,638) (188,626)
---------- ----------
$ (30,947) $ (190,531)
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.2894 1.2894
Limited Partners 127.6554 127.6554
BASIC AND FULLY DILUTED EARNINGS PER UNIT:
General Partners $ (240) $ (1,477)
Limited Partners $ (240) $ (1,477)
<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, 1998
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
----- -------- --------
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ (537,164) $ (4,827) $ (532,337)
DISTRIBUTIONS (83,825) (838) (82,987)
NET LOSS (6,850) (69) (6,781)
---------- --------- ----------
PARTNERS' DEFICIT
End of period $ (627,839) $ (5,734) $ (622,105)
========== ========= ==========
<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, 1998 June 30, 1997
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (6,850) $ (210,057)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depreciation & Amortization 46,149 134,297
Loss on sale of equipment
under lease 60,846 161,700
Amortization of unearned
income (7,029) (51,924)
Changes in assets and liabilities:
Decrease in accounts receivable 263 19,798
(Decrease) in prepaid expense - (991)
Increase (Decrease) in
accounts payable 2,814 (4,718)
(Decrease) Increase in
accrued management fees (16,358) 44,525
Increase (Decrease) in other
liabilities 7,431 (3,037)
----------- -----------
Net cash provided by
operating activities 87,266 89,593
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 36,129 1,288,102
Proceeds from sale of
equipment under lease 1,000 10,641
----------- -----------
Net cash provided by
investing activities 37,129 1,298,743
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (83,825) (167,584)
Proceeds from issuance of
nonrecourse debt 75,718 161,524
Principal payments of
nonrecourse debt (111,846) (1,370,124)
----------- -----------
Net cash used in
financing activities (119,953) (1,376,184)
----------- -----------
NET INCREASE IN CASH
AND EQUIVALENTS 4,442 12,152
CASH AND EQUIVALENTS,
at the beginning of the period 83,982 78,906
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 88,424 $ 91,058
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 13,853 $ 44,221
<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, 1998 June 30, 1997
------------- -------------
(Unaudited) (Unaudited)
[S] [C] [C]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (30,947) $ (190,531)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depreciation & Amortization 23,171 39,552
Loss on sale of equipment
under lease 59,846 161,700
Amortization of unearned income (2,462) (19,347)
Changes in assets and liabilities:
Increase in accounts receivable - (12,273)
Decrease in prepaid expenses - 495
(Decrease) Increase in accounts
payable (3,391) (12,315)
Increase in accrued management
fees 2,448 21,708
Increase (Decrease) in other
liabilities 7,959 (5,629)
----------- -----------
Net cash provided by
(used in) operating
activities 56,624 (16,640)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 14,452 644,051
Proceeds from sale of equipment
under lease - 10,641
----------- -----------
Net cash provided by
investing activities 14,452 654,692
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (19,366) (103,124)
Proceeds from issuance of
nonrecourse debt 75,718 161,524
Principal payments of
nonrecourse debt (54,579) (665,239)
----------- -----------
Net cash provided by
(used in) financing
activities 1,773 (606,839)
----------- -----------
NET INCREASE IN CASH
AND EQUIVALENTS 72,849 31,213
CASH AND EQUIVALENTS,
at the beginning of the period 15,575 59,845
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 88,424 $ 91,058
=========== ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 6,430 $ 15,965
[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, 1998
and each of the six months and three months ended June 30, 1998,
and June 30, 1997, 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, 1998 was
the twenty-sixth 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
At June 30, 1998, 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
1999 192,716
2000 92,290
2001 42,540
2002 7,090
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, 1998 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 $69,174 for the first two quarters of
the fiscal year ending December 31, 1998 ("fiscal 1998") from
$89,775 for the first two quarters of the fiscal year ended
December 31, 1997 ("fiscal 1997"). Total revenues consist of
lease rental income, interest earned on short-term money market
investments, and the net loss on sale of equipment. The decrease
in total revenues from the first two quarters of fiscal 1997 to
the first two quarters of fiscal 1998, was due primarily to the
loss of rental income attributable to the expiration of leases
and the net loss on sale of equipment.
Operating expenses decreased to $76,024 for the first two
quarters of fiscal 1998 from $299,832 for the first two quarters
of fiscal 1997. 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 1997 to the first two quarters
of fiscal 1998 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, 1998 include undistributed cash available
from operations during the period March 27, 1992 to June 30,
1998.
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 5, 1998 By: /s/ Gerald A. Horwitz
--------------------- -------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date August 5, 1998 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 5, 1998 By: /s/ Gerald A. Horwitz
-------------------- -------------------------------
Gerald A. Horwitz
Its: General Partner
Page 13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-31-1998
<PERIOD-END> Jun-30-1998
<CASH> 88,424
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 89,411
<PP&E> 1,047,567
<DEPRECIATION> 922,141
<TOTAL-ASSETS> 214,837
<CURRENT-LIABILITIES> 171,156
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 214,837
<SALES> 0
<TOTAL-REVENUES> 69,174
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,853
<INCOME-PRETAX> (6,850)
<INCOME-TAX> 0
<INCOME-CONTINUING> (6,850)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
