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, 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>
September 30, 1998 December 31, 1997
------------------ -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 28,284 $ 83,982
Net investment in direct
financing leases - 74,866
Accounts receivable 3,847 1,250
---------- ----------
TOTAL CURRENT ASSETS 32,131 160,098
---------- ----------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$910,020 and $876,589 101,867 166,603
---------- ----------
OTHER ASSETS:
Net investment in direct
financing leases - 21,052
---------- ----------
$ 133,998 $ 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>
September 30, 1998 December 31, 1997
------------------ -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 360 $ -
Current maturities of
long-term debt 147,003 227,060
Other liabilities 7,251 3,601
----------- -----------
TOTAL CURRENT LIABILITIES 154,614 230,661
=========== ===========
LONG-TERM DEBT,
less current maturities 180,387 183,411
Accrued management fees 456,493 470,845
----------- -----------
TOTAL LONG-TERM LIABILITIES 636,880 654,256
----------- -----------
TOTAL LIABILITIES 791,494 884,917
----------- -----------
PARTNERS' DEFICIT:
General Partners (6,031) (4,827)
Limited Partners (651,465) (532,337)
----------- -----------
TOTAL PARTNERS' DEFICIT (657,496) (537,164)
----------- -----------
$ 133,998 $ 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>
Nine Months Nine Months
Ended Ended
September 30, 1998 September 30, 1997
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 198,979 $ 324,022
Interest Income 604 45
Loss on Sale of Equipment (59,691) (152,925)
----------- -----------
TOTAL REVENUES 139,892 171,142
----------- -----------
OPERATING EXPENSES:
Interest 20,548 52,257
Depreciation & Amortization 69,708 171,565
Remarketing Commissions Paid
to Outside Lease Brokers 13,913 105,445
Administrative 7,770 50,624
----------- -----------
TOTAL OPERATING EXPENSES 111,939 379,891
----------- -----------
NET INCOME (LOSS) $ 27,953 $ (208,749)
=========== ===========
NET INCOME (LOSS) ALLOCATED TO:
General Partners $ 280 $ (2,087)
Limited Partners 27,673 (206,662)
----------- -----------
$ 27,953 $ (208,749)
=========== ===========
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 $ 217 $ (1,619)
Limited Partners $ 217 $ (1,619)
<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, 1998 September 30, 1997
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 69,562 $ 72,592
Gain on Sale
of Equipment 1,155 8,775
----------- -----------
TOTAL REVENUES 70,717 81,367
----------- -----------
OPERATING EXPENSES:
Interest 6,695 8,036
Depreciation & Amortization 23,559 37,268
Remarketing Commissions Paid
to Outside Lease Brokers 3,140 59,848
Administrative 2,521 (25,093)
----------- -----------
TOTAL OPERATING EXPENSES 35,915 80,059
----------- -----------
NET INCOME $ 34,802 $ 1,308
=========== ===========
NET INCOME ALLOCATED TO:
General Partners $ 348 $ 13
Limited Partners 34,454 1,295
----------- -----------
$ 34,802 $ 1,308
=========== ===========
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 $ 270 $ 10
Limited Partners $ 270 $ 10
<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, 1998
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
----- -------- --------
<S> <C> <C> <C>
PARTNERS' DEFICIT
Beginning of period $(537,164) $ (4,827) $(532,337)
DISTRIBUTIONS (148,285) (1,484) (146,801)
NET INCOME 27,953 280 27,673
---------- --------- ----------
PARTNERS' DEFICIT
End of period $(657,496) $ (6,031) $(651,465)
========== ========= ==========
<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, 1998 September 30, 1997
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 27,953 $ (208,749)
Adjustments to reconcile
net income (loss) to net
cash provided by operating
activities:
Depreciation & amortization 69,708 171,565
Loss on sale of equipment
under lease 59,691 152,925
Amortization of unearned
income (7,029) (59,452)
Changes in assets and liabilities:
(Increase) decrease in
accounts receivable (2,597) 38,824
Increase in prepaid expenses - (496)
Increase in accounts payable 360 29,946
Decrease in accrued management
fees (14,352) (27,149)
Decrease (increase) in other
liabilities 3,650 (22,342)
---------- ----------
Net cash provided by
operating activities 137,384 75,072
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 36,129 1,517,238
Proceeds from sale of
equipment under lease 2,155 14,826
---------- ----------
Net cash provided by
investing activities 38,284 1,532,064
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (148,285) (232,043)
Proceeds from issuance of
nonrecourse debt 75,718 161,524
Principal payments of
nonrecourse debt (158,799) (1,480,124)
----------- -----------
Net cash used in
financing activities (231,366) (1,550,643)
----------- -----------
NET (DECREASE) INCREASE IN CASH
AND EQUIVALENTS (55,698) 56,493
CASH AND EQUIVALENTS,
at the beginning of the period 83,982 78,906
CASH AND EQUIVALENTS,
at the end of the period $ 28,284 $ 135,399
=========== ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 20,548 $ 52,257
<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, 1998 September 30, 1997
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 34,802 $ 1,308
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation & amortization 37,268
Loss on sale of
equipment under lease 23,559 (8,775)
Amortization of unearned income (1,155) (7,528)
Changes in assets and liabilities:
(Increase) Decrease in accounts
receivable (2,860) 19,026
Decrease in prepaid expenses - 495
Decrease in accounts payable (2,454) (54,386)
Increase in accrued management
fees 2,006 17,376
Decrease in other liabilities (3,781) (19,305)
---------- ----------
Net cash provided (used in)
by operating activities 50,117 (14,521)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases - 229,136
Proceeds from sale of
equipment under lease 1,155 4,185
---------- ----------
Net cash provided by
investing activities 1,155 233,321
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (64,460) (64,459)
Principal payments of
nonrecourse debt (46,952) (110,000)
---------- ----------
Net cash used in
financing activities (111,412) (174,459)
---------- ----------
NET (DECREASE) INCREASE IN
CASH AND EQUIVALENTS (60,140) 44,341
CASH AND EQUIVALENTS,
at the beginning of the period 88,424 91,058
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 28,284 $ 135,399
========== ==========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 6,695 $ 8,036
<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,
1998 and each of the nine months and three months ended September
30, 1998 and September 30, 1997, 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, 1998
was the twenty-seventh 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 September 30, 1998, 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
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 September 30, 1998 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 $139,892 for the first three quarters
of the fiscal year ending December 31, 1998 ("fiscal 1998") from
$171,142 for the first three 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 loss on sale of equipment. The decrease in
total revenues from the first three quarters of fiscal 1997 to
the first three quarters of fiscal 1998, was due primarily to the
loss of rental income attributable to the expiration of leases.
Operating expenses decreased to $111,939 for the first three
quarters of fiscal 1998 from $379,891 for the first three
quarters of fiscal 1997. Operating expenses consist of interest
on nonrecourse financing of equipment purchased, depreciation of
equipment, and administrative expenses. The decrease in
operating expenses from the first three quarters of fiscal 1997
to the first three 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 September 30, 1998 include undistributed cash
available from operations during the period March 27, 1992 to
September 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 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 By: /s/ Gerald A. Horwitz
-------------------- -------------------------------
Gerald A. Horwitz, President
of the Corporate General Partner
(Principal Executive Officer)
Date By: /s/ Jerry L. Schwartz
-------------------- --------------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer
of the Corporate General Partner
(Principal Financial and
Accounting Officer)
Date 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-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Sep-30-1998
<CASH> 28,284
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 32,131
<PP&E> 1,011,887
<DEPRECIATION> 910,020
<TOTAL-ASSETS> 133,998
<CURRENT-LIABILITIES> 154,614
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 133,998
<SALES> 0
<TOTAL-REVENUES> 139,892
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 20,548
<INCOME-PRETAX> 27,953
<INCOME-TAX> 0
<INCOME-CONTINUING> 27,953
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
