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, 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 11
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING VIII L.P.
BALANCE SHEETS
<CAPTION>
March 31, 1998 December 31, 1997
-------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 15,575 $ 83,982
Accounts receivable 987 1,250
Net investment in direct
financing leases 78,808 74,866
--------- ----------
TOTAL CURRENT ASSETS 95,370 160,098
--------- ----------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$ 898,970 and $ 876,589 141,625 166,603
--------- ----------
OTHER ASSETS:
Net investment in direct
financing leases,
less current portion - 21,052
---------- ----------
$ 236,995 $ 347,753
========== ==========
<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, 1998 December 31, 1997
-------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 6,205 $ -
Current maturities of
long-term debt 211,008 227,060
Other liabilities 3,073 3,601
--------- ---------
TOTAL CURRENT LIABILITIES 220,286 230,661
--------- ---------
Long-term debt,
less current maturities 142,196 183,411
Accrued management fees 452,039 470,845
--------- ---------
TOTAL LONG-TERM LIABILITIES 594,235 654,256
--------- ---------
TOTAL LIABILITIES 814,521 884,917
--------- ---------
PARTNERS' DEFICIT:
General Partners (5,231) (4,827)
Limited Partners (572,295) (532,337)
--------- ---------
TOTAL PARTNERS' DEFICIT (577,526) (537,164)
--------- ---------
$ 236,995 $ 347,753
========= =========
<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, 1998 March 31, 1997
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 60,635 $ 152,788
Interest Income 604 45
Loss on Sale of Equipment (1,000) -
---------- ----------
TOTAL REVENUES 60,239 152,833
---------- ----------
OPERATING EXPENSES:
Interest 7,423 28,256
Depreciation & Amortization 22,978 94,746
Remarketing Commissions Paid
to Outside Lease Brokers 4,763 1,160
Administrative 978 48,198
---------- ----------
TOTAL OPERATING EXPENSES 36,142 172,360
---------- ----------
NET INCOME (LOSS) $ 24,097 $ (19,527)
========== ==========
NET INCOME (LOSS) ALLOCATED TO:
General Partners $ 241 $ (195)
Limited Partners 23,856 (19,332)
---------- ----------
$ 24,097 $ (19,527)
========== ==========
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 WEIGHTED AVERAGE UNIT:
General Partners $ 187 $ (151)
Limited Partners $ 187 $ (151)
<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' DEFICIT
Three Months Ended March 31, 1998
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
--------- -------- --------
<S> <C> <C> <C>
PARTNERS' DEFICIT
Beginning of period $ (537,164) $ (4,827) $ (532,337)
DISTRIBUTIONS (64,459) (645) (63,814)
NET INCOME 24,097 241 23,856
---------- -------- ----------
PARTNERS' DEFICIT
End of period $ (577,526) $ (5,231) $ (572,295)
========== ======== ==========
<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
Three Months Three Months
Ended Ended
March 31, 1998 March 31, 1997
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 24,097 $ (19,527)
Adjustments to reconcile
net income (loss) to net
cash provided by operating
activities:
Depreciation & amortization 22,978 94,746
Loss on sale of equipment
under lease 1,000 -
Amortization of unearned income (4,567) (32,577)
Changes in assets and liabilities:
Decrease in accounts receivable 263 32,071
Increase in prepaid expenses - (1,486)
(Decrease) Increase in accounts
payable and accrued management
fees (12,601) 30,414
(Decrease) Increase in other
liabilities (528) 2,592
---------- -----------
Net cash provided by
operating activities 30,642 106,233
---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 21,677 644,050
Proceeds from sale of equipment
under lease 1,000 -
---------- -----------
Net cash provided by
investing activities 22,677 644,050
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (64,459) (64,459)
Principal payments of nonrecourse
debt (57,267) (704,885)
----------- -----------
Net cash used in
financing activities (121,726) (769,344)
----------- -----------
NET DECREASE IN CASH AND EQUIVALENTS (68,407) (19,061)
CASH AND EQUIVALENTS,
at the beginning of the period 83,982 78,906
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 15,575 $ 59,845
=========== ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 7,423 $ 28,256
<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
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at March 31,
1998 and each of the three months ended March 31, 1998, and March
31, 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 March 31, 1998 was
the twenty-fifth 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 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 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, 1998:
Total minimum lease payments to be received $ 79,484
Estimated residual values of leased property 6,972
Less: Unearned income 7,648
----------
Net investment in leases $ 78,808
==========
At March 31, 1998, 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
1998 304,948
1999 164,628
2000 49,750
Page 8 of 11
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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 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, 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 $ 60,239 for the first quarter of the
fiscal year ending December 31, 1998 ("fiscal 1998") from
$152,833 for the first quarter 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 quarter of fiscal 1997 to the first
quarter of fiscal 1998 was due primarily to the loss of rental
income attributable to the expiration of leases.
Operating expenses decreased to $ 36,142 for the first quarter of
fiscal 1998 from $172,360 for the first quarter 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 quarter of fiscal 1997 to the first quarter 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 March 31, 1998 include undistributed cash
available from operations during the period March 27, 1992 to
March 31, 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 9 of 11
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TRIUMPHE LEASING VIII L.P.
PART II - OTHER INFORMATION
NONE
Page 10 of 11
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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 April 29, 1998 By: /s/ Gerald A. Horwitz
----------------------------
Gerald A. Horwitz, President
of the Corporate General
Partner
(Principal Executive Officer)
Date April 29, 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 April 29, 1998 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-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Mar-31-1998
<CASH> 15,575
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 95,370
<PP&E> 1,040,595
<DEPRECIATION> 898,970
<TOTAL-ASSETS> 236,995
<CURRENT-LIABILITIES> 220,286
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 236,995
<SALES> 0
<TOTAL-REVENUES> 60,239
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,423
<INCOME-PRETAX> 24,097
<INCOME-TAX> 0
<INCOME-CONTINUING> 24,097
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
