Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|X| Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the quarterly period ended September 30, 1996
|_| Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the transition period from _______ to _______
Commission File Number 000-23842
ATEL Cash Distribution Fund V, L.P.
(Exact name of registrant as specified in its charter)
California 94-3165807
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 989-8800
Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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.
Yes |X|
No |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
Page 1 of 16
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1: Financial Statements.
Page 2
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(Unaudited)
ASSETS
1996 1995
---- ----
Cash $705,946 $2,401,318
Accounts receivable 2,265,253 2,377,496
Other assets 10,000 10,000
Investments in leases 132,191,179 131,686,535
----------------- -----------------
$135,172,378 $136,475,349
================= =================
LIABILITIES AND PARTNERS' CAPITAL
Non-recourse debt $43,271,055 $19,129,298
Line of credit 9,921,855 26,292,088
Accounts payable
Equipment purchases - 14,097
General Partner 415,743 1,026,433
Other 1,094,458 814,853
Accrued interest 248,640 381,631
Deposits due to lessees - 627,508
Unearned lease income 664,308 817,306
----------------- -----------------
Total liabilities 55,616,059 49,103,214
Partners' capital:
General Partner 46,832 22,568
Limited Partners 79,509,487 87,349,567
----------------- -----------------
Total partners' capital 79,556,319 87,372,135
----------------- -----------------
Total liabilities and partners' capital $135,172,378 $136,475,349
================= =================
See accompanying notes.
Page 3
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
INCOME STATEMENTS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Leasing activities:
Operating leases $15,657,716 $13,654,117 $5,295,942 $4,402,014
Direct financing leases 2,307,810 931,759 750,371 397,519
Leveraged leases 133,133 142,419 45,256 60,183
Gain on sales of assets 944,993 897,258 807,692 10,197
Interest income 33,621 86,619 11,666 21,118
Other 40,745 5,699 24,715 2,296
---------------- ---------------- ----------------- -----------------
19,118,018 15,717,871 6,935,642 4,893,327
Expenses:
Depreciation and amortization 11,749,993 10,959,534 3,806,160 3,441,925
Management fees 1,278,434 1,391,587 415,742 576,404
Interest 2,912,991 573,954 988,625 286,401
Administrative cost reimbursements 324,503 365,050 123,390 118,661
Provision for losses 192,824 157,178 71,000 48,933
Other 393,861 193,231 184,156 47,240
---------------- ---------------- ----------------- -----------------
16,852,606 13,640,534 5,589,073 4,519,564
---------------- ---------------- ----------------- -----------------
Income before extraordinary item 2,265,412 2,077,337 1,346,569 373,763
Extraordinary gain on early extinguishment of debt 160,955 - 160,955 -
---------------- ---------------- ----------------- -----------------
Net income $2,426,367 $2,077,337 $1,507,524 $373,763
================ ================ ================= =================
Net income:
General Partner $24,264 $20,773 $15,075 $3,738
Limited Partners 2,402,103 2,056,564 1,492,449 370,025
---------------- ---------------- ----------------- -----------------
$2,426,367 $2,077,337 $1,507,524 $373,763
================ ================ ================= =================
Income before extraordinary item per limited
partnership unit $0.18 $0.16 $0.11 $0.03
Extraordinary gain on early extinguishment of
debt per limited partnership unit 0.01 - 0.01 -
---------------- ---------------- ----------------- -----------------
Net income per Limited Partnership unit $0.19 $0.16 $0.12 $0.03
================ ================ ================= =================
Weighted average number of units outstanding 12,497,000 12,498,550 12,497,517 12,499,050
</TABLE>
See accompanying notes.
Page 4
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
NINE MONTH PERIOD ENDED
SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners General
Units Amount Partner Total
----- ------ ------- -----
<S> <C> <C> <C> <C> <C> <C>
Balance December 31, 1995 12,498,550 $87,349,567 $22,568 $87,372,135
Limited partnership units repurchased (1,550) (5,512) - (5,512)
Distributions to limited partners (10,236,671) - (10,236,671)
Net income 2,402,103 24,264 2,426,367
---------------- ---------------- ----------------- -----------------
Balance September 30, 1996 12,497,000 $79,509,487 $46,832 $79,556,319
================ ================ ================= =================
</TABLE>
See accompanying notes.
Page 5
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
STATEMENT OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operating activities:
Net income $2,426,367 $2,077,337 $1,507,524 $373,763
Adjustments to reconcile net income to net cash
provided by operations
Depreciation and amortization 11,749,993 10,959,534 3,806,160 3,441,925
Leveraged lease income - -
Gain on sale of assets (944,993) (897,258) (807,692) (10,197)
Provision for losses 192,824 157,178 71,000 48,933
Extraordinary gain on early extinguishment of
non-recourse debt (160,955) - (160,955) -
Changes in operating assets and liabilities:
Accounts receivable 112,243 (740,681) 1,067,855 (380,068)
Accounts payable, General Partner (610,690) (719,270) 101,886 279,953
Accounts payable, other 279,605 243,558 466,557 196,535
Unearned lease income (152,998) (173,693) (17,380) (66,313)
Accrued interest (132,991) 40,751 (28,136) 46,248
Deposits due to lessees (627,508) (217) (124,235) -
---------------- ---------------- ----------------- -----------------
Net cash provided by operating activities 12,130,897 10,947,239 5,882,584 3,930,779
---------------- ---------------- ----------------- -----------------
Investing activities:
Purchase of equipment on operating leases (16,685,908) (12,513,976) 397,754 (7,957,984)
Purchase of equipment on direct financing leases (3,608,007) (8,062,884) (2,267,692) (1,058,264)
Purchase of equipment on leveraged leases - (2,099,438) - (2,099,438)
Purchase of residual value interests - (835,760) - (835,760)
Purchase of equipment held for lease - (14,064) - (14,064)
Reductions in investment in direct financing leases 2,809,303 1,406,906 271,884 365,091
Reductions in investment in leveraged leases 265,995 631,706 124,678 315,300
Payments of initial direct lease costs to General
Partner (147,072) (832,331) (9,051) (443,103)
Proceeds from sales of assets 5,849,124 5,689,517 5,601,636 (239,321)
---------------- ---------------- ----------------- -----------------
Net cash (used in) provided by investing activities (11,516,565) (16,630,324) 4,119,209 (11,967,543)
---------------- ---------------- ----------------- -----------------
</TABLE>
Page 6
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
STATEMENT OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Financing activities:
Proceeds of non-recourse debt 30,773,576 7,122,120 6,459,485 2,556,353
Borrowings under line of credit 19,596,000 8,987,535 1,500,000 3,954,370
Repayments of non-recourse debt (6,470,864) (966,273) (3,230,704) (546,917)
Repayment of line of credit (35,966,233) (5,033,165) (11,265,026) -
Limited partnership units repurchased (5,512) - (4,293) -
Capital contributions rescinded - (15,000) - -
Payment of syndication costs - (89,138) - (2,294)
Distributions to limited partners (10,236,671) (9,819,924) (3,436,692) (3,281,866)
---------------- ---------------- ----------------- -----------------
Net cash (used in) provided by financing activities (2,309,704) 186,155 (9,977,230) 2,679,646
---------------- ---------------- ----------------- -----------------
Net (decrease) increase in cash and cash
equivalents (1,695,372) (5,496,930) 24,563 (5,357,118)
Cash and cash equivalents at beginning
of period 2,401,318 5,956,752 681,383 5,816,940
---------------- ---------------- ----------------- -----------------
Cash and cash equivalents at end of period $705,946 $459,822 $705,946 $459,822
================ ================ ================= =================
Supplemental disclosure of cash flow information:
Cash paid for interest during period $3,045,982 $533,203 $1,016,761 $240,153
================ ================ ================= =================
Supplemental disclosure of non-cash transactions:
Gain on extinguishment of non-recourse debt $160,955 $160,955
================ =================
</TABLE>
See accompanying notes.
Page 7
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
1. Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Organization and partnership matters:
ATEL Cash Distribution Fund V, L.P. (the Partnership), was formed under the laws
of the State of California on September 23, 1992, for the purpose of acquiring
equipment to engage in equipment leasing and sales activities. Contributions in
the aggregate of $600 were received as of October 6, 1992, $100 of which
represented the General Partner's continuing interest, and $500 of which
represented the Initial Limited Partners' capital investment.
Upon the sale of the minimum amount of Units of Limited Partnership interest
(Units) of $1,200,000 and the receipt of the proceeds thereof on March 19, 1993,
the Partnership commenced operations. The Fund or the General Partner on behalf
of the Fund, will incur costs in connection with the organization, registration
and issuance of the Units. The amount of such costs to be born by the Fund is
limited by certain provisions in the Agreement of Limited Partnership.
The Fund does not make a provision for income taxes since all income and losses
will be allocated to the Partners for inclusion in their individual tax returns.
3. Investment in leases:
The Partnership's investment in leases consists of the following:
<TABLE>
<CAPTION>
Depreciation
Expense or Reclass-
December 31, Amortization ifications & September 30,
1995 Additions of Leases Dispositions 1996
---- --------- --------- - ------------- ----
<S> <C> <C> <C> <C> <C>
Net investment in operating leases $90,328,014 $16,671,811 ($10,800,467) ($5,499,340) $90,700,018
Net investment in direct financing leases 32,688,774 3,608,007 (2,809,303) (479,965) 33,007,513
Net investment in leveraged leases 4,854,410 - (265,995) (262,125) 4,326,290
Residual value interests 835,760 - - - 835,760
Equipment held for sale or lease - - (32,353) 559,132 526,779
Initial direct costs, net of accumulated
amortization of $1,235,932 in 1995 and
$2,029,792 in 1996. 4,000,748 147,072 (917,173) - 3,230,647
Reserve for losses (1,021,171) (192,824) - 778,167 (435,828)
----------------- ---------------- ---------------- ----------------- -----------------
$131,686,535 $20,234,066 ($14,825,291) ($4,904,131) $132,191,179
================= ================ ================ ================= =================
</TABLE>
Page 8
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
3. Investments in leases (continued):
The following schedule provides an analysis of the Partnership's investment in
property on operating leases by major classifications as of December 31, 1995,
acquisitions and dispositions during the quarters ended March 31, June 30 and
September 30, 1996 and as of September 30, 1996.
<TABLE>
<CAPTION>
December 31, Acquisitions, Dispositions & Reclassifications September 30,
1995 1st Quarter 2nd Quarter 3rd Quarter 1996
---- ----------- ----------- ----------- ----
<S> <C> <C> <C> <C> <C>
Transportation $34,422,258 $12,746,114 ($310,270) ($3,633,208) $43,224,894
Construction 24,075,113 - - - 24,075,113
Materials handling 17,778,985 243,659 9,296 25,162 18,057,102
Mining 15,164,692 - - - 15,164,692
Furniture and fixtures 10,475,743 - - (3,365,947) 7,109,796
Manufacturing 2,834,155 294,000 347,430 - 3,475,585
Office automation 2,076,126 531,879 4,101 (233,950) 2,378,156
Printing 2,325,000 - - - 2,325,000
Food processing 1,826,162 - - - 1,826,162
Other 353,612 - - - 353,612
----------------- ---------------- ---------------- ----------------- -----------------
111,331,846 13,815,652 50,557 (7,207,943) 117,990,112
Less accumulated depreciation (21,003,832) (2,779,759) (3,802,425) 295,922 (27,290,094)
----------------- ---------------- ---------------- ----------------- -----------------
$90,328,014 $11,035,893 ($3,751,868) ($6,912,021) $90,700,018
================= ================ ================ ================= =================
</TABLE>
All of the property on operating leases was acquired during 1993, 1994, 1995 and
1996.
At September 30, 1996, the aggregate amounts of future minimum lease payments
are as follows:
<TABLE>
<CAPTION>
Direct
Operating Financing Total
<S> <C> <C> <C>
Three months ending December 31, 1996 $5,162,199 $2,383,809 $7,546,008
Year ending December 31, 1997 16,621,049 7,474,371 24,095,420
1998 12,820,689 5,927,092 18,747,781
1999 8,528,298 5,349,689 13,877,987
2000 5,451,581 4,044,490 9,496,071
Thereafter 12,320,191 12,261,393 24,581,584
---------------- ---------------- -----------------
$60,904,007 $37,440,844 $98,344,851
================ ================ =================
</TABLE>
Page 9
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
3. Investments in leases (continued):
Direct financing leases:
The following lists the components of the Partnership's investment in direct
financing leases as of September 30, 1996.
Total minimum lease payments receivable $37,440,844
Estimated residual values of leased equipment (unguaranteed) 9,086,697
-----------------
Investment in direct financing leases 46,527,541
Less unearned income (13,520,028)
-----------------
Net investment in direct financing leases $33,007,513
=================
4. Non-recourse debt:
Notes payable to financial institutions are due in varying monthly, quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments of lease payments and pledges of the assets which were purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
8% to 13.3%.
Future minimum principal payments of non-recourse debt as of September 30, 1996
are as follows:
<TABLE>
<CAPTION>
Principal Interest Total
--------- -------- -----
<S> <C> <C> <C>
Three months ending December 31, 1996 $1,773,978 $914,181 $2,688,159
Year ending December 31, 1997 7,318,758 3,007,357 10,326,115
1998 7,988,051 2,415,955 10,404,006
1999 6,149,240 1,831,169 7,980,409
2000 4,499,311 1,377,524 5,876,835
Thereafter 15,541,717 5,621,927 21,163,644
---------------- ---------------- -----------------
$43,271,055 $15,168,113 $58,439,168
================ ================ =================
</TABLE>
5. Related party transactions:
The terms of the Agreement of Limited Partnership provide that the General
Partner and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Partnership. The
amounts above are gross amounts incurred by the General Partner and/or
affiliates, including commissions to broker-dealers for the sales of Limited
Partnership Units.
The General Partner and/or Affiliates earned the following fees and commissions,
pursuant to the Agreement of Limited Partnership as follows:
1996 1995
---- ----
Reimbursement of other syndication costs $89,138
Acquisition fees equal to 3.5% of the
equipment purchase price, for evaluating
and selecting equipment to be acquired
(not to exceed approximately 4.75% of
Gross Proceeds, included in investments
in leases in the balance sheet) $147,072 832,331
Equipment and incentive management fees 1,278,434 1,391,587
----------------- -----------------
$1,425,506 $2,313,056
================= =================
Page 10
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
6. Partner's capital:
The Fund is authorized to issue up to 12,500,000 Units of Limited Partnership
interest in addition to the Initial Limited Partners.
The Fund's Net Profits, Net Losses and Tax Credits are to be allocated 99% to
the Limited Partners and 1% to the General Partner.
As more fully described in the Agreement of Limited Partnership, available Cash
from Operations and Cash from Sales or Refinancing shall be distributed as
follows:
First, 5% of Distributions of Cash from Operations to the General Partner
as Incentive Management Fees.
Second, the balance to the Limited Partners until the Limited Partners have
received aggregate Distributions, as defined, in an amount equal to
their Original Invested Capital, as defined, plus a 10% per annum
cumulative (compounded daily) return on their Adjusted Invested
Capital, as defined.
Third, the General Partner will receive as Incentive Management Fees, the
following:
(A) 10% of remaining Cash from Operations, as defined,
(B) 15% of remaining Cash from Sales or Refinancing, as defined.
Fourth, the balance to the Limited Partners.
7. Line of credit:
The Partnership participates with the General Partner and certain of its
affiliates in a $70,000,000 revolving line of credit with a financial
institution. The line of credit expires on July 18, 1997.
The facility, when used by the Partnership, is collateralized by (i) leases and
equipment owned by the Partnership and financed by the lines and (ii) all other
assets owned by the Partnership except equipment, lease receipts and residual
values specifically pledged to other equipment funding sources.
Page 11
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
8. Extraordinary gain on extinguishment of debt:
In January 1996, Barney's, Inc., one of the Partnership's lessees filed for
reorganization under Chapter 11 of the United States Bankruptcy Code. The
Partnership determined that the assets under an operating lease to this
particular lessee were impaired as of December 31, 1995. The Partnership
estimated that only a portion of the contractual cash flows would be received
under the lease. Under Financial Accounting Standards Board Statement No. 121
(FAS 121), the estimated cash flows were discounted at the effective rate of the
non-recourse debt related to the lease and the assets were written down to the
present value of those cash flows.
Assets and liabilities related to the lease transaction were as follows as of
December 31, 1995:
Assets at cost $3,365,947
Accumulated depreciation (1,287,475)
----------------
Book value of lease assets 2,078,472
Deposits from lessee (124,235)
Non-recourse debt (1,733,741)
----------------
Net assets included in the Partnership's balance sheet as of
December 31, 1995 before provision for impairment 220,496
Reserve for impairment (778,169)
----------------
Excess of non-recourse debt over net assets ($557,673)
================
On July 19, 1996, the assets subject to the lease were purchased by a third
party. As part of the purchase and transaction restructure, the related
non-recourse debt was extinguished by the lender and the Partnership received a
small amount of cash proceeds. The sale resulted in a gain on the sale of the
assets and a gain on the extinguishment of the related non-recourse debt. The
following summarizes this transaction:
Assets at cost $3,365,947
Accumulated depreciation at June 30, 1996 (1,573,580)
----------------
Book value of lease assets at June 30, 1996 1,792,367
Reserve for impairment (778,169)
----------------
Carrying value at June 30, 1996 1,014,198
Deposits from lessee retained by Partnership (124,235)
----------------
Excess of carrying value over deposits from lessee 889,963
Gross sales proceeds 1,579,200
----------------
Gain on sale of assets $689,237
================
Non-recourse debt $1,733,741
Gross sales proceeds used to extinguish non-recourse debt (1,572,786)
----------------
Extraordinary gain on extinguishment of debt $160,955
================
Gross sales proceeds $1,579,200
Gross sales proceeds used to extinguish non-recourse debt (1,572,786)
----------------
Net cash proceeds to Partnership $6,414
================
Page 12
<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations
Capital Resources and Liquidity
The Partnership currently has available adequate reserves to meet contingencies,
but in the event those reserves were found to be inadequate, the Partnership
would likely be in a position to borrow against its current portfolio to meet
such requirements. The General Partner envisions no such requirements for
operating purposes.
As of September 30, 1996, the Partnership had borrowed $51,503,501. The
remaining unpaid balance as of that date was $43,271,055. Long-term borrowings
are to be non-recourse to the Partnership, that is, the only recourse of the
lender will be to the equipment or corresponding lease acquired or secured with
the loan proceeds. The General Partner expects that aggregate borrowings in the
future will be approximately 40% of aggregate equipment cost. In any event, the
Agreement of Limited Partnership limits such borrowings to 40% of the total cost
of equipment, in aggregate.
The Partnership participates with the General Partner and certain of its
affiliates in a $70,000,000 revolving line of credit with a financial
institution. The line of credit expires on July 18, 1997.
The facility, when used by the Partnership, is collateralized by (i) leases and
equipment owned by the Partnership and financed by the lines and (ii) all other
assets owned by the Partnership except equipment, lease receipts and residual
values specifically pledged to other equipment funding sources.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. As of September 30, 1996, such
commitments for the purchase of additional leased assets totaled $2,000,000.
If inflation in the general economy becomes significant, it may affect the
Partnership inasmuch as the residual (resale) values and rates on re-leases of
the Partnership's leased assets may increase as the costs of similar assets
increase. However, the Partnership's revenues from existing leases would not
increase, as such rates are generally fixed for the terms of the leases without
adjustment for inflation.
If interest rates increase significantly, the lease rates that the Partnership
can obtain on future leases will be expected to increase as the cost of capital
is a significant factor in the pricing of lease financing. Leases already in
place, for the most part, would not be affected by changes in interest rates.
In 1996 and 1995, the Partnership's most significant sources of cash were lease
rents, proceeds from non-recourse debt and borrowings under the line of credit.
Cash flows - 1996 vs. 1995:
In both 1996 and 1995, the Partnership's primary source of operating cash flows
was operating lease rents. Lease rents have increased as a result of asset
acquisitions over the last year.
In 1996 the largest source of cash from investing activities was the proceeds
from sales of lease assets. In 1996, lease rents from direct financing and
leveraged lease transactions also provided a significant amount of cash flows.
In 1996 and 1995, the only financing sources of cash were borrowings, either as
the proceeds of non-recourse debt or as borrowings on the line of credit.
Page 13
<PAGE>
Results of operations - 1996 vs. 1995
Acquisitions of significant amounts of lease assets has continued through the
third quarter of 1996. The acquisitions have resulted in increases in operating
lease revenues (and the related depreciation expense) and direct financing lease
revenues. In 1996, most of the asset acquisitions have been financed with the
proceeds of non-recourse debt and borrowings under the line of credit. This has
resulted in an increase in interest expense from $573,954 in 1995 to $2,912,991
in 1996 for the nine month period and $286,401 in 1995 compared to $988,625 in
1996 for the three month period.
Effective January 1, 1996, the Partnership suspended the recognition of income
under its lease with Barney's, Inc. The non-recourse debt related to this
transaction was also put in a non-accrual status, that is, interest expense was
no longer accrued. In July 1996, the underlying assets were sold to an unrelated
third party and the related debt was extinguished as a part of the transaction.
The Partnership recorded a gain on the sale of the assets of $689,235. The sale
resulted in the debt being extinguished for less than its carrying amount,
resulting in an extraordinary gain of $160,955.
The non-accrual of lease revenues on the Barney's lease reduced operating lease
revenues by $529,838 over the nine month period ($176,613 for the three month
period).
Page 14
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Inapplicable.
Item 2. Changes In Securities.
Inapplicable.
Item 3. Defaults Upon Senior Securities.
Inapplicable.
Item 4. Submission Of Matters To A Vote Of Security Holders.
Inapplicable.
Item 5. Other Information.
Inapplicable.
Item 6. Exhibits And Reports On Form 8-K.
(a) Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, September 30, 1996 and
December 31, 1995.
Income statements for the nine and three
month periods ended September 30, 1996
and 1995.
Statement of changes in partners' capital
for the nine months ended September 30,
1996.
Statements of cash flows for the nine and
three month periods ended September 30,
1996 and 1995.
Notes to the Financial Statements
2. Financial Statement Schedules
All other schedules for which provision is
made in the applicable accounting
regulations of the Securities and Exchange
Commission are not required under the
related instructions or are inapplicable,
and therefore have been omitted.
(b) Report on Form 8-K
None
Page 15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date:
November 11, 1996
ATEL CASH DISTRIBUTION FUND V, L.P.
(Registrant)
By: ATEL Financial Corporation
General Partner of Registrant
By: /s/ A. J. BATT
---------------------------------
A. J. Batt
President and Chief Executive Officer
of General Partner
By: /s/ DEAN L. CASH
---------------------------------
Dean L. Cash
Executive Vice President
of General Partner
By: /s/ F. RANDALL BIGONY
-----------------------------------
F. Randall Bigony
Principal financial officer of
registrant
By: /s/ DONALD E. CARPENTER
----------------------------------
Donald E. Carpenter
Principal accounting officer of
registrant
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<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 705946
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0
0
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