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, 1997
|_| 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>
Part I. FINANCIAL INFORMATION
Item 1: Financial Statements.
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
BALANCE SHEETS
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
(Unaudited)
ASSETS
1997 1996
---- ----
Cash $500,020 $1,917,349
Accounts receivable 2,238,644 2,889,713
Other assets - 10,000
Investments in leases 111,251,756 125,729,656
----------------- -----------------
$113,990,420 $130,546,718
================= =================
LIABILITIES AND PARTNERS' CAPITAL
Non-recourse debt $40,800,146 $41,496,203
Line of credit 2,000,000 9,921,190
Accounts payable
Equipment purchases 311,100 464,604
General Partner 317,036 295,705
Other 254,530 284,929
Accrued interest 220,826 232,808
Unearned lease income 843,502 1,305,596
----------------- -----------------
Total liabilities 44,747,140 54,001,035
Partners' capital:
General Partner 81,141 51,087
Limited Partners 69,162,139 76,494,596
----------------- -----------------
Total partners' capital 69,243,280 76,545,683
----------------- -----------------
Total liabilities and partners' capital $113,990,420 $130,546,718
================= =================
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
INCOME STATEMENTS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1997 1996 1997 1996
---- ---- ---- ----
Revenues:
Leasing activities:
<S> <C> <C> <C> <C>
Operating leases $15,284,337 $15,657,716 $5,166,745 $5,295,942
Direct financing leases 2,129,846 2,307,810 684,302 750,371
Leveraged leases 121,120 133,133 40,373 45,256
Gain on sales of assets 261,179 944,993 74,077 807,692
Interest income 27,657 33,621 6,116 11,666
Other 11,138 40,745 7,235 24,715
---------------- ----------------- ----------------- -----------------
17,835,277 19,118,018 5,978,848 6,935,642
Expenses:
Depreciation and amortization 9,978,846 11,749,993 3,135,265 3,806,160
Management fees 1,157,564 1,278,434 335,806 415,742
Interest 2,747,570 2,912,991 862,310 988,625
Administrative cost reimbursements 304,646 324,503 133,031 123,390
Provision for losses 118,564 192,824 - 71,000
Other 522,721 393,861 175,474 184,156
---------------- ----------------- ----------------- -----------------
14,829,911 16,852,606 4,641,886 5,589,073
---------------- ----------------- ----------------- -----------------
Income before extraordinary item 3,005,366 2,265,412 1,336,962 1,346,569
Extraordinary gain on early extinguishment of debt - 160,955 - 160,955
---------------- ----------------- ----------------- -----------------
Net income $3,005,366 $2,426,367 $1,336,962 $1,507,524
================ ================= ================= =================
Net income:
General Partner $30,054 $24,264 $13,370 $15,075
Limited Partners 2,975,312 2,402,103 1,323,592 1,492,449
---------------- ----------------- ----------------- -----------------
$3,005,366 $2,426,367 $1,336,962 $1,507,524
================ ================= ================= =================
Income before extraordinary item per limited
partnership unit $0.24 $0.18 $0.11 $0.11
Extraordinary gain on early extinguishment of
debt per limited partnership unit - 0.01 - 0.01
---------------- ----------------- ----------------- -----------------
Net income per Limited Partnership unit $0.24 $0.19 $0.11 $0.12
================ ================= ================= =================
Weighted average number of units outstanding 12,497,000 12,497,000 12,497,000 12,497,517
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
NINE MONTH PERIOD ENDED
SEPTEMBER 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners General
Units Amount Partner Total
<S> <C> <C> <C> <C>
Balance December 31, 1996 12,497,000 $76,494,596 $51,087 $76,545,683
Distributions to limited partners (10,307,769) - (10,307,769)
Net income 2,975,312 30,054 3,005,366
---------------- ----------------- ----------------- -----------------
Balance September 30, 1997 12,497,000 $69,162,139 $81,141 $69,243,280
================ ================= ================= =================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
STATEMENT OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1997 1996 1997 1996
---- ---- ---- ----
Operating activities:
<S> <C> <C> <C> <C>
Net income $3,005,366 $2,426,367 $1,336,962 $1,507,524
Adjustments to reconcile net income to net cash
provided by operations
Depreciation and amortization 9,978,846 11,749,993 3,135,265 3,806,160
Leveraged lease income - -
Gain on sale of assets (261,179) (944,993) (74,077) (807,692)
Provision for losses 118,564 192,824 - 71,000
Extraordinary gain on early extinguishment of
non-recourse debt - (160,955) - (160,955)
Changes in operating assets and liabilities:
Accounts receivable 651,069 112,243 (389,982) 1,067,855
Other assets 10,000 - - -
Accounts payable, General Partner 21,331 (610,690) 91,042 101,886
Accounts payable, other (30,399) 279,605 (36,415) 466,557
Unearned lease income (462,094) (152,998) (82,396) (17,380)
Accrued interest (11,982) (132,991) (5,546) (28,136)
Deposits due to lessees - (627,508) - (124,235)
---------------- ----------------- ----------------- -----------------
Net cash provided by operating activities 13,019,522 12,130,897 3,974,853 5,882,584
---------------- ----------------- ----------------- -----------------
Investing activities:
Purchase of equipment on operating leases (153,504) (16,685,908) - 397,754
Purchase of equipment on direct financing leases (33,022) (3,608,007) - (2,267,692)
Reductions in investment in direct financing leases 2,914,966 2,809,303 802,218 271,884
Reductions in investment in leveraged leases 236,190 265,995 115,622 124,678
Payments of initial direct lease costs to General
Partner - (147,072) - (9,051)
Proceeds from sales of assets 1,523,535 5,849,124 427,991 5,601,636
---------------- ----------------- ----------------- -----------------
Net cash (used in) provided by investing
activities 4,488,165 (11,516,565) 1,345,831 4,119,209
---------------- ----------------- ----------------- -----------------
</TABLE>
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
STATEMENT OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Financing activities:
Proceeds of non-recourse debt 5,092,723 30,773,576 - 6,459,485
Borrowings under line of credit - 19,596,000 - 1,500,000
Repayments of non-recourse debt (5,788,780) (6,470,864) (2,228,261) (3,230,704)
Repayment of line of credit (7,921,190) (35,966,233) (1,200,000) (11,265,026)
Limited partnership units repurchased - (5,512) - (4,293)
Distributions to limited partners (10,307,769) (10,236,671) (3,436,773) (3,436,692)
Net cash (used in) provided by financing
activities (18,925,016) (2,309,704) (6,865,034) (9,977,230)
---------------- ----------------- ----------------- -----------------
Net (decrease) increase in cash and cash
equivalents (1,417,329) (1,695,372) (1,544,350) 24,563
Cash and cash equivalents at beginning
of period 1,917,349 2,401,318 2,044,370 681,383
---------------- ----------------- ----------------- -----------------
Cash and cash equivalents at end of period $500,020 $705,946 $500,020 $705,946
================ ================= ================= =================
Supplemental disclosure of cash flow information:
Cash paid for interest during period $2,759,552 $3,045,982 $867,856 $1,016,761
================ ================= ================= =================
Supplemental disclosure of non-cash transactions:
Leveraged lease assets reclassified to operating
lease assets $902,362
================
Operating lease assets reclassified to direct
financing lease assets $2,025,000
=================
Operating lease assets reclassified to assets held
for sale or lease $76,858
================
Gain on extinguishment of non-recourse debt $160,955 $160,955
================= =================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(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,
1996 Additions of Leases Dispositions 1997
---- --------- --------- - ------------- ----
<S> <C> <C> <C> <C> <C>
Net investment in operating leases $87,312,105 ($9,287,536) ($76,569) $77,948,000
Net investment in direct financing
leases 30,648,362 $33,022 (2,914,966) - 27,766,418
Net investment in leveraged leases 4,312,287 - (236,190) (1,107,375) 2,968,722
Residual value interests 835,760 - - - 835,760
Equipment held for sale or lease 154,758 - (3,209) (78,412) 73,137
Initial direct costs, net of
accumulated amortization of
$2,747,408 in 1997 and
$2,029,792 in 1996. 2,964,682 - (688,101) - 2,276,581
Reserve for losses (498,298) (118,564) - - (616,862)
----------------- ---------------- ----------------- ----------------- -----------------
$125,729,656 ($85,542) ($13,130,002) ($1,262,356) $111,251,756
================= ================ ================= ================= =================
</TABLE>
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(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, 1996,
acquisitions and dispositions during the quarters ended March 31, June 30 and
September 30, 1997 and as of September 30, 1997.
<TABLE>
<CAPTION>
December 31, Acquisitions, Dispositions & Reclassifications September 30,
1996 1st Quarter 2nd Quarter 3rd Quarter 1997
---- ----------- ----------- ----------- ----
<S> <C> <C> <C> <C> <C>
Transportation $41,681,813 $695,137 ($796,499) $41,580,451
Construction 24,075,113 - - ($61,544) 24,013,569
Materials handling 18,057,102 (157,462) - (13,223) 17,886,417
Mining 15,164,692 - - - 15,164,692
Furniture and fixtures 7,109,796 - - - 7,109,796
Manufacturing 3,475,585 - - - 3,475,585
Office automation 2,378,155 (3,736) - - 2,374,419
Printing 2,325,000 - - - 2,325,000
Food processing 1,826,162 - - - 1,826,162
Other 283,412 - (283,412) - -
----------------- ---------------- ----------------- ----------------- -----------------
116,376,830 533,939 (1,079,911) (74,767) 115,756,091
Less accumulated depreciation (29,064,725) (3,106,208) (2,714,305) (2,922,853) (37,808,091)
----------------- ---------------- ----------------- ----------------- -----------------
$87,312,105 ($2,572,269) ($3,794,216) ($2,997,620) $77,948,000
================= ================ ================= ================= =================
</TABLE>
All of the property on operating leases was acquired during 1993, 1994, 1995,
1996 and 1997.
At September 30, 1997, 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, 1997 $3,799,715 $2,965,678 $6,765,393
Year ending December 31, 1998 9,348,753 5,524,309 14,873,062
1999 8,863,376 4,978,411 13,841,787
2000 5,786,660 3,890,907 9,677,567
2001 3,940,291 3,017,642 6,957,933
Thereafter 9,061,351 9,283,834 18,345,185
---------------- ----------------- -----------------
$40,800,146 $29,660,781 $70,460,927
================ ================= =================
</TABLE>
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(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, 1997.
Total minimum lease payments receivable $29,660,781
Estimated residual values of leased equipment
(unguaranteed) 8,939,339
-----------------
Investment in direct financing leases 38,600,120
Less unearned income (10,833,702)
-----------------
Net investment in direct financing leases $27,766,418
=================
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, 1997
are as follows:
<TABLE>
<CAPTION>
Principal Interest Total
--------- -------- -----
<S> <C> <C> <C>
Three months ending December 31, 1997 $2,271,810 $798,565 $3,070,375
Year ending December 31, 1998 9,355,769 2,741,237 12,097,006
1999 7,348,292 2,035,620 9,383,912
2000 5,562,189 1,482,702 7,044,891
2001 4,458,364 1,052,839 5,511,203
Thereafter 11,803,722 4,709,263 16,512,985
---------------- ----------------- -----------------
$40,800,146 $12,820,226 $53,620,372
================ ================= =================
</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:
1997 1996
---- ----
Equipment and incentive management fees $1,157,564 $1,278,434
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) - 832,331
----------------- -----------------
$1,157,564 $2,199,903
================= =================
<PAGE>
ATEL CASH DISTRIBUTION FUND V, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(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 $90,000,000 revolving credit agreement with a group of financial
institutions which expires on October 28, 1998. The agreement includes an
acquisition facility to be used by the Partnership and Affiliates to provide
bridge financing for assets on leases. Draws on the acquisition facility by any
individual borrower are secured only by that borrower's assets, including
equipment and related leases.
At September 30, 1997, the Partnership had $2,000,000 of borrowings under the
line of credit.
The credit agreement includes certain financial covenants applicable to each
borrower. The Partnership was in compliance with its covenants as of September
30, 1997.
<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, 1997, the Partnership had borrowed $56,593,183. The
remaining unpaid balance as of that date was $40,800,146. 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 $90,000,000 revolving line of credit with a financial
institution. The line of credit expires on October 28, 1998.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. As of September 30, 1997, there were no
such commitments.
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 1997, the Partnership's most significant source of cash was lease rents.
Cash flows - 1997 vs. 1996:
In both 1997 and 1996, the Partnership's primary source of operating cash flows
was operating lease rents. Lease rents have decreased by $563,356 (3%) as a
result of asset sales over the last year.
In 1997, the largest source of cash from investing activities was rents from
direct financing leases. 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 1997 and 1996, the only financing sources of cash were borrowings, either as
the proceeds of non-recourse debt (1997 and 1996) or as borrowings on the line
of credit (1996).
<PAGE>
Results of operations - 1997 vs. 1996
Operating leases are the Partnership's primary source of revenues. Such revenues
decreased by $373,379 (2%) compared to 1996. The decrease resulted from asset
sales over the last year. Depreciation expense is directly related to operating
lease assets and has also decreased compared to 1996 as a result of these asset
sales. Management fees are based on the Partnership's revenues and its
distributions to the Limited Partners. As a result of the decrease in lease
revenues, management fees have declined compared to 1996. Debt balances have
been reduced by scheduled debt payments and this has resulted in the decrease of
$165,421 in interest expense compared to 1996.
<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, 1997 and December
31, 1996.
Income statements for the nine and three month
periods ended September 30, 1997 and 1996.
Statement of changes in partners' capital for the
nine months ended September 30, 1997.
Statements of cash flows for the nine and three
month periods ended September 30, 1997 and
1996.
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>
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 12, 1997
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
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> dec-31-1997
<PERIOD-END> sep-30-1997
<CASH> 500,020
<SECURITIES> 0
<RECEIVABLES> 2,238,644
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 113,990,420
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 69,243,280
<TOTAL-LIABILITY-AND-EQUITY> 113,990,420
<SALES> 0
<TOTAL-REVENUES> 17,835,277
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 11,963,777
<LOSS-PROVISION> 118,564
<INTEREST-EXPENSE> 2,747,570
<INCOME-PRETAX> 3,005,366
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,005,366
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,005,366
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
