UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the fiscal quarter ended March 31, 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 33-40093
-----------------------
PLM EQUIPMENT GROWTH & INCOME FUND VII
(Exact name of registrant as specified in its
charter)
California 94-3168838
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Market, Steuart Street Tower
Suite 900, San Francisco, CA 94105-1301
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code (415) 974-1399
-----------------------
Indicate by 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 ______
<PAGE>
PLM GROWTH & INCOME FUND VII
(A Limited Partnership)
BALANCE SHEETS
(in thousands of dollars)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
-----------------------------------
<S> <C> <C>
Equipment held for operating leases $ 59,610 $ 58,333
Less accumulated depreciation (14,710) (12,796)
-----------------------------------
44,900 45,537
Equipment held for sale -- 156
-----------------------------------
Net equipment 44,900 45,693
Cash and cash equivalents 8,226 11,965
Restricted cash 396 401
Investments in unconsolidated special purpose entities 40,914 38,689
Accounts receivable, net of allowance for
doubtful accounts of $316 in 1996 and $238 in 1995 790 872
Prepaid expenses 25 40
Deferred charges, net of accumulated amortization
of $322 in 1996 and $268 in 1995 518 534
-----------------------------------
Total assets $ 95,769 $ 98,194
===================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 587 $ 270
Due to affiliates 425 513
Note payable 23,000 23,000
Prepaid deposits and reserve for repairs 1,048 1,120
-----------------------------------
Total liabilities 25,060 24,903
Partners' capital:
Limited Partners (5,370,297 Depositary Units at March 31,
1996 and at December 31, 1995) 70,709 73,291
General Partner -- --
-----------------------------------
Total partners' capital 70,709 73,291
-----------------------------------
Total liabilities and partners' capital $ 95,769 $ 98,194
===================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(in thousands of dollars except per unit amounts)
<TABLE>
<CAPTION>
For the three months
ended March 31,
1996 1995
--------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 3,044 $ 3,557
Interest and other income 189 87
Gain (loss) on disposition of equipment 16 6
--------------------------------
Total revenues 3,249 3,650
Expenses:
Depreciation and amortization 2,016 2,850
Management fees to affiliate 158 197
Repairs and maintenance 238 305
Insurance expense -- 58
Insurance expense to affiliate 10 23
Interest expense 423 --
Marine equipment operating expenses 18 129
General and administrative expenses
to affiliates 140 170
Other general and administrative expenses 219 104
Provision for bad debts 77 15
--------------------------------
Total expenses 3,299 3,851
--------------------------------
Equity in net income of unconsolidated
special purpose entities 13 --
--------------------------------
Net loss $ (37) $ (201)
================================
Partners' share of net income (loss):
Limited Partners $ (164) $ (301)
General Partner 127 100
--------------------------------
Total $ (37) $ (201)
================================
Net loss per Depositary Unit
(5,370,297 Units in 1996 and 5,019,254
in 1995) $ (0.03) $ N/A
================================
Cash distributions $ 2,545 $ 2,135
================================
Cash distributions per Depositary Unit $ 0.45 $ N/A
================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For
the period from December 31, 1994 to March 31, 1996
(in thousands)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
------------------------------------------------------------------
<S> <C> <C> <C>
Partners' capital at December 31, 1994 $ 66,996 $ -- $ 66,996
Partners' capital contributions 18,873 -- 18,873
Underwriting commissions to affiliates (1,320) -- (1,320)
Syndication costs to affiliates (440) -- (440)
------------------------------------------------------------------
Partners' capital contributions, net 17,113 -- 17,113
Net income (loss) (1,661) 470 (1,191)
Cash distributions (9,157) (470) (9,627)
------------------------------------------------------------------
Partners' capital at December 31, 1995 73,291 -- 73,291
Net income (loss) (164) 127 (37)
Cash distributions (2,418) (127) (2,545)
------------------------------------------------------------------
Partners' capital at March 31, 1996 $ 70,709 $ -- $ 70,709
==================================================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
For the three months
ended March 31,
1996 1995
------------------------------------
<S> <C> <C>
Operating activities:
Net loss $ (37) $ (201)
Adjustments to reconcile net loss to net cash
provided by operating activities
Gain on disposition of equipment (16) (6)
Depreciation and amortization 2,016 2,850
Cash distributions from unconsolidated special purpose
entities in excess of income 3,385 --
Changes in operating assets and liabilities:
Increase in restricted cash 5 --
Accounts receivable, net (32) (38)
Prepaid expenses 15 15
Accounts payable and accrued expenses 317 50
Due to affiliates (88) (15)
Prepaid deposits and reserve for repairs (72) 98
------------------------------------
Cash provided by operating activities 5,493 2,753
------------------------------------
Investing activities:
Payments for purchase of equipment and capitalized repairs (1,367) (39)
Investment in equipment purchased and placed in
unconsolidated special purpose entities (5,610) --
Payments of acquisition-related fees to affiliate (60) (358)
Payments of lease negotiation fees to affiliate (13) (80)
Proceeds from disposition of equipment 388 78
------------------------------------
Cash used in investing activities (6,662) (399)
------------------------------------
Financing activities:
Partner's capital contributions, net of syndication and
underwriting costs -- 10,483
Decrease in due to affiliates relating to syndication activities -- (110)
Cash distributions paid to affiliate (127) (100)
Cash distributions paid to Limited Partners (2,418) (2,035)
Payments of debt issuance costs (25) --
Decrease in subscriptions in escrow, net -- (393)
Decrease in restricted cash -- 477
------------------------------------
Cash (used in) provided by financing activities (2,570) 8,322
------------------------------------
Net (decrease) increase in cash and cash equivalents (3,739) 10,676
Cash and cash equivalents at beginning of period 11,965 200
------------------------------------
Cash and cash equivalents at end of period $ 8,226 $ 10,876
====================================
Supplemental information:
Interest paid $ 33 $ --
====================================
Supplemental disclosure of noncash investing and financing activities:
Sales proceeds included in accounts receivable $ 98 $ --
====================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc. ("FSI"), the
General Partner, the accompanying unaudited financial statements contain all
adjustments necessary, consisting primarily of normal recurring accruals, to
present fairly the Partnership's financial position as of March 31, 1996, the
statements of operations and the statements of cash flows for the three months
ended March 31, 1996 and 1995, and the statements of changes in partners'
capital for the period from December 31, 1994 to March 31, 1996. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted from the accompanying financial statements. For further
information, reference should be made to the financial statements and notes
thereto included in the Partnership's Annual Report on Form 10-K for the year
ended December 31, 1995, on file at the Securities and Exchange Commission.
2. Cash Distributions
Cash distributions are recorded when paid and totaled $2.5 million and $2.1
million for the three months ended March 31, 1996 and 1995, respectively. Cash
distributions to investors in excess of net income are considered to represent a
return of capital using the Generally Accepted Accounting Principles (GAAP)
basis. All cash distributions to the Limited Partners for the three months ended
March 31, 1996 and 1995, were deemed to be a return of capital. Cash
distributions related to first quarter results of $1.3 million were paid or are
payable during April and May 1996, depending on whether the individual unit
holder elected to receive a monthly or quarterly distribution check.
3. Investments in Unconsolidated Special Purpose Entities
During the second half of 1995, the Partnership began to increase the level of
its participation in the ownership of large-ticket transportation assets to be
owned and operated jointly with affiliated programs. This trend has continued in
the first quarter of 1996.
Prior to 1996, the Partnership accounted for operating activities associated
with joint ownership of rental equipment as undivided interests, including its
proportionate share of each asset with similar wholly-owned assets in its
financial statements. Under generally accepted accounting principles, the
effects of such activities, if material, should be reported using the equity
method of accounting. Therefore, effective January 1, 1996, the Partnership
adopted the equity method to account for its investment in such jointly-held
assets.
The principle differences between the previous accounting method and the equity
method relate to the presentation of activities relating to these assets in the
statement of operations. Whereas, under equity accounting the Partnership's
proportionate share is presented as a single net amount, "equity in net income
(loss) of unconsolidated special purpose entities," under the previous method,
the Partnership's statement of operations reflected its proportionate share of
each individual item of revenue and expense. Accordingly, the effect of adopting
the equity method of accounting has no cumulative effect on previously reported
partner's capital or on the Partnership's net income (loss) for the period of
adoption. Because the effects on previously issued financial statements of
applying the equity method of accounting to investments in jointly-owned assets
are not considered to be material to such financial statements taken as a whole,
previously issued financial statements have not been restated. However, certain
items have been reclassified in the previously issued balance sheet to conform
to the current period presentation.
During the three months ended March 31, 1996, the Partnership purchased a
partial beneficial interest in a trust containing five commercial aircraft for
$5.6 million and incurred acquisition and lease negotiation fees of $0.3 million
to PLM Transportation Equipment Corporation, an affiliate of the General
Partner.
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
3. Investments in Unconsolidated Special Purpose Entities (continued)
The net investment in unconsolidated special purpose entities includes the
following jointly owned equipment (and related assets and liabilities) (in
thousands):
<TABLE>
<CAPTION>
March 31, December 31,
% Ownership Equipment 1996 1995
- - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
80% Bulk carrier marine vessel $ 9,142 $ 8,903
44% Bulk carrier marine vessel 3,719 3,836
24% 767-200ER Commercial aircraft 6,700 7,001
33% Two trusts that consist of three commercial aircraft, two aircraft
engines, and portfolio of aircraft rotables 8,226 10,664
29% Trust that consists of seven commercial aircraft 7,666 8,285
20% Trust that consists of five commercial aircraft 5,461 --
----------------------------------
Investments in unconsolidated special purpose entities $ 40,914 $ 38,689
==================================
</TABLE>
4. Equipment
Owned equipment held for operating leases is stated at cost. Equipment held
for sale is stated at the lower of the equipment's depreciated cost or net
realizable value and is subject to a pending contract for sale. The components
of equipment are as follows (in thousands):
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
-----------------------------------
<S> <C> <C>
Aircraft $ 10,450 $ 10,450
Marine vessels 22,211 22,211
Trailers 12,744 11,343
Rail equipment 9,487 9,479
Modular buildings 4,718 4,850
-----------------------------------
59,610 58,333
Less accumulated depreciation (14,710) (12,796)
-----------------------------------
44,900 45,537
Equipment held for sale -- 156
-----------------------------------
Net equipment $ 44,900 $ 45,693
===================================
</TABLE>
Revenues are earned by placing the equipment in service under operating leases.
As of March 31, 1996, all equipment in the Partnership's portfolio was on lease
or operating in PLM-affiliated short-term trailer rental yards except for 68
trailers. The net book value of the equipment off-lease was $1.4 million. As of
December 31, 1995, all equipment in the Partnership's portfolio was on lease or
operating in PLM-affiliated short-term trailer rental yards.
During the three months ended March 31, 1996, six modular buildings and one
trailer with an aggregate net book value of $102,000 were sold for $124,000. The
Partnership also sold 58 trailers, which were held for sale as of December 31,
1995, with a net book value of $156,000 at the date of sale for proceeds of
$150,000
During the three months ended March 31, 1995, the Partnership sold four modular
buildings with a net book value of $72,000 for proceeds of $78,000.
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
5. Debt
The General Partner has entered into a joint $25 million credit facility (the
"Committed Bridge Facility") on behalf of the Partnership, PLM Equipment Growth
Fund II, PLM Equipment Growth Fund III, PLM Equipment Growth Fund IV, PLM
Equipment Growth Fund V, PLM Equipment Growth & Income Fund VI and Professional
Lease Management Income Fund I ("Fund I"), all affiliated investment programs,
and TEC Acquisub, Inc. ("TECAI"), an indirect wholly-owned subsidiary of the
General Partner, which may be used to provide interim financing of up to (i) 70%
of the aggregate book value or 50% of the aggregate net fair market value of
eligible equipment owned by the Partnership or Fund I, plus (ii) 50% of
unrestricted cash held by the borrower. The Committed Bridge Facility became
available on December 20, 1993, and was amended and restated on September 27,
1995, to expire on September 30, 1996. The Committed Bridge Facility also
provides for a $5 million Letter of Credit Facility for the eligible borrowers.
Outstanding borrowings by Fund I, TECAI or PLM Equipment Growth Funds II through
VII reduce the amount available to each other under the Committed Bridge
Facility. Individual borrowings may be outstanding for no more than 179 days,
with all advances due no later than September 30, 1996. The Committed Bridge
Facility prohibits the Partnership from incurring any additional indebtedness.
Interest accrues at either the prime rate or adjusted LIBOR plus 2.5% at the
borrowers option and is set at the time of an advance of funds. Borrowings by
the Partnership are guaranteed by the General Partner. As of March 31, 1996, the
PLM Equipment Growth Fund VI had $11,220,000 in outstanding borrowings under the
Committed Bridge Facility, PLM Equipment Growth Fund V had $5,610,000 and TECAI
had $7,706,000 in outstanding borrowings and neither the Partnership nor any of
the other programs had any outstanding borrowings.
(this space intentionally left blank)
<PAGE>
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(I) RESULTS OF OPERATIONS
Comparison of the Partnership's Operating Results for the Three Months Ended
March 31, 1996 and 1995
(A) Revenues
PLM Equipment Growth & Income Fund VII was in the equity raising stage during
the first four months of 1995. As of March 31, 1996, the Partnership had
purchased and placed into service $115 million of owned equipment and jointly
owned assets reported as investments in unconsolidated special purpose entities
compared to $79 million at March 31, 1995. Revenues of $3.2 million were
generated for the three months ending March 31, 1996, compared to $3.7 million
for the same period in 1995. The primary reason for the decrease is due to lower
lease revenues.
Lease revenues decreased to $3.04 million for the three months ended March 31,
1996, when compared to the same period in 1995. The following table list the
changes by equipment type (in thousands) :
For the three months
ended March 31,
1996 1995
---------------------------------
Aircraft $ 564 $ 295
Marine vessels 964 1,749
Trailers 552 687
Railcars 626 608
Modular buildings 338 218
---------------------------------
$ 3,044 $ 3,557
=================================
Although net income was not affected by the change in accounting for investments
in unconsolidated special purpose entities (see note 3 to financial statements),
lease revenues attributable to unconsolidated special purpose entities totaled
$3.0 million in the first quarter of 1996, which included $1.8 million and $1.2
million for aircraft and marine vessels revenue, respectively, which represented
revenues for jointly-owned assets (refer to the "Equity in net income of
unconsolidated special purpose entities" section below). The remaining changes
in 1996 lease revenues from owned equipment are explained below:
a) an increase of $0.3 million in aircraft revenues is due primarily to the
purchase and lease of 2 commercial aircraft and 4 aircraft engines during the
later part of 1995. This equipment was on lease the full first quarter of 1996;
b) the decrease $0.1 million in trailer revenues is due primarily to the
sale of equipment which was on lease during the same period of 1995;
c) the increase of $0.1 million in modular building revenues is due to an
increase in the utilization of this equipment when compared to the same period
of 1995.
Interest income and other increased $$0.1 million during the three months ended
March 31, 1996 when compared to the same period of 1995 due to higher cash
balances available for investment.
(B) Expenses
Total expenses of $3.3 million for the three months ended March 31, 1996
decreased from $3.9 million for the same period of 1995. The decrease in 1996
expenses was attributable to a reduction in depreciation and amortization and
repairs and maintenance expenses offset, in part, by increases in interest and
administrative expenses.
Although net income was not affected by the change in accounting for investments
in unconsolidated special purpose entities, expenses attributable to
unconsolidated special purpose entities totaled $2.9 million in the first
quarter of 1996, which included $1.8 million and $1.1 million for aircraft and
marine vessels expenses, respectively, which represented depreciation and
amortization, management fees, marine operating and administrative and other
expenses for jointly-owned assets (refer to the "Equity in net income of
unconsolidated special purpose entities" section below). The remaining changes
in 1996 expenses are explained below:
a) Depreciation and amortization expense increased $0.2 million during 1996
when compared to 1995, due to the equipment which was purchased throughout 1995,
offset, in part, by the Partnership's use of the double-declining depreciation
method
b) Interest expenses increased $0.4 million during 1996. The increase was
the result of the Partnership's increase in long term debt of $23.0 million when
compared to the same period of 1995.
(C) Equity in net income of unconsolidated special purpose entities
Equity in net income of unconsolidated special purpose entities represents the
net income generated from jointly-owned assets accounted for under the equity
method (see note 3 to financial statements).
At March 31 1996 and 1995, the Partnership's interest in a jointly owned marine
vessel was affected by this change. The revenues generated by this equipment
increased $0.4 million due to the change in the lease of the marine vessel from
bareboat charter to time charter. Marine operating expenses also increased $0.2
million due to the change from bareboat charter in which the lessee pays for
operating expenses, to a time charter in which the Partnership pays for certain
operating expenses.
As of March 31 1996, the Partnership had acquired a partial beneficial interest
in four trusts which is comprised of 15 commercial aircraft, 2 aircraft engines
and a portfolio of rotable components. Revenues earned by these trusts of $1.8
million were offset by depreciation expense of $1.8 million.
(D) Net Loss
The Partnership's net loss of $37,000 for the three months ending March 31,
1996, decreased from a net loss of $201,000 during the same period in 1995. The
Partnership's ability to acquire, operate, or liquidate assets, secure leases,
and re-lease those assets whose leases expire during the duration of the
Partnership is subject to many factors and the Partnership's performance for the
three months ending March 31, 1996, is not necessarily indicative of future
periods. In the three months ending March 31, 1996, the Partnership distributed
$2.4 million to the Limited Partners, or $0.45 per Limited Partnership Unit.
(II) FINANCIAL CONDITION - CAPITAL RESOURCES, LIQUIDITY, AND DISTRIBUTIONS
The General Partner purchased the Partnership's initial equipment portfolio with
capital raised from its initial equity offering and permanent debt financing of
$23 million. No further capital contributions from original partners are
permitted under the terms of the Partnership's Limited Partnership Agreement.
The Partnership relies on operating cash flow to meet its operating obligations,
make cash distributions to partners and increase the Partnership's equipment
portfolio with any remaining available surplus cash. For the three months ended
March 31, 1996, the Partnership generated sufficient operating cash to meet its
operating obligations and pay distributions.
The General Partner has entered into a joint $25 million credit facility (the
"Committed Bridge Facility") on behalf of the Partnership, PLM Equipment Growth
Fund II, PLM Equipment Growth Fund III, PLM Equipment Growth Fund IV, PLM
Equipment Growth Fund V, PLM Equipment Growth & Income Fund VI and Professional
Lease Management Income Fund I ("Fund I"), all affiliated investment programs,
and TEC Acquisub, Inc. ("TECAI"), an indirect wholly-owned subsidiary of the
General Partner, which may be used to provide interim financing of up to (i) 70%
of the aggregate book value or 50% of the aggregate net fair market value of
eligible equipment owned by the Partnership or Fund I, plus (ii) 50% of
unrestricted cash held by the borrower. The Committed Bridge Facility became
available on December 20, 1993, and was amended and restated on September 27,
1995, to expire on September 30, 1996. The Committed Bridge Facility also
provides for a $5 million Letter of Credit Facility for the eligible borrowers.
Outstanding borrowings by Fund I, TECAI or PLM Equipment Growth Funds II through
VII reduce the amount available to each other under the Committed Bridge
Facility. Individual borrowings may be outstanding for no more than 179 days,
with all advances due no later than September 30, 1996. The Committed Bridge
Facility prohibits the Partnership from incurring any additional indebtedness.
Interest accrues at either the prime rate or adjusted LIBOR plus 2.5% at the
borrowers option and is set at the time of an advance of funds. Borrowings by
the Partnership are guaranteed by the General Partner. As of March 31, 1996, the
PLM Equipment Growth Fund VI had $11,220,000 in outstanding borrowings under the
Committed Bridge Facility, PLM Equipment Growth Fund V had $5,610,000 and TECAI
had $7,706,000 in outstanding borrowings and neither the Partnership nor any of
the other programs had any outstanding borrowings. The General Partner is in
negotiation to renew the Committed Bridge Facility and believes it will
successfully negotiate an extension of the Committed Bridge Facility prior to
expiration on terms, at least, as favorable as those in the current Committed
Bridge Facility.
(III) TRENDS
The Partnership's operation of a diversified equipment portfolio in a broad base
of markets is intended to reduce its exposure to volatility in individual
equipment sectors. Throughout 1995 and the first part of 1996, market
conditions, supply and demand equilibrium, and other factors varied in several
markets. In the refrigerated over-the-road trailer markets, oversupply
conditions, industry consolidations, and other factors resulted in falling rates
and lower returns. In the dry over-the-road trailer markets, strong demand and a
backlog of new equipment deliveries produced high utilization and returns. The
marine vessel and rail markets could be generally categorized by increasing
rates as the demand for equipment is increasing faster than new additions net of
retirements. Finally, demand for narrowbody stage II aircraft, such as those
owned by the Partnership, has increased as expected savings from newer
narrowbody aircraft have not materialized and deliveries of the newer aircraft
have slowed down. These trends are expected to continue for the near term. These
different markets have had individual effects on the performance of Partnership
equipment - in some cases resulting in declining performance, and in others, in
improved performance.
The ability of the Partnership to realize acceptable lease rates on its
equipment in the different equipment markets is contingent on many factors, such
as specific market conditions and economic activity, technological obsolescence,
governmental or other regulations, and others. The unpredictability of some of
these factors, or of their occurrence, makes it difficult for the General
Partner to clearly define trends or influences that may impact the performance
of the Partnership's equipment. The General Partner continuously monitors both
the equipment markets and the performance of the Partnership's equipment in
these markets. The General Partner may make an evaluation to reduce the
Partnership's exposure to equipment markets in which it determines that it
cannot operate equipment and achieve acceptable rates of return. Alternatively,
the General Partner may make a determination to enter equipment markets in which
it perceives opportunities to profit from supply-demand instabilities or other
market imperfections.
The Partnership intends to use excess cash flow, if any, after payment of
expenses, loan principal, and cash distributions to acquire additional equipment
during the first seven years of Partnership operations. The General Partner
believes these acquisitions may cause the Partnership to generate additional
earnings and cash flow for the Partnership.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
<PAGE>
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.
PLM EQUIPMENT GROWTH FUND & INCOME FUND VII
By: PLM Financial Services, Inc.
General Partner
Dated: May 14, 1996 By: /S/ David J. Davis
------------------
David J. Davis
Vice President and
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 8,226
<SECURITIES> 0
<RECEIVABLES> 790
<ALLOWANCES> 316
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 59,610
<DEPRECIATION> (14,710)
<TOTAL-ASSETS> 95,769
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 70,709
<TOTAL-LIABILITY-AND-EQUITY> 95,769
<SALES> 0
<TOTAL-REVENUES> 3,249
<CGS> 0
<TOTAL-COSTS> 2,876
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 423
<INCOME-PRETAX> (37)
<INCOME-TAX> 0
<INCOME-CONTINUING> (37)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
