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, 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 33-55796
-----------------------
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 800, 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 EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
BALANCE SHEETS
(in thousands, except unit amounts)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-----------------------------------
<S> <C> <C>
Equipment held for operating leases $ 67,398 $ 67,441
Less accumulated depreciation (23,720 ) (21,494 )
-----------------------------------
Net equipment 43,678 45,947
Cash and cash equivalents 4,382 2,468
Restricted cash 158 158
Investments in unconsolidated special purpose entities 33,434 37,141
Accounts receivable, net of allowance for doubtful accounts
of $522 in 1997 and $330 in 1996 960 1,214
Prepaid expenses and other assets 36 58
Deferred charges, net of accumulated amortization of
$387 in 1997 and $493 in 1996 359 412
-----------------------------------
Total assets $ 83,007 $ 87,398
===================================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 572 $ 296
Due to affiliates 616 605
Lessee deposits and reserve for repairs 1,494 1,360
Short-term note payable -- 2,000
Note payable 23,000 23,000
-----------------------------------
Total liabilities 25,682 27,261
Partners' capital:
Limited partners (5,370,297 depositary units at March 31,
1997 and at December 31, 1996) 57,325 60,137
General Partner -- --
-----------------------------------
Total partners' capital 57,325 60,137
-----------------------------------
Total liabilities and partners' capital $ 83,007 $ 87,398
===================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(in thousands, except per unit amounts)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1997 1996
------------------------------
<S> <C> <C>
Revenues:
Lease revenue $ 3,146 $ 3,044
Interest and other income 49 189
Net gain on disposition of equipment 9 16
------------------------------
Total revenues 3,204 3,249
Expenses:
Depreciation and amortization 2,294 2,016
Management fees to affiliate 176 158
Repairs and maintenance 241 238
Interest expense 437 423
Equipment operating expenses 10 18
Insurance expense 19 10
General and administrative expenses
to affiliates 169 140
Other general and administrative expenses 99 219
Bad debt expense 204 77
------------------------------
------------------------------
Total expenses 3,649 3,299
------------------------------
Equity in net income of unconsolidated
special purpose entities 178 13
------------------------------
Net loss $ (267 ) $ (37 )
==============================
Partners' share of net income (loss):
Limited partners $ (394 ) $ (164 )
General Partner 127 127
------------------------------
Total $ (267 ) $ (37 )
==============================
Net loss per weighted-average depositary unit:
(5,370,297 units at March 31, 1997,
and at March 31, 1996) $ (0.07 ) $ (0.03 )
==============================
Cash distributions $ 2,545 $ 2,545
==============================
Cash distributions per weighted-average depositary unit $ 0.45 $ 0.45
==============================
</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, 1995 to March 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
-------------------------------------------------------
<S> <C> <C> <C>
Partners' capital at December 31, 1995 $ 73,291 $ -- $ 73,291
Net income (loss) (3,485 ) 509 (2,976 )
Cash distributions (9,669 ) (509 ) (10,178 )
-------------------------------------------------------
Partners' capital at December 31, 1996 60,137 -- 60,137
Net income (loss) (394 ) 127 (267 )
Cash distributions (2,418 ) (127 ) (2,545 )
-------------------------------------------------------
Partners' capital at March 31, 1997 $ 57,325 $ -- $ 57,325
=======================================================
</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,
1997 1996
------------------------------
<S> <C> <C>
Operating activities:
Net loss $ (267 ) $ (37 )
Adjustments to reconcile net loss
to net cash provided by operating activities:
Net gain on disposition of equipment (9 ) (16 )
Equity in net income from
unconsolidated special purpose entities (178 ) (13 )
Depreciation and amortization 2,294 2,016
Changes in operating assets and liabilities:
Restricted cash -- 5
Accounts receivable 254 (32 )
Prepaid expenses 22 15
Accounts payable and accrued expenses 276 317
Due to affiliates 11 (88 )
Lessee deposits and reserve for repairs 134 (72 )
-----------------------------
Net cash provided by operating activities 2,537 2,095
-----------------------------
Investing activities:
Payments for purchase of equipment and capitalized repairs (1 ) (1,367 )
Investment in and equipment purchased and placed in
unconsolidated special purpose entities -- (5,610 )
Distributions from unconsolidated special purpose entities 3,885 3,398
Payments of acquisition fees to affiliate -- (60 )
Payments of lease negotiation fees to affiliate -- (13 )
Proceeds from disposition of equipment 38 388
-----------------------------
Net cash provided by (used in) investing activities 3,922 (3,264 )
-----------------------------
Financing activities:
Payments of short-term note payable (2,000 ) --
Cash distributions paid to General Partner (127 ) (127 )
Cash distributions paid to Limited partners (2,418 ) (2,418 )
Payments of debt issuance costs -- (25 )
-----------------------------
Net cash used in financing activities (4.545 ) (2,570 )
-----------------------------
Net increase (decrease) in cash and cash equivalents 1,914 (3,739 )
Cash and cash equivalents at beginning of year 2,468 11,965
=============================
Cash and cash equivalents at end of year $ 4,382 $ 8,226
=============================
Supplemental information:
Interest paid $ 28 $ 33
=============================
Supplemental disclosure of noncash investing and financing activities:
Sales proceeds included in accounts receivable $ 49 $ 98
=============================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc., (FSI or
the General Partner), the accompanying unaudited financial statements contain
all adjustments necessary, consisting primarily of normal recurring accruals, to
present fairly, the financial position of PLM Equipment Growth & Income Fund VII
(the Partnership) as of March 31, 1997 and December 31, 1996, the statements of
operations for the three months ended March 31, 1997 and 1996, the statements of
cash flows for the three months ended March 31, 1997 and 1996, and the
statements of changes in partners' capital for the period December 31, 1995 to
March 31, 1997. 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, 1996, on file at the
Securities and Exchange Commission.
2. Reclassification
Certain amounts in the 1996 financial statements have been reclassified to
conform to the 1997 presentation.
3. Cash Distributions
Cash distributions are recorded when paid and totaled $2.5 million for the three
months ended March 31, 1997. Cash distributions to Limited Partners in excess of
net income are considered to represent a return of capital. All cash
distributions paid to the limited partners for the three months ended March 31,
1997 and 1996, were deemed to be a return of capital. Cash distributions related
to the results from the first quarter of 1997, of $1.2 million, were paid or are
payable during April and May 1997, depending on whether the individual limited
partner elected to receive a monthly or quarterly distribution check.
4. Investments in Unconsolidated Special Purpose Entities
The net investments in unconsolidated special purpose entities (USPEs) include
the following jointly-owned equipment (and related assets and liabilities) (in
thousands):
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
80% interest in an entity owning a bulk carrier marine vessel $ 7,105 $ 7,362
44% interest in an entity owning a bulk carrier marine vessel 2,951 3,142
10% interest in an equity owning a mobile offshore drilling unit 2,031 2,100
24% in a trust owning a 767-200ER commercial aircraft 5,524 5,798
33% interest in two trusts that own three 737-200A commercial aircraft,
two aircraft engines, and a portfolio of aircraft rotables 6,827 9,126
33% interest in a trust that owns six 737-200A commercial aircraft 5,059 5,407
25% interest in a trust that owns four 737-200A commercial aircraft 3,937 4,206
----------- -----------
Net investments $ 33,434 $ 37,141
=========== ===========
</TABLE>
5. General Partner and Transactions with Affiliates
Partnership management fees payable to an affiliate of the General Partner were
$120,000 and $119,000 at March 31, 1997 and December 31, 1996, respectively. The
Partnership's proportional share of USPE affiliate management fees of $62,000
and $55,000 were payable as of March 31, 1997 and December 31, 1996,
respectively. The Partnership's proportional share of USPE affiliated management
fees expense during the three months ended March 31, 1997 and 1996 was $121,000
and $128,000, respectively. The Partnership's proportional share of the USPE
data processing and administrative
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
5. General Partner and Transactions with Affiliates (continued)
expenses to affiliates was $78,000 and $17,000 during the three months ended
March 31, 1997 and1996, respectively. The Partnership's proportional share of
USPE affiliated insurance expense of $58,000 and $53,000 during the three months
ended March 31, 1997 and 1996, respectively, was incurred to Transportation
Equipment Indemnity Company, Ltd. (TEI), which provides marine insurance
coverage for Partnership equipment and other insurance brokerage services. TEI
is an affiliate of the General Partner.
During the three months ended March 31, 1996, the Partnership incurred
lease negotiation and equipment acquisition fees of $73,000 to PLM
Transportation Equipment Corporation, a wholly owned subsidiary of FSI. The
Partnership's proportional share of lease negotiation and equipment acquisition
fees incurred by USPE's to PLM Worldwide Management Services (WMS) during the
three months ended March 31, 1996, was $0.3 million. No similar fees were
incurred during the same period of 1997. WMS is a wholly-owned subsidiary of PLM
International, Inc.
The balance due to affiliates at March 31, 1997 and December 31, 1996
includes $0.1 million due to FSI and its affiliates and $.05 million due to an
affiliated USPE.
6. Equipment
Owned equipment held for operating leases is stated at cost. The components of
equipment are as follows (in thousands):
<TABLE>
<CAPTION>
March 31, December 31,
Equipment held for operating leases 1997 1996
------------------------------------------------------------------------------
<S> <C> <C>
Aircraft $ 15,933 $ 15,933
Marine vessels 22,212 22,212
Trailers 14,503 14,547
Modular buildings 4,696 4,696
Rail equipment 10,054 10,053
----------- ------------
67,398 67,441
Less accumulated depreciation (23,720 ) (21,494 )
----------- ------------
Net equipment $ 43,678 $ 45,947
=========== ============
</TABLE>
As of March 31, 1997, all of the equipment was on lease or operating in
PLM-affiliated short-term trailer rental facilities, except for two commuter
aircraft and four railcars. At December 31, 1996, all of the equipment was on
lease or operating in PLM-affiliated short-term trailer rental facilities,
except for five railcars. The net book value of the equipment off lease was $5.0
million and $0.1 million at March 31, 1997 and December 31, 1996, respectively.
During the three months ended March 31, 1997, the Partnership disposed of
or sold trailers with a net book value of $29,000 for $38,000.
During the three months ended March 31, 1996, the Partnership disposed of
or sold modular buildings and a trailer with an aggregate net book value of
$102,000, and received proceeds of $124,000.
7. Debt
As of March 31, 1997, the Partnership had repaid its $2.0 million borrowing
under the short-term joint $50 million credit facility. Among the eligible
borrowers, PLM Equipment Growth Fund V had $1.1 million and American Finance
Group, Inc. had $22.5 million in outstanding borrowings. Neither the
Partnership,
<PAGE>
PLM EQUIPMENT GROWTH & INCOME FUND VII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
7. Debt (continued)
PLM Equipment Growth Fund IV, PLM Equipment Growth Fund VI, Professional Lease
Management Income Fund I, L.L.C., nor TEC Acquisub, Inc. had any outstanding
borrowings.
8. Contingencies
As more fully described by the Partnership in its Form 10-K for the year ended
December 31, 1996, PLM International, Inc. and various of its affiliates are
named as defendants in a lawsuit filed as a class action on January 22, 1997, in
the Circuit Court of Mobile County, Mobile, Alabama, Case No. CV-97-251. On
February 3, 1997, the state court filed an Order conditionally certifying the
class pursuant to the provisions of Rule 23 of the Alabama Rules of Civil
Procedure (ARCP), as requested by plaintiffs in an ex parte motion filed on
January 22, 1997. Defendants were not given notice of the motion, nor were they
given an opportunity to be heard regarding the issue of conditional class
certification. The Order specifies that the class shall consist of (with certain
narrow exceptions) all purchasers of limited partnership units in the
Partnership, PLM Equipment Growth Fund IV, PLM Equipment Growth Fund V, and PLM
Equipment Growth Fund VI. In issuing the Order, the court emphasized that the
certification is conditional in accordance with Rule 23(d) of the ARCP, and that
the plaintiffs will bear the burden of proving each requisite element of Rule 23
at the time of the evidentiary hearing on the issue of class certification. To
date, no such hearing date has been set. The defendants filed a Notice of
Removal of the lawsuit from the state court to the United States District Court
for the Southern District of Alabama, Southern Division (Civil Action No.
97-0177-BH-C) on March 6, 1997, arguing that the parties are fully diverse for
the purposes of diversity jurisdiction pursuant to 28 U.S.C. Section 1441. The
plaintiffs filed a motion to remand the class action to the state court, and
defendants have responded to this motion. Defendants do not need to respond to
the complaint until after the federal court decides the motion to remand. PLM
International, Inc. believes the allegations to be completely without merit and
intends to defend this matter vigorously.
(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, 1997 and 1996
(A) Owned Equipment Operations
Lease revenues less direct expenses (defined as repairs and maintenance,
equipment operation, and asset-specific insurance expenses) on owned equipment
increased during the first quarter of 1997 when compared to the same quarter of
1996. The following table presents revenues less direct expenses by owned
equipment type (in thousands):
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1997 1996
----------------------------
<S> <C> <C>
Aircraft $ 501 $ 554
Marine vessels 899 901
Trailers 722 501
Rail equipment 610 504
Modular buildings 152 326
</TABLE>
Aircraft: Aircraft lease revenues and direct expenses were $0.5 million and
$5,000, respectively, for the three months ended March 31, 1997, compared to
$0.6 million and $10,000, respectively during the same period of 1996. The
decrease in aircraft contribution was due to the off-lease status of two
commuter aircraft that were on lease during the same period of 1996, which was
offset, in part by the purchase of a commercial aircraft during the third
quarter of 1996.
Marine vessels: Marine vessel lease revenues and direct expenses were $1.0
million and $0.1 million, respectively, for the three months ended March 31,
1997 and 1996. The small decrease in marine vessel contribution was due to one
additional day of lease revenues earned during 1996.
Trailers: Trailer lease revenues and direct expenses were $0.8 million and $0.1
million, respectively, for the three months ended March 31, 1997, compared to
$0.6 million and $0.1 million, respectively, during the same period of 1996. The
increase in trailer contribution was due to the purchase of additional equipment
during 1996.
Rail equipment: Rail equipment lease revenues and direct expenses were $0.7
million and $0.1 million, respectively, for the three months ended March 31,
1997, compared to $0.6 million and $0.1 million, respectively, during the same
period of 1996. The increase in railcar contribution was due to the purchase of
additional equipment during 1996.
Modular buildings: Modular building lease revenues and direct expenses were $0.2
million and $1,000, respectively, for the three months ended March 31, 1997,
compared to $0.3 million and $12,000, respectively, during the same quarter of
1996. The primary reason for the decrease in lease revenues is due to a lower
net lease rate earned on the leased equipment when compared to the same period
of 1996.
(B) Indirect Expenses Related to Owned Equipment Operations
Total indirect expenses of $3.4 million for the quarter ended March 31, 1997
increased from $3.0 million for the same period in 1996. The significant
variances are explained as follows:
(a) A $0.3 million increase in depreciation and amortization expenses from
1996 levels reflecting the purchase of a commercial aircraft, trailers and
railcars during 1996, which was offset in part, by the double declining-balance
method of depreciation.
(b) A $0.1 million decrease in administrative expenses was due to costs
associated with the transportation and inspections of certain equipment during
1996 which was not required during 1997.
(c) A $0.1 million increase in the allowance for bad debts was due to an
increase in unpaid invoices over 90 days.
(C) Net Gain on Disposition of Owned Equipment
The net gain on disposition of equipment for the first quarter of 1997 totaled
$9,000 which resulted from the sale of trailers with an aggregate net book value
of $29,000, for $38,000. For the first quarter of 1996, the $16,000 net gain on
disposition of equipment resulted from the sale or disposal of modular buildings
and trailers, with an aggregate net book value of $258,000, for $274,000.
(D) Interest and Other Income
Interest and other income decreased $141,000 during the first quarter of 1997,
due primarily to lower cash balances available for investment throughout most of
the quarter when compared to the same period of 1996.
(E) Equity in Net Income (Loss) of Unconsolidated Special Purpose Entities
Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity method is shown in the following table by equipment type
(in thousands):
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1997 1996
----------------------------
<S> <C> <C>
Aircraft $ 435 $ (109 )
Marine vessels (253 ) 122
Mobile offshore drilling unit (4 ) --
</TABLE>
Aircraft: During the first quarter of 1997, revenues of $2.0 million were offset
by depreciation and administrative expenses of $1.6 million. During the same
period of 1996, lease revenues of $1.8 million were offset by depreciation and
administrative expenses of $1.9 million. Revenues increased during 1997 by $0.2
million because the interest in a trust owning aircraft was purchased late
during the first quarter of 1996. This equipment was on lease for the full
quarter of 1997 compared to only part of the first quarter of 1996. The decline
in expenses of $0.1 million is due to the double declining balance method of
depreciation.
Marine vessels: During the first quarter of 1997, revenues of $0.8 million were
offset by depreciation and administrative expenses of $1.1 million. During the
same period of 1996, revenues of $1.2 million were offset by depreciation and
administrative expenses of $1.1 million. The primary reason revenues decreased
was due to lower day rates earned while on lease.
Mobile offshore drilling unit: As of March 31, 1997, the Partnership owned an
interest in a mobile offshore drilling unit (rig) which was purchased during the
fourth quarter of 1996. Revenues of $90,000 were offset by depreciation and
administrative expenses of $94,000.
(F) Net Loss
As a result of the foregoing, the Partnership's net loss for the period ended
March 31, 1997 was $267,000, compared to a net loss of $37,000 during the same
period in 1996. The Partnership's ability to operate and 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
in the first quarter of 1997 is not necessarily indicative of future periods. In
the first quarter of 1997, the Partnership distributed $2.4 million to the
limited partners, or $0.45 per weighted-average depositary unit.
(II) FINANCIAL CONDITION - CAPITAL RESOURCES, LIQUIDITY, AND DISTRIBUTIONS
For the three months ended March 31, 1997, the Partnership generated sufficient
operating cash (net cash provided by operating activities, plus distributions
from unconsolidated special purpose entities) to meet its operating obligations
and maintain the current level of distributions (total for three months ended
March 31, 1997 of approximately $2.5 million) to the partners. During the three
months ended March 31, 1997, the General Partner sold equipment for $0.2
million.
The General Partner had entered into a short-term joint $50 million credit
facility. As of May 13, 1997, the Partnership did not have any borrowings with
the credit facility, having repaid its $2.0 million borrowing during January
1997; PLM Equipment Growth Fund V had $1.1 million and American Finance Group,
Inc. had $22.5 million in outstanding borrowings. Neither PLM Equipment Growth
Fund IV, PLM Equipment Growth Fund VI, Professional Lease Management Income Fund
I, L.L.C., nor TEC Acquisub, Inc. had any outstanding borrowings.
(III) Outlook for the Future
Several factors may affect the Partnership's operating performance in 1997 and
beyond, including changes in the markets for the Partnership's equipment and
changes in the regulatory environment in which that equipment operates.
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.
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,
and governmental or other regulations. 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 that 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 & INCOME FUND VII
By: PLM Financial Services, Inc.
General Partner
Date: May 13, 1997 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-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 4,382
<SECURITIES> 0
<RECEIVABLES> 960
<ALLOWANCES> (522)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 67,398
<DEPRECIATION> (23,720)
<TOTAL-ASSETS> 83,007
<CURRENT-LIABILITIES> 25,682
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 57,325
<TOTAL-LIABILITY-AND-EQUITY> 83,007
<SALES> 0
<TOTAL-REVENUES> 3,204
<CGS> 0
<TOTAL-COSTS> 3,649
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 437
<INCOME-PRETAX> (267)
<INCOME-TAX> 0
<INCOME-CONTINUING> (267)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (267)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
