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 period ended March 31, 1997
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[ ] 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 33-36376
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ICON Cash Flow Partners L.P. Six
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3723089
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
600 Mamaroneck Avenue, Harrison, New York 10528-1632
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(Address of principal executive offices) (Zip code)
(914) 698-0600
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Registrant's telephone number, including area code
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.
[ x] Yes [ ] No
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Consolidated Balance Sheets
(unaudited)
<TABLE>
March 31, December 31,
1997 1996
Assets
<S> <C> <C>
Cash $ 1,754,458 $ 4,821,624
---------------- ---------------
Investment in finance leases
Minimum rents receivable 38,691,218 45,645,436
Estimated unguaranteed residual values 11,644,985 11,924,455
Initial direct costs 1,367,987 1,624,309
Unearned income (7,604,077) (9,073,073)
Allowance for doubtful accounts (463,166) (485,627)
---------------- ---------------
43,636,947 49,635,500
Investment in operating leases
Equipment, at cost 19,371,603 19,371,603
Accumulated depreciation (1,697,298) (1,485,136)
Initial direct costs - 47,945
---------------- ---------------
17,674,305 17,934,412
Investment in financings
Receivables due in installments 3,474,501 7,737,022
Initial direct costs 51,770 138,928
Unearned income (372,486) (1,165,426)
Allowance for doubtful accounts (13,198) (13,198)
---------------- ---------------
3,140,587 6,697,326
Equity investment in joint ventures 5,621,987 45,724
---------------- ---------------
Investment in leverage lease, net 2,140,641 2,086,672
---------------- ---------------
Other assets 869,769 583,884
---------------- ---------------
Total assets $ 74,838,694 $ 81,805,142
================ ===============
</TABLE>
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Consolidated Balance Sheets (continued)
(unaudited)
<TABLE>
March 31, December 31,
1997 1996
Liabilities and Partners' Equity
<S> <C> <C>
Notes payable - non-recourse $ 36,604,885 $ 39,001,676
Note payable - affiliate 6,780,328 -
Note payable - non-recourse - securitized 3,625,955 12,134,273
Accounts payable - other 1,229,105 753,769
Minority interest in joint venture 681,291 877,893
Security deposits and deferred credits 582,648 2,929,380
Accounts payable - equipment 417,048 243,499
---------------- ---------------
49,921,260 55,940,490
Commitments and Contingencies
Partners' equity (deficiency)
General Partner (81,036) (71,652)
Limited partners (382,739 and 382,864
units outstanding, $100 per unit original
issue price in 1997 and 1996, respectively) 24,998,470 25,936,304
---------------- ---------------
Total partners' equity 24,917,434 25,864,652
---------------- ---------------
Total liabilities and partners' equity $ 74,838,694 $ 81,805,142
================ ===============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Operations
For the Three Months Ended March 31,
(unaudited)
<TABLE>
1997 1996
---- ----
Revenue
<S> <C> <C>
Finance income $ 1,241,419 $ 1,754,362
Rental income 402,101 603,151
Income from leveraged lease, net 86,544 -
Net gain on sales or remarketing
of equipment 79,701 58,597
Interest income and other 45,561 115,501
Income from equity investment
in joint ventures 22,901 1,506
------------- -------------
Total revenues 1,878,227 2,533,117
------------- -------------
Expenses
Interest 665,728 1,180,959
Amortization of initial direct costs 418,146 331,719
Management fees - General Partner 267,846 489,485
Depreciation 212,162 212,162
Administrative expense
reimbursements - General Partner 133,007 225,277
General and administrative 67,783 168,798
Minority interest in joint venture 12,859 18,471
Provision for bad debts - 150,000
------------- -------------
Total expenses 1,777,531 2,776,871
------------- -------------
Net income (loss) $ 100,696 $ (243,754)
============= =============
Net income (loss) allocable to:
Limited partners $ 99,689 $ (241,316)
General Partner 1,007 (2,438)
------------- -------------
$ 100,696 $ (243,754)
============= =============
Weighted average number of limited
partnership units outstanding 382,781 383,436
============= =============
Net income (loss) per weighted average
limited partnership unit $ .26 $ (.63)
============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Changes in Partners' Equity
For the Three Months Ended March 31, 1997 and
the Years Ended December 31, 1996, 1995 and 1994
(unaudited)
<TABLE>
Limited Partner Distributions
Return of Investment Limited General
Capital Income Partners Partner Total
(Per weighted average unit)
<S> <C> <C> <C> <C> <C>
Balance at
December 31, 1993 $ 1,000 $ 1,000 $ 2,000
Refund of initial
limited partners'
capital contribution (1,000) - (1,000)
Proceeds from issuance
of limited partnership
units (127,704.10 units) 12,770,410 - 12,770,410
Sales and offering expenses (1,724,005) - (1,724,005)
Cash distributions
to partners $ 7.59 $ 2.21 (311,335) (3,145) (314,480)
Net income 70,181 709 70,890
-------------- ------------ -------------
Balance at
December 31, 1994 10,805,251 (1,436) 10,803,815
Proceeds from issuance
of limited partnership
units (256,153.02 units) 25,615,302 - 25,615,302
Sales and
offering expenses (3,458,068) - (3,458,068)
Cash distributions
to partners $ 9.48 $ .29 (2,543,783) (25,694) (2,569,477)
Limited partnership units
redeemed (265 units) (20,827) - (20,827)
Net income 75,307 761 76,068
-------------- ------------ -------------
Balance at
December 31, 1995 30,473,182 (26,369) 30,446,813
Cash distributions
to partners $ 10.75 $ - (4,119,354) (41,613) (4,160,967)
Limited partnership units
redeemed (728 units) (54,227) - (54,227)
Net loss (363,297) (3,670) (366,967)
-------------- ------------ -------------
Balance at
December 31, 1996 25,936,304 (71,652) 25,864,652
Cash distributions
to partners $ 2.43 $ .26 (1,028,723) (10,391) (1,039,114)
Limited partnership units
redeemed (125 units) (8,800) - (8,880)
Net income 99,689 1,007 100,696
-------------- ------------ -------------
Balance at
March 31, 1997 $ 24,998,470 $ (81,036) $ 24,917,434
============== ============ =============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows
For the Three Months Ended March 31,
<TABLE>
1997 1996
---- ----
Cash flows from operating activities:
<S> <C> <C>
Net income (loss) $ 100,696 $ (243,754)
------------- -------------
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation 212,162 212,162
Rental income - assigned operating lease receivables (402,101) (603,151)
Finance income portion of receivables paid directly
to lenders by lessees (672,539) (888,182)
Amortization of initial direct costs 418,146 331,719
Allowance for doubtful accounts - 135,562
Net gain on sales or remarketing of equipment (79,701) (58,597)
Income from leveraged lease, net (86,544) -
Income from equity investment in joint venture (22,901) (1,506)
Distribution from investment in joint venture - 1,482,236
Interest expense on non-recourse financing paid directly by lessees 349,836 601,034
Interest expense accrued on non-recourse debt - 407,271
Collection of principal - non-financed receivables 2,453,578 2,571,188
Change in operating assets and liabilities:
Accounts payable to General Partner and affiliates, net - (363,258)
Accounts payable - other 475,336 (27,766)
Security deposits and deferred credits (2,346,732) 95,717
Minority interest in joint ventures (196,602) (1,890,880)
Other, net 225,072 (69,108)
------------- -------------
Total adjustments 327,010 1,934,441
------------- -------------
Net cash provided by operating activities 427,979 1,690,687
------------- -------------
Cash flows from investing activities:
Equipment and receivables purchased (1,541,032) (6,329,190)
Proceeds from sales of equipment 821,791 270,677
Initial direct costs - (372,089)
------------- -------------
Net cash used in investing activities (719,241) (6,430,602)
------------- -------------
Cash flows from financing activities:
Proceeds from note payable-affiliate 7,780,328 -
Principal payments on note payable - affiliate (1,000,000) -
Proceeds from non-recourse securitized debt - 5,941,893
Principal payments on non-recourse securitized debt (8,508,318) (2,197,059)
Cash distributions to partners (1,039,114) (1,041,316)
Redemption of limited partnership units` (8,800) (14,173)
------------- -------------
Net cash provided by (used in) financing activities (2,775,904) 2,689,345
------------- -------------
Net decrease in cash (3,067,166) (2,050,570)
Cash at beginning of period 4,821,624 8,981,950
------------- -------------
Cash at end of period $ 1,754,458 $ 6,931,380
============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows (continued)
Supplemental Disclosures of Cash Flow Information
For the three months ended March 31, 1997 and 1996, non-cash activities
included the following:
<TABLE>
1997 1996
---- ----
Principal and interest on direct finance
receivables paid directly to
<S> <C> <C>
lenders by lessees $ 2,895,846 $ 8,022,035
Principal and interest on non-recourse
financing paid directly to lenders by lessees (2,895,846) (8,022,035)
Decrease in investments in finance leases and financings
due to contribution to joint venture 5,575,104 -
Increase in equity investment in joint venture (5,575,104) -
Non-recourse notes payable assumed
in purchase price 186,715 10,579,054
Fair value of equipment and receivables
purchased for debt and payables (186,715) (10,579,054)
-------------- --------------
$ - $ -
============== =========
</TABLE>
Interest expense of $665,728 and $1,180,959 for the three months ended
March 31, 1997 and 1996 consisted of: interest expense on non-recourse financing
accrued or paid directly to lenders by lessees of $349,836 and $1,008,305,
respectively, interest expense on recourse financing of $238,152 and $0 and
other interest of $77,740 and $172,654, respectively.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
March 31, 1997
(unaudited)
1. Basis of Presentation
The consolidated financial statements of ICON Cash Flow Partners L.P. Six
(the "Partnership") have been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission (the "SEC") and, in the opinion of
management, include all adjustments (consisting only of normal recurring
accruals) necessary for a fair statement of income for each period shown.
Certain information and footnote disclosures normally included in consolidated
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such SEC rules and
regulations. Management believes that the disclosures made are adequate to make
the information represented not misleading. The results for the interim period
are not necessarily indicative of the results for the full year. These
consolidated financial statements should be read in conjunction with the
consolidated financial statements and notes included in the Partnership's 1996
Annual Report on Form 10-K.
2. Net Investment in Leveraged Lease
In September 1996 the Partnership acquired, subject to a leveraged lease,
the residual interest in an aircraft. The aircraft is an A-300B4-203 currently
on lease to Airbus. The purchase price was $19,595,956, consisting of $1,409,839
in cash, the assumption of non-recourse senior debt of $12,495,956 and
non-recourse junior debt of $5,590,161.
The net investment in the leveraged leases as of March 31, 1997 consisted of the
following:
Non-cancelable minimum rents receivable (net of principal and
interest on non-recourse debt) $ -
Estimated unguaranteed residual values 4,000,000
Initial direct costs 504,448
Unearned income (2,363,807)
--------------
$ 2,140,641
The non-cancelable rents are being paid directly to the lenders by the
lessees to satisfy the principal and interest on the non-recourse debt assumed.
Prior to the acquisition, the free cash flow (rent in excess of the
senior debt payments or junior debt) was financed by an affiliated partnership,
ICON Cash Flow Partners, L.P., Series E. On January 29, 1997 the Partnership
re-financed the junior debt with a third party.
3. Redemption of Limited Partnership Units
The General Partner consented to the Partnership redeeming 125 limited
partnership units during 1997. The redemption amount was calculated following
the specified redemption formula as per the Partnership agreement. Redeemed
units have no voting rights and do not share in distributions. The Partnership
agreement limits the number of units which can be redeemed in any one year and
redeemed units may not be reissued. Redeemed limited partnership units are
accounted for as a deduction from partners equity.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements (continued)
4. Investment in Joint Ventures
The Partnership Agreement allows the Partnership to invest in joint
ventures with other limited partnerships sponsored by the General Partner
provided that the investment objectives of the joint ventures are consistent
with that of the Partnership.
ICON Asset Acquisition LLC
On February 3, 1995 the Partnership and two affiliates, ICON Cash Flow
Partners, L.P., Series B ("Series B"), and ICON Cash Flow Partners, L.P., Series
C ("Series C") formed ICON Asset Acquisition L.L.C. I ("ICON Asset Acquisition
LLC") as a special purpose limited liability company. ICON Asset Acquisition LLC
was formed for the purpose of acquiring, managing and securitizing a portfolio
of leases. The Partnership, Series B and Series C contributed $8,700,000 (77.68%
interest), $1,000,000 (8.93% interest) and $1,500,000 (13.39% interest),
respectively, to ICON Asset Acquisition LLC. On February 17, 1995, ICON Asset
Acquisition LLC purchased an existing portfolio of leases. The purchase price of
the portfolio totaled $27,854,266, and the underlying equipment consists of
graphic arts and printing equipment. On September 5, 1995, ICON Asset
Acquisition LLC securitized substantially all of its portfolio and became the
beneficial owner of a trust and the Prudential Insurance Company of America
("Prudential") the lender to the trust. On January 28, 1997, ICON Asset
Acquisition LLC re-financed its outstanding $7,780,000 obligation to Prudential
with proceeds it received from a loan from ICON Cash Flow Partners, L.P., Series
E ("Series E"), an affiliate of the Partnership. The loan is short-term, and is
expected to be re-financed by June 30, 1997. ICON Asset Acquisition LLC is
charged an interest rate that is equal to Series E's cost of funds, which is
approximately 8.0%.
The Partnership's consolidated financial statements include 100% of the
accounts of ICON Asset Acquisition LLC with the affiliates' share reflected as
"Minority interests in joint ventures."
ICON Cash Flow LLC I
In September 1994 the Partnership and an affiliate, ICON Cash Flow
Partners, L.P., Series E ("Series E"), formed a joint venture, ICON Cash Flow
Partners L.L.C. I ("ICON Cash Flow LLC I"), for the purpose of acquiring and
managing an aircraft currently on lease to Alaska Airlines, Inc. The Partnership
and Series E contributed 1% and 99% of the cash required for such acquisition,
respectively, to ICON Cash Flow LLC I. ICON Cash Flow LLC I acquired the
aircraft, assuming non-recourse debt and utilizing contributions received from
the Partnership and Series E. The lease is an operating lease. Profits, losses,
excess cash and disposition proceeds are allocated 1% to the Partnership and 99%
to Series E. The General Partner manages and controls the business affairs of
both the Partnership and Series E. As a result of this common control and the
Partnership's ability to influence the activities of the joint venture, the
Partnership's investment in the joint
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements (continued)
venture is accounted for under the equity method. Information as to the
financial position and results of operations of ICON Cash Flow LLC I as of and
for the three months ended March 31, 1997 is summarized below:
March 31, 1997
Assets $ 18,117,350
================
Liabilities $ 13,197,112
================
Equity $ 4,920,238
================
Three Months Ended
March 31, 1997
Net income $ 175,346
================
ICON Cash Flow LLC II
In March 1995 the Partnership and an affiliate, ICON Cash Flow Partners,
L.P., Series E ("Series E"), formed a joint venture, ICON Cash Flow Partners
L.L.C. II ("ICON Cash Flow LLC II"), for the purpose of acquiring and managing
an aircraft currently on lease to Alaska Airlines, Inc. The Partnership and
Series E contributed 99% and 1% of the cash required for such acquisition,
respectively, to ICON Cash Flow LLC II. ICON Cash Flow LLC II acquired the
aircraft, assuming non-recourse debt and utilizing contributions received from
the Partnership and Series E. The lease is an operating lease. Profits, losses,
excess cash and disposition proceeds are allocated 99% to the Partnership and 1%
to Series E. The Partnership's consolidated financial statements include 100% of
ICON Cash Flow LLC II. Series E's investment in ICON Cash Flow LLC II has been
reflected as "Minority interest in joint venture."
ICON Receivables 1997-A LLC
On March 11, 1997, the Partnership and two affiliates, ICON Cash Flow
Partners, L.P., Series D and ICON Cash Flow Partners L.P. Seven, (collectively
"the Members"), contributed and assigned $6,712,631, $5,794,273 and $6,582,150
in equipment lease and finance receivables and residuals with a net book value
of $5,553,962, $4,874,857 and $5,465,238, respectively to ICON Receivables
1997-A LLC ("1997-A"), a special purpose entity created by the Members. The
Members received a 34.94%, 30.67% and 34.39% interest, respectively, in 1997-A
based on the present value of their related contributions. 1997-A was formed for
the purpose of originating new leases, managing existing contributed assets and,
eventually, securitizing its portfolio. In order to fund the acquisition of new
leases, 1997-A obtained a warehouse borrowing facility from Prudential
Securities Credit Corporation (the "Facility"). Borrowings under the Facility
are based on the present value of the new leases, provided that in the
aggregate, the amount outstanding cannot exceed $20,000,000. Outstanding amounts
under the Facility bear interest equal to Libor plus 1.5%. Collections of
receivables from new leases are used to pay down the Facility, however, in the
event of a default, all of 1997- A's assets are available to cure such default.
The net proceeds from the expected securitization of these assets will be used
to pay-off the remaining Facility balance and the remaining proceeds will be
distributed to the Members in accordance with their membership interests. The
Partnership accounts for its investment in 1997- A under the equity method.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements (continued)
Information as to the financial position and results of operations of
1997-A as of and for the quarter ended March 31, 1997 is summarized below:
March 31, 1997
Assets $ 23,430,264
=================
Liabilities $ 7,475,691
=================
Equity $ 15,954,573
=================
Three Months Ended
March 31, 1997
Net income $ 60,516
=================
5. Related Party Transactions
Fees and other expenses paid or accrued by the Partnership to the General
Partner or its affiliates for the three months ended March 31, 1997 and 1996 are
as follows:
1997 1996
---- ----
Management fees $ 267,846 $ 489,485 Charged to Operations
Acquisition fees - 372,089 Capitalized
Administrative expense
reimbursements 133,007 225,277 Charged to Operations
---------- -----------
Total $ 400,853 $ 1,086,851
========== ===========
The Partnership has investments in four joint ventures with other
Partnerships sponsored by the General Partner (See Note 4 for additional
information relating to the joint ventures).
Prior to the Partnership acquiring its investment in leveraged leases (see
Note 2), the related free cash flow was financed by ICON Cash Flow Partners,
L.P., Series E, an affiliate of the Partnership. On January 29, 1997, the
Partnership re-financed the junior debt with an unrelated third party.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
March 31, 1997
Item 2. General Partner's Discussion and Analysis of Financial Condition and
Results of Operations
The Partnership's portfolio consisted of a net investment in finance
leases, operating leases, financings, leveraged leases and equity investment in
joint venture of 66%, 26%, 5%, 3%, and less than 1% of total investments at
March 31, 1997, respectively, and 73%, 19%, 0%, 8% and less than 1% of total
investments at March 31, 1996, respectively.
For the three months ended March 31, 1997 and 1996, the Partnership leased
or financed equipment with initial costs of $1,728,312 and $12,402,972,
respectively, to 42 and 21 lessees or equipment users, respectively. The
weighted average initial transaction term for each year was 33 and 38 months,
respectively.
Results of Operations for the Three Months Ended March 31, 1997 and 1996
Revenues for the three months ended March 31, 1997 were $1,878,227,
representing a decrease of $654,980 or 26% from 1996. The decrease in revenues
was attributable to a decrease in finance income of $512,943 or 29%, a decrease
in rental income of $201,050 or 33% and a decrease in interest income and other
of $69,940 or 61%. The decrease in income was partially offset by an increase in
income from leveraged lease of $86,544, an increase in income from equity
investment in joint ventures of $21,395 and an increase in net gain on sales or
remarketing of equipment of $21,104. The decrease in finance and rental income
resulted from a decrease in the average size of the finance and operating lease
portfolios from 1996 to 1997. Interest income and other decreased due to a
decrease in the average cash balance from 1996 to 1997. The net gain on sales or
remarketing of equipment increased due to an increase in the number of leases
maturing, and the underlying equipment being sold or remarketed, for which the
proceeds received were in excess of the remaining carrying value of the
equipment. Income from equity investment in joint ventures and income from
leveraged lease increased due to the Partnerships increased investment in these
transactions in December 1996 and March 1997.
Expenses for the three months ended March 31, 1997 were $1,777,531,
representing a decrease of $999,340 or 36% from 1996. The decrease in expenses
was attributable to a decrease in interest expense of $515,231 or 44%, a
decrease in management fees of $221,639 or 45%, a decrease in provision for bad
debt of $150,000, a decrease in general and administrative of $101,015 or 60%
and a decrease in administrative expense and reimbursements of $92,270 or 41%.
These increases were partially offset by an increase in amortization of IDC of
$86,427. Interest expense decreased due to a decrease in the average debt
outstanding from 1996 to 1997. Management fees, general and administrative and
administrative expense reimbursements decreased due to a decrease in the average
size of the portfolio from 1996 to 1997 and as the result of the Partnership
contributing a portion of its portfolio to a joint venture. Based on an analysis
of delinquency, an assessment of overall risk and historical loss experience, it
was determined that no provision for bad debt was required for the quarter ended
March 31, 1997.
Net income (loss) for the three months ended March 31, 1997 and 1996 was
$100,696 and ($243,754), respectively. The net income (loss) per weighted
average limited partnership unit outstanding was $.26 and ($.64) for 1997 and
1996, respectively.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
March 31, 1997
Liquidity and Capital Resources
The Partnership's primary sources of funds for the three months ended March
31, 1997 and 1996 were net cash provided by operations of $427,979 and
$1,690,687, respectively, and proceeds from sales of equipment of $821,791 and
$270,677, respectively. These funds were used to purchase equipment, to fund
cash distributions and to make payments on borrowings. The Partnership intends
to continue to purchase additional equipment and to fund cash distributions
utilizing cash provided by operations and proceeds from sales of equipment.
Cash distributions to limited partners for the three months ended March 31,
1996 and 1996, which were paid monthly, totaled $1,028,723 and $1,030,903,
respectively, of which $99,689 and $0 was investment income and $929,034 and
$1,030,903 was a return of capital, respectively. The monthly annualized cash
distribution rate to limited partners was 10.75%, of which 1.03% and 0% was
investment income and 9.72% and 10.75% was a return of capital, respectively.
The limited partner distribution per weighted average unit outstanding in 1997
and 1996 was $2.69 and $2.69, respectively, of which $.26 and $0 was investment
income and $2.43 and $2.69 was a return of capital, respectively.
On March 11, 1997, the Partnership and two affiliates, ICON Cash Flow
Partners, L.P., Series D and ICON Cash Flow Partners L.P. Seven, (collectively
"the Members"), contributed and assigned $6,712,631, $5,794,273 and $6,582,150
in equipment lease and finance receivables and residuals with a net book value
of $5,553,962, $4,874,857 and $5,465,238, respectively to ICON Receivables
1997-A LLC ("1997-A"), a special purpose entity created by the Members. The
Members received a 34.94%, 30.67% and 34.39% interest, respectively, in 1997-A
based on the present value of their related contributions. 1997-A was formed for
the purpose of originating new leases, managing existing contributed assets and,
eventually, securitizing its portfolio. In order to fund the acquisition of new
leases, 1997-A obtained a warehouse borrowing facility from Prudential
Securities Credit Corporation (the "Facility"). Borrowings under the Facility
are based on the present value of the new leases, provided that in the
aggregate, the amount outstanding cannot exceed $20,000,000. Outstanding amounts
under the Facility bear interest equal to Libor plus 1.5%. Collections of
receivables from new leases are used to pay down the Facility, however, in the
event of a default, all of 1997- A's assets are available to cure such default.
The net proceeds from the expected securitization of these assets will be used
to pay-off the remaining Facility balance and the remaining proceeds will be
distributed to the Members in accordance with their membership interests. The
Partnership accounts for its investment in 1997- A under the equity method.
As of March 31, 1997, except as noted above, there were no known trends or
demands, commitments, events or uncertainties which are likely to have any
material effect on liquidity. As cash is realized from closings of limited
partnership units, operations, sales of equipment and borrowings, the
Partnership will invest in equipment leases and financings where it deems it to
be prudent while retaining sufficient cash to meet its reserve requirements and
recurring obligations as they become due.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended March 31, 1997.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
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.
ICON Cash Flow Partners L. P. Six
File No. 33-44413 (Registrant)
By its General Partner,
ICON Capital Corp.
May 15, 1997 Gary N. Silverhardt
- ------------- -------------------------------------------------
Date Gary N. Silverhardt
Chief Financial Officer
(Principal financial and account officer of
the General Partner of the Registrant)
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000910632
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,754,458
<SECURITIES> 0
<RECEIVABLES> 70,528,549
<ALLOWANCES> 476,364
<INVENTORY> 173,954
<CURRENT-ASSETS> * 0
<PP&E> 19,371,603
<DEPRECIATION> 1,697,298
<TOTAL-ASSETS> 74,838,694
<CURRENT-LIABILITIES> ** 0
<BONDS> 27,961,670
0
0
<COMMON> 0
<OTHER-SE> 24,917,434
<TOTAL-LIABILITY-AND-EQUITY> 74,838,694
<SALES> 1,878,227
<TOTAL-REVENUES> 1,878,227
<CGS> 643,167
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 468,636
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 665,728
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 100,696
<EPS-PRIMARY> 0.26
<EPS-DILUTED> 0.26
<FN>
* The Partnership has an unclassified balance sheet in its financial
statements due to the nature of its industry. A value of "0" was used for
current assets and liabilities.
** The Partnership has an unclassified balance sheet in its financial
statements due to the nature of its industry. A value of "0" was used for
current assets and liabilities.
</FN>
</TABLE>
