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 June 30, 1998
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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
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Commission File Number 0-28136
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ICON Cash Flow Partners L.P. Six
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(Exact name of registrant as specified in its charter)
Delaware 13-3723089
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(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
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>
June 30, December 31,
1998 1997
Assets
<S> <C> <C>
Cash $ 3,462,634 $ 4,000,250
------------ -----------
Investment in finance leases
Minimum rents receivable 15,793,017 20,412,591
Estimated unguaranteed residual values 9,977,620 10,714,403
Initial direct costs 533,079 826,251
Unearned income (3,188,636) (4,216,807)
Allowance for doubtful accounts (323,728) (110,120)
------------ -----------
22,791,352 27,626,318
Investment in operating leases
Equipment, at cost 19,100,646 19,100,646
Accumulated depreciation (2,657,291) (2,230,411)
------------ -----------
16,443,355 16,870,235
Equity investment in joint ventures 2,402,862 2,149,404
------------ -----------
Investment in leveraged lease, net 1,959,814 1,845,641
------------ -----------
Investment in financings
Receivables due in installments 1,423,721 2,029,854
Initial direct costs 11,200 21,918
Unearned income (100,458) (186,139)
Allowance for doubtful accounts (17,650) (5,823)
------------ -----------
1,316,813 1,859,810
Other assets 759,022 485,510
------------ -----------
Total assets $ 49,135,852 $54,837,228
============ ===========
(continued on next page)
</TABLE>
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Consolidated Balance Sheets (Continued)
(unaudited)
<TABLE>
June 30, December 31,
1998 1997
Liabilities and Partners' Equity
<S> <C> <C>
Notes payable - non-recourse $ 25,161,962 $28,943,163
Note payable - non-recourse - secured financing 1,513,063 2,244,324
Security deposits and deferred credits 2,617,592 1,756,094
Accounts payable - other 140,431 189,835
Minority interest in joint venture 48,844 47,151
Accounts payable - equipment 21,426 -
Accounts payable - General Partner and affiliates, net - 51,323
------------- -----------
29,503,318 33,231,890
Commitments and Contingencies
Partners' equity (deficiency)
General Partner (132,254) (112,740)
Limited partners (380,103 and 380,678
units outstanding, $100 per unit original
issue price in 1998 and 1997, respectively) 19,764,788 21,718,078
------------ -----------
Total partners' equity 19,632,534 21,605,338
------------ -----------
Total liabilities and partners' equity $ 49,135,852 $54,837,228
============ ===========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Operations
(unaudited)
<TABLE>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
---- ---- ---- ----
Revenues
<S> <C> <C> <C> <C>
Rental income $ 615,000 $ 500,000 $ 1,205,986 $ 902,101
Finance income 494,537 1,249,929 1,110,147 2,491,348
Income from equity investment
in joint ventures 196,445 136,521 322,928 159,422
Income from leveraged lease, net 75,897 86,544 171,594 173,975
Interest income and other 57,013 29,739 116,523 75,300
Net gain on sales or
remarketing of equipment 34,082 123,242 128,231 202,943
------------ ------------ ------------ ------------
Total revenues 1,472,974 2,125,975 3,055,409 4,005,089
------------ ------------ ------------ ------------
Expenses
Interest 555,836 1,027,802 1,144,097 1,693,530
Depreciation 267,400 212,162 426,880 424,324
Management fees - General Partner 244,903 298,019 499,072 565,865
Amortization of initial direct costs 127,321 356,425 332,904 774,571
Administrative expense reimbursement
- General Partner 126,799 149,100 250,017 282,107
General and administrative 119,117 126,410 162,676 194,193
Provision for bad debts 25,000 - 125,000 -
Minority interest in joint venture - 26,913 1,693 39,772
------------ ------------ ------------ ------------
Total expenses 1,466,376 2,196,831 2,942,339 3,974,362
------------ ------------ ------------ ------------
Net income (loss) $ 6,598 $ (70,856) $ 113,070 $ 30,727
============ ============ ============ ============
Net income (loss) allocable to:
Limited partners $ 6,532 $ (70,148) $ 111,939 $ 30,419
General Partner 66 (709) 1,131 307
------------ ------------ ------------ ------------
$ 6,598 $ (70,148) $ 113,070 $ 30,727
============ ============ ============ ============
Weighted average number of limited
partnership units outstanding 380,111 382,201 380,245 382,490
============ ============ ============ ============
Net income (loss) per weighted average
limited partnership unit $ .02 $ (.18) $ .29 $ .08
============ ============ ============ ============
</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 Six Months Ended June 30, 1998 and
the Years Ended December 31, 1997, 1996 and 1995
(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, 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
</TABLE>
(continued on next page)
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Changes in Partners' Equity (Continued)
For the Six Months Ended June 30, 1998 and
the Years Ended December 31, 1997, 1996 and 1995
(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>
Cash distributions
to partners $ 10.66 $ .09 (4,102,940) (41,444) (4,144,384)
Limited partnership units
redeemed (2,186 units) (150,550) -
(150,550)
Net income 35,264 356 35,620
----------- ----------- ------------
Balance at
December 31, 1997 21,718,078 (112,740) 21,605,338
Cash distributions
to partners $ 5.09 $ .29 (2,043,825) (20,645) (2,064,470)
Limited partnership units
redeemed (465 units) (21,404) -
(21,404)
Net income 111,939 1,131 113,070
----------- ----------- ------------
Balance at
June 30, 1998 $19,764,788 $ (132,254) $ 19,632,534
=========== =========== ============
</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 Six Months Ended June 30,
(unaudited)
<TABLE>
1998 1997
---- ----
Cash flows provided by operating activities:
<S> <C> <C>
Net income $ 113,070 $ 30,727
------------- ------------
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 426,880 424,324
Rental income - assigned operating lease receivables (1,205,986) (902,101)
Finance income portion of receivables paid directly
to lenders by lessees (910,220) (1,468,351)
Amortization of initial direct costs 332,904 774,571
Net gain on sales or remarketing of equipment (128,231) (202,943)
Income from equity investment in joint ventures (322,928) (159,422)
Distribution from investment in joint venture 253,651 456,162
Income from leveraged lease, net (171,594) (173,975)
Interest expense on non-recourse financing
paid directly by lessees 1,078,835 1,148,095
Collection of principal - non-financed receivables 1,218,292 4,226,602
Change in operating assets and liabilities:
Allowance for doubtful accounts 252,435 -
Accounts payable to General Partner and affiliates, net (51,323) 115,887
Accounts payable - other (49,404) (556,533)
Security deposits and deferred credits 861,498 (1,578,203)
Minority interest in joint ventures 1,693 (281,630)
Other, net (84,333) 104,500
------------- ------------
Total adjustments 1,502,169 1,926,983
------------- ------------
Net cash provided by operating activities 1,615,239 1,957,710
------------- ------------
Cash flows from investing activities:
Proceeds from sales of equipment 1,038,873 1,921,587
Equipment and receivables purchased (190,413) (1,972,832)
Investment in joint venture (184,181) -
------------- -------------
Net cash provided by (used in) investing activities 664,279 (51,245)
------------- ------------
</TABLE>
(continued on next page)
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows (Continued)
For the Six Months Ended June 30,
(unaudited)
<TABLE>
1998 1997
---- ----
Cash flows from financing activities:
<S> <C> <C>
Cash distributions to partners (2,064,470) (2,076,647)
Principal payments on non-recourse securitized debt (731,261) (9,256,088)
Redeemed limited partnership units (21,404) (104,414)
Proceeds from note payable - affiliate - 7,780,328
Proceeds from non-recourse debt - 486,879
Principal payments on note payable - affiliate - (2,450,000)
------------- ------------
Net cash used in financing activities (2,817,135) (5,619,942)
------------- ------------
Net decrease in cash (537,616) (3,713,477)
Cash, beginning of period 4,000,250 4,821,624
------------- ------------
Cash, end of period $ 3,462,634 $ 1,108,147
============= ============
</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 six months ended June 30, 1998 and 1997, non-cash activities included
the following:
<TABLE>
1998 1997
---- ----
Principal and interest on direct finance
<S> <C> <C>
receivables paid directly to lenders by lessees $ 3,654,050 $ 7,151,805
Rental income - assigned operating lease receivable 1,205,986 902,101
Principal and interest on non-recourse
financing paid directly to lenders by lessees (4,860,036) (8,053,906)
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
Fair value of equipment and receivables
purchased for debt and payables - (186,715)
$ - $ -
============= ===========
</TABLE>
Interest expense of $1,144,097 and $1,693,530 for the six months ended June
30, 1998 and 1997 consisted of: interest expense on non-recourse financing
accrued or paid directly to lenders by lessees of $1,078,835 and $1,148,095,
respectively, interest expense on non-recourse secured financing of $63,832 and
$236,996, respectively, and other interest of $1,430 and $308,439, respectively.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
June 30, 1998
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 1997
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 and $18,186,117 in non-recourse debt.
The net investment in the leveraged lease as of June 30, 1998 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 341,979
Unearned income (2,382,165)
-----------
$ 1,959,814
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.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements -Continued
3. Redemption of Limited Partnership Units
The General Partner consented to the Partnership redeeming 465 limited
partnership units during 1998. 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.
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 Cash Flow L.L.C. 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 L.L.C. I"), for the purpose of acquiring and
managing an aircraft. The Partnership and Series E contributed 1% and 99% of the
cash required for such acquisition, respectively, to ICON Cash Flow L.L.C. I
Information as to the unaudited financial position and results of
operations of ICON Cash Flow L.L.C. I at June 30, 1998 is summarized below:
June 30, 1998
Assets $ 17,878,511
=============
Liabilities $ 12,444,500
=============
Equity $ 5,434,011
=============
Six Months Ended
June 30, 1998
Net income $ 164,868
=============
ICON Cash Flow L.L.C. II
In March 1995, the Partnership and Series E formed a joint venture, ICON
Cash Flow Partners L.L.C. II ("ICON Cash Flow L.L.C. II"), for the purpose of
acquiring and managing an aircraft. The Partnership and Series E contributed 99%
and 1% of the cash required for such acquisition, respectively, to ICON Cash
Flow L.L.C. II.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
ICON Receivables 1997-A L.L.C.
In March 1997 the Partnership, ICON Cash Flow Partners, L.P., Series D
("Series D"), and ICON Cash Flow Partners L.P. Seven ("L.P. Seven"), contributed
and assigned equipment lease and finance receivables and residuals to ICON
Receivables 1997-A L.L.C. ("1997-A"), a special purpose entity created for the
purpose of originating new leases, managing existing contributed assets and
securitizing its portfolio. In September 1997 the Partnership, Series E and L.P.
Seven contributed and assigned additional equipment lease and finance
receivables and residuals to 1997-A. The Partnership, Series D, Series E and
L.P. Seven (collectively the "1997-A Members") received a 31.03%, 17.81% 31.19%
and 19.97% interest, respectively, in 1997-A based on the present value of their
related contributions.
Information as to the unaudited financial position and results of
operations of 1997-A at June 30, 1998 is summarized below:
June 30, 1998
Assets $ 41,416,882
=============
Liabilities $ 35,235,264
=============
Equity $ 6,180,818
=============
Six Months Ended
June 30, 1998
Net income $ 915,589
=============
ICON Receivables 1997-B L.L.C.
In August 1997 the Partnership, Series E and L.P. Seven (collectively, the
"1997-B Members") formed ICON Receivables 1997-B L.L.C. ("1997-B"), for the
purpose of originating leases and securitizing its portfolio. On July 30, 1998,
1997-B securitized substantially all of its equipment leases and finance
receivables and residuals. The net proceeds from the securitization totaled
$40,806,901, of which $30,930,921 was used to pay down 1997-B's debt, and the
remaining proceeds, after establishing reserves for expenses, were distributed
to the 1997-B Members based on their respective interests. 1997-B became the
beneficial owner of a trust. The trustee for the trust is Manufacturers and
Traders Trust Company ("M&T"). In conjunction with this securitization, the
portfolio as well as the General Partner's servicing capabilities were rated by
Duff & Phelps and Fitch, both nationally recognized rating agencies. The General
Partner, as servicer, is responsible for managing, servicing, reporting on and
administering the portfolio. 1997-B remits all monies received from the
portfolio to M&T. M&T is responsible for disbursing to the noteholders their
respective principal and interest and to 1997-B the excess of cash collected
over debt service from the portfolio. The 1997-B Members receive their pro rata
share of any excess cash on a monthly basis from 1997-B.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
Information as to the unaudited financial position and results of
operations of 1997-B at June 30, 1998 is summarized below:
June 30, 1998
Assets $32,114,372
Liabilities $26,508,355
Equity $ 5,606,017
===========
Six Months Ended
June 30, 1998
Net income $ 436,309
===========
5. Related Party Transactions
During the six months ended June 30, 1998 and 1997, the Partnership paid or
accrued to the General Partner management fees of $499,072 and $565,865,
respectively, and administrative expense reimbursements of $250,017 and
$282,107, respectively, which were charged to operations.
For the six months ended June 30, 1998 and 1997 no acquisition fees were
paid or accrued by the Partnership.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
June 30, 1998
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, equity investment in joint ventures, leveraged leases and
financings of 51%, 37%, 5%, 4% and 3% of total investments at June 30, 1998,
respectively, and 65%, 28%, 4%, 3% and less than 1% of total investment at June
30, 1997.
Results of Operations
Three Months Ended June 30, 1998 and 1997
For the three months ended June 30, 1998 and 1997, the Partnership leased or
financed equipment with an initial cost of $0 and $84,184, respectively, to 0
and 1 lessees or equipment users, respectively.
Revenues for the three months ended June 30, 1998 were $1,472,974,
representing a decrease of $653,001 or 30.7% from 1997. The decrease in revenues
was due to a decrease in finance income of $755,392 or 60.4%, a decrease in net
gain on sales or remarketing of equipment of $89,160 or 72.4% from 1997 and a
decrease in income from leveraged leases of $10,647 or 12.3%. These decreases
were partially offset by an increase in rental income of $115,000 or 23%, an
increase in income from equity investment in joint venture of $59,924 or 43.9%
and an increase in interest income of $27,274 or 91.7%. The decrease in finance
income resulted from the decrease in the average size of the finance lease
portfolio from 1997 to 1998. The net gain on sales or remarketing decreased due
to a decrease in the number of leases maturing and the underlying equipment
being sold or remarketed. Rental income increased from 1997 due to the release
of the operating equipment to a new lessee. The original operating lease came
off lease in March 1997. The equipment was released in 1997 under new terms.
Income from equity investment in joint ventures increased due to the
Partnership's increased investment in these joint ventures. Interest income and
other increased due to an increase in the average cash balance from 1997 to
1998.
Expenses for the three months ended June 30, 1998 were $1,466,376,
representing a decrease of $730,455 or 34.4% from 1997. The decrease in expenses
was due to a decrease in interest expense of $471,966 or 45.9%, a decrease in
amortization of initial direct costs of $229,104 or 64.3%, a decrease in
management fees of $53,116 or 17.8%, a decrease in minority interest in joint
venture of $26,913 or 100% , a decrease in administrative expense reimbursements
of $22,301 or 15.0%, and a decrease in general and administrative expense of
$7,293 or 5.8% from 1997. The decreases were partially offset by an increase in
depreciation of expenses of $55,238 or 26% and an increase in the provision for
bad debts of $25,000. Interest expense decreased due to a decrease in the
average debt outstanding from 1997 to 1998. Amortization of initial indirect
costs, management fees, administrative fees and general and administrative
expenses decreased due to a decrease in the average size of the portfolio from
1997 to 1998. Expense related to the minority interest in joint venture
decreased due to the liquidation of the joint venture in the fourth quarter
1997. Depreciation expense increased from 1997 due to the release of the
operating equipment to a new lessee. The original operating lease came off lease
in March 1997. The equipment was released in 1997 under new terms. Based on an
analysis of delinquency, an assessment of overall risk and historical loss
experience, it was determined that an additional $25,000 provision for bad debt
was required for the three months ended June 30, 1998.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
June 30, 1998
Net income (loss) for the three months ended June 30, 1998 and 1997 was
$6,598 and $(70,856), respectively. The net income (loss) per weighted average
limited partnership unit was $.02 and $(.18), respectively.
Six Months Ended June 30, 1998 and 1997
For the six months ended June 30, 1998 and 1997, the Partnership leased or
financed equipment with an initial cost of $190,413 and $1,825,327,
respectively, to 4 and 5 lessees or equipment users, respectively. The weighted
average initial transaction term relating to these transactions was 46 and 25
months, respectively.
Revenues for the six months ended June 30, 1998 were $3,055,409,
representing a decrease of $949,680 or 23.7% from 1997. The decrease in revenues
was due to a decrease in finance income of $1,381,201 or 55.4%, a decrease in
net gain on sales or remarketing of equipment of $74,712 or 36.8% and a decrease
in income from leveraged leases of $2,382 or 1.4%. The decreases were partially
offset by an increase in rental income of $303,885 or 3.7%, an increase in
income from equity investment in joint venture of $163,506 or 102.6% and an
increase in interest income and other of $41,223 or 54.8%. The decrease in
finance income resulted from a decrease in the size of the average finance and
operating lease portfolios from 1997 to 1998. Net gain on sales or remarketing
of equipment decreased due to a decrease in the number of leases maturing, and
the underlying equipment being sold or remarketed. Rental income increased due
to the release of the operating equipment to a new lessee. The original
operating lease came off lease in March 1997. The equipment was released in 1997
under new terms. The increase in income from equity investment in joint ventures
increased due to the Partnership's increased investment in these joint ventures.
Interest income and other increased due to an increase in the average cash
balance from 1997 to 1998.
Expenses for the six months ended June 30, 1998 were $2,942,339, representing
a decrease of $1,032,023 or 26.0% from 1997. The decrease in expenses was due to
a decrease in interest expense of $549,433 or 32.4%, a decrease in the
amortization if initial indirect costs of $441,667 or 57%, a decrease in
management fees of $66,793 or 11.8%, a decrease in minority interest in joint
venture of $38,079 or 95.7%, a decrease in administrative expense reimbursements
of $32,090 or 11.4% and a decrease in general and administrative expense of
$31,517 or 16.2%. These decreases were partially offset by an increase in
provision for bad debts of $125,000 or 100% and an increase in depreciation of
$2,556 or 18%. Interest expense decreased due to decrease in average debt
outstanding from 1997 to 1998. Amortization of initial indirect costs,
management fees, administrative fees and general and administrative expenses
decreased due to a decrease in the average size of the portfolio from 1997 to
1998. Expense related to the minority interest in joint venture decreased due to
the liquidation of the joint venture in the fourth quarter 1997. Depreciation
expense increased from 1997 due to the release of the operating equipment to a
new lessee. The original operating lease came off lease in March 1997. The
equipment was released in 1997 under new terms. Based on an analysis of
delinquency, an assessment of overall risk and historical loss experience, it
was determined that an additional provision of $125,000 for bad debt was
required for the six months ended June 30, 1998.
Net income for the six months ended June 30, 1998 and 1997 was $113,070 and
$30,727, respectively. The net loss per weighted average limited partnership
unit was $.29 and $.08, respectively.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
June 30, 1998
Liquidity and Capital Resources
The Partnership's primary sources of funds for the six months ended June 30,
1998 and 1997 were cash provided by operations of $1,615,239 and $1,957,710,
respectively, and proceeds from sales of equipment of $1,038,873 and $1,921,587,
respectively. These funds were used to make payments on borrowings, to fund cash
distributions and to purchase equipment. The Partnership intends to purchase
additional equipment and to fund cash distributions utilizing cash from
operations, proceeds from sales of equipment and borrowings.
Cash distributions to limited partners for the six months ended June 30, 1998
and 1997, which were paid monthly, totaled $2,043,825 and $2,055,881,
respectively, of which $111,939 and $30,419 was investment income and $1,931,886
and $2,025,462 was a return of capital, respectively. The monthly annualized
cash distribution rate to limited partners was 10.75%, of which .59% and .15%
was investment income and 10.16% and 10.60% was a return of capital,
respectively, calculated as a percentage of each partners initial capital
contribution. The limited partner distribution per weighted average unit
outstanding for the six months ended June 30, 1998 and 1997 was $5.38 of which
$.29 and $.08 was investment income and $5.09 and $5.30 was a return of capital,
respectively.
As of June 30, 1998, 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 operations, sales of
equipment and borrowings, the Partnership will invest in equipment leases and
financings and make distributions to limited partners 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 by the Partnership during the quarter ended
June 30, 1998.
<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. 33-36376 (Registrant)
By its General Partner,
ICON Capital Corp.
August 14, 1998 /s/ 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
<NAME> ICON Cash Flow Partners L.P. Six
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 3,462,634
<SECURITIES> 0
<RECEIVABLES> 19,301,393
<ALLOWANCES> 341,378
<INVENTORY> 0
<CURRENT-ASSETS> * 0
<PP&E> 19,100,646
<DEPRECIATION> 2,657,291
<TOTAL-ASSETS> 49,135,852
<CURRENT-LIABILITIES> ** 0
<BONDS> 26,675,025
0
0
<COMMON> 0
<OTHER-SE> 19,632,534
<TOTAL-LIABILITY-AND-EQUITY> 49,135,852
<SALES> 2,938,885
<TOTAL-REVENUES> 3,055,409
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,673,242
<LOSS-PROVISION> 125,000
<INTEREST-EXPENSE> 1,144,097
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 113,070
<EPS-PRIMARY> 0.29
<EPS-DILUTED> 0.29
<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>
