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 September 30, 2000
-----------------------------------------------------------
[ ] 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 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
incorporation or organization) Identification Number)
111 Church Street, White Plains, New York 10601-1505
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(Address of principal executive offices) (Zip code)
(914) 993-1700
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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>
September 30, December 31,
2000 1999
Assets
<S> <C> <C>
Cash ........................................... $ 5,606,926 $ 3,991,527
------------ ------------
Investment in finance leases
Minimum rents receivable .................... 8,324,891 11,854,142
Estimated unguaranteed residual values ...... 5,095,691 6,186,947
Initial direct costs ........................ 68,679 104,184
Unearned income ............................. (1,582,112) (2,586,265)
Allowance for doubtful accounts ............. (267,306) (266,670)
------------ ------------
11,639,843 15,292,338
Investment in operating leases
Equipment, at cost .......................... 19,100,646 19,100,646
Accumulated depreciation .................... (4,061,303) (3,592,403)
------------ ------------
15,039,343 15,508,243
Investments in unconsolidated joint ventures ... 2,987,644 3,072,508
------------ ------------
Investment in financings
Receivables due in installments ............. 25,025 134,766
Initial direct costs ........................ (14) 334
Unearned income ............................. (619) (6,008)
Allowance for doubtful accounts ............. (4,018) (4,018)
------------ ------------
20,374 125,074
------------ ------------
Other assets ................................... 758,286 627,003
------------ ------------
Total assets ................................... $ 36,052,416 $ 38,616,693
============ ============
</TABLE>
(continued on next page)
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
Consolidated Balance Sheets (Continued)
(unaudited)
<TABLE>
September 30, December 31,
2000 1999
Liabilities and Partners' Equity
<S> <C> <C>
Notes payable - non-recourse .......................................... $ 18,781,346 $ 20,677,786
Note payable - non-recourse - secured financing ....................... 103,145
Security deposits and deferred credits ................................ 2,852,862 2,700,125
Accounts payable ...................................................... 266,978 125,530
Minority interest in consolidated joint venture ....................... 65,260 59,061
------------ ------------
21,966,446 23,665,647
Commitments and Contingencies
Partners' equity (deficiency)
General Partner .................................................... (186,872) (178,293)
Limited partners (378,288.47 and 378,488.47 units outstanding,
$100 per unit original issue price in 2000 and 1999, respectively) 14,272,842 15,129,339
------------ ------------
Total partners' equity ........................................... 14,085,970 14,951,046
------------ ------------
Total liabilities and partners' equity ................................ $ 36,052,416 $ 38,616,693
============ ============
</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 Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
---- ---- ---- ----
Revenues
<S> <C> <C> <C> <C>
Rental income .......................... $ 616,500 $ 615,000 $ 1,848,000 $ 1,845,000
Finance income ......................... 630,713 427,222 2,032,263 1,623,905
Net gain on sales of equipment ...... 476,813 6,522 590,827 302,396
Income (loss) from equity investment
in joint ventures ..................... (1,434) 25,184 178,426 183,598
Interest income and other .............. 68,320 31,612 155,410 42,679
----------- ----------- ----------- -----------
Total revenues ...................... 1,790,912 1,105,540 4,804,926 3,997,578
----------- ----------- ----------- -----------
Expenses
Interest ............................ 441,681 373,277 1,273,234 1,244,203
General and administrative .......... 67,747 83,158 276,090 217,215
Depreciation ........................ 156,300 156,301 468,900 468,900
Management fees - General Partner ... 110,100 138,586 345,749 535,535
Minority interest in joint ventures . 1,100 2,376 6,198 6,874
Amortization of initial direct costs 9,212 38,112 35,846 143,413
Administrative expense reimbursements
- General Partner ................. 54,633 74,057 174,932 273,183
----------- ----------- ----------- -----------
Total expenses ......................... 840,773 865,867 2,580,949 2,889,323
----------- ----------- ----------- -----------
Net income ............................. $ 950,139 $ 239,673 $ 2,223,977 $ 1,108,255
=========== =========== =========== ===========
Net income allocable to:
Limited partners .................... $ 940,638 $ 237,276 $ 2,201,737 $ 1,097,172
General Partner ..................... 9,501 2,397 22,240 11,083
----------- ----------- ----------- -----------
$ 950,139 $ 239,673 $ 2,223,977 $ 1,108,255
=========== =========== =========== ===========
Weighted average number of limited
partnership units outstanding 378,288 378,859 378,321 379,187
=========== =========== =========== ===========
Net income per weighted average
limited partnership unit $ 2.49 $ .63 $ 5.82 $ 2.89
=========== =========== =========== ===========
</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 Nine Months Ended September 30, 2000 and
the Year Ended December 31, 1999
(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, 1998 $18,033,779 $(149,325) $17,884,454
Cash distributions
to partners $7.56 $3.19 (4,075,766) (41,178) (4,116,944)
Limited partnership units
Redeemed (984.73 units) (37,484) - (37,484)
Net income 1,208,810 12,210 1,221,020
----------- --------- -----------
Balance at
December 31, 1999 15,129,339 (178,293) 14,951,046
Cash distributions
to partners $2.24 $5.82 (3,050,402) (30,819) (3,081,221)
Limited partnership units
Redeemed (200 units) (7,832) - (7,832)
Net income 2,201,737 22,240 2,223,977
----------- --------- -----------
Balance at
September 30, 2000 $14,272,842 $(186,872) $14,085,970
=========== ========= ===========
</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 Nine Months Ended September 30,
(unaudited)
<TABLE>
2000 1999
---- ----
Cash flows from operating activities:
<S> <C> <C>
Net income ......................................................... $ 2,223,977 $ 1,108,255
----------- -----------
Adjustments to reconcile net income to
net cash provided by operating activities:
Rental income - paid directly to lenders by lessees ............... (1,848,000) (1,845,000)
Interest expense on non-recourse financing paid directly by lessees 1,270,535 1,212,612
Finance income portion of receivables paid directly
to lenders by lessees ........................................... (1,122,236) (1,297,365)
Amortization of initial direct costs .............................. 35,846 143,413
Income from investments in unconsolidated joint ventures .......... (178,426) (183,598)
Depreciation ...................................................... 468,900 468,900
Gain on sales of equipment ........................................ (590,827) (302,396)
Change in operating assets and liabilities:
Other assets ..................................................... (131,283)
Collection of principal - non-financed receivables ............... 454,309 1,982,792
Distributions received from unconsolidated joint ventures ........ 152,303 574,496
Accounts receivable from General Partner and affiliates, net ..... -- (162,250)
Minority interest in consolidated joint venture .................. 6,198 6,874
Security deposits and deferred credits ........................... 152,737 (339,790)
Accounts payable ................................................. 141,448
Accounts payable to General Partner and affiliates ............... -- (425,089)
Other ............................................................ (196,710) 168,768
----------- -----------
Total adjustments .............................................. (1,385,206) 2,367
----------- -----------
Net cash provided by operating activities ....................... 838,771 1,110,622
----------- -----------
Cash flows from investing activities:
Proceeds from sales of equipment ................................... 1,687,085 5,451,664
Investment in unconsolidated joint ventures .......................... (2,250,000) (37,431)
Sale of investment in unconsolidated joint ventures .................. 2,362,500 --
----------- -----------
Net cash provided by investing activities ........................ 1,799,585 5,414,233
----------- -----------
</TABLE>
(continued on next page)
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows (Continued)
For the Nine Months Ended September 30,
<TABLE>
2000 1999
---- ----
Cash flows from financing activities:
<S> <C> <C>
Cash distributions to partners ..................... (3,081,221) (3,089,477)
Principal payments on non-recourse secured financing (103,145) (677,438)
Proceeds from notes payable non-recourse debt ...... 11,752,147 --
Principal payments on notes payable - non-recourse . (9,582,906) --
Redemption of limited partnership units` ........... (7,832) (37,484)
------------ ------------
Net cash used in financing activities ............ (1,022,957) (3,804,399)
------------ ------------
Net increase in cash ................................. 1,615,399 2,720,456
Cash at beginning of period .......................... 3,991,527 125,260
------------ ------------
Cash at end of period ................................ $ 5,606,926 $ 2,845,716
============ ============
</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 nine months ended September 30, 2000 and 1999, non-cash activities
included the following:
2000 1999
---- ----
Principal and interest on direct finance
receivables paid directly to
lenders by lessees $ 3,488,216 $ 3,882,631
Rental income assigned operating lease receivable 1,848,000 1,845,000
Principal and interest on non-recourse
financing paid directly to lenders by lessees (5,336,216) (5,727,631)
----------- -----------
$ - $ -
=========== ===========
Interest expense of $1,273,234 and $1,244,203 for the nine months ended
September 30, 2000 and 1999 consisted of: interest expense on non-recourse
financing accrued or paid directly to lenders by lessees of $1,270,535 and
$1,212,612, respectively, and interest expense on non-recourse secured financing
of $2,699 and $31,591, respectively.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
September 30, 2000
(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 1999
Annual Report on Form 10-K. Certain reclassifications were made to the 1999 and
nine months ended September 30, 2000 information presented in the Statements of
Operations in order to conform to the presentation used in the Statement of
Operations for the three months ended September 30, 2000.
2. Related Party Transactions
Fees paid or accrued by the Partnership to the General Partner or its
affiliates for the nine months ended September 30, 2000 and 1999 are as follows:
2000 1999
---- ----
Management fees $345,749 $535,535 Charged to operations
Administrative expense
reimbursements 174,932 273,183 Charged to operations
-------- --------
Total $520,681 $808,718
======== ========
The Partnership has investments in six joint ventures with other
partnerships sponsored by the General Partner. (See Note 3 for information
relating to the joint ventures and Note 4 for information relating to the
acquisition by another partnership sponsored by the General Partner of the
Partnership's interest in a joint venture.)
3. Investment in Joint Ventures
The Partnership and affiliates formed six joint ventures for the purpose
of acquiring and managing various assets.
The joint venture described below is majority owned and is consolidated
with the Partnership.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements (continued)
ICON Cash Flow Partners L.L.C. 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 which was 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." The original lease term
expired in April 1997 and Alaska Airlines, Inc. returned the aircraft. In June
1997 ICON Cash Flow LLC II released the aircraft to Aero Mexico. The new lease
is an operating lease which expires in September 2002.
The five joint ventures described below are less than 50% owned and are
accounted for following the equity method.
ICON Cash Flow Partners L.L.C. I
In September 1994 the Partnership and an affiliate, 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, which was 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. ICON Cash
Flow LLC 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 Partnership's
investment in the joint venture is accounted for under the equity method. The
original lease term expired in April 1997 and Alaska Airlines, Inc. returned the
aircraft. In June 1997 ICON Cash Flow LLC released the aircraft to Aero Mexico.
The new lease is an operating lease which expires in October 2002.
<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 ICON
Cash Flow LLC I as of and for the nine months ended September 30, 2000 is
summarized below:
September 30, 2000
Assets $18,590,325
===========
Liabilities $11,552,625
===========
Equity $ 7,037,700
===========
Partnership's share of equity $ 70,377
===========
Nine Months Ended
September 30, 2000
Net income $ 581,760
============
Partnership's share of net income $ 5,818
============
ICON Receivables 1997-A L.L.C.
In March 1997 the Partnership, ICON Cash Flow Partners, L.P., Series D
("Series D"), and 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 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 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. In September 1997, 1997-A securitized substantially all
of its equipment leases and finance receivables and residuals. 1997-A became the
beneficial owner of a trust. The Partnership accounts for its investment in
1997-A under the equity method of accounting. The Partnership's original
investment was recorded at cost and is adjusted by its share of earnings, losses
and distributions thereafter.
<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 nine months ended September 30, 2000 is summarized
below:
September 30, 2000
Assets $10,906,112
===========
Liabilities $ 8,391,993
===========
Equity $ 2,514,119
===========
Partnership's share of equity $ 819,164
===========
Nine Months Ended
September 30, 2000
Net income/(loss) $ (340,318)
===========
Partnership's share of net income/(loss) $ (105,596)
===========
Distributions $ 450,866
===========
Partnership's share of distributions $ 139,926
===========
1997-A recorded a provision for bad debt of $500,000 during the three month
period ended September 30, 2000.
ICON Receivables 1997-B L.L.C.
In August 1997 the Partnership, Series E and L.P. Seven formed ICON
Receivables 1997-B L.L.C. ("1997-B"), for the purpose of originating leases and
securitizing its portfolio. The Partnership, Series E and L.P. Seven contributed
cash and received an 8.33%, 75% and 16.67% interest, respectively, in 1997-B.
The Partnership's cash contributions amounted to $250,000 in 1997 and $163,978
in 1998 and $30,260 in 1999. In order to fund the acquisition of leases, 1997-B
obtained a warehouse borrowing facility from Prudential Securities Credit
Corporation (the "1997-B Warehouse Facility"). In October 1998, 1997-B completed
an equipment securitization. The net proceeds from the securitization of these
assets were used to pay-off the remaining 1997-B Warehouse Facility balance and
any remaining proceeds were distributed to the 1997-B members in accordance with
their membership interests. The Partnership accounts for its investment in
1997-B under the equity method of accounting. The Partnership's original
investment was recorded at cost and is adjusted by its share of earnings, losses
and distributions thereafter.
<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-B as of and for the nine months ended September 30, 2000 is summarized
below:
September 30, 2000
Assets $ 21,338,478
============
Liabilities $ 18,843,767
============
Equity $ 2,494,711
============
Partnership's share of equity $ 207,809
============
Nine Months Ended
September 30, 2000
Net income $ 659,027
============
Partnership's share of net income $ 54,897
============
Distributions $ 148,578
============
Partnership's share of distributions $ 12,377
============
ICON Boardman Funding L.L.C.
In December 1998 the Partnership and three affiliates, Series C, L.P. Seven
and ICON Income Fund Eight A L.P. ("Eight A") formed ICON Boardman Funding
L.L.C. ("ICON BF"), for the purpose of acquiring a lease with Portland General
Electric. The purchase price totaled $27,421,810, and was funded with cash and
non-recourse debt assumed in the purchase price. The Partnership, Series C, L.P.
Seven and Eight A received a .5%, .5%, .5% and 98.5% interest, respectively, in
ICON BF. The Partnership's original investment was recorded at cost of
$56,960 and is adjusted by its share of earnings, losses and distributions,
thereafter. Simultaneously with the acquisition of the Portland General Electric
lease by ICON BF, a portion of the rent receivable in excess of the senior debt
payments was acquired by the Partnership from ICON BF for $3,801,108.
<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 ICON
BF as of and for the nine months ended September 30, 2000 is summarized below:
September 30, 2000
Assets $ 26,055,869
============
Liabilities $ 16,003,804
============
Equity $ 10,052,065
============
Partnership's share of equity $ 48,637
============
Nine Months Ended
September 30, 2000
Net income $ 867,657
============
Partnership's share of net income $ 4,338
============
AIC Trust
During 1999, L.P. Seven, an affiliate of the Partnership, acquired a
portfolio of equipment leases for $6,854,830. Subsequently, L.P. Seven sold
interests in this portfolio at various dates in 1999 to Eight A, an affiliate of
the Partnership, for $3,000,000 and to the Partnership for $1,750,000 at book
value, which approximated fair market value at the dates of sale. L.P. Seven
recognized no gain or loss on the sales of these interests to either Eight A or
to the Partnership.
As a result of the sales of these interests, as of September 30, 2000 the
Partnership and Eight A owned interests aggregating 25.51% and 43.73% in the
lease portfolio with L.P. Seven owning a 30.76% interest at that date. The lease
portfolio is owned and operated as a joint venture ("AIC Trust"). Profits,
losses, excess cash and disposition proceeds are allocated based upon the
Partnerships' percentage ownership interests in the venture during the
respective periods the Partnerships held such interests. The Partnership
accounts for its investment under the equity method of accounting.
<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 the venture as of and for the period of investment through
September 30, 2000 is summarized below:
September 30, 2000
Assets $ 17,681,716
============
Liabilities $ 10,421,507
============
Equity $ 7,260,209
============
Partnership's share of equity $ 1,841,657
============
Net income $ 423,509
============
Partnership's share of income $ 108,037
============
4. Disposition of Investment in Joint Venture
In December 1996, ICON Cash Flow Partners L.P. Seven ("L.P. Seven")
purchased for $12,325,000 a 50% share of an option to acquire the 100% interest
in a drilling rig, currently on lease to Rowan Companies, Inc.
In March 2000, L.P. Seven formed a joint venture for the purpose of owning
the 50% share of the option to acquire the residual interest in the drilling
rig.
L.P. Seven contributed its investment in the option with a book value of
$12,394,328 to the joint venture ("Rowan Joint Venture"). Simultaneously, the
Partnership acquired an interest in this joint venture for $2,250,000. This
transaction was recorded at cost, which approximated fair market value. L.P.
Seven recognized no gain or loss on the sale of this interest to the
Partnership. The Partnership had the right to put its interest in the joint
venture back to L.P. Seven at any time on or after September 15, 2000 for 110%
of the purchase price. L.P. Seven had the right to repurchase the interest in
the joint venture from the Partnership at any time prior to September 15, 2000
for an amount equal to 105% of the Partnership's purchase price, which right it
exercised in the third quarter 2000. As a result of this transaction, the
Partnership recognized income from equity investment in joint ventures of
$112,500.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
September 30, 2000
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, investments in unconsolidated joint ventures and
investments in financings of 39%, 51%, 9% and 1% of total investments at
September 30, 2000, respectively, and 47%, 47%, 5% and 1% of total investments
at September 30, 1999, respectively.
Results of Operations for the Three Months Ended September 30, 2000 and 1999
Revenues for the three months ended September 30, 2000 were $1,790,912
representing an increase of $685,372 from 1999. The increase in revenues was due
primarily to increases in gain on sales of equipment of $470,291 and finance
income of $203,491. These increases were partially offset by a decrease in
income from equity investment in joint ventures of $26,618. The increase in gain
on sales resulted primarily from one large sale transaction completed in 2000
which involved one lessee and generated a gain on sale of approximately
$417,000. No sales activity occurred in the 1999 period. Finance income
increased as a result of a higher level of renewal rent payments being received
in the 2000 period. These renewal rent payments exceeded the remaining residual
values of the underlying leases. The decrease in income from equity investments
in joint ventures resulted primarily from a provision for bad debt of $500,000
being recorded in the third quarter of 2000 by the underlying joint venture,
ICON Receivables 1997-A L.L.C. ("1997-A"), offset in part by the recognition of
$112,500 of income from the disposition in 2000 of the interest in the Rowan
Joint Venture.
Expenses for the three months ended September 30, 2000 were $840,773
representing a decrease of $25,094. The decrease is due primarily to decreases
in general and administrative expenses of $15,410, management fees of $28,486,
amortization of initial direct costs of $28,900 and administrative expense
reimbursement of $19,424. These decreases were the result of a decrease in the
average size of the Partnership's lease investment portfolios from 1999 to 2000.
Net income for the three months ended September 30, 2000 and 1999 was
$950,139 and $239,673, respectively. Net income per weighted average limited
partnership unit outstanding was $2.49 and $.63 for 2000 and 1999, respectively.
Results of Operations for the Nine Months Ended September 30, 2000 and 1999
Revenues for the nine months ended September 30, 2000 were $4,804,926
representing an increase of $807,348 from 1999. The increase in revenues was
primarily due to increases in finance income of $408,358, interest income and
other of $112,731 and gain on sale of equipment of $288,431. These increases
were partially offset by a decrease in income from equity investment in joint
ventures of $5,172. Finance income increased primarily as a result of renewal
rent payments received on certain leases in the second and third quarters of
2000, which were in excess of the remaining residual values of the underlying
leases. The increase in gain on sales of equipment resulted primarily from the
one large sale
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
September 30, 2000
transaction completed in the third quarter of 2000, which generated a gain on
sale of approximately $417,000. Interest income and other increased due to an
increase in the average cash balance from 1999 to 2000. The decrease in income
from equity investment in joint ventures resulted primarily from the third
quarter 2000 provision for bad debt being recorded by 1997-A, offset in part by
the recognition in the third quarter of 2000 of income related to the
disposition of the interest in the Rowan Joint Venture and from the investment
in AIC Trust in which the Partnership invested in the fourth quarter of 1999.
Expenses for the nine months ended September 30, 2000 were $2,580,949
representing a decrease of $308,374. The decrease in expenses was primarily due
to decreases in management fees of $189,786, amortization of initial direct
costs of $107,567 and administrative expense reimbursements of $98,251. These
decreases were partially offset by an increase in general and administrative
expenses of $58,875. The decreases in management fees, amortization of initial
direct costs and administrative fees were a result of the decrease in the
average size of the Partnership's lease investment portfolios from 1999 to 2000.
The increase in general and administrative expenses resulted primarily from an
increase in professional fee levels in the first half of 2000.
Net income for the nine months ended September 30, 2000 and 1999 was
$2,223,977 and $1,108,255, respectively. Net income per weighted limited
partnership unit outstanding was $5.82 and $2.89, respectively.
Liquidity and Capital Resources
The Partnership's primary source of funds for the nine months ended
September 30, 2000 and 1999 was net cash provided by operations of $838,771 and
$1,110,622, respectively and proceeds from the sales of equipment of $1,687,085
and $5,451,664, respectively.
Cash distributions to limited partners for the nine months ended September
30, 2000 and 1999, which were paid monthly, totaled $3,050,402 and $3,058,578,
respectively.
As of September 30, 2000 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 where
it deems it to be prudent while retaining sufficient cash to meet its reserve
requirements and recurring obligations.
<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 September 30, 2000.
<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.
November 10, 2000 /s/ Thomas W. Martin
----------------- -----------------------------------------------------
Date Thomas W. Martin
Executive Vice President
(Principal financial and accounting officer of
the General Partner of the Registrant)
