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, 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
---------------------------------------------------------
ICON Cash Flow Partners L.P. Six
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3723089
--------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
111 Church Street, White Plains, New York 10601-1505
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(914) 993-1700
--------------------------------------------------------------------------------
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,
2000 1999
Assets
<S> <C> <C>
Cash $ 3,176,311 $ 3,991,527
--------------- --------------
Investment in finance leases
Minimum rents receivable 9,554,261 11,854,142
Estimated unguaranteed residual values 5,423,849 6,186,947
Initial direct costs 77,867 104,184
Unearned income (1,887,978) (2,586,265)
Allowance for doubtful accounts (267,306) (266,670)
--------------- --------------
12,900,693 15,292,338
Investment in operating leases
Equipment, at cost 19,100,646 19,100,646
Accumulated depreciation (3,921,445) (3,592,403)
--------------- --------------
15,179,201 15,508,243
Investments in unconsolidated joint ventures 5,365,444 3,072,508
--------------- --------------
Investment in financings
Receivables due in installments 45,119 134,766
Initial direct costs 13 334
Unearned income (1,161) (6,008)
Allowance for doubtful accounts (4,018) (4,018)
---------------- --------------
39,953 125,074
--------------- --------------
Other assets 1,006,291 627,003
--------------- --------------
Total assets $ 37,667,893 $ 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>
June 30, December 31,
2000 1999
Liabilities and Partners' Equity
<S> <C> <C>
Notes payable - non-recourse $ 20,144,500 $ 20,677,786
Note payable - non-recourse - secured financing - 103,145
Security deposits and deferred credits 3,036,210 2,700,125
Accounts payable - other 260,268 125,530
Minority interest in consolidated joint venture 64,159 59,061
--------------- --------------
23,505,137 23,665,647
Commitments and Contingencies
Partners' equity (deficiency)
General Partner (186,099) (178,293)
Limited partners (378,288.47 and 378,488.47 units outstanding,
$100 per unit original issue price in 2000 and 1999, respectively) 14,348,855 15,129,339
--------------- --------------
Total partners' equity 14,162,756 14,951,046
--------------- --------------
Total liabilities and partners' equity $ 37,667,893 $ 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 Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
---- ---- ----- ----
Revenues
<S> <C> <C> <C> <C>
Rental income $ 615,000 $ 615,000 $ 1,231,500 $ 1,230,000
Finance income 981,390 455,563 1,349,794 1,171,704
Net gain on sales of equipment 83,170 102,812 165,770 320,853
Income from equity investment
in joint ventures 89,589 26,039 179,860 158,414
Interest income and other 48,868 4,154 87,090 11,067
--------------- ------------- ------------- -------------
Total revenues 1,818,017 1,203,568 3,014,014 2,892,038
--------------- ------------- ------------- -------------
Expenses
Interest 412,535 410,673 831,553 870,926
General and administrative 134,164 72,641 208,343 134,057
Depreciation 156,300 156,299 312,600 312,599
Management fees- General Partner 109,943 233,589 235,649 396,949
Minority interest in joint ventures 2,548 2,290 5,098 4,498
Amortization of initial direct costs 11,705 51,855 26,634 105,301
Administrative expense reimbursements
- General Partner 55,214 112,913 120,299 199,126
--------------- ------------- ------------- -------------
Total expenses 882,409 1,040,260 1,740,176 2,023,456
--------------- ------------- ------------- -------------
Net income $ 935,608 $ 163,308 $ 1,273,838 $ 868,582
=============== ============= ============= =============
Net income allocable to:
Limited partners $ 926,252 $ 161,675 $ 1,261,100 $ 859,896
General Partner 9,356 1,633 12,738 8,686
--------------- ------------- ------------- -------------
$ 935,608 $ 163,308 $ 1,273,838 $ 868,582
=============== ============= ============= =============
Weighted average number of limited
partnership units outstanding 378,288 379,353 378,338 379,353
=============== ============= ============= =============
Net income per weighted average
limited partnership unit $ 2.45 $ .43 $ 3.33 $ 2.27
=============== ============= ============= =============
</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, 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 $ 2.04 $ 3.33 (2,033,752) (20,544) (2,054,296)
Limited partnership units
Redeemed (200 units) (7,832) - (7,832)
Net income 1,261,100 12,738 1,273,838
--------------- ------------- ---------------
Balance at
June 30, 2000 $ 14,348,855 $ (186,099) $ 14,162,756
=============== ============= ===============
</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>
2000 1999
---- ----
Cash flows from operating activities:
<S> <C> <C>
Net income $ 1,273,838 $ 868,582
---------------- ---------------
Adjustments to reconcile net income to
net cash provided by operating activities:
Rental income - paid directly to lenders by lessees (1,231,500) (1,230,000)
Interest expense on non-recourse financing paid directly by lessees 828,854 847,642
Finance income portion of receivables paid directly
to lenders by lessees (698,074) (930,622)
Amortization of initial direct costs 26,634 105,301
Income from investments in unconsolidated joint ventures (179,860) (158,414)
Depreciation 312,600 312,599
Gain on sales of equipment (165,770) (320,853)
Change in operating assets and liabilities:
Other assets (379,288) -
Collection of principal - non-financed receivables 446,223 1,555,605
Distributions received from unconsolidated joint ventures 136,926 432,363
Minority interest in consolidated joint venture 5,098 4,499
Security deposits and deferred credits 336,085 (370,959)
Accounts payable - other 134,738 -
Accounts payable to General Partner and affiliates - (462,243)
Other (301,319) 78,872
----------------- ---------------
Total adjustments (728,653) (136,210)
----------------- ---------------
Net cash provided by operating activities 545,185 732,372
---------------- ---------------
Cash flows from investing activities:
Proceeds from sales of equipment 885,631 5,004,214
Investment in unconsolidated joint ventures (2,250,000) (33,960)
----------------- ----------------
Net cash provided (used in ) by investing activities (1,364,369) 4,970,254
----------------- ---------------
</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 Six Months Ended June 30,
<TABLE>
2000 1999
---- ----
Cash flows from financing activities:
<S> <C> <C>
Cash distributions to partners (2,054,296) (2,060,267)
Principal payments on non-recourse secured financing (103,145) (518,753)
Proceeds from non-recourse debt 11,752,147 0
Principal payments on notes payable - non-recourse (9,582,906) 0
Redemption of limited partnership units` (7,832) 0
---------------- ---------------
Net cash provided by (used in) financing activities 3,968 (2,579,020)
---------------- ---------------
Net (decrease) increase in cash (815,216) 3,123,606
Cash at beginning of period 3,991,527 125,260
---------------- ---------------
Cash at end of period $ 3,176,311 $ 3,248,866
================ ===============
</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, 2000 and 1999, non-cash activities included
the following:
<TABLE>
2000 1999
---- ----
Principal and interest on direct finance
receivables paid directly to
<S> <C> <C>
lenders by lessees $ 2,299,881 $ 2,631,252
Rental income assigned operating lease receivable 1,231,500 1,230,000
Principal and interest on non-recourse
financing paid directly to lenders by lessees (3,531,381) (3,861,252)
-------------- --------------
$ - $ -
============== ==============
</TABLE>
Interest expense of $831,553 and $870,926 for the six months ended June
30, 2000 and 1999 consisted of: interest expense on non-recourse financing
accrued or paid directly to lenders by lessees of $828,854 and $846,642,
respectively, and interest expense on non-recourse secured financing of $2,699
and $24,284, respectively.
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
June 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.
2. Related Party Transactions
Fees paid or accrued by the Partnership to the General Partner or its
affiliates for the six months ended June 30, 2000 and 1999 are as follows:
2000 1999
---- ----
Management fees $ 235,649 $ 396,949 Charged to operations
Administrative expense
reimbursements 120,299 199,126 Charged to operations
-------------- -------------
Total $ 355,948 $ 596,075
============== =============
The Partnership has investments in seven joint ventures with other
Partnerships sponsored by the General Partner. (See Note 3 for additional
information relating to the joint ventures.)
3. Investment in Joint Ventures
The Partnership and affiliates formed seven 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 six joint ventures described below are less than 50% owned and are
accounted for following the equity method.
Rowan 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. As a result, at June 30, 2000, the Partnership and L.P. Seven owned
interests aggregating 18.15% and 81.85% in the venture, respectively. Profits,
losses and cash distributions will be allocated based upon the Partnerships'
ownership interests. The Partnership has 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 has 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.
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. ("ICON Cash Flow LLC"), 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
<PAGE>
ICON Cash Flow Partners L. P. Six
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements (continued)
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.
Information as to the financial position and results of operations of ICON
Cash Flow LLC as of and for the six months ended June 30, 2000 is summarized
below:
June 30, 2000
Assets $ 16,431,356
===============
Liabilities $ 9,470,874
===============
Equity $ 6,960,482
===============
Partnership's share of equity $ 69,604
===============
Six Months Ended
June 30, 2000
Net income $ 490,352
===============
Partnership's share of net income $ 4,903
===============
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 six months ended June 30, 2000 is summarized below:
June 30, 2000
Assets $ 13,201,640
===============
Liabilities $ 10,160,355
===============
Equity $ 3,041,285
===============
Partnership's share of equity $ 982,770
===============
Six Months Ended
June 30, 2000
Net income $ 186,848
===============
Partnership's share of net income $ 58,010
===============
Distributions $ 450,866
===============
Partnership's share of distributions $ 136,926
===============
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 six months ended June 30, 2000 is summarized below:
June 30, 2000
Assets $ 24,484,347
===============
Liabilities $ 22,186,671
===============
Equity $ 2,297,676
===============
Partnership's share of equity $ 203,773
===============
Six Months Ended
June 30, 2000
Net income $ 461,992
===============
Partnership's share of net income $ 38,484
===============
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 six months ended June 30, 2000 is summarized below:
June 30, 2000
Assets $ 25,426,982
===============
Liabilities $ 16,006,365
===============
Equity $ 9,420,617
===============
Partnership's share of equity $ 47,103
===============
Six Months Ended
June 30, 2000
Net income $ 560,899
===============
Partnership's share of net income $ 2,805
===============
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 December 31, 1999 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 June
30, 2000 is summarized below:
June 30, 2000
Assets $ 18,050,244
==============
Liabilities $ 10,910,913
==============
Equity $ 7,139,331
==============
Partnership's share of equity $ 1,812,194
==============
Net income $ 302,631
==============
Partnership's share of income $ 75,658
==============
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
June 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 38%, 45%, 16% and 1% of total investments at June
30, 2000, respectively, and 45%, 45%, 9% and 1% of total investments at June 30,
1999, respectively.
Results of Operations for the Three Months Ended June 30, 2000 and 1999
Revenues for the three months ended June 30, 2000 were $ 1,818,017
representing an increase of $614,449 from 1999. The increase in revenues was due
to an increase in finance income of $525,827, an increase in interest income and
other of $44,717, and an increase in income from equity investment in joint
ventures of $63,550. These increases were partially offset by a decrease in gain
on sales of equipment of $19,642. The increase in finance income was due
primarily to renewal rent payments received on certain leases which were in
excess of the remaining residual values. The increase in interest income and
other was due to an increase in the average cash balance from 1999 to 2000. The
increase in income from equity investment in joint ventures resulted from the
partnership's income realized in 2000 from its investment in the AIC Trust which
was formed in the second half of 1999. The decrease in gain on sales of
equipment resulted from a decrease in the number of leases maturing where the
underlying equipment was sold for amounts which exceeded remaining book value.
Expenses for the three months ended June 30, 2000 were $882,409
representing a decrease of $157,851. The decrease in expenses was due primarily
to a decrease in management fees of $123,646, a decrease in administrative
expense reimbursements of $57,699, and a decrease in amortization of initial
direct costs of $40,150. These decreases were partially offset by an increase in
general and administrative expenses of $61,523. The decreases in amortization of
initial direct costs, management fees, administrative expense reimbursements
were a result of a decrease in the average size of the finance lease portfolio
from 1999 to 2000. The increase in general and administrative expenses resulted
primarily from an increase in professional fees.
Net income for the three months ended June 30, 2000 and 1999 was $935,608
and $163,308, respectively. The net income per weighted average limited
partnership unit outstanding was $2.45 and $.43 for 2000 and 1999, respectively.
Results of Operations for the six months ended June 30, 2000 and 1999
Revenues for the six months ended June 30, 2000 were $3,014,014,
representing an increase of $121,976. The increase in revenues was due primarily
to an increase in finance income of $178,090, an increase in interest income and
other of $76,023, and an increase in income from equity investment in joint
ventures of $21,446. These increases were partially offset by a decrease in gain
on sales of equipment of $155,083. The increase in finance income was due
primarily to renewal rent payments received on certain leases in the second
quarter of 2000 which were in excess of the remaining residual values. The
increase in interest income and other was due to an increase in the average cash
balance from 1999 to 2000. The increases in income from equity investment in
joint ventures resulted from the partnership's income realized in 2000 from its
investment in the AIC Trust which was formed in the second half of 1999. The
decrease in gain on sales of equipment resulted from a decrease in the number of
leases maturing where the underlying equipment was sold for amounts which
exceeded remaining book value.
<PAGE>
ICON Cash Flow Partners L.P. Six
(A Delaware Limited Partnership)
June 30, 2000
Expenses for the six months ended June 30, 2000 were $1,740,176,
representing a decrease of $283,280. The decrease in expenses was primarily due
to a decrease in management fees of $161,300, a decrease in amortization of
initial direct costs of $78,667, and a decrease in administrative fees of
$78,827. These decreases were partially offset by an increase in general and
administrative expenses of $74,286. The decreases in management fees,
amortization of initial direct costs, and administrative fees were a result of a
decrease in the average size of the lease portfolios from 1999 to 2000. The
increase in general and administrative expenses resulted primarily from an
increase in professional fees.
Net income for the six months ended June 30, 2000 and 1999 was $1,273,838
and $868,582, respectively.
Net income per weighted average limited partnership unit outstanding was $3.33
and $2.27 for 2000 and 1999, respectively.
Liquidity and Capital Resources
The Partnership's primary sources of funds for the six months ended June
30, 2000 and 1999 were proceeds from sales of equipment $885,631 and $5,004,214,
respectively, and cash provided by operations of $545,185 and $732,372,
respectively. These funds generated and existing cash reserves were used to fund
cash distributions, to make payments on borrowings and to fund an investment in
a joint venture in 2000. The Partnership intends to continue to fund cash
distributions utilizing cash provided by operations and proceeds from sales of
equipment.
Cash distributions to limited partners for the six months ended June 30,
2000 and 1999, which were paid monthly, totaled $2,033,752 and $2,039,664,
respectively.
As of June 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 June 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.
August 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)
