SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE OF 1934
For the quarterly period ended June 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE EXCHANGE ACT.
For the transition period from ____________to ____________
Commission File Number: 33-72740-FW
TRIUMPHE LEASING IX L. P.
(Exact name of small business issuer
as specified in its charter)
Illinois 36-3921954
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
630 Dundee Road, Suite 345, Northbrook, Illinois 60062
(Address of principal executive offices)
847-509-1500
(Issuer's telephone number, including area code)
_______________________________________________________
(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer: (1) filed all reports required to
be filed by Sections 13 or 15(d) of the Exchange Act during
the past 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 1 of 15
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,012,382 $ 399,800
Net investment in direct
financing leases 370,166 297,935
Prepaid expenses - 3,177
--------- ---------
TOTAL CURRENT ASSETS 1,382,548 700,912
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES
less accumulated depreciation of
$1,695,725 and $1,170,850 2,252,573 2,326,293
--------- ---------
OTHER:
Net investment in direct
financing leases 689,535 925,575
Deferred organization costs,
less accumulated amortization
of $12,500 and $10,000 12,500 15,000
--------- ---------
TOTAL OTHER ASSETS 702,035 940,575
--------- ---------
$ 4,337,156 $ 3,967,780
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 15
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 56,457 $ 352,120
Current maturities of long-
term debt 1,296,425 1,315,720
Other liabilities 25,963 2,424
--------- ---------
TOTAL CURRENT LIABILITES 1,378,845 1,399,080
--------- ---------
LONG TERM DEBT,
less current maturities 1,523,605 1,442,763
--------- ---------
TOTAL LIABILITIES 2,902,450 2,841,843
--------- ---------
PARTNERS' EQUITY:
General Partners 14,731 11,560
Limited Partners 1,419,975 1,114,377
--------- ---------
TOTAL PARTNERS' EQUITY 1,434,706 1,125,937
--------- ---------
$ 4,337,156 $ 3,967,780
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 15
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<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Six Months Six Months
Ended Ended
June 30, 1996 June 30, 1995
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 760,768 $ 749,478
Interest 9,938 -
---------- ----------
TOTAL REVENUES 770,706 749,478
---------- ----------
OPERATING EXPENSES:
Interest 124,852 170,214
Depreciation & Amortization 527,375 440,606
Remarketing Commissions Paid
to Outside Lease Brokers 100,021 -
Administrative 62,179 48,789
---------- ----------
TOTAL OPERATING EXPENSES 814,427 659,609
---------- ----------
NET INCOME (LOSS) $ (43,721) $ 89,869
========== ==========
NET (LOSS) ALLOCATED TO
General partners (437) 899
Limited partners (43,284) 88,970
---------- ----------
$ (43,721) $ 89,869
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners .5961 .3638
Limited Partners 59.0257 36.0170
(LOSS) PER WEIGHTED AVERAGE UNIT:
General Partners $(733) $2,470
Limited Partners $(733) $2,470
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 15
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<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 1996 June 30, 1995
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 373,379 $ 350,919
Interest 7,907 -
---------- ----------
TOTAL REVENUES 381,286 350,919
---------- ----------
OPERATING EXPENSES:
Interest 57,856 70,877
Depreciation & Amortization 265,772 220,302
Remarketing Commissions Paid
to Outside Lease Brokers 31,473 -
Administrative 22,420 16,229
---------- ----------
TOTAL OPERATING EXPENSES 377,521 307,408
---------- ----------
NET INCOME $ 3,765 $ 43,511
========== ==========
NET INCOME ALLOCATED TO
General partners 38 435
Limited partners 3,727 43,076
---------- ----------
$ 3,765 $ 43,511
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners .5961 .2264
Limited Partners 59.0257 22.4154
INCOME PER WEIGHTED AVERAGE UNIT:
General Partners $63 $1,921
Limited Partners $63 $1,921
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 15
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<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENT OF PARTNERS' EQUITY
Six Months Ended June 30, 1996
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 1,125,937 $ 11,560 $ 1,114,377
CAPITAL CONTRIBUTIONS 501,220 5,095 496,125
NET LOSS (43,721) (437) (43,284)
OFFERING COSTS (67,442) (674) (66,768)
DISTRIBUTIONS (81,288) (813) (80,475)
---------- -------- ----------
PARTNERS' EQUITY
End of period $ 1,434,706 $ 14,731 $ 1,419,975
========== ======== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 15
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<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Six Months Six Months
Ended Ended
June 30, 1996 June 30, 1995
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ (43,721) $ 89,869
Adjustments to reconcile
net loss to net cash provided
by operating activities:
Depreciation & Amortization 527,375 440,606
Amortization of unearned income (72,938) (116,270)
Changes in assets and liabilities:
Increase in prepaid expense 3,177 2,932
Increase in accounts payable (24,479) 51,006
(Decrease) in other liabilities 23,539 8,260
----------- -----------
Net cash provided by
operating activities 412,953 476,403
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received
under direct financing leases 220,071 348,069
Purchase of computer equipment
on operating leases (434,479) (2,023,950)
Purchase of direct financing leases - (1,325,977)
----------- -----------
Net cash provided by
investing activities (214,408) (3,001,858)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 501,220 232,878
Distributions to partners (81,288) (36,482)
Proceeds from issuance of
nonrecourse debt 1,742,100 2,983,612
Principal payments of
nonrecourse debt (1,680,553) (769,079)
Offering costs paid (67,442) (30,847)
----------- -----------
Net cash (used in)
financing activities 414,037 2,380,082
----------- -----------
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 15
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<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF CASH FLOWS - CONTINUED
<CAPTION>
Six Months Six Months
Ended Ended
June 30, 1996 June 30, 1995
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
NET INCREASE IN CASH AND EQUIVALENTS: $ 612,582 $ (145,373)
CASH AND EQUIVALENTS,
at the beginning of the period 399,800 185,925
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 1,012,382 $ 40,552
========== ==========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 124,852 $ 170,214
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 8 of 15
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<TABLE>
TRIUMPHE LEASING IX L. P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 1996 June 30, 1995
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 3,765 $ 43,511
Adjustments to reconcile
net loss to net cash provided
by operating activities:
Depreciation & Amortization 265,772 220,302
Amortization of unearned income (29,295) (37,725)
Changes in assets and liabilities:
Increase (Decrease) in
prepaid expense (15,757) 1,782
Increase in accounts payable 336 19,388
(Decrease) in other liabilities 21,958 3,339
----------- -----------
Net cash provided by
operating activities 246,779 250,597
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received
under direct financing leases 102,198 121,692
Purchase of computer equipment
on operating leases - (404,174)
----------- -----------
Net cash provided by (used in)
investing activities 102,198 (282,482)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 191,975 72,378
Distributions to partners (43,286) (20,610)
Proceeds from issuance of
nonrecourse debt 62,945 337,575
Principal payments of
nonrecourse debt (385,546) (342,270)
Offering costs paid (25,962) (10,099)
----------- -----------
Net cash provided by (used in)
financing activities (199,874) 36,974
----------- -----------
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 9 of 15
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<TABLE>
TRIUMPHE LEASING IX L. P.
STATEMENTS OF CASH FLOWS - CONTINUED
Three Months Three Months
Ended Ended
June 30, 1996 June 30, 1995
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
NET INCREASE IN CASH AND EQUIVALENTS: $ 149,102 $ 5,089
CASH AND EQUIVALENTS,
at the beginning of the period 863,279 35,463
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 1,012,382 $ 40,552
=========== ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 57,856 $ 70,877
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 10 of 15
<PAGE>
TRIUMPHE LEASING IX L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at June 30, 1996
and each of the three and six months ended June 30, 1996, and
June 30, 1995, is unaudited, and in the opinion of the
partnership, reflects all adjustments (which include only normal
recurring adjustments) necessary for the fair presentation of the
financial position as of that date and the results of operation
for those periods.
The results for interim periods are not necessarily
indicative of trends or of results to be expected for a full
year.
NOTE 2 - ORGANIZATION
The partnership was formed on November 30, 1993, under the
Revised Uniform Limited Partnership Act of the State of Illinois.
The partnership's business is to acquire, own, lease, maintain,
manage and sell equipment. The quarter ended June 30, 1996 was
the tenth quarter of operations.
NOTE 3 - PREPAID EXPENSES
The prepaid syndication and organization costs are costs that
are attributable to the formation and organization of the
partnership. These costs are utlimately expected to be
approximately $150,000. The portion of these costs which are
attributable to organization costs will be amortized using the
straight-line method over a sixty-month period.
NOTE 4 - DESCRIPTION OF LEASING ARRANGEMENTS
The partnership's leasing operations consist principally of
leased equipment which it has acquired from third party
independent lease brokers. It is the partnership's intention to
re-lease such equipment to the existing lessee, lease such
equipment to a new lessee, or to sell the equipment at the end of
each lease. The leases expire over the next three years. The
cost of each lease includes an equity investment plus any non-
recourse loans obtained to finance the purchase.
NOTE 5 - EQUIPMENT
Equipment is recorded at cost. Depreciation is computed
using the double declining balance method over the estimated
useful lives of the assets (five years).
Page 11 of 15
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TRIUMPHE LEASING IX L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - NET INVESTMENT IN LEASES
The following lists the components of the net
investment in leases as of June 30, 1996:
Total minimum lease payments to be received $ 1,303,180
Estimated residual values of leased property 196,261
Less: Unearned income (166,740)
----------
Net investment in leases $ 1,059,701
==========
At June 30, 1996, minimum lease payments for direct
financing and operating leases for each of the three succeeding
calendar years are as follows:
YEAR AMOUNT
1996 $ 1,661,277
1997 1,219,727
1998 915,387
1999 197,027
Page 12 of 15
<PAGE>
PART 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
The partnership commenced the offering of units and began
operations on January 31, 1994. As of June 30, 1996 the
partnership has sold $1,763,765 in Investor Limited Partner
Units. As of June 30, 1996 the partnership had acquired
$5,579,659 of leased equipment with an equity investment of
$814,044 and non-recourse bank borrowing of $4,765,615. As of
June 30, 1996 the partnership had comitted to acquire additional
leased equipment of $1,454,349 with an equity investment of
$227,616 and non-recourse bank borrowing of $1,226,733.
OPERATIONS
Total revenues increased to $770,706 for the first two quarters
of the fiscal year ending December 31, 1996 ("fiscal 1996") from
$749,478 for the first two quarters of the fiscal year ended
December 31, 1995 ("fiscal 1995"). Total revenues consist of
lease rental income, and interest earned on short-term money
market investments. The increase in total revenues was
primarily attributable to additional leased equipment being
purchased, and interest earned on funds held for investment.
Operating expenses increased to $814,427 for the first two
quarters of fiscal 1996 from $659,609 for the first two quarters
of fiscal 1995. Operating expenses consist of interest on
nonrecourse financing of equipment purchased, depreciation on
equipment, amortization of organization expenses, and
administrative expenses. The increase in operating expenses
resulted primarily from an increase in depreciation and
remarketing commissions due to the acquisition of additional
leased equipment.
Results for this period are not indicative of future annual
results because the partnership is still selling units and
investing in equipment. Future results of operations will depend
upon rates of return achieved on equipment acquisitions and rates
achieved on short-term money market investments.
LIQUIDITY AND CAPITAL RESOURCES
Liquid assets of the partnership increase principally from cash
flows from operations. Cash and cash equivalents of the
partnership at June 30, 1996 include undistributed cash
available from operations during the period January 31, 1994 to
June 30, 1996.
The partnership has a program which provides for the temporary
investment of cash in various short-term money market instruments
pending disbursement for operations or distributions to partners.
The partnership generally financed the purchase of equipment by
the use of loans in an amount in excess of 85% of the purchase
price thereof. All of the loans incurred were non-recourse to
the partnership and were or will be fully amortized by the
monthly rental payments due to the partnership under related
leases.
The partnership's current cash and working capital position are
sufficient to meet the partnership's current and long-term
liquidity requirements without additional financing.
Notwithstanding the foregoing, in the event that the partnership
sells additional units pursuant to this offering, there is no
assurance that the partnership will be able to obtain sufficient
debt financing to make equipment investments with the degree of
leverage that it has employed to date.
The partnership maintains, to the extent practicable, a working
capital and contingency reserve in an amount not to exceed 1% of
the gross proceeds from the offering of Units, subject to
business and distribution requirements. Such amount, together
with any amount reserved from operations, will be available to
meet working capital requirements and to provide for
contingencies.
Page 13 of 15
<PAGE>
TRIUMPHE LEASING IX L.P.
PART 2 - OTHER INFORMATION
NONE
Page 14 of 15
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act,
the Registrant has caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
TRIUMPHE LEASING IX L.P.
By: TL GENERAL IX CORP.,
Its: General Partner
Date August 13, 1996 By: /s/ Gerald A. Horwitz
------------------------------
Gerald A. Horwitz, President
of the Corprate General Partner
(Principal Executive Officer)
Date August 13, 1996 By: /s/ Jerry L. Schwartz
------------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer of the
Corporate General Partner
(Principal Financial and
Accounting Officer)
Date August 13, 1996 By: /s/ Gerald A. Horwitz
-------------------------------
Gerald A. Horwitz
Its: General Partner
Page 15 of 15
