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 September 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 13
<PAGE>
<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 930,818 $ 399,800
Net investment in direct
financing leases 367,883 297,935
Prepaid expenses - 3,177
--------- ---------
TOTAL CURRENT ASSETS 1,298,701 700,912
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES
less accumulated depreciation of
$2,116,681 and $1,170,850 2,904,504 2,326,293
--------- ---------
OTHER:
Net investment in direct
financing leases 628,272 925,575
Deferred organization costs,
less accumulated amortization
of $13,750 and $10,000 11,250 15,000
--------- ---------
TOTAL OTHER ASSETS 639,522 940,575
--------- ---------
$ 4,842,727 $ 3,967,780
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 13
<PAGE>
<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 75,804 $ 352,120
Current maturities of long-
term debt 1,496,921 1,315,720
Other liabilities 35,318 2,424
--------- ---------
TOTAL CURRENT LIABILITES 1,608,043 1,399,080
--------- ---------
LONG TERM DEBT,
less current maturities 1,785,243 1,442,763
--------- ---------
TOTAL LIABILITIES 3,393,286 2,841,843
--------- ---------
PARTNERS' EQUITY:
General Partners 14,939 11,560
Limited Partners 1,434,502 1,114,377
--------- ---------
TOTAL PARTNERS' EQUITY 1,449,441 1,125,937
--------- ---------
$ 4,842,727 $ 3,967,780
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1996 September 30, 1995
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 1,251,186 $ 1,097,221
Interest 19,030 -
---------- ----------
TOTAL REVENUES 1,270,216 1,097,221
---------- ----------
OPERATING EXPENSES:
Interest 193,217 236,276
Depreciation & Amortization 949,581 660,908
Remarketing Commissions Paid
to Outside Lease Brokers 131,716 -
Administrative 89,339 62,972
---------- ----------
TOTAL OPERATING EXPENSES 1,363,853 960,156
---------- ----------
NET (LOSS) INCOME $ (93,637) $ 137,065
========== ==========
NET (LOSS) INCOME ALLOCATED TO
General partners (936) 1,371
Limited partners (92,701) 135,694
---------- ----------
$ (93,637) $ 137,065
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners .6386 .4032
Limited Partners 63.2180 39.8247
(LOSS) INCOME PER WEIGHTED AVERAGE UNIT:
General Partners $(1,466) $3,407
Limited Partners $(1,466) $3,407
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1996 September 30, 1995
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 482,718 $ 347,742
Interest 9,092 -
---------- ----------
TOTAL REVENUES 491,810 347,742
---------- ----------
OPERATING EXPENSES:
Interest 68,364 66,062
Depreciation & Amortization 422,206 220,302
Remarketing Commissions Paid
to Outside Lease Brokers 31,695 -
Administrative 27,161 14,182
---------- ----------
TOTAL OPERATING EXPENSES 549,426 300,546
---------- ----------
NET (LOSS) INCOME $ (57,616) $ 47,196
========== ==========
NET (LOSS) INCOME ALLOCATED TO
General partners (576) 472
Limited partners (57,040) 46,724
---------- ----------
$ (57,616) $ 47,196
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners .6386 .0388
Limited Partners 63.2180 3.8410
(LOSS) INCOME PER WEIGHTED AVERAGE UNIT:
General Partners $(902) $12,165
Limited Partners $(902) $12,165
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENT OF PARTNERS' EQUITY
Nine Months Ended September 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 632,443 6,468 625,975
NET LOSS (93,637) (936) (92,701)
OFFERING COSTS (81,746) (817) (80,929)
DISTRIBUTIONS (133,556) (1,336) (132,220)
---------- -------- ----------
PARTNERS' EQUITY
End of period $ 1,449,441 $ 14,939 $ 1,434,502
========== ======== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Nine Months Nine Months
Ended Ended
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (93,637) $ 137,065
Adjustments to reconcile
net (loss) income to net cash
provided by operating activities:
Depreciation & amortization 949,581 660,908
Amortization of unearned income (100,869) (150,819)
Changes in assets and liabilities:
Decrease (Increase) in
prepaid expenses 3,177 (4,218)
(Decrease) Increase in
accounts payable (5,132) 78,887
Increase in other liabilities 32,894 2,220
----------- -----------
Net cash provided by
operating activities 786,014 724,043
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received
under direct financing leases 315,578 464,203
Purchase of computer equipment
on operating leases (1,507,366) (2,023,950)
Purchase of direct financing leases (4,029) (1,325,975)
----------- -----------
Net cash used in
investing activities (1,195,817) (2,885,722)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 632,443 486,245
Distributions to partners (133,556) (59,456)
Proceeds from issuance of
nonrecourse debt 2,636,136 2,983,612
Principal payments of
nonrecourse debt (2,112,456) (1,115,529)
Offering costs paid (81,746) (63,323)
----------- -----------
Net cash provided by
financing activities 940,821 2,231,549
----------- -----------
NET INCREASE IN CASH AND EQUIVALENTS: $ 531,018 $ 69,870
CASH AND EQUIVALENTS,
at the beginning of the period 399,800 185,925
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 930,818 $ 255,795
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 193,217 $ 236,276
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 13
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L. P.
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (57,616) $ 47,196
Adjustments to reconcile
net (loss) income to net cash
provided by operating activities:
Depreciation & amortization 422,206 220,304
Amortization of unearned income (27,931) (34,549)
Changes in assets and liabilities:
Increase in prepaid expense - (7,150)
Increase in accounts payable 19,347 27,881
Increase (Decrease) in
other liabilities 9,355 (6,040)
----------- -----------
Net cash provided by
operating activities 365,361 247,642
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received
under direct financing leases 95,506 116,134
Purchase of computer equipment
on operating leases (1,072,887) -
Purchase of direct financing leases (4,029) -
----------- -----------
Net cash provided by (used in)
investing activities (981,410) 116,134
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 131,223 253,367
Distributions to partners (52,268) (22,974)
Proceeds from issuance of
nonrecourse debt 894,036 -
Principal payments of
nonrecourse debt (424,202) (346,450)
Offering costs paid (14,304) (32,476)
----------- -----------
Net cash provided by (used in)
financing activities 534,485 (148,533)
----------- -----------
NET INCREASE (DECREASE) IN
CASH AND EQUIVALENTS: $ (81,564) $ 215,243
CASH AND EQUIVALENTS,
at the beginning of the period 1,012,382 40,552
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 930,818 $ 255,795
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 68,364 $ 66,062
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 8 of 13
<PAGE>
TRIUMPHE LEASING IX L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at September 30,
1996 and each of the three and nine months ended September 30,
1996, and September 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 September 30, 1996
was the eleventh 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
nonrecourse 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 9 of 13
<PAGE>
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 September 30, 1996:
Total minimum lease payments to be received $ 938,133
Estimated residual values of leased property 198,261
Less: Unearned income (140,239)
----------
Net investment in leases $ 996,155
==========
At September 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 $ 1,927,210
1997 1,555,550
1998 1,250,852
1999 315,054
Page 10 of 13
<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 $1,893,615 in Investor Limited Partner
Units. As of September 30, 1996 the partnership had acquired
$6,624,576 of leased equipment with an equity investment of
$964,924 and nonrecourse bank borrowing of $5,659,652. As of
September 30, 1996 the partnership had comitted to acquire
additional leased equipment of $487,395 with an equity
investment of $154,923 and nonrecourse bank borrowing of
$332,472.
OPERATIONS
Total revenues increased to $1,270,216 for the first three
quarters of the fiscal year ending December 31, 1996 ("fiscal
1996") from $1,097,221 for the first three quarters of the fiscal
year ended December 31, 1995 ("fiscal 1995"). Total revenues
consist oflease 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 $1,363,853 for the first three
quarters of fiscal 1996 from $960,156 for the first three
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 September 30, 1996 include undistributed cash
available from operations during the period January 31, 1994 to
September 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 nonrecourse 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 11 of 13
<PAGE>
TRIUMPHE LEASING IX L.P.
PART 2 - OTHER INFORMATION
NONE
Page 12 of 13
<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 November 6, 1996 By: /s/ Gerald A. Horwitz
------------------------------
Gerald A. Horwitz, President
of the Corprate General Partner
(Principal Executive Officer)
Date November 6, 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 November 6, 1996 By: /s/ Gerald A. Horwitz
-------------------------------
Gerald A. Horwitz
Its: General Partner
Page 13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Sep-30-1996
<CASH> 930,818
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,298,701
<PP&E> 5,021,185
<DEPRECIATION> 2,116,681
<TOTAL-ASSETS> 4,842,727
<CURRENT-LIABILITIES> 1,608,043
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 4,842,727
<SALES> 0
<TOTAL-REVENUES> 1,270,216
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 193,217
<INCOME-PRETAX> (93,637)
<INCOME-TAX> 0
<INCOME-CONTINUING> (93,637)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
