SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
[ ] 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) (Zip Code)
847-509-1500
(Issuer's telephone number)
(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, 1997 December 31, 1996
------------------ -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 195,885 $ 275,638
Accounts receivable 129,459 39,367
Net investment in direct
financing leases 257,308 346,770
Prepaid expenses 757 -
----------- -----------
TOTAL CURRENT ASSETS 583,409 661,775
----------- -----------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$3,759,342 and $2,596,827 3,988,029 5,774,166
OTHER ASSETS:
Net investment in direct
financing leases 364,220 562,390
Deferred organization costs,
less accumulated amortization
of $18,750 and $15,000 6,250 10,000
----------- -----------
TOTAL OTHER ASSETS 370,470 572,390
----------- -----------
$ 4,941,908 $ 7,008,331
=========== ===========
<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, 1997 December 31, 1996
------------------ -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 127,089 $ 87,858
Current maturities of
long-term debt 2,071,199 2,170,218
Other liabilities 16,288 7,060
----------- -----------
TOTAL CURRENT LIABILITIES 2,214,576 2,265,136
----------- -----------
LONG-TERM DEBT,
less current maturities 1,677,146 3,112,548
----------- -----------
TOTAL LIABILITIES 3,891,722 5,377,684
----------- -----------
PARTNERS' EQUITY:
General Partners 11,054 16,750
Limited Partners 1,039,132 1,613,897
----------- -----------
TOTAL PARTNERS' EQUITY 1,050,186 1,630,647
----------- -----------
$ 4,941,908 $ 7,008,331
=========== ===========
<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, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 1,898,264 $ 1,251,186
Loss on sale of equipment (229,268) -
Interest 4,358 19,030
----------- -----------
TOTAL REVENUES 1,673,354 1,270,216
----------- -----------
OPERATING EXPENSES:
Interest 269,119 193,217
Depreciation & Amortization 1,789,404 949,581
Remarketing Commissions Paid
to Outside Lease Brokers 62,091 131,716
Administrative 104,467 89,339
----------- -----------
TOTAL OPERATING EXPENSES 2,225,081 1,363,853
----------- -----------
NET LOSS $ (551,727) $ (93,637)
=========== ===========
NET LOSS ALLOCATED TO:
General Partners $ (5,517) $ (936)
Limited Partners (546,210) (92,701)
----------- -----------
$ (551,727) $ (93,637)
=========== ===========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.0470 .8455
Limited Partners 103.6548 83.7531
LOSS PER WEIGHTED AVERAGE UNIT:
General Partners $ (5,269) $ (1,107)
Limited Partners $ (5,269) $ (1,107)
<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, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 592,004 $ 482,718
Interest 1,313 9,092
----------- -----------
TOTAL REVENUES 593,317 491,810
----------- -----------
OPERATING EXPENSES:
Interest 83,734 68,364
Depreciation & Amortization 630,847 422,206
Remarketing Commissions Paid
to Outside Lease Brokers - 31,695
Administrative 25,609 27,161
----------- -----------
TOTAL OPERATING EXPENSES 740,190 549,426
----------- -----------
NET LOSS $ (146,873) $ (57,616)
=========== ===========
NET LOSS ALLOCATED TO:
General Partners $ (1,469) $ (576)
Limited Partners (145,404) (57,040)
----------- -----------
$ (146,873) $ (57,616)
=========== ===========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.0721 .9458
Limited Partners 106.1399 93.5947
LOSS PER WEIGHTED AVERAGE UNIT:
General Partners $ (1,370) $ (609)
Limited Partners $ (1,370) $ (609)
<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, 1997
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 1,630,647 $ 16,750 $ 1,613,897
CAPITAL CONTRIBUTIONS 158,140 1,690 156,450
NET LOSS (551,727) (5,517) (546,210)
OFFERING COSTS (3,771) (38) (3,733)
DISTRIBUTIONS (183,103) (1,831) (181,272)
----------- -------- -----------
PARTNERS' EQUITY
End of period $ 1,050,186 $ 11,054 $ 1,039,132
=========== ======== ===========
<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
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (551,727) $ (93,637)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depreciation & amortization 1,789,404 949,581
Amortization of unearned
income (29,399) (100,869)
Loss on sale of equipment 229,268 -
Changes in assets and liabilities:
(Increase) in accounts
receivable (90,092) -
(Increase) Decrease in
prepaid expenses (757) 3,177
Increase (Decrease) in
accounts payable 39,231 (5,132)
Increase in other liabilities 9,228 32,894
---------- ---------
Net cash provided by
operating activities 1,395,156 786,014
---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 279,656 315,578
Purchase of computer equipment
on operating leases (213,630) (1,507,366)
Purchase of direct financing
leases (24,000) (4,029)
Proceeds from sale of
equipment 46,220 -
--------- -----------
Net cash provided by (used
in) investing activities 88,246 (1,195,817)
--------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 158,140 632,443
Distributions to partner (183,103) (133,556)
Proceeds from nonrecourse debt - 2,636,136
Principal payments of
nonrecourse debt (1,534,421) (2,112,456)
Offering costs paid (3,771) (81,746)
----------- -----------
Net cash (used in) provided by
financing activities (1,563,155) 940,821
----------- -----------
NET (DECREASE) INCREASE IN
CASH AND EQUIVALENTS (79,753) 531,018
CASH AND EQUIVALENTS,
at the beginning of the period 275,638 399,800
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 195,885 $ 930,818
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 269,119 $ 193,217
<FN>
See accompanying notes to financial statements (Unaudited)
Page 7 of 13
<PAGE>
TRIUMPHE LEASING IX L.P
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1997 September 30, 1996
------------------ ------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (146,873) $ (57,616)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depreciation & amortization 630,847 422,206
Amortization of unearned income 13,492 (27,931)
Changes in assets and liabilities:
(Increase) in accounts
receivable (129,459) -
Increase in prepaid expense 757 -
Increase in accounts payable 7,879 19,347
(Decrease) Increase in other
liabilities (2,395) 9,355
----------- ----------
Net cash provided by
operating activities 374,248 365,361
----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 78,515 95,506
Purchase of computer equipment on
operating leases (203,630) (1,072,887)
Purchase of direct
financing leases (24,000) (4,029)
----------- ----------
Net cash used in
investing activities (149,115) (981,410)
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions - 131,223
Distributions to partners (64,513) (52,268)
Proceeds from nonrecourse debt - 894,036
Principal payments of
nonrecourse debt (376,231) (424,202)
Offering costs paid (500) (14,304)
---------- ----------
Net cash (used in) provided by
financing activities (441,244) 534,485
---------- ----------
NET DECREASE IN CASH
AND EQUIVALENTS (216,111) (81,564)
CASH AND EQUIVALENTS,
at the beginning of the period 411,996 1,012,382
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 195,885 $ 930,818
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 83,734 $ 68,364
<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,
1997 and the nine and three months ended September 30, 1997, and
September 30, 1996, 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 operations
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, 1997 was the fifteenth quarter of operations of the
partnership and leased equipment was acquired during this period.
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 ultimately 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 will expire over the next five years.
The cost of each lease includes an equity investment plus any
nonrecourse loans obtained to finance the purchase.
NOTE 5 - EQUIPMENT
Computer equipment on operating leases 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 6 - LEASES
The following lists the components of the
net investment in leases as of September 30, 1997:
Total minimum lease payments to be received $ 549,592
Estimated residual values of leased property 157,586
Less: Unearned income (85,650)
---------
Net investment in leases $ 621,528
=========
At September 30, 1997, minimum lease payments for direct
financing and operating leases for each of the four succeeding
calendar years are expected to be received as follows:
YEAR AMOUNT
1997 $ 2,659,031
1998 2,349,999
1999 1,114,833
2000 127,169
Page 10 of 13
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Partnership commenced the offering of units and began
operations on January 31, 1994. As of September 30, 1997 the
partnership had sold $1,893,615 in Investor Limited Partner
Units. As of September 30, 1997 the partnership acquired leased
equipment of $10,707,925 with an equity investment of $1,797,612
and nonrecourse bank borrowing of $8,910,313.
OPERATIONS
Total revenues increased to $1,673,687 for the first three
quarters of the fiscal year ending December 31, 1997 ("fiscal
1997") from $1,270,216 for the first three quarters of the fiscal
year ended December 31, 1996 ("fiscal 1996"). 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.
Operating expenses increased to $2,225,414 for the first three
quarters of fiscal 1997 from $1,363,853 for the first three
quarters of fiscal 1996. Operating expenses consist of interest
on nonrecourse financing of equipment purchased, depreciation of
equipment, amortization of organization expenses, and
administrative expenses. The increase in operating expenses
resulted primarily from an increase in depreciation expense and
interest on non-recourse debt.
The partnership does not plan to invest in additional equipment.
Future results depend on the collection of rents on existing and
extended leases, disposition of equipment from expired leases,
and interest earned on short-term money market investments.
LIQUIDITY AND CAPITAL RESOURCES
Liquid assets of the partnership increase as offering proceeds
are collected and decrease as the partnership makes equipment
investments. Cash and cash equivalents of the partnership at
September 30, 1997 include offering proceeds available for
investment in equipment and undistributed cash earned during the
period from January 31, 1994 to September 30, 1997.
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 short-term 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 II - OTHER INFORMATION
NONE
Page 12 of 13
<PAGE>
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.
TRIUMPHE LEASING IX L.P.
By: TL GENERAL IX CORP.,
Its: General Partner
Date October 31, 1997 By: /s/ Gerald A. Horwitz
------------------
Gerald A. Horwitz, President
(Principal Executive Officer)
Date October 31, 1997 By: /s/ Jerry L. Schwartz
------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer
(Principal Financial and
Accounting Officer)
Date October 31, 1997 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-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Sep-30-1997
<CASH> 195,885
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 583,409
<PP&E> 7,747,371
<DEPRECIATION> 3,759,342
<TOTAL-ASSETS> 4,941,908
<CURRENT-LIABILITIES> 2,214,576
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 4,941,908
<SALES> 0
<TOTAL-REVENUES> 1,673,354
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 269,119
<INCOME-PRETAX> (551,727)
<INCOME-TAX> 0
<INCOME-CONTINUING> (551,727)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
