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 June 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, 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 14
<PAGE>
<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
June 30, 1997 December 31, 1996
------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 411,996 $ 275,638
Accounts Receivable 0 39,367
Net investment in direct
financing leases 265,651 346,770
Prepaid expenses 1,514 -
--------- ---------
TOTAL CURRENT ASSETS 679,161 661,775
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES
less accumulated depreciation of
$3,129,745 and $2,596,827 4,413,997 5,774,166
OTHER ASSETS:
Net investment in direct
financing leases 423,884 562,390
Deferred organization costs,
less accumulated amortization
of $17,500 and $15,000 7,500 10,000
--------- ---------
TOTAL OTHER ASSETS 431,384 572,390
--------- ---------
$ 5,524,542 $ 7,008,331
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 14
<PAGE>
<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
June 30, 1997 December 31, 1996
------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 119,210 $ 87,858
Current maturities of
long-term debt 2,013,070 2,170,218
Other liabilities 18,683 7,060
--------- ---------
TOTAL CURRENT LIABILITIES 2,150,963 2,265,136
--------- ---------
LONG-TERM DEBT,
less current maturities 2,111,506 3,112,548
--------- ---------
TOTAL LIABILITIES 4,262,469 5,377,684
--------- ---------
PARTNERS' EQUITY:
General Partners 13,172 16,750
Limited Partners 1,248,901 1,613,897
--------- ---------
TOTAL PARTNERS' EQUITY 1,262,073 1,630,647
--------- ---------
$ 5,524,542 $ 7,008,331
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 14
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 1,306,260 $ 760,768
Loss on Sale of Equipment (229,268) -
Interest 3,045 9,938
---------- --------
TOTAL REVENUES 1,080,037 770,706
---------- --------
OPERATING EXPENSES:
Interest 185,385 124,852
Depreciation & Amortization 1,158,556 527,375
Remarketing Commissions Paid
to Outside Lease Brokers 62,091 100,021
Administrative 78,858 62,179
---------- --------
TOTAL OPERATING EXPENSES 1,484,890 814,427
---------- --------
NET LOSS $ (404,853) $ (43,721)
NET LOSS ALLOCATED TO:
General Partners $ (4,049) $ (437)
Limited Partners (400,804) (43,284)
---------- --------
$ (404,853) $ (43,721)
========== ========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.0345 .7963
Limited Partners 102.4123 78.8324
LOSS PER WEIGHTED AVERAGE UNIT:
General Partners $ (3,914) $ (549)
Limited Partners $ (3,914) $ (549)
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 14
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 1997 June 30, 1996
------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 594,923 $ 373,379
Loss on Sale of Equipment (229,268) -
Interest 1,283 7,907
---------- ----------
TOTAL REVENUES 366,938 381,286
---------- ----------
OPERATING EXPENSES:
Interest 87,103 57,856
Depreciation & Amortization 578,936 265,772
Remarketing Commissions Paid
to Outside Lease Brokers 1,978 31,473
Administrative 26,988 22,420
---------- ----------
TOTAL OPERATING EXPENSES 695,005 377,521
---------- ----------
NET INCOME (LOSS) $ (328,067) $ 3,765
========== ==========
NET INCOME (LOSS) ALLOCATED TO:
General Partners $ (3,281) $ 38
Limited Partners (324,786) 3,727
---------- ----------
$ (328,067) $ 3,765
========== ==========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.0718 .8711
Limited Partners 106.1117 86.2402
INCOME (LOSS) PER WEIGHTED AVERAGE UNIT:
General Partners $ (3,061) $ 43
Limited Partners $ (3,061) $ 43
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 14
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENT OF PARTNERS' EQUITY
Six Months Ended June 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 (404,853) (4,049) (400,804)
OFFERING COSTS (3,271) (33) (3,238)
DISTRIBUTIONS (118,590) (1,186) (117,404)
---------- ------- ----------
PARTNERS' EQUITY
End of period $ 1,262,073 $ 13,172 $1,248,901
========== ======= ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 14
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P
STATEMENTS OF CASH FLOWS
<CAPTION>
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (404,853) $ (43,721)
Adjustments to reconcile
net income (loss) to net cash
provided by operating activities:
Depreciation & Amortization 1,158,556 527,375
Amortization of unearned income (42,891) (72,938)
Loss on sale of equipment 229,268 -
Changes in assets and liabilities:
(Decrease) in accounts
receivable 39,367 -
Decrease (Increase) in
prepaid expense (1,514) 3,177
Increase (Decrease) in
accounts payable 31,352 (24,479)
Increase in other liabilities 11,623 23,539
----------- ----------
Net cash provided by
operating activities 1,020,908 412,953
----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 201,141 220,071
Purchase of computer equipment on
operating leases (10,000) (434,479)
Proceeds from sale of equipment 46,220 -
----------- ----------
Net cash provided by (used in)
investing activities 237,361 (214,408)
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 158,140 501,220
Distributions to partners (118,590) (81,288)
Proceeds from nonrecourse debt - 1,742,100
Principal payments of
nonrecourse debt (1,158,190) (1,680,553)
Offering costs paid (3,271) (67,442)
----------- -----------
Net cash provided by (used in)
financing activities (1,121,911) 414,037
----------- -----------
NET INCREASE IN CASH AND EQUIVALENTS 136,358 612,582
CASH AND EQUIVALENTS,
at the beginning of the period 275,638 399,800
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 411,996 $1,012,382
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 185,385 $ 124,852
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 7 of 14
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (328,067) $ 3,765
Adjustments to reconcile
net income (loss) to net cash
provided by operating activities:
Depreciation & Amortization 578,936 265,772
Amortization of unearned income (20,929) (29,295)
Loss on sale of equipment 229,268 -
Changes in assets and liabilities:
Decrease in accounts receivable 41,413 -
Increase (Decrease) in
prepaid expense 758 (15,757)
(Decrease) Increase in
accounts payable (5,194) 336
Increase in other liabilities 11,869 21,958
---------- ----------
Net cash provided by
operating activities 508,054 246,779
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 101,465 102,198
Purchase of computer equipment
on operating leases (10,000) -
Proceeds from sale of equipment 46,220 -
---------- ----------
Net cash provided by
investing activities 137,685 102,198
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 143,540 191,975
Distributions to partners (59,820) (43,286)
Proceeds from nonrecourse debt - 62,945
Principal payments of
nonrecourse debt (556,656) (385,546)
Offering costs paid (1,082) (25,962)
---------- ----------
Net cash (used in)
financing activities (474,018) (199,874)
---------- ----------
NET INCREASE IN CASH AND EQUIVALENTS 171,721 149,103
CASH AND EQUIVALENTS,
at the beginning of the period 240,275 863,279
---------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 411,996 $1,012,382
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 87,103 $ 57,856
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 8 of 14
<PAGE>
TRIUMPHE LEASING IX L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at June 30, 1997
and the six and three months ended June 30, 1997, and June 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 June 30, 1997 was
the fourteenth 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
non-recourse 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 14
<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 June 30, 1997:
Total minimum lease payments to be received $ 628,107
Estimated residual values of leased property 133,586
Less: Unearned income (72,158)
---------
Net investment in leases $ 689,535
=========
At June 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 $ 2,573,171
1998 2,239,215
1999 1,004,049
2000 106,168
Page 10 of 14
<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 June 30, 1997 the
partnership had sold $2,090,465 in Investor Limited Partner
Units. As of June 30, 1997 the partnership acquired leased
equipment of $9,968,310 with an equity investment of $1,591,369
and non-recourse bank borrowing of $8,376,941. As of June 30,
1997 the partnership had committed to acquire additional leased
equipment of $749,453 with an equity investment of $216,081 and
non-recourse bank borrowing of $533,372.
OPERATIONS
Total revenues increased to $1,080,037 for the first two quarters
of the fiscal year ending December 31, 1997 ("fiscal 1997") from
$770,706 for the first two quarters of the fiscal year ended
December 31, 1996 ("fiscal 1996"). Total revenues consist of
lease rental income, loss on sale of equipment, 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 $1,484,890 for the first two
quarters of fiscal 1997 from $814,427 for the first two quarters
of fiscal 1996. Operating expenses consist of interest on
nonrecourse financing of equipment purchased, depreciation of
equipment, amortization of organization expenses, remarketing
commissions, and administrative expenses. The increase in
operating expenses resulted primarily from an increase in
depreciation expense due to the acquisition of additional leased
equipment.
Results for the period are not indicative of future annual
results because the partnership is still 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 as offering proceeds
are collected and decrease as the partnership makes equipment
investments. Cash and cash equivalents of the partnership at
June 30, 1997 include offering proceeds available for investment
in equipment and undistributed cash earned during the period from
January 31, 1994 to June 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 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 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.
Page 11 of 14
<PAGE>
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 12 of 14
<PAGE>
TRIUMPHE LEASING IX L.P.
PART II - OTHER INFORMATION
NONE
Page 13 of 14
<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 August 12, 1997 By: /s/ Gerald A. Horwitz
------------------------
Gerald A. Horwitz, President
(Principal Executive Officer)
Date August 12, 1997 By: /s/ Jerry L. Schwartz
------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer
(Principal Financial and
Accounting Officer)
Date August 12, 1997 By: /s/ Gerald A. Horwitz
------------------------
Gerald A. Horwitz
Its: General Partner
Page 14 of 14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Jun-30-1997
<CASH> 411,996
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 679,161
<PP&E> 7,543,742
<DEPRECIATION> 3,129,745
<TOTAL-ASSETS> 5,524,542
<CURRENT-LIABILITIES> 1,608,043
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 5,524,542
<SALES> 0
<TOTAL-REVENUES> 1,080,037
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 185,385
<INCOME-PRETAX> (404,853)
<INCOME-TAX> 0
<INCOME-CONTINUING> (404,853)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
