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 March 31, 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 11
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 240,275 $ 275,638
Accounts receivable 41,413 39,367
Net investment in direct
financing leases 336,422 346,770
Prepaid expenses 2,272 -
--------- ---------
TOTAL CURRENT ASSETS 620,382 661,775
--------- ---------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$3,245,335 and $2,596,827 5,125,659 5,774,166
--------- ---------
OTHER ASSETS:
Net investment in direct
financing leases 495,024 562,390
Deferred organization costs,
less accumulated amortization
of $16,250 and $15,000 8,750 10,000
--------- ---------
TOTAL OTHER ASSETS 503,774 572,390
--------- ---------
$ 6,249,815 $ 7,008,331
========== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 2 of 11
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<TABLE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS - CONTINUED
TRIUMPHE LEASING IX L.P.
BALANCE SHEETS
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 124,404 $ 87,858
Current maturities of
long-term debt 2,064,637 2,170,218
Other liabilities 6,814 7,060
--------- ---------
TOTAL CURRENT LIABILITIES 2,195,855 2,265,136
--------- ---------
LONG-TERM DEBT,
less current maturities 2,616,595 3,112,548
--------- ---------
TOTAL LIABILITIES 4,812,450 5,377,684
--------- ---------
PARTNERS' EQUITY:
General Partners 14,671 16,750
Limited Partners 1,422,694 1,613,897
--------- ---------
TOTAL PARTNERS' EQUITY 1,437,365 1,630,647
--------- ---------
$ 6,249,815 $ 7,008,331
========= =========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 3 of 11
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<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 711,337 $ 387,389
Interest 1,762 2,030
-------- --------
TOTAL REVENUES 713,099 389,419
-------- --------
OPERATING EXPENSES:
Interest 98,282 66,996
Depreciation & Amortization 649,757 261,603
Remarketing Commissions Paid
to Outside Lease Brokers 60,114 68,548
Administrative 51,869 39,758
-------- --------
TOTAL OPERATING EXPENSES 860,022 436,905
-------- --------
NET (LOSS) INCOME $ (146,923) $ (47,486)
========= =========
NET (LOSS) INCOME ALLOCATED TO:
General Partners $ (1,469) $ (475)
Limited Partners (145,454) (47,011)
--------- ---------
$ (146,923) $ (47,486)
========= =========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners .8414 .5432
Limited Partners 83.2974 53.7719
(LOSS) INCOME PER WEIGHTED AVERAGE UNIT:
General Partners $(1,746) $ (874)
Limited Partners $(1,746) $ (874)
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 11
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<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENT OF PARTNERS' EQUITY
<CAPTION>
Three Months Ended March 31, 1997
(Unaudited)
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 1,630,647 $ 16,750 $ 1,613,897
CAPITAL CONTRIBUTIONS 14,600 - 14,600
NET LOSS (146,923) (1,469) (145,454)
OFFERING COSTS (2,189) (22) (2,167)
DISTRIBUTIONS (58,770) (588) (58,182)
---------- ------- ----------
PARTNERS' EQUITY
End of period $ 1,437,365 $ 14,671 $ 1,422,694
========= ====== ==========
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 5 of 11
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<TABLE>
TRIUMPHE LEASING IX L.P
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (146,923) $ (47,486)
Adjustments to reconcile
net (loss) income to net
cash provided by operating
activities:
Depreciation & amortization 649,757 261,603
Amortization of unearned income (21,962) (43,643)
Changes in assets and liabilities:
Increase in accounts receivable (2,046) -
Increase (Decrease) in prepaid
expense and other (3,293) 18,934
(Decrease) Increase in accounts
payable 36,546 (24,815)
Increase (Decrease) in other
liabilities (246) 1,581
-------- -------
Net cash provided by
operating activities 511,833 166,174
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 99,676 117,873
Purchase of computer equipment on
operating leases - (434,479)
------- ---------
Net cash provided by (used in)
investing activities 99,676 (316,606)
------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions 14,600 309,245
Distributions to partners (58,770) (38,002)
Proceeds from nonrecourse debt - 1,679,155
Principal payments of
nonrecourse debt (601,534) (1,295,007)
Offering costs paid (1,168) (41,480)
--------- -----------
Net cash provided by (used in)
financing activities (646,872) 613,911
--------- -----------
NET (DECREASE) INCREASE IN CASH
AND EQUIVALENTS (35,363) 463,479
CASH AND EQUIVALENTS,
at the beginning of the period 275,638 399,800
--------- ----------
CASH AND EQUIVALENTS,
at the end of the period $ 240,275 $ 863,279
======== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the
period for interest $ 98,282 $ 66,996
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 11
<PAGE>
TRIUMPHE LEASING IX L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at March 31, 1997
and the three months ended March 31, 1997, and March 31, 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 March 31,
1997 was the thirteenth quarter of operations of the partnership.
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 four 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 7 of 11
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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 March 31, 1997:
Total minimum lease payments to be received $ 729,572
Estimated residual values of leased property 194,961
Less: Unearned income (93,087)
---------
Net investment in leases $ 831,446
At March 31, 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 8 of 11
<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 March 31, 1997 the
partnership had sold $1,934,015 in Investor Limited Partner
Units. As of March 31, 1997 the partnership acquired leased
equipment of $9,968,310 with an equity investment of
$1,591,369 and nonrecourse bank borrowing of $8,376,941. As of
March 31, 1997 the partnership had committed to acquire
additional leased equipment of $612,974 with an equity
investment of $107,147 and nonrecourse bank borrowing of
$505,827.
OPERATIONS
Total revenues increased to $713,099 for the first quarter of the
fiscal year ending December 31, 1997 ("fiscal 1997") from
$389,419 for the first quarter 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 and
interest earned on funds held for investment.
Operating expenses increased to $860,022 for the first quarter of
fiscal 1997 from $436,905 for the first quarter 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 due to the acquisition of
additional leased equipment.
Results for the 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 as offering proceeds
are collected and decrease as the partnership makes equipment
investments. Cash and cash equivalents of the partnership at
March 31, 1997 include offering proceeds available for investment
in equipment and undistributed cash earned during the period from
January 31, 1994 to March 31, 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 9 of 11
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TRIUMPHE LEASING IX L.P.
PART II - OTHER INFORMATION
NONE
Page 10 of 11
<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 May 1, 1997 By: /s/ Gerald A. Horwitz
------------------- ----------------------------
Gerald A. Horwitz, President
(Principal Executive Officer)
Date May 1, 1997 By: /s/ Jerry L. Schwartz
------------------- -----------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer
(Principal Financial and
Accounting Officer)
Date May 1, 1997 By: /s/ Gerald A. Horwitz
------------------- -----------------------------
Gerald A. Horwitz
Its: General Partner
Page 11 of 11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Mar-31-1997
<CASH> 240,275
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 620,382
<PP&E> 10,967,821
<DEPRECIATION> 5,842,162
<TOTAL-ASSETS> 6,249,815
<CURRENT-LIABILITIES> 2,195,855
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,249,815
<SALES> 0
<TOTAL-REVENUES> 713,099
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 98,282
<INCOME-PRETAX> (146,923)
<INCOME-TAX> 0
<INCOME-CONTINUING> (146,923)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
