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, 1998
[ ] 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, 1998 December 31, 1997
(Unaudited)
-------------- -----------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 118,516 $ 179,796
Accounts receivable - 5,328
Net investment in direct
financing leases 361,129 361,129
Prepaid expenses 2,274 -
----------- -----------
TOTAL CURRENT ASSETS 481,919 546,253
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$3,858,031 and $3,295,593 3,018,745 3,579,849
OTHER ASSETS:
Net investment in direct
financing leases 146,814 237,096
Deferred organization costs,
less accumulated amortization of
$21,250 and $20,000 3,750 5,000
----------- -----------
TOTAL OTHER ASSETS 150,564 242,096
----------- -----------
$ 3,651,228 $ 4,368,198
=========== ===========
<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, 1998 December 31, 1997
-------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,192 $ -
Current maturities of
long-term debt 2,174,952 2,228,931
---------- ----------
TOTAL CURRENT LIABILITIES 2,177,144 2,228,931
Accrued Management Fees 160,068 141,211
Long-Term Debt,
less current maturities 806,179 1,293,545
--------- ---------
TOTAL LONG-TERM LIABILITIES 966,247 1,434,756
--------- ---------
TOTAL LIABILITIES 3,143,391 3,663,687
PARTNERS' EQUITY:
General Partners 5,630 7,597
Limited Partners 502,207 696,914
--------- ---------
TOTAL PARTNERS' EQUITY 507,837 704,511
--------- ---------
$3,651,228 $ 4,368,198
========= =========
<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, 1998 March 31, 1997
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 532,643 $ 711,337
Interest - 1,762
----------- -----------
TOTAL REVENUES 532,643 713,099
OPERATING EXPENSES:
Interest 65,741 98,282
Depreciation & Amortization 562,354 649,757
Remarketing Commissions Paid
to Outside Lease Brokers - 60,114
Administrative 36,658 51,869
----------- -----------
TOTAL OPERATING EXPENSES 664,753 860,022
----------- -----------
NET LOSS $ (132,110) $ (146,923)
=========== ===========
NET LOSS ALLOCATED TO:
General Partners $ (1,321) $ (1,469)
Limited Partners (130,789) (145,454)
----------- -----------
$ (132,110) $ (146,923)
=========== ===========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.0533 .8414
Limited Partners 104.2761 83.2974
BASIC AND FULLY DILUTED EARNINGS PER WEIGHTED AVERAGE UNIT:
General Partners $ (1,254) $ (1,746)
Limited Partners $ (1,254) $ (1,746)
<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, 1998
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 704,511 $ 7,597 $ 696,914
NET LOSS (132,110) (1,321) (130,789)
DISTRIBUTIONS (64,564) (646) (63,918)
----------- -------- -----------
PARTNERS' EQUITY
End of period $ 507,837 $ 5,630 $ 502,207
=========== ======== ===========
<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, 1998 March 31, 1997
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (132,110) $ (146,923)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depreciation & amortization 562,354 649,757
Amortization of unearned income - (21,962)
Changes in assets and liabilities:
Decrease (Increase) in accounts
receivable 5,328 (2,046)
Increase in prepaid expense (2,274) (3,293)
Increase in accounts payable and
accrued management fees 21,049 36,546
Decrease in other liabilities - (246)
----------- -----------
Net cash provided by
operating activities 454,347 511,833
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments received under
direct financing leases 90,282 99,676
----------- -----------
Net cash provided by
investing activities 90,282 99,676
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Partner capital contributions - 14,600
Distributions to partners (64,564) (58,770)
Principal payments of nonrecourse
debt (541,345) (601,534)
Offering costs paid - (1,168)
----------- -----------
Net cash used in
financing activities (605,909) (646,872)
----------- -----------
NET DECREASE IN CASH AND
EQUIVALENTS (61,280) (35,363)
CASH AND EQUIVALENTS,
at the beginning of the period 179,796 275,638
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 118,516 $ 240,275
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 65,741 $ 98,282
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 6 of 11
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TRIUMPHE LEASING IX L.P.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The financial information included herein at March 31, 1998
and the three months ended March 31, 1998, and March 31, 1997, 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,
1998 was the seventeenth 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 three 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, 1998:
Total minimum lease payments to be received $ 494,565
Estimated residual values of leased property 13,378
Less: Unearned income -
----------
Net investment in leases $ 507,943
==========
At March 31, 1998, minimum lease payments for direct
financing and operating leases for each of the three succeeding
calendar years are expected to be received as follows:
YEAR AMOUNT
1998 2,502,063
1999 1,305,753
2000 135,918
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, 1998 the
partnership had sold $1,893,615 in Investor Limited Partner
Units. As of March 31, 1998 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 decreased to $532,643 for the first quarter of the
fiscal year ending December 31, 1998 ("fiscal 1998") from
$713,099 for the first quarter of the fiscal year ended December
31, 1997 ("fiscal 1997"). Total revenues consist of lease rental
income and interest earned on short-term money market
investments. The decrease in total revenues was primarily
attributable to a decline in the amount of equipment on lease.
Operating expenses decreased to $664,753 for the first quarter of
fiscal 1998 from $860,022 for the first quarter of fiscal 1997.
Operating expenses consist of interest on nonrecourse financing
of equipment purchased, depreciation of equipment, amortization
of organization expenses, and administrative expenses. The
decrease in operating expenses resulted primarily from a decrease
in the amount of equipment on lease.
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, 1998 include offering proceeds available for investment
in equipment and undistributed cash earned during the period from
January 31, 1994 to March 31, 1998.
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
<PAGE>
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 April 29, 1998 By: /s/ Gerald A. Horwitz
----------------------------
Gerald A. Horwitz, President
(Principal Executive
Officer)
Date April 29, 1998 By: /s/ Jerry L. Schwartz
----------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer
(Principal Financial and
Accounting Officer)
Date April 29, 1998 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-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Mar-31-1998
<CASH> 118,516
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 481,919
<PP&E> 6,876,776
<DEPRECIATION> 3,858,031
<TOTAL-ASSETS> 3,651,228
<CURRENT-LIABILITIES> 2,177,144
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,651,228
<SALES> 0
<TOTAL-REVENUES> 532,643
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 65,741
<INCOME-PRETAX> (132,110)
<INCOME-TAX> 0
<INCOME-CONTINUING> (132,110)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
