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, 1999
[ ] 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, 1999 December 31, 1998
(Unaudited)
-------------- -----------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 29,720 $ 38,281
Accounts receivable 56,018 2,664
Net investment in direct
financing leases 125,589 217,481
Prepaid expenses 1,371 -
----------- -----------
TOTAL CURRENT ASSETS 212,698 258,426
----------- -----------
COMPUTER EQUIPMENT ON OPERATING LEASES,
less accumulated depreciation of
$3,570,943 and $4,725,776 1,681,404 2,149,666
OTHER ASSETS:
Net investment in direct
financing leases 25,147 27,461
----------- -----------
TOTAL OTHER ASSETS 25,147 27,461
----------- -----------
$ 1,919,249 $ 2,435,553
=========== ===========
<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, 1999 December 31, 1998
-------------- -----------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Other Liabilities $ 4,275 $ 383
Current maturities of
long-term debt 779,822 1,171,365
---------- ----------
TOTAL CURRENT LIABILITIES 784,097 1,171,748
---------- ----------
Accrued Management Fees 233,850 216,484
Long-Term Debt,
less current maturities 26,357 122,179
--------- ---------
TOTAL LONG-TERM LIABILITIES 260,207 338,663
--------- ---------
TOTAL LIABILITIES 1,044,304 1,510,411
--------- ---------
PARTNERS' EQUITY:
General Partners 9,456 9,958
Limited Partners 865,489 915,184
--------- ---------
TOTAL PARTNERS' EQUITY 874,945 925,142
--------- ---------
$1,919,249 $ 2,435,553
========= =========
<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, 1999 March 31, 1998
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
REVENUES:
Lease Income $ 484,650 $ 540,488
Interest - 543
Loss on Sale of Equipment (205,453) -
----------- ----------
TOTAL REVENUES 279,197 541,031
OPERATING EXPENSES:
Interest 22,867 44,634
Depreciation & Amortization 218,808 562,355
Remarketing Commissions Paid
to Outside Lease Brokers 33,600 -
Administrative 21,856 19,965
----------- -----------
TOTAL OPERATING EXPENSES 297,131 626,954
----------- -----------
NET LOSS $ (17,934) $ (85,923)
=========== ===========
NET LOSS ALLOCATED TO:
General Partners $ (179) $ (859)
Limited Partners (17,755) (85,064)
----------- -----------
$ (17,934) $ (85,923)
=========== ===========
WEIGHTED AVERAGE UNITS OUTSTANDING
DURING THE PERIOD:
General Partners 1.0533 1.0533
Limited Partners 104.2761 104.2761
BASIC EARNINGS PER WEIGHTED AVERAGE UNIT:
General Partners $ (170) $ 816
Limited Partners $ (170) $ 816
<FN>
See accompanying notes to financial statements (Unaudited)
</TABLE>
Page 4 of 11
<PAGE>
<TABLE>
TRIUMPHE LEASING IX L.P.
STATEMENT OF PARTNERS' EQUITY
<CAPTION>
Three Months Ended March 31, 1999
(Unaudited)
<CAPTION>
GENERAL LIMITED
TOTAL PARTNERS PARTNERS
<S> <C> <C> <C>
PARTNERS' EQUITY
Beginning of period $ 925,142 $ 9,958 $ 915,184
NET LOSS (17,934) (179) (17,755)
DISTRIBUTIONS (32,263) (323) (31,940)
----------- -------- -----------
PARTNERS' EQUITY
End of period $ 874,945 $ 9,456 $ 865,489
=========== ======== ===========
<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, 1999 March 31, 1998
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (17,934) $ (132,110)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depreciation & amortization 218,808 562,354
Loss on sale of equipment 205,453 -
Changes in assets and liabilities:
(Increase) Decrease in accounts
receivable (53,354) 5,328
Increase in prepaid expense (1,371) (2,274)
Increase in accrued
management fees 17,366 21,049
Increase in other liabilities 3,892 -
----------- -----------
Net cash provided by
operating activities 372,860 454,347
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equipment 44,000 -
Principal payments received under
direct financing leases 94,207 90,282
----------- -----------
Net cash provided by
investing activities 138,207 90,282
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (32,263) (64,564)
Principal payments of nonrecourse
debt (487,365) (541,345)
----------- -----------
Net cash used in
financing activities (519,628) (605,909)
----------- -----------
NET DECREASE IN CASH AND
EQUIVALENTS (8,561) (61,280)
CASH AND EQUIVALENTS,
at the beginning of the period 38,281 179,796
----------- -----------
CASH AND EQUIVALENTS,
at the end of the period $ 29,720 $ 118,516
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period
for interest $ 22,867 $ 65,741
<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, 1999
and the three months ended March 31, 1999, and March 31, 1998, 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,
1999 was the twenty-first 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 were 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, 1999:
Total minimum lease payments to be received $ 137,358
Estimated residual values of leased property 13,378
Less: Unearned income -
----------
Net investment in leases $ 150,736
==========
At March 31, 1999, 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
1999 1,280,275
2000 151,610
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, 1999 the
partnership had sold $1,893,615 in Investor Limited Partner
Units. As of March 31, 1999 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 $279,197 for the first quarter of the
fiscal year ending December 31, 1999 ("fiscal 1999") from
$541,031 for the first quarter of the fiscal year ended December
31, 1998 ("fiscal 1998"). Total revenues consist of lease rental
income, interest earned on short-term money market
investments and loss on sale of equipment. The decrease in total
revenues was primarily attributable to a decline in the amount of
equipment on lease and the loss on sale of equipment.
Operating expenses decreased to $297,131 for the first quarter of
fiscal 1999 from $626,954 for the first quarter of fiscal 1998.
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 of the partnership at March 31, 1999 include
offering proceeds available for investment in equipment and
undistributed cash earned during the period from January 31, 1994
to March 31, 1999.
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 3, 1999 By: /s/ Gerald A. Horwitz
----------------------------
Gerald A. Horwitz, President
(Principal Executive
Officer)
Date May 3, 1999 By: /s/ Jerry L. Schwartz
----------------------------
Jerry L. Schwartz,
Vice President,
Secretary and Treasurer
(Principal Financial and
Accounting Officer)
Date May 3, 1999 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-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Mar-31-1999
<CASH> 29,720
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 212,698
<PP&E> 5,252,347
<DEPRECIATION> 3,570,943
<TOTAL-ASSETS> 1,919,249
<CURRENT-LIABILITIES> 784,097
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,919,249
<SALES> 0
<TOTAL-REVENUES> 279,197
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,867
<INCOME-PRETAX> (17,934)
<INCOME-TAX> 0
<INCOME-CONTINUING> (17,934)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
