Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|X| Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the quarterly period ended September 30, 1996
|_| Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the transition period from _______ to _______
Commission File Number 0-28368
ATEL Cash Distribution Fund VI, L.P.
(Exact name of registrant as specified in its charter)
California 94-3207229
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 989-8800
Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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.
Yes |X|
No |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
Page 1 of 16
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Page 2
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(Unaudited)
ASSETS
1996 1995
---- ----
Cash and cash equivalents $9,085,327 $2,074,913
Accounts receivable 2,537,849 2,006,703
Investments in leases 169,341,728 92,802,029
----------------- -----------------
Total assets $180,964,904 $96,883,645
================= =================
LIABILITIES AND PARTNERS' CAPITAL
Non-recourse debt $59,823,418 $836,181
Line of credit 34,755,753 38,368,672
Accounts payable:
General Partner 625,609 1,279,066
Equipment purchases - 5,176,506
Other 896,187 117,483
Accrued interest payable 478,759 230,967
Unearned operating lease income 290,527 298,733
----------------- -----------------
Total liabilities 96,870,253 46,307,608
Partners' capital:
General Partner (42,521) (23,675)
Limited Partners 84,137,172 50,599,712
----------------- -----------------
Total partners' capital 84,094,651 50,576,037
----------------- -----------------
Total liabilities and partners' capital $180,964,904 $96,883,645
================= =================
See accompanying notes.
Page 3
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
STATEMENTS OF OPERATIONS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Leasing activities:
Operating leases $15,880,432 $3,208,205 $6,379,734 $1,470,451
Direct financing leases 164,221 31,449 54,003 27,702
Gain on sales of assets (103,256) 2,662 (112,636) 1,233
Interest 47,295 41,821 8,369 31,064
Other 69,411 2,768 67,446 1,640
------------------ ---------------- ----------------- -----------------
16,058,103 3,286,905 6,396,916 1,532,090
Expenses:
Depreciation and amortization 12,099,732 2,428,738 4,660,786 1,239,756
Interest expense 3,351,933 428,946 1,432,018 23,017
Administrative cost reimbursements to General
Partner 509,538 340,579 229,144 151,347
Equipment and incentive management fees to
General Partner 722,337 216,246 300,709 120,669
Other 370,774 50,228 229,431 10,463
Professional fees 177,836 40,659 54,284 15,446
Provision for losses 160,599 32,869 64,000 15,321
------------------ ---------------- ----------------- -----------------
17,392,749 3,538,265 6,970,372 1,576,019
------------------ ---------------- ----------------- -----------------
Net loss ($1,334,646) ($251,360) ($573,456) ($43,929)
================== ================ ================= =================
Net loss:
General Partner (13,346) (2,514) (5,735) (439)
Limited Partners (1,321,300) (248,846) (567,721) (43,490)
------------------ ---------------- ----------------- -----------------
($1,334,646) ($251,360) ($573,456) ($43,929)
================== ================ ================= =================
Net loss per Limited Partnership Unit ($0.15) ($0.11) ($0.06) ($0.01)
Weighted average number of Units outstanding 8,570,592 2,328,074 10,097,070 3,970,984
</TABLE>
See accompanying notes.
Page 4
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
NINE MONTH PERIOD ENDED
SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners General
Units Amount Partner Total
<S> <C> <C> <C> <C>
Balance December 31, 1995 6,269,013 $50,599,712 ($23,675) $50,576,037
Capital contributions 4,724,942 47,249,420 - 47,249,420
Less selling commissions to affiliates (4,488,695) - (4,488,695)
Other syndication costs to affiliates (1,967,294) - (1,967,294)
Distributions to partners (5,934,671) (5,500) (5,940,171)
Net loss (1,321,300) (13,346) (1,334,646)
------------------ ---------------- ----------------- -----------------
Balance September 30, 1996 10,993,955 $84,137,172 ($42,521) $84,094,651
================== ================ ================= =================
</TABLE>
See accompanying notes.
Page 5
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
STATEMENT OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operating activities:
Net loss ($1,334,646) ($251,360) ($573,456) ($43,929)
Adjustment to reconcile net income to cash provided
by operating activities:
Depreciation and amortization 12,099,732 2,428,738 4,660,786 1,239,756
Loss (gain) on sales of assets 103,256 (2,662) 112,636 (1,233)
Provision for losses 160,599 32,869 64,000 15,321
Changes in operating assets and liabilities:
Accounts receivable (531,146) (779,303) 153,321 (75,940)
Accounts payable, General Partner (653,457) 878,069 (602,917) 660,100
Accounts payable, other 778,704 98,794 692,107 74,405
Accrued interest payable 247,792 - 178,278 -
Unearned lease income (8,206) 217,319 79,161 (64,017)
------------------ ---------------- ----------------- -----------------
Net cash provided by operations 10,862,628 2,622,464 4,763,916 1,804,463
------------------ ---------------- ----------------- -----------------
Investing activities:
Purchases of equipment on operating leases (92,069,843) (53,693,278) (37,205,859) (27,038,267)
Purchases of equipment on direct financing leases (368,527) (1,675,974) (259,110) (782,522)
Purchases of residual value interests (335,139) - - -
Initial direct costs paid to General Partner (2,070,264) (1,722,725) (519,224) (826,005)
Reduction in net investment in direct financing leases 367,424 90,090 131,286 55,342
Proceeds from sales of assets 396,557 43,710 293,310 12,179
------------------ ---------------- ----------------- -----------------
Net cash used in investing activities (94,079,792) (56,958,177) (37,559,597) (28,579,273)
------------------ ---------------- ----------------- -----------------
</TABLE>
Page 6
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
STATEMENT OF CASH FLOWS
(CONTINUED)
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Financing activities:
Borrowings under line of credit 58,391,599 31,169,698 18,912,219 16,750,000
Repayments of borrowings under line of credit (62,004,518) (15,169,698) (11,507,696) (3,219,197)
Proceeds of non-recourse debt 62,182,581 - 22,448,429 -
Repayments of non-recourse debt (3,195,344) - (2,467,341) -
Capital contributions received 47,249,420 47,074,510 16,620,130 15,736,140
Payment of syndication costs to General Partner (6,455,989) (6,707,356) (2,018,034) (2,477,586)
Distributions to Partners (5,940,171) (1,281,588) (2,356,278) (804,813)
------------------ ---------------- ----------------- -----------------
Net cash provided by financing activities 90,227,578 55,085,566 39,631,429 25,984,544
------------------ ---------------- ----------------- -----------------
Net increase (decrease) in cash and cash
equivalents 7,010,414 749,853 6,835,748 (790,266)
Cash and cash equivalents at beginning of
period 2,074,913 600 2,249,579 1,540,719
------------------ ---------------- ----------------- -----------------
Cash and cash equivalents at end of period $9,085,327 $750,453 $9,085,327 $750,453
================== ================ ================= =================
Supplemental disclosures of cash flow
information:
Cash paid during the period for interest $3,351,933 $428,946 $1,432,018 $67,306
================== ================ ================= =================
Supplemental schedule of non-cash transactions:
Operating lease assets reclassified to equipment
held for lease $1,360,763 $729,071
Less accumulated depreciation (282,137) (269,686)
================== =================
$1,078,626 $459,385
================== =================
</TABLE>
See accompanying notes.
Page 7
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
1. Summary of significant accounting policies:
Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Organization and partnership matters:
ATEL Cash Distribution Fund VI, L.P. (the Fund), was formed under the laws of
the State of California on June 29 , 1994, for the purpose of acquiring
equipment to engage in equipment leasing and sales activities. Contributions in
the amount of $600 were received as of July 21, 1994, $100 of which represented
the General Partner's (ATEL Financial Corporation's) continuing interest, and
$500 of which represented the Initial Limited Partners' capital investment.
Upon the sale of the minimum amount of Units of Limited Partnership interest
(Units) of $1,200,000 and the receipt of the proceeds thereof on January 3,
1995, the Partnership commenced operations. The Fund or the General Partner on
behalf of the Fund, will incur costs in connection with the organization,
registration and issuance of the Units. The amount of such costs to be born by
the Fund is limited by certain provisions in the Agreement of Limited
Partnership.
The Partnership does not make a provision for income taxes since all income and
losses will be allocated to the Partners for inclusion in their individual tax
returns.
3. Investment in leases:
The Partnership's investment in leases consists of the following:
<TABLE>
<CAPTION>
Depreciation
Balance Expense or Reclass- Balance
December 31, Amortization ifications & September 30,
1995 Additions of Leases Dispositions 1996
---- --------- --------- ------------ ----
<S> <C> <C> <C> <C> <C>
Net investment in operating leases $87,360,104 $86,893,337 ($11,332,840) ($1,078,625) $161,841,976
Net investment in direct financing
leases 2,765,945 368,527 (367,424) - 2,767,048
Equipment held for sale or lease 45,160 - (21,918) 578,812 602,054
Residual interests - 335,139 - - 335,139
Initial direct costs, net of
accumulated amortization of
$933,369 in 1996 and
$213,267 in 1995 2,695,712 2,070,264 (744,974) - 4,021,002
Reserve for losses (64,892) (160,599) - - (225,491)
------------------- ------------------ ---------------- ----------------- -----------------
$92,802,029 $89,506,668 ($12,467,156) ($499,813) $169,341,728
=================== ================== ================ ================= =================
</TABLE>
Page 8
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
3. Investment in leases (continued):
Property on operating leases consists of the following:
<TABLE>
<CAPTION>
Balance Balance
December 31, Acquisitions, Dispositions & Reclassifications September 30,
1995 1st Quarter 2nd Quarter 3rd Quarter 1996
---- ----------- ----------- ----------- ----
<S> <C> <C> <C> <C> <C>
Transportation $58,140,854 $28,160,856 ($554,553) $15,047,722 $100,794,879
Construction 14,741,280 1,849,333 9,446,702 4,465,897 30,503,212
Materials handling 12,919,801 2,546,032 2,565,397 3,603,006 21,634,236
Manufacturing 1,298,697 317,520 3,397,538 7,555,996 12,569,751
Office automation 5,015,082 175,537 1,151,423 4,870,933 11,212,975
Other - - - 933,235 933,235
------------------- ------------------ ---------------- ----------------- -----------------
92,115,714 33,049,278 16,006,507 36,476,789 177,648,288
Less accumulated depreciation (4,755,610) (3,136,409) (3,837,538) (4,076,755) (15,806,312)
------------------- ------------------ ---------------- ----------------- -----------------
$87,360,104 $29,912,869 $12,168,969 $32,400,034 $161,841,976
=================== ================== ================ ================= =================
</TABLE>
The following lists the components of the Partnership's investment in direct
financing leases as of September 30, 1996:
Total minimum lease payments receivable $1,706,533
Estimated residual values of leased equipment (unguaranteed) 1,302,053
-----------------
Investment in direct financing leases 3,008,586
Less unearned income (241,538)
-----------------
Net investment in direct financing leases $2,767,048
=================
All of the property on leases was acquired in 1995 and 1996.
At September 30, 1996, the aggregate amounts of future minimum lease payments
are as follows:
<TABLE>
<CAPTION>
Direct
Operating Financing
Leases Leases Total
------ ------ -----
<S> <C> <C> <C>
Three months ending December 31, 1996 $5,694,748 $230,744 $5,925,492
Year ending December 31, 1996 24,350,860 776,338 25,127,198
1998 21,257,001 413,444 21,670,445
1999 17,545,317 173,038 17,718,355
2000 14,455,982 112,969 14,568,951
Thereafter 30,781,089 - 30,781,089
------------------ ---------------- -----------------
$114,084,997 $1,706,533 $115,791,530
================== ================ =================
</TABLE>
Page 9
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
4. Non-recourse debt:
Notes payable to financial institutions are due in varying monthly, quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments of lease payments and pledges of the assets which were purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
6.33% to 12.23%.
Future minimum principal payments of non-recourse debt as of September 30, 1996
are as follows:
<TABLE>
<CAPTION>
Principal Interest Total
--------- -------- -----
<S> <C> <C> <C>
Three months ending December 31, 1996 $1,316,555 $525,386 $1,841,941
Year ending December 31, 1997 7,525,340 2,613,651 10,138,991
1998 8,508,049 5,930,485 14,438,534
1999 9,225,631 3,653,502 12,879,133
2000 8,702,301 2,881,954 11,584,255
Thereafter 24,545,542 9,286,938 33,832,480
------------------ ---------------- -----------------
$59,823,418 $24,891,916 $84,715,334
================== ================ =================
</TABLE>
5. Related party transactions:
The terms of the Limited Partnership Agreement provide that the General Partner
and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Partnership.
The General Partner and/or Affiliates earned fees, commissions and
reimbursements, pursuant to the Limited Partnership Agreement as follows:
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Selling commissions (equal to 9.5% of the selling price of the Limited Partnership
units, deducted from Limited Partners' capital) $4,488,695 $4,472,078
Reimbursement of other syndication costs 1,967,294 2,235,277
Acquisition fees equal to 3.25% of the equipment purchase price, for evaluating
and selecting equipment to be acquired (not to exceed approximately 4.75% of
Gross Proceeds, included in property on operating leases). (Effective July 1,
1995 these
percentages have been reduced to 3.0% and 4.5%, respectively.) 2,070,264 1,722,725
Incentive management fees (computed as 4% of distributions of cash from
operations, as defined in the Limited Partnership Agreement) and equipment
management fees (computed as 5% of gross revenues from operating leases, as
defined in the Limited Partnership Agreement plus 2% of gross revenues from full
payout leases, as defined in the Limited Partnership Agreement). (Effective July
1,
1995 these percentages have been amended to 3.25%, 3.5% and 2%, respectively.) 722,337 216,246
Administrative cost reimbursements to General Partner 509,538 340,579
----------------- -----------------
$9,758,128 $8,986,905
================= =================
</TABLE>
Page 10
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
5. Related party transactions (continued):
The Limited Partnership Agreement allows for the reimbursement of costs incurred
by the General Partner in providing administrative services to the Partnership.
Administrative services provided include Partnership accounting, investor
relations, legal counsel and lease and equipment documentation. The General
Partner is not reimbursed for services where it is entitled to receive a
separate fee as compensation for such services, such as acquisition and
management of equipment. Reimbursable costs incurred by the General Partner are
allocated to the Partnership based upon actual time incurred by employees
working on Partnership business and an allocation of rent and other costs based
on utilization studies.
Substantially all employees of the General Partner record time incurred in
performing administrative services on behalf of all of the Partnerships serviced
by the General Partner. The General Partner believes that the costs reimbursed
are the lower of (i) actual costs incurred on behalf of the Partnership or (ii)
the amount the Partnership would be required to pay independent parties for
comparable administrative services in the same geographic location and are
reimbursable in accordance with the Limited Partnership Agreement.
6. Partner's capital:
As of September 30, 1996, 10,993,955 Units ($109,939,550) were issued and
outstanding. The Fund's registration statement with the Securities and Exchange
Commission became effective November 23, 1994. The Fund is authorized to issue
up to 12,500,050 Units, including the 50 Units issued to the initial limited
partners.
The Partnership Net Profits, Net Losses, and Tax Credits are to be allocated 99%
to the Limited Partners and 1% to the General Partner.
Available Cash from Operations and Cash from Sales and Refinancing, as defined
in the Limited Partnership Agreement, shall be distributed as follows:
First, 95% (95.75% after June 30, 1995) of Distributions of Cash from
Operations to the Limited Partners, 1% of Distributions of Cash from
Operations to the General Partner and 4% (3.25% after June 30, 1995) to an
affiliate of the General Partner as Incentive Management Compensation, 99%
of Distributions of Cash from Sales or Refinancing to the Limited Partners
and 1% of Cash from Sales or Refinancing to the General Partner.
Second, the balance to the Limited Partners until the Limited Partners have
received Aggregate Distributions in an amount equal to their Original
Invested Capital, as defined, plus a 10% per annum cumulative (compounded
daily) return on their Adjusted Invested Capital.
Third, an affiliate of the General Partner will receive as Incentive
Management Compensation, 4% (3.25% after June 30, 1995) of remaining Cash
from Sales or Refinancing.
Fourth, the balance to the Limited Partners.
Page 11
<PAGE>
ATEL CASH DISTRIBUTION FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
7. Line of credit:
The Partnership participates with the General Partner and certain of its
affiliates in a $70,000,000 revolving line of credit with a financial
institution. The line of credit expires on July 18, 1997.
The facility, when used by the Partnership, is collateralized by (i) leases and
equipment owned by the Partnership and financed by the lines and (ii) all other
assets owned by the Partnership except equipment, lease receipts and residual
values specifically pledged to other equipment funding sources.
8. Commitments:
As of September 30, 1996, the Partnership had outstanding commitments to
purchase lease equipment totaling approximately $30,689,000.
Page 12
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Capital Resources and Liquidity
During the first three quarters of 1996, the Partnership's primary activities
were raising funds through its offering of Limited Partnership Units (Units) and
engaging in equipment leasing activities. Through September 30, 1996, the
Partnership had received and accepted subscriptions for 10,993,955 Units
($109,939,550) all of which were issued and outstanding.
The Partnership's primary sources of liquidity during the first nine months of
1996 were subscription proceeds from the public offering of Units, proceeds from
non-recourse debt and borrowings under the line of credit. The liquidity of the
Partnership will vary in the future, increasing to the extent cash flows from
leases exceed expenses, and decreasing as lease assets are acquired, as
distributions are made to the limited partners and to the extent expenses exceed
cash flows from leases.
As another source of liquidity, the Partnership has contractual obligations with
a diversified group of lessees for fixed lease terms at fixed rental amounts. As
the initial lease terms expire, the Partnership will re-lease or sell the
equipment. The future liquidity beyond the contractual minimum rentals will
depend on the General Partner's success in re-leasing or selling the equipment
as it comes off lease.
The Partnership participates with the General Partner and certain of its
affiliates in a $70,000,000 revolving line of credit with a financial
institution. The line of credit expires on July 18, 1997.
The facility, when used by the Partnership, is collateralized by (i) leases and
equipment owned by the Partnership and financed by the lines and (ii) all other
assets owned by the Partnership except equipment, lease receipts and residual
values specifically pledged to other equipment funding sources.
The Partnership anticipates reinvesting a portion of lease payments from assets
owned in new leasing transactions. Such reinvestment will occur only after the
payment of all obligations, including debt service (both principal and
interest), the payment of management and acquisition fees to the General Partner
and providing for cash distributions to the Limited Partners.
The Partnership currently has available adequate reserves to meet contingencies,
but in the event those reserves were found to be inadequate, the Partnership
would likely be in a position to borrow against its current portfolio to meet
such requirements. The General Partner envisions no such requirements for
operating purposes.
As of September 30, 1995, the Partnership had borrowed $63,126,117 with a
remaining unpaid balance of $59,823,418. The General Partner expects that
aggregate borrowings in the future will not exceed 50% of aggregate equipment
cost. In any event, the Agreement of Limited Partnership limits such borrowings
to 50% of the total cost of equipment, in aggregate.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. Such commitments totaled approximately
$30,689,000 as of September 30, 1996.
If inflation in the general economy becomes significant, it may affect the
Partnership inasmuch as the residual (resale) values and rates on re-leases of
the Partnership's leased assets may increase as the costs of similar assets
increase. However, the Partnership's revenues from existing leases would not
increase, as such rates are generally fixed for the terms of the leases without
adjustment for inflation.
If interest rates increase significantly, the lease rates that the Partnership
can obtain on future leases will be expected to increase as the cost of capital
is a significant factor in the pricing of lease financing. Leases already in
place, for the most part, would not be affected by changes in interest rates.
Page 13
<PAGE>
1996 vs. 1995:
During the first three quarters of 1996, the Partnership's primary sources of
liquidity were the proceeds of its offering of Units, proceeds of non-recourse
debt and funds borrowed on the line of credit.
Cash from operating activities was almost entirely from operating lease rents.
Proceeds from the sales of assets and direct financing lease rents were the only
investing sources of cash and were not significant. The primary investing use of
cash was the purchase of assets on operating and direct financing leases and
initial direct costs related to those purchases.
Cash from financing sources consisted of cash received for subscriptions for
Units, proceeds of non-recourse debt and borrowings under the line of credit.
The borrowings under the line of credit were used to fund lease asset
acquisitions and payments on the line were made from capital contributions
received and proceeds of non-recourse debt.
Results of operations
Operations resulted in a net loss of $1,334,646 for the nine months ended
September 30, 1996 compared to $251,360 in 1995. Operations resulted in a net
loss of $573,456 in 1996 compared to $43,929 in 1995 for the three month
periods. The Partnership's primary source of revenues is from operating leases.
This is expected to remain true in future periods although the amounts are
expected to increase as a result of additional equipment acquisitions.
Depreciation expense is the single largest expense of the Partnership and is
expected to remain so in future periods although at a higher amount. Equipment
management fees are based on the Partnership's rental revenues and are expected
to increase in relation to expected increases in the Partnership's revenues from
leases. Incentive management fees are based on the levels of distributions to
limited partners. As the effective distribution rate increases and as the number
of units outstanding increases (as a result of the continuing offering of such
units), the incentive management fee is expected to increase.
Results of operations in 1996 are not comparable to 1995. During both periods,
the Partnership was raising equity through its public offering and was entering
into significant lease transactions and significant purchases of related
equipment. At September 30, 1996 both of these activities were continuing. The
results of operations in future periods are not expected to be comparable to
either 1996 or 1995.
Page 14
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Inapplicable.
Item 2. Changes In Securities.
Inapplicable.
Item 3. Defaults Upon Senior Securities.
Inapplicable.
Item 4. Submission Of Matters To A Vote Of Security Holders.
Inapplicable.
Item 5. Other Information.
Inapplicable.
Item 6. Exhibits And Reports On Form 8-K.
(a) Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, September 30, 1996 and December 31,
1995.
Statement of changes in partners' capital for the nine
month period ended September 30, 1996.
Statements of operations for the nine and three month
periods ended September 30, 1996 and 1995.
Statements of cash flows for the nine and three month
periods ended September 30, 1996 and 1995.
Notes to the Financial Statements
2. Financial Statement Schedules
All other schedules for which provision is made in the
applicable accounting regulations of the Securities
and Exchange Commission are not required under the
related instructions or are inapplicable, and
therefore have been omitted.
(b) Report on Form 8-K
None
Page 15
<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.
Date:
November 11, 1996
ATEL CASH DISTRIBUTION FUND VI, L.P.
(Registrant)
By: ATEL Financial Corporation
General Partner of Registrant
By: /s/ A. J. BATT
--------------------------------------
A. J. Batt
President and Chief Executive Officer
of General Partner
By: /s/ DEAN L. CASH
--------------------------------------
Dean L. Cash
Executive Vice President of General
Partner
By: /s/ F. RANDALL BIGONY
--------------------------------------
F. Randall Bigony
Principal financial officer of
registrant
By: /s/ DONALD E. CARPENTER
--------------------------------------
Donald E. Carpenter
Principal accounting officer of
registrant
Page 16
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0
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