UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the fiscal quarter ended March 31, 1998
[ ] 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 33-83216-01
-----------------------
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(Exact name of registrant as specified in its charter)
Delaware 94-3209289
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Market, Steuart Street Tower
Suite 800, San Francisco, CA 94105-1301
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (415) 974-1399
-----------------------
Indicate by 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
<PAGE>
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(A Delaware Limited Liability Company)
BALANCE SHEETS
(in thousands of dollars, except unit amounts)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
----------------------------------------
<S> <C> <C>
Assets:
Equipment held for operating leases, at cost $ 90,457 $ 79,132
Less accumulated depreciation (29,691) (26,749)
----------------------------------------
Net equipment 60,766 52,383
Cash and cash equivalents 10,825 19,179
Investment in unconsolidated special-purpose entities 25,829 26,252
Accounts receivable, less allowance for doubtful accounts
of $46 in 1998 and $70 in 1997 1,657 2,026
Deposit on equipment -- 920
Prepaid expenses 296 341
Deferred charges, less accumulated amortization
of $265 in 1998 and $238 in 1997 354 381
----------------------------------------
Total assets $ 99,727 $ 101,482
========================================
Liabilities and members' equity:
Liabilities:
Accounts payable and accrued expenses $ 925 $ 594
Due to affiliates 184 2,005
Lessee deposits and reserves for repairs 1,691 1,409
Note payable 25,000 25,000
----------------------------------------
Total liabilities 27,800 29,008
----------------------------------------
Members' equity:
Class A members (4,999,581 units as of March 31, 1998
and December 31, 1997) 71,814 72,298
Class B member 113 176
----------------------------------------
Total members' equity 71,927 72,474
----------------------------------------
Total liabilities and members' equity $ 99,727 $ 101,482
========================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(A Delaware Limited Liability Company)
STATEMENTS OF OPERATIONS
For the Three Months Ended March 31,
(in thousands of dollars, except weighted-average unit amounts)
<TABLE>
<CAPTION>
1998 1997
-------------------------------
<S> <C> <C>
Revenues
Lease revenue $ 4,294 $ 3,517
Interest and other income 197 48
Net gain on disposition of equipment 28 4
-------------------------------
Total revenues 4,519 3,569
-------------------------------
Expenses
Depreciation and amortization 2,982 3,577
Repairs and maintenance 265 269
Equipment operating expenses 238 242
Interest expense 458 46
Insurance expense to affiliate (3 ) 7
Other insurance expense 50 53
Management fees to affiliate 237 233
General and administrative expenses
to affiliates 194 353
Other general and administrative expenses 161 122
-------------------------------
Total expenses 4,582 4,902
-------------------------------
Equity in net income of unconsolidated
special-purpose entities 2,457 137
-------------------------------
Net income (loss) $ 2,394 $ (1,196 )
===============================
Members' share of net income (loss)
Class A members $ 2,016 $ (1,599 )
Class B member 378 403
-------------------------------
Total $ 2,394 $ (1,196 )
===============================
Net income (loss) per weighted-average
Class A unit (4,999,581 units as of
March 31, 1998 and 1997) $ 0.40 $ (0.32 )
===============================
Cash distributions $ 2,941 $ 2,941
===============================
Cash distributions per weighted-average
Class A units $ 0.50 $ 0.50
===============================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(A Delaware Limited Liability Company)
STATEMENTS OF CHANGES IN MEMBERS' EQUITY For
the period from December 31, 1996 to March 31, 1998
(in thousands of dollars)
<TABLE>
<CAPTION>
Class A Class B Total
-------------------------------------------------------------
<S> <C> <C> <C>
Members' equity as of December 31, 1996 $ 86,024 $ 265 $ 86,289
Net income (loss) (3,728) 1,676 (2,052 )
Cash distributions (9,998) (1,765) (11,763 )
-------------------------------------------------------------
Members' equity as of December 31, 1997 72,298 176 72,474
Net income 2,016 378 2,394
Cash distributions (2,500) (441) (2,941 )
-------------------------------------------------------------
Members' equity as of March 31, 1998 $ 71,814 $ 113 $ 71,927
=============================================================
</TABLE>
See accompanying notes to financial
statements.
<PAGE>
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(A Delaware Limited Liability Company)
STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31,
(in thousands of dollars)
<TABLE>
<CAPTION>
1998 1997
-------------------------------------------
<S> <C> <C>
Operating activities
Net income (loss) $ 2,394 $ (1,196)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 2,982 3,577
Net gain on disposition of equipment (28) (4)
Equity in net income of unconsolidated
special-purpose entities (2,457) (137)
Changes in operating assets and liabilities:
Accounts receivable, net 421 (292)
Prepaid expenses 45 128
Accounts payable and accrued expenses 331 196
Due to affiliates (28) 60
Lessee deposits and reserves for repairs 282 285
-------------------------------------------
Net cash provided by operating activities 3,942 2,617
-------------------------------------------
Investing activities
Payments for purchase of equipment and capital
improvements (10,442) (10,530)
Investment in and equipment purchased and placed
in unconsolidated special-purpose entities (6,143) (5,100)
Liquidation distributions from unconsolidated
special-purpose entities 4,707 --
Proceeds from disposition of equipment -- 26
Distributions from unconsolidated special-purpose
entities 4,316 3,260
-------------------------------------------
Net cash used in investing activities (7,562) (12,344)
-------------------------------------------
Financing activities
Proceeds from note payable -- 25,000
Payment due to affiliates (1,793) --
Cash distributions to Class A members (2,500) (2,500)
Cash distributions to Class B Member (441) (441)
Payments of debt placement fees -- (177)
-------------------------------------------
Net cash (used in) provided by financing activities (4,734) 21,882
-------------------------------------------
Net (decrease) increase in cash and cash equivalents (8,354) 12,155
Cash and cash equivalents at beginning of period 19,179 1,692
-------------------------------------------
Cash and cash equivalents at end of period $ 10,825 $ 13,847
===========================================
Supplemental information
Interest paid $ -- $ --
===========================================
Sale proceeds included in accounts receivable $ 52 $ --
===========================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(A Delaware Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
1. Opinion of Management
In the opinion of the management of PLM Financial Services, Inc. (the
Manager), the accompanying unaudited financial statements contain all
adjustments necessary, consisting primarily of normal recurring accruals,
to present fairly the financial position of Professional Lease Management
Income Fund I, L.L.C. (Fund I or the Company) as of March 31, 1998 and
December 31, 1997, the statements of operations for the three months ended
March 31, 1998 and 1997, the statements of changes in members' equity for
the period from December 31, 1996 to March 31, 1998, and the statements of
cash flows for the three months ended March 31, 1998 and 1997. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted from the accompanying financial
statements. For further information, reference should be made to the
financial statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1997, on file with the
Securities and Exchange Commission.
2. Net Income (Loss) and Cash Distributions
After giving effect to the special allocations set forth in Sections
3.08(b) and 3.17 of the Company's operating agreement, net profits and net
loss are allocated 1% to the Class B member and 99% to the Class A members.
During the three months ended March 31, 1998, the Manager received a
special allocation of income of $0.4 million.
Cash distributions are recorded when paid and totaled $2.9 million for the
three months ended March 31, 1998 and 1997. Cash distributions to Class A
unitholders in excess of net income are considered to represent a return of
capital. Cash distributions to Class A unitholders of $0.5 million and $2.5
million for the three months ended March 31, 1998 and 1997, respectively,
were deemed to be a return of capital. Cash distributions related to the
results from the first quarter of 1998, of $1.7 million, were paid during
the second quarter of 1998.
3. Transactions with Manager and Affiliates
Company management fees of $0.2 million were payable as of March 31, 1998
and December 31, 1997. The Company's proportional share of management fees
affiliated with unconsolidated special- purpose entities (USPEs) of $44,000
and $24,000 were payable as of March 31, 1998 and December 31, 1997,
respectively.
The Company's proportional share of the affiliated expenses incurred by the
USPEs during 1998 and 1997 is listed in the following table (in thousands
of dollars):
For the Three Months
Ended March 31,
1998 1997
-------------------------------
Management fees $ 87 $ 85
Data processing and administrative
Expenses 31 19
Insurance expense 1 4
Transportation Equipment Indemnity Company, Ltd. (TEI), an affiliate of the
Manager, provided certain marine insurance coverage for Company equipment
and other insurance brokerage services during 1998 and 1997. TEI did not
provide the same insurance coverage during 1998 as had been provided during
1997. These services were provided by an unaffiliated third party.
<PAGE>
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(A Delaware Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
4. Equipment
The components of equipment held for operating lease are as follows (in
thousands of dollars):
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
-------------------------------------------
<S> <C> <C>
Marine vessels $ 29,957 $ 20,756
Aircraft 25,783 24,605
Rail equipment 19,919 18,958
Trailers 14,798 14,813
-------------------------------------------
90,457 79,132
Less accumulated depreciation (29,691) (26,749)
-------------------------------------------
Net equipment $ 60,766 $ 52,383
===========================================
</TABLE>
During the three months ended March 31, 1998, the Company purchased 39
railcars, a marine vessel (a deposit of $0.9 million was lodged in December of
1997 for the purchase of the marine vessel) and a hush kit for an aircraft for a
total of $11.3 million. During the three months ended March 31, 1997, the
Company purchased a mobile offshore drilling unit for $10.5 million.
During the three months ended March 31, 1998, the Company sold a trailer
and a railcar with a net book value of $24,000, for proceeds of $52,000. During
the three months ended March 31, 1997, the Company sold trailers with a net book
value of $22,000, for proceeds of $26,000.
As of March 31, 1998, all equipment was either on lease or operating in
PLM-affiliated short-term trailer rental facilities, except for one railcar with
a carrying value of $15,000. As of December 31, 1997, all equipment was either
on lease or operating in PLM-affiliated short-term trailer rental facilities,
except for one railcar with a carrying value of $22,000.
<PAGE>
PROFESSIONAL LEASE MANAGEMENT INCOME FUND I, L.L.C.
(A Delaware Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
5. Investments in Unconsolidated Special-Purpose Entities
The net investments in unconsolidated special-purpose entities included the
following jointly-owned equipment (and related assets and liabilities) (in
thousands of dollars):
<TABLE>
<CAPTION>
March 31, December 31,
% Ownership Equipment 1998 1997
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
61% Mobile offshore drilling unit $ 9,528 $ 9,766
50% Trust consisting of MD DC9-82 stage III 5,896 682
commercial aircraft
33% Two trusts consisting of:
Three 737-200A Stage II
commercial aircraft
Two stage II JT8D aircraft engines
Portfolio of rotable components 4,863 7,788
25% Trust consisting of four 737-200A
stage II commercial aircraft -- 3,163
45% Trust consisting of two 737-200A
stage II commercial aircraft 2,979 --
50% Cargo marine vessel 2,405 2,638
25% Trust consisting of six 737-200A
stage II commercial aircraft 158 2,215
Total investments $ 25,829 $ 26,252
==============================================
</TABLE>
The Company has interests in two USPEs that own multiple aircraft (the
Trusts). These Trusts contain provisions under certain circumstances for
allocating specific aircraft to the beneficial owners. During the first quarter
of 1998, PLM Equipment Growth Fund VI and PLM Equipment Growth & Income Fund VII
each sold the interest in the aircraft designated to it. The result for the
Company was to restate the ownership in this Trust from 25% to 45%. During the
three months ended March 31, 1998, an affiliated program increased its
investment in this Trust by funding a hushkit to a specific aircraft. This
change has no effect on the income or loss recognized in the first quarter of
1998.
For the second Trust, the Company and an affiliated program each sold the
aircraft designated to it during the first quarter of 1998. This change had no
effect on net income or loss in 1997 and in the first quarter of 1998. The
Company's 25% interest in the Trust owning the commercial aircraft was sold for
proceeds of $4.7 million.
During the first quarter ended March 31, 1998, the Company purchased a 50%
interest in an MD DC-9-82 Stage III commercial aircraft for $6.8 million (a
deposit of $0.7 million was lodged in December of 1997).
6. Subsequent Event
On May 1, 1998, the Company purchased an interest in an trust owning an
MD-82 commercial aircraft for $7.4 million, the remaining interest in this trust
is an affiliated program.
-7-
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(I) RESULTS OF OPERATIONS
Comparison of the Company's Operating Results for the Three Months Ended March
31, 1998 and 1997
(A) Owned Equipment Operations
Lease revenues less direct expenses on owned equipment (defined as repairs and
maintenance, equipment operating expenses, and asset-specific insurance
expenses) on owned equipment increased during the first quarter of 1998,
compared to the same quarter of 1997. The following table presents lease
revenues less direct expenses by owned equipment type (in thousands of dollars):
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1998 1997
-------------------------------
<S> <C> <C>
Aircraft $ 1,252 $ 1,252
Marine vessels 973 215
Rail equipment 871 700
Trailers 676 713
Mobile offshore drilling unit -- 71
</TABLE>
Aircraft: Aircraft lease revenues and direct expenses were $1.3 million and
$13,000, respectively, for the first quarter of 1998, compared to $1.3 million
and $0, respectively, during the same quarter of 1997. Aircraft contribution
remained the same due to the relative stability of the aircraft fleet.
Marine vessels: Marine vessel lease revenues and direct expenses were $1.3
million and $0.3 million, respectively, for the first quarter of 1998, compared
to $0.6 million and $0.4 million, respectively, during the same quarter of 1997.
Marine vessel lease revenue increased due to the purchase of a marine vessel in
the first quarter of 1998 and another vessel at the end of the second quarter of
1997. Direct expenses decreased in the first quarter of 1998 compared to the
same period in 1997, due to lower marine operating expenses for a marine vessel.
Rail equipment: Railcar lease revenues and direct expenses were $1.0 million and
$0.1 million, respectively, for the first quarter of 1998, compared to $0.8
million and $0.1 million, respectively, during the same quarter of 1997. Railcar
contribution increased due to the purchase of 39 railcars in the first quarter
of 1998.
Trailers: Trailer revenues and direct expenses were $0.8 million and $0.1
million, respectively, for the first quarter of 1998 and 1997. Trailer
contribution remained approximately the same due to the relative stability of
the trailer fleet.
Mobile offshore drilling unit (rig): Revenues and direct expenses were $0.1
million and $0, respectively, during the first quarter of 1997. This rig was
sold in the fourth quarter of 1997 as part of the original purchase agreement
that gave the charterers the option to purchase the rig. The Company did not own
any rigs in the first quarter of 1998.
(B) Interest and Other Income
Interest and other income increased $0.1 million due to higher average cash
balances in the first quarter of 1998, compared to the same period in 1997.
<PAGE>
(C) Indirect Expenses Related to Owned Equipment Operations
Total indirect expenses of $4.0 million for the quarter ended March 31, 1998
decreased from $4.3 million for the same period in 1997. Significant variances
are explained as follows:
(1) A $0.6 million decrease in depreciation and amortization expenses from
1997 levels reflects the Company's double-declining balance depreciation method
and the effect of the sale of the mobile offshore drilling unit at the end of
1997, which was partially offset by the purchase of equipment during 1997 and
the first quarter of 1998.
(2) A $0.1 million decrease in administrative expenses from 1997 levels
resulted from decreased administrative costs associated with the short-term
trailer rental facilities in the first quarter of 1998, compared to the same
period in 1997.
(3) A $0.4 million increase in interest expense was due to higher average
outstanding borrowings in the first quarter of 1998 compared to the same period
in 1997.
(D) Net Gain on Disposition of Owned Equipment
Net gain on disposition of equipment for the first quarter of 1998 totaled
$28,000 which resulted from the sale of a railcar and a trailer with a net book
value of $24,000, for proceeds of $52,000. Net gain on disposition of equipment
for the first quarter of 1997 totaled $4,000 which resulted from the sale of
trailers with a net book value of $22,000, for proceeds of $26,000.
(E) Equity in Net Income (Loss) of Unconsolidated Special-Purpose Entities
Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity method are presented as follows (in thousands of dollars).
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1998 1997
-------------------------------
<S> <C> <C>
Aircraft $ 2,440 $ 448
Mobile offshore drilling unit 143 (264 )
Marine vessel (126) (47 )
Equity in Net Income (Loss) of USPEs $ 2,457 $ 137
================================
</TABLE>
Aircraft: As of March 31, 1998, the Company owned an interest in a trust that
owns two commercial aircraft, an interest in a trust that owns a commercial
aircraft, and an interest in two trusts that own three commercial aircraft, two
aircraft engines, and a portfolio of aircraft rotables. As of March 31, 1997,
the Company owned an interest in a trust that owns six commercial aircraft, an
interest in another trust that owns four commercial aircraft, and an interest in
two trusts that own three commercial aircraft, two aircraft engines, and a
portfolio of aircraft rotables. During the first quarter of 1998, aircraft
revenues were $1.3 million and the gain from the sale of the Company's interest
in a trust that owned four commercial aircraft of $2.7 million was offset by
expenses of $1.6 million. During the same period in 1997, revenues and expenses
were $1.6 million and $1.2 million, respectively. Aircraft contribution
increased due to the purchase of an interest in a trust that owns a commercial
aircraft in the first quarter of 1998, which was partially offset by a decrease
in contribution due to the sale of the Company's interest in a trust that owned
four commercial aircraft in the first quarter of 1998.
Mobile offshore drilling unit: As of March 31, 1998 and 1997, the Company had an
interest in an entity that owns a mobile offshore drilling unit (rig). Mobile
offshore drilling unit revenues and expenses were $0.6 million and $0.4 million,
respectively, for the first quarter of 1998, compared to $0.3 million and $0.6
million, respectively, during the same quarter of 1997. Rig contribution
increased in the first quarter of 1998 compared to the same period in 1997 due
to the increase of the Company's interest in this investment from 35% to 61%
during the first quarter of 1997.
Marine vessel: As of March 31, 1998 and 1997, the Company had an interest in an
entity that owns a marine vessel. Marine vessel revenues and expenses were $0.3
million and $0.4 million, respectively, for the first quarter of 1998, compared
to $0.3 million and $0.3 million, respectively, during the same period in 1997.
Expenses increased in the first quarter of 1998 compared to the same period in
1997, due to repairs needed on this marine vessel.
(F) Net Income (Loss)
As a result of the foregoing, the Company had a net income of $2.4 million for
the first quarter of 1998, compared to a net loss of $1.2 million during the
same period of 1997. The Company's ability to operate and liquidate assets,
secure leases, and re-lease those assets whose leases expire is subject to many
factors, and the Company's performance in the first quarter of 1998 is not
necessarily indicative of future periods. In the first quarter of 1998, the
Company distributed $2.5 million to Class A members, or $0.50 per
weighted-average Class A unit.
(II) FINANCIAL CONDITION -- CAPITAL RESOURCES AND LIQUIDITY
For the three months ended March 31, 1998, the Company generated sufficient
operating cash (net cash provided by operating activities plus distributions
from the unconsolidated special-purpose entities) to meet its operating
obligations and pay distributions to Class A and Class B unitholders.
During the three months ended March 31, 1998, the Company purchased 39 railcars,
a marine vessel (a deposit of $0.9 million was lodged in December of 1997 for
the purchase of the marine vessel), and a hush kit for an aircraft for a total
of $11.3 million.
The Manager has entered into a short-term joint $50.0 million credit facility.
As of May 14, 1998, PLM Equipment Growth Fund V had $1.6 million in outstanding
borrowings and American Finance Group, Inc., a wholly owned subsidiary of PLM
International, Inc., had $37.6 million in outstanding borrowings. No other
eligible borrower had any outstanding borrowings.
(III) YEAR 2000 COMPLIANCE
The Manager is currently addressing the year 2000 computer software issue and is
creating a timetable for carrying out any program modifications that may be
required. The Manager does not anticipate that the cost of those modifications
allocable to the Company will be material.
(IV) ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board issued two new
statements: SFAS No. 130, "Reporting Comprehensive Income," which requires
enterprises to report, by major component and in total, all changes in equity
from nonowner sources; and SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information," which establishes annual and interim
reporting standards for a public company's operating segments and related
disclosures about its products, services, geographic areas, and major customers.
Both statements are effective for the Partnership's fiscal year ended December
31, 1998, with earlier application permitted. The effect of adoption of these
statements will be limited to the form and content of the Partnership's
disclosures and will not impact the Partnership's results of operations, cash
flow, or financial position.
<PAGE>
(V) OUTLOOK FOR THE FUTURE
Several factors may affect the Company's operating performance in 1998 and
beyond, including changes in the markets for the Company's equipment and changes
in the regulatory environment in which the equipment operates.
The Company's operation of a diversified equipment portfolio in a broad base of
markets is intended to reduce its exposure to volatility in individual equipment
sectors.
The ability of the Company to realize acceptable lease rates on its equipment in
the different equipment markets is contingent on many factors, such as specific
market conditions and economic activity, technological obsolescence, and
government or other regulations. The unpredictability of some of these factors,
or of their occurrence, makes it difficult for the Manager to clearly define
trends or influences that may impact the performance of the Company's equipment.
The Manager continually monitors both the equipment markets and the performance
of the Company's equipment in these markets. The Manager may decide to reduce
the Company's exposure to equipment markets if it determines that it cannot
operate equipment to achieve acceptable rates of return. Alternatively, the
Manager may make a determination to enter equipment markets in which it
perceives opportunities to profit from supply/demand instabilities or other
market imperfections.
The Company intends to use excess cash flow, after payment of expenses, the
maintenance of working capital reserves, and cash distributions, to acquire
additional equipment during the first six years of the Company's operations. The
Manager believes these acquisitions may cause the Company to generate additional
earning and cash flow for the Company.
The Company relies on operating cash flow to meet its operating obligations,
maintain working capital reserves, make cash distributions to Class A and B
unitholders, and grow the Company's equipment portfolio through reinvestment of
any remaining surplus cash available in additional equipment.
(VI) FORWARD-LOOKING INFORMATION
Except for the historical information contained herein, the discussion in this
Form 10-Q contains forward-looking statements that involve risks and
uncertainties, such as statements of the Company's plans, objectives,
expectations, and intentions. The cautionary statements made in this Form 10-Q
should be read as being applicable to all related forward-looking statements
wherever they appear in this Form 10-Q. The Company's actual results could
differ materially from those discussed here.
(This space intentionally left blank.)
<PAGE>
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
<PAGE>
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.
PROFESSIONAL LEASE MANAGEMENT
INCOME FUND I, L.L.C.
By: PLM Financial Services, Inc.
Manager
Date: May 14, 1998 By: /s/ Richard K Brock
---------------------
Richard K Brock
Vice President and
Corporate Controller
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 10,825
<SECURITIES> 0
<RECEIVABLES> 1,703
<ALLOWANCES> 46
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 90,457
<DEPRECIATION> 29,691
<TOTAL-ASSETS> 99,727
<CURRENT-LIABILITIES> 0
<BONDS> 25,000
0
0
<COMMON> 0
<OTHER-SE> 71,927
<TOTAL-LIABILITY-AND-EQUITY> 99,727
<SALES> 0
<TOTAL-REVENUES> 4,519
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,124
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 458
<INCOME-PRETAX> 2,394
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,394
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,394
<EPS-PRIMARY> 0.40
<EPS-DILUTED> 0.40
</TABLE>
