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 period ended June 30, 1998
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[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from to
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Commission File Number 33-94458
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ICON Cash Flow Partners L.P. Seven
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3835387
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(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
600 Mamaroneck Avenue, Harrison, New York 10528-1632
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(Address of principal executive offices) (Zip code)
(914) 698-0600
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Registrant's telephone number, including area code
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.
[ x ] Yes [ ] No
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Consolidated Balance Sheets
(unaudited)
<TABLE>
June 30, December 31,
1998 1997
Assets
<S> <C> <C>
Cash $ 3,264,973 $ 4,516,385
-------------- -------------
Investment in finance leases
Minimum rents receivable 139,526,265 89,824,617
Estimated unguaranteed residual values 76,356,456 33,168,213
Initial direct costs 5,013,093 2,851,751
Unearned income (45,892,615) (23,581,783)
Allowance for doubtful accounts (550,000) (155,000)
-------------- -------------
174,453,199 102,107,798
Investment in estimated unguaranteed residual values 26,531,664 26,531,664
-------------- -------------
Net investment in leveraged leases 11,845,650 11,146,488
-------------- -------------
Equity investment in joint ventures 2,261,808 1,828,454
-------------- -------------
Investment in financings
Receivables due in installments 884,498 906,283
Initial direct costs 15,855 16,480
Unearned income (192,281) (197,918)
Allowance for doubtful accounts (27,222) (22,222)
-------------- -------------
680,850 702,623
Accounts receivable - General Partner and affiliates, net 259,265 -
-------------- ------------
Other assets 998,415 1,046,030
-------------- -------------
Total assets $ 220,295,824 $ 147,879,442
============== =============
</TABLE>
(continued on next page)
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Balance Sheets (Continued)
<TABLE>
June 30, December 31,
1998 1997
Liabilities and Partners' Equity
<S> <C> <C>
Notes payable - non-recourse $ 141,868,975 $ 90,575,890
Note payable - recourse 9,868,054 10,075,000
Accounts payable - other 354,439 238,586
Security deposits and deferred credits 161,548 29,162
Accounts payable-equipment 48,687 1,011,196
Minority interest in joint venture 22,575 20,335
Accounts payable - General Partner and affiliates - 28,150
-------------- --------------
152,324,278 101,978,319
Commitments and Contingencies
Partners' equity (deficiency)
General Partner (53,319) (23,323)
Limited partners (857,628.88 and 559,842.19 units
outstanding, $100 per unit original
issue price in 1998 and 1997, respectively) 68,024,865 45,924,446
-------------- --------------
Total partners' equity 67,971,546 45,901,123
-------------- --------------
Total liabilities and partners' equity $ 220,295,824 $ 147,879,442
============== ==============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Consolidated Statements of Operations
(unaudited)
<TABLE>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
---- ---- ---- ----
Revenues
<S> <C> <C> <C> <C>
Finance income $ 3,018,746 $ 1,320,681 $ 5,583,648 $2,420,206
Income from leveraged leases, net 354,253 371,683 699,162 752,313
Income from equity investment
in joint ventures 161,846 133,925 255,379 154,733
Interest income and other 74,693 16,342 167,512 40,507
Net gain on sales or remarketing
of equipment 8,087 6,289 8,087 39,180
------------ ------------ ----------- ----------
Total revenues 3,617,625 1,848,920 6,713,788 3,406,939
------------ ------------ ----------- ----------
Expenses
Interest 1,536,428 915,035 3,067,666 1,489,576
Management fees - General Partner 613,753 310,152 1,092,054 667,629
Amortization of initial direct costs 399,314 295,312 822,640 605,921
Administrative expense
reimbursements - General Partner 262,604 137,178 470,152 288,372
Provision for bad debts 250,000 75,000 400,000 75,000
General and administrative 168,160 71,789 225,396 109,350
Minority interest in joint venture 1,124 1,085 2,240 2,179
------------ ------------ ----------- ----------
Total expenses 3,231,384 1,805,551 6,080,148 3,238,027
------------ ------------ ----------- ----------
Net income $ 386,241 $ 43,369 $ 633,640 $ 168,912
============ ============ =========== ==========
Net income allocable to:
Limited partners $ 382,379 $ 42,935 $ 627,304 $ 167,223
General Partner 3,862 434 6,336 1,689
------------ ------------ ----------- ----------
$ 386,241 $ 43,369 $ 633,640 $ 168,912
============ ============ =========== ==========
Weighted average number of limited
partnership units outstanding 813,275 371,828 747,141 343,141
============ ============ =========== ==========
Net income per weighted average
limited partnership unit $ .48 $ .12 $ .84 $ .49
============ ============ =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Consolidated Statements of Changes in Partners' Equity
For the Six Months Ended June 30, 1998, the Years Ended December 31, 1997
and 1996 and the Period from May 23, 1995 (date of inception) to
December 31, 1995
(unaudited)
<TABLE>
Limited Partner Distributions
Return of Investment Limited General
Capital Income Partners Partner Total
(Per weighted average unit)
<S> <C> <C> <C> <C> <C>
Initial partners'
capital contribution
- May 23, 1995 $ 1,000 $ 1,000 $ 2,000
------------ ---------- -----------
Balance at
December 31, 1995 1,000 1,000 2,000
Refund of initial
limited partners'
capital contribution (1,000) - (1,000)
Proceeds from issuance
of limited partnership
units (275,540.47 units) 27,554,047 - 27,554,047
Sales and
offering expenses (3,719,796) - (3,719,796)
Cash distributions
to partners $ 8.18 $ 2.57 (1,361,099) (13,749) (1,374,848)
Net income 401,396 4,055 405,451
------------ ---------- -----------
Balance at
December 31, 1996 22,874,548 (8,694) 22,865,854
Proceeds from issuance
of limited partnership
units (285,927.35 units) 28,592,735 - 28,592,735
Sales and
offering expenses (3,862,277) - (3,862,277)
Limited partnership units
redeemed (1,625.63 units) (155,815) - (155,815)
</TABLE>
(continued on next page)
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Statements of Changes in Partners' Equity (Continued)
For the Six Months Ended June 30, 1998, the Years Ended December 31, 1997
and 1996 and the Period from May 23, 1995 (date of inception) to
December 31, 1995
(unaudited)
<TABLE>
Limited Partner Distributions
Return of Investment Limited General
Capital Income Partners Partner Total
(Per weighted average unit)
<S> <C> <C> <C> <C> <C>
Cash distributions
to partners $ 4.41 $ 6.34 (4,147,829) (41,125) (4,188,954)
Net income 2,623,084 26,496 2,649,580
------------ ---------- -----------
Balance at
December 31, 1997 45,924,446 (23,323) 45,901,123
Proceeds from issuance
of limited partnership
units (298,386.69 units) 29,838,669 - 29,838,669
Sales and offering expenses (4,028,220) - (4,028,220)
Cash distributions to partners $ 4.59 $ .79 (4,289,724) (36,332) (4,326,056)
Limited partnership units
redeemed (600 units) (47,610) - -
Net income 627,304 6,336 633,640
------------ ---------- -----------
Balance at June 30, 1998 $ 68,024,865 $ (53,319) $67,971,546
============ =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows
For the Six Months Ended June 30,
(unaudited)
<TABLE>
1998 1997
---- ----
Cash flows from operating activities:
<S> <C> <C>
Net income $ 633,640 $ 168,912
------------- ------------
Adjustments to reconcile net income to
net cash provided by operating activities:
Finance income portion of receivables paid directly
to lenders by lessees (4,730,591) (2,190,935)
Amortization of initial direct costs 822,640 605,921
Gain on sale of equipment (8,087) (39,180)
Interest expense on non-recourse financing paid
directly by lessees 3,038,992 1,376,939
Collection of principal - non-financed receivables 300,489 477,046
Allowance for doubtful accounts 400,000 75,000
Distribution from equity investment in joint venture 163,156 397,564
Income from equity investment in joint venture (255,379) (154,733)
Income from leveraged leases, net (699,162) (752,313)
Change in operating assets and liabilities:
Accounts payable - General Partner and affiliates, net (28,150) (438,297)
Account receivable - General Partner and affiliates, net (259,265) -
Accounts payable - other 115,853 13,346
Security deposits and deferred credits 132,386 8,725
Minority interest in joint venture 2,240 2,179
Other assets (61,070) (817,866)
Other, net (104,979) 208,355
------------- ------------
Total adjustments (1,170,927) (1,228,249)
------------- ------------
Net cash used in operating activities (537,287) (1,059,337)
------------- ------------
Cash flows from investing activities:
Equipment and receivables purchased (18,583,362) (8,917,036)
Initial direct costs (2,730,941) (1,678,530)
Investment in joint venture (341,131) -
Proceeds from sale of equipment 65,963 1,986,542
------------- ------------
Net cash used in investing activities (21,589,472) (8,609,024)
------------- ------------
</TABLE>
(continued on next page)
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows (Continued)
For the Six Months Ended June 30,
(unaudited)
<TABLE>
1998 1997
---- ----
Cash flows from financing activities:
Issuance of limited partnership units,
<S> <C> <C>
net of offering expenses 25,810,449 10,226,311
Redeemed units (47,610) -
Proceeds from recourse notes payable 2,181,892 -
Principal payments on recourse debt (2,388,838) (2,150,000)
Cash distributions to partners (4,326,056) (1,702,255)
Principal payment on non-recourse notes (354,490) -
Proceeds from note payable affiliate - 4,250,000
------------- ------------
Net cash provided by financing activities 20,875,347 10,624,056
------------- ------------
Net increase (decrease) in cash (1,251,412) 955,695
Cash, beginning of period 4,516,385 698,301
------------- ------------
Cash, end of period $ 3,264,973 $ 1,653,996
============= ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows (Continued)
Supplemental Disclosure of Cash Flow Information
For the six months ended June 30, 1998 and 1997, non-cash activities
included the following:
<TABLE>
1998 1997
---- ----
Fair value of equipment and receivables
<S> <C> <C>
purchased for debt and payables $ (64,079,135) $(49,162,092)
Non-recourse notes payable assumed in
purchase price 64,030,448 49,162,092
Accounts payable - equipment 48,687 -
Principal and interest on direct
finance receivables paid directly
to lenders by lessees 15,421,865 11,138,659
Principal and interest on non-recourse
financing paid directly to lenders
by lessees (15,421,865) (11,138,659)
Decrease in investments in finance leases and financings
due to contributions to joint venture - 5,190,238
Increase in equity investment in joint venture - (5,190,238)
------------- ------------
$ - $ -
============= ===========
</TABLE>
Interest expense of $3,067,666 and $1,489,576 for the six months ended June
30, 1998 and 1997 consisted of interest expense on non-recourse financing paid
or accrued directly to lenders by lessees of $3,038,992 and $1,376,939,
respectively, and other interest of $28,674 and $112,637, respectively.
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
June 30, 1998
1. Basis of Presentation
The financial statements of ICON Cash Flow Partners L.P. Seven (the
"Partnership") have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission (the "SEC") and, in the opinion of
management, include all adjustments (consisting only of normal recurring
accruals) necessary for a fair statement of income for each period shown.
Certain information and footnote disclosures normally included in consolidated
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such SEC rules and
regulations. Management believes that the disclosures made are adequate to make
the information represented not misleading. The results for the interim period
are not necessarily indicative of the results for the full year. These
consolidated financial statements should be read in conjunction with the
consolidated financial statements and notes included in the Partnership's 1997
Annual Report on Form 10-K.
2. Net Investment in Leveraged Leases
In August 1996 the Partnership acquired, subject to a leveraged lease, the
residual interest in an aircraft. The aircraft is a McDonnell Douglas DC-10-30F
currently on lease to Federal Express. The purchase price was $40,973,585,
consisting of $6,000,000 in cash and $34,973,585 in non-recourse debt.
In December 1996 the Partnership acquired, subject to a leveraged lease,
the residual interest in an aircraft. The aircraft is a 1976 McDonnell Douglas
DC-10-30 currently on lease to Continental Airlines. The purchase price was
$11,320,923, consisting of $2,104,262 in cash and $9,216,661 in non-recourse
debt.
The net investment in leveraged leases as of June 30, 1998 consisted of the
following:
Non-cancelable minimum rents receivable (net of
principal and interest on non-recourse debt) $ -
Estimated unguaranteed residual values 24,818,001
Initial direct costs 1,100,878
Unearned income (14,073,229)
--------------
$ 11,845,650
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
3. Related Party Transactions
Fees and other expenses paid or accrued by the Partnership to the General
Partner or its affiliates for the six months ended June 30, 1998 and 1997 were
as follows:
1998 1997
---- ----
Underwriting commissions $ 596,773 $ 236,447 Charged to Equity
Organization and offering 1,044,353 413,781 Charged to Equity
Acquisition fees 2,852,838 1,678,530 Capitalized
Management fees 1,092,054 667,629 Charged to operations
Administrative expense
reimbursements 470,152 288,372 Charged to operations
---------- ----------
Total $6,056,170 $3,284,759
========== ==========
The Partnership and affiliates formed three joint ventures for the purpose
of acquiring and managing various assets. (See Note 4 for additional information
relating to the joint ventures.)
4. Investment in Joint Ventures
The Partnership Agreement allows the Partnership to invest in joint
ventures with other limited partnerships sponsored by the General Partner
provided that the investment objectives of the joint ventures are consistent
with that of the Partnership.
ICON Cash Flow L.L.C. III
In December 1996, the Partnership and an affiliate, ICON Cash Flow
Partners, L.P., Series E ("Series E") formed ICON Cash Flow Partners L.L.C. III
("ICON L.L.C. III"), for the purpose of acquiring and managing an aircraft. The
Partnership and Series E contributed 99% and 1% of the cash received for such
acquisitions, respectively, to ICON Cash Flow L.L.C.
III.
ICON Receivables 1997-A L.L.C.
In March 1997, the Partnership, ICON Cash Flow Partners, L.P. Series D
("Series D") and ICON Cash Flow Partners L.P. Six ("L.P. Six") contributed and
assigned equipment lease and finance receivables and residuals to ICON
Receivables 1997-A L.L.C. ("1997-A"), a special purpose entity created for the
purpose of originating new leases, managing existing contributed assets and
securitizing its portfolio.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
In September 1997, the Partnership, Series E and L.P. Six contributed and
assigned additional equipment lease and finance receivables and residuals to
1997-A. The Partnership, Series D, Series E and L.P. Six (collectively the
"1997-A Members") received a 19.97%, 17.81% 31.19% and 31.03% interest,
respectively, in 1997-A based on the present value of their related
contributions.
Information as to the unaudited financial position and results of operations of
1997-A as of and for the six months ended June 30, 1998 is summarized below:
June 30, 1998
Assets $41,416,083
Liabilities $35,235,264
Equity $ 6,180,819
===========
Six Months Ended
June 30, 1998
Net income $ 915,589
===========
ICON Receivables 1997-B L.L.C.
In August 1997, the Partnership, Series E and L.P. Six (collectively, the
"1997-B Members") formed ICON Receivables 1997-B L.L.C. ("1997-B"), a special
purpose entity created for the purpose of originating leases and securitizing
its portfolio. On July 30, 1998, 1997-B securitized substantially all of its
equipment leases and finance receivables and residuals. The net proceeds from
the securitization totaled $40,806,901, of which $30,930,921 was used to pay
down 1997-B's debt, and the remaining proceeds, after establishing reserves for
expenses, were distributed to the 1997-B Members based on their respective
interests. 1997-B became the beneficial owner of a trust. The trustee for the
trust is Manufacturers and Traders Trust Company ("M&T"). In conjunction with
this securitization, the portfolio as well as the General Partner's servicing
capabilities were rated by Duff & Phelps and Fitch, both nationally recognized
rating agencies. The General Partner, as servicer, is responsible for managing,
servicing, reporting on and administering the portfolio. 1997-B remits all
monies received from the portfolio to M&T. M&T is responsible for disbursing to
the noteholders their respective principal and interest and to 1997-B the excess
of cash collected over debt service from the portfolio. The 1997-B Members
receive their pro rata share of any excess cash on a monthly basis from 1997-B.
The Partnership, Series E and L.P. Six received 16.67%, 75.00% and 8.30%
interest, respectively, in 1997-B based on their contributions.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
Information as to the unaudited financial position and results of operations of
1997-B at June 30, 1998 is summarized below:
June 30, 1998
Assets $32,114,372
Liabilities $26,508,355
Equity $ 5,606,017
===========
Six Months Ended
June 30, 1998
Net income $ 436,309
===========
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
June 30, 1998
Item 2. General Partner's Discussion and Analysis of Financial Condition and
Results of Operations
ICON Cash Flow Partners L.P. Seven (the "Partnership") was formed on May 23,
1995 as a Delaware limited partnership. The Partnership commenced business
operations on its initial closing date. January 19, 1996, with the admission of
26,367.95 limited partnership units at $100 per units representing $2,636,795.17
of capital contributions. Between January 19, 1996 and December 31, 1996,
249,172.52 units were admitted representing $24,917,252 of capital
contributions. In 1997, 285,927.35 units were admitted representing $28,592,735
of capital contributions while 1,625.63 units were redeemed. From January 1,
1998 to June 30, 1998 298,386.69 units were admitted representing $29,838,669 of
capital contributions while 600.00 units were redeemed, bringing the total units
and capital subscriptions to 857,628.88 and $85,762,888, respectively.
The Partnership's portfolio consisted of a net investment in finance leases,
estimated unguaranteed residual value, leveraged leases, equity investment in
joint venture and financings representing 81%, 12%, 5%, 1% and 1% of total
investments at June 30, 1998, respectively and 71%, 13%, 10%, 5% and 1% at June
30, 1997, respectively.
Results of Operations
Three Months Ended June 30, 1998 and 1997
For the three months ended June 30, 1998 and 1997 the Partnership leased or
financed equipment with an initial cost of $35,217,661 and $12,121,225,
respectively to 146 and 6 lessees or equipment users respectively.
Revenue for the three months ended June 30, 1998 were $3,617,625,
representing an increase of $1,768,705 or 96% from 1997. The increase in
revenues resulted primarily from the increase in finance income of $1,698,065 ,
an increase in interest income and other of $58,353, an increase in income from
an equity investment in joint venture of $27,921 or 21%, and an increase in net
gain on sales or remarketing of equipment of $1,798 or 29%. These increases were
partially offset by a decrease in income from leveraged leases of $17,430 or 4%
from 1997. The increase in finance income resulted from the increase in the
average size of the portfolio from 1997 to 1998. Interest income and other
increased primarily as a result of the increase in the average cash balance from
1997 to 1998. Income from equity investment in joint ventures increased due to
the Partnership's increased investment in joint ventures.
Expenses for the three months ended June 30, 1998 were $3,231,384,
representing an increase of $1,425,833 or 79% from 1997. The increase in
expenses was due to an increase in interest expense of $621,393 or 68%, an
increase in management fees of $303,601 or 98%, an increase in provision of bad
debts of $175,000, an increase in administrative expense reimbursements of
$125,426 or 91%, an increase in administrative expense in amortization of
initial direct costs of $104,002 or 35%, an increase in general and
administrative expense of $96,372, and an increase in minority interest in joint
venture of $39 or 3%. Interest expense increased due to an increase in average
debt outstanding from 1997 to 1998. Management fees, administrative expense
reimbursement, amortization of initial direct costs and general and
administrative expense increased due to an increase in the average size of the
portfolio from 1997 to 1998. As a result of an analysis of delinquency, an
assessment of overall risk and a review of historical loss experience, it was
determined that a $250,000 provision for bad debts was required for the three
months ended June 30. 1998.
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
June 30, 1998
Net income for the three months ended June 30, 1998 and 1997 was $386,241
and $43,369, respectively. The net income per weighted average limited
partnership unit was $.48 and $.12, respectively.
Six Months Ended June 30, 1998 and 1997
For the six months ended June 30, 1998 and 1997 the Partnership leased or
financed equipment with an initial cost of $81,651,301 and $56,130,601,
respectively to 150 and 21 lessees or equipment users respectively. The weighed
average initial transaction term for each period was 54 and 51 months
respectively.
Revenues for the six months ended June 30, 1998 were $6,713,788,
representing an increase of $3,306,849 or 97% from 1997. The increase in
revenues resulted from an increase in finance income of $3,163,442, an increase
in interest income of $127,005 and an increase in income from equity investment
in joint venture of $100,646 or 65%. These increases were partially offset by a
decrease in net gain on sales or remarketing of equipment of $31,093 or 79% and
a decrease in income from leveraged leases of $53,151 or 7% from 1997. The
increase in finance income resulted from the increase in the average size of the
portfolio from 1997 and 1998. Interest income and other increased primarily as a
result of the increase in the average cash balance from 1997 to 1998. Income
from equity investment in joint venture increased due to the Partnership's
increased investment in joint ventures. The net gain on sales or remarketing of
equipment decreased due to a decrease in the number of leases maturing and the
underlying equipment being sold or remarketed for which proceeds received were
in excess of the remaining carrying value of the equipment.
Expenses for the six months ended June 30, 1998 were $6,080,148,
representing an increase of $2,842,121 or 88% from 1997. The increase in
expenses was due to the increase in interest expense of $1,578,090, an increase
in management fees of $424,425 or 64%, an increase in amortization of initial
direct costs of $216,719 or 36%, an increase in administrative expense
reimbursements of $181,780 or 63%, an increase in general and administrative
expense of $116,046, an increase in provision for bad debt of $325,000 and an
increase in minority interest in joint venture of $61 or 3%. Interest expense
increased due to an increase in the average debt outstanding from 1997 to 1998.
Management fees, amortization of initial direct costs, administrative expense
reimbursement and general and administrative expense increased due to an
increase in the average size of the portfolio from 1997 to 1998. As a result of
an analysis of delinquency, an assessment of overall risk and a review of
historical loss experience, it was determined that a $400,000 and $75,000
provision for bad debts was required for the six months ended June 30, 1998 and
1997, respectively.
Net income for the six months ended June 30, 1998 and 1997 was $633,640 and
$168,912, respectively. The net income per weighed average limited partnership
unit was $.84 and $.49, respectively.
Liquidity and Capital Resources
The Partnership's primary sources of funds for the six months ended June 30,
1998 and 1997 were capital contributions, net of offering expenses, of
$25,810,449 and $10,226,311, respectively. These funds were used to make
payments on borrowings, fund cash distributions and to purchase equipment. The
Partnership intends to purchase additional equipment and fund cash distributions
utilizing capital contributions cash provided by operations, proceeds from sales
of equipment and borrowings.
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
June 30, 1998
Cash distributions to limited partners for the six months ended June 30,
1998 and 1997, which were paid monthly, totaled $4,289,724 and $1,685,232,
respectively, of which $627,304 and $167,223 was investment income and
$3,662,420 and $1,518,009 was a return of capital, respectively. The monthly
annualized cash distribution rate to limited partners was 10.75% for 1998 and
1997, of which 1.57% and 1.1% was investment income and 9.18% and 9.65% was a
return of capital respectively, calculated as a percentage of each partner's
initial capital contribution. The limited partner distribution per weighted
average unit outstanding for the six months ended June 30, 1998 and 1997 was
$5.38, of which $.79 and $.49 was investment income and $4.59 and $4.89 was a
return of capital, respectively.
As of June 30, 1998, except as noted above, there were no known trends or
demands, commitments, events or uncertainties which are likely to have any
material effect on liquidity. As cash is realized from capital contributions,
operations, sales of equipment and borrowings, the Partnership will invest in
equipment leases and financings and fund cash distributions where it deems it to
be prudent while retaining sufficient cash to meet its reserve requirements and
recurring obligations as they become due.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed by the Partnership during the quarter ended
June 30, 1998.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
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.
ICON Cash Flow Partners L. P. Seven
File No. 33-94458 (Registrant)
By its General Partner,
ICON Capital Corp.
August 14, 1998 /s/ Gary N. Silverhardt
- ---------------- ----------------------------------------------
Date Gary N. Silverhardt
Chief Financial Officer
(Principal financial and account officer
of the General Partner of the Registrant)
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000947986
<NAME> ICON Cash Flow Partners L.P. Seven
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 3,264,973
<SECURITIES> 0
<RECEIVABLES> 189,624,942
<ALLOWANCES> 327,222
<INVENTORY> 0
<CURRENT-ASSETS> * 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 220,295,824
<CURRENT-LIABILITIES> ** 0
<BONDS> 151,737,029
0
0
<COMMON> 0
<OTHER-SE> 68,221,546
<TOTAL-LIABILITY-AND-EQUITY> 220,295,824
<SALES> 6,538,189
<TOTAL-REVENUES> 6,713,788
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,612,482
<LOSS-PROVISION> 150,000
<INTEREST-EXPENSE> 3,067,666
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 633,640
<EPS-PRIMARY> .74
<EPS-DILUTED> .74
<FN>
* The Partnership has an unclassified balance sheet in its financial
statements due to the nature of its industry. A value of "0" was used for
current assets and liabilities.
** The Partnership has an unclassified balance sheet in its financial
statements due to the nature of its industry. A value of "0" was used for
current assets and liabilities.
</FN>
</TABLE>
