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 March 31, 2000
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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
----------------------- ----------------------
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
incorporation or organization) Identification Number)
111 Church Street, White Plains, New York 10601-1505
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(Address of principal executive offices) (Zip code)
(914) 993-1700
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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>
March 31, December 31,
2000 1999
Assets
<S> <C> <C>
Cash ........................................................... $ 2,370,431 $ 4,688,025
------------- -------------
Investment in finance leases
Minimum rents receivable .................................... 36,029,205 54,878,965
Estimated unguaranteed residual values ...................... 71,873,504 67,880,746
Initial direct costs ........................................ 1,214,992 1,604,755
Unearned income ............................................. (16,835,636) (17,093,326)
Allowance for doubtful accounts ............................. (1,067,610) (1,067,610)
------------- -------------
91,214,455 106,203,530
Investment in estimated unguaranteed residual values ........... 31,718,541 31,718,541
------------- -------------
Net investment in leveraged leases ............................. 23,344,463 22,555,086
------------- -------------
Investment in financings
Receivables due in installments ............................. 1,991,832 2,062,546
Initial direct costs ........................................ 3,286 3,528
Unearned income ............................................. (418,957) (457,150)
Allowance for doubtful accounts ............................. (9,611) (9,611)
------------- -------------
1,566,550 1,599,313
Investments in unconsolidated joint ventures ................... 3,374,515 3,292,324
------------- -------------
Accounts receivable from General Partner and affiliates, net
Other assets ................................................... 1,787,086 1,950,469
------------- -------------
Total assets ................................................... $ 155,376,041 $ 172,007,288
============= =============
</TABLE>
(continued on next page)
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Consolidated Balance Sheets (Continued)
(unaudited)
<TABLE>
March 31, December 31,
2000 1999
Liabilities and Partners' Equity
<S> <C> <C>
Notes payable - non-recourse ......................... $ 56,313,792 $ 71,944,352
Note payable - recourse .............................. 26,635,034 28,599,963
Accounts payable - General Partner and affiliates, net 111,075 101,333
Security deposits, deferred credits and other payables 1,662,460 1,278,045
Minority interest in consolidated joint ventures ..... 2,289,721 38,457
------------- -------------
87,012,082 101,962,150
Commitments and Contingencies
Partners' equity (deficiency)
General Partner ................................... (173,773) (156,961)
Limited partners (990,238 units outstanding,
$100 per unit original issue price) ............. 68,537,732 70,202,099
------------- -------------
Total partners' equity .......................... 68,363,959 70,045,138
------------- -------------
Total liabilities and partners' equity ............... $ 155,376,041 $ 172,007,288
============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Consolidated Statements of Operations
For the Three Months Ended March 31,
(unaudited)
<TABLE>
2000 1999
---- ----
Revenues
<S> <C> <C>
Finance income ......................................... $3,845,396 $3,984,131
Income from leveraged leases ........................... 789,377 369,386
Income from investments in unconsolidated joint ventures 105,151 125,869
Interest income and other .............................. 17,511 8,597
Gain on sales of equipment ............................. 2,647 176,579
---------- ----------
Total revenues ......................................... 4,760,082 4,664,562
---------- ----------
Expenses
Interest ............................................... 1,792,258 1,801,892
Management fees - General Partner ...................... 840,769 603,424
Amortization of initial direct costs ................... 493,811 436,376
Administrative expense
reimbursements - General Partner ..................... 468,858 257,859
Provision for bad debts ................................ -- 200,000
General and administrative ............................. 156,594 116,196
Minority interest expense in consolidated joint venture 1,264 1,199
---------- ----------
Total expenses ......................................... 3,753,554 3,416,946
---------- ----------
Net income ................................................ $1,006,528 $1,247,616
========== ==========
Net income allocable to:
Limited partners ....................................... $ 996,463 $1,235,140
General Partner ........................................ 10,065 12,476
---------- ----------
$1,006,528 $1,247,616
========== ==========
Weighted average number of limited
partnership units outstanding .......................... 990,238 996,400
========== ==========
Net income per weighted average
limited partnership unit ............................... $ 1.01 $ 1.24
========== ==========
</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 Three Months Ended March 31, 2000 and
the Year Ended December 31, 1999
(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>
Balance at
December 31, 1998 $ 77,825,682 $ (84,234) $ 77,741,448
Limited partnership units
Redeemed (6,232 units) (425,558) - (425,558)
Cash distributions to partners $ 7.25 $ 3.50 (10,677,316) (107,872) (10,785,188)
Net income 3,479,291 35,145 3,514,436
------------ --------- ------------
Balance at
December 31, 1999 70,202,099 (156,961) 70,045,138
Cash distributions to partners $ 1.68 $ 1.01 (2,660,830) (26,877) (2,687,707)
Net income 996,463 10,065 1,006,528
------------ --------- ------------
Balance at March 31, 2000 $ 68,537,732 $(173,773) $ 68,363,959
============ ========= ============
</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 Three Months Ended March 31,
(unaudited)
<TABLE>
2000 1999
---- ----
Cash flows from operating activities:
<S> <C> <C>
Net income ....................................................... $ 1,006,528 $ 1,247,616
----------- -----------
Adjustments to reconcile net income to
net cash provided by operating activities:
Finance income portion of receivables paid directly
to lenders by lessees ....................................... (2,756,064) (3,350,056)
Interest expense on non-recourse financing paid
directly by lessees ......................................... 1,658,757 1,718,846
Interest accrued on notes-payable-recourse .................... (134,347) 48,674
Amortization of initial direct costs .......................... 493,811 436,376
Income from leveraged leases .................................. (789,377) (369,386)
Provision for bad debt ........................................ -- 200,000
Income from investments in unconsolidated joint venture ....... (105,151) (125,869)
Gain on sales of equipment .................................... (2,647) (176,579)
Change in operating assets and liabilities:
Collection of principal - non-financed receivables ........ 517,120 896,711
Distributions received from unconsolidated joint ventures .. 22,960 172,132
Investments in unconsolidated joint ventures ............... -- (35,430)
Other assets ............................................... 94,925 (28,051)
Security deposits, deferred credits and other payables ..... 384,414 270,849
Accounts payable to General Partner and affiliates, net .... -- (95,670)
Accounts receivable from General Partner and affiliates, net 9,742 (227,563)
Minority interest in consolidated joint venture ............ 1,264 9,905
Other ...................................................... 83,234 (321,271)
----------- -----------
Total adjustments ........................................ (521,359) (976,382)
----------- -----------
Net cash provided by operating activities ................... 485,169 271,234
----------- -----------
Cash flows from investing activities:
Equipment and receivables purchased .............................. (166,414) (504,740)
Proceeds from sale of equipment .................................. 10,239 769,046
Proceeds from sale of interest in joint venture .................. 2,250,000 --
----------- -----------
Net cash provided by investing activities .................. 2,093,825 264,306
----------- -----------
</TABLE>
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Consolidated Statements of Cash Flows (Continued)
For the Three Months Ended March 31,
(unaudited)
<TABLE>
2000 1999
---- ----
Cash flows from financing activities:
<S> <C> <C>
Proceeds from recourse debt ............................. 232,096 3,000,000
Principal payments on notes payable - recourse .......... (2,250,000) (2,250,000)
Principal payments on notes payable - non-recourse ...... (190,977) (133,142)
Cash distributions to partners .......................... (2,687,707) (2,705,167)
Redemption of limited partnership units ................. -- (13,155)
----------- -----------
Net cash provided by (used in) financing activities (4,896,588) (2,101,464)
----------- -----------
Net increase (decrease) in cash ............................ (2,317,594) (1,565,924)
Cash at beginning of period ................................ 4,688,025 3,899,054
----------- -----------
Cash at end of period ...................................... $ 2,370,431 $ 2,333,130
=========== ===========
</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 three months ended March 31, 2000 and 1999, non-cash activities
included the following:
2000 1999
---- ----
Principal and interest on direct
finance receivables paid directly
to lenders by lessees ............. $ 17,422,818 $ 8,631,488
Principal and interest on non-recourse
financing paid directly to lenders
by lessees ........................ (17,422,818) (8,631,488)
------------ ------------
$ -- $ --
============ ============
Interest expense of $1,792,258 and $1,801,892 for the three months ended
March 31, 2000 and 1999 consisted of interest expense on non-recourse financing
paid or accrued directly to lenders by lessees of $1,658,757 and $1,718,846,
respectively, interest on notes payable-recourse of $133,501 and $83,046,
respectively.
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements
March 31, 2000
(unaudited)
1. Basis of Presentation
The consolidated 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 1999
Annual Report on Form 10-K.
2. Redemption of Limited Partnership Units
There were no redemptions of limited partnership units during the three
months ended March 31, 2000. Redemption amounts are calculated following the
redemption formula specified in the Partnership Agreement. Redeemed units have
no voting rights and do not share in distributions. The Partnership Agreement
limits the number of units which can be redeemed in any one year and redeemed
units may not be reissued. Redeemed limited partnership units are accounted for
as a reduction from partners' equity.
3. Related Party Transactions
Fees and other expenses paid or accrued by the Partnership to the General
Partner or its affiliates for the three months ended March 31, 2000 and 1999
were as follows:
2000 1999
---- ----
Management fees $ 840,769 $603,424 Charged to Operations
Administrative expense
reimbursements 468,858 257,859 Charged to Operations
---------- --------
Total $1,309,627 $861,283
========== ========
The Partnership has formed six joint ventures with affiliates for the
purpose of acquiring and managing various assets. (See Note 5 for additional
information relating to the joint ventures.)
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
4. Net Investment in Leveraged Leases
The Partnership has ownership interests in two DC-10-30 aircraft subject to
leveraged leases with Continental Airlines, Inc. (through 2003) and Federal
Express (through 2004).
The net investment in the leveraged leases as of March 31, 2000 consisted of the
following:
Non-cancelable minimum rents receivable (net of
principal and interest on non-recourse debt) $ 10,002,726
Estimated unguaranteed residual values ........ 24,818,000
Initial direct costs .......................... 695,768
Unearned income ............................... (12,172,031)
------------
$ 23,344,463
Unearned income is recognized from leveraged leases over the life of the
lease at a constant rate of return based on the positive net investment in the
lease in years such investment is positive.
5. Investments in Joint Ventures
The Partnership and affiliates formed six joint ventures for the purpose of
acquiring and managing various assets.
The two joint ventures described below are majority owned and are
consolidated with the Partnership.
ICON Cash Flow Partners L.L.C. III
On December 31, 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 Cash Flow LLC III"), for the purpose of acquiring and managing an
aircraft currently on lease to Continental Airlines, Inc. The aircraft is a 1976
McDonnell Douglas DC-10-30 and cost $11,429,751. The lease is a leveraged lease
and the lease term expires in March 2003 (see Note 4). Profits, losses, excess
cash and disposition proceeds are allocated 99% to the Partnership and 1% to
Series E. The Partnership's financial statements include 100% of the assets and
liabilities of ICON Cash Flow LLC III. Series E's investment in ICON Cash Flow
LLC III has been reflected as "Minority interest in joint venture."
Rowan Joint Venture
In December 1996, the Partnership purchased for $12,325,000 a 50% share of
an option to acquire the 100% interest in a drilling rig, currently on lease to
Rowan Companies, Inc.
In March 2000, the Partnership formed a joint venture for the purpose of
owning the 50% share of the option to acquire the residual interest in the
drilling rig. The Partnership contributed its investment in the option with a
book value of $12,394,328 to the joint venture ("Rowan Joint Venture").
Simultaneously, the Partnership sold an interest in this joint venture to
ICON Cash Flow Partners L.P. Six ("L.P. Six"), an affiliate of the Partnership,
for $2,250,000. This transaction was recorded at book value, which approximated
fair market value. Therefore, the Partnership recognized no gain or loss on the
sale of this joint venture to L.P. Six.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Consolidated Financial Statements - Continued
As a result, at March 31, 2000, the Partnership and L.P. Six owned interests
aggregating 81.85% and 18.15% in the venture, respectively. Profits, losses and
cash distributions will be allocated based upon the Partnerships' ownership
interests. L.P. Six has the right to put its interest in the joint venture back
to the Partnership at any time on or after September 15, 2000 for 110% of the
purchase price. The Partnership has the right to repurchase the interest in the
joint venture from L.P. Six at any time prior to September 15, 2000 for an
amount equal to 105% of L.P. Six's purchase price.
The four joint ventures described below are less than 50% owned and are
accounted for following the equity
method.
ICON Receivables 1997-A L.L.C.
In March 1997 the Partnership, ICON Cash Flow Partners, L.P., Series D
("Series D"), and 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 leases, managing
existing contributed assets and securitizing its portfolio. 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 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. In September 1997, 1997-A securitized substantially all
of its equipment leases and finance receivables and residuals. 1997-A became the
beneficial owner of a trust. The Partnership's original investment was recorded
at cost and is adjusted by its share of earnings, losses and distributions
thereafter.
Information as to the financial position and results of operations of
1997-A as of and for the three months ended March 31, 2000 is summarized below:
March 31, 2000
Assets $ 15,925,164
===============
Liabilities $ 12,532,729
===============
Equity $ 3,392,435
===============
Partnership's share of equity $ 797,788
===============
Three Months Ended
March 31, 2000
Net income $ 87,204
===============
Partnership's share of net income $ 17,410
===============
Distributions $ 115,000
===============
Partnership's share of distributions $ 22,960
===============
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Financial Statements - Continued
ICON Receivables 1997-B L.L.C.
In August 1997 the Partnership, Series E and L.P. Six formed ICON
Receivables 1997-B L.L.C. ("1997-B"), a special purpose entity formed for the
purpose of originating leases and securitizing its portfolio. The Partnership,
Series E and L.P. Six contributed cash and received a 16.67%, 75.00% and 8.33%
interest, respectively, in 1997-B. In order to fund the acquisition of leases,
1997-B obtained a warehouse borrowing facility from Prudential Securities Credit
Corporation (the "1997-B Warehouse Facility"). In October 1998, 1997-B completed
an equipment securitization. The net proceeds from the securitization of these
assets were used to pay-off the remaining 1997-B Warehouse Facility balance and
any remaining proceeds were distributed to the 1997-B members in accordance with
their membership interests. The Partnership's original investment was recorded
at cost and is adjusted by its share of earnings, losses and distributions
thereafter.
Information as to the financial position and results of operations of
1997-B as of and for the three months ended March 31, 2000 is summarized below:
March 31, 2000
Assets $ 26,921,935
===============
Liabilities $ 24,803,239
===============
Equity $ 2,118,696
===============
Partnership's share of equity $ 367,740
===============
Three Months Ended
March 31, 2000
Net income $ 221,735
===============
Partnership's share of net income $ 36,963
===============
Distributions $ -
===============
Partnership's share of distributions $ -
===============
ICON Boardman Funding L.L.C.
In December 1998 the Partnership and three affiliates, ICON Cash Flow
Partners, L.P., Series C ("Series C"), L.P. Six and ICON Income Fund Eight A
L.P. ("Eight A") formed ICON Boardman Funding L.L.C. ("ICON BF"), for the
purpose of acquiring a lease with Portland General Electric. The purchase price
totaled $27,421,810, and was funded with cash and non-recourse debt assumed in
the purchase price. The Partnership, Series C, L.P. Six, and Eight A received a
.5%, .5%, .5% and 98.5% interest, respectively, in ICON BF. The Partnership's
original investment was recorded at cost
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Financial Statements - Continued
of $56,960 and is adjusted by its share of earnings, losses and distributions,
thereafter. Simultaneously with the acquisition of the Portland General Electric
lease by ICON BF, a portion of the rent receivable in excess of the senior debt
payments was acquired by L.P. Six from ICON BF for $3,801,108.
On March 30, 1999, ICON BF acquired L.P. Six's investment in a portion of
the rent in excess of the senior debt payments for $3,097,637 and financed, with
a third party, all of the rent receivable in excess of the senior debt payments.
There was no gain or loss to L.P. Six on this transaction. ICON BF received
$7,643,867 from the financing. The proceeds from the financing, net of the
purchase of L.P. Six's investment, were distributed to the members of ICON BF in
accordance with their ownership interests.
Information as to the financial position and results of operations of ICON
BF as of March 31, 2000 is summarized below: March 31, 2000
Assets $ 24,817,101
===============
Liabilities $ 15,667,197
===============
Equity $ 9,149,904
===============
Partnership's share of equity $ 45,750
===============
Three Months Ended
March 31, 2000
Net income $ 290,186
===============
Partnership's share of net income $ 1,451
===============
Distributions $ -
===============
Partnership's share of distributions $ -
===============
AIC Trust
The Partnership acquired a portfolio of equipment leases and in 1999
contributed such leases, subject to related debt, with a book value of
$6,854,830 to a wholly owned trust ("AIC Trust"). Subsequently, the Partnership
sold interests in this trust at various dates in 1999 to Eight A, an affiliate
of the Partnership, for $3,000,000 and to L.P. Six, an affiliate of the
Partnership, for $1,750,000. These transactions were at book value, which
approximated fair market value at the dates of sale. Therefore, the Partnership
recognized no gain or loss on the sales of these interests to either Eight A or
to L.P. Six.
<PAGE>
ICON Cash Flow Partners L. P. Seven
(A Delaware Limited Partnership)
Notes to Financial Statements - Continued
As a result of the sales of these interests, at March 31, 2000 and at
December 31, 1999, respectively, L.P. Six and Eight A owned interests
aggregating 25.51% and 43.73% in the trust, respectively, with the Partnership
owning a 30.76% interest. The trust is operated as a joint venture. Profits,
losses, excess cash and disposition proceeds are allocated based upon the
Partnerships' percentage ownership interests in the venture during the
respective periods the Partnerships held such interests. The Partnership
accounts for its investment under the equity method of accounting.
Information as to the financial position and results of operations of AIC
Trust as of and for the three months ended March 31, 2000 is summarized below:
March 31, 2000
Assets $ 18,647,975
===============
Liabilities $ 11,650,322
===============
Equity $ 6,997,653
===============
Partnership's share of equity $ 2,163,224
===============
Three Months Ended
March 31, 2000
Net income $ 160,308
===============
Partnership's share of net income $ 49,327
===============
Distributions $ -
===============
Partnership's share of distributions $ -
===============
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The Partnership's portfolio consisted of a net investment in finance
leases, estimated unguaranteed residual values, leveraged leases, financings and
investments in unconsolidated joint ventures, representing 61%, 21%, 15%, 1% and
2% of total investments at March 31, 2000, respectively, and 77%, 15%, 6%, 1%
and 1% of total investments at March 31, 1999, respectively.
Results of Operations for the Three Months Ended March 31, 2000 and 1999
The Partnership did not enter into any new leases or financing agreements
in the 2000 and 1999 periods.
Revenues for the three months ended March 31, 2000 were $4,760,082
representing an increase of $95,520 from 1999. The increase in revenues resulted
from an increase in income from leveraged leases of $419,991, which was
partially offset by a decrease in gain on sale of equipment of $173,932 and a
decrease in finance income of $138,735. Income from leveraged leases increased
due to an additional leveraged lease investment made in the fourth quarter of
1999. The lower gain on sales of equipment was due to fewer sales of equipment
for which proceeds received were in excess of the remaining carrying value. The
decrease in finance income was a result of a decrease in the average size of the
finance lease portfolio from 1999 to 2000.
Expenses for the three months ended March 31, 2000 were $3,753,554,
representing an increase of $336,608 from 1999. The increase in expenses
resulted from an increase in the management fees of $237,345, an increase in
administrative expense reimbursements of $210,999, an increase in amortization
of initial development costs of $57,435, and an increase in general and
administrative of $40,398, which were partially offset by a decrease in
provision for bad debts of $200,000 and a decrease in interest expense of
$9,634. The increases in management fees, administrative expense reimbursements
and amortization of initial development costs were a result of increased overall
business activity from 1999 to 2000. The increase in general and administrative
expense was primarily due to an increase in tax and other professional fees,
which were partially offset by a decrease in printing costs. Interest expense
decreased due to a decrease in average debt outstanding. As a result of an
analysis of delinquency, assessment of overall risk and a review of historical
loss experience, the Partnership determined that no additional provision for bad
debt was required for the three months ending March 31, 2000.
Net income for the three months ended March 31, 2000 and 1999 was
$1,006,528 and $1,247,616, respectively. The net income per weighted average
limited partnership unit was $1.01 and $1.24, respectively.
Liquidity and Capital Resources
The Partnership's primary sources of funds for the three months ended March
31, 2000 and 1999 were net cash provided by operations of $485,169 and $271,234,
respectively, proceeds from sale of interest in joint venture of $2,250,000 in
2000 and proceeds from sales of equipment of $769,046 in 1999. These funds were
used to make payments on borrowings, fund cash distributions to partners and to
purchase equipment.
<PAGE>
ICON Cash Flow Partners L.P. Seven
(A Delaware Limited Partnership)
Cash distributions to limited partners for the three months ended March 31,
2000 and 1999, which were paid monthly, totaled $2,660,830 and $2,678,115,
respectively, of which $996,463 and $1,235,140 was investment income and
$1,664,367 and $1,442,975 was a return of capital, respectively.
The Partnership entered into a line of credit agreement (the "Facility")
with a lender in December, 1998. The maximum amount available under the Facility
is $5,000,000. The Facility is secured by eligible receivables and residuals and
bears interest at the rate of Prime plus one half percent. At March 31, 2000 the
Partnership had $4,656,623 outstanding under the Facility.
As of March 31, 2000 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 operations, sales of equipment and
borrowings, the Partnership will invest in equipment leases and financings where
it deems it to be prudent while retaining sufficient cash to meet its reserve
requirements and recurring obligations.
<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
March 31, 2000.
<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.
May 12, 2000 /s/ Thomas W. Martin
- ------------ ------------------------------------------------
Date Thomas W. Martin
Executive Vice President
(Principal financial and accounting officer
of the General Partner of the Registrant)
