-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KWrqCbCrForBlh6iPNwfsFwd9xf+3dwje48qN39UqR0WJHTW+driy9CCmUmgNyqv uTBZ0oRE+8v18CPT1ed4KA== 0001019542-99-000004.txt : 19990518 0001019542-99-000004.hdr.sgml : 19990518 ACCESSION NUMBER: 0001019542-99-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATEL CAPITAL EQUIPMENT FUND VII LP CENTRAL INDEX KEY: 0001019542 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 943248318 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-24175 FILM NUMBER: 99626342 BUSINESS ADDRESS: STREET 1: 235 PINE STREET 6TH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 4159898800 MAIL ADDRESS: STREET 1: 235 PINE STREET STREET 2: SIXTH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94104 10-Q 1 1999 FIRST QUARTER REPORT 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 March 31, 1999 |_| 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 0-24175 ATEL Capital Equipment Fund VII, L.P. (Exact name of registrant as specified in its charter) California 94-3248318 (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 Part I. FINANCIAL INFORMATION Item 1. Financial Statements. ATEL CAPITAL EQUIPMENT FUND VII, L.P. BALANCE SHEETS MARCH 31, 1999 AND DECEMBER 31, 1998 (Unaudited) ASSETS 1999 1998 ---- ---- Cash and cash equivalents $ 654,938 $ 1,576,029 Accounts receivable 4,847,847 6,380,886 Other assets 160,004 170,003 Investments in leases 201,768,843 204,329,984 ------------------ ----------------- Total assets $207,431,632 $212,456,902 ================== ================= LIABILITIES AND PARTNERS' CAPITAL Lines of credit $14,672,824 $11,781,707 Non-recourse debt 15,678,284 16,599,347 Other long-term debt 55,983,000 61,553,000 Accounts payable: General Partner 240,051 377,955 Other 818,636 684,475 Accrued interest expense 990,528 805,753 Unearned operating lease income 1,559,998 943,419 ------------------ ----------------- Total liabilities 89,943,321 92,745,656 Partners' capital: General Partner (896,450) (717,165) Limited Partners 118,384,761 120,428,411 ------------------ ----------------- Total partners' capital 117,488,311 119,711,246 ------------------ ----------------- Total liabilities and partners' capital $207,431,632 $212,456,902 ================== ================= See accompanying notes. ATEL CAPITAL EQUIPMENT FUND VII, L.P. INCOME STATEMENTS THREE MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 (Unaudited)
1999 1998 ---- ---- Revenues: Leasing activities: Operating leases $ 9,015,109 $ 5,392,236 Direct financing leases 494,423 262,173 Leveraged leases 35,872 32,879 Gain on sales of assets 717,597 878 Interest 12,655 6,567 Other 3,872 723 ------------------ ----------------- 10,279,528 5,695,456 Expenses: Depreciation 5,986,237 2,913,361 Interest expense 1,510,812 846,237 Administrative cost reimbursements to General Partner 78,213 247,691 Equipment and incentive management fees to General Partner 493,154 295,546 Other 356,304 145,296 Provision for losses - 56,954 Professional fees 38,381 8,751 ------------------ ----------------- 8,463,101 4,513,836 ------------------ ----------------- Net income $ 1,816,427 $ 1,181,620 ================== ================= Net income: General Partner $ 136,232 $ 88,622 Limited Partners 1,680,195 1,092,998 ------------------ ----------------- $ 1,816,427 $ 1,181,620 ================== ================= Net income per Limited Partnership Unit $ 0.11 $ 0.15 Weighted average number of Units outstanding 14,996,050 7,500,393
STATEMENT OF CHANGES IN PARTNERS' CAPITAL THREE MONTH PERIOD ENDED MARCH 31, 1999 (Unaudited)
Limited Partners General Units Amount Partner Total Balance December 31, 1998 14,996,050 $120,428,411 $ (717,165) $119,711,246 Distributions to partners (3,723,845) (315,517) (4,039,362) Net income 1,680,195 136,232 1,816,427 ----------------- ----------------- ------------------ ----------------- Balance March 31, 1999 14,996,050 $118,384,761 $ (896,450) $117,488,311 ================= ================= ================== =================
See accompanying notes. ATEL CAPITAL EQUIPMENT FUND VII, L.P. STATEMENT OF CASH FLOWS THREE MONTH PERIODS ENDED MARCH 31, 1999 AND 1998
1999 1998 ---- ---- Operating activities: Net income $ 1,816,427 $ 1,181,620 Adjustments to reconcile net income to cash provided by operating activities: Leveraged lease income (35,872) (32,879) Gain on sales of assets (717,597) (878) Depreciation 5,986,237 2,913,361 Provision for losses - 56,954 Changes in operating assets and liabilities: Accounts receivable 1,533,039 (1,167,512) Other assets 9,999 - Accounts payable, General Partner (137,904) (88,552) Accounts payable, other 134,161 (267,595) Accrued interest expense 184,775 59,026 Unearned lease income 616,579 94,733 ------------------ ----------------- Net cash provided by operations 9,389,844 2,748,278 ------------------ ----------------- Investing activities: Purchases of equipment on operating leases (4,572,733) (11,560,028) Purchases of equipment held for sale or lease - (441,187) Purchases of equipment on direct financing leases (555,188) - Reduction of net investment in direct financing leases 414,151 106,076 Proceeds from sales of assets 2,042,143 10,608 ------------------ ----------------- Net cash used in investing activities (2,671,627) (11,884,531) ------------------ ----------------- Financing activities: Borrowings under line of credit 3,172,824 - Repayments of borrowings under line of credit (281,707) (3,135,499) Repayments of non-recourse debt (921,063) (182,233) Repayments of other long-term debt (5,570,000) - Distributions to limited partners (3,723,845) (1,705,606) Distributions to general partner (315,517) (179,860) Capital contributions received - 16,490,640 Payment of syndication costs to General Partner - (2,162,561) ------------------ ----------------- Net cash (used in) provided by financing activities (7,639,308) 9,124,881 ------------------ ----------------- Net decrease in cash and cash equivalents (921,091) (11,372) Cash and cash equivalents at beginning of period 1,576,029 2,014,706 ------------------ ----------------- Cash and cash equivalents at end of period $ 654,938 $ 2,003,334 ================== ================= Supplemental disclosures of cash flow information: Cash paid during the period for interest $ 1,326,037 $ 787,211 ================== =================
See accompanying notes. ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (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 Capital Equipment Fund VII, L.P. (the Fund), was formed under the laws of the State of California on July 17 , 1996, 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 17, 1996, $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 7, 1997, the Partnership commenced operations. 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. ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (Unaudited) 3. Investment in leases: The Partnership's investment in leases consists of the following:
Depreciation Balance Expense or Reclassi- Balance December 31, Amortization fications or March 31, 1998 Additions of Leases Dispositions 1999 ---- --------- --------- - ------------- ---- Net investment in operating leases $177,401,763 4,572,733 (5,983,509) $ (608,064) $175,382,923 Net investment in direct financing leases 25,063,961 555,188 (414,151) (739,394) 24,465,604 Net investment in leveraged leases 1,580,583 - 35,872 - 1,616,455 Assets held for sale or lease 355,633 - - 22,912 378,545 Reserve for losses (131,232) - - - (131,232) Initial direct costs, net of accumulated amortization 59,276 - (2,728) - 56,548 ------------------ ----------------- ----------------- ------------------ ----------------- $204,329,984 $ 5,127,921 $(6,364,516) $(1,324,546) $201,768,843 ================== ================= ================= ================== =================
Property on operating leases consists of the following:
Balance Reclassi- Balance December 31, fications or March 31, 1998 Additions Dispositions 1999 ---- --------- ------------ ---- Transportation $102,138,178 $ (417,559) $101,720,619 Manufacturing 24,391,341 $ 2,805,839 344,073 27,541,253 Mining 26,099,674 - - 26,099,674 Marine vessels 22,335,250 - - 22,335,250 Office automation 6,307,481 1,326,065 (3,649) 7,629,897 Materials handling 5,574,150 440,829 - 6,014,979 Motor vehicles 5,454,671 - - 5,454,671 Aircraft 4,991,972 - - 4,991,972 Other 4,602,749 - (1,235,019) 3,367,730 Furniture and fixtures 2,461,533 - - 2,461,533 ----------------- ----------------- ------------------ ----------------- 204,356,999 4,572,733 (1,312,154) 207,617,578 Less accumulated depreciation (26,955,236) (5,983,509) 704,090 (32,234,655) ----------------- ----------------- ------------------ ----------------- $177,401,763 $(1,410,776) $ (608,064) $175,382,923 ================= ================= ================== =================
ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (Unaudited) 3. Investment in leases (continued): All of the property on leases was acquired in 1997, 1998 and 1999. At March 31, 1999, the aggregate amounts of future minimum lease payments are as follows: Direct Year ending Operating Financing December 31, Leases Leases Total 1999 $ 24,885,105 $ 3,873,632 $ 28,758,737 2000 33,910,626 4,610,702 38,521,328 2001 26,673,102 4,484,828 31,157,930 2002 18,800,226 3,555,471 22,355,697 2003 10,223,359 2,252,958 12,476,317 Thereafter 12,041,962 5,404,634 17,446,596 ----------------- ----------------- ------------------ $126,534,380 $ 24,182,225 $150,716,605 ================= ================= ================== 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 7.0% to 10.0%. Future minimum payments of non-recourse debt are as follows: Year ending December 31, Principal Interest Total 1999 $ 1,865,893 $ 1,559,817 $ 3,425,710 2000 3,358,169 1,341,263 4,699,432 2001 3,900,748 978,708 4,879,456 2002 4,170,658 561,524 4,732,182 2003 1,744,858 182,192 1,927,050 Thereafter 637,958 78,582 716,540 ----------------- ----------------- ------------------ $ 15,678,284 $ 4,702,086 $ 20,380,370 ================= ================= ================== ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (Unaudited) 5. Other long-term debt: In 1998, the Partnership entered into a $65 million receivables funding program (the Program) with a receivables financing company that issues commercial paper rated A1 by Standard and Poors and P1 by Moody's Investor Services. Under the Program, the receivables financing company receives a general lien against all of the otherwise unencumbered assets of the Partnership. The Program provides for borrowing at a variable interest rate (5.23001% at March 31, 1999). The General Partner anticipates that the Program will allow the Partnership to avail itself to lower cost debt than that available for individual non-recourse debt transactions. It is the intention of the Partnership to use the Program to finance assets leased to those credits which, in the opinion of the General Partner, have a relatively lower potential risk of lease default than those lessees with equipment financed with non-recourse debt. The Partnership will continue to use its traditional sources of non-recourse secured debt financing on a selected transaction basis as a means of mitigating credit risk. The Program requires the General Partner to enter into various interest rate swaps with a financial institution (also rated A1/P1) to manage interest rate exposure associated with variable rate obligations under the Program by effectively converting the variable rate debt to fixed rates. As of March 31, 1999, the Partnership receives or pays interest on a notional principal of $55,983,000, based on the difference between nominal rates ranging from 5.55% to 6.22% and the variable rate under the Program. No actual borrowing or lending is involved. The last of the swaps terminates in 2008. The differential to be paid or received is accrued as interest rates change and is recognized currently as an adjustment to interest expense related to the debt. Borrowings under the Program are as follows: Original Balance Rate on Amount March 31, Interest Swap Date Borrowed Borrowed 1999 Agreement ------------- -------- ---- --------- 4/1/98 $ 21,770,000 $ 16,968,000 6.22% 7/1/98 $ 25,000,000 $ 21,031,000 5.75% 10/1/98 $ 20,000,000 $ 17,984,000 5.55% ----------------- ----------------- $ 66,770,000 $ 55,983,000 ================= ================= The long-term debt borrowings mature from 2004 through 2008. Future minimum principal payments of long-term debt are as follows: Year ending December 31, Principal Interest Total 1999 $ 10,518,000 $ 2,251,344 $ 12,769,344 2000 14,861,000 2,222,543 17,083,543 2001 11,000,000 1,432,767 12,432,767 2002 8,716,000 861,897 9,577,897 2003 4,666,000 485,020 5,151,020 Thereafter 6,222,000 492,118 6,714,118 ----------------- ----------------- ------------------ $ 55,983,000 $ 7,745,689 $ 63,728,689 ================= ================= ================== ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (Unaudited) 6. 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 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. The General Partner and/or Affiliates earned fees, commissions and reimbursements, pursuant to the Limited Partnership Agreement as follows:
1999 1998 ---- ---- 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 3.5% 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). $ 493,154 $ 295,546 Administrative costs reimbursed to General Partner 78,213 247,691 Selling commissions (equal to 9.5% of the selling price of the Limited Partnership units, deducted from Limited Partners' capital) - 1,478,874 Reimbursement of other syndication costs - 802,670 ------------------ ----------------- $ 571,367 $ 2,824,781 ================== =================
ATEL CAPITAL EQUIPMENT FUND VII, L.P. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (Unaudited) 7. Partner's capital: As of March 31, 1998, 8,365,960 Units ($83,659,600) were issued and outstanding. The Fund's registration statement with the Securities and Exchange Commission became effective November 29, 1996. The Fund is authorized to issue up to 15,000,050 Units, including the 50 Units issued to the initial limited partners. Available Cash from Operations, as defined in the Limited Partnership Agreement, shall be distributed as follows: First, Distributions of Cash from Operations shall be 88.5% to the Limited Partners, 7.5% to the General Partner and 4% to the General Partner or its affiliate designated as the recipient of the Incentive Management Fee, 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, as defined in the Limited Partnership Agreement. Second, 85% to the Limited Partners, 7.5% to the General Partner and 7.5% to the General Partner or its affiliate designated as the recipient of the Incentive Management Fee. Available Cash from Sales or Refinancing, as defined in the Limited Partnership Agreement, shall be distributed as follows: First, Distributions of Sales or Refinancings shall be 92.5% to the Limited Partners and 7.5% to the General Partner, 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. Second, 85% to the Limited Partners, 7.5% to the General Partner and 7.5% to the General Partner or its affiliate designated as the recipient of the Incentive Management Fee. 8. Line of credit: The Partnership participates with the General Partner and certain of its Affiliates in a $90,000,000 revolving credit agreement with a group of financial institutions which expires on January 31, 2000. The agreement includes an acquisition facility and a warehouse facility which are used to provide bridge financing for assets on leases. Draws on the acquisition facility by any individual borrower are secured only by that borrower's assets, including equipment and related leases. Borrowings on the warehouse facility are recourse jointly to certain of the Affiliates, the Partnership and the General Partner. At March 31, 1999, the Partnership had $14,672,824 of borrowings under the line of credit. The credit agreement includes certain financial covenants applicable to each borrower. The Partnership was in compliance with its covenants as of March 31, 1999. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Capital Resources and Liquidity During the first quarter of 1999, the Partnership's primary activity was engaging in equipment leasing activities. During the first quarter of 1998, the Partnership's primary activities were raising funds through its offering of Limited Partnership Units (Units) and engaging in equipment leasing activities. In 1999, the Partnership's primary source of liquidity was operating lease rents. 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 $90,000,000 revolving line of credit with a financial institution. The line of credit expires on January 31, 2000. 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. No commitments of capital have been or are expected to be made other than for the acquisition of additional equipment. Such commitments totaled approximately $8,243,000 as of March 31, 1999. 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. Cash Flows During the first quarters of 1998, the Partnership's primary sources of liquidity were the proceeds of its offering of Units. In 1999, the primary source of liquidity was rents from operating leases. Cash from operating activities was almost entirely from operating lease rents in both years. In the first quarter of 1999 and 1998, the only sources of cash from investing activities was proceeds from sales of assets and rents from direct financing leases. In 1999, proceeds from sales of lease assets increased significantly compared to 1998. Proceeds from such sales are not expected to be consistent from one year to another. Neither was significant compared cash in 1998. The primary investing use of cash was the purchase of assets on operating leases. In 1999, the only source of cash from investing activities was borrowings under the line of credit. In 1998, cash from financing sources consisted of cash received for subscriptions for Units. Distributions to Partners has increased as the offering has continued and the number of outstanding Units has increased compared to 1998. Results of operations Operations resulted in a net income of $1,816,427 in 1999 compared to $1,181,620 in the same period in 1998. The Partnership's primary source of revenues is from operating leases. This is expected to remain true in future periods. Depreciation expense is the single largest expense of the Partnership. Depreciation is related to operating lease assets and thus, to operating lease revenues. Operating lease revenues and depreciation expense have increased over the last year as a result of asset acquisitions. Gains recognized on sales of assets have increased by $716,719 compared to 1998. Such gains are not expected to be consistent from one period to another. Equipment management fees are based on the Partnership's rental revenues and have increased in relation to increases in the Partnership's revenues from leases. Incentive management fees are based on the levels of distributions to limited partners. Such distributions have increased as a result of the increase in the number of Units outstanding compared to the prior year. The number of Units outstanding increase as a result of the continuing offering of such Units. The offering ended in November 1998. Interest expense in the first quarter of 1998 relates primarily to the borrowings under the line of credit. Total borrowings have increased from $45,200,102 at March 31, 1998 to $86,334,108 at March 31, 1999. This increase has caused the increase of $664,575 in interest expense compared to 1998. 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. 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, March 31, 1999 and December 31, 1998. Income statements for the three month periods ended March 31, 1999 and 1998. Statement of changes in partners' capital for the three months ended March 31, 1999. Statements of cash flows for the three month periods ended March 31, 1999 and 1998. 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 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: May 14, 1999 ATEL CAPITAL EQUIPMENT FUND VII, 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/ Paritosh K. Choksi ------------------------------------- Paritosh K. Choksi Principal financial officer of registrant By: /s/ Donald E. Carpenter ------------------------------------- Donald E. Carpenter Principal accounting officer of registrant EX-27 2 FDS --
5 3-MOS DEC-31-1999 DEC-31-1999 654938 0 4847847 0 0 0 0 0 207431632 0 0 0 0 0 117488311 207431632 0 10279528 0 0 6952289 0 1510812 1816427 0 1816427 0 0 0 1816427 0 0
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