-----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, IjCDIhY/xMhlnk9WB3Oq+YMKZkwCuH6KX//BZ6AmJoQJCfxWyr8PRFCgjUAAtYXy ydDLxcAgLEBVoHa1/Zl9ow== 0000311250-96-000003.txt : 19960807 0000311250-96-000003.hdr.sgml : 19960807 ACCESSION NUMBER: 0000311250-96-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960806 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1 CENTRAL INDEX KEY: 0000311250 STANDARD INDUSTRIAL CLASSIFICATION: ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO [4731] IRS NUMBER: 942645847 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 002-64413 FILM NUMBER: 96604461 BUSINESS ADDRESS: STREET 1: ONE MARKET PLZ STREET 2: STEUART STREET TOWER STE 900 CITY: SAN FRANCISCO STATE: CA ZIP: 94105-1301 BUSINESS PHONE: 4159741399 10-Q 1 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 June 30, 1996. [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 2-64413 ----------------------- RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1 (Exact name of registrant as specified in its charter) California 94-2645847 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Market, Steuart Street Tower Suite 900, San Francisco, CA 94105-1301 (Address of principal (Zip code) executive offices) 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 ______ RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1 STATEMENTS OF REVENUES COLLECTED AND EXPENSES PAID AND OTHER CHANGES IN CASH
For the three months For the six months ended June 30, ended June 30, ------------------------------ --------------------------------- 1996 1995 1996 1995 ------------------------------ --------------------------------- Revenues Collected: Lease revenue received $ 623,070 $ 574,208 $ 1,257,117 $ 1,249,641 Interest and other income 17,891 18,291 38,088 42,937 ----------- Total revenues collected 640,961 592,499 1,295,205 1,292,578 Expenses: Repairs and maintenance 65,952 68,662 138,340 143,103 Property taxes 6,648 11,829 12,740 16,452 Accounting and legal fees 3,988 2,319 7,311 4,442 Storage, repositioning and other 2,079 1,769 7,875 4,402 ----- ----- ----- ----- Total expenses paid 78,667 84,579 166,266 168,399 ------ ------ ------- ------- Excess of revenues collected over expenses paid 562,294 507,920 1,128,939 1,124,179 ------- ------- --------- --------- Other increases (decreases) in cash: Prepaid mileage, reimbursable repairs and other 23,508 (30,798) (43,513) 596 Management fees paid (68,512) (63,726) (136,515) (127,672) Receipt of proceeds from sold or destroyed cars 61,000 -- 960,000 22,461 Receipt of proceeds for transfer of car ownership 54,000 175,000 79,000 175,000 Payments to investors for sold or destroyed cars (921,600) (24,928) (921,600) (47,968) Payments to investors for transfer of car ownership (24,960) (168,000) (48,960) (168,000) Commission paid (5,720) (7,000) (42,680) (7,000) Distributions to investors (512,324) (420,687) (957,101) (842,271) -------- -------- -------- -------- Net other increases (decreases) in cash (1,394,608) (540,139) (1,111,369) (994,854) ---------- -------- ---------- -------- Net (decrease)increase in cash (832,314) (32,219) 17,570 129,325 Cash at beginning of period 2,430,996 1,538,869 1,581,112 1,377,325 --------- --------- --------- --------- Cash at end of period $ 1,598,682 $ 1,506,650 $ 1,598,682 $ 1,506,650 =========== =========== =========== ===========
See accompanying notes to financial statements. RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1 NOTES TO THE STATEMENTS OF REVENUES COLLECTED AND EXPENSES PAID AND OTHER CHANGES IN CASH June 30, 1996 1. Basis of Presentation RMI Covered Hopper Railcar Management Program 79-1 (the Program) is not a legal entity. The statements of revenues collected and expenses paid and other changes in cash (the Statements) of the Program are presented on the cash basis of accounting, used for reporting to investors in the Program in accordance with the Management Agreement with PLM Investment Management, Inc. (IMI). Under the cash basis, revenues are recognized when received, rather than when earned, and expenses are recognized when paid, rather than when the obligation is incurred. Accordingly, the Statements are not intended to present financial position, or results of operations or cash flows in accordance with generally accepted accounting principles. 2. Operations At June 30, 1996, 469 cars, which are owned by the investors, were being managed by IMI under the Program, all of which were covered by lease agreements. During the six months ending June 30, 1996, five cars were added, 31 cars were sold and three railcars were transferred from investors to other investors and IMI received a commission fee of $42,680 to handle the sale and transfer. 3. Equalization reserve Under the terms of the management agreement, IMI may, at its discretion, cause the Program to retain a certain amount of cash (the working capital reserve) to cover future disbursements and provide for a balanced distribution of funds to the investors each quarter. IMI has determined the working capital reserve at June 30, 1996, to be $971,273 ($873,359 at December 31, 1995). Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CASH BALANCES AND RESULTS OF OPERATIONS Liquidity and Capital Resources The Program's capital commitments consist of paying operating expenses, and to the extent funds are available, making cash distributions to the investors. Cash reserves are considered sufficient to cover all known liabilities of the equipment pool. Comparison of the Program's Revenues Collected, Expenses Paid and Other Changes in Cash for the Three Months Ended June 30, 1996 and 1995 Revenues collected: (1) Lease receipts increased to $623,070 in the second quarter of 1996 from $574,208 in the second quarter of 1995. The increase is primarily due to the timing of receipt of revenues during the comparable periods and higher average lease rates. (2) Interest and other income decreased to $17,891 in the second quarter of 1996, from $18,291 in the second quarter of 1995, due to lower interest income resulting from a lower interest rate on the cash balances maintained by the Program. Expenses paid: (1) Repairs and maintenance expense decreased to $65,952 in the second quarter of 1996, from $68,662 in the second quarter of 1995. The decrease is due to the timing of payments of expenses during comparable periods. (2) Property taxes decreased to $6,648 in the second quarter of 1996, from $11,829 in the second quarter of 1995. The decrease is due to the timing of payments for these expenses during the comparable periods, as the tax rates remained constant. (3) Accounting and legal fees increased to $3,988 in the second quarter of 1996, from $2,319 in the second quarter of 1995 due to the timing of payments for these expenses during the comparable periods, as the service level remain the same. (4) Storage, repositioning and other expenses increased to $2,079 in the second quarter of 1996, from $1,769 in the second quarter of 1995. The increase is primarily due to the timing of payments of expenses during comparable periods. Other changes in cash: (1) Prepaid mileage, reimbursable repairs and other are composed primarily of receipts of mileage credits from railroads which are due to lessees, net of reimbursable repairs due from lessees. The funds increased by $23,508 in the second quarter of 1996, as compared to a decrease of $30,798 in the second quarter of 1995. The difference between comparable periods is due primarily to the timing of net receipts and repayments of these funds by the Program. (2) Management fees paid increased to $68,512 in the second quarter 1996, from $63,726 in the second quarter of 1995. The increase is due to $14,970 of incentive fees for net income over $750 per car that was paid in the second quarter of 1996, as compared to comparable incentive fees of $7,410 that was paid in the second quarter of 1995. (3) During the second quarter of 1996, two cars were sold for $61,000 for which IMI received a commission of $2,440. The net proceeds of $921,600 that was paid to the investors in the second quarter of 1996 includes the net proceeds of $863,040 for 29 cars sold in the first quarter of 1996. Comparison of the Program's Revenues Collected, Expenses Paid and Other Changes in Cash for the Six Months Ended June 30, 1996 and 1995 Revenues collected: (1) Lease receipts increased to $1,257,117 for the six months ended June 30, 1996 from $1,249,641 for the comparable period in 1995. The increase is primarily due to the timing of receipt of revenues during the comparable periods and higher average lease rates. (2) Interest and other income decreased to $38,088 for the six months ended June 30, 1996, from $42,937 for the comparable period in 1995, due to lower interest income resulting from a lower interest rate on the cash balances maintained by the Program. Expenses paid: (1) Repairs and maintenance expense decreased to $138,340 for the six months ended June 30, 1996, from $143,103 for the comparable period in 1995. The decrease is due to the timing of payments of expenses during comparable periods. (2) Property taxes decreased to $12,740 for the six months ended June 30, 1996, from $16,452 for the comparable period in 1995. The decrease is due to the timing of payments for these expenses during the comparable periods, as the tax rates remained constant. (3) Accounting and legal fees increased to $7,311 for the six months ended June 30, 1996, from $4,442 for the comparable period in 1995 due to the timing of payments for these expenses during the comparable periods, as the service level remain the same. (4) Storage, repositioning and other expenses increased to $7,875 for the six months ended June 30, 1996, from $4,402 for the comparable period in 1995. The increase is primarily due to the timing of payments of expenses during comparable periods. Other changes in cash: (1) Prepaid mileage, reimbursable repairs and other are composed primarily of receipts of mileage credits from railroads which are due to lessees, net of reimbursable repairs due from lessees. The funds decreased by $43,513 for the six months ended June 30, 1996, as compared to an increase of $596 for the comparable period in 1995. The difference between comparable periods is due primarily to the timing of net receipts and repayments of these funds by the Program. (2) Management fees paid increased to $136,515 for the six months period ended June 30, 1996, from $127,672 for the comparable period in 1995. The increase is due to $26,240 of incentive fees for net income over $750 per car that was paid for the comparable period in 1996, as compared to comparable incentive fees of $14,850 that was paid for the six months ended June 30, 1995. (3) During the six months ended June 30, 1996, 31 cars were sold for $960,000 for which IMI received a commission of $38,400. The net proceeds of $921,600 was paid to the investors for the six months ended June 30, 1996. The Program distributed $957,101 to investors for the six months ended June 30, 1996, a 14% increase from the comparable period in 1995. The Program's performance for the six months ended June 30, 1996 is not necessarily indicative of future periods. Inflation and changing prices did not materially impact the Program's revenues collected, expenses, and other changes in cash during the reported periods. 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. RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1 By: PLM Investment Management, Inc. Manager By: /s/ Stephen M. Bess ----------------------------- Stephen M. Bess President Date: August 5, 1996 By: /s/ David J. Davis ------------------ David J. Davis Vice President and Corporate Controller EX-27 2
5 6-MOS DEC-31-1996 JUN-30-1996 1,598,682 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 623,070 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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