-----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, Pw2CeAsRzpXp1ICSpG3oIUVPQJVsab+n7eZCaKp1bqdwdyg6OgydgBBtTG31t0+p B7g6BrxNg79oAI2NXb/6Vw== 0000311250-00-000004.txt : 20000509 0000311250-00-000004.hdr.sgml : 20000509 ACCESSION NUMBER: 0000311250-00-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000508 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: SEC FILE NUMBER: 002-64413 FILM NUMBER: 621982 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 MARCH 31, 2000. [ ] 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 800, 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 Ended March 31, 2000 1999 --------------------------------- Revenues collected: Lease receipts $ 421,343 $ 537,324 Interest and other income 11,738 22,730 --------------------------------- Total revenues collected 433,081 560,054 Expenses paid: Management fees 59,295 74,078 Repairs and maintenance 159,743 73,835 Property taxes 1,364 1,364 Accounting and legal fees 6,171 1,988 Storage, repositioning and other 6,818 2,157 ------------------------------- Total expenses paid 233,391 153,422 --------------------------------- Excess of revenues collected over expenses paid 199,690 406,632 --------------------------------- Other increases (decreases) in cash: Prepaid mileage, reimbursable repairs and other expenses 30,814 32,089 Receipt of proceeds from sold or destroyed cars -- 29,763 Receipt of proceeds for transfer of car ownership -- 26,000 Payments to investors for transfer of car ownership -- (24,960) Distributions to investors (388,911) (485,325) --------------------------------- Net other decreases in cash (358,097) (422,433) --------------------------------- Net decrease in cash (158,407) (15,801) Cash at beginning of period 956,616 1,318,995 --------------------------------- Cash at end of period $ 798,209 $ 1,303,194 =================================
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 MARCH 31, 2000 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 of accounting, 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 the financial position or results of operations or cash flows of the Program in accordance with generally accepted accounting principles. 2. OPERATIONS As of March 31, 2000, 490 cars, which are owned by the investors, were being managed by IMI under the Program. All of the cars except six cars were covered by lease agreements as of March 31, 2000. As of March 31, 1999, 485 cars, which are owned by the investors, were being managed by IMI under the Program. All of the cars were covered by lease agreements as of March 31, 1999. During the three months ending March 31, 2000, no cars were added to the Program and no cars were sold or destroyed. During the three months ending March 31, 1999, one car was added to the Program and one car was destroyed. 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 March 31, 2000, to be $403,490 ($603,179 at December 31, 1999). (this space intentionally left blank) Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (I) RESULTS OF OPERATIONS Comparison of RMI Covered Hopper Railcar Management Program 79-1 (the Program) Revenues Collected, Expenses Paid and Other Changes in Cash for the Three Months Ended March 31, 2000 and 1999 REVENUES COLLECTED: (1) Lease receipts decreased to $421,343 in the first quarter of 2000, from $537,324 in the first quarter of 1999. A decrease in lease receipts of $161,024 was due to lower average lease rates for majority of railcars during the comparable periods. These decrease in lease receipts were partially offset by an increase in lease receipts of $41,473 due to the timing of receipt of revenue, and a $3,570 increase in lease receipts due to seven cars added in the Program during the last three quarters of 1999. (2) Interest and other income decreased to $11,738 in the first quarter of 2000, from $22,730 in the first quarter of 1999. The decrease in interest and other income was due to the exchange rate fluctuation, $122 exchange rate loss in the first quarter of 2000 as compared to $5,848 exchange rate gain in the first quarter of 1999, a net decrease of $5,970. The decrease in interest and other income was also due to decrease in interest income of $5,022 during the first quarter of 2000 when compared to the same period of 1999 resulting from lower interest income earned on lower average cash balances. EXPENSES PAID: (1) Management fees decreased to $59,295 in the first quarter of 2000, from $74,078 in the first quarter of 1999. The decrease was primarily due to lower incentive fees paid to PLM Investment Management, Inc. (IMI) in the first quarter of 2000 compared to same quarter of 1999. In the first quarter of 2000, $3,435 in incentive fees were paid to IMI, compared to $18,788 in the first quarter of 1999. (2) Repairs and maintenance expense increased to $159,743 in the first quarter of 2000, from $73,835 in the first quarter of 1999. An increase in repairs and maintenance expense of $43,363 was due to the timing of payments of expenses during comparable period. An increase of $42,545 in repairs and maintenance resulted from major repairs required on certain railcars in the fleet during the first quarter of 2000, which were not needed during the same period of 1999. (3) Accounting and legal fees increased to $6,171 in the first quarter of 2000, from $1,988 in the first quarter of 1999. An increase in accounting and legal fees of $2,379 was due to the timing of payments for these expenses during the comparable periods. An increase in accounting and legal fees of $1,804 was due to the increase in cost of these professional services. (4) Storage, repositioning and other expenses increased to $6,818 in the first quarter of 2000, from $2,157 for the comparable period in 1999. The increase was primarily due to higher repositioning expenses during 2000 when compared to 1999. OTHER CHANGES IN CASH: (1) Reimbursable prepaid mileage, repairs and other expenses are composed primarily of receipts of mileage credits from railroads which are due to lessees, net of reimbursable repairs due from lessees. Net receipts were $30,814 in the first quarter of 2000, as compared to net receipts of $32,089 in the first quarter of 1999. The difference between comparable periods was due primarily to the timing of receipts and repayments of these funds by the Program. (2) During the first quarter of 2000, no cars were destroyed or sold. During the first quarter of 1999, one car was destroyed for which the Program received insurance proceeds of $29,763. These insurance proceeds were paid to the investor of the destroyed car in April of 1999. (3) During the first quarter of 2000, no railcars were transferred between investors in the Program. During the first quarter of 1999, the Program received proceeds of $26,000 for a railcar that was transferred from one investor to another investor in the Program. The Program paid $24,960 net of commission of $1,040 to the investor that sold the car. (4) No commission was paid for the three months ended March 31, 2000 or 1999. Commission of $1,040 was paid to the Manager during the second quarter of 1999 for the one car that was transferred between investors during the first quarter of 1999. The Program distributed $388,911 to investors in the three months ended March 31, 2000 compared to $485,325 in the three months ended March 31, 1999. The Program's performance in the three months ended March 31, 2000 is not necessarily indicative of future periods. (II) EFFECTS OF YEAR 2000 To date, the Program has not experienced any material Year 2000 (Y2K) issues with either its internally developed software or purchased software. In addition, to date the Program has not been impacted by any Y2K problems that may have impacted our customers and suppliers. The amount allocated to the Program by PLM Investment Management, Inc. (the Manager) related to Y2K issues has not been material. The Manager continues to monitor its systems for any potential Y2K issues. (III) FORWARD-LOOKING INFORMATION Except for the historical information contained herein, the discussion in this Form 10-Q contains forward-looking statements that involve risks and uncertainties, such as statements of the Program's plans, objectives, expectations, and intentions. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. The Program's actual results could differ materially from those discussed here. 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: May 5, 2000 By: /s/ Richard K Brock Richard K Brock Vice President and Chief Financial Officer EX-27 2
5 1 3-MOS DEC-31-2000 MAR-31-2000 798,209 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 433,081 0 0 233,391 0 0 0 0 0 0 0 0 0 0 0
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