-----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, DZc0oNpv9F+sg3B0lPMjQ2klJZVt7hTeXqpL3Basn/TKqQxgs0JbtOFGpiMatG9Q QXdYMWCN/Kt1RUeF414WKw== 0000311250-95-000001.txt : 19951201 0000311250-95-000001.hdr.sgml : 19951201 ACCESSION NUMBER: 0000311250-95-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: RMI COVERED HOPPER RAILCAR MANAGEMENT PROGRAM 79-1 CENTRAL INDEX KEY: 0000311250 STANDARD INDUSTRIAL CLASSIFICATION: 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: 95590619 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 September 30, 1995. [ ] 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 nine months ended September 30, ended September 30, -------------------------------------------------------------------------------- 1995 1994 1995 1994 -------------------------------------------------------------------------------- Revenues Collected: Lease revenue received $ 620,590 $ 433,324 $ 1,870,231 $ 1,740,277 Interest and other income 18,343 5,422 61,280 44,304 -------------------------------------------------------------------------------- Total revenues collected 638,933 438,746 1,931,511 1,784,581 Expenses: Repairs and maintenance 97,293 64,439 240,397 241,112 Insurance -- 6,710 (254) 29,593 Property taxes 4,909 12,737 21,362 42,728 Accounting and legal fees 1,824 297 6,334 9,076 Storage, repositioning and other 2,014 1,635 6,049 13,637 -------------------------------------------------------------------------------- Total expenses paid 106,040 85,818 273,888 336,146 -------------------------------------------------------------------------------- Excess of revenues collected over expenses paid 532,893 352,928 1,657,623 1,448,435 -------------------------------------------------------------------------------- Other increases (decreases) in cash: Prepaid mileage, reimbursable repairs and other 48,992 82,037 49,037 88,598 Management fees paid (67,431) (64,149) (195,103) (184,676) Receipt of proceeds from sold or destroyed cars -- -- 22,461 554,134 Receipt of proceeds for transfer of car ownership 75,000 -- 250,000 -- Payments to investors for sold or destroyed cars -- (47,127) (47,968) (589,635) Payments to investors for transfer of car ownership (72,000) -- (240,000) (20,160) Commission paid (2,000) -- (9,000) -- Distributions to investors (444,597) (403,223) (1,286,868) (1,233,875) -------------------------------------------------------------------------------- Net other decreases in cash (462,036) (432,462) (1,457,441) (1,385,614) -------------------------------------------------------------------------------- Net increase (decrease) in cash 70,857 (79,534) 200,182 62,821 Cash at beginning of period 1,506,650 1,315,208 1,377,325 1,172,853 -------------------------------------------------------------------------------- Cash at end of period $ 1,577,507 $ 1,235,674 $ 1,577,507 $ 1,235,674 ================================================================================
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 September 30, 1995 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 September 30, 1995, 494 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 nine months ending September 30,1995, one car was destroyed and ten railcars transferred from several investors to other investors and IMI received a commission fee of $9,000 to handle the 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 September 30, 1995, to be $954,768 ($956,308 at December 31, 1994). 4. Reclassification Certain amounts in the 1994 Statements have been reclassified to conform to 1995 presentation. 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 September 30, 1995 and 1994 Revenues collected: (1) Lease receipts increased to $620,590 in the third quarter of 1995, from $433,324 in the third quarter of 1994. 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 increased to $18,343 in the third quarter of 1995, from $5,422 in the third quarter of 1994, due to higher interest income resulting from higher cash balances and a higher rate of interest paid, offset in part by a lower exchange rate gain. Expenses paid: (1) Repairs and maintenance expense increased to $97,293 in the third quarter of 1995, from $64,439 in the third quarter of 1994. The increase is due to the timing of payments of expenses during comparable periods. (2) Insurance decreased to zero in the third quarter of 1995, from $6,710 in the third quarter of 1994 due to timing of payments of expenses during comparable periods. Insurance policies remain in force for all equipment. (3) Property taxes decreased to $4,909 in the third quarter of 1995, from $12,737 in the third quarter of 1994. The decrease is due to the timing of payments for these expenses during the comparable periods, as the tax rates remained constant. (4) Accounting and legal fees increased to $1,824 in the third quarter of 1995, from $297 in the third quarter of 1994 due to the timing of payments for these expenses during the comparable periods, as the service level remain the same. (5) Storage, repositioning and other expenses increased to $2,014 in the third quarter of 1995, from $1,635 in the third quarter of 1994. 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 $48,992 in the third quarter of 1995, as compared to an increase of $82,037 in the third quarter of 1994. The difference between comparable periods is due primarily to the timing of net receipts and repayments of these funds by the Program. Other changes in cash: (continued) (2) Management fees paid increased to $67,431 in the third quarter 1995, from $64,149 in the third quarter of 1994. The increase is due to $11,115 of incentive fees for net income over $750 per car that was paid in the third quarter of 1995, as compared to $7,605 that was paid in the third quarter of 1994. The Program distributed $444,597 to investors in the third quarter 1995, a 10% increase from the comparable period in 1994. The Program's performance in the second quarter 1995 is not necessarily indicative of future periods. Comparison of the Program's Revenues Collected, Expenses Paid and Other Changes in Cash for the Nine Months Ended September 30, 1995 and 1994 Revenues collected: (1) Lease receipts increased to $1,870,231 for the nine-month period ended September 30, 1995, from $1,740,277 for the comparable period in 1994. The increase is primarily due to timing of rental receipts between the comparable periods and higher average lease rates. In addition, during 1994, 24 railcars were sold or destroyed. (2) Interest and other income increased to $61,280 for the nine-month period ended September 30, 1995, from $44,304 for the comparable period in 1994. The increase is primarily due to an increase in interest income resulting from higher cash balances and a higher rate of interest paid, $21,500 for business interruption insurance claims was received, a similiar claim was not received during 1995. Expenses paid: (1) Repairs and maintenance expense decreased to $240,397 in the nine-month period ended September 30, 1995, from $241,112 for the comparable period in 1994. The decrease is primarily due to the timing of payments of expenses during comparable periods. (2) Insurance decreased to a credit amount of $254 for the nine-month period ended September 30, 1995, from expense of $29,593 for the comparable period in 1994. The decrease is due to an additional 1991 annual premium for business interruption insurance paid in the first quarter of 1994, partially offset by a refund of 1993 annual premium for contingent liability insurance received in the first quarter of 1995. (3) Property taxes decreased to $21,362 for the nine-month ended September 30, 1995, from $42,728 for the comparable period in 1994. The decrease is due to the timing receipt of invoices from various states, and to the timing of payments for these expenses during the comparable periods, as the tax rates remained constant. (4) Accounting and legal fees decreased to $6,334 for the nine-month period ended September 30, 1995, from $9,076 for the comparable period in 1994 as the result of a reduction in the cost for these professional services. (5) Storage, repositioning and other expenses decreased to $6,049 for the nine-month period ended September 30, 1995, from $13,637 for the comparable period in 1994. The decrease is due to timing of payments for these 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 $49,037 during the nine-month period ended September 30, 1995, as compared to an increase of $88,598 for the comparable period in 1994. 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 $195,103 in the nine-month period ended September 30, 1995, from $184,676 for the comparable period in 1994. The increase is due to $25,965 of incentive fees for net income over $750 per car that was paid during 1995, as compared to $11,505 in incentive fees which was paid during 1994. The Program distributed $1,286,868 to investors for the nine-month period ended September 30, 1995, a 4% increase from the comparable period in 1994. 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: November 13, 1995 By: /s/ David J. Davis ----------------------- David J. Davis Vice President and Corporate Controller EX-27 2
5 9-MOS DEC-31-1995 SEP-30-1995 1,577,507 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,931,511 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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