-----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, GxUf2lS4XwaKGgXIFUZUJPA4CArxs89TiSuEo2MSKr5m/OHN1JB/53Lz3pbx9i+v HfPNx00MEgyUOznsbwg3Ng== 0000311250-97-000002.txt : 19970514 0000311250-97-000002.hdr.sgml : 19970514 ACCESSION NUMBER: 0000311250-97-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970513 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: 97602536 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, 1997. [ ] 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, ------------------------------------- 1997 1996 ------------------------------------ Revenues collected: Lease revenue received $ 691,150 $ 634,046 Interest and other income 16,022 20,197 ------------------------------------ Total revenues collected 707,172 654,243 Expenses paid: Repairs and maintenance 46,221 72,387 Property taxes (3,994 ) 6,092 Accounting and legal fees 6,213 3,323 Storage, repositioning and other 4,580 5,797 ------------------------------------ Total expenses paid 53,020 87,599 ------------------------------------ Excess of revenues collected over expenses paid 654,152 566,644 ------------------------------------ Other increases (decreases) in cash: Prepaid mileage, reimbursable repairs and other expense 9,365 (67,020 ) Management fees paid (67,553 ) (68,004 ) Receipt of proceeds from sold or destroyed cars -- 899,000 Receipt of proceeds for transfer of car ownership -- 25,000 Payments to investors for transfer of car ownership -- (24,000 ) Commission paid for sold or destroyed cars (1,080 ) (35,960 ) Commission paid for transfer of car ownership -- (1,000 ) Distributions to investors (445,597 ) (444,777 ) ------------------------------------ Net other (decreases) increases in cash (504,865 ) 283,239 ------------------------------------ Net increase in cash 149,287 849,883 Cash at beginning of period 1,344,981 1,581,112 ------------------------------------ Cash at end of period $ 1,494,268 $ 2,430,995 ====================================
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, 1997 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 financial position, or results of operations or cash flows in accordance with generally accepted accounting principles. 2. Operations At March 31, 1997, 470 cars, which are owned by the investors, were being managed by IMI under the Program. With the exception of four cars, all of the cars were covered by lease agreements. During the three months ending March 31, 1997, one car was added to the Program. 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, 1997, to be $1,002,572 ($910,989 at December 31, 1996). 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 March 31, 1997 and 1996 Revenues collected: (1) Lease receipts increased to $691,150 in the first quarter of 1997 from $634,046 in the first quarter of 1996. The increase is primarily due to the timing of receipt of revenues and the higher average lease rates for certain lessees during the comparable periods. (2) Interest and other income decreased to $16,022 in the first quarter of 1997, from $20,197 in the first quarter of 1996, due to lower interest income resulting from lower rate of interest paid and lower average cash balances. Expenses paid: (1) Repairs and maintenance expense decreased to $46,221 in the first quarter of 1997, from $72,387 in the first quarter of 1996. The decrease is due to the timing of payments of expenses during comparable periods. (2) Property taxes decreased to a credit of $3,994 in the first quarter of 1997, from $6,092 in the first quarter of 1996. The decrease is due to a $4,000 credit for overpaid taxes from prior years, and the timing of payments for these taxes during the comparable periods, as the tax rates remained constant. (3) Accounting and legal fees increased to $6,213 in the first quarter of 1997, from $3,323 in the first quarter of 1996 due to the increase in cost of these professional services and the timing of payments for these expenses during the comparable periods. (4) Storage, repositioning and other expenses decreased to $4,580 in the first quarter of 1997, from $5,797 in the first quarter of 1996. The decrease 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 $9,365 in the first quarter of 1997, as compared to a decrease by $67,020 in the first quarter of 1996. 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 decreased slightly to $67,553 in the first quarter 1997, from $68,004 in the first quarter of 1996. The decrease is due to 29 cars that were sold during March of 1996, offset by the higher incentive fee of $14,070 in the first quarter of 1997 compared to $11,270 paid in the same period of 1996. The Program distributed $445,597 to investors in the first quarter 1997, and $444,777 in the first quarter of 1996. The Program's performance in the first quarter 1997 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: May 12, 1997 By:/s/ David J. Davis ----------------------------- David J. Davis Vice President and Corporate Controller EX-27 2
5 3-MOS DEC-31-1997 MAR-31-1997 1,494,268 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 707,172 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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