-----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, CtcLuenFJjzudukkPZKVcxHSXoB3ILIYpAE7ZR6irD2CuClZd66Yc6MZWHq/AiWF 0PnBB5INePx5/6RSJePEXw== 0000311250-97-000003.txt : 19970808 0000311250-97-000003.hdr.sgml : 19970808 ACCESSION NUMBER: 0000311250-97-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970807 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: 97653209 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, 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 For the six months ended June 30, ended June 30, 1997 1996 1997 1996 --------------------------------------------------------------- Revenues collected: Lease revenue received $ 519,290 $ 623,070 $ 1,210,440 $ 1,257,117 Interest income 16,292 17,891 32,314 38,088 --------------------------------------------------------------- Total revenues collected 535,582 640,961 1,242,754 1,295,205 --------------------------------------------------------------- Expenses paid: Repairs and maintenance 62,476 65,952 108,697 138,340 Insurance (11,077 ) -- (10,181 ) -- Property taxes 826 6,648 (3,168 ) 12,740 Accounting and legal fees 1,223 3,988 7,436 7,311 Storage, repositioning and other 1,867 2,079 5,550 7,875 --------------------------------------------------------------- Total expenses paid 55,315 78,667 108,334 166,266 ---------------------------------------------------------------- Excess of revenues collected over expenses paid 480,267 562,294 1,134,420 1,128,939 ---------------------------------------------------------------- Other increases (decreases) in cash: Prepaid mileage, reimbursable repairs and other expense (4,089 ) 23,508 5,276 (43,513) Management fees paid (71,276 ) (68,512 ) (138,829 ) (136,515) Receipt of proceeds from sold or destroyed cars 31,713 61,000 31,713 960,000 Receipt of proceeds for transfer of car ownership 27,500 54,000 27,500 79,000 Payments to investors for sold or destroyed cars (31,713 ) (921,600 ) (31,713 ) (921,600) Payments to investors for transfer of car ownership (26,400 ) (24,960 ) (26,400 ) (48,960) Commission paid (1,100 ) (5,720 ) (2,180 ) (42,680) Distributions to investors (469,216 ) (512,324 ) (914,813 ) (957,101) --------------------------------------------------------------- Net other decreases in cash (544,581 ) (1,394,608 ) (1,049,446 ) (1,111,369) ---------------------------------------------------------------- Net (decrease) increase in cash (64,314 ) (832,314 ) 84,974 17,570 Cash at beginning of period 1,494,268 2,430,996 1,344,980 1,581,112 ---------------------------------------------------------------- Cash at end of period $ 1,429,954 $ 1,598,682 $ 1,429,954 $ 1,598,682 ================================================================
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, 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 June 30, 1997, 474 cars, which are owned by the investors, were being managed by IMI under the Program. At June 30, 1997, all but fourteen of the cars were covered by lease agreements. During the six months ending June 30, 1997, six cars were added to the Program, one car was destroyed, and one car was transferred from one investor to another investor. 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, 1997, to be $940,501 ($910,989 at December 31, 1996). Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 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, 1997 and 1996 Revenues collected: (1) Lease receipts decreased to $519,290 in the second quarter of 1997, from $623,070 in the second quarter of 1996. The decrease is primarily due to the timing of receipt of revenues during the comparable periods. (2) Interest income decreased to $16,292 in the second quarter of 1997, from $17,891 in the second quarter of 1996, due to lower interest income resulting from lower interest income due to lower average cash balances maintained by the Program. Expenses paid: (1) Repairs and maintenance expense decreased to $62,476 in the second quarter of 1997, from $65,952 in the second quarter of 1996. The decrease is due to the timing of payments of expenses during comparable periods. (2) Insurance decreased to a credit of $11,077 in the second quarter of 1997, from zero in the second quarter of 1996. The decrease is due to a refund of 1994 annual premium for business interruption insurance received in the second quarter of 1997. (3) Property taxes decreased to $826 in the second quarter of 1997, from $6,648 in the second quarter of 1996. The decrease is due to a $4,200 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. (4) Accounting and legal fees decreased to $1,223 in the second quarter of 1997, from $3,988 in the second quarter of 1996 due to the timing of payments for these expenses during the comparable periods. (5) Storage, repositioning and other expenses decreased to $1,867 in the second quarter of 1997, from $2,079 in the second 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 decreased by $4,089 in the second quarter of 1997, as compared to an increase by $23,508 in the second 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 increased to $71,276 in the second quarter of 1997, from $68,512 in the second quarter of 1996. The increase is due to five cars which were added during the second quarter of 1997, partially offset by lower incentive fee in the second quarter of 1997 compared to same period of 1996. In the second quarter of 1997, $17,588 in incentive fees were paid to IMI, compared to $26,240 in the second quarter of 1996. (3) During the second quarter of 1997, one car was destroyed for which the Program received proceeds of $31,713. During the second quarter of 1996, two cars were sold for $61,000. The net proceeds of $921,600 that was paid to the investors in the second quarter of 1996 included the net proceeds of $863,040 for 29 cars sold in the first quarter of 1996. (4) Comission paid decreased to $1,100 in the second quarter of 1997, from $5,720 in the second quarter of 1996. The decrease was due to fewer cars being destroyed or transferred in the second quarter of 1997 as compared to the second quarter of 1996. Comparison of the Program's Revenues Collected, Expenses Paid and Other Changes in Cash for the Six Months Ended June 30, 1997 and 1996 Revenues collected: (1) Lease receipts decreased to $1,210,440 for the six months ended June 30, 1997, from $1,257,117 for the comparable period in 1996. The decrease is primarily due to the timing of receipt of revenues during the comparable periods. (2) Interest income decreased to $32,314 for the six months ended June 30, 1997, from $38,088 for the comparable period in 1996, due to lower interest income resulting from a lower interest income due to lower cash balances maintained by the Program. Expenses paid: (1) Repairs and maintenance expense decreased to $108,697 for the six months ended June 30, 1997, from $138,340 for the comparable period in 1996. The decrease is due to the timing of payments of expenses during comparable periods. (2) Insurance decreased to a credit of $10,181 for the six months ended June 30, 1997, from zero for the comparable period of 1996. The decrease is due to a refund of 1994 annual premium for business interruption insurance received in the second quarter of 1997. (3) Property taxes decreased to a credit of $3,168 for the six months ended June 30, 1997, from $12,740 for the comparable period in 1996. The decrease is due to a $8,400 credit for overpaid taxes from prior years, and the timing of payments for these expenses during the comparable periods, as the tax rates remained constant. (4) Accounting and legal fees increased to $7,436 for the six months ended June 30, 1997, from $7,311 for the comparable period in 1996 due to the timing of payments for these expenses during the comparable periods. (5) Storage, repositioning and other expenses decreased to $5,550 for the six months ended June 30, 1997, from $7,875 for the comparable period in 1996. The decrease is primarily due to the timing of payments of expenses during comparable periods and decrease in postage and filing fee. 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 $5,276 for the six months ended June 30, 1997, as compared to a decrease of $43,513 for the comparable period in 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 increased to $138,829 for the six months period ended June 30, 1997, from $136,515 for the comparable period in 1996. The increase is due to $31,658 of incentive fees that was paid for the comparable period in 1997, as compared to comparable incentive fees of $26,240 that was paid for the six months ended June 30, 1996. The increase is also due to six cars being added during 1997 to the Program. (3) During the six months ended June 30, 1997, one car was destroyed for which the Program received proceeds of $31,713. During the six months ended June 30, 1996, 31 cars were sold for $960,000. The net proceeds of $921,600 was paid to the investors for the six months ended June 30, 1996. (4) Comission paid decreased to $2,180 for the six months ended June 30, 1997, from $42,680 in the second quarter of 1996. The decrease was due to fewer cars being destroyed or sold, or transferred for the six months ended June 30, 1997, as compared to same period of 1996. The Program distributed $914,813 to investors in the six months ended June 30, 1997, and $957,101 in the six months ended June 30, 1996. The Program's performance in the six months ended June 30, 1997 is not necessarily indicative of future 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 7, 1997 By: /s/ Richard Brock -------------------- Richard Brock Vice President and Corporate Controller EX-27 2
5 6-MOS DEC-31-1997 JUN-30-1997 1,429,954 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,242,754 0 0 0 0 0 0 0 0 0 0 0 0 0 0
-----END PRIVACY-ENHANCED MESSAGE-----