-----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, N16vxt5e6saeQ7eLJrevaaFQXSNwDy18YEaTDW0ErnwTt7MxDWUTZjPQktpVadNh +UEsy41KuKlcdycpw1kZpA== 0000311250-98-000003.txt : 19980515 0000311250-98-000003.hdr.sgml : 19980515 ACCESSION NUMBER: 0000311250-98-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 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: SEC FILE NUMBER: 002-64413 FILM NUMBER: 98620616 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, 1998. [ ] 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, 1998 1997 ---------------------------------------- Revenues collected: Lease revenue received $ 612,392 $ 691,150 Interest and other income 19,690 16,022 ---------------------------------------- Total revenues collected 632,082 707,172 Expenses paid (reimbursed): Repairs and maintenance 67,270 46,221 Property taxes 1,654 (3,994 ) Accounting and legal fees 3,791 6,213 Storage, repositioning, and other 2,671 4,580 ---------------------------------------- Total expenses paid 75,386 53,020 ---------------------------------------- Excess of revenues collected over expenses paid 556,696 654,152 ---------------------------------------- Other increases (decreases) in cash: Prepaid mileage, reimbursable repairs, and other expenses 40,953 9,365 Management fees paid (71,494 ) (67,553 ) Receipt of proceeds from sold or destroyed cars 62,820 -- Receipt of proceeds for transfer of car ownership 79,000 -- Payments to investors for sold or destroyed cars (32,772 ) -- Payments to investors for transfer of car ownership (75,840 ) -- Commission paid for sale or transfer of car ownership (3,160 ) (1,080 ) Distributions to investors (476,086 ) (445,597 ) ---------------------------------------- Net other decreases in cash (476,579 ) (504,865 ) ---------------------------------------- Net increase in cash 80,117 149,287 Cash at beginning of period 1,314,628 1,344,981 ---------------------------------------- Cash at end of period $ 1,394,745 $ 1,494,268 ========================================
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, 1998 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, 1998, 478 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, 1998, two cars were 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, 1998, to be $789,502 ($781,906 at December 31, 1997). Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CASH BALANCES AND RESULTS OF OPERATIONS Comparison of the Program's Revenues Collected, Expenses Paid, and Other Changes in Cash for the Three Months Ended March 31, 1998 and 1997 Revenues collected: (1) Lease receipts decreased to $612,392 in the first quarter of 1998 from $691,150 in the first quarter of 1997. The decrease is primarily due to the timing of receipt of revenues and to lower average lease rates for certain lessees during the comparable periods. (2) Interest and other income increased to $19,690 in the first quarter of 1998, from $16,022 in the first quarter of 1997, due to higher interest income resulting from higher interest rates earned on cash investments during the first quarter of 1998 when compared to the same period of 1997. Expenses paid: (1) Repairs and maintenance expense increased to $67,270 in the first quarter of 1998, from $46,221 in the first quarter of 1997. The increase is due to the timing of payments of expenses during comparable periods. (2) Property taxes increased to $1,654 in the first quarter of 1998, from a credit balance of $(3,994) in the first quarter of 1997. The increase is due to a $4,000 credit for the overpayment of taxes from prior years received during the first quarter of 1997. A similar credit was not received during the first quarter of 1998. (3) Accounting and legal fees decreased to $3,791 in the first quarter of 1998, from $6,213 in the first quarter of 1997 due to the decrease 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 $2,671 in the first quarter of 1998, from $4,580 in the first quarter of 1997. 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 expenses are composed primarily of receipts of mileage credits from railroads which are due to lessees, net of reimbursable repairs due from lessees. Cash increased by $40,953 in the first quarter of 1998, as compared to an increase of $9,365 in the first quarter of 1997 as a result of these items. 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 $71,494 in the first quarter 1998, from $67,553 in the first quarter of 1997. The increase is due primarily to higher incentive fees of $17,850 in the first quarter of 1998 compared to $14,070 paid in the same period of 1997. (3) During the three months ended March 31, 1998, the Program received settlement proceeds of $62,820 from two cars that were destroyed. The Program paid one investor $32,772 for one of the destroyed cars and expects to pay the remaining $30,048 to the other investor of the destroyed car during the second quarter of 1998. (4) During the three months ended March 31, 1998, the Program received proceeds of $79,000 from an investor in the Program that purchased three railcars from another investor in the Program. The Program paid PLM Investment Management, Inc. (IMI) a commission of $3,160 from this sale and paid the remaining $75,840 to the investor that sold the railcars. (5) The Program distributed $476,086 to investors in the first quarter 1998 compared to $445,597 in the first quarter of 1997. The Program's performance in the first quarter 1998 is not necessarily indicative of future periods. Liquidity and Capital Resources The Program's operating funds are committed to payment of operating expenses, management fees, and making cash distributions to the investors when available. The Program intends to finance these activities with funds generated from operations. The Program has experienced no known demands or commitments that might adversely affect the liquidity of the Program. Year 2000 Compliance IMI is currently addressing the year 2000 computer software issue and is creating a timetable for carrying out any program modifications that may be required. IMI does not anticipate that the cost of these modifications allocable to the Program will be material. Accounting Pronouncements In June 1997, the Financial Accounting Standards Board issued two new statements: SFAS No. 130, "Reporting Comprehensive Income," which requires enterprises to report, by major component and in total, all changes in equity from nonowner sources; and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information," which establishes annual and interim reporting standards for a public Program's operating segments and related disclosures about its products, services, geographic areas, and major customers. Both statements are effective for the Program's fiscal year ended December 31, 1998. The effect of adoption of these statements will be limited to the form and content of the Program's disclosures and will not impact the Program's results of operations, cash flow, or financial position. Forward-Looking Information Except for 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. (this space intentionally left blank) 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 14, 1998 By: /s/ Richard K Brock ------------------- Richard K Brock Vice President and Corporate Controller -5- EX-27 2
5 1,000 3-MOS DEC-31-1998 MAR-31-1998 1,395 0 0 0 0 0 0 0 1,395 0 0 0 0 0 1,395 1,395 0 632 0 0 75 0 0 557 0 557 0 0 0 557 0 0
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