-----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, KklTEjJo3ivFa8RSH5GaJXIsAOwNdTOK5DorztU/kekBqmjCZtONkKWEAovgEaxa VeL54cXgj0UUjxadZ2DI8g== 0000756939-95-000005.txt : 19951107 0000756939-95-000005.hdr.sgml : 19951107 ACCESSION NUMBER: 0000756939-95-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951106 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEASTEC INCOME FUND 1985-I CENTRAL INDEX KEY: 0000756939 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER RENTAL & LEASING [7377] IRS NUMBER: 680050859 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14474 FILM NUMBER: 95587618 BUSINESS ADDRESS: STREET 1: 2855 MITCHELL DRIVE STREET 2: STE 215 CITY: WALNUT CREEK STATE: CA ZIP: 94598 BUSINESS PHONE: 5109383443 MAIL ADDRESS: STREET 1: 2855 MITCHELL DRIVE STREET 2: SUITE 215 CITY: WALNUT CREEK STATE: CA ZIP: 94598 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended Sept 30, 1995 Commission file number 2-94054-LA Leastec Income Fund 1985-1, A California Limited Partnership (Exact name of registrant as specified in its charter) California 68-0050859 (State or other jurisdiction of (IRS Employer Identification incorporation or organization) number) 2855 Mitchell Drive, Suite 215, Walnut Creek, California 94598 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (510) 938-3443 ________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report) 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 __ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: N/A Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ___ No ___ APPLICABLE ONLY TO CORPORATE ISSUERS: N/A Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 1 Part 1. Financial Information LEASTEC INCOME FUND 1985-1 A CALIFORNIA LIMITED PARTNERSHIP CONDENSED BALANCE SHEETS (UNAUDITED)
September 30 December 31 1995 1994 ------------- ----------- ASSETS: Cash $292,765 $293,456 Accounts receivable 360 6,932 Net investment in direct financing 233,460 400,051 leases Equipment on operating leases, net of accumulated depreciation of $-0- in 1995 and $ 1,338,858 in 1994 -0- 78,984 -------- -------- Total assets $526,585 $779,423 ======== ======== LIABILITIES AND PARTNERS' CAPITAL: Liabilities: Payable to affiliates $ 10,266 $ 15,735 Accounts payable 41,391 67,972 Deposits 16,726 35,054 Prepaid rental income -0- 4,220 Distributions payable 125,000 120,000 Notes payable -0- 115,580 -------- -------- Total liabilities 193,383 358,561 -------- -------- Partners' capital: Partners' capital 333,202 420,862 -------- -------- Total partners' capital 333,202 420,862 -------- -------- Total liabilities & partners'capital $526,585 $779,423 ======== ======== The accompanying notes are an integral part of these condensed financial statements.
LEASTEC INCOME FUND 1985-1 A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Nine Months Quarter Ended Ended September 30 September 30 1995 1994 1995 1994 ----------------- ------------------ REVENUE: Rental income $179,447 $346,177 $ 23,917 $110,686 Direct financing lease income 26,631 61,833 6,172 16,427 Gain on sale of equipment 257,823 40,792 -0- 20,260 Interest income 4,883 11,426 1,737 2,895 Other income (loss) (1,030) 5,453 (6,856) 4,527 -------- -------- -------- -------- Total revenues 467,754 465,681 24,970 154,795 -------- -------- -------- -------- EXPENSES: Depreciation 78,186 128,886 -0- 49,327 Management fees 40,098 45,607 6,832 12,627 General & administrative 95,406 150,797 31,117 48,612 Data processing 10,890 17,258 2,107 3,320 Interest expens 5,835 49,154 -0- 29,821 -------- -------- ------- -------- Total expenses 230,415 391,702 40,056 143,707 -------- -------- ------- -------- Net Income (loss) $237,339 $ 73,979 $(15,086) $ 11,088 ======== ======== ======== ======= Net income (loss) per limited partnership unit $ 7.98 $ 2.48 $ (0.51) $ 0.37 ======== ======== ======== ======== The accompanying notes are an integral part of these condensed financial statements.
LEASTEC INCOME FUND 1985-1 A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended September 30 1995 1994 -------- -------- Cash flows from operating activities: Net income $ 237,339 $ 73,979 Adjustments to reconcile net income to net cash provided by operating activities: Accumulated depreciation 78,186 128,886 Gain on disposition of equipment (257,823) (40,792) Other income 0 (167) Change in assets and liabilities: Decrease (increase) in accounts receivable 6,572 (38,340) Decrease in notes receivable 0 62,998 (Decrease) increase in payable to affiliates (5,469) 6,151 Decrease in accounts payable (26,581) (32,079) Decrease (increase) in deposits (18,328) (44,054) Decrease in prepaid rental income (4,200) (5,337) Decrease in distributions payable 5,000 (60,000) --------- --------- Net cash provided by operating activities 14,676 51,245 --------- --------- Cash flows from investing activities: Proceeds from disposition of equipment 263,222 56,100 Decrease in net investment in direct financing leases 161,991 340,411 --------- --------- Net cash provided by investing activites 425,213 396,511 -------- --------- Cash flows from financing activities: Repayment of notes payable (115,580) (133,647) Net distributions to partners (325,000) (329,991) Net cash used in financing activities (440,580) (463,638) --------- --------- Net decrease in cash (691) (15,882) Cash at beginning of period 293,456 188,987 --------- --------- Cash at end of period $ 292,765 $ 173,105 ========= ========= The accompanying notes are an integral part of these condensed financial statements.
LEASTEC INCOME FUND 1985-1 A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 1995, SEPTEMBER 30, 1994 AND DECEMBER 31, 1994 (UNAUDITED) 1. Basis of Condensed Financial Statement Preparation -------------------------------------------------- In the opinion of the General Partner, the accompanying unaudited condensed financial statements contain all adjustments (consisting principally of normal, recurring accruals) necessary to present fairly the financial position of Leastec Income Fund 1985-1 (the Partnership) as of September 30, 1995, September 30, 1994 and December 31, 1994. As provided for in the Partnership agreement and offering document, the Partnership engaged in leasing activities which intended to be completed in approximately eleven years from its inception at which time all remaining partnership assets will have been liquidated and cash proceeds distributed to the registrant's partners. The Partnership has presented its 1995 financial statements to reflect its leasing activities on a basis consistent with prior periods. 2. Wind Down Phase --------------- The Registrant has ceased acquisition of new capital equipment and is in the process of liquidating its lease portfolio. It is intended that the Registrant will be fully liquidated at the end of its tenth full year of operation, December 1995. LEASTEC INCOME FUND 1985-1 A CALIFORNIA LIMITED PARTNERSHIP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operation - -------------------- The Registrant has been winding down operations since 1993 by discontinuing new leasing activities and returning cash available from operations to the Registrant's Partners. Although the Registrant has until December 1997 to liquidate operations, the Registrant intends to be fully liquidated by December 1995. In order to complete the liquidation of all assets by the end of 1995, it is the General Partner's policy to allow the early termination of leases when requested as well as to seek the sale of leased assets in which the lease may extend beyond December 1995. The General Partner does not anticipate that the cash proceeds from liquidation will return 100% of the investors original capital contribution. All the Registrant's operating leases have terminated and the underlying equipment has been sold. The remaining balance of the lease portfolio is invested in Direct Finance leases which terminate with the lessee's contractually required purchase of equipment. The income and expenses of the Registrant are steadily declining as the lease portfolio size declines. The cash balances and the related interest income fluctuates according to the cash flow from rents and equipment and finance lease sales during each quarter. Cash is distributed to the Partners according to their respective tax basis capital accounts. The final liquidating distribution will be paid by the Registrant in April of 1996 after the final audit is completed. The Registrant reported a net income of $237,339 or $ 7.95 per Limited Partnership Unit for the nine months ended September 30, 1995 as compared to net income of $73,979 or $2.48 per Limited Partnership Unit for the nine months ended September 30, 1994. The increase in net income reflects a decrease in general and administrative expense from $150,797 for the nine months ended September 30, 1994 to $95,406 for the same period in 1995 and an increase in gain on sale of equipment from $40,792 for first nine months of 1994, compared to $257,823 for the same period in 1995. The majority of the increase in the gain on sale of equipment was the sale of equipment from a terminated operating lease which accounted for a gain on sale of $222,944. Total revenues for the nine months ended September 30, 1995 were $467,754 compared to $465,681 for the same period in the prior year. Revenue derived from the Fund's equipment management activities comprised 99% of the total income for the period, with the remaining 1% being interest income. Direct financing lease income decreased from September 30, 1994 to September 30, 1995 ($61,833 to $26,631 respectively). The net investment in direct financing leases decreased from $493,924 at September 30, 1994 to $233,460 at September 30, 1995. Interest income decreased because the Registrant held smaller cash balances during the first nine months of 1995 as compared to the same period in the prior year. All available cash is being paid out in distributions to the Fund's partners on a quarterly basis. As stated above the Registrant's final liquidating distribution will be paid in April of 1996 after the final audit of the Registrant is completed. Total expenses for the nine months ended September 30, 1995 were $230,415 compared to $391,702 for the same period in the prior year. Depreciation, management fees, interest, and general and administrative costs comprised 95% of the total expenses. Interest expense decreased from September 30, 1994 to September 30, 1995 ($49,154 to $5,835 respectively). The note payable balance was $192,271 in the first nine months of 1994 compared to a note payable balance of $-0- for the same period in 1995. Equipment on operating leases, net of depreciation decreased from $78,984 at December 31,1994 to $ 0 at September 30, 1995. A prior period adjustment to depreciation was made in the first quarter 1994 causing depreciation to decrease less than expected from $128,886 for the nine months ended September 30, 1994 to $78,186 for the nine months ended September 30, 1995. The gain on sale of equipment for the nine months ended September 30, 1995, was $257,823 a substantial increase from $40,792 for the same period in 1994. This was primarily from the sale of a large terminated lease and certain leased assets. General and administrative costs decreased from $150,797 for the first nine months of 1994 to $95,406 for the same period in 1995. Liquidity and Capital Resources - ------------------------------- Cash provided by operating activities for the nine months ended September 30, 1995, was $14,676 compared to $51,245 for the same period in the prior year. Cash provided by investing activities increased from $396,511 in the third quarter of 1994 to $425,213 for the third quarter of 1995, reflecting the increase in sales of equipment and leases. As rental payments on finance leases are received, the cash is broken up into income and return of principal. As a finance lease ages the income portion of the rental receipts decrease and the return of principal portion increases. Sales proceeds of equipment for the nine months ended September 30, 1994, totaled approximately $56,100 resulting in a $40,792 gain after depreciation expense was taken compared to $263,222 resulting in a gain of $257,823 for the same period this year. Cash provided by investing activities was used to repay $115,580 of debt during the nine months ended September 30, 1995, as compared to $133,647 for the same period in the prior year. As of September 30,1995, the Fund's partners were allocated cash distributions of $125,000 payable on October 13, 1995. The size of investor distributions depend on the timing of equipment sales and collections of rents. As a result, this amount can be expected to decrease during 1995 and to be variable in amount from quarter to quarter depending on the timing of rental receipts and direct finance lease equipment sales. The cash balance decreased from $188,987 at December 31, 1993, to $173,105 at September 30, 1994 and increased to $293,456 at December 31, 1994, and decreased to $292,765 at September 30, 1995. The cash position as of September 30, 1995, was $292,765. The General Partner anticipates that funds from operations will be adequate to cover all operating expenses and future needs of the Partnership during 1995. PART II. OTHER INFORMATION Item 1. Legal Proceedings ----------------- None. Item 2. Changes in Securities --------------------- None. Item 3. Defaults Upon Senior Securities ------------------------------- None. Item 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- None. Item 5. Other Information ----------------- None. Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits None. (b) Reports on Form 8-K None. 8 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. LEASTEC INCOME FUND 1985-1 (Registrant) LEASTEC CORPORATION (General Partner) Date: November 1, 1995 By: Ernest V. Lavagetto Ernest V. Lavagetto President EX-27 2 ARTICLE 5 FINANCIAL DATA SCHEDULE FOR 3RD QTR 10-Q
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENT. 9-MOS DEC-31-1995 SEP-30-1995 292,765 0 360 0 0 526,585 0 0 526,585 193,383 0 0 0 0 333,202 526,585 467,754 467,754 0 0 224,580 0 5,835 237,339 0 0 0 0 0 237,339 7.95 7.95 -----END PRIVACY-ENHANCED MESSAGE-----