-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, NDUXtRNDrK7Za5bsc03rnuC170QtQtrHu7zhZO0KxJw057s0qZoWkAlGdhZKciPv dcU9KOm0K1zZM5mrizaT7Q== 0000778792-95-000001.txt : 19950518 0000778792-95-000001.hdr.sgml : 19950518 ACCESSION NUMBER: 0000778792-95-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950512 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND CENTRAL INDEX KEY: 0000778792 STANDARD INDUSTRIAL CLASSIFICATION: 7359 IRS NUMBER: 942992019 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15438 FILM NUMBER: 95537816 BUSINESS ADDRESS: STREET 1: ONE MARKET PLAZA STE 900 STREET 2: STEUART ST TOWER CITY: SAN FRANCISCO STATE: CA ZIP: 94105-1301 BUSINESS PHONE: 4159741399 MAIL ADDRESS: STREET 1: ONE MARKET PLZ STEUART ST TOWER STREET 2: SUITE 900 CITY: SAN FRANCISCO STATE: CA ZIP: 94105 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, 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 0-15438 ----------------------- PLM Transportation Equipment Partners IXB 1986 Income Fund (Exact name of registrant as specified in its charter) California 94-2992019 (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 ______ PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS March 31, December 31, 1995 1994 Equipment held for operating leases, at cost $ 7,395,987 $ 7,462,921 Less accumulated depreciation (5,995,253) (5,944,395) ------------ ------------ Net equipment 1,400,734 1,518,526 Cash and cash equivalents 241,489 298,718 Accounts receivable, net of allowance for doubtful accounts of $121,154 in 1995 and $121,925 in 1994 22,568 34,620 Due from affiliates 7,128 -- Prepaid insurance 2,877 3,623 ------------ ------------ Total assets $ 1,674,796 $ 1,855,487 ============ ============ LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates -- $ 2,732 Accounts payable 4,627 4,112 Prepaid deposits 27,075 23,574 ----------- ----------- Total liabilities 31,702 30,418 Partners' capital (deficit): Limited Partners (24,285 units) 1,733,617 1,913,772 General Partner (90,523) (88,703) ----------- ----------- Total partners' capital 1,643,094 1,825,069 ----------- ----------- Total liabilities and partners' capital $ 1,674,796 $ 1,855,487 =========== =========== See accompanying notes to financial statements. -1- PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS For the three months ended March 31, 1995 1994 Revenues: Lease revenue $ 120,093 $ 114,948 Interest and other income 4,074 1,746 Gain (loss) on disposition of equipment 9,545 (4,683) --------- --------- Total revenues 133,712 112,011 Expenses: Depreciation 101,860 112,117 Management fees to affiliate 15,178 15,431 Repairs and maintenance 81,511 36,285 General and administrative expenses to affiliates 30,679 13,210 Other general and administrative expenses 11,983 25,612 --------- --------- Total expenses 241,211 202,655 --------- --------- Net loss $(107,499) $ (90,644) ========= ========= Partners' share of net loss: Limited Partners - 99% $(106,424) $ (89,738) General Partner - 1% (1,075) (906) --------- --------- Total $(107,499) $ (90,644) ========= ========= Net loss per Limited Partnership Unit (24,285 units) $ (4.38) $ (3.70) ========= ========= Cash distributions $ 74,476 $ 120,522 ========= ========= Cash distributions per Limited Partnership Unit $ 3.04 $ 4.91 ========= ========= See accompanying notes to financial statements. -2- PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period ended December 31, 1993 to March 31, 1995 Limited General Partners Partner Total Partners' capital (deficit) at December 31, 1993 $ 2,539,823 $ (82,379) $ 2,457,444 Net loss (131,481) (1,328) (132,809) Cash distributions (494,570) (4,996) (499,566) ----------- ----------- ----------- Partners' capital (deficit) at December 31, 1994 1,913,772 (88,703) 1,825,069 Net loss (106,424) (1,075) (107,499) Cash distributions (73,731) (745) (74,476) ----------- ----------- ----------- Partners' capital (deficit) at March 31, 1995 $ 1,733,617 $ (90,523) $ 1,643,094 =========== =========== =========== See accompanying notes to financial statements. -3- PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS For the three months ended March 31, ------------------- 1995 1994 --------- ------ Operating activities: Net loss $ (107,499) $ (90,644) Adjustments to reconcile net loss to net cash provided by operating activities: (Gain) loss on disposition of equipment (9,545) 4,683 Depreciation 101,860 112,117 Changes in operating assets and liabilities Accounts receivable, net 12,052 54,248 Due to/from affiliates (9,860) (1,187) Prepaid insurance 746 1,971 Accounts payable 515 (69,565) Prepaid deposits 3,501 (7,733) ---------- ---------- Net cash (used in) provided by operating activities (8,230) 3,890 ---------- ---------- Investing activities: Proceeds from disposition of equipment 26,353 59,600 Payments for purchase of capital improvements (876) -- ---------- ---------- Net cash provided by investing activities 25,477 59,600 ---------- ---------- Cash flows used in financing activities: Cash distributions paid to partners (74,476) (120,522) ---------- ---------- Cash and cash equivalents: Net decrease in cash and cash equivalents (57,229) (57,032) Cash and cash equivalents at beginning of period 298,718 335,234 ---------- ---------- Cash and cash equivalents at end of period $ 241,489 $ 278,202 ========== ========== See accompanying notes to financial statements. -4- PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1995, the statements of operations and cash flows for the three months ended March 31, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Reclassifications Certain amounts in the 1994 financial statements have been reclassified to conform to the 1995 presentations. 3. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows: March 31, December 31, 1995 1994 Rail equipment $ 783,870 $ 783,870 Marine containers 1,498,075 1,526,759 Commuter aircraft 3,076,382 3,076,382 Trailers 2,037,660 2,075,910 ------------ ------------ 7,395,987 7,462,921 Less accumulated depreciation (5,995,253) (5,944,395) ------------ ------------ Net equipment $ 1,400,734 $ 1,518,526 ============ ============ With the exception of the commuter aircraft, all equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of March 31, 1995. The carrying value of the off-lease equipment was $550,535 and $595,620 at March 31, 1995 and December 31, 1994, respectively. During the three months ended March 31, 1995, the Partnership disposed of or sold one trailer and two marine containers with an aggregate book value of $16,808 for proceeds of $26,353. During the three months ended March 31, 1994, the Partnership sold nine trailers with a book value of $64,283 for proceeds of $59,600. -5- PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS March 31, December 31, 1995 1994 Equipment held for operating leases, at cost $ 5,248,250 $ 5,309,856 Less accumulated depreciation (4,201,029) (4,180,140) ------------ ------------ Net equipment 1,047,221 1,129,716 Cash and cash equivalents 351,665 492,060 Accounts receivable, net of allowance for doubtful accounts of $40,432 in 1995 and $17,600 in 1994 42,808 66,451 Prepaid insurance 2,297 2,960 ------------ ------------ Total assets $ 1,443,991 $ 1,691,187 ============ ============ LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 2,238 $ 6,063 Accounts payable and other liabilities 4,315 11,411 Prepaid deposits 16,993 16,384 ------------ ------------ Total liabilities 23,546 33,858 Partners' capital (deficit): Limited Partners (17,460 units) 1,483,107 1,717,622 General Partner (62,662) (60,293) ------------ ------------ Total partners' capital 1,420,445 1,657,329 ------------ ------------ Total liabilities and partners' capital $ 1,443,991 $ 1,691,187 ============ ============ See accompanying notes to financial statements. -6- PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS For the three months ended March 31, 1995 1994 Revenues: Lease revenue $ 145,558 $ 166,974 Interest and other income 6,291 2,589 Gain on disposition of equipment 17,544 84,546 --------- --------- Total revenues 169,393 254,109 Expenses: Depreciation 71,098 107,714 Management fees to affiliate 10,913 15,017 Repairs and maintenance 17,006 16,734 General and administrative expenses to affiliates 29,293 17,312 Other general and administrative expenses 19,609 10,799 Bad debt expense 22,833 -- --------- --------- Total expenses 170,752 167,576 --------- --------- Net income (loss) $ (1,359) $ 86,533 ========= ========= Partners' share of net income (loss): Limited Partners - 99% $ (1,345) $ 85,668 General Partner - 1% (14) 865 --------- ------ Total $ (1,359) $ 86,533 ========= ====== Net income (loss) per Limited Partnership Unit (17,460 units) $ (0.08) $ 4.91 ========= ====== Cash distributions $ 235,525 $192,874 ========= ====== Cash distribution per Limited Partnership Unit $ 13.35 $ 10.94 ========= ====== See accompanying notes to financial statements. -7- PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period ended December 31, 1993 to March 31, 1995 Limited General Partners Partner Total Partners' capital (deficit) at December 31, 1993 $ 2,294,154 $ (54,470) $ 2,239,684 Net income 276,677 2,795 279,472 Cash distributions (853,209) (8,618) (861,827) ----------- ----------- ----------- Partners' capital (deficit) at December 31, 1994 1,717,622 (60,293) 1,657,329 Net loss (1,345) (14) (1,359) Cash distributions (233,170) (2,355) (235,525) ----------- ----------- ----------- Partners' capital (deficit) at March 31, 1995 $ 1,483,107 $ (62,662) $ 1,420,445 =========== =========== =========== See accompanying notes to financial statements. -8- PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS For the three months ended March 31, ------------------- 1995 1994 --------- ------- Operating activities: Net income (loss) $ (1,359) $ 86,533 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 71,098 107,714 Gain on disposition of equipment (17,544) (84,546) Changes in operating assets and liabilities Accounts receivable, net 23,643 27,276 Prepaid insurance 663 1,647 Due to affiliates (3,825) (5,970) Accounts payable (7,096) 2,451 Prepaid deposits 609 -- ---------- ---------- Net cash provided by operating activities 66,189 135,105 ---------- ---------- Cash flows provided by investing activities: Proceeds from disposition of equipment 28,941 120,000 ---------- ---------- Cash flows used in financing activities: Cash distributions paid to partners (235,525) (192,874) ---------- ---------- Cash and cash equivalents: Net (decrease) increase in cash and cash equivalents (140,395) 62,231 Cash and cash equivalents at beginning of period 492,060 455,659 ---------- ---------- Cash and cash equivalents at end of period $ 351,665 $ 517,890 ========== ========== See accompanying notes to financial statements. -9- PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1995, the statements of income and cash flows for the three months ended March 31, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Reclassifications Certain amounts in the 1994 financial statements have been reclassified to conform to the 1995 presentation. 3. Equipment Equipment held for operating leases is stated at cost. The components of equipment at March 31, 1995, and December 31, 1994, are as follows: March 31, December 31, 1995 1994 Rail equipment $ 867,300 $ 867,300 Marine containers 461,321 483,606 Aircraft 1,492,368 1,492,368 Trailers and tractors 2,427,261 2,466,582 ------------ ------------ 5,248,250 5,309,856 Less accumulated depreciation (4,201,029) (4,180,140) ------------ ------------ Net equipment $ 1,047,221 $ 1,129,716 ============ ============ With the exception of a sidelift, all equipment was either on lease or operating in PLM affiliated short-term rental facilities as of March 31, 1995. The carrying value of the off-lease equipment was $92,876 at March 31, 1995. During the three months ended March 31, 1995, the Partnership sold or disposed of one trailer and one marine container with an aggregate book value of $11,397 for proceeds of $28,941. During the three months ended March 31, 1994, the Partnership sold eight tractors with a book value of $35,454 for proceeds of $120,000. -10- PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS March 31, December 31, 1995 1994 Equipment held for operating leases, at cost $ 5,082,353 $ 5,082,353 Less accumulated depreciation (4,049,798) (3,980,922) ------------ ------------ 1,032,555 1,101,431 Equipment held for sale -- 273,875 ------------ ------------ Net equipment 1,032,555 1,375,216 Cash and cash equivalents 777,206 312,230 Restricted cash 6,600 6,600 Accounts receivable, net of allowance for doubtful accounts of $32,935 in 1995 and $31,642 in 1994 53,345 106,868 Due from affiliates 19,775 20,035 Prepaid expenses and other assets 26,496 28,583 ------------ ------------ Total assets $ 1,915,977 $ 1,849,532 ============ ============ LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accounts payable $ 16,635 $ 8,178 Prepaid deposits and reserves 23,405 48,612 ------------ ------------ Total liabilities 40,040 56,790 Partners' capital (deficit): Limited Partners (16,914 units) 1,931,639 1,849,276 General Partner (55,702) (56,534) ------------ ------------ Total partners' capital 1,875,937 1,792,742 ------------ ------------ Total liabilities and partners' capital $ 1,915,977 $ 1,849,532 ============ ============ See accompanying notes to financial statements. -11- PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME For the three months ended March 31, 1995 1994 Revenues: Lease revenue $ 190,510 $ 219,781 Interest and other income 6,541 1,228 Gain (loss) on disposition of equipment 236,072 (19) --------- --------- Total revenues 433,123 220,990 Expenses: Depreciation 75,473 81,831 Management fees to affiliate 13,649 18,825 Repairs and maintenance 48,958 24,890 General and administrative expenses to affiliates 48,283 48,223 Other general and administrative expenses 8,542 15,616 --------- --------- Total expenses 194,905 189,385 --------- --------- Net income $ 238,218 $ 31,605 ========= ========= Partners' share of net income: Limited Partners - 99% $ 235,836 $ 31,289 General Partner - 1% 2,382 316 --------- --------- Total $ 238,218 $ 31,605 ========= ========= Net income per Limited Partnership Unit (16,914 units) $ 13.94 $ 1.85 ========= ========= Cash distributions $ 155,023 $ 94,520 ========= ========= Cash distribution per Limited Partnership Unit $ 9.07 $ 5.53 ========= ========= See accompanying notes to financial statements. -12- PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period ended December 31, 1993 to March 31, 1995 Limited General Partners Partner Total Partners' capital (deficit) at December 31, 1993 $ 2,080,643 $ (54,197) $ 2,026,446 Net income 153,332 1,549 154,881 Cash distributions (384,699) (3,886) (388,585) ----------- ----------- ----------- Partners' capital (deficit) at December 31, 1994 1,849,276 (56,534) 1,792,742 Net income 235,836 2,382 238,218 Cash distributions (153,473) (1,550) (155,023) ----------- ----------- ----------- Partners' capital (deficit) at March 31, 1995 $ 1,931,639 $ (55,702) $ 1,875,937 =========== =========== =========== See accompanying notes to financial statements. -13- PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS For the three months ended March 31, -------------------- 1995 1994 --------- ------- Operating activities: Net income $ 238,218 $ 31,605 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 75,473 81,831 Gain (loss) on disposition of equipment (236,072) 19 Change in operating assets and liabilities Accounts receivable, net 53,523 22,783 Due from affiliates 260 2,064 Prepaid deposits and reserves (25,207) 13,464 Prepaid expenses and other assets 889 3,048 Accounts payable and other liabilities 8,457 (14,237) ---------- ---------- Net cash provided by operating activities 115,541 140,577 ---------- ---------- Investing activities: Proceeds from disposition of equipment 503,260 6,000 Payments received on finance leases 1,198 -- ---------- ---------- Net cash provided by investing activities 504,458 6,000 ---------- ---------- Cash flows used in financing activities: Cash distributions paid to partners (155,023) (94,520) ---------- ---------- Cash and cash equivalents: Net increase in cash and cash equivalents 464,976 52,057 Cash and cash equivalents at beginning of period 312,230 144,131 ---------- ---------- Cash and cash equivalents at end of period $ 777,206 $ 196,188 ========== ========== See accompanying notes to financial statements. -14- PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1995, the statements of income and cash flows for the three months ended March 31, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Reclassifications Certain amounts in the 1994 financial statements have been reclassified to conform to the 1995 presentation. 3. Equipment Equipment held for operating leases is stated at cost. Equipment held for sale is stated at the lower of the equipment's depreciated cost or net realizable value and is subject to a pending contract for sale. The components of equipment are as follows: March 31, December 31, 1995 1994 Rail equipment $ 178,501 $ 178,501 Marine containers 160,473 160,473 Aircraft 913,188 913,188 Trailers and tractors 3,830,191 3,830,191 ------------ ------------ 5,082,353 5,082,353 Less accumulated depreciation (4,049,798) (3,980,922) ------------ ------------ 1,032,555 1,101,431 Equipment held for sale -- 273,785 ------------ ------------ Net equipment $ 1,032,555 $ 1,375,216 ============ ============ With the exception of two trailers, all of the equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of March 31, 1995. The carrying value of equipment off-lease was $16,119 and $164,271 at March 31, 1995 and December 31, 1994, respectively. During the three months ended March 31, 1995, the Partnership sold five twin stack railcars of which three railcars were off-lease at the end of 1994, with a book value of $267,188 for proceeds of $503,260. During the three months ended March 31, 1994, the Partnership sold one trailer with a net book value of $6,019 for proceeds of $6,000. -15- PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS March 31, December 31, 1995 1994 Equipment held for operating leases, at cost $ 2,007,969 $ 3,041,954 Less accumulated depreciation (1,562,073) (2,332,144) ------------ ------------ Net equipment 445,896 709,810 Cash and cash equivalents 546,613 524,782 Accounts receivable, net of allowance for doubtful accounts of $43,551 in 1995 and $6,481 in 1994 48,706 116,088 Due from affiliate 7,639 1,744 Prepaid insurance and other assets 32,338 37,668 ------------ ------------ Total assets $ 1,081,192 $ 1,390,092 ============ ============ LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accounts payable and other liabilities $ 22,696 $ 5,060 Partners' capital (deficit): Limited Partners (9,529 units) 1,089,738 1,413,009 General Partner (31,242) (27,977) ------------ ------------ Total partners' capital 1,058,496 1,385,032 ------------ ------------ Total liabilities and partners' capital $ 1,081,192 $ 1,390,092 ============ ============ See accompanying notes to financial statements. -16- PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS For the three months ended March 31, 1995 1994 Revenues: Lease revenue $ 79,538 $ 128,227 Interest and other income 8,651 4,132 Gain on disposition of equipment 15,453 4,281 --------- --------- Total revenues 103,642 136,641 Expenses: Depreciation 35,953 43,519 Management fees to affiliate 6,383 14,636 Repairs and maintenance 21,879 6,559 General and administrative expenses to affiliates 22,611 18,885 Other general and administrative expenses 22,664 5,162 Bad debt expense 37,070 7,046 --------- --------- Total expenses 146,560 95,807 --------- --------- Net income (loss) $ (42,918) $ 40,834 ========= ========= Partners' share of net income (loss): Limited Partners-99% $ (42,489) $ 40,426 General Partner-1% (429) 408 --------- --------- Total $ (42,918) $ 40,834 ========= ========= Net income (loss) per Limited Partnership Unit (9,529 units) $ (4.46) $ 4.24 ========= ========= Cash distributions $ 283,618 $ 147,799 ========= ========= Cash distribution per Limited Partnership Unit $ 29.47 $ 15.36 ========= ========= See accompanying notes to financial statements. -17- PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period ended December 31, 1993 to March 31, 1995 Limited General Partners Partner Total Partners' capital (deficit) at December 31, 1993 $ 1,615,924 $ (25,928) $ 1,589,996 Net income 191,753 1,937 193,690 Cash distributions (394,668) (3,986) (398,654) ----------- ----------- ----------- Partners' capital (deficit) at December 31, 1994 1,413,009 (27,977) 1,385,032 Net loss (42,489) (429) (42,918) Cash distributions (280,782) (2,836) (283,618) ----------- ----------- ----------- Partners' capital (deficit) at March 31, 1995 $ 1,089,738 $ (31,242) $ 1,058,496 =========== =========== =========== See accompanying notes to financial statements. -18- PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS For the three months ended March 31, ------------------- 1995 1994 ---------- ------- Operating activities: Net income (loss) $ (42,918) $ 40,834 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Gain on disposition of equipment (15,453) (4,281) Depreciation 35,953 43,519 Change in operating assets and liabilities Accounts receivable, net 67,382 28,081 Due from affiliate (5,895) (2,665) Prepaid insurance and other assets 534 99 Accounts payable and other liabilities 17,636 (8,370) ---------- ---------- Net cash provided by operating activities 57,239 97,217 ---------- ---------- Investing activities: Proceeds from disposition of equipment 243,414 6,583 Payments received on finance leases 4,796 4,340 ---------- ---------- Net cash provided by investing activities 248,210 10,923 ---------- ---------- Cash flow used in financing activities: Cash distributions paid to partners (283,618) (147,799) ---------- ---------- Cash and cash equivalents: Net increase (decrease) in cash and cash equivalents 21,831 (39,659) Cash and cash equivalents at beginning of period 524,782 528,006 ---------- ---------- Cash and cash equivalents at end of period $ 546,613 $ 488,407 ========== ========== See accompanying notes to financial statements. -19- PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1995, and the statements of operations and cash flows for the three months ended March 31, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Reclassifications Certain amounts in the 1994 financial statements have been reclassified to conform to the 1995 presentation. 3. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows: March 31, December 31, 1995 1994 Marine Containers $ 402,481 $ 417,961 Trailers 1,605,488 2,623,993 ----------- ----------- 2,007,969 3,041,954 Less accumulated depreciation (1,562,073) (2,332,144) ----------- ----------- Net equipment $ 445,896 $ 709,810 =========== =========== All equipment owned by the Partnership was either on lease or operating in PLM-affiliated short-term rental facilities as of March 31, 1995. During the three months ended March 31, 1995, the Partnership disposed of or sold 24 trailers and eight marine containers with an aggregate net book value of $227,961 for proceeds of $243,414. During the three months ended March 31, 1994, the Partnership disposed of four marine containers with a net book value of $2,302 for proceeds of $6,583. -20- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources (a) Sources The Partnerships' primary source of liquidity is operating cash flow. Proceeds realized from the sale or disposal of equipment are generally distributed to the partners. The Partnerships' initial source of capital was proceeds from their initial public offering of limited partnership units. (b) Asset Sales Equipment sales and dispositions prior to the Partnerships' planned liquidation phase generally result from either the exercise by lessees of fair market value purchase options provided for in certain leases, or the payment of stipulated loss values on equipment lost or disposed of during the time it is subject to lease agreements. Such disposal of equipment results unpredictably from the wear, tear, and general risk of normal operations. During the three months ended March 31, 1995, one trailer and two marine containers owned by TEP IXA were sold or disposed of for a total of $26,353; one trailer and one marine container owned by TEP IXB were sold for a total of $28,941; five twin stack railcars owned by TEP IXC were sold for $503,260; and 24 trailers and eight marine container owned by TEP IXD were sold or disposed of for $243,414. Comparison of the Partnership's Operating Results for the Three Months Ended March 31, 1995 and 1994 TEP IXA (A) Revenues Total revenues of $133,712 for the quarter ended March 31, 1995, increased from $112,011 for the same period in 1994, due primarily to a gain recorded on the sale of assets during 1995 compared to a loss during 1994. (1) Lease revenue increased to $120,093 in the first quarter 1995, from $114,948 in the same period of 1994. The following table lists lease revenues earned by equipment type: For the three months ended March 31, 1995 1994 ---------- ------- Trailers $ 70,855 $ 54,447 Rail equipment 25,950 29,786 Marine containers 23,288 30,714 -------- -------- $120,093 $114,947 ======== ======== -21- This increase was due primarily to the following: (a) Trailer revenue increased $16,408 due to an increase in utilization for TEP IXA trailers in short-term rental facilities in 1995 as compared to 1994. This increase was offset, in part, by a decrease in trailer revenue due to the sale of 12 trailers, one yardster and one forklift in 1994 and one trailer in 1995; (b) Marine container revenue decreased $7,426 due to the disposal of six marine containers in 1994 and two in 1995, and a decline in utilization of the reefer fleet from 1994 levels; (c) Rail revenue decreased $3,836 from 1994 levels due to the lower re- lease rate on the trailmobile yardster. (2) For the quarter ended March 31, 1995, the Partnership realized a gain of $9,545 on the sale or disposition of one trailer and two marine containers, compared to the same period in 1994, where the Partnership realized a loss of $4,683 on the sale of nine trailers. (B) Expenses Total expenses of $241,211 for the quarter ended March 31, 1995, increased from $202,655 for the same period in 1994. The increase in 1995 expenses was attributable to increases in repairs and maintenance, partially offset by decreases in depreciation expense. (1) Direct operating expenses (defined as repairs and maintenance) increased to $81,511 in 1995, from $36,285 in 1994. This increase was due primarily to the refurbishment required on the Partnership's aircraft that came off-lease in the beginning of 1995. This increase was slightly offset by a decrease in repairs and maintenance for trailers in the short-term rental facilities. In the first quarter of 1994, repairs were made on former term lease trailers prior to transitioning into the short-term rental facilities. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $159,700 in the first quarter 1995, from $166,370 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $10,257 from 1994 levels reflecting assets sales during 1995 and 1994; (b) an increase of $14,956 in general and administrative expenses from 1994 levels due to higher administrative costs associated with the Partnership. (C) Net Loss The Partnership's net loss increased to $107,499 in the first quarter 1995, from a net loss of $90,644 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the -22- Partnership's performance in the first quarter 1995, is not necessarily indicative of future periods. In the first quarter 1995, the Partnership distributed $73,732 to the Limited Partners, or approximately $3.04 per unit. TEP IXB (A) Revenues Total revenues of $169,393 for the quarter ended March 31, 1995, decreased from $254,109 for the same period in 1994 due primarily to a smaller gain from the sale of equipment in 1995 when compared to 1994. (1) Lease revenue decreased to $145,558 in the first quarter 1995, from $166,974 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the three months ended March 31, 1995 1994 Trailers and tractors $ 72,503 $ 66,057 Aircraft 48,593 48,593 Rail equipment 16,027 42,150 Marine containers 8,435 10,174 --------- --------- $ 145,558 $ 166,974 ========= ========= The decline was due primarily to the following: (a) Railcar revenue decreased $26,123 due to the sale of the letro porter in the third quarter of 1994, and the off-lease status of the sidelift at the beginning of the first quarter of 1995; (b) Trailer and tractor revenue increased $6,446 due to an increase in trailer revenues as trailers completed the transition from term leases to operation in the short-term rental facilities. Trailers operating in short-term rental facilities generate higher per day revenue than term lease trailers. The revenue increases were offset by the sale of 13 tractors and six trailers in 1994 and one trailer in 1995. (2) For the quarter ended March 31, 1995, the Partnership realized a gain of $17,544 on the sale or disposition of one trailer and one marine container, compared to the same period in 1994, where the Partnership realized a gain of $84,546 on the sale of eight tractors. (B) Expenses Total expenses of $170,752 for the quarter ended March 31, 1995, increased slightly from $167,576 for the same period in 1994. The increase in 1995 expenses was attributable primarily to increases in general and administrative expenses, and bad debt expenses, partially offset by decreases in depreciation and management fees. -23- (1) Direct operating expenses (defined as repairs and maintenance) increased slightly to $17,006 in the first quarter 1995, from $16,734 in the same period in 1994. This increase was attributable to an increase in shop repairs for the Partnership's railcars, offset by a decrease in repairs and maintenance due to the sale of six trailers in 1994 and one trailer in 1995. (2) Indirect operating expenses (defined as depreciation expense, management fees, all general and administrative expenses, and bad debt expense) increased slightly to $153,746 in the first quarter 1995, from $150,842 in the same period in 1994. This change resulted primarily from: (a) an increase of $20,791 in general and administrative expenses from 1994 levels. This reflects the increased administrative costs associated with the short-term rental facilities due to increased volume of trailers operating in these facilities; (b) an increase of $22,833 in bad debt expense due to the General Partner's evaluation of the collectability of receivables due from trailer rental yard lessees; (c) a decrease in depreciation expense of $36,616 from 1994 levels reflecting assets sales during 1995 and 1994; (d) a decrease in management fees to affiliate of $4,104 from 1994 levels due to lower levels of operating cash flow during the comparable periods. Management fees are calculated as the greater of 10% of the Partnership's Operating Cash Flow, or 1/2 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement. (C) Net Income (Loss) The Partnership's net loss of $1,359 in the first quarter 1995, decreased from a net income of $86,533 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the first quarter 1995, is not necessarily indicative of future periods. In the first quarter 1995, the Partnership distributed $233,170 to the Limited Partners, or approximately $13.35 per unit. TEP IXC (A) Revenues Total revenues for the quarter ended March 31, 1995, increased to $433,123 from $220,990 for the same period in 1994, due primarily to a gain recorded from the sale of assets in 1995 compared to a loss on the sale of assets during 1994. -24- (1) Lease revenue decreased to $190,510 in the first quarter 1995, from $219,781 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the three months ended March 31, 1995 1994 Trailers and tractors $ 153,328 $ 173,655 Aircraft 17,100 21,863 Rail equipment 16,934 21,183 Marine containers 3,148 3,080 --------- --------- $ 190,510 $ 219,781 ========= ========= The decline was due primarily to the following: (a) Trailer revenue decreased $20,327 in 1995 as compared to 1994 levels due to lower utilization in short-term rental facilities in 1995 compared to 1994 levels, and the sale of four trailers in 1994; (b) Aircraft revenue decreased $4,763 in 1995, as compared to 1994 levels, due to the terms of the original lease agreement which called for a decrease in rate for 1995; (c) Rail revenue decreased $4,249 in 1995 as compared to 1994 levels due to the sale of five twin stack railcars in the first quarter of 1995. (2) For the quarter ended March 31, 1995, the Partnership realized a gain of $236,072 on the sale of five twin stack railcars, compared to the same period in 1994, where the Partnership realized a loss of $19 on the sale of one trailer. (3) Interest and other income increased $5,313 due to an increase in excess cash available for short-term investment. (B) Expenses Total expenses of $194,905 for the quarter ended March 31, 1995, increased from $189,385 for the same period in 1994. The increase in 1995 expenses was attributable to increases in repairs and maintenance, offset by decreases in depreciation and management fees. (1) Direct operating expenses (defined as repairs and maintenance) increased to $48,958 in the first quarter 1995, from $24,890 in the same period in 1994. This increase was attributable to higher maintenance expense incurred on the increased trailers in the short-term rental facilities as compared to the same period in 1994 when some rental yard trailers were on net term leases. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $145,947 in the first quarter 1995, from $164,495 in the same period in 1994. -25- This change resulted primarily from: (a) a decrease in general and administrative expenses of $7,014 due to lower administrative costs associated with the Partnership; (b) a decrease in depreciation expense of $6,358 from 1994 levels reflecting asset sales during 1995; (c) a decrease in management fees to affiliate of $5,176 from 1994 levels due to lower levels of operating cash flows during 1995. Management fees are calculated as the greater of 10% of the Partnership's operating cash flow, or 1/12 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement. (C) Net Income The Partnership's net income increased to $238,218 in the first quarter 1995, from $31,605 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the first quarter 1995, is not necessarily indicative of future periods. In the first quarter 1995, the Partnership distributed $153,473 to the Limited Partners, or approximately $9.07 per unit. TEP IXD (A) Revenues Total revenues of $103,642 for the quarter ended March 31, 1995 decreased from $136,641 for the same period in 1994 due primarily to lower lease revenues. (1) Lease revenues decreased to $79,538 in the first quarter 1995, from $128,227 in the same period in 1994. The following table lists lease revenue earned by equipment type: For the three months ended March 31, 1995 1994 Trailers $ 57,210 $ 110,767 Marine containers 22,328 17,460 --------- --------- $ 79,538 $ 128,227 ========= ========= The decrease was due to the following: (a) Trailer revenue decreased $53,557 due primarily to the sale of 24 trailers in the first quarter of 1995, and low utilization in short-term rental facilities operated by an affiliate of the General Partner; (b) Marine container revenue increased $4,868 primarily due to an increase in utilization for dry marine containers from 1994 levels, offset by a decrease in revenue due to the disposal of eight marine containers in 1995 and 24 in 1994. -26- (2) For the quarter ended March 31, 1995, the Partnership realized a gain of $15,453 on the sale of 24 trailers and eight marine containers, compared to the same period in 1994, where the Partnership realized a gain $4,281 on the disposition of four marine containers. (3) Interest and other income increased $4,522 due to an increase in excess cash available for short-term investment. (B) Expenses Total expenses of $146,560 for the quarter ended March 31, 1995, increased from $95,807 for the same period in 1994. The increase in 1995 expenses was attributable primarily to increases in bad debt expense, all general and administrative expenses and repair and maintenance, partially offset by decreases in management fees and depreciation. (1) Direct operating expenses (defined as repairs and maintenance) increased to $21,879 in the first quarter 1995, from $6,559 in the same period in 1994. This change resulted primarily from the refurbishment of 24 trailers prior to being sold. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and all general and administrative expenses) increased to $124,681 in the first quarter 1995, from $89,248 in the same period in 1994. This change resulted primarily from: (a) an increase of $30,024 in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (b) an increase of $21,228 in general and administrative expenses from 1994 levels due to higher administrative costs associated with the short-term rental facilities; (c) a decrease in management fees to affiliate of $8,253 from 1994 levels due to changes in the level of operating cash flow between the two years. Management fees are calculated monthly as the greater of 10% of Partnership's Operating Cash Flow, or 1/12 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement; (d) a decrease in depreciation expense of $7,566 from 1994 levels, reflecting asset sales during 1995. (C) Net Income (Loss) The Partnership's net loss of $42,918 in the first quarter 1995, decreased from a net income of $40,834 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the first quarter 1995, is not necessarily indicative of future periods. In the first quarter 1995, the Partnership distributed $280,782 to the Limited Partners, or approximately $29.47 per unit. -27- Trends Inflation and changing prices did not materially impact the Partnerships' revenues or expenses during the reported periods. -28- PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits None. (b) Reports on Form 8-K None. -29- Pursuant to the requirements of Securities and Exchange Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PLM Transportation Equipment Partners IXB 1986 Income Fund By: PLM Financial Services, Inc. General Partner Date: May 11, 1995 By: /s/David J. Davis --------------------------- David J. Davis Vice President and Corporate Controller -30- EX-27 2
5 3-MOS DEC-31-1995 MAR-31-1995 351,665 0 42,808 40,432 0 0 5,248,250 4,201,029 1,443,991 0 0 0 0 0 1,420,445 1,443,991 0 169,393 0 170,752 0 0 0 (1,359) 0 (1,359) 0 0 0 (1,359) 0 0
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