0000778792-95-000004.txt : 19950816 0000778792-95-000004.hdr.sgml : 19950816 ACCESSION NUMBER: 0000778792-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950810 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: 95560525 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 June 30, 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
June 30, December 31, 1995 1994 Equipment held for operating leases, at cost $ 4,292,291 $ 7,462,921 Less accumulated depreciation (3,501,206) (5,944,395) Net equipment 791,085 1,518,526 Cash and cash equivalents 202,533 298,718 Accounts receivable, net of allowance for doubtful accounts of $122,133 in 1995 and $121,925 in 1994 22,639 34,620 Net investment in sales-type lease 1,090,000 -- Due from affiliates 2,941 -- Prepaid insurance 1,427 3,623 Total assets $ 2,110,625 $ 1,855,487 LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ -- $ 2,732 Accounts payable 52,575 4,112 Prepaid deposits 26,473 23,574 Total liabilities 79,048 30,418 Partners' capital (deficit): Limited Partners (24,285 units) 2,118,215 1,913,772 General Partner (86,638) (88,703) Total partners' capital 2,031,577 1,825,069 Total liabilities and partners' capital $ 2,110,625 $ 1,855,487
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended June 30, June 30, 1995 1994 1995 1994 Revenues: Lease revenue $ 120,131 $ 153,361 $ 240,224 $ 268,309 Interest and other income 3,021 1,690 7,095 3,436 Gain (loss) on disposition of equipment 535,795 -- 545,340 (4,683) Total revenues 658,947 155,051 792,659 267,062 Expenses: Depreciation 99,640 109,546 201,500 221,663 Management fees to affiliate 15,178 15,179 30,356 30,610 Repairs and maintenance 24,308 30,499 105,819 66,784 General and administrative expenses to affiliates 30,045 30,496 60,724 43,706 Other general and administrative expenses 26,829 45,335 38,812 70,947 Total expenses 196,000 231,055 437,211 433,710 Net income (loss) $ 462,947 $ (76,004) $ 355,448 $ (166,648) Partners' share of net income (loss) Limited Partners - 99% $ 458,318 $ (75,244) $ 351,894 $ (164,982) General Partner - 1% 4,629 (760) 3,554 (1,666) Total $ 462,947 $ (76,004) $ 355,448 $ (166,648) Net income (loss) per Limited Partnership Unit - 24,285 units $ 18.87 $ (3.10) $ 14.49 $ (6.79) Cash distributions $ 74,464 $ 120,521 $ 148,940 $ 241,043 Cash distributions per Limited Partnership Unit $ 3.04 $ 4.91 $ 6.07 $ 9.83
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to June 30, 1995
Limited General Partners Partners 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 income 351,894 3,554 355,448 Cash distributions (147,451) (1,489) (148,940) Partners' capital (deficit) at June 30, 1995 $ 2,118,215 $ (86,638) $ 2,031,577
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1995 1994 Operating activities: Net income (loss) $ 355,448 $ (166,648) Adjustments to reconcile net income (loss) to net cash provided by operating activities: (Gain) loss on disposition of equipment (545,340) 4,683 Depreciation 201,500 221,663 Changes in operating assets and liabilities Accounts receivable, net 11,981 71,283 Due to/from affiliates (5,673) (11,183) Prepaid insurance 2,196 3,980 Accounts payable 48,463 (74,531) Prepaid deposits (47,101) (2,430) Net cash provided by operating activities 21,474 46,817 Investing activities: Proceeds from disposition of equipment 32,157 59,600 Payments for purchase of capital improvements (876) -- Net cash provided by investing activities 31,281 59,600 Cash flows used in financing activities: Cash distributions paid to partners (148,940) (241,043) Cash and cash equivalents: Net decrease in cash and cash equivalents (96,185) (134,626) Cash and cash equivalents at beginning of period 298,718 335,234 Cash and cash equivalents at end of period $ 202,533 $ 200,608 Supplemental disclosure of noncash investing activities: Sales proceeds receivable from sales type lease included in A/R $ 1,090,000 $ --
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 June 30, 1995, the statements of operations for the three and six months ended June 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to June 30, 1995, and the statements of cash flows for the six months ended June 30, 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. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows: June 30, December 31, 1995 1994 Rail equipment $ 783,870 $ 783,870 Marine containers 1,470,761 1,526,759 Commuter aircraft -- 3,076,382 Trailers 2,037,660 2,075,910 4,292,291 7,462,921 Less accumulated depreciation (3,501,206) (5,944,395) Net equipment $ 791,085 $ 1,518,526 All equipment was either on lease or operating in PLM affiliated short-term rental facilities as of June 30, 1995. With the exception of the commuter aircraft, all equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of December 31, 1994. The carrying value of the off-lease equipment was $595,620 at December 31, 1994. During the six months ended June 30, 1995, the Partnership sold or disposed of one trailer and five marine containers with an aggregate net book value of $21,367 for proceeds of $32,157. Additionally, the Partnership entered into a sales-type lease related to a commuter aircraft with a carrying value of $505,450 for a sales price equal to the present value of the future lease payments ($1,090,000) less a $50,000 reserve for future costs of sale. Gross lease payments of $234,000 will be received over a one year period, commencing in June 1995, with an additional balloon payment of $919,012 due at the end of the lease term. During the six months ended June 30, 1994, the Partnership sold nine trailers with a book value of $64,283 for proceeds of $59,600. 3. Investment in Sales-type Lease On May 30, 1995, the Partnership entered into a sales-type lease for the purpose of selling a commuter aircraft. The lease is structured with a one year term commencing June 1995. The lessee will make monthly payments of $19,500. Gross lease payments of $234,000 will be received over a one year period, commencing in June 1995, with an additional balloon payment of $919,012 due at the end of the lease term. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
June 30, December 31, 1995 1994 Equipment held for operating leases, at cost $ 4,714,054 $ 5,309,856 Less accumulated depreciation (3,822,801) (4,180,140) Net equipment 891,253 1,129,716 Cash and cash equivalents 443,768 492,060 Accounts receivable, net of allowance for doubtful accounts of $36,020 in 1995 and $17,600 in 1994 36,306 66,451 Prepaid insurance 1,178 2,960 Total assets $ 1,372,505 $ 1,691,187 LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 3,338 $ 6,063 Accounts payable and other liabilities 2,675 11,411 Prepaid deposits 17,485 16,384 Total liabilities 23,498 33,858 Partners' capital (deficit): Limited Partners (17,460 units) 1,412,383 1,717,622 General Partner (63,376) (60,293) Total partners' capital 1,349,007 1,657,329 Total liabilities and partners' capital $ 1,372,505 $ 1,691,187
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME
Three Months Ended Six Months Ended June 30, June 30, 1995 1994 1995 1994 Revenues: Lease revenue $ 115,086 $ 226,054 $ 260,644 $ 393,028 Interest and other income 5,081 3,381 11,372 5,970 Gain (loss) on disposition of equipment 55,010 (10,724) 72,554 73,822 Total revenues 175,177 218,711 344,570 472,820 Expenses: Depreciation 66,433 93,229 137,531 200,943 Management fees to affiliate 10,912 10,913 21,825 25,930 Repairs and maintenance 9,851 36,539 26,857 53,273 General and administrative expenses to affiliates 23,563 20,940 52,856 38,252 Other general and administrative expenses 1,956 28,665 44,398 39,464 Total expenses 112,715 190,286 283,467 357,862 Net income $ 62,462 $ 28,425 $ 61,103 $ 114,958 Partners' share of net income Limited Partners - 99% $ 61,837 $ 28,141 $ 60,492 $ 113,808 General Partner - 1% 625 284 611 1,150 Total $ 62,462 $ 28,425 $ 61,103 $ 114,958 Net income per Limited Partnership Unit - 17,460 units $ 3.54 $ 1.61 $ 3.46 $ 6.52 Cash distributions $ 133,900 $ 238,869 $ 369,425 $ 431,744 Cash distributions per Limited Partnership Unit $ 7.59 $ 13.54 $ 20.95 $ 24.48
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to June 30, 1995
Limited General Partners Partners 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 income 60,492 611 61,103 Cash distributions (365,731) (3,694) (369,425) Partners' capital (deficit) at June 30, 1995 $ 1,412,383 $ (63,376) $ 1,349,007
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1995 1994 Operating activities: Net income $ 61,103 $ 114,958 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (72,554) (73,822) Depreciation 137,531 200,943 Changes in operating assets and liabilities: Accounts receivable, net 30,145 (7,507) Prepaid insurance 1,782 3,381 Due to affiliates (2,725) 1,463 Accounts payable (8,736) (6,888) Prepaid deposits 1,101 2,265 Net cash provided by operating activities 147,647 234,793 Investing activities: Proceeds from disposition of equipment 175,606 161,750 Payments for purchase of capital improvements (2,120) -- Net cash provided by investing activities 173,486 161,750 Cash flows used in financing activities: Cash distributions paid to partners (369,425) (431,744) Cash and cash equivalents: Net decrease in cash and cash equivalents (48,292) (35,201) Cash and cash equivalents at beginning of period 492,060 455,659 Cash and cash equivalents at end of period $ 443,768 $ 420,458
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 June 30, 1995, the statements of income for the three and six months ended June 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to June 30, 1995, and the statements of cash flows for the six months ended June 30, 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. Equipment Equipment held for operating leases is stated at cost. The components of equipment at June 30, 1995, and December 31, 1994, are as follows: June 30, December 31, 1995 1994 Rail equipment $ 867,300 $ 867,300 Marine containers 418,653 483,606 Aircraft 1,492,368 1,492,368 Trailers and tractors 1,935,733 2,466,582 4,714,054 5,309,856 Less accumulated depreciation (3,822,801) (4,180,140) Net equipment $ 891,253 $ 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 June 30, 1995. With the exception of 19 trailers, all equipment was on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1994. The carrying value of the off-lease equipment was $86,242 and $152,349 at June 30, 1995 and December 31, 1994, respectively. During the six months ended June 30, 1995, the Partnership sold or disposed of 14 trailers and three marine containers with an aggregate net book value of $103,052 for proceeds of $175,606. During the six months ended June 30, 1994, the Partnership sold or disposed of eight tractors, five trailers and one marine container with an aggregate net book value of $87,928 for proceeds of $161,750. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
June 30, December 31, 1995 1994 Equipment held for operating leases, at cost $ 4,983,352 $ 5,082,353 Less accumulated depreciation (4,037,037) (3,980,922) 946,315 1,101,431 Equipment held for sale -- 273,785 Net equipment 946,315 1,375,216 Cash and cash equivalents 295,045 312,230 Restricted cash 6,600 6,600 Accounts receivable, net of allowance for doubtful accounts of $30,368 in 1995 and $31,642 in 1994 82,788 106,868 Due from affiliates 4,727 20,035 Prepaid insurance and other assets 23,901 28,583 Total assets $ 1,359,376 $ 1,849,532 LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accounts payable $ 4,633 $ 8,178 Prepaid deposits and reserves 22,526 48,612 Total liabilities 27,159 56,790 Partners' capital (deficit): Limited Partners (16,914 units) 1,393,356 1,849,276 General Partner (61,139) (56,534) Total partners' capital 1,332,217 1,792,742 Total liabilities and partners' capital $ 1,359,376 $ 1,849,532
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME
Three Months Ended Six Months Ended June 30, June 30, 1995 1994 1995 1994 Revenues: Lease revenue $ 171,549 $ 249,014 $ 362,059 $ 468,795 Interest and other income 7,435 1,899 13,976 3,127 Gain (loss) on disposition of equipment (1,628) 505 234,444 486 Total revenues 177,356 251,418 610,479 472,408 Expenses: Depreciation 68,474 81,268 143,947 163,099 Management fees to affiliate 10,568 10,568 24,217 29,393 Repairs and maintenance 38,325 33,250 87,283 58,140 General and administrative expenses to affiliates 43,110 48,005 91,393 96,228 Other general and administrative expenses 6,200 34,693 14,742 50,309 Total expenses 166,677 207,784 361,582 397,169 Net income $ 10,679 $ 43,634 $ 248,897 $ 75,239 Partners' share of net income: Limited Partners - 99% $ 10,572 $ 43,198 $ 246,408 $ 74,487 General Partner - 1% 107 436 2,489 752 Total $ 10,679 $ 43,634 $ 248,897 $ 75,239 Net income per Limited Partnership Unit (16,914 units) $ 0.62 $ 2.55 $ 14.57 $ 4.40 Cash distributions $ 554,399 $ 94,521 $ 709,422 $ 189,041 Cash distributions per Limited Partnership Unit $ 32.45 $ 5.53 $ 41.52 $ 11.06
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to June 30, 1995
. Limited General Partners Partners 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 246,408 2,489 248,897 Cash distributions (702,328) (7,094) (709,422) Partners' capital (deficit) at June 30, 1995 $ 1,393,356 $ (61,139) $ 1,332,217
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1995 1994 Operating activities: Net income $ 248,897 $ 75,239 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (234,444) (486) Depreciation 143,947 163,099 Change in operating assets and liabilities Restricted cash -- (12,556) Accounts receivable, net 24,080 25,451 Due from affiliates 15,308 (12,242) Prepaid deposits and reserves (26,086) 19,844 Prepaid expenses and other assets 2,254 4,024 Accounts payable and other liabilities (3,545) (13,588) Net cash provided by operating activities 170,411 248,785 Investing activities: Proceeds from disposition of equipment 520,760 31,000 Payments for purchase of capital improvements (1,362) (3,925) Payments received on finance leases 2,428 2,199 Net cash provided by investing activities 521,826 29,274 Cash flows used in financing activities: Cash distributions paid to partners (709,422) (189,041) Cash and cash equivalents: Net (decrease) increase in cash and cash equivalents (17,185) 89,018 Cash and cash equivalents at beginning of period 312,230 131,540 Cash and cash equivalents at end of period $ 295,045 $ 220,558
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 June 30, 1995, the statements of income for the three and six months ended June 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to June 30, 1995, and the statements of cash flows for the six months ended June 30, 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. 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: June 30, December 31, 1995 1994 Rail equipment $ 178,501 $ 178,501 Marine containers 160,473 160,473 Aircraft 913,188 913,188 Trailers and tractors 3,731,190 3,830,191 4,983,352 5,082,353 Less accumulated depreciation (4,037,037) (3,980,922) 946,315 1,101,431 Equipment held for sale -- 273,785 Net equipment $ 946,315 $ 1,375,216 All of the equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of June 30, 1995. With the exception of three railcars and three trailers, all of the equipment was either on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1994. The carrying value of equipment off-lease was $189,876 at December 31, 1994. During the six months ended June 30, 1995, the Partnership sold three trailers and five twin stack railcars of which three railcars were off-lease at the end of 1994, with an aggregate net book value of $286,316 for proceeds of $520,760. During the six months ended June 30, 1994, the Partnership sold or disposed of two trailers and one marine container with an aggregate net book value of $30,514 for proceeds of $31,000. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
June 30, December 31, 1995 1994 Equipment held for operating leases, at cost $ 1,733,051 $ 3,041,954 Less accumulated depreciation (1,371,024) (2,332,144) Net equipment 362,027 709,810 Cash and cash equivalents 388,717 524,782 Accounts receivable, net of allowance for doubtful accounts of $42,681 in 1995 and $6,481 in 1994 46,004 116,088 Due from affiliates 7,639 1,744 Prepaid insurance and other assets 26,668 37,668 Total assets $ 831,055 $ 1,390,092 LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accounts payable and other liabilities $ 133 $ 5,060 Partners' capital (deficit): Limited Partners (9,529 units) 864,440 1,413,009 General Partner (33,518) (27,977) Total partners' capital 830,922 1,385,032 Total liabilities and partners' capital $ 831,055 $ 1,390,092
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME
Three Months Ended Six Months Ended June 30, June 30, 1995 1994 1995 1994 Revenues: Lease revenue $ 75,733 $ 140,046 $ 155,271 $ 268,273 Interest and other income 6,790 5,016 15,441 9,148 Gain on disposition of equipment 36,886 -- 52,339 4,281 Total revenues 119,409 145,062 223,051 281,702 Expenses: Depreciation 25,507 43,409 61,460 86,928 Management fees to affiliate 5,956 6,246 12,339 20,882 Repairs and maintenance 10,540 7,344 32,419 13,903 General and administrative expenses to affiliates 18,741 22,156 41,352 41,041 Other general and administrative expenses 6,250 19,447 28,914 24,610 Bad debt expense (764) 4,906 36,306 11,951 Total expenses 66,230 103,508 212,790 199,315 Net income $ 53,179 $ 41,554 $ 10,261 $ 82,387 Partners' share of net income: Limited Partners - 99% $ 52,647 $ 41,139 $ 10,158 $ 81,564 General Partner - 1% 532 415 103 823 Total $ 53,179 $ 41,554 $ 10,261 $ 82,387 Net income per Limited Partnership Unit (9,529 units) $ 5.52 $ 4.32 $ 1.07 $ 8.56 Cash distributions $ 280,753 $ 83,618 $ 564,371 $ 231,417 Cash distributions per Limited Partnership Unit $ 29.17 $ 8.69 $ 58.63 $ 24.04
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to June 30, 1995
Limited General Partners Partners 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 income 10,158 103 10,261 Cash distributions (558,727) (5,644) (564,371) Partners' capital (deficit) at June 30, 1995 $ 864,440 $ (33,518) $ 830,922
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1995 1994 Operating activities: Net income $ 10,261 $ 82,387 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (52,339) (4,281) Depreciation 61,460 86,928 Changes in operating assets and liabilities Accounts receivable, net 70,084 35,292 Due from affiliate (5,895) (18,690) Prepaid insurance and other assets 1,287 1,386 Accounts payable and other liabilities (4,927) 7,287 Net cash provided by operating activities 79,931 190,309 Investing activities: Proceeds from disposition of equipment 338,662 6,584 Payments received on finance leases 9,713 8,791 Net cash provided by investing activities 348,375 15,375 Cash flows used in financing activities: Cash distributions paid to partners (564,371) (231,417) Cash and cash equivalents: Net decrease in cash and cash equivalents (136,065) (25,733) Cash and cash equivalents at beginning of period 524,782 528,066 Cash and cash equivalents at end of period $ 388,717 $ 502,333
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 June 30, 1995, and the statements of income for the three and six months ended June 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to June 30, 1995, and the statements of cash flows for the six months ended June 30, 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. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows: June 30, December 31, 1995 1994 Marine containers $ 365,716 $ 417,961 Trailers 1,367,335 2,623,993 1,733,051 3,041,954 Less accumulated depreciation (1,371,024) (2,332,144) Net equipment $ 362,027 $ 709,810 All equipment owned by the Partnership was either on lease or operating in PLM-affiliated short-term rental facilities as of June 30, 1995. With the exception of 24 trailers, all equipment was either on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1994. The carrying value of the off-lease equipment was $224,848 at December 31, 1994. During the six months ended June 30, 1995, the Partnership sold or disposed of 30 trailers and 27 marine containers with an aggregate net book value of $286,323 for proceeds of $338,662. During the six months ended June 30, 1994, the Partnership disposed of four marine containers with a net book value of $2,303 for proceeds of $6,584. 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 six months ended June 30, 1995, one trailer and five marine containers owned by TEP IXA were sold or disposed of for a total of $32,157. Additionally, the Partnership entered into a sales-type lease related to a commuter aircraft. The Partnership will receive future lease payments totaling $234,000 with an additional balloon payment of $919,012 at the end of the lease term; 14 trailers and three marine containers owned by TEP IXB were sold for a total of $175,606; five twin stack railcars and three trailers owned by TEP IXC were sold for $520,760; and 30 trailers and 27 marine container owned by TEP IXD were sold or disposed of for $338,662. Comparison of the Partnership's Operating Results for the Three Months Ended June 30, 1995 and 1994 TEP IXA (A) Revenues Total revenues of $658,947 for the quarter ended June 30, 1995, increased from $155,051 for the same period in 1994, due primarily to a gain recorded on the sale of assets during the second quarter of 1995, compared to no sales during the same period in 1994. (1) Lease revenue decreased to $120,131 in the second quarter 1995, from $153,361 in the same period of 1994. The following table lists lease revenues earned by equipment type: For the three months ended June 30, 1995 1994 Trailers $ 71,754 $ 101,020 Rail equipment 25,950 25,950 Marine containers 22,427 26,391 $ 120,131 $ 153,361 This increase was due primarily to the following: (a) Trailer revenue decreased $29,266 due to the sale of 12 trailers, one yardster and one forklift in 1994, and one trailer in 1995; (b) Marine container revenue decreased $3,964 due to the disposal of six marine containers in 1994, and five in 1995, and a decline in utilization of the reefer fleet from 1994 levels. (2) For the quarter ended June 30, 1995, the Partnership realized a gain of $535,795 on the sale or disposition of three marine containers and one aircraft which was structured as a sales-type lease. The Partnership will receive future lease payments totaling $234,000 with an additional balloon payment of $919,012 at the end of the one-year lease term related to the aircraft. (B) Expenses Total expenses of $196,000 for the quarter ended June 30, 1995, decreased from $231,055 for the same period in 1994. The decrease in 1995 expenses was attributable to decreases in all general and administrative expenses, depreciation expense, and repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $24,308 in 1995, from $30,499 in 1994, due to a decrease in repairs and maintenance for trailers in the short-term rental facilities. In the second quarter of 1994, repairs were made on former term lease trailers prior to transitioning into the short-term rental facilities. The decrease in trailer repair costs was offset, in part, by an increase in repairs and maintenance due to the refurbishment on the Partnership's aircraft prior to being sold. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $171,692 in the second quarter 1995, from $200,556 in the same period in 1994. This change resulted primarily from: (a) a decrease of $18,959 in general and administrative expenses from 1994 levels due to lower administrative costs associated with the Partnership; (b) a decrease in depreciation expense of $9,906 from 1994 levels reflecting asset sales or dispositions during 1995 and 1994. (C) Net Income (Loss) The Partnership's net income increased to $462,947 in the second quarter 1995, from a net loss of $76,004 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 second quarter 1995, is not necessarily indicative of future periods. In the second quarter 1995, the Partnership distributed $73,719 to the Limited Partners, or approximately $3.04 per unit. TEP IXB (A) Revenues Total revenues of $175,177 for the quarter ended June 30, 1995, decreased from $218,711 for the same period in 1994 due primarily to lower lease revenues offset by a gain from the sale of equipment in the second quarter of 1995, compared to a loss in the same period in 1994. (1) Lease revenue decreased to $115,086 in the second quarter 1995, from $226,054 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the three months ended June 30, 1995 1994 Aircraft $ 48,593 $ 48,593 Trailers and tractors 38,324 111,905 Rail equipment 21,870 57,051 Marine containers 6,299 8,505 $ 115,086 $ 226,054 The decline was due primarily to the following: (a) Trailer and tractor revenue decreased $73,581 due to the sale of 13 tractors and six trailers in 1994 and 14 trailers in 1995, offset by 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; (b) Railcar revenue decreased $35,181 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 1995. (2) For the quarter ended June 30, 1995, the Partnership realized a gain of $55,010 on the sale or disposition of 13 trailers and two marine containers, compared to the same period in 1994, where the Partnership realized a loss of $10,724 on the sale or disposal of five trailers and one marine container. (B) Expenses Total expenses of $112,715 for the quarter ended June 30, 1995, decreased from $190,286 for the same period in 1994. The decrease in 1995 expenses was attributable primarily to decreases in repairs and maintenance, all general and administrative expenses, and depreciation. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $9,851 in the second quarter 1995, from $36,539 in the same period in 1994. This decrease was attributable to the sale of six trailers in 1994 and 14 trailers in 1995 and a decrease in shop repairs for the Partnership's railcars. (2) Indirect operating expenses (defined as depreciation expense, management fees, all general and administrative expenses, and bad debt expense) decreased to $102,864 in the second quarter 1995, from $153,747 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $26,796 from 1994 levels reflecting assets sales or dispositions during 1995 and 1994; (b) a decrease of $24,086 in general and administrative expenses from 1994 levels due to lower administrative costs associated with the Partnership. (C) Net Income The Partnership's net income of $62,462 in the second quarter 1995, increased from a net income of $28,425 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 second quarter 1995, is not necessarily indicative of future periods. In the second quarter 1995, the Partnership distributed $132,561 to the Limited Partners, or approximately $7.59 per unit. TEP IXC (A) Revenues Total revenues for the quarter ended June 30, 1995, decreased to $177,356 from $251,418 for the same period in 1994, due primarily to lower lease revenues. (1) Lease revenue decreased to $171,549 in the second quarter 1995, from $249,014 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the three months ended June 30, 1995 1994 Trailers and tractors $ 143,501 $ 197,556 Aircraft 17,100 21,863 Rail equipment 9,175 27,875 Marine containers 1,773 1,720 $ 171,549 $ 249,014 The decline was due primarily to the following: (a) Trailer revenue decreased $54,055 in 1995, as compared to 1994 levels due to lower utilization in the short-term rental facilities in 1995 compared to 1994 levels, and the sale of three trailers in 1995; (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 $18,700 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 June 30, 1995, the Partnership realized a loss of $1,628 on the sale of three trailers, compared to the same period in 1994, where the Partnership realized a gain of $505 on the sale or disposal of three trailers and three marine containers. (3) Interest and other income increased $5,536 due to an increase in cash available for short-term investment. (B) Expenses Total expenses of $166,677 for the quarter ended June 30, 1995, decreased from $207,784 for the same period in 1994. The decrease in 1995 expenses was attributable to decreases in depreciation and all general and administrative expenses, offset by increases in repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) increased to $38,325 in the second quarter 1995, from $33,250 in the same period in 1994. This increase was attributable to higher maintenance expense incurred on the increased number of 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 $128,352 in the second quarter 1995, from $174,534 in the same period in 1994. This change resulted primarily from: (a) a decrease in general and administrative expenses of $33,388 due to lower administrative costs associated with the Partnership; (b) a decrease in depreciation expense of $12,794 from 1994 levels reflecting asset sales during 1995. (C) Net Income The Partnership's net income decreased to $10,679 in the second quarter 1995, from $43,634 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 second quarter 1995, is not necessarily indicative of future periods. In the second quarter 1995, the Partnership distributed $548,855 to the Limited Partners, or approximately $32.45 per unit. TEP IXD (A) Revenues Total revenues of $119,409 for the quarter ended June 30, 1995 decreased from $145,062 for the same period in 1994, due primarily to lower lease revenues, offset by a gain on sale of equipment for the second quarter of 1995, compared to no sales in the same period in 1994. (1) Lease revenues decreased to $75,733 in the second quarter 1995, from $140,046 in the same period in 1994. The following table lists lease revenue earned by equipment type: For the three months ended June 30, 1995 1994 Trailers $ 57,241 $ 121,668 Marine containers 18,492 18,378 ---------- ---------- $ 75,733 $ 140,046 Lease revenue decreased $64,427 due primarily to the sale of 30 trailers during the first and second quarters of 1995, and lower utilization in short-term rental facilities operated by an affiliate of the General Partner. (2) For the quarter ended June 30, 1995, the Partnership realized a gain of $36,886 on the sale or disposal of six trailers and 19 marine containers. There were no sales or disposals for the same period in 1994. (B) Expenses Total expenses of $66,230 for the quarter ended June 30, 1995, decreased from $103,508 for the same period in 1994. The decrease in 1995 expenses was attributable primarily to decreases in depreciation, all general and administrative expenses, and bad debt expense partially offset by an increase in repair and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) increased to $10,540 in the second quarter 1995, from $7,344 in the same period in 1994. This change resulted primarily from the refurbishment of six trailers prior to being sold. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and all general and administrative expenses) decreased to $55,690 in the second quarter 1995, from $96,164 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $17,902 from 1994 levels, reflecting asset sales or dispositions during 1995; (b) a decrease of $16,612 in general and administrative expenses from 1994 levels due to lower administrative costs associated with the short-term rental facilities; (c) a decrease of $5,670 in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees. (C) Net Income The Partnership's net income of $53,179 in the second quarter 1995, increased from a net income of $41,554 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 second quarter 1995, is not necessarily indicative of future periods. In the second quarter 1995, the Partnership distributed $277,945 to the Limited Partners, or approximately $29.17 per unit. Comparison of the Partnership's Operating Results for the Six Months Ended June 30, 1995 and 1994 TEP IXA (A) Revenues Total revenues of $792,659 for the six months ended June 30, 1995, increased from $267,062 for the same period in 1994, due primarily to a gain recorded on the sale of assets during 1995 compared to a loss on assets sales in 1994. (1) Lease revenue decreased to $240,224 in the six months ended June 30, 1995, from $268,309 in the same period of 1994. The following table lists lease revenues earned by equipment type: For the six months ended June 30, 1995 1994 Trailers $ 142,609 $ 166,775 Rail equipment 51,900 44,429 Marine containers 45,715 57,105 ---------- ---------- $ 240,224 $ 268,309 The decline was due primarily to the following: (a) Trailer revenue decreased $24,166 due to the sale of 12 trailers, one yardster and one forklift in 1994 and one trailer in 1995; (b) Marine container revenue decreased $11,390 due to the disposal of six marine containers in 1994 and five in 1995, and a decline in utilization of the reefer fleet from 1994 levels; (c) Rail revenue increased $7,471 from 1994 levels due to a rental credit which was given to a current lessee in the first quarter of 1994. (2) For the six months ended June 30, 1995, the Partnership realized a gain of $545,340 on the sale or disposition of one trailer, five marine containers, and one commuter aircraft, compared to the same period in 1994, where the Partnership realized a loss of $4,683 on the sale of nine trailers. The sale of the commuter aircraft in the second quarter of 1995 was structured as a sales-type lease. The Partnership will receive future lease payments totaling $234,000 with an additional balloon payment of $919,012 at the end of the one-year lease term. (B) Expenses Total expenses of $437,211 for the six months ended June 30, 1995, increased slightly from $433,710 for the same period in 1994. The increase in 1995 expenses was attributable to increases in repairs and maintenance, offset by decreases in depreciation expense and all general and administrative expenses. (1) Direct operating expenses (defined as repairs and maintenance) increased to $105,819 in 1995, from $66,784 in 1994. This increase was due primarily to the refurbishment required on the Partnership's aircraft which 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 $331,392 in the six months ended June 30, 1995, from $366,926 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $20,163 from 1994 levels reflecting assets sales or dispositions during 1995 and 1994; (b) a decrease of $15,117 in general and administrative expenses from 1994 levels due to lower administrative costs associated with the Partnership. (C) Net Income (Loss) The Partnership's net income increased to $355,448 in the six months ended June 30, 1995, from a net loss of $166,648 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 six months ended June 30, 1995, is not necessarily indicative of future periods. In the six months ended June 30, 1995, the Partnership distributed $147,451 to the Limited Partners, or approximately $6.07 per unit. TEP IXB (A) Revenues Total revenues of $344,570 for the six months ended June 30, 1995, decreased from $472,820 for the same period in 1994 due primarily to lower lease revenue. (1) Lease revenue decreased to $260,644 in the six months ended June 30, 1995, from $393,028 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the six months ended June 30, 1995 1994 Trailers and tractors $ 110,826 $ 177,963 Aircraft 97,188 97,185 Rail equipment 37,897 99,202 Marine containers 14,733 18,678 ---------- ---------- $ 260,644 $ 393,028 The decline was due primarily to the following: (a) Railcar revenue decreased $61,305 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 1995; (b) Trailer and tractor revenue decreased $67,137 due to the sale of 13 tractors and six trailers in 1994 and 14 trailers in 1995, offset by 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. (2) For the six months ended June 30, 1995, the Partnership realized a gain of $72,554 on the sale or disposition of 14 trailers and three marine containers, compared to the same period in 1994, where the Partnership realized a gain of $73,822 on the sale or disposal of eight tractors, five trailers and one marine container. (B) Expenses Total expenses of $283,467 for the six months ended June 30, 1995, decreased from $357,862 for the same period in 1994. The decrease in 1995 expenses was attributable primarily to decreases in depreciation, repairs and maintenance, and management fees, offset by increases in all general and administrative expenses. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $26,857 in the six months ended June 30, 1995, from $53,273 in the same period in 1994. This decrease was attributable to a decrease in repairs and maintenance due to the sale of six trailers in 1994 and 14 trailers in 1995, and decreases in shop repairs for the Partnership's railcars. (2) Indirect operating expenses (defined as depreciation expense, management fees, all general and administrative expenses, and bad debt expense) decreased to $256,610 in the six months ended June 30, 1995, from $304,589 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $63,412 from 1994 levels reflecting assets sales or dispositions during 1995 and 1994; (b) a decrease in management fees to affiliate of $4,105 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) an increase of $19,538 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. (C) Net Income The Partnership's net income of $61,103 in the six months ended June 30, 1995, decreased from a net income of $114,958 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 six months ended June 30, 1995, is not necessarily indicative of future periods. In the six months ended June 30, 1995, the Partnership distributed $365,731 to the Limited Partners, or approximately $20.95 per unit. TEP IXC (A) Revenues Total revenues for the six months ended June 30, 1995, increased to $610,479 from $472,408 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. (1) Lease revenue decreased to $362,059 in the six months ended June 30, 1995, from $468,795 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the six months ended June 30, 1995 1994 Trailers and tractors $ 296,829 $ 371,211 Aircraft 34,200 43,726 Rail equipment 26,110 49,058 Marine containers 4,920 4,800 $ 362,059 $ 468,795 The decline was due primarily to the following: (a) Trailer revenue decreased $74,382 in 1995 as compared to 1994 levels due to lower utilization in the short-term rental facilities, primarily refrigerated trailers, in 1995 compared to 1994 levels, and the sale of three trailers in 1995; (b) Aircraft revenue decreased $9,526 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 $22,948 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 six months ended June 30, 1995, the Partnership realized a gain of $234,444 on the sale of three trailers and five twin stack railcars, compared to the same period in 1994, where the Partnership realized a gain of $486 on the sale or disposal of two trailers and one marine container. (3) Interest and other income increased $10,849 due to an increase in cash available for short-term investment. (B) Expenses Total expenses of $361,582 for the six months ended June 30, 1995, decreased from $397,169 for the same period in 1994. The decrease in 1995 expenses was attributable to decreases in all general and administrative expenses, depreciation and management fees, offset by an increase in repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) increased to $87,283 in the six months ended June 30, 1995, from $58,140 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 $274,299 in the six months ended June 30, 1995, from $339,029 in the same period in 1994. This change resulted primarily from: (a) a decrease in general and administrative expenses of $40,402 due to lower administrative costs associated with the Partnership; (b) a decrease in depreciation expense of $19,152 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 $248,897 in the six months ended June 30, 1995, from $75,239 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 six months ended June 30, 1995, is not necessarily indicative of future periods. In the six months ended June 30, 1995, the Partnership distributed $702,328 to the Limited Partners, or approximately $41.52 per unit. TEP IXD (A) Revenues Total revenues of $223,051 for the six months ended June 30, 1995 decreased from $281,702 for the same period in 1994 due primarily to lower lease revenues, offset by a larger gain on sale of equipment in 1995 compared to 1994. (1) Lease revenues decreased to $155,271 in the six months ended June 30, 1995, from $268,273 in the same period in 1994. The following table lists lease revenue earned by equipment type: For the six months ended June 30, 1995 1994 Trailers $ 114,451 $ 232,435 Marine containers 40,820 35,838 ---------- ---------- $ 155,271 $ 268,273 The decrease was due to the following: (a) Trailer revenue decreased $117,984 due primarily to the sale of 30 trailers during the first and second quarters of 1995, and lower utilization in short-term rental facilities operated by an affiliate of the General Partner; (b) Marine container revenue increased $4,982 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 27 marine containers in 1995 and 24 in 1994. (2) For the six months ended June 30, 1995, the Partnership realized a gain of $52,339 on the sale or disposal of 30 trailers and 27 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 $6,293 due to an increase in cash available for short-term investment. (B) Expenses Total expenses of $212,790 for the six months ended June 30, 1995, increased from $199,315 for the same period in 1994. The increase in 1995 expenses was attributable primarily to increases in bad debt expense, repair and maintenance and all general and administrative expenses, partially offset by decreases in depreciation and management fees. (1) Direct operating expenses (defined as repairs and maintenance) increased to $32,419 in the six months ended June 30, 1995, from $13,903 in the same period in 1994. This change resulted primarily from the refurbishment of 30 trailers prior to being sold. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and all general and administrative expenses) decreased to $180,371 in the six months ended June 30, 1995, from $185,412 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $25,468 from 1994 levels, reflecting asset sales or dispositions during 1995; (b) a decrease in management fees to affiliate of $8,543 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; (c) an increase of $24,355 in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (d) an increase of $4,615 in general and administrative expenses from 1994 levels due to slightly higher administrative costs associated with the Partnership. (C) Net Income The Partnership's net income of $10,261 in the six months ended June 30, 1995, decreased from a net income of $82,387 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 six months ended June 30, 1995, is not necessarily indicative of future periods. In the six months ended June 30, 1995, the Partnership distributed $558,727 to the Limited Partners, or approximately $58.63 per unit. Trends Inflation and changing prices did not materially impact the Partnerships' revenues or expenses during the reported periods. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits None. (b) Reports on Form 8-K None. 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. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND By: PLM Financial Services, Inc. General Partner Date: August 10, 1995 By: /s/ David J. Davis ------------------- David J. Davis Vice President and Corporate Controller EX-27 2
5 6-MOS DEC-31-1995 JUN-30-1995 443,768 0 36,306 36,020 0 0 4,714,054 3,822,801 1,372,505 0 0 0 0 0 1,349,007 1,372,505 0 344,570 0 283,467 0 0 0 61,103 0 61,103 0 0 0 61,103 0 0