-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LqdlyDWaIU+3BU8/YoWAaQJyqxkL3y7I5RSO5w8xNuyOWSJ6ZivPZMjJ/KNZ4xkr qIOW+yq2Jx+rrJRdlwpxsQ== 0000778793-96-000004.txt : 19961115 0000778793-96-000004.hdr.sgml : 19961115 ACCESSION NUMBER: 0000778793-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND CENTRAL INDEX KEY: 0000778793 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 942992020 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15439 FILM NUMBER: 96661700 BUSINESS ADDRESS: STREET 1: ONE MARKET PLAZA STEUART ST TOWER STREET 2: STE 900 CITY: SAN FRANCISCO STATE: CA ZIP: 94105-1301 BUSINESS PHONE: 4159741399 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------- FORM 10-Q [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal quarter ended September 30, 1996. [ ] 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 0-15437 ----------------------- PLM Transportation Equipment Partners IXC 1986 Income Fund (Exact name of registrant as specified in its charter) California 94-2992018 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Market, Steuart Street Tower Suite 800, San Francisco, CA 94105-1301 (Address of principal (Zip code) executive offices) Registrant's telephone number, including area code (415) 974-1399 ----------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ______ PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
September 30, December 31, 1996 1995 ------------------------------------------ Equipment held for operating leases, at cost $ 3,513,098 $ 4,242,401 Less accumulated depreciation (3,121,008 ) (3,567,969 ) ------------------------------------------ Net equipment 392,090 674,432 Cash and cash equivalents 540,782 251,709 Accounts receivable, net of allowance for doubtful accounts of $57,164 in 1996 and $57,022 in 1995 88,444 107,933 Net investment in sales-type lease -- 1,003,564 Due from affiliates -- 2,941 Prepaid insurance 136 3,544 ------------------------------------------ Total assets $ 1,021,452 $ 2,044,123 ========================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 5,059 $ -- Accounts payable 8,746 23,272 Prepaid deposits 2,956 20,028 ------------------------------------------ Total liabilities 16,761 43,300 Partners' capital (deficit): Limited Partners (24,285 units) 1,101,599 2,087,769 General Partner (96,908 ) (86,946 ) ------------------------------------------ Total partners' capital 1,004,691 2,000,823 ------------------------------------------ Total liabilities and partners' capital $ 1,021,452 $ 2,044,123 ==========================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME
For the three months For the nine months ended September 30, ended September 30, 1996 1995 1996 1995 ----------------------------- ------------------------------- Revenues: Lease revenue $ 97,143 $ 151,828 $ 317,352 $ 392,052 Interest and other income 2,878 16,264 15,723 23,359 Gain on disposition of equipment 292,451 9,857 337,432 555,197 ----------------------------- ------------------------------- Total revenues 392,472 177,949 670,507 970,608 Expenses: Depreciation 46,864 55,518 152,246 257,018 Management fees to affiliate 15,178 15,178 46,382 45,534 Repairs and maintenance 19,772 22,951 45,671 128,770 General and administrative expenses to affiliates 17,219 28,800 62,714 89,524 Other general and administrative expenses 6,393 22,753 49,356 61,565 ----------------------------- ------------------------------- ----------------------------- Total expenses 105,426 145,200 356,369 582,411 ----------------------------- ------------------------------- Net income $ 287,046 $ 32,749 $ 314,138 $ 388,197 ============================= =============================== Partners' share of net income Limited Partners - 99% $ 284,176 $ 32,422 $ 310,997 $ 384,315 General Partner - 1% 2,870 327 3,141 3,882 ----------------------------- ------------------------------- Total $ 287,046 $ 32,749 $ 314,138 $ 388,197 ============================= =============================== Net income per Limited Partnership Unit - 24,285 units $ 11.70 $ 1.34 $ 12.81 $ 15.83 ============================= =============================== Cash distributions $ 67,589 $ 74,464 $ 210,270 $ 223,404 ============================= =============================== Cash distributions per Limited Partnership Unit $ 2.76 $ 3.04 $ 8.57 $ 9.11 ============================= =============================== Special cash distributions $ -- $ -- $ 1,100,000 $ -- ============================= =============================== Special cash distributions per Limited Partnership Unit $ -- $ -- $ 44.84 $ -- ============================= =============================== Total cash distributions per Limited Partnership Unit $ 2.76 $ 3.04 $ 53.41 $ 9.11 ============================= ===============================
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, 1994 to September 30, 1996
Limited General Partners Partners Total ---------------------------------------------------- Partners' capital (deficit) at December 31, 1994 $ 1,913,772 $ (88,703 ) $ 1,825,069 Net income 468,887 4,736 473,623 Cash distributions (294,890 ) (2,979 ) (297,869 ) ------------------------------------------------------ Partners' capital (deficit) at December 31, 1995 2,087,769 (86,946 ) 2,000,823 Net income 310,997 3,141 314,138 Quarterly cash distributions (208,167 ) (2,103 ) (210,270 ) Special distributions (1,089,000 ) (11,000 ) (1,100,000 ) ------------------------------------------------------ Partners' capital (deficit) at September 30, 1996 $ 1,101,599 $ (96,908 ) $ 1,004,691 ======================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996 1995 ---------------------------------- Operating activities: Net income $ 314,138 $ 388,197 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (337,432 ) (555,197 ) Depreciation 152,246 257,018 Changes in operating assets and liabilities Accounts receivable, net 19,489 (4,306 ) Due to/from affiliates 8,000 (5,673 ) Prepaid insurance 3,408 3,178 Accounts payable (14,526 ) (28,068 ) Prepaid deposits (17,072 ) (897 ) ---------------------------------- Cash provided by operating activities 128,251 54,252 ---------------------------------- Investing activities: Proceeds from disposition of equipment 467,528 90,053 Payments received on sales-type lease 1,003,564 -- Payments for purchase of capital improvements -- (876 ) ---------------------------------- Cash provided by investing activities 1,471,092 89,177 ---------------------------------- Cash flows used in financing activities: Cash distributions paid to Limited Partners (1,297,167 ) (221,170 ) Cash distributions paid to General Partner (13,103 ) (2,234 ) ---------------------------------- Cash used in financing activities (1,310,270 ) (223,404 ) ---------------------------------- Cash and cash equivalents: Net increase (decrease) in cash and cash equivalents 289,073 (79,975 ) Cash and cash equivalents at beginning of period 251,709 298,718 ---------------------------------- Cash and cash equivalents at end of period $ 540,782 $ 218,743 ==================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 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 primarily of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1996, the statements of income for the three and nine months ended September 30, 1996 and 1995, the statements of changes in partners' capital for the period from December 31, 1994 to September 30, 1996, and the statements of cash flows for the nine months ended September 30, 1996 and 1995. 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, 1995, 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:
September 30, December 31, 1996 1995 ------------------------------------ Rail equipment $ -- $ 409,301 Marine containers 1,155,802 1,420,872 Trailers 2,357,296 2,412,228 ------------------------------------ 3,513,098 4,242,401 Less accumulated depreciation (3,121,008 ) (3,567,969 ) ------------------------------------ Net equipment $ 392,090 $ 674,432 ====================================
All equipment was either on lease or operating in PLM affiliated short-term rental facilities except one forklift with a net carrying value of $35,073 as of September 30, 1996. All equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of December 31, 1995. During the nine months ended September 30, 1996, the Partnership sold or disposed of 10 railcars, 16 marine containers and two trailers with an aggregate book value of $130,096 for proceeds of $464,899. In addition, additional proceeds of $2,629 were received for the commuter aircraft which was under a sales-type lease. During the nine months ended September 30, 1995, the Partnership sold or disposed of one trailer and seven marine containers with aggregate net book value of $26,501 for proceeds of $47,148. 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. 3. Liquidation and special distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received, the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 3. Liquidation and special distributions (continued) carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. During the nine months ended September 30, 1996, the General Partner paid special distributions of $44.84 per Limited Partnership Unit which were the result of proceeds from the sale of the commuter aircraft and other equipment. No special distributions was paid during the nine months ended September 30, 1995. The Partnership is not permitted to reinvest proceeds from sales or liquidations of equipment. These proceeds, in excess of operational cash requirements, are periodically paid out to limited partners in the form of special distributions. The sales and liquidations occur because of equipment destructions, the determination by the General Partner that it is the appropriate time to maximize the return on an asset through sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. 4. 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 was structured with a one-year term commencing June 1995. The lessee was to make monthly payments of $19,500. Gross lease payments of $234,000 were to 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 first quarter of 1996, the lessee exercised its option to buy the aircraft for approximately $1.1 million. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
September 30, December 31, 1996 1995 ------------------------------------- Equipment held for operating leases, at cost $ 2,001,362 $ 2,908,067 Less accumulated depreciation (1,777,008 ) (2,408,060 ) ------------------------------------- 224,354 500,007 Equipment held for sale 113,552 -- ------------------------------------- Net equipment 337,906 500,007 Cash and cash equivalents 145,814 351,363 Investment in unconsolidated special purpose entity -- 222,128 Accounts receivable, net of allowance for doubtful accounts of $24,148 in 1996 and $29,460 in 1995 35,153 82,668 Prepaid insurance 97 2,447 ------------------------------------- Total assets $ 518,970 $ 1,158,613 ===================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 3,637 $ 3,637 Accounts payable and other liabilities 7,065 72,569 Prepaid deposits -- 16,248 ------------------------------------- Total liabilities 10,702 92,454 Partners' capital (deficit): Limited Partners (17,460 units) 580,052 1,132,364 General Partner (71,784 ) (66,205 ) -------------- -------------- Total partners' capital 508,268 1,066,159 ------------------------------------- Total liabilities and partners' capital $ 518,970 $ 1,158,613 =====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME
Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 ----------------------------- ----------------------------- Revenues: Lease revenue $ 58,429 $ 132,659 $ 206,030 $ 393,303 Interest and other income 3,536 5,516 11,275 16,888 Gain on disposition of equipment 8,473 27,862 38,239 100,416 ----------------------------- ----------------------------- Total revenues 70,438 166,037 255,544 510,607 Expenses: Depreciation 34,705 61,641 108,831 199,172 Management fees to affiliate 10,913 10,913 32,738 32,738 Repairs and maintenance 13,192 24,313 36,608 51,170 General and administrative expenses to affiliates 10,703 19,573 46,021 72,429 Other general and administrative expenses 3,623 15,965 26,024 60,363 --------------------------------------------------------------- Total expenses 73,136 132,405 250,222 415,872 Equity in net income of unconsolidated special purpose entity 231,147 -- 192,041 -- ----------------------------- ----------------------------- Net income $ 228,449 $ 33,632 $ 197,363 $ 94,735 ============================= ============================= Partners' share of net income Limited Partners - 99% $ 226,165 $ 33,296 $ 195,389 $ 93,788 General Partner - 1% 2,284 336 1,974 947 ----------------------------- ----------------------------- Total $ 228,449 $ 33,632 $ 197,363 $ 94,735 ============================= ============================= Net income per Limited Partnership Unit - 17,460 units $ 12.95 $ 1.91 $ 11.19 $ 5.37 ============================= ============================= Cash distributions $ 101,751 $ 102,999 $ 305,254 $ 372,424 ============================= ============================= Cash distributions per Limited Partnership Unit $ 5.77 $ 5.84 $ 17.31 $ 21.12 ============================= ============================= Special cash distributions $ 450,000 $ 100,000 $ 450,000 $ 200,000 ============================= ============================= Special cash distributions per Limited Partnership Unit $ 25.52 $ 5.67 $ 25.52 $ 11.34 ============================= ============================= Total cash distributions per Limited Partnership Unit $ 31.29 $ 11.51 $ 42.83 $ 32.46 ============================= =============================
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, 1994 to September 30, 1996
Limited General Partners Partners Total ---------------------------------------------------- Partners' capital (deficit) at December 31, 1994 $ 1,717,622 $ (60,293 ) $ 1,657,329 Net income 82,176 830 83,006 Cash distributions (667,434 ) (6,742 ) (674,176 ) ---------------------------------------------------- Partners' capital (deficit) at December 31, 1995 1,132,364 (66,205 ) 1,066,159 Net income 195,389 1,974 197,363 Quarterly cash distributions (302,201 ) (3,053 ) (305,254 ) Special distributions (445,500 ) (4,500 ) (450,000 ) ---------------------------------------------------- Partners' capital (deficit) at September 30, 1996 $ 580,052 $ (71,784 ) $ 508,268 ====================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996 1995 -------------------------------- Operating activities: Net income $ 197,363 $ 94,735 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (38,239 ) (100,416 ) Depreciation 108,831 199,172 Income from unconsolidated special purpose entity in excess of cash distributions (220,372 ) -- Changes in operating assets and liabilities: Accounts receivable, net 47,515 35,713 Prepaid insurance 2,350 2,650 Due to affiliates -- (2,425 ) Accounts payable and other liabilities (65,504 ) (1,598 ) Prepaid deposits (16,248 ) (15,379 ) -------------------------------- Cash provided by operating activities 15,696 212,452 -------------------------------- Investing activities: Proceeds from disposition of equipment 91,509 241,627 Liquidation proceeds from unconsolidated special purpose entity 442,500 -- Payments for purchase of capital improvements -- (4,895 ) -------------------------------- Cash provided by investing activities 534,009 236,732 -------------------------------- Cash flows used in financing activities: Cash distributions paid to Limited Partners (747,701 ) (566,700 ) Cash distributions paid to General Partner (7,553 ) (5,724 ) -------------------------------- Cash used in financing activities (755,254 ) (572,424 ) -------------------------------- Net decrease in cash and cash equivalents (205,549 ) (123,240 ) Cash and cash equivalents at beginning of period 351,363 492,060 -------------------------------- Cash and cash equivalents at end of period $ 145,814 $ 368,820 ================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 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 primarily of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1996, the statements of income for the three and nine months ended September 30, 1996 and 1995, the statements of changes in partners' capital for the period from December 31, 1994 to September 30, 1996, and the statements of cash flows for the nine months ended September 30, 1996 and 1995. 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, 1995, on file at the Securities and Exchange Commission. 2. Equipment Owned 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 estimated net realizable value and is subject to a pending contract for sale. The components of owned equipment are as follows:
September 30, December 31, 1996 1995 ---------------------------------- Rail equipment $ -- $ 499,800 Marine containers 325,115 413,633 Trailers and tractors 1,676,247 1,994,634 ---------------------------------- 2,001,362 2,908,067 Less accumulated depreciation (1,777,008 ) (2,408,060 ) ---------------------------------- 224,354 500,007 Equipment held for sale 113,552 -- ---------------------------------- Net equipment $ 337,906 $ 500,007 ==================================
With the exception of one sidelift with an aggregate net carrying value of $53,072, all equipment was either on lease or operating in PLM affiliated short-term rental facilities as of September 30, 1996. Fourteen railcars with a pending contract for sale and an aggregate net book value of $113,552 were reclassed to equipment held for sale in the third quarter of 1996. With the exception of one trailer and one sidelift with a carrying value of $79,024, all equipment was on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1995. During the nine months ended September 30, 1996, the Partnership sold or disposed of eight trailers and four marine containers with an aggregate net book value of $53,270 for proceeds of $91,509. During the nine months ended September 30, 1995, the Partnership sold or disposed of 20 trailers and four marine containers with an aggregate net book value of $141,211 for proceeds of $241,627. 3. Liquidation and Special Distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received, the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 3. Liquidation and Special Distributions (continued) liquidation phase of the Partnership, the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. During the nine months ended September 30, 1996 and 1995, the General Partner paid special distributions of $25.52 and $11.34, respectively, per Limited Partnership Unit which were the result of proceeds from the liquidation of equipment. The Partnership is not permitted to reinvest proceeds from sales or liquidations of equipment. These proceeds, in excess of operational cash requirements, are periodically paid out to limited partners in the form of special distributions. The sales and liquidations occur because of equipment destructions, the determination by the General Partner that it is the appropriate time to maximize the return on an asset through sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. 4. Investment in Unconsolidated Special Purpose Entity Prior to 1996, the Partnership accounted for operating activities associated with joint ownership of rental equipment as undivided interests, including its proportionate share of each asset with similar wholly-owned assets in its financial statements. Under generally accepted accounting principles, the effects of such activities, if material, should be reported using the equity method of accounting. Therefore, effective January 1, 1996, the Partnership adopted the equity method to account for its investment in such jointly-held assets. The principal differences between the previous accounting method and the equity method relate to the presentation of activities relating to these assets in the statement of operations. Whereas, under equity accounting the Partnership's proportionate share is presented as a single net amount, "equity in net income (loss) of unconsolidated special purpose entities", under the previous method, the Partnership's statement of operations reflected its proportionate share of each individual item of revenue and expense. Accordingly, the effect of adopting the equity method of accounting has no cumulative effect on previously reported partner's capital or on the Partnership's net income (loss) for the period of adoption. Because the effects on previously issued financial statements of applying the equity method of accounting to investments in jointly-owned assets are not considered to be material to such financial statements taken as a whole, previously issued financial statements have not been restated. However, certain items have been reclassified in the previously issued balance sheet to conform to the current period presentation. During the nine months ended September 30, 1996, the General Partner sold the Partnership's 50% interest in a commuter aircraft, included in "Investment in Unconsolidated Special Purpose Entity" for proceeds of $442,500. The Partnership received liquidating distributions from the Unconsolidated Special Purpose Entity during the third quarter of 1996. 5. Subsequent Event On October 24, 1996, the General Partner sold 14 railcars for proceeds of $343,000, which were classified as assets held for sale at September 30, 1996. The net book value of these railcars was $113,552. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
September 30, December 31, 1996 1995 --------------------------------------- Equipment held for operating leases, at cost $ 3,563,112 $ 4,007,465 Less accumulated depreciation (3,139,998 ) (3,354,708 ) --------------------------------------- 423,114 652,727 Equipment held for sale 33,574 -- --------------------------------------- Net equipment 456,688 652,757 Cash and cash equivalents 120,210 248,504 Investment in unconsolidated special purpose entity -- 133,363 Accounts receivable, net of allowance for doubtful accounts of $7,973 in 1996 and $9,684 in 1995 69,318 104,717 Prepaid insurance and other assets 116 22,438 --------------------------------------- Total assets $ 646,332 $ 1,161,779 ======================================= LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 3,523 $ 3,523 Prepaid deposits 25,734 12,939 --------------------------------------- Total liabilities 29,257 16,462 Partners' capital (deficit): Limited Partners (16,914 units) 685,366 1,208,326 General Partner (68,291 ) (63,009 ) -------------- -------------- Total partners' capital 617,075 1,145,317 --------------------------------------- Total liabilities and partners' capital $ 646,332 $ 1,161,779 =======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 ----------------------------- ----------------------------- Revenues: Lease revenue $ 83,286 $ 141,042 $ 271,607 $ 503,101 Interest and other income 2,979 4,070 10,652 18,046 Gain on disposition of equipment 3,692 424 21,893 234,869 ----------------------------- ----------------------------- Total revenues 89,957 145,536 304,152 756,016 Expenses: Depreciation 50,365 67,502 156,154 211,449 Management fees to affiliate 10,568 10,568 32,592 34,785 Repairs and maintenance 24,439 32,263 81,795 119,546 General and administrative expenses to affiliates 16,581 34,618 74,569 126,011 Other general and administrative expenses 1,386 19,071 41,717 33,814 --------------------------------------------------------------- Total expenses 103,339 164,022 386,827 525,605 Equity in net (loss) income of special unconsolidated purpose entity (296 ) -- 111,247 -- ----------------------------- ----------------------------- Net income (loss) $ (13,678 ) $ (18,486 ) $ 28,572 $ 230,411 ============================= ============================= Partners' share of net income (loss): Limited Partners - 99% $ (13,541 ) $ (18,301 ) $ 28,286 $ 228,107 General Partner - 1% (137 ) (185 ) 286 2,304 ----------------------------- ----------------------------- Total $ (13,678 ) $ (18,486 ) $ 28,572 $ 230,411 ============================= ============================= Net income (loss) per Limited Partnership Unit (16,914 units) $ (0.80 ) $ (1.08 ) $ 1.67 $ 13.49 ============================= ============================= Cash distributions $ 59,265 $ 98,772 $ 256,814 $ 308,194 ============================= ============================= Cash distributions per Limited Partnership Unit $ 3.47 $ 5.78 $ 15.03 $ 18.04 ============================= ============================= Special distributions $ 300,000 $ -- $ 300,000 $ 500,000 ============================= ============================= Special distributions per Limited Partnership Unit $ 17.56 $ -- $ 17.56 $ 29.27 ============================= ============================= Total distributions per Limited Partnership Unit $ 21.03 $ 5.78 $ 32.59 $ 47.31 ============================= =============================
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, 1994 to September 30, 1996
Limited General Partners Partners Total ------------------------------------------------------ Partners' capital (deficit) at December 31, 1994 $ 1,849,276 $ (56,534 ) $ 1,792,742 Net income 256,946 2,595 259,541 Cash distributions (897,896 ) (9,070 ) (906,966 ) ------------------------------------------------------ Partners' capital (deficit) at December 31, 1995 1,208,326 (63,009 ) 1,145,317 Net income 28,286 286 28,572 Quarterly cash distributions (254,246 ) (2,568 ) (256,814 ) Special cash distributions (297,000 ) (3,000 ) (300,000 ) ------------------------------------------------------ Partners' capital (deficit) at September 30, 1996 $ 685,366 $ (68,291 ) $ 617,075 ======================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996 1995 -------------------------------- Operating activities: Net income $ 28,572 $ 230,411 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (21,893 ) (234,869 ) Depreciation 156,154 211,449 Income from unconsolidated special purpose entity in excess of cash distributions (137,175 ) -- Change in operating assets and liabilities Accounts receivable, net 35,399 49,154 Due to affiliates -- 15,308 Prepaid deposits 12,795 (30,008 ) Prepaid insurance and other assets 22,322 3,439 Accounts payable and other liabilities -- 2,098 -------------------------------- Cash provided by operating activities 96,174 246,982 -------------------------------- Investing activities: Proceeds from disposition of equipment 61,808 532,486 Liquidation proceeds from unconsolidated special purpose entity 270,538 -- Payments for purchase of capital improvements -- (2,237 ) -------------------------------- Cash provided by investing activities 332,346 530,249 -------------------------------- Cash flows used in financing activities: Cash distributions paid to Limited Partners (551,246 ) (800,112 ) Cash distributions paid to General Partner (5,568 ) (8,082 ) -------------------------------- Cash used in financing activities (556,814 ) (808,194 ) -------------------------------- Net decrease in cash and cash equivalents (128,294 ) (30,963 ) Cash and cash equivalents at beginning of period 248,504 312,230 -------------------------------- Cash and cash equivalents at end of period $ 120,210 $ 281,267 ================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 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 primarily of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1996, the statements of operations for the three and nine months ended September 30, 1996 and 1995, the statements of changes in partners' capital for the period from December 31, 1994 to September 30, 1996, and the statements of cash flows for the nine months ended September 30, 1996 and 1995. 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, 1995, 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 estimated net realizable value and is subject to a pending contract for sale. The components of owned equipment are as follows:
September 30, December 31, 1996 1995 ------------------------------------ Rail equipment $ 35,700 $ 178,501 Marine containers 114,623 137,548 Trailers and tractors 3,412,789 3,691,416 ------------------------------------ 3,563,112 4,007,465 Less accumulated depreciation (3,139,998 ) (3,354,708 ) ------------------------------------ 423,114 652,757 Equipment held for sale 33,574 -- ------------------------------------ Net equipment $ 456,688 $ 652,757 ====================================
All of the equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of September 30, 1996. Four railcars with a pending sale contract and an aggregate net book value of $33,574 were reclassified as assets held for sale in the third quarter of 1996. With the exception of two trailers with a carrying value of $16,119, all of the equipment was either on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1995. During the nine months ended September 30, 1996, the Partnership sold or disposed of eight trailers and one marine container with an aggregate net book value of $39,915 for proceeds of $61,808. During the nine months ended September 30, 1995, the Partnership sold or disposed of four trailers, one marine container, and five twin stack railcars with an aggregate net book value of $297,618 for proceeds of $532,487. 3. Liquidation and special distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received, the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 3. Liquidation and special distributions (continued) liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. During the nine months ended September 30, 1996 and 1995, the General Partner paid special distributions of $17.56 and $29.27, respectively, per Limited Partnership Unit which were the result of proceeds from equipment liquidations. The Partnership is not permitted to reinvest proceeds from sales or liquidations of equipment. These proceeds, in excess of operational cash requirements, are periodically paid out to limited partners in the form of special distributions. The sales and liquidations occur because of equipment destructions, the determination by the General Partner that it is the appropriate time to maximize the return on an asset through sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. 4. Investment in Unconsolidated Special Purpose Entity Prior to 1996, the Partnership accounted for operating activities associated with joint ownership of rental equipment as undivided interests, including its proportionate share of each asset with similar wholly-owned assets in its financial statements. Under generally accepted accounting principles, the effects of such activities, if material, should be reported using the equity method of accounting. Therefore, effective January 1, 1996, the Partnership adopted the equity method to account for its investment in such jointly-held assets. The principal differences between the previous accounting method and the equity method relate to the presentation of activities relating to these assets in the statement of operations. Whereas, under equity accounting the Partnership's proportionate share is presented as a single net amount, "equity in net income (loss) of unconsolidated special purpose entities", under the previous method, the Partnership's statement of operations reflected its proportionate share of each individual item of revenue and expense. Accordingly, the effect of adopting the equity method of accounting has no cumulative effect on previously reported partner's capital or on the Partnership's net income (loss) for the period of adoption. Because the effects on previously issued financial statements of applying the equity method of accounting to investments in jointly-owned assets are not considered to be material to such financial statements taken as a whole, previously issued financial statements have not been restated. However, certain items have been reclassified in the previously issued balance sheet to conform to the current period presentation. During the nine months ended September 30, 1996, the General Partner sold the Partnership's 30% interest in a commuter aircraft, included in "Investment in Unconsolidated Special Purpose Entities" for proceeds of $270,538. The Partnership received liquidating distributions from the Unconsolidated Special Purpose Entities during the second quarter of 1996. 5. Subsequent Event On October 24, 1996, the General Partner sold four railcars for proceeds of $98,000, which were classified as assets held for sale at September 30, 1996. The net book value of these railcars were $33,574. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
September 30, December 31, 1996 1995 --------------------------------------- Equipment held for operating leases, at cost $ 1,624,406 $ 1,716,659 Less accumulated depreciation (1,397,850 ) (1,405,716 ) --------------------------------------- Net equipment 226,556 310,943 Cash and cash equivalents 74,419 191,840 Accounts receivable, net of allowance for doubtful accounts of $30,229 in 1996 and $33,793 in 1995 40,733 48,723 Due from affiliates -- 7,639 Prepaid insurance and other assets 1,185 16,549 --------------------------------------- Total assets $ 342,893 $ 575,694 ======================================= LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 1,985 $ -- Accounts payable and other liabilities 4,946 8,338 --------------------------------------- 6,931 8,338 Partners' capital (deficit): Limited Partners (9,529 units) 374,429 603,509 General Partner (38,467 ) (36,153 ) --------------------------------------- Total partners' capital 335,962 567,356 --------------------------------------- Total liabilities and partners' capital $ 342,893 $ 575,694 =======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 ----------------------------- ----------------------------- Revenues: Lease revenue $ 42,621 $ 59,601 $ 132,068 $ 214,872 Interest and other income 595 4,946 4,737 20,387 Gain on disposition of equipment 8,491 26,015 18,580 78,354 ----------------------------- ----------------------------- Total revenues 51,707 90,562 155,385 313,613 Expenses: Depreciation 22,563 24,872 69,102 86,332 Management fees to affiliate 5,956 5,955 17,867 18,294 Repairs and maintenance 5,008 9,495 22,185 41,914 Provision for (recovery of) bad debts (2,673 ) 4,770 (4,398 ) 41,074 General and administrative expenses to affiliates 7,487 14,495 33,054 55,847 Other general and administrative expenses 7,246 10,593 33,681 39,509 ----------------------------- ----------------------------- ----------------------------- Total expenses 45,587 70,180 171,491 282,970 ----------------------------- ----------------------------- Net income (loss) $ 6,120 $ 20,382 $ (16,106 ) $ 30,643 ============================= ============================= Partners' share of net income (loss): Limited Partners - 99% $ 6,059 $ 20,178 $ (15,945 ) $ 30,337 General Partner - 1% 61 204 (161 ) 306 ----------------------------- ----------------------------- Total $ 6,120 $ 20,382 $ (16,106 ) $ 30,643 ============================= ============================= Net income (loss) per Limited Partnership Unit (9,529 units) $ 0.64 $ 2.12 $ (1.67 ) $ 3.18 ============================= ============================= Cash distributions $ 18,798 $ 50,745 $ 115,288 $ 214,232 ============================= ============================= Cash distributions per Limited Partnership Unit $ 1.95 $ 5.27 $ 11.98 $ 22.26 ============================= ============================= Special distributions $ -- $ 100,000 $ 100,000 $ 500,000 ============================= ============================= Special distributions per Limited Partnership Unit $ -- $ 10.39 $ 10.39 $ 51.95 ============================= ============================= Total distributions per Limited Partnership Unit $ 1.95 $ 15.66 $ 22.37 $ 74.21 ============================= =============================
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, 1994 to September 30, 1996
Limited General Partners Partners Total ------------------------------------------------------ Partners' capital (deficit) at December 31, 1994 $ 1,413,009 $ (27,977 ) $ 1,385,032 Net income 45,590 461 46,051 Cash distributions (855,090 ) (8,637 ) (863,727 ) ------------------------------------------------------ Partners' capital (deficit) at December 31, 1995 603,509 (36,153 ) 567,356 Net loss (15,945 ) (161 ) (16,106 ) Quarterly cash distributions (114,135 ) (1,153 ) (115,288 ) Special cash distributions (99,000 ) (1,000 ) (100,000 ) ------------------------------------------------------ Partners' capital (deficit) at September 30, 1996 $ 374,429 $ (38,467 ) $ 335,962 ======================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996 1995 -------------------------------- Operating activities: Net (loss) income $ (16,106 ) $ 30,643 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Gain on disposition of equipment (18,580 ) (78,354 ) Depreciation 69,102 86,332 Changes in operating assets and liabilities Accounts receivable, net 7,990 88,631 Due to/from affiliate 9,624 (5,895 ) Prepaid insurance and other assets 15,364 2,002 Accounts payable and other liabilities (3,392 ) 436 -------------------------------- Cash provided by operating activities 64,002 123,795 -------------------------------- Investing activities: Proceeds from disposition of equipment 33,865 364,401 -------------------------------- Cash provided by investing activities 33,865 364,401 -------------------------------- Cash flows used in financing activities: Cash distributions paid to Limited Partners (213,135 ) (707,090 ) Cash distributions paid to General Partner (2,153 ) (7,142 ) -------------------------------- Cash used in financing activities (215,288 ) (714,232 ) -------------------------------- Net decrease in cash and cash equivalents (117,421 ) (226,036 ) Cash and cash equivalents at beginning of period 191,840 524,782 -------------------------------- Cash and cash equivalents at end of period $ 74,419 $ 298,746 ================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 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 primarily of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1996, and the statements of operations for the three and nine months ended September 30, 1996 and 1995, the statements of changes in partners' capital for the period from December 31, 1994 to September 30, 1996, and the statements of cash flows for the nine months ended September 30, 1996 and 1995. 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, 1995, 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:
September 30, December 31, 1996 1995 ------------------------------------ Marine containers $ 268,966 $ 330,886 Trailers 1,355,440 1,385,773 ------------------------------------ 1,624,406 1,716,659 Less accumulated depreciation (1,397,850 ) (1,405,716 ) ------------------------------------ Net equipment $ 226,556 $ 310,943 ====================================
All equipment owned by the Partnership was either on lease or operating in PLM-affiliated short-term rental facilities as of September 30, 1996 and December 31, 1995. During the nine months ended September 30, 1996, the Partnership sold or disposed of 32 marine containers and one trailer with an aggregate net book value of $15,285 for proceeds of $33,865. During the nine months ended September 30, 1995, the Partnership sold or disposed of 30 trailers and 38 marine containers with an aggregate net book value of $286,047 for proceeds of $364,401. 3. Liquidation and special distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received, the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1996 3. Liquidation and special distributions (continued) estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. During the nine months ended September 30, 1996 and September 30, 1995, the General Partner paid special distributions of $10.39 and $51.95, respectively, per Limited Partnership Unit which were the result of proceeds from equipment liquidations. The Partnership is not permitted to reinvest proceeds from sales or liquidations of equipment. These proceeds, in excess of operational cash requirements, are periodically paid out to limited partners in the form of special distributions. The sales and liquidations occur because of equipment destructions, the determination by the General Partner that it is the appropriate time to maximize the return on an asset through sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (I) Results of operations Comparison of the Partnership's Operating Results for the Three Months Ended September 30, 1996 and 1995 TEP IXA (A) Revenues Total revenues of $392,472 for the quarter ended September 30, 1996, increased from $177,949 for the same period in 1995, due primarily to higher gain on disposition of equipment, offset by lower lease revenues, and lower interest and other income in the third quarter of 1996, compared to the same period in 1995. (1) Lease revenue decreased to $97,143 in the third quarter 1996, from $151,828 in the same period of 1995. The following table lists lease revenues earned by equipment type: For the three months ended September 30, 1996 1995 ------------------------------- Trailers $ 73,480 $ 96,630 Rail equipment 7,591 15,450 Marine containers 16,072 39,748 ------------------------------ $ 97,143 $ 151,828 ============================== The decline was due primarily to the following: (a) Trailer revenue decreased $23,150 due primarily to a decline in utilization in the short-term rental facilities in 1996, compared to 1995 levels; (b) Railcar revenue decreased $7,859 in the third quarter of 1996 due to the sale of all railcars owned by the Partnership for $365,000 in proceeds; (c) Marine container revenue decreased $23,676 due to a decline in utilization in the third quarter of 1996, compared to 1995 levels. (2) For the quarter ended September 30, 1996, the Partnership realized a total gain of $292,451 on the disposition of 10 railcars, six marine containers and one trailer, compared to the same period in 1995, where the Partnership realized a gain of $9,857 on the sale or disposition of two marine containers. (B) Expenses Total expenses of $105,426 for the quarter ended September 30, 1996, decreased from $145,200 for the same period in 1995. The decrease in 1996 expenses was attributable to decreases in depreciation expense, general and administrative expenses, and repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $19,772 in the third quarter of 1996, from $22,951 in the same quarter of 1995, due primarily to a decrease of trailer and railcar repairs and maintenance due to sales of the Partnership's equipment. (2) Indirect operating expenses (defined as depreciation expense, management fees, and general and administrative expenses) decreased to $85,654 in the third quarter of 1996, from $122,249 in the same period in 1995. This change resulted primarily from: (a) a $27,941 decrease in general and administrative expenses from 1995 levels due to lower bad debt expense and lower administrative costs associated with the short-term rental facilities due to the decreased volume of trailers operating in these facilities; (b) a $8,654 decrease in depreciation expense from 1995 levels reflecting asset sales or dispositions during 1996 and 1995. (C) Net Income The Partnership's net income of $287,046 in the third quarter 1996, increased from $32,749 in the same period in 1995. 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 third quarter 1996, is not necessarily indicative of future periods. In the third quarter 1996, the Partnership distributed $66,914 to the Limited Partners, or approximately $2.76 per unit. TEP IXB (A) Owned equipment operations Lease revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expenses) on owned equipment decreased during the third quarter of 1996 when compared to the same quarter of 1995. The following table presents lease revenues less direct expenses by owned equipment type:
For the three months ended September 30, 1996 1995 ------------------------------ Trailers $ 22,733 $ 29,675 Railcar equipment 18,423 17,724 Marine containers 3,781 11,163
Trailers: Trailer lease revenues and direct expenses were $32,739 and $10,006, respectively, for the three months ended September 30, 1996, compared to $50,853 and $21,178, respectively, during the same quarter of 1995. The decrease in net contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers; Railcar equipment: Railcar lease revenues and direct expenses were $21,870 and $3,447, respectively, for the three months ended September 30, 1996, compared to $21,870 and $4,146, respectively, during the same quarter of 1995. The increase of net contribution was due to running repairs needed in the third quarter of 1995 which were not required in the third quarter in 1996; Marine containers: Marine container lease revenues and direct expenses were $3,820 and $39, respectively, for the three months ended September 30, 1996, compared to $11,343 and $180, respectively, during the same quarter of 1995. The number of marine containers owned by the Partnership has been declining due to sales and dispositions. The result of this declining fleet has been a decrease in marine container net contribution. (B) Indirect expenses related to owned equipment Total indirect expenses of $59,644 for the three months ended September 30, 1996, decreased from $85,663 for the same period of 1995. The variance is explained as follows: (a) a $12,093 decrease in general and administrative expenses from 1995 levels due to decreased administrative costs associated with the short-term rental facilities due to decreased volume of trailers operating in these facilities; (b) a $7,815 decrease in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (c) a $6,111 decrease in depreciation expense from 1995 levels reflecting assets sales or dispositions during 1996 and 1995. (C) For the quarter ended September 30, 1996, the Partnership realized a gain of $8,473 on the sale or disposition of one trailer and two marine containers, compared to the same period in 1995, when the Partnership realized a gain of $27,862 on the sale or disposal of six trailers and one marine container. (D) Interest and other income Interest and other income decreased $1,980 during the third quarter of 1996 due primarily to lower cash balances available for investments when compared to the same period of 1995. (E) Equity in net income of the unconsolidated special purpose entity Equity in net income of unconsolidated special purpose entity was $231,147 and $27,355 for the three months ended September 30, 1996 and 1995, respectively, and represents the operating income generated from a jointly-owned aircraft accounted for under the equity method and the gain ($258,708) resulting from the sale of this investment for proceeds of $442,500. (see Note 4 to the financial statements). (F) Net Income The Partnership's net income of $228,449 in the third quarter of 1996, compared to $33,632 in the same period in 1995. 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 third quarter 1996, is not necessarily indicative of future periods. In the third quarter 1996, the Partnership distributed $546,233 to the Limited Partners, or approximately $31.29 per unit which included a special distribution of $25.52 per unit. TEP IXC (A) Owned equipment operations Lease revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expenses) on owned equipment decreased during the third quarter of 1996 when compared to the same quarter of 1995. The following table presents lease revenues less direct expenses by owned equipment type:
For the three months ended September 30, 1996 1995 -------------------------------- Trailers $ 52,629 $ 79,735 Railcar equipment 5,419 6,722 Marine containers 445 3,622
Trailers: Trailer lease revenues and direct expenses were $75,026 and $22,397, respectively, for the three months ended September 30, 1996, compared to $112,465 and $32,730, respectively, during the same quarter of 1995. The decrease in net contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers; Railcar equipment: Railcar lease revenues and direct expenses were $7,800 and $2,381, respectively, for the three months ended September 30, 1996, compared to $7,800 and $1,078, respectively, during the same quarter of 1995. The decrease in net contribution was due to lower repairs and maintance expenses in the third quarter of 1996 as compared to the third quarter of 1995; Marine containers: Marine container lease revenues and direct expenses were $460 and $15 respectively, for the three months ended September 30, 1996, compared to $3,677 and $55, respectively, during the same quarter of 1995. The number of marine containers owned by the Partnership has been declining due to sales and dispositions. The result of this declining fleet has resulted in a decrease in marine container net contribution. (B) Indirect expenses related to owned equipment Total indirect expenses of $78,546 for the three months ended September 30, 1996, decreased from $117,229 for the same period of 1995. The variance is explained as follows: (a) a $20,975 decrease in general and administrative expenses due to lower indirect costs associated with the short-term rental facilities in the third quarter of 1996 as compared to the third quarter of 1995; (b) a $13,314 decrease in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (c) a $4,394 decrease in depreciation expense from 1995 levels reflecting asset sales during 1995 and 1996. (C) For the quarter ended September 30, 1996, the Partnership realized a gain of $3,692 on the disposal of one trailer compared to the same period in 1995, when the Partnership realized a gain of $424 on the sale or disposal of one trailer and one marine container. (D) Interest and other income Interest and other income decreased $1,091 during the third quarter of 1996 due primarily to lower cash balances available for investments when compared to the same period of 1995. (E) Equity in net income (loss) of the unconsolidated special purpose entity Equity in net loss of unconsolidated special purpose entity of $296 for the third quarter of 1996, decreased from net income of $4,170 for the third quarter of 1995, and represents the operating income (loss) generated from a jointly-owned aircraft accounted for under the equity method (see Note 4 to the financial statements). The aircraft incurred a loss in the third quarter of 1996 compared to net income for the same quarter of 1995, due to the sale of the aircraft in April of 1996. Some expenses were paid in the third quarter of 1996 for the sold aircraft. (F) Net Income The Partnership incurred a net loss of $13,678 in the third quarter 1996, compared to a net loss of $18,486 in the same period in 1995. 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 third quarter 1996, is not necessarily indicative of future periods. In the third quarter 1996, the Partnership distributed $355,672 to the Limited Partners, or approximately $21.03 per unit which included a special distribution of $17.56 per unit. TEP IXD (A) Revenues Total revenues of $51,707 for the quarter ended September 30, 1996, decreased from $90,562 for the same period in 1995, due primarily to a lower gain on sale of equipment, lower lease revenues, and lower interest and other income in the third quarter of 1996 as compared to the same period in 1995. (1) Lease revenues decreased to $42,621 in the third quarter 1996, from $59,601 in the same period in 1995. The following table lists lease revenue earned by equipment type:
For the nine months ended September 30, 1996 1995 ------------------------------ Trailers $ 32,456 $ 34,871 Marine containers 10,165 24,730 ------------------------------ $ 42,621 $ 59,601 ==============================
The decline was due primarily to the following: (a) Trailer revenue decreased $2,415 due primarily to lower utilization in short-term rental facilities operated by an affiliate of the General Partner; (b) Marine container revenue decreased $14,565 primarily due to the disposal of equipment. (2) For the quarter ended September 30, 1996, the Partnership realized a gain of $8,491 on the disposal of 10 marine containers, when the Partnership realized a gain of $26,015 on the disposal of 11 marine containers in the quarter ended September 30, 1995. (B) Expenses Total expenses of $45,587 for the quarter ended September 30, 1996, decreased from $70,180 for the same period in 1995. The decrease in the third quarter of 1996 expenses was attributable primarily to decreases in general and administrative expense, bad debt expense, repair and maintenance, and depreciation expense. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $5,008 in the third quarter of 1996, from $9,495 in the same period in 1995. This change resulted primarily from decreased trailer repairs and maintenance expense. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and general and administrative expenses) decreased to $40,579, in the third quarter 1996, from $60,685 in the same period in 1995. This change resulted primarily from: (a) a $10,355 decrease in general and administrative expense due to a decrease in indirect costs associated with the short-term rental facilities as compared to the third quarter of 1996; (b) a $7,443 decrease in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (c) a $2,309 decrease in depreciation expense from 1995 levels, reflecting asset sales or dispositions during 1995 and 1996. (C) Net Income The Partnership's had a net income of $6,120 in the third quarter 1996, compared to $20,382 in the same period in 1995. 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 third quarter 1996, is not necessarily indicative of future periods. In the third quarter 1996, the Partnership distributed $18,610 to the Limited Partners, or approximately $1.95 per unit. Comparison of the Partnership's Operating Results for the Nine Months Ended September 30, 1996 and 1995 TEP IXA (A) Revenues Total revenues of $670,507 for the nine months ended September 30, 1996, decreased from $970,608 for the same period in 1995, due primarily to lower gain on the sale of assets, lower lease revenue, and a decrease in interest and other income. (1) Lease revenue decreased to $317,352, in the nine months ended September 30, 1996, from $392,052 in the same period of 1995. The following table lists lease revenues earned by equipment type: For the nine months ended September 30, 1996 1995 ------------------------------ Trailers $ 209,576 $ 260,239 Rail equipment 38,491 46,350 Marine containers 69,285 85,463 ------------------------------ $ 317,352 $ 392,052 ============================== The decline was due primarily to the following: (a) Trailer revenue decreased $50,663 due to lower utilization of trailers in the short-term rental facilities in 1996, compared to 1995 levels; (b) Rail equipment revenue decreased $7,859 due to the sale of all railcars in the third quarter of 1996 for $365,000; (c) Marine container revenue decreased $16,178 due to lower utilization rates on certain containers in the first nine months of 1996, when compared to the same period of 1995, and by the disposal of equipment. (2) For the nine months ended September 30, 1996, the Partnership realized a gain of $337,432 on the sale or disposition of 10 railcars, two trailers, and 16 marine containers, compared to the same period in 1995, where the Partnership realized a gain of $555,197 on the sale or disposition of one trailer, seven marine containers, and one commuter aircraft which was under the sales-type lease. (B) Expenses Total expenses of $356,369 for the nine months ended September 30, 1996, decreased from $582,411 for the same period in 1995. The decrease in 1996 expenses was attributable to decreases in repairs and maintenance, depreciation expense, and general and administrative expenses. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $45,671 in 1996, from $128,770 in 1995. This decrease was due primarily to decrease in repairs and maintenance for trailers in the short-term rental facilities. In the first nine months of 1995, repairs were made on former term lease trailers prior to transitioning into the short-term rental facilities. Additionally, the Partnership had a decrease in aircraft repairs and maintenance in 1996 due to the sale of the Partnership's commuter aircraft during the first quarter of 1996. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $310,698 in the nine months ended September 30, 1996, from $453,641 in the same period in 1995. This change resulted primarily from: (a) a $104,772 decrease in depreciation expense from 1995 levels reflecting assets sales or dispositions during 1996 and 1995; (b) a $39,019 decrease in general and administrative expenses from 1995 levels due to lower administrative costs associated with the Partnership. (C) Net Income The Partnership's net income decreased to $314,138 in the nine months ended September 30, 1996, from $388,197 in the same period in 1995. 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 nine months ended September 30, 1996, is not necessarily indicative of future periods. In the nine months ended September 30, 1996, the Partnership distributed $1,297,167 to the Limited Partners, or approximately $53.41 per unit which included a special distribution of $44.84 per unit. TEP IXB (A) Owned equipment operations Revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expense) on owned equipment decreased in the nine months ended September 30, 1996, when compared to the same period of 1995. The following table presents revenues less direct expenses by owned equipment type:
For the nine months ended September 30, 1996 1995 ------------------------------ Trailers $ 91,239 $ 111,059 Railcar equipment 60,580 56,567 Marine containers 16,474 25,493
Trailers: Trailer revenues and direct expenses were $123,793 and $32,554, respectively, for the nine months ended September 30, 1996, compared to $156,780 and $45,721, respectively, during the same period of 1995. The decrease in net contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers; Railcar equipment: Railcar revenues and direct expenses were $65,610 and $5,030, respectively, for the nine months ended September 30, 1996, compared to $64,667 and $8,100, respectively, during the same period of 1995. The increase in net contribution was due to running repairs required on certain railcars in the fleet in the first nine months of 1995, which did not occur in 1996; Marine containers: Marine container revenues and direct expenses were $16,627 and $153, respectively, for the nine months ended September 30, 1996, compared to $26,078 and $585, respectively, during the same period of 1995. The number of marine containers owned by the Partnership has been declining due to sales and dispositions. The result of this declining fleet is a decrease in marine container net contribution. (B) Indirect expenses related to owned equipment Total indirect expenses of $212,485 for the nine months ended September 30, 1996, decreased from $296,836 for the same period of 1995. The variance is explained as follows: (a) a $35,369 decrease in general and administrative expenses from 1995 levels. This reflects the decreased administrative costs associated with the short-term rental facilities, and lower data processing expense; (b) a $27,867 decrease in depreciation expense from 1995 levels reflecting assets sales or dispositions during 1996 and 1995; (c) a $21,115 decrease in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees. (C) For the nine months ended September 30, 1996, the Partnership realized a gain of $38,239 on the disposal of four marine containers and eight trailers compared to the same period in 1995, where the Partnership realized a gain of $100,416 on the sale or disposition of 20 trailers and four marine containers. (D) Interest and other income Interest and other income decreased $5,613 during the first nine months of 1996 due primarily to lower cash balances available for investments when compared to the same period of 1995. (E) Equity in net income of unconsolidated special purpose entity Equity in net income of unconsolidated special purpose entity was $192,041 and $81,148 for the nine months ended September 30, 1996 and 1995, respectively, and represents the operating income generated from a jointly-owned aircraft accounted for under the equity method (see Note 4 to the financial statements). The increase in aircraft net contribution was due to the sale of the aircraft during the third quarter of 1996 for a gain of $258,708, partially offset by the off-lease status of the aircraft during the first nine months of 1996. (C) Net Income The Partnership's net income of $197,363 in the nine months ended September 30, 1996, compared to $94,735 in the same period in 1995. 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 nine months ended September 30, 1996, is not necessarily indicative of future periods. In the nine months ended September 30, 1996, the Partnership distributed $747,701 to the Limited Partners, or approximately $42.83 per unit which included a special distribution of $25.52 per unit. TEP IXC (A) Owned equipment operations Revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expenses) on owned equipment decreased during the first nine months of 1996 when compared to the same period of 1995. The following table presents revenues less direct expenses by owned equipment type:
For the nine months ended September 30, 1996 1995 --------------------------------- Trailers $ 166,114 $ 291,187 Railcar equipment 18,724 27,221 Marine containers 3,661 8,421
Trailers: Trailer revenues and direct expenses were $244,489 and $78,375, respectively, for the nine months ended September 30, 1996, compared to $409,294 and $118,107, respectively, during the same quarter of 1995. The decrease of net contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers; Railcar equipment: Railcar revenues and direct expenses were $23,400 and $4,676, respectively, for the nine months ended September 30, 1996, compared to $33,909 and $6,688, respectively during the same quarter of 1995. The decrease in net contribution was due to the sale of railcar equipment; Marine containers: Marine container revenues and direct expenses were $3,718 and $57, respectively, for the three months ended September 30, 1996, compared to $8,598 and $177, respectively, during the same quarter of 1995. The number of marine containers owned by the Partnership has been declining due to sales and dispositions. The result of this declining fleet is a decrease in marine container net contribution. (B) Indirect expenses related to owned equipment Total indirect expenses of $303,719 for the nine months ended September 30, 1996, decreased from $361,598 for the same period of 1995. The variance is explained as follows: (a) a $28,433 decrease in general and administrative expenses due to lower administrative costs associated with the short-term rental facilities due to a decreased volume of trailers operating in these facilities; (b) a $17,067 decrease in depreciation expense from 1995 levels reflecting asset sales during 1996; (c) an $10,186 increase in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (d) a $2,193 decrease in management fees due to lower levels of operating cash flow during the comparable periods. Monthly 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) For the nine months ended September 30, 1996, the Partnership realized a gain of $21,893 on the sale of eight trailers and one marine container, compared to the same period in 1995, when the Partnership realized a gain of $234,869 on the sale or disposal of four trailers, five twin stack railcars, and one marine container. (D) Interest and other income decreased $7,394 due to a decrease in cash available for short-term investment. (E) Equity in net income of unconsolidated special purpose entity Equity in net income of unconsolidated special purpose entity was $111,247 and $12,265 for the nine months ended September 30, 1996 and 1995, respectively, and represents the net income generated from jointly-owned aircraft accounted for under the equity method (see Note 4 to the financial statements). The increase in aircraft net contribution was primarily due to the gain of $134,192 realized on the sale of the aircraft in April of 1996. (F) Net Income The Partnership's net income decreased to $28,572 in the nine months ended September 30, 1996, from $230,411 in the same period in 1995. 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 nine months ended September 30, 1996, is not necessarily indicative of future periods. In the nine months ended September 30, 1996, the Partnership distributed $551,246 to the Limited Partners, or approximately $32.59 per unit which included a special distribution of $17.56 per unit. TEP IXD (A) Revenues Total revenues of $155,385 for the nine months ended September 30, 1996 decreased from $313,613 for the same period in 1995 due primarily to lower lease revenues, a lower gain on sale of equipment, and lower interest and other income in 1996 compared to 1995. (1) Lease revenues decreased to $132,068 in the nine months ended September 30, 1996, from $214,872 in the same period in 1995. The following table lists lease revenue earned by equipment type: For the nine months ended September 30, 1996 1995 ------------------------------ Trailers $ 93,000 $ 149,322 Marine containers 39,068 65,550 ------------------------------ $ 132,068 $ 214,872 ============================== The decrease was due to the following: (a) Trailer revenue decreased $56,322 due primarily to lower utilization in short-term rental facilities operated by an affiliate of the General Partner and a reduction in the size of the trailer fleet; (b) Marine container revenue decreased $26,482 primarily due to the disposal of equipment. (2) For the nine months ended September 30, 1996, the Partnership realized a gain of $18,580 on the sale or disposal of one trailer and 32 marine containers, compared to the same period in 1995, where the Partnership realized a gain $78,354 on the sale or disposal of 30 trailers and 38 marine containers. (3) Interest and other income decreased $15,650 due to a decrease in cash available for short-term investment. (B) Expenses Total expenses of $171,491 for the nine months ended September 30, 1996, decreased from $282,970 for the same period in 1995. The decrease in 1996 expenses was attributable primarily to decreases in bad debt expense, general and administrative expenses, repair and maintenance, and depreciation. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $22,185 in the nine months ended September 30, 1996, from $41,914 in the same period in 1995. This change resulted primarily from the disposal of trailers and containers. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and general and administrative expenses) decreased to $149,306 in the nine months ended September 30, 1996, from $241,056 in the same period in 1995. This change resulted primarily from: (a) a $45,472 decrease in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (b) a $28,621 decrease in general and administrative expenses from 1995 levels due to lower administrative costs associated with the Partnership; (c) a $17,230 decrease in depreciation expense from 1995 levels, reflecting asset sales or dispositions during 1996. (C) Net Income (loss) The Partnership incurred a loss of $16,106 in the nine months ended September 30, 1996, compared to a net income of $30,643 in the same period in 1995. 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 nine months ended September 30, 1996, is not necessarily indicative of future periods. In the nine months ended September 30, 1996, the Partnership distributed $213,135 to the Limited Partners, or approximately $22.37 per unit which included a special distribution of $10.39 per unit. (II) Asset Sales Equipment sales and dispositions result from General Partner decisions on liquidations, 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. During the nine months ended September 30, 1996, 10 railcars, 16 marine containers and two trailers owned by TEP IXA were sold for a total of $464,899. In addition, the Partnership received additional proceeds of $2,629 for the commuter aircraft which was under a sales-type lease. Eight trailers and four marine containers owned by TEP IXB were sold for a total of $91,509; eight trailers and one marine container owned by TEP IXC were sold for $61,808; and 32 marine containers and one trailer owned by TEP IXD were sold or disposed of for $33,865. In addition, during the nine months ended September 30, 1996, TEP IXB sold its 50% investment in a commuter aircraft for $442,500 and TEP IXC sold its 30% investment in a commuter aircraft for $270,538. As discussed in Note 3, the General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. (III) Market Values In accordance with SFAS 121, the General Partner reviews the carrying value of its equipment portfolio at least annually in relation to expected future market conditions for the purpose of assessing recoverability of the recorded amounts. If projected future lease revenue plus residual values are less than the carrying value of the equipment, a loss on revaluation is recorded. No adjustments to reflect impairment of individual equipment carrying values were required for the nine months ended September 30, 1996. As of September 30, 1996, the General Partner estimated the current fair market value of each Partnerships' equipment portfolio to be approximately : $1.2 million, $0.9 million, $1.5 million and $0.9 million for TEP IXA, TEP IXB, TEP IXC and TEP IXD, respectively. (IV) 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 IXC 1986 INCOME FUND By: PLM Financial Services, Inc. General Partner Date: November 12, 1996 By: /s/ David J. Davis ------------------- David J. Davis Vice President and Corporate Controller EX-27 2
5 9-MOS DEC-31-1996 SEP-30-1996 120,210 0 69,318 7,973 0 0 3,563,112 3,139,998 646,332 0 0 0 0 0 617,075 646,332 0 304,152 0 386,827 0 0 0 28,572 0 28,572 0 0 0 28,572 0 0
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