-----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, N2DbTNCbr4TSImE7pzVjVfoL/3H05RJv6Aoq83cRdsgvpNxHlAwTAsPVAT9pTUGK iR2VBY5bCkaWwq3iQQYP9Q== 0000778793-98-000003.txt : 19980518 0000778793-98-000003.hdr.sgml : 19980518 ACCESSION NUMBER: 0000778793-98-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 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: SEC FILE NUMBER: 000-15439 FILM NUMBER: 98623470 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 March 31, 1998. [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 0-15439 ----------------------- PLM Transportation Equipment Partners IXC 1986 Income Fund (Exact name of registrant as specified in its charter) California 94-2992020 (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 BALANCE SHEETS
March 31, December 31, 1998 1997 ------------------------------------------ Assets Equipment held for operating leases, at cost $ 456,512 $ 715,860 Less accumulated depreciation (442,154) (674,944) ------------------------------------------ Net equipment 14,358 40,916 Cash and cash equivalents 111,858 376,794 Accounts receivable, net of allowance for doubtful accounts of $41,110 in 1998 and $45,515 in 1997 10,988 25,471 Prepaid insurance 442 661 ------------------------------------------ Total assets $ 137,646 $ 443,842 ========================================== Liabilities and capital Liabilities: Accounts payable $ 6,253 $ 16,202 Due to affiliates -- 5,059 Total liabilities 6,253 21,261 Capital: Beneficiaries or limited partners (24,285 units) 114,381 402,657 Beneficiary or General Partner 17,012 19,924 ------------------------------------------ Total capital 131,393 422,581 ------------------------------------------ Total liabilities and capital $ 137,646 $ 443,842 ==========================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND STATEMENTS OF INCOME For the Three Months Ended March 31,
1998 1997 ----------------------------------- Revenues Lease revenue $ 20,000 $ 74,417 Interest and other income 3,674 2,487 Net gain on disposition of equipment 34,016 58,174 -------------------------------------- Total revenue 57,690 135,078 Expenses Depreciation 6,418 41,804 Management fees to affiliate -- 15,178 Repairs and maintenance 5,925 6,401 Insurance expense 219 906 General and administrative expenses to affiliates 6,387 17,917 Other general and administrative expenses 7,540 11,353 (Recovery of) provision for bad debts (4,405 ) 1,331 -------------------------------------- Total expenses 22,084 94,890 -------------------------------------- Net income $ 35,606 $ 40,188 ====================================== Allocation of net income Beneficiaries or limited partners $ 35,250 $ 39,786 Beneficiary or General Partner 356 402 -------------------------------------- Total $ 35,606 $ 40,188 ====================================== Net income per weighted-average unit outstanding - 24,285 units $ 1.45 $ 1.64 ====================================== Cash distributions $ -- $ 65,174 ====================================== Cash distributions per weighted-average unit outstanding $ -- $ 2.68 ====================================== Special cash distributions $ 326,794 $ -- ====================================== Special cash distributions per weighted-average unit outstanding $ 13.32 $ -- ====================================== Total cash distributions per weighted-average unit outstanding $ 13.32 $ 2.68 ======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND STATEMENTS OF CHANGES IN CAPITAL For the period from December 31, 1996 to March 31, 1998
Beneficiaries Beneficiary (formerly (formerly Limited General Partners) Partner) Total ----------------------------------------------------- Capital (deficit) as of December 31, 1996 $ 743,918 $ (100,521) $ 643,397 Net income 88,071 124,782 212,853 Cash distributions (65,057) (657) (65,714 ) Special distributions (364,275) (3,680) (367,955 ) -------------------------------------------------------------- Capital as of December 31, 1997 402,657 19,924 422,581 Net income 35,250 356 35,606 Special distributions (323,526) (3,268) (326,794 ) -------------------------------------------------------------- Capital as of March 31, 1998 $ 114,381 $ 17,012 $ 131,393 ==============================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND STATEMENTS OF CASH FLOWS For the Three Months Ended March 31,
1998 1997 --------------------------------- Operating activities Net income $ 35,606 $ 40,188 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 6,418 41,804 Net gain on disposition of equipment (34,016) (58,174) Changes in operating assets and liabilities Accounts receivable, net 14,483 19,370 Prepaid insurance 219 605 Accounts payable (9,949) (2,464) Due to affiliates (5,059) -- Net cash provided by operating activities 7,702 41,329 Investing activities Proceeds from disposition of equipment 54,156 76,319 Net cash provided by investing activities 54,156 76,319 Financing activities Cash distributions paid to beneficiaries (formerly limited partners) (323,526) (65,057) Cash distributions paid to Beneficiary (formerly General Partner) (3,268) (657) ---------------------------------------- Net cash used in financing activities (326,794) (65,714) ---------------------------------------- Net increase (decrease) in cash and cash equivalents (264,936) 51,934 Cash and cash equivalents at beginning of period 376,794 211,878 ---------------------------------------- Cash and cash equivalents at end of period $ 111,858 $ 263,812 ========================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 1. Liquidation of the Partnership With the disposal of the majority of the equipment portfolio, the Partnership's remaining assets were transferred into a liquidating trust on January 1, 1998. The sole Beneficiaries of the liquidating trust are the limited partners and the General Partner. The Trustees, as designated by the General Partner, are three officers of the General Partner. The amounts reflected as assets and liabilities of the Trust have not been adjusted to reflect liquidation values. The equipment portfolio that is actively being marketed for sale by the Trustees continues to be carried at the lower of depreciated cost or fair value less estimated cost of disposal. Although the Trustees estimate that there will be distributions to the Beneficiaries after final disposal of assets and settlement of liabilities, the amounts cannot be accurately determined prior to actual disposal of the equipment. Cash receipts (including proceeds from the sale of assets) in excess of expected obligations and reasonable reserves will be distributed to the Beneficiaries in the liquidating trust from time to time, and not less often than annually. Upon final liquidation, the liquidating trust will be dissolved. For tax purposes, the liquidating trust will continue to be treated as a partnership under Internal Revenue Regulation Section 301.7701-3(b)(1)(i). Partnership tax returns will be filed until all the liquidating trust assets are distributed. The Trustees have applied to the Securities and Exchange Commission (SEC) to terminate the Trust's obligation to file future reports on Form 10-Q and Form 10-K. If approved by the SEC, the Trustees will discontinue all future filings of these reports. 2. Opinion of Management In the opinion of the Trustees, the accompanying unaudited financial statements contain all adjustments necessary, consisting primarily of normal recurring accruals, to present fairly the Trust's financial position as of March 31, 1998 and December 31, 1997, the statements of income and cash flows for the three months ended March 31, 1998 and 1997, and the statements of changes in capital for the period from December 31, 1996 to March 31, 1998. Certain information and note 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 Annual Report on Form 10-K for the year ended December 31, 1997, on file at the Securities and Exchange Commission. 3. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows:
March 31, December 31, 1998 1997 ------------------------------------- Trailers $ 456,512 $ 715,860 Less accumulated depreciation (442,154 ) (674,944) ----------------------------------------- Net equipment $ 14,358 $ 40,916 =========================================
As of March 31, 1998 and December 31, 1997, all equipment was operating in PLM-affiliated short-term rental facilities. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 3. Equipment (continued) During the three months ended March 31, 1998, the Trust sold or disposed of trailers with an aggregate book value of $20,140 for proceeds of $54,156. During the three months ended March 31, 1997, the Partnership sold or disposed of a marine container and trailers with an aggregate book value of $18,145 for proceeds of $76,319. 4. Cash Distributions The Trustees paid special distributions of $13.32 per weighted-average unit during the first quarter of 1998. The Partnership paid cash distributions of $2.68 per weighted-average unit during the first quarter of 1997. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND BALANCE SHEETS
March 31, December 31, 1998 1997 ------------------------------------- Assets Equipment held for operating leases, at cost $ 195,077 $ 237,580 Less accumulated depreciation ( 189,121) (227,868) ------------------------------------------ Net equipment 5,956 9,712 Cash and cash equivalents 47,708 93,836 Accounts receivable, net of allowance for doubtful accounts of $22,075 in 1998 and in 1997 1,116 7,450 Prepaid insurance 191 284 ------------------------------------------ Total assets $ 54,971 $ 111,282 ========================================== Liabilities and capital Liabilities: Accounts payable $ 3,500 $ 9,720 Due to affiliates -- 3,637 Total liabilities 3,500 13,357 Capital: Beneficiaries or limited partners (17,460 units) 39,639 85,629 Beneficiary or General Partner 11,832 12,296 ----------------- ---------------- ---------- ---- Total capital 51,471 97,925 ------------------------------------------ Total liabilities and capital $ 54,971 $ 111,282 ==========================================
see accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND STATEMENTS OF OPERATIONS For the Three Months Ended March 31,
1998 1997 ----------------------------- Revenues Lease revenue $ 1,950 $ 20,242 Interest and other income 554 4,109 Net gain on disposition of equipment 3,765 31,354 --------------------------------- Total revenue 6,269 55,705 Expenses Depreciation 2,022 26,041 Management fees to affiliate -- 10,913 Repairs and maintenance 177 2,773 Insurance expense 93 716 General and administrative expenses to affiliates 1,680 11,207 Other general and administrative expenses 4,915 9,174 Total expenses 8,887 60,824 Net loss $ ( 2,618) $ (5,119) ================================= Allocation of net loss Beneficiaries or limited partners $ ( 2,592) $ (5,068) Beneficiary or General Partner (26) (51) --------------------------------- Total $ ( 2,618) $ (5,119) ================================= Net loss per weighted-average unit outstanding - 17,460 units $ (0.15) $ (0.29) ================================= Cash distributions $ -- $ 48,063 ================================= Cash distributions per weighted-average unit outstanding $ -- $ 2.73 ================================= Special distributions $ 43,836 $ 300,000 ================================= Special distributions per weighted-average unit outstanding $ 2.49 $ 17.01 ================================= Total distributions per weighted-average unit outstanding $ 2.49 $ 19.74 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND STATEMENTS OF CHANGES IN CAPITAL For the period from December 31, 1996 to March 31, 1998
Beneficiaries Beneficiary (formerly (formerly Limited General Partners) Partner) Total ----------------------------------------------------- Capital (deficit) as of December 31, 1996 $ 758,143 $ (69,985) $ 688,158 Net income (loss) (66,032 ) 88,407 22,375 Cash distributions (47,582 ) (481) (48,063 ) Special distributions (558,900 ) (5,645) (564,545 ) --------------------------------------------------------- Capital as of December 31, 1997 85,629 12,296 97,925 Net loss (2,592 ) (26) (2,618 ) Special distributions (43,398 ) (438) (43,836 ) --------------------------------------------------------- Capital as of March 31, 1998 $ 39,639 $ 11,832 $ 51,471 =========================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND STATEMENTS OF CASH FLOWS For the Three Months Ended March 31,
1998 1997 -------------------------------- Operating activities Net loss $ ( 2,618) $ (5,119) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 2,022 26,041 Net gain on disposition of equipment ( 3,765) (31,354) Changes in operating assets and liabilities: Accounts receivable, net 833 (3,067) Prepaid insurance 93 496 Accounts payable (6,220) (3,070) Due to affiliates (3,637) -- ------------------------------------- Net cash used in operating activities (13,292) (16,073) ------------------------------------- Investing activities Proceeds from disposition of equipment 11,000 51,000 Net cash provided by investing activities 11,000 51,000 Financing activities Cash distributions paid to beneficiaries (formerly limited partners) (43,398) (344,582) Cash distributions paid to Beneficiary (formerly General Partner) (438) (3,481) ------------------------------------- Net cash used in financing activities (43,836) (348,063) ------------------------------------- Net decrease in cash and cash equivalents (46,128) (313,136) Cash and cash equivalents at beginning of period 93,836 478,922 ------------------------------------- Cash and cash equivalents at end of period $ 47,708 $ 165,786 =====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 1. Liquidation of the Partnership With the disposal of the majority of the equipment portfolio, the Partnership's remaining assets were transferred into a liquidating trust on January 1, 1998. The sole Beneficiaries of the liquidating trust are the limited partners and the General Partner. The Trustees, as designated by the General Partner, are three officers of the General Partner. The amounts reflected as assets and liabilities of the Trust have not been adjusted to reflect liquidation values. The equipment portfolio that is actively being marketed for sale by the Trustees continues to be carried at the lower of depreciated cost or fair value less estimated cost of disposal. Although the Trustees estimate that there will be distributions to the Beneficiaries after final disposal of assets and settlement of liabilities, the amounts cannot be accurately determined prior to actual disposal of the equipment. Cash receipts (including proceeds from the sale of assets) in excess of expected obligations and reasonable reserves will be distributed to the Beneficiaries in the liquidating trust from time to time, and not less often than annually. Upon final liquidation, the liquidating trust will be dissolved. For tax purposes, the liquidating trust will continue to be treated as a partnership under Internal Revenue Regulation Section 301.7701-3(b)(1)(i). Partnership tax returns will be filed until all the liquidating trust assets are distributed. The Trustees have applied to the Securities and Exchange Commission (SEC) to terminate the Trust's obligation to file future reports on Form 10-Q and Form 10-K. If approved by the SEC, the Trustees will discontinue all future filings of these reports. 2. Opinion of Management In the opinion of the Trustees, the accompanying unaudited financial statements contain all adjustments necessary, consisting primarily of normal recurring accruals, to present fairly the Trust's financial position as of March 31, 1998 and December 31, 1997, the statements of operations and cash flows for the three months ended March 31, 1998 and 1997, and the statements of changes in capital for the period from December 31, 1996 to March 31, 1998. Certain information and note 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 Annual Report on Form 10-K for the year ended December 31, 1997, on file at the Securities and Exchange Commission. 3. Equipment Equipment held for operating leases is stated at cost. The components of owned equipment are as follows:
March 31, December 31, 1998 1997 ----------------------------------- Trailers $ 195,077 237,580 Less accumulated depreciation (189,121 ) (227,868) --------------------------------------- Net equipment $ 5,956 $ 9,712 =======================================
As of March 31, 1998 and December 31, 1997, all equipment was either on lease or operating in PLM affiliated short-term rental facilities. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 3. Equipment (continued) During the first quarter of 1998, the Trust repossessed a trailer, that had been sold for a gain of $3,432 in 1997, due to a collection problem. During the three months ended March 31, 1998, the Trust sold or disposed of trailers with a net book value of $3,803 for proceeds of $11,000. During the three months ended March 31, 1997, the Partnership sold or disposed of trailers with a net book value of $19,646 for proceeds of $51,000. 4. Cash Distributions The Trustees or General Partner paid special distributions of $2.49 and $17.01 per weighted-average unit during the first quarter of 1998 and 1997, respectively. The Partnership paid cash distributions of $2.73 per weighted-average unit during the first quarter of 1997. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND BALANCE SHEETS
March 31, December 31, 1998 1997 -------------------------------------- Assets Equipment held for operating leases, at cost $ 1,068,297 $ 1,527,504 Less accumulated depreciation (1,027,916) (1,449,772) -------------------------------------------- Net equipment 40,381 77,732 Cash and cash equivalents 178,455 104,309 Accounts receivable, net of allowance for doubtful accounts of $2,323 in 1998 and $8,393 in 1997 20,972 59,608 Prepaid insurance 374 560 -------------------------------------------- Total assets $ 240,182 $ 242,209 ============================================ Liabilities and capital Liabilities: Accounts payable $ 6,801 $ 10,921 Due to affiliates -- 3,523 Total liabilities 6,801 14,444 Capital: Beneficiaries or limited partners (16,914 units) 220,109 214,549 Beneficiary or General Partner 13,272 13,216 ---------------- ---------------- ----------- ----- Total capital 233,381 227,765 ------------------------------------------ Total liabilities and capital $ 240,182 $ 242,209 ==========================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND STATEMENTS OF INCOME For the Three Months Ended March 31,
1998 1997 ----------------------------- Revenues Lease revenue $ 27,074 $ 73,450 Interest and other income 1,862 2,629 Net gain on disposition of equipment 61,989 49,863 ---------------------------------- Total revenue 90,925 125,942 Expenses Depreciation 16,832 39,629 Management fees to affiliate -- 10,568 Repairs and maintenance 6,149 22,763 Insurance expense 186 1,003 General and administrative expenses to affiliates 7,584 27,531 Other general and administrative expenses 6,319 8,709 (Recovery of) provision for bad debts (6,070) 2,916 ---------------------------------- Total expenses 31,000 113,119 Net income $ 59,925 $ 12,823 ================================== Allocation of net income Beneficiaries or limited partners $ 59,326 $ 12,695 Beneficiary or General Partner 599 128 ---------------------------------- Total $ 59,925 $ 12,823 ================================== Net income per weighted-average unit outstanding (16,914 units) $ 3.51 $ 0.75 ================================== Cash distributions $ -- $ 57,017 ================================== Cash distributions per weighted-average unit outstanding $ -- $ 3.34 ================================== Special distributions $ 54,309 $ 100,000 ================================== Special distributions per weighted-average unit outstanding $ 3.18 $ 5.85 ================================== Total distributions per weighted-average unit outstanding $ 3.18 $ 9.19 ==================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND STATEMENTS OF CHANGES IN CAPITAL For the period from December 31, 1996 to March 31, 1998
Beneficiaries (formerly Beneficiary Limited (formerly Total Partners) General Partner) ------------------------------------------------------- Capital (deficit) as of December 31, 1996 $ 704,628 $ (68,097) $ 636,531 Net income 28,911 86,555 115,466 Cash distributions (56,447 ) (570) (57,017) Special distributions (462,543 ) (4,672) (467,215) ----------------------------------------------------------- Capital as of December 31, 1997 214,549 13,216 227,765 Net income 59,326 599 59,925 Special distributions (53,766 ) (543) (54,309) ----------------------------------------------------------- Capital as of March 31, 1998 $ 220,109 $ 13,272 $ 233,381 ===========================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND STATEMENTS OF CASH FLOWS For the Three Months Ended March 31,
1998 1997 --------------------------------- Operating activities Net income $ 59,925 $ 12,823 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 16,832 39,629 Net gain on disposition of equipment (61,989) (49,863) Change in operating assets and liabilities Accounts receivable, net 27,636 13,232 Prepaid insurance 186 640 Accounts payable (4,120) (5,549) Due to affiliates (3,523) -- ------------------------------------- Net cash provided by operating activities 34,947 10,912 ------------------------------------- Investing activities Proceeds from disposition of equipment 93,508 79,550 Cash provided by investing activities 93,508 79,550 ------------------------------------- Financing activities Cash distributions paid to beneficiaries (formerly limited partners) (53,766) (155,447) Cash distributions paid to Beneficiary (formerly General Partner) (543) (1,570) ------------------------------------- Net cash used in financing activities (54,309) (157,017) ------------------------------------- Net increase (decrease) in cash and cash equivalents 74,146 (66,555) Cash and cash equivalents at beginning of period 104,309 264,450 ------------------------------------- Cash and cash equivalents at end of period $ 178,455 $ 197,895 =====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 1. Liquidation of the Partnership With the disposal of the majority of the equipment portfolio, the Partnership's remaining assets were transferred into a liquidating trust on January 1, 1998. The sole Beneficiaries of the liquidating trust are the limited partners and the General Partner. The Trustees, as designated by the General Partner, are three officers of the General Partner. The amounts reflected as assets and liabilities of the Trust have not been adjusted to reflect liquidation values. The equipment portfolio that is actively being marketed for sale by the Trustees continues to be carried at the lower of depreciated cost or fair value less estimated cost of disposal. Although the Trustees estimate that there will be distributions to the Beneficiaries after final disposal of assets and settlement of liabilities, the amounts cannot be accurately determined prior to actual disposal of the equipment. Cash receipts (including proceeds from the sale of assets) in excess of expected obligations and reasonable reserves will be distributed to the Beneficiaries in the liquidating trust from time to time, and not less often than annually. Upon final liquidation, the liquidating trust will be dissolved. For tax purposes, the liquidating trust will continue to be treated as a partnership under Internal Revenue Regulation Section 301.7701-3(b)(1)(i). Partnership tax returns will be filed until all the liquidating trust assets are distributed. The Trustees have applied to the Securities and Exchange Commission (SEC) to terminate the Trust's obligation to file future reports on Form 10-Q and Form 10-K. If approved by the SEC, the Trustees will discontinue all future filings of these reports. 2. Opinion of Management In the opinion of the Trustees, the accompanying unaudited financial statements contain all adjustments necessary, consisting primarily of normal recurring accruals, to present fairly the Trust's financial position as of March 31, 1998 and December 31, 1997, the statements of income and cash flows for the three months ended March 31, 1998 and 1997, and the statements of changes in capital for the period from December 31, 1996 to March 31, 1998. Certain information and note 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 Annual Report on Form 10-K for the year ended December 31, 1997, on file at the Securities and Exchange Commission. Equipment Equipment held for operating leases is stated at cost. The components of owned equipment are as follows:
March 31, December 31, 1998 1997 ---------------------------------------- Trailers $ 1,068,297 $ 1,527,504 Less accumulated depreciation (1,027,916 ) (1,449,772) ---------------------------------------- Net equipment $ 40,381 $ 77,732 ========================================
All of the equipment was operating in PLM-affiliated short-term rental facilities as of March 31, 1998 and December 31, 1997. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 Equipment (continued) During the first quarter of 1998, the Trust repossessed two trailers, that had been sold for a gain of $6,969 in 1997, due to a collection problem. During the three months ended March 31, 1998, the Trust sold or disposed of trailers with a net book value of $24,550 for proceeds of $93,508. During the three months ended March 31, 1997, the Partnership sold or disposed of trailers with a net book value of $29,687 for proceeds of $79,550. 4. Cash Distributions The Trustees or General Partner paid special distributions of $3.18 and $5.85 per weighted-average unit during the first quarter of 1998 and 1997, respectively. The Partnership paid a cash distribution of $3.34 per weighted-average unit during the first quarter of 1997. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND BALANCE SHEETS
March 31, December 31, 1998 1997 -------------------------------------- Assets Equipment held for operating leases, at cost $ 316,403 $ 609,053 Less accumulated depreciation (299,187) (568,582) -------------------------------------------- Net equipment 17,216 40,471 Cash and cash equivalents 102,485 125,940 Accounts receivable, net of allowance for doubtful accounts of $32,220 in 1998 and in 1997 2,175 39,740 Prepaid insurance 1,320 1,413 -------------------------------------------- Total assets $ 123,196 $ 207,564 ============================================ Liabilities and capital Liabilities: Accounts payable $ 3,645 $ 17,342 Due to affiliates -- 1,985 Total liabilities 3,645 19,327 Capital: Beneficiaries or limited partners (9,529 units) 112,054 180,054 Beneficiary or General Partner 7,497 8,183 ------------------------------------------ Total capital 119,551 188,237 ------------------------------------------ Total liabilities and capital $ 123,196 $ 207,564 ==========================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND STATEMENTS OF INCOME For the Three Months Ended March 31,
1998 1997 ----------------------------- Revenues Lease revenue $ 9,757 $ 19,219 Interest and other income 1,563 837 Net gain on disposition of equipment 12,197 25,044 -------------------------------- Total revenue 23,517 45,100 Expenses Depreciation 6,151 19,489 Management fees to affiliate -- 5,956 Repairs and maintenance 2,338 2,716 Insurance expense 93 435 General and administrative expenses to affiliates 2,967 6,904 Other general and administrative expenses 4,714 6,573 Provision for bad debts -- 67 Total expenses 16,263 42,140 -------------------------------- Net income $ 7,254 $ 2,960 ================================ Allocation of net income Beneficiaries or limited partners $ 7,181 $ 2,930 Beneficiary or General Partner 73 30 ------------------------------ Total $ 7,254 $ 2,960 ================================ Net income per weighted-average unit outstanding (9,529 units) $ 0.75 $ 0.31 ================================ Cash distributions $ -- $ 18,549 ================================ Cash distributions per weighted-average unit outstanding $ -- $ 1.93 ================================ Special distributions $ 75,940 $ -- ================================ Special distributions per weighted-average unit outstanding $ 7.89 $ -- ================================ Total distributions per weighted-average unit outstanding $ 7.89 $ 1.93 ================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND STATEMENTS OF CHANGES IN CAPITAL For the period from December 31, 1996 to March 31, 1998
Beneficiaries Beneficiary Limited (formerly Partners) General Partner) Total ------------------------------------------------------- Capital (deficit) as of December 31, 1996 $ 305,760 $ (39,161) $ 266,599 Net income 83,235 49,454 132,689 Cash distributions (18,364 ) (185) (18,549) Special distributions (190,577 ) (1,925) (192,502) ----------------------------------------------------------- Capital as of December 31, 1997 180,054 8,183 188,237 Net income 7,181 73 7,254 Special distributions (75,181 ) (759) (75,940) ----------------------------------------------------------- Capital as of March 31, 1998 $ 112,054 $ 7,497 $ 119,551 ===========================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND STATEMENTS OF CASH FLOWS For the Three Months Ended March 31,
1998 1997 -------------------------------- Operating activities Net income $ 7,254 $ 2,960 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 6,151 19,489 Net gain on disposition of equipment (12,197) (25,044) Changes in operating assets and liabilities Accounts receivable, net 37,565 11,238 Prepaid insurance 93 281 Accounts payable (13,697) (2,920) Due to affiliate (1,985) -- ------------------------------------- Net cash provided by operating activities 23,184 6,004 ------------------------------------- Investing activities Proceeds from disposition of equipment 29,301 43,219 ------------------------------------- Net cash provided by investing activities 29,301 43,219 ------------------------------------- Financing activities Cash distributions paid to beneficiaries (formerly limited partners) (75,181) (18,364) Cash distributions paid to Beneficiary (formerly General Partner) (759) (185) ------------------------------------- Net cash used in financing activities (75,940) (18,549) ------------------------------------- Net increase (decrease) in cash and cash equivalents (23,455) 30,674 Cash and cash equivalents at beginning of period 125,940 77,140 ------------------------------------- Cash and cash equivalents at end of period $ 102,485 $ 107,814 =====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 1. Liquidation of Partnership With the disposal of the majority of the equipment portfolio, the Partnership's remaining assets were transferred into a liquidating trust on January 1, 1998. The sole Beneficiaries of the liquidating trust are the limited partners and the General Partner. The Trustees, as designated by the General Partner, are three officers of the General Partner. The amounts reflected as assets and liabilities of the Trust have not been adjusted to reflect liquidation values. The equipment portfolio that is actively being marketed for sale by the Trustees continues to be carried at the lower of depreciated cost or fair value less estimated cost of disposal. Although the Trustees estimate that there will be distributions to the Beneficiaries after final disposal of assets and settlement of liabilities, the amounts cannot be accurately determined prior to actual disposal of the equipment. Cash receipts (including proceeds from the sale of assets) in excess of expected obligations and reasonable reserves will be distributed to the Beneficiaries in the liquidating trust from time to time, and not less often than annually. Upon final liquidation, the liquidating trust will be dissolved. For tax purposes, the liquidating trust will continue to be treated as a partnership under Internal Revenue Regulation Section 301.7701-3(b)(1)(i). Partnership tax returns will be filed until all the liquidating trust assets are distributed. The Trustees have applied to the Securities and Exchange Commission (SEC) to terminate the Trust's obligation to file future reports on Form 10-Q and Form 10-K. If approved by the SEC, the Trustees will discontinue all future filings of these reports. 2. Opinion of Management In the opinion of the Trustees, the accompanying unaudited financial statements contain all adjustments necessary, consisting primarily of normal recurring accruals, to present fairly the Trust's financial position as of March 31, 1998 and December 31, 1997, the statements of income and cash flows for the three months ended March 31, 1998 and 1997, and the statements of changes in capital for the period from December 31, 1996 to March 31, 1998. Certain information and note 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 Annual Report on Form 10-K for the year ended December 31, 1997, on file at the Securities and Exchange Commission. 3. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows:
March 31, December 31, 1998 1997 ------------------------------------- Trailers $ 316,403 $ 609,053 Less accumulated depreciation (299,187 ) (568,582) ----------------------------------------- Net equipment $ 17,216 $ 40,471 =========================================
All equipment owned by the Trust or Partnership was operating in PLM-affiliated short-term rental facilities as of March 31, 1998 and December 31, 1997. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND NOTES TO FINANCIAL STATEMENTS March 31, 1998 Equipment (continued) During the three months ended March 31, 1998, the Trust sold or disposed of trailers with an aggregate net book value of $17,104 for proceeds of $29,301. During the three months ended March 31, 1997, the Partnership sold or disposed of marine containers and trailers with an aggregate net book value of $18,175 for proceeds of $43,219. 4. Cash Distributions The Trustees paid special distributions of $7.89 per weighted-average unit during the first quarter of 1998. The General Partner paid cash distributions of $1.93 per weighted-average unit during the first quarter of 1997. 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 March 31, 1998 and 1997 TEP IXA (A) Owned Equipment Operations Revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expense) on owned equipment decreased for the quarter ended March 31, 1998, when compared to the same period of 1997. The following table presents revenues less direct expenses by owned equipment type:
For the Three Months Ended March 31, 1998 1997 --------------------------------- Trailers $ 14,075 $ 49,290 Marine containers -- 18,090
Trailers: Trailer revenues and direct expenses were $20,000 and $5,925, respectively, for the quarter ended March 31, 1998, compared to $56,097 and $6,807, respectively, during the same period of 1997. The number of trailers owned by the Trust declined over the twelve months due to disposition of trailers. The result of this declining fleet was a decrease in trailer net contribution. Marine containers: Marine container revenues and direct expenses were zero for the quarter ended March 31, 1998, compared to $18,321 and $231, respectively, during the same period of 1997. The decrease in marine container net contribution resulted from the disposition of the remaining marine containers during 1997. (B) Indirect Expenses Related to Owned Equipment Total indirect expenses of $16,159 for the quarter ended March 31, 1998, decreased from $87,583 for the same period of 1997. Significant variances are explained as follows: (i) a $35,386 decrease in depreciation expense reflecting asset sales or dispositions during 1998 and during 1997. (ii) a $15,343 decrease in general and administrative expenses reflects decreased accounting and data processing costs, and lower administrative costs related to short-term rental facilities due to the decreased volume of trailers in these facilities. (iii) a $15,178 decrease in management fees to affiliates due to the transfer of the remaining assets into a liquidating trust. The Trustees are not entitled to a management fee. (iv) a $5,736 decrease in bad debt expense primarily reflecting the Partnership's recovery of certain receivable balances previously reserved for as bad debts. (C) Net Gain on Disposition of Equipment For the quarter ended March 31, 1998, the Partnership realized a gain of $34,016 on the sale of trailers. In the same period in 1997, the Partnership realized a gain of $58,174 on the sale or disposition of marine container and trailers. (D) Net Income As a result of the foregoing, the Trust's net income of $35,606 in the first quarter of 1998 decreased from $40,188 in the same period in 1997. The Trust's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Trust is subject to many factors, and the Trust's performance in the first quarter of 1998, is not necessarily indicative of future periods. In the first quarter of 1998, the Trust made a special distribution of $323,526 to the beneficiaries, or approximately $13.32 per weighted-average 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 for the quarter ended March 31, 1998, when compared to the same period of 1997. The following table presents revenues less direct expenses by owned equipment type:
For the Three Months Ended March 31, 1998 1997 ---------------------------------- Trailers $ 1,773 $ 10,184 Marine containers -- 4,420 Railcar equipment -- 2,431
Trailers: Trailer revenues and direct expenses were $1,950 and $177, respectively, for the quarter ended March 31, 1998, compared to $13,206 and $3,022, respectively, during the same period of 1997. The number of trailers owned by the Trust declined over the past twelve months due to disposition of trailers. The result of this declining fleet was a decrease in trailer net contribution. Marine containers: Marine container revenues and direct expenses were zero for the quarter ended March 31, 1998, compared to $4,486 and $66, respectively, during the same period of 1997. The decrease in marine container net contribution resulted from the disposition of the remaining marine containers during 1997. Railcar equipment: Railcar revenues and direct expenses were zero for the quarter ended March 31, 1998, compared to $2,550 and $119, respectively, during the same period of 1997. The decrease in contribution was due to the sale of the remaining railcars during 1997. (B) Indirect Expenses Related to Owned Equipment Total indirect expenses of $8,710 for the quarter ended March 31, 1998, decreased from $57,617 for the same period of 1997. Significant variances are explained as follows: (i) a $24,019 decrease in depreciation expense reflecting asset sales or dispositions during 1998 and 1997. (ii) a $13,786 decrease in general and administrative expenses reflects the decreased accounting and data processing costs, and lower administrative costs related to short-term rental facilities due to the decreased volume of trailers in these facilities. (iii) a $10,913 decrease in management fees to affiliates due to the transfer of the remaining assets into a liquidating Trust. The Trustees are not entitled to a management fee. (C) Net Gain on Disposition of Equipment For the quarter ended March 31, 1998, the Trust realized a gain of $3,765 on the disposal of trailers compared to the same period of 1997, where the Partnership realized a gain of $31,354 on the disposal of trailers. (D) Net Loss As a result of the foregoing, the Trust had a net loss of $2,618 for the quarter ended March 31, 1998, compared to a net loss of $5,119 for the same period in 1997. The Trust's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Trust is subject to many factors, and the Trust's performance for the quarter ended March 31, 1998, is not necessarily indicative of future periods. For the quarter ended March 31, 1998, the Trust distributed a special distribution $43,398 to the beneficiaries, or approximately $2.49 per weighted-average 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 for the quarter ended March 31, 1998 when compared to the same period of 1997. The following table presents revenues less direct expenses by owned equipment type:
For the Three Months Ended March 31, 1998 1997 ------------------------------------- Trailers $ 20,925 $ 51,728 Marine containers -- 804 Railcar equipment -- (2,590 )
Trailers: Trailer revenues and direct expenses were $27,074 and $6,149, respectively, for the quarter ended March 31, 1998, compared to $75,172 and $23,444, respectively, during the same period of 1997. The number of trailers declined over the past twelve months due to the disposition of trailers. The result of this declining fleet was a decrease in trailer net contribution. Marine containers: Marine container revenues and direct expenses were zero for the quarter ended March 31, 1998, compared to $828 and $24, respectively, during the same period of 1997. The decrease in marine container net contribution resulted from the disposition of the Trust's remaining marine containers during 1997. Railcar equipment: Railcar revenues and direct expenses were zero for the quarter ended March 31, 1998, compared to a credit of $2,550 and $40, respectively, during the same period of 1997. The increase in contribution was due to a credit given back to a former lessee in the first quarter of 1997. No similar credit was given in the first quarter of 1998. (B) Indirect Expenses Related to Owned Equipment Total indirect expenses of $24,851 for the quarter ended March 31, 1998, decreased from $89,611 for the same period of 1997. Significant variances are explained as follows: (i) a $22,797 decrease in depreciation expense reflecting asset sales during the first quarter of 1998 and during 1997. (ii) a $22,337 decrease in general and administrative expenses due to lower accounting costs and administrative costs due to sale of equipment and decreased volume of trailers in the short-term rental facilities. (iii) a $10,568 decrease in management fee to affiliate due to the transfer of the remaining assets into a liquidating trust. The Trustees are not entitled to a management fee. (iv) a $8,986 decrease in bad debt expense primarily reflecting the Partnership's recovery of certain receivable balances previously reserved for as bad debts. (C) Net Gain on Disposition of Equipment For the quarter ended March 31, 1998, the Trust realized a gain of $61,989 on the disposition of trailers, compared to the same period in 1997, when the Partnership realized a gain of $49,863 on the disposition of trailers. (D) Net Income As a result of the foregoing, the Trust's net income increased to $59,925 for the quarter ended March 31, 1998, from $12,823 in the same period in 1997. The Trust's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Trust is subject to many factors, and the Trust's performance for the quarter ended March 31, 1998, is not necessarily indicative of future periods. For the quarter ended March 31, 1998, the Trust distributed a special distribution of $53,766 to the beneficiaries, or approximately $3.18 per weighted-average unit. TEP IXD (A) Owned Equipment Operations Revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expenses) on owned equipment decreased for the quarter ended March 31, 1998 when compared to the same period of 1997. The following table presents revenues less direct expenses by owned equipment type:
For the Three Months Ended March 31, 1998 1997 ------------------------------------- Trailers $ 7,419 $ 8,603 Marine containers -- 7,579
Trailers: Trailer revenues and direct expenses were $9,757 and $2,338, respectively, for the quarter ended March 31, 1998, compared to $11,583 and $2,980, respectively, during the same period of 1997. The number of trailers declined over the past twelve months due to the disposition of trailers. The result of this declining fleet was a decrease in trailer net contribution. Marine containers: Marine container revenues and direct expenses were zero for the quarter ended March 31, 1998, compared to $7,636 and $57, respectively, during the same period of 1997. The decrease in marine container net contribution resulted from the disposition of the remaining marine containers during 1997. (B) Indirect Expenses Related to Owned Equipment Total indirect expenses of $13,925 for the quarter ended March 31, 1998, decreased from $39,103 for the same period of 1997. Significant variances are explained as follows: (i) a $13,338 decrease in depreciation expense reflecting asset sales during 1998 and 1997. (ii) a $5,956 decrease in management fees to affiliates due to the transfer of the remaining assets into a liquidating trust. The Trustees are not entitled to a management fee. (iii) a $5,796 decrease in general and administrative expenses due to lower accounting costs and administrative costs due to sale of equipment and decreased volume of trailers in the short-term rental facilities. (C) Net Gain on Disposition of Equipment For the quarter ended March 31, 1998, the Trust realized a gain of $12,197 on the disposal of trailers, as compared to a gain of $25,044 on the disposal of marine containers and trailers for the quarter ended March 31, 1997. (D) Net Income As a result of the foregoing, the Trust's net income of $7,254 in the first quarter 1998, compared to the net income of $2,960 in the same period in 1997. The Trust's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Trust is subject to many factors, and the Trust's performance in the first quarter of 1998, is not necessarily indicative of future periods. In the first quarter of 1998, the Trustees made a special distribution $75,181 to the beneficiaries, or approximately $7.89 per weighted-average unit. (II) ASSET SALES As discussed in Note 1 to each of the accompany financial statements and (V) below, the General Partner is actively marketing the remaining equipment for sale. (III) YEAR 2000 COMPLIANCE The Trustees are currently addressing the Year 2000 computer software issue and are creating a timetable for carrying out any program modifications that may be required. The Trustees do not anticipate that the cost of these modifications allocable to the Partnerships' will be material. (IV) ACCOUNTING PRONOUNCEMENTS In June 1997, the Financial Accounting Standards Board issued two new statements: SFAS No. 130, "Reporting Comprehensive Income," which requires enterprises to report, by major component and in total, all changes in equity from nonowner sources; and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information," which establishes annual and interim reporting standards for a public company's operating segments and related disclosures about its products, services, geographic areas, and major customers. Both statements are effective for the Partnership's fiscal year ended December 31, 1998. The effect of adoption of these statements will be limited to the form and content of the Partnership's disclosures and will not impact the Partnership's results of operations, cash flow, or financial position. (V) OUTLOOK FOR THE FUTURE With the majority of the equipment portfolio now liquidated, the Partnerships' remaining assets were transferred into a liquidating trust as of January 1, 1998 (see Note 1) to each of the accompanying financial statements. Any excess proceeds over expected obligations will be distributed to the Beneficiaries in the liquidating trust. (VI) FORWARD-LOOKING INFORMATION Except for historical information contained herein, the discussion in this Form 10-Q contains forward-looking statements that involve risks and uncertainties, such as statements of the Partnerships' plans, objectives, expectations, and intentions. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. The Partnerships' actual results could differ materially from those discussed here. 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 Date: May 14, 1998 By: /s/ Stephen M. Bess -------------------- Stephen M. Bess Trustee EX-27 2
5 3-MOS DEC-31-1998 MAR-31-1998 178,455 0 23,295 2,323 0 0 1,068,297 1,027,916 240,182 0 0 0 0 0 233,381 240,182 0 90,925 0 0 37,070 (6,070) 0 59,925 0 59,925 0 0 0 59,925 3.51 3.51
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