-----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, L7WJX7dJKLWvdGORukimhDgKqWiy3D/cvreXSjrN4jGCTaFmEvypU7mH3xQjfcd8 01S+dwiQb2vjNpyvb8O5QA== 0000778794-95-000003.txt : 19951122 0000778794-95-000003.hdr.sgml : 19951122 ACCESSION NUMBER: 0000778794-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND CENTRAL INDEX KEY: 0000778794 STANDARD INDUSTRIAL CLASSIFICATION: 7359 IRS NUMBER: 942992021 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16632 FILM NUMBER: 95589794 BUSINESS ADDRESS: STREET 1: ONE MARKET PLZ STE 900 STREET 2: STEUART STREET TOWER 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, 1995. [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 33-657 ----------------------- PLM Transportation Equipment Partners IXD 1986 Income Fund (Exact name of registrant as specified in its charter) California 94-2992021 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Market, Steuart Street Tower Suite 900, San Francisco, CA 94105-1301 (Address of principal (Zip code) executive offices) Registrant's telephone number, including area code (415) 974-1399 ----------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ______ PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
September 30, December 31, 1995 1994 ---------------------------------------- Equipment held for operating leases, at cost $ 4,253,932 $ 7,462,921 Less accumulated depreciation (3,523,500) (5,944,395) ---------------------------------------- Net equipment 730,432 1,518,526 Cash and cash equivalents 218,743 298,718 Accounts receivable, net of allowance for doubtful accounts of $121,907 in 1995 and $121,925 in 1994 38,926 34,620 Net investment in sales-type lease 1,047,095 -- Due from affiliates 2,941 -- Prepaid insurance 445 3,623 ---------------------------------------- Total assets $ 2,038,582 $ 1,855,487 ======================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ -- $ 2,732 Accounts payable 26,043 4,112 Prepaid deposits 22,677 23,574 ---------------------------------------- Total liabilities 48,720 30,418 Partners' capital (deficit): Limited Partners (24,285 units) 2,076,977 1,913,772 General Partner (87,115) (88,703) ---------------------------------------- Total partners' capital 1,989,862 1,825,069 ---------------------------------------- Total liabilities and partners' capital $ 2,038,582 $ 1,855,487 ========================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended September 30, September 30, 1995 1994 1995 1994 ---------------------------------------------------------------- Revenues: Lease revenue $ 151,828 $ 235,924 $ 392,052 $ 504,233 Interest and other income 16,264 2,495 23,359 5,931 Gain (loss) on disposition of equipment 9,857 45,179 555,197 40,496 ---------------------------------------------------------------- Total revenues 177,949 283,598 970,608 550,660 Expenses: Depreciation 55,518 109,508 257,018 331,171 Management fees to affiliate 15,178 15,178 45,534 45,788 Repairs and maintenance 22,951 17,906 128,770 84,690 Bad debt expense -- 78,204 -- 103,615 General and administrative expenses to affiliates 28,800 30,687 89,524 74,393 Other general and administrative expenses 22,753 11,924 61,565 57,460 ---------------------------------------------------------------- Total expenses 145,200 263,407 582,411 697,117 ---------------------------------------------------------------- Net income (loss) $ 32,749 $ 20,191 $ 388,197 $ (146,457) ================================================================ Partners' share of net income (loss) Limited Partners - 99% $ 32,422 $ 19,989 $ 384,315 $ (144,992) General Partner - 1% 327 202 3,882 (1,465) -------------------------------------------------------------- Total $ 32,749 $ 20,191 $ 388,197 $ (146,457) ============================================================== Net income (loss) per Limited Partnership Unit - 24,285 units $ 1.34 $ 0.82 $ 15.83 $ (5.97) ============================================================== Cash distributions $ 74,464 $ 60,262 $ 223,404 $ 301,305 ============================================================== Cash distributions per Limited Partnership Unit $ 3.04 $ 2.46 $ 9.11 $ 12.28 ==============================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to September 30, 1995 .
Limited General Partners Partners Total ----------------------------------------------------- Partners' capital (deficit) at December 31, 1993 $ 2,539,823 $ (82,379) $ 2,457,444 Net loss (131,481) (1,328) (132,809) Cash distributions (494,570) (4,996) (499,566) ----------------------------------------------------- Partners' capital (deficit) at December 31, 1994 1,913,772 (88,703) 1,825,069 Net income 384,315 3,882 388,197 Cash distributions (221,110) (2,294) (223,404) ----------------------------------------------------- Partners' capital (deficit) at September 30, 1995 $ 2,076,977 $ (87,115) $ 1,989,862 =====================================================
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, 1995 1994 --------------------------------- Operating activities: Net income (loss) $ 388,197 $ (146,457) Adjustments to reconcile net income (loss) to net cash provided by operating activities: (Gain) loss on disposition of equipment (555,197) (40,496) Depreciation 257,018 331,171 Changes in operating assets and liabilities Accounts receivable, net (4,306) 50,883 Due to/from affiliates (5,673) 9,079 Prepaid insurance 3,178 2,752 Accounts payable (28,068) (63,569) Prepaid deposits (897) 2,265 --------------------------------- Net cash provided by operating activities 54,252 145,628 --------------------------------- Investing activities: Proceeds from disposition of equipment 90,053 198,391 Payments for purchase of capital improvements (876) -- --------------------------------- Net cash provided by investing activities 89,177 198,391 --------------------------------- Cash flows used in financing activities: Cash distributions paid to partners (223,404) (301,305) --------------------------------- Cash and cash equivalents: Net decrease in cash and cash equivalents (79,975) 42,714 Cash and cash equivalents at beginning of period 298,718 335,234 --------------------------------- Cash and cash equivalents at end of period $ 218,743 $ 377,948 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1995, the statements of operations for the three and nine months ended September 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to September 30, 1995, and the statements of cash flows for the nine months ended September 30, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows:
September 30, December 31, 1995 1994 ------------------------------------- Rail equipment $ 783,870 $ 783,870 Marine containers 1,432,402 1,526,759 Commuter aircraft -- 3,076,382 Trailers 2,037,660 2,075,910 ------------------------------------- 4,253,932 7,462,921 Less accumulated depreciation (3,523,500) (5,944,395) ------------------------------------- Net equipment $ 730,432 $ 1,518,526 =====================================
All equipment was either on lease or operating in PLM affiliated short-term rental facilities as of September 30, 1995. With the exception of the commuter aircraft, all equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of December 31, 1994. The carrying value of the off-lease equipment was $595,620 at December 31, 1994. During the nine months ended September 30, 1995, the Partnership sold or disposed of one trailer and seven marine containers. Additionally, the Partnership entered into a sales-type lease related to a commuter aircraft with a carrying value of $505,450 for a sales price equal to the present value of the future lease payments ($1,090,000) less a $50,000 reserve for future costs of sale. Gross lease payments of $234,000 will be received over a one year period, commencing in September 1995, with an additional balloon payment of $919,012 due at the end of the lease term. The total net book value for these disposed or sold equipment was $532,835 with a total sales price of $1,137,148. During the nine months ended September 30, 1994, the Partnership sold or disposed of nine trailers, one yardster, and two marine containers with an aggregate book value of $157,895 for proceeds of $198,391. 3. Investment in Sales-type Lease On May 30, 1995, the Partnership entered into a sales-type lease for the purpose of selling a commuter aircraft. The lease is structured with a one year term commencing June 1995. The lessee will make monthly payments of $19,500. Gross lease payments of $234,000 will be received over a one year period, commencing in June 1995, with an additional balloon payment of $919,012 due at the end of the lease term. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS
ASSETS September 30, December 31, 1995 1994 -------------------------------------- Equipment held for operating leases, at cost $ 4,479,033 $ 5,309,856 Less accumulated depreciation (3,684,805) (4,180,140) -------------------------------------- Net equipment 794,228 1,129,716 Cash and cash equivalents 368,820 492,060 Accounts receivable, net of allowance for doubtful accounts of $41,297 in 1995 and $17,600 in 1994 30,738 66,451 Prepaid insurance 310 2,960 -------------------------------------- Total assets $ 1,194,096 $ 1,691,187 ====================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 3,638 $ 6,063 Accounts payable and other liabilities 9,813 11,411 Prepaid deposits 1,005 16,384 -------------------------------------- Total liabilities 14,456 33,858 Partners' capital (deficit): Limited Partners (17,460 units) 1,244,710 1,717,622 General Partner (65,070) (60,293) --------------- --------------- Total partners' capital 1,179,640 1,657,329 -------------------------------------- Total liabilities and partners' capital $ 1,194,096 $ 1,691,187 ======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME
Three Months Ended Nine Months Ended September 30, September 30, 1995 1994 1995 1994 ---------------------------------------------------------------- Revenues: Lease revenue $ 132,659 $ 233,639 $ 393,303 $ 626,667 Interest and other income 5,516 4,828 16,888 10,798 Gain (loss) on disposition of equipment 27,862 1,959 100,416 75,781 ---------------------------------------------------------------- Total revenues 166,037 240,426 510,607 713,246 Expenses: Depreciation 61,641 89,062 199,172 290,005 Management fees to affiliate 10,913 18,703 32,738 44,633 Repairs and maintenance 24,313 26,958 51,170 80,231 General and administrative expenses to affiliates 19,573 24,748 72,429 62,969 Other general and administrative expenses 15,965 20,224 60,363 59,719 --------------------------------------------------------------- -- Total expenses 132,405 179,695 415,872 537,557 ---------------------------------------------------------------- Net income $ 33,632 $ 60,731 $ 94,735 $ 175,689 ================================================================ Partners' share of net income Limited Partners - 99% $ 33,296 $ 60,124 $ 93,788 $ 173,932 General Partner - 1% 336 607 947 1,757 ---------------------------------------------------------------- Total $ 33,632 $ 60,731 $ 94,735 $ 175,689 ================================================================ Net income per Limited Partnership Unit - 17,460 units $ 1.91 $ 3.44 $ 5.37 $ 9.96 ================================================================ Cash distributions $ 202,999 $ 117,222 $ 572,424 $ 548,966 ================================================================ Cash distributions per Limited Partnership Unit $ 11.51 $ 6.65 $ 32.46 $ 31.13 ================================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to September 30, 1995
Limited General Partners Partners Total ----------------------------------------------------- Partners' capital (deficit) at December 31, 1993 $ 2,294,154 $ (54,470) $ 2,239,684 Net income 276,677 2,795 279,472 Cash distributions (853,209) (8,618) (861,827) ----------------------------------------------------- Partners' capital (deficit) at December 31, 1994 1,717,622 (60,293) 1,657,329 Net income 93,788 947 94,735 Cash distributions (566,700) (5,724) (572,424) ----------------------------------------------------- Partners' capital (deficit) at September 30, 1995 $ 1,244,710 $ (65,070) $ 1,179,640 =====================================================
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, 1995 1994 --------------------------------- Operating activities: Net income $ 94,735 $ 175,689 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (100,416) (75,781) Depreciation 199,172 290,005 Changes in operating assets and liabilities: Accounts receivable, net 35,713 9,632 Prepaid insurance 2,650 2,241 Due to affiliates (2,425) 10,589 Accounts payable (1,598) 7,591 Prepaid deposits (15,379) 535 --------------------------------- Net cash provided by operating activities 212,452 420,501 --------------------------------- Investing activities: Proceeds from disposition of equipment 241,627 306,316 Payments for purchase of capital improvements (4,895) -- --------------------------------- Net cash provided by investing activities 236,732 306,316 Cash flows used in financing activities: Cash distributions paid to partners (572,424) (548,966) --------------------------------- Cash and cash equivalents: Net decrease in cash and cash equivalents (123,240) 177,854 Cash and cash equivalents at beginning of period 492,060 455,659 --------------------------------- Cash and cash equivalents at end of period $ 368,820 $ 633,513 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1995, the statements of income for the three and nine months ended September 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to September 30, 1995, and the statements of cash flows for the nine months ended September 30, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Equipment Equipment held for operating leases is stated at cost. The components of equipment at September 30, 1995, and December 31, 1994, are as follows: September 30, December 31, 1995 1994 --------------------------------- Rail equipment $ 867,300 $ 867,300 Marine containers 413,633 483,606 Aircraft 1,492,368 1,492,368 Trailers and tractors 1,705,732 2,466,582 --------------------------------- 4,479,033 5,309,856 Less accumulated depreciation (3,684,805) (4,180,140) --------------------------------- Net equipment $ 794,228 $ 1,129,716 ================================= With the exception of a sidelift, all equipment was either on lease or operating in PLM affiliated short-term rental facilities as of September 30, 1995. With the exception of 19 trailers, all equipment was on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1994. The carrying value of the off-lease equipment was $79,608 and $152,349 at September 30, 1995 and December 31, 1994, respectively. 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. During the nine months ended September 30, 1994, the Partnership sold or disposed of eight tractors, five trailers, one Letro Porter, and three marine container with an aggregate net book value of $230,538 for proceeds of $306,319. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS
ASSETS September 30, December 31, 1995 1994 ---------------------------------------- Equipment held for operating leases, at cost $ 4,920,653 $ 5,082,353 Less accumulated depreciation (4,052,266) (3,980,922) ---------------------------------------- 868,387 1,101,431 Equipment held for sale -- 273,785 ---------------------------------------- Net equipment 868,387 1,375,216 Cash and cash equivalents 281,267 312,230 Restricted cash 6,600 6,600 Accounts receivable, net of allowance for doubtful accounts of $31,571 in 1995 and $31,642 in 1994 60,933 106,868 Due from affiliates 4,727 20,035 Prepaid insurance and other assets 21,925 28,583 ---------------------------------------- Total assets $ 1,243,839 $ 1,849,532 ======================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accounts payable $ 10,276 $ 8,178 Prepaid deposits and reserves 18,604 48,612 ---------------------------------------- Total liabilities 28,880 56,790 Partners' capital (deficit): Limited Partners (16,914 units) 1,277,271 1,849,276 General Partner (62,312) (56,534) --------------- --------------- Total partners' capital 1,214,959 1,792,742 ---------------------------------------- Total liabilities and partners' capital $ 1,243,839 $ 1,849,532 ========================================
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, 1995 1994 1995 1994 ---------------------------------------------------------------- Revenues: Lease revenue $ 141,042 $ 242,314 $ 503,101 $ 711,109 Interest and other income 4,070 2,905 18,046 6,032 Gain on disposition of equipment 424 -- 234,869 486 ---------------------------------------------------------------- Total revenues 145,536 245,219 756,016 717,627 Expenses: Depreciation 67,502 80,364 211,449 243,463 Management fees to affiliate 10,568 15,965 34,785 45,358 Repairs and maintenance 32,263 51,132 119,546 109,272 General and administrative expenses to affiliates 34,618 47,413 126,011 139,270 Other general and administrative expenses 11,401 5,466 26,773 40,979 Bad debt expense 7,670 9,729 7,041 28,896 ---------------------------------------------------------------- Total expenses 164,022 210,069 525,605 607,238 ---------------------------------------------------------------- Net income (loss) $ (18,486) $ 35,150 $ 230,411 $ 110,389 ================================================================ Partners' share of net income (loss): Limited Partners - 99% $ (18,301) $ 34,798 $ 228,107 $ 109,285 General Partner - 1% (185) 352 2,304 1,104 ---------------------------------------------------------------- Total $ (18,486) $ 35,150 $ 230,411 $ 110,389 ================================================================ Net income (loss) per Limited Partnership Unit (16,914 units) $ (1.08) $ 2.06 $ 13.48 $ 6.46 ================================================================ Cash distributions $ 98,772 $ 94,521 $ 808,194 $ 283,562 ================================================================ Cash distributions per Limited Partnership Unit $ 5.78 $ 5.53 $ 47.30 $ 16.60 ================================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to September 30, 1995
Limited General Partners Partners Total ------------------------------------------------------- Partners' capital (deficit) at December 31, 1993 $ 2,080,643 $ (54,197) $ 2,026,446 Net income 153,332 1,549 154,881 Cash distributions (384,699) (3,886) (388,585) ------------------------------------------------------- Partners' capital (deficit) at December 31, 1994 1,849,276 (56,534) 1,792,742 Net income 228,107 2,304 230,411 Cash distributions (800,112) (8,082) (808,194) ------------------------------------------------------- Partners' capital (deficit) at September 30, 1995 $ 1,277,271 $ (62,312) $ 1,214,959 =======================================================
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, 1995 1994 --------------------------------- Operating activities: Net income $ 230,411 $ 110,389 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (234,869) (486) Depreciation 211,449 243,463 Change in operating assets and liabilities Restricted cash -- (19,151) Accounts receivable, net 45,935 30,574 Due from affiliates 15,308 8,904 Prepaid deposits and reserves (30,008) 26,439 Prepaid expenses and other assets 3,439 2,240 Accounts payable and other liabilities 2,098 (394) --------------------------------- Net cash provided by operating activities 243,763 401,978 --------------------------------- Investing activities: Proceeds from disposition of equipment 532,486 31,000 Payments for purchase of capital improvements (2,237) (3,925) Payments received on finance leases 3,219 3,339 --------------------------------- Net cash provided by investing activities 533,468 30,414 --------------------------------- Cash flows used in financing activities: Cash distributions paid to partners (808,194) (283,562) --------------------------------- Cash and cash equivalents: Net (decrease) increase in cash and cash equivalents (30,963) 148,830 Cash and cash equivalents at beginning of period 312,230 131,540 --------------------------------- Cash and cash equivalents at end of period $ 281,267 $ 280,370 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1995, the statements of operations for the three and nine months ended September 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to September 30, 1995, and the statements of cash flows for the nine months ended September 30, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Equipment Equipment held for operating leases is stated at cost. Equipment held for sale is stated at the lower of the equipment's depreciated cost or net realizable value and is subject to a pending contract for sale. The components of equipment are as follows:
September 30, December 31, 1995 1994 ------------------------------------- Rail equipment $ 178,501 $ 178,501 Marine containers 137,548 160,473 Aircraft 913,188 913,188 Trailers and tractors 3,691,416 3,830,191 ------------------------------------- 4,920,653 5,082,353 Less accumulated depreciation (4,052,266) (3,980,922) ------------------------------------- 868,387 1,101,431 Equipment held for sale -- 273,785 ------------------------------------- Net equipment $ 868,387 $ 1,375,216 =====================================
All of the equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of September 30, 1995. With the exception of three railcars and three trailers, all of the equipment was either on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1994. The carrying value of equipment off-lease was $189,876 at December 31, 1994. During the nine months ended September 30, 1995, the Partnership sold or disposed of four trailers, one marine container and five twin stack railcars of which three railcars were off-lease at the end of 1994, with an aggregate net book value of $297,618 for proceeds of $532,487. During the nine months ended September 30, 1994, the Partnership sold or disposed of two trailers and three marine containers with an aggregate net book value of $30,514 for proceeds of $31,000. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS
ASSETS September 30, December 31, 1995 1994 ---------------------------------------- Equipment held for operating leases, at cost $ 1,730,204 $ 3,041,954 Less accumulated depreciation (1,392,773) (2,332,144) ---------------------------------------- Net equipment 337,431 709,810 Cash and cash equivalents 298,746 524,782 Accounts receivable, net of allowance for doubtful accounts of $45,990 in 1995 and $6,481 in 1994 40,339 116,088 Due from affiliates 7,639 1,744 Prepaid insurance and other assets 22,784 37,668 ---------------------------------------- Total assets $ 706,939 $ 1,390,092 ======================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Accounts payable and other liabilities $ 5,496 $ 5,060 Partners' capital (deficit): Limited Partners (9,529 units) 736,256 1,413,009 General Partner (34,813) (27,977) ---------------------------------------- Total partners' capital 701,443 1,385,032 ---------------------------------------- Total liabilities and partners' capital $ 706,939 $ 1,390,092 ========================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF INCOME
Three Months Ended Nine Months Ended September 30, September 30, 1995 1994 1995 1994 ---------------------------------------------------------------- Revenues: Lease revenue $ 59,601 $ 137,667 $ 214,872 $ 405,940 Interest and other income 4,946 6,030 20,387 15,178 Gain on disposition of equipment 26,015 8,185 78,354 12,466 ---------------------------------------------------------------- Total revenues 90,562 151,882 313,613 433,584 Expenses: Depreciation 24,872 43,023 86,332 129,952 Management fees to affiliate 5,955 8,921 18,294 29,803 Repairs and maintenance 9,495 20,719 41,914 34,622 General and administrative expenses to affiliates 14,495 20,942 55,847 61,983 Other general and administrative expenses 10,593 5,090 39,509 29,698 Bad debt expense 4,770 3,488 41,074 15,440 ---------------------------------------------------------------- Total expenses 70,180 102,183 282,970 301,498 ---------------------------------------------------------------- Net income $ 20,382 $ 49,699 $ 30,643 $ 132,086 ================================================================ Partners' share of net income: Limited Partners - 99% $ 20,178 $ 49,202 $ 30,337 $ 130,765 General Partner - 1% 204 497 306 1,321 --------------------------------------------------------------- Total $ 20,382 $ 49,699 $ 30,643 $ 132,086 ================================================================ Net income per Limited Partnership Unit (9,529 units) $ 2.12 $ 5.16 $ 3.18 $ 13.72 ================================================================ Cash distributions $ 149,861 $ 83,618 $ 714,232 $ 315,036 ================================================================ Cash distributions per Limited Partnership Unit $ 15.57 $ 8.69 $ 74.20 $ 32.73 ================================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL For the period from December 31, 1993 to September 30, 1995
Limited General Partners Partners Total ------------------------------------------------------- Partners' capital (deficit) at December 31, 1993 $ 1,615,924 $ (25,928) $ 1,589,996 Net income 191,753 1,937 193,690 Cash distributions (394,668) (3,986) (398,654) ------------------------------------------------------- Partners' capital (deficit) at December 31, 1994 1,413,009 (27,977) 1,385,032 Net income 30,337 306 30,643 Cash distributions (707,090) (7,142) (714,232) ------------------------------------------------------- Partners' capital (deficit) at September 30, 1995 $ 736,256 $ (34,813) $ 701,443 =======================================================
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, 1995 1994 --------------------------------- Operating activities: Net income $ 30,643 $ 132,086 Adjustments to reconcile net income to net cash provided by operating activities: Gain on disposition of equipment (78,354) (12,466) Depreciation 86,332 129,952 Changes in operating assets and liabilities Accounts receivable, net 75,749 (1,858) Due from affiliate (5,895) 4,284 Prepaid insurance and other assets 2,002 349 Accounts payable and other liabilities 436 2,902 --------------------------------- Net cash provided by operating activities 110,913 255,249 --------------------------------- Investing activities: Proceeds from disposition of equipment 364,401 30,103 Payments received on finance leases 12,882 13,354 --------------------------------- Net cash provided by investing activities 377,283 43,457 --------------------------------- Cash flows used in financing activities: Cash distributions paid to partners (714,232) (315,036) --------------------------------- Cash and cash equivalents: Net decrease in cash and cash equivalents (226,036) (16,330) Cash and cash equivalents at beginning of period 524,782 528,066 --------------------------------- Cash and cash equivalents at end of period $ 298,746 $ 511,736 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS September 30, 1995 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of September 30, 1995, and the statements of income for the three and nine months ended September 30, 1995 and 1994, the statements of changes in partners' capital for the period from December 31, 1993 to September 30, 1995, and the statements of cash flows for the nine months ended September 30, 1995 and 1994. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted from the accompanying financial statements. For further information, reference should be made to the financial statements and notes thereto included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, on file at the Securities and Exchange Commission. 2. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows:
September 30, December 31, 1995 1994 ------------------------------------- Marine containers $ 344,431 $ 417,961 Trailers 1,385,773 2,623,993 ------------------------------------- 1,730,204 3,041,954 Less accumulated depreciation (1,392,773) (2,332,144) ------------------------------------- Net equipment $ 337,431 $ 709,810 =====================================
All equipment owned by the Partnership was either on lease or operating in PLM-affiliated short-term rental facilities as of September 30, 1995. With the exception of 24 trailers, all equipment was either on lease or operating in PLM affiliated short-term rental facilities as of December 31, 1994. The carrying value of the off-lease equipment was $224,848 at December 31, 1994. During the 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. During the nine months ended September 30, 1994, the Partnership sold or disposed of 24 marine containers and one trailer with an aggregate net book value of $17,637 for proceeds of $30,103. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources (A) Sources The Partnerships' primary source of liquidity is operating cash flow. Proceeds realized from the sale or disposal of equipment are generally distributed to the partners. The Partnerships' initial source of capital was proceeds from their initial public offering of limited partnership units. (B) Asset Sales Equipment sales and dispositions prior to the Partnerships' planned liquidation phase generally result from either the exercise by lessees of fair market value purchase options provided for in certain leases, or the payment of stipulated loss values on equipment lost or disposed of during the time it is subject to lease agreements. Such disposal of equipment results unpredictably from the wear, tear, and general risk of normal operations. During the nine months ended September 30, 1995, one trailer and seven marine containers owned by TEP IXA . Additionally, the Partnership entered into a sales-type lease related to a commuter aircraft. The Partnership will receive future lease payments totaling $234,000 with an additional balloon payment of $919,012 at the end of the lease term. The total sales price for these disposed or sold equipment was $1,137,148; 20 trailers and four marine containers owned by TEP IXB were sold for a total of $241,627; five twin stack railcars, four trailers and one marine container owned by TEP IXC were sold for $532,487; and 30 trailers and 38 marine container owned by TEP IXD were sold or disposed of for $364,401. In 1996, the Partnership will enter into its 10th year of operation and the liquidation phase will begin. Therefore, equipment will be marketed for sale as current lease terms expire. Comparison of the Partnership's Operating Results for the Three Months Ended September 30, 1995 and 1994 TEP IXA (A) Revenues Total revenues of $177,949 for the quarter ended September 30, 1995, decreased from $283,598 for the same period in 1994, due primarily to lower lease revenues in the third quarter of 1995 compared to the same period in 1994. (1) Lease revenue decreased to $151,828 in the third quarter 1995, from $235,924 in the same period of 1994. The following table lists lease revenues earned by equipment type: For the three months ended September 30, 1995 1994 ------------------------------- Trailers $ 86,130 $ 170,377 Rail equipment 25,950 25,950 Marine containers 39,748 39,597 ------------------------------- $ 151,828 $ 235,924 =============================== Lease revenue decreased $84,096 due primarily to the decline in utilization in the short-term rental facilities in 1995 compared to 1994 levels, and the sale of 12 trailers, one yardster and one forklift in 1994, and one trailer in 1995. (2) For the quarter ended September 30, 1995, the Partnership realized a gain of $9,857 on the disposition of two marine containers, compared to the same period in 1994, where the Partnership realized a gain of $45,179 on the sale or disposition of one yardster and two marine containers. (B) Expenses Total expenses of $145,200 for the quarter ended September 30, 1995, decreased from $263,407 for the same period in 1994. The decrease in 1995 expenses was attributable to decreases in all general and administrative expenses, depreciation expense, and bad debt expense, offset partially by an increase in repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) increased to $22,951 in 1995, from $17,906 in 1994, due primarily to repairs done on a railcar to comply with the rules of the Association of American Railroads. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $122,249 in the third quarter 1995, from $245,501 in the same period in 1994. This change resulted primarily from: (a) a decrease of $78,204 in bad debt expense due to the General Partner's evaluation that previously establish reserves are no longer required based on the current open receivable balances and the current customer mix; (b) a decrease in depreciation expense of $53,990 from 1994 levels reflecting asset sales or dispositions during 1995 and 1994; (c) an increase of $8,942 in general and administrative expenses from 1994 levels due to higher administrative costs associated with the Partnership. (C) Net Income The Partnership's net income increased to $32,749 in the third quarter 1995, from $20,191 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the third quarter 1995, is not necessarily indicative of future periods. In the third quarter 1995, the Partnership distributed $73,719 to the Limited Partners, or approximately $3.04 per unit. TEP IXB (A) Revenues Total revenues of $166,037 for the quarter ended September 30, 1995, decreased from $240,426 for the same period in 1994 due primarily to lower lease revenues offset by a larger gain from the sale of equipment in the third quarter of 1995, compared to the same period in 1994. (1) Lease revenue decreased to $132,659 in the third quarter 1995, from $233,639 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the three months ended September 30, 1995 1994 ------------------------------- Aircraft $ 48,593 $ 48,593 Trailers and tractors 50,853 125,361 Rail equipment 21,870 49,170 Marine containers 11,343 10,515 ------------------------------- $ 132,659 $ 233,639 =============================== The decline was due primarily to the following: (a) Trailer and tractor revenue decreased $74,508 due to the sale of 13 tractors and nine trailers in 1994 and 20 trailers in 1995, and a decline in utilization in the short-term rental facilities in 1995 compared to 1994 levels; (b) Railcar revenue decreased $27,300 due to the sale of the letro porter in the third quarter of 1994, and the off-lease status of the sidelift at the beginning of 1995. (2) For the quarter ended September 30, 1995, the Partnership realized a gain of $27,862 on the sale or disposition of six trailers and one marine container, compared to the same period in 1994, where the Partnership realized a gain of $1,959 on the sale or disposal of two marine containers. (B) Expenses Total expenses of $132,405 for the quarter ended September 30, 1995, decreased from $179,695 for the same period in 1994. The decrease in 1995 expenses was attributable primarily to decreases in repairs and maintenance, all general and administrative expenses, and depreciation. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $24,313 in the third quarter 1995, from $26,958 in the same period in 1994. This decrease was attributable to the sale of nine trailers in 1994 and 20 trailers in 1995. (2) Indirect operating expenses (defined as depreciation expense, management fees, all general and administrative expenses, and bad debt expense) decreased to $108,092 in the third quarter 1995, from $152,737 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $27,421 from 1994 levels reflecting assets sales or dispositions during 1995 and 1994; (b) a decrease of $9,434 in general and administrative expenses from 1994 levels due to lower administrative costs associated with the Partnership; (c) a decrease in management fees to affiliate of $7,790 from 1994 levels due to lower levels of operating cash flow during the comparable periods. Management fees are calculated as the greater of 10% of the Partnership's Operating Cash Flow, or 1/2 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement. (C) Net Income The Partnership's net income of $33,632 in the third quarter 1995, increased from $60,731 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the third quarter 1995, is not necessarily indicative of future periods. In the third quarter 1995, the Partnership distributed $200,969 to the Limited Partners, or approximately $11.51 per unit. TEP IXC (A) Revenues Total revenues for the quarter ended September 30, 1995, decreased to $145,536 from $245,219 for the same period in 1994, due primarily to lower lease revenues. (1) Lease revenue decreased to $141,042 in the third quarter 1995, from $242,314 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the three months ended September 30, 1995 1994 ------------------------------- Trailers and tractors $ 112,465 $ 190,547 Aircraft 17,100 21,863 Rail equipment 7,800 27,875 Marine containers 3,677 2,029 ------------------------------- $ 141,042 $ 242,314 =============================== The decline was due primarily to the following: (a) Trailer revenue decreased $78,082 in 1995, as compared to 1994 levels due to lower utilization in the short-term rental facilities in 1995 compared to 1994 levels, and the sale of four trailers in 1995; (b) Rail revenue decreased $20,075 in 1995, as compared to 1994 levels due to the sale of five twin stack railcars in the first quarter of 1995; (c) Aircraft revenue decreased $4,763 in 1995, as compared to 1994 levels, due to the terms of the original lease agreement which called for a decrease in rate for 1995; (d) Marine container revenue increased $1,648 primarily due to an increase in utilization for dry marine containers from 1994 levels. (2) For the quarter ended September 30, 1995, the Partnership realized a gain of $424 on the sale or disposal of one trailer, and one marine container compared to the same period in 1994, where the Partnership had no asset sales. (B) Expenses Total expenses of $164,022 for the quarter ended September 30, 1995, decreased from $210,069 for the same period in 1994. The decrease in 1995 expenses was attributable to decreases in repairs and maintenance, depreciation, and all general and administrative expenses. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $32,263 in the third quarter 1995, from $51,132 in the same period in 1994. This decrease was attributable to higher maintenance expense incurred on the increased number of trailers in the short-term rental facilities as compared to the same period in 1994, when some rental yard trailers were on net term leases. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $131,759 in the third quarter 1995, from $158,937 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $12,862 from 1994 levels reflecting asset sales during 1995; (b) a decrease in general and administrative expenses of $6,860 due to lower administrative costs associated with the Partnership; (c) a decrease in management fees to affiliate of $5,397 from 1994 levels due to lower levels of operating cash flow during the comparable periods. Management fees are calculated as the greater of 10% of the Partnership's Operating Cash Flow, or 1/2 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement; (d) a decrease of $2,059 in bad debt expense due to the General Partner's evaluation that previously establish reserves are no longer required based on the current open receivable balances and the current customer mix. (C) Net Income (Loss) The Partnership incurred a net loss of $18,486 in the third quarter 1995, compared to a net income of $35,150 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the third quarter 1995, is not necessarily indicative of future periods. In the third quarter 1995, the Partnership distributed $97,784 to the Limited Partners, or approximately $5.78 per unit. TEP IXD (A) Revenues Total revenues of $90,562 for the quarter ended September 30, 1995 decreased from $151,882 for the same period in 1994, due primarily to lower lease revenues, offset by a larger gain on sale of equipment for the third quarter of 1995, compared to the same period in 1994. (1) Lease revenues decreased to $59,601 in the third quarter 1995, from $137,667 in the same period in 1994. The following table lists lease revenue earned by equipment type: For the three months ended September 30, 1995 1994 ------------------------------- Trailers $ 34,871 $ 115,959 Marine containers 24,730 21,708 ------------------------------- $ 59,601 $ 137,667 =============================== The decline was due primarily to the following: (a) Trailer revenue decreased $81,088 due primarily to the sale of 30 trailers during the first six months of 1995, and lower utilization in short-term rental facilities operated by an affiliate of the General Partner; (b) Marine container revenue increased $3,022 primarily due to an increase in utilization for dry marine containers from 1994 levels, offset by a decrease in revenue due to the disposal of 38 marine containers in 1995 and 29 in 1994. (2) For the quarter ended September 30, 1995, the Partnership realized a gain of $26,015 on the disposal of 11 marine containers, where the Partnership realized a gain of $8,185 on the sale or disposal of one trailer and 20 marine containers. (B) Expenses Total expenses of $70,180 for the quarter ended September 30, 1995, decreased from $102,183 for the same period in 1994. The decrease in 1995 expenses was attributable primarily to decreases in depreciation, management fees and repair and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $9,495 in the third quarter 1995, from $20,719 in the same period in 1994. This change resulted primarily from the refurbishment of nine trailers prior to being sold. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and all general and administrative expenses) decreased to $60,685 in the third quarter 1995, from $81,464 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $18,151 from 1994 levels, reflecting asset sales or dispositions during 1995; (b) a decrease in management fees to affiliate of $2,966 from 1994 levels due to lower levels of operating cash flow during the comparable periods. Management fees are calculated as the greater of 10% of the Partnership's Operating Cash Flow, or 1/2 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement; (c) an increase of $1,282 in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees. (C) Net Income The Partnership's net income of $20,382 in the third quarter 1995, decreased from $49,699 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the third quarter 1995, is not necessarily indicative of future periods. In the third quarter 1995, the Partnership distributed $148,362 to the Limited Partners, or approximately $15.57 per unit. Comparison of the Partnership's Operating Results for the Nine Months Ended September 30, 1995 and 1994 TEP IXA (A) Revenues Total revenues of $970,608 for the nine months ended September 30, 1995, increased from $550,660 for the same period in 1994, due primarily to a gain recorded on the sale of assets during 1995 compared to a loss on assets sales in 1994, offset by lower lease revenues in 1995 compared to 1994. (1) Lease revenue decreased to $392,052 in the nine months ended September 30, 1995, from $504,233 in the same period of 1994. The following table lists lease revenues earned by equipment type: For the nine months ended September 30, 1995 1994 ------------------------------- Trailers $ 228,739 $ 337,152 Rail equipment 77,850 70,379 Marine containers 85,463 96,702 ------------------------------- $ 392,052 $ 504,233 =============================== The decline was due primarily to the following: (a) Trailer revenue decreased $108,413 due to the decline in utilization in the short-term rental facilities in 1995 compared to 1994 levels, and the sale of 12 trailers, one yardster and one forklift in 1994 and one trailer in 1995; (b) Marine container revenue decreased $11,239 due to the disposal of nine marine containers in 1994 and seven in 1995, and a decline in utilization of the reefer fleet from 1994 levels; (c) Rail revenue increased $7,471 from 1994 levels due to a rental credit which was given to a current lessee in the first quarter of 1994. (2) For the nine months ended September 30, 1995, the Partnership realized a gain of $555,197 on the sale or disposition of one trailer, seven marine containers, and one commuter aircraft, compared to the same period in 1994, where the Partnership realized a gain of $40,496 on the sale or disposal of nine trailers, one yardster, and two marine containers. The sale of the commuter aircraft in the second quarter of 1995 was structured as a sales-type lease. The Partnership will receive future lease payments totaling $234,000 with an additional balloon payment of $919,012 at the end of the one-year lease term. (B) Expenses Total expenses of $582,411 for the nine months ended September 30, 1995, decreased from $697,117 for the same period in 1994. The decrease in 1995 expenses was attributable to decreases in bad debt expense, depreciation expense and all general and administrative expenses, offset by increases in repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) increased to $128,770 in 1995, from $84,690 in 1994. This increase was due primarily to the refurbishment required on the Partnership's aircraft which came off-lease in the beginning of 1995. This increase was slightly offset by a decrease in repairs and maintenance for trailers in the short-term rental facilities. In the first quarter of 1994, repairs were made on former term lease trailers prior to transitioning into the short-term rental facilities. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $453,641 in the nine months ended September 30, 1995, from $612,427 in the same period in 1994. This change resulted primarily from: (a) a decrease of $103,615 in bad debt expense due to the General Partner's evaluation that previously establish reserves are no longer required based on the current open receivable balances and the current customer mix; (b) a decrease in depreciation expense of $74,153 from 1994 levels reflecting assets sales or dispositions during 1995 and 1994; (c) an increase of $19,236 in general and administrative expenses from 1994 levels due to higher administrative costs associated with the Partnership. (C) Net Income (Loss) The Partnership's net income increased to $388,197 in the nine months ended September 30, 1995, from a net loss of $146,457 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the nine months ended September 30, 1995, is not necessarily indicative of future periods. In the nine months ended September 30, 1995, the Partnership distributed $221,170 to the Limited Partners, or approximately $9.11 per unit. TEP IXB (A) Revenues Total revenues of $510,607 for the nine months ended September 30, 1995, decreased from $713,246 for the same period in 1994 due primarily to lower lease revenue. (1) Lease revenue decreased to $393,303 in the nine months ended September 30, 1995, from $626,667 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the nine months ended September 30, 1995 1994 ------------------------------- Trailers and tractors $ 161,680 $ 303,325 Aircraft 145,778 145,778 Rail equipment 59,768 148,371 Marine containers 26,077 29,193 ------------------------------- $ 393,303 $ 626,667 =============================== The decline was due primarily to the following: (a) Trailer and tractor revenue decreased $141,645 due to the sale of 13 tractors and nine trailers in 1994 and 20 trailers in 1995, and a decline in utilization in the short-term rental facilities in 1995 compared to 1994 levels; (b) Railcar revenue decreased $88,603 due to the sale of the letro porter in the third quarter of 1994, and the off-lease status of the sidelift at the beginning of 1995; (c) Marine container revenue decreased $3,116 due to the disposal of five marine containers in 1994 and four in 1995. (2) For the nine months ended September 30, 1995, the Partnership realized a gain of $100,416 on the sale or disposition of 20 trailers and three marine containers, compared to the same period in 1994, where the Partnership realized a gain of $75,781 on the sale or disposal of eight tractors, five trailers, one Letro Porter and one marine container. (B) Expenses Total expenses of $415,872 for the nine months ended September 30, 1995, decreased from $537,557 for the same period in 1994. The decrease in 1995 expenses was attributable primarily to decreases in depreciation, repairs and maintenance, and management fees, offset by increases in all general and administrative expenses. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $51,170 in the nine months ended September 30, 1995, from $80,231 in the same period in 1994. This decrease was attributable to a decrease in repairs and maintenance due to the sale of nine trailers in 1994 and 20 trailers in 1995, and decreases in shop repairs for the Partnership's railcars. (2) Indirect operating expenses (defined as depreciation expense, management fees, all general and administrative expenses, and bad debt expense) decreased to $364,702 in the nine months ended September 30, 1995, from $457,326 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $90,833 from 1994 levels reflecting assets sales or dispositions during 1995 and 1994; (b) a decrease in management fees to affiliate of $11,895 from 1994 levels due to lower levels of operating cash flow during the comparable periods. Management fees are calculated as the greater of 10% of the Partnership's Operating Cash Flow, or 1/2 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement; (c) an increase of $10,104 in general and administrative expenses from 1994 levels. This reflects the increased administrative costs associated with the short-term rental facilities due to increased volume of trailers operating in these facilities. (C) Net Income The Partnership's net income of $94,735 in the nine months ended September 30, 1995, decreased from a net income of $175,689 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the nine months ended September 30, 1995, is not necessarily indicative of future periods. In the nine months ended September 30, 1995, the Partnership distributed $566,700 to the Limited Partners, or approximately $32.46 per unit. TEP IXC (A) Revenues Total revenues for the nine months ended September 30, 1995, increased to $756,015 from $717,627 for the same period in 1994, due primarily to a larger gain recorded from the sale of assets in 1995 compared to the same period in 1994, offset by lower lease revenues in 1995 compared to 1994. (1) Lease revenue decreased to $503,101 in the nine months ended September 30, 1995, from $711,109 in the same period in 1994. The following table lists lease revenues earned by equipment type: For the nine months ended September 30, 1995 1994 ------------------------------- Trailers and tractors $ 409,294 $ 561,759 Aircraft 51,300 65,588 Rail equipment 33,910 76,933 Marine containers 8,597 6,829 ------------------------------- $ 503,101 $ 711,109 =============================== The decline was due primarily to the following: (a) Trailer revenue decreased $152,465 in 1995 as compared to 1994 levels due to lower utilization in the short-term rental facilities, primarily refrigerated trailers, in 1995 compared to 1994 levels, and the sale of three trailers in 1995; (b) Rail revenue decreased $43,023 in 1995, as compared to 1994 levels due to the sale of five twin stack railcars in the first quarter of 1995; (c) Aircraft revenue decreased $14,288 in 1995, as compared to 1994 levels, due to the terms of the original lease agreement which called for a decrease in rate for 1995; (d) Marine container revenue increased $1,768 primarily due to an increase in utilization for dry marine containers from 1994 levels. (2) For the nine months ended September 30, 1995, the Partnership realized a gain of $234,869 on the sale or disposal of four trailers, five twin stack railcars and one marine container, compared to the same period in 1994, where the Partnership realized a gain of $486 on the sale or disposal of two trailers and one marine container. (3) Interest and other income increased $12,014 due to an increase in cash available for short-term investment. (B) Expenses Total expenses of $525,604 for the nine months ended September 30, 1995, decreased from $607,238 for the same period in 1994. The decrease in 1995 expenses was attributable to decreases in depreciation, all general and administrative expenses and management fees and bad debt expense, offset by an increase in repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) increased to $119,546 in the nine months ended September 30, 1995, from $109,272 in the same period in 1994. This increase was attributable to higher maintenance expense incurred on the increased trailers in the short-term rental facilities as compared to the same period in 1994 when some rental yard trailers were on net term leases. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $406,058 in the nine months ended September 30, 1995, from $497,966 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $32,014 from 1994 levels reflecting asset sales during 1995; (b) a decrease in general and administrative expenses of $27,465 due to lower administrative costs associated with the Partnership; (c) a decrease of $21,855 in bad debt expense due to the General Partner's evaluation that previously establish reserves are no longer required based on the current open receivable balances and the current customer mix; (d) a decrease in management fees to affiliate of $10,573 from 1994 levels due to lower levels of operating cash flows during 1995. Management fees are calculated as the greater of 10% of the Partnership's operating cash flow, or 1/12 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement. (C) Net Income The Partnership's net income increased to $230,411 in the nine months ended September 30, 1995, from $110,389 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the nine months ended September 30, 1995, is not necessarily indicative of future periods. In the nine months ended September 30, 1995, the Partnership distributed $800,112 to the Limited Partners, or approximately $47.30 per unit. TEP IXD (A) Revenues Total revenues of $313,613 for the nine months ended September 30, 1995 decreased from $433,584 for the same period in 1994 due primarily to lower lease revenues, offset by a larger gain on sale of equipment in 1995 compared to 1994. (1) Lease revenues decreased to $214,872 in the nine months ended September 30, 1995, from $405,940 in the same period in 1994. The following table lists lease revenue earned by equipment type: For the nine months ended September 30, 1995 1994 ------------------------------- Trailers $ 149,322 $ 348,394 Marine containers 65,550 57,546 ------------------------------- $ 214,872 $ 405,940 =============================== The decrease was due to the following: (a) Trailer revenue decreased $199,072 due primarily to the sale of 30 trailers during the first six months of 1995, and lower utilization in short-term rental facilities operated by an affiliate of the General Partner; (b) Marine container revenue increased $8,004 primarily due to an increase in utilization for dry marine containers from 1994 levels, offset by a decrease in revenue due to the disposal of 38 marine containers in 1995 and 24 in 1994. (2) For the nine months ended September 30, 1995, the Partnership realized a gain of $78,354 on the sale or disposal of 30 trailers and 38 marine containers, compared to the same period in 1994, where the Partnership realized a gain $12,466 on the sale or disposition of 24 marine containers and one trailer. (3) Interest and other income increased $5,209 due to an increase in cash available for short-term investment. (B) Expenses Total expenses of $282,970 for the nine months ended September 30, 1995, decreased from $301,498 for the same period in 1994. The decrease in 1995 expenses was attributable primarily to decreases in depreciation and management fees, partially offset by increases in bad debt expense and repair and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) increased to $41,914 in the nine months ended September 30, 1995, from $34,622 in the same period in 1994. This change resulted primarily from the refurbishment of 30 trailers prior to being sold. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and all general and administrative expenses) decreased to $241,056 in the nine months ended September 30, 1995, from $266,876 in the same period in 1994. This change resulted primarily from: (a) a decrease in depreciation expense of $43,620 from 1994 levels, reflecting asset sales or dispositions during 1995; (b) a decrease in management fees to affiliate of $11,509 from 1994 levels due to changes in the level of operating cash flow between the two years. Management fees are calculated monthly as the greater of 10% of Partnership's Operating Cash Flow, or 1/12 of 1/2% of the Partnership's Capital Contributions as defined in the Limited Partnership Agreement; (c) an increase of $25,634 in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables from trailer rental yard lessees; (d) an increase of $3,675 in general and administrative expenses from 1994 levels due to slightly higher administrative costs associated with the Partnership. (C) Net Income The Partnership's net income of $30,643 in the nine months ended September 30, 1995, decreased from a net income of $132,086 in the same period in 1994. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the nine months ended September 30, 1995, is not necessarily indicative of future periods. In the nine months ended September 30, 1995, the Partnership distributed $707,090 to the Limited Partners, or approximately $74.20 per unit. Trends Inflation and changing prices did not materially impact the Partnerships' revenues or expenses during the reported periods. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits None. (b) Reports on Form 8-K None. Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND By: PLM Financial Services, Inc. General Partner Date: November 10, 1995 By: /s/ David J. Davis ------------------- David J. Davis Vice President and Corporate Controller EX-27 2
5 9-MOS DEC-31-1995 SEP-30-1995 298,746 0 40,339 45,990 0 0 1,730,204 1,392,773 706,939 0 0 0 0 0 701,443 706,939 0 313,613 0 282,970 0 0 0 30,643 0 30,643 0 0 0 30,643 0 0
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