-----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, PMTAk057LPhneMEhDVvueKzPDQ725M5LgmaWo484O8BLXkLjpyK/XW/WiQiqxsu9 yfDzCB4+3tSCgSFqNB9Cng== 0000778794-97-000002.txt : 19970513 0000778794-97-000002.hdr.sgml : 19970513 ACCESSION NUMBER: 0000778794-97-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970512 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND CENTRAL INDEX KEY: 0000778794 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [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: 97600496 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 March 31, 1997. [ ] 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 800, San Francisco, CA 94105-1301 (Address of principal (Zip code) executive offices) Registrant's telephone number, including area code (415) 974-1399 ----------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ______ PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
March 31, December 31, 1997 1996 ---------------------------------------- Equipment held for operating leases, at cost $ 3,147,224 $ 3,486,094 Less accumulated depreciation (2,861,437 ) (3,140,358 ) ---------------------------------------- Net equipment 285,787 345,736 Cash and cash equivalents 263,812 211,878 Accounts receivable, net of allowance for doubtful accounts of $59,314 in 1997 and $57,870 in 1996 78,384 97,754 Prepaid insurance 1,833 2,438 ---------------------------------------- Total assets $ 629,816 $ 657,806 ======================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 5,059 $ 5,059 Accounts payable and other liabilities 6,886 9,350 -------------------------------------- Total liabilities 11,945 14,409 Partners' capital (deficit): Limited Partners (24,285 units) 718,647 743,918 General Partner (100,776 ) (100,521 ) -------------------------------------- Total partners' capital 617,871 643,397 -------------------------------------- Total liabilities and partners' capital $ 629,816 $ 657,806 ======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1997 1996 --------------------------------- Revenues: Lease revenue $ 74,417 $ 111,137 Interest and other income 2,487 10,965 Gain on disposition of equipment 58,174 2,669 ---------------------------------- Total revenues 135,078 124,771 Expenses: Depreciation 41,804 53,234 Management fees to affiliate 15,178 16,026 Repairs and maintenance 6,401 11,994 Insurance expense 906 2,942 General and administrative expenses to affiliates 17,917 23,657 Other general and administrative expenses 11,353 17,635 Provision for bad debts 1,331 354 ---------------------------------- Total expenses 94,890 125,842 ---------------------------------- Net income (loss) $ 40,188 $ (1,071 ) ================================== Partners' share of net income (loss) Limited Partners - 99% $ 39,786 $ (1,060 ) General Partner - 1% 402 (11 ) ---------------------------------- Total $ 40,188 $ (1,071 ) ================================== Net income (loss) per Limited Partnership Unit - 24,285 units $ 1.64 $ (0.04 ) ================================== Cash distributions $ 65,174 $ 74,465 ================================== Cash distributions per weighted average Limited Partnership Unit $ 2.68 $ 3.04 ================================== Special cash distributions $ -- $ 1,000,000 ================================== Special cash distributions per weighted average Limited Partnership Unit $ -- $ 40.77 ================================== Total cash distribution per weighted average Limited Partnership Unit $ 2.68 $ 43.81 ==================================
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, 1995 to March 31, 1997
Limited General Partners Partners Total ----------------------------------------------------- Partners' capital (deficit) at December 31, 1995 $ 2,087,769 $ (86,946 ) $ 2,000,823 Net income 317,231 3,204 320,435 Quarterly cash distributions (275,082 ) (2,779 ) (277,861 ) Special distributions (1,386,000 ) (14,000 ) (1,400,000 ) --------------------------------------------------------- Partners' capital (deficit) at December 31, 1996 743,918 (100,521 ) 643,397 Net income 39,786 402 40,188 Quarterly cash distributions (65,057 ) (657 ) (65,714 ) --------------------------------------------------------- Partners' capital (deficit) at March 31, 1997 $ 718,647 $ (100,776 ) $ 617,871 =========================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1997 1996 ---------------------------------- Operating activities: Net income (loss) $ 40,188 $ (1,071 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Gain on disposition of equipment (58,174 ) (2,669 ) Depreciation 41,804 53,234 Changes in operating assets and liabilities Accounts receivable, net 19,370 27,375 Prepaid insurance 605 1,384 Accounts payable and other liabilities (2,464 ) (13,303 ) Lessee deposits and reserves -- (18,272 ) ------------------------------------ Cash provided by operating activities 41,329 46,678 ------------------------------------ Investing activities: Proceeds from disposition of equipment 76,319 3,301 Payments received on sales-type lease -- 1,003,564 ------------------------------------ Cash provided by investing activities 76,319 1,006,865 ------------------------------------ Financing activities: Cash distributions paid to Limited Partners (65,057 ) (1,063,720 ) Cash distributions paid to General Partner (657 ) (10,745 ) ------------------------------------ Cash used in financing activities (65,714 ) (1,074,465 ) ------------------------------------ Cash and cash equivalents: Net increase (decrease) in cash and cash equivalents 51,934 (20,922 ) Cash and cash equivalents at beginning of period 211,878 251,709 ------------------------------------ Cash and cash equivalents at end of period $ 263,812 $ 230,787 ====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1997 and December 31, 1996, the statements of operations and cash flows for the three months ended March 31, 1997 and 1996, and the statements of changes in partners' capital for the period from December 31, 1995 to March 31, 1997. 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, 1996, on file at the Securities and Exchange Commission. 2. Reclassification Certain amounts in the 1996 financial statements have been reclassified to conform to the 1997 presentation. 3. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows:
March 31, December 31, 1997 1996 ------------------------------------- Marine containers $ 1,109,619 $ 1,128,798 Trailers 2,037,605 2,357,296 ------------------------------------- 3,147,224 3,486,094 Less accumulated depreciation (2,861,437 ) (3,140,358 ) ------------------------------------- Net equipment $ 285,787 $ 345,736 =====================================
With the exception of one sidelift, all equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of March 31, 1997 and December 31, 1996. The net carrying value of this sidelift was $21,793 and $28,433, respectively, as of March 31, 1997 and December 31, 1996. 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. During the three months ended March 31, 1996, the Partnership sold or disposed of a marine container with an aggregate book value of $633 for proceeds of $673. Additional proceeds of $2,629 were received for the commuter aircraft which was under sales-type lease. 4. Liquidation and special distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 4. Liquidation and special distributions (continued) distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. No special distributions were paid in the first quarter of 1997. During the three months ended March 31, 1996, the General Partner paid special distributions of $40.77 per Limited Partnership Unit which were the result of proceeds from the sale of equipment. The Partnership is not permitted to reinvest proceeds from sales or liquidations of equipment. These proceeds, in excess of operational cash requirements, are periodically paid out to limited partners in the form of special distributions. The sales and liquidations occur because of equipment destructions, the determination by the General Partner that it is the appropriate time to maximize the return on an asset through sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
March 31, December 31, 1997 1996 -------------------------------------- Equipment held for operating leases, at cost $ 1,721,058 $ 1,961,397 Less accumulated depreciation (1,574,834 ) (1,769,486 ) -------------------------------------- Net equipment 146,224 191,911 Cash and cash equivalents 165,786 478,922 Accounts receivable, net of allowance for doubtful accounts of $22,285 in 1997 and $22,285 in 1996 31,787 28,720 Prepaid insurance 1,383 1,879 -------------------------------------- Total assets $ 345,180 $ 701,432 ====================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 3,637 $ 3,637 Accounts payable and other liabilities 6,567 9,637 -------------------------------------- Total liabilities 10,204 13,274 Partners' capital (deficit): Limited Partners (17,460 units) 408,493 758,143 General Partner (73,517 ) (69,985 ) -------------- -------------- -------- -- Total partners' capital 334,976 688,158 -------------------------------------- Total liabilities and partners' capital $ 345,180 $ 701,432 ======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1997 1996 ------------------------------ Revenues: Lease revenue $ 20,242 $ 77,492 Interest and other income 4,109 4,095 Gain on disposition of equipment 31,354 11,851 ----------------------------- Total revenues 55,705 93,438 Expenses: Depreciation 26,041 38,369 Management fees to affiliate 10,913 10,913 Repairs and maintenance 2,773 9,658 Insurance expense 716 1,892 General and administrative expenses to affiliates 11,207 19,388 Other general and administrative expenses 9,174 9,431 Provision for (recovery of) bad debts -- (1,254 ) ----------------------------- Total expenses 60,824 88,397 Equity in net loss of unconsolidated special purpose entity -- (20,867 ) ----------------------------- Net loss $ (5,119 ) $ (15,826 ) ============================= Partners' share of net loss Limited Partners - 99% $ (5,068 ) $ (15,668 ) General Partner - 1% (51 ) (158 ) ----------------------------- Total $ (5,119 ) $ (15,826 ) ============================= Net loss per Limited Partnership Unit - 17,460 units $ (0.29 ) $ (0.90 ) ============================= Cash distributions $ 48,063 $ 101,751 ============================= Cash distributions per weighted average Limited Partnership Unit $ 2.73 $ 5.77 ============================= Special distributions $ 300,000 $ -- ============================= Special distributions per weighted average Limited Partnership Unit $ 17.01 $ -- ============================= Total distributions per weighted average Limited Partnership Unit $ 19.74 $ 5.77 =============================
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, 1995 to March 31, 1997
Limited General Partners Partners Total ----------------------------------------------------- Partners' capital (deficit) at December 31, 1995 $ 1,132,364 $ (66,205 ) $ 1,066,159 Net income 468,643 4,734 473,377 Quarterly cash distributions (397,364 ) (4,014 ) (401,378 ) Cash distributions (445,500 ) (4,500 ) (450,000 ) ----------------------------------------------------- Partners' capital (deficit) at December 31, 1996 758,143 (69,985 ) 688,158 Net loss (5,068 ) (51 ) (5,119 ) Quarterly cash distributions (47,582 ) (481 ) (48,063 ) Special cash distributions (297,000 ) (3,000 ) (300,000 ) ----------------------------------------------------- Partners' capital (deficit) at March 31, 1997 $ 408,493 $ (73,517 ) $ 334,976 =====================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1997 1996 --------------------------------- Operating activities: Net loss $ (5,119 ) $ (15,826 ) Adjustments to reconcile net loss to net cash provided by operating activities: Gain on disposition of equipment (31,354 ) (11,851 ) Depreciation 26,041 38,369 Equity in net loss from unconsolidated special purpose entity -- 20,867 Changes in operating assets and liabilities: Accounts receivable, net (3,067 ) 10,295 Prepaid insurance 496 956 Accounts payable and other liabilities (3,070 ) (2,909 ) Lessee deposits and reserve for repairs -- (9,304 ) --------------------------------- Cash (used in) provided by operating activities (16,073 ) 30,597 --------------------------------- Investing activities: Proceeds from disposition of equipment 51,000 35,592 Distributions from unconsolidated special purpose entity -- 16,156 --------------------------------- Cash provided by investing activities 51,000 51,748 Cash flows used in financing activities: Cash distributions paid to Limited Partners (344,582 ) (100,733 ) Cash distributions paid to General Partner (3,481 ) (1,018 ) --------------------------------- Cash used in financing activities (348,063 ) (101,751 ) --------------------------------- Cash and cash equivalents: Net decrease in cash and cash equivalents (313,136 ) (19,406 ) Cash and cash equivalents at beginning of period 478,922 351,363 --------------------------------- Cash and cash equivalents at end of period $ 165,786 $ 331,957 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1997 and December 31, 1996, the statements of operations and cash flows for the three months ended March 31, 1997 and 1996, and the statements of changes in partners' capital for the period from December 31, 1995 to March 31, 1997. 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, 1996, on file at the Securities and Exchange Commission. 2. Reclassification Certain amounts in the 1996 financial statements have been reclassified to conform to the 1997 presentation. 3. Equipment Owned equipment held for operating leases is stated at cost. The components of owned equipment are as follows:
March 31, December 31, 1997 1996 ----------------------------------- Marine containers $ 325,115 $ 325,115 Trailers and tractor 1,395,943 1,636,282 ----------------------------------- 1,721,058 1,961,397 Less accumulated depreciation (1,574,834 ) (1,769,486 ) ----------------------------------- Net equipment $ 146,224 $ 191,911 ===================================
With the exception of one sidelift, all equipment was either on lease or operating in PLM affiliated short-term rental facilities as of March 31, 1997 and December 31, 1996. The carrying value of this sidelift were $39,804 and $46,438, respectively, as of March 31, 1997 and December 31, 1996. 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. During the three months ended March 31, 1996, the Partnership sold or disposed of trailers and marine containers with an aggregate net book value of $23,741 for proceeds of $35,592. 4. Liquidation and special distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 4. Liquidation and special distributions (continued) sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. During the three months ended March 31, 1997, the General Partner paid special distributions of $17.01 per Limited Partnership Unit which were the result of proceeds from equipment liquidations. No special distributions were paid in the first quarter of 1996. The Partnership is not permitted to reinvest proceeds from sales or liquidations of equipment. These proceeds, in excess of operational cash requirements, are periodically paid out to limited partners in the form of special distributions. The sales and liquidations occur because of equipment destructions, the determination by the General Partner that it is the appropriate time to maximize the return on an asset through sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
March 31, December 31, 1997 1996 ---------------------------------------- Equipment held for operating leases, at cost $ 2,765,542 $ 3,088,393 Less accumulated depreciation (2,513,614 ) (2,767,149 ) ---------------------------------------- Net equipment 251,928 321,244 Cash and cash equivalents 197,895 264,450 Accounts receivable, net of allowance for doubtful accounts of $5,165 in 1997 and $2,249 in 1996 52,847 66,079 Prepaid insurance 2,023 2,663 ---------------------------------------- Total assets $ 504,693 $ 654,436 ======================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 3,523 $ 3,523 Accounts payable and other liabilities 8,833 14,382 --------------------------------------- Total liabilities 12,356 17,905 Partners' capital (deficit): Limited Partners (16,914 units) 561,876 704,628 General Partner (69,539 ) (68,097 ) -------------- -------------- --------- -- Total partners' capital 492,337 636,531 --------------------------------------- Total liabilities and partners' capital $ 504,693 $ 654,436 =======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1997 1996 ------------------------------ Revenues: Lease revenue $ 73,450 $ 106,638 Interest and other income 2,629 2,915 Gain on disposition of equipment 49,863 1,688 ----------------------------- Total revenues 125,942 111,241 Expenses: Depreciation 39,629 53,986 Management fees to affiliate 10,568 11,434 Repairs and maintenance 22,763 33,878 Insurance expense 1,003 1,827 General and administrative expenses to affiliates 27,531 31,942 Other general and administrative expenses 8,709 9,460 Provision for (recovery of) bad debts 2,916 (5,667 ) ----------------------------- Total expenses 113,119 136,860 Equity in net loss of unconsolidated special purpose entity -- (12,550 ) ----------------------------- Net income (loss) $ 12,823 $ (38,169 ) ============================= Partners' share of net income (loss): Limited Partners - 99% $ 12,695 $ (37,787 ) General Partner - 1% 128 (382 ) ----------------------------- Total $ 12,823 $ (38,169 ) ============================= Net income (loss) per Limited Partnership Unit (16,914 units) $ 0.75 $ (2.23 ) ============================= Cash distributions $ 57,017 $ 98,773 ============================= Cash distributions per weighted average Limited Partnership Unit $ 3.34 $ 5.78 ============================= Special distributions $ 100,000 $ - ============================= Special distributions per weighted average Limited Partnership Unit $ 5.85 $ -- ============================= Total distributions per weighted average Limited Partnership Unit $ 9.19 $ 5.78 =============================
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, 1995 to March 31, 1997
Limited General Partners Partners Total ------------------------------------------------------- Partners' capital (deficit) at December 31, 1995 $ 1,208,326 $ (63,009 ) $ 1,145,317 Net income 103,990 1,050 105,040 Quarterly cash distributions (310,688 ) (3,138 ) (313,826 ) Cash distributions (297,000 ) (3,000 ) (300,000 ) ------------------------------------------------------- Partners' capital (deficit) at December 31, 1996 704,628 (68,097 ) 636,531 Net income 12,695 128 12,823 Quarterly cash distributions (56,447 ) (570 ) (57,017 ) Special distributions (99,000 ) (1,000 ) (100,000 ) ------------------------------------------------------- Partners' capital (deficit) at March 31, 1997 $ 561,876 $ (69,539 ) $ 492,337 =======================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1997 1996 ---------------------------------- Operating activities: Net income (loss) $ 12,823 $ (38,169 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Gain on disposition of equipment (49,863 ) (1,688 ) Depreciation 39,629 53,986 Equity in net loss from unconsolidated special purpose entity 12,550 Change in operating assets and liabilities Accounts receivable, net 13,232 40,417 Prepaid insurance 640 (10,335 ) Accounts payable and other liabilities (5,549 ) (2,259 ) Lessee deposits and reserves for repairs -- (27,601 ) --------------------------------- Cash provided by operating activities 10,912 26,901 --------------------------------- Investing activities: Proceeds from disposition of equipment 79,550 5,208 Distributions from unconsolidated special purpose entity -- 3,130 --------------------------------- Cash provided by (used in) investing activities 79,550 8,338 --------------------------------- Cash flows used in financing activities: Cash distributions paid to Limited Partners (155,447 ) (97,785 ) Cash distributions paid to General Partner (1,570 ) (988 ) --------------------------------- Cash used in financing activities (157,017 ) (98,773 ) --------------------------------- Cash and cash equivalents: Net decrease in cash and cash equivalents (66,555 ) (63,534 ) Cash and cash equivalents at beginning of period 264,450 248,504 --------------------------------- Cash and cash equivalents at end of period $ 197,895 $ 184,970 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1997 and December 31, 1996, the statements of operations and cash flows for the three months ended March 31, 1997 and 1996, and the statements of changes in partners' capital for the period from December 31, 1995 to March 31, 1997. 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, 1996, on file at the Securities and Exchange Commission. 2. Reclassification Certain amounts in the 1996 financial statements have been reclassified to conform to the 1997 presentation. 3. Equipment Equipment held for operating leases is stated at cost. The components of owned equipment are as follows:
March 31, December 31, 1997 1996 ------------------------------------ Marine containers $ 114,623 $ 114,623 Trailers and tractor 2,650,919 2,973,770 ------------------------------------ 2,765,542 3,088,393 Less accumulated depreciation (2,513,614 ) (2,767,149 ) ------------------------------------ Net equipment $ 251,928 $ 321,244 ====================================
All of the equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of March 31, 1997 and December 31, 1996. 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. During the three months ended March 31, 1996, the Partnership sold or disposed of a marine container with a net book value of $3,520 for proceeds of $5,208. 4. Liquidation and special distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 4. Liquidation and special distributions (continued) liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. During the three months ended March 31, 1997, the General Partner paid special distributions of $5.85 per Limited Partnership Unit which were the result of proceeds from equipment liquidations. No special distributions were paid in the first quarter of 1996. The Partnership is not permitted to reinvest proceeds from sales or liquidations of equipment. These proceeds, in excess of operational cash requirements, are periodically paid out to limited partners in the form of special distributions. The sales and liquidations occur because of equipment destructions, the determination by the General Partner that it is the appropriate time to maximize the return on an asset through sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS ASSETS
March 31, December 31, 1997 1996 ---------------------------------------- Equipment held for operating leases, at cost $ 1,316,871 $ 1,463,355 Less accumulated depreciation (1,171,746 ) (1,280,566 ) ---------------------------------------- Net equipment 145,125 182,789 Cash and cash equivalents 107,814 77,140 Accounts receivable, net of allowance for doubtful accounts of $29,668 in 1997 and $29,601 in 1996 4,601 15,839 Prepaid insurance 2,012 2,293 ---------------------------------------- Total assets $ 259,552 $ 278,061 ======================================== LIABILITIES AND PARTNERS' CAPITAL Liabilities: Due to affiliates $ 1,985 $ 1,985 Accounts payable and other liabilities 6,557 9,477 --------------------------------------- Total liabilities 8,542 11,462 Partners' capital (deficit): Limited Partners (9,529 units) 290,326 305,760 General Partner (39,316 ) (39,161 ) --------------------------------------- Total partners' capital 251,010 266,599 --------------------------------------- Total liabilities and partners' capital $ 259,552 $ 278,061 =======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1997 1996 ------------------------------ Revenues: Lease revenue $ 19,219 $ 55,242 Interest and other income 837 2,566 Gain (loss) on disposition of equipment 25,044 (997 ) ----------------------------- Total revenues 45,100 56,811 Expenses: Depreciation 19,489 23,563 Management fees to affiliate 5,956 5,956 Repairs and maintenance 2,716 11,225 Provision for (recovery of) bad debts 67 (3,328 ) Insurance expense 435 352 General and administrative expenses to affiliates 6,904 15,417 Other general and administrative expenses 6,573 8,900 ----------------------------- Total expenses 42,140 62,085 ----------------------------- Net income (loss) $ 2,960 $ (5,274 ) ============================= Partners' share of net loss: Limited Partners - 99% $ 2,930 $ (5,221 ) General Partner - 1% 30 (53 ) --------------------------- Total $ 2,960 $ (5,274 ) ============================= Net income (loss) per Limited Partnership Unit (9,529 units) $ 0.31 $ (0.55 ) ============================= Cash distributions $ 18,549 $ 48,245 ============================= Cash distributions per weighted average Limited Partnership Unit $ 1.93 $ 5.01 =============================
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, 1995 to March 31, 1997
Limited General Partners Partners Total ------------------------------------------------------- Partners' capital (deficit) at December 31, 1995 $ 603,509 $ (36,153 ) $ 567,356 Net loss (16,504 ) (167 ) (16,671 ) Quarterly cash distributions (132,745 ) (1,341 ) (134,086 ) Special distributions (148,500 ) (1,500 ) (150,000 ) ------------------------------------------------------- Partners' capital (deficit) at December 31, 1996 305,760 (39,161 ) 266,599 Net income 2,930 30 2,960 Cash distributions (18,364 ) (185 ) (18,549 ) ------------------------------------------------------- Partners' capital (deficit) at March 31, 1997 $ 290,326 $ (39,316 ) $ 251,010 =======================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1997 1996 --------------------------------- Operating activities: Net income (loss) $ 2,960 $ (5,274 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Gain (loss) on disposition of equipment (25,044 ) 997 Depreciation 19,489 23,563 Changes in operating assets and liabilities Accounts receivable, net 11,238 (6,220 ) Prepaid insurance 281 14,811 Accounts payable and other liabilities (2,920 ) 480 --------------------------------- Cash provided by operating activities 6,004 28,357 --------------------------------- Investing activities: Proceeds from disposition of equipment 43,219 3,279 --------------------------------- Cash provided by investing activities 43,219 3,279 --------------------------------- Cash flows used in financing activities: Cash distributions paid to Limited Partners (18,364 ) (47,763 ) Cash distributions paid to General Partner (185 ) (482 ) --------------------------------- Cash used in financing activities (18,549 ) (48,245 ) --------------------------------- Cash and cash equivalents: Net increase (decrease) in cash and cash equivalents 30,674 (16,609 ) Cash and cash equivalents at beginning of period 77,140 191,840 --------------------------------- Cash and cash equivalents at end of period $ 107,814 $ 175,231 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 1. Opinion of Management In the opinion of the management of PLM Financial Services, Inc., the General Partner, the accompanying unaudited financial statements contain all adjustments necessary, consisting only of normal recurring accruals, to present fairly the Partnership's financial position as of March 31, 1997 and December 31, 1996, the statements of operations and cash flows for the three months ended March 31, 1997 and 1996, and the statements of changes in partners' capital for the period from December 31, 1995 to March 31, 1997. 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, 1996, on file at the Securities and Exchange Commission. 2. Reclassification Certain amounts in the 1996 financial statements have been reclassified to conform to the 1997 presentation. 3. Equipment Equipment held for operating leases is stated at cost. The components of equipment are as follows:
March 31, December 31, 1997 1996 ------------------------------------- Marine containers $ 238,005 $ 255,421 Trailers 1,078,866 1,207,934 ------------------------------------- 1,316,871 1,463,355 Less accumulated depreciation (1,171,746 ) (1,280,566 ) ------------------------------------- Net equipment $ 145,125 $ 182,789 =====================================
All equipment owned by the Partnership was either on lease or operating in PLM-affiliated short-term rental facilities as of March 31, 1997 and December 31, 1996. 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. During the three months ended March 31, 1996, the Partnership sold or disposed of marine containers with an aggregate net book value of $4,276 for proceeds of $3,279. 4. Liquidation During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS March 31, 1997 4. Liquidation (continued) sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. 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, 1997 and 1996 TEP IXA (A) Revenues Total revenues of $135,078 for the quarter ended March 31, 1997, increased from $124,771 for the same period in 1996, due primarily to higher gain on disposition on equipment in the first quarter of 1996, compared to the same period in 1997, offset by lower lease revenues and lower interest and other income. (1) Lease revenue decreased to $74,417 in the first quarter 1997, from $111,137 in the same period of 1996. The following table lists lease revenues earned by equipment type: For the three months ended March 31, 1997 1996 ------------------------------- Trailers $ 56,096 $ 55,317 Rail equipment -- 25,950 Marine containers 18,321 29,870 ------------------------------ $ 74,417 $ 111,137 ============================== The decline was due primarily to the following: (a) Railcar revenue decreased $25,950 due to the sale of all railcars during 1996; (b) Container revenue decreased $11,549 due to the sale or disposition of equipment and lower utilization in the first quarter of 1997 compared to the same period of 1996. (2) For the quarter ended March 31, 1997, the Partnership realized a gain of $58,174 on the sale or disposition of marine container and trailers. In the same period in 1996, the Partnership realized a gain of $2,669 which included a gain of $40 on the disposition of a marine container and an additional gain of $2,629 from a commuter aircraft which was under a sales-type lease. (B) Expenses Total expenses of $94,890 for the quarter ended March 31, 1997, decreased from $125,842 for the same period in 1996. The decrease in expenses in the first quarter of 1997, was attributable to decreases in general and administrative expenses, depreciation expense, and repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance and insurance) decreased to $7,307 in the first quarter of 1997, from $14,936 in the first quarter of 1996, due primarily to the sale of equipment during 1996 and the first quarter of 1997. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and general and administrative expenses) decreased to $87,583 in the first quarter 1997, from $110,906 in the same period in 1996. This change resulted primarily from: (a) a decrease in depreciation expense of $11,430 reflecting asset sales or dispositions during the first quarter of 1997 and during 1996; (b) a decrease in general and administrative expenses of $12,022 reflects the decreased accounting and administrative costs related to the short-term rental facilities due to the sale of equipment. (C) Net Income (loss) As a result of the foregoing, the Partnership generated a net income of $40,188 in the first quarter 1997, versus a net loss of $1,071 in the same period in 1996. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the first quarter 1997, is not necessarily indicative of future periods. In the first quarter 1997, the Partnership distributed $65,057 to the Limited Partners, or approximately $2.68 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, 1997, when compared to the same period of 1996. The following table presents revenues less direct expenses by owned equipment type:
For the three months ended March 31, 1997 1996 ------------------------------ Trailers $ 10,184 $ 38,958 Railcar equipment 2,431 21,579 Marine containers 4,420 6,835
Trailers: Trailer revenues and direct expenses were $13,206 and $3,022, respectively, for the quarter ended March 31, 1997, compared to $48,721 and $9,763, respectively, during the same period of 1996. The decrease in contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers; Railcar equipment: Railcar revenues and direct expenses were $2,550 and $119, respectively, for the quarter ended March 31, 1997, compared to $21,870 and $291, respectively, during the same period of 1996. The decrease in contribution was due to the sale of all railcars owned by the Partnership in the fourth quarter of 1996; Marine containers: Marine container revenues and direct expenses were $4,486 and $66, respectively, for the quarter ended March 31, 1997, compared to $6,901 and $66, respectively, during the same period of 1996. The number of marine containers owned by the Partnership has been declining due to sales and dispositions. The result of this declining fleet is a decrease in marine container contribution. (B) Indirect expenses related to owned equipment Total indirect expenses of $57,617 for the quarter ended March 31, 1997, decreased from $78,278 for the same period of 1996. The variance is explained as follows: (a) a $12,328 decrease in depreciation expense reflecting assets sales or dispositions during the first quarter of 1997 and during 1996; (b) a $8,438 decrease in general and administrative expenses reflects the decreased accounting costs and administrative costs related to short-term rental facilities due to sale of equipment. (C) Gain on disposition of equipment For the quarter ended March 31, 1997, the Partnership realized a gain of $31,354 on the disposal of trailers compared to the same period of 1996, where the Partnership realized a gain of $11,851 on the sale or disposition of trailers and marine containers. (D) Equity in net loss of unconsolidated special purpose entity Equity in net loss of unconsolidated special purpose entity was $20,867 for the quarter ended March 31, 1996, and represented the net loss generated from the Partnership's interest in an entity which owned an aircraft, accounted for under the equity method. The investment was sold in the third quarter of 1996. (E) Net Loss The Partnership generated net loss of $5,119 for the quarter ended March 31, 1997, compared to a net loss of $15,826 for the same period in 1996. 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 for the quarter ended March 31, 1997, is not necessarily indicative of future periods. For the quarter ended March 31, 1997, the Partnership distributed $344,582 to the Limited Partners, or approximately $19.74 per weighted average unit which included a special distribution of $17.01 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, 1997 when compared to the same period of 1996. The following table presents revenues less direct expenses by owned equipment type:
For the three months ended March 31, 1997 1996 --------------------------------- Trailers $ 51,728 $ 71,991 Railcar equipment (2,590 ) (1,400 ) Marine containers 804 1,643
Trailers: Trailer revenues and direct expenses were $75,172 and $23,444, respectively, for the quarter ended March 31, 1997, compared to $97,171 and $25,180, respectively, during the same period of 1996. The decrease of contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers; Railcar equipment: Railcar revenues and direct expenses were a credit of $2,550 and $40, respectively, for the quarter ended March 31, 1997, compared to $7,800 and $9,200, respectively during the same period of 1996. The decrease in contribution was due to the sale of all railcars owned by the Partnership in the fourth quarter of 1996. The credit in revenue in the first quarter of 1997 was due to a credit given back to a former lessee; Marine containers: Marine container revenues and direct expenses were $828 and $24, respectively, for the quarter ended March 31, 1997, compared to $1,667 and $24, respectively, during the same period of 1996. The number of marine containers owned by the Partnership has been declining due to sales and dispositions. The result of this declining fleet is a decrease in marine container contribution. (B) Indirect expenses related to owned equipment Total indirect expenses of $89,611 for the quarter ended March 31, 1997, decreased from $102,456 for the same period of 1996. The variance is explained as follows: (a) a $14,357 decrease in depreciation expense reflecting asset sales during the first quarter of 1997 and during 1996; (b) a $5,162 decrease in general and administrative expenses due to lower accounting costs and administrative costs due to sale of equipment; (c) a $8,583 increase in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables. (C) Gain on disposition of equipment For the quarter ended March 31, 1997, the Partnership realized a gain of $49,863 on the sale of trailers, compared to the same period in 1996, when the Partnership realized a gain of $1,688 on the disposal of a marine container. (D) Equity in net loss of unconsolidated special purpose entity Equity in net loss of unconsolidated special purpose entity was $12,550 for the quarter ended March 31, 1996, and represents the net loss generated from the Partnership's interest in an entity which owned an aircraft, accounted for under the equity method. The investment was sold in the second quarter of 1996. (E) Net Income The Partnership's net income increased to $12,823 for the quarter ended March 31, 1997, from a net loss of $38,169 in the same period in 1996. 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 for the quarter ended March 31, 1997, is not necessarily indicative of future periods. For the quarter ended March 31, 1997, the Partnership distributed $155,447 to the Limited Partners, or approximately $9.19 per weighted average unit which included a special distribution of $5.85 per weighted average unit. TEP IXD (A) Revenues Total revenues of $45,100 for the quarter ended March 31, 1997, decreased from $56,811 for the same period in 1996, due primarily to lower lease revenues and lower interest and other income in the first quarter of 1997, as compared to the same period in 1996, offset by a gain on sale of equipment for the first quarter of 1997, compared to a loss on disposition of equipment in the same period in 1996. (1) Lease revenues decreased to $19,219 in the first quarter 1997, from $55,242 in the same period in 1996. The following table lists lease revenue earned by equipment type: For the three months ended March 31, 1997 1996 ------------------------------- Trailers $ 11,583 $ 35,873 Marine containers 7,636 19,369 ------------------------------ $ 19,219 $ 55,242 ============================== The decline was due primarily to the following: (a) Trailer revenue decreased $24,290 due primarily to the sale of trailers during 1996 and in the first quarter of 1997, and lower utilization in short-term rental facilities operated by an affiliate of the General Partner; (b) Marine container revenue decreased $11,733 primarily due to the disposal of marine containers during 1996 and in the first quarter of 1997. (2) For the quarter ended March 31, 1997, the Partnership realized a gain of $25,044 on the disposal of marine containers and trailers, as compared to a loss of $997 on the disposal of marine containers for the quarter ended March 31, 1996. (B) Expenses Total expenses of $42,140 for the quarter ended March 31, 1997, decreased from $62,085 for the same period in 1996. The decrease in 1997 expenses was attributable primarily to decreases in general and administrative expenses, repair and maintenance and depreciation expenses, offset by an increase in bad debt expenses. (1) Direct operating expenses (defined as repairs and maintenance and insurance) decreased to $3,151 in the first quarter 1997, from $11,577 in the same period in 1996. This change resulted primarily from the disposition of equipment. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and general and administrative expenses) decreased to $38,989 in the first quarter 1997, from $50,508 in the same period in 1996. This change resulted primarily from: (a) a decrease in general and administrative expense of $10,840 due to lower accounting costs and administrative costs related to short-term rental facilities due to sale of equipment; (b) a decrease in depreciation expense of $4,074, reflecting asset sales or dispositions during the first quarter of 1997 and during 1996; (c) an increase of $3,395 in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables. (C) Net Income (loss) The Partnership incurred a net income of $2,960 in the first quarter 1997, compared to a net loss of $5,274 in the same period in 1996. The Partnership's ability to operate or liquidate assets, secure leases, and re-lease those assets whose leases expire during the duration of the Partnership is subject to many factors, and the Partnership's performance in the first quarter 1997, is not necessarily indicative of future periods. In the first quarter 1997, the Partnership distributed $18,364 to the Limited Partners, or approximately $1.93 per weighted average unit. (II) Asset Sales Equipment sales and dispositions result from General Partner decisions on liquidations, the exercise by lessees of fair market value purchase options provided for in certain leases, or the payment of stipulated loss values on equipment lost or disposed of during the time it is subject to lease agreements. During the three months ended March 31, 1997, a marine container and trailers owned by TEP IXA were sold for a total of $76,319. Trailers owned by TEP IXB were sold for a total of $51,000; trailers owned by TEP IXC were sold for $79,550; and marine containers and trailers owned by TEP IXD were sold or disposed of for $43,219. As discussed in note 4, the General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. (III) Market Values As of March 31, 1997, the General Partner estimated the current fair market value of each Partnership's equipment portfolio to be approximately : $0.9 million, $0.4 million, $0.9 million and $0.6 million for TEP IXA, TEP IXB, TEP IXC and TEP IXD, respectively. (IV) Outlook for the Future The General Partner intends to continue its strategy of closely matching the level of cash distributions to that of net operating cash flows. However, as stated above, the difficulty in predicting market conditions precludes the General Partner from accurately determining the impact of this strategy on liquidity. The Partnerships have entered into their liquidation phase and pursuant to the original operating plan, the Partnerships continue to market equipment for sale as current lease terms expire. 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: May 9, 1997 By: /s/ David J. Davis ------------------- David J. Davis Vice President and Corporate Controller EX-27 2
5 3-MOS DEC-31-1997 MAR-31-1997 107,814 0 34,269 29,668 0 0 1,316,871 1,171,746 259,552 0 0 0 0 0 251,010 259,552 0 45,100 0 42,140 0 0 0 2,960 0 2,960 0 0 0 2,960 0 0
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