-----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, Vp8NMJpN6HtL4Vw+3pHAjN+p8CTiARimZAdQt0zJQblO6RbJPCoQ1McXUhzSJ4F+ +0+vgLsNEgC2SrzsrihKLQ== 0000778794-97-000003.txt : 19970811 0000778794-97-000003.hdr.sgml : 19970811 ACCESSION NUMBER: 0000778794-97-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970808 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: 97654066 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 June 30, 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
June 30, December 31, 1997 1996 ------------------------------------- Assets: Equipment held for operating lease, at cost $ 2,660,165 $ 3,486,094 Less accumulated depreciation (2,468,129 ) (3,140,358 ) ------------------------------------- Net equipment 192,036 345,736 Cash and cash equivalents 230,644 211,878 Accounts receivable, net of allowance for doubtful accounts of $73,863 in 1997 and $57,870 in 1996 83,346 97,754 Prepaid insurance 975 2,438 ------------------------------------- Total assets $ 507,001 $ 657,806 ===================================== Liabilities and partners' capital: Liabilities: Accounts payable and other liabilities $ 8,940 $ 9,350 Due to affiliate 5,059 5,059 ------------------------------------- Total liabilities 13,999 14,409 ------------------------------------- Partners' capital (deficit): Limited partners (24,285 units) 595,027 743,918 General Partner (102,025 ) (100,521 ) ------------------------------------- Total partners' capital 493,002 643,397 ------------------------------------- Total liabilities and partners' capital $ 507,001 $ 657,806 =====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
For the Three Months For the Six Months Ended June 30, Ended June 30, 1997 1996 1997 1996 ----------------------------------------------------------------- Revenues: Lease revenue $ 56,530 $ 109,072 $ 130,947 $ 220,209 Interest and other income 2,850 1,880 5,337 12,845 Net gain on disposition of equipment 30,958 42,312 89,132 44,981 ----------------------------------------------------------------- Total revenues 90,338 153,264 225,416 278,035 ----------------------------------------------------------------- Expenses: Depreciation 37,337 52,148 79,141 105,382 Repairs and maintenance 9,741 13,905 16,142 25,899 Management fees to affiliate 15,178 15,178 30,356 31,204 General and administrative expenses to affiliates 13,741 21,838 31,658 45,495 Other general and administrative expenses 16,557 22,034 30,146 42,965 ----------------------------------------------------------------- Total expenses 92,554 125,103 187,443 250,945 ----------------------------------------------------------------- Net (loss) income $ (2,216 ) $ 28,161 $ 37,973 $ 27,090 ================================================================= Partners' share of net (loss) income: Limited partners - 99% $ (2,194 ) $ 27,879 $ 37,593 $ 26,819 General Partner - 1% (22 ) 282 380 271 ----------------------------------------------------------------- Total $ (2,216 ) $ 28,161 $ 37,973 $ 27,090 ================================================================= Net (loss) income per weighted-average limited partnership unit - 24,285 units $ (0.09 ) $ 1.15 $ 1.55 $ 1.10 ================================================================= Cash distributions $ -- $ 68,216 $ 65,714 $ 142,681 ================================================================= Cash distributions per weighted-average limited partnership unit $ -- $ 2.78 $ 2.68 $ 5.82 ================================================================= Special cash distributions $ 122,654 $ 100,000 $ 122,654 $ 1,100,000 ================================================================= Special cash distributions per weighted- average limited partnership unit $ 5.00 $ 4.08 $ 5.00 $ 44.84 ================================================================= Total cash distribution per weighted- average limited partnership unit $ 5.00 $ 6.86 $ 7.68 $ 50.66 =================================================================
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 June 30, 1997
Limited General Partners Partner Total --------------------------------------------------------- Partners' capital (deficit) at December 31, 1995 $ 2,087,769 $ (86,946 ) $ 2,000,823 Net income 317,231 3,204 320,435 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 37,593 380 37,973 Cash distributions (65,057 ) (657 ) (65,714 ) Special distributions (121,427 ) (1,227 ) (122,654 ) --------------------------------------------------------- Partners' capital (deficit) at June 30, 1997 $ 595,027 $ (102,025 ) $ 493,002 =========================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1997 1996 --------------------------------- Operating activities: Net income $ 37,973 $ 27,090 Adjustments to reconcile net income to net cash provided by operating activities: Net gain on disposition of equipment (89,132 ) (44,981 ) Depreciation 79,141 105,382 Changes in operating assets and liabilities: Accounts receivable, net 14,408 18,890 Prepaid insurance 1,463 2,635 Accounts payable and other liabilities (410 ) (17,795 ) Due to affiliate -- 8,000 Lessee deposits and reserves -- (17,174 ) ---------------------------------- Net cash provided by operating activities 43,443 82,047 ---------------------------------- Investing activities: Payments received on sales-type lease -- 1,003,564 Proceeds from disposition of equipment 163,691 64,997 ---------------------------------- Net cash provided by investing activities 163,691 1,068,561 ---------------------------------- Financing activities: Cash distributions paid to limited partners (186,484 ) (1,230,254 ) Cash distributions paid to General Partner (1,884 ) (12,427 ) ---------------------------------- Net cash used in financing activities (188,368 ) (1,242,681 ) ---------------------------------- Cash and cash equivalents: Net increase (decrease) in cash and cash equivalents 18,766 (92,073 ) Cash and cash equivalents at beginning of period 211,878 251,709 ---------------------------------- Cash and cash equivalents at end of period $ 230,644 $ 159,636 ==================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 primarily of normal recurring accruals, to present fairly the financial position of PLM Transportation Equipment Partners IXA 1986 Income Fund (the Partnership) as of June 30, 1997 and December 31, 1996, the statements of operations for the three and six months ended June 30, 1997 and 1996, the statements of changes in partners' capital for the period from December 31, 1995 to June 30, 1997, and the statements of cash flows for the six months ended June 30, 1997 and 1996. 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. Equipment The components of equipment are as follows:
June 30, December 31, 1997 1996 ----------------------------------- Trailers $ 1,555,454 $ 2,357,296 Marine containers 1,104,711 1,128,798 ----------------------------------- 2,660,165 3,486,094 Less accumulated depreciation (2,468,129 ) (3,140,358 ) ----------------------------------- Net equipment $ 192,036 $ 345,736 ===================================
With the exception of one trailer, all equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of June 30, 1997 and December 31, 1996. The net carrying value of this trailer was $15,154 and $28,433, respectively, as of June 30, 1997 and December 31, 1996. During the six months ended June 30, 1997, the Partnership sold or disposed of marine containers and trailers with an aggregate book value of $74,559 for proceeds of $163,691. During the six months ended June 30, 1996, the Partnership sold or disposed of marine containers and a trailer with an aggregate book value of $20,016 for proceeds of $64,997. 3. Liquidation and Special Distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be PLM TRANSPORTATION EQUIPMENT PARTNERS IXA 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 1997 3. Liquidation and Special Distributions (continued) distributed on a quarterly basis to the 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 six months ended June 30, 1997 and 1996, the General Partner paid special distributions of $5.00 and $44.84, respectively, per limited partnership unit which were the result of proceeds from the sale of equipment. During the liquidation phase, 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 the 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 the 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
June 30, December 31, 1997 1996 -------------------------------------- Assets: Equipment held for operating lease, at cost $ 1,167,636 $ 1,961,397 Less accumulated depreciation (1,081,588 ) (1,769,486 ) -------------------------------------- Net equipment 86,048 191,911 Cash and cash equivalents 196,125 478,922 Accounts receivable, net of allowance for doubtful accounts of $26,455 in 1997 and $22,285 in 1996 13,591 28,720 Prepaid insurance 721 1,879 -------------------------------------- Total assets $ 296,485 $ 701,432 ====================================== Liabilities and partners' capital: Liabilities: Accounts payable and other liabilities $ 7,160 $ 9,637 Due to affiliate 3,637 3,637 -------------------------------------- Total liabilities 10,797 13,274 -------------------------------------- Partners' capital (deficit): Limited partners (17,460 units) 359,698 758,143 General Partner (74,010 ) (69,985 ) -------------------------------------- Total partners' capital 285,688 688,158 -------------------------------------- Total liabilities and partners' capital $ 296,485 $ 701,432 ======================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
For the Three Months For the Six Months Ended June 30, Ended June 30, 1997 1996 1997 1996 --------------------------------------------------------------- Revenues: Lease revenue $ 8,683 $ 70,109 $ 28,925 $ 147,601 Interest and other income 2,108 3,643 6,217 7,738 Net gain on disposition of equipment 53,998 17,915 85,352 29,766 --------------------------------------------------------------- Total revenues 64,789 91,667 120,494 185,105 --------------------------------------------------------------- Expenses: Depreciation 20,003 35,757 46,044 74,126 Repairs and maintenance 2,883 14,198 5,656 23,416 Management fees to affiliate 10,913 10,912 21,825 21,825 General and administrative expenses to affiliates 5,286 15,930 16,493 35,318 Other general and administrative expenses 8,858 11,892 18,748 22,401 --------------------------------------------------------------- Total expenses 47,943 88,689 108,766 177,086 --------------------------------------------------------------- Equity in net loss of unconsolidated special- purpose entity -- (18,239 ) -- (39,106 ) --------------------------------------------------------------- Net income (loss) $ 16,846 $ (15,261 ) $ 11,728 $ (31,087 ) =============================================================== Partners' share of net income (loss) Limited partners - 99% 16,678 $ (15,108 ) $ 11,611 $ (30,776 ) General Partner - 1% 168 (153 ) 117 (311 ) --------------------------------------------------------------- Total $ 16,846 $ (15,261 ) $ 11,728 $ (31,087 ) =============================================================== Net income (loss) per weighted-average limited partnership unit - 17,460 units $ 0.96 $ (0.87 ) $ 0.67 $ (1.76 ) =============================================================== Cash distributions $ -- $ 101,751 $ 48,063 $ 203,502 =============================================================== Cash distributions per weighted-average limited partnership unit $ -- $ 5.77 $ 2.73 $ 11.54 =============================================================== Special cash distributions $ 66,135 $ -- $ 366,135 $ -- =============================================================== Special cash distributions per weighted- average limited partnership unit $ 3.75 $ -- $ 20.76 $ -- =============================================================== Total cash distributions per weighted- average limited partnership unit $ 3.75 $ 5.77 $ 23.49 $ 11.54 ===============================================================
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 June 30, 1997
Limited General Partners Partner Total ------------------------------------------------------ Partners' capital (deficit) at December 31, 1995 $ 1,132,364 $ (66,205 ) $ 1,066,159 Net income 468,643 4,734 473,377 Cash distributions (397,364 ) (4,014 ) (401,378 ) Special distributions (445,500 ) (4,500 ) (450,000 ) ----------------------------------------------------- Partners' capital (deficit) at December 31, 1996 758,143 (69,985 ) 688,158 Net income 11,611 117 11,728 Cash distributions (47,582 ) (481 ) (48,063 ) Special distributions (362,474 ) (3,661 ) (366,135 ) ----------------------------------------------------- Partners' capital (deficit) at June 30, 1997 $ 359,698 $ (74,010 ) $ 285,688 =====================================================
See accompanying notes to financial statements PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1997 1996 --------------------------------- Operating activities: Net income (loss) $ 11,728 $ (31,087 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Net gain on disposition of equipment (85,352 ) (29,766 ) Depreciation 46,044 74,126 Equity in net loss from unconsolidated special- purpose entity -- 39,106 Changes in operating assets and liabilities: Accounts receivable, net 15,129 34,300 Prepaid insurance 1,158 1,798 Accounts payable and other liabilities (2,477 ) (64,615 ) Lessee deposits and reserve for repairs -- (16,180 ) --------------------------------- Net cash (used in) provided by operating activities (13,770 ) 7,682 --------------------------------- Investing activities: Distributions from unconsolidated special-purpose entity -- 67,607 Proceeds from disposition of equipment 145,171 73,594 --------------------------------- Net cash provided by investing activities 145,171 141,201 --------------------------------- Financing activities: Cash distributions paid to limited partners (410,056 ) (201,467 ) Cash distributions paid to General Partner (4,142 ) (2,035 ) --------------------------------- Net cash used in financing activities (414,198 ) (203,502 ) --------------------------------- Cash and cash equivalents: Net decrease in cash and cash equivalents (282,797 ) (54,619 ) Cash and cash equivalents at beginning of period 478,922 351,363 --------------------------------- Cash and cash equivalents at end of period $ 196,125 $ 296,744 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 primarily of normal recurring accruals, to present fairly the financial position of PLM Transportation Equipment Partners IXB 1986 Income Fund (the Partnership) as of June 30, 1997 and December 31, 1996, the statements of operations for the three and six months ended June 30, 1997 and 1996, the statements of changes in partners' capital for the period from December 31, 1995 to June 30, 1997, and the statements of cash flows for the six months ended June 30, 1997 and 1996. 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. Equipment The components of owned equipment are as follows:
June 30, December 31, 1997 1996 ----------------------------------- Trailers $ 842,521 $ 1,636,282 Marine containers 325,115 325,115 ----------------------------------- 1,167,636 1,961,397 Less accumulated depreciation (1,081,588 ) (1,769,486 ) ----------------------------------- Net equipment $ 86,048 $ 191,911 ===================================
With the exception of one trailer, all equipment was either on lease or operating in PLM affiliated short-term rental facilities as of June 30, 1997 and December 31, 1996. The carrying value of this trailer was $33,170 and $46,438, respectively, as of June 30, 1997 and December 31, 1996. During the six months ended June 30, 1997, the Partnership sold or disposed of trailers with a net book value of $59,819 for proceeds of $145,171. During the six months ended June 30, 1996, the Partnership sold or disposed of trailers and marine containers with an aggregate net book value of $43,828 for proceeds of $73,594. 3. Liquidation and Special Distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until PLM TRANSPORTATION EQUIPMENT PARTNERS IXB 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 1997 3. 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 six months ended June 30, 1997, the General Partner paid special distributions of $20.76 per limited partnership unit which were the result of proceeds from equipment liquidations. No special distributions were paid for the six months ended June 30, 1996. During the liquidation phase, 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 the 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 the sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. 4. Reclassifications Certain amounts in the 1996 financial statements have been reclassified to conform to the 1997 presentation. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS
June 30, December 31, 1997 1996 ------------------------------------- Assets: Equipment held for operating lease, at cost $ 2,397,414 $ 3,088,393 Less accumulated depreciation (2,211,233 ) (2,767,149 ) ------------------------------------- Net equipment 186,181 321,244 Cash and cash equivalents 174,084 264,450 Accounts receivable, net of allowance for doubtful accounts of $10,404 in 1997 and $2,249 in 1996 34,687 66,079 Prepaid insurance 1,085 2,663 ------------------------------------- Total assets $ 396,037 $ 654,436 ===================================== Liabilities and partners' capital: Liabilities: Accounts payable and other liabilities $ 7,810 $ 14,382 Due to affiliate 3,523 3,523 ------------------------------------- Total liabilities 11,333 17,905 ------------------------------------- Partners' capital (deficit): Limited partners (16,914 units) 455,319 704,628 General Partner (70,615 ) (68,097 ) ------------------------------------- Total partners' capital 384,704 636,531 ------------------------------------- Total liabilities and partners' capital $ 396,037 $ 654,436 =====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
For the Three Months For the Six Months Ended June 30, Ended June 30, 1997 1996 1997 1996 --------------------------------------------------------------- Revenues: Lease revenue $ 51,565 $ 81,683 $ 125,014 $ 188,321 Interest and other income 2,135 4,758 4,764 7,673 Net gain on disposition of equipment 34,121 16,513 83,985 18,201 --------------------------------------------------------------- Total revenues 87,821 102,954 213,763 214,195 --------------------------------------------------------------- Expenses: Depreciation 35,569 51,803 75,198 105,789 Repairs and maintenance 9,504 23,478 32,267 57,356 Management fees to affiliate 10,568 10,590 21,136 22,024 General and administrative expenses to affiliates 15,431 26,046 42,962 57,988 Other general and administrative expenses 17,633 34,712 30,261 40,332 --------------------------------------------------------------- Total expenses 88,705 146,629 201,824 283,489 --------------------------------------------------------------- Equity in net income of unconsolidated special-purpose entity -- 124,093 -- 111,543 --------------------------------------------------------------- Net (loss) income $ (884 ) $ 80,418 $ 11,939 $ 42,249 =============================================================== Partners' share of net (loss) income: Limited partners - 99% $ (875 ) $ 79,614 $ 11,820 $ 41,827 General Partner - 1% (9 ) 804 119 422 --------------------------------------------------------------- Total $ (884 ) $ 80,418 $ 11,939 $ 42,249 =============================================================== Net (loss) income per weighted-average limited partnership unit (16,914 units) $ (0.05 ) $ 4.71 $ 0.70 $ 2.47 =============================================================== Cash distributions $ -- $ 98,774 $ 57,017 $ 197,547 =============================================================== Cash distributions per weighted-average limited partnership unit $ -- $ 5.78 $ 3.34 $ 11.56 =============================================================== Special distributions $ 106,749 $ -- $ 206,749 $ -- =============================================================== Special distributions per weighted-average limited partnership unit $ 6.25 $ -- $ 12.10 $ -- =============================================================== Total distributions per weighted-average limited partnership unit $ 6.25 $ 5.78 $ 15.44 $ 11.56 ===============================================================
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 June 30, 1997
Limited General Partners Partner Total ----------------------------------------------------- Partners' capital (deficit) at December 31, 1995 $ 1,208,326 $ (63,009 ) $ 1,145,317 Net income 103,990 1,050 105,040 Cash distributions (310,688 ) (3,138 ) (313,826 ) Special distributions (297,000 ) (3,000 ) (300,000 ) ----------------------------------------------------- Partners' capital (deficit) at December 31, 1996 704,628 (68,097 ) 636,531 Net income 11,820 119 11,939 Cash distributions (56,447 ) (570 ) (57,017 ) Special distributions (204,682 ) (2,067 ) (206,749 ) ----------------------------------------------------- Partners' capital (deficit) at June 30, 1997 $ 455,319 $ (70,615 ) $ 384,704 =====================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1997 1996 --------------------------------- Operating activities: Net income $ 11,939 $ 42,249 Adjustments to reconcile net income to net cash provided by operating activities: Net gain on disposition of equipment (83,985 ) (18,201 ) Depreciation 75,198 105,789 Equity in net income from unconsolidated special-purpose entity -- (111,543 ) Change in operating assets and liabilities: Accounts receivable, net 31,392 46,317 Prepaid insurance 1,578 21,710 Accounts payable and other liabilities (6,572 ) (4,177 ) Lessee deposits and reserves for repairs -- -- --------------------------------- Net cash provided by operating activities 29,550 82,144 --------------------------------- Investing activities: Distributions from unconsolidated special-purpose entity -- 244,906 Proceeds from disposition of equipment 143,850 53,308 --------------------------------- Net cash provided by investing activities 143,850 298,214 --------------------------------- Financing activities: Cash distributions paid to limited partners (261,129 ) (195,572 ) Cash distributions paid to General Partner (2,637 ) (1,975 ) --------------------------------- Net cash used in financing activities (263,766 ) (197,547 ) --------------------------------- Cash and cash equivalents: Net (decrease) increase in cash and cash equivalents (90,366 ) 182,811 Cash and cash equivalents at beginning of period 264,450 248,504 --------------------------------- Cash and cash equivalents at end of period $ 174,084 $ 431,315 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 primarily of normal recurring accruals, to present fairly the financial position of PLM Transportation Equipment Partners IXC 1986 Income Fund (the Partnership) as of June 30, 1997 and December 31, 1996, the statements of operations for the three and six months ended June 30, 1997 and 1996, the statements of changes in partners' capital for the period from December 31, 1995 to June 30, 1997, and the statements of cash flows for the six months ended June 30, 1997 and 1996. 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. Equipment The components of owned equipment are as follows:
June 30, December 31, 1997 1996 ----------------------------------- Trailers $ 2,282,791 $ 2,973,770 Marine containers 114,623 114,623 ----------------------------------- 2,397,414 3,088,393 Less accumulated depreciation (2,211,233 ) (2,767,149 ) ----------------------------------- Net equipment $ 186,181 $ 321,244 ===================================
All of the equipment was either on lease or operating in PLM-affiliated short-term rental facilities as of June 30, 1997 and December 31, 1996. During the six months ended June 30, 1997, the Partnership sold or disposed of trailers with a net book value of $59,865 for proceeds of $143,850. During the six months ended June 30, 1996, the Partnership sold or disposed of trailers and a marine container with a net book value of $35,107 for proceeds of $53,308. 3. Liquidation and Special Distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the PLM TRANSPORTATION EQUIPMENT PARTNERS IXC 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 1997 3. Liquidation and Special Distributions (continued) liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the Partnership have not been adjusted to reflect liquidation values. The equipment portfolio continues to be carried at the lower of depreciated cost or fair value less cost to dispose. Although the General Partner estimates that there will be distributions after liquidation of assets and liabilities, the amounts cannot be accurately determined prior to actual liquidation of the equipment. Any excess proceeds over expected Partnership obligations will be distributed to the Partners throughout the liquidation period. Upon final liquidation, the Partnership will be dissolved. During the six months ended June 30, 1997, the General Partner paid special distributions of $12.10 per limited partnership unit which were the result of proceeds from equipment liquidations. No special distributions were paid for the six months ended June 30, 1996. During the liquidation phase, 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 the 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 the sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. 4. Reclassifications Certain amounts in the 1996 financial statements have been reclassified to conform to the 1997 presentation. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) BALANCE SHEETS
June 30, December 31, 1997 1996 -------------------------------------- Assets: Equipment held for operating lease, at cost $ 1,273,278 $ 1,463,355 Less accumulated depreciation (1,150,964 ) (1,280,566 ) -------------------------------------- Net equipment 122,314 182,789 Cash and cash equivalents 83,624 77,140 Accounts receivable, net of allowance for doubtful accounts of $27,921 in 1997 and $29,601 in 1996 6,206 15,839 Prepaid insurance 1,605 2,293 -------------------------------------- Total assets $ 213,749 $ 278,061 ====================================== Liabilities and partners' capital: Liabilities: Accounts payable and other liabilities $ 6,574 $ 9,477 Due to affiliate 1,985 1,985 ------------------------------------- Total liabilities 8,559 11,462 ------------------------------------- Partners' capital (deficit): Limited partners (9,529 units) 244,964 305,760 General Partner (39,774 ) (39,161 ) ------------------------------------- Total partners' capital 205,190 266,599 ------------------------------------- Total liabilities and partners' capital $ 213,749 $ 278,061 =====================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF OPERATIONS
For the Three Months For the Six Months Ended June 30, Ended June 30, 1997 1996 1997 1996 --------------------------------------------------------------- Revenues: Lease revenue $ 19,787 $ 34,205 $ 39,006 $ 89,447 Interest and other income 973 1,576 1,810 4,142 Net gain on disposition of equipment 15,535 11,087 40,578 10,090 --------------------------------------------------------------- Total revenues 36,295 46,868 81,394 103,679 --------------------------------------------------------------- Expenses: Depreciation 17,940 22,976 37,429 46,539 Repairs and maintenance 1,684 5,952 4,400 17,177 Management fees to affiliate 5,956 5,955 11,911 11,911 General and administrative expenses to affiliates 3,522 10,150 10,426 25,567 Other general and administrative expenses 6,636 17,184 13,644 26,436 (Recovery of) provision for bad debt (1,747 ) 1,603 (1,680 ) (1,725 ) --------------------------------------------------------------- Total expenses 33,991 63,820 76,130 125,905 --------------------------------------------------------------- Net income (loss) $ 2,304 $ (16,952 ) $ 5,264 $ (22,226 ) =============================================================== Partners' share of net income (loss): Limited partners - 99% $ 2,281 $ (16,782 ) $ 5,211 $ (22,004 ) General Partner - 1% 23 (170 ) 53 (222 ) ------------------------------------------------------------- Total $ 2,304 $ (16,952 ) $ 5,264 $ (22,226 ) =============================================================== Net income (loss) per weighted-average limited partnership unit (9,529 units) $ 0.24 $ (1.76 ) $ 0.55 $ (2.31 ) =============================================================== Cash distributions $ -- $ 48,245 $ 18,549 $ 96,491 =============================================================== Cash distributions per weighted-average limited partnership unit $ -- $ 5.01 $ 1.93 $ 10.02 =============================================================== Special distributions $ 48,124 $ 100,000 $ 48,124 $ 100,000 =============================================================== Special distributions per weighted-average limited partnership unit $ 5.00 $ 10.39 $ 5.00 $ 10.39 =============================================================== Total distributions per weighted-average limited partnership unit $ 5.00 $ 15.40 $ 6.93 $ 20.41 ===============================================================
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 June 30, 1997
Limited General Partners Partner Total -------------------------------------------------------- Partners' capital (deficit) at December 31, 1995 $ 603,509 $ (36,153 ) $ 567,356 Net loss (16,504 ) (167 ) (16,671 ) 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 5,211 53 5,264 Cash distributions (18,364 ) (185 ) (18,549 ) Special distributions (47,643 ) (481 ) (48,124 ) ------------------------------------------------------- Partners' capital (deficit) at June 30, 1997 $ 244,964 $ (39,774 ) $ 205,190 =======================================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1997 1996 --------------------------------- Operating activities: Net income (loss) $ 5,264 $ (22,226 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Net gain on disposition of equipment (40,578 ) (10,090 ) Depreciation 37,429 46,539 Changes in operating assets and liabilities: Accounts receivable, net 9,633 4,808 Prepaid insurance 688 15,126 Accounts payable and other liabilities (2,903 ) (4,986 ) Due to affiliate -- 9,624 --------------------------------- Net cash provided by operating activities 9,533 38,795 --------------------------------- Investing activities: Proceeds from disposition of equipment 63,624 22,359 --------------------------------- Net cash provided by investing activities 63,624 22,359 --------------------------------- Financing activities: Cash distributions paid to limited partners (66,007 ) (194,526 ) Cash distributions paid to General Partner (666 ) (1,965 ) --------------------------------- Net cash used in financing activities (66,673 ) (196,491 ) --------------------------------- Cash and cash equivalents: Net increase (decrease) in cash and cash equivalents 6,484 (135,337 ) Cash and cash equivalents at beginning of period 77,140 191,840 --------------------------------- Cash and cash equivalents at end of period $ 83,624 $ 56,503 =================================
See accompanying notes to financial statements. PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 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 primarily of normal recurring accruals, to present fairly the financial position of PLM Transportation Equipment Partners IXD 1986 Income Fund (the Partnership) as of June 30, 1997 and December 31, 1996, and the statements of operations for the three and six months ended June 30, 1997 and 1996, the statements of changes in partners' capital for the period from December 31, 1995 to June 30, 1997, and the statements of cash flows for the six months ended June 30, 1997 and 1996. 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. Equipment The components of equipment are as follows:
June 30, December 31, 1997 1996 ------------------------------------ Trailers $ 1,060,428 $ 1,207,934 Marine containers 212,850 255,421 ------------------------------------ 1,273,278 1,463,355 Less accumulated depreciation (1,150,964 ) (1,280,566 ) ------------------------------------ Net equipment $ 122,314 $ 182,789 ====================================
All equipment owned by the Partnership was either on lease or operating in PLM-affiliated short-term rental facilities as of June 30, 1997 and as of December 31, 1996. During the six months ended June 30, 1997, the Partnership sold or disposed of marine containers and trailers with an aggregate net book value of $23,046 for proceeds of $63,624. During the six months ended June 30, 1996, the Partnership sold or disposed of marine containers and trailer with an aggregate net book value of $12,269 for proceeds of $22,359. 3. Liquidation and Special Distributions During the first quarter of 1996, the Partnership completed its 10th year of operations. As originally anticipated by the General Partner, the Partnership will be liquidated in an orderly manner in its 11th and 12th years of operation. The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As sale proceeds are received the General Partner intends to periodically declare special distributions to distribute the sale proceeds to the partners. During the liquidation phase of the Partnership the equipment will continue to be leased under operating leases until sold. Operating cash flows, to the extent they exceed Partnership expenses, will continue to be distributed on a quarterly basis to partners. The amounts reflected for assets and liabilities of the PLM TRANSPORTATION EQUIPMENT PARTNERS IXD 1986 INCOME FUND (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS June 30, 1997 3. Liquidation and Special Distributions (continued) 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 six months ended June 30, 1997 and 1996, the General Partner paid special distributions of $5.00 and $10.39, respectively, per limited partnership unit which were the result of proceeds from equipment liquidations. During the liquidation phase, 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 the 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 the sale of that asset, and, in some leases, the ability of the lessee to exercise purchase options. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (I) RESULTS OF OPERATIONS Comparison of the Partnership's Operating Results for the Three Months Ended June 30, 1997 and 1996 TEP IXA (A) Revenues Total revenues of $90,338 for the quarter ended June 30, 1997, decreased from $153,264 for the same period in 1996, due primarily to lower lease revenues and lower gain on the disposition on equipment. (1) Lease revenue decreased to $56,530 in the second quarter 1997, from $109,072 in the same period of 1996. The following table lists lease revenues earned by equipment type: For the Three Months Ended June 30, 1997 1996 ------------------------------- Trailers $ 43,400 $ 70,278 Marine containers 13,130 23,344 Rail equipment -- 15,450 ------------------------------ $ 56,530 $ 109,072 ============================== The decline was due primarily to the following: (a) Trailer revenue decreased $26,878 due primarily to the sale of trailers during 1997 and 1996, and lower utilization in short-term rental facilities operated by an affiliate of the General Partner. (b) Container revenue decreased $10,214 due to the sale of equipment and low utilization. (c) No railcar revenue was earned in the second quarter of 1997 due to the sale of all the Partnership's railcars during 1996. (2) For the quarter ended June 30, 1997, the Partnership realized a gain of $30,958 on the sale or disposition of trailers and a marine container, compared to the same period in 1996, where the Partnership realized a gain of $42,312 on the disposition of marine containers and a trailer. (B) Expenses Total expenses of $92,554 for the quarter ended June 30, 1997, decreased from $125,103 for the same period in 1996. The decrease in expenses in the second quarter of 1997 was attributable to decreases in depreciation expense, general and administrative expenses, and repairs and maintenance. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $9,741 in the second quarter of 1997, from $13,905 in the second quarter of 1996, due primarily to the sale of equipment during 1997 and 1996. (2) Indirect operating expenses (defined as depreciation expense, management fees, and general and administrative expenses) decreased to $82,813 in the second quarter 1997, from $111,198 in the same period in 1996. This change resulted primarily from: (a) a decrease in depreciation expense of $14,811 reflecting asset sales or dispositions during 1997 and 1996. (b) a decrease in general and administrative expenses of $13,574 reflects the decreased 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 had a net loss of $2,216 in the second quarter 1997, as compared to a net income of $28,161 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 second quarter 1997, is not necessarily indicative of future periods. In the second quarter of 1997, the Partnership distributed a special distribution of $121,427 to the limited partners, or approximately $5.00 per weighted-average limited partnership 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 June 30, 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 June 30, 1997 1996 -------------------------------- Marine containers $ 3,340 $ 5,857 Trailers 2,172 29,549 Railcar equipment (89 ) 20,577
Marine containers: Marine container revenues and direct expenses were $3,399 and $59, respectively, for the quarter ended June 30, 1997, compared to $5,905 and $48, respectively, during the same period of 1996. The number of marine containers owned by the Partnership declined over the past twelve months due to sales and dispositions. In addition, the marine container fleet experienced lower utilization, resulting in a decrease in marine container contribution. Trailers: Trailer revenues and direct expenses were $5,284 and $3,112, respectively, for the quarter ended June 30, 1997, compared to $42,334 and $12,785, 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 zero and $89, respectively, for the quarter ended June 30, 1997, compared to $21,870 and $1,293, respectively, during the same period of 1996. The decrease in contribution was due to the sale of all the railcars owned by the Partnership in the fourth quarter of 1996. (B) Indirect Expenses Related to Owned Equipment Operations Total indirect expenses of $44,683 for the quarter ended June 30, 1997, decreased from $74,123 for the same period of 1996. The variance is explained as follows: (1) a $15,754 decrease in depreciation expense reflecting assets sales or dispositions during 1997 and 1996. (2) a $11,233 decrease in general and administrative expenses reflects the decreased administrative costs related to short-term rental facilities due to sale of equipment. (C) Net Gain on Disposition of Equipment For the quarter ended June 30, 1997, the Partnership realized a gain of $53,998 on the disposal of trailers compared to the same period of 1996, where the Partnership realized a gain of $17,915 on the disposition of trailers. (D) Equity in Net Loss of Unconsolidated Special-Purpose Entity Equity in net loss of unconsolidated special-purpose entity was $18,239 for the quarter ended June 30, 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. This investment was sold in the third quarter of 1996. (E) Net Income (Loss) As a result of the foregoing, the Partnership generated net income of $16,846 for the quarter ended June 30, 1997, compared to a net loss of $15,261 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 June 30, 1997, is not necessarily indicative of future periods. For the quarter ended June 30, 1997, the Partnership distributed a special distribution of $65,474 to the limited partners, or approximately $3.75 per weighted-average limited partnership 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 June 30, 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 June 30, 1997 1996 --------------------------------- Trailers $ 40,708 $ 41,495 Marine containers 703 1,572 Railcar equipment (24 ) 14,705
Trailers: Trailer revenues and direct expenses were $50,840 and $10,132, respectively, for the quarter ended June 30, 1997, compared to $72,293 and $30,798, 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. Marine containers: Marine container revenues and direct expenses were $725 and $22, respectively, for the quarter ended June 30, 1997, compared to $1,590 and $18, respectively, during the same period of 1996. The number of marine containers owned by the Partnership declined over the past twelve months due to sales and dispositions. In addition, the marine container fleet experienced lower utilization, resulting in a decrease in marine container contribution. Railcar equipment: Railcar revenues and direct expenses were zero and $24, respectively, for the quarter ended June 30, 1997, compared to $7,800 and a credit of $6,905, respectively during the same period of 1996. The decrease in contribution was due to the sale of all the railcars owned by the Partnership in the fourth quarter of 1996. (B) Indirect Expenses Related to Owned Equipment Total indirect expenses of $78,527 for the quarter ended June 30, 1997, decreased from $122,718 for the same period of 1996. The variance is explained as follows: (1) a $27,908 decrease in general and administrative related to the short-term rental facilities due to the sale of equipment. (2) a $16,234 decrease in depreciation expense reflecting asset sales during 1997 and 1996. (C) Net Gain on Disposition of Equipment For the quarter ended June 30, 1997, the Partnership realized a gain of $34,121 on the disposition of trailers, compared to the same period in 1996, when the Partnership realized a gain of $16,513 on the disposal of trailers. (D) Equity in Net Income of Unconsolidated Special-purpose Entity Equity in the net income of the unconsolidated special-purpose entity was $124,093 for the quarter ended June 30, 1996, and represents the net income 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. (F) Net Income (Loss) As a result of the foregoing, the Partnership had a net loss of $884 for the quarter ended June 30, 1997, as compared to a net income of $80,418 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 June 30, 1997, is not necessarily indicative of future periods. For the quarter ended June 30, 1997, the Partnership distributed a special distribution of $105,682 to the limited partners, or approximately $6.25 per weighted-average limited partnership unit. TEP IXD (A) Revenues Total revenues of $36,295 for the quarter ended June 30, 1997, decreased from $46,868 for the same period in 1996, due primarily to lower lease revenues and lower interest and other income in the second quarter of 1997 as compared to the same period in 1996, partially offset by a higher gain on the disposition of equipment for the second quarter of 1997. (1) Lease revenues decreased to $19,787 in the second quarter of 1997, from $34,205 in the same period in 1996. The following table lists lease revenue earned by equipment type: For the Three Months Ended June 30, 1997 1996 ------------------------------- Marine containers $ 10,156 $ 9,534 Trailers 9,631 24,671 ------------------------------ $ 19,787 $ 34,205 ============================== The decline was due to lower lease revenue from trailers as a result of the sale of trailers during the first two quarters of 1997 and during 1996, and lower utilization in short-term rental facilities operated by an affiliate of the General Partner. (2) For the quarter ended June 30, 1997, the Partnership realized a gain of $15,535 on the disposal of marine containers and a trailer, as compared to a gain of $11,087 on the disposal of marine containers and a trailer for the quarter ended June 30, 1996. (B) Expenses Total expenses of $33,991 for the quarter ended June 30, 1997, decreased from $63,820 for the same period in 1996. The decrease in 1997 expenses was attributable primarily to decreases in general and administrative expenses, depreciation expenses, repairs and maintenance, and bad debt expenses. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $1,684 in the second quarter of 1997, from $5,952 in the same period in 1996. The decrease 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 $32,307 in the second quarter of 1997, from $57,868 in the same period in 1996. The decrease resulted primarily from: (a) a decrease in general and administrative expense of $17,176 due to lower administrative costs related to short-term rental facilities due to sale of equipment. (b) a decrease in depreciation expense of $5,036, reflecting asset sales or dispositions during 1997 and 1996. (c) a decrease of $3,350 in bad debt expense due to the General Partner's evaluation of the collectibility of trade receivables. (C) Net Income (Loss) As a result of the foregoing, the Partnership had a net income of $2,304 in the second quarter of 1997, as compared to a net loss of $16,952 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 second quarter 1997, is not necessarily indicative of future periods. In the second quarter 1997, the Partnership distributed a special distribution of $47,643 to the limited partners, or approximately $5.00 per weighted-average limited partnership unit. Comparison of the Partnership's Operating Results for the Six Months Ended June 30, 1997 and 1996 TEP IXA (A) Revenues Total revenues of $225,416 for the six months ended June 30, 1997, decreased from $278,035 for the same period in 1996, due primarily to lower lease revenue and lower interest income, offset by higher gain on the disposition of equipment. (1) Lease revenue decreased to $130,947 in the six months ended June 30, 1997, from $220,209 in the same period of 1996. The following table lists lease revenues earned by equipment type: For the Six Months Ended June 30, 1997 1996 ------------------------------ Trailers $ 99,497 $ 136,096 Rail equipment -- 30,900 Marine containers 31,450 53,213 ------------------------------ $ 130,947 $ 220,209 ============================== The decline was due primarily to the following: (a) Trailer revenue decreased $36,599 due to disposition of equipment and lower utilization of trailers in the short-term rental facilities in 1997, compared to 1996 levels. (b) Railcar revenue decreased $30,900 due to the sale of all the Partnership's railcars during 1996. (c) Marine container revenue decreased $21,763 due to lower utilization on certain containers in the first six months of 1997 when compared to the same period of 1996 and the disposal of equipment. (2) For the six months ended June 30, 1997, the Partnership realized a gain of $89,132 on the sale or disposition of trailers and marine containers, compared to the same period in 1996, where the Partnership realized a gain of $44,981 on the sale or disposition of a trailer and marine containers. (B) Expenses Total expenses of $187,443 for the six months ended June 30, 1997, decreased from $250,945 for the same period in 1996. The decrease in 1997 expenses was attributable to decreases in depreciation expense, repairs and maintenance, and all general and administrative expenses. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $16,142 in 1997, from $25,899 in the same period in 1996. This decrease was due primarily to the disposition of trailers. (2) Indirect operating expenses (defined as depreciation expense, management fees, and all general and administrative expenses) decreased to $171,301 in the six months ended June 30, 1997, from $225,046 in the same period in 1996. This change resulted primarily from: (a) a decrease of $26,656 in general and administrative expenses from 1996 levels due to lower administrative costs related to the short-term rental facilities due to the sale of equipment. (b) a decrease in depreciation expense of $26,241 from 1996 levels reflecting assets sales or dispositions during 1997 and 1996. (C) Net Income As a result of the foregoing, the Partnership's net income increased to $37,973 in the six months ended June 30, 1997, from $27,090 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 six months ended June 30, 1997, is not necessarily indicative of future periods. In the six months ended June 30, 1997, the Partnership distributed $186,484 to the limited partners, or approximately $7.68 per weighted-average limited partnership unit which included a special distribution of $5.00 per weighted-average limited partnership unit. TEP IXB (A) Owned Equipment Operations Revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expense) on owned equipment decreased in the six months ended June 30, 1997, when compared to the same period of 1996. The following table presents revenues less direct expenses by owned equipment type:
For the Six Months Ended June 30, 1997 1996 ------------------------------ Trailers $ 12,356 $ 68,468 Marine containers 7,760 12,692 Railcar equipment 2,342 42,156
Trailers: Trailer revenues and direct expenses were $18,490 and $6,134, respectively, for the six months ended June 30, 1997, compared to $91,055 and $22,587, respectively during the same period of 1996. The decrease of net contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers. Marine containers: Marine container revenues and direct expenses were $7,885 and $125, respectively, for the six months ended June 30, 1997, compared to $12,806 and $114, respectively during the same period of 1996. The number of marine containers owned by the Partnership declined over the past twelve months due to sales and dispositions. In addition, the marine container fleet experienced lower utilization, resulting in a decrease in marine container contribution. Railcar equipment: Railcar revenues and direct expenses were $2,550 and $208, respectively, for the six months ended June 30, 1997, compared to $43,740 and $1,584, respectively, during the same period of 1996. The decrease in net contribution was due to the sale of all the Partnership's railcars owned by the Partnership in the fourth quarter of 1996. (B) Indirect Expenses Related to Owned Equipment Total indirect expenses decreased to $102,299 for the six months ended June 30, 1997, from $152,801 for the same period of 1996. The variance is explained as follows: (1) a decrease in depreciation expense of $28,082 from 1996 levels reflecting assets sales or dispositions during 1997 and 1996. (2) a decrease of $20,781 in general and administrative expenses from 1996 levels. This reflects the decreased administrative costs related to the short-term rental facilities due to the sale of equipment. (C) Net Gain on Disposition of Equipment For the quarter ended June 30, 1997, the Partnership realized a gain of $85,352 on the disposal of trailers compared to the same period in 1996, where the Partnership realized a gain of $29,766 on the disposal of marine containers and trailers. (D) Equity in Net Loss of Unconsolidated Special-Purpose Entity Equity in the net loss of the unconsolidated special-purpose entity was $39,106 for the six months ended June 30, 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. This investment was sold in the third quarter of 1996. (E) Net Income (Loss) As a result of the foregoing, the Partnership's net income of $11,728 in the six months ended June 30, 1997, as compared to a net loss of $31,087 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 six months ended June 30, 1997, is not necessarily indicative of future periods. In the six months ended June 30, 1997, the Partnership distributed $410,056 to the limited partners, or approximately $23.49 per weighted-average limited partnership unit which included a special distribution of $20.76 per weighted-average limited partnership unit. TEP IXC (A) Owned Equipment Operations Revenues less direct expenses (defined as repairs and maintenance and asset specific insurance expenses) on owned equipment decreased during the first six months of 1997 when compared to the same period of 1996. The following table presents revenues less direct expenses by owned equipment type:
For the Six Months Ended June 30, 1997 1996 --------------------------------- Trailers $ 92,436 $ 113,420 Marine containers 1,507 3,216 Railcar equipment (2,614 ) 13,305
Trailers: Trailer revenues and direct expenses were $126,011 and $33,575, respectively, for the six months ended June 30, 1997, compared to $169,463 and $56,043, respectively during the same period of 1996. The decrease of net contribution was due to lower utilization of trailers in the short-term rental facilities and the disposition of trailers. Marine containers: Marine container revenues and direct expenses were $1,553 and $46, respectively, for the six months ended June 30, 1997, compared to $3,258 and $42 respectively during the same period of 1996. The number of marine containers owned by the Partnership declined over the past twelve months due to sales and dispositions. In addition, the marine container fleet experienced lower utilization, resulting in a decrease in marine container contribution. Railcar equipment: Railcar revenues and direct expenses were a credit of $2,550 and $64, respectively, for the six months ended June 30, 1997, compared to $15,600 and $2,295, respectively during the same period of 1996. The decrease of net contribution was due to the sale of equipment. The credit in revenue for the six months ended June 30, 1997 was due to a credit given to a former lessee. (B) Indirect Expenses Related to Owned Equipment Total indirect expenses of $168,139 for the six months ended June 30, 1997, decreased from $225,109 for the same period of 1996. The variance is explained as follows: (1) a decrease in general and administrative expenses of $25,490 due to lower administrative costs related to the short-term rental facilities due to the sale of equipment. (2) a decrease in depreciation expense of $30,591 from 1996 levels was due to asset sales during 1997 and 1996. (C) Net Gain on disposition of Equipment For the six months ended June 30, 1997, the Partnership realized a gain of $83,985 on the sale of trailers, compared to the same period in 1996, where the Partnership realized a gain of $18,201 on the sale of trailers and a marine container. (D) Equity in Net Income of Unconsolidated Special-Purpose Entity Equity in the net income of the unconsolidated special-purpose entity was $111,543 for the six months ended June 30, 1996, and represents the net income generated from the Partnership's interest in an entity which owned an aircraft, accounted for under the equity method. This investment was sold in the second quarter of 1996. (E) Net Income As a result of the foregoing, the Partnership's net income decreased to $11,939 in the six months ended June 30, 1997, from $42,249 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 six months ended June 30, 1997, is not necessarily indicative of future periods. In the six months ended June 30, 1997, the Partnership distributed $261,129 to the limited partners, or approximately $15.44 per weighted-average limited partnership unit which included a special distribution of $12.10 per weighted-average limited partnership unit. TEP IXD (A) Revenues Total revenues of $81,394 for the six months ended June 30, 1997 decreased from $103,679 for the same period in 1996 due primarily to lower lease revenues and lower interest and other income in 1997 compared to 1996, partially offset by a higher gain on sale of equipment. (1) Lease revenues decreased to $39,006 in the six months ended June 30, 1997, from $89,447 in the same period in 1996. The following table lists lease revenue earned by equipment type: For the Six months Ended June 30, 1997 1996 ------------------------------ Trailers $ 21,214 $ 60,544 Marine containers 17,792 28,903 ------------------------------ $ 39,006 $ 89,447 ============================== The decrease was due to the following: (a) Trailer revenue decreased $39,330 due primarily to lower utilization in short-term rental facilities operated by an affiliate of the General Partner and the disposition of equipment. (b) Marine container revenue decreased $11,111 primarily due to the disposal of equipment and lower utilization. (2) Interest and other income decreased $2,332 due to a decrease in cash available for short-term investment. (3) For the six months ended June 30, 1997, the Partnership realized a gain of $40,578 on the sale or disposal of trailers and marine containers, compared to the same period in 1996, where the Partnership realized a gain $10,090 on the sale or disposal of a trailer and marine containers. (B) Expenses Total expenses decreased to $76,130 for the six months ended June 30, 1997, from $125,905 for the same period in 1996. The decrease in 1997 expenses was attributable primarily to decreases in repairs and maintenance, depreciation, and general and administrative expenses. (1) Direct operating expenses (defined as repairs and maintenance) decreased to $4,400 in the six months ended June 30, 1997, from $17,177 in the same period in 1996. The decrease resulted primarily from the disposal of trailers. (2) Indirect operating expenses (defined as depreciation expense, management fees, bad debt expense, and general and administrative expenses) decreased to $71,730 in the six months ended June 30, 1997, from $108,728 in the same period in 1996. This change resulted primarily from: (a) a decrease of $27,933 in general and administrative expenses from 1996 levels due to lower administrative costs related to the short-term rental facilities due to the sale of equipment. (b) a decrease in depreciation expense of $9,110 from 1996 levels, reflecting asset sales or dispositions during 1997 and 1996. (C) Net Income (Loss) As a result of the foregoing, the Partnership had net income of $5,264 in the six months ended June 30, 1997, as compared to a net loss of $22,226 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 six months ended June 30, 1997, is not necessarily indicative of future periods. In the six months ended June 30, 1997, the Partnership distributed $66,007 to the limited partners, or approximately $6.93 per weighted-average limited partnership unit which included a special distribution of $5.00 per weighted-average limited partnership unit. (II) ASSET SALES The General Partner is actively marketing the remaining equipment portfolio with the intent of maximizing sale proceeds. As discussed in Note 3, the Partnerships entered the liquidation phase in 1996. During the six months ended June 30, 1997, marine containers and trailers owned by TEP IXA were disposed for a total of $163,691. Trailers owned by TEP IXB were disposed for a total of $145,171. Trailers owned by TEP IXC were disposed for $143,850. Marine containers and trailers owned by TEP IXD were disposed of for $63,624. (III) MARKET VALUES As of June 30, 1997, the General Partner estimated the current fair market value of each Partnership's equipment portfolio to be approximately : $0.8 million, $0.3 million, $0.8 million and $0.6 million for TEP IXA, TEP IXB, TEP IXC and TEP IXD, respectively. (IV) OUTLOOK FOR THE FUTURE Pursuant to the original operating plan, the Partnerships entered into their liquidation phase during 1996 and the General Partner is actively pursuing the sale of all of the Partnerships' equipment with the intention of winding up the Partnerships and distributing all available cash to the Partners. (V) FORWARD LOOKING INFORMATION Except for historical information contained herein, the discussion in this Form 10-Q contains forward-looking statements that involve risks and uncertainties, such as statements of the Partnership's plans, objectives, expectations and intentions. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. The Partnership's actual results could differ materially from those discussed here. (this space intentionally left blank) 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: August 8, 1997 By: /s/ Richard Brock ------------------ Richard Brock Vice President and Corporate Controller EX-27 2
5 6-MOS DEC-31-1997 JUN-30-1997 83,624 0 34,127 27,921 0 0 1,273,278 1,150,964 213,749 0 0 0 0 0 205,190 213,749 0 81,394 0 76,130 0 0 0 76,130 0 76,130 0 0 0 76,130 0 0
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