-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, bMYftTX7Y88fQR78MMP6Ni/VrMq7PIt2JSn/+uhXm6pBS4EcGh+lbxDl0X/Ggpbf mWMACWoQmtLDv3DN/ZG3Pg== 0000799033-95-000003.txt : 19950530 0000799033-95-000003.hdr.sgml : 19950530 ACCESSION NUMBER: 0000799033-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIRLEASE LTD CENTRAL INDEX KEY: 0000799033 STANDARD INDUSTRIAL CLASSIFICATION: 6172 IRS NUMBER: 943008908 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09259 FILM NUMBER: 95536477 BUSINESS ADDRESS: STREET 1: 733 FRONT ST STREET 2: P.O. BOX 193985 CITY: SAN FRANCISCO STATE: CA ZIP: 94119 BUSINESS PHONE: 4156279289 10-Q 1 QUARTERLY REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549-1004 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 1995 Commission file number 1-9259 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) Delaware 94-3008908 (State of Incorporation) (I.R.S. Employer Identification No.) 733 Front Street, P.O. Box 193985, San Francisco, California 94119 (Address of principal executive offices) (Zip Code) (415) 627-9289 (Registrant's telephone number, including area code) 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 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP =============================================== I N D E X Page No. Part I - Financial Information: Item 1. Financial Statements Balance Sheets -- March 31, 1995 and December 31, 1994 .....................3 Statements of Income -- Three months ended March 31, 1995 and 1994 ...............4 Condensed Statements of Cash Flows Three months ended March 31, 1995 and 1994 ...............5 Notes to Condensed Financial Statements ...................6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ............7 Part II - Other Information: Item 6. Exhibits and Reports on Form 8-K .........................9 Signatures ...............................................10 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP =============================================== BALANCE SHEETS
March 31, 1995 December 31, (In thousands except unit data) (Unaudited) 1994 - - - - - -------------------------------------------------------------------------------- ASSETS Cash ......................................... $ 1 $ 0 Finance leases - net ......................... 92,853 93,697 Operating leases - net ....................... 12,304 12,853 Notes receivable ............................. 1,409 673 Prepaid expenses and other assets ............ 306 319 -------- -------- Total assets ............................. $106,873 $107,542 ======== ======== LIABILITIES AND PARTNERS' EQUITY LIABILITIES Distribution payable to partners ............. $ 2,196 $ 2,196 Accounts payable and accrued liabilities ..... 1,355 1,259 Long-term notes payable ...................... 29,300 29,525 -------- -------- Total liabilities ........................ 32,851 32,980 -------- -------- COMMITMENTS AND CONTINGENCIES PARTNERS' EQUITY Limited partners (4,625,000 units outstanding) 73,282 73,816 General partner .............................. 740 746 -------- -------- Total partners' equity ................... 74,022 74,562 -------- -------- Total liabilities and partners' equity ... $106,873 $107,542 ======== ======== - - - - - -------------------------------------------------------------------------------- See NOTES TO CONDENSED FINANCIAL STATEMENTS
AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP =============================================== STATEMENTS OF INCOME
Three Months Ended (Unaudited; in thousands March 31, except per unit amounts) 1995 1994 - - - - - -------------------------------------------------------------------------------- REVENUES Finance lease income .................. $2,316 $2,508 Operating lease rentals ............... 751 670 Other income .......................... 36 13 ----- ----- Total revenues .................... 3,103 3,191 ----- ----- EXPENSES Interest .............................. 627 673 Depreciation - operating leases ....... 522 532 Fees to general partner ............... 195 209 Investor reporting .................... 54 70 General and administrative ............ 49 44 ----- ----- Total expenses .................... 1,447 1,528 ----- ----- Net Income ............................ $1,656 $1,663 ===== ===== Net Income Allocated To: General Partner ....................... $ 17 $ 17 ====== ====== Limited Partners ...................... $1,639 $1,646 ====== ====== Net Income Per Limited Partnership Unit $ 0.35 $ 0.36 ====== ====== - - - - - -------------------------------------------------------------------------------- See NOTES TO CONDENSED FINANCIAL STATEMENTS
AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP =============================================== STATEMENTS OF CASH FLOWS
Three Months Ended March 31, (Unaudited; in thousands) 1995 1994 - - - - - -------------------------------------------------------------------------------- NET CASH FLOWS FROM OPERATING ACTIVITIES ............... $ 2,314 $ 991 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES (Increase)/decrease in notes receivable ................ (736) 17 Rental receipts in excess of earned finance lease income 844 751 ------- ------- Net cash from investing activities ................... 108 768 ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Borrowing under long-term revolving loan facility ....... 678 1,216 Repayment of long-term debt ............................. (903) (828) Distributions paid to partners .......................... (2,196) (2,149) ------ ------ Net cash used by financing activities ................. (2,421) (1,761) ------ ------ Increase/(decrease) in cash ............................. 1 (2) Cash at beginning of period ............................. 0 2 ------- ------- Cash at end of period ................................ 1 0 ====== ====== ADDITIONAL INFORMATION Interest paid ........................................... $ 489 $ 506 ======= ======= - - - - - -------------------------------------------------------------------------------- See NOTES TO CONDENSED FINANCIAL STATEMENTS
AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP =============================================== NOTES TO CONDENSED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION --------------------- The accompanying unaudited condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of the Partnership, necessary to a fair statement of the results for the interim periods. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. The December 31, 1994 balance sheet included herein is derived from the audited financial statements included in the Partnership's Annual Report and incorporated by reference in the Form 10-K for the year ended December 31, 1994, but does not include all disclosures required by generally accepted accounting principles. The statements should be read in conjunction with the Organization and Significant Accounting Policies and other notes to financial statements included in the Partnership's Annual Report for the year ended December 31, 1994. 2. NET INCOME PER LIMITED PARTNERSHIP UNIT --------------------------------------- Net Income Per Limited Partnership Unit is computed by dividing the net income allocated to the Limited Partners by the weighted average units outstanding (4,625,000). AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP =============================================== MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources - - - - - ------------------------------- The partnership presently has four long-term debt facilities. At March 31, 1995, the following amounts were outstanding: $14.9 million on an 8.75% non-recourse note, collateralized by three aircraft leased to USAir; $6.9 million on a 7.4% non-recourse note collateralized by one aircraft leased to FedEx; and $7.5 million under a non-recourse long-term revolving declining variable interest loan facility collateralized by a fourth aircraft leased to USAir. There were no outstanding amounts under the fourth facility which is collateralized by the partnership's interest in the aircraft leased to Finnair Oy. Approximately $4.3 million of the revolving facilities' borrowing capacity remains available. Long-term borrowing at March 31, 1995 represented 19.6% of the original cost of aircraft presently owned by the partnership, including capitalized expenditures for upgrades. The terms of the Partnership Agreement permit debt to be at a level not exceeding 50% of such cost. In February, the partnership financed $731,000 to Continental Airlines for certain avionics and upgrades associated with the seven 737-200 aircraft on lease to Continental, bringing the outstanding notes receivable to $1,409,000. These loans, which were a condition of a Continental bankruptcy stipulation, will be repaid with interest over the two-year remaining life of the lease. The partnership's remaining obligation to fund loans to Continental under the bankruptcy stipulation is approximately $250,000. Declared cash distributions for the fourth quarter 1994 of $2,196,000 and fourth quarter 1993 of $2,149,000 were paid in the first quarter ending March 31, 1995 and March 31, 1994, respectively. Cash distributions paid for the fourth quarter 1994 compared to the previous year's quarter were $47,000 higher, based on the improved stability of the partnership's portfolio. In March 1995, the partnership declared a $0.47 per unit quarterly distribution amounting to $2,196,000 payable on May 15, 1995 to unitholders of record as of the close of business on March 31, 1995. Such distribution exceeded first quarter net income of $1,656,000 which resulted in a return of capital of $540,000. Results of Operations - - - - - --------------------- Net income for the quarter ended March 31, 1995 was $1,656,000, a decrease of $7,000, over the comparable 1994 three-month period. Revenues decreased slightly to $3,103,000 from $3,191,000. The increase in operating lease revenues of $81,000 in the first quarter was offset by a delay of income recognition on the Trans World Airlines ("TWA") lease (as explained below) and by the scheduled decrease in finance lease income. Expenses declined 5% from the prior year's quarter, reflecting decreases in almost all categories of expenses. TWA resumed its scheduled payments and was put back on accrual status in February and has agreed to remit the past-due amounts over the next several months. Income from these past due amounts will be recorded when received. The partnership's 50% interest in the MD-82 aircraft on lease to TWA represents 7.5% of total partnership assets at March 31, 1995. The partnership has been advised by Continental that one of the seven 737-200 aircraft was damaged while on the ground. Although rent continues, the partnership is working with Continental to quantify the extent of the damage to determine whether it will be more economical for them to repair the aircraft or declare it a total loss and pay off their obligations under the lease. The partnership's one-third interest in the seven aircraft on lease on Continental represents 3.3% of total assets at March 31, 1995. At March 31, 1995, all of the partnership's sixteen aircraft were on lease and all customers were current under their present lease agreements. PART II. OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K -------------------------------- (a) Exhibits 27. Financial Data Schedule (b) Reports on Form 8-K. None. SIGNATURES ========== 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. AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP By: Airlease Management Services, Inc. General Partner May 11, 1995 By: /s/David B. Gebler Date David B. Gebler President May 11, 1995 By: /s/Robert A. Keyes, Jr. Date Robert A. Keyes, Jr. Chief Financial Officer EX-27 2 ARTICLE 5 OF FDS-10Q
5 This schedule contains summary financial information extracted from SEC form 10-Q and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS DEC-31-1995 MAR-31-1995 1 0 106,566 0 0 0 0 0 106,873 0 29,300 0 0 0 74,022 106,873 3,103 3,103 0 522 0 0 627 1,656 0 1,656 0 0 0 1,656 0 0
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