UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[XX] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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-----------------------
For Quarter Ended June 30, 1996 Commission File No. 0-19134
American Income Partners V-C Limited Partnership
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(Exact name of registrant as specified in its charter)
Massachusetts 04-3077437
- ---------------------------------------- -----------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
98 North Washington Street, Boston, MA 02114
- ---------------------------------------- -----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 854-5800
----------------------------
- ------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
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
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APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court 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 No
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AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
INDEX
Page
------
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statement of Financial Position
at June 30, 1996 and December 31, 1995 3
Statement of Operations
for the three and six months ended June 30, 1996 and 1995 4
Statement of Cash Flows
for the six months ended June 30, 1996 and 1995 5
Notes to the Financial Statements 6-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-12
PART II. OTHER INFORMATION:
Items 1 - 6 13
2
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
STATEMENT OF FINANCIAL POSITION
June 30, 1996 and December 31, 1995
(Unaudited)
June 30, December 31,
1996 1995
----------- ------------
ASSETS
- ------
Cash and cash equivalents $1,476,367 $1,173,376
Rents receivable, net of allowance for
doubtful accounts of $15,000 68,052 178,631
Accounts receivable - affiliate 203,005 118,331
Equipment at cost, net of accumulated
depreciation of $18,032,481 and
$17,709,239 at June 30, 1996 and
December 31, 1995, respectively 3,831,658 4,508,469
---------- ----------
Total assets $5,579,082 $5,978,807
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Notes payable $ 600,854 $ 786,755
Accrued interest 4,399 5,944
Accrued liabilities 32,078 20,000
Accrued liabilities - affiliate 10,728 6,765
Deferred rental income 32,809 24,997
Cash distributions payable to partners 367,280 489,707
---------- ----------
Total liabilities 1,048,148 1,334,168
---------- ----------
Partners' capital (deficit):
General Partner (804,962) (799,277)
Limited Partnership Interests
(930,443 Units; initial purchase
price of $25 each) 5,335,896 5,443,916
---------- ----------
Total partners' capital 4,530,934 4,644,639
---------- ----------
Total liabilities and
partners' capital $5,579,082 $5,978,807
========== ==========
The accompanying notes are an integral part
of these financial statements.
3
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
for the three and six months ended June 30, 1996 and 1995
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
--------- ---------- ----------- -----------
Income:
Lease revenue $676,342 $ 941,027 $1,400,365 $1,886,106
Interest income 24,238 14,354 38,986 26,205
Gain on sale of equipment 10,642 294,587 89,244 582,011
-------- ---------- ---------- ----------
Total income 711,222 1,249,968 1,528,595 2,494,322
-------- ---------- ---------- ----------
Expenses:
Depreciation and amortization 344,561 544,235 704,225 1,201,364
Interest expense 17,118 41,953 30,436 96,774
Equipment management fees
- affiliate 30,486 38,791 71,079 76,698
Operating expenses - affiliate 20,287 23,852 102,000 62,792
-------- ---------- ---------- ----------
Total expenses 412,452 648,831 907,740 1,437,628
-------- ---------- ---------- ----------
Net income $298,770 $ 601,137 $ 620,855 $1,056,694
======== ========== ========== ==========
Net income
per limited partnership unit $ 0.31 $ 0.61 $ 0.63 $ 1.08
======== ========== ========== ==========
Cash distributions declared
per limited partnership unit $ 0.37 $ 0.50 $ 0.75 $ 1.00
======== ========== ========== ==========
The accompanying notes are an integral part
of these financial statements.
4
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS
for the six months ended June 30, 1996 and 1995
(Unaudited)
1996 1995
------------ ------------
Cash flows from (used in) operating
activities:
Net income $ 620,855 $ 1,056,694
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation and amortization 704,225 1,201,364
Gain on sale of equipment (89,244) (582,011)
Changes in assets and liabilities
Decrease (increase) in:
rents receivable 110,579 78,475
accounts receivable - affiliate (84,674) 77,251
Increase (decrease) in:
accrued interest (1,545) (7,572)
accrued liabilities 12,078 (500)
accrued liabilities - affiliate 3,963 (58,268)
deferred rental income 7,812 (1,669)
----------- -----------
Net cash from operating activities 1,284,049 1,763,764
----------- -----------
Cash flows from (used in) investing
activities:
Purchase of equipment (65,700) --
----------- -----------
Proceeds from equipment sales 127,530 721,059
----------- -----------
Net cash from investing activities 61,830 721,059
----------- -----------
Cash flows used in financing activities:
Principal payments - notes payable (185,901) (1,075,199)
Distributions paid (856,987) (1,101,840)
----------- -----------
Net cash used in financing activities (1,042,888) (2,177,039)
----------- -----------
Net increase in cash and cash
equivalents 302,991 307,784
Cash and cash equivalents at beginning
of period 1,173,376 648,744
----------- -----------
Cash and cash equivalents at end of
period $ 1,476,367 $ 956,528
=========== ===========
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest $ 31,981 $ 104,346
=========== ===========
The accompanying notes are an integral part
of these financial statements.
5
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
Notes to the Financial Statements
June 30, 1996
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The financial statements presented herein are prepared in conformity
with generally accepted accounting principles and the instructions for preparing
Form 10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
Commission and are unaudited. As such, these financial statements do not
include all information and footnote disclosures required under generally
accepted accounting principles for complete financial statements and,
accordingly, the accompanying financial statements should be read in conjunction
with the footnotes presented in the 1995 Annual Report. Except as disclosed
herein, there has been no material change to the information presented in the
footnotes to the 1995 Annual Report.
In the opinion of management, all adjustments (consisting of normal
and recurring adjustments) considered necessary to present fairly the financial
position at June 30, 1996 and December 31, 1995 and results of operations for
the three and six month periods ended June 30, 1996 and 1995 have been made and
are reflected.
NOTE 2 - CASH
- -------------
At June 30, 1996, the Partnership had $1,465,000 invested in reverse
repurchase agreements secured by U.S. Treasury Bills or interests in U.S.
Government securities.
NOTE 3 - REVENUE RECOGNITION
- ----------------------------
Rents are payable to the Partnership monthly, quarterly or semi-
annually and no significant amounts are calculated on factors other than the
passage of time. The leases are accounted for as operating leases and are
noncancellable. Rents received prior to their due dates are deferred. Future
minimum rents of $3,533,837 are due as follows:
For the year ending June 30, 1997 $2,184,668
1998 976,774
1999 317,011
2000 31,648
2001 23,736
----------
Total $3,533,837
==========
6
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
Notes to the Financial Statements
(Continued)
NOTE 4 - EQUIPMENT
- ------------------
The following is a summary of equipment owned by the Partnership at
June 30, 1996. In the opinion of the American Finance Group ("AFG"), the
acquisition cost of the equipment did not exceed its fair market value.
Lease Term Equipment
Equipment Type (Months) at Cost
- -------------------------- ----------------- -------------
Aircraft 1-36 $ 9,912,284
Vessels 57 2,782,137
Construction & mining 6-84 2,550,457
Communications 12-84 1,790,243
Computers and peripherals 12-60 1,727,818
Retail store fixtures 12-72 1,347,040
Materials handling 1-60 948,640
Furniture and fixtures 84 382,117
Motor vehicles 36 238,583
Locomotives 46-78 184,820
------------
Total equipment cost 21,864,139
Accumulated depreciation (18,032,481)
------------
Equipment, net of accumulated depreciation $ 3,831,658
============
At June 30, 1996, the Partnership's equipment portfolio included equipment
having a proportionate original cost of $14,535,873, representing approximately
66% of total equipment cost.
The summary above includes equipment held for re-lease or sale with a cost
and net book value of approximately $1,653,000 and $427,000, respectively, at
June 30, 1996. The equipment includes the Partnership's proportionate interest
in a Boeing 727-251 Advanced aircraft (the "Aircraft"), formerly leased to
Northwest Airlines, Inc., having a cost and net book value of $583,038 and
$56,943, respectively, at June 30, 1996. This aircraft was returned upon
expiration of its lease term on November 30, 1995 and is currently undergoing
heavy maintenance expected to cost the Partnership approximately $36,000, all of
which was accrued during the three months ended March 31, 1996. The Partnership
entered into a new 28-month lease agreement with Transmeridian Airlines to re-
lease the Aircraft at a base rent to the Partnership of $4,290 per month,
effective upon completion of the heavy maintenance. In addition, at June 30,
1996 the Partnership's portfolio included a proportionate interest in two Boeing
727-251 Advanced aircraft which were sold in July 1996 (see Note 7).
NOTE 5 - RELATED PARTY TRANSACTIONS
- -----------------------------------
All operating expenses incurred by the Partnership are paid by AFG on behalf
of the Partnership and AFG is reimbursed at its actual cost for such
expenditures. Fees and other costs incurred during each of the six month
periods ended June 30, 1996 and 1995, which were paid or accrued by the
Partnership to AFG or its Affiliates, are as follows:
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AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
Notes to the Financial Statements
(Continued)
1996 1995
-------- --------
Equipment management fees $ 71,079 $ 76,698
Administrative charges 10,500 10,500
Reimbursable operating expenses
due to third parties 91,500 52,292
-------- --------
Total $173,079 $139,490
======== ========
All rents and proceeds from the sale of equipment are paid directly to either
AFG or to a lender. AFG temporarily deposits collected funds in a separate
interest-bearing escrow account prior to remittance to the Partnership. At June
30, 1996, the Partnership was owed $203,005 by AFG for such funds and the
interest thereon. These funds were remitted to the Partnership in July 1996.
NOTE 6 - NOTES PAYABLE
- ----------------------
Notes payable at June 30, 1996 consisted of installment notes of $600,854
payable to banks and institutional lenders. All of the installment notes are
non-recourse, two notes with interest rates of 9.5% and one note which bears a
fluctuating interest rate based on the London Inter-Bank Offered Rate ("LIBOR")
plus 1.5%. At June 30, 1996, the applicable LIBOR rate was approximately 7%.
The installment notes are collateralized by the equipment and assignment of the
related lease payments and will be fully amortized by noncancellable rents. The
carrying amount of notes payable approximates fair value at June 30, 1996.
The annual maturities of the installment notes payable are as follows:
For the year ending June 30, 1997 $381,640
1998 219,214
--------
Total $600,854
=========
NOTE 7 - SUBSEQUENT EVENT
- -------------------------
During July 1996, the Partnership sold its interest in two Boeing 727-251
Advanced aircraft to the lessee, Northwest Airlines, Inc. The Partnership
received lease termination rents of $872,305 and sale proceeds of $2,019,055. At
June 30, 1996, the net carrying value of these aircraft to the Partnership was
$1,238,414.
8
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
- --------------------------------------------------------------------------------
of Operations.
- --------------
Three and six months ended June 30, 1996 compared to the three and six months
- -----------------------------------------------------------------------------
ended June 30, 1995:
- --------------------
Overview
- --------
As an equipment leasing partnership, the Partnership was organized to acquire
a diversified portfolio of capital equipment subject to lease agreements with
third parties. The Partnership was designed to progress through three principal
phases: acquisitions, operations, and liquidation. During the operations
phase, a period of approximately six years, all equipment in the Partnership's
portfolio will progress through various stages. Initially, all equipment will
generate rental revenues under primary term lease agreements. During the life
of the Partnership, these agreements will expire on an intermittent basis and
equipment held pursuant to the related leases will be renewed, re-leased or
sold, depending on prevailing market conditions and the assessment of such
conditions by AFG to obtain the most advantageous economic benefit. Over time,
a greater portion of the Partnership's original equipment portfolio will become
available for remarketing and cash generated from operations and from sales or
refinancings will begin to fluctuate. Ultimately, all equipment will be sold
and the Partnership will be dissolved. The Partnership's operations commenced
in 1990.
Results of Operations
- ---------------------
For the three and six months ended June 30, 1996, the Partnership recognized
lease revenue of $676,342 and $1,400,365, respectively, compared to $941,027 and
$1,886,106 for the same periods in 1995. The decrease in lease revenue from
1995 to 1996 was expected and resulted principally from primary lease term
expirations and the sale of equipment. The Partnership also earns interest
income from temporary investments of rental receipts and equipment sales
proceeds in short-term instruments.
The Partnership's equipment portfolio includes certain assets in which the
Partnership holds a proportionate ownership interest. In such cases, the
remaining interests are owned by AFG or an affiliated equipment leasing program
sponsored by AFG. Proportionate equipment ownership enables the Partnership to
further diversify its equipment portfolio by participating in the ownership of
selected assets, thereby reducing the general levels of risk which could result
from a concentration in any single equipment type, industry or lessee. The
Partnership and each affiliate individually report, in proportion to their
respective ownership interests, their respective shares of assets, liabilities,
revenues, and expenses associated with the equipment.
For the three months ended June 30, 1996, the Partnership sold equipment
having a net book value of $14,658 to existing lessees and third parties. These
sales resulted in a net gain, for financial statement purposes, of $10,642
compared to a net gain of $294,587 on equipment having a net book value of
$48,243 for the same period in 1995.
For the six months ended June 30, 1996, the Partnership sold equipment having
a net book value of $38,286 to existing lessees and third parties. These sales
resulted in a net gain, for financial statement purposes, of $89,244 compared to
a net gain of $582,011 on equipment having a net book value of $139,048 for the
same period in 1995.
It cannot be determined whether future sales of equipment will result in a
net gain or a net loss to the Partnership, as such transactions will be
dependent upon the condition and type of equipment being sold and its
marketability at the time of sale. In addition, the amount of gain or loss
reported for financial statement purposes is partly a function of the amount of
accumulated depreciation associated with the equipment being sold.
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AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including AFG's ability to sell and re-lease
equipment. Changing market conditions, industry trends, technological advances,
and many other events can converge to enhance or detract from asset values at
any given time. AFG attempts to monitor these changes in order to identify
opportunities which may be advantageous to the Partnership and which will
maximize total cash returns for each asset.
The total economic value realized upon final disposition of each asset is
comprised of all primary lease term revenue generated from that asset, together
with its residual value. The latter consists of cash proceeds realized upon the
asset's sale in addition to all other cash receipts obtained from renting the
asset on a re-lease, renewal or month-to-month basis. The Partnership
classifies such residual rental payments as lease revenue. Consequently, the
amount of gain or loss reported in the financial statements is not necessarily
indicative of the total residual value the Partnership achieved from leasing the
equipment.
Depreciation and amortization expense for the three and six months ended June
30, 1996 was $344,561 and $704,225, respectively, compared to $544,235 and
$1,201,364 for the same periods in 1995. For financial reporting purposes, to
the extent that an asset is held on primary lease term, the Partnership
depreciates the difference between (i) the cost of the asset and (ii) the
estimated residual value of the asset on a straight-line basis over such term.
For purposes of this policy, estimated residual values represent estimates of
equipment values at the date of primary lease expiration. To the extent that an
asset is held beyond its primary lease term, the Partnership continues to
depreciate the remaining net book value of the asset on a straight-line basis
over the asset's remaining economic life.
Interest expense was $17,118 and $30,436, or 2.5% and 2.2% of lease revenue
for the three and six months ended June 30, 1996, respectively, compared to
$41,953 and $96,774, or 4.5% and 5.1% of lease revenue for the same periods in
1995. Interest expense in future periods will decline in amount and as a
percentage of lease revenue as the principal balance of notes payable is reduced
through the application of rent receipts to outstanding debt.
Management fees were 4.5% and 5.1% of lease revenue for the three and
six month periods ended June 30, 1996, respectively, compared to 4.1% of lease
revenue for each of the same periods in 1995. Management fees during the six
months ended June 30, 1996 include $7,731, resulting from an underaccrual in
1995. Management fees are based on 5% of gross lease revenue generated by
operating leases and 2% of gross lease revenue generated by full payout leases.
Operating expenses consist principally of administrative charges,
professional service costs, such as audit and legal fees, as well as printing,
distribution and remarketing expenses. In certain cases, equipment storage or
repairs and maintenance costs may be incurred in connection with equipment being
remarketed. Collectively, operating expenses represented 3% and 7.3% of lease
revenue for the three and six months ended June 30, 1996, respectively, compared
to 2.5% and 3.3% of lease revenue for the same periods in 1995. The overall
increase in operating expenses from 1995 to 1996 was due primarily to heavy
maintenance costs incurred or accrued in connection with certain of the
Partnership's Boeing 727 aircraft. The amount of future operating expenses
cannot be predicted with certainty; however, such expenses are usually higher
during the acquisition and liquidation phases of a partnership. Other
fluctuations typically occur in relation to the volume and timing of remarketing
activities.
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AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
Liquidity and Capital Resources and Discussion of Cash Flows
- ------------------------------------------------------------
The Partnership by its nature is a limited life entity which was established
for specific purposes described in the preceding "Overview". As an equipment
leasing program, the Partnership's principal operating activities derive from
asset rental transactions. Accordingly, the Partnership's principal source of
cash from operations is provided by the collection of periodic rents. These cash
inflows are used to satisfy debt service obligations associated with leveraged
leases, and to pay management fees and operating costs. Operating activities
generated net cash inflows of $1,284,049 and $1,763,764 for the six months ended
June 30, 1996 and 1995, respectively. Future renewal, re-lease and equipment
sale activities will continue to cause a gradual decline in the Partnership's
lease revenue and corresponding sources of operating cash. Overall, expenses
associated with rental activities, such as management fees, and net cash flow
from operating activities will also continue to decline as the Partnership
experiences a higher frequency of remarketing events.
Ultimately, the Partnership will dispose of all assets under lease. This
will occur principally through sale transactions whereby each asset will be
sold to the existing lessee or to a third party. Generally, this will occur
upon expiration of each asset's primary or renewal/re-lease term. In certain
instances, casualty or early termination events may result in the disposal of an
asset. Such circumstances are infrequent and usually result in the collection
of stipulated cash settlements pursuant to terms and conditions contained in the
underlying lease agreements.
Cash expended for equipment acquisitions and cash realized from asset
disposal transactions are reported under investing activities on the
accompanying Statement of Cash Flows. During the six months ended June 30, 1996,
the Partnership expended $65,700 to replace certain aircraft engines to
facilitate the re-lease of this aircraft to Transmeridian Airlines. There were
no equipment acquisitions during the same period in 1995. During the six months
ended June 30, 1996, the Partnership realized $127,530 in equipment sale
proceeds compared to $721,059 for the same period in 1995. Future inflows of
cash from asset disposals will vary in timing and amount and will be influenced
by many factors including, but not limited to, the frequency and timing of lease
expirations, the type of equipment being sold, its condition and age, and future
market conditions.
On November 30, 1995, upon the expiration of its lease term, Northwest
Airlines, Inc., returned a Boeing 727-251 Advanced aircraft (the "Aircraft") in
which the Partnership has a 6% ownership interest with a cost and net book value
to the Partnership of $583,038 and $56,943, respectively, at June 30, 1996. The
Aircraft is currently undergoing heavy maintenance expected to cost the
Partnership approximately $36,000, all of which was accrued during the three
months ended March 31, 1996. The Partnership entered into a new 28-month lease
agreement with Transmeridian Airlines to re-lease the Aircraft at a base rent to
the Partnership of $4,290 per month, effective upon completion of the heavy
maintenance.
The Partnership obtained long-term financing in connection with certain
equipment leases. The repayments of principal related to such indebtedness are
reported as a component of financing activities. Each note payable is
recourse only to the specific equipment financed and to the minimum rental
payments contracted to be received during the debt amortization period (which
period generally coincides with the lease rental term). As rental payments are
collected, a portion or all of the rental payment is used to repay the
associated indebtedness. In future periods, the amount of cash used to repay
debt obligations will continue to decline as the principal balance of notes
payable is reduced through the collection and application of rents.
Cash distributions to the General Partner and Recognized Owners are declared
and generally paid within fifteen days following the end of each calendar
quarter. The payment of such distributions is presented as a component of
financing activities. For the six months ended June 30, 1996, the Partnership
declared total cash distributions of Distributable Cash From Operations and
Distributable Cash From Sales and Refinancings of $734,560. In accordance with
the Amended and Restated Agreement and Certificate of Limited Partnership,
11
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
the Recognized Owners were allocated 95% of these distributions, or $697,832,
and the General Partner was allocated 5%, or $36,728. The second quarter 1996
cash distribution was paid on July 15, 1996.
Cash distributions paid to the Recognized Owners consist of both a return of
and a return on capital. To the extent that cash distributions consist of Cash
From Sales or Refinancings, substantially all of such cash distributions should
be viewed as a return of capital. Cash distributions do not represent and are
not indicative of yield on investment. Actual yield on investment cannot be
determined with any certainty until conclusion of the Partnership and will be
dependent upon the collection of all future contracted rents, the generation of
renewal and/or re-lease rents, and the residual value realized for each asset at
its disposal date. Future market conditions, technological changes, the ability
of AFG to manage and remarket the assets, and many other events and
circumstances, could enhance or detract from individual asset yields and the
collective performance of the Partnership's equipment portfolio.
The future liquidity of the Partnership will be influenced by the foregoing
and will be greatly dependent upon the collection of contractual rents and the
outcome of residual activities. In July 1996, the Partnership will collect cash
of $2,891,360, consisting of lease termination rents equal to $872,305 and sale
proceeds equal to $2,019,055, from the sale of its interests in two Boeing 727-
Advanced jet aircraft to the lessee, Northwest Airlines, Inc. The amount of
cash available for distribution to the Partners in future periods will be
affected by this and other remarketing activities, which, depending upon timing,
the amounts realized and other considerations, such as market conditions and any
cash reserves retained by the Partnership, may cause the level of future
quarterly cash distributions to fluctuate. Further, equipment lease expirations
and asset disposals will cause the Partnership's net cash from operating
activities to diminish over time. In addition, the Partnership may be required
to incur asset refurbishment or upgrade costs in connection with future
remarketing activities. Notwithstanding such circumstances, the General Partner
anticipates that cash proceeds resulting from the Partnership's rental and
remarketing activities will satisfy the Partnership's future expense
obligations.
12
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
FORM 10-Q
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Response: None
Item 2. Changes in Securities
Response: None
Item 3. Defaults upon Senior Securities
Response: None
Item 4. Submission of Matters to a Vote of Security Holders
Response: None
Item 5. Other Information
Response: None
Item 6(a). Exhibits
Response: None
Item 6(b). Reports on Form 8-K
Response: None
13
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below on behalf of the registrant and in the capacity and
on the date indicated.
AMERICAN INCOME PARTNERS V-C LIMITED PARTNERSHIP
By: AFG Leasing IV Incorporated, a Massachusetts
corporation and the General Partner of the
Registrant.
By: /s/ Michael J. Butterfield
---------------------------------------------------------
Michael J. Butterfield
Treasurer of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Accounting Officer)
Date: August 14, 1996
---------------------------------------------------------
By: /s/ Gary M. Romano
---------------------------------------------------------
Gary M. Romano
Clerk of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Financial Officer)
Date: August 14, 1996
---------------------------------------------------------
14