UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1998
OR
[ ] 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 333-11243
CAPITA PREFERRED FUNDING L.P.
A DELAWARE I.R.S. EMPLOYER IDENTIFICATION
LIMITED PARTNERSHIP No. 22-3467161
c/o AT&T Capital Corporation
44 Whippany Road, Morristown, New Jersey 07962-1983
Telephone Number 973-397-3000
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THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I(1)(a) AND
(b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE
FORMAT PURSUANT TO GENERAL INSTRUCTION I(2).
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 [ ]
PART I - FINANCIAL INFORMATION
ITEM 1. Financial statements.
CAPITA PREFERRED FUNDING L.P.
STATEMENTS OF INCOME
(Dollars in thousands)
(Unaudited)
For the three months
ended March 31,
1998 1997
---- ----
REVENUES-Interest Income $5,362 $5,358
------ ------
Net income $5,362 $5,358
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The accompanying notes are an integral part of these Financial Statements.
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CAPITA PREFERRED FUNDING L.P.
BALANCE SHEETS
(Dollars in thousands)
March 31,
1998 December 31,
(unaudited) 1997
----------- ------------
ASSETS:
Debentures receivable from Affiliates $240,146 $240,146
Other assets 2,434 2,434
-------- --------
Total Assets 242,580 242,580
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PARTNERS' CAPITAL:
General Partner's Interest 36,394 36,394
Limited Partner's Interest 206,186 206,186
-------- --------
Total Partners' Capital $242,580 $242,580
======== ========
The accompanying notes are an integral part of these Financial Statements.
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CAPITA PREFERRED FUNDING L.P.
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
For the three months
ended March 31,
1998 1997
---- ----
Cash Flow from Operating Activities:
Net Income $ 5,362 $ 5,358
------- -------
Net Cash provided from Operating Activities 5,362 5,358
------- -------
Cash Flow from Financing Activities:
Distribution to Limited Partner (4,670) (4,670)
Distribution to General Partner (692) (688)
------- -------
Net Cash provided by Financing
activities (5,362) (5,358)
------- -------
Net change in cash and cash equivalents 0 0
Cash and cash equivalents at beginning
of period 0 0
------- -------
Cash and cash equivalents at end
of period $ 0 $ 0
======= =======
The accompanying notes are an integral part of these Financial Statements.
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CAPITA PREFERRED FUNDING L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying unaudited financial statements have been prepared by
Capita Preferred Funding L.P. (the "Partnership") pursuant to the rules and
regulations of the Securities and Exchange Commission and, in the opinion of
management, reflect all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of the results of operations, financial
position and cash flows for each period shown. The results for interim periods
are not necessarily indicative of financial results for the full year. These
unaudited financial statements should be read in conjunction with the audited
financial statements and notes thereto included in the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1997.
2. 1998 Sale of AT&T Capital
On January 12, 1998, all of AT&T Capital Corporation's (the "General
Partner")outstanding shares of common stock were purchased by Newcourt Credit
Group Inc., an Ontario corporation ("Newcourt") in a transaction accounted for
under the purchase method of accounting. The General Partner currently is an
indirect wholly-owned subsidiary of Newcourt.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS. (Dollars in thousands)
Results of Operations and Changes in Cash Flows
On March 31, 1998 and March 31, 1997, Capita Preferred Funding L.P. (the
"Partnership") made its scheduled quarterly cash distributions of $4,670 (annual
rate of 9.06%) to Capita Preferred Trust, the Partnership's limited partner. On
those same dates, the Partnership received its scheduled debenture interest
income payments (annual rate of 8.88%) from AT&T Capital Corporation (the
"General Partner") and two wholly-owned subsidiaries of the General Partner
aggregating $5,331. During the first quarter of 1998 and 1997, the Partnership
earned interest income of approximately $30 and $27, respectively, on short-term
investments. The Partnership distributes the excess of the interest income on
debentures and short-term investments over cash distributions to the General
Partner. For the first quarter of 1998 and 1997, the Partnership distributed
$692 and $688, respectively, to the General Partner.
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PART II
CAPITA PREFERRED FUNDING L.P.
PART II - OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K.
a) Exhibits:
Exhibit Number
27 Financial Data Schedule
b) Current Reports on Form 8-K:
None
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
CAPITA PREFERRED FUNDING L.P.
By: AT&T Capital Corporation
General Partner
DANIEL A. JAUERNIG
-----------------------------
By: Daniel A. Jauernig
Group President and
Chief Financial Officer
of AT&T Capital Corporation
May 13, 1998
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EXHIBIT INDEX
EXHIBITS
Exhibit
Number Description
27. Financial Data Schedule
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