SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
/X/ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the year ended December 31, 2002
/ / 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 0-20131
Fidelity Leasing Income Fund VI, L.P.
______________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 23-2540929
______________________________________________________________________
(State of Organization) (I.R.S. Employer Identification No.)
1845 Walnut Street, Suite 1000, Philadelphia, Pennsylvania 19103
______________________________________________________________________
(Address of principal executive offices) (Zip Code)
(215) 574-1636
______________________________________________________________________
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12 (b) of the Act:
Name of Each Exchange
Title of Each Class on Which Registered
None Not applicable
Securities registered pursuant to Section 12 (g) of the Act:
Limited Partnership Interests
Title of Class
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 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____
The number of outstanding limited partnership units of the Registrant at
December 31, 2002 is 75,264.
There is no public market for these securities.
The index of Exhibits is located on page 12.
1
PART I
Item 1. BUSINESS
Fidelity Leasing Income Fund VI, L.P. (the "Fund"), a Delaware limited
partnership, was organized in 1989 and acquires computer equipment including
printers, tape and disk storage devices, data communications equipment,
computer terminals, technical workstations, networking equipment, as well as
other electronic equipment that is leased to third parties on a short-term
basis. The Fund's principal objective is to generate leasing revenues for
distribution. The Fund manages the equipment, releasing or disposing of equip-
ment as it comes off lease in order to achieve its principal objective. The
Fund does not borrow funds to purchase equipment.
The Fund generally acquires equipment subject to a lease. Purchases of
equipment for lease are typically made through equipment leasing brokers,
under a sale-leaseback arrangement directly from lessees owning equipment or
from the manufacturer either pursuant to a purchase agreement relating to
significant quantities of equipment or on an ad hoc basis to meet the needs
of a particular lessee.
A brief description of the types of equipment in which the Fund has
invested as of December 31, 2002, together with information concerning the
users of such equipment is contained in Item 2, following.
The Fund does not have any employees. All persons who work on the Fund
are employees of the General Partner.
Item 2. PROPERTIES
The following schedules detail the type, aggregate purchase price and
percentage of the various types of equipment leased by the Fund under the
operating and direct financing lease methods as of December 31, 2002:
Operating Leases:
Purchase Price Percentage of
Type of Equipment of Equipment Total Equipment
PCB Assembly Equipment $775,391 88.81%
Tape Storage Systems 97,693 11.19
________ ______
Totals $873,084 100.00%
======== ======
Direct Financing Leases:
Purchase Price Percentage of
Type of Equipment of Equipment Total Equipment
Electron Microscopes $ 964,081 35.22%
PCB Assembly Equipment 895,315 32.70
Disk Storage Systems 753,542 27.53
Printers 84,546 3.09
Other 40,147 1.46
__________ ______
Totals $2,737,631 100.00%
========== ======
2
Item 2. PROPERTIES (Continued)
The following schedules detail the type of business, aggregate purchase
price and percentage of equipment usage by industrial classification for
equipment leased by the Fund under the operating and direct financing methods
as of December 31, 2002:
Operating Leases:
Purchase Price Percentage of
Type of Business of Equipment Total Equipment
Manufacturing/Refining $775,391 88.81%
Diversified Financial/Banking/Insurance 97,693 11.19
________ ______
Totals $873,084 100.00%
======== ======
Direct Financing Leases:
Purchase Price Percentage of
Type of Business of Equipment Total Equipment
Manufacturing/Refining $1,943,942 71.01%
Retailing/Consumer Goods 693,040 25.32
Education 71,516 2.61
Diversified Financial/Banking/Insurance 29,133 1.06
__________ ______
Totals $2,737,631 100.00%
========== ======
Average Initial Term of Leases (in months): 46
Item 3. LEGAL PROCEEDINGS
Not applicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
3
PART II
Item 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
(a) The Fund's limited partnership units are not publicly traded.
There is no market for the Fund's limited partnership units and it
is unlikely that any will develop.
(b) Number of Equity Security Holders:
Number of Partners
Title of Class as of December 31, 2002
Limited Partnership Interests 2,726
General Partnership Interest 1
Item 6. SELECTED FINANCIAL DATA
For the Years Ended December 31,
2002 2001 2000 1999 1998
Total Income $497,806 $886,390 $1,369,434 $1,844,586 $6,764,079
Net Income (Loss) (54,926) 333,548 412,064 429,662 245,744
Distributions to Partners 4,780,000 420,000 360,000 300,000 300,000
Net Income (Loss) per
Equivalent Limited
Partnership Unit (2.29) 10.42 13.75 14.42 8.18
Weighted Average Number
of Equivalent Limited
Partnership Units
Outstanding During
the Year 23,732 29,713 29,679 29,502 29,663
December 31,
2002 2001 2000 1999 1998
Total Assets $4,538,785 $9,296,409 $9,381,474 $9,389,226 $9,392,891
Equipment under
Operating Leases and
Equipment Held for
Sale or Lease (Net) 798,903 801,290 1,035,279 1,756,936 2,744,228
Net Investment in
Direct Financing Leases 775,005 4,008,473 6,111,432 5,426,656 3,545,522
Limited Partnership
Units 75,264 75,264 75,264 75,264 75,294
Limited Partners 2,726 2,706 2,692 2,678 2,670
4
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
Fidelity Leasing Income Fund VI, L.P. had revenues of $497,806, $886,390,
and $1,369,434 for the years ended December 31, 2002, 2001 and 2000, respect-
tively. Earned income from direct financing leases and rental income from the
leasing of equipment accounted for 75%, 81% and 88% of total revenues in 2002,
2001 and 2000, respectively. The decrease in total revenues in 2002 and 2001
was partially attributable to the decrease in earned income on direct financing
leases. This account decreased in 2002 because of the amortization of unearned
income using the interest method as well as the early termination of certain
direct financing leases during 2002 and late 2001. The decrease in this
account in 2001 resulted from the net effect of the amortization of the
unearned income using the interest method and the earned income recognized
on new investments in direct financing leases made in 2001 and 2000. The
Fund invested $40,147, $919,992 and $2,669,441 in direct financing leases
during the years ended December 31, 2002, 2001 and 2000, respectively.
Additionally, the decrease in rental income contributed to the decrease
in total revenues in 2002 and 2001. In 2002, rental income decreased by
approximately $85,000 because of equipment that terminated and was sold
during 2001. In 2001, rental income decreased by approximately $442,000
because of equipment that came off lease or terminated and was sold during
both 2001 and 2000. The variation in interest income also affected the
overall decrease in revenues in 2002 and 2001. Interest income decreased in
2002 and increased in 2001 because of fluctuating cash balances available for
investment by the Fund. In 2002, cash balances decreased because of the cash
distributions made to partners during the year. In 2001, cash balances in-
creased because of rental proceeds received on direct financing leases.
Furthermore, the decrease in net gain on sale of equipment contributed to
the overall decrease in revenues during 2002 and 2001. There was no gain on
sale of equipment recognized for the twelve months ended December 31, 2002.
The Fund recognized a net gain on sale of equipment of $46,260 and $52,789 for
the years ended December 31, 2001 and 2000, respectively. The variation in
other income during 2002 and 2001 also affected the amount of the total de-
crease in revenues. Other income increased in 2002 because of late charges
collected on delinquent rentals received by the Fund. The increase in this
account lowered the total decrease in revenues in 2002. In 2001, other income
decreased because of the decrease in transfer fees collected on investor
account transfers made in 2001. The decrease in this account contributed to
the overall decrease in revenues in 2002.
Expenses were $552,732, $552,842 and $957,370 for the years ended
December 31, 2002, 2001 and 2000, respectively. Depreciation expense comprised
25%, 34% and 60% of total expenses in 2002, 2001 and 2000, respectively.
The decrease in expenses in 2002 and 2001 was primarily attributable to the
decrease in depreciation expense. Depreciation expense decreased in 2002 and
2001 because of equipment that came off lease or terminated and was sold during
2002 and 2001. The decrease in management fee to related party also contri-
buted to the decrease in total expenses in both 2002 and 2001. This account
decreased as a result of the decrease in rentals earned on both operating and
direct financing leases during 2002 and 2001. Additionally, the decrease in
write-down of equipment to net realizable value also accounted for the decrease
in total expenses during 2001. Currently, the Fund's practice is to review the
recoverability of its undepreciated costs of rental equipment quarterly. The
5
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Results of Operations (Continued)
Fund's policy, as part of this review, is to analyze such factors as releasing
of equipment, technological developments and information provided in third
party publications. There was no charge to write-down of equipment to net
realizable value for the years ended December 31, 2002 and 2001. In 2000,
approximately $16,000 was charged to write-down of equipment to net realizable
value. In accordance with accounting principles generally accepted in the
United States of America, the Fund writes down its rental equipment to its
estimated net realizable value when the amounts are reasonably estimated and
only recognizes gains, if any, upon actual sale of its rental equipment. Any
future losses are dependent upon unanticipated technological developments
affecting the types of equipment in the portfolio in subsequent years.
General and administrative expense increased during the twelve months ended
December 31, 2002 and 2001 because of the increase in the expenses incurred to
operated the Fund on a daily basis. General and administrative expense to
related party increased in 2002 and decreased in 2001 as a result of the
fluctuation in expenses incurred by the General Partner or its parent company
for services and materials provided to the Fund during these years. The change
in both general and administrative expense and general and administrative
expense to related party affected the decrease in total expenses during these
years.
The Fund's net income (loss) was ($54,926), $333,548 and $412,064 for
the years ended December 31, 2002, 2001 and 2000, respectively. The earnings
(loss) per equivalent limited partnership unit, after earnings (loss)
allocated to the General Partner, were ($2.29), $10.42 and $13.75 for the
years ended December 31, 2002, 2001 and 2000, respectively. The weighted
average number of equivalent limited partnership units outstanding were
23,732, 29,713 and 29,679 for the years ended December 31, 2002, 2001 and
2000, respectively.
The Fund generated cash from operations, for the purpose of determining
cash available for distribution, of $82,706, $474,217 and $950,373 during
the years ended December 31, 2002, 2001 and 2000, respectively. The Fund
distributed $2,710,000, $315,000 and $285,000 during the period April 1
through December 31, 2002, 2001 and 2000, respectively. During the first
quarter of 2003, 2002 and 2001, the Fund distributed $1,070,000, $2,070,000
and $105,000 to partners, respectively. For financial statement purposes,
the Fund records cash distributions to partners on a cash basis in the period
in which they are paid.
Analysis of Financial Condition
The Fund is currently in the process of dissolution. As provided in the
Restated Limited Partnership Agreement, the assets of the Fund shall be
liquidated as promptly as is consistent with obtaining their fair value.
During this time, the Fund will continue to look for opportunities to purchase
equipment under operating leases or invest in direct financing leases for
lease terms consistent with the plan of dissolution. The Fund purchased
$135,245 and $10,034 of equipment during 2002 and 2001, respectively. There
6
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Results of Operations (Continued)
was no equipment purchased in 2000. The Fund invested in $40,147, $919,992 and
$2,669,441 of direct financing leases during the twelve months ended December
31, 2002, 2001 and 2000, respectively.
The cash position of the Fund is reviewed daily and cash is invested on a
short-term basis.
The Fund's cash from operations is expected to continue to be adequate to
cover all operating expenses and contingencies during the next twelve month
period.
Recent Accounting Pronouncements
In June 2001, SFAS No. 143, "Accounting for Asset Retirement Obligations"
was issued. SFAS No. 143 addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and
the associated asset retirement costs. Management expects to adopt SFAS
No. 143 on January 1, 2003 and is currently determining the impact of this
standard on its financial statements.
In April 2002, SFAS No. 145, "Rescission of FASB Statements No. 4, 44 and
64 and Amendment of FASB Statement No. 13, and Technical Corrections" was
issued. SFAS No. 145 eliminates extraordinary accounting treatment for re-
porting gain or loss on debt extinguishment, and amends other existing pro-
nouncements to make technical corrections, clarify meanings or describe their
applicability under changed conditions. The adoption of SFAS No. 145 did not
have a material effect on the Fund's financial position, results of operations
or cash flows.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The response to this Item is submitted as a separate section of this
report commencing on page F-1.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
Not applicable.
7
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The General Partner of the Fund is LEAF Financial Corporation (LEAF).
LEAF is a wholly owned subsidiary of Resource Leasing, Inc. which is a wholly
owned subsidiary of Resource America, Inc. (Resource America). The Directors
and Executive Officers of LEAF are:
CRIT S. DEMENT, age 50, Chairman of the Board of Directors and Chief
Executive Officer of LEAF since February 2002. Chairman of the
Board of Directors, President and Chief Executive Officer of LEAF from
November 2001 to February 2002. President of Fidelity Leasing, Inc.
and its successor, the Technology Finance Group of CitiCapital Vendor
Finance from 1998 to 2001. Vice President of Marketing for Tokai
Financial Services from 1987 through 1996.
CARLOS C. CAMPBELL, age 65, Director of LEAF since May 2002. President
of C.C. Campbell and Company (a management consulting firm) since 1985.
Director of PICO Holdings, Inc. (a publicly traded diversified holding
company) since 1998.
EDWARD E. COHEN, age 64, Director of LEAF since November 2001. Chairman
of the Board of Resource America since 1990. President of Resource
America since 2000 and Chief Executive Officer of Resource America since
1988. Chairman of the Managing Board of Directors of Atlas Pipeline
Partners GP, LLC (a wholly owned subsidiary of Resource America that is
the general partner of a publicly traded limited partnership that owns and
operates natural gas pipelines) since its formation in 1999. Chairman of
the Board of Directors of Brandywine Construction & Management, Inc. (a
property management company) since 1994. Mr. Cohen is the father of
Jonathan Z. Cohen.
JONATHAN Z. COHEN, age 32, Director of LEAF since November 2001. Chief
Operating Officer and a Director of Resource America since 2002. Execu-
tive Vice President of Resource America since 2001. Senior Vice Presi-
dent of Resource America from 1999 to 2001. Vice President of Resource
America from 1998 to 1999. Vice Chairman of the Managing Board of Atlas
Pipeline Partners GP, LLC since its formation in 1999. Trustee and
Secretary of RAIT Investment Trust (a publicly traded real estate invest-
ment trust) since 1997. Mr. Cohen is the son of Edward E. Cohen.
MILES HERMAN, age 43, President, Chief Operating Officer and a Director
of LEAF since February 2002. Vice President and a Director of LEAF from
November 2001 to February 2002. Held various senior operational offices
with Fidelity Leasing, Inc. and its successor from 1998 to 2001. Held
several management positions in sales, marketing and operations at Tokai
Financial Services from 1983 to 1998.
FREDDIE M. KOTEK, age 47, Director of LEAF since 1996. Senior Vice
President of Resource America since 1995. President of Resource Leasing,
Inc. since 1996.
8
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (Continued)
LINDA RICHARDSON, age 55, Director of LEAF since August 2002. President
and Chief Executive Officer of Richardson (a sales training and consulting
firm) since 1988. A director of the Pennsylvania Academy of the Fine
Arts.
MARIANNE T. SCHUSTER, age 44, Vice President of Accounting of LEAF
since 1984.
Item 11. EXECUTIVE COMPENSATION
The following table sets forth information relating to the aggregate
compensation earned by the General Partner of the Fund during the year ended
December 31, 2002:
Name of Individual or Capacities in
Number in Group Which Served Compensation
LEAF Financial
Corporation General Partner $66,131(1)
=======
(1) This amount does not include the General Partner's share of
cash distributions made to all partners.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) Based upon a review of Schedule 13D as filed with the Securities and
Exchange Commission, the table set forth below outlines the persons or
groups known to the Fund that own more than 5% of the Fund's outstanding
securities either beneficially or of record.
Name of Individual Number of
or Group Units Owned
James S. and Danea T. Riley 7,514.30 (1)
Odd Lot Liquidity Fund, LLC 7,514.30 (2)
Sierra Fund 4, LLC 7,514.30 (3)
(1) Amount represents beneficial ownership interest through
ownership of Odd Lot Liquidity Fund, LLC and Sierra Fund 4, LLC
which own 4,077.74 units and 3,436.56 units, respectively, of the
outstanding limited partnership units of the Fund.
(2) Amount represents direct ownership by Odd Lot Liquidity
Fund, LLC of 4,077.74 units and beneficial ownership of 3,436.56
units by virtue of group membership and affiliate status with
Sierra Fund 4, LLC.
(3) Amount represents direct ownership by Sierra Fund 4, LLC
of 3,436.56 units and beneficial ownership of 4,077.74 units by
virtue of group membership and affiliate status with Odd Lot
Liquidity Fund, LLC.
9
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(Continued)
(b) In 1989, the General Partner contributed $1,000 to the capital of
the Fund but it does not own any of the Fund's outstanding securities.
No individual director or officer of LEAF Financial Corporation
nor such directors or officers as a group, owns more than one percent
of the Fund's outstanding securities. The General Partner owns a
general partnership interest which entitles it to receive 1% of cash
distributions until the Limited Partners have received an amount equal
to the purchase price of their units plus a 12% compounded priority
return; thereafter 10%. The General Partner will also share in net
income equal to the greater of its cash distributions or 1% of net
income or to the extent there are losses, 1% of such losses.
(c) There are no arrangements known to the Fund that would, at any
subsequent date, result in a change in control of the Fund.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
During the year ended December 31, 2002, the Fund was charged by the
General Partner $66,131 of management fees. The General Partner will
continue to receive 5% or 2% of rental payments on equipment under operating
leases and full pay-out leases, respectively, for administrative and
management services performed on behalf of the Fund. Full pay-out leases
are noncancellable leases for which rental payments during the initial term
of the lease are at least sufficient to recover the purchase price of the
equipment, including acquisition fees. All of the direct financing leases
in which the Fund has invested meet the criteria for a full pay-out lease and
pay a 2% management fee to the General Partner. This management fee is paid
monthly only if and when the Limited Partners have received distributions for
the period from January 1, 1990 through the end of the most recent quarter
equal to a return for such period at a rate of 12% per year on the aggregate
amount paid for their units.
The General Partner may also receive up to 3% of the proceeds from the
sale of the Fund's equipment for services and activities to be performed in
connection with the disposition of equipment. The payment of this sales fee
is deferred until the Limited Partners have received cash distributions equal
to the purchase price of their units plus a 12% cumulative compounded priority
return. Based on current estimates, it is not expected that the Fund will be
required to pay this sales fee to the General Partner.
The General Partner receives 1% of cash distributions until the Limited
Partners have received an amount equal to the purchase price of their units
plus a 12% compounded priority return. Thereafter, the General Partner will
receive 10% of cash distributions. During the year ended December 31, 2002,
the General Partner received $47,800 of cash distributions.
The Fund incurred $172,962 of reimbursable costs to the General Partner
and its parent company for services and materials provided in connection with
the administration of the Fund during 2002.
10
Item 14. CONTROLS AND PROCEDURES
The Fund's Chief Executive Officer (principal executive officer) and Chief
Financial Officer (principal financial officer) have concluded, based on an
evaluation conducted within 90 days prior to the filing date of this Annual
Report on Form 10-K, that the Fund's disclosure controls and procedures have
functioned effectively so as to provide those officers the information
necessary to evaluate whether:
(i) this Annual Report on Form 10-K contains any untrue statement of a
material fact or omits to state a material fact necessary to make
the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered
by this Annual Report on Form 10-K, and
(ii) the financial statements, and other financial information included
in this Annual Report on Form 10-K, fairly present in all material
respects the financial condition, results of operations and cash flows
of the Fund as of, and for, the periods presented in this Annual Report
on Form 10-K.
There have been no significant changes in the Fund's internal controls or
in other factors since the date of the Chief Executive Officer's and Chief
Financial Officer's evaluation that could significantly affect internal con-
trols, including any corrective actions with regard to significant deficien-
cies and material weaknesses.
11
PART IV
Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) (1) and (2) The response to this portion of Item 14 is submitted
as a separate section of this report commencing on page F-1.
(a) (3) and (c) Exhibits (numbered in accordance with Item 601 of
Regulation S-K)
Exhibit Numbers Description Page Number
3(a) & (4) Amended and Restated Agreement *
of Limited Partnership
(9) not applicable
(10) not applicable
(11) not applicable
(12) not applicable
(13) not applicable
(18) not applicable
(19) not applicable
(22) not applicable
(23) not applicable
(24) not applicable
(25) not applicable
(28) not applicable
99.1 Certification pursuant to 18 18
U.S.C., Section 1350, as
adopted pursuant to Section
906 of the Sarbanes-Oxley Act
of 2002
99.2 Certification pursuant to 18 19
U.S.C., Section 1350, as
adopted pursuant to Section
906 of the Sarbanes-Oxley
Act of 2002
* Incorporated by reference.
12
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.
FIDELITY LEASING INCOME FUND VI, L.P.
A Delaware limited partnership
By: LEAF FINANCIAL CORPORATION
/s/ Crit S. DeMent
By: ___________________________
Crit S. DeMent, Chairman
Dated March 31, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934, this
annual report has been signed below by the following persons, on behalf of the
Registrant and in the capacities and on the date indicated:
Signature Title Date
/s/ Crit S. DeMent
____________________________ Chairman of the Board of Directors 3-31-03
Crit S. DeMent of LEAF Financial Corporation
(Principal Executive Officer)
/s/ Miles Herman
____________________________ President and Director of 3-31-03
Miles Herman LEAF Financial Corporation
/s/ Jonathan Z. Cohen
____________________________ Director of LEAF Financial Corporation 3-31-03
Jonathan Z. Cohen
/s/ Freddie M. Kotek
____________________________ Director of LEAF Financial Corporation 3-31-03
Freddie M. Kotek
/s/ Marianne T. Schuster
____________________________ Vice President of Accounting of 3-31-03
Marianne T. Schuster LEAF Financial Corporation
(Principal Financial Officer)
13
CERTIFICATIONS
I, Crit DeMent, certify that:
1. I have reviewed this annual report on Form 10-K of Fidelity Leasing
Income Fund VI, L.P.;
2. Based on my knowledge, this annual report does not contain any
untrue statement of material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particu-
larly during the period in which this annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effect-
tiveness of the disclosure controls and procedures based on our evaluation as
of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and
6. The registrant's other certifying officers and I have indicated in
this annual report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
14
CERTIFICATIONS (continued)
Date: March 31, 2003
/s/ Crit DeMent
____________________________
Crit S. DeMent
Chairman of the Board of Directors of LEAF Financial Corporation,
The General Partner
(Principal Executive Officer)
15
CERTIFICATIONS
I, Marianne T. Schuster, certify that:
1. I have reviewed this annual report on Form 10-K of Fidelity Leasing
Income Fund VI, L.P.;
2. Based on my knowledge, this annual report does not contain any
untrue statement of material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particu-
larly during the period in which this annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effect-
tiveness of the disclosure controls and procedures based on our evaluation as
of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and
6. The registrant's other certifying officers and I have indicated in
this annual report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
16
CERTIFICATIONS (continued)
Date: March 31, 2003
/s/ Marianne T. Schuster
____________________________
Marianne T. Schuster
Vice President of Accounting of LEAF Financial Corporation,
The General Partner
(Principal Financial Officer)
17
Exhibit 99.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of Fidelity Leasing Income Fund VI,
L.P. (the "Fund") on Form 10-K for the period ended December 31, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Crit S. DeMent, Principal Executive Officer of LEAF Financial Corporation,
the General Partner of the Fund, certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of opera-
tions of the Fund.
/s/ Crit S. DeMent
________________________
Crit S. DeMent
Principal Executive Officer of LEAF Financial Corporation
March 31, 2003
18
Exhibit 99.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of Fidelity Leasing Income Fund VI,
L.P. (the "Fund") on Form 10-K for the period ended December 31, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Marianne T. Schuster, Principal Financial Officer of LEAF Financial Corpora-
tion, the General Partner of the Fund, certify, pursuant to 18 U.S.C. Section
1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002,
that:
(1) The Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of opera-
tions of the Fund.
/s/ Marianne T. Schuster
________________________
Marianne T. Schuster
Principal Financial Officer of LEAF Financial Corporation
March 31, 2003
19
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Pages
Report of Independent Certified Public Accountants F-2
Balance Sheets as of December 31, 2002 and 2001 F-3
Statements of Operations for the years ended
December 31, 2002, 2001 and 2000 F-4
Statements of Partners' Capital for the years ended
December 31, 2002, 2001 and 2000 F-5
Statements of Cash Flows for the years ended
December 31, 2002, 2001 and 2000 F-6
Notes to Financial Statements F-7 - F-14
All schedules have been omitted because the required information is not
applicable or is included in the Financial Statements or Notes thereto.
F-1
Report of Independent Certified Public Accountants
The Partners
Fidelity Leasing Income Fund VI, L.P.
We have audited the accompanying balance sheets of Fidelity Leasing
Income Fund VI, L.P. as of December 31, 2002 and 2001, and the related
statements of operations, partners' capital and cash flows for each of the
three years in the period ended December 31, 2002. These financial state-
ments are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the finan-
cial statements are free of material misstatement. An audit includes examin-
ing, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting princi-
ples used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Fidelity Leasing
Income Fund VI, L.P. as of December 31, 2002 and 2001, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2002 in conformity with accounting principles generally accepted
in the United States of America.
Grant Thornton LLP
Philadelphia, Pennsylvania
February 7, 2003
F-2
FIDELITY LEASING INCOME FUND VI, L.P.
BALANCE SHEETS
ASSETS
December 31,
2002 2001
Cash and cash equivalents $2,889,654 $4,177,291
Accounts receivable 6,612 291,958
Due from related parties 68,611 17,397
Net investment in direct financing
leases 775,005 4,008,473
Equipment under operating leases
(net of accumulated depreciation
of $640,681 and $513,083,
respectively) 232,403 370,035
Equipment held for sale or lease 566,500 431,255
__________ __________
Total assets $4,538,785 $9,296,409
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 64,034 $ 55,888
Accounts payable and
accrued expenses 81,455 19,889
Due to related parties 32,838 25,248
__________ __________
Total liabilities 178,327 101,025
Partners' capital 4,360,458 9,195,384
__________ __________
Total liabilities and
partners' capital $4,538,785 $9,296,409
========== ==========
The accompanying notes are an integral part of these financial statements.
F-3
FIDELITY LEASING INCOME FUND VI, L.P.
STATEMENTS OF OPERATIONS
For the years ended December 31,
2002 2001 2000
Income:
Earned income on direct
financing leases $196,009 $455,118 $ 504,019
Rentals 175,873 261,002 696,191
Interest 97,126 104,399 80,988
Gain on sale of equipment, net - 46,260 52,789
Other 28,798 19,611 35,447
________ ________ __________
497,806 886,390 1,369,434
________ ________ __________
Expenses:
Depreciation 137,632 186,929 575,098
Write-down of equipment to
net realizable value - - 16,000
General and administrative 176,007 124,907 118,804
General and administrative to
related party 172,962 158,110 162,886
Management fee to related party 66,131 82,896 84,582
________ ________ __________
552,732 552,842 957,370
________ ________ __________
Net income (loss) ($ 54,926) $333,548 $ 412,064
======== ======== ==========
Net income (loss) per equivalent
limited partnership unit ($ 2.29) $ 10.42 $ 13.75
======== ======== ==========
Weighted average number of
equivalent limited partnership
units outstanding during the year 23,732 29,713 29,679
======== ======== ==========
The accompanying notes are an integral part of these financial statements.
F-4
FIDELITY LEASING INCOME FUND VI, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the years ended December 31, 2002, 2001 and 2000
General Limited Partners
Partner Units Amount Total
_______ ____________________ _____
Balance, January 1, 2000 $ 4,279 75,264 $9,225,493 $9,229,772
Cash distributions (3,600) - (356,400) (360,000)
Net income 4,121 - 407,943 412,064
_______ ______ __________ __________
Balance, December 31, 2000 4,800 75,264 9,277,036 9,281,836
Cash distributions (4,200) - (415,800) (420,000)
Net income 23,850 - 309,698 333,548
_______ ______ __________ __________
Balance, December 31, 2001 24,450 75,264 9,170,934 9,195,384
Cash distributions (47,800) - (4,732,200) (4,780,000)
Net loss (549) - (54,377) (54,926)
_______ ______ __________ __________
Balance, December 31, 2002 ($23,899) 75,264 $4,384,357 $4,360,458
======= ====== ========== ==========
The accompanying notes are an integral part of this financial statement.
F-5
FIDELITY LEASING INCOME FUND VI, L.P.
STATEMENTS OF CASH FLOWS
For the years ended December 31,
2002 2001 2000
Cash flows from operating activities:
Net income (loss) ($ 54,926) $ 333,548 $ 412,064
__________ __________ __________
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation 137,632 186,929 575,098
Write-down of equipment to net
realizable value - - 16,000
Gain on sale of equipment, net - (46,260) (52,789)
(Increase) decrease in accounts receivable 285,346 (82,080) (24,743)
(Increase) decrease in due from
related parties (51,214) 24,736 (5,592)
Increase (decrease) in lease rents paid in
advance 8,146 20,709 (57,480)
Increase (decrease) in accounts payable
and accrued expenses 61,566 (16,526) (4,417)
Increase (decrease) in due to related parties 7,590 (2,796) 2,081
__________ __________ __________
449,066 84,712 448,158
__________ __________ __________
Net cash provided by operating activities 394,140 418,260 860,222
__________ __________ __________
Cash flows from investing activities:
Acquisition of equipment (135,245) (10,034) -
Investment in direct financing leases (40,147) (919,992) (2,669,441)
Proceeds from direct financing leases,
net of earned income 3,273,615 3,022,951 1,984,665
Proceeds from sale of equipment - 103,354 183,348
__________ __________ __________
Net cash provided by (used in)
investing activities 3,098,223 2,196,279 (501,428)
__________ __________ __________
Cash flows from financing activities:
Distributions (4,780,000) (420,000) (360,000)
__________ __________ __________
Net cash used in financing activities (4,780,000) (420,000) (360,000)
__________ __________ __________
Increase (decrease) in cash and
cash equivalents (1,287,637) 2,194,539 (1,206)
Cash and cash equivalents, beginning of year 4,177,291 1,982,752 1,983,958
__________ __________ __________
Cash and cash equivalents, end of year $2,889,654 $4,177,291 $1,982,752
========== ========== ==========
The accompanying notes are an integral part of these financial statements.
F-6
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND NATURE OF BUSINESS
Fidelity Leasing Income Fund VI, L.P. (the Fund) was formed in January
1989. The General Partner of the Fund is LEAF Financial Corporation (LEAF).
LEAF is a wholly owned subsidiary of Resource Leasing, Inc. which is a wholly
owned subsidiary of Resource America, Inc. (Resource America). The Fund is
managed by the General Partner. The Fund's limited partnership interests are
not publicly traded. There is no market for the Fund's limited partnership
interests and it is unlikely that any will develop. The Fund acquires computer
equipment including printers, tape storage devices, data communications equip-
ment, computer terminals, technical workstations and networking equipment, as
well as other electronic equipment, that is leased to third parties throughout
the United States on a short-term basis.
The Fund is currently in the process of dissolution. As provided in the
Restated Limited Partnership Agreement, the assets of the Fund shall be liqui-
dated as promptly as is consistent with obtaining their fair value.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration of Credit Risk
Financial instruments that potentially subject the Fund to concentra-
tions of credit risk consist principally of temporary cash investments. The
Fund places its temporary investments in money market savings accounts.
Concentrations of credit risk with respect to accounts receivables are
due to the limited dispersion of the Fund's lessees over different industries
and geographies.
Impairment of Long-Lived Assets
The Fund adopted Statement of Financial Accounting Standard (SFAS) No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets", on
January 1, 2002. SFAS No. 144 retains the existing requirements to recognize
and measure the impairment of long-lived assets to be held and used or to be
disposed by sale. SFAS No. 144 changes the requirements relating to reporting
the effects of a disposal or discontinuation of a business segment.
The Fund reviews its assets to determine if it has any long-lived assets
that are carried on the books for an amount that may not be recoverable. If it
is determined that an asset's estimated future cash flows will not be suf-
ficient to recover its carrying amount, an impairment charge will be recorded.
The adoption of SFAS No. 144 did not have any material effect on the Fund's
financial position, results of operations or cash flows.
Equipment Held for Sale or Lease
Equipment held for sale or lease is carried at its estimated net real-
izable value.
F-7
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Use of Estimates
In preparing financial statements in conformity with accounting principles
generally accepted in the United States of America, management is required to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Accounting for Leases
The Fund's leasing operations consist of both direct financing
and operating leases. Under the direct financing method of accounting for
leases, income (the excess of the aggregate future rentals and estimated
unguaranteed residuals upon expiration of the lease over the related equip-
ment cost) is recognized over the life of the lease using the interest method.
Under the operating method of accounting for leases, the cost of the
leased equipment is recorded as an asset and depreciated on a straight-line
basis over its estimated useful life, up to seven years. Acquisition fees
associated with lease placements are allocated to equipment when purchased
and depreciated as part of equipment cost. Rental income consists primarily
of monthly periodic rentals due under the terms of the leases. Generally,
during the remaining terms of existing operating leases, the Fund will not
recover all of the undepreciated cost and related expenses of its rental equip-
ment and is prepared to remarket the equipment in future years. Upon sale or
other disposition of assets, the cost and related accumulated depreciation are
removed from the accounts and the resulting gain or loss, if any, is reflected
in income.
Income Taxes
Federal and State income tax regulations provide that taxes on the
income or benefits from losses of the Fund are reportable by the partners in
their individual income tax returns. Accordingly, no provision for such
taxes has been made in the accompanying financial statements.
Statements of Cash Flows
For purposes of the statements of cash flows, the Fund considers all
highly liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents.
Net Income per Equivalent Limited Partnership Unit
Net income per equivalent limited partnership unit is computed by
dividing net income allocated to limited partners by the weighted average
number of equivalent limited partnership units outstanding during the year.
The weighted average number of equivalent units outstanding during the year
is computed based on the weighted average monthly limited partners' capital
account balances, converted into equivalent units at $500 per unit.
F-8
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recent Accounting Pronouncements
In June 2001, SFAS No. 143, "Accounting for Asset Retirement Obligations"
was issued. SFAS No. 143 addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and
the associated asset retirement costs. Management expects to adopt SFAS
No. 143 on January 1, 2003 and is currently determining the impact of this
standard on its financial statements.
In April 2002, SFAS No. 145, "Rescission of FASB Statements No. 4, 44 and
64 and Amendment of FASB Statement No. 13, and Technical Corrections" was
issued. SFAS No. 145 eliminates extraordinary accounting treatment for re-
porting gain or loss on debt extinguishment, and amends other existing pro-
nouncements to make technical corrections, clarify meanings or describe their
applicability under changed conditions. The adoption of SFAS No. 145 did not
have a material effect on the Fund's financial position, results of operations
or cash flows.
3. ALLOCATION OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS
Cash distributions, if any, are made monthly as follows: 99% to the
Limited Partners and 1% to the General Partner, until the Limited Partners
have received an amount equal to the purchase price of their units, plus a
12% compounded priority return (an amount equal to 12% compounded annually on
the portion of the purchase price not previously distributed); thereafter,
90% to the Limited Partners and 10% to the General Partner.
Net Losses are allocated 99% to the Limited Partners and 1% to the
General Partner. The General Partner is allocated Net Income equal to its
cash distributions, but not less than 1% of Net Income, with the balance
allocated to the Limited Partners.
Net Income (Losses) allocated to the Limited Partners are allocated to
individual limited partners based on the ratio of the daily weighted average
partner's net capital account balance (after deducting related commission
expense) to the total daily weighted average of the Limited Partners' net
capital account balances.
4. EQUIPMENT LEASED
The Fund's direct financing leases are for initial lease terms ranging
from 24 to 60 months. Unguaranteed residuals for direct financing leases
represent the estimated amounts recoverable at lease termination from lease
extensions or disposition of the equipment. The Fund reviews these residual
values quarterly. If the equipment's fair market value is below the estimated
residual value, an adjustment is made.
F-9
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
4. EQUIPMENT LEASED (Continued)
The approximate net investment in direct financing leases as of Decem-
ber 31, 2002 is as follows:
Minimum lease payments to be received $536,000
Unguaranteed residuals 273,000
Unearned rental income (19,000)
Unearned residual income (15,000)
________
$775,000
========
Equipment on lease consists of equipment under operating leases. The
lessees have agreements with the manufacturer to provide maintenance for the
leased equipment. The Fund's operating leases are for initial lease terms of
36 to 58 months.
In accordance with accounting principles generally accepted in the United
States of America, the Fund writes down its rental equipment to its estimated
net realizable value when the amounts are reasonably estimated and only recog-
nizes gains upon actual sale of its rental equipment. As a result, there was
no charge to write-down of equipment to net realizable value for the year ended
December 31, 2002 and 2001, respectively. In 2000, approximately $16,000 was
charged to write-down of equipment to net realizable value. Any future losses
are dependent upon unanticipated technological developments affecting the
equipment in subsequent years.
The future approximate minimum rentals to be received on noncancellable
direct financing and operating leases as of December 31 are as follows:
Direct
Financing Operating
2003 $492,000 $117,000
2004 31,000 -
2005 13,000 -
________ ________
$536,000 $117,000
======== ========
5. RELATED PARTY TRANSACTIONS
The General Partner receives 5% or 2% of rental payments from equipment
under operating leases and full pay-out leases, respectively, for adminis-
trative and management services performed on behalf of the Fund. Full pay-
out leases are noncancellable leases for which the rental payments due during
the initial term of the lease are at least sufficient to recover the purchase
price of the equipment, including acquisition fees. This management fee is
paid monthly only if and when the Limited Partners have received distributions
for the period from January 1, 1990 through the end of the most recent calendar
quarter equal to a return for such period at a rate of 12% per year on the
aggregate amount paid for their units.
F-10
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
5. RELATED PARTY TRANSACTIONS (Continued)
The General Partner may also receive up to 3% of the proceeds from the
sale of the Fund's equipment for services and activities to be performed in
connection with the disposition of equipment. The payment of this sales fee
is deferred until the Limited Partners have received cash distributions equal
to the purchase price of their units plus a 12% cumulative compounded priority
return. Based on current estimates, it is not expected that the Fund will be
required to pay this sales fee to the General Partner.
Additionally, the General Partner and its parent company are reimbursed
by the Fund for certain costs of services and materials used by or for the
Fund except those items covered by the above-mentioned fees. Following is a
summary of fees and costs of services and materials charged by the General
Partner and its parent company during the years ended December 31:
2002 2001 2000
Management fee $ 66,131 $ 82,896 $ 84,582
Reimbursable costs 172,962 158,110 162,886
During 2001, the Fund transferred its checking and investment accounts
from Hudson United Bank to The Bancorp.com, Inc. (TBI). The son and the spouse
of the Chairman of Resource America, Inc. are the Chairman and Chief Executive
Officer, respectively, of TBI. The Fund maintains a normal banking relation-
ship with TBI.
Amounts due from related parties at December 31, 2002 and 2001 represent
monies due to the Fund from the General Partner and/or other affiliated funds
for rentals and sales proceeds collected and not yet remitted to the Fund.
Amounts due to related parties at December 31, 2002 and 2001 represent
monies due to the General Partner for the fees and costs mentioned above, as
well as, rentals and sales proceeds collected by the Fund on behalf of other
affiliated funds.
6. MAJOR CUSTOMERS
For the year ended December 31, 2002, two customers accounted for 67%
and 28% of the Fund's rental income. For the year ended December 31, 2001,
three customers accounted for 45%, 22% and 19% of the Fund's rental income.
For the year ended December 31, 2000, five customers accounted for 21%, 18%,
16%, 14% and 13% of the Fund's rental income.
F-11
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
7. CASH DISTRIBUTIONS
Below is a summary of the cash distributions paid to partners during
the years ended December 31:
For the Quarter Ended 2002 2001 2000
March $2,070,000 $105,000 $ 75,000
June 605,000 105,000 75,000
September 1,035,000 105,000 105,000
December 1,070,000 105,000 105,000
__________ ________ ________
$4,780,000 $420,000 $360,000
========== ======== ========
In addition, the General Partner declared and paid two cash distri-
butions of $35,000 each and one cash distribution of $1,000,000 subsequent
to December 31, 2002 for each of the months ended October 31, November 30 and
December 31, 2002, for an aggregate of $1,070,000 to all admitted partners as
of October 31, November 30 and December 31, 2002.
F-12
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
8. SUMMARY OF QUARTERLY RESULTS (UNAUDITED)
The following table summarizes the results of operations on a quarterly
basis during 2002 and 2001:
2002
----------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter
------- ------- ------- -------
Income:
Earned income on direct financing
leases $ 16,240 $ 28,578 $ 71,438 $ 79,753
Rentals 42,230 42,230 42,230 49,183
Interest 22,148 26,564 23,515 24,899
Other 1,078 24,115 1,987 1,618
________ ________ ________ ________
Total income 81,696 121,487 139,170 155,453
________ ________ ________ ________
Expenses:
Depreciation 32,736 32,735 32,736 39,425
General and administrative 55,955 33,205 47,881 38,966
General and administrative to
related party 51,041 41,984 36,894 43,043
Management fee to related party 6,085 9,565 28,536 21,945
________ ________ ________ ________
Total expenses 145,817 117,489 146,047 143,379
________ ________ ________ ________
Net income (loss) $(64,121) $ 3,998 $ (6,877) $ 12,074
======== ======== ======== ========
Net income (loss) per equivalent
limited partnership unit $ (2.64) $ - $ (0.26) $ 0.24
======== ======== ======== ========
F-13
FIDELITY LEASING INCOME FUND VI, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
8. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) (Continued)
2001
----------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter
------- ------- ------- -------
Income:
Earned income on direct financing
leases $ 94,844 $106,871 $125,109 $128,294
Rentals 49,409 44,325 71,247 96,022
Interest 29,001 30,464 24,672 20,262
Gain on sale of equipment, net - - 3,152 43,107
Other 3,706 8,663 2,801 4,441
________ ________ ________ ________
Total income 176,960 190,323 226,981 292,126
________ ________ ________ ________
Expenses:
Depreciation 36,081 32,735 36,735 81,378
General and administrative 26,415 35,862 32,181 30,449
General and administrative to
related party 46,559 43,111 35,289 33,151
Management fee to related party 21,177 20,320 20,223 21,176
________ ________ ________ ________
Total expenses 130,232 132,028 124,428 166,154
________ ________ ________ ________
Net income $ 46,728 $ 58,295 $102,553 $125,972
======== ======== ======== ========
Net income per equivalent limited
partnership unit $ .89 $ 1.93 $ 3.41 $ 4.19
======== ======== ======== ========
F-14