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8-K - FORM 8-K - CRONOS GLOBAL INCOME FUND XV LP | f59244e8vk.htm |
EXHIBIT 99.1
REPORT FOR THE FIRST QUARTER 2011
To the Limited Partners of Cronos Global Income Fund XV, L.P.:
The distribution to Limited Partners for May, June and July 2011 will be $417,175 per month, which
is equivalent to 3.50% (annualized) of your original capital contribution. Of this, $148,991 has
been generated by net cash provided by operating activities which is equivalent to 1.25%
(annualized) of your original capital contribution. $268,184 has been generated from the sale of
container rental equipment, which is equivalent to 2.25% (annualized) of your original capital
contribution. Your distribution check is enclosed with this report, unless you have provided us
with other mailing instructions. To date, approximately $12,189 per $10,000 originally invested
has been returned to the Limited Partners, assuming an investment made at the inception of the
Partnership in December 1993.
The utilization rate for the Partnerships container fleet was 99% at March 31, 2011. The leasing
sector as a whole continues to benefit from economic growth, which is predicted to continue at a
steady pace through 2012. As a result, lease rates have remained stable as customers secure
equipment to meet their demands. Direct operating expenses, particularly inventory-related
expenses, have declined primarily due to the strong market and corresponding high utilization
levels.
The General Partner remains focused on the Partnerships liquidation phase as it commenced its
18th year of operations, concentrating its attention on the retirement of the remaining
equipment in the Partnerships container fleet. The Partnership disposed of 476 containers during
the first quarter of 2011, and at March 31, 2011, the Partnerships fleet consisted of
approximately 25% of the original combined fleet. The General Partner will take several factors
into consideration when examining options for the timing of the disposal of the remaining
containers and the ultimate termination of the Partnership, including the level of net lease
revenue generated by the diminishing fleet, the level of costs relative to this revenue, projected
disposal proceeds on the disposition of the Partnerships containers, overall market conditions and
any foreseeable changes in other general and administrative expenses.
The following table sets forth the number of containers in the Partnerships operating lease fleet
based on container type, and is measured in twenty-foot equivalent units (TEUs), at March 31, 2011:
Dry Cargo | Refrigerated | Tank | ||||||||||||||
Containers | Containers | Containers | Total | |||||||||||||
Container on lease: |
||||||||||||||||
Master lease |
7,534 | 8 | 74 | 7,616 | ||||||||||||
Term lease |
||||||||||||||||
Short term1 |
3,675 | 3 | 44 | 3,722 | ||||||||||||
Long term2 |
857 | 1 | 35 | 893 | ||||||||||||
4,532 | 4 | 79 | 4,615 | |||||||||||||
Subtotal |
12,066 | 12 | 153 | 12,231 | ||||||||||||
Containers off-hire |
112 | 1 | 17 | 130 | ||||||||||||
Total container fleet |
12,178 | 13 | 170 | 12,361 | ||||||||||||
1. | Short term leases represent term leases that are either scheduled for renegotiation or that may expire on or before March 2012. | |
2. | Long term leases represent term leases that will expire after March 2012. |
CCC is in the process of preparing and
distributing a request for proposal (RFP) to
prospective third-party container buyers. The RFP will seek to determine the interest such parties
may have in purchasing the remaining containers owned by the Partnership. CCC will not make a
decision relating to the final liquidation of the Partnership until any such proposals have been
received and fully evaluated. If a decision is made to liquidate the Partnership, the distribution
of cash from operations or sales proceeds may be suspended while the liquidation of the remaining
containers in the fleet is evaluated. This is to ensure that sufficient cash reserves will be
available for expenses relating to the final liquidation and subsequent dissolution of the
Partnership. CCC would make one or more liquidating distributions to the Limited Partners on or
before the termination of the Partnership, or reinstate the monthly cash distributions should no
decision be made to liquidate the fleet in 2011.
May 31, 2011
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CRONOS CAPITAL CORP. | |
The General Partner |