Attached files
file | filename |
---|---|
8-K - FORM 8-K - ICON ECI FUND FIFTEEN, L.P. | v443170_8k.htm |
Exhibit 99.1
ICON ECI Fund Fifteen, L.P.
PORTFOLIO OVERVIEW |
FIRST QUARTER 2016 |
Table of Contents | |
Introduction to Portfolio Overview | 11111111 |
Investment During the Quarter | 1 |
Disposition During the Quarter | 1 |
Dispositions Following the Quarter | 2 |
Portfolio Overview | 2 |
Discussion | 5 |
Revolving Line of Credit | 6 |
Performance Analysis | 7 |
Transactions with Related Parties | 8 |
Financial Statements | 10 |
Forward Looking Statements | 15 |
Additional Information | 15 |
ICON ECI Fund Fifteen, L.P. |
As of June 1, 2016
Introduction to Portfolio Overview
We are pleased to present ICON ECI Fund Fifteen, L.P.’s (the “Fund”) Portfolio Overview for the quarter ended March 31, 2016. References to “we,” “us,” and “our” are references to the Fund, references to the “General Partner” are references to the general partner of the Fund, ICON GP 15, LLC, and references to the “Investment Manager” are references to the investment manager of the Fund, ICON Capital, LLC.
The Fund makes investments in companies that utilize equipment and other corporate infrastructure (collectively, “Capital Assets”) to operate their businesses. These investments are primarily structured as debt and debt-like financings (such as loans and leases) that are collateralized by Capital Assets.
The Fund raised $196,688,918 commencing with its initial offering on June 6, 2011 through the closing of the offering on June 6, 2013. During the operating period, we anticipate continuing to invest in Capital Assets. Following our operating period, we will enter our liquidation period, during which time the loans and leases we own will mature or be sold in the ordinary course of business.
Investment During the Quarter
The Fund made the following investments during the quarter ended March 31, 2016:
Fugro N.V. (ICON Voyager Pte. Ltd.) | ||||
Investment Date: | 1/8/2016 | Collateral: | One mini geotechnical drilling vessel. | |
Structure: | Lease | |||
Expiration Date: | 12/24/2027 | |||
Purchase Price: | $65,000,000 | |||
The Fund’s Investment: | $8,099,000 |
Disposition During the Quarter
The Fund disposed of the following investment during the quarter ended March 31, 2016:
D&T Holdings, LLC | ||||
Structure: | Lease | Collateral: | Trucks, trailers and other equipment. | |
Disposition Date: | 1/14/2016 | |||
The Fund’s Investment: | $3,355,000 | |||
Total Proceeds Received: | $4,594,000 |
Page 1 |
ICON ECI Fund Fifteen, L.P. |
Dispositions Following the Quarter
The Fund disposed of the following investments after the quarter ended March 31, 2016:
Ardmore Shipholding Limited | ||||
Structure: | Lease | Collateral: | Two chemical tanker vessels. | |
Disposition Date: | 4/5/2016 | |||
The Fund’s Investment: | $4,868,000 | |||
Total Proceeds Received: | $7,222,000 |
Quattro Plant Limited | ||||
Structure: | Loan | Collateral: | Rail support construction equipment. | |
Disposition Date: | 5/23/2016 | |||
The Fund’s Investment: | £4,000,000 | |||
Total Proceeds Received: | £5,796,000 |
Portfolio Overview
As of March 31, 2016, our portfolio consisted of the following investments:
Kyla Shipping Company | ||||
Structure: | Loan | Collateral: | A dry bulk carrier. | |
Maturity Date: | 11/22/2016 | |||
Current Status: | See Discussion | Net Carrying Value: | $0 |
Lubricating Specialties Company | ||||
Structure: | Loan | Collateral: | Liquid storage tanks, blending lines and packaging equipment. | |
Maturity Date: | 8/1/2018 | |||
Current Status: | Performing | Net Carrying Value: | $9,219,460 (1) |
Bergshav Product Tankers | ||||
Structure: | Loan | Collateral: | Three product tanker vessels. | |
Maturity Date: | 10/4/2017 | |||
Current Status: | Performing | Net Carrying Value: | $7,245,928 (1) |
Quattro Plant Limited | ||||
Structure: | Loan | Collateral: | Rail support construction equipment. | |
Maturity Date: | 8/1/2016 | |||
Current Status: | Performing | Net Carrying Value: | $2,747,880 (1) |
Page 2 |
ICON ECI Fund Fifteen, L.P. |
Portfolio Overview (Continued)
Sargeant Marine, Inc. | ||||
Structure: | Loan | Collateral: |
Asphalt carrier vessel.
| |
Maturity Date: | 12/31/2018 | |||
Current Status: | Performing | Net Carrying Value: | $1,521,564 (1) |
Técnicas Marítimas Avanzadas, S.A. de C.V. | ||||
Structure: | Loan | Collateral: | Four platform supply vessels. | |
Maturity Date: | 8/27/2019 | |||
Current Status: | See Discussion | Net Carrying Value: | $3,500,490 (1) |
Premier Trailer Leasing, Inc. | ||||
Structure: | Loan | Collateral: | Trailers. | |
Maturity Date: | 9/24/2020 | |||
Current Status: | Performing | Net Carrying Value: | $5,224,452 (1) |
Inotera Memories, Inc. | ||||
Structure: | Lease | Collateral: | An ASML Twinscan NXT 1970ci photolithograph immersion scanner used in semiconductor manufacturing. | |
Expiration Date: | 11/30/2016 | |||
Current Status: | Performing | Net Carrying Value: | $18,116,145 (2) |
Challenge Mfg. Company, LLC | ||||
Structure: | Lease | Collateral: | Auxiliary support equipment and robots. | |
Expiration Dates: | Sch. 1 7/9/2020 | |||
Sch. 2 10/9/2020 | ||||
Sch. 3 1/9/2021 | Net Carrying Value: | Sch. 1 & 3 $13,317,931 (4) | ||
Current Status: | Performing | Net Carrying Value: | Sch. 2 $2,542,020 (3) |
Fugro N.V. | ||||
Structure: | Lease | Collateral: | Two mini geotechnical drilling vessels. | |
Expiration Date: | 12/24/2027 | |||
Current Status: | Performing | Net Carrying Value: | $17,998,085 (4) |
Page 3 |
ICON ECI Fund Fifteen, L.P. |
Portfolio Overview (Continued)
Ardmore Shipholding Limited | ||||
Structure: | Lease | Collateral: | Two chemical tanker vessels. | |
Expiration Date: | 4/3/2018 | |||
Current Status: | Performing | Net Carrying Value: | $5,567,190 (4) |
Ezra Holdings Limited | ||||
Structure: | Lease | Collateral: | Offshore support vessel. | |
Expiration Date: | 6/3/2021 | |||
Current Status: | Performing | Net Carrying Value: | $2,050,192 (4) |
Höegh Autoliners Shipping AS | ||||
Structure: | Lease | Collateral: | A car carrier vessel. | |
Expiration Date: | 12/21/2020 | |||
Current Status: | Performing | Net Carrying Value: | $16,039,852 (5) |
SIVA Global Ships Limited | ||||
Structure: | Lease | Collateral: | Two liquefied petroleum gas tanker vessels. | |
Expiration Dates: | 3/28/2022 | |||
4/8/2022 | ||||
Current Status: | Performing | Net Carrying Value: | $1,412,008 (6) |
Blackhawk Mining, LLC | ||||
Structure: | Lease | Collateral: | Mining equipment. | |
Expiration Date: | 2/28/2018 | |||
Current Status: | Performing | Net Carrying Value: | $1,510,195 (6) |
Pacific Radiance Ltd. | ||||
Structure: | Lease | Collateral: |
Offshore supply vessel.
| |
Expiration Date: | 6/12/2024 | |||
Current Status: | Performing | Net Carrying Value: | $1,615,176 (6) |
Page 4 |
ICON ECI Fund Fifteen, L.P. |
Portfolio Overview (Continued)
Jurong Aromatics Corporation Pte. Ltd. | ||||
Structure: | Loan | Collateral: | Equipment, plant, and machinery associated with the condensate splitter and aromatics complex located on Jurong Island, Singapore. | |
Maturity Date: | 1/16/2021 | |||
Current Status: | See Discussion | Net Carrying Value: | $2,152,337 (6) |
(1) Net carrying value of our investment in note receivable is the sum of the remaining principal outstanding and the unamortized initial direct costs, less deferred fees.
(2) Leased equipment at cost is the cost of the equipment and initial direct costs, less accumulated depreciation and accumulated amortization. Net carrying value of our investment in leased equipment at cost is leased equipment at cost less any outstanding indebtedness associated with the investment.
(3) Investment in finance lease is the sum of the remaining minimum lease payments receivable, the estimated residual value of the asset and the unamortized initial direct costs, less unearned income. Net carrying value is our investment in finance lease less any outstanding indebtedness associated with the investment.
(4) This investment is through a joint venture that we consolidated and presented on our consolidated balance sheets as net investment in finance lease. Net investment in finance lease is the sum of the remaining minimum lease payments receivable, the estimated residual value of the asset and the unamortized initial direct costs, less unearned income. Net carrying value represents our proportionate share of the investment, less any outstanding indebtedness associated with the investment and includes the recognition of an investment by noncontrolling interests for the share of such investment held by the joint venture’s noncontrolling interest holders.
(5) This investment is through a joint venture that we consolidated and presented on our consolidated balance sheets as leased equipment at cost. Leased equipment at cost is the cost of the equipment and initial direct costs, less accumulated depreciation and accumulated amortization. Net carrying value represents our proportionate share of the investment, less any outstanding indebtedness associated with the investment and includes the recognition of an investment by noncontrolling interests for the share of such investment held by the joint venture’s noncontrolling interest holders.
(6) Net carrying value of our investment in joint ventures is calculated as follows: investment at cost plus/less our share of the cumulative net income/loss of the joint venture and less distributions received since the date of our initial investment.
Discussion
Jurong Aromatics Corporation Pte. Ltd.
Jurong Aromatics Corporation Pte. Ltd. (“Jurong”) is a newly constructed $2 billion state-of-the art aromatics plant. We participated in a subordinated equipment loan in April 2011 alongside Standard Chartered Bank and BP Singapore Pte. Ltd., that was part of the $2 billion financing package that included over $500 million in equity from strategic investors. While the plant was completed on time, a combination of industry headwinds, downturn in commodities and the Chinese economic slowdown forced Jurong into receivership, as the company does not have the liquidity to commence operations. As part of the receivership, we are hoping that there will be a consensual restructuring with the senior lenders, shareholders and trade creditors. Given the current distressed situation, we have taken a credit reserve that values the asset at 11% of original cost. Our Investment Manager believes that a restructuring is the best option and, given the cyclical nature of the industry that Jurong participates in, and the fact that this is a state-of-the-art plant, if margins follow historical patterns, there is a chance the investment may recover some or all of its value.
Page 5 |
ICON ECI Fund Fifteen, L.P. |
Discussion (Continued)
Kyla Shipping Company
Kyla Shipping Company (“Kyla”) is a Greece-based ship management company. In 2011, we made a second lien loan secured by one of Kyla's dry bulk vessels. Currently, there are extreme headwinds facing the dry bulk market, mostly as a result of the slowdown in the Chinese economy, which for years was driven by heavy investment that fueled demand for steel, coal and iron ore. As China moves towards a consumer-driven economy, demand for these commodities has slowed significantly. Consequently, Kyla is in default on the loan and we are working with Kyla on a restructuring. In addition, given the depressed market, we have taken a credit reserve of 97% of original cost. Kyla is currently maintaining the vessels. We believe that, for the foreseeable future, allowing Kyla to continue to maintain the vessel while we work to restructure the loan and hope for a market recovery is the best option.
Técnicas Marítimas Avanzadas, S.A. de C.V.
On August 27, 2014, we, ICON Leasing Fund Twelve, LLC and ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P. (“Fund Fourteen”), (collectively, “ICON”) advanced Técnicas Marítimas Avanzadas, S.A. de C.V. (“TMA”) a senior secured facility of $29,000,000 secured by two offshore supply vessels. On November 24, 2014, such facility agreement was amended to allow for a senior secured first lien and second lien structure and to include an additional two offshore supply vessels as security for the facility. A senior secured first lien tranche of $66,000,000 was funded by an unrelated third party and ICON’s original loan of $29,000,000 was converted to the senior secured second lien tranche. As a condition to the amendment and increased facility size, TMA was required to have all four vessels under contract by March 31, 2015.
On March 31, 2015, TMA defaulted on the facility because only two of the four vessels had commenced employment. As a result of such default, the senior lender is, among other things, entitled to receive all cash flow from the existing employed vessels to pay interest and reduce its principal balance. The interest on ICON's tranche is currently being capitalized. By January 2016, each of the four vessels had commenced employment as originally required under the terms of the facility. ICON is currently working with the senior lender and TMA to amend the facility agreement.
Revolving Line of Credit
On March 31, 2015, we extended our revolving line of credit (the “Facility”) with California Bank & Trust (“CB&T”) through May 30, 2017 and the amount available under the Facility was increased to $12,500,000. The Facility is secured by all of our assets not subject to a first priority lien. Amounts available under the Facility are subject to a borrowing base that is determined, subject to certain limitations, by the present value of the future receivables under certain loans and lease agreements in which we have a beneficial interest.
The interest rate for general advances under the Facility is CB&T’s prime rate. We may elect to designate up to five advances on the outstanding principal balance of the Facility to bear interest at the London Interbank Offered Rate plus 2.5% per year. In all instances, borrowings under the Facility are subject to an interest rate floor of 4.0% per year. In addition, we are obligated to pay an annualized 0.5% fee on unused commitments under the Facility. At March 31, 2016, there were no obligations outstanding under the Facility and we were in compliance with all covenants related to the Facility.
Page 6 |
ICON ECI Fund Fifteen, L.P. |
Performance Analysis
Capital Invested as of March 31, 2016 | $249,856,406 |
Leverage Ratio | 1.50:1* |
% of Receivables Collected for the Quarter Ended March 31, 2016 | 85.83%** |
* Leverage ratio is defined as total liabilities divided by total equity.
** Collections as of June 1, 2016. The uncollected receivables relate to our investment with Técnicas Marítimas Avanzadas, S.A. de C.V., Kyla Shipping Company and Jurong Aromatics Corporation Pte. Ltd.
One of our objectives is to provide cash distributions to our partners. In order to assess our ability to meet this objective, unaffiliated broker dealers, third party due diligence providers and other members of the investing community have requested that we report a financial measure that can be reconciled to our financial statements and can be used to assess our ability to support cash distributions from our business operations. We refer to this financial measure as cash available from our business operations, or CABO. CABO is not equivalent to our net operating income or loss as determined under GAAP. Rather, it is a measure that may be a better financial measure for an equipment fund because it measures cash generated by investments, net of management fees and expenses, during a specific period of time. We define CABO as the net change in cash during the period plus distributions to partners and investments made during such period, less the debt proceeds used to make such investments and the activity related to the Facility, as well as the net proceeds from equity raised through the sale of interests during such period.
We believe that CABO may be an appropriate supplemental measure of an equipment fund’s performance because it is based on a measurement of cash during a specific period that excludes cash from non-business operations, such as distributions, investments and equity raised.
Presentation of this information is intended to assist unaffiliated broker dealers, third party due diligence providers and other members of the investing community in understanding the Fund’s ability to support its distributions from its business operations. It should be noted, however, that no other equipment funds calculate CABO, and therefore comparisons with other equipment funds are not meaningful. CABO should not be considered as an alternative to net income (loss) as an indication of our performance or as an indication of our liquidity. CABO should be reviewed in conjunction with other measurements as an indication of our performance.
Cash Available from Business Operations, or CABO, is the cash generated by investments during a specific period of time, net of fees and expenses, excluding distributions to partners, net equity raised and investments made.
Net Change in Cash per GAAP Cash
|
Business Operations Net cash flow generated by our |
Non-Business Operations Net Equity Raised Cash expended to make investments and Distributions to Partners |
As indicated above, the total net change in cash is the aggregate of the net cash flows from Business Operations and the net cash flows from Non-Business Operations. By taking the total net change in cash and removing the cash activity related to Non-Business Operations (distributions, investments and equity raised), the amount remaining is the net cash available from Business Operations (net cash flows generated by investments, net of fees and expenses).
Page 7 |
ICON ECI Fund Fifteen, L.P. |
Performance Analysis (Continued)
In summary, CABO is calculated as:
Net change in cash during the period per the GAAP cash flow statement
+ distributions to Partners during the period
+ investments made during the period
- debt proceeds to be specifically used to make an investment
- net proceeds from the sale of Interests during the period
= CABO
Cash Available From Business Operations
for the Period January 1, 2016 through March 31, 2016
Cash balance at January 1, 2016 | $ | 18,067,904 | ||||||
Cash balance at March 31, 2016 | $ | 8,605,399 | ||||||
Net change in cash | $ | (9,462,505 | ) | |||||
Add Back: | ||||||||
Distributions paid to partners from January 1, 2016 through March 31, 2016 | $ | 3,969,524 | ||||||
Investments made during the period | ||||||||
Purchase of equipment | $ | 9,875,000 | ||||||
Payment of debt financing costs | $ | 1,706,250 | ||||||
$ | 11,581,250 | |||||||
Cash Available from Business Operations (CABO) | $ | 6,088,269 | (1) |
(1) | Cash available from business operations includes the collection of principal and interest from our investments in notes receivable and finance leases. |
Transactions with Related Parties
We have entered into certain agreements with our General Partner, our Investment Manager, and CĪON Securities, LLC, formerly known as ICON Securities, LLC (“CĪON Securities”), a wholly-owned subsidiary of our Investment Manager and the dealer-manager of our offering, whereby we pay or paid certain fees and reimbursements to these parties. CĪON Securities was entitled to receive a 3% underwriting fee from the gross proceeds from sales of our limited partnership interests, of which up to 1% were paid to unaffiliated broker-dealers as a fee for their assistance in marketing the Fund and coordinating sales efforts.
In addition, we reimbursed our General Partner and its affiliates for organizational and offering expenses incurred in connection with our organization and offering. The reimbursement of these expenses was capped at the lesser of 1.44% of the gross offering proceeds (assuming all of our limited partnership interests were sold in the offering) and the actual costs and expenses incurred by our General Partner and its affiliates.
We pay our Investment Manager (i) a management fee equal to 3.5% of the gross periodic payments due and paid from our investments, and (ii) acquisition fees, through the end of the operating period, equal to 2.5% of the total purchase price (including indebtedness incurred or assumed and all fees and expenses incurred in connection therewith) of, or the value of the Capital Assets secured by or subject to, our investments.
Page 8 |
ICON ECI Fund Fifteen, L.P. |
Transactions with Related Parties (Continued)
Our General Partner and its affiliates also perform certain services relating to the management of our portfolio. Such services include, but are not limited to, credit analysis and underwriting, receivables management, portfolio management, accounting, financial and tax reporting, and remarketing and marketing services.
In addition, our General Partner and its affiliates are reimbursed for administrative expenses incurred in connection with our operations. Administrative expense reimbursements are costs incurred by our General Partner or its affiliates that are necessary to our operations.
Our General Partner also has a 1% interest in our profits, losses, distributions and liquidation proceeds. We paid distributions to our General Partner of $39,695 and $39,330 for the three months ended March 31, 2016 and 2015, respectively. Additionally, our General Partner’s interest in our net income was $22,466 and $18,622 for the three months ended March 31, 2016 and 2015, respectively.
Fees and other expenses incurred by us to our General Partner or its affiliates were as follows:
Three Months Ended March 31, | ||||||||||||
Entity | Capacity | Description | 2016 | 2015 | ||||||||
ICON Capital, LLC | Investment Manager | Management fees (1) | $ | 285,922 | $ | 398,164 | ||||||
ICON Capital, LLC | Investment Manager | Administrative expense reimbursements (1) | 330,562 | 402,887 | ||||||||
Fund Fourteen | Noncontrolling interest | Interest expense (1) | 102,369 | 101,162 | ||||||||
$ | 718,853 | $ | 902,213 |
(1) Amount charged directly to operations.
At March 31, 2016, we had a net payable of $2,982,580 due to our General Partner and affiliates that primarily consisted of a note payable of $2,608,146 and accrued interest of $30,320 due to Fund Fourteen related to its noncontrolling interest in a vessel the Lewek Ambassador, and administrative expense reimbursements of $330,562 due to our Investment Manager.
At December 31, 2015, we had a net payable of $5,682,643 due to our General Partner and affiliates that primarily consisted of a note payable of $2,614,691 and accrued interest of $30,396 due to Fund Fourteen related to its noncontrolling interest in the Lewek Ambassador, and administrative expense reimbursements of $519,380 and acquisition fees of $2,437,500 due to our Investment Manager.
Your participation in the Fund is greatly appreciated.
We are committed to protecting the privacy of our investors in compliance with all applicable laws. Please be advised that, unless required by a regulatory authority such as FINRA or ordered by a court of competent jurisdiction, we will not share any of your personally identifiable information with any third party.
Page 9 |
ICON ECI Fund Fifteen, L.P. |
Financial Statements | (A Delaware Limited Partnership) |
Consolidated Balance Sheets |
March 31, | December 31, | |||||||
2016 | 2015 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Cash | $ | 8,605,399 | $ | 18,067,904 | ||||
Net investment in notes receivable | 29,459,774 | 30,013,756 | ||||||
Leased equipment at cost (less accumulated depreciation of $48,829,903 and $40,253,258, respectively) | 237,300,291 | 183,584,053 | ||||||
Net investment in finance leases | 58,577,283 | 59,683,406 | ||||||
Investment in joint ventures | 11,268,274 | 13,209,019 | ||||||
Other assets | 5,117,434 | 7,332,096 | ||||||
Total assets | $ | 350,328,455 | $ | 311,890,234 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Non-recourse long-term debt | $ | 184,427,451 | $ | 148,023,063 | ||||
Derivative financial instruments | 211,020 | - | ||||||
Due to General Partner and affiliates, net | 2,982,580 | 5,682,643 | ||||||
Seller's credits | 20,569,426 | 13,437,087 | ||||||
Accrued expenses and other liablities | 2,102,404 | 3,047,361 | ||||||
Total liabilities | 210,292,881 | 170,190,154 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Partners' equity: | ||||||||
Limited partners | 121,739,905 | 123,445,636 | ||||||
General Partner | (537,481 | ) | (520,252 | ) | ||||
Total partners' equity | 121,202,424 | 122,925,384 | ||||||
Noncontrolling interests | 18,833,150 | 18,774,696 | ||||||
Total equity | 140,035,574 | 141,700,080 | ||||||
Total liabilities and equity | $ | 350,328,455 | 311,890,234 |
Page 10 |
ICON ECI Fund Fifteen, L.P. |
Financial Statements | (A Delaware Limited Partnership) |
Consolidated Statements of Operations (unaudited)
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Revenue and other income: | ||||||||
Finance income | $ | 2,275,931 | $ | 3,266,323 | ||||
Rental income | 12,229,504 | 10,801,214 | ||||||
Income from investment in joint ventures | 664,898 | 656,006 | ||||||
Other loss | (107,818 | ) | (281,375 | ) | ||||
Total revenue and other income | 15,062,515 | 14,442,168 | ||||||
Expenses: | ||||||||
Management fees | 285,922 | 398,164 | ||||||
Administrative expense reimbursements | 330,562 | 402,887 | ||||||
General and administrative | 427,574 | 542,928 | ||||||
Interest | 2,483,322 | 1,728,112 | ||||||
Depreciation | 8,576,645 | 8,078,356 | ||||||
Loss on derivative financial instruments | 282,894 | - | ||||||
Impairment loss | - | 1,180,260 | ||||||
Credit loss | - | 362,666 | ||||||
Total expenses | 12,386,919 | 12,693,373 | ||||||
Net income | 2,675,596 | 1,748,795 | ||||||
Less: net income (loss) attributable to noncontrolling interests | 429,032 | (113,426 | ) | |||||
Net income attributable to Fund Fifteen | $ | 2,246,564 | $ | 1,862,221 | ||||
Net income attributable to Fund Fifteen allocable to: | ||||||||
Limited partners | $ | 2,224,098 | $ | 1,843,599 | ||||
General Partner | 22,466 | 18,622 | ||||||
$ | 2,246,564 | $ | 1,862,221 | |||||
Weighted average number of limited partnership interests outstanding | 197,385 | 197,385 | ||||||
Net income attributable to Fund Fifteen per weighted average limited partnership interest outstanding | $ | 11.27 | $ | 9.34 |
Page 11 |
ICON ECI Fund Fifteen, L.P. |
Financial Statements | (A Delaware Limited Partnership) |
Consolidated Statement of Changes in Equity
Partners' Equity | ||||||||||||||||||||||||
Limited | Total | |||||||||||||||||||||||
Partnership | Limited | General | Partners' | Noncontrolling | Total | |||||||||||||||||||
Interests | Partners | Partner | Equity | Interests | Equity | |||||||||||||||||||
Balance, December 31, 2015 | 197,385 | $ | 123,445,636 | $ | (520,252 | ) | $ | 122,925,384 | $ | 18,774,696 | $ | 141,700,080 | ||||||||||||
Net income | - | 2,224,098 | 22,466 | 2,246,564 | 429,032 | 2,675,596 | ||||||||||||||||||
Distributions | - | (3,929,829 | ) | (39,695 | ) | (3,969,524 | ) | (370,578 | ) | (4,340,102 | ) | |||||||||||||
Balance, March 31, 2016 (unaudited) | 197,385 | $ | 121,739,905 | $ | (537,481 | ) | $ | 121,202,424 | $ | 18,833,150 | $ | 140,035,574 |
Page 12 |
ICON ECI Fund Fifteen, L.P. |
Financial Statements | (A Delaware Limited Partnership) |
Consolidated Statements of Cash Flows (unaudited)
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 2,675,596 | $ | 1,748,795 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Finance income | 210,844 | 338,780 | ||||||
Credit loss | - | 362,666 | ||||||
Rental income paid directly to lenders by lessees | - | (1,017,869 | ) | |||||
Income from investment in joint ventures | (664,898 | ) | (656,006 | ) | ||||
Depreciation | 8,576,645 | 8,078,356 | ||||||
Impairment loss | - | 1,180,260 | ||||||
Interest expense on non-recourse financing paid directly to lenders by lessees | - | 121,710 | ||||||
Interest expense from amortization of debt financing costs | 211,216 | 110,992 | ||||||
Interest expense from amortization of seller's credit | 214,456 | 77,579 | ||||||
Other financial loss | 322,413 | 259,239 | ||||||
Paid-in-kind interest | - | 4,744 | ||||||
Changes in operating assets and liabilities: | ||||||||
Other assets | 1,366,636 | 843,819 | ||||||
Deferred revenue | 414,361 | (178,749 | ) | |||||
Due to General Partner and affiliates, net | (2,700,063 | ) | (157,920 | ) | ||||
Distributions from joint ventures | 623,233 | 477,387 | ||||||
Accrued expenses and other liabilities | (676,818 | ) | (1,142,630 | ) | ||||
Net cash provided by operating activities | 10,573,621 | 10,451,153 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of equipment | (9,875,000 | ) | - | |||||
Principal received on finance leases | 1,036,131 | 894,998 | ||||||
Principal received on notes receivable | 319,219 | 2,789,946 | ||||||
Change in restricted cash | 825,063 | - | ||||||
Distributions received from joint ventures in excess of profits | 1,982,410 | - | ||||||
Net cash (used in) provided by investing activities | (5,712,177 | ) | 3,684,944 | |||||
Cash flows from financing activities: | ||||||||
Repayment of non-recourse long-term debt | (8,277,597 | ) | (10,199,056 | ) | ||||
Payment of debt financing costs | (1,706,250 | ) | (381,394 | ) | ||||
Investments by noncontrolling interests | - | 1,819 | ||||||
Distributions to noncontrolling interests | (370,578 | ) | (370,539 | ) | ||||
Repurchase of limited partnership interests | - | (59,139 | ) | |||||
Distributions to partners | (3,969,524 | ) | (3,933,033 | ) | ||||
Net cash used in financing activities | (14,323,949 | ) | (14,941,342 | ) | ||||
Net decrease in cash | (9,462,505 | ) | (805,245 | ) | ||||
Cash, beginning of period | 18,067,904 | 20,340,317 | ||||||
Cash, end of period | $ | 8,605,399 | $ | 19,535,072 |
Page 13 |
ICON ECI Fund Fifteen, L.P. |
Financial Statements | (A Delaware Limited Partnership) |
Consolidated Statements of Cash Flows (unaudited) (continued)
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 1,688,212 | $ | 948,707 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Vessel purchased with non-recourse long-term debt paid directly to seller | $ | 45,500,000 | $ | - | ||||
Vessel purchased with subordinated non-recourse financing provided by seller | $ | 6,917,883 | $ | - | ||||
Transfer of leased equipment at cost, net, to assets held for sale | $ | - | $ | 4,019,740 | ||||
Principal and interest on non-recourse long-term debt paid directly to lenders by lessees | $ | - | $ | 1,017,869 |
Page 14 |
ICON ECI Fund Fifteen, L.P. |
Forward Looking Statements
Certain statements within this document may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements are being made pursuant to the PSLRA, with the intention of obtaining the benefits of the “safe harbor” provisions of the PSLRA, and, other than as required by law, we assume no obligation to update or supplement such statements. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. You can identify these statements by the use of words such as “may,” “will,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “continue,” “further,” “plan,” “seek,” “intend,” “predict” or “project” and variations of these words or comparable words or phrases of similar meaning. These forward-looking statements reflect our current beliefs and expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties and other factors outside our control that may cause actual results to differ materially from those projected. We undertake no obligation to update publicly or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Additional Information
“Total Proceeds Received,” as referenced in the sections entitled Disposition During the Quarter and Dispositions Following the Quarter, does not include proceeds received to satisfy indebtedness incurred in connection with the investment, if any, or the payment of any fees or expenses with respect to such investment.
A detailed financial report on SEC Form 10-Q or 10-K (whichever is applicable) is available to you. It is typically filed either 45 or 90 days after the end of a quarter or year, respectively. Usually this means a filing will occur on or around March 31, May 15, August 14, and November 14 of each year. It contains financial statements and detailed sources and uses of cash plus explanatory notes. You are always entitled to these reports. Please access them by:
· | Visiting www.iconinvestments.com, or |
· | Visiting www.sec.gov, or |
· | Writing us at: Angie Seenauth c/o ICON Investments, 3 Park Avenue, 36th Floor, New York, NY 10016 |
We do not distribute these reports to you directly in order to keep our expenses down as the cost of mailing this report to all investors is significant. Nevertheless, the reports are immediately available upon your request.
Page 15 |