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UNITED STATES 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 fiscal year ended December 31, 2003
( ) 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 - 000-21458
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TELECOMMUNICATIONS INCOME FUND IX, L.P.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Iowa 42-1367356
------------------------------ -----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
701 Tama Street, Marion, Iowa 52302
-------------------------------------- --------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 319-447-5700
------------
Securities registered pursuant to Section 12(b) of the Act: NONE
Securities pursuant to section 12 (g) of the Act:
Limited Partnership Interests (the "Units")
--------------
(Title of class)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [X] Yes [ ] No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (ss.229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [X]
Indicate by check mark whether registrant is an accelerated filer (as defined in
Rule 12b-2 of the Securities Exchange Act of 1934). [ ] Yes [X] No
As of June 30, 2003, 65,515 units were issued and outstanding. Based on the book
value of $1.31 per unit at that time, the aggregate market value at June 30,
2003 was $85,825. As of February 4, 2004, 65,344 units were issued and
outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the prospectus included in the Partnership's Post Effective
Amendment No. 4 to the Registration Statement on Form S-1 filed December 22,
1992 are incorporated by reference into Part IV.
TELECOMMUNICATIONS INCOME FUND IX, L.P.
2003 FORM 10-K ANNUAL REPORT
TABLE OF CONTENTS
Page
PART I
Item 1 Business-------------------------------------------------------- 3
Item 2 Properties------------------------------------------------------ 3
Item 3 Legal Proceedings----------------------------------------------- 3
Item 4 Submission of Matters to a Vote of Unit Holders----------------- 4
PART II
Item 5 Market for the Registrant's
Common Equity and Related Stockholders Matters------------------ 4
Item 6 Selected Financial Data----------------------------------------- 4
Item 7 Management's Discussion and Analysis of Financial
Condition and Results of Operations----------------------------- 4
Item 7A Quantitative and Qualitative Disclosures About Market Risk------ 6
Item 8 Financial Statements and Supplementary Data--------------------- 6
Item 9 Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure-------------------------- 19
Item 9A Controls and Procedures----------------------------------------- 19
PART III
Item 10 Directors and Executive Officers of the Registrant-------------- 20
Item 11 Executive Compensation------------------------------------------ 21
Item 12 Security Ownership of Certain Beneficial Owners and Management-- 22
Item 13 Certain Relationships and Related Transactions------------------ 22
Item 14 Principal Accountant Fees and Services-------------------------- 22
PART IV
Item 15 Exhibits, Financial Statement Schedules and Reports on Form 8-K- 23
Signatures------------------------------------------------------ 24
2
PART I
Item 1. Business
--------
Telecommunications Income Fund IX, L.P., an Iowa limited partnership (the
"Partnership"), was organized on April 2, 1991. The general partner is
Commercial Power Finance, Inc. (the "General Partner"), which changed its name
from Berthel Fisher & Company Leasing, Inc. in March 2004, an Iowa corporation
that has been in operation since 1988. The Partnership's business and the
executive offices of the General Partner are located at 701 Tama Street, Marion,
Iowa 52302. Substantially all of the voting stock of the General Partner is
owned by Berthel Fisher & Company ("Berthel Fisher").
The Partnership began offering Units to the public on October 31, 1991 and
continued to offer Units to the public through April 30, 1993. The Partnership
was originally scheduled to dissolve by December 31, 1999. However, in November,
1999, the partners voted to extend the Partnership until December 31, 2005,
unless dissolved sooner due to the occurrence of any of the following events:
(i) the vote by limited partners owning a majority of the Partnership in
accordance with the Partnership Agreement; (ii) the withdrawal, bankruptcy, or
dissolution and liquidation or other cessation to exist as a legal entity of the
General Partner (unless any successor general partner elected in accordance with
the provisions of the Partnership Agreement elects to continue the business of
the Partnership); (iii) the final distribution of all liquidating distributions
among the limited partners pursuant to the Partnership Agreement; or (iv) the
sale or disposition of all or substantially all of the assets of the Partnership
without the subsequent reinvestment in equipment.
The Partnership entered the liquidation phase on May 1, 1998 and must be
dissolved by December 31, 2005. Proceeds from the sale of net assets will be
distributed to Partners.
The Partnership acquired telecommunications equipment (primarily pay telephones
and call processing equipment) and leased the equipment to third parties
generally under full payout leases. The Partnership also acquired other types of
equipment subject to full payout leases. Full payout leases are leases that are
expected to generate gross rental payments sufficient to recover the purchase
price of the equipment and any overhead and acquisition costs.
The General Partner acquired and approved leases on behalf of the Partnership.
The General Partner established guidelines to use in approving lessees.
Generally, before any lease was approved, there was a review of the potential
lessees' financial statements, credit references were checked, and outside
business and/or individual credit reports were obtained.
The Partnership's equipment leases were concentrated in pay telephones,
representing approximately 81%, and 79% of the Partnership's direct finance
lease portfolio at December 31, 2002, and 2001, respectively. Computer equipment
represented approximately 19%, and 19% of the Partnership's portfolio at
December 31, 2002, and 2001, respectively. At December 31, 2003, no lease
contracts remained. The Partnership operates in one segment.
The Partnership has no employees and utilizes the administrative services of the
General Partner for which it pays an administrative service fee.
Item 2. Properties
----------
The Partnership does not own or lease any real estate. The Partnership's
materially important properties consisted entirely of equipment under lease, as
described in Item 1.
Item 3. Legal Proceedings
-----------------
Telcom Management Systems filed a suit against the Partnership, the General
Partner, and others in Federal Court in Dallas, Texas during February 1998. The
plaintiffs purchased equipment from the Partnership out of a bankruptcy for
approximately $450,000. They alleged that when they attempted to sell the
equipment at a later date, the Partnership had not provided good title. The
General Partner filed a Motion for Summary Judgment, which was denied. After
filing the suit, the plaintiff transferred assets in lieu of bankruptcy. No
further action has been taken at this time by the plaintiff. No loss has been
recorded in the financial statements with respect to this matter.
3
Item 4. Submission of Matters to a Vote of Unit Holders
-----------------------------------------------
No matters were submitted to a vote of limited partners, through the
solicitation of proxies or otherwise during the year covered by this report.
PART II
Item 5. Market for the Registrant's Common Equity and Related Stockholder
-----------------------------------------------------------------
Matters
-------
The Registrants' Units are not publicly traded. There is no market for the Units
and it is unlikely that any will develop. The General Partner will resist the
development of a public market for the Units.
Number of Partners
Title of Class at February 4, 2004
--------------------------------------------------
Limited Partners 1,136
General Partner 1
Distributions of $0, $0, $424,940, $300,000, and $1,565,000 were made to
investors in 2003, 2002, 2001, 2000, and 1999, respectively. This represented
distributions per unit of $6.39 for 2001, $4.49 for 2000, and $23.21 for 1999.
Item 6. Selected Financial Data
-----------------------
(Liquidation Basis)
---------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
Dec. 31, 2003 Dec. 31, 2002 Dec. 31, 2001 Dec. 31, 2000 Dec. 31, 1999
------------- ------------- ------------- ------------- -------------
Total Assets $ 62,915 $ 100,712 $ 129,819 $ 969,554 $ 1,593,434
Change in net assets, excluding
distributions and withdrawals $ (40,303) $ 12,463 $ (333,467) $ (85,161) $ 50,608
Distributions to Partners -0- -0- 424,940 300,000 1,565,000
Distributions per Unit -0- -0- 6.39 4.49 23.21
The selected financial data above was derived from the liquidation basis
financial statements of the Partnership from December 31, 1999 through December
31, 2003. As of March 31, 1998, the Partnership adopted the liquidation basis of
accounting. Under liquidation basis accounting, assets are presented at
estimated net realizable value and liabilities are presented at estimated
settlement amounts. The change to liquidation basis accounting may materially
affect the comparability of the selected financial data. The above selected
financial data should be read in connection with the financial statements and
related notes appearing elsewhere in this report.
Item 7. Management's Discussion and Analysis of Financial Condition and Results
-----------------------------------------------------------------------
of Operations
-------------
Results of Operations
On May 1, 1998, the Partnership ceased reinvestment in equipment and leases and
began the orderly liquidation of the Partnership in accordance with the
partnership agreement. As a result, the financial statements beginning with the
second quarter of 1998 have been presented under the liquidation basis of
accounting. Under the liquidation basis of accounting, assets are stated at
their estimated net realizable values and liabilities are stated at their
anticipated settlement amounts. Although management will make every effort to
maximize equity positions as quickly as possible, no assurance can be given that
the Partnership will be dissolved prior to December 31, 2005.
4
As discussed above, the Partnership is in liquidation and does not believe a
comparison of results would be meaningful. The Partnership realized $2,739 in
income from direct financing leases and other income during 2003. Management
decreased its estimate of the liquidation value of net assets during 2003 by
$43,042. This decrease is due to a decrease in the estimated net realizable
value of an equity security held by the Partnership of $18,977, an increase due
to a gain on lease terminations of $19,688, and a net increase in the reserve
for estimated costs during the period of liquidation of $43,753. The net
increase in the reserve for estimated costs included a charge of $88,130 offset
by recoveries of $22,580 and $21,797. The Partnership increased the estimated
net realizable value of its lease portfolio by decreasing its allowance for
possible lease losses by $22,580. In addition, the Partnership received 58,909
common shares of Polar Molecular Holding Corporation ("Polar") in July, 2003 as
a recovery of a previous write-off of notes receivable of Murdock Communications
Corporation ("Murdock"), crediting expense in the amount of $21,797. The
Partnership has accrued the estimated expenses of liquidation, which is $56,912
at December 31, 2003. The General Partner reviews this estimate and will adjust
quarterly, as needed.
The Partnership will make distributions to the partners, to the extent cash is
available for distribution, as its lease portfolio is collected or sold and
equity securities (common shares of Polar) are sold. The valuation of assets and
liabilities necessarily requires many estimates and assumptions and there are
uncertainties in carrying out the liquidation of the Partnership's net assets.
The actual value of the liquidating distributions will depend on a variety of
factors, including the actual timing of distributions to the partners. The
actual amounts are likely to differ from the amounts presented in the financial
statements. Through December 31, 2003, there have been distributions totalling
$21,473,163. As of December 31, 2003, the Partnership had $35,283 of cash on
hand.
The General Partner is engaged directly for its own account in the business of
acquiring and leasing equipment. The General Partner serves as the general
partner of Telecommunications Income Fund X, L.P. ("TIF X") and
Telecommunications Income Fund XI, L.P. ("TIF XI"), publicly owned limited
partnerships that are engaged in the equipment leasing business. Also, an
affiliate of the General Partner serves as a general partner of a privately
offered active limited partnership. As of December 31, 2003, the net proceeds of
the private program, TIF X, and TIF XI have been invested in specific equipment.
TIF X entered the liquidation phase on December 31, 1999. The activities of the
General Partner, in regards to its other leasing activities, has had no impact
on the Partnership to date in management's opinion.
The General Partner is not aware of any regulatory issues that may have a
substantial negative impact on the Partnership's business.
Berthel Fisher & Company (BFC), the parent of the General Partner, had
$2,242,000 of unsecured debt that was due December 31, 2002. This debt was
refinanced in January, 2004 with new notes payable due June, 2008. BFC raised
$725,000 under the debt offering and $712,000 of the $2,242,000 debt due in 2002
was rolled over into the new debt issue. In addition, BFC issued a note payable
to a bank for $1,000,000. The proceeds raised were used to payoff the $1,530,000
of unsecured debt that was not rolled over into the new debt issue.
Liquidity and Capital Resources
Under terms of the Partnership agreement, the Partnership is required to
establish working capital reserves of no less than 1% of the total capital
raised, or $169,755. At December 31, 2003, actual cash on hand was $35,283.
However, upon entering the liquidation phase, the General Partner has
prioritized the liquidation of assets and distributing remaining proceeds to the
partners. Management believes that the cash on hand at December 31, 2003 is
sufficient to satisfy current operating expenses and costs of the Partnership.
The General Partner, has $1.9 million of notes payable due December 31, 2004 and
may not have sufficient liquid assets to repay the notes payable and could
impact its ability to continue as a going concern. The General Partner is
pursuing refinancing and other alternatives to meet its obligations. No
assurance can be provided that the General Partner will be successful in its
efforts.
5
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
----------------------------------------------------------
Equity Price Sensitivity
The following table provides information about the Partnership's not readily
marketable equity security that is sensitive to price changes as of December 31,
2003.
Carrying Amount Fair Value
Common Stock-Polar $ 27,632 $ 27,632
=========== ===========
The Partnership's primary market risk exposure is equity price. The
Partnership's general strategy in owning equity securities is long-term growth
in the equity value of emerging companies in order to increase the rate of
return to the limited partners over the life of the Partnership. The primary
risk of the security held is derived from the underlying ability of the company
invested in to satisfy debt obligations and their ability to maintain or improve
common equity values. In July, 2003, Murdock merged with Polar, a company that
has historically had operating losses, and therefore, the equity price can be
volatile. The Partnership holds 307,027 shares of Polar and at December 31,
2003, the total amount at risk was $27,632. Polar is valued at the market price
less a discount for the lack of marketability. The Partnership is subject to
lock-up agreement with respect to selling these shares until July, 2004. No
assurance can be given that any value can be realized from this investment.
Item 8. Financial Statements and Supplementary Data
-------------------------------------------
The following financial statements and related information as of and for the
years ended December 31, 2003, 2002, and 2001 are included in Item 8:
Independent Auditors' Reports
Statements of Net Assets as of December 31, 2003 and 2002
(Liquidation Basis)
Statements of Changes in Net Assets (Liquidation Basis) for the Years Ended
December 31, 2003, 2002 and 2001
Statements of Cash Flows for the Years Ended December 31, 2003, 2002 and
2001
Notes to Financial Statements
6
McGLADREY & PULLEN
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor's Report
To the Partners
Telecommunications Income Fund IX, L.P.
Marion, Iowa
We have audited the accompanying statement of net assets (liquidation basis) of
Telecommunications Income Fund IX, L.P. (the "Partnership") as of December 31,
2003, and the related statements of changes in net assets (liquidation basis)
and of cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit 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 financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As discussed in Note 1 to the financial statements, the Partnership agreement
required that the orderly liquidation of the Partnership's net assets begin in
the second quarter of 1998, and the Partnership commenced liquidation shortly
thereafter. As a result, the Partnership changed its basis of accounting from
the going-concern basis to the liquidation basis effective March 31, 1998.
In our opinion, such financial statements present fairly, in all material
respects, the net assets of Telecommunications Income Fund IX, L.P. at December
31, 2003, and the changes in its net assets and its cash flows for the year then
ended, in conformity with accounting principles generally accepted in the United
States of America on the basis described in Note 1.
As discussed in Note 1 to the financial statements, because of the inherent
uncertainty of valuation when an entity is in liquidation, the amounts
realizable from the disposition of the remaining assets may differ materially
from the amounts shown in the accompanying financial statements.
/s/ McGladrey & Pullen, LLP
-----------------------------------
McGladrey & Pullen, LLP
Cedar Rapids, Iowa
January 29, 2004
McGladrey & Pullen, LLP is a member firm of RSM International - an affiliation
of separate and independent legal entities.
7
INDEPENDENT AUDITORS' REPORT
To the Partners
Telecommunications Income Fund IX, L.P.
We have audited the accompanying statement of net assets (liquidation basis) of
Telecommunications Income Fund IX, L.P. (the "Partnership") as of December 31,
2002, and the related statements of changes in net assets (liquidation basis)
and of cash flows for each of the two years in the period ended December 31,
2002. These financial statements are the responsibility of the Partnership'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 financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles 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.
As discussed in Note 1 to the financial statements, the Partnership agreement
required that the orderly liquidation of the Partnership's net assets begin in
the second quarter of 1998, and the Partnership commenced liquidation shortly
thereafter. As a result, the Partnership changed its basis of accounting from
the going concern basis to the liquidation basis effective March 31, 1998.
In our opinion, such financial statements present fairly, in all material
respects, the net assets of Telecommunications Income Fund IX, L.P. at December
31, 2002, and the changes in its net assets and its cash flows for each of the
two years in the period ended December 31, 2002, in conformity with accounting
principles generally accepted in the United States of America on the basis
described in Note 1.
As discussed in Note 1 to the financial statements, because of the inherent
uncertainty of valuation when an entity is in liquidation, the amounts
realizable from the disposition of the remaining assets may differ materially
from the amounts shown in the accompanying financial statements.
/s/ DELOITTE & TOUCHE LLP
- -----------------------------
DELOITTE & TOUCHE LLP
Cedar Rapids, Iowa
March 10, 2003
8
Telecommunications Income Fund IX, L.P.
Statements of Net Assets (Liquidation Basis)
December 31, 2003 and 2002
Assets 2003 2002
- ----------------------------------------------------------------------------------
Cash and cash equivalents $ 35,283 $ 56,921
Not readily marketable equity security (Note 2) 27,632 24,812
Net investment in direct financing leases (Notes 3 and 4) -- 18,979
-------- --------
$ 62,915 $100,712
======== ========
Liabilities and Net Assets
- ----------------------------------------------------------------------------------
Accounts payable $ 862 $ 4,149
Lease security deposits -- 831
Reserve for estimated costs during the period of liquidation 56,912 49,971
-------- --------
57,774 54,951
-------- --------
Contingencies (Note 9)
Net assets 5,141 45,761
-------- --------
$ 62,915 $100,712
======== ========
See Notes to Financial Statements.
9
Telecommunications Income Fund IX, L.P.
Statements of Changes in Net Assets (Liquidation Basis)
Years Ended December 31, 2003, 2002, and 2001
- -------------------------------------------------------------------------------
Net assets, December 31, 2000 $ 793,644
Income from direct financing leases 6,753
Interest and other income 7,100
Change in estimate of liquidation value of net assets (Note 1) (347,320)
Distributions to partners ($6.39 per unit) (Note 6) (424,940)
Withdrawals of limited partners (1,572)
---------
Net assets, December 31, 2001 33,665
Income from direct financing leases 7,293
Interest and other income 1,794
Change in estimate of liquidation value of net assets (Note 1) 3,376
Withdrawals of limited partners (367)
---------
Net assets, December 31, 2002 45,761
Income from direct financing leases 2,286
Interest and other income 453
Change in estimate of liquidation value of net assets (Note 1) (43,042)
Withdrawals of limited partners (317)
---------
Net assets, December 31, 2003 $ 5,141
=========
See Notes to Financial Statements.
10
Telecommunications Income Fund IX, L.P.
Statements of Cash Flows
Years Ended December 31, 2003, 2002, and 2001
2003 2002 2001
- ------------------------------------------------------------------------------------------
Cash Flows from Operating Activities:
Change in net assets excluding distributions and
withdrawals $ (40,303) $ 12,463 $(333,467)
Adjustments to reconcile to net cash (used in)
operating activities:
Liquidation basis adjustments 43,042 (3,376) 347,320
Recovery received in the form of common stock (21,797) -- --
Reduction in provision for possible lease losses (22,580) -- --
Changes in operating assets and liabilities:
Other assets -- 3,002 1,824
Accounts payable (3,287) 680 (6,214)
Accrued expenses and other liabilities (36,812) (58,951) (69,216)
--------- --------- ---------
Net cash (used in) operating activities (81,737) (46,182) (59,753)
--------- --------- ---------
Cash Flows from Investing Activities:
Repayments of direct financing leases 34,764 52,035 391,926
Proceeds from sale or termination of direct
financing leases 26,483 4,154 12,166
Net lease security deposits paid (831) (3,932) (4,326)
--------- --------- ---------
Net cash provided by investing activities 60,416 52,257 399,766
--------- --------- ---------
Cash Flows (Used In) Financing Activities,
distributions and withdrawals paid to partners (317) (367) (426,512)
--------- --------- ---------
Net increase (decrease) in cash and
cash equivalents (21,638) 5,708 (86,499)
Cash and cash equivalents:
Beginning 56,921 51,213 137,712
--------- --------- ---------
Ending $ 35,283 $ 56,921 $ 51,213
========= ========= =========
See Notes to Financial Statements.
11
Telecommunications Income Fund IX, L.P.
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 1. Nature of Business and Significant Accounting Policies
Nature of business:
Telecommunications Income Fund IX, L.P. (the "Partnership") was formed on
April 2, 1991 under the Iowa Limited Partnership Act. The general partner
is Commercial Power Finance, Inc. (the "General Partner"), which changed
its name from Commercial Power Finance, Inc. in March 2004, an Iowa
corporation. During its offering period, the Partnership sold 68,007 units
of partnership interests at a price per unit of $250.
The Partnership operates in one segment. The Partnership's operations are
conducted throughout the United States. The Partnership primarily acquired
equipment for lease to third parties. Certain agreements exceed 10% of the
Partnership's direct finance lease and notes receivable portfolio (see Note
3). The Partnership ceased reinvestment in equipment and leases and began
the orderly liquidation of Partnership assets on May 1, 1998 as required by
the Partnership agreement. Originally, the Partnership was required to
dissolve on December 31, 1999. During November 1999, the limited partners
approved an amendment to extend the term of the Partnership to December 31,
2005 to allow for the orderly liquidation of the remaining assets.
Significant accounting policies:
Basis of presentation: The Partnership began the orderly liquidation of
Partnership assets in the second quarter of 1998 as discussed above. As a
result, on March 31, 1998 the Partnership adopted the liquidation basis of
accounting. The statements of net assets and the statements of changes in
net assets have been prepared on the liquidation basis. Accordingly, assets
have been valued at an estimated net realizable value and liabilities
include estimated costs associated with carrying out the plan of
liquidation.
Changes in the estimated liquidation value of net assets during the years
ended December 31, 2003, 2002, and 2001 are summarized as follows:
2003 2002 2001
--------- --------- ---------
Change in estimate of liquidation value of:
Securities $ (18,977) $ 8,654 $ (81,408)
Direct financing leases and notes receivable 19,688 15,722 (265,912)
Reserve for estimated costs during the
period of liquidation (43,753) (21,000) --
--------- --------- ---------
$ (43,042) $ 3,376 $(347,320)
========= ========= =========
The valuation of assets and liabilities necessarily requires many estimates
and assumptions and there are uncertainties in carrying out the liquidation
of the Partnership's net assets. The actual value of the liquidating
distributions will depend on a variety of factors, including the actual
timing of distributions to partners. The actual amounts are likely to
differ from the amounts presented in the financial statements.
12
Telecommunications Income Fund IX, L.P.
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 1. Nature of Business and Significant Accounting Policies (Continued)
Use of estimates: The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ significantly from those estimated. Material
estimates that are particularly susceptible to significant change in the
near-term relate to the determination of the net realizable values of the
Partnership's assets and the reserve for estimated costs during the period
of liquidation.
The Partnership's equity security at December 31, 2003 consists of a common
stock investment in one company. A prospective buyer may require a
substantially lower price than currently estimated and the prospects of
this company may deteriorate. These factors, among others, could have a
material near-term impact on the net realizable value of its equity
security.
Certain risk concentrations: The Partnership's portfolio of lease
receivables were concentrated in pay telephones and computer equipment,
representing approximately 81% and 19% at December 31, 2002, respectively,
of the Partnership's direct finance lease portfolio.
Two customers represented 100% of the Partnership's net investment in
direct financing leases at December 31, 2002.
Related party transactions: In fulfilling its role as general partner,
Commercial Power Finance, Inc. enters into transactions with the
Partnership in the normal course of business. Further, the Partnership also
enters into transactions with affiliates of Commercial Power Finance, Inc.
These transactions are set forth in the notes that follow. Management is of
the opinion that these transactions are in accordance with the terms of the
Agreement of Limited Partnership.
Cash and cash equivalents: The Partnership considers all highly liquid
investments with a maturity of three months or less when purchased to be
cash equivalents.
Equity securities: The Partnership's common equity security is restricted
as to sale in the public market under rules of the Securities and Exchange
Commission. The common equity security is valued at an estimated discount
from the published market price reflective of its more illiquid nature.
Net investment in direct financing leases: The Partnership's primary
activity consisted of leasing telecommunications equipment under direct
financing leases generally over a period of three to five years. At the
time of closing a direct financing lease, the Partnership recorded the
gross lease contract receivable, the estimated unguaranteed residual value,
and unearned lease income. The unearned lease income represents the excess
of the gross lease receivable plus the estimated unguaranteed residual
value over the cost of the equipment leased. In addition, the Partnership
capitalized all initial direct costs associated with originating the direct
financing lease. The unearned income and initial direct costs are amortized
to income over the lease term so as to produce a constant periodic
rate-of-return on the net investment in the lease. Lessees are responsible
for all taxes, insurance, and maintenance costs.
The realization of the estimated unguaranteed residual value of leased
equipment depends on the value of the leased equipment at the end of the
lease term and is not a part of the contractual agreement with the lessee.
Estimated residual values are based on estimates of amounts historically
realized by the Partnership for similar equipment and are periodically
reviewed by management for possible impairment.
13
Telecommunications Income Fund IX, L.P.
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 1. Nature of Business and Significant Accounting Policies (Continued)
Allowance for possible loan and lease losses: The Partnership performed
credit evaluations prior to approval of a loan and lease. Subsequently, the
creditworthiness of the customer and the value of the underlying assets are
monitored on an ongoing basis. Under its lease agreements, the Partnership
retains legal ownership of the leased asset. The Partnership maintains an
allowance for possible loan and lease losses which could arise should
customers become unable to discharge their obligations under the loan and
lease agreements. The allowance for possible loan and lease losses is
maintained at a level deemed appropriate by management to provide for known
and inherent risks in the loan and lease portfolio. The allowance is based
upon a continuing review of past loss experience, current economic
conditions, delinquent loans and leases, an estimate of potential loss
exposure on significant customers in adverse situations, and the underlying
asset value. The consideration of such future potential losses also
includes an evaluation for other than temporary declines in value of the
underlying assets. Loans and leases, which are deemed uncollectible, are
charged off and deducted from the allowance. The provision for possible
loan and lease losses and recoveries are added to the allowance.
Net realizable value of net investment in direct financing leases:
Management, in arriving at the net realizable value of the Partnership's
net investment in direct financing leases, considers the contractual
repayment schedule, the estimated duration of the liquidation period, the
customer and industry concentration risk, and interest rate levels, among
other factors, in arriving at a discount to apply to the portfolio to
estimate its net realizable value.
Tax status: Under present income tax laws, the Partnership is not liable
for income taxes, as each partner recognizes a proportionate share of the
Partnership's income or loss in their income tax return. Accordingly, no
provision for income taxes is made in the financial statements of the
Partnership.
Net distributions per partnership unit: Net distributions per partnership
unit are based on the weighted average number of units outstanding
(including both General and limited partners' units).
Note 2. Equity Security
The Partnership's not readily marketable equity security consists of the
following at December 31, 2003 and 2002:
2003 2002
-------- --------
248,188 shares of common stock of Murdock Communications
Corporation as of December 31, 2002 $ -- $ 24,812
307,027 shares of common stock of Ploar Molecular Holding
Corporation as of December 31, 2003 27,632 --
-------- --------
$ 27,632 $ 24,812
======== ========
In July 2003, Murdock merged with Polar, a company that has historically had
operating losses, and therefore, the equity price can be volatile. The
Partnership holds 307,027 shares of Polar and at December 31, 2003, the total
amount at risk was $27,632. Polar is valued at the market price less a discount
for the lack of marketability. The Partnership is subject to a lock-up agreement
with respect to selling these shares until July 2004. No assurance can be given
that any value can be realized from this investment.
14
Telecommunications Income Fund IX, L.P.
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 3. Net Investment in Direct Financing Leases
The Partnership's net investment in direct financing leases consists of the
following at December 31, 2003 and 2002:
2003 2002
--------- ---------
Minimum lease payments receivable $ -- $ 45,330
Estimated unguaranteed residual values -- 2
Unearned income -- (3,429)
Adjustment to estimated net realizable value -- (22,924)
--------- ---------
Net investment in direct
financing leases $ -- $ 18,979
========= =========
The Partnership leases equipment or provides financing to certain companies for
which the General Partner or its affiliates have an ownership interest in,
provide financing to, or provide investment advisory services for such
companies. The Partnership's net investments in direct financing leases with
these companies were none and $8,005 as of December 31, 2003 and 2002,
respectively.
Four customers accounting for 10% or more of the amount of income from direct
financing leases during one or more of the years presented are as follows:
2003 2002 2001
----------------------------
Customer A 100% 94% - %
Customer B - - 49
Customer C - - 22
Customer D - - 18
Note 4. Allowance for Possible Loan and Lease Losses
The changes in the allowance for possible loan and lease losses for the years
ended December 31, 2003, 2002, and 2001 are as follows:
2003 2002 2001
--------- --------- ---------
Balance, beginning $ 22,924 $ 26,403 $ 75,897
Provision (22,580) -- 70,000
Charge-offs, net of recoveries (344) (3,479) (119,494)
--------- --------- ---------
Balance, ending $ -- $ 22,924 $ 26,403
========= ========= =========
The allowance for possible loan and lease losses consisted of specific
aIlowances of none, $22,924, and none for certain leases and general unallocated
allowances of none, none, and $26,403 as of December 31, 2003, 2002, and 2001,
respectively. The allowance at December 31, 2003, 2002, and 2001 is included in
the estimated net realizable value adjustment discussed in Note 3.
15
Telecommunications Income Fund IX, L.P.
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 4. Allowance for Possible Loan and Lease Losses (Continued)
In June 2000, the Partnership's two leases with Murdock Communications
Corporation ("Murdock") were converted to notes and stock as part of a
restructuring. At the time of the restructuring, the Partnership's net
investment in the contracts totaled $174,811. The Partnership received two notes
and recorded these at their estimated net realizable value of $127,879 and
34,947 (adjusted for a stock split) shares of preferred stock in AcTel, a not
readily marketable security. The estimated net realizable value of the AcTel
preferred stock was $78,630 at December 31, 2000. The Partnership did not accrue
interest on the notes receivable due to the uncertainty of Murdock's ability to
pay. The Partnership established a specific allowance of $47,846 at December 31,
2000 for the notes receivable related to this uncertainty. The Partnership
increased the allowance for loan and lease losses by $70,000 in 2001 and
wrote-off the carrying value of the notes receivable as Murdock's primary asset
was AcTeI preferred stock and AcTel filed for bankruptcy in April 2001.
Note 5. Equipment
In August 2000, the Partnership recorded a note receivable for $870,000 for
equipment previously held under an operating lease. The buyer was scheduled to
make three payments totaling $870,000. Payments totaling $329,278 were made in
2000 and 2001, resulting in a $540,722 note receivable balance at the end of the
first quarter of 2001. Due to nonpayment on the note receivable, a new agreement
was signed selling the equipment for $348,000, which was collected in full
during 2001. The new agreement resulted in a loss of $192,722 for the
Partnership.
Note 6. Limited Partnership Agreement
The Partnership was formed pursuant to an Agreement of Limited Partnership dated
as of April 2, 1991 and amended August 12, 1991 (the "Agreement"). The Agreement
outlines capital contributions to be made by the partners and the allocation of
cash distributions, net income, and net loss to the partners. Capital
contributions by the partners to the Partnership consist of the $10,000
contributed by the General Partner and the amounts contributed by limited
partners for the purchase of their units.
Net income or net loss allocated to the limited partners will be apportioned
among them based on the number of limited partnership units held and on the
number of months within the respective year that such units were held. Any share
of Partnership net loss will first be allocated to the limited partners to the
extent of their positive capital account balances. Any share of additional net
loss will be allocated to the General Partner. Any Partnership net income will
first be allocated to partners with negative capital accounts in proportion to,
and to the extent of, such negative capital accounts. Except as provided below,
any additional net income will then be allocated to the General Partner and
limited partners based on number of units held. During liquidation of the
Partnership, when cash distributions are to be made 80% to the limited partners
and 20% to the General Partner (see below), net income will be allocated 80% to
the limited partners and 20% to the General Partner.
During the Partnership's operating phase, to the extent there is cash available
for distribution, cash distributions will be made on a monthly or quarterly
basis in the following order of priority: first, to reimburse the General
Partner for administrative services it provides to the Partnership, as further
described in the Agreement (see Note 7); second, to the limited partners up to
amounts representing a 12% annual return on their adjusted capital contribution
(as defined), of which 8% annually will be cumulative; and third, to the General
Partner, representing a monthly equipment management fee of 5% of the gross
rental payments received by the Partnership. To the extent that cash is not
available to pay all or a portion of the equipment management fee pursuant to
the above priority distributions, such fee will accrue and accumulate. Any
remaining cash distributions after payment of the above (including arrearages)
will be paid, at the discretion of the General Partner, to the limited partners.
16
Telecommunications Income Fund IX, L.P.
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 6. Limited Partnership Agreement (Continued)
During the Partnership's liquidation phase, cash available for distribution will
be distributed in the following order of priority: first, for payment of the
General Partner's administrative services expense described above; second, to
the limited partners for any arrearage in their 8% cumulative priority return;
third, to the limited partners for 100% of their adjusted capital contributions;
fourth, to the limited partners, distributions totaling 12% annually,
noncompounded, on their adjusted capital contributions; fifth, to the General
Partner for any arrearage in its equipment management fee; and, sixth, 80% to
the limited partners and 20% to the General Partner (provided, however, that the
General Partner will not receive such amounts unless the limited partners have
received total distributions equal to their capital contribution plus a 12%
annualized return).
Note 7. Administrative Services Agreement
The General Partner is reimbursed for certain administrative costs under an
administrative services agreement. Amounts incurred by the Partnership pursuant
to this agreement amounted to $36,000, $9,500, and $12,000 for the years ended
December 31, 2003, 2002, and 2001, respectively.
Note 8. Reconciliation of Financial and Income Tax Reporting Basis
A reconciliation of the change in net assets (excluding distributions and
withdrawals) for financial reporting purposes with net income (loss) reported
for income tax purposes for the years ended December 31, 2003, 2002, and 2001 is
as follows:
NOTE 2003 2002 2001
-------------------- -------------------- --------------------
Amount Per Unit Amount Per Unit Amount Per Unit
--------- ------- --------- ------- --------- -------
Change in net assets (excluding
distributions and withdrawals)
for financial reporting purposes $ (40,303) $ (.62) $ 12,463 $ .19 $(333,467) $ (5.01)
Adjustments to convert direct
financing leases to operating
leases for income tax purposes (25,063) (.38) (13,053) (.20) (385,031) (5.79)
Net change in allowance for
possible loan and lease losses 44,721 .68 (3,479) (.05) (119,494) (1.80)
Gain (loss) on lease
terminations (16,662) (.25) (23,040) (.35) 6,260 .09
Net realizable value adjustments 43,042 .66 (3,376) (.05) 347,320 5.23
--------- ------- --------- ------- --------- -------
Net income (loss) for
income tax reporting
purposes $ 5,735 $ .09 $ (30,485) $ (.46) $(484,412) $ (7.28)
========= ======= ========= ======= ========= =======
17
Telecommunications Income Fund IX, L.P.
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 9. Contingencies
Telcom Management Systems filed a suit against the Partnership, the General
Partner, and others in Federal Court in Dallas, Texas during February 1998. The
plaintiffs purchased equipment from the Partnership out of a bankruptcy for
approximately $450,000. They alleged that when they attempted to sell the
equipment at a later date, the Partnership had not provided good title. The
General Partner filed a Motion for Summary Judgment, which was denied. After
filing the suit, the plaintiff transferred assets in lieu of bankruptcy. No
further action has been taken at this time by the plaintiff. No loss has been
recorded in the financial statements with respect to this matter.
Berthel Fisher & Company (BFC), the parent of the General Partner, had
$2,242,000 of unsecured debt that was due December 31, 2002. This debt was
refinanced in January 2004 with new notes payable due June 2008. BFC raised
$725,000 under the debt offering and $712,000 of the $2,242,000 debt due in 2002
was rolled over into the new debt issue. In addition, BFC issued a note payable
to a bank for $1,000,000. The proceeds raised were used to payoff the $1,530,000
of unsecured debt that was not rolled over into the new debt issue.
The General Partner has $1,900,000 of notes payable due December 31, 2004 and
may not have sufficient liquid assets to repay the notes payable and could
impact its ability to continue as a going-concern. The General Partner is
pursuing refinancing and other alternatives to meet its obligations. No
assurance can be provided that the General Partner will be successful in its
efforts.
Note 10. Quarterly Financial Information (Unaudited)
First Second Third Fourth Total
--------------------------------------------------------
2003
--------------------------------------------------------
Income from direct financing leases $ 1,024 $ 730 $ 424 $ 108 $ 2,286
Interest and other income 116 75 60 202 453
Withdrawals of limited partners (119) -- -- (198) (317)
Change in estimate of liquidation
value of net assets (37,005) 74,968 (84,076) 3,071 (43,042)
-------- -------- -------- -------- --------
$(35,984) $ 75,773 $(83,592) $ 3,183 $(40,620)
======== ======== ======== ======== ========
2002
--------------------------------------------------------
Income from direct financing leases $ 2,561 $ 1,844 $ 1,580 $ 1,308 $ 7,293
Interest and other income 181 253 1,195 165 1,794
Withdrawals of limited partners (92) (49) (102) (124) (367)
Change in estimate of liquidation
value of net assets 35,921 (12,118) 18,180 (38,607) 3,376
-------- -------- -------- -------- --------
$ 38,571 $(10,070) $ 20,853 $(37,258) $ 12,096
======== ======== ======== ======== ========
18
Item 9. Changes in and Disagreements with Accountants on Accounting and
---------------------------------------------------------------
Financial Disclosure
--------------------
On October 13, 2003, Telecommunications Income Fund IX, L.P. notified Deloitte &
Touche (Deloitte) that it would be dismissing Deloitte and appointing a new
independent certifying accountant for the current fiscal year. The Partnership
has engaged McGladrey & Pullen, LLP as its new independent certifying accountant
for the current fiscal year.
Prior to such notification, the Partnership did not consult with McGladrey &
Pullen, LLP regarding the application of accounting principles to a specific
completed or contemplated transaction or any matter that was either the subject
of a disagreement or a reportable event. The Partnership also did not consult
with McGladrey & Pullen, LLP regarding the type of opinion that might be
rendered on the Partnership's financial statements.
The reports of Deloitte on the Partnership's financial statements for the fiscal
years ended December 31, 2002 and 2001 contained no adverse opinion or
disclaimer of opinion and were not qualified or modified as to uncertainty,
audit scope or accounting principles other than the reports included an
explanatory paragraph as to the uncertainty of valuation of an entity in
liquidation and the amounts realizable from the disposition of the remaining
assets. In connection with its audits for the fiscal years ended December 31,
2002 and 2001 and the subsequent interim accounting period preceding the
Partnership's notification to Deloitte of its intention to dismiss such firm,
there has been no disagreements with Deloitte on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure that, if not resolved to the satisfaction of Deloitte, would have
caused such firm to make reference to the subject matter of the disagreement(s)
in connection with this report.
The Audit Committee of the Parent of the General Partner participated in and
approved the decision to change the Partnership's external auditors and the
Board made the appointment.
Item 9A. Controls and Procedures
-----------------------
Evaluation of Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of
the Partnership's management, including the Chief Executive Officer (CEO) and
Chief Financial Officer (CFO), of the effectiveness of our disclosure controls
and procedures. Based on that evaluation, the CEO and CFO concluded that as of
the end of the period covered by this report, our disclosure controls and
procedures are effective to provide reasonable assurance that information
required to be disclosed by us in reports that we file or submit under the
Securities Exchange of 1934 is recorded, processed, summarized, and timely
reported as provided in the SEC's rules and forms.
Changes in Internal Controls
No changes occurred since the quarter ended September 30, 2003 in our internal
controls over financial reporting that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.
19
PART III
Item 10. Directors & Executive Officers of the Registrant
------------------------------------------------
A. The General Partner of the registrant:
Commercial Power Finance, Inc., an Iowa corporation.
B. Executive officers of the General Partner of the Registrant:
Thomas J. Berthel (age 52) - Mr. Berthel is the Chief Executive
Officer, President, and Director of the General Partner, a position he has held
since the General Partner's inception in 1988. Mr. Berthel is also President and
a Director of the General Partner's parent, Berthel Fisher & Company ("Berthel
Fisher"), which he founded in 1985, and Berthel Fisher's other subsidiaries,
Berthel Fisher & Company Financial Services, Inc.; Berthel Fisher & Company
Management Corp.; Berthel Fisher & Company Planning, Inc.; and one other
corporation which acts as general partner of a separate private program. He also
serves as the Chairman of the Board and Director of Amana Colonies Golf Course,
Inc. Mr. Berthel holds a bachelor's degree from St. Ambrose College in
Davenport, Iowa (1974). From 1974 to 1982, Mr. Berthel was President and
majority shareholder of Insurance Planning Services Corporation in Maquoketa,
Iowa, which was engaged in the operation of a securities and insurance business.
Mr. Berthel holds a Financial and Operation Principal license issued by the
National Association of Securities Dealers, Inc. Mr. Berthel is also a Certified
Life Underwriter. Mr. Berthel also serves as an individual general partner of
the limited partnership referred to above. Mr. Berthel received a MBA degree
from the University of Iowa in 1993.
Ronald O. Brendengen (age 49) - Mr. Brendengen is the Treasurer, Chief
Operating Officer, Chief Financial Officer, and a Director (1988 to present) of
the General Partner. He was elected to his current offices in January 1998. He
had previously served as Secretary (1994 - March, 1995), Treasurer (August 1995
- - 1988) and Chief Financial Officer (1994 - August 1995) of the General Partner.
He served as Controller (1985-1993), Treasurer (1987-present), Chief Financial
Officer, Secretary and a Director (1987-present), and was also elected Chief
Operating Officer in January 1998, of Berthel Fisher & Company, the parent
company of the General Partner. Mr. Brendengen serves as the Treasurer, Chief
Financial Officer and a Director of Berthel Fisher & Company Planning, Inc., the
trust advisor of Berthel Growth & Income Trust I, a company required to file
reports pursuant to the Securities Exchange Act of 1934. He also serves in
various offices and as a Director of each subsidiary of Berthel Fisher &
Company. Mr. Brendengen holds a certified public accounting certificate and
worked in public accounting during 1984 and 1985. From 1979 to 1984, Mr.
Brendengen worked in various capacities for Morris Plan and MorAmerica Financial
Corp., Cedar Rapids, Iowa. Mr. Brendengen attended the University of Iowa before
receiving a bachelor's degree in Accounting and Business Administration with a
minor in Economics from Mt. Mercy College, Cedar Rapids, Iowa, in 1978.
20
Item 11. Executive Compensation
----------------------
Set forth is the information relating to all direct remuneration paid or accrued
by the Registrant during the last three years to the General Partner:
(A) (B) (C) (C1) (C2) (D)
Securities of
property
insurance Aggregate
benefits or of
Cash and Cash reimbursement contingent
Name of individual and Year equivalent forms personal or forms of
capacities which served ended of remuneration Fees benefits remuneration
- -------------------------------------------------------------------------------------------------------------------------
Commercial Power Finance, Inc. 2003 $0 $ 36,000 $0 $0
General Partner 2002 $0 $ 9,500 $0 $0
2001 $0 $ 12,000 $0 $0
21
Item 12. Security Ownership of Certain Beneficial Owners and Management
--------------------------------------------------------------
(a) No person owns of record, or is known by the Registrant to
own beneficially, more than five percent of the Partnership
Units.
(b) The General Partner of the Registrant owns Units of the
Registrant set forth in the following table.
(1) (2) (3) (4)
Name and Address of Amount and Nature of
Title of Class Beneficial Ownership Beneficial Ownership Percent of Class
- -------------- -------------------------- -------------------- ----------------
Units Commercial Power Finance, Inc. Forty (40) Units; 0.06%
701 Tama Street
Marion, IA 52302
Item 13. Certain Relationships and Related Transactions
----------------------------------------------
Related party transactions are described in Notes 3 and 7 of the notes to the
financial statements.
Item 14. Principal Accountant Fees and Services
--------------------------------------
Audit and Non-Audit Fees
The following table presents fees for professional audit services rendered by
McGladrey & Pullen, LLP for the audit of Telecommunications Income Fund IX, L.P.
annual financial statements for the year ended December 31, 2003, and fees
billed for other services rendered by McGladrey & Pullen, LLP and RSM McGladrey,
Inc. (an affiliate of McGladrey & Pullen, LLP).
2003
- --------------
Audit Fees (1) $ 7,875
Audit-Related Fees -0-
Tax Services -0-
All Other Fees -0-
(1) Audit fees consist of fees for professional services rendered for the audit
of Telecommunications Income Fund IX, L.P.'s (the "Partnership") financial
statements and review of financial statements included in Partnership's third
quarter report and services normally provided by the independent auditor in
connection with statutory and regulatory filings or engagements.
22
PART IV
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
----------------------------------------------------------------
(a) 1. Financial Statements.
Page No.
--------
Statements of Net Assets as of December 31, 2003
and 2002 (Liquidation Basis) 9
Statements of Changes in Net Assets (Liquidation Basis)
for the Years Ended December 31, 2003, 2002
and 2001 10
Statements of Cash Flows for the Years Ended
December 31, 2003, 2002 and 2001 11
Notes to Financial Statements 12
2. Financial Statements Schedules
Information pursuant to Rule 12-09 (Schedule II) is included in
the financial statements and notes thereto.
3. Exhibits
3,4 Amended and Restated Agreement of
Telecommunications Income Fund IX, L.P. currently in
effect dated as of August 12, 1991 (1)
31.1 Certification of Chief Executive Officer
31.2 Certification of Chief Financial Officer
32.1 Certification of Chief Executive Officer Pursuant to 18
U.S.C. Section 1350
32.2 Certification of Chief Financial Officer Pursuant to 18
U.S.C. Section 1350
(b) Reports on Form 8-K
A report was filed on October 16, 2003 for a Change in
Registrant's Certifying Accountant.
- -----------------------------
(1) Incorporated herein by reference to Partnership Exhibit A to the
prospectus included in the Partnership's post effective amendment No. 4 to Form
S-1 registration statement filed on December 22, 1992.
23
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.
TELECOMMUNICATIONS INCOME FUND IX, L.P.
---------------------------------------
(Registrant)
By Commercial Power Finance, Inc.
By: /s/ Thomas J. Berthel Date: March 29, 2004
--------------------------------
Thomas J. Berthel
President, Chief Executive Officer
By Commercial Power Finance, Inc.
By: /s/ Ronald O. Brendengen Date: March 29, 2004
--------------------------------
Ronald O. Brendengen
Chief Operating Officer,
Chief Financial Officer, Treasurer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.
/s/ Thomas J. Berthel Date: March 29, 2004
- ------------------------------------
Thomas J. Berthel
Chief Executive Officer
President, Director
Commercial Power Finance, Inc.
Corporate General Partner
/s/ Ronald O. Brendengen Date: March 29, 2004
- ------------------------------------
Ronald O. Brendengen
Chief Operating Officer,
Chief Financial Officer,
Treasurer, Director
Commercial Power Finance, Inc.
Corporate General Partner
/s/ Daniel P. Wegmann Date: March 29, 2004
- ------------------------------------
Daniel P. Wegmann
Controller
Commercial Power Finance, Inc.
Corporate General Partner
/s/ Leslie D. Smith Date: March 29, 2004
- ------------------------------------
Leslie D. Smith
Director
Commercial Power Finance, Inc.
Corporate General Partner
24