Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|X| Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the quarterly period ended June 30, 2002
|_| Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the transition period from _______ to _______
Commission File Number 333-47196
ATEL Capital Equipment Fund IX, LLC
(Exact name of registrant as specified in its charter)
California 94-3375584
- ---------- ----------
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 989-8800
Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes |_|
No |X|
DOCUMENTS INCORPORATED BY REFERENCE
None
1
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
2
ATEL CAPITAL EQUIPMENT FUND IX, LLC
BALANCE SHEETS
JUNE 30, 2002 AND DECEMBER 31, 2001
(Unaudited)
ASSETS
2002 2001
---- ----
Cash and cash equivalents $16,904,648 $13,568,058
Accounts receivable 1,348,675 1,186,719
Notes receivable 1,594,488 982,262
Investments in leases 37,962,361 21,091,372
----------------- ------------------
Total assets $57,810,172 $36,828,411
================= ==================
LIABILITIES AND MEMBERS' CAPITAL
Accounts payable:
Managing Member $ 181,560 $ 157,719
Other 25,868 24,471
Unearned operating lease income 71,311 95,618
----------------- ------------------
Total liabilities 278,739 277,808
Members' capital 57,531,433 36,550,603
----------------- ------------------
Total members' capital 57,531,433 36,550,603
----------------- ------------------
Total liabilities and members' capital $57,810,172 $36,828,411
================= ==================
See accompanying notes.
3
ATEL CAPITAL EQUIPMENT FUND IX, LLC
STATEMENT OF OPERATIONS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 2002 AND 2001
(Unaudited)
Six Months Three Months
Ended June 30, Ended June 30,
-------------- --------------
2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Leasing activities:
Operating leases $ 2,187,687 $ 1,193,427 $ 1,235,820 $ 1,123,612
Direct financing leases 53,396 21,997 32,244 16,429
Gain on sales of assets 107,353 - 107,353 -
Interest 271,501 73,192 164,910 59,292
Other 319 2,501 183 (2,499)
----------------- ------------------ ----------------- ------------------
2,620,256 1,291,117 1,540,510 1,196,834
Expenses:
Depreciation and amortization 1,806,647 579,638 1,022,111 538,350
Cost reimbursements to Managing Member 118,586 229,551 65,732 163,091
Asset management fees to Managing Member 93,693 20,891 35,437 19,093
Professional fees 32,857 - 8,832 -
Interest expense 19,263 181,868 19,263 162,541
Other 133,563 12,214 52,209 9,623
----------------- ------------------ ----------------- ------------------
2,204,609 1,024,162 1,203,584 892,698
----------------- ------------------ ----------------- ------------------
Net income $ 415,647 $ 266,955 $ 336,926 $ 304,136
================= ================== ================= ==================
Net income:
Managing member $ 197,341 $ 197,341 $ 110,831 $ 197,441
Other members 218,306 69,614 226,095 106,795
----------------- ------------------ ----------------- ------------------
$ 415,647 $ 266,955 $ 336,926 $ 304,136
================= ================== ================= ==================
Net income per Limited Liability Company Unit $0.04 $0.07 $0.04 $0.09
Weighted average number of Units outstanding 5,728,798 994,685 6,394,522 1,226,514
STATEMENT OF CHANGES IN MEMBERS' CAPITAL
SIX MONTH PERIOD ENDED
JUNE 30, 2002
(Unaudited)
Other Members Managing
-------------
Units Amount Member Total
Balance December 31, 2001 4,363,409 $36,550,603 $ - $36,550,603
Capital contributions 2,656,308 26,563,080 26,563,080
Less selling commissions to affiliates (2,523,493) (2,523,493)
Other syndication costs to affiliates (843,195) (843,195)
Distributions to members (2,433,868) (197,341) (2,631,209)
Net income 218,306 197,341 415,647
----------------- ------------------ ----------------- ------------------
Balance June 30, 2002 7,019,717 $57,531,433 $ - $57,531,433
================= ================== ================= ==================
See accompanying notes.
4
ATEL CAPITAL EQUIPMENT FUND IX, LLC
STATEMENT OF CASH FLOWS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 2002 AND 2001
(Unaudited)
Six Months Three Months
Ended June 30, Ended June 30,
-------------- --------------
2002 2001 2002 2001
---- ---- ---- ----
Operating activities:
Net income $ 415,647 $ 266,955 $ 336,926 $ 304,136
Adjustments to reconcile net income to cash
provided by operating activities:
Gain on sales of assets (107,353) - (107,353) -
Depreciation and amortization 1,806,647 579,638 1,022,111 538,350
Changes in operating assets and liabilities:
Accounts receivable (161,956) (745,089) (606,352) (658,538)
Accounts payable, Managing Member 23,841 159,346 (133,454) 148,629
Accounts payable, other 1,397 12,357 15,050 10,256
Unearned operating lease income (24,307) 225,586 (159,105) 225,586
----------------- ------------------ ----------------- ------------------
Net cash used in operations 1,953,916 495,239 367,823 568,419
----------------- ------------------ ----------------- ------------------
Investing activities:
Purchases of equipment on operating leases (18,013,963) (9,959,232) (11,154,367) (15,728,777)
Note receivable advances (1,031,605) (1,000,000) 145,423 (31,605)
Purchases of equipment on direct financing leases (980,570) (819,124) - (161,446)
Payments received on notes receivable 419,379 173,921 71,465 267,337
Proceeds from sales of lease assets 749,408 - 749,408 -
Investment in residuals (66,995) (59,147) 24,814 33,005
Payments of initial direct costs to managing
member (352,809) (91,296) (226,082) (312,433)
Reduction of net investment in direct financing
leases 94,646 26,730 60,514 88,031
----------------- ------------------ ----------------- ------------------
Net cash used in investing activities (19,182,509) (11,728,148) (10,328,825) (15,845,888)
----------------- ------------------ ----------------- ------------------
Financing activities:
Capital contributions received 26,563,080 18,343,820 12,096,000 19,439,580
Payment of syndication costs to managing member (3,366,688) (2,751,573) (1,494,427) (2,480,463)
Distributions to members (2,631,209) (177,425) (1,489,122) (2,631,209)
----------------- ------------------ ----------------- ------------------
Net cash provided by financing activities 20,565,183 15,414,822 9,112,451 14,327,908
----------------- ------------------ ----------------- ------------------
Net increase in cash and cash equivalents 3,336,590 4,181,913 (848,551) (949,561)
Cash and cash equivalents at beginning of
period 13,568,058 600 17,753,199 2,082,220
----------------- ------------------ ----------------- ------------------
Cash and cash equivalents at end of period $16,904,648 $ 4,182,513 $16,904,648 $ 1,132,659
================= ================== ================= ==================
Supplemental disclosures of cash flow
information:
Cash paid during the period for interest $ 19,263 $ 181,868 $ 19,263 $ 162,541
================= ================== ================= ==================
See accompanying notes.
5
ATEL CAPITAL EQUIPMENT FUND IX, LLC
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
(Unaudited)
1. Summary of significant accounting policies:
Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the managing member, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Organization and Company matters:
ATEL Capital Equipment Fund IX, LLC (the Fund) was formed under the laws of the
state of California on September 27, 2000 for the purpose of acquiring equipment
to engage in equipment leasing and sales activities. The Fund may continue until
December 31, 2019. Contributions in the amount of $600 were received as of
December 31, 2000, $100 of which represented the Managing Member's continuing
interest, and $500 of which represented the Initial Member's capital investment.
Upon the sale of the minimum amount of Units of Limited Liability Company
interest (Units) of $1,200,000 and the receipt of the proceeds thereof on
February 21, 2001, the Company commenced operations.
The Company does not make a provision for income taxes since all income and
losses will be allocated to the Partners for inclusion in their individual tax
returns.
3. Investment in leases:
The Company's investment in leases consists of the following:
Depreciation
Balance Expense or Reclassi- Balance
December 31, Amortization fications or June 30,
2001 Additions of Leases Dispositions 2002
---- --------- --------- - ------------- ----
Net investment in operating
leases $19,971,408 $18,013,963 $ (1,757,605) $ (642,055) $35,585,711
Net investment in direct financing
leases 750,894 980,570 (94,646) - 1,636,818
Residual values, other 75,983 66,995 - - 142,978
Initial direct costs 293,087 352,809 (49,042) - 596,854
------------------ ----------------- ------------------ ----------------- ------------------
$21,091,372 $19,414,337 $ (1,901,293) $ (642,055) $37,962,361
================== ================= ================== ================= ==================
6
ATEL CAPITAL EQUIPMENT FUND IX, LLC
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
(Unaudited)
3. Investment in leases (continued):
Operating leases:
Property on operating leases consists of the following:
Balance Acquisitions, Dispositions & Balance
December 31, Reclassifications June 30,
-----------------
2001 1st Quarter 2nd Quarter 2002
---- ----------- ----------- ----
Manufacturing $ 989,709 $ 4,052,809 $ 9,217,711 $ 14,260,229
Mining 13,421,219 - - 13,421,219
Marine vessels 5,712,000 - - 5,712,000
Materials handling 207,486 2,211,915 1,936,144 4,355,545
Natural gas compressors 696,451 - - 696,451
Office furniture 998,540 325,719 (762,011) 562,248
Communications - 269,153 - 269,153
----------------- ------------------ ----------------- ------------------
22,025,405 6,859,596 10,391,844 39,276,845
Less accumulated depreciation (2,053,997) (765,391) (871,746) (3,691,134)
----------------- ------------------ ----------------- ------------------
$ 19,971,408 $ 6,094,205 $ 9,520,098 $ 35,585,711
================= ================== ================= ==================
The average assumed residual values for assets on operating leases were 32% at
December 31, 2001 and 26% at June 30, 2002.
Direct financing leases:
As of June 30, 2002, investment in direct financing leases consists office
furniture. The following lists the components of the Company's investment in
direct financing leases as of June 30, 2002:
Total minimum lease payments receivable $ 1,793,310
Estimated residual values of leased equipment (unguaranteed) 209,873
--------------
Investment in direct financing leases 2,003,183
Less unearned income (366,365)
--------------
Net investment in direct financing leases $ 1,636,818
==============
All of the property on leases was acquired in 2001 and 2002.
At June 30, 2002, the aggregate amounts of future minimum lease payments are as
follows:
Direct
Year ending Operating Financing
December 31, Leases Leases Total
------------ ------ ------ -----
Six months ending December 31, 2002 $ 2,646,861 $ 185,518 $ 2,832,379
Year ending December 31, 2003 5,287,677 371,036 5,658,713
2004 5,202,867 371,036 5,573,903
2005 5,152,088 371,036 5,523,124
2006 4,697,562 361,172 5,058,734
Thereafter 2,437,459 133,512 2,570,971
----------------- ------------------ -----------------
$25,424,514 $ 1,793,310 $27,217,824
================= ================== =================
7
ATEL CAPITAL EQUIPMENT FUND IX, LLC
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
(Unaudited)
4. Related party transactions:
The terms of the Limited Company Operating Agreement provide that the Managing
Member and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Company.
The Limited Liability Company Operating Agreement allows for the reimbursement
of costs incurred by the Managing Member in providing services to the Company.
Services provided include Company accounting, investor relations, legal counsel
and lease and equipment documentation. The Managing Member is not reimbursed for
services where it is entitled to receive a separate fee as compensation for such
services, such as acquisition and management of equipment. Reimbursable costs
incurred by the Managing Member are allocated to the Company based upon actual
time incurred by employees working on Company business and an allocation of rent
and other costs based on utilization studies.
Substantially all employees of the Managing Member record time incurred in
performing services on behalf of all of the Companies serviced by the Managing
Member. The Managing Member believes that the costs reimbursed are the lower of
(i) actual costs incurred on behalf of the Company or (ii) the amount the
Company would be required to pay independent parties for comparable
administrative services in the same geographic location and are reimbursable in
accordance with the Limited Liability Company Operating Agreement.
The Managing Member and/or Affiliates earned fees, commissions and
reimbursements, pursuant to the Limited Liability Company Agreement as follows:
2002 2001
---- ----
Selling commissions (equal to 9.5% of the selling price of the Limited Liability
Company units, deducted from Other Members' capital) $ 2,523,493 $ 1,742,663
Reimbursement of other syndication costs to Managing Member 843,195 1,008,910
Costs reimbursed to Managing Member 118,586 229,551
Asset management fees to Managing Member 93,693 20,891
------------- ------------------
$ 3,578,967 $ 3,002,015
============= ==================
5. Member's capital:
As of June 30, 2002, 7,019,717 Units ($70,197,170) were issued and outstanding.
The Company is authorized to issue up to 15,000,050 Units, including the 50
Units issued to the initial members.
The Company's Net Income, Net Losses, and Distributions are to be allocated
92.5% to the Members and 7.5% to the Managing Member. ATEL CAPITAL EQUIPMENT
FUND IX, LLC
8
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
(Unaudited)
8. Line of credit:
The Company participates with the Managing Member and certain of its affiliates
in a $43,654,928 revolving line of credit with a financial institution that
includes certain financial covenants. The line of credit expires on June 28,
2004. As of June 30, 2002, borrowings under the facility were as follows:
Amount borrowed by the fund under the acquisition facility $ -
Amounts borrowed by affiliated partnerships and limited liability companies under the acquisition
facility 23,000,000
----------------
Total borrowings under the acquisition facility 23,000,000
Amounts borrowed by the Managing Member and its sister corporation under the warehouse facility -
----------------
Total outstanding balance $ 23,000,000
================
Total available under the line of credit $ 43,654,928
Total outstanding balance (23,000,000)
----------------
Remaining availability $ 20,654,928
================
Draws on the acquisition facility by any individual borrower are secured only by
that borrower's assets, including equipment and related leases. Borrowings on
the warehouse facility are recourse jointly to certain of the affiliated
partnerships and limited liability companies, the Partnership and the General
Partner.
The credit agreement includes certain financial covenants applicable to each
borrower. The Company was in compliance with its covenants as of June 30, 2001.
9. Commitments:
As of June 30, 2002, the Company had outstanding commitments to purchase lease
equipment totaling approximately $4,700,000.
9
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Capital Resources and Liquidity
During the second quarter of 2002 and 2001, the Company's primary activities
were raising funds through its offering of Limited Liability Company Units
(Units) and engaging in equipment leasing activities. Through June 30, 2002, the
Company had received subscriptions for 7,019,717 Units ($70,197,170) all of
which were issued and outstanding.
During the funding period, the Company's primary source of liquidity is
subscription proceeds from the public offering of Units. The liquidity of the
Company will vary in the future, increasing to the extent cash flows from leases
exceed expenses, and decreasing as lease assets are acquired, as distributions
are made to the members and to the extent expenses exceed cash flows from
leases.
As another source of liquidity, the Company has contractual obligations with a
diversified group of lessees for fixed lease terms at fixed rental amounts. As
the initial lease terms expire the Company will re-lease or sell the equipment.
The future liquidity beyond the contractual minimum rentals will depend on the
Managing Member's success in re-leasing or selling the equipment as it comes off
lease.
The Company participates with the Managing Member and certain of its affiliates
in a $43,654,928 revolving line of credit with a financial institution that
includes certain financial covenants. The line of credit expires on June 28,
2004. As of June 30, 2002, borrowings under the facility were as follows:
Amount borrowed by the fund under the acquisition facility $ -
Amounts borrowed by affiliated partnerships and limited liability companies under the acquisition
facility 23,000,000
----------------
Total borrowings under the acquisition facility 23,000,000
Amounts borrowed by the Managing Member and its sister corporation under the warehouse facility -
----------------
Total outstanding balance $ 23,000,000
================
Total available under the line of credit $ 43,654,928
Total outstanding balance (23,000,000)
----------------
Remaining availability $ 20,654,928
================
Draws on the acquisition facility by any individual borrower are secured only by
that borrower's assets, including equipment and related leases. Borrowings on
the warehouse facility are recourse jointly to certain of the affiliated
partnerships and limited liability companies, the fund and the Managing Member.
The Company anticipates reinvesting a portion of lease payments from assets
owned in new leasing transactions. Such reinvestment will occur only after the
payment of all obligations, including debt service (both principal and
interest), the payment of management and acquisition fees to the Managing Member
and providing for cash distributions to the members.
The Company currently has available adequate reserves to meet contingencies, but
in the event those reserves were found to be inadequate, the Company would
likely be in a position to borrow against its current portfolio to meet such
requirements. The Managing Member envisions no such requirements for operating
purposes.
10
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. As of June 30, 2002, such commitments
totaled approximately $4,700,000.
If inflation in the general economy becomes significant, it may affect the
Company inasmuch as the residual (resale) values and rates on re-leases of the
Company's leased assets may increase as the costs of similar assets increase.
However, the Company's revenues from existing leases would not increase, as such
rates are generally fixed for the terms of the leases without adjustment for
inflation.
If interest rates increase significantly, the lease rates that the Company can
obtain on future leases will be expected to increase as the cost of capital is a
significant factor in the pricing of lease financing. Leases already in place,
for the most part, would not be affected by changes in interest rates.
Cash Flows
During the first half of 2002 and 2001, the Company's primary source of
liquidity was the proceeds of its offering of Units.
In 2002 and 2001, the primary source of cash from operations was rents from
operating leases.
Rents from direct financing leases and payments received on notes receivable
were the primary sources of cash from investing activities. Uses of cash for
investing activities consisted of cash used to purchase operating and direct
financing lease assets, payments of initial direct costs associated with the
lease asset purchases and advances on notes receivable.
In 2002 and 2001, the primary source of cash from financing activities was the
proceeds of the Company's public offering of Units of Limited Liability Company
interest. Financing uses of cash consisted of payments of syndication costs
associated with the offering and distributions to the members.
Results of operations
On February 21, 2001, the Company commenced operations. In 2002, operations
resulted in net income of $415,647 for the six month period and $336,926 for the
three month period. In 2001, operations resulted in net income of $266,955 for
the six month period and $304,136 for the three month period. The Company's
primary source of revenues is from operating leases. Depreciation is related to
operating lease assets and thus, to operating lease revenues. They are expected
to increase in future periods as acquisitions continue.
Asset management fees are based on the gross lease rents of the Company plus
proceeds from the sales of lease assets. They are limited to certain percentages
of lease rents, distributions to members and certain other items. As assets are
acquired, lease rents are collected and distributions are made to the members,
these fees are expected to increase.
Interest expense for the first half of 2002 and 2001 related to the borrowings
under the line of credit incurred by an affiliate of the Managing Member. It
included all amounts related to those borrowings related transactions
transferred to the Company. All of the revenues and related carrying costs for
these transactions were attributed to the Company in the same periods.
Results of operations in future periods are expected to vary considerably from
those of the first half of 2002 and 2001 as the Company continues to acquire
significant amounts of lease assets.
11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Inapplicable.
Item 2. Changes In Securities.
Inapplicable.
Item 3. Defaults Upon Senior Securities.
Inapplicable.
Item 4. Submission Of Matters To A Vote Of Security Holders.
Inapplicable.
Item 5. Other Information.
Information provided pursuant to ss. 228.701 (Item 701(f))(formerly
included in Form SR):
(1) Effective date of the offering: January 16, 2001; File Number: 333-47196
(2) Offering commenced: January 16, 2001
(3) The offering did not terminate before any securities were sold.
(4) The offering has not been terminated prior to the sale of all of the
securities.
(5) The managing underwriter is ATEL Securities Corporation.
(6) The title of the registered class of securities is "Units of Limited
Liability Company interest"
(7) Aggregate amount and offering price of securities registered and sold as
of July 31, 2002
12
Aggregate Aggregate
price of price of
offering offering
Amount amount Amount amount
Title of Security Registered registered sold sold
----------------- ---------- ---------- ---- ----
Limited Company units 15,000,000 $150,000,000 7,517,865 $75,178,650
(8)Costs incurred for the issuers account in
connection with the issuance and distribution of
the securities registered for each category listed
below:
Direct or indirect payments to
directors, officers, general
partners of the issuer or their
associates; to persons owning
ten percent or more of any Direct or
class of equity securities of indirect
the issuer; and to affiliates of payments to
the issuer others Total
---------- ------ -----
Underwriting discounts and
commissions $ - $ 7,141,972 $ 7,141,972
Other expenses 3,633,039 3,633,039
----------------- ----------------- ------------------
Total expenses $ - $10,775,011 $10,775,011
================= ================= ==================
(9) Net offering proceeds to the issuer after the total expenses in item 8: $64,403,639
(10) The amount of net offering proceeds to the issuer
used for each of the purposes listed below:
Direct or indirect payments to
directors, officers, general
partners of the issuer or their
associates; to persons owning
ten percent or more of any Direct or
class of equity securities of indirect
the issuer; and to affiliates of payments to
the issuer others Total
---------- ------ -----
Purchase and installation of
machinery and equipment $ - $64,027,746 $64,027,746
Working capital 375,893 375,893
----------------- ----------------- ------------------
$ - $64,403,639 $64,403,639
================= ================= ==================
(11) The use of the proceeds in Item 10 does not
represent a material change in the uses of proceeds
described in the prospectus.
13
Item 6. Exhibits And Reports On Form 8-K.
(a)Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, June 30, 2002 and December 31, 2001.
Statements of operations for the six and three month
periods ended June 30, 2002 and 2001.
Statement of changes in partners' capital for the six
month period ended June 30, 2002.
Statements of cash flows for the six and three month
periods ended June 30, 2002 and 2001.
Notes to the Financial Statements
2. Financial Statement Schedules
All other schedules for which provision is made in the
applicable accounting regulations of the Securities and
Exchange Commission are not required under the related
instructions or are inapplicable, and therefore have been
omitted.
(b) Report on Form 8-K
None
14
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly report on Form 10QSB of ATEL Capital Equipment
Fund IX, LLC, (the "Company") for the period ended June 30, 2002 as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), and
pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the
Sarbanes-Oxley Act of 2002, I, Dean L. Cash, Chief Executive Officer of ATEL
Financial Services, LLC, managing member of the Company, hereby certify that:
1. The Report fully complies with the requirements of
section 13(a) or 15(d) of the Securities Exchange
Act of 1934 ; and
2. The information contained in the Report fairly
presents, in all material respects, the
finanancial condition and results of operations
of the Company.
/s/ DEAN L. CASH
- --------------------------------------
Dean L. Cash
President and Chief Executive
Officer of Managing Member
August 14, 2002
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly report on Form 10QSB of ATEL Capital Equipment
Fund IX, LLC, (the "Company") for the period ended June 30, 2002 as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), and
pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the
Sarbanes-Oxley Act of 2002, I, Paritosh K. Choksi, Chief Financial Officer of
ATEL Financial Services, LLC, managing member of the Company, hereby certify
that:
1. The Report fully complies with the requirements of
section 13(a) or 15(d) of the Securities Exchange
Act of 1934 ; and
2. The information contained in the Report fairly
presents, in all material respects, the
finanancial condition and results of operations
of the Company.
/s/ PARITOSH K. CHOKSI
- --------------------------------------
Paritosh K. Choksi
Executive Vice President of Managing
Member, Principal financial officer of registrant
August 14, 2002
15
SIGNATURES
Pursuant to the requirements 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.
Date:
August 14, 2002
ATEL CAPITAL EQUIPMENT FUND IX, LLC
(Registrant)
By: ATEL Financial Services, LLC
Managing Member of Registrant
By: /s/ DEAN L. CASH
------------------------------------
Dean L. Cash
President and Chief Executive
Officer of Managing Member
By: /s/ PARITOSH K. CHOKSI
-------------------------------------
Paritosh K. Choksi
Executive Vice President of
Managing Member, Principal
financial officer of registrant
By: /s/ DONALD E. CARPENTER
-------------------------------------
Donald E. Carpenter
Principal accounting
officer of registrant
16