ICON Equipment & Corporate Infrastructure Fund Fourteen, L.P. - FORM 8-K - EX-99.1 - February 19, 2013

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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
 
 
 
 
 

 

 

 

 
Portfolio Overview
 
Q3 2012
 
 
 
 


 
 
 
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
 
   Table of Contents    
        
   Letter from the CEOs  1  
       
   Introduction to Portfolio Overview   2  
       
   New Investments  2  
       
   Recent Dispositions  4  
       
   Portfolio Overview  5  
       
   Revolving Line of Credit  7  
       
   Perfomance Analysis  8  
       
   Transactions with Related Parties  9  
       
   Financial Statements  12  
       
   Forward Looking Information  17  
 
 
 
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Letter from the CEOs

 
Dear investor in ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.:
 
We wanted to take this time to summarize Fund Fourteen’s current portfolio and let you know what activity took place during the third quarter ended September 30, 2012.  As you may know, Fund Fourteen was in its operating period during the quarter.  During our operating period, we will make direct investments in domestic and global companies. These investments will be structured as debt and debt-like financings (such as leases) that are collateralized by business-essential equipment and corporate infrastructure.
 
Fund Fourteen is pleased to report that it made approximately $17 million in investments during the third quarter ended September 30, 2012.  For example, Fund Fourteen made a $12,410,000 term loan to Superior Tube Company, Inc. and its affiliate that is secured by manufacturing equipment consisting of tube mills, reducers, finishing machines and heat treatment furnaces.
 
We believe that there will continue to be many opportunities for us to deploy our equity in well structured deals collateralized by business-essential equipment and corporate infrastructure.
 
A more detailed analysis of Fund Fourteen’s investments, which we encourage you to read, is contained in our Form 10-Q.  Our Form 10-Q and our other quarterly, annual and current reports are available in the Investor Relations section of our website, www.iconinvestments.com.
 
As always, thank you for entrusting ICON with your investment assets.
 

 
Sincerely,
 
   
Michael A. Reisner
Co-President and Co-Chief Executive Officer
Mark Gatto
Co-President and Co-Chief Executive Officer

 
 
1
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 

Introduction to Portfolio Overview

We are pleased to present ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.’s (the “Fund”) Portfolio Overview for the third quarter ended September 30, 2012.  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 14, 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 $257,646,987 commencing with our initial offering on May 18, 2009 through the closing of our offering on May 18, 2011.  During our operating period, we will invest our offering proceeds and cash generated from operations 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.
 
New Investments

The Fund made the following new investments:
   
 
Frontier Oilfield Services, Inc.
Investment Date:
7/23/2012
Collateral:
Saltwater disposal wells and related equipment valued at approximately $38,925,000.
Structure:
Loan
  
Expiration Date:
02/01/2018
  
Facility Amount:
$5,000,000
  
Fund Participation:
$2,000,000
  
         
         
 
Revstone Transportation, LLC
Investment Date:
7/30/2012
Collateral:
Automotive manufacturing equipment valued at approximately $69,282,000.
Structure:
Loan
  
Expiration Date:
03/01/2017
  
Facility Amount:
$42,258,000*
  
Fund Participation:
$1,388,000*
  
         
         
 
Superior Tube Company, Inc.
Investment Date:
9/10/2012
Collateral:
Equipment and related inventory used in oil field services business valued at approximately $32,387,000.
Structure:
Loan
  
Expiration Date:
10/01/2017
  
Facility Amount:
$17,000,000
  
Fund Participation:
$9,928,000
 
  

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
 
New Investments (Continued)
 
 
 
NTS, Inc.
Investment Date:
9/27/2012
Collateral:
Telecommunications equipment valued at $29,400,000.
Structure:
Loan
  
Expiration Date:
07/01/2017
  
Facility Amount:
$14,100,000
  
Fund Participation:
$1,565,000*
  
         
 
 
SAExploration Holdings, Inc.
Investment Date:
11/28/2012
Collateral:
Seismic imaging equipment  valued at $33,500,000.
Structure:
Loan
  
Expiration Date:
11/28/2016
  
Facility Amount:
$13,500,000
  
Fund Participation:
$4,050,000
  
         
 
 
Platinum Energy Solutions, Inc.
Investment Date:
12/17/2012
Collateral:
Oil well fracking, cleaning and servicing equipment valued at $69,000,000.
Structure:
Loan
  
Expiration Date:
01/01/2017
  
Facility Amount:
$15,000,000
  
Fund Participation:
$8,700,000
  
         
         
 
Höegh Autoliners Shipping AS
Investment Date:
12/20/2012
Collateral:
A car carrier vessel  valued at $82,000,000.
Structure:
Lease
  
Expiration Date:
12/21/2020
  
Purchase Price:
$82,000,000
  
Fund Participation:
$4,256,000*
  
         
* Approximate amount

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
 
Recent Dispositions

The Fund disposed of the following investments:
   
 
 Revstone Transportation, LLC
Structure:
Loan
Collateral:
Automotive manufacturing equipment.
Disposition Date:
11/16/2012
  
Equity Invested:
$17,857,000*
  
Total Proceeds Received:
$21,314,000*
  
Note: Following the Fund’s additional investment on July 30, 2012, Revstone prepaid the loan subject to a 5% prepayment fee.
 
 
Global Crossing Telecommunications, Inc.
Structure:
Lease
Collateral:
Telecommunications equipment.
Disposition Date:
09/30/2012
  
Equity Invested:
$5,323,000*
  
Total Proceeds Received:
$6,758,000*
  
   
   
 
Quattro Plant Limited
Structure:
Loan
Collateral:
Rail support construction equipment.
Disposition Date:
11/14/2012
  
Equity Invested:
$4,258,000*
  
Total Proceeds Received:
$6,140,000*
  
         
 
Coach Am Group Holdings Corp.
Structure:
Lease
Collateral:
Motor coach buses.
Disposition Date:
10/19/2012
  
Equity Invested:
$821,000*
  
Total Proceeds Received:
$997,000*
  
 
 
Kanza Construction, Inc.
Structure:
Loan
Collateral:
Trucks, trailers, cranes, crawlers and excavators used in railroad services business.
Disposition Dates:
Various and continuing
Equity Invested:
$7,500,000
Total Proceeds Received:
$3,795,000**
 
* Approximate amount
** Kanza’s unexpected financial hardship resulted in its failure to meet certain payment obligations. As a result, Kanza has been repaying the principal balance on the term loan.

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 

Portfolio Overview

In addition to certain investments described in the New Investments section, as of September 30, 2012, our portfolio consisted primarily of the following investments:
   
 
Quattro Plant Limited
Structure:
Loan
Collateral:
Rail support construction equipment.
Expiration Date:
03/01/2013
  
         
   
 
ION Geophysical, Inc.
Structure:
Loan
Collateral:
Analog seismic system equipment.
Expiration Date:
08/01/2014
  
         
   
 
EMS Enterprise Holdings, LLC
Structure:
Loan
Collateral:
Metal cladding equipment consisting of furnaces, rolling mills, winders, slitters and production lines.
Expiration Date:
09/01/2014
  
   
 
Western Drilling Inc. and its affiliate
Structure:
Loan
Collateral:
Oil and drilling rigs.
Expiration Date:
08/01/2016
  
         
   
 
Palmali Holding Company Limited
Structure:
Loan
Collateral:
Two Aframax tanker vessels.
Expiration Date:
07/28/2016 09/14/2016
  
         
   
 
Revstone Transportation, LLC
Structure:
Loan
Collateral:
Automotive manufacturing equipment.
Expiration Date:
03/01/2017
  
         
   
 
NTS, Inc.
Structure:
Loan
Collateral:
Telecommunications equipment.
Expiration Date:
07/01/2017
  
         

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, 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.
Expiration Date:
01/16/2021
  
         
   
 
Kanza Construction, Inc.
Structure:
Loan
Collateral:
Trucks, trailers, cranes, crawlers and excavators used in railroad services business.
Expiration Date:
03/31/2017
  
         
 
 
VAS Aero Services, LLC
Structure:
Loan
Collateral:
Aircraft engines and related parts.
Expiration Date:
10/06/2014
  
         
   
 
Atlas Pipeline Mid-Continent, LLC
Structure:
Lease
Collateral:
Natural gas compressors.
Expiration Date:
08/31/2013
  
         
   
 
AET, Inc. Limited
Structure:
Lease
Collateral:
Two Aframax tankers and two Very Large Crude Carriers.
Expiration Date:
03/29/2014  03/29/2021
  
         
   
 
Exopack, LLC
Structure:
Lease
Collateral:
Film extrusion line and flexographic printing presses.
Expiration Date:
07/31/2014 09/30/2014
  
         
   
 
Coach Am Group Holdings Corp.
Structure:
Lease
Collateral:
Motor coach buses.
Expiration Date:
05/31/2015
  
         

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.

 
Portfolio Overview (Continued)

   
 
Geden Holdings Limited
Structure:
Lease
Collateral:
Crude oil tanker.
Expiration Date:
06/21/2016
  
         
   
 
Geden Holdings Limited
Structure:
Lease
Collateral:
Two supramax bulk carrier vessels.
Expiration Date:
09/30/2017
  
         
   
 
Ezra Holdings Limited
Structure:
Lease
Collateral:
Offshore support vessel.
Expiration Date:
06/03/2021
  
         
 
 
Global Crossing Telecommunications, Inc.
Structure:
Lease
Collateral:
Telecommunications equipment.
Expiration Date:
Various Dates through 06/30/2014
  

Revolving Line of Credit

On May 10, 2011, the Fund entered into a loan agreement with California Bank & Trust (“CB&T”) for a revolving line of credit of up to $15,000,000 (the “Facility”), which is secured by all of the Fund’s 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, on the present value of the future receivables under certain loans and lease agreements in which the Fund has a beneficial interest.

The Facility expires on March 31, 2013 and the Fund may request a one year extension to the revolving line of credit within 390 days of the then-current expiration date, but CB&T has no obligation to extend. The interest rate for general advances under the Facility is CB&T’s prime rate and the interest rate on up to five separate non-prime rate advances that are permitted to be made under the Facility is the 90-day rate at which U.S. dollar deposits can be acquired by CB&T in the London Interbank Eurocurrency Market plus 2.5% per year, provided that all interest rates on advances under the Facility are subject to an interest rate floor of 4.0% per year. In addition, the Fund is obligated to pay an annualized commitment fee of 0.50% on unused commitments under the Facility.  At September 30, 2012, there were no obligations outstanding under the Facility.
 
 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
 
Performance Analysis

Capital Invested As of September 30, 2012
$244,197,728
Leverage Ratio
1.12:1*
% of Receivables Collected in the Quarter Ended September 30, 2012
100%**
*    Leverage ratio is defined as total liabilities divided by total equity.
** Collections as of 10/31/2012. Excluded are amounts owed in connection with the loan to Kanza, which you can read about in further detail above.

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 revolver, 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 Flow Statement   Business Operations
Net cash flow generated by our investments, net of fees and expenses (CABO)
    
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).

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, 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 to the extent of equity raised and cash on hand at the beginning of 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, 2012 to September 30, 2012
  
Cash Balance at January 1, 2012
   $ 48,783,509        
Cash Balance at September 30, 2012
   $ 11,797,711        
Net Change in Cash
           $ (36,985,798 )
Add Back:
                
Distributions Paid to Partners from January 1, 2012 through September 30, 2012
           $ 15,686,708  
Investments made during the Period
                
Investment in Notes Receivable
   $ 50,575,955          
Investment in Joint Ventures
     117,500          
Investment by Noncontrolling Interests, net
     (137,500 )        
            $ 50,555,955  
Deduct:
                
Net Equity raised during the Period
           $ (4,486 )(1)
Debt Proceeds used specifically for Investments and activity related to the Facility
           $ -  
                 
Cash Available from Business Operations (CABO)
           $ 29,261,351 (2)

(1)  This amount is the net amount of (a) Sale of Limited Partnership Interests, (b) Sales and Offering Expenses Paid, (c) Deferred Charges and (d) Repurchase of Limited Partnership Interests, all directly from the GAAP Cash Flow statement.  This amount is deducted as it is not considered a source for distributions.
(2)  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 ICON Securities, LLC (“ICON Securities”), a wholly-owned subsidiary of our Investment Manager, whereby we pay certain fees and reimbursements to these parties.  ICON Securities is entitled to receive a 3% underwriting fee from the gross proceeds from sales of our limited partnership interests, of which up to 1% may be 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 were capped at the lesser of 1.44% of
 
 
 
 
9
 

 
Transactions with Related Parties (continued)

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 or paid 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. For a more detailed analysis of the fees payable to our Investment Manager, please see the Fund’s prospectus.  In connection with the investments described in the new investments section, we paid our Investment Manager aggregate acquisition fees in the amount of approximately $2,388,000.

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, cash distributions and liquidation proceeds.  We paid distributions to our General Partner in the amount of $52,289 and $156,867 for the three and nine months ended September 30, 2012, respectively.  Additionally, our General Partner’s interest in our net income was $42,136 and $79,973 for the three and nine months ended September 30, 2012, respectively.

Fees and other expenses paid or accrued by us to our General Partner or its affiliates were as follows:

           
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
 Entity
  
 Capacity
  
 Description
  
2012
    
2011
    
2012
    
2011
  
 ICON Capital, LLC
  
Investment Manager
  
Organizational and offering expense reimbursements(1)
   $ -     $ -     $ -     $ 273,438  
 ICON Securities, LLC
  
Dealer-Manager
  
Underwriting fees(2)
     -       -       -       1,877,234  
 ICON Capital, LLC
  
Investment Manager
  
 Acquisition fees(3)
     979,806       1,069,063       2,543,402       8,610,359  
 ICON Capital, LLC
  
Investment Manager
  
 Management fees (4)
     594,416       562,172       2,053,922       1,378,900  
 ICON Capital, LLC
  
Investment Manager
  
Administrative expense reimbursements(4)
     598,621       1,083,290       2,924,407       4,438,637  
            $ 2,172,843     $ 2,714,525     $ 7,521,731     $ 16,578,568  
(1) Amount capitalized and amortized to partners' equity.
(2) Amount charged directly to partners' equity.
(3) Amount capitalized and amortized to operations over the estimated service period.
(4) Amount charged directly to operations.

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
 
Transactions with Related Parties (continued)

At September 30, 2012 and December 31, 2011, we had a net payable of $130,384 and $398,466, respectively, due to our General Partner and its affiliates that primarily consisted of administrative expense reimbursements.

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.

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 

Financial Statements                                                                                                            (A Delaware Limited Partnership)
Consolidated Balance Sheets

             
   
September 30,
2012
(unaudited)
    
December 31,
2011
  
             
Assets
            
Cash and cash equivalents
   $ 11,797,711     $ 48,783,509  
Restricted cash
     6,442,556       2,500,000  
Net investment in finance leases
     139,676,662       145,974,532  
Leased equipment at cost (less accumulated depreciation  of $27,034,039 and $18,302,163, respectively) 
     166,922,606       181,110,196  
Net investment in notes receivable
     102,235,780       70,406,783  
Note receivable from joint venture
     2,426,535       2,800,000  
Investments in joint ventures
     786,355       1,029,336  
Other assets
     6,823,184       6,044,435  
Total assets
   $ 437,111,389     $ 458,648,791  
                 
Liabilities and Equity
                
                 
Liabilities:
                
Non-recourse long-term debt
   $ 205,020,283     $ 221,045,626  
Derivative financial instruments
     12,283,230       10,663,428  
Deferred revenue
     3,238,033       3,245,739  
Due to General Partner and affiliates, net
     130,384       398,466  
Accrued expenses and other liabilities
     10,285,865       9,418,900  
Total liabilities
     230,957,795       244,772,159  
                 
Commitments and contingencies
                
                 
Equity:
                
 Partners’ equity:
                
 Limited partners
     194,875,780       202,492,816  
 General Partner
     (354,838 )     (277,944 )
Total partners’ equity
     194,520,942       202,214,872  
                 
 Noncontrolling interests
     11,632,652       11,661,760  
Total equity
     206,153,594       213,876,632  
Total liabilities and equity
   $ 437,111,389     $ 458,648,791  

 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.

 
Financial Statements                                                                                                            (A Delaware Limited Partnership)
Consolidated Statements of Operations
(unaudited)
 
   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2012
    
2011
    
2012
    
2011
  
Revenue:
                        
Finance income
   $ 6,683,054     $ 5,938,620     $ 20,121,447     $ 13,582,351  
Rental income
     7,916,683       7,847,405       23,740,083       17,542,059  
Income (loss) from investments in joint ventures
     79,023       1,073,263       (148,709 )     1,374,091  
Other income (loss)
     43,060       (75,785 )     108,791       184,171  
Total revenue
     14,721,820       14,783,503       43,821,612       32,682,672  
                                 
Expenses:
                                
Management fees
     594,416       562,172       2,053,922       1,378,900  
Administrative expense reimbursements
     598,621       1,083,290       2,924,407       4,438,637  
General and administrative
     426,994       506,504       1,554,206       1,444,163  
Credit loss
     -       -       2,636,066       -  
Depreciation
     4,374,352       4,336,287       13,123,060       9,811,251  
Interest
     2,834,897       3,058,409       8,610,627       6,162,274  
Loss on derivative financial instruments
     1,487,091       6,937,325       4,409,838       11,748,444  
Total expenses
     10,316,371       16,483,987       35,312,126       34,983,669  
Net income (loss)
     4,405,449       (1,700,484 )     8,509,486       (2,300,997 )
                                 
Less: net income (loss) attributable to noncontrolling interests
     191,863       (1,067,527 )     512,222       (1,885,432 )
Net income (loss) attributable to Fund Fourteen
   $ 4,213,586     $ (632,957 )   $ 7,997,264     $ (415,565 )
                                 
Net income (loss) attributable to Fund Fourteen allocable to:
                                
Limited partners
   $ 4,171,450     $ (626,627 )   $ 7,917,291     $ (411,409 )
General Partner
     42,136       (6,330 )     79,973       (4,156 )
                                 
    $ 4,213,586     $ (632,957 )   $ 7,997,264     $ (415,565 )
                                 
Weighted average number of limited partnership interests outstanding
     258,827       258,832       258,830       238,321  
                                 
Net income (loss) attributable to Fund Fourteen per weighted average limited partnership interest outstanding
   $ 16.12     $ (2.42 )   $ 30.59     $ (1.73 )


 
 
13
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 

Financial Statements                                                                                                            (A Delaware Limited Partnership)
Consolidated Statements of Changes in Equity

   
Partners' Equity
              
   
Limited
Partnership
Interests
    
 
Limited Partners
    
 
General Partner
    
Total Partners' Equity
    
Noncontrolling
Interests
    
Total Equity
  
 
 
Balance, December 31, 2011
     258,832     $ 202,492,816     $ (277,944 )   $ 202,214,872     $ 11,661,760     $ 213,876,632  
                                                 
Net income
     -       5,216,010       52,687       5,268,697       423,597       5,692,294  
Cash distributions
     -       (5,176,637 )     (52,289 )     (5,228,926 )     (390,703 )     (5,619,629 )
                                                 
Balance, March 31, 2012 (unaudited)
     258,832       202,532,189       (277,546 )     202,254,643       11,694,654       213,949,297  
                                                 
Net loss
     -       (1,470,169 )     (14,850 )     (1,485,019 )     (103,238 )     (1,588,257 )
Repurchase of limited partnership interests
     (5 )     (4,486 )     -       (4,486 )     -       (4,486 )
Investment by noncontrolling interest
     -       -       -       -       137,500       137,500  
Cash distributions
     -       (5,176,637 )     (52,289 )     (5,228,926 )     (96,454 )     (5,325,380 )
                                                 
Balance, June 30, 2012 (unaudited)
     258,827       195,880,897       (344,685 )     195,536,212       11,632,462       207,168,674  
                                                 
Net income
     -       4,171,450       42,136       4,213,586       191,863       4,405,449  
Cash distributions
     -       (5,176,567 )     (52,289 )     (5,228,856 )     (191,673 )     (5,420,529 )
                                                 
Balance, September 30, 2012 (unaudited)
     258,827     $ 194,875,780     $ (354,838 )   $ 194,520,942     $ 11,632,652     $ 206,153,594  

 
 
14
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.

 
Financial Statements                                                                                                            (A Delaware Limited Partnership)
Consolidated Statements of Cash Flows
(unaudited)

   
Nine Months Ended
September 30,
  
   
2012
    
2011
  
Cash flows from operating activities:
            
Net income (loss)
   $ 8,509,486     $ (2,300,997 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
                
Finance income, net of costs and fees
     (602,414 )     623,634  
Loss (income) from investments in joint ventures
     148,709       (1,374,091 )
Depreciation
     13,123,060       9,811,251  
Credit loss
     2,636,066       -  
Interest expense from amortization of debt financing costs
     743,362       463,409  
Interest expense, other
     287,623       137,733  
Other income
     (51,605 )     (31,016 )
Loss on derivative financial instruments
     1,619,802       10,836,351  
Changes in operating assets and liabilities:
                
Restricted cash
     (3,942,556 )     (1,875,000 )
Other assets, net
     (1,511,948 )     (3,610,784 )
Accrued expenses and other liabilities
     579,342       88,251  
Deferred revenue
     (7,706 )     2,196,566  
Due to General Partner and affiliates
     (268,082 )     115,830  
Distributions from joint ventures
     -       1,374,091  
Net cash provided by operating activities
     21,263,139       16,455,228  
                 
Cash flows from investing activities:
                
Proceeds from sale of equipment
     1,064,530       -  
Purchase of equipment
     -       (79,564,939 )
Principal repayment on finance leases
     6,136,397       4,809,221  
Investments in joint ventures
     (117,500 )     -  
Distributions received from joint ventures in excess of profits
     211,772       3,817,746  
Investment in notes receivable
     (50,575,955 )     (9,512,325 )
Principal repayment on notes receivable
     17,289,686       4,778,195  
Net cash used in investing activities
     (25,991,070 )     (75,672,102 )
                 
Cash flows from financing activities:
                
Proceeds from non-recourse long-term debt
     -       22,000,000  
Repayment of non-recourse long-term debt
     (16,025,343 )     (10,453,859 )
Debt financing costs
     -       (4,420,000 )
Sale of limited partnership interests
     -       65,673,533  
Sales and offering expenses paid
     -       (6,166,877 )
Deferred charges
     -       (273,438 )
Investment by noncontrolling interest
     137,500       14,027,711  
Distributions to noncontrolling interests
     (678,830 )     (5,855,813 )
Cash distributions to partners
     (15,686,708 )     (13,950,084 )
Repurchase of limited partnership interests
     (4,486 )     (53,498 )
Net cash (used in) provided by financing activities
     (32,257,867 )     60,527,675  
Net (decrease) increase in cash and cash equivalents
     (36,985,798 )     1,310,801  
Cash and cash equivalents, beginning of period
     48,783,509       64,317,006  
Cash and cash equivalents, end of period
   $ 11,797,711     $ 65,627,807  

 
 
15
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.


Financial Statements                                                                                                            (A Delaware Limited Partnership)
Consolidated Statements of Cash Flows
(unaudited)

   
Nine Months Ended
September 30,
  
   
2012
    
2011
  
Supplemental disclosure of cash flow information:
            
             
Cash paid for interest
   $ 9,534,193     $ 6,463,324  
                 
Supplemental disclosure of non-cash investing and financing activities:
                
Organizational and offering expenses charged to equity
   $ -     $ 1,124,718  
Equipment purchased with non-recourse long-term debt paid directly by lender
   $ -     $ 172,000,000  
Exchange of noncontrolling interest in investments in joint ventures for notes receivable
   $ -     $ 10,450,296  
Equipment purchased with subordinated financing provided by seller
   $ -     $ 9,000,000  

 
 
16
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.

 
Forward Looking Information
 
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 Required Disclosure

To fulfill our promises to you we are required to make the following disclosures when applicable:
 
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 15, and November 15 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.
 
 
 
17
 

ICON Equipment & Corporate Infrastructure Fund Fourteen, L.P. Reports