ICON INCOME FUND TEN LLC - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - ICON INCOME FUND TEN LLC	body.htm

ICON Income Fund Ten, LLC

First Quarter Portfolio Overview

2013

ICON Income Fund Ten, LLC

	Table of Contents

	Introduction to Portfolio Overview	1

	Portfolio Overview	1

	Transactions with Related Parties	2

	Financial Statements	3

	Forward Looking Statements	7

	Additional Information	7

ICON Income Fund Ten, LLC

As of July 25, 2013

Introduction to Portfolio Overview

We are pleased to present ICON Income Fund Ten, LLC’s (the “Fund”) Portfolio Overview for the quarter ended March 31, 2013. References to “we,” “us,” and “our” are references to the Fund, and references to the “Manager” are references to the manager of the Fund, ICON Capital, LLC.

The Fund raised approximately $150,000,000 commencing with our initial offering on June 2, 2003 through the closing of the offering on April 5, 2005. In May 2010, we entered our liquidation period, which is expected to continue for several more years. During the liquidation period, we began the gradual, orderly termination of the Fund’s operations and affairs, and liquidation or disposition of its equipment, leases and financing transactions. Additionally, during the liquidation period, you may receive distributions that are generated from net rental income or equipment sales when realized. In some months, the distribution may be larger, in some months the distribution may be smaller, and in some months there may not be any distribution.

Portfolio Overview

As of March 31, 2013, our portfolio consisted of the following investments:


AET, Inc. Limited
Structure:	Lease	Collateral:	Two Aframax product tankers.
Expiration Date:	11/14/2013



ZIM Israel Navigation Co. Ltd.
Structure:	Lease	Collateral:	Two container vessels.
Expiration Date:	03/31/2016 03/31/2017

ICON Income Fund Ten, LLC

Transactions with Related Parties

Our Manager performs certain services relating to the management of our equipment leasing and other financing activities. Such services include, but are not limited to, the collection of lease payments from the lessees of the equipment or loan payments from borrowers, re-leasing services in connection with equipment which is off-lease, inspections of the equipment, liaising with and general supervision of lessees and borrowers to ensure that the equipment is being properly operated and maintained, monitoring performance by the lessees and borrowers of their obligations under the leases and loans and the payment of operating expenses.

Administrative expense reimbursements are costs incurred by our Manager or its affiliates that are necessary to our operations. These costs include our Manager’s and its affiliates’ legal, accounting, investor relations, and operations personnel costs, as well as professional fees and other costs that are charged to us based upon the percentage of time such personnel dedicate to us. Excluded are salaries and related costs, office rent, travel expenses, and other administrative costs incurred by individuals with a controlling interest in our Manager.

During the three months ended March 31, 2013, our Manager suspended the collection of management fees and administrative expense reimbursements of approximately $226,000 and $69,000, respectively.

Our Manager also has a 1% interest in our profits, losses, cash distributions and liquidation proceeds. We paid distributions to our Manager in the amount of $25,253 and $55,556 for the three months ended March 31, 2013 and 2012, respectively. Additionally, our Manager’s interest in our net income was $10,061 and $7,581 for the three months ended March 31, 2013 and 2012, respectively.

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

			Three Months Ended March 31,
Entity	Capacity	Description	2013		2012
ICON Capital, LLC	Manager	Management fees (1)	$	-	$	109,611
ICON Capital, LLC	Manager	Administrative expense reimbursements (1)		-		99,178
			$	-	$	208,789

(1) Amount charged directly to operations.

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.

ICON Income Fund Ten, LLC

Financial Statements (A Delaware Limited Liability Company)

Consolidated Balance Sheets

	March 31,				December 31,
	2013				2012
	(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	2,519,281			$	1,805,049
Current portion of net investment in finance leases			12,968,109				10,304,383
Other current assets			28,590				92,754
Total current assets			15,515,980				12,202,186
Non-current assets:
Net investment in finance leases, less current portion			25,227,169				29,726,814
Investment in joint ventures			360,550				710,564
Other non-current assets			24,800				24,800
Total non-current assets			25,612,519				30,462,178
Total assets		$	41,128,499			$	42,664,364

Liabilities and Equity

Current liabilities:
Accrued expenses		$	30,719			$	45,885
Indemnification liability			349,235				372,143
Other current liabilities			13,481				13,481
Total liabilities			393,435				431,509

Commitments and contingencies

Equity:
Members’ equity:
Additional members			41,634,941				43,138,938
Manager			(891,877	)			(876,685	)
Accumulated other comprehensive loss			(35,741	)			(57,405	)
Total members’ equity			40,707,323				42,204,848
Noncontrolling interests			27,741				28,007
Total equity			40,735,064				42,232,855
Total liabilities and equity		$	41,128,499			$	42,664,364

ICON Income Fund Ten, LLC

Financial Statements (A Delaware Limited Liability Company)

Consolidated Statements of Comprehensive Income (unaudited)

	Three Months Ended March 31,
	2013			2012
Revenue and other income:
Rental income	$	-		$	3,878
Finance income		1,609,281			1,674,892
Loss from investment in joint ventures		(371,678	)		(413,365	)
Interest and other income		20,715			14,079
Total revenue and other income		1,258,318			1,279,484
Expenses:
Management fees		-			109,611
Administrative expense reimbursements		-			99,178
General and administrative		252,476			312,463
Depreciation and amortization		-			590
Total expenses		252,476			521,842
Net income		1,005,842			757,642
Less: net loss attributable to noncontrolling interests		(266	)		(490	)
Net income attributable to Fund Ten		1,006,108			758,132

Other comprehensive income:
Change in fair value of derivative financial instruments		21,664			16,862
Currency translation adjustments		-			(1,151	)
Total other comprehensive income		21,664			15,711
Comprehensive income		1,027,506			773,353
Less: comprehensive loss attributable to noncontrolling interests		(266	)		(490	)
Comprehensive income attributable to Fund Ten	$	1,027,772		$	773,843

Net income attributable to Fund Ten allocable to:
Additional members	$	996,047		$	750,551
Manager		10,061			7,581
	$	1,006,108		$	758,132

Weighted average number of additional shares of limited liability company
interests outstanding		148,211			148,211
Net income attributable to Fund Ten per weighted average additional
share of limited liability company interests outstanding	$	6.72		$	5.06

ICON Income Fund Ten, LLC

Financial Statements (A Delaware Limited Liability Company)

Consolidated Statements of Changes in Equity

	Members' Equity
	Additional Shares of Limited Liability Company Interests		Additional Members				Manager				Accumulated Other Comprehensive (Loss) Income				Total Members' Equity				Noncontrolling Interests				Total Equity
Balance, December 31, 2012		148,211		$	43,138,938			$	(876,685	)		$	(57,405	)		$	42,204,848			$	28,007			$	42,232,855
Net income (loss)		-			996,047				10,061				-				1,006,108				(266	)			1,005,842
Change in fair value of derivative financial instruments		-			-				-				21,664				21,664				-				21,664
Cash distributions		-			(2,500,044	)			(25,253	)			-				(2,525,297	)			-				(2,525,297	)
Balance, March 31, 2013 (unaudited)		148,211		$	41,634,941			$	(891,877	)		$	(35,741	)		$	40,707,323			$	27,741			$	40,735,064

ICON Income Fund Ten, LLC

Financial Statements (A Delaware Limited Liability Company)

Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended March 31,
		2013			2012
Cash flows from operating activities:
Net income		$	1,005,842		$	757,642
Adjustments to reconcile net income to net cash provided by operating activities:
Finance income			(1,609,281	)		(1,674,892	)
Loss from investment in joint ventures			371,678			413,365
Depreciation and amortization			-			590
Interest and other income			(22,908	)		9,724
Changes in operating assets and liabilities:
Collection of finance leases			3,445,200			1,079,442
Other assets, net			64,164			22,684
Due to Manager and affiliates, net			-			(18,708	)
Accrued expenses			(15,166	)		(78,555	)
Other current liabilities			-			(2,205	)
Net cash provided by operating activities			3,239,529			509,087
Cash flows from investing activities:
Investment in joint ventures			-			(55,527	)
Principal received on notes receivable			-			95,251
Net cash provided by investing activities			-			39,724
Cash flows from financing activities:
Cash distributions to members			(2,525,297	)		(5,555,600	)
Net cash used in financing activities			(2,525,297	)		(5,555,600	)
Net increase (decrease) in cash and cash equivalents			714,232			(5,006,789	)
Cash and cash equivalents, beginning of period			1,805,049			6,171,596
Cash and cash equivalents, end of period		$	2,519,281		$	1,164,807

ICON Income Fund Ten, LLC

Forward Looking Statements

Certain statements within this document may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements are being made pursuant to the PSLRA, with the intention of obtaining the benefits of the “safe harbor” provisions of the PSLRA, and, other than as required by law, we assume no obligation to update or supplement such statements. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. You can identify these statements by the use of words such as “may,” “will,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “continue,” “further,” “plan,” “seek,” “intend,” “predict” or “project” and variations of these words or comparable words or phrases of similar meaning. These forward-looking statements reflect our current beliefs and expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties and other factors outside our control that may cause actual results to differ materially from those projected. We undertake no obligation to update publicly or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Additional Information

A detailed financial report on SEC Form 10-Q or 10-K (whichever is applicable) is available to you. It is typically filed either 45 or 90 days after the end of a quarter or year, respectively. Usually this means a filing will occur on or around March 31, May 15, August 14, and November 14 of each year. It contains financial statements and detailed sources and uses of cash plus explanatory notes. You are always entitled to these reports. Please access them by:

·	Visiting www.iconinvestments.com, or

·	Visiting www.sec.gov, or

·	Writing us at: Angie Seenauth c/o ICON Investments, 3 Park Avenue, 36th Floor, New York, NY 10016

We do not distribute these reports to you directly in order to keep our expenses down as the cost of mailing this report to all investors is significant. Nevertheless, the reports are immediately available upon your request.

ICON INCOME FUND TEN LLC - FORM 8-K - EX-99.1 - August 2, 2013

Attached files

ICON INCOME FUND TEN LLC Reports