Attached files
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8-K - ICON INCOME FUND TEN LLC | body.htm |
Exhibit 99.1
ICON Income Fund Ten, LLC
Portfolio Overview | ||
Third Quarter 2013 |
Table of Contents | |||
Introduction to Portfolio Overview
|
1 | ||
Dispositions Following the Quarter | 1 | ||
Portfolio Overview
|
2 | ||
Transactions with Related Parties | 2 | ||
Financial Statements | 4 | ||
Forward Looking Statements | 8 | ||
Additional Information | 8 |
ICON Income Fund Ten, LLC
As of February 21, 2014
Introduction to Portfolio Overview
We are pleased to present ICON Income Fund Ten, LLC’s (the “Fund”) Portfolio Overview for the quarter ended September 30, 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 our 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.
Dispositions Following the Quarter
The Fund disposed of the following investments after the quarter ended September 30, 2013:
AET, Inc. Limited | |||
Structure:
|
Lease | Collateral: | Two Aframax tankers. |
Disposition Date: | 11/7/2013 | ||
The Fund's Investment: | $9,320,000 | ||
Total Proceeds Received: | $4,453,000 |
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ICON Income Fund Ten, LLC
Portfolio Overview
As of September 30, 2013, our portfolio consisted of the following investments:
AET, Inc. Limited | |||
Structure:
|
Lease | Collateral: | Two Aframax tankers. |
Expiration Date: | 11/14/2013 |
ZIM Israel Navigation Co. Ltd. | |||
Structure: | Lease | Collateral: | Two container vessels. |
Expiration Dates: | 3/31/2016 | ||
3/31/2017 |
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.
During the three months ended September 30, 2013, our Manager suspended the collection of management fees and administrative expense reimbursements of approximately $230,000 and $56,000, respectively. During the nine months ended September 30, 2013, our Manager suspended the collection of management fees and administrative expense reimbursements of approximately $683,000 and $186,000, respectively. During the three and nine months ended September 30, 2012, the Manager suspended the collection of management fees and administrative expense reimbursements of approximately $108,000 and $90,000, respectively.
2
ICON Income Fund Ten, LLC
Transactions with Related Parties (continued)
Our Manager also has a 1% interest in our profits, losses, cash distributions and liquidation proceeds. We paid distributions to our Manager of $32,827 and $83,585 for the three and nine months ended September 30, 2013, respectively. We paid distributions to our Manager of $10,606 and $74,748 for the three and nine months ended September 30, 2012, respectively. Additionally, our Manager’s interest in the net income attributable to the Fund was $12,187 and $31,513 for the three and nine months ended September 30, 2013, respectively. Our Manager’s interest in the net income attributable to the Fund was $11,819 and $27,377 for the three and nine months ended September 30, 2012, respectively.
Fees and other expenses paid or accrued by us to our Manager or its affiliates were as follows:
Nine Months Ended September 30, | ||||||||||
Entity | Capacity | Description | 2013 | 2012 | ||||||
ICON Capital, LLC | Manager | Management fees (1) | $ | - | $ | 224,216 | ||||
ICON Capital, LLC | Manager | Administrative expense reinbursements (1) | - | 273,488 | ||||||
$ | - | $ | 497,704 |
(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.
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ICON Income Fund Ten, LLC
(A Delaware Limited Liability Company)Financial Statements
Consolidated Balance Sheets
September 30,
|
||||||||
2013 | December 31, | |||||||
(unaudited)
|
2012 | |||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
3,444,725
|
$
|
1,805,049
|
||||
Current portion of net investment in finance leases
|
18,716,346
|
10,304,383
|
||||||
Other current assets
|
4,131
|
92,754
|
||||||
Total current assets
|
22,165,202
|
12,202,186
|
||||||
Non-current assets:
|
||||||||
Net investment in finance leases, less current portion
|
15,449,383
|
29,726,814
|
||||||
Investment in joint ventures
|
-
|
710,564
|
||||||
Other non-current assets
|
24,800
|
24,800
|
||||||
Total non-current assets
|
15,474,183
|
30,462,178
|
||||||
Total assets
|
$
|
37,639,385
|
$
|
42,664,364
|
||||
Liabilities and Equity
|
||||||||
Current liabilities:
|
||||||||
Accrued expenses
|
$
|
236,370
|
$
|
45,885
|
||||
Indemnification liability
|
371,617
|
372,143
|
||||||
Other current liabilities
|
-
|
13,481
|
||||||
Total liabilities
|
607,987
|
431,509
|
||||||
Commitments and contingencies
|
||||||||
Equity:
|
||||||||
Members’ equity:
|
||||||||
Additional members
|
37,983,600
|
43,138,938
|
||||||
Manager
|
(928,757)
|
(876,685)
|
||||||
Accumulated other comprehensive loss
|
(5,352)
|
(57,405)
|
||||||
Total members’ equity
|
37,049,491
|
42,204,848
|
||||||
Noncontrolling interests
|
(18,093)
|
28,007
|
||||||
Total equity
|
37,031,398
|
42,232,855
|
||||||
Total liabilities and equity
|
$
|
37,639,385
|
$
|
42,664,364
|
4
ICON Income Fund Ten, LLC
(A Delaware Limited Liability Company)Financial Statements
Consolidated Statements of Comprehensive Income (unaudited)
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue and other income:
|
|||||||||||||
Rental income
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
4,944
|
|||||
Finance income
|
1,445,515
|
1,726,497
|
4,584,971
|
5,101,790
|
|||||||||
Loss from investment in joint ventures
|
(150,702)
|
(343,189)
|
(755,478)
|
(1,098,877)
|
|||||||||
Interest and other income
|
(19,902)
|
(13,275)
|
337
|
10,867
|
|||||||||
Total revenue and other income
|
1,274,911
|
1,370,033
|
3,829,830
|
4,018,724
|
|||||||||
Expenses:
|
|||||||||||||
Management fees
|
-
|
-
|
-
|
224,216
|
|||||||||
Administrative expense reimbursements
|
-
|
-
|
-
|
273,488
|
|||||||||
General and administrative
|
56,203
|
184,840
|
715,818
|
779,807
|
|||||||||
Depreciation and amortization
|
-
|
-
|
-
|
590
|
|||||||||
Total expenses
|
56,203
|
184,840
|
715,818
|
1,278,101
|
|||||||||
Net income
|
1,218,708
|
1,185,193
|
3,114,012
|
2,740,623
|
|||||||||
Less: net income (loss) attributable to noncontrolling interests
|
-
|
3,249
|
(37,283)
|
2,759
|
|||||||||
Net income attributable to Fund Ten
|
1,218,708
|
1,181,944
|
3,151,295
|
2,737,864
|
|||||||||
Other comprehensive income:
|
|||||||||||||
Change in fair value of derivative financial instruments
|
13,218
|
20,845
|
52,053
|
67,575
|
|||||||||
Currency translation adjustments
|
-
|
-
|
-
|
(1,151)
|
|||||||||
Total other comprehensive income
|
13,218
|
20,845
|
52,053
|
66,424
|
|||||||||
Comprehensive income
|
1,231,926
|
1,206,038
|
3,166,065
|
2,807,047
|
|||||||||
Less: comprehensive income (loss) attributable to
|
|||||||||||||
noncontrolling interests
|
-
|
3,249
|
(37,283)
|
2,759
|
|||||||||
Comprehensive income attributable to Fund Ten
|
$
|
1,231,926
|
$
|
1,202,789
|
$
|
3,203,348
|
$
|
2,804,288
|
|||||
Net income attributable to Fund Ten allocable to:
|
|||||||||||||
Additional members
|
$
|
1,206,521
|
$
|
1,170,125
|
$
|
3,119,782
|
$
|
2,710,487
|
|||||
Manager
|
12,187
|
11,819
|
31,513
|
27,377
|
|||||||||
$
|
1,218,708
|
$
|
1,181,944
|
$
|
3,151,295
|
$
|
2,737,864
|
||||||
Weighted average number of additional shares of limited
|
|||||||||||||
liability company interests outstanding
|
148,211
|
148,211
|
148,211
|
148,211
|
|||||||||
Net income attributable to Fund Ten per weighted average
|
|||||||||||||
additional share of limited liability company interests
|
|||||||||||||
outstanding
|
$
|
8.14
|
$
|
7.89
|
$
|
21.05
|
$
|
18.29
|
5
ICON Income Fund Ten, LLC
(A Delaware Limited Liability Company)Financial Statements
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
|
|||||||||||||
Net income (loss)
|
-
|
917,214
|
9,265
|
-
|
926,479
|
(37,017)
|
889,462
|
|||||||||||||
Change in fair value of derivative financial instruments
|
-
|
-
|
-
|
17,171
|
17,171
|
-
|
17,171
|
|||||||||||||
Cash distributions
|
-
|
(2,525,044)
|
(25,505)
|
-
|
(2,550,549)
|
-
|
(2,550,549)
|
|||||||||||||
Balance, June 30, 2013 (unaudited)
|
148,211
|
40,027,111
|
(908,117)
|
(18,570)
|
39,100,424
|
(9,276)
|
39,091,148
|
|||||||||||||
Net income
|
-
|
1,206,521
|
12,187
|
-
|
1,218,708
|
-
|
1,218,708
|
|||||||||||||
Change in fair value of derivative financial instruments
|
-
|
-
|
-
|
13,218
|
13,218
|
-
|
13,218
|
|||||||||||||
Cash distributions
|
-
|
(3,250,032)
|
(32,827)
|
-
|
(3,282,859)
|
(8,817)
|
(3,291,676)
|
|||||||||||||
Balance, September 30, 2013 (unaudited)
|
148,211
|
$
|
37,983,600
|
$
|
(928,757)
|
$
|
(5,352)
|
$
|
37,049,491
|
$
|
(18,093)
|
$
|
37,031,398
|
6
ICON Income Fund Ten, LLC
(A Delaware Limited Liability Company)Financial Statements
Consolidated Statements of Cash Flows (unaudited)
Nine Months Ended September 30,
|
|||||||||||
2013
|
2012
|
||||||||||
Cash flows from operating activities:
|
|||||||||||
Net income
|
$
|
3,114,012
|
$
|
2,740,623
|
|||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||
Finance income
|
(4,584,971)
|
(5,101,790)
|
|||||||||
Loss from investment in joint ventures
|
755,478
|
1,098,877
|
|||||||||
Depreciation and amortization
|
-
|
590
|
|||||||||
Interest and other income
|
(526)
|
-
|
|||||||||
Changes in operating assets and liabilities:
|
|||||||||||
Collection of finance leases
|
10,450,439
|
3,250,188
|
|||||||||
Other assets, net
|
88,623
|
20,376
|
|||||||||
Due to Manager and affiliates, net
|
-
|
(116,479)
|
|||||||||
Accrued expenses
|
190,485
|
(87,577)
|
|||||||||
Other current liabilities
|
(13,481)
|
12,187
|
|||||||||
Net cash provided by operating activities
|
10,000,059
|
1,816,995
|
|||||||||
Cash flows from investing activities:
|
|||||||||||
Investment in joint ventures
|
-
|
(55,532)
|
|||||||||
Distribution from joint venture
|
7,139
|
-
|
|||||||||
Principal received on notes receivable
|
-
|
446,499
|
|||||||||
Net cash provided by investing activities
|
7,139
|
390,967
|
|||||||||
Cash flows from financing activities:
|
|||||||||||
Distributions to noncontrolling interests
|
(8,817)
|
-
|
|||||||||
Cash distributions to members
|
(8,358,705)
|
(7,474,818)
|
|||||||||
Net cash used in financing activities
|
(8,367,522)
|
(7,474,818)
|
|||||||||
Net increase (decrease) in cash and cash equivalents
|
1,639,676
|
(5,266,856)
|
|||||||||
Cash and cash equivalents, beginning of period
|
1,805,049
|
6,171,596
|
|||||||||
Cash and cash equivalents, end of period
|
$
|
3,444,725
|
$
|
904,740
|
7
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
“Total Proceeds Received,” as referenced in the sections entitled Dispositions Following the Quarter, does not include proceeds received to satisfy indebtedness incurred in connection with the investment, if any, or the payment of any fees or expenses with respect to such investment.
A detailed financial report on SEC Form 10-Q or 10-K (whichever is applicable) is available to you. It is typically filed either 45 or 90 days after the end of a quarter or year, respectively. Usually this means a filing will occur on or around March 31, May 15, August 14, and November 14 of each year. It contains financial statements and detailed sources and uses of cash plus explanatory notes. You are always entitled to these reports. Please access them by:
·
|
Visiting www.iconinvestments.com, or
|
·
|
Visiting www.sec.gov, or
|
·
|
Writing us at: Angie Seenauth c/o ICON Investments, 3 Park Avenue, 36th Floor, New York, NY 10016
|
We do not distribute these reports to you directly in order to keep our expenses down as the cost of mailing this report to all investors is significant. Nevertheless, the reports are immediately available upon your request.
8