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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2006
 OR
 o
    
    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 0-23158
 CRONOS GLOBAL INCOME FUND XIV, L.P.
  California
(State or other jurisdiction of
incorporation or organization)
    
    94-3163375
(I.R.S. Employer
Identification No.)
 One Front Street, Suite 925,
San Francisco, California
(Address of principal executive offices)
    
    94111(Zip Code)
 
 þ o
  o o þ
 o þ




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 Report on Form 10-Q for the Quarterly Period
Ended June 30, 2006
  
 TABLE OF CONTENTS
 PAGEPART I  FINANCIAL INFORMATION
    
    
    3Item 1. Financial Statements
    
    
    3Condensed Balance Sheets  June 30, 2006 and December 31, 2005 (unaudited)
    
    
    4Condensed Statements of Operations for the three and six months ended June 30, 2006 and 2005 (unaudited)
    
    
    5Condensed Statements of Cash Flows for the six months ended June 30, 2006 and 2005 (unaudited)
    
    
    6Notes to Condensed Financial Statements (unaudited)
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    18Item 4. Controls and Procedures
    
    
    18PART II  OTHER INFORMATION
    
    
    19Item 1. Legal Proceedings
    
    
    19Item 1A. Risk Factors
    
    
    19Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    19Item 3. Defaults Upon Senior Securities
    
    
    19Item 4. Submissions of Matters to a Vote of Securities Holders
    
    
    19Item 5. Other Information
    
    
    19Item 6. Exhibits
    
    
    19EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32
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PART I  FINANCIAL INFORMATION
 
 Financial Statements
   3




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 
 Condensed Balance Sheets
 (Unaudited)
 June 30,
    
    
    December 31,2006
    
    
    2005AssetsCurrent assets:Cash and cash equivalents, includes $1,462,996 at June 30, 2006 and
$1,634,572 at December 31, 2005 in interest-bearing accounts
    
    $
    1,477,996
    
    
    $
    1,649,572Net lease and other receivables due from Leasing Company
    
    
    323,571
    
    
    
    427,800Total current assets
    
    
    1,801,567
    
    
    
    2,077,372Container rental equipment, at cost
    
    
    21,827,512
    
    
    
    26,037,800Less accumulated depreciation
    
    
    (16,416,663
    )
    
    
    (18,846,642
    )Net container rental equipment
    
    
    5,410,849
    
    
    
    7,191,158Total assets
    
    $
    7,212,416
    
    
    $
    9,268,530Partners CapitalPartners capital (deficit):General partner
    
    $
    (376,121
    )
    
    $
    (470,255
    )Limited partners
    
    
    7,588,537
    
    
    
    9,738,785Total partners capital
    
    $
    7,212,416
    
    
    $
    9,268,530
  4




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 
 Condensed Statements of Operations
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Net lease revenue
    
    $
    415,188
    
    
    $
    664,791
    
    
    $
    894,001
    
    
    $
    1,336,623Other operating income (expenses):Depreciation
    
    
    (351,155
    )
    
    
    (483,496
    )
    
    
    (736,971
    )
    
    
    (996,122
    )Other general and administrative expenses
    
    
    (40,088
    )
    
    
    (34,398
    )
    
    
    (75,980
    )
    
    
    (64,325
    )Net gain (loss) on disposal of equipment
    
    
    71,667
    
    
    
    793
    
    
    
    116,333
    
    
    
    (76,317
    )(319,576
    )
    
    
    (517,101
    )
    
    
    (696,618
    )
    
    
    (1,136,764
    )Income from operations
    
    
    95,612
    
    
    
    147,690
    
    
    
    197,383
    
    
    
    199,859Other income:Interest income
    
    
    15,672
    
    
    
    9,735
    
    
    
    30,346
    
    
    
    18,226Net income
    
    $
    111,284
    
    
    $
    157,425
    
    
    $
    227,729
    
    
    $
    218,085Allocation of net income:General partner
    
    $
    94,868
    
    
    $
    34,748
    
    
    $
    164,614
    
    
    $
    69,565Limited partners
    
    
    16,416
    
    
    
    122,677
    
    
    
    63,115
    
    
    
    148,520$
    111,284
    
    
    $
    157,425
    
    
    $
    227,729
    
    
    $
    218,085Limited partners per unit share of net income
    
    $
    0.01
    
    
    $
    0.04
    
    
    $
    0.02
    
    
    $
    0.05
  5




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 
 Condensed Statements of Cash Flows
 (Unaudited)
 Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2005Net cash provided by operating activities
    
    $
    900,598
    
    
    $
    1,120,523Cash flows from investing activities:Proceeds from sale of container rental equipment
    
    
    1,211,672
    
    
    
    1,036,192Cash flows from financing activities:Distribution to general partner
    
    
    (70,483
    )
    
    
    (95,882
    )Distribution to limited partners
    
    
    (2,213,363
    )
    
    
    (2,685,878
    )Net cash used in financing activities
    
    
    (2,283,846
    )
    
    
    (2,781,760
    )Net decrease in cash and cash equivalents
    
    
    (171,576
    )
    
    
    (625,045
    )Cash and cash equivalents at the beginning of the period
    
    
    1,649,572
    
    
    
    2,235,887Cash and cash equivalents at the end of the period
    
    $
    1,477,996
    
    
    $
    1,610,842
  6




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies
 (a)
    
    Nature of Operations
     (b)
    
    Leasing Company and Leasing Agent Agreement
   7




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 Notes to Unaudited Condensed Financial Statements
 (b)
    
    Leasing Company and Leasing Agent Agreement (continued)
  (c)
    
    Basis of Accounting
  (d)
    
    Use of Estimates
   (e)
    
    Container Rental Equipment
    8




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 Notes to Unaudited Condensed Financial Statements
 (e)
    
    Container Rental Equipment (continued)
  (f)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners Capital
Accounts
     9




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 Notes to Unaudited Condensed Financial Statements
 (g)
    
    Financial Statement Presentation
   (2)
    
    Net Lease and Other Receivables Due from Leasing Company
  June 30,
    
    
    December 31,2006
    
    
    2005Gross lease and other receivables
    
    $
    728,131
    
    
    $
    933,160Less:Direct operating payables and accrued expenses
    
    
    205,208
    
    
    
    245,322Damage protection reserve
    
    
    40,829
    
    
    
    87,426Base management fees receivable
    
    
    (6,754
    )
    
    
    (1,497
    )Reimbursed administrative expenses
    
    
    10,105
    
    
    
    15,150Allowance for doubtful accounts
    
    
    155,172
    
    
    
    158,959404,560
    
    
    
    505,360Net lease and other receivables
    
    $
    323,571
    
    
    $
    427,800
  10




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CRONOS GLOBAL INCOME FUND XIV, L.P.
 Notes to Unaudited Condensed Financial Statements
 (3)
    
    Net Lease Revenue
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Rental revenue
    
    $
    547,395
    
    
    $
    870,378
    
    
    $
    1,175,730
    
    
    $
    1,760,205Less:Rental equipment operating expenses
    
    
    61,443
    
    
    
    94,510
    
    
    
    125,327
    
    
    
    196,420Base management fees
    
    
    38,361
    
    
    
    59,923
    
    
    
    82,213
    
    
    
    120,849Reimbursed administrative expensesSalaries
    
    
    22,516
    
    
    
    37,810
    
    
    
    53,091
    
    
    
    75,692Other payroll related expenses
    
    
    3,536
    
    
    
    4,331
    
    
    
    7,775
    
    
    
    11,736General and administrative expenses
    
    
    6,351
    
    
    
    9,013
    
    
    
    13,323
    
    
    
    18,885Total reimbursed administrative
expenses
    
    
    32,403
    
    
    
    51,154
    
    
    
    74,189
    
    
    
    106,313132,207
    
    
    
    205,587
    
    
    
    281,729
    
    
    
    423,582Net lease revenue
    
    $
    415,188
    
    
    $
    664,791
    
    
    $
    894,001
    
    
    $
    1,336,623
 (4)
    
    Operating Segment
   Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Dry cargo containers
    
    $
    418,567
    
    
    $
    649,788
    
    
    $
    913,636
    
    
    $
    1,304,013Refrigerated containers
    
    
    128,828
    
    
    
    220,590
    
    
    
    262,094
    
    
    
    456,192Total
    
    $
    547,395
    
    
    $
    870,378
    
    
    $
    1,175,730
    
    
    $
    1,760,205
  
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Managements Discussion and Analysis of Financial Condition and Results of
Operations
  Market Overview
      12




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Results of Operations
   
    
    Activity-related expenses, including agent and depot costs such as repairs,
maintenance and handling.
    
    Inventory-related expenses for off-hire containers, comprising storage and
repositioning costs. These costs are sensitive to the quantity of off-hire containers
as well as the frequency at which containers are re-delivered.
    
    Legal and other expenses, including legal costs related to the recovery of containers
and doubtful accounts, insurance and provisions for doubtful accounts.
 13




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Dry Cargo
    
    RefrigeratedContainers
    
    Containers40-Foot20-Foot
    
    40-Foot
    
    High-Cube
    
    20-Foot
    
    40-FootContainers on lease:Master lease
    
    
    2,602
    
    
    
    837
    
    
    
    111
    
    
    
    145
    
    
    
    5Term leaseShort term1
    
    
    1,283
    
    
    
    592
    
    
    
    24
    
    
    
    29
    
    
    
    Long term2
    
    
    256
    
    
    
    40
    
    
    
    3
    
    
    
    
    
    
    
    Subtotal
    
    
    4,141
    
    
    
    1,469
    
    
    
    138
    
    
    
    174
    
    
    
    5Containers off lease
    
    
    221
    
    
    
    100
    
    
    
    14
    
    
    
    55
    
    
    
    2Total container fleet
    
    
    4,362
    
    
    
    1,569
    
    
    
    152
    
    
    
    229
    
    
    
    7
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or
that may expire on or before June 2007.2.
    
    Long term leases represent term leases, the majority of which will expire between July
2007 and December 2010. Dry Cargo
    
    
    RefrigeratedContainers
    
    
    Containers40-Foot20-Foot
    
    
    40-Foot
    
    
    High-Cube
    
    
    20-Foot
    
    
    40-FootUnits
    
    
    %
    
    
    Units
    
    
    %
    
    
    Units
    
    
    %
    
    
    Units
    
    
    %
    
    
    Units
    
    
    %Total purchases
    
    
    8,778
    
    
    
    100
    %
    
    
    3,612
    
    
    
    100
    %
    
    
    216
    
    
    
    100
    %
    
    
    511
    
    
    
    100
    %
    
    
    350
    
    
    
    100
    %Less disposals
    
    
    4,416
    
    
    
    50
    %
    
    
    2,043
    
    
    
    57
    %
    
    
    64
    
    
    
    30
    %
    
    
    282
    
    
    
    55
    %
    
    
    343
    
    
    
    98
    %Remaining fleet at June 30, 2006
    
    
    4,362
    
    
    
    50
    %
    
    
    1,569
    
    
    
    43
    %
    
    
    152
    
    
    
    70
    %
    
    
    229
    
    
    
    45
    %
    
    
    7
    
    
    
    2
    %
 Three Months Ended June 30, 2006 Compared to the Three Months Ended June 30, 2005
 Net lease revenue
 Three Months EndedJune 30,
    
    June 30,2006
    
    2005Fleet size (measured in twenty-foot equivalent units (TEU))Dry cargo containers
    
    
    8,147
    
    
    
    10,480Refrigerated containers
    
    
    265
    
    
    
    455Average utilization ratesDry cargo containers
    
    
    94
    %
    
    
    95
    %Refrigerated containers
    
    
    76
    %
    
    
    88
    %
 Depreciation expense
 Other general and administrative expenses
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Net gain on disposal of equipment
  Six Months Ended June 30, 2006 Compared to the Six Months Ended June 30, 2005
 Net lease revenue
 Six Months EndedJune 30,
    
    June 30,2006
    
    2005Fleet size (measured in twenty-foot equivalent units (TEU))Dry cargo containers
    
    
    8,514
    
    
    
    10,723Refrigerated containers
    
    
    283
    
    
    
    482Average utilization ratesDry cargo containers
    
    
    92
    %
    
    
    95
    %Refrigerated containers
    
    
    75
    %
    
    
    87
    %
 Depreciation expense
 Other general and administrative expenses
 Net gain on disposal of equipment
  15




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Liquidity and Capital Resources
     Cash from Operating Activities
 Cash from Investing Activities
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Cash from Financing Activities
 Critical Accounting Policies
  
    
    Container equipment  depreciable lives
    
    Container equipment  valuation
    
    Allowance for doubtful accounts
  Inflation
  17




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Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk:
 
 Controls and Procedures
   18




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PART II  OTHER INFORMATION
 
   
   
   
   
   
   
   ExhibitNo
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended and
restated as of December 2, 1992
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
2, 1992, included as part of Registration Statement on Form S-1 (No. 33-51810)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-51810)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-51810)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not to be deemed filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act. 19




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SIGNATURES
  CRONOS GLOBAL INCOME FUND XIV, L.P.By
    
    Cronos Capital Corp.
The General PartnerBy
    
    /s/ Dennis J. Tietz

Dennis J. TietzPresident and Director of Cronos Capital Corp. (CCC)Principal Executive Officer of CCCBy
    
    /s/ John Kallas

John KallasChief Financial Officer andDirector of Cronos Capital Corp. (CCC)Principal Financial and Accounting Officer of CCCDate: August 11, 2006
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EXHIBIT INDEX
 ExhibitNo
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended and
restated as of December 2, 1992
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document ****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
2, 1992, included as part of Registration Statement on Form S-1 (No. 33-51810)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-51810)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-51810)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not to be deemed filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act.