FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
( ) 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 33-21267
CSA Income Fund Limited Partnership III
(Exact name of registrant as specified in its charter)
Massachusetts 04-3002909
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
22 Batterymarch St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip Code)
(617) 357-1700
(Registrant's telephone number, including area code)
Former name, former address and former fiscal year,
if changed since last report
Indicate by 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 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: X No:
PART I - FINANCIAL INFORMATION
CSA INCOME FUND LIMITED PARTNERSHIP III
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 1996 (UNAUDITED) AND
DECEMBER 31, 1995
_____________________________________________________________________________
(Unaudited)
March 31, 1966 December 31, 1995
Assets
Cash and cash equivalents $ 3,767,145 $ 6,210,985
Rentals receivable 372,367 5,928
Accounts receivable-affiliates - 200,169
Interest receivable 2,952 15,626
Notes receivable-lessee 85,000 85,000
Remarketing receivables 51,518 234,381
Rental equipment, at cost 26,730,428 26,648,802
Less accumulated depreciation (12,484,241) (15,490,492)
Net rental equipment 14,246,187 11,158,310
Total assets $ 18,525,169 $ 17,910,399
Liabilities and
partners' capital
Accounts payable - affiliates $ 558,370 $ 37,928
Accounts payable 30,170 36,803
Accrued management fees 55,696 49,632
Deferred income 393,973 450,786
Equipment payable 1,331,217 -
Notes payable 4,954,909 5,609,093
Limited recourse notes payable 25,475 38,009
Total liabilities 7,349,810 6,222,251
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 5,727 3,279
Cumulative cash distributions (338,936) (331,360)
(332,209) (327,081)
Limited Partners
(500,000 units):
Capital contributions net
of offering costs 44,539,778 44,539,778
Cumulative net income 567,005 324,666
Cumulative cash distributions (33,599,215) (32,849,215)
11,507,568 12,015,229
Partners' capital 11,175,359 11,688,148
Total liabilities and
partners' capital $ 18,525,169 $ 17,910,399
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED
MARCH 31, 1996 AND 1995
_____________________________________________________________________________
1996 1995
Revenue:
Rental income $ 1,662,791 $ 2,873,768
Interest income 57,405 50,583
Gain (loss) on sale of equipment (73,101) 82,010
Gain (loss) on foreign currency (679) 8,210
Total revenue 1,646,416 3,014,571
Costs and expenses:
Depreciation/amortization 1,157,823 2,191,388
Interest expense 115,179 107,987
Management fees 83,140 143,688
Storage and Refurbishment 5,000 5,000
General and administrative 40,487 40,816
Total expenses 1,401,629 2,488,879
Net income $ 244,787 $ 525,692
Net income allocation:
General Partner $ 2,448 $ 5,257
Limited Partners 242,339 520,435
$ 244,787 $ 525,692
Net income per Limited
Partnership Unit $ .48 $ 1.04
Number of Limited Partnership
Units 500,000 500,000
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED
MARCH 31, 1996 AND 1995
_____________________________________________________________________________
1996 1995
Cash flows from operations:
Cash received from rental
of equipment $ 1,925,046 $ 2,096,677
Cash paid for operating and
management expenses (129,196) (196,125)
Interest paid (109,132) (44,506)
Interest received 70,079 50,583
Net cash from operations 1,756,797 1,906,629
Cash flow from investments:
Value added tax deposits - 239,724
Purchase of equipment (4,393,193) -
Sale of equipment 285,633 966,299
Net cash from (used by)
investments (4,107,560) 1,206,023
Cash flows from financing:
Accounts payable - equipment
purchases 1,331,217 (98,995)
Repayment of notes payable (666,718) (1,135,601)
Payment of cash distributions (757,576) (757,576)
Net cash from (used by)
financing (93,077) (1,992,172)
Net change in cash
and cash equivalents (2,443,840) 1,120,480
Cash and cash equivalents
at beginning of period 6,210,985 3,070,446
Cash and cash equivalents
at end of period $ 3,767,145 $ 4,190,926
CSA INCOME FUND LIMITED PARTNERSHIP III
NOTE TO FINANCIAL STATEMENTS
______________________________________________________________________
The quarterly financial statements have been prepared by the
Partnership without audit. Certain information and footnote
disclosures normally included in the annual financial statements have
been condensed or omitted from the accompanying statements. For such
information, reference should be made to the financial statements and
notes thereto included in the Partnership's annual report on Form 10-K
for the year ended December 31, 1995.
In the General Partner's opinion, the unaudited financial statements
reflect all adjustments necessary to present fairly the financial
position of CSA Income Fund Limited Partnership III as of March 31,
1996 and December 31, 1995 and the results of operations and cash
flows for the periods presented therein.
CSA INCOME FUND LIMITED PARTNERSHIP III
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
______________________________________________________________________
Gross rental income was $1,662,791 and $2,873,768 and net income was
$244,787 and $525,692 for the quarters ended March 31, 1996 and 1995,
respectively. The decrease in gross rental income and net income is
attributable to the expected occurrence of reduced rental rates for
released equipment and to the ongoing sale of equipment from the
Partnership's portfolio.
The Partnership generated $2,042,430 in cash flow from operations and
from the sale of equipment during the three months ended March 31,
1996. The Partnership used these funds and cash on hand to acquire
additional equipment of $4,393,193, pay down notes payable by $666,718
and pay cash distributions to the Limited Partners of $750,000.
The Partnership's results of operations and liquidity in future
periods will be dependent upon the addition of leased equipment, the
sale and/or re-lease of equipment as it comes off lease and the level
of debt service.
The Partnership distributed $ .50 per limited partnership unit on the
15th of January, February and March 1996. To date, the Partnership has made
cash distributions to the Limited Partners ranging from 60% to 76% of
their initial investment, depending on when the Limited Partner
entered the Partnership. The objective of the Partnership is to return
the Limited Partners' investment through current cash distributions
and provide a return on this investment by continued distributions as
long as the equipment continues to be leased. However, revenue
generated by the Partnership from lease renewals and remarketings
after the initial lease terms have been lower than anticipated as a
result of more rapid obsolescence in high technology equipment. While
the General Partner continues to pursue additional lease opportunities
to increase the Partnership's distributions, based on an analysis of
the remaining assets in the Partnerships' portfolio, the General
Partner presently estimates that the continued cash distributions may
not fully return the entire initial investment of the Limited Partners
and/or a return thereon. The General partner will continue to report
on the Limited Partners' return of investment with each cash
distribution.
CSA INCOME FUND LIMITED PARTNERSHIP III
PART II
_____________________________________________________________________________
Item 1 - Legal Proceedings
None
Item 2 - Changes in Securities
None
Item 3 - Defaults Upon Senior Securities
None
Item 4 - Submission of Matters to a Vote of Security Holders
None
Item 5 - Other Information
None
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits - Exhibit 27. Financial Data Schedule.
(b) Reports on Form 8-K - No reports have been filed on Form 8-K during
this quarter.
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.
CSA Income Fund Limited
Partnership III (Registrant)
By its General Partner,
CSA Equity Funds, Inc.
Date: 5/13/96 /s/ J. Frank Keohane
J. Frank Keohane
President and
Principal Executive Officer
Date: 5/13/96 /s/ Richard F. Sullivan
Richard F. Sullivan
Vice President,
Principal Accounting and
Finance Officer