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, 1998
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
STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited)
March 31, December 31,
1998 1997
Assets
Cash and cash
equivalents $ 118,894 $ 200,328
Rentals receivable 25,515 45,665
Accounts receivable-
affiliates - 61,368
Notes receivable-
lessee 3,708 14,641
Remarketing receivables - 56,010
Rental equipment,
at cost 31,335,746 32,491,943
Less accumulated
depreciation (15,301,209) (13,732,945)
Net rental
equipment 16,034,537 18,758,998
Total assets $ 16,182,654 $ 19,137,010
Liabilities and
partners' capital
Accounts payable $ 52,175 $ 78,738
Accounts payable-
affiliates 188,632 -
Accrued management fees 38,599 35,639
Deferred income 39,924 60,558
Notes Payable 10,320,988 12,629,981
Total liabilities 10,640,318 12,804,916
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 346,567 267,020
Cumulative cash
distributions (399,542) (391,966)
(51,975) (123,946)
Limited Partners
(500,000 units):
Capital contributions
net of offering
costs 44,539,778 44,539,778
Cumulative net
income 653,748 765,477
Cumulative cash
distributions (39,599,215) (38,849,215)
5,594,311 6,456,040
Partners' capital 5,542,336 6,332,094
Total liabilities and
partners' capital $ 16,182,654 $ 19,137,010
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF OPERATIONS
Quarters Ended March 31,
(Unaudited)
1998 1997
Revenues:
Rental income $ 2,374,208 $ 2,466,603
Interest income 1,041 13,030
Gain on sale of
equipment 79,547 71,449
Gain on foreign
currency 245 2,145
Total revenues 2,455,041 2,553,227
Costs and expenses:
Depreciation 2,091,695 1,979,852
Interest expense 232,979 254,227
Management fees 118,711 123,330
Storage & Refurbishment - 2,000
General and
administrative 43,838 44,209
Total expenses 2,487,223 2,403,618
Net income (loss) $ (32,182) $ 149,609
Net income (loss)
allocation:
General Partner $ 79,547 $ 71,449
Limited Partners (111,729) 78,160
$ (32,182) $ 149,609
Net income (loss)
per Limited Partnership
Unit $ ( .22) $ .16
Number of Limited
Partnership Units 500,000 500,000
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF CASH FLOWS
Quarters Ended March 31,
(Unaudited)
1998 1997
Cash flows from operations:
Cash received from rental
of equipment $ 2,373,966 $ 2,456,146
Cash paid for operating
and management expenses (186,149) (172,958)
Interest paid (232,979) (254,227)
Interest received 1,041 13,030
Net cash from
operations 1,955,879 2,041,991
Cash flow from investments:
Purchase of equipment - (5,470,922)
Sale of equipment 768,323 378,712
Net cash from
(used by) investments 768,323 (5,092,210)
Cash flows from financing:
Advances to/from
affiliates 250,000 3,926,597
Payment from notes
receivable 10,933 6,848
Proceeds from notes
payable - 1,642,258
Repayment of notes
payable (2,308,993) (1,995,729)
Payment of cash
distributions (757,576) (757,576)
Net cash from
(used by) financing (2,805,636) 2,822,398
Net change in cash
and cash equivalents (81,434) (227,821)
Cash and cash equivalents
at beginning of period 200,328 450,785
Cash and cash equivalents
at end of period $ 118,894 $ 222,964
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, 1997.
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, 1998 and March 31, 1997 and the results
of operations and cash flows for the periods
presented therein.
CSA INCOME FUND LIMITED PARTNERSHIP III
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Gross rental income was $2,374,208 and $2,446,603
for the quarters ended March 31, 1998 and 1997,
respectively. Net loss for the quarter ended March
31, 1998 was $32,182 as compared to net income of
$149,609 in the quarter ended March 31, 1997. The
decrease in net income was primarily attributable
to the increase in depreciation expense associated
with the equipment purchased in 1996 and early
1997.
The Partnership generated $2,724,202 in cash
flow from operations and from the sale of
equipment during the three months ended March 31,
1998. The Partnership used these funds,an advance
of $250,000 from the General Partner and cash on
hand to reduce notes payable by $2,308,994 and pay
cash distributions to the Limited Partners of
$750,000.
The General Partner of CSA Income Fund Limited
Partnership III informed the Limited Partners in
the Partnership's 1997 10-K and Annual Report that
it was in the best interest of the Limited Partners
and the Partnership to complete the wind up of the
Partnership in 1998. In accordance with the
Partnership Agreement, pursuant to section 8.3(c),
accounting profits from the sale of equipment that
results in the dissolution of the Partnership,
shall be allocated to each partner first in the
amount equal to the negative balance in the
capital Account of such partner. In connection
with the wind up of the Partnership, certain accounting
gains on the disposition of partnership assets were
allocated during the first quarter of 1998 to the
General Partner to reduce its Capital Account
negative balance.
The Partnership distributed $ .50 per limited
partnership unit on the 15th of January, February
and March 1998. To date, the Partnership has made
cash distributions to the Limited Partners ranging
from 72% to 88% of their initial investment,
depending on when the Limited Partner entered
the Partnership. As previously reported, certain
revenues 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. Also as previously reported, the
General Partner still 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 - none.
(b)Reports on Form 8-K - There were
no reports filed during the first
quarter of 1998.
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: 05/15/98
/s/ J. Frank Keohane
J.Frank Keohane President
Principal Executive Officer
Date: 05/15/98
/s/ Richard P.Timmons
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer