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, 1999
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) 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,
1999 1998
Assets
Cash and cash
equivalents $ 118,355 $ 428,948
Rentals receivable 1,585 786
Accounts receivable-affiliates - 11,376
Remarketing receivables - 699
Rental equipment, at cost 14,974,313 16,996,622
Less accumulated depreciation (11,625,819) (12,429,074)
Net rental equipment 3,348,494 4,567,548
Total assets $ 3,468,434 $ 5,009,357
Liabilities and partners' capital
Accounts payable $ 8,827 $ 46,669
Accounts payable-affiliates 3,631 -
Accrued management fees 28,214 18,145
Deferred income 18,684 31,905
Notes Payable 1,065,376 1,715,804
Total liabilities 1,124,732 1,812,523
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 428,844 421,268
Cumulative cash distributions (429,844) (422,268)
0 0
Limited Partners (500,000 units):
Capital contributions
net of offering costs 44,539,778 44,539,778
Cumulative net income 403,139 506,271
Cumulative cash distributions (42,599,215) (41,849,215)
2,343,702 3,196,834
Partners' capital 2,343,702 3,196,834
Total liabilities and
partners' capital $ 3,468,434 $ 5,009,357
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF OPERATIONS
Quarters Ended March 31,
(unaudited)
1999 1998
Revenues:
Rental income $ 1,057,341 $ 2,374,208
Interest income 1,019 1,041
Gain on sale of
equipment 8,849 79,547
Gain (loss) on foreign
currency (77) 245
Total revenues 1,067,132 2,455,041
Costs and expenses:
Depreciation 1,046,261 2,091,695
Interest expense 27,987 232,979
Management fees 52,867 118,711
Storage & Refurbishment 9,000 -
General and
administrative 26,573 43,838
Total expenses 1,162,688 2,487,223
Net (loss) $ (95,556) $ (32,182)
Net income (loss)
allocation:
General Partner $ 7,576 $ 79,547
Limited Partners (103,132) (111,729)
$ (95,556) $ (32,182)
Net loss
per Limited Partnership
Unit $ ( .21) $ (.22)
Number of Limited
Partnership Units 500,000 500,000
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF CASH FLOWS
Quarters Ended March 31,
(Unaudited)
1999 1998
Cash flows from operations:
Cash received from rental
of equipment $ 1,043,242 $ 2,373,966
Cash paid for operating
and management expenses (116,210) (186,149)
Interest paid (27,987) (232,979)
Interest received 1,019 1,041
Net cash provided by
operations 900,064 1,955,879
Cash flow from investments:
Sale of equipment 182,341 768,323
Net cash provided by
(used by) investments 182,341 768,323
Cash flows from financing:
Advances to/from
affiliates 15,005 250,000
Payment from notes
receivable - 10,933
Repayment of notes
payable (650,427) (2,308,993)
Payment of cash
distributions (757,576) (757,576)
Net cash
used by financing (1,392,998) (2,805,636)
Net change in cash
and cash equivalents (310,593) (81,434)
Cash and cash equivalents
at beginning of period 428,948 200,328
Cash and cash equivalents
at end of period $ 118,355 $ 118,894
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, 1998.
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, 1999 and March 31, 1998 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
Total Revenue for the quarters ended March 31, 1999 and 1998 was
$1,067,132 and $2,455,041, respectively. Net loss for the quarter
ended March 31, 1999 was $95,556 as compared to $32,182 in the
quarter ended March 31, 1998. The net loss was primarily
attributable to the increase in depreciation expense as a percentage
of rental income as the portfolio winds-down. The net income was
also affected by gains recorded on sale of equipment of $8,849 for
the quarter ended March 31, 1999 as compare to $79,547 for the
quarter ended March 31, 1998.
The Partnership generated $1,082,405 in net cash flow from
Operations and from the sale of equipment during the three months
ended March 31, 1999. The Partnership used these funds, and cash on
hand to reduce notes payable by $650,427 and pay cash distributions
to the Limited Partners of $750,000.
As reported in previous reports, the General Partner of CSA Income
Fund Limited Partnership III is in the process of winding up the
Partnership. The General Partner is endeavoring to complete the
remarketing of the remaining leases and wind-up the Partnership
by June 30, 1999. However, the General Partner is trying to
maximize the proceeds attainable from the existing lessees before
having to sell the equipment e.g. to another lessor. The process may
continue for a short period beyond June 30th if it is to the benefit
of the Partners.
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 gains on the disposition of
partnership assets were allocated during the first quarter of 1999
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 1999. To date, the
Partnership has made cash distributions to the Limited Partners
ranging from 78% to 94% 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
first quarter of 1999.
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:
/s/ J. Frank Keohane
J.Frank Keohane President
Principal Executive Officer
Date:
/s/ Richard P.Timmons
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer