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 June 30, 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) 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:
CSA INCOME FUND LIMITED PARTNERSHIP III
PART I - FINANCIAL INFORMATION
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited)
June 30, December 31,
1999 1998
Assets
Cash and cash
equivalents $ 9,662 $ 428,948
Rentals receivable 9,917 786
Accounts receivable-affiliates - 11,376
Remarketing receivables - 699
Rental equipment,at cost 11,222,934 16,996,622
Less accumulated
depreciation (9,462,923) (12,429,074)
Net rental equipment 1,760,011 4,567,548
Total assets $ 1,779,590 $ 5,009,357
Liabilities and
partners' capital
Accounts payable $ 12,290 $ 46,669
Accrued management fees 22,150 18,145
Deferred income 11,334 31,905
Notes payable 178,917 1,715,804
Total liabilities 224,691 1,812,523
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 436,420 421,268
Cumulative cash
distributions (437,420) (422,268)
0 0
Limited Partners
(500,000 units):
Capital contributions
net of offering costs 44,539,778 44,539,778
Cumulative net income 364,336 506,271
Cumulative cash
distributions (43,349,215) (41,849,215)
1,554,899 3,196,834
Total Partners' capital 1,554,899 3,196,834
Total liabilities and
partners' capital $ 1,779,590 $ 5,009,357
CSA INCOME FUND LIMITED PARTNERSHIP III
UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1999 AND 1998
Three Months Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Revenues:
Rental income $ 972,759 $1,999,566 $ 2,030,100 $4,373,774
Interest income 337 489 1,356 1,530
Gain on sale
of equipment 40,670 65,101 49,519 144,648
Gain (loss) on
foreign currency (67) (47) (145) 198
Total revenues 1,013,699 2,065,109 2,080,830 4,520,150
Costs and expenses:
Depreciation 949,156 1,840,879 1,995,417 3,932,574
Interest expense 14,979 168,804 42,966 401,783
Management fees 58,366 99,978 121,806 218,689
Storage and
Refurbishment 3,500 - 12,500 -
General and
administrative 18,925 37,946 34,924 81,784
Total expenses 1,044,926 2,147,607 2,207,613 4,634,830
Net loss $ (31,227) $ (82,498) $ (126,783) $ (114,680)
Net income (loss)
allocation:
General Partner $ 7,576 $ 59,551 $ 15,152 $ 139,098
Limited Partners (38,803) (142,049) (141,935) (253,778)
$ (31,227) $ (82,498) $ (126,783) $ (114,680)
Net loss per
Limited Partnership
Unit $ (.08) $ (.28) $ (.28) $ (.51)
Number of Limited
Partnership Units 500,000 500,000 500,000 500,000
CSA INCOME FUND LIMITED PARTNERSHIP III
UNAUDITED STATEMENTS OF CASH FLOWS FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1999 AND 1998
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Cash flows from operations:
Cash received from rental
of equipment $ 957,209 $2,048,046 $ 2,000,451 $4,422,012
Cash paid for operating
and management
expenses (83,394) (159,771) (199,604) (345,920)
Interest paid (14,979) (168,804) ( 42,966) (401,783)
Interest received 337 489 1,356 1,530
Net cash provided by
operations 859,173 1,719,960 1,759,237 3,675,839
Cash flow from investments:
Sale of equipment 679,798 3,622,059 862,139 4,390,382
Net cash provided by
investments 679,798 3,622,059 862,139 4,390,382
Cash flows from financing:
Advances to/from
affiliates (3,629) (259,095) 11,376 (9,095)
Proceeds from notes
receivable - - - 10,933
Repayment of notes
payable (886,459) (4,301,653) (1,536,886) (6,610,646)
Payment of cash
distributions (757,576) (757,576) (1,515,152) (1,515,152)
Net cash used by
financing (1,647,664) (5,318,324) (3,040,662) (8,123,960)
Net change in cash
and cash equivalents (108,693) 23,695 (419,286) (57,739)
Cash and cash equivalents
at beginning of period 118,355 118,894 428,948 200,328
Cash and cash equivalents
at end of period $ 9,662 $ 142,589 $ 9,662 $ 142,589
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 disclosure 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 June 30, 1999
and June 30, 1998 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
Total Revenue for the quarters ended June 30, 1999 and 1998 was $1,013,699 and
$2,065,109, respectively. Net loss for the quarter ended June 30, 1999 was
$31,227 as compared to $82,498 in the quarter ended June 30, 1998. The net
loss was primarily attributable to the increase in depreciation expense as
a percentage of rental income as the portfolio winds-up.
The Partnership generated $2,621,376 in net cash flow from operations and from
sale of equipment during the six months ended June 30, 1999. The Partnership
used these funds and cash on hand to reduce notes payable by $1,536,886 and
pay cash distributions to the Limited partners of $1,500,000.
As reported in previous financial 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 by September 30, 1999. The Partnership will continue to pay a monthly
distribution at the current rate until the final distribution is paid.
In accordance with the Partnership Agreement, pursuant to section 8.3 (c),
accounting profits from the sale of equipment that result 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 second 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 April, May, and June 1999. To date, the Partnership has made cash
distributions to the Limited Partners ranging from 79% to 95% of their
initial investment, depending on when the Limited Partner entered the
Partnership.
As previously reported, the General Partner still estimates that the
continued cash distributions will 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 the second 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
President
Principal Executive Officer
Date:
/s/ Richard P.Timmons
Corporate Controller
Principal Accounting and
Finance Officer