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 September 30, 2000
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 33-32744
CSA Income Fund IV Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts 04-3072449
(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 fiscar 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 IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited)
September 30, December 31,
2000 1999
Assets
Cash and cash equivalents $ 3,559,512 $ 3,679,408
Rentals receivable 103,815 326,758
Accounts receivable - affiliates 87,977 223,076
Rental equipment, at cost 45,259,350 52,073,878
Less accumulated depreciation (34,389,583) (34,683,355)
Net rental equipment 10,869,767 17,390,523
Total assets $ 14,621,071 $ 21,619,765
Liabilities and partners' capital
Accrued management fees $ 75,802 $ 93,749
Accrued interest expense - 11,562
Accounts payable 30,738 12,982
Deferred income 117,218 138,508
Notes payable 3,683,137 8,185,541
Total liabilities 3,906,895 8,442,342
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 58,945 51,158
Cumulative cash distributions (418,970) (386,554)
(359,025) (334,396)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 5,835,432 5,064,472
Cumulative cash distributions (40,963,270) (37,753,692)
11,073,201 13,511,819
Total partners' capital 10,714,176 13,177,423
Total liabilities and
partners' capital $ 14,621,071 $ 21,619,765
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE
MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
Three Months Nine Months
September 30, September 30,
2000 1999 2000 1999
Revenues:
Rental income $ 2,369,015 $ 3,223,689 $ 7,678,348 $11,310,065
Interest income 55,535 61,886 157,805 117,733
Gain on sale
of equipment 53,879 91,183 551,759 230,000
Net gain (loss) on
foreign currency (19,131) 20,974 (35,532) 13,125
Total revenues 2,459,298 3,397,732 8,352,380 11,670,923
Costs and expenses:
Depreciation 1,963,066 2,582,507 6,259,236 8,567,472
Interest 90,980 242,621 389,443 839,221
Management fees 178,230 261,935 584,554 919,059
General and
administrative 111,782 82,958 340,400 211,480
Total expenses 2,344,058 3,170,021 7,573,633 10,537,232
Net income $ 115,240 $ 227,711 $ 778,747 $ 1,133,691
Net income allocation:
General Partner $ 1,152 $ 2,277 $ 7,787 $ 11,337
Limited Partners 114,088 225,434 770,960 1,122,354
$ 115,240 $ 227,711 $ 778,747 $ 1,133,691
Net income per
weighted average
Limited Partnership
Unit $ 0.22 $ 0.45 $ 1.52 $ 2.21
Number of weighted
average Limited
Partnership Units 506,776 506,776 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Cash flows from
operations:
Cash received from
rental of equipment $2,319,535 $ 3,249,691 $ 7,844,466 $11,385,797
Cash paid for
operating and
management expenses (291,819) (362,550) (925,144) (1,251,344)
Interest paid (100,101) (248,038) (401,005) (855,062)
Interest received 55,535 61,886 157,805 117,733
Net cash from
operations 1,983,150 2,700,989 6,676,122 9,397,124
Cash flow from investments:
Purchase of equipment - (919,580) (1,142,310) (1,228,380)
Sale of equipment 460,942 1,540,847 1,955,590 2,320,695
Net cash from
investments 460,942 621,267 813,280 1,092,315
Cash flows from financing:
Advances to/from
affiliates 74,827 20,341 135,100 295,097
Proceeds from notes
payable - 470,274 485,037 3,069,485
Repayment of notes
payable (1,443,975) (2,294,877) (4,987,441) (7,938,494)
Payment of cash
distributions (1,194,420) (767,844) (3,241,994) (2,303,527)
Net cash used
for financing (2,563,568) (2,572,106) (7,609,298) (6,877,439)
Net change in cash and
cash equivalents (119,476) 750,150 (119,896) 3,612,000
Cash and cash equivalents
at beginning of
period 3,678,988 3,422,043 3,679,408 560,193
Cash and cash
equivalents
at end of period $3,559,512 $4,172,193 $3,559,512 $4,172,193
CSA INCOME FUND IV LIMITED PARTNERSHIP
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, 1999.
In the General Partner's opinion, the unaudited financial statements
reflect all adjustments, which are of a normal recurring nature,
necessary to present fairly the financial position of CSA Income
Fund IV Limited Partnership as of September 30, 2000 and the
results of operations and cash flows for the three and nine month
periods ended September 30, 2000 and September 30, 1999.
CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $2,369,015 and $3,223,689 and net income was $115,240 and
$227,711 for the quarters ended September 30, 2000 and 1999, respectively.
For the nine months ended September 30, 2000 and 1999, rental income was
$7,678,348 and $11,310,065, and net income was $778,747 and $1,133,691. The
decreases in rental income and net income were due primarily to the
anticipated lease expirations as the Partnership enters its wind-up stage.
Net income was also impacted by increased storage and refurbishment costs
relating to expired equipment currently being sold from the Partnership's
portfolio. This expired equipment includes several large personal computer
(PC) leases, which are being remarketed in small lots to obtain maximum sales
proceeds. Net income was also lower due to a larger gain on sale of
equipment of $91,183 in September 30, 1999 vs. $53,879 in the current quarter
ended September 30, 2000. However, for the nine months ended
September 30, 2000 gain on sales of equipment was $551,759 vs. $230,000
for the comparable period in 1999.
During the third quarter the Partnership generated cash from operations of
$1,983,150 and $460,942 from the sale of equipment for a combined cash
inflow of $2,444,092. This cash and cash on hand were used to reduce debt
by $1,443,975 and to distribute $1,194,420 to partners. During the nine
months ended September 30, 2000, The Partnership generated $8,631,712 in
cash flow from operations and sales of equipment. The Partnership utilized
these funds, cash on hand, and proceeds from notes payable to acquire
additional equipment of $1,142,310, reduce notes payable by $4,987,441 and
make distributions to partners of $3,241,994.
The Partnership paid a distributions of $.67 per Limited Partnership unit on
July 14th, and $.83 per Limited Partnership unit on August 15th, and
September 15th.
To date, the Partnership has made cash distributions to the Limited Partners
ranging from 69% to 91% of their initial investment, depending on when the
Limited Partners entered the Partnership. The objective of the Partnership
is to return the Limited Partner's investment through current distributions
and provide a return on this investment by continued distributions.
The General Partner, as previously stated, anticipates beginning the wind up
of the Partnership by the end of the year 2000, which may continue into
calendar year 2002. In anticipation of this wind-up process the Limited
Partner's distribution was increased from 8% to 10% effective with the
August 15th distribution.
Management reviews the Partnership's projected performance on a periodic
basis. Based on that analysis, the General Partner presently estimates that
the continued cash distributions will return the entire initial investment
of the Limited Partners and a return thereon. The General Partner will
continue to report on the Limited Partners' return of investment with each
cash distribution.
CSA INCOME FUND IV LIMITED PARTNERSHIP
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 third quarter of 2000.
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 IV Limited Partnership
Partnership (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date:
J. Frank Keohane
President
Principal Executive Officer
Date:
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer