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, 2001
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 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 IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF
March 31, December 31,
2001 2000
Unaudited
Assets
Cash and cash equivalents $ 172,336 $ 3,488,610
Short term investment 3,500,000 -
Rentals receivable 133,166 206,146
Remarketing Receivable 340,407 578,038
Accounts receivable - affiliates - 20,585
Rental equipment, at cost 35,376,427 38,993,398
Less accumulated depreciation (29,584,607) (31,020,635)
Net rental equipment 5,791,820 7,972,763
Total assets $ 9,937,729 $ 12,266,142
Liabilities and partners' capital
Accrued management fees $ 40,332 $ 116,621
Accounts payable and accrued expenses 33,767 32,800
Deferred income 58,123 127,957
Notes Payable 1,184,863 2,284,571
Total liabilities 1,317,085 2,561,949
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 126,592 61,643
Cumulative cash distributions (444,565) (431,769)
(316,973) (369,126)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 6,233,726 6,102,487
Cumulative cash distributions (43,497,148) (42,230,207)
8,937,617 10,073,319
Total partners' capital 8,620,644 9,704,193
Total liabilities and
Partners' capital $ 9,937,729 $ 12,266,142
See accompanying notes to financial statements.
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
Unaudited Quarters Ended March 31,
2001 2000
Revenues:
Rental income $ 2,131,502 $ 2,812,258
Interest income 34,741 45,497
Gain on sale of equipment 64,949 315,385
Net loss on foreign
Currency transactions (68,306) (2,806)
Total revenues 2,162,886 3,170,334
Costs and expenses:
Depreciation 1,719,803 2,290,910
Interest 42,213 160,700
Management fees 111,414 217,675
General and administrative 93,268 114,176
Total expenses 1,966,698 2,783,461
Net income $ 196,188 $ 386,873
Net income allocation:
General Partner $ 64,949 $ 3,868
Limited Partners 131,239 383,005
$ 196,188 $ 386,873
Net income per weighted average
Limited Partnership Unit $ .26 $ .76
Number of weighted average
Limited Partnership Units 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
Unaudited Quarters Ended
March 31, March 31,
2001 2000
Cash flows from operations:
Cash received from rental
of equipment $ 2,086,926 $ 2,814,888
Cash paid for operating and
management expenses (280,004) (322,255)
Interest paid (42,213) (166,406)
Interest received 34,741 45,497
Net cash from operations 1,799,450 2,371,724
Cash flow from investments:
Short term investment (3,500,000) -
Sale of equipment 763,721 707,422
Net Cash provided by
(used for) investments (2,736,279) 707,422
Cash flows from financing:
Proceeds from notes payable - 485,037
Repayment of notes payable (1,099,708) (1,891,737)
Payment of cash distributions (1,279,737) (1,023,787)
Net cash used for
financing (2,379,445) (2,430,487)
Net change in cash
and cash equivalents (3,316,274) 648,659
Cash and cash equivalents
at beginning of period 3,488,610 3,679,408
Cash and cash equivalents
at end of period $ 172,336 $ 4,328,067
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, 2000.
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 March 31, 2001 and the results of operations and cash flows for the
Three month periods ended March 31, 2001 and March 31, 2000.
CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $2,131,502 and $2,812,258 and net income was $196,188
And $386,873 for the quarters ended March 31, 2001 and March 31, 2000,
respectively. The decrease in rental income was primarily due to lease
expirations as the partnership approaches wind-up. The decrease in net
income was primarily due to a decrease in gain on sale of equipment
recorded in the quarter ended March 31, 2001 of $64,949 as compared to $315,385
for the same period in 2000.
During the first quarter of 2001, the Partnership recorded a loss on foreign
currency of $68,306 due to the US Dollar's increased strength versus European
currencies. The loss was the result of two factors: first, the Partnership had
cash balances in English sterling of approximately 720,000 as of and recorded
on it's December 31, 2000 Balance Sheet, also secondly, sales and rent
proceeds received during this first quarter ended March 31, 2001 were
approximately 730,000. These cash balances are marked to market for reporting
on U.S.Financial Statements and since the value of sterling was 1.4159 as of
March 31st, an appropriate adjustment was made for the US Dollar equivalent
on the Partnership Financial Statements as of this date.
The Partnership generated $2,563,171 in cash flow from operations and
From the sale of equipment during the three months ended March 31, 2001. The
Partnership utilized these funds to reduce outstanding notes payable by
$1,099,708 and made cash distributions to partners of $1,279,737.
During March 2001, the Partnership purchased an interest, as an interim lender,
secured by equipment and a short term monthly lease payment obligation of a
Fortune 100 Company. The Partnership's portion of the short-term loan
participation was $3,800,666 of which $3,500,000 was outstanding as of March 31,
2001. The Partnership earns interest at the rate of 7.75% per annum on the
monthly reducing balances over the life of the participation. The General
Partner, in it's own right, has participated in this loan in an approximate
amount of $3,586,000. It is expected that this loan will be paid off by a
permanent lender in 30-60 days.
The Partnership paid distributions of $.83 per limited partnership unit on the
15th of January, February and March 2001.
To date, the Partnership has made cash distributions to the Limited Partners
ranging from 74% to 96% 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.
During the fourth quarter of year 2000, the General Partner of CSA Income
Fund IV Limited Partnership determined that it was in the best interest of
the Partnership and the Limited Partners to begin the wind-up of the Partnership
in year 2001. The wind-up is currently anticipated to be completed
during year 2002.
GENERAL PARTNER'S DISCUSSION OF OPERATIONS (continued)
In accordance with the Partnership Agreement, pursuant to section 8.3 (c),
accounting profits from the sale of equipment that are generated as part of the
Partnership's wind-up shall be allocated to each partner, first in the amount
equal to the negative balance in the capital account of such partner;
and secondly, 99% to the Limited Partners and 1% to the General Partner until
the Capital Accounts of the Limited Partners are equal to the amount of cash
which would be required to be distributed to the Limited Partners in order to
achieve Payout. Therefore, certain gains on the disposition of partnership
assets were allocated during the first quarter of 2001 to the General Partner to
reduce its Capital Account negative balance. This accounting entry has no cash
impact on future Limited Partnership distributions.
Management reviews the Partnership's projected performance on a periodic
basis. Based on that analysis the General Partner presently estimates that
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 - There were no reports filed during the
first quarter of 2001.
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 (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date: May 15, 2001
J. Frank Keohane
President
Principal Executive Officer
Date: May 15, 2001
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer