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, 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:
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PART I - FINANCIAL INFORMATION
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF
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<caption>
(Unaudited)
June 30, December 31,
2001 2000
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Assets
Cash and cash equivalents $ 439,189 $ 3,488,610
Short term investment 3,415,933 -
Rentals receivable 172,809 206,146
Remarketing receivable 95,778 578,038
Accounts receivable - affiliates 19,812 20,585
Rental equipment, at cost 34,210,181 38,993,398
Less accumulated depreciation (29,926,866) (31,020,635)
Net rental equipment 4,283,315 7,972,763
Total assets $ 8,426,836 $ 12,266,142
Liabilities and partners' capital
Accrued management fees $ 20,482 $ 116,621
Accounts payable and Accrued expenses 29,786 32,800
Deferred income 120,705 127,957
Notes payable 488,538 2,284,571
Total liabilities 659,511 2,561,949
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 155,421 61,643
Cumulative cash distributions (457,362) (431,769)
(300,941) (369,126)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 6,631,313 6,102,487
Cumulative cash distributions (44,764,086) (42,230,207)
8,068,266 10,073,319
Total partners' capital 7,767,325 9,704,193
Total liabilities and
partners' capital $ 8,426,836 $ 12,266,142
</table>
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CSA INCOME FUND IV LIMITED PARTNERSHIP
UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX
MONTH PERIODS ENDED JUNE 30, 2001 AND 2000
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<caption>
Three Months Six Months
June 30, June 30,
2001 2000 2001 2000
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Revenues:
Rental income $ 1,747,390 $ 2,497,075 $ 3,878,892 $ 5,309,333
Interest income 87,673 56,773 122,414 102,270
Gain on sale
of equipment 28,829 182,495 93,778 497,880
Net gain (loss) on
foreign currency 2,179 (13,595) (66,127) (16,401)
Total revenues 1,866,071 2,722,748 4,028,957 5,893,082
Costs and expenses:
Depreciation 1,243,324 2,005,260 2,963,127 4,296,170
Interest 17,737 137,763 59,950 298,463
Management fees 90,150 188,649 201,564 406,324
General and
administrative 88,444 114,442 181,712 228,618
Total expenses 1,439,655 2,446,114 3,406,353 5,229,575
Net income $ 426,416 $ 276,634 $ 622,604 $ 663,507
Net income allocation:
General Partner $ 28,829 $ 2,767 $ 93,778 $ 6,635
Limited Partners 397,587 273,867 528,826 656,872
$ 426,416 $ 276,634 $ 622,604 $ 663,507
Net income per
weighted average
Limited Partnership
Unit $ 0.78 $ 0.54 $ 1.04 $ 1.30
Number of weighted
average Limited
Partnership Units 506,776 506,776 506,776 506,776
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CSA INCOME FUND IV LIMITED PARTNERSHIP
UNAUDITED STATEMENTS OF CASH FLOWS FOR THE THREE
AND SIX MONTH PERIODS ENDED JUNE 30, 2001 AND 2000
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<caption>
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
<s> <c> <c> <c> <c>
Cash flows from
operations:
Cash received from
rental of
equipment $ 1,752,697 $ 2,690,881 $ 3,839,623 $ 5,524,931
Cash paid for
operating and
management expenses (202,425) (311,070) (482,429) (633,325)
Interest paid (17,737) (134,498) (59,950) (300,904)
Interest received 87,673 56,773 122,414 102,270
Net cash from
operations 1,620,208 2,302,086 3,419,658 4,692,972
Cash flow from investments:
Short term investment 84,067 - (3,415,933) -
Purchase of equipment - (1,142,310) - (1,142,310)
Sale of equipment 538,638 787,226 1,302,359 1,494,648
Net cash from (used
for) investments 622,705 (355,084) (2,113,574) 352,338
Cash flows from financing:
Advances to/from
affiliates - 79,435 - 60,273
Proceeds from notes
payable - - - 485,037
Repayment of notes
payable (696,325) (1,651,729) (1,796,033) (3,543,466)
Payment of cash
distributions (1,279,735) (1,023,787) (2,559,472) (2,047,574)
Net cash used
for financing (1,976,060) (2,596,081) (4,355,505) (5,045,730)
Net change in cash and
cash equivalents 266,853 (649,079) (3,049,421) (420)
Cash and cash equivalents
at beginning of period 172,336 4,328,067 3,488,610 3,679,408
Cash and cash equivalents
at end of period $ 439,189 $3,678,988 $ 439,189 $3,678,988
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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 June 30, 2001 and the results of operations
and cash flows for the three and six month periods ended June 30, 2001
and June 30, 2000.
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CSA INCOME FUND IV LIMITED PARTNERSHIP
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $1,747,390 and $2,497,075 and Net income was $426,416
and $276,634 for the quarters ended June 30, 2001 and 2000,
respectively. For the six months ended June 30, 2001 and 2000, Rental
income was $3,878,892 and $5,309,333, and Net income was $622,604 and
$663,507. The decrease in overall Rental income was primarily due to
anticipated lease expirations as the partnership approaches wind-up.
However, The increase in Net income was primarily due to a decrease in
depreciation, interest and management fee expense on equipment leases
that have expired.
During the three months ended June 30, 2001, the Partnership generated
$2,158,846 in cash flow from operations and from the sale of equipment.
The Partnership utilized these funds to reduce outstanding notes payable
by $696,325 and made cash distributions to partners of $1,279,735.
In our last Quarterly Report, March 31, 2001, the General Partner indicated
The Partnership purchased an interest, as an interim lender, in a short
term investment secured by an equipment lease obligation which yields
7.75% interest. The Partnership's portion of the short-term loan
participation has been reduced from $3,800,666 to $3,415,933 as of
June 30, 2001 and will continue to be reduced monthly and should be
paid in full by December 31, 2001.
The Partnership paid distributions of $.83 per Limited Partnership unit
on the 15th of April, May, and June 2001.
To date, the Partnership has made cash distributions to the Limited
Partners ranging from 77% to 99% 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 of CSA Income Fund IV Limited Partnership informed the
Limited Partners in the Partnership's year 2000 10-K and Annual Report that
the wind-up of the Partnership would begin in year 2001. Since the Partnership
commenced operations on April 18, 1990, it has been operating and paying monthly
distributions for over 10 years. Due to the size of the Partnership's remaining
portfolio the General Partner currently anticipate the wind-up will be completed
in mid-year 2002.
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GENERAL PARTNER'S DISCUSSION OF OPERATIONS (continued)
As indicated in the First Quarter 10-Q, 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 until the Capital Accounts of the Partners
are no longer negative. Therefore, certain gains on the disposition of
partnership assets were allocated during the first two quarters of 2001
to the General Partner to reduce its Capital Account negative balance.
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.
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CSA INCOME FUND IV LIMITED PARTNERSHIP
PART II
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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 2001.
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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: August 14, 2001
J. Frank Keohane
President
Principal Executive Officer
Date: August 14,2001
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer
Form 10-Q page 9