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, 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 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:
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PART I - FINANCIAL INFORMATION
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF
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(Unaudited)
September 30, December 31,
2001 2000
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Assets
Cash and cash equivalents $ 1,589,656 $ 3,488,610
Short term investment 2,760,784 -
Rentals receivable 144,609 206,146
Remarketing Receivable - 578,038
Accounts receivable - affiliates 18,449 20,585
Rental equipment, at cost 33,545,533 38,993,398
Less accumulated depreciation (30,748,109) (31,020,635)
Net rental equipment 2,797,424 7,972,763
Total assets $ 7,310,922 $ 12,266,142
Liabilities and partners' capital
Accrued management fees $ 24,981 $ 116,621
Accounts payable 28,448 32,800
Deferred income 157,831 127,957
Notes payable 357,109 2,284,571
Total liabilities 568,369 2,561,949
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 180,544 61,643
Cumulative cash distributions (470,159) (431,769)
(288,615) (369,126)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 6,861,153 6,102,487
Cumulative cash distributions (46,031,024) (42,230,207)
7,031,168 10,073,319
Total partners' capital 6,742,553 9,704,193
Total liabilities and
partners' capital $ 7,310,922 $ 12,266,142
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CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE
MONTH PERIODS ENDED SEPTEMBER 30, 2001 AND 2000
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Three Months Nine Months
September 30, September 30,
2001 2000 2001 2000
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Revenues:
Rental income $ 1,654,356 $ 2,369,015 $ 5,533,248 $7,678,348
Interest income 66,272 55,535 188,686 157,805
Gain on sale
of equipment 25,123 53,879 118,901 551,759
Net loss on
foreign currency (3,832) (19,131) (69,959) (35,532)
Total revenues 1,741,919 2,459,298 5,770,876 8,352,380
Costs and expenses:
Depreciation 1,309,727 1,963,066 4,272,854 6,259,236
Interest 8,563 90,980 68,513 389,443
Management fees 84,499 178,230 286,063 584,554
General and
administrative 84,167 111,782 265,879 340,400
Total expenses 1,486,956 2,344,058 4,893,309 7,573,633
Net income $ 254,963 $ 115,240 $ 877,567 $ 778,747
Net income allocation:
General Partner $ 25,123 $ 1,152 $ 118,901 $ 7,787
Limited Partners 229,840 114,088 758,666 770,960
$ 254,963 $ 115,240 $ 877,567 $ 778,747
Net income per
weighted average
Limited Partnership
Unit $ 0.46 $ 0.22 $ 1.50 $ 1.52
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
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2001 AND 2000
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Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
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Cash flows from
operations:
Cash received from
rental of equipment $1,717,213 $ 2,319,535 $ 5,556,836 $7,844,466
Cash paid for
operating and
management expenses (165,505) (291,819) (647,934) (925,144)
Interest paid (8,563) (100,101) (68,513) (401,005)
Interest received 66,272 55,535 188,686 157,805
Net cash from
operations 1,609,417 1,983,150 5,029,075 6,676,122
Cash flow from investments:
Short term investment 655,149 - (2,760,784) -
Purchase of equipment - - - (1,142,310)
Sale of equipment 297,065 460,942 1,599,424 1,955,590
Net cash from (used for)
investments 952,214 460,942 (1,161,360) 813,280
Cash flows from financing:
Advances to/from
affiliates - 74,827 - 135,100
Proceeds from notes
payable - - - 485,037
Repayment of notes
payable (131,429) (1,443,975) (1,927,462) (4,987,441)
Payment of cash
distributions (1,279,735) (1,194,420) (3,839,207) (3,241,994)
Net cash used
for financing (1,411,164) (2,563,568) (5,766,669) (7,609,298)
Net change in cash and
cash equivalents 1,150,467 (119,476) (1,898,954) (119,896)
Cash and cash equivalents
at beginning of
period 439,189 3,678,988 3,488,610 3,679,408
Cash and cash
equivalents
at end of period $1,589,656 $3,559,512 $1,589,656 $3,559,512
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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 September 30, 2001 and the results of operations and
cash flows for the three and nine month periods ended September 30, 2001
and September 30, 2000.
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CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $1,654,356 and $2,369,015 and net income was $254,963
and $115,240 for the quarters ended September 30, 2001 and 2000,
respectively. For the nine months ended September 30, 2001 and 2000,
rental income was $5,533,248 and $7,678,348, and net income was $877,567
and $778,747, respectively. The decrease in Rental income was 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 September 30, 2001, the Partnership generated
$1,906,482 in cash flow from operations and from the sale of equipment. The
Partnership utilized these funds to reduce outstanding notes payable by
$131,429 and made cash distributions to the partners of $1,279,735.
In the March 31, 2001, Quarterly Report, 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 $3,415,933 to $2,760,784 as of September 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 July 13th, August 15th, and September 14th, 2001.
To date, the Partnership has made cash distributions to the Limited
Partners ranging from 79% to 101% of their initial investment, depending
on when the Limited Partner 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 that the wind-up
of the Partnership will continue into calendar year 2002. As part of the
wind-up process the distribution percentage was increased from 10% to
12% effective with the November 15th distribution. It is not expected
that future distributions will be decreased from the current levels.
In light of recent economic developments with regards to the overall
Airline Industry, the General Partner is reviewing the Partnership's
residuals position on three (3) Jet Airplane engines make up a
substantial portion of the remaining residual value in the Partnership's
equipment portfolio and their valuation could materially impact the
wind-up distributions. However, it may be difficult to determine the
equipment residual value until such time as the assets are actually
sold.
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GENERAL PARTNER'S DISCUSSION OF OPERATIONS (continued)
As indicated in the previously filed 2001 Quarterly 10-Q's, 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 such time the Capital Accounts of the Partners are no longer
negative. Therefore, certain gains on the disposition of partnership
assets were allocated during the first three 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 third 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
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