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, 2002
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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March 31, December 31,
2002 2001
Unaudited
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Assets
Cash and cash equivalents $ 3,396,702 $ 1,999,033
Short term investment - 2,124,290
Rentals receivable 43,257 195,805
Accounts receivable - affiliates - 3,950
Remarketing receivable 63,023 -
Rental equipment, at cost 17,170,222 18,678,320
Less accumulated depreciation (16,476,500) (17,550,682)
Net rental equipment 693,722 1,127,638
Total assets $ 4,196,704 $ 5,450,716
Liabilities and partners' capital
Accrued management fees $ 20,097 $ 36,250
Accounts payable and accrued expenses 6,187 16,000
Deferred income 56,732 88,784
Notes Payable 279,695 316,992
Total liabilities 362,711 458,026
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 254,162 177,549
Cumulative cash distributions (500,022) (484,665)
(244,860) (306,116)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 6,865,032 6,564,657
Cumulative cash distributions (48,987,218) (47,466,890)
4,078,853 5,298,806
Total partners' capital 3,833,993 4,992,690
Total liabilities and
Partners' capital $ 4,196,704 $ 5,450,716
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CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
Unaudited Quarters Ended March 31,
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2002 2001
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Revenues:
Rental income $ 655,080 $ 2,131,502
Interest income 58,707 34,741
Gain on sale of equipment 76,613 64,949
Net loss on foreign
currency transactions (16,984) (68,306)
Total revenues 773,416 2,162,886
Costs and expenses:
Depreciation 275,242 1,719,803
Interest 5,215 42,213
Management fees 32,933 111,414
General and administrative 83,038 93,268
Total expenses 396,428 1,966,698
Net income $ 376,988 $ 196,188
Net income allocation:
General Partner $ 76,613 $ 64,949
Limited Partners 300,375 131,239
$ 376,988 $ 196,188
Net income per weighted average
Limited Partnership Unit $ .59 $ .26
Number of weighted average
Limited Partnership Units 506,776 506,776
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CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
Unaudited Quarters Ended
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March 31, March 31,
2002 2001
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Cash flows from operations:
Cash received from rental
of equipment $ 762,542 $ 2,086,926
Cash paid for operating and
management expenses (141,937) (280,004)
Interest paid (5,215) (42,213)
Interest received 58,707 34,741
Net cash from operations 674,097 1,799,450
Cash flow from investments:
Short term investment 2,124,290 (3,500,000)
Sale of equipment 172,264 763,721
Net Cash provided by
(used for) investments 2,296,554 (2,736,279)
Cash flows from financing:
Repayment of notes payable (37,297) (1,099,708)
Payment of cash distributions (1,535,685) (1,279,737)
Net cash used for
financing (1,572,982) (2,379,445)
Net change in cash
and cash equivalents 1,397,669 (3,316,274)
Cash and cash equivalents
at beginning of period 1,999,033 3,488,610
Cash and cash equivalents
at end of period $ 3,396,702 $ 172,336
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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,
2001.
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, 2002 and the results of operations and cash
flows for the three month periods ended March 31, 2002 and March 31, 2001.
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CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $655,080 and $2,131,502 and net income was $376,988
and $196,188 for the quarters ended March 31, 2002 and March 31, 2001,
respectively. The decrease in rental income was primarily due to lease
expirations as the partnership approaches wind-up. The increase in net
income was primarily due to lower depreciation expense recorded
in the quarter ended March 31, 2002 of $275,242 as compared to
$1,719,803 for the same period in 2001. The depreciation expense is
significantly lower in 2002 primarily due to a majority of the
remaining leases in the Partnership's portfolio being nearly
all fully depreciated.
The Partnership generated $846,361 in cash flow from operations and from the
sale of equipment during the three months ended March 31, 2002. The
Partnership utilized these funds and cash on hand to reduce outstanding notes
payable by $37,297 and made cash distributions to partners of $1,535,685.
During the year ended December 31, 2001, the Partnership purchased an
interest, as an interim lender, in a short-term investment secured by an
equipment lease obligation yielding 7.75% interest. The Partnership's
portion of the short-term loan participation was repaid in full during the
quarter ended March 31, 2002.
The Partnership paid distributions of $1.00 per limited partnership unit on
the 15th of January, February and March 2002.
To date, the Partnership has made cash distributions to the Limited Partners
ranging from 85% to 107% 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.
As stated in the Partnership 2001 Annual Report, the General Partner began
the wind-up of the Partnership in year 2001. The wind-up is currently
anticipated to be completed during 2002.
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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.
Therefore, certain gains on the disposition of partnership
assets were allocated during the first quarter of 2002 and 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 - There were no reports filed during the first
quarter of 2002.
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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:
J. Frank Keohane
President
Principal Executive Officer
Date:
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer