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, 1996
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
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 1996 (UNAUDITED) AND
DECEMBER 31, 1995
______________________________________________________________________
(Unaudited)
March 31, 1996 December 31, 1995
Assets
Cash and cash equivalents $ 1,641,268 $ 6,795,047
Rents receivable 376,033 369,887
Value added tax receivable 81,137 89,913
Accounts receivable - affiliates 838,978 611,953
Remarketing receivable - 31,160
Rental equipment, at cost 76,738,294 77,469,983
Less accumulated depreciation (49,488,645) (51,633,820)
Net rental equipment 27,249,649 25,836,163
Total assets $ 30,187,065 $ 33,734,123
Liabilities and partners' capital
Accrued management fees $ 29,483 $ 40,781
Accrued interest expense 81,568 113,562
Accounts payable and accrued expenses 20,706 28,271
Accounts payable-equipment purchases 37,328 84,691
Accounts payable - affiliates - 85,240
Deferred income 138,767 226,089
Sales tax payable 17,791 9,697
Notes payable 10,968,421 13,804,399
Limited recourse notes payable 571,064 580,901
Total liabilities 11,865,128 14,973,631
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net loss (27,078) (32,930)
Cumulative cash distributions (256,872) (246,635)
(282,950) (278,565)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net loss (2,680,783) (3,260,165)
Cumulative cash distributions (24,915,369) (23,901,817)
18,604,887 19,039,057
Total partners' capital 18,321,937 18,760,492
Total liabilities and
partners' capital $ 30,187,065 $ 33,734,123
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED
MARCH 31, 1996 AND 1995
______________________________________________________________________
1996 1995
Revenues:
Rental income $ 4,410,873 $ 5,675,740
Interest income 48,865 88,412
Gain on sale of equipment 298,674 58,931
Net gain on foreign currency
transactions 2,037 43,261
Total revenues 4,760,449 5,866,344
Costs and expenses:
Depreciation and amortization 3,456,794 4,772,013
Interest 319,035 521,442
Management fees 312,035 330,250
General and administrative 87,351 100,450
Total expenses 4,175,215 5,724,155
Net income $ 585,234 $ 142,189
Net income allocation:
General Partner $ 5,852 $ 1,422
Limited Partners 579,382 140,767
$ 585,234 $ 142,189
Net income per weighted average
Limited Partnership Unit $ 1.14 $ 0.28
Number of weighted average
Limited Partnership Units 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED
MARCH 31, 1996 AND 1995
______________________________________________________________________
1996 1995
Cash flows from operations:
Cash received from rental
of equipment $ 3,906,380 $ 6,311,345
Cash paid for operating and
management expenses (410,154) (382,701)
Interest paid (285,140) (469,615)
Interest received 48,865 88,412
Net cash from operations 3,259,951 5,547,441
Cash flow from investments:
Value added tax 8,776 (104,160)
Purchase of equipment (5,112,874) (1,155,436)
Sale of equipment 607,335 2,753,419
Net cash provided by
(used for) investments (4,496,763) 1,493,823
Cash flows from financing:
Equipment purchases payable (47,363) (419,903)
Proceeds from notes payable - 2,746,765
Repayment of notes payable (2,845,815) (3,092,908)
Payment of cash distributions (1,023,789) (1,023,790)
Net cash used for
financing (3,916,967) (1,789,836)
Net change in cash
and cash equivalents (5,153,779) 5,251,428
Cash and cash equivalents
at beginning of period 6,795,047 1,967,270
Cash and cash equivalents
at end of period $ 1,641,268 $ 7,218,698
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, 1995.
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, 1996 and December 31, 1995 and
the results of operations and cash flows for the periods presented
therein.
CSA INCOME FUND IV LIMITED PARTNERSHIP
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
______________________________________________________________________
Gross rental income was $4,410,873 and $5,675,740 and net income was
$585,234 and $142,189 for the quarters ended March 31, 1996 and 1995,
respectively. The decrease in rental income is due to expiring leases
and the sale of equipment from the Partnership's portfolio as well as
additional investment in sales agency agreements which provide for
equity in residual values of equipment but provide no current rental
revenue or debt service requirements to the Partnership. The decrease
in revenue was more than offset by lower levels of depreciation which
was the result of the use of accelerated methods of depreciation for
certain equipment in prior years and the remarketing of fully-
depreciated equipment.
The Partnership generated $3,867,286 in cash flow from operations and
from the sale of equipment during the three months ended
March 31, 1996. This cash along with cash on hand was used to
purchase equipment, repay debt and pay cash distributions to the
partners. The Partnership acquired $5,112,874 of additional
equipment, repaid $2,845,815 of notes payable and made cash
distributions to partners of $1,023,789.
The Partnership paid distributions of $.67 per limited partnership
unit on the 15th of January, February and March 1996. To date, the
Partnership has made cash distributions to the Limited Partners
ranging from 37% to 59% 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 long as the equipment continues to be
leased.
Management, on a periodic basis, reviews the Partnership's projected
performance. Though the most recent review indicates that revenues
generated by the Partnership from certain lease renewals and
remarketings after the initial lease terms have been lower than
anticipated, as a result of more rapid obsolescence in high technology
equipment, based on an analysis of the remaining assets in the
Partnership's portfolio, the General Partner presently estimates that
the continued cash distributions will return the entire initial
investment of the Limited Partners and a return thereon. However, the
magnitude of the return may be lower than originally anticipated at
the inception of the Partnership. The General Partner will continue to
report on the Limited Partners' return of investment with each cash
distribution and the General Partner intends to pursue additional
lease investment opportunities to increase the Partnership's
distributions.
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
this quarter.
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: 5/14/96 /s/ J. Frank Keohane
J. Frank Keohane
President and
Principal Executive Officer
Date: 5/14/96 /s/ Richard F. Sullivan
Richard F. Sullivan
Vice President,
Principal Accounting and
Finance Officer