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, 1997
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 JUNE 30, 1997 (UNAUDITED) AND
DECEMBER 31, 1996
(Unaudited)
June 30, December 31,
1997 1996
Assets
Cash and cash equivalents $ 763,616 $ 1,187,208
Rentals receivable 1,012,036 872,371
Value added tax deposits 80,527 80,511
Accounts receivable - affiliates 99,198 416,589
Remarketing receivable 5,752 153,817
Rental equipment, at cost 51,878,542 59,434,351
Less accumulated depreciation (28,418,521) (36,646,360)
Net rental equipment 23,460,021 22,787,991
Total assets $ 25,421,150 $ 25,498,487
Liabilities and partners' capital
Accrued management fees $ 138,679 $ 54,316
Accrued interest expense 61,605 69,655
Accounts payable 29,942 28,701
Accounts payable - affiliates - 1,032,127
Deferred income 60,751 74,545
Notes payable 8,818,204 7,573,033
Limited recourse notes payable 230,605 228,562
Total liabilities 9,339,786 9,060,939
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income (loss) 1,706 (15,208)
Cumulative cash distributions (308,062) (287,587)
(305,356) (301,795)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income (loss) 168,810 (1,505,671)
Cumulative cash distributions (29,983,129) (27,956,025)
16,386,720 16,739,343
Total partners' capital 16,081,364 16,437,548
Total liabilities and
partners' capital $ 25,421,150 $ 25,498,487
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1997 AND 1996
Three Months Six Months
June 30, June 30,
1997 1996 1997 1996
Revenues:
Rental income $ 2,620,603 $ 5,649,629 $ 5,535,905 $10,060,502
Interest income 12,637 8,093 73,028 56,958
Gain on sale
of equipment 67,534 43,228 431,682 341,902
Net gain (loss) on
foreign currency 10,521 (7,676) 18,895 (5,639)
Total revenues 2,711,295 5,693,274 6,059,510 10,453,723
Costs and expenses:
Depreciation and
amortization 1,303,200 4,448,005 3,367,966 7,904,799
Interest 154,154 252,963 274,326 571,998
Management fees 289,916 423,892 590,613 735,927
General and
administrative 63,298 53,436 135,210 140,787
Total expenses 1,810,568 5,178,296 4,368,115 9,353,511
Net income $ 900,727 $ 514,978 $ 1,691,395 $ 1,100,212
Net income allocation:
General Partner $ 9,007 $ 5,150 $ 16,914 $ 11,002
Limited Partners 891,720 509,828 1,674,481 1,089,210
$ 900,727 $ 514,978 $ 1,691,395 $ 1,100,212
Net income per
Limited Partnership
Unit $ 1.76 $ 1.01 $ 3.30 $ 2.15
Number of Limited
Partnership Units 506,776 506,776 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1997 AND 1996
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
Cash flows from
operations:
Cash received from
rental of
equipment $ 2,785,362 $ 4,475,271 $ 5,429,479 $ 8,775,500
Cash paid for
operating and
management expenses (300,847) (377,184) (640,219) (787,338)
Interest paid (162,204) (209,766) (282,376) (494,906)
Interest received 12,637 8,093 73,028 56,958
Net cash from
operations 2,334,948 3,896,414 4,579,912 7,550,214
Cash flow from investments:
Value added tax 1,967 243 (16) 9,019
Purchase of equipment(4,539,068) (5,570,090) (5,543,794)(10,682,964)
Sale of equipment 223,689 233,806 2,076,134 841,141
Net cash from (used
for) investments (4,313,412) (5,336,041) (3,467,676) (9,832,804)
Cash flows from financing:
Change in amounts due
to/from affiliates 663,539 1,883,289 (735,463) 1,571,023
Accounts payable
equipment purchase - 389,155 - 341,792
Proceeds from notes
payable 3,581,186 3,274,476 4,148,044 3,274,476
Repayment of notes
payable (1,062,180) (2,944,123) (2,900,830) (5,871,521)
Payment of cash
distributions (1,023,789) (1,023,791) (2,047,579) (2,047,580)
Net cash from (used
for) financing 2,158,756 1,579,006 (1,535,828) (2,731,810)
Net change in cash and
cash equivalents 180,292 139,379 (423,592) (5,014,400)
Cash and cash equivalents
at beginning of period 583,324 1,641,268 1,187,208 6,795,047
Cash and cash equivalents
at end of period $ 763,616 $ 1,780,647 $ 763,616 $ 1,780,647
CSA INCOME FUND IV LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS
The quarterly financial statements of the Partnership presented herein
are without audit except for the December 31, 1996 Balance Sheet
information. 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 31,1996.
In the General Partner's opinion, the unaudited financial statements
reflect all adjustments necessary to present fairly the financial
position of CSA Income Fund IV Limited Partnership as of June 30, 1997
and 1996 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
Rental income revenue was $2,620,603 and $5,649,629 and net income was
$900,727 and $514,978 for the quarters ended June 30, 1997 and 1996,
respectively. For the six months ended June 30, 1997 and 1996, rental
income was $5,535,905 and $10,060,502, and net income was $1,691,395
and $1,100,212, respectively. The rental income decrease was primarily
due to the expiration of a major portion of the TIC Leasing Corp.
portfolio acquired from Turner Broadcasting System Inc. Rental income
revenue also does not reflect addition investment in European Sales
Agency Agreements, the accounting for which provides neither rental
revenue nor debt service requirements for the transactions even though
the Partnership is the beneficial owner of the equipments' residual
value. The decrease in rental income revenue was more than offset by
lower levels of depreciation due to accelerated methods of depreciation
for certain equipment in prior years and the remarketing of fully
depreciation equipment.
The Partnership generated $6,656,046 from operations and sales of
equipment during the six months ended June 30, 1997. During this
period, the Partnership used these funds, funds received from debt
financings and cash on hand to acquire additional equipment of
$5,543,794, make payments on notes payable of $2,900,830 and make
distributions to partners of $2,047,579.
The Partnership paid distributions of $.67 per Limited Partnership unit
on the 15th of April, May, and June 1997. To date, the Partnership has
made cash distributions to the Limited Partners ranging from 47% to 69%
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 for as
long as the equipment continues to be leased.
Management, on a periodic basis, reviews the Partnership's projected
performance. 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
Partnership (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date:
/s/ J. Frank Keohane
President and
Principal Executive Officer
Date:
/s/ Richard P. Timmons
Controller
Principal Accounting and
Finance Officer
Form 10-Q - Page 8