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, 1998
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
STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited)
March 31, December 31,
1998 1997
Assets
Cash and cash
equivalents $ 1,012,460 $ 1,746,766
Rentals receivable 565,143 559,640
Value added tax
receivable 3,028 3,028
Accounts receivable -
affiliates 625,790 292,804
Other receivable 5,627 9,290
Rental equipment,
at cost 59,437,134 59,318,040
Less accumulated
depreciation (27,211,314) (25,193,487)
Net rental equipment 32,225,820 34,124,553
Total assets $ 34,437,868 $ 36,736,081
Liabilities and
partners' capital
Accrued management
fees $ 106,426 $ 103,996
Accrued interest
expense 47,622 52,260
Accounts payable and
accrued expenses 42,060 43,058
Deferred income 27,498 42,889
Notes Payable 18,966,483 20,923,341
Total liabilities 19,190,089 21,165,544
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 16,406 11,955
Cumulative cash
distributions (331,098) (323,420)
(313,692) (310,465)
Limited Partners
(506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 1,624,052 1,183,419
Cumulative cash
distributions (32,263,620) (31,503,456)
15,561,471 15,881,002
Total partners' capital 15,247,779 15,570,537
Total liabilities and
partners' capital $ 34,437,868 $ 36,736,081
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
Quarters Ended March 31,
(Unaudited)
1998 1997
Revenues:
Rental income $ 3,739,601 $ 2,915,302
Interest income 13,406 60,391
Gain on sale of equipment 30,737 364,148
Net gain on foreign
currency transactions 16,453 8,374
Total revenues 3,800,197 3,348,215
Costs and expenses:
Depreciation 2,514,897 2,064,766
Interest 426,645 120,172
Management fees 357,429 300,697
General and administrative 56,142 71,912
Total expenses 3,355,113 2,557,547
Net income $ 445,084 $ 790,668
Net income allocation:
General Partner $ 4,451 $ 7,907
Limited Partners 440,633 782,761
$ 445,084 $ 790,668
Net income per
weighted average
Limited Partnership Unit $ .87 $ 1.54
Number of weighted average
Limited Partnership Units 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
Quarter Ended March 31,
(Unaudited)
1998 1997
Cash flows from operations:
Cash received from rental
of equipment $ 3,735,160 $ 2,644,117
Cash paid for operating and
management expenses (412,139) (339,372)
Interest paid (431,283) (120,172)
Interest received 13,406 60,391
Net cash from operations 2,905,144 2,244,964
Cash flow from investments:
Value added tax - (1,983)
Purchase of equipment (696,302) (1,004,726)
Sale of equipment 114,538 1,852,445
Net cash provided by
(used for) investments (581,764) 845,736
Cash flows from financing:
Advances to/from affiliates (332,986) (1,399,002)
Proceeds from notes payable 321,302 566,858
Repayment of notes payable (2,278,160) (1,838,650)
Payment of cash distributions (767,842) (1,023,790)
Net cash used for
financing (3,057,686) (3,694,584)
Net change in cash
and cash equivalents (734,306) (603,884)
Cash and cash equivalents
at beginning of period 1,746,766 1,187,208
Cash and cash equivalents
at end of period $ 1,012,460 $ 583,324
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 31,1997.
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, 1998 and March 31,
1997 and the results of operations and cash flows for
the periods presented therein.
CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Gross rental income was $3,739,601 and $2,915,302 and
net income was $445,084 and $790,668 for the quarters
ended March 31, 1998 and 1997, respectively. The
increase in gross rental income was due primarily to the
new equipment leases added during 1997. The decrease in
net income was primarily due to the lower gain on sale
of equipment recorded in the quarter ended March 31,
1998 of $30,737 as compared to $364,148 for the same
period in 1997.
The Partnership generated $3,019,682 in cash flow from
operations and from the sale of equipment during the
three months ended March 31, 1998. This cash along with
cash on hand was used to purchase equipment, repay debt
and pay cash distributions to the partners. The
Partnership acquired $696,302 in additional equipment,
repaid $2,278,160 of notes payable and made cash
distributions to partners of $767,842.
The Partnership paid distributions of $.50 per limited
Partnership unit on the 15th of January, February and
March 1998.
To date, the Partnership has made cash distributions to
the Limited Partners ranging from 52% to 74% 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, reviews the Partnership's projected
performance on a periodic basis. Based on that analysis
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 - Rxhibit 27 Financial Data
Schedule
(b)Reports on Form 8-K - There were no reports
filed during the first quarter of 1998.
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: 05/15/98 /s/ J. Frank Keohane
J. Frank Keohane
President
Principal Executive
Officer
Date: 05/15/98 /s/ Richard P. Timmons
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer
Form 10-Q - Page 8