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, 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)
June 30, December 31,
1998 1997
Assets
Cash and cash equivalents $ 563,267 $ 1,746,766
Rentals receivable 512,703 559,640
Value added tax receivable - 3,028
Accounts receivable - affiliates 1,408,107 292,804
Other receivable - 9,290
Rental equipment, at cost 61,698,042 59,318,040
Less accumulated depreciation (29,249,623) (25,193,487)
Net rental equipment 32,448,419 34,124,553
Total assets $ 34,932,496 $ 36,736,081
Liabilities and partners' capital
Accrued management fees $ 133,332 $ 103,996
Accrued interest expense 42,862 52,260
Accounts payable 19,431 43,058
Deferred income 20,711 42,889
Notes payable 19,161,430 20,923,341
Total liabilities 19,377,766 21,165,544
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income (loss) 27,154 11,955
Cumulative cash distributions (338,777) (323,420)
(310,623) (310,465)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income (loss) 2,688,098 1,183,419
Cumulative cash distributions (33,023,784) (31,503,456)
15,865,353 15,881,002
Total partners' capital 15,554,730 15,570,537
Total liabilities and
partners' capital $ 34,932,496 $ 36,736,081
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX
MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
Three Months Six Months
June 30, June 30,
1998 1997 1998 1997
Revenues:
Rental income $ 3,950,009 $ 2,620,603 $ 7,689,610 $ 5,535,905
Interest income 27,155 12,637 40,561 73,028
Gain on sale
of equipment 616,317 67,534 647,054 431,682
Net gain (loss) on
foreign currency (1,010) 10,521 15,443 18,895
Total revenues 4,592,471 2,711,295 8,392,668 6,059,510
Costs and expenses:
Depreciation 2,682,531 1,303,200 5,197,428 3,367,966
Interest 405,984 154,154 832,629 274,326
Management fees 361,906 289,916 719,335 590,613
General and
administrative 67,256 63,298 123,398 135,210
Total expenses 3,517,677 1,810,568 6,872,790 4,368,115
Net income $ 1,074,794 $ 900,727 $ 1,519,878 $ 1,691,395
Net income allocation:
General Partner $ 10,748 $ 9,007 $ 15,199 $ 16,914
Limited Partners 1,064,046 891,720 1,504,679 1,674,481
$ 1,074,794 $ 900,727 $ 1,519,878 $ 1,691,395
Net income per
weighted average
Limited Partnership
Unit $ 2.10 $ 1.76 $ 2.97 $ 3.30
Number of weighted
average 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, 1998 AND 1997
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Cash flows from
operations:
Cash received from
rental of
equipment $ 3,994,653 $ 2,785,362 $ 7,729,813 $ 5,429,479
Cash paid for
operating and
management expenses (424,886) (300,847) (837,025) (640,219)
Interest paid (410,744) (162,204) (842,027) (282,376)
Interest received 27,155 12,637 40,561 73,028
Net cash from
operations 3,186,178 2,334,948 6,091,322 4,579,912
Cash flow from investments:
Value added tax - 1,967 - (16)
Purchase of equipment (3,392,221) (4,539,068) (4,088,523) (5,543,794)
Sale of equipment 1,109,035 223,689 1,223,573 2,076,134
Net cash from (used
for) investments (2,283,186) (4,313,412) (2,864,950) (3,467,676)
Cash flows from financing:
Advances to/from
affiliates (779,289) 663,539 (1,112,275) (735,463)
Proceeds from notes
payable 2,664,067 3,581,186 2,985,369 4,148,044
Repayment of notes
payable (2,469,121) (1,062,180) (4,747,281) (2,900,830)
Payment of cash
distributions (767,842) (1,023,789) (1,535,684) (2,047,579)
Net cash used
for financing (1,352,185) 2,158,756 (4,409,871) (1,535,828)
Net change in cash and
cash equivalents (449,193) 180,292 (1,183,499) (423,592)
Cash and cash equivalents
at beginning of period 1,012,460 583,324 1,746,766 1,187,208
Cash and cash equivalents
at end of period $ 563,267 $ 763,616 $ 563,267 $ 763,616
CSA INCOME FUND IV LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS
The quarterly financial statements of the Partnership presented herein
are without audit except for balance sheet information as of December 31,
1997. 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 June 30, 1998 and December 31, 1997 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 was $3,950,009 and $2,620,603 and net income was $1,074,794
and $990,727 for the quarters ended June 30, 1998 and 1997, respectively.
For the six months ended June 30, 1998 and 1997, rental income was
$7,689,610 and $5,535,905, and net income was $1,519,878 and $1,691,395.
The increase in gross rental income was due primarily to the new equipment
leases added during 1998 and 1997. The increase in net income was primarily
due to the gain on sale of equipment recorded in the quarter ended June 30,
1998 of $616,317 as compared to $67,534 for the same period in 1997.
The Partnership generated $7,314,895 from operations and sales of
equipment during the six months ended June 30, 1998. During this period,
the Partnership used these funds, funds received from debt financings and
cash on hand to acquire additional equipment of $4,088,523, make payments
on notes payable of $4,747,281 and make distributions to partners of
$1,535,684.
The Partnership paid distributions of $.50 per Limited Partnership unit
on the 15th of April, May, and June 1998. To date, the Partnership has
made cash distributions to the Limited Partners ranging from 53% to 75%
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 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.
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 - There were no reports filed
during the second 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
Partnership (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date:
/s/ J. Frank Keohane
President
Principal Executive Officer
Date:
/s/ Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer