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, 1999
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,
1999 1998
Assets
Cash and cash equivalents $ 3,422,043 $ 560,193
Rentals receivable 322,873 391,628
Accounts receivable - affiliates 296,591 524,059
Other receivable 85,966 218,343
Rental equipment, at cost 58,751,585 59,956,146
Less accumulated depreciation (35,935,073) (30,958,816)
Net rental equipment 22,816,512 28,997,330
Total assets $ 26,943,985 $30,691,553
Liabilities and partners' capital
Accrued management fees $ 84,624 $ 127,500
Accrued interest expense 22,541 32,965
Accounts payable 15,760 24,745
Deferred income 121,514 132,686
Notes payable 12,159,430 15,203,836
Total liabilities 12,403,869 15,521,732
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 47,722 38,662
Cumulative cash distributions (369,489) (354,134)
(320,767) (314,472)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 4,724,285 3,827,366
Cumulative cash distributions (36,064,441) (34,544,112)
14,860,883 15,484,293
Total partners' capital 14,540,116 15,169,821
Total liabilities and
partners' capital $ 26,943,985 $ 30,691,553
CSA INCOME FUND IV LIMITED PARTNERSHIP
UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX
MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
Three Months Six Months
June 30, June 30,
1999 1998 1999 1998
Revenues:
Rental income $ 4,010,129 $ 3,950,009 $ 8,086,376 $ 7,689,610
Interest income 45,018 27,155 55,847 40,561
Gain on sale
of equipment 104,907 616,317 138,816 647,054
Net gain (loss) on
foreign currency ( 9,956) (1,010) (7,849) 15,443
Total revenues 4,150,098 4,592,471 8,273,190 8,392,668
Costs and expenses:
Depreciation 3,005,440 2,682,531 5,984,964 5,197,428
Interest 287,634 405,984 596,600 832,629
Management fees 309,491 361,906 657,124 719,335
General and
administrative 59,414 67,256 128,523 123,398
Total expenses 3,661,979 3,517,677 7,367,211 6,872,790
Net income $ 488,119 $1,074,794 $ 905,979 $ 1,519,878
Net income allocation:
General Partner $ 4,881 $ 10,748 $ 9,060 $ 15,199
Limited Partners 483,238 1,064,046 896,919 1,504,679
$ 488,119 $1,074,794 $ 905,979 $ 1,519,878
Net income per
weighted average
Limited Partnership
Unit $ 0.95 $ 2.10 $ 1.77 $ 2.97
Number of weighted
average Limited
Partnership Units 506,776 506,776 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP
UNAUDITED STATEMENTS OF CASH FLOWS FOR THE THREE
AND SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Cash flows from
operations:
Cash received from
rental of
equipment $ 4,189,489 $ 3,994,653 $ 8,136,106 $ 7,729,813
Cash paid for
operating and
management expenses (411,608) (424,886) (888,794) (837,025)
Interest paid (293,113) (410,744) (607,024) (842,027)
Interest received 45,018 27,155 55,847 40,561
Net cash from
operations 3,529,786 3,186,178 6,696,135 6,091,322
Cash flow from investments:
Purchase of equipment (308,800) (3,392,221) (308,800) (4,088,523)
Sale of equipment 229,171 1,109,035 779,848 1,223,573
Net cash from (used
for) investments (79,629) (2,283,186) 471,048 (2,864,950)
Cash flows from financing:
Advances to/from
affiliates 23,478 (779,289) 274,756 (1,112,275)
Proceeds from notes
payable 190,153 2,664,067 2,599,211 2,985,369
Repayment of notes
payable (2,732,487) (2,469,121) (5,643,617) (4,747,281)
Payment of cash
distributions (767,842) (767,842) (1,535,683) (1,535,684)
Net cash used
for financing (3,286,698) (1,352,185) (4,305,333) (4,409,871)
Net change in cash and
cash equivalents 163,459 (449,193) 2,861,850 (1,183,499)
Cash and cash equivalents
at beginning of period 3,258,584 1,012,460 560,193 1,746,766
Cash and cash equivalents
at end of period $3,422,043 $ 563,267 $3,422,043 $ 563,267
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 31,1998.
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, 1998.
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, 1999 and June 30, 1998 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 $4,010,129 and $3,950,009 and net income was $488,119 and
$1,074,794 for the quarters ended June 30, 1999 and 1998, respectively. For
the six months ended June 30, 1999 and 1998, rental income was $8,086,376 and
$7,689,610, and net income was $905,979 and $1,519,878. The increase in
rental income was due primarily to the new equipment leases added during
1998.The decrease in net income was primarily due to the gain on sale of
equipment recorded in the quarter ended June 30, 1999 of $104,907 as
compared to $616,317 for the same period in 1998.
The Partnership generated $7,475,983 from operations and sales of equipment
during the six months ended June 30, 1999. During this period, the Partnership
used these funds, funds received from debt financings and cash on hand to
acquire additional equipment of $308,800, reduce notes payable of $5,643,617
and make distributions to partners of $1,535,683.
The Partnership paid distributions of $.50 per Limited Partnership unit on the
15th of April, May, and June 1999. To date, the Partnership has made cash
distributions to the Limited Partners ranging from 59% to 81% 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 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 the second quarter of 1999.
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/a/J. Frank Keohane
President
Principal Executive Officer
Date:
S/a/Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer