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 September 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 fiscar 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) September 30, December 31, 1999 1998 Assets Cash and cash equivalents $ 4,172,193 $ 560,193 Rentals receivable 276,155 391,628 Accounts receivable - affiliates 280,252 524,059 Other receivable 21,629 218,343 Rental equipment, at cost 53,275,501 59,956,146 Less accumulated depreciation (33,511,242) (30,958,816) Net rental equipment 19,764,259 28,997,330 Total assets $ 24,514,488 $ 30,691,553 Liabilities and partners' capital Accrued management fees $ 69,060 $ 127,500 Accrued interest expense 17,124 32,965 Accounts payable 13,671 24,745 Deferred income 79,822 132,686 Notes payable 10,334,827 15,203,836 Total liabilities 10,514,504 15,521,732 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net income 49,999 38,662 Cumulative cash distributions (377,168) (354,134) (326,169) (314,472) Limited Partners (506,776 units): Capital contributions, net of offering costs 46,201,039 46,201,039 Cumulative net income 4,949,719 3,827,366 Cumulative cash distributions (36,824,605) (34,544,112) 14,326,153 15,484,293 Total partners' capital 13,999,984 15,169,821 Total liabilities and partners' capital $ 24,514,488 $ 30,691,553 CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998 Three Months Nine Months September 30, September 30, 1999 1998 1999 1998 Revenues: Rental income $ 3,223,689 $ 4,103,051 $11,310,065 $11,792,661 Interest income 61,886 17,233 117,733 57,794 Gain on sale of equipment 91,183 48,852 230,000 695,906 Net gain on foreign currency 20,974 1,704 13,125 17,147 Total revenues 3,397,732 4,170,840 11,670,923 12,563,508 Costs and expenses: Depreciation 2,582,507 2,746,065 8,567,472 7,943,493 Interest 242,621 404,981 839,221 1,237,610 Management fees 261,935 366,692 919,059 1,086,027 General and administrative 82,958 60,544 211,480 183,942 Total expenses 3,170,021 3,578,282 10,537,232 10,451,072 Net income $ 227,711 $ 592,558 $1,133,691 $ 2,112,436 Net income allocation: General Partner $ 2,277 $ 5,926 $ 11,337 $ 21,125 Limited Partners 225,434 586,632 1,122,354 2,091,311 $ 227,711 $ 592,558 $1,133,691 $ 2,112,436 Net income per weighted average Limited Partnership Unit $ 0.45 $ 1.16 $ 2.21 $ 4.13 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 NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998 Three Months Ended Nine Months Ended September 30, September 30, 1999 1998 1999 1998 Cash flows from operations: Cash received from rental of equipment $3,249,691 $ 4,146,867 $11,385,797 $11,876,680 Cash paid for operating and management expenses (362,550) (418,998) (1,251,344) (1,256,023) Interest paid (248,038) (409,867) (855,062) (1,251,894) Interest received 61,886 17,233 117,733 57,794 Net cash from operations 2,700,989 3,335,235 9,397,124 9,426,557 Cash flow from investments: Purchase of equipment (919,580) (2,276,516) (1,228,380) (6,365,039) Sale of equipment 1,540,847 211,445 2,320,695 1,435,018 Net cash used for investments 621,267 (2,065,071) 1,092,315 (4,930,021) Cash flows from financing: Advances to/from affiliates 20,341 1,113,211 295,097 937 Proceeds from notes payable 470,274 1,643,355 3,069,485 4,628,724 Repayment of notes payable (2,294,877) (2,817,779) (7,938,494) (7,565,060) Payment of cash distributions (767,844) (767,842) (2,303,527) (2,303,527) Net cash from (used for) financing (2,572,106) (829,055) (6,877,439) (5,238,926) Net change in cash and cash equivalents 750,150 441,109 3,612,000 (742,390) Cash and cash equivalents at beginning of period 3,422,043 563,267 560,193 1,746,766 Cash and cash equivalents at end of period $4,172,193 $1,004,376 $4,172,193 $1,004,376 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 September 30, 1999 and September 30, 1998 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 Total revenue was $3,397,732 and $4,170,840 and net income was $227,711 and $592,558 for the quarters ended September 30, 1999 and 1998, respectively. For the nine months ended September 30, 1999 and 1998, total revenue was $11,670,923 and $12,563,508, and net income was $1,133,691 and $2,112,436. The decreases in total revenue and net income were due primarily to anticipated lease expirations of a few large leases in the third quarter of 1999. The equipment from these leases is currently being remarketed, with a portion of the equipment sales completed in the third quarter. The Partnership generated cash flow of $11,717,819 from operations and sales of equipment during the nine months ended September 30, 1999. During this period, the Partnership used these funds, funds received from debt financings and cash on hand to acquire additional equipment of $1,228,380, make payments on notes payable of $7,938,494 and make distributions to partners of $2,303,527. The Partnership paid distributions of $.50 per Limited Partnership unit on the 15th of July, August, and September 1999. CSA Income Fund IV Limited Partnership increased the October distribution paid on November 15th from an annualized rate of 6% to 8%. The General Partner will continue to review the distribution percentage as the Partnership approaches wind-up. Future distributions will be based on the Partnership's current cash position, as well as, future cash flow projections. The General Partner intends to provide the Limited Partners with the optimal distribution rate throughout the remaining life of the Partnership. The General Partner anticipates beginning the wind-up process early next year, which may continue into calendar year 2002. To date, the Partnership has made cash distributions to the Limited Partners ranging from 61% to 83% 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 from equipment leasing and ultimate equipment disposition. 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 third 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: J. Frank Keohane President Principal Executive Officer Date: Richard P. Timmons Corporate Controller Principal Accounting and Finance Officer