Form 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|X| Quarterly Report Pursuant to Section 13
or 15(d) of the Securities Exchange Act
of 1934. For the quarterly period ended
September 30, 2002
|_| 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 000-21552
ATEL Cash Distribution Fund IV, L.P.
(Exact name of registrant as specified in its charter)
California 94-3145429
---------- ----------
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415)989-8800
Indicate by a 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 for 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 |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
1
Part I FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS.
2
ATEL CASH DISTRIBUTION FUND IV, L.P.
BALANCE SHEET
SEPTEMBER 30, 2002
(Unaudited)
ASSETS
Cash and cash equivalents $1,938,955
Accounts receivable, net of allowance for doubtful
accounts of $24,383 102,587
Investment in leases 1,244,349
---------------
$3,285,891
===============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 98,656
Unearned operating lease income 80,138
---------------
Total liabilities 178,794
Partners' capital:
General Partner 233,846
Limited Partners 2,873,251
---------------
Total partners' capital 3,107,097
---------------
$3,285,891
===============
See accompanying notes.
3
ATEL CASH DISTRIBUTION FUND IV, L.P.
INCOME STATEMENTS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 2002 AND 2001
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
Revenues: 2002 2001 2002 2001
---- ---- ---- ----
Lease revenues:
Operating $ 375,883 $ 491,177 $ 72,732 $ 176,164
Direct financing 632,939 507,781 207,512 219,166
Gain on sales of assets 138,108 19,149 127,977 21,065
Interest income 9,489 19,718 2,536 6,119
Other 11,903 1,193 11,610 11
----------------- ----------------- ----------------- -----------------
1,168,322 1,039,018 422,367 422,525
Expenses:
Cost reimbursements to General Partner 232,221 445,163 96,555 193,879
Depreciation and amortization 339,619 360,895 96,595 111,517
Other 72,920 82,065 17,924 20,797
Interest 10,431 31,749 - 7,898
Professional fees 30,676 26,197 1,036 122
----------------- ----------------- ----------------- -----------------
685,867 946,069 212,110 334,213
----------------- ----------------- ----------------- -----------------
Net income $ 482,455 $ 92,949 $ 210,257 $ 88,312
================= ================= ================= =================
Net income:
General Partner $ 4,825 $ 929 $ 2,103 $ 883
Limited Partners 477,630 92,020 208,154 87,429
----------------- ----------------- ----------------- -----------------
$ 482,455 $ 92,949 $ 210,257 $ 88,312
================= ================= ================= =================
Net income per Limited Partnership unit $0.06 $0.01 $0.03 $0.01
Weighted average number of units outstanding 7,487,350 7,487,350 7,487,350 7,487,350
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
NINE MONTH PERIOD ENDED
SEPTEMBER 30, 2002
(Unaudited)
Limited Partners General
Units Amount Partner Total
Balance December 31, 2001 7,487,350 $ 3,331,557 $ 229,021 $3,560,578
Distributions to limited partners (935,936) - (935,936)
Net income 477,630 4,825 482,455
----------------- ----------------- ----------------- -----------------
Balance September 30, 2002 7,487,350 $ 2,873,251 $ 233,846 $3,107,097
================= ================= ================= =================
See accompanying notes.
4
ATEL CASH DISTRIBUTION FUND IV, L.P.
STATEMENTS OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 2002 AND 2001
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
2002 2001 2002 2001
---- ---- ---- ----
Operating activities:
Net income $ 482,455 $ 92,949 $ 210,257 $ 88,312
Adjustments to reconcile net income to
net cash provided by operations:
Depreciation and amortization 339,619 360,895 96,595 111,517
Gain on sales of assets (138,108) (19,149) (127,977) (21,065)
Changes in operating assets and liabilities:
Accounts receivable 90,666 2,033,678 28,671 48,055
Bank overdrafts - (230,243) - -
Accounts payable, General Partner (48,454) (32,722) - -
Accounts payable, other (10,583) (51,970) (6,151) (79,396)
Accrued interest (2,123) (2,949) (1,460) (397)
Unearned operating lease income 36,919 (10,298) 80,138 (37,915)
----------------- ----------------- ----------------- -----------------
Net cash from operations 750,391 2,140,191 280,073 109,111
----------------- ----------------- ----------------- -----------------
Investing activities:
Proceeds from sales of lease assets 1,102,822 166,285 701,782 (14,505)
Reduction of net investment in direct financing
leases 46,562 331,859 18,989 90,637
----------------- ----------------- ----------------- -----------------
Net cash provided by investing activities 1,149,384 498,144 720,771 76,132
----------------- ----------------- ----------------- -----------------
Financing activities:
Distributions to limited partners (935,936) (1,331,182) - -
Repayment of non-recourse debt (294,396) (461,975) (202,463) (54,826)
----------------- ----------------- ----------------- -----------------
Net cash used in financing activities (1,230,332) (1,793,157) (202,463) (54,826)
----------------- ----------------- ----------------- -----------------
Net increase in cash and cash
equivalents 669,443 845,178 798,381 130,417
Cash and cash equivalents at beginning of
period 1,269,512 55,445 1,140,574 770,206
----------------- ----------------- ----------------- -----------------
Cash and cash equivalents at end of period $1,938,955 $ 900,623 $1,938,955 $ 900,623
================= ================= ================= =================
Supplemental disclosures of cash flow
information:
Cash paid for interest $ 12,554 $ 34,698 $ 1,460 $ 8,295
================= ================= ================= =================
See accompanying notes.
5
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
(Unaudited)
1. Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Investment in leases:
The Partnership's investment in leases consists of the following:
Depreciation
Expense or Reclass-
December 31, Amortization ifications & September 30,
2001 of Leases Dispositions 2002
---- --------- - ------------- ----
Net investment in operating leases $1,835,915 $ (331,739) $ (930,938) $ 573,238
Net investment in direct financing leases 1,325,813 (46,562) (33,776) 1,245,475
Initial direct costs, net of accumulated
amortization of $104,778 in 2002 and $111,629
in 2001 18,387 (7,880) - 10,507
Reserve for losses (584,871) - - (584,871)
----------------- ----------------- ----------------- -----------------
$2,595,244 $ (386,181) $ (964,714) $1,244,349
================= ================= ================= =================
At September 30, 2002, equipment on operating leases consists of the following:
Balance Balance
December 31, Acquisitions, Dispositions & Reclassifications September 30,
----------------------------------------------
2001 1st Quarter 2nd Quarter 3rd Quarter 2002
---- ----------- ----------- ----------- ----
Transportation $ 2,810,685 $ (615,914) $ (109,859) $ (141,657) $1,943,255
Manufacturing 457,670 - - - 457,670
Materials handling 318,012 - - - 318,012
Construction equipment 1,756,195 - - (1,519,738) 236,457
------------------- ----------------- ----------------- ----------------- -----------------
5,342,562 (615,914) (109,859) (1,661,395) 2,955,394
Accumulated depreciation (3,506,647) 132,240 (35,146) 1,027,397 (2,382,156)
------------------- ----------------- ----------------- ----------------- -----------------
$ 1,835,915 $ (483,674) $ (145,005) $ (633,998) $ 573,238
=================== ================= ================= ================= =================
All of the equipment on operating leases was acquired during 1992, 1993, 1994,
1995 and 1996.
6
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2. Investment in lease assets (continued):
At September 30, 2002, the aggregate amounts of future minimum lease payments
are as follows:
Direct
Operating Financing Total
Three months ending December 31, 2002 $ 88,648 $ 226,500 $ 315,148
Year ending December 31, 2003 418,017 906,000 1,324,017
2004 - 595,199 595,199
----------------- ----------------- -----------------
$ 506,665 $1,727,699 $2,234,364
================= ================= =================
4. Related party transactions:
The terms of the Agreement of Limited Partnership provide that the General
Partners and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Partnership.
The General Partners and/or Affiliates earned the following fees and
commissions, pursuant to the Agreement of Limited Partnership as follows:
2002 2001
---- ----
Cost reimbursements to General Partner $ 232,221 $ 445,163
================= =================
5. Partner's capital:
The Fund is authorized to issue up to 7,500,000 Units of Limited Partnership
interest in addition to the Initial Limited Partners.
The Fund's Net Profits, Net Losses and Tax Credits are to be allocated 99% to
the Limited Partners and 1% to the General Partner.
As more fully described in the Partnership Agreement, available Cash from
Operations and Cash from Sales or Refinancing shall be distributed as follows:
First, 5% of Distributions of Cash from Operations to the General Partner as
Incentive Management Fees.
Second, the balance to the Limited Partners until the Limited Partners have
received aggregate Distributions, as defined, in an amount equal to their
Original Invested Capital, as defined, plus a 10% per annum cumulative
(compounded daily) return on their Adjusted Invested Capital, as defined.
Third, the General Partner will receive as Incentive Management Fees, the
following: (A) 10% of remaining Cash from Operations, as defined, (B) 15% of
remaining Cash from Sales or Refinancing, as defined.
Fourth, the balance to the Limited Partners.
7
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Capital Resources and Liquidity
Our primary sources of liquidity during the first nine months of 2002 and 2001
were operating and direct finance lease rents. Liquidity will vary in the
future, increasing to the extent cash flows from leases exceed expenses, and
decreasing as distributions are made to the Limited Partners and to the extent
expenses exceed cash flows from leases.
We currently have available adequate reserves to meet contingencies, but in the
event those reserves were found to be inadequate, we would likely be in a
position to borrow against our current portfolio to meet such requirements. We
envision no such requirements for operating purposes.
As of September 30, 2002, we had borrowed approximately $38,342,000, all of
which has been repaid. Borrowings are to be non-recourse to us, that is, the
only recourse of the lender will be to the equipment or corresponding lease
acquired or secured with the loan proceeds. We do not expect that there will be
additional borrowings in the future.
As of September 30, 2002, we have made no commitments of capital.
If inflation in the general economy becomes significant, it may affect us in
that the residual (resale) values and rates on re-leases of our leased assets
may increase as the costs of similar assets increase. However, our revenues from
existing leases would not increase, as such rates are generally fixed for the
terms of the leases without adjustment for inflation.
If interest rates increase significantly, the lease rates that we can obtain on
future leases will be expected to increase as the cost of capital is a
significant factor in the pricing of lease financing. Leases already in place,
for the most part, would not be affected by changes in interest rates.
2002 vs. 2001:
Nine months:
During the first nine months of 2002 and 2001, our primary source of operating
cash flows was operating and direct financing lease revenues. Our total lease
revenues increased by $9,864 in 2002 compared to 2001.
In 2001, direct financing lease payments were our most important source of
financing cash flows. In 2002, the most significant source cash flows from
investing activities was the proceeds from the sales of assets. Our proceeds
from asset sales are not comparable to prior periods nor are they expected to be
comparable to future periods. Direct financing lease rents decreased by $285,297
compared to 2001.
We had no sources of cash from financing activities in 2002 or in 2001. The cash
we used to repay non-recourse debt has decreased due to scheduled debt
reductions. We changed the frequency of our distributions to the Limited
Partners effective January 1, 2001. Previously, most of the Limited Partners
received distributions on a monthly basis. The rest of the Limited Partners
received distributions on a quarterly basis. We are now making distributions on
an annual basis based on the amount of cash which becomes available for that
purpose. As a result, the amounts of cash distributed to the Limited Partners
has decreased in 2002 compared to the amount in 2001.
Three months:
Our primary source of cash from operations for the third quarter was lease
rents. These lease rents have decreased from the prior year as a result of asset
sales during the preceding twelve months.
In 2002, our largest source of cash from investing activities was proceeds from
the sales of lease assets. Our primary source of cash flows from financing
activities in 2001 was rents from direct financing leases.
We had no sources of cash from financing activities in 2002 or in 2001.
Repayments of debt decreased for the same reasons as noted above for the nine
month period. We made no distributions to the limited partners in the third
quarters of 2002 or 2001.
Results of Operations
Our operations in 2002 resulted in net income of $482,4552 for the nine month
period and $210,257 for the three month period. In 2001, our operations resulted
in net income of $92,949 for the nine month period and $88,312 for the three
month period.
8
2002 vs. 2001:
Our operating lease revenues have decreased due to sales and reclassifications
of leased assets during the last twelve months. Direct financing lease revenues
increased as a larger portion of the lease rents were included in income , as
opposed to being accounted for as a recovery of the net investment in direct
finance leases.
Depreciation expense is directly related to the amounts of operating lease
assets and has decreased from 2001 to 2002 as a result of sales of operating
lease assets over the last year.
Internal Controls
As of September 30, 2002, an evaluation was performed under the supervision and
with the participation of the Partnership's management, including the CEO and
CFO of the General Partner, of the effectiveness of the design and operation of
the Partnership's disclosure controls and procedures. Based on that evaluation,
the Partnership's management, including the CEO and CFO of the General Partner,
concluded that the Partnership's disclosure controls and procedures were
effective as of September 30, 2002. There have been no significant changes in
the Partnership's internal controls or in other factors that could significantly
affect internal controls subsequent to September 30, 2002.
PART II OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
No material legal proceedings are currently pending against the Partnership or
against any of its assets.
On December 31, 1997, Quaker Coal Company (the Debtor), one of the Partnership's
lessees, requested a moratorium on lease payments from January through March
1998. No lease payments were made by the lessee through June 1998, and as a
result, the General Partner declared the lease in default. Subsequently, the
lessee cured the outstanding payments and eventually satisfied substantially all
lease payments due under the lease; however, the General Partner refused to
waive the default and insisted on contractual damages. The General Partner filed
a suit against the lessee for its contractual damages in the U.S. District Court
of Northern California (the "Court"). On June 16, 2000, the lessee filed for
protection under Chapter 11 of the U.S. Bankruptcy Code. The amounts of these
damages have not been included in the financial statements included in Part I,
Item 1 of this report.
The Partnership obtained a stipulation for relief from the automatic bankruptcy
stay to allow the Court to issue its ruling, and filed a request to participate
on the Official Committee of Unsecured Creditors in the bankruptcy proceedings.
The Partnership succeeded upon securing the return of its equipment, which has
been liquidated. The Court issued a ruling on March 4, 2001, denying the
Partnership's claim for damages. The Debtor subsequently filed a claim against
the Partnership, for reimbursement of its legal expenses. The General Partner
believes the Court's decision is erroneous as a matter law, and has filed an
appeal of the decision in the U.S. District Court of Appeals.
The Debtor filed a plan of reorganization, which was objected to by several
large creditors, including the General Partner. These creditors were also
seeking a formal role on the creditors committee or formation of their own
committee.
Upon the termination of the Debtor's exclusivity period, competing plans were
filed by other creditors to the plan, and voting on the competing plans occurred
October 8, 2001. The results of the vote were that, another of the creditor's,
American Electric Power's ("AEP") Plan of Reorganization ("AEP Plan") was
successful. Under the AEP Plan, the claim of the Partnership has been assigned
to a liquidating trustee for resolution and satisfaction from the Debtor's
estate.
In January 2002, ATEL attended an appellate settlement conference seeking to
resolve the outstanding disputed claim. A reserve has been set aside by the
Debtor's liquidating trustee in the amount of $1.2 million in partial
satisfaction of the Partnership's claim, although this claim amount remains in
dispute. Currently, the likelihood of recovery of amounts above the payment of
the lease rent and the liquidation of the equipment already received remains
speculative and highly uncertain.
Item 2. CHANGES IN SECURITIES.
Inapplicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
Inapplicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS.
Inapplicable.
9
Item 5. OTHER INFORMATION.
Inapplicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a)
1. Financial Statements
Included in Part I of this report:
Balance Sheets, September 30, 2002 and December 31, 2001.
Income statements for the nine and three month periods ended
September 30, 2002 and 2001.
Statement of changes in partners' equity for the nine month period
ended September 30, 2002.
Statements of cash flows for the nine and three month periods ended
September 30, 2002 and 2001.
Notes to the Financial Statements
2. Financial Statement Schedules
All other schedules for which provision is made in the applicable
accounting regulations of the Securities and Exchange Commission
are not required under the related instructions or are
inapplicable, and therefore have been omitted.
(b) Report on Form 8-K
None
10
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.
Date:
November 7, 2002
ATEL CASH DISTRIBUTION FUND IV, L.P.
(Registrant)
By: ATEL Financial Corporation
General Partner of Registrant
By: /s/ DEAN L. CASH
-----------------------------------
Dean L. Cash
President and Chief Executive Officer
of General Partner
By: /s/ PARITOSH K. CHOKSI
-----------------------------------
Paritosh K. Choksi
Executive Vice President of
Managing Member and
Principal financial officer of
registrant
By: /s/ DONALD E. CARPENTER
--------------------------------------
Donald E. Carpenter
Principal accounting officer of
registrant
11
CERTIFICATIONS
I, Paritosh K. Choksi, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of ATEL Cash
Distribution Fund IV, LP;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
Date: November 7, 2002
/s/ PARITOSH K. CHOKSI
- ----------------------------------------
Paritosh K. Choksi
Principal financial officer of registrant, Executive
Vice President of General Partner
12
CERTIFICATIONS
I, Dean L. Cash, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of ATEL Cash
Distribution Fund IV, LP;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
Date: November 7, 2002
/s/ DEAN L. CASH
- ----------------------------------------
Dean L. Cash
President and Chief Executive
Officer of General Partner
13
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly report on Form 10QSB of ATEL Cash Distribution
Fund IV, LP, (the "Partnership") for the period ended June 30, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
and pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the
Sarbanes-Oxley Act of 2002, I, Dean L. Cash, Chief Executive Officer of ATEL
Financial Services, LLC, general partner of the Partnership, hereby certify
that:
1. The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934 ; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Partnership.
Date: November 7, 2002
/s/ DEAN L. CASH
- -------------------------------
Dean L. Cash
President and Chief Executive
Officer of General Partner
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly report on Form 10QSB of ATEL Cash Distribution
Fund IV, LP, (the "Partnership") for the period ended June 30, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
and pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the
Sarbanes-Oxley Act of 2002, I, Paritosh K. Choksi, Chief Financial Officer of
ATEL Financial Services, LLC, general partner of the Partnership, hereby certify
that:
1. The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934 ; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Partnership.
Date: November 7, 2002
/s/ PARITOSH K. CHOKSI
- -------------------------------
Paritosh K. Choksi
Executive Vice President of General
Partner, Principal financial officer of registrant
14