SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1997
--------------------------------------------------
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 33-80849
---------------------------------------------------------
Capital Preferred Yield Fund-IV, L.P.
-------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 84-1331690
- ----------------------- ------------------------------------
(State of organization) (I.R.S. Employer Identification No.)
7175 West Jefferson Avenue, Suite 4000
Lakewood, Colorado 80235
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (303) 980-1000
--------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 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 .
----- -----
Exhibit Index Appears on Page 15
Page 1 of 16 Pages
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Quarterly Report on Form 10-Q
For the Quarter Ended
September 30, 1997
Table of Contents
-----------------
PART I. FINANCIAL INFORMATION PAGE
----
Item 1. Financial Statements (Unaudited)
Balance Sheets - September 30, 1997 and December 31, 1996 3
Statements of Income - Three and nine months ended
September 30, 1997 and for the period from the Commencement
of Operations (April 16, 1996) to September 30, 1996 4
Statement of Partner's Capital - January 1, 1997 -
September 30, 1997 5
Statements of Cash Flows - Nine months ended September 30,
1997 and for the period from the Commencement
of Operations (April 16, 1996) to September 30, 1996 6
Notes to Financial Statements 7 - 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10 - 12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 6. Exhibits and Reports on Form 8-K 13
Signature 14
2
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1997 1996
------------ ------------
Cash and cash equivalents $ 6,885,601 $ 3,286,072
Accounts receivable 125,810 76,524
Receivable from affiliates 10,000 -
Net investment in direct finance leases 4,825,586 182,328
Leased equipment, net 40,051,128 13,107,533
----------- -----------
Total assets $51,898,125 $16,652,457
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and accrued liabilities $ 534,174 $ 658,229
Payable to affiliates 48,037 43,483
Rents received in advance 148,136 31,991
Distributions payable to partners 362,714 128,898
Discounted lease rentals 19,456,523 2,765,239
----------- -----------
Total liabilities 20,549,584 3,627,840
----------- -----------
PARTNERS' CAPITAL:
General partner - -
Limited Partners:
Class A 30,988,779 12,878,374
Class B 359,762 146,243
----------- -----------
Total partners' capital 31,348,541 13,024,617
----------- -----------
Total liabilities and partners' capital $51,898,125 $16,652,457
=========== ===========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
For the period
from the
Commencement
Three months Three months Nine months of Operations
ended ended ended (April 16, 1996) to
September 30, 1997 September 30, 1996 September 30, 1997 September 30, 1996
------------------ ------------------ ------------------ -------------------
<S> <C> <C> <C> <C>
REVENUE:
Operating lease rentals $3,287,838 $ 190,847 $7,636,203 $ 247,586
Direct finance lease income 67,999 3,230 168,281 3,230
Interest income 90,231 14,727 186,038 19,806
---------- ---------- ---------- ----------
Total revenue 3,446,068 208,804 7,990,522 270,622
---------- ---------- ---------- ----------
EXPENSES:
Depreciation and amortization 2,666,924 148,914 6,164,477 177,197
Direct services from general
partner 22,646 17,036 64,056 23,891
Management fees paid to
general partner 74,992 3,210 165,690 3,971
General and administrative 28,373 35,881 100,998 36,622
Interest on discounted
lease rentals 393,580 - 902,429 -
---------- ---------- ---------- ----------
Total expenses 3,186,515 205,041 7,397,650 241,681
---------- ---------- ---------- ----------
NET INCOME $ 259,553 $ 3,763 $ 592,872 $ 28,941
========== ========== ========== ==========
NET INCOME (LOSS) ALLOCATED:
To the general partner $ 19,375 $ 8,896 $ 53,848 $ 12,658
To the Class A limited partners 237,740 (5,088) 533,542 16,109
To the Class B limited partner 2,438 (45) 5,482 174
---------- ---------- ---------- ----------
$ 259,553 $ 3,763 $ 592,872 $ 28,941
========== ========== ========== ==========
Net income (loss) per weighted
average Class A limited
partner unit outstanding $ .68 $ (.11) $ 1.95 $ .39
========== ========== ========== ==========
Weighted average Class A
limited partner units
outstanding 348,370 47,746 272,953 41,214
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Class A
Limited Class A Class B
General Partners Limited Limited
Partner Units Partners Partner Total
------- -------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C>
Partners' capital,
January 1, 1997 $ - 154,503 $ 12,878,374 $ 146,243 $ 13,024,617
Capital contributions - 229,954 23,058,428 230,000 23,288,428
Volume discount - - (6,000) - (6,000)
Commissions and offering
costs on sale of Class A
limited partner units (33,033) - (3,264,169) - (3,297,202)
Redemptions - - (58,902) - (58,902)
Net income 53,848 - 533,542 5,482 592,872
Distributions declared
to partners (20,815) - (2,152,494) (21,963) (2,195,272)
--------- --------- ------------ --------- ------------
Partners' capital,
September 30, 1997 $ - 384,457 $ 30,988,779 $ 359,762 $ 31,348,541
========= ========= ============ ========= ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the period
from the
Commencement
Nine months of Operations
ended (April 16, 1996) to
September 30, 1997 September 30, 1996
------------------ -------------------
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 7,378,591 $ 176,445
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment on operating
leases from affiliate (19,513,857) (4,621,028)
Investment in direct finance leases,
acquired from affiliate (1,961,774) (134,706)
------------ ------------
Net cash used in investing activities (21,475,631) (4,755,734)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Class A capital contributions 23,058,428 7,743,042
Proceeds from Class B capital contributions 230,000 70,000
Proceeds from discounted lease rentals 3,695,735 -
Principal payments on discounted lease rentals (3,951,135) -
Redemptions of Class A limited partner units (58,902) -
Commissions paid to affiliate in connection
with the sale of Class A limited partner units (2,305,844) (756,205)
Non-accountable organization and offering
expenses reimbursement paid to the general
partner in connection with the sale of Class A
limited partner units (1,010,258) (302,382)
Distributions to partners (1,961,455) (89,066)
------------ ------------
Net cash provided by financing activities 17,696,569 6,665,389
------------ ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 3,599,529 2,086,100
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,286,072 -
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 6,885,601 $ 2,086,100
============ ============
Supplemental disclosure of cash flow information:
Interest paid on discounted lease rentals $ 902,429 $ -
Supplemental disclosure of noncash investing and
financing activities:
Discounted lease rentals assumed in equipment acquisitions 16,946,684 -
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation:
---------------------
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
disclosures required by generally accepted accounting principles for annual
financial statements. In the opinion of the general partner, all
adjustments (consisting only of normal recurring adjustments) considered
necessary for a fair presentation have been included. The balance sheet at
December 31, 1996 has been derived from the audited financial statements
included in the Partnership's 1996 Form 10-K. For further information,
refer to the financial statements of Capital Preferred Yield Fund-IV, L.P.
(the "Partnership"), and the related notes, included in the Partnership's
Annual Report on Form 10-K for the year ended December 31, 1996 (the "1996
Form 10-K"), previously filed with the Securities and Exchange Commission.
2. Transactions With the General Partner and Affiliates
----------------------------------------------------
SALES COMMISSIONS AND OFFERING COSTS
Under the terms of the Partnership Agreement, CAI Securities Corporation,
an affiliate of the general partner, is entitled to receive sales
commissions and wholesaling fees equal to 10% of the Class A limited
partners' capital contributions, up to 9% of which is paid to participating
broker-dealers. During the nine months ended September 30, 1997, CAI
Securities Corporation earned commissions and fees in the amount of
$2,305,843 ($1,960,971 of which was paid to participating broker-dealers).
As provided in the Partnership Agreement, the general partner earned
$922,337 as reimbursement for expenses incurred during the nine months
ended September 30, 1997 in connection with the organization of the
Partnership and the offering of Class A limited partner units. The general
partner also received $69,022 ($15,690 of which was paid in October 1997)
as reimbursement for due diligence expenses incurred during the nine months
ended September 30, 1997.
As provided in the Prospectus, a volume discount, equal to 1.0% of the
purchase price per unit for all purchases of $500,000 or more, was granted
during the nine months ended September 30, 1997 in the amount of $6,000.
7
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. Transactions With the General Partner and Affiliates, continued
----------------------------------------------------
DIRECT SERVICES:
The general partner and its affiliates provide accounting, investor
relations, billing, collecting, asset management, and other administrative
services to the Partnership. The Partnership reimburses the general partner
for these services performed on its behalf as permitted under the terms of
the Partnership Agreement. Such reimbursements totaled $64,056 ($6,650 of
which were paid in October 1997) during the nine months ended September 30,
1997.
PAYABLE TO AFFILIATES:
Payable to affiliates consists of direct services, management fees, sales
commissions, wholesaling fees, organization and offering expense
reimbursements with respect to Class A limited partner units payable to the
general partner and its affiliates.
RECEIVABLE FROM AFFILIATES
Receivable from affiliates represents a $10,000 Class B contribution for
September that was paid in October.
3. During the nine months ended September 30, 1997, the Partnership acquired
the equipment described below from Capital Associates International, Inc.
("CAII"):
<TABLE>
<CAPTION>
Total
Acquisition Equipment
Cost of Fees and Purchase
Lessee Equipment Description Equipment Reimbursements Price
--------------------------- --------------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
Alcoa Fujikura Forklifts $ 1,462,149 $ 49,555 $ 1,511,704
Alliance Data Systems, Inc. Vsats 1,561,463 50,102 1,611,565
Aluminum Co. of America Lift Trucks 102,550 3,478 106,028
Analysis & Technology PC's 391,607 12,664 404,271
Applied Magnetics Teching system 1,182,922 40,988 1,223,910
Arqule, Inc. Research & Development 2,332,820 80,832 2,413,652
Brown Strauss Forklifts 452,385 15,675 468,060
Burlingame Industries Forklifts 63,433 2,198 65,631
Christy's Market Foodservice equipment 761,846 26,398 788,244
Chrysler Corp. Forklifts 1,020,599 35,364 1,055,963
Consolidated Diesel Burden carriers 86,809 3,008 89,817
8
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. continued
Total
Acquisition Equipment
Cost of Fees and Purchase
Lessee Equipment Description Equipment Reimbursements Price
--------------------------- --------------------- ------------ -------------- ------------
Darigold, Inc. Forklifts $ 81,230 $ 2,815 $ 84,045
Dewolfe Company Computer equipment 553,977 19,195 573,172
Diamond Shamrock POS system 1,982,783 68,703 2,051,486
Enogex Inc. Computer equipment 915,365 31,717 947,082
General Motors Corp. Forklifts 1,193,151 41,343 1,234,494
General Motors Corp. Machine tools 269,075 9,323 278,398
Genetics Institute Research & Development 1,008,407 34,941 1,043,348
Georgetown Steel Lift trucks 91,558 3,172 94,730
GS Technologies Truck scale 57,821 2,004 59,825
Heluva Good Cheese Material handling 47,066 1,599 48,665
Home Depot, Inc. Lift trucks 555,952 18,864 574,816
Hughes Aircraft Lift trucks 338,459 11,728 350,187
Hughes Network Image printer 41,808 1,449 43,257
ICI American Holdings, Inc. Dell computer equipment 164,787 5,710 170,497
In Home Health, Inc. Furniture, fixture & equipment 152,602 5,288 157,890
International Paper Material handling equipment 545,497 18,901 564,398
ITT Automotive Mailing machine 12,411 430 12,841
Lear Corp. Computer equipment 70,730 2,348 73,078
Lexmark International, Inc. Wave soldering system 1,229,638 42,607 1,272,245
Louisiana Workers Comp. Computer equipment 80,068 2,775 82,843
Lucas Industries Manufacturing equipment 823,887 28,548 852,435
Lucent Technology Fuji placement 541,047 17,824 558,871
Matsushita Phone system 110,432 3,826 114,258
Morgan Construction Production equipment 1,278,202 44,290 1,322,492
Nabisco Sweeper 17,248 598 17,846
National Broadcasting Co. Broadcast video equipment 319,785 9,879 329,664
New York Hospital Imaging system 393,051 13,619 406,670
Northwestern University Test equipment 137,343 4,759 142,102
Oklahoma Gas & Electric Computer equipment 2,862,444 99,184 2,961,628
Owens Corning Computer equipment 938,320 32,507 970,827
Precision Castparts Forklifts 157,036 5,441 162,477
Robertshaw Controls Manufacturing equipment 1,350,201 46,784 1,396,985
Sealed Air Corp. Lift trucks 144,250 4,910 149,160
Source, Inc. PC's 43,503 1,507 45,010
Texas Eastern Trans. PC's 342,455 10,920 353,375
Texas Instruments Manufacturing equipment 620,338 21,495 641,833
The Foxboro Company Manufacturing equipment 4,584,226 158,843 4,743,069
9
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. continued
Total
Acquisition Equipment
Cost of Fees and Purchase
Lessee Equipment Description Equipment Reimbursements Price
--------------------------- --------------------- ------------ -------------- ------------
Thomson Industries Manufacturing equipment $ 553,734 $ 19,187 $ 572,921
Total System Services Mail sorter 1,043,330 35,388 1,078,718
Triconex Corporation Manufacturing equipment 462,208 16,016 478,224
Unicco Service Co. Sweeper/scrubber 30,648 1,062 31,710
United Artists Projection equipment 663,318 22,984 686,302
Universal Forest Products Forklifts 216,608 7,506 224,114
US Sugar Excavator 327,528 11,349 338,877
USS/Kobe Steel Lift trucks 276,157 9,569 285,726
Xerox Test equipment 97,500 3,379 100,879
------------ ----------- ------------
$ 37,145,767 $ 1,276,548 $ 38,422,315
============ =========== ============
</TABLE>
As of September 30, 1997, the general partner had identified $8.9 million
of equipment that satisfied the Partnership's investment criteria that is
expected to be acquired during the remainder of 1997.
10
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
- ---------------------
Presented below are schedules (prepared solely to facilitate the discussion of
results of operations that follows) showing condensed statements of income
categories and analyses of changes in those condensed categories derived from
the Statements of Income:
<TABLE>
<CAPTION>
Condensed Statements Condensed Statements
of Income for The effect on of Income for The effect on
the three months net income the nine months net income
ended September 30, of changes ended September 30, of changes
------------------------- between ------------------------- between
1997 1996 periods 1997 1996* periods
---------- ----------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Leasing margin $ 295,333 $ 45,163 $ 250,170 $ 737,578 $ 73,619 $ 663,959
Interest income 90,231 14,727 75,504 186,038 19,806 166,232
Management fees paid to
general partner (74,992) (3,210) (71,782) (165,690) (3,971) (161,719)
Direct services from
general partner (22,646) (17,036) (5,610) (64,056) (23,891) (40,165)
General and administrative (28,373) (35,881) 7,508 (100,998) (36,622) (64,376)
Provision for losses - - - - - -
--------- --------- --------- --------- --------- ---------
Net income $ 259,553 $ 3,763 $ 255,790 $ 592,872 $ 28,941 $ 563,931
========= ========= ========= ========= ========= =========
</TABLE>
*For the period from the Commencement of Operations (April 16, 1996) to
September 30, 1996.
LEASING MARGIN
Leasing margin consists of the following:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
--------------------------- ------------------------------
1997 1996 1997 1996*
------------ ----------- ------------- -----------
<S> <C> <C> <C> <C>
Operating lease rentals $ 3,287,838 $ 190,847 $ 7,636,203 $ 247,586
Direct finance lease income 67,999 3,230 168,281 3,230
Depreciation and amortization (2,666,924) (148,914) (6,164,477) (177,197)
Interest expense on discounted lease rentals (393,580) - (902,429) -
----------- ----------- ------------ -----------
Leasing margin $ 295,333 $ 45,163 $ 737,578 $ 73,619
=========== =========== ============ ===========
Leasing margin ratio 9% 23% 9% 29%
=========== =========== ============ ===========
</TABLE>
*For the period from the Commencement of Operations (April 16, 1996) to
September 30, 1996.
11
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations, continued
Results of Operations, continued
- ---------------------
LEASING MARGIN, continued
All components of leasing margin increased due to growth in the Partnership's
lease portfolio. Leasing margin ratio fluctuates primarily due to non-recourse
interest expense. As of September 30, 1997 a portion of the Partnership's
portfolio consisted of operating leases financed with non-recourse debt while
for the comparable year earlier period(s), the portfolio was not financed with
non-recourse debt and therefore leasing margin was not impacted by interest
expense. Leasing margin and the related leasing margin ratio for an operating
lease financed with non-recourse debt increases during the term of the lease
since rents and depreciation are typically fixed while interest expense declines
as the related non-recourse debt is repaid.
The ultimate profitability of the Partnership's leasing transactions is
dependent in part on the general level of interest rates at the time the leases
are originated, as well as future equipment values and on-going lessee
creditworthiness. Because leasing is an alternative to financing equipment
purchases with debt, lease rates tend to rise and fall with interest rates
(although lease rate movements generally lag interest rate changes in the
capital markets).
INTEREST INCOME
Interest income increased due to an increase in invested cash from sales of
Class A investment units pending the Partnership's initial acquisition of
equipment.
EXPENSES
Management fees, direct services from general partner and general and
administrative expenses increased due to growth in the Partnership's lease
portfolio.
Liquidity & Capital Resources
- -----------------------------
The Partnership was formed on December 18, 1995. On April 16, 1996, the
Partnership commenced offering 500,000 Class A limited partner units at $100 per
unit for sale to investors. On June 3, 1996, the Partnership held its initial
closing, receiving gross offering proceeds of $1,200,000 from the sale of 12,000
Class A limited partner units. The Partnership intends to continue offering up
to 500,000 Class A limited partner units for sale and admitting additional Class
A limited partners through April 15, 1998.
12
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations, continued
Liquidity & Capital Resources, continued
- -----------------------------
A summary of the Partnership's offering activities from the commencement of
operations to September 30, 1997 is presented below:
Class A limited partner units sold 385,137
============
Gross offering proceeds including volume discounts of $6,000 $ 38,513,710
Sales commissions (3,851,371)
Organization and offering expenses (1,540,448)
Due diligence expenses (135,652)
------------
Net offering proceeds $ 32,986,239
============
Class B limited partner (CAII) cash contribution $ 380,000
============
A summary of the Partnership's offering activities for the nine months ended
September 30, 1997 is presented below:
Class A limited partner units sold 230,584
============
Gross offering proceeds including volume discounts of $6,000 $ 23,058,428
Sales commissions (2,305,843)
Organization and offering expenses (922,337)
Due diligence expenses (69,022)
------------
Net offering proceeds $ 19,761,226
============
Class B limited partner (CAII) cash contribution $ 230,000
============
The Partnership funds its operating activities principally with cash from rents,
discounted lease rentals (non-recourse debt), interest income and sales of
off-lease equipment. Available cash and cash reserves of the Partnership are
invested in short-term government securities pending the acquisition of
equipment or distribution to the partners.
During the nine months ended September 30, 1997, the Partnership acquired
equipment subject to leases with a total purchase price of $38,422,315
(including $16,946,684 of discounted lease rentals). As of September 30, 1997,
the general partner had identified $8.9 million of additional equipment that
satisfied the Partnership's acquisition criteria that is expected to be acquired
during the remainder of 1997.
13
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations, continued
Liquidity & Capital Resources, continued
- -----------------------------
During the nine months ended September 30, 1997, the Partnership declared
distributions to the Class A limited partners of $2,152,494 ($355,921 of which
was paid during October 1997). A substantial portion of such distributions is
expected to constitute a return of capital. Distributions may be characterized
for tax, accounting and economic purposes as a return of capital, a return on
capital or a portion of both. The portion of each cash distribution by a
partnership which exceeds its net income for the fiscal period may be deemed a
return of capital for accounting purposes. However, the total percentage of a
partnership's return on capital over its life will only be determined after all
residual cash flows (which include proceeds from the re-leasing and sale of
equipment) have been realized at the termination of the Partnership. For the
nine months ended September 30, 1997, approximately 73% of the cash
distributions to the partners of the Partnership constituted a return of capital
for accounting purposes. This percentage may not be reflective of the percentage
of distributions that constitutes a return of capital at any subsequent point in
time.
The general partner believes that the Partnership will generate sufficient cash
flows from operations during the remainder of 1997, to (1) meet current
operating requirements, (2) enable it to fund cash distributions to both the
Class A and Class B limited partners at annualized rates of 10.5% (substantial
portions of which are expected to constitute returns of capital), of their
capital contributions, and (3) reinvest in additional equipment under leases,
provided that suitable equipment can be identified and acquired.
14
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
PART II.
OTHER INFORMATION
Item 1. Legal Proceedings
The Partnership is not a party to any material legal proceedings
outside the ordinary course of its business.
Item 6. Exhibits and Reports on Form 8-K
(a) None.
(b) The Partnership did not file any reports on Form 8-K during the
quarter ended September 30, 1997.
15
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnership has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CAPITAL PREFERRED YIELD FUND-IV, L.P.
By: CAI Equipment Leasing V Corp.
Dated: November 13, 1997 By: /s/Anthony M. DiPaolo
---------------------
Anthony M. DiPaolo
Senior Vice President
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated balance sheets and consolidated statements of income and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 6,885,601
<SECURITIES> 0
<RECEIVABLES> 135,810
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 40,051,128
<DEPRECIATION> 0
<TOTAL-ASSETS> 51,898,125
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 31,348,541
<TOTAL-LIABILITY-AND-EQUITY> 51,898,125
<SALES> 0
<TOTAL-REVENUES> 7,990,522
<CGS> 0
<TOTAL-COSTS> 7,397,650
<OTHER-EXPENSES> 229,746
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 902,429
<INCOME-PRETAX> 592,872
<INCOME-TAX> 0
<INCOME-CONTINUING> 592,872
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 592,872
<EPS-PRIMARY> 1.95
<EPS-DILUTED> 1.95
</TABLE>
