<PAGE> 1
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period ended September 30, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from _________ to _________
Commission file number 0-28710
(Exact name of small business issuer as
specified in its charter)
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD., A CALIFORNIA LIMITED PARTNERSHIP
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
CALIFORNIA 33-0548134
(Address of principal executive offices)
4100 NEWPORT PLACE, SUITE 400, NEWPORT BEACH, CALIFORNIA
(Issuer's telephone number)
(714) 261-2400
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such report(s), and (2)
has been subject to such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court. Yes [X] No [ ].
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: N/A
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [X]
1
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
INDEX TO FORM 10-QSB
PART I
<TABLE>
<S> <C>
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis or Plan of Operation 10
PART II
Item 1. Legal Proceedings 14
Item 2. Exhibits and Reports 15
Signatures 16
</TABLE>
2
<PAGE> 3
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
PART I
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<S> <C>
Index to the Financial Statements for the Partnership:
Balance Sheets, September 30, 1997 and December 31, 1996..................... 4
Statements of Operations, For the Three and Nine Months Ended September 30,
1997 and September 30, 1996........................................... 5
Statements of Partnership Capital, For the Nine Months Ended
September 30, 1997 and Year Ended December 31, 1996................... 6
Statements of Cash Flows, For the Nine Months Ended September 30,
1997 and September 30, 1996........................................... 7
Footnotes to Financial Statements ........................................... 8
</TABLE>
The financial statements have been prepared by Performance Asset Management Fund
IV, Ltd., A California Limited Partnership ("Partnership"), without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. The
Partnership believes that the disclosures are adequate to make the information
presented not misleading when read in conjunction with the Partnership's
financial statements for the year ended December 31, 1996. The financial
information presented reflects all adjustments, consisting only of normal
recurring adjustments, which are, in the opinion of management, necessary for a
fair statement of the results for the interim periods presented.
3
<PAGE> 4
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
BALANCE SHEETS
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
Cash and equivalents $ 4,031,952 $ 2,121,545
Cash held in trust 2,815,791 5,834,268
Investments in distressed loan portfolios, net 7,857,350 9,091,186
Due from affiliate -- 136,022
Other assets 104,977 104,977
Organization costs, net 612 3,454
=========== ===========
Total assets $14,810,682 $17,291,452
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 5,350 $ 6,351
Due to affiliates, net 509,522 350,576
----------- -----------
Total liabilities 514,872 356,927
----------- -----------
Commitments and contingencies
Partners' capital 14,295,810 16,934,525
=========== ===========
Total liabilities and partners' capital $14,810,682 $17,291,452
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 5
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
------------------------- -------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Portfolio collections $ 630,035 $ 749,724 $ 2,047,261 $ 4,443,911
Less: portfolio basis recovery 606,690 748,714 1,998,422 4,296,050
----------- ----------- ----------- -----------
Net investment income 23,345 1,010 48,839 147,861
----------- ----------- ----------- -----------
Cost of operations:
Collection expense 47,988 6,409 215,877 120,346
Management fee expense 52,010 46,498 160,734 163,691
Professional fees 2,359 213,625 168,152 630,511
Amortization 917 828 2,842 2,842
General and administrative expense 1,176 9,171 64,976 19,260
----------- ----------- ----------- -----------
Total operating expenses 104,450 276,531 612,581 936,650
----------- ----------- ----------- -----------
Income (loss) from operations (81,105) (275,521) (563,742) (788,789)
Other income:
Interest (21,303) 86,724 167,337 288,165
Other income 0 2,400 9,993 13,951
=========== =========== =========== ===========
Net income (loss) ($ 102,408) ($ 186,397) ($ 386,412) ($ 486,673)
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
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PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF PARTNERS' CAPITAL (DEFICIT) FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNER PARTNERS TOTAL
------------ ------------ ------------
<S> <C> <C> <C>
Balance, December 31, 1995 ($ 516,291) $ 19,815,741 $ 19,299,450
Redemption of partnership units -- (40,000) (40,000)
Distributions (159,334) (1,433,425) (1,592,759)
Net loss (73,217) (658,949) (732,166)
------------ ------------ ------------
Balance, December 31, 1996 (748,842) 17,683,367 16,934,525
Redemption of partnership units -- (25,000) (25,000)
Distributions (222,903) (2,004,400) (2,227,303)
Net income (38,641) (347,771) (386,412)
============ ============ ============
Balance, September 30, 1997 ($ 1,010,386) $ 15,306,196 $ 14,295,810
============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 7
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) ($386,412) ($486,673)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization 2,842 2,842
Decrease (increase) in assets:
Other assets -- 219,153
Due from affiliates 136,022 489,650
Increase (decrease) in liabilities:
Accounts payable (1,001) (37,088)
Due to affiliates 158,946 (8,250)
----------- -----------
Net cash provided by (used in)
operating activities (89,603) 179,634
----------- -----------
Cash flows provided by (used in) investing activities:
Recovery of portfolio basis 1,998,422 4,296,050
Receivable from West Capital -- 1,937,718
Cash held in trust 3,018,477 (498,793)
Purchase of investments in distressed loan portfolios (764,586) (2,904,293)
----------- -----------
Net cash provided by investing activities 4,252,313 2,830,682
----------- -----------
Cash flows provided by (used in) financing activities:
Redemption of limited partnership units (25,000) (35,000)
Distributions to partners (2,227,303) (637,122)
----------- -----------
Net cash used in financing activities (2,252,303) (672,122)
----------- -----------
Net (decrease) increase in cash 1,910,407 2,338,194
Cash at beginning of period 2,121,545 559,223
=========== ===========
Cash at end of period $ 4,031,952 $ 2,897,417
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 8
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
1. Organization and Description of Business
Performance Asset Management Fund IV, Ltd., A California Limited
Partnership ("Partnership"), was formed in October 1992, for the purpose
of acquiring investments in or direct ownership of distressed loan
portfolios from financial institutions and other sources. Interests in
the Partnership were sold in an intrastate offering to residents of
California pursuant to the provisions of Section 3(A) (11) of the
Securities Act of 1933; however, the Partnership did not begin its
primary operations until March 1993. The General Partner is Performance
Development, Inc., a California corporation ("General Partner").
Profits, losses, and cash distributions are allocated 90% to the limited
partners and 10% to the General Partner until such time as the limited
partners have received cash equal to 100% of their contributions to the
capital of the Partnership plus an amount equal to 6% annually of
remaining unpaid capital contributions which will accumulate until
recovery by those limited partners of these capital contributions.
Thereafter, Partnership profits, losses, and cash distributions will be
allocated 70% to the limited partners and 30% to the General Partner.
Cash and Equivalents
The Partnership defines cash equivalents as all highly liquid
investments with a maturity of three months or less when purchased. The
Partnership maintains its cash balances at one bank in accounts which,
at times, may exceed federally insured limits. The Partnership uses a
cash management system whereby idle cash balances are swept daily into a
master account and invested in high quality, short-term securities. The
General Partner believes that these cash balances are not subject to any
significant credit risk due to the nature of the investments and the
fact that the Partnership has not experienced any losses with cash and
equivalent investments.
8
<PAGE> 9
Cash Held in Trust
The General Partner anticipates that the Partnership and similar
California limited partnerships for which the General partner serves as
their general partner ("PAM Funds") may, in the future, be reorganized
and merged with and into one corporation. In an effort to accomplish
that reorganization and merger on terms and conditions consistent with
the intent of the General Partner, on December 12, 1995, the General
Partner, on behalf of the Partnership and the PAM Funds, and the State
of California Department of Corporations entered into an agreement
pursuant to the provisions of which the Performance Asset Management
Fund Trust ("Trust") was created. These funds are subject to the terms
of the Trust's agreement. The Trust was the recipient of a portion of
the funds resulting from a settlement of certain litigation between the
Partnership and its affiliates and West Capital Financial Services Corp.
("WCFSC") and its affiliates.
The General Partner and the Department of Corporations currently
disagree regarding certain allocations among the Trust beneficiaries
made by the General Partner. The outcome of this disagreement is
anticipated to be resolved in the near future.
Investments in Distressed Loan Portfolios and Revenue Recognition
Investments in distressed loan portfolios are carried at the lower of
cost, market, or estimated net realizable value. Amounts collected are
treated as a reduction to the carrying basis of the related investments
on an individual portfolio basis. Accordingly, income is not recognized
until 100% recovery of the original cost of the investment in each
portfolio occurs. Estimated net realizable value represents the General
Partner's estimates, based on its present plans and intentions, of the
present value of future collections. Due to the distressed nature of
these investments, no interest is earned on outstanding balances, and
there is no assurance that the unpaid principal balances will ultimately
be collected. Any adjustments to the carrying value of the individual
portfolios are recorded in the results of operations.
Organization Costs, Net
Organization costs include legal and other professional fees incurred
related to the organization of the Partnership. These costs are
capitalized and amortized using the straight-line method over five
years. Accumulated amortization at September 30, 1997 and December 31,
1996 totaled $17,735 and $14,893, respectively.
Income Taxes
No provision for income taxes has been made in the financial statements,
except for the Partnership's minimum state franchise tax liability of
$800. All partners are taxed individually on their share of the
Partnership's earnings and losses.
9
<PAGE> 10
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenue and
expenses during the reported period. Actual results could differ from
the estimate.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS.
The information contained in this report on Form 10-QSB, other than
historical facts, contains "forward-looking statements" (as such term is
defined with the meaning of the Private Securities Litigation Reform Act
of 1995) including, without limitation, statements as to the
Partnership's objective to grow through future portfolio acquisitions,
portfolio account sales, the Partnership's ability to realize operating
efficiencies in the integration of its acquisitions, trends in the
Partnership's future operating performance, and statements as to the
Partnership's or the General Partner's beliefs, expectations and
opinions. Forward looking statements may be identified by the use of
forward looking terminology, such as "may", "will", "expect",
"estimate", "anticipate", "could", "probable", "possible", "should",
"continue", or similar terms, variations of those terms or the negative
of those terms. Forward-looking statements are subject to risks and
uncertainties and may be affected by various factors which may cause
actual results to differ materially from those in the forward-looking
statements. In addition to the factors discussed in this report, certain
risks, uncertainties and other factors, including, without limitation,
the risk that the Partnership will not be able to realize operating
efficiencies in the integration of its acquisitions, risks associated
with growth and future acquisitions, fluctuations in quarterly operating
results, and the other risks detailed from time to time in the
Partnership's filings with the Securities and Exchange Commission,
including the Partnership's Annual Report on Form 10-KSB, dated March
31, 1997, can cause actual results and developments to be materially
different from those expressed or implied by such forward-looking
statements.
RESULTS OF OPERATIONS.
The Partnership recorded net investment income of $48,839 for the nine
months ended September 30, 1997, a 67% decrease from $147,861 for the
comparable period ended September 30, 1996. The decrease was primarily
attributed to the receipt of proceeds resulting from a settlement
agreement with WCFSC in 1996. The settlement agreement terminated all
servicing relations with WCFSC and assigned and transferred certain
distressed loan portfolios to WCFSC in exchange for the payment of
certain funds owed to the Partnership and its affiliates. Approximately
3% of portfolio collections received for the nine months ended September
30, 1997 was reflected as net investment income which is comparable to
the similar period in 1996.
10
<PAGE> 11
Net investment revenue of $48,839 for the nine months ending September
30, 1997 is the direct result of portfolio collection proceeds from
three portfolios. The remaining portfolio collections of $1,998,422
contributed to a 14% reduction to the book value of total investments in
distressed loan portfolios. The Partnership acquired one portfolio
during the third quarter of 1997, which offset the reduction of net
assets as a result of portfolio collections recognized as portfolio
basis reductions. The Partnership maintains and holds one portfolio
which contributes 49% of net investment revenue and two other portfolios
which contributed the remaining net investment revenue during the nine
months ended September 30, 1997. Collections for the months ended July
31, 1997, August 30, 1997, and September 30, 1997, totaled $249,655,
$189,586, and $190,794, respectively.
The Partnership received proceeds from portfolio sales of $40,691, of
which 99% were recorded as recoveries of investment bases and reflected
as portfolio collections for the three months ended September 30, 1997.
No such proceeds were received for the comparable period ended September
30, 1996. The General Partner continues to believe that proceeds from
both collection proceeds and portfolio account sales will increase in
subsequent periods and estimates that proceeds from portfolio account
sales should exceed those amounts recorded in the fiscal year ended
1996.
Total operating expenses of the Partnership decreased 35% to $612,581
for the nine months ended September 30, 1997, from $936,650 for the
comparable period in 1996. The decrease is due primarily to a reduction
of professional fees of 73% to $168,152 for the nine months ended
September 30, 1997, from $630,511 for the similar period in 1996,
attributed to unusually high legal fees in 1996 associated with the
settlement agreement with WCFSC. Collection expenses increased 79%, to
$215,877 for the nine months ended September 30, 1997 from $120,346 for
the same period in 1996, due to additional skip trace processing on
Partnership debtor accounts conducted to identify and contact additional
collection accounts. These procedures are necessary to increase the
available active collector accounts in acquired portfolios which
eventually contribute to increased collection proceeds. The Partnership
also realized a reduction in management fees by 2% to $160,734 for the
nine months ended September 30, 1997, from $163,691 for the same period
in 1996, which was attributed to the reduction of investments in
distressed loan portfolios and net assets under management. Operating
expenses as a percentage of portfolio collections totaled 30% for the
nine months ended September 30, 1997 as compared to 21% for the
comparable period in 1996.
Total operating expenses of the Partnership decreased 62% to $104,450
for the third quarter of 1997 from $276,531 for the same period in 1996.
The decrease is primarily attributed to a 99% reduction in professional
fees. This decrease is directly related to the reduction of legal fees
associated with the WCFSC settlement in 1996. General and administrative
fees decreased 87% for the quarter ended September 30, 1997 to $1,176
from $9,171 for the same period in 1996, primarily due to printing
expenses associated with the annual report. The increase in collection
expenses of 649% to $47,988, for the three months ended September 30,
1997, from $6,409 for the comparable period ended September 30, 1996, is
caused by certain mailing expenses and skip trace processing associated
with the purchase and servicing of new portfolios.
11
<PAGE> 12
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES.
The Partnership's total assets decreased approximately 14% to
$14,810,682 as of September 30, 1997, from $17,291,452 at December 31,
1996. The decrease was primarily attributed to portfolio collection
proceeds of $2,047,261 of which 98% or $1,998,422 were recorded as a
reduction of investment portfolio assets. The decrease in cash held in
trust (by the Trust) of $3,018,477 was primarily attributed to the
reallocation of the funds held in trust to the PAM Funds involved in the
Trust. The decrease of $136,022 in due from affiliates is the result of
payment of prior period collections.
The increase of $158,946 in due to affiliates was due primarily to
unpaid collection expenses, accrued and unpaid management fees, and
declared but unpaid distributions to the General Partner.
The Partnership acquired one new distressed portfolio asset in the third
quarter of 1997, and anticipates that the Partnership will acquire
additional portfolios in the near future. Future acquisitions will
depend on the asset market, which continues to grow in size and
diversity. The Partnership continues to believe that the Partnership
will continue to acquire low-priced distressed portfolios; however, the
General Partner will continue to evaluate assets with different pricing
and debtor account structure to determine whether such portfolios can
generate significant immediate cash flows and provide additional
liquidity to the Partnership.
The Partnership has made no future commitments with credit card
originators and other financial institutions to acquire portfolio
assets. The General Partner plans to use its present contacts and
relationships to identify and acquire additional assets at optimal
prices, and believes that it will have no difficulties in identifying
and acquiring such assets. The General Partner has suspended
distributions to its partners in the third quarter of 1997 in
anticipation of the contemplated reorganization of the Partnership with
other affiliated partnerships and Performance Capital Management, Inc.,
a California corporation and an affiliate of the General Partner
("PCM"). The General Partner also believes current cash reserves and
future portfolio collection proceeds will be sufficient to acquire
additional portfolio assets in the next twelve months. However, the
General Partner will continuously monitor the Partnership's liquidity
and evaluate whether additional capital will be necessary for future
growth.
IMPACT OF ADDITIONAL PARTNERSHIP ACQUISITIONS AND RESOURCES ON
OPERATIONS.
The General Partner anticipates that additional portfolio acquisitions
and continued expansion will improve the Partnership's liquidity,
profitability and financial condition, which will result in increased
portfolio collections and sales. The General Partner believes that PCM,
which serves as the servicer of the Partnership's portfolios of
indebtedness, must continue to increase that amount of its collection
representatives and human resources in order to supplement such growth
to the Partnership. The General Partner, in conjunction with PCM and
other affiliated companies and partnerships is seeking to lease office
space in which PCM and the Partnership plan to
12
<PAGE> 13
move their facilities. The General Partner believes that this move
provides the Partnership with adequate operating facilities for the
future growth of the Partnership.
The General Partner, on behalf of the Partnership, has filed the
necessary documents, dated November 4, 1997, with the Securities and
Exchange Commission to merge the Partnership, other affiliated
partnerships ("Affiliated Partnerships") and PCM with Performance Asset
Management Company, a Delaware corporation ("Company"), whereby the
company shall acquire, by merger, all of the assets of the Partnership,
PCM and the Affiliated Partnerships. The proposed merger transaction
contemplates that the Partnership and the Affiliated Partnerships shall
receive shares of common stock of the Company in exchange for their
assets. On the winding up and dissolution of the Partnership and the
Affiliated Partnerships, those shares of that common stock shall be
distributed to the non dissenting limited partners in exchange for their
units. The Partnership and the Affiliated Partnerships shall cease to
exist by operation of law upon completion of their winding up and
dissolution. Additionally, the shares of common stock of the Company
that are received shall be registered for trading or other resale
transactions.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Reference is made to the Partnership's Form 10-KSB dated March 31, 1997,
in which such legal proceedings were reported in Part I, Item 3, "Legal
Proceedings". The Partnership, by this reference, makes that disclosure
a part of this Form 10-QSB.
On or about October 31, 1997, SunAmerica, Inc., a Maryland corporation;
SunAmerica Life Insurance Company, an Arizona corporation; WCFSC; and
WCFSC Special Purpose Corporation, a California corporation, as
Plaintiffs, filed a Complaint in United States District Court for the
Central District of California alleging (i) violations of Section 10(b)
of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
pursuant thereto; (ii) fraud and deceit, and (iii) gross negligence.
Specified in that Complaint as Defendants are Vincent E. Galewick,
President of the General Partner; the Partnership; the Affiliated
Partnerships; and the General Partner ("Performance Defendants"). That
Complaint, in essence, alleges that Michael A. Joplin, the then
President of WCFSC, engaged in wrongful, deceptive and fraudulent
conduct in connection with the purchase and sale of certain securities.
Additionally, that Complaint alleges that the Performance Defendants
participated in that conduct.
None of the Performance Defendants participated, either directly or
indirectly, in any wrongful, deceptive and fraudulent conduct in
connection with the purchase and sale of those securities.
As part of their settlement of the various disputes with WCFSC, the
Performance Defendants entered into a thorough and comprehensive Mutual
General Release ("Release"). Pursuant to the provisions of the Release,
WCFSC, for itself and its shareholders, officers, directors, affiliates,
agents, successors, and assigns, forever and unequivocally released,
acquitted and discharged the Performance Defendants and their officers,
directors, employees, shareholders, partnerships, affiliates, agents,
13
<PAGE> 14
successors, and assigns. Therefore, it is the opinion of counsel for the
Performance Defendants that the Performance Defendants have been
completely and unconditionally released from any liability resulting
from their relationships and transactions with WCFSC.
The Performance Defendants deny each and every allegation in that
litigation matter and shall defend that litigation matter vigorously. It
is the opinion of counsel for the Performance Defendants that any
resolution of that litigation matter should be resolved favorably for
the Performance Defendants and, therefore, the resolution of that
litigation matter should not (i) affect the ability of the General
Partner to function as the General Partner and manage operations of the
Partnership or (ii) materially and adversely affect the General Partner,
the Partnership or the Affiliated Partnerships.
ITEM 2.EXHIBITS AND REPORTS.
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit Number Exhibit
-------------- -------
<S> <C>
1 Certificate of Limited Partnership Form LP-1 (Charter
Document) *
2 Agreement of Limited Partnership (Instrument defining
the rights of Security Holders) **
27 Financial Data Schedule
</TABLE>
* Reference is made to the Partnership's Form 10-KSB, dated March 31,
1997, in which that Certificate of Limited Partnership was included as
an exhibit. The Partnership, by this reference, makes that Certificate
of Limited Partnership a part of this Form 10-QSB.
** Reference is made to the Partnership's Form 10-KSB, dated March 31,
1997, in which that Agreement of Limited Partnership was included as an
exhibit. The Partnership, by this reference, makes that Agreement of
Limited Partnership a part of this Form 10-QSB.
14
<PAGE> 15
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Partnership
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: November 10, 1997 Performance Asset Management Fund IV, Ltd.,
A California Limited Partnership
(Registrant)
By: /s/ Vincent E. Galewick
------------------------------
Vincent E. Galewick
President of the General Partner,
Performance Development, Inc.
15
<PAGE> 16
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit Description
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF FINANCIAL CONDITION AS OF SEPTEMBER 30, 1997 AND THE STATEMENT OF
OPERATIONS FOR THE THREE MONTHS ENDED SEPEMBER 30, 1997 AS PROVIDED ON FORM
10-QSB FOR THE THIRD QUARTER 1977 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 1997
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 6,847,743
<SECURITIES> 0
<RECEIVABLES> 104,977
<ALLOWANCES> 0
<INVENTORY> 7,857,350
<CURRENT-ASSETS> 612
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 14,810,682
<CURRENT-LIABILITIES> 514,872
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,295,810
<TOTAL-LIABILITY-AND-EQUITY> 14,810,682
<SALES> 0
<TOTAL-REVENUES> 630,035
<CGS> 606,690
<TOTAL-COSTS> 606,690
<OTHER-EXPENSES> 104,450
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 21,303
<INCOME-PRETAX> (102,408)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (102,408)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
