UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter Ended June 30, 1996
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 0-14408
DELPHI FILM ASSOCIATES IV
(Exact name of registrant as specified in its charter)
New York 13-3261814
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
666 Third Avenue, New York, New York 10017
(Address of principal executive offices) (Zip Code)
(212) 983-9040
(Registrant's telephone number, including area code)
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 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____
<PAGE>
DELPHI FILM ASSOCIATES IV
(A New York Limited Partnership)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1996 1995
<S> <C> <C>
ASSETS
Cash $ $
146 185
Short-Term Investments 1,342 1,227
Receivable from Columbia-Delphi
IV
Productions 650 623
Receivable from Tri-Star-Delphi
IV
Productions 800 777
Interest in Motion Picture
Venture-
Columbia-Delphi IV
Productions 13 13
Total $ $
Assets 2,951 2,825
LIABILITIES AND PARTNERS'
CAPITAL
Liabilities:
Accrued Expenses and Accounts $ $
Payable 57 68
Total
Liabilities 57 68
Partners' Capital (Note 2):
General Partner 74 73
Limited Partners
2,820 2,684
Total
Partners' Capital 2,894 2,757
Total
Liabilities and Partners'
$ $
Capital 2,951 2,825
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
DELPHI FILM ASSOCIATES IV
(A New York Limited Partnership)
STATEMENTS OF OPERATIONS
(000's Omitted, except net profit per unit)
Unaudited
<TABLE>
<CAPTION>
For
the Three Months For the Six Months
Ended June 30, Ended
June 30,
1996
1995 1996 1995
<S> <C> <C> <C> <C>
Interest Income $ $ $ $
17 22 34 43
Expenses:
Management Fee 0 100 0 200
Operating Expenses
91 4 155 7
91 104 155 207
Loss before Share of
Profit in
Motion Picture (74) (82) (121) (164)
Ventures
Share of Profit in
Motion
Picture Venture--
Columbia-
Delphi IV Productions 75 90 200 167
Share of Profit in
Motion Picture
Venture--Tri-Star-
Delphi IV Productions
38 42 58 52
Net Profit $ $ $ $
39 50 137 55
Net Profit Per Unit of
Limited
Partnership Interest $ $ $ $
(8,000 units) 5 6 17 7
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
DELPHI FILM ASSOCIATES IV
(A New York Limited Partnership)
STATEMENTS OF CASH FLOWS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Profit $ $
137 55
Adjustments to reconcile Net
Profit to net cash
provided (used) by operating
activities:
Share of Profit in Motion (258) (219)
Picture Ventures
Distributions from Joint 258 232
Ventures
Changes in Assets and
Liabilities:
Increase in Receivables
from Joint
Ventures, net (50) (19)
Decrease in Accrued
Expenses and Accounts
Payable (11) (87)
Increase in Prepaid
Expense 0 (200)
Net Cash Provided (Used)
by Operating
Activities
76 (238)
Cash Flow From Investing
Activities:
Purchases of Short-Term (2,121) (1,525)
Investments
Redemptions of Short-Term
Investments 2,006 1,357
Net Cash Used by Investing
Activities (115) (168)
Decrease In Cash (39) (406)
Cash at beginning of period
185 473
Cash at end of period $ $
146 67
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
DELPHI FILM ASSOCIATES IV
(A New York Limited Partnership)
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.
They do not include all information and notes required by
generally accepted accounting principles for complete
financial statements. There has been no material change in
the information disclosed in the notes to financial
statements of the Partnership included in the Annual Report
on Form 10-K for the year ended December 31, 1995. The
information furnished includes all adjustments which are, in
the opinion of management, necessary to present fairly the
financial position of the Partnership as of June 30, 1996
and the results of operations and cash flows for the periods
ended June 30, 1996 and 1995. Results of operations for the
three and six month periods ended June 30, 1996 are not
necessarily indicative of the results that may be expected
for the entire fiscal year.
2. Current Operations
As of June 30, 1996, all twenty-seven films in which
the Partnership has an interest have been released. All of
these films have completed their theatrical release and are
being distributed in various ancillary markets.
Based on the anticipated performance of one film
released through the Tri-Star Joint Venture, it is expected
that the Distributor of the Tri-Star Joint Venture will be
required to make an Additional Payment with respect to this
film. Accordingly, distribution fees earned and expected to
be earned by the Distributor of the Tri-Star Joint Venture
as of June 30, 1996 of approximately $392,000 have been
accrued by the Partnership as a receivable from the Tri-Star
Joint Venture.
For the purpose of computing the net profit per unit,
the net profit for the period is allocated 99% to the
limited partners and 1% to the General Partner.
3. Additional Information
Additional information, including the audited year end
1995 Financial Statements and the Summary of Significant
Accounting Policies, is included in the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1995 on
file with the Securities and Exchange Commission.
<PAGE>
Management's Discussion and Analysis of Financial Condition
and Results of Operations
a. Financial Condition
The Partnership has satisfied its commitment to
contribute funds to the Joint Ventures for the production
of, and acquisition of interests in, films. As of June 30,
1996, the Partnership held cash of approximately $146,000
and short-term investments of approximately $1,342,000.
Since the Partnership's obligations to make
contributions to the Joint Ventures for the production of,
and acquisition of interests in, films have been satisfied,
all revenue received by the Partnership (other than with
respect to Unrecouped Films) is used to pay operating
expenses of the Partnership and to make cash distributions
to partners.
The Partnership is in the process of evaluating the
value of its interest in the film assets for the purpose of
possibly selling that interest and eventually liquidating
the Partnership. The General Partner anticipates that the
Partnership may be liquidated by late 1996, or early 1997.
No assurance can be provided that the film assets will be
successfully sold, or if sold, when such sale would occur.
Upon the ultimate sale of the film assets, the Partnership
will commence taking steps to dissolve and liquidate. Since
the Partnership's obligation to make contributions to the
Joint Ventures for the production of, and acquisition of
interests in, films has been satisfied, all revenues
received by the Partnership is used to establish a reserve
for operating expenses of the Partnership and, to the extent
possible, to make cash distributions to partners. The
Partnership does not anticipate significant future revenues
and accordingly, the Partnership does not currently
anticipate making cash distributions to partners on a
quarterly basis. However, the Partnership expects to make a
cash distribution in August 1996 and may make future
distributions if it realizes proceeds from its interest in
films or from the sale of its interest in films (should the
sale occur) net of a reserve for the Partnership's operating
expenses.
The Partnership commenced cash distributions to its
partners in April 1987. Distributions through June 30, 1996
have aggregated $3,785 per unit (75.7% of the limited
partners' original investment in the Partnership).
b. Results of Operations
The Partnership's operating results are primarily
dependent upon the operating results of the Joint Ventures'
and are significantly impacted by the Joint Ventures'
policies.
The performance of each film is based upon the amount
expended for production and other costs associated with a
film and the revenue generated by a film. The amount and
timing of revenues generated by each film is dependent upon
the degree of acceptance by the consumer public and the
particular ancillary market in which the film is then being
exhibited.
Amounts contributed toward each film are compared
periodically to the expected total revenue to be generated
for that film, and write-downs may occur to the extent the
amounts invested exceed the expected total revenue for that
film.
Additionally, each Joint Venture has recorded income
with respect to Additional Payments, to the extent
available, which has allowed it to recover its investment in
films.
For the three months ended June 30, 1996, the Columbia
Joint Venture had
a net profit of which the Partnership's share was
approximately $75,000, due primarily to the profitable
results of certain films. The Tri-Star Joint Venture had a
net profit of which the Partnership's share was
approximately $38,000 due primarily to the profitable
results of one film. In addition, the Partnership earned
approximately $17,000 of interest income from its short-term
investments and incurred approximately $91,000 of expenses
from its operations, resulting in an overall net profit to
the Partnership of approximately $39,000.
For the three months ended June 30, 1995, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $90,000, due primarily to the
profitable results of certain films. The Tri-Star Joint
Venture had a net profit of which the Partnership's share
was approximately $42,000 due primarily to the profitable
results of one film. In addition, the Partnership earned
approximately $22,000 of interest income from its short-term
investments and incurred approximately $104,000 of expenses
from its operations, resulting in an overall net profit to
the Partnership of approximately $50,000.
For the six months ended June 30, 1996, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $200,000, due primarily to the
profitable results of certain films. The Tri-Star Joint
Venture had a net profit of which the Partnership's share
was approximately $58,000 due primarily to the profitable
results of certain films. In addition, the Partnership
earned approximately $34,000 of interest income from its
short-term investments and incurred approximately $155,000
of expenses from its operations, resulting in an overall net
profit to the Partnership of approximately $137,000.
For the six months ended June 30, 1995, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $167,000, due primarily to the
profitable results of certain films. The Tri-Star Joint
Venture had a net profit of which the Partnership's share
was approximately $52,000 due primarily to the profitable
results of one film. In addition, the Partnership earned
approximately $43,000 of interest income from its short-term
investments and incurred approximately $207,000 of expenses
from its operations, resulting in an overall net profit to
the Partnership of approximately $55,000.
The decrease in interest income for the three and six
month periods ended June 30, 1996 as compared with the
corresponding periods in 1995 was primarily due to lower
interest rates earned on short-term investments during 1996.
The decrease in the Partnership's total expenses for
the three and six month periods ended June 30, 1996 as
compared with the corresponding periods in 1995 is primarily
attributable to the Management Fee paid in 1995 but not in
1996 offset, in part, by an increase in Operating Expenses.
The increase in Operating Expenses is primarily due to the
reimbursement to the General Partner for out-of-pocket
expenses incurred in connection with its management of the
Partnership's business in lieu of the Management Fee paid to
the General Partner prior to 1996.
<PAGE>
COLUMBIA-DELPHI IV PRODUCTIONS
(A Joint Venture)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1996 1995
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization
of $164,106 and $164,104, $ 80 $
respectively 82
Receivable from Columbia
Pictures
(Distributor)
6,254 6,278
Total $ 6,334 $
Assets 6,360
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to Columbia Pictures $ 5,604 $
Industries, Inc. 5,655
Payable to Delphi Film
Associates IV 650 623
Total
Liabilities 6,254 6,278
Venturers' Capital:
Columbia Pictures Industries, 67 69
Inc.
Delphi Film Associates IV
13 13
Total
Venturers' Capital 80 82
Total
Liabilities and Venturers'
$ 6,334 $
Capital 6,360
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
COLUMBIA - DELPHI IV PRODUCTIONS
(A Joint Venture)
STATEMENTS OF OPERATIONS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For
the Three Months For the Six Months
Ended June 30, Ended
June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net Revenues From Motion
Picture Exploitation $ $ $ $
318 1,372 919 2,482
Less: (Recapture)
Amortization of
Motion Picture
Production
and
Advertising Costs (31) 65 2 223
Income from Operations 349 1,307 917 2,259
Additional Payments
Accrual 0 60 0 235
Net Income $ $ $ $
349 1,367 917 2,494
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
COLUMBIA - DELPHI IV PRODUCTIONS
(A Joint Venture)
STATEMENTS OF CASH FLOWS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
917 2,494
Adjustments to reconcile Net
Income to
net cash provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 2 223
Accrued Distributions 626 (1,363)
toVenturers
Changes in Assets and
Liabilities:
Increase in Payable to
Delphi Film
Associates IV 27 45
(Decrease) Increase in
Payable to Columbia
Pictures Industries, Inc. (51) 1,318
Decrease (Increase) in
Receivable from
Columbia Pictures 24 (1,128)
(Distributor)
Increase in Motion Picture
Costs
Recoverable from
Additional Payments 0 (235)
Net Cash Provided by Operating
Activities 1,545 1,354
Cash Flow from Financing
Activities:
Distributions to Venturers
(1,545) (1,354)
Net Cash Used by Financing
Activities (1,545) (1,354)
Net Change in Cash 0 0
Cash at beginning of period
0 0
Cash at end of period $ $
0 0
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
COLUMBIA - DELPHI IV PRODUCTIONS
(A Joint Venture)
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.
They do not include all information and notes required by
generally accepted accounting principles for complete
financial statements. There has been no material change in
the information disclosed in the notes to financial
statements of the Joint Venture included in the Annual
Report on Form 10-K of Delphi Film Associates IV (the
"Partnership") for the year ended December 31, 1995. The
information furnished includes all adjustments which are, in
the opinion of management, necessary to present fairly the
financial position of the Joint Venture as of June 30, 1996
and the results of its operations and cash flows for the
periods ended June 30, 1996 and 1995. Results of operations
for the period ended June 30, 1996 are not necessarily
indicative of the results that may be expected for the
entire fiscal year.
2. Current Operations
All twelve films in which the Joint Venture has an
interest have completed their theatrical release and are
being distributed in various ancillary markets. For the
three and six month periods ended June 30, 1996, the Joint
Venture is reporting net revenue of $318,000 and $919,000,
respectively, due primarily to the performance of certain
films in the worldwide free and pay television markets.
For the three and six month periods ended June 30,
1995, the Joint Venture reported net revenue of $1,372,000
and $2,482,000, respectively, due primarily to the
performance of certain films in the worldwide free
television and home video markets. For the six month period
ended June 30, 1995, the Joint Venture recorded an increase
of $235,000 in the accrued Additional Payment due to
changes in the estimated distribution fee to be earned by
its Distributor.
3. Additional Information
Additional information, including the audited year end
1995 Financial Statements and the Summary of Significant
Accounting Policies, is included in the Annual Report on
Form 10-K of the Partnership for the year ended December 31,
1995.
<PAGE>
TRI-STAR -DELPHI IV PRODUCTIONS
(A Joint Venture)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1996 1995
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization of
$108,477 and $108,473, $ $
respectively 98 102
Motion Picture Costs Recoverable
from
Additional Payments 1,853 1,835
Receivable from TriStar
Pictures, Inc.
(Distributor)
1,102 1,083
Total $ 3,053 $
Assets 3,020
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to TriStar Pictures, $ $
Inc. 2,155 2,141
Payable to Delphi Film
Associates IV 800 777
Total
Liabilities 2,955 2,918
Venturers' Capital:
TriStar Pictures, Inc. 98 102
Delphi Film Associates IV
0 0
Total
Venturers' Capital 98 102
Total
Liabilities and Venturers'
$ $
Capital 3,053 3,020
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
TRI-STAR-DELPHI IV PRODUCTIONS
(A Joint Venture)
STATEMENTS OF OPERATIONS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30,
Ended June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net Revenues From Motion
Picture
Exploitation $ $ $ $
118 428 207 532
Less: Amortization of
Motion
Picture
Production and
Advertising
Costs 2 75 4 95
Income from Operations 116 353 203 437
Additional Payments
Accrual 0 34 18 30
Net Income $ $ $ $
116 387 221 467
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
TRI-STAR - DELPHI IV PRODUCTIONS
(A Joint Venture)
STATEMENTS OF CASH FLOWS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
221 467
Adjustments to reconcile Net
Income to net cash
provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 4 95
Accrued Distributions (37) (164)
toVenturers
Changes in Assets and
Liabilities:
Increase (Decrease) in
Payable to Delphi
Film Associates IV 23 (26)
Increase in Payable to 14 190
TriStar Pictures, Inc.
Increase in Receivable
from TriStar
Pictures, Inc. (19) (134)
(Distributor)
Increase in Motion
Picture Costs
Recoverable from
Additional Payments (18) (30)
Net Cash Provided by
Operating Activities 188 398
Cash Flow From Financing
Activities:
Distributions to Venturers
(188) (398)
Net Cash Used by
Financing Activities (188) (398)
Net Change in Cash 0 0
Cash at beginning of period
0 0
Cash at end of period $ $
0 0
See accompanying notes to the financial statements.
</TABLE>
<PAGE>
TRISTAR - DELPHI IV PRODUCTIONS
(A Joint Venture)
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.
They do not include all information and notes required by
generally accepted accounting principles for complete
financial statements. There has been no material change in
the information disclosed in the notes to financial
statements of the Joint Venture included in the Annual
Report on Form 10-K of Delphi Film Associates IV (the
"Partnership") for the year ended December 31, 1995. The
information furnished includes all adjustments which are, in
the opinion of management, necessary to present fairly the
financial position of the Joint Venture as of June 30, 1996
and the results of its operations and cash flows for the
periods ended June 30, 1996 and 1995. Results of
operations for the period ended June 30, 1996 are not
necessarily indicative of the results that may be expected
for the entire fiscal year.
2. Current Operations
All fifteen films in which the Joint Venture has an
interest have completed their theatrical release and are
being distributed in various ancillary markets. For the
three
and six month periods ended June 30, 1996, the Joint
Venture is reporting net revenue of $118,000 and $207,000,
respectively, due primarily to the performance of its films
in the worldwide free television market. For the six month
period ended June 30, 1996, the Joint Venture has recorded
an increase in the Additional Payment accrual of $18,000 due
to an increase in the estimated distribution fee to be
earned by its Distributor.
For the three and six month periods ended June 30,
1995, the Joint Venture reported net revenue of $428,000 and
$532,000, respectively, due primarily to the performance of
its films in the worldwide free television, worldwide pay
television and international theatrical markets. For the
six month period ended June 30, 1995, the Joint Venture
recorded an increase in the Additional Payment accrual of
$30,000 due to an increase in the estimated distribution fee
to be earned by its Distributor.
3. Additional Information
Additional information, including the audited year end
1995 Financial Statements and the Summary of Significant
Accounting Policies, is included in the Annual Report on
Form 10-K of the Partnership for the year ended December 31,
1995.
<PAGE>
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
<TABLE>
<CAPTION>
EXHIBIT
NUMBERDESCRIPTIONPAGE NUMBER
<S> <C>
<C>
27 Financial Data Schedule
</TABLE>
B). Reports on Form 8-K
None
<PAGE>
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.
DELPHI FILM ASSOCIATES IV
A New York Limited Partnership
By: THE DELPHI COMPANY,
General Partner
By: ML Film Entertainment
Inc.,
Managing Partner
August 12, 1996 /s/ Diane T.
Herte
Date Diane T. Herte
Treasurer of the Managing
Partner of the
General Partner
(principal financial officer
and principal
accounting officer of the
Registrant)
August 12, 1996 /s/ Steven N.
Baumgarten
Date Steven N. Baumgarten
Director and Vice President of
the Managing Partner
of the General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial
information extracted from Balance Sheets and Statement of
Operations for the second quarter ended June 30, 1996 Form
10Q of Delphi Film Associates IV and is qualified in its
entirety by reference to such financial statements.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 146,000
<SECURITIES> 1,342,000
<RECEIVABLES> 1,450,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,951,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,894,000
<TOTAL-LIABILITY-AND-EQUITY> 2,951,000
<SALES> 0
<TOTAL-REVENUES> 34,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 155,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 137,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 137,000
<EPS-PRIMARY> 17.00
<EPS-DILUTED> 0
</TABLE>
