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 March 31, 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>
March December
31, 31,
1996 1995
<S> <C> <C>
ASSETS
Cash $ $
124 185
Short-Term Investments 1,291 1,227
Receivable from Columbia-Delphi
IV
Productions 693 623
Receivable from Tri-Star-Delphi
IV
Productions 792 777
Interest in Motion Picture
Venture-
Columbia-Delphi IV
Productions 13 13
Total $ $
Assets 2,913 2,825
LIABILITIES AND PARTNERS'
CAPITAL
Liabilities:
Accrued Expenses and Accounts $ $
Payable 58 68
Total
Liabilities 58 68
Partners' Capital (Note 2):
General Partner 74 73
Limited Partners
2,781 2,684
Total
Partners' Capital 2,855 2,757
Total
Liabilities and Partners'
$ $
Capital 2,913 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 Ended March 31,
1996
1995
<S> <C> <C>
Interest Income $ $
17 21
Expenses:
Management Fee 0 100
Operating Expenses
64 3
64 103
Loss before Share of
Profit in
Motion Picture (47) (82)
Ventures
Share of Profit in
Motion
Picture Venture--
Columbia-
Delphi IV Productions 125 77
Share of Profit in
Motion Picture
Venture--Tri-Star-
Delphi IV Productions
20 10
Net Profit $ $
98 5
Net Profit Per Unit of
Limited
Partnership Interest $ $
(8,000 units) 12 1
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 Three Months Ended March 31,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Profit $ $
98 5
Adjustments to reconcile Net
Profit to net cash
provided (used) by operating
activities:
Share of Profit in Motion (145) (87)
Picture Ventures
Distributions from Joint 145 95
Ventures
Changes in Assets and
Liabilities:
(Increase) Decrease in
Receivables from
Joint Ventures, net (85) 15
Decrease in Accrued
Expenses and Accounts
Payable (10) (27)
Increase in Prepaid
Expense 0 (300)
Net Cash Provided (Used)
by Operating
Activities
3 (299)
Cash Flow From Investing
Activities:
Purchases of Short-Term (297) (116)
Investments
Redemptions of Short-Term
Investments 233 0
Net Cash Used by Investing
Activities (64) (116)
Decrease In Cash (61) (415)
Cash at beginning of period
185 473
Cash at end of period $ $
124 58
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 March 31, 1996
and the results of operations and cash flows for the periods
ended March 31, 1996 and 1995. Results of operations for
the period ended March 31, 1996 are not necessarily
indicative of the results that may be expected for the
entire fiscal year.
2. Current Operations
As of March 31, 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 March 31, 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 March 31,
1996, the Partnership held cash of approximately $124,000
and short-term investments of approximately $1,291,000.
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, on such schedule. Upon the
ultimate sale of the film assets, the Partnership will
commence taking steps to liquidate and dissolve. 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 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 March 31,
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 March 31, 1996, the Columbia
Joint Venture had
a net profit of which the Partnership's share was
approximately $125,000, 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 $20,000 due primarily to the profitable
results of certain films. In addition, the Partnership
earned approximately $17,000 of interest income from its
short-term investments and incurred approximately $64,000 of
expenses from its operations, resulting in an overall net
profit to the Partnership of approximately $98,000.
For the three months ended March 31, 1995, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $77,000, 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 $10,000 due primarily to the profitable
results of certain films. In addition, the Partnership
earned approximately $21,000 of interest income from its
short-term investments and incurred approximately $103,000
of expenses from its operations, resulting in an overall net
profit to the Partnership of approximately $5,000.
The decrease in interest income for the three month
period ended March 31, 1996 as compared with the
corresponding period 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 month period ended March 31, 1996 as compared with
the corresponding period 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>
December
March 31, 31,
1996 1995
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization
of $164,137 and $164,104, $ 49 $
respectively 82
Receivable from Columbia
Pictures
(Distributor)
6,837 6,278
Total $ 6,886 $
Assets 6,360
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to Columbia Pictures $ 6,144 $
Industries, Inc. 5,655
Payable to Delphi Film
Associates IV 693 623
Total
Liabilities 6,837 6,278
Venturers' Capital:
Columbia Pictures Industries, 36 69
Inc.
Delphi Film Associates IV
13 13
Total
Venturers' Capital 49 82
Total
Liabilities and Venturers'
$ 6,886 $
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 Ended March 31,
1996 1995
<S> <C> <C>
Net Revenues From Motion
Picture Exploitation $ $
601 1,110
Less: Amortization of
Motion
Picture
Production and
Advertising
Costs 33 158
Income from Operations 568 952
Additional Payments
Accrual 0 175
Net Income $ $
568 1,127
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 Three Months Ended March 31,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
568 1,127
Adjustments to reconcile Net
Income to
net cash provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 33 158
Accrued Distributions (78) (306)
toVenturers
Changes in Assets and
Liabilities:
Increase (Decrease) in
Payable to Delphi
Film Associates IV 70 (12)
Increase in Payable to
Columbia Pictures
Industries, Inc. 489 318
Increase in Receivable from
Columbia
Pictures (Distributor) (559) (131)
Increase in Motion Picture
Costs
Recoverable from
Additional Payments 0 (175)
Net Cash Provided by Operating
Activities 523 979
Cash Flow from Financing
Activities:
Distributions to Venturers
(523) 979
Net Cash Used by Financing
Activities (523) (979)
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 March 31, 1996
and the results of its operations and cash flows for the
periods ended March 31, 1996 and 1995. Results of
operations for the period ended March 31, 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 month period ended March 31, 1996, the Joint Venture
is reporting net revenue of $601,000 due primarily to the
performance of certain films in the worldwide free and pay
television markets.
For the three month period ended March 31, 1995, the
Joint Venture reported net revenue of $1,110,000 due
primarily to the performance of certain films in the
worldwide free television market. For the three month
period ended March 31, 1995, the Joint Venture recorded an
increase of $175,000 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>
March December
31, 31,
1996 1995
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization of
$108,475 and $108,473, $ $
respectively 100 102
Motion Picture Costs Recoverable
from
Additional Payments 1,853 1,835
Receivable from TriStar
Pictures, Inc.
(Distributor)
1,127 1,083
Total $ 3,080 $
Assets 3,020
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to TriStar Pictures, $ $
Inc. 2,188 2,141
Payable to Delphi Film
Associates IV 792 777
Total
Liabilities 2,980 2,918
Venturers' Capital:
TriStar Pictures, Inc. 100 102
Delphi Film Associates IV
0 0
Total
Venturers' Capital 100 102
Total
Liabilities and Venturers'
$ $
Capital 3,080 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 Ended March 31,
1996 1995
<S> <C> <C>
Net Revenues From Motion
Picture
Exploitation $ $
89 104
Less: Amortization of
Motion
Picture
Production and
Advertising
Costs 2 20
Income from Operations 87 84
Additional Payments
Accrual
(Recapture)
18 (4)
Net Income $ $
105 80
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 Three Months Ended March 31,
1996 1995
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
105 80
Adjustments to reconcile Net
Income to net cash
provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 2 20
Accrued Distributions (62) 37
toVenturers
Changes in Assets and
Liabilities:
Increase (Decrease) in
Payable to Delphi
Film Associates IV 15 (3)
Increase (Decrease) in
Payable to TriStar
Pictures, Inc. 47 (34)
(Increase) Decrease in
Receivable from
TriStar Pictures, Inc. (44) 33
(Distributor)
(Increase) Decrease in
Motion Picture Costs
Recoverable from
Additional Payments (18) 4
Net Cash Provided by
Operating Activities 45 137
Cash Flow From Financing
Activities:
Distributions to Venturers
(45) (137)
Net Cash Used by
Financing Activities (45) (137)
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 March 31,
1996 and the results of its operations and cash flows for
the periods ended March 31, 1996 and 1995. Results of
operations for the period ended March 31, 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
month period ended March 31, 1996, the Joint Venture is
reporting net revenue of $89,000 due primarily to the
performance of its films in the worldwide free television
market. For the three month period ended March 31, 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 month period ended March 31, 1995, the
Joint Venture reported net revenue of $104,000 due primarily
to the performance of its films in the pay television
market. For the three month period ended March 31, 1995,
the Joint Venture recorded a decrease in the Additional
Payment accrual of $4,000 due to a decrease 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
May 10, 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)
May 10, 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 first quarter ended March 31, 1996 Form
10Q of Delphi Film Associates IV and is qualified in its
entirety by reference to such financial statements.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 124,000
<SECURITIES> 1,291,000
<RECEIVABLES> 1,485,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,913,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,855,000
<TOTAL-LIABILITY-AND-EQUITY> 2,913,000
<SALES> 0
<TOTAL-REVENUES> 17,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 64,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 98,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 98,000
<EPS-PRIMARY> 12.00
<EPS-DILUTED> 0
</TABLE>
