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, 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 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,
1997 1996
<S> <C> <C>
ASSETS
Cash $ $
280 57
Short-Term Investments 1,250 991
Receivable from Columbia-Delphi
IV
Productions 1,081 890
Receivable from Tri-Star-Delphi
IV
Productions 344 736
Interest in Motion Picture
Venture-
Columbia-Delphi IV
Productions 11 13
Total $ $
Assets 2,966 2,687
LIABILITIES AND PARTNERS'
CAPITAL
Liabilities:
Accrued Expenses and Accounts $ $
Payable 50 78
Total
Liabilities 50 78
Partners' Capital (Note 2):
General Partner 74 71
Limited Partners
2,842 2,538
Total
Partners' Capital 2,916 2,609
Total
Liabilities and Partners'
$ $
Capital 2,966 2,687
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,
1997
1996 1997 1996
<S> <C> <C> <C> <C>
Interest Income $ $ $ $
15 17 28 34
Expenses:
Operating Expenses
82 91 149 155
82 91 149 155
Loss before Share of
Profit in
Motion Picture (67) (74) (121) (121)
Ventures
Share of Profit in
Motion
Picture Venture--
Columbia-
Delphi IV Productions 124 75 344 200
Share of Profit in
Motion Picture
Venture--Tri-Star-
Delphi IV Productions
0 38 84 58
Net Profit $ $ $ $
57 39 307 137
Net Profit Per Unit of
Limited
Partnership Interest $ $ $ $
(8,000 units) 7 5 38 17
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,
1997 1996
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Profit $ $
307 137
Adjustments to reconcile Net
Profit to net cash
provided by operating
activities:
Share of Profit in Motion (428) (258)
Picture Ventures
Distributions from Joint 430 258
Ventures
Changes in Assets and
Liabilities:
Decrease (Increase) in
Receivables from
Joint Ventures, net 201 (50)
Decrease in Accrued
Expenses and Accounts
Payable
(28) (11)
Net Cash Provided by
Operating Activities 482 76
Cash Flow From Investing
Activities:
Purchases of Short-Term (4,231) (2,121)
Investments
Redemptions of Short-Term
Investments 3,972 2,006
Net Cash Used by Investing
Activities (259) (115)
Increase (Decrease) In Cash 223 (39)
Cash at beginning of period
57 185
Cash at end of period $ $
280 146
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, 1996. 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, 1997
and the results of operations and cash flows for the periods
ended June 30, 1997 and 1996. Results of operations for the
three and six month periods ended June 30, 1997 are not
necessarily indicative of the results that may be expected
for the entire fiscal year.
2. Current Operations
As of June 30, 1997, 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.
The Partnership received approximately $409,000 in
February 1997 representing its share of the Tri-Star Joint
Venture's Additional Payment relating to one film.
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
1996 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, 1996 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,
1997, the Partnership held cash of approximately $280,000
and short-term investments of approximately $1,250,000.
The Partnership has been evaluating the value of its
interest in its film assets for the purpose of possibly
selling that interest and liquidating the Partnership. The
General Partner anticipates that the Partnership may be
liquidated in late 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. Cash distributions as a result of
the liquidation may be made to the partners to the extent,
and only to the extent, the proceeds from the sale of the
Partnership's interest in the film assets in connection with
the liquidation are in excess of the Distributors'
entitlement to the recoupment of the Additional Payments and
a reserve for the Partnership's remaining obligations and
operating expenses.
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 revenue received by the Partnership (for other than
Unrecouped Films) 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 June 30, 1997
have aggregated $3,845 per unit (76.9% 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, 1997, the Columbia
Joint Venture had
a net profit of which the Partnership's share was
approximately $124,000, 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 $0. In
addition, the Partnership earned approximately $15,000 of
interest income from its short-term investments and incurred
approximately $82,000 of expenses from its operations,
resulting in an overall net profit to the Partnership of
approximately $57,000.
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 six months ended June 30, 1997, the Columbia
Joint Venture had a net profit of which the Partnership's
share was approximately $344,000, 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 $84,000 due primarily to the profitable
results of certain films. In addition, the Partnership
earned approximately $28,000 of interest income from its
short-term investments and incurred approximately $149,000
of expenses from its operations, resulting in an overall net
profit to the Partnership of approximately $307,000.
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.
The Partnership's interest income and total expenses for
the three and six month periods ended June 30, 1997 as
compared with the corresponding periods in 1996 was
virtually unchanged.
<PAGE>
COLUMBIA-DELPHI IV PRODUCTIONS
(A Joint Venture)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1997 1996
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization
of $164,123 and $164,114, $ 63 $
respectively 72
Receivable from Columbia
Pictures
(Distributor)
6,721 5,974
Total $ 6,784 $
Assets 6,046
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to Columbia Pictures $ 5,640 $
Industries, Inc. 5,084
Payable to Delphi Film
Associates IV 1,081 890
Total
Liabilities 6,721 5,974
Venturers' Capital:
Columbia Pictures Industries, 52 59
Inc.
Delphi Film Associates IV
11 13
Total
Venturers' Capital 63 72
Total
Liabilities and Venturers'
$ 6,784 $
Capital 6,046
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,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Net Revenues From Motion
Picture Exploitation $ $ $ $
581 318 1,603 919
Less: Amortization
(Recapture) of
Motion Picture
Production
and
Advertising Costs 3 (31) 9 2
Net Income $ $ $ $
578 349 1,594 917
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,
1997 1996
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
1,594 917
Adjustments to reconcile Net
Income to
net cash provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 9 2
Accrued Distributions (747) 626
toVenturers
Changes in Assets and
Liabilities:
Increase in Payable to
Delphi Film
Associates IV 191 27
Increase (Decrease) in
Payable to Columbia
Pictures Industries, Inc. 556 (51)
(Increase) Decrease in
Receivable from
Columbia Pictures
(Distributor) (747) 24
Net Cash Provided by Operating
Activities 856 1,545
Cash Flow from Financing
Activities:
Distributions to Venturers
(856) (1,545)
Net Cash Used by Financing
Activities (856) (1,545)
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, 1996. 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, 1997
and the results of its operations and cash flows for the
periods ended June 30, 1997 and 1996. Results of operations
for the period ended June 30, 1997 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, 1997, the Joint
Venture is reporting net revenue of $581,000 and $1,603,000,
respectively, due primarily to the performance of certain
films in the domestic home video, worldwide free and pay
television markets.
For the three and six month periods ended June 30,
1996, the Joint Venture reported 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.
3. Additional Information
Additional information, including the audited year end
1996 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,
1996.
<PAGE>
TRI-STAR -DELPHI IV PRODUCTIONS
(A Joint Venture)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
June December
30, 31,
1997 1996
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization of
$108,514 and $108,490, $ $
respectively 61 85
Motion Picture Costs Recoverable
from
Additional Payments 1,144 1,853
Receivable from TriStar
Pictures, Inc.
(Distributor)
1,053 913
Total $ 2,258 $
Assets 2,851
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to TriStar Pictures, $ $
Inc. 1,853 2,030
Payable to Delphi Film
Associates IV 344 736
Total
Liabilities 2,197 2,766
Venturers' Capital:
TriStar Pictures, Inc. 61 85
Delphi Film Associates IV
0 0
Total
Venturers' Capital 61 85
Total
Liabilities and Venturers'
$ $
Capital 2,258 2,851
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,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Net Revenues From Motion
Picture
Exploitation $ $ $ $
93 118 464 207
Less: Amortization of
Motion
Picture
Production and
Advertising
Costs 5 2 24 4
Income from Operations 88 116 440 203
Additional Payments
Accrual 0 0 0 18
Net Income $ $ $ $
88 116 440 221
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,
1997 1996
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
440 221
Adjustments to reconcile Net
Income to net cash
provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 24 4
Accrued Distributions (140) (37)
toVenturers
Changes in Assets and
Liabilities:
(Decrease) Increase in
Payable to Delphi
Film Associates IV (392) 23
(Decrease) Increase in
Payable to TriStar
Pictures, Inc. (177) 14
Increase in Receivable
from TriStar
Pictures, Inc. (140) (19)
(Distributor)
Decrease (Increase) in
Motion Picture Costs
Recoverable from
Additional Payments 709 (18)
Net Cash Provided by
Operating Activities 324 188
Cash Flow From Financing
Activities:
Distributions to Venturers
(324) (188)
Net Cash Used by
Financing Activities (324) (188)
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, 1996. 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, 1997
and the results of its operations and cash flows for the
periods ended June 30, 1997 and 1996. Results of
operations for the period ended June 30, 1997 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, 1997, the Joint Venture
is reporting net revenue of $93,000 and $464,000,
respectively, due primarily to the performance of its films
in the worldwide free television market. The Joint Venture
received approximately $709,000 in February 1997
representing the Joint Venture's Additional Payment relating
to one film.
For the three and six month periods ended June 30,
1996, the Joint Venture reported 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
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.
3. Additional Information
Additional information, including the audited year end
1996 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,
1996.
<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 13, 1997 /s/ Roger F. Castoral, Jr.
Date Roger F. Castoral, Jr.
Vice President and Treasurer
of the
Managing Partner of the
General Partner
(principal financial officer
and principal
accounting officer of the
Registrant)
August 13, 1997 /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, 1997 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-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 280,000
<SECURITIES> 1,250,000
<RECEIVABLES> 1,425,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,966,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,916,000
<TOTAL-LIABILITY-AND-EQUITY> 2,966,000
<SALES> 0
<TOTAL-REVENUES> 28,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 149,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 307,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 307,000
<EPS-PRIMARY> 38.00
<EPS-DILUTED> 0
</TABLE>
