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, 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>
March December
31, 31,
1997 1996
<S> <C> <C>
ASSETS
Cash $ $
150 57
Short-Term Investments 1,297 991
Receivable from Columbia-Delphi
IV
Productions 1,052 890
Receivable from Tri-Star-Delphi
IV
Productions 406 736
Interest in Motion Picture
Venture-
Columbia-Delphi IV
Productions 12 13
Total $ $
Assets 2,917 2,687
LIABILITIES AND PARTNERS'
CAPITAL
Liabilities:
Accrued Expenses and Accounts $ $
Payable 58 78
Total
Liabilities 58 78
Partners' Capital (Note 2):
General Partner 73 71
Limited Partners
2,786 2,538
Total
Partners' Capital 2,859 2,609
Total
Liabilities and Partners'
$ $
Capital 2,917 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 Ended March 31,
1997
1996
<S> <C> <C>
Interest Income $ $
13 17
Expenses:
Operating Expenses
67 64
67 64
Loss before Share of
Profit in
Motion Picture (54) (47)
Ventures
Share of Profit in
Motion
Picture Venture--
Columbia-
Delphi IV Productions 220 125
Share of Profit in
Motion Picture
Venture--Tri-Star-
Delphi IV Productions
84 20
Net Profit $ $
250 98
Net Profit Per Unit of
Limited
Partnership Interest $ $
(8,000 units) 31 12
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,
1997 1996
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Profit $ $
250 98
Adjustments to reconcile Net
Profit to net cash
provided by operating
activities:
Share of Profit in Motion (304) (145)
Picture Ventures
Distributions from Joint 305 145
Ventures
Changes in Assets and
Liabilities:
Decrease (Increase) in
Receivables from
Joint Ventures, net 168 (85)
Decrease in Accrued
Expenses and Accounts
Payable
(20) (10)
Net Cash Provided by
Operating
Activities
399 3
Cash Flow From Investing
Activities:
Purchases of Short-Term (1,693) (297)
Investments
Redemptions of Short-Term
Investments 1,387 233
Net Cash Used by Investing
Activities (306) (64)
Increase (Decrease) In Cash 93 (61)
Cash at beginning of period
57 185
Cash at end of period $ $
150 124
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 March 31, 1997
and the results of operations and cash flows for the periods
ended March 31, 1997 and 1996. Results of operations for
the period ended March 31, 1997 are not necessarily
indicative of the results that may be expected for the
entire fiscal year.
2. Current Operations
As of March 31, 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 March 31,
1997, the Partnership held cash of approximately $150,000
and short-term investments of approximately $1,297,000.
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 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 March 31,
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 March 31, 1997, the Columbia
Joint Venture had
a net profit of which the Partnership's share was
approximately $220,000, 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 one film. In addition, the Partnership earned
approximately $13,000 of interest income from its short-term
investments and incurred approximately $67,000 of expenses
from its operations, resulting in an overall net profit to
the Partnership of approximately $250,000.
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.
The Partnership's interest income and total expenses
for the three month period ended March 31, 1997 as compared
with the corresponding period in 1996 was virtually
unchanged.
<PAGE>
COLUMBIA-DELPHI IV PRODUCTIONS
(A Joint Venture)
BALANCE SHEETS
(000's Omitted)
Unaudited
<TABLE>
<CAPTION>
December
March 31, 31,
1997 1996
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization
of $164,120 and $164,114, $ 66 $
respectively 72
Receivable from Columbia
Pictures
(Distributor)
6,570 5,974
Total $ 6,636 $
Assets 6,046
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to Columbia Pictures $ 5,518 $
Industries, Inc. 5,084
Payable to Delphi Film
Associates IV 1,052 890
Total
Liabilities 6,570 5,974
Venturers' Capital:
Columbia Pictures Industries, 54 59
Inc.
Delphi Film Associates IV
12 13
Total
Venturers' Capital 66 72
Total
Liabilities and Venturers'
$ 6,636 $
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 Ended March 31,
1997 1996
<S> <C> <C>
Net Revenues From Motion
Picture Exploitation $ $
1,022 601
Less: Amortization of
Motion
Picture
Production and
Advertising
Costs 6 33
Net Income $ $
1,016 568
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,
1997 1996
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
1,016 568
Adjustments to reconcile Net
Income to
net cash provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 6 33
Accrued Distributions (596) (78)
toVenturers
Changes in Assets and
Liabilities:
Increase in Payable to
Delphi Film
Associates IV 162 70
Increase in Payable to
Columbia Pictures
Industries, Inc. 434 489
Increase in Receivable from
Columbia
Pictures (Distributor)
(596) (559)
Net Cash Provided by Operating
Activities 426 523
Cash Flow from Financing
Activities:
Distributions to Venturers
(426) (523)
Net Cash Used by Financing
Activities (426) (523)
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 March 31, 1997
and the results of its operations and cash flows for the
periods ended March 31, 1997 and 1996. Results of
operations for the period ended March 31, 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 month period ended March 31, 1997, the Joint Venture
is reporting net revenue of $1,022,000, due primarily to the
performance of certain films in the domestic home video,
worldwide free and pay television markets.
For the three month period ended March 31, 1996, the
Joint Venture reported net revenue of $601,000, 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>
March December
31, 31,
1997 1996
<S> <C> <C>
ASSETS
Motion Picture Production and
Advertising
Costs, net of accumulated
amortization of
$108,509 and $108,490, $ $
respectively 66 85
Motion Picture Costs Recoverable
from
Additional Payments 1,144 1,853
Receivable from TriStar
Pictures, Inc.
(Distributor)
1,230 913
Total $ 2,440 $
Assets 2,851
LIABILITIES AND VENTURERS'
CAPITAL
Liabilities:
Payable to TriStar Pictures, $ $
Inc. 1,968 2,030
Payable to Delphi Film
Associates IV 406 736
Total
Liabilities 2,374 2,766
Venturers' Capital:
TriStar Pictures, Inc. 66 85
Delphi Film Associates IV
0 0
Total
Venturers' Capital 66 85
Total
Liabilities and Venturers'
$ $
Capital 2,440 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 Ended March 31,
1997 1996
<S> <C> <C>
Net Revenues From Motion
Picture
Exploitation $ $
371 89
Less: Amortization of
Motion
Picture
Production and
Advertising
Costs 19 2
Income from Operations 352 87
Additional Payments
Accrual -- 18
Net Income $ $
352 105
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,
1997 1996
<S>
<C> <C>
Cash Flow From Operating
Activities:
Net Income $ $
352 105
Adjustments to reconcile Net
Income to net cash
provided by operating
activities:
Amortization of Motion Picture
Production and
Advertising Costs 19 2
Accrued Distributions (317) (62)
toVenturers
Changes in Assets and
Liabilities:
(Decrease) Increase in
Payable to Delphi
Film Associates IV (330) 15
(Decrease) Increase in
Payable to TriStar
Pictures, Inc. (62) 47
Increase in Receivable
from
TriStar Pictures, Inc. (317) (44)
(Distributor)
Decrease (Increase) in
Motion Picture Costs
Recoverable from
Additional Payments 709 (18)
Net Cash Provided by
Operating Activities 54 45
Cash Flow From Financing
Activities:
Distributions to Venturers
(54) (45)
Net Cash Used by
Financing Activities (54) (45)
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 March 31,
1997 and the results of its operations and cash flows for
the periods ended March 31, 1997 and 1996. Results of
operations for the period ended March 31, 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
month period ended March 31, 1997, the Joint Venture is
reporting net revenue of $371,000, 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 month period ended March 31, 1996, the
Joint Venture reported 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 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
May 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)
May 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 first quarter ended March 31, 1997 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-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 150,000
<SECURITIES> 1,297,000
<RECEIVABLES> 1,458,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,917,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,859,000
<TOTAL-LIABILITY-AND-EQUITY> 2,917,000
<SALES> 0
<TOTAL-REVENUES> 13,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 67,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 250,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 250,000
<EPS-PRIMARY> 31
<EPS-DILUTED> 0
</TABLE>
