FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period 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 0-17091
CSA Income Fund Limited Partnership II
(Exact name of registrant as specified in its charter)
Massachusetts 04-2932178
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
22 Batterymarch St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip Code)
(617) 357-1700
(Registrant's telephone number, including area code)
Former name, former address and former fiscal year,
if changed since last report
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 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>
PART I - FINANCIAL INFORMATION
CSA INCOME FUND LIMITED PARTNERSHIP II
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 1996
(UNAUDITED) AND DECEMBER 31, 1995
______________________________________________________________________
<CAPTION>
(Unaudited)
June 30, December 31,
1996 1995
<S> <C> <C>
Assets
Cash and cash equivalents $ 158,732 $ 1,021,366
Rentals receivable 51,505 21,109
Accounts receivable - affiliates 78,669 133,277
Sales proceeds receivable - 46,367
Rental equipment, at cost 6,261,825 6,996,398
Less accumulated depreciation (3,865,838) (5,217,222)
Net rental equipment 2,395,987 1,779,176
Total assets $ 2,684,893 $ 3,001,295
Liabilities and partners' capital
Accrued management and
reimbursable fees $ 22,255 $ 17,710
Accounts payable 10,281 14,495
Deferred income 6,832 4,836
Notes Payable 833,859 803,137
Limited recourse notes payable 75,070 71,382
Total liabilities 948,297 911,560
Partners' capital:
General Partner (deficit):
Capital contributions 1,000 1,000
Cumulative net gain (loss) 2,827 (613)
Cumulative cash distributions (161,081) (154,111)
(157,254) (153,724)
Limited Partners (78,785 units):
Capital contributions,
net of offering costs 17,563,265 17,563,265
Cumulative net gain (loss) 279,932 (60,615)
Cumulative cash distributions (15,949,347) (15,259,191)
1,893,850 2,243,459
Total Partners' capital 1,736,596 2,089,735
Total liabilities and
partners' capital $ 2,684,893 $ 3,001,295
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS SIX MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 502,923 $ 454,938 $ 887,608 $ 1,131,937
Interest income 3,678 17,041 13,115 29,497
Gain on sale
of equipment 34,629 20,941 35,053 41,520
Total revenues 541,230 492,920 935,776 1,202,954
Costs and expenses:
Depreciation 274,103 251,095 464,976 673,580
Interest 22,518 17,864 44,540 36,968
Management fees 25,146 22,805 44,380 56,596
General and
administrative 14,148 20,684 37,893 42,200
Total expenses 335,915 312,448 591,789 809,344
Net income $ 205,315 $ 180,472 $ 343,987 $ 393,610
Net income allocation:
General Partner $ 2,053 $ 1,805 $ 3,440 $ 3,936
Limited Partners 203,262 178,667 340,547 389,674
$ 205,315 $ 180,472 $ 343,987 $ 393,610
Net income per
Limited Partnership
Unit $ 2.58 $ 2.27 $ 4.32 $ 4.95
Number of Limited
Partnership Units 78,785 78,785 78,785 78,785
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS SIX MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 549,288 $ 564,776 $ 911,813 $ 1,164,649
Cash paid for
operating and
management expenses (43,131) (75,672) (81,942) (193,078)
Interest paid (14,564) (9,363) (28,444) (21,664)
Interest received 3,678 17,041 13,115 29,497
Net cash from
operations 495,271 496,782 814,542 979,404
Cash flow from
investments:
Sale of equipment 75,910 275,910 132,199 839,090
Purchase of
equipment (1,099,362) - (1,146,657) -
Net cash from
(used by)
investments (1,023,452) 275,910 (1,014,458) 839,090
Cash flows from
financing:
Proceeds from
notes payable 318,056 - 318,056 -
Repayment of
notes payable (155,803) (143,687) (283,646) (525,023)
Payment of cash
distributions (348,564) (348,564) (697,128) (697,128)
Net cash used
by financing (186,311) (492,251) (662,718) (1,222,151)
Net change in cash
and cash
equivalents (714,492) 280,441 (862,634) 596,343
Cash and cash
equivalents
at beginning of
period 873,224 1,106,147 1,021,366 790,245
Cash and cash
equivalents
at end of period $ 158,732 $ 1,386,588 $ 158,732 $ 1,386,588
</TABLE
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
NOTE TO FINANCIAL STATEMENTS
______________________________________________________________________
The quarterly financial statements have been prepared by the
Partnership without audit. Certain information and footnote
disclosures normally included in the annual financial statements have
been condensed or omitted from the accompanying statements. For such
information, reference should be made to the financial statements and
notes thereto included in the Partnership's annual report on Form 10-K
for the year ended December 31, 1995.
In the General Partner's opinion, the unaudited financial statements
reflect all adjustments necessary to present fairly the financial
position of CSA Income Fund Limited Partnership II as of June 30, 1996
and December 31, 1995 and the results of operations and cash flows for
the periods presented therein.
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
______________________________________________________________________
Gross rental income was $502,923 and $454,938 and net income was
$205,315 and $180,472 for the quarters ended June 30, 1996 and 1995,
respectively. For the six months ended June 30, 1996 and June 30,
1995, gross rental income was $887,608 and $1,131,937 and net income
was $343,987 and $393,610, respectively. Gross rental income and net
income increased slightly during the three months ended June 30, 1996
due primarily to the addition of new equipment as the Partnership
selectively continues to seek out lease investment opportunities. For
the six month periods, the decrease in gross rental income is
attributable to the expected occurrence of reduced rental rates for
re-leased equipment and to the ongoing sale of equipment from the
Partnership's portfolio partially offset by the new lease activity in
the second quarter.
The Partnership generated $946,741 from operations and sale of
equipment during the six months ended June 30, 1996. This cash and
amounts on hand were used to purchase equipment and to make
distributions to the partners. Equipment purchases were $1,146,657 and
cash distributions of $697,128 were paid to the partners.
The Partnership's results of operations and liquidity in future
periods will be dependent upon the addition of leased equipment, the
sale and/or release of equipment as it comes off lease and the
level of debt service.
The Partnership paid a quarterly distribution to the Limited Partners
in the amount of $4.38 per unit on May 15, 1996. To date, the
Partnership has made cash distributions to the Limited Partners
ranging from 80% to 89% of their initial investment, depending on when
the Limited Partner entered the Partnership. The objective of the
Partnership is to return the Limited Partners' investment through
current cash distributions and provide a return on investment by
continued distributions for as long as the equipment continues to be
leased. However, revenues generated from the Partnership from lease
renewals and remarketings after the initial lease term have been lower
than anticipated as a result of rapid technological obsolescence in
high technology equipment. As a result, the General Partner presently
estimates that the continued cash distributions may not fully return
the entire initial investment of the Limited Partners and/or a return
thereon. The General Partner will continue to report on the Limited
Partners' return of investment with each cash distribution.
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
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 - Exhibit 27. Financial Data Schedule.
(b) Reports on Form 8-K - No reports have been filed on Form 8-K
during this quarter.
<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.
CSA Income Fund Limited
Partnership II (Registrant)
By its General Partner,
CSA Income Funds, Inc.
Date: August 9, 1996 /s/ J. Frank Keohane
President and
Principal Executive Officer
Date: August 9, 1996 /s/ Richard F. Sullivan
Vice President
Principal Accounting and
Finance Officer
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial informationextracted form CSA Income
Fund Limited Partnership II's Statement of Financial Position as of June 30,
1996 and Statement of Operations for the six months then ended and is qualified
inits entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 158,732
<SECURITIES> 0
<RECEIVABLES> 130,174
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 6,261,825
<DEPRECIATION> 3,865,838
<TOTAL-ASSETS> 2,684,893
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,736,596
<TOTAL-LIABILITY-AND-EQUITY> 2,684,893
<SALES> 0
<TOTAL-REVENUES> 935,776
<CGS> 0
<TOTAL-COSTS> 509,356
<OTHER-EXPENSES> 37,893
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 44,540
<INCOME-PRETAX> 343,987
<INCOME-TAX> 0
<INCOME-CONTINUING> 343,987
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 343,987
<EPS-PRIMARY> 4.32
<EPS-DILUTED> 4.32
<FN>
<F1> The Registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
