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 September 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 SEPTEMBER 30, 1996
(UNAUDITED) AND DECEMBER 31, 1995
______________________________________________________________________
<CAPTION>
(Unaudited)
September 30, December 31,
1996 1995
<S> <C> <C>
Assets
Cash and cash equivalents $ 269,583 $ 1,021,366
Rentals receivable 65,565 21,109
Accounts receivable affiliates 77,515 133,277
Sales proceeds receivable 525 46,367
Rental equipment, at cost 5,619,837 6,996,398
Less accumulated depreciation (3,355,475) (5,217,222)
Net rental equipment 2,264,362 1,779,176
Total assets $ 2,677,550 $ 3,001,295
Liabilities and partners' capital
Liabilities:
Accrued management
and reimbursable fees $ 8,885 $ 17,710
Accounts payable 10,834 14,495
Deferred income 1,556 4,836
Notes payable 1,028,650 803,137
Limited recourse notes payable 76,107 71,382
Total liabilities 1,126,032 911,560
Partners' capital:
General Partner (deficit):
Capital contributions 1,000 1,000
Cumulative net income (loss) 4,462 (613)
Cumulative cash distributions (164,568) (154,111)
(159,106) (153,724)
Limited Partners (78,785 units):
Capital contributions,
net of offering costs 17,563,265 17,563,265
Cumulative net income (loss) 441,785 (60,615)
Cumulative cash distributions (16,294,426) (15,259,191)
1,710,624 2,243,459
Total Partners' capital 1,551,520 2,089,735
Total liabilities and
partners' capital $ 2,677,550 $ 3,001,295
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTH
PERIODS ENDED SEPTEMBER 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS NINE MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 516,935 $ 514,040 $ 1,404,543 $ 1,645,977
Interest income 1,364 16,962 14,479 46,459
Gain on sale
of equipment 12,189 84,155 47,242 125,675
Total revenues 530,488 615,157 1,466,264 1,818,111
Costs and expenses:
Depreciation 296,845 238,069 761,821 911,649
Interest 24,449 16,485 68,989 53,453
Management fees 25,847 25,703 70,227 82,299
General and
administrative 19,859 25,309 57,752 67,509
Total expenses 367,000 305,566 958,789 1,114,910
Net income $ 163,488 $ 309,591 $ 507,475 $ 703,201
Net income
allocation:
General Partner $ 1,635 $ 3,096 $ 5,075 $ 7,032
Limited Partners 161,853 306,495 502,400 696,169
$ 163,488 $ 309,591 $ 507,475 $ 703,201
Net income per
Limited Partnership
Unit $ 2.05 $ 3.89 $ 6.38 $ 8.84
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 NINE MONTH
PERIODS ENDED SEPTEMBER 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS NINE MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 508,661 $ 475,428 $ 1,432,037 $ 1,640,077
Cash paid for
operating and
management expenses (58,523) (41,696) (140,465) (234,774)
Interest paid (24,449) (8,817) (68,989) (30,481)
Interest received 1,364 16,962 14,479 46,459
Net cash from
operations 427,053 441,877 1,237,062 1,421,281
Cash flow from
investments: 99,521 67,050 236,251 906,140
Purchase of equipment (262,985) (179,191) (1,409,642) (179,191)
Net cash from (used
by) investments (163,464) (112,141) (1,173,391) 726,949
Cash flows from financing:
Proceeds from
notes payable 429,071 89,426 747,127 89,426
Repayment of notes
payable (233,243) (102,957) (516,889) (627,980)
Payment of cash
distributions (348,566) (348,564) (1,045,692) (1,045,692)
Net cash from (used
by) financing (152,738) (362,095) (815,454) (1,584,246)
Net change in cash and
cash equivalents 110,851 (32,359) (751,783) 563,984
Cash and cash equivalents
at beginning of
period 158,732 1,386,588 1,021,366 790,245
Cash and cash equivalents
at end of period $ 269,583 $ 1,354,229 $ 269,583 $1,354,229
</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 September 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 $516,935 and $514,040 and net income was
$163,488 and $309,591 for the quarters ended September 30, 1996 and
1995, respectively. For the nine months ended September 30, 1996 and
September 30, 1995, gross rental income was $1,404,543 and $1,645,977
and net income was $507,475 and $703,201, respectively. For the nine
month period, 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. The lower rental revenue and the lower level of gains on
sale of equipment in 1996 was offset by correspondingly lower levels
of depreciation, resulting in a slight decrease in net income from 1995.
The Partnership generated $1,473,313 in cash flow from operations and
the sale of equipment during the nine months ended September 30, 1996.
This cash was used to make distributions to the partners, purchase
equipment and pay down debt. Cash distributions of $1,045,692 were
paid to partners, the Partnership acquired $1,409,642 of additional
equipment and notes payable was reduced by $516,889.
The intended life of the Partnership contained in the original
prospectus was seven to ten years. The Partnership has been in
operation in excess of nine years and the General Partner
feels that it is in the best interest of the Partnership and
Limited Partners to begin the wind-up of the Partnership during the
fourth quarter of 1996. The General Partner will be analyzing all
remaining leases so that they can be remarketed or sold at the maximum
potential return. This process will extend into 1997, when the final
distribution is projected to be paid.
The Partnership paid a quarterly distributions to the Limited Partners
in the amount of $4.38 per unit on August 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 this investment by
continued distributions as long as the equipment continues to be
leased. However, revenues generated by the Partnership from lease
renewals and remarketings after the initial lease terms were lower than
anticipated as a result of rapid technological obsolescence in high
technology equipment. Consequently, the General Partner previously estimated
that the continued cash distributions may not fully return the entire
initial investment to all Limited Partners and/or a return thereon. Currently,
it is expected, but subject to the winding-up process, that total projected
returns will approximate 95% to 100% of the Limited Partners' initial
investment.
<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: November 14, 1996 /s/ J. Frank Keohane
President and
Principal Executive Officer
Date: November 14, 1996 /s/ Richard F. Sullivan
Vice President
Principal Accounting and
Finance Officer
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from CSA Income
Fund Limited Partnership II's Statement of Financial Position as of September
30, 1996 and Statement of Operations for the six months then ended and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 269583
<SECURITIES> 0
<RECEIVABLES> 143605
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 5619837
<DEPRECIATION> 3355475
<TOTAL-ASSETS> 2677550
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1551520
<TOTAL-LIABILITY-AND-EQUITY> 2677550
<SALES> 0
<TOTAL-REVENUES> 1466264
<CGS> 832048
<TOTAL-COSTS> 958789
<OTHER-EXPENSES> 57752
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 68989
<INCOME-PRETAX> 507475
<INCOME-TAX> 0
<INCOME-CONTINUING> 507475
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 507475
<EPS-PRIMARY> 6.38
<EPS-DILUTED> 6.38
<FN>
<F1>The Registrant maintains an unclassifed Statement of Financial Position.
</FN>
</TABLE>
