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, 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 0-17091
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
STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited)
September 30, December 31,
1997 1996
[CAPTION]
<TABLE>
<S> <C> <C>
Assets
Cash and cash equivalents $ 34,602 $ 556,920
Accounts receivable affiliates - 69,648
Rental equipment, at cost 3,809,499 5,509,177
Less accumulated depreciation (2,905,974) (3,613,329)
Net rental equipment 903,525 1,895,848
Total assets $ 938,127 $ 2,522,416
Liabilities and partners' capital
Liabilities:
Accrued management
and reimbursable fees $ 4,171 $ 9,758
Accounts payable affiliate 148,480 -
Accounts payable 6,679 11,226
Deferred income 2,720 3,202
Notes payable 389,374 1,126,931
Limited recourse notes payable - 78,049
Total liabilities 551,424 1,229,166
Partners' capital:
General Partner (deficit):
Capital contributions 1,000 1,000
Cumulative net income 54,390 22,769
Cumulative cash distributions (178,508) (168,052)
(123,118) (144,283)
Limited Partners (78,785 units):
Capital contributions,
net of offering costs 17,563,265 17,563,265
Cumulative net income 621,295 513,772
Cumulative cash distributions (17,674,739) (16,639,504)
509,821 1,437,533
Total Partners' capital 386,703 1,293,250
Total liabilities and
partners' capital $ 938,127 $ 2,522,416
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF OPERATIONS
(Unaudited)
Quarters Ended Nine Months Ended
September September September September
30, 1997 30, 1996 30, 1997 30, 1996
[CAPTION]
<TABLE>
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 244,953 $ 516,935 $1,002,695 $1,404,543
Interest income 326 1,364 5,184 14,479
Gain (loss) on
sale of equipment 359 12,189 (18,232) 47,242
Total revenues 245,638 530,488 989,647 1,466,264
Costs and expenses:
Depreciation 173,020 296,845 707,803 761,821
Interest 9,851 24,449 43,440 68,989
Management fees 13,223 25,847 51,110 70,227
General and
administrative 13,800 19,859 48,150 57,752
Total expenses 209,894 367,000 850,503 958,789
Net income $ 35,744 $ 163,488 $ 139,144 $ 507,475
Net income
allocation:
General Partner $ 359 $ 1,635 $ 31,621 $ 5,075
Limited Partners 35,385 161,853 107,523 502,400
$ 35,744 $ 163,488 $ 139,144 $ 507,475
Net income per
Limited Partnership
Unit $ .45 $ 2.05 $ 1.36 $ 6.38
Number of Limited
Partnership Units 78,785 78,785 78,785 78,785
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Quarters Ended Nine Months Ended
September September September September
30, 1997 30, 1996 30, 1997 30,1996
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 246,940 $ 508,661 $1,090,807 $1,432,037
Cash paid for
operating and
management expenses(28,584) 58,523) (109,394) (140,465)
Interest paid (9,851) (24,449) (43,440) (68,989)
Interest received 327 1,364 5,185 14,479
Net cash from
operations 208,832 427,053 943,158 1,237,062
Cash flow from
investments:
Sale of equipment 543 99,521 177,693 236,251
Purchase of equipment - (262,985) - (1,409,642)
Net cash from (used
by) investments 543 (163,464) 177,693 (1,173,391)
Cash flows from financing:
Change in amounts due
Affiliates 218,128 - 218,128 -
Proceeds from
notes payable - 429,071 - 747,127
Repayment of notes
payable (167,463) (233,243) (815,606) (516,889)
Payment of cash
distributions (348,562) (348,566)(1,045,691) (1,045,692)
Net cash from (used
by) financing (297,897) (152,738)(1,643,169) (815,454)
Net change in cash and
cash equivalents (88,522) 110,851 (522,318) (751,783)
Cash and cash
equivalents at
beginning of period 123,124 158,732 556,920 1,021,366
Cash and cash
equivalents at end
of period $ 34,602 $ 269,583 $ 34,602 $ 269,583
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
NOTE TO FINANCIAL STATEMENTS
The quarterly financial statements of the Partnership presented
herein are without audit except for the December 31, 1996 Balance
sheet information. 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, 1996.
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 30,1997 and September 30, 1996 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
Rental income was $244,953 and $516,935 and net income was $35,744
and $163,488 for the quarters ended September 30, 1997 and 1996,
respectively. For the nine months ended September 30, 1997 and
1996, rental income was $1,002,695 and $1,404,543 and net income
was $139,144 and $507,475, respectively. For the nine month period,
the decrease in 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
decreased rental revenue and the smaller gains on sale of equipment
in 1997 resulted in the decrease in net income from 1996.
The Partnership generated $1,120,851 in cash flow from operations
and the sale of equipment during the nine months ended September
30, 1997. This cash, cash on hand and a loan of $196,000 from the
General Partner were used to make distributions of $1,045,691 to
the partners and reduce debt by $815,606.
As part of the Partnership Wind-Up, effective November 1, 1997,
the Partnership sold all but three leases from the remaining
portfolio. Two of these three leases, both with K Mart Corporation,
are expected to be sold in December. The third lease of an Airplane
Engine with American West Airlines Inc. may require some additional
time to obtain the best return for the Limited Partners. The
General Partner will be communicating with the Limited Partners on
these leases in December.
The Partnership paid a quarterly distribution to the Limited
Partners in the amount of $4.38 per unit on August 15, 1997, and the
Partnership is paying another distribution on November 14, 1997 from
Wind-Up proceeds in the same amount as the August distribution.
There will be a final distribution(s) from the disposition of the
remaining three leases, possibly by the end of December. To date,
the Partnership has made cash distributions to the Limited Partners
ranging from 87% to 96% of their initial investment, depending on
when the Limited Partner entered the Partnership.
<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: 11/14/97 /s/ J. Frank Keohane
Principal Executive Officer
Date: 11/14/97 /s/ Richard P. Timmons
Controller
Principal Accounting and
Finance Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from CSA income
Fund Limited Partnership II's Statement of Financial Position as of September
30, 1997 and Statement of Operations for the nine months then ended and is
qualified in its entirely by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 34,602
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 3,809,499
<DEPRECIATION> 2,905,974
<TOTAL-ASSETS> 938,127
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 386,703
<TOTAL-LIABILITY-AND-EQUITY> 938,127
<SALES> 0
<TOTAL-REVENUES> 989,647
<CGS> 0
<TOTAL-COSTS> 758,913
<OTHER-EXPENSES> 48,150
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 43,440
<INCOME-PRETAX> 139,144
<INCOME-TAX> 0
<INCOME-CONTINUING> 139,144
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 139,144
<EPS-PRIMARY> 1.36
<EPS-DILUTED> 1.36
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Position
</FN>
</TABLE>
