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 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 0-17091
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 MARCH 31, 1997 (UNAUDITED) AND
DECEMBER 31, 1996
[CAPTION]
<TABLE>
March 31 1997 December 31, 1996
<S> <C> <C>
Assets
Cash and cash equivalents $ 21,961 $ 556,920
Accounts receivable-affiliates 314,621 69,648
Sales proceeds receivable 102,871
Rental equipment, at cost 4,740,590 5,509,177
Less accumulated depreciation (3,211,738) (3,613,329)
Net rental equipment 1,528,852 1,895,848
Total assets $ 1,968,305 $ 2,522,416
Liabilities and
partners' capital
Accrued management and
reimbursable fees $ 8,068 $ 9,758
Accounts payable 4,046 11,226
Deferred income 2,256 3,202
Notes payable 828,979 1,126,931
Limited recourse notes payable 80,040 78,049
Total liabilities 923,389 1,229,166
Partners' capital (deficit):
General Partner:
Capital contributions 1,000 1,000
Cumulative net income 53,999 22,769
Cumulative cash distributions (171,538) (168,052)
(116,397) (144,283)
Limited Partners (78,785 units):
Capital contributions,
net of offering costs 17,563,265 17,563,265
Cumulative net income 582,772 513,772
Cumulative cash distributions (16,984,582) (16,639,504)
1,161,455 1,437,533
Total Partners' capital 1,044,916 1,293,250
Total liabilities and
partners' capital $ 1,968,305 $ 2,522,416
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED
MARCH 31, 1997 AND 1996
[CAPTION]
<TABLE>
1997 1996
<S> <C> <C>
Revenues:
Rental income $ 395,863 $ 384,685
Interest income 3,710 9,437
Gain on sale of equipment 31 230 424
Total revenues 430,803 394,546
Costs and expenses:
Depreciation 276,772 190,873
Interest 17,906 22,022
Management fees 19,793 19,234
General and administrative 16,102 23,745
Total expenses 330,573 255,874
Net income $ 100,230 $ 138,672
Net income allocation:
General Partner $ 31,230 $ 1,387
Limited Partners 69,000 137,285
$ 100,230 $ 138,672
Net income per Limited
Partnership Unit $ .88 $ 1.74
Number of Limited Partnership
Units 78,785 78,785
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 1997
AND 1996
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Cash flows from operations:
Cash received from rental
of equipment $ 394,116 $ 362,525
Cash paid for operating and
management expenses (44,665) (38,811)
Interest paid (17,906) (13,880)
Interest received 3,710 9,437
Net cash from operations 335,255 319,271
Cash flows from investments:
Advances to/from affiliates (248,459)
Purchase of equipment (47,295)
Sale of equipment 19,284 56,289
Net cash from (used for)
investments (229,175) 8,994
Cash flows from financing:
Repayment of notes payable (295,962) (127,843)
Payment of cash distributions (345,078) (348,564)
Net cash used for financing (641,040) (476,407)
Net change in cash and
cash equivalents (534,960) (148,142)
Cash and cash equivalents
at beginning of period 556,920 1,021,366
Cash and cash equivalents
at end of period $ 21,961 $ 873,224
</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, 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 March 31, 1997
and March 31, 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
Gross rental income was $395,863 and $384,685 and net income was
$100,230 and $138,672 for the quarters ended March 31, 1997 and 1996,
respectively. The slight increase in gross rental income was due to the
new short term leases added to the portfolio during 1996. The decrease
in net income is attributable to the additional depreciation expense on
those leases added during 1996, as well as the expected occurrence of
reduced rental rates for re-leased equipment and to the sale of
equipment from the Partnership's portfolio.
The Partnership generated $354,539 in cash flow from operations and from
the sale of equipment during the three months ended March 31, 1997. This
cash and cash on hand were used primarily to make a cash distribution to
the Limited Partners and pay down debt. Notes payable was reduced by
$295,962 during the first quarter of 1997 and the cash distribution paid
to Limited Partners was $345,078. Of the $248,459 advances to affiliates
referred to in the Statement of Cash Flow, $240,000 was repaid to the
Partnership on April 14, 1997.
The General Partner is currently in the process of winding up the
affairs of the Partnership. In the 1996 Annual Report to the Limited
Partners, the General Partner expected to make a final wind up
distribution in May. However, the wind up process has taken longer than
originally anticipated and therefore the May distribution is the same as
prior distributions and the General Partner expects now to make a final
distribution upon the sale of the remaining Partnership leases and
equipment no later than August 15th.
The Partnership distributed $4.38 per Limited Partnership Unit on
February 15, 1997. To date, the Partnership has made cash distributions
to the Limited Partners ranging from 85% to 94% of their initial
investment, depending on when the Limited Partner entered the
Partnership. As a result of the review of the remaining leases and
equipment in the Partnership's portfolio, the General Partner in the
1996 Annual Report stated that the total Limited Partner return would be
approximately 92% to 101% of the Limited Partners' original investment.
A current review of the Partnership's remaining portfolio by the General
Partner indicates that Percentage may slightly increase.
<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 - There were no reports filed during the
first quarter of 1997.
<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: 05/15/97 /S/J. Frank Keohane, President
Principal Executive Officer
Date: 05/15/97 /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 March 31,
1997 and Statement of Operations for the three months then ended and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 21,961
<SECURITIES> 0
<RECEIVABLES> 417,492
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 4,740,590
<DEPRECIATION> 3,211,738
<TOTAL-ASSETS> 1,968,305
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,044,916
<TOTAL-LIABILITY-AND-EQUITY> 1,968,305
<SALES> 0
<TOTAL-REVENUES> 430,803
<CGS> 0
<TOTAL-COSTS> 296,565
<OTHER-EXPENSES> 16,102
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17,906
<INCOME-PRETAX> 100,230
<INCOME-TAX> 0
<INCOME-CONTINUING> 100,230
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 100,230
<EPS-PRIMARY> .88
<EPS-DILUTED> .88
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
