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, 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
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 1997 (UNAUDITED) AND
DECEMBER 31, 1996
<CAPTION>
(Unaudited)
June 30, December 31,
1997 1996
<S> <C> <C>
Assets
Cash and cash equivalents $ 123,124 $ 556,920
Rentals receivable 356 -
Accounts receivable - affiliates 71,085 69,648
Rental equipment, at cost 3,809,499 5,509,177
Less accumulated depreciation (2,732,955) (3,613,329)
Net rental equipment 1,076,544 1,895,848
Total assets $ 1,271,109 $ 2,522,416
Liabilities and partners' capital
Accrued management and
reimbursable fees $ 7,851 9,758
Accounts payable 4,560 11,226
Deferred income 2,340 3,202
Notes Payable 556,837 1,126,931
Limited recourse notes payable - 78,049
Total liabilities 571,588 1,229,166
Partners' capital:
General Partner (deficit):
Capital contributions 1,000 1,000
Cumulative net gain 54,031 22,769
Cumulative cash distributions (175,024) (168,052)
(119,993) (144,283)
Limited Partners (78,785 units):
Capital contributions,
net of offering costs 17,563,265 17,563,265
Cumulative net gain 585,910 513,772
Cumulative cash distributions (17,329,661) (16,639,504)
819,514 1,437,533
Total Partners' capital 699,521 1,293,250
Total liabilities and
partners' capital $ 1,271,109 $ 2,522,416
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP II
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1997 AND 1996
<CAPTION>
Three months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 361,879 $ 502,923 $ 757,742 $ 887,608
Interest income 1,148 3,678 4,858 13,115
Gain (loss) on sale
of equipment (49,821) 34,629 (18,591) 35,053
Total revenues 313,206 541,230 744,009 935,776
Costs and expenses:
Depreciation 258,011 274,103 534,783 464,976
Interest 15,683 22,518 33,589 44,540
Management fees 18,094 25,146 37,887 44,380
General and
administrative 18,248 14,148 34,350 37,893
Total expenses 310,036 335,915 640,609 591,789
Net income $ 3,170 $ 205,315 $ 103,400 $ 343,987
Net income allocatio
General Partner $ 32 $ 2,053 $ 31,262 $ 3,440
Limited Partners 3,138 203,262 72,138 340,547
$ 3,170 $ 205,315 $ 103,400 $ 343,987
Net income per
Limited Partnership
Unit $ .04 $ 2.58 .92 $ 4.32
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, 1997 AND 1996
<CAPTION>
Three months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 449,750 $ 549,288 $ 843,867 $911,813
Cash paid for
operating and
management
expenses (36,145) (43,131) (80,810) (81,942)
Interest paid (15,683) (14,564) (33,589) (28,444)
Interest received 1,148 3,678 4,858 13,115
Net cash from
operations 399,070 495,271 734,326 814,542
Cash flow from
investments:
Advances from affiliates 244,973 - - -
Sale of equipment 157,866 75,910 177,150 132,199
Purchase of
equipment - (1,099,362) -(1,146,657)
Netcash from (used by)
investments 402,839 (1,023,452) 177,150(1,014,458)
Cash flows from financing:
Proceeds from
notes payable - 318,056 - 318,056
Repayment of notes
payable (352,181) (155,803) (648,143) (283,646)
Payment of cash
distributions (348,565) (348,564) (697,129) (697,128)
Net cash used by
financing (700,746) (186,311) (1,345,272) (662,718)
Net change in cash and
cash equivalents 101,163 (714,492) (433,796) (862,634)
Cash and cash equivalents
at beginning of
period 21,961 873,224 556,920 1,021,366
Cash and cash equivalents
at end of period $ 123,124 $ 158,732 $ 123,124 $ 158,732
</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 June 30, 1997
and 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 $361,879 and $502,923 and net income was $3,170
and $205,315 for the quarters ended June 30, 1997 and 1996, respectively.
For the six months ended June 30, 1997 and 1996, gross rental income was
$757,742 and $887,608 and net income was $103,400 and $343,987,
respectively. For the six month periods, the decrease in gross rental
income was due to the expected occurrence of leases expiring during the
period, reduced rental rates for re-leased equipment and a reduction in
the Partnership's equipment portfolio due to the ongoing sale of
equipment on expired leases. The decrease in net income for the six month
period was the result of the decrease in gross rental income, a loss on
the sale of equipment from one lease due to significant reductions in
residual value and the increases in depreciation expense related to the
1996 equipment acquisitions.
The Partnership generated $911,476 in cash flow from operations and sale
of equipment during the six months ended June 30, 1997. This cash and
cash on hand were used primarily to make cash distributions to the
Limited Partners of $697,129 and reduce debt by $648,143.
The General Partner is currently in the process of winding up the affairs
of the Partnership. This process has taken longer than originally
anticipated as the renewal and sale of certain significant lease
transactions have not been finalized. The General Partner now anticipates
dissolving the Partnership and issuing a final distribution by the end of
September. Due to this delay, the General Partner is making another 7%
distribution on August 15th which will reduce the intended final
distribution.
The Partnership paid a quarterly distribution to the Limited Partners in
the amount of $4.38 per unit on May 15, 1997. As previously indicated,
the General Partner estimates that the final cash distribution will
result in a total Limited Partner return of approximately 92% to 101% of
the Limited Partners' original 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: J. Frank Keohane, President
Principal Executive Officer
Date: Richard P. Timmons
Controller
Principal Accounting and
Finance Officer
<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 June 30, 1997 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 123,124
<SECURITIES> 0
<RECEIVABLES> 71,441
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 3,809,499
<DEPRECIATION> 2,732,955
<TOTAL-ASSETS> 1,271,109
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 699,521
<TOTAL-LIABILITY-AND-EQUITY> 1,271,109
<SALES> 0
<TOTAL-REVENUES> 744,009
<CGS> 572,670
<TOTAL-COSTS> 640,609
<OTHER-EXPENSES> 34,350
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 33,589
<INCOME-PRETAX> 103,400
<INCOME-TAX> 0
<INCOME-CONTINUING> 103,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 103,400
<EPS-PRIMARY> .92
<EPS-DILUTED> .92
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
