SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1995
/ / 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: 0-16845
Fidelity Leasing Income Fund IV, L.P.
_______________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 23-2441780
_______________________________________________________________________________
(State of organization) (I.R.S. Employer Identification No.)
250 King of Prussia Road, Radnor, PA 19087
_______________________________________________________________________________
(Address of principal executive offices) (Zip code)
(610) 964-7102
_______________________________________________________________________________
(Registrant's telephone number, including area code)
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 for such shorter period that the regis-
trant was required to file such reports), and (2) has been subject to such fil-
ing requirements for the past 90 days.
Yes __X__ No _____
Page 1 of 10
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND IV, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
March 31, December 31,
1995 1994
___________ ____________
Cash and cash equivalents $1,169,325 $2,456,685
Accounts receivable 177,419 124,635
Interest receivable 1,145 8,702
Due from related parties 798 12,083
Equipment under operating leases
(net of accumulated depreciation
of $8,265,986 and $8,719,350,
respectively) 2,711,629 1,781,057
Equipment held for sale or lease 25,554 35,383
__________ __________
Total assets $4,085,870 $4,418,545
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 141,541 $ 165,711
Accounts payable and
accrued expenses 26,142 54,043
Due to related parties 39,872 3,553
_________ __________
Total liabilities 207,555 223,307
Partners' capital 3,878,315 4,195,238
__________ __________
Total liabilities and
partners' capital $4,085,870 $4,418,545
========== ==========
The accompanying notes are an integral part of these financial statements.
2
FIDELITY LEASING INCOME FUND IV, L.P.
STATEMENTS OF OPERATIONS
For the three months ended March 31, 1995 and 1994
(Unaudited)
1995 1994
________ ________
Income:
Rentals $585,019 $616,146
Interest 31,617 26,105
Gain on sale of equipment, net 67,864 78,331
Other 11,860 2,052
________ ________
696,360 722,634
________ ________
Expenses:
Depreciation 370,057 371,516
General and administrative 63,766 78,712
________ ________
433,823 450,228
________ ________
Net income $262,537 $272,406
======== ========
Net income per equivalent
limited partnership unit $ 19.06 $ 15.86
======== ========
Weighted average number of
equivalent limited partnership
units outstanding during the period 13,480 16,815
======== ========
The accompanying notes are an integral part of these financial statements.
3
FIDELITY LEASING INCOME FUND IV, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the three months ended March 31, 1995
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1995 $ 6,635 42,565 $4,188,603 $4,195,238
Redemptions - (1,700) (15,882) (15,882)
Cash distributions (5,636) - (557,942) (563,578)
Net income 5,612 - 256,925 262,537
_______ ______ __________ __________
Balance, March 31, 1995 $ 6,611 40,865 $3,871,704 $3,878,315
======= ====== ========== ==========
The accompanying notes are an integral part of these financial statements.
4
FIDELITY LEASING INCOME FUND IV, L.P.
STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1995 and 1994
(Unaudited)
1995 1994
__________ __________
Cash flows from operating activities:
Net income $ 262,537 $ 272,406
__________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 370,057 371,516
Gain on sale of equipment, net (67,864) (78,331)
(Increase) decrease in accounts receivable (52,784) (42,461)
(Increase) decrease in due from related parties 11,285 352,922
Increase (decrease) in lease rents paid
in advance (24,170) (9,767)
Increase (decrease) in accounts payable and
accrued expenses (27,901) (19,958)
Increase (decrease) in due to related parties 36,319 (74,499)
Increase (decrease) in other, net 7,557 2,980
__________ __________
252,499 502,402
__________ __________
Net cash provided by
operating activities 515,036 774,808
__________ __________
Cash flows from investing activities:
Acquisition of equipment (1,301,621) (5,742)
Maturity of investment securities held
to maturity - 5,277
Proceeds from sale of equipment 78,685 128,004
__________ __________
Net cash provided by
(used in) investing activities (1,222,936) 127,539
__________ __________
Cash flows from financing activities:
Distributions (563,578) (861,371)
Redemptions of capital (15,882) (75,532)
__________ __________
Net cash used in financing activities (579,460) (936,903)
__________ __________
Decrease in cash and cash equivalents (1,287,360) (34,556)
Cash and cash equivalents, beginning
of period 2,456,685 3,031,659
__________ __________
Cash and cash equivalents, end of period $1,169,325 $2,997,103
========== ==========
The accompanying notes are an integral part of these financial statements.
5
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
(Unaudited)
The accompanying unaudited condensed financial statements have been prepared
by the Fund in accordance with generally accepted accounting principles,
pursuant to the rules and regulations of the Securities and Exchange Commis-
sion. In the opinion of Management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included.
1. EQUIPMENT LEASED
Equipment on lease consists primarily of computer peripheral equipment
under operating leases. A majority of the equipment was manufactured by
IBM. The lessees have agreements with the manufacturer to provide main-
tenance for the leased equipment. The Fund's operating leases are for
initial lease terms of 7 to 60 months. Generally, operating leases will
not recover all of the undepreciated cost and related expenses of its
rental equipment during the initial lease terms and the Fund is prepared to
remarket the equipment in future years. Fund policy is to review periodi-
cally the expected economic life of its rental equipment in order to deter-
mine the recoverability of its undepreciated cost. Recent and anticipated
technological developments affecting computer equipment and competitive
factors in the marketplace are considered among other things, as part of
this review.
The future approximate minimum rentals to be received on noncancellable
operating leases as of March 31, 1995 are as follows:
Years Ending December 31 Minimum Rentals
________________________ _______________
1995 $1,163,000
1996 1,067,000
1997 648,000
1998 89,000
__________
$2,967,000
__________
2. RELATED PARTY TRANSACTIONS
The General Partner receives 6% or 3% of gross rental payments from equip-
ment under operating leases and full pay-out leases, respectively, for
administrative and management services performed on behalf of the Fund.
Full pay-out leases are noncancellable leases with terms in excess of 42
months and for which rental payments during the initial term are at least
sufficient to recover the purchase price of the equipment, including acqui-
sition fees.
6
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (Continued)
Additionally, the General Partner and its affiliates are reimbursed by the
Fund for certain costs of services and materials used by or for the Fund
except those items covered by the above-mentioned fees. Following is a
summary of fees and costs of services and materials charged by the General
Partner or its affiliates during the three months ended March 31:
1995 1994
________ ________
Management fee $34,597 $36,120
Reimbursable costs 13,536 17,564
Amounts due from related parties at March 31, 1995 and December 31, 1994
represent monies due the Fund from the General Partner and/or other
affiliated funds for rentals and sales proceeds collected and not yet re-
mitted the Fund.
Amounts due to related parties at March 31, 1995 and December 31, 1994
represent monies due to the General Partner for the fees and costs men-
tioned above, as well as, rentals and sales proceeds collected by the Fund
on behalf of other affiliated funds.
3. SUBSEQUENT EVENT
Cash Distribution:
The General Partner declared a cash distribution of $561,230 in May 1995
for the three months ended March 31, 1995, to all admitted partners as of
March 31, 1995.
7
FIDELITY LEASING INCOME FUND IV, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Fidelity Leasing Income Fund IV, L.P. had revenues of $696,360 and
$722,634 for the three months ended March 31, 1995 and 1994, respectively.
Rental income from the leasing of computer peripheral equipment accounted for
84% and 85% of total revenues for the first quarter of 1995 and 1994, respec-
tively. The decrease in revenues is primarily attributable to a decrease in
rental income. In 1995, rental income decreased by approximately $192,000
because of equipment which came off lease and was re-leased at lower rental
rates or sold. This decrease, however, was offset by approximately $161,000
of rents generated from equipment purchases made since the first quarter of
1994. Additionally, the Fund recognized a net gain on sale of equipment of
$67,864 and $78,331 for the quarter ended March 31, 1995 and 1994, respectively
which also accounted for the decrease in revenues in 1995.
Expenses were $433,823 and $450,228 during the three months ended March 31,
1995 and 1994, respectively. Depreciation expense comprised 85% and 83% of
total expenses during the first quarter of 1995 and 1994, respectively. The
decrease in expenses between the first quarter of 1995 and 1994 is primarily
attributable to a decrease in general and administrative expenses because of
the decrease in equipment remarketing expenses incurred by the Fund during
these periods.
For the three months ended March 31, 1995 and 1994, the Fund's net income
was $262,537 and $272,406, respectively. The earnings per equivalent limited
partnership unit, after earnings allocated to the General Partner were $19.06
and $15.86 based on a weighted average number of equivalent limited partnership
units outstanding of 13,480 and 16,815 for the quarter ended March 31, 1995 and
1994, respectively.
The Fund generated funds from operations of $564,730 and $565,591, for the
purpose of determining cash available for distribution and distributed $561,230
and $565,804 to partners for the first quarter of 1995 and 1994, respectively.
ANALYSIS OF FINANCIAL CONDITION
The Fund continues to purchase computer peripheral equipment, with cash
available from operations which was not distributed to partners in previous
periods. The Fund purchased $1,301,621 and $5,742 of equipment during the
three months ended March 31, 1995 and 1994, respectively.
The cash position of the Fund is reviewed daily and cash is invested on a
short-term basis.
The Fund's cash from operations is expected to continue to be adequate to
cover all operating expenses and contingencies during the next twelve month
period.
8
Part II: Other Information
FIDELITY LEASING INCOME FUND IV, L.P.
March 31, 1995
Item 1. Legal Proceedings: Inapplicable.
Item 2. Changes in Securities: Inapplicable.
Item 3. Defaults Upon Senior Securities: Inapplicable.
Item 4. Submission of Matters to a Vote of Securities Holders: Inapplicable.
Item 5. Other Information: Inapplicable.
Item 6. Exhibits and Reports on Form 8-K:
a) Exhibits: None
b) Reports on Form 8-K: None
9
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the regis-
trant has duly caused this report to be signed on its behalf by the under-
signed, thereunto duly authorized.
FIDELITY LEASING INCOME FUND IV, L.P.
5-11-95 By: P. Donald Mooney
_______ ___________________________
Date P. Donald Mooney
President of
Fidelity Leasing Corporation
(Principal Operating Officer)
5-11-95 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
Fidelity Leasing Corporation
(Principal Financial Officer)
10
