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 June 30, 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 11
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND IV, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
June 30, December 31,
1995 1994
___________ ____________
Cash and cash equivalents $ 933,772 $2,456,685
Accounts receivable 64,841 124,635
Interest receivable 187 8,702
Due from related parties 27,500 12,083
Equipment under operating leases
(net of accumulated depreciation
of $7,228,598 and $8,719,350,
respectively) 2,494,740 1,781,057
Equipment held for sale or lease 28,301 35,383
__________ __________
Total assets $3,549,341 $4,418,545
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 144,234 $ 165,711
Accounts payable and
accrued expenses 6,928 54,043
Due to related parties 6,514 3,553
__________ __________
Total liabilities 157,676 223,307
Partners' capital 3,391,665 4,195,238
__________ __________
Total liabilities and
partners' capital $3,549,341 $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
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
____ ____ ____ ____
Income:
Rentals $546,754 $574,372 $1,131,773 $1,190,518
Interest 15,662 35,007 47,279 61,112
Gain on sale of equipment,
net 32,679 - 100,543 66,200
Other 813 5,382 12,673 7,435
________ ________ __________ __________
595,908 614,761 1,292,268 1,325,265
________ ________ __________ __________
Expenses:
Depreciation 320,825 350,097 690,882 721,613
Write-down of equipment
to net realizable value 87,796 - 87,796 -
General and administrative 48,865 32,137 64,498 59,293
General and administrative
to related party 29,969 24,290 43,505 41,854
Management fee to related
party 32,302 35,742 66,899 69,734
Loss on sale of equipment,
net - 12,131 - -
________ ________ __________ __________
519,757 454,397 953,580 892,494
________ ________ __________ __________
Net income $ 76,151 $160,364 $ 338,688 $ 432,771
======== ======== ========== ==========
Net income per equivalent
limited partnership unit $ 5.54 $ 9.77 $ 24.99 $ 25.82
======== ======== ========== ==========
Weighted average number of
equivalent limited partner-
ship units outstanding
during the period 12,732 15,833 13,106 16,324
======== ======== ========== ==========
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 six months ended June 30, 1995
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 1995 $ 6,635 42,565 $4,188,603 $4,195,238
Redemptions - (1,730) (17,453) (17,453)
Cash distributions (11,248) - (1,113,560) (1,124,808)
Net income 11,221 - 327,467 338,688
_______ ______ __________ __________
Balance, June 30, 1995 $ 6,608 40,835 $3,385,057 $3,391,665
======= ====== ========== ==========
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 six months ended June 30, 1995 and 1994
(Unaudited)
1995 1994
____ ____
Cash flows from operating activities:
Net income $ 338,688 $ 432,771
__________ __________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 690,882 721,613
Write-down of equipment to net
realizable value 87,796 -
Gain on sale of equipment, net (100,543) (66,200)
(Increase) decrease in accounts receivable 59,794 (65,887)
(Increase) decrease in due from related
parties (15,417) 374,860
Increase (decrease) in lease rents paid
in advance (21,477) 850
Increase (decrease) in accounts payable and
accrued expenses (47,115) 361,535
Increase (decrease) in due to related parties 2,961 (84,965)
Increase (decrease) in other, net 8,515 6,309
__________ __________
665,396 1,248,115
__________ __________
Net cash provided by operating activities 1,004,084 1,680,886
__________ __________
Cash flows from investing activities:
Acquisition of equipment (1,533,346) (436,760)
Maturity of investment securities held
to maturity - 495,886
Proceeds from sale of equipment 148,610 211,195
__________ __________
Net cash provided by
(used in) investing activities (1,384,736) 270,321
__________ __________
Cash flows from financing activities:
Distributions (1,124,808) (1,427,175)
Redemptions of capital (17,453) (80,363)
__________ __________
Net cash used in financing activities (1,142,261) (1,507,538)
__________ __________
Increase (decrease) in cash and
cash equivalents (1,522,913) 443,669
Cash and cash equivalents, beginning
of period 2,456,685 3,031,659
__________ __________
Cash and cash equivalents, end of period $ 933,772 $3,475,328
========== ==========
The accompanying notes are an integral part of these financial statements.
5
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 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. Certain amounts on the 1994 financial statements have been
reclassified to conform to the presentation adopted in 1995.
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 15 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 quarterly
the expected economic life of its rental equipment in order to determine
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. In accordance with Generally Accepted Accounting Principles,
the Fund writes down its rental equipment to its estimated net realizable
value when the amounts are reasonably estimated and only recognizes gains
upon actual sale of its rental equipment. As a result, $87,796 and $-0-
was charged to write-down of equipment to net realizable value for the
six months ended June 30, 1995 and 1994, respectively. The General
Partner believes, after analyzing the current equipment portfolio, that
there are impending gains to be recognized upon the sale of certain of its
equipment in future years. Any future losses are dependent upon unantici-
pated technological developments affecting the computer equipment industry
in subsequent years.
The future approximate minimum rentals to be received on noncancellable
operating leases as of June 30, 1995 are as follows:
Years Ending December 31 Minimum Rentals
________________________ _______________
1995 $ 831,000
1996 1,124,000
1997 660,000
1998 534,000
__________
$3,149,000
==========
6
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
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.
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 and six months ended June 30,
1995 and 1994:
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
____ ____ ____ ____
Management fee $32,302 $35,742 $66,899 $69,734
Reimbursable costs 29,969 24,290 43,505 41,854
Amounts due from related parties at June 30, 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 June 30, 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 and paid a cash distribution of $560,918 in
August 1995 for the three months ended June 30, 1995, to all admitted
partners as of June 30, 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 $595,908 and
$614,761 for the three months ended June 30, 1995 and 1994, respectively,
and $1,292,268 and $1,325,265 for the six months ended June 30, 1995 and 1994,
respectively. Rental income from the leasing of computer peripheral equipment
accounted for 92% and 93% of total revenues for the second quarter of 1995 and
1994, respectively, and 88% and 90% of total revenues for the first six months
of 1995 and 1994, respectively. The decrease in revenues is primarily
attributable to a decrease in rental income. In 1995, rental income decreased
by approximately $390,000 because of equipment which came off lease and was re-
leased at lower rental rates or sold. This decrease, however, was offset by
approximately $331,000 of rents generated from equipment purchases made since
the second quarter of 1994. Additionally, the Fund recognized a net gain on
sale of equipment of $100,543 and $66,200 for the six months ended June 30,
1995 and 1994, respectively, which partially offset the decrease in revenues in
1995.
Expenses were $519,757 and $454,397 during the three months ended June 30,
1995 and 1994, respectively and $953,580 and $892,494 for the six months ended
June 30, 1995 and 1994, respectively. Depreciation expense comprised 62% and
77% of total expenses during the second quarter of 1995 and 1994, respectively
and 72% and 81% for the first six months of 1995 and 1994, respectively. The
increase in expenses is predominantly caused by the increase in the write-down
of equipment to net realizable value in 1995. Based upon the quarterly review
of the recoverability of the undepreciated cost of rental equipment, $87,796
was charged to operations to write down equipment to its estimated net
realizable value during the six months ended June 30, 1995 as compared to $-0-
for the six months ended June 30, 1994. The General Partner believes, after
analyzing the current equipment portfolio, that there are impending gains to
be recognized upon the sale of certain of its equipment in future years. Any
future losses are dependent upon unanticipated technological developments
affecting the computer equipment industry in subsequent years. The overall
increase in expenses, however, was offset by the decrease in depreciation
expense resulting from equipment which came off lease or was sold since the
second quarter of 1994.
For the three months ended June 30, 1995 and 1994, the Fund had net income
of $76,151 and $160,364, respectively. For the six months ended June 30, 1995
and 1994, the Fund had net income of $338,688 and $432,771, respectively. The
earnings per equivalent limited partnership unit, after earnings allocated to
the General Partner were $5.54 and $9.77 based on a weighted average number of
equivalent limited partnership units outstanding of 12,732 and 15,833 for the
quarter ended June 30, 1995 and 1994, respectively. The earnings per
equivalent limited partnership unit, after earnings allocated to the General
Partner were $24.99 and $25.82 based on a weighted average number of equivalent
limited partnership units outstanding of 13,106 and 16,324 for the six months
ended June 30, 1995 and 1994, respectively.
The Fund generated funds from operations of $452,093 and $522,592, for the
purpose of determining cash available for distribution, during the second
quarter of 1995 and 1994, respectively and distributed $560,918 and $565,202 to
partners in August 1995 and 1994, respectively. For the six months ended June
8
FIDELITY LEASING INCOME FUND IV, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
RESULTS OF OPERATIONS (Continued)
30, 1995 and 1994, the Fund generated funds from operations of $1,016,823 and
$1,088,184 and distributed $561,230 and $565,804 to partners during the six
months ended June 30, 1995 and 1994, respectively and $560,918 and $565,202 to
partners in August 1995 and 1994, respectively. The distributions for the
three and six months ended June 30, 1995, include $108,825 and $105,325,
respectively, of sales proceeds and cash available from previous quarters which
was not distributed.
ANALYSIS OF FINANCIAL CONDITION
The Fund continues to purchase computer peripheral equipment, with sales
proceeds and cash available from operations which was not distributed to
partners in previous periods. The Fund purchased $1,533,346 and $436,760 of
equipment during the six months ended June 30, 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.
9
Part II: Other Information
FIDELITY LEASING INCOME FUND IV, L.P.
June 30, 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: EX-27
b) Reports on Form 8-K: None
10
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.
8-11-95 By: P. Donald Mooney
_______ ___________________________
Date P. Donald Mooney
President of
Fidelity Leasing Corporation
(Principal Operating Officer)
8-11-95 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
Fidelity Leasing Corporation
(Principal Financial Officer)
11
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.
_______ ___________________________
Date P. Donald Mooney
President of
Fidelity Leasing Corporation
(Principal Operating Officer)
_______ ___________________________
Date Marianne T. Schuster
Vice President of
Fidelity Leasing Corporation
(Principal Financial Officer)
11
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 933,772
<SECURITIES> 0
<RECEIVABLES> 92,528
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,026,300
<PP&E> 9,751,639
<DEPRECIATION> 7,228,598
<TOTAL-ASSETS> 3,549,341
<CURRENT-LIABILITIES> 157,676
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 3,391,665
<TOTAL-LIABILITY-AND-EQUITY> 3,549,341
<SALES> 1,131,773
<TOTAL-REVENUES> 1,292,268
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 953,580
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 338,688
<INCOME-TAX> 0
<INCOME-CONTINUING> 338,688
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 338,688
<EPS-PRIMARY> 24.99
<EPS-DILUTED> 24.99
</TABLE>
