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, 2000
/ / 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.)
3 North Columbus Boulevard, Philadelphia, Pennsylvania 19106
____________________________________________________________________________
(Address of principal executive offices) (Zip code)
(215) 574-1636
____________________________________________________________________________
(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 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 1 of 12
<PAGE>
Part I: Financial Information
Item 1: Financial Statements
FIDELITY LEASING INCOME FUND IV, L.P.
BALANCE SHEETS
ASSETS
(Unaudited) (Audited)
March 31, December 31,
2000 1999
___________ ____________
Cash and cash equivalents $1,059,409 $1,070,066
Accounts receivable 55,440 40,594
Due from related parties 2,442 13,683
Equipment under operating leases
(net of accumulated depreciation
of $1,548,606 and $1,490,011,
respectively) 583,564 577,852
Net investment in direct
financing leases 577,887 618,763
Equipment held for sale or lease 31,623 31,624
__________ __________
Total assets $2,310,365 $2,352,582
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Lease rents paid in advance $ 51,502 $ 51,356
Accounts payable and
accrued expenses 15,478 9,464
Due to related parties 10,262 10,163
__________ __________
Total liabilities 77,242 70,983
Partners' capital 2,233,123 2,281,599
__________ __________
Total liabilities and
partners' capital $2,310,365 $2,352,582
========== ==========
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
FIDELITY LEASING INCOME FUND IV, L.P.
STATEMENTS OF OPERATIONS
For the three months ended March 31, 2000 and 1999
(Unaudited)
2000 1999
________ ________
Income:
Rentals $110,611 $204,112
Earned income on direct financing leases 10,166 19,111
Interest 17,069 5,952
Gain on sale of equipment, net - 88,030
Other 1,552 1,542
________ ________
139,398 318,747
________ ________
Expenses:
Depreciation 58,595 105,690
Write-down of equipment to net realizable
value - 10,000
General and administrative 11,923 9,371
General and administrative to related
party 9,188 13,624
Management fee to related party 8,168 15,707
________ ________
87,874 154,392
________ ________
Net income (loss) $ 51,524 $164,355
======== ========
Net income (loss) per equivalent
limited partnership unit $ 4.78 $ 15.74
======== ========
Weighted average number of
equivalent limited partnership
units outstanding during the period 10,041 10,219
======== ========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
FIDELITY LEASING INCOME FUND IV, L.P.
STATEMENT OF PARTNERS' CAPITAL
For the three months ended March 31, 2000
(Unaudited)
General Limited Partners
Partner Units Amount Total
_______ _____ ______ _____
Balance, January 1, 2000 $ 4,499 41,334 $2,277,100 $2,281,599
Cash distributions (3,500) - (96,500) (100,000)
Net income 3,500 - 48,024 51,524
_______ ______ __________ __________
Balance, March 31, 2000 $ 4,499 41,334 $2,228,624 $2,233,123
======= ====== ========== ==========
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
FIDELITY LEASING INCOME FUND IV, L.P.
STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2000 and 1999
(Unaudited)
2000 1999
_________ _________
Cash flows from operating activities:
Net income (loss) $ 51,524 $ 164,355
__________ _________
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation 58,595 105,690
Write-down of equipment to net realizable
value - 10,000
(Gain) loss on sale of equipment, net - (88,030)
(Increase) decrease in accounts receivable (14,846) (28,304)
(Increase) decrease in due from related
parties 11,241 (37,301)
Increase (decrease) in accounts payable
and accrued expenses 6,014 7,037
Increase (decrease) in other, net 245 (3,371)
__________ _________
61,249 (34,279)
__________ _________
Net cash provided by operating activities 112,773 130,076
__________ _________
Cash flows from investing activities:
Acquisition of equipment (64,306) (123,790)
Proceeds from direct financing leases,
net of earned income 40,876 50,192
Proceeds from sale of equipment - 88,030
__________ _________
Net cash provided by (used in)
investing activities (23,430) 14,432
__________ _________
Cash flows from financing activities:
Distributions (100,000) (75,000)
__________ _________
Net cash used in financing activities (100,000) (75,000)
__________ _________
Increase (decrease) cash and
cash equivalents (10,657) 69,508
Cash and cash equivalents, beginning
of period 1,070,066 556,543
__________ _________
Cash and cash equivalents, end of period $1,059,409 $ 626,051
========== =========
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(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 Commission. 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 of equipment under operating leases.
The lessees have agreements with the manufacturer to provide mainte-
nance for the leased equipment. The Fund's operating leases are for
initial lease terms of 29 to 58 months. In accordance with Generally
Accepted Accounting Principles, the Fund writes down its rental equip-
ment to its estimated net realizable value when the amounts are reason-
ably estimated and only recognizes gains upon actual sale of its
rental equipment. As a result, there was no charge to write-down
of equipment to net realizable value during the quarter ended
March 31, 2000 and $10,000 was charged to write-down of equipment to
net realizable value for the quarter ended March 31, 1999. Any future
losses are dependent upon unanticipated technological developments af-
fecting the types of equipment in the portfolio in subsequent years.
The Fund also has equipment leased under the direct financing method
in accordance with Statement of Financial Accounting Standards No. 13.
This method provides for recognition of income (the excess of the ag-
gregate future rentals and estimated unguaranteed residuals upon ex-
piration of the lease over the related equipment cost) over the life
of the lease using the interest method. The Fund's direct financing
leases are for initial lease terms ranging from 58 to 60 months.
Unguaranteed residuals for direct financing leases represent the esti-
mated amounts recoverable at lease termination from lease extensions
or disposition of equipment. The Fund reviews these residual values
quarterly. If the equipment's fair market value is below the estimated
residual value, an adjustment is made.
6
<PAGE>
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
1. EQUIPMENT LEASED (continued)
The net investment in direct financing leases as of March 31, 2000 is
as follows:
Minimum lease payments to be received $643,000
Unearned rental income (65,000)
Expected future residuals -
________
$578,000
========
The future approximate minimum rentals to be received on noncancel-
lable operating and direct financing leases as of March 31, 2000 are
as follows:
Years Ending December 31 Operating Direct Financing
________________________ _________ ________________
2000 $255,000 $153,000
2001 278,000 204,000
2002 179,000 204,000
2003 36,000 82,000
________ ________
$748,000 $643,000
======== ========
2. RELATED PARTY TRANSACTIONS
The General Partner receives 6% or 3% of 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, includ-
ing acquisition fees.
Additionally, the General Partner and its parent company 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.
7
<PAGE>
FIDELITY LEASING INCOME FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. RELATED PARTY TRANSACTIONS (continued)
Following is a summary of fees and costs of services and materials
charged by the General Partner or its parent company during the three
months ended March 31:
2000 1999
________ ________
Management fee $8,168 $15,707
Reimbursable costs 9,188 13,624
Amounts due from related parties at March 31, 2000 and December 31,
1999 represent monies due the Fund from the General Partner and/or
other affiliated funds for rentals and sales proceeds collected and not
yet remitted to the Fund.
Amounts due to related parties at March 31, 2000 and December 31, 1999
represent monies due to the General Partner and/or its parent company
for the fees and costs mentioned above, as well as, rentals and sales
proceeds collected by the Fund on behalf of other affiliated funds.
3. CASH DISTRIBUTION
The General Partner declared and paid a cash distribution of $100,000
in May 2000 for the three months ended March 31, 2000, to all admitted
partners as of March 31, 2000.
8
<PAGE>
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 $139,398 and
$318,747 for the three months ended March 31, 2000 and 1999, respectively.
Rental income from the leasing of equipment accounted for 79% and 64% of
total revenues for the first quarter of 2000 and 1999, respectively. The
decrease in revenues was partially attributable to the decrease in rental
income. Rental income decreased by approximately $94,000 in 2000 because
of equipment under operating leases that came off lease and was sold since
the first quarter of 1999. Additionally, the decrease in net gain on sale
of equipment accounted for a portion of the overall decrease in revenues.
There was no net gain on sale of equipment recognized during the first quarter
of 2000 compared to $88,030 of net gain on sale of equipment recognized during
the first quarter of 1999. The overall decrease in revenues was mitigated
somewhat by the increase in interest income earned by the Fund. The Fund had
larger cash balances available for short-term investment in the first quarter
of 2000 compared to the first quarter of 1999.
Expenses were $87,874 and $154,392 during the three months ended
March 31, 2000 and 1999, respectively. Depreciation expense comprised
67% and 68% of total expenses during the first quarter of 2000 and 1999,
respectively. The decrease in expenses between the first quarter of 2000
and 1999 was primarily attributable to the decrease in depreciation expense.
Depreciation expense decreased in 2000 because of equipment that came off
lease and was sold since the first quarter of 1999. In addition, the de-
crease in write-down of equipment to net realizable value contributed to the
decrease in total expenses in the first quarter of 2000. Based upon the
quarterly review of the recoverability of the undepreciated cost of rental
equipment, there was no charge to operations to write down equipment to its
estimated net realizable value during the three months ended March 31, 2000
compared to $10,000 of write-down of equipment to net realizable value in-
curred for the three months ended March 31, 1999. Any future losses are
dependent upon unanticipated technological developments affecting the types
of equipment in the portfolio in subsequent years.
For the three months ended March 31, 2000 and 1999, the Fund had net
income of $51,524 and $164,355, respectively. The net income per equiva-
lent limited partnership unit, after net income allocated to the General
Partner was $4.78 and $15.74 based on a weighted average number of equiva-
lent limited partnership units outstanding of 10,041 and 10,219 for the
quarter ended March 31, 2000 and 1999, respectively.
The Fund generated cash from operations of $110,119 and $192,015, for
the purpose of determining cash available for distribution for the quarter
ended March 31, 2000 and 1999, respectively. The Fund distributed $100,000
9
<PAGE>
FIDELITY LEASING INCOME FUND IV, L.P.
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
to partners in both May 2000 and 1999 for the first quarter of 2000 and
1999, respectively. A cash distribution of $100,000 and $75,000 was paid
to partners during the first quarter of 2000 and 1999, respectively, for
the three months ended December 31, 1999 and 1998, respectively. For finan-
cial statement purposes, the Fund records cash distributions to partners on
a cash basis in the period in which they are paid.
ANALYSIS OF FINANCIAL CONDITION
The Fund is currently in the process of dissolution. As provided in
the Restated Limited Partnership Agreement, the assets of the Fund shall be
liquidated as promptly as is consistent with obtaining their fair value.
During this time, the Fund will continue to look for opportunities to pur-
chase equipment under operating leases or invest in direct financing leases
with cash available from operations which was not distributed to partners in
previous periods. During the first quarter of 2000 and 1999, the Fund pur-
chased $64,306 and $123,790, respectively of equipment subject to operating
leases. The equipment purchased during the quarter ended March 31, 2000
represents an upgrade to an existing lease schedule.
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.
10
<PAGE>
Part II: Other Information
FIDELITY LEASING INCOME FUND IV, L.P.
March 31, 2000
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
11
<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.
FIDELITY LEASING INCOME FUND IV, L.P.
5-11-00 By: Freddie M. Kotek
_______ ___________________________
Date Freddie M. Kotek
President of
F.L. Partnership Management, Inc.
(Principal Operating Officer)
5-11-00 By: Marianne T. Schuster
_______ ___________________________
Date Marianne T. Schuster
Vice President of
F.L. Partnership Management, Inc.
(Principal Financial Officer)
12
<PAGE>
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 1,059,409
<SECURITIES> 0
<RECEIVABLES> 57,882
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,117,291
<PP&E> 2,163,793
<DEPRECIATION> 1,548,606
<TOTAL-ASSETS> 2,310,365
<CURRENT-LIABILITIES> 77,242
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,233,123
<TOTAL-LIABILITY-AND-EQUITY> 2,310,365
<SALES> 110,611
<TOTAL-REVENUES> 139,398
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 87,874
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 51,524
<INCOME-TAX> 0
<INCOME-CONTINUING> 51,524
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 51,524
<EPS-BASIC> 4.78
<EPS-DILUTED> 4.78
</TABLE>
