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 September 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 33-21267
CSA Income Fund Limited Partnership III
(Exact name of registrant as specified in its charter)
Massachusetts 04-3002909
(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 III
<TABLE>
STATEMENTS OF FINANCIAL POSITION AS OF
<CAPTION>
(Unaudited)
September 30, December 31,
1997 1996
<S> <C> <C>
Assets
Cash and cash equivalents $ 221,650 $ 450,785
Rentals receivable 67,581 128,676
Accounts receivable-affiliates 38,736 1,140,003
Notes receivable-lessee 18,226 39,118
Remarketing receivables 2,121 42,808
Rental equipment, at cost 35,669,488 35,231,829
Less accumulated depreciation(12,915,033) (11,121,318)
Net rental equipment 22,754,455 24,110,511
Total assets $ 23,102,769 $ 25,911,901
Liabilities and partners' capital
Liabilities:
Accounts payable - other $ 51,122 $ 25,064
Accrued management fees 33,147 29,853
Deferred income 93,053 206,291
Notes payable 15,440,589 16,116,034
Total liabilities 15,617,911 16,377,242
Partners' capital (deficit):
General Partner:
Capital contribution 1,000 1,000
Cumulative net gain 267,960 12,047
Cumulative cash
distributions (384,390) (361,663)
(115,430) (348,616)
Limited Partners (500,000 units):
Capital contributions net of
offering costs 44,539,778 44,539,778
Cumulative net gain 1,159,725 1,192,712
Cumulative cash
distributions (38,099,215) (35,849,215)
7,600,288 9,883,275
Partners' capital 7,484,858 9,534,659
Total liabilities and
partners' capital $ 23,102,769 $ 25,911,901
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarters Ended Nine Months Ended
September September September September
30, 1997 30, 1996 30, 1997 30,1996
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 2,565,381 $1,988,222 $7,865,919 $5,332,640
Interest income 1,947 25,276 21,724 105,921
Gain on sale
of equipment 44,584 838 255,913 259,927
Gain (loss) on
foreign currency 2,437 (3,706) 6,874 (5,442)
Total revenues 2,614,349 2,010,630 8,150,430 5,693,046
Costs and expenses:
Depreciation 2,243,729 1,441,138 6,489,409 3,994,236
Interest 323,377 179,620 904,267 413,351
Management fees 128,269 99,411 393,296 266,632
Storage and
Refurbishment - 7,000 3,253 19,000
General and
administrative 43,670 38,235 137,279 117,944
Total expenses 2,739,045 1,765,404 7,927,504 4,811,163
Net income (loss) $ (124,696)$ 245,226 $ 222,926 $ 881,883
Net income (loss)
allocation:
General Partner $ 44,584 $ 2,452 $ 255,913 $ 8,819
Limited Partners (169,280) 242,774 (32,987) 873,064
$ (124,696)$ 245,226 $ 222,926 $ 881,883
Net income (loss) per
Limited Partnership
Unit $ (.34)$ .49 $ (.07)$ 1.75
Number of Limited
Partnership Units 500,000 500,000 500,000 500,000
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Quarters Ended Nine Months Ended
September September September September
30, 1997 30, 1996 30, 1997 30, 1996
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 2,531,115 $ 1,997,001 $ 7,768,563 $ 4,877,596
Cash paid for
operating and
management
expenses (146,939) (137,748) (504,476) (423,103)
Interest paid (323,377) (179,620) (904,267) (413,351)
Interest received 1,947 21,103 21,724 111,707
Net cash from
operations 2,062,746 1,700,736 6,381,544 4,152,849
Cash flows from
investments:
Purchase of
equipment (33,522) (856,865) (5,661,691) (10,175,250)
Sale of equipment 229,938 30,046 877,025 1,490,889
Net cash from
(used by)
investments 196,416 (826,819) (4,784,666) (8,684,361)
Cash flows from
financing:
Proceeds from
notes receivable 3,555 - 20,892 -
Advances from (to)
affiliates 63,613 1,282,788 1,101,266 (470,680)
Proceeds from
notes payable 388,795 1,666,225 5,648,889 6,416,017
Repayment of
notes payable (2,164,469) (1,104,590) (6,324,333) (2,535,711)
Payment of cash
distributions (757,575) (757,575) (2,272,727) (2,272,727)
Net cash from
(used by)
financing (2,466,081) 1,086,848 (1,826,013) 1,136,899
Net change in cash
and cash
equivalents (206,919) 1,960,765 (229,135) (3,394,613)
Cash and cash
equivalents at
beginning of
period 428,569 855,607 450,785 6,210,985
Cash and cash
equivalents
at end of period $ 221,650 $ 2,816,372 $ 221,650 $ 2,816,372
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP III
NOTE TO FINANCIAL STATEMENTS
The quarterly financial statements of the Partnership presented
herein are without audit except for the December 31, 1996 Balance
Sheet. 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 III as of September
30,1997 and September 30, 1996 and the results of operations and cash
flows for the periods presented therein.
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP III
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $2,565,381 and $1,988,222 and net income (loss) was
($124,696) and $245,226 for the quarters ended September 30, 1997 and
1996, respectively. For the nine months ended September 30, 1997 and
September 30, 1996, rental income was $7,865,919 and $5,332,640 and
net income was $222,926 and $881,883, respectively. The increase in
rental income in 1997 is attributable to the $25,321,247 of new
equipment leased during 1996 and 1997. The decrease in net income is
primarily attributable to the increase in depreciation and interest
expense associated with the new equipment leases.
The Partnership generated $7,258,569 from operations and the sale of
equipment during the nine months ended September 30, 1997. The
Partnership used these funds and proceeds from equipment financings
to acquire additional equipment of $5,661,691, make scheduled debt
payments of $6,324,333 and pay cash distributions to the partners of
$2,272,727.
As previously reported, the General Partner has started the process of
Winding-Up the Partnership and expects to complete such by late 1998.
The Partnership has over ninety active leases of which the General
Partner intends to negotiate ultimate lease and equipment disposition.
Distributions may fluctuate from the Wind-Up stage proceeds, however
the current intent of the General Partner is to maintain a 6%
distribution level for the near future.
The Partnership distributed $.50 per Limited Partnership Unit on the
15th of July, August and September. To date, the Partnership has made
cash distributions to the Limited Partners ranging from 68% to 84% of
their initial investment, depending on when the Limited Partner
entered the Partnership. As previously reported, certain revenues
generated by the Partnership from lease renewals and remarketings
after the initial lease terms were lower than anticipated as a result
of more rapid technological obsolescence in high technology equipment.
Also as previously reported, the General Partner still estimates that
the continued cash distributions may not fully return the entire initial
investment of the Limited Partners and/or a return thereon. The
General Partner will continue to report on the Limited Partners'
return of investment with each cash distribution.
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP III
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 III (Registrant)
By its General Partner,
CSA Equity Funds, Inc.
Date: 11/14/97 /s/ J. Frank Keohane
J. Frank Keohane, President
Principal Executive Officer
Date: 11/14/97 /s/ Richard P. Timmons
Richard P. Timmons,
Corporate Controller
Principal Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from CSA Income
Fund Limited Partnership III's Statement of Financial Position as of September
30, 1997 and Statement of Operations for the nine months then ended and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 221,650
<SECURITIES> 0
<RECEIVABLES> 126,664
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 35,669,488
<DEPRECIATION> 12,915,033
<TOTAL-ASSETS> 23,102,769
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,484,858
<TOTAL-LIABILITY-AND-EQUITY> 23,102,769
<SALES> 0
<TOTAL-REVENUES> 8,150,430
<CGS> 0
<TOTAL-COSTS> 6,885,958
<OTHER-EXPENSES> 137,279
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 904,267
<INCOME-PRETAX> 222,926
<INCOME-TAX> 0
<INCOME-CONTINUING> 222,926
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 222,926
<EPS-PRIMARY> (.07)
<EPS-DILUTED> (.07)
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Position
</FN>
</TABLE>
