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, 1999
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
STATEMENTS OF FINANCIAL POSITION AS OF
<TABLE>
<CAPTION>
(Unaudited)
September 30, December 31,
1999 1998
<S> <C> <C>
Assets
Cash and cash
equivalents $ 0 $ 428,948
Rentals receivable 0 786
Accounts receivable-
affiliates 0 11,376
Remarketing receivables 0 699
Rental equipment,
at cost 0 16,996,622
Less accumulated
depreciation 0 (12,429,074)
Net rental equipment 0 4,567,548
Total assets $ 0 $ 5,009,357
Liabilities and
partners' capital
Accounts payable $ 0 $ 46,669
Accrued management fees 0 18,145
Deferred income 0 31,905
Notes payable 0 1,715,804
Total liabilities 0 1,812,523
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 443,996 421,268
Cumulative cash
distributions (444,996) (422,268)
0 0
Limited Partners
(500,000 units):
Capital contributions
net of offering costs 44,539,778 44,539,778
Cumulative net income 9,437 506,271
Cumulative cash
distributions (44,549,215) (41,849,215)
0 3,196,834
Total Partners'
capital 0 3,196,834
Total liabilities and
partners' capital $ 0 $ 5,009,357
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
Three Months Nine Months Ended
September, September, September, September,
30, 1999 30, 1998 30, 1999 30, 1998
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 381,806 $1,434,086 $ 2,411,906 $5,807,860
Interest income 288 1,013 1,644 2,543
Gain on sale
of equipment (291,636) 233,459 (242,117) 378,106
Gain (loss) on
foreign currency (102) 168 (247) 367
Total revenues 90,356 1,668,726 2,171,186 6,188,876
Costs and expenses:
Depreciation 365,903 1,419,000 2,361,320 5,351,574
Interest expense 1,099 83,213 44,065 484,995
Management fees 19,090 71,704 120,595 290,393
Storage and
Refurbishment - 1,000 12,500 1,000
General and
administrative 51,587 28,376 106,812 110,160
Total expenses 437,679 1,603,293 2,645,292 6,238,122
Net income (loss) $ (347,323) $ 65,433 $ (474,106) $ (49,246)
Net income (loss)
allocation:
General Partner $ 7,576 $ 7,574 $ 22,728 $ 146,672
Limited Partners (354,899) 57,859 (496,834) (196,018)
$ (347,323) $ 65,433 $ (474,106) $ (49,246)
Net income (loss) per
Limited Partnership
Unit $ (.71) $ .12 $ (.99) $ (.39)
Number of Limited
Partnership Units 500,000 500,000 500,000 500,000
</TABLE>
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP III
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September, September, September, September,
30, 1999 30, 1998 30, 1999 30, 1998
<S> <C> <C> <C> <C>
Cash flows from operations:
Cash received from
rental of
equipment $ 380,083 $ 1,368,677 $2,380,534 $ 5,790,688
Cash paid for
operating and
management
expenses (105,112) (68,747) (304,716) (414,667)
Interest paid (1,099) (83,213) (44,065) (484,996)
Interest received 288 1,012 1,644 2,543
Net cash provided by
operations 274,160 1,217,729 2,033,397 4,893,568
Cash flow from
investments:
Sale of equipment 1,102,671 2,575,491 1,964,810 6,965,873
Net cash provided by
investments 1,102,671 2,575,491 1,964,810 6,965,873
Cash flows from financing:
Proceeds from notes
receivable - - - 10,933
Advances to/from
affiliates - 46,165 11,376 37,070
Proceeds from notes
payable - 14,641 - 14,641
Repayment of notes
payable (178,917) (2,946,990) (1,715,803) (9,557,636)
Payment of cash
distributions (1,207,576) (757,574) (2,722,728) (2,272,726)
Net cash used by
financing (1,386,493) (3,643,758) (4,427,155) (11,767,718)
Net change in cash
And cash equivalents (9,662) 149,462 (428,948) 91,723
Cash and cash equivalents
at beginning
of period 9,662 142,589 428,948 200,328
Cash and cash equivalents
at end of period $ - $ 292,051 $ - $ 292,051
</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 balance sheet information as of December 31,
1998. Certain information and footnote disclosure 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,
1998.
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,
1999 and September 30, 1998 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
As discussed since the 1996 Annual Report, the General Partner of CSA Income
Fund Limited Partnership III has now completed the wind-up of the Partnership
as of September 30, 1999. The Partnership distributed $0.50 per Limited
Partnership Unit on the 15th of July, August, and September. The Partnership
also distributed a final distribution of $0.90 per Limited Partners unit on
September 30, 1999. This will be the final Partnership quarterly report. The
Partnership will mail all Limited Partners their final K-1 for tax reporting
purposes during February 2000.
For accounting purposes, total revenue was $90,356 and $1,668,726 for the
quarters ended September 30, 1999 and 1998, respectively. Net loss for the
quarter ended September 30, 1999 was $347,320 as compared to net income of
$65,433 in the quarter ended September 30, 1998. For the nine months ended
September 30, 1999 and September 30, 1998, total revenue was $2,171,186 and
$6,188,876, respectively. A net loss of $474,106 was recorded for the first
nine months ended September 30, 1999, as compared to a net loss of $49,246
in the nine months ended September 30, 1998. The third quarter net loss was
primarily due to losses recorded on the sale of equipment. As part of the
wind-up the sale of three large Owens Corning leases consisting primarily of
desktop personal computers (PC's) accounted for a significant portion of the
loss recorded in the third quarter. The fair market value of used PC's has
experienced substantial erosion during 1999.
The Partnership generated cash flow of $3,998,207 from operations and sale
of equipment during the nine months ended September 30, 1999. The
Partnership used these funds and cash on hand to reduce notes payable by
$1,715,803 and make distributions to partners of $2,722,728. In accordance
with the Partnership Agreement, pursuant to section 8.3 (c), accounting profits
from the sale of equipment that result in the dissolution of the Partnership,
shall be allocated to each partner first in the amount equal to the negative
balance in the Capital Account of such partner. As provided in the Partnership
Agreement and as previously discussed, in connection with the wind up of the
Partnership, certain accounting gains on the disposition of partnership
assets were allocated during the third quarter of 1999 to the General Partner
to reduce its Capital Account negative balance.
<PAGE>
CSA INCOME FUND LIMITED PARTNERSHIP III
PART II
<TABLE>
<CAPTION>
<S> <C>
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 the third quarter of 1999.
</TABLE>
<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:
/s/ J. Frank Keohane
President
Principal Executive Officer
Date:
/s/ Richard P.Timmons
Corporate 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 III's Statement of Financial Position as of
September 30, 1999 and Statement of Operations for the nine months then
ended and is qualified in its entirely by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 2,171,186
<CGS> 0
<TOTAL-COSTS> 2,494,415
<OTHER-EXPENSES> 106,812
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 44,065
<INCOME-PRETAX> (474,106)
<INCOME-TAX> 0
<INCOME-CONTINUING> (474,106)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (474,106)
<EPS-BASIC> (.99)
<EPS-DILUTED> (.99)
<FN>
<F1>The registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
