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, 1996
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 33-32744
CSA Income Fund IV Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts 04-3072449
(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 IV LIMITED PARTNERSHIP
<TABLE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF SEPTEMBER 30, 1996 (UNAUDITED)
AND DECEMBER 31, 1995
______________________________________________________________________
<CAPTION>
(Unaudited)
SEPTEMBER 30, December 31,
1996 1995
<S> <C> <C>
Assets
Cash and cash equivalents $ 1,699,242 $ 6,795,047
Rentals receivable 809,367 369,887
Value added tax deposits 149,397 89,913
Accounts receivable-affiliates 152,651 611,953
Remarketing receivable 102,647 31,160
Rental equipment, at cost 74,191,126 77,469,983
Less accumulated depreciation (50,017,084) (51,633,820)
Net rental equipment 24,174,042 25,836,163
Total assets $ 27,087,346 $ 33,734,123
Liabilities and partners' capital
Liabilities:
Accrued management fee $ 54,277 $ 40,781
Accrued interest expense 81,568 113,562
Accounts payable 44,343 37,968
Accounts payable - equipment - 84,691
Accounts payable - affiliates 527,985 85,240
Deferred income 20,603 226,089
Notes payable 8,856,448 13,804,399
Limited recourse notes payable 570,471 580,901
Total liabilities 10,155,695 14,973,631
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net loss (20,505) (32,930)
Cumulative cash distributions (277,348) (246,635)
(296,853) (278,565)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net loss (2,030,062) (3,260,165)
Cumulative cash distributions (26,942,473) (23,901,817)
17,228,504 19,039,057
Total partners' capital 16,931,651 18,760,492
Total liabilities and
partners' capital $ 27,087,346 $ 33,734,123
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTH
PERIODS ENDED SEPTEMBER 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS NINE MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 4,273,790 $ 4,895,085 $14,334,291 $15,535,759
Interest income 19,803 157,472 76,761 331,057
Gain (loss) on sale
of equipment (395,052) 139,834 (53,150) 280,786
Net gain (loss) on
foreign currency (14,594) 28,356 (20,233) 123,368
Total revenues 3,883,946 5,220,747 14,337,669 16,270,970
Costs and expenses:
Depreciation and
amortization 3,061,845 4,095,392 10,966,644 13,248,566
Interest 239,327 303,709 811,325 1,333,668
Management fees 358,528 330,790 1,094,454 1,017,075
General and
administrative 81,931 90,609 222,718 311,268
Total expenses 3,741,631 4,820,500 13,095,141 15,910,577
Net income $ 142,315 $ 400,247 $ 1,242,528 $ 360,393
Net income allocation:
General Partner $ 1,423 $ 4,002 $ 12,425 $ 3,604
Limited Partners 140,892 396,245 1,230,103 356,789
$ 142,315 $ 400,247 $ 1,242,528 $ 360,393
Net income per
Limited Partnership
Unit $ .28 $ 0.78 $ 2.43 $ 0.70
Number of Limited
Partnership Units 506,776 506,776 506,776 506,776
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE AND NINE MONTH
PERIODS ENDED SEPTEMBER 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS NINE MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 4,864,625 $ 4,968,651 $13,667,471 $16,159,315
Cash paid for
operating and
management
expenses (509,962) (427,194) (1,297,300) (1,419,408)
Interest paid (239,327) (467,722) (843,319) (1,438,454)
Interest received 19,803 157,472 76,761 331,057
Net cash from
operations 4,135,139 4,231,207 11,603,613 13,632,510
Cash flow from
investments:
Value added tax (68,502) 142,649 (59,483) 12,069
Purchase of equipment (708,686) (995,198) (11,391,650) (2,438,705)
Sale of equipment 1,122,812 1,655,081 1,964,110 4,540,762
Net cash used from
investments 345,624 802,532 (9,487,023) 2,114,126
Cash flows from
financing:
Change in amounts due
to/from affiliates (668,977) 773,037 902,046 1,350,306
Accounts payable
equipment purchase (426,483) (614,513) (84,691) (1,052,322)
Proceeds from notes
payable 587,234 449,382 3,861,710 4,246,154
Repayment of notes
payable (3,030,153) (4,438,998) (8,820,091)(12,023,447)
Payment of cash
distributions (1,023,789) (1,023,791) (3,071,369) (3,071,370)
Net cash
used for
financing (4,562,168) (4,850,883) (7,212,395)(10,550,679)
Net change in cash and
cash equivalents (81,405) 182,856 (5,095,805) 5,195,957
Cash and cash equivalents
at beginning
of period 1,780,647 6,980,371 6,795,047 1,967,270
Cash and cash equivalents
at end of period $1,699,242 $ 7,163,227 $1,699,242 $ 7,163,227
</TABLE>
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS
______________________________________________________________________
The quarterly financial statements have been prepared by the
Partnership without audit. 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, 1995.
In the General Partner's opinion, the unaudited financial statements
reflect all adjustments necessary to present fairly the financial
position of CSA Income Fund IV Limited Partnership as of September 30,
1996 and December 31, 1995 and the results of operations and cash
flows for the periods presented therein.
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
______________________________________________________________________
Gross rental income was $4,273,790 and $4,895,085 and net income was
$142,315 and $400,247 for the quarters ended September 30, 1996 and
1995, respectively. For the nine months ended September 30, 1996 and
1995, gross rental income was $14,334,291 and $15,535,759 and net
income was $1,242,528 and $360,393, respectively. The decrease in
gross rental income during 1996 is due to expiring leases and the sale
of equipment from the Partnership's portfolio as well as additional
investment in sales agency agreements which provide for equity in
residual values of equipment but provide no current rental revenue or
debt service requirements to the Partnership. Both the three and nine
month periods ended September 30, 1996 benefited from lower levels of
depreciation which were the result of the use of accelerated methods
of depreciation for a portion of the Partnership's portfolio in prior
years and the remarketing of fully depreciated equipment. However,
this benefit was substantially offset in the third quarter of 1996 by
realized losses on the sales of certain equipment whose value was
negatively affected by the manufacturer's introduction of more
technologically advanced equipment. Additionally, interest income was
lower during 1996 as a result of lower cash balances available for
investment.
The Partnership generated $13,567,723 from operations and sales of
equipment during the nine months ended September 30, 1996. The
Partnership used these funds, proceeds from notes payable and cash on
hand to acquire additional equipment of $11,391,650, make scheduled
payments on notes payable of $8,820,091 and make distributions to
partners of $3,071,369.
The Partnership paid distributions of $.67 per Limited Partner unit on
the 15th of July, August and September 1996. To date, the Partnership
has made cash distributions to the Limited Partners ranging from 41%
to 63% of their initial investment, depending on when the Limited
Partners entered the Partnership. The objective of the Partnership is
to return the Limited Partner's investment through current
distributions and provide a return on this investment by continued
distributions for as long as the equipment continues to be leased.
Management, on a periodic basis, reviews the Partnership's projected
performance. The most recent review indicates that revenues generated
by the Partnership from certain lease renewals and remarketings after
the initial lease terms have been lower than anticipated, as a result
of more rapid obsolescence in high technology equipment. Based on an
analysis of the remaining assets in the Partnership's portfolio, the
General Partner presently estimates that the continued cash
distributions will return the entire initial investment of the Limited
Partners and a return thereon, however, the magnitude of the return
may be lower than originally anticipated at the inception of the
Partnership. The General Partner will continue to report on the
Limited Partners' return of investment with each cash distribution and
the General Partner intends to pursue additional lease investment
opportunities to increase the Partnership's distributions.
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
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 IV Limited Partnership
Partnership (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date: November 14, 1996 /s/ J. Frank Keohane
President and
Principal Executive Officer
Date: November 14, 1996 /s/ Richard F. Sullivan
Vice President
Principal Accounting and
Finance Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted form CSA Income
Fund IV Limited Partnership's Statement of Financial Position as of September
30, 1996 and Statement of Operations for the nine months ended and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 1699242
<SECURITIES> 0
<RECEIVABLES> 1214062
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 74191126
<DEPRECIATION> 50017084
<TOTAL-ASSETS> 27087346
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 16931651
<TOTAL-LIABILITY-AND-EQUITY> 27087346
<SALES> 0
<TOTAL-REVENUES> 14337669
<CGS> 12061098
<TOTAL-COSTS> 13095141
<OTHER-EXPENSES> 222718
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 811325
<INCOME-PRETAX> 1242528
<INCOME-TAX> 0
<INCOME-CONTINUING> 1242528
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1242528
<EPS-PRIMARY> 2.43
<EPS-DILUTED> 2.43
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
