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 June 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 JUNE 30, 1996 (UNAUDITED) AND
DECEMBER 31, 1995
______________________________________________________________________
<CAPTION>
(Unaudited)
June 30, December 31,
1996 1995
<S> <C> <C>
Assets
Cash and cash equivalents $ 1,780,647 $ 6,795,047
Rentals receivable 1,403,584 369,887
Value added tax deposits 80,894 89,913
Accounts receivable - affiliates 726,472 611,953
Remarketing receivable - 31,160
Rental equipment, at cost 79,348,544 77,469,983
Less accumulated depreciation (51,189,463) (51,633,820)
Net rental equipment 28,159,081 25,836,163
Total assets $ 32,150,678 $ 33,734,123
Liabilities and partners' capital
Accrued management fees $ 138,029 $ 40,781
Accrued interest expense 81,568 113,562
Accounts payable 30,095 37,968
Accounts payable - equipment 426,483 84,691
Accounts payable - affiliates 1,770,783 85,240
Deferred income 20,757 226,089
Notes payable 11,298,134 13,804,399
Limited recourse notes payable 571,704 580,901
Total liabilities 14,337,553 14,973,631
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net loss (21,928) (32,930)
Cumulative cash distributions (267,111) (246,635)
(288,039) (278,565)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net loss (2,170,954) (3,260,165)
Cumulative cash distributions (25,928,921) (23,901,817)
18,101,164 19,039,057
Total partners' capital 17,813,125 18,760,492
Total liabilities and
partners' capital $ 32,150,678 $ 33,734,123
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTH
PERIODS ENDED JUNE 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS SIX MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 5,649,629 $ 4,964,934 $10,060,502 $10,640,674
Interest income 8,093 85,173 56,958 173,585
Gain on sale
of equipment 43,228 82,021 341,902 140,952
Net gain (loss) on
foreign currency (7,676) 51,751 (5,639) 95,012
Total revenues 5,693,274 5,183,879 10,453,723 11,050,223
Costs and expenses:
Depreciation and
amortization 4,448,005 4,381,161 7,904,799 9,153,174
Interest 252,963 508,517 571,998 1,029,959
Management fees 423,892 356,035 735,927 686,285
General and
administrative 53,436 120,209 140,787 220,659
Total expenses 5,178,296 5,365,922 9,353,511 11,090,077
Net income (loss) $ 514,978 $ (182,043) $ 1,100,212 $ (39,854)
Net income (loss)
allocation:
General Partner $ 5,150 $ (1,821) $ 11,002 $ (399)
Limited Partners 509,828 (180,222) 1,089,210 (39,455)
$ 514,978 $(182,043) $ 1,100,212 $ (39,854)
Net income (loss) per
Limited Partnership
Unit $ 1.01 $ ( .36) $ 2.15 $ ( .08)
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 SIX MONTH
PERIODS ENDED JUNE 30, 1996 AND 1995
______________________________________________________________________
<CAPTION>
THREE MONTHS SIX MONTHS
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 4,475,271 $ 6,060,020 $ 8,775,500 $11,190,664
Cash paid for
operating and
management
expenses (377,184) (609,513) (787,338) (992,214)
Interest paid (209,766) (501,117) (494,906) (970,732)
Interest received 8,093 85,173 56,958 173,585
Net cash from
operations 3,896,414 5,034,563 7,550,214 9,401,303
Cash flow from
investments:
Value added tax 243 (26,420) 9,019 (130,580)
Purchase of
equipment (5,570,090) (288,071) (10,682,964) (1,443,507)
Sale of equipment 233,806 132,262 841,141 2,885,681
Net cash from
(used for)
investments (5,336,041) (182,229) (9,832,804) 1,311,594
Cash flows from
financing:
Change in amounts due
to/from affiliates 1,883,289 (603,432) 1,571,023 577,269
Accounts payable -
equipment purchases 389,155 (17,906) 341,792 (437,809)
Proceeds from notes
payable 3,274,476 1,050,007 3,274,476 3,796,772
Repayment of notes
payable (2,944,123) (4,495,541) (5,871,521)( 7,588,449)
Payment of cash
distributions (1,023,791) (1,023,789) (2,047,580) (2,047,579)
Net cash from
(used for)
financing 1,579,006 (5,090,661) (2,731,810) (5,699,796)
Net change in cash and
cash equivalents 139,379 (238,327) (5,014,400) 5,013,101
Cash and cash
equivalents at
beginning of period 1,641,268 7,218,698 6,795,047 1,967,270
Cash and cash
equivalents at
end of period $ 1,780,647 $ 6,980,371 $1,780,647 $ 6,980,371
</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 June 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
______________________________________________________________________
Rental income was $5,649,629 and $4,964,934 for the quarters ended
June 30, 1996 and 1995, respectively. Net income for the second
quarter of 1996 was $514,978 compared to a net loss of $182,043 for
the same quarter in 1995. For the six months ended June 30, 1996 and
1995, rental income was $10,060,502 and $10,640,674, respectively.
Net income for the six months ended June 30, 1996 was $1,100,212
compared to a net loss of $39,854 during the corresponding period in
1995. Rental income increased significantly in the second quarter of
1996 due, in part, to the finalization of certain lease negotiations
resulting in the recognition of $490,403 in back rents which after
provisions for depreciation and other related expenses increased net
income for the second quarter by $78,678. The three and six month
periods ended June 30,1996 also 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.
The Partnership generated $8,391,355 from operations and sales of
equipment during the six months ended June 30, 1996. During this
period, the Partnership used these funds, funds received from debt
financings and cash on hand to acquire additional equipment of
$10,682,964, make payments on notes payable of $5,871,521 and make
distributions to partners of $2,047,580.
The Partnership paid distributions of $.67 per Limited Partnership
unit on the 15th of April, May, and June 1996. To date, the
Partnership has made cash distributions to the Limited Partners
ranging from 39% to 61% 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: August 13, 1996 /s/ J. Frank Keohane
President and
Principal Executive Officer
Date: August 13, 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 from CSA Income
Fund IV Limited Partnership's Statement of Financial Position as of June 30,
1996 and Statement of Operations for the six months then ended and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,780,647
<SECURITIES> 0
<RECEIVABLES> 2,210,950
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 79,348,544
<DEPRECIATION> 51,189,463
<TOTAL-ASSETS> 32,150,678
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 17,813,125
<TOTAL-LIABILITY-AND-EQUITY> 32,150,678
<SALES> 0
<TOTAL-REVENUES> 10,453,723
<CGS> 8,640,726
<TOTAL-COSTS> 9,353,511
<OTHER-EXPENSES> 140,787
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 571,998
<INCOME-PRETAX> 1,100,212
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,100,212
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,100,212
<EPS-PRIMARY> 2.15
<EPS-DILUTED> 2.15
<FN>
<F1> The Registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
