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 March 31, 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 33-32744
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 MARCH 31, 1997 (UNAUDITED)
AND DECEMBER 31, 1996
1997 1996
<S> <C> <C>
Assets
Cash and cash equivalents $ 583,324 $ 1,187,208
Rents receivable 1,161,292 872,371
Value added tax receivable 82,494 80,511
Accounts receivable - affiliates 783,464 416,589
Remarketing receivable 5,646 153,817
Rental equipment, at cost 52,433,152 59,434,351
Less accumulated depreciation (32,056,930) (36,646,360)
Net rental equipment 20,376,222 22,787,991
Total assets $ 22,992,442 $ 25,498,487
Liabilities and partners'
capital
Accrued management fees $ 94,013 $ 54,316
Accrued interest expense 69,655 69,655
Accounts payable and accrued expenses 22,241 28,701
Accounts payable - affiliates 1,032,127
Deferred income 72,304 74,545
Notes payable 6,302,809 7,573,033
Limited recourse notes payable 226,994 228,562
Total liabilities 6,788,016 9,060,939
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net loss (7,301) (15,208)
Cumulative cash distributions (297,825) (287,587)
(304,126) (301,795)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net loss (722,910) (1,505,671)
Cumulative cash distributions (28,969,577) (27,956,025)
16,508,552 16,739,343
Total partners' capital 16,204,426 16,437,548
Total liabilities and
partners' capital $ 22,992,442 $ 25,498,487
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED
MARCH 31, 1997 AND 1996
<CAPTION>
1997 1996
<S> <C> <C>
Revenues:
Rental income $ 2,915,302 $ 4,410,873
Interest income 60,391 48,865
Gain on sale of equipment 364,148 298,674
Net gain on foreign currency
transactions 8,374 2,037
Total revenues 3,348,215 4,760,449
Costs and expenses:
Depreciation and amortization 2,064,766 3,456,794
Interest 120,172 319,035
Management fees 300,697 312,035
General and administrative 71,912 87,351
Total expenses 2,557,547 4,175,215
Net income $ 790,668 $ 585,234
Net income allocation:
General Partner 7,907 $ 5,852
Limited Partners 782,761 579,382
$ 790,668 $ 585,234
Net income per weighted average
Limited Partnership Unit $ 1.54 $ 1.14
Number of weighted average
Limited Partnership Units 506,776 506,776
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED
MARCH 31,1997 AND 1996
<CAPTION>
1997 1996
<S> <C> <C>
Cash flows from operations:
Cash received from rental
of equipment $ 2,644,117 $ 4,300,229
Cash paid for operating and
management expenses (339,372) (410,154)
Interest paid (120,172) (285,140)
Interest received 60,391 48,865
Net cash from operations 2,244,964 3,653,800
Cash flow from investments:
Value added tax (1,983) 8,776
Purchase of equipment (1,004,726) (5,112,874)
Sale of equipment 1,852,445 607,335
Net cash provided by
(used for) investments 845,736 (4,496,763)
Cash flows from financing:
Equipment purchases payable (47,363)
Advances to/from affiliates (1,399,002) (312,266)
Proceeds from notes payable 566 858
Repayment of notes payable (1,838,650) (2,845,815)
Payment of cash distributions (1,023,790) (1,023,789)
Net cash used for
financing (3,694,584) (4,310,816)
Net change in cash
and cash equivalents (603,884) (5,153,779)
Cash and cash equivalents
at beginning of period 1,187,208 6,795,047
Cash and cash equivalents
at end of period $ 583,324 $ 1,641,268
</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, 1996.
In the General Partner's opinion, the unaudited financial statements
reflect all adjustments which are of a normal recurring nature,
necessary to present fairly the financial position of CSA Income Fund
IV Limited Partnership as of March 31, 1997 and March 31, 1996 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 $2,915,302 and $4,410,873 and net income was
$790,668 and $585,234 for the quarters ended March 31, 1997 and 1996,
respectively. The decrease in rental income was due primarily to the
expiration of a major portion of the TIC Leasing Corp. portfolio
acquired from Turner Broadcasting System Inc. during 1994. Rental
income was also reduced due to 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. The decrease in revenue was more than offset by
lower levels of depreciation which was the result of the use of
accelerated methods of depreciation for certain equipment in prior
years and the remarketing of fully depreciated equipment.
The Partnership generated $4,097,409 in cash flow from operations and
from the sale of equipment during the three months ended March 31,
1997. This cash along with cash on hand was used to purchase
equipment, repay debt and pay cash distributions to the partners. The
Partnership acquired $1,004,726 in additional equipment, repaid $1,852,445
of notes payable and made cash distributions to partners of $1,023,790.
The Partnership paid distributions of $.67 per limited partnership
unit on the 15th of January, February and March 1997.
To date, the Partnership has made cash distributions to the Limited Partners
ranging from 45% to 67% 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 as long as the
equipment continues to be leased.
Management, on a periodic basis, reviews the Partnership's projected
performance. 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
ART 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 - There were no reports filed
during the first quarter of 1997.
<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 (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date: 05/15/97 /S/ J. Frank Keohane
President and
Principal Executive Officer
Date: 05/15/97 /S/ Richard P. Timmons
Controller
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 March 31,
1997 and Statement of Operations for the three months then ended and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 583,324
<SECURITIES> 0
<RECEIVABLES> 2,032,896
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 52,433,152
<DEPRECIATION> 32,056,930
<TOTAL-ASSETS> 22,992,442
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 16,204,426
<TOTAL-LIABILITY-AND-EQUITY> 22,992,442
<SALES> 0
<TOTAL-REVENUES> 3,348,215
<CGS> 0
<TOTAL-COSTS> 2,365,463
<OTHER-EXPENSES> 71,912
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 120,172
<INCOME-PRETAX> 790,668
<INCOME-TAX> 0
<INCOME-CONTINUING> 790,668
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 790,668
<EPS-PRIMARY> 1.54
<EPS-DILUTED> 1.54
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Postition.
</FN>
</TABLE>
