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 33-32744
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 30,1997 (Unaudited) and December 31, 1996
<CAPTION>
(Unaudited)
September 30, December 31,
1997 1996
<S> <C> <C>
Assets
Cash and cash equivalents $ 1,773,787 $ 1,187,208
Rentals receivable 1,001,993 872,371
Value added tax deposits 15,056 80,511
Accounts receivable-affiliates 667,026 416,589
Remarketing receivable 26,994 153,817
Rental equipment, at cost 57,010,225 59,434,351
Less accumulated depreciation (23,648,710) (36,646,360)
Net rental equipment 33,361,515 22,787,991
Total assets $ 36,846,371 $ 25,498,487
Liabilities and partners' capital
Liabilities:
Accrued management fees $ 118,715 $ 54,316
Accrued interest expense 57,201 69,655
Accounts payable 42,486 28,701
Accounts payable - affiliates - 1,032,127
Deferred income 76,377 74,545
Notes payable 20,566,879 7,573,033
Limited recourse notes payable - 228,562
Total liabilities 20,861,658 9,060,939
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net gain (loss) 8,418 (15,208)
Cumulative cash distributions (315,740) (287,587)
(306,322) (301,795)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net gain (loss) 833,289 (1,505,671)
Cumulative cash distributions (30,743,293) (27,956,025)
16,291,035 16,739,343
Total partners' capital 15,984,713 16,437,548
Total liabilities and
partners' capital $ 36,846,371 $ 25,498,487
</TABLE>
<PAGE>
<TABLE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
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 $ 3,297,176 $ 4,273,789 $ 8,833,081 $14,334,291
Interest income 20,104 19,803 93,132 76,761
Gain (loss) on sale
of equipment 219,669 (395,052) 651,351 (53,150)
Net gain (loss) on
foreign currency (8,767) (14,594) 10,128 (20,233)
Total revenues 3,528,182 3,883,946 9,587,692 14,337,669
Costs and expenses:
Depreciation and
amortization 2,103,465 3,061,845 5,471,431 10,966,644
Interest 386,758 239,327 661,084 811,325
Management fees 310,036 358,528 900,649 1,094,454
General and
administrative 56,732 81,931 191,942 222,718
Total expenses 2,856,991 3,741,631 7,225,106 13,095,141
Net income $ 671,191 $ 142,315 $ 2,362,586 $ 1,242,528
Net income allocation:
General Partner $ 6,712 $ 1,423 $ 23,626 $ 12,425
Limited Partners 664,479 140,892 2,338,960 1,230,103
$ 671,191 $ 142,315 $ 2,362,586 $ 1,242,528
Net income per
Limited Partnership
Unit $ 1.32 $ 0.28 $ 4.62 $ 2.43
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)
<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 $ 3,580,947 $ 4,864,625 $ 9,010,426 $13,667,471
Cash paid for
operating and
management expenses (374,188) (509,962) (1,014,407) (1,297,300)
Interest paid (391,162) (239,327) (673,538) (843,319)
Interest received 20,104 19,803 93,132 76,761
Net cash from
operations 2,835,701 4,135,139 7,415,613 11,603,613
Cash flow from
investments:
Value added tax 65,471 (68,502) 65,455 (59,483)
Purchase of
equipment (14,578,910) (708,686) (20,122,704) 1,391,650)
Sale of equipment 2,550,286 1,122,812 4,626,420 1,964,110
Net cash from(used
for) investments (11,963,153) 345,624 (15,430,829) (9,487,023)
Cash flows from
financing:
Change in amounts
due to/from
affiliates (612,605) (668,977) (1,348,068) 902,046
Accounts Payable
equipment purchase - (426,483) - (84,691)
Proceeds from notes
payable 13,339,433 587,234 17,487,477 3,861,710
Repayment of notes
payable (1,821,363) (3,030,153) (4,722,193) (8,820,091)
Payment of cash
distributions (767,842) (1,023,789) (2,815,421) 3,071,369)
Net cash(used
for) financing 10,137,623 (4,562,168) 8,601,795 (7,212,395)
Net change in cash and
cash equivalents 1,010,171 (81,405) 586,579 (5,095,805)
Cash and cash
equivalents at
beginning of period 763,616 1,780,647 1,187,208 6,795,047
Cash and cash
equivalents
at end of period $1,773,787 $ 1,699,242 $1,773,787 $ 1,699,242
</TABLE>
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
NOTE TO FINANCIAL STATEMENTS
The quarterly financial statements of the Partnership presented herein
are without audit except for the December 31, 1996 Balance Sheet
information. 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 IV Limited Partnership 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 IV LIMITED PARTNERSHIP
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $3,297,176 and $4,273,789 and net income was $671,191
and $142,315 for the quarters ended September 30, 1997 and 1996,
respectively. For the nine months ended September 30, 1997 and 1996,
rental income was $8,833,081 and $14,334,291 and net income was
$2,362,586 and $1,242,528, respectively. The decrease in rental income
during 1997 was due to expiring leases as well as additional investment
in European Sales Agency Agreements, the accounting for which provides
no current rental revenue or debt service requirements to the
Partnership. The decrease in rental income in both the three and nine
month periods ended September 30, 1997 was offset by 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. Net income was increased by gains on the sale of
equipment for the quarter ended September 30, 1997 of $219,669 as
compared to a loss of ($395,052) for the comparable quarter last year.
The gain on sale of equipment for the nine months ended September 30,
1997, was $651,351 as compared to a loss of ($53,150) for the same
period last year.
The Partnership generated $12,042,033 from operations and sales of
equipment during the nine months ended September 30, 1997. The
Partnership used these funds, proceeds from notes payable and cash on
hand to acquire additional equipment of $20,122,704, make scheduled
payments on notes payable of $4,722,193 and make distributions to
partners of $2,815,421.
The Partnership paid distributions of $.50 per Limited Partner unit on
the 15th of July, August and September 1997. To date, the Partnership
has made cash distributions to the Limited Partners ranging from 49% to
71% 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. 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 (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date: 11/14/97 /s/ J. Frank Keohane
J. Frank Keohane
President & Treasurer
Principal Executive Officer
Date: 11/14/97 /s/ Richard F. Sullivan
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 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> 1,773,787
<SECURITIES> 0
<RECEIVABLES> 1,711,069
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 57,010,225
<DEPRECIATION> 23,648,710
<TOTAL-ASSETS> 36,846,371
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 15,984,713
<TOTAL-LIABILITY-AND-EQUITY> 36,846,371
<SALES> 0
<TOTAL-REVENUES> 9,587,692
<CGS> 0
<TOTAL-COSTS> 6,372,080
<OTHER-EXPENSES> 191,942
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 661,084
<INCOME-PRETAX> 2,362,586
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,362,586
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,362,586
<EPS-PRIMARY> 4.62
<EPS-DILUTED> 4.62
<FN>
<F1>The Registrant maintains an unclassified Statement of Financial Position
</FN>
</TABLE>
