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, 1998
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:
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PART I - FINANCIAL INFORMATION
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF
<TABLE>
<CAPTION>
(Unaudited)
September 30, December 31,
1998 1997
<S> <C> <C>
Assets
Cash and cash equivalents $ 1,004,377 $ 1,746,766
Rentals receivable 462,223 559,640
Value added tax receivable - 3,028
Accounts receivable - affiliates 291,867 292,804
Other receivable - 9,290
Rental equipment, at cost 63,775,808 59,318,040
Less accumulated depreciation (31,959,531) (25,193,487)
Net rental equipment 31,816,277 34,124,553
Total assets $ 33,574,744 $ 36,736,081
Liabilities and partners' capital
Accrued management fees $ 140,024 $ 103,996
Accrued interest expense 37,977 52,260
Accounts payable 20,976 43,058
Deferred income 9,315 42,889
Notes payable 17,987,006 20,923,341
Total liabilities 18,195,298 21,165,544
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income (loss) 33,078 11,955
Cumulative cash distributions (346,454) (323,420)
(312,376) (310,465)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income (loss) 3,274,732 1,183,419
Cumulative cash distributions (33,783,949) (31,503,456)
15,691,822 15,881,002
Total partners' capital 15,379,446 15,570,537
Total liabilities and
partners' capital $ 33,574,744 $ 36,736,081
</TABLE>
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<TABLE>
<CAPTION>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE
MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997
Three Months Nine Months
September 30, September 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 4,103,051 $ 3,297,176 $11,792,661 $ 8,833,081
Interest income 17,233 20,104 57,794 93,132
Gain on sale
of equipment 48,852 219,669 695,906 651,351
Net gain (loss) on
foreign currency 1,704 (8,767) 17,147 10,128
Total revenues 4,170,840 3,528,182 12,563,508 9,587,692
Costs and expenses:
Depreciation 2,746,065 2,103,465 7,943,493 5,471,431
Interest 404,981 386,758 1,237,610 661,084
Management fees 366,692 310,036 1,086,027 900,649
General and
administrative 60,544 56,732 183,942 191,942
Total expenses 3,578,282 2,856,991 10,451,072 7,225,106
Net income $ 592,558 $ 671,191 $ 2,112,436 $ 2,362,586
Net income allocation:
General Partner $ 5,926 $ 6,712 $ 21,125 $ 23,626
Limited Partners 586,632 664,479 2,091,311 2,338,960
$ 592,558 $ 671,191 $ 2,112,436 $ 2,362,586
Net income per
weighted average
Limited Partnership
Unit $ 1.16 $ 1.32 $ 4.13 $ 4.62
Number of weighted
average Limited
Partnership Units 506,776 506,776 506,776 506,776
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $ 4,146,867 $ 3,580,947 $11,876,680 $ 9,010,426
Cash paid for
operating and
management expenses (418,998) (347,188) (1,256,023) (1,014,407)
Interest paid (409,867) (391,162) (1,251,894) (673,538)
Interest received 17,233 20,104 57,794 93,132
Net cash from
operations 3,335,235 2,835,701 9,426,557 7,415,613
Cash flow from investments:
Value added tax - 65,471 - 65,455
Purchase of equipment (2,276,516)(14,578,910) (6,365,039) (20,122,704)
Sale of equipment 211,445 2,550,286 1,435,018 4,626,420
Net cash from (used
for) investments (2,065,071)(11,963,153) (4,930,021) (15,430,829)
Cash flows from financing:
Advances to/from
affiliates 1,113,211 (612,605) 937 (1,348,068)
Proceeds from notes
payable 1,643,355 13,339,433 4,628,724 17,487,477
Repayment of notes
payable (2,817,779) (1,821,363) (7,565,060) (4,722,193)
Payment of cash
distributions (767,842) (767,842) (2,303,527) (2,815,421)
Net cash used
for financing (829,055) 10,137,623 (5,238,926) 8,601,795
Net change in cash and
cash equivalents 441,109 1,010,171 (742,390) 586,579
Cash and cash equivalents
at beginning of period 563,267 763,616 1,746,766 1,187,208
Cash and cash equivalents
at end of period $1,004,376 $1,773,787 $1,004,376 $1,773,787
</TABLE>
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CSA INCOME FUND IV LIMITED PARTNERSHIP
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,
1997. 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,
1997.
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 September 30, 1998 and December 31, 1997 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
Total revenue was $4,170,840 and $3,528,182 and net income was $592,558
and $671,191 for the quarters ended September 30, 1998 and 1997,
respectively. For the nine months ended September 30, 1998 and 1997, total
revenue was $12,563,508 and $9,587,692, and net income was $2,112,436 and
$2,362,586. The increase in total revenue was due primarily to the
new equipment leases added during 1998 and 1997. The decrease in net income
was primarily due to the recording of $219,699 in gains on sale of equipment
in the quarter ended September 30, 1997 vs $48,852 for the same period
in 1998.
The Partnership generated cash flow of $10,861,575 from operations and sales
of equipment during the nine months ended September 30, 1998. During this
period, the Partnership used these funds, funds received from debt
financings and cash on hand to acquire additional equipment of $6,365,039,
make payments on notes payable of $7,565,060 and make distributions to
partners of $2,303,527.
The Partnership paid distributions of $.50 per Limited Partnership unit
on the 15th of July, August, and September 1998. To date, the Partnership
has made cash distributions to the Limited Partners ranging from 55% to 77%
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 reviews the Partnership's projected performance on a periodic
basis. Based on that analysis, 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>
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<CAPTION>
CSA INCOME FUND IV LIMITED PARTNERSHIP
PART II
<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 1998.
</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 IV Limited Partnership
Partnership (Registrant)
By its General Partner,
CSA Lease Funds, Inc.
Date: 11/13/98
/s/ J. Frank Keohane
President
Principal Executive Officer
Date: 11/13/98
/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 IV's Statement of Financial Position as of
September 30, 1998 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-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 1,004,377
<SECURITIES> 0
<RECEIVABLES> 754,090
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 63,775,808
<DEPRECIATION> 31,959,531
<TOTAL-ASSETS> 33,574,744
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 15,379,446
<TOTAL-LIABILITY-AND-EQUITY> 33,574,744
<SALES> 0
<TOTAL-REVENUES> 12,563,508
<CGS> 0
<TOTAL-COSTS> 9,029,520
<OTHER-EXPENSES> 183,942
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,237,610
<INCOME-PRETAX> 2,112,436
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,112,436
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,112,436
<EPS-PRIMARY> 4.13
<EPS-DILUTED> 4.13
<FN>
<F1>The registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
