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, 1999
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 fiscar 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
STATEMENTS OF FINANCIAL POSITION AS OF
<TABLE>
<CAPTION>
(Unaudited)
September 30, December 31,
1999 1998
<S> <C> <C>
Assets
Cash and cash equivalents $ 4,172,193 $ 560,193
Rentals receivable 276,155 391,628
Accounts receivable - affiliates 280,252 524,059
Other receivable 21,629 218,343
Rental equipment, at cost 53,275,501 59,956,146
Less accumulated depreciation (33,511,242) (30,958,816)
Net rental equipment 19,764,259 28,997,330
Total assets $ 24,514,488 $ 30,691,553
Liabilities and partners' capital
Accrued management fees $ 69,060 $ 127,500
Accrued interest expense 17,124 32,965
Accounts payable 13,671 24,745
Deferred income 79,822 132,686
Notes payable 10,334,827 15,203,836
Total liabilities 10,514,504 15,521,732
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 49,999 38,662
Cumulative cash distributions (377,168) (354,134)
(326,169) (314,472)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 4,949,719 3,827,366
Cumulative cash distributions (36,824,605) (34,544,112)
14,326,153 15,484,293
Total partners' capital 13,999,984 15,169,821
Total liabilities and
partners' capital $ 24,514,488 $ 30,691,553
</TABLE>
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE
MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
Three Months Nine Months
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 3,223,689 $ 4,103,051 $11,310,065 $11,792,661
Interest income 61,886 17,233 117,733 57,794
Gain on sale
of equipment 91,183 48,852 230,000 695,906
Net gain on
foreign currency 20,974 1,704 13,125 17,147
Total revenues 3,397,732 4,170,840 11,670,923 12,563,508
Costs and expenses:
Depreciation 2,582,507 2,746,065 8,567,472 7,943,493
Interest 242,621 404,981 839,221 1,237,610
Management fees 261,935 366,692 919,059 1,086,027
General and
administrative 82,958 60,544 211,480 183,942
Total expenses 3,170,021 3,578,282 10,537,232 10,451,072
Net income $ 227,711 $ 592,558 $1,133,691 $ 2,112,436
Net income allocation:
General Partner $ 2,277 $ 5,926 $ 11,337 $ 21,125
Limited Partners 225,434 586,632 1,122,354 2,091,311
$ 227,711 $ 592,558 $1,133,691 $ 2,112,436
Net income per
weighted average
Limited Partnership
Unit $ 0.45 $ 1.16 $ 2.21 $ 4.13
Number of weighted
average Limited
Partnership Units 506,776 506,776 506,776 506,776
</TABLE>
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Cash flows from
operations:
Cash received from
rental of
equipment $3,249,691 $ 4,146,867 $11,385,797 $11,876,680
Cash paid for
operating and
management expenses (362,550) (418,998) (1,251,344) (1,256,023)
Interest paid (248,038) (409,867) (855,062) (1,251,894)
Interest received 61,886 17,233 117,733 57,794
Net cash from
operations 2,700,989 3,335,235 9,397,124 9,426,557
Cash flow from investments:
Purchase of equipment (919,580) (2,276,516) (1,228,380) (6,365,039)
Sale of equipment 1,540,847 211,445 2,320,695 1,435,018
Net cash used
for investments 621,267 (2,065,071) 1,092,315 (4,930,021)
Cash flows from financing:
Advances to/from
affiliates 20,341 1,113,211 295,097 937
Proceeds from notes
payable 470,274 1,643,355 3,069,485 4,628,724
Repayment of notes
payable (2,294,877) (2,817,779) (7,938,494) (7,565,060)
Payment of cash
distributions (767,844) (767,842) (2,303,527) (2,303,527)
Net cash from (used
for) financing (2,572,106) (829,055) (6,877,439) (5,238,926)
Net change in cash and
cash equivalents 750,150 441,109 3,612,000 (742,390)
Cash and cash equivalents
at beginning of
period 3,422,043 563,267 560,193 1,746,766
Cash and cash
equivalents
at end of period $4,172,193 $1,004,376 $4,172,193 $1,004,376
</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 balance sheet information as of December
31,1998. 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,
1998.
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, 1999 and September 30, 1998 and
the results of operations and cash flows for the periods presented
therein.
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Total revenue was $3,397,732 and $4,170,840 and net income was $227,711
and $592,558 for the quarters ended September 30, 1999 and 1998,
respectively. For the nine months ended September 30, 1999 and 1998,
total revenue was $11,670,923 and $12,563,508, and net income was
$1,133,691 and $2,112,436. The decreases in total revenue and net income were
due primarily to anticipated lease expirations of a few large leases in the
third quarter of 1999. The equipment from these leases is currently being
remarketed, with a portion of the equipment sales completed in the third
quarter.
The Partnership generated cash flow of $11,717,819 from operations and
sales of equipment during the nine months ended September 30, 1999.
During this period, the Partnership used these funds, funds received
from debt financings and cash on hand to acquire additional equipment
of $1,228,380, make payments on notes payable of $7,938,494 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 1999. CSA Income Fund IV Limited
Partnership increased the October distribution paid on November 15th from an
annualized rate of 6% to 8%. The General Partner will continue to review the
distribution percentage as the Partnership approaches wind-up. Future
distributions will be based on the Partnership's current cash position, as
well as, future cash flow projections. The General Partner intends to provide
the Limited Partners with the optimal distribution rate throughout the remaining
life of the Partnership.
The General Partner anticipates beginning the wind-up process early next year,
which may continue into calendar year 2002. To date, the Partnership has made
cash distributions to the Limited Partners ranging from 61% to 83% 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 from equipment leasing and ultimate
equipment disposition.
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>
CSA INCOME FUND IV LIMITED PARTNERSHIP
PART II
<TABLE>
<CAPTION>
<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 1999.
</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:
J. Frank Keohane
President
Principal Executive Officer
Date:
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 IV Limited Partnership's Statement of Financial Position as of September
30, 1999 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-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 4,172,193
<SECURITIES> 0
<RECEIVABLES> 578,036
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 53,275,501
<DEPRECIATION> (33,511,242)
<TOTAL-ASSETS> 24,514,488
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 13,999,984
<TOTAL-LIABILITY-AND-EQUITY> 24,514,488
<SALES> 0
<TOTAL-REVENUES> 11,670,923
<CGS> 0
<TOTAL-COSTS> 9,486,531
<OTHER-EXPENSES> 211,480
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 839,221
<INCOME-PRETAX> 1,133,691
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,133,691
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,133,691
<EPS-BASIC> 2.21
<EPS-DILUTED> 2.21
<FN>
<F1>The registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
