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, 2000
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
STATEMENTS OF FINANCIAL POSITION AS OF
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
Unaudited
<S> <C> <C>
Assets
Cash and cash equivalents $ 4,328,067 $ 3,679,408
Rentals receivable 225,290 326,758
Accounts receivable - affiliates 242,238 223,076
Remarketing Receivable 70,669 -
Rental equipment, at cost 49,670,282 52,073,878
Less accumulated depreciation (35,033,376) (34,683,355)
Net rental equipment 14,636,906 17,390,523
Total assets $ 19,503,170 $ 21,619,765
Liabilities and partners' capital
Accrued management fees $ 91,424 $ 93,749
Accrued interest expense 5,856 11,562
Accounts payable and accrued expenses 24,903 12,982
Deferred income 61,637 138,508
Notes Payable 6,778,841 8,185,541
Total liabilities 6,962,661 8,442,342
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 55,026 51,158
Cumulative cash distributions (396,790) (386,554)
(340,764) (334,396)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 5,447,477 5,064,472
Cumulative cash distributions (38,767,243) (37,753,692)
12,881,273 13,511,819
Total partners' capital 12,540,509 13,177,423
Total liabilities and
Partners' capital $ 19,503,170 $ 21,619,765
</TABLE>
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
Unaudited Quarters Ended March 31,
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Revenues:
Rental income $ 2,812,258 $ 4,076,247
Interest income 45,497 10,829
Gain on sale of equipment 315,385 33,909
Net gain (loss) on foreign
currency transactions (2,806) 2,107
Total revenues 3,170,334 4,123,092
Costs and expenses:
Depreciation 2,290,910 2,979,524
Interest 160,700 308,966
Management fees 217,675 347,633
General and administrative 114,176 69,109
Total expenses 2,783,461 3,705,232
Net income $ 386,873 $ 417,860
Net income allocation:
General Partner $ 3,868 $ 4,179
Limited Partners 383,005 413,681
$ 386,873 $ 417,860
Net income per weighted average
Limited Partnership Unit $ .76 $ .82
Number of weighted average
Limited Partnership Units 506,776 506,776
</TABLE>
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
Unaudited Quarter Ended March 31,
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Cash flows from operations:
Cash received from rental
of equipment $ 2,834,050 $ 3,946,617
Cash paid for operating and
management expenses (322,255) (477,186)
Interest paid (166,406) (313,911)
Interest received 45,497 10,829
Net cash from operations 2,390,886 3,166,349
Cash flow from investments -
Sale of equipment 707,422 550,677
Cash flows from financing:
Advances to/from affiliates (19,162) 251,278
Proceeds from notes payable 485,037 2,409,058
Repayment of notes payable (1,891,737) (2,911,130)
Payment of cash distributions (1,023,787) (767,841)
Net cash used for
Financing (2,449,649) (1,018,635)
Net change in cash
and cash equivalents 648,659 2,698,391
Cash and cash equivalents
at beginning of period 3,679,408 560,193
Cash and cash equivalents
at end of period $ 4,328,067 $ 3,258,584
</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, 1999.
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, 2000 and the results of
operations and cash flows for the three month periods ended March 31,
2000 and March 31, 1999.
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $2,812,258 and $4,076,247 and net income was $386,873 and
$417,860 for the quarters ended March 31, 2000 and March 31, 1999,
respectively. The decrease in gross rental income and net income is due
primarily to anticipated lease expirations. The gain on sale of
equipment recorded in the quarter ended March 31, 2000 was $315,385 as
compared to $33,909 for the same period in 1999. General and Administrative
costs increased during the first quarter of year 2000 as compared to the
first quarter of 1999, primarily due to the storage and refurbishment costs
related to expired equipment, a significant portion of which was sold during
the quarter.
The Partnership generated $3,098,308 in cash flow from operations and
from the sale of equipment during the three months ended March 31,
2000. The Partnership utilized these funds to reduce outstanding note payable
by $1,891,737 and and made cash distributions to partners of $1,023,787.
The Partnership paid distributions of $.67 per limited partnership unit
on the 15th of January, February and March 2000.
To date, the Partnership has made cash distributions to the Limited
Partners ranging from 65% to 87% 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.
The General Partner, as previously stated, anticipates beginning the
wind up of the Partnership in 2000, which may continue into calendar
year 2002. The Partnership may, as reported in the 1999 Annual Report,
invest in some short term leases prior to starting the wind up to
maximize the overall return to the Limited Partners.
CSA Income Fund IV Limited Partnership increased the October 1999
monthly distributions from an annualized rate of 6% to 8%. Future
distributions will be based on the Partnership's current cash position,
as well as, forecasted cash flow projections. It is not expected that
future distributions will be decreased from the current levels.
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.
<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 - There were no reports filed during the
first quarter of 2000.
</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 (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 Limited Partnership IV's Statement of Financial Position as of
March 31, 2000 and Statement of Operations for the three months then ended
and is qualified in its entirely by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 4,328,067
<SECURITIES> 0
<RECEIVABLES> 538,197
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 49,670,282
<DEPRECIATION> 35,033,376
<TOTAL-ASSETS> 19,503,170
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 12,881,273
<TOTAL-LIABILITY-AND-EQUITY> 19,503,170
<SALES> 0
<TOTAL-REVENUES> 3,170,334
<CGS> 0
<TOTAL-COSTS> 2,508,585
<OTHER-EXPENSES> 114,176
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 160,700
<INCOME-PRETAX> 386,873
<INCOME-TAX> 0
<INCOME-CONTINUING> 386,873
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 386,873
<EPS-BASIC> .76
<EPS-DILUTED> .76
<FN>
<F1>The registrant maintains an unclassified Statement of Financial Position.
</FN>
</TABLE>
