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 June 30, 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:
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PART I - FINANCIAL INFORMATION
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF
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(Unaudited)
June 30, December 31,
2000 1999
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Assets
Cash and cash equivalents $ 3,678,988 $ 3,679,408
Rentals receivable 149,956 326,758
Accounts receivable - affiliates 162,803 223,076
Remarketing receivable 1,710 -
Rental equipment, at cost 47,668,922 52,073,878
Less accumulated depreciation (34,430,737) (34,683,355)
Net rental equipment 13,238,185 17,390,523
Total assets $ 17,231,642 $ 21,619,765
Liabilities and partners' capital
Accrued management fees $ 92,573 $ 93,749
Accrued interest expense 9,121 11,562
Accounts payable 15,775 12,982
Deferred income 193,705 138,508
Notes payable 5,127,113 8,185,541
Total liabilities 5,438,287 8,442,342
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 57,793 51,158
Cumulative cash distributions (407,028) (386,554)
(348,235) (334,396)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 5,721,344 5,064,472
Cumulative cash distributions (39,780,793) (37,753,692)
12,141,590 13,511,819
Total partners' capital 11,793,355 13,177,423
Total liabilities and
partners' capital $ 17,231,642 $ 21,619,765
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CSA INCOME FUND IV LIMITED PARTNERSHIP
UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX
MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
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Three Months Six Months
June 30, June 30,
2000 1999 2000 1999
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Revenues:
Rental income $ 2,497,075 $ 4,010,129 $ 5,309,333 $ 8,086,376
Interest income 56,773 45,018 102,270 55,847
Gain on sale
of equipment 182,495 104,907 497,880 138,816
Net loss on
foreign currency (13,595) (9,956) (16,401) (7,849)
Total revenues 2,722,748 4,150,098 5,893,082 8,273,190
Costs and expenses:
Depreciation 2,005,260 3,005,440 4,296,170 5,984,964
Interest 137,763 287,634 298,463 596,600
Management fees 188,649 309,491 406,324 657,124
General and
administrative 114,442 59,414 228,618 128,523
Total expenses 2,446,114 3,661,979 5,229,575 7,367,211
Net income $ 276,634 $ 488,119 $ 663,507 $ 905,979
Net income allocation:
General Partner $ 2,767 $ 4,881 $ 6,635 $ 9,060
Limited Partners 273,867 483,238 656,872 896,919
$ 276,634 $ 488,119 $ 663,507 $ 905,979
Net income per
weighted average
Limited Partnership
Unit $ 0.54 $ 0.95 $ 1.30 $ 1.77
Number of weighted
average Limited
Partnership Units 506,776 506,776 506,776 506,776
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CSA INCOME FUND IV LIMITED PARTNERSHIP
UNAUDITED STATEMENTS OF CASH FLOWS FOR THE THREE
AND SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
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Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
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Cash flows from
operations:
Cash received from
rental of
equipment $ 2,690,881 $ 4,189,489 $ 5,524,931 $ 8,136,106
Cash paid for
operating and
management expenses (311,070) (411,608) (633,325) (888,794)
Interest paid (134,498) (293,113) (300,904) (607,024)
Interest received 56,773 45,018 102,270 55,847
Net cash from
operations 2,302,086 3,529,786 4,692,972 6,696,135
Cash flow from investments:
Purchase of equipment (1,142,310) (308,800) (1,142,310) (308,800)
Sale of equipment 787,226 229,171 1,494,648 779,848
Net cash from (used
for) investments (355,084) (79,629) 352,338 471,048
Cash flows from financing:
Advances to/from
affiliates 79,435 23,478 60,273 274,756
Proceeds from notes
payable - 190,153 485,037 2,599,211
Repayment of notes
payable (1,651,729) (2,732,487) (3,543,466) (5,643,617)
Payment of cash
distributions (1,023,787) (767,842) (2,047,574) (1,535,683)
Net cash used
for financing (2,596,081) (3,286,698) (5,045,730) (4,305,333)
Net change in cash and
cash equivalents (649,079) 163,459 (420) 2,861,850
Cash and cash equivalents
at beginning of period 4,328,067 3,258,584 3,679,408 560,193
Cash and cash equivalents
at end of period $3,678,988 $3,422,043 $3,678,988 $3,422,043
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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 June 30, 2000 and the results of operations and cash flows for the three
and six month periods ended June 30, 2000 and June 30, 1999.
<PAGE>
CSA INCOME FUND IV LIMITED PARTNERSHIP
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $2,497,075 and $4,010,129 and net income was $276,635 and
$488,119 for the quarters ended June 30, 2000 and 1999, respectively. For the
six months ended June 30, 2000 and 1999, rental income was $5,309,333 and
$8,086,376, and net income was $663,507 and $905,979. The decrease in gross
rental income and net income for the above periods is due primarily to
anticipated lease expirations. The net income was also impacted by increased
storage and refurbishment costs related to expired equipment currently being
sold from the Partnership's portfolio. This net income decrease was somewhat
offset by gains on sale of equipment recorded in the quarter of $182,495
compared to $104,907 in 1999, and for the six months $497,880 as compared to
$138,816 in 1999.
During the second quarter the Partnership generated cash from operations of
$2,302,086 and $787,226 from the sale of equipment for a combined cash inflow
of $3,089,312. This cash and cash on hand were used primarily to purchase
$1,142,310 of equipment, reduce debt by $1,651,729 and to distribute
$1,023,787 to partners. The Partnership generated $6,187,620 in cash
flow from operations and sales of equipment during the six months ended June
30, 2000. The Partnership utilized these funds and proceeds from note
payable to acquire additional equipment of $1,142,310, reduce notes payable
by $3,543,466 and make distributions to partners of $2,047,574.
The Partnership paid distributions of $.67 per Limited Partnership unit on the
15th of April, May, and June 2000.
To date, the Partnership has made cash distributions to the Limited Partners
ranging from 67% to 89% 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 the year 2000, which may continue into calendar year
2002. In anticipation of this wind-up process the Limited Partner's
distribution is being increased from 8% to 10% effective with the
August 15th distribution.
Management reviews the Partnership's projected performance on a periodic basis.
Based on that analysis the General Partner presently estimates that continued
cash distributions would return the entire initial investment of the Limited
Partners and a return thereon. 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
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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 second quarter of 2000.
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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
