-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VcfmmwYQIb5u7ZLXkA+85PR9kmTmDqIgLM3nWohZMZJS+KcivvOsVQZtDnsgHOjq DCokUOue5ELzrAF246zJKA== 0000799179-95-000003.txt : 19951107 0000799179-95-000003.hdr.sgml : 19951107 ACCESSION NUMBER: 0000799179-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951106 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEASTEC INCOME FUND IV CENTRAL INDEX KEY: 0000799179 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER RENTAL & LEASING [7377] IRS NUMBER: 680100223 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-08115 FILM NUMBER: 95587637 BUSINESS ADDRESS: STREET 1: 2855 MITCHELL DR STE 215 CITY: WALNUT CREEK STATE: CA ZIP: 94598 BUSINESS PHONE: 4159383443 MAIL ADDRESS: STREET 1: 2855 MITCHELL DRIVE SUITE 215 STREET 2: 2855 MITCHELL DRIVE SUITE 215 CITY: WALNUT CREEK STATE: CA ZIP: 94598 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended September 30,1995 Commission file number 33-8115 Leastec Income Fund IV, A California Limited Partnership (Exact name of registrant as specified in its charter) California 68-0100223 (State or other jurisdiction of (IRS Employer Identification incorporation or organization) number) 2855 Mitchell Drive, Suite 215, Walnut Creek, California 94598 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (510) 938-3443 ________________________________________________________________ (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 for 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 __ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: N/A Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ___ No ___ APPLICABLE ONLY TO CORPORATE ISSUERS: N/A Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Part 1. Financial Information LEASTEC INCOME FUND IV A CALIFORNIA LIMITED PARTNERSHIP CONDENSED BALANCE SHEETS (UNAUDITED)
September 30 December 31 1995 1994 ----------- ------------ ASSETS: Cash $ 998,579 $ 928,298 Accounts receivable 17,226 45,445 Net investment in direct financing 1,453,233 3,711,391 leases Equipment on operating leases, net of accumulated depreciation of $2,622,806 in 1995 and $2,992,283 in 1994 0 0 Equipment held for sale or lease, net of accumulated depreciation of $-0-in 1995 and $215,677 in 1994 0 0 ---------- ---------- Total assets $2,469,038 $4,685,134 =========== ========== LIABILITIES AND PARTNERS' CAPITAL: Liabilities: Payables to affiliates $ 120,648 $ 144,124 Accounts payable 31,085 114,531 Deposits 160,185 360,197 Prepaid rental income 19,422 11,086 Distributions payable 657,900 652,632 Notes payable 0 305,610 ---------- ---------- Total liabilities 989,240 1,588,180 Partners' capital: Partners' capital 1,479,798 3,096,954 ---------- ---------- Total partners' capital 1,479,798 3,096,954 ---------- ---------- Total liabilities & partners' capital $2,469,038 $4,685,134 ========== ========== The accompanying notes are an integral part of these condensed financial statements.
LEASTEC INCOME FUND IV A CALIFORNIA LIMITED PARTNERSHIP CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Nine Months Quarter Ended Ended September 30 September 30 1995 1994 1995 1994 --------------------- ------------------- REVENUE: Rental income $ 267,341 $ 733,242 $ 110,844 $162,874 Direct financing lease income 336,386 523,498 33,962 139,383 Gain on sale of equipment 54,313 92,071 0 56,069 Interest income 20,332 9,118 6,807 3,229 Other income (loss) 641,486 11,727 45,457 (17,880) ---------- --------- --------- -------- Total revenues 1,319,858 1,369,656 197,070 343,675 ---------- --------- --------- -------- EXPENSES: Depreciation 0 373,063 0 (22) Management fees 230,408 195,883 37,616 73,491 General & administrative 151,168 174,706 49,740 72,029 Data processing 25,246 45,792 6,487 7,006 lnterest expense 30,192 98,616 1,080 25,006 ---------- --------- -------- -------- Total expenses 437,014 888,060 94,923 177,510 Net Income $ 882,844 $481,596 $ 102,147 $166,165 ========== ======== ========= ======== Net income per limited partnership unit $ 8.23 $ 4.49 $ .95 $ 1.55 ========== ======== ========= ======== The accompanying notes are an integral part of these condensed financial statements.
LEASTEC INCOME FUND IV A CALIFORNIA LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended September 30 1995 1994 ----------- ---------- Cash flows from operating activities: Net income $ 882,844 $ 481,596 Adjustments to reconcile net income to net cash provided by operating activities: Accumulated depreciation 0 373,063 Gain on disposition of equipment (54,313) (92,071) Other income 0 (349) Change in assets and liabilities: (Increase) decrease in accounts receivable 28,219 (66,665) Increase (decrease) in payable to affiliates (23,476) 20,969 Decrease in accounts payable (83,446) (69,449) Decrease in deposits (200,012) (17,209) Increase (decrease) in prepaid rental income 8,336 (65) Increase in distributions payable 5,268 231,573 ----------- ---------- Net cash provided by operating activities 563,420 861,393 ----------- ---------- Cash flows from investing activities: Proceeds from disposition of equipment 51,445 259,852 Proceeds from sale of direct financing leases 155,620 0 Decrease in net investment in direct financing leases 2,105,406 1,606,364 ----------- ----------- Net cash provided by investing activities 2,312,471 1,866,216 ----------- ----------- Cash flows from financing activities: Repayment of notes payable (305,610) (1,027,482) Net distributions to partners (2,500,000) (1,616,376) ----------- ----------- Net cash used in financing activities (2,805,610) (2,643,858) ----------- ----------- Net increase in cash 70,281 83,751 Cash at beginning of period 928,298 576,596 ----------- ----------- Cash at end of period $ 998,579 $ 660,347 =========== =========== The accompanying notes are an integral part of these condensed financial statements.
LEASTEC INCOME FUND IV A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 1995, SEPTEMBER 30, 1994 AND DECEMBER 31, 1994 (UNAUDITED) 1. Basis of Condensed Financial Statement Preparation -------------------------------------------------- In the opinion of the General Partner, the accompanying unaudited condensed financial statements contain all adjustments (consisting principally of normal, recurring accruals) necessary to present fairly the financial position of Leastec Income Fund IV (the Partnership) as of September 30, 1995, September 30, 1994 and December 31, 1994. As provided for in the Partnership agreement and offering document, the Partnership engaged in leasing activities which intended to be completed in approximately eleven years from its inception at which time all remaining partnership assets will have been liquidated and cash proceeds distributed to the registrant's partners. The Partnership has presented its 1995 financial statements to reflect its leasing activities on a basis consistent with prior periods. 2. Wind Down Phase --------------- The Registrant has ceased acquisition of new capital equipment and is in the process of liquidating its lease portfolio. It is intended that the Registrant will be fully liquidated at the end of its eleventh full year of operation, December 1996. LEASTEC INCOME FUND IV A CALIFORNIA LIMITED PARTNERSHIP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operation - -------------------- The Registrant has been winding down operations since 1993 by discontinuing new leasing activities and returning cash available from operations to the Registrant's Partners. Although the Registrant has until December 1997 to liquidate operations, the Registrant intends to be fully liquidated by December 1996. In order to complete the liquidation of all assets by the end of 1996, it is the General Partner's policy to allow the early termination of leases when requested as well as to seek the sale of leased assets in which the lease may extend beyond December 1996. The General Partner does not anticipate that the cash proceeds from liquidation will return 100% of the investors original capital contribution. The majority of the Registrant's operating leases have terminated. The remaining leases were fully depreciated in the first half of 1995. As operating leases terminate, the equipment is sold. The remaining balance of the lease portfolio is invested in Direct Finance leases which terminate with the lessee's contractually required purchase of equipment. The income and expenses of the Registrant are steadily declining as the lease portfolio size declines. The cash balances and related interest income fluctuate according to the cash flow from rents and equipment and finance lease sales during each quarter. Cash is distributed to the Partners according to their respective tax basis capital accounts. The Registrant reported a net income of $882,844 or $8.23 per Limited Partnership Unit for the nine months ended September 30, 1995, as compared to net income of $481,596 or $4.49 per Limited Partnership Unit for the nine months ended September 30, 1994. Total revenues for the nine months ended September 30, 1995, were $1,319,858 compared $1,369,656 for the same period in the prior year. This slight decrease is primarily due to the significant increase in other income from $11,727 for the nine months ended September 30, 1994, to $641,486 for the same period in 1995. The majority of the increase, or $591,829, for the nine months ended September 30, 1995, was caused by early termination fees on a direct finance lease with Paradigm Technology. Revenue derived from the Fund's equipment management activities comprised 99% of the total income for the period, with the remaining 1% being interest income. Direct financing lease income decreased from September 30, 1994, to September 30, 1995, ($523,498 to $336,386 respectively). The net investment in direct financing leases decreased from $4,391,489 at September 30, 1994, to $1,453,233 at September 30, 1995. Interest income increased because the Registrant held slightly higher cash balances due to equipment and lease sales during the first nine months of 1995 as compared to the same period in the prior year. All available cash is being paid out in distributions to the Fund's partners on a quarterly basis. Total expenses for the nine months ended September 30, 1995, were $437,014 compared to $888,060 for the same period in the prior year. Depreciation, management fees, interest, and general and administrative costs comprised 94% of the total expenses. Interest expense decreased from September 30, 1994 to September 30, 1995, ($98,616 to $30,192 respectively). The note payable balance was $548,591 as of September 30, 1994, compared to a note payable balance of $0 as of September 30, 1995. The equipment on operating leases was fully depreciated at the end of 1994 giving a balance net of accumulated depreciation of $-0- for both December 31, 1994, and September 30, 1995. The gain on sale of equipment for the nine months ended September 30, 1995, was $54,313 as compared to $92,071 for the same period in 1994. As the Registrant draws nearer to complete liquidation more leases and underlying equipment will be sold causing fluctuations between periods in the gain on sale of equipment. General and administrative costs remained relatively unchanged decreasing slightly from $174,706 for the first nine months of 1994 to $151,168 for the same period in 1995. Liquidity and Capital Resources - ------------------------------- Cash provided by operating activities for the nine months ended September 30, 1995, was $563,420 compared to $861,393 for the same period in the prior year. Cash provided by investing activities increased from $1,866,216 for the nine months ended September 30, 1994, to $2,312,471 for the same period in 1995, reflecting primarily the inter-period fluctuations in equipment sales and the aging of rental receipts from the direct finance lease portfolio. As rental payments on finance leases are received, the cash is broken up into income and return of principal. As a finance lease ages the income portion of the rental receipts decrease and the return of principal portion increases. Sales proceeds of equipment for the nine months ended September 30, 1994, totaled approximately $259,852 resulting in a $92,071 gain after depreciation expense was taken compared to $51,445 resulting in a gain of $54,313 for the same period this year. Cash provided by investing activities was used to repay $305,610 of debt during the nine months ended September 30,1995 as compared to $1,027,482 for the same period in the prior year. As of September 30, 1995, the Fund's partners were allocated cash distributions of $657,900 payable on October 13, 1995. The size of investor distributions depend on the timing of equipment sales and collections of rents. As a result of the decreasing portfolio of leases, this amount can be expected to gradually decrease during 1995 and 1996 and to be variable in amount from quarter to quarter depending on the timing of equipment sales. The cash balance increased from $576,596 at December 31, 1993, to $660,347 at September 30, 1994, to $928,298 at December 31, 1994 to $998,579 at September 30, 1995. The cash position as of September 30, 1995, was $998,579. The General Partner anticipates that funds from operations will be adequate to cover all operating expenses and future needs of the Partnership during 1995. PART II. OTHER INFORMATION 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 None. (b) Reports on Form 8-K None. 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. LEASTEC INCOME FUND IV (Registrant) LEASTEC CORPORATION (General Partner) Date: November 1, 1995 By: Ernest V. Lavagetto Ernest V. Lavagetto, President EX-27 2 ARTICLE 5 FINANCIAL DATA SCHEDULE FOR 3RD QTR 10-Q
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 998,579 0 1,470,459 0 0 2,469,038 0 0 2,469,038 989,240 0 0 0 0 1,479,798 2,469,038 1,319,858 1,319,858 0 0 406,822 0 30,192 882,844 0 0 0 0 0 882,844 8.23 8.23
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