-----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, EKMWAWc1D5uCCKVhNQxDCZ7YvAof3Kxnh9SeZpmyho9CNE7FNz7AkkxpwarLyiZG 84nVi+7GRUSpUPapckd27g== 0000809224-96-000010.txt : 19961120 0000809224-96-000010.hdr.sgml : 19961120 ACCESSION NUMBER: 0000809224-96-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961115 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CSA INCOME FUND LIMITED PARTNERSHIP II CENTRAL INDEX KEY: 0000809224 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER RENTAL & LEASING [7377] IRS NUMBER: 042932178 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17091 FILM NUMBER: 96667004 BUSINESS ADDRESS: STREET 1: 22 BATTERYMARCH ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6173571700 MAIL ADDRESS: STREET 1: 22 BATTERY MARCH STREET CITY: BOSTON STATE: MA ZIP: 02109 10-Q 1 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, 1996 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 0-17091 CSA Income Fund Limited Partnership II (Exact name of registrant as specified in its charter) Massachusetts 04-2932178 (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: PART I - FINANCIAL INFORMATION CSA INCOME FUND LIMITED PARTNERSHIP II CSA INCOME FUND LIMITED PARTNERSHIP II STATEMENTS OF FINANCIAL POSITION AS OF SEPTEMBER 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995 ______________________________________________________________________
(Unaudited) September 30, December 31, 1996 1995 Assets Cash and cash equivalents $ 269,583 $ 1,021,366 Rentals receivable 65,565 21,109 Accounts receivable affiliates 77,515 133,277 Sales proceeds receivable 525 46,367 Rental equipment, at cost 5,619,837 6,996,398 Less accumulated depreciation (3,355,475) (5,217,222) Net rental equipment 2,264,362 1,779,176 Total assets $ 2,677,550 $ 3,001,295 Liabilities and partners' capital Liabilities: Accrued management and reimbursable fees $ 8,885 $ 17,710 Accounts payable 10,834 14,495 Deferred income 1,556 4,836 Notes payable 1,028,650 803,137 Limited recourse notes payable 76,107 71,382 Total liabilities 1,126,032 911,560 Partners' capital: General Partner (deficit): Capital contributions 1,000 1,000 Cumulative net income (loss) 4,462 (613) Cumulative cash distributions (164,568) (154,111) (159,106) (153,724) Limited Partners (78,785 units): Capital contributions, net of offering costs 17,563,265 17,563,265 Cumulative net income (loss) 441,785 (60,615) Cumulative cash distributions (16,294,426) (15,259,191) 1,710,624 2,243,459 Total Partners' capital 1,551,520 2,089,735 Total liabilities and partners' capital $ 2,677,550 $ 3,001,295
CSA INCOME FUND LIMITED PARTNERSHIP II STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995 ______________________________________________________________________
THREE MONTHS NINE MONTHS 1996 1995 1996 1995 Revenues: Rental income $ 516,935 $ 514,040 $ 1,404,543 $ 1,645,977 Interest income 1,364 16,962 14,479 46,459 Gain on sale of equipment 12,189 84,155 47,242 125,675 Total revenues 530,488 615,157 1,466,264 1,818,111 Costs and expenses: Depreciation 296,845 238,069 761,821 911,649 Interest 24,449 16,485 68,989 53,453 Management fees 25,847 25,703 70,227 82,299 General and administrative 19,859 25,309 57,752 67,509 Total expenses 367,000 305,566 958,789 1,114,910 Net income $ 163,488 $ 309,591 $ 507,475 $ 703,201 Net income allocation: General Partner $ 1,635 $ 3,096 $ 5,075 $ 7,032 Limited Partners 161,853 306,495 502,400 696,169 $ 163,488 $ 309,591 $ 507,475 $ 703,201 Net income per Limited Partnership Unit $ 2.05 $ 3.89 $ 6.38 $ 8.84 Number of Limited Partnership Units 78,785 78,785 78,785 78,785
CSA INCOME FUND LIMITED PARTNERSHIP II STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995 ______________________________________________________________________
THREE MONTHS NINE MONTHS 1996 1995 1996 1995 Cash flows from operations: Cash received from rental of equipment $ 508,661 $ 475,428 $ 1,432,037 $ 1,640,077 Cash paid for operating and management expenses (58,523) (41,696) (140,465) (234,774) Interest paid (24,449) (8,817) (68,989) (30,481) Interest received 1,364 16,962 14,479 46,459 Net cash from operations 427,053 441,877 1,237,062 1,421,281 Cash flow from investments: 99,521 67,050 236,251 906,140 Purchase of equipment (262,985) (179,191) (1,409,642) (179,191) Net cash from (used by) investments (163,464) (112,141) (1,173,391) 726,949 Cash flows from financing: Proceeds from notes payable 429,071 89,426 747,127 89,426 Repayment of notes payable (233,243) (102,957) (516,889) (627,980) Payment of cash distributions (348,566) (348,564) (1,045,692) (1,045,692) Net cash from (used by) financing (152,738) (362,095) (815,454) (1,584,246) Net change in cash and cash equivalents 110,851 (32,359) (751,783) 563,984 Cash and cash equivalents at beginning of period 158,732 1,386,588 1,021,366 790,245 Cash and cash equivalents at end of period $ 269,583 $ 1,354,229 $ 269,583 $1,354,229
CSA INCOME FUND LIMITED PARTNERSHIP II 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, 1995. In the General Partner's opinion, the unaudited financial statements reflect all adjustments necessary to present fairly the financial position of CSA Income Fund Limited Partnership II as of September 30, 1996 and December 31, 1995 and the results of operations and cash flows for the periods presented therein. CSA INCOME FUND LIMITED PARTNERSHIP II GENERAL PARTNER'S DISCUSSION OF OPERATIONS ______________________________________________________________________ Gross rental income was $516,935 and $514,040 and net income was $163,488 and $309,591 for the quarters ended September 30, 1996 and 1995, respectively. For the nine months ended September 30, 1996 and September 30, 1995, gross rental income was $1,404,543 and $1,645,977 and net income was $507,475 and $703,201, respectively. For the nine month period, the decrease in gross rental income is attributable to the expected occurrence of reduced rental rates for re-leased equipment and to the ongoing sale of equipment from the Partnership's portfolio. The lower rental revenue and the lower level of gains on sale of equipment in 1996 was offset by correspondingly lower levels of depreciation, resulting in a slight decrease in net income from 1995. The Partnership generated $1,473,313 in cash flow from operations and the sale of equipment during the nine months ended September 30, 1996. This cash was used to make distributions to the partners, purchase equipment and pay down debt. Cash distributions of $1,045,692 were paid to partners, the Partnership acquired $1,409,642 of additional equipment and notes payable was reduced by $516,889. The intended life of the Partnership contained in the original prospectus was seven to ten years. The Partnership has been in operation in excess of nine years and the General Partner feels that it is in the best interest of the Partnership and Limited Partners to begin the wind-up of the Partnership during the fourth quarter of 1996. The General Partner will be analyzing all remaining leases so that they can be remarketed or sold at the maximum potential return. This process will extend into 1997, when the final distribution is projected to be paid. The Partnership paid a quarterly distributions to the Limited Partners in the amount of $4.38 per unit on August 15, 1996. To date, the Partnership has made cash distributions to the Limited Partners ranging from 80% to 89% of their initial investment, depending on when the Limited Partner entered the Partnership. The objective of the Partnership is to return the Limited Partners' investment through current cash distributions and provide a return on this investment by continued distributions as long as the equipment continues to be leased. However, revenues generated by the Partnership from lease renewals and remarketings after the initial lease terms were lower than anticipated as a result of rapid technological obsolescence in high technology equipment. Consequently, the General Partner previously estimated that the continued cash distributions may not fully return the entire initial investment to all Limited Partners and/or a return thereon. Currently, it is expected, but subject to the winding-up process, that total projected returns will approximate 95% to 100% of the Limited Partners' initial investment. CSA INCOME FUND LIMITED PARTNERSHIP II PART II ______________________________________________________________________ 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 this quarter. 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 Limited Partnership II (Registrant) By its General Partner, CSA Income Funds, Inc. Date: November 14, 1996 /s/ J. Frank Keohane President and Principal Executive Officer Date: November 14, 1996 /s/ Richard F. Sullivan Vice President Principal Accounting and Finance Officer EX-27 2
5 This schedule contains summary financial information extracted from CSA Income Fund Limited Partnership II's Statement of Financial Position as of September 30, 1996 and Statement of Operations for the six months then ended and is qualified in its entirety by reference to such financial statements. 9-MOS DEC-31-1996 SEP-30-1996 269583 0 143605 0 0 0 5619837 3355475 2677550 0 0 0 0 0 1551520 2677550 0 1466264 832048 958789 57752 0 68989 507475 0 507475 0 0 0 507475 6.38 6.38 The Registrant maintains an unclassifed Statement of Financial Position.
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