-----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, R6TE4KHkkzIkKmr3pJzoq98ubIozz6cHqlj9DUwtcTg6sM86aQmz+ECMJ8esJ6C/ fOkuEKs0jSEvNfTImZGCEw== 0000809224-96-000007.txt : 19961120 0000809224-96-000007.hdr.sgml : 19961120 ACCESSION NUMBER: 0000809224-96-000007 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 III CENTRAL INDEX KEY: 0000831890 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER RENTAL & LEASING [7377] IRS NUMBER: 043002909 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-21267 FILM NUMBER: 96666932 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 33-21267 CSA Income Fund Limited Partnership III (Exact name of registrant as specified in its charter) Massachusetts 04-3002909 (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 III CSA INCOME FUND LIMITED PARTNERSHIP III 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 $ 2,816,372 $ 6,210,985 Rentals receivable 244,232 5,928 Accounts receivable-affiliates 632,921 200,169 Interest receivable 9,840 15,626 Notes receivable-lessee 85,000 85,000 Remarketing receivables 53,883 234,381 Rental equipment, at cost 28,875,710 26,648,802 Less accumulated depreciation (12,603,462) (15,490,492) Net rental equipment 16,272,248 11,158,310 Total assets $ 20,114,496 $ 17,910,399 Liabilities and partners' capital Liabilities: Accounts payable - affiliates $ - $ 37,928 Accounts payable - other 27,876 36,803 Accrued management fees 39,032 49,632 Deferred income 222,876 450,786 Notes payable 9,500,752 5,609,093 Limited recourse notes payable 26,656 38,009 Total liabilities 9,817,192 6,222,251 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net gain 12,098 3,279 Cumulative cash distributions (354,087) (331,360) (340,989) (327,081) Limited Partners (500,000 units): Capital contributions net of offering costs 44,539,778 44,539,778 Cumulative net gain 1,197,730 324,666 Cumulative cash distributions (35,099,215) (32,849,215) 10,638,293 12,015,229 Partners' capital 10,297,304 11,688,148 Total liabilities and partners' capital $ 20,114,496 $ 17,910,399
CSA INCOME FUND LIMITED PARTNERSHIP III 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 $ 1,988,222 $ 2,084,979 $ 5,332,640 $ 7,380,181 Interest income 25,276 62,151 105,921 157,853 Gain on sale of equipment 838 380,621 259,927 675,028 Gain (loss) on foreign currency (3,706) (1,534) (5,442) 8,316 Total revenues 2,010,630 2,526,217 5,693,046 8,221,378 Costs and expenses: Depreciation 1,441,138 1,649,794 3,994,236 5,713,194 Interest 179,620 106,244 413,351 313,290 Management fees 99,411 104,249 266,632 369,009 Storage and Refurbishment 7,000 17,000 19,000 27,000 General and administrative 38,235 44,038 117,944 152,548 Total expenses 1,765,404 1,921,325 4,811,163 6,575,041 Net income $ 245,226 $ 604,892 $ 881,883 $ 1,646,337 Net income allocation: General Partner $ 2,452 $ 6,049 $ 8,819 $ 16,463 Limited Partners 242,774 598,843 873,064 1,629,874 $ 245,226 $ 604,892 $ 881,883 $ 1,646,337 Net income per Limited Partnership Unit $ .49 $ 1.20 $ 1.75 $ 3.26 Number of Limited Partnership Units 500,000 500,000 500,000 500,000
CSA INCOME FUND LIMITED PARTNERSHIP III 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 $ 1,997,001 $ 3,958,859 $ 4,877,596 $ 7,732,228 Cash paid for operating and management expenses (137,748) (209,500) (423,103) (580,637) Interest paid (179,620) (227,038) (413,351) (303,505) Interest received 21,103 62,151 111,707 157,853 Net cash from operations 1,700,736 3,584,472 4,152,849 7,005,939 Cash flows from investments: Value added tax reimbursed - - - 239,724 Purchase of equipment (856,865) (1,506,888) (10,175,250) (1,862,468) Sale of equipment 30,046 885,153 1,490,889 2,023,162 Net cash from (used by) investments (826,819) (621,735) (8,684,361) 400,418 Cash flows from financing: Accounts payable - equipment purchases - - - (98,995) Increase in accounts receivable-affiliate 1,282,788 (36,918) (470,680) (320,321) Proceeds from notes payable 1,666,225 1,554,325 6,416,017 1,812,862 Repayment of notes payable (1,104,590) (3,702,812) (2,535,711) (5,365,456) Payment of cash distributions (757,575) (757,575) (2,272,727) (2,272,727) Net cash used by financing 1,086,848 (2,942,980) 1,136,899 (6,244,637) Net change in cash and and cash equivalents 1,960,765 19,757 (3,394,613) 1,161,720 Cash and cash equivalents at beginning of period 855,607 4,212,409 6,210,985 3,070,446 Cash and cash equivalents at end of period $2,816,372 $4,232,166 $2,816,372 $4,232,166
CSA INCOME FUND LIMITED PARTNERSHIP III 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 III 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 III GENERAL PARTNER'S DISCUSSION OF OPERATIONS ______________________________________________________________________ Gross rental income was $1,988,222 and $2,084,979 and net income was $245,226 and $604,892 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 $5,332,640 and $7,380,181 and net income was $881,883 and $1,646,337, respectively. The decrease in gross rental income in 1996 is attributable to the reduced rental rates for re-leased equipment and to the sale of equipment from the Partnership's portfolio. The decrease in net income in 1996 is the result of the decrease in gross rental income as well as a lower level of gains on sales of equipment. Additionally, the Partnership incurred a higher level of interest expense as more leases were financed during the second and third quarters of 1996. The Partnership generated $5,643,738 from operations and the sale of equipment during the nine months ended September 30, 1996. The Partnership used these funds, proceeds from equipment financings and cash on hand to acquire additional equipment of $10,175,250, make scheduled debt payments of $2,535,711 and pay cash distributions to the partners of $2,272,727. The Partnership distributed $.50 per Limited Partnership Unit on the 15th of July, August and September. To date, the Partnership has made cash distributions to the Limited Partners ranging from 62% to 78% 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 have been lower than anticipated as a result of rapid technological obsolescence in high technology equipment. While the General Partner continues to pursue additional lease opportunities to increase the Partnership's distributions, based on an analysis of the remaining assets in the Partnership's portfolio, the General Partner presently estimates that the continued cash distributions may not fully return the entire initial investment of the Limited Partners and/or a return thereon. The General Partner will continue to report on the Limited Partners' return of investment with each cash distribution. CSA INCOME FUND LIMITED PARTNERSHIP III 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 III (Registrant) By its General Partner, CSA Equity 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 III's Statement of Financial Position as of September 30, 1996 and Statement of Operations for the nine months then ended and is qualified in its entirety by reference to such financial statements. 9-MOS DEC-31-1996 SEP-30-1996 2816372 0 1025876 0 0 0 28875710 12603462 20114496 0 0 0 0 0 10297304 20114496 0 5693046 4279868 4811163 117944 0 413351 881883 0 881883 0 0 0 881883 1.75 1.75 The Registrant maintains an unclassified Statement of Financial Position.
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