-----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, KK9G9PFc9BhEKXNXasZ4yiXj68Bs6biZpwjiVeQlnFkSXFG0SGvn8iH9Rfbm97bp sTmQvkh0FTKuFSKxaQtszg== 0000831890-97-000003.txt : 19970520 0000831890-97-000003.hdr.sgml : 19970520 ACCESSION NUMBER: 0000831890-97-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 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: 97606958 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 March 31, 1997 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 MARCH 31, 1997 AND DECEMBER 31, 1996
(Unaudited) March 31, 1997 December 31, 1996 Assets Cash and cash equivalents $ 222,964 $ 450,785 Rentals receivable 67,899 128,676 Accounts receivable-affiliates 1,140,003 Notes receivable-lessee 32,269 39,118 Remarketing receivables 38,444 42,808 Rental equipment, at cost 38,833,455 35,231,829 Less accumulated depreciation (11,510,968) (11,121,318) Net rental equipment 27,322,487 24,110,511 Total assets $ 27,684,063 $ 25,911,901 Liabilities and partners' capital Accounts payable - affiliates $ 2,786,594 $ Accounts payable 18,316 25,064 Accrued management fees 33,182 29,853 Deferred income 156,716 206,291 Notes Payable 15,762,563 16,116,034 Total liabilities 18,757,371 16,377,242 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net income 83,496 12,047 Cumulative cash distributions (369,239) (361,663) (284,743) (348,616) Limited Partners (500,000 units): Capital contributions net of offering costs 44,539,778 44,539,778 Cumulative net income 1,270,872 1,192,712 Cumulative cash distributions(36,599,215) (35,849,215) 9,211,435 9,883,275 Partners' capital 8,926,692 9,534,659 Total liabilities and partners' capital $ 27,684,063 $ 25,911,901
CSA INCOME FUND LIMITED PARTNERSHIP III STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
1997 1996 Revenues: Rental income $ 2,466,603 $ 1,662,791 Interest income 13,030 57,405 Gain (loss) on sale of equipment 71,449 (73,101) Gain (loss) on foreign currency 2,145 (679) Total revenues 2,553,227 1,646,416 Costs and expenses: Depreciation/amortization 1,979,852 1,157,823 Interest expense 254,227 115,179 Management fees 123,330 83,140 Storage & Refurbishment 2,000 5,000 General and administrative 44,209 40,487 Total expenses 2,403,618 1,401,629 Net income $ 149,609 $ 244,787 Net income allocation: General Partner $ 71,449 $ 2,448 Limited Partners 78,160 242,339 $ 149,609 $ 244,787 Net income per Limited Partnership Unit $ .16 $ .48 Number of Limited Partnership Units 500,000 500,000
CSA INCOME FUND LIMITED PARTNERSHIP III STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 [CAPTION] 1997 1996 Cash flows from operations: Cash received from rental of equipment $ 2,456,146 $ 1,925,046 Cash paid for operating and management expenses (172,958) (129,196) Interest paid (254,227) (109,132) Interest received 13,030 70,079 Net cash from operations 2,041,991 1,756,797 Cash flow from investments: Purchase of equipment (5,470,922) (4,393,193) Sale of equipment 378,712 285,633 Net cash from (used by) investments (5,092,210) (4,107,560) Cash flows from financing: Accounts payable - equipment purchases 1,331,217 Advances to/from affiliates 3,926,597 Payment from notes receivable 6,848 Proceeds from notes payable 1,642,258 Repayment of notes payable (1,995,729) (666,718) Payment of cash distributions (757,576) (757,576) Net cash from (used by) financing 2,822,398 (93,077) Net change in cash and cash equivalents (227,821) (2,443,840) Cash and cash equivalents at beginning of period 450,785 6,210,985 Cash and cash equivalents at end of period $ 222,964 $ 3,767,145
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, 1996. 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 March 31, 1997 and December 31, 1996 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 $2,466,603 and $1,662,791 and net income was $149,609 and $244,787 for the quarters ended March 31, 1996 and 1995, respectively. The increase in gross rental income was primarily due to the $19,693,078 of new equipment leased during 1996. The net income decrease is primarily attributable to the increase in depreciation expense associated with the new leases added during 1996. The Partnership generated $2,420,703 in cash flow from operations and from the sale of equipment during the three months ended March 31, 1997. The Partnership used these funds and cash on hand to acquire additional equipment of $5,470,922, pay down notes payable by $1,995,729 and pay cash distributions to the Limited Partners of $750,000. The intended life of the Partnership contained in the original prospectus was five to seven years. The Partnership has been in operation in excess of seven years. The General Partner of CSA Income Fund Limited Partnership III informed the Limited Partners in the Partnership's 1996 10-K and Annual Report that the Partnership would begin the wind up of the Partnership in 1997, which is currently anticipated to be completed in 1998. In accordance with the Partnership Agreement, pursuant to section 8.3 (c), accounting profits from the sale of equipment that results in the dissolution of the Partnership, shall be allocated to each partner first in the amount equal to the negative balance in the Capital Account of such partner. In connection with the wind up of the Partnership, certain gains on the disposition of partnership assets were allocated during the first quarter of 1997 to the General Partner to reduce its Capital Account negative balance. The Partnership distributed $ .50 per limited partnership unit on the 15th of January, February and March 1997. To date, the Partnership has made cash distributions to the Limited Partners ranging from 66% to 82% 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, revenue generated by the Partnership from lease renewals and remarketings after the initial lease terms have been lower than anticipated as a result of more rapid 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 Partnerships' 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 - There were no reports filed during the first quarter of 1997. 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: 05/15/97 /s/ J. Frank Keohane J. Frank Keohane, President Principal Executive Officer Date: 05/15/97 /s/ Richard P. Timmons Richard P. Timmons Controller 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 March 31, 1997 and Statement of Operations for the three months then ended and is qualified in its entirety by reference to such financial statements. 3-MOS DEC-31-1997 MAR-31-1997 222,964 0 138,612 0 0 0 38,833,455 11,510,968 27,684,063 0 0 0 0 0 8,926,692 27,684,063 0 2,553,227 0 2,103,182 46,209 0 254,227 149,609 0 149,609 0 0 0 149,609 .16 .16 The Registrant maintains an unclassified Statement of Financial Position.
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