-----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, AgyRN5B54akseFR8k+foxfIVwJnavtYIpZeXmZix4tR7nPeNwJgCfESBZ5XoCDre 8yAccUpSZ50ESXKIRHt7XA== 0000831890-97-000007.txt : 19970815 0000831890-97-000007.hdr.sgml : 19970815 ACCESSION NUMBER: 0000831890-97-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970814 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: 97663345 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 June 30, 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 JUNE 30, 1997 (UNAUDITED) AND DECEMBER 31, 1996.
(Unaudited) June 30, December 31, 1997 1996 Assets Cash and cash equivalents $ 428,569 $ 450,785 Rentals receivable 79,455 128,676 Accounts receivable-affiliates 102,350 1,140,003 Notes receivable-lessee 21,781 39,118 Remarketing receivables 171,740 42,808 Rental equipment, at cost 36,234,984 35,231,829 Less accumulated depreciation (11,284,638) (11,121,318) Net rental equipment 24,950,346 24,110,511 Total assets $ 25,754,241 $ 25,911,901 Liabilities and partners' capital Accounts payable-other $ 19,891 $ 25,064 Accrued management fees 39,378 29,853 Deferred income 111,579 206,291 Notes payable 17,216,264 16,116,034 Total liabilities 17,387,112 16,377,242 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net income 223,376 12,047 Cumulative cash distributions (376,815) (361,663) (152,439) (348,616) Limited Partners (500,000 units): Capital contributions net of offering costs 44,539,778 44,539,778 Cumulative net income 1,329,005 1,192,712 Cumulative cash distributions (37,349,215) (35,849,215) 8,519,568 9,883,275 Total Partners' capital 8,367,129 9,534,659 Total liabilities and partners' capital $ 25,754,241 $ 25,911,901
CSA INCOME FUND LIMITED PARTNERSHIP III STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 1997 AND 1996
Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 1997 1996 1997 1996 Revenues: Rental income $ 2,833,935 $ 1,681,627 $ 5,300,538 $ 3,344,418 Interest income 6,747 23,240 19,777 80,645 Gain on sale of equipment 139,880 332,190 211,329 259,089 Exchange gain (loss) on foreign currency 2,292 (1,057) 4,437 (1,736) Total revenues 2,982,854 2,036,000 5,536,081 3,682,416 Costs and expenses: Depreciation and amortization 2,265,828 1,395,275 4,245,680 2,553,098 Interest 326,663 118,552 580,890 233,731 Management fees 141,697 84,081 265,027 167,221 Storage and Refurbishment 1,253 7,000 3,253 12,000 General and administrative 49,400 39,222 93,609 79,709 Total expenses 2,784,841 1,644,130 5,188,459 3,045,759 Net income $ 198,013 $ 391,870 $ 347,622 $ 636,657 Net income allocation: General Partner $ 139,880 $ 3,919 $ 211,329 $ 6,367 Limited Partners 58,133 387,951 136,293 630,290 $ 198,013 $ 391,870 $ 347,622 $ 636,657 Net income per Limited Partnership Unit $ .11 $ .78 $ .27 $ 1.26 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 SIX MONTH PERIODS ENDED JUNE 30, 1997 AND 1996
Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 1997 1996 1997 1996 Cash flows from operations: Cash received from rental of equipment $ 2,781,302 $ 1,672,902 $ 5,237,448 $ 2,877,337 Cash paid for operating and management expenses (184,579) (156,159) (357,537) (285,355) Interest paid (326,663) (112,094) (580,890) (221,226) Interest received 6,747 20,525 19,777 90,604 Net cash from operations 2,276,807 1,425,174 4,318,798 2,461,360 Cash flow from investments: Purchase of equipment (157,247) (4,925,192) (5,628,169) (9,318,385) Sale of equipment 268,375 1,165,963 647,087 1,451,596 Net cash from (used by) investments 111,128 (3,759,229) (4,981,082) (7,866,789) Cash flows from financing: Proceeds from notes receivable 10,489 - 17,337 - Accounts payable equipment - (1,331,217) - - Advances to/from affiliates (2,888,944) (2,474,079) 1,037,653 (1,753,468) Proceeds from notes payable 3,617,836 4,749,792 5,260,094 4,749,792 Repayment of notes payable (2,164,135) (764,403) (4,159,864) (1,431,121) Payment of cash distributions (757,576) (757,576) (1,515,152) (1,515,152) Net cash from (used by) financing (2,182,330) (577,483) 640,068 50,051 Net change in cash 205,605 (2,911,538) (22,216) (5,355,378) Cash at beginning of period 222,964 3,767,145 450,785 6,210,985 Cash at end of period $ 428,569 $ 855,607 $ 428,569 $ 855,607
CSA INCOME FUND LIMITED PARTNERSHIP III NOTE TO FINANCIAL STATEMENTS The quarterly financial statements of the Partnership presented herein are without audit except for the December 31, 1996 balance sheet information. Certain information and footnote disclosure 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 June 30, 1997 and June 30, 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 $2,833,935 and $1,681,627 and net income was $198,013 and $391,870 for the quarters ended June 30, 1997 and 1996, respectively. For the six months ended June 30, 1997 and June 30,1996, gross rental income was $5,300,538 and $3,344,418 and net income was $347,622 and $636,657, respectively. The increase in gross rental income was primarily due to the $25,321,247 of new equipment leased during 1996 and 1997. The net income decrease is primarily attributable to the increase in depreciation expense associated with the new equipment leases. The Partnership generated $4,965,885 in cash flow from operations and sale of equipment during the six months ended June 30, 1997. The Partnership used these funds and proceeds from equipment financings to acquire additional equipment of $5,628,169, make payments on notes payable of $4,159,864 and make distributions to partners of $1,515,152. 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 process of the Partnership in 1997, which process is currently anticipated to be completed in 1998. In accordance with Section 8.3 (c) of the Partnership Agreement, accounting profits from the sale of equipment that result in the dissolution of the Partnership shall be allocated first to the negative balance of any Partners' Capital Account. For this reason, certain gains on the disposition of Partnership assets were allocated during the second quarter of 1997 to the General Partner to reduce its negative Capital Account. The Partnership distributed $.50 per Limited Partnership Unit on the 15th of April, May, and June. To date, the Partnership has made cash distributions to the Limited Partners ranging from 67% to 83% 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. As previously reported certain revenues generated by the Partnership from lease renewals and remarketings after the initial lease terms were lower than anticipated as a result of more rapid obsolescence in high technology equipment. Also as previously reported, The General Partner continues to estimate that 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: /s/ J. Frank Keohane President and Principal Executive Officer Date: /s/ Richard P. Timmons Controller Principal Accounting and Finance Officer Form 10-Q - Page 8 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 June 30, 1997 and Statement of Operations for the six months then ended and is qualified in its entirety by reference to such financial statements. 6-MOS DEC-31-1997 JUN-30-1997 428,569 0 375,326 0 0 0 36,234,984 11,284,638 25,754,241 0 0 0 0 0 8,367,129 25,754,241 0 5,536,081 4,513,960 5,188,459 93,609 0 580,890 347,622 0 347,622 0 0 0 347,622 .27 .27 The Registrant maintains an unclassified Statement of Financial Position.
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