-----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, IHXLGXxOv2EilJ6HrgqRNhrGJ1MrArN4hE58vQ3GQ4lETH1NJZBr/nQYNsrM3UYA 0RKacrMoLC+dN9f2Y0tsQA== 0000831890-98-000012.txt : 19981123 0000831890-98-000012.hdr.sgml : 19981123 ACCESSION NUMBER: 0000831890-98-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981116 DATE AS OF CHANGE: 19981120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CSA INCOME FUND LIMITED PARTNERSHIP III CENTRAL INDEX KEY: 0000831890 STANDARD INDUSTRIAL CLASSIFICATION: 7377 IRS NUMBER: 043002909 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 033-21267 FILM NUMBER: 98753500 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, 1998 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 STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited) September 30, December 31, 1998 1997 Assets Cash and cash equivalents $ 292,051 $ 200,328 Rentals receivable 2,565 45,665 Accounts receivable- affiliates 24,298 61,368 Notes receivable-lessee 0 14,641 Remarketing receivables 16,168 56,010 Rental equipment, at cost 20,020,546 32,491,943 Less accumulated depreciation (13,161,046) (13,732,945) Net rental equipment 6,859,500 18,758,998 Total assets $ 7,194,582 $19,137,010 Liabilities and partners' capital Accounts payable $ 82,731 $ 78,738 Accrued management fees 18,532 35,639 Deferred income 10,853 60,558 Notes payable 3,072,345 12,629,981 Total liabilities 3,184,461 12,804,916 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net income 413,692 267,020 Cumulative cash distributions (414,692) (391,966) 0 (123,946) Limited Partners (500,000 units): Capital contributions net of offering costs 44,539,778 44,539,778 Cumulative net income 569,558 765,477 Cumulative cash distributions (41,099,215) (38,849,215) 4,010,121 6,456,040 Total Partners' capital 4,010,121 6,332,094 Total liabilities and partners' capital $ 7,194,582 $19,137,010
CSA INCOME FUND LIMITED PARTNERSHIP III STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 Three Months Ended Nine Months Ended September, September, September, September, 30, 1998 30, 1997 30, 1998 30, 1997 Revenues: Rental income $1,434,086 $2,565,381 $ 5,807,860 $7,865,919 Interest income 1,013 1,947 2,543 21,724 Gain on sale of equipment 233,459 44,584 378,106 255,913 Exchange gain on foreign currency 168 2,437 367 6,874 Total revenues 1,668,726 2,614,349 6,188,876 8,150,430 Costs and expenses: Depreciation and amortization 1,419,000 2,243,729 5,351,574 6,489,409 Interest 83,213 323,377 484,995 904,267 Management fees 71,704 128,269 290,393 393,296 Storage and Refurbishment 1,000 - 1,000 3,253 General and administrative 28,376 43,670 110,160 137,279 Total expenses 1,603,293 2,739,045 6,238,122 7,927,504 Net income (loss) $ 65,433 $ (124,696) $ (49,246) $ 222,926 Net income (loss) allocation: General Partner $ 7,574 $ 44,584 $ 146,672 $ 255,913 Limited Partners 57,859 (169,280) (196,018) (32,987) $ 65,433 $ (124,696) $ (49,246) $ 222,926 Net income (loss) per Limited Partnership Unit $ .12 $ (.34) $ (.39) $ ( .07) 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, 1998 AND 1997 Three Months Ended Nine Months Ended September, September, September, September, 30, 1998 30, 1997 30, 1998 30, 1997 Cash flows from operations: Cash received from rental of equipment $ 1,368,677 $ 2,531,115 $ 5,790,688 $ 7,768,563 Cash paid for operating and management expenses (68,747) (146,939) (414,667) (504,476) Interest paid (83,213) (323,377) (484,996) (904,267) Interest received 1,012 1,947 2,543 21,724 Net cash from operations 1,217,729 2,062,746 4,893,568 6,381,544 Cash flow from investments: Purchase of equipment - (33,522) - (5,661,691) Sale of equipment 2,575,491 229,938 6,965,873 877,025 Net cash from (used by) investments 2,575,491 196,416 6,965,873 (4,784,666) Cash flows from financing: Proceeds from notes receivable - 3,555 10,933 20,892 Advances to/from affiliates 46,165 63,613 37,070 1,101,266 Proceeds from notes payable 14,641 388,795 14,641 5,648,889 Repayment of notes payable (2,946,990) (2,164,469) (9,557,636) (6,324,333) Payment of cash distributions (757,574) (757,575) (2,272,726) (2,272,727) Net cash used by financing (3,643,758) (2,466,081) (11,767,718) (1,826,013) Net change in cash 149,462 (206,919) 91,723 (229,135) Cash and cash equivalents at beginning of period 142,589 428,569 200,328 450,785 Cash and cash equivalents at end of period $ 292,051 $ 221,650 $ 292,051 $ 221,650
CSA INCOME FUND LIMITED PARTNERSHIP III NOTE TO FINANCIAL STATEMENTS The quarterly financial statements of the Partnership presented herein are without audit except for balance sheet information as of December 31, 1997. 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, 1997. 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, 1998 and September 30, 1997 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 Total revenue was $1,668,726 and $2,614,349 for the quarters ended September 30, 1998 and 1997,respectively. Net income for the quarter ended September 30, 1998 was $65,433 as compared to a net loss of $124,696 in the quarter ended September 30, 1997. For the nine months ended September 30, 1998 and September 30,1997, total revenue was $6,188,876 and $8,150,430, respectively. A net loss of $49,246 was recorded for the first nine months ended September 30, 1998 as compared to income of $222,926 in the nine months ended September 30, 1997. The net income decrease is primarily due to an increase in depreciation expense as a percentage of rental revenue as the portfolio winds-down. The Partnership generated cash flow of $11,859,441 from operations and sale of equipment during the nine months ended September 30, 1998. The Partnership used these funds and cash on hand to reduce notes payable by $9,557,636 and make distributions to partners of $2,272,726. Also as part of the Partnership wind-up process, the notes payable were further reduced, by $1,643,355 as a result of the Partnership selling, subject to existing notes payables, equipment under lease having original equipment cost of $3,303,188. The General Partner of CSA Income Fund Limited Partnership III informed the Limited Partners in the Partnership's 1997 10-K, Annual Report and thereafter that in it's opinion, it would be in the best interest of the Limited Partners and the Partnership to wind-up the Partnership in 1998. As of September 30, 1998, the General Partner has sold approximately $12,450,000 original cost of equipment under lease. The Partnership has approximately $6,860,000 original cost of leased equipment to sell to complete the wind-up. The General Partner will endeavor to complete the wind-up of the Partnership by December 31, 1998 if prevailing market opportunities allow the sale of the remaining leases at or above fair market value to maximize the return to all Limited Partners. If this process is going to be delayed into 1999, you will be informed in December. As previously reported, in connection with the wind up of the Partnership, certain accounting gains on the disposition of partnership assets were allocated during the third quarter of 1998 to the General Partner to reduce its Capital Account negative balance. 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 75% to 91% of their initial investment. The General Partner continues to estimate as previously reported, that the continued cash distributions will not fully return the entire initial investment of the Limited Partners and/or a return thereon. We will continue to report on the Limited Partners' return of investment with each remaining 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 the third quarter of 1998.
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: 11/13/98 /s/ J. Frank Keohane President Principal Executive Officer Date: 11/13/98 /s/ Richard P.Timmons Corporate 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 September 30, 1998 and Statement of Operations for the nine months then ended and is qualified in its entirely by reference to such financial statements. 9-MOS DEC-31-1998 SEP-30-1998 292,051 0 43,031 0 0 0 20,020,546 13,161,046 7,194,582 0 0 0 0 0 4,010,121 7,194,582 0 6,188,876 0 5,641,967 111,160 0 484,995 (49,246) 0 (49,246) 0 0 0 (49,246) (0.39) (0.39) The Registrant maintains an unclassified Statement of Financial Position.
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