10-Q 1 ivq201.txt PIF IV 10-Q 2ND QUARTER, 2001 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, 2001 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 33-32744 CSA Income Fund IV Limited Partnership (Exact name of registrant as specified in its charter) Massachusetts 04-3072449 (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 IV LIMITED PARTNERSHIP STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited) June 30, December 31, 2001 2000 Assets Cash and cash equivalents $ 439,189 $ 3,488,610 Short term investment 3,415,933 - Rentals receivable 172,809 206,146 Remarketing receivable 95,778 578,038 Accounts receivable - affiliates 19,812 20,585 Rental equipment, at cost 34,210,181 38,993,398 Less accumulated depreciation (29,926,866) (31,020,635) Net rental equipment 4,283,315 7,972,763 Total assets $ 8,426,836 $ 12,266,142 Liabilities and partners' capital Accrued management fees $ 20,482 $ 116,621 Accounts payable and Accrued expenses 29,786 32,800 Deferred income 120,705 127,957 Notes payable 488,538 2,284,571 Total liabilities 659,511 2,561,949 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net income 155,421 61,643 Cumulative cash distributions (457,362) (431,769) (300,941) (369,126) Limited Partners (506,776 units): Capital contributions, net of offering costs 46,201,039 46,201,039 Cumulative net income 6,631,313 6,102,487 Cumulative cash distributions (44,764,086) (42,230,207) 8,068,266 10,073,319 Total partners' capital 7,767,325 9,704,193 Total liabilities and partners' capital $ 8,426,836 $ 12,266,142
CSA INCOME FUND IV LIMITED PARTNERSHIP UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2001 AND 2000
Three Months Six Months June 30, June 30, 2001 2000 2001 2000 Revenues: Rental income $ 1,747,390 $ 2,497,075 $ 3,878,892 $ 5,309,333 Interest income 87,673 56,773 122,414 102,270 Gain on sale of equipment 28,829 182,495 93,778 497,880 Net gain (loss) on foreign currency 2,179 (13,595) (66,127) (16,401) Total revenues 1,866,071 2,722,748 4,028,957 5,893,082 Costs and expenses: Depreciation 1,243,324 2,005,260 2,963,127 4,296,170 Interest 17,737 137,763 59,950 298,463 Management fees 90,150 188,649 201,564 406,324 General and administrative 88,444 114,442 181,712 228,618 Total expenses 1,439,655 2,446,114 3,406,353 5,229,575 Net income $ 426,416 $ 276,634 $ 622,604 $ 663,507 Net income allocation: General Partner $ 28,829 $ 2,767 $ 93,778 $ 6,635 Limited Partners 397,587 273,867 528,826 656,872 $ 426,416 $ 276,634 $ 622,604 $ 663,507 Net income per weighted average Limited Partnership Unit $ 0.78 $ 0.54 $ 1.04 $ 1.30 Number of weighted average Limited Partnership Units 506,776 506,776 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP UNAUDITED STATEMENTS OF CASH FLOWS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2001 AND 2000
Three Months Ended Six Months Ended June 30, June 30, 2001 2000 2001 2000 Cash flows from operations: Cash received from rental of equipment $ 1,752,697 $ 2,690,881 $ 3,839,623 $ 5,524,931 Cash paid for operating and management expenses (202,425) (311,070) (482,429) (633,325) Interest paid (17,737) (134,498) (59,950) (300,904) Interest received 87,673 56,773 122,414 102,270 Net cash from operations 1,620,208 2,302,086 3,419,658 4,692,972 Cash flow from investments: Short term investment 84,067 - (3,415,933) - Purchase of equipment - (1,142,310) - (1,142,310) Sale of equipment 538,638 787,226 1,302,359 1,494,648 Net cash from (used for) investments 622,705 (355,084) (2,113,574) 352,338 Cash flows from financing: Advances to/from affiliates - 79,435 - 60,273 Proceeds from notes payable - - - 485,037 Repayment of notes payable (696,325) (1,651,729) (1,796,033) (3,543,466) Payment of cash distributions (1,279,735) (1,023,787) (2,559,472) (2,047,574) Net cash used for financing (1,976,060) (2,596,081) (4,355,505) (5,045,730) Net change in cash and cash equivalents 266,853 (649,079) (3,049,421) (420) Cash and cash equivalents at beginning of period 172,336 4,328,067 3,488,610 3,679,408 Cash and cash equivalents at end of period $ 439,189 $3,678,988 $ 439,189 $3,678,988
CSA INCOME FUND IV LIMITED PARTNERSHIP 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, 2000. In the General Partner's opinion, the unaudited financial statements reflect all adjustments which are of a normal recurring nature, necessary to present fairly the financial position of CSA Income Fund IV Limited Partnership as of June 30, 2001 and the results of operations and cash flows for the three and six month periods ended June 30, 2001 and June 30, 2000. CSA INCOME FUND IV LIMITED PARTNERSHIP GENERAL PARTNER'S DISCUSSION OF OPERATIONS Rental income was $1,747,390 and $2,497,075 and Net income was $426,416 and $276,634 for the quarters ended June 30, 2001 and 2000, respectively. For the six months ended June 30, 2001 and 2000, Rental income was $3,878,892 and $5,309,333, and Net income was $622,604 and $663,507. The decrease in overall Rental income was primarily due to anticipated lease expirations as the partnership approaches wind-up. However, The increase in Net income was primarily due to a decrease in depreciation, interest and management fee expense on equipment leases that have expired. During the three months ended June 30, 2001, the Partnership generated $2,158,846 in cash flow from operations and from the sale of equipment. The Partnership utilized these funds to reduce outstanding notes payable by $696,325 and made cash distributions to partners of $1,279,735. In our last Quarterly Report, March 31, 2001, the General Partner indicated The Partnership purchased an interest, as an interim lender, in a short term investment secured by an equipment lease obligation which yields 7.75% interest. The Partnership's portion of the short-term loan participation has been reduced from $3,800,666 to $3,415,933 as of June 30, 2001 and will continue to be reduced monthly and should be paid in full by December 31, 2001. The Partnership paid distributions of $.83 per Limited Partnership unit on the 15th of April, May, and June 2001. To date, the Partnership has made cash distributions to the Limited Partners ranging from 77% to 99% of their initial investment, depending on when the Limited Partners entered the Partnership. The objective of the Partnership is to return the Limited Partner's investment through current distributions and provide a return on this investment by continued distributions. The General Partner of CSA Income Fund IV Limited Partnership informed the Limited Partners in the Partnership's year 2000 10-K and Annual Report that the wind-up of the Partnership would begin in year 2001. Since the Partnership commenced operations on April 18, 1990, it has been operating and paying monthly distributions for over 10 years. Due to the size of the Partnership's remaining portfolio the General Partner currently anticipate the wind-up will be completed in mid-year 2002. GENERAL PARTNER'S DISCUSSION OF OPERATIONS (continued) As indicated in the First Quarter 10-Q, accounting profits from the sale of equipment that are generated as part of the Partnership's wind-up shall be allocated to each partner, first in the amount equal to the negative balance in the Capital Account until the Capital Accounts of the Partners are no longer negative. Therefore, certain gains on the disposition of partnership assets were allocated during the first two quarters of 2001 to the General Partner to reduce its Capital Account negative balance. Management reviews the Partnership's projected performance on a periodic basis. Based on that analysis the General Partner presently estimates that continued cash distributions will return the entire initial investment of the Limited Partners and a return thereon. The General Partner will continue to report on the Limited Partners' return of investment with each cash distribution. CSA INCOME FUND IV LIMITED PARTNERSHIP 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 second quarter of 2001.
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 IV Limited Partnership (Registrant) By its General Partner, CSA Lease Funds, Inc. Date: August 14, 2001 J. Frank Keohane President Principal Executive Officer Date: August 14,2001 Richard P. Timmons Corporate Controller Principal Accounting and Finance Officer Form 10-Q page 9