-----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, PYvpeSoYbLEefqP+EN9u+jqEFIErqpIoT5WHHsY6HlVNpOIqvAGTbLCoLJTGLhhH n2zROn+v5/QfgL3m7AX67w== 0000879812-96-000005.txt : 19961118 0000879812-96-000005.hdr.sgml : 19961118 ACCESSION NUMBER: 0000879812-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATEL CASH DISTRIBUTION FUND IV L P CENTRAL INDEX KEY: 0000879812 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 943145429 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-21552 FILM NUMBER: 96662844 BUSINESS ADDRESS: STREET 1: 235 PINE ST STREET 2: 6TH FL CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 4159898800 MAIL ADDRESS: STREET 1: 235 PINE ST STREET 2: 6TH FL CITY: SAN FRANCISCO STATE: CA ZIP: 94104 10-Q 1 REPORT FOR NINE MONTHS ENDED 9/30/96 Form 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 |X| Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended September 30, 1996 |_| 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 000-21552 ATEL Cash Distribution Fund IV, L.P. (Exact name of registrant as specified in its charter) California 94-3145429 (State or other jurisdiction of (I. R. S. Employer incorporation or organization) Identification No.) 235 Pine Street, 6th Floor, San Francisco, California 94104 (Address of principal executive offices) Registrant's telephone number, including area code: (415)989-8800 Indicate by a 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 for 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 |_| DOCUMENTS INCORPORATED BY REFERENCE None Page 1 of 16 Part I FINANCIAL INFORMATION Item 1. Financial Statements. Page 2 ATEL CASH DISTRIBUTION FUND IV, L.P. BALANCE SHEETS SEPTEMBER 30, 1996 AND DECEMBER 31, 1995 (Unaudited) ASSETS 1996 1995 ---- ---- Cash and cash equivalents $563,565 $1,355,258 Accounts receivable 610,284 682,207 Notes receivable 33,755 135,022 Investment in leases 55,850,615 63,967,204 ---------------- ----------------- $57,058,219 $66,139,691 ================ ================= LIABILITIES AND PARTNERS' CAPITAL Non-recourse debt $22,216,345 $25,298,767 Lines of credit 1,000,000 - Accounts payable: General Partner 265,393 216,347 Equipment purchases - 42,227 Other 267,963 201,642 Accrued interest 116,390 123,629 Deposit due to lessee 126,318 984,213 Unearned operating lease income 289,918 413,106 ---------------- ----------------- Total liabilities 24,282,327 27,279,931 Partners' capital: General Partner 61,755 44,831 Limited Partners 32,714,137 38,814,929 ---------------- ----------------- Total partners' capital 32,775,892 38,859,760 ---------------- ----------------- $57,058,219 $66,139,691 ================ ================= See accompanying notes. Page 3 ATEL CASH DISTRIBUTION FUND IV, L.P. INCOME STATEMENTS NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995 (Unaudited)
Nine Months Ended Three Months Ended September 30, September 30, Revenues: 1996 1995 1996 1995 Lease revenues: Operating $7,853,459 $8,763,057 $2,665,750 $2,965,288 Direct financing 927,152 684,979 333,657 227,613 Leveraged 141,398 146,187 47,132 48,729 Gain on sales of assets 1,221,635 507,971 431,245 452,374 Other 9,285 3,104 6,684 823 Interest income 17,507 44,656 5,842 8,776 ---------------- ----------------- ---------------- ----------------- 10,170,436 10,149,954 3,490,310 3,703,603 Expenses: Depreciation and amortization 5,992,865 6,522,581 1,945,759 2,211,022 Interest 1,389,409 1,432,634 402,743 514,790 Management fees 793,726 656,026 310,428 130,326 Administrative cost reimbursements 192,711 237,528 76,017 81,959 Professional fees 41,723 67,753 18,462 12,970 Provision for losses 102,796 100,290 36,000 36,838 Other 77,399 79,038 19,011 21,075 ---------------- ----------------- ---------------- ----------------- 8,590,629 9,095,850 2,808,420 3,008,980 ---------------- ----------------- ---------------- ----------------- Income before extraordinary item 1,579,807 1,054,104 681,890 694,623 Extraordinary gain on early extinguishment of debt 112,546 - 112,546 - ---------------- ----------------- ---------------- ----------------- Net income $1,692,353 $1,054,104 $794,436 $694,623 ================ ================= ================ ================= Net income: General Partner $16,924 $10,541 $7,944 $6,946 Limited Partners 1,675,429 1,043,563 786,492 687,677 ---------------- ----------------- ---------------- ----------------- $1,692,353 $1,054,104 $794,436 $694,623 ================ ================= ================ ================= Income before extraordinary item per limited partnership unit $0.21 $0.14 $0.09 $0.09 Extraordinary gain on early extinguishment of debt per limited partnership unit 0.01 - 0.01 - ---------------- ----------------- ---------------- ----------------- Net income per Limited Partnership unit $0.22 $0.14 $0.10 $0.09 ================ ================= ================ ================= Weighted average number of units outstanding 7,487,350 7,492,550 7,487,850 7,493,883 ================ ================= ================ =================
See accompanying notes. Page 4 ATEL CASH DISTRIBUTION FUND IV, L.P. STATEMENT OF CHANGES IN PARTNERS' CAPITAL NINE MONTH PERIOD ENDED SEPTEMBER 30, 1996 (Unaudited)
Limited Partners General Units Amount Partner Total ----- ------ ------- ----- Balance December 31, 1995 7,488,850 $38,814,929 $44,831 $38,859,760 Distributions to limited partners (7,773,292) - (7,773,292) Repurchase of limited partnership units (1,500) (2,929) - (2,929) Net income 1,675,429 16,924 1,692,353 ---------------- ----------------- ---------------- ----------------- Balance September 30, 1996 7,487,350 $32,714,137 $61,755 $32,775,892 ================ ================= ================ =================
See accompanying notes. Page 5 ATEL CASH DISTRIBUTION FUND IV, L.P. STATEMENTS OF CASH FLOWS NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 1996 (Unaudited)
Nine Months Ended Three Months Ended September 30, September 30, 1996 1995 1996 1995 ---- ---- ---- ---- Operating activities: Net income $1,692,353 $1,054,104 $794,436 $694,623 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 5,992,865 6,522,581 1,945,759 2,211,022 Leveraged lease income (141,398) (146,187) (47,132) (48,729) Gain on sales of assets (1,221,635) (507,971) (431,245) (452,374) Provision for losses 102,796 100,290 36,000 36,838 Extraordinary gain on early extinguishment of non-recourse debt (112,546) - (112,546) - Changes in operating assets and liabilities: Accounts receivable 71,923 (181,033) (88,738) (201,619) Accounts payable, General Partner 49,046 (995,630) 108,625 (129,120) Accounts payable, other 66,321 22,528 153,115 (77,251) Accrued interest (7,239) 16,837 (24,604) 26,319 Deposits due to lessees (857,895) - (86,871) - Unearned operating lease income (123,188) (154,774) (27,743) (214,985) ---------------- ----------------- ---------------- ----------------- Net cash from operations 5,511,403 5,730,745 2,219,056 1,844,724 ---------------- ----------------- ---------------- ----------------- Investing activities: Purchase of equipment on operating leases (199,481) (7,764,150) 1,370,272 (439,312) Purchase of equipment on direct financing leases (2,274,344) (1,068,937) (1,375,395) (452,630) Purchase of residual value interests - (175,974) - - Reduction of net investment in direct financing leases 2,183,351 1,541,829 463,883 525,878 Reduction of net investment in leveraged leases 16,725 397,764 3,718 4,462 Proceeds from sales of lease assets 3,615,483 2,244,191 1,463,263 1,845,427 Payments of initial direct costs to General Partner - (258,268) - (21,404) Principal payments received on notes receivable 101,267 101,266 33,756 33,756 Initial direct costs paid to others - (64,940) - - ---------------- ----------------- ---------------- ----------------- Net cash (used in) provided by investing activities 3,443,001 (4,982,279) 1,959,497 1,496,177 ---------------- ----------------- ---------------- -----------------
Page 6 ATEL CASH DISTRIBUTION FUND IV, L.P. STATEMENTS OF CASH FLOWS (CONTINUED) NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 1996 (Unaudited)
Nine Months Ended Three Months Ended September 30, September 30, 1996 1995 1996 1995 ---- ---- ---- ---- Financing activities: Proceeds of non-recourse debt 2,847,801 7,851,380 2,847,801 7,851,380 Repayment of non-recourse debt (5,817,677) (4,815,053) (2,650,037) (3,167,088) Borrowings under lines of credit 4,000,000 3,798,001 1,500,000 - Repayments of lines of credit (3,000,000) (2,600,000) (3,000,000) (2,600,000) Distributions to limited partners (7,773,292) (7,302,706) (2,623,777) (2,433,918) Repurchase of units (2,929) (15,501) - - Payment of syndication costs - (5,368) - - ---------------- ----------------- ---------------- ----------------- Net cash used in financing activities (9,746,097) (3,089,247) (3,926,013) (349,626) ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in cash and cash equivalents (791,693) (2,340,781) 252,540 2,991,275 Cash and cash equivalents at beginning of period 1,355,258 7,152,081 311,025 1,820,025 ---------------- ----------------- ---------------- ----------------- Cash and cash equivalents at end of period $563,565 $4,811,300 $563,565 $4,811,300 ================ ================= ================ ================= Supplemental disclosures of cash flow information: Cash paid for interest $1,396,648 $1,415,797 $427,347 $488,471 ================ ================= ================ ================= Supplemental disclosure of non-cash transactions: Gain on extinguishment of non-recourse debt $112,546 $112,546 ================ ================
See accompanying notes. Page 7 ATEL CASH DISTRIBUTION FUND IV, L.P. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (Unaudited) 1. Interim financial statements: The unaudited interim financial statements reflect all adjustments which are, in the opinion of the general partners, necessary to a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. These unaudited interim financial statements should be read in conjunction with the most recent report on Form 10K. 2. Investment in leases: The Partnership's investment in leases consists of the following:
Depreciation Expense or Reclass- December 31, Amortization ifications & September 30, 1995 Additions of Leases Dispositions 1996 ---- --------- --------- ------------ ---- Net investment in operating leases $45,593,701 $157,254 ($5,564,936) ($4,079,923) $36,106,096 Net investment in direct financing leases 11,948,261 2,274,344 (2,183,351) 835,994 12,875,248 Net investment in leveraged leases 4,675,926 - 124,673 - 4,800,599 Equipment held for sale or lease - - (11,949) 305,955 294,006 Residual value interests 610,878 - - - 610,878 Initial direct costs, net of accumulated amortization of $1,318,238 in 1995 and $1,460,180 in 1996 1,852,577 - (415,980) - 1,436,597 Reserve for losses (714,139) (102,796) - 544,126 (272,809) ------------------- ------------------ ----------------- ---------------- ----------------- $63,967,204 $2,328,802 ($8,051,543) ($2,393,848) $55,850,615 =================== ================== ================= ================ =================
Page 8 ATEL CASH DISTRIBUTION FUND IV, L.P. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (Unaudited) 2. Investment in lease assets (continued): At September 30, 1995, equipment on operating leases consists of the following:
Balance Balance December 31, Acquisitions, Dispositions & Reclassifications September 30, 1995 1st Quarter 2nd Quarter 3rd Quarter 1996 ---- ----------- ----------- ----------- ---- Transportation $24,984,962 ($1,847,200) ($210,277) ($545,047) $22,382,438 Corporate aircraft 9,635,969 - - - 9,635,969 Printing 5,523,249 - - - 5,523,249 Construction equipment 4,985,297 - - - 4,985,297 Other 4,726,040 - - - 4,726,040 Mining 6,570,460 - (2,222,500) - 4,347,960 Materials handling 3,915,999 - - - 3,915,999 Ground support equipment 1,127,988 - - - 1,127,988 Data processing 694,308 157,254 - - 851,562 Manufacturing 1,587,670 - - (1,130,000) 457,670 Office equipment 216,080 - - - 216,080 Furniture and fixtures 2,353,608 - - (2,353,608) - -------------------- ---------------- ----------------- ---------------- ----------------- 66,321,630 (1,689,946) (2,432,777) (4,028,655) 58,170,252 Accumulated depreciation (20,727,929) (790,028) (218,066) (328,133) (22,064,156) -------------------- ---------------- ----------------- ---------------- ----------------- $45,593,701 ($2,479,974) ($2,650,843) ($4,356,788) $36,106,096 ==================== ================ ================= ================ =================
All of the equipment on operating leases was acquired during 1992, 1993, 1994, 1995 and 1996. At September 30, 1996, the aggregate amounts of future minimum lease payments are as follows:
Direct Operating Financing Total --------- --------- ----- Three months ending December 31, 1996 $2,579,070 $1,092,317 $3,671,387 Year ending December 31, 1997 8,783,188 4,010,850 12,794,038 1998 6,993,866 3,536,444 10,530,310 1999 6,142,265 2,390,141 8,532,406 2000 2,547,270 1,410,221 3,957,491 Thereafter 3,790,590 1,256,433 5,047,023 ---------------- ----------------- ---------------- $30,836,249 $13,696,406 $44,532,655 ================ ================= ================
Page 9 ATEL CASH DISTRIBUTION FUND IV, L.P. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (Unaudited) 4. Non-recourse debt: Notes payable to financial institutions are due in varying monthly, quarterly and semi-annual installments of principal and interest. The notes are secured by assignments of lease payments and pledges of the assets which were purchased with the proceeds of the particular notes. Interest rates on the notes vary from 7.04% to 13.3%. Future minimum principal payments of non-recourse debt as of September 30, 1996 are as follows:
Principal Interest Total --------- -------- ----- Three months ending December 31, 1996 $1,765,4246 $443,276 $2,208,700 Year ending December 31, 1997 5,828,339 1,425,131 7,253,470 1998 5,167,306 992,328 6,159,634 1999 5,055,577 585,451 5,641,028 2000 2,324,358 276,272 2,600,630 Thereafter 2,075,341 160,506 2,235,847 ---------------- ----------------- ---------------- $22,216,345 $3,882,964 $26,099,309 ================ ================= ================
5. Related party transactions: The terms of the Agreement of Limited Partnership provide that the General Partners and/or Affiliates are entitled to receive certain fees for equipment acquisition, management and resale and for management of the Partnership. The General Partners and/or Affiliates earned the following fees and commissions, pursuant to the Agreement of Limited Partnership as follows: 1996 1995 ---- ---- Incentive and equipment management fees $793,726 $656,026 Administrative cost reimbursements 192,711 237,528 ---------------- ----------------- $986,437 $893,554 ================ ================= Page 10 ATEL CASH DISTRIBUTION FUND IV, L.P. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (Unaudited) 6. Partner's capital: The Fund is authorized to issue up to 7,500,000 Units of Limited Partnership interest in addition to the Initial Limited Partners. The Fund's Net Profits, Net Losses and Tax Credits are to be allocated 99% to the Limited Partners and 1% to the General Partner. As more fully described in the Partnership Agreement, available Cash from Operations and Cash from Sales or Refinancing shall be distributed as follows: First, 5% of Distributions of Cash from Operations to the General Partner as Incentive Management Fees. Second, the balance to the Limited Partners until the Limited Partners have received aggregate Distributions, as defined, in an amount equal to their Original Invested Capital, as defined, plus a 10% per annum cumulative (compounded daily) return on their Adjusted Invested Capital, as defined. Third,the General Partner will receive as Incentive Management Fees, the following: (A) 10% of remaining Cash from Operations, as defined, (B) 15% of remaining Cash from Sales or Refinancing, as defined. Fourth, the balance to the Limited Partners. 7. Line of credit: The Partnership participates with the General Partner and certain of its affiliates in a $70,000,000 revolving line of credit with a financial institution. The line of credit expires on July 18, 1997. The facility, when used by the Partnership, is collateralized by (i) leases and equipment owned by the Partnership and financed by the lines and (ii) all other assets owned by the Partnership except equipment, lease receipts and residual values specifically pledged to other equipment funding sources. Page 11 ATEL CASH DISTRIBUTION FUND IV, L.P. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (Unaudited) 8. Extraordinary gain on extinguishment of debt: In January 1996, Barney's, Inc., one of the Partnership's lessees filed for reorganization under Chapter 11 of the United States Bankruptcy Code. The Partnership determined that the assets under an operating lease to this particular lessee were impaired as of December 31, 1995. The Partnership estimated that only a portion of the contractual cash flows would be received under the lease. Under Financial Accounting Standards Board Statement No. 121 (FAS 121), the estimated cash flows were discounted at the effective rate of the non-recourse debt related to the lease and the assets were written down to the present value of those cash flows. Assets and liabilities related to the lease transaction were as follows as of December 31, 1995: Assets at cost $2,353,608 Accumulated depreciation (900,255) ----------------- Book value of lease assets 1,453,353 Deposits from lessee (86,870) Non-recourse debt (1,212,302) ----------------- Net assets included in the Partnership's balance sheet as of December 31, 1995 before provision for impairment 154,181 Reserve for impairment (544,126) ----------------- Excess of non-recourse debt over net assets ($389,945) ================= On July 19, 1996, the assets subject to the lease were purchased by a third party. As part of the purchase and transaction restructure, the related non-recourse debt was extinguished by the lender and the Partnership received a small amount of cash proceeds. The sale resulted in a gain on the sale of the assets and a gain on the extinguishment of the related non-recourse debt. The following summarizes this transaction: Assets at cost $2,353,608 Accumulated depreciation at June 30, 1996 (1,100,312) ----------------- Book value of lease assets at June 30, 1996 1,253,296 Reserve for impairment (544,126) ----------------- Carrying value at June 30, 1996 709,170 Deposits from lessee retained by Partnership (86,870) ----------------- Excess of carrying value over deposits from lessee 622,300 Gross sales proceeds 1,104,241 ----------------- Gain on sale of assets $481,941 ================= Non-recourse debt $1,212,302 Gross sales proceeds used to extinguish non-recourse debt (1,099,756) ----------------- Extraordinary gain on extinguishment of debt $112,546 ================= Gross sales proceeds $1,104,241 Gross sales proceeds used to extinguish non-recourse debt (1,099,756) ----------------- Net cash proceeds to Partnership $4,485 ================= Page 12 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Capital Resources and Liquidity The Partnership's primary source of liquidity during 1996 was lease revenues. The liquidity of the Partnership will vary in the future, increasing to the extent cash flows from leases exceed expenses, and decreasing as lease assets are acquired, as distributions are made to the Limited Partners and to the extent expenses exceed cash flows from leases. The Partnership currently has available adequate reserves to meet contingencies, but in the event those reserves were found to be inadequate, the Partnership would likely be in a position to borrow against its current portfolio to meet such requirements. The General Partner envisions no such requirements for operating purposes. As of September 30, 1996, the Partnership had borrowed approximately $40,280,000, with a remaining unpaid balance of approximately $22,216,000. Borrowings are to be non-recourse to the Partnership, that is, the only recourse of the lender will be to the equipment or corresponding lease acquired or secured with the loan proceeds. The General Partner expects that aggregate borrowings in the future will be approximately 40% of aggregate equipment cost. In any event, the Agreement of Limited Partnership limits such borrowings to 40% of the total cost of equipment, in aggregate. The Partnership participates with the General Partner and certain of its affiliates in a $70,000,000 revolving line of credit with a financial institution. The line of credit expires on July 18, 1997. The facility, when used by the Partnership, is collateralized by (i) leases and equipment owned by the Partnership and financed by the lines and (ii) all other assets owned by the Partnership except equipment, lease receipts and residual values specifically pledged to other equipment funding sources. No commitments of capital have been or are expected to be made other than for the acquisition of additional equipment. As of September 30, 1996, such commitments totaled $80,000. If inflation in the general economy becomes significant, it may affect the Partnership inasmuch as the residual (resale) values and rates on re-leases of the Partnership's leased assets may increase as the costs of similar assets increase. However, the Partnership's revenues from existing leases would not increase, as such rates are generally fixed for the terms of the leases without adjustment for inflation. If interest rates increase significantly, the lease rates that the Partnership can obtain on future leases will be expected to increase as the cost of capital is a significant factor in the pricing of lease financing. Leases already in place, for the most part, would not be affected by changes in interest rates. 1996 vs. 1995: Nine months: During the first nine months of 1996, operating lease revenues were the primary source of operating cash flows. Total lease revenues decreased by $672,214. In 1996 and 1995, the proceeds from the sales of assets was the most significant source cash flows from investing activities. Proceeds from asset sales and the use of cash for asset acquisitions are not comparable to prior periods nor are they expected to be comparable to future periods. In 1996 and 1995, proceeds from non-recourse debt and borrowings under the line of credit were the only sources of financing cash flows. The proceeds of debt are used to purchase lease assets and as such, are not expected to be comparable from one period to another. Cash used to repay non-recourse debt has increased due to both scheduled and unscheduled debt reductions. (See discussion below regarding the Barney's, Inc. lease transaction and the related extinguishment of debt under the caption "Results of Operations".) Distributions to Limited Partners have increased due to the higher per Unit distribution rate commencing in February 1994. Page 13 Three months: The primary source of cash from operations for the third quarter was lease rents. Lease rents have decreased from the prior year due to asset sales during the preceding twelve months. The investing sources of cash in 1995 were the same as noted above for the nine month period. Amounts of cash used for purchases of assets is not comparable nor is it expected to be comparable from one period to another. In 1996, proceeds from non-recourse debt and borrowings under the line of credit were the Partnership's only financing sources of cash. In 1995, proceeds from non-recourse debt was the only source of financing cash flows. As noted above for the nine month period, these amounts are not expected to be comparable from one period to another. Distributions to Limited Partners have increased for the reasons noted above for the nine month period. Results of Operations Operations in 1996 resulted in net income of $1,692,353 for the nine month period and $794,436 for the three month period. In 1995, operations resulted in net income of $1,054,104 for the nine month period and $694,623 for the three month period. 1996 vs. 1995: Operating lease revenues have decreased due to sales of leased assets during the last twelve months. Effective January 1, 1996, the Partnership suspended the recognition of income under its lease with Barney's, Inc. The non-recourse debt related to this transaction was also put in a non-accrual status, that is, interest expense was no longer accrued. In July 1996, the underlying assets were sold to an unrelated third party and the related debt was extinguished as a part of the transaction. The Partnership recorded a gain on the sale of the assets of $481,942. The sale resulted in the debt being extinguished for less than its carrying amount, resulting in an extraordinary gain of $112,546. The non-accrual of lease revenues on the Barney's lease contributed $370,485 to the decline in operating lease revenues over the nine month period ($123,495 for the three month period). Depreciation and amortization expenses are directly related to the amounts of leased assets and have also decreased from 1995 to 1996. Management fees are related to the amounts of lease revenues and distributions to Limited Partners. In 1995, a larger part of the distributions were from sales proceeds, on which no fees are currently paid. Other expenses have not changed significantly from 1995 to 1996 for the nine month period. Page 14 PART II OTHER INFORMATION Item 1. LEGAL PROCEEDINGS. Inapplicable. Item 2. CHANGES IN SECURITIES. Inapplicable. Item 3. DEFAULTS UPON SENIOR SECURITIES. Inapplicable. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Inapplicable. Item 5. OTHER INFORMATION. Inapplicable. Item 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Documents filed as a part of this report 1. Financial Statements Included in Part I of this report: Balance Sheets, September 30, 1996 and December 31, 1995. Income statements for the nine and three month periods ended September 30, 1996 and 1995. Statement of changes in partners' equity for the nine month period ended September 30, 1996. Statements of cash flows for the nine and three month periods ended September 30, 1996 and 1995. Notes to the Financial Statements 2. Financial Statement Schedules All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted. (b) Report on Form 8-K None Page 15 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. Date: November 11, 1996 ATEL CASH DISTRIBUTION FUND IV, L.P. (Registrant) By: ATEL Financial Corporation General Partner of Registrant By: /s/ A. J. BATT ----------------------------------- A. J. Batt President and Chief Executive Officer of General Partner By: /s/ DEAN L. CASH ----------------------------------- Dean L. Cash Executive Vice President of General Partner By: /s/ F. RANDALL BIGONY --------------------------------------- F. Randall Bigony Principal financial officer of registrant By: /s/ DONALD E. CARPENTER --------------------------------------- Donald E. Carpenter Principal accounting officer of registrant Page 16 EX-27 2 FDS --
5 9-MOS DEC-31-1996 SEP-30-1996 563565 0 610284 0 0 0 0 0 57058219 0 0 0 0 0 32775892 57058219 0 10170436 0 0 7098424 102796 1389409 1579807 0 1579807 0 112546 0 1692353 0 0
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