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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended Commission file number 33-32744
December 31, 2000
CSA Income Fund IV Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts No.04-3072449
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
22 Batterymarch St., Boston, MA 02109
(Address of principal executive Zip Code
offices)
Registrant's telephone number, including area code:(617)357-1700
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: 506,776
Units of Limited Partnership Interest
Indicate by check whether 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
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]
Number of shares outstanding of each registrant's classes of
securities:
Title of Each Class Number of Units
Units of Limited Partnership at December 31, 2000
Interest: $100 per unit 506,776
DOCUMENTS INCORPORATED BY REFERENCE
Portions of Part IV are incorporated by reference
to Amendment No. 1 to Form S-1 and Form S-1,
Registration No. 33-32744
The exhibit index is located on pages 18 and 19.
Part I
Item 1. Business
CSA Income Fund IV Limited Partnership (the "Partnership") is a limited
partnership organized under the provisions of the Massachusetts Uniform Limited
Partnership Act. The Partnership is composed of CSA Lease Funds, Inc. (an
affiliate of CSA Financial Corp.), the sole General Partner, and as of December
31, 2000, 2,679 Limited Partners owning 506,776 Units of Limited Partnership
Interest of $100 each. The capital contributions of the Partners aggregated
$50,677,600. The Partnership was formed on December 21, 1989 and commenced
operations on April 18, 1990.
During the fourth quarter of year 2000, the General Partner of CSA Income Fund
IV Limited Partnership determined that it was in the best interest of the
Partnership and the Limited Partners to begin the wind-up of the Partnership in
year 2001. The wind-up is currently anticipated to be completed in year 2002.
The Partnership was organized to engage in the business of acquiring income
- -producing equipment for investment. The Partnership's principal objectives
are:
1. To acquire and lease equipment, primarily through Operating Leases,
to generate income during their entire useful life;
2. To provide monthly distributions of cash to the Limited Partners
from leasing revenues and from the proceeds of sale or other
disposition of Partnership equipment;
3. To reinvest in additional equipment a portion of lease revenues and
a substantial portion of Cash From Sales and Refinancing during the
first years of the Partnership's operations.
The Partnership was formed primarily for investment purposes and not as a "tax
shelter".
The Partnership has no direct employees. The General Partner has full and
exclusive discretion in management and control of the Partnership.
Selection of the equipment for purchase and lease is based principally on the
General Partner's evaluation of the usefulness of the equipment in commercial or
industrial applications and its estimate of the potential demand for the
equipment at the end of the initial lease term.
The Partnership's equipment may include:
1. New and reconditioned computer peripheral equipment, computer terminal
systems and data processing systems manufactured by companies such as Compaq
Computer Corporation, Dell Computer Corporation, EMC Corporation and
International Business Machines, Inc. (IBM).
2. New telecommunications and telecomputer equipment consisting
primarily of private automated branch exchanges (PBX's), advanced
high-speed digital telephone switching devices, voice/data
transmission devices and telephone/computer networks as well as
telephone handsets and facsimile transmission products.
3. New office equipment consisting primarily of photocopying and
graphic processing equipment.
4. New highway transportation equipment and new and reconditioned
transportation equipment consisting primarily of tractors,
trailers, trucks, intermodal equipment, railroad rolling stock,
passenger vehicles and corporate or commercial aircraft.
5. Miscellaneous other types of equipment which meets the investment
objectives of the Partnership.
The equipment leasing industry is highly competitive. In initiating its leasing
transactions, the Partnership competes with leasing companies, manufacturers
that lease their products directly, equipment brokers, dealers and financial
institutions, including commercial banks and insurance companies. Many
competitors are larger than the Partnership and have access to more favorable
financing. Competitive factors in the equipment leasing business primarily
involve pricing and other financial arrangements. Marketing capability is also
a factor.
As of December 31, 2000, substantially all of the remaining equipment in the
Partnership's portfolio was leased under 95 separate leases to 50 lessees. The
lessees providing at least 10% of total revenues during 2000 are as follows:
America Online Inc. 33%
America West Airlines, Inc. 12%
Cardservice International, Inc. 12%
As of December 31, 2000, approximately 12% of the Partnership's equipment
portfolio (based on cost) is leased outside the United States. The Partnership's
leases and equipment are described more fully in Notes 3 and 4 to the Financial
Statements included in Item 8.
Item 2. Properties
The Partnership neither owns nor leases office space or equipment for the
purpose of managing its day-to-day affairs. The General Partner, CSA Lease
Funds, Inc. ("CLF"), has exclusive control over all aspects of the business of
the Partnership, including provision of any necessary office space. As such,
CLF will be compensated through Management fees and reimbursement of General and
Administrative costs related to managing the Partnership's business. Excluded
from the allowable reimbursement to the General Partner, however, will be any of
the following: (1) Expenditures for rent or utilities; and (2) Certain other
administrative items.
Item 3. Legal Proceedings
The Partnership is not a party to any pending legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the fourth quarter of 2000.
PART II
Item 5. Market for the Registrant's Equity Securities and Related
Security Holder Matters
a. The Partnership's limited partnership interests are not publicly traded.
There is no active market for the Partnership's limited partnership interests
and it is unlikely that one will develop. However, partners have received
offers to purchase their Limited Partnership units from third parties. In
such cases the General Partner has recommended the partner should consult
their Financial Advisors. If the partner still has intentions of selling
their units, the General Partner, through its affiliate CSA Financial Corp.
("CSA"), would be willing to make an offer. In certain cases, CSA has
purchased Partnership units.
b. Approximate Number of Equity Security Holders:
Title of Class Number of Limited Partners
Units of Limited Partnership Interests as of 12/31/00
506,776 2,679
Item 6. Selected Financial Data
The following table sets forth selected financial information regarding the
Partnership's financial position and operating results. The information should
be used in conjunction with the Financial Statements and Notes thereto, and the
General Partner's Discussion and Analysis of Financial Condition and Results of
Operations, which are included in Items 7 and 8 of this Report.
Years Ended December 31,
(IN THOUSANDS EXCEPT PER UNIT AMOUNTS)
2000 1999 1998 1997 1996
Total
Revenues $10,808 $15,329 $16,987 $13,488 $17,641
Net Income 1,049 1,250 2,671 2,716 1,772
Net Income
per Limited
Partnership
Unit 2.05 2.44 5.22 5.31 3.46
Total Assets 12,266 21,620 30,692 36,736 25,498
Notes Payable 2,285 8,186 15,204 20,923 7,573
Limited Recourse
Notes Payable - - - - 229
Cash Distribution
per Limited
Partnership Unit
Outstanding $8.83 $6.33 $ 6.00 $ 7.00 $ 8.00
Item 7. General Partner's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Rental income for the years ended December 31, 2000, 1999 and 1998 was
$9,902,211, $14,903,995, and $16,031,035, respectively. Net income for the years
ended December 31, 2000, 1999 and 1998 was $1,048,500, $1,249,602, and
$2,670,654, respectively. The decrease in rental income and net income is
primarily due to anticipated lease expirations as the partnership approaches
wind-up. Net income was also impacted by increased storage and refurbishment
costs relating to expired equipment currently being sold from the Partnership's
portfolio. This expired equipment includes several large personal computer (PC)
leases, which are being remarketed in small lots to obtain maximum sales
proceeds. Net income was also affected, in comparison, by a gain on sale of
equipment in 2000 of $711,614, as compared to $258,512, and $863,210, for the
years ended 1999 and 1998. Depreciation expense for 2000, 1999 and 1998 was
$8,056,432, $11,508,608, and $10,967,117, respectively.
Interest income for 2000, 1999 and 1998 was $209,433, $158,617, and $69,999,
respectively. Interest expense was $460,138, $1,050,363, and $1,626,363 for the
years ended December 31, 2000, 1999, and 1998, respectively.
Liquidity and Capital Resources
During 2000, the Partnership generated $8,736,998 in cash flow from operations
and $2,637,214 cash flow from the sale of equipment. The Partnership utilized
these funds, proceeds from new equipment financings of $485,038 and cash on hand
to reduce outstanding notes payable by $6,386,008, make cash distributions of
$4,521,730 and acquire additional equipment of $1,142,310.
Primarily due to year-end lease expirations, the Partnership had approximately
$300,000 in current fair market value of equipment off lease and in storage. The
General Partner has aggressively remarketed a significant portion of this
equipment during the first quarter of year 2001. The remarketing has resulted in
sales of approximately fifty percent of the equipment that was in storage on
December 31, 2000.
The Partnership's liquidity is determined by cash from operations provided by
the leases currently in place. It is expected that this cash flow will be
sufficient to service outstanding debt, pay monthly distributions to the
partners and meet any other commitments and obligations which may arise in the
ordinary course of business.
To date, the Partnership has made cash distributions to the Limited Partners
ranging from 72% to 94% 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 distributions and
provide a return on this investment by continued distributions.
During the fourth quarter of year 2000, The General Partner of CSA Income
Fund IV Limited Partnership determined that it was in the best interest of
the Partnership and the Limited Partners to begin the wind-up of the
Partnership in year 2001. The wind-up is currently anticipated to be completed
during year 2002.
During year 2000, CSA Income Fund IV Limited Partnership increased the monthly
distribution on August 15th from an annualized rate of 8% to 10%. Future
distributions will be based on the Partnership's current cash position, as well
as forecasted cash flow projections.
Management reviews the Partnership's projected performance on a periodic basis.
Based on an analysis of the remaining assets in the Partnership's portfolio
completed as part of the annual audit process, the General Partner presently
estimates that the 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.
Quarterly Financial Data - unaudited
Summarized unaudited quarterly financial data for the years ended December 31,
2000 and 1999 are as follows:
2000 Quarter Ended: 12/31 9/30 6/30 3/31
Total Revenues $2,456,058 $2,459,298 $2,722,748 $3,170,334
Net Income 269,753 115,240 276,634 386,873
Net Income
Per Limited
Partnership Unit
Outstanding .53 .22 .54 .76
Cash Distributions
Per Limited
Partnership Unit
Outstanding 2.50 2.33 2.00 2.00
1999 Quarter Ended: 12/31 9/30 6/30 3/31
Total Revenues $3,658,063 $3,397,732 $4,150,098 $4,123,092
Net Income 115,912 227,711 488,119 417,860
Net Income
Per Limited
Partnership Unit
Outstanding .22 .45 .95 .82
Cash Distributions
Per Limited
Partnership Unit
Outstanding 1.83 1.50 1.50 1.50
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
N/A
Item 8. Financial Statements
CSA Income Fund IV Limited Partnership
Index to Financial Statements
Page
Number
Independent Auditors' Report 8
Statements of Financial Position
as of December 31, 2000 and 1999 9
Statements for the Years Ended
December 31, 2000, 1999 and 1998:
Operations 10
Cash Flows 11
Changes in Partners' Capital (Deficit) 12
Notes to Financial Statements 13
INDEPENDENT AUDITORS' REPORT
To the Partners of CSA Income Fund IV Limited Partnership
We have audited the accompanying statements of financial position of CSA Income
Fund IV Limited Partnership as of December 31, 2000 and 1999, and the related
statements of operations, cash flows, and changes in partners' capital (deficit)
for the three years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of CSA Income Fund IV Limited
Partnership as of December 31, 2000 and 1999, and the results of its operations
and its cash flows for the three years then ended in conformity with accounting
principles generally accepted in the United States of America.
Sullivan Bille, P.C.
Boston, Massachusetts
February 26, 2001
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statements of Financial Position as of
December 31, 2000 and 1999
2000 1999
Asset
Cash and cash equivalents $3,488,610 $3,679,408
Rentals receivable 206,146 326,758
Remarketing Receivables 578,038 -
Accounts receivable-affiliates 20,585 223,076
Rental equipment, at cost 38,993,398 52,073,878
Less accumulated depreciation (31,020,635) (34,683,355)
Net rental equipment 7,972,763 17,390,523
Total assets $12,266,142 $21,619,765
Liabilities and Partners' Capital
Accrued management fees $ 116,621 $ 93,749
Accrued interest expense - 11,562
Accounts payable 32,800 12,982
Deferred income 127,957 138,508
Notes payable 2,284,571 8,185,541
Total liabilities 2,561,949 8,442,342
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 61,643 51,158
Cumulative cash distributions (431,769) (386,554)
(369,126) (334,396)
Limited Partners (506,776 units):
Capital contributions net of
offering costs 46,201,039 46,201,039
Cumulative net income 6,102,487 5,064,472
Cumulative cash distributions (42,230,207) (37,753,692)
10,073,319 13,511,819
Total partners' capital 9,704,193 13,177,423
Total liabilities and
partners' capital $12,266,142 $21,619,765
See accompanying notes to financial statements.
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statements of Operations
for the years ended December 31, 2000, 1999 and 1998
2000 1999 1998
Revenue:
Rental income $ 9,902,211 $ 14,903,995 $16,031,035
Interest income 209,433 158,617 69,999
Gain on sale of
equipment 711,614 258,512 863,210
Net (loss) gain on foreign
currency transactions (14,820) 7,861 22,858
Total revenue 10,808,438 15,328,985 16,987,102
Expenses:
Depreciation 8,056,432 11,508,608 10,967,117
Interest 460,138 1,050,363 1,626,363
Management fees 791,670 1,193,749 1,456,914
General and
administrative 451,698 326,663 266,054
Total expenses 9,759,938 14,079,383 14,316,448
Net income $1,048,500 $ 1,249,602 $ 2,670,654
Income allocation:
General Partner $ 10,485 $ 12,496 $ 26,707
Limited Partners 1,038,015 1,237,106 2,643,947
$1,048,500 $1,249,602 $ 2,670,654
Net income per
Limited Partnership
Unit $ 2.05 $ 2.44 $ 5.22
Number of
Limited Partnership
units outstanding 506,776 506,776 506,776
See accompanying notes to financial statements.
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statements of Cash Flows for the
years ended December 31, 2000, 1999 and 1998
2000 1999 1998
Cash flows from operations:
Cash received from rental
of equipment $10,199,943 $15,334,821 $16,083,475
Cash paid for operating and
management expenses (1,200,678) (1,617,216) ( 1,717,777)
Interest paid (471,700) (1,071,766) ( 1,645,658)
Interest received 209,433 158,617 69,999
Net cash from operations 8,736,998 12,804,456 12,790,039
Cash flows from investments:
Purchase of equipment (1,142,310) (2,230,104) (7,423,505)
Sale of equipment 2,637,214 2,805,158 2,237,768
Net cash provided by
(used for) investments 1,494,904 575,054 (5,185,737)
Cash flows from financing:
Proceeds from notes payable 485,038 3,192,141 5,070,515
Repayment of notes payable (6,386,008) (10,210,436) (10,790,020)
Payment of cash
distributions (4,521,730) (3,242,000) (3,071,370)
Net cash used for
financing (10,422,700) (10,260,295) (8,790,875)
Net change in cash and
cash equivalents (190,798) 3,119,215 (1,186,573)
Cash and cash equivalents
at beginning of year 3,679,408 560,193 1,746,766
Cash and cash equivalents
at end of year $3,488,610 $3,679,408 $ 560,193
See accompanying notes to financial statements.
CSA INCOME FUND IV LIMITED PARTNERSHIP
Statement of Changes in Partners' Capital (Deficit)
For years ended December 31, 2000, 1999, and 1998
Limited General
Partners Partner Total
Balance at December 31, 1997 $15,881,002 $ (310,465) $15,570,537
Net income 2,643,947 26,707 2,670,654
Cash distributions (3,040,656) ( 30,714) (3,071,370)
Balance at December 31, 1998 15,484,293 (314,472) 15,169,821
Net income 1,237,106 12,496 1,249,602
Cash distributions (3,209,580) ( 32,420) (3,242,000)
Balance at December 31, 1999 13,511,819 (334,396) 13,177,423
Net Income 1,038,015 10,485 1,048,500
Cash Distributions (4,476,515) (45,215) (4,521,730)
Balance at December 31, 2000 $10,073,319 $ (369,126) $ 9,704,193
See accompanying notes to financial statements
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
December 31, 2000
(1) Organization
CSA Income Fund IV Limited Partnership ("the Partnership") was formed under the
Massachusetts Uniform Limited Partnership Act on December 21, 1989 with an
initial investment of $1,000, from its sole General Partner, CSA Lease Funds,
Inc. and the purchase of 10 Limited Partnership Units at $100 each by an initial
Limited Partner. The Partnership's primary activity is to invest in equipment
to be leased to third parties. On February 22, 1990, the Partnership began its
offering of Limited Partnership Units. The Partnership commenced operations on
April 18, 1990. As of December 31, 2000, the Partnership has 506,776 units of
Limited Partnership interest outstanding representing aggregate capital
contributions of $50,677,600.
During the fourth quarter of year 2000, the General Partner of CSA Income Fund
IV Limited Partnership determined that it was in the best interest of the
Partnership and the Limited Partners to begin the wind-up of the Partnership in
year 2001. The wind-up is currently anticipated to be completed in year 2002.
Distributable cash from operations, sales or refinancing and profits or losses
for federal income tax purposes are allocated 99% to the Limited Partners and 1%
to the General Partner until Payout has occurred, and thereafter, 85% and 15%
respectively. Payout is achieved when the aggregate amount of all distributions
to the Limited Partners equals the amount of the Limited Partners' original
invested capital plus a cumulative 9% annual return (compounded daily) on
unreturned invested capital.
In accordance with the Partnership Agreement, the Partnership is liable to the
General Partner (or its affiliates) for management fees calculated at 5% of
gross rental revenues and to certain reimbursable operating expenses subject to
limitations stated in the Partnership Agreement. During 1994, the Limited
Partners approved an Amendment to the Partnership Agreement allowing for the
payment of Management Fees based on gross rental revenues on Sales Agency
leases.
(2) Significant Accounting Policies
The Partnership records are maintained on the accrual basis of accounting.
The Partnership accounts for equipment leases as operating leases; therefore,
rental income is reported when earned. Equipment purchases are depreciated on a
straight-line basis over the initial term of the lease to estimated realizable
value. On a periodic basis, the Partnership conducts a review of the residual
value of its equipment as compared to the estimated net realizable values for
such equipment upon expiration of the related lease. In connection with this
review , there were no residual value depreciation adjustments in 2000, 1999 or
1998.
Deferred income represents prepaid rentals received for active leases that are
recognized when earned.
No provision for income taxes has been made as the liability for such taxes is
that of the Partners rather than the Partnership. The Partnership's federal tax
return is prepared solely to arrive at the Partners' individual taxable income
or loss as reported on form K-1. Partnership taxable income in 2000, 1999 and
1998 was $2,102,735, $3,058,315, and $1,271,389, respectively. The differences
between Partnership taxable income and book income are primarily due to the
difference between tax and book depreciation methods and the related differences
in the gain or loss on sales of equipment.
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
The Partnership considers short-term investments with original maturities of
three months or less to be cash equivalents.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the General Partner to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities as of the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
year. Actual results could differ from those estimates.
(3) Rental Equipment
The Partnership purchases equipment subject to existing leases either directly
from CSA Financial Corp. or the manufacturer. The purchase price to the
Partnership is equal to the lesser of fair market value or cost as adjusted, if
necessary, for rents received and carrying costs, plus an acquisition fee of 4%
of cost. In accordance with Section 6.4 (b) of the Partnership Agreement, the
total of all acquisition fees paid to the General Partner shall not exceed 15%
of the total Capital Contributions received by the Partnership. This lifetime
acquisition fee limit was met during 1996 and the General Partner is no longer
paid acquisition fees on any new Partnership equipment acquisitions. Also, in
accordance with Section 8.1 and 8.2 of the Partnership Agreement, during the
year 2000, the Partnership reached it's expiration period for new equipment
acquisitions which lead to the announced wind-up process.
A summary of changes in rental equipment owned and its related accumulated
depreciation is as follows:
Beginning Ending
Balance Additions Sales Balance
Costs for years ended:
December 31, 1998 $59,318,040 $ 7,423,505 $ 6,785,399 $59,956,146
December 31, 1999 $59,956,146 $ 2,230,104 $10,112,372 $52,073,878
December 31, 2000 $52,073,878 $ 1,142,310 $14,222,790 $38,993,398
Accumulated depreciation for
the years ended:
December 31, 1998 $25,193,487 $10,967,117 $ 5,201,788 $30,958,816
December 31, 1999 $30,958,816 $11,508,608 $ 7,784,069 $34,683,355
December 31, 2000 $34,683,355 $ 8,056,432 $11,719,152 $31,020,635
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
(4) Leases
As of December 31, 2000, substantially all of the Partnership's equipment was
leased under 95 separate leases to 50 lessees. Approximately 12% of the
Partnership's equipment portfolio (based on cost) has been leased outside the
United States. Three lessees represented approximately 57% (33%, 12% and 12%,
respectively) of the Partnership's revenues in 2000 as compared to two lessees
representing 34% (22% and 12%, respectively) in 1999 and two lessees
representing 41% (21% and 20%, respectively) in 1998.
Minimum annual lease rentals scheduled to be received under existing
noncancellable operating leases are as follows:
Year Amount
2001 $ 4,549,724
2002 1,567,221
2003 1,068,399
2004 780,000
2005 390,000
$ 8,355,344
(5) Notes Payable
Notes payable consist of nonrecourse notes due in monthly, quarterly and annual
installments, with interest rates that range from 6.85% to 9.03% per annum.
Such notes are collateralized by equipment with a cost of $19,735,548. Annual
maturities of notes payable at December 31, 2000, are as follows:
Year Amount
2001 $ 1,967,579
2002 153,085
2003 163,907
$ 2,284,571
CSA INCOME FUND IV LIMITED PARTNERSHIP
Notes to Financial Statements
(6) Fair Values of Financial Instruments
The following methods and assumptions were used to estimate the fair value of
financial instruments:
Cash and Cash Equivalents
The carrying amount of cash and cash equivalents approximates its fair value due
to their short maturity.
Notes Payable
The fair value of the Partnership's notes payable is based on the market price
for the same or similar debt issues or on the current rates offered to the
Partnership for debt with the same remaining maturity. The carrying amount of
notes payable approximates fair value.
(7) Related Party Transactions
Fees and other expenses paid or accrued to be paid by the Partnership to the
General Partner or affiliates of the General Partner for 2000, 1999 and 1998 are
as follows:
2000 1999 1998
Management fees $ 791,670 $ 1,193,749 $ 1,456,914
Reimbursable operating
expenses 251,203 183,055 172,879
$ 1,042,873 $ 1,376,804 $ 1,629,793
(8) Net Cash Provided from Operations
The reconciliation of net income to net cash from operations for 2000, 1999 and
1998 is as follows:
2000 1999 1998
Net Income $ 1,048,500 $ 1,249,602 $ 2,670,654
Gain on sale of equipment (711,614) (258,512) (863,210)
Depreciation 8,056,432 11,508,608 10,967,117
Decrease (increase) in
receivables 323,103 365,853 (60,215)
Increase (decrease) in payables
and deferred income 20,577 (61,095) 75,693
Net cash from operations $ 8,736,998 $12,804,456 $12,790,039
(9) Net Gain/(Loss) on Foreign Currency Transactions
Net gain/loss from foreign currency transactions resulted from exchange gains
and losses on certain leases which call for the payment of rentals in foreign
currency.
(10) Reclassification of Amounts
Certain amounts in the Financial Statement for the years ended December 31, 1999
and 1998 have been reclassified to conform to the current year presentation.
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosures
None
PART III
Item 10. Directors and Executive Officers of the Registrant
The Partnership has no directors or officers. All management functions are
performed by CSA Lease Funds, Inc., the corporate General Partner. The current
directors and officers of the corporate General Partner are:
Name Age Title(s) Elected
J. Frank Keohane 64 Director & President 04/01/88
Richard P. Timmons 46 Controller 03/01/95
Trevor A. Keohane 34 Director 05/28/93
Gerald J. Porro 53 Clerk 02/01/01
Term of Office: Until a successor is elected.
Item 11. Executive Compensation
(a), (b), (c), (d) and (e): The Officers and Directors of the General Partner
receive no current or proposed direct remuneration in such capacities, pursuant
to any standard arrangements or otherwise, from the Partnership. In addition,
the Partnership has not paid and does not propose to pay any options, warrants
or rights to the Officers and Directors of the General Partner. There exists no
remuneration plan or arrangement with any Officer or Director of the General
Partner resulting from resignation, retirement or any other termination. See
Note 7 of the Notes to Financial Statements included in Item 8 of this report
for a description of the remuneration paid by the Partnership to the General
Partner and its affiliates.
Item 12. Security Ownership of Certain Beneficial Owners and
Management
By virtue of its organization as a limited partnership, the Partnership has
outstanding no securities possessing traditional voting rights. However, as
provided for in Section 13.2 of the Agreement of Limited Partnership (subject to
Section 13.3), a majority in interest of the Limited Partners have voting rights
with respect to:
1. Amendment of the Limited Partnership Agreement.
2. Termination of the Partnership.
3. Removal of the General Partner.
4. Approval or disapproval of the sale of substantially all the
assets of the Partnership if such sale occurs prior to February 22,
1997.
No person or group is known by the General Partner to own beneficially more than
5% of the Partnership's outstanding Limited Partnership Units as of December 31,
2000.
Item 13. Certain Relationships and Related Transactions
An affiliate of the General Partner also acted as General Partner for CSA Income
Fund Limited Partnership III, which Partnership completed the wind-up of its
affairs as of September 30, 1999.
PART IV
Item 14. Exhibits, Financial Statements, Schedules and Reports
on Form 8-K
(a) (1) Financial Statements - See accompanying Index to Financial
Statements - Item 8.
(2) Financial Statement Schedules - All schedules have been
omitted as not required, not applicable or the information
required to be shown therein is included in the Financial
Statements and related notes.
(3) Exhibits Index
Except as set forth below, all exhibits to Form 10-K, as set forth in
item 601 of Regulation S-K are not applicable.
Page Number or
Exhibit Incorporated by
Number Description Reference
4.1 Agreement of Limited Partnership *
4.2 Subscription Agreement **
4.3 Certificate of Limited Partnership and ***
Agreement of Limited Partnership dated
April 8, 1988
4.4 First Amended and Restated Certificate ****
of Limited Partnership and Agreement
of Limited Partnership dated June 22,
1988
10.1 Escrow Agreement ***
12.0 First Amendment to Agreement of Limited
Partnership *****
27.1 Financial Data Schedule
* Included as Exhibit A to Amendment No. 1 to Form S-1,
Registration Statement No. 0-19939 filed with the Securities
and Exchange Commission on June 23, 1988.
** Included as Exhibit C to Amendment No. 1 to Form S-1 to
Registration Statement No. 0-19939 filed with the Securities and
Exchange Commission on June 23, 1988.
*** Included with the Exhibit Volume to Form S-1, Registration
Statement No. 0-19939 filed with the Securities and Exchange
Commission on April 15, 1988.
**** Included with the Exhibit Volume to Amendment No. 1 to Form S-1,
Registration Statement No. 0-19939 filed with the Securities and
Exchange Commission on June 23, 1988.
***** Included in Consent Statement filed on August 3, 1994.
(b) Reports on Form 8-K: There were no reports filed during the
fourth quarter of 2000.
Signatures
Pursuant to the requirements of Section 13 or 15(d) 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:
J. Frank Keohane, President
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.
By its General Partner,
CSA Lease Funds, Inc.
Date:
J. Frank Keohane
President & Director
Principal Executive Officer
Date:
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer