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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, 2002
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,
2002 2001
Assets
Cash and cash equivalents $ 2,605,580 $ 1,999,033
Short term investment - 2,124,290
Rentals receivable 16,723 195,805
Accounts receivable - affiliates - 3,950
Rental equipment, at cost 11,819,984 18,678,320
Less accumulated depreciation (11,462,423) (17,550,682)
Net rental equipment 357,561 1,127,638
Total assets $ 2,979,864 $ 5,450,716
Liabilities and partners' capital
Accrued management fees $ 15,728 $ 36,250
Accounts payable and accrued expenses 14,293 16,000
Deferred income 21,917 88,784
Notes payable 241,756 316,992
Total liabilities 293,694 458,026
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 435,819 177,549
Cumulative cash distributions (515,379) (484,665)
(78,560) (306,116)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 7,071,237 6,564,657
Cumulative cash distributions (50,507,546) (47,466,890)
2,764,730 5,298,806
Total partners' capital 2,686,170 4,992,690
Total liabilities and
partners' capital $ 2,979,864 $ 5,450,716
CSA INCOME FUND IV LIMITED PARTNERSHIP
UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX
MONTH PERIODS ENDED JUNE 30, 2002 AND 2001
Three Months Six Months
June 30, June 30,
2002 2001 2002 2001
Revenues:
Rental income $ 432,965 $ 1,747,390 $ 1,088,045 $ 3,878,892
Interest income 18,510 87,673 77,217 122,414
Gain on sale
of equipment 181,657 28,829 258,270 93,778
Net gain (loss) on
foreign currency 48,302 2,179 31,318 (66,127)
Total revenues 681,434 1,866,071 1,454,850 4,028,957
Costs and expenses:
Depreciation 175,960 1,243,324 451,202 2,963,127
Interest 4,575 17,737 9,790 59,950
Management fees 24,132 90,150 57,065 201,564
General and
administrative 88,905 88,444 171,943 181,712
Total expenses 293,572 1,439,655 690,000 3,406,353
Net income $ 387,862 $ 426,416 $ 764,850 $ 622,604
Net income allocation:
General Partner $ 181,657 $ 28,829 $ 258,270 $ 93,778
Limited Partners 206,205 397,587 506,580 528,826
$ 387,862 $ 426,416 $ 764,850 $ 622,604
Net income per
weighted average
Limited Partnership
Unit $ 0.41 $ 0.78 $ 1.00 $ 1.04
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, 2002 AND 2001
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Cash flows from
operations:
Cash received from
rental of
equipment $ 472,986 $1,752,697 $1,235,528 $3,839,623
Cash paid for
operating and
management expenses (109,300) (202,425) (251,237) (482,429)
Interest paid (4,575) (17,737) (9,790) (59,950)
Interest received 18,510 87,673 77,217 122,414
Net cash from
operations 377,621 1,620,208 1,051,718 3,419,658
Cash flow from investments:
Short term investment - 84,067 2,124,290 (3,415,933)
Sale of equipment 404,881 538,638 577,145 1,302,359
Net cash from (used
for) investments 404,881 622,705 2,701,435 (2,113,574)
Cash flows from financing:
Repayment of notes
payable (37,939) (696,325) ( 75,236) (1,796,033)
Payment of cash
distributions (1,535,685) (1,279,735) (3,071,370) (2,559,472)
Net cash used
for financing (1,573,624) (1,976,060) (3,146,606) (4,355,505)
Net change in cash and
cash equivalents (791,122) 266,853 606,547 (3,049,421)
Cash and cash equivalents
at beginning of period 3,396,702 172,336 1,999,033 3,488,610
Cash and cash equivalents
at end of period $2,605,580 $ 439,189 $2,605,580 $ 439,189
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, 2001.
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, 2002 and the results of operations and cash
flows for the three and six month periods ended June 30, 2002 and
June 30, 2001.
CSA INCOME FUND IV LIMITED PARTNERSHIP
GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental income was $432,965 and $1,747,390 and net income was $387,862 and
$426,416 for the quarters ended June 30, 2002 and 2001, respectively.
For the six months ended June 30, 2002 and 2001, Rental income was
$1,088,045 and $3,878,892, and net income was $764,850 and $622,604. The
decrease in net income for the quarter ended June 30, 2002 was primarily due
to lease expirations as the partnership approaches wind-up. The increase in
net income for the six months ended June 30, 2002 was primarily due
to lower depreciation expense recorded of $471,202 as compared to $2,963,127
for the same period in 2001. The depreciation expense is significantly lower
in 2002 primarily due to a majority of the remaining leases in the
Partnership's portfolio being nearly or fully depreciated.
The Partnership generated $782,502 in cash flow from operations and from the
sale of equipment during the three months ended June 30, 2002. The Partnership
utilized these funds and cash on hand to reduce outstanding notes payable by
$37,939 and made cash distributions to the partners of $1,535,685.
The Partnership paid distributions of $1.00 per Limited Partnership unit on
the April 15th, May 15th, and June 14th 2002.
To date, the Partnership has made cash distributions to the Limited Partners
ranging from 88% to 110% 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.
As noted previously, the General Partner of CSA Income Fund IV Limited
Partnership is in the process of completing the wind-up of the
Partnership. In finalizing the sale of the remaining Partnership
assets certain Partnership aircraft engines, are requiring additional
General Partner effort in order to maximize the value of these assets to
the Limited Partners. As soon as the remarketing of these Partnership assets
has been completed, the Partnership will make a Final Distribution to the
Limited Partners.
GENERAL PARTNER'S DISCUSSION OF OPERATIONS (continued)
In accordance with the Partnership Agreement, pursuant to section 8.3 (c),
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
of such partner; and secondly, 99% to the Limited Partners and 1% to
the General Partner. Therefore, certain gains on the disposition of
partnership assets were allocated during the first two quarters of 2002
and 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 2002.
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
J. Frank Keohane
President
Principal Executive Officer
Date:
Richard P. Timmons
Corporate Controller
Principal Accounting and
Finance Officer
Form 10-Q page 7