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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 September 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:
ITEM 1. - FINANCIAL INFORMATION
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF FINANCIAL POSITION AS OF
(Unaudited)
September 30, December 31,
2002 2001
Assets
Cash and cash equivalents $ 1,445,781 $ 1,999,033
Short term investment - 2,124,290
Rentals receivable 1,458 195,805
Remarketing receivable 1,451 -
Accounts receivable - affiliates 41,527 3,950
Rental equipment, at cost 11,059,729 18,678,320
Less accumulated depreciation (10,834,244) (17,550,682)
Net rental equipment 225,485 1,127,638
Total assets $ 1,715,702 $ 5,450,716
Liabilities and partners' capital
Accrued management fees $ 14,217 $ 36,250
Accounts payable 18,120 16,000
Deferred income 25,374 88,784
Notes payable 203,164 316,992
Total liabilities 260,875 458,026
Partners' capital:
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 517,185 177,549
Cumulative cash distributions (530,736) (484,665)
(12,551) (306,116)
Limited Partners (506,776 units):
Capital contributions,
net of offering costs 46,201,039 46,201,039
Cumulative net income 7,294,213 6,564,657
Cumulative cash distributions (52,027,874) (47,466,890)
1,467,378 5,298,806
Total partners' capital 1,454,827 4,992,690
Total liabilities and
partners' capital $ 1,715,702 $ 5,450,716
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE
MONTH PERIODS ENDED SEPTEMBER 30, 2002 AND 2001
Three Months Nine Months
September 30, September 30,
2002 2001 2002 2001
Revenues:
Rental income $ 389,766 $ 1,654,356 $ 1,477,811 $5,533,248
Interest income 11,479 66,272 88,696 188,686
Gain on sale
of equipment 81,366 25,123 339,636 118,901
Net gain (loss) on
foreign currency 86,172 (3,832) 117,490 (69,959)
Total revenues 568,783 1,741,919 2,023,633 5,770,876
Costs and expenses:
Depreciation 159,019 1,309,727 610,221 4,272,854
Interest 3,921 8,563 13,711 68,513
Management fees 19,488 84,499 76,553 286,063
General and
administrative 82,013 84,167 253,956 265,879
Total expenses 264,441 1,486,956 954,441 4,893,309
Net income $ 304,342 $ 254,963 $1,069,192 $ 877,567
Net income allocation:
General Partner $ 81,366 $ 25,123 $ 339,636 $ 118,901
Limited Partners 222,976 229,840 729,556 758,666
$ 304,342 $ 254,963 $1,069,192 $ 877,567
Net income per
weighted average
Limited Partnership
Unit $ 0.44 $ 0.46 $ 1.44 $ 1.50
Number of weighted
average Limited
Partnership Units 506,776 506,776 506,776 506,776
CSA INCOME FUND IV LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2002 AND 2001
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Cash flows from
operations:
Cash received from
rental of equipment $ 453,133 $ 1,717,213 $ 1,688,661 $5,556,836
Cash paid for
operating and
management expenses (99,185) (165,505) (350,422) (647,934)
Interest paid (3,921) (8,563) (13,711) (68,513)
Interest received 11,479 66,272 88,696 188,686
Net cash from
operations 361,506 1,609,417 1,413,224 5,029,075
Cash flow from investments:
Short term investment - 655,149 2,124,290 (2,760,784)
Sale of equipment 52,972 297,065 630,117 1,599,424
Net cash from (used for)
investments 52,972 952,214 2,754,407 (1,161,360)
Cash flows from financing:
Repayment of notes
payable (38,592) (131,429) (113,828) (1,927,462)
Payment of cash
distributions (1,535,685) (1,279,735) (4,607,055) (3,839,207)
Net cash used
for financing (1,574,277) (1,411,164) (4,720,883) (5,766,669)
Net change in cash and
cash equivalents (1,159,799) 1,150,467 (553,252) (1,898,954)
Cash and cash equivalents
at beginning of
period 2,605,580 439,189 1,999,033 3,488,610
Cash and cash
equivalents
at end of period $1,445,781 $1,589,656 $1,445,781 $1,589,656
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 September 30, 2002 and the results of
operations and cash flows for the three and nine month periods ended
September 30, 2002 and September 30, 2001.
CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
ITEM 2. - GENERAL PARTNER'S DISCUSSION OF OPERATIONS
Rental Income was $389,766 and $1,654,356 and Net Income was
$304,342 and $254,963 for the quarters ended September 30, 2002
and 2001, respectively. For the nine months ended September 30, 2002
and 2001, Rental Income was $1,477,811 and $5,533,248, and Net Income
was $1,069,192 and $877,567, respectively. The decrease in Rental Income
was due to lease expirations as the partnership approaches wind-up. The
increase in Net Income was primarily due to decreases in interest and
management fee expense on equipment leases that have expired, as well
as, decreased depreciation expense on leases that have been extended
or are paying on a month to month basis. The Partnership also recorded
a gain on foreign currency of $86,172 in the third quarter of 2002 as
compared to a loss of 3,832 in the prior year.
During the three months ended September 30, 2002, the Partnership
generated $414,478 in cash flow from operations and from the sale of
equipment. The Partnership utilized cash to reduce outstanding notes
payable by $38,592 and make cash distributions to the partners of $1,535,685.
The Partnership paid distributions of $1.00 per Limited Partnership unit on
July 15th, August 15th, and September 13th, 2002.
The General Partner will now complete the wind-up of the Partnership with a
final distribution on December 13th 2002. The December final distribution
will be approximately $9.00-$10.00 per unit.
The Limited Partners will receive their final Partnership K-1 package in
early March 2003.
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 three quarters of 2002
and 2001 to the General Partner to reduce its Capital Account negative
balance.
CSA INCOME FUND IV LIMITED PARTNERSHIP
FORM 10-Q
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Not Applicable
Item 4. CONTROLS AND PROCEDURES
The General Partner has evaluated the Partnership's disclosure controls
and procedures. Based on that evaluation, it was determined that
the Partnership's disclosure controls and procedures are effective in
ensuring information required to be disclosed by the Partnership in its
Exchange Act Reports is accumulated and communicated to the
Partnership's management as appropriate to allow timely decisions
regarding required disclosure.
The General Partner has also evaluated the Partnership's internal
control structure. Based on that evaluation, it was determined that there
were no significant changes in the Partnership's internal controls or in
other factors that could affect these controls subsequent to the date
of the evaluation, including any corrective action with regard to
significant deficiencies and material weaknesses.
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 third 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
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