TEXTAINER FINANCIAL SERVICES CORPORATION
650 California Street, 16th Floor
San Francisco, CA 94108
March 28, 2002
Securities and Exchange Commission
Washington, DC 20549
Ladies & Gentlemen:
Pursuant to the requirements of the Securities Exchange Act of 1934, we are
submitting herewith for filing on behalf of Textainer Equipment Income Fund IV,
L.P. (the "Partnership") the Partnership's Annual Report on Form 10-K for the
fiscal year ended December 31, 2001.
The financial statements included in the enclosed Annual Report on Form 10-K do
not reflect a change from the preceding year in any accounting principles or
practices, or in the method of applying any such principles or practices.
This filing is being effected by direct transmission to the Commission's EDGAR
System.
Sincerely,
Nadine Forsman
Controller
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2001
Commission file number 0-21228
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
----------------------------------------
(Exact name of Registrant as specified in its charter)
California 94-3147432
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
650 California Street, 16th Floor, San Francisco, CA 94108
(Address of Principal Executive Offices) (ZIP Code)
(415) 434-0551
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
NONE
Securities registered pursuant to Section 12(g) of the Act:
LIMITED PARTNER INTERESTS
(Title of Class)
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 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.
[ X ]
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 ]
State the aggregate market value of the voting stock held by nonaffiliates of
the Registrant. The aggregate market value shall be computed by reference to the
price at which the stock was sold, or the average bid and ask prices of such
stock, as of a specified date within 60 days prior to the date of the filing.
Not Applicable.
- --------------
Documents Incorporated by Reference
The Registrant's Prospectus as contained in Pre-Effective Amendment No. 2 to the
Registrant's Registration Statement, as filed with the Commission on April 10,
1992, as supplemented by Post-Effective Amendment No. 3 filed under The
Securities Act of 1933 on May 25, 1993 and as supplemented by Supplement No. 8
as filed under Rule 424(b) of the Securities Act of 1933 on March 1, 1994.
PART I
ITEM 1. DESCRIPTION OF BUSINESS
For more detailed information about the Registrant's business, see "Business of
the Partnership" in the Registrant's Prospectus as supplemented.
(a) General Development of Business
The Registrant is a California Limited Partnership formed on
October 30, 1991 to purchase, own, operate, lease, and sell
equipment used in the containerized cargo shipping industry. The
Registrant commenced offering units representing limited
partnership interests (Units) to the public on April 30, 1992 in
accordance with its Registration Statement and ceased to offer
such Units as of April 30, 1994. The Registrant raised a total of
$136,918,060 from the offering and invested a substantial portion
of the money raised in equipment. The Registrant has since
engaged in leasing this and other equipment in the international
shipping industry.
See Item 10 herein for a description of the Registrant's General
Partners. See Item 7 herein for a description of current market
conditions affecting the Registrant's business.
(b) Financial Information About Industry Segments
Inapplicable.
(c) Narrative Description of Business
(c)(1)(i) A container leasing company generally, and the Registrant
specifically, is an operating business comparable to a
rental car business. A customer can lease a car from a bank
leasing department for a monthly charge which represents the cost
of the car, plus interest, amortized over the term of the lease;
or the customer can rent the same car from a rental car company
at a much higher daily lease rate. The customer is willing to pay
the higher daily rate for the convenience and value-added
features provided by the rental car company, the most important
of which is the ability to pick up the car where it is most
convenient, use it for the desired period of time, and then drop
it off at a location convenient to the customer. Rental car
companies compete with one another on the basis of lease rates,
availability of cars, and the provision of additional services.
They generate revenues by maintaining the highest lease rates and
the highest utilization factors that market conditions will
allow, and by augmenting this income with proceeds from sales of
insurance, drop-off fees, and other special charges. A large
percentage of lease revenues earned by car rental companies are
generated under corporate rate agreements wherein, for a stated
period of time, employees of a participating corporation can rent
cars at specific terms, conditions and rental rates.
Container leasing companies and the Registrant operate in a
similar manner by owning a worldwide fleet of new and used
transportation containers and leasing these containers to
international shipping companies hauling various types of goods
among numerous trade routes. All lessees pay a daily rental rate
and in certain markets may pay special handling fees and/or
drop-off charges. In addition to these fees and harges, a lessee
must either provide physical damage and liability insurance or
purchase a damage waiver from the Registrant, in which case the
Registrant agrees to pay the cost of repairing certain physical
damage to containers. Container leasing companies compete with
one another on the basis of lease rates, fees charged, services
provided and availability of equipment. To ensure the
availability of equipment to its customers, container leasing
companies and the Registrant may pay to reposition containers
from low demand locations to higher demand locations. By
maintaining the highest lease rates and the highest equipment
utilization factors allowed by market conditions, the Registrant
attempts to generate revenue and profit.
The majority of the Registrant's equipment is leased under master
leases, which are comparable to the corporate rate agreements
used by rental car companies. The master leases provide that the
lessee, for a specified period of time, may rent containers at
specific terms, conditions and rental rates. Although the terms
of the master lease governing each container under lease do not
vary, the number of containers in use can vary from time to time
within the term of the master lease. The terms and conditions of
the master lease provide that the lessee pays a daily rental rate
for the entire time the container is in his possession (whether
or not he is actively using it), is responsible for any damage,
and must insure the container against liabilities. Some of the
Partnership's equipment is leased under long-term lease
agreements. Unlike master lease agreements, long-term lease
agreements provide for containers to be leased for periods of
between three to five years. Such leases are generally cancelable
with a penalty at the end of each twelve-month period. Under
direct finance leases, the containers are usually leased from the
Partnership for the remainder of the container's useful life with
a purchase option at the end of the lease term. Direct finance
leases currently cover a minority of the Partnership's equipment.
For a more detailed discussion of the leases for the Registrant's
equipment, see "Leasing Policy" under "Business of the
Partnership" in the Registrant's Prospectus as supplemented. The
Registrant also sells containers in the course of its business as
opportunities arise, at the end of the container's useful life or
if market and economic considerations indicated that a sale would
be beneficial. See Item 7 herein and "Business of the
Partnership" in Registrant's Prospectus, as supplemented.
(c)(1)(ii) Inapplicable.
(c)(1)(iii) Inapplicable.
(c)(1)(iv) Inapplicable.
(c)(1)(v) Inapplicable.
(c)(1)(vi) Inapplicable.
(c)(1)(vii) No single lessee generated lease revenue for the years ended
December 31, 2001, 2000 and 1999 which was 10% or more of the
total revenue of the Registrant.
(c)(1)(viii) Inapplicable.
(c)(1)(ix) Inapplicable.
(c)(1)(x) There are approximately 80 container leasing companies of which
the top ten control approximately 88% of the total
equipment held by all container leasing companies. The top two
container leasing companies combined control approximately 31% of
the total equipment held by all container leasing companies.
Textainer Equipment Management Limited, an Associate General
Partner of the Registrant and the manager of its marine container
equipment, is the third largest container leasing company and
manages approximately 13% of the equipment held by all container
leasing companies. The customers for leased containers are
primarily international shipping lines. The Registrant alone is
not a material participant in the worldwide container leasing
market. The principal methods of competition are price,
availability and the provision of worldwide service to the
international shipping community. Competition in the container
leasing market has increased over the past few years. Since 1996,
shipping alliances and other operational consolidations among
shipping lines have allowed shipping lines to begin operating
with fewer containers, thereby decreasing the demand for leased
containers and allowing lessees to gain concessions from lessors
about price, special charges or credits and, in certain markets,
the age specification of the containers rented. Furthermore,
primarily as a result of lower new container prices and low
interest rates, shipping lines now own, rather than lease, a
higher percentage of containers. The decrease in demand from
shipping lines, along with the entry of new leasing company
competitors offering low container rental rates, has increased
competition among container lessors such as the Registrant.
(c)(1)(xi) Inapplicable.
(c)(1)(xii) Inapplicable.
(c)(1)(xiii) The Registrant has no employees. Textainer Financial Services
Corporation (TFS), a wholly owned subsidiary of Textainer
Capital Corporation (TCC), the Managing General Partner
of the Registrant, is responsible for the overall management of
the business of the Registrant and at December 31, 2001 had 4
employees. Textainer Equipment Management Limited (TEM), an
Associate General Partner, is responsible for the management of
the leasing operations of the Registrant and at December 31, 2001
had a total of 157 employees.
(d) Financial Information about Foreign and Domestic Operations
and ExportSales.
The Registrant is involved in the leasing of shipping containers
to international shipping companies for use in world trade and
approximately 12%, 14% and 15% of the Registrant's rental revenue
during the years ended December 31, 2001, 2000 and 1999,
respectively, was derived from operations sourced or terminated
domestically. These percentages do not reflect the proportion of
the Partnership's income from operations generated domestically
or in domestic waterways. Substantially all of the Partnership's
income from operations is derived from assets employed in foreign
operations. See "Business of the Partnership" in the Registrant's
Prospectus, as supplemented, and for a discussion of the risks of
leasing containers for use in world trade, see "Risk Factors and
Forward-Looking Statements" in Item 7 herein.
ITEM 2. PROPERTIES
As of December 31, 2001, the Registrant owned the following types and quantities
of equipment:
20-foot standard dry freight containers 11,208
40-foot standard dry freight containers 13,458
40-foot high cube dry freight containers 6,745
------
31,411
======
During December 2001, approximately 53% of these containers were on lease to
international shipping companies, and the balance were being stored primarily at
a large number of storage depots located worldwide. The Partnership sells
containers when (i) a container reaches the end of its useful life or (ii) an
analysis indicates that the sale is warranted based on existing market
conditions and the container's age, location and condition. At December 31,
2001, approximately 6% of the Partnership's off-lease equipment had been
identified as being for sale.
For information about the Registrant's property, see "Business of the
Partnership" and "Risk Factors" in the Registrant's Prospectus, as supplemented.
See also Item 7, "Results of Operations" regarding current and possible future
write-downs of some of the Registrant's property.
ITEM 3. LEGAL PROCEEDINGS
The Registrant is not subject to any legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
Inapplicable.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
ITEM 201:
(a) Market Information.
(a)(1)(i) The Registrant's limited partnership Units are not publicly
traded and there is no established trading market for
such Units. The Registrant has a program whereby limited partners
may redeem Units for a specified redemption price. The program
operates only when the Managing General Partner determines, among
other matters, that payment for redeemed units will not impair
the capital or operations of the Registrant.
(a)(1)(ii) Inapplicable.
(a)(1)(iii) Inapplicable.
(a)(1)(iv) Inapplicable.
(a)(1)(v) Inapplicable.
(a)(2) Inapplicable.
(b) Holders.
(b)(1) As of January 1, 2002, there were 7,919 holders of record
of limited partnership interests in the Registrant.
(b)(2) Inapplicable.
(c) Dividends.
Inapplicable.
At December 31, 2001 the Registrant was paying distributions at an annualized
rate equal to 5% of a Unit's initial cost, or $1.00 per Unit per year. For
information about the amount of distributions paid during the five most recent
fiscal years, see Item 6, "Selected Financial Data." Distributions are made
monthly by the Registrant to its limited partners.
ITEM 701: Inapplicable.
ITEM 6. SELECTED FINANCIAL DATA
(Amounts in thousands except for per unit amounts)
Years Ended December 31,
------------------------------------------------------------------------
2001 2000 1999 1998 1997
---- ---- ---- ---- ----
Rental income........................... $ 13,693 $ 17,525 $ 17,256 $ 21,505 $ 21,297
(Loss) income from operations........... $ (2,124) $ 2,961 $ 434 $ 4,916 $ 5,684
Net (loss) earnings..................... $ (2,032) $ 3,182 $ 567 $ 5,011 $ 5,750
Net (loss) earnings per unit of
limited partner interest.............. $ (0.32) $ 0.45 $ 0.07 $ 0.72 $ 0.82
Distributions per unit of
limited partner interest.............. $ 1.23 $ 1.40 $ 1.68 $ 1.81 $ 1.90
Distributions per unit of limited
partner interest representing
a return of capital.................. $ 1.23 $ 0.95 $ 1.61 $ 1.09 $ 1.08
Total assets............................ $ 58,898 $ 70,983 $ 76,714 $ 87,508 $ 96,204
Intercompany borrowings for
container purchases.................. $ - $ - $ - $ - $ 826
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(Amounts in thousands except for unit and per unit amounts)
The Financial Statements contain information which will assist in evaluating the
financial condition of the Partnership for the years ended December 31, 2001,
2000 and 1999. Please refer to the Financial Statements and Notes thereto in
connection with the following discussion.
Textainer Financial Services Corporation (TFS) is the Managing General Partner
of the Partnership and is a wholly-owned subsidiary of Textainer Capital
Corporation (TCC). Textainer Equipment Management Limited (TEM) and Textainer
Limited (TL) are Associate General Partners of the Partnership. The General
Partners manage and control the affairs of the Partnership.
Liquidity and Capital Resources
From May 1, 1992 until April 30, 1994, the Partnership offered limited
partnership interests to the public. The Partnership received its minimum
subscription amount of $5,000 on June 11, 1992 and on April 30, 1994 the
Partnership had received a total subscription amount of $136,918.
The Partnership invests working capital, cash flow from operations prior to its
distribution to the partners and proceeds from container sales that have not
been used to purchase containers in short-term, liquid investments. Rental
income is the Partnership's principal source of liquidity and provides a major
source of funds for distributions. Rental income has been adversely affected by
current market conditions for leased containers, and these market conditions may
continue or worsen. Market conditions are discussed more fully in "Results of
Operations." The Partnership's cash is affected by cash provided by or used in
operating, investing and financing activities. These activities are discussed in
detail below.
Limited partners are currently receiving monthly distributions in an annualized
amount equal to 5% of their original investment. During the year ended December
31, 2001, the Partnership declared cash distributions to limited partners
pertaining to the period from December 2000 through November 2001, in the amount
of $8,290. On a cash basis, $6,967 of these distributions was from current year
operating activities and the remainder was from cash provided by previous years'
operations that had not been distributed or used to purchase containers or
redeem units. On a financial statement basis, all of these distributions were a
return of capital.
From time to time, the Partnership redeems units from limited partners for a
specified redemption value, which is set by formula. Up to 2% of the
Partnership's outstanding units may be redeemed each year, although the 2% limit
may be exceeded at the Managing General Partner's discretion. All redemptions
are subject to the Managing General Partner's good faith determination that
payment for the redeemed units will not (i) cause the Partnership to be taxed as
a corporation, (ii) impair the capital or operations of the Partnership, or
(iii) impair the ability of the Partnership to pay distributions in accordance
with its distribution policy. During the year ended December 31, 2001, the
Partnership redeemed 28,162 units for a total dollar amount of $234. The
Partnership used cash flow from operations to pay for the redeemed units.
At December 31, 2001, the Partnership had no commitments to purchase containers.
Net cash provided by operating activities for the years ended December 31, 2001
and 2000 was $7,288 and $10,964, respectively. The decrease of $3,676, or 34%,
was primarily attributable to the decrease in net earnings (loss), adjusted for
non-cash transactions and fluctuations in accounts payable and accrued
liabilities and gross accounts receivable. The decrease was partially offset by
the fluctuations in due from affiliates, net. Net earnings (loss), adjusted for
non-cash transactions, decreased primarily due to the decrease in rental income
and increase in direct container expenses. These fluctuations are discussed more
fully in "Results of Operations". The fluctuation in accounts payable and
accrued liabilities resulted from timing differences in the payment of expenses
and fees as well as fluctuations in these amounts. The decrease in gross
accounts receivable of $816 during the year ended December 31, 2001 was
primarily due to the decrease in rental income. The decrease in gross accounts
receivable of $1,047 during the comparable period in 2000 was primarily due to
the decrease in the average collection period of accounts receivable. The
fluctuations in due from affiliates, net, resulted from timing differences in
payment of expenses, fees and distributions and the remittance of net rental
revenues and sales proceeds, as well as fluctuations in these amounts.
For the year ended December 31, 2001, net cash provided by investing activities
(the purchase and sale of containers) was $22 compared to net cash used in
investing activities of $403 for the comparable period in 2000. The fluctuation
of $425 was due to the decrease in cash used for container purchases, partially
offset by the decrease in proceeds from container sales. Cash used for container
purchases decreased due to the Partnership purchasing substantially fewer
containers at a lower average cost, offset by timing differences in the accrual
and payment of these purchases. The Partnership sold more containers in low
demand locations during the year ended December 31, 2001 than in the same period
in 2000, but a decrease in the average sales price and timing differences in the
accrual and receipt of these proceeds resulted in the decrease in total proceeds
from container sales between the periods. The sales prices received on container
sales continued to decrease as a result of current market conditions, which have
adversely affected the value of used containers. Until market conditions improve
in certain low demand locations, the Partnership plans to continue selling some
of its containers that are off-lease in these locations. The number of
containers sold, both in low demand locations and elsewhere, as well as the
average sales price, will affect how much the Partnership can reinvest in new
containers.
Consistent with its investment objectives and subject to its distribution
policy, the Partnership intends to continue to reinvest both cash from
operations available for reinvestment and all, or a significant amount of, the
proceeds from container sales in additional containers. Cash from operations
available for reinvestment is generally equal to cash provided by operating
activities, less distributions and redemptions paid, which are subject to the
General Partners' authority to set these amounts (and modify reserves and
working capital), as provided in the Partnership Agreement. The amount of sales
proceeds will fluctuate based on the number of containers sold and the sales
price received. The Partnership sells containers when (i) a container reaches
the end of its useful life or (ii) an analysis indicates that the sale is
warranted based on existing market conditions and the container's age, location
and condition.
Both cash from operations available for reinvestment and sales proceeds have
been adversely affected by market conditions. These market conditions have
resulted in a slower than anticipated rate of reinvestment. Market conditions
are discussed more fully under "Results of Operations." A slower rate of
reinvestment will, over time, affect the size of the Partnership's container
fleet. Furthermore, even with reinvestment, the Partnership is not likely to be
able to replace all the containers it sells, since new container prices are
usually higher than the average sales price for a used container, and the
majority of cash available for reinvestment is from sales proceeds.
Results of Operations
The Partnership's income from operations, which consists primarily of rental
income less costs and expenses (including container depreciation, direct
container expenses, management fees, and reimbursement of administrative
expenses) was directly related to the size of the container fleet during the
years ended December 31, 2001, 2000 and 1999, as well as certain other factors
as discussed below. The following is a summary of the container fleet (in units)
available for lease during those periods:
2001 2000 1999
---- ---- ----
Beginning container fleet............... 33,062 32,876 34,661
Ending container fleet.................. 31,411 33,062 32,876
Average container fleet................. 32,237 32,969 33,769
The average container fleet decreased 2% from the years ended December 31, 2000
to 2001 and December 31, 1999 to 2000, primarily due to sales of containers.
Although, sales proceeds were used to purchase additional containers, fewer
containers were bought than sold as used container sales prices were lower than
new container prices. The Partnership's primary source of funds for container
purchases is these sales proceeds. The rate of decline in average fleet size may
fluctuate due to timing differences in the purchase and sale of containers and
fluctuations in container sale and purchase prices during each period.
As noted above, when containers are sold in the future, sales proceeds are not
likely to be sufficient to replace all of the containers sold, resulting in the
continuing decline in the average container fleet. This trend is expected to
continue. Other factors related to this trend are discussed above in "Liquidity
and Capital Resources".
Rental income and direct container expenses are also affected by the utilization
of the container fleet, which was 60%, 77% and 71% on average during the years
ended December 31, 2001, 2000 and 1999, respectively. The remaining container
fleet is off-lease and is being stored primarily at a large number of storage
depots. At December 31, 2001, the Partnership's off-lease containers (in units)
were located in the following locations:
America 3,296
Europe 2,070
Asia 8,783
------
Total off-lease containers 14,149
======
At December 31, 2001 approximately 6% of the Partnership's off-lease containers
had been specifically identified as for sale.
In addition to utilization, rental income is affected by daily rental rates,
which have decreased slightly between the periods.
The following is a comparative analysis of the results of operations for the
years ended December 31, 2001, 2000 and 1999.
The Partnership's (loss) income from operations for the years ending December
31, 2001 and 2000 was ($2,124) and $2,961, respectively, on rental income of
$13,693 and $17,525, respectively. The decrease in rental income of $3,832, or
22%, from the year ended December 31, 2000, to the comparable period in 2001 was
attributable to a decrease in container rental income, offset by an increase in
other rental income, which is discussed below. Income from container rentals,
the major component of total revenue, decreased $3,996, or 25%, primarily due to
the decreases in average on-hire utilization of 22%, average rental rates of 3%,
and average container fleet of 2%. The majority of the Partnership's rental
income was generated from leasing of the Partnership's containers under master
operating leases.
The Partnership's income from operations for the years ended December 31, 2000
and 1999 was $2,961 and $434 respectively, on rental income of $17,525 and
$17,256, respectively. The increase in rental income of $269, or 2%, from the
year ended December 31, 1999, to the comparable period in 2000 was attributable
to an increase in container rental income, offset by a decrease in other rental
income. Income from container rentals increased $620, or 4%, primarily due to
the increase in average on-hire utilization of 8%, offset by the decreases in
average rental rates of 3%, and the average container fleet of 2%.
In the fourth quarter of 2000, utilization began to decline and continued to
decline during 2001 and into the beginning of 2002. This decline was due to
lower overall demand by shipping lines for leased containers, which is primarily
a result of the worldwide economic slowdown. Two other factors are currently
reducing the demand for leased containers. Shipping lines have added larger
vessels to their fleets, which combined with lower cargo volume growth, has made
it easier for them to use otherwise empty vessel space to reposition their own
containers back to high demand locations. Additionally, in anticipation of the
delivery of these new, larger vessels, many shipping lines placed large orders
for new containers in 2000 and 2001, thus temporarily reducing their need to
lease containers. These orders for additional containers are part of a general
increase in vessel capacity for the shipping lines. This increase in vessel
capacity amounted to 12% in 2001. An additional increase in vessel capacity of
approximately 12% is expected in 2002, because the shipping lines placed orders
for additional ships before recognizing the slowdown in world trade. To the
extent that this increased vessel capacity remains underutilized, shipping lines
may seek to cut costs in order to sustain profits or reduce losses, which may
put further downward pressure on demand for containers.
As a result of the lower demand, the trade imbalance between Asia and North
America and Asia and Europe has eased slightly. Combined with the excess vessel
capacity, these factors have made it easier, although not necessarily less
expensive, to reposition containers. During the year ended December 31, 2001,
the Partnership was able to reposition newer containers from low demand
locations in North America and Europe to historically higher demand locations in
Asia. As a consequence, the build-up of containers in North America and Europe,
which persisted over the past several years, has eased slightly. For the number
of off-lease containers located in the lower demand locations of America and
Europe, see chart above.
Nevertheless, the Partnership continues to sell (rather than reposition) some
containers located in low demand locations. The decision to sell containers is
based on the current expectation that the economic benefit of selling these
containers is greater than the estimated economic benefit of continuing to own
these containers. The majority of the containers sold during the year ended
December 31, 2001 and 2000 were older containers. The expected economic benefit
of continuing to own these containers was significantly less than that of newer
containers. This was due to their shorter remaining marine life, the cost to
reposition them and the shipping lines' preference for leasing newer containers
when they have a choice.
Once the decision had been made to sell containers, the Partnership wrote down
the value of these specifically identified containers to their estimated fair
value, which was based on recent sales prices less cost of sales. Due to
unanticipated declines in container sales prices, the actual sales prices
received on some containers were lower than the estimates used for the
write-down, resulting in the Partnership incurring losses upon the sale of some
of these containers. Until market conditions improve, the Partnership may incur
further write-downs and/or losses on the sale of such containers. Should the
decline in economic value of continuing to own such containers turn out to be
permanent, the Partnership may be required to increase its depreciation rate or
write-down the value of some or all of its container rental equipment.
Despite the decline in demand for leased containers discussed above and the
decline in new container purchase prices, rental rates were comparable during
these periods. Until such time as the worldwide economies improve, particularly
those of the United States and Europe, and cargo volumes increase to the point
where this year's 12% increase in worldwide vessel capacity is absorbed, there
may be no significant improvements in utilization or rental rates.
The General Partners do not foresee material changes in existing market
conditions for the near term. Should there be a worldwide recession, demand for
leased containers could decline further and result in a decline in lease rates
and further declines in utilization and container sale prices, adversely
affecting the Partnership's operating results.
Other rental income consists of other lease-related items, primarily income from
charges to lessees for dropping off containers in surplus locations less credits
granted to lessees for leasing containers from surplus locations (location
income), income from charges to lessees for handling related to leasing and
returning containers (handling income) and income from charges to lessees for a
Damage Protection Plan (DPP). For the year ended December 31, 2001, other rental
income was $1,898, an increase of $164 from the equivalent period in 2000. The
increase was primarily due to the increase in location income of $311, offset by
the decease in handling income of $132. The increase in location income was
primarily due to (i) the decline in credits granted to lessees for picking up
containers from surplus locations as there were fewer lease-out opportunities
for which credits could be offered and (ii) the increase in charges to lessees
for dropping containers in certain locations. The decline in handling income was
primarily due to the decline in container movement, and was partially offset by
the increase in the average handling charge per container.
For the year ended December 31, 2000, other rental income was $1,734, a decrease
of $351 from the equivalent period in 1999. The decrease was primarily due to
decreases in location, DPP and handling income of $167, $123, and $60,
respectively. The decline in location income was due to a decrease in charges to
lessees for dropping off containers in certain locations, offset by a decrease
in credits granted to lessees for picking up containers from surplus locations.
The decline in DPP income was primarily due to a decrease in the average DPP
price charged per container. Handling income declined primarily due to the
decline in container movement.
Direct container expenses increased $613, or 13% from the year ended December
31, 2000, to the same period in 2001. The increase was primarily due to an
increase in storage expense of $1,250, offset by decreases in repositioning and
handling expenses of $428 and $123, respectively. Storage expense increased due
to the decline in average utilization noted above and a higher average storage
cost per container. Repositioning expense decreased due to a decrease in the
number of containers repositioned, and a decrease in the average cost to
reposition containers. Handling expense decreased due to the decrease in
container movement and a decrease in the average handling cost per container.
Direct container expenses decreased $855, or 15% from the year ended December
31, 1999, to the same period in 2000. The decrease was primarily due to declines
in storage, DPP and handling expenses of $691, $445 and $114, offset by the
increase in repositioning expense of $469. Storage expense declined due to the
improvement in utilization and a lower average storage cost per container. DPP
expense declined due to a decrease in the average repair cost per container.
Handling expense decreased due to the decrease in container movement and a lower
average handling cost per container. The increase in repositioning expense was
due to the increase in the average cost to reposition a container due to the
high demand for limited vessel capacity, offset by the decrease in the number of
containers repositioned.
Bad debt (benefit) expense was ($25), ($120) and $364 for the years ended
December 31, 2001, 2000 and 1999, respectively. The fluctuations in bad debt
benefit/expense reflect the required adjustment to the bad debt reserve and are
based on management's then current estimates of the portion of accounts
receivable that may not be collected, and which will not be covered by
insurance. These estimates are based primarily on management's current
assessment of the financial condition of the Partnership's lessees and their
ability to make their required payments. The benefits recorded during the years
ended December 31, 2001 and 2000 reflect lower reserve requirements from the
previous year and the expense recorded during the year ended December 31, 1999
reflects a greater reserve requirement from the previous year.
Depreciation expense decreased $115, or 2%, and $256, or 4%, from the years
ended December 31, 2000 to 2001, and December 31, 1999 to 2000, respectively.
These decreases were primarily due to the declines in the average fleet size.
New container prices steadily declined from 1995 through 1999. Although
container prices increased in 2000, these prices declined again in 2001. As a
result, the cost of new containers purchased in recent years is significantly
less than the average cost of containers purchased in prior years. The
Partnership evaluated the recoverability of the recorded amount of container
rental equipment at December 31, 2001 and 2000 for containers to be held for
continued use and determined that a reduction to the carrying value of these
containers was not required. The Partnership also evaluated the recoverability
of the recorded amount of containers identified for sale in the ordinary course
of business and determined that a reduction to the carrying value of these
containers was required. The Partnership wrote down the value of these
containers to their estimated fair value, which was based on recent sales prices
less cost to sell. During the years ended December 31, 2001, 2000 and 1999, the
Partnership recorded write-down expenses of $954, $249 and $475, respectively,
on 1,284, 344 and 746 containers identified as for sale and requiring a reserve.
At December 31, 2001 and 2000, the net book value of the 841 and 145 containers
identified as for sale was $1,416 and $259, respectively.
The Partnership sold 612 of these previously written down containers for a loss
of $39 during the year ended December 31, 2001, and sold 320 previously written
down containers for a loss of $9 during the same period in 2000. During the year
ended December 31, 1999, the Partnership sold 1,499 previously written down
containers for a loss of $193. The Partnership incurred losses on the sale of
some containers previously written down as the actual sales prices received on
these containers were lower than the estimates used for the write-downs,
primarily due to unexpected declines in container prices.
The Partnership also sold containers that had not been written down and recorded
losses of $466, $80 and $204 during the years ended December 31, 2001, 2000 and
1999, respectively.
As more containers are subsequently identified for sale or if container sales
prices decline, the Partnership may incur additional write-downs on containers
and/or may incur losses on the sale of containers. The Partnership will continue
to evaluate the recoverability of the recorded amount of container rental
equipment and cautions that a write-down of container rental equipment and/or an
increase in its depreciation rate may be required in future periods for some or
all of its container rental equipment.
Management fees to affiliates decreased $312 or 19% and $71 or 4%, from the
years ended December 31, 2000 to 2001 and December 31, 1999 to 2000,
respectively. The decreases were due to decreases in both equipment and
incentive management fees. Equipment management fees decreased due to the
decrease in rental income, upon which equipment management fees are primarily
based. These fees were approximately 7% of rental income for these periods.
Incentive management fees, which are based on the Partnership's limited and
general partner distributions made from cash from operations and partners'
capital decreased $59 and $73 from the years ended December 31, 2000 to 2001 and
December 31, 1999 to 2000, respectively. These decreases were due to (i)
decreases in the limited partner distributions percentages from 9% to 8% of
initial partners' capital in July 1999, from 8% to 7% of initial partners'
capital in October 1999 and from 7% to 5% of initial partners' capital in July
2001 and (ii) decreases in partners' capital due to redemptions of limited
partners units during the years ended December 31, 2001, 2000 and 1999.
General and administrative costs to affiliates decreased $147 or 17% and $43 or
5%, from the years ended December 31, 2000 to 2001, and December 31, 1999 to
2000, respectively. These decreases were primarily due to a decrease in the
allocation of overhead costs from TEM, as the Partnership represented a smaller
portion of the total fleet managed by TEM.
The Partnership Agreement provides for the ongoing payment to the General
Partners of the management fees and the reimbursement of the expenses discussed
above. Since these fees and expenses are established by the Agreement, they
cannot be considered the result of arms' length negotiations with third parties.
The Partnership Agreement was formulated at the Partnership's inception and was
part of the terms upon which the Partnership solicited investments from its
limited partners. The business purpose of paying the General Partners these fees
is to compensate the General Partners for the services they render to the
Partnership. Reimbursement for expenses is made to offset some of the costs
incurred by the General Partners in managing the Partnership and its container
fleet. More details about these fees and expenses are included in footnote 2 to
the Financial Statements.
Loss on sale of containers increased $416 from the year ended December 31, 2000
to the comparable period in 2001. The increase was primarily due to the
Partnership selling more containers at lower average sales prices during the
year ended December 31, 2001 than the comparable period in 2000.
Loss on sale of containers decreased from $397 during the year ended December
31, 1999 to $89 for the comparable period in 2000. The decrease was primarily
due to the Partnership selling fewer containers at a slightly higher average
sales price during the year ended December 31, 2000, than the same period in
1999. The decline in the number of container sold was primarily due to there
being fewer lower demand locations and fewer containers in these locations, the
latter resulting primarily from previous sales efforts.
Net earnings per limited partnership unit decreased from earnings of $0.45 to a
loss of $0.32 for the years ended December 31, 2000 and 2001, respectively,
reflecting the decrease in net earnings allocated to limited partners from
earnings of $3,082 to a loss of $2,119 respectively. Net earnings per limited
partnership unit increased from $0.07 to $0.45 from the year ended December 31,
1999 to 2000, respectively, reflecting the increase in net earnings allocated to
limited partners from $447 to $3,082, respectively. The allocation of net
earnings for the years ended December 31, 2001, 2000 and 1999, included a
special allocation of gross income of $107, $68 and $114, respectively, to the
General Partners in accordance with the Partnership Agreement.
Critical Accounting Policies and Estimates
The Partnership's discussion and analysis of its financial condition and results
of operations are based upon the Partnership's financial statements, which have
been prepared in accordance with accounting principles generally accepted in the
United States of America. Certain estimates and assumptions were made by the
Partnership's management that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. The Partnership's management evaluates its estimates on an
on-going basis, including those related to the container rental equipment,
accounts receivable and accruals.
These estimates are based on historical experience and on various other
assumptions that are believed to be reasonable under the circumstances, the
results of which form the basis for making judgments regarding the carrying
values of assets and liabilities. Actual results could differ from those
estimates under different assumptions or conditions.
The Partnership's management believes the following critical accounting policies
affect its more significant judgments and estimates used in the preparation of
its financial statements.
The Partnership maintains allowances for doubtful accounts for estimated losses
resulting from the inability of its lessees to make required payments. These
allowances are based on management's current assessment of the financial
condition of the Partnership's lessees and their ability to make their required
payments. If the financial condition of the Partnership's lessees were to
deteriorate, resulting in an impairment of their ability to make payments,
additional allowances may be required, which would adversely affect the
Partnership's operating results.
The Partnership depreciates its container rental equipment based on certain
estimates related to the container's useful life and salvage value. These
estimates are based upon assumptions about future demand for leased containers
and the estimated sales price at the end of the container's useful life. If
these estimates were subsequently revised based on permanent changes in the
container leasing market, the Partnership would revise its depreciation policy,
which could adversely affect the Partnership's operating results.
Additionally, the recoverability of the recorded amounts of containers is
evaluated to ensure that the recorded amount does not exceed the estimated fair
value of the containers. If it is determined that the recorded amount exceeds
the estimated fair value, the Partnership writes down the value of those
containers. In determining the estimated fair value, assumptions are made
regarding future demand and market conditions for leased containers as well as
for used containers and the sales prices for used containers. If actual market
conditions are less favorable than those projected or if actual sales prices are
lower than those estimated by the Partnership, additional write-downs may be
required. Any additional write-downs would adversely affect the Partnership's
operating results.
Accounting Pronouncement
In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 144, "Accounting for Impairment or
Disposal of Long-Lived Assets". SFAS No. 144 supercedes SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets to be Disposed of", and
elements of Accounting Principles Board Opinion 30, "Reporting the Results of
Operations - Reporting the Effects on Disposal of a Segment of a Business and
Extraordinary, Unusual or Infrequently Occurring Events and Transactions."
SFAS No. 144 establishes a single-accounting model for long-lived assets to be
disposed of while maintaining many of the provisions relating to impairment
testing and valuation. The Statement will be effective on January 1, 2002 and
the Partnership is currently assessing the impact adoption will have on the
financial condition and operating results of the Partnership.
Risk Factors and Forward Looking Statements
Although substantially all of the Partnership's income from operations is
derived from assets employed in foreign operations, virtually all of this income
is denominated in United States dollars. The Partnership's customers are
international shipping lines, which transport goods on international trade
routes. The domicile of the lessee is not indicative of where the lessee is
transporting the containers. The Partnership's business risk in its foreign
operations lies with the creditworthiness of the lessees, and the Partnership's
ability to keep its containers under lease, rather than the geographic location
of the containers or the domicile of the lessees. The containers are generally
operated on the international high seas rather than on domestic waterways. The
containers are subject to the risk of war or other political, economic or social
occurrence where the containers are used, which may result in the loss of
containers, which, in turn, may have a material impact on the Partnership's
results of operations and financial condition.
Other risks of the Partnership's leasing operations include competition, the
cost of repositioning containers after they come off-lease, the risk of an
uninsured loss, including bad debts, increases in maintenance expenses or other
costs of operating the containers, and the effect of world trade, industry
trends and/or general business and economic cycles on the Partnership's
operations. See "Risk Factors" in the Partnership's Prospectus, as supplemented,
for additional information on risks of the Partnership's business. See "Critical
Accounting Policies and Estimates" above for information on the Partnership's
critical accounting policies and how changes in those estimates could adversely
affect the Partnership's results of operations.
The foregoing includes forward-looking statements and predictions about possible
or future events, results of operations and financial condition. These
statements and predictions may prove to be inaccurate, because of the
assumptions made by the Partnership or the General Partners or the actual
development of future events. No assurance can be given that any of these
forward-looking statements or predictions will ultimately prove to be correct or
even substantially correct. The risks and uncertainties in these forward-looking
statements include, but are not limited to, changes in demand for leased
containers, changes in global business conditions and their effect on world
trade, future modifications in the way in which the Partnership's lessees
conduct their business or of the profitability of their business, increases or
decreases in new container prices or the availability of financing therefor,
alterations in the costs of maintaining and repairing used containers, increases
in competition, changes in the Partnership's ability to maintain insurance for
its containers and its operations, the effects of political conditions on
worldwide shipping and demand for global trade or of other general business and
economic cycles on the Partnership, as well as other risks detailed herein and
from time to time in the Partnership's filings with the Securities and Exchange
Commission. The Partnership does not undertake any obligation to update
forward-looking statements.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Inapplicable.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Attached pages 15 to 28
Independent Auditors' Report
----------------------------
The Partners
Textainer Equipment Income Fund IV, L.P.:
We have audited the accompanying balance sheets of Textainer Equipment Income
Fund IV, L.P. (a California limited partnership) as of December 31, 2001 and
2000, the related statements of operations, partners' capital and cash flows for
each of the years in the three-year period ended December 31, 2001. 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 Textainer Equipment Income Fund
IV, L.P. as of December 31, 2001 and 2000, and the results of its operations,
its partners' capital and its cash flows for each of the years in the three-year
period ended December 31, 2001 in conformity with accounting principles
generally accepted in the United States of America.
/s/ KPMG LLP
San Francisco, California
February 11, 2002
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Balance Sheets
December 31, 2001 and 2000
(Amounts in thousands)
- -----------------------------------------------------------------------------------------------------------------
2001 2000
--------------- ----------------
Assets
Container rental equipment, net of accumulated
depreciation of $53,901 (2000: $50,184) $ 53,612 $ 63,447
Cash 1,841 3,183
Accounts receivable, net of allowance
for doubtful accounts of $218 (2000: $323) 3,021 3,632
Due from affiliates, net (note 2) 406 704
Prepaid expenses 18 17
--------------- ----------------
$ 58,898 $ 70,983
=============== ================
Liabilities and Partners' Capital
Liabilities:
Accounts payable $ 690 $ 620
Accrued liabilities 264 417
Accrued damage protection plan costs (note 1(k)) 199 366
Warranty claims (note 1(l)) 293 354
Accrued recovery costs (note 1(j)) 226 219
Deferred quarterly distributions (note 1(g)) 81 121
Container purchases payable - 1,098
--------------- ----------------
Total liabilities 1,753 3,195
--------------- ----------------
Partners' capital:
General partners - -
Limited partners 57,145 67,788
--------------- ----------------
Total partners' capital 57,145 67,788
--------------- ----------------
$ 58,898 $ 70,983
=============== ================
See accompanying notes to financial statements
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Statements of Operations
Years ended December 31, 2001, 2000 and 1999
(Amounts in thousands except for unit and per unit amounts)
- ----------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
----------------- ----------------- -----------------
Rental income $ 13,693 $ 17,525 $ 17,256
----------------- ----------------- -----------------
Costs and expenses:
Direct container expenses 5,469 4,856 5,711
Bad debt (benefit) expense (25) (120) 364
Depreciation (note 1(e)) 6,669 6,784 7,040
Write-down of containers (note 1(e)) 954 249 475
Professional fees 32 60 70
Management fees to affiliates (note 2) 1,295 1,607 1,678
General and administrative costs to affiliates (note 2) 723 870 913
Other general and administrative costs 195 169 174
Loss on sale of containers 505 89 397
----------------- ----------------- -----------------
15,817 14,564 16,822
----------------- ----------------- -----------------
(Loss) income from operations (2,124) 2,961 434
----------------- ----------------- -----------------
Other income:
Interest income 92 221 133
----------------- ----------------- -----------------
92 221 133
----------------- ----------------- -----------------
Net (loss) earnings $ (2,032) $ 3,182 $ 567
================= ================= =================
Allocation of net (loss) earnings (note 1(g)):
General partners $ 87 $ 100 $ 120
Limited partners (2,119) 3,082 447
----------------- ----------------- -----------------
$ (2,032) $ 3,182 $ 567
================= ================= =================
Limited partners' per unit share
of net (loss) earnings $ (0.32) $ 0.45 $ 0.07
================= ================= =================
Limited partners' per unit share
of distributions $ 1.23 $ 1.40 $ 1.68
================= ================= =================
Weighted average number of limited
partnership units outstanding (note 1(m)) 6,718,741 6,775,430 6,793,790
================= ================= =================
See accompanying notes to financial statements
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Statements of Partners' Capital
Years ended December 31, 2001, 2000 and 1999
(Amounts in thousands)
- --------------------------------------------------------------------------------------------------------------------------
Partners' Capital
------------------------------------------------------
General Limited Total
-------------- -------------- ---------------
Balances at December 31, 1998 $ - $ 85,661 $ 85,661
Distributions (120) (11,437) (11,557)
Redemptions (note 1(n)) - (34) (34)
Net earnings 120 447 567
-------------- -------------- ---------------
Balances at December 31, 1999 - 74,637 74,637
-------------- -------------- ---------------
Distributions (100) (9,492) (9,592)
Redemptions (note 1(n)) - (439) (439)
Net earnings 100 3,082 3,182
-------------- -------------- ---------------
Balances at December 31, 2000 - 67,788 67,788
-------------- -------------- ---------------
Distributions (87) (8,290) (8,377)
Redemptions (note 1(n)) - (234) (234)
Net loss 87 (2,119) (2,032)
-------------- -------------- ---------------
Balances at December 31, 2001 $ - $ 57,145 $ 57,145
============== ============== ===============
See accompanying notes to financial statements
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Statements of Cash Flows
Years ended December 31, 2001, 2000 and 1999
(Amounts in thousands)
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
--------------- --------------- ---------------
Cash flows from operating activities:
Net (loss) earnings $ (2,032) $ 3,182 $ 567
Adjustments to reconcile net (loss) earnings to
net cash provided by operating activities:
Depreciation and container write-down 7,623 7,033 7,515
(Decrease) increase in allowance for doubtful accounts (105) (426) 323
Loss on sale of containers 505 89 397
Decrease (increase) in assets:
Accounts receivable 816 1,047 341
Prepaid expenses (1) 3 8
Due from affiliates, net 786 10 (91)
(Decrease) increase in liabilities:
Accounts payable & accrued liabilities (83) 232 111
Accrued recovery costs 7 33 58
Accrued damage protection plan costs (167) (178) 170
Warranty claims (61) (61) (61)
--------------- --------------- ---------------
Net cash provided by operating activities 7,288 10,964 9,338
--------------- --------------- ---------------
Cash flows from investing activities:
Proceeds from sale of containers 1,709 1,798 4,028
Container purchases (1,687) (2,201) (1,554)
--------------- --------------- ---------------
Net cash provided by (used in) investing activities 22 (403) 2,474
--------------- --------------- ---------------
Cash flows from financing activities:
Redemptions of limited partnership units (234) (439) (34)
Distributions to partners (8,418) (9,599) (11,606)
--------------- --------------- ---------------
Net cash used in financing activities (8,652) (10,038) (11,640)
--------------- --------------- ---------------
Net (decrease) increase in cash (1,342) 523 172
Cash at beginning of period 3,183 2,660 2,488
--------------- --------------- ---------------
Cash at end of period $ 1,841 $ 3,183 $ 2,660
=============== =============== ===============
See accompanying notes to financial statements
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Statements of Cash Flows - Continued
Years ended December 31, 2001, 2000 and 1999
(Amounts in thousands)
- --------------------------------------------------------------------------------
Supplemental Disclosures:
Supplemental schedule of non-cash investing and financing activities:
The following table summarizes the amounts of container purchases, distributions
to partners and proceeds from sale of containers which had not been paid or
received by the Partnership as of December 31, 2001, 2000, 1999 and 1998,
resulting in differences in amounts recorded and amounts of cash disbursed or
received by the Partnership, as shown in the Statements of Cash Flows.
2001 2000 1999 1998
---- ---- ---- ----
Container purchases included in:
Due to affiliates..................................... $ 27 $ - $ - $ 16
Container purchases payable........................... - 1,098 - -
Distributions to partners included in:
Due to affiliates..................................... 7 8 9 10
Deferred quarterly distributions...................... 81 121 127 175
Proceeds from sale of containers included in:
Due from affiliates................................... 767 253 270 792
The following table summarizes the amounts of container purchases, distributions
to partners and proceeds from sale of containers recorded by the Partnership and
the amounts paid or received as shown on the Statements of Cash Flows for the
years ended December 31, 2001, 2000 and 1999.
2001 2000 1999
---- ---- ----
Container purchases recorded......................................... $ 616 $ 3,299 $ 1,538
Container purchases paid............................................. 1,687 2,201 1,554
Distributions to partners declared................................... 8,377 9,592 11,557
Distributions to partners paid....................................... 8,418 9,599 11,606
Proceeds from sale of containers recorded............................ 2,223 1,781 3,506
Proceeds from sale of containers received............................ 1,709 1,798 4,028
The Partnership has entered into direct finance leases, resulting in the
transfer of containers from container rental equipment to accounts receivable.
The carrying values of containers transferred during the years ended December
31, 2001, 2000 and 1999 were $100, $211 and $109, respectively.
See accompanying notes to financial statements
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Notes to Financial Statements
Years ended December 31, 2001, 2000 and 1999
(Amounts in thousands except for unit and per unit amounts)
- --------------------------------------------------------------------------------
Note 1. Summary of Significant Accounting Policies
(a) Nature of Operations
Textainer Equipment Income Fund IV, L.P. (TEIF IV or the Partnership), a
California limited partnership, with a maximum life of 20 years, was formed
on October 30, 1991. The Partnership was formed to engage in the business
of owning, leasing and selling both new and used equipment related to the
international containerized cargo shipping industry, including, but not
limited to, containers, trailers and other container-related equipment.
TEIF IV offered units representing limited partnership interests (Units) to
the public until April 30, 1994, the close of the offering period, when a
total of 6,845,903 Units had been purchased for a total of $136,918.
Textainer Financial Services Corporation (TFS) is the managing general
partner of the Partnership and is a wholly-owned subsidiary of Textainer
Capital Corporation (TCC). Textainer Equipment Management Limited (TEM) and
Textainer Limited (TL) are associate general partners of the Partnership.
The managing general partner and the associate general partners are
collectively referred to as the General Partners and are commonly owned by
Textainer Group Holdings Limited (TGH). The General Partners also act in
this capacity for other limited partnerships. The General Partners manage
and control the affairs of the Partnership.
(b) Basis of Accounting
The Partnership utilizes the accrual method of accounting. Revenue is
recorded when earned according to the terms of the container rental
contracts. These contracts are classified as operating leases or direct
finance leases if they so qualify under Statement of Financial Accounting
Standards No. 13: "Accounting for Leases".
(c) Critical Accounting Policies and Estimates
Certain estimates and assumptions were made by the Partnership's management
that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. The Partnership's management evaluates its estimates on
an on-going basis, including those related to the container rental
equipment, accounts receivable and accruals.
These estimates are based on historical experience and on various other
assumptions that are believed to be reasonable under the circumstances, the
results of which form the basis for making judgments regarding the carrying
values of assets and liabilities. Actual results could differ from those
estimates under different assumptions or conditions.
The Partnership's management believes the following critical accounting
policies affect its more significant judgments and estimates used in the
preparation of its financial statements.
The Partnership maintains allowances for doubtful accounts for estimated
losses resulting from the inability of its lessees to make required
payments. These allowances are based on management's current assessment of
the financial condition of the Partnership's lessees and their ability to
make their required payments. If the financial condition of the
Partnership's lessees were to deteriorate, resulting in an impairment of
their ability to make payments, additional allowances may be required.
The Partnership depreciates its container rental equipment based on certain
estimates related to the container's useful life and salvage value. These
estimates are based upon assumptions about future demand for leased
containers and the estimated sales price at the end of the container's
useful life. If these estimates were subsequently revised based on
permanent changes in the container leasing market, the Partnership would
revise its depreciation policy.
Additionally, the recoverability of the recorded amounts of containers is
evaluated to ensure that the recorded amount does not exceed the estimated
fair value of the containers. If it is determined that the recorded amount
exceeds the estimated fair value, the Partnership writes down the value of
those containers. In determining the estimated fair value, assumptions are
made regarding future demand and market conditions for leased containers as
well as for used containers and the sales prices for used containers. If
actual market conditions are less favorable than those projected or if
actual sales prices are lower than those estimated by the Partnership,
additional write-downs may be required.
(d) Fair Value of Financial Instruments
In accordance with Statement of Financial Accounting Standards No. 107,
"Disclosures about Fair Value of Financial Instruments," the Partnership
calculates the fair value of financial instruments and includes this
additional information in the notes to the financial statements when the
fair value is different than the book value of those financial instruments.
At December 31, 2001 and 2000, the fair value of the Partnership's
financial instruments (cash, accounts receivable and current liabilities)
approximates the related book value of such instruments.
(e) Container Rental Equipment
Container rental equipment is recorded at the cost of the assets purchased,
which includes acquisition fees, less accumulated depreciation charged.
Depreciation of new containers is computed using the straight-line method
over an estimated useful life of 12 years to a 28% salvage value. Used
containers are depreciated based upon their estimated remaining useful life
at the date of acquisition (from 2 to 11 years). When assets are retired or
otherwise disposed of, the cost and related accumulated depreciation are
removed from the equipment accounts and any resulting gain or loss is
recognized in income for the period.
In accordance with Statement of Financial Accounting Standards No. 121,
"Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets
to be Disposed Of" (SFAS 121), the Partnership periodically compares the
carrying value of the containers to expected future cash flows for the
purpose of assessing the recoverability of the recorded amounts. If the
carrying value exceeds expected future cash flows, the assets are written
down to estimated fair value. In addition, containers identified for
disposal are recorded at the lower of carrying amount or fair value less
cost to sell.
New container prices steadily declined from 1995 through 1999. Although
container prices increased in 2000, these prices declined again in 2001. As
a result, the cost of new containers purchased in recent years is
significantly less than the average cost of containers purchased in prior
years. The Partnership evaluated the recoverability of the recorded amount
of container rental equipment at December 31, 2001 and 2000 for containers
to be held for continued use and determined that a reduction to the
carrying value of these containers was not required. The Partnership also
evaluated the recoverability of the recorded amount of containers
identified for sale in the ordinary course of business and determined that
a reduction to the carrying value of these containers was required. The
Partnership wrote down the value of these containers to their estimated
fair value, which was based on recent sales prices less cost of sales.
During the years ended December 31, 2001, 2000 and 1999, the Partnership
recorded write-down expenses of $954, $249 and $475, respectively, on
1,284, 344 and 746 containers identified as for sale and requiring a
reserve. At December 31, 2001 and 2000, the net book value of the 841 and
145 containers identified as for sale was $1,416 and $259, respectively.
The Partnership sold 612 of these previously written down containers for a
loss of $39 during the year ended December 31, 2001, and sold 320
previously written down containers for a loss of $9 during the same period
in 2000. During the year ended December 31, 1999, the Partnership sold
1,499 previously written down containers for a loss of $193. The
Partnership incurred losses on the sale of some containers previously
written down as the actual sales prices received on these containers were
lower than the estimates used for the write-downs, primarily due to
unexpected declines in container prices.
The Partnership also sold containers that had not been written down and
recorded losses of $466, $80 and $204 during the years ended December 31,
2001, 2000 and 1999, respectively.
If more containers are subsequently identified for sale or if container
sales prices decline, the Partnership may incur additional write-downs on
containers and/or may incur losses on the sale of containers. The
Partnership will continue to evaluate the recoverability of the recorded
amounts of container rental equipment and cautions that a write-down of
container rental equipment and/or an increase in its depreciation rate may
be required in future periods for some or all of its container rental
equipment.
In August 2001, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
Impairment or Disposal of Long-Lived Assets". SFAS No. 144 supercedes SFAS
No. 121, "Accounting for the Impairment of Long-Lived Assets to be Disposed
of", and elements of Accounting Principles Board Opinion 30, "Reporting the
Results of Operations - Reporting the Effects on Disposal of a Segment of a
Business and Extraordinary, Unusual or Infrequently Occurring Events and
Transactions."
SFAS No. 144 establishes a single-accounting model for long-lived assets to
be disposed of while maintaining many of the provisions relating to
impairment testing and valuation. The Statement will be effective on
January 1, 2002 and the Partnership is currently assessing the impact
adoption will have on the financial condition and operating results of the
Partnership.
(f) Nature of Income from Operations
Although substantially all of the Partnership's income from operations is
derived from assets employed in foreign operations, virtually all of this
income is denominated in United States dollars. The Partnership's customers
are international shipping lines that transport goods on international
trade routes. The domicile of the lessee is not indicative of where the
lessee is transporting the containers. The Partnership's business risk in
its foreign operations lies with the creditworthiness of the lessees rather
than the geographic location of the containers or the domicile of the
lessees.
No single lessee accounted for more than 10% of the Partnership's revenues
for the years ended December 31, 2001, 2000 and 1999.
(g) Allocation of Net Earnings (Loss) and Partnership Distributions
In accordance with the Partnership Agreement, sections 3.08 through 3.12,
net earnings or losses and distributions are generally allocated 1% to the
General Partners and 99% to the Limited Partners. If the allocation of
distributions exceeds the allocation of net earnings and creates a deficit
in a General Partner's capital account, the Partnership Agreement provides
for a special allocation of gross income equal to the amount of the deficit
to be made to the General Partners.
Actual cash distributions to the Limited Partners differ from the allocated
net earnings (losses) as presented in these financial statements because
cash distributions are based on cash available for distribution. Cash
distributions are paid to the general and limited partners on a monthly
basis in accordance with the provisions of the Partnership Agreement. Some
limited partners have elected to have their distributions paid quarterly.
The Partnership has recorded deferred distributions of $81 and $121 at
December 31, 2001 and 2000, respectively.
(h) Income Taxes
The Partnership is not subject to income taxes. Accordingly, no provision
for income taxes has been made. The Partnership files federal and state
information returns only. Taxable income or loss is reportable by the
individual partners.
(i) Acquisition Fees
In accordance with the Partnership Agreement, acquisition fees equal to 5%
of the container purchase price were paid to TEM. These fees are
capitalized as part of the cost of the containers.
(j) Recovery Costs
The Partnership accrues an estimate for recovery costs as a result of
defaults under its leases that it expects to incur, which are in excess of
estimated insurance proceeds. At December 31, 2001 and 2000, the amounts
accrued were $226 and $219, respectively.
(k) Damage Protection Plan
The Partnership offers a Damage Protection Plan (DPP) to lessees of its
containers. Under the terms of DPP, the Partnership earns additional
revenues on a daily basis and, in return, has agreed to bear certain repair
costs. It is the Partnership's policy to recognize revenue when earned and
provide a reserve sufficient to cover the estimated future repair costs.
DPP expenses are included in direct container expenses in the Statements of
Operations and the related reserve at December 31, 2001 and 2000, was $199
and $366, respectively.
(l) Warranty Claims
During 1996 and 1995, the Partnership settled warranty claims against two
container manufacturers. The Partnership is amortizing the settlement
amounts over the remaining estimated useful lives of the applicable
containers (ten years), reducing maintenance and repair costs over that
time. At December 31, 2001 and 2000, the unamortized portion of the
settlement amount was $293 and $354, respectively.
(m) Limited Partners' Per Unit Share of Net Earnings and Distributions
Limited partners' per unit share of both net earnings and distributions
were computed using the weighted average number of units outstanding during
the years ended December 31, 2001, 2000 and 1999, which were 6,718,741,
6,775,430, and 6,793,790, respectively.
(n) Redemptions
The following redemption offerings were consummated by the Partnership
during the years ended December 31, 2001, 2000 and 1999:
Units Average
Redeemed Redemption Price Amount Paid
-------- ---------------- -----------
Total Partnership redemptions as of
December 31, 1998.................... 48,825 $12.25 $ 598
------- -----
Year ended December 31, 1999:
3rd quarter....................... 3,288 $10.34 34
------- -----
Year ended December 31, 2000:
3rd quarter....................... 21,780 $ 8.59 187
4th quarter....................... 29,882 $ 8.44 252
------- -----
51,662 $ 8.50 439
------- -----
Year ended December 31, 2001:
1st quarter....................... 19,662 $ 8.57 169
3rd quarter....................... 6,400 $ 7.73 49
4th quarter....................... 2,100 $ 7.58 16
------- -----
28,162 $ 8.31 234
------- -----
Total Partnership redemptions as of
December 31, 2001.................... 131,937 $ 9.89 $1,305
======= =====
The redemption price is fixed by formula.
Note 2. Transactions with Affiliates
As part of the operation of the Partnership, the Partnership is to pay to
the General Partners an acquisition fee, an equipment management fee, an
incentive management fee and an equipment liquidation fee. These fees are
for various services provided in connection with the administration and
management of the Partnership. The Partnership capitalized $29, $157, and
$73 of container acquisition fees as part of container rental equipment
costs during the years ended December 31, 2001, 2000 and 1999,
respectively. The Partnership incurred $340, $399, and $472 of incentive
management fees during each of the three years ended December 31, 2001,
2000 and 1999, respectively. No equipment liquidation fees were incurred
during these periods.
The Partnership's containers are managed by TEM. In its role as manager,
TEM has authority to acquire, hold, manage, lease, sell and dispose of the
containers. TEM holds, for the payment of direct operating expenses, a
reserve of cash that has been collected from leasing operations; such cash
is included in due from affiliates, net, at December 31, 2001 and 2000.
Subject to certain reductions, TEM receives a monthly equipment management
fee equal to 7% of gross lease revenues attributable to master operating
leases and 2% of gross lease revenues attributable to full payout net
leases. For the years ended December 31, 2001, 2000 and 1999, equipment
management fees totaled $955, $1,208, and $1,206, respectively.
Certain indirect general and administrative costs such as salaries,
employee benefits, taxes and insurance are incurred in performing
administrative services necessary to the operation of the Partnership.
These costs are incurred and paid by TEM and TFS. Total general and
administrative costs allocated to the Partnership were as follows:
2001 2000 1999
---- ---- ----
Salaries $432 $450 $508
Other 291 420 405
--- --- ----
Total general and
administrative costs $723 $870 $913
=== === ===
TEM allocates these general and administrative costs based on the ratio of
the Partnership's interest in the managed containers to the total container
fleet managed by TEM during the period. TFS allocates these costs based on
the ratio of the Partnership's containers to the total container fleet of
all limited partnerships managed by TFS. The General Partners allocated the
following general and administrative costs to the Partnership:
2001 2000 1999
---- ---- ----
TEM $632 $758 $816
TFS 91 112 97
--- --- ---
Total general and
administrative costs $723 $870 $913
=== === ===
The General Partners may acquire containers in their own name and hold
title on a temporary basis for the purpose of facilitating the acquisition
of such containers for the Partnership. The containers may then be resold
to the Partnership on an all-cash basis at a price equal to the actual
cost, as defined in the Partnership Agreement. One or more General Partners
may also arrange for the purchase of containers in its or their names, and
the Partnership may then take title to the containers by paying the seller
directly. In addition, the General Partners are entitled to an acquisition
fee for containers acquired by the Partnership under any of these
arrangements.
At December 31, 2001 and 2000, due from affiliates, net, is comprised of:
2001 2000
---- ----
Due from affiliates:
Due from TEM................. $458 $758
--- ---
Due to affiliates:
Due to TL..................... 1 1
Due to TCC.................... 23 12
Due to TFS.................... 28 41
--- ---
52 54
--- ---
Due from affiliates, net $406 $704
=== ===
These amounts receivable from and payable to affiliates were incurred in
the ordinary course of business between the Partnership and its affiliates
and represent timing differences in the accrual and remittance of expenses,
fees and distributions described above or in the accrual and remittance of
net rental revenues and container sales proceeds from TEM.
Note 3. Lease Rental Income (unaudited)
Leasing income arises principally from the renting of containers to various
international shipping lines. Revenue is recorded when earned according to
the terms of the container rental contracts. These contracts are typically
for terms of five years or less. The following is the lease mix of the
on-lease containers (in units) at December 31, 2001 and 2000:
2001 2000
---- ----
On-lease under master leases 12,021 19,735
On-lease under long-term leases 5,241 4,782
------ ------
Total on-lease containers 17,262 24,517
====== ======
Under master lease agreements, the lessee is not committed to lease a
minimum number of containers from the Partnership during the lease term and
may generally return any portion or all the containers to the Partnership
at any time, subject to certain restrictions in the lease agreement. Under
long-term lease agreements, containers are usually leased from the
Partnership for periods of between three to five years. Such leases are
generally cancelable with a penalty at the end of each twelve-month period.
Under direct finance leases, the containers are usually leased from the
Partnership for the remainder of the container's useful life with a
purchase option at the end of the lease term.
The remaining containers are off-lease and are being stored primarily at a
large number of storage depots in the following locations:
America 3,296
Europe 2,070
Asia 8,783
------
Total off-lease containers 14,149
======
At December 31, 2001 approximately 6% of the Partnership's off-lease
containers had been specifically identified as for sale.
Note 4. Income Taxes
At December 31, 2001, 2000 and 1999, there were temporary differences of
$47,769, $55,481, and $60,487, respectively, between the financial
statement carrying value of certain assets and liabilities and the federal
income tax basis of such assets and liabilities. The reconciliation of net
income (loss) for financial statement purposes to net income for federal
income tax purposes for the years ended December 31, 2001, 2000 and 1999 is
as follows:
2001 2000 1999
---- ---- ----
Net (loss) income per financial statements............... $(2,032) $ 3,182 $ 567
(Decrease) increase in provision for bad debt............ (105) (426) 323
Depreciation for federal income tax purposes
less than depreciation for
financial statement purposes.......................... 5,324 3,681 323
Gain on sale of fixed assets for federal income
tax purposes in excess of gain/loss recognized
for financial statement purposes....................... 2,721 1,990 3,885
(Decrease) increase in damage protection plan costs (167) (178) 170
Warranty reserve income for tax purposes in excess
of financial statement purposes........................ (61) (61) (61)
------- ------ ------
Net income for federal income tax purposes............... $ 5,680 $ 8,188 $ 5,207
======= ====== ======
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Selected Quarterly Financial Data
- -----------------------------------------------------------------------------------------------------------------------
The following is a summary of selected quarterly financial data for the years ended
December 31, 2001, 2000 and 1999:
(Amounts in thousands)
2001 Quarters Ended
-----------------------------------------------------------
Mar. 31 June 30 Sept. 30 Dec. 31
-----------------------------------------------------------
Rental income $ 3,878 $ 3,464 $ 3,362 $ 2,989
Loss from operations $ (94) $ (287) $ (289) $(1,454)
Net loss $ (55) $ (262) $ (272) $(1,443)
Limited partners' share of net loss $ (80) $ (287) $ (292) $(1,460)
Limited partners' share of distributions $ 2,355 $ 2,353 $ 1,904 $ 1,678
2000 Quarters Ended
-----------------------------------------------------------
Mar. 31 June 30 Sept. 30 Dec. 31
-----------------------------------------------------------
Rental income $ 4,431 $ 4,395 $ 4,318 $ 4,381
Income from operations $ 704 $ 886 $ 643 $ 728
Net earnings $ 748 $ 946 $ 707 $ 781
Limited partners' share of net earnings $ 723 $ 921 $ 682 $ 756
Limited partners' share of distributions $ 2,378 $ 2,378 $ 2,372 $ 2,364
1999 Quarters Ended
-----------------------------------------------------------
Mar. 31 June 30 Sept. 30 Dec. 31
-----------------------------------------------------------
Rental income $ 4,312 $ 4,060 $ 4,334 $ 4,550
Income (loss) from operations $ 2 $ (829) $ 114 $ 1,147
Net earnings (loss) $ 39 $ (792) $ 141 $ 1,179
Limited partners' share of net earnings (loss) $ 7 $ (824) $ 111 $ 1,153
Limited partners' share of distributions $ 3,058 $ 3,057 $ 2,831 $ 2,491
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
There have been none.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Registrant has no officers or directors.
As described in the Prospectus, the Registrant's three original general partners
were TCC, TEM and Textainer Inc. (TI), which comprised the original Textainer
Group. Effective October 1, 1993, the Textainer Group restructured its
organization by forming a new holding company, Textainer Group Holdings Limited
(TGH), and the shareholders of the underlying companies which include the
General Partners accepted shares in TGH in exchange for their shares in the
individual companies. Textainer Financial Services Corporation (TFS) is the
Managing General Partner of the Partnership (prior to its name change on April
4, 1994, TFS was known as Textainer Capital Corporation). TFS is a wholly-owned
subsidiary of Textainer Capital Corporation (TCC) (prior to its name change on
April 4, 1994, TCC was known as Textainer (Delaware) Inc.). Textainer Equipment
Management Limited (TEM) is an Associate General Partner of the Partnership. TI
was an Associate General Partner of the Partnership through September 30, 1993
when it was replaced in that capacity by Textainer Limited (TL), pursuant to the
corporate restructuring effective October 1, 1993, which caused TFS, TEM and TL
to fall under the common ownership of TGH. Pursuant to this restructuring, TI
transferred substantially all of its assets including all of its rights and
duties as Associate General Partner to TL. This transfer was effective from
October 1, 1993. The end result was that TFS now serves as the Managing General
Partner and TEM and TL now serve as the Associate General Partners. The Managing
General Partner and Associate General Partners are collectively referred to as
the General Partners and are wholly-owned subsidiaries of TGH. The General
Partners also act in this capacity for other limited partnerships.
TFS, as the Managing General Partner, is responsible for managing the
administration and operation of the Registrant, and for the formulation and
administration of investment policies.
TEM, an Associate General Partner, manages all aspects of the operation of the
Registrant's equipment.
TL, an Associate General Partner, owns a fleet of container rental equipment
which is managed by TEM. TL provides advice to the Partnership regarding
negotiations with financial institutions, manufacturers and equipment owners,
and regarding the terms upon which particular items of equipment are acquired.
Section 16(a) Beneficial Ownership Reporting Compliance.
- --------------------------------------------------------
Section 16(a) of the Securities Exchange Act of 1934 requires the Partnership's
General Partners, policy-making officials and persons who beneficially own more
than ten percent of the Units to file reports of ownership and changes in
ownership with the Securities and Exchange Commission. Copies of these reports
must also be furnished to the Partnership.
Based solely on a review of the copies of such forms furnished to the
Partnership or on written representations that no forms were required to be
filed, the Partnership believes that with respect to its most recent fiscal year
ended December 31, 2001, all Section 16(a) filing requirements were complied
with. No member of management, or beneficial owner owned more than 10 percent of
any interest in the Partnership. None of the individuals subject to Section
16(a) failed to file or filed late any reports of transactions in the Units.
The directors and executive officers of the General Partners are as follows:
Name Age Position
- ---- --- --------
Neil I. Jowell 68 Director and Chairman of TGH, TEM, TL, TCC and TFS
John A. Maccarone 57 President, CEO and Director of TGH, TEM, TL, TCC and TFS
James E. Hoelter 62 Director of TGH, TEM, TL, TCC and TFS
Alex M. Brown 63 Director of TGH, TEM, TL, TCC and TFS
Harold J. Samson 80 Director of TGH and TL
Philip K. Brewer 45 Senior Vice President- Asset Management Group and Director of TEM
and TL
Robert D. Pedersen 42 Senior Vice President - Leasing Group, Director of TEM
Ernest J. Furtado 46 Senior Vice President, CFO and
Secretary of TGH, TEM, TL, TCC and TFS,
Director of TEM, TCC and TFS
Gregory W. Coan 38 Vice President and Chief Information Officer of TEM
Wolfgang Geyer 48 Regional Vice President - Europe
Mak Wing Sing 44 Regional Vice President - South Asia
Masanori Sagara 46 Regional Vice President - North Asia
Stefan Mackula 49 Vice President - Equipment Resale
Anthony C. Sowry 49 Vice President - Corporate Operations
and Acquisitions
Richard G. Murphy 49 Vice President - Risk Management
Janet S. Ruggero 53 Vice President - Administration and
Marketing Services
Jens W. Palludan 51 Regional Vice President - Americas and Logistics
Isam K. Kabbani 67 Director of TGH and TL
James A. C. Owens 62 Director of TGH and TL
S. Arthur Morris 68 Director of TGH, TEM and TL
Dudley R. Cottingham 50 Assistant Secretary, Vice President and Director of TGH, TEM and TL
Nadine Forsman 34 Controller of TCC and TFS
Neil I. Jowell is Director and Chairman of TGH, TEM, TL, TCC and TFS and a
member of the Investment Advisory Committee (see "Committees" below). He has
served on the Board of Trencor Ltd. since 1966 and as Chairman since 1973. He is
also a director of Mobile Industries, Ltd. (1969 to present), an affiliate of
Trencor, and a non-executive director of Forward Corporation Ltd. (1993 to
present). Trencor is a publicly traded diversified industrial group listed on
the Johannesburg Stock Exchange. Its business is the leasing, owning, managing
and financing of marine cargo containers worldwide and the manufacture and
export of containers for international markets. In South Africa, it is engaged
in manufacturing, trading and exports of general commodities. Trencor also has
an interest in Forward Corporation Ltd., a publicly traded holding company
listed on the Johannesburg Stock Exchange. It has interests in industrial and
consumer businesses operating in South Africa and abroad. Mr. Jowell became
affiliated with the General Partners and its affiliates when Trencor became,
through its beneficial ownership in two controlled companies, a major
shareholder of the Textainer Group in 1992. Mr. Jowell has over 36 years'
experience in the transportation industry. He holds an M.B.A. degree from
Columbia University and Bachelor of Commerce and L.L.B. degrees from the
University of Cape Town.
John A. Maccarone is President, CEO and Director of TGH, TEM, TL, TCC and
TFS. In this capacity he is responsible for overseeing the management of and
coordinating the activities of Textainer's worldwide fleet of marine cargo
containers and the activities of all of these corporations. Additionally, he is
Chairman of the Equipment Investment Committee, the Credit Committee and the
Investment Advisory Committee (see "Committees", below). Mr. Maccarone was
instrumental in co-founding Intermodal Equipment Associates (IEA), a marine
container leasing company based in San Francisco, and held a variety of
executive positions with IEA from 1979 until 1987, when he joined the Textainer
Group. Mr. Maccarone was previously a Director of Marketing for Trans Ocean
Leasing Corporation in Hong Kong with responsibility for all leasing activities
in Southeast Asia. From 1969 to 1977, Mr. Maccarone was a marketing
representative for IBM Corporation. He holds a Bachelor of Science degree in
Engineering Management from Boston University and an M.B.A. from Loyola
University of Chicago.
James E. Hoelter is a director of TGH, TEM, TL, TCC and TFS. In addition,
Mr. Hoelter is a member of the Equipment Investment Committee and the Investment
Advisory Committee (see "Committees", below). Mr. Hoelter was the President and
Chief Executive Officer of TGH and TL from 1993 to 1998 and currently serves as
a consultant to Trencor (1999 to present). Prior to joining the Textainer Group
in 1987, Mr. Hoelter was president of IEA. Mr. Hoelter co-founded IEA in 1978
with Mr. Maccarone and was president from inception until 1987. From 1976 to
1978, Mr. Hoelter was vice president for Trans Ocean Ltd., San Francisco, a
marine container leasing company, where he was responsible for North America.
From 1971 to 1976, he worked for Itel Corporation, San Francisco, where he was
director of financial leasing for the container division. Mr. Hoelter received
his B.B.A. in finance from the University of Wisconsin, where he is an emeritus
member of its Business School's Dean's Advisory Board, and his M.B.A. from the
Harvard Graduate School of Business Administration.
Alex M. Brown is a director of TGH, TEM, TL, TCC and TFS. Additionally, he
is a member of the Equipment Investment Committee and the Investment Advisory
Committee (see "Committees", below). Among other directorships, Mr. Brown is a
director of Trencor Ltd. (1996 to present). Mr. Brown became affiliated with the
Textainer Group in April 1986. From 1987 until 1993, he was President and Chief
Executive Officer of Textainer, Inc. and the Chairman of the Textainer Group.
Mr. Brown was the managing director of Cross County Leasing in England from 1984
until it was acquired by Textainer in 1986. From 1993 to 1997, Mr. Brown was
Chief Executive Officer of AAF, a company affiliated with Trencor Ltd. Mr. Brown
was also Chairman of WACO International Corporation, based in Cleveland, Ohio
until 1997.
Harold J. Samson is a director of TGH and TL and has served as such since
the Textainer Group's reorganization and formation of these companies in 1993.
He is also a member of the Investment Advisory Committee (see "Committees",
below). Mr. Samson served as a consultant to various securities firms from 1981
to 1989. From 1974 to 1981 he was Executive Vice President of Foster & Marshall,
Inc., a New York Stock Exchange member firm based in Seattle. Mr. Samson was a
director of IEA from 1979 to 1981. From 1957 to 1984 he served as Chief
Financial Officer in several New York Stock Exchange member firms. Mr. Samson
holds a B.S. in Business Administration from the University of California,
Berkeley and is a California Certified Public Accountant.
Philip K. Brewer is Senior Vice President - Asset Management Group and
director of TEM and TL. He was President of TCC and TFS from January 1, 1998 to
December 31, 1998 until his appointment as Senior Vice President - Asset
Management Group. As President of TCC, Mr. Brewer was responsible for overseeing
the management of, and coordinating the activities of TCC and TFS. As Senior
Vice President, he is responsible for optimizing the capital structure of and
identifying new sources of finance for Textainer, as well as overseeing the
management of and coordinating the activities of Textainer's risk management,
logistics and the resale divisions. Mr. Brewer is a member of the Equipment
Investment Committee, the Credit Committee and was a member of the Investment
Advisory Committee through December 31, 1998 (see "Committees" below). Prior to
joining Textainer in 1996, as Senior Vice President - Capital Markets for TGH
and TL, Mr. Brewer worked at Bankers Trust from 1990 to 1996, starting as a Vice
President in Corporate Finance and ending as Managing Director and Country
Manager for Indonesia; from 1989 to 1990, he was Vice President in Corporate
Finance at Jarding Fleming; from 1987 to 1989, he was Capital Markets Advisor to
the United States Agency for International Development; and from 1984 to 1987 he
was an Associate with Drexel Burnham Lambert in New York. Mr. Brewer holds an
M.B.A. in Finance from the Graduate School of Business at Columbia University,
and a B.A. in Economics and Political Science from Colgate University.
Robert D. Pedersen is Senior Vice-President - Leasing Group and a Director
of TEM, responsible for worldwide sales and marketing related activities and
operations. Mr. Pedersen is a member of the Equipment Investment Committee and
the Credit Committee (see "Committees" below). He joined Textainer in 1991 as
Regional Vice President for the Americas Region. Mr. Pedersen has extensive
experience in the industry having held a variety of positions with Klinge Cool,
a manufacturer of refrigerated container cooling units (from 1989 to 1991),
where he was worldwide sales and marketing director, XTRA, a container lessor
(from 1985 to 1988) and Maersk Line, a container shipping line (from 1978 to
1984). Mr. Pedersen is a graduate of the A.P. Moller shipping and transportation
program and the Merkonom Business School in Copenhagen, majoring in Company
Organization.
Ernest J. Furtado is Senior Vice President, CFO and Secretary of TGH, TEM,
TL, TCC and TFS and a Director of TEM, TCC and TFS, in which capacity he is
responsible for all accounting, financial management, and reporting functions
for TGH, TEM, TL, TCC and TFS. Additionally, he is a member of the Investment
Advisory Committee for which he serves as Secretary, the Equipment Investment
Committee and the Credit Committee (see "Committees", below). Prior to these
positions, he held a number of accounting and financial management positions at
Textainer, of increasing responsibility. Prior to joining Textainer in May 1991,
Mr. Furtado was Controller for Itel Instant Space and manager of accounting for
Itel Containers International Corporation, both in San Francisco, from 1984 to
1991. Mr. Furtado's earlier business affiliations include serving as audit
manager for Wells Fargo Bank and as senior accountant with John F. Forbes & Co.,
both in San Francisco. He is a Certified Public Accountant and holds a B.S. in
business administration from the University of California at Berkeley and an
M.B.A. in information systems from Golden Gate University.
Gregory W. Coan is Vice President and Chief Information Officer of TEM. In
this capacity, Mr. Coan is responsible for the worldwide information systems of
Textainer and serves on the Credit Committee (see "Committees", below). Prior to
these positions, Mr. Coan was the Director of Communications and Network
Services from 1995 to 1999, where he was responsible for Textainer's network and
hardware infrastructure. Mr. Coan holds a Bachelor of Arts degree in political
science from the University of California at Berkeley and an M.B.A. with an
emphasis in telecommunications from Golden Gate University.
Wolfgang Geyer is based in Hamburg, Germany and is Regional Vice President
- - Europe, responsible for coordinating all leasing activities in Europe, Africa
and the Middle East/Persian Gulf. Mr. Geyer joined Textainer in 1993 and was the
Marketing Director in Hamburg through July 1997. From 1991 to 1993, Mr. Geyer
most recently was the Senior Vice President for Clou Container Leasing,
responsible for its worldwide leasing activities. Mr. Geyer spent the remainder
of his leasing career, 1975 through 1991, with Itel Container, during which time
he held numerous positions in both operations and marketing within the company.
Mak Wing Sing is based in Singapore and is the Regional Vice President -
South Asia, responsible for container leasing activities in North/Central
People's Republic of China, Hong Kong, South China (PRC), Southeast Asia and
Australia/New Zealand. Mr. Mak most recently was the Regional Manager, Southeast
Asia, for Trans Ocean Leasing, working there from 1994 to 1996. From 1987 to
1994, Mr. Mak worked with Tiphook as their Regional General Manager, and with
OOCL from 1976 to 1987 in a variety of positions, most recently as their
Logistics Operations Manager.
Masanori Sagara is based in Yokohama, Japan and is the Regional Vice
President - North Asia, responsible for container leasing activities in Japan,
Korea, and Taiwan. Mr. Sagara joined Textainer in 1990 and was the company's
Marketing Director in Japan through 1996. From 1987 to 1990, he was the
Marketing Manager at IEA. Mr. Sagara's other experience in the container leasing
business includes marketing management at Genstar from 1984 to 1987 and various
container operations positions with Thoresen & Company from 1979 to 1984. Mr.
Sagara holds a Bachelor of Science degree in Economics from Aoyama Bakuin
University.
Stefan Mackula is Vice President - Equipment Resale, responsible for
coordinating the worldwide sale of equipment into secondary markets. Mr. Mackula
also served as Vice President - Marketing from 1989 to 1991 where he was
responsible for coordinating all leasing activities in Europe, Africa, and the
Middle East. Mr. Mackula joined Textainer in 1983 as Leasing Manager for the
United Kingdom. Prior to joining Textainer, Mr. Mackula held, beginning in 1972,
a variety of positions in the international container shipping industry.
Anthony C. Sowry is Vice President - Corporate Operations and Acquisitions.
He is also a member of the Equipment Investment Committee and the Credit
Committee (see "Committees", below). Mr. Sowry supervises all international
container operations and maintenance and technical functions for the fleets
under Textainer's management. In addition, he is responsible for the acquisition
of all new and used containers for the Textainer Group. He began his affiliation
with Textainer in 1982, when he served as Fleet Quality Control Manager for
Textainer Inc. until 1988. From 1980 to 1982, he was operations manager for
Trans Container Services in London; and from 1978 to 1982, he was a technical
representative for Trans Ocean Leasing, also in London. He received his B.A.
degree in business management from the London School of Business. Mr. Sowry is a
member of the Technical Committee of the International Institute of Container
Lessors and a certified container inspector.
Richard G. Murphy is Vice President - Risk Management, responsible for all
credit and risk management functions. He also supervises the administrative
aspects of equipment acquisitions. He is a member of and acts as secretary to
the Equipment Investment and Credit Committees (see "Committees", below). He
previously served as TEM's Director of Credit and Risk Management from 1989 to
1991 and as Controller from 1988 to 1989. Prior to the takeover of the
management of the Interocean Leasing Ltd. fleet by TEM in 1988, Mr. Murphy held
various positions in the accounting and financial areas with that company from
1980, acting as Chief Financial Officer from 1984 to 1988. Prior to 1980, he
held various positions with firms of public accountants in the U.K. Mr. Murphy
is an Associate of the Institute of Chartered Accountants in England and Wales
and holds a Bachelor of Commerce degree from the National University of Ireland.
Janet S. Ruggero is Vice President - Administration and Marketing Services.
Ms. Ruggero is responsible for the tracking and billing of fleets under TEM
management, including direct responsibility for ensuring that all data is input
in an accurate and timely fashion. She assists the marketing and operations
departments by providing statistical reports and analyses and serves on the
Credit Committee (see "Committees", below). Prior to joining Textainer in 1986,
Ms. Ruggero held various positions with Gelco CTI over the course of 15 years,
the last one as Director of Marketing and Administration for the North American
Regional office in New York City. She has a B.A. in education from Cumberland
College.
Jens W. Palludan is based in Hackensack, New Jersey and is the Regional
Vice President - Americas and Logistics, responsible for container leasing
activities in North/South America and for coordinating container logistics. He
joined Textainer in 1993 as Regional Vice President - Americas/Africa/Australia,
responsible for coordinating all leasing activities in North and South America,
Africa and Australia/New Zealand. Mr. Palludan spent his career from 1969
through 1992 with Maersk Line of Copenhagen, Denmark in a variety of key
management positions in both Denmark and overseas. Mr. Palludan's most recent
position at Maersk was that of General Manager, Equipment and Terminals, where
he was responsible for the entire managed fleet. Mr. Palludan holds an M.B.A.
from the Centre European D'Education Permanente, Fontainebleau, France.
Sheikh Isam K. Kabbani is a director of TGH and TL. He has served as such
since the Textainer Group's reorganization and formation of these companies in
1993. He is Chairman and principal stockholder of the IKK Group, Jeddah, Saudi
Arabia, a manufacturing and trading group which is active both in Saudi Arabia
and internationally. In 1959 Sheikh Isam Kabbani joined the Saudi Arabian
Ministry of Foreign Affairs, and in 1960 moved to the Ministry of Petroleum for
a period of ten years. During this time he was seconded to the Organization of
Petroleum Exporting Countries (OPEC). After a period as Chief Economist of OPEC,
in 1967 he became the Saudi Arabian member of OPEC's Board of Governors. In 1970
he left the Ministry of Petroleum to establish his own business, the National
Marketing Group, which has since been his principal business activity. Sheikh
Kabbani holds a B.A. degree from Swarthmore College, Pennsylvania, and an M.A.
degree in Economics and International Relations from Columbia University.
James A. C. Owens is a director of TGH and TL. Mr. Owens has been
associated with the Textainer Group since 1980. In 1983 he was appointed to the
Board of Textainer Inc., and served as President of Textainer Inc. from 1984 to
1987. From 1987 to 1998, Mr. Owens served as an alternate director on the Boards
of TI, TGH and TL and has served as director of TGH and TL since 1998. Apart
from his association with the Textainer Group, Mr. Owens has been involved in
insurance and financial brokerage companies and captive insurance companies. He
is a member of a number of Boards of Directors. Mr. Owens holds a Bachelor of
Commerce degree from the University of South Africa.
S. Arthur Morris is a director of TGH, TEM and TL. He is a founding partner
in the firm of Morris and Kempe, Chartered Accountants (1962-1977) and currently
functions as a correspondent member of a number of international accounting
firms through his firm Arthur Morris and Company (1977 to date). He is also
President and director of Continental Management Limited (1977 to date).
Continental Management Limited is a Bermuda corporation that provides corporate
representation, administration and management services and corporate and
individual trust administration services. Mr. Morris has over 30 years
experience in public accounting and serves on numerous business and charitable
organizations in the Cayman Islands and Turks and Caicos Islands. Mr. Morris
became a director of TL and TGH in 1993, and TEM in 1994.
Dudley R. Cottingham is Assistant Secretary, Vice President and a director
of TGH, TEM and TL. He is a partner with Arthur Morris and Company (1977 to
date) and a Vice President and director of Continental Management Limited (1978
to date), both in the Cayman Islands and Turks and Caicos Islands. Continental
Management Limited is a Bermuda corporation that provides corporate
representation, administration and management services and corporate and
individual trust administration services. Mr. Cottingham has over 20 years
experience in public accounting with responsibility for a variety of
international and local clients. Mr. Cottingham became a director of TL and TGH
in 1993, and TEM in 1994.
Nadine Forsman is the Controller of TCC and TFS. Additionally, she is a
member of the Investment Advisory Committee and Equipment Investment Committee
(See "Committees" below). As controller of TCC and TFS, she is responsible for
accounting, financial management and reporting functions for TCC and TFS as well
as overseeing all communications with the Limited Partners and as such,
supervises personnel in performing these functions. Prior to joining Textainer
in August 1996, Ms. Forsman was employed by KPMG LLP, holding various positions,
the most recent of which was manager, from 1990 to 1996. Ms. Forsman is a
Certified Public Accountant and holds a B.S. in Accounting and Finance from San
Francisco State University.
Committees
The Managing General Partner has established the following three committees
to facilitate decisions involving credit and organizational matters,
negotiations, documentation, management and final disposition of equipment for
the Partnership and for other programs organized by the Textainer Group:
Equipment Investment Committee. The Equipment Investment Committee reviews
the equipment leasing operations of the Partnership on a regular basis with
emphasis on matters involving equipment purchases, equipment remarketing issues,
and decisions regarding ultimate disposition of equipment. The members of the
committee are John A. Maccarone (Chairman), James E. Hoelter, Anthony C. Sowry,
Richard G. Murphy (Secretary), Alex M. Brown, Philip K. Brewer, Robert D.
Pedersen, Ernest J. Furtado and Nadine Forsman.
Credit Committee. The Credit Committee establishes credit limits for every
lessee and potential lessee of equipment and periodically reviews these limits.
In setting such limits, the Credit Committee considers such factors as customer
trade routes, country, political risk, operational history, credit references,
credit agency analyses, financial statements, and other information. The members
of the Credit Committee are John A. Maccarone (Chairman), Richard G. Murphy
(Secretary), Janet S. Ruggero, Anthony C. Sowry, Philip K. Brewer, Ernest J.
Furtado, Robert D. Pedersen, and Gregory W. Coan.
Investment Advisory Committee. The Investment Advisory Committee reviews
investor program operations on at least a quarterly basis, emphasizing matters
related to cash distributions to investors, cash flow management, portfolio
management, and liquidation. The Investment Advisory Committee is organized with
a view to applying an interdisciplinary approach, involving management,
financial, legal and marketing expertise, to the analysis of investor program
operations. The members of the Investment Advisory Committee are John A.
Maccarone (Chairman), James E. Hoelter, Ernest J. Furtado (Secretary), Nadine
Forsman, Harold J. Samson, Alex M. Brown and Neil I. Jowell.
ITEM 11. EXECUTIVE COMPENSATION
The Registrant has no executive officers and does not reimburse TFS, TEM or TL
for the remuneration payable to their executive officers. For information
regarding reimbursements made by the Registrant to the General Partners, see
note 2 of the Financial Statements in Item 8.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) Security Ownership of Certain Beneficial Owners
There is no person or "Group" who is known to the Registrant to be the
beneficial owner of more than five percent of the outstanding units of
limited partnership interest in the Registrant.
(b) Security Ownership of Management
As of January 1, 2002:
Number
Name of Beneficial Owner Of Units % All Units
------------------------- -------- -----------
James E. Hoelter................ 10,995 0.1638%
John A. Maccarone............... 5,500 0.0819%
------ -------
Officers and Management
as a Group................... 16,495 0.2457%
====== =======
(c) Changes in control.
Inapplicable.
ITEM 201 (d) Securities under Equity Compensation Plans.
Inapplicable.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
(Amounts in thousands)
(a) Transactions with Management and Others.
At December 31, 2001 and 2000, due from affiliates, net, is comprised
of:
2001 2000
---- ----
Due from affiliates:
Due from TEM....................... $ 458 $ 758
--- ---
Due to affiliates:
Due to TL.......................... 1 1
Due to TCC......................... 23 12
Due to TFS......................... 28 41
--- ---
52 54
--- ---
Due from affiliates, net $ 406 $ 704
=== ===
These amounts receivable from and payable to affiliates were incurred
in the ordinary course of business between the Partnership and its
affiliates and represent timing differences in the accrual and
remittance of expenses, fees and distributions or in the accrual and
remittance of net rental revenues and container sales proceeds from
TEM.
In addition, the Registrant paid or will pay the following amounts to
the General Partners:
Acquisition fees in connection with the purchase of containers on
behalf of the Registrant:
2001 2000 1999
---- ---- ----
TEM.......... $ 29 $ 157 $ 73
-- --- --
Management fees in connection with the operations of the Registrant:
2001 2000 1999
---- ---- ----
TEM.......... $1,030 $1,295 $1,310
TFS.......... 265 312 368
----- ----- -----
Total........ $1,295 $1,607 $1,678
===== ===== =====
Reimbursement for administrative costs in connection with the
operations of the Registrant:
2001 2000 1999
---- ---- ----
TEM.......... $ 632 $ 758 $ 816
TFS.......... 91 112 97
--- --- ---
Total........ $ 723 $ 870 $ 913
=== === ===
The General Partners may acquire containers in their own name and hold
title on a temporary basis for the purpose of facilitating the
acquisition of such containers for the Partnership. The containers may
then be resold to the Partnership on an all-cash basis at a price
equal to the actual cost, as defined in the Partnership Agreement. One
or more General Partners may also arrange for the purchase of
containers in its or their names, and the Partnership may then take
title to the containers by paying the seller directly. In addition,
the General Partners are entitled to an acquisition fee for containers
acquired by the Partnership under any of these arrangements.
(b) Certain Business Relationships.
Inapplicable.
(c) Indebtedness of Management
Inapplicable.
(d) Transactions with Promoters
Inapplicable.
See the "Management" and "Compensation of General Partners and Affiliates"
sections of the Registrant's Prospectus, as supplemented, and the Notes to the
Financial Statements in Item 8.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) 1. Audited financial statements of the Registrant for the year
ended December 31, 001 are contained in Item 8 of this
Report.
2. Financial Statement Schedules.
(i) Independent Auditors' Report on Supplementary
Schedule.
(ii) Schedule II - Valuation and Qualifying Accounts.
3. Exhibits Incorporated by reference.
(i) The Registrant's Prospectus as contained in
Pre-Effective Amendment No. 2 to the Registrant's
Registration Statement (No. 33-44687), as filed with
the Commission April 10, 1992, as supplemented by
Post-Effective Amendment No. 3 filed with the
Commission under Section 8(c)of the Securities Act
of 1933 on May 25, 1993, and as supplemented
by Supplement No. 8 as filed under Rule 424(b) of the
Securities Act of 1933 on March 1, 1994.
(ii) The Registrant's limited partnership agreement,
Exhibit A to the Prospectus.
(b) During the year ended 2001, no reports on Form 8-K have been filed by
the Registrant.
Independent Auditors' Report on Supplementary Schedule
------------------------------------------------------
The Partners
Textainer Equipment Income Fund IV, L.P.:
Under the date of February 11, 2002, we reported on the balance sheets of
Textainer Equipment Income Fund IV, L.P. (the Partnership) as of December 31,
2001 and 2000, and the related statements of operations, partners' capital and
cash flows for each of the years in the three-year period ended December 31,
2001, which are included in the 2001 annual report on Form 10-K. In connection
with our audit of the aforementioned financial statements, we also audited the
related financial statement schedule as listed in Item 14. This financial
statement schedule is the responsibility of the Partnership's management. Our
responsibility is to express an opinion on this financial statement schedule
based on our audits.
In our opinion, such schedule, when considered in relation to the basic
financial statements taken as a whole, presents fairly, in all material
respects, the information set forth therein.
/s/ KPMG LLP
San Francisco, California
February 11, 2002
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
(a California Limited Partnership)
Schedule II - Valuation and Qualifying Accounts
(Amounts in thousands)
- --------------------------------------------------------------------------------------------------------------------
Charged Balance
Balance at to Costs Charged at End
Beginning and to Other Of
of Period Expenses Accounts Deduction Period
---------- -------- -------- --------- -------
For the year ended December 31, 2001:
Allowance for
doubtful accounts $ 323 $ (25) $ - $ (80) $ 218
----- ------ ------- ----- -----
Recovery cost reserve $ 219 $ 115 $ - $ (108) $ 226
----- ------ ------- ----- -----
Damage protection
plan reserve $ 366 $ 385 $ - $ (552) $ 199
----- ------ ------- ----- -----
For the year ended December 31, 2000:
Allowance for
doubtful accounts $ 749 $ (120) $ - $ (306) $ 323
----- ------ ------- ----- -----
Recovery cost reserve $ 186 $ 140 $ - $ (107) $ 219
----- ------ ------- ----- -----
Damage protection
plan reserve $ 544 $ 385 $ - $ (563) $ 366
----- ------ ------- ----- -----
For the year ended December 31, 1999:
Allowance for
doubtful accounts $ 426 $ 364 $ - $ (41) $ 749
----- ------ ------- ----- -----
Recovery cost reserve $ 128 $ 173 $ - $ (115) $ 186
----- ------ ------- ----- -----
Damage protection
plan reserve $ 374 $ 831 $ - $ (661) $ 544
----- ------ ------- ----- -----
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.
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
A California Limited Partnership
By Textainer Financial Services Corporation
The Managing General Partner
By
_________________________________________
Ernest J. Furtado
Senior Vice President
Date: March 28, 2002
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer Financial
Services Corporation, the Managing General Partner of the Registrant, in the
capacities and on the dates indicated:
Signature Title Date
___________________________________ Senior Vice President, CFO March 28, 2002
Ernest J. Furtado (Principal Financial and
Accounting Officer),
Secretary and Director
___________________________________ President (Principal Executive March 28, 2002
John A. Maccarone Officer), and Director
___________________________________ Chairman of the Board and Director March 28, 2002
Neil I. Jowell
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.
TEXTAINER EQUIPMENT INCOME FUND IV, L.P.
A California Limited Partnership
By Textainer Financial Services Corporation
The Managing General Partner
By /s/Ernest J. Furtado
_______________________________________
Ernest J. Furtado
Senior Vice President
Date: March 28, 2002
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer Financial
Services Corporation, the Managing General Partner of the Registrant, in the
capacities and on the dates indicated:
Signature Title Date
/s/Ernest J. Furtado
_________________________________________ Senior Vice President, CFO March 28, 2002
Ernest J. Furtado (Principal Financial and
Accounting Officer),
Secretary and Director
/s/John A. Maccarone
_________________________________________ President (Principal Executive March 28, 2002
John A. Maccarone Officer), and Director
/s/Neil I.Jowell
________________________________________ Chairman of the Board and Director March 28, 2002
Neil I. Jowell