10-Q 1 ivq1q1.txt PIF IV 10-Q 1ST QUARTER, 2001 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2001 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 33-32744 CSA Income Fund IV Limited Partnership (Exact name of registrant as specified in its charter) Massachusetts 04-3072449 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 22 Batterymarch St, Boston, Massachusetts 02109 (Address of principal executive offices) (Zip Code) (617) 357-1700 (Registrant's telephone number, including area code) Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: X No: PART I - FINANCIAL INFORMATION CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF FINANCIAL POSITION AS OF

CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF OPERATIONS Unaudited Quarters Ended March 31,

CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS Unaudited Quarters Ended

CSA INCOME FUND IV LIMITED PARTNERSHIP NOTE TO FINANCIAL STATEMENTS The quarterly financial statements have been prepared by the Partnership without audit. Certain information and footnote disclosures normally included in the annual financial statements have been condensed or omitted from the accompanying statements. For such information, reference should be made to the financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2000. In the General Partner's opinion, the unaudited financial statements Reflect all adjustments which are of a normal recurring nature, necessary to Present fairly the financial position of CSA Income Fund IV Limited Partnership As of March 31, 2001 and the results of operations and cash flows for the Three month periods ended March 31, 2001 and March 31, 2000. CSA INCOME FUND IV LIMITED PARTNERSHIP FORM 10-Q GENERAL PARTNER'S DISCUSSION OF OPERATIONS Rental income was $2,131,502 and $2,812,258 and net income was $196,188 And $386,873 for the quarters ended March 31, 2001 and March 31, 2000, respectively. The decrease in rental income was primarily due to lease expirations as the partnership approaches wind-up. The decrease in net income was primarily due to a decrease in gain on sale of equipment recorded in the quarter ended March 31, 2001 of $64,949 as compared to $315,385 for the same period in 2000. During the first quarter of 2001, the Partnership recorded a loss on foreign currency of $68,306 due to the US Dollar's increased strength versus European currencies. The loss was the result of two factors: first, the Partnership had cash balances in English sterling of approximately 720,000 as of and recorded on it's December 31, 2000 Balance Sheet, also secondly, sales and rent proceeds received during this first quarter ended March 31, 2001 were approximately 730,000. These cash balances are marked to market for reporting on U.S.Financial Statements and since the value of sterling was 1.4159 as of March 31st, an appropriate adjustment was made for the US Dollar equivalent on the Partnership Financial Statements as of this date. The Partnership generated $2,563,171 in cash flow from operations and From the sale of equipment during the three months ended March 31, 2001. The Partnership utilized these funds to reduce outstanding notes payable by $1,099,708 and made cash distributions to partners of $1,279,737. During March 2001, the Partnership purchased an interest, as an interim lender, secured by equipment and a short term monthly lease payment obligation of a Fortune 100 Company. The Partnership's portion of the short-term loan participation was $3,800,666 of which $3,500,000 was outstanding as of March 31, 2001. The Partnership earns interest at the rate of 7.75% per annum on the monthly reducing balances over the life of the participation. The General Partner, in it's own right, has participated in this loan in an approximate amount of $3,586,000. It is expected that this loan will be paid off by a permanent lender in 30-60 days. The Partnership paid distributions of $.83 per limited partnership unit on the 15th of January, February and March 2001. To date, the Partnership has made cash distributions to the Limited Partners ranging from 74% to 96% of their initial investment, depending on when the Limited Partners entered the Partnership. The objective of the Partnership is to return the Limited Partner's investment through current distributions and provide a return on this investment by continued distributions. During the fourth quarter of year 2000, the General Partner of CSA Income Fund IV Limited Partnership determined that it was in the best interest of the Partnership and the Limited Partners to begin the wind-up of the Partnership in year 2001. The wind-up is currently anticipated to be completed during year 2002. GENERAL PARTNER'S DISCUSSION OF OPERATIONS (continued) In accordance with the Partnership Agreement, pursuant to section 8.3 (c), accounting profits from the sale of equipment that are generated as part of the Partnership's wind-up shall be allocated to each partner, first in the amount equal to the negative balance in the capital account of such partner; and secondly, 99% to the Limited Partners and 1% to the General Partner until the Capital Accounts of the Limited Partners are equal to the amount of cash which would be required to be distributed to the Limited Partners in order to achieve Payout. Therefore, certain gains on the disposition of partnership assets were allocated during the first quarter of 2001 to the General Partner to reduce its Capital Account negative balance. This accounting entry has no cash impact on future Limited Partnership distributions. Management reviews the Partnership's projected performance on a periodic basis. Based on that analysis the General Partner presently estimates that continued cash distributions will return the entire initial investment of the Limited Partners and a return thereon. The General Partner will continue to report on the Limited Partners' return of investment with each cash distribution. CSA INCOME FUND IV LIMITED PARTNERSHIP PART II

CSA INCOME FUND IV LIMITED PARTNERSHIP 10-Q