10-Q 1 ivq202.txt CSA INCOME FUND IV LTD PARTNERSHIP FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2002 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 33-32744 CSA Income Fund IV Limited Partnership (Exact name of registrant as specified in its charter) Massachusetts 04-3072449 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 22 Batterymarch St. Boston, Massachusetts 02109 (Address of principal executive offices) (Zip Code) (617) 357-1700 (Registrant's telephone number, including area code) Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: X No: PART I - FINANCIAL INFORMATION CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF FINANCIAL POSITION AS OF

CSA INCOME FUND IV LIMITED PARTNERSHIP UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2002 AND 2001

CSA INCOME FUND IV LIMITED PARTNERSHIP UNAUDITED STATEMENTS OF CASH FLOWS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2002 AND 2001

CSA INCOME FUND IV LIMITED PARTNERSHIP NOTE TO FINANCIAL STATEMENTS The quarterly financial statements have been prepared by the Partnership without audit. Certain information and footnote disclosures normally included in the annual financial statements have been condensed or omitted from the accompanying statements. For such information, reference should be made to the financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2001. In the General Partner's opinion, the unaudited financial statements reflect all adjustments which are of a normal recurring nature, necessary to present fairly the financial position of CSA Income Fund IV Limited Partnership as of June 30, 2002 and the results of operations and cash flows for the three and six month periods ended June 30, 2002 and June 30, 2001. CSA INCOME FUND IV LIMITED PARTNERSHIP GENERAL PARTNER'S DISCUSSION OF OPERATIONS Rental income was $432,965 and $1,747,390 and net income was $387,862 and $426,416 for the quarters ended June 30, 2002 and 2001, respectively. For the six months ended June 30, 2002 and 2001, Rental income was $1,088,045 and $3,878,892, and net income was $764,850 and $622,604. The decrease in net income for the quarter ended June 30, 2002 was primarily due to lease expirations as the partnership approaches wind-up. The increase in net income for the six months ended June 30, 2002 was primarily due to lower depreciation expense recorded of $471,202 as compared to $2,963,127 for the same period in 2001. The depreciation expense is significantly lower in 2002 primarily due to a majority of the remaining leases in the Partnership's portfolio being nearly or fully depreciated. The Partnership generated $782,502 in cash flow from operations and from the sale of equipment during the three months ended June 30, 2002. The Partnership utilized these funds and cash on hand to reduce outstanding notes payable by $37,939 and made cash distributions to the partners of $1,535,685. The Partnership paid distributions of $1.00 per Limited Partnership unit on the April 15th, May 15th, and June 14th 2002. To date, the Partnership has made cash distributions to the Limited Partners ranging from 88% to 110% of their initial investment, depending on when the Limited Partners entered the Partnership. The objective of the Partnership is to return the Limited Partner's investment through current distributions and provide a return on this investment by continued distributions. As noted previously, the General Partner of CSA Income Fund IV Limited Partnership is in the process of completing the wind-up of the Partnership. In finalizing the sale of the remaining Partnership assets certain Partnership aircraft engines, are requiring additional General Partner effort in order to maximize the value of these assets to the Limited Partners. As soon as the remarketing of these Partnership assets has been completed, the Partnership will make a Final Distribution to the Limited Partners. GENERAL PARTNER'S DISCUSSION OF OPERATIONS (continued) In accordance with the Partnership Agreement, pursuant to section 8.3 (c), accounting profits from the sale of equipment that are generated as part of the Partnership's wind-up shall be allocated to each partner, first in the amount equal to the negative balance in the capital account of such partner; and secondly, 99% to the Limited Partners and 1% to the General Partner. Therefore, certain gains on the disposition of partnership assets were allocated during the first two quarters of 2002 and 2001 to the General Partner to reduce its Capital Account negative balance. Management reviews the Partnership's projected performance on a periodic basis. Based on that analysis the General Partner presently estimates that continued cash distributions will return the entire initial investment of the Limited Partners and a return thereon. The General Partner will continue to report on the Limited Partners' return of investment with each cash distribution. CSA INCOME FUND IV LIMITED PARTNERSHIP PART II

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CSA Income Fund IV Limited Partnership (Registrant) By its General Partner, CSA Lease Funds, Inc. Date J. Frank Keohane President Principal Executive Officer Date: Richard P. Timmons Corporate Controller Principal Accounting and Finance Officer Form 10-Q page 7

CSA INCOME FUND IV LIMITED PARTNERSHIP 10-Q