10-Q 1 p410q302.txt PIF IV 10-Q 3RD QUARTER, 2002 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2002 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 33-32744 CSA Income Fund IV Limited Partnership (Exact name of registrant as specified in its charter) Massachusetts 04-3072449 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 22 Batterymarch St. Boston, Massachusetts 02109 (Address of principal executive offices) (Zip Code) (617) 357-1700 (Registrant's telephone number, including area code) Former name. former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: X No: ITEM 1. - FINANCIAL INFORMATION CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF FINANCIAL POSITION AS OF

(Unaudited) ~~June~~September 30, December 31, 2002 2001 Assets Cash and cash equivalents $ 21,~~605~~445,~~580~~781 $ 1,999,033 Short term investment - 2,124,290 Rentals receivable 161,~~723~~458 195,805 Remarketing receivable 1,451 - Accounts receivable - affiliates -41,527 3,950 Rental equipment, at cost 11,~~819~~059,~~984~~729 18,678,320 Less accumulated depreciation (1110,~~462~~834,~~423~~244) (17,550,682) Net rental equipment ~~357~~225,~~561~~485 1,127,638 Total assets $ 21,~~979~~715,~~864~~702 $ 5,450,716 Liabilities and partners' capital Accrued management fees $ 1514,~~728~~217 $ 36,250 Accounts payable ~~and accrued expenses 14~~18,~~293~~120 16,000 Deferred income 2125,~~917~~374 88,784 Notes payable ~~241~~203,~~756~~164 316,992 Total liabilities ~~293~~260,~~694~~875 458,026 Partners' capital: General Partner: Capital contribution 1,000 1,000 Cumulative net income ~~435~~517,~~819~~185 177,549 Cumulative cash distributions (~~515~~530,~~379~~736) (484,665) (7812,~~560~~551) (306,116) Limited Partners (506,776 units): Capital contributions, net of offering costs 46,201,039 46,201,039 Cumulative net income 7,~~071~~294,~~237~~213 6,564,657 Cumulative cash distributions (5052,~~507~~027,~~546~~874) (47,466,890) 21,~~764~~467,~~730~~378 5,298,806 Total partners' capital 21,~~686~~454,~~170~~827 4,992,690 Total liabilities and partners' capital $ 21,~~979~~715,~~864~~702 $ 5,450,716

CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2002 AND 2001

Three Months ~~Six~~Nine Months ~~June~~September 30, ~~June~~September 30, 2002 2001 2002 2001 Revenues: Rental income $ ~~432~~389,~~965~~766 $ 1,~~747~~654,~~390~~356 $ 1,~~088~~477,~~045~~811 $ 35,~~878~~533,~~892~~248 Interest income 1811,~~510~~479 8766,~~673~~272 7788,~~217~~696 ~~122~~188,~~414~~686 Gain on sale of equipment ~~181~~81,~~657~~366 2825,~~829~~123 ~~258~~339,~~270~~636 93118,~~778~~901 Net gain (loss) on foreign currency 4886,~~302~~172 2(3,~~179~~832) 31117,~~318~~490 (6669,~~127~~959) Total revenues ~~681~~568,~~434~~783 1,~~866~~741,~~071~~919 12,~~454~~023,~~850~~633 45,~~028~~770,~~957~~876 Costs and expenses: Depreciation ~~175~~159,~~960~~019 1,~~243~~309,~~324~~727 ~~451~~610,~~202~~221 24,~~963~~272,~~127~~854 Interest 43,~~575~~921 178,~~737~~563 913,~~790~~711 5968,~~950~~513 Management fees 2419,~~132~~488 9084,~~150~~499 5776,~~065~~553 ~~201~~286,~~564~~063 General and administrative 8882,~~905~~013 8884,~~444~~167 ~~171~~253,~~943~~956 ~~181~~265,~~712~~879 Total expenses ~~293~~264,~~572~~441 1,~~439~~486,~~655~~956 ~~690~~954,~~000~~441 34,~~406~~893,~~353~~309 Net income $ ~~387~~304,~~862~~342 $ ~~426~~254,~~416~~963 $ ~~764~~1,~~850~~069,192 $ ~~622~~877,~~604~~567 Net income allocation: General Partner $ ~~181~~81,~~657~~366 $ 2825,~~829~~123 $ ~~258~~339,~~270~~636 $ 93118,~~778~~901 Limited Partners ~~206~~222,~~205~~976 ~~397~~229,~~587~~840 ~~506~~729,~~580~~556 ~~528~~758,~~826~~666 $ ~~387~~304,~~862~~342 $ ~~426~~254,~~416~~963 $ ~~764~~1,~~850~~069,192 $ ~~622~~877,~~604~~567 Net income per weighted average Limited Partnership Unit $ 0.4144 $ 0.7846 $ 1.0044 $ 1.0450 Number of weighted average Limited Partnership Units 506,776 506,776 506,776 506,776

CSA INCOME FUND IV LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2002 AND 2001

Three Months Ended ~~Six~~Nine Months Ended ~~June~~September 30, ~~June~~September 30, 2002 2001 2002 2001 Cash flows from operations: Cash received from rental of equipment $ ~~472~~453,~~986~~133 $ 1,~~752~~717,~~697~~213 $ 1,~~235~~688,~~528~~661 $35,~~839~~556,~~623~~836 Cash paid for operating and management expenses (~~109~~99,~~300~~185) (~~202~~165,~~425~~505) (~~251~~350,~~237~~422) (~~482~~647,~~429~~934) Interest paid (43,~~575~~921) (178,~~737~~563) (913,~~790~~711) (5968,~~950~~513) Interest received 1811,~~510~~479 8766,~~673~~272 7788,~~217~~696 ~~122~~188,~~414~~686 Net cash from operations ~~377~~361,~~621~~506 1,~~620~~609,~~208~~417 1,~~051~~413,~~718~~224 35,~~419~~029,~~658~~075 Cash flow from investments: Short term investment - 84655,~~067~~149 2,124,290 (32,~~415~~760,~~933~~784) Sale of equipment ~~404~~52,~~881~~972 ~~538~~297,~~638~~065 ~~577~~630,~~145~~117 1,~~302~~599,~~359~~424 Net cash from (used for) investments ~~404~~52,~~881~~972 ~~622~~952,~~705~~214 2,~~701~~754,~~435~~407 (21,~~113~~161,~~574~~360) Cash flows from financing: Repayment of notes payable (3738,~~939~~592) (~~696~~131,~~325~~429) ( 75113,~~236~~828) (1,~~796~~927,~~033~~462) Payment of cash distributions (1,535,685) (1,279,735) (34,~~071~~607,~~370~~055) (23,~~559~~839,~~472~~207) Net cash used for financing (1,~~573~~574,~~624~~277) (1,~~976~~411,~~060~~164) (34,~~146~~720,~~606~~883) (45,~~355~~766,~~505~~669) Net change in cash and cash equivalents (~~791~~1,~~122~~159,799) ~~266~~1,~~853~~150,467 ~~606~~(553,~~547~~252) (31,~~049~~898,~~421~~954) Cash and cash equivalents at beginning of period 32,~~396~~605,~~702~~580 ~~172~~439,~~336~~189 1,999,033 3,488,610 Cash and cash equivalents at end of period $21,~~605~~445,~~580~~781 $ ~~439~~1,~~189~~589,656 $21,~~605~~445,~~580~~781 $ ~~439~~1,~~189~~589,656

CSA INCOME FUND IV LIMITED PARTNERSHIP NOTE TO FINANCIAL STATEMENTS The quarterly financial statements have been prepared by the Partnership without audit. Certain information and footnote disclosures normally included in the annual financial statements have been condensed or omitted from the accompanying statements. For such information, reference should be made to the financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2001. In the General Partner's opinion, the unaudited financial statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly the financial position of CSA Income Fund IV Limited Partnership as of September 30, 2002 and the results of operations and cash flows for the three and nine month periods ended September 30, 2002 and September 30, 2001. CSA INCOME FUND IV LIMITED PARTNERSHIP FORM 10-Q ITEM 2. - GENERAL PARTNER'S DISCUSSION OF OPERATIONS Rental Income was $389,766 and $1,654,356 and Net Income was $304,342 and $254,963 for the quarters ended September 30, 2002 and 2001, respectively. For the nine months ended September 30, 2002 and 2001, Rental Income was $1,477,811 and $5,533,248, and Net Income was $1,069,192 and $877,567, respectively. The decrease in Rental Income was due to lease expirations as the partnership approaches wind-up. The increase in Net Income was primarily due to decreases in interest and management fee expense on equipment leases that have expired, as well as, decreased depreciation expense on leases that have been extended or are paying on a month to month basis. The Partnership also recorded a gain on foreign currency of $86,172 in the third quarter of 2002 as compared to a loss of 3,832 in the prior year. During the three months ended September 30, 2002, the Partnership generated $414,478 in cash flow from operations and from the sale of equipment. The Partnership utilized cash to reduce outstanding notes payable by $38,592 and make cash distributions to the partners of $1,535,685. The Partnership paid distributions of $1.00 per Limited Partnership unit on July 15th, August 15th, and September 13th, 2002. The General Partner will now complete the wind-up of the Partnership with a final distribution on December 13th 2002. The December final distribution will be approximately $9.00-$10.00 per unit. The Limited Partners will receive their final Partnership K-1 package in early March 2003. In accordance with the Partnership Agreement, pursuant to section 8.3 (c), accounting profits from the sale of equipment that are generated as part of the Partnership's wind-up shall be allocated to each partner, first in the amount equal to the negative balance in the capital account of such partner; and secondly, 99% to the Limited Partners and 1% to the General Partner. Therefore, certain gains on the disposition of partnership assets were allocated during the first three quarters of 2002 and 2001 to the General Partner to reduce its Capital Account negative balance. CSA INCOME FUND IV LIMITED PARTNERSHIP FORM 10-Q ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Not Applicable Item 4. CONTROLS AND PROCEDURES The General Partner has evaluated the Partnership's disclosure controls and procedures. Based on that evaluation, it was determined that the Partnership's disclosure controls and procedures are effective in ensuring information required to be disclosed by the Partnership in its Exchange Act Reports is accumulated and communicated to the Partnership's management as appropriate to allow timely decisions regarding required disclosure. The General Partner has also evaluated the Partnership's internal control structure. Based on that evaluation, it was determined that there were no significant changes in the Partnership's internal controls or in other factors that could affect these controls subsequent to the date of the evaluation, including any corrective action with regard to significant deficiencies and material weaknesses. CSA INCOME FUND IV LIMITED PARTNERSHIP PART II

Item 1 - Legal Proceedings None Item 2 - Changes in Securities None Item 3 - Defaults ~~Upon~~upon Senior Securities None Item 4 - Submission of Matters to a Vote of Security Holders None Item 5 - Other Information None Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits - Exhibit 27. Financial Data Schedule. (b)Reports on Form 8-K - No reports have been filed on Form 8-K during the ~~second~~third quarter of 2002.

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

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