United States
Securities and Exchange Commission
Washington, DC 20549
Form 10-QSB
- --------------------------------------------------------------------------------
(Mark one)
XX QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
- --------- ACT OF 1934
For the quarterly period ended September 30, 1999
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934
For the transition period from ______________ to _____________
- --------------------------------------------------------------------------------
Commission File Number: 0-27006
Million Dollar Saloon, Inc.
(Exact name of small business issuer as specified in its charter)
Nevada 13-3428657
------------------------ ------------------------
(State of incorporation) (IRS Employer ID Number)
6848 Greenville Avenue, Dallas, TX 75231
----------------------------------------
(Address of principal executive offices)
(214) 691-6757
---------------------------
(Issuer's telephone number)
- --------------------------------------------------------------------------------
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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. YES X NO
State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: October 26, 1999: 5,731,778
---------
Transitional Small Business Disclosure Format (check one): YES NO X
<PAGE>
Million Dollar Saloon, Inc. and Subsidiaries
Form 10-QSB for the Quarter ended September 30, 1999
Table of Contents
Page
----
Part I - Financial Information
Item 1 Financial Statements 3
Item 2 Management's Discussion and Analysis or Plan of Operation 12
Part II - Other Information
Item 1 Legal Proceedings 14
Item 2 Changes in Securities 14
Item 3 Defaults Upon Senior Securities 14
Item 4 Submission of Matters to a Vote of Security Holders 14
Item 5 Other Information 14
Item 6 Exhibits and Reports on Form 8-K 14
Signatures 15
2
<PAGE>
<TABLE>
<CAPTION>
Part 1 - Item 1 - Financial Statements
Million Dollar Saloon, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, 1999 and 1998
(Unaudited)
Assets
------
1999 1998
----------- -----------
<S> <C> <C>
Current Assets
Cash on hand and in bank $ 705,012 $ 730,242
Note receivable - current portion 24,480 22,604
Inventory 14,387 14,438
Prepaid expenses 34,870 90,682
----------- -----------
Total current assets 778,749 857,966
----------- -----------
Property and Equipment - At Cost
Buildings and related improvements 1,987,514 1,987,513
Furniture and equipment 822,149 791,049
Vehicles -- 52,728
----------- -----------
2,809,663 2,831,290
Less accumulated depreciation (1,596,986) (1,542,662)
----------- -----------
1,212,677 1,288,628
Land 741,487 741,487
----------- -----------
Net property and equipment 1,954,164 2,030,115
----------- -----------
Other Assets
Note receivable - noncurrent portion 63,772 87,426
Accounts receivable from officers, shareholders and affiliates -- 836,107
Organization costs, net of accumulated amortization
of $60,884 and $45,898, respectively 14,044 29,030
Loan costs, net of accumulated amortization of
$25,285 and $18,964 respectively 6,322 12,643
Deferred tax asset -- --
Other 6,975 7,725
----------- -----------
Total other assets 91,113 972,931
----------- -----------
Total Assets $ 2,824,026 $ 3,861,012
=========== ===========
</TABLE>
- Continued -
The financial information presented herein has been prepared by management
without audit by independent certified public accountants.
3
<PAGE>
<TABLE>
<CAPTION>
Million Dollar Saloon, Inc. and Subsidiaries
Consolidated Balance Sheets - Continued
September 30, 1999 and 1998
(Unaudited)
Liabilities and Shareholders' Equity
------------------------------------
1999 1998
----------- -----------
<S> <C> <C>
Current Liabilities
Current portion of long-term debt $ 181,905 $ 122,370
Accounts payable - trade 23,568 26,311
Accrued liabilities 59,194 55,614
Dividends payable 57,318 61,445
Federal income taxes payable 3,527 8,592
Tenant deposits 6,500 6,500
----------- -----------
Total current liabilities 332,012 280,832
----------- -----------
Long-Term Liabilities
Long-term debt, net of current maturities 2,513 255,364
Deferred tax liability 125,057 98,936
----------- -----------
Total Liabilities 459,582 635,132
----------- -----------
Commitments and Contingencies
Shareholders' Equity
Preferred stock - $0.001 par value. 5,000,000 shares
authorized. None issued and outstanding -- --
Common stock - $0.001 par value. 50,000,000 shares
authorized. 5,731,778 and 6,144,451 issued
and outstanding, respectively 5,732 6,143
Additional paid-in capital -- 598,965
Retained earnings 2,358,712 2,650,772
----------- -----------
2,364,444 3,255,880
Treasury stock - at cost -- (30,000)
----------- -----------
Total Shareholders' Equity 2,364,444 3,225,880
----------- -----------
Total Liabilities and Shareholders' Equity $ 2,824,026 $ 3,861,012
=========== ===========
</TABLE>
The financial information presented herein has been prepared by management
without audit by independent certified public accountants.
4
<PAGE>
<TABLE>
<CAPTION>
Million Dollar Saloon, Inc. and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
Nine and Three months ended September 30, 1999 and 1998
(Unaudited)
Nine months Nine months Three months Three months
ended ended ended ended
September 30, September 30, September 30, September 30,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues
Bar and restaurant sales $ 2,448,838 $ 2,549,190 $ 804,456 $ 900,535
Rental income 514,961 378,579 174,525 139,524
----------- ----------- ----------- -----------
Total revenues 2,963,799 2,927,769 978,981 1,040,059
----------- ----------- ----------- -----------
Cost of Sales - Bar and
Restaurant Operations 1,479,889 1,504,252 463,252 517,504
----------- ----------- ----------- -----------
Gross Profit 1,483,910 1,423,517 515,729 522,555
----------- ----------- ----------- -----------
Operating Expenses
General and administrative expenses 1,063,030 972,561 390,124 299,908
Interest expense 19,645 36,904 3,346 11,295
Depreciation and amortization 77,582 83,074 19,950 27,692
----------- ----------- ----------- -----------
Total operating expenses 1,160,257 1,092,539 413,420 338,895
----------- ----------- ----------- -----------
Income from Operations 323,653 330,978 102,309 183,660
Other Income (Expenses)
Interest and other miscellaneous 14,973 45,086 4,738 15,923
Gain on sale of fixed assets (691) -- (691) --
----------- ----------- ----------- -----------
Income before Income Taxes 337,935 376,064 106,356 199,583
Income Tax (Expense)
Currently payable (95,180) (128,159) (16,430) (69,070)
Deferred -- -- -- --
----------- ----------- ----------- -----------
Net Income 242,755 247,905 89,926 130,513
Other comprehensive income -- -- -- --
----------- ----------- ----------- -----------
Comprehensive Income $ 242,755 $ 247,905 $ 89,926 $ 130,513
=========== =========== =========== ===========
</TABLE>
The financial information presented herein has been prepared by management
without audit by independent certified public accountants.
5
<PAGE>
<TABLE>
<CAPTION>
Million Dollar Saloon, Inc. and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
Nine and Three months ended September 30, 1999 and 1998
(Unaudited)
Nine months Nine months Three months Three months
ended ended ended ended
September 30, September 30, September 30, September 30,
1999 1998 1999 1998
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net Income $ 242,755 $ 247,905 $ 89,926 $ 130,513
Other comprehensive income -- -- -- --
---------- ---------- ---------- ----------
Comprehensive Income $ 242,755 $ 247,905 $ 89,926 $ 130,513
========== ========== ========== ==========
Earnings per share of common
stock outstanding computed
on net income - basic and
fully diluted $ 0.04 $ 0.04 $ 0.02 $ 0.02
========== ========== ========== ==========
Weighted-average number
of shares outstanding 5,731,778 5,937,143 5,731,778 6,144,451
========== ========== ========== ==========
</TABLE>
The financial information presented herein has been prepared by management
without audit by independent certified public accountants.
6
<PAGE>
<TABLE>
<CAPTION>
Million Dollar Saloon, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Nine months ended September 30, 1999 and 1998
(Unaudited)
Nine months Nine months
ended ended
September 30, September 30,
1999 1998
------------- -------------
<S> <C> <C>
Cash Flows from Operating Activities
Net income $ 242,755 $ 247,905
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 77,582 83,074
Loss on sale of fixed assets 691 --
Common stock issued for consulting fees -- 69,700
Interest income from shareholders capitalized as principal -- (30,423)
(Increase) decrease in
Accounts receivable - trade 6,671 --
Federal income taxes receivable 91,653 37,248
Inventory 4,017 1,659
Prepaid expenses 21,590 (17,138)
Increase (decrease) in
Accounts payable and other accrued liabilities (3,432) 23,730
Tenant deposits -- --
Income taxes payable 3,527 8,592
--------- ---------
Net cash provided by operating activities 445,054 424,347
--------- ---------
Cash Flows from Investing Activities
Principal collections on note receivable 15,995 18,016
Net proceeds from sale of fixed assets -- --
Purchases of property and equipment (26,615) (66,319)
--------- ---------
Net cash used in investing activities (10,620) (48,303)
--------- ---------
Cash Flows from Financing Activities
Private placement of common stock -- 530,000
Principal payments on notes payable (131,544) (120,426)
Purchase of treasury stock -- (30,000)
Dividends paid (172,695) (175,328)
--------- ---------
Net cash used in financing activities (304,239) 204,246
--------- ---------
Increase in Cash and Cash Equivalents 130,195 580,290
Cash and cash equivalents at beginning of period 574,817 149,952
--------- ---------
Cash and cash equivalents at end of period $ 705,012 $ 730,242
========= =========
</TABLE>
- Continued -
The financial information presented herein has been prepared by management
without audit by independent certified public accountants.
7
<PAGE>
Million Dollar Saloon, Inc. and Subsidiaries
Consolidated Statements of Cash Flows - Continued
Nine months ended September 30, 1999 and 1998
(Unaudited)
Nine months Nine months
ended ended
September 30, September 30,
1999 1998
------------- -------------
Supplemental Disclosures of Interest
and Income Taxes Paid
Interest paid during the period $19,645 $36,904
======= =======
Income taxes paid (refunded) $ -- $82,319
======= =======
Supplemental Schedule of Non-Cash
Investing and Financing Activities
Declaration of third quarter
dividend at $0.01 per share,
respectively $57,318 $61,445
======= =======
The financial information presented herein has been prepared by management
without audit by independent certified public accountants.
8
<PAGE>
Million Dollar Saloon, Inc. and Subsidiaries
Notes to Financial Statements
Note 1 - Basis of Presentation
Million Dollar Saloon, Inc. (Company) was incorporated under the laws of the
State of Nevada on September 28, 1987. These financial statements reflect the
books and records of Million Dollar Saloon, Inc. (Nevada), Million Dollar
Saloon, Inc. (Texas), Furrh, Inc., Tempo Tamers, Inc., Corporation Lex and Don,
Inc. for the periods ended September 30, 1999 and 1998, respectively. All
significant intercompany transactions have been eliminated in combination. The
consolidated entities are referred to as Company.
During interim periods, the Company follows the accounting policies set forth in
its Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act
of 1934 on Form 10-KSB filed with the Securities and Exchange Commission. The
accompanying financial statements do not include all disclosures required by
generally accepted accounting principles. Users of financial information
provided for interim periods should refer to the annual financial information
and footnotes contained in its Annual Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934 on Form 10-KSB when reviewing the interim
financial results presented herein.
In the opinion of management, the accompanying interim financial statements,
prepared in accordance with the instructions for Form 10-QSB, are unaudited and
contain all material adjustments, consisting only of normal recurring
adjustments necessary to present fairly the financial condition, results of
operations and cash flows of the Company for the respective interim periods
presented. The current period results of operations are not necessarily
indicative of results which ultimately will be reported for the full fiscal year
ending December 31, 1999.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Note 2 - Summary of Significant Accounting Policies
a.) Cash and cash equivalents
-------------------------
The Company considers all cash on hand and in banks, including accounts in
book overdraft positions, certificates of deposit and other highly-liquid
investments with maturities of three months or less, when purchased, to be
cash and cash equivalents.
9
<PAGE>
Million Dollar Saloon, Inc. and Subsidiaries
Notes to Financial Statements - Continued
Note 3 - Common stock transactions
On March 19, 1998, the Company sold 530,000 shares of restricted, unregistered
common stock to an individual under a Stock Purchase Agreement (Agreement) at a
price of $1.00 per share for total proceeds to the Company of$530,000. The
Agreement also contains a "second closing" clause whereby the individual will
acquire an additional 400,000 shares of equivalent restricted, unregistered
common stock at $1.10 per share for gross proceeds of $440,000, on or before
July 15, 1998. On October 18, 1999, the Company's Board of Directors modified
and amended the ":second closing" clause whereby the purchaser may purchase from
time to time any or all of the 400,000 shares of common stock at $1.10 per share
and to extend the exercise period until the close of business on October 18,
2004. As of September 30, 1999, the individual has not purchased any shares of
common stock in accordance with the "second closing" portion of the Agreement.
Further, the Company has granted the individual the option to purchase an
additional 1,000,000 shares of restricted, unregistered common stock at a price
of $1.25 per share on or before February 28, 1999. The option expiration may be
accelerated if the Company's common stock is traded on the NASDAQ Small-Cap
Market or other national exchange and the closing bid price equals or exceeds
$1.75 per share for 10 consecutive trading days (Trading Period). In this event,
the expiration date of the option shall be the 90th day after the Trading Period
and the Company must notify the individual of the acceleration in writing. This
option has expired with no shares being purchased thereunder.
On March 19, 1998, concurrent with the Stock Purchase Agreement discussed above,
the Company entered into a Consulting Agreement with a separate individual for
consulting, advisory and management services to be performed as directed by the
Company's Board of Directors. The Consulting Agreement was for a term of one (1)
year and may be terminated by either party with ten (10) days written notice.
The compensation for the Consulting Agreement was paid in restricted,
unregistered common stock of the Company as follows: 150,000 shares as payment
for consulting, advisory and management services to be performed as directed by
the Company's Board of Directors and an additional 55,000 shares upon receipt of
the $530,000 discussed above. An additional 45,000 shares will be issued to the
consultant upon receipt of the $440,000, which was originally due on or before
July 15, 1998, as discussed above.
The Company, upon execution of the Consulting Agreement and receipt of the
$530,000 related to the Stock Purchase Agreement, issued the respective 150,000
and 55,000 shares due under the terms of the Consulting Agreement. These
transactions were valued at approximately $0.34 per share, or an aggregate
$69,700, which approximated the "fair value" of the Company's restricted stock
issued on the transaction date.
(Remainder of this page left blank intentionally.)
10
<PAGE>
Million Dollar Saloon, Inc. and Subsidiaries
Notes to Financial Statements - Continued
Note 4 - Segment Information
The Company operates with a centralized management structure and has two
identifiable operating segments: an adult entertainment lounge and restaurant
located in Dallas, Texas and commercial rental real estate located in Dallas and
Tarrant Counties, Texas. All revenues are generated from operations in these
geographic areas. The Company has a relationship whereby rental revenues from
various entities under common control comprise approximately 17.38% and 14.85%
of total revenues for the nine month period ended September 30, 1999 and 1998,
respectively.
<TABLE>
Restaurant Rental General and
facility real estate administrative Total
------------ ------------ -------------- -----------
<S> <C> <C> <C> <C>
Nine months ended September 30, 1999
- ------------------------------------
Revenue from external customers $ 2,448,838 $ 514,961 $ -- $ 2,963,799
Revenue (expenses) from/to
intercompany sources -- -- -- --
Interest income -- 5,358 9,615 14,973
Interest expense (1,593) -- 21,238 19,645
Depreciation and amortization 24,680 44,429 8,473 77,582
Income tax expense (benefit) (16,790) 112,972 (1,002) 95,180
Segment assets 419,023 1,939,850 465,153 2,824,026
Fixed asset expenditures 19,901 6,714 -- 26,615
Nine months ended September 30, 1998
- ------------------------------------
Revenue from external customers $ 2,549,190 $ 378,579 $ -- $ 2,927,769
Revenue (expenses) from/to
intercompany sources -- -- -- --
Interest income 7,658 30,116 7,312 45,086
Interest expense 2,471 34,433 -- 36,904
Depreciation and amortization 23,528 51,073 8,473 83,074
Income tax expense (benefit) 31,746 121,102 (24,689) 128,159
Segment assets 713,636 2,668,294 479,082 3,861,012
Fixed asset expenditures 44,301 22,018 -- 66,319
</TABLE>
Note 5 - Commitments
On July 9, 1999, Dewanna Ross, the Company's Chief Operating Officer, Vice
President of Operations, Secretary, Treasurer and a director, entered into an
Employment Agreement (Agreement) with the Company for a term of two years which
provides for a salary of $1,400 per week during the first year of the Agreement
and $1,500 per week during the second year of the Agreement.
11
<PAGE>
Part I - Item 2
Management's Discussion and Analysis of Financial Condition and
Results of Operations
(1) Caution Regarding Forward-Looking Information
This quarterly report contains certain forward-looking statements and
information relating to the Company that are based on the beliefs of the Company
or management as well as assumptions made by and information currently available
to the Company or management. When used in this document, the words
"anticipate," "believe," "estimate," "expect" and "intend" and similar
expressions, as they relate to the Company or its management, are intended to
identify forward-looking statements. Such statements reflect the current view of
the Company regarding future events and are subject to certain risks,
uncertainties and assumptions, including the risks and uncertainties noted.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described herein as anticipated, believed, estimated, expected or
intended. In each instance, forward-looking information should be considered in
light of the accompanying meaningful cautionary statements herein.
(2) Results of Operations
Bar and restaurant operations declined by approximately $100,000 between the
first nine months of 1999 compared to the first nine months of 1998. This
decline occurred in the third quarter of 1999 and is attributed to reduced
consumer traffic in the Company's facility. Total bar and restaurant sales for
the 1999 period were approximately $2.45 million as compared to approximately
$2.55 million for the 1998 period. Rental income increased by approximately
$136,000 for the same period from approximately $379,000 for the first nine
months of 1998 to approximately $515,000 for the first nine months of 1999. This
is due to scheduled increases in weekly rental income on the Company's
properties and the execution of a new lease renewal at higher rates in 1998.
The Company continues to seek effective marketing and advertising methods to
maintain and increase its bar and restaurant patronage.
Cost of sales decreased by approximately $24,000 during the first nine months of
1999 as compared to the same expenses for the same period in 1998. This overall
decline is a result of changes in variable operating costs for personnel as
offset by charges for upgrading and renovations to stage lighting and sound
systems in the Company's Dallas Texas entertainment facility. Gross profit
percentages increased slightly to 50.07% for the first nine months of 1999
versus 48.48% for the first nine months of 1998. Increased cost controls over
purchasing, inventory management protocols and labor management continue to
contribute to improving gross profit percentages.
General and administrative expenses increased by approximately $67,000 for the
nine months ended September 30, 1999 versus the first nine months of 1998. Of
this change, approximately $74,000 in increased general and administrative
expenses were attributable to increased legal and professional fees related to
general corporate business matters and the class action litigation, as discussed
in Part II - Item 1, Legal Proceedings, and increased administrative
compensation expenses on new employment agreements executed during the third
quarter. The Company continues to experience relatively constant expenditure
levels for other general operating expenses. Management continues to monitor its
expenditure levels to achieve optimum financial results.
12
<PAGE>
Net income before income taxes was approximately $338,000 for the first nine
months of 1999 versus approximately $376,000 for the first nine months of 1998.
After-tax net income was relatively constant at approximately $243,000 for the
first nine months of 1999 and approximately $247,000 for the first nine months
of 1998. The Company experienced earnings per share of approximately $0.04 per
share for the first nine months of both 1999 and 1998.
(2) Liquidity
As of September 30, 1999, the Company has working capital of approximately
$447,000 as compared to approximately $441,000 at December 31, 1998 and
approximately $577,000 at September 30, 1998. The Company achieved positive cash
flows from operations of approximately $445,000 for the first nine months of
1999 versus approximately $424,000 for the first nine months of 1998. The
Company's working capital position was impacted by the increased calculation of
current maturities of long-term debt for 1999 and the payment of income tax
estimates during 1998 which were carried forward into 1999.
The Company has identified no significant capital requirements for the current
annual period. Liquidity requirements mandated by future business expansions or
acquisitions, if any are specifically identified or undertaken, are not readily
determinable at this time as no substantive plans have been formulated by
management.
The Company paid cash dividends of an aggregate of approximately $173,000 and
$175,000 during the first nine months of 1999 and 1998, respectively and
declared dividends of approximately $57,000 to be paid in the fourth quarter of
1999 and 1998, respectively. Future operating liquidity, debt service and
dividend payments, if any, are expected to be sustained from continuing
operations.
(3) Year 2000 Considerations
The Year 2000 (Y2K) date change is believed to affect virtually all computers
and organizations. The Company has undertaken a comprehensive review of its
information systems, including personal computers, software and peripheral
devices, and its general communications systems. The Company has no direct
electronic links with any customer or supplier. In addition, the Company has
held discussions with certain of its software suppliers with respect to the Y2K
date change. The Company has completed its detailed review, as a preliminary
assessment and the Company believes, as of the date of this filing, that it will
not be required to modify or replace significant portions of its computer
hardware or software and any such modifications or replacements are, or will be,
readily available. The Company has completed its detailed review and completed
all modifications, upgrades or replacements during the third quarter of 1999.
The total expenditure for this endeavor was less than $5,000 and not material to
the Company's financial statements or operations.
The Company has held discussions with its significant suppliers, shippers,
customers and other external business partners related to their readiness for
the Y2K date change. There can be no assurance until January 1, 2000, however,
that all of the Company's systems, and the systems of its suppliers, shippers,
customers or other external business partners will function adequately.
13
<PAGE>
Part II - Other Information
Item 1 - Legal Proceedings
The Company is one of several defendants in Cause No. DV99-02585-L; Roy D.
Stedham v. The Million Dollar Saloon, et al.; 193rd District Court, Dallas
County, Texas which is alleged to be a class action seeking monetary damages
for violation of the Texas Finance Code concerning overcharges for purchases
of certain items by the use of a credit card. The Company has denied the
allegations and intends to vigorously contest the claims asserted. The
Company does not believe that the plaintiff/class will prevail on their
claims. The monetary damages sought, plus attorneys' fees, in management's
opinion does not constitute an amount that is material to the Company.
Item 2 - Changes in Securities
None
Item 3 - Defaults on Senior Securities
None
Item 4 - Submission of Matters to a Vote of Security Holders
The Company has held no regularly scheduled, called or special meetings of
shareholders during the reporting period.
Item 5 - Other Information
None
Item 6 - Exhibits and Reports on Form 8-K
Exhibit 27 Financial Data Schedule
Form 8-K None
(Remainder of this page left blank intentionally)
14
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Million Dollar Saloon, Inc.
October 27 , 1999 /s/ Dewanna Ross
-------- -----------------------------------
Dewanna Ross
President, Chief Operating Officer
and Director
October 27 , 1999 /s/ Ronald W. Johnston
-------- -----------------------------------
Ronald W. Johnston
Chief Financial Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
</LEGEND>
<CIK> 0001002396
<NAME> Million Dollar Saloon, Inc.
<MULTIPLIER> 1
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<EXCHANGE-RATE> 1
<CASH> 705012
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 14387
<CURRENT-ASSETS> 778749
<PP&E> 3551150
<DEPRECIATION> 1596986
<TOTAL-ASSETS> 2824026
<CURRENT-LIABILITIES> 332012
<BONDS> 0
0
0
<COMMON> 5732
<OTHER-SE> 2358712
<TOTAL-LIABILITY-AND-EQUITY> 2824026
<SALES> 2963799
<TOTAL-REVENUES> 2963799
<CGS> 1479889
<TOTAL-COSTS> 1160257
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 19645
<INCOME-PRETAX> 337935
<INCOME-TAX> (95180)
<INCOME-CONTINUING> 242755
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 242755
<EPS-BASIC> 0.04
<EPS-DILUTED> 0.04
</TABLE>
