SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q/A1
[ x ] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1997
[ ] TRANSITION REPORT UNDER SECTION 10 OR 15(d) OF THE EXCHANGE
ACT OF 1934
Commission File Number 0-28168
JJFN Services, Inc.
(Exact name of Registrant as specified in its charter)
Delaware 11-3289981
(State or other jurisdiction (I.R.S. Identification number)
of incorporation or organization)
2500 Military Trail North, Suite 260, Boca Raton, Florida 33431
(Address of principal executive offices)
(561)995-0043
(Registrant's Telephone Number, Including Area Code)
Check whether the registrant(1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or
for such shorter period that the registrant was required to file such
report(s), 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 last practicable date.
Outstanding Equity Securities at April 7, 1997
Class of Securities Outstanding Shares
Common Stock, $.001 par value, 16,659,990 shares
Preferred Stock, $.01 par value, 400,000 shares
<PAGE>
JJFN SERVICES, INC.
INDEX
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements Page Number
Condensed Consolidated Balance Sheets as of 3
March 31, 1997 (unaudited) and June 30, 1996.
Condensed Consolidated Statement of Operations 4
for the three and nine months ended March 31, 1997, and
Predecessor three and nine months ended March 31, 1996.
(unaudited)
Condensed Consolidated Statement of Cash Flows 5
for the nine months ended March 31, 1997, and
Predecessor nine months ended March 31, 1996.
(unaudited)
Notes to Condensed Consolidated Financial Statements 6-7
(unaudited)
Item 2. Management's Discussion and Analysis of Financial 8-12
Condition and Results of Operations.
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed for the three months ended
March 31, 1997.
Signatures 13
Exhibit No.
11 Computation of earnings per share. 14
<PAGE>
<TABLE>
JJFN SERVICES, INC.
AND SUBSIDIARY
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31 June 30
ASSETS 1997 1996
----------- -----------
<S> <C> <C>
Revenue producing assets:
Model homes on lease $22,342,583 $11,333,561
Less: accumulated depreciation (363,462) (88,027)
----------- -----------
Model homes on lease, net 21,979,121 11,245,534
Real estate under contract 8,591,956 -
----------- -----------
Total revenue producing assets 30,571,077 11,245,534
----------- -----------
Other assets:
Cash 301,508 770,723
Marketable securities and related receivables - 1,462,500
Net assets realizable on divestiture 1,312,500 832,068
Deferred charges and other assets 553,809 416,563
----------- -----------
Total other assets 2,167,817 3,481,854
----------- -----------
Total assets $32,738,894 $14,727,388
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable $23,351,149 $ 6,477,271
Notes payable 775,907 -
Accounts payable & accrued expenses 392,245 131,739
Unearned rental revenue 208,347 60,136
----------- -----------
Total liabilities 24,727,648 6,669,146
----------- -----------
Stockholders' equity:
Convertible preferred stock, $.01 par value
25,000,000 shares authorized
400,000 shares issued and outstanding 4,000 4,000
Common stock, $.001 par value
50,000,000 shares authorized
16,659,990/15,959,990 shares issued and outstanding 16,660 15,960
Additional paid-in capital 8,218,235 8,223,235
Accumulated deficit (227,649) (184,953)
----------- -----------
Total stockholders' equity 8,011,246 8,058,242
----------- -----------
Total liabilities and stockholders' equity $32,738,894 $14,727,388
=========== ===========
See accompanying notes.
<PAGE> (3)
JJFN SERVICES, INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months and Nine Months Ended March 31, 1997 and
Predecessor Three Months and Nine Months Ended March 31, 1996
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
1997 1996 1997 1996
--------- --------- --------- ---------
Revenues:
Lease revenue & option fees $ 868,251 $ - $1,957,854 $ -
Construction revenue - 48,750 - 48,750
Model Home sales 633,207 - 1,916,376 -
Interest Income 60,137 2,629 72,713 2,629
--------- --------- --------- ---------
Total Revenues 1,561,595 51,379 3,946,943 51,379
--------- --------- --------- ---------
Costs and expenses:
Interest expense 493,970 36,932 1,094,959 61,587
Cost of model homes sold 608,709 - 1,865,186 -
Depreciation and amortization 203,375 16,682 484,196 16,682
Construction costs - 33,018 - 33,018
Corporate 353,142 48,314 775,731 231,871
--------- --------- --------- ---------
Total Operating Expenses 1,659,196 134,946 4,220,072 343,158
--------- --------- --------- ---------
Loss from continuing operations (97,601) (83,567) (273,129) (291,779)
--------- --------- --------- ---------
Loss from divested operations - - ( 54,444) -
Gain on disposal of divested - - 284,876 -
operations
--------- --------- --------- ---------
Net loss (97,601) (83,567) (42,697) (291,779)
--------- --------- --------- ---------
Preferred stock distribution - - 5,000 -
--------- --------- --------- ---------
Loss applicable to
common shareholders $ (97,601) $ (83,567) $ (47,697) $(291,779)
========= ========= ========= =========
Earnings (Loss) per share data:
Continuing operations $ ( 0.01) $ (0.03) $ ( 0.02) $ (0.21)
Divested operations - - 0.01 -
--------- --------- --------- ---------
Net income (loss) $ (0.01) (0.03) $ (0.01) $ (0.21)
========= ========= ========= =========
Weighted average number 16,659,990 3,099,868 16,514,370 1,381,738
of shares
See accompanying notes.
(4)
<PAGE>
JJFN SERVICES, INC.
AND SUBSIDIARY
<CAPTION>
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Nine Months Ended March 31, 1997 and
Predecessor Nine Months Ended March 31, 1996
(Unaudited)
Nine Months Nine Months
Ended Ended
3/31/97 3/31/96
------------ ------------
<S> <C> <C>
Net Loss $ (42,697) $ (291,779)
----------- ------------
Adjustments to reconcile net loss to net cash
provided by operating activities:
Amortization expense 171,254 6,876
Depreciation expense 312,941 9,806
Stock issued for consulting services - 140,000
Gain on sale of model homes (51,190) -
Gain on disposal of divested operations (284,876) -
Changes in assets and liabilities:
Decrease in deferred charges and other assets 98,436 -
Increase in contract receivables - (48,750)
Increase in other assets - (63,609)
Increase in accounts payable and accrued expenses 270,506 125,792
Increase in unearned rental revenue 148,211 -
Increase in net assets realizable on divestiture (195,556) -
----------- ----------
Total adjustments 469,726 170,115
----------- ----------
Net cash provided by operating activities 427,029 (121,664)
----------- ----------
Cash flows from investing activities
Purchase of model homes (4,056,630) -
Proceeds from sale of model homes 1,850,970 -
Proceeds from sale of marketable securities 239,250 -
Capital expenditures (23,643) (7,754)
Investment in real estate - (353,446)
Deferred offering costs - (15,000)
Cash acquired in asset acquisition - 339,900
----------- ----------
Net cash used in investing activities (1,990,053) (36,300)
----------- ----------
Cash flows from financing activities:
Proceeds from mortgages payable 1,450,288 -
Principal payments on mortgages payable (1,679,493) -
Deferred financing costs (63,857) -
Deferred offering costs (53,829) -
Proceeds from stockholder loans - 12,500
Proceeds from notes payable 1,455,000 100,000
Proceeds from issuance of common stock & options 700 3,725,000
Loan to affiliate - (911,626)
Principal payments on long term debt - (1,691)
Preferred distribution (15,000) -
----------- -----------
Net cash provided by financing activities 1,093,809 2,924,183
----------- -----------
Net decrease in cash (469,215) 2,766,219
Cash at beginning of period 770,723 -
----------- -----------
Cash at end of period $301,508 $2,766,219
=========== ===========
Supplemental disclosure of cash flow information:
Interest paid - $973,944 $15,033
</TABLE>
See accompanying notes.
(5)
<PAGE>
JJFN SERVICES, INC.
AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1997
(unaudited)
Note 1. Unaudited Interim Financial Statements
The accompanying unaudited financial statements have been prepared in
accordance with the instructions for Form 10-Q and do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments, consisting only of normal recurring adjustments considered
necessary for a fair presentation, have been included. Operating results
for any quarter are not necessarily indicative of the results for any other
quarter or for the full year.
These statements should be read in conjunction with the financial statements
of JJFN Services, Inc. and notes thereto included in the Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 1996, and the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 1996.
Note 2. Commitments & Contingencies
Model home purchase commitments
The Company has commitments to purchase approximately $16,150,000 (75 model
homes) from two major, publicly traded homebuilders in April 1997.
Verbal commitments have been made to purchase approximately $8,000,000 (48
model homes) from a major publicly traded homebuilder in July 1997.
Model home sales contracts
The Company has two sales contracts pending on model homes.
Financing Activities
The Company has engaged the U.S. subsidiary of a major foreign financial
institution, to provide financial advisory and investment banking services,
in connection with a revolving secured credit facility and securitization of
(i) Model Home Lease Receivables and (ii) Real Estate Contract Receivables.
The preliminary Term Sheet provides for a $25,000,000 secured revolving credit
facility at Libor plus a spread. It is contemplated that the facility may
increase to $100,000,000 after the initial closing. This arrangement is
subject to formal credit approval, completion of due diligence, and
documentation.
<PAGE>
(6)
Development Funding Requirements
The Company has development funding commitments for the 70 acre tract of land
in Boca Raton, Florida, purchased in September 1996. The Company is scheduled
to fund $5,503,000 as outlined below:
April 1997 $ 275,150
May 1997 275,150
June 1997 440,240
July 1997 660,360
August 1997 770,420
September 1997 770,420
October 1997 770,420
November 1997 660,360
December 1997 550,300
January 1998 330,180
----------
Total $5,503,000
----------
Real Estate Under Contract Commitments
The Company has executed a letter of intent with a major publicly traded
homebuilder and real estate developer to acquire 4-5 tracts of land having a
fully developed cost of $75,000,000 to $85,000,000. The agreement provides
for a unit takedown schedule of finished lots over a period not to exceed 36
months. The closing is subject to completion of due diligence and formal
documentation among other events.
In connection with the above transaction, the Company has accepted a proposal
from a U.S. subsidiary of a major foreign financial institution to act as
underwriter or placement agent for the asset backed securities. The
institution will sponsor, prepare and present to the rating agencies the
proposed structure and transaction details, with the goal of obtaining either
multi-tranche or single-tranche investment grade ratings for the securities.
The closing is subject to completion of customary due diligence and approvals.
(7)
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
The Company is engaged in two lines of business.
1) The purchase and leaseback on a "triple net" basis of fully furnished
model homes complete with options and upgrades to major homebuilders
and real estate developers.
2) The real estate contract acquisition, development and sale program
for major homebuilders and real estate developers. The Company
purchases the real estate, simultaneously enters into a bonded (not to
exceed) development contract with the builder, who then develops the real
estate. The builder purchases the finished lots from the Company
on a scheduled basis.
Since its inception, the Company has purchased a total of 129 model homes
and sold 15, resulting in a portfolio of 114 model homes owned at March 31,
1997. All of the Company's clients are major publicly traded homebuilders.
<TABLE>
A summary of the operating results of JJFN Services, Inc. and subsidiary for
the three months ended March 31, 1997, and March 31, 1996 are presented below.
<CAPTION>
Three Months Three Months
Ended Ended
March 31 March 31
1997 % 1996 %
--------------------------------
<S> <C> <C> <C> <C>
Revenues:
Lease revenue & option fees $ 868,251 56% $ 94,095 97%
Model home sales 633,207 41% - -
Interest income 60,137 3% 2,721 3%
--------------------------------
Total revenues $1,561,595 100% 96,816 100%
Costs and expenses:
Interest expense 493,970 32% 69,595 72%
Cost of model homes sold 608,709 39% - -
Corporate 353,142 23% 83,362 86%
--------------------------------
Total costs and expenses 1,455,821 93% 152,957 158%
--------------------------------
Income(loss) before
depreciation & amortization 105,774 7% (56,141)(58%)
Depreciation & amortization 203,375 13% 33,012 34%
--------------------------------
Net Loss $ (97,601) (6%) $(89,153)(92%)
================================
</TABLE>
<PAGE> (8)
Financial data for the registrant's predecessor, JJFN Holdings, Inc., is not
presented for the nine months ended March 31, 1996. The predecessor had
limited revenues and expenses which are not relevant to the operations of
JJFN Services, Inc. or to any comparison of its operating results.
Results of Operations:
Three Months Ended March 31, 1997 compared to March 31, 1996.
For the period from January 1, 1997 through March 31, 1997, the Registrant had
revenues of $1,561,595 of which lease rentals on model homes totaled $610,492,
revenues from the sale of model homes were $633,207, and revenues from option
fees were $257,759. Net loss for the period was $97,601. Depreciation and
amortization for the quarter totaled $203,375 resulting in a positive cash
income from operations of $105,774.
The Company's revenues from rental income increased approximately $516,000 (a
550% increase) during the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996. This increase is due to additional
lease revenues generated from the purchase of $18,945,000 in model homes in
the twelve months ended March 31, 1997.
Real Estate option fee revenues of $257,759 were generated from the real
estate under contract program, for the quarter ended March 31, 1997. The
Company generated no option fee revenues for the quarter ended March 31, 1996.
Corporate costs increased from $83,362 for the quarter ended March 31, 1996
to $353,142 for the quarter ended March 31, 1997. This increase was
attributable to the hiring of additional personnel and the selling, general and
administrative costs associated with generating the increased revenue levels.
Corporate costs as a percentage of total revenues decreased 62% from 86%
for the quarter ended March 31, 1996, to 24% for the quarter ended March 31,
1997.
Nine Months Ended March 31, 1997 compared to March 31, 1996.
Financial data for the registrant's predecessor, JJFN Holdings, Inc., is not
presented for the nine months ended March 31, 1996. The predecessor had
limited revenues and expenses which are not relevant to the operations of
JJFN Services, Inc. or to any comparison of its operating results.
Model homes on lease net of accumulated depreciation have increased to
$21,979,121 at March 31, 1997 from $5,701,018 at March 31, 1996, a 285%
increase.
<TABLE>
A breakdown of lease rental revenues by state is as follows:
<CAPTION>
Model Home Lease Revenues # Model Homes
State Cost at 3/31/97 1/1/97 to 3/31/97 Owned at 3/31/97
<S> <C> <C> <C>
Florida $13,822,857 $ 413,851 77
Colorado $ 3,799,355 $ 109,480 18
Virginia $ 1,495,847 $ 42,297 6
North Carolina $ 737,288 $ 22,119 3
Texas $ 910,481 $ 20,710 5
Georgia $ 1,576,755 $ 2,035 5
----------- --------- ---
Total $22,342,583 $ 610,492 114
=========== ========= ===
</TABLE>
(9)
<PAGE>
The average purchase price of model homes acquired by the Registrant was
approximately $196,000. For the quarter ended March 31, 1997, the Registrant
has sold four model homes for total sales price of $ 633,207 less costs of
sales of $608,709 for a net gain of $24,498.
The following is an analysis of the Company's return on investments from the
sale-leaseback program and the real estate under contract program as of March
31, 1997.
<TABLE>
Return on Investment - Sale-Leaseback Program
- ---------------------------------------------
<CAPTION>
Monthly Monthly Net Annual
Model Home Units Purchase Bank Equity Rental Interest Monthly Return On
Location Purchased Price Financing Contribution Revenue Expense Revenue Invest.
- -------- --------- ----- --------- ------------ ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Florida 77 13822857 10200988 3621869 138229 74704 63525 21.0%
Colorado 18 3799355 2776315 1023040 37994 21401 16593 19.5%
Virginia 6 1495847 1034346 461501 14958 7610 7348 19.1%
North Carolina 3 737288 505800 231488 7373 3794 3579 18.6%
Texas 5 910481 709100 201381 9105 5171 3934 23.4%
Georgia 5 1576755 1249600 327155 15768 9632 6135 22.5%
--- -------- -------- ------- ------ ----- ----- ----
Totals 114 22342583 16476149 5866434 223426 122311 101115 20.7%
=== ======== ======== ======= ====== ===== ===== ====
Return on Investment - Real Estate Under Contract Program
- ------------------------------------------------------------------------
Monthly Net Annual
Land Purchase Bank Equity Monthly Interest Monthly Return On
Location Price Financing Contribution Revenue Expense Revenue Invest.
- -------- ----- --------- ------------ ------- ------- ------ ------
Florida 8591956 6875000 1716956 85920 52995 32925 23.0%
======= ======= ======= ===== ===== ===== ====
</TABLE>
Liquidity and Capital Resources
The Registrant's principal business, leasing of model homes and real estate
under contract, is a capital-intensive operation requiring constant infusions
of cash as the number and size of transactions in which the Registrant is
involved increases. To date, this business has been financed by capital
contributed and loans made by shareholders, secured loans from banks, and an
offshore private placement.
These capital contributions, loans and offering have been adequate to permit
the Registrant to carry on operations to date. However, in order to finance
the expansion of operations over the coming fiscal year, additional funds
must be raised through the issuance of debt or equity securities. To fill
this need, the Registrant anticipates completing a securities offering of
$10-25 million prior to the end of 1997. The net proceeds of this offering,
together with new financings and existing cash of approximately $300,000,
should enable the Company to finance its growing level of operations.
(10)
<PAGE>
The Company has engaged the U.S. subsidiary of a major foreign financial
institution, to provide financial advisory and investment banking services,
in connection with a revolving secured credit facility and securitization of
(i) Model Home Lease Receivables and (ii) Real Estate Contract Receivables.
The preliminary Term Sheet provides for a $25,000,000 secured revolving credit
facility at Libor plus a spread. It is contemplated that the facility may
increase to $100,000,000 after the initial closing. This arrangement is
subject to formal credit approval, completion of due diligence, and
documentation.
The Company has executed a letter of intent with a major publicly traded
homebuilder and real estate developer to acquire 4-5 tracts of land having a
fully developed cost of $75,000,000 to $85,000,000. The agreement provides
for a unit takedown schedule of finished lots over a period not to exceed 36
months. The closing is subject to completion of due diligence and formal
documentation among other events.
In connection with the above transaction, the Company has accepted a proposal
from a U.S. subsidiary of a major foreign financial institution to act as
underwriter or placement agent for the asset backed securities. The
institution will sponsor, prepare and present to the rating agencies the
proposed structure and transaction details, with the goal of obtaining either
multi-tranche or single-tranche investment grade ratings for the securities.
The closing is subject to completion of customary due diligence and approvals.
The Company has commitments to purchase approximately $16,150,000 (75 model
homes) from two major, publicly traded homebuilders in April 1997.
Verbal commitments have been made to purchase approximately $8,000,000 (48
model homes) from a major publicly traded homebuilder in July 1997.
The Registrant expects that it will be able to finance these transactions and
others it currently is negotiating through available cash from the sources
described above and from other secured bank loans. In addition, the
Registrant is exploring the possibility of selling, either publicly or
privately, securities backed by its model home inventory and real estate
and development contracts. There can be no assurance, however, that any of
the anticipated sources of funding will ultimately be available to the
Registrant or that other financing will be available on acceptable terms.
Cash Flow - Nine Months Ended March 31, 1997.
Net cash provided in operating activities comprised net loss of $42,697, net
adjustments for non-cash items of $148,128, plus a net change in other
operating assets and liabilities of $321,597.
Net cash used in investing activities comprised the purchases of $4,056,630 in
model homes and $23,643 in other assets, offset by the sale of $1,850,970 in
model homes and $239,250 in proceeds from the sale of marketable securities.
Net cash provided by financing activities comprised proceeds from mortgages
payable of $1,450,288, notes payable of $1,455,000, and issuance of common
stock of $700, offset by principal payments on mortages payable of $1,679,493
and deferred costs of $132,686.
Trends in Operations
The Registrant's operations are currently accelerating at a rapid rate. Such
growth has resulted from the ongoing acquisition of model homes under lease
and from the implementation of the Company's new land acquisition and contract
development program. Both programs have generated significant interest from
national home builders and real estate developers. The Company's successful
implementation of these programs has led to increased credit facilities.
For the quarter ended March 31, 1997, purchases of model homes exceeded
$4,750,000, increasing total model homes on lease at March 31, 1997 to
over $22,000,000. Monthly lease rental revenues on these assets will be in
excess of $220,000 per month.
(11)
<PAGE>
Forward Looking Statements
This report contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") concerning
the Company's operations, economic performance and financial conditions,
including, in particular, the likelihood of the Company's success in
developing and bringing to market the products which it currently has under
development. These statements are based upon a number of assumptions and
estimates which are inherently subject to significant uncertainties, and
contingencies, many of which are beyond the control of the Company and
reflect future business decisions which are subject to change. Some of
these assumptions inevitably will not materialize, and unanticipated events
will occur which will affect the Company's results. Consequently, actual
results will vary from the statements contained herein and such variance may
be material. Prospective investors should not place undue reliance on this
information.
<PAGE>
(12)
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 of the
undersigned thereunto duly authorized.
JJFN SERVICES, INC.
By: /s/John P. Kushay
John P. Kushay, Treasurer
Chief Financial Officer and
Chief Accounting Officer
(Duly Authorized Officer)
Date: April 15, 1997
(13)
<PAGE>
JJFN Services, Inc. - Form 10-Q
Nine Months Ended March 31, 1997
<TABLE>
Exhibit 11
<CAPTION>
Three Months Three Months Nine Months
Ended Ended Ended
March 31 March 31 March 31
1997 1996 1997
------------ ------------ -----------
<S> <C> <C> <C>
Primary
Income (loss) from
Continuing operations $ (97,601) $ (89,153) $ (278,129)
Discontinued operations - - 230,432
------------ ------------ -----------
Net loss applicable to common stock (97,601) (89,153) ( 47,697)
============ ============ ===========
Weighted average number of common 16,659,990 10,000,000 16,514,370
shares outstanding
Income(loss) per common share
Continuing operations (0.01) (0.01) (0.02)
Discontinued operations - - 0.01
------------ ------------ -----------
Net loss $ (0.01) (0.01) (0.01)
============ ============ ===========
Primary loss per common share does not include the effect of common stock
equivalents because the effect of such inclusion would be to reduce loss per
common share.
Company organized november 2, 1995, nine month comparative figures not available
The information for the three months ended March 31, 1997 are for JJFN Services,
Inc. and not for the predecessor company as shown in the statement of
operations.
(14)
<PAGE>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
[TYPE] EX-27
[TEXT]
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 301,508
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 305,332
<PP&E> 30,934,539
<DEPRECIATION> 363,462
<TOTAL-ASSETS> 32,738,894
<CURRENT-LIABILITIES> 24,727,648
<BONDS> 0
0
4,000
<COMMON> 16,660
<OTHER-SE> 7,990,586
<TOTAL-LIABILITY-AND-EQUITY> 32,738,894
<SALES> 3,874,230
<TOTAL-REVENUES> 3,946,943
<CGS> 3,444,341
<TOTAL-COSTS> 3,444,341
<OTHER-EXPENSES> 775,731
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (42,697)
<INCOME-TAX> 0
<INCOME-CONTINUING> (273,129)
<DISCONTINUED> 230,432
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (42,697)
<EPS-PRIMARY> (0)
<EPS-DILUTED> 0
</TABLE>
