<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997
OR
[_] TRANSITION REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE TRANSITION PERIOD FROM _________ TO __________.
333-09437
(COMMISSION FILE NUMBER)
COBBLESTONE HOLDINGS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 33-0597600
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
3702 VIA DE LA VALLE, SUITE 202
DEL MAR, CA 92014
(ADDRESS OF PRINCIPAL OFFICES) (ZIP CODE)
(619) 794-2602
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NOT APPLICABLE
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST
PERIOD)
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 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 [ ].
As of August 14, 1997, 1,722,449 shares of Cobblestone Holdings, Inc.
Common Stock, par value $.01 per share, were outstanding.
<PAGE>
COBBLESTONE HOLDINGS, INC.
THIRD QUARTER REPORT ON FORM 10-Q
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets -
June 30, 1997 (Unaudited) and September 30, 1996.... 1
Consolidated Statements of Operations (Unaudited) -
Three and nine months ended June 30, 1997 and 1996.. 2
Consolidated Statements of Cash Flows (Unaudited) -
Nine months ended June 30, 1997 and 1996............ 3
Notes to Consolidated Financial Statements
(Unaudited) - June 30, 1997......................... 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................. 6
Part II. Other Information
Item 6. Exhibit and Reports on Form 8-K...................... 10
Signatures............................................................... 11
</TABLE>
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
COBBLESTONE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30, SEPTEMBER 30,
1997 1996
------------- --------------
(UNAUDITED) (NOTE)
<S> <C> <C>
Current assets:
Cash and cash equivalents ................................................. $ 902,645 $ 6,578,946
Accounts receivable, net .................................................. 3,613,392 2,868,190
Current portion of notes receivable, net .................................. 2,011,887 1,729,875
Inventory ............................................................... 2,606,280 2,202,481
Prepaid expenses and other current assets ................................. 963,008 1,170,884
------------ ------------
Total current assets ................................................... 10,097,212 14,550,376
Property, equipment and leasehold interests, net ........................... 155,843,827 139,541,003
Notes receivable, net ...................................................... 3,958,863 3,889,857
Intangible assets, net ..................................................... 3,687,636 3,898,185
Other assets, net .......................................................... 6,546,568 6,618,684
------------ ------------
$180,134,106 $168,498,105
============ ============
LIABILITIES AND NET CAPITAL DEFICIENCY
Current liabilities:
Accounts payable .......................................................... $ 1,549,059 $ 4,101,736
Accrued payroll and related expenses ...................................... 1,728,322 2,091,719
Accrued interest expense .................................................. 980,944 2,683,332
Accrued property taxes .................................................... 1,041,770 1,364,891
Deferred revenue .......................................................... 1,903,249 1,460,028
Current portion of long-term debt and capital lease obligations ........... 298,407 738,981
Current portion of deferred purchase price ................................ 205,353 387,792
Income taxes payable ...................................................... 76,884 94,431
Other current liabilities ................................................. 1,280,613 1,394,352
------------ ------------
Total current liabilities .............................................. 9,064,601 14,317,262
Long-term debt and capital lease obligations ............................... 129,730,914 108,494,952
Note payable to stockholder/officer ........................................ 230,483 224,787
Deferred purchase price .................................................... 589,135 730,941
Long-term deferred revenue ................................................. 2,196,100 2,423,707
Deferred income taxes ...................................................... 4,184,000 4,184,000
Minority interest .......................................................... 378,585 380,985
Redeemable preferred stock, $.01 par value
Authorized shares--10,000,000
Issued and outstanding shares--5,220,376 at June 30, 1997
and September 30, 1996
Liquidation preference of $43,075,700 at June 30, 1997 and
September 30, 1996 ...................................................... 42,241,169 42,241,169
Net capital deficiency:
Common stock, $.01 par value:
Authorized shares--5,000,000
Issued and outstanding shares--1,722,449 at June 30, 1997 and
September 30, 1996....................................................... 17,224 17,224
Paid-in capital ........................................................... 5,388,983 5,388,983
Accumulated deficit ....................................................... (13,887,088) (9,905,905)
------------ ------------
Net capital deficiency....................................................... (8,480,881) (4,499,698)
------------ ------------
$180,134,106 $168,498,105
============ ============
</TABLE>
Note: The balance sheet at September 30, 1996 has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting principles
for financial statements.
See accompanying notes.
1
<PAGE>
COBBLESTONE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- --------------------------------
1997 1996 1997 1996
--------------------------- --------------------------------
<S> <C> <C> <C> <C>
Operating revenues:
Golf revenues ............................... $17,099,077 $12,022,824 $ 42,858,358 $31,760,988
Food and beverage revenues .................. 4,006,414 2,791,531 9,768,159 6,886,496
Pro shop sales .............................. 1,758,654 1,269,682 4,646,591 3,403,735
Other ....................................... 1,030,282 625,153 2,304,137 1,664,652
----------- ----------- ------------ -----------
Total operating revenues ................. 23,894,427 16,709,190 59,577,245 43,715,871
Operating expenses:
Golf course operations ...................... 13,718,253 9,604,269 36,040,363 25,860,509
Cost of food and beverage ................... 1,326,162 915,613 3,157,654 2,331,328
Cost of pro shop sales ...................... 1,466,384 846,057 3,325,300 2,259,311
General and administrative .................. 988,804 872,254 2,905,133 2,595,799
Depreciation and amortization ............... 2,017,377 1,834,844 6,473,904 5,353,224
----------- ----------- ------------ -----------
Total operating expenses ................. 19,516,980 14,073,037 51,902,354 38,400,171
----------- ----------- ------------ -----------
Income from operations ........................ 4,377,447 2,636,153 7,674,891 5,315,700
Interest expense, net ......................... (4,006,564) (3,074,790) (11,381,835) (8,192,817)
----------- ----------- ------------ -----------
Income (loss) before income taxes and
extraordinary item .......................... 370,883 (438,637) (3,706,944) (2,877,117)
Provision for income taxes .................... 190,923 114,080 274,239 137,480
----------- ----------- ------------ -----------
Income (loss) before extraordinary item ....... 179,960 (552,717) (3,981,183) (3,014,597)
Extraordinary item ............................ -- (3,520,401) -- (3,520,401)
----------- ----------- ------------ -----------
Net income (loss) ............................. $ 179,960 $(4,073,118) $ (3,981,183) $(6,534,998)
=========== =========== ============ ===========
</TABLE>
See accompanying notes.
2
<PAGE>
COBBLESTONE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
JUNE 30,
--------------------------
1997 1996
--------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net loss .............................................................................. $ (3,981,183) $ (6,534,998)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization ........................................................ 6,937,346 5,995,262
Loss on early extinguishment of debt ................................................. -- 3,520,401
Deferred interest .................................................................... 3,375,827 340,599
Provision for doubtful accounts ...................................................... (410,013) (395,741)
Changes in assets and liabilities:
Notes and accounts receivable ...................................................... (225,007) (691,142)
Inventory .......................................................................... (298,694) (502,160)
Prepaid expenses and other assets .................................................. (280,889) 89,959
Accounts payable, accrued liabilities and deferred
revenue............................................................................. (5,371,826) (2,009,547)
---------- ---------
Net cash used in operating activities ................................................. (254,439) (187,367)
INVESTING ACTIVITIES
Acquisition-related costs ............................................................. (15,058,158) (6,195,718)
Additions to property, equipment and leasehold interests .............................. (5,553,286) (6,735,666)
---------- ------------
Net cash used in investing activities ................................................. (20,611,444) (12,931,384)
FINANCING ACTIVITIES
Proceeds from long-term debt .......................................................... 20,726,000 107,262,650
Debt issuance costs and other debt-related costs ...................................... -- (4,535,061)
Principal payments on long-term debt and capital leases ............................... (5,212,173) (89,524,208)
Payments on deferred purchase price ................................................... (324,245) (376,979)
Proceeds from issuance of common stock ................................................ -- 1,312,798
---------- ------------
Net cash provided by financing activities ............................................. 15,189,582 14,139,200
Net increase (decrease) in cash and cash equivalents .................................. (5,676,301) 1,020,449
Cash and cash equivalents at beginning of period ...................................... 6,578,946 820,608
---------- ------------
Cash and cash equivalents at end of period ............................................ $ 902,645 $ 1,841,057
========== ============
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest ............................................................................. $ 9,113,819 $ 6,583,722
========== ============
Income taxes, net .................................................................... $ 291,706 $ 1,393,137
========== ============
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Capital leases entered into ........................................................... $ 2,017,550 $ 2,308,347
========== ============
</TABLE>
See accompanying notes.
3
<PAGE>
COBBLESTONE HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(UNAUDITED)
1. BASIS OF PRESENTATION
Cobblestone Holdings, Inc. (the "Company", a Delaware corporation, was
incorporated on January 18, 1994 by shareholders of Cobblestone Golf Group, Inc.
("CGGI"). On January 31, 1994, the Company issued shares of its common and
preferred stock in exchange for all of the shares of CGGI. The Company, through
its wholly-owned subsidiary CGGI, owns and operates golf courses in the United
States, with a current portfolio of 24 golf properties including private country
clubs, semi-private clubs and public (or daily fee) courses. The Company's
courses are concentrated in clusters near metropolitan areas primarily in the
Sunbelt states (including Arizona, California and Texas) which have large
golfing populations and attractive climates.
The Company's business consists primarily of operating golf courses and
related facilities, with revenue generated from membership fees and dues at
private country clubs, greens fees, food and beverage services, golf cart
rentals, retail merchandise sales, driving range fees and lodging fees. The
Company owns 18 courses, leases four courses (subject to long-term leases in
excess of 20 years, including extension options), leases one driving range and
pro shop facility and manages one additional course. The Company's portfolio
includes ten private country clubs, nine public facilities and five semi-private
facilities.
Seasonal weather conditions as well as the timing of new course purchases or
leases may cause the Company's results of operations to vary from quarter to
quarter.
The Company has acquired certain golf facilities through its wholly-owned and
majority-owned subsidiaries. The consolidated financial statements include the
accounts of the Company and such subsidiaries. Intercompany balances and
transactions have been eliminated.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they 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
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three and nine month period ended June
30, 1997 are not necessarily indicative of the results that may be expected for
the year ended September 30, 1997. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended September 30, 1996.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
4
<PAGE>
COBBLESTONE HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(UNAUDITED)
3. NEW ACCOUNTING STANDARDS
Effective October 1, 1996, the Company adopted SFAS No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of
("SFAS 121"). SFAS 121 requires impairment losses to be recorded on long-lived
assets used in operations when indicators of impairment are present and the
undiscounted cash flows estimated to be generated by those assets are less than
the assets' carrying amount. SFAS 121 also addresses the accounting for long-
lived assets that are expected to be disposed of. The adoption had no impact on
the Company's financial position or results of operations.
Effective October 1, 1996, the Company adopted SFAS No. 123, Accounting for
Stock-Based Compensation ("SFAS 123"). SFAS 123 established the fair value-
based method of accounting for stock-based compensation arrangements under which
compensation cost is determined using the fair value of the stock option at the
grant date and the number of options vested, and is recognized over the periods
in which the related services are rendered. The Company has elected to continue
with the current intrinsic value-based method, as allowed by SFAS 123, and will
disclose the pro forma effect of adopting the fair value based method in future
fiscal years beginning with the fiscal year ending September 30, 1997.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1997 COMPARED TO THREE MONTHS ENDED JUNE 30, 1996
Operating Revenue. Operating revenue increased to $23.9 million for the three
months ended June 30, 1997 from $16.7 million for the comparable prior year
period, an increase of $7.2 million or 43.1%. Of this increase, $3.7 million is
attributable to operating revenue for the two courses acquired by the Company in
June and July of 1996 and $2.4 is attributable to the operating revenue for the
two courses acquired by the Company in February and April of 1997. The remaining
$1.1 million is attributable to increased revenue from the Company's other
facilities.
Course-level Operating Expenses. Course-level operating expenses, which
include costs of golf course operations (e.g., salaries, taxes and utilities),
costs of food and beverage sales and costs of pro shop sales increased to $16.5
million for the three months ended June 30, 1997 from $11.4 million for the
comparable prior year period, an increase of $5.1 million or 44.7%. Of this
increase, $2.7 million is attributable to course-level operating expenses for
the two courses acquired by the Company in June and July of 1996 and $1.6 is
attributable to course-level operating expenses for the two courses acquired by
the Company in February and April of 1997.
General and Administrative Expenses. General and administrative expenses
primarily consist of corporate salaries and related expenses and legal and
accounting fees. General and administrative expenses were $1.0 million for the
three months ended June 30, 1997 and $0.9 million for the three months ended
June 30, 1996. General and administrative expenses as a percentage of operating
revenue was 4.1% for the three months ended June 30, 1997, a decrease from 5.2%
for the comparable prior year period.
Depreciation and Amortization Expense. Depreciation and amortization expense
increased to $2.0 million for the three months ended June 30, 1997 from $1.8
million for the comparable prior year period, an increase of $0.2 million or
11.1%. Of this increase, approximately $0.1 million is attributable to the
inclusion of the two courses acquired in June and July of 1996, and $0.2 million
is attributable to the inclusion of the two courses acquired by the Company in
February and April of 1997.
Income from Operations. Income from operations increased to $4.4 million for
the three months ended June 30, 1997 from $2.6 million for the comparable prior
year period, primarily due to the factors described above. Income from
operations as a percentage of operating revenue was 18.3% for the three month
period ended June 30, 1997, an increase from 15.8% for the comparable prior year
period.
Interest Expense, Net. Interest expense, net, increased to $4.0 million for
the three months ended June 30, 1997 from $3.1 million for the comparable prior
period, an increase of $0.9 million or 29.0%. The increase primarily is a
result of a higher level of outstanding debt due to a unit offering by the
Company in June of 1996.
Provision for Income Taxes. The Company recorded a $0.2 million provision for
income taxes, which reflects the fact that certain subsidiaries generate taxable
income in individual states and localities notwithstanding the Company's
consolidated loss for financial reporting purposes for the nine months ended
June 30, 1997.
Net income. Net income was $0.2 million for the three months ended June 30,
1997 compared to a net loss of $4.1 million for the comparable prior year
period. In addition to the factors described above, a $3.5 million loss on early
extinguishment of debt was recorded during the three months ended June 30, 1996.
6
<PAGE>
NINE MONTHS ENDED JUNE 30, 1997 COMPARED TO NINE MONTHS ENDED JUNE 30, 1996
Operating Revenue. Operating revenue increased to $59.6 million for the nine
months ended June 30, 1997 from $43.7 million for the comparable prior year
period, an increase of $15.9 million or 36.4%. Of this increase, $9.8 million is
attributable to operating revenue for the two courses acquired by the Company in
June and July of 1996 and $3.1 is attributable to the operating revenue for the
two courses acquired by the Company in February and April of 1997. The remaining
$3.0 million is attributable to increased revenue from the Company's other
facilities.
Course-level Operating Expenses. Course-level operating expenses, which
include costs of golf course operations (e.g., salaries, taxes and utilities),
costs of food and beverage sales and costs of pro shop sales increased to $42.5
million for the nine months ended June 30, 1997 from $30.5 million for the
comparable prior year period, an increase of $12.0 million or 39.3%. Of this
increase, $7.5 million is attributable to course-level operating expenses for
the two courses acquired by the Company in June and July of 1996 and $2.0 is
attributable to course-level operating expenses for the two courses acquired by
the Company in February and April of 1997. The remaining $2.5 million is
attributable to increased course-level operating expenses from the Company's
other facilities.
General and Administrative Expenses. General and administrative expenses
primarily consist of corporate salaries and related expenses and legal and
accounting fees. General and administrative expenses increased to $2.9 million
for the nine months ended June 30, 1997 from $2.6 million for the comparable
prior year period, an increase of $0.3 million or 11.5%. The increase in
expense was related to additional overhead to support the Company's expanded
operations during the first quarter of fiscal 1997. General and administrative
expenses were relatively constant for the second and third quarters of fiscal
1997. General and administrative expenses as a percentage of operating revenue
was 4.9% for the nine months ended June 30, 1997, a decrease from 5.9% for the
comparable prior year period.
Depreciation and Amortization Expense. Depreciation and amortization expense
increased to $6.5 million for the nine months ended June 30, 1997 from $5.4
million for the comparable prior year period, an increase of $1.1 million or
20.4%. Of this increase, approximately $0.4 million is attributable to the
inclusion of the two courses acquired in June and July of 1996 and $0.2 million
is attributable to the inclusion of the two courses acquired by the Company in
February and April of 1997. The remainder is due to depreciation and
amortization expense on various capital projects completed since March 1996.
Income from Operations. Income from operations increased to $7.7 million for
the nine months ended June 30, 1997 from $5.3 million for the comparable prior
year period, primarily due to the factors described above. Income from
operations as a percentage of operating revenue was 12.9% for the nine month
period ended June 30, 1997, an increase from 12.2% for the comparable prior year
period.
Interest Expense, Net. Interest expense, net, increased to $11.4 million for
the nine months ended June 30, 1997 from $8.2 million for the comparable prior
period, an increase of $3.2 million or 39.0%. The increase primarily is a result
of a higher level of outstanding debt due to a unit offering by the Company in
June of 1996.
Provision for Income Taxes. The Company recorded an $0.3 million provision for
income taxes, which reflects the fact that certain subsidiaries generate taxable
income in individual states and localities notwithstanding the Company's
consolidated loss for financial reporting purposes.
Net loss. Net loss decreased to $4.0 million for the nine months ended June
30, 1997 from $6.5 million for the comparable prior year period. In addition to
the factors described above, a $3.5 million loss on early extinguishment of debt
was recorded during the nine months ended June 30, 1996.
7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary uses of cash are to fund debt service and maintenance
capital expenditures at its existing facilities (such as landscaping and
purchasing golf cart fleets). The Company also implements one-time upgrade and
renovation capital expenditures at its existing facilities in order to enhance
their appeal to customers and members and to generate additional revenues and
cash flow. Examples of these expenditures are the addition of courses (including
nine hole additions) to existing facilities to increase capacity and clubhouse
renovations to support increased dues and fees. These expenditures are generally
of a non-recurring nature. In addition, the Company implements strategic capital
expenditure programs which enable it to reduce course level operating costs and
improve the efficiency of operations, such as improving the irrigation system,
acquiring more efficient maintenance equipment and other programs which enhance
the marketability and/or reduce the operating expenses of existing facilities.
As part of its business strategy, the Company will require cash to continue to
acquire, lease or manage additional golf courses and the related facilities and
to complete any targeted renovations. The Company expended $15.1 million on
acquisition-related costs and $5.5 million on capital improvements during the
nine months ended June 30, 1997. As of June 30, 1997, the Company had
approximately $3.6 million of long-term commitments for one-time capital
expenditures with respect to a golf facility.
Based upon the current level of operations and anticipated growth, the Company
believes that cash flow from operations, together with available borrowings
under the Company's credit facility and other sources of liquidity, will be
adequate to meet the Company's anticipated future requirements for working
capital, capital expenditures and scheduled payments of principal and interest
on its indebtedness. There can be no assurance, however, that the Company's
business will generate sufficient cash flow from operations or that future
working capital borrowings will be available in an amount sufficient to enable
the Company to service its indebtedness or make necessary capital expenditures.
The Company intends to fund these expenditures primarily with operating cash
flow and borrowings under its credit facility. The credit facility provides for
borrowings of up to $50.0 million, of which $45.0 million is available to fund
future acquisitions of golf courses and capital expenditures at such courses and
certain capital improvements at existing courses, and $5.0 million of which is
available for general working capital purposes. The total borrowing availability
under the $45.0 million portion of the credit facility will decrease over the
term of the facility beginning September 30, 1998. The credit facility provides
that the Company may not make any acquisitions or upgrade capital expenditures
when Funded Debt plus certain projected upgrade capital expenditures is greater
than 6.5x of Adjusted EBITDA (each as defined in the credit facility), with
certain adjustments for notes receivable, reducing over time. This 6.5x Funded
Debt to Adjusted EBITDA test is reduced in subsequent years. The credit facility
also imposes other limitations on the ability of the Company with respect to
borrowings. In addition, as of June 30, 1997, the Company had $0.9 million of
cash on hand to meet its working capital and other needs and $3.5 million
available on its working capital revolver.
Historically, the Company has financed its operations through borrowings under
bank credit facilities and equity contributions by its stockholders. As of June
30, 1997, the Company's stockholders have invested a total of $47.6 million of
equity to fund the expansion of the Company and its golf course portfolio.
For the nine month period ended June 30, 1997, net cash used in operating
activities was $0.3 million versus $0.2 million in the comparable prior year
period. The largest components of the cash used in operating activities is the
payment of $5.4 million of accounts payable, accrued liabilities offset by $6.9
million of depreciation and amortization.
8
<PAGE>
During the nine month period ended June 30, 1997, net cash used in investing
activities was $20.6 million versus $12.9 million in the prior comparable
period. Expenditures for the nine months ended June 30, 1997 consisted of $15.1
million in acquisition-related costs and $5.5 million in capital expenditures.
During the nine month period ended June 30, 1997, net cash provided by
financing activities was $15.2 million versus $14.1 million in the prior
comparable period. During the nine months ended June 30, 1997, the Company
borrowed $14.7 million under its acquisition facility and $6.0 under its working
capital revolver. During that same period, the Company repaid $4.5 million
under its working capital revolver and paid $1.0 million in principal of its
other existing obligations. At June 30, 1997 borrowings under the $50 million
credit facility totaled $16.2 million.
RECENT DEVELOPMENTS
In February of 1997, the Company purchased a 36-hole private country club
located near Tampa, Florida. Additionally, the Company purchased an 18-hole
public golf course located near Atlanta, Georgia in April of 1997 bringing the
total number of golf properties in the Company's portfolio to 24.
9
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the nine month
period ended June 30, 1997.
10
<PAGE>
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.
COBBLESTONE HOLDINGS, INC.
Date: August 14, 1997 By: /s/ Stefan C. Karnavas
------------------------
Stefan C. Karnavas
Chief Financial Officer
(Duly Authorized
Officer and Principal Financial and
Accounting Officer)
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> JUN-30-1997
<CASH> 902,645
<SECURITIES> 0
<RECEIVABLES> 10,814,547
<ALLOWANCES> 1,230,405
<INVENTORY> 2,606,280
<CURRENT-ASSETS> 10,097,212
<PP&E> 177,670,629
<DEPRECIATION> 21,429,794
<TOTAL-ASSETS> 180,134,106
<CURRENT-LIABILITIES> 9,064,601
<BONDS> 0
42,241,169
0
<COMMON> 17,224
<OTHER-SE> (8,498,605)
<TOTAL-LIABILITY-AND-EQUITY> 180,134,106
<SALES> 14,414,750
<TOTAL-REVENUES> 59,577,245
<CGS> 6,482,954
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</TABLE>
