U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(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, 1999
or
[_] TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the transition period from _________ to _________
Commission File Number: 0-22745
Janus Hotels and Resorts, Inc.
(Name of Small Business Issuer in its Charter)
DELAWARE 13-2572712
(State or Other Jurisdiction of (IRS Employer
Incorporation or organization) Identification No.)
2300 Corporate Blvd., N.W.,
Suite 232
Boca Raton, Florida 33431-8596
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (561) 997-4800
Janus American Group, Inc.
(Former name)
Check whether issues (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 | |
Number of shares of common stock outstanding as of June 30, 1999: 8,671,092
Transitional Small Business Disclosure Format: Yes | | No |X|
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<PAGE>
JANUS HOTELS AND RESORTS, INC.
FORM 10-QSB
FOR QUARTERLY PERIOD ENDED JUNE 30, 1999
Part I. Financial Information Page No.
Item 1. Financial Statements
Unaudited Consolidated Balance Sheets June 30, 1999
and December 31, 1998 3
Unaudited Consolidated Statements Of Operations For The Three
Months Ended June 30, 1999 and June 30, 1998 4
Unaudited Consolidated Statements Of Operations Six Months
Ended June 30,1999 and June 30, 1998 5
Unaudited Consolidated Statements Of Cash Flows Six Months
Ended June 30, 1999 and June 30, 1998 6
Notes To Unaudited Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis Of Financial
Condition and Results of Operations 8
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 6. Exhibits and Reports on Form 8-K 11
Signature Page 11
2 of 11
<PAGE>
<TABLE>
JANUS HOTELS AND RESORTS, INC.
<CAPTION>
UNAUDITED CONSOLIDATED BALANCE SHEETS
AS AT JUNE 30, 1999 AND DECEMBER 31, 1998
June 30, December 31,
ASSETS 1999 1998
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 9,652,014 $ 12,383,741
Restricted cash 1,289,989 802,746
Accounts receivable 1,789,726 1,422,327
Current portion of notes receivable 217,894 322,043
Other current assets 214,943 239,206
----------- -----------
Total current assets 13,164,566 15,170,063
----------- -----------
Property and equipment, net 99,947,269 74,550,300
Notes receivable 453,194 453,194
Mortgage notes receivable 3,223,977 5,425,046
Goodwill, net 6,451,741 6,536,996
Deferred tax asset 800,126 680,126
Other assets 6,741,619 5,868,067
----------- -----------
$130,782,492 $108,683,792
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Payable for redemption of preferred stock $ 36,071 $ 41,370
Current portion of long-term debt 4,130,058 2,683,504
Accounts payable 2,691,717 1,495,253
Accrued expenses 2,672,966 1,910,248
----------- -----------
Total current liabilities 9,530,812 6,130,375
----------- -----------
Long-term debt, net of current portion 72,522,169 60,582,883
Minority interest 2,465,471 1,773,960
Stockholders' equity:
Preferred stock, series B; par value $0.01 per share; 20,000 shares authorized;
16,788.08 and 10,451.88 shares issued and outstanding 168 105
Common stock, par value $0.01 per share; 15,000,000 shares authorized;
11,883,220 shares issued 118,833 118,833
Additional paid-in capital 52,074,258 45,738,120
Accumulated deficit (4,512,920) (4,244,185)
Treasury stock, 3,212,128 and 3,192,128 common shares, at cost (1,416,299) (1,416,299)
----------- -----------
Total stockholders' equity 46,264,040 40,196,574
----------- -----------
$130,782,492 $108,683,792
=========== ===========
</TABLE>
See notes to unaudited consolidated financial statements.
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<PAGE>
<TABLE>
JANUS HOTELS AND RESORTS, INC.
<CAPTION>
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
1999 1998
<S> <C> <C>
Revenues:
Room and related services $10,297,407 $3,127,780
Food and beverage 2,702,697 499,807
Management fees 460,965 440,902
Other 199,611 104,296
---------- ---------
Total revenues 13,660,680 4,172,785
---------- ---------
Operating expenses:
Direct:
Room and related services 2,436,021 712,996
Food and beverage 2,097,301 414,022
Selling and general 549,002 168,327
---------- ---------
Total direct expenses 5,082,324 1,295,345
---------- ---------
Occupancy expenses 1,725,823 461,637
Selling, general and administrative expenses 2,990,647 1,174,672
Depreciation 1,324,775 356,747
Amortization 79,081 45,364
---------- ---------
Total operating expenses 11,202,650 3,333,765
---------- ---------
Operating income 2,458,030 839,020
Other income (expense):
Interest expense (1,676,134) (466,565)
Interest income 167,120 391,594
Other (15,221) -
---------- ---------
Income before income taxes and minority interest 933,795 764,049
Provision (credit) for income taxes - (261,215)
---------- ---------
Income before minority interest 933,795 1,025,264
Minority interest 24,259 40,846
---------- ---------
Net income 909,536 984,418
Less preferred dividend requirement 313,914 195,975
---------- ---------
Net income applicable to common stock $ 595,622 $ 788,443
========== =========
Net income per common share:
Basic $0.07 $0.09
==== ====
Diluted $0.07 $0.09
==== ====
Weighted average common share:
Basic 8,671,092 8,691,735
========= =========
Diluted 8,671,092 8,691,735
========= =========
</TABLE>
See notes to unaudited consolidated financial statements.
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<PAGE>
<TABLE>
JANUS HOTELS AND RESORTS, INC.
<CAPTION>
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
1999 1998
<S> <C> <C>
Revenues:
Room and related services $17,733,915 $4,964,447
Food and beverage 5,084,482 792,853
Management fees 1,022,958 816,033
Other 417,143 134,824
---------- ---------
Total revenues 24,258,498 6,708,157
---------- ---------
Operating expenses:
Direct:
Room and related services 4,357,099 1,236,178
Food and beverage 3,960,506 666,202
Selling and general 1,004,958 295,477
---------- ---------
Total direct expenses 9,322,563 2,197,857
---------- ---------
Occupancy expenses 3,343,550 882,985
Selling, general and administrative expenses 5,508,737 2,094,008
Depreciation 2,599,821 698,471
Amortization 157,507 96,346
---------- ---------
Total operating expenses 20,932,178 5,969,667
---------- ---------
Operating income 3,326,320 738,490
Other income (expense):
Interest expense (3,347,204) (924,987)
Interest income 364,168 638,043
Other 4,779 -
---------- ---------
Income before income taxes and minority interest 348,063 451,546
Provision (credit) for income taxes - (261,215)
---------- ---------
Income before minority interest 348,063 712,761
Minority interest 34,082 1,095
---------- ---------
Net income 313,981 711,666
Less preferred dividend requirement 582,716 393,558
---------- ---------
Net income (loss) applicable to common stock $ (268,735) $ 318,108
========== =========
Net income (loss) per common share:
Basic $(0.03) $0.04
===== ====
Diluted $(0.03) $0.04
===== ====
Weighted average common share:
Basic 8,676,948 8,691,735
========= =========
Diluted 8,676,948 8,691,735
========= =========
</TABLE>
See notes to unaudited consolidated financial statements.
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<PAGE>
<TABLE>
JANUS HOTELS AND RESORTS, INC.
<CAPTION>
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
1999 1998
<S> <C> <C>
Operating activities:
Net income $ 313,981 $ 711,665
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization 2,599,821 698,471
Amortization of intangible assets 157,507 96,346
Minority interest 34,082 1,095
Discontinued operations - (73,948)
Changes in operating assets and liabilities:
Accounts receivable (367,399) (23,884)
Other current assets 24,263 266,414
Other assets (568,555) (575,150)
Accounts payable and accrued expenses 562,088 (134,502)
---------- ----------
Net cash provided by operating activities 2,755,788 966,507
---------- ----------
Investing activities:
Acquisition of hospitality business, net of noncash consideration and cash acquired 462,008 -
Increase in notes receivable - (4,276)
Purchases of property and equipment (2,888,930) (645,034)
Gain on sale of subsidiary's net assets - 14,161
Collections of notes receivable 163,470 84,536
---------- ----------
Net cash used in investing activities (2,263,452) (550,613)
---------- ----------
Financing activities:
Dividends paid (582,716) (393,558)
Decrease (increase) in restricted cash (487,243) -
Conversion of warrants to common stock - 8,823
Proceeds from long-term borrowings - -
Repayments of long-term borrowings (2,154,104) (291,425)
---------- ----------
Net cash used in financing activities (3,224,063) (676,160)
---------- ----------
Increase (decrease) in cash and cash equivalents (2,731,727) (260,266)
Cash and cash equivalents, beginning of period 12,383,741 11,523,848
---------- ----------
Cash and cash equivalents, end of period $ 9,652,014 $11,263,582
========== ==========
Supplemental disclosure of cash flow data:
Interest paid $ 3,347,204 $ 924,987
========== ==========
Noncash transactions:
Acquisition of hospitality business $ 6,336,200
==========
</TABLE>
See notes to unaudited consolidated financial statements.
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<PAGE>
JANUS HOTELS AND RESORTS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1--Unaudited interim financial statements:
In the opinion of management, the accompanying unaudited consolidated
financial statements reflect all adjustments, consisting of normal
recurring accruals, necessary to present fairly the financial position
of Janus Hotels and Resorts, Inc. (formerly Janus American Group, Inc.)
and subsidiaries (the "Company" or "Janus") as of June 30, 1999, its
results of operations for the three months and six months ended June
30, 1999 and 1998 and its cash flows for the six months ended June 30,
1999. Certain terms used herein are defined in the audited consolidated
financial statements of the Company as of December 31, 1998 and for the
years then ended (the "Audited Janus Financial Statements") included in
the Company's form 10-KSB previously filed with the Securities and
Exchange Commission. Accordingly, these unaudited consolidated
financial statements should be read in conjunction with the Audited
Janus Financial Statements and the other financial statements included
in the Form 10-KSB.
The results of operations for the six months ended June 30, 1999 are
not necessarily indicative of the results of operations for the full
year ending December 31, 1999.
Note 2--Organization:
As of June 30, 1999, the Company owned and operated eighteen hotels (of
which sixteen are wholly-owned, one 85% owned and one 75% owned) and a
hotel management company which manages hotels for unrelated parties.
Note 3--Acquisition:
Effective January 1, 1999 the Company acquired all of the outstanding
shares of Beck Hospitality, Inc. II ("Beck II"), which owned seven
hotels and two hotel management contracts with respect to the hotels
known as Knights Inn West Palm Beach in West Palm Beach, Florida and
Days Inn Inner Harbor in Baltimore, Maryland. The purchase price of
$6,336,200 approximated the fair value of the net assets acquired. The
acquisition was accounted for under the purchase method. The results of
operations of the acquired business are included in the consolidated
financial statements from the effective date of acquisition. The
consideration exchanged by the Company pursuant to the merger agreement
with Beck II was the issuance of 6,336.20 shares of Series B preferred
stock with a liquidation preference of $1,000 per share for a total
value of $6,336,200.
The following unaudited pro forma information presents the results of
operations of the Company for the three months and six months ended
June 30, 1998 as if the acquisition had taken place on January 1, 1998:
<TABLE>
<CAPTION>
(in thousands, except per Three Months Ended Six Months Ended
share amounts) June 30, 1998 June 30, 1998
------------------------------- ---------------------- ------------------
<S> <C> <C>
Revenues $6,728,433 $11,385,779
Net income 1,248,072 886,164
Earnings per share:
Basic $0.11 $0.03
Diluted $0.11 $0.03
</TABLE>
Note 4--Litigation:
The Company is a party to various legal proceedings. In the opinion of
management, these actions are routine in nature and will not have a
material adverse effect on the Company's consolidated financial
statements in subsequent years.
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ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Overview
The operations of the Company are comprised primarily of the operations of owned
hotels and the Company's management of hotels owned by third parties.
The Company had net income of $909,536 for the three months ended June 30, 1999
compared to $984,418 for the three months ended June 30, 1998. The Company had
net income of $313,981 for the six months ended June 30, 1999 compared to net
income of $711,665 for the six months ended June 30, 1998. These decreases were
primarily the result of lower occupancy rates, higher selling, general and
administrative expenses and increased depreciation associated with the
acquisitions.
Three Months Ended June 30, 1999 Compared to the Three Months Ended June 30,
1998
Room and related services revenue increased 229.2% to $10,297,407 in 1999 from
$3,127,780 in 1998. The increase was attributable primarily to acquisitions. The
average room rate increased to $59.13 for 1999 from $49.89 in 1998. Occupancy
decreased in 1999 to 68.3% from 71.1% in 1998 partly due to management's
decision to increase room rates in segments of various markets. Excluding the
acquisitions made in 1998 and 1999, room and related services revenue decreased
0.5%.
Food and beverage revenues are principally a function of the number of guests
who stay at each owned hotel, local walk-in business and catering sales. These
revenues increased 440.8% to $2,702,697 in 1999 from $499,807 in 1998. This
increase is related primarily to acquisitions. Excluding the acquisitions made
in 1998 and 1999, food and beverage revenues decreased 6.1%.
Management fee income increased 4.6% to $460,965 in 1999 from $440,902 in 1998.
This increase is due to the addition of new third party management contracts.
Total direct operating expenses increased 292.4% to $5,082,324 in 1999 from
$1,295,345 in 1998 and increased as a percentage of room and related services
and food and beverage revenues to 39.1% from 35.7%. Excluding the acquisitions
made in 1998 and 1999, total direct operating expenses increased 1.1%.
Occupancy expenses increased 273.9% to $1,725,823 from $461,637 in 1998.
Excluding the acquisitions made in 1998 and 1999, occupancy expenses increased
4.5%.
Selling, general and administrative expenses increased 154.6% to $2,900,647 in
1999 from $1,174,672 in 1998 but decreased as a percentage of total revenues to
21.9% from 28.2%. Excluding the acquisitions made in 1998 and 1999, selling,
general and administrative expenses increased 33.2%. This increase is
attributable to additional regional management salaries, commissions on
management contracts and increased legal expenses.
Depreciation increased by $968,028 in 1999 from $356,747 in 1998. The increase
was primarily attributable to depreciation for the acquisitions made in 1998 and
1999.
Interest income decreased to $167,120 in 1999 from $391,594 in 1998. In 1998
interest income included interest related to a federal income tax refund and a
note receivable from a property acquired at the beginning of 1999.
Interest expense increased to $1,676,134 in 1999 from $466,565 in 1998. The
increase was attributable to the debt incurred or assumed for the acquisitions.
Minority interest decreased to $24,259 in 1999 from $40,846 in 1998 as net
income from the Kings Dominion partnership decreased in 1999 and the Days Inn
Pompano hotel incurred a loss in 1999.
Six Months Ended June 30, 1999 Compared to the Six Months Ended June 30, 1998
Room and related services revenue increased 257.2% to $17,733,915 in 1999 from
$4,964,447 in 1998. The increase was attributable primarily to acquisitions. The
average room rate increased to $58.35 for 1999 from $46.96 in 1998. Occupancy
decreased in 1999 to 59.8% from 60.2% in 1998 partly due to management's
decision to increase room rates in segments of various markets. Excluding the
acquisitions made in 1998 and 1999, room and related services revenue remained
even.
Food and beverage revenues increased 541.3% to $5,084,482 in 1999 from $792,853
in 1998. This increase is related to acquisitions. Excluding the acquisitions
made in 1998 and 1999, food and beverage revenues decreased 6.3%.
Management fee income increased 25.4% to $1,022,958 in 1999 from $816,033 in
1998. This increase is due to the addition of new third party management
contracts.
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<PAGE>
Total direct operating expenses increased 324.2% to $9,322,563 in 1999 from
$2,197,857 in 1998 and increased as a percentage of room and related services
and food and beverage revenues to 40.9% from 38.2%. Excluding the acquisitions
made in 1998 and 1999, total direct operating expenses increased 1.1%.
Occupancy expenses increased 278.7% to $3,343,550 in 1999 from $882,985.
Excluding the acquisitions made in 1998 and 1999, occupancy expenses increased
1.3%.
Selling, general and administrative expenses increased 163.1% to $5,508,737 in
1999 from $2,094,008 in 1998 but decreased as a percentage of total revenues to
22.7% from 31.2%. Excluding the acquisitions made in 1998 and 1998, selling,
general and administrative expenses increased 28.1%. This increase is
attributable to additional regional management salaries, commissions on
management contracts and increased legal expenses.
Depreciation increased by $1,901,350 in 1999 from $698,471 in 1998. The increase
was primarily attributable to depreciation for the acquisitions made in 1998 and
1999.
Interest income decreased to $364,168 in 1999 from $638,043 in 1998. In 1998
interest income included interest related to a federal income tax refund and a
note receivable from a property acquired at the beginning of 1999.
Interest expense increased to $3,347,204 in 1999 from $924,987 in 1998. The
increase was attributable to the debt incurred or assumed for the acquisitions.
Minority interest increased to $34,082 in 1999 from $1,095 in 1998 reflecting
the results of operations from the Days Inn Pompano hotel and the Kings Dominion
partnership in 1999.
Liquidity and Capital Resources
Total assets increased to $130,782,492 at June 30, 1999 from $108,683,792 at
December 31, 1998. The increase in total assets was the result of the
acquisition of Beck II described in Note 3 of the Unaudited Consolidated
Financial Statements.
Net cash provided by operating activities increased to $2,755,788 in the six
months ended June 30, 1999 from $968,115 in the six months ended June 30, 1998,
an increase of $1,787,673. The increase is primarily the result of the
acquisitions made in 1998 and 1999.
Net cash used in investing activities increased to $2,263,452 in the six months
ended June 30, 1999 from $550,613 in the six months ended June 30, 1998. The
increase is primarily the result of an increase in capital expenditures of
$2,243,896. The Company plans to spend an additional $2,132,000 on capital
improvements during the remainder of 1999.
Net cash used in financing activities increased to $3,224,063 in the six months
ended June 30, 1999 from $677,768 in the six months ended June 30, 1998. The
increase is primarily the result of an increase in the repayments of long-term
borrowings of $1,862,679.
Earnings before interest, taxes, depreciation and amortization ("EBITDA")
increased to $6,083,648 during the six months ended June 30, 1999. EBITDA is
defined as operating income plus depreciation and amortization. The Company
considers this definition of EBITDA to be an indicative measure of the Company's
operating performance because it can be used to measure the Company's abilities
to service debt, fund capital expenditures and expand its business; such
information should not be considered as an alternative to net income, operating
profit, cash flows from operations or any other operating or liquidity measure
prescribed by generally accepted accounting principles.
The Company maintains a number of commercial banking relationships and maintains
a line of credit totaling $2,200,000, which had an outstanding balance of
$1,500,000 at June 30, 1999.
The Company's principal sources of liquidity are cash on hand (including escrow
deposits and replacement reserves), cash from operations, earnings on invested
cash and, when required, principally in connection with acquisitions, borrowings
(consisting primarily of loans secured by mortgages on real property owned or to
be acquired by the Company). The Company's continuing operations are funded
through cash generated from its hotel operations. Acquisitions of hotels are
expected to be financed through a combination of cash on hand, internally
generated cash, issuance of equity securities and borrowings, some of which is
likely to be secured by assets of the Company.
Seasonality
Demand at many of the Company's hotels is affected by seasonal patterns. Demand
for hotel rooms in the industry generally tends to be lower during the first and
fourth quarters and higher in the second and third quarters. Accordingly, the
Company's revenues reflect similar seasonality.
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<PAGE>
Year 2000 Issues
The Company has conducted a review of its computer systems to identify the
systems that could be affected by the "Year 2000" issue and has initiated a plan
to resolve the issue. The Year 2000 problem is the result of computer programs
being written using the two digits rather than four to define the applicable
year. Any of the Company's programs that have time-sensitive software may
recognize a date using "00" as the year 1900 rather than the year 2000. This
could result in a major system failure or miscalculations. The Company presently
believes that, with modifications to existing software and converting to new
software, the Year 2000 problem will not pose significant operational problems
for the Company's computer systems as so modified and converted. The Company
anticipates completing this work by September 30, 1999. The Company is also in
the process of working with each of its property general managers to complete a
plan in order to ensure that all of the computerized operations of the hotels
for the year 2000 run properly. All hotels will have a Year 2000 test prior to
September 30, 1999 to ensure that the Year 2000 does not cause any significant
problems with the hotels' ability to rent rooms.
Forward Looking Statements
When used in this and in future filings by the Company with the Securities and
Exchange Commission, in the Company's press releases and in oral statements made
with the approval of an authorized executive officer of the Company, the words
or phrases "will likely result," "expects," "plans," "will continue," "is
anticipated," "estimated," "project" or "outlook" or similar expressions
(including confirmations by an authorized executive officer of the Company of
any such expressions made by a third party with respect to the Company) are
intended to identify forward-looking statements. The Company wishes to caution
readers not to place undue reliance on any such forward-looking statements, each
of which speak only as of the date made. Such statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from historical earnings and those presently anticipated or projected. Such
risks and other aspects of the Company's business and operations are described
in "Management's Discussion and Analysis of Financial Condition and Results of
Operations." The Company has no obligation to publicly release the result of any
revisions that may be made to any forward-looking statements to reflect
anticipated or unanticipated events or circumstances occurring after the date of
such statements.
PART II--OTHER INFORMATION
Items 1 to 3
None
Item 4 - Submission of Matters to a Vote of Security Holders
The Company held its annual meeting of stockholders on May 21, 1999.
The following are the results of matters submitted to stockholders for
a vote:
Matter For Withheld
------ --- --------
Election of Directors:
Class C Directors
-----------------
Harry G. Yeaggy 6,102,951 28,370
James E. Bishop 6,102,557 28,763
Michael M. Nanosky 6,102,951 28,370
Class B Director
Vincent W. Hatala, Jr. 6,103,314 28,006
For Against Withheld
Ratification of the appointment of
Grant Thornton LLP as independent
auditors for the year ending
December 31, 1999 6,124,559 3,299 3,468
Approval of an amendment to the
Company's Restated Certificate of
Incorporation to change the
Company's name to Janus Hotels and
Resorts, Inc. 6,128,832 1,014 1,475
Item 5 - Other Information
None
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<PAGE>
Item 6 - Exhibits and Reports on Form 8-K.
A. Exhibits
Exhibit 27: Financial Data Schedule
B. Reports on Form 8-K
None
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, as amended, the registrant has caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
JANUS HOTELS AND RESORTS, INC.
Dated: August 16, 1999 /s/James E. Bishop
James E. Bishop
President
Dated: August 16, 1999 /s/ Richard A. Tonges
Richard A. Tonges
Treasurer and Vice President of Finance
(Principal Financial and Accounting
Officer)
11 of 11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 9,652,014
<SECURITIES> 0
<RECEIVABLES> 1,789,726
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 13,164,566
<PP&E> 105,813,704
<DEPRECIATION> 5,866,435
<TOTAL-ASSETS> 130,782,492
<CURRENT-LIABILITIES> 9,530,812
<BONDS> 0
0
168
<COMMON> 118,833
<OTHER-SE> 46,145,039
<TOTAL-LIABILITY-AND-EQUITY> 130,782,492
<SALES> 0
<TOTAL-REVENUES> 24,258,498
<CGS> 0
<TOTAL-COSTS> 9,322,563
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,347,204
<INCOME-PRETAX> 348,063
<INCOME-TAX> 0
<INCOME-CONTINUING> 313,981
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 313,981
<EPS-BASIC> (.03)
<EPS-DILUTED> (.03)
</TABLE>
