Form 10-Q Quarterly Report
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES ACT OF 1934
For the quarterly period ended March 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES ACT OF 1934
Commission File Number: 1-7614
-----------------------------
PMCC FINANCIAL CORP.
(Exact Name of Registrant as Specified in its Charter)
Delaware 11-3404072
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
3 Expressway Plaza
Roslyn Heights, N.Y. 11577
(Address of Principal Executive Offices and Zip Code)
(516) 625-3000
(Registrant's telephone number, including area code)
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 ________
Number of shares outstanding of the issuer's Common Stock, par value $.01
per share, as of May 7, 1999: 3,724,800 shares.
<PAGE>
PMCC FINANCIAL CORP.
FORM 10-Q
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Page No
Part I - Financial Information
Item 1. Financial Statements:
Condensed Consolidated Statements of Operations (Unaudited) 3
Three Months Ended March 31, 1999 and 1998
Condensed Consolidated Statements of Financial Condition (Unaudited) 4
March 31, 1999 and December 31, 1998
Condensed Consolidated Statements of Cash Flows (Unaudited) 5
Three Months Ended March 31, 1999 and 1998
Notes to Condensed Consolidated Financial Statements (Unaudited) 6
Item 2. Management's Discussion and Analysis of Financial Condition 9
and Results of Operations
Part II - Other Information 13
Signatures 14
</TABLE>
<PAGE>
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
PMCC FINANCIAL CORP. and SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1999 1998
<S> <C> <C>
Revenues:
Sales of residential rehabilitation properties $8,544,978 $8,212,677
Gains on sale of mortgage loans, net 3,807,903 3,085,390
Interest earned 1,319,435 859,824
---------- ----------
13,672,316 12,157,891
Expenses:
Costs of sales, residential rehabilitation properties 7,804,194 7,589,176
Compensation and benefits 2,730,631 2,189,078
Interest expense 1,179,956 900,525
Other general and administrative 1,155,644 720,313
---------- ----------
12,870,425 11,399,092
Income before income tax expense 801,891 758,799
Income tax expense (1) 329,000 1,128,000
------- ---------
Net income (loss) $472,891 $(369,201)
======== ==========
Pro forma information:
Historical income before income tax $758,799
Provision for pro forma income taxes (311,000)
---------
Pro forma net income $447,799
========
Net income/pro forma net income per share of common stock-basic $0.13 $0.15
===== =====
Net income/pro forma net income per share of common stock-diluted $0.13 $0.14
===== =====
Weighted average number of shares and
share equivalents outstanding-basic 3,724,800 3,083,333
========= =========
Weighted average number of shares and
share equivalents outstanding-diluted 3,756,571 3,176,668
========= =========
</TABLE>
See accompanying notes to unaudited condensed consolidated financial
statements.
(1) Income tax expense for the three months ended March 31, 1998 includes a
provision for deferred income tax expense of $1,081,000 related to the change in
tax status of the Company's subsidiaries from S corporation's to C
corporation's.
<PAGE>
PMCC FINANCIAL CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
<S> <C> <C>
Assets
Cash and cash equivalents $1,585,491 $3,596,002
Receivable from sales of loans 4,531,981 20,789,470
Mortgage loans held for sale, net 53,066,212 67,676,679
Mortgage loans held for investment 1,746,877 1,717,228
Interest and other receivables, net 1,126,977 1,208,454
Residential rehabilitation properties 17,965,858 16,491,514
Furniture & equipment, net 817,982 828,226
Prepaid expenses and other assets 574,471 501,587
---------- ----------
Total assets $81,415,849 $112,809,160
=========== ============
Liabilities and shareholders' equity Liabilities:
Notes payable-principally warehouse lines of credit $64,324,891 $94,673,739
Due to affiliates -- 1,187,998
Distribution payable -- 277,700
Accrued expenses and other liabilities 3,567,493 3,637,149
--------- ---------
Total liabilities 67,892,384 99,776,586
---------- ----------
Shareholders' equity
Common stock 37,500 37,500
Additional paid-in capital 10,864,033 10,846,033
Retained earnings 2,783,578 2,310,687
Treasury stock (161,646) (161,646)
--------- ---------
Total shareholders' equity 13,523,465 13,032,574
---------- ----------
Total liabilities and shareholders' equity $81,415,849 $112,809,160
=========== ============
</TABLE>
See accompanying notes to unaudited condensed consolidated financial
statements
<PAGE>
PMCC FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $472,891 $(369,201)
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
Residential rehabilitation properties (exclusive of cash paid directly
to/by independent contractors):
Contractual fees received (740,784) (623,501)
Proceeds from sales of properties 8,544,978 8,212,677
Costs of properties acquired (9,278,538) (8,964,016)
Depreciation and amortization 61,032 15,500
Decrease (increase) in interest and other receivables 81,477 (230,203)
Decrease (increase) in mortgage loans held for sale 14,580,818 (20,666,495)
Decrease in receivable from sales of loans 16,257,489 10,344,538
(Increase) decrease in prepaid expenses and other assets (72,884) (113,908)
(Decrease) increase in accrued expenses and other liabilities (69,656) 1,539,152
---------- -----------
Net cash provided by (used in) operating activities 29,836,823 (10,855,457)
---------- ------------
Cash flows from investing activities:
Purchase of furniture and equipment (32,788) (46,902)
-------- --------
Net cash used in investing activities (32,788) (46,902)
-------- --------
Cash flows from financing activities:
Distributions to S corporation shareholders (277,700) (1,919,991)
Net proceeds from sale of common stock -- 9,183,325
Net (decrease) increase in due to affiliates (1,187,998) 219,347
Net decrease in notes payable-shareholder -- (293,163)
Net (decrease) increase in notes payable-warehouse lines of credit (30,348,848) 3,654,929
------------ -----------
Net cash (used in) provided by financing activities (31,814,546) 10,844,447
------------ ----------
Net decrease in cash and cash equivalents (2,010,511) (57,912)
Cash and cash equivalents at beginning of period 3,596,002 1,713,405
----------- ---------
Cash and cash equivalents at end of period $1,585,491 $1,655,493
========== ==========
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $1,297,371 $483,248
========== ========
Income taxes $55,000 $13,651
======= =======
Loans transferred from mortgage loans held for sale to held for
investment, net $29,649 -
======= =======
</TABLE>
See accompanying notes to unaudited condensed consolidated financial
statements
<PAGE>
PMCC FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999
(Unaudited)
1. Basis of Presentation
The unaudited condensed consolidated financial statements included herein
reflect all adjustments, which are, in the opinion of management, necessary for
a fair presentation of the Company's financial condition as of the dates
indicated and the results of operations for the periods shown. In preparing the
accompanying condensed consolidated financial statements, management is required
to make estimates and assumptions that reflect the reported amounts of assets
and liabilities as of the date of the condensed consolidated statements of
financial condition and of income and expenses for the periods presented in the
condensed consolidated statements of operations. The results of operations for
the three months ended March 31, 1999 are not necessarily indicative of the
results of operations to be expected for the remainder of the year. Certain
information and note disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to rules and regulations of the Securities and
Exchange Commission.
These unaudited condensed consolidated financial statements should be read
in conjunction with the audited consolidated financial statements and notes
thereto included in the Company's Form 10-K for the year ended December 31,
1998.
Certain reclassifications have been made to conform the prior period's
presentation to the current presentation.
2. Initial Public Offering
On February 18, 1998 the shareholders of Premier Mortgage Corp. ("Premier")
exchanged all of their outstanding shares of common stock for 2.5 million shares
of the Company. Following this exchange, the Company completed an initial public
offering of 1.25 million new shares of common stock at a price of $9 per share.
The Company received gross proceeds of $11.25 million and net proceeds of
approximately $9.2 million.
At the time of the exchange, the Company agreed to make a cash distribution
to its existing shareholders of $2.7 million, which was equal to a portion of
the Company's undistributed S corporation earnings. Approximately $1.9 million
of this distribution was paid during the quarter ended March 31, 1998, of which
$1 million was from the proceeds of the initial public offering. The balance of
the distribution was paid in installments, including interest on the
undistributed balance at 10% per annum, through February 18, 1999. The remaining
undistributed subchapter S corporation earnings of approximately $1.0 million
were reclassified from retained earnings to additional paid in capital.
3. Income Taxes
Prior to February 18, 1998, certain of the Company's subsidiaries had
elected to be treated as S corporations for both federal and state income tax
purposes. As a result, the income of the subsidiaries through February 18, 1998
was taxed directly to the individual shareholders. On February 18, 1998, in
conjunction with the Company's initial public offering, the S corporation
elections were terminated and the Company's subsidiaries became C corporations
for federal and state income tax purposes and, as such, became subject to
federal and state income taxes on their taxable income for the periods after
February 18, 1998. Therefore, the provision for income taxes for the three
months ended March 31, 1998 includes a provision for deferred income taxes of
$1,081,000 related to the temporary differences existing at the termination of
the S corporation elections, and pro forma net income for the three months ended
March 31, 1998 include pro forma income taxes as if the Company had been taxed
as a C corporation throughout the periods.
4. Earnings Per Share of Common Stock
Basic EPS is determined by dividing net income for the period by the
weighted average number of common shares outstanding during the same period.
Diluted EPS reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into common
stock or resulted in the issuance of common stock which would then share in the
earnings of the Company. The additional number of shares included in the
calculation of diluted EPS arising from issued stock options and warrants was
31,771 shares and 93,335 shares, respectively, for the three months ended March
31, 1999 and 1998.
Actual earnings per share data for periods prior to February 18, 1998 have
not been presented in the accompanying unaudited condensed consolidated
statement of operations because the Company was not a public company. Actual
earnings per share data for the period February 18, 1998 to March 31, 1998 have
not been presented in the accompanying unaudited condensed consolidated
statement of operations because management believes that such data would not be
meaningful given the relatively short time period and the impact of the
recognition of a deferred tax liability in connection with the change in tax
status. Therefore, the earnings per share data presented for the three months
ended March 31, 1998 is based on pro forma net income.
5. Supplemental Information
The Company's operations consist of two principal activities (a) mortgage
banking and (b) funding the purchase, rehabilitation and resale of residential
real estate. The following table sets forth certain information concerning these
activities (in thousands):
<TABLE>
<CAPTION>
Quarter Ended March 31,
1999 1998
<S> <C> <C>
Revenues:
Residential rehabilitation properties $8,545 $ 8,213
Mortgage banking 5,127 3,945
------- -----
$13,672 $12,158
Less: (1)
Expenses allocable to residential rehabil-
itation properties (cost of sales, interest
expense and compensation and benefits) 8,265 7,918
Expenses allocable to mortgage banking
(all other) 4,605 3,481
----- -----
$12,870 $11,399
Operating Profit:
Residential rehabilitation properties 280 295
Mortgage banking 522 464
---- ---
$802 $759
==== ====
Identifiable Assets (at March 31, 1999 and
December 31, 1998, respectively):
Residential rehabilitation properties $17,966 $16,492
Mortgage banking 63,450 96,317
------- --------
$81,416 $112,809
======= ========
</TABLE>
(1) In managing its business, the Company does not allocate corporate
expenses other than interest and compensation and benefits to its various
activities.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking statements. This Quarterly Report on Form
10-Q may contain forward-looking statements which reflect the Company's current
views with respect to future events and financial performance. These
forward-looking statements are subject to certain risks and uncertainties,
including those identified below, which could cause actual results to differ
materially from historical results or those anticipated. The words "believe,"
"expect," "anticipate," "intend," "estimate," and other expressions which
indicate future events and trends identify forward-looking statements. Readers
are cautioned not to place undue reliance upon these forward-looking statements,
which speak only as of their dates. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as the result
of new information, future events or otherwise. The following factors could
cause actual results to differ materially from historical results or those
anticipated: (1) the level of demand for mortgage credit, which is affected by
such external factors as the level of interest rates, the strength of various
segments of the economy and demographics of the Company's lending markets; (2)
the direction of interest rates; (3) the relationship between mortgage interest
rates and cost of funds; (4) federal and state regulation of the Company's
mortgage banking operations; (5) competition within the mortgage banking
industry and (6) the Company's management of rapid growth and expansion.
Results of Operations
Quarter Ended March 31, 1999 Compared to Quarter Ended March 31, 1998
Revenues. The following table sets forth the components of the Company's
revenues for the periods indicated:
<TABLE>
<CAPTION>
Quarters Ended March 31,
1999 1998
<S> <C> <C>
Sales of residential rehabilitation properties $8,544,978 $8,212,677
Gains of sales of mortgage loans, net 3,807,903 3,085,390
Interest earned 1,319,435 859.824
--------- ----------
Total revenues $13,672,316 $12,157,891
=========== ===========
</TABLE>
Revenues from the sale of residential rehabilitation properties increased
$332,000, or 4%, to $8.5 million for the quarter ended March 31, 1999 from $8.2
million for the quarter ended March 31, 1998. The number of residential
rehabilitation properties sold was 52 for the quarter ended March 31, 1999
compared to 53 for the quarter ended March 31, 1998.
Gains on sales of mortgage loans increased $723,000, or 23%, to $3.8
million for the quarter ended March 31, 1999 from $3.1 million for the quarter
ended March 31, 1998. This increase was primarily due to increased loan
originations and loan sales from the Company's existing offices. Mortgage loan
originations were $133.9 million and $100.5 million for the quarters ended March
31, 1999 and 1998, respectively. For the quarter ended March 31, 1999,
approximately 57% of the Company's mortgage originations were derived from its
retail mortgage operations and approximately 43% from its wholesale operations.
The following table summarizes the Company's mortgage originations (in
millions):
Quarters Ended March 31,
1999 1998
Conventional $88,734 $62,382
FHA/VA 38,832 21,527
Subprime 6,334 16,627
------- -------
Total $133,900 $100,536
======== ========
Although there can be no assurance thereof, the Company expects
mortgage originations to increase and therefore believes its gains on sales of
mortgage loans will increase.
Interest earned increased $460,000, or 53%, to $1.3 million for the quarter
ended March 31, 1999 from $860,000 for the quarter ended March 31, 1998. This
increase was primarily due to increased mortgage originations for the quarter
ended March 31, 1999 as compared to the quarter ended March 31, 1998 and sub
prime mortgage originations which generally are held for sale longer than
conventional mortgage originations.
Expenses. The following table sets forth the Company's expenses for the
periods indicated:
<TABLE>
<CAPTION>
Quarters Ended March 31,
1999 1998
<S> <C> <C>
Cost of sales - residential rehabilitation properties $7,804,194 $ 7,589,176
Compensation and benefits 2,730,631 2,189,078
Interest expense 1,179,956 900,525
Other general and administrative 1,155,644 720,313
----------- -----------
Total expenses $12,870,425 $11,399,092
=========== ===========
</TABLE>
Cost of sales - residential rehabilitation properties increased $215,000,
or 3%, to $7.8 million for the quarter ended March 31, 1999 from $7.6 million
for the quarter ended March 31, 1998.
Compensation and benefits increased $542,000, or 25%, to $2.7 million for
the quarter ended March 31, 1999 from $2.2 million for the quarter ended March
31,1998. This increase was primarily due to increased sales salaries and
commission, which are based substantially on mortgage loan originations and the
costs associated with the Company's expansion campaign. Total personnel
increased to 155 employees at March 31, 1999 from 107 at March 31, 1998.
Interest expense increased $279,000, or 31% to $1.2 million, for the period
ended March 31, 1999 from $901,000 for the quarter ended March 31, 1998. This
increase was attributable to the funding of residential rehabilitation
properties and the increase in mortgage originations funded through the
Company's warehouse lines of credit.
Other general and administrative expense increased $435,000, or 60%, to
$1.2 million for the quarter ended March 31, 1999 from $720,000 for the quarter
ended March 31, 1998. This increase was primarily due to increased expenses
incurred in connection with the growth in the operations of the Company
including rent and facilities expense, telephone and marketing.
Although there can be no assurance thereof, the Company believes that the
expected increase in mortgage origination volume and residential rehabilitation
activities will result in increased expenses.
Income before income taxes increased $43,000, or 6%, to $802,000 for the
quarter ended March 31, 1999 from $759,000 for the quarter ended March 31, 1998.
Net income increased $842,000 to $473,000 for the quarter ended March 31, 1999
from a net loss of ($369,000) primarily as a result of a provision for income
tax expense of $1,081,000 for the quarter ended March 31, 1998 which reflected
the change in tax status to a C corporation from an S corporation. Net income
increased $25,000, or 6%, to $473,000 for the quarter ended March 31, 1999 from
pro forma net income of $448,000 for the quarter ended March 31, 1998.
Liquidity and Capital Resources
The Company's principal financing needs consist of funding mortgage loan
originations and residential rehabilitation properties. To meet these needs, the
Company currently relies on borrowings under warehouse lines of credit and cash
flow from operations. The amount of outstanding borrowings under the warehouse
lines of credit at March 31, 1999 was $64.3million. The mortgage loans and
residential rehabilitation properties funded with the proceeds from such
borrowings secure the warehouse lines of credit.
On August 7, 1998, the Company entered into a Senior Secured Credit
Agreement with Chase Bank of Texas, National Association and PNC Bank (the
"Warehouse Line"). The Warehouse Line provides a warehouse line of credit of
$120 million ($90 committed) for its mortgage originations and residential
rehabilitation purchases. The Warehouse Line is secured by the mortgage loans
and residential rehabilitation purchases funded with the proceeds of such
borrowings. The Company has also pledged the stock of its residential
rehabilitation subsidiaries as additional collateral. Borrowings for residential
rehabilitation purchases are guaranteed by Ronald Friedman (President, Chief
Executive Officer and a Director of the Company) and Robert Friedman (Chairman
of the Board of Directors, Chief Operating Officer, Secretary and Treasurer of
the Company). The interest rate charged for borrowings under the Warehouse Line
is LIBOR plus 1 1/4% - 2 1/4, depending upon the collateral type. The
Warehouse
Line expires on August 6, 1999.
The warehouse lines of credit contain certain covenants limiting
indebtedness, liens, mergers, changes in control and sales of assets and
requires the Company to maintain minimum net worth and other financial ratios.
The Company expects to be able to renew or replace the Warehouse Line and the
other warehouse lines when the current terms expire.
On February 18, 1998, the Company completed an initial public offering of
new shares of common stock at a price of $9 per share. The Company received
gross proceeds of $11.25 million and net proceeds of approximately $9.2 million
from this offering. The proceeds from the offering were used for funding
mortgage originations and residential rehabilitation properties, working capital
and an S Corporation distribution.
Net cash provided by operations for the quarter ended March 31, 1999 was
$29.8 million. The Company generated cash from the $30.8 million decrease in
mortgage loans held for sale and receivable from sales of loans offset in part
by a $1.5 million net increase in residential rehabilitation properties. The
Company used cash to reduce borrowings under its warehouse lines of credit by
$30.3 million.
Impact of New Accounting Standards
In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities". SFAS No. 133 establishes
accounting and reporting standards for derivative instruments and for hedging
activities. It requires that an entity recognize all derivatives as either
assets or liabilities in the statement of financial condition and measure those
instruments at fair value. The accounting for changes in fair value of a
derivative (that is, gain and loss) depends on the intended use of the
derivative and the resulting designation. SFAS No. 133 is effective for fiscal
years beginning after June 15, 1999 and does not require restatement of prior
periods. Management is currently assessing the impact of SFAS No. 133 on its
financial condition and results of operations.
In October 1998, the FASB issued Statement of Financial Accounting
Standards No. 134, "Accounting for Mortgage-Backed Securities Retained after the
Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise"
("SFAS No. 134"). SFAS No. 134 confirms the accounting for securities retained
after the securitization of mortgage loans by a mortgage banking enterprise with
the accounting for securities retained after the securitization of other types
of assets by a non-mortgage banking enterprise. SFAS No. 134 is effective for
the first fiscal quarter beginning after December 15, 1998. Management of the
Company believes the implementation of SFAS No. 134 will not have a material
impact on the Company's financial condition or results of operations.
Year 2000 Compliance
The Company is currently in the process of evaluating its information
technology infrastructure for the Year 2000 ("Y2000") compliant. The company has
contacted the vendors of its information systems and has been informed that
these systems are Y2000 compliant. The Company's existing workstations and
fileservers are substantially Y2000 compliant and those workstations that are
not Y2000 compliant will be replaced during 1999. The Company does not believe
that the cost to modify its information technology infrastructure to be material
to its financial condition or results of operations nor does the Company
anticipate any material disruption of its operations as a result of a failure by
the Company to be compliant. However, there can be no assurance that there will
not be a delay in, or increased costs associated with, the need to address Y2000
issues. The Company also relies, directly and indirectly, on the businesses such
as third party service providers, creditors, financial institutions and
governmental entities. Even if the Company's computer systems are not materially
adversely affected by the Y2000 issues, the Company's business and operations
could be materially adversely affected by disruptions in the operations of other
entities with which the Company interacts.
<PAGE>
PART II-OTHER INFORMATION
Item 1. Legal Proceedings
The Registrant is a defendant in certain litigation arising in the normal
course of its business. In the opinion of the Registrant, any potential
liability with respect to such legal actions will not, individually or in the
aggregate, be material to the Registrant's financial position, liquidity or
future results of operations.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
<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.
PMCC FINANCIAL CORP.
(Registrant)
By /s/ Ronald Friedman
-------------------
Ronald Friedman
President and Chief Executive Officer
By /s/ Timothy J. Mayette
----------------------
Timothy J. Mayette
Chief Financial Officer
(Principal Accounting Officer)
Dated: May 13, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001048275
<NAME> PMCC Financial Corp.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-1-1999
<PERIOD-END> MAR-31-1999
<CASH> 1,585,491
<SECURITIES> 0
<RECEIVABLES> 60,472,047
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 80,597,867
<PP&E> 817,982
<DEPRECIATION> 0
<TOTAL-ASSETS> 81,415,849
<CURRENT-LIABILITIES> 67,887,386
<BONDS> 0
0
0
<COMMON> 37,500
<OTHER-SE> 13,485,965
<TOTAL-LIABILITY-AND-EQUITY> 81,415,849
<SALES> 0
<TOTAL-REVENUES> 13,672,316
<CGS> 0
<TOTAL-COSTS> 11,524,469
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,179,956
<INCOME-PRETAX> 801,891
<INCOME-TAX> 329,000
<INCOME-CONTINUING> 472,891
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 472,891
<EPS-PRIMARY> 0.13
<EPS-DILUTED> 0.13
</TABLE>
