UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 period ended June 30, 1998
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT of 1934
For the transition period from to
Commission File Number: 0-8187
GREENBRIAR CORPORATION
(Name of Small Business Issuer in its Charter)
Nevada 75-2399477
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
4265 Kellway Circle, Addison, Texas, 75244
(Address of principal executive offices)
(972) 407-8400
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past twelve 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
At August 12, 1998, the issuer had outstanding approximately 6,733.000 shares of
par value $.01 common stock.
<PAGE>
Greenbriar Corporation
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets -
June 30, 1998, and December 31, 1997..................... 3
Consolidated Statements of Earnings
Three and Six Months Ended June 30, 1998, and 1997....... 5
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1998, and 1997 ................ 6
Notes to Consolidated Financial Statements............... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................11
Part II. Other Information........................................14
Signatures...............................................15
2
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
- -----------------------------
Greenbriar Corporation
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
ASSETS June 30, December 31,
1998 1997
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 10,205 $ 23
Accounts receivable-trade 1,347 1,162
Stock subscription receivable -- 22,000
Other current assets 2,748 1,317
-------- --------
Total current assests 14,300 24,502
REAL ESTATE OPERATIONS HELD FOR SALE,
At lower of cost or market 1,326 3,097
DEFERRED INCOME TAX BENEFIT 4,750 2,632
INVESTMENT IN SECURITIES, AT COST 2,046 2,025
MORTGAGE NOTE RECEIVABLE, net of 3,617 3,617
Deferred gain of $3,083
PROPERTY AND EQUIPMENT, AT COST
Land and improvements 11,898 12,114
Buildings and improvements 81,028 80,758
Equipment and furnishings 6,163 5,898
Construction in progress -- 4,864
-------- --------
99,089 103,634
Less accumulated depreciation 6,623 5,486
-------- --------
92,466 98,148
DEPOSITS 4,777 3,619
GOODWILL AND OTHER INTANGIBLES 12,590 12,129
OTHER ASSETS 763 1,474
-------- --------
$136,635 $151,243
======== ========
3
<PAGE>
Greenbriar Corporation
CONSOLIDATED BALANCE SHEETS - CONTINUED
(Amounts in thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY June 30, December 31,
1998 1997
---- ----
(Unaudited)
CURRENT LIABILITIES
Current maturities of long-term debt $ 3,994 $ 13,403
Notes payable-affiliate 202 1,479
Accounts payable-trade 776 1,883
Accrued expenses 1,973 3,345
Other current liabilities 3,591 1,798
--------- ---------
Total current liabilities 10,536 21,908
MORTGAGE NOTES COLLATERALIZED BY
REAL ESTATE HELD FOR SALE 888 893
LONG-TERM DEBT 55,790 54,851
FINANCING OBLIGATIONS 10,815 10,815
OTHER LONG-TERM LIABILITIES 771 259
--------- ---------
TOTAL LIABILITIES 78,800 88,726
PREFERRED STOCK REDEMPTION OBLIGATION 12,181 --
STOCKHOLDERS' EQUITY
Preferred stock 289 289
Common stock $.01 par value authorized, 20,000
shares; issued and outstanding, 7,300 shares 73 73
Additional paid-in capital 71,841 83,339
Accumulated deficit (24,034) (18,669)
--------- ---------
48,169 65,032
Less stock purchase note receivable
(including $2,438 from related parties) (2,515) (2,515)
--------- ---------
45,654 62,517
--------- ---------
$ 136,635 $ 151,243
========= =========
4
<PAGE>
<TABLE>
<CAPTION>
Greenbriar Corporation
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except share data)
For The Three Month For The Six Month
Period Ended Period Ended
June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C>
(Unaudited) (Unaudited)
Revenue
Assisted living operations $ 14,129 $ 9,248 $ 28,162 $ 18,126
Other 43 37 83 64
-------- -------- -------- --------
14,172 9,285 28,245 18,190
Operating Expenses
Assisted living community
operations $ 9,719 $ 6,006 $ 19,282 $ 11,760
Lease expense 2,751 1,146 5,295 2,264
Depreciation and amortization 1,144 785 2,273 1,543
Corporate general and
administrative 1,550 1,234 3,079 2,703
-------- -------- -------- --------
15,164 9,171 29,929 18,270
-------- -------- -------- --------
Operating income (loss) (992) 114 (1,684) (80)
Other income (expense)
Interest and dividend income $ 244 $ 80 $ 570 $ 233
Interest expense (1,601) (1,589) (3,337) (3,169)
Other (481) 333 (846) 949
-------- -------- -------- --------
(1,838) (1,176) (3,613) (1,987)
-------- -------- -------- --------
Loss before income taxes
(2,830) (1,062) (5,297) (2,067)
Income tax benefit (1,144) (585) (2,118) (1,014)
-------- -------- -------- --------
Net loss (1,686) (477) (3,179) (1,053)
Preferred stock dividend
Requirement (1,177) (80) (2,189) (160)
Loss allocable to common
stockholders $ (2,863) $ (557) $ (5,368) $ (1,213)
======== ======== ======== ========
Net loss per common share-basic
and diluted $ (.39) $ (.08) $ (.73) $ (.18)
Weighted average number of common
and equivalent shares outstanding 7,310 6,564 7,310 6,564
</TABLE>
5
<PAGE>
Greenbriar Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
For the Six
Month Period Ended June 30,
1998 1997
--------- ---------
(Unaudited) (Unaudited)
Cash flows from operating activities
Net loss $ (3,179) $ (1,053)
Adjustments to reconcile net loss
to net cash used in operating activities
Discontinued operations -- (446)
Depreciation and amortization 2,273 1,543
Loss on sales of assets 644 --
Changes in operating assets and
liabilities
Accounts receivable (185) (553)
Deferred income taxes (2,118) (818)
Other current and non-current assets (3,496) (947)
Accounts payable and other liabilities (399) 23
-------- --------
Net cash used in Operating Activities (6,460) (2,251)
-------- --------
Cash flows from Investing activities
Proceeds from sale of assets 7,702 --
Collections of notes receivable -- 96
Purchase of property and equipment (2,093) (2,155)
Additions to notes receivable -- (281)
-------- --------
Net Cash provided by (used in) Investing
Activities 5,609 (2,340)
Cash flows from Financing Activities
Proceeds from borrowings 16,496 2,751
Payments on debt (26,243) (705)
Dividends on preferred stock (771) (145)
Purchase of common and preferred stock (472) (1)
Issuance of preferred stock 22,000 --
Exercise of stock options -- 206
-------- --------
Net Cash provided by Financing Activities 11,010 2,106
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 10,159 (2,485)
-------- --------
Cash and cash equivalents at beginning of
period 23 2,784
-------- --------
Cash and cash equivalents at end of period $ 10,182 $ 299
======== ========
6
<PAGE>
Greenbriar Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Six Months Ended June 30,1998, and 1997
NOTE A - BASIS OF PRESENTATION
- ------------------------------
The accompanying unaudited consolidated financial statements include the
accounts of Greenbriar Corporation and its majority-owned subsidiaries
(collectively, "the Company"). All significant inter-company transactions and
accounts have been eliminated.
The statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB and Item 310 of Regulation S-B and, accordingly, do
not include all of the information and footnotes required by generally accepted
accounting principles for interim financial statements. These financial
statements have not been examined by independent certified public accountants,
but in the opinion of management, all adjustments (consisting of normal
recurring accruals) necessary for a fair presentation of consolidated results of
operations, consolidated financial position and consolidated cash flows at the
dates and for the periods indicated, have been included.
Operating results for the three and six month periods ended June 30, 1998, are
not necessarily indicative of the results that may be expected for the year
ended December 31, 1998. For further information, refer to the consolidated
financial statements and notes thereto included in the Company's Annual Report
on Form 10-KSB and Form 10-KSB/A for the fiscal year ended December 31, 1997.
NOTE B - ACQUISITIONS
- ---------------------
VILLA RESIDENTIAL CARE HOMES, INC.
On December 29, 1997, Greenbriar acquired Dallas, Texas based Villa Residential
Care Homes, Inc., and related partnerships ("Villa"). Villa leased and operated
11 assisted living communities in Texas with a resident capacity of 955. A
Greenbriar subsidiary became the managing general partner of the operating
partnerships.
The purchase price was 184,476 shares of registered Greenbriar common stock and
10,464,321 operating partnership units convertible after a one year holding
period into 536,990 shares of Greenbriar common stock subject to future
registration rights. An additional 85,984 shares of common stock and 1,568,904
operating partnership units convertible into 80,510 shares of common stock
subject to future registration rights may be issued within two years based on
certain of the communities meeting performance requirements. The total number of
Greenbriar common shares to be issued in the transaction will therefore be
between 721,466 and 887,960. For accounting purposes, all the common shares into
which the operating units may be converted have been included in outstanding
common shares.
7
<PAGE>
WINDSOR GROUP
In October 1997, Greenbriar issued 160,000 shares of Greenbriar common stock in
the acquisition of the Windsor Group ("Windsor"). The Windsor Group owned and
operated two communities, had two under construction and had expansion underway
in one of the two existing communities. The completion of that construction will
provide the service capacity for an additional 122 residents.
The acquisitions have been accounted for as purchase transactions and Villa's
and Windsor's operations are reflected in the consolidated statement of earnings
beginning January 1, 1998, and October 1, 1997, respectively.
The following table presents pro forma unaudited consolidated results of
operations for the six month period ended June 30, 1997, assuming that the
acquisition had taken place on January 1, 1997. The pro forma results are not
necessarily indicative of the results of operations that would have occurred had
the acquisition been made on January 1, 1997, or of future results of operations
of the combined companies.
For the Six Month
Period Ended June 30,1997
(Amounts in Thousands,
except per share data)
(Pro Forma)
-----------
(Unaudited)
Revenue $ 22,141
Net loss $ (1,409)
Preferred stock dividend requirement $ (160)
Loss allocable to common shareholders $ (1,569)
NET LOSS PER SHARE-BASIC AND DILUTED $ (.24)
NOTE C - DISPOSITION OF REAL ESTATE OPERATIONS
- ----------------------------------------------
At January 1, 1998, the Company owned three shopping centers in Georgia. While
the centers were all profitable, they did not fit into the Company's long range
strategic plan and commitment to the assisted living industry. In June 30, 1998,
the Company sold one of the shopping centers for approximately $1.5 million
dollars. The Company is actively attempting to sell the remaining two centers
which as of June 30, 1998, have an aggregate book value of $1,326,000.
In June 1998, the Company sold one of its assisted living communities in North
Carolina. The proceeds of $5.8 million dollars were used to reduce long term
debt.
8
<PAGE>
<TABLE>
<CAPTION>
NOTE D - LONG-TERM OBLIGATIONS
- ------------------------------
Long-term debt is comprised of the following (in thousands):
June 30, December 31,
1998 1997
---- ----
<S> <C> <C>
Notes payable to financial institutions maturing through 2015; fixed and
variable Interest rates ranging from 7.5% to 11.75%; collateralized by
property, fixtures, equipment and the assignment of rents $ 30,359 $ 30,090
Notes payable to individuals and companies maturing through 2022; variable and
fixed interest rates ranging from 7% to 12% collateralized by real property,
personal property, fixtures, equipment and the assignment of rents 4,960 9,544
Note payable to the Redevelopment Agency of the City of Corona, California,
payable into a sinking fund semi-annually in increasing amounts from $65 to
$420 through May 1, 2015; variable interest rate of 5.725% at June 30, 1997;
collateralized by personal property, land, fixtures and the 7,405 7,495
assignment of rents
Notes payable to related parties maturing in 2001; interest rates ranging from
9.25% to 12% - 897
Notes payable to financial institution maturing through 2000; bearing interest
at prime plus .50% to 1.25%; collateralized by property and equipment 2,252 8,023
Mortgage note payable to a financial institution maturing in 2007; bearing
interest at 11.35%; collateralized by property and equipment 14,061 11,413
Other 747 792
-------- --------
59,784 68,254
Less: current maturities 3,994 13,403
-------- --------
$ 55,790 $ 54,851
========= ========
</TABLE>
The Company operates two communities that are financed through sale-leaseback
obligations. At the end of the tenth year of the fifteen-year leases, the
Company has options to repurchase the communities for the greater of their sales
price or their current replacement costs less depreciation plus land at current
fair market value. Accordingly, these transactions have been accounted for as
financings, and the Company has recorded the proceeds from the sales as
9
<PAGE>
financing obligations, classified the lease payments as interest expense and
continues to carry the communities on its books and to record depreciation.
<TABLE>
<CAPTION>
NOTE E - PREFERRED STOCK
- ------------------------
The following summarizes the various classes of preferred stock at December 31,
1997, and June 30, 1998. (amounts in thousands except per share data):
<S> <C>
Series B cumulative convertible preferred stock, $.10 par value; liquidation
value of $100; authorized, 100 shares; issued and outstanding, 1 share. $ 1
Series D cumulative convertible preferred stock, $.10 per value; liquidation
value of $3,375; authorized, issued and outstanding 675 shares
68
Series F voting cumulative convertible preferred stock, $.10 par value;
liquidation value of $14,000; authorized, issued and outstanding,
1,400 shares 140
Series G cumulative convertible preferred stock, $.10 par value;
liquidation value of $8,000; authorized, issued and outstanding, 800 shares 80
---
$289
----
</TABLE>
The Series B preferred stock has a liquidation value of $100 per share and
is convertible into common stock over a ten-year period at prices
escalating from $25.00 per share in 1993 to $55.55 per share by 2001.
Dividends at a rate of 6% are payable in cash or preferred shares at the
option of the Company.
The Series D preferred stock has a liquidation value of $5 per share and is
convertible into common stock at $10.00 per share. Cumulative dividends are
payable in cash at a rate of 9.5%.
The Series F voting preferred stock has a liquidation value of $10.00 per
share and each share is convertible into 5.7 shares of common stock. The
holder has the option to convert beginning in January 2000 and must convert
by January 2001. Dividends are payable in cash at a rate of 6%.
The Series G preferred stock has a liquidation value of $10.00 per share
and each share is convertible into 5.7 shares of common stock. The holder
has the option to convert beginning in January 2000 and must convert by
January 2001. Dividends are payable in cash at a rate of 6%.
10
<PAGE>
The Series F and Series G preferred shares were sold in December 1997, for
$22,000,000, less selling and offering costs of $453,000. Payment was
received in January 1998. In connection with the sale, the Company entered
into an agreement which provides that, on the date of conversion, if the
value of the Company's common stock has not increased at an annual rate of
at least 14% during the period the preferred shares are outstanding, the
Company is required to make a Cash Payment ("the Cash Payment") to the
preferred stockholders equal to the market price deficiency on the shares
received upon conversion.
The 14% guaranteed return will be accreted by a charge to accumulated
deficit. The amount of the Cash Payment that would be required assuming
conversion at each balance sheet date will be transferred from stockholders
equity to temporary equity. At June 30, 1998, a Cash Payment of $12,181,000
would have been due assuming conversion took place.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
- ------- ---------------------------------------------------------
Overview
During 1994 the Company began a series of steps to focus its business on the
development, management and ownership of assisted living properties. The Company
began construction of its first assisted living community in July 1995, and
opened that community to residents on May 30, 1996. By July 1, 1996, the Company
(excluding acquisitions) had three additional assisted living communities under
construction. In order to increase the Company's presence in the assisted living
industry, create geographic diversity and obtain experienced personnel, the
Company acquired Wedgwood Retirement Inns (Wedgwood) in March 1996 and American
Care Communities, Inc. ("American Care") in December 1996, Windsor in October
1997, and Villa in December 1997. The acquisitions of Wedgwood, Windsor and
Villa have been accounted for as purchases, and the historical financial
statements of the Company do not include any revenues or earnings (losses)
attributed to those operations prior to the acquisition. The American Care
acquisition has been accounted for as a pooling of interests and accordingly,
the Company's financial statements have been restated to include the accounts
and operations of American Care for all periods prior to the acquisition.
Results of Operations
- ---------------------
Discussion of three and six month periods ended June 30, 1998, compared to three
and six month periods ended June 30, 1997.
Revenues and Operating Expenses from Assisted Living Operations
- ---------------------------------------------------------------
Revenues were $14,172,0000 and $28,245,000 for the three and six months ended
June 30, 1998, as compared to $9,285,000 and $18,190,000 for the three and six
months ended June 30, 1997. Community operating expenses, which consists of
assisted living community expenses, lease expense and depreciation and
amortization, were $13,614,000 and $26,850,000 for the three and six months
ended June 30, 1998, as compared to $7,937,000 and $15,567,000 for the three and
six months ended June 30, 1997.
Villas and Windsor were acquired in the fourth quarter of 1997, in transactions
that were accounted for as purchases. The revenue and related expenses for the
communities acquired through these acquisitions are not included in the amounts
for 1997. The revenues and related expenses for these communities for the three
11
<PAGE>
and six months ended June 30, 1998, were $3,179,319 and $3,625,407, and
$6,544,986 and $7,360,673 respectively. The balance of the increases are due to
the opening by Greenbriar of new communities during 1997, and increased census
at the existing communities.
<TABLE>
Three Month Period Ended
June 30, 1998
(Amounts in thousands)
Stabilized Start-up Total
Communities(1) Communities(2)
<S> <C>
Assisted Living Community Income $ 13,175 $ 954 $ 14,129
Assisted Living Community Operating
Expenses 8,775 944 9,719
-------- --------- --------
Gross Operating Income 4,400 10 4,410
Lease Expense 2,327 424 2,751
Community depreciation and
amortization 1,006 138 1,144
-------- --------- --------
Income (loss) from community
operations $ 1,067 $ (552) $ 515
======== ========= ========
</TABLE>
(1) Stabilized communities are those communities that have been operating
for one year or have achieved stabilized occupancy of 95%.
(2) Start-up communities are those communities that have not been
operating for one year and have not achieved a stabilized occupancy of
95% or more.
(3) The Company has 46 stabilized and 4 start-up communities.
(4) Community operating expense does not include corporate general and
administrative expense or lease expense for the respective
communities.
Corporate General and Administrative Expenses
- ---------------------------------------------
General and administrative expenses were $1,550,000 and $3,079.000 for the three
and six months ended June 30, 1998, compared to $1,234,000 and $2,703,000 for
the three and six months ended June 30, 1997. The increases are due primarily to
the growth in the number of communities.
Interest and Dividend Income
- ----------------------------
Interest and dividend income for the three and six months ended June 30, 1998,
was $244,000 and $570,000 compared to $80,000 and $233,000 for the comparable
period in 1997. In the first quarter of 1998, the Company received proceeds from
the sale of preferred stock of $22,000,000. The increase in interest and
dividend income is due to an increase in cash available for investment purposes.
12
<PAGE>
Interest Expense
- ----------------
Interest expense for the three and six months ended June 30, 1998, was
$1,601,000 and $3,337,000 compared to $1,589,000 and $3,169,000 for the
comparable period in 1997. The increase in interest expense represents the
interest incurred on the mortgage debt and financing obligations on the acquired
communities, as well as debt incurred on new communities which opened in 1997.
Other Income (Expense)
- ----------------------
Other income (expense) for the three and six months ended June 30, 1998, was
($481,000) and ($846,000) compared to $333,000 and $949,000 for the same period
in 1997. The other income in 1997, is the result of a gain recorded on the sale
of assets. The losses recorded in 1998, are attributable to a loss on the sale
of assets as well as a minority interest in a community owned by the Company.
Liquidity and Capital Resources
- -------------------------------
At June 30, 1998, the Company had working capital of $3,764.000.
In December 1997, the Company sold Series F and Series G preferred shares for
$22,000,000 less selling and offering costs of $453,000. Payment was received in
January 1998.
Throughout 1997, and into 1998, the Company has been refinancing certain of its
long term debt. In July 1997, and January 1998, the Company refinanced the debt
on a total of six of its communities resulting in a lower interest rate and
additional working capital of $2,800,000 and $1,935,000 respectively.
In June 1998, the company sold an assisted living community in North Carolina
for approximately $5,800,000. The proceeds were used to reduce long term debt.
As of June 30, 1998, the Company has loans in place or has received commitments
for future financing, subject, in the case of the commitments, to final
documentation, as follows:
(i) Health Care REIT, Inc. has issued a commitment to provide $90 million to
acquire and pay 100% of the construction costs of assisted living communities to
be leased to the Company. The term of the leases will be the maximum term
available for operating lease treatment but not less than 13 years plus three
five-year renewal options. The credit facility will expire on December 31, 2000.
A 1 % commitment fee is required, as each lease is entered into. The Company
will have the option to purchase each community at the end of the term for its
original cost plus 50% of the increase in its fair market value. As additional
security to the lessor, the Company will provide a letter of credit for 5% of
the amount financed, a first lien on personal property and receivables of the
community, and subordination of management fees and rentals from subtenants.
(ii) In 1995 Investors Real Estate Trust ("IRET") issued a commitment to provide
100% of the construction costs up to $2,810,000 for Sweetwater Springs in Lithia
Springs, Georgia that opened in October 1996. Upon completion the community was
13
<PAGE>
leased to the Company for a term of 15 years. In 1996 the commitment was
increased by $1,540,000 to a maximum of $4,350,000 in order to provide for the
construction of a second phase of the community consisting of 16 Alzheimer's
special care units. The Company has an option to purchase the Community at fair
market value during the first nine months of the fourteenth year of the lease.
The lease is secured by the community.
Construction of the second phase has been deferred indefinitely. Though some of
the additional funding has been utilized, the remaining funds available are
considered sufficient to complete the second phase.
The Company believes it has adequate resources to complete its communities
currently under construction and development and plans to use the balance of
such committed sources and its net working capital in excess of operating needs
for future development of assisted living communities.
Future development activities of the Company are dependent upon obtaining
capital and financing through various means, including financing obtained from
sale/leaseback transactions, construction financing, long-term state bond
financing, debt or equity offerings and, to the extent available, cash generated
from operations. There can be no assurance that the Company will be able to
obtain adequate capital to finance its projected growth.
Forward Looking Statements
- --------------------------
Certain statements included in this Management's Discussion and Analysis are
forward looking statements that predict the future development of the Company.
The realization of these predictions will be subject to a number of variable
contingencies, and there is no assurance that they will occur or be realized in
the time frame proposed. The risks associated with the potential actualization
of the Company's plans include: contractor delays, the availability and cost of
financing, availability of managerial oversight and regulatory approvals, to
name a few.
PART II. OTHER INFORMATION
- --------------------------
Not applicable
14
<PAGE>
Greenbriar Corporation
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
registrant has duly caused this report to be signed on its behalf by
undersigned, thereunto duly authorized.
Greenbriar Corporation
Date: August 12, 1998 By: /s/ Gene S. Bertcher
---------------------
Executive Vice President
Chief Financial Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Form 10-Q unaudited consolidated balance sheet as of June 30, 1998 and the
unaudited consolidated statement of earnings for the six month period ended
June 30, 1998 and is qualified in its entirety by reference to such
financials statements.
</LEGEND>
<CIK> 0000105744
<NAME> Greenbriar Corporation
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<CASH> 10,205
<SECURITIES> 0
<RECEIVABLES> 1,347
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 14,300
<PP&E> 99,089
<DEPRECIATION> 6,623
<TOTAL-ASSETS> 136,635
<CURRENT-LIABILITIES> 10,536
<BONDS> 55,790
0
289
<COMMON> 73
<OTHER-SE> 45,292
<TOTAL-LIABILITY-AND-EQUITY> 136,635
<SALES> 0
<TOTAL-REVENUES> 28,245
<CGS> 0
<TOTAL-COSTS> 29,929
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,337
<INCOME-PRETAX> (5,297)
<INCOME-TAX> 2118
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,179)
<EPS-PRIMARY> (.73)
<EPS-DILUTED> 0
</TABLE>
