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 MARCH 31, 2000 OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 333-51713
MARKET HUB PARTNERS STORAGE, L.P.
(Exact name of registrant as specified in its charter)
DELAWARE 76-0558052
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
16420 Park Ten Place, Suite 420
Houston, Texas
77084
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip code)
(281) 597-6777
- --------------------------------------------------------------------------------
(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. Market Hub Partners Storage, L.P. is no
longer obligated by Section 13 or 15(d) of the Securities Exchange Act of 1934
to file periodic reports. This filing is being submitted to satisfy contractual
obligations of the filer.
YES [ ] NO [X]
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MARKET HUB PARTNERS STORAGE, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
MARCH 31, DECEMBER 31,
2000 1999
--------- ------------
(IN THOUSANDS)
ASSETS
Current Assets:
Cash and cash equivalents ...................... $ 11,480 $ 14,029
Accounts and notes receivable .................. 13,942 13,802
Other current assets ........................... 93 172
--------- ------------
Total current assets ........................ 25,515 28,003
--------- ------------
Property and Equipment:
Natural gas storage facilities ................. 195,297 195,225
Construction in progress ....................... 719 325
Less accumulated depreciation .................. (23,974) (22,584)
--------- ------------
172,042 172,966
Other Assets ...................................... 3,716 3,868
--------- ------------
Total Assets ...................................... $ 201,273 $ 204,837
========= ============
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities:
Accounts payable, trade and other .............. 146 166
Other accrued liabilities ...................... 1,609 4,756
--------- ------------
Total current liabilities ................... 1,755 4,922
Long-Term Debt .................................... 115,000 115,000
Partners' capital ................................. 84,518 84,915
--------- ------------
Total liabilities and Partner's Capital ........... $ 201,273 $ 204,837
========= ============
See Notes to Consolidated Financial Statements
-2-
<PAGE>
MARKET HUB PARTNERS STORAGE, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
----------------------
MARCH 31, MARCH 31,
2000 1999
--------- ---------
(IN THOUSANDS)
Revenues:
Salt cavern storage revenues .................... $ 7,925 $ 7,943
Hub services revenues ........................... 314 103
--------- ---------
Total revenues .................................. 8,239 8,046
--------- ---------
Operating Expense:
Operations and maintenance ...................... 548 568
Plant administrative ............................ 130 170
Property taxes .................................. 315 258
General and administrative ...................... 982 1,078
Depreciation and amortization ................... 1,465 1,674
--------- ---------
Total operating expenses ........................ 3,440 3,748
--------- ---------
Operating income ..................................... 4,799 4,298
Interest expense ..................................... 2,463 2,302
Interest income ...................................... 267 279
--------- ---------
Net Income ........................................... $ 2,603 $ 2,275
========= =========
See Notes to Consolidated Financial Statements
-3-
<PAGE>
MARKET HUB PARTNERS STORAGE, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
----------------------
MARCH 31, MARCH 31,
2000 1999
--------- ---------
(IN THOUSANDS)
<S> <C> <C>
Cash Flows from Operating Activities:
Net income ............................................ $ 2,603 $ 2,275
Adjustments to reconcile net income to cash
provided by operating activities
Depreciation and amortization ..................... 1,465 1,674
Changes in assets and liabilities:
Decrease (increase) in accounts receivable ........ (140) 867
Decrease (increase) in other current assets ....... 79 (235)
Decrease in other assets .......................... 77 95
Decrease in trade payables and accrued liabilities (3,167) (7,097)
--------- ---------
Net cash (used in) provided by operating activities 917 (2,421)
--------- ---------
Cash Flows from Investing Activities:
Capital expenditures .................................. (466) (1,432)
--------- ---------
Net cash used in investing activities ................. (466) (1,432)
Cash Flows from Financing Activities:
Capital distributions to partners ..................... (3,000) --
--------- ---------
Net cash provided by financing activities ............. (3,000) --
--------- ---------
Net decrease in cash and cash equivalents ............. (2,549) (3,853)
Cash and cash equivalents at beginning of period ...... 14,029 19,592
--------- ---------
Cash and cash equivalents at end of period ............ $ 11,480 $ 15,739
========= =========
Supplementary Disclosure of Cash Flow Information:
Cash paid for interest (net of amounts capitalized) ... $ -- $ --
</TABLE>
See Notes to Consolidated Financial Statements
-4-
<PAGE>
MARKET HUB PARTNERS STORAGE, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
2000
------------------
(IN THOUSANDS)
Partner Contributions (Distributions) ................... $ (3,000)
Net Income .............................................. 2,603
------------------
Net Increase (Decrease) in Capital ...................... (397)
Partners' Capital Balance, Beginning of Period .......... 84,915
------------------
Partners' Capital Balance, End of Period ................ $ 84,518
==================
See Notes to Consolidated Financial Statements
-5-
<PAGE>
MARKET HUB PARTNERS STORAGE, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(ALL AMOUNTS IN THOUSANDS, UNLESS OTHERWISE NOTED)
NOTE 1. BASIS OF PRESENTATION
Market Hub Partners Storage, L.P. (the "Company") owns and operates two
natural gas market hubs, "Moss Bluff" and "Egan," located near Houston, Texas
and in Acadia Parish, Louisiana, respectively, which provide producers,
end-users, local distribution companies, pipelines and natural gas marketers
with "unbundled" high deliverability storage services, cash market trading, real
time title tracking and other hub services. The Company was formed on December
31, 1997 as a Delaware limited partnership. The Company is wholly owned by
Market Hub Partners, L.P. ("MHP") through its direct 99.99% limited partner
interest and its subsidiary's, Market Hub Partners Storage, L.L.C., .01% general
partner interest. MHP is owned by Tioga Gas Storage Company, TPC Gas Storage
Services, L.P., TPC Storage Holding Corp. and NI Energy Services, Inc., all of
which are indirect subsidiaries of NiSource Inc.
The accompanying consolidated financial statements and notes for the
Company have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, certain footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to such rules and
regulations. In connection with the preparation of these financial statements,
management was required to make estimates and assumptions that affect the
reported amount of assets, liabilities, revenues, expenses and disclosure of
contingent liabilities. Actual results could differ from such estimates.
The consolidated financial statements included herein are unaudited;
however, they include all adjustments (all of which are normal and recurring)
which, in the opinion of management, are necessary to fairly state the
consolidated financial position of the Company as of March 31, 2000 and 1999,
and the results of its operations and its cash flows for the three months ended
March 31, 2000 and 1999.
NOTE 2. LONG-TERM DEBT
SENIOR UNSECURED NOTES - In March 1998, the Company completed the sale of
$115 million in 8.25% senior unsecured notes due 2008 (the "Senior Unsecured
Notes"). The net proceeds from the sale were approximately $110.9 million.
Proceeds of the placement have been used by the Company to repay the outstanding
principal amount, $53.5 million, of 8.10% secured indebtedness (the "Secured
Notes"), with accrued interest of $758,000 and prepayment penalties of $5.1
million, and to pay a distribution to MHP in the amount of $17.6 million, which
was subsequently used by MHP to repay debt owed by MHP to its partners. In
addition, the Company loaned approximately $5.0 million of the net proceeds, at
a rate of prime plus 2%, to a subsidiary of MHP to develop another project (see
Note 3). The remaining proceeds were used to fund capital expenditures and
business operations. Subsequent to the Senior Unsecured Notes issuance, the
Company completed an offering to exchange all of the outstanding Senior
Unsecured Notes for newly issued notes (the "144A Notes"). The 144A Notes have
been registered with the Securities and Exchange Commission under the Securities
Act of 1933, as amended, but are otherwise substantially the same in all
material respects to the Senior Unsecured Notes surrendered for exchange.
If various conditions are met under the indenture governing the 144A Notes
(the "Indenture"), the Company may make certain distributions. As permitted by
the Indenture, the Company distributed $2.5 million to MHP in 1998. In addition,
the Indenture allows the Company to make permitted distributions not to exceed,
in the aggregate, 35% of net income before extraordinary item for any period, as
well as restricted payments not to exceed, in the aggregate, 50% of the
difference between net income for the period beginning on January 1, 1998 and
ending on the last day of the Company's last fiscal quarter for which quarterly
or annual consolidated financial statements are available next preceding the
date the restricted payment is made and the permitted distribution amount for
that same period. In 1999, the Company paid $4 million in permitted
distributions and restricted payments of $3.5 million to MHP. During the first
quarter of 2000, the Company paid a dividend payment of $1.0 million and a
permitted distribution of $2 million.
-6-
<PAGE>
REVOLVING CREDIT FACILITY. Pursuant to the Indenture for the 144A Notes,
the Company is allowed to execute a revolving credit facility. In April 1998,
the Company executed a credit facility (the "Credit Facility") with Bank One,
Texas, N.A. that expires December 2000. The Credit Facility provides for
revolving credit borrowings up to $20.0 million in the aggregate at any time.
Borrowings under the Credit Facility will bear interest at a rate per annum, at
the Company's option, equal to: (i) the bank's prime rate or (ii) the London
Interbank Offered Rate plus 2%. The Credit Facility is secured by substantially
all the assets of the Company and includes certain covenants applicable to the
Company, including requirements that the Company comply with certain financial
ratios. The Company has not made any borrowings under the Credit Facility as of
March 31, 2000.
NOTE 3. NOTES RECEIVABLE
Included in the accounts and notes receivable balance is a $5 million
note, payable on demand, bearing interest at prime plus 2%, issued by the
Company to a wholly owned subsidiary of MHP. The note was used to fund a portion
of the pre-construction expenditures associated with a development project in
Tioga County, Pennsylvania. The Company expects that the note will be repaid
when financing is secured for the Tioga project.
NOTE 4. PROPERTY, PLANT AND EQUIPMENT
Additions, renewals and betterments that materially add to productive
capacity or extend the life of an asset are capitalized. Expenditures for
routine maintenance, repairs and renewal cost are expensed as incurred.
Depreciation of storage facilities and equipment is provided using
straightline method over estimated useful lives of the assets ranging from 15 to
40 years. Effective January 1, 2000, the Company changed the estimated lives of
the caverns from 30 to 40 years. The effect of this change on the quarter ended
March 31, 2000 was approximately $153,046.
NOTE 5. NEW ACCOUNTING PRONOUNCEMENTS
The Company continues to analyze the effects of adoption of the rules
promulgated by Financial Accounting Standard No. 133, "Accounting for Derivative
Instruments and Hedging Activities" ("Statement No. 133") as amended by
Financial Accounting Standard No. 137. Provisions in Statement No. 133 will
affect the accounting and disclosure of contractual arrangements and operations
of the Company. Provisions of Statement No. 133 must be applied to fiscal
periods beginning after June 15, 2000. The Company intends to adopt the
provisions of Statement No. 133 within the timeframe and in accordance with the
requirements provided by that statement. The Company is in the process of
evaluating the impact that this statement will have on its financial statements.
-7-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with
Management's Discussion and Analysis of Financial Condition and Results of
Operations included in the Company's annual report on Form 10-K for the year
ended December 31, 1999, and the Company's Consolidated Financial Statements,
and the notes thereto, included in Item 1 of this Report.
GENERAL
The Company markets its natural gas storage services to utilities,
pipeline companies, local distribution companies, producers and natural gas
marketers. The Company receives fees for use of its salt cavern storage
facilities, which generally include a contractual demand charge for the
reservation of storage space and, in some instances, injection and withdrawal
fees for the actual use of the space. A relatively stable source of revenues
exists from several long-term, demand charge contracts with customers at the
Company's two operating facilities. These contracts provide a minimum level of
revenue regardless of usage by the customer.
The Company also offers short-term firm and interruptible hub services to
its customers. These services include balancing, wheeling, title transfer,
imbalance trading and loaning natural gas. The Company is currently using hub
services to generate incremental revenue and to provide existing and potential
long-term customers with an inexpensive way to incorporate these services in
their natural gas portfolios. The Company believes that hub service transactions
may lead to additional long-term storage contracts over time.
CAPACITY EXPANSIONS
The Company's financial condition and results of operations are directly
related to the working storage capacity of the Company's storage facilities. As
of March 31, 2000, working storage capacity was approximately 11.3 billion cubic
feet ("Bcf") at Moss Bluff and approximately 11.4 Bcf at Egan, for a total of
22.7 Bcf. Smugging operations have been suspended at both facilities for
operational reasons and will re-commence at Moss Bluff and Egan in the second
and third quarters of 2000, respectively.
-8-
<PAGE>
Below is a chart depicting the growth in both working and leased gas
capacity at each of the facilities for the period ending March 31, 2000 and 1999
(in Bcf's, except for percentages):
MARCH 31, MARCH 31,
2000 1999
--------- ---------
MOSS BLUFF
Working gas capacity (1) .......................... 11.3 10.8
Average working gas capacity (2) .................. 11.3 10.6
Leased gas capacity (1) ........................... 11.4 11.0
Percentage of working gas capacity leased (1) ..... 101.0% 102.0%
Average leased gas capacity (2) ................... 11.4 10.8
EGAN
Working gas capacity (1) .......................... 11.4 10.0
Average working gas capacity (2) .................. 11.4 9.8
Leased gas capacity (1) ........................... 9.4 9.7
Percentage of working gas capacity leased (1) ..... 82.5% 97.0%
Average leased gas capacity (2) ................... 9.4 9.7
CONSOLIDATED FACILITY TOTALS
Working gas capacity (1) .......................... 22.7 20.8
Average working gas capacity (2) .................. 22.7 20.4
Leased gas capacity (1) ........................... 20.8 20.7
Percentage of working gas capacity leased (1) ..... 91.6% 100.0%
Average leased gas capacity (2) ................... 20.8 20.5
(1) As of March 31 of the years indicated.
(2) From January 1 to March 31 of the years indicated.
RESULTS OF OPERATIONS
The Company was formed by MHP on December 31, 1997 to hold the equity
interests of Moss Bluff, Egan and their respective general partners.
COMPARISON OF FIRST QUARTER 2000 AND FIRST QUARTER 1999
REVENUES. Revenues for the first quarter of 2000 were $8.2 million
compared to $8.0 million for the first quarter of 1999, an increase of $0.2
million, or 3%. This $0.2 million increase is attributable to an increase in hub
service revenues. The increase in hub service revenues is principally due to an
increase in the market.
OPERATING EXPENSES. Operating expenses were $3.4 million for the first
quarter of 2000 compared to $3.7 million for the first quarter of 1999, a
decrease of $0.3 million, or 8%. The decrease is primary a result of extending
the useful life of the caverns from 30 years to 40 years.
OPERATING INCOME. As a result of the factors described above, operating
income for the first quarter of 2000 increased to $4.8 million from $4.3 million
in the first quarter 1999, an increase of $0.5 million, or 12%.
NET INTEREST EXPENSE. Net interest expense was $2.2 million for the first
quarter of 2000 compared to $2.0 million for the first quarter of 1999, an
increase of $0.2 million, or 10%. This increase is the result of a decrease in
capitalized interest due to having a lower construction work in progress balance
for the first quarter of 2000.
-9-
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
GENERAL. In April 1998, the Company executed a credit facility (the
"Credit Facility") with Bank One, Texas, N.A. that expires December 2000. The
Credit Facility provides for revolving credit borrowings up to $20.0 million in
the aggregate outstanding at any time. Borrowings under the Credit Facility will
bear interest at a rate per annum, at the Company's option, equal to: (i) the
bank's prime rate or (ii) the London Interbank Offered Rate plus 2%. The Credit
Facility is secured by substantially all the assets of the Company and includes
certain covenants applicable to the Company, including requirements that the
Company comply with certain financial ratios. The Company has not made any
borrowings under the Credit Facility as of March 31, 2000.
CASH FLOWS. Net cash (used in) provided by operating activities was $0.9
million for the first three months of 2000 and ($2.4) million for the first
three months of 1999. The increase in cash flows from operating activities is
primarily due to an increase in current liabilities during the first quarter of
2000.
Net cash used in investing activities during the first three months of
2000 and 1999 consisted of capital expenditures to increase working gas storage
capacity. The Company spent $0.5 million and $1.4 million during the first three
months of 2000 and 1999, respectively, relating to the storage capacity
expansion program.
Net cash (used in) provided by financing activities was ($3.0) million
during the first three months of 2000. As discussed in Note 2 to the
Consolidated Financial Statements, the Company distributed $3 million to MHP
during the first quarter of 2000.
CAPITAL EXPENDITURES. As part of its capital expenditure program that
commenced in 1997 to expand working gas capacity to a combined 24 Bcf, the
Company has forecasted for fiscal year 2000 capital expenditures of
approximately $689,000 and $2.3 million for Moss Bluff and Egan, respectively,
to increase working gas capacity to 24 Bcf. In addition, the Company anticipates
expanding both Moss Bluff and Egan to 16 Bcf each during 2001 through 2004.
Capital expenditures associated with this expansion are estimated to be $19
million. After this additional capacity has been added, management expects that
capital expenditures needed to maintain these facilities will be relatively low.
The Company projects that its capital expenditures associated with upgrade and
maintenance for 2000 will be less than $1.5 million. The Company believes that
funds generated from operations will be sufficient to meet its liquidity
requirements for the foreseeable future.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company does not have any material risk exposure to market changes
that affect market risk sensitive instruments, as interest on all of the
Company's material long-term debt accrues at a fixed rate.
-10-
<PAGE>
PART II-OTHER INFORMATION
Item 1. Legal Proceedings
On April 1, 1999, NiSource acquired TPC, including its interest in Market
Hub Partners, L.P. As a result of the TPC acquisition, NiSource increased its
indirect ownership of MHP to approximately 77.3%. The sale may have triggered an
obligation of the Company to make certain change of control incentive payments
under the Company's employment agreements with its executive officers and
certain other employees. Upon a change of control under such employment
agreements, Messrs. Hooker, Clark, Cook, Lorio, Gatewood and Allemandou may have
been entitled to receive an amount equal to 2.0%, 1.25%, 1.25%, 1.0%, 1.0% and
1.0%, respectively, of the increase in value of the Company from January 1, 1998
to the date a change of control occurs, calculated pursuant to the employment
agreements. The amount of any such payment that may be required has not yet been
quantified, but may be material.
Mr. Hooker, former Executive Vice President and Chief Operating Officer,
has filed a lawsuit against the Company and certain of its affiliates (Market
Hub Partners, L.P., Market Hub Partners, Inc., Market Hub Partners Storage,
L.L.C. and NiSource Inc.) in the District Court of Harris County, Texas, 269th
Judicial District. Messrs. Clark, Lorio, Gatewood, Allemandou and Cook (each of
whom was at that time an officer or employee of the Company) have filed a
lawsuit against the Company and certain of its affiliates (Market Hub Partners,
L.P., Market Hub Partners, Inc., Market Hub Partners Storage, L.L.C. and
NiSource Inc.) in the District Court of Harris County, Texas, 157th Judicial
District. The lawsuits, now consolidated before the 157th Judicial District,
seek payment of amounts allegedly owed to the former officers or employees under
their employment agreements with the Company in connection with the NiSource
acquisition of the stock of TPC. The Company intends to vigorously defend all
such claims for additional compensation. Each of the individual plaintiffs cited
in the lawsuits described above is no longer employed by the Company.
The Company and certain of its affiliates (Market Hub Partners, L.P.,
Market Hub Partners, Inc., Market Hub Partners Storage, L.L.C. and NiSource
Inc.) filed a counterclaim on March 24, 2000 against Messrs. Clark, Lorio,
Gatewood, Allemandou and Cook in the 157th Judicial District Court of Harris
County, Texas. The counterclaim alleges fraud, breach of fiduciary duty and duty
of loyalty against Messrs. Clark and Hooker, and alleges civil conspiracy
against Messrs. Clark, Lorio, Gatewood, Cook, Allemandou and Hooker.
Item 2. Changes in Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
This Report contains certain forward-looking statements regarding the
intent, belief and current expectations of the Company's management. Although
the Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to be correct. Generally, these statements relate to business plans or
strategies, projected or anticipated benefits or other consequences of such
plans or strategies, or projections involving anticipated revenues, expenses,
earnings, levels of capital expenditures or other aspects of operating results.
As further discussed in the Company's annual report on Form 10-K for the year
ended December 31, 1999, the operations of the Company are subject to a number
of uncertainties, risks and other influences, many of which are outside the
control of the Company and any one of which, or a combination of which, could
materially affect the results of the Company's operations and whether the
forward-looking statements made by the Company ultimately prove to be accurate.
-11-
<PAGE>
Item 6. Index to Exhibits
27.1 Financial Data Schedule
-12-
<PAGE>
SIGNATURE
In accordance with the requirements of the Securities Exchange Act of 1934,
as amended, the Company has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MARKET HUB PARTNERS STORAGE, L.P.
By: MARKET HUB PARTNERS STORAGE, LLC.,
its general partner
Date: MAY 11, 2000 By: /S/ ROBERT S. MCCLAIN
Robert S. McClain
Vice President and Chief
Financial Officer
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 11,480
<SECURITIES> 0
<RECEIVABLES> 13,942
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 25,515
<PP&E> 195,297
<DEPRECIATION> 23,974
<TOTAL-ASSETS> 201,273
<CURRENT-LIABILITIES> 1,755
<BONDS> 115,000
0
0
<COMMON> 0
<OTHER-SE> 84,518
<TOTAL-LIABILITY-AND-EQUITY> 201,273
<SALES> 0
<TOTAL-REVENUES> 8,239
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,440
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,196
<INCOME-PRETAX> 2,603
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,603
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,603
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
