<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended June 30, 1997 Commission File Number 0-9659
------------- ------
SIGNATURE INNS, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-1426996
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
250 EAST 96TH STREET, SUITE 450, INDIANAPOLIS, IN 46240
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (317) 581-1111
Check whether the Registrant (1) has filed all reports required to be filed by
Sections 13 or 15 (d) of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such filing requirements for
the past 90 days.
YES [X] NO [ ]
2,105,203 Common Shares were outstanding as of August 4, 1997.
<PAGE> 2
SIGNATURE INNS, INC.
INDEX
<TABLE>
<CAPTION>
Part I - FINANCIAL INFORMATION Page
<S> <C>
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Operations 1
Three and six months ended June 30, 1997 and 1996
Pro Forma Consolidated Statements of Operations 2
Three and six months ended June 30, 1997 and 1996
Consolidated Balance Sheets 3
June 30, 1997 and December 31, 1996
Consolidated Statements of Shareholders' Equity 4
Six months ended June 30, 1997 and
Year ended December 31, 1996
Consolidated Statements of Cash Flows 5
Six months ended June 30, 1997 and 1996
Note to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition 7
and Results of Operations
Part II - OTHER INFORMATION 11
SIGNATURES 12
</TABLE>
<PAGE> 3
SIGNATURE INNS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Guestroom revenues $ 10,781,136 1,354,846 18,039,904 2,460,217
Other hotel revenues 431,984 62,530 792,584 121,159
Management and franchise fees 15,716 845,415 147,800 1,523,990
------------ ------------ ------------ ------------
11,228,836 2,262,791 18,980,288 4,105,366
------------ ------------ ------------ ------------
Operating costs and expenses:
Direct hotel expenses 5,923,492 714,819 10,026,602 1,419,135
Depreciation, amortization and retirements 959,733 119,619 1,678,243 243,930
Corporate expenses 652,531 624,051 1,326,930 1,240,972
------------ ------------ ------------ ------------
7,535,756 1,458,489 13,031,775 2,904,037
------------ ------------ ------------ ------------
Operating income 3,693,080 804,302 5,948,513 1,201,329
------------ ------------ ------------ ------------
Other income (deductions):
Equity in income (losses) of hotel limited partnerships 10,347 303,159 (61,676) 323,523
Interest income 143,673 51,567 211,184 104,585
Interest expense (1,514,151) (261,175) (2,711,810) (531,421)
Other partners' equity in income - (118,794) - (172,219)
------------ ------------ ------------ ------------
(1,360,131) (25,243) (2,562,302) (275,532)
------------ ------------ ------------ ------------
Income before income tax expense 2,332,949 779,059 3,386,211 925,797
Provision for income tax expense 823,000 - 1,195,000 -
------------ ------------ ------------ ------------
Net income 1,509,949 779,059 2,191,211 925,797
Preferred stock dividends 958,800 - 1,703,280 -
------------ ------------ ------------ ------------
Net income applicable to common stock $ 551,149 779,059 487,931 925,797
============ ============ ============ ============
Earnings per common share $ 0.26 0.37 0.23 0.44
============ ============ ============ ============
Weighted average common shares outstanding 2,102,651 2,104,075 2,102,763 2,103,974
============ ============ ============ ============
</TABLE>
1
<PAGE> 4
SIGNATURE INNS, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Pro Forma Pro Forma
Three Months ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Guestroom revenues $ 10,781,136 10,382,763 19,340,088 18,763,532
Other hotel revenues 431,984 476,518 879,206 921,319
Management and franchise fees 15,716 - 15,716 -
------------ ------------ ------------ ------------
11,228,836 10,859,281 20,235,010 19,684,851
------------ ------------ ------------ ------------
Operating costs and expenses:
Direct hotel expenses 5,923,492 5,669,077 11,138,973 11,246,128
Depreciation, amortization and retirements 959,733 858,380 1,821,243 1,720,868
Corporate expenses 652,531 607,222 1,326,930 1,215,293
------------ ------------ ------------ ------------
7,535,756 7,134,602 14,287,146 14,182,289
------------ ------------ ------------ ------------
Operating income 3,693,080 3,724,602 5,947,864 5,502,562
------------ ------------ ------------ ------------
Other income (deductions):
Equity in income of hotel limited partnerships 10,347 - 8,168 -
Interest income 143,673 77,302 211,184 154,603
Interest expense (1,514,151) (1,438,767) (2,943,805) (2,876,308)
------------ ------------ ------------ ------------
(1,360,131) (1,361,465) (2,724,453) (2,721,705)
------------ ------------ ------------ ------------
Income before income tax expense 2,332,949 2,363,137 3,223,411 2,780,857
Provision for income tax expense 823,000 774,460 1,137,333 911,357
------------ ------------ ------------ ------------
Net income 1,509,949 1,588,677 2,086,078 1,869,500
Preferred stock dividends 958,800 958,800 1,917,600 1,917,600
============ ============ ============ ============
Net income (loss) applicable to common stock $ 551,149 629,877 168,478 (48,100)
============ ============ ============ ============
Earnings (loss) per common share $ 0.26 0.30 0.08 (0.02)
============ ============ ============ ============
Weighted average common shares outstanding 2,102,651 2,103,872 2,102,763 2,103,974
============ ============ ============ ============
</TABLE>
2
<PAGE> 5
SIGNATURE INNS, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
June 30, December 31,
1997 1996
- ----------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 10,414,472 1,994,751
Restricted cash 661,192 284,292
Other current assets 1,345,091 646,077
------------- -------------
Total current assets 12,420,755 2,925,120
------------- -------------
Property and equipment, net 106,838,560 10,358,333
Furniture and equipment cash reserves 1,591,479 184,708
Hotel limited partnership investments 676,695 5,539,457
Deferred costs and other assets, net 553,026 1,603,461
------------- -------------
$ 122,080,515 20,611,079
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt 4,225,846 238,765
Other current liabilities 5,092,020 1,324,356
------------- -------------
Total current liabilities 9,317,866 1,563,121
Long-term debt, less current portion 63,886,571 12,078,622
Other partners' equity - 307,343
------------- -------------
Total liabilities 73,204,437 13,949,086
------------- -------------
Shareholders' equity:
Preferred stock, no par value. Authorized 5,000,000 shares 40,776,126 -
Common stock, no par value. Authorized 25,000,000 shares. 10,008,742 10,017,514
Accumulated deficit (1,908,790) (3,355,521)
------------- -------------
Total shareholders' equity 48,876,078 6,661,993
------------- -------------
$ 122,080,515 20,611,079
============= =============
</TABLE>
3
<PAGE> 6
SIGNATURE INNS, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
Common Stock Preferred Stock
---------------------------- ----------------------------- Accumulated
Shares Amount Shares Amount Deficit Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1995 2,103,872 $ 9,805,973 - $ - $(5,014,747) 4,791,226
Net income - - - - 1,659,226 1,659,226
Collection of notes receivable - 208,875 - - - 208,875
Common shares issued 541 2,666 - - - 2,666
--------- ----------- --------- ----------- ----------- ----------
Balance at December 31, 1996 2,104,413 10,017,514 - - (3,355,521) 6,661,993
Net income - - - - 2,191,211 2,191,211
Fractional shares redeemed (2,005) (16,267) - - - (16,267)
Restricted stock grant 500 3,000 - - - 3,000
Exercise of stock options 1,080 4,495 - - - 4,495
Preferred shares issued - - 2,256,000 40,776,126 - 40,776,126
Cash dividends - - - - (744,480) (744,480)
--------- ----------- --------- ----------- ----------- ----------
Balance at June 30, 1997 2,103,988 $10,008,742 2,256,000 $40,776,126 $(1,908,790) 48,876,078
========= =========== ========= =========== =========== ==========
</TABLE>
4
<PAGE> 7
SIGNATURE INNS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Six months ended June 30, 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,191,211 925,797
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation of property and equipment 1,646,092 233,391
Amortization of deferred costs 34,244 11,064
Equity in income (losses) of hotel limited partnerships,
net of distributions received of $1,568,364 and $783,761 1,630,040 460,238
Other partners' equity in income - 172,219
Other items (374,688) (234,328)
------------ ------------
Net cash provided by operating activities 5,126,899 1,568,381
------------ ------------
Cash flows from investing activities:
Purchase of hotels from affiliated entities (28,939,206) -
Acquisition and conversion costs of other operating hotels (2,139,757) -
Property and equipment additions (634,749) (130,258)
Repayments of (advances to) hotel limited partnerships, net (95,031) 80,000
Deferred acquisition costs and other assets (253,867) (265,268)
------------ ------------
Net cash used by investing activities (32,062,610) (315,526)
------------ ------------
Cash flows from financing activities:
Proceeds of long-term debt 23,170,515 -
Repayments of long-term debt (25,087,957) (2,031,764)
Net repayments on revolving line of credit (2,750,000) 300,000
Fractional common shares redeemed (16,267) -
Restricted stock grant and exercise of stock options 7,495 -
Proceeds from issuance of preferred stock 40,776,126 -
Cash dividends paid (744,480) -
Issuance of common stock - 208,875
Distributions to other partners by consolidated hotel, net - (78,325)
------------ ------------
Net cash provided (used) by financing activities 35,355,432 (1,601,214)
------------ ------------
Net change in cash and cash equivalents 8,419,721 (348,359)
Cash and cash equivalents at beginning of period 1,994,751 2,018,298
------------ ------------
Cash and cash equivalents at end of period $ 10,414,472 1,669,939
============ ============
Supplemental information:
Interest paid $ 2,632,000 536,196
Income taxes paid $ 65,000 26,000
Debt assumed to acquire property and equipment $ 60,462,000 -
</TABLE>
5
<PAGE> 8
SIGNATURE INNS, INC.
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 1997
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
Accordingly, the financial statements do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the interim period are not necessarily
indicative of the results that may be expected for the year ended December 31,
1997. For further information, refer to the financial statements included in the
Registrant's annual report on Form 10-KSB for the year ended December 31, 1996.
In January 1997, the Company completed a public offering (the "Offering") of
2,256,000 shares of cumulative convertible preferred stock at $20 per share.
Using a portion of the proceeds of the Offering, other sources of funds and the
assumption of debt, the Company acquired the 23 hotel properties previously
owned by the affiliated partnerships. The unaudited pro forma statements of
operations have been prepared assuming the completion of the Offering and the
acquisition of the 23 hotels owned by the affiliated partnerships. The pro forma
statements of operations assume that these transactions were consummated
immediately prior to the periods presented. The pro forma information is
presented for supplemental disclosure purposes and is not necessarily indicative
of what would have occurred if the Offering and acquisitions had occurred as of
that date. In addition, the pro forma statements do not purport to project the
Company's results of operations for any future period.
6
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
GENERAL
The Company is engaged in the development, ownership and operation of Signature
Inn hotels. As of June 30, 1997, the Company operated 26 hotels, of which 25 are
Signature Inn hotels all located in six Midwestern states. The Company also
renovated a purchased hotel in Springfield, Illinois which was converted to a
Signature Inn and opened June 24, 1997. All hotels operated by the Company are
100% owned with the exception of Signature Inn Carmel which is owned by an
unconsolidated partnership with the Company as the 40% general partner.
On January 24, 1997, the Company completed a public offering ("the Offering") of
2,256,000 shares of cumulative convertible preferred stock. On that same date,
using a portion of the proceeds of the Offering, other sources of funds and the
assumption of debt, the Company acquired the 23 Signature Inn hotels previously
owned by affiliated partnerships (including three hotels which were previously
consolidated in the Company's financial statements). Additionally, the Company
acquired a hotel in Louisville, Kentucky in February 1997.
Prior to the January 24, 1997 transactions, the historical consolidated
financial statements include the operations of the Company and three 50% owned
consolidated hotel affiliates. The equity method is used for the investment in
hotel limited partnership in which the Company is a partner with 50% or less
ownership and does not exercise legal, financial and operational control.
RESULTS OF OPERATIONS
The following is a discussion of the results of the Company's operations for the
three and six months ended June 30, 1997 and 1996.
THREE MONTHS ENDED JUNE 30, 1997 COMPARED WITH THREE MONTHS ENDED MARCH 31, 1996
HOTEL OPERATIONS.
HOTEL OPERATIONS. Hotel revenues of $11,213,000 for 1997 represented a
$9,796,000 increase compared to 1996. Hotel revenues from the three consolidated
hotels decreased $139,000 with the remainder of the increase attributable to the
acquisition of twenty previously unconsolidated Signature Inn hotels on January
24, 1997 (the Acquired Signature Inns) and the acquisition of the Louisville
East hotel on February 18, 1997 (the Louisville Acquisition). The decreased
revenues of the three consolidated hotels resulted from a lower occupancy
achieved during 1997, offset partially by increased average daily room rates.
Direct hotel expenses for 1997 represented a $5,209,000 increase compared to
1996. Direct hotel expenses from the three consolidated hotels decreased
$71,000, with the remainder of the increase attributable to the Acquired
Signature Inns and the Louisville Acquisition.
7
<PAGE> 10
Depreciation and amortization expense increased $840,000 for 1997 compared to
1996 due to the Acquired Signature Inns and the Louisville Acquisition.
Corporate Operations. Revenue from management and franchise fees were earned
from unconsolidated partnership owned hotels prior to the acquisition of the
Acquired Signature Inns by the Company on January 24, 1997. These fees decreased
$830,000 for 1997 compared to 1996 due to the absence of fee income earned from
the Acquired Signature Inns subsequent to the date of acquisition offset by fee
income from the one remaining affiliated limited partnership owned hotel (which
opened February 1997).
Corporate expenses for 1997 were $653,000 which represented a $28,000 increase
compared to 1996. The increase is attributable to increased employee costs and
general office related expenses incurred during the ordinary course of business.
Other Income (Expense). Equity in income of hotel limited partnerships
represents the Company's share of the unconsolidated partnerships' income or
loss prior to the purchase of the Acquired Signature Inns by the Company on
January 24, 1997. The decrease in income is due to the absence of the Company's
pro rata share of the acquired Signature Inns subsequent to January 24, 1997.
Interest income for 1997 increased compared to 1996 as a result of increased
investable cash balances maintained during 1997, offset partially by the absence
of interest earned from the Company's loan participation agreements in three
hotels during the comparable period in 1996. The increase in interest expense
for 1997 is due to additional debt assumed by the Company in connection with the
Acquired Signature Inns and the Louisville Acquisition.
SIX MONTHS ENDED JUNE 30, 1997 COMPARED WITH SIX MONTHS ENDED MARCH 31, 1997
HOTEL OPERATIONS. Hotel revenues of $18,832,000 for 1997 represented a
$16,251,000 increase compared to 1996. Hotel revenues from the three
consolidated hotels decreased $211,000 with the remainder of the increase
attributable to the acquisition of twenty previously unconsolidated Signature
Inn hotels on January 24, 1997 and the acquisition of the Louisville East hotel
on February 18, 1997. The decreased revenues of the three consolidated hotels
resulted from a lower occupancy achieved during 1997, offset partially by
increased average daily room rates.
Direct hotel expenses for 1997 represented a $8,607,000 increase compared to
1996. Direct hotel expenses from the three consolidated hotels decreased
$77,000, with the remainder of the increase attributable to the Acquired
Signature Inns and the Louisville Acquisition.
Depreciation and amortization expense increased $1,434,000 for 1997 compared to
1996 due to the Acquired Signature Inns and the Louisville Acquisition.
8
<PAGE> 11
Corporate Operations. Revenue from management and franchise fees were earned
from unconsolidated partnership owned hotels prior to the acquisition of the
Acquired Signature Inns by the Company on January 24, 1997. These fees decreased
$1,376,000 for 1997 compared to 1996 due to the absence of fee income earned
from the Acquired Signature Inns subsequent to the date of acquisition offset by
fees from the one remaining affiliated limited partnership owned hotel (which
opened February 1997).
Corporate expenses for 1997 were $1,327,000 which represented an $86,000
increase compared to 1996. The increase is attributable to increased employee
costs and general office related expenses incurred during the ordinary course of
business.
Other Income (Expense). Equity in income of hotel limited partnerships
represents the Company's share of the unconsolidated partnerships' income or
loss prior to the purchase of the Acquired Signature Inns by the Company on
January 24, 1997. The decrease in income is due to the absence of the Company's
pro rata share of the acquired Signature Inns subsequent to January 24, 1997.
Interest income for 1997 increased compared to 1996 as a result of increased
investable cash balances maintained during 1997, offset partially by the absence
of interest earned from the Company's loan participation agreements in three
hotels during the comparable period in 1996. The increase in interest expense
for 1997 is due to additional debt assumed by the Company in connection with the
Acquired Signature Inns and the Louisville Acquisition.
CAPITAL RESOURCES AND LIQUIDITY
During the first six months of 1997, the Company generated net cash provided by
operating activities of $5,127,000 compared to $1,568,000 in 1996. The change is
a result of an increase in earnings excluding non-cash items (income tax expense
and depreciation) and an increase of distributions received from hotel limited
partnerships.
During the first six months of 1997, the Company used net cash of $32,062,000 in
investing activities compared to $316,000 in 1996. The primary element of the
change is the acquisition of the Acquired Signature Inns. Also, in February
1997, the Company purchased an operating hotel in Louisville, Kentucky, with
funds from cash balances and the assumption of indebtedness. In addition, the
Springfield hotel conversion costs were paid during the first half of 1997.
During the first six months of 1997, the Company generated net cash of
$35,355,000 in financing activities compared to a use of net cash of $1,601,000
in financing activities during 1996. The change is due primarily to net proceeds
from the issuance of preferred stock of $40,776,000.
9
<PAGE> 12
The Company believes that the cash generated from operations, along with
additional borrowing capabilities and cash balances, will provide adequate
liquidity to meet its capital requirements as well as operating expenses, debt
service requirements and preferred stock dividends over the next twelve months.
The Company's bank credit facility provides for borrowings of up to $6,000,000
for new hotel construction projects and hotel acquisitions. At June 30, 1997
there were no outstanding advances on the facility. The facility is structured
to provide short-term construction and start-up financing for new projects. The
Company will replace the credit facility financings on new projects with
long-term mortgage financings.
From time to time, the Company may publish forward-looking statements relating
to such matters as anticipated financial performance, business prospects,
development activities and similar matters. The Private Securities Litigation
Reform Act of 1995 provides a safe harbor for forward-looking statements. In
order to comply with the terms of the safe harbor, the Company notes that a
variety of factors could cause the Company's actual results and experiences to
differ materially from the anticipated results or other expectations expressed
in the Company's forward-looking statements. The risks and uncertainties that
may affect the operations, performance, and results of the Company's business
include the following: (i) the risk of adverse changes in the future level of
demand by the Company's customers and prospective customers caused by regional
or real estate-specific economic downturns, and (ii) other risks detailed from
time to time in the filings with the Securities and Exchange Commission.
SEASONALITY
Demand for hotel accommodations varies seasonally in the Signature Inns hotels'
market areas. Typically, demand for hotel accommodations and correspondingly,
occupancy rates for the hotels, will be higher during the period from March
through October and lower during the period from November through February.
NEW ACCOUNTING PRONOUNCEMENT
In February 1997, the Financial Accounting Standards Board issued SFAS No. 128,
"Earnings Per Share" ("SFAS 128"). SFAS 128 provides computation, presentation,
and disclosure requirements for earnings per share. The current presentation of
primary and fully diluted earnings per share will be replaced with basic and
diluted earnings per share. The Statement is effective for financial statements
for both interim and annual periods ending after December 15, 1997, and earlier
application is not permitted. Because the Company does not have any significant
dilutive securities, management does not expect that the new basic earnings per
share will be significantly different from primary earnings per share.
INFLATION
The rate of inflation as measured by changes in the average consumer price index
has not had a material effect on the Company's financial condition or results of
operations for the periods presented.
10
<PAGE> 13
PART II - OTHER INFORMATION
- ---------------------------
Item 1. Legal Proceedings
See note below
Item 2. Changes in Securities
See note below
Item 3. Default upon Senior Securities
See note below
Item 4. Submission of matters to a Vote of Security Holders
May 20, 1997 Annual Meeting of Shareholders
Matters voted on (out of 2,102,408 eligible shares):
(i) Election of two directors for three year terms
1,518,284 for; 28,543 abstain
(ii) Approval of the proposal to amend Article V of the
Company's Amended and Restated Articles of Incorporation
1,457,812 for; 44,534 against; 44,480 abstain
(iii) Approval of independent auditors for the year ended
December 31, 1996 1,527,830 for; 6,014 against and
12,983 abstain
Item 5. Other information
See note below
Item 6. Exhibits and Reports from 8-K
See note below
NOTE: The response to each of the above items 1, 2, 3, 5 and 6 is not applicable
or is in the negative and does not require a response pursuant to the
instructions.
11
<PAGE> 14
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.
SIGNATURE INNS, INC.
Date August 4, 1997 By /s/ John D. Bontreger
---------------------- ----------------------------------------
John D. Bontreger, President and C.E.O.
Date August 4, 1997 By /s/ Mark D. Carney
---------------------- ----------------------------------------
Mark D. Carney, Vice President Finance
and C.F.O.
Date August 4, 1997 By /s/ Martin D. Brew
---------------------- ----------------------------------------
Martin D. Brew, Treasurer/Controller
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTH PERIOD ENDED JUNE
30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 10,414,472
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 12,420,755
<PP&E> 115,015,213
<DEPRECIATION> 8,176,653
<TOTAL-ASSETS> 122,080,515
<CURRENT-LIABILITIES> 9,317,866
<BONDS> 63,886,571
<COMMON> 10,008,742
0
40,776,126
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 122,080,515
<SALES> 0
<TOTAL-REVENUES> 18,980,288
<CGS> 0
<TOTAL-COSTS> 10,026,602
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,711,810
<INCOME-PRETAX> 3,386,211
<INCOME-TAX> 1,195,000
<INCOME-CONTINUING> 2,191,211
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,191,211
<EPS-PRIMARY> .23
<EPS-DILUTED> 0
</TABLE>
