FORM 10-QSB
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Qtr. Ended: September 30, 1998 File No.: 2-72849-NY
IMN FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
DELAWARE 11-2558192
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
520 BROAD HOLLOW ROAD MELVILLE NEW YORK 11746
(Address of principal executive offices)
(516) 844-9805
(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 .
Indicate the number of shares outstanding of each of the registrant's classes of
stock as of November 13, 1998:
Common stock, $.001 par value - 27,804,201 shares outstanding.
<PAGE>
IMN FINANCIAL CORP. AND SUBSIDIARIES
------------------------------------
FORM 10-QSB
-----------
INDEX
PART I - FINANCIAL INFORMATION
Item I - FINANCIAL STATEMENTS (Unaudited)
Condensed Consolidated Balance Sheets -
September 30, 1998 and September 30, 1997 3-4
Condensed Consolidated Statement of Income and Comprehensive Income
Nine Months Ended September 30, 1998 and September 30, 1997 5
Condensed Consolidated Statement of Income and Comprehensive Income
Three Months Ended September 30, 1998 and September 30, 1997 6
Condensed Consolidated Statement of Cash Flows -
Nine Months Ended September 30, 1998 and September 30, 1997 7-8
Condensed Consolidated Statement of Retained Earnings 9
Notes to Financial Statements 10-11
Item II - MANAGEMENT'S DISCUSSION AND ANALYSIS 12-14
.
PART II - OTHER INFORMATION 15
SIGNATURES 16
EXHIBIT 27 - FINANCIAL DATA SCHEDULE 17
2
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
ASSETS
------
<TABLE>
<CAPTION>
9/30/98 9/30/97
Unaudited Unaudited
--------- ---------
<S> <C> <C>
ASSETS
Cash $ 3,523,006 $ 725,620
Mortgage inventory 73,583,676 23,170,998
Points and fees receivable 4,953,683 671,113
Stock subscription receivable 0 4,894,488
Other current receivables 975,110 477,916
Investments 7,405,297 5,660,293
Prepaid expenses 5,760,721 2,142,222
Property and equipment - net 2,888,887 989,613
Notes and mortgages receivable 2,259,669 2,290,574
Intangible assets - net 6,282,070 2,155,735
Other assets 428,883 91,869
------------ ------------
TOTAL ASSETS $108,061,002 $ 43,270,441
============ ============
</TABLE>
3
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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CONDENSED CONSOLIDATED BALANCE SHEET
------------------------------------
LIABILITIES & STOCKHOLDERS' EQUITY
----------------------------------
<TABLE>
<CAPTION>
9/30/98 9/30/97
Unaudited Unaudited
--------- ---------
<S> <C> <C>
LIABILITIES
Accounts payable and accrued expenses $ 7,109,954 $ 2,405,325
Warehouse lines of credit 72,909,932 22,563,966
Borrowers escrow funds 270,371 306,930
Capital lease obligations 900,549 330,740
Notes and mortgages payable 575,368 0
Due to related party 7,481,812 2,504,488
Deferred income 1,289,397 348,259
Deferred income taxes 698,680 0
Other liabilities 246 966
------------- -------------
Total Liabilities 91,236,309 28,460,674
------------- -------------
STOCKHOLDERS' EQUITY
Preferred stock - authorized 5,000,000
shares $.001 par value per share, the number of
shares outstanding at September 30, 1998
and September 30, 1997 - 4,250 and -0-, 4 0
Common stock - authorized 45,000,000 shares,
$.001 par value per share, the number of
shares outstanding at September 30, 1998
September 30, 1997 - 24,764,201 and
23,957,917, respectively 31,858 2,396
------------- -------------
Paid-in capital 20,548,166 14,715,858
Stock subscription receivable (3,766,666) 0
Unrealized Gain on Available-for-Sale
Securities 259,341 0
Retained earnings (248,010) 91,513
------------- -------------
Total Stockholders' Equity 16,824,693 14,809,767
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 108,061,002 $ 43,270,441
============= =============
</TABLE>
4
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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CONDENSED CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE
INCOME
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
9/30/98 9/30/97
----------- -----------
<S> <C> <C>
OPERATING INCOME
Points, Fees and Premium Income $ 20,123,188 $ 6,757,052
Interest Income 2,833,895 702,909
------------ ------------
Total Operating Income 22,957,083 7,459,961
------------ ------------
OPERATING EXPENSES
General and Administrative Expenses 10,970,998 4,414,515
Interest Expense 3,796,929 693,035
Field and Direct Expenses 6,508,515 2,243,605
Depreciation 241,194 0
Amortization of Acquisition Goodwill 204,944 0
Other Amortization 77,846 0
------------ ------------
Total Operating Expenses 21,800,426 7,351,155
------------ ------------
Income from Operations 1,156,657 108,806
Income (loss) from Subsidiary (34,511) 0
------------ ------------
Income before Provision for Income Taxes 1,122,146 108,806
Provision for Income Taxes 353,368 0
------------ ------------
NET INCOME 768,778 108,806
Other Comprehensive Income
Unrealized Gain on Available-For-Sale Securities 24,847 0
------------ ------------
(Net of Income Tax of $12,800)
COMPREHENSIVE INCOME $ 793,625 $ 108,806
============ ============
Weighted Average Number of Shares 29,430,831 10,115,928
Outstanding
============ ============
Basic Earnings per share $ 0.0261 $ 0.0108
============ ============
Diluted Earnings per share $ 0.0261 $ 0.0108
============ ============
</TABLE>
5
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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CONDENSED CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE
INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
9/30/98 9/30/97
------------ ------------
<S> <C> <C>
OPERATING INCOME
Points, Fees and Premium Income $ 8,770,643 $ 4,460,278
Interest Income 1,240,745 552,771
----------- -----------
Total Operating Income 10,011,388 5,013,049
----------- -----------
OPERATING EXPENSES
General and Administrative Expenses 4,380,936 3,399,907
Field and Direct Expenses 3,166,230 1,191,304
Interest Expense 1,586,844 521,555
Depreciation 105,290 0
Amortization of Acquisition Goodwill 120,938 0
Other Amortization 26,599 0
----------- -----------
Total Operating Expenses 9,386,837 5,112,766
----------- -----------
Income from Operations 624,551 (99,717)
Income (loss) from Subsidiary 42,527 0
----------- -----------
Income before Provision for Income Taxes 667,078 (99,717)
Provision for Income Taxes 302,845 0
----------- -----------
NET INCOME 364,233 (99,717)
Other Comprehensive Income
Unrealized Gain on Available-For-Sale Securities
(Net of Income Tax of $3,185) 6,182 0
----------- -----------
COMPREHENSIVE INCOME $ 370,415 $ (99,717)
=========== ===========
</TABLE>
6
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
9/30/98 9/30/97
---------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 768,778 $ 108,806
Adjustments to reconcile net income to net
provided by operating activities:
Amortization 204,944 67,882
Depreciation 241,194 50,632
Loss from subsidiary 34,511
Changes in assets and liabilities (5,005,476) (1,076,102)
------------- -------------
Net cash (used in) operating activities (3,756,049) (848,782)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (543,564) (347,680)
Purchase of intangible assets (462,212) (402,433)
Mortgages originated - net (459,122,882) (124,537,793)
Mortgages sold 435,513,216 115,072,077
------------- -------------
Net cash provided by (used in) investing activities (24,615,442) (10,215,829)
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 0 1,705,512
Sale of preferred stock 2,554,970 0
Advances from related parties 2,448,362 800,585
Proceeds from warehouse line of credit 437,202,974 113,122,588
Repayments of warehouse line of credit (414,263,811) (103,962,756)
Repayment of capital lease obligations (130,349)
Repayment of notes and mortgages payable (188,829)
Collection of stock subscriptions 2,374,934 0
Collection of notes receivable 16,967 7,541
------------- -------------
Net cash provided by financing activities 30,015,218 11,673,470
------------- -------------
Net increase (decrease) in cash and equivalents 1,643,727 608,859
Cash acquisition adjustment (148,459)
Cash Balance at Beginning of Period 2,027,738 116,761
------------- -------------
Cash Balance at End of Period $ 3,523,006 $ 725,620
============= =============
</TABLE>
7
<PAGE>
IMN FINANCIAL CORP. AND SUBSIDIARIES
FORM 10 - QSB
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
9/30/98 9/30/97
----------- -----------
SUPPLEMENTAL DISCLOSURES:
<S> <C> <C>
Interest expense $3,796,929 $ 693,035
========== ==========
Income taxes $ 69,707 $ 0
========== ==========
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Decrease in Market Value of Available-for-Sale $ 95,953 $ 0
Securities
========== ==========
Assets distributed to reduce debt $4,339,089 $ 0
========== ==========
Stock issued in conjunction with acquisitions $ 300,000 $ 0
========== ==========
Notes payable issued in conjunction with acquisitions $ 354,710 $ 0
========== ==========
Assets acquired through the issuance of common stock $ 0 $5,971,042
========== ==========
Equipment acquired through capital lease obligations $ 0 $ 181,969
========== ==========
Assets and liabilities acquired in exchange for contingent $9,408,155 $ 0
========== ==========
Liability
</TABLE>
8
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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CONDENSED CONSOLIDATED STATEMENT OF RETAINED EARNINGS
(Unaudited)
RETAINED EARNINGS - JANUARY 1, 1998 $(1,016,788)
Net Income 768,778
-----------
RETAINED EARNINGS - SEPTEMBER 30, 1998 $ (248,010)
===========
9
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions and item 310 (b) of Regulations S-B.
Accordingly, they 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 nine months ended September 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 financial statements
and footnotes thereto included in the Company's 1997 annual report filed on form
10-KSB.
NOTE 2 - EARNINGS PER SHARE
Earnings per share have been computed on the basis of the total weighted
average number of shares outstanding at September 30, 1998 and 1997.
<TABLE>
<CAPTION>
SEPTEMBER 30, SEPTEMBER 30,
1998 1997
------------- -------------
<S> <C> <C>
Number of shares outstanding - Start of period 31,764,107 1,064,300
Decreases (7,000,000) 0
Increases 94 22,893,617
----------- -----------
Number of shares outstanding - End of period 24,764,201 23,957,917
=========== ===========
Weighted Average Number of Shares
Outstanding 29,430,831 10,115,928
=========== ===========
</TABLE>
NOTE 3 - PRINCIPLES OF CONSOLIDATION
The consolidated financial statements of the Company include the
accounts of IMN Financial Corp. and its wholly owned subsidiaries, Island
Mortgage Network, Inc., Citizens Mortgage Service Company, First Equities
Service Corp., First Equities Commercial Corp. and Bankers Direct Mortgage
Corp.. All significant intercompany balances and transactions have been
eliminated in consolidation.
10
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 4 - SALE AND ACQUISITIONS OF SUBSIDIARIES
The Company sold Green Shield Mortgage Corp., 1st Potomac Mortgage
Corporation and American National Mortgage Corporation (former subsidiaries)
during the first quarter of 1998. Preceding the sales, the Company removed
certain assets pertaining to the business operations, which will be continued by
the Company's subsidiary, Island Mortgage Network, Inc. These subsidiaries were
sold for book value, resulting in no gain or loss to the Company.
On September 10, 1998, the Company acquired 100% of the capital stock of
Bankers Direct Mortgage Company. The stock was acquired under an agreement which
calls for quarterly payments to the seller of one-eighth of one point on all
loans closed in the two subsequent years, provided certain conditions are met.
NOTE 5 - PREFERRED STOCK
On February 20, and March 31, 1998, respectively, the Company entered
into two Securities Purchase Agreements. Under the terms of the agreements, the
buyers would receive 8% Convertible Preferred Stock and warrants to purchase
additional shares. The gross proceeds to the Company were $3,000,000. The
agreement provided for the issuance of preferred shares and warrants. The shares
are convertible at 75% of the average closing bid prices of the Company's common
stock as quoted by Bloomberg, LP for the five-day trading period (the "Average
Price") ending on the day prior to the date of the conversion (the "Conversion
Price"). The Conversion Price may not be greater than 120% of the Average Price
on the closing date (the "Maximum Price"). The warrants expire on March 31, 2003
and are exercisable at $2.00 per share. The Company issued additional warrants
to the convertible preferred stockholders' which expire on July 15, 2003 and
exercisable at $2.00 per share.
NOTE 6 - SUBSEQUENT EVENTS
On October 27, 1998, the Company agreed to a repurchase of its Series B
Convertible Preferred Stock. Pursuant to the Agreement, the holders of such
Preferred Stock agreed to convert the 3,040 shares of Preferred Stock into
3,040,000 shares of Common Stock (on the basis of $1.00 per share) and the
Company, or its assignee agreed to purchase the 3,040,000 shares (less 750,000
shares) for approximately $3,040,000. The holders of the 750,000 shares of
Common Stock also agreed to a schedule limiting the resale of the 750,000 shares
and an increase in their warrant exercise price.
11
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial position and
operating results during the periods included in the accompanying condensed
consolidated financial statements.
RESULTS OF OPERATIONS - NINE MONTH PERIOD ENDED SEPTEMBER 30, 1998 VS.
- - ----------------------------------------------------------------------
SEPTEMBER 30, 1997
- - ------------------
Total revenues for the nine months ended September 30, increased to
$22,957,083 as compared to $7,459,961 for the same period in 1997, an increase
of 208%. The Company attributes the increase to the various acquisitions since
August 1, 1997.
Total general and administrative expenses for the nine months ended
September 30, increased to $10,970,998 as compared to $4,414,515 for the same
period in 1997, an increase of 149%. The Company attributes the increase to the
increase of sales volume mentioned above. This increase is 59% less than the
increase in sales due to ongoing acquisitions related cost reductions.
Total interest expense for the nine months ended September 30,
increased to $3,796,929 as compared to $693,035 for the same period in 1997, an
increase of 448%. The Company attributes the increase to the increase of sales
volume mentioned above.
Total field and direct expenses for the nine months ended September
30, increased to $6,508,515 as compared to $2,243,605 for the same period in
1997, an increase of 190%. The Company attributes the increase to the increase
of sales volume mentioned above. This increase is 18% less than the increase in
sales due to ongoing acquisitions related cost reductions.
Total net income for the nine months ended September 30, increased
to $768,778 as compared to $108,806 for the same period in 1997, an increase of
607%. The Company attributes the increase to the increase of sales volume
mentioned above.
RESULTS OF OPERATIONS - THREE MONTH PERIOD ENDED SEPTEMBER 30, 1998 VS.
- - -----------------------------------------------------------------------
SEPTEMBER 30, 1997
- - ------------------
Total revenues for the three months ended September 30, increased
to $10,011,388 as compared to $5,013,049 for the same period in 1997, an
increase of 100%. The Company attributes the increase to the various
acquisitions since August 1, 1997.
Total general and administrative expenses for the three months
ended September 30, increased to $4,380,936 as compared to $3,166,230 for the
same period in 1997, an increase of 38%. The Company attributes the increase to
the increase of sales volume mentioned above. This increase is 62% less than the
increase in sales due to ongoing acquisitions related cost reductions.
12
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS - THREE MONTH PERIOD ENDED SEPTEMBER 30, 1998 VS.
- - -----------------------------------------------------------------------
SEPTEMBER 30, 1997 (CONTD.)
- - ----------------------------
Total interest expense for the three months ended September 30,
increased to $1,586,844 as compared to $521,555 for the same period in 1997, an
increase of 204%. The Company attributes the increase to the increase of sales
volume mentioned above.
Total field and direct expenses for the three months ended September 30,
increased to $3,166,230 as compared to $1,191,304 for the same period in 1997,
an increase of 166%. The Company attributes the increase to the increase of
sales volume mentioned above.
Total net income (loss) for the three months ended September 30,
increased to $364,233 as compared to $(99,717) for the same period in 1997, an
increase of 465%. The Company attributes the increase to the increase of sales
volume mentioned above.
LIQUIDITY AND CAPITAL RESOURCES
- - -------------------------------
The Company believes that current operations will provide adequate cash
flow to meet current obligations. The Company has $4,953,683 in points and fees
receivable and investments of $7,405,297 as its present capital resources.
Management believes that these resources provide adequate working capital for
the Company.
YEAR 2000
- - ---------
THE COMPANY'S STATE OF READINESS
- - --------------------------------
80% of the Company's information technology systems are presently year
2000 compliant, including having been tested as to their compliance. The
remaining 20% of the systems are expected to be upgraded and tested within the
next several months, resulting in year 2000 compliance by early 1999. In
addition, the Company is regulated by the NYS Banking Department, which is
overseeing the year 2000 compliance of the systems through various
questionnaires. Thus, far, the Company is in compliance with the oversight of
the NYS Banking Department.
Year 2000 compliance of the Company's non-information technology systems
has not yet been addressed. The year 2000 compliance of these systems is
expected to be addressed and in place by mid 1999.
13
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IMN FINANCIAL CORP. AND SUBSIDIARIES
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FORM 10 - QSB
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
YEAR 2000 (CONTD.)
- - ------------------
There are currently several third parties whose year 2000 compliance is
important to the Company's continuing operation. These include banks and other
financial institutions which provide the Company's operational financing. The
Company is presently developing questionnaires to be answered by the third
parties regarding their level of year 2000 compliance. In addition, the NYS
Banking Department is overseeing the year 2000 compliance of the systems for
some of these third parties as well.
THE COSTS TO ADDRESS THE COMPANY'S YEAR 2000 ISSUES
- - ---------------------------------------------------
The company is in the process of replacing the remaining outdated
information technology systems within the next several months. This replacement
encompasses the remaining 20% of the system which will be year 2000
noncompliant. These costs are not directly associated with making the systems
year 2000 compliant, as they are incurred in connection with the routine upgrade
of the systems.
The estimated year 2000 costs in connection with the non-information
technology systems and third party compliance is not expected to exceed $15,000.
THE RISKS OF THE COMPANY'S YEAR 2000 ISSUES
- - -------------------------------------------
The most likely worst case scenario with regard to the Company's
information technology and non-information technology systems would be in
connection with several small branches which operate independently. Should there
be a problem with their systems, the operations could be carried on from the
main location in the interim. The potential lost revenue from such an event
would be immaterial in amount.
The most likely worst case scenario with regard to the third parties
would be in connection with their ability to provide timely financing. The
Company has lines of credit with several different financial institutions in
order to provide financing. In the event that one or more were to be affected by
year 2000 issues, the remaining available lines of credit should provide the
financing necessary to continue the normal day to day operations of the
business. The potential lost revenue in connection with the aforementioned
scenario should be minimal.
THE COMPANY'S CONTINGENCY PLANS
- - -------------------------------
Presently, the contingency plans that exist are discussed above in "The
risks of the Company's year 2000 issues" section. Over the next several months,
the Company will evaluate the current contingency plans to determine if any
modifications are necessary.
14
<PAGE>
IMN FINANCIAL CORP. AND SUBSIDIARIES
FORM 10 - QSB
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
The exhibits filed as part of this report are listed below.
DESCRIPTION
-----------
A) EXHIBITS
27 Financial Data Schedule
B) REPORTS
* Form 8-K dated May 5, 1997
* Form 8-K-A dated August 1,1997
* Form 8-K dated September 16, 1997
* Form 8-K dated September 10, 1998
* Form 8-K dated November 2, 1998
* Form 10QSB - For the Quarter Ended March 31, 1997
* Form 10QSB - For the Quarter Ended June 30, 1997
* Form 10QSB - For the Quarter Ended September 30, 1997
Form 10QT - For the Transition Period October 1, 1996 to
* December 31, 1996
* Form 10KSB - For the Year Ended December 31, 1997
* Form 10QSB - For the Quarter Ended March 31, 1998
* Form 10QSB - For the Quarter Ended June 30, 1998
* Incorporated by reference.
15
<PAGE>
IMN FINANCIAL CORP. AND SUBSIDIARIES
------------------------------------
FORM 10 - QSB
-------------
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.
IMN FINANCIAL CORP. AND SUBSIDIARIES.
Dated: November 13, 1998 ----------------------------
EDWARD CAPUANO - President, Principal
Executive Officer and Principal Financial
Officer
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains certain summary information extracted from the
financial statements dated September 30, 1998 and is qualified in its entirety
by reference to such financial information.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-Mos
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Sep-30-1998
<CASH> 3,523,006
<SECURITIES> 7,405,297
<RECEIVABLES> 5,928,793
<ALLOWANCES> 0
<INVENTORY> 73,583,676
<CURRENT-ASSETS> 90,440,772
<PP&E> 2,888,887
<DEPRECIATION> 0
<TOTAL-ASSETS> 108,061,002
<CURRENT-LIABILITIES> 80,290,257
<BONDS> 0
0
4
<COMMON> 31,858
<OTHER-SE> 16,792,831
<TOTAL-LIABILITY-AND-EQUITY> 108,061,002
<SALES> 20,123,188
<TOTAL-REVENUES> 22,957,083
<CGS> 0
<TOTAL-COSTS> 18,003,497
<OTHER-EXPENSES> 34,511
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,796,929
<INCOME-PRETAX> 1,122,146
<INCOME-TAX> 353,368
<INCOME-CONTINUING> 768,778
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 768,778
<EPS-PRIMARY> 0.261
<EPS-DILUTED> 0.261
</TABLE>
