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<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------
For Quarter Ended March 31, 1999
Commission File no. 2-64309
GOLF HOST RESORTS, INC.
-----------------------
(Exact name of registrant as specified in its charter)
Colorado 84-0631130
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
36750 US 19 N., Palm Harbor, Florida 34684
- ----------------------------------------------------
(Address of principal executive offices) (Zip Code)
(970) 259-2000
- ----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to Section 13 or 15 (d) of the Securities Exchange Act of 1934 during
the preceding twelve months, and (2) has been subject to the filing requirements
for the past 90 days. - Yes X No
--- ---
Issuer has no common stock subject to this report.
Page 1 of 17
<PAGE> 2
GOLF HOST RESORTS, INC. AND SUBSIDIARY
(A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
ASSETS
(SUBSTANTIALLY ALL PLEDGED)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1999 1998
------------ ------------
(unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash $ 72,241 $ 1,396,404
Restricted cash 4,251,154 705,297
Accounts receivable, net 11,225,950 7,545,177
Notes receivable 1,349,823 1,349,823
Inventories and supplies 1,560,226 2,057,450
Prepaid expenses and other assets 1,392,498 1,061,668
------------ ------------
19,851,892 14,115,819
Assets held for sale 10,228,592 12,684,302
------------ ------------
Total current assets 30,080,484 26,800,121
INTANGIBLES, net 28,106,717 28,547,188
PROPERTY AND EQUIPMENT, at cost, less
accumulated depreciation and amortization 41,616,882 41,585,829
OTHER ASSETS 230,280 1,874,723
------------ ------------
$100,034,363 $ 98,807,861
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements
Page 2
<PAGE> 3
GOLF HOST RESORTS, INC. AND SUBSIDIARY
(A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
LIABILITIES AND SHAREHOLDER'S (DEFICIT)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1999 1998
------------- -------------
(unaudited)
<S> <C> <C>
CURRENT LIABILITIES:
Account receivable line of credit $ 59 $ 3,832,443
Accounts payable 4,176,809 3,110,889
Accrued expenses 6,673,504 5,241,267
Deposits and prepaid fees 3,160,220 3,657,913
Intercompany payables 624,096 459,520
------------- -------------
Total current liabilities 14,634,688 16,302,032
NOTES PAYABLE 83,631,787 83,416,053
OTHER LONG-TERM LIABILITIES 4,601,307 4,353,543
DEFERRED INCOME TAXES 1,770,467 1,770,467
------------- -------------
Total liabilities 104,638,249 105,842,095
------------- -------------
SHAREHOLDER'S (DEFICIT)
Common stock, $1 par, 5,000 shares
authorized, issued, and outstanding 5,000 5,000
5.6% cumulative preferred
stock, $1 par, 4,577,000
shares authorized, issued, and outstanding 4,577,000 4,577,000
Paid-in capital (13,557,000) (13,557,000)
Retained earnings 4,371,114 1,940,766
------------- -------------
Total shareholder's (deficit) (4,603,886) (7,034,234)
------------- -------------
Total liabilities and shareholder's
(deficit) $ 100,034,363 $ 98,807,861
============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements
Page 3
<PAGE> 4
GOLF HOST RESORTS, INC. AND SUBSIDIARY
(A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
STATEMENTS OF INCOME
FOR THE QUARTERS ENDED MARCH 31, 1999 AND 1998
<TABLE>
<CAPTION>
Quarters Ended March 31,
-----------------------------
1999 1998
----------- -----------
<S> <C> <C>
REVENUES:
Resort facilities $ 9,146,497 $ 7,819,476
Food and beverage 5,142,353 5,005,803
Golf 6,144,632 6,148,105
Other 2,254,204 2,004,526
Real estate activities -- --
----------- -----------
22,687,686 20,977,910
----------- -----------
COST AND OPERATION EXPENSES:
Resort facilities 5,433,259 5,316,594
Food and beverage 2,956,953 3,230,373
Golf 2,084,388 1,978,194
Other 4,813,090 3,895,340
General and administrative 3,341,497 1,116,676
Real estate activities -- --
----------- -----------
18,629,187 15,537,177
GAIN ON ASSETS HELD FOR SALE 821,864 --
----------- -----------
OPERATING INCOME 4,880,363 5,440,733
INTEREST, NET 2,385,938 2,240,317
----------- -----------
INCOME BEFORE INCOME TAX 2,494,425 3,200,416
PARENT INCOME TAX CHARGE -- 1,200,157
----------- -----------
INCOME BEFORE DIVIDEND
REQUIREMENTS ON PREFERRED STOCK 2,494,425 2,000,259
-----------
DIVIDEND REQUIREMENTS ON
PREFERRED STOCK 64,077 64,078
----------- -----------
NET INCOME AVAILABLE
TO COMMON SHAREHOLDERS $ 2,430,348 $ 1,936,181
=========== ===========
EARNINGS PER COMMON SHARE $ 486.07 $ 387.24
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
Page 4
<PAGE> 5
GOLF HOST RESORTS, INC AND SUBSIDIARY
(A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S (DEFICIT) EQUITY
FOR THE FIFTEEN MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
$1 Par Value 5.6% Cumulative
Common Stock Preferred Stock Retained Total
-------------------------- -------------------------- Paid-In (Deficit) Shareholder's
Shares Amount Shares Amount Capital Earnings (Deficit) Equity
------------ ------------ ------------ ------------ ------------ ------------ ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1997 5000 $ 5,000 4,577,000 $ 4,577,000 $(13,557,000) $ (5,625,768) $(14,600,768)
Net income available to
common shareholder -- -- -- -- -- 7,566,534 7,566,534
------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance, December 31, 1998 5000 5000 4,577,000 4,577,000 (13,557,000) 1,940,766 (7,034,234)
Net income available to
common shareholder -- -- -- -- -- 2,430,348 2,430,348
------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance, March 31, 1999 5000 $ 5,000 4,577,000 $ 4,577,000 $(13,557,000) $ 4,371,114 $ (4,603,886)
============ ============ ============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 5
<PAGE> 6
GOLF HOST RESORTS, INC. AND SUBSIDIARY
(A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
STATEMENTS OF CASH FLOWS
FOR THE QUARTERS ENDED MARCH 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income before dividend
requirements on preferred stock $ 2,494,425 $ 2,000,259
Noncash items included in income:
Depreciation and amortization 1,091,471 837,264
Write-off of startup costs 1,644,443 --
Increase in deferred tax -- 993,129
Changes in operation working capital (4,959,277) (2,833,567)
----------- -----------
Cash provided by operations 271,062 997,085
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
(Decreases) increases in other assets -- 125,485
Purchases of property and equipment (682,051) (1,350,353)
Net recovery of cost of property and
equipment sold or retired -- (18,435)
(Increase) decrease in assets held for sale 2,455,710 (403,527)
----------- -----------
Cash (used in) investing 1,773,659 (1,646,830)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Decreases in notes payable (87,682) (355,987)
Additional borrowings 303,416 1,007,132
Repayment of line of credit (3,832,384) --
Increases in other long-term liabilities 247,766 --
----------- -----------
Cash provided by (used for) financing (3,368,884) 651,145
----------- -----------
NET INCREASE (DECREASE) IN CASH (1,324,163) 1,400
CASH,BEGINNING OF QUARTER 1,396,404 56,090
----------- -----------
CASH, END OF QUARTER $ 72,241 $ 57,490
=========== ===========
NONCASH FINANCING AND INVESTING
ACTIVITIES:
The Company satisfied its preferred
stock dividend liability to GHI
through the intercompany account $ 64,077 $ 64,078
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 6
<PAGE> 7
GOLF HOST RESORTS, INC. AND SUBSIDIARY
(A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
(1) ORGANIZATION, BUSINESS, LIQUIDITY AND ACCOUNTING POLICIES
During the quarter, there was no significant change from the 10-K filing on
December 31, 1998
Financial Statement Presentation
Certain reclassifications have been made to the March, 1998 financial
statements to conform to the December 1998 presentation.
(2) LONG-TERM OBLIGATIONS
Long-term obligations consist of the following:
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1999 1998
----------- ------------
<S> <C> <C>
Participating mortgage note at varying pay
rates maturing in 2027 $69,975,000 $69,975,000
$9,000,000 participation mortgage
note credit facility 9,000,000 8,696,584
Mortgage note at 6.34%,
maturing in 2002 4,564,095 4,645,264
Capital lease at 9.51% 112,668 119,181
----------- -----------
83,651,763 83,436,029
Less current maturities 19,976 19,976
----------- -----------
$83,631,787 $83,416,053
=========== ===========
</TABLE>
Page 7
<PAGE> 8
GOLF HOST RESORTS, INC. AND SUBSIDIARY
(A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
For purposes of discussing comparative results of operations for 1999 and 1998,
the results of operations of Tamarron, which are included in loss on assets
held for sale in 1999 and in assets held for sale in 1998, are also utilized.
Guest occupancy for the quarter, measured in room nights, declined 1.6% from the
level of the prior year. On a divisional basis, Innisbrook's occupancy fell 4.4%
while Tamarron experienced an increase in occupancy of 20.7%. The modest decline
in Innisbrook's room nights occurred primarily in the group segment. The largest
increase in Tamarron's occupancy occurred in the individual, or social segment,
although the group segment occupancy also improved slightly.
Revenues from resort operations on a per occupied room basis increased 10.7%,
from $413.75 to $458.33. The improved guest spending is primarily attributable
to Innisbrook, which enjoyed a 8.2% increase in gross operating revenue despite
fewer room nights. While Tamarron's gross operating revenue rose 22.0%, its
revenue per room night rose only 1.1%. Innisbrook's average daily room rate rose
24.5% while Tamarron's increased 4.1% while meals served at Innisbrook declined
1.9%, revenue per meal served improved 4.8%. Tamarron's meals served rose 6.4%
while its revenue per meal served increased 16.7%. The improved revenues per
meal served at both resorts reflects the benefits of re-themed restaurants which
were more attractive to guests. Innisbrook golf revenues approximated the prior
year, and revenue per player rose 6.5.% while rounds played declined 6.2%.
Tamarron's golf course is not open during the first quarter. On a divisional
basis, Innisbrook and Tamarron's revenue per occupied room for the first quarter
of 1999 and 1998 were $494.86 and $224.72 as compared to $437.49 and $222.18,
respectively. As a result of the improved occupancy and guest spending, total
resort operations revenues rose $2.0 million, or 9.0%. Real estate activities at
Tamarron generated one lot sale during both the 1999 and 1998 quarter, with two
Pine Ridge homesites remaining unsold. Both of those homesites will close during
the 1999 second quarter. Approximately 35 acres of undeveloped land at
Innisbrook were sold during the first quarter of 1999. All of the real estate
sales activity for 1998 is included in assets held for sale, and the 1999
activity is included in gain on assets held for sale in the statement of
operations.
As required by SOP 98-8, during the 1999 first quarter the Company wrote off
approximately $1,644,000 of other assets comprised of capitalized start up costs
relative to the change in the management at Innisbrook and Tamarron. This
write-off is included in general and administrative expense in the statement of
operations. Exclusive of this adjustment, costs and operating expense declined
to 79.8% of total resort operations revenues as compared of 80.6% in 1998.
Relative to total resort operations revenues, costs and operating expense
declined to 79.8% as compared to 80.6% in 1998. At Innisbrook, gross operating
income grew 7.4% as relative departmental operating expense levels rose 8.8%
over the prior year while revenues increased at a 8.2% rate. At the same time,
Innisbrook's fixed charges and other expenses increased 5.4% over the prior
year, primarily due to increased rental pool distribution expense. While
Tamarron's gross operating revenue increased as noted above, its cost and
operating expense approximated the prior year. Tamarron's fixed charges and
other expenses also approximated the prior year level.
Interest expense rose 6.5.%, primarily due a slightly higher mortgage interest
rate effective January 1, 1999. The Company changed its tax status to a
qualified subchapter S subsidiary effective February 3, 1998.
FINANCIAL CONDITION AND LIQUIDITY
The company's working capital position (exclusive of Assets Held for Sale) was
$950,000, as compared to a deficit of $5,217,000 at December 31, 1998. The
Company typically experiences seasonal fluctuations in its net working capital
position without normally impairing its ability to pay trade creditors in a
timely manner and satisfy its financial obligations in an orderly fashion.
Based on existing cash levels and the additional cash sources discussed above,
the Company assesses its liquidity as satisfactory.
Page 8
<PAGE> 9
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Registrant is not currently involved in material legal proceedings
other than ordinary routine litigation incidental to its business.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information
Pursuant to an agreement with the SEC staff, included in this 10-Q
filing are unaudited financial statements of the Innisbrook Rental Pool
Lease Operation and the Tamarron Rental Pool Lease Operation for the
quarter and three months ended March 31, 1999 and 1998.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K
None
Page 9
<PAGE> 10
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.
GOLF HOST RESORTS, INC.
Date: May 14, 1999 By: /s/ Merrick Kleeman
----------------------------- --------------------------------
Merrick Kleeman
President
Date: May 14, 1999 By: /s/ R. L. Akin
----------------------------- --------------------------------
Richard L. Akin
Vice President and Treasurer
Page 10
<PAGE> 11
RENTAL POOL LEASE OPERATIONS
The following unaudited financial statements of the Innisbrook Rental Pool Lease
Operation and the Tamarron Rental Pool Lease Operation (the Rental Pools) are
for the quarters ended March 31, 1999 and 1998.
The operations of the Rental Pools are tied closely to that of Golf Host
Resorts, Inc. (the Company), and provide for distribution of a percentage of the
Company's room revenues, as defined in the Rental Pool Master Lease Agreements,
to participating condominium owners (Participants).
The operations of the Rental Pools are more fully discussed in Form 10-K, for
the fiscal year ended December 31, 1998 (file No. 2-64309).
Page 11
<PAGE> 12
INNISBROOK RENTAL POOL LEASE OPERATION
BALANCE SHEETS
MARCH 31, 1999 AND 1998
DISTRIBUTION FUND
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
ASSETS
RECEIVABLE FROM GOLF HOST RESORTS, INC
FOR DISTRIBUTION - FULLY SECURED $ 3,409,662 $ 3,081,390
INTEREST RECEIVABLE FROM MAINTENANCE 25,319 20,976
----------- -----------
ESCROW FUND $ 3,434,981 $ 3,102,366
=========== ===========
LIABILITIES AND PARTICIPANTS' FUND BALANCES
DUE TO PARTICIPANTS FOR DISTRIBUTION 2,920,327 2,583,088
DUE TO MAINTENANCE ESCROW FUND 514,654 519,278
PARTICIPANTS' FUND BALANCES -- --
----------- -----------
$ 3,434,981 $ 3,102,366
=========== ===========
MAINTENANCE ESCROW FUND
ASSETS
CASH AND CASH EQUIVALENTS $ 2,134,365 $ 1,786,060
RECEIVABLES FROM DISTRIBUTION FUND 514,654 519,278
INVENTORY 80,850 --
INTEREST RECEIVABLE 34,068 36,785
----------- -----------
$ 2,763,937 $ 2,342,123
=========== ===========
LIABILITIES AND PARTICIPANTS' FUND BALANCES
ACCOUNTS PAYABLE $ 2,006 $ 60,674
INTEREST PAYABLE TO DISTRIBUTION FUND 25,319 20,976
CARPET CARE RESERVE (5,532) 29,007
PARTICIPANTS' FUND BALANCES 2,742,144 2,231,466
----------- -----------
$ 2,763,937 $ 2,342,123
=========== ===========
</TABLE>
These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of management, include all adjustments which
are necessary for a fair presentation.
Page 12
<PAGE> 13
INNISBROOK RENTAL POOL LEASE OPERATION
STATEMENTS OF OPERATIONS FOR THE QUARTERS ENDING
MARCH 31, 1999 AND 1998
DISTRIBUTION FUND
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
GROSS REVENUES $ 8,709,634 $ 7,744,819
----------- -----------
DEDUCTIONS:
Agents' commissions 438,440 250,789
Credit Card Fees 63,171 82,301
Audit fees 3,250 3,249
----------- -----------
504,861 336,339
----------- -----------
ADJUSTED GROSS REVENUES 8,204,773 7,408,480
MANAGEMENT FEE (4,089,402) (3,689,868)
----------- -----------
4,115,371 3,718,612
ADJUSTMENTS TO GROSS INCOME
DISTRIBUTION:
Management Fee (453,946) (398,722)
Marketing Fee (247,607) (217,484)
Miscellaneous pooled expense (45,737) (25,343)
Corporate complimentary occupancy fees 8,317 7,009
Westin Associate room fees 12,831 --
Occupancy fees (552,659) (583,307)
Advisory Committee expenses (6,416) (9,525)
----------- -----------
NET INCOME DISTRIBUTION 2,830,154 2,491,240
ADJUSTMENTS TO NET INCOME DISTRIBUTION:
Occupancy fees 552,659 583,307
Hospitality suite fees 189 --
Greens fees 4,046 5,523
Additional participation credit 960 1,320
----------- -----------
AMOUNT AVAILABLE FOR DISTRIBUTION
TO PARTICIPANTS $ 3,388,008 $ 3,081,390
=========== ===========
Average daily distribution $ 48.57 $ 42.76
Average room rate $ 189.97 $ 161.52
Occupied room nights 45,847 47,951
Available room nights 69,756 72,061
Occupancy percentage 65.7% 66.5%
Average number of available units 775 801
</TABLE>
These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of management, include all adjustments which
are necessary for a fair presentation.
Page 13
<PAGE> 14
INNISBROOK RENTAL POOL LEASE OPERATION
STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES
FOR THE QUARTERS ENDED MARCH 31, 1999 AND 1998
DISTRIBUTION FUND
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
BALANCE, beginning of period $ -- $ --
ADDITIONS:
Amount available for distribution
before life-safety reimbursement 3,388,008 3,081,390
Interest received or receivable from
Maintenance Escrow Fund 25,319 20,976
REDUCTIONS:
Amounts withheld for Maintenance Escrow Fund (514,654) (519,278)
Amounts accrued or paid to participants (2,898,673) (2,583,088)
----------- -----------
BALANCE, end of period $ -- $ --
=========== ===========
MAINTENANCE ESCROW FUND
BALANCE, beginning of period $ 2,505,110 $ 1,901,616
ADDITIONS:
Amounts withheld from occupancy fees 493,000 519,278
Interest earned 25,319 20,976
Charges to participants to establish
or restore escrow balances 65,525 83,803
REDUCTIONS:
Maintenance charges (118,344) (194,214)
Carpet care reserve deposit (11,054) (11,666)
Interest accrued or paid to Distribution Fund (25,319) (20,976)
Refunds to participants as prescribed by
the Master Lease Agreement (192,094) (67,351)
----------- -----------
BALANCE, end of period $ 2,742,143 $ 2,231,466
=========== ===========
</TABLE>
These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of management, include all adjustments which
are necessary for a fair presentation.
Page 14
<PAGE> 15
TAMARRON RENTAL POOL LEASE OPERATION
BALANCE SHEETS
MARCH 31, 1999 AND 1998
DISTRIBUTION FUND
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
ASSETS
CASH $ 1,000 $ 1,000
RECEIVABLE FROM GOLF HOST RESORTS, INC
FOR DISTRIBUTION 251,795 196,299
INTEREST RECEIVABLE FROM MAINTENANCE
ESCROW FUND -- 402
--------- ---------
$ 252,795 $ 197,701
========= =========
LIABILITIES AND PARTICIPANTS' FUND BALANCES
DUE TO PARTICIPANTS FOR DISTRIBUTION $ 170,962 $ 148,299
DUE TO MAINTENANCE ESCROW FUND 81,833 49,402
PARTICIPANTS' FUND BALANCES -- --
--------- ---------
$ 252,795 $ 197,701
========= =========
MAINTENANCE ESCROW FUND
ASSETS
CASH AND CASH EQUIVALENTS $ 60,224 $ 62,030
DUE FROM DISTRIBUTION FUND 81,833 49,402
INTEREST RECEIVABLE -- --
INVENTORY:
Linen 63,695 51,905
Materials and supplies (9,039) 16,483
DEPOSITS -- --
--------- ---------
$ 196,713 $ 179,820
========= =========
LIABILITIES AND PARTICIPANTS' FUND BALANCES
ACCOUNTS PAYABLE $ 3,099 $ 7,000
INTEREST PAYABLE TO DISTRIBUTION FUND -- 402
PARTICIPANTS' FUND BALANCES 193,614 172,418
--------- ---------
$ 196,713 $ 179,820
========= =========
</TABLE>
These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of managements, include all adjustments which
are necessary for a fair presentation.
Page 15
<PAGE> 16
TAMARRON RENTAL POOL LEASE OPERATION
STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED MARCH 31, 1999 AND 1998
DISTRIBUTION FUND
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
GROSS REVENUES $ 592,897 $ 486,608
--------- ---------
DEDUCTIONS:
Agents' commissions 36,325 49,672
Sales and marketing expenses 44,467 36,496
Audit fees 3,255 2,601
--------- ---------
84,047 88,769
--------- ---------
ADJUSTED GROSS REVENUES 508,850 397,839
MANAGEMENT FEE (254,425) (198,919)
--------- ---------
GROSS INCOME DISTRIBUTION 254,425 198,920
ADJUSTMENTS TO GROSS INCOME
DISTRIBUTION:
Corporate complimentary occupancy fees 653 307
Occupancy fees (73,444) (63,563)
Designated items (44,109) (16,619)
Advisory Committee expenses (3,282) (2,927)
--------- ---------
POOLED INCOME 134,243 116,118
ADJUSTMENTS TO POOLED INCOME:
Occupancy fees 73,444 63,563
--------- ---------
NET INCOME DISTRIBUTION $ 207,687 $ 179,681
========= =========
Average daily distribution $ 8.43 $ 7.00
Average room rate $ 79.30 $ 78.24
Room nights 7,477 6,219
Occupancy percentage 30.3% 24.2%
Average number of available units 274 285
Number of units in Rental Pool at end of period 286 295
</TABLE>
These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of management, include all adjustments which
are necessary for a fair presentation.
Page 16
<PAGE> 17
TAMARRON RENTAL POOL LEASE OPERATION
STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES
FOR THE QUARTERS ENDED MARCH 31, 1999 AND 1998
DISTRIBUTION FUND
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
BALANCE, beginning of period $ -- $ --
ADDITIONS:
Amounts available for distribution 207,687 179,681
Interest received or receivable from
Maintenance Escrow Fund -- 402
REDUCTIONS:
Amounts withheld for Maintenance Escrow Fund (36,725) (31,784)
Amounts accrued or paid to participants (170,962) (148,299)
--------- ---------
BALANCE, end of period $ -- $ --
========= =========
MAINTENANCE ESCROW FUND
BALANCE, beginning of period $ 174,111 $ 165,522
ADDITIONS:
Amounts withheld from occupancy fees 36,725 31,784
Interest earned $ -- $ 402
Reimbursement of designated items 44,109 16,619
Charges to participants to establish
or restore escrow balances 12,828 105,272
REDUCTIONS:
Maintenance and inventory charges $ (18,408) $ (33,076)
Refurbishing charges (2,974) (91,254)
Interest accrued or paid to
Distribution Fund -- (402)
Designated items (44,109) (16,619)
Refunds to participants as prescribed
by Master Lease Agreement (8,668) (5,830)
--------- ---------
BALANCE, end of period $ 193,614 $ 172,418
========= =========
</TABLE>
These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of management, include all adjustments which
are necessary for a fair presentation.
Page 17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF GOLF HOST RESORTS, INC. FOR THE THREE MONTHS ENDED MARCH
31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 72,241
<SECURITIES> 4,251,154
<RECEIVABLES> 11,332,050
<ALLOWANCES> 106,000
<INVENTORY> 1,560,226
<CURRENT-ASSETS> 30,080,484
<PP&E> 65,657,679
<DEPRECIATION> 24,040,797
<TOTAL-ASSETS> 100,034,363
<CURRENT-LIABILITIES> 14,634,688
<BONDS> 83,631,787
0
4,577,000
<COMMON> 5,000
<OTHER-SE> 9,185,886
<TOTAL-LIABILITY-AND-EQUITY> 100,034,363
<SALES> 6,210,483
<TOTAL-REVENUES> 22,687,686
<CGS> 1,745,007
<TOTAL-COSTS> 18,629,187
<OTHER-EXPENSES> (821,864)
<LOSS-PROVISION> 35,000
<INTEREST-EXPENSE> 2,385,938
<INCOME-PRETAX> 2,494,425
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,494,425
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,430,348
<EPS-PRIMARY> 486.07
<EPS-DILUTED> 486.07
</TABLE>
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