<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark FORM 10-QSB
One) -----------
[X]
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 1997
[_]
TRANSITION REPORT UNDER SECTION 13 OR 15 (D)
OF THE EXCHANGE ACT
For the period of transition from to
--------------- ---------------
Commission File No. 0-1322
KNICKERBOCKER VILLAGE, INC.
---------------------------
(Exact name of registrant as specified in its Charter)
NEW YORK 13-0924285
- ------------------------------- -----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10 Monroe Street, New York, N.Y. 10002
- ----------------------------------------- -----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 227-0955
Indicate by checkmark 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
------ ------
The number of shares outstanding of each of the issuer's classes of common
stock, as of the close of the period covered by this report is 147,464, $2.15
par value.
Total number of sequentially numbered pages - 15
No exhibits filed.
<PAGE>
FORM 10-QSB
KNICKERBOCKER VILLAGE, INC.
BALANCE SHEET
AS OF JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Assets
- ------
<S> <C>
Current Assets:
Cash $ 54,537
Accounts receivable (less allowance for doubtful accounts of $270,000) 236,261
Interest and other receivables 1,701
Prepaid expenses and other current assets (Note 13) 1,240,306
Deferred tax asset, net (Note 8) 38,000
-----------
Total Current Assets 1,570,805
-----------
Special Funds And Deposits:
Funds for replacements, painting and decorating (Notes 4 and 11) 172,208
Tenants' security deposits - contra 647,043
-----------
Total Special Funds and Deposits 819,251
-----------
Fixed Assets, At Cost: (Notes 2, 3 and 5)
Land 3,273,281
Buildings and building equipment 15,289,448
-----------
18,562,729
Less: Accumulated depreciation 11,150,309
-----------
Net Fixed Assets 7,412,420
-----------
Other Assets:
Deferred tax asset, net (Note 8) 112,000
Other Assets 134,641
-----------
Total Other Assets 246,641
-----------
Total Assets $10,049,117
===========
</TABLE>
In the opinion of management, the accompanying financial statements of
Knickerbocker Village, Inc. as at June 30, 1997 and for the related periods then
ended include all adjustments necessary in order to make the financial
statements not misleading.
2
<PAGE>
FORM 10-QSB
KNICKERBOCKER VILLAGE, INC.
BALANCE SHEET
AS OF JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Liabilities And Stockholders' Equity
------------------------------------
Current Liabilities:
<S> <C>
Accounts payable and accrued expenses (Note 11) $ 1,406,962
Unearned rental income 88,409
Dividends payable (Note 7) 19,023
Current portion of long-term debt (Note 5) 78,355
Current portion of capital lease obligation (Note 6) 3,555
-----------
Total Current Liabilities 1,596,304
Tenants' Security Deposits - Contra 647,043
Other Liabilities (Note 11) 201,650
Long-Term Debt, less current portion (Note 5) 6,196,967
Captial Lease Obligation, less current portion (Note 6) 6,412
-----------
Total Liabilities 8,648,376
-----------
Commitments and Contingencies (Note 11)
Stockholders' Equity:
Limited dividend capital stock,
par value $2.15 per share,
Authorized - 348,837 shares;
issued and outstanding - 147,464 (Note 7) 317,048
Retained earnings 1,083,693
-----------
Total Stockholders' Equity 1,400,741
-----------
Total Liabilities And Stockholders' Equity $10,049,117
===========
</TABLE>
3
<PAGE>
FORM 10-QSB
KNICKERBOCKER VILLAGE, INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Revenues:
Rentals (Note 12) $4,919,746 $4,714,689
Other income 3,054 8,196
---------- ----------
4,922,800 4,722,885
---------- ----------
Expenses:
Wages and related costs 1,151,210 1,094,983
Real estate taxes 415,687 396,723
Utilities 792,372 926,905
Maintenance, repairs and decorating 509,089 546,032
Depreciation and amortization 278,881 214,684
Mortgage and other interest 284,257 316,150
Management and administrative fee (Note 9) 442,954 433,970
Miscellaneous operating and general expenses 760,821 734,632
---------- ----------
4,635,271 4,664,079
---------- ----------
Income before income taxes 287,529 58,806
Provision for income taxes (Note 8) 147,000 37,000
---------- ----------
Net income 140,529 21,806
---------- ----------
Retained earnings at beginning of period
As previously reported 943,164 891,959
Prior period adjustment (Note 2) 0 93,000
---------- ----------
As restated 943,164 984,959
---------- ----------
Retained earnings at end of period $1,083,693 $1,006,765
========== ==========
Earnings per share $ 0.95 $ 0.15
========== ==========
</TABLE>
4
<PAGE>
FORM 10-QSB
KNICKERBOCKER VILLAGE, INC.
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
------------ ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 140,529 $ 21,806
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization 278,881 214,684
Provision for bad debts 8,043 43,000
Deferred income taxes (24,000) 0
Changes in assets (increase) decrease:
Rents receivable (36,305) (47,322)
Interest and other receivables 12,664 (4,705)
Prepaid expenses and other current assets 370,637 255,211
Other assets (124,375) 0
Changes in liabilities increase (decrease):
Accounts payable and accrued expenses (584,984) (348,979)
Unearned rental income 5,436 6,881
Other liabilities (10,850) 0
----------- ---------
Net cash provided by operating activities 35,676 140,576
----------- ---------
Cash Flows From Investing Activities:
Interest earned on reserve fund investments (1,019) (4,632)
Capital expenditures (192,024) (191,943)
Contributions of cash from operations to replacement fund (324,441) (50,000)
Reimbursement of expenditures paid by housing company
from replacement fund 269,227 248,060
Contributions from sale of investments 0 (135,044)
Proceeds of investments from replacement funds 0 134,613
----------- ---------
Net cash provided by (used in) investing activities (248,257) 1,054
----------- ---------
Cash flows from financing activities:
Proceeds on refinanced mortgage 6,300,000 0
Payments on pre-existing mortgage debt (6,008,130) (75,424)
Payments on long-term debt (24,678) 0
Payments on capital lease obligations (489) 0
Payments of bank overdraft 0 (18,826)
----------- ---------
Net cash provided by (used in) financing activities 266,703 (94,250)
----------- ---------
Net increase in cash 54,122 47,380
Cash at beginning of period 415 0
----------- ---------
Cash at end of period $ 54,537 $ 47,380
=========== =========
Supplemental Disclosures Of Cash Flow Information:
Cash paid during the period for:
Interest $ 284,387 $ 316,779
Income taxes 36,000 66,322
</TABLE>
Supplemental Schedule Of Noncash Investing and
Financing Activities:
A captial lease obligation of $10,456 was incurred when the Company entered
into a lease for new equipment
5
<PAGE>
KNICKERBOCKER VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
NOTE 1 - CORPORATE ORGANIZATION
----------------------
Knickerbocker Village, Inc. (the Company), is a public, limited
dividend housing company formed pursuant to the Housing Laws of the
State of New York, on September 5, 1933. The Company is regulated by
the Division of Housing and Community Renewal (DHCR), a New York State
regulatory agency. The Company is located in lower Manhattan and
operates approximately 1,600 rental units ranging in size from studios
through three bedroom apartments.
NOTE 2 - PRIOR PERIOD ADJUSTMENT
-----------------------
The balance of retained earnings at January 1, 1996, has been restated
from amounts previously reported to reflect an increase of $93,000
($0.63 per share), resulting from a change in the Company's policy
from expensing appliances as purchased to capitalizing the appliances
as fixed assets. The change was made to conform with generally
accepted accounting principles.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
REVENUE RECOGNITION
-------------------
The Company recognizes revenue in the accounting period that
corresponds to the month for which rental income is billed. Rents
received but not recognized as revenue as of June 30, are recorded as
unearned rental income.
ALLOWANCE FOR DOUBTFUL ACCOUNTS
-------------------------------
Bad debts are provided for on the allowance method based on historical
experience and management's evaluation of outstanding rents
receivable.
FIXED ASSETS
------------
Fixed assets consists primarily of building improvements and equipment
and are recorded at cost. Depreciation is provided for financial
statement purposes on the straight-line method, over the estimated
useful lives of the fixed asset, which range from 5 to 30 years. For
federal income tax purposes, depreciation is provided for on the
straight-line and accelerated methods.
Expenditures for maintenance and repairs are charged to operations as
incurred. Upon sale or retirement of property, the cost and
accumulated depreciation are removed from the respective accounts and
any gain or loss is reflected in operations for the year. Depreciation
expense for the six months ended June 30, 1997 and 1996 was
approximately $252,000 and $203,000, respectively.
6
<PAGE>
KNICKERBOCKER VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
INCOME TAXES
------------
Deferred tax assets and liabilities reflect the tax consequences on future
years of differences between the tax bases of assets and liabilities, and
their financial reporting amounts, using enacted tax rates in effect for
the year in which the differences are expected to reverse.
CONCENTRATION OF CREDIT RISK
----------------------------
The Company places its cash and investments for its Replacement Fund (See
Note 4) with a high quality credit institution. At times such investments
may be in excess of FDIC insured limits.
INVESTMENTS
-----------
All investments in the replacement, painting and decorating fund (See Note
4) are available for sale and are carried at fair values.
ESTIMATES
---------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
RECLASSIFICATIONS
-----------------
Certain prior year balances have been reclassified to conform with current
year classifications.
FAIR VALUE OF FINANCIAL INSTRUMENTS
-----------------------------------
The following methods and assumptions were used to estimate the fair value
of each class of financial instruments:
1. Cash and cash equivalents - The carrying amounts approximate fair value
because
of the short maturity of these instruments.
2. Investments - Fair value approximates quoted market value.
3. Receivables - The carrying amount approximates fair value because of the
short
maturity of these instruments.
4. Debt - The carrying amounts approximate fair value based on borrowing
rates currently available to the Company for bank loans with similar
terms.
7
<PAGE>
KNICKERBOCKER VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
IMPAIRMENT OF LONG-LIVED ASSETS
-------------------------------
In accordance with SFAS No. 121, "Accounting For the Impairment of
Long-Lived Assets and For Long-Lived Assets To Be Disposed Of", the
Company reviews it long-lived assets, including property and
equipment, and intangible assets for impairment whenever events or
changes in circumstances indicate that the carrying amount of the
assets may not be fully recoverable. To determine recoverability of
its long-lived assets, the Company evaluates the probability that
future undiscounted net cash flows will be less than the carrying
amount of the assets. Impairment costs, if any, are measured by
comparing the carrying amount of the related assets to their fair
value.
NOTE 4 - REPLACEMENT, PAINTING AND DECORATING FUNDS
------------------------------------------
Maintenance of these funds is requested by the Commissioner of
Housing and Community Renewal of the State of New York. These funds
were comprised of the following at June 30, 1997:
Cash $172,208
Investments: Treasury Bills - Available for sale 0
--------
$172,208
========
NOTE 5 - LONG-TERM DEBT
--------------
On January 30, 1997, the Company entered into an extension and
modification agreement with The Greater New York Savings Bank for the
principal amount of $6,300,000 ("Modification Agreement"). The
mortgage is payable in monthly installments of $50,729, inclusive of
interest at the rate of 8 1/2% per annum, commencing on March 1, 1997
and due on February 1, 2007. On the maturity date, the Company may
pay the remaining principal balance, or extend the term of the
mortgage for an additional five (5) years. The mortgage is
collaterallized by land, buildings and boilers. The aggregate
maturities for long-term debt for the five years after June 30, 1997
are $78,355, $85,000, $93,000, $101,000 and $110,000, respectively.
NOTE 6 - CAPITAL LEASE OBLIGATIONS
-------------------------
The Company leases certain equipment under an agreement which is
classified as a capital lease. The equipment lease has a purchase
option at the end of the lease term. Leased captial assets included in
buildings and building equipment at June 30, 1997 is as follows:
Building Equipment $20,356
Accumulated Depreciation 1,939
-------
$18,417
=======
8
<PAGE>
KNICKERBOCKER VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
Future minimum payments under noncancellable captial leases are as follows
at June 30, 1997:
Year Ending June 30
-------------------
1998 $ 4,817
1999 4,817
2000 4,015
-------
Total minimum lease payments 13,649
Amounts representing interest 3,682
-------
Present value of net minimum payments 9,967
Current portion 3,555
-------
$ 6,412
=======
NOTE 7 - DIVIDENDS PAYABLE AND CAPITAL STOCK
-----------------------------------
The holders of the Company's capital stock cannot at any time receive,
in repayment of their investment, any sums in excess of the par value
of the stock together with cumulative dividends at the rate of 6% of
par value per annum (without interest). Any surplus in excess of such
amounts upon dissolution reverts to the public authorities.
Cumulative dividends unpaid to June 30, 1997 amounted to $532,643 or
approximately $3.61 per share. Dividends amounting to $19,023 were
declared during 1979, but were not paid as of June 30, 1997. Such
dividends were approved by the DHCR. No dividends were declared or
paid in 1997 or 1996.
NOTE 8 - INCOME TAXES
------------
The provision for income taxes for the six months ended June 30,
1997 and 1996 consist of the following:
1997 1996
-------- -------
Current Taxes
--------------
Federal $133,000 $22,000
New York City 38,000 15,000
-------- -------
Total $171,000 $37,000
-------- -------
Deferred Taxes
--------------
Federal $(21,000) $ 0
New York City (3,000) 0
-------- -------
Total $(24,000) $ 0
-------- -------
Provision For Income Taxes $147,000 $37,000
======== =======
9
<PAGE>
KNICKERBOCKER VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
The provision for income taxes differs from amounts computed at statutory
rates as follows:
1997 1996
-------- -------
Federal income taxes
at statutory rate $ 98,000 $22,000
New York City corporation
tax, net of federal benefit 17,000 15,000
Other, net 32,000 0
-------- -------
Total $147,000 $37,000
======== =======
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. At June
30, 1997, the net deferred tax assets of $150,000 was included in the
Company's balance sheet as follows:
Deferred tax asset, net
- Current $ 38,000
Deferred tax asset, net
- Long term 112,000
---------
Deferred tax asset, net $ 150,000
=========
Significant components of the Company's net deferred tax asset at June 30, 1997
are as follows:
Tax effects of:
Accounts receivable $ 116,000
Unearned rental income 38,000
Buildings and building equipment 447,000
---------
Gross deferred tax asset 601,000
Valuation allowance (451,000)
---------
Net deferred tax asset $ 150,000
=========
Management believes that a valuation allowance is appropriate given the
current estimates of future taxable income, as well as consideration of
available tax planning strategies. If the Company is unable to generate
sufficient taxable income in the future through operating results,
increases in the valuation allowance will be required through a charge to
expense. However, if the Company achieves profitability to utilize a
greater portion of the deferred tax asset, the valuation allowance will be
reduced through a credit to income. The net change in the valuation
allowance for the six months ended June 30, 1997 was an increase of
$71,000.
10
<PAGE>
KNICKERBOCKER VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
NOTE 9 - MANAGEMENT FEE
--------------
The management fee, set by DHCR, was paid to Cherry Green Property
Corp., (Cherry Green), the owner of approximately 95% of the
outstanding shares of the Company. Such fee is reviewed and may be
adjusted annually, effective July 1 of each year, by the DHCR.
On March 8, 1996 and October 24, 1996 the DHCR approved increases in
the management fee of 2.3% effective July 1, 1995 and 2.75% effective
July 1, 1996, respectively.
NOTE 10- PENSION PLAN
------------
Certain employees of the Company are covered under a union sponsored,
multi-employer defined benefit pension plan. This plan is not
administered by the Company and contributions are determined by the
union. The Company's contributions for this plan were approximately
$36,000 and $35,000 for the six months ended June 30, 1997 and 1996,
respectively.
NOTE 11- COMMITMENTS AND CONTINGENCIES
-----------------------------
As of June 30, 1997, the Company was in arrears on its contributions
as requested by DHCR to its' special fund for replacements, painting
and decorating in the amount of approximately $219,000 (Note 4). The
Company, in accordance with the Modification Agreement with it's bank
dated January 30, 1997 (Note 5), has made a commitment to complete
asbestos abatement work and lead paint remediation work of
approximately $425,000 in 1997 and 1998. Remaining costs of
approximately $414,000 have been accrued in the financial statements
as of June 30, 1997. The costs of any additional asbestos abatement or
lead paint remediation, if necessary, in excess of the amounts accrued
at June 30, 1997, can not be determined at this time.
NOTE 12- RENTAL INCOME
-------------
During April 1996, the Company received a two step rent increase,
which was approved by the DHCR. The first increase of approximately
5.5% was effective June 1, 1996 and the second increase of
approximately 5.3% was effective June 1, 1997.
11
<PAGE>
KNICKERBOCKER VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
NOTE 13- PREPAID EXPENSES AND OTHER CURRENT ASSETS
-----------------------------------------
Prepaid expenses and other current assets in the accompanying balance
sheet at June 30, 1997 are as follows:
Escrow Account $ 456,978
Prepaid:
Insurance 299,327
Water and Sewer 0
Real Estate Taxes 401,132
Supplies 76,178
Interest 4,403
Expenses - Other 2,288
----------
TOTAL $1,240,306
==========
12
<PAGE>
FORM 10-QSB
KNICKERBOCKER VILLAGE, INC
MANAGEMENTS DISCUSSION AND ANALYSIS OR
PLAN OF OPERATION
JUNE 30, 1997
(UNAUDITED)
Liquidity - As of June 30, 1997 the Registrant had a working capital deficit of
approximately $25,000 and was in arrears on its contributions to its special
fund for replacements, painting and decorating of approximately $219,000, as
discussed further in Note 11 to the financial statements.
On January 30, 1997, the Registrant entered into an extension and modification
agreement with The Greater New York Savings Bank for the principal amount of
$6,300,000 (see Note 5 to the financial statements). As a result of this
mortgage extension and modification agreement, the Registrant's annual debt
service will be reduced by approximately $155,000 per annum, effective as of
March 1, 1997.
During April 1996, the Registrant received a two step rent increase which was
approved by the Division of Housing and Community Renewal. The first increase
of approximately 5.5% was effective June 1, 1996. The second increase of
approximately 5.3% was effective June 1, 1997.
Capital resources - The Registrant has set aside funds for capital improvements
and repairs amounting to approximately $172,000 as of June 30, 1997.
Results of operations - During the six months ended June 30, 1997, as compared
to the six months ended June 30, 1996, total revenues increased by approximately
$200,000 or approximately 4.2%, due primarily to the rent increase referred to
above, partially offset by decreases in commercial rental income, interest
income and other charges to tenants.
Operating expenses decreased by approximately $29,000 or approximately 0.6%
during the six months ended June 30, 1997 as compared to the six months ended
June 30, 1996. Decreases in utilities, maintenance, repairs and decorating and
mortgage and other interest were offset by increases in wages and related costs,
real estate taxes, depreciation and amortization and miscellaneous operating and
general expenses. Utilities decreased by approximately $135,000 or
approximately 14.5%, primarily due to reductions in fuel oil prices, electrical
consumption and the City of New York's frontage charges. Maintenance, repairs
and decorating decreased by approximately $37,000 or approximately 6.8%,
primarily due to higher plumbing and heating expenses incurred in 1996 offset by
increases in painting expenses during 1997. Mortgage and other interest
decreased by approximately $32,000 or approximately 10.0%, primarily due to the
refinancing of the Company's mortgage debt (See Note 5 to the financial
statements). Wages and related costs increased by approximately $56,000 or
approximately 5.1%, primarily due to increases in union wage rates, union
pension rates and related payroll taxes. Real estate taxes increased by
approximately $19,000 or approximately 4.8%, primarily due to an increase in the
property's assessed valuation for the tax year ended June 30, 1997.
Depreciation and amortization increased by approximately $64,000 or
approximately 29.9% primarily due to the write off of mortgage costs of
approximately $21,000 related to the Company's pre-existing mortgage debt, and
additional depreciation expense incurred on the acquisition of fixed assets.
Miscellaneous operating and general expenses increased by approximately $26,000
or approximately 3.6%, primarily due to increases in legal fees, and security
and protection offset by decreases in collection losses and insurance expense.
The provision for income taxes increased by approximately $110,000 or
approximately 297.3%, primarily due to an increase in income before income
taxes.
13
<PAGE>
PART II. OTHER INFORMATION
----------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Exhibits.
None.
(b) Reports on Form 8-K.
None.
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
KNICKERBOCKER VILLAGE, INC.:
ated: August 11, 1997 By: /s/ ROBERT GERSHON
-------------------------
ROBERT GERSHON,
Vice President and Treasurer
Dated: August 11, 1997 By: /s/ MELVIN GERSHON
------------------------
MELVIN GERSHON,
Secretary
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMAATION EXTRACTED FROM
KNICKERBOCKER VILLAGE INC.'S FORM 10-QSB FOR THE 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> 54,537
<SECURITIES> 0
<RECEIVABLES> 506,261
<ALLOWANCES> 270,000
<INVENTORY> 0
<CURRENT-ASSETS> 1,570,805
<PP&E> 7,412,420
<DEPRECIATION> 252,009
<TOTAL-ASSETS> 10,049,117
<CURRENT-LIABILITIES> 1,596,304
<BONDS> 6,196,967
0
0
<COMMON> 317,048
<OTHER-SE> 1,083,693
<TOTAL-LIABILITY-AND-EQUITY> 10,049,117
<SALES> 4,919,746
<TOTAL-REVENUES> 4,922,800
<CGS> 0
<TOTAL-COSTS> 4,635,271
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 284,257
<INCOME-PRETAX> 287,529
<INCOME-TAX> 147,000
<INCOME-CONTINUING> 140,529
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 140,529
<EPS-PRIMARY> 0.95
<EPS-DILUTED> 0
</TABLE>
