<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: September 30, 1999 Commission File No. 1-6963
ORIOLE HOMES CORP.
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C>
Florida 59-1228702
- ------------------------------------------------------------ ---------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1690 S. Congress Ave., Suite 200 Delray Beach, Fl. 33445
- -------------------------------------------------------------- ----------------------------------------------------------
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (561) 274-2000
- -------------------------------------------------------------------------------
Former name, former address and former fiscal year,
if changed since last report.
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, 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 issuers classes of
common stock, as of the close of the period covered by this report.
<TABLE>
<CAPTION>
<S> <C>
Class Outstanding at November 4, 1999
- ------------------------------------------------------------ ----------------------------------------------------------
Common Stock, Class A, par value $.10 1,864,149
Common Stock, Class B, par value $.10 2,761,375
</TABLE>
<PAGE> 2
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
(Unaudited) (Audited)
----------- ---------
<S> <C> <C>
Cash and cash equivalents $ 13,764,145 $ 10,557,772
------------ ------------
Receivables
Mortgage notes 262,885 953,284
Inventories
Land 52,791,521 59,059,535
Homes completed or under construction 31,471,125 42,763,798
Model houses and condominiums 4,134,168 4,360,514
------------ ------------
88,396,814 106,183,847
Less estimated costs of completion
included in inventories 7,315,165 9,080,857
------------ ------------
81,081,649 97,102,990
------------ ------------
Property and equipment, at cost
Land 156,341 517,554
Buildings 3,284,642 3,505,343
Furniture, fixtures and equipment 2,874,889 3,445,563
------------ ------------
6,315,872 7,468,460
Less accumulated depreciation 3,600,118 4,070,613
------------ ------------
2,715,754 3,397,847
------------ ------------
Property and equipment held for sale, at cost -- 11,956,165
Investments in and advances to joint ventures 2,690,423 3,288,596
Land held for investment, at cost 1,857,300 2,127,009
Other
Prepaid expenses 1,031,945 1,719,517
Unamortized debt issuance costs 730,356 1,111,696
Other assets 3,036,682 3,011,589
------------ ------------
4,798,983 5,842,802
------------ ------------
Total assets $107,171,139 $135,226,465
============ =============
</TABLE>
See notes to the consolidated financial statements
-1-
<PAGE> 3
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
(Unaudited) (Audited)
--------------- ------------
<S> <C> <C>
Liabilities
Line of credit $ 10,000 $ 10,000
Mortgage notes payable 4,061,600 15,970,385
Accounts payable and accrued liabilities 7,707,987 11,664,858
Customer deposits 4,625,057 5,095,182
Senior notes 43,728,537 55,507,312
------------ ------------
Total liabilities 60,133,181 88,247,737
Shareholders' equity
Class A common stock, $.10 par value
Authorized - 10,000,000 shares,
issued and outstanding -
1,864,149 in 1999 and in 1998 186,415 186,415
Class B common stock, $.10 par value
Authorized - 10,000,000 shares,
issued and outstanding -
2,761,375 in 1999 and in 1998 276,138 276,138
Additional paid-in capital 19,267,327 19,267,327
Retained earnings 27,308,078 27,248,848
------------ ------------
Total shareholders' equity 47,037,958 46,978,728
------------ ------------
Total liabilities and shareholders' equity $107,171,139 $135,226,465
============ ============
</TABLE>
See notes to the consolidated financial statements
-2-
<PAGE> 4
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------------------- ------------------------------------
1999 1998 1999 1998
----------------- ------------------ ----------------- ------------------
<S> <C> <C> <C> <C>
Revenues
Sales of homes $ 59,682,424 $ 53,414,898 $ 15,484,339 $ 14,917,563
Sales of land -- 8,500 -- 8,500
Other operating revenues 1,954,465 2,950,750 57,780 954,846
Interest, rentals and other income 2,307,039 2,267,475 715,634 613,124
Gain on sale of property and
equipment held for sale, net 3,745,618 -- -- --
Gain (loss) on sale of land held for
investment and other assets, net 1,742,782 1,224,940 (85,971) 434,359
------------ ------------ ------------ -------------
69,432,328 59,866,563 16,171,782 16,928,392
------------ ------------ ------------ -------------
Costs and Expenses
Cost of homes sold 53,852,726 45,992,350 13,861,633 12,745,421
Costs of land sold -- 2,097 -- 2,097
Inventory valuation adjustment 2,480,695 -- -- --
Costs relating to other
operating revenues 1,790,182 2,405,195 132,557 782,688
Selling, general and
administrative expenses 10,921,530 11,256,876 3,220,430 3,438,892
Interest costs incurred 5,391,830 6,717,194 1,613,008 2,154,916
Interest capitalized (deduct) (5,063,865) (5,653,830) (1,526,634) (1,824,640)
------------ ------------ ------------ -------------
69,373,098 60,719,882 17,300,994 17,299,374
------------ ------------ ------------ -------------
Income (loss) before provision for
(benefit from) income taxes 59,230 (853,319) (1,129,212) (370,982)
Provision for (benefit from) income taxes -- -- -- --
------------ ------------ ------------ -------------
Net income (loss) $ 59,230 $ (853,319) $ (1,129,212) $ (370,982)
============ ============ ============ ============
Net income (loss) per Class A and B
common share available for common
stockholders - Basic $ .01 $ (.18) $ (.25) $ (.08)
============ ============ ============ ============
Weighted average number of common
stock outstanding - Basic 4,625,524 4,625,524 4,625,524 4,625,524
============ ============ ============ ============
Net income (loss) per Class A and B
common share available for common
stockholders - Diluted $ .01 $ (.18) $ (.25) $ (.08)
============ ============ ============ ============
Weighted average number of common
stock outstanding - Diluted 4,626,023 4,625,524 4,625,524 4,625,524
============ ============ ============ ============
</TABLE>
See notes to consolidated financial statements
-3-
<PAGE> 5
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------------------
1999 1998
---------------- ---------------
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ 59,230 $ (853,319)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities
Depreciation 726,689 928,766
Amortization 645,565 699,537
Gain on sale of property and land held for investment, net (5,488,400) (1,224,940)
(Increase) decrease in operating assets
Receivables 690,399 767,285
Inventories 14,385,011 (1,386,912)
Other assets 662,479 (111,376)
Increase (decrease) in operating liabilities
Accounts payable and accrued liabilities (3,956,871) (1,684,412)
Customer deposits (470,125) 851,748
------------ ------------
Total adjustments 7,194,747 (1,160,304)
------------ ------------
Net cash provided by (used in) operating activities 7,253,977 (2,013,623)
------------ ------------
Cash flows from investing activities
Return on investment in joint ventures 598,173 614,687
Capital expenditures (531,881) (584,441)
Proceeds from the sale of property and equipment 19,837,889 2,267,924
------------ ------------
Net cash provided by investing activities 19,904,181 2,298,170
------------ ------------
Cash flows (used in) financing activities
Payment of mortgage notes (12,908,785) (162,079)
Proceeds of mortgage notes 1,000,000 --
Repurchase of senior notes (12,043,000) (10,772,000)
------------ ------------
Net cash (used in) financing activities (23,951,785) (10,934,079)
------------ ------------
Net increase in cash and cash equivalents 3,206,373 (10,649,532)
Cash and cash equivalents at beginning of period 10,557,772 19,830,523
------------ ------------
Cash and cash equivalents at end of period $ 13,764,145 $ 9,180,991
============ ============
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest (net of amount capitalized) $ 2,281,873 $ 3,311,614
Income taxes $ -- $ 2,627
</TABLE>
See notes to consolidated financial statements
-4-
<PAGE> 6
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated balance sheet as of September 30, 1999 and the related
statements of operations and cash flows for the three months and nine
months ended September 30, 1999 and 1998 of Oriole Homes Corp. (together
with its consolidated subsidiaries, the "Company") have been prepared by
the Company without audit. In the opinion of management of the Company,
all adjustments (consisting of normal recurring accruals) necessary for
a fair presentation of the unaudited interim periods have been reflected
herein.
Certain footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these consolidated financial
statements be read in conjunction with the financial statements and
notes thereto included in the Company's December 31, 1998 annual report
on Form 10K.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those
estimates.
Certain reclassifications have been made to conform to the current year
presentation.
2. The results of operations for the three months and the nine months ended
September 30, 1999 are not necessarily indicative of the results for the
entire year.
3. Inventory valuation adjustment
Statement of Financial Accounting Standards ("SFAS") No. 121 requires
that long-lived assets held and used by the Company be reviewed for
impairment whenever events or changes indicate that the net book value
of the asset may not be recoverable. An impairment loss is recognized if
the sum of the undiscounted expected future cash flows from the use of
the assets is less than the net book value of the assets. The Company
periodically reviews the carrying value of its assets and, if such
reviews indicate the potential for lack of recovery of the net book
value, adjusts the assets accordingly.
In this regard, the Company recorded in the second quarter of 1999 a
non-cash inventory valuation adjustment totaling $2,480,695 or $.54 per
common share, reducing certain land inventory to its estimated fair
value less cost to sell. The inventory adjustment pertained to
approximately 84 unsold housing units located in two developments.
4. Backlog of contracts for sales of homes:
<TABLE>
<CAPTION>
September 30, 1999 December 31, 1998
------------------------------------ --------------------------------
Units Amounts Units Amounts
--------------- ---------------- ------------ ---------------
<S> <C> <C> <C>
Single-family 112 $ 19,315,716 $ 22,256,303
129
Multi-family 66 9,450,275 83 11,297,006
-------------- -------------- ---------- --------------
Total 178 $ 28,765,991 212 $ 33,553,309
============== ============== ========== ==============
</TABLE>
-5-
<PAGE> 7
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Senior notes
On January 13, 1993, the Company issued 12 1/2% senior notes ("Senior
Notes"), due January 15, 2003. The Senior Notes have a face value of
$70,000,000 and were issued at a discount of $1,930,600. The Senior
Notes are senior unsecured obligations of the Company subject to
redemption at the Company's option on or after January 15, 1998 at 105%
of the principal amount and thereafter at prices declining annually to
100% of the principal amount on or after January 15, 2001.
Under the terms of the indenture ("Indenture"), the Company must make
Senior Notes sinking fund payments of $17,500,000 by January 15, 2001
and January 15, 2002. The Indenture also contains provisions restricting
the amount and type of indebtedness the Company may incur, the purchase
by the Company of its stock and the payment of cash dividends. At
September 30, 1999, the payment of cash dividends is prohibited and will
be restricted until the Company posts cumulative net income in excess of
$62,100,000.
During the nine months ended September 30, 1999, the Company repurchased
$12,043,000 of Senior Notes to be used as part of the sinking fund and
has accumulated $25,751,000 toward the $17,500,000 payments due January
15, 2001 and 2002.
6. Line of credit
The Company may borrow up to $10,000,000 at an interest rate of prime
plus 1.5% under a revolving loan agreement (line of credit) with a bank,
secured by a mortgage on certain real property. At September 30, 1999,
$9,990,000 was available under this line of credit. The loan agreement
expires July 1, 2000.
The line of credit can be used to finance ongoing development and
construction of residential real estate and short-term capital needs and
only requires monthly interest payments. The loan agreement contains
typical restrictions and covenants, the most restrictive of which are:
a. the Company shall maintain, at all times through the life of
the loan, a consolidated tangible net worth of not less than
$42,000,000, and;
b. the Company's ability to incur additional debt is restricted.
7. Income taxes
At September 30, 1999, the Company has no deferred tax benefit related
to its net operating losses as the Company's ability to realize these
benefits is not "more likely than not" as defined by SFAS Statement No.
109 "Accounting for Income Taxes".
-6-
<PAGE> 8
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. Gain on sale of property and equipment held for sale
On June 30, 1999, the Company sold a 480 unit rental apartment complex
for a gain of $3.75 million. A portion of the gross proceeds of $19.2
million was used to reduce the balance of related long-term debt by
$12.2 million.
9. Segment information
The Company has the following two reportable segments: home building and
rental operations. The homebuilding segment develops and sells
residential properties and planned communities. The rental operations
segment consists of 529 units in two separate properties until June 30,
1999 and one rental operation consisting of 49 units thereafter.
Selected segment information is set forth below (in thousands):
<TABLE>
<CAPTION>
Nine Months Ending Three Months Ending
September 30, September 30,
---------------------------- -------------------------------
1999 1998 1999 1998
$ $ $ $
----------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Revenues
Home Building 63,293 56,571 16,005 15,862
Rental Operations 1,954 2,951 58 955
Other 4,185 345 108 112
------ ------ ------ ------
Total 69,432 59,867 16,171 16,929
====== ====== ====== ======
Segment net income (loss)
Home Building (4,074) (1,498) (1,113) (572)
Rental Operations 164 546 (74) 173
Other 3,969 99 58 58
------ ------ ------ ------
Total
59 ( 853) (1,129) (371)
====== ====== ====== ======
</TABLE>
10. Commitments and contingencies
The Company is involved, from time to time, in litigation arising in the
ordinary course of business, none of which is expected to have a
material adverse effect on the Company's consolidated financial position
or results of operations.
The Company is also subject to the normal obligations associated with
entering into contracts for the purchase, development and sale of real
estate in the routine conduct of its business.
-7-
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1998
The Company's revenues from home sales increased $0.6 million (3.8%)
to $15.5 million during the third quarter of 1999 as compared to the comparable
quarter of 1998 primarily as a result of an increase in the number of homes
delivered. Oriole delivered 99 homes in the 1999 third quarter compared to 91
in the same period in 1998. The average selling price of homes delivered
decreased from $163,900 to $156,400. The number of contracts signed at 99 and
the aggregate dollar value of those contracts at $15.9 million increased in the
1999 third quarter from 80 and $12.8 million, respectively, from the same
period in 1998.
Other non-homebuilding revenues decreased $0.8 million during the
third quarter of 1999 as compared to the same period in 1998 primarily due to a
reduction in rental revenue as a result of the sale of a 480 unit rental
apartment complex June 30, 1999.
Cost of home sales increased to $13.9 million (8.8%) in the third
quarter of 1999 from $12.7 million in the third quarter of 1998 primarily as a
result of an increase in the number of home delivered. As a percentage of home
sales, cost of sales increased to 89.5% from 85.4% in the third quarter of 1999
primarily due to the decrease in average selling price previously mentioned.
Selling, general and administrative expenses decreased as a percentage
of revenues to 19.9% from 20.3% for the same period in 1998 due to the increase
in revenues related to home deliveries, as well as a $0.2 million decrease in
these expenses during the third quarter of 1999 as compared to the same period
of 1998 primarily due to lower personnel costs and marketing expenses.
The Company incurred a net loss for the quarter ended September 30,
1999 of $1.1 million or $0.25 per share compared to a net loss of $0.4 million
or $0.08 per share during the same period in 1998. Earnings before interest,
taxes, depreciation and amortization (EBITDA) decreased $1.0 million to $0.7
million in the third quarter of 1999 as compared to the same period in 1998.
The increase in net loss and the decline in EBITDA during the
three-month period ended September 30, 1999 primarily resulted from (i) a
decrease in revenues during the period from rental properties sold since the
prior period and the absence of a gain on sale of land held for investment
compared to the gain of $0.4 million during the comparable period of 1998 and
(ii) an increase in the cost of homes sold. These factors were offset in part
by a reduction in costs relating to operation of the rental complex.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO NINE MONTHS ENDED
SEPTEMBER 30, 1998
The Company's revenues from home sales increased $6.3 million (11.7%)
to $59.7 million during the nine month period of 1999 as compared to 1998 as a
result of the number of homes delivered. Oriole delivered 388 homes in the
nine-month period compared to 324 in the same period in 1998. The average
selling price of homes delivered decreased from $164,900 to $153,800. The
number of contracts signed at 354 and the aggregate dollar value of those
contracts at $54.9 million decreased in the 1999 nine-month period from 388 and
$60.9 million, respectively, from the same period in 1998.
Non-homebuilding revenues increased to $9.7 million in the nine-month
period of 1999 from $6.4 million primarily due to the sale of certain
properties which had been held for investment, partly offset by a reduction in
rental revenue as a result of the sale of a 480 unit rental apartment complex
on June 30, 1999.
Cost of home sales increased to $53.9 million (17.1%) in 1999 from
$46.0 million in 1998 primarily as a result in the increase in the number of
homes delivered. As a percentage of home sales, cost of sales increased to
90.2% from 86.1% in the nine month of 1998. This increase was primarily the
result of the decrease in the average selling price previously mentioned.
-8-
<PAGE> 10
Selling, general and administrative expenses remained at approximately
the same level in the nine-month period of 1999 when compared to the same
period in 1998. These expenses decreased as a percentage of revenues to 15.7%
from 18.8% for the same period in 1998 primarily due to the increase in
revenues related to home deliveries and the sales of property and equipment.
The Company's net income for the nine-month period of 1999 was $0.6
million, or $0.01 per share, as compared to a net loss of $0.9 million, or
$0.18 per share in 1998. Net income during the 1999 period was decreased by a
non-cash pre-tax charge of $2.5 million, or $0.54 per share to write-down the
value of certain inventory to its fair market value less cost to sell and net
income was increased by $4.8 million due to the sales of properties and
equipment. In addition, the decrease in net income for the nine-month period
ending September 30, 1999 compared to the same period of 1998 resulted in part
from a decrease in revenues from rental properties sold since the prior period
and an increase in the cost of homes sold, partly offset by lower costs
relating to operation of the rental complex.
EBITDA, inclusive of the 1999 non-cash inventory valuation
adjustments, increased $3.8 million to $9.4 million in the nine-month period
ended September 30, 1999 from $5.6 million in 1998 primarily due to the
increase in the gain on sales of properties and equipment during this period.
EBITDA was also affected by the factors influencing net income discussed above.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash requirements vary from period to period depending
upon changes in inventory, land acquisition and development requirements,
construction in progress and, to a lesser extent, the Company's current net
income. The Company obtains funds for its cash requirements from operations,
the sale of investment property and borrowings. In connection with land
acquisitions and development, the Company may borrow money secured by land and
improvements.
During the nine-month period of 1999, the Company used a portion of
available cash provided by both the sales of investment properties and
operations to purchase $12.0 million of Senior Notes and reduce other long-term
debt by $12.2 million. At September 30, 1999, the Company had approximately
$13.8 million in cash and cash equivalents and the availability of
substantially all of it's $10.0 million revolving line of credit. The Company
believes that these resources are sufficient to provide for its cash
requirements through September 30, 2000.
FORWARD LOOKING STATEMENTS
Certain statements made in this document, including certain statements
made in Management's Discussion and Analysis, contain "forward looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
regarding the expectations of management with respect to revenues,
profitability, marketplace conditions, adequacy of funds from operations and
regulatory conditions applicable to the Company, among other things.
Management cautions that these statements are qualified by their terms
and/or important factors, many of which are outside the control of the Company,
that could cause actual results and events to differ materially from the
statements made herein, including, but not limited to the following: changes in
consumer preferences, increases in interest rates, a reduction in labor
availability, increases in the cost of labor and materials, changes in the
regulatory environment particularly as relates to zoning and land use,
competitive pricing pressures and the general state of the economy, both
nationally and in the Company's market.
YEAR 2000
The Company has assessed, formulated and implemented a plan to resolve
its information technology ("IT") and non-IT system year 2000 issues. The
Company has replaced its software systems and applications in there entirety as
of September 30, 1999. The Company has tested the new software systems and
applications and believes that its IT system is materially year 2000 compliant.
The Company does not consider any other IT or any non-IT systems of the Company
-9-
<PAGE> 11
to be critical to Company operations and if non-capable for year 2000, the only
effect would be inconvenience. The cost of acquiring a new software and
applications system that is year 2000 compliant was not incrementally higher
than the cost that the Company would otherwise have paid to replace its systems
and applications in the ordinary course. The Company does not anticipate that
testing or any other measure relating to implementing its plan for year 2000
compliance has or will result in costs that would have a material impact on
future earnings.
The Company has and is consulting with its subcontractors and
suppliers regarding their year 2000 readiness and has been advised that they
will be year 2000 compliant in all material respects. In any event, the Company
believes that it would not be difficult to find alternative subcontractors and
suppliers in the event that one of its existing subcontractors and suppliers
are unable to satisfactorily perform as the result of failure to be year 2000
compliant.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits and Reports on Form 8K
(a) Exhibits
Exhibit 27-Financial Data Schedule
(b) There were no reports on Form 8-K filed for the three months ended
September 30, 1999.
-10-
<PAGE> 12
SIGNATURES
Pursuant to the requirements of Section 13, 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.
ORIOLE HOMES CORP.
-------------------
(Registrant)
Date: November 4, 1999 /s/ R.D. Levy
- --------------------------- -----------------------------------
R.D. Levy,
Chairman of the Board,
Chief Executive Officer,
Director
Date: November 4, 1999 /s/ J. Pivinski
- --------------------------- -----------------------------------
J. Pivinski, Vice President
- Finance, Treasurer,
Chief Financial Officer
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 13,764,145
<SECURITIES> 0
<RECEIVABLES> 262,885
<ALLOWANCES> 0
<INVENTORY> 81,081,649
<CURRENT-ASSETS> 0
<PP&E> 6,315,872
<DEPRECIATION> 3,600,118
<TOTAL-ASSETS> 107,171,139
<CURRENT-LIABILITIES> 0
<BONDS> 47,790,137
0
0
<COMMON> 462,553
<OTHER-SE> 47,037,958
<TOTAL-LIABILITY-AND-EQUITY> 107,171,139
<SALES> 59,662,424
<TOTAL-REVENUES> 69,432,328
<CGS> 53,852,726
<TOTAL-COSTS> 58,123,603
<OTHER-EXPENSES> 10,921,530
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 327,965
<INCOME-PRETAX> 59,230
<INCOME-TAX> 0
<INCOME-CONTINUING> 59,230
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 59,230
<EPS-BASIC> .01
<EPS-DILUTED> .01
</TABLE>
