<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(X) Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1996 or
( ) Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ____________ to ____________
Commission file number 0-14050
-------------------------------------------------------
THE SANDS REGENT
- --------------------------------------------------------------------------------
(exact name of registrant as specified in charter)
Nevada 88-0201135
- ------------------------------------------ ---------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
345 North Arlington Avenue, Reno, Nevada 89501
- --------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code (702) 348-2200
-----------------------------
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
--- ---
On May 14, 1996, the registrant had outstanding 4,498,722 shares of its common
stock, $.05 par value.
<PAGE> 2
THE SANDS REGENT AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements. 1 - 6
Consolidated Statements of Income 1
Consolidated Balance Sheets 2 - 3
Consolidated Statements of Cash Flows 4 - 5
Notes to Interim Consolidated Financial
Statements 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations. 7 - 10
PART II OTHER INFORMATION
Item 1. Legal Proceedings. 11
Item 2. Changes in Securities. 11
Item 3. Defaults Upon Senior Securities. 11
Item 4. Submission of Matters to a Vote of
Security Holders. 11
Item 5. Other Information. 11
Item 6. Exhibits and Reports on Form 8-K. 11
SIGNATURES 12
</TABLE>
<PAGE> 3
PART I FINANCIAL INFORMATION
Item 1. Financial Statements.
THE SANDS REGENT AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
(Dollars in thousands, THREE MONTHS NINE MONTHS
except per share amounts) ENDED MARCH 31, ENDED MARCH 31,
------------------ -------------------
1995 1996 1995 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Operating revenues:
Gaming $ 10,785 $ 11,318 $ 31,739 $ 32,648
Lodging 1,907 1,742 6,979 7,090
Food and beverage 1,913 1,993 6,075 5,923
Other 419 1,054 1,413 1,817
--------- --------- --------- ---------
15,024 16,107 46,206 47,478
Less complimentary lodging, food
and beverage included above 640 807 1,906 2,086
--------- --------- --------- ---------
14,384 15,300 44,300 45,392
--------- --------- --------- ---------
Operating costs and expenses:
Gaming 5,391 5,833 16,375 16,455
Lodging 1,226 1,152 3,854 3,835
Food and beverage 1,576 1,610 4,990 4,898
Other 162 157 771 532
Maintenance and utilities 1,024 1,040 3,196 3,440
General and administrative 3,000 3,349 8,891 9,721
Depreciation and amortization 1,117 911 3,293 2,710
--------- --------- --------- ---------
13,496 14,052 41,370 41,591
--------- --------- --------- ---------
Income from operations 888 1,248 2,930 3,801
--------- --------- --------- ---------
Other income (deductions):
Interest and other income 136 143 408 455
Interest and other expense (642) (586) (1,947) (1,828)
--------- --------- --------- ---------
(506) (443) (1,539) (1,373)
--------- --------- --------- ---------
Income before income taxes 382 805 1,391 2,428
Provision for income taxes 59 261 527 700
--------- --------- --------- ---------
Net income $ 323 $ 544 $ 864 $ 1,728
========= ========= ========= =========
Net income per share $ .07 $ .12 $ .19 $ .38
========= ========= ========= =========
Weighted average shares
outstanding 4,498,722 4,498,722 4,497,244 4,498,722
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
-1-
<PAGE> 4
THE SANDS REGENT AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Dollars in thousands) JUNE 30, MARCH 31,
1995 1996
-------- ---------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $10,356 $11,653
Short-term investments 1,858 500
Accounts and notes receivable less allow-
ance for possible losses of $147 and $99 477 501
Inventories 719 766
Prepaid federal income taxes - 617
Deferred federal income tax asset 16 220
Prepaid expenses and other assets 946 1,164
------- -------
Total current assets 14,372 15,421
PROPERTY AND EQUIPMENT:
Land 8,102 8,095
Buildings, ship and improvements 45,106 45,171
Equipment, furniture and fixtures 20,975 21,679
Construction in progress 507 397
------- -------
74,690 75,342
Less accumulated depreciation
and amortization 25,987 27,812
------- -------
48,703 47,530
OTHER ASSETS:
Deferred federal income tax asset 1,526 625
Note receivable 1,251 1,246
Other 401 349
------- -------
3,178 2,220
------- -------
Total assets $66,253 $65,171
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-2-
<PAGE> 5
THE SANDS REGENT AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Dollars in thousands) JUNE 30, MARCH 31,
1995 1996
-------- ---------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,047 $ 2,056
Accrued salaries, wages and benefits 1,887 1,740
Other accrued expenses 1,317 1,220
Federal income tax payable 384 -
Current maturities of long-term debt 10,906 12,117
-------- --------
Total current liabilities 16,541 17,133
LONG-TERM DEBT 17,807 15,108
OTHER 56 28
STOCKHOLDERS' EQUITY:
Preferred stock, $.10 par value, 5,000,000
shares authorized, none issued - -
Common stock, $.05 par value, 20,000,000
shares authorized, 6,898,722 shares
issued 345 345
Additional paid-in capital 13,074 13,074
Retained earnings 40,785 41,838
-------- --------
54,204 55,257
Treasury stock, at cost, 2,400,000 shares (22,355) (22,355)
-------- --------
Total stockholders' equity 31,849 32,902
-------- --------
Total liabilities and stockholders'
equity $ 66,253 $ 65,171
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
-3-
<PAGE> 6
THE SANDS REGENT AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(Dollars in thousands) NINE MONTHS ENDED
MARCH 31,
-------------------
1995 1996
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 864 $1,728
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 3,293 2,710
(Gain) loss on sale of property and
equipment 5 (494)
(Increase) in accounts and notes
receivable (273) (24)
(Increase) decrease in inventories 415 (47)
(Increase) decrease in prepaid
expenses and other current assets 65 (218)
Decrease in other assets 21 44
Increase (decrease) in accounts
payable (516) 107
Increase (decrease) in accrued expenses 738 (244)
(Decrease) in federal income taxes
payable (22) (1,001)
Changes in deferred federal
income taxes (997) 697
(Decrease) in other liabilities (28) (28)
------- -------
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,565 3,230
------- -------
INVESTING ACTIVITIES:
Purchase of short-term investments (1,220) (583)
Sale and maturity of short-term
investments - 1,941
Payments received on note receivable 6 5
Additions to property and equipment (1,507) (1,732)
Proceeds from sale of property and
equipment 17 697
------- -------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (2,704) 328
------- -------
</TABLE>
-4-
<PAGE> 7
THE SANDS REGENT AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
<TABLE>
<CAPTION>
(Dollars in thousands) NINE MONTHS ENDED
MARCH 31,
------------------
1995 1996
------ -------
<S> <C> <C>
FINANCING ACTIVITIES:
Payment of accounts payable for prior
period purchases of property and
equipment (736) (98)
Issuance of long-term debt 225 375
Payments on long-term debt (192) (1,863)
Issuance of common stock 38 -
Payment of dividends on common stock (674) (675)
------- -------
NET CASH USED IN FINANCING ACTIVITIES (1,339) (2,261)
------- -------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (478) 1,297
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 9,669 10,356
------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 9,191 $11,653
======= =======
SUPPLEMENTAL CASH FLOW INFORMATION:
Accounts payable converted to long-
term debt $ 119 -
======= =======
Interest paid, net of amount capitalized $ 1,651 $ 1,542
======= =======
Federal income taxes paid $ 2,475 $ 1,075
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-5-
<PAGE> 8
THE SANDS REGENT AND SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED MARCH 31, 1996 AND 1995
NOTE 1 - BASIS OF PREPARATION
-----------------------------
These statements should be read in connection with the 1995 Annual
Report heretofore filed with the Securities and Exchange Commission as
Exhibit 13 to the Registrant's Form 10-K for the year ended June 30, 1995.
The accounting policies utilized in the preparation of the financial
information herein are the same as set forth in such annual report except as
modified for interim accounting policies which are within the guidelines set
forth in Accounting Principles Board Opinion No. 28.
The Consolidated Balance Sheet at June 30, 1995 has been taken from
the audited financial statements at that date. The interim consolidated
financial information is unaudited. In the opinion of management, all
adjustments, consisting only of normal recurring accruals, necessary to
present fairly the financial condition as of March 31, 1996 and the results
of operations and cash flows for the three and nine months ended March 31,
1996 and 1995 have been included. Interim results of operations are not
necessarily indicative of the results of operations for the full year.
The accompanying Consolidated Financial Statements include the accounts
of the Company and its wholly owned subsidiaries Zante, Inc. ("Zante"),
Patrician, Inc. ("Patrician"), Gulfside Casino, Inc. ("GCI") and Artemis,
Inc. ("Artemis"), and Gulfside Casino Partnership ("GCP") (together the
"Company"). Patrician GCI and Artemis are the sole partners in GCP. Zante,
Inc. owns and operates the Sands Regency hotel/casino in Reno, Nevada and
GCP owns and operates the Copa Casino in Gulfport, Mississippi.
NOTE 2 - COMMITMENTS AND CONTINGENCIES
--------------------------------------
As previously disclosed in the Company's 1995 Annual Report, a lawsuit
was filed in a Mississippi court against GCI, which joined GCP and Patrician
as necessary parties, because of GCI's failure to make payments on certain
obligations due two former shareholders of GCI. Such lawsuit is ongoing
without court final action or other resolution. The Company will continue
to monitor the progress of the lawsuit, the ultimate outcome of which could
include the sale of GCI's ownership interest in GCP.
As a result of the approval of GCP's hurricane evacuation plan by the
Mississippi State Port Authority on February 5, 1996, the Mississippi Gaming
Commission granted a standard two-year gaming license renewal to GCP which
expires in February 1998. GCP had previously been operating under a
conditional gaming license.
-6-
<PAGE> 9
ITEM 2. Management's Discussion and Analysis of
---------------------------------------
Financial Condition and Results of Operations.
----------------------------------------------
Results of operations - Three months ended March 31, 1996 compared to
---------------------------------------------------------------------
three months ended March 31, 1995
---------------------------------
In the three month period ended March 31, 1996, compared to the same
three month period in the prior year, revenues increased from approximately
$14.4 million to $15.3 million and income from operations increased from
$888,000 to $1.2 million. Net income also increased from $323,000, or $.07
per share, in the third quarter of fiscal 1995 to $544,000, or $.12 per
share, in the third quarter of fiscal 1996. The increases in revenue,
income from operations, net income and net income per share are
significantly due to improved operating results from the Copa Casino.
The decrease in lodging revenue of $165,000, in the third quarter of
fiscal 1996 compared to the same quarter in the prior year, is due to a
decrease in hotel occupancy and a lower average room rate. Hotel occupancy
decreased from approximately 89.5% in the third quarter of fiscal 1995 to
83.9% in the third quarter of the current fiscal year. For the same
comparable periods, the average room rate decreased from $25 to $24.
The increase in gaming revenue of $533,000 consists of an increase in
gaming revenue from the Copa Casino of $1.2 million which was offset by a
decrease in gaming revenue at the Sands Regency in Reno of approximately
$667,000. The decrease in gaming revenue in Reno is due to a decrease in
hotel occupancy and a decrease in gaming revenue per occupied room. Gaming
revenue per occupied room decreased from $75 in the third quarter of
fiscal 1995 to $70 in the third quarter of fiscal 1996.
The slight increase in food and beverage revenue of $80,000 is
comprised of $70,000 in revenues generated by the addition of a "Pizza Hut
Express" kiosk, a $139,000 increase in food and beverage revenues from the
Copa Casino and a $138,000 decrease in other food revenue at the Sands
Regency. The "Pizza Hut Express" kiosk is licensed to the Sands Regency
and was opened in April 1995. The decrease in other food revenue at the
Sands Regency is partially due to the decline in hotel occupancy. The
related increase in food and beverage costs and expenses of $34,000 is
similarily composed of additional costs and expenses attributable to the
"Pizza Hut Express" kiosk of approximately $48,000 as offset by other
reduced food costs and expenses from the Sands Regency.
The increase in other revenue of $635,000, is principally due to a gain
on the sale of a small motel owned and operated by the Sands Regency. The
increase in complimentary lodging, food and beverage, deducted from revenue,
of $167,000 is primarily due to an increase in complimentary lodging in
Reno. Such is a result of Company implemented changes to its lodging
programs and packages offered to attract and retain guests.
The increase in gaming costs and expenses of $442,000 in the three
months ended March 31, 1996, compared to the three months ended March 31,
1995, is primarily composed of various cost increases associated with the
increase in gaming revenue of the Copa Casino, including an increase in
Copa Casino gaming taxes and licenses of $151,000, and increases in other
-7-
<PAGE> 10
Results of operations - Three months ended March 31, 1996 compared to
---------------------------------------------------------------------
three months ended March 31, 1995 (continued)
---------------------------------------------
gaming costs and expenses of approximately $154,000. For the same
comparable periods, gaming costs and expenses for the Sands Regency also
increased by approximately $137,000.
The increase in general and administrative costs and expenses of
$349,000 consists primarily of increased advertising, promotional and
customer solicitation costs for the Copa Casino.
The decrease in depreciation and amortization expense of $206,000
includes the elimination of goodwill amortization of $91,000 as a result of
the write-off of Gulfside Casino, Inc. goodwill in June 1995 when the
Company recognized an impairment in long-lived assets associated with the
Copa Casino. Likewise, due to the recognition of such impairment, the
decrease includes a decrease in Copa Casino depreciation expense of
approximately $157,000.
The decrease in interest expense is partially a result of a reduction
in interest-bearing debt owed by the Company.
Results of operations - First nine months of fiscal 1996 compared to 1995
-------------------------------------------------------------------------
In the nine months ended March 31, 1996, compared to the same nine
months in the prior year, revenues increased from approximately $44.3
million to $45.4 million and income from operations increased from $2.9
million to $3.8 million. For the same comparable fiscal periods, net income
also increased from $864,000 to $1.7 million and net income per share
increased from $.19 to $.38. Such increases are significantly due to
improved operating results from the Copa Casino.
The increase in lodging revenue of $111,000, in the first three
quarters of fiscal 1996 compared to the same periods in the prior year, is
due to an increase in the average room rate. In the nine months ended March
31, 1996, the average room rate increased to $33 as compared to $31 in the
comparable nine month period in the prior year. For the same comparable
periods, hotel occupancy declined from 86.2% to 83%.
The increase in gaming revenue of $909,000 million is comprised of an
increase in gaming revenue from the Copa Casino of approximately $2 million
which was offset by a decrease in gaming revenue at the Sands Regency in
Reno of approximately $1.1 million. The decrease in gaming revenue in
Reno, which is primarily slot revenue, is due to the decrease in hotel
occupancy and a decrease in gaming revenue per occupied room. Gaming
revenue per occupied room decreased from $74 in the first nine months of
fiscal 1995 to $72 in the first nine months of fiscal 1996.
The decrease in food and beverage revenue of $152,000 is, in part, due
to the elimination of Copa Casino buffet revenue of approximately $266,000.
During approximately the first four months of fiscal 1995, the Copa Casino
was involved in the operation of a buffet style restaurant located on its
facilities. Thereafter, such buffet style restaurant was operated by a
third party. This decrease was offset by $227,000 in revenues generated by
the addition of a "Pizza Hut Express" kiosk at the Sands Regency in Reno.
-8-
<PAGE> 11
Results of operations - First nine months of fiscal 1995 compared to 1994
-------------------------------------------------------------------------
compared to first nine monts of fiscal 1994 (continued)
-------------------------------------------------------
The "Pizza Hut Express" kiosk, which is licensed to the Sands Regency, was
opened in April 1995. The remaining portion of the decrease is primarily
due to a decrease in other food revenue at the Sands Regency which is
partially due to the decrease in hotel occupancy.
The increase in other revenue of $404,000 is principally comprised of a
gain on the sale of a small motel owned and operated by the Sands Regency of
$506,000 and a decrease in retail liquor store sales of approximately
$267,000. In August 1994, the retail liquor store business, which was
operated by the Company in Reno, was sold to a third party. Such third
party now operates the retail liquor store in Company owned facilities for
rent and other consideration paid to the Company.
The increase in complimentary lodging, food and beverage, deducted from
revenue, of $180,000 is primarily due to an increase in complimentary
lodging in Reno. Such is a result of Company implemented changes to its
lodging programs and packages offered to attract and retain guests.
The increase in gaming costs and expenses of $80,000 is comprised of
an increase in gaming taxes and licenses attributable to Copa Casino of
$184,000, a decrease in Copa estimated health benefit costs of $238,000 and
a decrease in the cost of complimentary goods and services provided to Copa
Casino guests of $130,000. The remaining amount of increase in gaming costs
and expenses of approximately $264,000 is attributable to the Sands Regency.
The slight decrease in food and beverage costs and expenses of
$92,000 includes the elimination of costs and expenses associated with the
buffet style restaurant at the Copa Casino of $316,000 as partially offset
by added costs and expenses associated with the "Pizza Hut Express" kiosk of
approximately $154,000. The decrease in other costs and expenses of
$239,000 is significantly due to the elimination of retail liquor store
sales.
The increase in maintenance and utilities costs and expenses of
$244,000 in the nine months ended March 31, 1996, compared to the nine
months ended March 31, 1995, is principally due to hurricane preparedness
costs and expenses for the Copa Casino, both in general and for Hurricane
Opal. The increase in general and administrative costs and expenses of
$830,000 consists primarily of increased advertising, promotional and
customer solicitation costs for the Copa Casino.
The decrease in depreciation and amortization expense of $583,000
includes the elimination of goodwill amortization of $274,000 as a result
of the write-off of Gulfside Casino, Inc. goodwill in June 1995 when the
Company recognized an impairment in long-lived assets associated with the
Copa Casino. Likewise, due to the recognition of such impairment, the
decrease includes a decrease in Copa Casino depreciation expense of
approximately $431,000.
The decrease in interest expense is partially a result of a reduction
in interest-bearing debt owed by the Company.
-9-
<PAGE> 12
Results of operations - First nine months of fiscal 1995 compared to 1994
-------------------------------------------------------------------------
compared to first nine monts of fiscal 1994 (continued)
-------------------------------------------------------
The decrease in the effective income tax rate from the statutory rate
in the current year nine month period is a result of one-time differences
decreasing federal income taxes by approximately $72,000 and the exclusion
of nontaxable interest income. The increase in the effective income tax
rate from the statutory rate in the prior year nine months is primarily the
result of the prior year deduction of goodwill amortization that is not
deductible for income tax purposes.
As is true for other hotel/casinos in the Reno area, demand for the
Company's facilities declines in the winter. Operating margins and, to a
lesser extent, revenues are lower during the second and third fiscal
quarters due to lower room rates and a lower level of gaming play per
occupied room. The Sands Regency is not affected as severely as many other
hotel/casinos in the Reno area because the Company attracts high levels of
group business during that period. This group business and the Company's
flexible pricing strategy have enabled the Company to maintain relatively
high levels of hotel occupancy. Management anticipates that the trend of
experiencing lower operating margins in the second and third quarters of
each fiscal year will continue.
It appears that such seasonal trends are also applicable to the Copa
Casino in Gulfport, Mississippi. However, because of the limited amount of
time that the Copa has been in operation, the limited amount of time that
gaming has existed on the Mississippi gulfcoast and the rapid expansion of
gaming in Mississippi and nearby Louisiana, the nature and extent of
seasonal fluctuations, if any, are subject to change.
Capital resources and liquidity
-------------------------------
The Company has undertaken a renovation and improvement program for its
Reno facilities which will include remodeling the main casino and other
common areas and renovating approximately 500 hotel rooms. Consideration is
also being given to acquiring a state-of-the-art computerized player
tracking system to enhance customer value. It is presently estimated that
the Company will spend approximately $3.0 million on such renovation and
improvement program in the next 12 months utilizing funds generated from
operations and excess cash investments.
The Company's cash dividend was suspended by action of the Board of
Directors in May 1996 to conserve cash for future growth and operational
needs. On an annual basis, approximately $900,000 was previously expended
for regurlar cash dividend payments.
Other than above, there were no material changes in The Sands
Regent's financial condition nor were there any substantive changes relative
to matters discussed in the Capital Resources and Liquidity section of
Management's Discussion and Analysis of Financial Condition and Results of
Operations as presented in the 1995 Annual Report appearing as exhibit 13 to
the Company's Form 10-K for the year ended June 30, 1995.
-10-
<PAGE> 13
PART II OTHER INFORMATION
Item 1. Legal Proceedings.
---------------------------
NONE
Item 2. Changes in Securities.
-------------------------------
NONE
Item 3. Defaults Upon Senior Securities.
-----------------------------------------
NONE
Item 4. Submission of Matters to a Vote of Security Holders.
-------------------------------------------------------------
NONE
Item 5. Other information.
---------------------------
NONE
Item 6. Exhibits and Reports on Form 8-K.
------------------------------------------
(a) Exhibits
NONE
(b) Reports on Form 8-K:
NONE
-11-
<PAGE> 14
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE SANDS REGENT
(Registrant)
Date: May 14, 1996 By /S/ David R. Wood
-------------------------------------------
David R. Wood, Executive Vice President and
Principal Accounting and Financial Officer
-12-
<PAGE> 15
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Page
------- ------------
<S> <C>
27 Financial Data Schedule.........................
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> MAR-31-1996
<CASH> 11,653
<SECURITIES> 500
<RECEIVABLES> 600
<ALLOWANCES> 99
<INVENTORY> 766
<CURRENT-ASSETS> 15,421
<PP&E> 75,342
<DEPRECIATION> 27,812
<TOTAL-ASSETS> 65,171
<CURRENT-LIABILITIES> 17,133
<BONDS> 15,108
0
0
<COMMON> 345
<OTHER-SE> 32,557
<TOTAL-LIABILITY-AND-EQUITY> 65,171
<SALES> 5,923
<TOTAL-REVENUES> 45,392
<CGS> 4,898
<TOTAL-COSTS> 25,720
<OTHER-EXPENSES> 15,871
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,828
<INCOME-PRETAX> 2,428
<INCOME-TAX> 700
<INCOME-CONTINUING> 1,728
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,728
<EPS-PRIMARY> .38
<EPS-DILUTED> .38
</TABLE>
