- -----------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1995
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 0-13800
INTERNATIONAL AMERICAN HOMES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 22-2472608
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
6001 MONTROSE ROAD, ROCKVILLE, MARYLAND 20852
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (301) 231-8745
NOT APPLICABLE
(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 (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 <check-mark> No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes <check-mark> No
As of July 31, 1995, the number of shares outstanding of the registrant's
common stock, par value $.01, was 2,612,132. After giving effect to the future
issuance of 112,263 shares of common stock to creditors, pursuant to the
Company's confirmed Plan of Reorganization, the aggregate number of shares of
common stock outstanding will be 2,724,395.
- ------------------------------------------------------------------------------
Total number of pages: 15
<PAGE>
Page 2
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
INDEX
PAGE
Part I. Financial Information:
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets (Unaudited) as of June 30, 1995 and
March 31, 1995 .................................................... 3
Consolidated Statements of Income and Retained Earnings
(Unaudited) for the three months ended June 30, 1995 and 1994.....5
Consolidated Statements of Cash Flows (Unaudited) for the three
months ended June 30, 1995 and 1994 ............................... 6
Notes to Consolidated Financial Statements (Unaudited)............. 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations ............................................ 11
Part II. Other Information:
Item 6. Exhibits and Reports on Form 8-K ................................. 13
Signatures ................................................................ 14
<PAGE>
Page 3
Part I. Financial Information
ITEM 1
CONSOLIDATED FINANCIAL STATEMENTS
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
ASSETS
June 30, 1995 March 31, 1995
------------- --------------
CASH AND SHORT-TERM INVESTMENTS
($482 and $457 restricted) $ 1,369 $ 1,938
RECEIVABLES 1,114 444
REAL ESTATE INVENTORY 17,304 16,997
COLLATERAL FOR BONDS PAYABLE 7,403 7,620
PROPERTY AND EQUIPMENT - less
accumulated depreciation of
$172 and $162 102 106
OTHER ASSETS 568 583
-------- --------
TOTAL ASSETS $ 27,860 $ 27,688
======== ========
The accompanying notes to consolidated financial statements are an integral
part of these statements.
<PAGE>
Page 4
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, 1995 March 31, 1995
------------- --------------
<S> <C> <C>
MORTGAGE NOTES AND LOANS PAYABLE
Construction and mortgage notes
secured by real estate inventory $ 10,061 $ 9,664
Other secured notes payable 42 60
-------- --------
10,103 9,724
BONDS PAYABLE 7,148 7,362
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 4,612 4,908
CUSTOMER DEPOSITS 179 183
------- --------
Total Liabilities 22,042 22,177
------- --------
PREFERRED STOCK - $.01 par value, 4,000,000 shares - -
authorized, none issued
COMMON STOCK - $.01 par value, 10,000,000 shares authorized,
2,894,343 shares issued including 112,263 shares to be
issued to creditors 29 29
ADDITIONAL PAID-IN CAPITAL 2,348 2,348
RETAINED EARNINGS 3,443 3,136
TREASURY STOCK - 169,948 shares (2) (2)
------- ------
Total Stockholders' Equity 5,818 5,511
------- ------
TOTAL LIABILITIES AND $ 27,860 $ 27,688
STOCKHOLDERS' EQUITY ======== ========
The accompanying notes to consolidated financial statements are an integral
part of these statements.
<PAGE>
Page 5
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)
</TABLE>
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 1995 June 30, 1994
------------- -------------
<S> <C> <C>
REVENUES
Home sales $ 14,611 $ 10,168
Interest and other income 209 281
-------- --------
14,820 10,449
======== ========
COSTS AND EXPENSES
Cost of home sales 12,617 8,449
Selling, general and administrative 1,664 1,241
Interest 202 270
Depreciation 10 20
-------- --------
14,493 9,980
-------- --------
INCOME BEFORE INCOME TAXES 327 469
PROVISION FOR INCOME TAXES 20 180
-------- --------
NET INCOME 307 289
RETAINED EARNINGS BEGINNING OF PERIOD 3,136 2,049
-------- --------
RETAINED EARNINGS END OF PERIOD $ 3,443 $ 2,338
======== =========
PER SHARE DATA (Primary and Fully Diluted)
Net income $ .11 $ .11
========= =========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Primary and fully diluted 2,724,395 2,724,395
========= =========
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these statements.
<PAGE>
Page 6
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
June 30, 1995 June 30, 1994
------------------ ------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 307 $ 289
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 10 20
Changes in operating assets and liabilities
Increase in receivables (670) (462)
Increase in real estate inventory (307) (2,594)
Decrease in collateral for bonds payable 217 337
Decrease in accounts payable and accrued liabilities (296) (388)
Decrease (increase) in customer deposits (4) 55
Decrease in other assets 15 128
-------- --------
Net cash used in operating activities (728) (2,615)
-------- --------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Property and equipment, net (6) (15)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from mortgage notes and loans payable 8,753 6,433
Payments of mortgage notes and loans payable (8,374) (5,465)
Repayments of bonds payable - finance subsidiaries (214) (308)
-------- --------
Net cash provided by financing activities 165 660
-------- --------
NET DECREASE IN CASH AND EQUIVALENTS (569) (1,970)
CASH AND EQUIVALENTS BEGINNING OF PERIOD 1,938 3,353
-------- --------
CASH AND EQUIVALENTS END OF PERIOD $ 1,369 $ 1,383
======== ========
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these statements.
<PAGE>
Page 7
INTERNATIONAL AMERICAN HOMES, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
International American Homes, Inc. (the "Company") was incorporated under the
laws of the State of Delaware on April 27, 1983. The Company, through its
subsidiaries, designs, builds, and sells single-family homes and townhomes.
The Company currently conducts its building activities in Metropolitan
Washington, D.C. and Greater Tampa, Florida.
The interim consolidated financial statements have been prepared without audit.
In the opinion of management, all adjustments for interim periods presented
have been made (which include only normal recurring accruals and deferrals) for
a fair presentation of consolidated financial position, results of operations,
and cash flows. The consolidated financial statements and condensed notes
should be read in conjunction with the Consolidated Financial Statements and
Notes thereto included in the Company's latest Annual Report on Form 10-K.
Results for interim periods are not necessarily indicative of the results which
might be expected for a full year.
Certain amounts in the prior period's consolidated financial statements have
been reclassified to conform with the current period's presentation.
NOTE 2 - REORGANIZATION UNDER CHAPTER 11
On April 16, 1990, the Company and certain of its wholly-owned subsidiaries
filed voluntary petitions (the "Bankruptcy Petitions") for relief under Chapter
11, Title 11 of the United States Code in the United States Bankruptcy Court
for the District of New Jersey (the "Bankruptcy Court"). Certain related
partnerships filed similar petitions in the same Court in 1990 and 1991.
Under the bankruptcy proceeding, substantially all claims against the Company
as of the date of the filing of the Bankruptcy Petitions were stayed
while the Company continued operations as a debtor-in-possession.
A Third Amended Joint Plan of Reorganization dated June 29, 1992 was filed with
the Bankruptcy Court. A Second Amended Disclosure Statement with respect to
the Third Amended Joint Plan of Reorganization and exhibits thereto was
approved by Bankruptcy Court Order dated June 29, 1992. On August 12, 1992,
the Bankruptcy Court entered an order confirming the Third Amended Joint Plan
of Reorganization. On October 29, 1992, the Bankruptcy Court approved certain
technical modifications to the Third Amended Joint Plan of Reorganization to be
effective as of August 12, 1992. A Fourth Amended Joint Plan of Reorganization
dated November 17, 1992, containing those technical modifications, was filed
with the Bankruptcy Court. (The Third Amended Joint Plan of Reorganization and
the Fourth Amended Joint Plan of Reorganization are collectively referred to as
the "Plan" or the "Plan of Reorganization.")
The Plan provides for an initial cash distribution to creditors of
approximately $4,700,000 less administrative expenses. The Plan further
provides for subsequent distributions equal to 50 percent of future cash flows
(as defined in the Plan), if any, for the periods ending June 30, 1994 through
June 30, 1998. The Plan also provides for the issuance of 2,043,296 shares of
the Company's common stock to the creditors resulting in the dilution of the
existing stockholders to 25 percent of the common stock outstanding after
issuance of the additional shares to the creditors.
<PAGE>
Page 8
The Company made partial initial distributions of cash amounting to $3,741,000
and issued 1,931,033 shares of the Company's common stock to the creditors
through June 30, 1995. The Company anticipates that the remainder of the
initial cash distribution amounting to approximately $290,000 and the remaining
112,263 shares of stock will be distributed to the creditors once certain
remaining disputed claims are resolved.
The Company has calculated the cash flow (as defined in the Plan) for the
period ended on June 30, 1995 and has determined that there was no excess cash
flow (as defined in the Plan) for that period and accordingly no distribution
to creditors was required.
The accompanying financial statements reflect the estimated effect of the
reorganization, including the settlement of liabilities and other claims, the
estimated present value of future cash distributions to creditors of $1,322,000
and the issuance of 112,263 additional shares of common stock.
NOTE 3 - STATEMENTS OF CASH FLOWS
For purposes of the statements of cash flows, the Company generally considers
all highly liquid instruments purchased with an original maturity of three
months or less to be cash equivalents. The Company paid interest and income
taxes as follows (in thousands):
Period Interest Income Taxes
- -------------------------------- -------- ------------
Three months ended June 30, 1995 $ 556 $ 21
Three months ended June 30, 1994 507 42
NOTE 4 - INTEREST INCLUDED IN COST OF SALES
Interest included in cost of sales is as follows (in thousands):
Period Interest
- -------------------------------- --------
Three months ended June 30, 1995 $ 356
Three months ended June 30, 1994 269
<PAGE>
Page 9
NOTE 5 - CONDENSED FINANCIAL STATEMENTS OF CONSOLIDATED FINANCE SUBSIDIARIES
The Company's wholly-owned finance subsidiaries were established to sell
collateralized mortgage obligations through participation in various
multi-builder bond programs. In these sales, which last occurred in 1987, the
Company originated and pooled mortgage loans which were then pledged as
collateral for bonds payable. The interest rates on the mortgage loans that
comprise the collateral for bonds payable roughly equate with the interest
rates on the related bonds payable.
Condensed financial information is as follows (in thousands):
Condensed Balance Sheets
June 30,1995 March 31, 1995
------------ --------------
Assets:
Collateral for bonds payable $ 7,403 $ 7,620
Other assets 11 9
------- -------
$ 7,414 $ 7,629
======= =======
Liabilities and Equity:
Bonds payable $ 7,148 $ 7,362
Equity and intercompany advances 266 267
------- -------
$ 7,414 $ 7,629
======= =======
Condensed Statements of Operations
Three Months Three Months
Ended Ended
June 30, 1995 June 30, 1994
------------- -------------
Revenues $ 182 $ 261
===== =====
Income before income taxes $ 6 $ 5
===== =====
<PAGE>
Page 9
NOTE 6 - COMMITMENTS AND CONTINGENCIES
At June 30, 1995, the Company had commitments to purchase 772 finished building
lots at a total purchase price of approximately $25,268,000, over a four year
period. Substantial deposits will be forfeited if the Company is unable to
satisfy these commitments.
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 financial position or the results of operations.
NOTE 7 - COMMON STOCK
At the 1994 Annual Meeting of Stockholders, which was held on September 13,
1994, the stockholders approved a proposal to adopt certain amendments (the
"Amendments") to the Company's Restated Certificate of Incorporation (i) to
effect a 1-for-10 reverse stock split of the Company's issued and outstanding
common stock (the "Reverse Stock Split") and (ii) to change the number of
authorized shares of common stock from 30 million to 10 million. The
Amendments did not change the par value of the common stock which remained at
$.01 per share. The Amendments became effective on May 31, 1995 with the
filing of a Certificate of Amendment with the Secretary of State of Delaware
on May 31, 1995. The effect of the Reverse Stock Split has been retroactively
reflected in the statements for all periods presented.
Under the Plan of Reorganization, 2,043,296 shares of common stock, as adjusted
for the Reverse Stock Split, were to be issued pro rata to the creditors which
would represent 75% of the outstanding common stock after issuance of those
shares. 1,931,033 of those shares have been issued and the remaining 112,263
shares will be distributed to the creditors once certain remaining disputed
claims are resolved.
Income per share is based on the number of shares outstanding including the
additional shares to be issued pursuant to the Plan.
<PAGE>
Page 11
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
THE PLAN OF REORGANIZATION
See Note 2, "Reorganization Under Chapter 11" of Notes to Consolidated
Financial Statements of the Company appearing elsewhere in this report.
RESULTS OF OPERATIONS
The following table sets forth certain information with respect to homes
delivered and homes sold during the periods presented as well as homes sold
under contract but not delivered ("Backlog") at the dates shown (dollars in
thousands).
Three Months Ended
June 30,
----------------------------------------
1995 1994
--------- ---------
Homes delivered
Units 97 74
Home sales revenue $ 14,611 $ 10,168
Average sales price $ 150.6 $ 137.4
Homes sold
Units 78 93
Sales value $ 10,924 $ 15,053
Average sales price $ 140.1 $ 161.9
June 30,
---------------------------------------
1995 1994
-------- --------
Backlog
Units 102 130
Sales value $ 17,338 $ 22,378
Average sales price $ 170.0 $ 172.1
The increase in home sales revenues for the three months ended June 30, 1995
compared to the three months ended June 30, 1994 results primarily from an
increase in the number of homes delivered but is also due to an increase in the
percentage of homes delivered in Metropolitan Washington, D.C., where the
average sales price is higher than in Greater Tampa, Florida, and to increases
in the average sales price of homes delivered.
<PAGE>
Page 12
The Company realized a decrease in the number of homes sold during the three
months ended June 30, 1995 compared to the three months ended June 30, 1994.
The average sales price of the homes sold also decreased as did the Backlog at
June 30, 1995 when compared to June 30, 1994. The decrease in the number of
homes sold is due primarily to a decrease in the number of homes sold in
Metropolitan Washington, D.C. where the effects of rising mortgage interest
rates and uncertain local economic conditions have negatively impacted the
level of home sales in general. The decrease in the average sales price of the
homes sold is attributable to a larger proportion of sales in Greater Tampa,
Florida, where prices are lower.
The Backlog at June 30, 1995 and at June 30, 1994 includes $2,202,000 and
$5,510,000 of contingent contracts, respectively.
The following table sets forth, for the periods indicated, certain information
regarding the Company's operations (dollars in thousands).
<TABLE>
<CAPTION>
Three Months Ended June 30,
--------------------------------------------------------------
1995 1994
------------------------ -------------------------
Dollars % Dollars %
--------- ------ ---------- ------
<S> <C> <C> <C> <C>
Home sales revenues $ 14,611 100.0% $ 10,168 100.0%
Cost of home sales 12,617 86.4 8,449 83.1
Gross profit 1,994 13.6 1,719 16.9
Selling, general and administrative 1,664 11.4 1,241 12.2
expenses
Pre-tax profit 327 2.2 469 4.6
</TABLE>
While gross profit increased for the three months ended June 30, 1995 compared
to the three months ended June 30, 1994, gross profit as a percentage of home
sales revenue decreased from 16.9% to 13.6%. This percentage decrease results
primarily from comparative increases in developed lot costs as well as
increases in other construction costs. These cost increases could not be
recouped through higher sales prices due to the strong competition in the
markets where the Company operates.
Selling, general and administrative expenses for the three months ended June
30, 1995 increased when compared with the prior comparable period but decreased
as a percentage of the related home sales revenue. The increase in selling,
general and administrative expenses is due to the increase in sales while the
percentage decrease results primarily from the more efficient absorption of the
fixed components of selling, general and administrative expenses over higher
revenues.
The change in pre-tax profit for the three months ended June 30, 1995 compared
to the three months ended June 30, 1994 is a reflection of the changes in gross
profit and in selling, general and administrative expenses.
The level of mortgage interest rates and uncertain local economic conditions in
the areas where the Company operates have adversely affected sales of new homes
and the level of gross profit. The Company is unable to predict the extent to
which such factors will continue to adversely affect the Company's operations
in the future.
Interest and other income includes $182,000 and $261,000 and interest expense
includes $173,000 and $250,000 for the three months ended June 30, 1995 and for
the three months ended June 30, 1994,
<PAGE>
Page 13
respectively, from wholly-owned finance subsidiaries established to sell
collateralized mortgage obligations through participation in various multi-
builder bond programs.
LIQUIDITY AND CAPITAL RESOURCES
The Company, through its subsidiaries, obtains financing from commercial banks
for a portion of the cost of acquiring finished building lots and for most of
the costs of the construction of homes. This financing is generally available
for homes that are subject to a contract of sale and also for a limited number
of homes in advance of sale. The Company's loan commitments as well as current
banking regulations limit the portion of each home that can be financed to
approximately 75% of its value. Since the Company uses its own capital
resources to fund those costs that cannot be financed, the Company's future
growth will be limited by the amount of such resources. As a result of the use
of these financing arrangements, the Company is currently and expects to
continue to be, highly leveraged.
The Company's subsidiaries currently have financing agreements in the aggregate
amount of $30,550,000 with commercial banks located in the areas in which the
subsidiaries operate. The terms of these financing agreements vary, are each
for one year or more from their date of origination, (with expiration dates
ranging from September 1995 to May 1997), are generally guaranteed by the
Company, and are all secured by the related real estate inventory. The
Company's Chairman and President has personally guaranteed certain of these
obligations up to a maximum aggregate principal amount of $19,250,000, of which
$5,462,000 was outstanding at June 30, 1995.
The Company generally acquires finished building lots under contracts which
spread the time for acquisition of those lots over a substantial period of time
roughly coinciding with the estimated time required for the sale of the homes
on those lots. At June 30, 1995, the Company had commitments to purchase 772
finished building lots at a total purchase price of approximately $25,268,000
over a four year period. These commitments assure a continuing supply of
finished building lots in the future. Substantial deposits will be forfeited
if the Company is unable to satisfy these commitments.
The Company's short-term liquidity and its ability to operate over the short-
term are reasonably assured by the financing agreements in place, by the
Company's backlog of sales contracts, and by the commitments to acquire
finished building lots. The Company's long-term liquidity is not affected
by any material capital expenditures but would be impacted by the inability to
renew certain of the financing agreements when they mature. Also having an
impact on the Company's long-term liquidity are the strength of the housing
markets in the areas where the Company operates and the ability of the Company
to maintain a continued supply of finished building lots.
Management believes that the Company currently has adequate financing and
liquidity to meet its financial obligations and will be able to fund the
acquisition and construction of inventory to support modest growth. However,
there is no assurance that such financing will be available to the Company in
the future. In addition, homebuilding is a cyclical industry with economic
conditions having a substantial impact on operating performance.
The Plan does not permit the subsidiaries of the Company to pay any dividends to
the parent company. The Plan further prohibits the Company and its subsidiaries
from acquiring debt securities from or loaning or advancing any monies to any
other party except in the ordinary course of business. These restrictions are
effective until August 12, 1998 and by their nature require the Company's
subsidiaries to be self sufficient. From time to time, a subsidiary of the
Company makes a purchase of finished building lots from or on behalf of another
and later resells those lots to the latter on terms that will assure that the
accommodation purchaser recovers its costs plus reasonable compensation for
having made the purchase. While such transactions can affect temporarily
the cash flow of each of the participating subsidiaries, they
<PAGE>
Page 14
do not impact the overall cash flow of the Company. The Plan further provides
for the payment of distributions to the creditors equal to 50 percent of cash
flows (as defined in the Plan), if any, generated by the Company's subsidiaries
for the periods ending June 30, 1993 through June 30, 1998. Any such payment
of 50 percent of the cash flow would be funded from the cash flow generated.
Despite these requirements and restrictions, management believes that the
Company and each of its subsidiaries currently have adequate liquidity to meet
their financial obligations. However, there is no assurance that these
requirements and restrictions will not have an impact on the future liquidity
of the Company or its subsidiaries.
Part II. Other Information
ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
On May 31, 1995 the registrant filed a Current Report on Form 8-K with
respect to Item 5 (other events).
<PAGE>
Page 15
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.
INTERNATIONAL AMERICAN HOMES, INC.
Date: AUGUST 4, 1995 By: /S/ ROBERT J. SUAREZ
---------------------
Robert J. Suarez
President
Date: AUGUST 4, 1995 By: /S/ MICHAEL P. VILLA
----------------------
Michael P. Villa
Vice President, Treasurer, and
Chief Financial Officer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,369
<SECURITIES> 0
<RECEIVABLES> 1,114
<ALLOWANCES> 0
<INVENTORY> 17,304
<CURRENT-ASSETS> 0*
<PP&E> 274
<DEPRECIATION> 172
<TOTAL-ASSETS> 27,860
<CURRENT-LIABILITIES> 0*
<BONDS> 17,251
<COMMON> 29
0
0
<OTHER-SE> 5,789
<TOTAL-LIABILITY-AND-EQUITY> 27,860
<SALES> 14,611
<TOTAL-REVENUES> 14,820
<CGS> 12,617
<TOTAL-COSTS> 14,493
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 327
<INCOME-TAX> 20
<INCOME-CONTINUING> 307
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 307
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
* - The Company does not present a classified balance sheet.
</TABLE>
