May 14, 1999
OFIS Filer Support
SEC Operations Center
6842 General Green Way
Alexandria, VA 22312-2413
Dear Sirs:
Pursuant to regulations of the Securities and Exchange Commission,
submitted herewith for filing on behalf of Family Steak Houses of Florida,
Inc. is the Company's Quarterly Report on Form 10-Q for the Fiscal Quarter
ended March 31, 1999.
This filing is being effected by direct transmission to the Commission's
Edgar System.
Very truly yours,
Loretta C. Abbey
Controller
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter ended March 31, 1999
Commission File No. 0-14311
FAMILY STEAK HOUSES OF
FLORIDA, INC.
Incorporated under the laws of IRS Employer Identification
Florida No. 59-2597349
2113 FLORIDA BOULEVARD
NEPTUNE BEACH, FLORIDA 32266
Registrant's Telephone No. (904) 249-4197
Indicate by check mark whether the registrant 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_____
Title of each class Number of shares outstanding
Common Stock 2,409,026
$.01 par value As of May 7, 1999
FAMILY STEAK HOUSES OF FLORIDA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and the instructions
to Form 10-Q, and do not include all the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation of the results for
the interim period have been included. Operating results for the
thirteen week period ended March 31, 1999 are not necessarily
indicative of the results that may be expected for the fiscal
year ending December 29, 1999. For further information, refer to
the financial statements and footnotes included in the Company's
Annual Report on Form 10-K for the fiscal year ended December 30,
1998.
The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries. All significant
intercompany profits, transactions and balances have been
eliminated.
Note 2. Earnings Per Share
Basic earnings per share for the thirteen weeks ended March 31,
1999 and April 1, 1998 were computed based on the weighted
average number of common shares outstanding. Diluted earnings per
share for those periods have been computed based on the weighted
average number of common shares outstanding, giving effect to all
dilutive potential common shares that were outstanding during the
period. Dilutive shares are represented by shares under option
and stock warrants.
Note 3. New Accounting Standards
In June 1998, the Financial Accounting Standards Board issued
SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities". This Statement standardizes the accounting for
derivative instruments and hedging activities by requiring that
an entity recognize those items as assets or liabilities in the
statement of financial position and measure them at fair value.
If certain conditions are met, a derivative instrument may be
specifically designated as (a) a hedge of the exposure to changes
in the fair value of a recognized asset or liability, or of an
unrecognized firm commitment, (b) a hedge of the exposure to
variability in the cash flows of recognized assets, liabilities
or forecasted transactions or (c) a hedge of the foreign currency
exposure of an unrecognized firm commitment, an available-for-
sale security, a forecasted transaction or a net investment in a
foreign operation. This Statement is effective for fiscal
quarters of fiscal years beginning after June 15, 1999.
Management has not yet determined the impact of this Statement of
the presentation of financial statements of the Company.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Quarter Ended March 31, 1999 versus April 1, 1998
The Company experienced an increase in total sales during
the first thirteen weeks of 1999 compared to the first thirteen
weeks of 1998. Same-store sales (average unit sales in
restaurants that have been open for at least 18 months and
operating during comparable weeks during the current and prior
year) in the first quarter of 1999 decreased 1.1% from the same
period in 1998, compared to a decrease of 2.8% from 1998 as
compared to 1997.
Management believes that the decrease in same-store sales is
primarily due to the effects of increasing competition, including
several new or remodeled restaurants opened by competitors in
areas close to Company restaurants. Management is seeking to
improve sales trends by focusing on improved restaurant
operations, and devising and implementing competitive strategies
to offset the effects of new competition. Management plans to
sell restaurants which are not meeting sales and profit
expectations. To this end, the Company closed two restaurants in
January 1999 and has listed a total of six restaurants for sale.
Proceeds from any sales of restaurants would be used either to
reduce long-term debt or build new restaurants with more
competitive facilities in superior locations. Due primarily to
the negative effects of increasing competition on the Company's
sales and profitability, in March 1998 the Company announced that
it had retained an investment banking firm specializing in the
restaurant industry to assist the Company in identifying and
evaluating strategic opportunities which would enhance
shareholder value. The Company is continuing to evaluate
strategic opportunities recommended by the investment banking
firm, and to pursue such strategies it deems appropriate.
However, there can be no assurance that a restructuring or
transaction will result from this process.
The costs and expenses of the Company's restaurants include
food and beverage, payroll, payroll taxes and employee benefits,
depreciation and amortization, repairs, maintenance, utilities,
supplies, advertising, insurance, property taxes, rents, and
licenses. The Company's food, beverage, payroll, and employee
benefit costs as a percentage of sales are believed to be higher
than the industry average, due to the Company's philosophy of
providing customers with high value of food and service for every
dollar a customer spends. In total, food and beverage, payroll
and benefits, depreciation and amortization and other operating
expenses as a percentage of sales increased to 86.0% in the first
quarter of 1999 from 85.7% in same quarter of 1998.
Food and beverage costs as a percentage of sales increased
from 38.7% in 1998 to 38.9% in 1999. Payroll and benefit costs as
a percentage of sales increased from 27.7% in 1998 to 27.8% in
1999.
Depreciation and amortization expenses increased from 4.4%
in 1998 to 5.0% in 1999, primarily due to additions to property
and equipment over the last twelve months.
General and administrative expenses as a percentage of sales
decreased from 5.8% in the first quarter of 1998 to 5.7% in the
same quarter in 1999. This decrease was primarily due to costs
associated with the Company's reverse stock split approved by the
Company's shareholders in February 1998.
Interest expense decreased from $395,500 in the first
quarter of 1998 to $382,400 in the same quarter of 1999. The
decrease was due to the Company capitalizing interest expense of
$33,600 in 1999, whereas no interest expense was capitalized in
the first quarter of 1998.
The effective income tax rates for the first three months of
1998 and 1999 were 20.0% and 0.0%, respectively. The 0% rate in
1999 was due to the use of net operating loss carryforwards to
offset 1999 taxable income.
Net earnings were $164,600 and $233,800 in the first
quarters of 1998 and 1999, respectively. Earnings per share
assuming dilution for the quarter were 7 cents in 1998 compared
to 10 cents in 1999.
The Company's operations are subject to some seasonal
fluctuations. Revenues per restaurant generally increase from
January through April and decline September through December.
Operating results for the quarter ended March 31, 1999 are not
necessarily indicative of the results that may be expected for
the fiscal year ending December 29, 1999.
Liquidity and Capital Resources
Substantially all of the Company's revenues are derived from
cash sales. Inventories are purchased on credit and are converted
rapidly to cash. Therefore, the Company does not carry
significant receivables or inventories and, other than repayment
of debt, working capital requirements for continuing operations
are not significant.
At March 31, 1999, the Company had a working capital surplus
of $289,800 compared to a working capital deficit of $744,100 at
December 30, 1998. The increase in working capital during the
first three months in 1999 was due primarily to increases in cash
provided from new borrowings under the Company's long-term debt
agreement and cash provided by operating activities during the
first quarter of 1999.
Cash provided by operating activities increased 1.7% from
$1,022,500 in the first quarter of 1998 to $1,039,600 in the
first quarter of 1999.
The Company spent approximately $910,700 in the first
quarter of 1999 for property and property equipment. Total
capital expenditures for equipment in 1999, based on present
costs and plans for capital improvements, are estimated to be
$4,800,000. The Company projects that proceeds from the Company's
financing agreements and cash generated from operations will be
sufficient to fund these improvements.
In December 1996, the Company entered into a $15.36 million
Loan Agreement with FFCA Mortgage Corporation ("FFCA"). The Loan
Agreement governs seventeen Promissory Notes payable to FFCA.
Each Note is secured by a mortgage on a Company restaurant
property. The Promissory Notes provide for a term of twenty years
and an interest rate equal to the thirty-day LIBOR rate plus
3.75%, adjusted monthly. The Loan Agreement provides for various
covenants, including the maintenance of prescribed debt service
coverages. As of March 31, 1999, the outstanding balance due
under the loan was $14,288,000.
The Company used the proceeds of the FFCA loan to retire its
Notes with Cerberus Partners, L.P. ("Cerberus") and its loans
with the Daiwa Bank Limited and SouthTrust Bank of Alabama, N.A.
In addition, the Company retired warrants for 210,000 shares of
the Company's common stock previously held by Cerberus. Cerberus
continues to hold Warrants to purchase 140,000 shares of the
Company's common stock at an exercise price of $2.00 per share.
Also in December 1996, the Company entered into a separate
loan agreement with FFCA under which it borrowed an additional
$2,590,000 in 1998. This additional financing is evidenced by
three additional Promissory Notes secured by mortgages on three
Company restaurant properties. The terms and conditions of this
loan agreement are substantially identical to those of the loan
agreement described above. As of March 31, 1999, the outstanding
balance under this loan was $2,555,700.
In October 1998, the Company received two commitments for
new financing from FFCA. The first commitment provides for
funding of a maximum of $3,000,000, secured by mortgages on three
Company restaurant properties, with an expiration date of May 31,
1999. In March 1999, the Company borrowed $1,300,000 under this
agreement. The second commitment was for construction financing
for two new restaurants to be built in 1999. Terms of this
commitment include funding of a maximum of $1,600,000 per
restaurant, with an expiration date of October 1, 1999. Other
terms and conditions of these loan agreements are substantially
identical to those of the $15.36 million Loan Agreement described
above.
Proceeds from the two new loan commitments should be
sufficient to satisfy the Company's capital requirements through
the end of 1999. The Company's ability to build additional
restaurants or make other capital improvements after 1999 is
dependent on its ability to secure additional new financing.
The preceding discussion of liquidity and capital resources
contains certain forward-looking statements. Forward-looking
statements involve a number of risks and uncertainties and other
risks identified from time to time in the Company's annual
report, quarterly filings, and public announcements.
Recent Developments
Change in Listing of Securities on the NASDAQ Stock Market
On February 10, 1999, the Company received notice from
NASDAQ that the listing of its common stock was moved from the
NASDAQ National Market to the NASDAQ SmallCap Market, due to a
failure to comply with the $5.0 million minimum public float
requirement of the National Market. The new listing on the
SmallCap Market was effective February 12, 1999, but is
contingent upon NASDAQ's review of the Company's application. The
Company filed a listing application for the SmallCap Market and
is awaiting NASDAQ's review for final approval of the Company's
listing.
The SmallCap Market has various listing and maintenance
requirements, including requirements that (i) the Company
maintain at least $2.0 million in net tangible assets, (ii) the
minimum bid price of the Common Stock be $1.00 or more per share,
(iii) there be at least 500,000 shares in the public float,
valued at a minimum of $1.0 million, (iv) the Common Stock have
at least two active market makers and (v) the Common Stock be
held by at least 300 shareholders owning a minimum of 100 shares.
On March 23, 1999, the Company received notice from NASDAQ
that the Company's closing bid price had declined below $1.00 per
share, and has remained below the $1.00 minimum requirement since
that time. Accordingly, NASDAQ determined to continue the listing
of the Company's securities on the Nasdaq SmallCap Market
pursuant to the following exception. On or before June 21, 1999,
the Company must meet or exceed a closing bid price of $1.00 per
share; immediately thereafter, the Company's closing bid price
must meet or exceed $1.00 per share for a minimum of ten
consecutive trading days. In order to fully comply with the terms
of this exception, the Company must be able to demonstrate
compliance with all requirements for continued listing. In the
event the Company fails to meet any of the terms of this
exception, the Company's securities will be delisted from the
Nasdaq SmallCap Market.
If the Company's stock is delisted from NASDAQ, trading in
the Common Stock would thereafter be conducted on the over-the-
counter markets in the so-called "pink sheets" or the National
Association of Securities Dealers, Inc.'s "Electronic Bulletin
Board". Consequently, the liquidity of the Company's securities
could be impaired, not only in the number of shares that could be
bought and sold, but also as a result of delays in the timing of
the transactions, a reduction in the number and quality of
security analysts' and the news media's coverage of the Company,
lower prices for the Company's securities than might otherwise be
attained and a larger spread between the bid and asked prices for
the Company's securities.
In addition, if the Company's securities were to be delisted
from the NASDAQ SmallCap Market, the Company's securities could
become subject to Rule 15g-9 under the Exchange Act relating to
penny stocks, which imposes additional sales practice
requirements on broker-dealers which sell such securities to
persons other than established customers and "accredited
investors" (generally, individuals with net worth in excess of
$1,000,000 or annual incomes exceeding $200,000, or $300,000
together with their spouses). Commission regulations define a
"penny stock" to be any equity security that is not listed on The
NASDAQ Stock Market or a national securities exchange and that
has a market price (as therein defined) of less than $5.00 per
share or with an exercise price of less than $5.00 per share,
subject to certain exceptions. If the Company's securities were
subject to the rules on penny stocks, the market liquidity for
the Company's securities could be adversely affected.
In order to settle litigation and other matters between the
Company and Bisco Industries, its president and chief executive
officer, Glen F. Ceiley and other affiliates ("Bisco"), the
Company entered into a Standstill and Settlement Agreement with
Bisco in February 1998. Under this agreement, Bisco agreed, among
other matters, to (i) not initiate the solicitation of proxies or
any shareholder vote in opposition to the Board's recommendations
for the 1998 Annual Meeting of Shareholders (ii) vote shares of
the Company's stock owned by Bisco in favor of the Company's
slate of Director nominees for the 1998 Annual Meeting of
Shareholders and (iii) acquire no more than 19.9% of the total
outstanding shares of the Company's common stock. In turn, the
Company agreed, among other matters, to (i) dismiss certain
litigation against Bisco and (ii) to appoint two Bisco nominees
to its Board of Directors. As this agreement expired on February
24, 1999, these parties are not longer subject to the foregoing
restrictions.
Bisco has filed a preliminary proxy statement with the
Securities and Exchange Commission indicating that it intends to
submit its own slate of directors to the Company's shareholders
at the 1999 Annual Meeting of Shareholders scheduled for July 1,
1999. The Company intends to file a proxy statement recommending
that the shareholders reelect the seven directors as currently
serving, including Glen Ceiley and Jay Conzen of Bisco.
INFORMATION SYSTEMS AND THE YEAR 2000
General. The Company uses and is dependent upon a significant
number of computer software programs and operating systems to
conduct its business. Such programs and systems include those
developed and maintained by the Company, software and systems
purchased from outside vendors and software and systems used by
the Company's third party providers. The Company recognizes that
the Year 2000 issue is one of the most complex data processing
problems faced by businesses worldwide.
State of Readiness. The Company's approach to Year 2000
compliance includes a standard set of methods and tools to
coordinate and drive the project to completion. The approach
consists of six phases:
1. Assessment - Defining each system and process to
determine if there are date dependencies and how to
resolve them.
2. Remediation - Implementing the steps identified in the
assessment phase to repair date errors.
3. Testing - Developing and implementing test scripts to
determine if remediated code is correct.
4. Implementation - Moving all approved changes from
testing into production.
5. Check-Off - Formally acknowledging that each process
has been implemented and is functioning correctly.
6. Clean Management - Employing procedures and practices
to prevent the reintroduction of non-compliant
applications, products and processes into the operating
environment, once Year 2000 compliance has been
achieved.
Testing and remediation of critical systems is underway. The
Company is having its accounting software revised and rewritten
and expects to have the new software installed by the end of the
third quarter of 1999. It is also testing cash registers and
other systems at its restaurants and expects to fix or replace
any Year 2000 noncompliant equipment and systems in the next
several months. The Company believes that there are no material
impediments to its goal of Year 2000 readiness.
The Company has relationships with vendors, customers and other
third parties that rely on software and systems that may not be
Year 2000 compliant. With respect to such third parties, Year
2000 compliance matters will not be within the Company's direct
control. There can be no assurance that Year 2000 compliance
failures by such third parties will not have a material adverse
effect on the Company's results of operations, although the
Company is in contact with these third parties in connection with
its contingency planning.
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) The following exhibits are filed as part of the
report on Form 10-Q, and the list comprises the
Exhibit Index.
Exhibit 11.1
The table below details the number of shares and common stock
equivalents used in the computation of basic and diluted earnings
per share:
Three Months Ended
March 31, 1999 April 1, 1998
Basic:
Weighted average common shares
outstanding used in computing
basic earnings per share 2,386,200 2,277,400
Basic earnings per share $ 0.10 $ 0.07
Diluted:
Weighted average common shares
outstanding 2,386,200 2,277,400
Effects of shares issuable under
stock plans using the treasury
method 10,400 24,100
Effects of warrants issuable using
the treasury method 33,500
Shares used in computing diluted
earnings per share 2,396,600 2,335,000
$ 0.10 $ 0.07
27.01 Financial Data Schedule
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.
FAMILY STEAK HOUSES OF FLORIDA, INC.
(Registrant)
/s/ Lewis E. Christman, Jr.
-------------------------------------
Date: May 14, 1999 Lewis E. Christman, Jr.
President
(Chief Executive Officer)
/s/ Edward B. Alexander
-------------------------------------
Date: May 14, 1999 Edward B. Alexander
Vice President of Finance
(Principal Financial and Accounting
Officer)
Family Steak Houses of Florida, Inc.
Consolidated Statements of Earnings
(Unaudited)
<TABLE>
For The Quarter Ended
-------------------------
<CAPTION> March 31, April 1,
1999 1998
----------- -----------
<C> <C>
<S>
Sales $10,146,400 $9,990,600
Cost and expenses:
Food and beverage 3,942,200 3,867,500
Payroll and benefits 2,824,900 2,765,000
Depreciation and amortization 507,000 438,300
Other operating expenses 1,454,200 1,489,900
General and administrative expenses 581,700 584,400
Franchise fees 304,000 299,600
Loss from disposition of equipment 14,700 41,200
----------- -----------
9,628,700 9,485,900
Earnings from operations 517,700 504,700
Interest and other income 98,500 96,400
Interest expense (382,400) (395,500)
----------- -----------
Earnings before income taxes 233,800 205,600
Provision for income taxes -- 41,000
----------- -----------
Net earnings $233,800 $164,600
=========== ===========
Basic earnings per share $0.10 $0.07
=========== ===========
Diluted earnings per share $0.10 $0.07
=========== ===========
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION> March 31, December 30,
1999 1998
=========== ==========
<C> <C>
<S>
ASSETS
Current assets:
Cash and cash equivalents $3,254,900 $1,910,200
Investments 644,000 644,000
Receivables 124,200 107,000
Current portion of mortgages receivable 72,700 71,100
Income taxes receivable 60,200 60,200
Inventories 268,500 333,400
Prepaid and other current assets 255,500 296,600
----------- -----------
Total current assets 4,680,000 3,422,500
Mortgages receivable 218,800 237,600
Property and equipment:
Land 8,882,300 8,882,100
Buildings and improvements 21,828,200 21,236,600
Equipment 11,898,200 12,528,600
----------- -----------
42,608,700 42,647,300
Accumulated depreciation (16,043,900) (16,509,400)
----------- -----------
Net property and equipment 26,564,800 26,137,900
Property held for resale 1,463,400 1,463,400
Other assets, principally deferred charges,
net of accumulated amortization 821,500 830,700
----------- -----------
$33,748,500 $32,092,100
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,576,900 $1,381,000
Accrued liabilities 2,430,600 2,412,000
Current portion of long-term debt 379,500 370,500
Current portion of obligation under
capital lease 3,200 3,100
----------- -----------
Total current liabilities 4,390,200 4,166,600
Long-term debt 17,764,200 16,574,300
Obligation under capital lease 1,051,900 1,052,700
Deferred revenue 25,200 23,200
----------- -----------
Total liabilities 23,231,500 21,816,800
Shareholders' equity:
Preferred stock of $.01 par;
authorized 10,000,000 shares;
none issued -- --
Common stock of $.01 par;
authorized 4,000,000 shares;
outstanding 2,409,000 in 1999
and 2,371,600 shares in 1998 24,100 23,700
Additional paid-in capital 8,602,200 8,594,700
Retained earnings 1,890,700 1,656,900
----------- -----------
Total shareholders' equity 10,517,000 10,275,300
----------- -----------
$33,748,500 $32,092,100
=========== ===========
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
For the Three Months
==========================
<CAPTION> March 31, April 1,
1999 1998
=========== ===========
<C> <C>
<S>
Operating activities:
Net earnings $233,800 $164,600
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization 507,000 438,300
Directors' fees in the form of stock options 7,500 7,500
Amortization of loan fees 6,900 5,800
Loss on disposition of equipment 14,700 41,200
Decrease (increase) in:
Receivables (17,200) 34,700
Income taxes receivable -- 115,000
Inventories 64,900 24,600
Prepaids and other current assets 41,100 (49,100)
Other assets (35,600) (37,000)
Increase (decrease) in:
Accounts payable 195,900 379,200
Accrued liabilities 18,600 (129,600)
Deferred revenue 2,000 27,300
----------- -----------
Net cash provided by operating activities 1,039,600 1,022,500
----------- -----------
Investing activities:
Proceeds from notes receivable 17,200 75,600
Capital expenditures (910,700) (372,800)
----------- -----------
Net cash used by investing activities (893,500) (297,200)
----------- -----------
Financing activities:
Payments on long-term debt (101,100) (99,900)
Proceeds from issuance of long-term debt 1,300,000 1,290,000
Payments on capital lease (700) (600)
Proceeds from the issuance of common stock 400 305,500
----------- -----------
Net cash provided by financing activities 1,198,600 1,495,000
----------- -----------
Net increase in cash and cash equivalents 1,344,700 2,220,300
Cash and cash equivalents - beginning of period 1,910,200 696,000
----------- -----------
Cash and cash equivalents - end of period $3,254,900 $2,916,300
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the quarter for interest $409,100 $509,100
=========== ===========
Cash paid during the quarter for income taxes -- --
=========== ===========
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This financial data schedule contains summary financial information extracted
from the Company's 1999 Form 10Q for the Quarter ended March 31, 1999 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-29-1999
<PERIOD-END> MAR-31-1999
<CASH> 3254900
<SECURITIES> 644000<F1>
<RECEIVABLES> 124200
<ALLOWANCES> 0
<INVENTORY> 268500
<CURRENT-ASSETS> 4680000
<PP&E> 42608700
<DEPRECIATION> 16043900
<TOTAL-ASSETS> 33748500
<CURRENT-LIABILITIES> 4390200
<BONDS> 17764200
0
0
<COMMON> 24100
<OTHER-SE> 10492900
<TOTAL-LIABILITY-AND-EQUITY> 33748500
<SALES> 10146400
<TOTAL-REVENUES> 10146400
<CGS> 3942200
<TOTAL-COSTS> 9628700
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 382400
<INCOME-PRETAX> 233800
<INCOME-TAX> 0
<INCOME-CONTINUING> 233800
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 233800
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
<FN>
<F1>Represents investments in certificates of deposits with maturities of less than
one year.
</FN>
</TABLE>
