<PAGE>
FORM-10Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[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
[_] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
--------------------- ---------------------------
Commission file number 33-15932
-------------------------
SOUTHMARK SAN JUAN, INC.
- - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 71-2132723
- - ------------------------------------------ ---------------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
ISLA VERDE AVENUE, CAROLINA, PUERTO RICO 00979
- - ------------------------------------------ ---------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (809) 791-6100
---------------------------
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 X NO
------ ------
Indicate the number of shares of each of the issuer's classes of common
stock, as of the latest practicable date.
Class Outstanding at May 7, 1996
------------------------------------ ---------------------------
COMMON STOCK, $0.001 PAR VALUE 262,680 SHARES
1
<PAGE>
PART I: FINANCIAL INFORMATION
Introductory Note to Financial Statements
- - -----------------------------------------
The financial statements as of March 31, 1996, and for the three and nine
months ended March 31, 1996 and 1995 have been prepared by Southmark San Juan,
Inc. (the "Company") without audit, pursuant to the rules and regulations of the
Securities and Exchanges Commission. In the opinion of management, these
financial statements contain all adjustments (consisting of only normal
recurring adjustments) necessary to present fairly the financial position of the
Company as of March 31, 1996, results of its operations for the three and nine
months ended March 31, 1996 and 1995 and its cash flows for the nine months
ended March 31, 1996 and 1995.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. These financial statements should be read in
conjunction with the financial statements and notes thereto included in the
Company's 1995 Annual Report on Form 10-K.
The Company's principal operating asset is the Sands Hotel and Casino
located in San Juan, Puerto Rico (the "Sands San Juan"). Historically, the
Sands San Juan's operations have been highly seasonal in nature, with peak
activity occurring from December to April; consequently, the results of
operations for the three and nine month periods ending March 31 are not
necessarily indicative of the operating results for a full year.
2
<PAGE>
SOUTHMARK SAN JUAN, INC.
BALANCE SHEETS
ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1996 1995
------------- -------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 2,454,000 $ 3,382,000
Accounts receivable, net of allowance for uncollectible
accounts of $312,000 and $228,000, respectively 1,998,000 1,510,000
Inventories 515,000 579,000
Prepaid expenses 797,000 326,000
------------ ------------
Total current assets 5,764,000 5,797,000
------------ ------------
Property and equipment:
Land 4,543,000 4,543,000
Buildings 33,682,000 33,682,000
Furniture and equipment 9,620,000 8,722,000
------------ ------------
47,845,000 46,947,000
Less - accumulated depreciation (17,812,000) (16,584,000)
------------ ------------
Net property and equipment 30,033,000 30,363,000
------------ ------------
Total assets $ 35,797,000 $ 36,160,000
============ ============
</TABLE>
The accompanying introductory notes and notes to financial statements
are an integral part of these balance sheets.
3
<PAGE>
SOUTHMARK SAN JUAN, INC.
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' DEFICIT
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1996 1995
------------- -------------
<S> <C> <C>
Current liabilities:
Accounts payable $ 1,951,000 $ 1,399,000
Accrued interest 2,460,000 2,436,000
Accrued liabilities 2,184,000 2,369,000
------------ ------------
Total current liabilities 6,595,000 6,204,000
------------ ------------
Long term liabilities:
Senior secured industrial revenue bonds, 1992 series A:
Class A, maturing December 1, 1997 11,727,000 11,727,000
Class B, maturing December 1, 1997 through 2001 19,257,000 19,257,000
Senior secured PIK bonds 1,628,000 988,000
Accrued interest converted to PIK bonds - 639,000
Term note 3,000,000 3,000,000
Deferred incentive fees 1,379,000 1,061,000
------------ ------------
Total long term liabilities 36,990,000 36,672,000
------------ ------------
Shareholders' deficit:
Common stock, $0.001 par value per share;
992,000 shares authorized; 262,680 shares
issued and outstanding - -
Additional paid-in capital 27,763,000 27,763,000
Accumulated deficit (35,551,000) (34,479,000)
------------ ------------
Total shareholders' deficit (7,788,000) (6,716,000)
------------ ------------
$ 35,797,000 $ 36,160,000
============ ============
</TABLE>
The accompanying introductory notes and notes to financial statements
are an integral part of these balance sheets.
4
<PAGE>
SOUTHMARK SAN JUAN, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------
1996 1995
---------- ----------
<S> <C> <C>
Revenues:
Rooms $4,899,000 $5,300,000
Casino 1,485,000 1,589,000
Food and beverage 1,601,000 1,364,000
Other 516,000 461,000
---------- ----------
8,501,000 8,714,000
Less - promotional allowances (237,000) (216,000)
---------- ----------
Net revenues 8,264,000 8,498,000
---------- ----------
Departmental Expenses:
Rooms 1,172,000 1,151,000
Casino 897,000 912,000
Food and beverage 1,262,000 1,135,000
Other 242,000 193,000
Depreciation 436,000 459,000
Interest 723,000 709,000
General and administrative 2,876,000 2,809,000
---------- ----------
Total expenses 7,608,000 7,368,000
---------- ----------
Net income $ 656,000 $1,130,000
========== ==========
Net income per common and common equivalent share $ 2.50 $ 4.30
========== ==========
Weighed average number of common and
common equivalent shares outstanding 992,000 992,000
========== ==========
</TABLE>
The accompanying introductory notes and notes to financial statements
are an integral part of these statements.
5
<PAGE>
SOUTHMARK SAN JUAN, INC.
STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
-------------------------
1996 1995
----------- -----------
<S> <C> <C>
Revenues:
Rooms $11,236,000 $11,714,000
Casino 3,614,000 3,910,000
Food and beverage 4,422,000 3,438,000
Other 1,213,000 1,115,000
----------- -----------
20,485,000 20,177,000
Less - promotional allowances (596,000) (559,000)
----------- -----------
Net revenues 19,889,000 19,618,000
----------- -----------
Departmental Expenses:
Rooms 3,033,000 3,047,000
Casino 2,571,000 2,597,000
Food and beverage 3,501,000 3,012,000
Other 599,000 523,000
Depreciation 1,228,000 1,371,000
Interest 2,170,000 2,127,000
General and administrative 7,859,000 7,621,000
----------- -----------
Total expenses 20,961,000 20,298,000
----------- -----------
Net loss $(1,072,000) $ (680,000)
=========== ===========
Net loss per common share $(4.08) $(2.59)
=========== ===========
Weighed average number of common outstanding shares 262,680 262,680
=========== ===========
</TABLE>
The accompanying introductory notes and notes to financial statements
are an integral part of these statements.
6
<PAGE>
SOUTHMARK SAN JUAN, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
-------------------------
1996 1995
----------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(1,072,000) $ (680,000)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation and amortization 1,228,000 1,371,000
Provision for doubtful accounts 51,000 33,000
Increase in accounts receivable (860,000) (343,000)
Increase in inventories, prepaid expenses and
other current assets (403,000) (330,000)
Increase in accounts payable, accrued
liabilities, and other liabilities 1,027,000 900,000
----------- ----------
Net cash (used in) provided by operating activities (29,000) 951,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net (899,000) (372,000)
----------- ----------
(Decrease) increase in cash and cash equivalents (928,000) 579,000
Cash and cash equivalents, beginning of period 3,382,000 2,723,000
----------- ----------
Cash and cash equivalents, end of period $ 2,454,000 $3,302,000
=========== ==========
</TABLE>
The accompanying introductory notes and notes to financial statements
are an integral part of these statements.
7
<PAGE>
SOUTHMARK SAN JUAN, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION
Southmark San Juan, Inc. (the"Company"), a Delaware corporation, was
incorporated during April 1986 for the purpose of acquiring and renovating the
Sands Hotel and Casino in San Juan, Puerto Rico, (the "Sands San Juan"). The
Company's outstanding Common Shares are owned by Southmark Corporation
("Southmark"), (48.2%); SJPR Management, Inc. ("SJPR"), (46.3%); and bondholders
who have exercised warrants, (5.5%). SJPR is a wholly owned subsidiary of Pratt
Hotel Corporation ("Pratt"). The operations of the Sands San Juan are managed
by SJPR, Inc., also a wholly owned subsidiary of Pratt.
NOTE 2 - SENIOR SECURED INDUSTRIAL REVENUE BONDS, 1992 SERIES A
On December 1, 1992, the Company entered into a loan agreement with
the Puerto Rico Industrial, Medical, Educational and Environmental Pollution
Control Facilities Financing Authority ("AFICA") for the issuance of $31,000,000
principal amount of Senior Secured Industrial Revenue Bonds, 1992 Series A
(the"Senior Secured Bonds") which, together with warrants to acquire from
496,000 shares to 744,000 shares of the Company's Common Stock, replaced
previously issued Industrial Revenue Bonds, 1987 Series A (the"Old Bonds") in
the principal amount of $38,000,000 and related accrued interest of $7,836,000.
The Senior Secured Bonds are secured by a first mortgage on the Sands San Juan
and consist of $11,727,000 principal amount of Class A Bonds which mature on
December 1, 1997 and $19,257,000 principal amount of Class B bonds which require
principal payments of 10% of the outstanding balance annually, beginning
December 1, 1997 with the balance due December 1, 2001.
The Senior Secured Bonds bear interest at 8.5% of which 6.5% must be
paid annually in cash. The remaining 2.0% must be paid in cash to the extent
there exists Available Cash, as defined in the Trust Agreement. In the event
that Available Cash is insufficient to pay all or a portion of the 2.0% interest
annually, the insufficiency will be paid by the issuance of Senior Secured PIK
Bonds which bear interest at the same rate and terms and are secured by the same
collateral as the Senior Secured Bonds. The Company incurred $693,000 and
$2,080,000 of interest expense on the Senior Secured Bonds and Senior Secured
PIK Bonds during the three and nine month periods ended March 31, 1996,
respectively.
Interest is payable semi-annually on July 31 and January 31. No interest
payments were made on January 31, 1996 or 1995, based upon the Available Cash
restrictions, as defined in the Trust Agreement. The Company made the mandatory
interest payment of $2,078,000 due on July 31, 1995, but did not have sufficient
Available Cash to satisfy the remaining 2% of bond interest due and accordingly
was obliged to issue Senior Secured PIK Bonds in the amounts of $639,000 at July
31, 1995. The related accrued interest converted into Senior Secured PIK Bonds
has been classified as accrued interest as of June 30, 1995 under long-term
liabilities on the accompanying balance sheet.
On December 1, 1992, warrants to acquire 496,000 shares of Common Stock
were issued to holders of the Senior Secured Bonds and warrants to acquire
248,000 shares of Common Stock (the"Escrowed Warrants") were escrowed with the
trustee for the Senior Secured Bonds.
8
<PAGE>
SOUTHMARK SAN JUAN, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SENIOR SECURED INDUSTRIAL REVENUE BONDS, 1992 SERIES A (CONTINUED)
On June 1, 1996, holders of the Senior Secured Bonds will receive Escrowed
Warrants to acquire, in the aggregate, an additional 99,200 shares of Common
Stock, unless a Redemption, as defined, has occurred with respect to all Senior
Secured Bonds, Senior Secured PIK Bonds and the Warrants.
On June 1, 1997, holders of the Senior Secured Bonds will receive Escrowed
Warrants to acquire, in the aggregate, an additional 148,800 shares of Common
Stock, unless a Redemption has occurred with respect to all Senior Secured
Bonds, Senior PIK Bonds, and the Warrants.
NOTE 3 - TERM NOTE
On December 1, 1992, the Company executed a $3,000,000 Term Note with a
Puerto Rico bank, secured by a second mortgage on the Sands San Juan and
maturing on November 1, 1999, in exchange for a note payable in the principal
amount of $4,980,000 and related accrued interest of $692,000. The Term Note
bears interest initially at 3%, increasing to 6% effective November 1, 1997. The
company incurred $30,000 and $90,000 of interest expense, respectively, on the
Term Note during the three and nine month periods ended March 31, 1996.
Accrued interest is payable semi-annually commencing July 31, 1993, to
the extent there is Available Cash remaining after payment of interest on the
Senior Secured Bonds and redemption of any outstanding Senior Secured PIK Bonds.
Available Cash, if any, remaining after payment of all accrued interest on the
Term Note must be used for redemption of the Senior Secured Bonds previously
described. No interest payments have been made on the Term Note due to the
Available Cash restrictions relating to the Senior Secured Bonds (Note 2).
NOTE 4 - INCOME TAXES
The Company has qualified for exemption from taxation by the Commonwealth
of Puerto Rico under the Tourism Incentive Act of 1983 (as amended). As a
result, for the first five years of operations, the Company is exempt from 90%
of Puerto Rico income and property taxes attributable to its hotel operations
(reducing to a 75% exemption for the second five year period) and 100% of
municipal and excise taxes on its exempt functions. Income from casino
operations is not exempt from taxation.
The ten year tax exemption grant was effective beginning January 1, 1987,
except with respect to income tax, for which the Company has not elected an
effective date.
The Company's hotel and casino operations have incurred losses since
inception, accordingly, no income taxes have been provided for the three and
nine month periods ended March 31, 1996 or 1995.
NOTE 5 - NET INCOME (LOSS) PER COMMON SHARE
Net income per common and common equivalent share is calculated using the
weighted average number of common shares outstanding and the additional number
of shares which would be issuable upon the exercise of common stock warrants.
Shares issuable upon the exercise of common stock warrants have not been
considered in the calculation of net loss per share since the effect would be
anti-dilutive.
9
<PAGE>
SOUTHMARK SAN JUAN, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- - -------------------------------
The Company's primary source of liquidity and of capital resources to
meet its debt service obligations and fund capital expenditures is cash flow
generated from operations of the Sands San Juan. Historically, the Sands San
Juan's cash flow results have been highly seasonal in nature, with peak activity
occurring from January to June; consequently, the results for the nine months
ended March 31, 1996 are not necessarily indicative of the cash flow results for
a full year. During the first nine months of fiscal 1996, the Company funded
capital additions of $899,000 and paid mandatory interest of $2,078,000 accrued
on the Senior Secured Bonds from existing cash at June 30, 1995 and cash flow
generated by operations.
The Plan provides that Senior Secured PIK Bonds may be issued for annual
bond interest up to a maximum of 2% in the event that Available Cash is
insufficient to pay such interest in cash. The Company did not generate
sufficient Available Cash to require cash payment of the remaining 2% of bond
interest due. Accordingly, the Company issued Senior Secured PIK Bonds in the
amount of $639,000 as payment in kind of the remaining bond interest on July 31,
1995. In addition, at July 31, 1995 no interest payment was made to the Term
Note holder based upon Available Cash restrictions.
Operating results for the nine months ended March 31, 1996 reflect a
decrease of $392,000 (57.6%) over the prior year. Operating results for the
last quarter of fiscal year 1996 are expected to be comparable with results for
the fourth quarter of the prior year. Management believes that in spite of a
reduction in cash flow generated from operations it should be able to meet its
operating requirements and mandatory debt service obligations during fiscal year
1996.
RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
Hotel Operations
- - ----------------
Room revenues $ 4,899,000 $ 5,300,000
Occupancy 71.5% 82.2%
Average daily rate $ 181.94 $ 172.72
Departmental expenses $ 1,172,000 $ 1,151,000
Operating margin 76.1% 78.3%
</TABLE>
10
<PAGE>
SOUTHMARK SAN JUAN, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
--------------------------
1996 1995
----------- ------------
<S> <C> <C>
Hotel Operations
- - ----------------
Room revenues $11,236,000 $11,714,000
Occupancy 66.8% 74.1%
Average daily rate $ 147.57 $ 139.21
Departmental expenses $ 3,033,000 $ 3,047,000
Operating margin 73.0% 74.0%
</TABLE>
Rooms revenue decreased by $401,000 (7.6%) and $478,000 (4.1%),
respectively, for the three and nine months ended March 31, 1996, versus the
same periods ended March 31, 1995 primarily due to management's decision to
forego contracts with airlines for crew rooms, which had an average daily rate
of $76 in fiscal 1995, to pursue other market segments which generate higher
average daily rates. In addition, during the three month period ended March 31,
1995 there were two major conventions hosted at the Hotel, the Steigenberger
German reservation service convention and the Billy Graham crusade which
generated over 3,000 room nights. There were no convention groups of comparable
size hosted during the third quarter of fiscal 1996.
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-------------------------
1996 1995
----------- ----------
<S> <C> <C>
Food and Beverage Operations
- - ------------------------------
Food and beverage revenues $1,601,000 $1,364,000
Departmental expenses $1,262,000 $1,135,000
Operating margin 21.2% 16.8%
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
Food and Beverage Operations
- - ----------------------------
Food and beverage revenues $4,422,000 $3,438,000
Departmental expenses $3,501,000 $3,012,000
Operating margin 20.8% 12.4%
</TABLE>
Revenues increased by $237,000 (17.4%) and $984,000 (28.6%),
respectively, for the three and nine months periods ending March 31, 1996,
versus the same periods ended March 31, 1995 primarily due to the
11
<PAGE>
SOUTHMARK SAN JUAN, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
addition of several live entertainment acts, our increase in sales of modified
American Plan Packages and increased catering revenues.
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-------------------------------
1996 1995
----------- -------------
<S> <C> <C>
Casino Operations
- - -----------------
Table games:
Gross wagering $ 5,807,000 $ 5,790,000
Win Percentage 17.8% 20.1%
Revenues $ 1,035,000 $ 1,162,000
Slot machine revenues $ 450,000 $ 427,000
Departmental expenses $ 897,000 $ 912,000
Promotional allowances $ 237,000 $ 216,000
Operating margin 39.6% 42.6%
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
-------------------------------
1996 1995
----------- -------------
<S> <C> <C>
Casino Operations
- - ------------------------
Table games:
Gross wagering $13,279,000 $14,116,000
Win Percentage 17.6% 18.9%
Revenues $ 2,338,000 $ 2,673,000
Slot machine revenues $ 1,276,000 $ 1,237,000
Departmental expenses $ 2,571,000 $ 2,597,000
Promotional allowances $ 596,000 $ 559,000
Operating margin 28.9% 33.6%
</TABLE>
Gross wagering decreased $837,000 (5.9%), respectively, for the nine
month period ended March 31, 1996, versus the same period ended March 31, 1995.
The decrease in gross wagering for the nine month period was primarily due to
the opening of an additional major hotel/casino facility in October 1995 and the
previously discussed decline in hotel occupancy.
Promotional allowances represent the retail value of complimentary goods
and services provided to casino customers under various marketing programs. Such
allowances increased by $37,000 (6.6%) for the nine month period ended March 31,
1996, as compared to the same period of 1995, primarily due to additional player
reinvestment costs.
12
<PAGE>
SOUTHMARK SAN JUAN, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
------------------------------
1996 1995
----------- -----------
<S> <C> <C>
Other Expenses
- - --------------
Depreciation $1,228,000 $1,371,000
Interest $2,170,000 $2,127,000
General and administrative $7,859,000 $7,621,000
</TABLE>
Depreciation expenses decreased by $143,000 (10.4%) for the nine month
period ended March 31, 1996, as compared to the same period in 1995 due to
certain assets becoming fully depreciated.
13
<PAGE>
SOUTHMARK SAN JUAN, INC.
PART II: OTHER INFORMATION
ITEM 6 REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the quarter.
14
<PAGE>
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.
SOUTHMARK SAN JUAN, INC.
--------------------------------------
Registrant
Date: May 13, 1996 By: /s/ John C. Hull
----------------------- -----------------------------------
John C. Hull
Vice President and
Chief Financial Officer
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF SOUTHMARK SAN JUAN, INC. AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> JUN-30-1996 JUN-30-1996
<PERIOD-START> JAN-01-1996 JUL-01-1996
<PERIOD-END> MAR-31-1996 MAR-31-1996
<CASH> 2,454 2,454
<SECURITIES> 0 0
<RECEIVABLES> 2,310 2,310
<ALLOWANCES> 312 312
<INVENTORY> 515 515
<CURRENT-ASSETS> 5,764 5,764
<PP&E> 47,845 47,845
<DEPRECIATION> 17,812 17,812
<TOTAL-ASSETS> 35,797 35,797
<CURRENT-LIABILITIES> 6,595 6,595
<BONDS> 35,612 35,612
0 0
0 0
<COMMON> 0 0
<OTHER-SE> (7,788) (7,788)
<TOTAL-LIABILITY-AND-EQUITY> 35,797 35,797
<SALES> 0 0
<TOTAL-REVENUES> 8,264 19,889
<CGS> 0 0
<TOTAL-COSTS> 3,549 9,653
<OTHER-EXPENSES> 3,312 9,087
<LOSS-PROVISION> 24 51
<INTEREST-EXPENSE> 723 2,170
<INCOME-PRETAX> 656 (1,072)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 656 (1,072)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 656 (1,072)
<EPS-PRIMARY> 2.50 (4.08)
<EPS-DILUTED> 0 0
</TABLE>
