<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934
For the Quarterly Period Ended March 31, 1998
Commission File Number 0-7205
HOLIDAY-GULF HOMES, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-0916277
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4804 Mile Stretch Drive, Holiday, Florida 34690
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (813) 937-3293
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 outstanding of each of the issuer's classes of
common stock, as of March 31, 1998.
Common Stock, $.01 Par Value - 1,903,853 shares as of March 31, 1998.
<PAGE>
INDEX
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
PAGE
PART 1. - FINANCIAL INFORMATION NUMBER
Item 1. Financial Statements: (Unaudited)
Consolidated Balance Sheets - March 31, 1998 and
December 31, 1997........................................... 3-4
Consolidated Statements of Operations - For the three
months ended March 31, 1998 and 1997 and for the
years ended December 31, 1997 and 1996 ...................... 5-6
Consolidated Statements of Shareholders' Equity -
For the year ended December 31, 1997 and the
three months ended March 31, 1998............................ 7
Consolidated Statements of Cash Flows - For the three
months ended March 31, 1998 and 1997......................... 8
Notes to Consolidated Financial Statements..................... 9-15
Accountants' Report............................................ 16
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations..........................17-18
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings............................................. 19
Item 2 Changes in Securities......................................... 19
Item 3 Defaults upon Senior Securities............................... 19
Item 4. Submission of Matters to a Vote of Security Holders........... 19
Item 5. Other Information.............................................19-20
Item 6. Exhibits and Reports on Form 8-K.............................. 20
SIGNATURES 21
<TABLE>
PART 1. FINANCIAL INFORMATION
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
March 31, December 31,
1998 1997
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
WATER, PLANT AND EQUIPMENT
Water Plant & Equipment, at Original Costs $ 307,307 $ 302,023
Less: Accumulated Depreciation (236,232) (234,404)
Less: CIAC, Net of Amortization of $228 in
1998 and $207 in 1997 (1,097) (1,118)
------------ -----------
Net Water Plant & Equipment $ 69,978 $ 66,501
------------ -----------
OTHER PROPERTY AND INVESTMENTS
Non-Utility Property, less Accumulated
Depreciation of $50,548 in 1998 and
$49,700 in 1997 $ 23,316 $ 24,164
------------ -----------
Net Other Property & Investments $ 23,316 $ 24,164
------------ -----------
CURRENT ASSETS
Cash and Certificates of Deposits $ 146,852 $ 129,478
Accounts Receivable 2,376 4,778
Prepaids 1,285 4,089
Other Receivables 3,954 4,549
Deferred Tax Benefit 10,000 10,000
------------ -----------
Total Current Assets $ 164,467 $ 152,894
------------ -----------
OTHER ASSETS
Prepaids $ 890 $ 1,187
Deposits 2,035 2,035
Deferred Tax Benefit 13,600 16,000
------------ -----------
Total Other Assets $ 16,525 $ 19,222
------------ -----------
TOTAL ASSETS $ 274,286 $ 262,781
============ ===========
<FN>
See accompanying notes and accountants' report.
</FN>
</TABLE>
<TABLE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
March 31, December 31,
1998 1997
(Unaudited) (Audited)
<S> <C> <C>
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Capital Stock, 5,000,000 shares authorized
and 1,903,853 shares issued and
outstanding in 1998 and 1997 $ 19,039 $ 19,039
Paid-In-Capital 164,396 164,396
Retained Earnings (of which $10,102 as of
March 31, 1998 and December 31, 1997
was appropriated for unclaimed 1995, 1993
1990, 1989 and 1988 dividends) 68,074 59,528
------------ -----------
Total Shareholders' Equity $ 251,509 $ 242,963
------------ -----------
CURRENT LIABILITIES
Accounts Payable $ 20,620 $ 18,232
Deferred Income 2,157 1,586
------------ -----------
Total Current Liabilities $ 22,777 $ 19,818
------------ -----------
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES $ 274,286 $ 262,781
============ ===========
<FN>
See accompanying notes and accountants' report.
</FN>
</TABLE>
<TABLE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
For the three months ended For the years ended
March 31, December 31,
RESTATED RESTATED
1998 1997 1997 1996
(Unaudited) (Audited)
<S> <C> <C> <C> <C>
OPERATING REVENUES
Water $ 32,636 $ 33,784 $ 136,401 $ 133,874
Garbage 26,284 26,255 107,503 107,345
Streetlights 8,510 8,551 34,799 34,816
Transfer & Reconnect Fees 450 330 2,100 1,635
----------- ----------- ----------- ---------
Total Operating Revenues $ 67,880 $ 68,920 $ 280,803 $ 277,670
----------- ----------- ----------- ---------
COST OF SALES
Garbage $ 13,947 $ 20,920 $ 83,680 $ 83,680
Electric 1,305 1,529 5,898 5,876
Streetlights 3,595 3,625 14,429 14,409
Other Costs 9,981 8,799 33,143 33,349
----------- ----------- ----------- ---------
Total Cost of Sales $ 28,828 $ 34,873 $ 137,150 $ 137,314
----------- ----------- ----------- ---------
Gross Profit $ 39,052 $ 34,047 $ 143,653 $ 140,356
OPERATING EXPENSES
Depreciation & Amortization $ 1,965 $ 1,914 $ 8,119 $ 7,842
General & Administration 27,208 27,935 85,700 81,077
----------- ----------- ----------- ---------
Total Operating Expenses $ 29,173 $ 29,849 $ 93,819 $ 88,919
----------- ----------- ----------- ---------
Operating Income $ 9,879 $ 4,198 $ 49,834 $ 51,437
OTHER INCOME
Rental and Late Fees $ 9,557 $ 9,215 $ 38,303 $ 36,213
Interest 1,201 664 3,379 4,254
----------- ----------- ----------- ---------
Total Other Income $ 10,758 $ 9,879 $ 41,682 $ 40,467
----------- ----------- ----------- ---------
OTHER OPERATING EXPENSES
General and Administrative $ 9,001 $ 8,816 $ 31,313 $ 30,555
Depreciation 690 754 3,066 3,239
----------- ----------- ----------- ---------
Total Other Operating Expenses $ 9,691 $ 9,570 $ 34,379 $ 33,794
----------- ----------- ----------- ---------
<FN>
See accompanying notes and accountants' report.
</FN>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended For the years ended
March 31, December 31,
RESTATED RESTATED
1998 1997 1997 1996
(Unaudited) (Audited)
Other Net Income, on Non-Utility $ 1,067 $ 309 $ 7,303 $ 6,673
----------- ----------- ----------- ---------
Net Income Before Provision
For Income Taxes $ 10,946 $ 4,507 $ 57,137 $ 58,110
----------- ----------- ----------- ---------
Provision For Income Taxes $ 2,400 $ 1,300 $ 11,900 $ 12,018
----------- ----------- ----------- ---------
NET INCOME $ 8,546 $ 3,207 $ 45,237 $ 46,092
=========== =========== =========== =========
EARNINGS PER SHARE $ .004 $ .002 $ .024 $ .024
=========== =========== =========== =========
<FN>
See accompanying notes and accountants' report.
</FN>
</TABLE>
<TABLE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1997 AND THE THREE MONTHS ENDED
MARCH 31, 1998
<CAPTION>
APPROPRIATED UNAPPROPRIATED TOTAL
COMMON STOCK PAID IN RETAINED RETAINED SHAREHOLDERS'
SHARES AMOUNT CAPITAL EARNINGS EARNINGS EQUITY
<S> <C> <C> <C> <C> <C> <C>
Restated
December 31, 1996
(Audited) 1,903,853 $ 19,039 $ 214,352 $ 10,102 $ 49,426 $ 292,919
--------- ---------- --------- ---------- ---------- ---------
Payment of 1997
Dividends (.05 Per
Share) - - (49,956) - (45,237) (95,193)
Net Income - - - - 45,237 45,237
--------- ---------- --------- ---------- ---------- ---------
December 31, 1997
(Audited) 1,903,853 $ 19,039 $ 164,396 $ 10,102 $ 49,426 $ 242,963
--------- ---------- --------- ---------- ---------- ---------
Net Income
(Unaudited) - - - - 8,546 8,546
--------- ---------- --------- ---------- ---------- ---------
March 31, 1998
(Unaudited) 1,903,853 $ 19,039 $ 164,396 $ 10,102 $ 57,972 $ 251,509
========= ========== ========= ========== ========== =========
<FN>
See accompanying notes and accountants' report.
</FN>
</TABLE>
<TABLE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
For the three months ended
March 31,
RESTATED
1998 1997
(Unaudited)
<S> <C> <C>
Cash flows from operating activities
Net Income $ 8,546 $ 3,207
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization 2,655 2,668
Change in assets and liabilities
(Increase) decrease in
Receivables 2,997 3,419
Prepaid Assets 3,101 1,852
Deferred Tax Benefit 2,400 1,300
Increase (decrease) in
Accounts Payable 2,388 (1,988)
Accrued Expenses & Deferred Income 571 712
---------- ----------
Net cash provided by operating activities $ 22,658 $ 11,170
---------- ----------
Cash flows from investing activities
Improvements to Utility Company Equipment $ (5,284) $ (992)
---------- ----------
Net cash used in investing activities $ (5,284) $ (992)
---------- ----------
Cash flows from financing activities
Payment of Dividends $ - $ (95,193)
---------- ----------
Net cash used in financing activities $ - $ (95,193)
---------- ----------
Net increase (decrease) in cash $ 17,374 $ (85,015)
Cash at beginning of period 129,478 168,031
---------- ----------
Cash at end of period $ 146,852 $ 83,016
========== ==========
Supplementary Disclosures of Cash Flow Information
Interest Paid $ -0- $ -0-
Income Tax Paid $ -0- $ -0-
<FN>
See accompanying notes and accountant's report.
</FN>
</TABLE>
<PAGE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(1) - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Organization--
The Company consists of two utility companies and a land development
company. These companies are located in Pasco County, Florida. The utility
companies generate revenues by selling water, garbage and streetlight
services. These companies bill customers on a monthly basis for these
services. The utility companies contract with outside parties to provide
the garbage services. The rates charged by the utility companies are set by
the Florida Public Service Commission.
The land development company owns an office building/warehouse rental
operation. There are no plans in the future to develop anything.
Principles of Consolidation--
The accompanying consolidated financial statements include the accounts
of the Company and its wholly owned subsidiaries. All significant
intercompany balances and transactions have been eliminated in consolidation.
Basis of Presentation--
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of 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 have been included. Operating results for the three month
period ended March 31, 1998 are not necessarily indicative of the results that
may be expected for the year ended December 31, 1998. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's annual report on Form 10-K for the year
ended December 31, 1997.
Recognition of Income from Utility Operations--
The majority of the Company's revenues are generated by two Utility
Companies. These Companies recognize revenues on a monthly basis. The use
is based on actual meter readings by an outside independent contractor. The
independent contractor also provides services for other utility companies in
the area. The independent contractors fees are based on a set amount per
customer plus any additional repairs. Since the meter reading is not done on
the last day of the month, there is some unbilled revenue not recorded.
<PAGE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(1) - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
Depreciation--
Depreciation included in the accompanying financial statements has been
provided by the straight-line method at rates calculated to amortize the cost
of the assets over their estimated useful lives as follows:
YEARS
Utility Plant and Equipment 5 - 40
Building and Improvements 5 - 30
Maintenance and repairs of property and equipment are charged to expense
as incurred, whereas renewals and betterments are capitalized. When
properties are replaced, retired, or otherwise disposed of, the cost and
related accumulated depreciation are removed from the accounts. Any gain or
loss is credited or charged to operations in the year of disposal.
Amortization--
The Contribution in Aide of Construction (CIAC) costs are being
amortized over a period of sixteen years using the straight-line method.
CIAC represents $1,325 received in 1995 from a utility customer to help
pay for the cost of the new asset.
Cash and Cash Equivalents--
For the purpose of the statement of cash flows, cash includes cash on
hand, cash in checking and money market accounts, and Certificates of Deposit.
The company considers all certificates of deposit with a maturity of one year
or less as a current cash or cash equivalent.
Accounts Receivable--
The accounts receivable represent amounts due from customers for monthly
streetlight, garbage and water service. Based on managements review of
accounts receivable, no allowance for doubtful accounts is considered
necessary.
Concentration of Credit Risk--
Management does not believe a credit risk for accounts receivable exists
because the amounts are due from a large number of customers for very small
amounts, and past performance has shown the accounts receivable will be
collected.
<PAGE>
HOLIDAY GULF HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(1) - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (CONTINUED)
Deferred Income--
Deferred income represents monies prepaid by customers which have not
been earned.
Allocation of Dividends--
To the extent dividends were paid in excess of current years earnings
and profits, they have been allocated against paid in capital.
Income Taxes--
The Company and its subsidiaries file consolidated Federal and State
Income Tax Returns.
Deferred income taxes are provided on temporary differences between book
and tax income, arising primarily from the use of different methods of
depreciation, valuing inventory and providing an allowance for doubtful
accounts and notes receivable for financial statement purposes. Deferred
income tax benefits are recognized for operating losses, if available, to
offset future federal income taxes. An allowance is provided if it is more
likely than not that the Company will not realize the benefits of a deferred
tax asset.
Earnings Per Share--
Earnings per share of Common Stock is computed based upon weighted
average number of shares outstanding for the period (1,903,853 shares in 1997
and for the first three months of 1998).
(2) - LONG-TERM DEBT:
There was no debt as of March 31, 1998 or December 31, 1997.
(3) - STOCK OPTION PLAN:
The Company has adopted a qualified stock option plan whereby options
may be granted to key employees to purchase a maximum 50,000 shares of the
Company's common stock at not less than 10% of the fair market value of the
shares at date of grant. The options are exercisable in installments of not
more than 20% of the shares covered thereby during any one-year period,
subject to the right of cumulation. The options expire five years from the
date of grant. No options have been granted under this plan.
<PAGE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(4) - PROPERTY AND EQUIPMENT:
The property and equipment accounts consisted of the following at March
31, 1998 and December 31, 1997:
March 31, December 31,
1998 1997
Land, Buildings, Office Equipment
and Furniture $ 73,864 $ 73,864
Water, Plant and Equipment 307,307 302,023
CIAC, Net of Amortization (1,097) (1,118)
------------ -----------
Total Property and Equipment $ 380,074 $ 374,769
Less: Accumulated Depreciation (286,780) (284,104)
------------ -----------
Net Property and Equipment $ 93,294 $ 90,665
============ ===========
(5) - RELATED PARTY TRANSACTIONS:
There were no related party transactions during the three months ended
March 31, 1998 and 1997.
(6) - LEASE AND LEASE COMMITMENTS:
The Company is leasing office space in Knollwood Plaza under a three-
year lease expiring in October, 1999. The lease is $450 per month. The rent
paid as of March 31, 1998 and 1997 was $1,350, respectively.
The following is a schedule of future minimum lease payments:
December 31, 1998 $ 4,050
December 31, 1999 4,500
--------
Total $ 8,550
========
The Company owns an office/warehouse rental facility consisting of three
tenants. Two have month to month leases. The other lease is a five-year lease
which was renewed in June, 1995.
<PAGE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(6) - LEASES AND LEASE COMMITMENTS: (CONTINUED)
The minimum payments under this lease are as follows:
1998 $ 25,706
1999 35,420
2000 18,060
2001 -0-
2002 and thereafter -0-
--------
Total Due $ 79,186
========
The rental real estate held for lease is located in New Port Richey
Florida. The companies investment in this rental property is as follows at
March 31, 1998:
Warehouse and Office Building $ 29,323
Improvements 41,014
--------
$ 70,337
Less: Accumulated Depreciation 49,208
--------
$ 21,129
========
(7) - INCOME TAXES:
Deferred income taxes (benefits) are provided for certain income and
expenses which are recognized in different periods for tax and financial
reporting purposes. Sources of temporary differences and the resulting tax
assets and liabilities are as follows:
March 31, December 31,
1998 1997
Net Operating Loss Carryforwards $ 231,423 $ 243,831
--------- ----------
Applicable Tax Rate
(15% Federal, 5.5% State) $ 45,500 $ 49,700
Valuation Allowance (21,900) (23,700)
--------- ----------
Amount Per Balance Sheet $ 23,600 $ 26,000
========= ==========
<PAGE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(7) - INCOME TAXES: (CONTINUED)
The provision (benefit) for income taxes consist of the following:
March 31, December 31,
1998 1997
Current $ -0- $ -0-
Deferred $ 2,400 $ 11,900
Income Tax Expense Consisted of the following:
March 31, December 31,
1998 1997
Provision for income taxes:
Federal Income Tax $ 1,800 $ 9,000
State Income Tax 600 2,900
--------- ---------
$ 2,400 $ 11,900
========= =========
The reconciliation of income tax computed at the U.S. federal statutory
tax rates (34%) to income tax expense for the three months ended March 31,
1998 and the year ended December 31, 1997 is:
March 31, 1998 December 31, 1997
AMOUNT PERCENT AMOUNT PERCENT
Tax at U.S.
Statutory Rates $ 3,722 34.00 $ 19,427 34.00
Surtax exemption (2,215) (20.23) (10,829) (18.95)
State income tax-
net of federal
tax benefits 396 3.62 2,900 5.08
Permanent differences
and other 497 4.54 402 .70
-------- ------ -------- ------
$ 2,400 21.93 $ 11,900 20.83
======== ====== ======== ======
<PAGE>
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(7) - INCOME TAXES: (CONTINUED)
Operating Loss Carryforwards--
The Company has loss carryforwards at December 31, 1997 totaling
$243,831 that may be offset against future taxable income. If not used, the
carryforward will expire as follows:
Year Year
Originated Expired
1983 1998 $ 44,522
1984 1999 171,592
1991 2006 27,717
----------
$ 243,831
==========
(8) - PRIOR PERIOD ADJUSTMENT FOR CHANGE IN ACCOUNTING FOR INCOME TAXES:
March 31, December 31,
1997 1997
Net Income as Previously Reported $ 4,507 $ 58,110
Adjustment for Deferred Tax Benefit (1,300) (12,018)
-------- ----------
Net Income as Adjusted $ 3,207 $ 46,092
======== ==========
Earnings Per Share Amounts:
As Previously Reported .003 .031
Effect of Retroactive Change (.001) (.007)
-------- ----------
As Adjusted .002 .024
======== ==========
(9) - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS:
The carrying value of cash and cash equivalents approximate fair values.
<PAGE>
<REVIEW-REPORT>
ACCOUNTANTS' REPORT
To the Board of Directors
Holiday Gulf Homes, Inc. and Subsidiaries
Holiday, Florida
We have reviewed the accompanying consolidated condensed balance sheets
of Holiday Gulf Homes, Inc. (a Minnesota corporation) and subsidiaries as of
March 31, 1998 and the related consolidated condensed statements of operations
for the three months then ended March 31, 1998 and 1997, and the consolidated
condensed statements of shareholders' equity for the period ended March 31,
1998 and the consolidated condensed statement of cash flows for the three
month periods ended March 31, 1998 and 1997. These consolidated condensed
financial statements are the responsibility of the management of Holiday Gulf
Homes, Inc..
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the consolidated
condensed financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying March 31, 1998 consolidated condensed
financial statements in order for them to be in conformity with generally
accepted accounting principles.
The financial statements for the year ended December 31, 1997, were
audited by us, and we expressed an unqualified opinion on them in our report
dated January 9, 1998, but we have not performed any auditing procedures since
that date.
ARNOLD AND CO., P.A.
Ocala, Florida
May 12, 1998
</REVIEW-REPORT>
<PAGE>
HOLIDAY GULF HOMES, INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations:
RESULTS OF OPERATIONS:
Utility operating revenues decreased 1.53% in the first quarter of 1998
to $67,880 down $1,040 over the first quarter of 1997. For the year ended
December 31, 1997 utility operating revenues of $280,803 were $3,133 or 1.13%
higher than the year ended December 31, 1996. The year end increase in
revenues is due primarily to rate increases in water revenues.
The gross profit percentages for the first quarter of 1998 increased
due to a change in garbage collection service providing one month free, and
year ended December 31, 1997 compared to the prior year were maintained due
to the stability in the number of customers.
General and administrative expenses have remained stable, due to
management controlling costs, as a percentage of utility revenues. General and
administrative expenses as a percentage of utility revenues were approximately
40.08% and 30.52% for the three month period ended March 31, 1998 and the year
ended December 31, 1997 as compared to 40.53% and 29.20% for the comparable
periods of 1997 and 1996.
Income from other operations increased 8.90% in the first quarter of
1998 to $ 10,758, up $879 over the first quarter of 1997. For the year ended
December 31, 1997 income from other operations of $41,682 was $1,215, or 3.00%
higher than the same period in 1996. The increase in revenues is due
primarily to increases in rental income.
General and administrative expenses from other operations have
decreased as a percentage of income from other operations due to an increase
in interest income for the first quarter. The year end revenues and expenses
were stable. General and administrative expenses from other operations as a
percentage of income from other operations were approximately 83.67% and
75.12% for the three month period ended March 31, 1998 and the year ended
December 31, 1997 as compared to 89.24% and 75.51% for the comparable period
of 1997 and 1996.
Net income increased 166.48% in the first quarter of 1998 to $8,546
up $5,339 over the first quarter of 1997. For the year ended December 31,
1997, net income of $45,237 was $855 or 1.85% lower than the same period in
1996.
<PAGE>
HOLIDAY GULF HOMES, INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations: (Continued)
LIQUIDITY AND SOURCES OF CAPITAL:
The Company does not anticipate any material capital expenditures in
the near future for the utility companies, therefore, there should not be any
liquidity problem.
<PAGE>
PART II. OTHER INFORMATION
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
Item 1. Legal Proceedings.
There were no reportable events for the quarter ended March 31,
1998 nor have there been any material developments during the quarter.
Item 2. Changes in Securities.
The rights of the holders of registered securities have not been
materially modified, limited or qualified by the issuance or modification of
any class of securities.
There are no working capital restrictions or other limitations
upon payment of dividends.
Item 3. Defaults upon Senior Securities.
There have been no defaults in the payment of principal, interest
or any other material liabilities.
Item 4. Submission of Matters to a Vote of Security Holders.
(a) Annual Meeting of stockholders was held on June 28, 1997.
(b) Elected directors and executive officers were:
Linda Emerick - President and Director
Thomas L. Burkett - Vice President and Director
Ronnie L. Mohr - Secretary and Director
Eileen Falla - Treasurer
(c) Other matters voted upon and the number of affirmative votes and
negative votes cast with respect to each such matter.
None
Item 5. Other Information.
The Company declared and distributed a dividend of $.05 per share
in January, 1997. The declared dividend required the use of $95,193 cash.
<PAGE>
PART II. OTHER INFORMATION, CONTINUED
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
Item 6. Exhibits and Reports on Form 8-K.
DESCRIPTION
(a) Exhibits Ex-27
(b) Report on Form 8-K None
<PAGE>
SIGNATURES
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
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.
HOLIDAY-GULF HOMES, INC.
(Registrant)
DATE: March 15, 1998 ___________________________________
LINDA EMERICK, PRESIDENT -
PRINCIPAL FINANCIAL OFFICER
<TABLE> <S> <C>
<ARTICLE> UT
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 69,978
<OTHER-PROPERTY-AND-INVEST> 23,316
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0
0
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0
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0
<EARNINGS-AVAILABLE-FOR-COMM> 8,546
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</TABLE>
