<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1998
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 1-10012
SUNSHINE MINING AND REFINING COMPANY
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 75-2618333
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
877 W. Main, Suite 600, Boise, Idaho 83702
- --------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number including area code (208) 345-0660
----------------
- --------------------------------------------------------------------------------
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
--- ---
<TABLE>
<CAPTION>
Number of Shares Outstanding
Title of Each Class of Common Stock at November 12, 1998
- ----------------------------------- --------------------
<S> <C>
Common Stock, $.01 par value 257,908,193
</TABLE>
<PAGE> 2
SUNSHINE MINING AND REFINING COMPANY
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
September 30 December 31
1998 1997
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash investments $ 2,459 $ 15,985
Silver bullion 6,977 7,739
Accounts receivable 4,476 2,801
Inventories (Note 2) 3,856 3,627
Other current assets 1,439 1,739
------------ ------------
Total current assets 19,207 31,891
Property, plant and equipment, net 18,226 65,465
Investments and other assets 4,877 4,245
------------ ------------
Total assets $ 42,310 $ 101,601
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,406 $ 1,351
Accrued expenses 3,288 3,581
------------ ------------
Total current liabilities 5,694 4,932
Long-term debt 42,166 42,265
Accrued pension and other postretirement benefits 5,532 5,672
Other long-term liabilities and deferred credits 4,060 4,236
Stockholders' equity:
Common stock--$.01 par value;
600,000 shares authorized; shares issued:
September 30, 1998 - 261,395
December 31, 1997 - 259,818 2,614 2,598
Paid-in capital 712,544 711,192
Deficit (729,190) (668,155)
------------ ------------
(14,032) 45,635
Less treasury stock, at cost:
September 30, 1998 - 4,563 shares
December 31, 1997 - 4,586 shares 1,110 1,139
------------ ------------
(15,142) 44,496
------------ ------------
Total liabilities and stockholders' equity $ 42,310 $ 101,601
============ ============
</TABLE>
See accompanying notes.
2
<PAGE> 3
SUNSHINE MINING AND REFINING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September September
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Operating revenues $ 8,484 $ 7,626 $ 26,479 $ 17,677
Mark to market gain (writedown) (906) 1,000 (1,571) 814
----------- ----------- ----------- -----------
7,578 8,626 24,908 18,491
----------- ----------- ----------- -----------
Costs and expenses:
Cost of revenues (7,130) (6,590) (21,535) (17,293)
Depreciation, depletion
and amortization (1,598) (1,540) (4,493) (4,063)
Impairment of mining properties (50,425) -- (50,425) --
Other income (expense)
Exploration (1,210) (1,290) (3,791) (5,700)
Selling, general and
administrative expense (1,202) (1,259) (3,793) (4,100)
Interest income 120 66 506 475
Interest and debt expense (1,732) (1,382) (5,142) (4,125)
Other, net 1,105 41 2,731 73
----------- ----------- ----------- -----------
(2,919) (3,824) (9,489) (13,377)
----------- ----------- ----------- -----------
Net Income (loss) $ (54,494) $ (3,328) $ (61,034) $ (16,242)
=========== =========== =========== ===========
Basic and fully diluted income (loss)
per common share: $ (0.21) $ (0.01) $ (0.24) $ (0.06)
Weighted average common shares outstanding 256,832 255,112 256,432 255,112
=========== =========== =========== ===========
</TABLE>
See accompanying notes.
3
<PAGE> 4
SUNSHINE MINING AND REFINING COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
1998 1997
---------- ----------
<S> <C> <C>
Cash used by operating activities:
Net Income $ (61,034) $ (16,242)
Adjustments to reconcile net loss
to net cash used by operations:
Depreciation, depletion and amortization 4,493 4,063
Impairment of mining properties 50,425 --
Amortization of debt issuance costs and accretion of debt discount 1,668 1,614
Net (increase) decrease in:
Silver bullion 762 (695)
Accounts receivable (1,675) (298)
Inventories (229) 393
Other assets and deferred charges (2,481) (4)
Net increase (decrease) in:
Accounts payable and accrued expenses 769 (839)
Accrued pension and other postretirement benefits (140) (115)
Other liabilities and deferred credits (147) (649)
---------- ----------
Net cash used by operations (7,589) (12,772)
---------- ----------
Cash provided (used) by investing activities:
Additions to property, plant and equipment (7,755) (1,458)
Proceeds from investments 1,776 1,162
---------- ----------
Net cash used by investing activities (5,979) (296)
---------- ----------
Cash provided (used) by financing activities:
Proceeds from issuance of common stock upon exercise
of stock options and warrants 48 --
Debt issuance costs (6) (240)
---------- ----------
Net cash provided (used) by financing activities 42 (240)
---------- ----------
Increase (decrease) in cash and cash investments (13,526) (13,308)
Cash and cash investments, January 1 15,985 16,317
---------- ----------
Cash and cash investments, September 30 $ 2,459 $ 3,009
========== ==========
Supplemental cash flow information -
Interest paid in cash $ 3,086 $ 2,112
========== ==========
</TABLE>
See accompanying notes.
4
<PAGE> 5
SUNSHINE MINING AND REFINING COMPANY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
September 30, 1998
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements
of Sunshine Mining and Refining Company ("Sunshine" or the "Company")
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. Certain previously reported amounts have been
reclassified to conform to the September 30, 1998 presentation.
Operating results for the nine-month period ended September 30, 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
Sunshine's report on Form 10-K for the year ended December 31, 1997.
2. INVENTORIES
The components of inventory consist of the following:
<TABLE>
<CAPTION>
September 30 December 31
1998 1997
---------- ----------
<S> <C> <C>
Precious Metals Inventories:
Work in process $ 2,356 $ 2,171
Finished goods 180 264
Materials and supplies inventories 1,320 1,192
---------- ----------
$ 3,856 $ 3,627
========== ==========
</TABLE>
3. IMPAIRMENT OF CARRYING VALUE OF MINING PROPERTIES
Recent drilling in the West Chance vein, the focus of current mining
operations at the Sunshine Mine, may have encountered the limits of
that vein's updip development potential and, therefore, reduces the
size of the vein from what the Company previously expected. Based on
the most recent available data, the Company believes that production
from the West Chance may decline in 1999 to approximately 4 million
ounces at a net cash cost of approximately $4.90 per ounce. As a
result, combined with current low by-product prices and the recent
decline in silver prices, the Company no longer expects to recover its
investment in the Sunshine Mine. Accordingly $50.4 million of the total
net book value ($59.4 million) of the mine has been written off in
5
<PAGE> 6
the third quarter of 1998. The portion of the mine written off relates
primarily to property acquisitions in 1980 and 1984, and the sinking of the
internal 12-Shaft in 1979. See Management's Discussion and Analysis of
Financial Condition.
The Company is continuing to evaluate the potential for expansion of
the West Chance. Additionally, the Company will evaluate another system
that has potential to add production in the near term, the 101 Vein.
Further, the Company believes there is evidence other ore bodies exist in
the deep, eastern area of the mine that could replace the West Chance, and
that additional reserves and production will be added. However, the recent
decline in silver prices and the Company's investment commitments at its
Pirquitas Mine, along with low by-product prices, have caused the Company
to defer a major exploration and development effort in this area.
6
<PAGE> 7
SUNSHINE MINING AND REFINING COMPANY
Management's Discussion and Analysis of Financial Condition
and Results of Operations for the
Nine Months Ended September 30, 1998 and 1997
LIQUIDITY AND CAPITAL RESOURCES
During the first nine months of 1998, the Company has invested a total
of $10.7 million in exploration and development projects, principally at
Pirquitas, where $6.3 million has been invested in its development program
in 1998, for a total $16.2 million since its acquisition in November, 1995,
together with approximately $2.1 million in recoverable Value Added Taxes. The
Pirquitas investment has allowed the Company to develop a major ore reserve,
which the Company believes, based on estimates by its geologists, totals more
than 17 million tons of ore, containing 5.6 ounces of silver per ton, and .27 %
tin, or a total of 96 million ounces of silver, and 50,800 tons of tin.
The firms of Jacobs Engineering, Knight Piesold, and The Winters
Company have been preparing a bankable feasibility study of Pirquitas which is
expected to be delivered by the end of 1998. The Company expects the bankable
feasibility study to confirm in large part the Company's estimates of capital
and operating costs from the pre-feasibility study. The Company expects total
capital requirements for the development of the mine to approximate $90-100
million, and net cash operating costs to average approximately $2.65 per ounce
of silver, net of tin by-product credits. Average annual production is expected
to total approximately 9.5 million ounces of silver and 3,600 tons of tin over
an estimated nine year mine life, based on the current proven and probable
reserves. The Company believes Pirquitas to be a very economically attractive
project even at current low silver prices.
The Company is studying various alternatives to raise the financing
required to develop the mine. Recent uncertainty in world markets, along with
the decline in the silver price over the second and third quarters, has had a
negative impact on the apparent availability and cost of such financing.
The decline in silver and by-products prices during the third quarter
of 1998 and thereafter has caused the Company's operating cash flows to decline
below the levels it had anticipated. In response, the Company has significantly
curtailed its exploration and development expenditures at the Sunshine Mine,
Pirquitas, and elsewhere until such time as the silver price improves or the
Company raises additional capital.
At the end of the third quarter the Company had total working capital
of $13.5 million, including silver bullion held for investment totaling $7.0
million, valued at $5.32 per ounce (the September 30, 1998 closing price). The
Company's cash flow and working capital balances are highly leveraged to the
silver price. At the current silver price, additional capital will be required
to assure adequate liquidity for operations in the foreseeable future.
7
<PAGE> 8
The Company is in discussions to raise an additional $10-15 million in
capital for general corporate purposes, including continuing the development of
Pirquitas, continuing exploration work at the Sunshine Mine and its other
exploration projects, and assuring adequate liquidity for the foreseeable
future. Such an offering could be in the form of common or preferred stock,
convertible debt, or other securities.
Further impacting the Company's projected liquidity, drilling updip in
the West Chance reserve area has shown disappointing results, and may have
substantially defined the updip limits of this reserve. Based on the most recent
engineering data, West Chance production in 1999 will decline to approximately 4
million ounces at a net cash cost of approximately $4.90.
The Company is evaluating another system, the 101 Vein, which has
potential to add production in the near term, and which could improve the
production and cash cost outlook for 1999. On the 4600 level, drifting and
subsequent drilling on the 101 Vein established a reserve block with a grade of
28.6 ounces of silver per ton. Drilling outside the reserve block has indicated
further extensions of high-grade material. The Company's geologists believe the
101 Vein has the potential to host an ore deposit comparable to or greater than
the West Chance vein.
Longer term, the eastern area of the Sunshine Mine is expected to be
the source of future production. Prior to 1972, drifting on the 5000 level of
the Chester vein encountered ore-grade mineralization in the Good Hope area.
Three small reserve blocks with mine grades up to 103.5 ounces of silver per ton
were established. It is believed that drilling below the 5000 level in the Good
Hope area could delineate a major extension of the Chester vein, which
previously produced over 100 million ounces of silver.
While the Company is optimistic additional sources of reserves and
production will be found in the mine, given $5.00 per ounce silver and current
by-product prices and expected net cash costs, the Company does not believe that
it will recover its investment in the Sunshine Mine. The Company has, therefore,
determined to write-off $50.4 million of its investment in the Sunshine Mine in
the third quarter of 1998.
Certain matters discussed in this report are "forward-looking
statements" intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are all statements other than statements of historical fact,
including without limitation those that are identified by the use of the words
"anticipates," "believes," "estimates," "expects," "intends," "plans,"
"predicts," and similar expressions. Such statements address future plans,
objectives, expectations, and events or conditions concerning various matters
such as mining exploration, capital expenditures, earnings, litigation,
liquidity and capital resources, and accounting matters. Actual results in each
case could differ materially from those currently anticipated in such
statements, by reason of factors including with limitation, actual results of
exploration, silver prices, imprecision of reserve estimates, future economic
conditions, regulations, competition, and other circumstances affecting
anticipated revenue and costs. Any
8
<PAGE> 9
forward-looking statement speaks only as of the date on which such statement is
made, and the Company undertakes no obligation to update any forward-looking
statement.
Operating, Investing, and Financing Activities
Cash used in operating activities in the first nine months of 1998 was
$7.6 million compared to $12.8 million in the first nine months of 1997. The
$5.2 million decrease was primarily due to a reduction in cash operating loss to
$4.4 million in the first nine months of 1998 compared to $10.6 million in the
first nine months of 1997, partially offset by changes in working capital
components. The improvement in cash operating loss resulted primarily from
increased silver production and an increase in the average per ounce silver
price received for silver sold. Accounts receivable increased primarily due to
increased sales volumes. Investments increased primarily due to the reduction in
the valuation reserve previously booked against certain investments, partially
offset by investment sales.
Investing activities in the first nine months of 1998 used
approximately $6.0 million of cash including $5.7 million for the development of
Pirquitas (not including $600 thousand of associated value added tax paid and
recoverable after mining operations commence at Pirquitas, which is included in
other assets), $1.7 million of capital expenditures at the Sunshine Mine and
$400 thousand of other capital expenditures, partially offset by $1.8 million of
proceeds from sale of investments.
Impact of Year 2000
The Company has identified only one computer program that it currently
uses that would recognize a date using "00" as the year 2000, but "01" as the
year 1901 rather than 2001. The Company has reviewed its options to remedy this
problem and believes this can be accomplished timely and at a cost that is not
material.
The Company has contacted its significant vendors, suppliers, customers
and other third parties as to their Year 2000 exposure and compliance. To date,
the Company is not aware of any third parties with a Year 2000 issue that would
materially affect the Company's results of operations, liquidity, or capital
resources. However, the Company has no means of ensuring that external agents
will be Year 2000 ready. The inability of third parties to complete their Year
2000 resolution process in a timely fashion could materially impact the Company.
The effect of non-compliance by third parties is not determinable.
RESULTS OF OPERATIONS
THE THREE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1997
Consolidated operating revenues increased approximately $858 thousand
(11%) for the third quarter of 1998 compared to the third quarter of 1997. The
increase in operating revenues primarily resulted from an increase in silver
sales volumes and average price received per ounce of silver sold (1,382,000
ounces of silver at an average of $5.26
9
<PAGE> 10
per ounce in the 1998 quarter compared to 1,309,000 ounces at an average of
$4.78 per ounce in the 1997 quarter), partially offset by reduced by-product
revenue. The silver sales volume increase primarily resulted from a 264,000
ounce (22%) increase in production in the 1998 quarter.
Mark to market writedown of work-in-process silver inventories and
silver held for investment amounted to $906 thousand in 1998 compared to a $1.0
million mark to market gain in the 1997 quarter. The writedown, which was due to
declines in the per ounce silver price during the 1998 period, was charged
against revenues.
Cost of revenues increased $540 thousand (8.2%) (from $6.6 million in
the third quarter of 1997 to $7.1 million in the third quarter of 1998)
primarily due to the 22% increase in production in 1998. Silver production
amounted to 1.45 million ounces produced from 62,250 tons at 24.06 ounces per
ton in 1998 compared to 1.19 million ounces from 47,418 tons at 25.92 ounces per
ton in 1997. Net unit operating costs increased $.33 per ounce (8%) to $4.41 per
ounce of silver primarily due to a decrease in by-product credits of $.37 per
ounce of silver, partially offset by a reduction in operating costs per ounce of
silver produced. The decrease in by-products credit per ounce of silver resulted
primarily from a decrease in copper, antimony and lead prices in the 1998
quarter compared to the 1997 quarter.
Depreciation, depletion and amortization increased by approximately $58
thousand as a result of increased production in the 1998 quarter partially
offset by lower depletion rates due to increased silver reserves at January 1,
1998 compared to January 1, 1997.
The 1998 period reflects a $50.4 million charge as an impairment
writedown of the Sunshine Mine. See Footnote 3.
Exploration expense decreased $80 thousand in 1998 compared to 1997
primarily due to the fact that work carried out at the Pirquitas Mine in
Argentina is largely being capitalized as the property is now considered to be
in the development stage. As a result, approximately $2.8 million of
expenditures for Pirquitas during the 1998 quarter were capitalized. This was
partially offset by increased exploration expenditures at the La Joya del Sol
gold property in Argentina, at the Sunshine Mine and other exploration projects.
Selling, general and administrative expense decreased $57 thousand
(4.5%) due to a variety of cost reductions.
Interest and debt expense increased $350 thousand primarily due to the
debt issued in November 1997.
Other, net of $1.1 million in the 1998 quarter resulted from proceeds
received from settlement of certain litigation.
THE NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1997
Consolidated operating revenues increased approximately $8.8 million
(49.8%) for the first nine months of 1998 compared to the first nine months of
1997 primarily due to an increase in sales volume and average price received per
ounce of silver sold (4.1 million
10
<PAGE> 11
ounces of silver at an average of $5.54 per ounce in the first nine months of
1998 compared to 3.0 million ounces of silver at an average of $4.86 in the same
period of 1997) and the associated $312 thousand increase in by-product revenue.
The increase in sales volumes primarily resulted from a 1.3 million ounce
(44.3%) increase in production in 1998 compared to 1997.
Mark to market writedown of work-in-process silver inventories and
silver bullion held for investment amounted to $1.6 million in 1998 compared to
a $814 thousand gain in 1997. The writedown was due to declines in the per ounce
silver price from $5.945 to $5.32 between December 31, 1997 and September 30,
1998. The 1997 gain was due to the increase from $4.74 to $5.19 per ounce of
silver between December 31, 1996 and September 30, 1997.
Cost of revenues increased $4.2 million (24.5%) (from $17.3 million in
the first nine months of 1997 to $21.5 million in the first nine months of 1998)
primarily due to the 44.3% increase in production in 1998, partially offset by
lower net unit operating costs. Net unit operating costs decreased $.40 (8%) to
$4.49 per ounce of silver primarily due to the 44.3% increase in silver
production (4.2 million ounces produced from 179,134 tons at 24.02 ounces per
ton in 1998 versus 2.9 million ounces from 131,085 tons at 22.83 ounces per ton
in 1997).
Depreciation, depletion and amortization increased by approximately
$430 thousand as a result of increased production in the 1998 period, partially
offset by lower depletion rates.
The 1998 period reflects a $50.4 million charge as an impairment
writedown of the Sunshine Mine. See Footnote 3.
Exploration expense decreased $1.9 million in 1998 compared to 1997
primarily due to the fact that work carried out at the Pirquitas Mine in
Argentina is largely being capitalized as the property is now considered to be
in the development stage. As a result, approximately $5.7 million of
expenditures for Pirquitas during 1998 were capitalized. This was partially
offset by increased exploration expenditures at the La Joya del Sol gold
property in Argentina, at the Sunshine Mine and other exploration projects.
Selling, general and administrative decreased $307 thousand (7.5%) due
to a variety of cost reductions.
Interest expense increased $1.0 million due to the debt issued in
November 1997.
Other, net increased $2.7 million due to a $1.1 million net gain for
proceeds received from settlement of certain litigation and the $1.6 million
reduction of the valuation reserves previously recorded against certain
investments as a result of restructuring and performance of certain investments.
11
<PAGE> 12
SUNSHINE MINING AND REFINING COMPANY
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On September 30, 1998, the United States District Court for the
District of Idaho granted the Company's Motion for Partial Summary
Judgment limiting the United State's potential natural resource damage
claims in the Coeur d'Alene River Basin of Northern Idaho to the 21
square mile Bunker Hill Superfund Site.
The effect of the ruling substantially limits the government's
claim for damages from a 1500 square mile site to the 21 square mile
Bunker Hill Superfund Site, within which the Company has, pursuant to a
Consent Decree with other defendants, been engaged in clean-up
operations.
The United States is seeking an interlocutory appeal of the order
to which the Company and other defendants have objected as being
unwarranted.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits None
(b) Reports on Form 8-K None
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 hereto duly authorized.
SUNSHINE MINING AND REFINING COMPANY
Dated: October , 1998 By: /s/ WILLIAM W. DAVIS
-------------------------
William W. Davis
Executive Vice President
and Chief Financial Officer
12
<PAGE> 13
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 1998 AND UNAUDITED
STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 2,459
<SECURITIES> 0
<RECEIVABLES> 4,476
<ALLOWANCES> 0
<INVENTORY> 3,856
<CURRENT-ASSETS> 19,207
<PP&E> 150,872
<DEPRECIATION> 82,220
<TOTAL-ASSETS> 92,736
<CURRENT-LIABILITIES> 5,694
<BONDS> 42,166
0
0
<COMMON> 2,614
<OTHER-SE> 32,669
<TOTAL-LIABILITY-AND-EQUITY> 92,735
<SALES> 26,479
<TOTAL-REVENUES> 24,908
<CGS> 21,535
<TOTAL-COSTS> 26,028
<OTHER-EXPENSES> 54,216
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,142
<INCOME-PRETAX> (61,034)
<INCOME-TAX> 0
<INCOME-CONTINUING> (61,034)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (61,034)
<EPS-PRIMARY> (0.24)
<EPS-DILUTED> (0.24)
</TABLE>
