<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
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 No. 0-22088
MONARCH CASINO & RESORT, INC.
(Exact name of registrant as specified in its charter)
-------------------------
NEVADA 88-0300760
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1175 W. MOANA LANE, SUITE 200
RENO, NEVADA 89509
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code: (775) 825-3355
-------------------------
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 ___
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. YES ___ NO ___
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date. As of May 3, 2000, there
were 9,436,275 shares of Monarch Casino & Resort, Inc. $0.01 par value common
stock outstanding.
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------
2000 1999
------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues
Casino...................................... $ 14,048,729 $ 10,050,707
Food and beverage........................... 6,775,376 4,561,487
Hotel....................................... 4,109,261 2,362,892
Other....................................... 809,776 633,056
------------ ------------
Gross revenues........................... 25,743,142 17,608,142
Less promotional allowances................. (3,093,416) (2,674,607)
------------ ------------
Net revenues............................. 22,649,726 14,933,535
------------ ------------
Operating expenses
Casino...................................... 5,833,903 4,528,476
Food and beverage........................... 4,251,636 2,530,308
Hotel....................................... 1,616,464 707,598
Other....................................... 307,076 216,772
Selling, general and administrative......... 5,958,071 4,831,231
Depreciation and amortization............... 2,499,755 1,177,944
------------ ------------
Total operating expenses................. 20,466,905 13,992,329
------------ ------------
Income from operations................... 2,182,821 941,206
------------ ------------
Other expense
Interest expense............................ 2,039,109 619,935
------------ ------------
Total other expense...................... 2,039,109 619,935
------------ ------------
Income before income taxes............... 143,712 321,271
Provision for income taxes.................... 50,508 109,232
------------ ------------
Net Income............................... $ 93,204 $ 212,039
============ ============
Income per share of common stock
Net income
Basic..................................... $ 0.01 $ 0.02
Diluted................................... $ 0.01 $ 0.02
Weighted average number of common
shares and potential common
shares outstanding
Basic..................................... 9,436,275 9,436,275
Diluted................................... 9,483,785 9,510,369
</TABLE>
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-2-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets
Cash............................................ $ 4,116,575 $ 6,367,507
Receivables, net................................ 2,363,576 1,954,447
Related party receivables....................... 84,432 83,205
Inventories..................................... 1,253,822 1,456,602
Prepaid expenses................................ 1,953,381 1,600,249
Prepaid federal income taxes.................... 443,870 443,870
Deferred income taxes........................... 1,278,795 1,174,626
------------ ------------
Total current assets......................... 11,494,451 13,080,506
------------ ------------
Property and equipment
Land............................................ 10,339,530 10,339,530
Land improvements............................... 3,077,298 3,034,095
Buildings....................................... 78,712,595 78,432,078
Furniture and equipment......................... 49,827,384 49,392,494
Building improvements........................... 4,487,226 4,462,520
------------ ------------
146,444,033 145,660,717
Less accumulated depreciation and amortization.. (30,463,069) (27,964,180)
------------ ------------
Net property and equipment................... 115,980,964 117,696,537
------------ ------------
Other assets, net................................. 825,704 877,382
------------ ------------
Total assets................................. $128,301,119 $131,654,425
============ ============
</TABLE>
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-3-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------ ------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt............ $ 7,425,206 $ 7,333,921
Accounts payable................................ 5,138,143 7,238,084
Accounts payable construction................... 310,488 942,264
Accrued expenses................................ 6,115,134 5,156,363
Federal income taxes payable.................... 283,622 213,686
------------ ------------
Total current liabilities.................... 19,272,593 20,884,318
Long-term debt, less current maturities........... 80,315,983 82,235,509
Deferred income taxes............................. 2,750,758 2,666,017
Commitments and contingencies.....................
Stockholders' equity
Preferred stock, $.01 par value, 10,000,000
shares authorized; none issued................. - -
Common stock, $.01 par value, 30,000,000
shares authorized; 9,536,275 issued;
9,436,275 outstanding.......................... 95,363 95,363
Additional paid-in capital...................... 17,241,788 17,241,788
Treasury stock.................................. (329,875) (329,875)
Retained earnings............................... 8,954,509 8,861,305
------------ ------------
Total stockholders' equity................... 25,961,785 25,868,581
------------ ------------
Total liabilities and stockholders' equity... $128,301,119 $131,654,425
============ ============
</TABLE>
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-4-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------
2000 1999
------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income.................................. $ 93,204 $ 212,039
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization............. 2,545,132 1,223,205
Gain on disposal of assets................ (87,980) -
Deferred income taxes..................... (19,428) (37,738)
(Increase) decrease in receivables, net... (410,356) 56,424
Decrease (increase) in inventories........ 202,780 (83,249)
(Increase) decrease in prepaid expenses... (353,132) 439,981
Decrease (increase) in other assets....... 5,435 (31,678)
Decrease in accounts payable.............. (2,099,941) (152,477)
Increase in accrued expenses,
and federal income taxes payable......... 1,028,707 700,310
------------ ------------
Net cash provided by
operating activities.................... 904,421 2,326,817
------------ ------------
Cash flows from investing activities:
Proceeds from sale of assets................ 87,980 -
Acquisition of property and equipment....... (759,263) (17,741,284)
(Decrease) increase in
accounts payable construction.............. (631,776) 7,954
------------ ------------
Net cash used in investing activities.... (1,303,059) (17,733,330)
------------ ------------
Cash flows from financing activities:
Proceeds from long-term debt................ - 15,795,368
Principal payments on long-term debt........ (1,852,294) (282,950)
------------ ------------
Net cash (used in) provided
by financing activities................. (1,852,294) 15,512,418
------------ ------------
Net (decrease) increase in cash......... (2,250,932) 105,905
Cash at beginning of period................... 6,367,507 4,919,143
------------ ------------
Cash at end of period......................... $4,116,575 $ 5,025,048
============ ============
Supplemental disclosure of
cash flow information:
Cash paid for interest,
net of capitalized interest................ $1,536,395 $ 315,664
Capitalized interest........................ - $ 529,224
Supplemental schedule of non-cash
investing and financing activities:
The Company financed the purchase
of property and equipment in the
following amounts........................... $ 24,053 $ 306,867
</TABLE>
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-5-
MONARCH CASINO & RESORT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Monarch Casino & Resort, Inc. ("Monarch") was incorporated in 1993.
Golden Road Motor Inn, Inc. ("Golden Road") operates the Atlantis Casino
Resort (the "Atlantis"), a hotel/casino facility in Reno, Nevada and owns a
16-acre site adjacent to the Atlantis which is . Unless stated
otherwise, the "Company" refers collectively to Monarch and its wholly owned
subsidiary, Golden Road.
The consolidated financial statements include the accounts of Monarch and
Golden Road. Intercompany balances and transactions are eliminated.
Use of Estimates
In preparing these financial statements in conformity with generally
accepted accounting principles, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial
statements and revenues and expenses during the year. Actual results could
differ from those estimates.
Reclassifications
Certain amounts in the 1999 consolidated financial statements have been
reclassified to conform with the 2000 presentation. These reclassifications
had no effect on the Company's previously reported net income.
Related Party Receivables
Receivables from officers, employees, or affiliated companies are
primarily for banquet related services and are priced at the retail value of
the goods or services provided.
NOTE 2. INTERIM FINANCIAL STATEMENTS
The accompanying condensed consolidated financial statements for the
three month periods ended March 31, 2000 and March 31, 1999 are unaudited. In
the opinion of management, all adjustments, consisting of normal recurring
adjustments necessary for a fair presentation of the Company's financial
position and results of operations for such periods, have been included. The
accompanying unaudited condensed consolidated financial statements should be
read in conjunction with the Company's audited financial statements included
in its Annual Report on Form 10-K for the year ended December 31, 1999. The
results for the three month period ended March 31, 2000 are not necessarily
indicative of the results that may be expected for the year ending December
31, 2000, or for any other period.
-6-
NOTE 3. EARNINGS PER SHARE
In 1997, the Company adopted the provisions of Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings Per Share." SFAS No. 128
replaces previously reported earnings per share with "basic" earnings per
share and "diluted" earnings per share. Basic earnings per share is computed
by dividing reported net earnings by the weighted-average number of common
shares outstanding during the period. Diluted earnings per share reflects the
additional dilution for all potentially dilutive securities such as stock
options.
reflects the potential dilution that could occur if options to issue common
stock were exercised into common stock.
The following is a reconciliation of the number of shares (denominator)
used in the basic and diluted earnings per share computations (shares in
thousands):
<TABLE>
<CAPTION>
Three Months ended March 31,
-----------------------------------
2000 1999
---------------- ----------------
Per Share Per Share
Shares Amount Shares Amount
------ --------- ------ ---------
<S> <C> <C> <C> <C>
Net Income
Basic..................... 9,436 $0.01 9,436 $0.02
Effect of dilutive
stock options............ 48 - 74 -
------ --------- ------ ---------
Diluted................... 9,484 $0.01 9,510 $0.02
====== ========= ====== ========
</TABLE>
The following options were not included in the computation of diluted
earnings per share because the options' exercise price was greater than the
average market price of the common shares and their inclusion would be
antidilutive:
<TABLE>
<CAPTION>
Three Months ended March 31,
----------------------------
2000 1999
----------- -----------
<S> <C> <C>
Options to purchase shares of
common stock (in thousands)..... 19 2
Exercise prices.................. $5.25-$6.00 $ 8.06
Expiration dates................. 6/03-2/10 6/99
</TABLE>
-7-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information included herein contains statements that may be
considered forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
such as statements relating to anticipated expenses, capital spending and
financing sources. Such forward-looking information involves important risks
and uncertainties that could significantly affect anticipated results in the
future and, accordingly, such results may differ from those expressed in any
forward-looking statements made herein. These risks and uncertainties
include, but are not limited to, those relating to competitive industry
conditions, and expansion of Indian casinos in California, Reno-area tourism
conditions, dependence on existing management, leverage and debt service
(including sensitivity to fluctuations in interest rates), the regulation of
the gaming industry (including actions affecting licensing), outcome of
litigation, domestic or global economic conditions, changes in federal or
state tax laws or the administration of such laws.
RESULTS OF OPERATIONS
Comparison of Operating Results for the Three Month
Periods Ended March 31, 2000 and 1999
For the three month period ended March 31, 2000, the Company had net
income of $93 thousand, or $0.01 per share, on net revenues of $22.6 million,
a decrease from net income of $212 thousand, or $.02 per share, on net
revenues of $14.9 million for the three months ended March 31, 1999. Income
from operations for the three months ended March 31, 2000 totaled $2.2
million, compared to $941 thousand for the same period in 1999. The Company's
first quarter of 2000 net revenue represents a new first quarter record for
the Company, but net income and earnings per share were negatively impacted
primarily by construction disruption and start-up expenses related to the
Company's Atlantis expansion project (the "Atlantis Expansion") due to a
112.2% increase in depreciation and amortization and a 228.9% increase in
interest expense compared to last year's first quarter. and the absence of a
major event comparable to the four month American Bowling Congress Tournament
in 1999's first quarter results In the Reno area market, the January through
March period encompassing the Company's first quarter has traditionally been
marked by weather-related seasonality, with winter storms producing moderate
to severe travel delays and difficulties for visitors to the region. The
impact of the weather this year and the absence of a major event were
relatively minor when compared to the negative impact that construction
disruption and start-up expenses was relatively minor.
The Company incurred ongoing expansion related expenses throughout the first
quarter of 1999 with no meaningful offsetting revenues from new capacity
coming on line. The Atlantis Expansion consists of the enclosed overhead
"skywalk" structure connecting the Atlantis with its 16 acre site across South
Virginia Street from the Atlantis (the "Skywalk") and a new 27- story hotel
tower containing additional casino and public space (the "Hotel Tower
Project"). The Company completed the Skywalk during the third week of March
1999 and began bringing on line certain areas of the Hotel Tower Project
during April 1999. The remainder of the Hotel Tower Project will be phased in
over a period ending sometime late in the quarter ending June 30, 1999.
Casino revenues were up 39.8% in the first quarter of 2000 compared to
the first quarter of 1999, reflecting increases in both slot and table game
win. Slot revenues were up 41.0% in the first quarter of 2000 compared to the
first quarter of 1999 due to an increase in the volume of slot machine play
and an increase in the number of slot machines on average for the quarter.
Table game revenue in the first quarter of 2000 increased 33.0% from the first
quarter of 1999 due to an increase in table game drop and an increase in the
number of table games on average for the quarter. Casino operating expenses
amounted to 41.5% of casino revenues in the first quarter of 2000, compared to
45.1% in the first quarter of 1999, with the difference due primarily to a
decrease in operating and complimentaries costs.
-8-
Food and beverage revenues increased increased 48.5% in the first
quarter of 2000 compared to the first quarter of 1999 due primarily to the
opening of two new restaurants, an additional beverage lounge, and expansion
of the buffet. While food and beverage operating margins remained relatively
constant, reported food and beverage expenses amounted to to 62.8% of food
and beverage revenues during the first quarter of 2000, an improvement from
compared to 55.5% in the first quarter of 1999, which was primarily caused by
classifying certain food and beverage costs in accordance with accounting
requirements prescribed by the Securities and Exchange Commission.
Hotel revenueswere essentially flat in the 2000 first quarter decreasing
increased %73.9% from the 1999 first quarter, due to the opening of the
new hotel tower with 385 rooms. The Atlantis' average daily room rate ("ADR")
decreased was $50.67 in the first quarter of 2000 compared to $49.95 in the
first quarter of 1999. Hotel operating expenses in the 2000 first quarter
were 39.3% of hotel revenues, compared to 29.9% in the 1999 first quarter, as
a result of increased payroll and operating costs for the expanded hotel in
general and specifically for the new concierge tower.
Other revenues increased increased 27.9% in the 2000 first quarter
compared to the 1999 first quarter, primarily reflecting the opening of a logo
gift shop. Other expenses in the 2000 first quarter amounted to to 37.9%
of other revenues, compared to 34.2% in the 1999 first quarter as a result of
higher gift shop operating costs and a decrease in the 2000 first quarter bad
debt recoveries compared to the 1999 first quarter.
Selling, general and administrative expenses amounted to to 26.3% of
net revenues in the first quarter of 2000, compared to 32.4% in the first
quarter of 1999. Thisincrease decrease is primarily due to higher personnel
costs and higher economies of payroll and operating costs as a result of the
expansion, whereby these costs did not increase as rapidly as revenues
increased.
Interest expense for the 2000 first quarter totaled $ $2.0
thousandmillion, an decrease increase of of 228.9%, from $575 620 thousand
in the 1999 first quarter. The decrease increase reflects lower average
interest rates on the Company's debt and the capitalization of certain
interest costs in the 2000 period. the Company's increased debt due to the
Atlantis expansion and an increase in interest rates. In the 2000 first
quarter, the Company did not capitalize any interest costs; however, during
the 1999 first quarter, $529 thousand in interest costs were capitalized.
OTHER FACTORS AFFECTING CURRENT AND FUTURE RESULTS
The recent constitutional amendment approved by California voters
allowing the expansion of Indian casinos in California will have an impact on
casino revenues in Nevada in general, and many analysts have predicted the
impact will be more significant on the Reno-Lake Tahoe market. The extent of
this impact is difficult to predict, but the Company believes that the impact
on the Company will be mitigated to an extent due to the Atlantis' emphasis on
Reno area residents as a significant base of its business. However, if other
Reno area casinos suffer business losses due to increased pressure from
California Indian casinos, they may intensify their marketing efforts to Reno
area residents as well. However, the Company's numerous amenities such as a
wide array of restaurants and other venues are a key factor in the Company's
ability to attract Reno area residents which competitor facilities will not
easily be able to match.
-9-
The Company also believes that the legalization of unlimited land-based
casino gaming in or near any major metropolitan area in the Atlantis' key
marketing areas, such as San Francisco or Sacramento, could have a material
adverse effect on its business.
The gaming industry represents a significant source of tax revenues to
the State of Nevada. A recent proposal in Nevada would increase the tax on
gaming revenues from 6.25% to 11.25%. If enacted, this proposal would have a
material impact on the Company's results of operations.
LIQUIDITY AND CAPITAL RESOURCES
For the three months ended March 31, 2000, net cash provided by operating
activities totaled $ $904 millionthousand.. Net cash used in investing
activities for the same period totaled $1.3 million, which consisted
primarily of acquisitions of property and equipment at the Atlantis. Net cash
used for financing activities totaled $ $1.9 million as the Company used
funds to fund the costs of the Atlantis Expansionreduce long-term debt. As a
result, at March 31, 2000, the Company had cash of $ $4.1 million, compared
to $5.06.4 million at December 31, 1999.
The Company has an $80 million construction and reducing revolving credit
facility with a group of banks (the "Credit Facility"). The principal terms
of the Credit Facility are summarized in the Company's Annual Report on Form
10-K for the year ended December 31, 19981999. At March 31, 2000, the
outstanding balance of the Credit Facility was $ $79.3 million.
The Company also has available a second bank credit facility on
which it may borrow up to $4.5 million. The principal terms of this second
bank credit facility are also summarized in the Company's Annual Report on
Form 10-K for the year ended December 31, 1998. At March 31, 2000, the
outstanding balance on this second bank credit facility was $ thousand.
In addition to the potential funding requirements associated with the Atlantis
Expansion, tThe Company continues to monitor expansion and development
opportunities at its other Reno site and elsewhere in Nevada and in other
jurisdictions. The decision by the Company to proceed with any substantial
project will require the Company to secure adequate financing on acceptable
terms. No assurances can be made that if such projects are pursued that
adequate financing would be available on acceptable terms, if at all.
The Company believes that its existing cash balances, cash flow from
operations and borrowings available under the Credit Facility will provide the
Company with sufficient resources to fund its operations, meet its existing
debt obligations and fund its capital expenditure requirements; however, the
Company's operations are subject to financial, economic, competitive,
regulatory, and other factors, many of which are beyond its control. If the
Company is unable to generate sufficient cash flow, it could be required to
adopt one or more alternatives, such as reducing, delaying or eliminating
planned capital expenditures, selling assets, restructuring debt or obtaining
additional equity capital.
-10-
<PAGE>
YEAR 2000
The Company has undertaken an assessment of the information systems and
software used in its operations to determine whether or not those systems were
Year 2000 compliant, and implemented plans to upgrade or replace systems
and/or software that was determined not to be Year 2000 compliant. Based on
that assessment, and the plans made as a result thereof, the Company believes
that its critical information systems are Year 2000 compliant or will be made
Year 2000 compliant before the end of 1999. The Company begun, and is
continuing to assess, potential issues related to the Year 2000 other than
those relating to the Company's internal information systems, such as critical
supplier readiness and potential problems associated with embedded
technologies, and will develop and implement plans to correct any deficiencies
found. The costs of addressing the Company's Year 2000 issues have not been
fully determined, but are not currently expected to be material to the
Company's financial position; however, should the Company and/or its critical
suppliers fail to identify and/or correct material Year 2000 issues, such
failure could impact the Company's ability to operate as it did before the
Year 2000, and subsequently have a material impact on the Company's operating
results or financial position. In such an event, the Company will address
issues as they arise and strive to minimize any impact on the Company's
operations.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit No. Description
----------- -----------
27.01 Financial Data Schedule
(b) Reports on Form 8-K
None.
-11-
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.
MONARCH CASINO & RESORT, INC.
(Registrant)
<TABLE>
<S> <C>
Date: May 11, 2000 By: /s/ BEN FARAHI
------------------------------------
Ben Farahi, Co-Chairman of the Board,
Secretary, Treasurer and Chief
Financial Officer(Principal Financial
Officer and Duly Authorized Officer)
</TABLE>
-12-
EXHIBIT INDEX
<TABLE>
<S> <C> <C>
Exhibit No. Description Page No.
- ----------- ----------- --------
27.01 Financial Data Schedule
</TABLE>
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANT'S
CONDENSED CONSOLIDATED FINANCIAL STATMENTS AS OF MARCH 31, 2000 AND THE
ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS AND NOTES TO
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 4,116,575
<SECURITIES> 0
<RECEIVABLES> 2,448,008
<ALLOWANCES> 0
<INVENTORY> 1,253,822
<CURRENT-ASSETS> 11,494,451
<PP&E> 146,444,033
<DEPRECIATION> 30,463,069
<TOTAL-ASSETS> 128,301,119
<CURRENT-LIABILITIES> 19,272,593
<BONDS> 80,315,983
0
0
<COMMON> 95,363
<OTHER-SE> 25,866,422
<TOTAL-LIABILITY-AND-EQUITY> 128,301,119
<SALES> 0
<TOTAL-REVENUES> 22,649,726
<CGS> 0
<TOTAL-COSTS> 12,009,079
<OTHER-EXPENSES> 2,499,755
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,039,109
<INCOME-PRETAX> 143,712
<INCOME-TAX> 50,508
<INCOME-CONTINUING> 93,204
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 93,204
<EPS-BASIC> 0.01
<EPS-DILUTED> 0.01
</TABLE>
