U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
EXCHANGE ACT OF 1934
For the transition period from________ to _________
Commission file number 0-22132
BUCKHEAD AMERICA CORPORATION
(Exact name of small business issuer as
specified in its charter)
DELAWARE 58-2023732
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization
4243 DUNWOODY CLUB DRIVE, SUITE 200, ATLANTA, GEORGIA 30350
(Address of principal executive offices)
(770) 393-2662
(Issuer's telephone number)
N/A
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: July 31, 1998
Common stock, par value $.01 - 1,951,427 shares outstanding
Transitional Small Business Disclosure Format (Check one):
Yes No X
1
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
BUCKHEAD AMERICA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Financial Statements
June 30, 1998 and 1997
(Unaudited)
2
<PAGE>
BUCKHEAD AMERICA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
June 30, 1998
(Unaudited)
Assets
Current assets:
Cash and cash equivalents, including
restricted cash of $659,263 $ 3,107,763
Investment securities 190,931
Accounts receivable 1,766,757
Current portions of notes receivable 343,468
Other current assets 538,536
-----------
Total current assets 5,947,455
Noncurrent portions of notes receivable 1,215,437
Property and equipment, at cost, net of
accumulated depreciation 39,281,868
Deferred tax assets 3,080,000
Deferred costs, net 2,397,870
Leasehold interests, net 3,633,568
Other assets 1,597,146
----------
$ 57,153,344
==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 3,916,763
Current portions of notes payable 989,539
----------
Total current liabilities 4,906,302
Noncurrent portions of notes payable 31,894,170
Other liabilities 314,228
----------
Total liabilities 37,114,700
----------
Minority interest in partnership 706,313
Shareholders' equity:
Series A preferred stock; par value $100;
200,000 shares authorized; 30,000 shares
issued and outstanding 3,000,000
Common stock; $.01 par value; 5,000,000
shares authorized; 2,003,277 shares issued
and 1,951,427 shares outstanding 20,033
Additional paid-in capital 7,362,487
Retained earnings 9,372,132
Treasury stock (51,850 shares) (422,321)
----------
Total shareholders' equity 19,332,331
----------
$ 57,153,344
==========
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
BUCKHEAD AMERICA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Income(Loss)
Six Months ended June 30, 1998 and 1997
(Unaudited)
1998 1997
----------- ---------
Revenues:
Hotel revenues $ 12,047,433 $ 5,714,906
Interest income 155,379 676,804
Other income 705,812 1,474,631
------- ----------
Total revenues 12,908,624 7,866,341
---------- ----------
Expenses:
Hotel operations 8,985,637 4,263,466
Other operating and administrative 2,057,390 1,396,800
Depreciation and amortization 872,425 458,544
Interest 1,414,392 613,542
---------- ----------
Total expenses 13,329,844 6,732,352
---------- ----------
Income(loss) before income taxes (421,220) 1,133,989
Deferred income tax benefit (150,000) -
---------- ------
Net income(loss) $ (271,220) 1,133,989
========= ==========
Net income(loss) per common share:
Basic $ (0.22) .63
====== ====
Diluted $ (0.22) .61
====== ====
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
BUCKHEAD AMERICA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Income
Three Months ended June 30, 1998 and 1997
(Unaudited)
1998 1997
----------- ---------
Revenues:
Hotel revenues $ 7,014,843 3,426,734
Interest income 64,476 114,225
Other income 517,596 588,510
--------- ---------
Total revenues 7,596,915 4,129,469
--------- ---------
Expenses:
Hotel operations 5,001,770 2,675,227
Other operating and administrative 1,192,042 809,757
Depreciation and amortization 460,794 268,244
Interest 754,343 356,494
--------- ---------
Total expenses 7,408,949 4,109,722
--------- ---------
Income before income taxes 187,966 19,747
Deferred income tax expense 70,000 -
--------- -----
Net income $ 117,966 19,747
========= =========
Net income per common share:
Basic $ 0.02 0.01
==== ====
Diluted $ 0.02 0.01
==== ====
See accompanying notes to condensed consolidated financial statements.
5
<PAGE>
BUCKHEAD AMERICA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 1998 and 1997
(Unaudited)
1998 1997
----------- -----------
Cash flows from operating activities:
Net income(loss) $ (271,220) $ 1,133,989
Adjustments to reconcile net income(loss)
to net cash provided (used) by
operating activities:
Depreciation and amortization 872,425 458,544
Sales (purchases)of trading securities, net 2,998,950 31,269
Gain on note sale - (800,000)
Other, net (62,528) (1,442,239)
---------- ----------
Net cash provided (used) by
operating activities 3,537,627 (618,437)
---------- ----------
Cash flows from investing activities:
Note receivable principal receipts 374,643 910,958
Originations of notes receivable (838,721) (320,000)
Capital expenditures (1,692,181) (643,942)
Other, net (1,745,807) 829,149
---------- ----------
Net cash provided (used) by
investing activities (3,902,066) 776,165
---------- ----------
Cash flows from financing activities:
Repayments of notes payable (438,407) (194,437)
Additional borrowings 921,210 -
Preferred stock dividends (150,000) -
Other, net (142,375) -
---------- --------
Net cash provided (used) by
financing activities 190,428 (194,437)
---------- -----------
Net increase (decrease) in cash and
cash equivalents (174,011) (36,709)
Cash and cash equivalents at beginning
of period 3,281,774 1,801,670
---------- ----------
Cash and cash equivalents at end of period $ 3,107,763 1,764,961
========== ==========
(Continued)
See accompanying notes to condensed consolidated financial statements.
6
<PAGE>
BUCKHEAD AMERICA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows - Continued
Six Months Ended June 30, 1998 and 1997
(Unaudited)
Supplemental disclosures of noncash investing and financing activities:
In May 1998, the Company recorded the following partial cash activity
relating to an acquired 121-room hotel in Norcross, Georgia:
Costs:
Cash and payables $ 223,101
Debt assumed 3,818,798
---------
Property and equipment acquired $ 4,041,899
=========
In June 1998, the Company recorded the following partial cash activity
relating to the acquisition of leasehold interests in seven hotels owned by
Host Funding, Inc.:
Costs:
Cash and payables $ 516,635
Common stock issued 400,000
-------
Leasehold interests acquired $ 916,635
=======
In May 1997, the Company recorded the following partial cash activity
relating to the acquisition of The Lodge Keeper Group, Inc.:
Costs:
Cash $ 825,000
Common stock issued, net
of treasury stock acquired 658,580
Debt assumed 4,784,754
----------
$ 6,268,334
=========
Allocated to:
Property and equipment $ 4,489,490
Other assets 3,127,860
Working capital deficit (1,349,016)
---------
$ 6,268,334
=========
See accompanying notes to condensed consolidated financial statements.
7
<PAGE>
BUCKHEAD AMERICA CORPORATION
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
June 30, 1998 and 1997
(Unaudited)
(1) Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
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. The results of operations for interim
periods are not necessarily indicative of the results that may be
expected for a full year or any other interim period. For further
information, see the consolidated financial statements included in the
Company's Form 10-KSB for the year ended December 31, 1997.
(2) Statement of Financial Accounting Standards No. 130,
Reporting Comprehensive Income
In June 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 130,
Reporting Comprehensive Income. This statement establishes standards
for reporting and display of comprehensive income and its components
in a full set of general purpose financial statements. The term
"comprehensive income" is used in SFAS No. 130 to describe the total
of all components of comprehensive income including net income. "Other
comprehensive income" refers to revenues, expenses, gains, and losses
that are included in comprehensive income but excluded from earnings
under current accounting standards. Currently, "other comprehensive
income" for the Company consists solely of items previously recorded
as a component of shareholders' equity under SFAS No. 115, Accounting
for Certain Investments in Debt and Equity Securities.
Total comprehensive income(loss)for the six months ended June 30, 1998
and 1997 was $(271,220) and $678,861, respectively, and for the three
months ended June 30, 1998 and 1997 was $117,966 and $19,747,
respectively.
8
<PAGE>
Item 2. Management's Discussion and Analysis.
FINANCIAL CONDITION AND CHANGES IN FINANCIAL CONDITION.
First Half 1997
The Company completed the renovations of the Atlanta, Georgia Country Hearth Inn
in January 1997. The Company completed the renovations of the Dalton, Georgia
Country Hearth Inn in February 1997 and also completed certain enhancements to
the Orlando, Florida Country Hearth Inn which were required under its debt
obligation. Capital expenditures on these three hotels during the first half of
1997 aggregated approximately $608,000 and were funded from available cash and
restricted funds.
The Company received $800,000 cash from the sale of a mortgage note in February
1997. The Company also received approximately $1.6 million cash from its
investment in Industrial Revenue Bonds which were called in February 1997.
In February 1997, the Company sold two wholly owned subsidiaries which held the
investment in Days Inns Mortgage Trust ("DIMT"). DIMT was treated as a
partnership for income tax purposes and had produced significant tax purpose net
operating losses ("NOLs") totaling approximately $34 million through December
31, 1996. These NOLs had no impact on the Company's book provision for regular
taxes because the ultimate dissolution of the partnership would result in
immediate gain recognition for a comparable amount. Because of NOL limitations,
the Company was exposed, however, to significant potential future alternative
minimum tax liability. All of these tax attributes accompanied the DIMT interest
with its sale, and the Company's tax position is no longer impacted by DIMT.
On May 8, 1997, the Company completed its acquisition of The Lodge Keeper Group,
Inc. of Prospect, Ohio ("Lodge Keeper"). The purchase price totaled
approximately $6.3 million consisting primarily of cash of $825,000, 106,320
shares of common stock of the Company, and the assumption of approximately $4.8
million of debt. Lodge Keeper operated 18 hotels under long-term leases, held
management contracts on six Country Hearth Inn hotels and owned one independent
hotel, among other assets.
Approximately $4.5 million of the purchase price was allocated to property and
equipment and approximately $2.9 million to leasehold interests. The Company
also assumed a working capital deficit of approximately $1.3 million.
Lodge Keeper continued to manage the 24 hotels it previously managed in addition
to managing the five properties previously managed by the Company. Lodge Keeper
also manages all the properties subsequently acquired by the Company such as the
eight hotels acquired in September 1997 from Hatfield Inns, LLC ("Hatfield") and
the seven properties leased in June 1998 from Host Funding, Inc. ("Host").
At its June 26, 1997 annual meeting of shareholders, the Company received
authorization to issue up to 200,000 shares of preferred stock. The Company
issued $3 million of such preferred stock in connection with the Hatfield
acquisition which was completed in September 1997.
9
<PAGE>
First Half 1998
The conversion of the Hatfield properties to Country Hearth Inns was completed
in 1997 and the Company began 1998 with 16 hotel properties owned, 36 properties
managed, and 29 Country Hearth Inn franchise properties open and operating.
Since the beginning of the year, four additional Country Hearth Inn franchise
properties have opened and an additional eighteen are presently under
development, six of which are expected to open in the second half of 1998.
The above described properties under development include the construction of
Company owned Country Hearth Inns in Nicholasville and Eddyvlle, Kentucky. Loan
commitments are in place to fund the major portion of the construction costs for
both of these projects.
Also included is the renovation and conversion of two Lodge Keeper Ohio
properties to Country Hearth Inns. The renovation of the 88-room hotel in
Amherst has already been completed and the renovation and conversion of the
67-room Port Clinton hotel is expected to be completed in the fourth quarter of
1998.
Capital expenditures in the first half of 1998 amounted to approximately $1.7
million. Construction and other loan commitments provided approximately $633,000
of these funds. The remainder was provided by a portion of the proceeds from the
Company's December 1997 sale of convertible debentures.
In May 1998, the Company acquired a 121-room hotel in Norcross, Georgia (the
"Norcross Hotel") for approximately $4 million, most of which being financed by
the assumption of a $3.8 million first mortgage loan.
In June 1998, the Company entered into lease agreements for the operation and
management of seven hotels owned by Host Funding, Inc.("Host"). The leased
properties are operated as "Sleep Inns" and "Super 8" hotels; are located in
Florida, Illinois, Missouri, Kentucky, and Mississippi; and aggregate 450 rooms.
For the leasehold interests, the Company paid Host approximately $900,000
(consisting of 53,647 shares of the Company's $0.01 par value common stock and
the remainder in cash). Additionally, the Company purchased 62,212 shares of
Host common stock by executing notes aggregating $288,000 which are due in June
1999. Such Host shares represent security deposits against future rent
obligations.
RESULTS OF OPERATIONS
Periods ended June 30, 1998 and 1997
Hotel revenues amounted to $7,014,843 and $12,047,433 for the three month and
six month periods ended June 30, 1998, respectively, as opposed to $3,426,734
and $5,714,906 during the same periods in 1997. Hotel operating profits for the
1998 three and six month periods amounted to $2,013,073 and $3,061,796,
respectively, versus $751,507 and $1,451,440 in 1998. Such changes are primarily
attributable to the acquisition of Lodge Keeper in May 1997, the Hatfield
acquisition in September 1997, the acquisition of the Norcross Hotel in May
1998, and the Host leases in June 1998.
10
<PAGE>
In the aggregate, operating profits for hotels which were owned in both of the
first halves of 1997 and 1998 increased. First half 1998 results of the acquired
hotels were in line with management's expectations.
The properties presently owned by the Company are subject to a significant
amount of seasonal fluctuation. Most of the properties are expected to be
profitable during the third quarter and will probably not be profitable during
the fourth quarter. On an annual basis, all properties are expected to satisfy
their debt and other cash obligations in addition to providing the Company with
management and/or franchise fees.
Note receivable interest income continued to decline as a result of decreases in
the note receivable portfolio. The first half of 1997 included investment income
of approximately $450,000 as a result of the Industrial Revenue Bonds which were
called.
Other income in the first half 1997 included the $800,000 note sale gain
previously discussed. Other income in the second quarters of 1998 and 1997
includes Country Hearth Inn franchise fees of approximately $231,000 and
$127,000, respectively, excluding fees from Company owned properties which are
eliminated. Management expects franchise fee income to increase as more
franchised properties are opened.
Other income in the second quarter of 1997 also includes approximately $250,000
relating to favorable settlements of "Old Buckhead" claims. Further such gains
are not expected. Other income in the second quarter of 1998 includes a gain of
approximately $250,000 from the sale of a hotel leasehold interest formerly held
by Lodge Keeper. Other such leasehold interests are presently held for sale. The
net book value of such interests is not significant and management does not make
any assurances that additional sales will be closed.
Other operating and administrative expenses in the second quarter of 1998
increased $382,285 versus the same period in 1997. Most of this increase
resulted from the acquisition of Lodge Keeper in May 1997. The acquisition of
the Norcross Hotel in May 1998 and the Host leasehold interests in June 1998 did
not result in significant increases in Lodge Keeper overhead costs.
Property related depreciation and interest expense in the first half of 1998
increased proportionately to the revenue increases associated with the Hatfield
and Lodge Keeper acquisitions. The Company also recognized $200,000 of interest
expense on its convertible debentures issued in December 1997.
Management believes the Company has adequate resources for the completion of its
present acquisition and development commitments. Management also believes the
Company has adequate liquidity for purposes of funding seasonal cash flow
shortfalls and does not anticipate the need for additional financing for
operating purposes.
The Company has made public announcements of its intention to expand the
development of its 40-room prototype hotels into rural markets. This expansion
is being effected through franchise development agreements with third parties,
partial participations with third party developers via joint ventures and
leases, and by purely Company owned projects. The continued expansion of these
properties is contingent on the availability of construction and permanent
financing, among many other contingencies. Also,
11
<PAGE>
the Company may need to raise additional equity capital in order to facilitate
this growth. No assurances can be made regarding these issues.
YEAR 2000 ISSUES
Many existing computer programs use only two digits to identify a year in the
date field. These programs were designed and developed without considering the
impact of the upcoming change in the century. If not corrected, many computer
applications could fail or create erroneous results by or at the Year 2000. The
Year 2000 issue affects virtually all companies and organizations.
The Company has reviewed its computer systems and has determined that most of
the systems are already Year 2000 compliant (i.e. no modifications are
necessary). Specifically, the Company's computerized accounting, payroll,
receivable, and payable systems, which constitute the vast majority of the
Company's computerized systems, do not need to be replaced or reprogrammed.
Certain non-interfaced less critical systems may require replacement or
modification. Such systems include cash registers, electronic locks, credit card
machines, and telephone systems. The Company expects to expend less than $50,000
to bring such systems into compliance and expects that such compliance will be
achieved prior to the end of the third quarter of 1999.
RISK FACTORS
This Form 10-QSB contains forward looking statements that involve risks and
uncertainties. Statements contained in this Form 10-QSB that are not historical
facts are forward looking statements that are subject to the safe harbor created
by the Private Securities Litigation Reform Act of 1995. The Company's actual
results may differ significantly and materially from the results indicated by
such forward looking statements and by past results. For a discussion of risk
factors, see the "RISK FACTOR" section contained in the Company's Registration
Statement on Form S-3 (File No. 333-37691).
12
<PAGE>
PART II - OTHER INFORMATION
Item 2. Changes in Securities
On June 3, 1998, the Registrant issued 53,647 unregistered shares of its $.01
par value common stock to Host Funding, Inc., an "accredited investor" ("Host").
Such shares were issued as partial consideration for the Registrant's
acquisition of leasehold interests in seven hotels owned by Host. The
consideration received by the Registrant was estimated to have a fair market
value equal to the fair market value of the shares issued.
The exemption from registration was pursuant to Section 4(2) of the Securities
Act of 1933, as amended.
Item 4. Submission of Matters to a Vote of Security Holders
The Company held its Annual Meeting of Stockholders on May 28, 1998. The purpose
of the meeting was to consider and vote upon the following matters:
1. To elect five directors to serve until the next annual
meeting of stockholders and until their successors are
elected and have qualified.
2. To consider a proposal to amend the Company's
Certificate of Incorporation to increase the number of
authorized shares of the Company's Common Stock from
3,000,000 shares to 5,000,000 shares.
3. To consider a proposal to approve the Company's 1998
Employee Stock Option Plan.
4. To transact such other business as may have properly come
before the meeting.
The Company's five incumbent directors (Robert M. Miller, Douglas C.
Collins, William K. Stern, Robert B. Lee, and Steven A. Van Dyke) were
nominated for re-election. Each of the nominees was elected as follows:
Votes For Votes Withheld
---------- --------------
Robert M. Miller 1,666,775 8,896
Douglas C. Collins 1,667,944 7,727
William K. Stern 1,667,307 8,364
Robert B. Lee 1,668,075 7,596
Steven A. Van Dyke 1,667,275 8,396
13
<PAGE>
The proposal to amend the Company's Certificate of Incorporation to increase the
number of authorized shares of the Company's Common Stock from 3,000,000 shares
to 5,000,000 shares was approved as follows:
Votes
----------
For 1,608,920
Against 65,235
Abstentions 1,516
The proposal to approve the Company's 1998 Employee Stock Option Plan was
approved as follows:
Votes
----------
For 1,601,166
Against 73,047
Abstentions 1,458
No other matters came before the meeting.
14
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Index
<TABLE>
<CAPTION>
Exhibit Description
<S> <C> <C>
3(i) Articles of Incorporation.(Incorporated by reference to
Exhibit 3(i) to the Registrant's Registration Statement on
Form 10-SB (No.0-22132) which became effective on November
22, 1993.)
3(i)(a) Certificate of Amendment of Certificate of
Incorporation. (Incorporated by reference to Exhibit
3(i)(a) to the Registrant's Annual Report on Form
10-KSB for the fiscal year ended December 31, 1994.)
3(i)(b) Certificate of Amendment of Certificate of
Incorporation. (Incorporated by reference to Appendix
"A" to the Registrant's Definitive Proxy Statement
filed with the Securities and Exchange Commission on
June 9, 1997.)
3(i)(c) Certificate of Amendment of Certificate of
Incorporation. (Incorporated by reference to Appendix
"A" to the Registrant's Definitive Proxy Statement
filed with the Securities and Exchange Commission on
May 5, 1998.)
3(ii) By-Laws - Amended and Restated as of June 27, 1994.
(Incorporated by reference to Exhibit 3(ii) to the
Registrant's Annual Report on Form 10-KSB for the
fiscal year ended December 31, 1994.)
4(i) Certificate of Designation, Preferences and Rights of
Series A Preferred Stock of the Registrant.
(Incorporated by reference to Exhibit 3(i)(c) to the
Registrant's Quarterly Report on Form 10-QSB for the
quarter ended September 30, 1997.)
10.9 Buckhead America Corporation 1998 Employee Stock Option Plan.
(Incorporated by reference to Annex "1" to the Registrant's
Definitive Proxy Statement filed with the Securities and
Exchange Commission on May 5, 1998.)
11 Statement re: Computation of per share earnings
27 Financial Data Schedule
</TABLE>
(b) Reports on Form 8-K
The Company has not filed any reports on Form 8-K during the quarter for
which this report is filed.
15
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Buckhead America Corporation
(Registrant)
Date: August 14, 1998 /s/Douglas C. Collins
Douglas C. Collins
President and Chief
Executive Officer
Date: August 14, 1998 /s/Robert B. Lee
Robert B. Lee
Senior Vice President and
Chief Financial Officer
16
Exhibit 11
Statement re: Computation of Per Share Earnings
<TABLE>
<CAPTION>
Six Months Six Months Three Months Three months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
Basic Net Income (Loss) per Common Share:
- ---------------------------------------- ---------- ---------- ---------- ----------
Numerator:
<S> <C> <C> <C> <C>
Net income (loss) for the period $ (271,220) 1,133,989 117,966 19,747
Series A Preferred Stock Dividends (150,000) - (75,000) -
-------- --------------- ---------- --------
Net income (loss) attributable to
common shares $ (421,220) 1,133,989 42,966 19,747
=========== ========= ========== ==========
Denominator:
Actual common shares outstanding:
Beginning of period 1,897,780 1,771,127 1,897,780 1,771,127
End of period 1,951,427 1,872,447 1,951,427 1,872,447
Weighted average for the period
(Based on the actual days which
the incremental shares, if any,
were outstanding) 1,906,033 1,800,632 1,914,287 1,830,138
========= ========= ========= =========
Basic net income (loss) per common share $ (0.22) 0.63 0.02 0.01
====== ===== ==== ====
Diluted Net Income (Loss) per Common Share:
- ------------------------------------------
Numerator:
Net income (loss) attributable to
common shares $ (421,220) 1,133,989 42,966 19,747
=========== ========= ========== ==========
Denominator:
Weighted average common shares
outstanding 1,906,033 1,800,632 1,914,287 1,830,138
Effect of common share equivalents
resulting from "in-the-money" stock
options outstanding during the period 29,308 54,158 58,616 57,447
------------ ------------ ----------- -----------
Weighted average number of common and
common equivalent shares used to
calculate diluted net income (loss)
per common share 1,935,341 1,854,790 1,972,903 1,887,585
========= ========= ========= =========
Diluted net income (loss) per common share $ (0.22) 0.61 0.02 0.01
====== ===== ==== ====
</TABLE>
Note: The assumed conversion of the convertible debentures and the
Series A preferred stock were excluded from the 1998 computations
of diluted net income (loss) per common share because to do so
would have been antidilutive for the periods presented.
17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FINANCIAL STATEMENTS OF BUCKHEAD AMERICA CORPORATION FOR THE SIX
MONTHS ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 3,108
<SECURITIES> 191
<RECEIVABLES> 1,595
<ALLOWANCES> 36
<INVENTORY> 0
<CURRENT-ASSETS> 5,947
<PP&E> 42,671
<DEPRECIATION> 3,389
<TOTAL-ASSETS> 57,153
<CURRENT-LIABILITIES> 4,906
<BONDS> 31,894
0
3,000
<COMMON> 20
<OTHER-SE> 16,312
<TOTAL-LIABILITY-AND-EQUITY> 57,153
<SALES> 12,047
<TOTAL-REVENUES> 12,909
<CGS> 8,986
<TOTAL-COSTS> 9,858
<OTHER-EXPENSES> 2,057
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,414
<INCOME-PRETAX> (421)
<INCOME-TAX> (150)
<INCOME-CONTINUING> (271)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (271)
<EPS-PRIMARY> (.22)
<EPS-DILUTED> (.22)
</TABLE>
