<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1996
or
[ ] 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: 0-22422
POLLO TROPICAL, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 65-0100964
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
7300 N. KENDALL DRIVE, 8TH FLOOR, MIAMI, FLORIDA 33156
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 305/670-7696
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 May 10, 1996: 8,082,949 shares of common stock, par
value $.01.
Page 1 of 13
<PAGE> 2
POLLO TROPICAL, INC. AND SUBSIDIARIES
INDEX TO FORM 10-Q
QUARTER ENDED MARCH 31, 1996
<TABLE>
Page
Part I - Financial Information
- ------------------------------
<S> <C>
Condensed Consolidated Balance Sheets
December 31, 1995 and March 31, 1996............................ 3
Condensed Consolidated Statements of Income
Quarters Ended April 2, 1995 and March 31, 1996................. 4
Condensed Consolidated Statements of Cash Flows
Quarters Ended April 2, 1995 and March 31, 1996................. 5
Notes to Condensed Consolidated Financial Statements............. 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations............................. 7
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K........................ 12
Signature Page................................................... 13
</TABLE>
Page 2 of 13
<PAGE> 3
POLLO TROPICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
December 31, March 31,
1995 1996
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents................................................................ $ 691,324 $ $848,107
Inventories.............................................................................. 331,969 300,532
Prepaid expenses......................................................................... 470,605 575,187
Prepaid income taxes..................................................................... 152,680 265,693
Other current assets..................................................................... 245,656 260,085
----------- -----------
Total current assets.................................................................... 1,892,234 2,249,604
PROPERTY AND EQUIPMENT, at cost, less accumulated
depreciation and amortization ........................................................... 41,731,694 43,186,282
DEFERRED RESTAURANT PRE-OPENING COSTS, net ................................................ 406,442 417,599
INTANGIBLE ASSETS, net .................................................................... 369,899 369,651
LEASEHOLD ACQUISITION COSTS, net .......................................................... 1,519,262 1,496,751
DEPOSITS AND DEFERRED COSTS ON FUTURE
RESTAURANT LOCATIONS ..................................................................... 127,340 15,680
OTHER ASSETS............................................................................... 777,711 751,613
----------- -----------
$46,824,582 $48,487,180
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable......................................................................... $ 3,526,265 $ 3,162,987
Accrued liabilities...................................................................... 1,295,899 1,565,527
Current maturities of long-term debt..................................................... 77,352 78,258
Accrued restaurant closure expenses...................................................... 1,399,516 1,342,883
----------- -----------
Total current liabilities............................................................... 6,299,032 6,149,655
----------- -----------
LONG-TERM DEBT, net of current maturities ................................................. 11,971,648 13,071,055
----------- -----------
DEFERRED RENT.............................................................................. 1,192,909 1,242,038
----------- -----------
DEFERRED FRANCHISE FEE INCOME.............................................................. 597,500 570,000
----------- -----------
DEFERRED INCOME TAXES...................................................................... 804,238 1,103,034
----------- -----------
SHAREHOLDERS' EQUITY:
Preferred stock.......................................................................... -- --
Common stock............................................................................. 80,479 80,579
Additional paid-in capital............................................................... 21,545,990 21,565,478
Retained earnings........................................................................ 4,332,786 4,705,341
----------- -----------
Total shareholders' equity.............................................................. 25,959,255 26,351,398
----------- -----------
$46,824,582 $48,487,180
=========== ===========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
Page 3 of 13
<PAGE> 4
POLLO TROPICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
For the Quarter Ended
----------------------------
April 2, March 31,
1995 1996
------------ -----------
<S> <C> <C>
REVENUES:
Restaurant sales................................................................................. $14,139,058 $14,496,368
Franchise revenues............................................................................... 60,007 97,961
----------- ----------
14,199,065 14,594,329
----------- ----------
OPERATING EXPENSES:
Cost of sales.................................................................................... 5,011,877 5,223,404
Restaurant payroll............................................................................... 3,369,185 3,694,407
Other restaurant operating expenses.............................................................. 2,240,174 2,791,982
General and administrative....................................................................... 1,202,899 1,363,054
Depreciation and amortization of property and equipment.......................................... 473,362 528,042
Amortization of deferred restaurant pre-opening costs............................................ 380,986 128,727
Other amortization............................................................................... 24,032 28,023
----------- ----------
12,702,515 13,757,639
----------- ----------
INCOME FROM OPERATIONS............................................................................ 1,496,550 836,690
----------- ----------
OTHER INCOME (EXPENSE):
Interest, net.................................................................................... (212,990) (246,992)
Other income (expense), net...................................................................... (158,877) 11,101
----------- ----------
(371,867) (235,891)
----------- ----------
INCOME BEFORE INCOME TAXES........................................................................ 1,124,683 600,799
PROVISION FOR INCOME TAXES........................................................................ 422,881 228,244
----------- ----------
NET INCOME........................................................................................ $ 701,802 $ 372,555
=========== ==========
NET INCOME PER COMMON SHARE....................................................................... $ 0.09 $ 0.05
=========== ==========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING............................................................................... 8,101,887 8,140,124
=========== ==========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
Page 4 of 13
<PAGE> 5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Quarter Ended
--------------------------------
April 2, March 31,
1995 1996
------------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income............................................................. $ 701,802 $ 372,555
------------- ------------
Adjustment to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization......................................... 878,380 684,792
Loss on disposal of property and equipment............................ -- 7,731
Deferred rent......................................................... 69,170 49,129
Amortization of deferred compensation................................. -- 1,929
Deferred income taxes................................................. 355,003 298,796
Changes in operating assets and liabilities:
(Increase) decrease in-
Inventories......................................................... 38,517 31,437
Prepaid expenses.................................................... (60,854) (104,582)
Prepaid income taxes................................................ -- (101,153)
Other current assets................................................ (25,530) (14,429)
Deferred restaurant pre-opening costs............................... (159,137) (139,884)
Other assets........................................................ 126,607 26,098
Increase (decrease) in-
Accounts payable and accrued liabilities............................ 322,372 (93,650)
Deferred franchise fee income....................................... (12,500) (27,500)
Accrued restaurant closure expenses................................. -- (56,633)
Income taxes payable................................................ (47,112) --
------------- ------------
Total adjustments................................................... 1,484,916 562,081
------------- ------------
Net cash provided by operating activities........................... 2,186,718 934,636
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures................................................... (1,716,525) (1,990,361)
Payment for intangible assets.......................................... (1,803) (3,364)
Payment for leasehold acquisition costs................................ -- (1,900)
(Increase) decrease in deposits and deferred costs on future
restaurant locations................................................. (627,504) 111,660
------------- ------------
Net cash used in investing activities............................... (2,345,832) (1,883,965)
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt............................... -- 131,677,000
Principal payments on long-term debt................................... (37,500) (130,576,687)
Proceeds from exercise of stock options................................ -- 5,799
------------- ------------
Net cash (used in) provided by financing
activities........................................................ (37,500) 1,106,112
------------- ------------
Net (decrease) increase in cash and cash
equivalents....................................................... (196,614) 156,783
Cash and cash equivalents, beginning of period......................... 688,964 691,324
------------- ------------
Cash and cash equivalents, end of period............................... $ 492,350 $ 848,107
============= ============
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION:
Cash paid during the period for -
Interest, net....................................................... $ 253,697 $ 250,298
============= ============
Income taxes........................................................ $ 115,000 $ 18,086
============= ============
Tax benefit from stock option recorded to
additional paid-in capital........................................ $ -- $ 11,860
============= ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
Page 5 of 13
<PAGE> 6
POLLO TROPICAL, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996
(UNAUDITED)
(1) BASIS OF PRESENTATION
The condensed consolidated balance sheet as of December 31, 1995, which has
been derived from audited financial statements, and the unaudited interim
condensed financial statements included herein, have been prepared pursuant to
the rules and regulations of the Securities and Exchange Commission. Certain
information and note disclosures normally included in annual financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to those rules and regulations,
although the Company believes that the disclosures made herein are adequate to
make the information presented not misleading. It is suggested that these
financial statements be read in conjunction with the financial statements and
the notes thereto included in the Company's Annual Report on Form 10-K (File
No. 0-22422) for the year ended December 31, 1995.
In the opinion of management, the accompanying unaudited condensed consolidated
financial statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the financial position of the
Company and the results of operations and cash flows for the periods indicated.
Results of operations for the quarter ended March 31, 1996 are not necessarily
indicative of the results to be expected for the year ending December 29, 1996.
(2) ACCOUNTING POLICIES
During interim periods the Company follows the accounting policies set forth in
its consolidated financial statements included in its Annual Report on Form
10-K (File No. 0-22422). Reference should be made to such financial
statements for information on such accounting policies and further financial
details.
Page 6 of 13
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The number of Company-owned restaurants open for the entire year grew
rapidly from 8 in 1993 to 31 in 1995 in the Company's core markets of South
Florida and Orlando. During Fiscal 1995, the Company entered three expansion
markets (Tampa, Chicago, and New York) opening a total of five Company-owned
restaurants and closed two underperforming restaurants, incurring costs for
restaurant closure expenses in the third quarter of 1995. In the first quarter
ended March 31, 1996, the Company opened one additional restaurant in the
expansion markets. In the second quarter of Fiscal 1996, through the date of
this filing, the Company has opened two restaurants within its core markets,
bringing the total Company-owned restaurants currently operating to 39. The
Company anticipates opening one additional restaurant within its core markets
in the second quarter of 1996.
The Company's market penetration strategy, competitive unit openings
and intense industry competition, amongst other factors, contributed to
moderate same restaurant sales declines for Company-owned restaurants operated
during comparable periods of 1995 and 1994. However, the Company's restaurants
that were operated for the entire first quarter of 1996 and 1995 experienced a
reduction in the decline in same restaurant sales. The Company believes that
this improvement in same restaurant sales trends is primarily due to the
reduced impact of new restaurant cannibalization, and more effective marketing
strategies and promotions. Average unit sales volumes in the expansion markets
are significantly lower than the average unit sales volumes in the Company's
core markets. The higher food, labor, and other operating costs the Company has
experienced in the expansion restaurants have adversely affected operating
margins and the Company's overall profitability.
The Company incurs pre-opening costs in connection with the opening of
each restaurant. Pre-opening costs, which include payroll, hiring and training
expenses, advertising and all other direct operating costs that are incurred
prior to the opening of a new restaurant, are amortized over the first 12 months
of a restaurant's operation and have decreased as a percentage of restaurant
sales as a result of the Company's moderation in its level of expansion.
In December 1994, the Company's first franchised restaurant opened,
five additional franchised restaurants were opened in 1995, and two additional
franchised restaurants were opened during the quarter ended March 31, 1996.
In the second quarter, one franchised restaurant closed bringing the total
franchised restaurants to seven through the date of this filing. The Company
anticipates the opening of approximately six additional franchised restaurants
during the remainder of Fiscal 1996. The Company continues to seek to procure
new area development agreements in Latin America, the Caribbean and the United
States with qualified franchisees and anticipates continued growth in franchise
revenues. The Company receives exclusivity fees upon signing of area
development agreements. Such fees are recognized as revenue when franchised
restaurants open or when such agreements terminate. Additionally, when
franchised restaurants become operational the Company receives continuing
royalties based on sales. As the Company does not control the timing of
franchise openings and/or terminations of agreements, the recognition of
franchise revenues cannot be accurately predicted and, therefore, may fluctuate
significantly on a quarter to quarter basis.
Page 7 of 13
<PAGE> 8
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated certain selected
income statement data as a percentage of restaurant sales except general and
administrative expense, which is shown as a percentage of total revenues, and
certain restaurant data:
<TABLE>
QUARTER ENDED
-------------
APRIL 2, MARCH 31,
-------- ---------
1995 1996
-------- ---------
<S> <C> <C>
INCOME STATEMENT DATA:
Cost of sales ........................... 35.5% 36.0%
Restaurant payroll ...................... 23.8 25.5
Other restaurant operating expenses ..... 15.8 19.3
General and administrative .............. 8.5 9.3
Depreciation and amortization of property
and equipment ......................... 3.3 3.6
Amortization of deferred restaurant
pre-opening costs ..................... 2.7 .9
Other amortization ...................... .2 .2
Income from operations .................. 10.6 5.8
Other income (expense), net ............. (2.6) (1.6)
Net income .............................. 5.0 2.6
RESTAURANT DATA:
Aggregate restaurant sales increase from
prior period .......................... 73% 3%
Number of restaurants open at end of
period ................................ 34 37
</TABLE>
Page 8 of 13
<PAGE> 9
QUARTER ENDED MARCH 31, 1996 COMPARED TO QUARTER ENDED APRIL 2,1995
Restaurant Sales. Restaurant sales for the quarter ended March 31,
1996 increased $.4 million (3%) to $14.5 million from $14.1 million for the
comparable quarter of 1995. This increase was due to an increased number of
restaurants open during the quarter ended March 31, 1996 as compared to the
same quarter of the prior year. This increase was partially offset by a slight
sales decrease in restaurants open for the entire quarter for both years.
During the current quarter 36 restaurants operated for the full quarter, and one
restaurant operated for part of the quarter as compared to the prior year
quarter when 33 restaurants operated for the full quarter and one restaurant
operated for only part of the quarter.
Franchise Revenues. Franchise revenues for the quarter ended March 31,
1996 increased $38,000 from $60,000 for the quarter ended April 2, 1995 to
$98,000 for the quarter ended March 31, 1996. Franchise revenues generally
consist of initial franchise fees which are recognized when a restaurant
opens, continuing royalties and fees from operating franchised restaurants, and
forfeiture of exclusivity fees when area development agreements are terminated.
During the quarter ended March 31, 1996, two franchised restaurants were
opened in Puerto Rico and the Company anticipates the opening of approximately
six additional franchised restaurants during the remainder of Fiscal 1996.
Cost of Sales. Cost of sales which consists of food, beverage and
paper and supply costs, increased .5% as a percentage of restaurant sales to
36.0% for the quarter ended March 31, 1996 from 35.5% for the comparable
quarter of the prior year. This change was due to an increase of .7% in food
costs as a percentage of restaurant sales which was partially offset by a
decrease of .2% in the cost of paper as a percentage of restaurant sales. The
increase in food costs is primarily the result of higher market prices for
chicken and from higher food cost in lower volume restaurants which experience
greater waste. Management expects that continued higher costs for chicken will
adversly affect the relationship of cost of sales to restaurant sales during
the remainder of Fiscal 1996.
Restaurant Payroll. Restaurant payroll expense, which consists of
restaurant management and hourly employee wages, payroll taxes, workers'
compensation insurance and group health insurance, increased 1.7% as a
percentage of restaurant sales to 25.5% for the quarter ended March 31, 1996
from 23.8% for the same period of the prior year. This increase was primarily
due to the new restaurants in the expansion markets which have lower volumes
and therefore higher payroll costs as a percentage of restaurant sales.
Other Restaurant Operating Expenses. Other restaurant operating
expenses consist of all restaurant operating costs other than payroll expenses
and include occupancy costs, utilities and advertising expenses. These
expenses increased 3.5% as a percentage of restaurant sales to 19.3% for the
quarter ended March 31, 1996, from 15.8% for the same period of the prior year.
The largest component of this change was advertising expense, which increased
from $565,000 to $760,000 and increased as a percentage of restaurant sales to
5.2% from 4.0% during the same period of the prior year. The increase was a
result of increased promotional activities in the core markets, and for
expenditures necessary to conduct promotional activities in the expansion
markets. The next largest component of the change in other restaurant operating
expenses was occupancy costs, which includes rent expense and real and personal
property taxes, which increased to 5.1% for the quarter ended March 31, 1996
from 4.3% for the same period of the prior year. This increase in occupancy
costs was due to a larger portion of Company-owned restaurants being leased at
the quarter ended March 31, 1996 as compared to the same period of the prior
year, as well as higher real and personal property taxes, and lower average
sales volumes in the Company's restaurants. For the quarter ended April 2,
1995 the Company had 19 leased restaurants as compared to 24 leased restaurants
at the quarter ended March 31, 1996. Another component of the increase in
other restaurant operating expenses as a percentage of restaurant sales was an
increase in utilities expense which increased as a percentage of restaurant
sales volume to 4.6% for the quarter ended March 31, 1996 from 4.1% for the same
period of the prior year. This increase was attributable to lower average sales
in the Company's restaurants.
Page 9 of 13
<PAGE> 10
General and Administrative Expenses. General and administrative ("G & A")
expenses for the quarter ended March 31, 1996 increased as a percentage of
revenues by .8% to 9.3% from 8.5% for the same period of the prior year. The
dollar amount of G & A expense increased from $1,202,899 to $1,363,054
primarily as the result of expenditures incurred in assisting and support of
franchisees in the opening of their restaurants, and for outside consulting
fees.
Depreciation and Amortization of Property and Equipment. Depreciation and
amortization of property and equipment increased by .3% as a percentage of
restaurant sales for the quarter ended March 31, 1996 as compared to the same
period of the prior year. The increase was primarily the result of
depreciation of fixed assets associated with the Company's five new restaurants
which opened during the fiscal year ended December 31, 1995. The Company
anticipates that depreciation and amortization of property and equipment as a
percentage of restaurant sales will remain higher during the remainder of
Fiscal 1996 as compared to Fiscal 1995 as a result of the new restaurants
opened during 1995 along with new restaurant openings planned for the
remainder of 1996.
Amortization of Deferred Restaurant Pre-Opening Costs. Amortization
of deferred restaurant pre-opening costs decreased by 1.8% to .9% from 2.7% as
a percentage of restaurant sales for the quarter ended March 31, 1996 as
compared to the same period of the prior year. During the quarter ended April
2, 1995, 19 restaurants were incurring amortization of deferred preopening
restaurant costs compared to 6 restaurants for the quarter ended March 31,
1996. This decrease was the result of fewer new restaurants being opened
during the latest 12 months as compared to the 12 month period ended April 2,
1995. The Company anticipates that amortization of deferred restaurant
pre-opening costs as a percentage of restaurant sales will decline during the
remainder of Fiscal 1996 as compared to Fiscal 1995 as the result of the
Company's modest growth in Fiscal 1995.
Other Amortization. Other amortization consists of amortization of
intangibles such as trademarks, prepaid loan costs, organization costs and
leasehold acquisition costs. Other amortization remained level at .2% as a
percentage of restaurant sales for the quarter ended March 31, 1996 as compared
to the same quarter of the prior year.
Other Income (Expense). The Company incurred interest costs of $270,154
during the quarter ended March 31, 1996 of which $19,856 was capitalized as
construction cost in accordance with the provisions of Financial Accounting
Standards Board Statement No. 34. Such interest cost was further offset by
$3,306 in interest income. During the same quarter of the prior year, the
Company incurred interest costs of $265,980 of which $45,922 was capitalized
as construction cost. Such interest cost was further offset by $7,068 in
interest income.
Page 10 of 13
<PAGE> 11
LIQUIDITY AND CAPITAL RESOURCES
As is customary in the restaurant industry, the Company is able to operate
with a working capital deficit because its restaurant sales are in cash, it
receives trade credit from its vendors and its operations do not require
significant investment in receivables or inventories. Historically, the
Company has used the majority of its available capital for the development of
new restaurants. Consequently, prior to the Initial Public Offering and since
the quarter ended April 3, 1994, the Company has operated with working capital
deficits.
During the quarter ended March 31, 1996, the Company generated an
aggregate of $934,636 of cash flow from operations. During such period, the
Company opened one new restaurant. Capital expenditures for this restaurant
and for development of restaurants to be opened in the future, totaled $2.0
million during the quarter. The estimated capital needed to complete the
development of the remaining restaurants as of the quarter ended March 31,
1996 was approximately $0.6 million.
The Company's principal capital requirement will continue to be funding
the development of new restaurants. Since the end of the quarter, Pollo
Tropical has opened two new restaurants and plans to open one additional
restaurant during the second quarter of 1996.
The Company has a $25 million line of credit facility from a commercial
bank, which provides for advances of up to $20,000,000 until June 30, 1996, and
thereafter, up to $25,000,000; however, the lender has no obligation to make
further advances after July 13, 1998. Borrowing capacity under the Loan can
also be used to secure letters of credit, $700,000 of which were outstanding as
of March 31, 1996. As of March 31, 1996, there was an additional borrowing
capacity under the credit line of $6,432,000, and as of the date of this filing
the available borrowing capacity under the line was approximately the same.
The Company anticipates that the funds under its existing credit facility
combined with cash flow from operations will be sufficient to fund its new
restaurant openings throughout the first quarter of 1997.
Page 11 of 13
<PAGE> 12
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit
No. Description
------- -----------
27.1 Article 5 of Regulation S-X
Financial Data Schedule for
1st Quarter 10-Q (for SEC use only)
(b) During the quarter ended March 31, 1996, the Company did not file
any reports on Form 8-K.
All other items under Part II are not applicable.
Page 12 of 13
<PAGE> 13
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.
POLLO TROPICAL, INC.
\s\Larry J. Harris
----------------------------
LARRY J. HARRIS
Chief Executive Officer
\s\William Carl Drew
---------------------------
WILLIAM CARL DREW
Chief Financial Officer
\s\Moez Lakhani
---------------------------
MOEZ LAKHANI
Controller and Principal
Accounting Officer
DATE: May 15, 1996
Page 13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED
CONSOLIDATED BALANCE SHEETS, CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 848,107
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 300,532
<CURRENT-ASSETS> 2,249,604
<PP&E> 43,186,282
<DEPRECIATION> 0
<TOTAL-ASSETS> 48,487,180
<CURRENT-LIABILITIES> 6,149,655
<BONDS> 0
0
0
<COMMON> 80,579
<OTHER-SE> 26,270,819
<TOTAL-LIABILITY-AND-EQUITY> 48,487,180
<SALES> 14,496,368
<TOTAL-REVENUES> 14,594,329
<CGS> 5,223,404
<TOTAL-COSTS> 13,757,639
<OTHER-EXPENSES> 11,101
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 246,992
<INCOME-PRETAX> 600,799
<INCOME-TAX> 228,244
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 372,555
<EPS-PRIMARY> .05
<EPS-DILUTED> 0
</TABLE>
