U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1999
Commission File Number: 0-24058
WESTERN COUNTRY CLUBS, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-1131343
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1601 NW Expressway, Suite 1610
Oklahoma City, Oklahoma 73118
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (405) 848-0996
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 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 at least the
past 90 days. Yes [X] No [ ]
Shares of Common Stock, $.01 par value,
outstanding as of March 31, 1999 3,734,721
Traditional Small Business Disclosure Format: Yes [X] No [ ]
<PAGE>
WESTERN COUNTRY CLUBS, INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1 Financial Statements
Consolidated Condensed Balance Sheet - March 31, 1999
Consolidated Condensed Statements of Income -
For the Three Months Ended March 31, 1999 and 1998
Consolidated Condensed Statements of Stockholders Equity -
For the Three Months Ended March 31, 1999 and 1998
Consolidated Condensed Statements of Cash Flows -
For the Three Months Ended March 31, 1999 and 1998
Notes to Consolidated Condensed Financial Statements
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II. OTHER INFORMATION
Item 1 Legal Proceedings
Item 2 Exhibits and Reports on Form 8-K
<PAGE>
WESTERN COUNTRY CLUBS, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(UNAUDITED)
MARCH 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Current assets:
Cash $ 263,642
Accounts receivable 36,995
Notes and loans receivable 823,128
Notes receivable from related parties 156,340
Inventories 67,971
Prepaid expenses 70,746
Deferred income taxes 102,000
-------------
Total current assets 1,520,822
-------------
PROPERTY AND EQUIPMENT, at cost
Land and improvements 77,010
Leasehold improvements 1,987,728
Equipment 528,388
Furniture and fixtures 372,310
-------------
2,965,436
Less accumulated depreciation (1,191,419)
-------------
Net property and equipment 1,774,017
-------------
OTHER ASSETS:
Deferred income taxes 265,740
Goodwill, net of amortization 7,420
Deposits and other 91,997
Investment 57,400
-------------
Total other assets 422,557
-------------
Total assets $ 3,717,396
=============
</TABLE>
See accompanying notes.
<PAGE>
WESTERN COUNTRY CLUBS, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(UNAUDITED)
MARCH 31, 1999
<TABLE>
<CAPTION>
<S> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 351,227
Accrued expenses 335,942
Notes payable - related parties 71,447
Notes payable 589,038
-------------
Total current liabilities 1,347,654
-------------
Minority Interests 337,933
-------------
Stockholders' Equity:
Preferred Stock (Note 2) 400,000
Common Stock, $.01 par value; 25,000,000 shares
authorized, 3,734,721 shares issued and outstanding 37,347
Additional paid in capital 4,363,739
Retained (deficit) (2,769,277)
-------------
Total stockholders' equity 2,031,809
-------------
Total liabilities and stockholders' equity $ 3,717,396
=============
</TABLE>
See accompanying notes.
<PAGE>
WESTERN COUNTRY CLUBS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1999 1998
------------ ------------
<S> <C> <C>
REVENUES
Beverage and food sales $ 924,375 $ 828,182
Admission fees 361,827 341,490
Other revenues 98,760 92,378
Sale of partnership
interest (Note 3) -- 220,000
Sale of assets (Note 3) 100,000 64,861
------------ ------------
Total revenues 1,484,962 1,546,911
------------ ------------
COSTS AND EXPENSES:
Cost of products and services 313,663 284,609
Depreciation and amortization 67,726 67,448
Interest 8,103 13,019
General and administrative
expenses 920,880 782,312
------------ ------------
Total costs and expenses 1,310,372 1,147,388
------------ ------------
INCOME BEFORE TAXES
AND MINORITY INTERESTS 174,590 399,523
PROVISION FOR INCOME TAXES 59,360 49,670
CHANGE IN VALUATION ALLOWANCE (59,360) --
------------ ------------
INCOME BEFORE MINORITY INTERESTS 174,590 349,853
MINORITY INTERESTS IN NET (INCOME)
OF CONSOLIDATED SUBSIDIARIES (12,793) (24,813)
------------ ------------
NET INCOME 161,797 325,040
PREFERRED STOCK DIVIDENDS (3,204) (12,624)
------------ ------------
NET INCOME APPLICABLE TO COMMON STOCK $ 158,593 $ 312,416
============ ============
BASIC EARNINGS PER SHARE $ 0.042 $ 0.085
============ ============
DILUTED EARNINGS PER SHARE $ 0.041 $ *
============ ============
AVERAGE COMMON AND COMMON EQUIVALENT:
BASIC SHARES 3,734,721 3,680,277
============ ============
DILUTED SHARES 3,941,855 *
============ ============
</TABLE>
*Anti-dilutive
See accompanying notes.
<PAGE>
WESTERN COUNTRY CLUBS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended March 31, 1999 and 1998
Common Stock Additional Total
------------------------- Preferred Paid-in Retained Stockholders'
Shares Amount Stock Capital (Deficit) Equity
----------- -------- --------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1997 3,634,721 $ 36,347 $ -- $ 4,314,739 $ (3,147,227) $ 1,203,859
Preferred stock issued -- -- 560,000 -- -- 560,000
Common stock issued for
investment 100,000 1,000 -- 49,000 -- 50,000
Preferred stock dividends -- -- -- -- (12,624) (12,624)
Net income for the three months
ended March 31, 1998 -- -- -- -- 325,040 325,040
----------- -------- --------- ----------- ------------ -------------
Balance, March 31, 1998 3,734,721 $ 37,347 $ 560,000 $ 4,363,739 $ (2,834,811) $ 2,126,275
=========== ======== ========= =========== ============= =============
Balance, December 31, 1998 3,734,721 $ 37,347 545,000 $ 4,363,739 $ (2,927,870) $ 2,018,216
Preferred stock redemption -- -- (145,000) -- -- (145,000)
Preferred stock dividends -- -- -- -- (3,204) (3,204)
Net income for the three months
ended March 31, 1999 -- -- -- -- 161,797 161,797
----------- -------- --------- ----------- ------------ -------------
Balance, March 31, 1999 3,734,721 $ 37,347 $ 400,000 $ 4,363,739 $ (2,769,277) $ 2,031,809
=========== ======== ========= =========== ============= =============
</TABLE>
See accompanying notes.
<PAGE>
WESTERN COUNTRY CLUBS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months Ended March 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 161,797 $ 325,040
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 67,726 67,068
Minority interest in earnings of subsidiaries 12,793 24,813
Gain on sales of assets (100,000) (284,861)
Deferred tax provision 59,360 49,670
Change in deferred tax valuation allowance (59,360) --
Changes in assets and liabilities:
(Increase) decrease in account receivables 30,808 (7,356)
(Increase) decrease in inventories (11,457) 4,689
(Increase) decrease in prepaid expenses 34,800 (27,606)
Increase (decrease) in accounts payable 89,144 (65,993)
Increase in accrued expenses 29,603 36,060
------------ ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 315,214 121,524
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans to related parties (13,000) (28,465)
Receipts on notes receivable 105,110 38,820
Advances on notes receivable -- (5,786)
Purchase of property and equipment (700,248) (1,349)
(Increase) decrease in deposits and other assets (51,691) 10,162
------------ ------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (659,829) 13,382
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on notes payable (72,700) (107,797)
Proceeds from issuance of notes payable 475,000 75,000
Dividends paid on preferred stock (3,204) (12,624)
Partnership distributions to minority interests (1,250) (3,750)
Minority interest investments in LLC's 150,000 --
Redemption of preferred stock (145,000) --
------------ ------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 402,846 (49,171)
------------ ------------
NET INCREASE (DECREASE) IN CASH 58,231 85,735
CASH AT BEGINNING OF PERIOD 205,411 85,949
------------ ------------
CASH AT END OF PERIOD $ 263,642 $ 171,684
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid during the period $ 8,103 $ 39,758
============ ============
</TABLE>
See accompanying notes.
<PAGE>
WESTERN COUNTRY CLUBS, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1
In the opinion of Western Country Clubs, Inc. (the "Company"), the
accompanying unaudited consolidated condensed financial statements contain all
adjustments (consisting of only normal recurring accruals) necessary to present
fairly the financial position as of March 31, 1999 and the results of operations
and cash flow for the three months ended March 31, 1999 and 1998. These
statements are condensed and, therefore, do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. The statements should be read in conjunction with the
consolidated financial statements and footnotes included in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 1998. The results of
operations for the three months ended March 31, 1999 and 1998 are not
necessarily indicative of the results to be expected for the full year.
Note 2
On January 1, 1998, two notes payable to a major stockholder totaling
$378,275 with accrued interest of $21,725 were converted to 40,000 shares of the
Company's Series A 10% cumulative convertible preferred stock. On February 18,
1998, a note payable of $160,000 was converted to 16,000 shares of the Company's
Series B 12% cumulative convertible preferred stock.
During February 1999, $145,000 of Series B preferred stock was redeemed at
face value.
Note 3
Effective January 9, 1998, the Company sold its interest in a limited
partnership for $10,000 in cash and a $210,000 note. Due to extensive losses of
the partnership, the investment in the partnership had been reduced to zero in
1995. The sale resulted in a gain of $192,869, net of the tax effect of $27,131.
On February 6, 1998, the Company sold its Indianapolis club to a major
stockholder of the Company for a $600,000 note and the assumption of $490,426 of
long-term debt and $56,341 of accrued interest and taxes, less $13,000 to be
refunded to the buyer. The sale resulted in a gain of $43,890, net of the tax
effect of $7,999 and minority interests of $12,972.
During March 1999, the Company sold two notes receivable totaling $155,000
plus accrued interest thereon, (previously reserved 100%), for a $100,000 note
receivable due March 25, 2000, bearing interest at 6% per annum. This
transaction resulted in a gain of $100,000.
<PAGE>
PART 1 - Item 2
Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART I
Special Note Regarding Forward-Looking Statements
Certain statements in this Form 10-QSB under "Item 1. Description of
Business", "Item 3. Legal Proceedings", "Item 6. Management's Discussion and
Analysis" and elsewhere constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform
Act"). Such forward-looking statements involve known and unknown risks,
uncertainties and other facts which may cause the actual results, performance or
achievements of Western Country Clubs, Inc. (the "Company") and its subsidiaries
and affiliated partnerships to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following: general economic
and business conditions; competition; success of operating initiatives;
development and operating costs; advertising and promotional efforts; adverse
publicity; customer appeal and loyalty; availability, locations and terms of
sites for nightclub development; the development of the "Atomic Burrito"
concept; changes in business strategy or development plans; quality of
management; availability, terms and development of capital; business abilities
and judgment of personnel; availability of qualified personnel; food, labor and
employee benefit costs; changes in, or the failure to comply with government
regulations; regional weather conditions; construction schedules; and other
factors referenced in the Form 10-QSB. The use in this Form 10-KSB of such words
as "believes", "anticipates", "expects", "intends" and similar expressions are
intended to identify forward-looking statements, but are not the exclusive means
of identifying such statements. The success of the Company is dependent on the
efforts of the Company and its management and personnel and the manner in which
they operate and develop stores.
General
The Company commenced operations in April 1993 with a country-western
nightclub in Indianapolis, Indiana (the "Indy Club"). In April 1994, the Company
opened a nightclub in a suburb of St. Louis, Missouri (the "St. Louis Club").
The Company financed these clubs through limited partnerships in which it was
the general partner. In May 1994, the Company completed its initial public
offering of securities receiving net proceeds of approximately $1.9 million. In
November 1994, the Company purchased a nightclub in Tucson, Arizona (the "Tucson
Club"). At this time, the Company also increased its ownership interest in the
Indy Club to 80% and acquired 100% of the St. Louis Club.
In June 1995, the Company participated as a 50% limited partner in a
partnership formed to acquire a nightclub in Atlanta, Georgia (the "Atlanta
Club"). The Company contributed $500 in partnership capital and loaned an
additional $638,822 to the partnership. Due to continuing losses, the Company
wrote off its interest in the Atlanta Club effective December 31, 1995. On
January 9, 1998, the Company sold its interest in the Atlanta Club for $220,000.
Details of the sale are described more fully below.
In September 1996, Troy H. Lowrie, then President and largest shareholder
of the Company, entered into a Stock Purchase Agreement whereby (i) Red River
Concepts, Inc., a Delaware corporation ("Red River"), or its designees would
acquire in three installments 1,300,000 shares of Mr. Lowrie's Common Stock;
(ii) new management assumed control of the operations of the Company; and (iii)
James E. Blacketer and Joe R. Love, directors of Red River, were appointed to
the Company's Board of Directors. The change of control occurred in October
1996.
Subsequently, on December 16, 1996, new management acquired a nightclub in
Wichita, Kansas (the "Wichita Club") for 400,000 shares of the Company's Common
Stock and assumption of $150,000 in debt. The Wichita Club was owned in part by
entities affiliated with James E. Blacketer and Joe R. Love, directors of the
Company. See Item 12, "Certain Relationships And Related Transactions."
New management also undertook steps to improve the financial performance of
the Tucson Club, which was hampered by high acquisition, leasehold and operating
costs and declining revenues. During October 1996, the Club was remodeled into
two entertainment venues in order to attract new customers and revenues, cost
cutting measures were instituted, and new unit-level management was installed.
Despite these measures, based on the Club's continuing decline in performance,
high overhead and occupancy costs, the Tucson Club's assets were deemed to be
impaired and were written off as of December 31, 1996. The Company sold the
Tucson Club's assets in May 1997 and completed an agreement to settle the
leasehold obligations in August 1997. Details of the sale and lease settlement
are described more fully below.
In February 1997, the Company filed a registration statement for a public
offering of up to 460,000 shares of preferred stock and up to 1,150,000 warrants
to purchase the Company's Common Stock (the "Public Offering"). The Company
cleared all regulatory requirements concerning the Public Offering but the
Company's underwriter was not successful in placing the preferred shares.
Therefore, costs associated with the Public Offering, which had previously been
capitalized were written off at December 31, 1997.
During the fourth quarter of 1997, the Stock Purchase Agreement between
Troy H. Lowrie and Red River Concepts, Inc. was amended whereby Mr. Lowrie
retained 430,000 of the shares which were originally to be sold to Red River.
In June 1998, the Company formed a subsidiary corporation, Atomic Burrito,
Inc., through which to develop a new restaurant concept. Subsequently, Atomic
Burrito, Inc. entered into license agreements for two "Atomic Burrito"
restaurants to be located in Stillwater and Norman, Oklahoma, and entered into a
third license agreement for a restaurant in Longview, Washington. In addition,
in October 1998, the Company entered into a joint venture agreement with New
York Bagel Enterprises, Inc., ("New York Bagel") for the joint development of
"Atomic Burrito" restaurants. The agreement provides for New York Bagel to
contribute certain of its restaurant locations, including leases, leasehold
improvements, and equipment for a 40% interest in the operation, while the
Company would contribute up to $150,000 for the remodel and conversion costs, as
well as for additional equipment. The agreement also provides for the joint
development of a minimum of four and maximum of eight "Atomic Burrito" units
over an 18 month period. The first unit opened in March 1999 in Tulsa, Oklahoma,
while the second unit opened in April 1999.
The Company has entered into a letter of intent which was announced
publicly on May 10, 1999, whereby the Company intends to acquire substantially
all of the assets of New York Bagel Enterprises, Inc. ("NYB"). However, many of
the terms of the letter of intent have been, or are anticipated to be, modified
as a result of further discussions between the Company and NYB. The Company and
NYB are in the process of negotiating the structure of the proposed transaction,
and the consummation of the transaction is subject to many contingencies,
including, without limitation, negotiation and execution of a definitive
agreement, approval of the respective Boards of Directors of the Company and
NYB, approval of the shareholders of NYB, and completion of due diligence. There
can be no assurance that the proposed transaction will be consummated.
Liquidity and Capital Resources
As of March 31, 1999, the Company had cash of $263,642, which was generated
from operating activities, financing activities and investing activities. This
amount represented an increase of $91,958 or 54% from cash at the end of the
same period in 1998, and an increase of $58,231 or 28% from cash at the end of
1998. This increase in cash resulted primarily from $315,214 from operations
compared to only $121,524 from operations in the prior period, and compared to
$108,620 for all of 1998.
At March 31, 1999, the Company's working capital position (current assets
minus current liabilities) was $173,168 compared to $126,983 at year end 1998,
an increase of $46,185 or 36%. This increase is primarily due to the Company's
increased cash at March 31, 1999, as mentioned above, again a result of improved
cash from the Company's operations. This continued improvement in working
capital position is indicative of the improvement that management has made
during the past year in the Company's operations.
Property and equipment primarily consists of assets required for the
operation of the St. Louis and Wichita clubs, as well as the two Atomic Burrito
joint ventures in Tulsa and Wichita. Leasehold improvements increased to
$1,987,728; furniture, fixtures and equipment totaled $900,698; with land and
improvements totaling $77,010.
The Company's total liabilities increased from $826,608 at year end 1998 to
$1,347,654 at March 31, 1999, primarily reflecting the Company's borrowing of
$600,000 from a bank in February, 1999. The purpose of the borrowing was to fund
the Company's investing activity as a joint venture partner in the Atomic
Burrito restaurants in Tulsa and Wichita, and to allow the Company to redeem its
Series B Preferred Stock. The Company has no long term debt at March 31, 1999.
Accounts payable and accrued expenses are slightly higher as compared with the
end of 1998, primarily due to the effect of the opening of the Atomic Burrito in
Tulsa during the quarter and the opening of the Atomic Burrito in Wichita just
after the end of the quarter in April, 1999.
Based upon the results of the first quarter of 1998, the Company's
management is comfortable that the existing operations can adequately support
the Company's debt level and also support future endeavors.
Results of Operations - Quarter Ended March 31, 1999, Compared to the Quarter
Ended March 31, 1998
For the period ended March 31, 1999, total revenue of the Company decreased
slightly by $61,949 or about 4% as compared to the same period in 1998. This
decrease reflects the difference in the sale of assets during the same period a
year ago and in the current period. Operations income during the current quarter
actually increased by $122,912 or about 10% from the first quarter of 1998,
mainly due to the improved operations of the clubs. The current quarter is the
first quarter in more than two years when it was possible to compare operations
with the same operating units, and without a closed unit during or since one of
the periods. The increase in revenues reflects management's belief that the
improvements in operations are making are being evidenced by the actual
financial results. These improvements will continue to enhance the Company's
profitability.
Total costs and expenses during the current period increased from
$1,147,388 in the same period in 1998 to $1,310,372. This increase was caused in
part by the increase in revenues as well as the costs associated with the
development of the Atomic Burrito restaurant concept, which increased the
Company's general and administrative expense during the quarter.
The Company's net income for the current period was $161,797 compared with
a net income during the same period a year ago of $325,040. The difference
reflects the gain the Company recognized during the first quarter of 1998 of
$220,000 on the sale of its partnership interest in Atlanta and the gain of
$64,861 on the sale of the Indy Club. Operations income for the quarter was
comparable with the prior period after taking out the gains on sales of assets
in both periods. Management expects the earnings from operations to continue to
improve in the future, and anticipates earnings from its Atomic Burrito
operations as they operate during the remainder of 1999.
<PAGE>
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
Special Note: Certain statements set forth below under this caption
constitute "forward-looking statements" within the meaning of the Reform Act.
See "Special Note Regarding Forward-Looking Statements" for additional factors
relating to such statements.
The Company is involved in various legal actions associated with the normal
conduct of its business operations. No such actions involve known material gain
or loss contingencies not reflected in the consolidated financial statements of
the Company.
Item 4. Submission of Matters to a Vote of Security Holders
During the recently completed fiscal year, the Company did not submit any
matter to a vote of its shareholders.
<PAGE>
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits:
11. Statement Re: Computation of Per Share Earnings
27. Financial Data Schedule
(b) Reports on Form 8-K
On January 26, 1999 the Company filed a form 8-K due to a change
in auditor.
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
November 13, 1998 Western Country Clubs, Inc.
By:/s/ James E. Blacketer
------------------------
James E. Blacketer
President and Chief Financial Officer
PART II - Item 2
EXHIBIT 11
EXHIBIT 11
WESTERN COUNTRY CLUBS, INC.
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31
1999 1998
------------ -----------
<S> <C> <C>
BASIC EARNINGS PER SHARE:
Net income $ 161,797 $ 325,040
Dividends on preferred stock (3,204) (12,624)
------------ -----------
Net income applicable to
common stock $ 158,593 $ 312,416
============ ===========
Shares used in computing basic earnings
per share 3,734,721 3,680,277
============ ===========
Basic earnings per common share $ 0.042 $ 0.085
============ ===========
DILUTED EARNINGS PER SHARE:
Net income $ 161,797 $ 325,040
============ ===========
Shares used in computing basic earnings
per share 3,734,721 3,680,277
Effect of shares issuable under conversion
of preferred stock 49,422 *
Effect of shares issuable under common stock
warrants under treasury stock method 94,160 *
Effect of shares issuable under common stock
options using treasury stock method 63,552 *
Shares used in computing diluted earnings
per share 3,941,855 *
Diluted earnings per common share $ 0.041 $ *
============ ===========
</TABLE>
* Anti-dilutive
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 263,642
<SECURITIES> 0
<RECEIVABLES> 36,995
<ALLOWANCES> 0
<INVENTORY> 67,971
<CURRENT-ASSETS> 1,520,822
<PP&E> 2,965,436
<DEPRECIATION> 1,191,419
<TOTAL-ASSETS> 3,717,396
<CURRENT-LIABILITIES> 1,347,654
<BONDS> 0
0
400,000
<COMMON> 37,347
<OTHER-SE> 1,594,462
<TOTAL-LIABILITY-AND-EQUITY> 3,717,396
<SALES> 924,375
<TOTAL-REVENUES> 1,484,962
<CGS> 313,663
<TOTAL-COSTS> 1,310,372
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,103
<INCOME-PRETAX> 174,590
<INCOME-TAX> 59,360
<INCOME-CONTINUING> 161,797
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 161,797
<EPS-PRIMARY> 0.042
<EPS-DILUTED> 0.041
</TABLE>
