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 April 4, 1997
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 033-73340-01
John Q. Hammons Hotels, L.P.
John Q. Hammons Hotels Finance Corporation
John Q. Hammons Hotels Finance Corporation II
(Exact name of registrants as specified in their charters)
Delaware 43-1523951
Missouri 43-1680322
Missouri 43-1720400
(State or other jurisdiction of incorporation (IRS Employer
or organization) (Identification Nos.)
300 John Q. Hammons Parkway
Suite 900
Springfield, MO 65806
(Address of principal executive offices)
(417) 864-4300
(Registrants' telephone number, including area code)
Indicate by check mark whether the registrants (1) have 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
registrants were required to file such reports, and (2) have been subject to
such filing requirements for the past 90 days.
Yes ___x__ No ______
JOHN Q. HAMMONS HOTELS, L.P.
John Q. Hammons Hotels Finance Corporation
John Q. Hammons Hotels Finance Corporation II
INDEX
PART I. FINANCIAL INFORMATION
PAGE
Item 1. Financial Statements
Consolidated Balance Sheets at January 3, 1997 (audited)
and April 4,1997 (unaudited) .................................. 3
Consolidated Statements of Income for the three months
ended March 29, 1996 (unaudited) and
April 4, 1997 (unaudited) ....................................... 5
Consolidated Statements of Changes in Equity for the period
January 3, 1997 to April 4, 1997 (unaudited) .................. 6
Consolidated Statements of Cash Flows for the
three months ended March 29,1996 and
April 4, 1997 (unaudited)..................................... 7
Notes to Consolidated Financial Statements ...................... 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ................................... 9
PART II. OTHER INFORMATION AND SIGNATURES
Item 1. Legal Proceedings........................................... 15
Item 6. Reports on Form 8-K........................................... 15
Signatures ........................................ 16
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
JOHN Q. HAMMONS HOTELS, L.P.
CONSOLIDATED BALANCE SHEETS
(000's omitted)
<TABLE>
<CAPTION>
ASSETS
April 4 , 1997 January 3, 1997
(Unaudited) (Audited)
<S> <C> <C>
CASH AND EQUIVALENTS $25,969 $46,449
MARKETABLE SECURITIES 1,646 2,355
RECEIVABLES
Trade, less allowance for doubtful accounts
of $163 7,144 5,790
Construction reimbursements and management fees 740 825
INVENTORIES 1,024 1,019
PREPAID EXPENSES AND OTHER 1,556 1,928
Total current assets 38,079 58,366
PROPERTY AND EQUIPMENT, at cost
Land and improvements 31,847 29,712
Buildings and improvements 458,103 433,059
Furniture, fixtures and equipment 168,871 160,198
Construction in progress 130,233 120,525
789,054 743,494
Less-accumulated depreciation and amortization (181,409) (174,899)
607,645 568,595
DEFERRED FINANCING COSTS, FRANCHISE
FEES AND OTHER, net 29,893 31,111
$675,617 $658,072
</TABLE>
See Notes to Consolidated Financial Statements
JOHN Q. HAMMONS HOTELS, L.P.
CONSOLIDATED BALANCE SHEETS
(000's omitted)
<TABLE>
<CAPTION>
LIABILITIES AND EQUITY
April 4, 1997 January 3 ,1997
LIABILITIES: (Unaudited) (Audited)
<S> <C> <C>
Current portion of long-term debt $15,377 $12,444
Accounts payable 20,397 29,977
Accrued expenses
Payroll and related benefits 3,710 4,611
Sales and property taxes 6,760 7,069
Insurance 9,954 9,511
Interest 3,854 12,634
Utilities, franchise fees, and other 6,669 6,242
Total current liabilities 66,721 82,488
Long-term debt 547,541 518,699
Other obligations and deferred revenue 7,693 7,023
Total liabilities 621,955 608,210
COMMITMENTS AND CONTINGENCIES
EQUITY
Contributed capital 96,436 96,436
Partners' and other deficits, net (42,774) (46,574)
Total equity 53,662 49,862
$675,617 $658,072
</TABLE>
See Notes to Consolidated Financial Statements
JOHN Q. HAMMONS HOTELS, L.P.
CONSOLIDATED STATEMENTS OF INCOME
(000's omitted)
<TABLE>
<CAPTION>
Three Months Ended
April 4, 1997 March. 29, 1996
(Unaudited) (Unaudited)
REVENUES:
<S> <C> <C>
Rooms $45,397 $40,231
Food and beverage 20,397 19,761
Meeting room rental and other 4,748 4,628
Total revenues 70,542 64,620
OPERATING EXPENSES:
Direct operating costs and expenses-
Rooms 11,269 10,294
Food and beverage 14,838 14,303
Other 750 716
General, administrative and sales expense 20,073 19,364
Repairs and maintenance 2,905 2,600
Depreciation and amortization 6,933 5,921
Total operating expenses 56,768 53,198
INCOME FROM OPERATIONS 13,774 11,422
OTHER INCOME (EXPENSE)
Interest income 359 694
Interest expense and amortization of deferred
financing fees (9,718) (9,959)
NET INCOME $4,415 $2,157
</TABLE>
See Notes to Consolidated Financial Statements
JOHN Q. HAMMONS HOTELS, L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(000's omitted)
<TABLE>
<CAPTION>
Contributed Capital Partners and other equity (deficit)
General General Limited
Partner Partner Partner Total
BALANCE,
<S> <C> <C> <C> <C>
January 3, 1997 (audited)$96,436 ($80,236) $33,662 $49,862
Distributions -- -- (615 ) (615)
Net income -- 1,250 3,165 4,415
BALANCE,
April 4,1997 (unaudited) $96,436 ($78,986) $36,212 $53,662
</TABLE>
See Notes to Consolidated Financial Statements
JOHN Q. HAMMONS HOTELS, L.P..
CONSOLIDATED STATEMENTS OF CASH FLOW
(000's omitted)
<TABLE>
<CAPTION>
Three Months Ended
April 4, 1997 March 29,1996
CASH FLOWS FROM OPERATING ACTIVITIES: (Unaudited) (Unaudited)
<S> <C> <C>
Net income $4,415 $2,157
Adjustments to reconcile net income to cash provided by
(used in ) operating activities -
Depreciation, amortization, and loan cost amortization 7,391 6,379
Changes in certain assets and liabilities-
Receivables (1,269) 165
Inventories (5) 89
Prepaid expenses and other 372 (304)
Accounts payable (9,580) (80)
Accrued expenses (9,120) (2,699)
Other obligations and deferred revenue 670 (154)
Net cash provided by (used in) operating activities (7,126) 5,553
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment, net (45,435) (21,486)
Franchise fees and other 212 (426)
Sale of marketable securities 709 13,060
Net cash used in investing activities (44,514) (8,852)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 32,929 - -
Repayments of debt (1,154) (394)
Distributions (615) (670)
Net cash provided by (used by) financing activities 31,160 (1,064)
Increase (decrease) in cash and equivalents (20,480) (4,363)
CASH AND EQUIVALENTS, beginning of period 46,449 41,777
CASH AND EQUIVALENTS, end of period $25,969 $37,414
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
CASH PAID FOR INTEREST, net of amounts capitalized $18,024 $13,989
</TABLE>
See Notes to Consolidated Financial Statements
JOHN Q. HAMMONS HOTELS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. ENTITY MATTERS
The accompanying consolidated financial statements include the accounts of
John Q. Hammons Hotels, L.P. and its wholly-owned subsidiaries
("Partnership"),
consisting of John Q. Hammons Hotels Finance Corporation ("Finance Corp.")
and John Q. Hammons Hotels Finance Corporation II ("Finance Corp. II"), both
corporations with nominal assets and no operations, the catering corporations
(which are separate corporations for each hotel location chartered to own the
respective food and liquor licenses and operate the related food and beverage
facilities), and certain other wholly-owned subsidiaries conducting certain
hotels operations.
In conjunction with a public offering of first mortgage notes in February 1994
("1994 Notes") and in November 1995 ("1995 Notes") by the Partnership and
Finance Corp I and II, and a public offering of common stock in November
1994 ("Common Stock Offering") by its general partner, John Q. Hammons
Hotels, Inc., ("General Partner"), the Partnership, which owned and operated
ten hotels properties, obtained through transfers or contributions from
Mr. John Q. Hammons ("Mr. Hammons") or enterprises that he controlled,
21 additional operating hotel properties, equity interests in two hotels under
construction, the stock of catering corporations and management contracts
relating to all of Mr. Hammons' hotels.
The Partnership is directly or indirectly owned and controlled by Mr.
Hammons, as were all enterprises that transferred or contributed net assets to
the Partnership. Accordingly, the accompanying financial statements present,
as a combination of entities under common control as if using the pooling
method of accounting, the financial position and related results of
operations of all entities on a consolidated basis for all periods presented.
All significant balances and transactions between the entities and
properties have been eliminated.
Mr. Hammons and entities directly or indirectly owned or controlled by him
are the only limited partners of the Partnership. Mr. Hammons, through his
voting control of the General Partner, continues to be in control of the
Partnership.
2. GENERAL
The accompanying unaudited interim consolidated financial statements have
been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission for reporting on Form 10-Q. Accordingly, certain
information and footnotes required by generally accepted accounting principles
for complete financial statements have been omitted. These interim statements
should be read in conjunction with the financial statements and notes thereto
included in the Partnership's Form 10-K for the year ended January 3, 1997,
which included consolidated financial statements for the year ended January 3,
1997 and December 29, 1995.
The information contained herein reflects all normal and recurring adjustments
that, in the opinion of management, are necessary for a fair presentation of the
results of operations and financial position for the interim periods.
The Partnership considers all operating cash accounts and money market
investments with an original maturity of three months or less to be cash
equivalents. Marketable securities consist of available-for-sale commercial
paper and government agency obligations that mature or will be available for
use in operations in 1997. These securities are valued at current market value,
which approximates cost.
3. ALLOCATIONS OF INCOME, LOSSES AND DISTRIBUTIONS
Income, losses and distributions of the Partnership will generally be allocated
between the General Partner and the limited partners based on their respective
ownership interests of 28.31% and 71.69%.
In the event the Partnership has taxable income, distributions are to be made to
the
partners in an aggregate amount equal to the amount that the Partnership would
have paid for income taxes had it been a C Corporation during the applicable
period. Aggregate tax distributions will first be allocated to the general
partner, if applicable, with the remainder allocated to the limited partners.
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION
AND RESULTS OF OPERATIONS
The following discussion and analysis addresses results of operations for the
three months ended April 4, 1997 and March 29, 1996.
Total revenues increased to $70.5 million in the 1997 Three Months from
$64.6 million in the 1996 Three Months, an increase of $5.9 million or 9.2%.
Of the total revenues reported in the 1997 Three Months, 64.4% were revenues
from rooms, 28.9% were revenues from food and beverage, and 6.7% were
revenues from meeting room rental and other, compared with 62.2%, 30.6%,
and 7.2% respectively during the 1996 Three Months.
Rooms revenues increased to $45.4 million in the 1997 Three Months from
$40.2 million in the 1996 Three Months, an increase of $5.2 million or 12.8%
as a result of increases in average room rates and occupancy and total number
of available rooms. Average room rates of all owned hotels increased to
$80.08 in the 1997 Three Months from $75.20 in the 1996 Three Months, an
increase of $4.88 or 6.5%. Occupancy increased to 63.2% in the 1997
Three Months from 63.1% in the 1996 Three Months, an increase of 0.1
percentage points.
Food and beverage revenues increased to $20.4 million in the 1997 Three
Months from $19.8 million in the 1996 Three Months, an increase of $0.6
million or 3.2%. The increase in revenues was attributable to the opening of
additional full service hotels, opening of new restaurant concepts in the
existing hotels, and menu pricing adjustments.
Meeting room rental and other revenues increased to $4.7 million in the 1997
Three Months from $4.6 million in the 1996 Three Months, an increase of $0.1
million or 2.6%.
Direct operating costs and expenses - rooms increased to $11.3 million in the
1997 Three Months from $10.3 million in the 1996 Three Months, an increase
of $1.0 million or 9.5%.
This expense represented 24.8% of rooms revenues in the 1997 Three Month
period and 25.6% in the 1996 Three Month period.
Direct operating costs and expenses - food and beverage increased to $14.8
million in the 1997 Three Months from $14.3 million in the 1996 Three
Months, an increase of $0.5 million or 3.7%.
Direct operating costs and expenses - other were $0.7 million in the 1997 and
1996 Three Months.
General, administrative and sales expenses increased to $20.1 million in the
1997 Three Months from $19.4 million in the 1996 Three Months, an increase
of $0.7 million or 3.7%.
The increased expenses were a result of a greater number of hotels open during
the 1997 Three Months.
Repairs and maintenance expenses increased to $2.9 million in the 1997 Three
Months from $2.6 million in the 1996 Three Months, an increase of $0.3
million or 11.7%. The increase was a result of the Company's increased
number of hotels open.
Depreciation and amortization expenses increased to $6.9 million in the 1997
Three Months from $5.9 million in the 1996 Three Months, an increase of $1.0
million or 17.1%. These expenses represented 9.8% of total revenues in the
1997 Three Month period and 9.2% of total revenues in the 1996 Three Month
period. The increase was attributable to the greater number of open hotels
during the period.
Income from operations increased to $13.8 million in the 1997 Three Months
from $11.4 million in the 1996 Three Months, an increase of $2.4 million or
20.6%. The increase was primarily due to the higher amount of total revenue.
Interest income decreased to $0.4 million in the 1997 Three Months from $0.7
million in the 1996 Three Months, a decrease of $0.3 million or 48.3%. The
decrease was attributable to lower balances in cash and equivalents and in
marketable securities as a result of amounts spent for new construction.
Interest expense and amortization of deferred financing fees decreased to $9.7
million in the 1997 Three Months from $10.0 million in the 1996 Three
Months, a decrease of $0.3 million or 2.4%. As a percentage of total revenues,
this expense decreased to 13.8% in the 1997 Three Months from 15.4% in the
1996 Three Months as a result of additional capitalized
interest associated with projects under construction.
Net Income increased to $4.4 million in the 1997 Three Months from $2.2
million in the 1996 Three Months, an increase of $2.2 million or 104.7%. As a
percentage of total revenues, it increased to 6.3% in the 1997 Three Months
from 3.3% in the 1996 Three Months. The increase was primarily due to an
increase in income from operations associated with the six hotels opened in
1995 that are continuing to mature towards normal occupancy
levels.
Liquidity and Capital Resources
In general, the Partnership has financed its operations through internal cash
flow, loans from financial institutions, the issuance of public debt and
equity and the issuance of industrial revenue bonds. Twenty of the
Partnership's hotels are pledged to secure the 1994 Notes
(the "1994 Collateral Hotels"). Eight of the Partnership's hotels are
pledged to secure the 1995 Notes (the "1995 Collateral Hotels").
The Partnership in the future may obtain mortgage financing secured by
unencumbered hotels and construction in progress to provide additional
liquidity, if necessary. The Partnership's principal uses of cash are to
pay operating expenses, to service debt, and to fund capital expenditures,
new hotel development and partnership distributions.
At April 4, 1997 the Partnership had $26.0 million of cash and equivalents,
and also had $1.6 million of marketable securities. Such investmnet is
expected to be used for development of new hotels and other working capital
requirements of the Partnership.
Net cash used by operating activities was $7.1 million for the first three
months of 1997 compared to cash provided by operating activities of $5.6
million at the end of the first three months of 1996, a decrease of $12.7
million. A majority of the decrease was due to the decrease in construction
payables and accrued expenses.
The Partnership incurred net capital expenditures of $ 45.4 million during the
first three months of 1997 and $21.5 million during the first three months of
1996. Capital expenditures include expenditures for development of new
hotels and capital improvements on existing hotel properties. During the
remainder of 1997 the Partnership expects capital expenditures to total
approximately $179 million, representing $18 million for capital improvements
on existing hotels and $161 million for continued new hotel development.
The Partnership currently has eight hotels under construction. The Partnership
estimates that building and pre-opening costs of the these eight hotels will
require aggregate funding of approximately $150 million from the Partnership
(net of $124 million included in construction in progress at April 4, 1997). The
Partnership has obtained loans on these eight hotels of $131 million ($31.0
million which had been drawn at April 4, 1997) and expects the remaining
1997 capital requirements to be funded by cash, operating income, and
additional loans on four unencumbered hotels.
In addition to the capital expenditures for the hotels under construction, the
Partnership is at various stages in other new hotel development. Capital
requirements for the hotels under development are expected to be provided by
(i) mortgage financing secured by the Owned Hotels which are unencumbered;
(ii) mortgage financing secured by the Hotels as described above; and (iii)
contributions from third parties.
The Partnership expects to fund development of new hotels through limited
partnerships in which the Partnership will be the general partner and a wholly
owned corporate subsidiary of the Partnership will be the limited partner. As
permitted by the Indentures related to the 1994 Notes and 1995 Notes (the
"1994 and 1995 Note Indentures"), each of these entities will be an
"Unrestricted Subsidiary" for purposes thereof, and accordingly, the ability of
the Partnership to fund these entities is subject to certain limitations
contained in the 1994 and 1995 Note Indentures. All of the indebtedness of
these entities will be non-recourse to the Partnership. The Partnership
believes that funding permitted under the 1994 and 1995 Note Indentures
will be sufficient to meet its current development plans.
Based upon current plans relating to the timing of new hotel development, the
Partnership anticipates that its capital resources will be adequate to
satisfy its 1997 capital requirements for the currently planned projects and
normal recurring capital improvement projects through the end of 1997 for hotels
currently under construction and normal recurring capital improvement
projects.
The Partnership paid distributions of approximately $ 0.6 million during the
first three months of 1997 to its partners. Distributions by the
Partnership to its partners must be made in accordance with provisions of
the 1994 and 1995 Note Indentures.
Supplemental Financial Information Relating to the 1994 and 1995 Collateral
Hotels. The following tables set forth, as of April 4, 1997, unaudited selected
financial information with respect to the 20 hotels collateralizing the 1994
Notes (the "1994 Collateral Hotels") and the eight hotels collateralizing the
1995 Notes ("the 1995 Collateral Hotels")
and the Partnership, excluding Unrestricted Subsidiaries (as defined in the
indentures relating to the 1994 Notes and the 1995 Indentures) (the "Restricted
Group"). Under the heading
"Management Operations," information with respect to revenues and expenses
generated by the Company as manager of the 1994 Collateral Hotels, the 1995
Collateral Hotels, the other Owned Hotels owned by John Q. Hammons Hotels
Two, L.P. ("L.P. Two"), and the Managed Hotels is provided.
<TABLE>
<CAPTION>
Trailing 12 Months Ended April 4, 1997
_________ ________ __________ ______
1994 1995 Management Total
Collateral Collateral Operations Restricted
Hotels Hotels Group
---------- ---------- ---------- ---------
(Dollars in thousands, except operating data)
Statement of Operations Data:
<S> <C> <C> <C> <C>
Operating Revenues $ 153,323 $ 61,680 $ 4,660(a) $ 219,663
Operating Expenses:
Direct operating costs
and expenses 58,715 24,423 -- 83,138
General, administrative, sales
and management expenses (b) 42,390 18,332 (2,459)(c) 58,263
Repairs and maintenance 6,354 2,878 -- 9,232
Depreciation and amortization 10,666 4,906 140 15,712
Total operating expense 118,125 50,539 (2,319) 166,345
Income from operations $ 35,198 $ 11,141 $ 6,979 $ 53,318
======= ======= ======= ======
Operating Data:
Occupancy 66.4% 66.4%
Average daily room rate $77.72 $72.06
RevPAR $51.58 $47.84
</TABLE>
<TABLE>
<CAPTION>
12 Months Ended January 3, 1997
_______ ________ _________ ________
1994 1995 Management Total
Collateral Collateral Operations Restricted
Hotels Hotels Group
-------- --------- -------- ---------
(Dollars in thousands, except operating data)
Statement of Operations Data:
<S> <C> <C> <C> <C>
Operating Revenues $153,000 $ 61,375 $ 3,211(a) $217,586
Operating Expenses:
Direct operating costs
and expenses 59,013 24,255 -- 83,268
General, administrative, sales
and management expenses (b) 42,196 18,193 (2,451)(c) 57,938
Repairs and maintenance 6,322 2,835 -- 9,157
Depreciation and amortization 10,235 4,714 120 15,069
Total operating expenses 117,766 49,997 (2,331) 165,432
Income from operations $ 35,234 $ 11,378 $ 5,542 $52,154
======= ======= ======= ======
Operating Data:
Occupancy 66.5% 67.1%
Average daily room rate $77.06 $71.40
RevPAR $51.23 $47.92
</TABLE>
- ---------------------------------------------------------
(a)Represents management revenues derived from the Owned Hotels owned by
Two L.P. and the Managed Hotels.
(b)General, administrative, sales and management expenses for the 1994 and
1995 Collateral Hotels includes management expenses allocated to the
respective hotels.
(c)General, administrative, sales and management expenses applicable to
management operations is net of management revenues allocated to the
1994 and 1995 Collateral Hotels.
Part II. OTHER INFORMATION AND SIGNATURES
Item 1. Legal Proceedings
At April 4, 1997 there were no material pending legal
proceedings.
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for
which this report is filed
SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be signed
on their behalf by the undersigned, thereunto duly authorized, in
the City of Springfield, Missouri on the 16th day of May, 1997.
JOHN Q. HAMMONS HOTELS, L.P.
By: John Q. Hammons Hotels, Inc., its
General Partner
By: /s/ John Q. Hammons
John Q. Hammons
Chairman, Founder,
and Chief Executive Officer
By: /s/ Mel J. Volmert
Mel J. Volmert
Executive Vice President and
Chief Financial Officer
JOHN Q. HAMMONS HOTELS JOHN Q. HAMMONS HOTELS
FINANCE FINANCE
CORPORATION CORPORATION II
By: /s/ John Q. Hammons By: /s/ John Q. Hammons
John Q. Hammons John Q. Hammons
Chairman, Founder, Chairman, Founder,
and Chief Executive Officer and Chief Executive Officer
By: /s/ Mel J. Volmert By: /s/ Mel J. Volmert
Mel J. Volmert Mel J. Volmert
Executive Vice President and Executive Vice President
Chief Financial Officer and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-2-1997
<PERIOD-END> APR-4-1997
<CASH> 25969
<SECURITIES> 1646
<RECEIVABLES> 7144
<ALLOWANCES> 0
<INVENTORY> 1024
<CURRENT-ASSETS> 38079
<PP&E> 789054
<DEPRECIATION> 181409
<TOTAL-ASSETS> 675617
<CURRENT-LIABILITIES> 66721
<BONDS> 390000
0
0
<COMMON> 0
<OTHER-SE> 53662
<TOTAL-LIABILITY-AND-EQUITY> 675617
<SALES> 70542
<TOTAL-REVENUES> 70901
<CGS> 26857
<TOTAL-COSTS> 56768
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9718
<INCOME-PRETAX> 4415
<INCOME-TAX> 0
<INCOME-CONTINUING> 4415
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4415
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
