<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES ACT OF 1934
For the quarter ended: Commission File Number:
June 30, 1995 033-73768
------------- ---------
AUTOMOBILE CREDIT FINANCE V, INC.
---------------------------------
(Exact name of Registrant as specified in its charter)
Texas 75-2512946
----- ----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
700 North Pearl, Suite 400, Plaza of the Americas, North Tower, Lock Box 401,
--------------------------------------------------------------------------------
Dallas, Texas 75201
-------------------
(Address and zip code of principal executive offices)
(214) 965-6000
--------------
(Registrant's telephone number, including area code)
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
--- ---
<TABLE>
<CAPTION>
Number of Shares Outstanding
Class at July 31, 1995
----- ----------------
<S> <C>
Common Stock, $1.00 par value 1,000
</TABLE>
<PAGE> 2
PART I-FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AUTOMOBILE CREDIT FINANCE V, INC.
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS June 30, 1995 September 30, 1994
------------- ------------------
(Unaudited)
<S> <C> <C>
Contract receivables, net $11,396,000 $14,213,000
Cash and cash equivalents 883,000 24,000
Vehicles held for resale 308,000 192,000
Due from (to) related party (93,000) 85,000
Deferred note offering costs,
net of amortization of $637,000
and $216,000, respectively 1,267,000 1,688,000
Loan origination costs,
net of amortization of $416,000
and $170,000, respectively 255,000 367,000
Other assets (26,000) 7,000
------------------------ ------------------
Total assets $13,990,000 $16,576,000
======================== ==================
LIABILITIES AND CAPITAL DEFICIT
Notes payable to investors $19,872,000 $19,872,000
Accounts payable 78,000 68,000
Accrued investor interest 199,000 199,000
------------------------ ------------------
Total liabilities 20,149,000 20,139,000
CAPITAL DEFICIT
Common stock, $1.00 par value, 50,000
shares authorized, 1,000 shares
issued and outstanding 1,000 1,000
Additional paid-in capital 9,000 9,000
Accumulated deficit (6,169,000) (3,573,000)
------------------------ ------------------
Total capital deficit (6,159,000) (3,563,000)
------------------------ ------------------
Total liabilities and capital deficit $13,990,000 $16,576,000
======================== ===================
</TABLE>
See accompanying notes
2
<PAGE> 3
AUTOMOBILE CREDIT FINANCE V, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Inception
Ended Through
June 30, 1995 June 30, 1994
------------- -------------
(restated - Note 4)
<S> <C> <C>
Interest revenue (net of loan origination cost
amortization of $247,000 and $42,000,
respectively) $2,953,000 $834,000
Interest expense (including deferred offering
cost amortization of $421,000 and
$103,000, respectively) 2,209,000 562,000
-------------------- ------------------
Net interest income 744,000 272,000
Provision for credit losses 1,760,000 1,748,000
-------------------- ------------------
Net interest loss after provision for
credit losses (1,016,000) (1,476,000)
General and administrative expenses 1,580,000 426,000
-------------------- ------------------
Net loss $(2,596,000) $(1,902,000)
==================== ==================
</TABLE>
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
June 30, 1995 June 30, 1994
------------- -------------
<S> <C> <C>
Interest revenue (net of loan origination cost
amortization of $75,000 and $39,000,
respectively) $991,000 $773,000
Interest expense (including deferred offering
cost amortization of $146,000 and,
$99,000 respectively) 742,000 544,000
-------------------- ------------------
Net interest income 249,000 229,000
Provision for credit losses 190,000 1,410,000
-------------------- ------------------
Net interest income (loss) after provision for
credit losses 59,000 (1,181,000)
General and administrative expenses 559,000 381,000
-------------------- ------------------
Net loss $(500,000) $(1,562,000)
==================== ==================
</TABLE>
See accompanying notes
3
<PAGE> 4
AUTOMOBILE CREDIT FINANCE V, INC.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Inception
Ended Through
June 30, 1995 June 30, 1994
------------- -------------
(restated - Note 4)
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss $(2,596,000) $(1,902,000)
Adjustments to reconcile net loss to cash used in
operations:
Amortization of deferred offering cost 421,000 103,000
Amortization of loan origination cost 246,000 42,000
Increase in allowance for credit losses 1,760,000 1,748,000
Changes in assets and liabilities:
Increase in related party balances 178,000 843,000
Decrease in other assets 33,000 -
Increase in accounts payable and
accrued interest 10,000 217,000
------------------ ---------------
Cash provided by operations 52,000 1,051,000
INVESTING ACTIVITIES:
Purchase of contract receivables (5,302,000) (19,649,000)
Loan origination costs (134,000) (480,000)
Principal payments on contract receivables,
including proceeds from sales of vehicles 6,243,000 1,394,000
------------------ ---------------
Cash provided by (used in) investing activities 807,000 (18,735,000)
FINANCING ACTIVITIES:
Notes payable proceeds - 19,713,000
Notes payable offering costs - (1,890,000)
------------------ ---------------
Cash provided by financing activities - 17,823,000
Change in cash and cash equivalents 859,000 139,000
Cash and cash equivalents - beginning 24,000 10,000
------------------ ---------------
Cash and cash equivalents - ending $883,000 $149,000
================== ===============
------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
Cash paid for interest $1,788,000 $269,000
=================== ===============
</TABLE>
See accompanying notes
4
<PAGE> 5
AUTOMOBILE CREDIT FINANCE V, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION
Automobile Credit Finance V, Inc. (the Company), is a Texas Corporation
organized on November 30, 1993 by Search Capital Group, Inc. ("Search"), who
owns 100% of the Company's common stock. The Company was established to
purchase retail installment sales contracts created by Search to finance sales
of used automobiles and light trucks.
The information presented herein includes adjustments which the Company
management believes are necessary for fair presentation of its financial
position and results of operations. Substantially all of the disclosures
required for annual financial reports have been omitted. These interim
financial statements and related notes are unaudited, and should be read in
conjunction with the Company's annual report on Form 10-K for the year ended
September 30, 1994.
Search and its wholly owned subsidiaries Automobile Credit Acceptance
Corporation ("ACAC"), and Consumer-Dealer AUTOCREDIT ("CDAC"), are engaged
primarily in the motor vehicle receivable purchasing and servicing business.
ACAC and CDAC have a network of new and used third party vehicle dealers who
generate vehicle receivables and sell them to the Company or other ACAC
designees.
2. AUTOMOBILE CONTRACT NOTES OFFERING
Pursuant to an Indenture dated as of February 1, 1994, with ACAC and Texas
Commerce Trust National Association (the "Trustee"), the Company has issued
$19,872,000 in 12% Automobile Contract Notes due December 31, 1997 (the
"Notes"). The Notes require monthly interest payments payable monthly at a
rate of 12% per annum. In September 1994, the Company closed the $20,000,000
offering after raising $19,872,000.
The Indenture requires that all of the Company's excess cash flow after
September 30, 1996, must be deposited into a sinking fund held by the trustee
for payment of the Notes. Under the terms of the Indenture, and with the
approval of the Trustee in the event of default, the Company would be able to
repay the Notes, in part, through sinking fund cash from collections on
outstanding contracts through December 1, 1997 and sale or collection of the
remaining balances on outstanding contracts at December 31, 1997.
The Company paid its offering and organizational fees and costs out of the
gross sales proceeds from the Notes. These fees and costs of $1,904,000 were
limited to 10.7% of the gross sales proceeds.
It is currently estimated that the Company will have insufficient sinking fund
cash to pay the holders of the Company's Notes in full at maturity on December
31, 1997, due to the collection performance of contracts owned by the Company
and will be in default under the terms of the indenture on the maturity date.
See further discussion in Item 2 under management's discussion of liquidity and
capital resources of management's intention to convert the Company's existing
notes payable into common shares and a new class of preferred shares of Search.
5
<PAGE> 6
3. INTEREST INCOME, CONTRACT RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES
The Company records contract purchases at cost. An initial reserve is recorded
for the difference between the remaining contractual finance amount at the time
of acquisition and the acquisition cost. Contractual finance charges are
initially recorded to unearned interest and recorded to interest income using
the interest method. The Company evaluates the impairment of loans based on
contract delinquency and other factors. Reserves are established for impaired
loans to reduce the net receivable to the lower of collateral value or
estimated net realizable value. Interest income is not recognized on loans
where concern exists about the collectibility of the account. Reserve
requirements in excess of the initial reserve are provided, as needed, through
a charge to provision for credit losses.
The recorded investment and related allowance for credit losses is summarized
below:
<TABLE>
<CAPTION>
As of June 30, 1995
-------------------
Number of Total Net
Active Unpaid Unearned Contract
Contracts Installments Interest Receivables
--------- ------------ -------- -----------
<S> <C> <C> <C>
Impaired contracts 511 $3,975,000 $595,000 $3,380,000
Unimpaired contracts 2,610 17,929,000 3,590,000 14,339,000
----------------- ------------- ------------- -------------
Total 3,121 $21,904,000 $4,185,000 17,719,000
================= ============= =============
Allowance for credit losses 6,323,000
-------------
Contract receivables, net, after
allowance for credit losses $11,396,000
=============
</TABLE>
<TABLE>
<CAPTION>
As of September 30, 1994
-------------------------
Number of Total Net
Active Unpaid Unearned Contract
Contracts Installments Interest Receivables
--------- ------------ -------- -----------
<S> <C> <C> <C> <C>
Impaired contracts 752 $7,128,000 $1,489,000 $5,639,000
Unimpaired contracts 2,749 23,797,000 5,703,000 18,094,000
----------------- ------------- -------------- -------------
Total 3,501 $30,925,000 $7,192,000 23,733,000
================= ============= ==============
Allowance for credit losses 9,520,000
-------------
Contract receivables, net, after
allowance for credit losses $14,213,000
=============
</TABLE>
6
<PAGE> 7
At June 30, 1995, maturities of existing contract receivables and projected
interest income on existing receivables were as follows:
<TABLE>
<CAPTION>
12 Months Ending June 30,
-------------------------
1996 1997 1998 Total
---- ---- ---- -----
<S> <C> <C> <C> <C>
Future payments
receivable $4,668,000 $10,631,000 $6,605,000 $21,904,000
Less unearned
interest income (2,216,000) (1,709,000) (260,000) (4,185,000)
---------------- ------------------- ------------------- ----------------
$2,452,000 $8,922,000 $6,345,000 $17,719,000
================ =================== =================== ================
</TABLE>
The above contract maturity amounts should not be regarded as a forecast of
cash collections. The Company is anticipating repossession rates of 45% to 55%
over the life of the loan portfolio. Management anticipates that many of the
contracts will be liquidated through repossession proceeds before contract
maturity. Also, a portion of the loan portfolio will be prepaid before or
extended past the contract maturity date.
The change in the allowance for doubtful collections is summarized as follows:
<TABLE>
<S> <C>
Balance, as of September 30, 1994 $9,520,000
Allowance recorded upon acquisition of loans 2,155,000
Increase in allowance for credit losses 1,760,000
Loans charged off against allowance (7,112,000)
-----------
Balance, June 30, 1995 $6,323,000
===========
</TABLE>
In the fourth quarter of 1994, the Company adopted SFAS 114 and SFAS 118 and
has accordingly restated the earlier 1994 quarters (see Note 4).
Most of the Company's contract receivables are due from individuals in the
major metropolitan areas of Texas and other southern states. To some extent,
realization of the receivables will be dependent on local economic conditions.
The Company holds vehicle titles as collateral for all contract receivables
until such receivables are paid in full. The contract receivables are pledged
as collateral for the Company's Notes.
7
<PAGE> 8
4. ADJUSTMENT TO THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 1994
In the fourth quarter of 1994, the Company elected early adoption of SFAS 114
and SFAS 118 ("SFAS 114"). This adoption results in the restatement of all
prior interim periods of fiscal 1994 and affects this interest income and loss
provision amounts on the three month and nine months periods ended June 30,
1994. The accompanying financial statements have been restated to reflect
these items. The effect of the restatement on the results of operations for
the three months and nine months ended June 30, 1994 is as follows:
<TABLE>
<CAPTION>
Nine months Three months Nine months Three months
ended ended ended ended
6/30/94 6/30/94 6/30/94 6/30/94
amount amount per share per share
------ ------ --------- ---------
<S> <C> <C> <C> <C>
Net income (loss) attributable to
common shareholders:
As previously reported $248,000 $219,000 $ 248 $ 219
Effect on interest revenue of
adopting SFAS 114 (402,000) (371,000) (402) (371)
Effect on net loss provision of
adopting SFAS 114 (1,748,000) (1,410,000) (1,748) (1,410)
------------ ------------ --------- -----------
Loss as restated $(1,902,000) $(1,562,000) $(1,902) $(1,562)
============ ============ ========= ===========
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GENERAL
The Company is an industry specific financial services company specializing in
the purchase, management, and securitization of used motor vehicle receivables.
These receivables are secured by medium-priced, used automobiles and light
trucks which typically have been purchased by consumers with substandard credit
histories at retail prices ranging from $5,000 to $10,000. The Company
purchases these receivables from a network of unaffiliated new and used
automobile dealers (the "Dealer Network") at discounts ranging generally from
40% to 55% of total unpaid installments, which installments include both
principal and interest. The members of the Dealer Network generate the
receivables and offer them for sale on a non-exclusive basis to the Company.
Members forego some future profit on each receivable sold to the Company in
exchange for an immediate return of their invested capital.
8
<PAGE> 9
RESULTS OF OPERATIONS
Contract Purchases
Operational results are primarily driven by the Company's contract purchases.
The Company's contract purchases by quarter were:
<TABLE>
<CAPTION>
Fiscal Fiscal
Quarter Year Quantity Cost
------- ---- -------- ----
<S> <C> <C> <C>
Q2 1994 1,077 $5,466,000
Q3 1994 2,712 14,183,000
Q4 1994 420 2,181,000
Q1 1995 302 1,379,000
Q2 1995 314 1,170,000
Q3 1995 583 2,753,000
----- -----------
Total 5,408 $27,132,000
===== ===========
</TABLE>
Comparison of Nine Month Periods Ended June 30, 1995 and 1994
Interest revenue increased from $834,000 for the nine month period ended June
30, 1994 to $2,953,000 for the nine month period ended June 30, 1995. The
increase in interest revenue is due to an increase in net contract receivables
and amortization of unearned interest.
The Company purchased 1,199 contracts during the nine months ended June 30,
1995, as compared to 3,789 contracts during the nine months ended June 30,
1994. The cost of the contracts including Company loan origination costs was
$5,436,000 ($4,534 per contract) for the nine months ended June 30, 1995,
compared to a cost of $20,129,000 ($5,312 per contract) for the nine months
ended June 30, 1994.
Interest expense increased from $562,000 for the nine month period ended June
30, 1994 to $2,209,000 for the nine month period ended June 30, 1995. The
increase in interest expense is due to an increase in notes payable and the
fact the Company began issuing its notes in February 1994.
Net interest income increased from $272,000 for the nine month period ended
June 30, 1994 to $744,000 for the nine month period ended June 30, 1995. The
increase in net interest income is due to an increase in contract receivables.
The provision for credit losses increased from $1,748,000 for the nine months
ended June 30, 1994 to $1,760,000 for the nine months ended June 30, 1995, due
to deterioration in contract performance.
General and administrative expenses were $426,000 for the nine months ended
June 30, 1994 compared to $1,580,000 for the nine months ended June 30, 1995.
General and administrative expenses consist primarily of repossession, vehicle
repair, maintenance expenses, servicing fees, bank, accounting, and attorney
and trustee fees. Servicing fees are paid to ACAC monthly at the current rate
of $22.30 for each receivable that is not in default. The increase in general
and administrative expenses is due to the increases in the average number of
contracts being serviced during the 1995 period.
Comparison of Three Month Periods Ended June 30, 1995 and 1994
For the three months ended June 30, 1995, the Company had interest revenue of
$991,000 compared to $773,000 for the three months ended June 30, 1994. The
increase in interest revenue was due to an increase in average contract
receivables and amortization of unearned interest.
Interest expense increased from $544,000 for the three months ended June 30,
1994 to $742,000 for the three months ended June 30, 1995 due to an increase in
average notes payable of $12,866,000 and the fact the Company began issuing
notes payable in February of 1994.
9
<PAGE> 10
Net interest income increased from $229,000 for the three months ended June 30,
1994 to $249,000 for the three months ended June 30, 1995 due to an increase in
average contract receivables.
The provision for credit losses decreased from $1,410,000 for the three months
ended June 30, 1994 to $190,000 for the three months ended June 30, 1995. The
decrease in provision is primarily due to improvement in contract performance
and the establishment of an adequate reserve for credit losses in prior
periods.
For the three months ended June 30, 1995, the Company had general and
administrative expenses of $559,000 compared to $381,000 for the three months
ended June 30, 1994. General and administrative expenses consist primarily of
repossession, vehicle repair, maintenance expenses, servicing fees, bank,
accounting, and attorney and trustee fees. Servicing fees are paid to ACAC
monthly at the current rate of $22.30 for each receivable that is not in
default. The increase in general and administrative expenses is due to an
increase in the average number of contracts being serviced during the 1995
period.
LIQUIDITY AND CAPITAL RESOURCES
The Company reached minimum subscription amount and began purchasing contract
receivables in March 1994. The Company had completed raising the total
subscription amount of $19,872,000 by September 1994, and the Company completed
its initial investment of net proceeds of $17,968,000 during the fiscal quarter
of calendar 1994. By applying note proceeds, surplus cash collections, and
repossession proceeds, the Company has purchased a total of $27,132,000 in
contract receivables through June 30, 1995.
The Company's liquidity is a function of, among other things, cash flow from
receivables owned by the Company and Company expenditures.
Based on the collection performance of contracts owned by the Company, it is
currently estimated that the Company will have insufficient sinking fund cash
to pay the holders of the Company's Notes in full at maturity on December 31,
1997. While the sale or collection of remaining receivables after maturity may
reduce the shortfall, there can be no assurance that the Company will be able
to obtain a buyer for the receivables and it is unlikely that the proceeds from
sale or collection will be sufficient to pay the Noteholders in full.
The Company's projected insufficient cash balance at the maturity date of the
Notes payable on December 31, 1997 will constitute a default at maturity date
under its indenture agreement with Texas Commerce Bank National Association
("Trustee"). With the occurrence of a default, the Trustee has the option to
sell the Company's assets, to institute judicial proceedings to force complete
or partial foreclosure of the Company, and to take any other appropriate
actions to protect and enforce the rights and remedies of the Trustee and, the
Company's noteholders. At the time of default, the collections from assets and
sale proceeds of repossessed vehicles will be applied to the remaining balance
due Noteholders after Trustee fees and expenses. Trustee expenses can include
servicing, banking, legal, accounting, repossession, repair, liquidation and
taxation expenditures.
The sinking fund begins on October 1, 1996, and the cash provided by operations
and principal payments on contract receivables are to be deposited into a
sinking fund trust account and no additional contracts would be purchased. The
funds in the sinking fund would be invested until maturity at money market fund
rates. The required sinking fund deposits would cause the Company's interest
revenue and interest margin to decrease.
The Company joined in a pre-existing tax benefits sharing agreement with
Search. Under the terms of this agreement, the Company is required to
reimburse Search for any income tax payments made by Search on the Company's
behalf and to reimburse Search for the costs accruing to the Company from any
tax losses or credits of Search that are used to offset the taxable income of
the Company. Search is required to reimburse the Company for benefits accruing
to the other participants in the sharing agreement from any tax losses or
credits of the Company that are used to offset tax payments of the other
participants.
Proceeds from the Company's receivables are restricted to repayment of the
Notes, the payment of interest, the payment of certain allowed expenses,
including servicing fees, and, until commencement of the sinking fund period,
the purchase of additional receivables. The Notes require interest payments
only until maturity.
10
<PAGE> 11
Until maturity the difference between collections and interest due each month
is first applied to allowed expenses of the Company (primarily repossession,
repair and maintenance expenses, servicing, investor relations and purchasing
fees, bank, accounting, attorney and trustee fees, and income taxes). Prior to
the sinking fund period, any remaining cash flow is invested in the purchase of
additional receivables. Servicing, investor relations and purchasing fees are
an allowed expense of the Company and are paid to AutoCredit. If there is a
remaining unpaid balance on the Notes after maturity, the Notes will be in
default, and the Note Trustee will determine which expenses are reimbursed,
including whether the Company may use contract proceeds to pay servicing,
investor relations and purchasing fees to ACAC.
Management is currently pursuing a plan to convert the existing notes payable
into common and preferred shares of Search. It is anticipated that both the
common and the preferred shares will be fully tradable securities and that the
preferred shares will pay quarterly dividends at 9% per annum. The plan would
necessitate that the Company file under Chapter 11 of the United States
Bankruptcy Code. An ad hoc noteholder committee has been formed to determine
the terms of the conversion plan with the Company. During the period from the
filing of the Chapter 11 petition until the plan is approved by the noteholders
and the Bankruptcy Court has issued a final order of confirmation of a
reorganization plan, the Company intends to continue to use Search to service
the Company's receivables until either all of the remaining receivables are
collected and any repossessed vehicles are sold or until the conversion plan is
consummated. If the plan of reorganization is not approved by the Bankruptcy
Court, the Company may have to seek another company to service the Company's
receivables since Search has indicated that, in the absence of the conversion
of the notes payable into Search common and preferred shares, it may not have
sufficient resources to continue the Company's receivables.
Neither Search nor any subsidiary or affiliate of Search has guaranteed
repayment of the Company's Notes or has any current or future obligation to
support the Company. Except for the sale and collection of the Company's
receivables, the Company does not anticipate that it will have any other source
of capital to satisfy the Notes.
11
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
<TABLE>
<S> <C>
AUTOMOBILE CREDIT FINANCE V, INC.
DATE: August 4, 1995 BY: /s/ Lucian D. Vandergrift, III
------------------------------
Lucian D. Vandergrift, III
Reporting Officer
DATE: August 4, 1995 BY: /s/ Robert D. Idzi
------------------------------
Robert D. Idzi
Senior Vice President, Chief
Financial Officer and Treasurer
(Principal Financial Officer)
</TABLE>
12
<PAGE> 13
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<S> <C>
27 Financial Data Schedule.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000916939
<NAME> AUTOMOBILE CREDIT FINANCE V
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 883,000
<SECURITIES> 0
<RECEIVABLES> 11,396,000
<ALLOWANCES> 0
<INVENTORY> 308,000
<CURRENT-ASSETS> 1,403,000
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 13,990,000
<CURRENT-LIABILITIES> 20,149,000
<BONDS> 0
<COMMON> 1,000
0
0
<OTHER-SE> (6,160,000)
<TOTAL-LIABILITY-AND-EQUITY> 13,990,000
<SALES> 0
<TOTAL-REVENUES> 2,953,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,580,000
<LOSS-PROVISION> 1,760,000
<INTEREST-EXPENSE> 2,209,000
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,596,000)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
