UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 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 0-25176
---------------------------------------------------
MEDCATH INCORPORATED
(Exact name of registrant as specified in its charter)
North Carolina 56-1635096
- --------------------------------- ------------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
7621 Little Avenue, Suite 106, Charlotte, North Carolina 28226
(Address of principal executive officers)
(Zip Code)
(704) 541-3228
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
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_____
As of January 27, 1997, there were 11,146,749 Common Shares outstanding.
<PAGE>
MEDCATH INCORPORATED
FORM 10-Q
December 31, 1996
Table of Contents
Page
No.
PART I - FINANCIAL INFORMATION (UNAUDITED)
Item 1. Condensed consolidated financial statements
* Condensed consolidated statements of income 3
* Condensed consolidated balance sheets 4
* Condensed consolidated statements of cash flows 5
*Notes to condensed consolidated financial statements 6-7
Item 2. Management's discussion and analysis of
financial condition and results of operations 8-11
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
2
<PAGE>
<TABLE>
<CAPTION>
MedCath Incorporated
Condensed Consolidated Statements of Income
Three Months Ended
December 31,
------------------------------------
1995 1996
------------------------------------
<S> <C> <C>
Net revenue $ 11,208,6$3 $ 22,854,453
Operating expenses:
Medical supplies and other 4,189,933 8,595,329
Personnel costs 2,376,365 6,144,428
Depreciation 732,158 1,490,153
Amortization 186,909 750,158
Provision for doubtful accounts - 450,967
Marketing, general and administrative 1,360,247 1,902,211
------------------------------------
Total operating expenses 8,845,612 19,333,246
------------------------------------
Income from operations 2,363,021 3,521,207
Interest expense (167,097) (702,413)
Interest income 183,129 675,161
Minority interest in earnings of consolidated entities (362,121) (570,195)
Equity in net earnings of unconsolidated joint venture 26,685 -
------------------------------------
Income before income taxes 2,043,617 2,923,760
Provision for income taxes (817,447) (1,169,504)
====================================
Net income $ 1,226,$70 1,754,256
====================================
Net income per share $ 0.14 $ 0.15
====================================
Weighted average number of common and common
equivalent shares outstanding 8,989,601 11,684,550
<FN>
See accompanying notes.
</FN>
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MedCath Incorporated
Condensed Consolidated Balance Sheets
September 30, December 31,
--------------------- --------------------
1996 1996
--------------------- --------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 5,026,30 $ 7,122,549
Short-term investments 56,667,244 51,339,970
Accounts receivable, net of allowance 11,155,477 13,942,689
Medical supplies 1,549,029 1,567,873
Deferred income taxes 240,000 240,000
Prepaid expenses and other current assets 610,137 857,129
--------------------- --------------------
Total current assets 75,248,192 75,070,210
Property, plant and equipment, net of accumulated depreciation 72,303,824 82,843,333
Other assets 1,910,092 1,861,387
Start-up and organization costs, net of accumulated amortization 7,628,018 8,590,817
Advances to physician groups 5,609,178 5,626,313
Intangible assets, net of accumulated amortization 19,221,414 25,376,743
===================== ====================
Total assets $ 181,920,718 $ 199,368,803
===================== ====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,861,34 $ 2,382,030
Distribution payable to minority interests 629,352 814,209
Accrued liabilities 3,623,704 5,079,010
Current portion of long-term debt 1,931,455 1,847,805
Current portion of obligations under capital leases 392,713 392,713
--------------------- --------------------
Total current liabilities 9,438,567 10,515,767
Deferred income taxes 2,864,535 2,914,535
Long-term debt 43,841,641 57,056,487
Obligations under capital leases 2,053,797 1,971,756
--------------------- --------------------
Total liabilities 58,198,540 72,458,545
Minority interests in equity of consolidated entities 3,477,085 4,820,912
Shareholders' equity:
Common stock, $.01 par value, 20,000,000 shares authorized, and 11,121,326
and 11,146,749 shares issued and outstanding
at September 30, and December 31, 1996, respectively 111,213 111,467
Paid-in capital 108,897,931 108,987,674
Retained earnings 11,235,949 12,990,205
--------------------- --------------------
Total shareholders' equity 120,245,093 122,089,346
--------------------- --------------------
Total liabilities, minority interests and shareholders' equity $ 181,920,718 $ 199,368,803
===================== ====================
<FN>
See accompanying notes.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
MedCath Incorporated
Condensed Consolidated Statements of Cash Flows
Three Months Ended
December 31,
-------------------------------------
1995 1996
------------------ -----------------
<S> <C> <C>
Operating activities
Net Income $ 1,226,170 $ 1,754,256
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 946,005 2,276,753
Minority interest - (22,536)
Deferred income taxes 75,000 50,000
(Increase) decrease in current assets:
Accounts receivable (1,131,384) (2,787,212)
Medical supplies (182,196) (18,844)
Prepaid expenses and other current assets (134,129) (246,992)
Increase (decrease) in current liabilities:
Accounts payable 358,494 (479,313)
Distribution payable to minority interest (19,009) 184,857
Accrued liabilities 1,470,389 1,455,306
Other (132,235) (9,082)
----------------- -----------------
Net cash provided by operating activities 2,477,105 2,157,193
Investing activities
Purchases of property, plant and equipment (13,982,192) (12,027,674)
Start-up and organization costs (3,357,314) (1,488,971)
Advances to physician groups (555,000) (429,000)
Repayments of advances to physician groups 114,648 411,865
Net sales of short-term investments 6,290,532 5,327,274
----------------- ----------------
Net cash used in investing activities (11,489,326 (8,206,506)
Financing activities
Proceeds from issuance of long-term debt 9,728,468 9,204,153
Repayments of long-term debt (129,095) (524,929)
Repayments of convertible subordinated debt - (1,907,987)
Repayments of obligations under capital leases (520,523) (82,041)
Proceeds from issuance of common stock 5,664 89,997
Investments by minority partners 40,000 1,366,364
Payment of loan acquisition costs and deferred loan fees (318,056) -
------------------ -----------------
Net cash provided by financing activities 8,806,458 8,145,557
------------------ -----------------
Net increase (decrease) in cash and equivalents (205,763) 2,096,244
Cash and cash equivalents, beginning of period 6,821,728 5,026,305
------------------ -----------------
Cash and cash equivalents, end of period $ 6,615,965 $ 7,122,549
================== =================
<FN>
See accompanying notes.
</FN>
</TABLE>
5
<PAGE>
MedCath Incorporated
Notes to Unaudited Condensed Consolidated Financial Statements
For the Three Month Period Ended December 31, 1996
Note 1- General
The accompanying unaudited condensed consolidated financial statements of
MedCath Incorporated (the "Company") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions for Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, the statements of the unaudited interim periods
include all adjustments necessary for fair presentation of results for the
periods and all such adjustments are of a normal recurring nature. The
accompanying unaudited condensed consolidated results of operations for the
three month period ended December 31, 1996 are not necessarily indicative of the
results that may be expected for the year ending September 30, 1997. For further
information, refer to the audited consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for the
year ended September 30, 1996. Unless otherwise specified, capitalized terms
used herein are used as defined in such Annual Report on Form 10-K.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates and assumptions.
Note 2 - Net Income Per Share
The computation of primary and fully-diluted net income per share is based upon
the weighted average number of common shares and common equivalent shares, if
dilutive, outstanding during the period. The computation of fully-diluted net
income per share also takes into consideration the use of market price at the
end of the period, when higher than the average market price for the period.
Common stock equivalents represent the dilutive effect of the exercise of all
outstanding stock options and the assumed conversion of all outstanding
convertible debt. Fully-diluted net income per share is not presented because it
does not differ from primary net income per share.
Note 3 - Long-Term Debt
<TABLE>
<CAPTION>
Long term debt consisted of the following:
September 30, December 31,
1996 1996
--------------------------------------
<S> <C> <C>
McAllen REIT Loan $ 13,750,000 $ 13,750,000
Arkansas REIT Loan 19,757,558 25,559,664
Tucson REIT Loan 1,062,531 4,353,526
Convertible subordinated debt - 4,451,971
Notes payable to equipment lenders 10,689,071 10,298,142
Other notes payable 513,936 490,989
--------------------------------------
45,773,096 58,904,292
Less current portion (1,931,455) (1,847,805)
======================================
$ 43,841,641 $ 57,056,487
======================================
</TABLE>
6
<PAGE>
Note 3 - Long - Term Debt (continued)
As of December 31, 1996, approximately $18.0 million was available under the
Company's $20 million Revolver, as computed in accordance with the borrowing
base, and there were no amounts outstanding. The proceeds of the Revolver have
been and are to be used to meet ongoing working capital requirements and to
finance certain acquisitions approved by the lender.
The Revolver and REIT loan agreements contain certain restrictive covenants
which prohibit the payment of dividends and require the maintenance of specific
financial ratios and amounts. The Company was in compliance with these covenants
at December 31, 1996.
In October 1996, the Company issued a convertible subordinated promissory note
in the amount of $6.4 million in connection with the acquisition of a contract
to manage Heart Clinic, P.A. (See Note 4). In November 1996, $1.9 million of the
outstanding principal balance was paid in accordance with the terms of the note.
The remaining principal amount of the note is due and payable on October 1,
1998, in cash or in shares of common stock of the Company at a conversion price
of $14 per share. Interest is payable annually at a rate of 4% on the
outstanding principal. A contingent convertible subordinated promissory note was
also issued in October 1996 and the amount of the note will be based on
performance levels of the Heart Clinic physicians for the 1997 calendar year.
In December 1996, the Company obtained financing of up to $16 million in
installment notes payable to equipment lenders for the purpose of purchasing
equipment for the Arkansas Heart Hospital. At December 31, 1996 there were no
amounts outstanding under these notes. Through March of 1997, interest will be
payable monthly at the rate of 2.5% above the prime rate (as defined by the
lender). On April 1, 1997, the annual interest rate on all amounts outstanding
will convert to 9.62%. On April 1, 1997 the Company will begin making principal
and interest payments based on a five year amortization schedule.
Note 4 - Business Combinations and New Operations
In September 1996, the Company formed PMMI. In October 1996, PMMI entered into a
40-year contract to manage Heart Clinic, P.A., a multi-physician cardiologist
group located in McAllen, Texas. Total consideration given in connection with
the acquisition of the management contract was approximately $6.3 million
(subject to increase if certain base performance levels are exceeded in 1997 by
the physicians) and consisted of fixed and contingent promissory notes that are
partially convertible into the Company's common stock (see Note 3).
In January 1997, the Company announced it had formed a venture for the purpose
of constructing and operating the Arizona Heart Hospital to be located in
Phoenix, Arizona. The Company expects the total cost of constructing and
equipping the Arizona Heart Hospital to be approximately $35 million and plans
to open the hospital in fiscal year 1998.
7
<PAGE>
MedCath Incorporated
Management's Discussion and Analysis of Financial Condition and Results of
Operations For the Three Month Period Ended December 31, 1996
The following discussion and analysis is provided to increase the understanding
of, and should be read in conjunction with the Unaudited Condensed Consolidated
Financial Statements and accompanying notes. All References to a "Note" are to
the "Notes to Unaudited Condensed Consolidated Financial Statements" contained
herein. Unless otherwise specified, capitalized terms used herein are used as
defined in the Company's Annual Report on Form 10-K for the year ended September
30, 1996 and all references to the three month periods refer to the periods
ended December 31, 1995 and 1996, respectively.
Acquisitions and New Operations
In January 1997, the Company announced it had formed a venture for the purpose
of constructing and operating the Arizona Heart Hospital to be located in
Phoenix, Arizona. The Company expects the total cost of constructing and
equipping the Arizona Heart Hospital to be approximately $35 million and plans
to open the hospital in fiscal year 1998.
Results of Operations
The following table sets forth, for the periods presented, the percentage of the
Company's net revenue represented by the net revenue of each of the Company's
three divisions and by certain items reflected in the Unaudited Condensed
Consolidated Statements of Income:
<TABLE>
<CAPTION>
Three Months Ended
December 31,
--------------------------------
1995 1996
--------------------------------
<S> <C> <C>
Diagnostics Division 74.6% 40.9%
Practice Management Division 24.1 21.2
Hospital Division 1.3 37.9
--------------------------------
Total net revenue 100.0% 100.0%
Operating Expenses:
Medical supplies, personnel & other operating expense 58.6 64.5
Depreciation and amortization expense 8.2 9.8
Provision for doubtful accounts - 2.0
Marketing, general and administrative expense 12.1 8.3
--------------------------------
Total operating expenses 78.9 84.6
--------------------------------
Income from operations 21.1 15.4
Interest expense (1.5) (3.1)
Interest income 1.6 3.0
Minority interest in earnings of consolidated entities (3.2) (2.5)
Equity in earnings of unconsolidated subsidiaries .2 -
--------------------------------
Income before income taxes 18.2 12.8
Provision for income taxes (7.3) (5.1)
--------------------------------
Net income 10.9% 7.7%
================================
</TABLE>
8
<PAGE>
Results of Operations (continued)
Net revenue
Consolidated net revenue increased 103.9% to $22.9 million in fiscal year 1997
from $11.2 million in fiscal year 1996. Of this $11.7 million increase, $8.5
million was attributable to net revenue at the McAllen Heart Hospital, which
opened in January 1996, and the remainder of the increase in total net revenue
was the result of new operations in both the Diagnostics Division and
Practice Management Division, as well as increases in net revenue in existing
operations.
Net revenue in the Practice Management Division increased 80.0% to $4.8 million
in fiscal year 1997 from $2.7 million in fiscal year 1996 accounting for $2.2
million of the total increase in consolidated net revenue. This increase was
attributable to the acquisition of contracts to manage Mid-Atlantic, in February
1996, and Heart Clinic, in October 1996. Also contributing is the increase in
net revenue from the existing contract to manage AMC. The total number of
physicians under management in the Practice Management Division at this
quarter end is 76 compared with 55 at the same time last year.
Net revenue in the Diagnostics Division increased 11.6% to $9.3 million in
fiscal year 1997 from $8.3 million in fiscal year 1996 and accounted for $1.0
million of the total increase in net revenue. Net revenue from Fixed-Site
Facilities increased 16.5% primarily as the result of three new facilities in
the Diagnostics Division. Net revenue from operation of Mobile Cath Labs
increased 4.7% as the result of an increase in the total number of procedures
performed in the labs as well as the addition of several new hospital contracts.
The number of Fixed-Site Facilities increased from 5 in fiscal year 1996 to
8 in fiscal year 1997 while mobile cath labs operated by the Company remained at
23 in both fiscal year 1996 and fiscal year 1997.
Operating Expenses and Income from Operations
Total operating expenses increased 118.6% to $19.3 million in fiscal year 1997
from $8.8 million in fiscal year 1996. The increase was primarily attributable
to operating expenses at the McAllen Heart Hospital, expenses incurred in
managing Mid-Atlantic and Heart Clinic and added operating expenses in the
Diagnostic Division for three new Fixed-Site Facilities. Income from operations
increased 49.0% to $3.5 million in fiscal year 1997 from $2.4 million in 1996.
Operating margins decreased to 15.4% in fiscal year 1997 from 21.1% in fiscal
year 1996 and EBITDA margins decreased to 25.2% in fiscal year 1997 from 29.3%
in fiscal year 1996. These decreases were primarily due to the operating
expenses associated with the McAllen Heart Hospital and the growth in the
Practice Management Division, which operates at lower margins than those
realized in the Diagnostics Division.
Income from operations in the Practice Management Division increased 71.6% to
$530,000 in fiscal year 1997 from $309,000 in fiscal year 1996. The increase is
attributable to income from managing Mid-Atlantic and Heart Clinic as well as
increased operating income from managing AMC. Operating margins in the Practice
Management Division decreased to 10.9% in fiscal year 1997 from 11.5% in fiscal
year 1996 as a result of the expenses associated with managing Heart Clinic and
Mid-Atlantic and the structure of the related contracts. EBITDA margins in the
Practice Management Division remained constant at 13.2% for the three month
period ended December 31, 1995 and 1996.
Income from operations in the Diagnostics Division increased 14.5% to $3.3
million in fiscal year 1997 from $2.9 million in fiscal year 1996. The increase
is due primarily to three new Fixed-Site Facilities that commenced operations
since September 1996. Operating margins and EBITDA margins in the Diagnostics
Division remained constant for the same three month period in 1996, at 34%
and 45%, respectively.
9
<PAGE>
Marketing, general and administrative expenses in fiscal year 1997 increased
39.8% over fiscal year 1996 primarily as a result of the Company's continued
investment in corporate infrastructure to facilitate growth. During the last
year, the Company added both a human resources and an information systems
department, as well as additional development and finance personnel. The
remainder of the increase was attributable to increased professional fees
associated with pursuing business development opportunities, the addition of
administrative and accounting personnel to support growth and increases in
salaries.
Interest Expense and Interest Income
Interest expense increased $535,000 in fiscal year 1997 over fiscal year 1996,
primarily as the result of interest incurred on borrowings used to finance
the McAllen Heart Hospital. Substantially all of the property, plant and
equipment at the hospital were financed using borrowings that bear interest at
rates ranging from 8.54% to 10.19%. Interest income increased $492,000 in fiscal
year 1997 compared with fiscal year 1996 due to additional investment income
earned on cash and short term investments.
Minority Interest in Earnings of Consolidated Entities
Minority interest in earnings of consolidated entities for the three months
ended December 31, 1995 and 1996 was $362,000 and $570,000, respectively, an
increase of $208,000 or 57.5%. In developing certain Fixed-Site Facilities,
Heart Hospitals and Mobile Cath Labs the Company has entered into several
partnerships and limited liability companies ("LLC's"). The full results of
operations of these partnerships and LLC's are included in the Company's income
before income taxes. Any increase or decrease in the minority interest in these
entities earnings is directly attributable to the results of operations of these
entities.
Liquidity and Capital Resources
Operating Cash Flows
Net cash provided by operating activities was $2.2 million for the three months
ended December 31, 1996. Accounts receivable increased $2.8 million during the
three months ended December 31, 1996. This increase was the result of increased
revenues in the three divisions and the additional receivables from new
consolidating entities. At December 31, 1996, the Company had working capital of
$64.6 million, including $58.5 million of cash and short-term investments and
$13.9 million in accounts receivable.
Investing Cash Flows
During the three months ended December 31, 1996, the Company utilized a net of
$8.2 million in investing activities primarily for the construction, purchase of
equipment and start-up costs for the Company's Heart Hospitals; consisting of
$8.1 million for the Arkansas Heart Hospital, $2.8 million for the Tucson Heart
Hospital and $2.6 million for the Company's other operations. Offsetting these
outflows was $5.3 million on the sale of short term investments.
Financing Cash Flows
Financing activities provided $8.1 million during the three month period ended
December 31, 1996, primarily from loan proceeds for construction on the Arkansas
and Tucson Heart Hospitals. Investments from minority partners in the
Bakersfield Heart Hospital also provided additional financing proceeds this
quarter. The repayment of a portion of the convertible subordinated debt (see
Note 3), long term debt and capital leases somewhat offset the $9.2 million of
proceeds this quarter.
10
<PAGE>
The Company has formed a venture for the purpose of constructing and operating
the Arizona Heart Hospital. The Company anticipates the total cost of
constructing and equipping the Arizona Heart Hospital will be approximately
$35.0 million and that construction will begin on the hospital in fiscal year
1997. Financing for construction of this hospital has not been obtained.
The Company expects that each of its Heart Hospitals will require working
capital advances to fund a portion of the pre-opening costs and to fund the
operations subsequent to opening in the initial start-up phase of the hospital.
Substantial investments will be required during the development phase, and
operating losses and negative cash flow will be incurred during the initial
operation of each Heart Hospital.
In September 1996, the Company formed PMMI, which in October 1996, entered into
a 40-year contract to manage Heart Clinic, P.A., a multi-physician cardiologist
group located in McAllen, Texas. Total consideration given in connection with
the acquisition of the management contract was approximately $6.3 million
(subject to increase if certain base performance levels are exceeded in 1997 by
the physicians) and consisted of fixed and contingent promissory notes that are
partially convertible into the Company's common stock (see Note 3).
As of December 31, 1996, approximately $18.0 million was available under the
Company's $20 million Revolver, as computed in accordance with the borrowing
base, and there were no amounts outstanding. The proceeds of the Revolver have
been and are to be used to meet ongoing working capital requirements and to
finance certain acquisitions approved by the lender.
The Company anticipates financing its future operations through a combination of
amounts available under the Revolver, financing from other real estate lenders
and various equipment lenders, capital contributions by minority partners, cash
reserves, short-term investments and operating cash flows. The Company believes
the combination of these sources will be sufficient to meet the Company's
currently anticipated Heart Hospital development, acquisition and working
capital needs through fiscal year 1997. In addition, in order to provide funds
necessary for the continued pursuit of its business strategy, the Company
expects to incur, from time to time, additional indebtedness to banks and other
financial institutions and to issue, in public or private transactions, equity
and debt securities. The availability and terms of any such financing will
depend upon market and other conditions. There can be no assurance that such
additional financing will be available on terms acceptable to the Company.
11
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule (EDGAR version only)
(b) Reports on Form 8-K filed during the three months ended
December 31, 1996 are as follows:
Date of Report Items Reported
October 2, 1996 Item 5. OTHER EVENTS
October 4, 1996 Item 5. OTHER EVENTS
November 14, 1996 Item 5. OTHER EVENTS
12
<PAGE>
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.
MEDCATH INCORPORATED
Date Signature and Title
January 28, 1997 /s/ Richard J. Post
-----------------------
Richard J. Post
Chief Financial Officer, Secretary
and Treasurer
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Condensed Consolidated Statement of Financial Condition at December 31, 1996
(Unaudited) and the Condensed Consolidated Statement of Income for the
three months ended December 31, 1996 (Unaudited) and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000931782
<NAME> MedCath Incorporated
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-Mos
<FISCAL-YEAR-END> Sep-30-1997
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<CASH> 7,122,549
<SECURITIES> 51,339,970
<RECEIVABLES> 14,495,603
<ALLOWANCES> (552,914)
<INVENTORY> 1,567,873
<CURRENT-ASSETS> 75,070,210
<PP&E> 97,061,815
<DEPRECIATION> (14,218,482)
<TOTAL-ASSETS> 199,368,803
<CURRENT-LIABILITIES> 10,515,767
<BONDS> 57,056,487
0
0
<COMMON> 111,467
<OTHER-SE> 121,977,879
<TOTAL-LIABILITY-AND-EQUITY> 199,368,803
<SALES> 0
<TOTAL-REVENUES> 22,854,453
<CGS> 0
<TOTAL-COSTS> 14,739,757
<OTHER-EXPENSES> 4,142,522
<LOSS-PROVISION> 450,967
<INTEREST-EXPENSE> (702,413)
<INCOME-PRETAX> 2,923,760
<INCOME-TAX> 1,169,504
<INCOME-CONTINUING> 1,754,256
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,754,256
<EPS-PRIMARY> 0.15
<EPS-DILUTED> 0.15
</TABLE>
