10-Q/A 1 g73641ae10-qa.txt GOLF HOST RESORTS, INC. FORM 10-Q/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------------- For Quarter Ended March 31, 2000 Commission File no. 2-64309 GOLF HOST RESORTS, INC. ----------------------- (Exact name of registrant as specified in its charter) Colorado 84-0631130 ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 36750 US 19 N., Palm Harbor, Florida 34684 -------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (727) 942-2000 ---------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding twelve months, and (2) has been subject to the filing requirements for the past 90 days. - Yes [X] No [ ] Issuer has no common stock subject to this report. Page 1 of 18 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) BALANCE SHEETS MARCH 31, 2000 AND DECEMBER 31, 1999 ASSETS (SUBSTANTIALLY ALL PLEDGED)
MARCH 31, DECEMBER 31, 2000 1999 ----------- ------------ (unaudited) CURRENT ASSETS: Cash $ 241,025 $ 131,440 Restricted cash 385,970 318,860 Accounts receivable, net 7,503,418 4,499,990 Other receivables 1,143,504 907,568 Inventories and supplies 1,575,329 1,755,452 Prepaid expenses and other assets 955,045 132,116 ----------- ----------- 11,804,291 7,745,426 Assets held for sale 8,634,596 8,634,596 ----------- ----------- Total current assets 20,438,887 16,380,022 INTANGIBLES, net 26,608,874 26,994,645 PROPERTY AND EQUIPMENT, net 42,734,161 43,205,256 OTHER ASSETS 326,485 315,851 ----------- ----------- $90,108,407 $86,895,774 =========== ===========
The accompanying notes are an integral part of these consolidated financial statements. Page 2 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) BALANCE SHEETS MARCH 31, 2000 AND DECEMBER 31, 1999 LIABILITIES AND SHAREHOLDER'S DEFICIT
MARCH 31, DECEMBER 31, 2000 1999 ------------- ------------- (unaudited) CURRENT LIABILITIES: Accounts payable $ 6,104,334 $ 5,039,225 Line of credit 378,562 2,109,316 Accrued payroll costs 1,176,587 899,750 Accrued interest 724,584 691,265 Accrued expenses 4,947,529 3,214,321 Deposits and prepaid fees 2,717,333 2,841,038 Current notes payable 804,160 795,205 Due to related parties 2,789,533 1,994,645 ------------- ------------- Total current liabilities 19,642,622 17,584,765 NOTES PAYABLE 83,734,874 83,829,220 OTHER LONG-TERM LIABILITIES 5,327,422 5,168,028 DEFERRED INCOME TAXES 1,770,467 1,770,467 ------------- ------------- Total liabilities 110,475,385 108,352,480 ------------- ------------- SHAREHOLDER'S DEFICIT Common stock, $1 par, 5,000 shares authorized, issued, and outstanding 5,000 5,000 5.6% cumulative preferred stock, $1 par, 4,577,000 shares authorized, issued, and outstanding 4,577,000 4,577,000 Paid-in capital (13,557,000) (13,557,000) Accumulated deficit (11,391,978) (12,481,706) ------------- ------------- Total shareholder's deficit (20,366,978) (21,456,706) ------------- ------------- Total liabilities and shareholder's deficit $ 90,108,407 $ 86,895,774 ============= =============
The accompanying notes are an integral part of these consolidated financial statements. Page 3 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) STATEMENTS OF INCOME FOR THE QUARTERS ENDED MARCH 31, 2000 AND 1999
QUARTERS ENDED MARCH 31, 2000 1999 ------------ ----------- (unaudited) REVENUES: Resort facilities $ 7,468,973 $ 9,146,497 Food and beverage 5,344,391 5,142,353 Golf 5,373,588 6,144,632 Other 1,638,747 2,254,204 ------------ ----------- 19,825,699 22,687,686 ------------ ----------- COST AND OPERATION EXPENSES: Resort facilities 4,862,303 5,433,259 Food and beverage 2,871,786 2,956,953 Golf 2,053,380 2,084,388 Other 2,851,283 3,762,979 General and administrative 1,831,251 3,341,497 Depreciation and amortization 955,772 1,050,111 ------------ ----------- 15,425,775 18,629,187 ------------ ----------- INCOME BEFORE INCOME/(LOSS) ON ASSETS HELD FOR SALE 4,399,924 4,058,499 INCOME/(LOSS) ON ASSETS HELD FOR SALE (798,837) 821,864 ------------ ----------- OPERATING INCOME 3,601,087 4,880,363 INTEREST, NET 2,447,282 2,385,938 ------------ ----------- INCOME BEFORE DIVIDEND REQUIREMENTS ON PREFERRED STOCK 1,153,805 2,494,425 DIVIDEND REQUIREMENTS ON PREFERRED STOCK 64,077 64,077 ------------ ----------- NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 1,089,728 $ 2,430,348 ============ =========== EARNINGS PER COMMON SHARE $ 217.96 $ 486.07 ============ ===========
The accompanying notes are an integral part of these consolidated financial statements. Page 4 GOLF HOST RESORTS, INC AND SUBSIDIARY CONSOLIDATED STATEMENTS OF SHAREHOLDER'S DEFICIT FOR THE FIFTEEN MONTHS ENDED MARCH 31, 2000
$1 Par Value 5.6% Cumulative Common Stock Preferred Stock Total ---------------- ----------------------- Paid-In Retained Shareholder's Shares Amount Shares Amount Capital Deficit Deficit ------ ------ --------- ---------- ------------ ------------ ------------ Balance, December 31, 1998 5,000 5,000 4,577,000 4,577,000 (13,557,000) 1,940,766 (7,034,234) Net loss available to common shareholder -- -- -- -- -- (7,453,219) (7,453,219) Distribution to shareholder -- -- -- -- -- (6,969,253) (6,969,253) ----- ------ --------- ---------- ------------ ------------ ------------ Balance, December 31, 1999 5,000 5,000 4,577,000 4,577,000 (13,557,000) (12,481,706) (21,456,706) Net income available to common shareholder -- -- -- -- -- 1,089,728 1,089,728 ----- ------ --------- ---------- ------------ ------------ ------------ Balance, March 31, 2000 5,000 $5,000 4,577,000 $4,577,000 $(13,557,000) $(11,391,978) $(20,366,978) ===== ====== ========= ========== ============ ============ ============
The accompanying notes are an integral part of these consolidated financial statements. Page 5 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
2000 1999 ----------- ----------- (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income before dividend requirements on preferred stock $ 1,153,805 $ 2,494,425 Noncash items included in income: Depreciation and amortization 955,772 1,091,471 Write-off of startup costs -- 1,644,443 Changes in operating working capital (233,702) (4,959,277) ----------- ----------- Cash provided by operations 1,875,875 271,062 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: (Increase) in other assets (10,634) -- Purchases of property and equipment (98,905) (682,051) Decrease in assets held for sale -- 2,455,710 ----------- ----------- Cash provided by (used in) investing activities (109,539) 1,773,659 ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Increase/(decrease) in notes payable 8,955 (87,682) Additional borrowings on existing debt -- 303,416 Repayment of existing debt (94,346) -- Repayment of line of credit (1,730,754) (3,832,384) Increases in other long-term liabilities 159,394 247,766 ----------- ----------- Cash provided by (used in) financing activities (1,656,751) (3,368,884) ----------- ----------- NET INCREASE (DECREASE) IN CASH 109,585 (1,324,163) CASH, BEGINNING OF PERIOD 131,440 1,396,404 ----------- ----------- CASH, END OF PERIOD $ 241,025 $ 72,241 =========== =========== NONCASH FINANCING AND INVESTING ACTIVITIES: The Company satisfied its preferred stock dividend liability to GHI through the intercompany account $ 64,077 $ 64,077 =========== ===========
The accompanying notes are an integral part of these consolidated financial statements. Page 6 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 AND 1999 (1) ORGANIZATION, BUSINESS, LIQUIDITY AND ACCOUNTING POLICIES During the quarter, there was no significant change from the 10-K filing on December 31, 1999. Financial Statement Presentation Certain reclassifications have been made to the March 2000 financial statements to conform to the December 1999 presentation. (2) LONG-TERM OBLIGATIONS Long-term obligations consist of the following:
MARCH 31, DECEMBER 31, 2000 1999 ------------ ------------ Participating mortgage note at varying pay rates maturing in 2027 $ 69,975,000 $ 69,975,000 $9,000,000 participation mortgage note credit facility 9,000,000 9,000,000 Mortgage note at 6.34%, maturing in 2002 4,417,764 4,417,764 Capital leases 1,146,270 1,231,661 ------------ ------------ 84,539,034 84,624,425 Less current maturities (804,160) (795,205) ------------ ------------ $ 83,734,874 $ 83,829,220 ============ ============
Page 7 GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS For purposes of discussing comparative results of operations for 2000 and 1999, the results of operations of Tamarron, which are included in Income/(Loss) on Assets Held for Sale, are also utilized. Guest occupancy for the quarter declined 7,204 room nights or 13.6% from the level of the prior year. On a divisional basis, Innisbrook's and Tamarron's occupancy declined by 13.5% and 13.9% respectively. Innisbrook's reduction reflects a 6,900-room night reduction in conference business offset by a 1,500-room night increase in transient business. Reduced rental pool participation at Innisbrook has reduced the average daily available room night to sell by 16.5%. This in turn has negatively impacted the Resort's ability to attract large group business. Tamarron's occupancy was down in both transient and group business at 750 and 250 room nights respectively. Revenues from resort operations on a per occupied room basis increased by 1.1% to $432.76 from $427.94. The improved guest spending is primarily attributed to Tamarron, which enjoyed a 5.2% improvement in gross operating revenues despite fewer room nights. Average daily room rates declined at both properties. Innisbrook's average daily rates declined $11.09 or 5.6% while Tamarron's declined $10.68 or 12.2%. Reductions in room rates reflect the continuing need to elevate the rooms to a competitive standard and the focus at Innisbrook on driving valuable golf business into the property. Food and Beverage revenues increased by approximately $202,000 over the prior year or an average of 13.5% per meal served. This increase occurred primarily at the Innisbrook property and reflects the utilization of enhanced amenities and varying theme restaurants available at this property. This increase is net of a decrease in the number of meals served of 8.3% or 21,900. Gross golf revenue for the quarter was down $771,000 or 12.5% from the prior year. This change relates entirely to the Innisbrook property, as the Tamarron facility does not have its golf course open during the first quarter. Similar to room revenues, the utilization of the golf courses is constrained by the reduced availability of room nights, which in turn restricts golf package availability. Management has restructured its sales and marketing department to address this issue and continues to work with the Rental Pool representatives to increase participation by the condominium owners in the Rental Pool. During 1999, one lot sale closed at the Tamarron property while no closings occurred during the first quarter of 2000. It is expected that nine new lots will close at Tamarron during the fourth quarter of 2000. In 1999, at the Innisbrook property, approximately thirty-five acres of undeveloped non-operating land was sold in the first quarter. No similar land sales have occurred in 2000. All of the real estate activities for 2000 and 1999 are included in Income/(Loss) as Assets Held for Sale in the statement of operation. As required by SOP 98-8, during the first quarter of 1999, the Company recognized a one time write-off of approximately $1,644,000 of other assets comprises of capitalized start up costs relative to the changes in the management at Innisbrook and Tamarron. This write-off is included in general and administrative expense in the statement of operations. Exclusive of this adjustment, costs and expenses, while being aggressively managed, increased by 3.3% as compared to total revenues. This percentage increase reflects the fixed maintenance and support costs of the golf courses and other amenities. On a divisional basis, Innisbrook's costs as a percentage of gross revenue grew 3.9% while Tamarron's decreased by 9.2%. Page 8 FINANCIAL CONDITION AND LIQUIDITY The company's working capital position (exclusive of Assets Held for Sale) was a deficit of $7,838,331 as compared to a deficit of $9,839,339 at December 31, 1999. The Company typically experiences seasonal fluctuations in its net working capital position without normally impairing its ability to pay trade creditors in a timely manner and satisfy its financial obligations in an orderly fashion. In addition, the Company's short-term working capital needs are supported by a $3,000,000 Accounts Receivable revolving credit facility along with a minimum funding guarantee by the management company. Based on existing cash levels and the additional cash sources noted above, the Company assesses its liquidity as satisfying. Page 9 PART II - OTHER INFORMATION Item 1. Legal Proceedings Registrant is not currently involved in material legal proceedings other than ordinary routine litigation incidental to its business. Item 2. Changes in Securities Not applicable. Item 3. Defaults Upon Senior Securities Not applicable. Item 4. Submission of matters to a Vote of Security Holders Not applicable. Item 5. Other Information Pursuant to an agreement with the SEC staff, included in this 10-Q filing are unaudited financial statements of the Innisbrook Rental Pool Lease Operation and the Tamarron Rental Pool Lease Operation for the quarter and three months ended March 31, 2000 and 1999 Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27 Financial Data Schedule (for SEC use only) (b) Reports on Form 8-K None Page 10 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. GOLF HOST RESORTS, INC. Date: 12/24/01 By: /s/ Merrick Kleeman --------------------------- ----------------------------------- Merrick Kleeman President Date: 12/24/01 By: /s/ R. Keith Wilt --------------------------- ----------------------------------- R. Keith Wilt Vice President and Treasurer Page 11 RENTAL POOL LEASE OPERATIONS The following unaudited financial statements of the Innisbrook Rental Pool Lease Operation and the Tamarron Rental Pool Lease Operation (the Rental Pools) are for the quarters and three months ended March 31, 2000 and 1999. The operations of the Rental Pools are tied closely to that of Golf Host Resorts, Inc. (the Company), and provide for distribution of a percentage of the Company's room revenues, as defined in the Rental Pool Master Lease Agreements, to participating condominium owners (Participants). The operations of the Rental Pools are more fully discussed in Form 10-K, for the fiscal year ended December 31, 1999 (file No. 2-64309). Page 12 INNISBROOK RENTAL POOL LEASE OPERATION BALANCE SHEETS MARCH 31, 2000 AND 1999 DISTRIBUTION FUND
2000 1999 ----------- ----------- ASSETS RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION $ 2,897,744 $ 3,409,662 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 55,985 25,319 ----------- ----------- $ 2,953,729 $ 3,434,981 =========== =========== LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION 2,509,458 2,920,327 DUE TO MAINTENANCE ESCROW FUND 444,271 514,654 PARTICIPANTS' FUND BALANCES -- -- ----------- ----------- $ 2,953,729 $ 3,434,981 =========== =========== MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 3,673,304 $ 2,134,365 RECEIVABLE FROM DISTRIBUTION FUND 444,271 514,654 INVENTORY 2,924,558 80,850 INTEREST RECEIVABLE 37,090 34,068 ----------- ----------- $ 7,079,223 $ 2,763,937 =========== =========== LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 10,312 $ 2,006 INTEREST PAYABLE TO DISTRIBUTION FUND 55,985 25,319 CARPET CARE RESERVE (5,217) (5,532) PARTICIPANTS' FUND BALANCES 7,018,143 2,742,144 ----------- ----------- $ 7,079,223 $ 2,763,937 =========== ===========
These statements were prepared from the books and records of the Rental Pool without audit (and in the opinion of management) include all adjustments which are necessary for a fair presentation. Page 13 INNISBROOK RENTAL POOL LEASE OPERATION STATEMENTS OF OPERATIONS FOR THE QUARTERS ENDED MARCH 31, 2000 AND 1999 DISTRIBUTION FUND
YEAR-TO-DATE ----------------------------- 2000 1999 ----------- ----------- GROSS REVENUES $ 7,375,156 $ 8,709,634 ----------- ----------- DEDUCTIONS: Agents' commissions 365,388 438,440 Credit Card fees 48,363 63,171 Audit fees 3,250 3,250 ----------- ----------- 417,001 504,861 ----------- ----------- ADJUSTED GROSS REVENUES 6,958,155 8,204,773 AMOUNT RETAINED BY LESSEE (3,468,161) (4,089,402) ----------- ----------- GROSS INCOME DISTRIBUTION 3,489,994 4,115,371 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Management fee (384,566) (453,946) Marketing fee (209,763) (247,607) Miscellaneous pooled expense (22,794) (45,737) Corporate complimentary occupancy fees 10,411 8,317 Westin Associate room fees 18,374 12,831 Occupancy fees (498,011) (552,659) Advisory Committee expenses (8,040) (6,416) ----------- ----------- NET INCOME DISTRIBUTION 2,395,605 2,830,154 ADJUSTMENTS TO NET INCOME DISTRIBUTION: Occupancy fees 498,011 552,659 Hospitality suite fees -- 189 Greens fees 3,378 4,046 Additional participation credit 750 960 ----------- ----------- AMOUNT AVAILABLE FOR DISTRIBUTION TO PARTICIPANTS $ 2,897,744 $ 3,388,008 =========== =========== Average daily distribution $ 49.77 $ 48.57 Average room rate $ 186.05 $ 189.97 Occupied room nights 39,641 45,847 Available room nights 58,228 69,756 Occupancy percentage 68.1% 65.7% Average number of available units 640 775
These statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 14 INNISBROOK RENTAL POOL LEASE OPERATION STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS ENDED MARCH 31, 2000 AND 1999 DISTRIBUTION FUND
YEAR-TO-DATE 2000 1999 ----------- ----------- BALANCE, beginning of period $ -- $ -- ADDITIONS: Amount available for distribution 2,897,744 3,388,008 Interest received or receivable from Maintenance Escrow Fund 55,985 25,319 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (444,271) (514,654) Amounts accrued or paid to participants (2,509,458) (2,898,673) ----------- ----------- BALANCE, end of period $ -- $ -- =========== =========== MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 7,021,346 $ 2,505,110 ADDITIONS: Amounts withheld from occupancy fees 444,271 493,000 Interest earned 55,985 25,319 Charges to participants to establish or restore escrow balances 48,178 65,525 REDUCTIONS: Maintenance charges (101,718) (118,344) Carpet care reserve deposit (19,903) (11,054) Interest accrued or paid to Distribution Fund (55,985) (25,319) Refunds to participants as prescribed by the master lease agreements (374,031) (192,093) ----------- ----------- BALANCE, end of period $ 7,018,143 $ 2,742,144 =========== ===========
These statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 15 TAMARRON RENTAL POOL LEASE OPERATION BALANCE SHEETS MARCH 31, 2000 AND 1999 DISTRIBUTION FUND
2000 1999 -------- --------- ASSETS CASH $ 1,000 $ 1,000 RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION 183,456 251,795 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 143 -- -------- --------- $184,599 $ 252,795 ======== ========= LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION $142,218 $ 170,962 DUE TO MAINTENANCE ESCROW FUND 42,381 81,833 -------- --------- $184,599 $ 252,795 ======== ========= MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $121,540 $ 60,224 DUE FROM DISTRIBUTION FUND 42,381 81,833 INVENTORY: Linen 21,168 63,695 Materials and supplies 7,113 (9,039) DEPOSITS 9,670 -- -------- --------- $201,872 $ 196,713 ======== ========= LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 12,247 $ 3,099 INTEREST PAYABLE TO DISTRIBUTION FUND 143 -- PARTICIPANTS' FUND BALANCES 189,482 193,614 -------- --------- $201,872 $ 196,713 ======== =========
These statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 16 TAMARRON RENTAL POOL LEASE OPERATION STATEMENTS OF OPERATIONS FOR THE QUARTERS ENDED MARCH 31, 2000 AND 1999 DISTRIBUTION FUND
YEAR-TO-DATE ------------------------- 2000 1999 --------- --------- GROSS REVENUES $ 429,886 $ 592,897 --------- --------- DEDUCTIONS: Agents' commissions 28,219 36,325 Sales and marketing expenses 32,241 44,467 Audit fees 3,255 3,255 --------- --------- 63,715 84,047 --------- --------- ADJUSTED GROSS REVENUES 366,171 508,850 MANAGEMENT FEE (183,085) (254,425) --------- --------- GROSS INCOME DISTRIBUTION 183,086 254,425 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Corporate complimentary occupancy fees 533 653 Occupancy fees (62,157) (73,444) Designated items (10,301) (44,109) Advisory Committee expenses (163) (3,282) --------- --------- POOLED INCOME 110,998 134,243 ADJUSTMENTS TO POOLED INCOME: Occupancy fees 62,157 73,444 --------- --------- NET INCOME DISTRIBUTION $ 173,155 $ 207,687 ========= ========= Average daily distribution $ 7.32 $ 8.43 Average room rate $ 67.66 $ 79.30 Room nights 6,354 7,477 Occupancy percentage 26.9% 30.3% Average number of available units 260 274
These statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 17 TAMARRON RENTAL POOL LEASE OPERATION STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS ENDED MARCH 31, 2000 AND 1999 DISTRIBUTION FUND
YEAR-TO-DATE 2000 1999 --------- --------- BALANCE, beginning of period $ -- $ -- ADDITIONS: Amounts available for distribution 173,155 207,687 Interest received or receivable from Maintenance Escrow Fund 143 -- REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (31,080) (36,725) Amounts accrued or paid to participants (142,218) (170,962) --------- --------- BALANCE, end of period $ -- $ -- ========= ========= MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 188,338 $ 174,111 ADDITIONS: Amounts withheld from occupancy fees 31,080 36,725 Interest earned 143 -- Reimbursement of designated items 10,301 44,109 Charges to participants to establish or restore escrow balances 7,479 12,828 REDUCTIONS: Maintenance and inventory charges (29,182) (18,408) Refurbishing charges -- (2,974) Interest accrued or paid to Distribution Fund (143) -- Designated items (10,301) (44,109) Refunds to participants as prescribed by Master Lease Agreement (8,233) (8,668) --------- --------- BALANCE, end of period $ 189,482 $ 193,614 ========= =========
These statements were prepared from the books and records of the Rental Pool without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 18