-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WH8fxBqeQCOO/fNhVTSPMsJRYOpj07txLA61SjOCXwUqjHTDjqRgpzk5FubqSnwa ejLAFyNKFD4vChBmL5oBJg== 0000950144-96-008236.txt : 19961118 0000950144-96-008236.hdr.sgml : 19961118 ACCESSION NUMBER: 0000950144-96-008236 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLF HOST RESORTS INC CENTRAL INDEX KEY: 0000042429 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 840631130 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 002-64309 FILM NUMBER: 96664251 BUSINESS ADDRESS: STREET 1: P O DRAWER 3131 CITY: DURANGO STATE: CO ZIP: 81302 BUSINESS PHONE: 3032592000 MAIL ADDRESS: STREET 1: P O BOX 1088 CITY: TARPON SPRINGS STATE: FL ZIP: 34688-1088 FORMER COMPANY: FORMER CONFORMED NAME: TAMARRON INC DATE OF NAME CHANGE: 19870405 FORMER COMPANY: FORMER CONFORMED NAME: GOLF HOST WEST INC /D/B/A/ TAMARRON DATE OF NAME CHANGE: 19840330 10-Q 1 GOLF HOST RESORTS FORM 10-Q 1 F O R M 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ____________________ Quarterly Report Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934 ____________________ For Quarter Ended September 30, 1996 Commission File No. 2-64309 GOLF HOST RESORTS, INC. STATE OF COLORADO EMPLOYER IDENTIFICATION NO. 84-0631130 Post Office Drawer 3131, Durango, Colorado 81302 Telephone Number (303) 259-2000 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 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 20 2 GOLF HOST RESORTS, INC. BALANCE SHEETS SEPTEMBER 30, 1996 AND DECEMBER 31, 1995 ASSETS (Substantially all pledged - Notes 2 and 3)
SEPTEMBER 30, DECEMBER 31, 1996 1995 ----------------- --------------- CURRENT ASSETS: Cash $ 981,269 $ 312,603 Accounts receivable 4,756,058 4,471,677 Notes receivable 104,203 627,817 Inventories and supplies 4,845,432 4,392,498 Prepaid expenses and other 1,273,682 1,207,186 Intercompany receivables 718,874 567,455 ---------------- --------------- Total current assets 12,679,518 11,579,236 ---------------- --------------- LONG-TERM RECEIVABLES, less amounts currently due 951,171 1,011,871 PROPERTY AND EQUIPMENT, at cost, less accumulated depreciation 39,936,373 40,231,020 ---------------- --------------- $ 53,567,062 $ 52,822,127 ================ ===============
The accompanying notes are an integral part of these balance sheets. These statements were prepared from the books and records of the Company without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 2 3 GOLF HOST RESORTS, INC. BALANCE SHEETS SEPTEMBER 30, 1996 AND DECEMBER 31, 1995 LIABILITIES AND SHAREHOLDERS' INVESTMENT
SEPTEMBER 30, DECEMBER 31, 1996 1995 ---------------- ------------- CURRENT LIABILITIES: Notes payable $ 613,191 $ 1,285,773 Maturing long-term obligations 2,902,030 1,854,401 Accounts payable 2,191,030 1,911,052 Accrued expenses 4,149,577 4,274,085 Deposits and prepaid fees 2,369,171 2,681,066 ---------------- ------------- Total current liabilities 12,224,999 12,006,377 ---------------- ------------- LONG-TERM OBLIGATIONS, less current maturities 18,680,395 20,659,348 ---------------- ------------- LONG-TERM INTERCOMPANY 4,973,718 4,124,210 ---------------- ------------- LONG-TERM CONTINGENCY 2,185,916 2,077,759 ---------------- ------------- SHAREHOLDERS' INVESTMENT: Common stock, $1 par, 5,000 shares authorized and out- standing 5,000 5,000 5.6% cumulative preferred stock, $1 par, 4,577,000 shares authorized and outstanding 4,577,000 4,577,000 Paid-in capital 2,329,447 2,329,447 Retained earnings 8,590,587 7,042,986 ---------------- ------------- Total shareholders' investment 15,502,034 13,954,433 ---------------- ------------- $ 53,567,062 $ 52,822,127 ================ =============
The accompanying notes are an integral part of these balance sheets. These statements were prepared from the books and records of the Company without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 3 4 GOLF HOST RESORTS, INC. STATEMENTS OF INCOME (LOSS) FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 Quarters Ended September 30, --------------------------------------------- 1996 1995 ----------------- ---------------- REVENUES: Hotel $ 3,978,191 $ 3,665,987 Food and beverage 2,923,444 2,690,793 Golf 2,801,712 2,635,659 Other 1,303,403 1,253,125 Real Estate Activity 671,105 397,327 ---------------- ---------------- 11,677,855 10,642,891 ---------------- ---------------- COSTS AND OPERATING EXPENSES: Hotel 3,570,192 3,272,684 Food and beverage 2,265,814 2,180,122 Golf 1,320,423 1,303,537 Other 3,940,124 3,617,656 General and administrative 902,864 939,581 Real Estate Activity 279,750 231,154 ---------------- ---------------- 12,279,167 11,544,734 ---------------- ---------------- OPERATING INCOME (LOSS) (601,312) (901,843) INTEREST, NET 494,740 528,292 ---------------- ---------------- INCOME (LOSS) BEFORE INCOME TAXES (1,096,052) (1,430,135) PARENT INCOME TAX CHARGE (CREDIT) (412,400) (525,400) ---------------- ---------------- NET INCOME (LOSS) BEFORE DIVIDEND REQUIREMENTS ON PREFERRED STOCK (683,652) (904,735) DIVIDEND REQUIREMENTS ON PREFERRED STOCK 64,078 63,900 ---------------- ---------------- NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ (747,730) $ (968,635) ================ ================ EARNINGS (LOSS) PER COMMON SHARE $ (149.55) $ (193.73) ================ ================
Nine Months Ended September 30, ---------------------------------------------- 1996 1995 ------------------ ---------------- REVENUES: Hotel $ 14,853,314 $ 14,907,634 Food and beverage 11,497,395 11,569,877 Golf 12,321,416 12,324,758 Other 4,960,517 5,091,216 Real Estate Activity 656,817 397,327 ------------------ ---------------- 44,289,459 44,290,812 ------------------ ---------------- COSTS AND OPERATING EXPENSES: Hotel 12,625,972 12,617,680 Food and beverage 7,789,587 7,761,806 Golf 4,606,662 4,680,609 Other 11,914,851 11,573,209 General and administrative 2,829,865 2,894,039 Real Estate Activity 280,227 233,929 ------------------ ---------------- 40,047,164 39,761,272 ------------------ ---------------- OPERATING INCOME (LOSS) 4,242,295 4,529,540 INTEREST, NET 1,490,460 1,554,852 ------------------ ---------------- INCOME (LOSS) BEFORE INCOME TAXES 2,751,835 2,974,688 PARENT INCOME TAX CHARGE (CREDIT) 1,012,000 1,120,700 ------------------ ---------------- NET INCOME (LOSS) BEFORE DIVIDEND REQUIREMENTS ON PREFERRED STOCK 1,739,835 1,853,988 DIVIDEND REQUIREMENTS ON PREFERRED STOCK 192,234 192,412 ------------------ ---------------- NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ 1,547,601 $ 1,661,576 ================== ================ EARNINGS (LOSS) PER COMMON SHARE $ 309.52 $ 332.32 ================== ================
The accompanying notes are an integral part of these statements. These statements were prepared from the books and records of the Company without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 4 5 GOLF HOST RESORTS, INC. STATEMENTS OF SHAREHOLDERS' INVESTMENT FOR THE TWENTY-ONE MONTHS ENDED SEPTEMBER 30, 1996
$1 Par Value 5.6% Cumulative Common Stock Preferred Stock -------------------- -------------------------- Shares Amount Shares Amount ------ --------- --------- ---------- Balance, December 31, 1994 5,000 $ 5,000 4,577,000 $4,577,000 ------ --------- --------- ---------- Net income available to common shareholders - - - - ------ --------- --------- ---------- Balance, December 31, 1995 5,000 5,000 4,577,000 4,577,000 Net income available to common shareholders - - - - ------ --------- --------- --------- Balance, September 30, 1996 5,000 $ 5,000 4,577,000 $4,577,000 ====== ========= ========= ========== Other Shareholders' Investment Total Paid-In Retained Shareholders' Capital Earnings Investment ---------- --------- ------------ Balance, December 31, 1994 $2,329,447 $5,923,381 $12,834,828 ---------- ---------- ----------- Net income available to common shareholders - 1,119,605 1,119,605 ---------- ---------- ----------- Balance, December 31, 1995 2,329,447 7,042,986 13,954,433 Net income available to common shareholders - 1,547,601 1,547,601 ---------- ---------- ----------- Balance, September 30, 1996 $2,329,447 $8,590,587 $15,502,034 ========== ========== ===========
The accompanying notes are an integral part of these statements. These statements were prepared from the books and records of the Company without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 5 6 GOLF HOST RESORTS, INC. STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------------- 1996 1995 ------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income before dividend requirements on preferred stock $ 1,739,835 $ 1,853,988 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 1,870,300 1,842,300 Changes in working capital other than cash (Note 7) (1,303,889) (2,528,350) ------------- ------------- Net cash flows provided by operating activities 2,306,246 1,167,938 ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (1,642,429) (3,019,066) Recovery of cost of property and equipment sold 66,776 3,740 Reduction in notes receivable 592,096 108,131 Additions to notes receivable (7,782) (287,476) ------------- ------------- Net cash flows used in investing activities (991,339) (3,194,671) ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES: Net change in notes payable (672,582) 663,019 Increases in long-term obligations 480,105 1,300,165 Decreases in long-term obligations (1,411,429) (1,868,410) Increase in long-term intercompany 849,508 1,143,884 Increase in long-term contingency 108,157 120,375 ------------- ------------- Net cash flows used in by financing activities (646,241) 1,359,033 ------------- ------------- NET INCREASE (DECREASE) IN CASH 668,666 (667,700) CASH, BEGINNING OF PERIOD 312,603 824,875 ------------- ------------- CASH, END OF PERIOD $ 981,269 $ 157,175 ============= =============
Supplemental information on noncash financing and investing activities is included in Note 7. The accompanying notes are an integral part of these statements. These statements were prepared from the books and records of the Company without audit and, in the opinion of management, include all adjustments which are necessary for a fair presentation. Page 6 7 GOLF HOST RESORTS, INC. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 AND 1995 (1) ORGANIZATION, BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES During the quarter, there was no significant change from the 10-K filing of December 31, 1995. Financial Statement Presentation Certain reclassifications have been made to the December 31, 1994, September 30, 1995 and December 31, 1995 financial statements to conform to the September 30, 1996 presentation. All adjustments to the interim financial statements are of a normal recurring nature. (2) LINES OF CREDIT During the quarter, there was no significant change from the 10-K filing of December 31, 1995 except as follows: Under provisions of the related loan agreements, approximately $3,940,000 was available for immediate use. (3) LONG-TERM OBLIGATIONS Long-term obligations consist of the following:
September 30, December 31, 1996 1995 -------------- -------------- Mortgage notes at varying rates, maturing primarily from 2002 to 2007 $ 17,369,763 $ 18,810,140 Equipment revolving credit line at prime, maturing serially from 1997 to 2000 4,020,292 3,862,987 Other 678,125 346,622 Unamortized debt discount expense (485,755) (506,000) -------------- -------------- 21,582,425 22,513,749 Less-current maturities (2,902,030) (1,854,401) -------------- -------------- $ 18,680,395 $ 20,659,348 ============== ==============
Page 7 8 The remainder of Note 3 has not changed significantly from the 10-K filing of December 31, 1995. (4) LEASES During the quarter, there was no significant change from the 10-K filing of December 31, 1995. (5) ACCRUED EXPENSES Accrued expenses consist of the following:
September 30, December 31, 1996 1995 ------------- ------------- Rental pool lease distribution $ 1,872,659 $ 1,760,259 Salaries 1,066,507 1,400,364 Taxes, other than income taxes 631,575 742,033 Other 578,836 371,429 ------------- ------------- $ 4,149,577 $ 4,274,085 ============= =============
(6) INCOME TAX ALLOCATION AND SHARING POLICY During the quarter, there was no significant change from the 10-K filing of December 31, 1995. (7) SUPPLEMENTAL CASH FLOW DATA The (increases) decreases in working capital other than cash are as follows:
Nine Months Ended September 30, --------------------------------------- 1996 1995 --------------- ---------------- Accounts and notes receivable $ (284,381) $ (693,530) Inventories and supplies (452,934) (55,431) Prepaid expenses and other (66,496) 43,325 Intercompany (343,653) (1,082,940) Accounts payable 279,978 913,683 Accrued expenses (124,508) (745,047) Deposits and prepaid fees (311,895) (908,410) -------------- --------------- $ (1,303,889) $ (2,528,350) ============== ==============
Page 8 9 Noncash Financing Activities: The Company satisfied its preferred stock dividend liability to Golf Hosts, Inc. through the intercompany accounts. $ 192,234 $ 192,412
Page 9 10 GOLF HOST RESORTS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Occupancy for the quarter, measured in room nights, improved 3.5% from the year-ago level. On a divisional basis, the increases were .9% and 8.1% for Innisbrook and Tamarron, respectively. The increases were primarily in the conference segment. Revenues for the quarter were 9.7% ahead of last year. On a per occupied room night basis, revenues increased 6.0%, with Innisbrook experiencing a 4.8% increase while Tamarron experienced a gain of 6.7%. The operating loss for the quarter was 5.1% of total revenues, compared with 8.5% a year earlier. The improvement generally can be attributed to economies of scale that typically accompany higher levels of business. Interest expense, net, reflects a modest improvement, generally attributable to a reduction in the level of debt outstanding and a reduction in the prime rate of interest at which a portion of the Company's debt bears interest. In summary, the $334,083 improvement in income (loss) before income taxes, when compared with the same quarter a year earlier, reflects the increase in revenues of $1,034,964 coupled with an improvement marginal operating income. For the nine months ended September 31, 1996, occupied rooms declined 5.4% from the level of a year earlier. A 5.7% increase in the level of spending per occupied room, with both divisions reporting gains, resulted in total revenues virtually identical to a year ago. Costs and operating expenses were 90.4% of revenues compared with 89.8% for the same period a year earlier. The $222,853 decline in income before income taxes reflects the change in the operating margin percentage partially offset by a reduction in interest expense, net. FINANCIAL CONDITION At September 30, 1996, the Company's net working capital position was $454,519, compared with $403,214 at September 30, 1995, and a deficit $427,141 at December 31, 1995. The Company typically experiences seasonal fluctuations in its net working capital position without impairing its ability to pay its trade creditors in a timely manner and satisfy its financial obligations in an orderly fashion. The Company maintains satisfactory relations with several financial institutions. Liquidity is provided by an accounts receivable and inventory credit line of $6,000,000, of which approximately $3,940,000 was available for immediate use at September 30, 1996, and a revolving mortgage credit facility, which was fully drawn at September 30, 1996, of $2,000,000. Specific financing is in place for most equipment additions. Based on expected operating levels for the balance of the year and the existence of credit facilities with its lenders, the Company assesses its liquidity situation as satisfactory. Page 10 11 PART II - OTHER INFORMATION Item 1. Legal Proceedings Registrant is not currently involved in lawsuits 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 nine months ended September 30, 1996. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27 Financial Data (for SEC use only) (b) Reports on Form 8-K None Page 11 12 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: November 13, 1996 By: /s/ R. S. Ferreira ------------------------- -------------------------- Richard S. Ferreira Executive Vice President Chief Financial Officer Date: November 13, 1996 ------------------------- By: /s/ A. S. Herzog -------------------------- A. Stephen Herzog Vice President and Controller Chief Accounting Officer Page 12 13 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 quarter and nine months ended September 30, 1996. 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, 1995 (File No. 2-64309). Page 13 14 INNISBROOK RENTAL POOL LEASE OPERATION BALANCE SHEETS SEPTEMBER 30, 1996 AND 1995 DISTRIBUTION FUND
1996 1995 ------------- ------------- ASSETS RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION - FULLY SECURED $ 1,160,240 $ 1,176,159 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 19,021 16,870 ------------- ------------- $ 1,179,261 $ 1,193,029 ============= ============= LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION $ 808,871 $ 894,318 DUE TO MAINTENANCE ESCROW FUND 245,640 129,711 RESERVE FOR ESTIMATED LIFE-SAFETY REIMBURSEMENT 124,750 169,000 PARTICIPANTS' FUND BALANCES - - ------------- ------------- $ 1,179,261 $ 1,193,029 ============= ============= MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 1,467,308 $ 1,211,979 INVENTORIES 251 251 RECEIVABLE FROM DISTRIBUTION FUND 245,640 129,711 INTEREST RECEIVABLE 20,216 22,529 ------------- ------------- $ 1,733,415 $ 1,364,470 ============= ============= LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 34,792 $ 100,082 INTEREST PAYABLE TO DISTRIBUTION FUND 19,021 16,870 CARPET CARE RESERVE 38,720 52,534 PARTICIPANTS' FUND BALANCES 1,640,882 1,194,984 ------------- ------------ $ 1,733,415 $ 1,364,470 ============= ============
These balance sheets 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 15 INNISBROOK RENTAL POOL LEASE OPERATION STATEMENTS OF OPERATIONS FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 DISTRIBUTION FUND
Current Quarter Year-to-Date ------------------------------------------ ------------------------------------------ 1996 1995 1996 1995 -------------------- -------------------- -------------------- -------------------- GROSS REVENUES $ 2,090,975 $ 1,903,330 $ 11,710,587 $ 11,670,716 ------------------- ------------------- ------------------- ------------------- REDUCTIONS: Agents' commissions 4,685 7,594 207,955 249,072 Audit fees 3,000 3,100 9,100 8,950 ------------------- ------------------- ------------------- ------------------- 7,685 10,694 217,055 258,022 ------------------- ------------------- ------------------- ------------------- ADJUSTED GROSS REVENUES 2,083,290 1,892,636 11,493,532 11,412,694 MANAGEMENT FEE (979,146) (889,539) (5,401,960) (5,363,966) ------------------- ------------------- ------------------- ------------------- GROSS INCOME DISTRIBUTION 1,104,144 1,003,097 6,091,572 6,048,728 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Corporate complimentary occupany fees 1,451 1,894 6,592 5,104 Occupancy fees (245,641) (259,412) (1,199,597) (1,072,828) Advisory Committee expenses (20,447) (22,504) (66,525) (64,241) Life-safety reimbursement (79,456) (3,000) (124,750) (169,000) ------------------- ------------------- ------------------- ------------------- NET INCOME DISTRIBUTION 760,051 720,075 4,707,292 4,747,763 ADJUSTMENTS TO NET INCOME DISTRIBUTION: Occupancy fees 245,641 259,412 1,199,597 1,072,828 Hospitality suite fees 2,672 - 9,853 2,727 Greens fees 9,186 8,942 66,239 70,018 Additional participation credit 17,940 18,730 54,325 56,995 ------------------- ------------------- ------------------- ------------------- AMOUNT AVAILABLE FOR DISTRIBUTION TO PARTICIPANTS $ 1,035,490 $ 1,007,159 $ 6,037,306 $ 5,950,331 =================== =================== =================== =================== Average daily distribution $ 11.83 $ 11.22 $ 24.47 $ 23.66 Average room rate $ 78.14 $ 71.77 $ 11,140.00 $ 104.98 Room nights 26,761 26,519 105,119 111,171 Occupancy percentage 30.6% 29.5% 42.6% 44.2% Available number of units 87,543 89,797 246,679 251,509 Average number of available units 952 976 900 921
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 16 INNISBROOK RENTAL POOL OPERATION STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 DISTRIBUTION FUND
Current Quarter ------------------------------------------ 1996 1995 -------------------- -------------------- BALANCE, beginning of period $ - $ - ADDITIONS: Amounts available for distribution before life-safety reimbursement 1,114,946 1,010,159 Interest received or receivable from Maintenance Escrow Fund 19,021 16,870 REDUCTIONS: Amount withheld for Maintenance Escrow Fund (245,640) (129,711) Amounts held in reserve for estimated life-safety reimbursement (79,456) (3,000) Amounts accrued or paid to participants (808,871) (894,318) ------------------- ------------------- BALANCE, end of period $ - $ - =================== =================== MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 1,607,083 $ 1,361,622 ADDITIONS: Amounts withheld from occupancy fees 245,640 129,711 Interest earned 19,021 16,870 Charges to participants to establish or restore escrow balances 319,098 343,496 REDUCTIONS: Maintenance charges (493,740) (607,147) Carpet care reserve deposit (6,553) (2,598) Interest accrued or paid to Distribution Fund (19,021) (16,870) Refunds to participants as prescribed by Master Lease Agreement (30,646) (30,100) ------------------- ------------------- BALANCE, end of period $ 1,640,882 $ 1,194,984 =================== =================== Year-to-Date ------------------------------------------ 1996 1995 -------------------- -------------------- BALANCE, beginning of period $ - $ - ADDITIONS: Amounts available for distribution before life-safety reimbursement 6,162,056 6,119,331 Interest received or receivable from Maintenance Escrow Fund 60,152 41,641 REDUCTIONS: Amount withheld for Maintenance Escrow Fund (961,112) (536,428) Amounts held in reserve for estimated life-safety reimbursement (124,750) (166,000) Amounts accrued or paid to participants (5,136,346) (5,458,544) ------------------- ------------------- BALANCE, end of period $ - $ - =================== =================== BALANCE, beginning of period $ 1,141,259 $ 851,207 ADDITIONS: Amounts withheld from occupancy fees 961,112 536,428 Interest earned 60,152 41,641 Charges to participants to establish or restore escrow balances 838,563 1,060,337 REDUCTIONS: Maintenance charges (1,210,085) (1,196,139) Carpet care reserve deposit (25,638) (10,739) Interest accrued or paid to Distribution Fund (60,152) (41,641) Refunds to participants as prescribed by Master Lease Agreement (64,329) (46,110) ------------------- ------------------- BALANCE, end of period $ 1,640,882 $ 1,194,984 =================== ===================
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 17 TAMARRON RENTAL POOL LEASE OPERATION BALANCE SHEETS SEPTEMBER 30, 1996 AND 1995 DISTRIBUTION FUND
1996 1995 ------------ ------------ ASSETS CASH $ 1,000 $ 1,000 RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION 837,169 779,886 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 481 1,424 ------------- ------------- $ 838,650 $ 782,310 ============= ============= LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION $ 751,101 $ 703,711 DUE TO MAINTENANCE ESCROW FUND 87,549 78,599 PARTICIPANTS' FUND BALANCES - - ------------- ------------- $ 838,650 $ 782,310 ============= ============= MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 74,509 $ 128,262 DUE FROM DISTRIBUTION FUND 87,549 78,599 INTEREST RECEIVABLE - 1,277 INVENTORY: Linen 99,871 98,965 Materials and supplies 7,229 10,151 DEPOSITS 86,077 60,209 ------------- ------------- $ 355,235 $ 377,463 ============= ============= LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 5,033 $ 560 INTEREST PAYABLE TO DISTRIBUTION FUND 481 1,424 PARTICIPANTS' FUND BALANCES 349,721 375,479 ------------- ------------- $ 355,235 $ 377,463 ============= =============
These balance sheets 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 18 TAMARRON RENTAL POOL LEASE OPERATION STATEMENTS OF OPERATIONS FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 DISTRIBUTION FUND
Current Quarter Year-to-Date ------------------------------------------ ------------------------------------------ 1996 1995 1996 1995 -------------------- -------------------- -------------------- -------------------- GROSS REVENUES $ 1,887,216 $ 1,762,657 $ 3,142,727 $ 3,236,918 -------------------- -------------------- ------------------- -------------------- REDUCTIONS: Sales and marketing expenses 160,413 158,639 102,880 90,805 Agents' commissions 50,520 42,084 267,131 291,323 Audit fees 2,601 2,709 7,803 7,689 ------------------- ------------------- ------------------- ------------------- 213,534 203,432 377,814 389,817 -------------------- ------------------- ------------------- ------------------- ADJUSTED GROSS REVENUES 1,673,682 1,559,225 2,764,913 2,847,101 MANAGEMENT FEE (836,841) (779,612) (1,382,457) (1,423,550) ------------------- ------------------- ------------------- -------------------- GROSS INCOME DISTRIBUTION 836,841 779,613 1,382,456 1,423,551 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Corporate complimentary occupancy fees 1,989 1,007 3,587 2,471 Occupancy fees (131,790) (123,223) (255,948) (273,076) Designated items (20,653) (15,987) (54,312) (50,965) Advisory Committee expenses (1,661) (733) (7,424) (6,425) ------------------- ------------------- ------------------- ------------------- POOLED INCOME 684,726 640,677 1,068,359 1,095,556 ADJUSTMENTS TO POOLED INCOME: Hospitality suite fees - - 53 105 Occupancy fees 131,790 123,223 255,948 273,076 ------------------- ------------------- ------------------- ------------------- NET INCOME DISTRIBUTION $ 816,516 $ 763,900 $ 1,324,360 $ 1,368,737 =================== =================== =================== =================== Average daily distribution $ 32.01 $ 31.04 $ 17.17 $ 18.27 Average room rate $ 114.85 $ 115.99 $ 98.15 $ 95.79 Room nights 16,432 15,197 32,019 33,791 Occupancy percentage 64.4% 61.8% 41.5% 45.1% Average number of available units 277 267 282 274 Number of units in Rental Pool at end of period 302 291 - -
These statements were prepared from the books and records of the Rental 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 l8 19 TAMARRON RENTAL POOL LEASE OPERATION STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 DISTRIBUTION FUND
Current Quarter ------------------------------------------ 1996 1995 -------------------- -------------------- BALANCE, beginning of period $ - $ - ADDITIONS: Amounts available for distribution 816,516 763,900 Interest received or receivable from Maintenance Escrow Fund 480 1,424 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (65,895) (61,613) Amounts accrued or paid to participants (751,101) (703,711) ------------------- ------------------- BALANCE, end of period $ - $ - =================== =================== MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 336,079 $ 351,513 ADDITIONS: Amounts withheld from occupancy fees 65,895 61,613 Interest earned 480 1,424 Reimbursement of designated items 20,653 15,987 Charges to participants to establish or restore escrow balances 85,132 12,715 REDUCTIONS: Maintenance and inventory charges (30,995) (19,317) Refurbishing charges (98,167) (27,808) Interest accrued or paid to Distribution Fund (480) (1,424) Designated items (20,653) (15,987) Refunds to participants as prescribed by Master Lease Agreement (8,223) (3,237) ------------------- ------------------- BALANCE, end of period $ 349,721 $ 375,479 =================== =================== Year-to-Date ------------------------------------------ 1996 1995 -------------------- -------------------- BALANCE, beginning of period $ - $ - ADDITIONS: Amounts available for distribution 1,324,360 1,368,736 Interest received or receivable from Maintenance Escrow Fund 2,807 4,254 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (127,975) (136,540) Amounts accrued or paid to participants (1,199,192) (1,236,450) ------------------- ------------------- BALANCE, end of period $ - $ - =================== =================== BALANCE, beginning of period $ 328,336 $ 397,655 ADDITIONS: Amounts withheld from occupancy fees 127,975 136,540 Interest earned 2,807 4,254 Reimbursement of designated items 54,312 50,965 Charges to participants to establish or restore escrow balances 227,764 89,781 REDUCTIONS: Maintenance and inventory charges (119,617) (119,974) Refurbishing charges (191,716) (110,586) Interest accrued or paid to Distribution Fund (2,807) (4,254) Designated items (54,313) (50,965) Refunds to participants as prescribed by Master Lease Agreement (23,020) (17,937) ------------------- ------------------- BALANCE, end of period $ 349,721 $ 375,479 =================== ===================
These statements were repared 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 19 EX-27 2 FINANCIAL DATA SCHEDULE (FOR SEC USE ONLY)
5 1 U.S. DOLLARS 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 1 981,269 0 4,918,942 58,681 4,845,432 12,679,518 65,858,158 25,921,785 53,567,062 12,224,999 21,582,425 0 4,577,000 5,000 10,920,034 53,567,062 15,175,646 44,289,459 4,657,045 40,047,164 0 20,587 1,490,460 2,751,835 1,012,000 1,739,835 0 0 0 1,547,601 309.52 309.52
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