-----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, CkrX++2A54gfCftdAPMjIkPdYDA+JfiArSKC6qnc1k5lifEWRQjfN54c1hy4H63n KZVV8wPJDyqOu4aDHhIXHA== 0000950144-98-012587.txt : 19981116 0000950144-98-012587.hdr.sgml : 19981116 ACCESSION NUMBER: 0000950144-98-012587 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 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: SEC FILE NUMBER: 002-64309 FILM NUMBER: 98747347 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, INC. 1 FORM 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, 1998 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) 942-5518 ---------------------------------------------------- (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 2 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) BALANCE SHEETS ASSETS (Substantially all pledged)
SEPTEMBER 30, | DECEMBER 31, 1998 | 1997 ------------- | ------------ (unaudited) | | CURRENT ASSETS: | Cash $ 44,996 | $ 56,090 Restricted cash 1,473,300 | 2,238,767 Accounts receivable, net 4,704,102 | 5,472,228 Inventories and supplies 1,667,588 | 1,899,598 Prepaid expenses and other assets 1,183,426 | 684,497 Intercompany receivables 2,161,297 | 2,857,240 ----------- | ----------- 11,234,709 | 13,208,420 | Assets held for sale 10,138,559 | 9,038,309 ----------- | ----------- | Total current assets 21,373,268 | 22,246,729 | INTANGIBLES, net 31,557,941 | 32,879,352 | PROPERTY AND EQUIPMENT, at cost, less | accumulated depreciation and amortization 40,278,778 | 35,725,251 | OTHER ASSETS 2,165,889 | 1,996,301 ----------- | ----------- | $95,375,876 | $92,847,633 =========== | ===========
The accompanying notes are an integral part of these financial statements. Page 2 3 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' DEFICIT
SEPTEMBER 30, | DECEMBER 31, 1998 | 1997 ------------- | ------------ (unaudited) | | CURRENT LIABILITIES: | Accounts payable $ 9,033,614 | $ 7,854,720 Accrued expenses 5,386,443 | 5,552,488 Deposits and prepaid fees 2,618,200 | 2,907,472 ------------ | ------------ | Total current liabilities 17,038,257 | 16,314,680 ------------ | ------------ | LONG-TERM OBLIGATIONS 82,386,501 | 77,999,163 DEFERRED INCOME TAXES - | 13,134,558 ------------ | ------------ | Total liabilities 99,424,758 | 107,448,401 ------------ | ------------ | 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) Retained (deficit) 4,926,118 | (5,625,768) ------------ | ------------ | Total shareholder's (deficit) (4,048,882) | (14,600,768) ------------ | ------------ | Total liabilities and shareholder's | (deficit) $ 95,375,876 | $ 92,847,633 ============ | ============
The accompanying notes are an integral part of these financial statements. Page 3 4 GOLF HOST RESORTS, INC. STATEMENTS OF INCOME (a wholly owned subsidiary of Golf Hosts, Inc.) (unaudited)
Quarter Ended September 30, || Nine Months | 99 Day 174 Day ---------------------------- || Ended | Period Ended Period Ended || September 30, | September 30, June 23, 1998 1997 || 1998 | 1997 1997 ----------- ----------- || ------------ | ----------- ------------ | || | REVENUES: | || | Resort facilities $ 2,402,941 | $ 1,738,987 || $14,809,288 | $ 2,085,270 $10,775,626 Food and beverage 1,944,683 | 1,421,176 || 11,309,350 | 1,696,866 8,106,385 Golf 1,876,610 | 1,877,970 || 12,115,312 | 2,114,198 9,347,282 Other 1,142,866 | 667,050 || 5,105,779 | 789,783 3,340,715 Real estate activities - | - || - | - 180,000 ----------- | ----------- || ----------- | ----------- ----------- 7,367,100 | 5,705,183 || 43,339,729 | 6,686,117 31,750,008 ----------- | ----------- || ----------- | ----------- ----------- | || | COSTS AND OPERATING EXPENSES: | || | Resort facilities 2,143,596 | 1,949,972 || 10,962,581 | 2,258,224 9,083,194 Food and beverage 1,469,145 | 1,307,088 || 7,554,440 | 1,510,303 5,591,373 Golf 1,537,987 | 1,221,933 || 5,379,059 | 1,334,547 3,247,628 Other 3,478,545 | 2,866,716 || 10,923,568 | 3,214,518 7,672,813 General and administrative 1,422,971 | 828,991 || 3,792,029 | 922,486 2,374,385 Real estate activities - | - || - | - 90,618 ----------- | ----------- || ----------- | ----------- ----------- 10,052,244 | 8,174,700 || 38,611,677 | 9,240,078 28,060,011 ----------- | ----------- || ----------- | ----------- ----------- | || | OPERATING (LOSS) INCOME (2,685,144) | (2,469,517) || 4,728,052 | (2,553,961) 3,689,997 | || | INTEREST, NET 2,309,290 | 2,055,237 || 7,028,357 | 2,215,237 945,481 ----------- | ----------- || ----------- | ----------- ----------- | || | (LOSS) INCOME BEFORE INCOME TAXES (4,994,434) | (4,524,754) || (2,300,305) | (4,769,198) 2,744,516 | || | PARENT INCOME TAX CHARGE (BENEFIT) - | (1,743,614) || 381,614 | (1,835,281) 967,800 ----------- | ----------- || ----------- | ----------- ------------ | || | (LOSS) INCOME BEFORE EXTRAORDINARY | || | ITEMS (4,994,434) | (2,781,140) || (2,681,919) | (2,933,917) 1,776,716 | || | GAIN FROM CHANGE IN TAX STATUS - | - || 13,426,039 | - - | || | LOSS ON EARLY EXTINGUISHMENT OF | || | LONG TERM DEBT (NET OF TAXES | || | OF $155,400) - | - || - | - (288,600) ----------- | ----------- || ----------- | ----------- ------------ | || | NET (LOSS) INCOME (4,994,434) | (2,781,140) || 10,744,120 | (2,933,917) 1,488,116 | || | DIVIDEND REQUIREMENTS ON | || | PREFERRED STOCK 64,078 | 64,078 || 192,234 | 69,007 123,227 ----------- | ----------- || ----------- | ----------- ------------ | || | NET CHANGE IN EARNINGS (DEFICIT) $(5,058,512) | $(2,845,218) || $10,551,886 | $(3,002,924) $ 1,364,889 =========== =========== || =========== | =========== ============ | || | (LOSS) EARNINGS PER COMMON SHARE $ (1,011.70) | $ (569.04) || $ 2,110.38 | $ (600.58) $ 272.98 =========== | =========== || =========== | =========== ============
The accompanying notes are an integral part of these financial statements. Page 4 5 GOLF HOST RESORTS, INC. STATEMENTS OF SHAREHOLDERS' EQUITY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) (UNAUDITED)
$1 Par Value 5.6% Cumulative Common Stock Preferred Stock Retained Total ---------------- ----------------------- Paid-In (Deficit) Shareholder's Shares Amount Shares Amount Capital Earnings (Deficit) Equity ------ ------ -------- -------- ------- --------- ---------------- Balance, December 31, 1996 5,000 $5,000 4,577,000 $ 4,577,000 $ 2,329,447 $ 8,157,197 $ 15,068,644 Notes receivable distribution - - - - - (3,941,666) (3,941,666) Net change in earnings - - - - - 1,364,889 1,364,889 ----- ------ --------- ----------- ------------ ----------- ------------ Balance, June 23, 1997 5,000 $5,000 4,577,000 $ 4,577,000 $ 2,329,447 $ 5,580,420 $ 12,491,867 ===== ====== ========= =========== ============ =========== ============ - ----------------------------------------------------------------------------------------------------------------------------- Balance, June 24, 1997 5,000 $5,000 4,577,000 $ 4,577,000 $ (4,582,000) $ - $ - Distribution to shareholder - - - - (8,975,000) - (8,975,000) Net change in deficit - - - - - (5,625,768) (5,625,768) ----- ------ --------- ----------- ------------ ----------- ------------ Balance, December 31, 1997 5,000 5,000 4,577,000 4,577,000 (13,557,000) $(5,625,768) $(14,600,768) Net change in earnings - - - - - 10,551,886 10,551,886 ----- ------ --------- ----------- ------------ ----------- ------------ Balance, September 30, 1998 5,000 $5,000 4,577,000 $ 4,577,000 $(13,557,000) $ 4,926,118 $ (4,048,882) ===== ====== ========= =========== ============ =========== ============
Page 5 6 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) STATEMENTS OF CASH FLOWS
Nine months 99 day | 174 day ended period ended | period ended September 30, 1998 September 30, 1997 | June 23, 1997 ------------------ ------------------ |------------------ | CASH FLOWS FROM OPERATING ACTIVITIES: | Net (loss) income $ 10,744,118 $(2,933,917) | $ 1,488,116 Noncash items included in income: | Provision for bad debts - - | 89,609 Depreciation and amortization 3,003,035 852,993 | 1,282,510 Decrease in deferred tax (13,134,558) (1,660,807) | - Changes in operating working capital 2,493,962 2,039,253 | (2,059,667) ------------ ----------- | ----------- Cash provided by operations 3,106,557 (1,702,478) | 800,568 ------------ ----------- | ----------- CASH FLOWS FROM INVESTING ACTIVITIES: | Decreases (increases) in other assets (356,231) 6,932 | 62,302 Purchases of property and equipment (6,037,586) (1,732,812) | (1,517,431) Decrease (increase) in assets held for sale (1,100,250) 299,754 | - Net recovery of cost of property and | equipment sold or retired (10,921) - | - Additions to notes receivable - - | - Reductions in notes receivable - - | 1,185,120 ------------ ----------- | ----------- Cash provided by (used for) investing (7,504,988) (1,426,126) | (270,009) | CASH FLOWS FROM FINANCING ACTIVITIES: | Net change in notes payable - - | - Increases in long-term obligations - - | - Decreases in long-term obligations (355,987) - | - Increases in long-term intercompany - - | - Increases in long-term contingency - - | - Additional borrowings 4,743,324 1,073,748 | 1,514,587 Proceeds from sale of company - - | 63,524,946 Repayment of existing debt - - | (25,037,262) Proceeds to selling shareholders - - | (38,046,827) ------------ ----------- | ----------- Cash provided (used) for financing 4,387,337 1,073,748 | 1,955,444 ------------ ----------- | ----------- NET (DECREASE) INCREASE IN CASH (11,094) (2,054,856) | 2,486,003 CASH, BEGINNING OF PERIOD 56,090 2,974,688 | 488,685 ------------ ----------- | ----------- CASH, END OF PERIOD $ 44,996 $ 919,832 | $ 2,974,688 ============ =========== | =========== | NONCASH FINANCING AND INVESTING ACTIVITIES: | | Preferred stock dividend liability of Golf Hosts, Inc. | satisfied through the intercompany account $ 192,234 $ 69,007 | $ 123,227 | The Company transferred its investment in | GTA to GHI $ - $ 8,975,000 | $ - | OTHER INFORMATION | | Interest paid in cash $ 2,048,798 $ 1,118,595 | $ 965,117 | Income taxes paid in cash $ - $ - | $ 118,090
The accompanying notes are an integral part of these financial statements. Page 6 7 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1998 AND 1997 (1) ORGANIZATION, BUSINESS, LIQUIDITY AND ACCOUNTING POLICIES During the quarter, there was no significant change from the 10-K filing on December 31, 1997. Financial Statement Presentation Certain reclassifications have been made to the September 1997 financial statements to conform to the December 1997 presentation. (2) LONG-TERM OBLIGATIONS Long-term obligations consist of the following:
SEPTEMBER 30, DECEMBER 31, 1998 1997 ------------- ------------ Participating mortgage note at varying pay rates maturing in 2027 $69,725,000 $69,975,000 $9,000,000 participating mortgage note credit facility 7,767,487 3,024,163 Mortgage note at 6.34%, maturing in 2002 4,894,014 5,000,000 ----------- ----------- $82,386,501 $77,999,163 =========== ===========
(3) INCOME TAXES On April 17, 1998, the Company filed an election with the Internal Revenue Service to change its tax status to a qualified subchapter S subsidiary effective February 3, 1998. As a result of this election all deferred tax liability has been removed from the balance sheet and reflected as an extraordinary item in the statements of income. Page 7 8 GOLF HOST RESORTS, INC. (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 1998 and 1997, the results of operations of Tamarron, which are included in Assets Held for Sale, are also utilized. Guest occupancy for the quarter, measured in room nights, increased 8.7% from the level of the prior year. On a divisional basis, Innisbrook's occupancy rose 15.9% while Tamarron experienced a decline in occupancy of 1.8%. The largest increase in Innisbrook's occupancy occurred in conference room nights, although golf groups and social room nights posted significant improvements as well. Revenues from resort operations on a per occupied room basis increased 7.3%, from $289.05 to $310.21. The improved guest spending is primarily attributable to Innisbrook, which enjoyed a 29.1% increase in gross operating revenue while Tamarron's gross operating revenue declined .6%. In addition to higher occupancy levels, Innisbrook's average room rate improved 19.2%, while food and beverage revenue posted a 36.8% improvement despite a 6.1% decline in meals served as the revenue per meal increased 47.9%, primarily due to two restaurants being re-themed. Innisbrook golf revenues approximated the prior year as revenue per player rose 4.5% while rounds played declined 4.4%. On a divisional basis, Innisbrook and Tamarron's revenue per occupied room for the third quarter of 1998 and 1997 were $315.15 and $301.76 as compared to $282.86 and $298.08, respectively. As a result of the improved occupancy and guest spending, total resort operations revenues rose $1.6 million, or 16.6%. Real estate activities did not generate revenue in the third quarter of either year. Four of the nine Pine Ridge homesites remain unsold; two Pine Ridge homesites were closed in October 1998. Relative to total resort operations revenues, costs and operating expenses approximated the prior year on a percentage basis. At Innisbrook, gross operating income grew 45.1% as relative departmental operating expense levels rose 21.0% over the prior year while revenues increased at a 29.1% rate. At the same time, Innisbrook's fixed charges and other expenses increased 13.3% over the prior year, primarily due to marketing costs increasing 66.1% and management fees increasing 29.5% while insurance costs declined 56.3%. While Tamarron's gross operating revenue remained flat, its cost and operating expenses grew slightly to 48.6% of revenues as compared to 46.4% the prior year. Tamarron's fixed charges and other expenses declined 2.7% from the prior year's level, with a 157.7% increase in management fees being offset by a 118.4% decrease in maintenance expense. Effective September 1, 1998, the Tamarron management agreement with Hilton Hotels Corporation was terminated. Sheraton Operating Corporation now manages Tamarron, which is doing business as The Sheraton Tamarron Resort. FINANCIAL CONDITION AND LIQUIDITY The Company's working capital position (exclusive of Assets Held for Sale) was a deficit of $5,804,000 as compared to a deficit of $3,106,000 at December 31, 1997. 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. Relative to these seasonal fluctuations, the Company has entered into an unsecured capital expenditure sharing agreement with Westin whereby Westin will fund 50% of capital expenditures incurred subsequent to the June 23, 1997 merger transaction in excess of $6,000,000, plus capital reserve requirements as defined. In addition, the Company has obtained a $5,000,000 accounts receivable line of credit from a major financial institution, with initial draws on the line occurring in October 1998. Based on existing cash levels and the additional cash sources discussed above, the Company assesses its liquidity as satisfactory. Page 8 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 the 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, 1998. 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 9 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: November 13, 1998 By: /s/ Merrick Kleeman ------------------------------ ---------------------------------- Merrick Kleeman President Date: November 13, 1998 By: /s/ Richard L. Akin ------------------------------ ---------------------------------- Richard L. Akin Vice President and Treasurer Page 10 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 quarter and nine months ended September 30, 1998 and 1997. 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, 1997 (file No. 2-64309). Page 11 12 INNISBROOK RENTAL POOL LEASE OPERATION BALANCE SHEETS SEPTEMBER 30, 1998 AND 1997 DISTRIBUTION FUND
1998 1997 -------- ---------- ASSETS RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION - FULLY SECURED $ 903,483 $1,140,133 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 24,030 30,326 ---------- ---------- $ 927,513 $1,170,459 ========== ========== LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION $ 670,103 $ 778,608 DUE TO MAINTENANCE ESCROW FUND 257,410 191,096 RESERVE FOR ESTIMATED LIFE-SAFETY REIMBURSEMENT - 200,755 PARTICIPANTS' FUND BALANCES - - ---------- ---------- $ 927,513 $1,170,459 ========== ==========
MAINTENANCE ESCROW FUND
ASSETS CASH AND CASH EQUIVALENTS $2,042,626 $1,888,704 INVENTORIES - - RECEIVABLE FROM DISTRIBUTION FUND 257,410 191,096 INTEREST RECEIVABLE 19,285 33,383 ---------- ---------- $2,319,321 $2,113,183 ========== ========== LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 5,844 $ 40,453 INTEREST PAYABLE TO DISTRIBUTION FUND 24,030 30,326 CARPET CARE RESERVE 9,994 31,651 PARTICIPANTS' FUND BALANCES 2,279,453 2,010,753 ---------- ---------- $2,319,321 $2,113,183 ========== ==========
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 12 13 INNISBROOK RENTAL POOL OPERATION STATEMENTS OF OPERATIONS FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997 DISTRIBUTION FUND
Current Quarter Year-to-Date ------------------------- -------------------------- 1998 1997 1998 1997 ---- ---- ---- ---- GROSS REVENUES $ 2,230,251 $1,734,022 $14,623,754 $11,377,240 ----------- ---------- ----------- ----------- REDUCTIONS: Agents' commissions 37,919 31,266 497,738 188,342 Credit card fees 21,328 - 141,185 - Audit fees 3,250 3,000 9,749 9,100 ----------- ---------- ----------- ----------- 62,497 34,266 648,672 197,442 ADJUSTED GROSS REVENUES 2,167,754 1,699,756 13,975,082 11,179,798 MANAGEMENT FEE (1,079,003) (798,885) (6,959,166) (5,254,504) ----------- ---------- ----------- ----------- GROSS INCOME DISTRIBUTION 1,088,751 900,871 7,015,916 5,925,294 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Management fees (113,559) - (750,424) - Marketing fee (61,942) - (409,322) - Miscellaneous pooled expense (20,274) - (58,283) - Corporate complimentary occupancy fees 9,601 5,202 26,154 13,696 Westin Associate room fees 4,370 - 12,330 - Occupancy fees (289,988) (254,792) (1,342,759) (1,175,044) Advisory Committee expenses (6,115) (25,230) (22,523) (79,543) Life-safety reimbursement - 28,807 - (200,755) ----------- ---------- ----------- ----------- NET INCOME DISTRIBUTION 610,844 654,858 4,471,089 4,483,648 ADJUSTMENTS TO NET INCOME DISTRIBUTION: Occupancy fees 289,988 254,792 1,342,759 1,175,044 Hospitality suite fees - 2,217 134 7,298 Greens fees 1,331 10,276 10,090 66,956 Additional participation credits 1,320 17,235 3,960 52,555 --------- ---------- ----------- ----------- AMOUNT AVAILABLE FOR DISTRIBUTION TO PARTICIPANTS $ 903,483 $ 939,378 $ 5,828,032 $ 5,785,501 ========= ========== =========== =========== Average daily distribution $ 10.95 $ 10.94 $ 24.92 $ 23.91 Average room rate $ 95.35 $ 85.91 $ 133.56 $ 118.74 Occupied room nights 23,389 20,185 109,496 95,818 Available room nights 82,492 85,904 233,900 241,952 Occupancy percentage 28.4% 23.5% 46.8% 39.6% Average number of available units 897 934 857 886
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 14 INNISBROOK RENTAL POOL OPERATION STATEMENT OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997 DISTRIBUTION FUND
Current Quarter Year-to-Date --------------------------- ---------------------------- 1998 1997 1998 1997 ---- ---- ---- ---- BALANCE, beginning of period $ - $ - $ - $ - ADDITIONS: Amounts available for distribution before life-safety reimbursement 903,483 910,571 5,828,032 5,986,256 Interest received or receivable from Maintenance Escrow Fund 24,030 30,326 67,133 81,910 REDUCTIONS: Amount withheld for Maintenance Escrow Fund (257,410) (191,096) 1,194,555) (881,290) Amounts held in reserve for estimated life-safety reimbursement - 28,807 - (200,755) Amounts accrued or paid to participants (670,103) (778,608) (4,700,610) (4,986,121) ---------- ----------- ----------- ----------- BALANCE, end of period $ - $ - $ - $ - ========== =========== =========== ===========
MAINTENANCE ESCROW FUND BALANCE, beginning of period $2,252,555 $ 2,417,925 $ 1,901,616 $ 1,734,415 ADDITIONS: Amounts withheld from occupancy fees 257,410 191,096 1,194,555 881,290 Interest earned 24,030 30,326 67,133 81,910 Charges to participants to establish or restore escrow balances 34,104 164,492 161,883 994,837 REDUCTIONS: Maintenance charges (184,490) (722,489) (761,552) (1,498,557) Carpet care reserve deposit (5,800) (5,098) (26,855) (28,092) Interest accrued or paid to Distribution Fund (24,030) (30,326) (67,133) (81,910) Refunds to participants as prescribed by Master Lease Agreement (74,326) (35,173) (190,194) (73,140) ---------- ----------- ----------- ----------- BALANCE, end of period $2,279,453 $ 2,010,753 $ 2,279,453 $ 2,010,753 ========== =========== =========== ===========
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 15 TAMARRON RENTAL POOL LEASE OPERATION BALANCE SHEETS SEPTEMBER 30, 1998 AND 1997 DISTRIBUTION FUND
1998 1997 ---- ---- ASSETS CASH $ 1,000 $ 1,000 RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION 754,275 771,434 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 212 203 -------- -------- $755,487 $772,637 ======== ======== LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION $666,442 $666,146 DUE TO MAINTENANCE ESCROW FUND 89,045 106,491 PARTICIPANTS' FUND BALANCES - - -------- -------- $755,487 $772,637 ======== ======== MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 26,176 $ 21,598 DUE FROM DISTRIBUTION FUND 89,045 106,491 INTEREST RECEIVABLE - - INVENTORY: Linen 56,313 89,480 Materials and supplies 12,281 13,643 DEPOSITS - - -------- -------- $183,815 $231,212 ======== ======== LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 5,139 $ 4,150 INTEREST PAYABLE TO DISTRIBUTION FUND 212 203 PARTICIPANTS' FUND BALANCES 178,464 226,859 -------- -------- $183,815 $231,212 ======== ========
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 15 16 TAMARRON RENTAL POOL LEASE OPERATION STATEMENT OF OPERATIONS FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
DISTRIBUTION FUND Current Quarter Year-to-Date ------------------------ -------------------------- 1998 1997 1998 1997 ----------- ----------- ----------- ----------- GROSS REVENUES $1,671,867 $1,711,566 $ 2,791,077 $ 2,992,542 ---------- ---------- ----------- ----------- REDUCTIONS: Sales and marketing expenses 125,390 136,925 209,331 239,405 Agents' commissions 33,540 27,916 92,845 98,381 Audit fees 3,714 2,595 9,287 7,795 ---------- ---------- ----------- ----------- 162,644 167,436 311,463 345,581 ---------- ---------- ----------- ----------- ADJUSTED GROSS REVENUES 1,509,223 1,544,130 2,479,614 2,646,961 MANAGEMENT FEE (754,611) (772,065) (1,239,807) (1,323,480) ---------- ---------- ----------- ----------- GROSS INCOME DISTRIBUTION 754,612 772,065 1,239,807 1,323,481 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Corporate complimentary occupancy fees 1,191 1,466 1,926 2,952 Occupancy fees (137,427) (140,935) (267,075) (302,638) Designated items (19,329) (35,022) (51,207) (88,954) Advisory Committee expenses (1,527) (2,097) (7,468) (9,816) ---------- ---------- ----------- ----------- POOLED INCOME 597,520 595,477 915,983 925,025 ADJUSTMENTS TO POOLED INCOME: Hospitality suite fees - - - - Occupancy fees 137,427 140,935 267,075 302,638 ---------- ---------- ----------- ----------- NET INCOME DISTRIBUTION $ 734,947 $ 736,412 $ 1,183,058 $ 1,227,663 ========== ========== =========== =========== Average daily distribution $ 29.97 $ 29.36 $ 15.44 $ 15.84 Average room rate $ 122.53 $ 123.03 $ 105.57 $ 99.45 Occupied room nights 13,644 13,912 26,439 30,092 Available room nights 24,525 25,070 76,635 77,505 Occupancy percentage 55.6% 55.5% 34.5% 38.8% Average number of available units 267 273 283 284 Number of units in Rental Pool at end of period 288 293 - -
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 STATEMENT OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
DISTRIBUTION FUND Current Quarter Year-to-Date ------------------------ ---------------------------- 1998 1997 1998 1997 --------- --------- ----------- ----------- BALANCE, beginning of period $ - $ - $ - $ - ADDITIONS: Amounts available for distribution 734,947 736,412 1,183,059 1,227,663 Interest received or receivable from Maintenance Escrow Fund 212 204 990 589 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (68,716) (70,470) (133,544) (151,325) Amounts accrued or paid to participants (666,443) (666,146) (1,050,505) (1,076,927) --------- --------- ----------- ----------- BALANCE, end of period $ - $ - $ - $ - ========= ========= =========== =========== MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 123,214 $ 206,837 $ 165,522 $ 197,548 ADDITIONS: Amounts withheld from occupancy fees 68,716 70,470 133,544 151,325 Interest earned 212 204 990 589 Reimbursement of designated items 19,329 35,022 51,207 88,954 Charges to participants to establish or restore escrow balances 147,266 7,564 348,960 23,859 REDUCTIONS: Maintenance and inventory charges (97,891) (40,840) (278,375) (93,068) Refurbishing charges (57,664) (14,206) (178,252) (38,875) Interest accrued or paid to Distribution Fund (212) (204) (990) (589) Designated items (19,329) (35,022) (51,207) (88,953) Refunds to participants as prescribed by Master Lease Agreement (5,177) (2,966) (12,935) (13,931) --------- --------- ----------- ----------- BALANCE, end of period $ 178,464 $ 226,859 $ 178,464 $ 226,859 ========= ========= =========== ===========
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 EX-27 2 FINANCIAL DATA SCHEDULE
5 0000042429 GOLF HOST RESORTS, INC. 1 US DOLLARS 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 1 1,518,296 0 4,471,132 (50,678) 1,667,588 21,373,268 65,971,991 (23,293,212) 95,375,876 17,038,257 82,386,501 0 4,577,000 5,000 (8,630,882) 95,375,876 14,034,083 43,339,729 4,241,926 38,611,677 0 69,100 7,028,357 (2,300,305) 381,614 (2,681,919) 0 13,426,039 0 10,744,120 2,110.38 2,110.38
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