-----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, OuigD/C5+CQFYzNJBNMMxqEQsUsIW+rgLNYzvF9ri3KDzHKsVRVvGJVmMpJBpWwK aJSFNffBom4Bi/ila8qVqw== 0000950144-99-010574.txt : 19990823 0000950144-99-010574.hdr.sgml : 19990823 ACCESSION NUMBER: 0000950144-99-010574 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990820 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: 99696508 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 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------------------- For Quarter Ended June 30, 1999 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) (970) 259-2000 - -------------------------------------------------------------------------------- (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 17 2 GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) BALANCE SHEETS JUNE 30, 1999 AND DECEMBER 31, 1998 ASSETS (Substantially all pledged)
June 30, December 31, 1999 1998 ----------- ----------- (unaudited) CURRENT ASSETS: Cash $ 1,011,057 $ 1,396,404 Restricted cash 1,413,856 705,297 Accounts receivable, net 10,958,579 7,545,177 Notes receivable 1,349,823 1,349,823 Inventories and supplies 1,600,906 2,057,450 Prepaid expenses and other assets 857,353 1,061,668 ----------- ----------- 17,191,574 14,115,819 Assets held for sale 10,078,564 12,684,302 ----------- ----------- Total current assets 27,270,138 26,800,121 INTANGIBLES, net 27,740,468 28,547,188 PROPERTY AND EQUIPMENT, at cost, less accumulated depreciation and amortization 42,380,792 41,585,829 OTHER ASSETS 268,185 1,874,723 ----------- ----------- $97,659,583 $98,807,861 =========== ===========
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 JUNE 30, 1999 AND DECEMBER 31, 1998 LIABILITIES AND SHAREHOLDER'S (DEFICIT)
June 30, December 31, 1999 1998 ------------- ------------- (unaudited) CURRENT LIABILITIES: Account receivable line of credit $ 319,270 $ 3,832,443 Accounts payable 3,692,634 3,110,889 Accrued expenses 6,235,910 5,241,267 Deposits and prepaid fees 2,344,432 3,657,913 Intercompany payable 440,573 459,520 ------------- ------------- Total current liabilities 13,032,819 16,302,032 NOTES PAYABLE 83,523,707 83,416,053 OTHER LONG-TERM LIABILITIES 4,311,964 4,353,543 DEFERRED INCOME TAXES 1,770,467 1,770,467 ------------- ------------- Total liabilities 102,638,957 105,842,095 ------------- ------------- 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 earnings 3,995,626 1,940,766 ------------- ------------- Total shareholder's (deficit) (4,979,374) (7,034,234) ------------- ------------- Total liabilities and shareholder's (deficit) $ 97,659,583 $ 98,807,861 ============= =============
The accompanying notes are an integral part of these financial statements. Page 3 4 GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) STATEMENTS OF INCOME FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998
Quarters ended June 30, Six Months ended June 30, --------------------------------- ------------------------------ 1999 1998 1999 1998 ------------ ------------ ----------- ----------- REVENUES: Resort facilities $ 5,270,491 $ 4,586,871 $14,416,988 $12,406,347 Food and beverage 4,781,104 4,358,864 9,923,457 9,364,667 Golf 3,942,125 4,090,597 10,086,757 10,238,702 Other 2,122,650 1,958,387 4,376,854 3,962,913 ------------ ------------ ----------- ----------- 16,116,370 14,994,719 38,804,056 35,972,629 ------------ ------------ ----------- ----------- COST AND OPERATION EXPENSES: Resort facilities 3,738,206 3,502,391 9,171,465 8,818,985 Food and beverage 3,168,090 2,854,922 6,125,043 6,085,295 Golf 1,913,019 1,862,878 3,997,407 3,841,072 Other 5,189,768 3,549,683 10,002,858 7,445,023 General and administrative 18,115 1,252,384 3,359,612 2,369,060 ------------ ------------ ----------- ----------- 14,027,198 13,022,258 32,656,385 28,559,435 GAIN (LOSS) ON ASSETS HELD FOR SALE (27,027) -- 794,837 -- ------------ ------------ ----------- ----------- OPERATING INCOME 2,062,145 1,972,461 6,942,508 7,413,194 INTEREST, NET 2,373,556 2,478,750 4,759,494 4,719,067 ------------ ------------ ----------- ----------- INCOME (LOSS) BEFORE INCOME TAX (311,411) (506,289) 2,183,014 2,694,127 PARENT INCOME TAX CHARGE (CREDIT) -- (818,543) -- 381,614 GAIN FROM CHANGE IN TAX STATUS -- 13,426,039 -- 13,426,039 ------------ ------------ ----------- ----------- INCOME (LOSS) BEFORE DIVIDEND REQUIREMENTS ON PREFERRED STOCK (311,411) 13,738,293 2,183,014 15,738,552 DIVIDEND REQUIREMENTS ON PREFERRED STOCK 64,077 64,078 128,154 128,156 ------------ ------------ ----------- ----------- NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ (375,488) $ 13,674,215 $ 2,054,860 $15,610,396 ============ ============ =========== =========== EARNINGS (LOSS) PER COMMON SHARE $ (75.10) $ 2,734.84 $ 410.97 $ 3,122.08 ============ ============ =========== ===========
The accompanying notes are an integral part of these financial statements. Page 4 5 GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) CONSOLIDATED STATEMENTS OF SHAREHOLDER'S (DEFICIT) EQUITY FOR THE EIGHTEEN MONTHS ENDED JUNE 30, 1999
$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, 1997 5,000 $5,000 4,577,000 $4,577,000 $(13,557,000) $(5,625,768) $(14,600,768) Net income available to common shareholder -- -- -- -- -- 7,566,534 7,566,534 ----- ------ --------- ---------- ------------ ----------- ------------ Balance, December 31, 1998 5,000 5,000 4,577,000 4,577,000 (13,557,000) 1,940,766 (7,034,234) Net income available to common shareholder -- -- -- -- -- 2,054,860 2,054,860 ----- ------ --------- ---------- ------------ ----------- ------------ Balance, June 30, 1999 5,000 $5,000 4,577,000 $4,577,000 $(13,557,000) $ 3,995,626 $ (4,979,374) ===== ====== ========= ========== ============ =========== ============
The accompanying notes are an integral part of these financial statements. Page 5 6 GOLF HOST RESORTS, INC. AND SUBSIDIARY (a wholly owned subsidiary of Golf Hosts, Inc.) STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
1999 1998 ----------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income before dividend requirements on preferred stock $ 2,183,014 $ 15,738,552 Noncash items included in income: Depreciation and amortization 1,898,720 1,431,639 Write-off of startup costs 1,606,538 -- Gain from change in tax status -- (13,426,039) Increase in deferred tax -- 291,481 Changes in operating working capital (3,345,281) (1,441,673) ----------- ------------ Cash provided by operations 2,342,991 2,593,960 ----------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: (Decreases) increases in other assets -- (177,683) Purchases of property and equipment (1,894,207) (3,416,166) Net recovery of cost of property and equipment sold or retired 7,229 (12,219) (Increase) decrease in assets held for sale 2,605,738 (1,702,538) ----------- ------------ Cash provided by (used in) investing activities 718,760 (5,308,606) ----------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Decreases in notes payable (195,762) (355,987) Additional borrowings 303,416 3,068,990 Repayment of line of credit (3,513,173) -- Decreases in other long-term liabilities (41,579) -- ----------- ------------ Cash provided by (used for) financing activities (3,447,098) 2,713,003 ----------- ------------ NET INCREASE (DECREASE) IN CASH (385,347) (1,643) CASH, BEGINNING OF PERIOD 1,396,404 56,090 ----------- ------------ CASH, END OF PERIOD $ 1,011,057 $ 54,447 =========== ============ NONCASH FINANCING AND INVESTING ACTIVITIES: The Company satisfied its preferred stock dividend liability to GHI through the intercompany account $ 128,154 $ 128,156
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 JUNE 30, 1999 and 1998 (1) ORGANIZATION, BUSINESS, LIQUIDITY AND ACCOUNTING POLICIES During the quarter, there was no significant change from the 10-K filing on December 31, 1998 Financial Statement Presentation Certain reclassifications have been made to the June 1998 financial statements to conform to the December 1998 presentation. (2) LONG-TERM OBLIGATIONS Long-term obligations consist of the following:
June 30, December 31, 1999 1998 ----------- ----------- 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 8,696,584 Mortgage note at 6.34%, maturing in 2002 4,460,312 4,645,264 Capital lease at 9.51% 109,340 119,181 ----------- ----------- 83,544,652 83,436,029 Less current maturities 20,945 19,976 ----------- ----------- $83,523,707 $83,416,053 =========== ===========
Page 7 8 GOLF HOST RESORTS, 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 1999 and 1998, the results of operations of Tamarron, which are included in gain (loss) on assets held for sale in 1999 and in assets held for sale in 1998, are also utilized. Guest occupancy for the quarter, measured in room nights, increased 5.4% from the level of the prior year. On a divisional basis, Innisbrook's occupancy rose 4.9% while Tamarron experienced an increase in occupancy of 8.5%. The modest increase in Innisbrook's room nights occurred primarily in the group segment. The increase in Tamarron's occupancy occurred in the group segment, while the social segment occupancy declined slightly. Revenues from resort operations on a per occupied room basis increased 2.9%, from $387.05 to $398.12. The improved guest spending is primarily attributable to Tamarron, which enjoyed a 16.4% increase in gross operating revenue. While Innisbrook's gross operating revenue rose 7.5%, its revenue per room night rose 2.4%. Innisbrook's average daily room rate rose 9.5% while Tamarron's increased 12.3% While meals served at Innisbrook declined .8%, revenue per meal served improved 10.6%. Tamarron's meals served rose 9.5% while its revenue per meal served increased 1.7%. The improved revenues per meal served at both resorts reflects the benefits of rethemed restaurants which were more attractive to guests. Innisbrook golf revenues were down 3.6% from the prior year, as revenue per player declined 5.0%. Rounds played increased 1.4%. Tamarron's golf revenues were down 8.4% while rounds played decreased by 6.3%. On a divisional basis, Innisbrook and Tamarron's revenue per occupied room for the second quarter of 1999 and 1998 were $412.28 and $316.78 as compared to $402.46 and $295.49, respectively. As a result of the improved occupancy and guest spending, total resort operations revenues rose $1.4 million, or 8.4%. Real estate activities at Tamarron generated two lot sales during the second quarter of 1999 and none during 1998. There are no remaining Pine Ridge homesites to be sold. All of the real estate sales activity for 1999 and 1998 is included in gain (loss) on assets held for sale in the statements of income. Costs and operating expenses increased to 87.0% of total resort operations revenues as compared to 86.8% in 1998. At Innisbrook, gross operating income increased 16.8% as relative departmental operating expense levels rose moderately by 3.4% over the prior year while revenues increased at a 7.4% rate. At the same time, Innisbrook's fixed charges and other expenses increased 21.3% over the prior year, primarily due to increased rental pool distribution expense and amortization of intangible assets. While Tamarron's gross operating revenue increased as noted above, its cost and operating expenses experienced a 1.2% decrease. Tamarron's fixed charges and other expenses increased 6.9%. Interest expense declined 4.2%, primarily as a result of payments under a participating mortgage in 1998 which did not reoccur in 1999. The gain from change in tax status of $13.4 million resulted from the conversion to a subchapter S subsidiary effective February 3, 1998. Financial Condition and Liquidity The Company's working capital position (exclusive of Assets Held for Sale) was $4,159,000 at June 30, 1999 as compared to a deficit of $2,186,000 at December 31, 1998. 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. 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 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 six months ended June 30, 1999 and 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: August 20, 1999 By: /s/ Merrick Kleeman ------------------ ----------------------------------- Merrick Kleeman President Date: August 20, 1999 By: /s/ R. Keith Wilt ------------------ ----------------------------------- R. Keith Wilt 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 quarters and six months ended June 30, 1999 and 1998. 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, 1998 (file No. 2-64309). Page 11 12 INNISBROOK RENTAL POOL LEASE OPERATION BALANCE SHEETS JUNE 30, 1999 AND 1998 DISTRIBUTION FUND
1999 1998 ----------- ---------- ASSETS RECEIVABLE FROM GOLF HOST RESORTS, INC FOR DISTRIBUTION $ 1,984,193 $1,843,159 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 27,480 22,127 ----------- ---------- $ 2,011,673 $1,865,286 =========== ========== LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION 1,577,250 1,447,419 DUE TO MAINTENANCE ESCROW FUND 434,423 417,867 PARTICIPANTS' FUND BALANCES -- -- ----------- ---------- $ 2,011,673 $1,865,286 =========== ========== MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 2,613,918 $1,862,745 RECEIVABLE FROM DISTRIBUTION FUND 434,423 417,867 INVENTORY 80,382 -- INTEREST RECEIVABLE 42,486 31,295 ----------- ---------- $ 3,171,209 $2,311,907 =========== ========== LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 1,990 $ 17,716 INTEREST PAYABLE TO DISTRIBUTION FUND 27,480 22,127 CARPET CARE RESERVE (2,968) 19,509 PARTICIPANTS' FUND BALANCES 3,144,707 2,262,555 ----------- ---------- $ 3,171,209 $2,311,907 =========== ==========
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 LEASE OPERATION STATEMENTS OF OPERATIONS FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998 DISTRIBUTION FUND
Current Quarter Year-to-Date ------------------------------ -------------------------------- 1999 1998 1999 1998 ----------- ----------- ------------ ------------ GROSS REVENUES $ 5,194,758 $ 4,648,684 $ 13,904,392 $ 12,393,503 ----------- ----------- ------------ ------------ DEDUCTIONS: Agents' commissions 358,596 209,030 797,036 459,819 Credit Card fees 42,323 37,556 105,494 119,857 Audit fees 3,250 3,250 6,500 6,499 ----------- ----------- ------------ ------------ 404,169 249,836 909,030 586,175 ----------- ----------- ------------ ------------ DJUSTED GROSS REVENUES 4,790,589 4,398,848 12,995,362 11,807,328 MANAGEMENT FEE (2,386,715) (2,190,295) (6,476,117) (5,880,163) ----------- ----------- ------------ ------------ GROSS INCOME DISTRIBUTION 2,403,874 2,208,553 6,519,245 5,927,165 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Management fee (268,808) (238,143) (722,754) (636,865) Marketing fee (146,623) (129,896) (394,230) (347,380) Miscellaneous pooled expense (22,323) (12,666) (68,060) (38,009) Corporate complimentary occupancy fees 8,328 9,544 16,645 16,553 Westin Associate room fees 13,196 7,960 26,027 7,960 Occupancy fees (487,723) (469,464) (1,040,382) (1,052,771) Advisory Committee expenses (7,166) (6,883) (13,582) (16,408) ----------- ----------- ------------ ------------ NET INCOME DISTRIBUTION 1,492,755 1,369,005 4,322,909 3,860,245 ADJUSTMENTS TO NET INCOME DISTRIBUTION: Occupancy fees 487,723 469,464 1,040,382 1,052,771 Hospitality suite fees 135 134 324 134 Greens fees 2,620 3,236 6,666 8,759 Additional participation credit 960 1,320 1,920 2,640 ----------- ----------- ------------ ------------ AMOUNT AVAILABLE FOR DISTRIBUTION TO PARTICIPANTS $ 1,984,193 $ 1,843,159 $ 5,372,201 $ 4,924,549 =========== =========== ============ ============ Average daily distribution $ 27.84 $ 23.23 $ 38.10 $ 32.53 Average room rate $ 132.89 $ 121.83 $ 165.24 $ 143.93 Occupied room nights 39,090 38,156 84,148 86,107 Available room nights 71,262 79,347 141,018 151,408 Occupancy percentage 54.9% 48.1% 59.7% 56.9% Average number of available units 783 872 779 837
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 LEASE OPERATION STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998 DISTRIBUTION FUND
CURRENT QUARTER YEAR-TO-DATE --------------------------- ---------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ----------- BALANCE, beginning of period $ -- $ -- $ -- $ -- ADDITIONS: Amount available for distribution 1,984,193 1,843,159 5,372,201 4,924,549 Interest received or receivable from Maintenance Escrow Fund 27,480 22,127 52,799 43,103 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (434,423) (417,867) (949,077) (937,145) Amounts accrued or paid to participants (1,577,250) (1,447,419) (4,475,923) (4,030,507) ----------- ----------- ----------- ----------- BALANCE, end of period $ -- $ -- $ -- $ -- =========== =========== =========== =========== MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 2,742,143 $ 2,231,466 $ 2,505,110 $ 1,901,616 ADDITIONS: Amounts withheld from occupancy fees 434,423 417,867 927,423 937,145 Interest earned 27,480 22,127 52,799 43,103 Charges to participants to establish or restore escrow balances 269,855 43,976 335,380 127,779 REDUCTIONS: Maintenance charges (224,352) (382,848) (342,696) (577,062) Carpet care reserve deposit (19,509) (9,389) (30,563) (21,055) Interest accrued or paid to Distribution Fund (27,480) (22,127) (52,799) (43,103) Refunds to participants as prescribed by the master lease agreements (57,853) (48,517) (249,947) (115,868) ----------- ----------- ----------- ----------- BALANCE, end of period $ 3,144,707 $ 2,252,555 $ 3,144,707 $ 2,252,555 =========== =========== =========== ===========
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 JUNE 30, 1999 AND 1998 DISTRIBUTION FUND
1999 1998 -------- -------- ASSETS CASH $ 1,000 $ 1,000 RECEIVABLE FROM GOLF HOST RESORTS, INC FOR DISTRIBUTION 332,009 283,690 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND -- 376 -------- -------- $333,009 $285,066 ======== ======== LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION $274,347 $235,763 DUE TO MAINTENANCE ESCROW FUND 58,662 49,303 -------- -------- $333,009 $285,066 ======== ======== MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 22,351 $ 33,553 DUE FROM DISTRIBUTION FUND 58,662 49,303 INVENTORY: Linen 45,818 44,147 Materials and supplies 14,672 15,274 -------- -------- $141,503 $142,277 ======== ======== LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 12,537 $ 18,687 INTEREST PAYABLE TO DISTRIBUTION FUND -- 376 PARTICIPANTS' FUND BALANCES 128,966 123,214 -------- -------- $141,503 $142,277 ======== ========
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 TAMARRON RENTAL POOL LEASE OPERATION STATEMENTS OF OPERATIONS FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998 DISTRIBUTION FUND
CURRENT QUARTER YEAR-TO-DATE -------------------------- ------------------------------ 1999 1998 1999 1998 --------- --------- ----------- ----------- GROSS REVENUES $ 734,637 $ 632,602 $ 1,327,534 $ 1,119,210 --------- --------- ----------- ----------- DEDUCTIONS: Agents' commissions 8,832 9,633 45,157 59,305 Sales and marketing expenses 55,098 47,445 99,565 83,941 Audit fees 3,255 2,972 6,510 5,573 --------- --------- ----------- ----------- 67,185 60,050 151,232 148,819 --------- --------- ----------- ----------- ADJUSTED GROSS REVENUES 667,452 572,552 1,176,302 970,391 MANAGEMENT FEE (333,726) (286,276) (588,151) (485,195) --------- --------- ----------- ----------- GROSS INCOME DISTRIBUTION 333,726 286,276 588,151 485,196 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Corporate complimentary occupancy fees 939 428 1,592 735 Occupancy fees (69,784) (66,085) (143,228) (129,648) Designated items (22,768) (15,259) (66,877) (31,878) Advisory Committee expenses (2,656) (3,014) (5,938) (5,941) --------- --------- ----------- ----------- POOLED INCOME 239,457 202,346 373,700 318,464 ADJUSTMENTS TO POOLED INCOME: Occupancy fees 69,784 66,085 143,228 129,648 --------- --------- ----------- ----------- NET INCOME DISTRIBUTION $ 309,241 $ 268,431 $ 516,928 $ 448,112 ========= ========= =========== =========== Average daily distribution $ 12.18 $ 10.14 $ 10.33 $ 8.60 Average room rate $ 103.22 $ 96.20 $ 90.96 $ 87.47 Room nights 7,117 6,576 14,594 12,795 Occupancy percentage 28.0% 24.8% 29.2% 24.6% Average number of available units 276 291 276 288 Number of units in Rental Pool at end of period 284 296 284 296
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 STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998 DISTRIBUTION FUND
CURRENT QUARTER YEAR-TO-DATE ------------------------- ------------------------- 1999 1998 1999 1998 --------- --------- --------- --------- BALANCE, beginning of period $ -- $ -- $ -- $ -- ADDITIONS: Amounts available for distribution 309,241 268,431 516,928 448,112 Interest received or receivable from Maintenance Escrow Fund -- 376 -- 778 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (34,894) (33,044) (71,619) (64,828) Amounts accrued or paid to participants (274,347) (235,763) (445,309) (384,062) --------- --------- --------- --------- BALANCE, end of period $ -- $ -- $ -- $ -- ========= ========= ========= ========= MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 193,614 $ 172,418 $ 174,111 $ 165,522 ADDITIONS: Amounts withheld from occupancy fees 34,894 33,044 71,619 64,828 Interest earned -- 376 -- 778 Reimbursement of designated items 22,768 15,259 66,877 31,878 Charges to participants to establish or restore escrow balances 3,906 96,422 16,734 201,694 REDUCTIONS: Maintenance and inventory charges (91,903) (147,408) (110,311) (180,484) Refurbishing charges (6,766) (29,334) (9,740) (120,588) Interest accrued or paid to Distribution Fund -- (376) -- (778) Designated items (22,768) (15,259) (66,877) (31,878) Refunds to participants as prescribed by Master Lease Agreement (4,779) (1,928) (13,447) (7,758) --------- --------- --------- --------- BALANCE, end of period $ 128,966 $ 123,214 $ 128,966 $ 123,214 ========= ========= ========= =========
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 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF GOLF HOSTS RESORTS, INC. FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1 U.S. DOLLARS 6-MOS DEC-31-1999 JAN-01-1999 JUN-30-1999 1 1,011,057 12,444,443 6,159,671 (136,041) 1,600,906 27,270,138 66,733,320 (24,352,528) 97,659,583 13,032,819 83,523,707 0 4,577,000 5,000 (9,561,374) 97,659,583 11,459,159 38,804,056 3,121,665 32,656,385 (794,837) 65,000 4,759,494 2,183,014 0 2,183,014 0 0 0 2,054,860 410.97 410.97
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