-----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, JF62zXo2N4Jau1nrKO1AKPfRWmr1JyWBsEOFLe3zTBWTUNmLv53nXTxtepqAqejq FgoKh/kU1bWwX43DHZEf6g== 0000950144-99-013536.txt : 19991123 0000950144-99-013536.hdr.sgml : 19991123 ACCESSION NUMBER: 0000950144-99-013536 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991122 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: 99762175 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 September 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) (727) 942-2000 - ---------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding twelve months, and (2) has been subject to the filing requirements for the past 90 days. - Yes [X] No [ ] Issuer has no common stock subject to this report. Page 1 of 17 2 GOLF HOST RESORTS, INC. AND SUBSIDIARY (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.) BALANCE SHEETS SEPTEMBER 30, 1999 AND DECEMBER 31, 1998 ASSETS (Substantially all pledged)
SEPTEMBER 30, DECEMBER 31, 1999 1998 ------------- ------------ (unaudited) CURRENT ASSETS: Cash $ 1,230,305 $ 1,396,404 Restricted cash 591,428 705,297 Accounts receivable, net 9,039,019 7,545,177 Notes receivable 1,349,823 1,349,823 Inventories and supplies 1,592,999 2,057,450 Prepaid expenses and other assets 362,233 1,061,668 ----------- ----------- 14,165,807 14,115,819 Assets held for sale 9,444,303 12,684,302 ----------- ----------- Total current assets 23,610,110 26,800,121 INTANGIBLES, net 27,225,779 28,547,188 PROPERTY AND EQUIPMENT, at cost, less accumulated depreciation and amortization 42,413,778 41,585,829 OTHER ASSETS 314,526 1,874,723 ----------- ----------- $93,564,193 $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 SEPTEMBER 30, 1999 AND DECEMBER 31, 1998 LIABILITIES AND SHAREHOLDER'S (DEFICIT)
SEPTEMBER 30, DECEMBER 31, 1999 1998 ------------- ------------- (unaudited) CURRENT LIABILITIES: Account receivable line of credit $ 549,051 $ 3,832,443 Accounts payable 5,243,842 3,110,889 Accrued expenses 4,501,392 5,241,267 Deposits and prepaid fees 2,938,725 3,657,913 Intercompany payable 1,274,118 459,520 ------------- ------------- Total current liabilities 14,507,128 16,302,032 NOTES PAYABLE 83,475,565 83,416,053 OTHER LONG-TERM LIABILITIES 5,008,634 4,353,543 DEFERRED INCOME TAXES 1,770,467 1,770,467 ------------- ------------- Total liabilities 104,761,794 105,842,095 ------------- ------------- 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 (2,222,601) 1,940,766 ------------- ------------- Total shareholder's (deficit) (11,197,601) (7,034,234) ------------- ------------- Total liabilities and shareholder's (deficit) $ 93,564,193 $ 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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
Quarters ended Sept 30, Nine Months ended Sept 30, ----------------------------- ----------------------------- 1999 1998 1999 1998 ------------ ------------ ------------ ------------ REVENUES: Resort facilities $ 2,393,168 $ 2,402,941 $ 16,810,156 $ 14,809,288 Food and beverage 2,457,808 1,944,683 12,746,726 11,309,350 Golf 1,855,983 1,876,610 11,942,740 12,115,312 Other 941,544 1,142,866 4,942,827 5,105,779 ------------ ------------ ------------ ------------ 7,648,503 7,367,100 46,442,449 43,339,729 ------------ ------------ ------------ ------------ COST AND OPERATING EXPENSES: Resort facilities 2,354,056 2,143,596 11,525,521 10,962,581 Food and beverage 2,273,866 1,469,145 8,398,909 7,554,440 Golf 1,350,653 1,537,987 5,348,060 5,379,059 Other 3,043,321 3,478,545 13,046,178 10,923,568 General and administrative 1,586,581 1,422,971 4,946,193 3,792,029 ------------ ------------ ------------ ------------ 10,608,477 10,052,244 43,264,861 38,611,677 GAIN (LOSS) ON ASSETS HELD FOR SALE 504,764 327,475 (172,871) 327,475 ------------ ------------ ------------ ------------ OPERATING INCOME (LOSS) (2,465,317) (2,357,669) 3,004,717 5,055,527 INTEREST, NET 2,216,359 2,309,290 6,975,853 7,028,357 ------------ ------------ ------------ ------------ INCOME (LOSS) BEFORE INCOME TAX (4,681,676) (4,666,959) (3,971,136) (1,972,830) PARENT INCOME TAX CHARGE -- -- -- 381,614 GAIN FROM CHANGE IN TAX STATUS -- -- -- 13,426,039 ------------ ------------ ------------ ------------ INCOME (LOSS) BEFORE DIVIDEND REQUIREMENTS ON PREFERRED STOCK (4,681,676) (4,666,959) (3,971,136) 11,071,595 DIVIDEND REQUIREMENTS ON PREFERRED STOCK 64,077 64,078 192,231 192,234 ------------ ------------ ------------ ------------ NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDER $ (4,745,753) $ (4,731,037) $ (4,163,367) $ 10,879,361 ============ ============ ============ ============ EARNINGS (LOSS) PER COMMON SHARE $ (949.15) $ (946.21) $ (832.67) $ 2,175.87 ============ ============ ============ ============
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 TWENTY-ONE MONTHS ENDED SEPTEMBER 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 4,577,00 (13,557,000) 1,940,766 (7,034,234) Net income available to common shareholder - - - - - (4,163,367) (4,163,367) ----- ------- --------- ----------- ------------ ------------ ------------- Balance, September 30, 1999 5,000 $ 5,000 4,577,000 $ 4,577,000 $(13,557,000) $ (2,222,601) $ (11,197,601) ===== ======= ========= =========== ============ ============ =============
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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
1999 1998 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) before dividend requirements on preferred stock $ (3,971,136) $ 11,071,595 Noncash items included in income: Depreciation and amortization 2,984,409 3,003,035 Write-off of startup costs 1,623,446 -- Gain from change in tax status -- -- Increase in deferred tax -- (13,134,558) Changes in operating working capital 1,080,186 2,493,962 ------------ ------------ Cash provided by operations 1,716,905 3,434,034 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Decrease (increase) in other assets (63,249) (356,231) Purchases of property and equipment (2,498,195) (6,037,586) Net recovery of cost of property and equipment sold or retired 7,229 (10,921) (Increase) decrease in assets held for sale 3,240,000 (1,427,727) ------------ ------------ Cash provided by (used in) investing activities 685,785 (7,832,465) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Decreases in notes payable (284,157) (355,987) Additional borrowings 303,416 4,743,324 Repayment of line of credit (3,283,392) -- Increases in other long-term liabilities 695,344 -- ------------ ------------ Cash provided by (used for) financing activities (2,568,789) 4,387,337 ------------ ------------ NET INCREASE (DECREASE) IN CASH (166,099) (11,094) CASH, BEGINNING OF PERIOD 1,396,404 56,090 ------------ ------------ CASH, END OF PERIOD $ 1,230,305 $ 44,996 ============ ============ NONCASH FINANCING AND INVESTING ACTIVITIES: The Company satisfied its preferred stock dividend liability to GHI through the intercompany account $ 192,231 $ 192,234
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, 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 September 1998 financial statements to conform to the December 1998 presentation. (2) LONG-TERM OBLIGATIONS Long-term obligations consist of the following:
SEPTEMBER 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 4,417,764 4,645,264 Capital lease at 9.51% 104,248 119,181 ------------ ------------ 83,497,012 83,436,029 Less current maturities 21,447 19,976 ------------ ------------ $ 83,475,565 $ 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, are also utilized. Guest occupancy for the quarter, measured in room nights, declined .8% from the level of the prior year. On a divisional basis, Innisbrook's occupancy rose .6% while Tamarron experienced a reduction in occupancy of 3.3%. The modest increase in Innisbrook's room nights occurred primarily in the transient segment. The decline in Tamarron's occupancy occurred in the transient segment, while the group segment occupancy declined slightly. Revenues from resort operations on a per occupied room basis increased 3.0%, from $328.48 to $338.44. The resorts shared the improved guest spending, with Innisbrook's guest spending per occupied room rising 3.2% while Tamarron enjoyed a 2.8% increase. This resulted from a 3.8% increase in Innisbrook's revenue, with Tamarron posting a .6% decline. The average daily room rate rose 4.5% during the period. Innisbrook's average daily room rate declined 1.0% and Tamarron's increased 13.1%. Innisbrook's meals served rose 29% and its revenue per meal served declined 2.4%. The increase in meals served resulted from the opening of an on property pizzeria and a lounge. These facilities generate a lower average check than the restaurants. Tamarron's meals served approximated the prior year, while its revenue per meal declined 4.2% due to a change in the mix of banquet/restaurant meals served. Innisbrook golf revenues were down 1.1% from the prior year, as revenue per player declined 14.8%. This resulted from a 16.1% increase in rounds played; the increase being attributable to a discounted rate promotional program. Tamarron's golf revenues were down 7.6%, reflecting the 8.4% decrease in rounds played, which was partially due to inclement weather. On a divisional basis, Innisbrook and Tamarron's revenue per occupied room for the third quarter of 1999 and 1998 were $336.49 and $341.98 as compared to $326.12 and $332.59, respectively. As a result of the improved guest spending, total resort operations revenues rose $257,000, or 2.2%. There was no Pine Ridge lot sale activity in the third quarter of either year, and 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 as a percentage of revenues approximated the prior year. At Innisbrook, the gross operating loss for the quarter improved 20.2%, or $108,000, as relative departmental operating expense increased by a modest 2.2% over the prior year. At the same time, Innisbrook's fixed charges and other expenses declined .6% from the prior year. While Tamarron's gross operating revenue increased as noted above, its cost and operating expenses decreased 7.7% while its fixed charges and other expenses approximated those of the prior year. FINANCIAL CONDITION AND LIQUIDITY The Company's working capital position (exclusive of Assets Held for Sale) was a deficit of $341,000 at September 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. YEAR 2000 ISSUE The Company has carefully reviewed the impact of the year 2000 issues on its information technology and other electronic systems as well as its vendors and suppliers. It has determined the consequences of its year 2000 issues will not have a material impact on either the future operating results or financial condition of the Company. 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 nine months ended September 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: November 22, 1999 By: /s/ Merrick Kleeman ------------------------ ---------------------------- Merrick Kleeman President Date: November 22, 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 nine months ended September 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 SEPTEMBER 30, 1999 AND 1998 DISTRIBUTION FUND
1999 1998 ----------- ----------- ASSETS RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION $ 921,741 $ 903,483 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND 54,339 24,030 ----------- ----------- $ 976,080 $ 927,513 =========== =========== LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION 716,279 670,103 DUE TO MAINTENANCE ESCROW FUND 259,801 257,410 PARTICIPANTS' FUND BALANCES -- -- ----------- ----------- $ 976,080 $ 927,513 =========== =========== MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 5,925,231 $ 2,042,626 RECEIVABLE FROM DISTRIBUTION FUND 259,801 257,410 INVENTORY 821,586 -- INTEREST RECEIVABLE 76,582 19,285 ----------- ----------- $ 7,083,200 $ 2,319,321 =========== =========== LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 128,881 $ 5,844 INTEREST PAYABLE TO DISTRIBUTION FUND 54,339 24,030 CARPET CARE RESERVE (10,817) 9,994 PARTICIPANTS' FUND BALANCES 6,910,797 2,279,453 ----------- ----------- $ 7,083,200 $ 2,319,321 =========== ===========
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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 DISTRIBUTION FUND
CURRENT QUARTER YEAR-TO-DATE ------------------------------ ------------------------------ 1999 1998 1999 1998 ------------ ------------ ------------ ------------ GROSS REVENUES $ 2,358,631 $ 2,230,251 $ 16,263,023 $ 14,623,754 ------------ ------------ ------------ ------------ DEDUCTIONS: Agents' commissions 132,772 37,919 929,808 497,738 Credit Card fees 21,321 21,328 126,815 141,185 Audit fees 3,250 3,250 9,750 9,749 ------------ ------------ ------------ ------------ 157,343 62,497 1,066,373 648,672 ------------ ------------ ------------ ------------ ADJUSTED GROSS REVENUES 2,201,288 2,167,754 15,196,650 13,975,082 MANAGEMENT FEE (1,096,349) (1,079,003) (7,572,466) (6,959,166) ------------ ------------ ------------ ------------ GROSS INCOME DISTRIBUTION 1,104,939 1,088,751 7,624,184 7,015,916 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Management fee (121,368) (113,559) (844,122) (750,424) Marketing fee (66,200) (61,942) (460,430) (409,322) Miscellaneous pooled expense (14,164) (20,274) (82,224) (58,283) Corporate complimentary occupancy fees 8,320 9,601 24,965 26,154 Westin Associate room fees 16,089 4,370 42,116 12,330 Occupancy fees (292,187) (289,988) (1,332,569) (1,342,759) Advisory Committee expenses (7,861) (6,115) (21,443) (22,523) ------------ ------------ ------------ ------------ NET INCOME DISTRIBUTION 627,568 610,844 4,950,477 4,471,089 ADJUSTMENTS TO NET INCOME DISTRIBUTION: Occupancy fees 292,187 289,988 1,332,569 1,342,759 Hospitality suite fees -- -- 324 134 Greens fees 1,086 1,331 7,752 10,090 Additional participation credit 900 1,320 2,820 3,960 ------------ ------------ ------------ ------------ AMOUNT AVAILABLE FOR DISTRIBUTION TO PARTICIPANTS $ 921,741 $ 903,483 $ 6,293,942 $ 5,828,032 ============ ============ ============ ============ Average daily distribution $ 12.88 $ 10.95 $ 29.61 $ 24.92 Average room rate $ 103.76 $ 98.73 $ 152.16 $ 134.12 Occupied room nights 22,732 22,590 106,880 109,036 Available room nights 71,557 82,492 212,575 233,900 Occupancy percentage 31.8% 27.4% 50.3% 46.6% Average number of available units 778 897 779 857
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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
CURRENT QUARTER YEAR-TO-DATE ----------------------------- ----------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ----------- DISTRIBUTION FUND BALANCE, beginning of period $ -- $ -- $ -- $ -- ADDITIONS: Amount available for distribution 921,741 903,483 6,293,942 5,828,032 Interest received or receivable from Maintenance Escrow Fund 54,339 24,030 107,138 67,133 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (259,801) (257,410) (1,208,878) (1,194,555) Amounts accrued or paid to participants (716,279) (670,103) (5,192,202) (4,700,610) ----------- ----------- ----------- ----------- BALANCE, end of period $ -- $ -- $ -- $ -- =========== =========== =========== =========== MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 3,144,707 $ 2,252,555 $ 2,505,110 $ 1,901,616 ADDITIONS: Amounts withheld from occupancy fees 259,801 257,410 1,187,224 1,194,555 Interest earned 54,339 24,030 107,138 67,133 Charges to participants to establish or restore escrow balances 4,362,515 34,104 4,697,895 161,883 REDUCTIONS: Maintenance charges (842,121) (184,490) (1,184,817) (761,552) Carpet care reserve deposit (11,687) (5,800) (42,250) (26,855) Interest accrued or paid to Distribution Fund (54,339) (24,030) (107,138) (67,133) Refunds to participants as prescribed by the master lease agreements (2,418) (74,326) (252,365) (190,194) ----------- ----------- ----------- ----------- BALANCE, end of period $ 6,910,797 $ 2,279,453 $ 6,910,797 $ 2,279,453 =========== =========== =========== ===========
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, 1999 AND 1998 DISTRIBUTION FUND
1999 1998 -------- -------- ASSETS CASH $ 1,000 $ 1,000 RECEIVABLE FROM GOLF HOST RESORTS, INC. FOR DISTRIBUTION 788,850 754,275 INTEREST RECEIVABLE FROM MAINTENANCE ESCROW FUND -- 212 -------- -------- $789,850 $755,487 ======== ======== LIABILITIES AND PARTICIPANTS' FUND BALANCES DUE TO PARTICIPANTS FOR DISTRIBUTION $706,425 $666,442 DUE TO MAINTENANCE ESCROW FUND 83,425 89,045 -------- -------- $789,850 $755,487 ======== ======== MAINTENANCE ESCROW FUND ASSETS CASH AND CASH EQUIVALENTS $ 80,530 $ 26,176 DUE FROM DISTRIBUTION FUND 83,425 89,045 INVENTORY: Linen 34,116 56,313 Materials and supplies 15,860 12,281 -------- -------- $213,931 $183,815 ======== ======== LIABILITIES AND PARTICIPANTS' FUND BALANCES ACCOUNTS PAYABLE $ 4,666 $ 5,139 INTEREST PAYABLE TO DISTRIBUTION FUND -- 212 PARTICIPANTS' FUND BALANCES 209,265 178,464 -------- -------- $213,931 $183,815 ======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 DISTRIBUTION FUND
CURRENT QUARTER YEAR-TO-DATE ------------------------------ ------------------------------ 1999 1998 1999 1998 ----------- ----------- ----------- ----------- GROSS REVENUES $ 1,728,323 $ 1,671,867 $ 3,055,857 $ 2,791,077 =========== =========== =========== =========== DEDUCTIONS: Agents' commissions 18,248 125,390 63,405 92,845 Sales and marketing expenses 129,624 33,540 229,189 209,331 Audit fees 3,255 3,714 9,765 9,287 ----------- ----------- ----------- ----------- 151,127 162,644 302,359 311,463 ----------- ----------- ----------- ----------- ADJUSTED GROSS REVENUES 1,577,196 1,509,223 2,753,498 2,479,614 MANAGEMENT FEE (788,598) (754,611) (1,376,749) (1,239,807) ----------- ----------- ----------- ----------- GROSS INCOME DISTRIBUTION 788,598 754,612 1,376,749 1,239,807 ADJUSTMENTS TO GROSS INCOME DISTRIBUTION: Corporate complimentary occupancy fees 252 1,191 1,844 1,926 Occupancy fees (129,582) (137,427) (272,810) (267,075) Designated items (17,632) (19,329) (84,509) (51,207) Advisory Committee expenses -- (1,527) (5,938) (7,468) ----------- ----------- ----------- ----------- POOLED INCOME 641,636 597,520 1,015,336 915,983 ADJUSTMENTS TO POOLED INCOME: Occupancy fees 129,582 137,427 272,810 267,075 ----------- ----------- ----------- ----------- NET INCOME DISTRIBUTION $ 771,218 $ 734,947 $ 1,288,146 $ 1,183,058 =========== =========== =========== =========== Average daily distribution $ 32.45 $ 29.97 $ 17.46 $ 15.44 Average room rate $ 132.90 $ 122.53 $ 110.73 $ 105.57 Room nights 13,005 13,644 27,599 26,439 Occupancy percentage 54.7% 55.6% 37.4% 34.5% Average number of available units 258 267 270 283
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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
CURRENT QUARTER YEAR-TO-DATE ----------------------------- ----------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ----------- DISTRIBUTION FUND BALANCE, beginning of period $ -- $ -- $ -- $ -- ADDITIONS: Amounts available for distribution 771,218 734,947 1,288,146 1,183,059 Interest received or receivable from Maintenance Escrow Fund -- 212 -- 990 REDUCTIONS: Amounts withheld for Maintenance Escrow Fund (64,793) (68,716) (136,412) (133,544) Amounts accrued or paid to participants (706,425) (666,443) (1,151,734) (1,050,505) ----------- ----------- ----------- ----------- BALANCE, end of period $ -- $ -- $ -- $ -- =========== =========== =========== =========== MAINTENANCE ESCROW FUND BALANCE, beginning of period $ 128,966 $ 123,214 $ 174,111 $ 165,522 ADDITIONS: Amounts withheld from occupancy fees 64,793 68,716 136,412 133,544 Interest earned -- 212 -- 990 Reimbursement of designated items 17,632 19,329 84,510 51,207 Charges to participants to establish or restore escrow balances 36,758 147,266 53,492 348,960 REDUCTIONS: Maintenance and inventory charges (19,065) (97,891) (129,376) (278,375) Refurbishing charges 779 (57,664) (8,961) (178,252) Interest accrued or paid to Distribution Fund -- (212) -- (990) Designated items (17,632) (19,329) (84,510) (51,207) Refunds to participants as prescribed by Master Lease Agreement (2,966) (5,177) (16,413) (12,935) ----------- ----------- ----------- ----------- BALANCE, end of period $ 209,265 $ 178,464 $ 209,265 $ 178,464 =========== =========== =========== ===========
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 1 U.S. DOLLARS 9-MOS DEC-31-1999 JAN-01-1999 SEP-30-1999 1 1,230,305 591,428 10,475,907 (87,065) 1,395,219 23,610,110 67,437,307 (24,923,528) 93,564,193 14,507,128 88,484,199 0 4,577,000 5,000 (15,779,601) 93,564,193 16,547,294 46,442,449 3,885,880 43,264,861 0 76,000 6,975,853 (3,971,136) 0 (3,971,136) 0 0 0 (4,163,367) (832.67) (832.67)
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