-----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, JSDye4WjtDlXxSreK8gqXxB9UF90H6J6UiwnUHL+zFwGW/I140TzvCeZjQ6fFeMF f86U1IXHQT4IJDCR2YRYqw== 0000069422-96-000002.txt : 19960216 0000069422-96-000002.hdr.sgml : 19960216 ACCESSION NUMBER: 0000069422-96-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960214 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERGROUP CORP CENTRAL INDEX KEY: 0000069422 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 133293645 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-10324 FILM NUMBER: 96519392 BUSINESS ADDRESS: STREET 1: 2121 AVE OF THE STARS STREET 2: STE 2020 CITY: LOS ANGELES STATE: CA ZIP: 90067 BUSINESS PHONE: 3105561999 MAIL ADDRESS: STREET 1: 2121 AVE OF THE STARS SUITE 2020 CITY: LOS ANGELES STATE: CA ZIP: 90067 FORMER COMPANY: FORMER CONFORMED NAME: MUTUAL REAL ESTATE INVESTMENT TRUST DATE OF NAME CHANGE: 19860408 10QSB 1 U. S. SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-QSB ( X ) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1995 ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the transition period from ______ to ______ Commission file number 1-10324 THE INTERGROUP CORPORATION - ------------------------------------------------------- (Name of small business issuer as specified in its charter) DELAWARE - ------------------------------------------------------------- (State or other jurisdiction of incorporation or organization) 13-3293645 - ------------------------------------------- (I.R.S. Employer Identification No.) 2121 Avenue of the Stars, Suite 2020 Los Angeles, California 90067 - ------------------------------------------------- (Address of principal executive offices) (Zip Code) Issuer's telephone number: (310) 556-1999 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO __ The number of shares outstanding of the issuer's Common Stock, $.01 par value, as of January 29, 1996 was 834,349 shares. Transitional Small Business Disclosure Format (check one): YES __ NO X THE INTERGROUP CORPORATION INDEX TO FORM 10-QSB PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements: Consolidated Balance Sheet December 31, 1995 Consolidated Statements of Operations Six Months Ended December 31, 1995 and 1994 Consolidated Statements of Cash Flows Six Months Ended December 31, 1995 and 1994 Consolidated Statements of Operations Three Months Ended December 31, 1995 and 1994 Notes to Consolidated Financial Statements Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II. OTHER INFORMATION THE INTERGROUP CORPORATION CONSOLIDATED BALANCE SHEET (Unaudited) December 31, 1995 ------------- ASSETS Investment in real estate, at cost: Land $4,585,808 Buildings, improvements and equipment 30,431,401 Property held for sale or development 1,564,543 ------------- 36,581,752 Less: accumulated depreciation (11,351,659) ------------- 25,230,093 Marketable equity securities, at market value 12,975,373 Other investments 5,397,384 Cash and cash equivalents 27,970 Restricted cash 1,609,733 Rent and other receivables 1,231,191 Prepaid expenses 1,126,214 Other assets 161,125 ------------- Total Assets $47,759,083 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage notes payable $30,793,342 Due to securities broker 5,872,625 Accounts payable and other liabilities 3,319,836 Deferred income taxes 1,896,225 ------------- Total Liabilities 41,882,028 ------------- Commitments and Contingencies Shareholders' Equity: Preferred stock, $.10 par - 100,000 shares authorized; none issued Common stock, $.01 par - 1,500,000 shares authorized; 1,494,824 shares issued; 834,349 shares outstanding 14,948 Paid-in capital 12,754,454 Accumulated deficit (1,079,706) ------------- 11,689,696 Add (Less): Unrealized gain on marketable securities, net of deferred taxes 2,842,131 Treasury stock, at cost, 660,475 shares (7,840,373) Note receivable - stock options (814,399) ------------- Total Shareholders' Equity 5,877,055 ------------- Total Liabilities and Shareholders' Equity $47,759,083 ============= The accompanying notes are an integral part of the consolidated financial statements. THE INTERGROUP CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Six Months Ended December 31, 1995 1994 -------------------------- Real estate operations: Rental income $5,545,184 $5,404,109 Rental expenses: Mortgage interest expense 1,413,053 1,360,383 Property operating expenses 2,629,657 2,696,117 Real estate taxes 424,415 427,137 Depreciation 784,074 904,609 -------------------------- Income from real estate operations 293,985 15,863 -------------------------- Investment transactions: Investment gains 1,844,855 2,172,694 Investment losses (580,687) (1,052,269) Dividend and interest income 83,355 31,874 Margin interest and trading expenses (890,785) (311,744) -------------------------- Income from investment transactions 456,738 840,555 -------------------------- Other income (expense): General and administrative expenses (591,031) (832,895) Miscellaneous expense (1,177,086) (1,546) -------------------------- Other expense (1,768,117) (834,441) -------------------------- Income (Loss) before provision for income taxes (1,017,394) 21,977 Provision for income tax taxes (benefit) (407,037) 65,688 -------------------------- Net Loss ($610,357) ($43,711) ========================== Net Loss per share ($0.66) ($0.05) ========================== Weighted average number of shares outstanding 920,378 866,991 ========================== The accompanying notes are an integral part of the consolidated financial statements. THE INTERGROUP CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended December 31, 1995 1994 -------------------------- Cash flows from operating activities: Net Loss ($610,357) ($43,711) Adjustments to reconcile net income to cash provided by (used for) operating activities: Depreciation of real estate 784,074 904,609 Amortization of other assets 80,419 181,551 Decrease (increase) in receivables, net (991,719) 216,765 Decrease (increase) in prepaid expenses (166,064) 47,946 Decrease (increase) in other assets 2,255 (95,417) Increase in accounts payable and other liabilities 942,044 96,205 Increase (decrease) in income taxes 547,934 (164,636) -------------------------- Net cash provided by operating activities 588,586 1,143,312 -------------------------- Cash flows from investing activities: Additions to buildings, improvements and equipment (624,028) (777,344) Investment in real estate (596,841) (4,212,485) Reduction (investment) in marketable securities 961,490 (5,052,333) Investment in other investments (1,186,150) (129,325) -------------------------- Net cash used for investing activities (1,445,529) (10,171,487) -------------------------- Cash flows from financing activities: Principal payments on mortgage notes payable (186,498) (155,203) Proceeds from real estate financing 462,405 1,622,045 Increase in mortgage notes payable due to real estate acquisition 595,000 3,000,000 Decrease (increase) in restricted cash (49,925) 434,225 Increase (decrease) in due to securities broker (932,461) 6,986,352 Increase (decrease) in accounts payable related to short positions and other investments 465,814 (2,081,600) Sale of 16,500 shares of common stock 907,500 0 Purchase of treasury stock (440,213) (60,643) -------------------------- Net cash provided by financing activities 821,622 9,745,176 -------------------------- Net increase (decrease) in cash and cash equivalents (35,321) 717,001 Cash and cash equivalents at beginning of period 63,291 617,314 -------------------------- Cash and cash equivalents at end of period $27,970 $1,334,315 ========================== The accompanying notes are an integral part of the consolidated financial statements. THE INTERGROUP CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended December 31, 1995 1994 -------------------------- Real estate operations: Rental income $2,767,389 $2,743,995 Rental expenses: Mortgage interest expense 707,240 724,914 Property operating expenses 1,277,527 1,291,871 Real estate taxes 218,851 240,079 Depreciation 397,719 470,093 -------------------------- Income from real estate operations 166,052 17,038 -------------------------- Investment transactions: Investment gains 956,926 1,264,831 Investment losses (375,771) (63,755) Dividend and interest income 31,985 25,589 Margin interest and trading expenses (484,529) (182,801) -------------------------- Income from investment transactions 128,611 1,043,864 -------------------------- Other income (expense): General and administrative expenses (290,162) (469,586) Miscellaneous expense (904,116) (13,864) -------------------------- Other expense (1,194,278) (483,450) -------------------------- Income (Loss) before provision for income taxes (899,615) 577,452 Provision for income tax taxes (benefit) (360,398) 271,566 -------------------------- Net Income (Loss) ($539,217) $305,886 ========================== Net Income (Loss) per share ($0.58) $0.35 ========================== Weighted average number of shares outstanding 924,764 866,991 ========================== The accompanying notes are an integral part of the consolidated financial statements. THE INTERGROUP CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) For the Six Months Ended December 31, 1995 1. General: The interim financial information is unaudited; however, in the opinion of The Intergroup Corporation (the "Company"), the interim financial information contains all adjustments, including normal recurring adjustments, necessary to present fairly the results for the interim period. These consolidated financial statements should be read in conjunction with the Company's June 30, 1995 audited consolidated financial statements and notes thereto. 2. Marketable Equity Securities: Marketable securities are recorded in accordance with Statement of Financial Accounting Standards No. 115 (SFAS 115), "Accounting for Certain Investments in Debt and Equity Securities." All securities are equity securities classified as available-for-sale except short positions, which represent obligations of the Company and are classified as trading activity. At December 31, 1995, the aggregate market value of marketable equity securities exceeded the aggregate cost by $4,664,997. The net unrealized gain is comprised of gross unrealized gains of $6,964,127 reduced by gross unrealized losses of $2,299,130. The net unrealized gain, net of deferred taxes of $1,822,866, is included as a separate item in shareholders' equity. During the six months ended December 31, 1995, proceeds from sales of securities were $21,546,129 and gross realized gains and losses, determined using FIFO costs, were $1,844,855 and $580,687, respectively. Any unrealized gains or losses relating to short positions are recognized in earnings in the current period. There were no naked short positions at December 31, 1995. Dividends on short positions are recorded on the ex-dividend date. 3. Commitments and Contingencies: The Company subscribed to purchase shares of a Fund and has made investments of $665,279. The balance of the subscription price of $334,721 may be called from time to time by the Fund Manager at any time through April 14, 2001. In April 1993, a claim was filed in the State Superior Court for the County of Los Angeles by Dennis Hawk, Lucas Devenn and Golden West Entertainment ("GWE") against Intergroup, John V. Winfield and GWE. Such action charges Intergroup and/or John V. Winfield with breach of contract, fraud, conspiracy to defraud, negligent misrepresentation, assault, battery, economic duress, and breach of fiduciary duty. Such claim sought damages in excess of $800,000, but after discovery was completed, were believed by management to expose the Company to liability in the range of $300,000 to $600,000 exclusive of litigation costs. Recently, Plaintiffs broadened their damage claims to include lost profits from 22 motion picture and television projects claimed to be in development. Intergroup and Mr. John Winfield, in addition to denying Plaintiffs' claims, have charged Devenn and Hawk with fraud, breach of contract, breach of fiduciary duty, malpractice as to Hawk who is an attorney, and intentional infliction of mental distress. The high cost of litigation to defend against the broadened claims increased the likelihood that the case would be settled and the Company and the plaintiffs have tentatively agreed, in principle, to settle the same. Accrued costs of litigation and estimates management believe will settle the matter aggregated approximately $1,180,000 for the six months ended December 31, 1995. These costs are reflected in Miscellaneous Expense. The Company, together in some instances, with certain of its officers, is a defendant or co-defendant in various legal proceedings (including an arbitration proceeding with Aura Systems Inc. in which discovery is underway) involving breach of contract and various other claims incident to the conduct of its businesses. Management does not expect the Company to suffer any material liability by reason of such actions. 4. Income Taxes: The components of the deferred tax liability as of December 31, 1995 are as follows: Marketable securities basis differences $1,619,792 Depreciation and fixed asset basis differences 647,210 Minority interests 579,315 Valuation allowance 145,977 ------------- Total deferred tax credits 2,992,294 ------------- NOL and AMT credit carryovers (869,232) State income taxes (181,641) Miscellaneous (45,196) ------------- Total deferred tax debits (1,096,069) ------------- Net deferred taxes $1,896,225 ============= There was no change in the valuation allowance during the period. The provision for income taxes is comprised of the following: Current tax benefit ($2,519,082) Change in deferred taxes 2,112,045 ------------- Total income tax benefit ($407,037) ============= Income tax expense differs from the amount computed by multiplying the statutory federal income tax rate times income (loss) before taxes as follows: Federal statutory tax ($345,914) State income taxes, net of federal benefit (51,637) Other (9,486) ------------- Total income tax benefit ($407,037) ============= 5. Related Party Transactions: In March 1986, the Company's president exercised an option to purchase 125,000 shares of common stock in exchange for cash and a note due in March 1996. At December 31, 1995, the balance of the note receivable, net of unamortized discount and accrued interest receivable, was $814,399. The note receivable is reflected as a reduction of shareholders' equity. The Company's president is the trustee of the Employee Stock Ownership Plan. In his role as trustee, the president has the power to vote the shares of stock allocated to participants' accounts when directions are not provided to the trustee on a timely basis. THE INTERGROUP CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS For the Six Months Ended December 31, 1995 vs. 1994 Income from real estate operations for the six months ended December 31, 1995 as compared to the six months ended December 31, 1994, was impacted primarily by increased revenues and reduced costs achieved through the economies of scale and added on-site management attention brought about by the change to an unaffiliated national property management company on April 1, 1995, partially offset by the costs of closing of the Company's property management division. Income from real estate operations was also impacted by two offsetting factors: (i) the transfer by the Company of its Indio, California properties to the mortgage lender in March 1995 which eliminated the continuing negative cash flow and depreciation of the Indio properties and (ii) the purchase of a 224-unit property in Irving, Texas in September 1994 resulting in a net increase in revenues and a net decrease in costs. Rental income from real estate operations increased by 3% to $5,545,184 from $5,404,109. The increase was primarily due to the addition of the new Texas property in September 1994 and an increase in average market rental rates which together more than offset the loss of rental income from the Indio properties and the increase in vacancy losses at three properties. Mortgage interest expense increased 4% to $1,413,053 from $1,360,383 primarily due to the mortgage interest expense associated with the new Texas property. Property operating expenses decreased 2% to $2,629,657 from $2,696,117 primarily due to cessation of expenses related to the Indio properties, lower insurance costs and the closing of the Company's property management division, partially offset by expenditures associated with the new Texas property and higher utility expenses. Real estate taxes decreased 1% to $424,415 from $427,137 primarily due to reduced taxes on one of the St. Louis properties and elimination of the Indio properties offset by real estate taxes on the new Texas property and a refund of taxes on the Harrisburg property received in the quarter ended September 30, 1994. Depreciation decreased 13% to $784,074 from $904,609 due to the cessation of depreciation on the Indio properties, offset by depreciation of the new Texas property and improvements to the other properties. Investment gains decreased 15% to $1,844,855 from $2,172,694 and investment losses decreased 45% to $580,687 from $1,052,269 including the recognition of an unrealized loss of $181,664, related to short sales in the prior period. Realized investment gains and losses may fluctuate significantly from period to period, with a meaningful effect on the Company's net earnings. However, the amount of realized investment gain or loss for any given period has no predictive value, and variations in amount from period to period have no practical analytical value, particularly in view of the net unrealized gain in the Company's overall investment portfolio. Margin interest and trading expenses increased 186% to $890,785 from $311,744 primarily due to higher margin loan balances and additional personnel. During the six months ended December 31, 1995, the market value of the marketable equity securities portfolio decreased approximately 12% to $12,975,373 from $14,751,444 and net unrealized gains decreased 15% to $4,664,997 from $5,479,578. As of December 31, 1995, the Company had no naked short positions. The overall investment portfolio, which includes marketable securities and other investments, had a positive return of 0.2% for the six months ended December 31, 1995 and a negative return of 16.6% for the six months ended December 31, 1994, based on the net realized and unrealized gains and losses over the monthly average investment balance of the investment portfolio. The overall investment portfolio achieved a positive average annual compounded return of 20.9% and 22.0% for the five years ended December 31, 1995 and 1994, respectively. General and administrative expenses decreased 29% to $591,031 from $832,895 due to lower aggregate office and travel expenses and fewer personnel. Miscellaneous expense increased to $1,177,086 from $1,546 due to the accrued costs of litigation and estimated settlement expenses (See Note 3 to the financial statements). During the six months ended December 31, 1995, the Company improved properties in the aggregate amount of $624,028. Management believes the improvements to the properties should enhance market values, maintain the competitiveness of the Company's properties and potentially enable the Company to obtain a higher yield through higher rents. For the Three Months Ended December 31, 1995 vs. 1994 Income from real estate operations for the three months ended December 31, 1995 as compared to the three months ended December 31, 1994, was positively impacted primarily by increased revenues and reduced costs from economies of scale and added on-site management attention brought by the change to an unaffiliated national property management company on April 1, 1995, which were partially offset by the costs of closing of the Company's property management division. In addition, the transfer by the Company of its Indio, California properties to the mortgage lender in March 1995 eliminated the continuing negative cash flow and depreciation of the Indio properties. Rental income from real estate operations increased by 1% to $2,767,389 from $2,743,995. The increase was primarily due to an increase in average rental rates and lease renewals, offset by an increase in vacancy losses at three properties. Mortgage interest expense decreased 2% to $707,240 from $724,914 primarily due to lower loan cost amortization from refinancing of two of the Company's properties, partially offset by interest on a higher loan balance for the purchase of land held for development in St. Louis. Property operating expenses decreased 1% to $1,277,527 from $1,291,871 primarily due to lower insurance, salaries and administrative expenses partially offset by higher repair and utility expenses. Real estate taxes decreased 9% to $218,851 from $240,079 primarily due to a reduction in taxes at one of the St. Louis properties. Depreciation decreased 15% to $397,719 from $470,093 due to the elimination of depreciation on the Indio properties, offset by depreciation of improvements to the other properties. Investment gains decreased 24% to $956,926 from $1,264,831 and investment losses increased 489% to $375,771 from $63,755. Margin interest and trading expenses increased 165% to $484,529 from $182,801 primarily due to higher margin loan balances and additional personnel. The overall investment portfolio, which includes marketable securities and other investments, had a negative return of 16.9% for the three months ended December 31, 1995 and a negative return of 17.6% for the three months ended December 31, 1994, based on the net realized and unrealized gains and losses over the monthly average investment balance of the investment portfolio. General and administrative expenses decreased 38% to $290,162 from $469,586 due to lower aggregate office and travel expenses and fewer personnel. Miscellaneous expense increased to $904,116 from $13,864 due to the accrued costs of litigation and estimated settlement expenses (See Note 3 to the financial statements). During the three months ended December 31, 1995, the Company improved properties in the aggregate amount of $440,531. Management believes the improvements to the properties should enhance market values, maintain the competitiveness of the Company's properties and potentially enable the Company to obtain a higher yield through higher rents. FINANCIAL CONDITION AND LIQUIDITY The Company's principal cash flows are generated from its real estate operations and securities transactions. The Company generated net cash flow of $588,586 from operating activities, used net cash flow of $1,445,529 for investing activities and generated net cash flow of $821,622 from financing activities during the six months ended December 31, 1995. The Company's total outstanding indebtedness is comprised of mortgages on real estate which amounted to $30,793,342 as of December 31, 1995. During the six months ended December 31, 1995, the Company refinanced its Parsippany, NJ property for $5,325,000 and borrowed $595,000 for the acquisition of the St. Louis land. Management will pursue additional refinancing activities as considered necessary or when deemed favorable to the Company. The Company intends to sell all or a portion of certain of its unimproved land. Should the Company consummate a sale, all or a portion of the proceeds may be utilized to provide additional funds for improvements and to take advantage of other investment opportunities. The Company subscribed to purchase shares of a Fund and made investments of $665,279. The balance of the subscription price of $334,721 may be called by the Fund Manager at any time through April 14, 2001. For fiscal 1996, management anticipates that its net cash flow from real estate operations, securities transactions and real estate financing activities will be sufficient to fund the Company's anticipated acquisitions, property improvements, debt service requirements and operating expenses. Management also anticipates that the net cash flow generated from future operating activities will be sufficient to meet its long-term debt service requirements. PART II. OTHER INFORMATION Item 1: Material developments in connection with legal proceedings are incorporated herein by reference to Part I, Note 3 to the Consolidated Financial Statements, of this Form 10-QSB. Item 4: The 1995 Annual Meeting of the Stockholders of the Company was held on December 5, 1995, at the Park Hyatt Los Angeles Hotel, 2151 Avenue of the Stars, Century City, California, with the following results: (1) Howard A. Jaffe and William J. Nance were elected Directors of the Company with a majority of votes to serve until the 1998 Annual Meeting (John V. Winfield, Josef A. Grunwald and Mildred Bond Roxborough continue to serve as Directors of the Company); (2) The ratification of Price Waterhouse as independent accountants of the Company was passed with a majority of votes; and (3) The approval of a proposed amendment to the Company's Certificate of Incorporation to increase the number of authorized shares of Preferred Stock to 2,500,000 shares, increase the number of authorized shares of Common Stock to 4,000,000 shares and divide the Common Stock into two series consisting of 1,500,000 shares of Class A Common Stock and 2,500,000 shares of Class B Common Stock was passed with a majority of votes. The Class A Common Stock and the Class B Common Stock would have identical rights, preferences and privileges, except that the Class B Common Stock would have one-tenth of a vote per share. The amendment becomes effective only upon filing with the Delaware Secretary of State, and the Board of Directors reserves the right to determine not to file the amendment. The amendment has not been filed to date. A tabulation of votes follows: Proposal (1) - Directors: Votes For Against Abstained Unvoted Howard A. Jaffe 778,155 6,912 William J. Nance 778,048 7,019 Proposal (2) - Accountants: Price Waterhouse 780,562 2,631 1,874 Proposal (3) - Amendment to Certificate of Incorporation 470,089 17,133 5,444 292,401 SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereto duly authorized. THE INTERGROUP CORPORATION (Registrant) Date: January 29, 1996 By /s/ John V. Winfield - ------------------------------------------------------------------- John V. Winfield, Chairman; President and Chief Executive Officer Date: January 29, 1996 By /s/ Howard A. Jaffe - ------------------------------------------------------------------- Howard A. Jaffe Chief Operating Officer and Secretary Date: January 29, 1996 By /s/ Gregory C. McPherson - ------------------------------------------------------------------- Gregory C. McPherson Executive Vice President and Assistant Secretary Date: January 29, 1996 By /s/ Keith R. Schrupp - ------------------------------------------------------------------- Keith R. Schrupp Vice President of Finance Date: January 29, 1996 By /s/ David C. Gonzalez - ------------------------------------------------------------------- David C. Gonzalez Controller EX-27 2 ART 5 FDS FOR 2ND QUARTER 10-QSB
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB FOR THE SIX MONTHS ENDED DECEMBER 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS JUN-30-1996 DEC-31-1995 27,970 12,975,373 1,231,191 0 0 22,528,990 36,581,752 11,351,659 47,759,083 11,088,686 30,793,342 14,948 0 0 (24,916,287) 47,759,083 0 7,473,394 0 5,309,618 1,768,117 0 1,413,053 (1,017,394) (407,037) (610,357) 0 0 0 (610,357) (0.66) (0.66)
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