U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-QSB
(Mark One)
_X_ Quarterly report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 30, 1995
___ Transition report under Section 13 or 15(d) of the Exchange Act
For the period from _____ to _____
Commission file number 0-2528
POCONO HOTELS CORPORATION
(Exact Name of Small Business Issuer as Specified in Its Charter)
Delaware 51-0099583
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Indentification No.)
1209 Orange Street, Wilmington, Delaware 19801
(Address of Principal Executive Offices)
(302) 658-7581
(Issuer's Telephone Number, Including Area Code)
None
(Former Name, Former Address and Former Fiscal Year,
if Changes Since Last Report)
Check whether the issuer:
(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or 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 __
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.
9,812 Shares of Common Stock
POCONO HOTELS CORPORATION
INDEX
PAGE NO.
Consolidated Condensed Balance Sheets 2
September 30, 1995 & December 31, 1994
Consolidated Condensed Statements of Loss 3
Nine Months Ended September 30, 1995 & 1994
Consolidated Statement of Cash Flows 4
Nine Months Ended September 30, 1995 & 1994
Notes to the Consolidated Condensed Financial Statements 5
Management's Discussion and Analysis of the Consolidated Condensed Statements of Loss 6
Final Exhibits and Reports 7
POCONO HOTELS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEET
UNAUDITED
SEPT 30, 1995 DEC. 31, 1994
------------- -------------
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $296,603 $862,297
ACCOUNTS RECEIVABLE - NET 778,461 351,180
INVENTORIES 196,125 148,232
PREPAID EXPENSES 215,608 103,009
DEFERRED INCOME TAX BENEFIT 51,808 51,808
---------- ----------
TOTAL CURRENT ASSETS 1,538,605 1,516,526
INVESTMENTS AT COST 42,851 42,851
PROPERTY, PLANT AND EQUIPMENT 14,748,427 14,299,210
LESS: ACCUMULATED DEPRECIATION 11,109,952 10,749,953
---------- ----------
TOTAL PROPERTY, PLANT AND EQUIPMENT 3,638,475 3,549,257
CLUSTER HOMES AND LOTS HELD FOR SALE 725,818 365,307
TOTAL ASSETS 5,945,749 5,473,941
========== ==========
LIABILITIES & STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE 219,738 294,358
ACCRUED EXPENSES 194,699 234,567
TAXES PAYABLE AND ACCRUED 112,330 96,261
ADVANCE DEPOSITS 304,036 302,498
NOTES PAYABLE 0 0
---------- ----------
TOTAL CURRENT LIABILITIES 830,803 828,684
DEFERRED INCOME TAX LIABILITY
201,951 201,951
STOCKHOLDER'S EQUITY
CAPITAL STOCK:
PREFERRED STOCK -- 7% CUMULATIVE --
$100 PAR VALUE; AUTHORIZED 12,000 SHARES
ISSUED AND OUTSTANDING -- 9,423 SHARES 942,300 942,300
COMMON STOCK - NO PAR VALUE;
AUTHORIZED 16,000 SHARES,
ISSUED 13,994 SHARES 259,080 259,080
---------- ----------
TOTAL CAPITAL STOCK 1,201,380 1,201,380
RETAINED EARNINGS 3,768,311 3,298,623
--------- ---------
LESS: TREASURY STOCK AT COST 4,969,691 4,500,003
COMMON STOCK -- 4,182 SHARES 56,697 56,697
TOTAL STOCKHOLDER'S EQUITY 4,912,994 4,443,306
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY 5,945,749 5,473,941
========== ==========
2
POCONO HOTELS CORPORATION
CONSOLIDATED CONDENSED STATEMENT OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
UNAUDITED
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30 SEPT 30
1995 1994 1995 1994
---- ---- ---- ----
REVENUES
ROOMS $1,696,169 $1,462,345 $3,151,963 $2,967,462
FOOD & BEVERAGE 1,385,861 1,109,584 2,726,689 2,336,225
CLUSTER HOME SALES 10,000 590 18,234 346,925
GOLF & OTHER SPORTS 391,808 368,295 734,096 698,612
SUNDRY DEPARTMENTS 161,175 99,313 343,209 254,979
OTHER INCOME 201,728 141,048 363,486 276,266
-------- -------- -------- -------
TOTAL REVENUES 3,846,741 3,181,175 7,337,677 6,880,469
OPERATING COSTS & EXPENSES
FOOD & BEVERAGE 965,680 782,156 2,170,448 1,883,820
HOTEL OPERATING 748,049 581,512 1,675,797 1,469,554
COST OF CLUSTER HOMES 9,551 2,704 13,566 255,332
ADMIN. & GENERAL 407,036 376,083 1,173,624 1,214,236
ADVERTISING & PROMOTION 179,620 133,723 482,032 413,293
HEAT, LIGHT & POWER 81,149 82,766 249,227 274,999
REPAIRS & MAINTENANCE 170,219 265,333 554,943 585,546
& GROUNDS CARE
REAL ESTATE, CAPITAL 64,099 52,998 181,252 154,949
STOCK & OTHER TAXES
& BUILDING INSURANCE
INTEREST EXPENSE 3,682 8,938 7,100 20,586
DEPRECIATION 120,000 122,975 360,000 368,925
-------- -------- -------- -------
TOTAL EXPENSES 2,749,085 2,409,188 6,867,989 6,641,240
INCOME FROM OPERATIONS 1,097,656 771,987 469,688 239,229
LESS: PROVISION FOR -- 11,194 -- 39,337
INCOME TAXES (Note 3)
NET INCOME (LOSS) (Note 2) 1,097,656 760,793 469,688 199,892
DIVIDENDS ON PREFERRED
STOCK 16,490 16,490 49,470 49,470
NET (INCOME) APPLICABLE TO $1,081,166 $ 744,303 $ 420,218 $ 150,422
COMMON STOCKHOLDERS ======== ======== ======== ========
NET (INCOME) PER COMMON
SHARE BASED ON 9,812
SHARES OUTSTANDING
AFTER RECOGNITION OF
STOCK DIVIDENDS (Note 4) $110.19 $75.86 $42.83 $15.33
======= ====== ====== ======
3
POCONO HOTELS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
PERIOD ENDED
9/30/95 9/30/94
------- -------
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME (LOSS) $ 469,688 $ 199,892
ADJUSTMENTS TO RECONCILE NET INCOME TO
CASH PROIDED BY OPERATING ACTIVITIES
DEPRECIATION & AMORTIZATION 359,999 368,925
DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (427,281) (298,784)
DECREASE (INCREASE) IN INVENTORIES 47,893) (84,392)
DECREASE (INCREASE) IN PREPAID EXPENSES (112,599) (95,488)
DECREASE (INCREASE) IN CLUSTERED HOMES/LOTS (360,511) (206,808)
INCREASE (DECREASE) IN ACCOUNTS PAYABLE (74,620) (154,427)
INCREASE (DECREASE) IN ACCRUED EXPENSE (39,868) 64,016
INCREASE (DECREASE) IN ACCRUED INCOME TAXES -- 40,500
INCREASE (DECREASE) IN OTHER ACCRUED TAXES 16,069 (21,477)
INCREASE (DECREASE) IN ADVANCE DEPOSITS 100,538 39,431
--------- --------
TOTAL ADJUSTMENTS (586,165) (348,504)
--------- --------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (116,477) (148,612)
CASH FLOWS FROM INVESTING ACTIVITIES
PURCHASES OF PROPERTY, PLANT & EQUIPMENT (449,217) (163,435)
--------- --------
NET CASH (USED IN) INVESTING ACTIVITIES (449,217) (163,435)
CASH FLOW FROM FINANCING ACTIVITIES
PROCEEDS FROM CONSTRUCTION LOAN -- 295,418
PAYMENTS TO CONSTRUCTION LOAN -- (163,176)
PROCEEDS FROM BANK NOTES PAYABLE 600,000 850,000
PAYMENTS ON BANK NOTES PAYABLE (600,000) (850,000)
--------- --------
NET CASH FROM FINANCING ACTIVITIES 0 132,242
NET INCREASE (DECREASE) IN CASH (565,693) (179,805)
CASH & CASH EQUIVALENTS @ BEGINNING OF YEAR 862,297 183,427
--------- --------
CASH & CASH EQUIVALENTS @ END OF YEAR $296,604 $ 3,622
======== ========
4
POCONO HOTELS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
UNAUDITED
1. In the opinion of the company, the accompanying unaudited Consolidated
Condensed Financial Statements contain all adjustments (consisting of only
normal recurring accruals) necessary to present fairly the financial position as
of September 30, 1995 and 1994 and the results of operations for the three and
nine months then ended and changes in financial position for the nine months
then ended.
2. The results of operations for the three and nine months ended September 30,
1995 and 1994 are not necessarily indicative of the results to be expected for
the full year.
3. At September 30, 1995 the Company's arrearage in cumulative preferred stock
dividends amounted to $234.75 per share and the total of all such shares
outstanding at that date amounted to $2,212,049.
4. The Company, through a subsidiary, has issued irrevocable letters of credit
in favor of Barrett Township, which obligates the Subsidiary to complete certain
grading, road paving and installation of utilities at the sites. The letters of
credit expire in November 1995 or when these improvements are completed and
inspected by the Township.
5
POCONO HOTELS CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE
CONSOLIDATED CONDENSED STATEMENT OF INCOME
General
The Company derives substantially all of its revenues from the operation of a
resort in Skytop, Pennsylvania, and the development and sale of clustered homes.
Historically, the Company's revenues, and consequently, profits, have been
received primarily in May through October of each year. Operations in November
through April are usually at a loss. These seasonal fluctuations do not
materially affect the Company's or its subsidiaries' capital expenditures,
inventories, or terms on which business is conducted.
Results of Operations
Revenues for the third quarter of 1995 increased by $665,566 or 20.9% as
compared to the third quarter of 1994. Of this difference $9,410 resulted from
the sale of improvements to the cluster home in the third quarter of 1995 as
compared to only $590 in these sales in 1994. Lodge revenues were up $656,156 as
compared to 1994 third quarter levels. This was the result of an increase in
rooms occupancy for the Lodge of 1260 room nights, a change in occupancy
percentage from 66.4% in the third quarter of 1994 to 74.7% in the third quarter
of 1995.
Operating costs and expenses increased $339,897 for the third quarter of 1995
when compared with the same period a year ago. This increase is attributable to
the increased volume of business, as a percentage of sales, expenses decreased
from 75.7% in the third quarter of 1994 to 71.5% in the third quarter of 1995.
Changes in Financial Position
Liquidity and Capital Resources
The capital projects during the third quarter totalled $219,147.
The Company has lines of credit for the resort operation of $1,500,000 with an
outstanding balance of $0 at the end of September 1995.
Skytop Development Corporation has completed construction of twenty-eight of the
planned thirty-two units of the clustered homes. Of these all twenty-eight have
been sold. Construction of another two unit building began in May of 1995.
6
Item 9 Exhibits and Reports on Form 8-K
(a) Exhibits:
Computation of per share earnings
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30 SEPT 30
1995 1994 1995 1994
---- ---- ---- ----
Net Income (Loss) $ 1,097,656 $ 760,793 $469,688 $ 199,892
LESS:
Earnings applicable to cumulative
7% - $100 par value Preferred Stock
9,423 shares outstanding 16,490 16,490 49,470 49,470
Net Applicable to Common Stock $1,081,166 $ 744,303 $ 420,218 $ 150,422
Common Stock
Number of shares issued 13,994 13,994 13,994 13,994
Less number of shares in treasury 4,182 4,182 4,182 4,182
Net Shares 9,812 9,812 9,812 9,812
Net (Loss) per Common Share $ 110.19 $ 75.86 $ 42.83 $15.33
(b) Reports on Form 8-K
There were no reports on Form 8-K for the six months ended
September 30, 1995.
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.
__11/9/95__ __/s/ EDWARD MAYOTTE____________
Date Edward Mayotte, Vice President
__11/8/95__ __/s/ CHARLES F. HEWSON___________
Date Charles F. Hewson, Asst. Treasurer
7