UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2001
Commission File No. 0-3858
INTERNATIONAL LEISURE HOSTS, LTD.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Wyoming 86-0224163
- ------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
3207 S. Hardy Drive
Tempe, AZ 85282
- --------------------------------------- --------
(Address of principal executive office) (Zip Code)
Issuer's telephone number, including area code (480) 829-7600
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the 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 |_|
State the number of shares outstanding of each of the issuer's classes of common
stock as of the close of the latest practicable date. There were 694,407 shares
of $.01 par value common stock outstanding as of June 30, 2001.
Page 1 of 13
PART I - FINANCIAL INFORMATION
ITEM 1 - Summarized Financial Information
INTERNATIONAL LEISURE HOSTS, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
June March
30, 2001 31, 2001
----------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 299,531 $ 174,991
Accounts receivable 2,205 1,338
Income tax refund receivable 25,000
Merchandise inventories 205,472 112,002
Prepaid expenses and other 42,209 18,754
----------- -----------
Total current assets 574,417 307,085
----------- -----------
PROPERTY AND EQUIPMENT:
Buildings and improvements 6,504,051 6,258,425
Equipment 2,017,974 2,010,789
Leasehold improvements 325,600 325,600
Construction in progress 570,455 726,833
----------- -----------
Total property and equipment 9,418,080 9,321,647
Less accumulated depreciation and amortization 3,012,209 2,918,567
----------- -----------
Property and equipment - net 6,405,871 6,403,080
----------- -----------
TOTAL $ 6,980,288 $ 6,710,165
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable under lines of credit from related party $ 885,000 $ 835,000
Note payable under line of credit 500,000 422,420
Accounts payable - trade 179,359 201,639
Income taxes payable 24,454
Accrued liabilities 112,439 44,750
Advance deposits 308,135 139,012
----------- -----------
Total current liabilities 1,984,933 1,667,275
DEFERRED INCOME TAXES 156,076 156,076
----------- -----------
Total liabilities 2,141,009 1,823,351
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $5 par value - authorized 100,000 shares: none issued
Common stock, $.01 par value - authorized 2,000,000 shares: issued 718,373
shares 7,184 7,184
Additional paid-in capital 656,426 656,426
Retained earnings 4,254,631 4,302,166
----------- -----------
4,918,241 4,965,776
Less common stock in treasury - at cost, 23,966 shares (78,962) (78,962)
----------- -----------
Shareholders' equity - net 4,839,279 4,886,814
----------- -----------
TOTAL $ 6,980,288 $ 6,710,165
=========== ===========
See notes to unaudited condensed consolidated financial statements
Page 2 of 13
INTERNATIONAL LEISURE HOSTS, LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended
June 30,
---------------------
2001 2000
--------- ---------
REVENUES:
Sales of merchandise $ 340,357 $ 358,289
Room, cabin and trailer space rentals 327,427 309,846
Other rentals and income 89,757 45,676
Interest 490 2,410
--------- ---------
Total revenues 758,031 716,221
--------- ---------
COSTS AND EXPENSES:
Cost of merchandise 221,890 212,232
Operating 437,565 419,008
General and administrative 35,206 36,024
General and administrative - related party 33,750 35,155
Net loss on asset disposals 1,015
Depreciation and amortization 89,059 91,256
Interest 4,525
Interest - related party 8,571 27,408
--------- ---------
Total costs and expenses 830,566 822,098
--------- ---------
Loss before income taxes (72,535) (105,877)
Benefit for income taxes (25,000) (31,800)
--------- ---------
NET LOSS ($ 47,535) ($ 74,077)
========= =========
NET LOSS PER COMMON SHARE - BASIC $ (0.07) $ (0.11)
========= =========
See notes to unaudited condensed consolidated financial statements
Page 3 of 13
INTERNATIONAL LEISURE HOSTS, LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended June 30,
---------------------
2001 2000
--------- ---------
OPERATING ACTIVITIES:
Net loss ($ 47,535) ($ 74,077)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 89,059 91,256
Net loss on asset disposals 1,015
Changes in assets and liabilities:
Accounts receivable (867) 114,150
Income tax refund receivable (25,000) (31,800)
Merchandise inventories (93,470) (130,159)
Prepaid expenses and other (23,455) (13,670)
Accounts payable - trade (22,280) 76,573
Accounts payable - related party (49,470)
Income taxes payable (24,454) (59,851)
Accrued liabilities 67,689 52,945
Advance deposits 169,123 230,351
--------- ---------
Net cash provided by operating activities 88,810 207,263
INVESTING ACTIVITIES:
Purchases of property and equipment (91,850) (126,705)
Proceeds from sale of property and equipment 7,500
--------- ---------
Net cash used in investing activities (91,850) (119,205)
FINANCING ACTIVITIES:
Loan proceeds from affiliate 50,000
Loan proceeds from bank 77,580
--------- ---------
Net cash provided by financing activities 127,580
--------- ---------
NET INCREASE IN CASH AND CASH EQUIVALENTS 124,540 88,058
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 174,991 306,354
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 299,531 $ 394,412
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION - Cash paid for interest $ 25,985 $ 35,180
========= =========
See notes to unaudited condensed consolidated financial statements
Page 4 of 13
INTERNATIONAL LEISURE HOSTS, LTD.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three Month Periods Ended June 30, 2001 and 2000
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America for interim financial information and with the
instructions to Form 10-QSB. Accordingly, they do not include all of the
information and notes required by accounting principles generally accepted in
the United States of America for complete financial statements. In the opinion
of management, all adjustments and reclassifications considered necessary for a
fair and comparable presentation have been made and are of a normal recurring
nature. Operating results for the three months ended June 30, 2001 are not
necessarily indicative of the results that may be expected for the year ending
March 31, 2002. The enclosed financial statements should be read in conjunction
with the consolidated financial statements and notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended March 31, 2001.
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
International Leisure Hosts, Ltd. (the "Company") operates in one business
segment, the ownership and operation of Flagg Ranch Resort, a full-service
resort motel and trailer park located in the John D. Rockefeller Jr. Memorial
Parkway, approximately four miles north of Grand Teton National Park and two
miles south of the southern entrance to Yellowstone National Park.
Significant Accounting Policies - The Company prepares its financial statements
in accordance with accounting principles generally accepted in the United States
of America. A summary of significant accounting policies is as follows:
a. Basis of Consolidation - The consolidated financial statements include
the accounts of the Company and its subsidiary after elimination of all
significant intercompany transactions and accounts.
b. Cash Equivalents - For purposes of the consolidated statements of cash
flows, cash and cash equivalents represent cash in banks, money market
funds, and certificates of deposit with initial maturities of three
months or less.
c. Merchandise inventories are stated at the lower of aggregate cost
(first-in, first-out basis) or market.
d. Property and equipment are stated at cost. Depreciation is computed by
straight-line and accelerated methods over the estimated useful lives,
which range from 5 to 40 years. Leasehold improvements are amortized
using the straight-line method over the lesser of the estimated useful
life of the related asset or the term of the lease.
Page 5 of 13
The Company reviews the carrying values of its long-lived assets and
identifiable intangibles for possible impairment whenever events or
changes in circumstances indicate that the carrying amount of assets to
be held and used may not be recoverable. For assets to be disposed of,
the Company reports long-lived assets and certain identifiable
intangibles at the lower of carrying amount or fair value less cost to
sell.
e. Income taxes - Deferred income taxes have been provided for the
temporary differences between financial statement and income tax
reporting on certain transactions.
f. Use of Estimates - The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America necessarily requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
g. Net Loss per Common Share - Basic net loss per common share is computed
by dividing net loss by the weighted average number of common shares
outstanding. The weighted average number of common shares outstanding
was 694,407 and 694,477 for the three month periods ended June 30, 2001
and 2000, respectively. Dilutive securities were not included in the
loss per share calculation as their effect would be antidilutive. Basic
and diluted loss per share is the same for all periods presented.
h. Estimated Fair Value of Financial Instruments - The Company has
estimated the fair value of its financial instruments using available
market data. However, considerable judgment is required in interpreting
market data to develop estimates of fair value. The use of different
market assumptions or methodologies may have a material effect on the
estimates of fair values. The carrying values of cash, receivables,
lines of credit, accounts payable, and accrued expenses approximate
fair values due to the short-term maturities or market rates of
interest.
i. New Accounting Pronouncement - The Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards ("SFAS")
No. 133, Accounting for Derivative Instruments and Hedging Activities.
The effective date of SFAS No. 133 is fiscal years beginning after June
15, 2000. SFAS No. 133 establishes accounting and reporting standards
for derivative instruments, including certain derivatives embedded in
other contracts, and for hedging activities. It requires that entities
record all derivatives as either assets or liabilities, measured at
fair value. Management has determined that there will not be
significant impact to the financial statements from implementing SFAS
No. 133.
2. COMMITMENTS AND CONTINGENCIES
The Company receives its operating authorization from the National Park Service
("NPS"). The NPS Contract (the "Contract") which became effective on January 1,
1990, will expire on December 31, 2009. Under the terms of the Contract, prior
to December 31, 2002, the Company is required to move its existing 54-unit
riverside motel from its current location to the high ground above the Snake
River, to
Page 6 of 13
provide for new employee housing and make certain other improvements. The
Company has chosen to meet these requirements by moving the riverside motel and
converting it into employee housing, plus building additional employee support
facilities, which began in summer 1998, with expected completion in summer 2002.
The remaining cost of this relocation is estimated to be between $250,000 and
$500,000 depending on the number of employee housing units and the extent of
additional improvements required by the NPS.
The extensive capital investments which were required by the Company's current
Contract, were made based on the Park providing road access in the winter and
full winter services (i.e. snowmobile rentals) for the duration of the Contract.
These services are necessary to allow the Company to recover its substantial
investment and provide a reasonable opportunity to realize a profit consistent
with the Contract and applicable law. The Company relied on the Park's
representations to expend in excess of six million dollars in facilities
improvements. Precluding the Company from offering its full spectrum of winter
activities would materially and fundamentally alter key contract features and
substantially interfere with the Company's ability to recover its investments or
realize planned profit.
The Contract fee to the NPS is calculated at 2 percent of gross receipts (as
defined), subject to review and possible adjustment every five years. For the
three months ended June 30, 2001 and 2000, this fee amounted to $12,600, and
$13,900, respectively, which has been recorded as operating expense.
Flagg Ranch faces competition from hotels, camping areas and trailer facilities
in Yellowstone and Grand Teton National Parks, as well as from a large number of
hotels and motels in Wyoming, Montana and Idaho, offering some facilities which
are similar to those offered by Flagg Ranch. In addition, the business of Flagg
Ranch is susceptible to weather conditions and unfavorable trends in the economy
as a whole. Business could be significantly affected depending upon actions
which might be taken by the NPS if cutbacks are made to their budget. If the NPS
decides to close Yellowstone National Park for the winter months, then Flagg
Ranch would have to discontinue its winter operations. NPS budget cutbacks could
also negatively impact the length of the summer season and the number of
visitors to the Parks and have a corresponding negative impact on Flagg Ranch
revenues.
On May 20, 1997, the Fund for Animals, Biodiversity Legal Foundation et. al.
filed a lawsuit against the NPS challenging the action of the NPS regarding
winter use of Yellowstone and Grand Teton National Parks. The plaintiffs asked
the Federal Court to stop winter activities, primarily snowmobiling and related
snow grooming, until environmental impacts are documented. A settlement
agreement was reached that required the NPS to prepare an environmental impact
statement ("EIS") during which time period the Parks continued activities under
the then existing winter visitor-use plan.
Upon completion of the EIS, the NPS prepared a draft winter-use plan with
several alternatives. The NPS has adopted the draft winter-use plan which
eliminates snowmobiling from the Park with a phase-in period of three years
during which time the winter snowmobiling operation may be continued.
Per the settlement of a lawsuit that was filed by snowmobile manufacturers and
various other organizations to overturn the NPS's decision the NPS has agreed to
reopen its decision-making process regarding the use of snowmobiles in
Yellowstone and surrounding Parks. Under the settlement, the Park Service has
committed to reexamine its closure in light of new, environmentally friendly
snowmobile
Page 7 of 13
technology and other information provided by the public. While the Company is
optimistic regarding this settlement, until such time as there is a change in
the current winter-use plan, the winter snowmobiling operation will discontinue
operations after the 2001-2002 winter season. This will have a significant
negative impact on the revenues and financial results of the Company. During
fiscal 2001, winter operations accounted for approximately 35 percent of total
revenues.
Proprietary rights to certain facility improvements constructed by the Company
(including the new lodge and new cabin units) have been granted to the Company
under the terms of the Contract; however, the NPS may terminate the Contract and
purchase the Company's improvements, upon a determination that the public
interest requires Federal Government ownership of the improvements. In such
event, the Federal Government is required to pay a price for said improvements
equal to the cost of reconstruction less depreciation. If, however the Contract
is terminated by the Federal Government for default by the Company for
unsatisfactory performance as defined in the Contract, then the Federal
Government is required to pay a price equal to the tax basis of the
improvements. At the end of the Contract, if the Company is not the successful
bidder on a new contract for the property, then the Federal Government is
required to purchase from the Company the improvements (including the new lodge
and new cabin units) made to the property at a price equal to the cost of
reconstruction less depreciation.
The Department of Labor ("DOL") has notified the Company, on behalf of
current and past employees, that additional overtime is due for the period
beginning November 1, 1997. Currently the Company pays overtime for any hours in
excess of 48 during a one week period. The Company, as well as other Park
concessioners in the area, have operated under an exemption that exists in the
Fair Labor Standards Act. The DOL has claimed that this exemption does not apply
due to conflicting language in the Contract Work Hours Safety Standard Act which
requires overtime to be paid to laborers and mechanics working on a government
contract after 40 hours worked during a week. If the DOL prevails, the estimate
of the additional expense to the Company ranges from $40,000 to $60,000. While
there is no guarantee, the Company believes it will not be subject to the
additional overtime payments and, therefore, no amounts have been accrued for
this contingency in the accompanying financial statements.
3. TRANSACTIONS WITH RELATED PARTIES
General and administrative - related party expenses for the three months ended
June 30, 2001 and 2000 represent management fees and administrative expenses
paid to related parties and totaled approximately $34,000, and $35,000,
respectively. Related parties during the three months ended June 30, 2001, and
2000 are owned by the Company's current majority owner, Robert Walker, or family
members and also include a company owned by the Company's current President,
Michael P. Perikly.
Interest incurred on related party debt (see note 4) for the three months ended
June 30, 2001 and 2000 was $16,949 and $35,180, respectively. During the three
month period ended June 30, 2001, the Company borrowed $50,000 on the related
party line of credit agreement.
4. NOTES PAYABLE UNDER LINES OF CREDIT
During October 2000, the Company renewed a line of credit agreement
("Agreement") with an affiliated company, which provides for collateralized
borrowings of up to $1,500,000 at an interest rate of prime
Page 8 of 13
plus .5 percent. The Agreement was renewed until September 30, 2001. On December
1, 2000, the Company entered into a line of credit agreement ("Agreement") with
a second affiliated company expiring November 30, 2001, which provides for
collateralized borrowings of up to $500,000 at an interest rate of prime plus .5
percent. Borrowings under both Agreements are collateralized by the assets and
improvements of Flagg Ranch. The Company has borrowed $1,385,000 on the lines of
credit as of June 30, 2001. The terms of the Agreements contain, among other
provisions, requirements for maintaining minimum cash flows (as defined in the
Agreement) and places limitations on the Company's ability to make loans. As of
June 30, 2001, the Company was not in compliance with the minimum cash flow
requirement.
On October 5, 2000 the Company entered into a line of credit agreement with
Jackson State Bank ("JSB Agreement"), which provides for collateralized
borrowings of up to $500,000 at an interest rate of prime plus .875 percent.
Borrowings under the JSB Agreement are collateralized by the assets and
improvements of Flagg Ranch. The Company has borrowed $500,000 on the JSB
Agreement as of June 30, 2001.
During December 2000, the Company entered into an Agreement with an affiliated
company expiring November 30, 2001, which provides for collateralized borrowings
of up to $500,000 at an interest rate of prime plus .5 percent. Borrowings under
the Agreement are collateralized by the assets and improvements of Flagg Ranch.
The Company has borrowed $300,000 on this line of credit as of June 30, 2001.
The terms of the Agreement contain, among other provisions, requirements for
maintaining minimum cash flows (as defined in the Agreement) and place
limitations on the Company's ability to make loans. As of June 30, 2001, the
Company was not in compliance with the minimum cash flow requirement.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The statements contained in this Report regarding management's anticipation of
the Company's facility completion schedules, quality of facilities, fulfillment
of National Park Service requirements, consumer response to marketing efforts,
ability to offset inflation and adequacy of financing, constitute "forward
looking" statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Management's anticipation is based upon assumptions
regarding levels of competition, acceptance of facilities by consumers,
favorable weather conditions, ability to complete facility construction, the
market in which the Company operates, the stability of the economy and stability
of the regulatory environment. Any of these assumptions could prove inaccurate,
and therefore there can be no assurance that the forward-looking information
will prove to be accurate.
The Company's net loss for the first quarter ended June 30, 2001 was $48,000
($.07 per share). This compares to a net loss of $74,000 ($.11 per share) for
the quarter ended June 30, 2000. The $26,000 decrease in loss is primarily due
to an additional fire-related payment from the Company's insurance carrier and a
decrease in interest expense from the same quarter last year. Changes in the
Company's revenues and expenses for the quarters ended June 30, 2001 and 2000
are summarized below. All references to years, represent quarters ending June 30
of the stated year.
Page 9 of 13
Flagg Ranch, the principal business of the Company, is operated as a seasonal
resort. The two seasons coincide with the opening and closing dates of
Yellowstone and Grand Teton National Parks. The summer season runs from
approximately May 24 through October 8 and the winter season runs from late
December through early March. Therefore, the first quarter ended June 30, 2001
consists of only thirty- eight days of operations.
Revenues
Total revenues for 2001 increased by $42,000 or 6% from 2000. Of this increase,
$14,000 was from motel and cabin rentals, $4,000 from RV park rentals, $7,000
from trail ride revenue, $2,000 in gasoline sales, $36,000 in other revenue and
$1,000 in fishing trip income. Decreases of $12,000 from food services, $2,000
in grocery store sales, $6,000 in gift shop sales and $2,000 in float trip
revenue offset the above increases.
Expenses
The ratio of cost of merchandise sold to sales of merchandise was 65% and 59%,
respectively, in 2001 and 2000. The ratio of operating expenses to total revenue
decreased to 58% in 2001 from 59% in 2000. Operating expenses increased by
$19,000 in 2001 as compared to 2000. Of this increase, $28,000 was from labor,
$21,000 in repairs and maintenance, $18,000 in advertising, $2,000 in telephone
costs, $2,000 in Company vehicle and travel, $10,000 in insurance, and $3,000 in
other costs. Offsetting these increases were decreases of $2,000 in utilities,
$43,000 in operating supplies, $3,000 in office supplies, $6,000 in snowmobile
parts, $2,000 in printing, $2,000 in credit card fees, $3,000 in property taxes,
and $4,000 in other items. General and administrative expenses decreased $1,000
or 2% in 2001 as compared to 2000. General and administrative expenses - related
party decreased by $1,000 or 4% in 2001 as compared to 2000.
Inflation
The Company expects that it will be able to offset increases in costs and
expenses, principally labor, caused by inflation, by increasing prices on its
services with minimal effect on operations.
Liquidity and Capital Resources
Working capital decreased to a negative $1,411,000 at June 30, 2001 from a
negative $1,360,000 at March 31, 2001. Current assets increased by $267,000
primarily due to increases in cash, income tax receivable, and merchandise
inventories. Current liabilities increased by $318,000 primarily due to an
increase in notes payable under lines of credit and an increase in advance
deposits.
Further, during fiscal 2001, the Company incurred costs of approximately $92,000
related to certain construction projects. The Company may incur additional costs
of between $250,000 and $500,000 prior to December 31, 2002 to complete the
relocation of employee housing units as required under the NPS contract.
Page 10 of 13
The Company intends to fund these improvements through existing cash funds and
cash generated from operations. Cash generated from operations for the quarters
ended June 30, 2001 and 2000 was $89,000 and $207,000, respectively. The
construction funds will have to be obtained from outside sources to the extent
they exceed cash generated from operations. There is no guarantee that the
Company will be able to procure financing on favorable terms.
During October 2000, the Company renewed a line of credit agreement
("Agreement") with an affiliated company expiring September 30, 2001, which
provides for collateralized borrowings of up to $1,500,000 at an interest rate
of prime plus .5 percent. Borrowings under the Agreement are collateralized by
the assets and improvements of Flagg Ranch. The Company has borrowed $535,000 on
this line of credit as of June 30, 2001. The terms of the Agreement contain,
among other provisions, requirements for maintaining minimum cash flows (as
defined in the Agreement) and place limitations on the Company's ability to make
loans. As of June 30, 2001, the Company was not in compliance with the minimum
cash flow requirement.
During October 2000, the Company entered into a line of credit agreement with
Jackson State Bank ("JSB Agreement"), which provides for collateralized
borrowings of up to $500,000 at an interest rate of prime plus .875 percent.
Borrowings under the JSB Agreement are collateralized by the assets and
improvements of Flagg Ranch. The Company has borrowed $500,000 on the JSB
Agreement as of June 30, 2001.
During December 2000, the Company entered into an Agreement with an affiliated
company expiring November 30, 2001, which provides for collateralized borrowings
of up to $500,000 at an interest rate of prime plus .5 percent. Borrowings under
the Agreement are collateralized by the assets and improvements of Flagg Ranch.
The Company has borrowed $300,000 on this line of credit as of June 30, 2001.
The terms of the Agreement contain, among other provisions, requirements for
maintaining minimum cash flows (as defined in the Agreement) and place
limitations on the Company's ability to make loans. As of June 30, 2001, the
Company was not in compliance with the minimum cash flow requirement.
PART II - OTHER INFORMATION
ITEM I. Legal Proceedings
The Department of Labor ("DOL") has notified the Company, on
behalf of current and past employees, that additional overtime
is due for the period beginning November 1, 1997. Currently
the Company pays overtime for any hours in excess of 48 during
a one- week period. The Company, as well as other Park
concessioners in the area, have operated under an exemption
that exists in the Fair Labor Standards Act. The DOL has
claimed that this exemption does not apply due to conflicting
language in the Contract Work Hours Safety Standard Act which
requires overtime to be paid to laborers and mechanics working
on a government contract after 40 hours worked during a week.
If the DOL prevails, the estimate of the additional expense to
the Company ranges from $40,000 to $60,000. While there is no
guarantee, the Company believes it will not be subject to the
additional overtime payments.
Page 11 of 13
ITEM 2. Changes in Securities
None.
ITEM 3. Defaults upon Senior Securities
None.
ITEM 4. Submission of Matters to a Vote of Securities Holders
None
ITEM 5. Other Materially Important Events
None
ITEM 6. Exhibits and Reports on Form 8-K
(a) 1. Financial Statements Page
The following financial statements of International Leisure Hosts, Ltd.
are included in Part I, Item 1:
Condensed Consolidated Balance Sheets - June 30, 2001
(Unaudited)and March 31, 2001 2
Condensed Consolidated Statements of Operations -
Three months ended June 30, 2001 and 2000 (Unaudited) 3
Condensed Consolidated Statements of Cash Flows-
Three months ended June 30, 2001 and 2000 (Unaudited) 4
Notes to Unaudited Condensed Consolidated Financial Statements 5
3. The following exhibits are incorporated by reference as indicated:
3.1 By-Laws-Adopted June 22, 1992
filed with Form 10-K dated March 31, 1992
3.2 Articles of Incorporation-filed with Form 10-K dated March 31,
1986, pages 32-41
10.1 United States Department of the Interior National Park Service
Contract-filed with Form 10-Q dated December 31, 1989
Page 12 of 13
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed by the undersigned, thereunto duly authorized.
INTERNATIONAL LEISURE HOSTS, LTD.
(REGISTRANT)
ROBERT L. WALKER
-----------------------------------------
DATE: August 13, 2001 BY: ROBERT L. WALKER
Robert L. Walker
Chairman and Chief Executive Officer
MICHAEL P. PERIKLY
-----------------------------------------
DATE: August 13, 2001 BY: MICHAEL P. PERIKLY
Michael P. Perikly
President and Principal Financial Officer
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