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Florida-Fun Train suspends operations
Following is a quote from FTRN's 9/17 press release:
First American Railways Inc., owner and operator of the Florida Fun-Train, announced the indefinite suspension of the Florida Fun-Train entertainment/transportation service between Fort Lauderdale and Orlando and Tampa and Orlando. A First American spokesperson said, ''We have been unable to finance our previously announced continuing monthly operating cash flow deficit.''
(end of quote)
FTRN's financial situation had been deteriorating for months. Here's a brief synopsis from the Sept. 5 issue of my newsletter, Rail StockWatch:
On August 12, FTRN was delisted from the Nasdaq SmallCap Market because of deficiencies in the company's net tangible assets and share price. It had been trading under symbol FTRNC, but will now trade as FTRN on the OTC Bulletin Board... The company's 10-QSB report filed August 24, 1998, discloses that as of August 18 FTRN was in default on interest payments due on certain convertible notes, and that the noteholders "may be requested to convert their notes to equity..." The company's balance sheet showed negative shareholders' equity of $5.1 million as of June 30, 1998, versus positive equity of $1.6 million on December 31, 1997... The Form 10-QSB disclosed that the company was seeking additional sources of financing in order to continue operating the Florida Fun-Train, and that without such financing and a pickup in ridership, operations beyond August 31 were uncertain. A September 3 call to the Fun-Train reservation line (888-386-8722) disclosed that operations were continuing and that reservations are being taken through May 1999... For the period ending June 30, 1998, FTRN had a 2Q98 loss from Durango & Silverton Narrow Gauge operations of $1.06 million, or 5 cents per diluted share, plus a loss of $1.84 million (8 cents per share) on disposal of D&SNG.
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