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fully-diluted shares outstanding increased 13.5% to 3,616,271 last year, due to our secondary stock offering in May 2000. 

Operations generated $4,043,155 or $1.12 per fully diluted share in cash during 2000 compared to $2,714,409 or $0.85 per fully diluted share in cash generated in 1999. This increased level of cash generation will be carefully managed going forward to ensure a balance between borrowings, expansion and dividends paid. 

Your Board firmly believes that shareholders should receive some tangible benefit from the Company’s improving fortunes. For the four quarters of 1999 and 2000, respectively, cash dividends totaling $0.20 and $0.34 per share were declared. The annualized rate of dividend payments was increased by 25% in the fourth quarter of fiscal 2000, to $0.40 per share, and we will keep this under review as the current year progresses. 

Our Balance Sheet as of December 31, 2000 is exceptionally strong. Although Current Liabilities exceeded Current Assets at the end of the year, 

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investors should note that Current Liabilities include an obligation for Stock Compensation Expense that will be transferred to Stockholders’ Equity when the underlying options are exercised or expire. Our banking facility from The Royal Bank of Canada appears adequate for the foreseeable future. The Cash in Hand and Bank Overdraft figures result from our dual currency operations and are balanced out at regular intervals using the fixed US$/CI$ exchange rate. At present, our only Long-Term Debt is owed to European Investment Bank and reflects a loan that is being retired in semi-annual installments through December 2006 and carries a fixed average annual interest rate of 3.4%. 

We saw a resumption of historical growth rates in our Cayman market in 2000, reflecting increased tourism in the islands, the addition of several small hotels earlier in the year, and the opening of the new Holiday Inn in November. Construction on the huge Ritz Carlton project is proceeding slowly, but the entire development has recently cleared all planning approvals, and we expect the rate of construction to accelerate. Condominium development along Seven Mile Beach and private residential development in 

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