SADDLEBROOK RESORTS INC - Quarter Report: 2017 March (Form 10-Q)

SADDLEBROOK RESORTS INC - Quarter Report: 2017 March (Form 10-Q)

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Table of Contents

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Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark one)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

COMMISSION FILE NUMBER: 2-65481

SADDLEBROOK RESORTS, INC.

(Exact name of registrant as specified in its charter)

Florida

59-1917822

(State of incorporation)

(IRS employer

identification no.)

5700 Saddlebrook Way, Wesley Chapel, Florida 33543-4499

(Address of principal executive offices)

813-973-1111

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “accelerated filer,” “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

Registrant has 100,000 shares of common stock outstanding, all of which are held by an affiliate of the Registrant.

INDEX


	Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Saddlebrook Resorts, Inc.
Balance Sheets at March 31, 2017 and December 31, 2016		3
Statements of Operations and Accumulated Earnings for the three months ended March 31, 2017 and 2016		4
Statements of Cash Flows for the three months ended March 31, 2017 and 2016		5
Notes to Financial Statements		6

Saddlebrook Rental Pool Operation
Balance Sheets at March 31, 2017 and December 31, 2016		9
Statements of Operations for the three months ended March 31, 2017 and 2016		10
Statements of Changes in Participants’ Fund Balance for the three months ended March 31, 2017 and 2016		11
Notes to Financial Statements		12

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		13

Item 3. Quantitative and Qualitative Disclosures About Market Risk		14

Item 4. Controls and Procedures		15

PART II - OTHER INFORMATION

Item 1. Legal Proceedings		15

Item 6. Exhibits		16

Signature		17

- 2 -

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

SADDLEBROOK RESORTS, INC.

BALANCE SHEETS


	March 31, 2017 (Unaudited)		December 31, 2016
Assets
Current assets:
Cash and cash equivalents	$	773,543	$	834,371
Escrowed cash		279,250		409,680
Accounts receivable, net		4,921,784		1,810,865
Due from related parties		990,736		1,006,972
Inventory and supplies		1,175,911		1,185,033
Prepaid expenses and other assets		1,227,836		1,073,590

Total current assets		9,369,060		6,320,511
Property, buildings and equipment, net		18,792,160		19,223,911

Total assets	$	28,161,220	$	25,544,422

Liabilities and Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	352,560	$	352,560
Current portion of capital lease obligation		111,327		128,376
Escrowed deposits		279,250		409,680
Accounts payable		1,180,164		756,199
Accrued rental distribution		1,531,033		586,761
Accrued expenses and other liabilities		972,976		1,434,814
Current portion of deferred income		791,007		764,660
Guest deposits		1,119,428		2,200,312
Due to related parties		12,037,944		10,889,134

Total current liabilities		18,375,689		17,522,496
Long-term debt, net of deferred issuance costs of $53,092 and $58,108 at March 31, 2017 and December 31, 2016, respectively		6,028,643		6,111,768
		6,028,643		6,111,768
Long-term capital lease obligation		42,688		57,236
Deferred income		547,173		501,649

Total liabilities		24,994,193		24,193,149

Shareholder’s equity:
Common stock, $1.00 par value, 100,000 shares authorized and outstanding		100,000		100,000
Additional paid-in capital		1,013,127		1,013,127
Retained earnings		2,053,900		238,146

Total shareholder’s equity		3,167,027		1,351,273

Total liabilities and shareholder’s equity	$	28,161,220	$	25,544,422

The accompanying Notes to Financial Statements are

an integral part of these financial statements

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SADDLEBROOK RESORTS, INC.

STATEMENTS OF OPERATIONS

AND ACCUMULATED EARNINGS

(Unaudited)


	Three months ended March 31,
	2017			2016
Resort revenues	$	12,422,339		$	12,343,843

Costs and expenses:
Operating costs		8,512,844			8,403,355
Sales and marketing		674,535			538,424
General and administrative		850,243			888,488
Depreciation		492,004			468,509

Total costs and expenses		10,529,626			10,298,776

Net operating income before other (income) and expense		1,892,713			2,045,067

Other (income) and expense:
Other income		(4,976	)		(8,017	)
Interest expense		81,935			78,886

Total other expense		76,959			70,869

Net income		1,815,754			1,974,198

Accumulated earnings at beginning of period		238,146			1,473,580


Accumulated earnings at end of period	$	2,053,900		$	3,447,778

The accompanying Notes to Financial Statements are

an integral part of these financial statements

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SADDLEBROOK RESORTS, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)


	Three months ended March 31,
	2017			2016
Operating activities:
Net income	$	1,815,754		$	1,974,198
Non-cash items included in net income:
Depreciation		492,004			468,509
Amortization of debt financing costs		5,016			5,017
(Increase) decrease in:
Accounts receivable		(3,110,919	)		(2,101,796	)
Inventory and supplies		9,122			26,470
Prepaid expenses and other assets		(154,246	)		(77,173	)
Increase (decrease) in:
Accounts payable		423,965			260,002
Guest deposits		(1,080,884	)		(535,249	)
Accrued expenses and other liabilities		482,434			1,190,002
Deferred income		71,871			94,102

Cash flow (used in) provided by operating activities		(1,045,883	)		1,304,082

Investing activities:
Capital expenditures		(60,253	)		(322,462	)

Cash flow used in investing activities		(60,253	)		(322,462	)

Financing activities:
Payments on long-term debt		(88,141	)		(88,141	)
Payments on capital lease obligations		(31,597	)		(29,463	)
Net borrowings from related parties		1,165,046			445,411

Cash flow provided by (used in) financing activities		1,045,308			327,807

Net (decrease) increase in cash		(60,828	)		1,309,427
Cash at beginning of period		834,371			375,912


Cash at end of period	$	773,543		$	1,685,339


Supplemental disclosure of cash flow information:
Cash paid for interest	$	76,959		$	73,869

The accompanying Notes to Financial Statements are

an integral part of these financial statements.

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SADDLEBROOK RESORTS, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

Saddlebrook Resorts, Inc. (the “Company”) developed and operates Saddlebrook Resort, which is a condominium hotel and resort located in Wesley Chapel, Florida.

The Company’s accompanying balance sheet for March 31, 2017, and its statements of operations and accumulated earnings and cash flows for the three month periods ended March 31, 2017 and 2016, are unaudited but reflect all adjustments which are, in the opinion of management, necessary for the fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The balance sheet at December 31, 2016 has been derived from the audited financial statements as of that date.

The Company’s business is seasonal. Therefore, the results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for future interim periods or the full fiscal year.

These financial statements and related notes are presented for interim periods in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X, and, consequently, do not include all disclosures normally required by accounting principles generally accepted in the United States. Accordingly, these financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Note 2. Accounts Receivable


	March 31, 2017 (Unaudited)			December 31, 2016
Trade accounts receivable	$	4,987,606		$	1,828,542
Less reserve for bad debts		(65,821	)		(17,677	)


	$	4,921,785		$	1,810,865

Note 3. Property, Buildings and Equipment


	March 31, 2017 (Unaudited)			December 31, 2016
Land and land improvements	$	8,458,554		$	8,458,554
Buildings and recreational facilities		31,947,870			31,942,695
Machinery and equipment		20,891,843			20,836,945
Construction in progress		481,996			481,816

		61,780,263			61,720,010
Less accumulated depreciation		(42,988,103	)		(42,496,099	)


	$	18,792,160		$	19,223,911

The Company’s property, buildings and equipment are pledged as security for its debt (see Note 4).

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Note 4. Notes Payable and Capital Lease Obligation

On December 6, 2015 the Company’s financing agreement with a third party lender was modified to include renewal for the existing principal balance of $4,875,000, along with an advance of an additional $2,000,000. The new term note expires December 6, 2020. At March 31, 2017 $6,434,295 was outstanding under the note. The term note requires monthly principle payments of $29,380 plus interest of 3% over the one month Libor index (3.79% at March 31, 2017). The term note is collateralized by all current and subsequently acquired real and personal property. The term note requires the Company to maintain a Debt Ratio, as defined, of 1.25%. The Company was in default of this covenant as of December 31, 2016; however, the Company received a waiver for this default from its lender. Under the terms of its agreement, the debt service covenant will be re-measured at December 31, 2017. Management believes, based on its expectations that it will be in compliance with the debt covenant at that date; however there can be no assurances that it will be in compliance. Should the Company not be in compliance at December 31, 2017, it will seek a waiver or modification of the covenant. In addition, under the terms of the loan agreement, the Company has certain remedies available to it by which it can cure the default, and it is management’s intent to do so if necessary.

On April 24, 2017, the Company entered in to a revolving line of credit agreement with the same third party lender in the maximum amount of $1,500,000 to be used as working capital as needed. The agreement is cross collateralized with the existing mortgage under the same terms and conditions. Amounts borrowed under the revolving line of credit will bear interest at 3% over the one month LIBOR index. The line of credit will terminate on December 6, 2020. The line of credit must be fully repaid at least 60 days of each year of the agreement. As of the date of this filing, the Company has not made any draw on this agreement.

On December 13, 2012, the Company entered into a capital lease obligation for equipment in the amount of $80,479. The capital lease is secured by the equipment purchased, matures in November 2017 and requires monthly payments of $1,426, including interest at 2.44%. At March 31, 2017, the amount due on this capital lease obligation was $11,304.

On December 2, 2012, the Company entered into a capital lease obligation for equipment in the amount of $255,874. The assets associated with this lease cost $294,724, of which $38,850 was reduced through the Company’s trade-in of existing equipment. This capital lease is secured by the equipment purchased, matures in December 2017 and requires monthly payments of $4,995, including interest at 6.41%, beginning in January 2013. At March 31, 2017, the amount due on this capital lease obligation was $43,781.

On January 15, 2014 the Company entered into a capital lease obligation for equipment in the amount of $150,000. The capital lease is secured by equipment purchased, matures in December 2018 and requires monthly payments of $3,024 including interest of 7.75%. At March 31, 2017, the amount due on this capital lease obligation was $56,558.

On January 15, 2014, the Company entered into a capital lease obligation for equipment in the amount of $102,000. The capital lease is secured by equipment purchased, matures in December 2018 and requires monthly payments of $2,233, including interest an 11.30%. At March 31, 2017 the amount due on this capital lease obligation was $42,372.

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Note 5. Related Party Receivables and Payables

Related party receivables and payables at March 31, 2017 and December 31, 2016 are the result of net intercompany transactions and cash transfers between the Company and its shareholder and affiliated companies. Related party receivables and payables are unsecured and non-interest bearing.

Note 6. Income Taxes

The Company is currently a member of a Qualified Subchapter S Subsidiary Group. Accordingly, no income tax expense was reflected in the Company’s operating results as the tax is assessed to the shareholders of the Company’s parent company.

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SADDLEBROOK RENTAL POOL OPERATION

BALANCE SHEETS

DISTRIBUTION FUND


	March 31, 2017 (Unaudited)		December 31, 2016
Assets
Receivable from Saddlebrook Resorts, Inc.	$	1,531,033	$	586,761


Liabilities and Participants’ Fund Balance
Due to participants for rental pool distribution	$	1,271,423	$	536,148
Due to maintenance escrow fund		259,610		50,613


	$	1,531,033	$	586,761

MAINTENANCE ESCROW FUND


	March 31, 2017 (Unaudited)			December 31, 2016
Assets
Cash and cash equivalents	$	252,993		$	385,931
Receivables:
Distribution fund		259,610			50,613
Accrued Interest		(86	)		(71	)
Prepaid expenses and other assets		14,943			14,589
Linen Inventory		149,517			68,190
Furniture Inventory		49,747			54,112


	$	726,724		$	573,364


Liabilities and Participants’ Fund Balance
Accounts payable	$	221,360		$	202,117
Participants’ fund balance		505,364			371,247


	$	726,724		$	573,364

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SADDLEBROOK RENTAL POOL OPERATION

STATEMENTS OF OPERATIONS

(Unaudited)

DISTRIBUTION FUND


	Three months ended March 31,
	2017			2016

Rental pool revenue	$	3,805,618		$	3,636,773


Deductions:
Marketing fee		285,421			272,758
Management fee		475,702			454,597
Travel agent commissions		113,575			88,535
Credit card expense		80,535			71,508
Bad debt expense		25,000			—

		980,233			887,398


Net rental income		2,825,385			2,749,375
Less operator share of net rental income		(1,553,962	)		(1,237,219	)
Other revenues (expenses):
Complimentary room revenues		9,490			16,899
Minor repairs and replacements		(32,419	)		(72,955	)


Amount available for distribution	$	1,531,033		$	1,456,100

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SADDLEBROOK RENTAL POOL OPERATION

STATEMENTS OF CHANGES IN PARTICIPANTS’ FUND BALANCES

(Unaudited)

DISTRIBUTION FUND


	Three months ended March 31,
	2017			2016
Balance at beginning of period	$	—		$	—

Additions:
Amount available for distribution		1,531,033			1,456,100

Reductions:
Amount withheld for maintenance escrow fund		(259,610	)		(218,881	)
Amount accrued or paid to participants		(1,271,423	)		(1,237,219	)


Balance at end of period	$	—		$	—

MAINTENANCE ESCROW FUND


	Three months ended March 31,
	2017			2016
Balance at beginning of period	$	371,247			295,708

Additions:
Amount withheld from distribution fund		259,610			218,881
Unit owner payments		45,983			13,864

Reductions:
Maintenance charges		(93,420	)		(83,947	)
Linen replacement		(78,056	)		—


Balance at end of period	$	505,364		$	444,506

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SADDLEBROOK RENTAL POOL OPERATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 1. Rental Pool Operations and Rental Pool Agreement

Condominium units are provided as rental (hotel) accommodations by their owners under the Rental Pool and Agency Appointment Agreement (the “Agreement”) with Saddlebrook Resorts, Inc. (collectively, the “Rental Pool”). Saddlebrook Resorts, Inc. (“Saddlebrook”) acts as operator of the Rental Pool which provides for the distribution of a percentage of net rental income, as defined, to the owners.

The Saddlebrook Rental Pool Operation consists of two funds: the Rental Pool Income Distribution Fund (“Distribution Fund”) and the Maintenance and Furniture Replacement Escrow Fund (“Maintenance Escrow Fund”). The operations of the Distribution Fund reflect the earnings of the Rental Pool. The Distribution Fund balance sheets reflect amounts due from Saddlebrook for the rental pool distribution payable to participants and amounts due to the Maintenance Escrow fund. The amounts due from Saddlebrook are required to be distributed no later than forty-five days following the end of each calendar quarter. The Maintenance Escrow Fund reflects the accounting for escrowed assets used to maintain unit interiors and replace furniture as it becomes necessary.

Rental pool participants and Saddlebrook share rental revenues according to the provisions of the Agreement. Net Rental Income shared consists of rentals received less a marketing surcharge of 7.5%, a 12.5% management fee, travel agent commissions, credit card expenses and provision for bad debts, if warranted. Saddlebrook receives 45% of Net Rental Income as operator of the Rental Pool. The remaining 55% of Net Rental Income, after adjustments for complimentary room revenues (ten percent of the normal unit rental price paid by Saddlebrook for promotional use of the unit) and certain minor repair and maintenance charges, is available for distribution to the participants and Maintenance Escrow Fund based upon each participant’s respective participation factor (computed using the value of a furnished unit and the number of days it was available to the pool). Quarterly, 45% of Net Rental Income is distributed to participants and 10%, as adjusted for complimentary room revenues and minor interior maintenance and replacement charges, is deposited in an escrow account until a maximum of 20% of the set value of the individual owner’s furniture package has been accumulated. Excess escrow balances are refunded to participants.

Note 2. Summary of Significant Accounting Policies

Basis of Accounting

The accounting records of the funds are maintained on the accrual basis of accounting.

Income Taxes

No federal or state taxes have been reflected in the accompanying financial statements as the tax effect of fund activities accrues to the rental pool participants and Saddlebrook.

- 12 -

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

The Company operates Saddlebrook Resort (the “Resort”) in Wesley Chapel, Florida, which contains condominium units that have been sold to third parties or to affiliates of the Company. The majority of the condominium units are hotel accommodations that participate in a rental-pooling program (the “Rental Pool”) that provides its owners with a percentage distribution of related room revenues minus certain fees and expenses. The remainder of the condominium units participate in a non-pooling rental program, are owner-occupied or are designated as hospitality suites or housing for young athletes independent of the rental programs. Other resort property owned by the Company and its affiliates include golf courses, tennis courts, a spa, restaurants and conference center facilities.

Results of Operations

First quarter 2017 compared to first quarter 2016

The Company’s total revenues increased $78,000, or about 1%, for the three months ended March 31, 2017 compared to the same period in the prior year. Total revenues for the Rental Pool increased $169,000, or 5%. These changes are directly related to an increase in occupancy over the prior period.

Total costs and expenses increased $231,000, or about 2%. Total costs and expenses for the Rental Pool Operation increased $93,000, or about 10%.

The Company’s net income for the quarter decreased in the amount of $158,000 compared to the same period in the prior year. Amounts available for distribution for the Rental Pool Operation increased $75,000 from the comparable period last year.

Impact of Current Economic Conditions

The Company continues to experience increased occupancy rates, when compared to prior periods. Ancillary service revenue is now beginning to show increases when compared to the prior periods as well. The Company believes that businesses have begun to alter

their spending patterns and that this is a result of a turnaround in the economy.

In response to this trend, the Company has increased its sales force to focus more in the area of corporate meetings. The Company continues its marketing efforts toward the social clientele by developing packages designed to target more social guests, including

families. These social packages are being promoted through the Company’s website as well as through travel wholesalers and with emphasis on e-commerce sites. Management has implemented programs and measures to help the Company get back to positive

operating income. These programs and measures include cost control programs, consolidation of restaurant operations and efforts to increase brand awareness and recognition of the Resort.

- 13 -

Liquidity and Capital Resources

Future operating costs and planned expenditures for minor capital additions and improvements are expected to be adequately funded by the Company and its affiliates’ current cash reserves and cash generated by the Resort’s operations.

On December 6, 2015 the Company’s financing agreement with a third party lender was modified to include renewal for the existing principal balance of $4,875,000, along with an advance of an additional $2,000,000. The new term note expires December 6, 2020. At March 31, 2017 $6,434,299 was outstanding under the note. The term note requires monthly principle payments of $29,380 plus interest of 3% over the one month Libor index (3.79% at March 31, 2017). The term note is collateralized by all current and subsequently acquired real and personal property. The term note requires the Company to maintain a Debt Ratio, as defined, of 1.25%. The Company was in default of this covenant as of December 31, 2016; however, the Company received a waiver for this default from its lender. Under the terms of its agreement, the debt service covenant will be re-measured at December 31, 2017. Management believes, based on its expectations that it will be in compliance with the debt covenant at that date; however there can be no assurances that it will be in compliance. Should the Company not be in compliance at December 31, 2017, it will seek a waiver or modification of the covenant. In addition, under the terms of the loan agreement, the Company has certain remedies available to it by which it can cure the default, and it is management’s intent to do so if necessary.

The Company’s ultimate shareholder has the financial ability and intent to continue to fund operations through affiliated companies that are 100% owned by the Company’s ultimate shareholder to the extent required to support the Company’s operations. The Company has loans outstanding to the affiliated companies of approximately $12 million and $10.9 million as of March 31, 2017 and December 31, 2016, respectively. In addition to the shareholders’ financial ability, these affiliated Companies are expected to continue to generate positive cash flows during fiscal year 2017 should additional funding be required to support the Company’s operations.

The Company’s operation of the Resort is not considered to be dependent on any individual or small group of customers, the loss of which would have a material adverse effect on the Company’s business or financial condition.

Seasonality

The Company’s operations are seasonal with the highest volume of revenue generally occurring in the first quarter of each calendar year.

Due to the seasonal business of the Company, the results of operations for the interim period shown in this report are not necessarily indicative of results to be expected for the full fiscal year.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company’s invested cash is subject to changes in market interest rates. Otherwise, the Company does not have significant market risk with respect to foreign currency exchanges or other market rates.

The Company’s term note and its line of credit bear interest at 3.0% over the one month LIBOR index and mature in December 2020.

- 14 -

Item 4. Controls and Procedures

The Company’s management, including the Chief Executive Officer and the Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the disclosure controls and procedures as of March 31, 2017, pursuant to Exchange Act Rule 15d-15. Based upon that evaluation, the Company’s Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2017 in timely alerting them to material information required to be included in the Company’s periodic SEC filings.

The Company’s management, including its Chief Executive Officer and Chief Financial Officer, does not expect that its disclosure controls and procedures over internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must be considered relative to their costs. Because of the inherent limitation in all control systems, no evaluation of controls can provide absolute assurance that all control issues within the Company have been detected.

There were no changes in the Company’s internal controls over financial reporting during the three months ended March 31, 2017 that materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in litigation in the ordinary course of business. In the opinion of the Company’s management, insurance or indemnification from other third parties adequately covers these matters. Accordingly, the effect, if any, of these claims is considered immaterial to the Company’s financial condition and results of operations.

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Item 6. Exhibits

The following exhibits are included in this Form 10-Q:

10.1 - Revolving Line of Credit Agreement dated April 24, 2017

31.1 - Chief Executive Officer Rule 15d-14(a) Certification

31.2 - Chief Financial Officer Rule 15d-14(a) Certification

32.1 - Chief Executive Officer Section 1350 Certification

32.2 - Chief Financial Officer Section 1350 Certification

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

- 16 -

SIGNATURE

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.

SADDLEBROOK RESORTS, INC.

(Registrant)

- 17 -

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company