U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB





|{X} | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|--- | ----------------------------------------------------------------------------------------

For the quarterly period ended March 31,
2001

OR

|{  } | 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 000-02290





|EFFICIENCY LODGE, INC.                                           
|-----------------------------------------------------------------
|(Exact name of small business issuer as specified in its charter)





|Georgia                           | 58-0898219         
|--------------------------------- | -------------------
|(State or other jurisdiction      | (I.R.S. Employer   
|of incorporation or organization) | Identification No.)



|5342 Old Floyd Road, P. O. Box 635, Mableton, Georgia 30126
|-----------------------------------------------------------
|(Address of principal executive offices)                   





|(770) 819-0039                                  
|------------------------------------------------
|(issuer's telephone number, including area code)



Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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      /_/



Shares outstanding of each of the issuer's classes of common equity at March 31, 2001: 216,970 shares of Common Stock, no par value.

Transitional Small Business disclosure Format (check one).

Yes /_/          No     /X/





---

PART I. 
FINANCIAL INFORMATION

Item
1.          Financial
Statements.

Efficiency Lodge, Inc.



CONSOLIDATED BALANCE SHEETS





ASSETS





|                                              |   | March 31,   |   | December 31,
|--------------------------------------------- | - | ----------- | - | ------------
|                                              |   | 2001        |   | 2001        
|                                              |   | (Unaudited) |   |             
|                                              |   |             |   |             
|Property and equipment, net                   | $ | 25,908,648  | $ | 26,169,246  
|Cash                                          |   | 1,282,486   |   | 658,427     
|Other assets                                  |   | 1,853,597   |   | 2,039,150   
|                                              | $ | 29,044,731  | $ | 28,866,823  
|                                              |   |             |   |             
|                                              |   |             |   |             
|LIABILITIES AND STOCKHOLDERS' EQUITY         
|                                              |   |             |   |             
|Mortgage notes payable                        | $ | 28,076,602  | $ | 8,305,021   
|Other liabilities                             |   | 683,050     |   | 562,533     
|                                              |   |             |   |             
|Total liabilities                             |   | 28,759,652  |   | 28,867,554  
|                                              |   |             |   |             
|Stockholders' equity                          |   |             |   |             
|Common stock -- no par value, 7,500,000       |   |             |   |             
|shares authorized; 297,900 and 347,900 shares |   |             |   |             
|issued at March 31, 2001 and December 31,     |   |             |   |             
|2000, respectively                            |   | 240,216     |   | 280,534     
|Accumulated earnings                          |   | 868,199     |   | 1,088,613   
|Other comprehensive gain                      |   | 96,964      |   | 119,000     
|                                              |   | 1,205,379   |   | 1,488,147   
|                                              |   |             |   |             
|Less 80,930 and 130,930 shares of common      |   |             |   |             
|stock in treasury at cost at March 31, 2001   |   |             |   |             
|and December 31, 2000, respectively           |   | (920,300)   |   | (1,488,878) 
|                                              |   | 285,079     |   | (731)       
|                                              |   |             |   |             
|                                              | $ | 29,044,731  | $ | 28,866,823  



The accompanying notes are an integral part of these statements.



2

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Efficiency Lodge, Inc.



CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)



For the three months ended March 31, 2001 and 2000







|                                      |   | 2001      |   | 2000     
|------------------------------------- | - | --------- | - | ---------
|                                      |   |           |   |          
|                                      |   |           |   |          
|Revenues                              | $ | 2,229,959 | $ | 2,022,090
|Operating expenses                    |   | 1,343,713 |   | 1,134,726
|                                      |   |           |   |          
|Operating income                      |   | 886,246   |   | 887,364  
|                                      |   |           |   |          
|Other expense (income)                |   |           |   |          
|Interest expense                      |   | 632,601   |   | 608,613  
|Gain on sale of investments           |   | (200,110) |   | -        
|Other, net                            |   | (44,916)  |   | (8,445)  
|                                      |   | 387,575   |   | 600,168  
|                                      |   |           |   |          
|Earnings before income taxes          |   | 498,671   |   | 287,196  
|                                      |   |           |   |          
|Provision for income taxes            |   | 190,825   |   | 110,000  
|                                      |   |           |   |          
|Net earnings                          | $ | 307,846   | $ | 177,196  
|                                      |   |           |   |          
|Net earnings per common share - basic | $ | 1.42      | $ | 0.96     
|                                      |   |           |   |          
|Weighted average number of common     |   |           |   |          
|shares outstanding                    |   | 216,970   |   | 183,640  







The accompanying notes are an integral part of these statements.



3

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Efficiency Lodge, Inc.



CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)

Three months ended March 31, 2001



OtherSharesOutstanding
Common
Stock
Accumulated
Earnings
Accumulated
Other
Comprehensive
Gain
Treasury
Stock
TotalBalance at December 31, 2000
216,970
$  280,534
$  1,088,613
$      119,000
$(1,488,878)
$    (731)Cancellation of 50,000 shares
    of common stock in treasury
-
(40,318)
(528,260)
-
568,578
-Net earnings for the three
    months
-
-
307,846
-
-
307,846Other comprehensive lossChange in unrealized gain
    on  investments
-
-
-
(22,036)
-
(22,036)Comprehensive earnings
-
-
-
-
-
285,810Balance at March 31, 2001
216,970

$  240,216
$      868,199
$       96,964
$   (920,300)
$ 285,079






The accompanying notes are an integral part of this statement.



4

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Efficiency Lodge, Inc.



CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)



For the three months ended March 31, 2001 and 2000





|                                                    |  | 2001             |  | 2000                  
|--------------------------------------------------- |  | ---------------- |  | ----------------------
|                                                    |  |                  |  |                       
|Increase (decrease) in cash                         |  |                  |  |                       
|                                                    |  |                  |  |                       
|Cash flows from operating activities:               |  |                  |  |                       
|Net earnings                                        |  | $       307,846  |  | $        177,196      
|Adjustments to reconcile net earnings to net        |  |                  |  |                       
|cash provided by operating activities:              |  |                  |  |                       
|Depreciation and amortization                       |  | 292,926          |  | 285,406               
|Gain on sale of fixed assets                        |  | (27,143)         |  | -                     
|Gain on sale of investments                         |  | (200,110)        |  | -                     
|Changes in assets and liabilities:                  |  |                  |  |                       
|Other assets                                        |  | (48,794)         |  | 37,046                
|Other liabilities                                   |  | 134,022          |  | (113,328)             
|                                                    |  |                  |  |                       
|Net cash provided by operating activities           |  | 458,747          |  | 386,320               
|                                                    |  |                  |  |                       
|Cash flows from investing activities:               |  |                  |  |                       
|Payments received on notes receivable               |  | 5,719            |  | -                     
|Proceeds from sale of investments                   |  | 377,933          |  | -                     
|Capital expenditures                                |  | (83,464)         |  | (30,300)              
|Proceeds from sale of fixed assets                  |  | 93,543           |  | -                     
|                                                    |  |                  |  |                       
|Net cash provided by (used in) investing activities |  | 393,731          |  | (30,300)              
|                                                    |  |                  |  |                       
|Cash flows from financing activities:               |  |                  |  |                       
|Payments for purchase of treasury stock             |  | -                |  | (36,794)              
|Principal payments on long-term debt                |  | (228,419)        |  | (142,475)             
|                                                    |  |                  |  |                       
|Net cash used in financing activities               |  | (228,419)        |  | (179,269)             
|                                                    |  |                  |  |                       
|Increase in cash and cash equivalents               |  | 624,059          |  | 176,751               
|                                                    |  |                  |  |                       
|Cash and cash equivalents, beginning of period      |  | 658,427          |  | 237,091               
|                                                    |  |                  |  |                       
|Cash and cash equivalents, end of period            |  | $    1,282,486   |  | $        413,842      
|                                                    |  |                  |  |                       
|Cash paid during the period for interest            |  | $       617,601  |  | $        508,565      
|                                                    |  |                  |  |                       
|Cash paid during the period for income taxes        |  | $         66,433 |  | $                    -

The accompanying notes are an integral part of these statements.

5

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Efficiency Lodge, Inc.



NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



Three months ended March 31, 2001 and 2000





NOTE A -- BASIS OF PREPARATION

The accompanying unaudited interim consolidated financial statements of Efficiency Lodge, Inc. (the
Company
) have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP
) for interim financial statements and with the rules and regulations of the Securities and Exchange Commission.  Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements.  In the opinion
of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The results of operations for the quarter ended March 31, 2001 are not necessarily indicative of the results that may be expected for the full year.  The interim consolidated financial statements should be read in conjunction with the Company's 2000
consolidated financial statements and related notes.



NOTE B -- BASIC EARNINGS PER SHARE

Basic earnings per share is computed using the weighted average number of shares of common stock outstanding.

6

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Item
2.          Managements
Discussion and Analysis

Total assets increased $177,908 from
$28,866,823 at December 31, 2000 to $29,044,731 at March 31, 2001. This increase
was primarily attributable to operating profit for the quarter of $307,846 and
increases in the fair value of investments of $164,570, net of payments on
mortgage notes payable of $228,419 and income tax payments of $66,433.

Revenue increased $207,869 from
$2,022,090 in the first quarter of 2000 to $2,229,959 in the first quarter of
2001. This was primarily due to the Austell lodge, which opened September 1,
2000. Operating expenses increased from $1,134,726 in the first quarter of 2000
to $1,343,713 primarily due to the opening of the Austell lodge and increased
maintenance expenses.

During the first quarter of 2001, the
Company purchased real estate and equipment totaling $83,464 and sold one house
for $93,543.

During the first quarter of 2001 the
Company realized a gain on the sale of investments totaling $200,110. The
majority of this gain was included in unrealized gain on investments at December
31, 2000.

Part II - Other Information

None.



7

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SIGNATURES



In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



EFFICIENCY LODGE, INC.



|                    |                                      
|------------------- | -------------------------------------
|DATE:  May 10, 2001 | By: /s/
W. Ray Barnes                
|                    | W. Ray Barnes                        
|                    | President and Chief Executive Officer
|                    |                                      
|DATE:  May 10, 2001 | By:  /s/
Bonnie Byers                
|                    | Bonnie Byers                         
|                    | Secretary/Treasurer