-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UZqHOxuofHCihYuwkyBjD8geM0BXUqapCE35EYTXiN+HKhXqNI6zUpLEaRGieZUS 35wHU1oMpocatLoAaM18Yw== 0000910680-96-000324.txt : 19961104 0000910680-96-000324.hdr.sgml : 19961104 ACCESSION NUMBER: 0000910680-96-000324 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961101 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN MEDICAL ALERT CORP CENTRAL INDEX KEY: 0000700721 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380] IRS NUMBER: 112571221 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-08635 FILM NUMBER: 96651942 BUSINESS ADDRESS: STREET 1: 3265 LAWSON BLVD CITY: OCEANSIDE STATE: NY ZIP: 11572 BUSINESS PHONE: 5165365850 MAIL ADDRESS: STREET 1: 3265 LAWSON BLVD CITY: OCEANSIDE STATE: NY ZIP: 11572 10QSB 1 THIRD QUARTER FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION 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 September 30, 1996 Commission File Number 1-8635 AMERICAN MEDICAL ALERT CORP. (Exact name of small business issuer as specified in its charter) New York 11-2571221 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 3265 Lawson Boulevard, Oceanside, New York 11572 (Address of principal executive offices) (516) 536-5850 (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 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 [X] No [_] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 5,727,298 shares of $.01 par value common stock as of October 29, 1996. AMERICAN MEDICAL ALERT CORP. INDEX PART I FINANCIAL INFORMATION PAGE Item 1. Financial Statements. Condensed Balance Sheets for September 30, 1996 and December 31, 1995 1 Condensed Statements of Income for the Nine Months Ended September 30, 1996 and 1995 2 Condensed Statements of Income for the Three Months Ended September 30, 1996 and 1995 3 Condensed Statements of Cash Flows for the Nine Months Ended September 30, 1996 and 1995 4 Notes to Condensed Financial Statements 5 Item 2. Management's Discussion and Analysis or Plan 6 of Operation. PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. 7 Item 1. Financial Statements. AMERICAN MEDICAL ALERT CORP. CONDENSED BALANCE SHEETS ASSETS
September 30, 1996 Dec. 31, 1995* (UNAUDITED) ----------- ----------- CURRENT ASSETS: Cash $ 338,566 $ 319,989 Accounts and notes receivable (net of allowance for doubtful accounts of $30,000 in '96 & '95) 1,407,636 1,236,938 Inventory 1,657,604 1,116,810 Prepaid expenses and other current assets 209,983 149,309 Deferred income tax benefit 30,000 54,000 ----------- ----------- Total Current Assets 3,643,789 2,877,046 ----------- ----------- NOTE RECEIVABLE 16,658 -0- ----------- ----------- FIXED ASSETS: (Net of accumulated depreciation and amortization) 2,998,666 2,848,109 OTHER ASSETS 24,142 24,887 ----------- ----------- TOTAL ASSETS $ 6,683,255 $ 5,750,042 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Note Payable Bank $ 300,000 $ -0- Accounts payable 534,733 467,300 Accrued expenses 236,251 214,092 Taxes payable 149,559 -0- Current portion of long-term debt 9,612 7,351 ----------- ----------- Total Current Liabilities 1,230,155 688,743 DEFERRED INCOME TAX LIABILITY 195,000 195,000 NOTE PAYABLE BANK -0- 450,000 LONG-TERM DEBT - LESS CURRENT MATURITIES 14,248 8,949 ----------- ----------- Total Liabilities 1,439,403 1,342,692 ----------- ----------- COMMITMENTS AND CONTINGENT LIABILITIES SHAREHOLDERS' EQUITY Common stock - $.01 par value; authorized - 10,000,000 shares; issued, and outstanding - 5,771,208 shares in 1996 and 5,504,741 shares in 1995 57,712 55,047 Additional paid-in capital 4,230,618 4,088,212 Retained Earnings 1,061,554 270,575 ----------- ----------- 5,349,884 4,413,834 Less 43,910 shares in 1996 & 1,995 in 1995 of treasury stock, at cost (106,032) (6,484) ----------- ----------- Total Shareholders Equity 5,243,852 4,407,350 ----------- ----------- TOTAL Liabilities & Shareholders Equity $ 6,683,255 $ 5,750,042 =========== ===========
See accompanying notes to condensed financial statements. * Derived from audited financial statement 1 AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF INCOME (Unaudited) Nine months Ended September 30, ------------------------------- 1996 1995 ----------- ----------- Revenues: Services $ 4,575,177 $ 3,885,048 Product sales 901,915 668,466 ----------- ----------- 5,477,092 4,553,514 ----------- ----------- Cost and Expenses (Income): Costs related to services 1,526,525 1,303,161 Costs of products sold 623,974 467,192 Selling, general and administrative expenses 1,880,979 1,675,099 Interest expense 33,635 42,510 Other income (1,000) (355) ----------- ----------- 4,064,113 3,487,607 ----------- ----------- Income before provision for income taxes 1,412,979 1,065,907 Provision for income taxes 622,000 443,288 ----------- ----------- NET INCOME $ 790,979 $ 622,619 =========== =========== Net income per share $ .14 $ .11 =========== =========== Weighted average number of common shares outstanding (Note 3) 5,837,120 5,866,058 =========== =========== See accompanying notes to condensed financial statements 2 AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended September 30, -------------------------------- 1996 1995 ----------- ----------- Revenues: Services $ 1,561,149 $ 1,375,717 Product sales 392,927 384,304 ----------- ----------- 1,954,076 1,760,021 ----------- ----------- Cost and Expenses (Income): Costs related to services 514,221 532,828 Costs of products sold 276,928 213,686 Selling, general and administrative expenses 629,808 599,857 Interest expense 8,399 13,114 Other income (-0-) (64) ----------- ----------- 1,429,356 1,359,421 ----------- ----------- Income before provision for income taxes 524,720 400,600 Provision for income taxes 231,000 160,300 ----------- ----------- NET INCOME $ 293,720 $ 240,300 =========== =========== Net income per share $ .05 $ .04 =========== =========== Weighted average number of common shares outstanding (Note 3) 5,921,582 5,961,037 =========== =========== See accompanying notes to condensed financial statements 3 AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENT OF CASH FLOWS (Unaudited) Nine months Ended June 30, -------------------------- 1996 1995 ---- ---- Cash Flows From Operating Activities: Net Income $ 790,979 $ 622,619 Adjustments to reconcile net income to net cash provided by operating activities Provision for deferred income taxes 24,000 121,000 Depreciation and amortization 468,864 375,389 Change in Assets and Liabilities: (Increase) in receivables (187,356) (142,465) (Increase) in inventory (540,794) (95,699) (Increase) in prepaid expenses and other assets (59,929) (67,367) Increase (Decrease) in accounts payable, accrued expenses and taxes payable 239,151 (49,738) --------- --------- Net Cash Provided by Operating Activities 734,915 763,739 --------- --------- Cash Flows from Investing Activities: Expenditures for fixed assets (619,421) (592,604) --------- --------- Net Cash Used In Investing Activities (619,421) (592,604) --------- --------- Cash Flows from Financing Activities: Repayment of bank borrowings (150,000) (100,000) Net (Repayment of) loans payable 7,560 (3,723) Net Proceeds upon exercise of stock options 45,523 18,978 --------- --------- Net Cash Used In Financing Activities (96,917) (84,745) --------- --------- Net (Decrease) increase in Cash 18,577 86,390 Cash, Beginning of Period 319,989 157,435 --------- --------- Cash, End of Period $ 338,566 $ 243,825 ========= ========= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: CASH PAID DURING THE PERIOD FOR INTEREST $ 33,635 $ 42,510 ========= ========= CASH PAID DURING THE PERIOD FOR INCOME TAXES $ 400,000 $ 323,584 ========= ========= See accompanying notes to condensed financial statements 4 AMERICAN MEDICAL ALERT CORP. Notes to Condensed Financial Statements (Unaudited) 1. General: These financial statements should be read in conjunction with the notes to the financial statements contained in the latest annual report for the year ended December 31, 1995. 2. Results of Operations: In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position as of September 30, 1996, the condensed statements of income for the three and nine month periods ended September 30, 1996 and 1995, and the statements of cash flows for the nine months ended September 30, 1996 and 1995. The condensed statements of income for the nine and three month periods ended September 30, 1996 are not necessarily indicative of the results to be expected for the full year. 3. Income Per Share: Income per share is computed using the weighted average number of common shares and common share equivalents outstanding during each period. In 1996 and 1995, the dilutive effect of outstanding options and warrants was included in the weighted average number of common shares. 5 Item 2. Management's Discussion and Analysis or Plan of Operation. The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of the Company's results of operations and financial condition. The discussion should be read in conjunction with the consolidated financial statements contained in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1995. Liquidity and Capital Resources - ------------------------------- On December 1, 1995, the Company renegotiated its $1,500,000 credit note (based upon 75% of eligible accounts receivable and 25% of inventory, as defined) and extended it until April 30, 1997. As of October 25, 1996, $300,000 was outstanding under this note. The Company's working capital on September 30, 1996 was $2,413,634. During 1996 the Company anticipates that it will make capital investments of approximately $1,000,000 of which approximately $619,000 has been expended through September 30, 1996 for the purchase and production of additional systems which the Company intends to rent to its customers. The Company believes that its present cash and working capital position, its borrowing availability and future anticipated income will be sufficient to meet its cash and working capital needs for the foreseeable future. Results of Operations - --------------------- Revenue from services increased $690,129 for the nine months ended September 30, 1996 as compared to the same period in 1995, an increase of 18%. This increase resulted from expansion of the Company's customer base for monthly monitoring and leasing services. Costs related to services for the nine months ended September 30, 1996 and 1995 were 33% and 34%, respectively. Revenue from services increased $185,432 for the three months ended September 30, 1996 as compared to the same period in 1995, an increase of 13%. This increase resulted from expansion of the Company's customer base for monthly monitoring and leasing services. Costs related to services for the three months ended September 30, 1996 and 1995 were 33% and 39%, respectively. Revenue from product sales increased $233,449 for the nine months ended September 30, 1996 as compared to the same period in 1995, an increase of 35%. This increase was primarily due to the increase in sales to distributors and retirement communities. The gross profit on product sales for the nine months ended September 30, 1996 and 1995 was 31% and 30%, respectively. Revenue from product sales increased $8,623 for the three months ended September 30, 1996 as compared to the same period in 1995, an increase of 2%. This increase was primarily due to the increase in sales to distributors and retirement communities. The gross profit on product sales for 6 the three months ended September 30, 1996 and 1995 was 30% and 44%, respectively. Product sales gross profit decreased for the quarter as a result of competitive pricing for distributors and retirement communities. Interest expense for the nine months ended September 30, 1996 and 1995 was $33,635 and $42,510, respectively. Selling, general and administrative expenses as compared as a percentage of total revenues for the nine months ended September 30, 1996 and 1995 were 34% and 37% respectively. Interest expense for the three months ended September 30, 1996 and 1995 was $8,399 and $13,114, respectively. Selling, general and administrative expenses as compared as a percentage of total revenues for the three months ended September 30, 1996 and 1995 were 32% and 34% respectively. PART II - OTHER INFORMATION Item 6. Exhibit and Reports on Form 8-K. (a) Exhibits: 27. Financial Data Schedule (b) Reports on Form 8-K: No reports on Form 8-K were filed during the quarter for which this report is filed. 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AMERICAN MEDICAL ALERT CORP. By: /S/ HOWARD M. SIEGEL -------------------------------------- Howard M. Siegel President & Chief Operating Officer By: /S/ COREY M. ARONIN -------------------------------------- Corey M. Aronin Chief Financial Officer Dated: October 29, 1996 8 EX-27 2 FDS -- QUARTER ENDED SEPTEMBER 30, 1996
5 0000700721 AMERICAN MEDICAL ALERT CORP. 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 338,566 0 1,437,636 30,000 1,657,604 3,643,789 2,998,666 0 6,683,255 1,230,155 14,248 0 0 57,712 5,186,140 6,683,255 901,915 5,477,092 623,974 4,064,112 0 0 33,635 1,412,979 622,000 0 0 0 0 790,979 .14 0
-----END PRIVACY-ENHANCED MESSAGE-----