-----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, KIQMvz3WmPeJXt3klQXPFSsgxfBJwYJ0/p97D3w6jJwYm1y3H9JxnH/x/GIc+G+R 4DLxJadhSEEWfAwm3hX6ow== 0000910680-95-000145.txt : 19951119 0000910680-95-000145.hdr.sgml : 19951119 ACCESSION NUMBER: 0000910680-95-000145 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: AMEX 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: 95592769 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 FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1995 Commission File Number 1-8635 AMERICAN MEDICAL ALERT CORP. (Exact Name of Registrant 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) (Zip Code) (516) 536-5850 (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 X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 5,504,074 shares of $.01 par value common stock as of November 13 , 1995. AMERICAN MEDICAL ALERT CORP. INDEX PAGE Part I Condensed Balance Sheets for September 30, 1995 and December 31, 1994 1 Condensed Statements of Income for the Nine Months Ended September 30, 1995 and 1994 2 Condensed Statements of Income for the Three Months Ended September 30, 1995 and 1994 3 Condensed Statements of Cash Flows for the Nine Months Ended September 30, 1995 and 1994 4-5 Notes to Condensed Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 7-8 Part II Other Information 9 AMERICAN MEDICAL ALERT CORP. CONDENSED BALANCE SHEETS ASSETS
Sept.30, 1995 Dec. 31, 1994* (Unaudited) CURRENT ASSETS: Cash $243,825 $157,435 Accounts and notes receivable (net of allowance for doubtful accounts of $30,000 in '95 & '94) 1,439,923 1,281,067 Inventory 1,180,084 1,084,385 Prepaid expenses and other current assets 104,904 42,744 Deferred income tax benefit 52,000 173,000 Total Current Assets 3,020,736 2,738,631 --------- --------- NOTES RECEIVABLE -0- 16,391 FIXED ASSETS: (Net of accumulated depreciation and amortization) 2,424,097 2,206,882 OTHER ASSETS 26,696 21,489 --------- --------- TOTAL $5,471,529 $4,983,393 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable -bank $450,000 $550,000 Accounts payable 346,473 455,369 Accrued expenses 231,378 170,924 Taxes payable 57,000 58,296 Current portion of long-term debt 8,133 9,162 --------- --------- Total Current Liabilities 1,092,984 1,243,751 DEFERRED INCOME TAX LIABILITY 80,000 80,000 LONG-TERM DEBT -LESS CURRENT MATURITIES 10,582 13,276 --------- --------- Total Liabilities 1,183,566 1,337,027 COMMITMENTS AND CONTINGENT LIABILITIES SHAREHOLDERS' EQUITY Common stock -$.01 par value; authorized - 10,000,000 shares; issued, and outstanding - 5,504,074 shares in 1995 and 5,462,712 shares in 1994. 55,040 54,627 Additional paid-in capital 4,087,949 4,069,384 Retain Earnings (Deficit) 151,458 (471,161) --------- --------- 4,294,447 3,652,850 Less 1,995 shares of treasury stock, at cost (6,484) (6,484) 4,287,963 3,646,366 --------- --------- TOTAL $5,471,529 $4,983,393 ========= =========
See accompanying notes to condensed financial statements. * Derived from audited financial statements -1- AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF INCOME (Unaudited)
Nine Months Ended September 30, 1995 1994 ---- ---- Revenues: Services $3,885,048 $3,302,925 Product sales 668,466 588,035 --------- --------- 4,553,514 3,890,960 --------- --------- Cost and Expenses (Income): Costs related to services 1,303,161 1,120,791 Costs of products sold 467,192 361,130 Selling, general and administrative expenses 1,675,099 1,445,630 Interest expense 42,510 31,463 Other income (355) (2,648) --------- --------- 3,487,607 2,956,366 --------- --------- Income before provision for income taxes. 1,065,907 934,594 Provision for income taxes 443,288 374,019 --------- --------- NET INCOME $622,619 $560,575 ========= ========= Net income per share $0.11 $0.10 ========= ========= Weighted average number of common shares outstanding (Note 3) 5,866,058 5,784,618 ========= =========
See accompanying notes to condensed financial statements -2- AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF INCOME (Unaudited)
Three months Ended September 30, 1995 1994 ---- ---- Revenues: Services $1,375,717 $1,206,891 Product sales 384,304 194,396 --------- --------- 1,760,021 1,401,287 --------- --------- Cost and Expenses (Income): Costs related to services 532,828 374,503 Costs of products sold 213,686 68,292 Selling, general and administrative expenses 599,857 456,812 Interest expense 13,114 14,626 Other income (64) (172) --------- --------- 1,359,421 914,061 --------- --------- Income before provision for income taxes. 400,600 487,226 Provision for income taxes 160,300 194,366 --------- --------- NET INCOME $240,300 $292,860 ========= ========= Net income per share $0.04 $0.05 ========= ========= Weighted average number of common shares outstanding (Note 3) 5,961,037 5,748,901 ========= =========
See accompanying notes to condensed financial statements -3- AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENT OF CASH FLOWS (Unaudited)
Nine Months Ended September 30, 1995 1994 ---- ---- Cash Flows From Operating Activities: Net Income $622,619 $560,575 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 375,389 304,438 Cash savings/charge equivalent to tax benefit resulting from utilization of operating loss carry forwards 121,000 307,000 Issuance of common stock in connection with consulting services performed -0- 14,844 Amortization of deferred charges -0- 730 Change in Assets and Liabilities: (Increase) in receivables (142,465) (318,492) (Increase) decrease in inventory (95,699) 202,090 (Increase) in prepaid expenses and other assets (67,367) ( 51,239) (Decrease) increase in accounts payable, accrued expenses and taxes payable (49,738) 292,249 ---------- ---------- Net Cash Provided by Operating Activities 763,739 1,312,195 ---------- ---------- Cash Flows from Investing Activities: Expenditures for fixed assets (592,604) (1,730,073) ---------- ---------- Net Cash (Used In) Investing Activities (592,604) (1,730,073) ---------- ---------- Cash Flows from Financing Activities: (Repayments of) net proceeds from bank borrowings (100,000) 300,000 Change in capital lease obligation -0- 4,240 Repayment of long term debt (3,723) (5,014) Proceeds upon exercise of stock options 18,978 46,277 ---------- ---------- Net Cash (Used In) Provided by Financing Activities (84,745) 345,503 ---------- ----------
See accompanying notes to condensed financial statements. -4- AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF CASH FLOWS (Continued) (Unaudited)
Nine Months Ended September 30, 1995 1994 ---- ---- Net Increase (Decrease)in Cash $86,390 $(72,375) Cash, Beginning of Period 157,435 180,276 ---------- ---------- Cash, End of Period $243,825 $107,901 ========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: CASH PAID DURING THE PERIOD FOR INTEREST $42,510 $31,463 ========== ========== CASH PAID DURING THE PERIOD FOR INCOME TAXES $323,584 $23,020 ========== ==========
See accompanying notes to condensed financial statements -5- 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, 1994. 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, 1995, the condensed statements of income for the nine and three month periods ended September 30, 1995 and 1994, and the statements of cash flows for the nine months ended September 30, 1995 and 1994. The condensed statements of income for the nine and three month period ended September 30, 1995 are not necessarily indicative of the results to be expected for the full year. 3. Income Per Share: Income Per Share -Income per share is computed using the weighted average number of shares issued and committed for issuance during each period. In 1995 and 1994, the dilutive effect of outstanding options and warrants was included in the weighted average number of common shares. -6- AMERICAN MEDICAL ALERT CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (for the Quarter Ended September 30, 1995) LIQUIDITY AND CAPITAL RESOURCES On February 16, 1994, the Company renegotiated its existing credit facility and an amended revolving credit note was issued for $1,500,000 due July 31, 1995. Effective October 31, 1995, the note was extended until November 30, 1995 of which $450,000 is currently outstanding. Currently the Company is negotiating this existing credit agreement. The Company's working capital on September 30, 1995 was $1,927,752. As of September 30, 1995, during the next twelve months the Company anticipates that it will make capital expenditures of approximately $2,000,000 for the purchase of additional systems which the Company intends to rent to what it believes is its expanding customer base. The Company believes that its present cash and working capital position, its borrowing availability and future anticipated income from operations will be sufficient to meet its cash and working capital needs for the foreseeable future. RESULTS OF OPERATIONS Revenue from services increased $582,123 for the nine months ended September 30, 1995 as compared to the same period in 1994, an increase of 18%. These increases 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, 1995 and 1994 were 34% and 34%, respectively. Revenue from services increased $168,826 for the three months ended September 30, 1995 as compared to the same period in 1994, an increase of 14%. These increases 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, 1995 and 1994 were 39% and 32%, respectively. The increase in costs was due to a write off of unrecoverable and unrepairable units. Revenue from product sales increased $80,431 for the nine months ended September 30, 1995 as compared to the same period in 1994, an increase of 14%. This increase was primarily due to an increase in sales to distributors and retirement communities. The gross profit percentage on product sales for the nine months ended September 30, 1995 and 1994 was 30% and 38% respectively. -7- Revenue from product sales increased $189,908 for the three months ended September 30, 1995 as compared to the same period in 1994, an increase of 98%. This increase was primarily due to the increase in sales to distributors and retirement communities. The gross profit percentage on product sales for the three months ended September 30, 1995 and 1994 was 44% and 65%, respectively. Interest expense for the nine months ended September 30, 1995 and 1994 was $42,510 and $31,463, respectively. The increase in interest expense in 1995 was due to the increase of borrowings from a bank. This increase in indebtedness is directly attributable to the increased demand for rental of the VOICE OF HELP(R). Interest expense for the three months ended September 30, 1995 and 1994 was $13,114 and $14,626, respectively. Selling, general and administrative expenses as compared as a percentage of total revenues for the nine months ended September 30, 1995 and 1994 were 37% and 37%, respectively. Selling, general and administrative expenses as compared as a percentage of total revenues for the three months ended September 30, 1995 and 1994 were 34% and 33% respectively. This increase was due to the opening of our Illinois office in the 3rd quarter. This effected costs by $53,045 or one cent per share for the three months ended September 30, 1995. Also attributing to the increase in Selling, general and administrative expense was the continued efforts by our Lobbyist and greater marketing endeavors. OUTLOOK The Company's management strategy has remained committed to serving the needs of its customer base consisting of funded programs, long term care facilities, home healthcare providers, developers of retirement communities and the private sector. In November 1993, New York City initiated its program to provide the VOICE OF HELP(R) System to a segment of recipients served by the Home Attendant Care Program. Medicaid patients will now be assessed to determine if they meet the criteria to receive the VOICE OF HELP(R) System. In preparation for the increased demand from New York City, the Company made substantial capital improvements to its facilities in Queens and Oceanside, New York, while establishing several new management positions. The Company will continue to experience higher SG&A costs through first quarter 1996 associated with its Illinois Office until revenue growth is recognized thereafter. Continued strength in the construction and remodeling of multi-housing facilities helped maintain a strong demand for the Company's products. -8- 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: On August 23, 1995, the Company filed a Form 8-K to report a change in its certifying accountants (Item 4 of Form 8-K). On August 31, 1995, the Company filed an amendment to the Form 8-K for all purpose of filing the letter from the Company's former accountants Deloitte & Touche LLP stating that it agreed with the statement made by the Company, as required by Item 304 of Regulation S-B. -9- 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 (Chief Financial & Accounting Officer) Dated: November 13, 1995 EX-27 2
5 0000700721 AMERICAN MEDICAL ALERT CORP. 9-MOS DEC-31-1994 SEP-30-1995 243,825 0 1,469,923 30,000 1,180,084 3,020,736 2,424,097 0 5,471,529 1,092,984 0 55,040 0 0 4,087,949 5,471,529 0 4,553,514 0 3,445,097 0 0 42,510 1,065,907 443,288 0 0 0 0 622,619 0.11 0
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