-----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, CeiVU86U+gIIsPWy2h2AjHmPfXIB5L5/+4FMtI5J/DAxINxgawKfxMFNQfNGrwrG cRyue8KNlO9l6czLChpAzQ== 0000910680-97-000160.txt : 19970514 0000910680-97-000160.hdr.sgml : 19970514 ACCESSION NUMBER: 0000910680-97-000160 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970513 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: 97602759 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 FOR QUARTER ENDED MARCH 31, 1997 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 March 31, 1997 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: 5,832,814 shares of $.01 par value common stock as of May 13, 1997. AMERICAN MEDICAL ALERT CORP. INDEX PAGE Part I Financial Information Condensed Balance Sheets for March 31, 1997 and December 31, 1996 1 Condensed Statements of Income for the Three Months Ended March 31, 1997 and 1996 2 Condensed Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996 3 - 4 Notes to Condensed Financial Statements 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Part II Other Information 7 Item 1. Financial Statements. -------------------- AMERICAN MEDICAL ALERT CORP. CONDENSED BALANCE SHEETS
ASSETS March 31, 1997 Dec. 31, 1996* (Unaudited) ----------- -------------- CURRENT ASSETS: Cash $ 391,402 $ 301,013 Accounts and notes receivable (net of allowance for doubtful accounts of $30,000 in '97 & '96) 1,329,606 1,327,799 Inventory 1,161,296 1,171,021 Prepaid expenses and other current assets 98,192 137,247 Deferred income tax benefit 54,000 54,000 ------------ ------------ Total Current Assets 3,034,496 2,991,080 ------------ ------------ INVENTORY OF MEDICAL DEVICES HELD FOR LEASE - AT COST 637,000 637,000 ------------ ------------ NOTES RECEIVABLE 15,241 15,956 ------------ ------------ FIXED ASSETS: (Net of accumulated depreciation and amortization) 3,126,537 3,115,110 ------------ ------------ OTHER ASSETS 25,367 24,868 ------------ ------------ TOTAL ASSETS $ 6,838,641 $ 6,784,014 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 101,240 $ 192,707 Accrued expenses 232,042 311,954 Taxes payable 46,737 16,464 Current portion of long-term debt 9,458 9,182 ------------ ------------ Total Current Liabilities 389,477 530,307 DEFERRED INCOME TAX LIABILITY 258,000 258,000 NOTE PAYABLE BANK 450,000 450,000 LONG-TERM DEBT - LESS CURRENT MATURITIES 9,379 11,849 ------------ ------------ Total Liabilities 1,106,856 1,250,156 ------------ ------------ COMMITMENTS AND CONTINGENT LIABILITIES SHAREHOLDERS' EQUITY Common stock - $.01 par value; authorized - 10,000,000 shares; issued - 5,852,589 shares in 1997 and 5,843,246 shares in 1996 58,525 58,432 Additional paid-in capital 4,414,478 4,391,990 Retained Earnings 1,364,814 1,189,468 ------------ ------------ 5,837,817 5,639,890 Less 43,910 shares in 1997 & 1996 of treasury stock, at cost (106,032) (106,032) ------------ ------------ Total Shareholders' Equity 5,731,785 5,533,858 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,838,641 $ 6,784,014 ============ ============ See accompanying notes to condensed financial statements. * Derived from audited financial statements.
1 AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF INCOME (Unaudited)
Three months Ended March 31, 1997 1996 ---- ---- Revenues: Services $ 1,615,765 $ 1,479,256 Product sales 114,575 171,890 ------------ ------------ 1,730,340 1,651,146 ------------ ------------ Costs and Expenses (Income): Costs related to services 591,292 474,713 Costs of products sold 107,399 110,451 Selling, general and administrative expenses 704,819 645,796 Interest expense 12,830 15,111 Other income (346) -0- ------------ ------------ 1,415,994 1,246,071 ------------ ------------ Income before provision for income taxes 314,346 405,075 Provision for income taxes 139,000 178,000 ------------ ------------ NET INCOME $ 175,346 $ 227,075 ============ ------------ Net income per share $ .03 $ .04 ------------ ------------ Weighted average number of common shares outstanding (Note 3) 5,900,101 5,742,788 ============ ============ See accompanying notes to condensed financial statements.
2 AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended March 31, 1997 1996 ---- ---- Cash Flows From Operating Activities: Net Income $ 175,346 $ 227,075 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 171,144 148,773 Loss on unrecovered leased medical equipment 22,246 -0- Change in Assets and Liabilities: (Increase) in receivables (1,092) (11,094) Decrease (Increase) in inventory 9,725 (178,552) (Increase) Decrease in prepaid expenses and other assets 38,556 120,582 (Decrease) in accounts payable, accrued expenses and taxes payable 141,106 (137,312) ------------ ----------- Net Cash Provided by Operating Activities 274,819 169,472 ------------ ----------- Cash Flows from Investing Activities: Expenditures for fixed asset (204,817) (233,797) ------------ ----------- Net Cash (Used In) Investing Activities (204,817) (233,797) ------------ ----------- Cash Flows from Financing Activities: Repayment of loans payable ( 2,194) ( 1,839) Net Proceeds upon exercise of stock options 22,581 3,741 ------------ ----------- Net Cash Provided by Financing Activities 20,387 1,902 ------------ ----------- See accompanying notes to condensed financial statements.
3 AMERICAN MEDICAL ALERT CORP. CONDENSED STATEMENTS OF CASH FLOWS (Continued) (Unaudited)
Three Months Ended March 31, ---------------------------- 1997 1996 ---- ---- Net Increase (Decrease) in Cash $ 90,389 $ (62,423) Cash, Beginning of Period 301,013 319,989 ----------- ----------- Cash, End of Period $ 391,402 $ 257,566 =========== =========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: CASH PAID DURING THE PERIOD FOR INTEREST $ 12,830 $ 15,111 =========== =========== CASH PAID DURING THE PERIOD FOR INCOME TAXES $ 108,727 $ 60,134 =========== ===========
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 financial statements and notes thereto for the year ended December 31, 1996 included in the Company's Annual Report on Form 10-KSB. 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 March 31, 1997, and the results of operations and of cash flows for the three months ended March 31, 1997 and 1996. The accounting policies used in preparing these financial statements are the same as those described in the December 31, 1996 financial statements. The results of operations for the three months ended March 31, 1997 are not necessarily indicative of the results to be expected for any other interim period or for the full year. 3. Income Per Share: In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS") No.128, "Earnings per Share," which changes the methodology of calculating earnings per share. SFAS No.128 requires the disclosure of diluted earnings per share regardless of its difference from basic earnings per share. The company plans to adopt SFAS No. 128 in December 1997. Early adoption is not permitted. Had the company adopted SFAS No. 128 as of March 31, 1997, the related per share disclosure for both basic and diluted earnings per share would have been $ .03 for the three months ended March 31, 1997 and $ .05 and $ .04 for the same period for 1996. 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. ------------------------------------------------------------------------ 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 latest Annual Report dated December 31, 1996. This discussion contains forward-looking statements which, in addition to assuming a continuation of the degree and timing of customer utilization and rate of renewals of contracts with the Company at historical levels, are subject to a number of known and unknown risks that, in addition to general economic, competitive and other business conditions, could cause actual results, performance and achievements to differ materially from those described or implied in the forward-looking statements. Liquidity and Capital Resources - ------------------------------- On March 27, 1997, 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, 1998. As of May 13, 1997, $350,000 was outstanding under this note. The Company's working capital on March 31, 1997 was $ 2,645,019. During 1997 the Company anticipates that it will make capital investments of approximately $1,000,000 of which approximately $186,000 has been expended through March 31, 1997 for the purchase and production of additional systems which the Company intends to rent. As a result, the Company believes that its present cash and working capital position is sufficient in order to meet its financial requirements for at least the ensuing twelve months. Results of Operations - --------------------- Revenue from services increased $136,509 for the three months ended March 31, 1997 as compared to the same period in 1996, an increase of 9%. 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 March 31, 1997 and 1996 were 37% and 32%, respectively. The increase in costs was due to a write off of unrecoverable units and reserves for repairs. Revenue from product sales decreased $57,315 for the three months ended March 31, 1997 as compared to the same period in 1996, a decrease of 33%. This decrease was primarily due to the decrease in sales to distributors and retirement communities. The gross profit on product sales for the three months ended March 31, 1997 and 1996 was 6% and 36%, respectively. Gross profit declined as a result of increased fixed production costs. Interest expense for the three months ended March 31, 1997 and 1996 was $12,830 and $15,111, respectively. Selling, general and administrative expenses as compared as a percentage of total revenues for the three months ended March 31, 1997 and 1996 were 41% and 39% respectively. The increase in costs in 1997 were due to expansion of the Illinois office and the growth of the Company's infrastructure. 6 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. 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. Dated: May 13, 1997 By: /s/ Howard M. Siegel ------------------------------ Howard M. Siegel President & Chief Operating Officer By: /s/ Corey M. Aronin ------------------------------ Corey M. Aronin Chief Financial Officer EX-27 2 FDS -- QUARTER ENDED 3/31/97
5 0000700721 AMERICAN MEDICAL ALERT CORP. 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 391,402 0 1,374,847 30,000 1,798,296 3,034,496 3,126,537 0 6,838,641 389,477 468,837 0 0 58,525 5,673,260 6,891,904 114,575 1,730,340 107,399 1,415,994 0 0 12,830 314,346 139,000 0 0 0 0 175,346 .03 .03
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