<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
This amendment is being submitted to add a Financial Data Statement (EX-27)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
Commission file number 0-28092
Medical Information Technology, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Massachusetts
(State or Other Jurisdiction of Incorporation or Organization)
04-2455639
(I.R.S. Employer Identification No.)
Meditech Circle, Westwood, MA
(Address of Principal Executive Offices)
02090
(Zip Code)
617-821-3000
(Registrant's Telephone Number)
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 _
The number of shares of Common Stock, $.25 par value, outstanding at July 31,
1996 was 15,822,965
<PAGE> 2
Index to Form 10-Q
Part I - Financial Information
Item 1 - Financial Statements
Balance Sheet - December 31, 1995 and June 30, 1996 Page 3
Statement of Income for the Second Quarters and Six Months
ended June 30, 1995 and 1996 Page 4
Statement of Shareholders' Investment for the Six Months
ended June 30, 1995 and 1996 Page 4
Statement of Cash Flow for the Six Months ended June 30,
1995 and 1996 Page 5
Notes to Financial Statements Page 6
Item 2 - Management's Discussion and Analysis of Financial
Condition and Operating Results Page 7
Part II - Other Information
Item 4 - Submission of Matters to a Vote of Shareholders Page 9
Item 6 - Exhibits and Reports on Form 8-K Page 9
Signatures Page 9
<PAGE> 3
Part I - Financial Information
Item 1 Financial Statements
<TABLE>
Balance Sheet (000 omitted)
<CAPTION>
Dec 31, 1995 Jun 30, 1996
<S> <C> <C>
Current Assets:
Cash and equivalents 6,512 6,962
Marketable securities 54,072 56,083
Accounts receivable less reserve 20,286 20,424
Total current 80,870 83,469
Property, Plant And Equipment:
Land and improvements 20,500 20,404
Building and improvements 98,825 98,287
Computer equipment 8,571 9,562
Office furniture and equipment 10,533 12,129
Accumulated depreciation (23,811) (25,568)
Net property, plant and equipment 114,618 114,814
Investments 2,511 2,511
Total 197,999 200,794
Current Liabilities:
Current maturities of note payable 12,000 12,000
Accounts payable 321 1,879
Accrued taxes 1,688 663
Accrued expenses 11,401 8,958
Customer deposits 7,887 9,168
Total current 33,297 32,668
Note Payable To A Bank 26,000 20,000
Deferred Federal And State Income Taxes 874 1.724
Shareholders' Investment:
Common stock, $.25 par value,
Authorized 17,000,000 shares,
Issued and outstanding 15,831,402
in 1995 and 15,938,365 in 1996 3,958 3,984
Additional paid-in capital 5,221 7,334
Retained earnings 128,649 137,507
Treasury Stock, 115,400 shares (2,423)
Total shareholders' investment 137,828 146,402
Total 197,999 200,794
</TABLE>
<PAGE> 4
<TABLE>
Statement Of Income (000 omitted)
<CAPTION>
3 Months Ended June 30 6 Months Ended June 30
1995 1996 1995 1996
<S> <C> <C> <C> <C>
Revenue:
Software products 23,481 26,058 46,065 51,532
Software services 11,023 12,774 21,592 25,120
Other Revenue 955 1,477 1,767 2,500
Total Revenues 35,459 40,309 69,424 79,152
Expenses:
Operating,development 13,074 15,065 25,251 29,622
Selling, G & A 7,988 9,081 15,612 17,792
Total Expenses 21,062 24,146 40,863 47,414
Income From Operations 14,397 16,163 25,561 31,738
Other Income 1,731 3,425 3,808 5,228
Other Expense 1,433 1,988 2,541 3,212
Income Before Taxes 14,695 17,600 29,828 33,754
Provision For Taxes:
State 912 1,682 1,879 3,148
Federal 4,564 5,686 9,345 10,629
Net Income 9,219 10,232 18,604 19,977
Earnings/share $0.58 $0.64 $1.18 $1.26
</TABLE>
<TABLE>
Statement Of Shareholders' Investment (000 omitted)
<CAPTION>
6 Months Ended 6 Months Ended
June 30, 1995 June 30, 1996
<S> <C> <C>
Shareholders' Investment at beginning 117,749 137,828
Net Income 18,604 19,997
Sale of Common Stock 1,952 2,139
Purchase of Treasury Stock (2,423)
Dividends Paid (9,761) (11,119)
Shareholders' Investment at end 128,544 146,402
</TABLE>
<PAGE> 5
<TABLE>
Statement Of Cash Flow (000 omitted)
<CAPTION>
6 Months Ended 6 Months Ended
June 30, 1995 June 30, 1996
<S> <C> <C>
Cash Flow from Operations:
Net income 18,604 19,977
Depreciation 2,122 3,706
Change in accounts receivable 2,001 (138)
Change in accounts payable 1,259 1,558
Change in accrued expenses (4,132) (3,468)
Change in customer deposits (2,379) 1,281
Change in deferred taxes 850
Net cash from operations 17,475 23,136
Cash Flow from Investing:
Purchase of property, plant
and equipment (61,760) (3,272)
Purchase of marketable securities (991) (6,763)
Proceeds from investment liquidation 394 4,752
Net cash used by investing (62,357) (5,283)
Cash Flow from Financing:
Proceeds from bank note 50,000
Payment of bank note (6,000) (6,000)
Proceeds from sale of common stock 1,952 2,139
Purchase of treasury stock, net (2,423)
Dividends paid (9,761) (11,119)
Net cash from (used in) financing 36,191 (17,403)
Net (Decrease) Increase in Cash
and Equivalents (8,691) 450
Cash and Equivalents at beginning
of period 12,907 6,512
Cash and Equivalents at end of period 4,216 6,962
</TABLE>
<PAGE> 6
Notes To Financial Statements (Unaudited)
1. The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto for the year ended December 31, 1995 included in
the Company's Form 10 filed in March 1996. The accompanying financial
statements have not been examined by independent accountants in accordance with
generally accepted auditing standards, but in the opinion of management such
financial statements include all adjustments necessary to summarize fairly the
Company's financial position and results of operation.
2. On June 3, 1996. the Company sold its Cambridge facility. The Company
received net cash proceeds of $1.6 million for the sale. The gain on the sale
was not material.
3. The earnings per share calculation for the Three Months and Six Months ended
June 30, 1995 and 1996 is as follows:
<TABLE>
Earnings per Share Calculations (in thousands where applicable)
<CAPTION>
3 Months Ended June 30 6 Months Ended June 30
1995 1996 1995 1996
<S> <C> <C> <C> <C>
Net Income 9,219 10,232 18,604 19,977
Average number of
common shares 15,763 15,903 15,763 15,903
Earnings per share $0.58 $0.64 $1.18 $1.26
</TABLE>
The average number of common shares outstanding during the period reflects the
new issuance of 114,858 shares on February 28, 1995 and 106,963 shares on
February 29, 1996 and the repurchase of 230,400 shares and the resale of
115,000 treasury shares during the last week of June 1996.
<PAGE> 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operation
<TABLE>
Comparison of 2nd Quarter 1996 to 2nd Quarter 1995
(in thousands where applicable)
<CAPTION>
1995 1996 Change
<S> <C> <C> <C>
Revenues 35,459 40,309 14%
Operating income 14,397 16,163 12%
Net income 9,219 10,232 11%
Earnings per common share $0.58 $0.64 12%
Cash dividends per common share $0.31 $0.35 13%
</TABLE>
Revenues increased by $4.9 million or 14% due to increased orders received from
both existing and new customers.
Expenses increased by $3.1 million or 15% primarily due to a corresponding 15%
increase in staff levels and related costs to accommodate increased orders
received.
The Company's effective tax rate increased from 37% to 42%. This differential
is the result of an investment tax credit in 1995 on real property purchased
that year, coupled with higher non-deductible expenses, for tax purposes,
incurred during the second quarter of 1996.
We note that Operating and Net Income increased approximately in tandem, by 12%
and 11% respectively, for the second quarter as a result of several disparate
non-recurring events. During 1996 Other Income increased, due primarily to the
one-time gain from the sale of our Cambridge real property, and tax expenses
increased as a result of higher non-deductible expenses, while 1995's tax
expenses were proportionately lower as a result of an investment tax credit on
real property purchased. The effect of 1995's second quarter lower tax was
offset by 1996's higher non-operating taxable income.
<TABLE>
Comparison of 1st Six Months 1996 to 1st Six Months 1995
(in thousands where applicable)
<CAPTION>
1995 1996 Change
<S> <C> <C> <C>
Revenues 69,424 79,152 14%
Operating income 28,561 31,738 11%
Net income 18,604 19,977 7%
Earnings per common share $1.18 $1.26 7%
Cash dividends per common share $0.62 $0.70 13%
</TABLE>
Revenues increased by $3.2 million or 11% due to increased orders received from
both existing and new customers.
Expenses increased by $6.6 million or 16% primarily due to two factors: first,
operating expenses incurred on the new facility purchased during 1995 for which
there were no operating expenses incurred during the first quarter of 1995 and
second, staff levels and related costs were up 15% to accommodate increased
orders received.
The Company's effective tax rate increased from 38% to 41%. This differential
is primarily the result of an investment tax credit in 1995 on real property
purchased that year.
We note that while Operating Income is up by 11% for the first six month of
1996, Net income is up by only 7%. The 4% differential stems from the effect
of 1995's lower tax rate.
<PAGE> 8
<TABLE>
Liquidity And Capital Resources
<CAPTION>
Dec 31, 1995 Jun 30, 1996
<S> <C> <C>
Cash and cash equivalents 6,512 6,962
Total assets 197,998 200,794
Total liabilities 60,170 54,392
Shareholders' equity 137,828 146,402
Book value per share $8.71 $9.25
Common shares outstanding 15,831 15,823
</TABLE>
As presented in the Statement of Cash Flow, net cash provided by operating
activities was $23.1 million during the first six months of fiscal 1996. Net
cash absorbed by investing activities was not significant. The payment of
$11.1 million in dividends to shareholders and repaid debt of $6 million
constituted the most significant use of cash during the first half of fiscal
1996. The resultant net increase in cash and cash equivalents was $.5 million
for the six months ended June 30, 1996.
At June 30, 1996 the Company's total debt was $32 million as compared to $38
million at December 31, 1995.
Working capital requirements as well as projected capital expenditures for the
remainder of fiscal 1996 are expected to be provided by cash generated from
operations.
<PAGE> 9
Part II - Other Information
Item 4 - Submission of Matters to a Vote of Shareholders
At the Company's Annual Meeting of Shareholders' on April 22, 1996 shareholders
voted as follows, in each case by a total of 12,817,478 shares in favor and
none opposed.
i) To fix the number of directors of the corporation at eight.
ii) To elect as directors A. Neil Pappalardo, Roland L. Driscoll, Jerome H.
Grossman, Lawrence A. Polimeno, Edward B. Roberts, Morton E. Ruderman, and
Louis P. Valente until the 1997 Annual Meeting of Shareholders' and thereafter
until their successors are chosen and qualified.
iii) To select Messrs. Arthur Andersen, LLP as auditors of the Corporation
for the current fiscal year.
Item 6 - Exhibits and Reports on Form 8-k
A Financial Data Schedule is appended as an exhibit to this document. There
were no reports filed on Form 8-K during the quarter ended June 30, 1996.
Signatures
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.
Medical Information Technology, Inc.
(Registrant)
Dec 26, 1996
(Date)
Barbara A. Manzolillo, Chief Financial Officer and Treasurer
(Signature)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 6,962
<SECURITIES> 56,083
<RECEIVABLES> 18,381
<ALLOWANCES> 160
<INVENTORY> 0
<CURRENT-ASSETS> 83,469
<PP&E> 140,382
<DEPRECIATION> 25,568
<TOTAL-ASSETS> 200,794
<CURRENT-LIABILITIES> 32,668
<BONDS> 20,000
0
0
<COMMON> 3,984
<OTHER-SE> 142,418
<TOTAL-LIABILITY-AND-EQUITY> 200,794
<SALES> 51,532
<TOTAL-REVENUES> 79,152
<CGS> 0
<TOTAL-COSTS> 47,414
<OTHER-EXPENSES> 1,723
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,489
<INCOME-PRETAX> 33,759
<INCOME-TAX> 13,777
<INCOME-CONTINUING> 19,977
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,977
<EPS-PRIMARY> 1.26
<EPS-DILUTED> 1.26
</TABLE>
