<PAGE>
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-13009
MEDICAL RESOURCES MANAGEMENT, INC.
(Exact name of registrant as specified in its charter)
NEVADA 95-4607643
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
932 GRAND CENTRAL AVENUE GLENDALE, CALIFORNIA 91201
(Address of principal executive offices) (Zip Code)
(818) 240-8250
(Registrant's telephone number, including area code)
Check whether the Registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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 [ ]
State the number of shares outstanding of each of the Registrant's classes of
common equity, as of the latest practicable date: As of June 10, 1999 there were
7,406,927 shares outstanding of the Registrant's common stock, $0.001 par value.
Transitional Small Business Disclosure Format:
Yes [ ] No [ X ]
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
ITEM PAGE NO.
- ---- --------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Balance Sheets - April 30, 1999 (unaudited)
and October 31, 1998 3
Consolidated Statements of Income - Three Months and Six Months
Ended April 30, 1999 and 1998 (unaudited) 4
Consolidated Statements of Cash Flows - Six Months
Ended April 30, 1999 and 1998 (unaudited) 5
Notes to Consolidated Financial Statements (unaudited) 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MEDICAL RESOURCES MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS April 30, October 31,
1999 1998
----------- ------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 76,193 $ 141,228
Accounts receivable, less allowance of $99,852 at April 30, 1999
and $100,000 at October 31, 1998 2,204,659 1,916,159
Inventories 746,106 775,735
Prepaid expenses 214,517 186,260
Income tax receivable 10,173 20,843
----------- ------------
Total current assets 3,251,648 3,040,225
Property and equipment:
Rental equipment 19,592,333 18,949,720
Transportation equipment 901,794 878,641
Office furniture and equipment 388,565 354,683
Leasehold improvements 96,024 96,024
----------- ------------
20,978,666 20,279,068
Less accumulated depreciation 8,921,835 8,090,817
----------- ------------
Net property and equipment 12,056,831 12,188,251
Other assets:
Intangible assets, net of accumulated amortization of $216,245 at
April 30, 1999 and $157,278 at October 31, 1998 627,916 666,883
Deposits and other assets 465,981 307,332
----------- ------------
Total other assets 1,093,897 974,215
----------- ------------
Total assets $16,402,376 $16,202,691
----------- ------------
----------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $ 873,144 $ -
Accounts payable 846,157 1,372,956
Accrued expenses 563,765 793,514
Notes payable 60,000 10,500
Current portion of long-term debt 645,185 561,710
Current portion of obligations under capital leases 2,005,599 2,365,218
----------- ------------
Total current liabilities 4,993,850 5,103,898
Long-term debt, net of current portion 2,601,463 1,723,691
Obligations under capital leases, net of current portion 4,050,972 4,975,770
Deferred income taxes 1,337,608 1,194,905
Shareholders' equity:
Common stock, $.001 par value:
Authorized shares - 100,000,000
Issued and outstanding shares - 7,385,927 at April 30, 1999
and October 31, 1998 7,386 7,386
Additional paid-in capital 1,683,326 1,683,326
Retained earnings 1,727,771 1,513,715
----------- ------------
Total shareholders' equity 3,418,483 3,204,427
----------- ------------
Total liabilities and shareholders' equity $16,402,376 $16,202,691
----------- ------------
----------- ------------
</TABLE>
SEE ACCOMPANYING NOTES
3
<PAGE>
MEDICAL RESOURCES MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended April 30, Six Months Ended April 30,
----------------------------- ------------------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net revenue $3,282,126 $3,179,144 $6,149,621 $6,044,275
Cost of revenue 1,247,679 1,383,030 2,337,276 2,593,597
Depreciation expense 406,576 344,029 811,152 680,519
---------- ---------- ---------- ----------
Gross profit 1,627,871 1,452,085 3,001,193 2,770,159
Selling expenses 542,176 518,058 1,001,742 995,623
General and administrative expenses 572,815 555,490 1,021,564 1,070,313
---------- ---------- ---------- ----------
Operating income 512,880 378,537 977,887 704,223
Interest expense 355,360 200,557 621,127 454,151
---------- ---------- ---------- ----------
Income before income taxes 157,520 177,980 356,760 250,072
Provision for income taxes 66,009 77,290 142,704 104,830
---------- ---------- ---------- ----------
Net income $ 91,511 $ 100,690 $ 214,056 $ 145,242
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income per common share (basic and diluted) $ 0.01 $ 0.01 $ 0.03 $ 0.02
---------- ---------- ---------- ----------
Weighted average common shares 7,385,927 7,385,927 7,385,927 7,383,054
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
SEE ACCOMPANYING NOTES
4
<PAGE>
MEDICAL RESOURCES MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended April 30,
---------------------------------
1999 1998
----------- ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 214,056 $ 145,242
Adjustments to reconcile net income to cash provided
by operating activities:
Depreciation and amortization of property and equipment 831,018 694,753
Amortization of intangibles 58,967 57,831
Provision for doubtful accounts 27,000 6,000
Deferred income taxes 142,704 251,600
Loss on sale of assets 57,505
Changes in operating assets and liabilities:
Accounts receivable (315,500) (528,135)
Inventories 29,629 (68,171)
Prepaid expenses (28,257) (45,293)
Income tax receivable 10,670 (196,555)
Accounts payable (526,799) 611,124
Accrued expenses (229,749) (39,230)
----------- ------------
Net cash provided by operating activities 213,739 946,671
INVESTING ACTIVITIES
Purchases of property and equipment (610,588) (55,570)
Net proceeds from sale of assets - 15,000
Payments for non-compete agreements (20,000) (21,250)
Increase in deposits and other assets (158,649) (45,579)
----------- ------------
Net cash used for investing activities (789,237) (107,399)
FINANCING ACTIVITIES
Borrowings on note payable to bank 873,144 -
Borrowings on notes payable 60,000 181,582
Borrowings on term loans 2,633,391
Principal payments on long-term debt (1,672,144) (251,926)
Payments on notes payable (10,500) (56,816)
Principal payments on capital lease obligations (1,373,428) (750,219)
----------- ------------
Net cash provided by (used for) financing activities 510,463 (877,379)
----------- ------------
Net decrease in cash and cash equivalents (65,035) (38,107)
Cash and cash equivalents at beginning of period 141,228 64,356
----------- ------------
Cash and cash equivalents at end of period $ 76,193 $ 26,249
----------- ------------
----------- ------------
Supplemental information:
Cash paid during the period for:
Interest $ 770,350 $ 450,168
----------- ------------
----------- ------------
Taxes $ - $ -
----------- ------------
----------- ------------
Capital lease obligations entered into for equipment $ 89,010 $ 1,675,928
----------- ------------
----------- ------------
Common stock issued for acquired companies $ - $ 44,000
----------- ------------
----------- ------------
</TABLE>
SEE ACCOMPANYING NOTES.
5
<PAGE>
MEDICAL RESOURCES MANAGEMENT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
April 30, 1999
1. BASIS OF PREPARATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In our opinion, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the periods ended April 30, 1999 are not
necessarily indicative of the results that may be expected for the year ending
October 31, 1999. For further information, refer to the financial statements and
footnotes thereto included in our Annual Report on Form 10-KSB for the year
ended October 31, 1998.
Certain balances from the financial statements for the fiscal year ended October
31, 1998 have been reclassified to conform to the presentation for the current
fiscal year.
2. FINANCING
On March 31, 1999 we entered into an agreement with a bank that provides
for a $2 million term loan and a $2 million line of credit. The proceeds from
the bank term loan were used to repay in full the existing term loan with
Merrill Lynch, as well as for working capital purposes. The bank term loan bears
interest at a rate of prime plus 1.25%, with principal due in 60 equal monthly
installments commencing in May, 1999. The proceeds from the bank line of credit
were used for working capital purposes. This line of credit bears interest at a
rate of prime plus 1.00%, with borrowings based upon eligible accounts
receivable as defined. The balance outstanding under the line of credit as of
April 30, 1999 was $873,144.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
FORWARD-LOOKING STATEMENTS
Certain statements contained in Management's Discussion and Analysis,
particularly in the final paragraph of "Liquidity and Capital Resources," and
elsewhere in this Report on Form 10-QSB are forward-looking statements. These
statements discuss, among other things, expected growth, future revenues and
future performance. The forward-looking statements are subject to risks and
uncertainties, including the following: (a) changes in levels of competition
from current competitors and potential new competition; (b) loss of a
significant customer; and (c) changes in availability or terms of working
capital financing from vendors and lending institutions. The foregoing should
not be construed as an exhaustive list of all factors that could cause actual
results to differ materially from those expressed in forward-looking statements
made by us. Although we believe the expectations expressed in such
forward-looking statements are based on reasonable assumptions within the bounds
of our knowledge of our business, a number of factors could cause actual results
to differ materially from those expressed in any forward-looking statements,
whether oral or written, made by us or on our behalf.
The following discussion and analysis should be read together with the
financial statements and notes thereto included elsewhere herein.
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, the percentage
of net revenues represented by certain items included in the Statements of
Income:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
April 30, April 30,
----------------------- ----------------------
1999 1998 1999 1998
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net revenue 100.0% 100.0% 100.0% 100.0%
Cost of revenue 38.0 43.5 38.0 42.9
Depreciation expense 12.4 10.8 13.2 11.3
----- ----- ----- -----
Gross profit 49.6 45.7 48.8 45.8
Selling expenses 16.5 16.3 16.3 16.5
General and administrative expenses 17.5 17.5 16.6 17.7
----- ----- ----- -----
Operating income 15.6 11.9 15.9 11.6
Interest expense 10.8 6.3 10.1 7.5
----- ----- ----- -----
Income before income taxes 4.8 5.6 5.8 4.1
Provision for income taxes 1.9 2.4 2.3 1.7
----- ----- ----- -----
Net income 2.9% 3.2% 3.5% 2.4%
----- ----- ----- -----
----- ----- ----- -----
</TABLE>
QUARTER ENDED APRIL 30, 1999 COMPARED TO QUARTER ENDED APRIL 30, 1998
For the quarter ended April 30, 1999, net revenue was $3,282,000, compared
to net revenue of $3,179,000 during the quarter ended April 30, 1998, an
increase of $103,000, or 3.2%. The increase in net revenue is principally the
result of (1) an increase in laser surgical services of $26,000, (2) an increase
in disposable and equipment revenues of $71,000 and (3) an increase in other
revenues of $35,000, all of which were offset in part by a decrease of $29,000
in medical rental revenues mostly as the result of milder weather in Southern
California during the quarter (generally, more people are hospitalized during
cold, wet weather such as that experienced during the EL NINO storms in late
1997 and early 1998).
Cost of revenue (excluding depreciation expense) for the quarter ended
April 30, 1999 totaled $1,248,000, a decrease of $135,000, or 9.8%, from cost of
revenues for the second quarter of fiscal year 1998. The decrease in cost of
revenue is primarily attributable to reductions in personnel and other operating
costs since the second quarter of fiscal 1998. Cost of revenue as a percentage
of revenues decreased from 43.5% in the second quarter of fiscal year 1998 to
38.0% in the second quarter of fiscal year 1999.
7
<PAGE>
Depreciation expense for the quarter ended April 30, 1999 was $407,000
compared to $344,000 during the same quarter of fiscal 1998, an increase of
$63,000, or 18.3%. This increase in depreciation expense is principally the
result of the addition of equipment since the second quarter of fiscal year
1998.
Gross profit during the quarter ended April 30, 1999 was $1,628,000,
compared to gross profit of $1,452,000 during the comparable period of the prior
fiscal year, an increase of $176,000, or 12.1%. As a percentage of net revenues,
gross profit increased from 45.7% during the second quarter of fiscal 1998 to
49.6% during the quarter ended April 30, 1999. The increase in the amount of
gross profit is principally the result of the factors described previously.
For the quarter ended April 30, 1999, selling expenses were $542,000,
compared to selling expenses of $518,000 for the second quarter of fiscal year
1998, an increase of $24,000, or 4.6%. As a percentage of net revenues, selling
expenses increased slightly from 16.3% in the quarter ended April 30, 1998 to
16.5% in the second quarter of the current fiscal year.
General and administrative ("G&A") expenses increased to $573,000 in the
quarter ended April 30, 1999 from $555,000 in the quarter ended April 30, 1998,
an increase of $18,000, or 3.2%. As a percentage of net revenues, G&A expenses
remained unchanged at 17.5% during both the quarters ended April 30, 1999 and
1998. The increase in the amount of G&A expense is primarily attributable to an
increase of $80,000 in late fees incurred prior to the debt refinancing in the
second quarter of fiscal 1999, offset in part by reductions in certain general
expenses since the second quarter of fiscal year 1998.
Interest expense for the quarter ended April 30, 1999 was $355,000,
compared to $201,000 in the like quarter of the prior fiscal year, an increase
of $154,000, or 76.6%. The increase in interest expense is the result of an
increase in debt obligations to fund the addition of equipment since the second
quarter of fiscal year 1998.
Income before income taxes was $158,000 for the quarter ended April 30,
1999, compared to $178,000 for the quarter ended April 30, 1998, a decrease of
$20,000, or 11.2%. Income before income taxes, as a percentage of revenues,
decreased to 4.8% in the quarter ended April 30, 1999 from 5.6% in the quarter
ended April 30, 1998 as a result of the aforementioned factors.
8
<PAGE>
SIX MONTHS ENDED APRIL 30, 1999 COMPARED TO SIX MONTHS ENDED APRIL 30, 1998
For the six months ended April 30, 1999, net revenue was $6,150,000
compared to net revenue of $6,044,000 during the six months ended April 30,
1998, an increase of $106,000, or 1.7%. The increase in net revenue is
principally the result of (1) an increase in net revenue from laser surgical
services of $67,000 and (2) and increase in disposable and equipment revenue of
$154,000, offset in part by a decrease of $115,000 in medical rental revenue
mostly as the result of milder weather in Southern California during the first
six months of fiscal year 1999 (generally, more people are hospitalized during
cold, wet weather such as that experienced during the EL NINO storms in late
1997 and early 1998).
Cost of revenue (excluding depreciation expense) for the six months ended
April 30, 1999 totaled $2,337,000, a decrease of $256,000, or 9.9%, from cost of
revenues for the first six months of fiscal year 1998. The decrease in cost of
revenue is primarily attributable to reductions in personnel and other operating
costs since the second quarter of fiscal 1998. Cost of revenue as a percentage
of revenues decreased from 42.9% in the first six months of fiscal year 1998 to
38.0% in the first six months of fiscal year 1999.
Depreciation expense for the six months ended April 30, 1999 was $811,000
compared to $680,000 during the same period of fiscal 1998, an increase of
$131,000, or 19.3%. This increase in depreciation expense is principally the
result of the addition of equipment during fiscal year 1998 and the first six
months of fiscal year 1999.
Gross profit during the six months ended April 30, 1999 was $3,001,000,
compared to gross profit of $2,770,000 during the comparable period of the prior
fiscal year, an increase of $231,000, or 8.3%. As a percentage of net revenues,
gross profit increased from 45.8% during the first six months of fiscal 1998 to
48.8% during the six months ended April 30, 1999. The increase in the amount of
gross profit is principally the result of the factors described previously.
For the six months ended April 30, 1999, selling expenses were $1,002,000,
compared to selling expenses of $996,000 for the first six months of fiscal year
1998, a decrease of $6,000, or 0.6%. As a percentage of net revenues, selling
expenses remained unchanged at 16.5% during both the six months ended April 30,
1999 and 1998.
General and administrative ("G&A") expenses decreased to $1,022,000 in the
six months ended April 30, 1999 from $1,070,000 in the six months ended April
30, 1998, a decline of $48,000, or 4.5%. As a percentage of net revenues, G&A
expenses decreased from 17.7% in the first six months of fiscal year 1998 to
16.6% in the comparable six months of the current fiscal year. The decrease in
the amount of G&A expense is mainly attributable to reductions in certain
general expenses since the second quarter of fiscal year 1998.
Interest expense for the six months ended April 30, 1999 was $621,000,
compared to $454,000 in the first six months of the prior fiscal year, an
increase of $167,000, or 36.8%. The increase in interest expense is the result
of an increase in debt incurred to fund the acquisition of property and
equipment during fiscal 1998 and the first six months of fiscal 1999.
Income before income taxes was $357,000 for the six months ended April 30,
1999, compared to $250,000 for the six months ended April 30, 1998, an increase
of $107,000, or 42.8%. Income before income taxes, as a percentage of revenues,
increased to 5.8% in the six months ended April 30, 1999 from 4.1% in the six
months ended April 30, 1998 as a result of the aforementioned factors.
9
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity requirements arise from the funding of our working capital
needs, principally accounts receivable and inventories, as well as our capital
expenditure needs. Our primary sources for working capital have historically
been borrowings under debt facilities, trade payables and the sale of our Common
Stock.
During the six months ended April 30, 1999, net cash provided by operating
activities was $214,000, which resulted primarily from net income of $214,000
adjusted for (a) depreciation and amortization expense of $890,000 and (b) an
increase in long-term deferred income tax liabilities of $143,000, both of which
were offset in total by a net increase of approximately $1,033,000 in working
capital items.
Net cash used for investing activities during the six months ended April
30, 1999 was $789,000, which consisted of (a) capital expenditures of $610,000,
(b) the payment of $20,000 for non-compete agreements and (c) an increase of
$159,000 in deposits and other assets.
During the six months ended April 30, 1999, cash provided by financing
activities totaled $510,000, consisting of (a) $827,000 in borrowings on a note
payable to a bank, (b) $60,000 in borrowings on other notes payable and (c)
$2,633,000 in borrowings on long-term debt, all of which were offset in part by
(d) $11,000 in principal payments on notes payable, (e) $1,672,000 in principal
payments on long-term debt and (f) $1,373,000 in principal payments on capital
lease obligations.
DEBT REFINANCING
On March 31, 1999 we entered into an agreement with a bank that provides
for a $2 million term loan and a $2 million line of credit. The proceeds from
the bank term loan were used to repay in full the existing term loan with
Merrill Lynch, as well as for working capital purposes. The bank term loan bears
interest at a rate of prime plus 1.25%, with principal due in 60 equal monthly
installments commencing in May, 1999. The proceeds from the bank line of credit
were used for working capital purposes. This line of credit bears interest at a
rate of prime plus 1.00%, with borrowings based upon eligible accounts
receivable as defined. The balance outstanding under the line of credit as of
April 30, 1999 was $873,144.
COMMITMENTS
We had no material commitments for capital expenditures at April 30, 1999.
However, although we have no present commitments or agreements to make such
capital expenditures, during the next 12 months we expect to make substantial
capital expenditures, in accordance with our historical practice. The mobile
laser/surgical services and medical equipment rental businesses are capital
intensive. We believe that funds generated from operations, together with funds
available from a bank working capital facility and from other debt facilities,
will be sufficient to finance our working capital and capital expenditure
requirements for the next 12 months.
10
<PAGE>
YEAR 2000 ISSUES
The Year 2000 issue is the result of computer programs being written using
two digits rather than four to define the applicable year. Any of our computer
programs that have time-sensitive software may recognize a date using "00" as
the year 1900 rather than the year 2000. This could result in a system failure
of miscalculations, causing disruptions of operations, including, among other
things, a temporary inability to process transactions, send invoices, or engage
in similar normal business activities.
Based on an assessment made earlier this fiscal year, we expect to complete
the upgrade of our software in the fourth quarter of fiscal year 1999 so that
our computer systems will function properly with respect to dates in the year
2000 and thereafter. We presently believe that with upgrades the Year 2000 issue
will not pose significant operational problems for our computer systems.
However, if such conversions are not made, or are not completed in a timely
manner, the Year 2000 issue could have a material impact on our operations.
We are continuing formal communications with all of our significant
suppliers and large customers to determine the extent to which our interface
systems may be vulnerable to those third parties' failure to remediate their own
Year 2000 issues. However, we cannot guarantee that the systems of other
companies on which our systems rely will be timely converted and would not have
an adverse effect on our systems.
We will utilize both internal and external resources to upgrade and test
our software for Year 2000 modifications. Our total Year 2000 project cost and
estimates to complete include the estimated costs and time associated with the
impact of third party Year 2000 issues based on presently available information.
The total cost of the Year 2000 project has not yet been estimated, but we
anticipate that such costs will not be significant. To date, we have not
incurred any material costs related to the assessment of, and preliminary
efforts on, our Year 2000 project and the development of a modification plan,
purchase of new systems and systems modifications.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
In February, 1998, we were served with a lawsuit in which we, along with
various other parties, were named as a defendant in an action filed on October
29, 1996 in the Superior Court of the State of California for the County of Los
Angeles. The complaint alleges injury to the plaintiff in the course of a
cosmetic laser procedure performed in November, 1995 for which the plaintiff
seeks to hold us responsible. We intend to defend ourselves vigorously against
all of the allegations contained in the complaint. We do not believe that the
outcome of this litigation will have a material adverse effect on our
consolidated financial condition. Due to the early stage of this litigation, and
based on the information available to us at the present time, we cannot make an
estimate of loss, if any, or predict whether or not such litigation will have a
material adverse effect on our results of operations in any particular period.
ITEM 2. CHANGES IN SECURITIES.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Exhibit Description
- -------- --------------------
<S> <C>
None.
</TABLE>
(b) REPORTS ON FORM 8-K
None.
12
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MEDICAL RESOURCES MANAGEMENT, INC.
Date June 14, 1999
By /s/ Allen H. Bonnifield
--------------------------------------------
Allen H. Bonnifield, President, CEO and CFO
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> FEB-01-1999
<PERIOD-END> APR-30-1999
<CASH> 76,193
<SECURITIES> 0
<RECEIVABLES> 2,304,511
<ALLOWANCES> 99,852
<INVENTORY> 746,106
<CURRENT-ASSETS> 3,251,648
<PP&E> 20,978,666
<DEPRECIATION> 8,921,835
<TOTAL-ASSETS> 16,402,376
<CURRENT-LIABILITIES> 4,993,850
<BONDS> 6,652,435
0
0
<COMMON> 7,386
<OTHER-SE> 3,411,097
<TOTAL-LIABILITY-AND-EQUITY> 16,402,376
<SALES> 6,149,621
<TOTAL-REVENUES> 6,149,621
<CGS> 3,148,428
<TOTAL-COSTS> 3,148,428
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 621,127
<INCOME-PRETAX> 356,760
<INCOME-TAX> 142,704
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 214,056
<EPS-BASIC> 0.03
<EPS-DILUTED> 0.03
</TABLE>
