<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1995
COMMISSION FILE NO. 0-10552
SCHERER HEALTHCARE, INC.
(Exact name of registrant as specified in its Charter)
DELAWARE 59-0688813
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
2859 PACES FERRY ROAD, SUITE 300, ATLANTA, GEORGIA 30339
(Address of principal executive offices, including Zip Code)
(770) 333-0066
(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 of each of the issuer's classes of Common Stock,
as of the latest practicable date:
CLASS OUTSTANDING AS OF JULY 31, 1995
------------------------------------ -----------------------------------
Common Stock, $0.01 par value 4,266,452
Page 1 of 15
Index of Exhibits appears on page 14
<PAGE>
SCHERER HEALTHCARE, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1995
TABLE OF CONTENTS
ITEM PAGE
NUMBER PART I. FINANCIAL INFORMATION NUMBER
1 Financial Statements:
Condensed Consolidated Balance
Sheets as of June 30, 1995 and
March 31, 1995. . . . . . . . . . . . . . . . . . . . . . 3
Condensed Consolidated Statements
of Operations for the Three Months
Ended June 30, 1995 and 1994. . . . . . . . . . . . . . . 5
Condensed Consolidated Statements
of Cash Flows for the Three Months
Ended June 30, 1995 and 1994. . . . . . . . . . . . . . . 6
Notes to Condensed Consolidated
Financial Statements. . . . . . . . . . . . . . . . . . . 7
2 Management's Discussion and Analysis
of Financial Condition and Results
of Operations . . . . . . . . . . . . . . . . . . . . . . 9
PART II. OTHER INFORMATION
5 Other Information . . . . . . . . . . . . . . . . . . . . 12
6 Exhibits and Reports on Form 8-K. . . . . . . . . . . . . 12
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . 13
Index to Exhibits . . . . . . . . . . . . . . . . . . . . 14
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
June 30, 1995 March 31,1995
------------- -------------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 2,253,000 $ 1,273,000
Investments, at cost which approximates market 56,000 3,232,000
Accounts receivable, less allowance for doubtful accounts
of $259,000 and $228,000, respectively 6,868,000 7,248,000
Current maturities of notes receivable 492,000 328,000
Inventories 5,507,000 5,644,000
Prepaid and other 479,000 506,000
----------- -----------
Total current assets 15,655,000 18,231,000
----------- -----------
PROPERTY AND EQUIPMENT 18,900,000 18,826,000
Less accumulated depreciation (5,882,000) (5,389,000)
----------- -----------
Net property and equipment 13,018,000 13,437,000
----------- -----------
OTHER ASSETS
Cost in excess of net assets of
businesses acquired, net 7,057,000 7,165,000
Other investments, at cost 650,000 650,000
Notes receivable, less current portion 757,000 1,038,000
Intangibles 465,000 829,000
Deferred taxes and other 329,000 329,000
----------- -----------
Total other assets 9,258,000 10,011,000
----------- -----------
TOTAL ASSETS $37,931,000 $41,679,000
----------- -----------
----------- -----------
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
June 30, 1995 March 31, 1995
------------- --------------
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 3,298,000 $ 3,715,000
Accrued expenses 4,160,000 5,071,000
Line of credit and current maturities
of debt obligations 1,489,000 3,423,000
Deferred contract revenue 561,000 772,000
Payable to affiliates 7,574,000 7,601,000
Other 148,000 58,000
----------- -----------
Total current liabilities 17,230,000 20,640,000
LONG-TERM DEBT, net of current maturities 4,793,000 4,944,000
OTHER LIABILITIES 359,000 388,000
COMMITMENTS AND CONTINGENCIES
MINORITY INTERESTS IN SUBSIDIARY AND PARTNERSHIPS 1,246,000 1,221,000
STOCKHOLDERS' EQUITY
Convertible preferred stock - $.01 par value,
2,000,000 shares authorized;
35,006 shares issued and outstanding --- ---
Common stock - $.01 par value,
12,000,000 shares authorized;
4,642,814 shares issued ;
4,266,452 shares outstanding 46,000 46,000
Capital in excess of par value 22,317,000 22,317,000
Accumulated deficit (5,087,000) (4,904,000)
Less treasury stock, at cost (2,973,000) (2,973,000)
----------- -----------
Total stockholders' equity 14,303,000 14,486,000
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $37,931,000 $41,679,000
----------- -----------
----------- -----------
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the three months ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
----------- -----------
<S> <C> <C>
NET SALES $11,679,000 $10,662,000
----------- -----------
COSTS AND EXPENSES
Cost of goods sold 7,737,000 7,508,000
Selling, general, and administrative 3,560,000 3,829,000
Research and development 505,000 668,000
----------- -----------
Total costs and expenses 11,802,000 12,005,000
----------- -----------
OPERATING LOSS (123,000) (1,343,000)
OTHER EXPENSE, net (40,000) (177,000)
----------- -----------
LOSS BEFORE MINORITY INTEREST
AND INCOME TAXES (163,000) (1,520,000)
MINORITY INTEREST IN NET
LOSS OF SUBSIDIARY AND
PARTNERSHIPS 16,000 543,000
----------- -----------
LOSS BEFORE INCOME TAXES (147,000) (977,000)
PROVISION FOR INCOME TAXES (36,000) (36,000)
----------- -----------
NET LOSS (183,000) (1,013,000)
----------- -----------
----------- -----------
NET LOSS PER COMMON SHARE $ (.04) $ (.24)
----------- -----------
----------- -----------
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,266,452 4,228,777
----------- -----------
----------- -----------
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the three months ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
---------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (184,000) $(1,013,000)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization 648,000 734,000
Minority interest 25,000 (543,000)
Gain on sale of assets (209,000) (27,000)
Other noncash charges and credits, net (9,000) 45,000
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net 380,000 387,000
Inventories 136,000 (1,087,000)
Prepaid and other 26,000 (12,000)
Income taxes, net 90,000 (54,000)
Accounts payable and accrued expenses (1,326,000) (191,000)
Deferred contract revenues (211,000) (163,000)
Other liabilities (28,000) (27,000)
---------- -----------
Net cash used for operating activities (662,000) (1,951,000)
---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment, net (118,000) (403,000)
Proceeds from disposition of assets 209,000 3,000
Decrease in notes receivable 117,000 139,000
Decrease in investments 3,176,000 ---
Other investing activities, net 360,000 (141,000)
---------- -----------
Net cash provided by (used for) investing activities 3,744,000 (402,000)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments of borrowings (2,074,000) (60,000)
Advances from (repayments to) affiliated companies (28,000) 1,429,000
---------- -----------
Net cash provided by (used for) financing activities (2,102,000) 1,369,000
---------- -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 980,000 (984,000)
CASH AND CASH EQUIVALENTS, beginning of period 1,273,000 3,547,000
---------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 2,253,000 $ 2,563,000
---------- -----------
---------- -----------
NON CASH INVESTING AND FINANCING TRANSACTIONS:
Conversion of note receivable from Marquest to Marquest common stock $ --- $ 2,500,000
---------- -----------
---------- -----------
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE>
SCHERER HEALTHCARE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1.
The accompanying condensed consolidated financial statements of Scherer
Healthcare, Inc. and its subsidiaries (the "Company") include all adjustments
that, in the opinion of management, are necessary for a fair presentation of the
results for the period indicated. Quarterly results of operations are not
necessarily indicative of annual results. These statements should be read in
conjunction with the consolidated financial statements and the notes thereto
included in the Company's Annual Report on Form 10-K for the fiscal year ended
March 31, 1995 ("Fiscal 1995").
Certain fiscal 1995 amounts have been reclassified to conform with the fiscal
1996 presentation.
NOTE 2.
The components of inventory consist of the following:
<TABLE>
<CAPTION>
June 30, 1995 March 31, 1995
------------- --------------
<S> <C> <C>
Finished products $1,824,000 $2,107,000
Work in progress 193,000 203,000
Containers, packaging, and raw materials 3,490,000 3,334,000
---------- ----------
$5,507,000 $5,644,000
---------- ----------
---------- ----------
</TABLE>
Inventories are stated at the lower of net realizable value or cost using the
first-in, first-out ("FIFO") method.
NOTE 3.
The Company had a $3,200,000 line of credit arrangement with a bank which was
collateralized by $3,200,000 of investments. Borrowings under the line of
credit had an interest rate of prime. In June 1995, the Company elected to
payoff its then remaining balance on this line of credit of $2,989,000 with the
investments that collateralized the line.
Debt and obligations under capital leases consisted of the following:
<TABLE>
<CAPTION>
June 30, 1995 March 31, 1995
------------- --------------
<S> <C> <C>
Obligations under line of credit arrangement $ -- $1,944,000
Swiss debt principal and accrued interest at 9% 816,000 813,000
Note payable to bank, due through fiscal 2004;
variable interest rate, 8.375% at June 30, 1995 1,211,000 1,234,000
Mortgage note payable due through fiscal 1999;
prime plus 1/2%, 9.5% at June 30, 1995 462,000 466,000
Obligations under capital leases, due in varying
installments through fiscal 1999 863,000 935,000
Notes payable due fiscal 1996 at 18% 220,000 220,000
Swiss notes payable due fiscal 1999 at 8% 2,637,000 2,677,000
Other long-term debt 73,000 78,000
---------- ----------
6,282,000 8,367,000
Less current maturities (1,489,000) (3,423,000)
---------- ----------
Long-term debt $4,793,000 $4,944,000
---------- ----------
---------- ----------
</TABLE>
7
<PAGE>
NOTE 4.
At June 30, 1995 and March 31, 1995, the Company had payables to affiliates
of approximately $7,574,000 and $7,601,000, respectively, due to Scherer
Scientific, Ltd. and Scherer Capital, L.L.C.. These payables are due on
demand and bear interest ranging from prime rate plus .5% to prime rate plus
2%. These entities are controlled by a stockholder of the Company.
During the first quarter of fiscal 1996 and prior periods, Scherer
Scientific, Ltd. provided to the Company and its subsidiaries administrative,
accounting, management oversight and payroll services (collectively, the
"Administrative Services") and facilities costs. Effective July 1, 1995,
Scherer Scientific, Ltd. and the Company terminated the Administrative
Services arrangement and approximately 14 employees of Scherer Scientific,
Ltd. became employees of the Company. As a result, the Company currently
provides its own administrative, accounting, management and payroll services.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, the net sales and
operating income (loss) for each segment of the business of the Company and
its subsidiaries:
<TABLE>
<CAPTION>
Three months ended June 30,
1995 1994
----------- -----------
<S> <C> <C>
NET SALES:
Medical Device and Surgical/Safety
Disposables Segment
Marquest Medical Products, Inc. $ 5,284,000 $ 4,899,000
Custom Medical Products 3,143,000 2,781,000
Waste Management Services Segment 2,623,000 2,470,000
Pharmaceutical Research and Development Segment 210,000 199,000
Consumer Healthcare Products Segment 419,000 313,000
----------- -----------
Company Totals $11,679,000 $10,662,000
----------- -----------
----------- -----------
OPERATING INCOME (LOSS):
Medical Device and Surgical/Safety
Disposables Segment
Marquest Medical Products, Inc. $ (45,000) $ (880,000)
Custom Medical Products 136,000 (64,000)
Waste Management Services Segment 268,000 345,000
Pharmaceutical Research and Development Segment (407,000) (649,000)
Consumer Healthcare Products Segment 180,000 101,000
Corporate (255,000) (196,000)
----------- -----------
Company Totals $ (123,000) $(1,343,000)
----------- -----------
----------- -----------
</TABLE>
The Company's net sales increased by 10% to $11,679,000 for the first quarter
of fiscal 1996 from $10,662,000 during the same period in fiscal 1995. The
Company's operating loss decreased to $123,000 for the first quarter of
fiscal 1996 from $1,343,000 during the same period in fiscal 1995. The
results of operations of the Company are dependent upon the results of
operations of each of its subsidiaries and majority owned partnerships
operating in the Company's individual business segments. Set forth below is
a discussion of the results of operations of each of these segments.
Sales of the Company's 40% owned subsidiary, Marquest Medical Products, Inc.
("Marquest"), increased 8% to $5,284,000 for the first quarter of fiscal 1996
from $4,899,000 during the same period in fiscal 1995. Marquest's sales in
the first quarter of fiscal 1995 were low due to a decline in sales to
hospitals which Marquest believes was due to the uncertainties of healthcare
reform. Also, many of Marquest's distributors purchased high levels of
product during the fourth quarter of fiscal 1994 which depressed Marquest's
sales in the first quarter of fiscal 1995.
Marquest's operating loss decreased to $45,000 in the first quarter of fiscal
1996 from $880,000 in the same quarter last year due to the increase in sales
discussed above plus focused emphasis on programs implemented to reduce
costs. Marquest reduced manufacturing costs and administrative expenses by
reductions in personnel, improved operational efficiencies and increased
vertical integration of the manufacturing processes. Primarily, as a result
of these measures, Marquest reduced its cost of sales from 76% of net sales
in the first quarter of fiscal 1995 to 70% in the first quarter of fiscal
1996 and its selling, general and administrative expenses from 41% of net
sales in the first quarter of fiscal 1995 to 30% in the first quarter of
fiscal 1996.
9
<PAGE>
Scherer Healthcare, Ltd., which is a majority owned partnership of the
Company conducting business under the name Custom Medical Products ("CMP"),
experienced a 13% increase in sales to $3,143,000 in the first quarter of
fiscal 1996 from $2,781,000 in the first quarter of fiscal 1995.
Additionally, CMP reported operating income of $136,000 for the first quarter
of fiscal 1996 compared to an operating loss of $64,000 during the first
quarter of fiscal 1995. These increases are a result of two main factors.
First, CMP experienced sizable sales growth of its disposable specialty
apparel, which is sold to the industrial and clean room markets, primarily
due to the introduction of two new fabric lines. Second, CMP entered into a
new agreement with Cordis Corporation, effective April 1, 1995, which
requires Cordis to reimburse CMP (approximately $52,500 per month) to help
offset monthly losses incurred under its contract with Cordis to assemble
surgical disposable trays. CMP experienced substantial losses under its
surgical trays contract with Cordis during the first quarter of fiscal 1995.
Sales in the Company's Waste Management Services Segment increased
approximately 6% to $2,623,000 in the first quarter of fiscal 1996 from
$2,470,000 in the first quarter of fiscal 1995. The increase was due to the
continuing acquisition of new hospital contracts. Operating income, however,
decreased 22% or $77,000 to $268,000 for the first quarter of fiscal 1996
compared to $345,000 for the first quarter of fiscal 1995. The decrease in
operating income was primarily caused by a rise in operating costs that could
not be offset due to the current pricing pressure in both the hospital and
physician markets combined with an increase in insurance costs in fiscal 1996.
The Consumer Healthcare Products Segment achieved a record level of sales
during the first quarter of fiscal 1996. Sales increased 34% to $419,000 for
the first quarter of fiscal 1996 compared to $313,000 in the first quarter
of fiscal 1995. Operating income increased 78% to $180,000 for the first
quarter of fiscal 1996 from $101,000 in the first quarter of fiscal 1995.
The increase in sales can be attributed to higher than normal sales in the
month of June of over-the-counter products that are most popular during the
summer months combined with less than average sales of one of the same
products during the first quarter of fiscal 1995. The primary reason for the
sales growth was an increase in sales to McKesson Drug Co., the primary
wholesaler to Wal-Mart.
Biofor, Inc., a majority owned subsidiary of the Company operating the
Pharmaceutical Research and Development Segment, decreased its operating loss
37% to $407,000 for the first quarter of fiscal 1996 from $649,000 during the
same period in fiscal 1995. In the fourth quarter of fiscal 1995, Biofor
wrote down certain intangible assets to their net realizable value which
reduced the quarterly amortization expense associated with those intangible
assets by approximately $81,000. Biofor significantly reduced its cash flow
requirements by curtailing its research and development activities other than
as necessary to perform existing third party research contracts.
Anticipating this decision, testing and laboratory expenses were reduced
during the first quarter of fiscal 1996 compared to the first quarter of
fiscal 1995.
LIQUIDITY AND CAPITAL RESOURCES
CASH USED BY OPERATIONS
THE COMPANY. The Company's (excluding Marquest) use
of cash from operating activities decreased to approximately $710,000 for the
first quarter of fiscal 1996 from $1,420,000 during the first quarter of
fiscal 1995. A large part of the reduction in use of operating cash relates
to improved inventory management. In the first quarter of fiscal 1995,
Custom Medical made significant inventory purchases in anticipation of
projected sales increases from the Cordis contract. The anticipated level of
sales did not materialize and a concerted effort was made to reduce related
inventory in fiscal 1995 and has continued through the first quarter of
fiscal 1996.
The Company's decision to cease further independent drug design efforts and
concentrate on contract research and development at Biofor should improve
operating cash flow requirements in future periods. Prior to this decision,
Biofor required approximately $175,000 cash per month.
The Company continues to closely monitor CMP. The unprofitable contract with
Cordis was renegotiated in April 1995 to a "break even basis" on direct
costs. Under the new contract the Company will exit the surgical tray
business by approximately early September 1995. All operations of this
segment are being evaluated to improve inventory control, receivables
management, and gross profit margins for all products. The Company is
reviewing the viability of expanding the disposables products line for the
clean room and industrial safety markets. All of the activities are designed
to improve profitability and cash flow.
10
<PAGE>
MARQUEST. The following events affecting the liquidity of Marquest occurred
in the first quarter of Fiscal 1996: (i) Marquest sold its 10% investment in
Seabrook Medical Systems, Inc., realizing proceeds of $200,000; (ii) Marquest
negotiated a repayment plan with the IRS for $745,000 in taxes owed plus
interest, whereby Marquest paid $400,000 in June 1995, with the remaining
balance due in monthly installments over a two-year period; and (iii)
Marquest settled a lawsuit in May 1995 with former officers of Marquest
whereby Marquest agreed to pay a total of $725,000 plus interest at 9%. A
total of $200,000 was paid in May 1995 and the remainder will be paid in
monthly installments through September 1998.
During the first quarter of fiscal 1996, Marquest generated positive cash
flow from operations. Marquest has taken several steps in fiscal 1996 to
preserve cash and increase profitability on sales, including (i) the addition
of manufacturer's representatives, (ii) cost reductions in all departments,
and (iii) an increase to the automation of Marquest's manufacturing process.
Management of Marquest believes that it can fund its current operating levels
and meet its obligations as they come due for the first half of fiscal 1996
from existing cash. Thereafter, the viability of Marquest will be dependent
on increasing operating income and, if necessary, the successful completion
of external financing arrangements, which Marquest is currently negotiating.
There can be no assurance that external financing will be available to meet
operating requirements and there remains substantial doubt about Marquest's
ability to continue as a going concern.
CASH FLOWS FROM FINANCING AND INVESTING ACTIVITIES.
Prior to fiscal 1996, Scherer Scientific, Ltd., Scherer Capital L.L.C.,
and RPS Investments, Ltd. made loans (the "Affiliate Loans") to the Company
and its subsidiaries the proceeds of which were used primarily for working
capital and business acquisitions.
The Affiliate Loans are payable on demand and bear interest at rates ranging
from prime rate plus .5% to prime rate plus 2%. At June 30, 1995,
approximately $7,574,000 in Affiliate Loans were payable by the Company and
its subsidiaries.
The affiliated entities have indicated to the Company that they will not
provide additional loans to the Company or its subsidiaries. Additionally,
the Company and the affiliates intend to restructure the Affiliate Loans to
include fixed payment terms, uniform interest rates and cross
collateralization and guarantees.
During the first quarter of fiscal 1996, the Company dissolved its $3,200,000
line of credit with Trust Company Bank. This line was fully collateralized
by cash investments. The Company determined that the line provided no net
financial leverage. The Company has converted the collateral previously used
to secure the line of credit into operating cash. Available cash balances
are invested in repurchase agreements (principally U.S. Treasuries) daily.
The Company is evaluating alternative methods of financing including the
possibility of external financing.
11
<PAGE>
PART II. OTHER INFORMATION
Item 5. OTHER INFORMATION
On August 14, 1995, John D. Shirley resigned as Executive Vice
President and Chief Financial Officer of the Company in order to
pursue other business opportunities. The Company is currently
evaluating its alternatives with respect to filling the vacancy
created by Mr. Shirley's resignation.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
EXHIBIT NO. DESCRIPTION
---------- -----------
27 Financial Data Schedule
(b) Reports on Form 8-K.
None
12
<PAGE>
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.
SCHERER HEALTHCARE, INC.
(Registrant)
Date: August 21, 1995 /s/ Robert P. Scherer, Jr.
--------------------------
Robert P. Scherer, Jr.
Chairman
Date: August 21, 1995 /s/ Gary W. Ruffcorn
--------------------
Gary W. Ruffcorn
Principal Accounting Officer
13
<PAGE>
SCHERER HEALTHCARE, INC.
INDEX OF EXHIBITS
The following exhibit is being filed with this report.
<TABLE>
<CAPTION>
Exhibit Page
Number Description Number
------- ----------- ------
<C> <S> <C>
27 Financial Data Schedule 15
(included only in EDGAR filing)
</TABLE>
14
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
SCHERER HEALTHCARE, INC.
EXHIBIT 27
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY FOR THE THREE
MONTHS ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS
<CAPTION>
3 Months Ended
June 30, 1995
--------------
<S> <C>
Cash and cash items $ 2,253,000
Marketable Securities 56,000
Notes and accounts receivable - trade 7,127,000
Allowances for doubtful accounts (259,000)
Inventory 5,507,000
Total current assets 15,655,000
Property, plant and equipment 18,900,000
Accumulated depreciation (5,882,000)
Total assets 37,931,000
Total current liabilities 17,230,000
Bonds, mortgages and similar debt 4,793,000
Preferred stock-mandatory redemption --
Preferred stock-no mandatory redemption --
Common stock 46,000
Other stockholders' equity 14,257,000
Total liabilities and stockholders' equity 37,931,000
Net sales of tangible products 11,679,000
Total revenues 11,679,000
Cost of tangible goods sold 7,737,000
Total costs and expenses applicable to sales and revenues 11,802,000
Other costs and expenses 40,000
Provision for doubtful accounts and notes --
Interest and amortization of debt discount --
Income before taxes and other items (147,000)
Income tax expense 36,000
Income/loss continuing operations (183,000)
Discontinued operations --
Extraordinary items --
Cumulative effect-changes in accounting principles --
Net income of loss (183,000)
Earnings per share - primary (.04)
Earnings per share - fully diluted (.04)
15
</TABLE>
