<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, 1998
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.)
120 INTERSTATE NORTH PARKWAY, S.E., SUITE 305, ATLANTA, GEORGIA 30339
(Address of principal executive offices, including Zip Code)
(770) 933-1800
(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 28, 1998
- -------------------------------------- ---------------------------------------
Common Stock, $0.01 par value 4,332,457
<PAGE>
SCHERER HEALTHCARE, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1998
TABLE OF CONTENTS
-----------------
<TABLE>
<CAPTION>
ITEM PAGE
NUMBER PART I. FINANCIAL INFORMATION NUMBER
------ ------
<S> <C>
1 Financial Statements:
Condensed Consolidated Balance
Sheets as of June 30, 1998 and
March 31, 1998................................................... 3
Condensed Consolidated Statements
of Operations for the Three Months
Ended June 30, 1998 and 1997..................................... 5
Condensed Consolidated Statements
of Cash Flows for the Three Months
Ended June 30, 1998 and 1997..................................... 6
Notes to Condensed Consolidated
Financial Statements............................................. 7
2 Management's Discussion and Analysis
of Financial Condition and Results
of Operations.................................................... 8
PART II. OTHER INFORMATION
5 Other Information................................................ 11
6 Exhibits and Reports on Form 8-K................................. 11
SIGNATURES....................................................... 12
Index to Exhibits................................................ 13
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
- ------------------------------
ITEM 1. FINANCIAL STATEMENTS
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, 1998 March 31, 1998
--------------- ---------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 6,741,000 $ 6,868,000
Accounts receivable, less allowance for doubtful
accounts of $195,000 and $189,000, respectively 3,124,000 2,796,000
Current maturities of notes receivable 196,000 191,000
Inventory 192,000 174,000
Prepaid and other 185,000 212,000
--------------- ---------------
Total current assets 10,438,000 10,241,000
--------------- ---------------
PROPERTY AND EQUIPMENT 7,432,000 7,157,000
Less accumulated depreciation (3,346,000) (3,099,000)
--------------- ---------------
Net property and equipment 4,086,000 4,058,000
--------------- ---------------
OTHER ASSETS
Cost in excess of net assets acquired, net 2,301,000 2,328,000
Investments, at market value 6,276,000 6,251,000
Other investments, at cost 650,000 650,000
Notes receivable, less current portion 123,000 174,000
Intangibles 1,437,000 1,410,000
Deferred income taxes 329,000 329,000
Other 158,000 163,000
Net assets of discontinued operations 258,000 188,000
--------------- ---------------
Total other assets 11,532,000 11,493,000
--------------- ---------------
TOTAL ASSETS $ 26,056,000 $ 25,792,000
--------------- ---------------
--------------- ---------------
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
June 30, 1998 March 31, 1998
------------- -------------
(Unaudited)
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 693,000 $ 809,000
Accrued expenses 1,386,000 1,594,000
Current maturities of debt obligations 264,000 269,000
Income taxes payable 64,000 115,000
Other 78,000 78,000
------------- -------------
Total current liabilities 2,485,000 2,865,000
------------- -------------
LONG-TERM DEBT, net of current maturities 462,000 504,000
OTHER LIABILITIES 475,000 507,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Convertible preferred stock - $.01 par value,
2,000,000 shares authorized; - -
23,193 shares issued and outstanding
Common stock - $.01 par value,
12,000,000 shares authorized;
4,711,762 shares issued at June 30, 1998
(4,695,121 at March 31, 1998);
4,332,400 shares outstanding at June 30, 1998
(4,315,759 at March 31, 1998) 47,000 47,000
Capital in excess of par value 22,394,000 22,366,000
Unrealized loss on investments (20,000) (48,000)
Retained earnings 3,246,000 2,584,000
Less treasury stock, at cost (3,033,000) (3,033,000)
------------- -------------
Total stockholders' equity 22,634,000 21,916,000
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 26,056,000 $ 25,792,000
------------- -------------
------------- -------------
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
June 30,
---------------------------------------
1998 1997
-------------- --------------
<S> <C> <C>
NET SALES $ 3,729,000 $ 3,505,000
-------------- --------------
COSTS AND EXPENSES
Cost of goods sold 2,102,000 1,960,000
Selling, general, and administrative 1,146,000 1,204,000
-------------- --------------
Total costs and expenses 3,248,000 3,164,000
-------------- --------------
OPERATING INCOME 481,000 341,000
OTHER INCOME (EXPENSE)
Interest income 173,000 53,000
Interest expense - (47,000)
Other, net 19,000 -
-------------- --------------
Total other income (expense) 192,000 6,000
-------------- --------------
Income from continuing operations before income taxes 673,000 347,000
Provision (benefit) for income taxes 11,000 (11,000)
-------------- --------------
Income from continuing operations 662,000 358,000
Income from discontinued operations, net of income
taxes of $0 - 72,000
-------------- --------------
NET INCOME $ 662,000 $ 430,000
-------------- --------------
-------------- --------------
BASIC INCOME PER COMMON SHARE
Income from continuing operations $ 0.15 $ 0.08
Income from discontinued operations - 0.02
-------------- --------------
Net Income $ 0.15 $ 0.10
-------------- --------------
-------------- --------------
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC 4,318,505 4,314,223
-------------- --------------
-------------- --------------
DILUTED INCOME PER COMMON SHARE
Income from continuing operations $ 0.14 $ 0.08
Income from discontinued operations - 0.02
-------------- --------------
Net Income $ 0.14 $ 0.10
-------------- --------------
-------------- --------------
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - DILUTED 4,579,214 4,426,990
-------------- --------------
-------------- --------------
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
SCHERER HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
June 30,
----------------------------------
1998 1997
-------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 662,000 $ 430,000
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 307,000 246,000
Income from discontinued operations - (72,000)
Other noncash charges and credits, net 6,000 8,000
Changes in operating assets and liabilities:
Accounts receivable (334,000) (139,000)
Inventories (18,000) (6,000)
Prepaid and other 27,000 (12,000)
Income taxes, net (51,000) 8,000
Accounts payable and accrued expenses (324,000) 126,000
Other liabilities (32,000) (6,000)
-------------- --------------
Net cash provided by operating activities of continuing operations 243,000 583,000
Net operating activities of discontinued operations (69,000) 219,000
-------------- --------------
Net cash provided by operating activities 174,000 802,000
-------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment, net (275,000) (143,000)
Decrease in notes receivable 46,000 44,000
Other investing activities, net (53,000) (51,000)
Net investing activities of discontinued operations - 77,000
-------------- --------------
Net cash used for investing activities (282,000) (73,000)
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayment of borrowings (47,000) (151,000)
Exercise of stock options 28,000 -
Net financing activities of discontinued operations - (332,000)
-------------- --------------
Net cash used for financing activities (19,000) (483,000)
-------------- --------------
CHANGE IN CASH AND CASH EQUIVALENTS (127,000) 246,000
CASH AND CASH EQUIVALENTS, beginning of period 6,868,000 3,237,000
-------------- --------------
CASH AND CASH EQUIVALENTS, end of period $ 6,741,000 $ 3,483,000
-------------- --------------
-------------- --------------
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE>
SCHERER HEALTHCARE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1.
The accompanying unaudited 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, 1998.
Certain fiscal 1998 amounts have been reclassified to conform with the fiscal
1999 presentation.
NOTE 2.
The components of inventory at June 30, 1998 and March 31, 1998 consisted of the
following:
<TABLE>
<CAPTION>
June 30, 1998 March 31, 1998
------------- ---------------
<S> <C> <C>
Finished products $ 69,000 $ 41,000
Containers, packaging, and raw materials 169,000 179,000
LIFO reserve (46,000) (46,000)
------------- ---------------
Total $ 192,000 $ 174,000
------------- ---------------
------------- ---------------
</TABLE>
Inventories are stated at the lower of net realizable value or cost using the
last-in, first-out ("LIFO") method.
NOTE 3.
Borrowings at June 30, 1998 and March 31, 1998 consisted of the following:
<TABLE>
<CAPTION>
June 30, 1998 March 31, 1998
------------- --------------
<S> <C> <C>
Obligations under capital leases, due in varying
installments through fiscal 2003 $ 726,000 $ 773,000
Less current maturities (264,000) (269,000)
------------- --------------
Long-term debt $ 462,000 $ 504,000
------------- --------------
------------- --------------
</TABLE>
NOTE 4.
The Company has investments in high-grade marketable securities composed
primarily of government and corporate fixed income securities. These marketable
securities are classified as available-for-sale and are being carried at fair
market value, based on quoted market prices. The net unrealized gains or losses
on these investments are reported as a separate component of shareholders'
equity.
The amortized cost and fair market value of the Company's marketable securities
are as follows:
<TABLE>
<CAPTION>
Net
Amortized unrealized Fair market
Cost gain (loss) value
--------------- -------------- ---------------
<S> <C> <C> <C>
June 30, 1998
- -------------
Municipal bonds $ 4,779,000 $ 3,000 $ 4,782,000
Corporate bonds 1,219,000 (12,000) 1,207,000
Preferred stocks 298,000 (11,000) 287,000
--------------- -------------- ---------------
Total $ 6,296,000 $ (20,000) $ 6,276,000
--------------- -------------- ---------------
--------------- -------------- ---------------
March 31,1998
- -------------
Municipal bonds $ 4,782,000 $ (20,000) $ 4,762,000
Corporate bonds 1,219,000 (22,000) 1,197,000
Preferred stocks 298,000 (6,000) 292,000
--------------- -------------- ---------------
Total $ 6,299,000 $ (48,000) $ 6,251,000
--------------- -------------- ---------------
--------------- -------------- ---------------
</TABLE>
The municipal bonds mature ranging from 3 years to 27 years and the corporate
bonds mature ranging from 11 years to 27 years.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This Form 10-Q, or documents incorporated by reference, contains, in addition
to historical information, "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, which represent the
Company's expectations or beliefs, including, but not limited to, statements
concerning sales of the Company's products or services and operating income.
The Company cautions that various factors, including, without limitation, the
factors discussed below and in the Company's 1998 Annual Report on Form 10-K
as well as general economic conditions and industry trends, a dependence upon
and/or loss of key vendors or customers, the loss of strategic product
shipping relationships, customer demand, product availability, competition
(including pricing and availability), concentrations of credit risks,
distribution efficiencies, capacity constraints and technological
difficulties could cause actual results or outcomes to differ materially from
those expressed in any forward-looking statements. New factors emerge from
time to time, and it is not possible for management to predict all of such
factors.
RESULTS OF OPERATIONS
NET SALES AND OPERATING INCOME (LOSS).
- --------------------------------------
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,
---------------------------------
1998 1997
------------ ------------
<S> <C> <C>
NET SALES:
Waste Management Services Segment $ 3,414,000 $ 3,078,000
Consumer Healthcare Products Segment 315,000 427,000
------------ ------------
Company Totals $ 3,729,000 $ 3,505,000
------------ ------------
------------ ------------
OPERATING INCOME (LOSS):
Waste Management Services Segment $ 513,000 $ 396,000
Consumer Healthcare Products Segment 113,000 205,000
Corporate (145,000) (260,000)
------------ ------------
Company Totals $ 481,000 $ 341,000
------------ ------------
------------ ------------
</TABLE>
The Company's net sales increased by 6% to $3,729,000 for the first quarter of
fiscal 1999 from $3,505,000 for the first quarter of fiscal 1998. The Company's
operating income increased by 41% to $481,000 for the first quarter of fiscal
1999 from $341,000 during the same period in fiscal 1998. The Company's cost of
goods sold were 56% of net sales for the quarter ended June 30, 1998, which was
unchanged as compared to the quarter ended June 30, 1997. Selling, general and
administrative expenses decreased to 31% of net sales for the first quarter of
fiscal 1999 from 34% for the first quarter of fiscal 1998. The primary reasons
for these changes are discussed below.
The results of operations of the Company are dependent upon the results of
operations of each of its subsidiaries operating in the Company's individual
business segments. Set forth below is a discussion of the results of operations
of each of these segments.
8
<PAGE>
WASTE MANAGEMENT SERVICES SEGMENT
Net sales in the Company's Waste Management Services Segment, which operates
through Bio Systems Partners, Bio Waste Systems, Inc., and Medical Waste
Systems, Inc. (collectively, "Bio Systems"), increased 11% to $3,414,000 for the
first quarter of fiscal 1999 from $3,078,000 for the first quarter of fiscal
1998. As in the past few years, the sales growth is primarily due to securing
new hospital contracts for Bio Systems' core business of providing "sharps"
(including sharp-edged medical waste such as scalpels, syringes, and needles)
disposal services which utilize cost effective reusable containers. Due to cost
pressures, hospitals have become more receptive to out-sourcing certain services
such as sharps management. Additionally, the recent industry trend toward the
formation of hospital networks has enhanced Bio Systems' sales and market share
growth. Market forces and competitive pricing pressures have affected Bio
Systems' ability to increase prices with existing hospital and physician
customers. These factors also impact the prices Bio Systems is able to charge
new and potential customers.
Primarily as a result of the increase in net sales, Bio Systems' increased its
operating income approximately 30% to $513,000 for the quarter ended June 30,
1998 from $396,000 for the quarter ended June 30, 1997. Bio Systems' cost of
goods sold decreased slightly to 58% of net sales for the first quarter of
fiscal 1999 from 59% of net sales for the first quarter of fiscal 1998. Selling,
general, and administrative expenses also decreased slightly to 27% of net sales
for the quarter ended June 30, 1998 from 28% of net sales during the same period
in fiscal 1998. Bio Systems has been successful in controlling its operating
costs and expenses while increasing its net sales. Additionally, Bio Systems
incurred certain costs, primarily legal fees, in the first quarter of fiscal
1998 associated with the purchase of the minority partner's 40% partnership
interest in Bio Systems Partners in October 1997.
CONSUMER HEALTHCARE PRODUCTS SEGMENT
Net sales for the Consumer Healthcare Products Segment, which operates
through Scherer Laboratories, Inc. ("Scherer Labs"), decreased approximately
26% to $315,000 for the first quarter of fiscal 1999 from $427,000 during the
same period in fiscal 1998. The decrease in Scherer Labs' net sales is due to
the following factors: (i) during the first quarter of fiscal 1999, Scherer
Labs' largest customer reduced its buying volume for Scherer Labs' two core
products which resulted in a significant decrease in sales orders for these
products; (ii) increased competition for Scherer Labs' largest volume product
and (iii) as a result of industry consolidation, some of Scherer Labs' other
customers have either significantly decreased or discontinued their sales
orders for Scherer Labs' products. Although Scherer Labs has taken action to
regain the lost sales, there can be no assurance that Scherer Labs will be
able to return its sales volume to the level prior to the factors discussed
above.
As a result of the decrease in net sales, Scherer Labs' operating income
decreased 45% to $113,000 for the first quarter of fiscal 1999 from $205,000 for
the first quarter of fiscal 1998.
CORPORATE
The Company's operating expenses at the corporate level decreased to $145,000
for the quarter ended June 30, 1998 from $260,000 for the quarter ended June 30,
1997. Certain administrative, accounting, management oversight and payroll
services are performed by the Company's Corporate office. The Corporate
operating expenses include the salaries and wages of the personnel who perform
these functions, including the Company's executive officers, rent expense, and
professional accounting and legal fees. In February 1998, the Company relocated
its Corporate headquarters to another location in Atlanta, Georgia and as a
result reduced its rent expense by $65,000 for the first quarter of fiscal 1999,
as compared to the first quarter of fiscal 1998. Additionally, the Company
reduced its legal fees at the Corporate level by $59,000 for the quarter ended
June 30, 1998, as compared to the quarter ended June 30, 1997. In fiscal 1998
the Company incurred legal fees associated with certain litigation that was
settled in the second quarter of fiscal 1998. The Company does not allocate any
revenues to the Corporate level.
OTHER INCOME (EXPENSE).
- -----------------------
The Company's interest income increased to $173,000 for the first quarter of
fiscal 1999 from $53,000 for the first quarter of fiscal 1998. The increase
is a result of the Company's investment, principally in marketable securities
(see Note 4 to the accompanying Notes to Condensed Consolidated Financial
Statements included elsewhere herein), of the net proceeds received by the
Company from the sale of Marquest Medical Products, Inc. ("Marquest") to
Vital Signs, Inc. in July 1997.
9
<PAGE>
The Company recorded interest expense of $47,000 during the first quarter of
fiscal 1998 and had no corresponding interest expense during the first quarter
of fiscal 1999. In July 1997, the Company used a portion of the proceeds from
the sale of Marquest to Vital Signs, Inc. to repay in full the outstanding
principal balance on a note payable to the adult children of an affiliate of the
Company.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash and cash equivalents totaled $6,741,000 at June 30, 1998, a
decrease of $127,000 from March 31, 1998. Working capital increased to
$7,953,000 at June 30, 1998 from $7,376,000 at March 31, 1998. The Company's
long-term debt decreased slightly to $462,000 at June 30, 1998 from $504,000 at
March 31, 1998. The primary reasons for these changes are discussed below.
CASH FLOW FROM OPERATING ACTIVITIES.
- ------------------------------------
The Company's cash provided by operating activities from continuing operations
totaled $243,000 for the first quarter of fiscal 1999, as compared to $583,000
for the first quarter of fiscal 1998. Bio Systems' operations provided cash of
$122,000 for the first quarter of fiscal 1999, down from $374,000 for the first
quarter of fiscal 1998. This decrease is primarily due to the timing of
collection of its accounts receivable. As a result of the decrease in its net
sales, Scherer Labs' cash provided from operating activities decreased to
$85,000 for the quarter ended June 30, 1998 from $142,000 for the quarter ended
June 30, 1997.
CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES.
- ---------------------------------------------------
The Company's cash used for investing activities from continuing operations
totaled $282,000 for the first quarter of fiscal 1999, as compared to $150,000
(excluding cash provided from investing activities of discontinued operations of
$77,000) for the first quarter of fiscal 1998. Bio Systems made capital
expenditures during the first quarter of fiscal 1999 of $273,000 for equipment
and containers as a result of the growth in business.
Cash used for financing activities from continuing operations was $19,000 for
the quarter ended June 30, 1998, as compared to $151,000 (excluding cash used
for financing activities of discontinued operations of $332,000) for the quarter
ended June 30, 1997. During the first quarter of fiscal 1998, the Company made
installment payments of approximately $90,000 on a note payable to the adult
children of an affiliate of the Company. In July, 1997, the Company repaid in
full the outstanding principal balance on the note payable by using a portion of
the proceeds from the sale of Marquest to Vital Signs, Inc.
Management of the Company believes that its current cash on hand and its current
cash flow is sufficient to maintain its current operations. The Company
continues to evaluate its long-term options with regard to the use of its
remaining cash on hand.
10
<PAGE>
PART II. OTHER INFORMATION
Item 5. OTHER INFORMATION
-----------------
The Securities and Exchange Commission has made recent changes to the proxy
rules in Regulation 14A under the Securities Exchange Act of 1934, as amended,
including Rule 14a-4 and Rule 14a-5. Stockholders are entitled to submit
proposals on matters appropriate for stockholder action consistent with the
rules and regulations of the Securities and Exchange Commission and with the
Company's Bylaws.
In connection with a stockholder's proposal to be presented at the 1999 Annual
Meeting of Stockholders where such stockholder has not sought inclusion of the
proposal in the Company's proxy statement and form of proxy, a proxy granted to
the Company's management will give management discretionary authority to vote on
any such stockholder proposal at the 1999 Annual Meeting of Stockholders if:
(i) the Company's Corporate Secretary, Scherer Healthcare, Inc., 120
Interstate North Parkway, Suite 305, Atlanta, Georgia 30339, receives
such proposal after June 14, 1999; or
(ii) if the Company's Corporate Secretary receives such proposal on
or before June 14, 1999 and management describes the proposal and how
it intends to exercise its discretionary voting authority with
respect to such proposal in its proxy statement relating to the 1999
Annual Meeting of Stockholders; provided that, even if the Company
includes such information in its proxy statement, the Company's
management may not exercise its discretionary voting authority if,
among other things, the stockholder submitting the proposal provides
the Company's Corporate Secretary with a written statement on or
before June 14, 1999 that such stockholder intends to deliver a proxy
statement and form of proxy to the number of stockholders required to
carry the proposal.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C> <C>
27 Financial Data Schedule
</TABLE>
(b) Reports on Form 8-K.
None.
11
<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 14, 1998 /s/ Robert P. Scherer, Jr.
--------------------------
Robert P. Scherer, Jr.
Chairman, Chief Executive Officer and President
Date: August 14, 1998 /s/ Gary W. Ruffcorn
--------------------
Gary W. Ruffcorn
Vice President and Chief Financial Officer
12
<PAGE>
SCHERER HEALTHCARE, INC.
INDEX OF EXHIBITS
The following exhibit is being filed with this report.
<TABLE>
<CAPTION>
Exhibit Page
Number Description Number
- ------ -------------------------------------------- ------
<S> <C> <C>
27 Financial Data Schedule 14
(included only in EDGAR filing)
</TABLE>
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM The
Company's Quarterly Report to Stockholders for the Quarter Ended June 30, 1998
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 6,741
<SECURITIES> 0
<RECEIVABLES> 3,319
<ALLOWANCES> (195)
<INVENTORY> 192
<CURRENT-ASSETS> 10,438
<PP&E> 7,432
<DEPRECIATION> (3,346)
<TOTAL-ASSETS> 26,056
<CURRENT-LIABILITIES> 2,485
<BONDS> 462
0
0
<COMMON> 47
<OTHER-SE> 22,587
<TOTAL-LIABILITY-AND-EQUITY> 26,056
<SALES> 3,729
<TOTAL-REVENUES> 3,729
<CGS> 2,102
<TOTAL-COSTS> 3,248
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 673
<INCOME-TAX> 11
<INCOME-CONTINUING> 662
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 662
<EPS-PRIMARY> 0.15
<EPS-DILUTED> 0.14
</TABLE>
