SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1995 Commission File No. 2-82655
INTERWEST MEDICAL CORPORATION
(Exact name of registrant as specified in its charter)
Oklahoma 75-1864474
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organi-
zation)
Arlington Heights Professional Office Building
3221 Hulen Street, Suite C, Fort Worth, TX 76107-6193
(Address of principal executive offices, zip code)
Registrant's telephone number, including area code: (817) 731-2743
Not Applicable
(Former name, former address, and former fiscal year, if
changed since last report)
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
APPLICABLE ONLY TO ISSUERS INVOLVED IN
BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
(Not Applicable)
Yes X No
(APPLICABLE TO CORPORATE ISSUERS)
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the close of the period
covered by this report. 18,503,036 shares of Common Stock, $0.001
Par Value.
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1995 1994
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $1,988,419 $1,807,951
Accounts receivable - trade 1,630,470 1,571,206
Other receivables 22,156 -
Prepaid expenses 483 35,207
Total current assets 3,641,528 3,414,364
REAL ESTATE DEVELOPMENT
AND CONSTRUCTION COSTS 226,658 250,239
INVESTMENTS
Investment in joint venture 46,430 104,229
Capital stock, at cost which
approximates market 28,750 28,750
Other investments 10,000 10,000
85,180 142,979
PROPERTY AND EQUIPMENT, at cost
Land 176,442 176,442
Buildings and improvements 3,784,989 3,784,989
Equipment and furniture 600,769 574,078
Oil and gas properties (successful
effort method of accounting) 1,747,037 1,499,323
6,309,237 6,034,832
Less accumulated depreciation 1,719,179 1,464,161
4,590,058 4,570,671
OTHER ASSETS
Cash escrow accounts 28,423 22,021
Deferred financing costs, net 290,099 290,099
318,522 312,120
TOTAL ASSETS $8,861,946 $8,690,373
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities
of long-term debt $ 11,100 $ 11,100
Accounts payable 751,176 757,505
Accrued liabilities 259,813 492,009
Total current liabilities 1,022,089 1,260,614
LONG-TERM DEBT 4,566,459 4,571,857
STOCKHOLDERS' EQUITY
Common stock, par value $0.001,
authorized 50,000,000 shares;
issued 20,000,000 shares 20,000 20,000
Additional paid-in capital 4,798,745 4,798,745
Retained deficit ( 1,385,679) ( 1,809,269)
3,433,066 3,009,476
Less shares held in the treasury,
1995 - 1,496,964;
1994 - 1,428,964 159,668 151,574
3,273,398 2,857,902
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $8,861,946 $8,690,373
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Operating revenue $2,313,644 $1,910,222 $4,552,442 $4,053,770
Costs and expenses
Operating costs 1,713,197 1,418,464 3,353,764 3,197,458
General and
administrative
expenses 281,961 412,934 558,853 697,511
Income before
other income
(expenses) 318,486 78,824 639,825 158,801
Other income
(expenses)
Income from
litigation
settlement - - - 6,706
Interest income 18,701 15,307 35,706 25,807
Interest expense (125,934) (126,217) (251,941) (252,500)
Income (loss)
before income
taxes 211,253 (32,086) 423,590 (61,186)
Income tax
provision (benefit) - - - -
Net income
(loss) $211,253 ($32,086) $423,590 ($61,186)
Per share of
common stock:
Weighted average
number of shares
outstanding 18,523,036 19,106,536 18,542,369 19,204,036
Income (loss)
per share $0.01 $0.00 $0.02 $0.00
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES $438,967 ($49,321)
CASH FLOWS FROM INVESTING ACTIVITIES
Distributions received
from joint venture $57,800 $6,000
Payments for acquisition of property (274,405) (144,498)
Net change in escrow accounts (6,402) -
Advances to employees (22,000) (22,000)
Purchase of treasury stock (8,094) (41,100)
Net cash used in
investing activities (253,101) (201,598)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on borrowings (5,398) (4,839)
Net cash used in
financing activities (5,398) (4,839)
Net increase (decrease) in cash 180,468 (255,758)
Cash, beginning of period 1,807,951 2,080,523
Cash, end of period $1,988,419 $1,824,765
INTERWEST MEDICAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying unaudited
condensed consolidated financial statements contain all
adjustments necessary to present fairly the Company's financial
position as of June 30, 1995, and its results of operations
for the three and six months ended June 30, 1995 and 1994 and
cash flows for the six months ended June 30, 1995 and 1994.
The results of operations for the period presented are not
necessarily indicative of the results to be expected for a full
year.
2. Income (loss) per share was computed by dividing the net income
(loss) by the weighted average number of shares outstanding.
REVIEW BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
Weaver and Tidwell, L.L.P., Independent Certified Public
Accountants, have performed a review of the condensed consolidated
balance sheet as of June 30, 1995, and the condensed consolidated
statements of operations for the three and six months ended
June 30, 1995 and 1994, and cash flows for the three and six months
ended June 30, 1995 and 1994, in accordance with established
professional standards and procedures for such a review. All
adjustments or additional disclosures proposed by Weaver and
Tidwell, L.L.P. have been reflected in the data presented.
The report of Weaver and Tidwell, L.L.P. commenting upon their
review is included as Part I - Exhibit I.
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
To the Board of Directors
InterWest Medical Corporation
We have reviewed the condensed consolidated balance sheet of
InterWest Medical Corporation as of June 30, 1995, and the related
condensed consolidated statements of operations for the three and
six month periods ended June 30, 1995 and 1994 and cash flows for
the six months ended June 30, 1995 and 1994. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards
established by the American Institute of Certified Public
Accountants. A review of interim financial information consists of
obtaining an understanding of the system for the preparation of
interim financial information, applying analytical review
procedures to financial data and making inquiries of persons
responsible for financial and accounting matters. It is
substantially less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying condensed
consolidated statements referred to above, for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally
accepted auditing standards, the consolidated balance sheet as of
December 31, 1994, and the related consolidated statements of
operations, stockholders' equity and cash flows for the year then
ended (not presented herein); and in our report dated March 10,
1995, we expressed an unqualified opinion on those financial
statements. In our opinion, the information set forth in the
accompanying condensed consolidated balance sheet as of December
31, 1994, is fairly stated in all material respects in relation to
the consolidated balance sheet from which it has been derived.
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
July 20, 1995
PART I - EXHIBIT I
Item 2. Management's Discussion and Analysis of Financial
Position and Results of Operations.
Changes in Balance Sheet Accounts
Current assets were $3,641,528 and total assets were
$8,861,946 at June 30, 1995 as compared to $3,414,364 current
assets and $8,690,373 total assets at December 31, 1994. Current
liabilities were $1,022,089 at June 30, 1995 as compared to
$1,260,614 at December 31, 1994.
Results of Operations
For the Three Months Ended June 30, 1995, operating revenue
was $2,313,644; costs and expenses were $1,995,158, net income was
$211,253 and interest income was $18,701, as compared for the Three
Months Ended June 30, 1994, to operating revenue of $1,910,222,
costs and expenses of $1,831,398, net loss of ($32,086) and
interest income of $15,307.
For the Six Months Ended June 30, 1995, operating revenue was
$4,552,442, costs and expenses were $3,912,617, interest income was
$35,706 and net income was $423,590, as compared, for the Six
Months Ended June 30, 1994, to operating revenue of $4,053,770,
costs and expenses of $3,894,969, income from litigation settlement
of $6,706, interest income of $25,807, and net loss of ($61,186).
Cash Flows
For the Six Months Ended June 30, 1995, cash flows from
operating activities were $438,967, cash flows from investing
activities were ($253,101), cash flows from financing activities
were ($5,398), net increase in cash was $180,468, cash at the
beginning of the period was $1,807,951, and cash at the end of the
period was $1,988,419 as compared to the Six Months Ended June 30,
1994, to cash flows from operating activities of ($49,321), cash
flows from investing activities of ($201,598), cash flows from
financing activities of ($4,839), net decrease in cash of
($255,758), cash at the beginning of the period of $2,080,523, and
cash at the end of the period of $1,824,765.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Not applicable.
Item 2. Changes in Securities.
Not applicable.
Item 3. Defaults upon Senior Securities.
Not applicable.
Item 4. Submission of Matters to a Vote of Securities Holders.
Not applicable.
Item 5. Other Information.
Not applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) None.
(b) None.
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.
INTERWEST MEDICAL CORPORATION
By:
Arch B. Gilbert, President
Chief Executive Officer,
Chief Financial Officer and
Chief Accounting Officer
Date: July 27, 1995