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 September 30, 1996 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. 17,223,036 shares of Common Stock,
$0.001
Par Value.
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1996 1995
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $ 2,156,617 $ 2,096,886
Accounts receivable - trade 1,354,355 1,428,778
Other receivables 22,156 -
Prepaid expenses 66,806 50,334
Total current assets 3,599,934 3,575,998
REAL ESTATE DEVELOPMENT
AND CONSTRUCTION COSTS 126,811 226,659
INVESTMENTS
Investment in joint venture 11,715 45,960
Capital stock, at cost
which approximates market 28,750 28,750
40,465 74,710
PROPERTY AND EQUIPMENT, at cost
Land 176,442 176,442
Buildings and improvements 3,784,989 3,784,989
Equipment and furniture 648,479 607,943
Oil and gas properties (successful
effort method of accounting) 1,373,763 1,231,776
5,983,673 5,801,150
Less accumulated depreciation 1,847,137 1,415,395
4,136,536 4,385,755
OTHER ASSETS
Cash escrow accounts 45,432 35,829
Deferred financing costs, net 281,927 281,927
327,359 317,756
TOTAL ASSETS $ 8,231,105 $8,580,878
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 12,385$
12,385
Accounts payable 500,729 617,874
Accrued liabilities 396,181 607,630
Total current liabilities 909,295 1,237,889
LONG-TERM DEBT 4,550,311 4,559,472
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 ( 1,728,497) ( 1,857,146)
3,090,248 2,961,599
Less shares held in the treasury,
1996 2,776,964; 1995 1,645,964 318,749 178,082
2,771,499 2,783,517
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 8,231,105 $8,580,878
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
1996 1995 1996 1995
Net patient
service revenue $2,271,679 $2,251,989 $6,814,018 $6,630,407
Other revenue 152,593 86,450 269,697 260,474
Total revenue 2,424,272 2,338,439 7,083,715 6,890,881
Costs and expenses
Professional care
of patients 1,216,091 1,162,540 3,621,304 3,303,382
General services 500,298 457,431 1,411,705 1,182,540
Administrative
services 255,486 289,011 910,156 847,864
Other costs 133,512 94,325 254,587 327,121
Depreciation,
depletion and
amortization 146,226 136,354 431,742 391,371
Income from
operations 172,659 198,778 454,221 838,603
Other income (expenses)
Interest income 18,691 18,484 51,275 54,190
Interest expense( 125,531)( 125,857) ( 376,847)
( 377,798)
Income before
taxes on income 65,819 91,405 128,649 514,995
Provision for
income taxes - - - -
Net income $ 65,819 $ 91,405 $ 128,649 $ 514,995
Per share of
common stock:
Weighted average
number of shares
outstanding 17,260,536 18,496,369 17,437,654 18,527,035
Income per share $ 0.00 $ 0.00 $ 0.01 $ 0.03
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months
Ended
September
30,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES $ 341,924 $ 632,334
CASH FLOWS FROM INVESTING ACTIVITIES
Distributions received
from joint venture 81,761 69,800
Payments for acquisition of property ( 182,523) ( 445,649)
Net changes in escrow accounts ( 9,603) ( 9,603)
Advances to employees ( 22,000) ( 22,000)
Net cash used in
investing activities ( 132,365) ( 407,452)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of Treasury stock ( 140,667) ( 10,596)
Payments on borrowings ( 9,161) ( 8,210)
Net cash used in
financing activities ( 149,828) ( 18,806)
Net increase in cash 59,731 206,076
Cash, beginning of period 2,096,886 1,807,951
Cash, end of period $2,156,617 $2,014,027
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 September 30, 1996, and its results of
operations for the three and nine months ended September 30,
1996 and 1995 and cash flows for the nine months ended
September 30, 1996 and 1995. The results of operations for
the
period presented are not necessarily indicative of the results
to be expected for a full year.
2. Income per share was computed by dividing the net income 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 September 30, 1996 and the condensed
consolidated statements of operations for the three and nine
months
ended September 30, 1996 and 1995, and cash flows for the nine
months ended September 30, 1996 and 1995, 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 September 30,
1996, and the related condensed consolidated statements
of operations for the three and nine month periods
ended
September 30, 1996 and 1995, and cash flows for the
nine
months ended September 30, 1996 and 1995. 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, 1995, 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 1,
1996,
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, 1995, 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
November 4, 1996
510 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 $3,599,934 and total assets were
$8,231,105 at September 30, 1996 as compared to $3,575,998
current
assets and $8,580,878 total assets at December 31, 1995. Current
liabilities were $909,295 at September 30, 1996 as compared to
$1,237,889 at December 31, 1995.
Results of Operations
For the Three Months Ended September 30, 1996, operating
revenue was $2,424,272; costs and expenses were $2,251,613, net
income was $65,819 and interest income was $18,691, as compared
to
the Three Months Ended September 30, 1995 operating revenue of
$2,338,439, costs and expenses of $2,139,661, net income of
$91,405
and interest income of $18,484.
For the Nine Months Ended September 30, 1996, operating
revenue was $7,083,715, costs and expenses were $6,629,494,
interest income was $51,275 and net income was $128,649, as
compared to the Nine Months Ended September 30, 1995, to
operating
revenue of $6,890,881, costs and expenses of $6,052,278, interest
income of $54,190, and net income of $514,995.
Cash Flows
For the Nine Months Ended September 30, 1996, cash flows from
operating activities were $341,924, cash flows from investing
activities were ($132,365), cash flows from financing activities
were ($149,828), net increase in cash was $59,731, cash at the
beginning of the period was $2,096,886, and cash at the end of
the
period was $2,156,617 as compared to the Nine Months Ended
September 30, 1995, cash flows from operating activities of
$632,334, cash flows from investing activities of ($407,452),
cash
flows from financing activities of ($18,806), net increase in
cash
of $206,076, cash at the beginning of the period of $1,807,951
and
cash at the end of the period of $2,014,027.
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 half 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: November 6, 1996
