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 March 31, 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. 17,348,036 shares of Common Stock, $0.001
Par Value.
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1996 1995
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $1,848,858 $ 2,096,886
Accounts receivable - trade 1,473,486 1,428,778
Other receivables 22,155 -
Prepaid expenses 70,484 50,334
Total current assets 3,414,983 3,575,998
REAL ESTATE DEVELOPMENT
AND CONSTRUCTION COSTS 226,659 226,659
INVESTMENTS
Investment in joint venture 45,960 45,960
Capital stock, at cost
which approximates market 28,750 28,750
74,710 74,710
PROPERTY AND EQUIPMENT, at cost
Land 176,442 176,442
Buildings and improvements 3,784,989 3,784,989
Equipment and furniture 607,943 607,943
Oil and gas properties (successful
effort method of accounting) 1,291,315 1,231,776
5,860,689 5,801,150
Less accumulated depreciation 1,556,204 1,415,395
4,304,485 4,385,755
OTHER ASSETS
Cash escrow accounts 39,030 35,829
Deferred financing costs, net 281,927 281,927
320,957 317,756
TOTAL ASSETS $8,341,794 $8,580,878
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 12,385 $ 12,385
Accounts payable 594,634 617,874
Accrued liabilities 470,516 607,630
Total current liabilities 1,077,535 1,237,889
LONG-TERM DEBT 4,556,605 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 ( 1,808,327) ( 1,857,146)
3,010,418 2,961,599
Less shares held in the treasury,
1996 $2,651,964; 1995 $1,645,964 302,764 178,082
2,707,654 2,783,517
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $8,341,794 $8,580,878
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1996 1995
Net patient service revenue $2,326,706 $2,139,788
Other revenue 44,584 99,010
Total revenue 2,371,290 2,238,798
Costs and expenses
Professional care of patients 1,199,567 1,040,475
General services 450,673 374,929
Administrative services 367,357 276,892
Other costs 54,672 98,947
Depreciation, depletion
and amortization 140,809 126,216
Income from operations 158,212 321,339
Other income (expenses)
Interest income 16,409 17,005
Interest expense ( 125,802) ( 126,007)
Income before
taxes on income 48,819 212,337
Provision for income taxes - -
Net income $ 48,819 $ 212,337
Per share of common stock:
Weighted average number
of shares outstanding 17,739,390 18,561,703
Income per share $ .00 $ .01
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES ($ 38,940) $ 165,632
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for acquisition of property ( 59,539) ( 199,190)
Advances to employees ( 22,000) ( 22,000)
Distributions received
from joint venture - 12,500
Purchase of treasury stock ( 124,682) ( 3,489)
Net cash used in
investing activities ( 206,221) ( 212,179)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on borrowings ( 2,867) ( 2,662)
Net cash used in
financing activities ( 2,867) ( 2,662)
Net decrease in cash ( 248,028) ( 49,209)
Cash, beginning of period 2,096,886 1,807,951
Cash, end of period $1,848,858 $1,758,742
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 March 31, 1996, and its results of operations
and cash flows for the three months ended March 31, 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 (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 March 31, 1996, and the condensed consolidated
statements of operations for the three ended March 31, 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 March 31, 1996, and the related
condensed consolidated statements of operations for the three month
periods ended March 31, 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
May 8, 1996
501
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 $3,414,983 and total assets were
$8,341,794 at March 31, 1996 as compared to $3,575,998 current
assets and $8,580,878 total assets at December 31, 1995. Current
liabilities were $1,077,535 at March 31, 1996 as compared to
$1,237,889 at December 31, 1995. Long-term liabilities were
$4,556,605 at March 31, 1996 as compared to $4,559,472 at
December 31, 1995.
Results of Operations
For the Three Months Ended March 31, 1996, operating revenue
was $2,371,290; costs and expenses were $2,213,078, and net income
was $48,819 as compared to operating revenues of $2,238,798, costs
and expenses of $1,917,459, and net income was $212,337 for the
Three Months Ended March 31, 1995.
Cash Flows
For the Three Months Ended March 31, 1996, cash flows from
operating activities were ($38,940), cash flows from investing
activities were ($206,221), cash flows from financing activities
were ($2,867), cash at the beginning of the period was $2,096,886,
and cash at the end of the period was $1,848,858 as compared to
cash flows from operating activities of $165,632, cash flows from
investing activities of ($212,179), cash flows from financing
activities of ($2,662), and cash at the beginning of the period of
$1,807,951, and cash at the end of the period of $1,758,742 for the
Three Months Ended March 31, 1995.
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: May 10, 1996
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