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, 1997 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. 16,819,961 shares of Common Stock, $0.001 Par
Value.
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1997 1996
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $2,818,721 $2,094,563
Accounts receivable - trade 1,619,679 1,631,439
Other receivables 40,894 28,906
Prepaid expenses 45,693 44,429
Total current assets 4,524,987 3,799,337
REAL ESTATE DEVELOPMENT AND CONSTRUCTION COSTS 33,582 121,582
PROPERTY AND EQUIPMENT, at cost
Land 191,442 176,442
Buildings and improvements 3,851,318 3,786,294
Equipment and furniture 674,158 645,876
Oil and gas properties (successful
effort method of accounting) 981,202 997,083
5,698,120 5,605,695
Less accumulated depreciation 1,753,719 1,501,730
3,944,401 4,103,965
OTHER ASSETS
Cash escrow accounts 41,377 34,975
Deferred financing costs, net 273,755 273,755
315,132 308,730
TOTAL ASSETS $8,818,102 $8,333,614
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 13,818 $ 13,818
Accounts payable 915,194 508,621
Accrued liabilities 524,779 685,729
Total current liabilities 1,453,791 1,208,168
LONG-TERM DEBT 4,538,933 4,545,653
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 ( 1,624,272) ( 1,906,428)
3,194,473 2,912,317
Less shares held in the treasury,
1997 3,180,039; 1996 2,882,964 369,095 332,524
2,825,378 2,579,793
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,818,102 $8,333,614
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
Net patient service revenue $2,270,307 $2,215,633 $4,603,910 $4,542,339
Other revenue 273,362 72,520 411,913 117,104
Total revenue 2,543,669 2,288,153 5,015,823 4,659,443
Costs and expenses
Professional care
of patients 1,315,594 1,205,646 2,641,534 2,405,213
General services 422,839 460,734 855,244 911,407
Administrative services 319,380 287,313 631,873 654,670
Other costs 37,430 66,403 150,554 121,075
Depreciation, depletion
and amortization 125,165 144,707 255,784 285,516
Income from
operations 323,261 123,350 480,834 281,562
Other income (expenses)
Interest income 31,476 16,175 51,941 32,584
Interest expense ( 125,264) ( 125,514) ( 250,619) ( 251,316)
Income before
taxes on income 229,473 14,011 282,156 62,830
Provision for income taxes - - - -
Net income $ 229,473 $ 14,011 $ 282,156 $ 62,830
Per share of common stock:
Weighted average
number of shares
outstanding 16,938,414 17,313,036 17,018,581 17,526,213
Income per share $ .01 $ .00 $ 0.02 $ 0.00
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30, 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES $ 649,554 $ 48,394
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of property 289,672 -
Distributions received
from joint venture - 80,000
Payments for
acquisition of property ( 143,375) ( 145,518)
Net changes in escrow accounts ( 6,402) ( 6,402)
Advances to employees ( 22,000) ( 22,000)
Net cash provided by (used in)
investing activities 117,895 ( 93,920)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of Treasury stock ( 36,571) ( 131,187)
Payments on borrowings ( 6,720) ( 6,024)
Net cash used in
financing activities ( 43,291) ( 137,211)
Net increase (decrease) in cash 724,158 ( 182,737)
Cash, beginning of period 2,094,563 2,096,886
Cash, end of period $2,818,721 $1,914,149
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, 1997, and its results of operations for
the three and six months ended June 30, 1997 and 1996 and cash
flows for the six months ended June 30, 1997 and 1996. 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 June 30, 1997 and the
condensed consolidated statements of operations for the
three and six months ended June 30, 1997 and 1996, and cash
flows for the six months ended June 30, 1997 and 1996, 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,
1997, and the related condensed consolidated statements
of operations for the three and six month periods ended
June 30, 1997 and 1996, and cash flows for the six
months ended June 30, 1997 and 1996. 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, 1996, 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 7,
1997, 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, 1996, 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
August 11, 1997
529 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 $4,524,987 and total assets were $8,812,102
at June 30, 1997 as compared to $3,799,337 current assets and
$8,333,614 total assets at December 31, 1996. Current
liabilities were $1,453,791 at June 30 1997 as compared to
$1,208,168 at December 31, 1996.
Results of Operations
For the Three Months Ended June 30, 1997, operating revenue was
$2,543,669; costs and expenses were $2,220,408, net income was
$229,473 and interest income was $31,476, as compared to the
Three Months Ended June 30, 1996 operating revenue of $2,288,153,
costs and expenses of $2,164,803, net income of $14,011 and
interest income of $16,175.
For the Six Months Ended June 30, 1997, operating revenue was
$5,015,823, costs and expenses were $4,534,989, interest income
was $51,941 and net income was $282,156, as compared, for the Six
Months Ended June 30, 1996, to operating revenue of $4,659,443,
costs and expenses of $4,377,881, interest income of $32,584, and
net income of $62,830.
Cash Flows
For the Six Months Ended June 30, 1997, cash flows from operating
activities were $649,554, cash flows from investing activities
were $117,895, cash flows from financing activities were
($43,291), net increase in cash was $724,158, cash at the
beginning of the period was $2,094,563, and cash at the end of
the period was $2,818,721 as compared to the Six Months Ended
June 30, 1996, to cash flows from operating activities of
$48,394, cash flows from investing activities of ($93,920), cash
flows from financing activities of ($137,211), net decrease in
cash of ($182,737), cash at the beginning of the period of
$2,096,886 and cash at the end of the period of $1,914,149.
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: August 13, 1997
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