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, 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. 17,080,461 shares of Common Stock,
$0.001 Par Value.
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1997 1996
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $2,099,908 $2,094,563
Accounts receivable - trade 1,783,002 1,631,439
Other receivables 42,156 28,906
Prepaid expenses 58,057 44,429
Total current assets 3,983,123 3,799,337
REAL ESTATE DEVELOPMENT AND CONSTRUCTION COSTS 33,582 121,582
PROPERTY AND EQUIPMENT, at cost
Land 176,442 176,442
Buildings and improvements 3,797,424 3,786,294
Equipment and furniture 647,600 645,876
Oil and gas properties (successful
effort method of accounting) 1,013,651 997,083
5,635,117 5,605,695
Less accumulated depreciation 1,628,554 1,501,730
4,006,563 4,103,965
OTHER ASSETS
Cash escrow accounts 38,176 34,975
Deferred financing costs, net 273,755 273,755
311,931 308,730
TOTAL ASSETS $8,335,199 $8,333,614
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 13,818 $ 13,818
Accounts payable 597,550 508,621
Accrued liabilities 553,696 685,729
Total current liabilities 1,165,064 1,208,168
LONG-TERM DEBT 4,542,339 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 ( 1,853,745) ( 1,906,428)
2,965,000 2,912,317
Less shares held in the treasury,
1997 2,919,539; 1996 2,882,964 337,204 332,524
2,627,796 2,579,793
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,335,199 $8,333,614
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1997 1996
Net patient service revenue $2,333,603 $2,326,706
Other revenue 138,551 44,584
Total revenue 2,472,154 2,371,290
Costs and expenses
Professional care of patients 1,325,940 1,199,567
General services 432,405 450,673
Administrative services 312,493 367,357
Other costs 113,124 54,672
Depreciation, depletion
and amortization 130,619 140,809
Income from operations 157,573 158,212
Other income (expenses)
Interest income 20,465 16,409
Interest expense ( 125,355) ( 125,802)
Income before taxes on income 52,683 48,819
Provision for income taxes - -
Net income $ 52,683 $ 48,819
Per share of common stock:
Weighted average number
of shares outstanding 17,098,748 17,739,390
Income per share $ .00 $ .00
INTERWEST MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31, 1997
1996
CASH FLOWS FROM OPERATING ACTIVITIES $ 64,761 ($ 38,940)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for acquisition of property ( 29,422) ( 59,539)
Advances to employees ( 22,000) ( 22,000)
Net cash used in
investing activities ( 51,422) ( 81,539)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of Treasury stock ( 4,680) ( 124,682)
Payments on borrowings ( 3,314) ( 2,867)
Net cash used in
financing activities ( 7,994) ( 127,549)
Net increase (decrease) in cash 5,345 ( 248,028)
Cash, beginning of period 2,094,563 2,096,886
Cash, end of period $2,099,908 $1,848,858
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, 1997, and its results of operations for
the three months ended March 31, 1997 and 1996 and cash flows for
the three months ended March 31, 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 March 31, 1997 and the condensed
consolidated statements of operations for the three months ended
March 31, 1997 and 1996, and cash flows for the three months
ended March 31, 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 March 31, 1997, and the
related condensed consolidated statements of operations for the
three month periods ended March 31, 1997 and 1996, and cash flows
for the three months ended March 31, 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
May 12, 1997
523 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 $3,983,123 and total assets were
$8,335,199 at March 31, 1997 as compared to $3,799,337 current
assets and $8,333,614 total assets at December 31, 1996. Current
liabilities were $1,165,064 at March 31 1997 as compared to
$1,208,168 at December 31, 1996. Long-term liabilities were
$4,542,339 at March 31, 1997 as compared to $4,545,653 at
December 31, 1996.
Results of Operations
For the Three Months Ended March 31, 1997, operating revenue
was $2,472,154; costs and expenses were $2,314,581, net income
was $52,683 and interest income was $20,465, as compared to the
Three Months Ended March 31, 1996 operating revenue of
$2,371,290, costs and expenses of $2,213,078, net income of
$48,819 and interest income of $16,409.
Cash Flows
For the Three Months Ended March 31, 1997, cash flows from
operating activities were $64,761, cash flows from investing
activities were ($51,422), cash flows from financing activities
were ($7,994), net increase in cash was $5,345, cash at the
beginning of the period was $2,094,563, and cash at the end of
the period was $2,099,908 as compared to the Three Months Ended
March 31, 1996, cash flows from operating activities of
($38,940), cash flows from investing activities of ($81,539),
cash flows from financing activities of ($127,549), net decrease
in cash of $248,028 , cash at the beginning of the period of
$2,096,886 and cash at the end of the period of $1,848,858.
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: , 1997
See Accompanying Notes to Condensed
Consolidated Financial Statements.
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