<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
/X/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended June 30, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
------------------- ------------------
Commission file number 33-88216
------------------------------------------------
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
SUNRISE MEDICAL INC. PROFIT SHARING/SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Sunrise Medical Inc.
2382 Faraday Avenue, Suite 200
Carlsbad, California 92008
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
<TABLE>
<CAPTION>
PAGE
<S> <C>
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . 1
Financial Statements:
Statements of Net Assets Available for Benefits at June 30, 1998 and
1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Statement of Changes in Net Assets Available for Benefits for the year
ended June 30, 1998 . . . . . . . . . . . . . . . . . . . . . . . 3
Statement of Changes in Net Assets Available for Benefits for the year
ended June 30, 1997 . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . 5
Supplemental Schedules:
Schedule I - Line 27a - Schedule of Assets Held for Investment Purposes
at June 30, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . 10
Schedule II - Line 27d - Schedule of Reportable Transactions
for the year ended June 30, 1998 . . . . . . . . . . . . . . . . . 11
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees of Sunrise Medical Inc. Profit Sharing/Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of the Sunrise Medical Inc. Profit Sharing/Savings Plan (the Plan)
as of June 30, 1998 and 1997, and the related statements of changes in net
assets available for benefits for each of the years in the two-year period
ended June 30, 1998. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as
of June 30, 1998 and 1997, and the changes in net assets available for
benefits for each of the years in the two-year period ended June 30, 1998 in
conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for
the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. These
supplemental schedules are the responsibility of the Plan's management. The
Fund Information in the statements of changes in net assets available for
benefits is presented for purposes of additional analysis rather than to
present the changes in net assets available for benefits for each fund. The
supplemental schedules and Fund Information have been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, are fairly stated in all material respects in relation
to the basic financial statements taken as a whole.
/s/ KPMG Peat Marwick LLP
San Diego, California
December 18, 1998
1
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Statements of Net Assets Available for Benefits
June 30, 1998 and 1997
<TABLE>
<CAPTION>
ASSETS 1998 1997
----------- ----------
<S> <C> <C>
Investments, at fair value (note 3) $54,776,075 46,173,715
Receivables:
Employer's contribution 2,246,877 2,401,219
Participants' contributions 291,787 284,756
----------- ----------
Net assets available for benefits $57,314,739 48,859,690
----------- ----------
----------- ----------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits
For the year ended June 30, 1998
<TABLE>
<CAPTION>
American
Express IDS IDS New IDS IDS
Trust Income Mutual Dimenstions Stock Selective
Fund II Fund Fund Fund Fund
------------ --------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net gain (loss) on sale of investments and
unrealized appreciation (depreciation), net $ 826,335 (87,485) 2,686,696 334,834 39,015
Interest and dividends 41 1,167,074 1,141,639 607,880 142,237
----------- --------- ---------- --------- ---------
Net investment income (loss) 826,376 1,079,589 3,828,335 942,714 181,252
Contributions:
Employer's 688,021 486,122 834,180 342,342 161,447
Participants' 847,555 686,525 1,310,346 608,620 238,335
Other (note 5) 331,529 - - - -
----------- --------- ---------- --------- ---------
Total additions 2,693,481 2,252,236 5,972,861 1,893,676 581,034
Deductions from net assets attributed to:
Vested benefits paid to participants 2,437,387 869,638 1,444,473 429,883 215,454
----------- --------- ---------- --------- ---------
Net increase (decrease) before interfund transfers 256,094 1,382,598 4,528,388 1,463,793 365,580
Interfund Transfers (1,428,836) (253,631) 469,370 224,492 (196,539)
Net increase (decrease) (1,172,742) 1,128,967 4,997,758 1,688,285 169,041
Net assets available for benefits:
Beginning of year 15,039,933 7,809,160 13,743,354 3,956,459 2,022,038
----------- --------- ---------- --------- ---------
End of year $13,867,191 8,938,127 18,741,112 5,644,744 2,191,079
----------- --------- ---------- --------- ---------
----------- --------- ---------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
IDS Franklin Sunrise Medical, American
Templeton Inc. Pooled Express Trust
Mutual Common Stock Equity Index Loans to
Shares Fund Fund Fund II Pariticipants Total
------------- ---------------- -------------- ------------- -----
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net gain (loss) on sale of investments and
unrealized appreciation (depreciation), net (998) (33,836) - - 3,764,561
Interest and dividends - 12,115 - 197,647 3,268,633
------------ ---------- ---------- --------- ----------
Net investment income (loss) (998) (21,721) - 197,647 7,033,194
Contributions:
Employer's 49,791 391,874 17,754 - 2,971,531
Participants' 40,724 496,521 - - 4,228,626
Other (note 5) - - - - 331,529
------------ ---------- ---------- --------- ----------
Total additions 89,517 866,674 17,754 197,647 14,564,880
Deductions from net assets attributed to:
Vested benefits paid to participants 14,521 480,750 - 217,725 6,109,831
------------ ---------- ---------- --------- ----------
Net increase (decrease) before interfund transfers 74,996 385,924 17,754 (20,078) 8,455,049
Interfund Transfers 508,579 (847,061) - 1,523,626 -
Net increase (decrease) 583,575 (461,137) 17,754 1,503,548 8,455,049
Net assets available for benefits:
Beginning of year - 5,091,310 - 1,197,436 48,859,690
------------ ---------- ---------- --------- ----------
End of year 583,575 4,630,173 17,754 2,700,984 57,314,739
------------ ---------- ---------- --------- ----------
------------ ---------- ---------- --------- ----------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits
For the year ended June 30, 1997
<TABLE>
<CAPTION>
American
Express IDS IDS New IDS IDS
Trust Income Mutual Dimenstions Stock Selective
Fund II Fund Fund Fund Fund
------------ ---------- ----------- ------ ---------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net gain (loss) on sale of investments and
unrealized appreciation (depreciation), net $ 848,330 538,533 2,255,631 516,778 2,182
Interest and dividends - 717,359 455,126 220,863 143,535
------------ --------- ---------- --------- ---------
Net investment income (loss) 848,330 1,255,892 2,710,757 737,641 145,717
Contributions:
Employer's 1,060,454 484,526 724,917 318,808 142,626
Participants' 917,590 643,913 1,147,515 478,188 189,460
------------ --------- ---------- --------- ---------
Total additions 2,826,374 2,384,331 4,583,189 1,534,637 477,803
Deductions from net assets attributed to:
Vested benefits paid to participants 2,137,874 790,485 1,233,344 448,564 226,006
------------ --------- ---------- --------- ---------
Net increase (decrease) before interfund transfers 688,500 1,593,846 3,349,845 1,086,073 251,797
Interfund transfers 98,307 (60,095) (106,366) 106,532 (41,552)
------------ --------- ---------- --------- ---------
Net increase (decrease) 786,807 1,533,751 3,243,479 1,192,605 210,245
Net assets available for benefits:
Beginning of year 14,253,126 6,275,409 10,499,875 2,763,854 1,811,793
------------ --------- ---------- --------- ---------
End of year $ 15,039,933 7,809,160 13,743,354 3,956,459 2,022,038
------------ --------- ---------- --------- ---------
------------ --------- ---------- --------- ---------
Sunrise Medical,
Inc. Pooled
Common Stock Loans to
Fund Pariticipants Total
---------------- ------------- ----------
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net gain (loss) on sale of investments and
unrealized appreciation (depreciation), net $ (1,000,092) - 3,161,362
Interest and dividends 16,605 99,577 1,653,065
------------- ---------- -----------
Net investment income (loss) (983,487) 99,577 4,814,427
Contributions:
Employer's 452,310 - 3,183,641
Participants' 598,841 - 3,975,507
------------- ---------- -----------
Total additions 67,664 99,577 11,973,575
Deductions from net assets attributed to:
Vested benefits paid to participants 367,021 136,731 5,340,025
------------- ---------- -----------
Net increase (decrease) before interfund transfers (299,357) (37,154) 6,633,550
Interfund transfers (194,987) 198,161 -
------------- ---------- -----------
Net increase (decrease) (494,344) 161,007 6,633,550
Net assets available for benefits:
Beginning of year 5,585,654 1,036,429 42,226,140
------------- ---------- -----------
End of year $ 5,091,310 1,197,436 48,859,690
------------- ---------- -----------
------------- ---------- -----------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Notes to Financial Statements
June 30, 1998 and 1997
(1) DESCRIPTION OF PLAN
The following description of the Sunrise Medical Inc. Profit
Sharing/Savings Plan (the Plan) is provided for general information
purposes only. The Plan is sponsored by Sunrise Medical Inc. and
certain of its subsidiaries (the company), and the Plan's trustee
and recordkeeper is American Express Trust Company (American
Express), formerly IDS Bank & Trust (IDS). Participants should
refer to the Plan document for a more complete description of the
Plan's provisions.
GENERAL
The Plan is a defined contribution plan, and is generally available
to all U.S. employees who have completed 60 days of service with the
company. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS
The following types of contributions are allowable under the Plan:
- Salary Deferral Contributions -- Participants may contribute
up to 14% of their pre-tax earnings, as defined in the Plan
document, subject to limitations. A participant's total
tax-deferred contribution cannot exceed $10,000 in calendar
year 1998 and $9,500 in calendar year 1997.
- Matching Employer Contributions -- The company contributes
matching amounts each Plan year. Salary deferral
contributions were matched 100% up to a maximum of $400 per
participant for the Plan years ended June 30, 1998 and 1997.
- Discretionary Employer Contributions -- The company may make
an additional profit sharing contribution to those eligible
participants who have completed one year of service and are
actively employed as of the last day of the Plan year. This
contribution is limited to a maximum of 6% of the
participant's eligible earnings and is allocated in
proportion to each participant's earnings. For the year ended
June 30, 1998 and 1997, the company made an additional profit
sharing contribution equal to 4% of each participant's eligible
earnings for all participants employed on the last day of the
Plan's year end.
- Post-tax Participant Contributions -- Post-tax contributions
of up to 10% of a participant's earnings may be contributed
to the Plan.
- Rollover Contributions -- Amounts distributed to
participants from other qualified employee benefit plans may
be rolled into the Plan.
All contributions are allocated to the Plan's investment funds at
the direction of the participants.
The total annual addition to a participant's account may not exceed
the lesser of $30,000 or 25% of the participant's taxable net
earnings.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's
contributions and an allocation of (a) the Company's contribution
(matching employer and discretionary employer) and (b) fund
earnings. Allocations are based on participant earnings or account
balances, as defined in the Plan
5
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Notes to Financial Statements
document. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's vested account.
VESTING
Participants are immediately vested in their contributions,
matching employer contributions, rollover contributions and related
earnings thereon.
Full vesting in the discretionary employer contributions occurs at
the earliest of the following dates:
- Completion of five vesting years of service;
- Participant's death;
- Participant becomes disabled as defined under the Plan;
- Participant's normal retirement date; or
- Upon termination or partial termination of the Plan.
Participants become partially vested in the discretionary employer
contributions at 25% increments per plan year after completing
1,000 hours of service. Union discretionary contributions are
vested after five years of service.
INVESTMENT OPTIONS
Participants may allocate their contributions to any combination of
the following investment choices managed by American Express:
<TABLE>
<CAPTION>
NAME OF MUTUAL FUND TYPE OF INVESTMENTS
- ------------------------------- ---------------------------------------
<S> <C>
American Express Trust A collective investment fund that seeks
Income Fund II a steady rate of return by investing in
Guaranteed Investment Contracts (GICs)
and money market instruments.
IDS Mutual Fund A growth and income fund that invests
in bonds, common stocks and notes.
IDS New Dimensions Fund An aggressive growth fund that invests
primarily in common stocks of companies
with excellent technology, marketing, or
management.
6
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Notes to Financial Statements
<CAPTION>
NAME OF MUTUAL FUND TYPE OF INVESTMENTS
- ------------------------------- ---------------------------------------
IDS Stock Fund The fund seeks current income and
growth of capital through investments
in common stocks of companies.
IDS Selective Fund The fund seeks to provide current
income with the preservation of capital
and invests in the four highest grades
of corporate bonds, government
securities, and money market
securities.
IDS Franklin Templeton The fund seeks to achieve capital
Mutual Shares Fund appreciation and income growth by
investing primarily in common and
preferred stocks, bonds and convertible
securities. The fund may also invest
in foreign securities.
Sunrise Medical Inc. Pooled The fund aims for long-term capital
Common Stock Fund appreciation with 90% to 95% of the
fund invested in the stock of Sunrise
Medical Inc.
American Express Trust Equity The fund's goal is to achieve a rate
Index Fund II of return as close as possible to the
return of the Standard & Poor's 500 Index.
</TABLE>
LOANS TO PARTICIPANTS
Participants may borrow from their fund accounts a
minimum of $500 up to a maximum equal to the lesser of $50,000
reduced by the highest outstanding loan balance during the previous
twelve months or 50% of their vested account balance. Loan
transactions are treated as a transfer to (from) the investment
fund from (to) the Loans to Participants fund. Loan terms range
from 1 month to 5 years or up to 20 years for the purchase of a
primary residence. The loans are secured by the balance in the
participant's account and bear interest at a rate equal to prime
interest rate plus two percentage points. Interest rates range
from approximately 9.5% to 11% at June 30, 1998. Principal and
interest are paid ratably through payroll deductions.
PAYMENT OF BENEFITS
Benefits to participants or beneficiaries generally are payable
as a lump sum equal to the value of their vested account upon
retirement, disability, death or termination of the participant
or termination of the Plan. Additionally, participants may
withdraw their salary deferral contributions during financial
hardships, as defined in the Plan document.
INVESTMENT IN LIFE INSURANCE
Participants, after five years of service, may elect to have all
or a portion of their account held and invested in one or more
life insurance policies, subject to the rules of the Plan.
7
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Notes to Financial Statements
ADMINISTRATIVE EXPENSES
Plan administrative expenses are funded first by participant fees
and then by forfeitures. Plan administrative expenses were
$121,108 and $96,021 in 1998 and 1997, respectively. Forfeitures
totaled $88,504 and $68,574 for the years ended June 30, 1998 and
1997, respectively.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared using the
accrual method of accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Fair value is
determined by American Express based on quoted market prices for
the underlying assets within each fund and based on contract
value for benefit responsive guaranteed investment contracts from
insurance companies. Company stock is valued using quoted market
prices. Loans to participants are valued at cost, which
approximates fair value. Life insurance contracts are allocated
contracts, the premiums for which are treated as distributions, with
the cash value excluded from Plan assets.
Purchases and sales of securities are recorded on a trade-date
basis.
USE OF ESTIMATES
The plan sponsor and administrator have made a number of
estimates and assumptions relating to the reporting of net assets
available for benefits and changes in net assets available for
benefits to prepare these financial statements in conformity with
generally accepted accounting principles. Actual results could
differ from those estimates.
(3) INVESTMENTS
The Plan's investments consist primarily of collective investment
funds and common stock. The Plan's investments in collective
investment funds are held by the American Express Trust Income
Fund II, IDS Mutual Fund, IDS New Dimensions Fund, IDS Stock
Fund, IDS Selective Fund, IDS Franklin Templeton Mutual Shares
Fund and American Express Trust Money Market Fund I, which are
IDS-administered trust funds. Investments in the Sunrise Medical
Inc. Pooled Common Stock Fund primarily consist of the common
stock of Sunrise Medical Inc. The Plan's investment consist of
the following at June 30:
<TABLE>
<CAPTION>
1998 1997
----------- -----------
<S> <C> <C>
American Express Trust Income Fund II * $13,385,132 $14,233,678
IDS Mutual Fund * 8,393,516 7,267,100
IDS New Dimensions Fund * 18,060,706 13,175,109
IDS Stock Fund * 5,354,571 3,682,194
IDS Selective Fund 2,073,482 1,907,071
IDS Franklin Templeton Mutual Shares Fund 528,437 -
Sunrise Medical Inc. Pooled Common Stock
Fund * 4,072,126 4,474,132
American Express Trust Money Market Fund I 206,867 236,742
Loans to participants 2,701,238 1,197,689
----------- -----------
$54,776,075 $46,173,715
----------- -----------
----------- -----------
</TABLE>
* Represents more than 5% of total plan assets
8
<PAGE>
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Notes to Financial Statements
(4) PLAN TERMINATION
Although it has not expressed any intent to do so, the company
has the right under the Plan to discontinue its contributions at
any time and to terminate the Plan, subject to the provisions of
ERISA. In the event of Plan termination, or partial termination,
participants will become 100% vested in their accounts.
(5) OTHER CONTRIBUTIONS
Included in other contributions for the year ended June 30, 1998,
are the proceeds of the settlement of a Class Action Securities
Litigation Suit. The proceeds will be allocated to current and former
participants who purchased the common stock of the company through
the Plan during the period from October 27, 1993 to October 26, 1995
if they continued to own the stock on October 27, 1995.
(6) INCOME TAXES
The Internal Revenue Service has determined and informed the
company by a letter dated April 21, 1997, that the Plan is
designed in accordance with applicable sections of the Internal
Revenue Code (IRC). The Plan has been amended since receiving
the determination letter. However, the Plan administrator and
the Plan's tax counsel believe that the Plan is designed and is
currently being operated in compliance with the applicable
requirements of the IRC.
9
<PAGE>
SCHEDULE 1
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Line 27a - Schedule of Assets Held for Investment Purposes
June 30, 1998
<TABLE>
<CAPTION>
IDENTITY OF ISSUE, DESCRIPTION OF INVESTMENT, INCLUDING
BORROWER, LESSOR MATURITY DATE, RATE OF INTEREST, COLLATERAL, CURRENT
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
--------------------------------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
* American Express Trust Mutual Fund $11,546,511 $13,385,132
Income Fund II 747,356 shares at $17.91 per share
* IDS Mutual Fund Mutual Fund 7,696,359 8,393,516
585,363 shares at $14.34 per share
* IDS New Dimensions Fund Mutual Fund 12,194,495 18,060,706
648,243 shares at $27.86 per share
* IDS Stock Fund Mutual Fund 4,456,286 5,354,571
195,451 shares at $27.40 per share
* IDS Selective Fund Mutual Fund 2,053,435 2,073,482
224,183 shares at $9.25 per share
* IDS Franklin Templeton Mutual Fund 533,775 528,437
Mutual Shares Fund 23,351 shares at $22.63 per share
* Sunrise Medical Inc. Sunrise Medical Inc. Pooled Common Stock Fund 5,604,435 4,072,126
271,475 shares at $15.00 per share
* American Express Trust Money Market 206,867 206,867
Money Market Fund I 206,867 shares at $1.00 per share
* Loans to participants Interest rate ranges from 9.5% to 11% 2,701,238 2,701,238
----------- -----------
Balance at June 30, 1998 $46,993,401 $54,776,075
----------- -----------
----------- -----------
</TABLE>
* Party-in-interest
See accompanying independent auditor's report.
10
<PAGE>
SCHEDULE 2
SUNRISE MEDICAL INC.
PROFIT SHARING/SAVINGS PLAN
Line 27d - Schedule of Reportable Transactions
For the year ended June 30, 1998
<TABLE>
<CAPTION>
CURRENT
EXPENSES VALUE OF
IDENTITY INCURRED ASSET ON NET
OF PARTY DESCRIPTION PURCHASE SELLING LEASE WITH COST OF TRANSACTION GAIN OR
INVOLVED OF ASSET PRICE (1) PRICE (1) RENTAL TRANSACTION ASSET (1) DATE (1) (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
IDS Mutual Fund $2,486,083 2,486,083
1,272,183 1,253,400 1,272,183 18,783
American Trust Income 2,870,665 2,870,665
Express Fund II $4,549,412 4,423,286 4,549,413 $126,127
IDS New Dimensions 5,083,516 5,083,516
Fund 2,882,795 2,706,587 2,882,795 176,208
IDS Stock Fund 2,067,838 2,067,838
726,975 701,046 726,975 25,929
Sunrise Pooled Common 3,113,232 3,113,232
Medical Inc. Stock Fund 1,076,202 1,069,847 1,076,202 6,355
American Trust Money 2,407,151 2,407,151
Express Market Fund I 2,436,423 2,436,423 2,436,423
</TABLE>
(1) Series of transactions
See accompanying independent auditor's report.
11
<PAGE>
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
December 18, 1998 Sunrise Medical Inc. Profit Sharing/Savings Plan
------------------------------------------------
(Name of Plan)
/s/ Richard H. Chandler
------------------------------------------------
Richard H. Chandler
Plan Administration Committee Member
/s/ Ted N. Tarbet
------------------------------------------------
Ted N. Tarbet
Plan Administration Committee Member
12
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NUMB DESCRIPTION
- ------------------- -------------------------------------------------
<S> <C>
23.1 Consent of KPMG Peat Marwick LLP
</TABLE>
<PAGE>
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
Sunrise Medical Inc.:
We consent to the incorporation by reference in the Registration Statement
(No. 33-88216) on Form S-8 of Sunrise Medical Inc. of our report dated
December 18, 1998, relating to the financial statements and related schedules
of the Sunrise Medical Inc. Profit Sharing/Savings Plan as of June 30, 1998
and 1997 and for each of the years in the two-year period ended June 30,
1998, which report appears in the June 30, 1998 annual report on Form 11-K of
the Sunrise Medical Inc. Profit Sharing/Savings Plan.
/s/ KPMG Peat Marwick LLP
San Diego, California
December 23, 1998
