INDEX
PART I - FINANCIAL INFORMATION
Item 1 - FINANCIAL STATEMENTS:
UNAUDITED CONSOLIDATED CONDENSED
BALANCE SHEET as of February 29, 1996
and AUDITED CONSOLIDATED CONDENSED
BALANCE SHEET as of May 31, 1995
CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS for the three and nine
months ended February 29, 1996 and
February 28, 1995
CONSOLIDATED CONDENSED STATEMENTS
OF CASH FLOWS for the nine months
ended February 29, 1996 and
February 28, 1995
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS
Item 2 - MANAGEMENT'S DISCUSSION AND
ANALYSIS OR PLAN OF OPERATION
PART II- OTHER INFORMATION
Item 1 - LEGAL PROCEEDINGS
Item 2 - CHANGES IN SECURITIES
Item 3 - DEFAULTS UPON SENIOR SECURITIES
Item 4 - SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS
Item 5 - OTHER INFORMATION
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K:
Exhibit 27 - Financial Data Schedule
(Electronic Filing Only)
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1- FINANCIAL STATEMENTS
SANDATA, INC.AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
<CAPTION>
UNAUDITED AUDITED
February 29, May 31,
1996 1995
----------- --------
<S> <C> <C>
ASSETS:
CURRENT ASSETS
Cash and cash equivalents $ 186,246 $ 102,613
Accounts receivable - net
of allowance for doubtful
accounts of $251,000 and
$304,000 at February 29,
1996 and May 31, 1995,
respectively 1,176,835 784,808
Receivables from affiliates 0 1,058,757
Receivable from former
affiliate 36,462 77,459
Note receivable from former
affiliate - net of allowance
for doubtful accounts of
$119,000 and $-0- at February
29, 1996 and May 31, 1995,
respectively 137,914 240,000
Note receivable - officer
(Note 2) 0 150,000
Inventories 50,298 26,222
Income taxes receivable 0 66,000
Prepaid expenses and other
current assets 154,918 88,153
--------- ---------
TOTAL CURRENT ASSETS 1,742,673 2,594,012
FIXED ASSETS, NET 9,182,645 3,564,208
OTHER ASSETS
Note receivable from former
affiliate - net of allowance
for doubtful accounts of $-0-
and $119,000 at February 29,
1996 and May 31, 1995,
respectively 0 58,199
Advances to affiliates 25,063 61,000
Notes receivable - officers 102,867 102,867
Cash surrender value of
officer's life insurance,
security deposits and other 360,838 327,766
---------- ----------
TOTAL ASSETS $11,414,086 $ 6,708,052
See notes to consolidated condensed financial statements
</TABLE>
<TABLE>
SANDATA, INC.AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
<CAPTION>
UNAUDITED AUDITED
February 29, May 31,
1996 1995
----------- --------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS
EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 782,927 $ 601,106
Current portion of long-term
debt 709,635 250,000
Deferred/unearned revenue
33,498 34,751
Due to affiliate 81,407 -
Deferred income 217,927 43,821
--------- ---------
TOTAL CURRENT LIABILITIES 1,825,394 1,029,678
LONG-TERM DEBT 5,461,153 1,679,166
DEFERRED INCOME 245,802 205,642
DEFERRED INCOME TAXES 98,952 140,444
--------- ---------
TOTAL LIABILITIES 7,631,301 3,054,930
--------- ---------
SHAREHOLDERS' EQUITY
Common stock 816 816
Additional paid in capital 1,279,710 1,279,710
Retained earnings 2,639,145 2,509,482
Treasury stock (136,886) (136,886)
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 3,782,785 3,653,122
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $11,414,086 $6,708,052
---------- ---------
---------- ---------
See notes to consolidated condensed financial statements
</TABLE>
<TABLE>
SANDATA, INC.AND SUBSIDIARIES
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
FEB. 29, FEB. 28, FEB. 29, FEB. 28,
1996 1995 1996 1995
------- ------- ------- --------
<S> <C> <C> <C> <C>
REVENUES:
Service fees $2,188,151 $1,789,344 $6,424,286 $5,170,140
Real estate rental income 84,290 -- 203,229 --
Other income 90,030 13,431 208,121 51,601
Interest income from officer 10,031 8,150 29,728 21,798
--------- --------- --------- ---------
2,372,502 1,810,925 6,865,364 5,243,539
--------- --------- --------- ---------
COSTS AND EXPENSES:
Service Fees:
Operating 1,198,900 1,135,537 3,575,432 3,275,207
Selling, general and
administrative 463,250 426,011 1,550,188 1,314,986
Depreciation and
amortization 282,603 155,370 743,029 425,960
Interest expense 56,379 46,182 160,179 118,438
--------- --------- --------- ---------
2,001,132 1,763,100 6,028,828 5,134,591
--------- --------- --------- ---------
Real Estate:
Operating 125,915 -- 368,900 --
Depreciation and amortization 45,064 -- 62,648 --
Interest expense 88,808 -- 196,463 --
Real estate taxes 39,000 -- 82,000 --
--------- --------- --------- ---------
298,787 -- 710,011 --
TOTAL COSTS AND EXPENSES 2,299,919 1,763,100 6,738,839 5,134,591
--------- --------- --------- ---------
Earnings from operations
before income taxes 72,583 47,825 126,525 108,948
--------- -------- --------- ---------
Income tax expense
(benefit) 0 20,000 (3,138) 45,000
NET EARNINGS $72,583 $27,825 $129,663 $63,948
------- ------- -------- -------
EARNINGS PER COMMON SHARE $ 0.06 $ 0.03 $ 0.10 $ 0.06
Weighted average common shares
outstanding 1,287,757 1,107,757 1,287,757 1,107,757
See notes to consolidated condensed financial statements
</TABLE>
<TABLE>
SANDATA, INC.AND SUBSIDIARIES
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<CAPTION>
NINE MONTHS ENDED
FEBRUARY 29, FEBRUARY 28,
1996 1995
----------- ------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net earnings $ 129,663 $ 63,948
Adjustments to reconcile
net earnings to net cash
provided by operating
activities:
Depreciation and
amortization 805,677 425,960
Provision for losses on
accounts receivable -- 4,500
Decrease in allowance for
doubtful accounts receivable (53,000) --
Increase in deferred income 113,013 104,090
Change in operating assets
and liabilities:
Decrease in operating
assets 702,814 68,375
Increase (decrease) in
operating liabilities 140,329 (45,432)
-------- --------
Net cash provided by operating
activities 1,838,496 621,441
--------- -------
INVESTING ACTIVITIES:
Payments received on note
receivable from officer 150,000 240,000
Purchases of fixed assets (2,280,974) (1,986,181)
Increases in advances from
affiliates 81,407 --
Repayment of advances to
affiliates 35,937 41,305
Collections of note receivable
-former affiliates 160,285 209,369
------- -------
Net cash used in investing
activities (1,853,345) (1,495,507)
--------- ---------
FINANCING ACTIVITIES:
Proceeds from term loan 1,112,000 --
Payments on term loans (1,201,518) --
Proceeds from line of
credit 1,500,000 1,975,000
Principal payments on line
of credit (1,312,000) (1,175,000)
--------- ---------
Net cash provided by financing
activities 98,482 800,000
--------- ---------
Increase (decrease) in cash
and cash equivalents 83,633 (74,066)
Cash and cash equivalents at
beginning of period 102,613 271,595
------- -------
Cash and cash equivalents at
end of period $186,246 $197,529
-------- --------
-------- --------
Note: Sandata assumed $4,143,140 in various debt as disclosed in the notes
to the Consolidated Condensed Financial Statements in conjunction with the
acquisition of the Facility.
See notes to consolidated condensed financial statements
</TABLE>
SANDATA, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
The Consolidated Condensed Balance Sheet as of February
29, 1996, the Consolidated Condensed Statements of
Operations for the three and nine-month periods ended
February 29, 1996 and February 28, 1995 and the
Consolidated Condensed Statement of Cash Flows for the
nine-month periods ended February 29, 1996 and February
28, 1995 have been prepared by Sandata, Inc. and
Subsidiaries (the "Company") without audit. In the
opinion of Management, all adjustments (which include
only normal, recurring adjustments) necessary to
present fairly the financial position as of February
29, 1996 and for all periods presented have been made.
For information concerning the Company's significant
accounting policies, reference is made to the Company's
Annual Report on Form 10-KSB for the year ended May 31,
1995. Results of Operations for the period ended
February 29, 1996 are not necessarily indicative of the
operating results expected for the full year.
2. RELATED PARTY TRANSACTIONS
A) On July 1, 1992, the Company loaned $1,000,000 to
the Company's Chairman, bearing interest at the prime
rate plus 1-1/4% and was due July 1, 1995. On September
1, 1993, the Company was issued a new note for the then
outstanding balance of $490,000, bearing interest at
prime plus 1-1/4% and being due April 30, 1994. On May
1, 1994, the Company extended the due date of the note
to the earlier of April 30, 1995 or as the Company may
demand at any time after the effective date of the then
proposed privatization transaction. The Chairman paid
$340,000 of the outstanding loan to the Company during
the year ended May 31, 1995. On May 1, 1995, the
Company extended the due date of the note to October
31, 1995. On July 31, 1995, the Chairman, as a result
of the assignment of the lease with the Nassau County
Industrial Development Agency ("NCIDA") from BFS
Sibling Realty Inc., formerly known as Brodsky Sibling
Realty Inc. ("BFS"), an affiliate substantially owned
by the Company's Chairman, repaid $129,000 to Sandata,
Inc. The remaining balance of the note receivable was
repaid by the Chairman during the quarter ending
February 29, 1996.
B) On June 1, 1994, BFS, an affiliate substantially
owned by the Company's Chairman, borrowed $3,350,000 in
the form of Industrial Development Revenue Bonds
("Bonds") to finance costs incurred in connection with
the acquisition, renovation and equipping of the
Company's new office space located at 26 Harbor Park
Drive, Port Washington, New York (the "Facility" or the
"Building") from the NCIDA. These Bonds were
subsequently purchased by a bank (the "Bank"). The
aggregate cost incurred by BFS in conjunction with such
acquisition, renovation and equipping was approximately
$4,376,405. In addition, the Company expended
approximately $499,848 in connection with additional
capital improvements. The Bonds bore interest at prime
plus 3/4 of 1% until August 11, 1995, at which time the
interest rate became fixed at 9% for a five-year term
through September 1, 2000. At that time, the interest
rate will be adjusted (at the Company's option) to a
rate of either prime plus 3/4 of 1%, or the applicable
fixed rate if offered by the Bank. Commencing October
1, 1995, principal, together with interest, is being
repaid in equal monthly installments based on a 15 year
amortization, with the balance of unpaid principal due
September 1, 2005.
C) On June 21, 1994 (as of June 1, 1994), the Company
and its Chairman guaranteed the full and prompt payment
of principal and interest of the Bonds and the Company
granted the Bank a security interest and lien on all
the assets of the Company. In connection with the
issuance and sale of the Bonds, the Company entered
into a lease agreement (the "Sublease") with BFS,
whereby the Company leased the Facility for the conduct
of its business and, in consideration therefor, was
obligated to make lease payments that at least equal
amounts due to satisfy the underlying Bond obligations.
D) As of July 1, 1995, by an Assignment and Assumption
and First Amendment to Lease between the Company and
BFS, the Company became the beneficial owner of and
leases the Facility from the NCIDA (collectively the
"Assignment Transaction"). In connection with the
Assignment Transaction, the Sublease was terminated.
The Company currently pays rent for the Facility to the
NCIDA in the amount of $48,600 per month, subject to
adjustment based upon the then effective interest rate,
among other things, for a term expiring in September,
2005. The expiration of the lease term coincides with
the maturity date of the existing Bond financing
through the NCIDA. Upon the expiration of such term,
the Company currently intends to exercise its rights to
become record owner of the Facility. The Company's
facilities are adequate for current purposes. In
connection with the Assignment Transaction, the Company
assumed certain indebtedness owed by affiliates of the
Company's Chairman as follows: (i) the $364,570
remaining balance of a 48-month term loan bearing
interest at 8.7% per annum, and (ii) the $428,570
remaining balance of a 42-month term loan at 8.91%.
Each of the foregoing loans were incurred in connection
with the construction of improvements to the Building,
are collateralized by the assets of the primary obligor
and are guaranteed by the Company's Chairman.
E) On August 11, 1995, the Company entered into a
$750,000 loan agreement with the Long Island
Development Corporation, under a guarantee by the U.S.
Small Business Administration ("SBA"). The entire
$750,000 proceeds have been used to repay a portion of
the Bond indebtedness to the Bank. The Company entered
into the Assignment Transaction primarily to satisfy
certain requirements of the SBA.
3. NET EARNINGS PER COMMON SHARE
Earnings per share for the three and nine months ended
February 29, 1996 includes the dilutive effect of
outstanding stock options and warrants. The number of
common stock equivalents determined by applying the
modified treasury stock method included in the
calculation of earnings per share for the three and
nine months ended February 29, 1996 was 523,802.
Earnings per share for the three and nine months ended
February 28, 1995 include the dilutive effect of
outstanding stock options and warrants. The number of
common stock equivalents determined by applying the
treasury stock method included in the calculation of
earnings per share for the three and nine months ended
February 28, 1995 was 343,802.
4. SALE/LEASEBACK TRANSACTION
In June 1995, the Company consummated a sale/leaseback
of certain fixed assets (principally furniture,
fixtures, computer hardware and software and
equipment). The fixed assets, which had a net book
value of approximately $332,000, were sold for
$475,000. The resulting gain of approximately $143,000
was recorded as deferred income and is being recognized
over the life of the lease, which is thirty-eight (38)
months. Approximately $11,900 and $35,600 of deferred
gain was recognized for the three and nine months ended
February 29, 1996.
In September 1995, the Company consummated a
sale/leaseback of certain fixed assets (principally
computer hardware). The fixed assets, which had a net
book value of approximately $193,000, were sold for
approximately $326,000. The resulting gain of
approximately $133,000 was recorded as deferred income
and is being recognized over the life of the lease
which is sixty (60) months. Approximately $6,600 and
$17,700 of deferred gain was recognized for the three
and nine months ended February 29, 1996.
Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Revenues were $2,372,502 and $6,865,364 for the three
and nine months ended February 29, 1996 as compared to
$1,810,925 and $5,243,539 for the three and nine months
ended February 28, 1995, increasing $561,577 and
$1,621,825, respectively.
Service fee revenue for the three and nine months ended
February 29, 1996 was $2,188,151 and $6,424,286, an
increase of $398,807 and $1,254,146, which is partially
attributable to revenue derived from a new product
called TimeTrax.
Real estate rental income of $84,290 and $203,229 for
the three and nine months ended February 29, 1996 is
derived from the rental of space to companies
affiliated with the Company's Chairman.
Other income for the three and nine-month period ended
February 29, 1996 was $90,030 and $208,121,
respectively, as compared to $13,431 and $51,601 for
the three and nine month-period ending February 28,
1995. This increase is partially due from the gain
realized upon the sale of assets in connection with the
following sale/leaseback transaction.
In June 1995, the Company consummated a sale/leaseback
of certain fixed assets (principally furniture,
fixtures, computer hardware and software and
equipment). The fixed assets, which had a net book
value of approximately $332,000, were sold for
$475,000. The resulting gain of approximately $143,000
was recorded as deferred income and is being recognized
over the life of the lease, which is thirty-eight (38)
months. Approximately $11,900 and $35,600 of deferred
gain was recognized for the three and nine months ended
February 29, 1996.
In September 1995, the Company consummated a
sale/leaseback of certain fixed assets (principally
computer hardware). The fixed assets, which had a net
book value of approximately $193,000, were sold for
approximately $326,000. The resulting gain of
approximately $133,000 was recorded as deferred income
and is being recognized over the life of the lease
which is sixty (60) months. Approximately $6,600 and
$17,700 of deferred gain was recognized for the three
and nine months ended February 29, 1996.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
Expenses Related to Services
Operating expenses increased $63,363 or 6% and $300,225
or 9% for the three and nine months ended February 29,
1996 as compared to the three and nine months ended
February 28, 1995.
Programming costs relating to existing applications,
including TimeTrax and the expenses related to
equipment used for TimeTrax, were the primary causes
for the increase in operating expenses. There was an
increase in selling, general and administrative
expenses to $463,250 and $1,550,188 for the three and
nine months ended February 29, 1996, compared to
$426,011 and $1,314,986 for the three and nine months
ended February 28, 1995, an increase of $37,239 and
$235,202, respectively. The increase is partially due
to costs related to TimeTrax of approximately $40,000
and $166,000 for the three and nine months ended
February 29, 1996, respectively. The increase was
partially offset by decreased selling expenses of
approximately $56,000 and $189,000 due to the granting
by the Company of an exclusive license to an
unaffiliated third party to market its Home Health Pro
system.
Depreciation and amortization expense increased
$127,233 and $317,069 to $282,603 and $743,029 for the
three and nine months ended February 29, 1996 as
compared to $155,370 and $425,960 for the three and
nine months ended February 28, 1995. The increase was
primarily attributable to fixed asset additions,
including software capitalization costs.
Interest expense was $56,379 and $160,179 for the three
and nine months ended February 29, 1996 as compared to
$46,182 and $118,438 for the three and nine months
ended February 28, 1995. The increases are
attributable to additional borrowing against the
Company's revolving credit agreement and commensurate
interest expense increases.
Expenses Related to Real Estate Operations
Expenses include all expenses related to the operation
of the Facility, including real estate taxes,
depreciation expense and interest expense.
Income Taxes
Income tax benefit for the three and nine months ended
February 29, 1996 was $-0- and $3,138, respectively.
For the three and nine months ended February 28, 1995,
the Company incurred tax expense of $20,000 and
$45,000, respectively. The tax benefit arose from the
filing of amended tax returns for prior years which has
resulted in a refund of an overpayment.
Liquidity and Capital Resources
The Company's working capital deficiency as of February
29, 1996 was $82,721, a decrease from May 31, 1995 of
$1,647,055 or 105%. As discussed below, the Company
assumed various debt in conjunction with the
acquisition of the Facility. This transaction
increased the current portion of long-term debt by
approximately $460,000.
In addition the Company has spent approximately
$2,281,000 in fixed asset additions, including software
capitalization costs in connection with revenue growth
and new product development. The Company has also
experienced an increase in its accounts payable due in
part to its increased expenses in connection with its
revenue growth.
On July 1, 1992, the Company loaned $1,000,000 to the
Company's Chairman, bearing interest at the prime rate
plus 1-1/4% and was due July 1, 1995. On September 1,
1993, the Company was issued a new note for the then
outstanding balance of $490,000, bearing interest at
prime plus 1-1/4% and being due April 30, 1994. On May
1, 1994, the Company extended the due date of the note
to the earlier of April 30, 1995 or as the Company may
demand at any time after the effective date of the then
proposed privatization transaction. The Chairman paid
$340,000 of the outstanding loan to the Company during
the year ended May 31, 1995. On May 1, 1995, the
Company extended the due date of the note to October
31, 1995. On July 31, 1995, the Chairman, as a result
of the assignment of the lease with the Nassau County
Industrial Development Agency ("NCIDA") from BFS
Sibling Realty Inc., formerly known as Brodsky Sibling
Realty Inc. ("BFS"), an affiliate substantially owned
by the Company's Chairman, to Sandata, Inc., repaid
$129,000. The remaining balance of the note receivable
was repaid by the Chairman during the quarter ended
February 29, 1996.
On July 31, 1993, the Company received a promissory
note from Compuflight, Inc. ("Compuflight"), a former
affiliate (the Company's Chairman was a principal
stockholder and Chairman of Compuflight through
December 1, 1993) to evidence the Company's accounts
receivable from Compuflight. The note was payable in
increments of $20,000 per month including interest at
the rate of one percent above prime on the unpaid
balance and was due April 1, 1994. On November 1,
1993, the note was amended. The amended note is
payable in minimum increments of $20,000 per month with
interest at ten percent (10%) per annum and contains
provisions for accelerated payments based upon
Compuflight achieving certain results. Payments
commenced on February 28, 1994 and are to continue
until such time as the indebtedness and any accrued
interest are paid in full. In connection with the
promissory note, the Company received a security
interest in substantially all the then existing assets
of Compuflight, which has been assigned to the Bank as
collateral for the Company's Credit Agreement with the
Bank. At the present time, Compuflight is indebted to
the Company in the amount of $293,376, of which
$256,914 represents the balance due on the note and
$36,462 represents accounts receivable.
On June 1, 1994, BFS borrowed $3,350,000 in the form of
Industrial Development Revenue Bonds ("Bonds") to
finance costs incurred in connection with the
acquisition, renovation and equipping of the Company's
new office space located at 26 Harbor Park Drive, Port
Washington, New York (the "Facility" or the "Building")
from the NCIDA. These Bonds were subsequently
purchased by a bank (the "Bank"). The aggregate cost
incurred by BFS in conjunction with such acquisition,
renovation and equipping was approximately $4,376,405.
In addition, the Company incurred approximately
$499,848 in connection with additional capital
improvements. The Bonds bore interest at prime plus 3/4
of 1% until August 11, 1995, at which time the interest
rate became fixed at 9% for a five-year term through
September 1, 2000. At that time, the interest rate
will be adjusted (at the Company's option) to a rate of
either prime plus 3/4 of 1%, or the applicable fixed
rate if offered by the Bank. Commencing October 1,
1995, principal, together with interest, is being
repaid in equal monthly installments based on a 15 year
amortization, with the balance of unpaid principal due
September 1, 2005.
On June 21, 1994 (as of June 1, 1994), the Company and
its Chairman guaranteed the full and prompt payment of
principal and interest of the Bonds and the Company
granted the Bank a security interest and lien on all
the assets of the Company. In connection with the
issuance and sale of the Bonds, the Company entered
into a lease agreement (the "Sublease") with BFS,
whereby the Company leased the Facility for the conduct
of its business and, in consideration therefor, was
obligated to make lease payments that at least equal
amounts due to satisfy the underlying Bond obligations.
As of July 31, 1995, by an Assignment and Assumption
and First Amendment to Lease between the Company and
BFS, the Company became the beneficial owner of and
leases the Facility from the NCIDA (collectively the
("Assignment Transaction"). In connection with the
Assignment Transaction, the Sublease was terminated.
The Company currently pays rent for the Facility to the
NCIDA in the amount of $48,600 per month, subject to
adjustment based upon the then effective interest rate,
among other things, for a term expiring in September,
2005. The expiration of the lease term coincides with
the maturity date of the existing Bond financing
through the NCIDA. Upon the expiration of such term,
the Company currently intends to exercise its rights to
become record owner of the Facility. The Company's
facilities are adequate for current purposes. In
connection with the Assignment Transaction, the Company
assumed certain indebtedness owed by affiliates of the
Company's Chairman as follows: (i) the $364,570
remaining balance of a 48-month term loan bearing
interest at 8.7% per annum, and (ii) the $428,570
remaining balance of a 42-month term loan at 8.91%.
Each of the foregoing loans were incurred in connection
with the construction of improvements to the Building,
are collateralized by the assets of the primary obligor
and are guaranteed by the Company's Chairman.
On August 11, 1995, the Company entered into a $750,000
loan agreement with the Long Island Development
Corporation ("LIDC"), under a guarantee by the U.S.
Small Business Administration ("SBA"). The entire
$750,000 proceeds have been used to repay a portion of
the Bond indebtedness to the Bank. The Company entered
into the Assignment Transaction primarily to satisfy
certain requirements of the SBA.
The Company has a line of credit to borrow up to
$2,000,000 and a two-year term loan in the amount of
$500,000 with the Bank. As of February 29, 1996 there
is a balance of $1,638,000 remaining on the line of
credit and $291,660 remaining on the term loan,
respectively. The Company believes the results of its
continued operations, together with the available line
of credit, term loan and financings from the IDA and
SBA should be adequate for the Company's presently
foreseeable working capital requirements.
SANDATA, INC.AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1 - LEGAL PROCEEDINGS:
None
Item 2 - CHANGES IN SECURITIES:
None
Item 3 - DEFAULTS UPON SENIOR SECURITIES:
None
Item 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS:
None
Item 5 - OTHER INFORMATION:
None
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K:
Exhibit 27 - Financial Data Schedule (Electronic
Filing Only)
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.
SANDATA, INC.
(Registrant)
Date: April 15, 1996 By: /s/ Bert E. Brodsky
Bert E. Brodsky
Chairman of the Board
President, Chief Executive Officer,
Chief Financial Officer
April 15, 1996
Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Re: Sandata, Inc., File No. 0-14401
Dear Sir or Madam,
Transmitted herewith through the EDGAR system is Form
10-QSB for the quarter ending February 29, 1996 for
Sandata Inc. If you have any questions or comments,
please contact me at (516)484-4400, extension 215.
Very truly yours,
Linda Scarpantonio
Legal Coordinator
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> FEB-29-1996
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0
0
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