U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(Mark One)
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the quarterly period year ended February 29, 2000
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from to
Commission file number 0-14401
SANDATA, INC.
(Exact Name of Small Business Issuer as Specified in Its Charter)
Delaware 11-2841799
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
26 Harbor Park Drive, Port Washington, NY 11050
(Address of Principal Executive Offices)
516-484-9060
(Issuer's Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
Check whether the registrant has filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court.
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares outstanding of each of the issuer's classes of common
equity, as of April 13, 2000 was 2,481,478 shares.
Transitional Small Business Disclosure Format (check one):
Yes No X
<PAGE>
INDEX
Page
PART I - FINANCIAL INFORMATION
Item 1 - FINANCIAL STATEMENTS:
CONSOLIDATED CONDENSED BALANCE
SHEETS as of February 29, 2000 (unaudited)
and May 31, 1999 3
UNAUDITED CONSOLIDATED CONDENSED
STATEMENTS OF OPERATIONS for the nine months
ended February 29, 2000 and February 28, 1999 5
UNAUDITED CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS for the nine months
ended February 29, 2000 and February 28, 1999 6
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS 7
Item 2 - MANAGEMENT'S DISCUSSION AND
ANALYSIS OR PLAN OF OPERATION 12
PART II - OTHER INFORMATION 14
Item 1 - LEGAL PROCEEDINGS 14
Item 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS 14
Item 3 - DEFAULTS UPON SENIOR SECURITIES 14
Item 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS 14
Item 5 - OTHER INFORMATION 14
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K 14
<PAGE>
<TABLE>
Sandata, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
<S> <C> <C>
UNAUDITED AUDITED
February 29, May 31,
2000 1999
ASSETS:
CURRENT ASSETS
Cash and cash equivalents $ 197,870 $ 1,533,576
Accounts receivable, net of allowance for doubtful
accounts of $603,000 and $533,000 respectively 2,660,504 2,034,248
Receivables from affiliates 510,191 924,426
Other receivables 277,330 1,100,000
Inventories 32,728 29,307
Prepaid expenses and other current assets 490,335 485,455
TOTAL CURRENT ASSETS 4,168,958 6,107,012
FIXED ASSETS, NET 8,272,142 7,169,002
OTHER ASSETS
Notes receivable 132,614 169,608
Cash surrender value of officer's life insurance,
security deposits and other 803,743 775,557
TOTAL ASSETS $ 13,377,457 $ 14,221,179
See notes to consolidated condensed financial statements
</TABLE>
<PAGE>
<TABLE>
Sandata, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
<S> <C> <C>
UNAUDITED AUDITED
February 29, May 31,
2000 1999
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 1,764,050 $ 3,022,395
Current portion of long-term debt - 2,500,000
Deferred/unearned revenue 8,498 13,633
Deferred income 367,063 335,385
TOTAL CURRENT LIABILITIES 2,139,611 5,871,413
LONG TERM DEBT 2,700,000 -
DEFERRED INCOME 386,321 324,096
DEFERRED INCOME TAXES 535,000 535,000
TOTAL LIABILITIES 5,760,932 6,730,509
SHAREHOLDERS' EQUITY
Common stock 2,481 2,481
Additional paid in capital 5,772,075 5,772,079
Retained earnings 3,361,628 3,235,769
Notes receivable-officers (1,519,659) (1,519,659)
TOTAL SHAREHOLDERS' EQUITY 7,616,525 7,490,670
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 13,377,457 $ 14,221,179
See notes to consolidated condensed financial statements
</TABLE>
<PAGE>
<TABLE>
Sandata, Inc. and Subsidiaries
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
<S> <C> <C> <C> <C>
THREE MONTHS ENDED NINE MONTHS ENDED
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
2000 1999 2000 1999
REVENUES:
Service fees $ 4,499,917 $ 3,597,042 $ 13,006,062 $ 10,155,602
Other income 114,563 55,118 301,183 352,832
Interest income 38,523 38,723 118,781 102,207
4,653,003 3,690,883 13,426,026 10,610,641
COSTS AND EXPENSES:
Operating 2,917,330 2,124,860 8,387,617 6,211,423
Selling, general and administrative 971,580 925,287 2,880,890 2,675,168
Depreciation and amortization 581,022 521,887 1,767,897 1,460,438
Interest expense 64,250 48,264 176,302 64,809
TOTAL COSTS AND EXPENSES 4,534,182 3,620,298 13,212,706 10,411,838
Earnings from operations before income taxes 118,821 70,585 213,320 198,803
Income tax expense 48,716 31,304 87,461 79,629
NET EARNINGS 70,105 $ 39,281 $ 125,859 $ 119,174
BASIC EARNINGS PER SHARE $ 0.03 $ 0.02 $ 0.05 $ 0.05
DILUTED EARNINGS PER SHARE $ 0.03 $ 0.02 $ 0.05 $ 0.05
See notes to consolidated condensed financial statements
</TABLE>
<PAGE>
<TABLE>
Sandata, Inc. and Subsidiaries
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<S> <C> <C>
NINE MONTHS ENDED
Feb. 28 Feb. 29
2000 1999
Cash flows from operating activities:
Net earnings $ 125,859 $ 119,174
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,767,897 1,460,438
(Gain) on disposal of fixed assets (379,290) (269,948)
Increase (decrease) in allowance for doubtful accounts receivable 70,388 (21,258)
Increase in deferred income 93,903 120,475
(Decrease) increase in deferred revenue (5,135) 12,213
(Decrease) increase in operating assets 126,533 (977,902)
(Decrease) in operating liabilities (1,258,349) (779,767)
Net cash provided by operating activities 541,806 (336,575)
Cash flows from investing activities:
Purchases of fixed assets (4,445,001) (3,595,298)
Decreases in receivables from affiliates 414,235 35,538
Proceeds from sale/leaseback transaction 1,953,254 1,100,000
Net cash (used in) investing activities (2,077,512) (2,459,760)
Cash flows from financing activities:
Proceeds from stock transactions --- 1,609
Principal payments on term loan --- (22,296)
Proceeds from line of credit 2,000,000 3,150,000
Principal payments on line of credit (1,800,000) (1,850,000)
Net cash provided by financing activities 200,000 1,279,313
(Decrease) in cash and cash equivalents (1,335,706) (1,517,022)
Cash and cash equivalents at beginning of period 1,533,576 1,797,947
Cash and cash equivalents at end of period $ 197,870 $ 277,925
See notes to consolidated condensed financial statements
</TABLE>
<PAGE>
Sandata, Inc. and Subsidiaries
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
The Consolidated Condensed Balance Sheet as of February 29, 2000, the
Consolidated Condensed Statements of Operations for the three and nine month
periods ended February 29, 2000 and February 28, 1999 and the Consolidated
Condensed Statement of Cash Flows for the nine month period ended February 29,
2000 and February 28, 1999 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, 2000 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, 1999. Results of Operations for the period ended February 29, 2000
are not necessarily indicative of the operating results expected for the full
year.
2. RELATED PARTY TRANSACTIONS
The Company entered into an agreement in November, 1996 with an affiliate of the
Company's Chairman, the Nassau County Industrial Development Agency ("NCIDA")
and a bank (the "Agreement"). In connection with the Agreement, the affiliate
assumed all of the Company's obligations under a lease with the NCIDA and
entered into a sublease with the Company for its facility. The Company conveyed
to the affiliate the right to become owner of the facility upon expiration of
the lease. In addition, pursuant to a sublease, the Company has assumed certain
obligations owed by the affiliate to the NCIDA under the lease. The affiliate
has indemnified the Company with respect to certain obligations relative to the
lease and the Agreement. The Company made rent payments for its facility
amounting to $175,863 and $516,243 for the three and nine months ended February
29, 2000 as compared to $167,490 and $491,670 for the three and nine months
ended February 28, 1999.
The Company makes various lease payments to affiliates of the Company's
Chairman. The payments for equipment rental amounted to $98,590 and $295,313 for
the three and nine months ended February 29, 2000 as compared to $98,316 and
$289,031 for the three and nine months ended February 28, 1999.
The Company derives revenue from National Medical Health Card Systems, Inc.
("Health Card"), a company affiliated with the Company's Chairman of the Board,
for data base and operating system support, hardware leasing, maintenance and
related administrative services. The revenues generated from Health Card
amounted to $415,788 and $1,342,938 for the three and nine months ended February
29, 2000 as compared to $473,896 and $1,157,150 for the three and nine months
ended February 28, 1999.
As of June 1, 1998, Health Card hired 11 employees of the Company in order to
provide development, enhancement, modification and maintenance services,
previously provided by the Company. The Company was paid $208,000 in
consideration of the Company's waiving certain rights relative to such
employees. In addition, the Company leases certain computer equipment to Health
Card at a monthly cost of $2,000 in addition to computer hardware for its data
processing center at a monthly cost of $38,000 pursuant to a verbal agreement.
Medical Arts Office Services, Inc. ("MAOS"), a company which the Company's
Chairman of the Board is the sole shareholder, provided the Company with
accounting, bookkeeping and paralegal services. The payments made by the Company
to MAOS amounted to $74,859 and $207,990 for the three and nine months ended
February 29, 2000 as compared to $39,231 and $148,588 for the three and nine
months ended February 28, 1999.
3. NET EARNINGS PER COMMON SHARE
In 1997, the Financial Accounting Standards Board issued Standard No. 128 ("SFAS
No. 128"), "Earnings per Share". SFAS No. 128 replaced calculation of primary
and fully diluted earnings per share with basic and diluted earnings per share.
Basic earnings per share has been computed using the weighted average number of
shares of common stock outstanding. Diluted earnings per share has been computed
using the basic weighted average shares of common stock issued plus outstanding
stock options, in accordance with Staff Accounting Bulletin No. 98.
Basic earnings per share are based on the weighted-average number of shares of
common stock outstanding, which were 2,481,480 at February 29, 2000 and
2,336,364 at February 28, 1999. Diluted earnings per share are based on the
weighted-average number of shares of common stock adjusted for the effects of
assumed exercise of options and warrants under the treasury stock method, which
were as follows: 2,562,598 at February 29, 2000 and 2,544,282 at February 28,
1999.
Options to purchase 581,788 shares of common stock were outstanding at February
29, 2000 and were not included in the computation of diluted earnings per share
because the exercise price of the options was greater than the average market
price of the common stock for the respective period.
4. SALE/LEASEBACK TRANSACTION
In October 1999, the Company consummated a Sale/Leaseback of certain fixed
assets (principally computer hardware, software and equipment). The fixed
assets, which had a net book value of approximately $895,000 were sold for
$1,115,000. The resulting gain of approximately $220,000 was recorded as
deferred income and is being recognized over the life of the lease, which is
thirty-six (36) months. Approximately $18,000 and $31,000 of deferred gain was
recognized for the three and nine months ended February 29, 2000. An
unaffiliated third party purchased the residual rights in such lease.
In January 2000, the Company consummated a Sale/Leaseback of certain fixed
assets (principally computer hardware and software). The fixed assets, which had
a net book value of approximately $442,000 were sold for $561,000. The resulting
gain of approximately $119,000 was recorded as deferred income and is being
recognized over the life of the lease, which is thirty-six (36) months.
Approximately $3,000 of deferred gain was recognized for the three months ended
February 29, 2000. An unaffiliated third party purchased the residual rights in
such lease.
In February 2000, the Company consummated a Sale/Leaseback of certain fixed
assets (principally computer hardware and software). The fixed assets, which had
a net book value of approximately $237,000 were sold for $277,000. The resulting
gain of approximately $40,000 was recorded as deferred income and is being
recognized over the life of the lease, which is thirty-six (36) months.
Approximately $0 of deferred gain was recognized for the three months ended
February 29, 2000. The sale proceeds, which are shown as Other receivables in
the financial statements, were received in March 2000. An unaffiliated third
party purchased the residual rights in such lease.
5. STOCKHOLDERS' EQUITY
The Company has stock options outstanding under three stock option plans. As of
February 29, 2000, there were 2,536 options outstanding under an incentive stock
option plan adopted in October 1984 and subsequently amended. Options granted
under this plan were granted at exercise prices not less than fair market value
on the date of grant. Options outstanding under this plan expire in 2001. No
additional options may be granted under this plan.
As of February 29, 2000, there were 590,500 incentive options outstanding under
a stock option plan adopted in January 1995, which provides for both incentive
and nonqualified stock options and reserves 1,000,000 shares of common stock for
grant under the plan. The plan requires that options be granted at exercise
prices not less than the fair market value at the date of grant, over a ten-year
period. All options outstanding under this plan are currently exercisable at
prices ranging from $1.41 to $2.61 per share over a period of five years from
date of grant.
On July 14, 1998, Messrs. Bert E. Brodsky, Hugh Freund, Gary Stoller and Paul J.
Konigsberg, officers and directors of the Company, Gerald Shapiro, a former
director of the Company and Carol Freund, the spouse of Hugh Freund and an
employee of Sandsport Data Services, Inc. ("Sandsport"), the Company's wholly
owned subsidiary, exercised their respective options and warrants to purchase an
aggregate of 921,334 shares of common stock at exercise prices ranging from
$1.38 to $2.61 per share for an aggregate cost of $1,608,861. Payment for such
shares was made to the Company in the amount of $921 representing the par value
of the shares, and a portion in the form of non-recourse promissory notes due in
July 2001, with interest at eight and one-half percent (8-1/2%) per annum,
payable annually, and secured by the number of shares exercised.
In October 1998, the Board of Directors approved an amendment to the Company's
Certificate of Incorporation to increase the number of authorized common shares
from 3,000,000 to 6,000,000.
In October 1998, the Company adopted a stock option plan, reserving 1,000,000
shares of common stock for grant under the plan. Stock options granted under the
plan may be either incentive or non-statutory. As of February 29, 2000, an
aggregate of 416,452 incentive stock options were granted under the plan at an
exercise price of $3.00 and vest over a three-year period. Additionally, as of
February 29, 2000, an aggregate of 20,000 shares of non-statutory stock options
were granted to certain directors of the Company at an exercise price of $3.00.
These options vest immediately and are exercisable over a five-year period. In
February 2000, the Company granted 350,000 incentive stock options to the
Company's Chairman at an exercise price of $1.31. These options vest immediately
and are exercisable over a five-year period.
<PAGE>
Sandata, Inc. and Subsidiaries
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 $4,653,003 and $13,426,026 for the three and nine months ended
February 29, 2000 as compared to $3,690,883 and $10,610,641 for the three and
nine months ended February 28, 1999, increasing $962,120 and $2,815,385
respectively.
Service fee revenues were $4,499,917 and $13,006,062 for the three and nine
months ended February 29, 2000 as compared to $3,597,042 and $10,155,602 for the
three and nine months ended February 28, 1999, increasing $902,875 and
$2,850,460 respectively. The increases are attributable to revenues derived from
the SanTrax(R), SandataNET(R) and SHARP product lines.
Other income was $114,563 and $301,183 for the three and nine months ended
February 29, 2000 as compared to $55,118 and $352,832 for the three and nine
months ended February 28, 1999, increasing $59,445 and decreasing $51,649
respectively. The decrease is attributable to an amount received in the prior
period from Health Card in connection with its hiring employees of the Company,
offset by an increase in income recognized on sales/leaseback transactions.
Expenses Related to Services
Operating expenses were $2,917,330 and $8,387,617 for the three and nine months
ended February 29, 2000 as compared to $2,124,860 and $6,211,423 for the three
and nine months ended February 28, 1999, increasing $792,470 and $2,176,194
respectively. Costs associated with SanTrax and its operations, including
payroll, telephone and equipment rental expenses, in addition to increases in
costs associated with SandataNET and its operations, primarily payroll, were the
primary factors for the increases in operating expenses.
Selling, general and administrative expenses were $971,330 and $2,880,890 for
the three and nine months ended February 29, 2000, as compared to $925,287 and
$2,675,168 for the three and nine months ended February 28, 1999, an increase of
$46,293 and $205,722 respectively. The increases were primarily due to increases
in consulting, payroll and commission expenses relative to increased efforts to
increase sales in the SanTrax and SandataNET product lines, and certain
royalties payable to MCI Telecommunications Corporation.
Depreciation and amortization expenses were $581,022 and $1,767,897 for the
three and nine months ended February 29, 2000 as compared to $521,887 and
$1,460,438 for the three and nine months ended February 28, 1999, an increase of
$59,135 and $307,459 respectively. The increases were primarily attributable to
fixed asset additions, including computer hardware and software capitalization
costs, in connection with ongoing computer system upgrades.
Interest expenses were $64,250 and $176,302 for the three and nine months ended
February 29, 2000 as compared to $48,264 and $64,809 for the three and nine
months ended February 28, 1999, an increase of $15,986 and $111,493
respectively. The increases were a result of increased borrowings on the
Company's revolving credit agreement.
Income Tax Expenses
Income tax expenses were $48,716 and $87,461 for the three and nine months ended
February 29, 2000 as compared to $31,304 and $79,629 for the three and nine
months period ended February 28, 1999, an increase of $17,412 and $7,832
respectively.
Liquidity and Capital Resources
The Company's working capital increased as of February 29, 2000 to $2,029,347 as
compared with $235,599 at May 31, 1999.
For the nine months ended February 29, 2000, the Company has spent approximately
$4,445,000 in fixed asset additions, including computer hardware and software
capitalization costs in connection with revenue growth and new product
development. The Company expects the current levels of capital expenditures to
continue.
On July 14, 1998 Messrs. Bert E. Brodsky, Hugh Freund, Gary Stoller
and Paul J. Konigsberg, officers and directors of the Company, Gerald Shapiro, a
former director of the Company, and Carol Freund, the spouse of Hugh Freund and
an employee of Sandsport Data Services, Inc. ("Sandsport"), the Company's wholly
owned subsidiary, exercised their respective options and warrants to purchase an
aggregate of 921,334 shares of common stock at exercise prices ranging from
$1.38 to $2.61 per share for an aggregate cost of $1,608,861. Payment for such
shares was made to the Company in the amount of $921 representing the par value
of the shares, and a portion in the form of non-recourse promissory notes due in
July 2001, with interest at eight and one-half percent (8-1/2%) per annum,
payable annually, and secured by the number of shares exercised.
On April 18, 1997, the Company's wholly owned subsidiary, Sandsport, entered
into a revolving credit agreement (the "Credit Agreement") with a bank (the
"Bank") which allows Sandsport to borrow and re-borrow amounts up to $3,000,000.
Interest accrues on amounts outstanding under the Credit Agreement at a rate
equal to the London Interbank Offered Rate plus 2% and will be paid quarterly in
arrears or, at Sandsport's option, interest may accrue at the Bank's prime rate.
The Credit Agreement required Sandsport to pay a commitment fee in the amount of
$30,000 and a fee equal to 1/4% per annum payable on the unused average daily
balance of amounts under the Credit Agreement. In addition, there are other fees
and charges imposed based upon Sandsport's failure to maintain certain minimum
balances. The Credit Agreement which expired on March 1, 2000 has been amended
by the Bank to permit Sandsport to borrow and reborrow amounts up to $4,500,000
until February 14, 2003. Interest accrues at the same rate as the original
Credit Agreement. The indebtedness under the Credit Agreement is guaranteed by
the Company and Sandsport's sister subsidiaries (the "Group"). The collateral
for the facility is a first lien on all equipment owned by members of the Group,
as well as a collateral assignment of $2,000,000 of life insurance payable on
the life of the Company's Chairman. All of the Group's assets are pledged to the
Bank as collateral for the amounts due under the Credit Agreement. The Group's
guaranty to the Bank was modified to conform covenants to comply with those in
the Credit Agreement.
In addition, pursuant to the Credit Agreement, the Group is required to maintain
certain levels of net worth and meet certain financial ratios in addition to
various other affirmative and negative covenants. The Group has, in the past,
failed to meet these net worth and financial ratios, and the Bank has granted
the Group waivers. As of February 29, 2000, the outstanding balance on the
Credit Agreement with the Bank was $2,700,000.
As of June 1, 1998, Health Card hired 11 employees of the Company in order to
provide development, enhancement, modification and maintenance services,
previously provided by the Company. The Company was paid $208,000 in
consideration of the Company's waiving certain rights relative to such
employees. In addition, the Company leases certain computer equipment to Health
Card at a monthly cost of $2,000 in addition to computer hardware for its data
processing center at a monthly cost of $38,000 pursuant to a verbal agreement.
The Company believes the results of its continued operations, together with the
available credit line should be adequate to fund presently foreseeable working
capital requirements.
Year 2000
The Company is Year 2000 compliant as a result of its conversion from a Data
General computer platform to a Hewlett Packard Unix System and the upgrade of
the application software.
<PAGE>
Sandata, Inc. and Subsidiaries
PART II - OTHER INFORMATION
Item 1 - LEGAL PROCEEDINGS:
Reference is made to Form 10-QSB for the period ended
November 30, 1999.
Item 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS:
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)
<PAGE>
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 14, 2000 By: /s/ Bert E. Brodsky
Bert E. Brodsky
Chairman of the Board
President, Chief Executive Officer,
Chief Financial Officer
<PAGE>
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 14, 2000 By:
Bert E. Brodsky
Chairman of the Board
President, Chief Executive Officer,
Chief Financial Officer
<PAGE>
April 14, 1999
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, 2000 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
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000755465
<NAME> SANDATA, INC.
<MULTIPLIER> 1
<CURRENCY> $
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> JUN-01-1999
<PERIOD-END> FEB-29-2000
<EXCHANGE-RATE> 1
<CASH> 197,870
<SECURITIES> 0
<RECEIVABLES> 3,773,598
<ALLOWANCES> 603,263
<INVENTORY> 32,728
<CURRENT-ASSETS> 4,168,958
<PP&E> 17,922,531
<DEPRECIATION> 9,650,389
<TOTAL-ASSETS> 13,377,457
<CURRENT-LIABILITIES> 2,139,611
<BONDS> 0
0
0
<COMMON> 2,481
<OTHER-SE> 7,613,944
<TOTAL-LIABILITY-AND-EQUITY> 13,377,457
<SALES> 13,006,062
<TOTAL-REVENUES> 13,426,026
<CGS> 0
<TOTAL-COSTS> 13,036,404
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 176,302
<INCOME-PRETAX> 213,320
<INCOME-TAX> 87,461
<INCOME-CONTINUING> 125,859
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<CHANGES> 0
<NET-INCOME> 125,859
<EPS-BASIC> .05
<EPS-DILUTED> .05
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