U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB/A
[ X ] QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from: to:
Commission file number: 33-26899-D
The J. Rish Group, Inc.
(Exact Name of Registrant as specified in its charter)
LOUISIANA 84-1082394
(State or other jurisdiction (IRS Employer Identi-
of incorporation or organization fication Number)
6748 Renoir
Baton Rouge, Louisiana 70816
(Address code of principal executive offices)
(504) 926-0596
(Issuer=s telephone number)
Check mark whether the Issuer (1) has filed all reports required by
Section 13 or 15(d) of the Exchange Act 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 the filing requirements for at least
the past 90 days. YES: NO:
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PREVIOUS FIVE YEARS
Check whether the registrant 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 the court. YES:
NO:
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuers classes of
common stock, as of the last practicable date: 24,731,000
Transitional Small Business Disclosure Format. YES: NO: X
<PAGE>
THE J. RISH GROUP, INC.
Index
PART I FINANCIAL INFORMATION
Balance Sheet
June 30, 1998 3
Statements of Operations
Six Months
Ended June 30, 1999 and 1998 4
Statements of Cash Flows
Six Months Ended
June 30, 1998 and 1997 5
Notes to Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 7-8
PART II
Other Information 9
Signatures 10
<PAGE>
J Rish Group, Inc.
Estimated Quarterly Balance Sheet
June 30 1999
UNAUDITED
06/30/98 6/30/99
Current Assets
Cash $ 358,345 $ 317,253
A/R net of allow for doubtful accts 676,182 525,598
Prepaid 5,327 21,748
Total Current Assets 1,039,856 864,599
Property and Equipment NET D/A 330,831 339,203
Land 0 469,150
Intangible Assets 2,070 50,038
Due from affiliates -54,168 500,751
Total Assets 1,318,588 2,223,740
Current Liabilities
A/P 953,849 1,400,297
Accrued expenses 21,455 478,029
N/P 526,034 462,551
Third Party Payor 945,226 945,226
Total Current Liabilities 1,501,339 3,286,104
N/P net of current portion 101,595 168,753
Total Liabilities 1,602,933 3,454,857
Equity
Stock 4,000 80,036
Accumulated Def Prior Yr <116,939> <673,946>
Net Inc (Loss) Current <171,406> <637,207>
Total Liab and Equity $ 1,318,588 $ 2,223,740
<PAGE>
J Rish Group, Inc.
Estimated Quarterly Income Statement
June 30 1999 (UNAUDITED)
Second QTR Second QTR
6/30/98 6/30/99
Gross Revenue $ $ 3,362,732
Contractual Allowance 1,849,502
Net Patient Revenue 1,374,471 1,513,229
Salaries & Benefits 714,563 983,550
Contract Labor 121,950 108,717
Insurance 14,002 17,082
Office Supplies 50,947 69,840
Management Fees 266,800 530,000
Consulting 18,894 14,705
Rent 83,273 70,752
Repairs & Maintenance 20,844 21,660
Retent & Recruit 50,899 0.00
Utilities 24,052 30,464
Depreciation 32,167 0.00
Bad Debts 10,430 0.00
Merchandise Purchases 0 13,625
Transportation Expense 28,043 20,541
Miscelaneous Expense 18,517 39,718
Interest Income
Miscellaneous Income
Interest Expense 10,764 10,669
Total Other Income Expense 10,764 10,669
Net Income (Loss) $ <91,682> $ <418,100>
UNAUDITED
<PAGE>
J Rish Group, Inc.
Consolidated Statement of Cash Flows
For Six Months Ending June 30,1999
UNAUDITED
1999
Cash Flows from Operating Activities
Net Loss (418,100.24)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and Amortization 5,000.00
Changes in Assets and Liabilities:
Increase in A/R (123,183.73)
Decrease in Prepaids 1,969.97
Decrease in A/P and Accrued Exp 111,328.64
(422,985.36)
Cash Flows From Investing Activities
Acquisition of Office Equipment (8,000.00)
N/R - Affiliates 309,869.71
301,869.71
Cash Flows From Financing Activities
Principal Reductions (33,756.63)
Proceeds from N/P 110,000.00
76,243.37
Increase(Decrease) in Cash (44,872.28)
Cash and Cash Equivalents, Beg of Period 362,125.25
Cash and Cash Equivalents, End of Period 317,252.97
Due to merger and acquisitions the comparibility of the 1998 cash
flow statement is not applicable.
<PAGE>
Best of America Corporation
Notes to Financial Statements
The accompanying condensed unaudited financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to form 10-QSB.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring adjustments) considered necessary for a
fair presentation have been included. The results of operations for the
periods presented are not necessarily indicative of the results to be
expected for the full year. The accompanying financial statements should
be read in conjunction with the Company's form 10-KSB filed for the year
ended December 31, 1998.
Basic (loss) per share was computed using the weighted average number of
common shares outstanding.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company during the second quarter 1999 has an increase of revenues as
it continues to adjust its operation from the effects in the Medicare
reimbursement system resultant from the Balanced Budget Amendment enacted
by Congress in 1998, and placed into effect in early 1999. Total net patient
revenues increased from $ 1, 374,471 in the second quarter 1998 to
$ 1,513,229 in the second quarter 1999. The loss for the second quarter
was due principally to readjustments the Company's subsidiaries are effecting
as a result of the Medicare cutbacks made effective in early 1999, and the
retention of professional staff in areas capped by such cutbacks. Most of the
personnel in such areas are expected to be utilized in the Company's plan to
diversify its patient mix from Medicare reimbursed programs to private
insurance and other payor sources.Also, a portion of the loss for the
second quarter are due to funding of startup operations and the professional
line and staff personnel of its recently acquired facilities.
The revenue increase has been the result of the two clinic acquistions
brought online in Tylertown Mississippi and Greenville, Mississippi in the
first quarter of 1999. Subsequent to the end of the first quarter, the Company
acquired Wynwood Community Mental Health Clinic on May 14 1999. The clinic is
located in Miami, Florida and is a Joint Commission Accredited Facility.
Additionally, the Company purchased an interest in a hospital facility
located in Monroe, Louisiana. The Company plans to initially develop the
facility into an inpatient rehab hospital, which is estimated to be
operational in the last quarter of this fiscal year.
The Company is projecting positive earnings growth when the existing
facilities are reoriented to its new mission as a mixed provider of expanded
medical services to both Medicare and private insurance patients, and once
its newly acquired facilities are fully operational.
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 SECURITY HOLDERS.
Not applicable.
ITEM 5. OTHER INFORMATION.
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Not applicable.
(b) Exhibit 27 - Financial Data Schedule
<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.
Best of America Corporation
(Registrant)
Dated: October 7, 1999
By: /s/ Julian P. Rish
____________________________
Chief Executive Officer and Controller
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