U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
[ 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: 8,731,000
Transitional Small Business Disclosure Format. YES: NO: X
<PAGE>
BEST OF AMERICA CORPORATION
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
December 31, 1998
UNAUDITED
06/30/98 6/30/99
Current Assets
Cash 358345.3 317253
A/R net of allow for doubtful accts 676182.5 525598
Prepaid 5327.94 10686.1
Total Current Assets 1039856 864599
Property and Equnet A/D 330831 339203
Intangible Assets 2070.38 50038.7
Due from affiliates -54168.7 500751
Total Assets 1318588 2223740
Current Liabilities -4.7E-10 0.0035
A/P 953849 1400297
Accrued expenses 21455.47 478029
N/P 526034 462551
Total Current Liabilities 1501339 3286104
N/P net of current portion 101595.4 1687537
Total Liabilities 1602934 3454858
Equity
Stock 4000 80036
Accumulated Def Prior Yr -116939 -673946
Net Inc (Loss) Current -171406 -637207
Total Liab and Equity 1318588 2223740
<PAGE>
J Rish Group, Inc.
Estimated Quarterly Income Statement
1999
Unaudited
3/31/99
Gross Revenue 2,728,139.70
Contractual Allowance Rate 55% 1,500,476.84
Net Patient Revenue 1,227,662.87
Salaries & Benefits 677,432.47
Contract Labor 131,225.98
Insurance 16,283.38
Office Supplies 29,188.64
Management Fees 440,000.00
Consulting 7,777.00
Rent 39,567.40
Repairs & Maintenance 1,666.30
Retent & Recruit 0.00
Utilities 23,459.30
Depreciation 0.00
Bad Debts 0.00
Merchandise Purchases 22,541.49
Transportation Expense 18,187.14
Miscelaneous Expense 27,274.55
1,434,603.65
Income (Loss) From Operations
Interest Income
Miscellaneous Income
Interest Expense 12,166.37
Total Other Income Expense 12,166.37
Net Income (Loss) (219,107.16)
UNAUDITED
<PAGE>
J Rish Group, Inc.
Consolidated Statement of Cash Flows
For Three 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, 195,192 in the second quarter 1998 to
$ 1, 456, 202 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/ Edwin J. Cantin
____________________________
Edwin J. Cantin, President
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