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: December 31, 1999
< > TRANSITION REPORT UNDER SECTION 133 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 Identification Number)
of incorporation or organization)
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: X 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 be
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
INDEX
PART I FINANCIAL INFORMATION
Balance Sheet
December 31, 1999 3
Statement of Operations
Three Mths Ending
December 31, 1999 4
Statement of Cash Flows
Three Mths Ending
December 31, 1999 5
Notes to Financial Statements 6
Management's Discussion and Analysis
Of Financial Condition and Results
Of Operations 6-7
PART II OTHER INFORMATION
SIGNATURES
<PAGE>
J Rish Group, Inc.
Estimated Quarterly Balance Sheet
December 31, 1999
12/31/99
---------
Current Assets
Cash 319,643.50
A/R net of allow for doubtful accts 2,260,318.24
Inventory 12,500.00
Prepaid 48,756.73
Total Current Assets 2,641,218.47
Property and Equip net A/D 482,155.94
Land 469,150.00
Intangible Assets 58,421.67
Total Assets 3,650,946.08
Current Liabilities
A/P 2,431,630.02
Third Party payor settlements 1,289,301.00
Accrued expenses 163,363.24
N/P 632,375.94
Total Current Liabilities 4,516,670.20
N/P net of current portion 0.00
Total Liabilities 4,516,670.20
Equity
Stock 80,036.00
Accumulated Def Prior Yr 127,351.87
Net Inc (Loss) Current (1,073,111.99)
Total Liab and Equity 3,650,946.08
<PAGE>
J Rish Group, Inc.
Estimated Quarterly Income Statement
For Three Months Ending December 31, 1999
Gross Revenue 8,937,913.85
Contractual Allowance 5,163,880.83
Net Patient Revenue 3,774,033.02
Salaries & Benefits 1,819,116.34
Contract Labor 286,262.61
Insurance 41,285.49
Office Supplies 448,106.20
Management Fees 826,537.14
Consulting 367,948.43
Rent 101,212.30
Repairs & Maintenance 23,698.95
Retent & Recruit 398,698.79
Utilities 89,132.77
Depreciation 83,600.00
Bad Debts 133,000.00
Merchandise Purchases 4,065.90
Transportation Expense 58,586.99
Miscelaneous Expense 147,241.06
Total Expenses 4,828,492.97
Income (Loss) From Operations (1,054,459.95)
Interest Income 0.00
Miscellaneous Income (826,537.13)
Interest Expense 24,124.18
Total Other Income/Expense (802,412.95)
Net Income (Loss) (252,047.00)
<PAGE>
J Rish Group, Inc.
Consolidated Statement of Cash Flows
For The Three Months Ending December 31, 1999
Unaudited
Cash Flows from Operating Activities
Net Loss (214,538.48)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Provision for Bad Dept 133,000.00
Changes in Assets and Liabilities:
Increase in A/R 844,845.09
Increase in Prepaids (41,770.60)
Increase in Inventory (1,438.00)
Increase in A/P and Accrued Expenses (611,716.01)
Increase in Other Liabilities (579,528.96)
(471,146.96)
Cash Flows From Investing Activities
Reclassification Fixed Assets 3,450.11
Purchase of Intangible Assets (5,609.67)
(2,159.56)
Cash Flows From Financing Activities
Principal Reductions (99,258.16)
(99,258.16)
Increase(Decrease) in Cash (572,564.68)
Cash and Cash Equivalents, Beg of Period 892,208.18
Cash and Cash Equivalents, End of Period 319,643.50
<PAGE>
The J. Rish Group, Inc.
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.
Management's Discussion and Analysis of Financial Condition
and Results
With the full onset of our 26 bed Monroe Regional Acute
Rehab Hospital, which saw its first patients during the last
week of October of 1999, Revenue for the 4th quarter of 1999
totaled just under $9,000,000 ($8,937,913). Total Revenue
for 1999 totaled $20,437,065. $ 8,937,913.00 produced in
the 4th quarter of 1999 is greater than the three (3)
preceding quarters and validates management's objective to
continue to position the company to produce annualized
revenue of $ 100 million over the next two years.
The company, during the 1st quarter of 2000, has opened
another outpatient clinic in Jackson, MS with clinics in
Columbia, MS and Magnolia, MS, to follow. The company is
also considering takeovers of three rural hospitals of up to
130 beds. While outpatient clinics will average $200,000
per month in revenue, small hospitals (26) beds will average
$800,000 per month. The company, through tight management
and higher than average aggressive leadership coupled with
extremely hard work, is presented with new and exciting
growth opportunities in the area of multi-faceted healthcare
delivery on a daily basis.
Recognizing the need for effective management, the company
recently added Ms. Cheri Parvino, as Director of Field and
Clinical Operations. Ms. Parvino's primary area of
responsibility is to develop strong leadership in each field
unit and make it "stand-alone" as it carries out
management's objectives on a daily basis as it pertains to
production achievements and delivering a very high quality
of health care. Ms Parvino will relieve Mr. Gary Johnson,
Chief of Clinical Expansion, and Mr. W. Bland Greeson, Chief
of Hospital Expansion, of many field duties. All phases of
our company have been enhanced with this addition.
While the company continues to show a loss on operations of
$ 1,073,112 for fiscal 1999, it feels the losses are
reasonable and was expected in view of the companies' strong
expansion and revenue growth. Considering the growth in
revenues, operating losses have decreased 23% when compared
to both 1998 and the cumulative 3rd quarter of 1999.
To address the operating loss, management has already taken
steps to develop a "for profit" division of its business
through the development of freestanding non-cost reimbursed
clinics and management contracts with non-owned cost-
reimbursed facilities. To this end, management contracts
have already been signed with Psyche of LA (a cost-
reimbursed Community Mental Health Center in Monroe, LA).
This contract will generate non-cost reimbursed revenue in
excess of $200,000 per year. The company has also made
arrangements to acquire a freestanding non-cost reimbursed
rehabilitation clinic in Natchez, MS during the 2nd quarter
of 2000. This clinic should produce approximately $150,000
in profits for the company during fiscal 2000. Management
expects this area of development to wipe out operating
losses of the company and to show a profit in the
approximate amount of $500,000 for fiscal 2000.
Management expects gross revenue to exceed $ 30 million
during 2000.
<PAGE>
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.
The J. Rish Group, Inc.
(Registrant)
Dated: February 14, 2000
By: /s/ Julian P. Rish
_____________________________________.
Julian P. Rish, Chief Executive Officer
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