J RISH GROUP INC
10QSB, 2000-11-28
AUTOMOTIVE REPAIR, SERVICES & PARKING
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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: March 31, 2000

< > 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 of incorporation or organization)

 

(IRS Employer Identification 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: 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 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 


 

THE J. RISH GROUP

INDEX

 

PART I

FINANCIAL INFORMATION

For the three months ending

Page

 

Balance Sheet

September 30, 2000

3

 

Statement of Operations

September 30, 2000

4

 

Statement of Cash Flows

September 30, 2000

5

 

Notes to Financial Statements

 

6

 

Management's Discussion and Analysis of Financial Condition and Results of Operations

 

7

 

 

 

 

 

 

 

 

PART II

OTHER INFORMATION

 

8

 

SIGNATURES

 

9

 

 


PART I

FINANCIAL INFORMATION

J Rish Group, Inc.

Consolidated Balance Sheet

September 30, 1999 and 2000

Unaudited

2000

1999

Cash

$       487,739 

$        892,208 

Accts Rec net of AFDA

2,915,528 

1,415,473 

Inventory

888 

11,062 

Prepaids

11,903 

6,986 



Total Current Assets

3,416,058 

2,325,729 

Fixed Assets less A/D

1,187,194 

985,606 

Land

252,001 

469,150 

Intangible Assets

482,411 

52,813 

Due from shareholder

Due from affiliates

265,703 



Total Assets

$      5,603,367 

$     3,833,298 



Accounts Payable

$      2,457,642 

$     1,482,890 

Third Party Reimbursement

3,294,233 

876,780 

Accrued expenses

351,951 

500,388 

Notes Payable

593,942 

1,624,426 

Line of Credit

104,522 

Other Liabilities

911,798 



Total Current Liabilities

7,714,089 

4,484,484 

Long-term Liabilities

1,952,185 



Total Liabilities

9,666,274 

4,484,484 

 

Stock

80,036 

80,036 

Retained Earnings

(2,177,420)

127,352 

Net Income

(1,965,523)

(858,574)



Total Capital

(4,062,907)

(651,186)



Total Liabilities & Capital

$       5,603,367 

$     3,833,298 



 


 

J Rish Group, Inc.

Consolidated Statements of Operations

For Nine Months Ending and Year to Date September 30, 1999 and 2000

Unaudited

<------------2000------------->

<------------1999------------->

3rd Qrt

Year To Date

3rd Qrt

Year To Date

Gross Revenue

$  15,178,953 

$35,319,912 

$ 5,408,281 

$11,499,153 

Contractual Allowance

10,920,798 

22,438,389 

2,440,880 

5,790,859 





Net Patient Revenue

$    4,258,155 

$12,881,523 

$ 2,967,401 

$ 5,708,294 





Salaries & Benefits

1,722,290 

5,269,972 

1,218,796 

2,879,778 

Contract Labor

1,051,547 

2,747,104 

260,043 

499,986 

Insurance

44,363 

173,002 

41,892 

75,257 

Supplies

816,943 

2,128,069 

151,813 

250,842 

Management Fees

14,103 

412,537 

481,681 

1,451,681 

Consulting

176,713 

841,335 

260,922 

283,404 

Rent

306,871 

784,527 

98,904 

209,223 

Repairs & Maintenance

57,449 

182,597 

71,809 

95,135 

Retention & Recruiting

56,178 

178,524 

46,632 

46,632 

Utilities

110,393 

325,146 

71,183 

125,106 

Depreciation

82,749 

226,842 

Bad Debts

394,640 

827,074 

335,000 

335,000 

Merchandise Purchases

44,793 

85,936 

22,947 

59,113 

Transportation Expense

84,020 

216,222 

62,555 

101,283 

Miscellaneous Expense

161,233 

300,796 

36,260 

103,262 





Total Operating Expenses

$    5,124,285 

$14,699,683 

$ 3,160,437 

$ 6,515,702 





Income (Loss) From Operations

($       866,130)

($ 1,818,160)

($   193,036)

($   807,408)





Interest Income

(72)

(87)

Miscellaneous Income

(848)

(2616)

Interest Expense

50,197 

150,066 

28,329 

51,164 





$         49,277 

$   147,363 

$    28,329 

$      51,164





Net Income (Loss)

($       915,407)

($1,965,523)

($  221,365)

($   858,572)





Earnings (Loss) Per Share:

Net Loss

($0.10)

($0.23)

($0.03)

($0.10)

Weighted Average Shares Outstanding

8,731,000 

8,731,000 

8,731,000 

8,731,000 





 


 

J Rish Group, Inc.

Consolidated Statements of Cash Flows

For The Nine Months Ending September 30, 1999 and 2000

Unaudited

2000

1999

Cash Flows from Operating Activities

Net Loss

$ (1,965,523)

$  (221,366)

Adjustments to reconcile net loss to net

cash provided by operating activities:

Provision for Bad Debt

827,074 

350,000 

Depreciation and amortization

226,842 

Changes in Assets and Liabilities:

(Increase) Decrease in Accounts Receivable

(386,703)

889,876 

(Increase) Decrease in Inventory

(888)

(Increase) Decrease in Prepaid Expenses

(8,102)

3,700 

Increase(Decrease) in Third Party Settlements

(181,205)

Increase(Decrease) in Account Payable

504,510 

104,951 

Increase(Decrease) in Accrued Expenses

(257,280)

Increase(decrease) in Other Liabilities

493,321 

(68,446)



Net cash provided by(used in) operating activities

(747,954)

1,058,715 



Cash Flows From Investing Activities

Note receivable - affiliates

275,423 

Acquisition of Furniture & Equipment

(575,140)

(146,404)

Acquisition of Facility

(500,000)

Purchase of Intangible Assets

(2,773)

Proceeds from shareholder receivable

81,000 



Net cash used in investing activities

(218,717)

(649,177)



Cash Flows From Financing Activities

Repayment of notes payable

(251,487)

(168,754)

Proceeds from Line of Credit

104,522 

Proceeds from notes payable

1,166,214 

334,172 



Net cash provided by financing activities

1,019,249 

165,418 



Increase(Decrease) in cash

52,578 

574,956 

 

Cash and Cash Equivalents, Beg of Period

435,161 

317,252 

Cash and Cash Equivalents, End of Period

$     487,739 

$    892,208 



 


 

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, 1999.

 


 

 

The J. Rish Group, Inc.
Management's Discussion and Analysis of
Financial Position and Results of Operation

 

According to Julian Rish, CEO

Revenues for the third quarter, of the year 2000 before contractuals, increased to $15,178,953.00, an approximate increase of $5,000,000.00 over the second quarter or approximately 33%. Total revenue through the third quarter before contractuals, equals $35.3 million. We continue to make predicable progress relative to our financial projections

The increased revenue has come from our basic outpatient clinical operations and the on-set of our Marion Louisiana Hospital. We expect to see a new revenue stream emanating from our free standing MRI Center in Clinton, LA during the last 30 days of this year. The on-set of this system has been delayed to time losses associated with the delivery of the system to our site as well as delays caused by the local power company to deliver three-phase power to our site. We anxiously anticipate the on-set of this business. It is not cost-reimbursed and should add to our profit picture in the coming months.

As we prepare for "for-profit" activities in all our outpatient clinics, we have begun to reduce costs by reducing pay roll and any other marginal or unnecessary costs. We have begun to pursue the workmen's compensation market as well as the personal injury market at all locations. Pursuing these and other un-tapped markets are the first steps towards converting from total cost-reimbursement to more private non-reimbursed dollars.

Significant developments for the year include contact with a Wall Street investment-banking firm. The principle of the firm has visited our headquarters site in Baton Rouge, La and has begun a due-diligence process to determine if they will underwrite us. We should know their decision on or before January 15th, 2001. I am optimistic about these needed developments.

The Luling Outpatient Rehab Hospital in Luling, Louisiana, just north of New Orleans, Louisiana has been surveyed and is now receiving patients. This is a hospital unto which we have signed a management contract as well as underwritten the start-up. We are excited about this facility as it will pay us as a management company and the contract should approach $300,000.00 annually.

All existing operations are performing very well and we will work hard to maintain this position. New ventures before us include the opportunity to develop a 10.5-acre medical complex in the city of Baton Rouge. The tenants will be a group of participating doctors as well as, ourselves. Further, the physicians group will also maintain a minor ownership interest. This is a 22.5 million dollar project.

We have also begun discussions with a group of therapists in the northern part of Mississippi who own and operate twelve profitable physical therapy outpatient centers. The prospects of acquiring this company meet several desirable criteria:

  1. They are profitable
  2. They are not dependant upon cost-reimbursement from the government.
  3. They are ideally geographically located. Everywhere they are located in Mississippi, we desire to be.

As always, many new opportunities await us. We are moving as fast as our manpower and resources will allow as our continual growth demonstrates. We are hopeful that we will be able to consummate a relationship with our newly discovered investment banking firm. Achieving this will allow us to take some new steps towards the future as well as provide a bit of relief for some of our people that are working extremely hard.

 

 


 

 

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.

  1. Not applicable.
  2. Exhibit 27 - Financial Data Schedule.

 


 

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: November 27, 2000

By:

_____________________________________.

Julian P. Rish, Chief Executive Officer

 



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