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Previous: MEDCROSS INC, 8-K, 1996-06-21 |
Next: MEDCROSS INC, 10QSB/A, 1996-06-21 |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A#1
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from to
Commission file number 0-17973
MEDCROSS, INC.
(Exact name of small business issuer as specified in its charter)
FLORIDA 59-2291344
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3227 Bennet Street North, St. Petersburg, Florida 33713
(Address of principal executive offices)
(813) 521-1793
(Issuer's telephone number)
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 issuer was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.
Class Outstanding at April 30, 1995
Common Stock, par value $0.007 1,749,163
Traditional Small Business Disclosure Format (Check One): Yes No X
<PAGE> 1
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
MEDCROSS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
<CAPTION>
Assets
March 31
1995
-----------
<S> <C>
Current assets
Cash and cash equivalents $ 320,051
Accounts receivable less allowance of $852,347 925,804
Inventory 839,907
Prepaid expenses 105,024
---------
Total current assets 2,190,786
---------
Property and equipment 3,393,896
Less accumulated depreciation 1,491,504
---------
Net property and equipment 1,902,392
---------
Investment in unconsolidated subsidiary 7,500
Intangible assets, net of amortization of $182,030 612,380
Other assets 73,692
---------
Total assets $ 4,786,750
=========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 517,283
Advance deposits received 153,541
Reserve for warranty liability 137,267
Note payable - related party 218,000
Note payable - other 450,000
Current portion of long-term debt 303,505
Current obligations under capital lease 252,473
---------
Total current liabilities 2,032,069
---------
Long-term debt 600,380
Obligations under capital leases 89,723
Minority interest equity in consolidated subsidiaries 412,296
Commitments and contingencies -
Stockholders' equity
Preferred stock 2,075,000
Common stock 12,244
Other stockholders' equity ( 434,962)
---------
Total stockholders' equity 1,652,282
---------
Total liabilities and stockholders' equity $ 4,786,750
=========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE> 2
<TABLE>
<CAPTION>
MEDCROSS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31
------------------------------------
1995 1994
------------ -----------
<S> <C> <C>
Net operating revenue $ 1,117,493 $ 932,370
--------- ---------
Cost of goods sold - equipment sales and service 185,157 -
Salaries and benefits 328,931 293,003
Repairs and maintenance 76,946 80,037
Provision for doubtful accounts 327,588 36,090
Depreciation and amortization 117,952 120,677
Other operating expenses 316,788 326,778
--------- ---------
Operating profit (loss) ( 235,869) 75,785
Interest expense ( 39,128) ( 42,454)
Other income 3,816 8,407
Equity in net income of unconsolidated subsidiary - 5,359
--------- ---------
Income (loss) before minority interest in net income (loss)
of consolidated subsidiaries and income tax provision ( 271,181) 47,097
--------- ---------
Minority interest in net income (loss) of consolidated subsidiaries 12,779 23,154
--------- ---------
Income (loss) before income tax provision ( 283,960) 23,943
Income tax provision - 2,487
--------- ---------
Net income (loss) $( 283,960) $ 21,456
========= =========
Loss per common and equivalent share after preferred dividends $( .18) $ -
========= =========
Weighted average common and equivalent shares outstanding 1,749,163 1,520,313
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE> 3
<TABLE>
<CAPTION>
MEDCROSS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months Ended
March 31
----------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Cash provided by operating activities $ 50,068 $ 64,359
--------- ---------
Cash flows from investing activities
Purchase of property and equipment ( 15,000) ( 6,633)
Investment in unconsolidated subsidiary - ( 3,750)
--------- ---------
Net cash used by investing activities ( 15,000) ( 10,383)
--------- ---------
Cash flows from financing activities
Proceeds of note payable - related party 218,000 -
Proceeds (reduction) of note payable - other ( 101,000) 218,000
Reductions of long-term debt ( 97,286) ( 97,286)
Reduction of capital lease obligations ( 59,400) ( 53,932)
Minority interest contributions - 260,417
Minority interest distributions ( 36,500) ( 9,625)
--------- ---------
Net cash provided (used) by financing activities ( 76,186) 317,574
--------- ---------
Effect of foreign currency translation on cash flows 12 ( 87,522)
--------- ---------
Increase (decrease) in cash and cash equivalents ( 41,106) 284,028
Cash and cash equivalents at beginning of period 361,157 1,176,757
--------- ---------
Cash and cash equivalents at end of period $ 320,051 $ 1,460,785
========= =========
<CAPTION>
Supplemental cash flow information
In February 1995 a holder of Class B Preferred Stock converted 9,350 shares into 227,714 shares of Common
Stock.
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE> 4
MEDCROSS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Financial Statements
In the opinion of management, all adjustments, consisting only of normal
recurring adjustments necessary for a fair statement of (a) the results of
operations for the three-month periods ended March 31, 1995 and March 31, 1994,
(b) the financial position at March 31, 1995, and (c) cash flows for the three-
month periods ended March 31, 1995 and March 31, 1994, have been made.
The unaudited consolidated financial statements and notes are presented as
permitted by Form 10-QSB. Accordingly, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been omitted. The
accompanying consolidated financial statements and notes should be read in
conjunction with the audited financial statements and notes of the Company for
the fiscal year ended December 31, 1994. The results of operations for the
three-month period ended March 31, 1995 are not necessarily indicative of those
to be expected for the entire year.
Note 2 -Earnings Per Common Share
Earnings per common share are based upon the weighted average number of common
shares outstanding and the dilutive effect of common stock equivalents
consisting of stock options and convertible preferred stock. Fully diluted
earnings per share are not presented because it approximates earnings per
common share.
Note 3 - Geographic Segment Information
The Company's operations consist of providing diagnostic and clinical outpatient
health care services domestically and the sale and service of used medical
equipment in the People's Republic of China (PRC). The corporate office
provides management and operational services for domestic outpatient health care
services. The eliminations represent charges for these services to entities
included in the consolidation. Financial information for the different
geographic segments is as follows:
<TABLE>
<CAPTION>
Three Months Ended Corporate/
March 31, 1995 Domestic China Management Eliminations Consolidated
- ---------------------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Revenue $ 696,818 $ 337,889 $ 133,412 $( 50,626) $ 1,117,493
========= ========= ========= ========= =========
Operating Profit $ 146,185 $( 210,987) $( 120,441) $( 50,626) $( 235,869)
========= ========= ========= ========= =========
Identifiable Assets $ 3,500,413 $ 1,031,660 $ 288,414 $( 33,737) $ 4,786,750
========= ========= ========= ========= =========
<CAPTION>
Three Months Ended Corporate/
March 31, 1994 Domestic China Management Eliminations Consolidated
- ---------------------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Revenue $ 782,561 $ - $ 178,382 $( 28,573) $ 932,370
========= ========= ========= ========= =========
Operating Profit $ 263,364 $( 41,530) $( 117,476) $( 28,573) $ 75,785
========= ========= ========= ========= =========
Identifiable Assets $ 3,993,181 $ 597,864 $ 1,357,051 $( 16,960) $ 5,931,136
========= ========= ========= ========= =========
<PAGE> 5
PART II - OTHER INFORMATION
Item 6(a) - Exhibits
11 Statement regarding computation of earnings per common share. PAGE 10.
Item 6(b) - Reports on Form 8-K
None.
<PAGE> 8
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 thereunder duly authorized.
MEDCROSS, INC.
(Registrant)
Date: June 20, 1996 By: /s/ HENRY TOH
Henry Toh
President/CEO/Acting CFO
</TABLE>
<TABLE>
<CAPTION>
EXHIBIT 11
COMPUTATION OF EARNINGS PER COMMON SHARE
For the Period Ended
March 31
----------------------------
1995 1994
------------ ------------
<S> <C> <C>
Earnings per common and common equivalent share
Net loss available to common and equivalent shares $( 314,923) $( 3,759)
========= =========
Weighted average common shares outstanding 1,632,776 1,503,305
Adjustments
Assumed conversion of Class B Variable Rate
Cumulative Convertible Preferred Stock 116,387 17,008
--------- ---------
Total common and equivalent shares 1,749,163 1.520,313
========= =========
Loss per common and equivalent share after preferred dividends $( .18) $ -
========= =========
Fully diluted earnings per common and common equivalent share
Net loss available to common and equivalent shares $( 314,923) $( 3,759)
========= =========
Weighted average common shares outstanding 1,632,776 1,503,305
Adjustments
Assumed conversion of Class B Variable Rate
Cumulative Convertible Preferred Stock 116,387 17,008
--------- ---------
Total common and equivalent shares 1,749,163 1.520,313
========= =========
Loss per common and equivalent share after preferred dividends $( .18) $ -
========= =========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MEDCROSS, INC AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS INCLUDED IN THE
COMPANY'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 320051
<SECURITIES> 0
<RECEIVABLES> 1778151
<ALLOWANCES> 852347
<INVENTORY> 839907
<CURRENT-ASSETS> 2190786
<PP&E> 3393896
<DEPRECIATION> 1491504
<TOTAL-ASSETS> 4786750
<CURRENT-LIABILITIES> 2032069
<BONDS> 690103
<COMMON> 12244
0
2075000
<OTHER-SE> (434962)
<TOTAL-LIABILITY-AND-EQUITY> 4786750
<SALES> 337889
<TOTAL-REVENUES> 1117493
<CGS> 185157
<TOTAL-COSTS> 185157
<OTHER-EXPENSES> 840617
<LOSS-PROVISION> 327588
<INTEREST-EXPENSE> 39128
<INCOME-PRETAX> (271181)
<INCOME-TAX> 0
<INCOME-CONTINUING> (283960)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (283960)
<EPS-PRIMARY> (.18)
<EPS-DILUTED> (.18)
</TABLE>
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