SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 16, 1997
MEDIC COMPUTER SYSTEMS, INC
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(Exact name of registrant as specified in its charter)
North Carolina
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(State of other jurisdiction of incorporation)
0-20183 56-1306083
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(Commission file Number) (IRS Employer ID Number)
8601 Six Forks Road, Raleigh, North Carolina 27615
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(Address of principal executive offices) (Zip Code)
919/847-8102
Registrant's telephone number, including area code ----------------------------
N/A
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(Former name of former address, if changed since last report)
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Item 5. Other Events.
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On July 16, 1997, Medic Computer Systems, Inc. issued the
following press release:
Medic Computer Systems Announces Second Quarter Earnings
Raleigh, N.C., July 16 /PRNewswire/ -- Medic Computer Systems, Inc.
(Nasdaq: MCSY) announced today the results of its second quarter and six months
ended June 30, 1997. Total net revenues for the second quarter were $60,336,000
up 35.3% compared with $44,584,000 for the same period in the previous year. Net
income for the second quarter was $6,185,000, up 10.3% compared with pro forma
net income of $5,606,000 for the same period in the previous year, excluding the
effect of expenses of $146,000, net of income tax benefit, related to the
acquisition of CompuSystems in May 1996. Net income per share was $0.24
compared to $0.23 pro forma and excluding the effect of acquisition-related
expenses for the same period in the previous year. Pro forma net income gives
effect to pro forma income tax expense on earnings of CompuSystems prior to the
acquisition due to its subchapter S status. Income from operations for the
second quarter was $9,518,000, up 10.8% compared with $8,590,000, excluding
acquisition-related expenses of $243,000 pretax for the same period in the
previous year.
For the six months ended June 30, 1997, total net revenues were
$107,787,000, up 22.5% compared with $87,958,000 for the same period in the
previous year. Excluding the effect of acquisition-related expenses, net income
for the six months ended June 30, 1997, was $10,331,000, down 3.8% compared with
pro forma net income of $10,740,000 for the same period in the previous year.
Net income per share, excluding acquisition-related expenses, was $0.40
compared to $0.43 for the same period in the previous year. Income from
operations, excluding acquisition-related charges, was $15,425,000, down 6.7%,
compared with $16,528,000 for the same period in the previous year.
Acquisition-related expenses were $1,079,000 pretax ($1,030,000 net of income
tax benefit) for the six months ended June 30, 1997 for the acquisition of Home
Care Information Systems, Inc. and Computer Business Systems of Virginia, Inc.
in February 1997 and $243,000 pretax ($146,000 net of income tax benefit) for
the acquisition of CompuSystems for the six months ended June 30, 1996.
Medic develops, markets and supports physician practice management
systems and related services to physician practices, hospitals, Management
Service Organizations and managed care organizations. The Company's core
product, the +MEDIC(R) PM, is designed to manage the financial, administrative,
practice management and clinical requirements of medical groups of various
sizes, from single physician practices to large healthcare providers. The
Company's +MEDIC Vision(R) product is a physician information management system
specifically designed to meet the increasingly complex information management
needs of large medical groups, MSOs and integrated delivery networks. The +MEDIC
Vision product uses the latest 4GL, SQL and relational database technology from
Informix to address managed care environments as well as traditional
fee-for-service settings. The Company, including its most recent acquisitions,
has over 10,000 installations nationwide which serve approximately 50,000
physicians.
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Medic also develops, markets and supports clinical information
management system products designed principally to automate the recording,
maintenance and management of patient medical records. In addition, the Company
provides transaction-based electronic data interchange services, which include
patient billing and insurance claim submission, and sells hardware, peripherals,
training and installation support, forms and supplies, and software and hardware
maintenance services.
MEDIC COMPUTER SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(dollars in thousands, except share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
<S> <C>
NET REVENUES:
Systems $28,068 $20,325 $47,633 $41,488
Maintenance, forms and
other services 32,268 24,259 60,154 46,470
Total net revenues 60,336 44,584 107,787 87,958
COST OF REVENUES:
Systems 17,075 11,887 30,611 24,888
Maintenance, forms and
other services 19,252 14,679 36,204 27,841
Total cost of revenues 36,327 26,566 66,815 52,729
Gross margin 24,009 18,018 40,972 35,229
OPERATING EXPENSES:
Sales and marketing 5,995 4,274 10,800 8,397
Research and development 4,512 2,370 7,454 4,793
General and administrative 3,543 2,580 7,486 4,862
Amortization of intangible assets 441 447 886 892
Total operating expenses 14,491 9,671 26,626 18,944
Acquisition expenses 0 243 1,079 243
Income from operations excluding
acquisition expenses 9,518 8,590 15,425 16,528
Other income:
Interest income 690 574 1,329 1,118
Income before income taxes,
excluding acquisition expenses 10,208 9,164 16,754 17,646
Provision for income taxes 4,023 3,326 6,423 6,417
Net income, excluding
acquisition expenses $6,185 $5,838 $10,331 $11,229
Pro forma data:
Income before pro forma income
tax provision, excluding
acquisition expenses $6,185 $5,838 $10,331 $11,229
Pro forma income tax expense
for the periods prior to
May 31, 1996 0 232 0 489
Pro forma net income, excluding
acquisition expenses $6,185 $5,606 $10,331 $10,740
Pro forma earnings per share:
Net income per share, excluding
acquisition expenses $0.24 $0.23 $0.40 $0.43
Pro forma weighted average
common shares and equivalents
used in computing net income
per share 25,946,045 24,814,430 25,684,241 24,786,156
</TABLE>
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MEDIC COMPUTER SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except for share data)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 6,332 $ 25,557
Short-term investments 63,051 32,852
Accounts receivable, trade, net 53,711 54,737
Inventories and maintenance parts 12,696 13,778
Prepared expenses 6,664 4,968
Other current assets 1,468 1,006
Deferred income tax benefit 2,934 2,886
Total current assets 146,856 135,784
Property and equipment, at cost, net 13,046 10,099
Intangible assets, at cost, net 17,912 18,798
Other assets 58 55
Total assets $177,872 $164,736
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term note $ 1,418 $ 1,575
Accounts payable, trade 10,405 10,013
Customer deposits and deferred
maintenance revenue 11,612 11,340
Income taxes payable 2,718 1,131
Accrued expenses:
Commissions 1,830 2,213
Compensation and related items 5,148 4,915
Other 2,646 2,839
Total current liabilities 35,777 34,026
Long-term note, less current portion 645 1,418
Other long-term liabilities 81 82
Shareholders' equity:
Common Stock, $.01 par value;
40,000,000 shares authorized;
25,756,649 and 24,441,470 shares
issued and outstanding in 1997 and
1996, respectively 258 244
Additional paid-in capital 72,693 70,797
Retained earnings 68,418 58,169
141,369 129,210
Total liabilities and shareholders'
equity $177,872 $164,736
</TABLE>
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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 hereunto duly authorized.
MEDIC COMPUTER SYSTEMS, INC.
Date: July 16, 1997 /s/ Luanne L. Roth
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Luanne L. Roth
Vice President, Chief Financial
Officer, Secretary and Treasurer
(Principal Financial and
Accounting Officer)
