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) October 22, 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 or 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)
Registrant's telephone number, including area code (919) 847-8102
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On October 22, 1997, the Registrant issued a press release stating (in
part) as follows:
Raleigh, N.C., October 22 -- Medic Computer Systems, Inc. (Nasdaq: MCSY) ,
announced today the results of its third quarter and nine months ended September
30, 1997. Total net revenues for the third quarter were $61,468,000, up 23%
compared with $50,072,000 for the same period in the previous year. Net income
for the third quarter was $7,277,000, up 20% compared with net income of
$6,086,000 for the same period in the previous year. Net income per share was
$0.28 compared to $0.25 in the previous year. Income from operations for the
third quarter was $10,952,000 up 15% compared with $9,539,000 in the previous
year.
For the nine months ended September 30, 1997, total net revenues were
$169,255,000, up 23% compared with $138,030,000 for the same period in the
previous year. Excluding the effect of acquisition-related expenses, net income
for the nine months ended September 30, 1997, was $17,608,000, up 5% compared
with pro forma net income of $16,826,000 for the same period in the previous
year. Net income per share, excluding acquisition-related expenses, was $0.68
for both periods. Income from operations, excluding acquisition-related charges,
was $26,377,000, up 1%, compared with $26,067,000 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 nine months ended September 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 nine months ended
September 30, 1996.
Medic signed a merger agreement on September 4 with Misys plc, the UK's largest
independent applications software products group, whereby Misys would acquire
Medic for $35 per share in cash, or an aggregate of approximately $923 million.
The merger proposal has already gained Misys shareholder approval, and Misys has
arranged sufficient financing to consummate the acquisition subject only to
customary loan conditions. The Federal Trade Commission granted early
termination of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act with respect to the acquisition earlier this month. The parties
expect that the proposed merger will be presented for approval to Medic
shareholders in mid-to-late November 1997. As previously indicated, the
transaction remains subject to a number of other customary closing conditions,
and there can be no assurance that the merger will occur by such time, or at
all.
Medic Computer Systems, Inc. is a leading provider and developer of healthcare
information management systems to integrated delivery networks, management
service organizations, managed care organizations, hospitals, physician
practices and home health care agencies. Medic's products are designed to manage
financial, administrative, clinical and managed care information. 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.
The Company, including its most recent acquisitions, has over 10,000
installations nationwide which serve approximately 50,000 physicians. For more
information, visit Medic's web page at www.medcmp.com. or contact Medic at
1-919-847-8102. This press release contains forward-
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looking statements and references to potential future developments. Such
statements and references are based upon certain assumptions.
MEDIC COMPUTER SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
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SEPTEMBER 30, DECEMBER 31,
1997 1996
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ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 42,942 $ 25,557
Short-term investments 31,926 32,852
Accounts receivable, trade, net 56,227 54,737
Inventories and maintenance parts 12,710 13,778
Prepaid expenses 5,799 4,968
Other current assets 1,208 1,006
Deferred income tax benefit 2,935 2,886
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TOTAL CURRENT ASSETS 153,747 135,784
Property and equipment, at cost, net 12,770 10,099
Intangible assets, at cost, net 17,469 18,798
Other assets 57 55
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TOTAL ASSETS $ 184,043 $ 164,736
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term note $ 1,418 $ 1,575
Accounts payable, trade 9,517 10,013
Customer deposits and deferred maintenance revenue 11,561 11,340
Income taxes payable 2,746 1,131
Accrued expenses:
Commissions 1,788 2,213
Compensation and related items 5,145 4,915
Other 2,759 2,839
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TOTAL CURRENT LIABILITIES 34,934 34,026
Long-term note, less current portion 258 1,418
Other long-term liabilities 81 82
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SHAREHOLDERS' EQUITY:
Common Stock, $.01 par value; 40,000,000 shares
authorized; 25,785,717 and 24,441,470 shares issued and
outstanding in 1997 and 1996, respectively 258 244
Additional paid-in capital 72,825 70,797
Retained earnings 75,687 58,169
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148,770 129,210
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 184,043 $ 164,736
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MEDIC COMPUTER SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
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THREE MONTHS ENDED NINE MONTHS ENDED
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SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
NET REVENUES:
Systems $28,802 $24,373 $76,435 $65,861
Maintenance, forms and other services 32,666 25,699 92,820 72,169
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TOTAL NET REVENUES 61,468 50,072 169,255 138,030
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COST OF REVENUES:
Systems 17,585 14,625 48,196 39,513
Maintenance, forms and other services 19,293 15,768 55,497 43,609
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TOTAL COST OF REVENUES 36,878 30,393 103,693 83,122
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GROSS MARGIN 24,590 19,679 65,562 54,908
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OPERATING EXPENSES:
Sales and marketing 6,024 4,512 16,824 12,909
Research and development 3,625 2,602 11,079 7,395
General and administrative 3,546 2,584 11,032 7,446
Amortization of intangible assets 443 442 1,329 1,334
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TOTAL OPERATING EXPENSES 13,638 10,140 40,264 29,084
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INCOME FROM OPERATIONS 10,952 9,539 25,298 25,824
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OTHER INCOME:
Interest income 922 481 2,251 1,599
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INCOME BEFORE INCOME TAXES 11,874 10,020 27,549 27,423
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PROVISION FOR INCOME TAXES 4,597 3,934 10,971 10,254
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NET INCOME $7,277 $6,086 $16,578 $17,169
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PRO FORMA DATA:
INCOME BEFORE PRO FORMA INCOME
TAX PROVISION $7,277 $6,086 $16,578 $17,169
PRO FORMA INCOME TAX EXPENSE FOR
THE PERIODS PRIOR TO MAY 31, 1996 0 0 0 489
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PRO FORMA NET INCOME $7,277 $6,086 $16,578 $16,680
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PRO FORMA EARNINGS PER SHARE:
Net income per share $0.28 $0.25 $0.64 $0.67
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Pro forma weighted average common
shares and equivalents used in
computing net income per share 26,275,946 24,815,880 25,878,709 24,786,994
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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: October 22, 1997 /s/ Luanne L. Roth
Luanne L. Roth,
Vice President, Chief Financial Officer,
Secretary and Treasurer
(Principal Financial and Accounting
Officer)
