<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
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(Mark one)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT OF 1934
For the transition period from ___________ to ___________
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Commission File Number: 1-11922
MEDICALCONTROL, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 75-2297429
---------------------------- ------------------------
(State of incorporation) (IRS Employer ID Number)
8625 King George Drive, Suite 300; Dallas, Texas 75235
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(Address of principal executive offices)
(214) 630-6368
---------------------------
(Issuer's telephone number)
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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 registrant 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: Common Stock - 4,701,992 as of August
10, 2000.
Transitional Small Business Disclosure Format (Check one): YES NO X
--- ---
<PAGE> 2
MEDICALCONTROL, INC.
Form 10-QSB for the Quarter ended June 30, 2000
Table of Contents
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1 Consolidated Financial Statements 3
Item 2 Management's Discussion and Analysis or Plan of Operation 10
PART II - OTHER INFORMATION 13
</TABLE>
2
<PAGE> 3
MEDICALCONTROL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
----------- -----------
(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 991,007 $ 640,803
Restricted cash 205,401 313,665
Accounts receivable - trade, net of allowance
for doubtful accounts of $200,000 and $156,000
at June 30, 2000 and December 31, 1999, respectively 1,634,738 1,395,536
Accounts receivable - premium 413,906 482,420
Accounts receivable - other 382,886 396,410
Prepaid expenses and other current assets 335,566 312,049
Deferred income taxes 237,343 235,169
----------- -----------
Total current assets 4,200,847 3,776,052
NOTE RECEIVABLE - OFFICER, including accrued interest 463,209 448,328
RECEIVABLE FROM SALE OF DIVISION 220,988 300,000
PROPERTY AND EQUIPMENT, NET 1,448,728 1,544,279
GOODWILL, NET 5,887,603 6,019,463
INTANGIBLE AND OTHER ASSETS, NET 4,402 4,402
DEFERRED INCOME TAXES 368,961 368,961
----------- -----------
TOTAL ASSETS $12,594,738 $12,461,485
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 594,972 $ 842,266
Accounts payable - premium 619,307 796,084
Accrued liabilities 1,102,917 1,044,803
Borrowings under bank line of credit 400,000 --
Current portion of long-term debt 261,750 411,970
----------- -----------
Total current liabilities 2,978,946 3,095,123
NON-CURRENT LIABILITIES
Long-term debt, net of current portion 200,027 218,719
Deferred gain on sale of option on real estate 652,917 698,417
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock - $.10 par; 4,000,000
shares authorized, no shares issued or outstanding -- --
Common stock - $.01 par: 8,000,000 shares
authorized, 4,699,492 and 4,625,579 issued
in 2000 and 1999, respectively 46,995 46,256
Additional paid-in capital 8,522,731 8,225,281
Retained earnings 193,122 177,689
----------- -----------
Total stockholders' equity 8,762,848 8,449,226
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $12,594,738 $12,461,485
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 4
MEDICALCONTROL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended For The Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET REVENUES $ 3,954,118 $ 3,862,679 $ 7,831,274 $ 7,774,913
----------- ----------- ----------- -----------
OPERATING EXPENSES
Salaries and wages 2,438,400 2,468,875 4,861,063 5,066,805
Other operating expenses 1,368,128 1,331,717 2,658,606 2,750,127
Depreciation and amortization 148,691 188,427 297,819 373,055
Loss from impairment -- 1,225,000 -- 1,225,000
----------- ----------- ----------- -----------
Total operating expenses 3,955,219 5,214,019 7,817,488 9,414,986
----------- ----------- ----------- -----------
INCOME (LOSS) FROM OPERATIONS (1,101) (1,351,340) 13,786 (1,640,073)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
Interest expense (20,986) (55,223) (39,593) (122,047)
Investment income 23,935 20,600 48,363 43,734
Other income 2,100 2,542 2,100 2,542
----------- ----------- ----------- -----------
Total other income (expense) 5,049 (32,081) 10,870 (75,771)
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES 3,948 (1,383,421) 24,656 (1,715,844)
Income taxes (benefit) 1,596 (501,992) 9,223 (629,975)
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 2,352 $ (881,429) $ 15,433 $(1,085,869)
=========== =========== =========== ===========
Basic income (loss) per share $ 0.00 $ (0.21) $ 0.00 $ (0.26)
=========== =========== =========== ===========
Diluted income (loss) per share $ 0.00 $ (0.21) $ 0.00 $ (0.26)
=========== =========== =========== ===========
Weighted average common shares outstanding 4,676,540 4,231,659 4,659,932 4,193,640
=========== =========== =========== ===========
Weighted average common and diluted shares outstanding 4,784,253 4,231,659 4,785,529 4,193,640
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
MEDICALCONTROL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
----------------------------
2000 1999
----------- -----------
<S> <C> <C>
CASH FLOWS RELATED TO OPERATING ACTIVITIES
Net income (loss) $ 15,433 $(1,085,869)
Adjustments to reconcile net income (loss) loss
to net cash used in operations:
Depreciation and amortization 297,819 373,055
Amortization of deferred gain on real estate transaction (45,500) (45,500)
Loss from impairment -- 1,225,000
Net changes in certain assets and liabilities
Accounts receivable - trade (239,202) (112,294)
Receivable from sale of division 79,012 --
Accounts receivable - other 13,524 (233,675)
Prepaid expenses and other current assets (23,517) (200,914)
Accounts payable - trade (247,294) 399,109
Accrued expenses 58,114 (101,621)
Deferred income taxes (2,174) (441,000)
Other (14,880) (13,054)
----------- -----------
Net cash used in operating activities (108,665) (236,763)
----------- -----------
CASH FLOWS RELATED TO INVESTING ACTIVITIES
Acquisition and goodwill costs -- (21,000)
Purchases of property and equipment (70,408) (139,079)
----------- -----------
Net cash used in investing activities (70,408) (160,079)
----------- -----------
CASH FLOWS RELATED TO FINANCING ACTIVITIES
Draw on bank line of credit 400,000 75,000
Payments on long-term debt (168,912) (420,419)
Proceeds from issuance of common stock 298,189 509,910
----------- -----------
Net cash provided by financing activities 529,277 164,491
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 350,204 (232,351)
Cash and cash equivalents at beginning of period 640,803 1,112,653
----------- -----------
Cash and cash equivalents at end of period $ 991,007 $ 880,302
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURES
Interest paid $ 39,593 $ 99,306
=========== ===========
Income taxes paid $ -- $ --
=========== ===========
Restricted cash at period end date $ 205,401 $ 738,474
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
MEDICALCONTROL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2000
(UNAUDITED)
NOTE 1 - BACKGROUND AND ORGANIZATION
MedicalControl, Inc. (the "Company"), a Delaware corporation, is a holding
company of healthcare cost management and administrative services companies. The
Company is comprised of four main subsidiaries: MedicalControl Network
Solutions, Inc., providing managed care services primarily through its preferred
provider organization ("PPO") networks, Diversified Group Administrators, Inc.,
providing third party administration ("TPA") services, ppoONE.com, inc.
("ppoONE.com"), providing repricing and administrative services for PPOs and
certain network healthcare providers, and ValueCheck, Inc. ("ValueCheck"),
providing utilization review and case management services.
NOTE 2 - BASIS OF PRESENTATION
The financial statements included herein have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission ("SEC") and have
not been audited by independent public accountants. In the opinion of
management, all adjustments (which consisted only of normal recurring accruals)
necessary to present fairly the financial position and results of operations
have been made. Pursuant to SEC rules and regulations, certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted from these statements unless significant changes have taken place since
the end of the most recent fiscal year. The Company believes that the
disclosures contained herein, when read in conjunction with the financial
statements and notes included in the Company's Annual Report on Form 10-KSB for
the fiscal year ended December 31, 1999, are adequate to make the information
presented not misleading. It is suggested, therefore, that these statements be
read in conjunction with the statements and notes included in the aforementioned
Form 10-KSB.
NOTE 3 - EARNINGS PER SHARE
Basic earnings per share are computed by dividing net income by the weighted
average common shares outstanding during the period. Diluted earnings per share
are computed by dividing net income by the weighted average dilutive shares
outstanding during the period. There was no impact from dilutive common
equivalent shares since net income was less than one cent per share in the three
months and six months ended June 30, 2000 and losses were reported for the
three-months and six-months ended June 30, 1999.
In 2000, 1,037,500 and 992,500 common equivalent shares were excluded from the
calculation of diluted earnings per share for the three- and six-month periods
because the effect would have been anti-dilutive for such periods.
6
<PAGE> 7
NOTE 4 - DEBT
At June 30, 2000, the Company had outstanding borrowings of $400,000 under its
line of credit arrangement. This credit facility, secured by accounts
receivable, allows for maximum borrowings of $400,000 and bears interest at the
bank's prime rate plus 1.25% (10.75% at June 30, 2000).
Long-term debt consisted of the following at June 30, 2000 and December 31,
1999:
<TABLE>
<CAPTION>
2000 1999
-------- --------
<S> <C> <C>
Note payable to bank, secured by a pledge of substantially all
assets of the Company, monthly installments of $26,667, plus
interest at bank's prime rate plus 1% (10.5% and 9.5% at
June 30, 2000 and December 31, 1999) to April 2001 $235,259 $395,261
Mortgage note payable, monthly installments of $3,059, plus
Interest at 8% through January 2009 226,518 395,261
-------- --------
461,777 630,689
Less current portion 261,750 411,970
-------- --------
Total long-term debt, net of current portion $200,027 $218,719
======== ========
</TABLE>
NOTE 5 - SALE OF DIVISION
In August 1999, the Company's TPA subsidiary completed the sale of its
unprofitable division located in Dallas, Texas. The sale resulted in an
impairment of the goodwill attributable to this division in the amount of
$1,225,000, which is reflected as a charge against earnings for the three-month
and six-month periods ended June 30, 1999, reduced by a deferred tax benefit of
$441,000.
NOTE 6 - BUSINESS SEGMENT REPORTING
The Company manages its business segments primarily on a products and services
basis. The Company's reportable segments are comprised of managed care services,
primarily through its preferred provider organization, third party
administration services, repricing and administrative products and services
offered through its wholly-owned subsidiary, ppoONE.com, and utilization review
and case management services through its wholly-owned subsidiary, ValueCheck.
The Company evaluates the performance of its business units based on segment
operating profit. Segment revenues include an intercompany allocation for
services performed by ppoONE.com for the PPO segment. Segment operating profit
includes personnel, sales and marketing expenses and other operating expenses
directly attributable to the segment and excludes certain expenses that are
managed outside the segment. Costs excluded from the segment operating profit
consist of corporate expenses, including income taxes, amortization expense and
interest income and interest expense. Corporate expenses are comprised primarily
of executive compensation and other general and administrative expenses that are
separately managed. Corporate assets are not included in segment assets.
Corporate assets consist primarily of cash and cash equivalents, deferred taxes
and intangible assets.
7
<PAGE> 8
Certain reclassifications have been made in 1999 amounts in order to make them
consistent with amounts for the 2000 periods. The reclassifications reflect
moving the claims processing unit and customer service to the PPO segment from
the ppoONE.com segment. Summary information by segment as of and for the three
and six month periods ended June 30, 2000 and 1999, are as follows:
<TABLE>
<CAPTION>
For the Three Months Ended June 30, For the Six Months Ended June 30,
2000 1999 2000 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
PPO Segment:
Revenues $ 2,230,420 $ 2,068,370 $ 4,409,726 $ 4,126,847
Operating expenses 1,642,866 1,768,323 3,293,362 3,596,503
------------- ------------- ------------- -------------
Operating profit 587,554 300,047 1,116,364 530,344
Depreciation 26,895 49,313 53,889 98,251
Segment assets 1,645,335 1,975,199 1,645,335 1,975,199
TPA Segment:
Revenues $ 1,261,616 $ 1,599,713 $ 2,605,055 $ 3,339,130
Operating expenses 1,203,670 2,765,920 2,443,597 4,445,745
------------- ------------- ------------- -------------
Operating profit (loss) 57,946 (1,166,207) 161,458 (1,106,615)
Depreciation 42,202 43,657 85,030 84,901
Segment assets 2,418,671 3,245,694 2,418,671 3,245,694
ppoONE.com Segment:
Revenues $ 449,282 $ 271,976 $ 806,281 $ 471,950
Operating expenses 655,771 301,703 1,167,367 626,427
------------- ------------- ------------- -------------
Operating loss (206,489) (29,727) (361,086) (154,477)
Depreciation 11,912 16,716 24,084 33,352
Segment assets 737,396 268,932 737,396 268,932
Value Check Segment:
Revenues $ 158,566 $ 35,359 $ 276,685 $ 67,021
Operating expenses 181,405 115,599 363,707 218,359
------------- ------------- ------------- -------------
Operating loss (22,839) (80,240) (87,022) (151,338)
Depreciation 1,502 1,101 2,955 1,994
Segment assets 194,710 119,469 194,710 119,469
</TABLE>
A reconciliation of the Company's segment revenues, operating profit (loss) and
segment assets to the corresponding consolidated amounts as of and for the three
and six month periods ended June 30, 2000 and 1999, are as follows:
<TABLE>
<CAPTION>
For the Three Months Ended June30, For the Six Months Ended June30,
2000 1999 2000 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Segment revenues $ 4,099,884 $ 3,975,418 $ 8,097,747 $ 8,004,948
Intercompany revenues 145,766 112,739 266,473 230,035
------------- ------------- ------------- -------------
Consolidated revenues $ 3,954,118 $ 3,862,679 $ 7,831,274 $ 7,774,913
============= ============= ============= =============
Segment operating profit (loss) $ 416,172 $ (976,127) $ 829,714 $ (882,086)
Corporate expenses,net 417,273 375,213 815,928 757,987
------------- ------------- ------------- -------------
Consolidated operating profit (loss) $ (1,101) $ (1,351,340) $ 13,786 $ (1,640,073)
============= ============= ============= =============
</TABLE>
8
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<TABLE>
<CAPTION>
June 30,2000 December 31, 1999
----------------- -----------------
<S> <C> <C>
Segment assets $ 4,996,112 $ 4,860,897
Corporate assets 7,598,626 7,600,588
----------------- -----------------
Consolidated assets $ 12,594,738 $ 12,461,485
================= =================
</TABLE>
9
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PART I - ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
THE QUARTER AND SIX MONTHS ENDED JUNE 30, 2000, COMPARED TO THE QUARTER AND SIX
MONTHS ENDED JUNE 30, 1999.
(1) RESULTS OF OPERATIONS
Net revenues for the three and six months ended June 30, 2000 were up
slightly from the comparable 1999 periods. The Company had increased
revenues in all operating segments except the TPA for the three and six
month periods. TPA revenues decreased approximately $338,000 for the
quarter and $734,000 for the six months largely because of the sale in
August 1999 of its unprofitable Dallas division and also because of
customers lost in 1999 which were not completely offset by revenues from
new business. Substantial revenue gains were reported in the ppoONE.com and
ValueCheck segments, which both have been successful in adding new
customers. In addition, PPO revenues continued to increase, following the
trend reported in the first quarter of 2000, reversing the downward trend
experienced in recent years.
Net income for the three and six month periods ended June 30, 2000 was
$2,352 and $15,433 (both less than $.01 per share) compared with net losses
for the comparable 1999 periods of $881,429, or $.21 per share, and
$1,085,869, or $.26 per share. The loss in both 1999 periods included the
$1,225,000 loss from the impairment of goodwill attributable to a division
of the TPA subsidiary sold subsequent to June 30, 1999, reduced by a
deferred tax benefit of $441,000 resulting in a net loss of $784,000, or
$.19 per share. Increased profitability in the PPO and TPA segments and
reduced losses in ValueCheck, which is expected to become profitable on a
monthly basis sometime in the second half of 2000 because of new customers
added, were offset to some extent by increased losses at ppoONE.com. The
Company made the decision to increase spending on the development and
marketing of ppoONE.com's products and services during 2000, and these
costs have increased at a greater rate than revenues added as the result of
new customers.
Salaries and wages decreased slightly for both the three months and six
months ended June 30, 2000, as compared with the respective prior year
periods. Personnel cuts in the TPA as the result of no longer having its
Dallas division in 2000 and the completion of a system conversion effort
completed in 1999 have been offset to a great extent by increasing
personnel in ppoONE.com and ValueCheck as these two rapidly growing
segments increase their customer bases.
Other operating expenses increased by approximately $37,000 for the three
months ended June 30, 2000, and decreased by $92,000 for the six months
ended June 30, 2000, as compared to the same periods in 1999. The
elimination of expenses of the Dallas division of the TPA has been offset
by increased equipment rental and other expenses, primarily in ppoONE.com.
Depreciation and amortization declined approximately $40,000 and $75,000
for the three months and six months ended June 30, 2000, compared to the
same periods in 1999, the majority of which is goodwill amortization in
1999 on the TPA's Dallas division.
Other income (expense) improved for the three months and six months ended
June 30, 2000, from expense of approximately $32,000 and $76,000,
respectively, to income of $5,000 and $11,000 as
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the result of lower interest expense incurred due to substantial reductions
in debt during 1999 as explained in the following section.
(2) LIQUIDITY AND CAPITAL REQUIREMENTS
The Company had net working capital of approximately $1,222,000 at June 30,
2000, compared with $681,000 at December 31, 1999. Unrestricted cash and
cash equivalents were $991,000 at June 30, 2000, compared with $641,000 at
December 31, 1999. Cash used in operations during the first six months of
2000 was approximately $109,000 compared with cash used in operations of
approximately $237,000 during the same period in 1999.
Capital expenditures for the purchase of tangible property and equipment
were approximately $70,000 for the six months ended June 30, 2000. These
expenditures were primarily for computer equipment and peripherals for
ppoONE.com.
In connection with an acquisition in 1998, the Company obtained bank
financing in the form of a $1,600,000 term loan that bears interest at the
bank's prime rate plus 1% (10.5% at June 30, 2000) and is payable in
monthly principal installments of $26,667 plus interest through April 2001.
At June 30, 2000, the Company had $400,000 of outstanding borrowings under
its revolving line of credit arrangement. This credit facility, secured by
accounts receivable, allows for maximum borrowings of $400,000 and bears
interest at the bank's prime rate plus 1.25% (10.75% at June 30, 2000).
The Company's management made the decision to accelerate spending on the
development and marketing of ppoONE.com's products and services.
Management believes that cash flows from operations, cash on hand, and the
borrowing capacity under the Company's line of credit, or alternatively,
refinancing existing debt or the sale of assets will be sufficient to fund
liquidity needs and capital requirements for the fiscal year 2000. The
Company has not paid dividends in the past and does not anticipate the
payment of such in the future.
(3) RELIANCE ON DATA PROCESSING
Beginning in 1996, the TPA started converting its clients from an operating
system that was not Year 2000 compliant to a current Year 2000 compliant
claims processing system operated in the software vendor's data center.
Such conversion took longer than expected but now is completed. The cost to
the Company was approximately $1,000,000 in non-recurring expenses over the
past four years.
The Company began a formal program in 1998 to evaluate, assess and make the
needed changes to all other core information technology ("IT") systems and
applications to comply with Year 2000 issues. The Company's primary PPO IT
systems and applications have been developed and placed into production
within the past thirty months. Accordingly, such systems and applications
were developed employing contemporary software tools to be Year 2000
compliant from their initial design phase. Management used best efforts to
inventory and evaluate all non-essential software programs and hardware
used in the Company's business. Non-compliant systems were replaced,
modified or outsourced.
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<PAGE> 12
Other than the system conversion in the TPA mentioned above, direct
expenditures associated with Year 2000 issues, excluding costs associated
with the development of the underlying core IT systems, have been
immaterial to date and have been funded through the Company's normal IT
operations budget.
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PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
None
ITEM 2 - CHANGES IN SECURITIES
None
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Submissions of matters through the solicitation of proxies were provided to
security holders during the six-month period ended June 30, 2000. These
matters were voted on May 31, 2000 at the annual meeting of shareholders.
The annual meeting involved the election of directors, the approval of the
MedicalControl, Inc. Stock Option and Incentive Plan (the "Stock Option
Plan") and the approval of the MedicalControl, Inc. 2000 Non-Employee
Director Stock Compensation Plan (the "Directors Compensation Plan"). The
following individuals were elected as directors of the Company:
<TABLE>
<CAPTION>
NAME POSITION FOR WITHHELD
---- -------- --- --------
<S> <C> <C> <C>
John Ward Hunt President, Chief 4,458,433 80,900
Executive Officer,
Chairman of the Board
Frank M. Burke, Jr. Director 4,458,433 80,900
David Samuel Coats Director 4,458,433 80,900
William L. Amos, M.D. Director 4,458,433 80,900
</TABLE>
The two plans were approved as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTE
--- ------- ------- --------
<S> <C> <C> <C> <C>
Stock Option Plan 3,066,484 128,058 8,700 1,336,091
Directors Compensation Plan 3,149,092 52,950 1,200 1,336,091
</TABLE>
ITEM 5 - OTHER INFORMATION
None
13
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ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Number Exhibit Description
27.1 Financial Data Schedule
(b) Reports on Form 8-K. The Company has not filed any current report on
Form 8-K during the second quarter of 2000 covered by this report on Form
10-QSB.
14
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
MEDICALCONTROL, INC.
August 14, 2000 /s/ John Ward Hunt
-------------------------------
John Ward Hunt
President and
Chief Executive Officer
/s/ Bob E. Buddendorf
-------------------------------
Bob E. Buddendorf
Senior Vice President and
Chief Financial Officer
15
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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<S> <C>
27.1 Financial Data Schedule
</TABLE>
