<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999
--------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ______________________ TO ______________________
COMMISSION FILE NUMBER 1-13177
---------------
INTEGRA, INC.
-------------
(Exact name of registrant as specified in its charter)
Delaware 13-3605119
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1060 First Avenue - Suite 410
King of Prussia, PA 19406
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(610) 992-2600
- ----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 such filing
requirements for the past 90 days. Yes X . No .
--- ---
As of May 5, 1999, Integra, Inc. had 10,138,552 shares of common stock, $0.01
par value, outstanding.
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<PAGE> 2
INTEGRA, INC.
FORM 10-Q - QUARTER ENDED MARCH 31, 1999
INDEX
<TABLE>
<CAPTION>
FORM 10-Q FORM 10-Q FORM 10-Q
PART NO: ITEM NO. DESCRIPTION PAGE NO.
-------- -------- ----------- --------
<S> <C> <C> <C>
I. FINANCIAL INFORMATION
1. Financial Statements
- Consolidated Statements of
Operations for the Three Months
Ended March 31, 1999 and 1998 3
- Consolidated Balance Sheets
as of March 31, 1999 and
December 31, 1998 4
- Consolidated Statements of
Cash Flows for the Three Months
Ended March 31, 1999 and 1998 5
- Consolidated Statement of
Changes in Stockholders' Equity
for the Three Months Ended
March 31, 1999 6
- Notes to Consolidated Financial
Statements 7
2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
II. OTHER INFORMATION
1. Legal Proceedings 14
6. Exhibits and Reports on Form 8-K 15
Signatures 16
Index to Exhibits 17
</TABLE>
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<PAGE> 3
INTEGRA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------
1999 1998
------------ ------------
<S> <C> <C>
Net revenues:
Patient service revenue $ 12,565
Premium revenue $ 6,356 2,839
------------ ------------
Total net revenues 6,356 15,404
------------ ------------
Cost of revenues:
Patient service costs 10,126
Premium service costs 4,212 1,734
------------ ------------
Total cost of revenues 4,212 11,860
------------ ------------
Gross profit 2,144 3,544
Selling and administrative expenses 1,287 2,493
Provision for doubtful accounts 770
Amortization of intangible assets and excess cost over fair
value of net assets acquired 121 420
------------ ------------
Income (loss) from operations 736 (139)
Interest expense, net 10 310
------------ ------------
Income (loss) before income taxes 726 (449)
Provision for income taxes 31 32
------------ ------------
Net income (loss) $ 695 $ (481)
============ ============
Basic and diluted net income (loss) per
common share $ 0.07 $ (0.05)
============ ============
Weighted averaged shares outstanding:
Basic 10,138,552 10,062,736
============ ============
Assuming dilution 10,528,748 10,062,736
============ ============
</TABLE>
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<PAGE> 4
INTEGRA, INC.
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1999 1998
-------- --------
Current assets: (Unaudited)
<S> <C> <C>
Cash and cash equivalents $ 1,346 $ 2,452
Accounts receivable, net of allowance for doubtful
accounts of $71 in 1999 and $73 in 1998 1,082 591
Other accounts receivable 294 531
Other current assets 418 442
-------- --------
Total current assets 3,140 4,016
Property and equipment, net of accumulated amortization of $983 in 1999
and $833 in 1998 1,750 1,683
Intangible assets and excess cost over fair value of net assets
acquired, net of accumulated amortization of $1,324 in 1999 and
$1,203 in 1998 10,199 10,320
Other assets, net 50 16
-------- --------
$ 15,139 $ 16,035
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 113 $ 413
Accounts payable 109 594
Accrued expenses and other current liabilities 8,899 8,547
-------- --------
Total current liabilities 9,121 9,464
Long-term debt 1,250
Other long-term liabilities 3
Deferred income tax liability 356 356
-------- --------
Total liabilities 9,477 11,073
-------- --------
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value, 20,000,000 shares 101 101
authorized; issued 10,138,552 in 1999 and 1998
Capital in excess of par value 87,508 87,508
Accumulated deficit (81,947) (82,642)
Deferred compensation 0 (5)
-------- --------
Total stockholders' equity 5,662 4,962
======== ========
$ 15,139 $ 16,035
======== ========
</TABLE>
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<PAGE> 5
INTEGRA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended
March 31, 1999
--------------------------
1999 1998
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 695 $ (481)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operations:
Depreciation and amortization 271 604
Provision for doubtful accounts 770
Changes in assets and liabilities, net of effects of businesses acquired:
Increase in accounts receivable (491) (716)
Decrease in other current assets 68 214
Decrease in accounts payable (485) (465)
Increase (decrease) in accrued expenses and other
current liabilities 1,050 (301)
Increase in other assets and other liabilities (31) (75)
------- -------
Net cash provided by (used in) operating
activities 1,077 (450)
------- -------
Cash flows from investing activities:
Additional payments for business acquired in prior years (416) (1,265)
Net proceeds from disposition of businesses 400
Purchases of property and equipment (217) (136)
------- -------
Net cash used in investing activities (633) (1,001)
------- -------
Cash flows from financing activities:
Proceeds from borrowings 2,200
Principal payments on long-term obligations (1,550) (965)
------- -------
Net cash (used in) provided by financing
activities (1,550) 1,235
------- -------
Net decrease in cash and cash equivalents (1,106) (216)
Cash and cash equivalents at beginning of period 2,452 2,154
------- -------
Cash and cash equivalents at end of period $ 1,346 $ 1,938
======= =======
Supplemental disclosures of cash flow information:
Interest paid $ 26 $ 382
======= =======
Income taxes paid $ 171 $ 31
======= =======
</TABLE>
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<PAGE> 6
INTEGRA, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON SHARES CAPITAL IN
------------------------ EXCESS OF ACCUMULATED DEFERRED
NUMBER PAR VALUE PAR VALUE DEFICIT COMPENSATION TOTAL
------ --------- --------- ------- ------------ -----
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1998 10,139 $101 $87,508 $(82,642) $ (5) $4,962
Amortization of deferred
compensation 5 5
Net income 695 695
------ --------- ------- -------- ---------- ------
Balance at March 31, 1999
(unaudited) 10,139 $101 $87,508 $(81,947) $ -- $5,662
====== ========= ======= ========= ========== ======
</TABLE>
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<PAGE> 7
INTEGRA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
(Dollars in thousands, except share and per share data)
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying consolidated financial statements are unaudited. These
statements have been prepared in accordance with the rules and regulations of
the Securities and Exchange Commission and should be read in conjunction with
the Company's consolidated financial statements and notes thereto for the year
ended December 31, 1998 included in its Form 10-K filed with the Securities and
Exchange Commission on March 30, 1999. Certain information and note disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to such
rules and regulations. In the opinion of Company management, the consolidated
financial statements for the unaudited interim periods presented include all
adjustments, consisting only of normal recurring adjustments, necessary to
present a fair statement of the results for such interim periods.
Certain prior period amounts have been reclassified to conform to the
current period presentation.
Operating results for the three month period ended March 31, 1999 are
not necessarily indicative of the results that may be expected for a full year
or any portion thereof.
NOTE 2 - INCOME TAXES
The provision for income taxes is based on the Company's estimated
effective income tax rate for 1999. At December 31, 1998, the Company had net
operating loss carryforwards for federal income tax purposes of approximately
$36,000. The Company will only be able to use the net operating loss
carryforwards against future taxable earnings of the Company. In addition, as
specified in the Internal Revenue Code, the Company's ability to use certain of
the net operating loss carryforwards is limited as they were acquired by the
Company in a purchase of the stock of other companies. The carryforwards expire
in varying amounts through 2013. A valuation reserve has been established
against the potential future benefit of the net operating loss carryforwards and
other deferred tax assets.
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<PAGE> 8
INTEGRA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999
(Dollars in thousands, except share and per share data)
(Unaudited)
NOTE 3 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
------ ------
<S> <C> <C>
Medical claims and clinician fees $3,124 $1,359
Acquisition and sale related costs 605 1,070
Salaries and vacation 498 614
Restructuring costs 681 1,421
Long-term care and provider billing reserves 3,018 3,018
Other 973 975
------ ------
$8,899 $8,457
====== ======
</TABLE>
Medical claims and clinician fees payable primarily represents the
liability for healthcare services authorized or incurred and not yet paid by the
Company's managed behavioral healthcare business. Medical claims payable are
estimated based upon authorized healthcare services, past claim payment
experience for member groups, patient census data and other factors. Effective
January 1, 1999, the Company implemented coverage on a capitated contract in New
York State which covers over 350,000 members and is currently the Company's
largest contract. The Company estimates the medical claims payable for this
contract in a manner similar to it existing contracts, however, the Company has
not yet fully developed its own historical experience with this contract. As the
Company continues to provide coverage and pay claims for this contract,
management will make necessary revisions in the estimates used for medical
claims payable. While the Company believes the liability for medical claims
payable is adequate, actual results could differ from such estimates.
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<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
OVERVIEW
The Company provides managed behavioral healthcare services through
full and shared risk arrangements with employers, health plans and managed care
organizations to perform behavioral health services on a capitated per member
per month basis. In addition, the Company provides an array of managed
behavioral health services including: employee assistance programs; third party
clinical case management and claims administration. Integra's contract service
areas were principally concentrated in Connecticut, Delaware, Maryland, New
Jersey, New York, Pennsylvania, Rhode Island, Virginia and Tennessee.
SALE AND DIVESTITURE OF PATIENT SERVICE AND PROVIDER SEGMENT
In December 1997, the Company announced its plans to sell and divest
its outpatient behavioral health group practice operations. The Company entered
into an agreement to sell substantially all of the assets of the outpatient
behavioral practice business (the "Sale"), except for practices located in the
Western region of the United States which the Company has sold or shut down. The
Sale was completed effective May 18, 1998 and resulted in the divestiture by the
Company of substantially all the assets and business of the Company's outpatient
behavioral health practices. As of December 31, 1997, the outpatient behavioral
health practice business accounted for approximately eight-four percent (84%) of
the assets of the Company (before the impact of the write down of assets held
for sale and the impact of the restructuring charge); and for the year ended
December 31, 1997, approximately eighty-three percent (83%) of the Company's net
revenues. As a result of the Sale, the Company is significantly smaller in terms
of revenues and assets. Patient service revenues and cost of revenues pertained
solely to the outpatient business and as a result of the exit of this segment,
the Company no longer performs direct patient service and hence has no patient
service revenues or patient service costs.
RESULTS OF OPERATIONS
PREMIUM REVENUE
Premium revenue pertains to the Company's managed behavioral healthcare
business which maintains a portfolio of agreements with managed care
organizations and corporations to provide inpatient and outpatient behavioral
health services. Revenues are primarily generated by capitated managed
behavioral healthcare and employee assistance programs. The fees are defined by
contract and are primarily calculated on a fixed per member per month fee.
Revenues under these contracts are recorded in the month for which the member is
entitled to services. Generally, these membership contracts are on a one to
three year basis subject to cancellation by either party without cause at any
time with thirty to ninety days written notice.
Premium revenues for the three-month period ended March 31, 1999
increased to $6,356 from $2,839 for the same period of the prior year. This
increase is primarily the result of one new contract in New York State for which
the Company implemented coverage on a capitated basis effective January 1, 1999.
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<PAGE> 10
PREMIUM SERVICE COSTS
Premium service costs are primarily comprised of medical claims and
personnel costs associated with the Company's service delivery, support and
management of the Company's portfolio of behavioral healthcare contracts. The
Company estimates the medical claims cost of providing services under these
agreements, including a reserve for services incurred, but not reported, based
upon authorized services, past claim payment experience for member groups,
census data and other facts. The Company typically does not subcapitate the risk
of providing services under these contracts, but the Company arranges discounted
fee-for-service rates with independent inpatient and outpatient behavioral
health providers, which the Company manages.
Under capitated contracts, the Company is responsible for ensuring
appropriate access to care and bears the risk for utilization levels and pricing
of the cost of services performed under these contracts. The Company believes
the future revenues under these contracts will exceed the costs of services it
will be required to provide under the terms of the contracts. An underestimation
in the utilization or price of services for these contracts could result in
material losses to the Company. Historically, Integra has managed these
capitated contracts profitably. The Company maintains no re-insurance against
the risk of loss under these contracts.
The premium service costs increased to $4,212 for the three-months
ended March 31, 1999 from $1,734 for the same period in the prior year. This
increase is primarily a result of the coverage implemented on new contracts.
SELLING AND ADMINISTRATIVE EXPENSES
Selling and administrative expenses are primarily comprised of
corporate office, sales and administration. Selling and administrative expenses
decreased to $1,287 for the three months ended March 31, 1999 from $2,493 for
the same period in 1998. The decrease is essentially a result of the impact of
operations sold and the downsizing of the corporate office.
PROVISION OF DOUBTFUL ACCOUNTS
There was no provision for doubtful accounts for the three-month period
ended March 31, 1999 as compared to $770 for the comparable period in 1998. This
decrease is a result of the Sale and exit of the outpatient provider operations.
The Company's managed behavioral healthcare business has historically had
minimal provision for doubtful accounts.
INTEREST EXPENSE, NET
Interest expense, net, decreased to $10 for the three months ended
March 31, 1999 from $310 for the same period in the prior year. This decrease is
primarily due primarily to the pay down of bank debt with proceeds from the Sale
which occurred in May 1998.
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<PAGE> 11
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operations was $1,077 for the three months ended
March 31, 1999, compared to net cash used in operations of ($450) for the same
period in the prior year. Cash and cash equivalents decreased to $1,346 at March
31, 1999 from $2,452 at December 31, 1998.
At March 31, 1999 the Company had a working capital deficit of $5,981.
The deficit is primarily attributable to accrued liabilities of $4,304 which
pertain to the exit of the outpatient provider behavioral group practice
business and reserves established for long-term care and other provider billing
matters. Although these amounts are classified as current due to their nature,
the Company does not expect that all of these amounts will require payments in
the next year. The remainder of the Company's accrued liabilities are operating
in nature.
The Company has established a Credit Facility with PNC Bank. At March
31, 1999, borrowing availability under this Credit Facility was approximately
$8,000. The Credit Facility is secured by substantially all of the assets of the
Company. If necessary, the Company will use its Credit Facility to fund working
capital requirements.
As a result of the above, the Company believes that the cash flow
generated by the Company's operations together with its existing cash and
availability of additional borrowings under its Credit Facility will be
sufficient to meet the Company's cash requirements in 1999.
The Company's current ratio, working capital and debt to equity ratio
are set forth below for the dates indicated:
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
-------------- -----------------
<S> <C> <C>
Current Ratio ................................... .34:1 .42:1
Working Capital Deficit.......................... $(5,981) $(5,448)
Debt to Equity .................................. .02:1 .34:1
</TABLE>
INFLATION
A significant portion of the Company's operating expenses have been
subject to inflationary increases, including clinical and administrative
salaries and rent expense. Based on management's assessment, the Company has
historically been unable to substantially offset inflationary increases through
price increases. The Company believes it has somewhat mitigated the effect by
expanding services and increasing operating efficiencies. There can be no
assurance that the Company will be able to offset future inflationary increases
in expenses, if any, which would result in a dilutive impact on the Company's
future earnings.
NEW CONTRACT
Effective January 1, 1999, the Company implemented coverage of a
full-risk capitated contract with a health plan covering approximately 350,000
members. The Company expects this contract will generate over $11,000 in annual
revenues and is currently the Company's largest contract. Profitability under
this contract will depend upon the Company's ability to manage the utilization
of services within the premiums received. An underestimation in the expected
utilization of services for this contract could result in a material loss to the
Company.
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<PAGE> 12
POTENTIAL IMPACT OF YEAR 2000 COMPUTER ISSUES
The year 2000 problem is primarily the result of two potential
malfunctions that could have an impact on the Company's systems and equipment.
The first problem arises due to computers being programmed to use two rather
than four digits to define the applicable year. The second problem arises in
embedded chips where microchips and microcontrollers have been designed using
two rather than four digits to define the applicable year. Certain of the
Company's computers, programs, and building infrastructure components (e.g.
alarm systems and HVAC systems) are date sensitive and may recognize a date
using "00" as the year 1900 rather than the year 2000.
The Company relies on information technology ("IT") systems and other
systems and facilities such as telephones, building access control systems and
heating and ventilation equipment ("Embedded Systems") to conduct its business.
These systems are potentially vulnerable to year 2000 problems due to their use
of date information. The Company also has business relationships with customers
and healthcare providers and other critical vendors who are themselves reliant
on IT and Embedded Systems to conduct their businesses.
State of Readiness
The Company's internal IT systems are largely centralized and consist
primarily of purchased software. The Company's IT hardware infrastructure is
built mainly around IBM PC compatible servers and desktop systems. The Company's
IT software primarily utilizes Microsoft systems including SQL Server, Windows
NT, Internet Information Server, Exchange and Office. The Company believes these
systems are either compliant or, with soon to be released "service packs" from
Microsoft, will be compliant by September 30, 1999. The Company's clinical and
claims administration software has been certified by the vendor as being year
2000 compliant. The Company intends to complete testing of this system by July
1999. Year 2000 remediation costs incurred in 1998 were approximately $100 and
are estimated at under $250 in 1999.
External Relationship
The Company also faces the risk that one or more of its critical
suppliers or customers ("External Relationships") will not be able to interact
with the Company due to the third party's inability to resolve its own year 2000
issues, including those associated with its own External Relationships. The
Company has been assessing its External Relationships and risk rating each
External Relationship based upon the potential business impact, available
alternatives and cost of substitution. The Company is attempting to determine
the overall year 2000 readiness of its External Relationships. In the case of
significant customers and mission critical suppliers such as banks,
telecommunications providers and other utilities and IT vendors, the Company is
engaged in discussions with the third parties and is attempting to obtain
detailed information as to those parties' year 2000 plans and state of
readiness. The Company, however, does not have sufficient information at the
current time to predict whether its External Relationships will be year 2000
ready.
Risks and Contingency/Recovery Planning
If the Company's year 2000 issues were unresolved, it is possible the
Company would not have the ability to accurately and timely authorize and
process benefits and claims, accurately bill customers, assess claims exposure,
determine liquidity requirements, report accurate data to management,
stockholders, customers, regulators and others, and would be subject to business
interruptions or shutdowns, financial losses, reputational harm, loss of
significant customers, increased scrutiny by regulators and litigation related
to year
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<PAGE> 13
2000 issues. The Company is attempting to limit the potential impact of the year
2000 by monitoring the progress of its own year 2000 project and those of its
critical External Relationships and by developing contingency/recovery plans.
The Company cannot guarantee that it will be able to resolve all of its year
2000 issues. Any critical unresolved year 2000 issues of the Company or its
External Relationships, however, could have a material adverse effect on the
Company's results of operations, liquidity or financial condition.
The Company is developing contingency/recovery plans aimed at
maintaining the continuity of critical business functions before and after
December 31, 1999. As part of that process, the Company is developing manual
work alternatives to automated processes which will be designed to maintain
business continuity. These manual alternatives presume, however, that basic
infrastructure such as electrical power and telephone service, as well as
purchased systems which are advertised to be year 2000 compliant by their
manufacturers (primarily IT hardware and software) will remain unaffected by the
year 2000 problem.
CAUTIONARY STATEMENT
Matters discussed above contained forward-looking statements that are
based on the Company's estimates, assumptions and projections. Major factors
which could cause results to differ materially from those expected by management
include the timing and nature of reimbursement changes, the nature of changes in
laws and regulations that govern various aspects of the Company's business, new
criteria adopted to determine medical necessity for behavioral health services,
the outcome of post-payment reviews of the Company's billings to Medicare
patients in long-term care facilities, Year 2000 issues, pricing of managed care
and other third party contracts, the utilization and cost of services under the
Company's capitated contracts, the direction and success of competitors,
management retention and unanticipated market changes.
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<PAGE> 14
INTEGRA, INC.
FORM 10-Q - QUARTER ENDED MARCH 31, 1999
PART II
ITEM 1 - LEGAL PROCEEDINGS
From time to time, the Company is a party to certain claims, suits and
complaints which arise in the course of business.
In March 1998, the Company received notification that the Medicare
Intermediary in California completed a post payment medical review of billings
previously submitted and paid between 1990 and 1994. Based on the results of
their review, the Intermediary has requested a refund of approximately
$1,200,000. Services were denied primarily on the basis of medical necessity and
incomplete documentation. The Company has requested an administrative hearing.
At December 31, 1997, the Company fully reserved the above amount and recorded a
reserve of $1,600,000 for other potential exposures pertaining to provider
billing and long-term care services.
In April 1998, the Company received notice that the Office of the
Attorney General of New York State ("the State") was conducting an audit of the
New York Medicaid billings of one of the outpatient provider operations with
which it had an Administrative Services Agreement. The State was investigating
whether the Company had any liability arising from the operation of, and its
relationship with, that provider. In October 1998, the Company terminated its
relationship with that provider. In May 1999, the Company reached a settlement
agreement with the State which resolves all claims against the Company relating
to this matter. Terms of the settlement include a payment of $382,000 plus
$18,000 of interest. These amounts were fully accrued as of March 31, 1999.
Although management believes that established reserves for the above
matters are sufficient, it is possible that the final resolution of these
matters may exceed the established reserves by an amount which could be material
to the Company's results of operations. Due to the nature of these matters the
Company cannot predict when these matters will be resolved. The Company does not
believe the ultimate outcome of these matters will have a material adverse
effect on the Company's overall financial condition, liquidity or operations.
Currently, there are no other such claims, suits or complaints that, in
the opinion of management, would have a material adverse effect on the Company's
financial position, results of operations or liquidity.
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<PAGE> 15
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
a) The exhibits required to be filed as part of this Quarterly
Report on Form 10-Q are contained in the attached Index to Exhibits.
b) Current Reports on Form 8-K: None
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<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
INTEGRA, INC.
-----------------------
(registrant)
May 12, 1999 /s/Mark D. Gibson
- ---------------- -----------------------
(Date) Mark D. Gibson
Chief Financial Officer
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<PAGE> 17
INDEX TO EXHIBITS
27 Financial Data Schedule, which is submitted electronically to the
Securities and Exchange Commission for information only and not filed.
17 of 17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A) THE
CONSOLIDATED BALANCE SHEET AT MARCH 31, 1999 AND THE CONSOLIDATED STATEMENTS OF
OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH (B) FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 1,346
<SECURITIES> 0
<RECEIVABLES> 1,153
<ALLOWANCES> 71
<INVENTORY> 0
<CURRENT-ASSETS> 3,140
<PP&E> 2,733
<DEPRECIATION> 983
<TOTAL-ASSETS> 15,139
<CURRENT-LIABILITIES> 9,121
<BONDS> 0
0
0
<COMMON> 101
<OTHER-SE> 5,561
<TOTAL-LIABILITY-AND-EQUITY> 15,139
<SALES> 0
<TOTAL-REVENUES> 6,356
<CGS> 0
<TOTAL-COSTS> 4,212
<OTHER-EXPENSES> 1,287
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10
<INCOME-PRETAX> 726
<INCOME-TAX> 31
<INCOME-CONTINUING> 695
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 695
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
