U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(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, 1996
___Transition report under Section 13 or 15 (d) of the Securities Exchange
Act of 1934
For the transition period from _____________ to _____________
Commission file number 0-24640
-----------
COMMUNITY MEDICAL TRANSPORT, INC.
------------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)
Delaware 13-3507464
---------------------------- -------------------
(State of Jurisdiction of (I.R.S. Employer)
Incorporation or Organization) Identification No.)
45 Morris Street
Yonkers, NY 10705
----------------------------------------
(Address of Principal Executives Offices)
(914) 963-6666
---------------------------
(Issuer's Telephone Number)
----------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
Check whether the issuer: (1) filed all reports required to be filed by Section
12,.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______________
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
______Check whether the registrant filed all documents and reports required
to be filed by Section 13 or 15 (d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court.
Yes __________ No __________
APPLICABLE ONLY TO CORPORATE ISSUERS
______State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:__3,057,881 shares of common
stock as of March 31, 1996___________
______Transitional Small Business Disclosure Format (check one):
Yes __________ No ____X______
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC. AND SUBSIDIARIES
INDEX
-----
Page
Part I. Financial Information
Item I. Financial Statements
Consolidated Balance Sheets at March 31, 1996
(unaudited) and December 31, 1995 2
Consolidated Statements of Income for the Three Months
Ended March 31, 1996 and 1995 (unaudited) 3
Consolidated Statements of Cash Flows for the Three
Months Ended March 31, 1996 and 1995 (unaudited) 4
Notes to Consolidated Financial Statements 5
Item 2 Management's Discussion and Analysis of Financial
Condition and results of Operations 6-7
Part II. Other information
Item 6. Exhibits and reports on Form 8-K 8
Signature 9
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE><CAPTION>
ASSETS
March 31, 1996 December 31, 1995
-------------- -----------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents................................... $ 472,000 $ 25,000
Short-term Investments...................................... 2,050,000 2,056,000
Accounts receivable, trade, less allowance for
doubtful accounts......................................... 2,689,000 2,866,000
Prepaid insurance and other current assets.................. 1,078,000 566,000
----------- -----------
Total Current Assets................................. 6,289,000 5,513,000
Property, equipment and leasehold
improvements - net........................................ 1,662,000 1,556,000
Customer lists - net........................................ 522,000 542,000
License - net............................................... 289,000 291,000
Other assets................................................ 637,000 478,000
Good will................................................... 542,000 547,000
----------- -----------
Total Assets......................................... $ 9,941,000 $ 8,927,000
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt........................... $ 806,000 $ 796,000
Accounts payable and accrued expenses....................... 951,000 561,000
Current portion of capitalized lease obligations............ 19,000 30,000
Deferred taxes payable...................................... 872,000 741,000
----------- -----------
Total Current Liabilities............................ 2,648,000 2,128,000
Long-term Debt:
Long-term debt - net of current portion..................... 1,766,000 1,691,000
Deferred taxes payable...................................... 0 23,000
----------- -----------
Total Liabilities.................................... 4,414,000 3,842,000
----------- -----------
Stockholders' Equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized,
none issued
Class A nonvoting common stock, $.001 par value, 10,000,000 shares authorized,
none issued
Common stock, $.001 par value, 20,000,000 shares authorized,
3,057,881 shares issued and outstanding................... 3,000 3,000
Capital in excess of par value.............................. 4,877,000 4,593,000
Retained earnings........................................... 647,000 489,000
----------- -----------
Total Stockholders' Equity........................... 5,527,000 5,085,000
----------- -----------
Total Liabilities and Stockholders' Equity........... $ 9,941,000 $ 8,927,000
=========== ===========
page 2
</TABLE>
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC. AND SUBSIDIARIES
Consolidated Statements of Income
- Unaudited -
Three Months Ended
March 31,
-----------------------
1996 1995
---- ----
Revenue $2,557,000 $1,205,000
----------- -----------
Operating expenses:
Salaries and benefits 1,071,000 487,000
Fleet Maintenance 177,000 96,000
Insurance 215,000 117,000
Rent 35,000 23,000
Depreciation and amortization 64,000 37,000
----------- -----------
Total operating expenses 1,562,000 760,000
----------- -----------
Gross profit 995,000 445,000
Selling, general and administrative 677,000 275,000
----------- -----------
Income from operations 318,000 170,000
Interest (income) expense - net 50,000 (41,000)
----------- -----------
INCOME BEFORE PROVISION
FOR INCOME TAXES 268,000 211,000
PROVISION FOR INCOME TAXES 110,000 93,000
----------- -----------
NET INCOME $ 158,000 $ 118,000
=========== ===========
NET INCOME PER SHARE $ .05 $ .04
=========== ===========
SHARES USED IN COMPUTING NET
INCOME PER SHARE 3,468,500 3,123,200
=========== ===========
page 3
<PAGE>
<TABLE><CAPTION>
COMMUNITY MEDICAL TRANSPORT, INC, AND SUBSIDIARIES
Consolidated Statement of Cash Flows
Three Months Ended
March 31,
---------
1996 1995
---- ----
(Unaudited)
<S> <C> <C>
Cash flow from operating activities:
Net income........................................................ $ 158,000 $ 118,000
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Depreciation & amortization expense............................... 101,000 37,000
Changes in operating assets and liabilities:
Decrease (Increase) in accounts receivable-trade net.............. 177,000 (234,000)
(Increase) in prepaid expenses
and other current assets..................................... (512,000) (218,000)
(Increase) in other assets........................................ (159,000) 0
Increase in accounts payable
and accrued expenses......................................... 390,000 103,000
(Decrease) income taxes payable................................... 0 (24,000)
Increase in deferred taxes payable................................ 108,000 85,000
---------- ----------
Net cash provided by (used in) operating activities............... 263,000 (133,000)
---------- ----------
Cash used in investing activities:
Acquisition of equipment-net of disposals......................... (180,000) (130,000)
Decrease in related parties receivable............................ 0 20,000
Decrease in short term investments................................ 6,000 85,000
---------- ----------
Net cash (used in) investing activities........................... (174,000) (25,000)
---------- ----------
Cash flow from financing activities:
Proceeds from bank borrowings..................................... 200,000 175,000
Principal payments on debt........................................ (115,000) (70,000)
Principal payments on capital lease obligations................... (11,000) (15,000)
Increase (Decrease) in Paid in capital............................ 284,000 (13,000)
---------- ----------
Net cash provided by financing activities......................... 358,000 77,000
---------- ----------
NET INCREASE (DECREASE) IN CASH................................... 447,000 (81,000)
CASH - BEGINNING OF PERIOD........................................ 25,000 283,000
---------- ----------
CASH - END OF PERIOD.............................................. $ 472,000 $ 202,000
=========== =========
page 4
</TABLE>
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
In October 1994, the Company completed a public offering of 1,136,200
shares of its common stock pursuant to a registration statement which was
declared effective by the Securities and Exchange Commission on October 1, 1994,
resulting in net proceeds of $3,343,000.
(Note A) - Organization and Basis of Presentation:
The accompanying (unaudited) interim consolidated financial statements
include the accounts of Community Medical Transport, Inc. (the "Company") and
its two subsidiaries, Community Ambulette Service, Inc. ("Ambulette") and First
Help Ambulance and Ambulette, Inc. ("First Help"), which are wholly owned by the
Company. On June 13, 1994, the Company changed its name from Regent Management
Group, Inc. to Community Medical Transport, Inc. All intercompany balances and
transactions have been eliminated in consolidation.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to form 10-QSB. Accordingly they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of Management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three month period ended March 31, 1996 are not necessarily
indicative of the results that may be expected for the year ending December 31,
1996. For further information refer to financial statements and footnotes
thereto included in Company's 10-KSB.
(Note B) - Acquisitions
The Company completed its public offering and at that time consummated
its acquisition of Community Ambulette and First Help which was treated as a
pooling of interests. Accordingly the three companies are now reported as
consolidated. Until this time the financial statement presentations were
presented on a combined basis.
In February of 1994 the Company commenced the business of First Help.
The original acquisition of the shares occurred in December of 1993. At the time
First Help was dormant but it owned a license which enabled the Company to
provide Ambulance service to the New York Area.
On November 1, 1995 The Company completed the acquisition of Medical
Transportation Corporation. The Company acquired equipment, ambulettes, customer
lists, and goodwill for $689,000 cash with a balance of $399,000 (net of imputed
interest of $57,000) to be paid in equal amounts on October 31, 1996 and October
31, 1997. The Company currently is considering several additional acquisitions
in the second quarter of 1996.
page 5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Three Months Ended March 31, 1996 Compared to Three Months Ended March 31, 1995
Overview
For all periods presented, the following financial information includes
the accounts of First Help Ambulance and Ambulette Service Inc., and Community
Ambulette Service Inc., which were acquired in October 1994 in transactions
accounted for as a pooling-of-interests. Upon the acquisition Community
Ambulette and First Help became wholly owned subsidiaries of Community Medical
Transport. In November 1995 The Company acquired Medical Transportation
Corporation, and as such, their revenues and corresponding expenses are included
for the three months ended March 31, 1996, and not included for the three months
ended March 31, 1995.
The Company's total revenue, which is comprised primarily of ambulette
and ambulance service fees charged to Medicare, Medicaid, other third party
payers such as private insurance carriers and health maintenance organizations,
and directly to patients, is presented net of contractual adjustments.
Results of Operations
The Company's total revenue amounted to $2,557,000 for the three months
ended March 31, 1996, as compared with $1,205,000 for the three months ended
March 31, 1995, an increase of $1,352,000 or 112%. The increase reflects
increased volume generated from new customers as well as the acquisition
completed in 1995.
Operating expenses increased by $802,000 or 106% to $1,562,000 for the
three months ended March 31, 1996 from $760,000 for the three months ended March
31, 1995. The increase is primarily attributed to an increase of labor and
insurance costs, through acquisitions of additional ambulances and ambulettes.
Gross profit increased by $550,000 or 124% to $995,000 for the three
months ended March 31, 1996 from $445,000 for the three months ended March 31,
1995. Gross profit as a percentage of revenues increased to 38.9% for the three
months ended March 31, 1996 from 36.9% for the three months ended March 31,
1995. This increase is primarily attributed to increased efficiency in operating
expenses.
Selling, general and administrative expenses increased by $402,000 or
146% to $677,000 for the three months ended March 31, 1996, from $275,000 for
the three months ended March 31, 1995. Such expenses as a percentage of revenues
increased by 3.7% primarily as a result of increased management payroll costs
for added personnel to accommodate anticipated increased volume.
Interest expense increased by $63,000 or 450% to $77,000 for the three
months ended March 31,1996 compared to $14,000 for the three months ended March
31, 1995. The increase in interest expense is attributable primarily to an
increase in bank loans. Interest income decreased by $28,000 to $27,000 for the
three months ended March 31, 1996 compared to $55,000 for the three months ended
March 31, 1995.
The Company's income taxes amounted to $110,000 for the three months
ended March 31, 1996, representing an effective rate of 41% compared with income
taxes of $93,000 for the three months ended March 31, 1995 representing an
effective rate of 44%.
page 6
<PAGE>
The Company's net income amounted to $158,000 or $.05 per share for the
three months ended March 31, 1996, as compared to net income of $118,000 or $.04
per share for the three months ended March 31, 1995.
Although the completion of any of the contemplated acquisitions
discussed above will increase the revenues and expenses of the Company, there
can be no assurance that future net income will be positively impacted. The
company also can not predict the future impact of changes in Medicaid
reinbursment beginning June 1, 1996 which may increase and decrease rates for
different categories.
Seasonality
In the past the Company generally has not experienced seasonal
fluctuation. However, the severe winter weather conditions, such as experienced
in the New York Metropolitan area during the first quarter of 1996, has had an
adverse effect on the Company's revenues.
Liquidity and Capital Resources
Working capital at March 31, 1996 amounted to $3,641,000 as compared to
$3,385,000 at March 31, 1995. The Company believes that internally generated
funds, the balance of the proceeds of the Public Offering and bank loans will
provide sufficient liquidity and enable it to meet its currently foreseeable
working capital requirements for operations for at least the next 12 months. The
Company is actively considering a number of acquisitions as of March 31, 1996,
several of which require significant cash payments. Additional financing will be
required in connection with the Company's acquisition program.
Based on the Company's current arrangements with its employees, which
do not provide for postemployment benefits, the Company believes that the
adoption of SFAS 112 on postemployment benefits will not have a material effect
on the Company's financial condition and results of operation.
Inflation
The Company believes that the relatively moderate rate of inflation in
recent years have not had a significant impact on its net revenues or its
profitability.
page 7
<PAGE>
EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K - Not Applicable
page 8
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized on the 10th day of May, 1996.
Community Medical Transport, Inc.
(registrant)
/s/ Dean L. Sloane
--------------------------------------
Dean L. Sloane
President and Chief Executive Officer
/s/ Donald J. Panos
--------------------------------------
Donald J. Panos
Chief Financial Officer, Principal
Financial Officer and Principal
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000925602
<NAME> COMMUNITY MEDICAL TRANSPORT, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 472,000
<SECURITIES> 2,050,000
<RECEIVABLES> 2,792,000
<ALLOWANCES> 103,000
<INVENTORY> 0
<CURRENT-ASSETS> 6,289,000
<PP&E> 2,658,000
<DEPRECIATION> 996,000
<TOTAL-ASSETS> 9,941,000
<CURRENT-LIABILITIES> 2,648,000
<BONDS> 0
0
0
<COMMON> 3,000
<OTHER-SE> 5,524,000
<TOTAL-LIABILITY-AND-EQUITY> 9,941,000
<SALES> 0
<TOTAL-REVENUES> 2,557,000
<CGS> 0
<TOTAL-COSTS> 1,562,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 50,000
<INCOME-PRETAX> 268,000
<INCOME-TAX> 110,000
<INCOME-CONTINUING> 158,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 158,000
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>
