<PAGE>
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, 1997
----- 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 or other 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
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 12, 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: 4,965,226 shares of
common stock as of May 8, 1997
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, 1997
(unaudited) and December 31, 1996 2
Consolidated Statements of Income for the Three Months
Ended March 31, 1997 (unaudited) and 1996 (unaudited) 3
Consolidated Statements of Cash Flows for the Three
Months Ended March 31, 1997 (unaudited) and 1996
(unaudited) 4
Notes to Consolidated Financial Statements 5-7
Item II. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-10
Part II. Other Information
Item 6. Exhibits and reports on Form 8-K 11
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<CAPTION>
ASSETS
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents................................... $1,006,000 $1,037,000
Short-term Investments...................................... 1,589,000 1,733,000
Accounts receivable, trade, less allowance for
doubtful accounts......................................... 5,807,000 5,071,000
Prepaid insurance........................................... 488,000 608,000
Prepaid Income Taxes........................................ 38,000 213,000
Other Current Assets........................................ 751,000 873,000
----------- ----------
Total Current Assets................................. 9,679,000 9,535,000
Property, equipment and leasehold
improvements - net........................................ 3,477,000 3,047,000
Customer lists - net........................................ 2,910,000 2,993,000
License - net............................................... 601,000 605,000
Other assets................................................ 1,382,000 1,379,000
Goodwill - net.............................................. 5,237,000 5,290,000
Covenant not to compete, net................................ 150,000 167,000
------------ ------------
Total Assets......................................... $ 23,436,000 $ 23,016,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt........................... $1,536,000 $ 1,495,000
Accounts payable and accrued expenses....................... 2,292,000 2,204,000
Deferred taxes payable...................................... 604,000 852,000
---------- -----------
Total Current Liabilities............................ 4,432,000 4,551,000
Long-term Debt:
Long-term debt - net of current portion..................... 5,520,000 5,136,000
Deferred taxes payable...................................... 127,000 119,000
---------- -----------
Total Liabilities.................................... 10,079,000 9,806,000
---------- ----------
Stockholders' Equity (Note D) :
Preferred stock, $.001 par value, 5,000,000 shares authorized;
1,955.5 Series BB and 2,423 Series B shares issued and
outstanding at March 31, 1997 and December 31, 1996, respectively
(liquidation value of $1,955,500 and $2,423,000, respectively)
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, 4,965,226 and
4,770,940 shares issued and outstanding at
March 31, 1997 and December 31, 1996 .................... 5,000 5,000
Capital in excess of par value.............................. 12,357,000 12,322,000
Retained earnings........................................... 995,000 883,000
---------- ----------
Total Stockholders' Equity........................... 13,357,000 13,210,000
---------- ----------
Total Liabilities and Stockholders' Equity........... $23,436,000 $23,016,000
=========== ===========
</TABLE>
page 2
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC. AND SUBSIDIARIES
Consolidated Statements of Income
- Unaudited -
Three Months Ended
March 31,
-------------------------
1997 1996
---------- ----------
Net revenue ............................... $ 6,001,000 $ 2,557,000
----------- -----------
Operating expenses:
Salaries and benefits ................... 3,143,000 1,071,000
Fleet Maintenance ....................... 388,000 177,000
Insurance ............................... 238,000 215,000
Rent .................................... 116,000 35,000
Depreciation and amortization ........... 258,000 64,000
----------- -----------
Total operating expenses .............. 4,143,000 1,562,000
----------- -----------
Gross profit .......................... 1,858,000 995,000
Selling, general and administrative ....... 1,536,000 677,000
----------- -----------
Income from operations .................... 322,000 318,000
Other income .............................. (12,000) 0
Interest income ........................... (21,000) (29,000)
Interest expense .......................... 146,000 79,000
----------- -----------
Income before provision for income taxes .. 209,000 268,000
Provision for income taxes ................ 97,000 110,000
----------- -----------
NET INCOME ............................ $ 112,000 $ 158,000
=========== ===========
Net income available to common shareholders $ 90,000 $ 158,000
=========== ===========
Net income per share ...................... $ .02 $ .05
=========== ===========
Weighted average number of common and
common equivalent shares outstanding
used in computing earnings per share .... 4,891,500 3,468,500
=========== ===========
page 3
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC, AND SUBSIDIARIES
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------
1997 1996
-------------- -----------
(Unaudited)
<S> <C> <C>
Cash flow from operating activities:
Net income ..................................................................... $ 112,000 $ 158,000
Adjustments to reconcile net income to cash (used in) provided by operating
activities:
Depreciation and amortization expense ........................................ 354,000 101,000
Imputed interest on note payable ............................................. 5,000 0
Changes in operating assets and liabilities:
Decrease (Increase) in accounts receivable-trade net ....................... (736,000) 177,000
Decrease (increase) in prepaid expenses
and other curent assets .................................................. 399,000 (512,000)
(Increase) in other assets ................................................. (3,000) (159,000)
Increase in accounts payable and accrued expenses .......................... 83,000 390,000
(Decrease) increase in deferred taxes payable .............................. (240,000) 108,000
----------- -----------
Net cash (used in) provided by operating activities ............................ (26,000) 263,000
----------- -----------
Cash used in investing activities:
Acquisition of equipment-net of disposals ...................................... (609,000) (180,000)
Decrease in short term investments ............................................. 144,000 6,000
----------- -----------
Net cash (used in) investing activities ........................................ (465,000) (174,000)
----------- -----------
Cash flow from financing activities:
Proceeds from bank borrowings .................................................. 540,000 200,000
Principal payments on debt ..................................................... (113,000) (115,000)
Principal payments on capital lease obligations ................................ (2,000) (11,000)
Net Proceeds from exercise of Employee Stock Options ........................... 35,000 0
Net Proceeds from exercise of Common Stock Warrants ............................ 0 284,000
----------- -----------
Net cash provided by financing activities ...................................... 460,000 358,000
----------- -----------
NET INCREASE (DECREASE) IN CASH ................................................ (31,000) 447,000
CASH - BEGINNING OF PERIOD ..................................................... 1,037,000 25,000
----------- -----------
CASH - END OF PERIOD ........................................................... $ 1,006,000 $ 472,000
=========== ===========
Supplementary disclosure of cash flow information:
Cash paid during the period:
Interest ..................................................................... $ 104,000 $ 53,000
=========== ===========
Taxes ........................................................................ $ 50,000 $ 15,000
=========== ===========
</TABLE>
page 4
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(Note A) - Organization and Basis of Presentation:
The accompanying financial statements include the accounts of Community
Medical Transport, Inc. (the "Company") and its five wholly owned operating
subsidiaries, Community Ambulette Service, Inc. ("Ambulette"), First Help
Ambulance and Ambulette, Inc. ("First Help"), Empire Ambulance and Ambulette
Inc. ("Empire"), Century Ambulance and Ambulette Inc. ("Century") and Elite
Ambulance and Medical Coach, Inc., ("Elite") (collectively the "Companies"). All
intercompany balances and transactions have been eliminated in consolidation.
The Company provides specialized transportation for the handicapped and
disabled, mentally retarded, elderly and chronically ill to and from day
treatment centers, day care programs, hospitals, nursing homes and other health
care facilities in the New York - New Jersey Metropolitan area. This service is
provided in ambulettes, which are specialized vans that contain wheelchair lifts
or ramps.
The Company also provides emergency and non-emergency ambulance
transportation of patients who require basic medical care or supervision during
transport to and from hospitals, nursing homes and other health care facilities
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, 1997 are not necessarily
indicative of the results that may be expected for the year ending December 31,
1997. For further information refer to the financial statements and footnotes
thereto included in the Company's Form 10-KSB.
(Note B) - Acquisitions
On May 21, 1996, the Company purchased from an ambulette provider in
Brooklyn, New York ("Jenco"), equipment and ambulettes for a cash payment of
$30,000 and a balance of $200,000 to be paid in twelve equal quarterly
installments commencing September 1996. The note is subject to reduction
depending upon certain factors, including revenues derived from former customers
of the provider.
On June 12, 1996, the Company completed the acquisition of certain
assets from A-1 Ambulance Service, Inc. ("A-1"), through it's wholly owned
subsidiary, Empire. The Company acquired equipment, ambulances, customer lists,
a covenant not to compete, and goodwill for a cash payment of $425,000 and a
balance of $325,000 to be paid in eight quarterly installments commencing
September 1996.
On August 15, 1996, the Company acquired certain assets from Hudvalco,
Inc. and Harvey H. McGeorge, Inc. (collectively "Hudvalco") and all of the
outstanding common stock of four entities related to Hudvalco through common
ownership, through it's wholly owned subsidiary, Century. The Company acquired
ambulance equipment, licenses to operate an ambulance business previously
conducted by Hudvalco, customer lists and goodwill. The total consideration for
the acquisition was $5,950,000 subject to certain adjustments of which
$3,000,000 was paid in cash, approximately $940,000 consisted of the assumption
of debt and $2,010,000 consisted of a ninety-day promissory note.
Page 5
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(Note B) - (continued)
Additionally, the Company will acquire all the common stock of Richards
Decker Operating Corp. ("RDO"), an entity also related to Hudvalco through
common ownership for $1,050,000. The Company operates RDO under an operating
agreement which entitles the Company to the revenues earned and incurs all costs
relating to the operations of RDO.
On August 22, 1996, a wholly owned subsidiary of the Company completed
the purchase from Elite Ambulance & Medical Coach, Inc. ("Elite") of ambulettes
and certain other assets, including accounts receivable and a license to operate
an ambulette service by the state of New Jersey. The assets were acquired
pursuant to an asset purchase agreement among the Company, Elite and its
shareholders. Elite operated an ambulette service from Orange, New Jersey
servicing Essex County, New Jersey and other nearby counties under the name
Elite . After the acquisition, the subsidiary changed its name to Elite
Ambulance & Medical Coach Inc. and is operating the acquired ambulette service
under the name Elite. The consideration for the acquisition was $760,000 of
which half was paid in cash at the closing and the balance pursuant to a one
year note. In connection with the acquisition, the Company (i) assumed certain
debts related to the assets, including bank indebtedness of approximately
$19,500, (ii) entered into a contract with affiliates of Elite to acquire the
real estate facility containing Elite's operating facility for approximately
$1,200,000 in cash and short term mortgage notes, and (iii) assumed a lease for
such facility until the closing of the real estate contracts of sale. The
Company terminated the agreement for the purchase of the property and has
entered into a long term lease for the facility. The Company has requested the
return of $360,000 paid as a down payment on the building. The Company is also
seeking to renegotiate the purchase price of the assets acquired based on what
it believes to be inaccuracies and misrepresentations.
In August 1996, a wholly owned subsidiary of the Company purchased from
an ambulette provider in New Jersey (First Invalid Coach Services, Inc.)
ambulettes, its customer list and goodwill for approximately $109,000. $59,000
was paid at the closing with an estimated amount of $50,000 to be paid in twelve
monthly payments based on a percentage of cash receipts generated from the
client base.
In connection with the above acquisitions, the Company incurred certain
costs associated with such acquisitions. These costs were deferred and recorded
as intangibles assets upon the acquisition. These costs were allocated among
customer lists and goodwill which are being amortized using the straight-line
method over the period of expected benefit from five to twenty-five years. The
licenses are being amortized over a forty year period. The covenants not to
compete are being amortized over the period of the covenants which is three
years. Intangible assets are evaluated periodically and adjusted if necessary,
if events and circumstances indicate that the carrying amount is impaired.
Unaudited proforma summary of consolidated operations for the three
months ended March 31, 1996 assuming the above acquisitions had taken place on
January 1, 1996 respectively is as follows:
Three months
Ended 3/31/96
-------------
Revenue..................................... $5,648,000
Net Income.................................. $ 249.000
Net Income per common share................. $ .06
Page 6
<PAGE>
COMMUNITY MEDICAL TRANSPORT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(Note C) - Net Income Per Common Share
Net Income per common share is based on reported net income, decreased
for dividends related to the Series A and Series B Preferred Stock outstanding
during the period. The resulting amount is presented below as income available
to common stockholders.
Such income applicable to common stockholders in each period presented
is divided by the weighted average number of outstanding common shares, as
shares issuable under warrants, options, and preferred stock would have an
anti-dilutive effect.
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------------------------------------------
1997 1996
---- ----
Per Per
Amount Share Amount Share
------ ----- ------ -----
<S> <C> <C> <C> <C>
Reported net income ........... $ 112,000 $ 0.02 $ 158,000 $ 0.05
Adjustment for cumulative
preferred stock dividends ... (22,000) (0.00) 0 0.00
----------- ----------- ----------- -----------
Net income applicable to common
common stockholders and
net income per share ........ $ 90,000 $ 0.02 $ 158,000 $ 0.05
=========== =========== =========== ===========
Weighted average common
shares and common equivalent
shares outstanding .......... 4,891,500 3,468,500
=========== ============
</TABLE>
Primary and fully diluted income per share amounts do not differ.
(Note D) - Stockholders' Equity:
On July 31, 1996 and August 7, 1996, the Company completed an equity
financing from foreign investors for 3,437.5 shares of Series A convertible
preferred stock with a liquidation value of $3,437,500 and 5,000 shares of
Series B convertible preferred stock with a liquidation value of $5,000,000,
respectively, for net proceeds of approximately $5,918,000. The preferred
stockholders of each series were entitled to a 4% cumulative dividend on the
stated liquidation value, and each share was convertible into shares of common
stock at the lower of the market value for the five trading days prior to
conversion or $7.00 per share, and would have automatically converted on July
31, 1998. All fees and commissions associated with such offerings are recorded
against paid in capital. All of the Series A preferred stock and 3,044.5 shares
of the Series B preferred stock have been converted into common stock as of
December 31, 1996 and March 31, 1997, respectively. In connection with such
foreign financing, warrants to purchase up to 135,000 shares of common stock at
$5.00 per share have been issued to a designee of a consultant.
In March 1997, the Board of Directors authorized the designation of
7,500 shares of preferred stock of the Company to be Series BB convertible
preferred stock. The remaining 1,955.5 shares of Series B preferred stock were
exchanged for 1,955.5 shares of Series BB preferred stock and 150,000 common
stock purchase warrants. Series BB preferred stock has the same rights and
preferences as Series B preferred stock except as follows: the Series BB
preferred stock is convertible on a cumulative basis into approximately 61,460
shares of common stock each month during the eight months commencing on April 1,
1997 and approximately 67,050 shares of common stock at any time after December
1, 1997. All outstanding shares will automatically convert on July 31, 1998. The
conversion is based upon the liquidation value of the Series BB preferred stock
and is convertible at $3.50 per share. The liquidation value of the Series BB
preferred stock was $1,955,500 at March 31, 1997.
The 150,000 warrants are exercisable at an initial exercise price of
$4.00 per share, provided, however, that the purchase price may be adjusted
under certain circumstances. The expiration date of the common stock purchase
warrants is November 18, 2000.
At December 31, 1996, there were 5,000 shares designated as Series A
preferred stock and 7,500 shares designated as Series B preferred stock. On
March 31, 1997, there were 5,000 shares designated as Series A preferred stock,
7,500 shares designated as Series B preferred stock, and 7,500 shares designated
as Series BB preferred stock. On April 16, 1997, the Company filed a certificate
eliminating reference to the 7,500 shares of Series B preferred stock from the
certificate of incorporation of the Company.
Page 7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Three Months Ended March 31, 1997 Compared to Three Months Ended March 31, 1996
Overview
For all periods presented, the following financial information includes
the accounts of First Help and Ambulette, wholly owned subsidiaries of the
Company.
The Company completed five acquisitions by wholly owned subsidiaries of
the Company between May and August 1996. Each acquisition was accounted for by
purchase accounting. Therefore the total revenues and expenses for each of these
acquisitions is included only for the period after acquisition by the Company.
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 and other adjustments.
Results of Operations
The Company's total revenue amounted to $6,001,000 for the three months
ended March 31, 1997, as compared with $2,557,000 for the three months ended
March 31, 1996, an increase of $3,444,000 or 134.7%. The increase is due
substantially to the additional revenues resulting from the acquisitions, and to
a lesser extent, increased volume generated from additional customer base of its
business prior to the acquisitions.
Operating expenses increased by $2,581,000 or 165.2% to $4,143,000 for
the three months ended March 31, 1997 from $1,562,000 for the three months ended
March 31, 1996. This percentage increase was greater than percentage increase in
volume due to the historically lower margins of the acquired companies as well
as disproportionate increases in depreciation and amortization. In addition, the
Company had increased personnel costs during the first quarter of 1997 as the
business mix has shifted toward ambulance services from ambulette services.
Gross profit increased by $863,000 or 86.7% to $1,858,000 for the three
months ended March 31, 1997 from $995,000 for the three months ended March 31,
1996. Gross profit as a percentage of revenues decreased to 31.0% for the three
months ended March 31, 1997 from 38.9 % for the three months ended March 31,
1996. This percentage decrease for the three month period is primarily
attributed to the reasons stated above under operating expenses.
Selling, general and administrative expenses increased by $859,000 or
126.9% to $1,536,000 for the three months ended March 31, 1997, from $677,000
for the three months ended March 31, 1996. Such expenses as a percentage of
revenues decreased by 0.9% to 25.6% for the three months ended March 31, 1997
from 26.5% for the corresponding period in 1996, primarily as a result of the
increased volumes and the elimination of certain redundant expenses associated
with the acquisitions.
Other income increased to $12,000 for the three months ended March 31,
1997 as compared to zero for the same period in the prior year. This was due to
a management fee for the operation of an ambulance company.
Interest expense increased by $67,000 or 84.8% to $146,000 for the
three months ended March 31,1997 compared to $79,000 for the three months ended
March 31, 1996. This increase is primarily due to the additional borrowing and
debt incurred in connection with the acquisitions completed in 1996.
Page 8
<PAGE>
Interest income decreased by $8,000 or 27.6% to $21,000 for the three
months ended March 31, 1997 compared to $29,000 for the three months ended March
31, 1996, due to significant expenditures in connection with acquisitions which
reduced available cash.
The Company's income taxes amounted to $97,000 for the three months
ended March 31, 1997 representing an effective rate of 46.4%, compared with
$110,000 for the three months ended March 31, 1996 representing an effective
rate of 41.0%. The increase in the effective income tax rate results primarily
from an automatic change in accounting method (for income tax purposes only) as
required by Internal Revenue Code Section 448.
The Company's net income amounted to $112,000 or $.02 per share for the
three months ended March 31, 1997, as compared to $158,000 or $.05 per share for
the three months ended March 31, 1996. This decrease in net income and earnings
per share is attributable to both the additional expenses incurred in connection
with the acquisitions, as well as the additional stock issued as a result of the
private placement of common stock and exercise and conversion of warrants and
convertible securities issued.
The Company is currently considering several additional acquisitions in
the near future. Although the completion of any of these acquisitions will
increase the revenues and expenses of the Company, there can be no assurance
that future net income will be positively impacted.
In January 1997, the New York State Medicaid reimbursement rates were
changed. The base rates were reduced, while certain other reimbursement rates
were added or increased. While certain segments may become more profitable,
other segments may become less profitable. Therefore, the Company has been
evaluating its current business segments by geographic location to evaluate the
impact of such changes and the effects on profitability.
The Company has begun its cost-cutting measures and has realized
reductions in certain costs, particularly insurance. However, other cost
reductions will take longer to realize as the Company continues the
consolidation of its operations.
Liquidity and Capital Resources
Cash used in operating activities amounted to $26,000 for the three
months ended March 31, 1997 as compared to cash provided by operating activities
of $263,000 for the three months ended March 31, 1996. The increase in cash used
in operating activities was largely the result of an increase in accounts
receivable due mainly to increased volume from the acquisitions, as well as a
change in the payment schedule of governmental agencies. This was offset by an
increase in accounts payable and a reduction in prepaid expenses.
Cash used in investing activities amounted to $465,000 for the three
months ended March 31, 1997 as compared to $174,000 for the same period in 1996.
The increase in cash used in investing activities was largely the result of
capital expenditures associated with the purchase of vehicles and equipment.
This was offset by a decrease in short term investments.
Cash provided by financing activities amounted to $460,000 for the
three months ended March 31, 1997 as compared to $358,000 for the same period in
1996. The increase in cash provided by financing activities was largely the
result of proceeds from bank borrowings. This was offset by the partial exercise
of Common Stock Warrants exercised in the prior period.
In December 1996, the Company entered into a $10,000,000 credit
facility to replace its previously existing $3,200,000 credit facility for
working capital and capital expenditures. At March 31, 1997, there was
$6,040,000 outstanding under this facility. A portion of this facility consists
of a revolving credit arrangement which may only be drawn down if the Company
has sufficient qualified accounts receivable. The Company, in the past, and may
in the future, be temporarily unable to draw down desired amounts because of
slow payment by reimbursement agents and as a result of delays in collection
from recently acquired operations.
Page 9
<PAGE>
Working capital at March 31, 1997 amounted to $5,247,000 as compared to
$3,641,000 at March 31, 1996. The Company currently believes that internally
generated funds, and bank loans will provide sufficient liquidity and enable it
to meet its currently foreseeable working capital requirements for existing
operations.
The Company is actively considering a number of acquisitions as of
May 8, 1997, which do not require significant cash payments. Additional
financings, however, may be required in the future in connection with the
Company's acquisition program.
Inflation
The Company believes that the relatively moderate rates of inflation in
recent years have not had a significant impact on its net revenues or its
profitability.
Page 10
<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 12th day of May, 1997.
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
<PAGE>
EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K - Not Applicable
Page 11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,006,000
<SECURITIES> 1,589,000
<RECEIVABLES> 6,355,000
<ALLOWANCES> 548,000
<INVENTORY> 0
<CURRENT-ASSETS> 9,679,000
<PP&E> 4,988,000
<DEPRECIATION> 1,511,000
<TOTAL-ASSETS> 23,436,000
<CURRENT-LIABILITIES> 4,432,000
<BONDS> 0
0
0
<COMMON> 5,000
<OTHER-SE> 12,357,000
<TOTAL-LIABILITY-AND-EQUITY> 23,436,000
<SALES> 0
<TOTAL-REVENUES> 6,001,000
<CGS> 0
<TOTAL-COSTS> 4,143,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 125,000
<INCOME-PRETAX> 209,000
<INCOME-TAX> 97,000
<INCOME-CONTINUING> 112,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 112,000
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
