<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(D) OF
-----
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
-----------------
x TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
-----
SECURITIES EXCHANGE ACT OF 1934
For the transition period from (Inception) April 1, 1997 to December 31,1997
------------- ----------------
Commission file number 0-24640
-------
Community Medical Transport 401(k) Retirement Savings Plan
----------------------------------------------------------
(Full title of the plan)
Community Medical Transport, Inc.
4 Gannett Drive, White Plains, New York 10604
---------------------------------------------
(Name of issuer of the securities held pursuant to
the plan and the address of its principal
executive office)
Registrant's telephone number, including area code (914) 697-9233
Notices and communications from the Securities and Exchange
Commission relative to this report should be forwarded to:
Donald J. Panos
Chief Financial Officer
Community Medical Transport Inc.
4 Gannett Drive
White Plains, NY 10604
<PAGE>
COMMUNITY MEDICAL TRANSPORT 401 (k) RETIREMENT SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS
(a) FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
<TABLE>
<CAPTION>
<S> <C>
Independent Auditor's Report............................................................ 3
Statement of Net Assets Available for Benefits, as of
December 31, 1997.............................................................. 4
Statement of Net Assets Available for Benefits with Fund Information
As of December 31, 1997........................................................ 5
Statement of Changes in Net Assets Available for Benefits
With Fund Information for the nine months ended
December 31, 1997 (from inception April 1, 1997)............................... 6
Notes to Financial Statements........................................................... 7-10
Supplemental Schedules:
Line 27a - Schedule of Assets held for Investment
Purposes as of December 31, 1997 .............................................. 11
Line 27d - Schedule of Reportable Transactions for the nine months
ended December 31, 1997 (from inception April 1, 1997)......................... 12
</TABLE>
Supplemental schedules not listed above are omitted due to the absence of the
conditions under which they are required.
Page 2
<PAGE>
Independent Auditor's Report
----------------------------
Community Medical Transport
401(k) Retirement Savings Plan
We have audited the accompanying statements of net assets available for benefits
of Community Medical Transport, 401 (k) Retirement Savings Plan (The "Plan") as
of December 31, 1997 and the related statement of changes in net assets
available for benefits for the nine months then ended (from inception April 1,
1997). These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the Net Assets Available for Benefits of the Plan as of
December 31, 1997, and the Changes in Net Assets Available for Benefits for the
nine months then ended (from inception April 1, 1997) in conformity with
generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of (1) assets
held for investment purposes as of December 31, 1997 and (2) reportable
transactions for the nine months ended December 31, 1997(from inception April 1,
1997), are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's rules an Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in our audit of
the basic 1997 financial statements and, in our opinion, are fairly stated in
all material respects when considered in relation to the basic financial
statements taken as a whole.
/s/ Puglisi, Midler & Co., LLP
- ------------------------------
Puglisi, Midler & Co., LLP
Hartsdale, New York
July 10, 1998
Page 3
<PAGE>
COMMUNITY MEDICAL TRANSPORT
401 (k) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments at Fair Value (Note B):
Shares of registered investment companies:
Merrill Lynch Basic Value Fund......................................... $ 13,267
Merrill Lynch Capital Fund ............................................ 14,454
Merrill Lynch Global Allocation Fund .................................. 18,230
Aim Equity Constellation Fund ......................................... 16,569
Davis New York Venture Fund............................................ 44,972
--------
107,492
Merrill Lynch Retirement Preservation Trust ................................... 27,886
Community Medical Transport, Inc. Company Stock .............................. 7,085
--------
Total Investments............................................................... 142,463
-------
Receivables
Employer's Contributions .............................................. 12,495
Participants' Contributions............................................ 15,298
--------
Total Receivables ..................................................... 27,793
--------
Total Assets........................................................... 170,256
-------
LIABILITIES
Refund to Highly Compensated Employee.................................. 1,624
--------
Total Liabilities ..................................................... 1,624
--------
Net Assets Available for Benefits .............................................. $168,632
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 4
<PAGE>
Community Medical Transport 401(k) Retirement Savings Plan
Statement of Net Assets Available for Benefits with Fund Information
As of December 31, 1997
<TABLE>
<CAPTION>
Participant - Directed
----------------------------------------------------------------
ML
CMTI Retirement ML Basic ML ML Global
Company Preservation Value Capital Allocation
Stock Trust Fund Fund Fund
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value (Note B):
CMTI Company Stock $ 7,085 $ -- $ -- $ -- $ --
ML Retirement Preservation Trust -- 27,886 -- -- --
Shares of Registered Investment Companies:
ML Basic Value Fund -- -- 13,267 -- --
ML Capital Fund -- -- -- 14,454 --
ML Global Allocation Fund -- -- -- -- 18,230
Equity Constellation Fund -- -- -- -- --
Davis NY Venture Fund -- -- -- -- --
------- ------- ------- ------- -------
Total Investments 7,085 27,886 13,267 14,454 18,230
------- ------- ------- ------- -------
Receivables
Employer's contributions -- -- -- -- --
Participants' contributions 1,380 3,561 1,425 1,466 1,553
------- ------- ------- ------- -------
Total Receivables 1,380 3,561 1,425 1,466 1,553
------- ------- ------- ------- -------
Total Assets 8,465 31,447 14,692 15,920 19,783
------- ------- ------- ------- -------
LIABILITIES
Refund to Highly Compensated Employee 154 -- -- -- 723
------- ------- ------- ------- -------
Total Liabilities 154 -- -- -- 723
------- ------- ------- ------- -------
Net Assets Available for Benefits $ 8,311 $31,447 $14,692 $15,920 $19,060
======= ======= ======= ======= =======
<CAPTION>
Non-Participant
Participant - Directed Directed
---------------------------- ---------------
AIM Equity Davis NY CMTI
Constellation Venture Company
Fund Fund Stock Total
-------- -------- -------- --------
<S> <C> <C> <C> <C>
ASSETS
Investments, at fair value (Note B):
CMTI Company Stock $ -- $ -- $ -- $ 7,085
ML Retirement Preservation Trust -- -- -- 27,886
Shares of Registered Investment Companies:
ML Basic Value Fund -- -- -- 13,267
ML Capital Fund -- -- -- 14,454
ML Global Allocation Fund -- -- -- 18,230
Equity Constellation Fund 16,569 -- -- 16,569
Davis NY Venture Fund -- 44,972 -- 44,972
-------- -------- -------- --------
Total Investments 16,569 44,972 -- 142,463
-------- -------- -------- --------
Receivables
Employer's contributions -- -- 12,495 12,495
Participants' contributions 1,746 4,167 -- 15,298
-------- -------- -------- --------
Total Receivables 1,746 4,167 12,495 27,793
-------- -------- -------- --------
Total Assets 18,315 49,139 12,495 170,256
-------- -------- -------- --------
LIABILITIES
Refund to Highly Compensated Employee -- 747 -- 1,624
-------- -------- -------- --------
Total Liabilities -- 747 -- 1,624
-------- -------- -------- --------
Net Assets Available for Benefits $ 18,315 $ 48,392 12,495 $168,632
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 5
<PAGE>
Community Medical Transport 401(k) Retirement Savings Plan
Statement of Changes in Net Assets Available for Benefits with Fund Information
For the nine months ended December 31, 1997 (From inception April 1, 1997)
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------------------
ML
CMTI Retirement ML Basic ML ML Global
Company Preservation Value Capital Allocation
Stock Trust Fund Fund Fund
---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Additions:
Additions to net assets attributed to Investment Income:
Dividends -- $ 423 $ 627 $ 617 $ 1,996
-------- -------- -------- -------- --------
-- 423 627 617 1,996
Contributions:
Participants' 15,800 31,979 14,162 15,380 19,861
Employer's -- -- -- -- --
-------- -------- -------- -------- --------
15,800 31,979 14,162 15,380 19,861
-------- -------- -------- -------- --------
Total additions 15,800 32,402 14,789 15,997 21,857
-------- -------- -------- -------- --------
Deductions
Deductions from net assets attributed to:
Withdrawal payments to terminated employees -- (222) -- (113) (109)
Refund to Highly Compensated Employee (154) -- -- -- (723)
Net depreciation in fair value of investments (7,381) -- (97) (42) (1,965)
-------- -------- -------- -------- --------
Total deductions (7,535) (222) (97) (155) (2,797)
-------- -------- -------- -------- --------
Interfund Transfers 46 (733) -- 78 --
-------- -------- -------- -------- --------
Net Increase (decrease) 8,311 31,447 14,692 15,920 19,060
Net assets available for benefits:
Beginning of year-inception -- -- -- -- --
-------- -------- -------- -------- --------
End of year $ 8,311 $ 31,447 $ 14,692 $ 15,920 $ 19,060
======== ======== ======== ======== ========
<CAPTION>
Non-Participant
Participant Directed Directed
----------------------------- --------------
AIM Equity Davis NY CMTI
Constellation Venture Company
Fund Fund Stock Total
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Additions:
Additions to net assets attributed to Investment Income:
Dividends $ 1,061 $ 1,845 -- $ 6,569
--------- --------- --------- ---------
1,061 1,845 -- 6,569
Contributions:
Participants' 18,444 46,947 -- 162,573
Employer's -- -- 12,495 12,495
--------- --------- --------- ---------
18,444 46,947 12,495 175,068
--------- --------- --------- ---------
Total additions 19,505 48,792 12,495 181,637
--------- --------- --------- ---------
Deductions
Deductions from net assets attributed to:
Withdrawal payments to terminated employees -- (114) -- (558)
Refund to Highly Compensated Employee -- (747) -- (1,624)
Net depreciation in fair value of investments (1,538) 200 -- (10,823)
--------- --------- --------- ---------
Total deductions (1,538) (661) -- (13,005)
--------- --------- --------- ---------
Interfund Transfers 348 261 -- 0
--------- --------- --------- ---------
Net Increase (decrease) 18,315 48,392 12,495 168,632
Net assets available for benefits:
Beginning of year-inception -- -- -- 0
--------- --------- --------- ---------
End of year $ 18,315 $ 48,392 $ 12,495 $ 168,632
========= ========= ========= =========
</TABLE>
The accompanying note are an integral part of these financial statements.
Page 6
<PAGE>
COMMUNITY MEDICAL TRANSPORT
401 (k) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
A. Description of Plan
The following description of Community Medical Transport 401 (k) Retirement
Savings Plan (The "Plan") provides only general information. Participants should
refer to the Plan agreement for a more complete description of the Plan's
provisions.
1. General. The plan is a defined contribution plan covering all
full-time employees of the Company who have one year of
service (at least 1000 hours) and are age twenty-one or older
and who are not covered by a collective bargaining agreement.
It is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
2. Contributions. Each year, participants may contribute up to
15% of pretax annual compensation, as defined in the Plan.
Participants may also contribute amounts representing
distributions from other qualified defined benefit or
contribution plans. The Company's contribution is
discretionary, subject to a maximum amount of 6% of each
participant's compensation, and may vary from year to year at
the option of the board of directors. For the Plan period
ended December 31, 1997, the Company contributed 10% of the
first 5% of the base compensation that a participant
contributed to the Plan. All employer contributions are
invested in Community Medical Transport, Inc. common stock.
Contributions are subject to certain limitations.
3. Participant Accounts. Each participant's account is credited
with the participant's contribution and allocations of (a) the
Company's contribution and, (b) Plan earnings. Allocations are
based on participant's earnings or account balances, as
defined. Forfeited balances of terminated participants'
non-vested accounts are used to reduce future company
contributions. The benefit to which a participant is entitled
to is the benefit that can be provided from the participant's
vested account.
4. Vesting. Participants are immediately vested in their
contributions plus actual earnings thereon. Vesting in the
Company's discretionary contribution portion of their accounts
plus actual earnings thereon is based on years of continuous
service. A participant is 100 percent vested after six years
of credited service.
Page 7
<PAGE>
Investment Options. Upon enrollment in the Plan, a participant may direct
employee contributions in 10% increments into any of seven investment options. A
description of each investment option offered under the plan as follows:
Merrill Lynch Retirement Preservation Trust - funds are
invested primarily in a broadly diversified portfolio of
guaranteed investments contracts and in obligations of U.S.
government and government - agency securities.
Merrill Lynch Capital Fund - funds are invested in high
quality stocks, corporate bonds and cash equivalents.
Merrill Lynch Global Allocation Fund - funds are invested in
U.S. and foreign equity, debt and money market securities.
Davis NY Venture Fund - funds are invested in shares of a
registered investment company that invests primarily in common
stock.
Aim Constellation Fund - funds are invested in shares of a
registered investment company that invests primarily in common
stocks.
Merrill Lynch Basic Value Fund - funds are invested in
primarily common stocks.
Community Medical Transport, Inc. company stock - funds are
invested in the common stock of Community Medical Transport,
Inc.
B. Summary of Accounting Policies
Basis of Accounting
The financial statements of the Plan are prepared under the accrual
method of accounting.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of assets,
liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
Page 8
<PAGE>
Investment Valuation and Income Recognition
The Plan's investments are stated at fair market value. Shares of
registered investment companies are valued at quoted market prices
which represent the net asset value of shares held by the Plan at
year-end. The Company stock is valued at its quoted market price.
Participant notes receivable are valued at cost which approximates fair
value.
Purchases and Sales of Securities are recorded on a trade date basis.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
Payment of Benefits
Benefits are recorded when paid.
C. Related Party Transactions
Certain Plan investments are shares of mutual funds managed by Merrill
Lynch. Merrill Lynch is the trustee as defined by the Plan and,
therefore, these transactions qualify as party-in-interest. Certain
costs of plan administration are paid by Community Medical Transport,
Inc.
D. Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions or to terminate
the Plan at any time subject to the provisions of ERISA. In the event
of Plan termination, participants will become 100 percent vested in
their accounts.
E. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31, 1997
-----------------
<S> <C>
Net assets available for benefits per the
financial statements ................................................ $168,632
Employers' Contribution ........................................... (12,495)
Participants' Contribution ........................................ (15,298)
Refund to Highly Compensated Employee ............................. 1,624
--------
Net assets available for benefits per Form 5500 ..................... $142,463
========
</TABLE>
Page 9
<PAGE>
The following is a reconciliation of benefits paid to participants per
the financial statements to Form 5500:
<TABLE>
<CAPTION>
Nine Months Ended
December 31,1997
----------------
<S> <C>
Withdrawal Payments paid to participants per the
Financial statements................................................. $558
----
Benefits paid to participants per the Form 5500...................... $558
====
</TABLE>
F Tax Status
The Internal Revenue Service has determined and informed the Company by
a letter dated May 29, 1997 that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code ("IRC"). The Plan's fiduciary and tax council believe that the
Plan is designed and currently being operated in compliance with the
applicable requirements of the IRC, and therefore no provision for
income taxes have been included in the Plan's financial statements.
G. Participant Unit Data
For the Nine Months ended December 31, 1997 (from inception April 1, 1997)
<TABLE>
<CAPTION>
Plan Number Net Assets
of units Value per
Description of Investments Outstanding Unit
-------------------------- ----------- ----
<S> <C> <C>
Community Medical Transport Inc. Common Stock.......................... 5,817.32 $ 1.22
Merrill Lynch Retirement Preservation Trust............................ 27,886.05 $ 1.00
Merrill Lynch Basic Value Fund Class D ................................ 358.36 $ 37.02
Merrill Lynch Capital Fund Class D .................................... 419.43 $ 34.46
Merrill Lynch Global Allocation Fund Class D .......................... 1,290.16 $ 14.13
Aim Equity Constellation Fund ......................................... 628.08 $ 26.38
Davis New York Venture Fund Inc. ...................................... 2,013.98 $ 22.33
</TABLE>
Page 10
<PAGE>
Supplemental Schedule 1
COMMUNITY MEDICAL TRANSPORT 401 (k) RETIREMENT SAVINGS PLAN
Line 27-A SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
Current
Description of Investment Value Cost
- ------------------------- ----- ----
<S> <C> <C>
Community Medical Transport Inc. Common Stock.......................... $ 7,085 $ 14,466
------- ------
Merrill Lynch Retirement Preservation Trust............................ 27,886 27,886
------ ------
Merrill Lynch Basic Value Fund Class D ................................ 13,267 13,364
Merrill Lynch Capital Fund Class D .................................... 14,454 14,496
Merrill Lynch Global Allocation Fund Class D .......................... 18,230 20,183
AIM Equity Constellation Fund ......................................... 16,569 18,107
Davis New York Venture Fund Inc. ...................................... 44,972 44,771
------ ------
Total Investment in Registered Investment Companies............... 107,492 110,921
------- -------
Total Investments................................................ $142,463 $153,273
======== ========
</TABLE>
Page 11
<PAGE>
Supplemental Schedule 2
COMMUNITY MEDICAL TRANSPORT 401 (k) RETIREMENT SAVINGS PLAN
Line 27-d SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1997
(FROM INCEPTION APRIL 1, 1997)
<TABLE>
<CAPTION>
<S> <C> <C>
Identity of Purchase
Party/Broker Description of Assets Price
- ------------ --------------------- -----
SERIES OF REPORTABLE TRANSACTIONS
---------------------------------
Merrill Lynch Davis New York Venture Fund
(7 Purchases) $ 46,945
.
Merrill Lynch Community Medical Transport Inc.
Common Stock
(7 Purchases) 15,800
Merrill Lynch Aim Equity Constellation Fund
(7 Purchases) 18,442
Merrill Lynch Merrill Lynch Capital Fund Class D
(7 Purchases) 15,378
Merrill Lynch Merrill Lynch Global Allocation Fund Class D
(7 Purchases) 19,858
Merrill Lynch Merrill Lynch Retirement Preservation Trust
(7 Purchases) 31,977
Merrill Lynch Merrill Lynch Basic Value Fund Class D
(7 Purchases) 14,160
--------
Total $162,560
SINGLE REPORTABLE TRANSACTIONS
------------------------------
None
</TABLE>
Page 12
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Board of Directors of Community Medical Transport Inc. has duly caused this
annual report to be signed on its behalf by the undersigned, thereunto duly
authorized on the 14th day of July 1998.
Community Medical Transport, 401(k) Retirement Savings Plan
-----------------------------------------------------------
(Name of Plan)
/s/ Dean L. Sloane
------------------
Dean L. Sloane
President and Chief Executive Officer
/s/ Donald J. Panos
-------------------
Donald J. Panos
Chief Financial Officer, Principal
Accounting Officer
