SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
COMMISSION FILE NUMBER 0-26168
CAREADVANTAGE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 52-1849794
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
485-C Route 1 South, Iselin, New Jersey 08830
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (732) 602-7000
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 twelve 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 ___
82,849,050
Number of shares of Common Stock outstanding as of May 12, 2000
Transitional Small Business Disclosure Format
Yes ___ No _X_
<PAGE>
CareAdvantage, Inc. and Subsidiaries
Form 10-QSB
For the three months ended March 31, 2000
I N D E X
Part I - Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
March 31, 2000 (Unaudited) and December 31, 1999 (Audited)............. 2
Condensed Consolidated Statements of Operations -
Three months ended March 31, 2000 (Unaudited) and
April 30, 1999 (Unaudited)............................................ 3
Condensed Consolidated Statements of Cash Flows -
Three months ended March 31, 2000 (Unaudited) and
April 30, 1999 (Unaudited).......................................... 4
Notes to Condensed Consolidated Financial Statements...................... 5
(Unaudited)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations................. 8
Item 3. Quantitative and Qualitative Disclosures about Market Risk.... 11
Part II - Other Information
Item 1. Legal Proceedings............................................. 11
Item 2. Changes in Securities......................................... 11
Item 3. Defaults Upon Senior Securities............................... 11
Item 4. Submission of Matters to a Vote of Security Holders........... 11
Item 5. Other Information ............................................ 11
Item 6. Exhibits and Reports on Form 8-K.............................. 11
Signature................................................................... 12
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
<TABLE>
<CAPTION>
CAREADVANTAGE, INC
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
ASSETS 2000 1999
Unaudited Audited
--------- -------
<S> <C> <C>
Current assets:
Cash and cash equivalents $1,471,000 $1,615,000
Accounts receivable for services:
Stockholder 1,156,000 1,135,000
Other 528,000 173,000
Other current assets 308,000 220,000
------- -------
Total current assets 3,463,000 3,143,000
Property and equipment, at cost less accumulated depreciation 716,000 845,000
Intangible assets 1,214,000 1,283,000
Other assets 102,000 102,000
------- -------
Total Assets $ 5,495,000 $ 5,373,000
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 225,000 313,000
Due to stockholder 692,000 393,000
Due to customer 839,000 902,000
Accrued salaries and employee benefits 931,000 841,000
Accrued expenses and other current liabilities 301,000 332,000
Deferred revenue, current 43,000 98,000
------ ----------
Total current liabilities 3,031,000 2,879,000
Due to stockholder, less current portion 0 300,000
Total Liabilities 3,031,000 3,179,000
--------- ---------
Stockholders' equity (capital deficiency):
Preferred stock-par value $.10 per share;
authorized 10,000,000 shares; none issued
Common stock-par value $.001 per share;
authorized 103,600,000 shares; issued
and outstanding 82,849,050 and 82,189,883 83,000 82,000
Additional capital 22,094,000 22,062,000
Accumulated deficit (19,713,000) (19,950,000)
------------ -------------
Total Stockholders' Equity 2,464,000 2,194,000
--------- -----------
Total Liabilities and Stockholders' Equity $ 5,495,000 $ 5,373,000
=========== =============
</TABLE>
The accompanying notes are an integral part of these statements.
2
<PAGE>
CAREADVANTAGE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31, April 30,
2000 1999
---- ----
Net revenues $4,550,000 $3,955,000
Costs of services 2,239,000 2,203,000
---------- ----------
Gross margin 2,311,000 1,752,000
--------- ---------
Operating expenses:
Selling, general and administration 1,909,000 2,334,000
Depreciation and amortization 178,000 216,000
------- -------
Total operating expenses 2,087,000 2,550,000
--------- ---------
Operating income/(loss) 224,000 (798,000)
Net interest income/(expense) 14,000 7,000
------ -----
Net income/(loss) 238,000 (791,000)
======= =========
Net income/(loss)
per share of common stock-basic and diluted $.00 ($.01)
==== ======
Weighted average number
of common shares outstanding -
Basic 82,755,000 82,190,000
========== ==========
Diluted 93,344,000 82,190,000
========== ==========
3
<PAGE>
<TABLE>
<CAPTION>
CAREADVANTAGE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31, April 30,
2000 1999
---- -----
<S> <C> <C>
Cash flows from operating activities:
Net profit/(loss) $ 238,000 $ (791,000)
Adjustments to reconcile net profit/(loss)
to net cash (used by)/provided from
operating activities:
Depreciation and amortization 222,000 342,000
Compensation due to option issuance 13,000 14,000
Change in assets and liabilities:
Due to/from customers/stockholders (376,000) 228,000
Other assets (88,000) 46,000
Accounts payable (89,000) 257,000
Accrued expenses and other liabilities (16,000) 371,000
Deferred revenue (43,000) (43,000)
--------- --------
Net cash (used by) /provided from
operating activities (139,000) 424,000
--------- -------
Cash flows from investing activities:
Capital expenditures (24,000) (163,000)
-------- ---------
Net cash (used by) investing
activities (24,000) (163,000)
-------- ----------
Cash flows from financing activities:
Proceeds from Issuance of Common Stock 19,000 0
Principal payments to stockholder 0 (119,000)
Principal payments under long-term debt 0 (159,000)
- ---------
Net cash (used by) financing
Activities 19,000 (278,000)
------- ---------
Net (decrease)/increase in cash (144,000) (17,000)
Cash - beginning of fiscal year 1,615,000 2,924,000
--------- ---------
Cash - end of period $1,471,000 $2,907,000
========== ==========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
CAREADVANTAGE, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note A--Basis of preparation:
Fiscal Year Change:
- -------------------
On June 8, 1999, CareAdvantage, Inc. ("CAI" or the "Company") changed its fiscal
year from one ending October 31 to a calendar year ending December 31. The
Company has not recast data for the comparative periods as such recasting is not
practicable. Additionally, the Company does not experience seasonality in its
results of operations and cash flows and such a restatement is not cost
justified. The Company has prepared its financial statements for the calendar
quarter ended March 31, 2000 compared to the fiscal quarter ended April 30,
1999. The Company believes such a comparison to the period ended April 30, 1999
provides a reliable basis for comparing changes in its results of operations and
cash flows for the period ended March 31, 2000. The consolidated financial
statements have been prepared by the Company and have not been audited by the
Company's independent auditors. The accompanying financial statements include
all adjustments (which include only normal recurring adjustments) which in the
opinion of management are necessary to present fairly the financial position,
results of operations and cash flows at March 31, 2000 and for all periods
presented. Certain information and note disclosures required to be included in
the financial statements prepared in accordance with generally accepted
accounting principles have been omitted. These consolidated financial statements
should be read in conjunction with the consolidated financial statements and
notes thereto included with the Company's December 31, 1999 Annual Report on
Form 10-KSB. The results of operations for the period ended March 31, 2000 are
not necessarily indicative of operating results to be expected for the full
year.
Note B--Per share data: Net income per share has been computed based on
the weighted average number of shares outstanding during the periods. Common
stock equivalents have not been included in 1999 as they are not dilutive.
Note C--Contingencies: Potential uninsured exposure to litigation:
(a) Robert T. Caruso v. John J. Petillo, Vincent M. Achillare, Lawrence A.
Whipple, and Horizon Blue Cross Blue Shield of New Jersey, Inc. et al.,
which was filed in Superior Court of New Jersey on August 12, 1998. Messrs.
Petillo, Achillare and Whipple were officers of the Company and may have
claims for indemnification for expenses and for any judgments against them
in this case. Mr. Caruso was a consultant to the Company. The complaint
alleges breach of contract, fraud, conspiracy, promissory estoppel and
negligent misrepresentation in connection with, among other things, the
termination of Mr. Caruso's consulting arrangement with the Company. The
Plaintiff seeks treble damages for unspecified amount and claims actual
damages in the approximate amount of $1.8-2.0 million. The Company received
notice from two of its insurance carriers denying coverage on this matter,
but the Company plans to vigorously contest these coverage decisions. The
Company received a written claim for indemnification from defendants
Petillo and Achillare and, subject to their having acted in good faith, the
Company has agreed to indemnify them and defendant Whipple and to pay their
reasonable defense costs. The parties to this litigation are currently
taking discovery. Until discovery has been completed, the Company has
insufficient information regarding its potential exposure in this matter.
5
<PAGE>
CAREADVANTAGE, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(b) In December 1999 the Company was impleaded as a third-party defendant in a
lawsuit entitled Horizon Healthcare of New Jersey, Inc. vs. Allied
Specialty Care Services, Inc., pending in the United States District Court
for the District of New Jersey. This lawsuit seeks damages arising out of
an agreement between Horizon Healthcare of New Jersey, Inc. ("Horizon") and
Allied Specialty Care Services, Inc. ("Allied"). One of the claims made by
Horizon is that it is entitled to damages on account of Allied's agreement
to repay certain monies ("Risk Amounts") to Horizon in the event certain
charges for medical claims exceeded certain capitation amounts. Allied's
third-party complaint against the Company seeks to enforce an agreement
among Horizon, Allied and the Company wherein it is claimed that the
Company agreed to pay Allied one-half of any Risk Amounts that Allied
"owed" to Horizon, but no more than certain funds received by the Company
on account of such agreement. (A copy of the agreement among Horizon,
Allied and the Company has been filed as Exhibit 10(e) to Form 10-QSB dated
April 30, 1997.) The Company has previously established a reserve that
management believes is sufficient to satisfy any liability the Company may
have on account of Allied's claim. The parties have informally agreed to
settle their respective claims at a cost to the Company consistent with the
reserve. However, until such agreement has been executed there can be no
assurance that such claims have been settled.
Note D - Supplemental Cash Flow Information:
Below is supplemental cash flow information related to the three months ended
March 31, 2000 and April 30, 1999:
March 31, April 30,
2000 1999
---- ----
Income taxes paid 31,000 104,000
Interest paid 0 22,000
Note E - Stock Option Grant and 1996 Stock Option Plan Amendment
On January 8, 1999, the Board of Directors of the Company ("Board") granted
stock options for 3,600,000 shares of Common Stock of the Company to David
Noone, its Chief Executive Officer, in connection with Mr. Noone's employment
agreement. The options have an exercise price of $.03 per share and a term of 10
years. Options for 1,800,000 shares shall become exercisable as follows: (a) 1/3
on December 31, 1999; and (b) the remaining 2/3 shall become exercisable in
equal monthly amounts over the period January 1, 2000, to December 31, 2001.
Options for the remaining 1,800,000 shares originally were to become exercisable
over a period of 3 years commencing January 8, 2000 if certain performance
criteria were met. On February 24, 1999, the Board approved an amendment to
these options. Under the terms of this amendment the options for the remaining
1,800,000 shares shall become exercisable in three equal annual installments on
the fourth, fifth and sixth anniversary of the date of grant subject to
acceleration upon achievement of certain performance targets. The Company
realized compensation costs related to this amendment of approximately $252,000
and is amortizing this cost over the six-year vesting period of the options. In
connection with this grant, the Board amended the Company's 1996 Stock Option
Plan (the "Stock Option Plan") to provide the Board (or a Committee thereof)
with increased discretion in the terms and conditions of stock options it may
award.
On January 26, 1999, the Board granted stock options, constituting an aggregate
of 10,556,000 shares of Common Stock of the Company, to various employees, a
director and a former employee of the Company. The options have an exercise
price of $.08 per share and a term of 10 years subject to earlier termination
upon certain events. A portion of the options vests immediately and the
remainder vests over 3 years. In connection with these grants, the Board amended
the Stock Option Plan to increase the number of shares authorized for issuance
from 10% to 18% of the Company's authorized Common Stock, and it amended the
Company's 1996 Directors Stock Option Plan (the "Directors Stock Option Plan")
to provide the Board with increased discretion in the terms and conditions of
stock options it may award.
6
<PAGE>
CAREADVANTAGE, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In addition, on January 26, 1999, the Board amended the Company's Certificate of
Incorporation to increase the number of shares of the Company's Common Stock
authorized for issuance from 90,000,000 shares to 103,600,000 shares.
On July 7, 1999, the Company's stockholders approved the foregoing amendments to
the Company's Stock Option Plan, the amendments to the Company's Directors Stock
Option Plan and the amendment to the Company's Certificate of Incorporation.
Note F - Issuance of Common Stock
During the quarter ended March 31, 2000, certain employees exercised options
that resulted in the issuance of 659,167 shares of common stock.
7
<PAGE>
CAREADVANTAGE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Cautionary Statements:
Statements in this Form 10-QSB may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
("PSLRA"), including statements concerning management's plans, intentions and
expectations with respect to future financial performance and future events,
particularly relating to revenues from performance-based services and
re-negotiations of existing and new contracts with customers. Many of these
statements involve known and unknown risks, uncertainties and contingencies,
many of which are beyond our control, which could cause actual results and
outcomes to differ materially from those expressed in this 10-QSB. Although we
believe that our plans, intentions and expectations reflected in these
forward-looking statements are reasonable, we can give no assurance that our
plans, intentions or expectations will be achieved. For a more complete
discussion of these risk factors, please see "Cautionary Statements" in Item 6
of the Company's Form 10-KSB for the fiscal year ended December 31, 1999.
GENERAL OVERVIEW:
The Company is a holding company which, through its subsidiaries, CareAdvantage
Health Systems, Inc. ("CAHS") and Contemporary HealthCare Management, Inc.
("CHCM"), is in the business of providing health care cost containment services
designed to enable health care insurers and other health service organizations
to reduce the costs of medical services provided to their subscribers. The
services provided include utilization review in medical/surgical cases where
pre-authorization is required for hospitalization and for certain in-patient and
outpatient procedures, case management and disease management. The Company's
services have been principally provided to several of Blue Cross/Blue Shield
("BCBS") health services organizations in the Northeastern United States.
RESULTS OF OPERATIONS:
The following discussion compares the Company's results of operations for the
three months ended March 31, 2000, with those for the three months ended April
30, 1999. The Company's consolidated financial statements and notes thereto
included elsewhere in this report contain detailed information that should be
referred to in conjunction with the following discussion.
Three Months Ended March 31, 2000, Compared to Three Months Ended April 30, 1999
Revenues:
The Company's total operating revenues for the three-month periods ended March
31, 2000 and April 30, 1999 were approximately $4,550,000 and $3,955,000,
respectively. This represents an increase of approximately $595,000 for the
three-month period ended March 31, 2000 from the corresponding period of the
prior fiscal year. The increase for the three months ended March 31, 2000 is
largely due to increased revenue of approximately $255,000 from the realization
of performance revenues and increased revenue of approximately $340,000 due to
increased membership on a major account. Contracts that provide for
performance-based revenues require claims data that is supplied by the Company's
customers to calculate the achievement of goals for each period. Because
compilation of claims data typically lags the Company's actual performance by
several months, it is difficult to ensure complete accuracy when recording
performance-based revenues. Management has worked closely with its customers to
secure more timely and accurate data to improve the accuracy of reporting its
revenues, including, in some cases, the re-negotiation of the contract to a
fixed fee basis. Management believes its estimated performance-based revenues
contained in reported revenues for the three months ended March 31, 2000 are
accurate based upon the data available to management. However, information
received by the Company after the filing of this Form 10-QSB could result in an
adjustment of its estimates of performance-based revenues (which would be
reflected in subsequent quarters, if necessary).
Revenues from at-risk performance-based service contracts generally tend to
follow a pattern whereby significant revenues are generated during the initial
term of the contract, as savings opportunities are the greatest and then decline
thereafter as the opportunity for additional savings diminishes. As a result,
the Company's ability to
8
<PAGE>
CAREADVANTAGE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
increase revenues and gross margins is dependent upon its ability to enter into
additional contracts with new customers and/or expand the services provided to
existing customers
Cost of services:
The Company's total direct cost of services for the three-month periods ended
March 31, 2000 and April 30, 1999 was approximately $2,239,000 and $2,203,000,
respectively. This represents an increase of approximately $36,000 for the
three-month period ended March 31, 2000 over the corresponding period of the
prior fiscal year. This increase in the cost of services for the three-month
period ended March 31, 2000 was primarily due to increases in personnel costs of
approximately $152,000 offset by a decrease in depreciation and amortization
expense of approximately $120,000.
Operating expenses:
Selling, general, and administrative:
The Company's total selling, general, and administrative costs for the
three-month periods ended March 31, 2000 and April 30, 1999 were approximately
$1,909,000 and $2,334,000, respectively. This represents a decrease of
approximately $425,000 for the three-month period ended March 31, 2000 over the
corresponding period of the prior fiscal year. This decrease for the three-month
period ended March 31, 2000 is largely due to decreases in personnel costs of
approximately $146,000, professional fees and consulting costs of approximately
$201,000, and other general and administrative costs of approximately $78,000.
The higher personnel costs in the prior period ending April 30, 1999 were due to
certain non-recurring charges incurred. Management has taken and intends to take
additional steps to reduce general and administrative costs. There is no
assurance, however, that the Company will be successful in reducing general and
administrative costs by any significant amount.
Depreciation and amortization:
The Company's total depreciation and amortization costs for the three-month
periods ended March 31, 2000 and April 30, 1999 were approximately $222,000 and
$342,000, respectively. Approximately $44,000 and $126,000 were included in cost
of services for such periods.
Interest expense:
The Company's total net interest income for the three-month periods ended March
31, 2000 and April 30, 1999 was approximately $14,000 and $7,000, respectively.
This represents an increase of approximately $7,000 in net interest income for
the three-month period ended March 31, 2000 from the corresponding period of the
prior fiscal year. The increase in net interest income is largely due to
decreased interest costs of approximately $6,000 under the Master Lease
Agreement with IBM Credit Corporation ("IBM") and decreased interest costs of
approximately $7,000 related to an 8% Exchangeable Note in the original
principal amount of $3,600,000, maturing on June 30, 1998 assigned to Horizon
Blue Cross Blue Shield of New Jersey, Inc. (the "Horizon BCBSNJ Note"). In
addition, the Company realized decreased interest income of approximately $6,000
from the Company's short-term investments.
LIQUIDITY, FINANCIAL CONDITION AND CAPITAL RESOURCES:
General overview:
At March 31, 2000, the Company had a working capital surplus of approximately
$432,000, stockholders equity of approximately $2,464,000 and an accumulated
deficit since its inception of approximately $19,713,000. By continuing to
provide high quality care cost containment services to its existing customer
base of five BCBS plans, management believes it can continue to market its
products to other BCBS plans. This strategy is particularly significant given
the current health care environment where large third-party payers are merging
in an effort to protect their respective franchises and expand their market
reach. The various BCBS plans throughout the country
9
<PAGE>
CAREADVANTAGE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
are no exception to this phenomenon and the Company believes it can leverage its
core competencies to participate in this consolidating environment.
Management is of the opinion that it must continue to refine its current service
lines in order to continue to add value to existing and potential customers.
Additionally, the Company intends to broaden its services offered with unique
and complementary cost-containment strategies. Management will evaluate each
service with regard to anticipated changes in the health care industry, the cost
to enter any such line of service as well as the availability of competent
resources. To further expand its line of services, the Company intends to pursue
alternatives to its internal products and service development efforts by
entering into strategic alliances and joint ventures as well as through
acquisitions.
Financial condition:
At March 31, 2000, the Company had cash of approximately $1,471,000 and a
working capital surplus of approximately $432,000. At December 31, 1999, the
Company had cash of approximately $1,615,000 and a working capital surplus of
approximately $264,000.
Net cash (used by)/provided from operating activities amounted to approximately
($139,000) and $424,000 for the three-month periods ended March 31, 2000 and
April 30, 1999, respectively. The cash used by 2000 operating activities is
largely due to a an increase in customer receivable of approximately $376,000,
offset by non-cash charges of approximately $235,000.
Net cash used in investing activities amounted to approximately $24,000 and
$163,000 for the three-month periods ended March 31, 2000 and April 30, 1999,
respectively. The decrease in cash used of approximately $139,000 is due to
decreased capital outlays for computer-related equipment incurred during the
three-month period ended March 31, 2000.
Net cash provided/(used) in financing activities amounted to approximately
$19,000 and ($278,000) for the three-month periods ended March 31, 2000 and
April 30, 1999, respectively. The decrease in cash used of approximately
$297,000 is largely due to decreased principal payments to a
stockholder/customer of approximately $159,000 and decreased principal payments
related to the Master Lease Agreement with IBM of approximately $119,000, offset
by proceeds from issuance of common stock of approximately $19,000.
While there can be no assurances, management believes that its cash on hand,
projected future cash flows from operations and the Company's borrowing capacity
under its credit facility with Summit Bank (see discussion below under Capital
Resources) will provide adequate capital resources to support the Company's
anticipated cash needs for the next twelve months.
Capital resources:
Pursuant to the Horizon BCBSNJ Note, the Company owes $692,000 to Horizon BCBSNJ
as of March 31,2000. The Company has an oral agreement with Horizon BCBSNJ to
suspend payments on the note due to Horizon BCBSNJ through August 2000. The
Company is to resume making payments on September 1, 2000 in equal monthly
installments to repay the debt by March 31, 2001. While there can be no
assurances that future operating results will be sufficient to fund this
obligation of the Company, management expects such amounts to be funded through
operations.
The Company has a credit facility with a bank that provides for a $1,500,000
working capital revolver to be used for general working capital needs, which has
been extended through June 30, 2000. In September of 1998, the bank issued an
irrevocable letter of credit in the amount of $250,000, for the account of the
Company in favor of a vendor as security for the Company's obligation under a
non-cancelable operating lease. This letter of credit is issued under the
Company's credit facility and the availability is thus reduced by the face
amount of the letter of credit. The remainder of the credit facility is
available to the Company. As of March 31, 2000 the $250,000 irrevocable letter
of credit is still outstanding under the credit facility.
10
<PAGE>
CAREADVANTAGE, INC.
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
As of March 31, 2000, the Company's investments are not significantly impacted
by change in market interest rates. The Company does not believe that changes in
interest rates will have a material impact on future earnings or cash flows
during the next twelve months.
PART II--OTHER INFORMATION
Item 1. Legal Proceedings
For a description of legal proceedings, see Note C to the Financial Statements.
With the exception of the legal proceedings described in Note C to the Financial
Statements, there are no material pending legal proceedings other than ordinary
routine litigation incidental to the business of the Company.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of the Company's security holders during the
last quarter of calendar year ended March 31, 2000.
Item 5. Other Information
None.
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits
(27) Financial Data Schedule
11
<PAGE>
CAREADVANTAGE, INC.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
CareAdvantage, Inc
May 12, 2000 /s/ David G. Noone
--------------------------------------
David G. Noone
Chief Executive Officer
May 12, 2000 /s/ R. Christopher Minor
---------------------------------------
R. Christopher Minor
Chief Financial Officer
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000937252
<NAME> CAREADVANTAGE, INC.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 1,471,000
<SECURITIES> 0
<RECEIVABLES> 1,684,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,463,000
<PP&E> 716,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,495,000
<CURRENT-LIABILITIES> 3,031,000
<BONDS> 0
0
0
<COMMON> 83,000
<OTHER-SE> 2,381,000
<TOTAL-LIABILITY-AND-EQUITY> 5,495,000
<SALES> 0
<TOTAL-REVENUES> 4,550,000
<CGS> 0
<TOTAL-COSTS> 4,295,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (14,000)
<INCOME-PRETAX> 269,000
<INCOME-TAX> 238,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 238,000
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
