United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q/A
(Mark One)
/x/ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities and
Exchange Act of 1934 For the Period Ended March 31, 1993
or
/ / Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the Transition Period From __________ to __________
Commission file number 1-8756
AMERICAN HEALTHCARE MANAGEMENT, INC.
(Exact name of registrant as specified in its charter)
Delaware 75-1636788
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
660 American Avenue, Suite 200
King of Prussia, Pennsylvania 19406-0909
(Address of principal executive offices) (Zip Code)
(215) 768-5900
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes /X/ No / /
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by the
court. Yes /X/ No / /
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.01 Par Value -- 27,137,151 shares as of April 30, 1993
Index
AMERICAN HEALTHCARE MANAGEMENT, INC.
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets --
March 31, 1993 and December 31, 1992 3-4
Condensed consolidated statements of income --
Three months ended March 31, 1993 and 1992 5
Condensed consolidated statements of cash
flows -- Three months ended March 31, 1993 and 1992 6
Notes to condensed consolidated financial
statements -- March 31, 1993 7-8
SIGNATURE 9
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN HEALTHCARE MANAGEMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1993 1992
___________ _____________
(Unaudited) (Note A)
(In thousands)
ASSETS
Current Assets:
Accounts receivable, net $ 49,011 $ 44,400
Supplies, at cost 4,362 4,267
Funds held by trustee--current portion 1,048 1,058
Other 3,933 3,471
________ ________
TOTAL CURRENT ASSETS 58,354 53,196
Funds held by trustee 3,615 4,349
Other assets 10,358 12,007
Property, plant, and equipment, net 274,370 268,284
________ ________
$346,697 $337,836
________ ________
________ ________
See notes to condensed consolidated financial statements
AMERICAN HEALTHCARE MANAGEMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1993 1992
____________ ____________
(Unaudited) (Note A)
(In thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Bank checks outstanding, less cash in bank $ 2,549 $ 3,364
Accounts payable 24,486 22,893
Accrued compensation 8,314 7,959
Accrued interest 1,597 1,767
Other payables and accruals 2,584 3,481
Current portion of long-term debt 9,941 10,932
________ ________
TOTAL CURRENT LIABILITIES 49,471 50,396
Other liabilities 18,130 15,534
Long-term debt 145,805 143,822
Stockholders' Equity:
Common stock, $.01 par; authorized
60,000,000 shares; 27,137,151 and
27,073,280 issued and outstanding
1993 and 1992, respectively 271 271
Additional paid-in capital 138,378 138,291
Deficit ( 5,358) ( 10,478)
________ ________
133,291 128,084
________ ________
$346,697 $337,836
________ ________
________ ________
Note: The balance sheet at December 31, 1992 has been derived from the
audited financial statements at that date but does not include all the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See notes to condensed consolidated financial statements
AMERICAN HEALTHCARE MANAGEMENT, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
1993 1992
________ ________
Net revenue $ 86,951 $ 78,540
Operating Expenses:
Salaries, benefits and other 68,321 62,494
Provision for bad debts 5,085 3,895
Depreciation 4,669 4,013
Interest 3,374 1,678
________ ________
81,449 72,080
________ ________
Income Before Income Taxes 5,502 6,460
Income tax expense 382 252
________ ________
Net Income $ 5,120 $ 6,208
________ ________
________ ________
Weighted average number of shares and equivalents 28,625 28,618
________ ________
________ ________
Earnings per share $ .18 $ .22
________ ________
________ ________
See notes to condensed consolidated financial statements
AMERICAN HEALTHCARE MANAGEMENT, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31,
1993 1992
________ ________
OPERATING ACTIVITIES
Net income $ 5,120 $ 6,208
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation and amortization 4,891 4,013
Troubled debt interest -- 262
Troubled debt interest paid in cash -- ( 6,394)
Provision for bad debts 5,085 3,895
Operations charged against reserve for losses
on disposal -- 141
Effect of changes in operating assets and
liabilities:
Accounts receivable ( 10,779) ( 4,793)
Supplies and other ( 446) ( 320)
Accounts payable 1,067 ( 414)
Other current liabilities ( 1,054) ( 920)
________ ________
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,884 1,678
INVESTING ACTIVITIES
Purchases of property and equipment ( 2,748) ( 4,658)
Funds held by trustee and other 451 ( 1,772)
________ ________
NET CASH USED IN INVESTING ACTIVITIES ( 2,297) ( 6,430)
FINANCING ACTIVITIES
Advance payments on troubled debt -- ( 118)
Net principal payments on other long-term debt ( 859) ( 347)
Proceeds from issuance of stock 87 --
Bank checks outstanding, less cash in bank ( 815) $ --
________ ________
NET CASH USED IN FINANCING ACTIVITIES ( 1,587) ( 465)
________ ________
Decrease in cash and cash equivalents -- ( 5,217)
Cash and cash equivalents at beginning of year -- 15,749
________ ________
Cash and cash equivalents at end of period $ -- $ 10,532
________ ________
________ ________
Supplemental disclosure of cash flow information:
Interest paid (net of $10 capitalized in 1993) $ 3,554 $ 7,991
Income taxes paid 330 15
Capitalized lease obligations,
principally equipment 1,851 --
See notes to condensed consolidated financial statements
AMERICAN HEALTHCARE MANAGEMENT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
March 31, 1993
NOTE A -- SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation: The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. 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 months ended March 31, 1993 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 1993. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's
annual report on Form 10-K for the year ended December 31, 1992.
Earnings Per Share: The computation of earnings per share is based on the
weighted average number of outstanding shares and equivalents. Stock
equivalents consist of stock options and warrants representing 1,506,000 and
1,682,000 equivalent shares for the three months ended March 31, 1993 and 1992,
respectively.
NOTE B -- PRO FORMA RESULTS OF OPERATIONS
Effective June 30, 1992, the Company refinanced approximately $100 million of
fixed-rate senior secured debt ("Old Debt") bearing a weighted average annual
interest rate at June 30, 1992 of 12.8 percent with approximately $100 million
(of a $105 million total facility) of bank-financed senior secured debt ("New
Debt") with a floating rate of interest (6.4 percent at March 31, 1993). The
Old Debt was accounted for in conformity with Financial Accounting Standards
Board (FASB) Statement No. 15, "Accounting by Debtors and Creditors for
Troubled Debt Restructurings." Accounting under FASB Statement No. 15 rules
had the effect of reporting interest expense for the three months ended March
31, 1992 at an amount less than otherwise would have been reported. Upon
refinancing of the Old Debt, the required application of the accounting rules
to interest expense under FASB Statement No. 15 was eliminated.
Income before extraordinary item for the three months ended March 31, 1993 and
pro forma income before extraordinary item for the three months ended March 31,
1992, assuming the refinancing occurred January 1, 1992, are presented below.
Three Months Ended
March 31,
1993 1992
________ ________
As Pro
Reported Forma
Income before extraordinary item, as reported $ 5,120 $ 6,208
Less amortization of future interest
in recorded liablity -- ( 2,949)
Add pro forma reduction of interest
expense due to recapitalization and
lower rate of interest under the New Debt -- 1,433
________ ________
Net change -- ( 1,516)
Tax benefit effect of change -- ( 59)
________ ________
Income before extraordinary item $ 5,120 $ 4,751
________ ________
________ ________
Earnings per share before
extraordinary item $0.18 $0.17
________ ________
________ ________
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
American Healthcare Management, Inc.
(Registrant)
February 4, 1994 /s/ Bruce J. Colburn
___________________ __________________________________
(Date) Bruce J. Colburn
Vice President, Controller
Chief Accounting Officer