SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 5, 1997
SMT Health Services Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-19897 25-1672183
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
10521 Perry Highway, Wexford, Pennsylvania 15090
(Address of principal executive offices) (ZIP code)
Registrant's telephone number including area code: 412-933-3300
Item 5. Other Information
Incorporated by reference herein is the Registrant's Press Release
dated February 5, 1997, a copy of which is filed as Exhibit 99.01 to this
Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits.
Exhibit No. Reference
99.01 Press Release dated Filed herewith.
February 5, 1997
SIGNATURES
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.
SMT HEALTH SERVICES INC.
(Registrant)
Date: February 19, 1997 By: _____/S/_David A. Zynn___________
David A. Zynn
Chief Financial Officer, Treasurer
and Principal Accounting Officer
EXHIBIT INDEX
Exhibit No. Reference
99.01 Press Release dated February 5, 1997 Filed herewith.
99.01
Contact: David Zynn, CFO James K. White, Managing Director
SMT Health Services Inc. Kehoe, White, Savage & Company, Inc.
(412) 933-3300 (310) 437-0655
http://www.smthealth.com
SMT HEALTH SERVICES INC. REPORTS FOURTH QUARTER AND
TWELVE MONTH EARNINGS; NET INCOME INCREASES 28% AND
76%, RESPECTIVELY; MOBILE MRI REVENUES RISE 49% AND 32%,
RESPECTIVELY; REVENUES DERIVED FROM EXISTING
CUSTOMERS INCREASES 22% AND 13%, RESPECTIVELY
Pittsburgh, PA, February 5, 1997 -- SMT Health Services Inc. (NASDAQ/NMS:
SHED, SHEDW) today reported that net income for the quarter ended December 31,
1996 increased 28% to $475,000, or $.15 per share, from $371,000, or $.12 per
share, for the fourth quarter of 1995. Revenues for the fourth quarter of 1996
increased $1,853,000, or 49%, to $5,606,000 from $3,753,000 for the same period
in 1995. The Company attributed the income and revenue gain for the three
months ended December 31, 1996 to increased revenues from the seven new units
placed in service during the year (including four units placed in service
during September through November 1996) as well as a 22% increase in revenues
derived from hospitals which the Company serviced during both comparable
periods, partially offset by a $95,000 deferred tax adjustment in the fourth
quarter. The Company's income before income taxes increased $428,000, or 88%,
to $917,000, as compared to $489,000 for the same period in 1995. The Company
stated that the earnings per share numbers for all reported periods have been
adjusted to reflect the 7% Common Stock Dividend paid January 14, 1997.
Excluding the 7% stock dividend adjustment, the earnings per share for the
three months ended December 31, 1996 and 1995 would have been $.16 and $.13,
respectively.
Net income for the fiscal year 1996 increased 76% to $2,411,000, or $.61 per
share, from $1,373,000, or $.46 per share, during 1995. Excluding the 7%
stock dividend adjustment, the earnings per share for 1996 and 1995 would have
been $.66 and $.49, respectively. Revenues for fiscal 1996 increased
$4,054,000, or 27%, to $19,212,000 compared to $15,158,000 during 1995.
Excluding the revenues of $548,000 related to the Cardiac Partnerships which
the Company sold on June 30, 1995, 1996 mobile MRI revenues increased
approximately 32% from 1995. The Company attributed the increased
profitability and revenues for the fiscal year to the seven new units acquired
throughout the year (including four new units placed in service during
September through November 1996), a 13% increase in revenues derived from
hospitals which the Company serviced during both comparable periods and
greater operating efficiencies. Net income for fiscal 1996 further increased
as a result of several one-time tax adjustments totaling approximately
$285,000. Excluding the one-time adjustments, fiscal year 1996 net income
would have approximated $2,126,000, or $.55 per share. The Company operated
a weighted average of approximately 14 units during 1996.
The Company has available approximately $8.2 and $10.1 million of federal and
state tax net operating loss carryforwards which are available to offset future
taxable income through 2010. The Company anticipates that its future effective
tax rate will approximate 39%.
The Company also announced that it has signed a purchase order and intends to
purchase its nineteenth mobile MRI unit. The Company expects to take delivery
and begin operations with this new unit in April 1997.
The Company further announced that 154,761 publicly traded Warrants have been
exercised. The Company has received cash proceeds of approximately $1,083,000
and issued 168,089 shares of Common Stock as a result of such Warrant exercises.
As of January 31, 1997, 1,529,189 Warrants to purchase 1,718,044 Common Shares
remain outstanding. The Warrants expire at 5:00 p.m. on March 4, 1997. Each
Warrant entitles the holder to purchase 1.1235 shares of Common Stock for $7.00.
SMT Health Services Inc., through its current fleet of eighteen mobile MRI
units, provides diagnostic imaging services to healthcare providers in
Pennsylvania, West Virginia, North Carolina, South Carolina, Virginia, Ohio
and Kentucky.
(table follows)
SMT HEALTH SERVICES INC.
AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
For The Three Months Ended For The Twelve Months Ended
December 31, December 31,
1996 1995 1996 1995
Total Revenues $5,606,000 $3,753,000 $19,212,000 $15,158,000*
Operating Expenses 1,802,000 1,215,000 6,280,000 5,396,000
Depreciation and
Amortization 1,418,000 953,000 4,725,000 3,679,000
Selling, General and
Administrative 875,000 657,000 2,877,000 2,472,000
Interest Expense 594,000 439,000 2,041,000 1,758,000
Other -- -- ( 300,000) --
Total Costs and
Expenses $4,689,000 $3,264,000 $15,623,000 $13,305,000
Income Before
Income Taxes $ 917,000 $ 489,000 $ 3,589,000 $ 1,851,000
Income Taxes 442,000** 118,000 1,178,000** 478,000
Net Income $ 475,000 $ 371,000 $ 2,411,000 $ 1,373,000
Earnings Per Common
Share $ .15 $ .12 $ .61 $ .46
Average Number of
Shares Outstanding 3,689,000 2,838,000 3,233,000 2,770,000
*Includes revenues related to the cardiac partnerships which were sold on
June 30, 1995 totaling $548,000.
**Includes a $95,000 unfavorable tax adjustment and a net $105,000 favorable
tax adjustment for the three and twelve months ended December 31, 1996,
respectively.
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