THIS PAPER DOCUMENT IS BEING
SUBMITTED PURSUANT TO RULE
901(d) OF REGULATION S-T
x
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number: 000-16893
DANNINGER MEDICAL TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 31-0992628
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No)
5160-B BLAZER MEMORIAL PARKWAY
DUBLIN, OHIO
43017-1339
(Address of principal executive offices)
(614) 718-0500
(Registrant's telephone number)
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
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4,864,424
Shares of Common Stock Outstanding
As Of
September 30, 1996
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
1996 1995
(Unaudited) (Audited)
------------- ------------
ASSETS
------
CURRENT ASSETS:
Cash $ 241
Accounts receivable trade (net of allowance for
doubtful accounts of $354 and $204 for
1996 and 1995, respectively) 5,940 $ 3,497
Inventories 5,193 4,227
Prepaid expenses, and other current assets 631 409
Deferred income taxes 185 174
------------- ------------
Total current assets 12,190 8,307
------------- ------------
Property and equipment, net 1,561 724
------------- ------------
OTHER ASSETS:
Other asset 102 102
Intangibles (net of accumulated amortization
of $84 and $31 for 1996 and 1995,
respectively) 3,318 202
Deferred income taxes 132 182
------------- ------------
Total assets $ 17,303 $ 9,517
------------- ------------
------------- ------------
The accompanying notes are an integral part
of the financial statements
1
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands except share amounts)
September 30, December 31,
1996 1995
(Unaudited) (Audited)
------------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Cash overdraft $ 167
Current portion, term debt $ 712 3,380
Current portion, capital lease obligations 52 26
Accounts payable, trade 2,306 1,146
Accrued expenses, and other liabilities 612 402
------------- ------------
Total current liabilities 3,682 5,121
------------- ------------
Non-current portion, term debt 8,797 839
------------- ------------
Obligations under capital leases, net of current
maturities 114 35
------------- ------------
Commitments and Contingencies
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value:
Authorized, 10,000,000 shares; issued and
outstanding 4,864,424 and 4,707,490 shares
for 1996 and 1995, respectively 49 47
Paid-in capital 4,079 3,367
Retained earnings 582 108
------------- ------------
Total shareholders' equity 4,710 3,522
------------- ------------
Total liabilities and shareholders' equity $ 17,303 $ 9,517
------------- ------------
------------- ------------
The accompanying notes are an integral part
of the financial statements
2
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three month and nine month periods ending September 30, 1996 and 1995
(In thousands except share and per share amounts)
(Unaudited)
_________________________________________________________________________________________________________
Three Three Nine Nine
Months Ended Months Ended Months Ended Months Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
_________________________________________________________________________________________________________
Revenue:
Net sales $ 3,999 $ 2,758 $ 11,162 $ 8,451
Lease and rental revenue 543 236 1,210 492
---------- ----------- ----------- -----------
4,542 2,994 12,372 8,943
Cost of goods sold 1,873 1,988 5,451 4,626
---------- ----------- ----------- -----------
Gross margin 2,669 1,006 6,921 4,317
---------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 1,255 915 3,209 2,327
General and administrative 708 503 1,959 1,474
Research and development 308 332 763 904
---------- ----------- ----------- -----------
2,271 1,750 5,931 4,705
---------- ----------- ----------- -----------
Operating income (loss) 398 (744) 990 (388)
Other expense:
Interest expense, net 153 76 370 199
Other 4 4
---------- ----------- ----------- -----------
153 80 370 203
Income (loss) before
income taxes 245 (824) 620 (591)
Income tax expense (benefit) 54 (58) 146 18
---------- ----------- ----------- -----------
Net income (loss) $ 191 $ (766) $ 474 $ (609)
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
Earnings per share:
Net income (loss) per share $ .04 $ ( .16) $ .09 $ (.13)
---------- ----------- ----------- -----------
Weighted average shares
outstanding including common
stock equivalents 5,013,661 4,687,739 5,008,837 4,621,986
_______________________________________________________________________________________________________
The accompanying notes are an integral part
of the financial statements
3
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine month periods ending September 30, 1996 and 1995
(In thousands)
(Unaudited)
1996 1995
--------- ---------
Net cash used in operating activities (1,136) (1,918)
--------- ---------
Cash flows used in investing activities:
Payments received on notes receivable 113
Purchases of property and equipment (415) (416)
Purchase of business, net of cash
acquired (976)
--------- ---------
Net cash used in investing activities (1,391) (303)
--------- ---------
Cash flows from financing activities:
Proceeds from term debt 1,334 1,831
Proceeds from convertible subordinated
debenture offering 5,250
Repayment of term debt and capitalized
lease obligations (3,314) 17
Debt issue costs (542)
Cash overdraft (167)
Proceeds from exercise of stock options 207 407
--------- ---------
Net cash provided by
financing activities 2,768 2,255
--------- ---------
Net increase in cash 241 34
Cash balance at the beginning of the period 0 3
--------- ---------
Cash balance at the end of the period $ 241 $ 37
--------- ---------
--------- ---------
The accompanying notes are an integral part
of the financial statements
4
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Management's Statement
In the opinion of management, the accompanying unaudited financial
statements contain all adjustments (all of which are normal and recurring
in nature) necessary to present fairly the financial position of Danninger
Medical Technology, Inc. and Subsidiaries at September 30, 1996, and the results
of operations and cash flows for the three month and nine month periods
ending September 30, 1996 and 1995. The notes to the Consolidated Financial
Statements which are contained in the 1995 Annual Report to Shareholders should
be read in conjunction with these Consolidated Financial Statements.
2. Inventories
Inventories are valued at the lower of first-in, first-out cost or market
and consisted of the following (in thousands):
September December
1996 1995
Raw materials $ 858 $ 671
Work-in-process 88 108
Finished goods 3,137 2,686
Consigned inventory 1,110 762
-------- -------
$ 5,193 $ 4,227
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-------- -------
3. Income Taxes
The Company provides for federal, state, and local income taxes in interim
periods using an estimated effective tax rate for the year. The Company
maintains valuation allowances of $584,000 against net deferred tax assets.
4. Intangibles
Intangible assets include patents and goodwill. Intangible assets
including goodwill are amortized over their useful lives from five to 25
years. Management periodically evaluates the recoverability of all intangible
assets based on estimated future cash flows.
5. Term Debt
Term debt included $5,250,000 of Convertible Subordinated Debentures
("Debentures") at 8.5% interest due June 1, 2003. The Debentures are
convertible prior to maturity or redemption into the Company's Common Stock
at $8.125 per share beginning July 1, 1999. The Company will be obligated to
redeem Debentures tendered by June 1, 1999 at their fair amount plus accrued
interest. Redemption may be accelerated in the event of a change in control
of the Company and in certain other circumstances as described in the bond
indenture. The Debentures contain certain convenants with respect to default
of interest and redemption of payments and defaults under other indebtedness
of the Company in excess of $1,000,000.
In connection with the acquisition of SOS, a $1,500,000 note payable to
the seller with interest at the prime rate (8.25% at September 30, 1996).
Interest only in payable monthly and the note is due in September 1999.
6. Accounting Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosures 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.
7. New Accounting Standards
In October 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 123, Accounting for
Stock-Based Compensation. The Company does not plan to adopt the expense
recognition provisions of this Standard; therefore, the adoption of this
Standard will have no effect on the Company's financial condition or results
of operations.
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121, Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of. The Company
adopted this Statement effective January 1, 1996. The adoption of this
Standard had no effect on the Company's fianncial conditions or results of
operations as of September 30, 1996.
8. Contingency
The Company maintains a claims made product liability insurance policy
with $50,000 per occurrence and $250,000 aggregate retention limits. Beyond
these retention limits, the policy covers aggregate insured claims made during
each policy year up to $5,000,000.
The Company and other spinal implant manufacturers have been named as
defendants in various class action product liability lawsuits alleging that the
plaintiffs were injured by spinal implants supplied by the Company and others.
All such lawsuits were consolidated for pretrial proceedings in the Federal
District Court for the Eastern District of Pennsylvania and on February 22,
1995, the plaintiffs were denied class certification. In response to the denial
of class certification, a large number of additional individual lawsuits have
been filed alleging, in addition to damages from spinal implants, a
5
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, Continued
(UNAUDITED)
conspiracy among manufacturers, physicians and other spinal implant industry
members. Approximately 500 such lawsuits have been filed in which the
Company is a party. Approximately fifteen of such cases involve individual
plaintiffs utilizing implants supplied by the Company. The Company cannot
estimate precisely at this time the number of such lawsuits that may
eventually be filed. The vast majority of such lawsuits are pending in
federal courts and are in preliminary stages. Discovery proceedings,
including the taking of depositions, have commenced in certain lawsuits.
Plaintiffs in these cases typically seek relief in the form of monetary
damages, often in unspecified amounts. While the aggregate monetary damages
eventually sought in all of such individual actions is substantial and
exceeds the limits of the Company's product liability insurance policies, the
Company believes that it has affirmative defenses, and that these individual
lawsuits are otherwise without merit. An estimate of the amount of loss
cannot be made as the Company does not have sufficient information on which
to base an estimate. All pending cases are being defended by the Company's
insurance carrier, in some cases under a reservation of rights. There can be
no assurance, however, that the $5,000,000 per annum limit of the Company's
coverage will be sufficient to cover the cost of defending all lawsuits or
the payment of any amounts that may be paid in satisfaction of any
settlements of judgments. Further, there can be no assurance that the
Company will continue to be able to obtain sufficient amounts of product
liability insurance coverage at commercially reasonable premiums.
In addition to the above, in the ordinary course of business the Company
has been named as a defendant in various other legal proceedings. These
actions, when finally concluded, will not, in the opinion of the Company, have a
material adverse affect upon the financial position or results of operations of
the Company. However, there can be no assurance that future quarterly or
annually operating results will not be materially adversely affected by the
final resolution of these matters.
Financial instruments that potentially subject the Company to
concentrations of credit risk consist principally of trade accounts receivable
(domestic and international). The Company follows certain guidelines in
determining the credit-worthiness of domestic and foreign customers. The credit
risk associated with each customer and each country is reviewed before a credit
decision is made. All international sales are denominated in U.S. dollars.
Certain of the Company's accounts receivable result from third party
reimbursements that may be dependent on limitations imposed by the payor on the
amount of reimbursement. The Company records the receivable and related revenue
net of such limitations.
9. Acquisition of Business
In September 1996, the Company acquired all of the outstanding stock of
Surgical & Orthopedic Specialties, Inc. (SOS) for approximately $3.0 million.
The acquisition has been accounted for on the purchase method. The
consideration was comprised of $1.1 million cash, $0.5 million of common
stock, $1.5 million in a seller financed note payable. SOS is engaged in the
rental of recovery products. Intangible assets in the accompanying
consolidated balance sheet includes approximately $2.5 million of goodwill
resulting from this transaction which is amortized over 25 years. The
acquisition of SOS was accounted for under the purchase method. Accordingly,
the purchase price has been allocated to the assets acquired and liabilities
assumed based on their estimated fair values at the date of acquisition. The
results of operations of SOS have been included in the Consolidated
Statements of Operations from the acquisition date.
Business acquired (in thousands):
Fair value of assets $3,794
Fair value of liabilities (818)
Common stock issued (500)
Acquisition indebtedness (1,500)
-------
Net cash paid $ 976
-------
-------
6
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following table shows the Company's operating results as a percent
of revenues for the periods indicated for certain items reflected in the
statement of operations.
_______________________________________________________________________________
Percent Percent
of Revenues of Revenues
for for
three months nine months
ending ending
September 30, September 30,
_______________________________________________________________________________
1996 1995 1996 1995
---- ---- ---- ----
Net sales 88.0% 92.1% 90.2% 94.5%
Lease/rental revenue 12.0% 7.9% 9.8% 5.5%
---- ---- ---- ----
100.0% 100.0% 100.0% 100.0%
Cost of goods sold 41.2% 66.4% 44.1% 51.7%
Gross margin 58.8% 33.6% 55.9% 48.3%
Operating expenses:
Sales and marketing 27.6% 30.6% 25.9% 26.0%
General and administrative 15.6% 16.8% 15.8% 16.5%
Research and development 6.8% 11.1% 6.2% 10.1%
Interest expense, net 3.4% 2.5% 3.0% 2.2%
Other expense .1% .1%
Income (loss) before income
taxes 5.4% (27.5%) 5.0% (6.6%)
Income tax expense (benefit) 1.2% (1.9%) 1.2% .2%
Net income (loss) 4.2% (25.6%) 3.8% (6.8%)
________________________________________________________________________________
7
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Company continues to develop its strategy of focusing on increasing
market penetration with its Synergy-TM- spinal implant system as it continues to
expand its distribution network in the United States and internationally. The
Company also continues to assess and develop new products to add to its existing
spinal implant line.
In addition, the Company continues to analyze the rental market for
orthopedic rehabilitation devices. In 1994, the Company formed a subsidiary
to determine the feasibility of entering this market. In September, 1996,
the Company acquired Surgical and Orthopedic Specialities, Inc. (SOS), an
independent orthopedic dealer, for $3 million (in stock, cash, note, and
non-compete agreement). The Company expects to continue negotiating
additional similar transactions with other independent dealers. There can be
no assurance, however, that the Company will be able to successfully
implement this strategy by reaching final purchase agreements with the
independent dealers.
FINANCIAL CONDITION AS OF SEPTEMBER 30, 1996
As of September 30, 1996, the Company's working capital position
increased by $5,322,000 resulting in a working capital ratio of 3.31 to 1.
The increase in working capital is principally attributable to the retirement
of the $3,000,000 line of credit facility with the proceeds from the
Company's $5,250,000 convertible subordinated debenture offering which was
completed in May. The $3,000,000 line of credit facility has been renewed
and is available to fund future working capital requirements. As of
September 30, 1996, $3,000,000 is available. In addition, working capital
increased due to the operating results experienced by the Company during the
third quarter of 1996.
Accounts receivables increased by $2,443,000, inventories increased by
$966,000 and trade payables increased by $1,160,000. The increase in
accounts receivables is attributable to increased sales in the third quarter.
Also, accounts receivable increased by approximately $765,000 and accounts
payable increased by approximately $201,000 when the Company acquired SOS.
The increase in the inventory is primarily due to supporting the growing
spinal implant business.
During the second quarter of 1996, the Company received $5,250,000
during the debenture offering. During the third quarter of 1996, the Company
entered into a note payable and a non-compete agreement for $1,500,000 during
the acquisition of SOS. During 1996, the Company had additional borrowings
of $1,827,000 which contributed to an overall increase in liabilities.
The Company believes its bank loan facility, working capital, and funds
anticipated to be generated by operations will be sufficient to fund the
Company's growth plans for the foreseeable future.
8
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED
TO THE THREE MONTHS ENDED SEPTEMBER 30, 1995
Total revenue increased 51.7% for the three months ended September 30, 1996
to $4,542,000 from $2,994,000 for the three months ended September 30, 1995.
The increase is primarily attributable to increased sales of the Company's
Synergy-TM- spinal implant system. In addition, the Company benefited from
continued penetration into the orthopedic home care rental market.
Cost of sales as a percentage of total revenue decreased to 41.2% for
the three months ended September 30, 1996 from 66.4% for the three months
ended September 30, 1995. The decrease is primarily due to the establishment
of an inventory reserve of $312,000 or approximately 10% of sales during the
third quarter of 1995. The decrease was also impacted by a change in the
sales mix from 1995 to 1996, from recovery products which have high cost of
sales percentages to the spinal implant business and the orthopedic home care
rental business which have lower cost of sales percentages.
Sales and marketing expense decreased to 27.6% from 30.6% of total
revenue for the three months ended September 30, 1996 and 1995, respectively.
The Company has been effective at reducing the amount and cost of sales
travel. General and administrative expenses decreased to 15.6% from 16.8% of
total revenue for the three months ended September 30, 1996 and 1995,
respectively. Research and development expenses decreased to 6.8% from 11.1%
of total revenue for the three months ended September 30, 1996 and 1995,
respectively, principally as a result of higher level of expenditures in 1995
in connection with obtaining Section 510(k) approval of the Synergy-TM-
spinal implant system.
These factors resulted in an overall increase in operating income to
$398,000 or 8.8% of total revenue for the three months ended September 30, 1996
from $(744,000) or (24.8%) for the three months ended September 30, 1995.
Interest expense increased to 3.4% from 2.5% of total revenue for the
three months ended September 30, 1996 and 1995, respectively, as a result of
increased borrowings to provide additional working capital.
Net income (loss) increased to $191,000 from $(766,000) for the three
months ended September 30, 1996 and 1995, respectively, and earnings per share
increased to $.04 from $(.16) for the same periods.
9
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED
TO THE NINE MONTHS ENDED SEPTEMBER 30, 1995
For the nine months ended September 30, 1996 total revenue increased 38.3%
to $12,372,000 from $8,943,000 for the nine months ended September 30, 1995.
Cost of goods sold decreased to 44.1% from 51.7% for the nine months ended
September 30, 1996 and 1995, respectively. As a percentage of total revenue,
sales and marketing expense remained constant to 25.9% from 26.0%, general and
administrative expenses decreased to 15.8% from 16.5% and research and
development expense decreased to 6.2% from 10.1% for the nine months ended
September 30, 1996 and 1995, respectively. Interest expense, net increased to
3.0% from 2.2% for the same periods.
Net income (loss) for the nine months ended September 30, 1996 increased to
$474,000 from $(609,000) for the nine months ended September 30, 1995. Earnings
per share increased to $.09 from $(.13) for the same periods.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
Except for the historical information in this report, it includes
forward-looking statements that involve risks and uncertainties, including, but
not limited to quarterly fluctuations in results, the management of growth, and
other risks detailed from time to time in the Company's Securities and Exchange
Commission filings, including the Company's Form 10-K for the fiscal year ended
December 31, 1995. Actual results may differ materially from management
expectations.
10
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
The Company maintains a claims made product liability insurance policy
with per occurrence ($50,000) and aggregate ($250,000) retention limits. Beyond
these retention limits, the policy covers aggregate insured claims made during
each policy year up to $5,000,000.
The Company and other spinal implant manufacturers have been named as
defendants in various class action product liability lawsuits alleging that
the plaintiffs were injured by spinal implants supplied by the Company and
others. All such lawsuits were consolidated for pretrial proceedings in the
Federal District court for the Eastern District of Pennsylvania and on
February 22, 1995 the plaintiffs were denied class certification. In
response to the denial of class certification, a large number of additional
individual lawsuits have been filed alleging, in addition to damages from
spinal implants, a conspiracy among manufacturers, physicians and other
spinal implant industry members. Approximately 500 such lawsuits have been
filed in which the Company is a party. Approximately fifteen of such cases
involve individual plaintiffs utilizing implants supplied by the Company.
The Company cannot estimate precisely at this time the number of such
lawsuits that may eventually be filed. The vast majority of such lawsuits are
pending in federal courts and are in preliminary stages. Discovery
proceedings, including the taking of depositions, have commenced in certain
of the lawsuits. Plaintiffs in these cases are typically seek relief in the
form of monetary damages, often in unspecified amounts. While the aggregate
monetary damages eventually sought in all of such individual actions is
substantial and exceeds the limits of the Company's product liability
insurance policies, the Company believes that it has affirmative defenses,
and that these individual lawsuits are otherwise without merit. An estimate
of the amount of loss cannot be made as the Company does not have sufficient
information on which to base an estimate. All pending cases are being
defended by the Company's insurance carrier, in some cases under a
reservation of rights. There can be no assurance, however, that the
$5,000,000 per annum limit of the Company's coverage will be sufficient to
cover the cost of defending all lawsuits or the payment of any amounts that
may be paid in satisfaction of any settlements or judgments. Further, there
can be no assurance that the Company will continue to be able to obtain
sufficient amounts of product liability insurance coverage at commercially
reasonable premiums.
In addition to the above, in the ordinary course of business the Company
has been named as a defendant in various other legal proceedings. These
actions, when finally concluded, will not, in the opinion of the Company, have a
material adverse affect upon the financial position or results of operations of
the Company. However, there can be no assurance that future quarterly or
annually operating results will not be materially adversely affected by the
final resolution of these matters.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The exhibits listed in the accompanying index to exhibits are filed as
a part of this Report.
(b) Reports on Form 8-K
The Company filed the following Current Report on Form 8-K since
June 30, 1996:
Current Report on Form 8-K, dated September 20, 1996, filed with the
Securities and Exchange Commission on September 20, 1996 (Items 2
and 7)
11
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
DANNINGER MEDICAL TECHNOLOGY, INC.
(Registrant)
Dated: November 13, 1996 /S/ Joseph A. Mussey
Joseph A. Mussey
Chief Executive Officer, President,
and Treasurer
Dated: November 13, 1996 /S/ Paul A. Miller
Paul A. Miller
Chief Financial Officer
(Principal Financial/Accounting Officer)
12
DANNINGER MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
FORM 10-Q
EXHIBIT INDEX
Exhibit No. Exhibit
10(a) Employment Agreement, dated November 7, 1996,
between the Company and Joseph A. Mussey.
10(b) Employment Agreement, dated November 7, 1996,
between the Company and Paul A. Miller.
10(c) Employment Agreement, dated November 7, 1996,
between the Company and Ira Benson.
10(d) Employment Agreement, dated November 7, 1996,
between the Company and Thomas E. Zimmer.
10(e) Employment Agreement, dated November 7, 1996,
between the Company and Paul A. Mellinger.
10(f) Non-Competition Agreement dated September 6, 1996,
between the Company and Stephen R. Draper.
11 Statement re: Computation of Per Share Earnings
27 Financial Data Schedules
13