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Exhibit 99.3
FINANCIAL STATEMENTS
(RESTATED)
JUNE 30, 1996
PROMPT MEDICAL BILLING, INC.
MIAMI, FLORIDA
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The Stockholders
Prompt Medical Billing, Inc.
Miami, Florida
We have compiled the accompanying balance sheet of Prompt Medical Billing, Inc.
as of June 30, 1996, and the related statements of income and retained earnings
and cash flows for the six-month period then ended, in accordance with
Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
As disclosed in Note 1 to the financial statements, certain 1995 and 1994
unrecorded expenses were paid and contributed to capital by a related party.
Accordingly, the financial statements have been restated to reflect this
contribution.
Management has elected to omit substantially all of the disclosures required by
generally accepted accounting principles. If the omitted disclosures were
included in the financial statements, they might influence the user's
conclusions about the Company's financial position, results of operations and
cash flows. Accordingly, these financial statements are not designed for those
who are not informed about such matters.
September 23, 1996, except for Note 1,
as to which the date is October 30, 1996.
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BALANCE SHEET
JUNE 30, 1996
PROMPT MEDICAL BILLING, INC.
(restated)
ASSETS
CURRENT ASSETS
Cash $37,272
Accounts receivable 46,356
-------
Total current assets $83,628
=======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $20,296
Accrued pension contribution 16,125
-------
Total current liabilities 36,421
SHAREHOLDERS' EQUITY
Common stock, $1 par value, 1,000 shares
authorized, issued and outstanding 1,000
Paid in capital 17,916
Retained earnings 28,291
-------
Total shareholders' equity 47,207
-------
Total liabilities and shareholders'
equity $83,628
=======
See accountants' compilation report and the accompanying selected information.
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STATEMENT OF INCOME AND RETAINED EARNINGS
SIX-MONTH PERIOD ENDED JUNE 30, 1996
PROMPT MEDICAL BILLING, INC.
(restated)
REVENUES
Fees $ 120,192
Interest income 259
---------
Total revenues $ 120,451
EXPENSES
Pension 16,125
Printing 1,985
Telephone and utilities 3,498
Repairs and maintenance 5,516
Taxes and licenses 249
Postage and shipping 10,752
Supplies 3,191
Professional fees 600
Bank charges 369
---------
Total expenses 42,285
---------
Net income 78,166
RETAINED EARNINGS, January 1, 1996 14,882
Distributions (64,757)
---------
RETAINED EARNINGS, June 30, 1996 $ 28,291
=========
See accountants' compilation report and the accompanying selected information.
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STATEMENT OF CASH FLOWS
SIX-MONTH PERIOD ENDED JUNE 30, 1996
PROMPT MEDICAL BILLING, INC.
(restated)
CASH FLOWS FROM OPERATIVE ACTIVITIES:
Net income $ 78,166
Adjustments to reconcile net income to cash
provided by operating activities:
Decrease in accounts receivable 250
Decrease in accounts payable and accrued
pension contribution (1,888)
--------
Net cash provided by operating activities 76,528
CASH FLOWS FROM INVESTING ACTIVITIES:
Net payments received on advances to shareholders 25,257
CASH FLOWS FROM FINANCING ACTIVITIES:
Shareholder distributions (64,757)
--------
Net increase in cash 37,028
CASH, beginning of period 244
--------
CASH, end of period $ 37,272
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See accountants' compilation report and the accompanying selected information.
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SELECTED INFORMATION
SUBSTANTIALLY ALL INFORMATIVE DISCLOSURES HAVE BEEN OMITTED
JUNE 30, 1996
PROMPT MEDICAL BILLING, INC.
(restated)
NOTE 1 - SUBSEQUENT DISCOVERY OF FACTS
Subsequent to the issuance of the Company's financial
statements, management became aware that certain unrecorded
expenses paid and contributed to capital by a related party were
not recorded in 1995 and 1994. Recording these expenses
increased paid in capital by $17,916 and decreased retained
earnings by $17,916.
See accountants' compilation report.
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