Exhibit 99.3
SUMMIT MEDICAL SYSTEMS, INC.
PRO FORMA RESULTS OF ACQUISITION OF C.L. McINTOSH & ASSOCIATES, INC.
Effective December 31, 1996, the Company exchanged 976,453 shares of common
stock for all outstanding shares of common stock in a pooling of interests of
C.L. McIntosh & Associates, Inc., a health care consulting firm providing
services in the areas of Medicare and regulatory affairs.
Unaudited pro forma condensed results of operations of the Company for the year
ended December 31, 1995 and nine months ended September 30, 1996 as if the
acquisition had been completed at the beginning of the respective periods are:
Summit C.L. McIntosh
Medical & Associates, Pro Forma Pro Forma
Systems, Inc. Inc. Adjustments Combined
------------- ---- ----------- --------
(Restated)
Year ended December 31, 1995:
Revenue $ 11,586,577 $3,895,534 $15,482,111
Cost of sales 3,713,394 2,230,719 5,944,113
------------ ---------- -----------
Gross profit 7,873,183 1,664,815 9,537,998
Operating expenses 17,978,261 1,158,185 19,136,446
------------ ---------- -----------
Income (loss) from operations (10,105,078) 506,630 (9,598,448)
Interest income, net 586,640 (12,046) 574,594
------------ ---------- -----------
Income (loss) before income taxes (9,518,438) 494,584 (9,023,854)
Income tax expense - - -
------------ ---------- -----------
Net income (loss) $ (9,518,438) $ 494,584 $(9,023,854)
============ ========== ===========
Net loss per share $ (1.70) $ (1.37)
------------ -----------
Weighted average shares outstanding 5,604,469 6,580,922
------------ -----------
Nine months ended
September 30, 1996:
Revenue $ 11,345,082 $2,713,933 $14,059,015
Cost of sales 3,940,604 1,514,232 5,454,836
------------ ---------- -----------
Gross profit 7,404,478 1,199,701 8,604,179
Operating expenses 11,086,036 955,885 12,041,921
------------ ---------- -----------
Income (loss) from operations (3,681,558) 243,816 (3,437,742)
Interest income, net 1,273,009 (4,638) 1,268,371
------------ ---------- -----------
Income (loss) before income taxes (2,408,549) 239,178 (2,169,371)
Income tax expense 17,805 - 17,805
------------ ---------- -----------
Net income (loss) $ (2,426,354) $ 239,178 $(2,187,176)
============ ========== ===========
Net loss per share $ (0.30) $ (0.24)
------------ -----------
Weighted average shares outstanding 8,111,590 9,088,043
------------ -----------
Pro forma adjustments to operations:
none
1
Unaudited pro forma condensed statement of financial position as if the
acquisition had occured September 30, 1996 would be:
Summit C.L. McIntosh
Medical & Associates, Pro Forma Pro Forma
Systems, Inc. Inc. Adjustments Combined
------------- ---- ----------- --------
(Restated)
September 30, 1996:
Current assets $53,319,462 $1,051,030 $54,370,492
Equipment and fixtures, net 2,096,070 205,624 2,301,694
Other assets, net 98,297 5,961 104,258
----------- ---------- -----------
Total assets $55,513,829 $1,262,615 $56,776,444
=========== ========== ===========
Current liabilities $3,226,479 $589,491 $3,815,970
Long-term debt 30,878 - 30,878
Shareholders' equity 52,256,472 673,124 52,929,596
----------- ---------- -----------
Total liabilities and shareholders'
equity $52,287,350 $1,262,615 $56,776,444
=========== ========== ===========
Pro forma adjustments to financial position:
none
2