UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(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, 2004
[ ] 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 0-28456
METROPOLITAN HEALTH NETWORKS, INC.
(Exact name of registrant as specified in its charter)
Florida
65-0635748
(State or other jurisdiction of
(I.R.S. Employer
Incorporation or organization)
Identification No.)
250 Australian Avenue, Suite 400, West Palm Beach, FL
33401
(Address of principal executive office)
(Zip Code)
(561) 805-8500
(Registrant’s telephone number, including area code)
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 is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)
Yes [ ]
No [X]
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding as of October 31, 2004
Common Stock par value $.001
46,857,505
#
Metropolitan Health Networks, Inc.
Index
Part I. | FINANCIAL INFORMATION | Page |
Item 1. | Condensed Consolidated Financial Statements (Unaudited): | |
Condensed Consolidated Balance Sheets | ||
as of September 30, 2004 and December 31, 2003 | 3 | |
Condensed Consolidated Statements of | ||
Operations for the Three and Nine Months | ||
Ended September 30, 2004 and 2003 | 4 | |
Condensed Consolidated Statements of | ||
Cash Flows for the Nine Months | ||
Ended September 30, 2004 and 2003 | 5 | |
Notes to Condensed Consolidated | ||
Financial Statements | 6-11 | |
Item 2. | Management’s Discussion and Analysis of | |
Financial Condition and Results of | ||
Operations | 12-19 | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 20 |
Item 4. | Controls and Procedures | 20 |
PART II. | OTHER INFORMATION | |
Item 1. | Legal Proceedings | 21 |
Item 2. | Changes in Securities and Use of Proceeds | 21 |
Item 3. | Default Upon Senior Securities | 21 |
Item 4. | Submission of Matters to a Vote of Security | |
Holders | 21 | |
Item 5. | Other Information | 21 |
Item 6. | Exhibits and Reports on Form 8-K | 21-22 |
SIGNATURES | 23 | |
#
METROPOLITAN HEALTH NETWORKS, INC. AND SUBSIDIARIES | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
September 30, 2004 | December 31, 2003 | ||||
ASSETS | (Unaudited) | (Audited) | |||
CURRENT ASSETS | |||||
Cash and equivalents | $ 8,554,541 | $ 2,176,204 | |||
Accounts receivable, net of allowance | 2,795,243 | 2,138,690 | |||
Inventory | 285,709 | 304,248 | |||
Other current assets | 819,759 | 833,112 | |||
TOTAL CURRENT ASSETS | 12,455,252 | 5,452,254 | |||
CERTIFICATES OF DEPOSIT - restricted | 1,000,000 | 1,000,000 | |||
PROPERTY AND EQUIPMENT, net | 699,172 | 659,682 | |||
GOODWILL, net | 1,992,133 | 1,992,133 | |||
OTHER ASSETS | 127,685 | 119,660 | |||
TOTAL ASSETS | $ 16,274,242 | $ 9,223,729 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIENCY IN ASSETS) | |||||
CURRENT LIABILITIES | |||||
Advances from HMO | $ - | $ 164,536 | |||
Accounts payable | 378,215 | 1,756,347 | |||
Accrued expenses | 1,823,978 | 1,413,195 | |||
Current maturities of capital lease obligations | 7,640 | 104,315 | |||
Current maturities of long-term debt | 600,000 | 975,169 | |||
Payroll taxes payable | 4,717 | 3,408,736 | |||
TOTAL CURRENT LIABILITIES | 2,814,550 | 7,822,298 | |||
CAPITAL LEASE OBLIGATIONS | - | 3,092 | |||
LONG-TERM DEBT | 400,000 | 1,901,000 | |||
TOTAL LIABILITIES | 3,214,550 | 9,726,390 | |||
COMMITMENTS AND CONTINGENCIES | |||||
STOCKHOLDERS' EQUITY/(DEFICIENCY IN ASSETS) | |||||
Preferred stock, par value $.001 per share; stated value $100 per share; | |||||
10,000,000 shares authorized; 5,000 issued and outstanding | 500,000 | 500,000 | |||
Common stock, par value $.001 per share; 80,000,000 shares authorized; | |||||
46,808,993 and 38,527,699 issued and outstanding, respectively | 46,809 | 38,527 | |||
Additional paid-in capital | 35,901,738 | 31,343,887 | |||
Accumulated deficit | (23,269,504) | (32,238,333) | |||
Common stock issued for services to be rendered | (119,351) | (146,742) | |||
TOTAL STOCKHOLDERS' EQUITY/(DEFICIENCY IN ASSETS) | 13,059,692 | (502,661) | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIENCY IN ASSETS) | $ 16,274,242 | $ 9,223,729 | |||
See accompanying notes - unaudited | |||||
#
METROPOLITAN HEALTH NETWORKS, INC. AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
For the nine months ended September 30, | For the three months ended September 30, | |||||||||
2004 | 2003 | 2004 | 2003 | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
REVENUES | $ 117,189,228 | $ 108,422,050 | $ 40,091,999 | $ 35,680,129 | ||||||
EXPENSES | ||||||||||
Direct medical costs | 95,934,070 | 91,802,409 | 32,155,171 | 29,994,259 | ||||||
Payroll, payroll taxes and benefits | 6,731,202 | 5,516,682 | 2,399,245 | 1,803,664 | ||||||
Medical supplies | 1,132,488 | 1,477,204 | 269,989 | 585,804 | ||||||
Depreciation and amortization | 283,698 | 517,176 | 70,429 | 176,549 | ||||||
Rent and leases | 856,305 | 744,861 | 292,190 | 263,232 | ||||||
Consulting expense | 444,517 | 1,053,648 | 195,959 | 328,813 | ||||||
General and administrative | 2,371,373 | 2,025,101 | 998,745 | 559,486 | ||||||
TOTAL EXPENSES | 107,753,653 | 103,137,081 | 36,381,728 | 33,711,807 | ||||||
INCOME BEFORE OTHER INCOME (EXPENSE) | 9,435,575 | 5,284,969 | 3,710,271 | 1,968,322 | ||||||
OTHER INCOME (EXPENSE): | ||||||||||
Interest and penalty expense | (301,843) |
| ||||||||