UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
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ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR |
for the quarterly period ended June 30, 2002
or
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR |
Commission file number 000-30406
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HealthTronics Surgical Services, Inc. |
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(Exact name of registrant as specified in its charter) |
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Georgia |
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58-2210668 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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1841 West Oak Parkway, Suite A |
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30062 |
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(Address of principal executive offices) |
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(Zip Code) |
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(770) 419-0691 |
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(Registrant’s telephone number, including area code) |
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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 ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
11,205,904 Shares of No Par Value Common Stock as of July 31, 2002
HEALTHTRONICS SURGICAL SERVICES, INC.
INDEX TO FORM 10-Q
2
HealthTronics Surgical Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
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June 30, |
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December
31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
10,402,936 |
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$ |
9,522,501 |
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Trade accounts receivable, less allowance for doubtful accounts of $895,547 and $1,094,819 at June 30, 2002 and December 31, 2001, respectively |
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15,790,490 |
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14,049,606 |
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Other receivables |
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1,814,974 |
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3,203,349 |
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Inventory |
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6,919,681 |
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4,720,013 |
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Prepaid expenses and other current assets |
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682,175 |
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618,523 |
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Assets held for sale |
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7,129,602 |
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7,265,284 |
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Total current assets |
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42,739,858 |
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39,379,276 |
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Property and equipment, at cost: |
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Land |
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349,300 |
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349,300 |
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Building and leasehold improvements |
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881,832 |
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738,519 |
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Medical devices placed in service |
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20,223,881 |
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18,544,489 |
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Office equipment, furniture and fixtures |
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1,236,730 |
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897,999 |
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Vehicles and accessories |
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2,712,653 |
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2,913,437 |
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25,404,396 |
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23,443,744 |
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Less accumulated depreciation |
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(7,525,098 |
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(5,279,276 |
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Net property and equipment |
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17,879,298 |
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18,164,468 |
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Partnership investments |
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222,030 |
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433,482 |
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Goodwill (net of accumulated amortization of $860,156 at June 30, 2002 and December 31, 2001) |
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41,517,947 |
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41,269,111 |
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Patent license (net of accumulated amortization of $69,984 and $64,986 at June 30, 2002 and December 31, 2001, respectively) |
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30,016 |
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35,014 |
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Other assets |
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2,643,306 |
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2,287,440 |
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Total assets |
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$ |
105,032,455 |
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$ |
101,568,791 |
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3
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June 30, |
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December
31, |
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(Unaudited) |
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Liabilities and shareholders’ equity |
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Current liabilities: |
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Trade accounts payable |
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$ |
3,560,725 |
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$ |
3,170,960 |
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Customer deposits |
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66,879 |
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121,600 |
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Income taxes payable |
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2,033,979 |
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512,379 |
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Other accrued expenses |
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4,437,155 |
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3,781,701 |
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Deferred profit on service contracts and sales of partnership interests |
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685,904 |
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1,065,127 |
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Short-term borrowings |
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9,000,000 |
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11,400,000 |
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Current portion of capital lease obligations |
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623,560 |
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481,269 |
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Current portion of long-term debt |
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3,680,616 |
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3,704,665 |
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Liabilities held for sale |
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4,927,881 |
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4,922,984 |
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Total current liabilities |
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29,016,699 |
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29,160,685 |
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Deferred profit on medical device sales to related parties subject to debt guarantees |
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461,447 |
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411,267 |
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Capital lease obligations, less current portion |
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2,000,499 |
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1,104,853 |
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Long-term debt, less current portion |
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33,051,460 |
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34,511,585 |
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Minority interest |
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12,636,272 |
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12,125,670 |
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Other liabilities |
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2,222,493 |
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2,379,030 |
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Total liabilities |
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79,388,870 |
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79,693,090 |
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Shareholders’ equity: |
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Common stock – no par value, voting: |
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Authorized – 30,000,000 shares at June 30, 2002 and December 31, 2001; |
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Issued – 11,185,070 and 11,103,737 shares at June 30, 2002 and December 31, 2001, respectively; |
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Outstanding – 11,132,070 and 11,050,737 at June 30, 2002 and December 31, 2001, respectively |
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15,060,734 |
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14,303,581 |
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Accumulated other comprehensive expense |
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(140,349 |
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— |
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Retained earnings |
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10,723,200 |
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7,572,120 |
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Total shareholders’ equity |
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25,643,585 |
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21,875,701 |
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Total liabilities and shareholders’ equity |
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$ |
105,032,455 |
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$ |
101,568,791 |
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See accompanying notes.
4
HealthTronics Surgical Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
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Three months ended June 30, |
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Six months ended June 30, |
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2002 |
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2001 |
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2002 |
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2001 |
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