UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
ý QUARTERLY REPORT PURSUANT TO
SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
for the quarterly period ended March 31, 2004
or
o TRANSITION REPORT PURSUANT TO
SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 000-30406
HealthTronics Surgical Services, Inc.
(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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
12,384,000 Shares of No Par Value Common Stock as of April 30, 2004
HEALTHTRONICS SURGICAL SERVICES, INC.
INDEX TO FORM 10-Q
2
Part 1. Financial Information
HealthTronics Surgical Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000’s omitted)
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March 31, |
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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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$ |
10,399 |
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$ |
9,040 |
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Trade accounts receivable, less allowance for doubtful accounts of $1,743 and $1,669 at March 31, 2004 and December 31, 2003, respectively |
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15,831 |
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14,484 |
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Other receivables |
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706 |
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— |
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Inventory |
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13,550 |
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7,819 |
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Prepaid expenses and other current assets |
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2,667 |
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1,224 |
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Deferred income taxes |
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800 |
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774 |
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Total current assets |
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43,953 |
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33,341 |
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Property and equipment, at cost: |
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Land |
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349 |
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349 |
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Building and leasehold improvements |
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2,039 |
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1,182 |
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Medical devices placed in service |
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25,872 |
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24,420 |
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Office equipment, furniture and fixtures |
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1,895 |
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1,646 |
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Vehicles and accessories |
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3,605 |
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3,604 |
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33,760 |
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31,201 |
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Less accumulated depreciation |
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(11,076 |
) |
(11,768 |
) |
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Net property and equipment |
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22,684 |
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19,433 |
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Investments in unconsolidated entities |
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2,265 |
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2,207 |
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Goodwill |
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59,613 |
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48,317 |
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Other assets |
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3,333 |
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3,585 |
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Total assets |
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$ |
131,848 |
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$ |
106,883 |
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3
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March 31, |
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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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$ |
6,375 |
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$ |
5,035 |
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Income taxes payable |
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1,517 |
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1,605 |
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Other accrued expenses |
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9,840 |
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5,507 |
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Deferred profit on service contracts |
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542 |
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375 |
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Short-term borrowings |
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22,054 |
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11,714 |
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Current portion of capital lease obligations |
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278 |
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281 |
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Current portion of long-term debt |
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1,227 |
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5,906 |
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Total current liabilities |
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41,833 |
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30,423 |
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Deferred profit on medical device sales to related parties (subject to debt guarantees) |
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256 |
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248 |
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Noncurrent deferred income taxes |
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623 |
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669 |
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Capital lease obligations, less current portion |
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362 |
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409 |
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Long-term debt, less current portion |
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9,382 |
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4,718 |
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Minority interest in consolidated subsidiaries |
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30,309 |
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28,085 |
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Other liabilities |
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3,237 |
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1,953 |
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Total liabilities |
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86,002 |
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66,505 |
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Shareholders’ equity: |
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Common stock – no par value, voting: |
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Authorized – 30,000 shares at March 31, 2004 and December 31, 2003; Issued – 12,386 and 11,639 shares at March 31, 2004 and December 31, 2003, respectively; Outstanding – 12,384 and 11,584 at March 31, 2004 and December 31, 2003, respectively |
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24,120 |
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19,034 |
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Accumulated other comprehensive expense |
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— |
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(32 |
) |
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Retained earnings |
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21,726 |
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21,376 |
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Total shareholders’ equity |
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45,846 |
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40,378 |
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Total liabilities and shareholders’ equity |
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$ |
131,848 |
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$ |
106,883 |
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See accompanying notes.
4
HealthTronics Surgical Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
(000’s omitted except per share information)
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Three months ended March 31, |
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2004 |
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2003 |
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Net revenue |
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$ |
23,740 |
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$ |
20,888 |
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Cost of devices, service parts and consumables |
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4,974 |
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4,260 |
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Salaries, general and administrative expenses |
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11,351 |
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9,580 |
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Depreciation and amortization |
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1,562 |
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1,380 |
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