AHIC I don't remember anyone posting this today:
February 14, 2000
AMERICAN HEALTHCHOICE INC /NY/ (AHIC)
Quarterly Report (SEC form 10QSB)
Management's Discussion and Analysis or Plan of Operation
Results of Operations
The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and Notes thereto, and is qualified in its entirety by
the foregoing and by other more detailed financial information appearing elsewhere.
Three Months Ended December 31, 1999 Compared to Three Months Ended December 31, 1998
Net Patient Revenues. For the three months ended December 31, 1999, net patient revenues decreased from $1,531,000 for the same period in 1998 to
$1,015,000 in 1999. Approximately $424,000 of the decrease was attributable to net patient revenue for the Norcross clinic in the 1998 period, which was sold as
of December 31, 1998.
Compensation and Benefits. For the three months ended December 31, 1999, compensation and benefits decreased from $1,201,000 in 1998 to $641,000 in
1999. Approximately $400,000 of the decrease was attributable to compensation and benefits for the Norcross clinic in the 1998 period. The remainder of the
decrease was due to fewer clinic employees and salary reductions taken by clinic physicians and executive officers in 1999.
General and Administrative. For the three months ended December 31, 1999, general and administrative decreased from $409,000 for fiscal year 1998 to
$254,000 in 1999. Approximately $125,000 of the decrease was attributable to general and administrative expenses for the Norcross clinic in the 1998 period. The
remainder is due to overall reductions at the clinics and corporate office.
Rent. For the three months ended December 31, 1999, rent decreased $77,000 from $156,000 in 1998 to $79,000 in 1999. The decrease was primarily due to
rent for the Norcross clinic in the 1998 period.
Through the closure of unprofitable clinics and an overall reduction in operating expenses, the Company has achieved profitability for the three months ended
December 31, 1999 compared to a loss of $300,000 for the three months ended December 31, 1998.
Liquidity and Capital Resources
For the three months ended December 31, 1999, net cash used in operating activities was $5,000 compared to $311,000 for the three months ended December 31,
1998. The decrease of $306,000 is primarily attributable to net income of $27,000 in 1999 compared to a $300,000 loss in the 1998 period. During the last six
months of fiscal year 1999, the Company was able to reduce its monthly cash loss to approximately $40,000 and had identified profitable acquisitions, which would
have been funded by an equity infusion. However, the Company was unable to restructure terms of the September 1997 and August 1998 debenture agreements,
which would have allowed for new funding under terms satisfactory to the Company and the prospective seller. Also, in early October 1999, the Company received
an adverse ruling on a lawsuit. As a result of these two events, the Board of Directors elected on October 19,1999 to file individual voluntary bankruptcy petitions
under Chapter 11 of the United States Bankruptcy Code for American HealthChoice, Inc., the parent company, and its subsidiary, AHC Physicians Corporation
Inc., the owner of the Georgia medical clinics. The Company has prepared a Disclosure Statement and Plan of Reorganization, which it intends to file on February
15, 2000.
Since the bankruptcy petition filing on October 19, 1999, the Company has been operating under a cash receipts and disbursement budget approved by the
Bankruptcy Court. Cash receipts from collections of accounts receivable should be sufficient to satisfy all obligations incurred since the filing date.
Forward-Looking Information
This report contains certain forward-looking statements and information relating to the Company that are based on the beliefs of the Company's management as well
as assumptions made by and information currently available to the Company's management. When used in the report, words such as "anticipate," "believe,"
"estimate," "expect," "intend," "should," and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such
statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties, and assumptions relating to the
operations, results of operations, liquidity, and growth strategy of the Company, including competitive factors and pricing pressures, changes in legal and regulatory
requirements, interest rate fluctuations, and general economic conditions, as well as other factors described in this report. Should one or more of the risks materialize,
or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as anticipated, believed, estimated,
expected, or intended.
|
