The Company leases approximately 2,700 square feet of space at its executive office in Jericho, New York under a lease which expires in November 1998. The Company maintains its National Operations Center for its hospital bill audit operations in Dallas, Texas. The Dallas facility originally consisted of 7,200 square feet of space on a lease which expires in July 1998. During March 1996, the Company amended its lease to reduce its total space requirements to approximately 4,500 square feet. Monthly lease payments were decreased
For the fiscal year ended March 31, 1996 ("Fiscal 1996"), consolidated revenues were $5,239,848, down 2.3 % from consolidated revenues of $5,366,130 during the fiscal year ended March 31, 1995 ("Fiscal 1995"). This shortfall follows a decline in consolidated revenues of 7.7% in Fiscal 1995 from the $5,811,928 reported during the fiscal year ended March 31, 1994 ("Fiscal 1994").
During Fiscal 1996, revenue from vocational rehabilitation services totaled $1,293,166, a marginal decrease from the $1,304,212 reported for Fiscal 1995. The majority of the Company's vocational rehabilitation services are provided to the Washington State Department of Labor & Industries. Although referrals for services from this client have decreased, the Company has maintained a consistent market share in its two contract regions. Management has focused its marketing plans on self-insured corporations as a source of new business and as a means of decreasing its dependence on the State contracts. From September 15, 1993, the acquisition date, through March 31, 1994, revenues generated by vocational rehabilitation services amounted to $748,794.
related access fees. The cost of evaluator fees during Fiscal 1995 had increased to 37.7% of related revenues from 34.1% as a percentage of HBA revenues in Fiscal 1994 when these new services were being introduced. For Fiscal 1996, the cost of services for vocational rehabilitation services was 44.8% as a percentage of related revenues, compared to 48.8% of related revenues during Fiscal 1995. This cost consists primarily of wages paid to the Company's vocational rehabilitation consultants.
Interest income increased to $338,517 during Fiscal 1996, as compared to interest income of $272,331 and $178,606 for Fiscal 1995 and Fiscal 1994, respectively. This increase was a direct result of the increase in available cash balances combined with a rise in prevailing market rates. During Fiscal 1996 and 1995, the Company realized gains on the sales of marketable securities of $470,652 and $50,988, respectively. Miscellaneous income, representing ancillary revenues, amounted to $91,277 in Fiscal 1996, as compared with ancillary revenues of $95,282 for Fiscal 1995 and $84,691 for Fiscal 1994.
The effective income tax rate declined from 44% in Fiscal 1995 to 38% in Fiscal
Net cash provided by investing activities of $1,233,774 during the fiscal year ended March 31, 1996 consisted predominantly of $1,269,435 of proceeds from the sales of marketable securities, net of $26,893 of additional marketable securities purchases.
The Company has intensified its review of strategic alternatives for maximizing shareholder value, focusing upon acquisitions and/or the dispositions of certain assets. Potential acquisitions will be evaluated based on their merits within its current line of business, as well as other fields. The Company believes that it has sufficient cash resources and working capital to meet its capital resource requirements for the foreseeable future.