Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - VANGUARD HEALTH SYSTEMS INC | g21800e8vk.htm |
| EX-99.3 - EX-99.3 - VANGUARD HEALTH SYSTEMS INC | g21800exv99w3.htm |
| EX-99.2 - EX-99.2 - VANGUARD HEALTH SYSTEMS INC | g21800exv99w2.htm |
EXHIBIT 99.1
Item 6. Selected Financial Data.
The following table sets forth our selected historical financial and operating data for, or as
of the end of, each of the five years ended June 30, 2009 (including the predecessor and successor
periods). The selected historical financial data as of and for the combined predecessor and
successor year ended June 30, 2005 and the year ended June 30, 2006 were
derived from our audited consolidated financial statements that have been audited by Ernst & Young
LLP, an independent registered public accounting firm, adjusted for
the retrospective presentation impact of changes in accounting
guidance related to non-controlling interests. The selected historical financial
data as of and for the years ended June 30, 2007, 2008 and
2009 were derived from our audited consolidated financial
statements that have been audited by Ernst & Young LLP, an
independent registered public accounting firm. The operations of
dispositions completed during fiscal 2007 are included in
discontinued operations, net of taxes, for all periods
presented. See “Executive Overview” included in “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.” This table
should be read in conjunction with the consolidated financial statements and notes thereto.
| Successor | |||||||||||||||||||||||||||||
| Predecessor | September | ||||||||||||||||||||||||||||
| July 1, 2004 | 23, 2004 | Combined | |||||||||||||||||||||||||||
| through | through | Basis Year | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
| September | June 30, | Ended June | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||
| 22, 2004 | 2005 | 30, 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||||||
Statement of Operations Data: |
|||||||||||||||||||||||||||||
Total revenues |
$ | 397.9 | $ | 1,639.4 | $ | 2,037.3 | $ | 2,418.6 | $ | 2,580.7 | $ | 2,790.7 | $ | 3,199.7 | |||||||||||||||
Costs and expenses: |
|||||||||||||||||||||||||||||
Salaries and benefits
(includes stock compensation
of $96.7, $0.7,
$97.4, $1.7, $1.2, $2.5 and
$4.4 respectively) |
248.2 | 661.0 | 909.2 | 991.4 | 1,067.9 | 1,152.7 | 1,240.1 | ||||||||||||||||||||||
Health plan claims expense |
55.0 | 182.2 | 237.2 | 270.3 | 297.0 | 328.2 | 525.6 | ||||||||||||||||||||||
Supplies |
63.7 | 273.1 | 336.8 | 394.1 | 421.8 | 434.5 | 456.3 | ||||||||||||||||||||||
Provision for doubtful
accounts |
27.8 | 105.2 | 133.0 | 156.8 | 175.2 | 205.6 | 210.8 | ||||||||||||||||||||||
Other operating expenses |
57.3 | 231.5 | 288.8 | 353.0 | 375.0 | 405.8 | 468.9 | ||||||||||||||||||||||
Depreciation and amortization |
16.0 | 59.7 | 75.7 | 100.3 | 118.6 | 131.0 | 130.6 | ||||||||||||||||||||||
Interest, net |
9.0 | 73.3 | 82.3 | 103.8 | 123.8 | 122.1 | 111.6 | ||||||||||||||||||||||
Debt extinguishment costs |
62.2 | — | 62.2 | 0.1 | — | — | — | ||||||||||||||||||||||
Merger expenses |
23.1 | 0.2 | 23.3 | — | — | — | — | ||||||||||||||||||||||
Impairment loss |
— | — | — | — | 123.8 | — | 6.2 | ||||||||||||||||||||||
Other expenses |
0.4 | 3.2 | 3.6 | 6.5 | 0.2 | 6.5 | 2.7 | ||||||||||||||||||||||
Subtotal |
562.7 | 1,589.4 | 2,152.1 | 2,376.3 | 2,703.3 | 2,786.4 | 3,152.8 | ||||||||||||||||||||||
Income (loss) from continuing
operations before income taxes |
(164.8 | ) | 50.0 | (114.8 | ) | 42.3 | (122.6 | ) | 4.3 | 46.9 | |||||||||||||||||||
Income tax expense (benefit) |
(52.2 | ) | 17.5 | (34.7 | ) | 17.8 | (11.6 | ) | 1.7 | 16.0 | |||||||||||||||||||
Income (loss) from continuing
operations |
(112.6 | ) | 32.5 | (80.1 | ) | 24.5 | (111.0 | ) | 2.6 | 30.9 | |||||||||||||||||||
Income (loss) from discontinued
operations, net of taxes |
1.4 | 0.3 | 1.7 | (9.0 | ) | (19.1 | ) | (0.3 | ) | 0.9 | |||||||||||||||||||
Net income (loss) |
(111.2 | ) | 32.8 | (78.4 | ) | 15.5 | (130.1 | ) | 2.3 | 31.8 | |||||||||||||||||||
Less: Net income attributable to
non-controlling interests |
0.5 | (0.2 | ) | 0.3 | (2.6 | ) | (2.6 | ) | (3.0 | ) | (3.2 | ) | |||||||||||||||||
Net income (loss) attributable
to Vanguard Health Systems, Inc.
stockholders |
(110.7 | ) | 32.6 | (78.1 | ) | 12.9 | (132.7 | ) | (0.7 | ) | 28.6 | ||||||||||||||||||
Preferred dividends |
(1.0 | ) | — | (1.0 | ) | — | — | — | — | ||||||||||||||||||||
Net income (loss) attributable
to Vanguard Health Systems, Inc.
common stockholders |
$ | (111.7 | ) | $ | 32.6 | $ | (79.1 | ) | $ | 12.9 | $ | (132.7 | ) | $ | (0.7 | ) | $ | 28.6 | |||||||||||
Balance Sheet Data: |
|||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | 79.2 | $ | 79.2 | $ | 123.6 | $ | 120.1 | $ | 141.6 | $ | 308.2 | |||||||||||||||||
Assets |
2,471.7 | 2,471.7 | 2,650.5 | 2,538.1 | 2,582.3 | 2,731.1 | |||||||||||||||||||||||
Long-term debt, including
current portion |
1,357.1 | 1,357.1 | 1,519.2 | 1,528.7 | 1,537.5 | 1,551.6 | |||||||||||||||||||||||
Working capital |
77.7 | 77.7 | 193.0 | 156.4 | 217.8 | 251.6 | |||||||||||||||||||||||
Other Financial Data: |
|||||||||||||||||||||||||||||
Capital expenditures |
$ | 27.1 | $ | 197.1 | $ | 224.2 | $ | 275.5 | $ | 164.3 | $ | 121.6 | $ | 132.1 | |||||||||||||||
Cash provided by operating
activities |
78.8 | 123.0 | 203.2 | 152.4 | 125.6 | 176.3 | 313.1 | ||||||||||||||||||||||
Cash used in investing activities |
(50.0 | ) | (274.3 | ) | (324.3 | ) | (245.4 | ) | (118.5 | ) | (143.8 | ) | (133.6 | ) | |||||||||||||||
Cash provided by (used in)
financing activities |
(20.0 | ) | 171.6 | 150.2 | 137.4 | (10.6 | ) | (11.0 | ) | (12.9 | ) | ||||||||||||||||||
Operating Data-continuing
operations: (unaudited) |
|||||||||||||||||||||||||||||
Number of hospitals at end of
period |
15 | 15 | 15 | 15 | 15 | ||||||||||||||||||||||||
Number of licensed beds at end
of period (a) |
3,907 | 3,937 | 4,143 | 4,181 | 4,135 | ||||||||||||||||||||||||
Discharges (b) |
147,798 | 162,446 | 166,873 | 169,668 | 167,880 | ||||||||||||||||||||||||
Adjusted discharges — hospitals
(c) |
231,322 | 261,056 | 264,698 | 270,076 | 274,767 | ||||||||||||||||||||||||
| Combined | |||||||||||||||||||||
| Basis Year | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| Ended June | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||
| 30, 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||
Adjusted discharges (d) |
278,255 | 303,696 | 278,820 | 284,680 | 289,997 | ||||||||||||||||
Net revenue per adjusted
discharge – hospitals (e) |
$ | 6,859 | $ | 7,319 | $ | 7,766 | $ | 8,110 | $ | 8,623 | |||||||||||
Net revenue per adjusted
discharge (f) |
$ | 6,817 | $ | 7,353 | $ | 7,690 | $ | 8,059 | $ | 8,517 | |||||||||||
Patient days (g) |
623,333 | 701,307 | 721,832 | 734,838 | 709,952 | ||||||||||||||||
Average length of stay (days) (h) |
4.2 | 4.3 | 4.3 | 4.3 | 4.2 | ||||||||||||||||
Inpatient surgeries (i) |
33,424 | 36,606 | 37,227 | 37,538 | 37,970 | ||||||||||||||||
Outpatient surgeries (j) |
67,944 | 76,437 | 76,606 | 73,339 | 76,378 | ||||||||||||||||
Emergency room visits (k) |
504,172 | 554,250 | 572,946 | 588,246 | 605,729 | ||||||||||||||||
Occupancy rate (l) |
48.5 | % | 49.2 | % | 48.2 | % | 48.0 | % | 47.0 | % | |||||||||||
Average daily census (m) |
1,708 | 1,921 | 1,978 | 2,008 | 1,945 | ||||||||||||||||
Member lives (n) |
146,700 | 146,200 | 145,600 | 149,600 | 218,700 | ||||||||||||||||
Health plan claims expense
percentage (o) |
71.1 | % | 72.1 | % | 74.0 | % | 72.9 | % | 77.5 | % | |||||||||||
| (a) | Licensed beds are those beds for which a facility has been granted approval to operate from the applicable state licensing agency. | |
| (b) | Discharges represent the total number of patients discharged (in the facility for a period in excess of 23 hours) from our hospitals and is used by management and certain investors as a general measure of inpatient volumes. | |
| (c) | Adjusted discharges-hospitals is used by management and certain investors as a general measure of combined hospital inpatient and outpatient volumes. Adjusted discharges-hospitals is computed by multiplying discharges by the sum of gross hospital inpatient and gross hospital outpatient revenues and then dividing the result by gross hospital inpatient revenues. This computation enables management to assess hospital volumes by a combined measure of hospital inpatient and outpatient utilization. | |
| (d) | Adjusted discharges is used by management and certain investors as a general measure of consolidated inpatient and outpatient volumes. Adjusted discharges is computed by multiplying discharges by the sum of gross inpatient revenues and gross outpatient revenues and then dividing the result by gross inpatient revenues. | |
| (e) | Net revenue per adjusted discharge-hospitals is calculated by dividing hospital net patient revenues by adjusted discharges-hospitals and measures the average net payment expected to be received for a patient’s stay in the hospital. | |
| (f) | Net revenue per adjusted discharge is calculated by dividing net patient revenues by adjusted discharges and measures the average net payment expected to be received for an episode of service provided to a patient. | |
| (g) | Patient days represent the number of days (calculated as overnight stays) our beds were occupied by patients during the periods. | |
| (h) | Average length of stay represents the average number of days an admitted patient stays in our hospitals. | |
| (i) | Inpatient surgeries represent the number of surgeries performed in our hospitals where overnight stays are necessary. | |
| (j) | Outpatient surgeries represent the number of surgeries performed at hospitals or ambulatory surgery centers on an outpatient basis (patient overnight stay not necessary). | |
| (k) | Emergency room visits represent the number of patient visits to a hospital or freestanding emergency room where treatment is received, regardless of whether an overnight stay is subsequently required. | |
| (l) | Occupancy rate represents the percentage of hospital licensed beds occupied by patients. Occupancy rate provides a measure of the utilization of inpatient rooms. | |
| (m) | Average daily census represents the average number of patients in our hospitals each day during our ownership. | |
| (n) | Member lives represent the total number of enrollees in PHP, AAHP and MHP as of the end of the respective period. | |
| (o) | Health plan claims expense percentage is calculated by dividing health plan claims expense by premium revenues. |
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