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| 8-K - IASIS HEALTHCARE LLC 8-K - IASIS Healthcare LLC | a50923051.htm |
Exhibit 99.1
IASIS Healthcare Announces Third Quarter 2014 Results
FRANKLIN, Tenn.--(BUSINESS WIRE)--August 12, 2014--IASIS Healthcare® LLC (“IASIS” or the “Company”) today announced financial and operating results for the fiscal third quarter and nine months ended June 30, 2014.
Key Financial & Operating Results
Third Quarter Fiscal 2014
Net revenue for the third quarter totaled $673.2 million, an increase of 12.4% compared to $599.1 million in the prior year quarter. Adjusted EBITDAR, which excludes rent expense associated with the sale-leaseback of certain hospital real estate, for the third quarter totaled $70.4 million, compared to $68.5 million in the prior year quarter. Included in adjusted EBITDAR for the third quarter was $2.0 million in start-up related costs associated with Health Choice’s new third-party administration and management services organization businesses. Excluding these start-up related costs, adjusted EBITDAR would have increased 5.8% over the prior year quarter.
In the third quarter, adjusted admissions increased 1.9% and admissions decreased 3.1%, each compared to the prior year quarter. Net patient revenue per adjusted admission in the third quarter increased 1.3% compared to the prior year quarter.
In Health Choice’s operations for the third quarter, premium revenue excluding the impact of the new health insurer fee revenue (“HIF”) increased 40.4% compared to the prior year quarter, and total lives enrolled across all health plan product lines increased 14.5% to 213,032, compared to 186,111 in the prior year quarter.
Cash flows provided by continuing operations for the quarter ended June 30, 2014, totaled $22.5 million, compared to cash flows used in continuing operations of $14.6 million in the prior year quarter.
“We are pleased with these solid financial results, led by continued improvements and growth in our core operations and new investment growth in our Health Choice segment," said IASIS Healthcare President and Chief Executive Officer Carl Whitmer. “Improved margins in our major markets underscore early benefits of improving economic fundamentals, including positive results from Medicaid expansion for Health Choice and our Arizona hospitals. We continue to be intently focused on integrating our strong provider networks with Health Choice’s proven managed care solutions to further enhance our longstanding ability to provide high quality, affordable care to the communities we serve.”
Year-to-Date Fiscal 2014
Net revenue for the first nine months of fiscal 2014 totaled $1.94 billion, an increase of 8.0% compared to $1.79 billion in the prior year period. Adjusted EBITDAR for the first nine months of fiscal 2014, totaled $204.7 million, compared to $195.8 million in the prior year period. Adjusted EBITDAR for the first nine months of fiscal 2014 includes $3.0 million in start-up related costs at Health Choice and $3.5 million of compensation expense associated with a special bonus paid to certain members of the Company’s leadership team in recognition of the completion of certain strategic initiatives. Additionally, the prior year period was negatively impacted by $6.1 million of changes in reimbursement estimates associated with the Company’s Houston market.
For the first nine months of fiscal 2014, adjusted admissions increased 0.7% and admissions decreased 3.4%, each compared to the prior year period. Net patient revenue per adjusted admission for the first nine months of fiscal 2014 increased 2.5% compared to the prior year period.
Cash flows used in continuing operations for the first nine months of fiscal 2014 totaled $3.4 million, compared to cash flows provided by continuing operations of $8.9 million in the prior year period. Cash flows used in operations for the first nine months of fiscal 2014 were impacted by the payment of $22.3 million in income taxes and other transaction costs, as well as additional rent payments of $16.9 million, both associated with the Company’s recent sale-leaseback of certain hospital real estate, and the continued delay of certain supplemental and other payments from the states of Texas and Arizona, most of which is expected to be collected in the fourth fiscal quarter of 2014 and first fiscal quarter of 2015.
Conference Call
A listen-only simulcast and 30-day replay of IASIS’ third quarter 2014 conference call will be available by clicking the “For Investors” link on the Company’s Web site at www.iasishealthcare.com beginning at 11:00 a.m. Eastern Time on August 12, 2014. A copy of this press release will also be available on the Company’s Web site.
IASIS Healthcare, located in Franklin, Tennessee, is a leading provider and manager of high-quality, affordable healthcare services in urban and suburban markets. With total annual net revenue of approximately $2.5 billion, IASIS owns and operates 16 acute care hospitals, one behavioral health hospital, several outpatient service facilities, 137 physician clinics, and Health Choice, a provider-owned, managed care organization and insurer delivering healthcare services to over 266,000 members through multiple health plans, integrated delivery systems and managed care solutions. IASIS offers a variety of access points for convenient patient care in numerous regions across the U.S., including: Salt Lake City, Utah; Phoenix, Arizona; five cities in Texas, including Houston and San Antonio; Las Vegas, Nevada; and West Monroe, Louisiana. For more information on IASIS, please visit the Company’s Web site at www.iasishealthcare.com.
Some of the statements we make in this press release are forward-looking within the meaning of the federal securities laws, which are intended to be covered by the safe harbors created thereby. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations including, but not limited to, future financial and operating results, the Company’s plans, objectives, expectations and other statements that are not historical facts. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results in future periods to differ materially from those anticipated in the forward-looking statements. These risk factors and uncertainties are more fully described in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013, and other filings with the Securities and Exchange Commission.
Although we believe that the assumptions underlying the forward-looking statements contained in this press release are reasonable, any of these assumptions could prove to be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, you should not regard the inclusion of such information as a representation by the Company or any other person that our objectives and plans will be achieved. We undertake no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
Adjusted EBITDAR represents adjusted EBITDA before rent expense associated with the sale-leaseback of certain hospital real estate. Adjusted EBITDA represents net earnings (loss) from continuing operations before interest expense, income tax expense, depreciation and amortization, stock-based compensation and related expenses, gain on disposal of assets and management fees. Management fees represent monitoring and advisory fees paid to TPG, the Company’s majority financial sponsor, and certain other members of IASIS Investment LLC. Management routinely calculates and communicates adjusted EBITDA and believes that it is useful to investors because it is commonly used as an analytical indicator within the healthcare industry to evaluate hospital performance, allocate resources and measure leverage capacity and debt service ability. In addition, the Company uses adjusted EBITDA as a measure of performance for its business segments and for incentive compensation purposes. Neither adjusted EBITDAR nor adjusted EBITDA should be considered as a measure of financial performance under generally accepted accounting principles, and the items excluded from such EBITDAR and EBITDA measures are significant components in understanding and assessing financial performance. Neither EBITDAR nor EBITDA measures should be considered in isolation or as an alternative to net earnings, cash flows generated by operating, investing, or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Such EBITDAR and EBITDA measures may not be comparable to similarly titled measures of other companies. A table describing adjusted EBITDAR and adjusted EBITDA and reconciling net earnings (loss) from continuing operations to such EBITDAR and EBITDA measures is included in this press release in the attached Supplemental Consolidated Statements of Operations Information.
|
IASIS HEALTHCARE LLC Consolidated Statements of Operations (Unaudited) (in thousands) |
||||||||||||||||
|
Quarter Ended
June 30, |
Nine Months Ended
June 30, |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net revenue | ||||||||||||||||
|
Acute care revenue before provision for bad debts |
$ 556,318 | $ 555,413 | $ 1,692,779 | $ 1,636,836 | ||||||||||||
|
Less: Provision for bad debts |
(83,437 | ) | (96,090 | ) | (281,931 | ) | (267,014 | ) | ||||||||
| Acute care revenue | 472,881 | 459,323 | 1,410,848 | 1,369,822 | ||||||||||||
| Premium revenue | 200,281 | 139,804 | 524,995 | 422,059 | ||||||||||||
| Net revenue | 673,162 | 599,127 | 1,935,843 | 1,791,881 | ||||||||||||
| Costs and expenses | ||||||||||||||||
| Salaries and benefits (includes stock-based compensation of $4,442, $947, $8,796 and $2,946, respectively) | 234,546 | 219,896 | 701,983 | 670,286 | ||||||||||||
| Supplies | 80,411 | 79,462 | 243,437 | 240,724 | ||||||||||||
| Medical claims | 165,943 | 116,640 | 436,754 | 348,556 | ||||||||||||
| Rentals and leases | 18,796 | 13,992 | 56,429 | 40,635 | ||||||||||||
| Other operating expenses | 114,933 | 106,456 | 325,012 | 309,987 | ||||||||||||
| Medicare and Medicaid EHR incentives | (2,790 | ) | (4,827 | ) | (10,233 | ) | (11,209 | ) | ||||||||
| Interest expense, net | 32,275 | 32,771 | 98,325 | 99,987 | ||||||||||||
| Depreciation and amortization | 23,276 | 24,492 | 71,860 | 72,606 | ||||||||||||
|
Management fees |
1,250 | 1,250 | 3,750 | 3,750 | ||||||||||||
| Total costs and expenses | 668,640 | 590,132 | 1,927,317 | 1,775,322 | ||||||||||||
|
Earnings from continuing operations before gain on disposal of assets and income taxes |
4,522 | 8,995 | 8,526 | 16,559 | ||||||||||||
| Gain on disposal of assets, net | 332 | 481 | 1,100 | 649 | ||||||||||||
|
Earnings from continuing operations before income taxes |
4,854 | 9,476 | 9,626 | 17,208 | ||||||||||||
| Income tax expense | 6,331 | 3,850 | 10,198 | 8,016 | ||||||||||||
|
Net earnings (loss) from continuing operations |
(1,477 | ) | 5,626 | (572 | ) | 9,192 | ||||||||||
| Earnings (loss) from discontinued operations, net of income taxes | (2,847 | ) | (531 | ) | 1,821 | 849 | ||||||||||
| Net earnings (loss) | (4,324 | ) | 5,095 | 1,249 | 10,041 | |||||||||||
|
Net earnings attributable to non-controlling interests |
(2,453 | ) | (1,941 | ) | (8,857 | ) | (3,189 | ) | ||||||||
|
Net earnings (loss) attributable to
IASIS Healthcare LLC |
$ (6,777 | ) | $ 3,154 | $ (7,608 | ) | $ 6,852 | ||||||||||
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IASIS HEALTHCARE LLC Consolidated Balance Sheets (Unaudited) (in thousands) |
||||||
|
June 30,
2014 |
Sept. 30,
2013 |
|||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ 317,643 | $ 438,131 | ||||
| Accounts receivable, net | 336,649 | 371,006 | ||||
| Inventories | 58,282 | 57,781 | ||||
| Deferred income taxes | 15,491 | 26,096 | ||||
| Prepaid expenses and other current assets | 181,224 | 126,412 | ||||
| Assets held for sale | – | 119,141 | ||||
| Total current assets | 909,289 | 1,138,567 | ||||
| Property and equipment, net | 843,138 | 833,169 | ||||
| Goodwill | 815,585 | 816,410 | ||||
| Other intangible assets, net | 23,497 | 25,957 | ||||
| Other assets, net | 60,445 | 66,162 | ||||
| Total assets | $ 2,651,954 | $ 2,880,265 | ||||
| LIABILITIES AND EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ 119,355 | $ 129,542 | ||||
| Salaries and benefits payable | 53,295 | 62,884 | ||||
| Accrued interest payable | 9,682 | 27,519 | ||||
| Medical claims payable | 69,108 | 57,514 | ||||
| Other accrued expenses and other current liabilities | 61,308 | 92,553 | ||||
| Current portion of long-term debt and capital lease obligations | 13,180 | 13,221 | ||||
| Advance from divestiture | – | 144,803 | ||||
| Liabilities held for sale | – | 3,208 | ||||
| Total current liabilities | 325,928 | 531,244 | ||||
| Long-term debt and capital lease obligations | 1,843,788 | 1,852,822 | ||||
| Deferred income taxes | 114,460 | 115,592 | ||||
| Other long-term liabilities | 117,482 | 123,120 | ||||
| Non-controlling interests with redemption rights | 108,325 | 105,464 | ||||
| Equity | ||||||
| Member’s equity | 132,263 | 142,262 | ||||
| Non-controlling interests | 9,708 | 9,761 | ||||
| Total equity | 141,971 | 152,023 | ||||
| Total liabilities and equity | $ 2,651,954 | $ 2,880,265 | ||||
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IASIS HEALTHCARE LLC Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
||||||||||
|
Nine Months Ended
June 30, |
||||||||||
| 2014 | 2013 | |||||||||
| Cash flows from operating activities | ||||||||||
| Net earnings | $ | 1,249 | $ | 10,041 | ||||||
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
||||||||||
| Depreciation and amortization | 71,860 | 72,606 | ||||||||
| Amortization of loan costs | 5,559 | 5,760 | ||||||||
| Change in physician minimum revenue guarantees | 2,266 | 2,718 | ||||||||
| Amortization of deferred gain from sale-leaseback | (1,872 | ) | – | |||||||
| Stock-based compensation | 8,796 | 2,946 | ||||||||
| Deferred income taxes | (1,934 | ) | 16,338 | |||||||
| Income tax benefit from exercise of employee stock options | – | 16 | ||||||||
| Income tax benefit from parent company | 9 | 103 | ||||||||
| Gain on disposal of assets, net | (1,100 | ) | (649 | ) | ||||||
| Earnings from discontinued operations, net | (1,821 | ) | (849 | ) | ||||||
|
Changes in operating assets and liabilities, net of the effect of acquisitions and dispositions: |
||||||||||
| Accounts receivable, net | (4,544 | ) | (22,880 | ) | ||||||
| Inventories, prepaid expenses and other current assets | (41,570 | ) | (21,628 | ) | ||||||
| Accounts payable, other accrued expenses and other accrued liabilities | (18,011 | ) | (55,578 | ) | ||||||
|
Income taxes and other transaction costs payable related to sale-leaseback of real estate |
(22,270 | ) | – | |||||||
| Net cash provided by (used in) operating activities – continuing operations | (3,383 | ) | 8,944 | |||||||
| Net cash provided by (used in) operating activities – discontinued operations | (7,161 | ) | 3,967 | |||||||
| Net cash provided by (used in) operating activities | (10,544 | ) | 12,911 | |||||||
| Cash flows from investing activities | ||||||||||
| Purchases of property and equipment | (81,402 | ) | (79,369 | ) | ||||||
| Cash received (paid) for acquisitions, net | (1,038 | ) | 3,584 | |||||||
| Proceeds from sale of assets | 1,510 | 83 | ||||||||
| Change in other assets, net | (173 | ) | (2,467 | ) | ||||||
| Other, net | (3,025 | ) | – | |||||||
| Net cash used in investing activities – continuing operations | (84,128 | ) | (78,169 | ) | ||||||
| Net cash provided by (used in) investing activities – discontinued operations | 28 | (4,318 | ) | |||||||
| Net cash used in investing activities | (84,100 | ) | (82,487 | ) | ||||||
| Cash flows from financing activities | ||||||||||
| Payment of debt and capital lease obligations | (10,184 | ) | (101,765 | ) | ||||||
| Proceeds from revolving credit facilities | – | 147,000 | ||||||||
| Debt financing costs incurred | – | (1,024 | ) | |||||||
| Distributions to non-controlling interests | (13,222 | ) | (5,504 | ) | ||||||
| Cash received for the sale of non-controlling interests | – | 849 | ||||||||
| Cash paid for the repurchase of non-controlling interests | (600 | ) | (1,018 | ) | ||||||
| Other | (1,838 | ) | 12 | |||||||
| Net cash provided by (used in) financing activities | (25,844 | ) | 38,550 | |||||||
| Change in cash and cash equivalents | (120,488 | ) | (31,026 | ) | ||||||
| Cash and cash equivalents at beginning of period | 438,131 | 48,882 | ||||||||
| Cash and cash equivalents at end of period | $ | 317,643 | $ | 17,856 | ||||||
| Supplemental disclosure of cash flow information | ||||||||||
| Cash paid for interest | $ | 111,176 | $ | 111,687 | ||||||
| Cash paid for income taxes, net | $ | 39,030 | $ | 2,122 | ||||||
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IASIS HEALTHCARE LLC Segment Information (Unaudited) (in thousands) |
|||||||||||||||||||
| For the Quarter Ended June 30, 2014 | |||||||||||||||||||
|
Acute Care |
Health Choice | Eliminations | Consolidated | ||||||||||||||||
| Acute care revenue before provision for bad debts | $ | 556,318 | $ | – | $ | – | $ | 556,318 | |||||||||||
| Less: Provision for bad debts | (83,437 | ) | – | – | (83,437 | ) | |||||||||||||
| Acute care revenue | 472,881 | – | – | 472,881 | |||||||||||||||
| Premium revenue | – | 200,281 | – | 200,281 | |||||||||||||||
| Revenue between segments | 3,262 | – | (3,262 | ) | – | ||||||||||||||
| Net revenue | 476,143 | 200,281 | (3,262 | ) | 673,162 | ||||||||||||||
| Salaries and benefits (excludes stock-based compensation) | 221,175 | 8,929 | – | 230,104 | |||||||||||||||
| Supplies | 80,341 | 70 | – | 80,411 | |||||||||||||||
| Medical claims | – | 169,205 | (3,262 | ) | 165,943 | ||||||||||||||
|
Rentals and leases (excludes sale-leaseback rent expense) |
13,870 | 448 | – | 14,318 | |||||||||||||||
| Other operating expenses (excludes expenses related to stock-based compensation) | 101,706 | 13,059 | – | 114,765 | |||||||||||||||
| Medicare and Medicaid EHR incentives | (2,790 | ) | – | – | (2,790 | ) | |||||||||||||
| Adjusted EBITDAR | 61,841 | 8,570 | – | 70,411 | |||||||||||||||
| Sale-leaseback rent expense | 4,478 | – | – | 4,478 | |||||||||||||||
| Adjusted EBITDA | 57,363 | 8,570 | – | 65,933 | |||||||||||||||
| Interest expense, net | 32,275 | – | – | 32,275 | |||||||||||||||
| Depreciation and amortization | 22,244 | 1,032 | – | 23,276 | |||||||||||||||
| Stock-based compensation and related expenses | 4,610 | – | – | 4,610 | |||||||||||||||
| Management fees | 1,250 | – | – | 1,250 | |||||||||||||||
| Earnings (loss) from continuing operations before gain on disposal of assets and income taxes | (3,016 | ) | 7,538 | – | 4,522 | ||||||||||||||
| Gain on disposal of assets, net | 332 | – | – | 332 | |||||||||||||||
|
Earnings (loss) from continuing operations before income taxes |
$ | (2,684 | ) | $ | 7,538 | $ | – | $ | 4,854 | ||||||||||
| For the Quarter Ended June 30, 2013 | |||||||||||||||||||
| Acute Care | Health Choice | Eliminations | Consolidated | ||||||||||||||||
| Acute care revenue before provision for bad debts | $ | 555,413 | $ | – | $ | – | $ | 555,413 | |||||||||||
| Less: Provision for bad debts | (96,090 | ) | – | – | (96,090 | ) | |||||||||||||
| Acute care revenue | 459,323 | – | – | 459,323 | |||||||||||||||
| Premium revenue | – | 139,804 | – | 139,804 | |||||||||||||||
| Revenue between segments | 1,940 | – | (1,940 | ) | – | ||||||||||||||
| Net revenue | 461,263 | 139,804 | (1,940 | ) | 599,127 | ||||||||||||||
| Salaries and benefits (excludes stock-based compensation) | 212,859 | 6,090 | – | 218,949 | |||||||||||||||
| Supplies | 79,422 | 40 | – | 79,462 | |||||||||||||||
| Medical claims | – | 118,580 | (1,940 | ) | 116,640 | ||||||||||||||
|
Rentals and leases (excludes sale-leaseback rent expense) |
13,597 | 395 | – | 13,992 | |||||||||||||||
| Other operating expenses | 100,463 | 5,993 | – | 106,456 | |||||||||||||||
| Medicare and Medicaid EHR incentives | (4,827 | ) | – | – | (4,827 | ) | |||||||||||||
| Adjusted EBITDAR | 59,749 | 8,706 | – | 68,455 | |||||||||||||||
| Sale-leaseback rent expense | – | – | – | – | |||||||||||||||
| Adjusted EBITDA | 59,749 | 8,706 | – | 68,455 | |||||||||||||||
| Interest expense, net | 32,771 | – | – | 32,771 | |||||||||||||||
| Depreciation and amortization | 23,463 | 1,029 | – | 24,492 | |||||||||||||||
| Stock-based compensation | 947 | – | – | 947 | |||||||||||||||
| Management fees | 1,250 | – | – | 1,250 | |||||||||||||||
|
Earnings from continuing operations before gain on disposal of assets and income taxes |
1,318 | 7,677 | – | 8,995 | |||||||||||||||
| Gain on disposal of assets, net | 481 | – | – | 481 | |||||||||||||||
|
Earnings from continuing operations before income taxes |
$ | 1,799 | $ | 7,677 | $ | – | $ | 9,476 | |||||||||||
|
IASIS HEALTHCARE LLC Segment Information (Unaudited) (in thousands) |
|||||||||||||||||||
| For the Nine Months Ended June 30, 2014 | |||||||||||||||||||
| Acute Care |
Health Choice |
Eliminations | Consolidated | ||||||||||||||||
| Acute care revenue before provision for bad debts | $ | 1,692,779 | $ | – | $ | – | $ | 1,692,779 | |||||||||||
|
Less: Provision for bad debts |
(281,931 | ) | – | – | (281,931 | ) | |||||||||||||
| Acute care revenue | 1,410,848 | – | – | 1,410,848 | |||||||||||||||
| Premium revenue | – | 524,995 | – | 524,995 | |||||||||||||||
| Revenue between segments | 8,539 | – | (8,539 | ) | – | ||||||||||||||
| Net revenue | 1,419,387 | 524,995 | (8,539 | ) | 1,935,843 | ||||||||||||||
| Salaries and benefits (excludes stock-based compensation) | 669,527 | 23,660 | – | 693,187 | |||||||||||||||
| Supplies | 243,264 | 173 | – | 243,437 | |||||||||||||||
| Medical claims | – | 445,293 | (8,539 | ) | 436,754 | ||||||||||||||
|
Rentals and leases (excludes sale-leaseback rent expense) |
42,023 | 1,165 | – | 43,188 | |||||||||||||||
| Other operating expenses (excludes expenses related to stock-based compensation) | 296,401 | 28,443 | – | 324,844 | |||||||||||||||
| Medicare and Medicaid EHR incentives | (10,233 | ) | – | – | (10,233 | ) | |||||||||||||
| Adjusted EBITDAR | 178,405 | 26,261 | – | 204,666 | |||||||||||||||
| Sale-leaseback rent expense | 13,241 | – | – | 13,241 | |||||||||||||||
| Adjusted EBITDA | 165,164 | 26,261 | – | 191,425 | |||||||||||||||
| Interest expense, net | 98,325 | – | – | 98,325 | |||||||||||||||
| Depreciation and amortization | 68,723 | 3,137 | – | 71,860 | |||||||||||||||
| Stock-based compensation and related expenses | 8,964 | – | – | 8,964 | |||||||||||||||
| Management fees | 3,750 | – | – | 3,750 | |||||||||||||||
| Earnings (loss) from continuing operations before gain on disposal of assets and income taxes | (14,598 | ) | 23,124 | – | 8,526 | ||||||||||||||
| Gain on disposal of assets, net | 1,100 | – | – | 1,100 | |||||||||||||||
|
Earnings (loss) from continuing operations before income taxes |
$ | (13,498 | ) | $ | 23,124 | $ | – | $ | 9,626 | ||||||||||
| For the Nine Months Ended June 30, 2013 | |||||||||||||||||||
| Acute Care | Health Choice | Eliminations | Consolidated | ||||||||||||||||
| Acute care revenue before provision for bad debts | $ | 1,636,836 | $ | – | $ | – | $ | 1,636,836 | |||||||||||
| Less: Provision for bad debts | (267,014 | ) | – | – | (267,014 | ) | |||||||||||||
| Acute care revenue | 1,369,822 | – | – | 1,369,822 | |||||||||||||||
| Premium revenue | – | 422,059 | – | 422,059 | |||||||||||||||
| Revenue between segments | 5,334 | – | (5,334 | ) | – | ||||||||||||||
| Net revenue | 1,375,156 | 422,059 | (5,334 | ) | 1,791,881 | ||||||||||||||
| Salaries and benefits (excludes stock-based compensation) | 649,720 | 17,620 | – | 667,340 | |||||||||||||||
| Supplies | 240,582 | 142 | – | 240,724 | |||||||||||||||
| Medical claims | – | 353,890 | (5,334 | ) | 348,556 | ||||||||||||||
|
Rentals and leases (excludes sale-leaseback rent expense) |
39,443 | 1,192 | – | 40,635 | |||||||||||||||
| Other operating expenses | 292,488 | 17,499 | – | 309,987 | |||||||||||||||
| Medicare and Medicaid EHR incentives | (11,209 | ) | – | – | (11,209 | ) | |||||||||||||
| Adjusted EBITDAR | 164,132 | 31,716 | – | 195,848 | |||||||||||||||
| Sale-leaseback rent expense | – | – | – | – | |||||||||||||||
| Adjusted EBITDA | 164,132 | 31,716 | – | 195,848 | |||||||||||||||
| Interest expense, net | 99,987 | – | – | 99,987 | |||||||||||||||
| Depreciation and amortization | 69,510 | 3,096 | – | 72,606 | |||||||||||||||
| Stock-based compensation | 2,946 | – | – | 2,946 | |||||||||||||||
| Management fees | 3,750 | – | – | 3,750 | |||||||||||||||
|
Earnings (loss) from continuing operations before gain on disposal of assets and income taxes |
(12,061 | ) | 28,620 | – | 16,559 | ||||||||||||||
| Gain on disposal of assets, net | 649 | – | – | 649 | |||||||||||||||
|
Earnings (loss) from continuing operations before income taxes |
$ | (11,412 | ) | $ | 28,620 | $ | – | $ | 17,208 | ||||||||||
|
IASIS HEALTHCARE LLC Consolidated Financial and Operating Data (Unaudited) |
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|
Quarter Ended
June 30, |
Nine Months Ended
June 30, |
|||||||||||||||
| 2014 |
2013 |
2014 |
2013 |
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| Consolidated Hospital Facilities | ||||||||||||||||
|
Number of acute care hospital facilities at end of period |
16 | 16 | 16 | 16 | ||||||||||||
| Licensed beds at end of period | 3,778 | 3,804 | 3,778 | 3,804 | ||||||||||||
| Average length of stay (days) | 5.1 | 5.1 | 5.2 | 5.1 | ||||||||||||
| Occupancy rates (average beds in service) | 48.5 | % | 49.7 | % | 49.6 | % | 50.6 | % | ||||||||
| Admissions | 26,307 | 27,155 | 79,796 | 82,643 | ||||||||||||
| Percentage change | (3.1 | )% | (3.4 | )% | ||||||||||||
| Adjusted admissions | 49,103 | 48,175 | 144,790 | 143,750 | ||||||||||||
| Percentage change | 1.9 | % | 0.7 | % | ||||||||||||
| Patient days | 133,488 | 138,108 | 409,923 | 421,159 | ||||||||||||
| Adjusted patient days | 249,162 | 245,015 | 743,804 | 732,569 | ||||||||||||
| Outpatient revenue as a percentage of gross patient revenue | 46.4 | % | 43.6 | % | 44.9 | % | 42.5 | % | ||||||||
|
IASIS HEALTHCARE LLC Supplemental Consolidated Statements of Operations Information (Unaudited) (in thousands) |
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|
Quarter Ended
June 30, |
Nine Months Ended
June 30, |
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
| Consolidated Results | ||||||||||||||||||||
|
Net earnings (loss) from continuing operations |
$ | (1,477 | ) | $ | 5,626 | $ | (572 | ) | $ | 9,192 | ||||||||||
| Add: | ||||||||||||||||||||
| Interest expense, net | 32,275 | 32,771 | 98,325 | 99,987 | ||||||||||||||||
| Income tax expense | 6,331 | 3,850 | 10,198 | 8,016 | ||||||||||||||||
| Depreciation and amortization | 23,276 | 24,492 | 71,860 | 72,606 | ||||||||||||||||
| Sale-leaseback rent expense | 4,478 | – | 13,241 | – | ||||||||||||||||
| Stock-based compensation and related expenses | 4,610 | 947 | 8,964 | 2,946 | ||||||||||||||||
| Gain on disposal of assets, net | (332 | ) | (481 | ) | (1,100 | ) | (649 | ) | ||||||||||||
| Management fees | 1,250 | 1,250 | 3,750 | 3,750 | ||||||||||||||||
| Adjusted EBITDAR | 70,411 | 68,455 | 204,666 | 195,848 | ||||||||||||||||
| Sale-leaseback rent expense | 4,478 | – | 13,241 | – | ||||||||||||||||
| Adjusted EBITDA | $ | 65,933 | $ | 68,455 | $ | 191,425 | $ | 195,848 | ||||||||||||
CONTACT:
IASIS Healthcare LLC
Investor Contact:
W.
Carl Whitmer, 615-844-2747
President and Chief Executive Officer
or
John
M. Doyle, 615-844-2747
Chief Financial Officer