UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q/A
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2013
OR
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to .
Commission file number: 001-36154
SURGICAL CARE AFFILIATES, INC.
(Exact name of registrant as specified in its charter)
Delaware | 20-8740447 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
520 Lake Cook Road, Suite 250 Deerfield, IL |
60015 | |
(Address of principal executive offices) | (Zip Code) |
(847) 236-0921
(Registrants telephone number, including area code)
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 ¨ No x
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ¨ | Accelerated filer | ¨ | |||
Non-accelerated filer | x | Smaller reporting company | ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.
Class of Common Stock |
Outstanding at November 13, 2013 | |
Common stock, $0.01 par value | 38,142,861 shares |
EXPLANATORY NOTE
The sole purpose of this Amendment No. 1 to the Quarterly Report of Surgical Care Affiliates, Inc. (the Company) on Form 10-Q for the quarterly period ended September 30, 2013, filed with the Securities and Exchange Commission on November 15, 2013 (the Form 10-Q), is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the Interactive Data Files for the condensed consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language). As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 was required to be furnished by amendment within 30 days of the original filing date of the Form 10-Q.
Other than the aforementioned, no other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.
1
PART II OTHER INFORMATION
Item 6. Exhibits
Exhibit Number |
Exhibit Description | |
3.1 | Certificate of Incorporation of Surgical Care Affiliates, Inc. (incorporated by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on November 4, 2013) | |
3.2 | By-Laws of Surgical Care Affiliates, Inc. (incorporated by reference to Exhibit 3.2 to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on November 4, 2013) | |
31.1* | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2* | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1* | Certification by Chief Executive Officer pursuant to 18 USC. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2* | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS** | XBRL Instance Document | |
101.SCH** | XBRL Taxonomy Extension Schema Document | |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB** | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Previously filed with the Companys Form 10-Q for the period ended September 30, 2013, which was filed with the Securities and Exchange Commission on November 15, 2013. |
** | Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SURGICAL CARE AFFILIATES, INC. (Registrant) | ||||
Date: December 13, 2013 | /s/ Andrew Hayek | |||
Andrew Hayek President and Chief Executive Officer | ||||
Date: December 13, 2013 | /s/ Peter Clemens | |||
Peter Clemens Executive Vice President and Chief Financial Officer |
3
Equity-Based Compensation
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2013
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Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-Based Compensation | NOTE 9 — EQUITY-BASED COMPENSATION In conjunction with our conversion to a Delaware corporation on October 30, 2013 (see Note 1), every 10.25 outstanding membership units of ASC Acquisition LLC were converted into one share of common stock of Surgical Care Affiliates, Inc., and options to purchase membership units of ASC Acquisition LLC were converted into options to purchase shares of common stock of Surgical Care Affiliates, Inc. at a ratio of 10.25 membership units of ASC Acquisition LLC underlying such options to each one share of common stock of Surgical Care Affiliates, Inc. underlying such converted options. In connection with the conversion, the exercise prices of such converted options were adjusted accordingly. In addition, every 10.25 outstanding restricted equity units of ASC Acquisition LLC were converted into one restricted equity share of Surgical Care Affiliates, Inc. All information in this Quarterly Report on Form 10-Q is presented giving effect to the conversion. On September 16, 2013, our board of directors accelerated the vesting of 806,303 performance-based options. This modification was a “probable-to-probable” modification under the authoritative guidance. As a result of the acceleration, the Company recognized $0.8 million of additional stock-based compensation expense in the three-months ended September 30, 2013. The additional expense represents the incremental fair value as a result of the modification. Also on September 16, 2013, our board of directors resolved to pay a cash bonus of $2.46 per vested option and adjust downward the exercise price of all unvested options by approximately $2.46 per unvested option. As such the Company recorded additional compensation expense of $4.6 million during the three- and nine-months ended September 30, 2013. We will record stock-based compensation expense over the remaining vesting periods related to the adjustment to unvested options. This modification was a “probable-to-probable” modification under the authoritative guidance. We will record $1.6 million of additional stock-based compensation expense over remaining vesting periods of the modified options. Information pertaining to share-based activity during the three- and nine- months ended September 30, 2013 and 2012 was as follows (in thousands):
As of September 30, 2013, the Company had total unrecognized compensation cost of approximately $7.9 million related to non-vested awards, which the Company expects to recognize through 2017 and over a weighted average period of 2.7 years. A summary of the status of non-vested restricted shares at September 30, 2013 and changes during the nine-months ended September 30, 2013 is as follows:
A summary of stock option activity for the nine-months ended September 30, 2013 is summarized as follows:
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Fair Value of Financial Instruments - Schedule of Fair Values of Our Assets and Liabilities that are Measured on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], Income Approach [Member], USD $)
In Millions, unless otherwise specified |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2013
|
Dec. 31, 2012
|
|
Assets | ||
Total assets | $ 1.7 | |
Liabilities | ||
Total liabilities | 3.3 | 6.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
||
Assets | ||
Total assets | ||
Liabilities | ||
Total liabilities | ||
Significant Other Observable Inputs (Level 2) [Member]
|
||
Assets | ||
Total assets | ||
Liabilities | ||
Total liabilities | 3.3 | 6.1 |
Significant Unobservable Inputs (Level 3) [Member]
|
||
Assets | ||
Total assets | 1.7 | |
Liabilities | ||
Total liabilities | ||
Other current liabilities [Member]
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||
Liabilities | ||
Total liabilities | 2.2 | |
Fair Value Measurement, Valuation Technique | Income approach (I) | Income approach (I) |
Other current liabilities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
||
Liabilities | ||
Total liabilities | ||
Other current liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member]
|
||
Liabilities | ||
Total liabilities | 2.2 | |
Other current liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member]
|
||
Liabilities | ||
Total liabilities | ||
Other long-term liabilities [Member]
|
||
Liabilities | ||
Total liabilities | 3.3 | 3.9 |
Fair Value Measurement, Valuation Technique | Income approach (I) | Income approach (I) |
Other long-term liabilities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
||
Liabilities | ||
Total liabilities | ||
Other long-term liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member]
|
||
Liabilities | ||
Total liabilities | 3.3 | 3.9 |
Other long-term liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member]
|
||
Liabilities | ||
Total liabilities | ||
Other long-term assets [Member]
|
||
Assets | ||
Total assets | 1.7 | |
Liabilities | ||
Fair Value Measurement, Valuation Technique | Income approach (I) | |
Other long-term assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
||
Assets | ||
Total assets | ||
Other long-term assets [Member] | Significant Other Observable Inputs (Level 2) [Member]
|
||
Assets | ||
Total assets | ||
Other long-term assets [Member] | Significant Unobservable Inputs (Level 3) [Member]
|
||
Assets | ||
Total assets | $ 1.7 |
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