EX-99.1 2 g03761exv99w1.htm EX-99.1 EX-99.1
 

Exhibit 99.1
                                 
    Three Months Ended  
    September 30,     June 30,     March 31,     December 31,  
    2004     2004     2004     2003  
Consolidated Statements of Operations: (in thousands, except per share data)
                                
Net revenue
   $ 164,821     $ 162,137     $ 152,754     $ 138,466  
Operating expenses:
                                
Personnel expense
     50,930       50,341       47,599       42,623  
Medical supplies expense
     46,662       46,597       41,720       38,226  
Bad debt expense
     11,877       9,088       8,502       11,280  
Other operating expenses
     33,148       34,280       33,652       28,432  
Pre-opening expenses
     —       —       2,087       3,016  
Depreciation
     9,503       10,388       9,900       9,184  
Amortization
     290       290       290       290  
Loss (gain) on disposal of property, equipment and other assets
     113       35       26       (85 )
Impairments of long-lived assets
     7,227       —       —       —  
 
                        
Total operating expenses
     159,750       151,019       143,776       132,966  
 
                        
Income from operations
     5,071       11,118       8,978       5,500  
Other income (expenses):
                                
Interest expense
     (7,741 )     (6,280 )     (6,147 )     (5,711 )
Interest and other income, net
     245       216       160       233  
Loss on debt refinancing
     (5,072 )     —       —       —  
Equity in net earnings of unconsolidated affiliates
     916       900       1,147       577  
 
                        
Total other expenses, net
     (11,652 )     (5,164 )     (4,840 )     (4,901 )
 
                        
Income (loss) from continuing operations before minority interest, taxes and discontinued operations
     (6,581 )     5,954       4,138       599  
Minority interest share of (earnings) losses of consolidated subsidiaries
     (3,381 )     (2,852 )     65       (711 )
 
                        
Income (loss) from continuing operations before income taxes and discontinued operations
     (9,962 )     3,102       4,203       (112 )
Income tax expense (benefit)
     (3,923 )     1,045       1,621       (45 )
 
                        
Income (loss) from continuing operations
     (6,039 )     2,057       2,582       (67 )
Income (loss) from discontinued operations
     (672 )     (677 )     59       (866 )
 
                        
Net income (loss)
   $ (6,711 )   $ 1,380     $ 2,641     $ (933 )
 
                        
 
Earnings (loss) per share, basic
                               
Continuing operations
   $ (0.33 )   $ 0.12     $ 0.15     $ (0.00 )
Discontinued operations
   $ (0.04 )   $ (0.04 )   $ 0.00     $ (0.05 )
 
                        
Earnings (loss) per share, basic
   $ (0.37 )   $ 0.08     $ 0.15     $ (0.05 )
 
Earnings (loss) per share, diluted
                               
Continuing operations
   $ (0.33 )   $ 0.11     $ 0.14     $ (0.00 )
Discontinued operations
   $ (0.04 )   $ (0.04 )   $ 0.00     $ (0.05 )
 
                        
Earnings (loss) per share, diluted
   $ (0.37 )   $ 0.07     $ 0.14     $ (0.05 )
 
Weighted average number of shares, basic
     18,014       17,990       17,985       17,949  
Dilutive effect of stock options
     —       826       514       —  
 
                        
Weighted average number of shares, diluted
     18,014       18,816       18,499       17,949  
 
                        
 
Consolidated Balance Sheet Data: (in thousands)
                                
Cash and cash equivalents
   $ 69,855     $ 87,967     $ 80,864     $ 78,051  
Working capital
     102,681       102,820       56,291       60,506  
Total assets
     754,236       773,072       779,955       747,516  
Long-term debt and capital leases, excluding current maturities
     351,097       314,845       298,360       290,085  
Other long-term obligations
     1,620       2,236       3,094       2,649  
Stockholders’ equity
     263,648       269,714       267,228       264,625  
 
                                
Selected Operating Data (consolidated) (a):
                                
Number of hospitals
     10       10       10       8  
Licensed beds (d)
     612       612       612       520  
Staffed and available beds (e)
     536       541       525       464  
Admissions (f)
     10,156       9,834       9,533       8,674  
Adjusted admissions (g)
     12,979       12,388       11,902       10,837  
Patient days (h)
     34,329       33,730       34,065       31,243  
Adjusted patient days (i)
     43,617       42,405       42,493       39,033  
Average length of stay (j)
     3.38       3.43       3.57       3.6  
Occupancy (k)
     69.6 %     68.5 %     72.1 %     73.2 %
Inpatient catheterization procedures
     5,357       5,284       4,920       4,189  
Inpatient surgical procedures
     2,687       2,611       2,511       2,183  
 
                                
Selected Operating Data (same facility) (b):
                                
Number of hospitals
     8       8       7       7  
Licensed beds (d)
     520       520       462       462  
Staffed and available beds (e)
     471       471       429       428  
Admissions (f)
     9,112       8,935       8,799       8,288  
Adjusted admissions (g)
     11,777       11,352       10,952       10,304  
Patient days (h)
     30,969       30,808       31,708       30,131  
Adjusted patient days (i)
     39,756       39,040       39,452       37,496  
Average length of stay (j)
     3.4       3.45       3.6       3.64  
Occupancy (k)
     71.5 %     71.9 %     81.2 %     76.5 %
Inpatient catheterization procedures
     4,580       4,610       4,457       3,948  
Inpatient surgical procedures
     2,461       2,417       2,271       2,050  
 
                                
Selected Operating Data (same facility — as of subsequent comparable period end date) (c):
                                
Number of hospitals
     10       10       8       8  
Licensed beds (d)
     612       612       520       520  
Staffed and available beds (e)
     536       541       471       464  
Admissions (f)
     10,156       9,834       9,244       8,674  
Adjusted admissions (g)
     12,979       12,388       11,552       10,837  
Patient days (h)
     34,329       33,730       33,115       31,243  
Adjusted patient days (i)
     43,617       42,405       41,352       39,033  
Average length of stay (j)
     3.38       3.43       3.58       3.6  
Occupancy (k)
     69.6 %     68.5 %     78.1 %     73.2 %
Inpatient catheterization procedures
     5,357       5,284       4,715       4,189  
Inpatient surgical procedures
     2,687       2,611       2,426       2,183  
 
(a)   Selected operating data includes consolidated hospitals in operation as of the end of period reported in continuing operations but does not include hospitals which were accounted for using the equity method or as discontinued operations in our consolidated financial statements.
 
(b)   Selected operating data includes those consolidated hospitals that were open and operational for the three months ending each quarter of fiscal year 2004 that were also operational for the three months ending the same quarter of fiscal year 2003.
 
(c)   Selected operating data includes those consolidated hospitals that were open and operational for the three months ending each quarter of fiscal year 2004 that were also operational for the three months ending the same quarter of fiscal year 2005.
 
(d)   Licensed beds represent the number of beds for which the appropriate state agency licenses a facility regardless of whether the beds are actually available for patient use.
 
(e)   Staffed and available beds represent the number of beds that are readily available for patient use at the end of the period.
 
(f)   Admissions represent the number of patients admitted for inpatient treatment.
 
(g)   Adjusted admissions is a general measure of combined inpatient and outpatient volume. We computed adjusted admissions by dividing gross patient revenue by gross inpatient revenue and then multiplying the quotient by admissions.
 
(h)   Patient days represent the total number of days of care provided to inpatients.
 
(i)   Adjusted patient days is a general measure of combined inpatient and outpatient volume. We computed adjusted patient days by dividing gross patient revenue by gross inpatient revenue and then multiplying the quotient by patient days.
 
(j)   Average length of stay (days) represents the average number of days inpatients stay in our hospitals.
 
(k)   We computed occupancy by dividing patient days by the number of days in the period and then dividing the quotient by the number of staffed and available beds.

 

                                 
    Three Months Ended  
    September 30,     June 30,     March 31,     December 31,  
    2005     2005     2005     2004  
Consolidated Statements of Operations:
                                
(in thousands, except per share data)
                                
Net revenue
   $ 175,547     $ 179,787     $ 176,074     $ 168,295  
Operating expenses:
                                
Personnel expense
     55,010       53,893       53,864       52,117  
Medical supplies expense
     48,512       51,047       50,234       47,532  
Bad debt expense
     14,340       13,874       11,743       10,446  
Other operating expenses
     35,490       36,286       35,852       35,178  
Pre-opening expenses
     —       —       —       —  
Depreciation
     10,379       9,034       8,937       9,243  
Amortization
     290       290       290       290  
Loss (gain) on disposal of property, equipment and other assets
     (824 )     148       55       1  
Impairments of long-lived assets
     2,662       —       —       —  
 
                        
Total operating expenses
     165,859       164,572       160,975       154,807  
 
                        
Income from operations
     9,688       15,215       15,099       13,488  
Other income (expenses):
                                
Interest expense
     (8,705 )     (8,440 )     (7,813 )     (7,876 )
Interest and other income, net
     1,175       868       613       389  
Equity in net earnings of unconsolidated affiliates
     802       899       886       769  
 
                        
Total other expenses, net
     (6,728 )     (6,673 )     (6,314 )     (6,718 )
 
                        
Income from continuing operations before minority interest, taxes and discontinued operations
     2,960       8,542       8,785       6,770  
Minority interest share of earnings of consolidated subsidiaries
     (3,611 )     (3,956 )     (4,402 )     (3,999 )
 
                        
Income (loss) from continuing operations before income taxes and discontinued operations
     (651 )     4,586       4,383       2,771  
Income tax expense (benefit)
     (101 )     1,952       1,755       1,107  
 
                        
Income (loss) from continuing operations
     (550 )     2,634       2,628       1,164  
Income (loss) from discontinued operations
     (1,751 )     115       1,175       2,876  
 
                        
Net income (loss)
   $ (2,301 )   $ 2,749     $ 3,803     $ 4,540  
 
                        
 
                                
Earnings (loss) per share, basic
                                
Continuing operations
   $ (0.03 )   $ 0.14     $ 0.15     $ 0.09  
Discontinued operations
   $ (0.09 )   $ 0.01     $ 0.06     $ 0.16  
 
                        
Earnings (loss) per share, basic
   $ (0.12 )   $ 0.15     $ 0.21     $ 0.25  
 
                                
Earnings (loss) per share, diluted
                                
Continuing operations
   $ (0.03 )   $ 0.13     $ 0.14     $ 0.09  
Discontinued operations
   $ (0.09 )   $ 0.01     $ 0.06     $ 0.15  
 
                        
Earnings (loss) per share, diluted
   $ (0.12 )   $ 0.14     $ 0.20     $ 0.24  
 
                                
Weighted average number of shares, basic
     18,493       18,425       18,177       18,045  
Dilutive effect of stock options
     —       1,248       1,285       932  
 
                        
Weighted average number of shares, diluted
     18,493       19,673       19,462       18,977  
 
                        
 
                                
Consolidated Balance Sheet Data:
                                
(in thousands)
                                
Cash and cash equivalents
   $ 140,842     $ 140,317     $ 121,703     $ 113,927  
Working capital
     135,101       124,678       124,373       150,680  
Total assets
     763,205       770,704       771,858       763,048  
Long-term debt and capital leases, excluding current maturities
     299,401       298,509       313,327       348,558  
Other long-term obligations
     497       808       829       1,204  
Stockholders’ equity
     282,741       283,508       278,094       269,499  
 
                                
Selected Operating Data (consolidated) (a):
                                
Number of hospitals
     10       10       10       10  
Licensed beds (c)
     612       612       612       612  
Staffed and available beds (d)
     578       571       571       571  
Admissions (e)
     10,482       10,364       10,788       9,967  
Adjusted admissions (f)
     13,694       13,555       14,008       12,790  
Patient days (g)
     35,039       36,281       39,186       34,271  
Adjusted patient days (h)
     45,465       47,202       50,788       43,689  
Average length of stay (i)
     3.34       3.50       3.63       3.44  
Occupancy (j)
     65.9 %     69.8 %     76.3 %     65.2 %
Inpatient catheterization procedures
     5,616       5,457       5,427       5,336  
Inpatient surgical procedures
     2,816       2,915       2,964       2,616  
 
                                
Selected Operating Data (same facility) (b):
                                
Number of hospitals
     10       10       8       8  
Licensed beds (c)
     612       612       520       520  
Staffed and available beds (d)
     578       571       487       487  
Admissions (e)
     10,482       10,364       9,568       8,950  
Adjusted admissions (f)
     13,694       13,555       12,597       11,626  
Patient days (g)
     35,039       36,281       34,759       30,457  
Adjusted patient days (h)
     45,465       47,202       45,668       39,345  
Average length of stay (i)
     3.34       3.50       3.63       3.40  
Occupancy (j)
     65.9 %     69.8 %     79.3 %     68.0 %
Inpatient catheterization procedures
     5,616       5,457       4,577       4,628  
Inpatient surgical procedures
     2,816       2,915       2,683       2,372  
(a)   Selected operating data includes consolidated hospitals in operation as of the end of period reported in continuing operations but does not include hospitals which were accounted for using the equity method or as discontinued operations in our consolidated financial statements.
 
(b)   Selected operating data includes those consolidated hospitals that were open and operational for the three months ending each quarter of fiscal year 2005 that were also operational for the three months ending the same quarter of fiscal year 2004.
 
(c)   Licensed beds represent the number of beds for which the appropriate state agency licenses a facility regardless of whether the beds are actually available for patient use.
 
(d)   Staffed and available beds represent the number of beds that are readily available for patient use at the end of the period.
 
(e)   Admissions represent the number of patients admitted for inpatient treatment.
 
(f)   Adjusted admissions is a general measure of combined inpatient and outpatient volume. We computed adjusted admissions by dividing gross patient revenue by gross inpatient revenue and then multiplying the quotient by admissions.
 
(g)   Patient days represent the total number of days of care provided to inpatients.
 
(h)   Adjusted patient days is a general measure of combined inpatient and outpatient volume. We computed adjusted patient days by dividing gross patient revenue by gross inpatient revenue and then multiplying the quotient by patient days.
 
(i)   Average length of stay (days) represents the average number of days inpatients stay in our hospitals.
 
(j)   We computed occupancy by dividing patient days by the number of days in the period and then dividing the quotient by the number of staffed and available beds.
 

 

                         
    Three Months Ended  
    June 30,     March 31,     December 31,  
    2006     2006     2005  
Consolidated Statements of Operations:
                        
(in thousands, except per share data)
                        
Net revenue
   $ 189,832     $ 192,488     $ 171,836  
Operating expenses:
                        
Personnel expense
     58,033       67,934       55,244  
Medical supplies expense
     52,657       53,915       48,163  
Bad debt expense
     14,228       16,788       13,389  
Other operating expenses
     37,916       37,868       38,339  
Pre-opening expenses
     —       —       —  
Depreciation
     9,366       9,264       9,171  
Amortization
     252       252       252  
Loss (gain) on disposal of property, equipment and other assets
     (296 )     (38 )     97  
Impairments of long-lived assets
     451       —       —  
 
                  
Total operating expenses
     172,607       185,983       164,655  
 
                  
Income from operations
     17,225       6,505       7,181  
Other income (expenses):
                        
Interest expense
     (7,870 )     (8,899 )     (9,059 )
Interest and other income, net
     2,977       1,367       1,404  
Equity in net earnings of unconsolidated affiliates
     1,408       1,410       1,065  
 
                  
Total other expenses, net
     (3,485 )     (6,122 )     (6,590 )
 
                  
Income from continuing operations before minority interest, taxes and discontinued operations
     13,740       383       591  
Minority interest share of earnings of consolidated subsidiaries
     (4,742 )     (4,790 )     (2,818 )
 
                  
Income (loss) from continuing operations before income taxes and discontinued operations
     8,998       (4,407 )     (2,227 )
Income tax expense (benefit)
     3,649       (1,766 )     (890 )
 
                  
Income (loss) from continuing operations
     5,349       (2,641 )     (1,337 )
Income (loss) from discontinued operations
     (439 )     701       4  
 
                  
Net income (loss)
   $ 4,910     $ (1,940 )   $ (1,333 )
 
                  
 
                        
Earnings (loss) per share, basic
                        
Continuing operations
   $ 0.28     $ (0.14 )   $ (0.07 )
Discontinued operations
   $ (0.02 )   $ 0.04     $ —  
 
                  
Earnings (loss) per share, basic
   $ 0.26     $ (0.10 )   $ (0.07 )
 
                        
Earnings (loss) per share, diluted
                        
Continuing operations
   $ 0.27     $ (0.14 )   $ (0.07 )
Discontinued operations
   $ (0.02 )   $ 0.04     $ —  
 
                  
Earnings (loss) per share, diluted
   $ 0.25     $ (0.10 )   $ (0.07 )
 
                        
Weighted average number of shares, basic
     18,630       18,618       18,501  
Dilutive effect of stock options and restricted stock
     661       —       —  
 
                  
Weighted average number of shares, diluted
     19,291       18,618       18,501  
 
                  
 
                        
Consolidated Balance Sheet Data:
                        
(in thousands)
                        
Cash and cash equivalents
   $ 144,561     $ 124,855     $ 135,315  
Working capital
     155,460       140,164       146,450  
Total assets
     767,515       758,168       762,962  
Long-term debt and capital leases, excluding current maturities
     298,087       300,278       313,374  
Other long-term obligations
     319       307       341  
Stockholders’ equity
     299,480       291,919       282,533  
 
                        
Selected Operating Data (consolidated) (a):
                        
Number of hospitals
     10       10       10  
Licensed beds (c)
     612       612       612  
Staffed and available beds (d)
     595       600       607  
Admissions (e)
     11,115       11,484       10,388  
Adjusted admissions (f)
     14,494       14,825       13,504  
Patient days (g)
     35,508       38,820       35,169  
Adjusted patient days (h)
     46,318       50,245       45,578  
Average length of stay (i)
     3.19       3.38       3.39  
Occupancy (j)
     65.6 %     71.9 %     63.0 %
Inpatient catheterization procedures
     5,838       5,983       5,208  
Inpatient surgical procedures
     2,920       3,103       2,679  
 
                        
Selected Operating Data (same facility) (b):
                        
Number of hospitals
     10       10       10  
Licensed beds (c)
     612       612       612  
Staffed and available beds (d)
     595       600       607  
Admissions (e)
     11,115       11,484       10,388  
Adjusted admissions (f)
     14,494       14,825       13,504  
Patient days (g)
     35,508       38,820       35,169  
Adjusted patient days (h)
     46,318       50,245       45,578  
Average length of stay (i)
     3.19       3.38       3.39  
Occupancy (j)
     65.6 %     71.9 %     63.0 %
Inpatient catheterization procedures
     5,838       5,983       5,208  
Inpatient surgical procedures
     2,920       3,103       2,679  
(a)   Selected operating data includes consolidated hospitals in operation as of the end of period reported in continuing operations but does not include hospitals which were accounted for using the equity method or as discontinued operations in our consolidated financial statements.
 
(b)   Selected operating data includes those consolidated hospitals that were open and operational for the three months ending each quarter of fiscal year 2006 that were also operational for the three months ending the same quarter of fiscal year 2005.
 
(c)   Licensed beds represent the number of beds for which the appropriate state agency licenses a facility regardless of whether the beds are actually available for patient use.
 
(d)   Staffed and available beds represent the number of beds that are readily available for patient use at the end of the period.
 
(e)   Admissions represent the number of patients admitted for inpatient treatment.
 
(f)   Adjusted admissions is a general measure of combined inpatient and outpatient volume. We computed adjusted admissions by dividing gross patient revenue by gross inpatient revenue and then multiplying the quotient by admissions.
 
(g)   Patient days represent the total number of days of care provided to inpatients.
 
(h)   Adjusted patient days is a general measure of combined inpatient and outpatient volume. We computed adjusted patient days by dividing gross patient revenue by gross inpatient revenue and then multiplying the quotient by patient days.
 
(i)   Average length of stay (days) represents the average number of days inpatients stay in our hospitals.
 
(j)   We computed occupancy by dividing patient days by the number of days in the period and then dividing the quotient by the number of staffed and available beds.