Assets and Liabilities Held for Sale and Discontinued Operations (Tables)
|
12 Months Ended |
Jun. 30, 2023 |
Discontinued Operations and Disposal Groups [Abstract] |
|
Calculation of the Initial Gain on Sale of Controlling Interest in Subsidiary |
The following table shows calculation of the initial gain on Sale of HC LLC of $13.6 million:
|
|
|
|
|
(in thousands) |
|
January 3, 2023 |
|
Net cash proceeds, after transaction costs and distributions to non-controlling interests |
|
$ |
64,093 |
|
Fair value of shares of Quipt stock |
|
|
2,000 |
|
Indemnity escrow receivable attributable to GEG and subsidiaries |
|
|
320 |
|
Carrying value of non-controlling interest prior to sale (permanent equity) |
|
|
2,977 |
|
Carrying value of non-controlling interest prior to sale (temporary equity) |
|
|
2,977 |
|
Estimated future distributions of proceeds to non-controlling interests |
|
|
(1,144 |
) |
|
|
|
71,223 |
|
Less: Carrying value of net assets disposed |
|
|
57,671 |
|
Gain on Sale of HC LLC |
|
$ |
13,552 |
|
|
Reconciliation of Net Income from Discontinued Operations |
The following table provides a reconciliation of the Company’s net income from discontinued operations presented in the consolidated statements of operations:
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended June 30, |
|
(in thousands) |
|
2023 |
|
|
2022 |
|
Discontinued operations: |
|
|
|
|
|
|
Durable medical equipment sales and services revenue |
|
$ |
21,574 |
|
|
$ |
41,720 |
|
Durable medical equipment rental income |
|
|
11,874 |
|
|
|
21,738 |
|
Net revenue |
|
|
33,448 |
|
|
|
63,458 |
|
|
|
|
|
|
|
|
Cost of durable medical equipment sold and services |
|
|
(8,654 |
) |
|
|
(16,795 |
) |
Cost of durable medical equipment rentals |
|
|
(4,263 |
) |
|
|
(7,149 |
) |
Durable medical equipment other operating expenses |
|
|
(17,519 |
) |
|
|
(32,561 |
) |
Depreciation and amortization |
|
|
(783 |
) |
|
|
(1,737 |
) |
Transaction costs |
|
|
(2,462 |
) |
|
|
(582 |
) |
Interest expense |
|
|
(46 |
) |
|
|
(240 |
) |
Loss on extinguishment of debt |
|
|
(23 |
) |
|
|
(190 |
) |
Other (expense) income, net |
|
|
(50 |
) |
|
|
2 |
|
Gain on disposal of discontinued operations |
|
|
13,264 |
|
|
|
- |
|
Income before income taxes from discontinued operations |
|
|
12,912 |
|
|
|
4,206 |
|
Income tax benefit |
|
|
289 |
|
|
|
62 |
|
Net income from discontinued operations |
|
$ |
13,201 |
|
|
$ |
4,268 |
|
|
Reconciliation of Assets and Liabilities Held-for-Sale |
The following table provides a reconciliation of the assets and liabilities held for sale presented in the consolidated balance sheet as of June 30, 2022:
|
|
|
|
|
(in thousands) |
|
June 30, 2022 |
|
Cash and cash equivalents |
|
$ |
1,314 |
|
Accounts receivable |
|
|
5,867 |
|
Inventories |
|
|
898 |
|
Prepaid and other current assets |
|
|
385 |
|
Current assets held for sale |
|
$ |
8,464 |
|
|
|
|
|
Property and equipment, net |
|
$ |
521 |
|
Equipment held for rental, net |
|
|
7,504 |
|
Identifiable intangible assets, net |
|
|
5,921 |
|
Goodwill |
|
|
52,463 |
|
Right-of-use assets |
|
|
2,989 |
|
Other assets |
|
|
163 |
|
Non-current assets held for sale |
|
$ |
69,561 |
|
|
|
|
|
Accounts payable |
|
$ |
6,030 |
|
Accrued expenses and other current liabilities |
|
|
3,544 |
|
Deferred revenue |
|
|
1,218 |
|
Current portion of lease liabilities |
|
|
1,218 |
|
Current portion of equipment financing debt |
|
|
2,993 |
|
Current liabilities held for sale |
|
$ |
15,003 |
|
|
|
|
|
Lease liabilities, net of current portion |
|
$ |
1,903 |
|
Redeemable preferred stock of subsidiaries |
|
|
648 |
|
Non-current liabilities held for sale |
|
$ |
2,551 |
|
|