EX-99.5 7 g83311exv99w5.txt EX-99.5 SECTION OF OM(SELECTED CONSOLIDATED) EXHIBIT 99.5 THE BROWN SCHOOLS The following table sets forth selected historical financial and operating data of The Brown Schools for, or as of the end of, the three months ended March 31, 2003 and 2002 and each of the years ended December 31, 2002, 2001 and 2000. The selected historical financial data as of and for each of the years ended December 31, 2002, 2001 and 2000 were derived from the audited consolidated financial statements of The Brown Schools. The selected historical financial data as of and for the three months ended March 31, 2003 and 2002 were derived from the unaudited condensed consolidated financial statements of The Brown Schools. These unaudited condensed consolidated financial statements include all adjustments necessary (consisting of normal recurring accruals) for a fair presentation of the financial position and the results of operations for these periods. Operating results for the three months ended March 31, 2003, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2003. You should read this table in conjunction with The Brown Schools' consolidated financial statements and notes thereto and "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Results of Operations -- The Brown Schools" contained elsewhere in this offering memorandum.
THREE MONTHS ENDED MARCH 31, YEAR ENDED DECEMBER 31, ------------------- ------------------------------ 2003 2002 2002 2001 2000 -------- -------- -------- -------- -------- (DOLLARS IN THOUSANDS, EXCEPT OPERATING DATA) STATEMENT OF OPERATIONS DATA: Revenue................................... $ 18,246 $ 19,271 $ 77,994 $ 78,078 $ 67,064 Costs and expenses: Salaries, wages and employee benefits... 10,465 10,966 42,438 42,759 36,960 Other operating expenses(1)............. 6,430 6,547 26,534 27,645 26,876 Provision for bad debts................. 408 400 1,789 2,079 1,297 Depreciation and amortization........... 338 363 1,800 1,672 1,853 Interest expense........................ 1,671 1,058 6,482 3,814 2,950 Other expenses(2)....................... 458 -- -- 68 51 -------- -------- -------- -------- -------- Total costs and expenses............. 19,770 19,334 79,043 78,037 69,987 Income (loss) from continuing operations before income taxes..................... $ (1,524) $ (63) $ (1,049) $ 41 $ (2,923) ======== ======== ======== ======== ======== Net income (loss)......................... $ (1,524) $ (63) $ (1,049) $ 41 $ (2,923) ======== ======== ======== ======== ======== BALANCE SHEET DATA (END OF PERIOD): Cash and cash equivalents................. $ 2 $ 11 $ 2 $ 4 $ 9 Working capital........................... 1,314 5,671 2,130 1,828 2,305 Property, plant and equipment, net........ 15,547 18,461 16,495 17,305 17,487 Total assets.............................. 30,201 36,813 32,491 33,526 33,114 Stockholders' equity...................... 19,928 19,466 21,722 22,655 24,041 OTHER FINANCIAL DATA: Capital expenditures...................... $ 644 246 $ 988 $ 1,568 $ 561 Net cash provided by operating activities.............................. 352 15 1,417 3,412 585 EBITDA(3)................................. 943 1,358 7,233 5,595 1,931
THREE MONTHS ENDED MARCH 31, YEAR ENDED DECEMBER 31, ------------------- ------------------------------ 2003 2002 2002 2001 2000 -------- -------- -------- -------- -------- (DOLLARS IN THOUSANDS, EXCEPT OPERATING DATA) OPERATING DATA: Number of facilities: Owned................................... 5 5 5 5 5 Leased.................................. 1 1 1 1 1 Number of licensed beds................... 879 869 885 869 869 Admissions................................ 1,430 1,531 5,463 5,564 4,503 Patient days.............................. 53,668 52,315 214,667 214,223 193,814 Average length of stay.................... 38 34 39 39 43
--------------- (1) Other operating expenses include rent expense which was $265, $236, $1,005, $962 and $718 for the three months ended March 31, 2003 and 2002, and each of the years ended December 31, 2002, 2001 and 2000, respectively. (2) Other expenses relate to losses on sales of assets. (3) EBITDA is defined as income from continuing operations before income taxes, interest expense (net of interest income), depreciation, amortization, and other items included in the caption above labeled "Other expenses" as more fully described in the accompanying reconciliation of EBITDA to income from continuing operations before income taxes. While you should not consider EBITDA in isolation or as a substitute for net income, operating cash flows or other cash flow statement data determined in accordance with accounting principles generally accepted in the United States, management understands that EBITDA is a commonly used analytical indicator within the health care industry and also serves as a measure of leverage capacity and debt service ability. In addition, we use EBITDA as the measure of operating profitability of its segments and their components. EBITDA, as presented, may not be comparable to similarly titled measures of other companies. The following are the components of EBITDA for the three months ended March 31, 2003 and 2002 and each of the years ended December 31, 2002, 2001 and 2000:
THREE MONTHS ENDED MARCH 31, YEAR ENDED DECEMBER 31, ---------------- -------------------------- 2003 2002 2002 2001 2000 ------- ------ ------- ------ ------- (IN THOUSANDS) Income (loss) from continuing operations before income taxes.................................. $(1,524) $ (63) $(1,049) $ 41 $(2,923) Interest expense................................ 1,671 1,058 6,482 3,814 2,950 Depreciation and amortization................... 338 363 1,800 1,672 1,853 Other expenses(2)............................... 458 -- -- 68 51 ------- ------ ------- ------ ------- EBITDA.......................................... $ 943 $1,358 $ 7,233 $5,595 $ 1,931 ======= ====== ======= ====== =======
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