EX-99.3 4 g95866exv99w3.txt EX-99.3 EXECUTIVE SUMMARY - HISTORICAL FINANCIAL INFORMATION Exhibit 99.3 BEHAVIORAL HEALTHCARE CORPORATION The following historical financial results of Behavioral Healthcare Corporation are unaudited, preliminary and subject to change upon completion of an audit. HISTORICAL FINANCIAL RESULTS - BHC
TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED MARCH 31, ---------------------------------- ---------------------------- ($ in millions) 2002 2003 2004 2004 2005 LTM 3/31/05 --------------- -------- -------- -------- ------- -------- ----------- REVENUE $ 241.9 $ 267.6 $ 294.3 $ 73.1 $ 79.9 $ 301.1 Salaries/Wages $ 134.3 $ 148.4 $ 167.2 $ 41.3 $ 44.4 $ 170.4 Professional Fees 28.3 29.2 32.7 8.1 7.7 32.4 Supplies 13.5 14.5 15.6 3.8 4.1 15.9 Rentals/Leases 5.2 5.5 5.9 1.4 1.3 5.8 Provision for Bad Debts 6.0 6.2 7.2 2.1 2.6 7.7 Other Operating Expenses 12.6 13.1 14.8 3.2 3.4 14.9 Depreciation and Amortization 2.2 2.5 3.7 0.4 1.2 4.4 Interest Expense, Net 8.5 4.9 2.9 1.7 (0.9) 0.2 Management Fees 18.4 12.3 16.5 4.3 3.2 15.4 Impairment / Restructuring 0.1 - - - - - Loss (Gain) on Divestitures (1.2) (0.6) - - - - Other Expenses 6.0 6.2 7.1 1.6 1.8 7.2 -------- -------- -------- ------- ------- -------- TOTAL EXPENSES $ 233.9 $ 242.2 $ 273.6 $ 68.0 $ 68.8 $ 274.3 Income from Continuing Operations before Income Taxes $ 8.0 $ 25.4 $ 20.7 $ 5.1 $ 11.2 $ 26.7 Provision for Income Taxes 4.3 10.8 9.3 - - 9.3 Discontinued Operations 1.6 1.7 3.9 0.6 0.2 3.5 NET INCOME $ 5.2 $ 16.3 $ 15.3 $ 5.7 $ 11.3 $ 20.9 -------- -------- -------- ------- ------- -------- ADJUSTED EBITDA $ 35.9 $ 44.5 $ 43.7 $ 11.6 $ 14.6 $ 46.8 % Margin 14.9% 16.6% 14.9% 15.8% 18.3% 15.5% ADJUSTED EBIT $ 33.7 $ 42.0 $ 40.0 $ 11.1 $ 13.4 $ 42.3 % Margin 13.9% 15.7% 13.6% 15.2% 16.8% 14.1% -------- -------- -------- ------- ------- --------
BEHAVIORAL HEALTHCARE CORPORATION, A WHOLLY-OWNED SUBSIDIARY OF ARDENT HEALTH SERVICES LLC RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) (in thousands)
THREE MONTHS ENDED TWELVE MONTHS ENDED MARCH 31, DECEMBER 31, ---------------------- ----------------------------------- LTM 2005 2004 2004 2003 2002 -------- -------- -------- -------- -------- -------- Income from continuing operations $ 17,413 $ 11,151 $ 5,100 $ 11,362 $ 14,573 $ 3,696 Provision for income taxes 9,340 - - 9,340 10,829 4,310 Interest expense 173 (932) 1,749 2,854 4,940 8,481 Depreciation and amortization 4,421 1,199 442 3,664 2,501 2,203 -------- -------- -------- -------- -------- -------- EBITDA $ 31,347 $ 11,418 $ 7,291 $ 27,220 $ 32,843 $ 18,690 -------- -------- -------- -------- -------- -------- Other expenses: Management Fee paid to Ardent 15,416 3,192 4,259 16,483 12,255 18,373 Impairment / Restructuring - - - - - 78 Loss / (Gain) on Divestiture - - - - (618) (1,208) -------- -------- -------- -------- -------- -------- Total other expenses $ 15,416 $ 3,192 $ 4,259 $ 16,483 $ 11,637 $ 17,243 -------- -------- -------- -------- -------- -------- Adjusted EBITDA (a) $ 46,763 $ 14,610 $ 11,550 $ 43,703 $ 44,480 $ 35,933 ======== ======== ======== ======== ======== ========
(a) EBITDA and adjusted EBITDA are non-GAAP financial measures. EBITDA is defined as net income (loss) before discontinued operations, interest expense (net of interest income), income taxes, depreciation and amortization. Adjusted EBITDA is defined as net income (loss) before discontinued operations, interest expense (net of interest income), income taxes, depreciation, amortization, stock compensation and other items included in the caption above labeled "Other expenses." These other expenses may occur in future periods but the amounts recognized can very significantly from period to period and do not directly relate to the ongoing operations of our health care facilities. BHC's management relies on EBITDA and adjusted EBITDA as the primary measures to review and assess operating performance of its facilities and their management teams. BHC believes it is useful to investors to provide disclosures of its operating results on the same basis as that used by management. Management and investors also review EBITDA and adjusted EBITDA to evaluate BHC's overall performance and to compare BHC's current operating results with corresponding periods and with other companies in the health care industry. You should not consider EBITDA and adjusted 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. Because EBITDA and adjusted EBITDA are not measures of financial performance under accounting principles generally accepted in the United States and are susceptible to varying calculations, they may not be comparable to similarly titled measures of other companies.