EX-99.2 3 g95980exv99w2.txt EX-99.2 SUMMARY HISTORICAL FINANCIAL AND OPERATING DATA ARDENT BEHAVIORAL Exhibit 99.2 ARDENT BEHAVIORAL The following table sets forth summary historical financial and operating data of Ardent Behavioral for, or as of the end of, each of the years ended December 31, 2002, 2003 and 2004 and each of the three months ended March 31, 2004 and 2005. The summary historical financial data as of and for each of the years ended December 31, 2002, 2003 and 2004 were derived from the audited combined financial statements of Ardent Behavioral included elsewhere in this offering memorandum. The summary historical financial data as of and for the three months ended March 31, 2004 and 2005 were derived from the unaudited condensed combined financial statements of Ardent Behavioral included elsewhere in this offering memorandum. These unaudited condensed combined 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, 2005 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2005.
THREE MONTHS YEAR ENDED DECEMBER 31, ENDED MARCH 31, ------------------------------ ------------------ 2002 2003 2004 2004 2005 -------- -------- -------- -------- ------- (DOLLARS IN THOUSANDS) INCOME STATEMENT DATA: Revenue.................................. $241,909 $267,568 $294,282 $ 73,134 $79,908 Costs and expenses: Salaries and benefits.................. 134,340 148,392 167,926 41,294 44,447 Other operating expenses(1)............ 65,646 68,469 74,606 18,210 18,298 Provision for doubtful accounts........ 5,990 6,227 7,245 2,080 2,553 Depreciation and amortization.......... 2,203 2,501 3,664 619 1,199 Interest, net.......................... 8,481 4,940 2,854 1,749 (932) Other expenses(2)...................... 17,243 11,637 16,483 4,259 3,192 -------- -------- -------- -------- ------- Total expenses...................... 233,903 242,166 272,778 68,211 68,757 -------- -------- -------- -------- ------- Income from continuing operations before income taxes........................... $ 8,006 $ 25,402 $ 21,504 $ 4,923 $11,151 ======== ======== ======== ======== ======= Net income............................... $ 7,814 $ 18,266 $ 15,739 $ 3,101 $ 7,058 ======== ======== ======== ======== ======= BALANCE SHEET DATA (END OF PERIOD): Cash and cash equivalents................ -- $ 1,822 $ 2,671 -- 2,354 Working capital.......................... -- 29,407 31,900 -- 35,953 Property and equipment, net.............. -- 76,562 83,355 -- 83,465 Total assets............................. -- 210,814 234,291 -- 242,473 Total debt............................... -- -- -- -- Total equity............................. -- 171,216 191,071 -- 198,129 OTHER FINANCIAL DATA: Capital expenditures..................... $ 6,425 $ 8,528 $ 10,457 $ 814 $ 1,309 Net cash provided by (used in) continuing operating activities................... 13,737 22,050 18,065 (468) 5,512 Adjusted EBITDA(3)....................... 35,933 44,480 50,750 11,015 14,610
THREE MONTHS YEAR ENDED DECEMBER 31, ENDED MARCH 31, ------------------------------ ------------------ 2002 2003 2004 2004 2005 -------- -------- -------- -------- ------- OPERATING DATA: Number of facilities..................... 19 20 20 20 20 Owned.................................. 19 20 20 20 20 Leased................................. -- -- -- -- -- Number of licensed beds.................. 1,840 1,986 1,993 1,993 1,981 Admissions............................... 31,456 33,474 37,162 9,497 9,982 Patient days............................. 455,828 481,317 514,069 126,872 136,540 Average length of stay................... 14 14 14 13 14
--------------- (1) Other operating expenses include professional fees, supplies expense, rent expense and other operating expenses. Rent expense was $3,229, $3,502, $3,564, $881 and $775 for each of the years ended December 31, 2002, 2003 and 2004 and the three months ended March 31, 2004 and 2005, respectively. (2) Other expenses include: (a) for the year ended December 31, 2002, impairment of long-lived assets and restructuring costs of $78; (b) for the years ended December 31, 2002 and 2003, a gain on divestitures of $1,208 and $618, respectively; (c) for the three months ended March 31, 2004 and 2005 and the years ended December 31, 2002, 2003 and 2004, management fees paid to Ardent of $4,259, $3,192, $18,373, $12,255 and $16,483, respectively. (3) EBITDA is a non-GAAP financial measure and is defined as net income before discontinued operations, interest expense (net of interest income), income taxes, depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure defined as EBITDA as adjusted for the other items. These other items may occur in future periods, but the amounts recognized can vary significantly from period to period and do not directly relate to ongoing operations of our health care facilities. Our management relies on EBITDA and Adjusted EBITDA as the primary measures to review and assess the operating performance of our inpatient facilities and their management teams. We believe it is useful to investors to provide disclosures of our operating results on the same basis as that used by management. Management and investors also review EBITDA and Adjusted EBITDA to evaluate our overall performance and to compare our 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 substitutes 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. The following are the components of EBITDA and Adjusted EBITDA for each of the years ended December 31, 2002, 2003 and 2004 and the three months ended March 31, 2004 and 2005:
THREE MONTHS YEAR ENDED DECEMBER 31, ENDED MARCH 31, --------------------------- ----------------- 2002 2003 2004 2004 2005 ------- ------- ------- ------- ------- (DOLLARS IN THOUSANDS) Net income........................... $ 7,814 $18,266 $15,739 $ 3,101 $ 7,058 Discontinued operations, net of taxes.............................. (1,880) (1,543) (2,394) (135) (101) Provision for income taxes........... 2,072 8,679 8,159 1,957 4,194 Interest, net........................ 8,481 4,940 2,854 1,749 (932) Depreciation and amortization........ 2,203 2,501 3,664 619 1,199 ------- ------- ------- ------- ------- EBITDA............................... 18,690 32,843 28,022 7,291 11,418 Other: Management fees paid to Ardent..... 18,373 12,255 16,483 4,259 3,192 Medicaid program payment adjustments for prior years at Fox Run Hospital................ -- -- 6,245 (535) -- Gain on divestitures............... (1,208) (618) -- -- -- Impairment of long-lived assets and restructuring costs............. 78 -- -- -- -- ------- ------- ------- ------- ------- Adjusted EBITDA...................... $35,933 $44,480 $50,750 $11,015 $14,610 ======= ======= ======= ======= =======