LEWISVILLE, Texas, July 23, 2015 /PRNewswire/ -- Adeptus
Health Inc. (NYSE: ADPT) ("ADPT" or the "Company"), the
largest operator of freestanding emergency rooms in the U.S.,
announced its results for the second quarter ended June 30, 2015. All comparisons included in this
release are for the same period in the prior year, unless otherwise
noted.
Second Quarter 2015 Highlights:
- Systemwide net patient services revenue was $104.5 million versus $44.2 million in prior year, an increase of
136%;
- Net operating revenue was $89.6
million versus $44.2 million
in prior year, an increase of 103%;
- Adjusted EBITDA was $22.9 million
versus $5.9 million in prior year, an
increase of 286%;
- Adjusted earnings per share was $0.44 and GAAP earnings per share was
$0.97
- Net income attributable to Adeptus Health Inc. was $10.6 million;
- Cash flow from operating activities was $13.0 million versus $0.3
million in prior year; and
- The Company opened six freestanding facilities during the
second quarter 2015.
2015 Guidance
Based on our strong performance in the second quarter of 2015
and continued full year growth plans including 24 freestanding
facilities and two new hospitals, we are again raising
guidance. We expect to generate systemwide net patient
services revenue, which includes revenue from our unconsolidated
joint ventures, of $400.0 million to $405.0 million for the full year 2015.
We expect Adjusted EBITDA of $69.0 million to $71.0 million and Adjusted earnings per share of
$1.10 to $1.15 for the full year
2015.
Results of Operations for the Second Quarter 2015
Thomas S. Hall, Chairman and CEO,
stated, "We are pleased with the second quarter results, which
reflect our continued strong growth momentum. During the quarter,
we opened six additional freestanding emergency rooms, entered into
a new partnership with University of
Colorado Health and grew our existing partnership with
Dignity Health in Arizona. As we
continue to execute on our strategic plan, both through expanding
our network of freestanding emergency rooms and forging
partnerships with leading healthcare providers, we are helping to
transform the delivery of emergency care in the U.S."
So far this year, ADPT has opened 15 new facilities, including
12 freestanding emergency facilities in Texas and Colorado, and its first hospital and two
freestanding emergency facilities in Arizona with partner, Dignity Health. In July,
as part of its partnership with University of
Colorado Health, its 13 freestanding emergency rooms in
Colorado were rebranded as UC
Health Emergency Room and construction began on two hospitals.
For the second quarter of 2015, ADPT generated total net
operating revenue of $89.6 million,
an increase of 103%. Net operating revenue excludes revenue from 13
facilities in Colorado and the
Arizona hospital and its
freestanding facility, which are accounted for as equity method
investments. The increase was primarily attributable to the impact
of patient volumes from the expansion of the number of freestanding
facilities from 38 to 68 and annual gross charge increases.
Adjusted EBITDA increased 286% to $22.9
million. This increase was primarily attributable to a
$45.4 million increase in net
operating revenue, partially offset by increases in salaries, wages
and benefits and other costs related to our growth initiatives. See
"Non-GAAP Financial Measures Description and Reconciliation" and
"Reconciliation of Adjusted EBITDA to Net Income (Loss)" below for
further information related to Adjusted EBITDA and its
reconciliation to net income (loss).
ADPT generated net income of $27.7
million for the quarter, of which $10.6 million was attributable to Adeptus Health
Inc., compared to a net loss of $9.4
million from the prior year, of which $2.0 million was attributable to Adeptus Health
Inc. The increase in net income was due to an increase of
$45.4 million in net operating
revenue, coupled with a gain recognized on the contribution and
change of control of previously owned freestanding facilities to
the joint venture with University of
Colorado Health. This increase was partially offset by
increases in salaries, wages and benefits and other costs related
to our growth initiatives and an increase in depreciation and
amortization expense.
Adjusted earnings per share was $0.44 per share and GAAP earnings per share was
$0.97 per share for the quarter.
Adjusted earnings per share is calculated using a weighted average
of both Class A and Class B common shares outstanding, which was an
aggregate of 20,766,094 common shares at June 30, 2015. Adjustments for the quarter
include a $24.3 million gain
recognized on the contribution of existing freestanding facilities
to the joint venture with University of
Colorado Health, $2.0 million
of preopening costs associated with new facility openings,
$0.6 million of stock compensation
expense, $1.0 million related to
public offerings of our Class A common stock and $0.8 million of other costs associated with our
growth initiatives and an adjustment for taxes in order to
establish a normalized tax rate of 35% for comparability purposes.
See "Non-GAAP Financial Measures Description and Reconciliation"
and "Earnings Per Share Reconciliation" below for further
information related to Adjusted earnings per share and its
reconciliation to net income (loss).
Systemwide Financial Results
For the second quarter of 2015, ADPT generated systemwide net
patient services revenue of $104.5
million, an increase of 136%. The increase was primarily
attributable to the impact of increased patient volumes from the
expansion of the number of freestanding facilities from 38 to 68,
annual gross charge increases and the opening of the Dignity Health
Arizona General Hospital, a full service general hospital located
in Laveen, Arizona.
As of June 30, 2015, 13
freestanding facilities associated with our joint venture with
University of Colorado Health and our
Arizona hospital and its
freestanding facility associated with our joint venture with
Dignity Health were accounted for using the equity method. For
consolidated subsidiaries, the Company's financial statements
reflect 100% of the revenues and expenses for these subsidiaries,
after elimination of intercompany transactions and accounts. For
our unconsolidated joint ventures, consolidated statements of
operations reflect those earnings in two line items:
- Equity in earnings of unconsolidated joint ventures, which
represents our share of the net income or loss of each equity
method joint venture based on our ownership percentage; and
- Management and contract services revenues, which represent the
Company's combined income from management and contract services
that are earned from managing the day-to-day operations and
providing contract staffing of the facility.
As a result of this accounting treatment in our reported
results, management supplementally focuses on non-GAAP systemwide
metrics to analyze the results of operations. These systemwide
metrics include systemwide net patient services revenue. Systemwide
metrics treat our unconsolidated facilities as if they were
consolidated. While the revenues earned at the unconsolidated
facilities are not recorded in our consolidated financial
statements, management believes systemwide net patient services
revenue growth is important to understand the Company's financial
performance because it is used to interpret the sources of our
growth and provide a growth metric incorporating the revenues
earned by all affiliated facilities, regardless of the accounting
treatment. As we execute on our strategy of partnering with health
systems, management expects the number of our facilities accounted
for under the equity method to increase relative to the total
number of affiliated facilities.
Liquidity
At the end of the second quarter, the Company had cash of
$46.1 million and $9.5 million available under its revolving credit
facility. Net cash flow from operations was $13.0 million for the second quarter. Prior
to the expiration of the delayed draw component of its credit
facility, the Company borrowed an additional $30.0 million in the second quarter. At
June 30, 2015, the Company had total
long-term debt and capital lease obligations of $159.0 million and debt net of cash of
$112.9 million.
Market Outlook
We are maintaining the growth of our freestanding emergency room
network at an expected rate of opening 24 new sites per year,
including both owned and joint venture facilities. Our second
hospital, located in Carrollton,
Texas, a Dallas-Ft Worth
suburb, remains on schedule to open later this year.
ADPT's growth is addressing the shortage of quality emergency
medical care in the U.S. As the most recent American College
of Emergency Physicians (ACEP) survey highlights, emergency visits
are on the rise. Respondents noted that this rise is combined in
part with an increase in the acuity of patients' injuries and/or
illnesses. Again, this underscores the growing need for additional
access points to high quality, 24/7 emergency care. Our
facilities offer just that with convenient neighborhood
locations.
"Our network of freestanding emergency rooms and partnerships
with leading healthcare systems, such as Dignity Health and UC
Health, provides us with flexibility in addressing the unmet need
for expanded access to emergency medical care. We are continuously
talking to other healthcare systems around the country about how we
can help them bring improved access to the highest quality
emergency care to the communities they serve," added Hall.
Conference Call
A live audio webcast to present the second quarter results will
take place today at 11:00am (Eastern
Time), hosted by Thomas S.
Hall, Chairman and CEO and Timothy
Fielding, CFO.
The audio webcast will be available by accessing:
https://www.webcaster4.com/Webcast/Page/1069/9380
Following the call, an archived recording of the replay will
also be available on the Adeptus Health Investor Relations page for
30 days:
http://ir.adeptushealth.com/events-and-presentations/events/default.aspx
About Adeptus Health Inc.
Adeptus Health (NYSE:ADPT) is a leading patient-centered
healthcare organization expanding access to the highest quality
emergency medical care through its network of freestanding
emergency rooms and partnerships with premier healthcare
providers. In Texas, Adeptus Health owns and operates First
Choice Emergency Room, the nation's largest and oldest network of
independent freestanding emergency rooms. In Colorado, in partnership with University of Colorado Health, Adeptus Health
operates UCHealth Emergency Rooms. In Arizona, with Dignity Health, the company owns
and operates Dignity Health Arizona General Hospital and
freestanding emergency rooms. All Adeptus Health freestanding
facilities are fully equipped emergency rooms with a complete
radiology suite of diagnostic technology (CT scanner, ultrasound,
and digital X-ray), on-site laboratory, and staffed with
board-certified physicians and emergency trained registered nurses.
According to patient feedback collected by Press Ganey Associates
Inc., Adeptus Health provides the highest quality emergency medical
care and received the 2013 and 2014 Press Ganey Guardian of
Excellence Award for exceeding the 95th percentile in patient
satisfaction nationwide. For more information please visit us on
the web at adhc.com.
|
Media
Contact:
|
Jackie
Zupsic
Hill & Knowlton
Strategies
Jackie.Zupsic@hkstrategies.com
Tel: (212) 885 –
0590
|
|
|
Investor Relations
Contact:
|
Susan A.
Noonan
S.A. Noonan
Communications
susan@sanoonan.com
Tel: (212) 966 –
3650
|
Forward-Looking Statements
Certain statements and information herein may be deemed to be
"forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may include, but are not limited to, statements relating
to our guidance, objectives, plans and strategies, and all
statements (other than statements of historical facts) that address
activities, events or developments that we intend, expect, project,
believe or anticipate will or may occur in the future. Any
forward-looking statements herein are made as of the date of this
press release, and ADPT undertakes no duty to update or revise any
such statements except as required by the federal securities laws.
Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties. Important factors that
could cause actual results, developments and business decisions to
differ materially from forward-looking statements are described in
ADPT's filings with the U.S. Securities and Exchange Commission
("SEC") from time to time and which are accessible on the SEC's
website at www.sec.gov, including in the section entitled "Risk
Factors" in the Company's Form 10-K for the fiscal year ended
December 31, 2014. Among the factors
that could cause future results to differ materially from those
provided in this press release are: our ability to implement our
growth strategy; our ability to maintain sufficient levels of cash
flow to meet growth expectations; our ability to protect our brand;
federal and state laws and regulations relating to our facilities,
which could lead to the incurrence of significant penalties by us
or require us to make significant changes to our operations; our
ability to locate available facility sites on terms acceptable to
us; competition from hospitals, clinics and other emergency care
providers; our dependence on payments from third-party payors; our
ability to source and procure new products and equipment to meet
patient preferences; our reliance on Medical Properties Trust
("MPT") and the MPT Master Funding and Development Agreements;
disruptions in the global financial markets leading to difficulty
in borrowing sufficient amounts of capital to finance the carrying
costs of inventory to pay for capital expenditures and operating
costs; our ability or the ability of our healthcare system partners
to negotiate favorable contracts or renew existing contracts with
third-party payors on favorable terms; significant changes in our
payor mix or case mix resulting from fluctuations in the types of
cases treated at our facilities; significant changes in the rules,
regulations and systems governing Medicare and Medicaid
reimbursements; material changes in IRS revenue rulings, case law
or the interpretation of such rulings; shortages of, or quality
control issues with, emergency care-related products, equipment and
medical supplies that could result in a disruption of our
operations; the intense competition we face for patients, physician
use of our facilities, strategic relationships and commercial payor
contracts; the fact that we are subject to significant malpractice
and related legal claims; the growth of patient receivables or the
deterioration in the ability to collect on those accounts; the
impact on us of PPACA, which represents a significant change to the
healthcare industry; and ensuring our continued compliance with
HIPAA, which could require us to expend significant resources and
capital; and the factors discussed in the section entitled "Risk
Factors" in the Company's Form 10-K for the fiscal year ended
December 31, 2014.
Non-GAAP Financial Measures Description and
Reconciliation
This press release includes presentations of Adjusted EBITDA,
which is defined as net income before interest, taxes, depreciation
and amortization, further adjusted to eliminate the impact of
certain additional items, including, advisory services paid to our
Sponsor, facility pre-opening expenses, management recruiting
expenses, stock compensation expense and other non-recurring costs
or gains.
This press release also includes presentation of Adjusted
earnings (loss) per share, which is defined as earnings (loss) per
share related to the Company's overall operation, including
controlling and non-controlling interests, as adjusted to exclude
certain additional items, including, advisory services paid to our
Sponsor, facility preopening expenses, management recruiting
expenses, stock compensation expense and other non-recurring costs
or gains and an adjustment for taxes in order to establish a
normalized tax rate of 35% for comparability purposes, divided by
the aggregate number of shares of Class A and Class B common stock
outstanding as of the end of the period.
In addition, this press release presents systemwide metrics to
analyze the results of operations. These systemwide metrics include
systemwide net patient services revenue. Systemwide metrics
treat our unconsolidated facilities as if they were
consolidated.
These non-GAAP financial measures, Adjusted EBITDA, Adjusted
earnings (loss) per share and systemwide metrics, are commonly used
by management and investors as performance measures. The Company's
non-GAAP financial measures are not considered measures of
financial performance under U.S. generally accepted accounting
principles (GAAP), and the items excluded therefrom are significant
components in understanding and assessing our financial
performance. These non-GAAP financial measures should not be
considered in isolation or as an alternative to GAAP measures such
as net income, cash flows provided by or used in operating,
investing or financing activities or other financial statement data
presented in our consolidated financial statements as an indicator
of financial performance. Reconciliations of non-GAAP financial
measures are provided in this press release. Since these
non-GAAP financial measures are not measures determined in
accordance with GAAP and are susceptible to varying calculations,
these measures, as presented, may not be comparable to other
similarly titled measures of other companies.
Adeptus Health
Inc.
Condensed
Consolidated Statements of Operations and Other
Information
(unaudited; in
thousands, except shares, per share data and other
information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
Patient service
revenue
|
$ 104,363
|
|
$ 51,946
|
|
$ 200,265
|
$ 96,475
|
Provision for bad
debt
|
(17,514)
|
|
(7,708)
|
|
(32,459)
|
(13,456)
|
Net patient service
revenue
|
86,849
|
|
44,238
|
|
167,806
|
83,019
|
Management and
contract services revenue
|
2,738
|
|
-
|
|
3,234
|
-
|
Total net operating
revenue
|
89,587
|
|
44,238
|
|
171,040
|
83,019
|
Equity in earnings of
unconsolidated joint ventures
|
3,621
|
|
-
|
|
2,927
|
-
|
Operating
expenses:
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
51,124
|
|
29,478
|
|
100,004
|
54,458
|
General and
administrative
|
11,370
|
|
11,302
|
|
21,834
|
17,522
|
Other operating
expenses
|
12,541
|
|
5,137
|
|
23,846
|
10,002
|
Depreciation and
amortization
|
4,523
|
|
3,393
|
|
9,279
|
6,450
|
Total operating
expenses
|
79,558
|
|
49,310
|
|
154,963
|
88,432
|
Income (loss) from
operations
|
13,650
|
|
(5,072)
|
|
19,004
|
(5,413)
|
Other income
(expense):
|
|
|
|
|
|
|
Gain on contribution
to joint venture
|
24,250
|
|
-
|
|
24,250
|
-
|
Interest
expense
|
(3,898)
|
|
(4,319)
|
|
(7,172)
|
(6,525)
|
Total other income
(expense)
|
20,352
|
|
(4,319)
|
|
17,078
|
(6,525)
|
Income (loss) before
provision for income taxes
|
34,002
|
|
(9,391)
|
|
36,082
|
(11,938)
|
Provision for income
taxes
|
6,328
|
|
38
|
|
6,806
|
170
|
Net income
(loss)
|
27,674
|
|
(9,429)
|
|
29,276
|
(12,108)
|
Less: Net income
(loss) attributable to the non-controlling interest
|
17,040
|
|
(7,413)
|
|
18,048
|
(10,092)
|
Net income (loss)
attributable to Adeptus Health Inc.
|
$ 10,634
|
|
$ (2,016)
|
|
$ 11,228
|
$ (2,016)
|
Net income (loss) per
share of Class A common stock:
|
|
|
|
|
|
|
Basic
|
$ 0.97
|
|
$ (0.21)
|
|
$ 1.08
|
$ (0.21)
|
Diluted
|
$ 0.97
|
|
$ (0.21)
|
|
$ 1.08
|
$ (0.21)
|
Weighted average
shares of Class A common stock:
|
|
|
|
|
|
|
Basic
|
10,953,138
|
|
9,809,160
|
|
10,432,882
|
9,809,160
|
Diluted
|
10,953,138
|
|
9,809,160
|
|
10,432,882
|
9,809,160
|
|
|
|
|
|
|
|
Other
information
|
|
|
|
|
|
|
Number of systemwide
facilities, including one hospital
|
69
|
|
38
|
|
69
|
38
|
Adeptus Health
Inc. Reconciliation of Adjusted EBITDA to Net Income
(Loss) (unaudited; in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
Net income
(loss)
|
$ 27,674
|
$ (9,429)
|
|
$ 29,276
|
$ (12,108)
|
Depreciation and
amortization
|
4,929
|
3,393
|
|
9,685
|
6,450
|
Interest
expense
|
3,898
|
4,319
|
|
7,172
|
6,525
|
Provision for income
taxes
|
6,328
|
38
|
|
6,806
|
170
|
Gain on contribution
to joint venture
|
(24,250)
|
-
|
|
(24,250)
|
-
|
Advisory Services
Arrangement fees and expenses
|
-
|
155
|
|
-
|
293
|
Preopening
expenses
|
1,991
|
1,600
|
|
4,089
|
3,008
|
Management recruiting
expenses
|
185
|
56
|
|
185
|
156
|
Stock compensation
expense
|
608
|
179
|
|
1,157
|
338
|
Public offering
expenses
|
993
|
4,998
|
|
993
|
4,998
|
Other
|
584
|
634
|
|
1,090
|
1,206
|
Total
adjustments
|
(4,734)
|
15,372
|
|
6,927
|
23,144
|
Adjusted
EBITDA
|
$ 22,940
|
$ 5,943
|
|
$ 36,203
|
$ 11,036
|
Earnings Per Share
Reconciliation (unaudited; in thousands, except
shares, per share data and other information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
June
30,
|
June
30,
|
|
2015
|
2014
|
|
2015
|
2014
|
Weighted average
common shares outstanding
|
|
|
|
|
|
Class A common
shares
|
10,953,138
|
9,809,160
|
|
10,432,882
|
9,809,160
|
Class B common
shares
|
9,812,956
|
10,741,839
|
|
10,294,067
|
10,741,839
|
Total Class A and B
common shares
|
20,766,094
|
20,550,999
|
|
20,726,949
|
20,550,999
|
|
|
|
|
|
|
Net income (loss)
attributable to Adeptus Health Inc.
|
$ 10,634
|
$ (2,016)
|
|
$ 11,228
|
$ (2,016)
|
Net income (loss)
attributable to non-controlling interest
|
17,040
|
(7,413)
|
|
18,048
|
(10,092)
|
Total net
income
|
27,674
|
(9,429)
|
|
29,276
|
(12,108)
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
Gain on
contribution to joint venture
|
(24,250)
|
-
|
|
(24,250)
|
-
|
Preopening
expenses
|
1,991
|
1,600
|
|
4,089
|
3,008
|
Stock
compensation expense
|
608
|
179
|
|
1,157
|
338
|
Public
offering costs
|
993
|
4,998
|
|
993
|
4,998
|
Other
|
769
|
845
|
|
1,275
|
1,655
|
Total
adjustments
|
(19,889)
|
7,622
|
|
(16,736)
|
9,999
|
Tax impact of
adjustments (1)
|
6,961
|
(2,668)
|
|
5,858
|
(3,500)
|
Tax adjustment
resulting from applying effective tax rate
(2)
|
(5,573)
|
3,325
|
|
(5,823)
|
4,348
|
Adjusted net income
(loss)
|
9,173
|
(1,150)
|
|
12,575
|
(1,261)
|
Adjusted net income
(loss) per share
|
$ 0.44
|
$ (0.06)
|
|
$ 0.61
|
$ (0.06)
|
|
|
|
|
|
|
|
|
(1)
Reflects the removal of the tax benefit associated with the
adjustments
|
|
(2)
Represents adjusting to a normalized effective tax rate of
35%
|
|
Systemwide Net
Patient Services Revenue (unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Patient Services
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
facilities
|
|
$
|
86,849
|
|
$
|
44,238
|
|
$
|
167,806
|
|
$
|
83,019
|
Unconsolidated joint
ventures
|
|
|
17,659
|
|
|
—
|
|
|
20,662
|
|
|
—
|
Systemwide net patient
services revenue
|
|
$
|
104,508
|
|
$
|
44,238
|
|
$
|
188,468
|
|
$
|
83,019
|
Adeptus Health
Inc. Condensed Consolidated Balance
Sheets (in thousands)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
(unaudited)
|
|
(audited)
|
Current
assets
|
|
|
|
Cash
|
$ 46,129
|
|
$ 2,002
|
Restricted
cash
|
7,804
|
|
4,795
|
Accounts
receivable, less allowance for doubtful accounts of $34,892 and
$13,068, respectively
|
46,338
|
|
37,422
|
Other
receivables and current assets
|
19,428
|
|
17,137
|
Medical supplies
inventory
|
3,607
|
|
4,287
|
Total current
assets
|
123,306
|
|
65,643
|
Property and
equipment, net
|
74,525
|
|
93,892
|
Investment in
unconsolidated joint ventures
|
41,610
|
|
2,100
|
Deposits
|
722
|
|
1,772
|
Deferred tax
asset
|
70,577
|
|
34,084
|
Intangibles,
net
|
19,125
|
|
20,015
|
Goodwill
|
61,009
|
|
61,009
|
Other long term
assets
|
4,423
|
|
4,303
|
Total assets
|
$ 395,297
|
|
$ 282,818
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
and accrued expenses
|
$ 21,280
|
|
$ 25,420
|
Accrued
compensation
|
13,057
|
|
13,521
|
Current
maturities of long-term debt
|
3,759
|
|
1,816
|
Current
maturities of capital lease obligations
|
91
|
|
81
|
Deferred
rent
|
769
|
|
607
|
Total current
liabilities
|
38,956
|
|
41,445
|
Long-term debt,
less current maturities
|
151,166
|
|
104,982
|
Payable to
related parties pursuant to tax receivable agreement
|
71,604
|
|
30,039
|
Capital lease
obligation, less current maturities
|
4,007
|
|
4,056
|
Deferred
rent
|
2,928
|
|
2,416
|
Total
liabilities
|
268,661
|
|
182,938
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
|
|
|
Preferred stock,
par value $0.01 per share; 10,000,000 shares authorized and zero
shares issued and outstanding at June 30, 2015
|
-
|
|
-
|
Class A common
stock, par value $0.01 per share; 50,000,000 shares authorized,
11,563,069 and 9,845,016 shares issued and outstanding at June 30,
2015 and December 31, 2014, respectively
|
116
|
|
98
|
Class B common
stock, par value $0.01 per share; 20,000,000 shares authorized,
9,208,227 and 10,781,153 shares issued and outstanding at June 30,
2015 and December 31, 2014, respectively
|
92
|
|
108
|
Additional paid
in capital
|
51,698
|
|
51,238
|
Accumulated
other comprehensive loss
|
(91)
|
|
(74)
|
Retained
earnings (deficit)
|
4,912
|
|
(3,351)
|
Non-controlling
interest
|
69,909
|
|
51,861
|
Total shareholders'
equity
|
126,636
|
|
99,880
|
Total liabilities and
shareholders' equity
|
$ 395,297
|
|
$ 282,818
|
Adeptus Health
Inc. Condensed Consolidated Statements of Cash
Flows (unaudited; in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
June
30,
|
|
June
30,
|
June
30,
|
|
|
2015
|
2014
|
|
2015
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 27,674
|
$ (9,429)
|
|
$ 29,276
|
$ (12,108)
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
Loss from the disposal or
impairment of assets
|
|
68
|
-
|
|
68
|
2
|
Depreciation and
amortization
|
|
4,523
|
3,393
|
|
9,279
|
6,450
|
Deferred tax
benefit
|
|
4,122
|
-
|
|
4,377
|
-
|
Amortization of deferred
loan costs
|
|
249
|
255
|
|
468
|
453
|
Provision for bad
debts
|
|
17,514
|
7,708
|
|
32,459
|
13,456
|
Gain on contribution to
unconsolidated joint ventures
|
|
(24,250)
|
-
|
|
(24,250)
|
-
|
Equity in earnings of
unconsolidated joint ventures
|
|
(3,621)
|
-
|
|
(2,927)
|
-
|
Stock-based
compensation
|
|
608
|
179
|
|
1,157
|
338
|
Changes in operating assets
and liabilities
|
|
|
|
|
|
|
Restricted
cash
|
|
64
|
(2,873)
|
|
(3,009)
|
(3,901)
|
Accounts
receivable
|
|
(14,475)
|
(12,393)
|
|
(41,375)
|
(20,443)
|
Other
receivables and current assets
|
|
(2,060)
|
2,667
|
|
(951)
|
1,334
|
Medical
supplies inventory
|
|
(34)
|
(584)
|
|
(160)
|
(1,006)
|
Other
long-term assets
|
|
(127)
|
13
|
|
(110)
|
28
|
Accounts
payable and accrued expenses
|
|
2,864
|
5,299
|
|
(4,140)
|
3,770
|
Accrued
compensation
|
|
(1,007)
|
5,517
|
|
(464)
|
3,820
|
Deferred
rent
|
|
924
|
500
|
|
1,377
|
1,096
|
Net
cash provided by (used in) operating activities
|
|
13,036
|
252
|
|
1,075
|
(6,711)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Deposits
|
|
310
|
(355)
|
|
985
|
(239)
|
Proceeds from the sale
of property and equipment
|
|
10
|
2,003
|
|
1,527
|
2,003
|
Capital
expenditures
|
|
(1,650)
|
(11,723)
|
|
(3,270)
|
(22,020)
|
Net cash used in investing activities
|
|
(1,330)
|
(10,075)
|
|
(758)
|
(20,256)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from initial
public offering, net of underwriters fees and expenses
|
|
-
|
96,226
|
|
-
|
96,226
|
Proceeds from long-term
borrowings
|
|
30,000
|
86,955
|
|
54,000
|
93,955
|
Payment of deferred
loan costs
|
|
(415)
|
(553)
|
|
(495)
|
(591)
|
Payments on
borrowings
|
|
(6,049)
|
(69,209)
|
|
(6,691)
|
(69,377)
|
Payments of capital
lease obligations
|
|
(20)
|
(5)
|
|
(39)
|
(23)
|
Payment of
dividends
|
|
-
|
(60,000)
|
|
-
|
(60,000)
|
Tax distribution to
unit holders
|
|
(2,965)
|
(9)
|
|
(2,965)
|
(9)
|
Contribution from
original owner
|
|
-
|
167
|
|
-
|
167
|
Net cash provided by financing activities
|
|
20,551
|
53,572
|
|
43,810
|
60,348
|
Net increase in cash
and cash equivalents
|
|
32,257
|
43,749
|
|
44,127
|
33,381
|
Cash, beginning of
period
|
|
13,872
|
1,127
|
|
2,002
|
11,495
|
Cash, end of
period
|
|
$ 46,129
|
$ 44,876
|
|
$ 46,129
|
$ 44,876
|
Logo - http://photos.prnewswire.com/prnh/20140625/121364
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adeptus-health-reports-second-quarter-2015-results-and-raises-full-year-guidance-300117486.html
SOURCE Adeptus Health Inc.