LEWISVILLE, Texas, July 21, 2016 /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, 2016. All comparisons included in this
release are for the same period in the prior year, unless otherwise
noted. See "Non-GAAP Financial Measures Description and
Reconciliation" for further information related to systemwide
revenue, Adjusted EBITDA and Adjusted earnings per share.
Second Quarter 2016 Highlights:
- Net operating revenue was $100.2
million versus $89.6 million
in prior year, an increase of 12%;
- Systemwide net patient services revenue was $142.4 million versus $104.5 million in prior year, an increase of
36%;
- Adjusted EBITDA was $22.5 million
versus $22.9 million in prior year, a
decrease of 2%;
- Net income attributable to Adeptus Health Inc. was $86.9 million versus $10.6
million in prior year;
- GAAP earnings per share was $5.80
and Adjusted earnings per share was $0.48;
- A gain of $185.3 million was
recognized as a result of the joint venture with Texas Health
Resources, one of the country's largest non-profit health
systems;
- Cash flow used in operating activities was $8.6 million versus $13.0
million provided by operating activities in prior year,
and;
- Systemwide same store volumes increased 4.3% and systemwide
same store revenue decreased 2.8% versus prior year.
2016 Guidance Reaffirmed
We continue to expect systemwide net patient services revenue,
which includes revenue from our unconsolidated joint ventures, of
$640.0 million to $670.0 million for
the full year 2016. We expect Adjusted EBITDA of $110.0 million to $115.0 million and Adjusted
earnings per share of $2.55 to $2.65
for the full year 2016.
Results of Operations for the Second Quarter 2016
Thomas S. Hall, Chairman and CEO,
stated, "Second quarter results were in-line with the preview we
provided in late May, despite unexpected softer volumes in June.
The volume weakness was primarily in markets where our facilities
are not operated as hospital outpatient departments (HOPDs). We
continue to execute on our HOPD strategy which is delivering
positive same store results in the Dallas/Fort Worth market. We anticipate
similar increases in patient volume with the upcoming HOPD
conversions in Denver, Colorado
Springs and Houston as the hospitals in those markets open
later this year."
Hall continued, "In May, we announced a landmark joint venture
with Texas Health Resources ("THR"), one of the country's largest
non-profit health systems, and all of our facilities in the
Dallas/Fort Worth market will be
rebranded as Texas Health before year end. As a direct result of
the joint venture, we recognized a $185.3
million gain on our contribution based upon a third party
valuation which further validates our business model."
For the second quarter of 2016, ADPT generated total net
operating revenue of $100.2 million,
an increase of 12%. From inception of each joint venture, net
operating revenue excludes revenue from unconsolidated facilities.
Net operating revenue excludes revenue from the 16 Colorado
freestanding facilities, the Arizona hospital and its seven freestanding
facilities, and the Dallas/Fort
Worth hospital and its 30 freestanding facilities, which are
accounted for as equity method investments. The increase was
primarily attributable to increases in management fees and contract
services revenue, the impact of patient volumes from both existing
and new consolidated freestanding facilities and annual gross
charge increases, offset by the deconsolidation of our Colorado and Dallas/Fort Worth locations due to the
UCHealth and THR joint ventures. Through June 30, 2016, ADPT has opened 12 new
freestanding emergency facilities in 2016.
ADPT generated net income of $148.2
million for the quarter, of which $86.9 million was attributable to Adeptus Health
Inc., compared to net income of $27.7
million from the prior year, of which $10.6 million was attributable to Adeptus Health
Inc. The increase in net income was due to an increase of
$10.6 million in net operating
revenue, a $2.1 million decrease in
interest expense, and a $185.3
million gain recognized on the contribution and change of
control of previously owned facilities to the joint venture with
THR. This increase was partially offset by a $1.2 million decrease in equity in earnings of
unconsolidated joint ventures, an increase of salaries, wages, and
benefits and other costs related to our growth initiatives and the
impact of deferred taxes associated with the gain recognized on the
contribution and change of control of previously owned facilities
to the joint venture with THR.
Adjusted EBITDA was $22.5 million
for the quarter compared to $22.9
million in prior year. This decrease was attributable to a
$1.2 million decrease in equity in
earnings of unconsolidated joint ventures and an increase of
salaries, wages, and benefits and other costs related to our growth
initiatives, offset by increases in management and contract
services revenue. See "Non-GAAP Financial Measures Description and
Reconciliation" and "Reconciliation of Adjusted EBITDA to Net
Income" below for further information related to Adjusted EBITDA
and its reconciliation to net income.
GAAP earnings per share was $5.80
per share and Adjusted earnings per share was $0.48 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 21,076,911 common shares at June 30, 2016. 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.
Systemwide Financial Results
For the second quarter of 2016, ADPT generated systemwide net
patient services revenue of $142.4
million, an increase of 36%. Additionally, systemwide same
store volumes increased 4.3% versus prior year and systemwide same
store revenue decreased 2.8%. Systemwide same store volume growth
was driven by the Dallas/Fort
Worth facilities. The decline in systemwide same store
revenues reflected softer volumes in non-HOPD markets in June. The
increase in systemwide net patient services revenue was primarily
attributable to the impact of increased patient volumes from the
expansion of the number of freestanding facilities from 68 to 93,
annual gross charge increases, and continued growth of our
hospitals and their hospital outpatient departments in Arizona and Texas.
As of June 30, 2016, our 16
Colorado freestanding facilities associated with our joint venture
with UCHealth, our Arizona
hospital and its seven freestanding facilities associated with our
joint venture with Dignity Health and our Dallas Fort Worth hospital and its 30
freestanding facilities associated with our joint venture with THR
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
$3.7 million and $23.8 million available under its revolving
credit facility. Net cash flow used in operations was
$8.6 million for the second quarter
compared to $13.0 million net cash
flow provided by operations in the prior year. At June 30, 2016, the Company had total long-term
debt and capital lease obligations of $137.6
million and debt net of cash of $133.8 million.
Market Outlook
The Company remains on track to open 27 new facilities in 2016,
including both owned and joint venture facilities. These include 24
new freestanding facility openings and three new hospitals – two in
Colorado and one in Houston, Texas.
"Through the expansion of our network of hospitals, freestanding
emergency rooms and partnerships with leading health systems, we
are continuing to transform the delivery of emergency care in the
U.S.," added Hall. "Partnerships remain a cornerstone of our growth
strategy. We have a healthy pipeline of partnership opportunities
and look forward to announcing additional partnerships as the year
progresses."
Conference Call
A live audio webcast to present the second quarter 2016 results
will take place today at 11:00 am (Eastern
Time), hosted by Thomas S.
Hall, Chairman and CEO, Timothy
Fielding, CFO, and Graham
Cherrington, President and COO.
The audio webcast will be available by accessing:
https://www.webcaster4.com/Webcast/Page/1069/15975
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.
Adeptus Health owns and operates First Choice Emergency Room, the
nation's largest and oldest network of freestanding emergency rooms
and owns and/or operates hospitals and freestanding facilities in
partnership with Texas Health Resources in Texas, UCHealth in Colorado, Dignity Health in Arizona, Ochsner Health System in Louisiana and Mount Carmel Health System in
Ohio. All Adeptus Health
freestanding facilities are fully equipped emergency rooms with a
complete radiology suite of diagnostic technology, on-site
laboratory, and staffed with board-certified physicians and
emergency trained registered nurses. For the last three years,
Adeptus Health has exceeded the 95th percentile in patient
satisfaction according to patient feedback collected nationwide by
Press Ganey Associates Inc. Adeptus Health also was named a 2016
Best Workplaces in Healthcare by Great Place to Work® and Fortune
Magazine. For more information please visit adhc.com.
Media
Contact:
|
Jackie
Zupsic
Hill & Knowlton
Strategies
Jackie.Zupsic@hkstrategies.com
Tel: (212) 885 –
0590
|
|
|
Investor
Relations
Contact:
|
Kevin
Ellich
Vice President,
Investor Relations
Kevin.Ellich@adhc.com
Tel: (972)
899-7062
|
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, 2015. 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, 2015.
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, facility preopening expenses,
stock compensation expense and other non-recurring costs, losses or
gains.
This press release also includes presentation of Adjusted
earnings per share, which is defined as earnings per share related
to the Company's overall operation, including controlling and
non-controlling interests, as adjusted to exclude certain
additional items, including, facility preopening expenses, stock
compensation expense and other non-recurring costs, losses 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 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 Income and Other
Information
|
(unaudited; in
thousands, except shares, per share data and other
information)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Patient service
revenue
|
$ 101,595
|
|
$ 104,363
|
|
$ 234,883
|
|
$ 200,265
|
Provision for bad
debt
|
(16,673)
|
|
(17,514)
|
|
(43,726)
|
|
(32,459)
|
Net patient service
revenue
|
84,922
|
|
86,849
|
|
191,157
|
|
167,806
|
Management and
contract services revenue
|
15,245
|
|
2,738
|
|
21,779
|
|
3,234
|
Total net operating
revenue
|
100,167
|
|
89,587
|
|
212,936
|
|
171,040
|
Equity in earnings of
unconsolidated joint ventures
|
2,435
|
|
3,621
|
|
4,936
|
|
2,927
|
Operating
expenses:
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
62,130
|
|
51,124
|
|
128,945
|
|
100,004
|
General and
administrative
|
13,015
|
|
11,370
|
|
29,279
|
|
21,834
|
Other operating
expenses
|
12,093
|
|
12,541
|
|
27,106
|
|
23,846
|
Depreciation and
amortization
|
3,412
|
|
4,523
|
|
7,783
|
|
9,279
|
Total operating
expenses
|
90,650
|
|
79,558
|
|
193,113
|
|
154,963
|
Income from
operations
|
11,952
|
|
13,650
|
|
24,759
|
|
19,004
|
Other income
(expense):
|
|
|
|
|
|
|
|
Gain on contribution
to joint venture
|
185,336
|
|
24,250
|
|
185,336
|
|
24,250
|
Interest
expense
|
(1,822)
|
|
(3,898)
|
|
(3,648)
|
|
(7,172)
|
Total other
income
|
183,514
|
|
20,352
|
|
181,688
|
|
17,078
|
Income before
provision for income taxes
|
195,466
|
|
34,002
|
|
206,447
|
|
36,082
|
Provision for income
taxes
|
47,270
|
|
6,328
|
|
50,388
|
|
6,806
|
Net income
|
148,196
|
|
27,674
|
|
156,059
|
|
29,276
|
Less: Net income
attributable to the non-controlling interest
|
61,248
|
|
17,040
|
|
64,579
|
|
18,048
|
Net income
attributable to Adeptus Health Inc.
|
$ 86,948
|
|
$ 10,634
|
|
$ 91,480
|
|
$ 11,228
|
Net income per share
of Class A common stock:
|
|
|
|
|
|
|
|
Basic
|
$ 5.80
|
|
$ 0.97
|
|
$ 6.23
|
|
$ 1.08
|
Diluted
|
$ 5.80
|
|
$ 0.97
|
|
$ 6.23
|
|
$ 1.08
|
Weighted average
shares of Class A common stock:
|
|
|
|
|
|
|
|
Basic
|
15,001,701
|
|
10,953,138
|
|
14,687,700
|
|
10,432,882
|
Diluted
|
15,001,701
|
|
10,953,138
|
|
14,687,700
|
|
10,432,882
|
|
|
|
|
|
|
|
|
Other
information
|
|
|
|
|
|
|
|
Consolidated
facilities
|
40
|
|
54
|
|
40
|
|
54
|
Equity method
facilities
|
55
|
|
15
|
|
55
|
|
15
|
Total systemwide
facilities, including hospitals
|
95
|
|
69
|
|
95
|
|
69
|
Adeptus Health
Inc.
|
Reconciliation of
Adjusted EBITDA to Net Income
|
(unaudited; in
thousands)
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Net income
|
$ 148,196
|
$ 27,674
|
$ 156,059
|
$ 29,276
|
Depreciation and
amortization(1)
|
5,206
|
4,929
|
10,015
|
9,685
|
Interest
expense
|
1,822
|
3,898
|
3,648
|
7,172
|
Provision for income
taxes
|
47,270
|
6,328
|
50,388
|
6,806
|
Gain on contribution
to joint venture
|
(185,336)
|
(24,250)
|
(185,336)
|
(24,250)
|
Preopening
expenses
|
3,294
|
1,991
|
5,234
|
4,089
|
Stock compensation
expense
|
1,221
|
608
|
2,309
|
1,157
|
Public
offering expenses
|
530
|
993
|
530
|
993
|
Duplicative billing
effort
|
-
|
-
|
208
|
-
|
Other
|
292
|
769
|
1,179
|
1,275
|
Total
adjustments
|
(125,701)
|
(4,734)
|
(111,825)
|
6,927
|
Adjusted
EBITDA
|
$ 22,495
|
$ 22,940
|
$ 44,234
|
$ 36,203
|
|
(1)
Includes the Company's proportionate share of depreciation and
amortization related to its joint ventures
|
Adjusted 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,
|
|
2016
|
2015
|
2016
|
2015
|
Weighted average
common shares outstanding
|
|
|
|
|
Class A common
shares
|
14,373,699
|
10,953,138
|
14,687,700
|
10,432,882
|
Class B common
shares
|
6,703,212
|
9,812,956
|
6,292,694
|
10,294,067
|
Total Class A and B
common shares
|
21,076,911
|
20,766,094
|
20,980,394
|
20,726,949
|
|
|
|
|
|
Net income
attributable to Adeptus Health Inc.
|
$ 86,948
|
$ 10,634
|
$ 91,480
|
$ 11,228
|
Net income
attributable to non-controlling interest
|
61,248
|
17,040
|
64,579
|
18,048
|
Total net
income
|
148,196
|
27,674
|
156,059
|
29,276
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Gain on
contribution to joint venture
|
(185,336)
|
(24,250)
|
(185,336)
|
(24,250)
|
Preopening
expenses
|
3,294
|
1,991
|
5,234
|
4,089
|
Stock
compensation expense
|
1,221
|
608
|
2,309
|
1,157
|
Public
offering costs
|
530
|
993
|
530
|
993
|
Duplicative
billing effort
|
-
|
-
|
208
|
-
|
Other
|
292
|
769
|
1,179
|
1,275
|
Total
adjustments
|
(179,999)
|
(19,889)
|
(175,876)
|
(16,736)
|
Tax impact of
adjustments (1)
|
63,000
|
6,961
|
61,557
|
5,858
|
Tax adjustment
resulting from applying effective tax rate
(2)
|
(21,143)
|
(5,573)
|
(21,868)
|
(5,823)
|
Adjusted net
income
|
10,054
|
9,173
|
19,872
|
12,575
|
Adjusted net income
per share
|
$ 0.48
|
$ 0.44
|
$ 0.95
|
$ 0.61
|
|
|
|
|
|
|
|
(1)
Reflects the removal of the tax benefit associated with the
adjustments
|
|
(2)
Represents adjusting to a normalized effective tax rate of
35%
|
|
Adeptus Health
Inc.
|
Systemwide Net
Patient Services Revenue
|
(unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Patient Services
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
facilities
|
|
$
|
84,922
|
|
$
|
86,849
|
|
$
|
191,157
|
|
$
|
167,806
|
Unconsolidated joint
ventures
|
|
|
57,455
|
|
|
17,659
|
|
|
91,580
|
|
|
20,662
|
Systemwide net patient
services revenue
|
|
$
|
142,377
|
|
$
|
104,508
|
|
$
|
282,737
|
|
$
|
188,468
|
Adeptus Health
Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2016
|
|
2015
|
ASSETS
|
(unaudited)
|
|
(audited)
|
Current
assets
|
|
|
|
Cash
|
$ 3,718
|
|
$ 16,037
|
Accounts receivable,
less allowance for doubtful accounts of $28,901 and $28,818,
respectively
|
74,327
|
|
65,954
|
Other receivables and
current assets
|
57,352
|
|
31,532
|
Medical supplies
inventory
|
2,900
|
|
5,167
|
Total current
assets
|
138,297
|
|
118,690
|
Property and
equipment, net
|
34,486
|
|
70,187
|
Investment in
unconsolidated joint ventures
|
272,967
|
|
43,104
|
Deposits
|
939
|
|
1,163
|
Deferred tax
asset
|
255,886
|
|
206,265
|
Intangibles,
net
|
17,345
|
|
18,235
|
Goodwill
|
51,390
|
|
61,009
|
Other long term
assets
|
2,046
|
|
2,950
|
Total assets
|
$ 773,356
|
|
$ 521,603
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$ 24,608
|
|
$ 27,521
|
Accrued
compensation
|
17,043
|
|
23,197
|
Current maturities of
long-term debt
|
7,278
|
|
7,585
|
Current maturities of
capital lease obligations
|
40
|
|
102
|
Deferred
rent
|
691
|
|
858
|
Total current
liabilities
|
49,660
|
|
59,263
|
Long-term debt, less
current maturities
|
126,772
|
|
113,563
|
Payable to related
parties pursuant to tax receivable agreement
|
237,914
|
|
191,302
|
Capital lease
obligation, less current maturities
|
177
|
|
3,954
|
Deferred
rent
|
2,453
|
|
3,837
|
Total
liabilities
|
416,976
|
|
371,919
|
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, 2016
|
-
|
|
-
|
Class A common stock,
par value $0.01 per share; 50,000,000 shares authorized, 16,350,866
and 14,257,187 shares issued and outstanding at June 30, 2016 and
December 31, 2015, respectively
|
164
|
|
143
|
Class B common stock,
par value $0.01 per share; 20,000,000 shares authorized, 4,724,430
and 6,510,738 shares issued and outstanding at June 30, 2016 and
December 31, 2015, respectively
|
47
|
|
65
|
Additional paid in
capital
|
172,370
|
|
85,457
|
Retained
earnings
|
95,084
|
|
6,323
|
Non-controlling
interest
|
88,715
|
|
57,696
|
Total equity
|
356,380
|
|
149,684
|
Total liabilities and
shareholders' equity
|
$ 773,356
|
|
$ 521,603
|
Adeptus Health
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$ 148,196
|
$ 27,674
|
|
$ 156,059
|
$ 29,276
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
Loss from the disposal or
impairment of assets
|
|
-
|
68
|
|
2
|
68
|
Depreciation and
amortization
|
|
3,412
|
4,523
|
|
7,783
|
9,279
|
Deferred tax
expense
|
|
46,589
|
4,122
|
|
48,363
|
4,377
|
Amortization of deferred
loan costs
|
|
194
|
249
|
|
387
|
468
|
Provision for bad
debts
|
|
16,673
|
17,514
|
|
43,726
|
32,459
|
Gain on contribution to
unconsolidated joint ventures
|
|
(185,336)
|
(24,250)
|
|
(185,336)
|
(24,250)
|
Equity in earnings of
unconsolidated joint ventures
|
|
(2,435)
|
(3,621)
|
|
(4,936)
|
(2,927)
|
Stock-based
compensation
|
|
1,221
|
608
|
|
2,309
|
1,157
|
Changes in operating assets
and liabilities:
|
|
|
|
|
|
|
Restricted
cash
|
|
-
|
64
|
|
-
|
(3,009)
|
Accounts
receivable
|
|
(13,603)
|
(14,475)
|
|
(52,099)
|
(41,375)
|
Other
receivables and current assets
|
|
(18,888)
|
(2,060)
|
|
(25,996)
|
(951)
|
Medical
supplies inventory
|
|
(20)
|
(34)
|
|
(526)
|
(160)
|
Other
long-term assets
|
|
78
|
(127)
|
|
261
|
(110)
|
Accounts
payable and accrued expenses
|
|
(3,105)
|
2,864
|
|
(1,834)
|
(4,140)
|
Accrued
compensation
|
|
(2,025)
|
(1,007)
|
|
(5,085)
|
(464)
|
Deferred
rent
|
|
473
|
924
|
|
929
|
1,377
|
Net
cash (used in) provided by operating activities
|
|
(8,576)
|
13,036
|
|
(15,993)
|
1,075
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Deposits
|
|
71
|
310
|
|
224
|
985
|
Investments in
unconsolidated joint ventures
|
|
(927)
|
-
|
|
(927)
|
-
|
Proceeds from the sale
of property and equipment
|
|
-
|
10
|
|
-
|
1,527
|
Capital
expenditures
|
|
(1,674)
|
(1,650)
|
|
(3,718)
|
(3,270)
|
Net cash used in investing activities
|
|
(2,530)
|
(1,330)
|
|
(4,421)
|
(758)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from public
offerings, net of underwriters fees and expenses
|
|
107,389
|
94,470
|
|
107,389
|
94,470
|
Purchase of limited
liability units from LLC Unit holders
|
|
(107,389)
|
(94,470)
|
|
(107,389)
|
(94,470)
|
Proceeds from long-term
borrowings
|
|
21,000
|
30,000
|
|
35,000
|
54,000
|
Payment of deferred
loan costs
|
|
-
|
(415)
|
|
-
|
(495)
|
Payments on
borrowings
|
|
(7,013)
|
(6,049)
|
|
(23,303)
|
(6,691)
|
Payments of capital
lease obligations
|
|
(11)
|
(20)
|
|
(35)
|
(39)
|
Restricted stock
forfeited on vesting to satisfy withholding requirements
|
|
(260)
|
-
|
|
(847)
|
-
|
Tax distribution to
unit holders
|
|
(2,548)
|
(2,965)
|
|
(2,720)
|
(2,965)
|
Net cash provided by financing activities
|
|
11,168
|
20,551
|
|
8,095
|
43,810
|
Net increase
(decrease) in cash and cash equivalents
|
|
62
|
32,257
|
|
(12,319)
|
44,127
|
Cash, beginning of
period
|
|
3,656
|
13,872
|
|
16,037
|
2,002
|
Cash, end of
period
|
|
$ 3,718
|
$ 46,129
|
|
$ 3,718
|
$ 46,129
|
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SOURCE Adeptus Health Inc.