[November 21, 2014] |
|
IASIS Healthcare Announces Fourth Quarter and Year-End 2014 Results
FRANKLIN, Tenn. --(Business Wire)--
IASIS Healthcare® LLC ("IASIS" or the "Company") today announced
financial and operating results for the fiscal fourth quarter and year
ended September 30, 2014. The Company's discontinued operations in the
accompanying consolidated financial statements have been excluded from
segment information, consolidated financial and operating data and
supplemental consolidated statements of operations information for the
fiscal fourth quarters and years ended September 30, 2014 and 2013.
Key Financial & Operating Results
Fourth Quarter Fiscal 2014
Total revenue for the fourth quarter totaled $655.4 million, an increase
of 16.4% compared to $563.0 million in the prior year quarter. Adjusted
EBITDAR, which excludes rent expense associated with the sale-leaseback
of certain hospital real estate, for the fourth quarter totaled $73.9
million, an increase of 16.5% compared to $63.5 million in the prior
year quarter.
In the fourth quarter, admissions increased 0.8% and adjusted admissions
increased 2.6%, each compared to the prior year quarter. Net patient
revenue per adjusted admission in the fourth quarter increased 5.2%
compared to the prior year quarter.
Acute care revenue for the fourth quarter increased 7.6% compared to the
prior year quarter. Premium and service revenues at Health Choice for
the fourth quarter, excluding the effect of $4.7 million of revenue
associated with the new health insurer fee ("HIF"), increased 41.0%
compared to the prior year quarter. Total lives served across all
product lines increased 81.3% to 340,900, compared to 188,000 in the
prior year quarter, while health plan lives increased 18.8% compared to
the same prior year period.
"We are very pleased with the strong results in both our acute care and
managed care operations. We are seeing continued improvements in
employment and other economic factors in our local markets, solid
fundamental operating performance, as well as continued improvements in
our payor and service line mix," said IASIS Healthcare President and
Chief Executive Officer Carl Whitmer. "We are excited about our plans
for the upcoming 2015 fiscal year, which include growing our core
provider business, expanding our managed care operations and continuing
integration of our business lines in a manner that improves population
health, results in more cost efficient care and drives value."
Fiscal Year 2014
Total revenue for the year ended September 30, 2014, totaled $2.5
billion, an increase of 10.9% compared to $2.3 billion in the prior
year. Adjusted EBITDAR for the year ended September 30, 2014, totaled
$287.7 million, an increase of 13.4% compared to $253.8 million in the
prior year. Adjusted EBITDAR for fiscal 2014 includes $4.8 million in
start-up related costs at Health Choice and $3.5 million of compensation
expense associated with a special bonus paid to certain members of the
Company's leadership team in recognition of the completion of certain
strategic initiatives. Additionally, the prior year was negatively
affected by $6.1 million of changes in reimbursement estimates
associated with the Company's Houston market.
For the year ended September 30, 2014, admissions decreased 2.5% and
adjusted admissions increased 0.8%, each compared to the prior year. Net
patient revenue per adjusted admission for the year ended September 30,
2014, increased 4.4% compared to the prior year.
Acute care revenue for the year ended September 30, 2014, increased 4.8%
compared to the prior year. Premium and service revenues at Health
Choice for the year ended September 30, 2014, excluding the effect of
$8.2 million of revenue associated with the new HIF, increased 28.0%
compared to the prior year.
Cash flows provided by continuing operations for the year ended
September 30, 2014, totaled $77.2 million, compared to cash flows
provided by continuing operations of $101.2 million in the prior year.
Cash flows provided by operations for the year ended September 30, 2014,
were affected by the payment of $22.3 million in income taxes and other
transaction costs, as well as additional rent payments of $22.2 million,
both associated with the Company's sale-leaseback of certain hospital
real estate that occurred at the end of fiscal 2013, and the continued
delay of certain supplemental and other program reimbursement in Texas
and Arizona.
On November 11, 2014, in connection with the Company's efforts to
execute on both short- and long-term growth initiatives in its core
markets and at Health Choice, the Company's managed care solutions
business, IASIS signed a definitive agreement to sell its Nevada
operations.
Conference Call
A listen-only simulcast and 30-day replay of IASIS' fourth quarter and
year-end 2014 conference call will be available by clicking the "For
Investors" link on the Company's Web site at www.iasishealthcare.com
beginning at 11:00 a.m. Eastern Time on November 21, 2014. A copy of
this press release will also be available on the Company's Web site.
IASIS Healthcare, located in Franklin, Tennessee, is a leading provider
and manager of high-quality, affordable healthcare services in urban and
suburban markets. With total annual total revenue of approximately $2.5
billion, IASIS owns and operates 16 acute care hospitals, one behavioral
health hospital, several outpatient service facilities, 134 physician
clinics, and Health Choice, a provider-owned, managed care organization
and insurer delivering healthcare services to over 340,000 members
through multiple health plans, accountable care networks and managed
care solutions. IASIS offers a variety of access points for convenient
patient care in numerous regions across the U.S., including: Salt Lake
City, Utah; Phoenix, Arizona; five cities in Texas, including Houston
and San Antonio; and West Monroe, Louisiana. For more information on
IASIS, please visit the Company's Web site at www.iasishealthcare.com.
Some of the statements we make in this press release are
forward-looking within the meaning of the federal securities laws, which
are intended to be covered by the safe harbors created thereby. Those
forward-looking statements include all statements that are not
historical statements of fact and those regarding our intent, belief or
expectations including, but not limited to, future financial and
operating results, the Company's plans, objectives, expectations and
other statements that are not historical facts. Forward-looking
statements involve known and unknown risks and uncertainties that may
cause actual results in future periods to differ materially from those
anticipated in the forward-looking statements. These risk factors and
uncertainties are more fully described in the Company's Annual Report on
Form 10-K for the fiscal year ended September 30, 2013, and other
filings with the Securities and Exchange Commission.
Although we believe that the assumptions underlying the
forward-looking statements contained in this press release are
reasonable, any of these assumptions could prove to be inaccurate, and,
therefore, there can be no assurance that the forward-looking statements
included in this press release will prove to be accurate. In light of
the significant uncertainties inherent in the forward-looking statements
included herein, you should not regard the inclusion of such information
as a representation by the Company or any other person that our
objectives and plans will be achieved. We undertake no obligation to
publicly release any revisions to any forward-looking statements
contained herein to reflect events and circumstances occurring after the
date hereof or to reflect the occurrence of unanticipated events.
Adjusted EBITDAR represents adjusted EBITDA before rent expense
associated with the sale-leaseback of certain hospital real estate.
Adjusted EBITDA represents net earnings (loss) from continuing
operations before interest expense, income tax expense (benefit),
depreciation and amortization, stock-based compensation and related
expenses, gain (loss) on disposal of assets and management fees.
Management fees represent monitoring and advisory fees paid to TPG, the
Company's majority financial sponsor, and certain other members of IASIS
Investment LLC. Management routinely calculates and communicates
adjusted EBITDA and believes that it is useful to investors because it
is commonly used as an analytical indicator within the healthcare
industry to evaluate hospital performance, allocate resources and
measure leverage capacity and debt service ability. In addition, the
Company uses adjusted EBITDA as a measure of performance for its
business segments and for incentive compensation purposes. Neither
adjusted EBITDAR nor adjusted EBITDA should be considered as a measure
of financial performance under generally accepted accounting principles,
and the items excluded from such EBITDAR and EBITDA measures are
significant components in understanding and assessing financial
performance. Neither EBITDAR nor EBITDA measures should be considered in
isolation or as an alternative to net earnings, cash flows generated by
operating, investing, or financing activities or other financial
statement data presented in the consolidated financial statements as an
indicator of financial performance or liquidity. Such EBITDAR and EBITDA
measures may not be comparable to similarly titled measures of other
companies. A table describing adjusted EBITDAR and adjusted EBITDA and
reconciling net earnings (loss) from continuing operations to such
EBITDAR and EBITDA measures is included in this press release in the
attached Supplemental Consolidated Statements of Operations Information.
|
|
|
|
|
IASIS HEALTHCARE LLC
Consolidated Statements of Operations (Unaudited)
(in thousands)
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Year Ended
September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
Revenues
|
|
|
|
|
|
|
|
|
Acute care revenue before provision for bad debts
|
|
$
|
527,217
|
|
|
$
|
514,390
|
|
|
$
|
2,140,675
|
|
|
$
|
2,047,880
|
|
Less: Provision for bad debts
|
|
|
(76,869
|
)
|
|
|
(93,522
|
)
|
|
|
(337,118
|
)
|
|
|
(326,978
|
)
|
Acute care revenue
|
|
|
450,348
|
|
|
|
420,868
|
|
|
|
1,803,557
|
|
|
|
1,720,902
|
|
Premium and service revenues
|
|
|
205,035
|
|
|
|
142,093
|
|
|
|
730,030
|
|
|
|
564,152
|
|
Total revenue
|
|
|
655,383
|
|
|
|
562,961
|
|
|
|
2,533,587
|
|
|
|
2,285,054
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
Salaries and benefits (includes stock-based compensation of $1,533,
$909, $10,329 and $3,855, respectively)
|
|
|
227,164
|
|
|
|
213,781
|
|
|
|
892,714
|
|
|
|
848,010
|
|
Supplies
|
|
|
72,344
|
|
|
|
70,030
|
|
|
|
299,760
|
|
|
|
294,409
|
|
Medical claims
|
|
|
160,024
|
|
|
|
118,738
|
|
|
|
596,778
|
|
|
|
467,294
|
|
Rentals and leases
|
|
|
18,270
|
|
|
|
13,929
|
|
|
|
72,714
|
|
|
|
52,896
|
|
Other operating expenses
|
|
|
115,347
|
|
|
|
95,090
|
|
|
|
426,933
|
|
|
|
393,516
|
|
Medicare and Medicaid EHR incentives
|
|
|
(5,460
|
)
|
|
|
(10,839
|
)
|
|
|
(14,753
|
)
|
|
|
(20,723
|
)
|
Interest expense, net
|
|
|
32,520
|
|
|
|
33,220
|
|
|
|
130,818
|
|
|
|
133,206
|
|
Depreciation and amortization
|
|
|
25,540
|
|
|
|
23,381
|
|
|
|
95,312
|
|
|
|
94,026
|
|
Management fees
|
|
|
1,250
|
|
|
|
1,250
|
|
|
|
5,000
|
|
|
|
5,000
|
|
Total costs and expenses
|
|
|
646,999
|
|
|
|
558,580
|
|
|
|
2,505,276
|
|
|
|
2,267,634
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before gain (loss) on disposal
of assets and income taxes
|
|
|
8,384
|
|
|
|
4,381
|
|
|
|
28,311
|
|
|
|
17,420
|
|
Gain (loss) on disposal of assets, net
|
|
|
2,304
|
|
|
|
(9,626
|
)
|
|
|
3,402
|
|
|
|
(8,982
|
)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations before income taxes
|
|
|
10,688
|
|
|
|
(5,245
|
)
|
|
|
31,713
|
|
|
|
8,438
|
|
Income tax expense (benefit)
|
|
|
(5,609
|
)
|
|
|
(2,756
|
)
|
|
|
8,424
|
|
|
|
3,647
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
|
|
|
16,297
|
|
|
|
(2,489
|
)
|
|
|
23,289
|
|
|
|
4,791
|
|
Earnings (loss) from discontinued operations, net of income taxes
|
|
|
(8,262
|
)
|
|
|
2,947
|
|
|
|
(14,005
|
)
|
|
|
5,708
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
8,035
|
|
|
|
458
|
|
|
|
9,284
|
|
|
|
10,499
|
|
Net earnings attributable to non-controlling interests
|
|
|
(2,811
|
)
|
|
|
(4,026
|
)
|
|
|
(11,668
|
)
|
|
|
(7,215
|
)
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to IASIS Healthcare LLC
|
|
$
|
5,224
|
|
|
$
|
(3,568
|
)
|
|
$
|
(2,384
|
)
|
|
$
|
3,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IASIS HEALTHCARE LLC
Consolidated Balance Sheets (Unaudited)
(in thousands)
|
|
|
|
|
|
|
|
|
Sept. 30, 2014
|
|
|
Sept. 30, 2013
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
341,180
|
|
|
$
|
438,131
|
Accounts receivable, net
|
|
|
305,654
|
|
|
|
371,006
|
Inventories
|
|
|
57,632
|
|
|
|
57,781
|
Deferred income taxes
|
|
|
2,523
|
|
|
|
26,096
|
Prepaid expenses and other current assets
|
|
|
235,155
|
|
|
|
126,412
|
Assets held for sale
|
|
|
50,151
|
|
|
|
119,141
|
Total current assets
|
|
|
992,295
|
|
|
|
1,138,567
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
826,478
|
|
|
|
833,169
|
Goodwill
|
|
|
814,498
|
|
|
|
816,410
|
Other intangible assets, net
|
|
|
23,331
|
|
|
|
25,957
|
Other assets, net
|
|
|
62,362
|
|
|
|
66,162
|
Total assets
|
|
$
|
2,718,964
|
|
|
$
|
2,880,265
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
127,953
|
|
|
$
|
129,542
|
Salaries and benefits payable
|
|
|
71,121
|
|
|
|
62,884
|
Accrued interest payable
|
|
|
28,820
|
|
|
|
27,519
|
Medical claims payable
|
|
|
79,449
|
|
|
|
57,514
|
Other accrued expenses and current liabilities
|
|
|
73,497
|
|
|
|
92,553
|
Current portion of long-term debt, capital leases and other
obligations
|
|
|
12,690
|
|
|
|
13,221
|
Advance from divestiture
|
|
|
-
|
|
|
|
144,803
|
Liabilities held for sale
|
|
|
9,171
|
|
|
|
3,208
|
Total current liabilities
|
|
|
402,701
|
|
|
|
531,244
|
|
|
|
|
|
|
Long-term debt, capital leases and other obligations
|
|
|
1,841,110
|
|
|
|
1,852,822
|
Deferred income taxes
|
|
|
100,868
|
|
|
|
115,592
|
Other long-term liabilities
|
|
|
117,289
|
|
|
|
123,120
|
|
|
|
|
|
|
Non-controlling interests with redemption rights
|
|
|
108,156
|
|
|
|
105,464
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Member's equity
|
|
|
139,164
|
|
|
|
142,262
|
Non-controlling interests
|
|
|
9,676
|
|
|
|
9,761
|
Total equity
|
|
|
148,840
|
|
|
|
152,023
|
Total liabilities and equity
|
|
$
|
2,718,964
|
|
|
$
|
2,880,265
|
|
|
|
|
|
|
|
|
|
|
|
IASIS HEALTHCARE LLC
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
|
|
|
|
|
|
Year Ended September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
Cash flows from operating activities
|
|
|
|
|
Net earnings
|
|
$
|
9,284
|
|
|
$
|
10,499
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
95,312
|
|
|
|
94,026
|
|
Amortization of loan costs
|
|
|
7,412
|
|
|
|
7,612
|
|
Amortization of deferred gain from sale-leaseback
|
|
|
(2,496
|
)
|
|
|
-
|
|
Change in physician minimum revenue guarantees
|
|
|
2,709
|
|
|
|
2,807
|
|
Stock-based compensation
|
|
|
10,329
|
|
|
|
3,855
|
|
Deferred income taxes
|
|
|
3,491
|
|
|
|
(6,220
|
)
|
Income tax benefit from exercise of employee stock options
|
|
|
-
|
|
|
|
16
|
|
Income tax benefit from parent company
|
|
|
3
|
|
|
|
489
|
|
Loss (gain) on disposal of assets, net
|
|
|
(3,402
|
)
|
|
|
8,982
|
|
Loss (earnings) from discontinued operations, net
|
|
|
14,005
|
|
|
|
(5,708
|
)
|
Changes in operating assets and liabilities, net of the effect of
acquisitions and dispositions:
|
|
|
|
|
Accounts receivable, net
|
|
|
(1,551
|
)
|
|
|
(1,724
|
)
|
Inventories, prepaid expenses and other current assets
|
|
|
(107,413
|
)
|
|
|
(14,277
|
)
|
Accounts payable, other accrued expenses and other accrued
liabilities
|
|
|
71,808
|
|
|
|
822
|
|
Income taxes and other transaction costs payable related to
sale-leaseback of real estate
|
|
|
(22,270
|
)
|
|
|
-
|
|
Net cash provided by operating activities - continuing operations
|
|
|
77,221
|
|
|
|
101,179
|
|
Net cash used in operating activities - discontinued operations
|
|
|
(18,350
|
)
|
|
|
(3,027
|
)
|
Net cash provided by operating activities
|
|
|
58,871
|
|
|
|
98,152
|
|
Cash flows from investing activities
|
|
|
|
|
Purchases of property and equipment
|
|
|
(114,586
|
)
|
|
|
(106,555
|
)
|
Cash received (paid) for acquisitions, net
|
|
|
(1,038
|
)
|
|
|
2,996
|
|
Cash advance on divestiture
|
|
|
-
|
|
|
|
144,803
|
|
Cash received (paid) for sale-leaseback of real estate
|
|
|
(3,025
|
)
|
|
|
277,983
|
|
Proceeds from sale of assets
|
|
|
1,903
|
|
|
|
83
|
|
Change in other assets, net
|
|
|
(631
|
)
|
|
|
(2,210
|
)
|
Net cash provided by (used in) investing activities - continuing
operations
|
|
|
(117,377
|
)
|
|
|
317,100
|
|
Net cash used in investing activities - discontinued operations
|
|
|
(5,038
|
)
|
|
|
(5,128
|
)
|
Net cash provided by (used in) investing activities
|
|
|
(122,415
|
)
|
|
|
311,972
|
|
Cash flows from financing activities
|
|
|
|
|
Payment of long-term debt, capital leases and other obligations
|
|
|
(13,365
|
)
|
|
|
(178,459
|
)
|
Proceeds from revolving credit facilities
|
|
|
-
|
|
|
|
165,000
|
|
Payment of debt financing costs
|
|
|
(1,691
|
)
|
|
|
(1,024
|
)
|
Distributions to non-controlling interests
|
|
|
(15,618
|
)
|
|
|
(6,012
|
)
|
Cash received for the sale of non-controlling interests
|
|
|
-
|
|
|
|
849
|
|
Cash paid for the repurchase of non-controlling interests
|
|
|
(770
|
)
|
|
|
(1,211
|
)
|
Other
|
|
|
(1,838
|
)
|
|
|
22
|
|
Net cash used in financing activities - continuing operations
|
|
|
(33,282
|
)
|
|
|
(20,835
|
)
|
Net cash used in financing activities - discontinued operations
|
|
|
(125
|
)
|
|
|
(40
|
)
|
Net cash used in financing activities
|
|
|
(33,407
|
)
|
|
|
(20,875
|
)
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
(96,951
|
)
|
|
|
389,249
|
|
Cash and cash equivalents at beginning of period
|
|
|
438,131
|
|
|
|
48,882
|
|
Cash and cash equivalents at end of period
|
|
$
|
341,180
|
|
|
$
|
438,131
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
Cash paid for interest
|
|
$
|
123,253
|
|
|
$
|
126,693
|
|
Cash paid (received) for income taxes, net
|
|
$
|
33,086
|
|
|
$
|
(16,181
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
IASIS HEALTHCARE LLC
Segment Information (Unaudited)
(in thousands)
|
|
|
|
|
|
For the Quarter Ended September 30, 2014
|
|
|
Acute Care
|
|
Health Choice
|
|
Eliminations
|
|
Consolidated
|
Acute care revenue before provision for bad debts
|
|
$
|
527,217
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
527,217
|
|
Less: Provision for bad debts
|
|
|
(76,869
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(76,869
|
)
|
Acute care revenue
|
|
|
450,348
|
|
|
|
-
|
|
|
-
|
|
|
|
450,348
|
|
Premium and service revenues
|
|
|
-
|
|
|
|
205,035
|
|
|
-
|
|
|
|
205,035
|
|
Revenue between segments
|
|
|
4,540
|
|
|
|
-
|
|
|
(4,540
|
)
|
|
|
-
|
|
Total revenue
|
|
|
454,888
|
|
|
|
205,035
|
|
|
(4,540
|
)
|
|
|
655,383
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits (excludes stock-based compensation)
|
|
|
214,366
|
|
|
|
11,265
|
|
|
-
|
|
|
|
225,631
|
|
Supplies
|
|
|
72,284
|
|
|
|
60
|
|
|
-
|
|
|
|
72,344
|
|
Medical claims
|
|
|
-
|
|
|
|
164,564
|
|
|
(4,540
|
)
|
|
|
160,024
|
|
Rentals and leases (excludes sale-leaseback rent expense)
|
|
|
13,028
|
|
|
|
533
|
|
|
-
|
|
|
|
13,561
|
|
Other operating expenses
|
|
|
102,814
|
|
|
|
12,533
|
|
|
-
|
|
|
|
115,347
|
|
Medicare and Medicaid EHR incentives
|
|
|
(5,460
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(5,460
|
)
|
Adjusted EBITDAR
|
|
|
57,856
|
|
|
|
16,080
|
|
|
-
|
|
|
|
73,936
|
|
Sale-leaseback rent expense
|
|
|
4,709
|
|
|
|
-
|
|
|
-
|
|
|
|
4,709
|
|
Adjusted EBITDA
|
|
|
53,147
|
|
|
|
16,080
|
|
|
-
|
|
|
|
69,227
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
32,520
|
|
|
|
-
|
|
|
-
|
|
|
|
32,520
|
|
Depreciation and amortization
|
|
|
24,515
|
|
|
|
1,025
|
|
|
-
|
|
|
|
25,540
|
|
Stock-based compensation and related expenses
|
|
|
1,533
|
|
|
|
-
|
|
|
-
|
|
|
|
1,533
|
|
Management fees
|
|
|
1,250
|
|
|
|
-
|
|
|
-
|
|
|
|
1,250
|
|
Earnings (loss) from continuing operations before gain on disposal
of assets and income taxes
|
|
|
(6,671
|
)
|
|
|
15,055
|
|
|
-
|
|
|
|
8,384
|
|
Gain on disposal of assets, net
|
|
|
2,304
|
|
|
|
-
|
|
|
-
|
|
|
|
2,304
|
|
Earnings (loss) from continuing operations before income taxes
|
|
$
|
(4,367
|
)
|
|
$
|
15,055
|
|
$
|
-
|
|
|
$
|
10,688
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended September 30, 2013
|
|
|
Acute Care
|
|
Health Choice
|
|
Eliminations
|
|
Consolidated
|
Acute care revenue before provision for bad debts
|
|
$
|
514,390
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
514,390
|
|
Less: Provision for bad debts
|
|
|
(93,522
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(93,522
|
)
|
Acute care revenue
|
|
|
420,868
|
|
|
|
-
|
|
|
-
|
|
|
|
420,868
|
|
Premium and service revenues
|
|
|
-
|
|
|
|
142,093
|
|
|
-
|
|
|
|
142,093
|
|
Revenue between segments
|
|
|
1,758
|
|
|
|
-
|
|
|
(1,758
|
)
|
|
|
-
|
|
Total revenue
|
|
|
422,626
|
|
|
|
142,093
|
|
|
(1,758
|
)
|
|
|
562,961
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits (excludes stock-based compensation)
|
|
|
206,507
|
|
|
|
6,365
|
|
|
-
|
|
|
|
212,872
|
|
Supplies
|
|
|
69,989
|
|
|
|
41
|
|
|
-
|
|
|
|
70,030
|
|
Medical claims
|
|
|
-
|
|
|
|
120,496
|
|
|
(1,758
|
)
|
|
|
118,738
|
|
Rentals and leases (excludes sale-leaseback rent expense)
|
|
|
13,264
|
|
|
|
352
|
|
|
-
|
|
|
|
13,616
|
|
Other operating expenses
|
|
|
89,141
|
|
|
|
5,949
|
|
|
-
|
|
|
|
95,090
|
|
Medicare and Medicaid EHR incentives
|
|
|
(10,839
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(10,839
|
)
|
Adjusted EBITDAR
|
|
|
54,564
|
|
|
|
8,890
|
|
|
-
|
|
|
|
63,454
|
|
Sale-leaseback rent expense
|
|
|
313
|
|
|
|
-
|
|
|
-
|
|
|
|
313
|
|
Adjusted EBITDA
|
|
|
54,251
|
|
|
|
8,890
|
|
|
-
|
|
|
|
63,141
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
33,220
|
|
|
|
-
|
|
|
-
|
|
|
|
33,220
|
|
Depreciation and amortization
|
|
|
22,329
|
|
|
|
1,052
|
|
|
-
|
|
|
|
23,381
|
|
Stock-based compensation
|
|
|
909
|
|
|
|
-
|
|
|
-
|
|
|
|
909
|
|
Management fees
|
|
|
1,250
|
|
|
|
-
|
|
|
-
|
|
|
|
1,250
|
|
Earnings (loss) from continuing operations before loss on disposal
of assets and income taxes
|
|
|
(3,457
|
)
|
|
|
7,838
|
|
|
-
|
|
|
|
4,381
|
|
Loss on disposal of assets, net
|
|
|
(9,626
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(9,626
|
)
|
Earnings (loss) from continuing operations before income taxes
|
|
$
|
(13,083
|
)
|
|
$
|
7,838
|
|
$
|
-
|
|
|
$
|
(5,245
|
)
|
|
|
|
IASIS HEALTHCARE LLC
Segment Information (Unaudited)
(in thousands)
|
|
|
|
|
|
For the Year Ended September 30, 2014
|
|
|
Acute Care
|
|
Health Choice
|
|
Eliminations
|
|
Consolidated
|
Acute care revenue before provision for bad debts
|
|
$
|
2,140,675
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
2,140,675
|
|
Less: Provision for bad debts
|
|
|
(337,118
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(337,118
|
)
|
Acute care revenue
|
|
|
1,803,557
|
|
|
|
-
|
|
|
-
|
|
|
|
1,803,557
|
|
Premium and service revenues
|
|
|
-
|
|
|
|
730,030
|
|
|
-
|
|
|
|
730,030
|
|
Revenue between segments
|
|
|
13,079
|
|
|
|
-
|
|
|
(13,079
|
)
|
|
|
-
|
|
Total revenue
|
|
|
1,816,636
|
|
|
|
730,030
|
|
|
(13,079
|
)
|
|
|
2,533,587
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits (excludes stock-based compensation)
|
|
|
847,460
|
|
|
|
34,925
|
|
|
-
|
|
|
|
882,385
|
|
Supplies
|
|
|
299,527
|
|
|
|
233
|
|
|
-
|
|
|
|
299,760
|
|
Medical claims
|
|
|
-
|
|
|
|
609,857
|
|
|
(13,079
|
)
|
|
|
596,778
|
|
Rentals and leases (excludes sale-leaseback rent expense)
|
|
|
53,066
|
|
|
|
1,698
|
|
|
-
|
|
|
|
54,764
|
|
Other operating expenses
|
|
|
385,957
|
|
|
|
40,976
|
|
|
-
|
|
|
|
426,933
|
|
Medicare and Medicaid EHR incentives
|
|
|
(14,753
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(14,753
|
)
|
Adjusted EBITDAR
|
|
|
245,379
|
|
|
|
42,341
|
|
|
-
|
|
|
|
287,720
|
|
Sale-leaseback rent expense
|
|
|
17,950
|
|
|
|
-
|
|
|
-
|
|
|
|
17,950
|
|
Adjusted EBITDA
|
|
|
227,429
|
|
|
|
42,341
|
|
|
-
|
|
|
|
269,770
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
130,818
|
|
|
|
-
|
|
|
-
|
|
|
|
130,818
|
|
Depreciation and amortization
|
|
|
91,150
|
|
|
|
4,162
|
|
|
-
|
|
|
|
95,312
|
|
Stock-based compensation and related expenses
|
|
|
10,329
|
|
|
|
-
|
|
|
-
|
|
|
|
10,329
|
|
Management fees
|
|
|
5,000
|
|
|
|
-
|
|
|
-
|
|
|
|
5,000
|
|
Earnings (loss) from continuing operations before gain on disposal
of assets and income taxes
|
|
|
(9,868
|
)
|
|
|
38,179
|
|
|
-
|
|
|
|
28,311
|
|
Gain on disposal of assets, net
|
|
|
3,402
|
|
|
|
-
|
|
|
-
|
|
|
|
3,402
|
|
Earnings (loss) from continuing operations before income taxes
|
|
$
|
(6,466
|
)
|
|
$
|
38,179
|
|
$
|
-
|
|
|
$
|
31,713
|
|
|
|
|
|
|
For the Year Ended September 30, 2013
|
|
|
Acute Care
|
|
Health Choice
|
|
Eliminations
|
|
Consolidated
|
Acute care revenue before provision for bad debts
|
|
$
|
2,047,880
|
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
2,047,880
|
|
Less: Provision for bad debts
|
|
|
(326,978
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(326,978
|
)
|
Acute care revenue
|
|
|
1,720,902
|
|
|
|
-
|
|
|
-
|
|
|
|
1,720,902
|
|
Premium and service revenues
|
|
|
-
|
|
|
|
564,152
|
|
|
-
|
|
|
|
564,152
|
|
Revenue between segments
|
|
|
7,092
|
|
|
|
-
|
|
|
(7,092
|
)
|
|
|
-
|
|
Total revenue
|
|
|
1,727,994
|
|
|
|
564,152
|
|
|
(7,092
|
)
|
|
|
2,285,054
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits (excludes stock-based compensation)
|
|
|
820,170
|
|
|
|
23,985
|
|
|
-
|
|
|
|
844,155
|
|
Supplies
|
|
|
294,226
|
|
|
|
183
|
|
|
-
|
|
|
|
294,409
|
|
Medical claims
|
|
|
-
|
|
|
|
474,386
|
|
|
(7,092
|
)
|
|
|
467,294
|
|
Rentals and leases (excludes sale-leaseback rent expense)
|
|
|
51,039
|
|
|
|
1,544
|
|
|
-
|
|
|
|
52,583
|
|
Other operating expenses
|
|
|
370,068
|
|
|
|
23,448
|
|
|
-
|
|
|
|
393,516
|
|
Medicare and Medicaid EHR incentives
|
|
|
(20,723
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(20,723
|
)
|
Adjusted EBITDAR
|
|
|
213,214
|
|
|
|
40,606
|
|
|
-
|
|
|
|
253,820
|
|
Sale-leaseback rent expense
|
|
|
313
|
|
|
|
-
|
|
|
-
|
|
|
|
313
|
|
Adjusted EBITDA
|
|
|
212,901
|
|
|
|
40,606
|
|
|
-
|
|
|
|
253,507
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
133,206
|
|
|
|
-
|
|
|
-
|
|
|
|
133,206
|
|
Depreciation and amortization
|
|
|
89,878
|
|
|
|
4,148
|
|
|
-
|
|
|
|
94,026
|
|
Stock-based compensation
|
|
|
3,855
|
|
|
|
-
|
|
|
-
|
|
|
|
3,855
|
|
Management fees
|
|
|
5,000
|
|
|
|
-
|
|
|
-
|
|
|
|
5,000
|
|
Earnings (loss) from continuing operations before loss on disposal
of assets and income taxes
|
|
|
(19,038
|
)
|
|
|
36,458
|
|
|
-
|
|
|
|
17,420
|
|
Loss on disposal of assets, net
|
|
|
(8,982
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(8,982
|
)
|
Earnings (loss) from continuing operations before income taxes
|
|
$
|
(28,020
|
)
|
|
$
|
36,458
|
|
$
|
-
|
|
|
$
|
8,438
|
|
|
|
|
|
|
IASIS HEALTHCARE LLC
Consolidated Financial and Operating Data (Unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
September 30,
|
|
Year Ended September 30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Acute care operations (1)
|
|
|
|
|
|
|
|
|
Number of acute care hospital facilities at end of period
|
|
15
|
|
|
15
|
|
|
15
|
|
|
15
|
|
Licensed beds at end of period
|
|
3,601
|
|
|
3,626
|
|
|
3,601
|
|
|
3,626
|
|
Average length of stay (days)
|
|
5.0
|
|
|
4.9
|
|
|
5.0
|
|
|
4.9
|
|
Occupancy rates (average beds in service)
|
|
48.0
|
%
|
|
46.2
|
%
|
|
48.5
|
%
|
|
48.5
|
%
|
Admissions
|
|
25,333
|
|
|
25,129
|
|
|
100,909
|
|
|
103,509
|
|
Percentage change
|
|
0.8
|
%
|
|
|
|
(2.5
|
%)
|
|
|
Adjusted admissions
|
|
47,869
|
|
|
46,638
|
|
|
186,609
|
|
|
185,147
|
|
Percentage change
|
|
2.6
|
%
|
|
|
|
0.8
|
%
|
|
|
Patient days
|
|
125,553
|
|
|
122,140
|
|
|
503,648
|
|
|
508,157
|
|
Adjusted patient days
|
|
237,246
|
|
|
226,686
|
|
|
931,387
|
|
|
908,941
|
|
Surgeries
|
|
16,150
|
|
|
15,952
|
|
|
65,484
|
|
|
64,460
|
|
Emergency room visits
|
|
105,578
|
|
|
100,359
|
|
|
411,156
|
|
|
410,503
|
|
Outpatient revenue as a percentage of gross patient revenue
|
|
47.1
|
%
|
|
46.1
|
%
|
|
45.9
|
%
|
|
44.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed care operations
|
|
|
|
|
|
|
|
|
Health plan lives
|
|
223,400
|
|
|
188,000
|
|
|
223,400
|
|
|
188,000
|
|
Management service organization (MSO) lives
|
|
83,400
|
|
|
-
|
|
|
83,400
|
|
|
-
|
|
Accountable care network lives
|
|
34,100
|
|
|
-
|
|
|
34,100
|
|
|
-
|
|
Total lives
|
|
340,900
|
|
|
188,000
|
|
|
340,900
|
|
|
188,000
|
|
Medical loss ratio (2)
|
|
83.4
|
%
|
|
84.8
|
%
|
|
84.9
|
%
|
|
84.1
|
%
|
|
|
|
|
|
|
|
|
|
(1) Excludes the Company's Nevada and Florida operations, which
are now reflected in discontinued operations in both periods.
|
(2) Represents medical claims expense as a percentage of premium
revenue (excludes the effect of service-related revenue and HIF
revenue).
|
|
|
|
|
|
|
IASIS HEALTHCARE LLC
Supplemental Consolidated Statements of Operations Information
(Unaudited)
(in thousands)
|
|
|
|
|
|
|
|
Quarter Ended September 30,
|
|
Year Ended September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
Consolidated Results
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
|
|
$
|
16,297
|
|
|
$
|
(2,489
|
)
|
|
$
|
23,289
|
|
|
$
|
4,791
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
32,520
|
|
|
|
33,220
|
|
|
|
130,818
|
|
|
|
133,206
|
|
Income tax expense (benefit)
|
|
|
(5,609
|
)
|
|
|
(2,756
|
)
|
|
|
8,424
|
|
|
|
3,647
|
|
Depreciation and amortization
|
|
|
25,540
|
|
|
|
23,381
|
|
|
|
95,312
|
|
|
|
94,026
|
|
Sale-leaseback rent expense
|
|
|
4,709
|
|
|
|
313
|
|
|
|
17,950
|
|
|
|
313
|
|
Stock-based compensation and related expenses
|
|
|
1,533
|
|
|
|
909
|
|
|
|
10,329
|
|
|
|
3,855
|
|
Loss (gain) on disposal of assets, net
|
|
|
(2,304
|
)
|
|
|
9,626
|
|
|
|
(3,402
|
)
|
|
|
8,982
|
|
Management fees
|
|
|
1,250
|
|
|
|
1,250
|
|
|
|
5,000
|
|
|
|
5,000
|
|
Adjusted EBITDAR
|
|
|
73,936
|
|
|
|
63,454
|
|
|
|
287,720
|
|
|
|
253,820
|
|
Sale-leaseback rent expense
|
|
|
(4,709
|
)
|
|
|
(313
|
)
|
|
|
(17,950
|
)
|
|
|
(313
|
)
|
Adjusted EBITDA
|
|
$
|
69,227
|
|
|
$
|
63,141
|
|
|
$
|
269,770
|
|
|
$
|
253,507
|
|
[ Back To TMCnet.com's Homepage ]
|