| Nevada |
75-2822620 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
| 5080 Spectrum Drive, Suite 400W Addison, Texas |
75001 | |
| (address of principal executive offices) |
(Zip Code) |
| Page | ||
| PART I. FINANCIAL INFORMATION |
||
| Item 1. Financial Statements |
||
| 3 | ||
| 4 | ||
| 5 | ||
| 6 | ||
| 13 | ||
| 21 | ||
| 21 | ||
| PART II. OTHER INFORMATION |
||
| 22 | ||
| 22 | ||
| 23 | ||
| 24 | ||
| 26 |
| September 30, 2002 |
December 31, 2001 |
|||||||
| (Unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
10,587 |
|
$ |
7,308 |
| ||
| Accounts receivable, net |
|
175,569 |
|
|
181,023 |
| ||
| Prepaid expenses and other current assets |
|
43,790 |
|
|
38,760 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
229,946 |
|
|
227,091 |
| ||
| Property and equipment, net |
|
129,111 |
|
|
132,302 |
| ||
| Goodwill and other intangible assets, net |
|
476,401 |
|
|
475,500 |
| ||
| Other assets |
|
54,454 |
|
|
32,072 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
889,912 |
|
$ |
866,965 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Revolving credit facility |
$ |
6,000 |
|
$ |
6,000 |
| ||
| Current portion of long-term debt |
|
4,114 |
|
|
4,211 |
| ||
| Accounts payable and accrued expenses |
|
114,245 |
|
|
133,908 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
124,359 |
|
|
144,119 |
| ||
| Long-term portion of debt |
|
501,678 |
|
|
552,270 |
| ||
| Deferred income taxes and other liabilities |
|
83,745 |
|
|
67,094 |
| ||
| Fair value of hedging arrangements |
|
34,779 |
|
|
25,883 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
744,561 |
|
|
789,366 |
| ||
| Stockholders equity: |
||||||||
| Common stock |
|
|
|
|
|
| ||
| Paid-in capital |
|
233,858 |
|
|
168,159 |
| ||
| Retained deficit |
|
(88,507 |
) |
|
(90,560 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
145,351 |
|
|
77,599 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
889,912 |
|
$ |
866,965 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
||||||||||||
| Revenue: |
|||||||||||||||
| Health Services |
$ |
125,001 |
|
$ |
114,708 |
|
$ |
347,545 |
$ |
336,336 |
| ||||
| Network Services |
|
55,164 |
|
|
45,169 |
|
|
168,653 |
|
132,845 |
| ||||
| Care Management Services |
|
71,632 |
|
|
52,473 |
|
|
225,577 |
|
158,808 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
251,797 |
|
|
212,350 |
|
|
741,775 |
|
627,989 |
| ||||
| Cost of Services: |
|||||||||||||||
| Health Services |
|
98,861 |
|
|
91,284 |
|
|
287,307 |
|
269,026 |
| ||||
| Network Services |
|
34,762 |
|
|
25,735 |
|
|
103,750 |
|
79,283 |
| ||||
| Care Management Services |
|
67,494 |
|
|
46,751 |
|
|
201,525 |
|
139,310 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of services |
|
201,117 |
|
|
163,770 |
|
|
592,582 |
|
487,619 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total gross profit |
|
50,680 |
|
|
48,580 |
|
|
149,193 |
|
140,370 |
| ||||
| General and administrative expenses |
|
27,795 |
|
|
18,557 |
|
|
77,103 |
|
57,152 |
| ||||
| Amortization of intangibles |
|
851 |
|
|
3,825 |
|
|
2,709 |
|
11,315 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Operating income |
|
22,034 |
|
|
26,198 |
|
|
69,381 |
|
71,903 |
| ||||
| Interest expense, net |
|
15,394 |
|
|
16,564 |
|
|
48,335 |
|
50,227 |
| ||||
| Loss on change in fair value of hedging arrangements |
|
7,712 |
|
|
13,473 |
|
|
8,896 |
|
16,553 |
| ||||
| Loss on early retirement of debt |
|
7,381 |
|
|
|
|
|
7,381 |
|
|
| ||||
| Loss of acquired affiliate, net of tax |
|
|
|
|
1,065 |
|
|
|
|
2,607 |
| ||||
| Other, net |
|
677 |
|
|
307 |
|
|
1,301 |
|
612 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before income taxes |
|
(9,130 |
) |
|
(5,211 |
) |
|
3,468 |
|
1,904 |
| ||||
| Provision (benefit) for income taxes |
|
(3,544 |
) |
|
(309 |
) |
|
1,443 |
|
4,939 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
(5,586 |
) |
$ |
(4,902 |
) |
$ |
2,025 |
$ |
(3,035 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Nine Months Ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Operating Activities: |
||||||||
| Net income (loss) |
$ |
2,025 |
|
$ |
(3,035 |
) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
| Depreciation of property and equipment |
|
28,643 |
|
|
20,593 |
| ||
| Amortization of intangibles |
|
2,709 |
|
|
11,315 |
| ||
| Write-off of fixed assets |
|
246 |
|
|
13 |
| ||
| Loss on change in fair value of hedging arrangements |
|
8,896 |
|
|
16,553 |
| ||
| Changes in assets and liabilities, net of acquired assets and liabilities: |
||||||||
| Accounts receivable, net |
|
4,376 |
|
|
(6,920 |
) | ||
| Prepaid expenses and other assets |
|
(25,768 |
) |
|
(1,005 |
) | ||
| Accounts payable and accrued expenses |
|
8,616 |
|
|
11,192 |
| ||
| |
|
|
|
|
| |||
| Net cash provided by operating activities |
|
29,743 |
|
|
48,706 |
| ||
| |
|
|
|
|
| |||
| Investing Activities: |
||||||||
| Acquisitions, net of cash acquired |
|
(1,829 |
) |
|
(18,206 |
) | ||
| Proceeds from the licensing of internally-developed software |
|
515 |
|
|
590 |
| ||
| Purchases of property and equipment |
|
(26,626 |
) |
|
(20,095 |
) | ||
| |
|
|
|
|
| |||
| Net cash used in investing activities |
|
(27,940 |
) |
|
(37,711 |
) | ||
| |
|
|
|
|
| |||
| Financing Activities: |
||||||||
| Payment of deferred financing costs |
|
(1,135 |
) |
|
|
| ||
| Issuance of common stock to parent |
|
52,970 |
|
|
|
| ||
| Contribution from issuance of common stock by parent |
|
355 |
|
|
276 |
| ||
| Repurchase of common stock by parent |
|
(25 |
) |
|
|
| ||
| Repayments of long-term debt |
|
(50,689 |
) |
|
(3,111 |
) | ||
| |
|
|
|
|
| |||
| Net cash provided by (used in) financing activities |
|
1,476 |
|
|
(2,835 |
) | ||
| |
|
|
|
|
| |||
| Net Increase in Cash and Cash Equivalents |
|
3,279 |
|
|
8,160 |
| ||
| Cash and Cash Equivalents, beginning of period |
|
7,308 |
|
|
6,549 |
| ||
| |
|
|
|
|
| |||