RES CARE INC /KY/

CIK:0000776325|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Revenues	$ 437,807	$ 409,934	$ 1,290,724	$ 1,195,621
Cost of services	333,809	305,508	978,241	894,958
Gross profit	103,998	104,426	312,483	300,663
Operating expenses:
Operational general and administrative	60,498	55,222	175,704	167,601
Corporate general and administrative	23,898	24,280	81,135	63,168
Total operating expenses	84,396	79,502	256,839	230,769
Operating income	19,602	24,924	55,644	69,894
Interest expense, net	8,571	8,140	25,145	24,342
Loss on extinguishment of debt			659
Income before income taxes	11,031	16,784	29,840	45,552
Income tax expense	4,521	5,450	12,367	12,683
Net income	6,510	11,334	17,473	32,869
Net loss-noncontrolling interest		(34)		(110)
Net income-Res-Care, Inc.	6,510	11,368	17,473	32,979
Other comprehensive income:
Foreign currency translation adjustments	(263)	56	(292)	(358)
Comprehensive income (loss) attributable to Res-Care, Inc.	6,247	11,424	17,181	32,621
Total comprehensive income	$ 6,247	$ 11,390	$ 17,181	$ 32,511

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net income	$ 17,473	$ 32,869
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	27,489	25,535
Amortization of deferred debt issuance costs	1,753	2,612
Share-based compensation	1,510	2,376
Deferred income taxes, net	(4,058)	1,480
Provision for losses on accounts receivable	8,214	4,430
Loss on extinguishment of debt	659
Loss on sale of assets	207	81
Changes in operating assets and liabilities	7,469	(13,935)
Cash provided by operating activities	60,716	55,448
Cash flows from investing activities:
Purchases of property and equipment	(17,980)	(15,007)
Acquisitions of businesses, net of cash acquired	(15,057)	(19,995)
Proceeds from sale of assets	555	344
Cash used in investing activities	(32,482)	(34,658)
Cash flows from financing activities:
Long-term debt repayments	(176,078)	(14,190)
Long-term debt borrowings	275,000
Payments on obligations under capital leases	(5,502)	(5,446)
Dividend paid	(122,448)
Debt issuance costs	(3,631)	(2)
Cash used in financing activities	(32,659)	(19,638)
Effect of exchange rate changes on cash and cash equivalents	319	(96)
(Decrease) increase in cash and cash equivalents	(4,106)	1,056
Cash and cash equivalents at beginning of period	29,997	50,134
Cash and cash equivalents at end of period	25,891	51,190
Supplemental schedule of non-cash investing and financing activities:
Notes issued and contingent liabilities in connection with acquisitions	6,710	8,409
Capital lease obligations	247	1,336
Settlement of Seller obligations in connection with acquisitions		1,240
Purchases of property and equipment in accounts payable	$ 27

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 25,891	$ 29,997	$ 51,190	$ 50,134
Accounts receivable, net of allowance for doubtful accounts of $17,401 in 2014 and $11,900 in 2013	260,952	241,873
Refundable income taxes	807
Deferred income taxes	29,076	19,811
Non-trade receivables	4,128	6,852
Prepaid expenses and other current assets	22,187	19,578
Total current assets	343,041	318,111
Property and equipment, net	104,618	101,021
Goodwill	313,416	308,350
Other intangible assets, net	336,267	333,613
Other assets	25,536	25,182
Total assets	1,122,878	1,086,277	1,081,800
Current liabilities:
Trade accounts payable	39,305	34,089
Accrued expenses	141,328	120,803
Current portion of long-term debt	11,109	14,291
Obligations under capital leases	6,594	6,516
Deferred income taxes	5,447
Total current liabilities	203,783	175,699
Long-term liabilities	43,897	39,143
Long-term debt	446,872	345,506
Obligations under capital leases	14,671	13,724
Deferred income taxes	121,291	116,084
Total liabilities	830,514	690,156
Shareholder's equity:
Common stock, no par value, authorized 40,000,000 shares, issued and outstanding 21,344,741 in 2014 and 2013
Additional paid-in capital	248,563	247,053
Retained earnings	44,642	149,617
Accumulated other comprehensive income (loss)	(841)	(549)
Total shareholder's equity	292,364	396,121
Total liabilities and shareholder's equity	$ 1,122,878	$ 1,086,277