Alliance HealthCare Services, Inc

CIK:0000817135|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenues	$ 137,261	$ 125,317	$ 267,197	$ 249,041
Costs and expenses:
Cost of revenues, excluding depreciation and amortization	78,154	69,939	153,203	140,853
Selling, general and administrative expenses	22,003	23,175	45,538	48,440
Transaction costs	152	431	314	848
Shareholder transaction costs	2,523	1,498	3,392	2,507
Severance and related costs	389	708	1,023	2,424
Impairment charges	1,085	0	1,085	0
Depreciation expense	13,783	13,730	27,856	26,778
Amortization expense	3,274	2,494	6,549	4,937
Interest expense, net	8,937	8,872	17,637	16,367
Other income, net	(394)	(3,546)	(877)	(4,334)
Total costs and expenses	129,906	117,301	255,720	238,820
Income before income taxes, earnings from unconsolidated investees, and noncontrolling interest	7,355	8,016	11,477	10,221
Income tax expense	2,379	2,221	2,376	1,275
Earnings from unconsolidated investees	(367)	(393)	(703)	(645)
Net income	5,343	6,188	9,804	9,591
Less: Net income attributable to noncontrolling interest	(5,654)	(3,729)	(10,729)	(8,322)
Net (loss) income attributable to Alliance HealthCare Services, Inc.	(311)	2,459	(925)	1,269
Comprehensive (loss) income, net of taxes:
Net income	5,343	6,188	9,804	9,591
Unrealized (loss) gain on hedging transactions, net of taxes of $0, $0, $0 and $0	(19)	84	(6)	46
Reclassification adjustment for losses realized and included in net loss, net of taxes of $0, $0, $0 and $0	10	0	29	0
Total comprehensive income, net of taxes	5,334	6,272	9,827	9,637
Comprehensive income attributable to noncontrolling interest	(5,654)	(3,729)	(10,729)	(8,322)
Comprehensive (loss) income attributable to Alliance HealthCare Services, Inc.	$ (320)	$ 2,543	$ (902)	$ 1,315
(Loss) income per common share attributable to Alliance HealthCare Services, Inc.:
Basic	$ (0.03)	$ 0.23	$ (0.08)	$ 0.12
Diluted	$ (0.03)	$ 0.23	$ (0.08)	$ 0.12
Weighted average number of shares of common stock and common stock equivalents:
Basic	10,989	10,882	10,981	10,771
Diluted	10,989	10,893	10,981	10,796

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities:
Net income	$ 9,804	$ 9,591
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	1,167	1,356
Share-based payment	684	1,780
Depreciation and amortization	34,405	31,715
Amortization of deferred financing costs	4,924	3,312
Accretion of discount on long-term debt	263	254
Adjustment of derivatives to fair value	(11)	(45)
Distributions from unconsolidated investees	523	752
Earnings from unconsolidated investees	(703)	(645)
Deferred income taxes	2,148	940
Gain on sale of assets, net	(664)	(169)
Impairment charges	1,085	0
Changes in fair value of contingent consideration related to acquisitions	150	(3,640)
Excess tax benefit from share-based payment arrangements	0	436
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable	(4,054)	(1,389)
Prepaid expenses	851	(119)
Other current assets	(227)	674
Other assets	68	4,240
Accounts payable	(4,583)	2,578
Accrued compensation and related expenses	(4,708)	2,820
Accrued interest payable	8	(70)
Income taxes payable	50	(36)
Other accrued liabilities	8,281	3,614
Net cash provided by operating activities	49,461	57,949
Investing activities:
Equipment purchases	(11,205)	(33,975)
Increase in deposits on equipment	(8,004)	(13,847)
Acquisitions, net of cash received	(2,022)	(6,659)
Proceeds from sale of assets	971	370
Net cash used in investing activities	(20,260)	(54,111)
Financing activities:
Principal payments on equipment debt and capital lease obligations	(8,141)	(8,035)
Proceeds from equipment debt	2,154	4,809
Principal payments on term loan facility	(2,600)	(2,600)
Principal payments on revolving loan facility	(20,000)	(24,000)
Proceeds from revolving loan facility	13,500	21,000
Principal payment on note payable	(2,954)	0
Payments of debt issuance costs and deferred financing costs	(288)	(25,059)
Distributions to noncontrolling interest in subsidiaries	(11,351)	(11,703)
Contributions from noncontrolling interest in subsidiaries	985	0
Payments for employee share-based compensation payroll taxes	(74)	0
Excess tax benefit from share-based payment arrangements	0	(436)
Issuance of common stock	0	1
Proceeds from exercise of stock options	0	614
Settlement of contingent consideration related to acquisitions	(20)	(810)
Proceeds from shareholder transaction	0	28,630
Net cash used in financing activities	(28,789)	(17,589)
Net increase (decrease) in cash and cash equivalents	412	(13,751)
Cash and cash equivalents, beginning of period	22,241	38,070
Cash and cash equivalents, end of period	22,653	24,319
Supplemental disclosure of cash flow information:
Interest paid	12,561	12,957
Income taxes paid (refunded), net	47	(92)
Supplemental disclosure of non-cash investing and financing activities:
Capital lease obligations related to the purchase of equipment	3,442	1,499
Changes in equipment purchases in accounts payable and accrued equipment	(1,446)	352
Note payable assumed in connection with acquisition	2,954	0
Noncontrolling interest assumed in connection with acquisitions	488	2,948
Fair value of contingent consideration related to acquisitions	$ 0	$ 420

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 22,653	$ 22,241
Accounts receivable, net of allowance for doubtful accounts of $4,022 in 2017 and $4,008 in 2016	80,922	77,496
Prepaid expenses	8,823	9,568
Other current assets	4,456	3,853
Total current assets	116,854	113,158
Plant, property and equipment, net	205,058	204,814
Goodwill	120,773	119,130
Other intangible assets, net	193,060	198,977
Other assets	18,006	23,785
Total assets	653,751	659,864
Current liabilities:
Accounts payable	21,681	28,185
Accrued compensation and related expenses	20,247	24,895
Accrued interest payable	3,316	3,308
Current portion of long-term debt	33,270	17,298
Current portion of obligations under capital leases	4,125	3,354
Other accrued liabilities	34,681	29,323
Total current liabilities	117,320	106,363
Long-term debt, net of current portion	490,668	515,407
Obligations under capital leases, net of current portion	13,941	12,686
Deferred income taxes	27,966	25,818
Other liabilities	12,800	9,093
Total liabilities	662,695	669,367
Commitments and contingencies (Note 13)
Stockholders’ deficit:
Preferred stock, $0.01 par value; 1,000,000 shares authorized and no shares issued and outstanding	0	0
Common stock, $0.01 par value; 100,000,000 shares authorized; 10,989,273 and 10,970,937 issued in 2017 and 2016, respectively; 10,831,300 and 10,812,964 outstanding in 2017 and 2016, respectively	110	110
Treasury stock, at cost - 157,973 shares in 2017 and 2016	(3,138)	(3,138)
Additional paid-in capital	61,963	61,353
Accumulated comprehensive income	33	10
Accumulated deficit	(198,825)	(197,900)
Total stockholders’ deficit attributable to Alliance HealthCare Services, Inc.	(139,857)	(139,565)
Noncontrolling interest	130,913	130,062
Total stockholders’ deficit	(8,944)	(9,503)
Total liabilities and stockholders’ deficit	$ 653,751	$ 659,864