Integrated Healthcare Holdings Inc

CIK:0001051488|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]
Patient service revenues (net of contractual allowances and discounts)	$ 97,072	$ 138,491	$ 334,592	$ 229,238
Provision for bad debts	(12,811)	(13,509)	(27,176)	(23,436)
Net patient service revenues	84,261	124,982	307,416	205,802
Other operating revenues	950	880	1,759	1,725
Total operating revenue	85,211	125,862	309,175	207,527
Operating expenses:
Salaries and benefits	69,343	53,287	125,406	106,278
Supplies	13,172	13,978	27,121	28,029
Other operating expenses	25,030	53,062	76,259	68,105
Depreciation and amortization	2,092	960	4,209	1,918
Total Operating Expenses	109,637	121,287	232,995	204,330
Operating income (loss)	(24,426)	4,575	76,180	3,197
Other expense:
Interest expense, net	(2,328)	(3,018)	(5,135)	(5,450)
Loss on warrants	(7,376)	(1,125)	(14,021)	(395)
Total Other Expense	(9,704)	(4,143)	(19,156)	(5,845)
Income (loss) before income tax provision (benefit)	(34,130)	432	57,024	(2,648)
Income tax provision (benefit)	(14,078)	(1,922)	31,374	(1,878)
Net income (loss)	(20,052)	2,354	25,650	(770)
Net (income) loss attributable to noncontrolling interests (Note 9)	(331)	228	(628)	(122)
Net income (loss) attributable to Integrated Healthcare Holdings, Inc.	$ (20,383)	$ 2,582	$ 25,022	$ (892)
Earnings (loss) per common share attributable to Integrated Healthcare Holdings, Inc. stockholders
Basic	$ (0.08)	$ 0.01	$ 0.10	$ 0.00
Diluted	$ (0.08)	$ 0.01	$ 0.05	$ 0.00
Weighted average shares outstanding
Basic	255,307,000	255,307,000	255,307,000	255,307,000
Diluted	255,307,000	256,987,000	472,878,000	255,307,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ 25,650	$ (770)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization of property and equipment	4,209	1,918
Provision for bad debts	27,176	23,436
Amortization of debt discount	385	530
Loss on warrants	14,021	395
Deferred tax assets, net	6,708	0
Changes in operating assets and liabilities:
Accounts receivable	(24,432)	(24,260)
Inventories of supplies	(242)	169
Due from governmental payers	(1,893)	(2,665)
Hospital quality assurance fees receivable	(62,520)	(20,828)
Prepaid expenses - hospital quality assurance fees	0	(9,174)
Prepaid income taxes	0	(1,257)
Prepaid insurance, other prepaid expenses and current assets, and other assets	600	(3,125)
Accounts payable	(5,844)	(1,209)
Accrued compensation and benefits	12,707	(1,709)
Hospital quality assurance fees payable	4,624	28,519
Due to governmental payers	(9)	0
Income taxes payable	10,406	0
Accrued insurance retentions and other current liabilities	1,805	459
Net cash provided by (used in) operating activities	13,351	(9,571)
Cash flows from investing activities:
Decrease in restricted cash	8	2
Additions to property and equipment	(543)	(1,242)
Net cash used in investing activities	(535)	(1,240)
Cash flows from financing activities:
Proceeds from (paydown on) revolving line of credit, net	(10,876)	10,658
Noncontrolling interests distributions	(1,532)	(1,012)
Payments on capital lease obligations	(547)	(544)
Net cash provided by (used in) financing activities	(12,955)	9,102
Net decrease in cash and cash equivalents	(139)	(1,709)
Cash and cash equivalents, beginning of period	3,545	11,829
Cash and cash equivalents, end of period	3,406	10,120
Supplemental information:
Cash paid for interest	4,653	4,590
Cash paid for income taxes	$ 14,320	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Sep. 30, 2013	Mar. 31, 2013
Current assets:
Cash and cash equivalents	$ 3,406,000	$ 3,545,000
Restricted cash	5,000	13,000
Accounts receivable, net of allowance for doubtful accounts of $33,567 and $21,143, respectively	60,077,000	62,821,000
Inventories of supplies	6,980,000	6,738,000
Due from governmental payers	7,775,000	5,882,000
Hospital quality assurance fee receivable	70,210,000	7,690,000
Prepaid insurance	1,359,000	115,000
Deferred tax assets, net	0	6,328,000
Other prepaid expenses and current assets	7,364,000	9,208,000
Total current assets	157,176,000	102,340,000
Property and equipment, net	61,706,000	63,988,000
Deferred tax assets, net	0	380,000
Total assets	218,882,000	166,708,000
Current liabilities:
Revolving line of credit, net of discount	18,730,000	29,527,000
Accounts payable	57,565,000	62,515,000
Accrued compensation and benefits	32,341,000	19,634,000
Accrued insurance retentions	14,490,000	12,938,000
Hospital quality assurance fees payable	11,850,000	7,226,000
Due to governmental payers	170,000	179,000
Income taxes payable	13,275,000	2,869,000
Other current liabilities	4,922,000	4,111,000
Total current liabilities	153,343,000	138,999,000
Debt, noncurrent, net of discount	45,836,000	45,530,000
Warrant liability, noncurrent	19,297,000	5,276,000
Capital lease obligations, net of current portion of $1,169 and $1,101 respectively	6,174,000	6,789,000
Total liabilities	224,650,000	196,594,000
Commitments and contingencies
Integrated Healthcare Holdings, Inc. stockholders' equity (deficiency):
Common stock, $0.001 par value; 800,000 shares authorized; 255,307 shares issued and outstanding	255,000	255,000
Additional paid in capital	62,911,000	62,911,000
Accumulated deficit	(62,343,000)	(87,365,000)
Total Integrated Healthcare Holdings, Inc. stockholders' equity (deficiency)	823,000	(24,199,000)
Noncontrolling interests	(6,591,000)	(5,687,000)
Total stockholders' equity (deficiency)	(5,768,000)	(29,886,000)
Total liabilities and stockholders' equity (deficiency)	$ 218,882,000	$ 166,708,000