CRC Health, LLC

CIK:0001360474|SEC Filings

Discontinued Operations

9 Months Ended

Sep. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

NOTE 9. DISCONTINUED OPERATIONS

The results of operations for those facilities classified as discontinued operations are summarized below (in thousands). The three and nine months ended September 30, 2012 reflect the effects of the corrections in Note 1.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net client service revenues	$	2,437		$	7,361		$	12,730		$	22,307
Operating expenses ⁽¹⁾		18,102			8,678			42,548			26,184
Interest expense		—			—			—			3

Loss before income taxes		(15,665	)		(1,317	)		(29,818	)		(3,880	)
Gain (loss) on disposal of discontinued operations		(538	)		208			(522	)		208
Income tax benefit		(10,468	)		(908	)		(10,349	)		(1,768	)

Loss from discontinued operations	$	(4,659	)	$	(617	)	$	(18,947	)	$	(2,320	)

(1)	Operating expenses include asset impairments (see Note 7), severance and lease termination charges (see Note 8).

Overview and Basis of Presentation - Summary of Corrections in Condensed Consolidated Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	9 Months Ended
	Jun. 30, 2013	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ (2,656)	$ (9,151)	$ 6,874
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,187	15,248	15,106
Amortization of debt discount and capitalized financing costs	2,122	3,184	4,369
Goodwill and asset impairments	10,859	10,923	4,840
Loss on disposal of property and equipment	190	420	597
Provision for doubtful accounts	4,008	5,791	5,917
Stock-based compensation	1,332	2,015	1,727
Deferred income taxes	21		(1,861)
Changes in assets and liabilities:
Restricted cash	84	253	13
Accounts receivable	(7,399)	(9,858)	(7,014)
Prepaid expenses	(2,642)	(1,142)	2,410
Income taxes receivable and payable	(1,130)	(4,914)	8,865
Other current assets	(7)	13	729
Accounts payable	841	628	160
Accrued liabilities	4,924	12,499	1,069
Other current liabilities	4,342	(1,503)	422
Other long-term assets	821	914	(1,186)
Other long-term liabilities	(529)	9,362	51
Net cash provided by operating activities	25,368	34,682	43,088
As Previously Reported [Member]
Cash flows from operating activities:
Net income (loss)	(2,214)		6,921
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,187		14,791
Amortization of debt discount and capitalized financing costs	2,122		4,369
Goodwill and asset impairments	10,859		4,840
Loss on disposal of property and equipment	190		1,022
Provision for doubtful accounts	4,008		5,917
Stock-based compensation	1,332		1,727
Deferred income taxes	21		(1,791)
Changes in assets and liabilities:
Restricted cash	84		13
Accounts receivable	(6,599)		(7,014)
Prepaid expenses	(2,642)		2,410
Income taxes receivable and payable	(2,372)		8,865
Other current assets	(7)		729
Accounts payable	841		160
Accrued liabilities	4,924		842
Other current liabilities	4,342		422
Other long-term assets	821		(1,186)
Other long-term liabilities	(529)		51
Net cash provided by operating activities	25,368		43,088
Out of Period Corrections [Member]
Cash flows from operating activities:
Net income (loss)			63
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			75
Loss on disposal of property and equipment			(425)
Deferred income taxes			60
Changes in assets and liabilities:
Accrued liabilities			227
Intangible Assets Amortization Corrections [Member]
Cash flows from operating activities:
Net income (loss)			(110)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			240
Deferred income taxes			(130)
Corrections [Member]
Cash flows from operating activities:
Net income (loss)	(442)
Changes in assets and liabilities:
Accounts receivable	(800)
Income taxes receivable and payable	$ 1,242

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 12,920	$ 19,058
Restricted cash	111	364
Accounts receivable, net	40,748	36,737
Prepaid expenses	5,749	4,781
Other current assets	2,575	2,591
Income taxes receivable		1,109
Deferred income taxes	6,352	6,352
Current assets of discontinued operations	13,413	2,759
Total current assets	81,868	73,751
Property and equipment, net	133,587	130,381
Goodwill	519,093	518,953
Other intangible assets, net	279,855	294,085
Other assets, net	17,446	20,396
Total assets	1,031,849	1,037,566
Current liabilities:
Accounts payable	6,446	6,801
Accrued payroll and related expenses	20,665	18,333
Accrued interest	4,773	9,412
Accrued expenses	20,273	8,721
Income taxes payable	4,324
Current portion of long-term debt		4,840
Deferred revenue	8,474	9,494
Other current liabilities	1,114	1,592
Current liabilities of discontinued operations	5,494	2,372
Total current liabilities	71,563	61,565
Long-term debt	567,485	584,535
Other long-term liabilities	8,468	8,740
Long-term liabilities of discontinued operations	15,905	6,275
Deferred income taxes	107,290	107,289
Total liabilities	770,711	768,404
Commitments and contingencies
Stockholders' equity
Common stock, $0.001 par value - 1,000 shares authorized, issued and outstanding
Additional paid-in capital	466,062	464,932
Accumulated deficit	(204,851)	(195,699)
Accumulated other comprehensive loss	(73)	(71)
Total stockholders' equity	261,138	269,162
Total liabilities and stockholders' equity	$ 1,031,849	$ 1,037,566