UNIVERSITY GENERAL HEALTH SYSTEM, INC.

CIK:0001383960|SEC Filings

Consolidated Statements of Operations (USD $)	12 Months Ended
Consolidated Statements of Operations (USD $)	Dec. 31, 2013	Dec. 31, 2012
Revenues
Patient service revenues, net of contractual adjustments	$ 163,935,735	$ 112,184,538
Provision for doubtful accounts	(26,392,248)	(10,384,706)
Net patient service revenue less provision for doubtful accounts	137,543,487	101,799,832
Senior living revenues	7,922,924	7,712,750
Support services revenues	7,477,014	2,501,449
Other revenues	11,045,561	1,209,227
Total revenues	163,988,986	113,223,258
Operating expenses
Salaries, wages and benefits	77,569,460	39,627,334
Medical supplies	28,669,728	16,194,606
General and administrative expenses (includes related party expenses of $2,327,050 and $1,921,501, respectively)	63,379,990	32,766,205
Gain on extinguishment of liabilities	0	(3,644,068)
Depreciation and amortization (includes related party expenses of $0 and $685,162, respectively)	11,476,315	9,215,713
Total operating expenses	181,095,493	94,159,790
Operating income (loss)	(17,106,507)	19,063,468
Other income (expense)
Interest expense, net of interest income of $141,047 and $85,000 (includes related party interest expense $131,227 and $2,289,287)	(7,100,683)	(6,111,582)
Other income (expense)	1,591,711	(381,026)
Direct investor expense	(4,918,121)	(6,853,356)
Change in fair market value of derivatives	(2,019,076)	(4,937,170)
Income (loss) before income tax	(29,552,676)	780,334
Income tax expense	5,270,052	4,564,195
Loss before noncontrolling interest	(34,822,728)	(3,783,861)
Net income attributable to noncontrolling interests	276,560	363,531
Net loss attributable to the Company	(34,546,168)	(3,420,330)
Less: Cash dividend-Convertible Preferred C Stock	(141,740)	(46,921)
Less: Accretion non-cash dividend-Convertible Preferred C Stock	(1,019,789)	(512,190)
Net loss attributable to common shareholders	$ (35,707,697)	$ (3,979,441)
Basic and diluted loss per share data:
Basic loss per common share	$ (0.10)	$ (0.01)
Basic weighted average shares outstanding	358,688,151	311,995,342
Diluted loss per common share	$ (0.10)	$ (0.01)
Diluted weighted average shares outstanding	358,688,151	311,995,342

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net loss	$ (34,822,728)	$ (3,783,861)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	11,476,315	9,215,713
Provision for doubtful accounts	26,392,248	10,384,706
Gain on sale of assets and other, net	1,700,411	(37,451)
Gain on extinguishment of liabilities	0	(3,644,068)
Deferred income tax expense (benefits)	2,478,897	(2,388,555)
Compensation expense	180,000
Warrants issuance costs		392,609
Direct investor expense	4,918,122	6,853,356
Change in fair market value of derivatives	2,019,076	4,937,170
Net changes in operating assets and liabilities:
Accounts receivable	(28,553,505)	(18,869,744)
Related party payables	(1,323)	298,729
Inventories	(989,478)	484,349
Prepaid expenses and other assets	(593,129)	(2,108,971)
Accounts payable, accrued expenses and taxes payable	24,762,947	6,583,479
Deferred revenues	161,280	(76,030)
Net cash provided by operating activities	9,129,133	8,241,431
Cash flows from investing activities:
Additions and acquisitions to property, equipment and leasehold improvements	(7,286,545)	(5,850,056)
Business acquisitions, net of cash acquired	(2,055,245)	(2,180,203)
Investments in unconsolidated affiliates	(65,000)	(249,493)
Net cash used in investing activities	(9,406,790)	(8,279,752)
Cash flows from financing activities:
Proceeds from revolving credit facility borrowings	113,993,564	39,253,933
Payments of revolving credit facility borrowings	(106,500,571)	(26,674,000)
Distributions to noncontrolling interests	0	(172,762)
Issuance of common stock	2,200,000	5,403,832
Issuance of preferred stock	2,974,181	3,794,669
Dividend paid on Preferred C Convertible Stock	(163,345)	(158,444)
Borrowings under notes payable	5,245,341	12,890,617
Payments on notes payable	(15,355,934)	(16,945,280)
Payments on debt issuance costs	0	(1,511,251)
Borrowings under notes payable to related party	191,493	34,976
Payments on notes payable to related party	(879,000)	(453,057)
Payments on capital leases	(907,404)	(6,323,675)
Payments on line of credits	0	(8,451,025)
Net cash provided by financing activities	798,325	688,533
Net increase in cash and cash equivalents	520,668	650,212
Cash and cash equivalents:
Beginning of period	1,188,230	538,018
End of period	1,708,898	1,188,230
Supplemental disclosures of cash flow information:
Interest paid	6,679,064	6,194,924
Income taxes paid	0	385,966
Supplemental noncash investing activities:
Property and equipment additions financed	1,081,555	819,236
Supplemental noncash financing activities:
Noncash consideration paid for acquisitions	3,123,651	37,164,490
Issuance of common stock	1,794,903	1,237,682
Transfer from related party and account payables to debt obligations	0	2,510,836
Issuance on conversions of preferred stock	2,892,735	1,324,600
Derivative ceases to exist	11,637,078	7,702,031
Preferred Stock Series C [Member]
Supplemental noncash financing activities:
Dividend on Preferred C Convertible Stock	$ 141,740	$ 46,921

Consolidated Balance Sheets (USD $)	Dec. 31, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 1,708,898	$ 1,188,230
Accounts receivable, less allowance for doubtful accounts of $36,802,691 and $21,422,475	23,102,262	20,941,005
Inventories	2,447,567	1,458,089
Prepaid expenses and other assets	6,635,294	3,986,378
Current deferred taxes	1,146,358	1,729,150
Total Current Assets	35,040,379	29,302,852
Long-Term Assets
Property, equipment and leasehold improvements, net	98,883,912	96,965,889
Intangible assets, net	4,499,653	5,919,000
Deferred taxes	(1,236,701)	659,405
Goodwill	42,613,953	39,271,829
Other non-current assets, net	2,227,366	2,721,587
Total Long-Term Assets	148,224,884	145,537,710
Total Assets	183,265,263	174,840,562
Current Liabilities
Accounts payable	21,696,595	9,699,411
Payables to related parties	2,131,730	2,133,053
Accrued expenses	21,280,028	11,938,589
Payroll taxes payable	5,852,673	1,610,836
Income tax payable	14,604,353	11,813,198
Deferred revenue	400,126	238,846
Notes payable, current portion	24,369,226	26,089,305
Notes payable to related parties, current portion	1,165,873	1,853,380
Capital lease obligations, current portion	859,862	826,800
Derivative liability	516,650	4,897,053
Total Current Liabilities	92,877,116	71,100,471
Long-Term Liabilities
Lines of credit	20,072,926	12,579,933
Notes payable, less current portion	41,654,523	46,947,860
Deferred taxes	1,236,700	0
Capital lease obligations, less current portion	31,069,580	30,928,491
Total Long-Term Liabilities	94,033,729	90,456,284
Total Liabilities	186,910,845	161,556,755
Commitments and contingencies
Shareholders' Equity (Deficit)
Common stock, par value $0.001, 480,000,000 shares authorized, 371,223,630 and 343,459,294 shares issued and outstanding, respectively	371,224	343,459
Additional paid-in-capital	83,916,725	65,419,774
Shareholders' receivables	(2,539,667)	(2,828,251)
Accumulated deficit	(93,057,957)	(57,186,915)
Total shareholders' equity (Deficit)	(11,309,672)	5,748,070
Noncontrolling interest	4,692,869	4,969,429
Total equity (Deficit)	(6,616,803)	10,717,499
Total Liabilities and Shareholders' Equity (Deficit)	183,265,263	174,840,562
Preferred Stock Series C [Member]
Long-Term Liabilities
Preferred stock, Value	2,971,221	2,566,308
Shareholders' Equity (Deficit)
Preferred stock, Value	2,971,221	2,566,308
Preferred Stock Series B [Member]
Long-Term Liabilities
Preferred stock, Value	3	3
Shareholders' Equity (Deficit)
Preferred stock, Value	$ 3	$ 3