IPC The Hospitalist Company, Inc.

CIK:0001410471|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net revenue	$ 184,787	$ 169,757	$ 549,584	$ 514,751
Operating expenses:
Cost of services—physician practice salaries, benefits and other	138,274	123,551	408,118	376,511
General and administrative	39,141	28,134	100,250	84,075
Net change in fair value of contingent consideration	(341)	2,390	5,517	1,312
Depreciation and amortization	1,544	1,375	4,520	4,006
Total operating expenses	178,618	155,450	518,405	465,904
Income from operations	6,169	14,307	31,179	48,847
Investment income	1	2	2	4
Interest expense	(376)	(361)	(936)	(1,057)
Income before income taxes	5,794	13,948	30,245	47,794
Income tax provision	2,202	5,341	11,493	18,304
Net income	$ 3,592	$ 8,607	$ 18,752	$ 29,490
Net income per share:
Basic (usd per share)	$ 0.21	$ 0.50	$ 1.08	$ 1.72
Diluted (usd per share)	$ 0.20	$ 0.49	$ 1.05	$ 1.68

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net income	$ 18,752	$ 29,490
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,520	4,006
Stock-based compensation expense	6,248	6,118
Changes in assets and liabilities:
Accounts receivable	(6,831)	(7,079)
Prepaid expenses and other current assets	8,139	9,645
Accounts payable and accrued liabilities	10,097	3,960
Accrued compensation	(3,825)	6,642
Medical malpractice and self-insurance reserves, net	1,184	2,064
Accrued contingent consideration	(8,022)	(1,023)
Net cash provided by operating activities	30,262	53,823
Investing activities
Acquisitions of physician practices	(92,944)	(35,138)
Purchase of property and equipment	(4,790)	(3,690)
Net cash used in investing activities	(97,734)	(38,828)
Financing activities
Proceeds from long-term debt	75,000	0
Repayments of long-term debt	(25,000)	(20,000)
Net proceeds from issuance of common stock	3,934	4,787
Excess tax benefits from stock-based compensation	600	678
Net cash provided by (used in) financing activities	54,534	(14,535)
Net (decrease) increase in cash and cash equivalents	(12,938)	460
Cash and cash equivalents, beginning of period	14,913	25,010
Cash and cash equivalents, end of period	1,975	25,470
Supplemental disclosure of cash flow information
Interest	884	1,061
Income taxes	$ 10,295	$ 14,453

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 1,975	$ 14,913
Accounts receivable, net	128,923	122,092
Insurance receivable for malpractice claims, current portion	12,691	12,564
Prepaid expenses and other current assets	12,737	20,876
Total current assets	156,326	170,445
Property and equipment, net	9,608	8,798
Goodwill	492,407	408,988
Other intangible assets, net	5,145	4,957
Insurance receivable for malpractice claims, less current portion	23,564	21,574
Total assets	687,050	614,762
Current liabilities:
Accounts payable and accrued liabilities	16,053	8,388
Accrued compensation	37,082	40,907
Payable for practice acquisitions, current portion	25,585	35,411
Medical malpractice and self-insurance reserves, current portion	13,325	13,079
Deferred tax liabilities, current portion	584	584
Short-term debt	130,000	0
Total current liabilities	222,629	98,369
Long-term debt	0	80,000
Medical malpractice and self-insurance reserves, less current portion	50,294	47,239
Payable for practice acquisitions, less current portion	2,970	9,500
Deferred tax liabilities, less current portion	13,828	11,737
Total liabilities	289,721	246,845
Stockholders’ equity:
Preferred stock, $0.001 par value, 15,000,000 shares authorized, none issued	0	0
Common stock. $0.001 par value, 50,000,000 shares authorized, 17,451,184 and 17,242,209 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	17	17
Additional paid-in capital	192,501	181,841
Retained earnings	204,811	186,059
Total stockholders’ equity	397,329	367,917
Total liabilities and stockholders’ equity	$ 687,050	$ 614,762