MModal Inc.

CIK:0001441567|SEC Filings

Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net revenues	$ 115,957	$ 108,439	$ 233,357	$ 219,675
Cost of revenues	65,172	65,453	131,602	131,474
Gross profit	50,785	42,986	101,755	88,201
Operating costs and expenses:
Selling, general and administrative	23,589	14,222	45,784	30,896
Research and development	3,624	2,190	6,568	4,892
Depreciation and amortization	12,155	8,879	24,544	17,297
(Benefit) cost of legal proceedings, settlements and accommodations	(211)	581	329	(6,932)
Acquisition and restructuring	5,287	4,391	16,373	11,269
Total operating costs and expenses	44,444	30,263	93,598	57,422
Operating income	6,341	12,723	8,157	30,779
Other income	814	530	2,678	1,473
Gain on sale of investment	4,439	0	4,439	0
Interest expense, net	(7,712)	(6,961)	(15,510)	(13,998)
Income (loss) before income taxes	3,882	6,292	(236)	18,254
Income tax provision (benefit)	836	886	(413)	2,030
Net income	3,046	5,406	177	16,224
Less: Net income attributable to noncontrolling interests	0	(271)	0	(1,777)
Net income attributable to MModal Inc.	$ 3,046	$ 5,135	$ 177	$ 14,447
Net income per common share
Basic (dollars per common share)	$ 0.06	$ 0.11	$ 0.00	$ 0.17
Diluted (dollars per common share)	$ 0.05	$ 0.11	$ 0.00	$ 0.17
Weighted average common shares outstanding:
Basic (in shares)	55,280	49,168	55,134	45,128
Diluted (in shares)	56,708	50,559	56,357	46,410

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating activities:
Net income	$ 177	$ 16,224
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	24,544	17,297
Customer accommodation program reversal	0	(9,658)
Deferred income taxes	(1,419)	705
Share based compensation	5,309	1,230
Provision for doubtful accounts	414	220
Non-cash interest expense	2,927	1,689
Other	1,192	42
Changes in operating assets and liabilities:
Accounts receivable	(5,717)	6,206
Other current assets	4,550	(4,658)
Other non-current assets	(20)	(5,024)
Accounts payable	(2,590)	(665)
Accrued expenses	(10,483)	8,109
Accrued compensation	2,988	(7,141)
Deferred revenue	4,503	(2,017)
Other non-current liabilities	902	396
Net cash provided by operating activities	27,277	22,955
Investing activities:
Purchase of property and equipment	(4,945)	(5,368)
Capitalized software	(3,708)	(5,564)
Payments for acquisitions, net of cash acquired	(3,068)	0
Other	205	0
Net cash used in investing activities	(11,516)	(10,932)
Financing activities:
Proceeds from debt	26,633	2,113
Repayment of debt	(56,486)	(27,092)
Deferred acquisition payments	(3,957)	0
Net proceeds from issuance of common stock	0	6,781
Other	(1,336)	0
Net cash used in financing activities	(35,146)	(18,198)
Effect of exchange rate changes	(1,129)	197
Net decrease in cash and cash equivalents	(20,514)	(5,978)
Cash and cash equivalents — beginning of period	29,557	66,779
Cash and cash equivalents — end of period	$ 9,043	$ 60,801

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 9,043	$ 29,557
Accounts receivable, net of allowance of $1,849 and $1,493, respectively	79,716	74,413
Other current assets	31,061	35,611
Total Current Assets	119,820	139,581
Property and equipment, net	22,511	24,367
Goodwill	164,410	161,866
Other intangible assets, net	160,787	173,294
Deferred income taxes	23,784	20,585
Other assets	10,480	12,102
Total Assets	501,792	531,795
Current liabilities:
Current portion of long-term debt	27,774	22,712
Accounts payable	9,218	11,808
Accrued expenses	30,251	39,728
Accrued compensation	13,213	10,225
Deferred acquisition payments	20,231	22,323
Deferred revenue	11,689	7,186
Total Current Liabilities	112,376	113,982
Long-term debt	238,784	273,822
Deferred acquisition payments, non-current	15,908	15,161
Other non-current liabilities	4,681	3,779
Total Liabilities	371,749	406,744
Commitments and contingencies (Note 10)
Stockholders' Equity
Preferred stock - $0.10 par value; authorized 25,000 shares; none issued or outstanding	0	0
Common stock - $0.10 par value; authorized 300,000 shares; 57,139 and 56,319 shares issued, respectively	5,705	5,632
Additional paid-in capital	174,331	167,440
Accumulated deficit	(44,205)	(44,382)
Treasury stock, at cost (89 and - shares, respectively)	(1,022)	0
Accumulated other comprehensive loss	(4,766)	(3,639)
Total Stockholders' Equity	130,043	125,051
Total Liabilities and Stockholders' Equity	$ 501,792	$ 531,795