iKang Healthcare Group, Inc.

CIK:0001524190|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 563,932	$ 435,713	$ 370,812
Cost of revenues	325,656	262,134	210,909
Gross profit	238,276	173,579	159,903
Operating expenses:
Selling and marketing expenses	96,594	74,304	64,763
General and administrative expenses (including share-based compensation expenses of $1,949, $1,941 and $34,822 in 2016, 2017 and 2018, respectively)	126,255	82,783	65,422
Research and development expenses	3,055	3,194	3,716
Total operating expenses	225,904	160,281	133,901
Income from operations	12,372	13,298	26,002
Interest expense	(20,191)	(13,880)	(4,603)
Interest income	382	939	785
Other income			1,874
Income/(loss)before provision for income taxes and gain/(loss) from equity method investments	(7,437)	357	24,058
Income tax expenses	6,791	3,354	5,838
Income/(loss) before loss from equity method investments	(14,228)	(2,997)	18,220
Loss from equity method investments	(2,448)	(9,547)	(1,732)
Net income/(loss)	(16,676)	(12,544)	16,488
Less: Net income/(loss) attributable to non-controlling interest	633	(1,293)	(1,837)
Net income/(loss) attributable to iKang Healthcare Group, Inc.	(17,309)	(11,251)	18,325
Net income/(loss) attributable to common shareholders of iKang Healthcare Group, Inc.	$ (17,309)	$ (11,251)	$ 18,325
Net income/(loss) per share attributable to common shareholders of iKang Healthcare Group, Inc.
Basic (in dollars per share)	$ (0.50)	$ (0.33)	$ 0.55
Diluted (in dollars per share)	$ (0.50)	$ (0.33)	$ 0.54
Weighted average shares used in calculating net (loss) income per common share
Basic (in shares)	34,295,160	34,060,579	33,583,005
Diluted (in shares)	34,295,160	34,060,579	34,235,542

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss)	$ (16,676)	$ (12,544)	$ 16,488
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	42,182	37,413	30,394
Share-based compensation expenses	34,822	1,941	1,949
Impairment of property and equipment	708	276	281
Loss on liquidation of a subsidiary			106
Gain from disposal of cost method investment			(1,772)
Allowance for doubtful accounts	7,317	6,136	8,509
Loss from equity method investments	2,448	9,547	1,732
Changes in assets and liabilities
Accounts receivable	(65,799)	(16,271)	(22,632)
Inventories	(1,654)	(3,103)	(1,279)
Prepaid expenses and other current assets	(6,344)	3,165	(10,069)
Deferred tax assets	(9,925)	(11,476)	(8,296)
Rental deposit and other long-term assets	(3,916)	(2,150)	(2,781)
Accounts payable	8,629	9,337	4,766
Accrued expenses and other current liabilities	7,453	18,741	3,979
Deferred revenues	23,165	6,846	23,914
Income tax payable	2,327	4,368	702
Deferred government subsidy			(61)
Deferred tax liabilities	(1,732)	(2,183)	(2,328)
Net cash provided by generated from operating activities	23,005	50,043	43,602
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	408	30,124	20,772
Term deposits	4,528	7,679	2,361
Purchase of property and equipment	(34,912)	(63,389)	(37,024)
Purchase of intangible assets			(157)
Payments for business acquisitions (net of cash acquired of $10,165 and $6 and $516 for years ended March 31, 2016, 2017 and 2018, respectively)	(1,307)	(2,371)	(37,249)
Prepayment for business acquisitions	(879)
Payment for long-term investments	(3,149)	(5,473)	(204,414)
Return of prepayment for long-term investments		4,000
Proceeds from sale of cost method investment			1,897
Loan provided to related parties		(2,508)	(4,719)
Repayment of loan by related parties	140	2,324
Proceeds from disposal of the subsidiaries	2,231
Payment of loan receivables			(1,000)
Net cash used in investing activities	(34,783)	(32,011)	(261,533)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from exercise of share options	1,324	1,324	8,035
Capital contribution from non-controlling interest shareholders	909	134	567
Return of capital to non-controlling interest shareholders	(572)
Dividend distribution to non-controlling interest shareholders	(884)	(704)	(795)
Payments for business acquisitions			(1,853)
Proceeds from financing agreement in relation with New China Life Insurance Health Investment Management Co., Ltd	31,886
Proceeds from long-term borrowings	9,565		232,744
Proceeds from short-term borrowings	65,679	37,176	54,126
Repayments of short-term borrowings	(103,403)	(60,610)	(55,359)
Repayments of long-term borrowings		(29,741)
Net cash provided by (used in) financing activities	4,504	(52,421)	237,465
Effect of exchange rate on cash and cash equivalents	5,277	(8,824)	(8,759)
Net increase (decrease) in cash and cash equivalents	(1,997)	(43,213)	10,775
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR	64,898	108,111	97,336
CASH AND CASH EQUIVALENTS AT END OF THE YEAR	62,901	64,898	108,111
Supplemental cash flow information
Income tax paid	17,894	11,649	13,327
Interest paid	24,673	3,600	1,957
Supplemental non-cash financing and investing activities
Payable for business acquisitions	(10,127)	(6,436)	(9,350)
Payable for purchase of long term investments			3,743
Payable for purchase of property and equipment	12,456	11,830	7,109
Prepayment for business acquisitions	4,524	3,322	10,570
Prepayment for long term investments			4,000
Prepayment for purchase of property and equipment	17,699	12,677	11,318
Capital contribution, through other assets, relating to non-controlling interest	461
Shenzhen Hospital Management
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of non-controlling interest		$ (2,397)
iKang Shanghai Gubei
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of non-controlling interest			(788)
Fujian iKang
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of non-controlling interest	$ (1,843)
Beijing Tianzhikangjian
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of non-controlling interest			$ (1,212)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Current assets
Cash and cash equivalents	$ 62,901	$ 64,898
Restricted cash		392
Term deposits		4,359
Accounts receivable, net of allowance for doubtful accounts of $14,261 and $23,142 as of March 31, 2017 and 2018, respectively	149,259	79,576
Inventories	9,261	6,781
Deferred tax assets-current		9,635
Amount due from related parties	7,019	4,538
Prepaid expenses and other current assets	66,939	49,736
Total current assets	295,379	219,915
Property and equipment, net	173,283	163,081
Acquired intangible assets, net	21,993	25,852
Goodwill	117,995	107,237
Long-term investments	196,816	180,758
Deferred tax assets-non-current	39,380	16,698
Rental deposit and other non-current assets	20,309	14,950
TOTAL ASSETS	865,155	728,491
Current liabilities
Accounts payable (including accounts payable of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of $34,637 and $43,840 as of March 31, 2017 and 2018, respectively)	52,800	39,892
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of $48,910 and $60,281 as of March 31, 2017 and 2018, respectively)	76,586	59,278
Income tax payable (including income tax payable of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of $6,414 and $13,523 as of March 31, 2017 and 2018, respectively)	15,579	11,951
Deferred revenues (including deferred revenues of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of $57,361 and $87,388 as of March 31, 2017 and 2018, respectively)	95,422	64,740
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of nil and $3,480 as of March 31, 2017 and 2018, respectively)	3,692
Short term borrowings (including short term borrowings of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of $111,299 and $196,450 as of March 31, 2017 and 2018, respectively)	196,450	111,299
Total current liabilities	440,529	287,160
Long-term borrowings (including long term borrowings of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of 101,697 and $38,884 as of March 31, 2017 and 2018, respectively)	38,884	101,697
Deferred tax liabilities-non-current (including deferred tax liabilities-non-current of the consolidated VIEs and VIEs' subsidiaries without recourse to iKang Healthcare Group, Inc. of $7,009 and $4,944 as of March 31, 2017 and 2018, respectively)	5,917	7,229
TOTAL LIABILITIES	485,330	396,086
Commitments and contingencies (Note 22)
iKang Healthcare Group, Inc. shareholders' equity
Additional paid-in capital	472,677	436,649
Statutory reserve	18,396	14,761
Accumulated deficit	(133,642)	(112,698)
Accumulated other comprehensive loss	(2,071)	(26,622)
Total iKang Healthcare Group, Inc. shareholders' equity	355,707	312,437
Non-controlling interests	24,118	19,968
TOTAL EQUITY	379,825	332,405
TOTAL LIABILITIES AND EQUITY	865,155	728,491
Class A common shares
iKang Healthcare Group, Inc. shareholders' equity
Common shares	339	339
Class C common shares
iKang Healthcare Group, Inc. shareholders' equity
Common shares	$ 8	$ 8