Envision Healthcare Holdings, Inc.

CIK:0001578318|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Revenue, net of contractual discounts	$ 2,919,477	$ 2,478,177	$ 8,661,352	$ 7,147,906
Provision for uncompensated care	(1,280,727)	(1,110,807)	(3,784,026)	(3,181,776)
Net revenue	1,638,750	1,367,370	4,877,326	3,966,130
Compensation and benefits	1,159,244	997,213	3,427,921	2,874,328
Operating expenses	256,481	165,099	772,877	472,954
Insurance expense	35,925	41,091	108,799	114,783
Selling, general and administrative expenses	42,753	29,463	122,336	87,161
Depreciation and amortization expense	60,886	44,547	178,075	129,364
Restructuring charges	164	30,000	7,726	30,000
Income from operations	83,297	59,957	259,592	257,540
Interest income from restricted assets	283	149	749	442
Interest expense, net	(39,300)	(27,579)	(117,751)	(82,360)
Realized gains (losses) on investments	(151)	0	(191)	(34)
Other income (expense), net	756	(221)	743	(593)
Income (loss) before income taxes and equity in earnings of unconsolidated subsidiary	44,885	32,306	143,142	174,995
Income tax benefit (expense)	(16,057)	(13,795)	(53,611)	(69,009)
Income (loss) before equity in earnings of unconsolidated subsidiary	28,828	18,511	89,531	105,986
Equity in earnings of unconsolidated subsidiary	123	59	1,758	202
Net income (loss)	28,951	18,570	91,289	106,188
Less: Net (income) loss attributable to noncontrolling interest	(3,062)	(1,334)	(10,118)	(3,161)
Net income (loss) attributable to Envision Healthcare Holdings, Inc.	$ 25,889	$ 17,236	$ 81,171	$ 103,027
Net income (loss) per share attributable to Envision Healthcare Holdings, Inc.:
Basic (in dollars per share)	$ 0.14	$ 0.09	$ 0.43	$ 0.56
Diluted (in dollars per share)	$ 0.13	$ 0.09	$ 0.42	$ 0.54
Weighted-average common shares outstanding:
Basic (in shares)	187,188,118	185,969,475	187,123,581	185,214,021
Diluted (in shares)	192,045,426	191,769,107	191,998,390	191,373,606
Comprehensive income (loss):
Net income (loss)	$ 28,951	$ 18,570	$ 91,289	$ 106,188
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) during the period	255	(378)	(180)	(480)
Unrealized gains (losses) on derivative financial instruments	332	(348)	1,269	421
Total other comprehensive income (loss), net of tax	587	(726)	1,089	(59)
Comprehensive income (loss)	29,538	17,844	92,378	106,129
Less: Comprehensive (income) loss attributable to noncontrolling interest	(3,062)	(1,334)	(10,118)	(3,161)
Comprehensive income (loss) attributable to Envision Healthcare Holdings, Inc.	$ 26,476	$ 16,510	$ 82,260	$ 102,968

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net income (loss)	$ 91,289	$ 106,188
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense	187,435	135,716
(Gain) loss on disposal of property, plant and equipment	220	250
Equity-based compensation expense	9,290	4,786
Excess tax benefits from equity-based compensation	(1,324)	(34,051)
Equity in earnings of unconsolidated subsidiary	(1,758)	(202)
Dividends received	386	370
Deferred income taxes	8,598	3,503
Changes in operating assets/liabilities, net of acquisitions:
Trade and other accounts receivable, net	(42,014)	(83,065)
Parts and supplies inventory	(596)	(485)
Prepaids and other current assets	20,924	(3,696)
Accounts payable and accrued liabilities	454	66,296
Insurance reserves	(22,448)	(2,257)
Other assets and liabilities, net	1,977	1,592
Net cash provided by (used in) operating activities	252,433	194,945
Cash Flows from Investing Activities
Purchases of available-for-sale securities	(15,459)	(2,507)
Sales and maturities of available-for-sale securities	3,869	9,409
Purchases of property, plant and equipment	(125,738)	(65,687)
Proceeds from sale of property, plant and equipment	202	377
Acquisition of businesses, net of cash received	(180,867)	(568,570)
Net change in insurance collateral	33,859	(1,250)
Other investing activities	(3,033)	(1,226)
Net cash provided by (used in) investing activities	(287,167)	(629,454)
Cash Flows from Financing Activities
Borrowings under the ABL Facility	315,000	365,000
Repayments of the ABL Facility	(210,000)	(155,000)
Repayments of the Term Loan	(17,529)	(10,029)
Debt issuance costs	(709)	(27)
Proceeds from stock options exercised and issuance of shares under employee stock purchase plan and provider stock purchase plan	2,644	11,767
Excess tax benefits from equity-based compensation	1,324	34,051
Contributions from (distributions to) noncontrolling interest, net	(8,833)	100
Other financing activities	1,193	(358)
Net cash provided by (used in) financing activities	83,090	245,504
Change in cash and cash equivalents	48,356	(189,005)
Cash and cash equivalents, beginning of period	141,677	318,895
Cash and cash equivalents, end of period	$ 190,033	$ 129,890

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 190,033	$ 141,677
Insurance collateral	52,646	68,849
Trade and other accounts receivable, net	1,341,202	1,257,021
Parts and supplies inventory	38,739	34,023
Prepaids and other current assets	81,265	96,857
Total current assets	1,703,885	1,598,427
Non-current assets:
Property, plant and equipment, net	383,947	335,869
Intangible assets, net	1,062,400	1,051,631
Goodwill	3,386,263	3,271,933
Other long-term assets	119,313	95,712
Total assets	6,655,808	6,353,572
Current liabilities:
Accounts payable	65,686	68,985
Accrued liabilities	666,794	612,445
Current portion of long-term debt and capital lease obligations	24,904	24,550
Total current liabilities	757,384	705,980
Long-term debt and capital lease obligations	3,055,440	2,958,481
Deferred income taxes	388,661	369,110
Insurance reserves	255,674	252,650
Other long-term liabilities	66,946	65,910
Total liabilities	4,524,105	4,352,131
Commitments and contingencies
Equity:
Common stock ($0.01 par value; 2,000,000,000 shares authorized, 187,240,923 and 186,924,004 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively)	1,872	1,869
Preferred stock ($0.01 par value; 200,000,000 shares authorized, none issued and outstanding as of September 30, 2016 and December 31, 2015)
Additional paid-in capital	1,690,833	1,677,578
Retained earnings	369,912	288,741
Accumulated other comprehensive income (loss)	(560)	(1,649)
Total Envision Healthcare Holdings, Inc. equity	2,062,057	1,966,539
Noncontrolling interest	69,646	34,902
Total equity	2,131,703	2,001,441
Total liabilities and equity	$ 6,655,808	$ 6,353,572