Adeptus Health Inc.

CIK:0001602367|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue
Patient service revenue	$ 70,174	$ 101,254	$ 305,057	$ 301,519
Provision for bad debt	(8,358)	(17,907)	(52,084)	(50,365)
Net patient service revenue	61,816	83,347	252,973	251,154
Management and contract services revenue	23,552	4,865	45,331	8,098
Total net operating revenue	85,368	88,212	298,304	259,252
Equity in earnings of unconsolidated joint ventures	(8,457)	4,543	(3,521)	7,470
Operating expenses:
Salaries, wages and benefits	64,580	55,420	193,525	155,424
General and administrative	15,119	13,866	44,398	35,701
Other operating expenses	8,992	13,152	36,098	36,998
Depreciation and amortization	2,694	4,259	10,477	13,538
Total operating expenses	91,385	86,697	284,498	241,661
(Loss) income from operations	(14,474)	6,058	10,285	25,061
Other (expense) income:
Gain on contribution to joint venture			185,336	24,250
Interest expense	(2,024)	(3,753)	(5,672)	(10,925)
Total other (expense) income	(2,024)	(3,753)	179,664	13,325
(Loss) income before (benefit) provision for income taxes	(16,498)	2,305	189,949	38,386
Provision for income taxes	(4,765)	811	45,623	7,617
Net (loss) income	(11,733)	1,494	144,326	30,769
Less: Net (loss) income attributable to non-controlling interest	(3,639)	820	60,940	18,867
Net (loss) income attributable to Adeptus Health Inc.	(8,094)	674	83,386	11,902
Common Class A
Other (expense) income:
Net (loss) income attributable to Adeptus Health Inc.	$ (8,094)	$ 674	$ 83,386	$ 11,902
Net (loss) income per share of Class A common stock:
Basic (in dollars per share)	$ (0.49)	$ 0.05	$ 5.47	$ 1.05
Diluted (in dollars per share)	$ (0.49)	$ 0.05	$ 5.47	$ 1.05
Weighted average shares of Class A common stock:
Basic (in shares)	16,371,261	13,236,064	15,252,983	11,377,557
Diluted (in shares)	16,371,261	13,236,064	15,252,983	11,377,557

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Cash flows from operating activities:
Net (loss) income	$ (11,733)	$ 1,494	$ 144,326	$ 30,769
Adjustments to reconcile net income (loss) to net cash used in operating activities:
(Gain) loss from the disposal or impairment of assets			(11)	68
Depreciation and amortization	2,694	4,259	10,477	13,538
Deferred tax benefit			45,064	6,328
Amortization of deferred loan costs	200	300	580	719
Provision for bad debts	8,358	17,907	52,084	50,365
Gain on contribution to unconsolidated joint venture			(185,336)	(24,250)
Equity in (loss) earnings of unconsolidated joint venture	8,457	(4,543)	3,521	(7,470)	$ (8,927)
Stock-based compensation			3,711	1,946
Changes in operating assets and liabilities:
Restricted cash				(4,371)
Accounts receivable			(65,824)	(61,753)
Other receivables and current assets			(47,660)	(4,362)
Medical supplies inventory			(2,020)	(852)
Other long-term assets			302	(591)
Accounts payable and accrued expenses			4,313	(3,215)
Accrued compensation			(2,293)	6,548
Deferred rent			1,483	1,703
Net cash (used in) provided by operating activities			(37,283)	5,120
Cash flows from investing activities:
Deposits			(97)	921
Investments in unconsolidated joint ventures			(1,541)
Proceeds from sale of property and equipment			110	1,527
Capital expenditures			(4,912)	(4,916)
Net cash used in investing activities			(6,440)	(2,468)
Cash flows from financing activities:
Capital contributions			107,389	360,420
Purchase of limited liability units from LLC Unit holders			(107,389)	(360,420)
Proceeds from long-term borrowings			63,000	54,000
Payment of deferred loan costs			(78)	(1,572)
Payments on borrowings			(25,222)	(6,964)
Payment of capital lease obligations			(42)	(60)
Tax distribution to LLC Unit holders			(2,862)	(3,543)
Restricted stock forfeited on vesting to satisfy withholding requirements			(1,033)	(205)
Net cash provided by financing activities			33,763	41,656
Net (decrease) increase in cash and cash equivalents			(9,960)	44,308
Cash, beginning of period			16,037	2,002	2,002
Cash, end of period	$ 6,077	$ 46,310	$ 6,077	$ 46,310	$ 16,037

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 6,077	$ 16,037
Accounts receivable, less allowance for doubtful accounts of $25,941 and $28,818, respectively	79,694	65,954
Other receivables and current assets	78,927	31,532
Medical supplies inventory	4,394	5,167
Total current assets	169,092	118,690
Property and equipment, net	33,725	70,187
Investment in unconsolidated joint venture	265,124	43,104
Deposits	1,260	1,163
Deferred tax asset	259,184	206,265
Intangibles, net	16,900	18,235
Goodwill	51,390	61,009
Other long-term assets	2,004	2,950
Total assets	798,679	521,603
Current liabilities
Accounts payable and accrued expenses	31,278	27,521
Accrued compensation	19,835	23,197
Current maturities of long-term debt	7,055	7,585
Current maturities of capital lease obligations	71	102
Deferred rent	830	858
Total current liabilities	59,069	59,263
Long-term debt, less current maturities	153,325	113,563
Payable to related parties pursuant to tax receivable agreement	237,914	191,302
Capital lease obligations, less current maturities	307	3,954
Deferred rent	2,867	3,837
Total liabilities	453,482	371,919
Commitments and contingencies
Shareholders' Equity
Preferred stock
Additional paid-in capital	173,062	85,457
Retained earnings	86,847	6,323
Total shareholders' equity	260,120	91,988
Non-controlling interest	85,077	57,696
Total equity	345,197	149,684
Total liabilities and shareholders' equity	798,679	521,603
Common Class A
Shareholders' Equity
Common Stock	164	143
Common Class B
Shareholders' Equity
Common Stock	$ 47	$ 65