QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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(State or other jurisdiction of Incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
☒ |
Accelerated filer |
☐ | ||||
Non-accelerated filer |
☐ |
Smaller reporting company |
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Emerging growth company |
Page |
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PART I - FINANCIAL INFORMATION |
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Item 1. |
Financial Statements |
3 |
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3 |
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4 |
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5 |
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6 |
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7 |
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Item 2. |
15 |
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Item 3. |
23 |
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Item 4. |
23 |
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Item 1. |
24 |
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Item 1A. |
24 |
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Item 2. |
24 |
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Item 6. |
25 |
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26 |
June 30, 2019 |
December 31, 2018 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | |
$ | |
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Restricted cash |
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Short-term investments |
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Accounts receivable, net |
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Prepaid expenses |
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Other current assets |
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Assets held for sale |
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Total current assets |
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Investments |
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Property and equipment, net |
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Goodwill |
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Intangible assets, net |
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Operating lease right-of-use assets |
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Other assets |
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Assets held for sale |
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Total assets |
$ | |
$ | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ | |
$ | |
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Current portion of finance lease liabilities |
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Current portion of operating lease liabilities |
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Income taxes payable |
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Liabilities held for sale |
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Total current liabilities |
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Line of credit |
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Long-term debt and finance lease liabilities, net |
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Long-term operating lease liabilities |
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Long-term professional liabilities |
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Deferred income taxes |
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Other liabilities |
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Liabilities held for sale |
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Total liabilities |
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Commitments and contingencies |
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Shareholders’ equity: |
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Preferred stock; $ par value; |
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Common stock; $ par value; |
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Additional paid-in capital |
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Accumulated other comprehensive income |
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Retained earnings |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity |
$ | |
$ | |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2019 |
2018 |
2019 |
2018 |
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Net revenue |
$ | |
$ | |
$ | |
$ | |
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Operating expenses: |
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Practice salaries and benefits |
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Practice supplies and other operating expenses |
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General and administrative expenses |
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Depreciation and amortization |
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Transformational and restructuring related expenses |
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Total operating expenses |
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Income from operations |
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Investment and other income |
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Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Equity in earnings of unconsolidated affiliates |
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Total non-operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Income from continuing operations before income taxes |
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Income tax provision |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Income from continuing operations |
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(Loss) income from discontinued operations, net of tax |
( |
) | |
( |
) | |
||||||||||
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Net (loss) income |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
||||||
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Per common and common equivalent share data: |
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Income from continuing operations: |
||||||||||||||||
Basic |
$ | |
$ | |
$ | |
$ | |
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Diluted |
$ | |
$ | |
$ | |
$ | |
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(Loss) income from discontinued operations: |
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Basic |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
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Diluted |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
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Net (loss) income: |
||||||||||||||||
Basic |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
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Diluted |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
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Weighted average common shares: |
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Basic |
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Diluted |
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Common Stock |
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Additional Paid-in Capital |
Accumulated Other Comprehensive (Loss) Income |
Retained Earnings |
Total Equity |
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Number of Shares |
Amount |
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2019 |
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Balance at January 1, 2019 |
|
$ | |
$ | |
$ | — |
$ | |
$ | |
||||||||||||||
Net loss |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||
Unrealized holding loss on investments, net of tax |
— |
— |
— |
( |
) | — |
( |
) | |||||||||||||||||
Common stock issued under employee stock option, employee stock purchase plan and stock purchase plan |
|
|
|
— |
— |
|
|||||||||||||||||||
Issuance of restricted stock |
|
|
( |
) | — |
— |
— |
||||||||||||||||||
Forfeitures of restricted stock |
( |
) | — |
— |
— |
— |
— |
||||||||||||||||||
Stock swaps |
( |
) | — |
( |
) | — |
— |
( |
) | ||||||||||||||||
Stock-based compensation expense |
— |
— |
|
— |
— |
|
|||||||||||||||||||
Repurchased common stock |
( |
) | ( |
) | ( |
) | — |
( |
) | ( |
) | ||||||||||||||
Balance at March 31, 2019 |
|
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
|||||||||||||
Net loss |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||
Unrealized holding gain on investments, net of tax |
— |
— |
— |
|
— |
|
|||||||||||||||||||
Common stock issued under employee stock option, employee stock purchase plan and stock purchase plan |
|
|
|
— |
— |
|
|||||||||||||||||||
Issuance of restricted stock |
|
|
( |
) | — |
— |
— |
||||||||||||||||||
Forfeitures of restricted stock |
( |
) | ( |
) | |
— |
— |
— |
|||||||||||||||||
Stock swaps |
— |
|
— |
— |
— |
— |
|||||||||||||||||||
Stock-based compensation expense |
— |
— |
|
— |
— |
|
|||||||||||||||||||
Repurchased common stock |
( |
) | ( |
) | ( |
) | — |
( |
) | ( |
) | ||||||||||||||
Balance at June 30, 2019 |
|
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||
2018 |
|||||||||||||||||||||||||
Balance at January 1, 2018 |
|
$ | |
$ | |
$ | — |
$ | |
$ | |
||||||||||||||
Net income |
— |
— |
— |
— |
|
|
|||||||||||||||||||
Common stock issued under employee stock option, employee stock purchase plan and stock purchase plan |
|
|
|
— |
— |
|
|||||||||||||||||||
Issuance of restricted stock |
|
|
( |
) | — |
— |
— |
||||||||||||||||||
Forfeitures of restricted stock |
( |
) | — |
— |
— |
— |
— |
||||||||||||||||||
Stock swaps |
( |
) | — |
( |
) | — |
— |
( |
) | ||||||||||||||||
Stock-based compensation expense |
— |
— |
|
— |
— |
|
|||||||||||||||||||
Balance at March 31, 2018 |
|
$ | |
$ | |
$ | — |
$ | |
$ | |
||||||||||||||
Net income |
— |
— |
— |
— |
|
|
|||||||||||||||||||
Common stock issued under employee stock option, employee stock purchase plan and stock purchase plan |
|
|
|
— |
— |
|
|||||||||||||||||||
Issuance of restricted stock |
|
— |
— |
— |
— |
— |
|||||||||||||||||||
Forfeitures of restricted stock |
( |
) | — |
— |
— |
— |
— |
||||||||||||||||||
Stock swaps |
( |
) | — |
( |
) | — |
— |
( |
) | ||||||||||||||||
Stock-based compensation expense |
— |
— |
|
— |
— |
|
|||||||||||||||||||
Repurchased common stock |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) | |
|
— |
|
|
|
( |
) | |
|
( |
) | |
Balance at June 30, 2018 |
|
$ | |
$ | |
$ | — |
$ | |
$ | |
||||||||||||||
Six Months Ended June 30, |
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2019 |
2018 |
|||||||
Cash flows from operating activities: |
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Net (loss) income |
$ | ( |
) | $ | |
|||
Loss (income) from discontinued operations |
|
( |
) | |||||
Adjustments to reconcile net income to net cash from operating activities: |
||||||||
Depreciation and amortization |
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|
||||||
Amortization of premiums, discounts and issuance costs |
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|
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Stock-based compensation expense |
|
|
||||||
Deferred income taxes |
( |
) | ( |
) | ||||
Other |
|
( |
) | |||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
|
( |
) | |||||
Prepaid expenses and other current assets |
|
( |
) | |||||
Other long-term assets |
|
( |
) | |||||
Accounts payable and accrued expenses |
( |
) | ( |
) | ||||
Income taxes payable |
( |
) | ( |
) | ||||
Payments of contingent consideration liabilities |
( |
) | ( |
) | ||||
Long-term professional liabilities |
( |
) | ( |
) | ||||
Other liabilities |
( |
) | ( |
) | ||||
Net cash provided by operating activities – continuing operations |
|
|
||||||
Net cash provided by operating activities - discontinued operations |
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|
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|
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Net cash provided by operating activities |
|
|
||||||
Cash flows from investing activities: |
||||||||
Acquisition payments, net of cash acquired |
( |
) | ( |
) | ||||
Purchases of investments |
|
( |
) | |||||
Proceeds from maturities or sales of investments |
|
|
||||||
Purchases of property and equipment |
( |
) | ( |
) | ||||
Proceeds from sale of controlling interest in assets |
|
|
||||||
Net cash used in investing activities – continuing operations |
( |
) | ( |
) | ||||
Net cash used in investing activities - discontinued operations |
( |
) | ( |
) | ||||
|
||||||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities: |
||||||||
Borrowings on credit agreement |
|
|
||||||
Payments on credit agreement |
( |
) | ( |
) | ||||
Proceeds from issuance of senior notes |
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|
||||||
Payments for financing costs |
( |
) | |
|||||
Payments of contingent consideration liabilities |
( |
) | ( |
) | ||||
Payments on finance lease obligations |
( |
) | ( |
) | ||||
Proceeds from issuance of common stock |
|
|
||||||
Repurchases of common stock |
( |
) | ( |
) | ||||
Net cash used in financing activities – continuing operations |
( |
) | ( |
) | ||||
Net cash used in financing activities - discontinued operations |
|
( |
) | |||||
|
||||||||
Net cash used in financing activities |
( |
) | ( |
) | ||||
Net decrease in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash, cash equivalents and restricted cash at beginning of period |
|
|
||||||
Less cash and cash equivalents of discontinued operations at end of period |
( |
) | ( |
) | ||||
Cash, cash equivalents and restricted cash of continuing operations at end of period |
$ | |
$ | |
||||
1. |
Basis of Presentation and New Accounting Pronouncements: |
2. |
Cash Equivalents and Investments: |
June 30, 2019 |
December 31, 2018 |
|||||||||||||||
Short-Term |
Long-Term |
Short-Term |
Long-Term |
|||||||||||||
Municipal debt securities |
$ | |
$ | — |
$ | |
$ | |
||||||||
Federal home loan securities |
|
— |
|
|
||||||||||||
Certificates of deposit |
|
— |
|
|
||||||||||||
$ | |
$ | — |
$ | |
$ | |
|||||||||
3. |
Fair Value Measurements: |
Fair Value |
||||||||||||
Fair Value Category |
June 30, 2019 |
December 31, 2018 |
||||||||||
Assets: |
||||||||||||
Money market funds |
Level 1 |
$ | |
$ | |
|||||||
Short-term investments |
Level 2 |
|
— |
(1) | ||||||||
Company-owned life insurance |
Level 2 |
|
|
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Liabilities: |
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Contingent consideration |
Level 3 |
|
|
(1) |
Investments were measured at carrying value as of December 31, 2018. See table below. |
June 30, 2019 |
December 31, 2018 |
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Carrying Amount |
Fair Value |
Carrying Amount |
Fair Value |
|||||||||||||
Assets: |
||||||||||||||||
Short-term investments |
$ | — |
(2) |
$ | — |
(2) |
|
|
||||||||
Long-term investments |
— |
(2) |
— |
(2) |
|
|
||||||||||
Liabilities: |
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2023 Notes |
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|
|
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2027 Notes |
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|
|
(2) |
Investments were measured at fair value as of June 30, 2019. See table above. |
4. |
Accounts Receivable and Net Revenue: |
June 30, 2019 |
December 31, 2018 |
|||||||
Gross accounts receivable |
$ | |
$ | |
||||
Allowance for contractual adjustments and uncollectibles |
( |
) | ( |
) | ||||
$ | |
$ | |
|||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Net patient service revenue |
$ | |
$ | |
$ | |
$ | |
||||||||
Hospital contract administrative fees |
|
|
|
|
||||||||||||
Other revenue |
|
|
|
|
||||||||||||
$ | 868,309 |
$ | 864,987 |
$ | 1,719,492 |
$ | 1,717,615 |
|||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Contracted managed care |
|
% | |
% | |
% | |
% | ||||||||
Government |
|
|
|
|
||||||||||||
Other third-parties |
|
|
|
|
||||||||||||
Private-pay patients |
|
|
|
|
||||||||||||
|
% | |
% | |
% | |
% | |||||||||
5. |
Business Acquisitions: |
6. |
Assets Held for Sale and Discontinued Operations: |
June 30, 2019 |
December 31, 2018 |
|||||||
Assets |
||||||||
Cash and cash equivalents |
$ | |
$ | |
||||
Accounts receivable, net |
|
|
||||||
Prepaid expenses and other assets |
|
|
||||||
Property and equipment, net |
|
|
||||||
Deferred income taxes |
|
|
|
|
|
|
|
|
Operating lease right-of-use asset |
|
— |
||||||
Goodwill |
— |
|
||||||
Intangible assets, net |
|
|
||||||
$ | |
$ | |
|||||
Liabilities |
||||||||
Accounts payable, accrued expenses and other liabilities |
$ | |
$ | |
||||
Lease liabilities |
|
— |
||||||
Deferred income taxes |
— |
|
||||||
$ | |
$ | |
|||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Net revenue |
$ | |
$ | |
$ | |
$ | |
||||||||
Operating expenses: |
||||||||||||||||
Cost of service salaries and benefits |
|
|
|
|
||||||||||||
Cost of service supplies and other operating expenses |
|
|
|
|
||||||||||||
General and administrative expenses |
|
|
|
|
||||||||||||
Depreciation and amortization |
|
|
|
|
||||||||||||
Transaction costs |
|
|
|
|
||||||||||||
Loss on classification as held for sale |
|
|
|
|
||||||||||||
Total operating expenses |
|
|
|
|
||||||||||||
|
||||||||||||||||
(Loss) income from operations |
( |
) | |
( |
) | |
||||||||||
Non-operating expenses, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
(Loss) income before income taxes |
( |
) | |
( |
) | |
||||||||||
Income tax benefit (provision) |
|
( |
) | |
( |
) | ||||||||||
Net (loss) income |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
||||||
7. |
Accounts Payable and Accrued Expenses: |
June 30, 2019 |
December 31, 2018 |
|||||||
Accounts payable |
$ | |
$ | |
||||
Accrued salaries and bonuses |
|
|
||||||
Accrued payroll taxes and benefits |
|
|
||||||
Accrued professional liabilities |
|
|
||||||
Accrued contingent consideration |
|
|
||||||
Accrued interest |
|
|
||||||
Other accrued expenses |
|
|
||||||
$ | |
$ | |
|||||
8. |
Leases: |
June 30, 2019 |
||||
Assets: |
||||
Operating lease right-of-use assets |
$ | |
||
Liabilities: |
||||
Current portion of operating lease liabilities |
|
|||
Long-term portion of operating lease liabilities |
|
|||
Other Information: |
||||
Weighted-average remaining lease term |
|
|||
Weighted average discount rate |
|
% |
Three Months Ended June 30, 2019 |
Six Months Ended June 30, 2019 |
|||||||
Operating lease costs |
$ | |
$ | |
||||
Variable lease costs |
|
|
||||||
Other operating lease costs |
|
|
||||||
Total operating lease costs |
$ | |
$ | |
||||
June 30, 2019 |
||||
Operating cash flows for operating leases |
$ | |
June 30, 2019 |
||||
2019 (excluding the six months ended June 30, 2019) |
$ | |
||
2020 |
|
|||
2021 |
|
|||
2022 |
|
|||
2023 |
|
|||
Thereafter |
|
|||
Total minimum lease payments |
|
|||
Less: Amount of payments representing interest |
( |
) | ||
Present value of future minimum lease payments |
|
|||
Less: Current obligations |
( |
) | ||
Long-term portion of operating leases |
$ | |
||
9. |
Common and Common Equivalent Shares: |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Weighted average number of common shares outstanding |
|
|
|
|
||||||||||||
Weighted average number of dilutive common share equivalents |
|
|
|
|
||||||||||||
Weighted average number of common and common equivalent shares outstanding |
|
|
|
|
||||||||||||
Antidilutive securities not included in the diluted net income per common share calculation |
|
|
|
|
||||||||||||
10. |
Stock Incentive Plans and Stock Purchase Plans: |
11. |
Common Stock Repurchase Programs: |
12. |
Commitments and Contingencies: |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Income from continuing operations |
$ | 35,516 |
$ | 74,775 |
$ | 77,169 |
$ | 134,781 |
||||||||
Interest expense |
31,080 |
21,618 |
61,803 |
41,553 |
||||||||||||
Income tax provision |
17,116 |
28,482 |
26,078 |
51,202 |
||||||||||||
Depreciation and amortization |
19,809 |
20,280 |
39,842 |
40,195 |
||||||||||||
Transformational and restructuring related expenses |
27,482 |
— |
31,026 |
— |
||||||||||||
Adjusted EBITDA from continuing operations |
$ | 131,003 |
$ | 145,155 |
$ | 235,918 |
$ | 267,731 |
||||||||
Three Months Ended June 30, |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
Weighted average diluted shares outstanding |
83,689 |
93,529 |
||||||||||||||
Income from continuing operations and diluted income from continuing operations per share |
$ | 35,516 |
$ | 0.42 |
$ | 74,775 |
$ | 0.80 |
||||||||
Adjustments (1) : |
||||||||||||||||
Amortization (net of tax of $3,434 and $3,621) |
9,052 |
0.11 |
9,546 |
0.10 |
||||||||||||
Stock-based compensation (net of tax of $2,739 and $2,840) |
7,222 |
0.09 |
7,487 |
0.08 |
||||||||||||
Transformational and restructuring related expenses (net of tax of $7,558) |
19,924 |
0.24 |
— |
— |
||||||||||||
Net impact from discrete tax events |
2,400 |
0.03 |
— |
— |
||||||||||||
Adjusted income and diluted EPS from continuing operations |
$ | 74,114 |
$ | 0.89 |
$ | 91,808 |
$ | 0.98 |
||||||||
(1) |
Tax rate of 27.5% was used to calculate the tax effects of the adjustments for the three months ended June 30, 2019 and 2018, respectively. The tax rate used for the three months ended June 30, 2019 excludes the impact of discrete tax events. |
Six Months Ended June 30, |
||||||||||||||||
2019 |
2018 |
|||||||||||||||
Weighted average diluted shares outstanding |
85,087 |
93,516 |
||||||||||||||
Income from continuing operations and diluted income from continuing operations per share |
$ | 77,169 |
$ | 0.91 |
$ | 134,781 |
$ | 1.44 |
||||||||
Adjustments (1) : |
||||||||||||||||
Amortization (net of tax of $6,883 and $7,183) |
18,376 |
0.22 |
18,938 |
0.20 |
||||||||||||
Stock-based compensation (net of tax of $5,709 and $5,503) |
15,241 |
0.18 |
14,509 |
0.16 |
||||||||||||
Transformational and restructuring related expenses (net of tax of $8,455) |
22,571 |
0.26 |
— |
— |
||||||||||||
Net impact from discrete tax events |
(2,391 |
) | (0.03 |
) | — |
— |
||||||||||
Adjusted income and diluted EPS from continuing operations |
$ | 130,966 |
$ | 1.54 |
$ | 168,228 |
$ | 1.80 |
||||||||
(1) |
Tax rates of 27.3% and 27.5% were used to calculate the tax effects of the adjustments for the six months ended June 30, 2019 and 2018, respectively. The tax rate used for the six months ended June 30, 2019 excludes the impact of discrete tax events. |
Six Months Ended June 30, |
||||||||
2019 |
2018 |
|||||||
Operating activities |
$ | 54,922 |
$ | 15,230 |
||||
Investing activities |
(19,750 |
) | (30,996 |
) | ||||
Financing activities |
(40,421 |
) | (4,761 |
) |
Period |
Total Number of Shares Repurchased (a) |
Average Price Paid per Share |
Total Number of Shares Purchased as part of the Repurchase Program |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Repurchase Programs (a) |
||||||||||||
April 1 – April 30, 2019 |
817,950 |
$ | 26.21 |
817,950 |
(a |
) | ||||||||||
May 1 – May 31, 2019 |
1,585,527 |
26.03 |
1,585,527 |
(a |
) | |||||||||||
June 1 – June 30, 2019 |
104,830 |
(b) | 24.87 |
60,495 |
(a |
) | ||||||||||
Total |
2,508,307 |
$ | 26.04 |
2,463,972 |
(a |
) |
(a) | We have two active repurchase programs. Our July 2013 program allows us to repurchase shares of our common stock up to an amount sufficient to offset the dilutive impact from the issuance of shares under our equity compensation programs, which is estimated to be approximately 1.3 million shares for 2019. Our August 2018 repurchase program allowed us to repurchase up to an additional $500.0 million of shares of our common stock, of which we repurchased $392.8 million as of June 30, 2019, inclusive of the shares indicated in the table above. |
(b) | Includes 63,666 shares withheld to satisfy minimum statutory withholding obligations of $1.7 million in connection with the vesting of restricted stock. |
Exhibit No. |
Description | |||
10.1 |
||||
31.1+ |
||||
31.2+ |
||||
32.1* |
||||
101.1+ |
Interactive Data File | |||
101.INS+ |
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH+ |
XBRL Schema Document. | |||
101.CAL+ |
XBRL Calculation Linkbase Document. | |||
101.DEF+ |
XBRL Definition Linkbase Document. | |||
101.LAB+ |
XBRL Label Linkbase Document. | |||
101.PRE+ |
XBRL Presentation Linkbase Document. |
+ | Filed herewith. |
* | Furnished herewith. |
MEDNAX, INC. | ||||||
Date: August 1, 2019 |
By: |
/s/ Roger J. Medel, M.D. | ||||
Roger J. Medel, M.D. | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: August 1, 2019 |
By: |
/s/ Stephen D. Farber | ||||
Stephen D. Farber | ||||||
Chief Financial Officer | ||||||
(Principal Financial Officer) | ||||||
Date: August 1, 2019 |
By: |
/s/ John C. Pepia | ||||
John C. Pepia | ||||||
Chief Accounting Officer | ||||||
(Principal Accounting Officer) |
Exhibit 31.1
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Roger J. Medel, M.D., certify that:
1. | I have reviewed this quarterly report on Form 10-Q of MEDNAX, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 1, 2019
By: | /s/ Roger J. Medel, M.D. | |
Roger J. Medel, M.D. | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Stephen D. Farber, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of MEDNAX, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 1, 2019
By: | /s/ Stephen D. Farber | |
Stephen D. Farber | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Exhibit 32.1
Certification Pursuant to 18 U.S.C Section 1350
(Adopted by Section 906 of the Sarbanes-Oxley Act of 2002)
In connection with the Quarterly Report of MEDNAX, Inc. on Form 10-Q for the quarter ended June 30, 2019 (the Report), each of the undersigned hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that (i) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MEDNAX, Inc.
A signed original of this written statement required by Section 906 has been provided to MEDNAX, Inc. and will be retained by MEDNAX, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
August 1, 2019
By: | /s/ Roger J. Medel, M.D. | |
Roger J. Medel, M.D. | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
By: | /s/ Stephen D. Farber | |
Stephen D. Farber | ||
Chief Financial Officer | ||
(Principal Financial Officer) |