Common use of Condensed Consolidated Statements of Operations Clause in Contracts

Condensed Consolidated Statements of Operations. For the Three Months and the Nine Months ended June 30, 1998 and 1999............................... 2 Condensed Consolidated Statements of Cash Flows-- For the Nine Months ended June 30, 1998 and 1999.................................................... 3 Notes to Condensed Consolidated Financial Statements.................................................. 4 Management's Discussion and Analysis of Financial Condition and Results of Operations................. 20 PART II--OTHER INFORMATION: Item 5.--Other Information............................................................................ 35 Item 6.--Exhibits and Reports on Form 8-K............................................................. 35 Signatures............................................................................................ 37 MAGELLAN HEALTH SERVICES, INC. QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 PART I--FINANCIAL INFORMATION‌ (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) SEPTEMBER 30, JUNE 30, 1998 1999 ASSETS Cash and cash equivalents............................................................ $ 92,050 $ 40,307 Accounts receivable, net............................................................. 174,846 156,349 Restricted cash and investments...................................................... 89,212 111,882 Refundable income taxes.............................................................. 4,939 -- Other current assets................................................................. 38,677 24,634 Total current assets............................................................... 399,724 333,172 Assets restricted for settlement of unpaid claims and other liabilities................ 37,910 28,751 Property and equipment, net of accumulated depreciation of $60,100 at September 30, 1998, and $68,043 at June 30, 1999................................................... 177,169 137,314 Deferred income taxes.................................................................. 97,386 85,767 Investments in unconsolidated subsidiaries............................................. 11,066 38,174 Other long-term assets................................................................. 35,415 21,172 Goodwill, net.......................................................................... 992,431 1,066,787 Other intangible assets, net........................................................... 165,189 152,336 $ 1,916,290 $1,863,473 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Long-term debt and capital lease obligations........................................... 1,202,613 1,102,184 Reserve for unpaid claims.............................................................. 30,280 21,366 Deferred credits and other long-term liabilities....................................... 14,011 31,435 Minority interest...................................................................... 26,985 1,955 Commitments and contingencies Stockholders' equity: Preferred stock, without par value Authorized--10,000 shares Issued and outstanding--none....................................................... -- -- Common stock, par value $0.25 per share Authorized--80,000 shares Issued and outstanding--33,898 shares at September 30, 1998 and 34,067 shares at June 30, 1999..................................................................... 8,476 8,516 Other stockholders' equity:

Appears in 1 contract

Samples: Quarterly Report

AutoNDA by SimpleDocs

Condensed Consolidated Statements of Operations. For the Three Months and the Nine Months ended June 30, 1998 1997 and 1999............................... 2 1998................................................................................... 4 Condensed Consolidated Statements of Cash Flows-- Flows--For the Nine Months ended June 30, 1998 1997 and 1999.................................................... 3 1998..... 5 Notes to Condensed Consolidated Financial Statements.................................................. 4 6 Management's Discussion and Analysis of Financial Condition and Results of Operations................. 20 23 PART II--OTHER INFORMATION: Item 5.--Other Information1.--Legal Proceedings............................................................................ 35 34 Item 6.--Exhibits and Reports on Form 8-K............................................................. 35 34 Signatures............................................................................................ 37 35 MAGELLAN HEALTH SERVICES, INC. QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 PART I--FINANCIAL INFORMATION‌ (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) SEPTEMBER 30, JUNE 30, 1997 1998 1999 ASSETS Cash and cash equivalents............................................................ $ 92,050 $ 40,307 Accounts receivable, net............................................................. 174,846 156,349 Restricted cash and investments...................................................... 89,212 111,882 Refundable income taxes.............................................................. 4,939 -- Other current assets................................................................. 38,677 24,634 Total current assets............................................................... 399,724 333,172 Assets restricted for settlement of unpaid claims and other liabilities................ 37,910 28,751 Current Assets: Property and equipment, net : Land............................................................................. 11,667 10,817 The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of accumulated depreciation of $60,100 at September these balance sheets. SEPTEMBER 30, 1998, and $68,043 at June JUNE 30, 1999................................................... 177,169 137,314 Deferred income taxes.................................................................. 97,386 85,767 Investments in unconsolidated subsidiaries............................................. 11,066 38,174 Other long-term assets................................................................. 35,415 21,172 Goodwill, net.......................................................................... 992,431 1,066,787 Other intangible assets, net........................................................... 165,189 152,336 $ 1,916,290 $1,863,473 1997 1998 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilitiesLiabilities: Long-term debt and capital lease obligations........................................... 1,202,613 1,102,184 ......................................... 391,693 1,189,131 Reserve for unpaid claims.............................................................. 30,280 21,366 ............................................................ 49,113 33,374 Deferred credits and other long-term liabilities....................................... 14,011 31,435 ..................................... 16,110 16,244 Minority interest...................................................................... 26,985 1,955 .................................................................... 61,078 32,268 Commitments and contingencies Stockholders' equityEquity: Preferred stockStock, without par value Authorized--10,000 shares Issued issued and outstanding--none....................................................... ........................... -- -- Common stockStock, par value $0.25 per share Authorized--80,000 shares Issued issued and outstanding--33,898 outstanding--33,439 shares at September 30, 1998 1997 and 34,067 33,686 shares at June 30, 1999..................................................................... 8,476 8,516 1998........................................ 8,361 8,423 Other stockholdersStockholders' equity:Equity Additional paid-in capital....................................................... 340,645 353,125 Accumulated deficit.............................................................. (129,955) (150,224) Warrants outstanding............................................................. 25,050 25,050 Common Stock in Treasury, 4,424 shares at September 30, 1997 and 2,137 shares at Cumulative foreign currency adjustments.......................................... (3,120) (3,166) The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these balance sheets. MAGELLAN HEALTH SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ------------------ ---------- 0000 0000 0000 -------- ---------- Net revenue..................................................................................... $324,921 $474,779 $1,021,662 -------- ---------- Costs and expenses: Salaries, cost of care and other operating expenses........................................... 263,915 409,225 830,248 Bad debt expense.............................................................................. 12,081 1,216 47,456 Depreciation and amortization................................................................. 12,044 17,724 38,231 Interest, net................................................................................. 12,602 24,409 39,324 Stock option expense (credit)................................................................. 1,781 12 3,214 Managed Care integration costs................................................................ -- 1,240 -- Equity in loss of CBHS........................................................................ 399 7,158 399 Loss on Crescent Transactions................................................................. 59,868 59,868 Unusual items................................................................................. (1,038) (3,049) 357 -------- ---------- 361,652 457,935 1,019,097 -------- ---------- Income (loss) before provision for income taxes, minority interest and extraordinary items...... (36,731) 16,844 2,565 Provision for (benefit from) income taxes....................................................... (14,693) 8,339 1,025 -------- ---------- Income (loss) before minority interest and extraordinary items.................................. (22,038) 8,505 1,540 Minority interest............................................................................... 2,403 1,095 6,948 -------- ---------- Income (loss) before extraordinary items........................................................ (24,441) 7,410 (5,408) Extraordinary items--losses on early extinguishments of debt (net of income tax benefit of $1,536 and $3,503 for the three months and nine months ended June 30, 1997, respectively, and $22,010 for the nine months ended June 30, 1998).............................................. (2,303) -- (5,253) -------- ---------- Net income (loss)............................................................................... $(26,744) $ 7,410 $ (10,661) -------- ---------- -------- ---------- Average number of common shares outstanding--basic.............................................. 28,830 31,523 28,715 -------- -------- ---------- ---------- Average number of common shares outstanding--diluted............................................ 28,830 32,131 28,715 -------- -------- ---------- ---------- Income (loss) per common share--basic: Income (loss) before extraordinary items...................................................... $ (0.85) $ 0.24 $ (0.19) -------- -------- ---------- ---------- Extraordinary losses on early extinguishments of debt......................................... $ (0.08) $ -- $ (0.18) -------- -------- ---------- ---------- Net income (loss)............................................................................. $ (0.93) $ 0.24 $ (0.37) -------- -------- ---------- ---------- Income (loss) per common share--diluted: Income (loss) before extraordinary items...................................................... $ (0.85) $ 0.23 $ (0.19) -------- -------- ---------- ---------- Extraordinary losses on early extinguishments of debt......................................... $ (0.08) $ -- $ (0.18) -------- -------- ---------- ---------- Net income (loss)............................................................................. $ (0.93) $ 0.23 $ (0.37) -------- -------- ---------- ---------- 1998 ---------- Net revenue..................................................................................... $1,063,099 ---------- Costs and expenses: Salaries, cost of care and other operating expenses 909,353 Bad debt expense.............................................................................. 2,972 Depreciation and amortization 37,649 Interest, net 49,336 Stock option expense (credit) (3,527) Managed Care integration costs 12,314 Equity in loss of CBHS 24,221 Loss on Crescent Transactions................................................................. -- Unusual items (3,000) ---------- 1,029,318 ---------- Income (loss) before provision for income taxes, minority interest and extraordinary items 33,781 Provision for (benefit from) income taxes 15,972 ---------- Income (loss) before minority interest and extraordinary items 17,809 Minority interest............................................................................... 5,063 ---------- Income (loss) before extraordinary items 12,746 Extraordinary items--losses on early extinguishments of debt (net of income tax benefit of $1,536 and $3,503 for the three months and nine months ended June 30, 1997, respectively, and $22,010 for the nine months ended June 30, 1998) (33,015) ---------- Net income (loss)............................................................................... $ (20,269) ---------- ---------- Average number of common shares outstanding--basic 30,505 ---------- ---------- Average number of common shares outstanding--diluted 31,099 ---------- ---------- Income (loss) per common share--basic: Income (loss) before extraordinary items...................................................... $ 0.42 ---------- Net income (loss)............................................................................. $ (0.66) ---------- ---------- Income (loss) per common share--diluted: Income (loss) before extraordinary items...................................................... $ 0.41 ---------- Net income (loss)............................................................................. $ (0.65) ---------- ---------- JUNE 30, 1997 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net loss............................................................................ $ (10,661) $ (20,269) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization............................................... 38,231 37,649 Equity in loss of CBHS...................................................... 399 24,221 Stock option expense (credit)............................................... 3,214 (3,527) Non-cash interest expense................................................... 1,297 1,984 Gain on sale of assets...................................................... (5,747) (3,000) Impairment of long-lived assets............................................. -- 2,160 Loss on Crescent Transactions............................................... 59,868 -- Extraordinary losses on early extinguishments of debt....................... 8,756 55,025 and acquisitions of businesses: Accounts receivable, net................................................ 18,521 (28,360) Other assets............................................................ 8,409 (7,992) Restricted cash and investments......................................... -- (8,268) Accounts payable and other accrued liabilities.......................... (67,540) (18,428) Reserve for unpaid claims............................................... (20,679) (16,083) Income taxes payable and deferred income taxes.......................... (17,985) (16,544) Other liabilities....................................................... (17,400) (7,239) Minority interest, net of dividends paid................................ 7,498 4,354 Other................................................................... (965) (1,084) Total adjustments................................................... 15,877 14,868 Net cash provided by (used in) operating activities............... 5,216 (5,401) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures................................................................ (28,113) (26,938) Acquisitions and investments in businesses, net of cash acquired.................... (28,840) (1,033,155) Proceeds from sale of property and equipment to Crescent and CBHS, net of transaction costs................................................................. 384,041 (6,070) Decrease in assets restricted for settlement of unpaid claims....................... 12,551 46,943 Proceeds from sale of assets........................................................ 15,463 18,088 Net cash provided by (used in) investing activities............... 355,102 (1,001,132) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of debt, net of issuance costs............................... 203,643 1,169,887 Payments on debt and capital lease obligations...................................... (389,406) (438,563) Proceeds from issuance of warrants.................................................. 25,000 -- Proceeds from exercise of stock options and warrants................................ 5,743 4,633 Purchases of treasury stock......................................................... -- (12,456) Net cash provided by (used in) financing activities............... (155,020) 723,501 Net increase (decrease) in cash and cash equivalents.................................. 205,298 (283,032) Cash and cash equivalents at beginning of period...................................... 120,945 372,878 Cash and cash equivalents at end of period............................................ $ 326,243 $ 89,846 The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements. MAGELLAN HEALTH SERVICES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1998 (UNAUDITED) NOTE A--BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. These financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended September 30, 1997, included in the Company's Annual Report on Form 10-K. NOTE B--NATURE OF BUSINESS The Company's 50% owned hospital business, Charter Behavioral Health Systems, LLC ("CBHS"), is seasonal in nature, with a reduced demand for certain services generally occurring in the first fiscal quarter around major holidays, such as Thanksgiving and Christmas, and during the summer months comprising the fourth fiscal quarter. The Company's businesses are also subject to general economic conditions and other factors. Accordingly, the results of operations for the interim periods are not necessarily indicative of the actual results expected for the year. NOTE C--SUPPLEMENTAL CASH FLOW INFORMATION Below is supplemental cash flow information related to the nine months ended June 30, 1997 and 1998: -------------------- 1997 1998

Appears in 1 contract

Samples: Quarterly Report

Condensed Consolidated Statements of Operations. For the Three Months ended December 31, 1997 and the Nine Months ended June 30, 1998 and 1999............................... 1998............................................... 2 Condensed Consolidated Statements of Cash Flows-- For the Nine Three Months ended June 30December 31, 1998 1997 and 1999.................................................... 1998............................................... 3 Notes to Condensed Consolidated Financial Statements.................................................. 4 Management's Discussion and Analysis of Financial Condition and Results of Operations................. 20 ................................................................. 17 PART II--OTHER INFORMATION: Item 5.--Other Information............................................................................ 35 Item 6.--Exhibits and Reports on Form 8-K............................................................. 35 29 Signatures............................................................................................ 37 30 MAGELLAN HEALTH SERVICES, INC. QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 PART I--FINANCIAL INFORMATION‌ (IN THOUSANDSMAGELLAN HEALTH SERVICES, EXCEPT PER SHARE AMOUNTS) SEPTEMBER 30, JUNE 30, 1998 1999 INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS Cash and cash equivalents............................................................ ......................................................... $ 92,050 $ 40,307 49,358 Accounts receivable, net............................................................. .......................................................... 174,846 156,349 172,990 Restricted cash and investments...................................................... ................................................... 89,212 111,882 Refundable income taxes.............................................................. 4,939 -- 132,099 Other current assets................................................................. .............................................................. 38,677 24,634 33,916 Total current assets............................................................... Current Assets.......................................................... 399,724 333,172 388,363 Assets restricted for settlement of unpaid claims and other liabilities................ ............. 37,910 28,751 33,978 Property and equipment, net of accumulated depreciation of $60,100 at September 30, 1998, 1998 and $68,043 60,231 at June 30December 31, 1999................................................... 1998............................................. 177,169 137,314 156,436 Deferred income taxes.................................................................. ............................................................... 97,386 85,767 94,069 Investments in unconsolidated subsidiaries............................................. .......................................... 11,066 38,174 31,814 Other long-term assets................................................................. .............................................................. 35,415 21,172 18,751 Goodwill, net.......................................................................... ....................................................................... 992,431 1,066,787 1,067,085 Other intangible assets, net........................................................... ........................................................ 165,189 152,336 160,447 $ 1,916,290 $1,863,473 1,950,943 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable.................................................................. $ 42,873 $ 33,593 Accrued liabilities: ............................................................... 193,530 242,199 Medical claims payable............................................................ 195,330 191,384 Current maturities of long-term debt and capital lease obligations................ 23,033 29,428 Total Current Liabilities..................................................... 454,766 497,285 Long-term debt and capital lease obligations........................................... ........................................ 1,202,613 1,102,184 1,156,020 Reserve for unpaid claims.............................................................. ........................................................... 30,280 21,366 27,149 Deferred credits and other long-term liabilities....................................... .................................... 14,011 31,435 74,633 Minority interest...................................................................... ................................................................... 26,985 1,955 4,683 Commitments and contingencies Contingencies Stockholders' equityEquity: Preferred stock, without par value Authorized--10,000 shares Issued and outstanding--none....................................................... -- -- Common stockStock, par value $0.25 per share Authorized--80,000 shares Issued and outstanding--33,898 shares at September 30, 1998 and 34,067 December 31, 1998.......................................................................... 8,476 8,476 Other Stockholders' Equity: Additional paid-in capital...................................................... 349,651 349,663 Warrants outstanding............................................................ 25,050 25,050 Common stock in treasury, 2,289 shares at June September 30, 1999..................................................................... 8,476 8,516 1998 and December 31, Total Stockholders' Equity.................................................... 187,635 191,173 $ 1,916,290 $1,950,943 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) FOR THE THREE MONTHS ENDED DECEMBER 31, -------------------- 1997 1998 Net revenue............................................................. $ 212,371 $ 463,143 Costs and expenses: --------- --------- Salaries, cost of care and other operating expenses................... 172,331 413,216 Equity in (earnings) losses of unconsolidated subsidiaries............ 12,122 (4,982) Depreciation and amortization......................................... 6,969 18,391 Interest, net......................................................... 7,401 24,109 Stock option expense (credit)......................................... (3,959) 12 Managed care integration costs........................................ -- 1,750 Unusual items......................................................... -- 22 Income before provision for income taxes and minority interest.......... 17,507 10,625 Provision for income taxes.............................................. 7,003 6,037 Income before minority interest......................................... 10,504 4,588 Minority interest....................................................... 2,876 407 Net income.............................................................. 7,628 4,181 Unrealized foreign currency adjustment, net of income tax (benefit) provision of $39 in 1997 and $(436) in 1998........................... 59 (655) Comprehensive income.................................................... $ 7,687 $ 3,526 --------- --------- Average number of common shares outstanding--basic...................... 28,969 31,613 --------- --------- Average number of common shares outstanding--diluted.................... 29,784 31,660 --------- --------- Net income per common share--basic...................................... $ 0.26 $ 0.13 --------- --------- Net income per common share--diluted.................................... $ 0.26 $ 0.13 --------- --------- FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net income................................................................................. $ 7,628 $ 4,181 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization.......................................................... 6,969 18,391 Equity in (earnings) losses of unconsolidated subsidiaries............................. 12,122 (4,982) Stock option expense (credit).......................................................... (3,959) 12 Non-cash interest expense.............................................................. 422 954 Gain on sale of assets................................................................. -- (1,062) Cash flows from changes in assets and liabilities, net of effects from sales and acquisitions of businesses: Accounts receivable, net............................................................. (16,304) (6,267) Restricted cash and investments...................................................... -- (42,887) Other stockholdersassets......................................................................... (10,633) 3,289 Accounts payable and other accrued liabilities....................................... (27,776) 34,142 Medical claims payable............................................................... 6,592 (3,946) Reserve for unpaid claims............................................................ (9,256) (3,131) Income taxes payable and deferred income taxes....................................... 2,056 9,363 Other liabilities.................................................................... (1,623) (223) Minority interest, net of dividends paid............................................. 3,199 924 Other................................................................................ (1,162) (1,099) Total adjustments.................................................................. (39,353) 3,478 Net cash provided by (used in) operating activities.............................. (31,725) 7,659 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures....................................................................... (4,578) (14,357) Acquisitions and investments in businesses, net of cash acquired and return of escrowed funds.................................................................................... (165,548) 6,444 Conversion of joint ventures from consolidation to equity method........................... -- (21,092) Distributions received from unconsolidated subsidiaries.................................... -- 9,303 Decrease in assets restricted for settlement of unpaid claims and other liabilities........ 14,364 5,808 Proceeds from sale of assets............................................................... -- 3,619 Cresent Transaction costs.................................................................. (4,253) (7) Net cash used in investing activities................................................ (160,015) (10,282) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of debt, net of issuance costs...................................... -- (69) Payments on debt and capital lease obligations............................................. (140) (40,000) Proceeds from exercise of stock options and warrants....................................... 1,917 -- Purchases of treasury stock................................................................ (12,456) -- Net cash used in financing activities................................................ (10,679) (40,069) Net decrease in cash and cash equivalents.................................................... (202,419) (42,692) Cash and cash equivalents at beginning of period............................................. 372,878 92,050 Cash and cash equivalents at end of period................................................... $ 170,459 $ 49,358 MAGELLAN HEALTH SERVICES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1998 (UNAUDITED) NOTE A--BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. These financial statements should be read in conjunction with the audited consolidated financial statements of Magellan Health Services, Inc. and Subsidiaries ("Magellan" or the "Company") for the fiscal year ended September 30, 1998, included in the Company's Annual Report on Form 10-K. Certain reclassifications have been made to fiscal 1998 amounts to conform to fiscal 1999 presentation. NOTE B--SUPPLEMENTAL CASH FLOW INFORMATION Below is supplemental cash flow information related to the three months ended December 31, 1997 and 1998 (in thousands): FOR THE THREE MONTHS ENDED DECEMBER 31, -------------------- 1997 --------- 1998 --------- Income taxes paid, net of refunds received $ 4,752 $ (3,570) Interest paid, net of amounts capitalized............... 21,550 12,601 NOTE C--LONG-TERM DEBT AND LEASES Information with regard to the Company's long-term debt and capital lease obligations at September 30, 1998 and December 31, 1998 is as follows (in thousands): SEPTEMBER 30, DECEMBER 31, 1998 1998 Credit Agreement: Revolving Facility due through 2004........................... $ 40,000 $ -- Term Loan Facility (7.3725% to 7.8725% at December 31, 1998) due through 2006............................................ 550,000 550,000 9.0% Senior Subordinated Notes due 2008....................... 625,000 625,000 6.07% to 11.5% Mortgage and other notes payable through 4.05% Capital lease obligations due through 2014.............. 6,448 6,438 1,225,646 1,185,448 Less amounts due within one year.......................... 23,033 29,428 $ 1,202,613 $1,156,020 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1998 NOTE D--ACCRUED LIABILITIES Accrued liabilities consist of the following (in thousands): SEPTEMBER 30, 1998 DECEMBER 31,1998 Salaries, wages and other benefits.............................. $ 23,893 $ 12,504 Interest........................................................ 9,271 23,200 CHAMPUS adjustments............................................. 25,484 29,330 Other........................................................... 134,882 177,165 $ 193,530 $ 242,199 NOTE E--INCOME PER COMMON SHARE The following table presents the components of average number of common shares outstanding-diluted (in thousands): THREE MONTHS ENDED DECEMBER 31, -------------------- 1997 1998 --------- --------- Average number of common shares outstanding--basic... 28,969 31,613 Common stock equivalents--stock options.............. 762 39 Common stock equivalents--warrants................... 53 8 Average number of common shares --------- --------- outstanding--diluted............................... 29,784 31,660 --------- --------- Options to purchase approximately 1,649,000 shares of common stock at $14.56 to $31.00 per share were outstanding during the quarter ended December 31, 1998, but were not included in the computation of diluted EPS because the options' equityexercise prices were greater than the average market price of the common shares. Approximately 1,315,000 of these options, which expire between fiscal 2001 and 2009, were outstanding at December 31, 1998. Warrants to purchase approximately 4,713,000 shares of common stock at $26.15 to $38.70 per share were outstanding during the quarter ended December 31, 1998, but were not included in the computation of diluted EPS because the warrants' exercise prices were greater than the average market price of the common shares. The warrants, which expire between fiscal 2000 and 2009, were outstanding at December 31, 1998. On November 17, 1998, the Company's Board of Directors approved the repricing of stock options outstanding under the Company's existing stock option plans which were held by current directors and full-time employees (the "Stock Option Repricing"). Each holder of 10,000 or more stock options that was NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1998 NOTE E--INCOME PER COMMON SHARE (CONTINUED) eligible to participate in the Stock Option Repricing was required to forfeit a percentage of outstanding stock options as follows:

Appears in 1 contract

Samples: Quarterly Report

Condensed Consolidated Statements of Operations. For the Three Months and the Nine Six Months ended June 30March 31, 1998 1997 and 1999............................... 2 1998................................................................................... 4 Condensed Consolidated Statements of Cash Flows-- Flows--For the Nine Six Months ended June 30March 31, 1998 1997 and 1999.................................................... 3 1998..... 5 Notes to Condensed Consolidated Financial Statements.................................................. 4 6 Management's Discussion and Analysis of Financial Condition and Results of Operations................. 20 PART II--OTHER INFORMATION: Item 5.--Other Information1.--Legal Proceedings............................................................................ 35 30 Item 4.--Submission of Matters to a Vote of Security Holders.......................................... 30 Item 6.--Exhibits and Reports on Form 8-K............................................................. 35 30 Signatures............................................................................................ 37 32 The undersigned Registrant hereby amends Note I--Contingencies of the Notes to Condensed Consolidated Financial Statements of its Report on Form 10-Q for the quarterly period ended March 31, 1998. MAGELLAN HEALTH SERVICES, INC. QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 PART I--FINANCIAL INFORMATION‌ (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) SEPTEMBER 30, JUNE 30MARCH 31, 1997 1998 1999 ASSETS Cash and cash equivalents............................................................ $ 92,050 $ 40,307 Accounts receivable, net............................................................. 174,846 156,349 Restricted cash and investments...................................................... 89,212 111,882 Refundable income taxes.............................................................. 4,939 -- Other current assets................................................................. 38,677 24,634 Total current assets............................................................... 399,724 333,172 Assets restricted for settlement of unpaid claims and other liabilities................ 37,910 28,751 Current Assets: Property and equipment, net : Land............................................................................. 11,667 11,477 The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of accumulated depreciation of $60,100 at September these balance sheets. SEPTEMBER 30, 1998MARCH 31, and $68,043 at June 30, 1999................................................... 177,169 137,314 Deferred income taxes.................................................................. 97,386 85,767 Investments in unconsolidated subsidiaries............................................. 11,066 38,174 Other long-term assets................................................................. 35,415 21,172 Goodwill, net.......................................................................... 992,431 1,066,787 Other intangible assets, net........................................................... 165,189 152,336 $ 1,916,290 $1,863,473 1997 1998 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilitiesLiabilities: Long-term debt and capital lease obligations........................................... 1,202,613 1,102,184 ......................................... 391,693 1,208,715 Reserve for unpaid claims.............................................................. 30,280 21,366 ............................................................ 49,113 36,642 Deferred credits and other long-term liabilities....................................... 14,011 31,435 ..................................... 16,110 19,710 Minority interest...................................................................... 26,985 1,955 .................................................................... 61,078 30,619 Commitments and contingencies Stockholders' equityEquity: Preferred stockStock, without par value Authorized--10,000 shares Issued and outstanding--none....................................................... ........................... -- -- Common stockStock, par value $0.25 per share Authorized--80,000 shares Issued and outstanding--33,898 outstanding--33,439 shares at September 30, 1998 1997 and 34,067 33,625 shares at June March 31, 1998....................................... 8,361 8,407 Other Stockholders' Equity Additional paid-in capital....................................................... 340,645 351,858 Accumulated deficit.............................................................. (129,955) (157,634) Warrants outstanding............................................................. 25,050 25,050 Common Stock in Treasury, 4,424 shares at September 30, 19991997 and 2,137 shares at Cumulative foreign currency adjustments.......................................... (3,120) (3,291) The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these balance sheets. MAGELLAN HEALTH SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS MARCH 31, MARCH 31, 1997 1998 1997 1998 Net revenue...................................................... $ 349,922 $ 372,223 $ 696,741 $ 588,320 Costs and expenses: Salaries, cost of care and other operating expenses............ 282,210 324,507 566,333 500,128 Bad debt expense............................................... 15,140 686 35,375 1,756 Depreciation and amortization.................................. 13,088 12,956 26,187 19,925 Interest, net.................................................. 13,153 17,526 26,722 24,927 Managed Care integration costs................................. -- 11,074 -- 11,074 Equity in loss of CBHS......................................... -- 5,575 -- 17,063 Unusual Items.................................................. 1,395 49 1,395 49 325,815 372,793 657,445 571,383 Income (loss) before provision for income taxes, minority interest and extraordinary items............................... 24,107 (570) 39,296 16,937 Provision for income taxes....................................... 9,643 630 15,718 7,633 Income (loss) before minority interest and extraordinary items... 14,464 (1,200) 23,578 9,304 Minority interest................................................ 2,572 1,092 4,545 3,968 Income (loss) before extraordinary items......................... Extraordinary items--losses on early extinguishments of debt (net of income tax benefit of $1,967 in 1997 and $22,010 in 1998)... 11,892 -- (2,292) (33,015) 19,033 (2,950) 5,336 (33,015) Net income (loss)................................................ $ 11,892 $ (35,307) $ 16,083 $ (27,679) Average number of common shares outstanding--basic............... 28,726 31,012 28,657 29,995 Average number of common shares outstanding--diluted............. 29,343 31,012 29,155 30,587 Income (loss) per common share--basic: Income (loss) before extraordinary items....................... $ 0.41 $ (0.07) $ 0.66 $ 0.18 Extraordinary losses on early extinguishments of debt.......... $ -- $ (1.06) $ (0.10) $ (1.10) Net income (loss).............................................. $ 0.41 $ (1.14) $ 0.56 $ (0.92) Income (loss) per common share--diluted: Income (loss) before extraordinary items....................... $ 0.41 $ (0.07) $ 0.65 $ 0.17 Extraordinary losses on early extinguishments of debt.......... $ -- $ (1.06) $ (0.10) $ (1.08) Net income (loss).............................................. $ 0.41 $ (1.14) $ 0.55 $ (0.90) FOR THE SIX MONTHS ENDED MARCH 31, 1997 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss)..................................................................... 8,476 8,516 $ 16,083 $ (27,679) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization................................................. 26,187 19,925 Equity in loss of CBHS........................................................ -- 17,063 Stock option expense (credit)................................................. 1,433 (3,539) Non-cash interest expense..................................................... 882 1,110 Loss (gain) on sale of assets................................................. (3,302) 49 Impairment of long-lived assets............................................... -- 2,160 Extraordinary losses on early extinguishments of debt......................... 4,917 55,025 Cash flows from changes in assets and liabilities, net of effects from sales and acquisitions of businesses: Accounts receivable, net.................................................. (2,474) (8,933) Other stockholders' equity:assets.............................................................. (4,214) (8,210) Accounts payable and other accrued liabilities............................ (30,981) (25,475) Reserve for unpaid claims................................................. (13,694) (12,815) Income taxes payable and deferred income taxes............................ 4,638 (23,275) Other liabilities......................................................... (15,154) (4,126) Minority interest, net of dividends paid.................................. 5,219 2,705 Other..................................................................... (1,063) (1,026) Total adjustments..................................................... (27,606) 10,638 Net cash used in operating activities............................... (11,523) (17,041) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures.................................................................. (14,373) (13,467) Acquisitions and investments in businesses, net of cash acquired...................... (12,962) (936,663) Decrease in assets restricted for settlement of unpaid claims......................... 8,626 18,007 Proceeds from sale of assets.......................................................... 10,386 5,983 Crescent Transaction costs............................................................ -- (5,865) Net cash used in investing activities............................... (8,323) (932,005) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of debt, net of issuance costs................................. 126,825 1,171,681 Payments on debt and capital lease obligations........................................ (117,521) (425,433) Proceeds from exercise of stock options and warrants.................................. 3,842 3,362 Purchases of treasury stock........................................................... -- (12,456) Net cash provided by financing activities........................... 13,146 737,154 Net decrease in cash and cash equivalents............................................... (6,700) (211,892) Cash and cash equivalents at beginning of period........................................ 120,945 372,878 Cash and cash equivalents at end of period.............................................. $ 114,245 $ 160,986 The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements. MAGELLAN HEALTH SERVICES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1998 (UNAUDITED) NOTE A--BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. These financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended September 30, 1997, included in the Company's Annual Report on Form 10-K. NOTE B--NATURE OF BUSINESS The Company's 50% owned hospital business, Charter Behavioral Health Systems, LLC ("CBHS"), is seasonal in nature, with a reduced demand for certain services generally occurring in the first fiscal quarter around major holidays, such as Thanksgiving and Christmas, and during the summer months comprising the fourth fiscal quarter. The Company's businesses are also subject to general economic conditions and other factors. Accordingly, the results of operations for the interim periods are not necessarily indicative of the actual results expected for the year. NOTE C--SUPPLEMENTAL CASH FLOW INFORMATION Below is supplemental cash flow information related to the six months ended March 31, 1997 and 1998: FOR THE SIX MONTHS ENDED MARCH 31, -------------------- 1997 1998 Income taxes paid, net of refunds received........................................ $ 9,064 $ 8,095 Interest paid, net of amounts capitalized......................................... 28,704 40,747 Non-cash transactions: Common Stock in Treasury issued in connection with the purchase of the remaining 39% interest in Green Spring Health Services, Inc............................. $ -- $ 63,496 Cash and cash equivalents at March 31, 1998 include approximately $57.6 million that is held for the payment of claims under the terms of certain behavioral managed care contracts and for regulatory purposes related to the payment of claims in certain jurisdictions. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 1998 NOTE D--LONG-TERM DEBT AND LEASES Information with regard to the Company's long-term debt and capital lease obligations at September 30, 1997 and March 31, 1998 is as follows (in thousands): SEPTEMBER 30, MARCH 31, 1997 1998

Appears in 1 contract

Samples: Form 10 Q

AutoNDA by SimpleDocs

Condensed Consolidated Statements of Operations. For the Three Months and the Nine Six Months ended June 30March 31, 1998 1997 and 1999............................... 2 1998................................................................................... 4 Condensed Consolidated Statements of Cash Flows-- Flows--For the Nine Six Months ended June 30March 31, 1998 1997 and 1999.................................................... 3 1998..... 5 Notes to Condensed Consolidated Financial Statements.................................................. 4 6 Management's Discussion and Analysis of Financial Condition and Results of Operations................. 20 PART II--OTHER INFORMATION: Item 5.--Other Information1.--Legal Proceedings............................................................................ 35 30 Item 4.--Submission of Matters to a Vote of Security Holders.......................................... 30 Item 6.--Exhibits and Reports on Form 8-K............................................................. 35 30 Signatures............................................................................................ 37 32 MAGELLAN HEALTH SERVICES, INC. QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 PART I--FINANCIAL INFORMATION‌ (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) SEPTEMBER 30, JUNE 30MARCH 31, 1997 1998 1999 ASSETS Cash and cash equivalents............................................................ $ 92,050 $ 40,307 Accounts receivable, net............................................................. 174,846 156,349 Restricted cash and investments...................................................... 89,212 111,882 Refundable income taxes.............................................................. 4,939 -- Other current assets................................................................. 38,677 24,634 Total current assets............................................................... 399,724 333,172 Assets restricted for settlement of unpaid claims and other liabilities................ 37,910 28,751 Current Assets: Property and equipment, net : Land............................................................................. 11,667 11,477 The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of accumulated depreciation of $60,100 at September these balance sheets. SEPTEMBER 30, 1998MARCH 31, and $68,043 at June 30, 1999................................................... 177,169 137,314 Deferred income taxes.................................................................. 97,386 85,767 Investments in unconsolidated subsidiaries............................................. 11,066 38,174 Other long-term assets................................................................. 35,415 21,172 Goodwill, net.......................................................................... 992,431 1,066,787 Other intangible assets, net........................................................... 165,189 152,336 $ 1,916,290 $1,863,473 1997 1998 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilitiesLiabilities: Long-term debt and capital lease obligations........................................... 1,202,613 1,102,184 ......................................... 391,693 1,208,715 Reserve for unpaid claims.............................................................. 30,280 21,366 ............................................................ 49,113 36,642 Deferred credits and other long-term liabilities....................................... 14,011 31,435 ..................................... 16,110 19,710 Minority interest...................................................................... 26,985 1,955 .................................................................... 61,078 30,619 Commitments and contingencies Stockholders' equityEquity: Preferred stockStock, without par value Authorized--10,000 shares Issued and outstanding--none....................................................... ........................... -- -- Common stockStock, par value $0.25 per share Authorized--80,000 shares Issued and outstanding--33,898 outstanding--33,439 shares at September 30, 1998 1997 and 34,067 33,625 shares at June March 31, 1998....................................... 8,361 8,407 Other Stockholders' Equity Additional paid-in capital....................................................... 340,645 351,858 Accumulated deficit.............................................................. (129,955) (157,634) Warrants outstanding............................................................. 25,050 25,050 Common Stock in Treasury, 4,424 shares at September 30, 19991997 and 2,137 shares at Cumulative foreign currency adjustments.......................................... (3,120) (3,291) The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these balance sheets. MAGELLAN HEALTH SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS MARCH 31, MARCH 31, 1997 1998 1997 1998 Net revenue...................................................... $ 349,922 $ 372,223 $ 696,741 $ 588,320 Costs and expenses: Salaries, cost of care and other operating expenses............ 282,210 324,507 566,333 500,128 Bad debt expense............................................... 15,140 686 35,375 1,756 Depreciation and amortization.................................. 13,088 12,956 26,187 19,925 Interest, net.................................................. 13,153 17,526 26,722 24,927 Managed Care integration costs................................. -- 11,074 -- 11,074 Equity in loss of CBHS......................................... -- 5,575 -- 17,063 Unusual Items.................................................. 1,395 49 1,395 49 325,815 372,793 657,445 571,383 Income (loss) before provision for income taxes, minority interest and extraordinary items............................... 24,107 (570) 39,296 16,937 Provision for income taxes....................................... 9,643 630 15,718 7,633 Income (loss) before minority interest and extraordinary items... 14,464 (1,200) 23,578 9,304 Minority interest................................................ 2,572 1,092 4,545 3,968 Income (loss) before extraordinary items......................... 11,892 (2,292) 19,033 5,336 Extraordinary items--losses on early extinguishments of debt (net Average number of common shares outstanding--basic............... 28,726 31,012 28,657 29,995 Average number of common shares outstanding--diluted............. 29,343 31,012 29,155 30,587 Income (loss) per common share--basic: Income (loss) before extraordinary items....................... $ 0.41 $ (0.07) $ 0.66 $ 0.18 Extraordinary losses on early extinguishments of debt.......... $ -- $ (1.06) $ (0.10) $ (1.10) Net income (loss).............................................. $ 0.41 $ (1.14) $ 0.56 $ (0.92) Income (loss) per common share--diluted: Income (loss) before extraordinary items....................... $ 0.41 $ (0.07) $ 0.65 $ 0.17 Extraordinary losses on early extinguishments of debt.......... $ -- $ (1.06) $ (0.10) $ (1.08) Net income (loss).............................................. $ 0.41 $ (1.14) $ 0.55 $ (0.90) FOR THE SIX MONTHS ENDED MARCH 31, 1997 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss)..................................................................... 8,476 8,516 $ 16,083 $ (27,679) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization................................................. 26,187 19,925 Equity in loss of CBHS........................................................ -- 17,063 Stock option expense (credit)................................................. 1,433 (3,539) Non-cash interest expense..................................................... 882 1,110 Loss (gain) on sale of assets................................................. (3,302) 49 Impairment of long-lived assets............................................... -- 2,160 Extraordinary losses on early extinguishments of debt......................... 4,917 55,025 Cash flows from changes in assets and liabilities, net of effects from sales and acquisitions of businesses: Accounts receivable, net.................................................. (2,474) (8,933) Other stockholders' equity:assets.............................................................. (4,214) (8,210) Accounts payable and other accrued liabilities............................ (30,981) (25,475) Reserve for unpaid claims................................................. (13,694) (12,815) Income taxes payable and deferred income taxes............................ 4,638 (23,275) Other liabilities......................................................... (15,154) (4,126) Minority interest, net of dividends paid.................................. 5,219 2,705 Other..................................................................... (1,063) (1,026) Total adjustments..................................................... (27,606) 10,638 Net cash used in operating activities............................... (11,523) (17,041) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures.................................................................. (14,373) (13,467) Acquisitions and investments in businesses, net of cash acquired...................... (12,962) (936,663) Decrease in assets restricted for settlement of unpaid claims......................... 8,626 18,007 Proceeds from sale of assets.......................................................... 10,386 5,983 Crescent Transaction costs............................................................ -- (5,865) Net cash used in investing activities............................... (8,323) (932,005) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of debt, net of issuance costs................................. 126,825 1,171,681 Payments on debt and capital lease obligations........................................ (117,521) (425,433) Proceeds from exercise of stock options and warrants.................................. 3,842 3,362 Purchases of treasury stock........................................................... -- (12,456) Net cash provided by financing activities........................... 13,146 737,154 Net decrease in cash and cash equivalents............................................... (6,700) (211,892) Cash and cash equivalents at beginning of period........................................ 120,945 372,878 Cash and cash equivalents at end of period.............................................. $ 114,245 $ 160,986 The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements. MAGELLAN HEALTH SERVICES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1998 (UNAUDITED) NOTE A--BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. These financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended September 30, 1997, included in the Company's Annual Report on Form 10-K. NOTE B--NATURE OF BUSINESS The Company's 50% owned hospital business, Charter Behavioral Health Systems, LLC ("CBHS"), is seasonal in nature, with a reduced demand for certain services generally occurring in the first fiscal quarter around major holidays, such as Thanksgiving and Christmas, and during the summer months comprising the fourth fiscal quarter. The Company's businesses are also subject to general economic conditions and other factors. Accordingly, the results of operations for the interim periods are not necessarily indicative of the actual results expected for the year. NOTE C--SUPPLEMENTAL CASH FLOW INFORMATION Below is supplemental cash flow information related to the six months ended March 31, 1997 and 1998: FOR THE SIX MONTHS ENDED MARCH 31, -------------------- 1997 1998 Income taxes paid, net of refunds received........................................ $ 9,064 $ 8,095 Interest paid, net of amounts capitalized......................................... 28,704 40,747 Non-cash transactions: Common Stock in Treasury issued in connection with the purchase of the remaining 39% interest in Green Spring Health Services, Inc............................. $ -- $ 63,496 Cash and cash equivalents at March 31, 1998 include approximately $57.6 million that is held for the payment of claims under the terms of certain behavioral managed care contracts and for regulatory purposes related to the payment of claims in certain jurisdictions. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 1998 (UNAUDITED) NOTE D--LONG-TERM DEBT AND LEASES Information with regard to the Company's long-term debt and capital lease obligations at September 30, 1997 and March 31, 1998 is as follows (in thousands): SEPTEMBER 30, MARCH 31, 1997 1998

Appears in 1 contract

Samples: Quarterly Report

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!