EX-99.1 2 a58415exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
SOUTHERN DISTRICT OF NEW YORK
     
In re:
  Chapter 11
 
    
INSIGHT HEALTH SERVICES HOLDINGS CORP., et al.,1
  Case No: 10-16564 (AJG)
 
    
Debtors
  Jointly Administered
MONTHLY OPERATING REPORT FOR THE PERIOD FROM
DECEMBER 10, 2010 TO DECEMBER 31, 2010
     
DEBTORS’ ADDRESS:
  26250 Enterprise Court, Suite 100
 
  Lake Forest, California 92630
 
    
DEBTORS’ ATTORNEYS:
  James H.M. Sprayregen, P.C.
 
  Edward O. Sassower
 
  KIRKLAND & ELLIS LLP
 
  601 Lexington Avenue
 
  New York, New York 10022
 
       - and -
 
  Ryan Blaine Bennett
 
  Paul Wierbicki
 
  KIRKLAND & ELLIS LLP
 
  300 North LaSalle Street
 
  Chicago, Illinois 60654
 
    
REPORT PREPARER:
  INSIGHT HEALTH SERVICES HOLDINGS CORP., et al.,1
The undersigned, having reviewed the attached report and being familiar with the Debtors’ financial affairs, verifies under penalty of perjury, that the information contained therein is complete, accurate and truthful to the best of my knowledge.
         
Lake Forest, California
  /s/ Keith S. Kelson    
 
       
Dated: January 21, 2011
  Keith S. Kelson    
    Executive Vice President & Chief Financial Officer
    InSight Health Services Holdings Corp.
 
1   The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, include: InSight Health Services Holdings Corp. (0028); InSight Health Services Corp. (2770); Comprehensive Medical Imaging Centers, Inc. (6946); Comprehensive Medical Imaging, Inc. (2473); InSight Health Corp. (8857); Maxum Health Services Corp. (5957); North Carolina Mobile Imaging I LLC (9930); North Carolina Mobile Imaging II LLC (0165); North Carolina Mobile Imaging III LLC (0251); North Carolina Mobile Imaging IV LLC (0342); North Carolina Mobile Imaging V LLC (0431); North Carolina Mobile Imaging VI LLC (0532); North Carolina Mobile Imaging VII LLC (0607); Open MRI, Inc. (1529); Orange County Regional PET Center — Irvine, LLC (0190); Parkway Imaging Center, LLC (2858); and Signal Medical Services, Inc. (2413). The location of the Debtors’ corporate headquarters and the Debtors’ service address is: 26250 Enterprise Court, Suite 100, Lake Forest, California 92630.

 

 

UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG) 
 
           
 
  Debtors   Reporting Period:   December 31, 2010
 
           
 
            
 
      Federal Tax I.D. #   04-3570028 
 
           
CORPORATE MONTHLY OPERATING REPORT
File with the Court and submit a copy to the United States Trustee within 20 days after the end of the month and submit a copy of the report to any official committee appointed in the case.
             
        Document   Explanation
REQUIRED DOCUMENTS   Form No.   Attached   Attached
Schedule of Cash Receipts
   MOR-1A   X    
Schedule of Cash Disbursements
   MOR-1B   X    
Bank Account Information
   MOR-1C   X    
Copies of bank statements
       X    
Cash disbursements journals
           X
Statement of Operations
   MOR-2A   X    
Statement of Operations detail — Reorganization Items
   MOR-2B   X    
Balance Sheet
   MOR-3   X    
Status of Post-petition Taxes
   MOR-4   X    
Copies of IRS Form 6123 or payment receipt
           X
Copies of tax returns filed during reporting period
           X
Summary of Unpaid Post-petition Debts
   MOR-4   X    
Listing of Aged Accounts Payable
           X
Accounts Receivable Reconciliation and Aging
   MOR-5   X    
Payments to Insiders and Professional
   MOR-6   X    
Debtor Questionnaire
   MOR-7   X    
FORM MOR
PAGE 1 OF 1

 

 

             
In re
  Insight Health Services Holdings Corp., et al.
 
Debtor 		  Case No. (Jointly Administrated)
Reporting Period: 		  10-16564 (AJG)
December 31, 2010
 
           
CORPORATE MONTHLY OPERATING REPORT
GENERAL:
The report includes activity as of and during the reporting period from December 10, 2010 through December 31, 2010, of the following Debtors and related case numbers:
         
Debtor   Case No.
InSight Health Services Holdings Corp.
   10-16564 (AJG)
InSight Health Services Corp.
   10-16565 (AJG)
Comprehensive Medical Imaging Centers, Inc.
   10-16566 (AJG)
Comprehensive Medical Imaging, Inc.
   10-16567 (AJG)
InSight Health Corp.
   10-16568 (AJG)
Maxum Health Services Corp.
   10-16569 (AJG)
North Carolina Mobile Imaging I LLC
   10-16570 (AJG)
North Carolina Mobile Imaging II LLC
   10-16571 (AJG)
North Carolina Mobile Imaging III LLC
   10-16572 (AJG)
North Carolina Mobile Imaging IV LLC
   10-16573 (AJG)
North Carolina Mobile Imaging V LLC
   10-16574 (AJG)
North Carolina Mobile Imaging VI LLC
   10-16575 (AJG)
North Carolina Mobile Imaging VII LLC
   10-16576 (AJG)
Open MRI, Inc.
   10-16577 (AJG)
Orange County Regional PET Center — Irvine, LLC
   10-16578 (AJG)
Parkway Imaging Center, LLC
   10-16579 (AJG)
Signal Medical Services, Inc.
   10-16580 (AJG)
General Notes:
The financial statements and supplemental information contained herein are preliminary, unaudited and may not comply in all material respects with accounting principles generally accepted in the United States (“GAAP”). In addition, the financial statements and supplemental information contained herein represent condensed consolidated information.
The unaudited financial statements have been derived from the books and records of Insight Health Services Holdings Corp. (“IHSHC”) and its affiliated debtors (collectively, the “Debtors”). This information, however, has not been subject to certain procedures that would typically be applied to financial information in accordance with GAAP, and upon application of such procedures (e.g., tests for asset impairment), the Debtors believe that the financial information could be subject to changes, and these changes could be material. The information furnished in this report includes normal recurring adjustments but does not include all adjustments that would typically be made for financial information in accordance with GAAP.
The results of operations contained herein are not necessarily indicative of results which may be expected for any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial positions of the Debtors in the future.
Notes to MOR-1A:
Cash is received as described in the Debtors’ Motion for Entry of Interim and Final Orders (A) Authorizing the Debtors to (I) Continue Using the Cash Management System, (II) Maintain Existing Bank Accounts and Business Forms and (III) Maintain Existing Investment Practices, and (B) Authorizing the Debtors to Continue Intercompany Arrangements and Granting Postpetition Intercompany Claims Administrative Expense Priority (the “Cash Management Motion”) [Docket No. 7] which received final court approval on January 4, 2011 [Docket No. 97] (the “Cash Management Order”) and is consistent with the Debtors’ cash management practices. Cash receipts included in this schedule exclude transfers among the Debtor entities.
Notes to MOR-1B:
Cash disbursements are centralized as described in the Cash Management Motion and are consistent with the Debtors’ cash management practices. Cash disbursements included in this schedule exclude transfers among the Debtor entities.
FORM Notes to MOR
2/2008
PAGE 1 OF 3

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG) 
 
           
 
  Debtor   Reporting Period:   December 31, 2010
 
           
Notes to MOR-2B:
Interest earned on cash accumulated during the chapter 11 cases, which would not have been earned but for the bankruptcy proceedings, is reported as a reorganization item.
IHSHC’s non-Debtor subsidiaries are included as non-consolidated subsidiaries in the financial statements contained herein. Accordingly, their net income is reflected as “Equity in earnings” in the statement of operations.
Notes to MOR-3:
Intercompany transactions with the Debtors’ non-Debtor subsidiaries are included in the financial statements contained herein and are reflected as “Receivables from Non-Debtor entities” in the balance sheet. These amounts include intercompany accounts receivable/accounts payable, intercompany loans and intercompany interest receivable/payable.
Goodwill for the Debtor entities is not readily determinable. Accordingly, none of IHSHC’s consolidated goodwill is allocated to the Debtor entities.
IHSHC’s non-Debtor subsidiaries are included as non-consolidated subsidiaries in the financial statements contained herein. Accordingly, their net assets are reflected as “Investments in Joint Ventures” in the balance sheet.
Certain amounts included in prepetiton “Other accrued expenses” (as of December 10, 2010) reflect unprocessed accounts payable obligations that are reflected in the “Accounts payable” line items as December 31, 2010.
Notes to MOR-4:
The Debtors have paid and are paying all undisputed post-petition taxes and obligations as they come due.
Notes to MOR-6:
The Debtors have not included any ordinary course transfers or balances between affiliates in this schedule. In the ordinary course of business, the Debtors are obligated to withhold amounts from the paychecks of various regular employees in connection with garnishment orders or other state law withholding orders. The Debtors believe that these amounts do not constitute property of the estate and, accordingly, are not responsive to this question. Moreover, out of concerns for the confidentiality of the Debtors’ employees, the Debtors have not listed any such garnishments in response to this question.
There were no payments to professionals during this reporting period.
Notes to MOR-7:
The Debtors have made payments of prepetition liabilities in accordance with orders of the Bankruptcy Court specifically authorizing such payments (e.g., taxes, customer programs, insurance, wages and benefits programs).
The Debtors have paid and are paying all undisputed postpetition taxes and obligations as they come due.
Although the Debtors have not received notices of cancellation or renewal of insurance coverage, such notices are issued in the ordinary course of business. The Debtors continue to renew workers compensation, general liability and other necessary coverages in accordance with the Final Order Authorizing, but Not Directing Debtors to Continue Prepetition Insurance Coverage; Maintain Existing Financing of Insurance Premiums and Enter into New Postpetition Policies and Financing Agreements [Docket No. 100]. The Debtors believe that any ordinary course renewal of such coverage does not constitute an expiration or cancellation thereof.
The Debtors have made payments of prepetition payroll taxes in accordance with the Final Order Authorizing, but Not Directing, Debtors to (A) Pay Certain Prepetition Compensation and Reimbursable Employee Expenses, (B) Pay and Honor Employee Medical and Other Benefits, and (C) Continue Employee Wages and benefits Programs [Docket No. 101] specifically authorizing such payments. The Debtors believe that these amounts do not constitute property of the estate.
FORM Notes to MOR
2/2008
PAGE 2 OF 3

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG) 
 
           
 
  Debtor   Reporting Period:   December 31, 2010
 
           
Notes to MOR-7 (continued):
Certain post-petition receivables remain due from related parties on account of, and including but not limited to, intercompany transactions, and in accordance with the Cash Management Order authorizing such practices.
On December 14, 2010, the Debtors entered into a credit and guarantee agreement by and among IHSHC, as borrower, and the other guarantors named therein, Bank of America, N.A., as administrative agent, and each of the lenders party thereto (the “DIP Agreement”). The DIP Agreement provides for new money debtor-in-possession financing comprised of a term loan in the aggregate amount of $15.0 million (the “DIP Facility”). On January 4, 2011, the Bankruptcy Court entered the Final Order (I) Authorizing the Debtors to Obtain Financing, Grant Security Interests and Accord Priority Status and Modifying Automatic Stay, and Authorizing the Use of Cash Collateral [Docket No. 105] approving the DIP Agreement. The closing of the DIP Facility occurred on December 14, 2010, and as of December 31, 2010, the Debtors have access to $15.0 million in debtor-in-possession financing.
The Debtors believe that all undisputed post-petition accounts payable have been and are being paid as they become due.
FORM Notes to MOR
2/2008
PAGE 3 OF 3

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG) 
 
           
 
  Debtor   Reporting Period:   December 31, 2010
 
           
SCHEDULE OF CASH RECEIPTS
(amounts in thousands)
                 
Debtor   Case No.     Amount  
InSight Health Services Holdings Corp.
   10-16564 (AJG)   $ —  
InSight Health Services Corp.
   10-16565 (AJG)     —  
InSight Health Corp.
   10-16568 (AJG)     12,881,972  
Comprehensive Medical Imaging Centers, Inc.
   10-16566 (AJG)     —  
Comprehensive Medical Imaging, Inc.
   10-16567 (AJG)     —  
Maxum Health Services Corp.
   10-16569 (AJG)     923,343  
North Carolina Mobile Imaging I LLC
   10-16570 (AJG)     —  
North Carolina Mobile Imaging II LLC
   10-16571 (AJG)     —  
North Carolina Mobile Imaging III LLC
   10-16572 (AJG)     —  
North Carolina Mobile Imaging IV LLC
   10-16573 (AJG)     —  
North Carolina Mobile Imaging V LLC
   10-16574 (AJG)     —  
North Carolina Mobile Imaging VI LLC
   10-16575 (AJG)     —  
North Carolina Mobile Imaging VII LLC
   10-16576 (AJG)     —  
Open MRI, Inc.
   10-16577 (AJG)     37,009  
Parkway Imaging Center, LLC
   10-16579 (AJG)     73,961  
Signal Medical Services, Inc.
   10-16580 (AJG)     —  
 
              
 
   TOTAL
   $ 13,916,284.95  
 
              
See Notes to MOR.
FORM MOR-1A
PAGE 1 OF 1

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG) 
 
           
 
  Debtor   Reporting Period:   December 31, 2010
 
           
SCHEDULE OF CASH DISBURSEMENTS
                 
Debtor   Case No.     Amount  
InSight Health Services Holdings Corp.
   10-16564 (AJG)   $ —  
InSight Health Services Corp.
   10-16565 (AJG)     —  
Comprehensive Medical Imaging Centers, Inc.
   10-16566 (AJG)     —  
Comprehensive Medical Imaging, Inc.
   10-16567 (AJG)     —  
InSight Health Corp.
   10-16568 (AJG)     9,082,179.04  
Maxum Health Services Corp.
   10-16569 (AJG)     532,294.34  
North Carolina Mobile Imaging I LLC
   10-16570 (AJG)     —  
North Carolina Mobile Imaging II LLC
   10-16571 (AJG)     —  
North Carolina Mobile Imaging III LLC
   10-16572 (AJG)     —  
North Carolina Mobile Imaging IV LLC
   10-16573 (AJG)     —  
North Carolina Mobile Imaging V LLC
   10-16574 (AJG)     —  
North Carolina Mobile Imaging VI LLC
   10-16575 (AJG)     —  
North Carolina Mobile Imaging VII LLC
   10-16576 (AJG)     —  
Open MRI, Inc.
   10-16577 (AJG)     93,450.49  
Orange County Regional PET Center — Irvine, LLC
   10-16578 (AJG)     —  
Parkway Imaging Center, LLC
   10-16579 (AJG)     132,834.28  
Signal Medical Services, Inc.
   10-16580 (AJG)     66,934.68  
 
              
 
   TOTAL
   $ 9,907,692.83  
 
              
See Notes to MOR.
FORM MOR-1B
PAGE 1 OF 1

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG) 
 
           
 
  Debtor   Reporting Period:   December 31, 2010
 
           
BANK ACCOUNT INFORMATION
                                 
Legal Entity   Description   Case No.   Bank   Account No. (last 4)   Account Type   Account Type   Bank Balance  
InSight Health Services Corp.
       10-16565 (AJG)   Bank of America   2168   Payroll   Disbursement     —  
 
        
InSight Health Corp.
   AhwatukeeMcDowell Mtn   10-16568 (AJG)   Bank of America   3784   Business Checking   Deposit     —  
InSight Health Corp.
   Arizona/Genesis   10-16568 (AJG)   Bank of America   7171   Lockbox   Depository Plus     —  
InSight Health Corp.
   Arlington   10-16568 (AJG)   Bank of America   7198   Business Checking   Depository Plus     —  
InSight Health Corp.
   ArrowHead   10-16568 (AJG)   Bank of America   3145   Business Checking   Depository Plus     —  
InSight Health Corp.
   Biltmore   10-16568 (AJG)   Bank of America   3924   Business Checking   Depository Plus     —  
InSight Health Corp.
   Broad Street   10-16568 (AJG)   Bank of America   1432   Business Checking   Depository Plus     —  
InSight Health Corp.
   Broad Street — JP Morgan Chase   10-16568 (AJG)   J.P. Morgan Chase   1627   Business Checking   Deposit     6,478  
InSight Health Corp.
   Camelback   10-16568 (AJG)   Bank of America   6941   Business Checking   Deposit     —  
InSight Health Corp.
   Del Sol   10-16568 (AJG)   Bank of America   3188   Business Checking   Depository Plus     —  
InSight Health Corp.
   East Mesa   10-16568 (AJG)   Bank of America   3929   Business Checking   Depository Plus     —  
InSight Health Corp.
   El Paso   10-16568 (AJG)   Bank of America   4013   Business Checking   Depository Plus     —  
InSight Health Corp.
   Fairfax   10-16568 (AJG)   Bank of America   4037   Business Checking   Depository Plus     —  
InSight Health Corp.
   Fountains   10-16568 (AJG)   Bank of America   3164   Business Checking   Depository Plus     —  
InSight Health Corp.
   Gateway   10-16568 (AJG)   Bank of America   3981   Business Checking   Depository Plus     —  
InSight Health Corp.
   Good Year   10-16568 (AJG)   Bank of America   3126   Business Checking   Depository Plus     —  
InSight Health Corp.
   Harbor-UCLA   10-16568 (AJG)   Bank of America   7087   Business Checking   Depository Plus     —  
InSight Health Corp.
   Los Gatos   10-16568 (AJG)   Bank of America   5244   Business Checking   Depository Plus     —  
InSight Health Corp.
   Mobile (Wholesale)   10-16568 (AJG)   Bank of America   7862   Lockbox   Lockbox     550,735  
InSight Health Corp.
   Mountain Diagnostics   10-16568 (AJG)   Bank of America   7170   Business Checking   Depository Plus     —  
InSight Health Corp.
   Mtn View   10-16568 (AJG)   Bank of America   3948   Business Checking   Depository Plus     —  
InSight Health Corp.
   Murfreesboro   10-16568 (AJG)   Bank of America   7169   Business Checking   Depository Plus     —  
InSight Health Corp.
   Murchison Park W El Pao   10-16568 (AJG)   Bank of America   3169   Business Checking   Depository Plus     —  
InSight Health Corp.
   Northern Cal Lockbox   10-16568 (AJG)   Bank of America   3863   Lockbox   Depository Plus     —  
InSight Health Corp.
   Olive View   10-16568 (AJG)   Bank of America   7088   Business Checking   Deposit     —  
InSight Health Corp.
   Orange County PET   10-16568 (AJG)   closed   0450   Lockbox   CLOSED     —  
InSight Health Corp.
   Patriot N El Paso   10-16568 (AJG)   Bank of America   3183   Business Checking   Depository Plus     —  
InSight Health Corp.
   Pleasanton   10-16568 (AJG)   Bank of America   7073   Business Checking   Depository Plus     —  
InSight Health Corp.
   Rancho   10-16568 (AJG)   Bank of America   7092   Business Checking   Depository Plus     —  
InSight Health Corp.
   Redwood   10-16568 (AJG)   Bank of America   7094   Business Checking   Depository Plus     —  
InSight Health Corp.
   San Francisco   10-16568 (AJG)   Bank of America   3882   Business Checking   Depository Plus     —  
InSight Health Corp.
   Sun View   10-16568 (AJG)   Bank of America   3206   Business Checking   Depository Plus     —  
InSight Health Corp.
   Sun View X Ray   10-16568 (AJG)   Bank of America   3201   Business Checking   Depository Plus     —  
InSight Health Corp.
   Thunderbird   10-16568 (AJG)   Bank of America   3962   Business Checking   Depository Plus     —  
InSight Health Corp.
   Virginia Lockbox   10-16568 (AJG)   Bank of America   4032   Lockbox   Depository Plus     —  
InSight Health Corp.
   Western LockBox   10-16568 (AJG)   Bank of America   3198   Lockbox   Lockbox     —  
InSight Health Corp.
   West Valley   10-16568 (AJG)   Bank of America   3140   Business Checking   Depository Plus     —  
InSight Health Corp.
   Woodbridge   10-16568 (AJG)   Bank of America   4051   Business Checking   Depository Plus     —  
InSight Health Corp.
   Wilkes-Barre   10-16568 (AJG)   Bank of America   1379   Lockbox   Lockbox     —  
InSight Health Corp.
   IHC — Utilities Escrow   10-16568 (AJG)   Bank of America   3550   Money Market         210,000  
InSight Health Corp.
   Corporate — Bond Collateral   10-16568 (AJG)   Bank of America   5489   Business Checking   Disbursement     3,312,023  
InSight Health Corp.
   Corporate — Concentration   10-16568 (AJG)   Bank of America   6521   Business Checking   Concentration     1,934,605  
InSight Health Corp.
   Controlled Disbursement (AP-New)   10-16568 (AJG)   Bank of America   5578   Accounts Payable   Disbursement     —  
InSight Health Corp.
   Controlled Disbursement (Refunds)   10-16568 (AJG)   Bank of America   1949   Accounts Payable   Disbursement     —  
InSight Health Corp.
   IHC — Flexible Benefits Plan — HSA   10-16568 (AJG)   Bank of America   0154   Business Checking   Disbursement     1,246  
InSight Health Corp.
   IHC — Flexible Benefits Plan2 — FSA   10-16568 (AJG)   Bank of America   7813   Business Checking   Disbursement     99,645  
InSight Health Corp.
   LC Collateral   10-16568 (AJG)   Bank of America   1602   Business Checking         —  
 
        
Maxum Health Services Corp.
   Dallas Region Lockbox   10-16569 (AJG)   Bank of America   5315   Lockbox   C-Lockbox     —  
Maxum Health Services Corp.
   Eighth Ave PET_CT   10-16569 (AJG)   Bank of America   6436   Business Checking   Depository Plus     —  
 
        
Open MRI, Inc.
   Hayward   10-16577 (AJG)   Bank of America   7081   Business Checking   Depository Plus     —  
 
        
Parkway Imaging Center, LLC
       10-16579 (AJG)   Bank of America   7364   Business Checking   Depository Plus     —  
 
        
 
                              
TOTAL
                             6,114,732  
 
                              
See Notes to MOR.
FORM MOR-1C
PAGE 1 OF 1

 

 

             
In re:
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated):   10-16564 (AJG) 
 
           
 
  Debtor   Reporting Period:   December 31, 2010
 
           
STATEMENT OF OPERATIONS
December 11, 2010 — December 31, 2010
                 
    Current   Post-petition
    Reporting   Cumulative
    Period   To Date
     
Revenues
     8,886,758       8,886,758  
 
                
Costs and expenses:
                
Costs of services:
                
Salary and benefits
     4,270,229       4,270,229  
Severance
     23,935       23,935  
Bonus accrued but not paid
     163,921       163,921  
Recruiting and relocation
     2,794       2,794  
Travel and entertainment
     196,261       196,261  
Business meals & meetings
     9,729       9,729  
Equipment maintenance
     20,767       20,767  
Contractual maintenance
     836,530       836,530  
Vehicle operations-fleet
     167,892       167,892  
Vehicle operations-trailer
     175,498       175,498  
Occupancy
     577,884       577,884  
Office supplies
     52,146       52,146  
Communications
     239,777       239,777  
Consulting
     67,052       67,052  
Service supplies
     389,246       389,246  
Insurance
     139,239       139,239  
Taxes, licenses and fees
     91,947       91,947  
Accounting and legal
     125,739       125,739  
Transaction cost
     6,585       6,585  
Marketing
     51,020       51,020  
Sales
     54,980       54,980  
Bad debt
     187,214       187,214  
Reading fees
     83,439       83,439  
Billing fees
     162,592       162,592  
Gain on sale
     (220,197 )     (220,197 )
Hardware maintenance
     52,270       52,270  
Software maintenance
     137,975       137,975  
Other
     193,071       193,071  
     
Total costs of services
     8,259,535       8,259,535  
 
                
Operating income
     627,223       627,223  
Equity in earnings
     210,807       210,807  
     
EBITDAL
     838,030       838,030  
 
                
Equipment lease
     700,479       700,479  
     
EBITDA
     137,551       137,551  
 
                
Depreciation
     1,176,476       1,176,476  
Amortization
     114,973       114,973  
     
Profit (loss) before taxes
     (1,153,898 )     (1,153,898 )
 
                
Provision for reorganization
     1,114,329       1,114,329  
Income taxes
     25,314       25,314  
     
Net income (loss)
     (2,293,541 )     (2,293,541 )
     
See Notes to MOR.
FORM MOR-2A
PAGE 1 OF 1

 

 

             
In re:
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated):   10-16564 (AJG) 
 
           
 
  Debtor   Reporting Period:   December 31, 2010
 
           
STATEMENT OF OPERATIONS DETAIL — REORGANIZATION ITEMS
                 
    Current Reporting   Cumulative Filing
REORGANIZATION ITEMS   Period   To Date
 
Professional Fees
   $ 777,863     $ 777,863  
U. S. Trustee Quarterly Fees
     24,375       24,375  
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
     (2 )     (2 )
DIP Facility Closing ($300,000) and Monthly Fees
     311,992       311,992  
Other Reorganization Expenses (attach detailed schedule)
     100       100  
     
Total Reorganization Expenses
     1,114,329       1,114,329  
Reorganization Items — Interest Earned on Accumulated Cash from Chapter 11:
Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.
FORM MOR-2B
PAGE 1 OF 1

 

 

                     
In re:
   Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated):   10-16564 (AJG)
 
   Debtor   Reporting Period:   December 31, 2010
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from post-petition obligations.
                         
    BOOK VALUE CURRENT   BOOK VALUE AT END OF   BOOK VALUE ON
    REPORTING MONTH   PRIOR REPORTING   PETITION
    (12/31/10)   MONTH   DATE (12/10/10)
 
ASSETS
                        
 
                        
CURRENT ASSETS:
                        
Cash and cash equivalents
     114,496       —       2,170,435  
Trade accounts receivable, net
     20,160,729       —       19,871,688  
Other receivables, net
     346,216       —       273,499  
Receivables from Non-Debtor entities
     6,261,155       —       5,437,628  
Other current assets (See detail below)
     5,823,736       —       5,818,468  
     
Total current assets
     32,706,332       —       33,571,717  
 
                        
PROPERTY AND EQUIPMENT:
                        
Vehicles
     3,988,103       —       4,070,733  
Land, building and leasehold improvements
     29,861,402       —       29,854,562  
Computer and office equipment
     52,342,481       —       51,272,642  
Diagnostic and related equipment
     268,028,627       —       269,577,187  
Construction In Progress
     8,676,086       —       9,666,369  
Fixed Asset Clearing
     1,152,690       —       1,186,298  
Equipment and vehicles under lease
     1,594,794       —       1,594,794  
MIS Equipment Clearing
     221,872       —       209,161  
     
Total property and equipment
     365,866,055       —       367,431,745  
Less: Accumulated depreciation
     (303,076,106 )     —       (303,949,954 )
     
Property and equipment, net
     62,789,949       —       63,481,791  
 
                        
INVESTMENT IN JOINT VENTURES
     7,123,070       —       7,108,873  
CASH, Restricted
     3,947,024       —       3,312,022  
OTHER ASSETS (See detail below)
     286,835       —       287,789  
GOODWILL and INTANGIBLE ASSETS, net
     16,129,602       —       16,448,657  
 
TOTAL ASSETS
     122,982,813       —       124,210,850  
 
 
                        
LIABILITIES AND STOCKHOLDERS’ EQUITY
                        
 
                        
CURRENT LIABILITIES:
                        
Liabilities subject to compromise
     294,042,658       —       —  
Current portion of equipment and other notes
     124,827       —       288,157,175  
Current portion of capital lease obligations
     478,685       —       474,725  
Accrued equipment related costs
     897,545       —       929,954  
Accounts payable and other accrued expenses (see detail below)
     11,407,703       —       15,211,703  
Accrued payroll and related costs
     8,940,170       —       10,020,253  
Deferred rent
     986,398       —       984,237  
     
Total current liabilities
     316,877,986       —       315,778,046  
 
                        
LONG TERM LIABILITIES:
                        
Equipment and other notes, less current portion
     306,515       —       317,428  
Capital lease obligations, less current portion
     740,146       —       783,732  
Long Term Deferred Income Taxes
     5,401,554       —       5,431,808  
Long Term Income Taxes Payable
     834,139       —       799,063  
     
Total long term liabilities
     7,282,354       —       7,332,031  
 
                        
STOCKHOLDERS’ EQUITY (DEFICIT):
                        
Common stock
     8,644       —       8,644  
Additional paid-in capital
     37,642,005       —       37,626,764  
Other Comprehensive Income
     (22 )     —       (22 )
Accumulated earnings (deficit)
     (238,828,154 )     —       (236,534,613 )
     
Total stockholders’ equity (deficit)
     (201,177,527 )     —       (198,899,227 )
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
     122,982,813       —       124,210,850  
 
See Notes to MOR.
FORM MOR-3
PAGE 1 OF 2

 

 

             
In re:
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated):   10-16564 (AJG)
 
  Debtor   Reporting Period:   December 31, 2010
BALANCE SHEET — continuation section
                         
    BOOK VALUE CURRENT   BOOK VALUE AT END OF   BOOK VALUE ON
    REPORTING MONTH   PRIOR REPORTING   PETITION DATE
ASSETS   (12/31/10)   MONTH   (12/10/10)
 
Other Current Assets:
                        
Prepaid insurance
     2,145,611               2,046,280  
Deposits — security
     521,089               468,369  
Prepaid hardware & software maintenance agreements
     418,595               458,713  
Medical inventory
     361,615               361,615  
Prepaid wholesale commissions
     459,229               475,181  
Prepaid operating lease payments
     811,882               827,079  
Prepaid other
     1,105,716               1,181,230  
     
Total other current assets
     5,823,736       —       5,818,468  
 
                        
Other Assets:
                        
Investment in Canadian Joint Venture
     252,078       —       252,078  
Other long-term assets
     34,757       —       35,711  
     
Total other assets
     286,835       —       287,789  
                         
    BOOK VALUE CURRENT   BOOK VALUE AT END OF   BOOK VALUE ON
    REPORTING MONTH   PRIOR REPORTING   PETITION DATE
LIABILITIES   (12/31/10)   MONTH   (12/10/10)
 
Accounts payable and other accrued expenses:
                        
Accrued professional and legal fees
     1,248,837               732,627  
Accrued physician fees
     1,297,944               604,421  
Accrued interest
     17,864               5,577,751  
Accrued taxes
     254,009               192,615  
Asset retirement obligations and center closure costs
     344,134               416,208  
Accrued business insurance
     2,189,451               2,637,689  
Accounts payable
     2,247,314               88,960  
Deferred revenue
     533,416               185,536  
Unclaimed funds
     878,711               878,711  
Other accrued expenses
     2,396,023               3,897,186  
     
 
     11,407,703               15,211,703  
 
                        
Liabilities Subject to Compromise:
                        
FRN Bonds (net of bond discount)
     288,033,441               —  
FRN Accrued Interest
     6,009,217               —  
     
 
     294,042,658               —  
See Notes to MOR.
FORM MOR-3
PAGE 2 OF 2

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG)
 
  Debtor   Reporting Period:   December 31, 2010
STATUS OF POST-PETITION TAXES
The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.
Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.
Attach photocopies of any tax returns filed during the reporting period.
                                                 
            Amount                
            Withheld                
Federal   Beginning Tax   and/or Accrued   Amount Paid   Date Paid   Check # or EFT   Ending Tax
Withholding
   $ —       536,153.35       533,772.39       12/29/2010             $ 2,380.96  
FICA-Employee
     —       309,736.16       308,647.45       12/29/2010               1,088.71  
FICA-Employer
     —       305,741.78       304,653.07       12/29/2010               1,088.71  
Unemployment
     —       2,127.46       2,116.69       12/29/2010               10.77  
Income
     —       67,623.00       —                       67,623.00  
                                 
Total Federal Taxes
   $ —       1,221,381.75       1,149,189.60                     $ 72,192.15  
                               
State and Local
                                                
Withholding
   $ —       159,380.74       158,827.71       12/29/2010             $ 553.03  
Sales
     —       32,224.07       —                       32,224.07  
Excise
     —       —       —                       —  
Unemployment
     —       8,452.15       7,659.75       12/29/2010               792.40  
Real Property
     —       —       —                       —  
Personal Property
     —       67,668.33       —                       67,668.33  
Disability and other
     —       12,146.43       12,081.06       12/29/2010               65.37  
Total State and Local
   $ —       279,871.72       178,568.52                     $ 101,303.20  
 
                                                
                                 
Total Taxes
   $ —       1,501,253.47       1,327,758.12       —       —     $ 173,495.35  
                               
SUMMARY OF UNPAID POST-PETITION DEBTS
Attach aged listing of accounts payable.
                                                 
    Number of Days Past Due
    Current   0-30   31-60   61-90   Over 91   Total
Accounts Payable
   $ 170,515.79     $ —     $ —     $ —     $ —     $ 170,515.79  
Wages Payable
     1,207,729.49       —       —       —       —       1,207,729.49  
Taxes Payable
     173,495.35       —       —       —       —       173,495.35  
Rent/Leases-Building
     —       47,298.83       —       —       —       47,298.83  
Rent/Leases-Equipment
     —       —       —       —       —       —  
Secured Debt/Adequate Protection Payments
     —       —       —       —       —       —  
Professional Fees
     —       —       —       —       —       —  
Amounts Due to Insiders
     —       —       —       —       —       —  
Severance Payable
     21,629.48       —       —       —       —       21,629.48  
Physician Fees
     693,523.00       —       —       —       —       693,523.00  
                                     
Total Post-petition Debts
   $ 2,266,893.11     $ 47,298.83     $ —     $ —     $ —     $ 2,314,191.94  
                                     
See Notes to MOR.
FORM MOR-4
PAGE 1 OF 1

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG)
 
  Debtor   Reporting Period:   December 31, 2010
 
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
                         
Accounts Receivable Reconciliation   Retail   Wholesale   Total
Total Accounts Receivable (gross) at the beginning of the reporting period
   $ 38,285,744     $ 9,555,714     $ 47,841,457  
Plus: Gross charges
     17,029,791       6,198,515       23,228,306  
Less: Sales discounts
     (11,281,445 )     —       (11,281,445 )
Less: Deferred billings
     —       —       —  
Less: Amounts collected during the period
     (6,733,929 )     (5,312,678 )     (12,046,608 )
Less: Bad debt write-offs
     (313,020 )     —       (313,020 )
Less: Other adjustments
     (88,742 )     (102,844 )     (191,586 )
Plus: Patient refunds
     80,002       —       80,002  
                   
Total Accounts Receivable (gross) at the end of the reporting period
     36,978,400       10,338,706       47,317,106  
                   
                         
Accounts Receivable Aging   Retail   Wholesale   Total
0 - 30 days old
   $ 8,017,309     $ 5,829,307     $ 13,846,616  
31 - 60 days old
     10,053,286       2,141,748       12,195,034  
61 - 90 days old
     6,800,942       715,570       7,516,512  
91 - 120 days old
     4,766,844       472,179       5,239,023  
121 - 150 days old
     3,204,993       260,114       3,465,108  
151-365 days old
     4,391,550       772,549       5,164,099  
365+ days old
     (256,524 )     147,238       (109,285 )
                   
Total Accounts Receivable
     36,978,400       10,338,706       47,317,106  
                   
 
                        
Less: Contractual allowances
   $ (21,107,717 )   $ —       (21,107,717 )
Less: Bad Debts (Amount considered uncollectible)
     (2,778,615 )     (1,129,200 )     (3,907,815 )
Less: Radiologist Fee Reserve
     (2,140,845 )     —       (2,140,845 )
 
                        
Net Accounts Receivable
     10,951,223       9,209,506       20,160,729  
See Notes to MOR.
FORM MOR-5
PAGE 1 OF 1

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG)
 
  Debtor   Reporting Period:   December 31, 2010
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown on the Cash Receipts and Disbursements Report (MOR-1) list the amount paid to insiders (as defined in Section 101(31) (A)-(F) of the U.S. Bankruptcy Code) and to professionals. For payments to insiders, identify the type of compensation paid (e.g. Salary, Bonus, Commissions, Insurance, Housing Allowance, Travel, Car Allowance, Etc.). Attach additional sheets if necessary.
INSIDERS
                     
NAME   TYPE OF PAYMENT   AMOUNT PAID   TOTAL PAID TO DATE
Louis E. Hallman, III
   Salary   $ 8,365     $ 8,365  
Patricia R. Blank
   Salary     17,043       17,043  
Bernard O’Rourke
   Salary     15,747       15,747  
Keith S. Kelson
   Salary     15,000       15,000  
Donald F. Hankus
   Salary     12,261       12,261  
Scott McKee
   Salary     12,260       12,260  
Clark Nielsen
   Salary     10,673       10,673  
Michael Jones
   Salary     12,115       12,115  
Clark Nielsen
   Commission     1,555       1,555  
             
TOTAL PAYMENTS TO INSIDERS
   $ 105,019     $ 105,019  
             
PROFESSIONALS
                                         
    DATE OF COURT                                
    ORDER                                
    AUTHORIZING                             TOTAL INCURRED &  
NAME   PAYMENT     AMOUNT APPROVED     AMOUNT PAID     TOTAL PAID TO DATE     UNPAID*  
 
                                        
 
                                        
 
                                        
TOTAL PAYMENTS TO PROFESSIONALS
                                
 
*   INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
See Notes to MOR.
FORM MOR-6
PAGE 1 OF 1

 

 

             
In re
  Insight Health Services Holdings Corp., et al.   Case No. (Jointly Administrated)   10-16564 (AJG)
 
  Debtor   Reporting Period:   December 31, 2010
DEBTOR QUESTIONNAIRE
                 
        Must be completed each month. If the answer to any of the questions is “Yes”, provide a detailed explanation of each item.        
        Attach additional sheets if necessary.   Yes1   No 
  1    
Have any assets been sold or transferred outside the normal course of business this reporting period?
      X
       
 
        
  2    
Have any funds been disbursed from any account other than a debtor in possession account this reporting period?
      X
       
 
        
  3    
Is the Debtor delinquent in the timely filing of any post-petition tax returns?
      X
       
 
        
  4    
Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?
      X
       
 
        
  5    
Is the Debtor delinquent in paying any insurance premium payment?
      X
       
 
        
  6    
Have any payments been made on pre-petition liabilities this reporting period?
  X    
       
 
        
  7    
Are any post petition receivables (accounts, notes or loans) due from related parties?
  X    
       
 
        
  8    
Are any post petition payroll taxes past due?
      X
       
 
        
  9    
Are any post petition State or Federal income taxes past due?
      X
       
 
        
  10    
Are any post petition real estate taxes past due?
      X
       
 
        
  11    
Are any other post petition taxes past due?
      X
       
 
        
  12    
Have any pre-petition taxes been paid during this reporting period?
  X    
       
 
        
  13    
Are any amounts owed to post petition creditors delinquent?
      X
       
 
        
  14    
Are any wage payments past due?
      X
       
 
        
  15    
Have any post petition loans been been received by the Debtor from any party?
  X    
       
 
        
  16    
Is the Debtor delinquent in paying any U.S. Trustee fees?
      X
       
 
        
  17    
Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?
      X
       
 
        
  18    
Have the owners or shareholders received any compensation outside of the normal course of business?
      X
1. See Notes to MOR.
FORM MOR-7
PAGE 1 OF 1