Note 14 - Condensed Consolidating Financial Information of Guarantor Subsidiaries

9 Months Ended

Sep. 30, 2014

Condensed Consolidating Financial Information Of Guarantor Subsidiaries [Abstract]

Condensed Consolidating Financial Information Of Guarantor Subsidiaries [Text Block]

(14)           Condensed Consolidating Financial Information of Guarantor Subsidiaries

The Company has outstanding certain indebtedness that is guaranteed by all of its U.S. subsidiaries. However, the indebtedness is not guaranteed by the Company’s foreign subsidiaries. The guarantor subsidiaries are 100% owned and the guarantees are made on a joint and several basis, and are full and unconditional. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information as of December 31, 2013 and September 30, 2014, and for the three and nine months ended September 30, 2013 and 2014 is presented below. The Company (issuer of the Senior Unsecured Notes) was formed in June 2010 to implement a holding company organizational structure. As a result, all operating activities are conducted through the Company’s 100% owned subsidiaries.

	Guarantor Subsidiaries			Non- Guarantor Subsidiaries			ExamWorks Group, Inc. (Parent Corporation)			Consolidation and Elimination Entries		Consolidated Totals
Revenues	$	93,963		$	58,391		$	—		$	—	$	152,354
Costs and expenses:
Costs of revenues		66,733			34,098			—			—		100,831
Selling, general and administrative expenses		15,902			15,718			—			—		31,620
Depreciation and amortization		7,730			8,180			—			—		15,910
Total costs and expenses		90,365			57,996			—			—		148,361
Income from operations		3,598			395			—			—		3,993
Interest and other expenses, net		5,512			1,804			—			—		7,316
Loss before income taxes		(1,914	)		(1,409	)		—			—		(3,323	)
Provision (benefit) for income taxes		(3,451	)		2,379			—			—		(1,072	)
Net income (loss) before earnings of consolidated subsidiaries	$	1,537		$	(3,788	)	$	—		$	—	$	(2,251	)
Net income (loss) of consolidated subsidiaries		(3,788	)		—			(3,788	)		7,576		—
Net income (loss)	$	(2,251	)	$	(3,788	)	$	(3,788	)	$	7,576	$	(2,251	)

	Guarantor Subsidiaries			Non- Guarantor Subsidiaries			ExamWorks Group, Inc. (Parent Corporation)			Consolidation and Elimination Entries		Consolidated Totals
Revenues	$	280,634		$	176,571		$	—		$	—	$	457,205
Costs and expenses:
Costs of revenues		197,937			102,396			—			—		300,333
Selling, general and administrative expenses		51,306			47,647			—			—		98,953
Depreciation and amortization		24,609			23,449			—			—		48,058
Total costs and expenses		273,852			173,492			—			—		447,344
Income from operations		6,782			3,079			—			—		9,861
Interest and other expenses, net		16,859			5,687			—			—		22,546
Loss before income taxes		(10,077	)		(2,608	)		—			—		(12,685	)
Provision (benefit) for income taxes		(8,329	)		4,270			—			—		(4,059	)
Net loss before earnings of consolidated subsidiaries	$	(1,748	)	$	(6,878	)	$	—		$	—	$	(8,626	)
Net income (loss) of consolidated subsidiaries		(6,878	)		—			(6,878	)		13,756		—
Net income (loss)	$	(8,626	)	$	(6,878	)	$	(6,878	)	$	13,756	$	(8,626	)

	Guarantor Subsidiaries		Non- Guarantor Subsidiaries		ExamWorks Group, Inc. (Parent Corporation)		Consolidation and Elimination Entries			Consolidated Totals
Revenues	$	123,112	$	80,966	$	—	$	—		$	204,078
Costs and expenses:
Costs of revenues		80,796		49,801		—		—			130,597
Selling, general and administrative expenses		22,970		20,564		—		—			43,534
Depreciation and amortization		9,149		6,556		—		—			15,705
Total costs and expenses		112,915		76,921		—		—			189,836
Income from operations		10,197		4,045		—		—			14,242
Interest and other expenses, net		6,346		2,009		—		—			8,355
Income before income taxes		3,851		2,036		—		—			5,887
Provision for income taxes		1,024		1,448		—		—			2,472
Net income before earnings of consolidated subsidiaries	$	2,827	$	588	$	—	$	—		$	3,415
Net income (loss) of consolidated subsidiaries		588		—		588		(1,176	)		—
Net income (loss)	$	3,415	$	588	$	588	$	(1,176	)	$	3,415

	Guarantor Subsidiaries			Non- Guarantor Subsidiaries			ExamWorks Group, Inc. (Parent Corporation)			Consolidation and Elimination Entries		Consolidated Totals
Revenues	$	346,504		$	227,047		$	—		$	—	$	573,551
Costs and expenses:
Costs of revenues		228,346			138,137			—			—		366,483
Selling, general and administrative expenses		66,521			60,131			—			—		126,652
Depreciation and amortization		25,037			19,868			—			—		44,905
Total costs and expenses		319,904			218,136			—			—		538,040
Income from operations		26,600			8,911			—			—		35,511
Interest and other expenses, net		18,154			5,873			—			—		24,027
Income before income taxes		8,446			3,038			—			—		11,484
Provision for income taxes		498			4,328			—			—		4,826
Net income (loss) before earnings of consolidated subsidiaries	$	7,948		$	(1,290	)	$	—		$	—	$	6,658
Net income (loss) of consolidated subsidiaries		(1,290	)		—			(1,290	)		2,580		—
Net income (loss)	$	6,658		$	(1,290	)	$	(1,290	)	$	2,580	$	6,658

	Guarantor Subsidiaries		Non- Guarantor Subsidiaries		ExamWorks Group, Inc. (Parent Corporation)		Consolidation and Elimination Entries			Consolidated Totals
Assets
Current assets:
Cash and cash equivalents	$	760	$	12,069	$	—	$	—		$	12,829
Accounts receivable, net		46,828		123,077		—		—			169,905
Intercompany receivable		19,120		—		10,431		(29,551	)		—
Prepaid expenses		2,889		2,896		—		—			5,785
Deferred tax assets		437		—		—		(4	)		433
Other current assets		61		1,237		—		—			1,298
Total current assets		70,095		139,279		10,431		(29,555	)		190,250
Property, equipment and leasehold improvements, net		6,760		4,190		—		—			10,950
Investment in subsidiaries		217,034		—		414,802		(631,836	)		—
Intercompany notes receivable		174,826		—		174,826		(349,652	)		—
Goodwill		259,316		109,996		—		—			369,312
Intangible assets, net		37,172		57,692		—		—			94,864
Long-term accounts receivable, less current portion		—		35,952		—		—			35,952
Deferred tax assets, noncurrent		15,470		6,021		—		—			21,491
Deferred financing costs, net		8,100		93		8,100		(8,100	)		8,193
Other assets		497		1,004		—		—			1,501
Total assets	$	789,270	$	354,227	$	608,159	$	(1,019,143	)	$	732,513
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	17,524	$	35,148	$	—	$	—		$	52,672
Intercompany payable		10,431		19,120		—		(29,551	)		—
Accrued expenses		10,839		27,609		—		—			38,448
Accrued interest expense		—		—		10,431		—			10,431
Deferred revenue		100		5,695		—		—			5,795
Subordinated unsecured notes payable		318		—		—		—			318
Deferred tax liability		—		4		—		(4	)		—
Current portion of contingent earnout obligation		—		2,032		—		—			2,032
Other current liabilities		2,116		4,322		—		—			6,438
Total current liabilities		41,328		93,930		10,431		(29,555	)		116,134
Senior unsecured notes payable		—		—		250,000		—			250,000
Senior secured revolving credit facility and working capital facilities		—		37,943		45,027		—			82,970
Intercompany notes payable		174,826		174,826		—		(349,652	)		—
Long-term contingent earnout obligation, less current portion		—		2,373		—		—			2,373
Other long-term liabilities		1,791		6,374		—		—			8,165
Total liabilities		217,945		315,446		305,458		(379,207	)		459,642
Commitments and contingencies
Stockholders’ equity (deficit)		571,325		38,781		302,701		(639,936	)		272,871
Total liabilities and stockholders' equity (deficit)	$	789,270	$	354,227	$	608,159	$	(1,019,143	)	$	732,513

	Guarantor Subsidiaries		Non- Guarantor Subsidiaries		ExamWorks Group, Inc. (Parent Corporation)		Consolidation and Elimination Entries			Consolidated Totals
Assets
Current assets:
Cash and cash equivalents	$	981	$	8,130	$	—	$	—		$	9,111
Accounts receivable, net		59,150		142,348		—		—			201,498
Intercompany receivable		35,935		—		5,075		(41,010	)		—
Prepaid expenses		4,715		6,117		—		—			10,832
Deferred tax assets		4,305		—		—		(4	)		4,301
Other current assets		—		1,218		—		—			1,218
Total current assets		105,086		157,813		5,075		(41,014	)		226,960
Property, equipment and leasehold improvements, net		9,843		4,685		—		—			14,528
Investment in subsidiaries		220,649		—		602,297		(822,946	)		—
Intercompany notes receivable		174,957		—		174,957		(349,914	)		—
Goodwill		387,093		117,534		—		—			504,627
Intangible assets, net		73,098		46,007		—		—			119,105
Long-term accounts receivable, less current portion		—		46,462		—		—			46,462
Deferred tax assets, noncurrent		12,587		7,046		—		—			19,633
Deferred financing costs, net		6,677		45		—		—			6,722
Other assets		642		1,338		—		—			1,980
Total assets	$	990,632	$	380,930	$	782,329	$	(1,213,874	)	$	940,017
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	23,741	$	38,723	$	—	$	—		$	62,464
Intercompany payable		5,075		35,935		—		(41,010	)		—
Accrued expenses		18,489		27,732		—		—			46,221
Accrued interest expense		—		—		5,075		—			5,075
Deferred revenue		264		6,125		—		—			6,389
Deferred tax liability		—		4		—		(4	)		—
Current portion of contingent earnout obligation		—		4,675		—		—			4,675
Current portion of working capital facilities		—		44,668		—		—			44,668
Other current liabilities		3,010		4,829		—		—			7,839
Total current liabilities		50,579		162,691		5,075		(41,014	)		177,331
Senior unsecured notes payable		—		—		250,000		—			250,000
Senior secured revolving credit facility		—		—		163,358		—			163,358
Intercompany notes payable		174,957		174,957		—		(349,914	)		—
Long-term contingent earnout obligation, less current portion		—		2,179		—		—			2,179
Other long-term liabilities		1,718		7,401		—		—			9,119
Total liabilities		227,254		347,228		418,433		(390,928	)		601,987
Commitments and contingencies
Stockholders’ equity (deficit)		763,378		33,702		363,896		(822,946	)		338,030
Total liabilities and stockholders' equity (deficit)	$	990,632	$	380,930	$	782,329	$	(1,213,874	)	$	940,017

	Guarantor Subsidiaries			Non- Guarantor Subsidiaries			ExamWorks Group, Inc. (Parent Corporation)			Consolidation and Elimination Entries		Consolidated Totals
Net cash provided by operating activities	$	13,477		$	9,241		$	—		$	—	$	22,718
Investing activities:
Purchases of building, equipment and leasehold improvements, net		(2,170	)		(2,588	)		—			—		(4,758	)
Working capital and other settlements for acquisitions		(444	)		(125	)		—			—		(569	)
Proceeds from foreign currency net investment hedges		500			—			—			—		500
Other		(332	)		—			—			—		(332	)
Net cash used in investing activities		(2,446	)		(2,713	)		—			—		(5,159	)
Financing activities:
Borrowings under senior secured revolving credit facility		—			—			103,597			—		103,597
Proceeds from the exercise of options and warrants		—			—			13,089			—		13,089
Excess tax benefit related to share-based compensation		—			—			5,974			—		5,974
Net borrowings under working capital facilities		—			215			—			—		215
Payment of deferred financing costs		—			(116	)		(52	)		—		(168	)
Repayment of subordinated unsecured notes payable		(270	)		—			—			—		(270	)
Repayment under senior secured revolving credit facility		—			—			(136,301	)		—		(136,301	)
Intercompany notes and investments and other		(13,693	)		—			13,693			—		—
Net cash provided by (used in) financing activities		(13,963	)		99			—			—		(13,864	)
Exchange rate impact on cash and cash equivalents		—			(277	)		—			—		(277	)
Net increase (decrease) in cash and cash equivalents		(2,932	)		6,350			—			—		3,418
Cash and cash equivalents, beginning of period		4,125			4,502			—			—		8,627
Cash and cash equivalents, end of period	$	1,193		$	10,852		$	—		$	—	$	12,045

	Guarantor Subsidiaries			Non- Guarantor Subsidiaries			ExamWorks Group, Inc. (Parent Corporation)			Consolidation and Elimination Entries		Consolidated Totals
Net cash provided by operating activities	$	18,266		$	6,695		$	—		$	—	$	24,961
Investing activities:
Cash paid for acquisitions, net		(177,864	)		(9,538	)		—			—		(187,402	)
Purchases of building, equipment and leasehold improvements, net		(4,171	)		(2,021	)		—			—		(6,192	)
Working capital and other settlements for acquisitions		(497	)		(1,869	)		—			—		(2,366	)
Cash paid for foreign currency net investment hedges		(362	)		—			—			—		(362	)
Other		(939	)		—			—			—		(939	)
Net cash used in investing activities		(183,833	)		(13,428	)		—			—		(197,261	)
Financing activities:
Borrowings under senior secured revolving credit facility		—			—			269,621			—		269,621
Proceeds from the exercise of options and warrants					—			35,394			—		35,394
Excess tax benefit related to share-based compensation					—			12,700			—		12,700
Net borrowings under working capital facilities					7,506			—			—		7,506
Payment of deferred financing costs					—			(251	)		—		(251	)
Repayment of subordinated unsecured notes payable		(333	)		—			—			—		(333	)
Payment of contingent earnout obligation		—			(4,362	)		—			—		(4,362	)
Repayment under senior secured revolving credit facility		—			—			(151,290	)		—		(151,290	)
Intercompany notes and investments and other		166,121			—			(166,174	)		—		(53	)
Net cash provided by financing activities		165,788			3,144			—			—		168,932
Exchange rate impact on cash and cash equivalents		—			(350	)		—			—		(350	)
Net increase (decrease) in cash and cash equivalents		221			(3,939	)		—			—		(3,718	)
Cash and cash equivalents, beginning of period		760			12,069			—			—		12,829
Cash and cash equivalents, end of period	$	981		$	8,130		$	—		$	—	$	9,111