EX-99 6 ex99-3_020707.htm EX-99.3, AXIA'S UNAUDITED FINANCIAL STATEMENTS

Exhibit 99.3

 

AXIA HEALTH MANAGEMENT, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Month Period Ended September 30, 2005

(Unaudited)

 

 

 

 

 

 

Nine Month

 

 

 

 

 

 

 

Period Ended

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

$

48,130,090

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services (exclusive of depreciation and

 

 

 

 

 

 

 

 

amortization shown separately below)

 

 

 

 

(21,478,281

)

 

 

 

 

 

 

 

 

 

 

 

Selling and general and administrative expenses

 

 

 

 

(17,448,949

)

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

(2,471,506

)

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

(2,545,882

)

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

67,250

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

4,415

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings before income taxes

 

 

 

 

4,257,137

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

 

 

(2,463,363

)

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

 

 

$

1,793,774

 

 

 

 

 

 

 

 

 

 

 

 

1

 


 

AXIA HEALTH MANAGEMENT, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Month Period Ended September 30, 2005

Unaudited

 

 

 

 

 

Nine Month

 

 

 

 

 

 

 

Period Ended

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING

 

 

 

 

 

 

 

 

ACTIVITIES

 

 

 

 

 

 

 

 

Net earnings

 

 

 

$

1,793,774

 

 

 

Adjustments to reconcile net earnings

 

 

 

 

 

 

 

 

to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization of property

 

 

 

 

301,945

 

 

 

Amortization of intangible assets and loan origination costs

 

 

 

 

2,890,077

 

 

 

Deferred income taxes

 

 

 

 

(3,392,772

)

 

 

Increase (decrease) in cash resulting from changes in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

 

(4,720,123

)

 

 

Income taxes receivable

 

 

 

 

150,000

 

 

 

Inventory

 

 

 

 

(325,497

)

 

 

Prepaid expenses

 

 

 

 

(578,431

)

 

 

Deposits

 

 

 

 

279,024

 

 

 

Other current assets

 

 

 

 

(32,184

)

 

 

Accounts payable

 

 

 

 

2,231,007

 

 

 

Accrued expenses

 

 

 

 

586,715

 

 

 

Accrued interest on notes payable

 

 

 

 

102,885

 

 

 

Deferred revenue

 

 

 

 

634,521

 

 

 

Income taxes payable

 

 

 

 

1,285,100

 

 

 

Medical claims payable

 

 

 

 

914,746

 

 

 

Customer deposits

 

 

 

 

(68,614

)

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

 

 

 

2,052,173

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING

 

 

 

 

 

 

 

 

ACTIVITIES

 

 

 

 

 

 

 

 

Investment in certificate of deposit

 

 

 

 

(126,446

)

 

 

Purchases of subsidiaries, net of cash acquired

 

 

 

 

(32,730,746

)

 

 

Additional purchase cost of HCD

 

 

 

 

(2,996,909

)

 

 

Additional purchase cost of AWH

 

 

 

 

(100,000

)

 

 

Deposits to escrow

 

 

 

 

(4,200,000

)

 

 

Purchases of property and equipment

 

 

 

 

(925,416

)

 

 

Release of deposits in escrow

 

 

 

 

3,096,909

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

 

 

(37,982,608

)

 

 

 

(Continued)

 

2

 


 

AXIA HEALTH MANAGEMENT, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

Nine Month Period Ended September 30, 2005

Unaudited

 

 

 

 

 

 

Nine Month

 

 

 

 

 

 

 

Period Ended

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING

 

 

 

 

 

 

 

 

ACTIVITIES

 

 

 

 

 

 

 

 

Members’ capital contributions

 

 

 

 

15,549,500

 

 

 

Rollover membership interest

 

 

 

 

1,567,440

 

 

 

Payments made on notes payable

 

 

 

 

(3,520,000

)

 

 

Proceeds from issuance of notes payable

 

 

 

 

20,760,000

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by financing activities

 

 

 

 

34,356,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET DECREASE IN CASH

 

 

 

 

 

 

 

 

AND CASH EQUIVALENTS

 

 

 

 

(1,573,495

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS,

 

 

 

 

 

 

 

 

BEGINNING OF PERIOD

 

 

 

 

2,939,840

 

 

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS,

 

 

 

 

 

 

 

 

END OF PERIOD

 

 

 

$

1,366,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3