Guarantor

9 Months Ended

Sep. 30, 2013

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

(13) Financial Information for the Company and Its Subsidiaries

As previously discussed in note 7(b), the Company issued the Senior Unsecured Notes in the aggregate principal amount of $250,000,000 in 2012. The Senior Unsecured Notes are senior unsecured obligations of the Company and are guaranteed by its existing and subsequently acquired or organized wholly owned domestic subsidiaries. The Senior Unsecured Notes are guaranteed on a full and unconditional and joint and several basis, with limited exceptions considered customary for such guarantees, including the release of the guarantee when a subsidiary's assets are sold. The following condensed consolidating financial statements present the Company (as parent issuer), the subsidiary guarantors, the subsidiary non-guarantors and consolidating adjustments. These condensed consolidating financial statements have been prepared and presented in accordance with SEC Regulation S-X Rule 3-10 "Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered." The operating and investing activities of the separate legal entities are fully interdependent and integrated. Accordingly, the results of the separate legal entities are not representative of what the operating results would be on a stand-alone basis.

Condensed Consolidating Balance Sheet - September 30, 2013 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Assets
Current assets:
	Cash and cash equivalents			$	4,261	$	-	$	41,242	$	-	$	45,503
	Accounts receivable, net				-		-		104,285		-		104,285
	Supplies inventory				13		-		18,928		-		18,941
	Deferred income taxes				4,388		-		-		-		4,388
	Prepaid and other current assets				21,324		-		11,990		(4,030)		29,284
		Total current assets			29,986		-		176,445		(4,030)		202,401
Property and equipment, net					10,101		-		157,928		-		168,029
Investments in unconsolidated affiliates and long-term notes receivable					1,470,124		1,440,558		-		(2,893,712)		16,970
Goodwill and other intangible assets, net					21,114		-		1,034		1,738,033		1,760,181
			Total assets	$	1,531,325	$	1,440,558	$	335,407	$	(1,159,709)	$	2,147,581
Liabilities and Equity
Current liabilities:
	Current portion of long-term debt			$	10,715	$	-	$	10,654	$	-	$	21,369
	Accounts payable				1,422		-		25,076		(4,029)		22,469
	Accrued liabilities				27,340		-		18,339		-		45,679
		Total current liabilities			39,477		-		54,069		(4,029)		89,517
Long-term debt					577,607		-		51,345		(29,566)		599,386
Deferred income taxes					165,826		-		-		-		165,826
Other long-term liabilities					8,825		-		17,398		-		26,223
Noncontrolling interests – redeemable					-		-		61,497		113,838		175,335
Equity:
		Total AmSurg Corp. equity			739,590		1,440,558		112,371		(1,552,929)		739,590
		Noncontrolling interests – non-redeemable			-		-		38,727		312,977		351,704
		Total equity			739,590		1,440,558		151,098		(1,239,952)		1,091,294
			Total liabilities and equity	$	1,531,325	$	1,440,558	$	335,407	$	(1,159,709)	$	2,147,581

Condensed Consolidating Balance Sheet - December 31, 2012 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Assets
Current assets:
	Cash and cash equivalents			$	7,259	$	-	$	39,139	$	-	$	46,398
	Accounts receivable, net				-		-		96,752		-		96,752
	Supplies inventory				-		-		18,406		-		18,406
	Deferred income taxes				3,088		-		-		-		3,088
	Prepaid and other current assets				19,342		-		13,160		(4,965)		27,537
		Total current assets			29,689		-		167,457		(4,965)		192,181
Property and equipment, net					9,199		-		157,413		-		166,612
Investments in unconsolidated affiliates and long-term notes receivable					1,413,061		1,381,596		-		(2,783,383)		11,274
Goodwill and other intangible assets, net					21,311		-		1,206		1,652,002		1,674,519
			Total assets	$	1,473,260	$	1,381,596	$	326,076	$	(1,136,346)	$	2,044,586
Liabilities and Equity
Current liabilities:
	Current portion of long-term debt			$	5,357	$	-	$	12,050	$	-	$	17,407
	Accounts payable				1,379		-		26,035		(3,905)		23,509
	Accrued liabilities				29,380		-		15,177		(1,060)		43,497
		Total current liabilities			36,116		-		53,262		(4,965)		84,413
Long-term debt					599,423		-		52,747		(31,465)		620,705
Deferred income taxes					137,648		-		-		-		137,648
Other long-term liabilities					10,585		-		15,387		-		25,972
Noncontrolling interests – redeemable					-		-		61,939		113,443		175,382
Equity:
		Total AmSurg Corp. equity			689,488		1,381,596		108,412		(1,490,008)		689,488
		Noncontrolling interests – non-redeemable			-		-		34,329		276,649		310,978
		Total equity			689,488		1,381,596		142,741		(1,213,359)		1,000,466
			Total liabilities and equity	$	1,473,260	$	1,381,596	$	326,076	$	(1,136,346)	$	2,044,586

Condensed Consolidating Statement of Earnings and Comprehensive Income - For the Three Months Ended September 30, 2013 (In thousands)
							Guarantor		Non-Guarantor		Consolidating		Total
					Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues					$	6,273	$	-	$	266,241	$	(4,281)	$	268,233
Operating expenses:
	Salaries and benefits					16,088		-		68,948		(118)		84,918
	Supply cost					-		-		38,357		-		38,357
	Other operating expenses					5,537		-		55,017		(4,163)		56,391
	Depreciation and amortization					847		-		7,551		-		8,398
		Total operating expenses				22,472		-		169,873		(4,281)		188,064
Gain on deconsolidation						-		-		-		-		-
Equity in earnings of unconsolidated affiliates						50,969		50,969		-		(100,843)		1,095
		Operating income				34,770		50,969		96,368		(100,843)		81,264
Interest expense						6,711		-		584		-		7,295
	Earnings from continuing operations before income taxes					28,059		50,969		95,784		(100,843)		73,969
Income tax expense						11,010		-		414		-		11,424
	Net earnings from continuing operations					17,049		50,969		95,370		(100,843)		62,545
	Net loss from discontinued operations					(278)		-		-		-		(278)
		Net earnings and comprehensive income				16,771		50,969		95,370		(100,843)		62,267
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations					-		-		45,496		-		45,496
	Net earnings from discontinued operations					-		-		-		-		-
		Total net earnings attributable to noncontrolling interests				-		-		45,496		-		45,496
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	16,771	$	50,969	$	49,874	$	(100,843)	$	16,771
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax				$	17,049	$	50,969	$	49,874	$	(100,843)	$	17,049
	Discontinued operations, net of income tax					(278)		-		-		-		(278)
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	16,771	$	50,969	$	49,874	$	(100,843)	$	16,771

Condensed Consolidating Statement of Earnings and Comprehensive Income - For the Nine Months Ended September 30, 2013 (In thousands)
							Guarantor		Non-Guarantor		Consolidating		Total
					Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues					$	17,449	$	-	$	792,609	$	(12,872)	$	797,186
Operating expenses:
	Salaries and benefits					45,940		-		202,466		(348)		248,058
	Supply cost					-		-		115,408		-		115,408
	Other operating expenses					15,768		-		160,667		(12,524)		163,911
	Depreciation and amortization					2,379		-		22,272		-		24,651
		Total operating expenses				64,087		-		500,813		(12,872)		552,028
Gain on deconsolidation						2,237		2,237		-		(2,237)		2,237
Equity in earnings of unconsolidated affiliates						153,850		153,850		-		(305,507)		2,193
		Operating income				109,449		156,087		291,796		(307,744)		249,588
Interest expense						20,661		-		1,691		-		22,352
	Earnings from continuing operations before income taxes					88,788		156,087		290,105		(307,744)		227,236
Income tax expense						35,371		-		1,191		-		36,562
	Net earnings from continuing operations					53,417		156,087		288,914		(307,744)		190,674
	Net loss from discontinued operations					(272)		-		(26)		-		(298)
		Net earnings				53,145		156,087		288,888		(307,744)		190,376
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations					-		-		137,244		-		137,244
	Net loss from discontinued operations					-		-		(13)		-		(13)
		Total net earnings attributable to noncontrolling interests				-		-		137,231		-		137,231
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	53,145	$	156,087	$	151,657	$	(307,744)	$	53,145
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax				$	53,417	$	156,087	$	151,670	$	(307,744)	$	53,430
	Discontinued operations, net of income tax					(272)		-		(13)		-		(285)
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	53,145	$	156,087	$	151,657	$	(307,744)	$	53,145

Condensed Consolidating Statement of Earnings and Comprehensive Income - For the Three Months Ended September 30, 2012 (In thousands)
							Guarantor		Non-Guarantor		Consolidating		Total
					Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues					$	5,171	$	-	$	223,459	$	(3,714)	$	224,916
Operating expenses:
	Salaries and benefits					14,140		-		58,247		(86)		72,301
	Supply cost					-		-		31,400		-		31,400
	Other operating expenses					4,335		-		46,261		(3,628)		46,968
	Depreciation and amortization					734		-		6,856		-		7,590
		Total operating expenses				19,209		-		142,764		(3,714)		158,259
Gain on deconsolidation						-		-		-		-		-
Equity in earnings of unconsolidated affiliates						42,339		42,339		-		(84,286)		392
		Operating income				28,301		42,339		80,695		(84,286)		67,049
Interest expense						3,089		-		447		-		3,536
	Earnings from continuing operations before income taxes					25,212		42,339		80,248		(84,286)		63,513
Income tax expense						9,687		-		445		-		10,132
	Net earnings from continuing operations					15,525		42,339		79,803		(84,286)		53,381
	Net (loss) earnings from discontinued operations					(88)		-		472		-		384
		Net earnings and comprehensive income				15,437		42,339		80,275		(84,286)		53,765
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations					-		-		38,093		-		38,093
	Net earnings from discontinued operations					-		-		235		-		235
		Total net earnings attributable to noncontrolling interests				-		-		38,328		-		38,328
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	15,437	$	42,339	$	41,947	$	(84,286)	$	15,437
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax				$	15,525	$	42,339	$	41,710	$	(84,286)	$	15,288
	Discontinued operations, net of income tax					(88)		-		237		-		149
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	15,437	$	42,339	$	41,947	$	(84,286)	$	15,437

Condensed Consolidating Statement of Earnings and Comprehensive Income - For the Nine Months Ended September 30, 2012 (In thousands)
							Guarantor		Non-Guarantor		Consolidating		Total
					Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues					$	14,816	$	-	$	679,827	$	(11,000)	$	683,643
Operating expenses:
	Salaries and benefits					40,739		-		174,378		(259)		214,858
	Supply cost					-		-		96,397		-		96,397
	Other operating expenses					14,194		-		138,848		(10,741)		142,301
	Depreciation and amortization					2,079		-		20,266		-		22,345
		Total operating expenses				57,012		-		429,889		(11,000)		475,901
Gain on deconsolidation						-		-		-		-		-
Equity in earnings of unconsolidated affiliates						130,918		130,918		-		(260,733)		1,103
		Operating income				88,722		130,918		249,938		(260,733)		208,845
Interest expense						10,371		-		1,590		-		11,961
	Earnings from continuing operations before income taxes					78,351		130,918		248,348		(260,733)		196,884
Income tax expense						30,820		-		1,290		-		32,110
	Net earnings from continuing operations					47,531		130,918		247,058		(260,733)		164,774
	Net (loss) earnings from discontinued operations					(1,782)		-		1,257		-		(525)
		Net earnings				45,749		130,918		248,315		(260,733)		164,249
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations					-		-		117,867		-		117,867
	Net earnings from discontinued operations					-		-		633		-		633
		Total net earnings attributable to noncontrolling interests				-		-		118,500		-		118,500
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	45,749	$	130,918	$	129,815	$	(260,733)	$	45,749
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax				$	47,531	$	130,918	$	129,191	$	(260,733)	$	46,907
	Discontinued operations, net of income tax					(1,782)		-		624		-		(1,158)
			Net earnings and comprehensive income attributable
				to AmSurg Corp. common shareholders	$	45,749	$	130,918	$	129,815	$	(260,733)	$	45,749

Condensed Consolidating Statement of Cash Flows - For the Nine Months Ended September 30, 2013 (In thousands)
			Parent		Guarantor		Non-Guarantor		Consolidating		Total
			Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Cash flows from operating activities:
		Net cash flows provided by (used in) operating activities	$	29,083	$	153,382	$	314,172	$	(247,704)	$	248,933
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions			-		(59,899)		-		444		(59,455)
	Acquisition of property and equipment			(3,264)		-		(17,447)		-		(20,711)
	Proceeds from sale of interests in surgery centers			-		151		-		-		151
	Other			107		-		-		-		107
		Net cash flows used in investing activities		(3,157)		(59,748)		(17,447)		444		(79,908)
Cash flows from financing activities:
	Proceeds from long-term borrowings			122,200		-		7,235		-		129,435
	Repayment on long-term borrowings			(141,403)		-		(10,273)		-		(151,676)
	Distributions to owners, including noncontrolling interests			-		(94,322)		(290,463)		247,704		(137,081)
	Changes in intercompany balances with affiliates, net			1,899		-		(1,899)		-		-
	Other financing activities, net			(11,620)		688		778		(444)		(10,598)
		Net cash flows provided by (used in) financing activities		(28,924)		(93,634)		(294,622)		247,260		(169,920)
Net (decrease) increase in cash and cash equivalents				(2,998)		-		2,103		-		(895)
Cash and cash equivalents, beginning of period				7,259		-		39,139		-		46,398
Cash and cash equivalents, end of period			$	4,261	$	-	$	41,242	$	-	$	45,503

Condensed Consolidating Statement of Cash Flows - For the Nine Months Ended September 30, 2012 (In thousands)
			Parent		Guarantor		Non-Guarantor		Consolidating		Total
			Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Cash flows from operating activities:
		Net cash flows provided by (used in) operating activities	$	57,102	$	155,233	$	299,416	$	(295,639)	$	216,112
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions			-		(16,165)		-		68		(16,097)
	Acquisition of property and equipment			(2,233)		-		(18,567)		-		(20,800)
	Other			-		-		-		-		-
		Net cash flows used in investing activities		(2,233)		(16,165)		(18,567)		68		(36,897)
Cash flows from financing activities:
	Proceeds from long-term borrowings			47,700		-		2,511		-		50,211
	Repayment on long-term borrowings			(102,700)		-		(8,439)		-		(111,139)
	Distributions to owners, including noncontrolling interests			-		(140,406)		(278,299)		295,639		(123,066)
	Changes in intercompany balances with affiliates, net			(1,435)		-		1,435		-		-
	Other financing activities, net			(2,097)		1,338		570		(68)		(257)
		Net cash flows provided by (used in) financing activities		(58,532)		(139,068)		(282,222)		295,571		(184,251)
Net decrease in cash and cash equivalents				(3,663)		-		(1,373)		-		(5,036)
Cash and cash equivalents, beginning of period				8,530		-		32,188		-		40,718
Cash and cash equivalents, end of period			$	4,867	$	-	$	30,815	$	-	$	35,682