Guarantor

3 Months Ended

Mar. 31, 2014

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

(14) Financial Information for the Company and Its Subsidiaries

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 - March 31, 2014 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Assets
Current assets:
	Cash and cash equivalents			$	5,562	$	-	$	41,554	$	-	$	47,116
	Accounts receivable, net				-		-		106,209		-		106,209
	Supplies inventory				52		-		18,381		-		18,433
	Deferred income taxes				1,026		-		-		-		1,026
	Prepaid and other current assets				28,618		-		13,350		(4,817)		37,151
		Total current assets			35,258		-		179,494		(4,817)		209,935
Property and equipment, net					10,129		-		158,877		-		169,006
Investments in unconsolidated affiliates and other					1,489,635		1,458,185		-		(2,928,336)		19,484
Goodwill and intangible assets, net					20,185		-		909		1,764,622		1,785,716
			Total assets	$	1,555,207	$	1,458,185	$	339,280	$	(1,168,531)	$	2,184,141
Liabilities and Equity
Current liabilities:
	Current portion of long-term debt			$	10,714	$	-	$	9,571	$	-	$	20,285
	Accounts payable				1,014		-		28,972		(4,627)		25,359
	Accrued liabilities				24,092		-		14,703		(190)		38,605
		Total current liabilities			35,820		-		53,246		(4,817)		84,249
Long-term debt					543,750		-		52,009		(30,822)		564,937
Deferred income taxes					185,882		-		-		-		185,882
Other long-term liabilities					7,342		-		18,411		-		25,753
Noncontrolling interests – redeemable					-		-		63,691		113,992		177,683
Equity:
		Total AmSurg Corp. equity			782,413		1,458,185		113,448		(1,571,633)		782,413
		Noncontrolling interests – non-redeemable			-		-		38,475		324,749		363,224
		Total equity			782,413		1,458,185		151,923		(1,246,884)		1,145,637
			Total liabilities and equity	$	1,555,207	$	1,458,185	$	339,280	$	(1,168,531)	$	2,184,141

Condensed Consolidating Balance Sheet - December 31, 2013 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Assets
Current assets:
	Cash and cash equivalents			$	6,710	$	-	$	44,130	$	-	$	50,840
	Accounts receivable, net				-		-		105,072		-		105,072
	Supplies inventory				33		-		18,381		-		18,414
	Deferred income taxes				3,097		-		-		-		3,097
	Prepaid and other current assets				23,993		-		13,971		(4,362)		33,602
		Total current assets			33,833		-		181,554		(4,362)		211,025
Property and equipment, net					9,829		-		160,066		-		169,895
Investments in unconsolidated affiliates and other					1,484,974		1,453,596		-		(2,922,178)		16,392
Goodwill and intangible assets, net					20,684		-		978		1,758,970		1,780,632
			Total assets	$	1,549,320	$	1,453,596	$	342,598	$	(1,167,570)	$	2,177,944
Liabilities and Equity
Current liabilities:
	Current portion of long-term debt			$	10,714	$	-	$	10,130	$	-	$	20,844
	Accounts payable				1,972		-		29,487		(3,958)		27,501
	Accrued liabilities				27,419		-		14,510		(404)		41,525
		Total current liabilities			40,105		-		54,127		(4,362)		89,870
Long-term debt					561,429		-		53,246		(31,377)		583,298
Deferred income taxes					176,020		-		-		-		176,020
Other long-term liabilities					7,569		-		17,934		-		25,503
Noncontrolling interests – redeemable					-		-		63,704		113,993		177,697
Equity:
		Total AmSurg Corp. equity			764,197		1,453,596		114,671		(1,568,267)		764,197
		Noncontrolling interests – non-redeemable			-		-		38,916		322,443		361,359
		Total equity			764,197		1,453,596		153,587		(1,245,824)		1,125,556
			Total liabilities and equity	$	1,549,320	$	1,453,596	$	342,598	$	(1,167,570)	$	2,177,944

Condensed Consolidating Statement of Earnings and Comprehensive Income - For the Three Months Ended March 31, 2014 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues				$	6,127	$	-	$	261,589	$	(4,609)	$	263,107
Operating expenses:
	Salaries and benefits				14,485		-		68,830		(121)		83,194
	Supply cost				-		-		38,720		-		38,720
	Other operating expenses				4,166		-		55,591		(4,488)		55,269
	Depreciation and amortization				825		-		7,549		-		8,374
		Total operating expenses			19,476		-		170,690		(4,609)		185,557
Gain on deconsolidation					2,045		2,045		-		(2,045)		2,045
Equity in earnings of unconsolidated affiliates					48,052		48,052		-		(95,340)		764
		Operating income			36,748		50,097		90,899		(97,385)		80,359
Interest expense					6,452		-		511		-		6,963
	Earnings from continuing operations before income taxes				30,296		50,097		90,388		(97,385)		73,396
Income tax expense					12,704		-		353		-		13,057
	Net earnings from continuing operations				17,592		50,097		90,035		(97,385)		60,339
	Net earnings (loss) from discontinued operations				(397)		-		172		-		(225)
		Net earnings and comprehensive income			17,195		50,097		90,207		(97,385)		60,114
Less net earnings and comprehensive income attributable to noncontrolling interests:
	Net earnings from continuing operations				-		-		42,835		-		42,835
	Net earnings from discontinued operations				-		-		84		-		84
		Total net earnings and comprehensive income attributable to noncontrolling interests			-		-		42,919		-		42,919
			Net earnings and comprehensive income attributable to AmSurg Corp. common shareholders	$	17,195	$	50,097	$	47,288	$	(97,385)	$	17,195
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax			$	17,592	$	50,097	$	47,200	$	(97,385)	$	17,504
	Discontinued operations, net of income tax				(397)		-		88		-		(309)
			Net earnings and comprehensive income attributable to AmSurg Corp. common shareholders	$	17,195	$	50,097	$	47,288	$	(97,385)	$	17,195

Condensed Consolidating Statement of Earnings and Comprehensive Income - For the Three Months Ended March 31, 2013 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues				$	5,716	$	-	$	256,711	$	(4,238)	$	258,189
Operating expenses:
	Salaries and benefits				15,421		-		65,650		(113)		80,958
	Supply cost				-		-		37,213		-		37,213
	Other operating expenses				5,060		-		51,792		(4,125)		52,727
	Depreciation and amortization				772		-		7,236		-		8,008
		Total operating expenses			21,253		-		161,891		(4,238)		178,906
Gain on deconsolidation					2,237		2,237		-		(2,237)		2,237
Equity in earnings of unconsolidated affiliates					49,955		49,955		-		(99,508)		402
		Operating income			36,655		52,192		94,820		(101,745)		81,922
Interest expense					6,923		-		619		-		7,542
	Earnings from continuing operations before income taxes				29,732		52,192		94,201		(101,745)		74,380
Income tax expense					11,877		-		392		-		12,269
	Net earnings from continuing operations				17,855		52,192		93,809		(101,745)		62,111
	Net earnings (loss) from discontinued operations				(44)		-		206		-		162
		Net earnings and comprehensive income			17,811		52,192		94,015		(101,745)		62,273
Less net earnings and comprehensive income attributable to noncontrolling interests:
	Net earnings from continuing operations				-		-		44,361		-		44,361
	Net earnings from discontinued operations				-		-		101		-		101
		Total net earnings and comprehensive income attributable to noncontrolling interests			-		-		44,462		-		44,462
			Net earnings and comprehensive income attributable to AmSurg Corp. common shareholders	$	17,811	$	52,192	$	49,553	$	(101,745)	$	17,811
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax			$	17,855	$	52,192	$	49,448	$	(101,745)	$	17,750
	Discontinued operations, net of income tax				(44)		-		105		-		61
			Net earnings and comprehensive income attributable to AmSurg Corp. common shareholders	$	17,811	$	52,192	$	49,553	$	(101,745)	$	17,811

Condensed Consolidating Statement of Cash Flows - For the Three Months Ended March 31, 2014 (In thousands)
			Parent		Guarantor		Non-Guarantor		Consolidating		Total
			Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Cash flows from operating activities:
		Net cash flows provided by operating activities	$	18,482	$	48,096	$	96,257	$	(93,016)	$	69,819
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions			-		(5,082)		-		44		(5,038)
	Acquisition of property and equipment			(1,237)		-		(5,801)		-		(7,038)
	Proceeds from sale of interests in surgery centers			-		1,111		-		-		1,111
	Other			(629)		211		-		-		(418)
		Net cash flows used in investing activities		(1,866)		(3,760)		(5,801)		44		(11,383)
Cash flows from financing activities:
	Proceeds from long-term borrowings			30,000		-		1,945		-		31,945
	Repayment on long-term borrowings			(47,679)		-		(3,174)		-		(50,853)
	Distributions to owners, including noncontrolling interests			-		(44,920)		(91,290)		93,016		(43,194)
	Changes in intercompany balances with affiliates, net			556		-		(556)		-		-
	Other financing activities, net			(641)		584		43		(44)		(58)
		Net cash flows used in financing activities		(17,764)		(44,336)		(93,032)		92,972		(62,160)
Net decrease in cash and cash equivalents				(1,148)		-		(2,576)		-		(3,724)
Cash and cash equivalents, beginning of period				6,710		-		44,130		-		50,840
Cash and cash equivalents, end of period			$	5,562	$	-	$	41,554	$	-	$	47,116

Condensed Consolidating Statement of Cash Flows - For the Three Months Ended March 31, 2013 (In thousands)
			Parent		Guarantor		Non-Guarantor		Consolidating		Total
			Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Cash flows from operating activities:
		Net cash flows provided by operating activities	$	23,940	$	49,577	$	99,411	$	(99,063)	$	73,865
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions			-		(242)		-		(10)		(252)
	Acquisition of property and equipment			(853)		-		(5,257)		-		(6,110)
		Net cash flows used in investing activities		(853)		(242)		(5,257)		(10)		(6,362)
Cash flows from financing activities:
	Proceeds from long-term borrowings			29,700		-		1,170		-		30,870
	Repayment on long-term borrowings			(45,024)		-		(3,187)		-		(48,211)
	Distributions to owners, including noncontrolling interests			-		(49,486)		(93,491)		99,063		(43,914)
	Changes in intercompany balances with affiliates, net			533		-		(533)		-		-
	Other financing activities, net			(10,792)		151		398		10		(10,233)
		Net cash flows used in financing activities		(25,583)		(49,335)		(95,643)		99,073		(71,488)
Net decrease in cash and cash equivalents				(2,496)		-		(1,489)		-		(3,985)
Cash and cash equivalents, beginning of period				7,259		-		39,139		-		46,398
Cash and cash equivalents, end of period			$	4,763	$	-	$	37,650	$	-	$	42,413