The Reading Hospital and Controlled Entities Consolidated Balance Sheet - Assets (Dollars in Thousands)

Transcription

1 Consolidated Balance Sheet - Assets (Dollars in Thousands) Current assets Cash and cash equivalents Patient accounts receivable, less allowances Other receivables Receivable from affiliates Inventories Prepaid expenses and other current assets Assets whose use is limited - required for current liabilities Self-insurance funding arrangements Revenue bond indentures - debt service Total current assets Assets whose use is limited Self-insurance funding arrangements Revenue bond indentures - debt service Revenue bond indentures - capital improvements By board Total assets whose use is limited, net of current requirements Investments permanently restricted as to use Temporarily restricted funds Property, plant and equipment, net Deferred financing expense Deferred compensation Other assets Total assets

2 Consolidated Balance Sheet - Liabilities and Net Assets (Dollars in Thousands) Current liabilities Current installments of long-term debt Bonds Backed by Self Liquidity Current portion of estimated self-insurance costs Accounts payable Current portion of accrued pension and postretirement liabilities Estimated third-party settlements Accrued expenses Accrued vacation Advance from third-party payor Other liabilities Total current liabilities Long-term debt, net of current portion and unamortized discount Accrued pension costs, net of current portion Deferred revenue Deferred compensation Gift Annuities Estimated self-insurance costs, net of current portion Swap contract Total liabilities Net assets Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets

3 Net patient service revenue Other, Total revenues Expenses: Salaries and benefits Supplies Provision for uncollectible accounts Utilities Interest expense (income) Depreciation and amortization Other Total expenses (income) Income (loss) from operations Consolidated Statement of Operations (Dollars in Thousands) For the twelve For the twelve months ended months ended Nonoperating gains (losses) 34,028 18,168 Excess (deficiency) of revenue, gains and other support over expenses $ 79,941 $ 44,590 Net assets released from restrictions Change - in unrealized (losses) gains on investments Change in pension liability 24,756 (49,980) Increase (Decrease) in unrestricted net assets 141,555 17,600

4 Consolidated Statement of Cash Flow Dollars in Thousands For the Fiscal Year Ended June 30,2011 (Unaudited) Cash flows from operating activities and gains: Change In net assets 144,895 Adjustments to reconcile change in net assets to net cash provided by operating activities and gains: Change In fair value of interest rate swaps 157 Change in unrealized gain on investments (32,594) Change in pension liability (24,676) Change in deferred revenue 172 Depreciation and amortization 64,459 Provision for uncoliectible accounts 40,580 (Gain) loss on disposal of fixed assets 55 Realized gains on investments (32,796) Equity in (income) loss of affiliate (992) Restricted contributions and investment income received (120) Change in cash due tochanges in operatingassets & liabilities: Receivables from patients and others (34,685) Receivables from affiliates (645) Inventories (7,499) Prepaid expenses and other current assets 2,478 Deferred compensation 605 Accounts payable and accrued expenses 6,813 Net cash provided by operating activities and gains 126,207 Cash flows from investing activities: Acquisition of property, plant & equipment (35,155) Proceeds from sale of property, plant & equipment 110 Purchases and sales from assets whose use is limited (29,019) Net cash used in investing activities (64,064) Cash flow from financing activities: Restricted contributions and investment income received 120 Extinguishment of debt 0 New Issuance 0 Increase in deferred financing costs 0 Payments of long-term debt (13,950) Increase in gift annuities (87) Net cash used in financing activities (13,917) Net change in cash and cash equivalents 48,226 Cash and cash equivalents at beginning of period 105,485 Cash and cash equlvalents at end of period 153,711

5 Consolidated Statement of Changes in Net Assets Dollars in Thousands For the Fiscal Year Ended June 30,2011 (Unaudited) Unrestricted Net Assets Excess (deficit) of revenues, gains, and other support over expenses Net assets released from restrictions Change in unrealized (losses) gains on investments Change in pension liability lncrease (Decrease) in unrestricted net assets Temporarily Restricted Net Assets Contributions Net assets released from restrictions for fixed assets Net assets released from restrictions for operations lncrease (Decrease) in temporarily restricted net assets Permanently Restricted Net Assets Contributions Net realized and unrealized losses on investments Net assets released from restriction lncrease (Decrease) in permanently restricted net assets Change in Net Assets Net Assets at beginning of year Net Assets at end of year

6 Consolidated Balance Sheet June 30,2011 (Dollars in mousandt) Consolid Obligated Cons01 Hospital and and Gmup and Contmlied Elim Obligated Elim Entities Parent Hospital Highlands Entries Gmup RPS TRHMG Enbies Consolidated current assets Cash and cash equivalents Patient accounts receivable, less allowance far Bad Debt Other rrceivables Receivable from aftiliites Inventories Prepaid expenses and omer current assets Assets whose use is limited - required for current liabilities Self-insurance funding arrangements Revenue bond indentures - debt service Total current assets Assets whose use is limited Self-insurance hrnding arrangements Revenue bond indentures - debt sewice Revenue bond indentures - capital improvements By board Total assets whose use is limed. net of current requirements investments penanenvy resbicled as to use Temporarily resbicted funds Long-term receivables from amiiates Property, plant and equipment net Deferred financing expense Deferred compensation Other assets Total assets TAB I - PAGE 6

7 Consolidated Balance Sheet June 30,2011 (Dollarr inmourands, Consolid Obligated Consolidating Hospital and and Gmup and Conmlled Elim Obligated Eliminating Entities Parent Hospital Highlands Enthe?, Gmup RPS TRHMG Emes Consolidated Current liabilities Current installments of long-term debt Bonds Backed by SeK-Liquidity Current installments of long-term MUated payables Current portion of pension cost5 (SEW) Current portion of estimated seif-insurance msu Acwunts payabie Estimated third-party EetUemd Accrued expenses Accrued vacation Advance from third-pany payar Other llaboies Total surrem liabilities Long-term debt, net of current pation and unamonwd discount Long-term affiliates payables, net of current ponian Accrued pension costs, net of current poition Deferred mmpensation Gii Annuities Deferred Revenue Estimated self-insurance msu, net of current portion Swap mntraa Total liabilities Net asseb UnreStncted Tempwarily restricted Permanmiy restncfed Total net assets Total liabilities and net assets TAB 1 -PAGE 7

8 Consolidated Statement of Revenue and Expenses For the Fiscal Year Ended June 30,2011 (Dollars in Thousands) Consolid Consolld TRH & and and Controlled Elim Obligated Elim Entities Parent Hospital Highlands Entries Group RPS TRHMG Entries Consolid Unrestricted revenues Net patient service revenue Gain (loss) on disposal of fixed assets Other Total revenues Expenses Labor and benefb Supplies Provision for uncollectible accounts Utilities Interest expense (income) Depreciation and amortization Other Total expenses (income) Income (loss) from operations Nonoperating gains (losses) Investment income Unrestricted donations and bequests Other income (losses) Realized and unrealized gain (loss) on interest rate swaps Nonoperating gains, net Excess (deficiency) of revenue, gains and other support over expenses Operating Margin TAB 1 -PAGE 5

9 Utilization Statistics For the twelve For the twelve months ended months ended 6/30/2011 6/30/2010 Number of Beds in Service Acute Care Discharges Psych, Rehab, and Skilled Discharges Total Discharges Acute Care IP Days Psych, Rehab, and Skilled Days Total IP Days Acute Care Average Length of Stay Emegency Department Visits Surgical Cases Hospital Payer Mix (Based on gross charges) Medicare Medicaid Other ,524 25,902 3,729 3,519 30,253 29, , ,256 45,604 41, , , , ,110 19,154 18, % 46.4% 16.6% 14.5% 38.0% 39.1%

10 Schedule I to Compliance Certificate Compliance Calculations for Standby Bond Purchase Agreement dated as of February 1,2009 subsequently replaced with a Purchasers Agreement dated as of February 1,2010 Calculations as ofjune 30,2011 (Dollars in 000s) Obligated Conrolldated A. Days' Cash on Hand Ratio (Section 7.26(aN 1. Sum of cash, cash equivalents and marketable securities $ 1,010,454 $ 1,010, Line Al times ,815, ,718, Total operating expenses (excluding depreciation and amortization, noncash expenses relating to uncollectible acwut~fs and expenses paid or payable 6om restricted funds) incurred during the 12-month period ending on such date of calculation 972, , Quotient oflinea2 divided by Line A3 (Days Cash on Hand) If the longterm unedianced debt rating assigned to any Debt of the Obligated Group is greater than or equal to "Af' (or its equivalent) by S&P, "A+" (or its equivalent) by Fitch and "A!" (or its equivalent) by Moody's, then Line A4 shall not be less than The Obligated Group is in compliance (yes, no or NA) - Yes - Yes 7. If the long-tern unenhanced debt rating assigned to any Debt of the Obligated Group is reduced below "A+" (or its equivalent) by S&P, "A+" (or its equivalent) by Fitch or "Al" (or its equivalent) by Moody's, then Line A4 shall not be less than The Obligated Group is in compliance (yes, no or NA) - Yes - Yes *To be tested on each June 30 anddecember 31 *In calculaling Days' Cash on Hand. the Members (a) mayinolude cash, oash equivalenfs and markctsble securities constituting Board-designatedfunds of the Obligated Group that arenot reshiotd by the donor, by conhact, by oourtorder or by governmental restrictions as to use, and (b) may not include any ponion of cash, cash equivalents or marketable securities of the Obligated Group that have been derived hm the proceeds of any loan, line of credit, or other borrowing of money that canstihltes Jndebtedness. B. Lone-Tern Debt Service Coverage Ratio (Section 7.26(bN 1. Income Available for Debt Service $ 220, , Maximum Annual Debt Service 39,000 1 I 39, Ratio ofline B1 to B * 4. Line B3 must not be less than The Obligated Group is in compliance (yes or no) yes - YES *To be tested on each Marc June 30. September 30 anddecember 31 for the immediately preceding wlve nnonlh~ C. Debt to Cavitalization Ratio (Section 7.26(c)1 1. Debt $ 619, , UnrestrictedNet Assets (excluding all obligations due from affiliates of 874, , Sum of Line C1 and C2,,,, 4. Quotient of Line C1 divided C3 expressed as a percentage 42% 5. Line C4 must not be greater than 55% 6. The Borrower is in compliance (yes or no) - Yes - Yes 'To be tested on each March 31, June 30, September 30 and December31 D. Cushion Ratio (Section 5.04) 1999 Indenture 1. Sum of cash, cash equivalents and marketable securities $ 1,010,454 $ 1,01O,L88 2. Maximum Annual Debt Service 39,000 39, Ratio ofline Dl to D Line D3 must not be less than 1.5 +[ I 6. The Borrower is in compliance (yes or no) yes - Yes *To be tested on eaoh June 30 and Decembcr 31