Hospital Sisters HEALTH SYSTEM. Quarterly Unaudited Financial Statements June 30, 2015

Transcription

1 Hospital Sisters HEALTH SYSTEM Quarterly Unaudited Financial Statements June 30, 2015

2 Hospital Sisters Health System and Subsidiaries Springfield, Illinois Consolidated Balance Sheets UNAUDITED ASSETS CURRENT ASSETS Cash and cash equivalents Receivables: Patients' account, net Due from third party reimbursement programs Other Total receivables Current portion of assets whose use is limited/rest Inventories Prepaid expenses Total current assets As of June 30,2015 June 30, 2014 (Dollars in 0005) 140, , , ,652 3,104 4,887 34,064 38, , , , ,898 43,869 38,035 22,866 20, , ,074 Assets whose use is limited or restricted Property, plant and equipment,net Other assets TOTAL ASSETS LIABILITIES and NET ASSET CURRENT LIABILITIES Current installments of long-term debt Long-term debt subject to short-term remarketing agreements Current portion of estimated self-insurance liabilities Accounts payable Accrued liabilities Estimated payables under third-party programs Total current liabilities Long-term debt, excluding current installments Estimated self-insurance liabilities Deriviative Instruments Other non-current liabilities TOTAL LIABILITIES 1,785,891 1,749,958 1,314,783 1,327,878 69,808 73,545 4,021,205 3,916,455 26,565 18, , ,508 45,658 26, , , , ,617 62,476 60, , , , ,193 61,717 76,335 48,734 43, , ,171 1,534,792 1,385,953 Net assets: Unrestricted Temporarily restricted Permanently restriced Total net assets 2,434,840 2,479,350 25,754 26,695 25,819 24,457 2,486,413 2,530,502 4,021,205 3,916,455

3 Hospital Sisters Health System and Subsidiaries Consolidated Statements of Operation For the Twelve Months ended June 30, 2015 (Dollars in OOOs) UNAUDITED FY 2015 FY 2014 Net patient service revenue Provision for uncollectible accounts Net patient service revenue less provision Other revenues: Investment income Other operating revenue Total revenues Expenses: Salaries and wages Employee benefits Professional fees Supplies Depreciation Interest Other Total expenses Income from operations Nonoperating gains: Investment income Change in fair value of interest rate swaps Loss on early conversion of debt Revenues and gains in excess of expenses 2,205,566 2,078,556 {66,711} {98,003} 2,138,855 1,980, ,827 99, ,637 2,238,611 2,089, , , , ,917 99, , , , , ,683 13,668 8, , ,921 2,216,225 2,072,349 22,386 16,668 43, ,803 (5,682) (1,221 ) {9O?} 59, ,250

4 HOSPITAL SISTERS HEALTH SYSTEM AND SUBSIDIARIES Springfield, Illinois Consolidated Statements of Cash Flow For the Twelve Months ended June 30, 2015 (Dollars in thousands) UNAUDITED Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash from operating activities: Loss on conversion and early extinguishment of debt Reversal (recognition) of change in pension funded status Depreciation and amortization Provision for uncollectible accounts Change in net unrealized gain and losses on investments Net realized gains on sale of investments Change in the fair value of derivative instruments Changes in assets and liabilities: (44,089) , ,100 66,711 39,486 (65,345) 5,682 Patients' accounts receivable (97,182) Other receivables 4,463 Inventories (5,834) Prepaid expenses (1,988) Net amounts due to third-party reimbursement programs 3,673 Accounts payable and accrued liabilities 13,608 Estimated self-insurance liabilities and other noncurrent liabilities 6,294 Net cash (used in) provided by operating activities ,;;...:..=...;;~ 204,345 Cash flows from investing activities: Acquisition of property, plant, and equipment (158,005) Net change in investments (45,812) Change in other assets 2,830 Net cash used in investing activities (200,987) Cash flows from financing activities: Net change of long-term debt 14,506 Net cash provided by (used in) financing activities 14,506 Change in cash and cash equivalents 17,864 Cash and cash equivalents at beginning of year 122,197 Cash and cash equivalents at end of year 1,;",.,4;".;;0.:.,;,0;..,;6;..;,1_

5 HOSPITAL SISTERS SERVICES, INC. - OBLIGATED GROUP Sprinqfield. IllIno,s ConsoildaUnq Slalemenl of Operations Infonnation Year ended June Unaudiled (Dollars in Ihousands) Sacred Hospital St. Ellzabeth's SL Joseph's SI. MolY's St. Anthony's St. Joseph's St. Francis St.John s St. Mary's St. Joseph's Heart St. Mary's St. Vincent St. Nicholas SIsters Belleville, Breese. Decatur, Effingham. Highland. Litchfield. Springfield. Streator, Chippewa Fall Eau Claire. Green Bay. Green Bay, Sheboygan. Services, illinois IIlInol. illinois illinois illinois illinois illinois illinois Wisconsin Wisconsin Wisconsin Wisconsin Wisconsin Inc. Eliminations Total Net patient service revenues , ~~ ~ 'f':5'f Provision for uncollectible accounts ) P ~ ' ~ ) ~ ~ ~ lliL...ill.illL ~ (1.219) ~ ~ ~~ ~ Net patient service revenue less provisiof1 for uncollectl~e accounts Net assets released from restnctlons used for Dt>eraUons Olher 6,226 1,553 ~ ---1J1L ~ --2QL ~ ~ 1,366 ~ ~ ~ -kill... ~ TolaJ revenues ,967...lli.ill ~~ 472,993 ~ 70,235 ~ 125, ,388 ~ 3_1_4_ illL 2, E><oenses Salaries aod WaQes , ,474 Employee benefits Professional fees (3.318) Supplies Oepredaoon and amorllzabon Interest Olher 59,479 13,314 ~ ~ ~ ---11J!IL 130,708 ~ 16,912 ~ ~ 241,262 ~ 2_ ~ 673,767 Total expenses 173,792 47,584 ~..JQ!illL ~ ~ 478,020 ~ ~ ~ 446,~3 ~ 2_ illL 1,939,896 Income (loss 1 from operabons (14342) (5.027) ,349 NonoperabrlQ Income (loss 1 Investment income (462) CharlQe in fair value of interest rate swap (1) (387) 2 (898) (3) (2~O) (231) (41) (162) (1987) (338) (1187) (209) (5.682) Loss on conversion and earty extinqulshment of debt (53) (1 31 ~ ~~ ~ ~ ~ (30) ----.illl ~...-lilll --..illl Revenues in excess (deficient) of expenses ~ and losses S (14.350) ~ ~~~ ~ ~ 6,804 ~ ~ ==3='=8= ~

6 HOSPITAL SISTERS SERVICES, INC. - OBLIGATED GROUP Spnngfield, Illinois ConSGIldating Balance Sheet Inrormation June 30, 2015 Unaudited IDoUsrs in thousanda, Sacrad Hospital Sl Elizabeth's SL Jos.ph', SL Mary'. Sl Anthony'. SL Jos.ph'. St. Francia Sl John's SL Mary's SL Jos.ph'. Heart SL Mary's SL Vincent 51. Nicholas Sistars Benevllle, Br... Cecatur, Effingham, Highland, Lltchfleld, Springfield, Streator, Chippewa FaU., Eau Claire, Gr n Bay, GreenS.y. Sheboygan, Sarvlc, A ta illinois IIIlnol. ~ ~ ~ ~~ ~ Wlsconaln Wlsconaln Wisconsin Wlsconaln ~ ~ Eliminations ~ Current assots Cash and cash equivalents 3,35t 4, , , , Rocoivabloe Patients' accounts, less auowanco for uncouectibie Decou" 34,530 9, , , ,S Due from third-party rehnbursemenl programs (372) OthOl" 4,052 B9 ~ ~ ~ ~~ ~~ ~ ----.J!QL ~ ~ ~ Total rocetvables 39,843 9, , , wj 9, , ,238 (1.498) Curront portion or asseta whose use IS limited or roatrictod ,101 6, , , , , lso.641 Invontorios , SO 3SO ,219 PrepaId expenses 1, !!L '_'9_ ----1J..1L --.nl ---21l!L ~ ----.lil Total current assets ,824 41, , , ;4, s5.917 ~ II ~ 98) ~ Assets whose use IS limited or festncted, net of curront portion 6, ,299 3,025 35, , , ,360 49,376 1,764,822 Property, plant. and equipment, not ,541 92, , , , , Otheranots 5, '_7_'_ _ ~ ~~ ~ ----1l!L ~----~ 128, ,137 ~ ~ 68,189 ~ 786,516 ~ '5','03 ~~ ~ 125,588 ~ ~ 3, Liabilities and N.t Ass.ts Current liabilities. Current Installments of long-term dobt 1, , , , , LonlQtorm-debt subject to short-torm rema~otif1q arreeman!s , ,108 61,586 3, , , Accounts payable , ,806 1,123 14, , ,055 20, (1498) Accruod liablliues , ,496 8,137 3, ,347 4, Esbmated payables under thlrd-partv reimbursoment proqram 3,831 6,139 ~ ~ ~ ~~ -.JML. 8SO ~ 5 2_'_' 2_'_ ~ Total curront liabuulaa 33.3SO 12, ' 46, , ) 430,659 l ong-tdml debt, excluding current inalallmonts 111, ,597 8, ,8SO Oenvallvo inetrumants 1 2, , , Accruod bonafit liablhty , ,547 59,796 11, , , Other nooourront liabll,ties 8, !..l!ql M!L~~ ~ ~ 68_' 3_'6_ ~ ~ Tolaillabilitios 179, ~ ~ ~ ~ 46,373 ~~ ~ ~ ~ 1, Not assels: Unreslnctod (57.318) ,457 (0020) 34,568 3SO,775 40, S T amporanly restricted 6, ,078 2,989 2,074 25, , , ,378 71,688 Permanently restricted 134 ~ ~~ ~~~~ ~ Total nat assets ISO,'40) ~ 353, &1L ~ , ,480 ~ ~ ----L!2L ,901 lso,137 ~ 423,554 ~ ~ 786,516 ~ 151,103 ~ 200, , ,588 ~ ~ 3,623,325

7 Hospital Sisters Services, Inc. Obligated Group Summary of Certain Operating Statistics For the Twelve Months Ended June 30, 2015 Unaudited Number of Licensed Beds Number of Staffed Beds Admissions Average Length of Stay Average Daily Census Jun-15 2,785 1,922 78, Jun-14 2,918 1,951 77, Patient Days Outpatient Registrations Total Patients 355,881 1,543,164 1,899, ,034 1,466,474 1,819,508 Inpatient Surgical Cases 18,453 Outpatient Surgical Cases 50, '--- Total Surgeries 68,626 Emergency Room Visits 320,820 19,258 42,478 61, ,933

8 HSSI Liquidity Covenant Calculation as of June 30, 2015 (Dollars in thousands) 06/30/15 Cash and cash equivalents Add: By the board for capital improvements Current portion of assets whose use is limited/rest Assets whose use is limited or restricted Less: 90, ,641 1,668,321 (A) Total Unrestricted cash and Investments 1,909,109 Total operating expenses Less: Depreciation 1,939,896 (113,131) (B) Operating expenses for period 1,826,765 Number of Days for period from (C) July 1 thru June (0) Daily operating expenses 5,005 (B)/(C) Days of Operating expenses on hand 381 (A)/(O)

9 HOSPITAL SISTERS SERVICES, INC. COMPUTATION OF DEBT SERVICE COVERAGE RATIO QUARTER ENDED June 30,2015 UNAUDITED Income available for debt service Revenue and Gains in excess of expenses and losses ADD Unrealized Losses/(Gains) includes SWAPS Depreciation and Gains/Losses on Asset Dispositions Interest Expense 117,879 39, ,131 14,757 Income available for debt service 285,184 Principal Paid Interest Expense 21,970 14,757 Annual Debt Service Requirement 36,727 Debt Service Coverage Ratio 1, Maximum Annual Debt Service Requirement 46,385 Historical Pro Forma Debt Service Coverage Ratio based on maximum annual debt service (Annualized) 8.1