Meridian Hospitals Corporation. Financial Statements As of and for the Six Months Ended June 30, 2015 and 2014 (UNAUDITED)

Transcription

1 Financial Statements As of and for the Six Months Ended June 30, 2015 and 2014 (UNAUDITED)

2 Index June 30, 2015 and December 31, 2014 Page(s) Balance Sheets Statements of Changes in Net Assets....8 Statements of Cash Flows...9

3 Balance Sheets June 30, 2015 and December 31, 2014 Assets Current assets Cash and cash equivalents $ 229,112 $ 240,177 Assets limited as to use and short-term investments 318, ,821 Patient accounts receivable, less allowance for uncollectible accounts of $50,843 in 2015 and $49,516 in , ,811 Due from affiliates, net 6,376 5,305 Other current assets 51,819 38,108 Total current assets 736, ,222 Assets limited as to use and investments, noncurrent portion Under Board of Trustee designation and investments 450, ,843 Property, plant and equipment, net 743, ,167 Other assets 68,827 70,052 Interest in net assets of foundations 75,611 67,607 Due from affiliates, net 8,755 8,745 Total assets $ 2,084,129 $ 2,010,636 Liabilities and Net Assets Current liabilities Current maturities of long-term debt and capital lease obligations $ 16,304 $ 16,440 Accounts payable and accrued expenses 163, ,916 Estimated amounts due to third party payors 38,286 33,763 Due to affiliates, net 5,965 3,081 Other current liabilities 35,452 44,659 Total current liabilities 259, ,859 Long-term debt and capital lease obligations, less current maturities 518, ,578 Accrued pension liability 48,683 56,066 Other liabilities 232, ,863 Total liabilities 1,059,394 1,066,366 Net assets Unrestricted 949, ,636 Temporarily restricted 53,789 45,807 Permanently restricted 21,849 21,827 Total net assets 1,024, ,270 Total liabilities and net assets $ 2,084,129 $ 2,010,636 Page 1

4 Patient service revenue, net of contractual allowances and discounts $ 757,463 $ 678,478 Provision for bad debts 32,504 36,488 Net patient service revenue, less provision for bad debts $ 724,959 $ 641,990 Other revenue 23,028 25,259 Net assets released from restriction used for operating activities Total operating revenues 748, ,672 Salaries, wages and contracted labor 270, ,049 Physician salaries and fees 22,148 20,052 Employee benefits 72,093 69,080 Supplies and other expenses 275, ,311 Depreciation and amortization 30,627 29,893 Interest 14,789 15,400 Total operating expenses 685, ,785 Income from operations 63,013 25,887 Nonoperating revenues (losses) Investment income 4,385 12,968 Unrealized gains (losses) on derivative instruments 8,650 (12,062) Excess of revenue over expenses 76,048 26,793 Change in net unrealized gains on investments 4,409 2,880 Net assets released from restriction for capital acquisition 2,500 3,896 Increase in unrestricted net assets before other adjustments 82,957 33,569 Equity transfers to affiliates (10,496) (9,234) Other changes in unrestricted net assets Increase in unrestricted net assets $ 72,461 $ 24,474 Page 2

5 Jersey Shore University Medical Center Patient service revenue, net of contractual allowances and discounts $ 331,227 $ 302,276 Provision for bad debts 12,534 15,200 Net patient service revenue, less provision for bad debts $ 318,693 $ 287,076 Other revenue 11,254 12,295 Net assets released from restriction used for operating activities Total operating revenues 330, ,635 Salaries, wages and contracted labor 112, ,139 Physician salaries and fees 9,971 8,763 Employee benefits 29,733 28,902 Supplies and other expenses 129, ,630 Depreciation and amortization 12,974 13,113 Interest 8,358 8,596 Total operating expenses 303, ,143 Income from operations $ 27,360 $ 15,492 Page 3

6 Ocean Medical Center Patient service revenue, net of contractual allowances and discounts $ 143,480 $ 127,480 Provision for bad debts 6,352 7,490 Net patient service revenue, less provision for bad debts $ 137,128 $ 119,990 Other revenue 5,130 5,469 Net assets released from restriction used for operating activities 50 9 Total operating revenues 142, ,468 Salaries, wages and contracted labor 53,764 49,639 Physician salaries and fees 2,904 2,961 Employee benefits 13,675 12,843 Supplies and other expenses 47,996 43,765 Depreciation and amortization 6,189 5,790 Interest 2,608 2,742 Total operating expenses 127, ,740 Income from operations $ 15,172 $ 7,728 Page 4

7 Riverview Medical Center Patient service revenue, net of contractual allowances and discounts $ 132,502 $ 117,905 Provision for bad debts 5,306 4,797 Net patient service revenue, less provision for bad debts $ 127,196 $ 113,108 Other revenue 3,581 3,532 Net assets released from restriction used for operating activities Total operating revenues 130, ,721 Salaries, wages and contracted labor 49,215 47,648 Physician salaries and fees 4,191 3,557 Employee benefits 13,047 12,574 Supplies and other expenses 46,140 43,816 Depreciation and amortization 5,518 5,440 Interest 2,491 2,662 Total operating expenses 120, ,697 Income from operations $ 10,278 $ 1,024 Page 5

8 Southern Ocean Medical Center Patient service revenue, net of contractual allowances and discounts $ 76,959 $ 66,085 Provision for bad debts 3,513 4,097 Net patient service revenue, less provision for bad debts $ 73,446 $ 61,988 Other revenue 2,040 2,337 Net assets released from restriction used for operating activities Total operating revenues 75,511 64,338 Salaries, wages and contracted labor 27,388 25,177 Physician salaries and fees 2,693 2,735 Employee benefits 7,596 7,125 Supplies and other expenses 29,181 26,061 Depreciation and amortization 3,164 3,046 Interest Total operating expenses 70,737 64,900 Income from operations $ 4,774 $ (562) Page 6

9 Bayshore Community Hospital Patient service revenue, net of contractual allowances and discounts $ 73,295 $ 64,732 Provision for bad debts 4,799 4,904 Net patient service revenue, less provision for bad debts $ 68,496 $ 59,828 Other revenue 1,023 1,626 Net assets released from restriction used for operating activities Total operating revenues 69,619 61,510 Salaries, wages and contracted labor 27,253 25,446 Physician salaries and fees 2,389 2,036 Employee benefits 8,042 7,636 Supplies and other expenses 23,107 21,039 Depreciation and amortization 2,782 2,504 Interest Total operating expenses 64,190 59,305 Income from operations $ 5,429 $ 2,205 Page 7

10 Combined Statements of Changes in Net Assets June 30, 2015 and December 31, 2014 Temporarily Permanently Total Unrestricted Restricted Restricted Net Assets Balance at December 31, 2013 $ 803,037 $ 50,144 $ 21,447 $ 874,628 Excess of revenues over expenses 100, ,102 Change in net unrealized gains on investments Increase in interest in affiliated fund raising organizations - 7, ,033 Net assets released from restriction for capital acquisition 9,132 (9,132) - - Net assets released from restriction used for operating activities - (2,858) - (2,858) Equity transfers to affiliates (8,484) (8,484) Other changes in pension benefits and plan assets (31,743) - - (31,743) Other changes in unrestricted net assets 4,251 4,251 Increase in net assets 73,599 (4,337) ,642 Balance at December 31, 2014 $ 876,636 $ 45,807 $ 21,827 $ 944,270 Excess of revenue over expenses 76, ,048 Change in net unrealized gains on investments 4, ,409 Increase in interest in affiliated fund raising organizations - 11, ,328 Net assets released from restriction for capital acquisition 2,500 (2,500) - - Net assets released from restriction used for operating activities - (824) - (824) Equity transfers to affiliates (10,496) (10,496) Increase in net assets 72,461 7, ,465 Balance at June 30, 2015 $ 949,097 $ 53,789 $ 21,849 $ 1,024,735 Page 8

11 Statements of Cash Flows Six Months Ended June 30, 2015 and Year Ended December 31, 2014 Cash flows from operating activities Change in net assets $ 80,465 $ 69,642 Adjustments to reconcile change in net assets to net cash provided by operating activities Gain on disposal of assets - (48) Provision for bad debts 32,504 70,594 Depreciation and amortization 30,627 60,336 Amortization of original issue premium (837) (1,832) Change in net realized and unrealized gains on investments (4,409) (15,410) Unrealized (gains) losses on derivative instruments (8,650) 27,675 Unrealized loss on trading securities 23 1,615 Restricted contributions for capital acquisitions (2,500) (9,132) Other changes in pension benefits and plan assets - 31,743 Equity transfers to affiliates, net 10,496 8,484 Changes in assets and liabilities Increase in net patient accounts receivable (35,362) (80,659) (Increase) decrease in other assets (21,775) 878 Increase in accounts payable and accrued expenses 11,529 14,102 Increase in estimated amounts due to third party payors 4,523 15,366 (Decrease) increase in other liabilities (13,250) 83 Net cash provided by operating activities 83, ,437 Cash flows from investing activities Purchases of property, plant and equipment (26,206) (89,149) Proceeds from sale of property and equipment - 50 Changes in assets limited as to use and investments (59,960) (34,850) Net cash used in investing activities (86,166) (123,949) Cash flows from financing activities Principal payments on long-term debt and capital lease obligations (287) (16,885) Restricted contributions for capital acquisitions 2,500 9,132 Financing costs - (15) Equity transfers to affiliates, net (10,496) (8,484) Net cash used in financing activities (8,283) (16,252) (Decrease) increase in cash and cash equivalents (11,065) 53,236 Cash and cash equivalents Beginning of year 240, ,941 End of year $ 229,112 $ 240,177 Supplemental information Cash paid for interest $ 14,802 $ 34,150 Construction and retainage payable (9,993) (6,067) - - Page 9