October 29, 2013 Pursuant to Section 414(A) of the Master Trust Indenture between The Methodist Medical Center of Illinois and The Bank of New York Mellon Trust Company, N.A., dated as of May 1, 2011, as amended by the First Supplemental Master Trustee Indenture, dated as of May 1, 2011, the undersigned hereby submits unaudited financial statements, dated September 30, 2013, for The Methodist Medical Center of Illinois. I certify that the aforementioned financial statements were taken from the records and present fairly the financial position, the results of its operations and changes in financial position of The Methodist Medical Center of Illinois. Sincerely, Robert A. Quin Vice President of Finance & CFO Enclosure 221 Northeast Glen Oak Avenue Peoria, Illinois 61636-0002 Phone: 309-672-5522 MyMethodist.net
METHODIST MEDICAL CENTER OF ILLINOIS QUARTERLY FINANCIAL STATEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 2013
Balance Sheet (in thousands) September 30, December 31, 2013 2012 ASSETS (unaudited) (audited) Current Assets Cash and Cash Equivalents $ 38,279 $ 27,285 Short-term investments 410 410 Patient accounts receiveable, less estimated uncollectibles 41,430 55,875 Other Receivables 4,459 4,695 Prepaid Expenses 4,369 2,938 Inventories 3,693 3,807 Due From Affiliates 4,891 4,482 Total Current Assets 97,531 99,495 Assets Limited as to Use, Noncurrent Internally designated 3,930 3,701 Total Assets Limited as to Use, Noncurrent 3,930 3,701 Property, Plant and Equipment, Net 161,816 166,669 Other Assets Investment Securities 161,348 140,513 Other Long-term Investments 6,643 6,737 Investments in Joint Ventures and Other Investments 31,866 30,745 Contributions Receivable 5,787 5,787 Deferred Financing Costs and Other Assets 1,220 1,318 Total Other Assets 206,865 185,101 Total Assets $ 470,142 $ 454,965 LIABILITIES AND NET ASSETS Current Liabilities Current Installments of Long Term Debt $ 5,170 $ 5,365 Accounts Payable 15,571 23,494 Accrued Expenses: Accrued Payroll 11,390 11,275 Accured Interest 202 219 Due to Affiliates 121 700 Estimated Net Settlements Due to Third-Party Payors 35,186 31,369 Other Current Liabilities 7,711 7,173 Total Current Liabilities 75,351 79,594 Long Term Debt, net 99,010 99,010 Other Long Term Liabilities 106,825 107,975 Total Liabilities 281,186 286,580 NET ASSETS Unrestricted 173,903 154,268 Temporarily Restricted 11,023 10,134 Permanently Restricted 4,031 3,984 Total Net Assets 188,956 168,385 Total Liabilities and Net Assets $ 470,142 $ 454,965
Statement of Operations (Unaudited) (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2013 2012 2013 2012 Unrestricted Revenue $ 83,298 $ 84,950 Net Patient Revenue $ 249,342 $ 253,772 5,921 6,114 Other Operating Revenue 18,566 18,114 89,219 91,064 Total unrestricted revenue 267,908 271,886 Operating Expense 27,131 27,887 Salaries 80,814 81,492 11,440 11,094 Physician Compensation and Benefits 33,994 34,189 6,305 7,580 Employee Benefits 19,184 23,677 12,247 12,486 Supplies Expense 37,733 38,162 21,865 21,758 Other Expenses 66,225 64,568 5,344 5,446 Depreciation & Amortization 16,424 16,699 551 642 Interest 1,722 1,912 84,883 86,893 Total Operating Expense 256,097 260,700 4,336 4,171 Operating Income 11,811 11,187 Nonoperating Gains (Losses) 4,850 5,082 Investment Income 8,992 10,967 446 1,328 Other Non-Operating Income (loss) (504) 2,582 5,296 6,410 Total nonoperating gains (losses), net 8,488 13,549 $ 9,632 $ 10,581 Revenue Over Expense $ 20,299 $ 24,735
Statement of Changes in Net Assets (Unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2013 2012 2013 2012 Unrestricted Net Assets $ 9,632 $ 10,581 Excess revenue over expenses $ 20,299 $ 24,735 (705) Transfers to affiliates, net (1,788) 52 112 Net assets released from restrictions - used for capital expenditures 145 182 731 466 Change in beneficial interest in net assets of affiliate 978 1,443 Equity Contribution from affliates - 9,710 11,158 Increase (Decrease) in unrestricted net assets 19,635 26,360 Temporarily Restricted Net Assets 111 83 Contributions 280 250 (100) (90) Net assets released from restriction - operations (245) (265) 445 345 Change in beneficial interest in net assets of affiliate 854 851 456 338 Increase (Decrease) in temporarily restricted net assets 889 836 Permanently Restricted Net Assets 23 16 Change in beneficial interest in net assets of affiliate 47 42 23 16 Increase (Decrease) in permanently restricted net assets 47 42 10,189 11,512 Increase (Decrease) in Net Assets 20,571 27,238 178,766 134,840 Net Assets, Beginning of Period 168,385 119,114 $ 188,956 $ 146,352 Net Assets, End of Period $ 188,956 $ 146,352
Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2013 2012 2013 2012 Operating Activities $ 10,189 $ 11,512 Increase (decrease) in net assets $ 20,571 $ 27,238 Items not requiring (providing) operating cash: (4,850) (5,082) Net (gains) losses on investments (8,992) (10,967) (253) (1,142) Net (gains) losses on swaps 1,081 (2,011) (86) - Restricted contributions, investment income and government grants received (255) - 5,361 5,463 Depreciation and amortization 16,476 16,750 - - (Gain) Loss on sale of assets (3) 18 (1,200) (360) Change in beneficial interest in net assets of affiliates (1,880) (892) Changes in working capital: 113 (3,512) Receivables 14,682 (1,243) 1,492 1,342 Inventories, prepaid expenses, other assets (1,271) 2,064 4,493 5,205 Accounts payable, accrued liabilities and other liabilities 158 (12,180) (4,540) (2,687) Due to affiliates (987) 2,026 4,172 4,544 Due to third party payers 3,817 3,414 11,959 15,283 Net cash provided by operating activities 37,537 24,217 Investing Activities (5,238) (7,108) Capital expenditures (15,385) (12,235) (158) 845 (Increase) decrease in assets limited as to use, net (229) 1,333 (976) (9,980) (Increase) decrease in other long-term investments (12,649) (12,415) 985 437 (Investments in) distributions from joint ventures, net 758 953 (5,388) (15,806) Net cash (used in) provided by investing activities (27,505) (22,364) Financing Activities - - Payments on bonds and other long-term debt (195) (512) 554 360 Proceeds from restricted contrib., invest. inc & govt grants 1,156 892 554 360 Net cash (used in) provided by financing activities 962 380 7,126 (162) Increase (Decrease) in Cash and Cash Equivalents, for the period 10,994 2,234 31,153 19,816 Cash and Cash Equivalents, beginning of period 27,285 17,420 $ 38,279 $ 19,654 Cash and Cash Equivalents, end of period $ 38,279 $ 19,654