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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended DecemberMarch 31, 19941995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ---------------- to -----------------
Commission File No. 1-6639
CHARTER MEDICAL CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 58-1076937
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3414 Peachtree Rd., NE, Suite 1400
Atlanta, Georgia 30326
(Address of principal executive offices)
(Zip Code)
(404) 841-9200
(Registrant's telephone number, including area code)
See Table of Additional Registrants below.
___________
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
___________
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes X No
--- ---
The number of shares of the Registrant's Common Stock outstanding as of January 31,April
30, 1995, was 28,341,246.
_______________________________________________________________________________
28,370,255.
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ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Ambulatory Resources, Inc. Georgia 58-1456102 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Atlanta MOB, Inc. Georgia 58-1558215 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Beltway Community Hospital, Texas 58-1324281 3414 Peachtree Rd., N.E.,
Inc. Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
C.A.C.O. Services, Inc. Ohio 58-1751511 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
CCM, Inc. Nevada 58-1662418 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
CMCI, Inc. Nevada 88-0224620 1061 East Flamingo Road
Suite One
Las Vegas, NV 89119
(702) 737-0282
CMFC, Inc. Nevada 88-0215629 1061 East Flamingo Road
Suite One
Las Vegas, NV 89119
(702) 737-0282
CMSF, Inc. Florida 58-1324269 3550 Colonial Boulevard
Fort Myers, FL 33912
(813) 939-0403
CPS Associates, Inc. Virginia 58-1761039 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Alvarado Behavioral California 58-1394959 7050 Parkway Drive
Health System, Inc. La Mesa, CA 91942-2352
(619) 465-4411
Charter Appalachian Hall North Carolina 58-2097827 6058-20978 2760 Caledonia Road
Behavioral Health System, Inc. Asheville, NC 28803
(704) 253-3681
-i-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Augusta Behavioral Georgia 58-1615676 3100 Perimeter Parkway
Health System, Inc. P.O. Box 14939
Augusta, GA 30909
(404) 868-6625
Charter Arbor Indy Indiana 35-1916340 3414 Peachtree Rd., N.E., Suite 1400
Behavioral Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Bay Harbor Behavioral Florida 58-1640244 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Suite 1400
Atlanta, Georgia 30326
(404) 841-9200
Charter Beacon Behavioral Indiana 58-1524996 1720 Beacon Street
Health System, Inc. Fort Wayne, IN 46805
(219) 423-3651
Charter Behavioral Health System New Jersey 58-2097832 1958-20978 3219 Prospect Street
at Fair Oaks, Inc. Summit, NJ 07901
(908) 277-9102
Charter Behavioral Health System Maryland 52-1866212 52252-186621 2522 Thomas Run Road
at Hidden Brook, Inc. Bel Air, MD 21014
(410) 879-1919
Charter Behavioral Health System California 33-0606642 3414 Peachtree Rd., N.E., Suite 1400
at Los Altos, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System Florida 65-0519663 1324 37th Avenue, East
at Manatee Palms TherapeuticAdolescent Treatment Bradenton, FL 34208
Group Homes,Services, Inc. (813) 746-1388
Charter Behavioral Health System Maryland 52-1866221 1490152-18662211 4901 Broschart Road
at Potomac Ridge, Inc. Rockville, MD 20850
(301) 251-4500
Charter Behavioral Health System Maryland 52-1866214 3680 Warwick Road, Route 1
at Warwick Manor,of Delmarva, Inc. East New Market, MD 21631
(410) 943-8108
Charter Behavioral Health System Georgia 58-1513304 24058-151330 4240 Mitchell Bridge Road
of Athens, Inc. Athens, GA 30606
(404) 546-7277
Charter Behavioral Health System Texas 58-1440665 8402 Cross Park Drive
of Austin, Inc. Austin, TX 78754
(512) 837-1800
-ii-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Behavioral Health System Texas 76-0430571 70976-043057 1709 Medical Center Boulevard
of Baywood, Inc. Webster, TX 77598
(713) 332-9550
Charter Behavioral Health System Florida 58-1527678 4480 51st Street, West
of Bradenton, Inc. Bradenton, FL 34210
(813) 746-1388
Charter Behavioral Health System California 95-4470774 3414 Peachtree Rd., N.E., Suite 1400
of Canoga Park, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System Georgia 58-1408670 3500 Riverside Drive
of Central Georgia, Inc. Macon, GA 31210
(912) 474-6200
Charter Behavioral Health System South Carolina 58-1761157 2777 Speissegger Drive
of Charleston, Inc. Charleston, SC 29405-8299
(803) 747-5830
Charter Behavioral Health System Virginia 58-1616917 2101 Arlington Boulevard
of Charlottesville, Inc. Charlottesville, VA 22903-1593
(804) 977-1120
Charter Behavioral Health System Illinois 58-1315760 4700 North Clarendon Avenue
of Chicago, Inc. Chicago, IL 60640
(312) 728-7100
Charter Behavioral Health System California 58-1473063 3414 Peachtree Rd., N.E., Suite 1400
of Chula Vista, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System Missouri 61-1009977 200 Portland Street
of Columbia, Inc. Columbia, MO 65201
(314) 876-8000
Charter Behavioral Health System Texas 58-1513305 3126 Rodd Field Road
of Corpus Christi, Inc. Corpus Christi, TX 78414
(512) 993-8893
Charter Behavioral Health System Texas 58-1513306 6800 Preston Road
of Dallas, Inc. Plano, TX 75024
(214) 964-3939
Charter Behavioral Health System Indiana 35-1916338 7200 East Indiana
of Evansville, Inc. Evansville, IN 47715
(812) 476-7200
-iii-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Behavioral Health System Texas 58-1643151 6201 Overton Ridge Blvd.
of Fort Worth, Inc. Fort Worth, TX 76132
(817) 292-6844
Charter Behavioral Health System Mississippi 58-1616919 3531 Lakeland Drive
of Jackson, Inc. Jackson, MS 39208
(601) 939-9030
Charter Behavioral Health System Florida 58-1483015 3947 Salisbury Road
of Jacksonville, Inc. Jacksonville, FL 32216
(904) 296-2447
Charter Behavioral Health System Indiana 35-1916342 3414 Peachtree Rd., N.E., Suite 1400
of Jefferson, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System Kansas 58-1603154 8000 West 127th Street
of Kansas City, Inc. Overland Park, KS 66213
(913) 897-4999
Charter Behavioral Health System Louisiana 72-0686492 31072-068649 2310 Youngsville Highway
of Lafayettte, Inc. Lafayette, LA 70508
(317) 448-6999
Charter Behavioral Health System Louisiana 62-1152811 4250 Fifth Avenue, South
of Lake Charles, Inc. Lake Charles, LA 70605
(318) 474-6133
Charter Behavioral Health System California 33-0606647 3414 Peachtree Rd., N.E., Suite 1400
of Lakewood, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System Indiana 35-1916343 3714 S. Franklin Street
of Michigan City, Inc. Michigan City, IN 46360
(219) 872-0531
Charter Behavioral Health System Alabama 58-1569921 5800 Southland Drive
of Mobile, Inc. Mobile, AL 36693
(205) 661-3001
Charter Behavioral Health System New Hampshire 02-0470752 29 Northwest Boulevard
of Nashua, Inc. Nashua, NH 03063
(603) 886-5000
Charter Behavioral Health System Nevada 58-1321317 7000 West Spring Mountain Rd.
of Nevada, Inc. Las Vegas, NV 89117
(702) 876-4357
-iv-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Behavioral Health System New Mexico 58-1479480 5901 Zuni Road, SE
of New Mexico, Inc. Albuquerque, NM 87108
(505) 265-8800
Charter Behavioral Health System California 58-1857277 101 Cirby Hills Drive
of Northern California, Inc. Roseville, CA 95678
(916) 969-4666
Charter Behavioral Health System Arkansas 58-1449455 4253 Crossover Road
of Northwest Arkansas, Inc. Fayetteville, AR 72703
(501) 521-5731
Charter Behavioral Health System Indiana 58-1603160 101 West 61st Avenue
of Northwest Indiana, Inc. State Road 51
Hobart, IN 46342
(219) 947-4464
Charter Behavioral Health System Kentucky 61-1006115 435 Berger Road
of Paducah, Inc. Paducah, KY 42002-7609
(502) 444-0444
Charter Behavioral Health System Illinois 36-3946945 3414 Peachtree Rd., N.E., Suite 1400
of Rockford, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System California 58-1747020 455 Silicon Valley Boulevard
of San Jose, Inc. San Jose, CA 95138
(408) 224-2020
Charter Behavioral Health System Georgia 58-1750583 1150 Cornell Avenue
of Savannah, Inc. Savannah, GA 31406
(912) 354-3911
Charter Behavioral Health System California 58-1366605 3414 Peachtree Rd., N.E., Suite 1400
of Southern California, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System Florida 58-1616916 4004 North Riverside Drive
of Tampa Bay, Inc. Tampa, FL 33603
(813) 238-8671
Charter Behavioral Health System Arkansas 71-0752815 801 Arkansas Boulevard
of Texarkana, Inc. Texarkana, AR 75502
(501) 773-3131
Charter Behavioral Health System California 95-2685883 2055 Kellogg Drive
of the Inland Empire, Inc. Corona, CA 91719
(714) 735-2910
-v-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Behavioral Health System Ohio 58-1731068 1725 Timberline Road
of Toledo, Inc. Maumee, Ohio 43537
(419) 891-9333
Charter Behavioral Health System Arizona 86-0757462 7220 E. Rosewood Street
of Tucson, Inc. Tucson, AZ 85710
(602) 296-2828
Charter Behavioral Health System Virginia 54-1703071 3414 Peachtree Rd., N.E., Suite 1400
of Virginia Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health System California 33-0606644 1100 S. Akers
of Visalia, Inc. Visalia, CA 93277
(209) 627-3301
Charter Behavioral Health System Minnesota 41-1775626 109 North Shore Drive
of Waverly, Inc. Waverly, MN 55390
(612) 658-4811
Charter Behavioral Health System North Carolina 56-1050502 3637 Old Vineyard Road
of Winston-Salem, Inc. Winston-Salem, NC 27104
(919) 768-7710
Charter Behavioral Health System California 33-0606646 3414 Peachtree Rd., N.E., Suite 1400
of Yorba Linda, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Behavioral Health Georgia 58-1900736 3414 Peachtree Rd., N.E., Suite 1400
Systems of Atlanta, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Brawner Behavioral Georgia 58-0979827 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter By-The-Sea Georgia 58-1351301 2927 Demere Road
Behavioral Health System, Inc. St. Simons Island, GA 31522
(912) 638-1999
Charter Canyon Behavioral Health Utah 58-1557925 175 West 7200 South
System, Inc. Midvale, UT 84047
(801) 561-8181
Charter Canyon Springs California 33-0606640 69696 Ramon Road
Behavioral Health System, Inc. Cathedral City, CA 92234
(619) 321-2000
-vi-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Centennial Peaks Colorado 58-1761037 2255 South 88th Street
Behavioral Health System, Inc. Louisville, CO 80027
(303) 673-9990
Charter Community Hospital, California 58-1398708 21530 South Pioneer Boulevard
Inc. Hawaiian Gardens, CA 90716
(310) 860-0401
Charter Community Hospital Iowa 58-1523702 3414 Peachtree Rd., N.E., Suite 1400
of Des Moines, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Contract Services, Inc. Georgia 58-2100699 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Cove Forge Behavioral Pennsylvania 25-1730464 New Beginnings Road
Health System, Inc. Williamsburg, PA 16693
(814) 832-2121
Charter Crescent Pines Behavioral Georgia 58-1249663 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Fairbridge Maryland 52-1866218 14907 Broschart Road
Behavioral Health System, Inc. Rockville, MD 20850
(301) 251-4565
Charter Fairmount Behavioral Pennsylvania 58-1616921 561 Fairthorne Avenue
Health System, Inc. Philadelphia, PA 19128
(215) 487-4000
Charter Fenwick Hall South Carolina 57-0995766 3414 Peachtree Rd., N.E., Suite 1400
Behavioral Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Financial Offices, Inc. Georgia 58-1527680 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Forest Behavioral Louisiana 58-1508454 9320 Linwood Avenue
Health System, Inc. Shreveport, LA 71106
(318) 688-3930
Charter Grapevine Behavioral Texas 58-1818492 2300 William D. Tate Ave.
Health System, Inc. Grapevine, TX 76051
(817) 481-1900
-vii-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Greensboro Behavioral North Carolina 58-1335184 700 Walter Reed Drive
Health System, Inc. Greensboro, NC 27403
(919) 852-4821
Charter Health Management Texas 58-2025056 3414 Peachtree Rd., N.E., Suite 1400
of Texas, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of Ohio 58-1598899 3414 Peachtree Rd., N.E.,
Columbus, Inc. Suite 1400
Columbus, Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of Denver, Colorado 58-1662413 3414 Peachtree Rd., N.E.,
Inc. Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of Ft. Collins, Colorado 58-1768534 3414 Peachtree Rd., N.E.,
Inc. Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of Laredo, Inc. Texas 58-1491620 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of Miami, Inc. Florida 61-1061599 11100 N.W. 27th Street
Inc.
Miami, FL 33172
(305) 591-3230
Charter Hospital of Mobile, Inc. Alabama 58-1318870 251 Cox Street
Inc.
Mobile, AL 36604
(205) 432-4111
Charter Hospital of Northern New Jersey 58-1852138 3414 Peachtree Rd., N.E., Suite 1400
New Jersey, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of Santa New Mexico 58-1584861 3414 Peachtree Rd., N.E.,
Teresa, Inc. Suite 1400
Teresa, Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of St. Louis, Inc. Missouri 58-1583760 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Hospital of Torrance, Inc. California 58-1402481 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
-viii-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Indianapolis Behavioral Indiana 58-1674291 5602 Caito Drive
Health System, Inc. Indianapolis, IN 46226
(317) 545-2111
Charter Lafayette Behavioral Indiana 58-1603158 3700 Rome Drive
Health System, Inc. Lafayette, IN 47905
(317) 448-6999
Charter Lakehurst New Jersey 22-3286879 440 Beckerville Road
Behavioral Health System, Inc. Lakehurst, NJ 08733
(908) 657-4800
Charter Lakeside Behavioral Tennessee 62-0892645 2911 Brunswick Road
Health System, Inc. Memphis, TN 38134
(901) 377-4700
Charter Laurel Heights Georgia 58-1558212 3414 Peachtree Rd., N.E., Suite 1400
Behavioral Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Laurel Oaks Behavioral Florida 58-1483014 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Linden Oaks Illinois 36-3943776 852 West Street
Behavioral Health System, Inc. Naperville, IL 60540
(708) 305-5500
Charter Little Rock Behavioral Arkansas 58-1747019 1601 Murphy Drive
Health System, Inc. Maumelle, AR 72113
(501) 851-8700
Charter Louisville Behavioral Kentucky 58-1517503 1405 Browns Lane
Health System, Inc. Louisville, KY 40207
(502) 896-0495
Charter MOB of Virginia 58-1761158 1023 Millmont Avenue
Charlottesville, Inc. Charlottesville, VA 22901
(804) 977-1120
Charter Meadows Maryland 52-1866216 730 Maryland, Route 3
Behavioral Health System, Inc. Gambrills, MD 21054
(410) 923-6022
Charter Medfield Behavioral Florida 58-1705131 1950 Benoist Farms Rd.
Health System, Inc. West Palm Beach, FL 33411
(404) 841-9200
-ix-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Medical - California, Inc. Georgia 58-1357345 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Medical - Clayton Georgia 58-1579404 3414 Peachtree Rd., N.E.,
County, Inc. Suite 1400
County, Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Medical - Cleveland, Inc. Texas 58-1448733 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Medical - Dallas, Inc. Texas 58-1379846 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Medical - Long California 58-1366604 6060 Paramount Boulevard
Beach, Inc. Long Beach, CA 90805
(310) 220-1000
Charter Medical - New York, Inc. New York 58-1761153 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Medical (Cayman Cayman Islands, BWI 58-1841857 Caledonian Bank & Trust
Islands) Ltd. Swiss Bank Building
Caledonian House
Georgetown-Grand Cayman
Cayman Islands
(809) 949-0050
Charter Medical Executive Georgia 58-1538092 3414 Peachtree Rd., N.E.,
Corporation Suite 1400
Corporation
Atlanta, GA 30326
(404) 841-9200
Charter Medical Information Georgia 58-1530236 3414 Peachtree Rd., N.E.,
Services, Inc. Suite 1400
Services, Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Medical International, Cayman Islands, BWI N/A Caledonian Bank & Trust
Inc. Swiss Bank Building
Caledonian House
Georgetown-Grand Cayman
Cayman Islands
(809) 949-0050
Charter Medical International, Nevada 58-1605110 3414 Peachtree Rd., N.E.
S.A., Inc. Suite 1400
S.A., Inc.
Atlanta, GA 30326
(404) 841-9200
-x-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Medical International Cayman Islands Caledonian Bank & Trust
Services, Inc. Swiss Bank Building
Caledonian House
Georgetown-Grand Cayman
Cayman Islands
(809) 949-0050
Charter Medical Management Georgia 58-1195352 3414 Peachtree Rd., N.E.,
Company Suite 1400
Company
Atlanta, GA 30326
(404) 841-9200
Charter Medical of East Arizona 58-1643158 2190 N. Grace Boulevard
Valley, Inc. Chandler, AZ 85224-2195
(602) 899-8989
Charter Medical of England, Ltd. United Kingdom N/A 111 Kings Road
Box 323
London SW3 4PB
London, England
44-71-351-1272
Charter Medical of Florida, Inc. Florida 58-2100703 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Medical of North Arizona 58-1643154 6015 W. Peoria Avenue
Phoenix, Inc. P.O. Box 3469
Phoenix, Inc.
Glendale, AZ 85302
(602) 878-7878
Charter Medical of Orange Florida 58-1615673 3414 Peachtree Rd., N.E.,
County, Inc. Suite 1400
County, Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Medical of Puerto Commonwealth of 58-1208667 Caso Building, Suite 1504
Rico, Inc. Puerto Rico 1225 Ponce De Leon Avenue
Santurce, P.R. 00907
(809) 723-8666
Charter Mental Health Florida 58-2100704 3414 Peachtree Rd., N.E.,
Options, Inc. Suite 1400
Options, Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Mid-South Behavioral Tennessee 58-1860496 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
-xi-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Milwaukee Behavioral Wisconsin 58-1790135 11101 West Lincoln Avenue
Health System, Inc. West Allis, WI 53227
(414) 327-3000
Charter Mission Viejo Behavioral California 58-1761156 23228 Madero
Health System, Inc. Mission Viejo, CA 92691
(714) 830-4800
Charter North Behavioral Alaska 58-1474550 2530 DeBarr Road
Health System, Inc. Anchorage, AK 99508-2996
(907) 258-7575
Charter Northbrooke Wisconsin 39-1784461 3414 Peachtree Rd., N.E., Suite 1400
Behavioral Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter North Counseling Alaska 58-2067832 2530 DeBarr Road
Center, Inc. Anchorage, AL 99508-2996
(907) 258-7575
Charter Northridge Behavioral North Carolina 58-1463919 400 Newton Road
Health System, Inc. Raleigh, NC 27615
(919) 847-0008
Charter Northside Hospital, Inc. Georgia 58-1440656 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Oak Behavioral California 58-1334120 1161 East Covina Boulevard
Health System, Inc. Covina, CA 91724
(818) 966-1632
Charter of Alabama, Inc. Alabama 63-0649546 3414 Peachtree Rd., N.E.,
Suite 1400
Macon, Georgia 31298
(404) 841-9200
Charter Palms Behavioral Texas 58-1416537 1421 E. Jackson Avenue
Health System, Inc. P.O. Box 5239
McAllen, TX 78502
(512) 631-5421
Charter Peachford Behavioral Georgia 58-1086165 2151 Peachford Road
Health System, Inc. Atlanta, GA 30338
(404) 455-3200
Charter Pines Behavioral North Carolina 58-1462214 3621 Randolph Road
Health System, Inc. Charlotte, NC 28211
(704) 365-5368
-xii-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Plains Behavioral Texas 58-1462211 801 N. Quaker Avenue
Health System, Inc. Lubbock, TX 79408
(806) 744-5505
Charter-Provo School, Inc. Utah 58-1647690 4501 North University Ave.
Provo, UT 84604
(801) 227-2000
Charter Acquisition Subsidiary, Delaware 58-1852072 3414 Peachtree Rd., N.E.,
Inc. Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Real Behavioral Texas 58-1485897 8550 Huebner Road
Health System, Inc. San Antonio, TX 78240
(512) 699-8585
Charter Regional Medical Texas 74-1299623 3414 Peachtree Rd., N.E.,
Center, Inc. Suite 1400
Center, Inc.
Atlanta, Georgia 30326
(404) 841-9200
Charter Richmond Behavioral Virginia 58-1761160 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Ridge Behavioral Kentucky 58-1393063 3050 Rio Dosa Drive
Health System, Inc. Lexington, KY 40509
(606) 269-2325
Charter Rivers Behavioral South Carolina 58-1408623 2900 Sunset Boulevard
Health System, Inc. West Columbia, SC 29169
(803) 796-9911
Charter San Diego Behavioral California 58-1669160 11878 Avenue of Industry
Health System, Inc. San Diego, CA 92128
(619) 487-3200
Charter Serenity Lodge Behavioral Virginia 54-1703066 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Atlanta, GA 30326
(404) 841-9200
Charter Sioux Falls Behavioral South Dakota 58-1674278 2812 South Louise Avenue
Health System, Inc. Sioux Falls, SD 57106
(605) 361-8111
Charter South Bend Behavioral Indiana 58-1674287 6704 N. Gumwood Drive
Health System, Inc. Granger, IN 46530
(219) 272-9799
-xiii-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charter Springs Behavioral Florida 58-1517461 3130 S.W. 27th Avenue
Health System, Inc. Ocala, FL 32674
(904) 237-7293
Charter Springwood Virginia 58-2097829 Route 4, Box 50
Behavioral Health System, Inc. Leesburg, VA 22075
(703) 777-0800
Charter Suburban Hospital Texas 75-1161721 3414 Peachtree Rd., N.E., Suite 1400
of Mesquite, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Charter Terre Haute Behavioral Indiana 58-1674293 1400 Crossing Boulevard
Health System, Inc. Terre Haute, IN 47802
(812) 299-4196
Charter Thousand Oaks Behavioral California 58-1731069 150 Via Merida
Health System, Inc. Thousand Oaks, CA 91361
(805) 495-3292
Charter Tidewater Behavioral Virginia 54-1703069 3414 Peachtree Rd., N.E., Suite 1400
Health System, Inc. Atlanta, GA 30326
(404) 841-9200
Charter Treatment Center of Michigan 58-2025057 3414 Peachtree Rd., N.E.,
Michigan, Inc. Suite 1400
Michigan, Inc.
Atlanta, GA 30326
(404) 841-9200
Charter Westbrook Behavioral Virginia 54-0858777 1500 Westbrook Avenue
Health System, Inc. Richmond, VA 23227
(804) 266-9671
Charter White Oak Maryland 52-1866223 Post Office Box 56
Behavioral Health System, Inc. 1441 Taylors Island Road
Woolford, MD 21677
(410) 228-7000
Charter Wichita Behavioral Kansas 58-1634296 8901 East Orme
Health System, Inc. Wichita, KS 67207
(316) 686-5000
Charter Woods Behavioral Alabama 58-1330526 700 Cottonwood Road
Health System, Inc. Dothan, AL 36301
(205) 794-4357
Charter Woods Hospital, Inc. Alabama 58-2102628 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
-xiv-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
Charterton/LaGrange, Inc. Kentucky 61-0882911 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Desert Springs Hospital, Inc. Nevada 88-0117696 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, Georgia 30326
(404) 841-9200
Employee Assistance Services, Inc. Georgia 58-1501282 3414 Peachtree Rd., N.E.,
Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Florida Health Facilities, Inc. Florida 58-1860493 21808 State Road 54
Inc. Lutz,54Lutz, FL 33549
(813) 948-2441
Gulf Coast EAP Services, Inc. Alabama 58-2101394 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Gwinnett Immediate Care Georgia 58-1456097 3414 Peachtree Rd., N.E.,
Center, Inc. Suite 1400
Center, Inc.
Atlanta, GA 30326
(404) 841-9200
HCS, Inc. Georgia 58-1527679 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Holcomb Bridge Immediate Georgia 58-1374463 3414 Peachtree Rd., N.E., Suite 1400
Care Center, Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Hospital Investors, Inc. Georgia 58-1182191 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Illinois Mentor, Inc. Illinois 36-3643670 45 Milk Street
Boston, MA 02109
Magellan Health Services, Inc. Delaware 04-3250732 45 Milk Street
Boston, MA 02109
Mandarin Meadows, Inc. Florida 58-1761155 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Massachusetts Mentor, Inc. Massachusetts 04-2799071 45 Milk Street
Boston, MA 02109
Metropolitan Hospital, Inc. Georgia 58-1124268 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Middle Georgia Hospital, Inc. Georgia 58-1121715 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
-xv-
ADDITIONAL REGISTRANTS(1)
Address including zip code,
State or other and telephone number
Exact name of jurisdiction of I.R.S. Employer including area code,
registrant as specified incorporation Identification of registrant's principal
in its charter or organization Number executive offices
National Mentor, Inc. Delaware 04-2794857 45 Milk Street
Boston, MA 02109
National Mentor Healthcare, Inc. Massachusetts 04-2893910 45 Milk Street
Boston, MA 02109
NEPA - Massachusetts, Inc. Massachusetts 58-2116751 #6 Courthouse Lane
Chelmsford, MA 01863
(508) 441-2332
NEPA - New Hampshire, Inc. New Hampshire 58-2116398 29 Northwest Boulevard
Nashua, NH 03063
(603) 886-5000
North Carolina Mentor, Inc. North Carolina 45 Milk Street
Boston, MA 02109
Ohio Mentor, Inc. Ohio 31-1098345 45 Milk Street
Boston, MA 02109
Pacific-Charter Medical, Inc. California 58-1336537 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Pennsylvania Mentor, Inc. Pennsylvania 52-1638594 45 Milk Street
Boston, MA 02109
South Carolina Mentor, Inc. South Carolina 57-0782160 45 Milk Street
Boston, MA 02109
Southeast Behavioral Systems, Georgia 58-2100700 3414 Peachtree Rd., N.E.,
Inc. Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Rivoli, Inc. Georgia 58-1686160 3414 Peachtree Rd., N.E.,
Suite 1400
Atlanta, GA 30326
(404) 841-9200
Schizophrenia Treatment and Georgia 58-1672912 209 Church Street
Rehabilitation, Inc. Decatur, GA 30030
(404) 377-1986
Shallowford Community Hospital, Georgia 58-1175951 3414 Peachtree Rd., N.E.,
Inc. Suite 1400
Inc.
Atlanta, GA 30326
(404) 841-9200
Sistemas De Terapia Georgia 58-1181077 3414 Peachtree Rd., N.E., Suite 1400
Respiratoria, S.A., Inc. Suite 1400
Atlanta, GA 30326
(404) 841-9200
Stuart Circle Hospital Virginia 54-0855184 3414 Peachtree Rd., N.E.,
Corporation Suite 1400
Corporation
Atlanta, GA 30326
(404) 841-9200
Western Behavioral California 58-1662416 3414 Peachtree Rd., N.E.,
Systems, Inc. Suite 1400
Systems, Inc.
Atlanta, GA 30326
(404) 841-9200
(1) The Additional Registrants listed are wholly-owned subsidiaries of the Registrant and are guarantors of the Registrant's 11 1/4%
Series A Senior Subordinated Notes due 2004. The Additional Registrants have been conditionally exempted, pursuant to Section 12(h)
of the Securities Exchange Act of 1934, from filing reports under Section 13 of the Securities Exchange Act of 1934, from
filing reports under Section 13 of the Securities Exchange Act of 1934.
-xvi-
FORM 10-Q
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
INDEX
Page No.
--------
PART I - Financial Information:
Condensed Consolidated Balance Sheets -
September 30, 1994 and DecemberMarch 31, 1994......................1995 . . . . . . . . . . . . . . . . 4
Condensed Consolidated Statements of Operations -
For the Six Months and Quarters ended
DecemberMarch 31, 19931994 and 1994......................................................1995 . . . . . . . . . . . . . . . . . . . . . . . 6
Condensed Consolidated Statement of Changes in
Stockholders' Equity - For the Six Months and
Quarter ended DecemberMarch 31, 1994.............................................1995. . . . . . . . . . . . . . . . . . . . . 7
Condensed Consolidated Statements of Cash Flows -
For the QuartersSix Months ended
DecemberMarch 31, 19931994 and 1994.............1995 . . . . . . . . . . . . . . . . . . . . . . . 8
Notes to Condensed Consolidated Financial Statements...........Statements . . . . . . . . . 9
Management's Discussion and Analysis of Financial
Condition and Results of Operations........................... 17Operations . . . . . . . . . . . . . . . . .17
PART II - Other Information:
Item 4. - Submission of Matters to Vote of Security Holders. . . . . .21
Item 6. - Exhibits and Reports on Form 8-K..................... 21
Signatures.......................................................... 228-K . . . . . . . . . . . . . .21
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
CHARTER MEDICAL CORPORATION
QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
PART I - FINANCIAL INFORMATION
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
September 30 DecemberMarch 31
ASSETS 1994 19941995 --
--------- --------
Current Assets
Cash and cash equivalents.......................equivalents . . . . . . . $129,603 $ 129,603 $ 86,03669,181
Accounts receivable, net........................net. . . . . . . . 170,295 188,952
Supplies........................................219,655
Supplies. . . . . . . . . . . . . . . . 6,097 6,8416,548
Other current assets............................assets. . . . . . . . . . 18,632 31,69115,276
------- -------
Total Current Assets.........................Assets . . . . . . . 324,627 313,520310,660
Property and Equipment
Land............................................Land. . . . . . . . . . . . . . . . . . 96,373 97,94999,408
Buildings and improvements......................improvements. . . . . . . 360,586 381,944
Equipment.......................................397,567
Equipment . . . . . . . . . . . . . . . 92,044 98,209107,070
------- -------
549,003 578,102604,045
Accumulated depreciation........................depreciation. . . . . . . . (56,967) (64,959)(75,352)
------- -------
492,036 513,143528,693
Construction in progress........................progress. . . . . . . . 2,309 3,7195,705
------- -------
494,345 516,862534,398
Assets Restricted for Settlement
of Unpaid Claims...........................................Claims. . . . . . . . . . . . . . 74,532 84,44088,192
Other Long-Term Assets............................Assets . . . . . . . . . . . 41,975 47,92977,276
Reorganization Value in Excess of Amounts
Allocable to Identifiable Assets, net............net. . . 26,001 18,200
__________ __________10,400
---------- ----------
$ 961,480 $ 980,951$1,020,926
---------- ----------
---------- ----------
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except shares and per share data)
September 30 DecemberMarch 31
LIABILITIES AND STOCKHOLDERS' EQUITY 1994 19941995
------------ --------
Current Liabilities
Accounts payable..................................payable. . . . . . . . . . . . $50,745 $ 50,745 $ 53,26263,381
Note payable......................................payable. . . . . . . . . . . . . . -- 947
Accrued expenses and other current
liabilities....liabilities. . . . . . . . . . . . . . 161,650 147,400145,970
Current maturities of long-term debt and
capital lease obligations........................obligations . . . . . . 2,653 2,6936,653
------- -------
Total Current Liabilities....................Liabilities . . . . . . . 215,048 204,302216,951
Long-Term Debt and Capital Lease Obligations........Obligations 533,476 561,014560,584
Deferred Income Taxes...............................Taxes. . . . . . . . . . . . 12,380 17,11910,983
Reserve for Unpaid Claims...........................Claims. . . . . . . . . . 100,250 103,347110,524
Deferred Credits and Other
Long-Term Liabilities....Liabilities . . . . . . . . . . . 44,105 28,70349,392
Stockholders' Equity
Common Stock, par value $0.25 per share
Authorized - 80,000,000 shares
Issued and outstanding - 26,899,471
shares at September 30, 1994
and 26,924,26628,370,255 shares at
DecemberMarch 31, 1994...........................1995 . . . . . . . . . 6,725 6,7317,093
Other Stockholders' Equity
Additional paid-in capital......................capital . . . . 244,339 242,162250,251
Accumulated deficit.............................deficit. . . . . . . . (119,042) (118,693)(133,628)
Unearned compensation
under ESOP................ESOP . . . . . . . . . . . (73,527) (61,027)(46,754)
Warrants outstanding............................outstanding . . . . . . . 180 11975
Common Stock in Treasury,
42,000 shares. . . . . . . . . . -- (729)
Note Receivable for shares . . . . -- (3,889)
Cumulative foreign currency
adjustments.........adjustments. . . . . . . . . . . (2,454) (2,826)73
------ -----
Stockholders' Equity..........................Equity. . . . . 56,221 66,46672,492
Commitments and Contingencies
__________ __________------- ---------
$ 961,480 $ 980,951
1,020,926
------- ---------
------- ---------
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these balance sheets.
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
For the Three Months ended DecemberFor the Six Months ended
March 31 1993March 31
-------------------------- ------------------------
1994 1995 1994 1995
---------- ---------- --------- --------
Net revenue.................................... $208,817 $263,841revenue . . . . . . . . . . . . . $212,610 $299,817 $421,427 $563,658
Costs and expenses
Salaries, supplies and other
operating expenses.................................... 152,442 199,640expenses . . . . . . . . 153,147 221,526 305,589 421,166
Bad debt expense............................. 16,129 21,219expense. . . . . . . . . . 16,159 23,743 32,288 44,962
Depreciation and amortization................ 6,675 8,357amortization . . . 6,904 10,061 13,579 18,418
Amortization of reorganization
value in excess of amounts
allocable to identi-
fiable assets...............................identifiable
assets . . . . . . . . . . . . . . 7,800 7,800 15,600 15,600
Interest, net................................ 8,367 13,864net . . . . . . . . . . . 8,418 13,537 16,785 27,401
ESOP expense................................. 12,299 12,500expense. . . . . . . . . . . . 12,300 14,273 24,599 26,773
Stock option expense (credit)................ 6,195 (2,361) . . . 656 (956) 6,851 (3,317)
Unusual item.................................item. . . . . . . . . . . . -- (2,960)
209,907 258,05929,800 -- 26,840
------- ------ ------ ------
205,384 319,784 415,291 577,843
------- ------ ------ ------
Income (Loss) before provision
for income taxes......................................... (1,090) 5,782taxes. . . . . . . . . . . . 7,226 (19,967) 6,136 (14,185)
Provision for (benefit from)
income taxes..................... 2,776 5,433taxes. . . . . . . . . . . . . . 6,103 (4,867) 8,879 566
Net income (loss)............................... . . . . . . . . . . . $ (3,866)1,123 $(15,100) $ 349(2,743) $(14,751)
------- ------ ------ ------
------- ------ ------ ------
Average number of common shares
outstanding................................... 25,166 26,910outstanding . . . . . . . . . . . . . . 26,743 28,332 25,936 27,613
------- ------ ------ ------
------- ------ ------ ------
Net income (loss) per common share............. $(.15) $ .01
share . . . $.04 $(.53) $(.11) $(.53)
------- ------ ------ ------
------- ------ ------ ------
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
(In thousands)
Other Stockholders' Equity
Cumulative
Additional Unearned Foreign
Common Stock
Common Stock in Treasury Additional
---------------- ---------------- Paid-in Accumulated Compensation Warrants CurrencyAccumlated
Shares Amount Shares Amount Capital Deficit
Under ESOP Outstanding Adjustments------ ------ ------ ------ ---------- ----------
Balance at September 30, 1994.....1994 26,899 $6,725 -- -- $244,339 $(119,042) $(73,527) $ 180 $(2,454)(119,042)
Additions (Deductions):
Net income......................income. . . . . . . . . . -- -- -- -- -- 349
-- -- --
ESOP expense....................expense. . . . . . . . . -- -- -- -- 12,500 -- --
Stock option expense
(credit)... . . . . . . . . . . -- -- -- -- (2,361) --
Exercise of warrants. . . . . 25 6 -- -- 184 --
Foreign currency
translation loss . . . . . . -- -- -- -- -- --
------ ----- ---- ---- ------- --------
Balance at December 31, 1994 . . . 26,924 6,731 -- -- 242,162 (118,693)
Additions (Deductions):
Net income. . . . . . . . . . -- -- -- -- -- (15,100)
ESOP expense. . . . . . . . . -- -- -- -- -- --
Stock option
expense (credit) . . . . . . -- -- -- -- (956) --
Exercise of options . . . . . 18 5 -- -- 162 --
Exercise of warrants. . . . . 18 5 -- -- 134 --
Foreign currency
translation gain . . . . . . -- -- -- -- -- --
Pooling of Mentor . . . . . . 1,410 352 -- -- 8,749 165
Purchase of Common Stock
for Treasury . . . . . . . . -- -- 42 (729) -- --
--------- --------- -------- -------- ----------- ------------
Balance at March 31, 1995. . . . . 28,370 $ 7,093 42 $ (729) $ 250,251 $ (133,628)
------ ----- ---- ---- ------- --------
------ ----- ---- ---- ------- --------
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (continued)
(Unaudited)
(In thousands)
Cumulative Notes
Unearned Foreign Receivable
Compensation Warrants Currency for
Under ESOP Outstanding Adjustments Shares
------------ ----------- ----------- ----------
Balance at September 30, 1994. . $(73,527) $ 180 $(2,454) --
Additions (Deductions):
Net income. . . . . . . . . -- -- -- --
ESOP expense. . . . . . . . -- -- -- --
Stock option expense
(credit) . . . . . . . . . 12,500 -- -- --
Exercise of warrants. . . . -- (61) -- --
Foreign currency
translation loss . . . . . -- -- (372) --
-------- ----- ----- -----
Balance at December 31, 1994 . . (61,027) 119 (2,826) --
Additions (Deductions):
Net income. . . . . . . . . -- -- -- --
ESOP expense. . . . . . . . 14,273 -- -- --
Stock option
expense (credit) . . . . . -- -- -- --
Exercise of warrants............ 25 6 184options . . . . -- -- (61)-- --
Exercise of warrants. . . . 18 5 -- --
Foreign currency
translation loss...........................gain . . . . . -- -- 2,899 --
Pooling of Mentor . . . . . -- -- -- (3,889)
Purchase of Common Stock
for Treasury . . . . . . . -- -- -- --
-- -- (372)-------- ----- ----- -----
Balance at DecemberMarch 31, 1994...... 26,924 $6,731 $242,162 $(118,693)1995. . . . $(46,754) $ (61,027)75 $ 119 $(2,826)
73 $ (3,889)
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of this statement.
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the ThreeSix Months ended
DecemberMarch 31
1993------------------------
1994 1995
--------- ---------
Cash Flows From Operating Activities
Net income (loss)................................. $ (3,866) $ 349loss . . . . . . . . . . . . . . . . . . $(2,743) $(14,751)
------ -------
Adjustments to reconcile net income (loss)loss
to net cash used inprovided by operating
activities:
Depreciation and amortization . . . 29,179 34,018
ESOP expense. . . . . . . . . . . . 24,599 26,773
Non-cash portion of unusual items . -- 18,800
Stock option expense (credit) . . . 6,851 (3,317)
Non-cash interest expense . . . . . 1,375 1,186
Gain on sale of assets........................assets. . . . . . . -- (2,960)
Depreciation and amortization................. 14,475 16,157
ESOP expense.................................. 12,299 12,500
Stock option expense (credit)................. 6,195 (2,361)
Non-cash interest expense..................... 677 586(2,961)
Cash flows from changes in assets
and liabilities, net of effects
from sales and acquisitions of
businesses:
Accounts receivable, net................... 1,679 (5,373)net. . . . . . (9,475) (16,051)
Other assets............................... 3,692 (14,748)assets. . . . . . . . . . . . 4,443 (10,133)
Accounts payable and other
accrued liabilities............................... (28,107) (14,062)liabilities. . . . . . . . (21,829) (9,739)
Reserve for unpaid claims.................. 263 2,767claims . . . . . (847) 6,044
Income taxes payable....................... (14,392) 4,719payable. . . . . . . . (9,057) (1,700)
Other liabilities.......................... (1,887) (15,402)
Other......................................... 549 (91)liabilities . . . . . . . . . (5,464) (13,654)
Other . . . . . . . . . . . . . . . 1,515 656
------ -------
Total adjustments............................ (4,557) (18,268)adjustments . . . . . . . . . 21,290 29,922
------ -------
Net cash used inprovided by
operating activities.... (8,423) (17,919)activities. . . . . 18,547 15,171
------ -------
Cash Flows From Investing Activities
Capital expenditures.............................. (2,651) (4,304)expenditures. . . . . . . . . . . . . (6,964) (9,402)
Acquisitions of businesses........................businesses. . . . . . . . . . (1,733) (44,836)(64,970)
(Increase) Decrease in assets restricted
for settlement of unpaid claims...................... 1,320 (9,908)claims. . . . . . . 4,058 (13,660)
Proceeds from sale of assets...................... 5,196 5,695assets. . . . . . . . . 7,857 5,879
------ -------
Net cash provided by (used in)
investing activities.................... 2,132 (53,353)activities . . . . . . . 3,218 (82,153)
------ -------
Cash Flows From Financing Activities
Proceeds from issuance of debt....................debt. . . . . . . . -- 28,009
Payments on debt and capital lease
obligations.... (21,439) (433)obligations . . . . . . . . . . . . . . . (60,527) (21,111)
Treasury stock transactions . . . . . . . . . -- (729)
Proceeds from exercise of stock options
and warrants......................................... 734 129warrants . . . . . . . . . . . . . . . 866 391
Tax benefit related to the exercise
of stock options..........................................options . . . . . . . . . . . . . . 9,424 --
Income tax payments made on behalf of
stock optionee.........................................optionee . . . . . . . . . . . . . . . (14,214) --
DecreaseIncrease in cash collateral account............... 5,034account . . . . . (2,781) --
------ -------
Net cash (used in) provided by
(used in)
financing activities.................... (20,461) 27,705activities . . . . . . . (67,232) 6,560
------ -------
Net decrease in cash and cash equivalents........... (26,752) (43,567)equivalents. . . . . (45,467) (60,422)
Cash and cash equivalents at beginning
of period....period . . . . . . . . . . . . . . . 86,002 129,603
------ -------
Cash and cash equivalents at end of period..........period . . . . $ 59,25040,535 $ 86,036
69,181
------ -------
------ -------
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DecemberMarch 31, 19941995
(Unaudited)
NOTE A - Basis of PresentationBASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments, consisting of normal recurring
adjustments considered necessary for a fair presentation, have been included.
These financial statements should be read in conjunction with the audited
consolidated financial statements of the Company for the year ended September
30, 1994, included in the Company's Annual Report on Form 10-K.
NOTE B - Nature of BusinessNATURE OF BUSINESS
The Company's business is seasonal in nature, with a reduced demand for
certain services generally occurring in the fourth fiscal quarter and around
major holidays, such as Thanksgiving and Christmas. The Company's business is
also subject to general economic conditions and other factors. Accordingly, the
results of operations for the interim periods are not necessarily indicative of
the actual results expected for the year.
NOTE C - Supplemental Cash Flow InformationSUPPLEMENTAL CASH FLOW INFORMATION
Below is supplemental cash flow information related to the threesix months
ended DecemberMarch 31, 19931994 and 1994:1995:
For the ThreeSix Months ended
DecemberMarch 31
1993------------------------
1994 1995
--------- -------
(In thousands)
Income taxes paid, net of refunds received....... $ 7,534 $ 698received . . . $8,532 $2,431
Interest paid, net of amounts capitalized........ 4,707 22,601
Note payable incurred in connection with
acquisition of business......................... -- 947capitalized. . . . 16,331 26,241
NOTE D - Long-Term Debt and LeasesLONG-TERM DEBT AND LEASES
Information with regard to the Company's long-term debt and capital lease
obligations at September 30, 1994 and DecemberMarch 31, 1994 follows (in thousands):1995 follows:
September 30 DecemberMarch 31
1994 19941995
------------ --------
(In thousands)
Revolving Credit Agreement due
through 1999 (8.25%(8.19% at DecemberMarch
31, 1994)..............1995) . . . . . . . . . . . . . . . $ 72,584 $100,593
11.25% Senior Subordinated
Notes due 2004.......2004. . . . . . . . . . . . . . 375,000 375,000
7%6.06% to 10.75% Mortgage and other
collateralized notes payable through 1999...........................................1999. . . . . . . . 6,434 7,20811,106
Variable rate secured notes due
through 2013 (5.45%(4.15% to 5.8%4.75% at
DecemberMarch 31, 1994)......1995) . . . . . . . . . . . . . 63,125 63,07562,775
7.5% Swiss Bonds................................Bonds . . . . . . . . . . . . . 6,443 6,443
5.45%4.15% to 12.5% Capital lease
obligations due through 2014...............................2014. . . . . . . 12,870 12,66112,648
------ ------
536,456 564,980568,565
Less amounts due within one year..............year. . . . 2,653 2,6936,653
Less note payable.............................payable . . . . . . . . . . . -- 947
Less debt service funds.......................funds . . . . . . . . 327 326381
------- ------
$533,476 $561,014$560,584
------- ------
------- ------
During the first quarter of fiscal 1995, in connection with the
acquisition described below, the Company borrowed approximately $28 million
under the Revolving Credit Agreement.
On October 17, 1994, the Company made interest payments of approximately
$19.3 million to holders of the 11.25% Senior Subordinated Notes.
NOTE E - Acquisition
As of March 29, 1994 theACQUISITIONS
The Company entered into two agreements with
National Medical Enterprises, Inc. ("NME") providing for the purchase by the
Company ofpurchased substantially all of the assets of 3629 psychiatric
hospitals, eight chemical-dependency treatment facilities, two residential
treatment centers and one physician outpatient practice, including related
outpatient facilities and other associated assets. Under a consent order that has been
conditionally approved by the Federal Trade Commission, the Company has agreed
not to acquire six of such facilities; the Company and NME subsequently agreed
that the Company would not acquire one facility. The remaining 40 facilitiesassets from National Medical
Enterprises, Inc. (the "Acquired Hospitals") have, as. The acquisition occurred in three
phases with the purchase of November 30, 1994, been acquired (the
"Acquisition") by subsidiaries of the Company. The purchase price for the
Acquired Hospitals was approximately $120.4 million in cash plus an additional
cash amount of approximately $51 million, subject to adjustment, for the net
working capital of the Acquired Hospitals.
The Company purchased 27, three and ten of the Acquired Hospitals on June
30, October 31, and November 30, 1994, respectively. The Company accounted for
the Acquisitionacquisition using the purchase method of accounting.
The Company's Consolidated Statement of Operations for the threesix months ended
DecemberMarch 31, 19941995 includes results of operations of 27 of the Acquired Hospitals
for the threesix months, results of operations of three of the Acquired Hospitals for
two months and results of operations of ten of the Acquired Hospitals for one month.four
months. The purchases have been considered one transaction for pro forma
disclosure. Below are unaudited pro forma results of operations for the threesix
months ended DecemberMarch 31, 19931994 and 19941995 as though the Acquired Hospitals had been
purchased on October 1, 1993 and 1994, respectively. The pro forma information
does not purport to be indicative of the results which would actually have been
attained had the Acquisitionacquisition been completed on such date or which may be
attained in the future. (In thousands, except for per share data.)
For the ThreeSix Months Ended
December------------------------------------------------------
March 31, 1993 December1994 March 31, 19941995
------------------------ ------------------------
Actual Pro Forma Actual Pro Forma
------ --------- ------ --------
Net revenue................ $208,817 $285,803 $263,841 $276,191revenue. . . . . . $421,427 $573,009 $563,658 $576,008
Net income (loss)..........loss . . . . . . . $(2,743) $ (3,866) $ (2,409) $ 349 $ 952(26) $(14,751) $(14,148)
Net income (loss)loss per common share.............. $(.15) $(.10) $.01 $.04share . . $(.11) $(.00) $(.53) $(.51)
In January 1995, the Company issued 1,409,978 common shares in exchange for
all the outstanding common and preferred stock of Magellan Health Services, Inc.
("Magellan"). Magellan owns National Mentor, Inc., which provides specialized
health services in mentor homes. The acquisition was accounted for as a pooling
of interests, effective January 1, 1995.
In February 1995, the Company acquired Westwood Pembroke Health System which
includes two psychiatric hospitals and a professional group practice.
NOTE F - Unusual Item
During fiscal 1995UNUSUAL ITEM
In December 1994, the Company recorded an unusual item of approximately $3
million which represented the pre-tax gain on the sale of three psychiatric
hospitals.
In March 1995, the Company and a group of insurance carriers resolved
disputes that arose in fiscal 1995 related to claims paid predominantly in the
1980's. As part of the resolution, the Company will pay the insurance carriers
$29.8 million in five installments over a three year period. The Company and
the insurance carriers intend to continue to do business with each other and
maintain business at the same or similar general levels. No existing agreement,
contract, joint venture, or other business relationship in existence at the time
of the settlement will be terminated or affected as a result of the settlement.
Furthermore, the parties will negotiate in good faith concerning additional
business opportunities.
NOTE G - ContingenciesCONTINGENCIES
The Company is self-insured for a substantial portion of general and
professional liability risks. The reserves for self-insured general and
professional liability losses, including loss adjustment expenses, are based on
actuarial estimates using the Company's historical claims experience adjusted
for current industry trends. The reserve for unpaid claims is adjusted as such
claims mature, to reflect revised actuarial estimates based on actual
experience. While management and its actuaries believe that the present reserve
is reasonable, ultimate settlement of losses may vary from the amount provided.
In addition to general and professional liability claims, the Company is
subject to other claims, suits, surveys and investigations. The Company has
reached an agreement-in-principal to settle one of such matters upon payment
of an amount that the Company believes will not exceed $2 million. The terms
of such settlement are subject to certain third-party approvals. In the opinion of
management, the ultimate resolution of such other pending legal proceedings will
not have a material adverse effect on the Company's financial position or
results of operations.
In November 1994, the Company and a group of insurance carriers resolved
disputes that arose in the fourth quarter of fiscal 1994 related to claims
paid predominantly in the 1980's. As part of the resolution, the Company will
pay the insurance carriers approximately $31 million plus interest, for a
total of $37.5 million in four installments over a three year period. The
Company and the insurance carriers will continue to do business at the same or
similar general levels. Furthermore, the parties will seek additional
business opportunities that will serve to enhance their present relationships.
Subsequent to the resolution of these disputes, the Company was contacted
by and began negotiations with two additional insurance carriers concerning
similar issues. While the ultimate outcome of these discussions can not be
predicted at this time, management believes that it has meritorious defenses
to any related lawsuits which may be filed if satisfactory resolution is not
achieved and that resolution of any disputes with these two additional
insurance carriers would not have a material effect on the consolidated
balance sheet or future results of operations.
The Resolution Trust Corporation ("RTC"), for itself or in its capacity as
conservator or receivorreceiver for 12 financial institutions, formerly held certain
debt securities that were issued by the Company in 1988. RTC has indicated to
the Company that it believes that certain financial statements and other
disclosures made by the Company in connection with such debt securities
contained materially misleading statements or material omissions and that such
misleading statements or omissions resulted in an overvaluation of such debt
securities. Specifically, the RTC has indicated its belief that the Company's
financial statements overstated net income for the 1987 fiscal year and the
first three quarters of the 1988 fiscal year due to under
statementunderstatement of
contractual allowances and the allowance for bad debts and that the Company
believed, but did not disclose, that certain negative industry factors or trends
would occur in the foreseeable future. The Company believes that the financial
institutions represented by RTC purchased in 1988 and 1989 $103.4 million face
amount of subordinated debt securities originally issued by the Company in
September 1988. Although the RTC has not disclosed to the Company its (or its
financial institutions') trading losses from the purchases and sales of these
subordinated debtdebts securities, the RTC has disclosed the dates purchases and
sales were made and the face amounts of the subordinated debt securities
involved in these transactions. The Company believes that the trading losses
were approximately $45 million. The Company has agreed to a tolling of the
statute of limitations applicable to RTC's claims. Based on a review of
relevant law and the facts known to the Company, the Company believes it has a
substantial defense to a potential claim by RTC and that such claim would not
have a material adverse effect on the Company's financial position or future
results of operations.
NOTE H - Guarantor Condensed Consolidating Financial StatementsGUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(In thousands, except shares and per share amounts)
DecemberMarch 31, 19941995
-------------------------------------------------------------------------------------------
Charter Medical
Corporation Consolidated
Guarantor Nonguarantor (Parent Elimination Consolidated
ASSETS Subsidiaries Subsidiaries Corporation) Entries Total
------------ ------------ --------------- ------------ ------------
Current Assets
Cash and cash equivalents........................equivalents . . . . . $ 49,52144,948 $ 7,0051,652 $ 29,51022,581 $ -- $ 86,03669,181
Accounts receivable, net......................... 175,593 2,930 10,279 150 188,952
Supplies......................................... 6,435 74 332net. . . . . . 210,467 5,240 3,948 -- 6,841219,655
Supplies .. . . . . . . . . . . . . 6,085 90 373 -- 6,548
Other current assets............................. 23,304 318 18,063 (9,994) 31,691assets. . . . . . . . 9,352 413 10,565 (5,054) 15,276
------- ------- -------- --------- -------
Total Current Assets.......................... 254,853 10,327 58,184 (9,844) 313,520Assets . . . . . 270,852 7,395 37,467 (5,054) 310,660
Property and Equipment
Land............................................. 91,030 5,905Land. . . . . . . . . . . . . . . . 91,600 6,794 1,014 -- 97,94999,408
Buildings and improvements....................... 390,954 5,588 (14,598)improvements. . . . . 405,951 6,414 (14,798) -- 381,944
Equipment........................................ 93,897 1,477 2,835397,567
Equipment . . . . . . . . . . . . . 102,063 1,950 3,057 -- 98,209
575,881 12,970 (10,749)107,070
------- ------- -------- --------- -------
599,614 15,158 (10,727) -- 578,102604,045
Accumulated depreciation......................... (63,978) (1,182) 201depreciation. . . . . . (74,097) (1,540) 285 -- (64,959)(75,352)
Construction in progress......................... 3,445 239progress. . . . . . 5,323 356 26 9 3,719
515,348 12,027 (10,522) 9 516,862- 5,705
------- ------- -------- --------- -------
530,840 13,974 (10,416) - 534,398
Assets restricted for settlement
of unpaid claims............................................claims. . . . . . . . . . . . -- 67,031 17,40971,273 16,919 -- 84,44088,192
Other Long-Term Assets(1).......................... 55,004 29,806 983,485 (1,020,366) 47,929. . . . . . . . 106,747 24,109 1,079,826 (1,133,406) 77,276
Reorganization Value in Excess
of Amounts Allocable to
Identifiable Assets, net.............net. . . . . . . . -- -- 18,20010,400 -- 18,200
$825,205 $119,191 $1,066,756 $(1,030,201)10,400
------- ------- -------- --------- -------
$908,439 $116,751 $1,134,196 $(1,138,460) $ 980,9511,020,926
------- ------- -------- --------- -------
------- ------- -------- --------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable.................................payable. . . . . . . . . . $ 44,76947,297 $ 1,1892,705 $ 7,30413,379 $ -- $ 53,26263,381
Note payable.....................................payable. . . . . . . . . . . . -- 947 -- -- 947
Accrued expenses and other
current liabilities... 66,315 4,984 75,401 700 147,400liabilities. . . . . . . . 59,106 1,430 83,930 1,504 145,970
Current maturities of long-termlong-
term debt and capital
lease obligations....................... 2,576 117obligations. . . . . . . . . 6,530 123 -- -- 2,6936,653
------- ------- -------- --------- -------
Total Current
Liabilities................... 113,660 7,237 82,705 700 204,302Liabilities . . . . . . . . . 112,933 5,205 97,309 1,504 216,951
Long-Term Debt and Capital
Lease Obligations....... (247,849) 2,452 806,411Obligations . . . . . . . . . . . (269,318) (2,108) 832,010 -- 561,014560,584
Deferred Income Taxes..............................Taxes. . . . . . . . . . -- 635 11,752 4,732 17,119730 11,744 (1,491) 10,983
Reserve for Unpaid Claims..........................Claims. . . . . . . . -- 69,474 43,868 (9,995) 103,34771,149 44,429 (5,054) 110,524
Deferred Credits and Other
Long-Term Liabilities(1).................................... 330,584 640 55,554 (358,075) 28,703Liabilities (1) . . . . . . . 360,971 595 76,212 (388,386) 49,392
Stockholders' Equity
Common Stock, par value
$0.25 per share
Authorized - 80,000,000
shares
Issued and outstanding -
26,924,266 shares.....28,370,255 shares . . . . . . 2,872 837 6,7317,093 (3,709) 6,7317,093
Other Stockholders' Equity
Additional paid-in
capital..................... 707,744capital . . . . . . . . . . . 716,655 30,455 242,162 (738,199) 242,162250,251 (747,110) 250,251
Retained earnings
(Accumulated deficit)........ (80,957) 7,460 (118,693) 73,497 (118,693) . . . . (11,116) 7,506 (133,628) 3,610 (133,628)
Unearned compensation
under ESOP...............ESOP. . . . . . . . . . -- -- (61,027)(46,754) -- (61,027)(46,754)
Warrants outstanding...........................outstanding . . . . . -- -- 11975 -- 11975
Common shares in
Treasury. . . . . . . . . . . -- -- (729) -- (729)
Notes Receivable for
Shares. . . . . . . . . . . . (3,889) -- (3,889) 3,889 (3,889)
Cumulative foreign
currency adjustments........ (849) 1 (2,826) 848 (2,826)
628,810 38,753 66,466 (667,563) 66,466adjustments. . . . . (669) 2,382 73 (1,713) 73
------- ------- -------- --------- -------
703,853 41,180 72,492 (745,033) 72,492
Commitments and Contingencies ________ ________ __________ ___________ ___________
$825,205 $119,191 $1,066,756 $(1,030,201)------- ------- -------- --------- -------
$908,439 $ 980,951
116,751 $1,134,196 $(1,138,460) $1,020,926
------- ------- -------- --------- -------
------- ------- -------- --------- -------
(1) Elimination entry related to intercompany receivables and payables and investment in consolidated subsidiaries.
The accompanying Notes to Condensed Consolidating Financial Statements are an integral part of these balance sheets.
NOTE H - GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (CONTINUED)
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(In thousands)thousands, except shares and per share amounts)
September 30, 1994
-------------------------------------------------------------------------------------------
Charter Medical
Corporation Consolidated
Guarantor Nonguarantor (Parent Elimination Consolidated
ASSETS Subsidiaries Subsidiaries Corporation) Entries Total
------------ ------------ --------------- ------------ ------------
Current Assets
Cash and cash equivalents........................equivalents . . . . $ 71,850 $ 8,606 $ 49,147 $ -- $129,603
Accounts receivable, net.........................net. . . . . 166,191 2,780 1,324 -- 170,295
Supplies.........................................Supplies .. . . . . . . . . . . . 5,713 75 309 -- 6,097
Other current assets.............................assets. . . . . . . 11,461 177 19,018 (12,024) 18,632
------- ------- -------- --------- -------
Total Current Assets..........................Assets . . . . 255,215 11,638 69,798 (12,024) 324,627
Property and Equipment
Land.............................................Land. . . . . . . . . . . . . . . 89,340 6,019 1,014 -- 96,373
Buildings and improvements.......................improvements. . . . 369,518 5,666 (14,598) -- 360,586
Equipment........................................Equipment . . . . . . . . . . . . 88,483 1,262 2,299 -- 92,044
------- ------- -------- --------- -------
547,341 12,947 (11,285) -- 549,003
Accumulated depreciation.........................depreciation. . . . . (55,505) (1,056) (406) -- (56,967)
Construction in progress.........................progress. . . . . 2,143 166 -- --- 2,309
------- ------- -------- --------- -------
493,979 12,057 (11,691) --- 494,345
Assets Retrictedrestricted for Settlementsettlement
of Unpaid Claims..unpaid claims. . . . . . . . . . . -- 61,475 13,057 -- 74,532
Other Long-Term Assets(1).......................... . . . . . . 52,438 14,385 988,259 (1,013,107) 41,975
Reorganization Value in Excess
of Amounts Allocable to
Identifiable Assets, net............net. . . . . . . -- -- 26,001 -- 26,001
$ 801,632------- ------- --------- --------- -------
$801,632 $99,555 $1,085,424 $(1,025,131) $961,480
------- ------- --------- --------- -------
------- ------- --------- --------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable.................................payable. . . . . . . . . $ 43,476 $ 1,107 $ 6,162 $ -- $ 50,745
Accrued expenses and other
current liabilities...liabilities. . . . . . . 63,742 1,684 96,224 -- 161,650
Current maturities of long-termlong-
term debt and capital
lease obligations.......................obligations. . . . . . . . 2,537 116 -- -- 2,653
------- ------- -------- --------- -------
Total Current
Liabilities.....................Liabilities . . . . . . . . 109,755 2,907 102,386 -- 215,048
Long-Term Debt and Capital
Lease Obligations......Obligations . . . . . . . . . . (258,010) 1,497 789,989 -- 533,476
Deferred Income Taxes.............................Taxes. . . . . . . . . -- 647 11,733 -- 12,380
Reserve for Unpaid Claims.........................Claims. . . . . . . -- 54,759 57,515 (12,024) 100,250
Deferred Credits and Other
Long-Term Liabilities(1)...................................Liabilities (1) . . . . . . 349,146 669 67,580 (373,290) 44,105
Stockholders' Equity
Common Stock, par value
$0.25 per share
Authorized - 80,000,000
shares
Issued and outstanding -
26,899,486............28,370,255 shares . . . . . 2,866 587 6,725 (3,453) 6,725
Other Stockholders' Equity
Additional paid-in
capital.....................capital . . . . . . . . . . 707,744 30,455 244,339 (738,199) 244,339
Retained earnings
(Accumulated deficit)........ . . . (109,093) 7,734 (119,042) 101,359 (119,042)
Unearned compensation
under ESOP...............ESOP. . . . . . . . . -- -- (73,527) -- (73,527)
Warrants outstanding...........................outstanding . . . . -- -- 180 -- 180
Cumulative foreign
currency adjustments........adjustments. . . . (776) 300 (2,454) 476 (2,454)
------- ------ --------- ---------- --------
600,741 39,076 56,221 (639,817) 56,221
Commitments and Contingencies __________ _______ __________ ___________ ___________
$ 801,632------- ------ --------- ---------- --------
$801,632 $99,555 $1,085,424 $(1,025,131) $ 961,480
$961,480
------- ------- --------- --------- -------
------- ------- --------- --------- -------
(1) Elimination entry related to intercompany receivables and payables and investment in consolidated subsidiaries.
The accompanying Notes to Condensed Consolidating Financial Statements are an integral part of these balance sheets.
NOTE H - GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (CONTINUED)
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONSBALANCE SHEETS
(In thousands)thousands, except shares and per share amounts)
For the Quarter Ended Decemberended March 31, 19941995
-------------------------------------------------------------------------------------------
Charter Medical
Corporation Consolidated
Guarantor Nonguarantor (Parent Elimination Consolidated
Subsidiaries Subsidiaries Corporation) Entries Total
------------ ------------ --------------- ------------ ------------
Net revenue....................................... $255,986 $14,064revenue. . . . . . . . . . . . . $297,171 $10,802 $ (979)(2,701) $ (5,230) $ 263,841(5,455) 299,817
Costs and expenses
Salaries, general and
administrative expenses....................................... 189,520 13,994 1,497 (5,371) 199,640expenses. . . . . 207,425 10,162 9,029 (5,090) 221,526
Bad debt expense................................ 23,210 9 (2,000) 21,219expense. . . . . . . . . 23,586 168 (11) -- 23,743
Depreciation and
amortization................... 8,471 327 (441) 8,357amortization . . . . . . . . . . 9,652 395 237 (223) 10,061
Amortization of
reorganization value in
excess of amounts allocable
to identifiable assets....assets . . . . . -- -- 7,800 -- 7,800
Interest, net................................... (7,330) 8 21,195 (9) 13,864net . . . . . . . . . . (8,470) 30 21,968 9 13,537
ESOP expense.................................... 13,538expense. . . . . . . . . . . 13,431 -- (1,033) (5) 12,500842 -- 14,273
Stock option
expense (credit)................... . . . . . . . . -- -- (2,361)(956) -- (2,361)(956)
Unusual item....................................item. . . . . . . . . . . -- -- (2,960)29,800 -- (2,960)
227,409 14,338 21,697 (5,385) 258,05929,800
------- ------ ------ ----- ------
245,624 10,755 68,709 (5,304) 319,784
------- ------ ------ ----- -------
Income (Loss)(loss) before income taxes
and equity in earnings (loss)
of subsidiaries............... 28,577 (274) (22,676) 155 5,782subsidiaries . . . . . . . . . . . 51,547 47 (71,410) (151) (19,967)
Provision for (benefit from )
income taxes........................taxes. . . . . . . . . . . . . 554 -- -- -- 5,433 5,433(5,421) (4,867)
------- ------ ------ ----- -------
Income (Loss)(loss) before equity in
earnings (loss) of
subsidiaries.................................. 28,577 (274) (22,676) (5,278) 349subsidiaries. . . . . . . . . . . . . 50,993 47 (71,410) 5,270 (15,100)
Equity in earnings (loss)
of subsidiaries......... 587subsidiaries . . . . . . . . . . . 668 -- 23,025 (23,612)56,310 (56,978) --
------- ------ ------ ----- -------
Net income (loss).................................. . . . . . . . . . . $ 29,16451,661 $ (274)47 $(15,100) $(51,708) $(15,100)
------- ------ ------ ----- -------
------- ------ ------ ----- -------
For the Quarter ended March 31, 1994
-------------------------------------------------------------------------------------------
Charter Medical
Corporation Consolidated
Guarantor Nonguarantor (Parent Elimination Consolidated
Subsidiaries Subsidiaries Corporation) Entries Total
------------ ------------ --------------- ------------ ------------
Net revenue. . . . . . . . . . . . . . $210,109 $5,308 $ 349 $(28,890)858 $ 349
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Cash provided by (used in) operating activities... $ (4,416) $ 7,082 $(20,585) $(3,665) $212,610
Costs and expenses
Salaries, general and
administrative expenses. . . . . 145,179 4,518 7,096 (3,646) 153,147
Bad debt expense. . . . . . . . . 15,722 1 436 -- $ (17,919)
Cash Flows from Investing Activities:
Capital expenditures............................ (3,499) (243) (562) -- (4,304)
Acquisitions16,159
Depreciation and
amortization . . . . . . . . . . 6,454 291 109 50 6,904
Amortization of
businesses...................... (41,996) (2,840)reorganization value in
excess of amounts allocable
to identifiable assets . . . . . -- -- (44,836)
Increase in assets restricted for settlement
of unpaid claims...............................7,800 -- (5,556) (4,352)7,800
Interest, net . . . . . . . . . . (4,344) 11 12,757 (6) 8,418
ESOP expense. . . . . . . . . . . 11,254 -- (9,908)
Proceeds from sale of assets....................1,045 1 12,300
Stock option
expense . . . . . . . . . . . . -- -- 5,695656 -- 5,695
Cash provided by (used in) investing activities... (45,495) (8,639) 781 -- (53,353)
Cash Flows from Financing Activities:
Proceeds from issuance656
------- ------ ------ ----- -------
174,265 4,821 29,899 (3,601) 205,384
------- ------ ------ ----- -------
Income (loss) before income taxes
and equity in earnings (loss)
of debt.................. 28,009subsidiaries . . . . . . . . . . . 35,844 487 (29,041) (64) 7,226
Provision for income taxes . . . . . . -- -- -- 28,009
Cash flows from other financing activities...... (427) (44) 1676,103 6,103
------- ------ ------ ----- -------
Income (loss) before equity in
earnings (loss) of
subsidiaries. . . . . . . . . . . . . 35,844 487 (29,041) (6,167) 1,123
Equity in earnings (loss)
of subsidiaries . . . . . . . . . . . 484 -- (304)
Cash used in financing activities................. 27,582 (44) 16730,164 (30,648) --
27,705------- ------ ------ ------ -------
Net increase (decrease) in cash and cash
equivalents...................................... (22,329) (1,601) (19,637) -- (43,567)
Cash and cash equivalents at beginning of period.. 71,850 8,606 49,147 -- 129,603
Cash and cash equivalents at end of period........income (loss). . . . . . . . . . . $ 49,52136,328 $ 7,005487 $ 29,5101,123 $(36,815) $ -- $ 86,036
1,123
------- ------ ------ ------ -------
------- ------ ------ ------ -------
The accompanying Notes to Condensed Consolidating Financial Statements are an integral part of these statements.balance sheets.
NOTE H - GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (CONTINUED)
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONSBALANCE SHEETS
(In thousands)thousands, except shares and per share amounts)
For the Quarter Ended DecemberSix Months ended March 31, 19931995
-------------------------------------------------------------------------------------------
Charter Medical
Corporation Consolidated
Guarantor Nonguarantor (Parent Elimination Consolidated
Subsidiaries Subsidiaries Corporation) Entries Total
------------ ------------ --------------- ------------ ------------
Net revenue....................................... $205,779 $5,283revenue. . . . . . . . . . . . . . $553,157 $24,866 $ 1,563(3,680) $ (3,808) $208,817(10,685) $563,658
Costs and expenses
Salaries, general and
administrative expenses... 145,635 4,190 6,445 (3,828) 152,442expenses. . . . . 396,945 24,156 10,526 (10,461) 421,166
Bad debt expense................................ 16,837 (45) (663)expense. . . . . . . . . 46,796 177 (2,011) -- 16,12944,962
Depreciation and
amortization................... 6,314 163 248 (50) 6,675amortization . . . . . . . . . . 18,123 722 (204) (223) 18,418
Amortization of
reorganization value in
excess of amounts allocable
to identifiable assets....assets . . . . . -- -- 7,80015,600 -- 7,80015,600
Interest, net................................... (3,966)net . . . . . . . . . . (15,800) 38 43,163 -- 12,33327,401
ESOP expense. . . . . . . . . . . 26,969 -- 8,367
ESOP expense.................................... 11,152(191) (5) 26,773
Unusual item. . . . . . . . . . . -- 1,045 102 12,299-- 26,840 -- 26,840
Stock option
expense............................expense (credit) . . . . . . . . -- -- 6,195(3,317) -- 6,195
175,972 4,308 33,403 (3,776) 209,907(3,317)
------- ------ ------ ------ -------
473,033 25,093 90,406 (10,689) 577,843
------- ------ ------ ------ -------
Income (Loss)(loss) before income taxes
and equity in earnings (loss)
of subsidiaries.................. 29,807 975 (31,840) (32) (1,090)subsidiaries . . . . . . . . . . . 80,124 (227) (94,086) 4 (14,185)
Provision for income taxes........................taxes . . . . . . 554 -- -- -- 2,776 2,77612 566
------- ------ ------ ----- -------
Income (Loss)(loss) before equity in
earnings (loss) of
subsidiaries.................................. 29,807 975 (31,840) (2,808) (3,866)subsidiaries. . . . . . . . . . . . . 79,570 (227) (94,086) (8) (14,751)
Equity in earnings (loss)
of subsidiaries......... 551subsidiaries . . . . . . . . . . . 1,255 -- 27,974 (28,525)79,335 (80,590) --
------- ------ ------ ------ -------
Net income (loss).................................. . . . . . . . . . . $ 30,35880,825 $ 975 $(3,866) $(31,333) $ (3,866)(227) $(14,751) $(80,598) $(14,751)
------- ------ ------ ------ -------
------- ------ ------ ------ -------
CONDENSED CONSOLIDATINGCONSOLIDATED STATEMENTS OF CASH FLOWS
Cash provided by (used in)
operating activities... $(17,234) $ 224 $ 8,587activities. . . . . . . . . $21,773 $11,475 $(18,077) $ -- $ (8,423)$15,171
------- ------ ------ ------ -------
Cash Flows from Investing Activities:
Capital expenditures............................ (1,611) (227) (813)expenditures. . . . . . . (8,089) (396) (917) -- (2,651)(9,402)
Proceeds from the sale of assets................ 5,196assets. . . -- -- 5,879 -- 5,1965,879
Acquisitions of businesses...................... (1,733)businesses . . . (61,280) (3,690) -- -- -- (1,733)
(Increase) Decrease(64,970)
Increase in assets
restricted for settlement
of unpaid claims....................claims . . . . . . . . -- 399 921(9,798) (3,862) -- 1,320(13,660)
------- ------ ------ ------ -------
Cash provided by (used in)
investing activities... 1,852 172 108activities. . . . . . . (69,369) (13,884) 1,100 -- 2,132(82,153)
------- ------ ------ ------ -------
Cash Flows from financing activities:
Decrease in cash collateral account.............Financing Activities:
Proceeds from issuance
of debt. . . . . . . . . . . . . 28,009 -- -- 5,034 -- 5,03428,009
Payments on debt and capital
lease obligations.. (1,019)obligations. . . . . . . . . . . (7,315) (4,545) (9,251) -- (20,420)(21,111)
Treasury Stock transactions . . . -- (21,439)
Tax benefit related to the-- (729) -- (729)
Proceeds from exercise of
stock options........................................option and warrants. . . . -- -- 9,424391 -- 9,424
Income tax payments made on behalf of stock
optionee....................................... -- -- (14,214) -- (14,214)
Cash flows from other financing activities...... -- -- 734 -- 734391
------- ------ ------ ------ -------
Cash provided by (used in)
financing activities... (1,019)activities. . . . . . . . . 20,694 (4,545) (9,589) -- (19,442) -- (20,461)6,560
------- ------ ------ ------ -------
Net increase (decrease) in cash
and cash equivalents......... (16,401) 396 (10,747)equivalents. . . . . . . . . (26,902) (6,954) (26,566) -- (26,752)(60,422)
Cash and cash equivalents at
beginning of period.. 45,147 2,756 38,099period . . . . . . . . . 71,850 8,606 49,147 -- 86,002129,603
------- ------ ------ ------ -------
Cash and cash equivalents at
end of period........period . . . . . . . . . . . . $ 28,746 $3,152 $27,35244,948 $ 1,652 $ 22,581 $ -- $ 59,250
69,181
------- ------ ------ ------ -------
------- ------ ------ ------ -------
The accompanying Notes to Condensed Consolidating Financial Statements are an integral part of these statements.balance sheets.
NOTE H - GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (CONTINUED)
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
(In thousands, except shares and per share amounts)
For the Six Months ended March 31, 1994
-------------------------------------------------------------------------------------------
Charter Medical
Corporation Consolidated
Guarantor Nonguarantor (Parent Elimination Consolidated
Subsidiaries Subsidiaries Corporation) Entries Total
------------ ------------ --------------- ------------ ------------
Net revenue. . . . . . . . . . . . . . $415,888 $10,591 $ 2,421 $ (7,473) $421,427
Costs and expenses
Salaries, general and
administrative expenses. . . . . 290,814 8,708 13,541 (7,474) 305,589
Bad debt expense. . . . . . . . . 32,559 (44) (227) -- 32,288
Depreciation and
amortization . . . . . . . . . . 12,768 454 357 -- 13,579
Amortization of
reorganization value in
excess of amounts allocable
to identifiable assets . . . . . -- -- 15,600 -- 15,600
Interest, net . . . . . . . . . . (8,310) 11 25,090 (6) 16,785
ESOP expense. . . . . . . . . . . 22,406 -- 2,090 103 24,599
Stock option
expense. . . . . . . . . . . . . -- -- 6,851 -- 6,851
------- ------ ------ ------ -------
350,237 9,129 63,302 (7,377) 415,291
------- ------ ------ ------ -------
Income (loss) before income taxes
and equity in earnings (loss)
of subsidiaries . . . . . . . . . . . 65,651 1,462 (60,881) (96) 6,136
Provision for income taxes . . . . . . -- -- -- 8,879 8,879
------- ------ ------ ----- -------
Income (loss) before equity in
earnings (loss) of
subsidiaries. . . . . . . . . . . . . 65,651 1,462 (60,881) (8,975) (2,743)
Equity in earnings (loss)
of subsidiaries . . . . . . . . . . . 1,035 -- 58,138 (59,173) --
------- ------ ------ ------ -------
Net income (loss). . . . . . . . . . . $ 66,686 $ 1,462 $(2,743) $(68,148) $(2,743)
------- ------ ------ ------ -------
------- ------ ------ ------ -------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash provided by (used in)
operating activities. . . . . . . . . $350,315 $3,633 $(3,381) $(332,020) $18,547
------- ------ ------ ------- -------
Cash Flows from Investing Activities:
Capital expenditures. . . . . . . (6,613) (144) (207) -- (6,964)
Proceeds from sale of assets. . . 7,857 -- -- -- 7,857
Acquisitions of businesses . . . (1,733) -- -- -- (1,733)
Increase in assets
restricted for settlement
of unpaid claims . . . . . . . . -- 2,456 1,602 -- 4,058
------- ------ ------ ------- -------
Cash provided by (used in)
investing activities. . . . . . . (489) 2,312 1,395 -- 3,218
------- ------ ------ ------- -------
Cash Flows from Financing Activities:
Increase in cash
collateral account . . . . . . . -- -- (2,781) -- (2,781)
Payments on debt and capital
obligations. . . . . . . . . . . (365,499) (27) (27,021) 332,020 (60,527)
Tax benefit related to the
exercise of stock options. . . . -- -- 9,424 -- 9,424
Income tax payments made on
behalf of stock optionee . . . . -- -- (14,214) -- (14,214)
Proceeds from exercise of
stock option and warrants. . . . -- -- 866 -- 866
------- ------ ------ ------- -------
Cash provided by (used in)
financing activities. . . . . . . . . (365,499) (27) (33,726) 332,020 (67,232)
------- ------ ------ ------- -------
Net increase (decrease) in cash
and cash equivalents. . . . . . . . . (15,673) 5,918 (35,712) -- (45,467)
Cash and cash equivalents at
beginning of period . . . . . . . . . 45,147 2,756 38,099 -- 86,002
------- ------ ------ ------- -------
Cash and cash equivalents at
end of period . . . . . . . . . . . . $ 29,474 $ 8,674 $ 2,387 $ -- $ 40,535
------- ------ ------ ------- -------
------- ------ ------ ------- -------
The accompanying Notes to Condensed Consolidating Financial Statements are an integral part of these balance sheets.
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
DecemberMarch 31, 19941995
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Acquisitions
As of March 29, 1994 theACQUISITIONS
The Company entered into two agreements with
National Medical Enterprises, Inc. ("NME") providing for the purchase by the
Company ofpurchased substantially all of the assets of 3629 psychiatric
hospitals, eight chemical-dependency treatment facilities, two residential
treatment centers and one physician outpatient practice, including related
outpatient facilities and other associated assets. Under a consent order that has been
conditionally approved by the Federal Trade Commission, the Company has agreed
not to acquire six of such facilities; the Company and NME subsequently agreed
that the Company would not acquire one facility. The remaining 40 facilitiesassets from National Medical
Enterprises, Inc. (the "Acquired Hospitals") have, as. The acquisition occurred in three
phases with the purchase of 27, three and ten of the Acquired Hospitals on June
30, October 31, and November 30, 1994, been acquired (the
"Acquisition") by subsidiariesrespectively. The Company accounted for
the acquisitions using the purchase method of the Company.accounting. The purchase price
for the Acquired Hospitals was approximately $120.4 million in cash plus an
additional cash amount of approximately $51 million, subject to adjustment, for
the net working capital of the Acquired Hospitals.
The Company purchased 27, three and ten of the Acquired Hospitals on
June 30, October 31 and November 30, 1994, respectively. The Company
accounted for the Acquisition using the purchase method of accounting.
The Company's Consolidated Statement of Operations for the threesix months ended
DecemberMarch 31, 19941995 includes results of operations of 27 of the Acquired Hospitals
for the threesix months, results of operations of three of the Acquired Hospitals for
two months and results of operations of ten of the Acquired Hospitals for one month.
Resultsfour
months.
In January 1995, the Company issued 1,409,978 common shares in exchange for
all the outstanding common and preferred stock of OperationsMagellan Health Services, Inc.
("Magellan"). Magellan owns National Mentor, Inc., which provides specialized
health services in mentor homes. The acquisition was accounted for as a pooling
of interests, effective January 1, 1995.
In February 1995, the Company acquired Westwood Pembroke Health System
which includes two psychiatric hospitals and a professional group practice.
RESULTS OF OPERATIONS
Selected statistics (from the date of acquisition for acquired facilities)
for the 113110 psychiatric hospitals in operation at DecemberMarch 31, 1994,1995, by quarter for
fiscal 1994 and fiscal 1995 follow:follows:
Fiscal FiscalFISCAL FISCAL %
1994 1995 ChangeCHANGE
------ ------ ------
Licensed beds at:
December 31.............................31 . . . . . . . . 6,985 9,737 39%9,467 36%
March 31................................31 . . . . . . . . . . 6,970 9,682 39
June 30.................................30. . . . . . . . . . . 6,970
September 30............................ 8,92430 . . . . . . . . 8,840
Net revenue (in thousands):
Quarter:
First................................. $ 198,129 $ 249,105 26
Second................................First. . . . . . . . . . $198,129 $241,038 22%
Second . . . . . . . . . 198,947 Third.................................265,991 34
Third. . . . . . . . . . 207,023
Fourth................................ 246,476
Year.................................... $ 850,575Fourth . . . . . . . . . 244,453
-------
Year . . . . . . . . . . . . $848,552
-------
-------
Patient days:
Quarter:
First.................................First. . . . . . . . . . 320,664 415,122 29
Second................................406,794 27%
Second . . . . . . . . . 329,267 Third.................................456,316 39
Third. . . . . . . . . . 331,297
Fourth................................ 402,160
Year.................................... 1,383,388Fourth . . . . . . . . . 398,049
-------
Year . . . . . . . . . . . . 1,379,277
FISCAL FISCAL %
1994 1995 CHANGE
------ ------ ------
Equivalent patient days:
Quarter:
First.................................First. . . . . . . . . . 349,947 462,663 32
Second................................453,631 30%
Second . . . . . . . . . 362,538 Third.................................508,481 40
Third. . . . . . . . . . 368,554
Fourth................................ 446,816
Year.................................... 1,527,855Fourth . . . . . . . . . 442,466
---------
Year . . . . . . . . . . . . 1,523,505
---------
---------
Net revenue per equivalent patient day:
Quarter:
First.................................First. . . . . . . . . . $566 $538$531 (6)%
Second . . . . . . . . . 549 523 (5)
Second................................ 549
Third.................................Third. . . . . . . . . . 562
Fourth................................Fourth . . . . . . . . . 552
Year....................................Year . . . . . . . . . . . . 557
Admissions:
Quarter:
First.................................First. . . . . . . . . . 21,875 30,626 40
Second................................29,964 37%
Second . . . . . . . . . 25,037 Third.................................34,698 39
Third. . . . . . . . . . 25,103
Fourth................................ 30,787
Year.................................... 102,802
Fiscal Fiscal %
1994 1995 Change
Fourth . . . . . . . . . 30,548
------
Year . . . . . . . . . . . . 102,563
------
------
Average length of stay:
Quarter:
First.................................First. . . . . . . . . . 14.5 13.3 (8)%
Second................................Second . . . . . . . . . 13.4 Third.................................12.7 (5)
Third. . . . . . . . . . 13.1
Fourth................................Fourth . . . . . . . . . 13.4
Year....................................Year . . . . . . . . . . . . 13.6
Selected statistics for the same-store psychiatric hospitals in operations
during the quarters and six months ending March 31, 1994 and 1995.
FOR THE QUARTER ENDED MARCH 31, 1995
FISCAL FISCAL %
1994 1995 CHANGE
------ ------ ------
*Number of psychiatric
hospitals . . . . . . . . . . 75 74 (1)
Average licensed beds. . . . . 6,975 6,868 (2)
Net revenue (in thousands) . . $198,947 $197,767 (1)
Patient days . . . . . . . . . 329,267 323,501 (2)
Equivalent patient days. . . . 362,538 361,062 (0)
Net revenue per equivalent
patient day . . . . . . . . . $549 $548 (0)
Admissions . . . . . . . . . . 25,037 26,827 7
Average length of stay . . . . 13.4 11.8 (12)
FOR THE SIX MONTHS ENDED MARCH 31, 1995
FISCAL FISCAL %
1994 1995 CHANGE
------ ------ ------
*Number of psychiatric
hospitals . . . . . . . . . . 75 74 (1)
Average licensed beds. . . . . 6,980 6,887 (1)
Net revenue (in thousands) . . $397,076 $384,283 (3)
Patient days . . . . . . . . . 649,931 631,211 (3)
Equivalent patient days. . . . 712,485 704,303 (1)
Net revenue per equivalent
patient day . . . . . . . . . $557 $546 (2)
Admissions . . . . . . . . . . 46,912 51,179 9
Average length of stay . . . . 13.9 12.1 (13)
*The change in number of psych hospitals from 1994 to 1995 is due to the merger
of two facilities.
Patient days at the Company's hospitals increased 94,458 or 29%,39% and 33% for the quarter
and six months ended March 31, 1995, respectively, as compared to 415,122 in the first quartersame
period of fiscal 1995 from 320,664 in fiscal 1994. The increase resulted from the Acquired Hospitals, which provided 107,412 patient
days.Hospitals.
Patient days at the same store hospitals decreased 12,954, or 4%,2% and 3% for the quarter and
six month period ended March 31, 1995 compared to the comparable periods of the
prior fiscal year, due to a 17% decreasedecreases in the average length of stay from 14.5 daysof 12% and 13%
in the first and second quarters of fiscal 199495 compared to 12.4 days in fiscal 1995 for the same store hospitals.prior year. Total
admissions increased 40%, or 8,751, from 21,875 inby 37% and 38% for the quarter and six months ended March
31, 1995 compared to the prior fiscal 1994year. On a same store hospital basis,
admissions increased by 7% and 9% for the quarter and six months ended March 31,
1995 compared to 30,626 inthe prior fiscal 1995.
Of that increase, 6,274 admissions were provided by the Acquired Hospitals.year.
The Company's total net revenue for the quarter and six months ended March
31, 1995 increased $55,024,000, or 26%, from
$208,817,000 in fiscal 1994 to $263,841,000 in fiscal 199541% and 34% respectively, primarily due to the Acquired
Hospitals. Net revenue at the Company's non-psychiatric
operations increased $4,048,000, including $1,771,000 provided by companies
acquired or developed in the Company's expansion of services pursuant to its
business strategy. Net revenue per equivalent patient day decreased in the quarter and
six months ending March 31, 1995 by 5% compared to $538comparable periods in the
prior fiscal 1995 from $566 in fiscal 1994.year. The decreases were primarily due to lower net revenue per
equivalent patient day for the Acquired Hospitals and from a continued shift in
payor mix toward Medicare and Medicaid programs. Net revenue in the quarter
ending March 31, 1995, includes $3.7 million more than the same quarter of the
prior fiscal year for the normal settlement of reimbursement issues. Services
to Medicare and Medicaid patients have increased due to increased recognition
and treatment of the behavioral illnesses of the elderly and disabled and, in some
states, improved coverage of behavioral services in psychiatric hospitals for
Medicaid beneficiaries. The Company believes that, at the same time, revenue
from Blue Cross and commercial insurance payors has declined because of a shift
by purchasers of health coverage to HMOs, and PPOs, and other managed care plans.
Following is a discussion of changes in operating expenses for the first
quarter of fiscal 1994 compared to the first quarter of fiscal 1995.
The Company's salaries, general, and administrative expenses increased $47,198,000, or 31%, to $199,640,00045%
and 38% in the second quarter and first six months of fiscal 1995 from $152,442,000 incompared to
fiscal 1994, primarily due to expenses incurred by the Acquired Hospitals.
The Company's bad debt expensesexpense increased 47% and 39% in the quarter and six
months ended March 31, 1995 compared to $21,219,000the same periods in fiscal 1995
from $16,129,000 in fiscal 1994, an increase of $5,090,000, or 32%
primarily due to expenses incurred by the Acquired Hospitals. Bad debt expensesexpense
as a percentagepercent of net revenue increased to 7.9% in the second quarter of fiscal
1995 from 7.6% in the second quarter of fiscal 1994. Bad debt expense as a
percent of net revenue increased to 8.0% forin the first six months of fiscal 1995
from 7.7% forin the first six months of fiscal 1994. The Company anticipates
future increases in bad debt expenses due to increased deductibles and co-insuranceco-
insurance and reduced annual and lifetime psychiatric maximum payment limits for
individual patients, which will result in the Company not collecting full
charges on an increasing number of patients.
Depreciation and amortization increased $1,682,000, or 25%46% in the second quarter of fiscal
1995 and 36% in the first six months of fiscal 1995 compared to $8,357,000comparable
periods in fiscal 1995.1994. The increaseincreases resulted primarily from depreciation of
the Acquired Hospitals and other acquisitions, and the amortization of the
related covenantcovenants not to compete and goodwill purchased during fiscal 1994.goodwill.
Reorganization value in excess of amounts allocable to identifiable assets is
being amortized over the three-year period ending July 1995.
Net interest expense for the second quarter and first six months of fiscal
1995 increased 66%61% and 63%, respectively, from the previous fiscal year due to
the issuance of the 11.25% Senior Subordinated Notes (the "Notes") in May 1994
and to borrowings under the Revolving Credit Agreement used in the Acquisition.for acquisitions.
ESOP expense for the second quarter and first six months of fiscal 1995
increased $201,000, or 2%16% and 9%, to $12,500,000respectively, from $12,299,000 for the first quarter ofprevious fiscal 1994.year.
Stock option expense for the second quarter and first quartersix months of fiscal
1995 decreased from the previous year due to fluctuations in the market price of
the Company's common stock.
DuringIn March 1995, the Company and a group of insurance carriers resolved
disputes that arose in fiscal 1995 related to claims paid predominantly in the
1980's. As part of the resolution, the Company will pay the insurance carriers
$29.8 million in five installments over a three year period. The Company and
the insurance carriers intend to continue to do business with each other and
maintain business at the same or similar general levels. No existing agreement,
contract, joint venture, or other business relationship in existence at the time
of the settlement will be terminated or affected as a result of the settlement.
Furthermore, the parties will negotiate in good faith concerning additional
business opportunities. Also, in the first quarter of fiscal 1995, the Company
recorded an unusual item of approximately $3 million which represented the pre-taxpre-
tax gain on the sale of three psychiatric hospitals.
Liquidity and Sources of CapitalLIQUIDITY AND SOURCES OF CAPITAL
During the first threesix months of fiscal 1995, the Company incurred
approximately $4.3$74.4 million in capital expenditures, primarilyincluding $9.4 for routine
capital replacement. The Company also incurred expenditures of approximately
$42replacement and $65.0 million for the acquisition of the 13 NME facilities and $2.8 million for
the acquisitions of businesses related to the implementation of the Company's
new growth and expansion strategy.acquisitions. The capital outlays
were financed from borrowings under the Revolving Credit Agreement, proceeds
from the issuance of the Notes and from cash provided by operations. The
Company anticipates that capital expenditures for fiscal 1995 relating to
existing hospitals will be approximately $20 million and will be financed from
cash provided by operations.
The number of days gross patient revenue in gross patientpatients accounts
receivable was 6365 days at DecemberMarch 31, 19941995 and 62 days at September 30, 1994.
FORM 10-Q
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 4. - Submission of Matters to Vote of Security Holders.
The Company held an annual meeting of stockholders on March 9, 1995.
The tabulation of votes with respect to each matter voted upon at the
meeting is as follows:
Votes cast
--------------------------------
Authority Broker Non-
For Withheld Abstain Votes
--- --------- ------- -----------
Election of:
Andre C.
Dimitriadis as a
Director (term
expiring in 1998) 22,122,589 99,042 N/A N/A
Item 6. - Exhibits and Reports on Form 8-K
(a) Exhibits
3(a) Bylaws of the Company, as amended, effective March 9, 1995.
4(a) Amendment No. 5, dated as of March 17, 1995, to Second Amended
and Restated Credit Agreement, dated as of May 2, 1994, among the
Company, Bankers Trust Company, as Agent, First Union National
Bank of North Carolina, as Co-Agent, and the lenders listed on
Annex I.
27 Financial Data Schedule
(b) Report on Form 8-K
There were no current reports on Form 8-K filed by the Registrant
with the Securities and Exchange Commission during the quarter
ended March 31, 1995.
FORM 10-Q
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. - Exhibits and Reports on Form 8-K
(a) Exhibits
4(a) Amendment No. 3, dated as of December 12, 1994, to Second
Amended and Restated Credit Agreement, dated as of May 2,
1994, among the Company, the financial institutions listed
therein, Bankers Trust Company, as Agent, and First Union
National Bank of North Carolina, as Co-Agent.
4(b) Amendment No. 4, dated as of January 11, 1995, to Second
Amended and Restated Credit Agreement, dated as of May 2,
1994, among the Company, the financial institutions listed
therein, Bankers Trust Company, as Agent, and First Union
National Bank of North Carolina, as Co-Agent.
4(c) Indenture Supplement No. 1, dated June 3, 1994, among the
Company, the Guarantors listed therein and Marine Midland
Bank, as Trustee, relating to the 11.25% Senior Subordinated
Notes due April 15, 2004, together with a schedule identifying
substantially similar documents, pursuant to Instruction 2 to
Item 601 of Regulation S-K.
(b) Report on Form 8-K
On December 15, 1994, the Company filed a Form 8-K dated November 30,
1994 disclosing the acquisition of substantially all the assets of 10
behavioral healthcare facilities from National Medical Enterprises,
Inc.
FORM 10-Q
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHARTER MEDICAL CORPORATION
(Registrant)
Date: February 14, 1995
FORM 10-Q
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHARTER MEDICAL CORPORATION
---------------------------
(Registrant)
Date: ____________________________ /s/ Lawrence W. Drinkard
----------------------------
Lawrence W. Drinkard
Executive Vice President - Finance
(Chief Financial Officer)
Date: ____________________________ /s/ John R. Day
-----------------------------
John R. Day
Vice President and Controller
(Principal Accounting Officer)
FORM 10-Q
CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHARTER MEDICAL CORPORATION
---------------------------
(Registrant)
Date: ____________________________ ----------------------------
Lawrence W. Drinkard
Executive Vice President - Finance
(Chief Financial Officer)
Date: ____________________________ ----------------------------
John R. Day
Vice President and Controller
(Principal Accounting Officer)
Date: February 14, 1995 /s/ John R. Day
John R. Day
Vice President and Controller
(Principal Accounting Officer)