Exhibit 99.1
The Providence Service Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Six months ended June 30, | ||||||||
2015 | 2014 | |||||||
Operating activities | ||||||||
Net income | $ | 12,871 | $ | 12,959 | ||||
Adjustments to reconcile net income to net cashprovided by operating activities: | ||||||||
Depreciation | 10,165 | 4,908 | ||||||
Amortization | 19,692 | 3,963 | ||||||
Provision for doubtful accounts | 1,369 | 1,089 | ||||||
Stock based compensation | 6,058 | 1,400 | ||||||
Deferred income taxes | (4,815 | ) | 207 | |||||
Amortization of deferred financing costs | 1,071 | 410 | ||||||
Excess tax benefit upon exercise of stock options | (2,239 | ) | (2,346 | ) | ||||
Loss on equity investments | 3,542 | - | ||||||
Other non-cash charges | (225 | ) | (40 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (60,908 | ) | (21,736 | ) | ||||
Other receivables | (2,617 | ) | 487 | |||||
Restricted cash | 69 | 205 | ||||||
Prepaid expenses and other | (8,734 | ) | (4,544 | ) | ||||
Reinsurance liability reserve | 9,691 | 4,648 | ||||||
Accounts payable and accrued expenses | 17,755 | 7,172 | ||||||
Accrued transportation costs | 6,022 | 13,554 | ||||||
Deferred revenue | 14,555 | (52 | ) | |||||
Other long-term liabilities | 281 | (4,009 | ) | |||||
Net cash provided by operating activities | 23,603 | 18,275 | ||||||
Investing activities | ||||||||
Purchase of property and equipment | (13,122 | ) | (8,267 | ) | ||||
Acquisitions, net of cash acquired | (1,665 | ) | (59,666 | ) | ||||
Equity investments | (13,784 | ) | - | |||||
Net decrease in short-term investments | (9 | ) | (9 | ) | ||||
Restricted cash for reinsured claims losses | (413 | ) | (4,744 | ) | ||||
Net cash used in investing activities | (28,993 | ) | (72,686 | ) | ||||
Financing activities | ||||||||
Proceeds from issuance of preferred stock, net of issuance costs | 80,667 | - | ||||||
Preferred stock dividends | (1,698 | ) | - | |||||
Repurchase of common stock, for treasury | (734 | ) | (501 | ) | ||||
Proceeds from common stock issued pursuant to stockoption exercise | 2,377 | 9,150 | ||||||
Excess tax benefit upon exercise of stock options | 2,239 | 2,346 | ||||||
Proceeds from long-term debt | - | 115,000 | ||||||
Repayment of long-term debt | (87,125 | ) | (47,500 | ) | ||||
Payment of contingent consideration | (7,496 | ) | - | |||||
Debt financing costs | (30 | ) | (700 | ) | ||||
Other | (46 | ) | (8 | ) | ||||
Net cash (used in) provided by financing activities | (11,846 | ) | 77,787 | |||||
Effect of exchange rate changes on cash | 1,991 | 629 | ||||||
Net change in cash | (15,245 | ) | 24,005 | |||||
Cash at beginning of period | 160,406 | 98,995 | ||||||
Cash at end of period | $ | 145,161 | $ | 123,000 |