Exhibit 99.3
AXIA HEALTH MANAGEMENT, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Month Period Ended September 30, 2005
(Unaudited)
| | | | Nine Month | | | |
| | | | Period Ended | | | |
| | | | September 30, | | | |
| | | | 2005 | | | |
| | | | | | | | |
Revenues | | | | $ | 48,130,090 | | | |
| | | | | | | | |
Cost of services (exclusive of depreciation and | | | | | | | | |
amortization shown separately below) | | | | | (21,478,281 | ) | | |
| | | | | | | | |
Selling and general and administrative expenses | | | | | (17,448,949 | ) | | |
| | | | | | | | |
Depreciation and amortization | | | | | (2,471,506 | ) | | |
| | | | | | | | |
Interest expense | | | | | (2,545,882 | ) | | |
| | | | | | | | |
Interest income | | | | | 67,250 | | | |
| | | | | | | | |
Other income | | | | | 4,415 | | | |
| | | | | | | | |
Net earnings before income taxes | | | | | 4,257,137 | | | |
| | | | | | | | |
Income tax provision | | | | | (2,463,363 | ) | | |
| | | | | | | | |
Net earnings | | | | $ | 1,793,774 | | | |
1
AXIA HEALTH MANAGEMENT, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Month Period Ended September 30, 2005
Unaudited
| | | | Nine Month | | | |
| | | | Period Ended | | | |
| | | | September 30, | | | |
| | | | 2005 | | | |
| | | | | | | | |
CASH FLOWS FROM OPERATING | | | | | | | | |
ACTIVITIES | | | | | | | | |
Net earnings | | | | $ | 1,793,774 | | | |
Adjustments to reconcile net earnings | | | | | | | | |
to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization of property | | | | | 301,945 | | | |
Amortization of intangible assets and loan origination costs | | | | | 2,890,077 | | | |
Deferred income taxes | | | | | (3,392,772 | ) | | |
Increase (decrease) in cash resulting from changes in: | | | | | | | | |
Accounts receivable | | | | | (4,720,123 | ) | | |
Income taxes receivable | | | | | 150,000 | | | |
Inventory | | | | | (325,497 | ) | | |
Prepaid expenses | | | | | (578,431 | ) | | |
Deposits | | | | | 279,024 | | | |
Other current assets | | | | | (32,184 | ) | | |
Accounts payable | | | | | 2,231,007 | | | |
Accrued expenses | | | | | 586,715 | | | |
Accrued interest on notes payable | | | | | 102,885 | | | |
Deferred revenue | | | | | 634,521 | | | |
Income taxes payable | | | | | 1,285,100 | | | |
Medical claims payable | | | | | 914,746 | | | |
Customer deposits | | | | | (68,614 | ) | | |
| | | | | | | | |
Net cash provided by operating activities | | | | | 2,052,173 | | | |
| | | | | | | | |
CASH FLOWS FROM INVESTING | | | | | | | | |
ACTIVITIES | | | | | | | | |
Investment in certificate of deposit | | | | | (126,446 | ) | | |
Purchases of subsidiaries, net of cash acquired | | | | | (32,730,746 | ) | | |
Additional purchase cost of HCD | | | | | (2,996,909 | ) | | |
Additional purchase cost of AWH | | | | | (100,000 | ) | | |
Deposits to escrow | | | | | (4,200,000 | ) | | |
Purchases of property and equipment | | | | | (925,416 | ) | | |
Release of deposits in escrow | | | | | 3,096,909 | | | |
| | | | | | | | |
Net cash used in investing activities | | | | | (37,982,608 | ) | | |
(Continued)
2
AXIA HEALTH MANAGEMENT, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
Nine Month Period Ended September 30, 2005
Unaudited
| | | | Nine Month | | | |
| | | | Period Ended | | | |
| | | | September 30, | | | |
| | | | 2005 | | | |
| | | | | | | | |
CASH FLOWS FROM FINANCING | | | | | | | | |
ACTIVITIES | | | | | | | | |
Members’ capital contributions | | | | | 15,549,500 | | | |
Rollover membership interest | | | | | 1,567,440 | | | |
Payments made on notes payable | | | | | (3,520,000 | ) | | |
Proceeds from issuance of notes payable | | | | | 20,760,000 | | | |
| | | | | | | | |
Net cash provided by financing activities | | | | | 34,356,940 | | | |
| | | | | | | | |
| | | | | | | | |
NET DECREASE IN CASH | | | | | | | | |
AND CASH EQUIVALENTS | | | | | (1,573,495 | ) | | |
| | | | | | | | |
| | | | | | | | |
CASH AND CASH EQUIVALENTS, | | | | | | | | |
BEGINNING OF PERIOD | | | | | 2,939,840 | | | |
| | | | | | | | |
CASH AND CASH EQUIVALENTS, | | | | | | | | |
END OF PERIOD | | | | $ | 1,366,345 | | | |
| | | | | | | | |
3