Exhibit 99.1
Summary of Historical Condensed Consolidated Financial Information
The summary historical consolidated financial and other data presented below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the related notes thereto contained in our Current Report on Form 8-K filed on June 4, 2009 (which retrospectively adjusted the audited Financial Statements and Supplemental Data in our Annual Report on Form 10-K for the year ended December 31, 2008) and the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009, which are incorporated by reference herein. The summary historical consolidated financial data and other data set forth below for, and as of the end of the fiscal years ended December 31, 2006, 2007 and 2008 have been derived from our audited consolidated financial statements. The summary historical consolidated financial data and other data set forth below for, and as of the end of the three month periods ended March 31, 2008 and 2009 have been derived from our unaudited consolidated financial statements and have been prepared on the same basis as the audited consolidated financial statements included elsewhere herein. In the opinion of management, the interim data reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of results for these periods. Operating results for the three month period ended March 31, 2009 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2009.
Year Ended December 31, | Three Months Ended March 31, | Twelve Months Ended March 31, 2009 | ||||||||||||||||||||||
2006 | 2007 | 2008 | 2008 | 2009 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||
Product revenues | $ | 1,822,141 | $ | 1,970,106 | $ | 2,224,704 | $ | 543,261 | $ | 563,080 | $ | 2,244,523 | ||||||||||||
Service revenues | 989,242 | 1,030,672 | 1,079,473 | 267,346 | 279,481 | 1,091,608 | ||||||||||||||||||
Total revenues | 2,811,383 | 3,000,778 | 3,304,177 | 810,607 | 842,561 | 3,336,131 | ||||||||||||||||||
Cost of products | 1,753,638 | 1,925,547 | 2,163,943 | 532,027 | 551,585 | 2,183,501 | ||||||||||||||||||
Cost of services: | ||||||||||||||||||||||||
Operating compensation and benefits | 458,006 | 479,177 | 523,939 | 130,188 | 137,640 | 531,391 | ||||||||||||||||||
Other operating costs | 274,665 | 293,677 | 321,947 | 76,796 | 80,696 | 325,847 | ||||||||||||||||||
Depreciation and amortization | 69,351 | 73,159 | 72,790 | 18,601 | 17,565 | 71,754 | ||||||||||||||||||
Total cost of services | 802,022 | 846,013 | 918,676 | 225,585 | 235,901 | 928,992 | ||||||||||||||||||
Total cost of products and services | 2,555,660 | 2,771,560 | 3,082,619 | 757,612 | 787,486 | 3,112,493 | ||||||||||||||||||
General and administrative expense | 76,948 | 84,326 | 76,883 | 19,988 | 18,131 | 75,026 | ||||||||||||||||||
Impairment, restructuring and other charges, net | — | 15,126 | 384,929 | 381,306 | 1,409 | 5,032 | ||||||||||||||||||
Depreciation and amortization | 13,983 | 16,172 | 30,017 | 7,153 | 7,533 | 30,397 | ||||||||||||||||||
Total costs and expenses | 2,646,591 | 2,887,184 | 3,574,448 | 1,166,059 | 814,559 | 3,222,948 | ||||||||||||||||||
Income (loss) from operations | 164,792 | 113,594 | (270,271 | ) | (355,452 | ) | 28,002 | 113,183 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense, net | (92,870 | ) | (95,342 | ) | (92,757 | ) | (24,200 | ) | (22,622 | ) | (91,179 | ) | ||||||||||||
Other income (expense), net | — | — | 2,213 | 1,371 | — | 842 | ||||||||||||||||||
Income (loss) before income taxes | 71,922 | 18,252 | (360,815 | ) | (378,281 | ) | 5,380 | 22,846 | ||||||||||||||||
Income tax (provision) benefit | (27,509 | ) | (7,447 | ) | (6,351 | ) | 922 | (3,604 | ) | (10,877 | ) | |||||||||||||
Net income (loss) | 44,413 | 10,805 | (367,166 | ) | (377,359 | ) | 1,776 | 11,969 | ||||||||||||||||
Less: Net income attributable to non-controlling interests | (2,388 | ) | (3,619 | ) | (3,324 | ) | (715 | ) | (759 | ) | (3,368 | ) | ||||||||||||
Net income (loss) attributable to the Company | $ | 42,025 | $ | 7,186 | $ | (370,490 | ) | $ | (378,074 | ) | $ | 1,017 | $ | 8,601 | ||||||||||
Other Financial Data: | ||||||||||||||||||||||||
EBITDA(1) | $ | 250,275 | $ | 203,678 | $ | (165,361 | ) | $ | (329,143 | ) | $ | 53,669 | $ | 217,451 | ||||||||||
Adjusted EBITDA(2) | 250,275 | 218,804 | 219,568 | 52,163 | 55,078 | 222,483 | ||||||||||||||||||
Capital Expenditures | 82,571 | 90,850 | 88,743 | 23,624 | 16,047 | 81,166 |
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Fiscal Year Ended December 31, | Three Months Ended March 31, | Twelve Months Ended March 31, 2009 | ||||||||||||||||||||||
2006 | 2007 | 2008 | 2008 | 2009 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Statement of Cash Flows Data: | ||||||||||||||||||||||||
Net cash provided by (used in) | ||||||||||||||||||||||||
Operating activities | $ | 43,639 | $ | 198,030 | $ | 141,487 | $ | 50,864 | $ | 31,027 | $ | 121,650 | ||||||||||||
Investing activities | (110,768 | ) | (93,170 | ) | (137,004 | ) | (57,416 | ) | (15,342 | ) | (94,930 | ) | ||||||||||||
Financing activities | 223,058 | (237,370 | ) | (49,263 | ) | (2,316 | ) | (11,318 | ) | (58,265 | ) | |||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||
Working capital | $ | 254,022 | $ | 202,232 | $ | 198,616 | $ | 165,279 | $ | 205,005 | ||||||||||||||
Total assets | 2,359,982 | 2,208,650 | 1,842,853 | 1,887,973 | 1,809,697 | |||||||||||||||||||
Long term debt, excluding current maturities | 1,069,664 | 1,031,569 | 1,061,133 | 1,056,498 | 1,053,867 | |||||||||||||||||||
Total liabilities | 1,765,093 | 1,641,110 | 1,633,866 | 1,697,850 | 1,603,235 | |||||||||||||||||||
Total Company Stockholder’s equity | 580,741 | 554,323 | 195,415 | 176,829 | 192,937 | |||||||||||||||||||
Key Operating Data: | ||||||||||||||||||||||||
Services Volume | ||||||||||||||||||||||||
Cancer centers (at end of period) | 80 | 77 | 80 | 79 | 80 | |||||||||||||||||||
Medical oncology visits | 9,793 | 10,028 | 10,816 | 10,572 | 11,274 | |||||||||||||||||||
Radiation treatments | 2,698 | 2,719 | 2,732 | 2,731 | 2,678 | |||||||||||||||||||
PET systems (at end of period) | 33 | 34 | 37 | 34 | 38 | |||||||||||||||||||
PET scans | 163 | 180 | 207 | 193 | 219 | |||||||||||||||||||
New patients enrolled in research studies | 2,723 | 3,050 | 3,447 | |||||||||||||||||||||
Affiliated physicians (at end of period) | 1,067 | 1,199 | 1,211 | 1,247 | 1,227 | |||||||||||||||||||
Physician practice affiliations | 112 | 132 | 112 | 66 | 50 | |||||||||||||||||||
Recruited physicians | 61 | 58 | 52 | 5 | 10 |
Twelve Months Ended March 31, 2009 | |||
(dollars in thousands) | |||
Adjusted Credit Statistics(3) | |||
Cash and cash equivalents (at end of period) | $ | 111,751 | |
Secured Debt(4) | 789,150 | ||
Total Debt(5) | 1,095,745 | ||
Total Net Debt(6) | 983,994 | ||
Interest Expense(7) | |||
EBITDA | 217,451 | ||
Adjusted EBITDA | 222,483 | ||
Ratio of Secured Debt to Adjusted EBITDA | 3.5x | ||
Ratio of Total Debt to Adjusted EBITDA | 4.9x | ||
Ratio of Total Net Debt to Adjusted EBITDA | 4.4x | ||
Ratio of Adjusted EBITDA to interest expense |
(1) | EBITDA is net income before interest, taxes, depreciation, amortization (including amortization of stock-based compensation), and other (income) expense. We believe EBITDA is a commonly applied measurement of financial performance. Adjusted EBITDA represents EBITDA adjusted for the various items described below. EBITDA and Adjusted EBITDA do not represent income or cash flows from operations, as these terms are defined under generally accepted accounting principles, and should not be considered as an alternative to net income as an indicator of our operating performance or to cash flows as a measure of liquidity. We believe that EBITDA and Adjusted EBITDA are useful to investors, since it can provide investors with additional information that is not directly available in a GAAP presentation. Each gives investors an indication of our liquidity and financial condition and each is used in evaluating the value of companies in general and in evaluating the liquidity of companies, their debt service obligations and their ability to service their indebtedness. EBITDA and Adjusted |
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EBITDA are a key tool used by management in assessing business performance and financial condition both with respect to our business as a whole and with respect to individual sites or product lines. EBITDA and Adjusted EBITDA as presented herein are not necessarily comparable to similarly titled measures reported by other companies. See our Current Report on Form 8-K filed on June 4, 2009 and the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009, both of which been incorporated by reference herein. The following sets forth a reconciliation of EBITDA to net income (loss) and Adjusted EBITDA to EBITDA. |
Year Ended December 31, | Three Months Ended March 31, | Twelve Months Ended March 31, 2009 | |||||||||||||||||||
2006 | 2007 | 2008 | 2008 | 2009 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Net income (loss) | $ | 44,413 | $ | 10,805 | $ | (367,166 | ) | $ | (377,359 | ) | $ | 1,776 | $ | 11,969 | |||||||
Interest expense, net | 92,870 | 95,342 | 92,757 | 24,200 | 22,622 | 91,179 | |||||||||||||||
Income tax provision (benefit) | 27,509 | 7,447 | 6,351 | (922 | ) | 3,604 | 10,877 | ||||||||||||||
Depreciation and amortization | 83,334 | 89,331 | 102,807 | 25,754 | 25,098 | 102,151 | |||||||||||||||
Amortization of stock compensation | 2,149 | 753 | 2,103 | 555 | 569 | 2,117 | |||||||||||||||
Other (income) expense, net | — | — | (2,213 | ) | (1,371 | ) | — | (842 | ) | ||||||||||||
EBITDA | $ | 250,275 | $ | 203,678 | $ | (165,361 | ) | $ | (329,143 | ) | $ | 53,669 | $ | 217,451 | |||||||
Impairment, restructuring and other charges | — | 15,126 | 384,929 | 381,306 | 1,409 | 5,032 | |||||||||||||||
Adjusted EBITDA | $ | 250,275 | $ | 218,804 | $ | 219,568 | $ | 52,163 | $ | 55,078 | $ | 222,483 | |||||||||
(2) | Adjusted EBITDA reflects EBITDA, less impairment, restructuring and other charges, net. |
(3) | These as adjusted statistics are calculated using historical financial data as adjusted to give effect to the offering of the notes and use of proceeds therefrom, as if each occurred on March 31, 2009, other than interest expense, EBITDA and the ratio of interest expense to EBITDA, which are calculated as if such transactions occurred on March 31, 2008. |
(4) | Secured debt consists of the notes offered hereby and our existing senior notes. There are no amounts outstanding under our existing senior secured revolving credit facility, which is also secured debt. |
(5) | Represents actual total debt of $1,067.4 million plus the notes offered hereby of $465.0 million less the amounts outstanding under our existing term loan of $436.7 million (which term loan is to be retired in connection with this offering). |
(6) | Represents total debt less cash and cash equivalents. |
(7) | Interest expense reflects the interest rate on the notes offered hereby and the revised interest rate on our existing senior secured revolving credit facility following the amendment to such facility entered into in connection with this offering. See “Description of Certain Other Indebtedness—Our Existing Senior Secured Revolving Credit Facility.” Each quarter point change in the assumed interest rate would result in a $1.2 million change in annual interest expense on the notes offered hereby. |
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