Exhibit 99.1
IASIS Healthcare Announces Second Quarter 2004 Results
FRANKLIN, Tenn.--(BUSINESS WIRE)--May 3, 2004--IASIS Healthcare(R)
Corporation today announced financial and operating results for the
second quarter and six months ended March 31, 2004.
Net revenue for the quarter ended March 31, 2004, increased 31.0%
to $355.5 million compared with $271.4 million in the same quarter of
last year. Earnings before interest expense, gain on sale of assets,
minority interests, income taxes, depreciation and amortization and
write-off of debt issue costs (adjusted EBITDA) for the second quarter
increased 22.1% to $50.2 million compared with $41.1 million in the
prior-year period. Net earnings were $11.9 million for the quarter
ended March 31, 2004, compared with net earnings of $10.9 million in
the same prior-year period. In the second quarter of fiscal year 2004,
the Company recorded an $8.9 million non-cash charge for the write-off
of deferred financing costs associated with an amendment to its senior
credit facility effective February 9, 2004. Also during the quarter,
the Company completed the sale of its Rocky Mountain Medical Center
property in Salt Lake City, Utah, for net proceeds of $14.7 million.
Net earnings for the quarter includes a net gain from this sale of
$3.6 million. A table reconciling net earnings to adjusted EBITDA is
included in this press release in the attached Supplemental Condensed
and Consolidated Statements of Operations Information.
Effective February 1, 2004, the Company completed the acquisition
of 198-bed Lake Mead Hospital Medical Center in Las Vegas, Nevada. The
results of operations for Lake Mead are included in the Company's
results of operations from the date of the acquisition. Total hospital
admissions increased 9.9% and adjusted admissions increased 5.2% for
the quarter ended March 31, 2004, compared with the same prior-year
period. On a same facility basis, hospital admissions increased 3.6%,
adjusted admissions increased 0.3% and net patient revenue per
adjusted admission increased 15.1% for the quarter ended March 31,
2004, compared with the same prior-year period.
In commenting on the quarterly results, David R. White, chairman,
president and chief executive officer of IASIS Healthcare, said, "Our
second quarter results continue the positive momentum from the first
quarter and reflect the ninth consecutive quarter of sustained growth
in net revenue and adjusted EBITDA. Our success is being driven by our
investment in existing facilities, physician recruiting initiatives,
emphasis on productivity and focused accounts receivable management.
Our ability to manage operations was again demonstrated by a record
quarter for cash flow from operating activities. We are excited to
have completed our first acquisition since the formation of the
Company and to welcome Lake Mead to IASIS. We appreciate the
tremendous support of the hospital's physicians, nurses and employees
in completing the transaction and making a seamless transition. We are
especially pleased to extend our operations into the Las Vegas market,
and we look forward to serving that community in the years ahead."
Net revenue for the six months ended March 31, 2004, increased
28.0% to $673.6 million compared with $526.2 million in the same
period of last year. Adjusted EBITDA for the six months ended March
31, 2004, increased 21.2% to $89.9 million compared with $74.2 million
in the first half of fiscal year 2003. Net earnings were $20.1 million
for the six months ended March 31, 2004, compared with net earnings of
$18.4 million in the same prior-year period.
Total hospital admissions increased 7.7% and adjusted admissions
increased 3.5% for the six months ended March 31, 2004, compared with
the same prior-year period. On a same facility basis, hospital
admissions increased 4.4%, adjusted admissions increased 1.1% and net
patient revenue per adjusted admission increased 14.1% for the six
months ended March 31, 2004, compared with the same prior-year period.
Cash flows from operating activities for the quarter and six
months ended March 31, 2004, were $50.3 million and $63.2 million,
respectively, compared with $43.8 million and $52.1 million,
respectively, in the prior-year periods. At March 31, 2004, the
Company had cash of $98.8 million and $88.3 million (net of
outstanding letters of credit) available under the Company's $125
million revolving credit facility.
During the quarter, the Company finalized an amendment to its bank
credit facility. The amendment revised certain terms of the Company's
existing credit facility, including, among other things, a reduction
in the interest rate margin on term loans by 1.5% and an increase in
the capital expenditure limitation beginning in 2005. As of March 31,
2004, the credit agreement included a $321 million term loan and a
$125 million revolving credit facility.
A listen-only simulcast and 30-day replay of IASIS Healthcare
Corporation's fiscal second quarter conference call will be available
by clicking the "For Investors" link on the Company's website at
www.iasishealthcare.com beginning at 11:00 a.m. Eastern Time on May 3,
2004. A copy of the Company's Form 8-K (including the press release)
will also be available on the Company's website.
IASIS Healthcare(R) Corporation, located in Franklin, Tennessee,
is a leading owner and operator of medium-sized acute care hospitals
in high-growth urban and suburban markets. The Company operates its
hospitals with a strong community focus by offering and developing
healthcare services to meet the needs of the markets it serves,
promoting strong relationships with physicians and working with local
managed care plans. IASIS Healthcare(R) owns or leases 15 acute care
hospitals with a total of 2,257 beds in service. These hospitals are
located in five regions: Salt Lake City, UT; Phoenix, AZ; Las Vegas,
NV; Tampa-St. Petersburg, FL; and four cities in Texas, including San
Antonio. IASIS Healthcare(R) also owns and operates a behavioral
health center in Phoenix and has an ownership interest in three
ambulatory surgery centers. In addition, the Company owns and operates
a Medicaid managed health plan in Phoenix that serves over 92,000
members. For more information on IASIS Healthcare(R) Corporation,
please visit the Company's website at www.iasishealthcare.com.
This press release contains forward-looking statements within the
meaning of the federal securities laws, which are intended to be
covered by the safe harbors created thereby. These forward-looking
statements include all statements that are not historical statements
of fact and those regarding our intent, belief or expectations
including, but not limited to, the discussions of our operating and
growth strategy (including possible acquisitions and dispositions),
projections of revenue, income or loss, and future operations.
Forward-looking statements involve risks and uncertainties including,
without limitation, those associated with our ability to negotiate
favorable contracts with managed care plans; changes in governmental
programs; increases in the amount and risk of collectibility of
uninsured accounts and deductibles and co-pay amounts for insured
accounts; the competition for patients that our hospitals face from
other hospitals and healthcare providers; our ability to recruit and
retain qualified physicians; the competition for staffing that our
hospitals face; our significant indebtedness; any failure on our part
to comply with extensive laws and government regulations; the impact
of possible government investigations; a failure of our information
systems; any economic downturn or other material change in one of the
regions in which we operate; claims that may be brought against our
facilities; our ability to control healthcare costs at our Medicaid
managed care plan, Health Choice; the possibility that Health Choice's
contract with the Arizona Health Care Cost Containment System could be
discontinued; significant competition from other healthcare companies
and state efforts to regulate the sale of not-for-profit hospitals
that may affect our ability to acquire hospitals; difficulties with
the integration of acquisitions; state efforts to regulate the
construction or expansion of hospitals; general economic and business
conditions; and those risks, uncertainties and other matters detailed
in our Annual Report on Form 10-K for the fiscal year ended September
30, 2003, and from time to time in our filings with the Securities and
Exchange Commission.
Although we believe that the assumptions underlying the
forward-looking statements contained in this press release are
reasonable, any of these assumptions could prove to be inaccurate,
and, therefore, there can be no assurance that the forward-looking
statements included in this press release will prove to be accurate.
In light of the significant uncertainties inherent in the
forward-looking statements included herein, you should not regard the
inclusion of such information as a representation by the Company or
any other person that our objectives and plans will be achieved. We
undertake no obligation to publicly release any revisions to any
forward-looking statements contained herein to reflect events and
circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events.
IASIS HEALTHCARE CORPORATION
Condensed and Consolidated Statements of Operations (Unaudited)
(in thousands)
Three Months Ended Six Months Ended
March 31, March 31,
------------------ ------------------
2004 2003 2004 2003
-------- -------- -------- --------
Net revenue:
Acute care net revenue $286,214 $234,177 $535,603 $451,994
Premium revenue 69,301 37,259 138,016 74,207
-------- -------- -------- --------
Total net revenue 355,515 271,436 673,619 526,201
Cost and expenses:
Salaries and benefits 110,487 94,153 209,903 182,952
Supplies 46,301 37,768 86,580 73,451
Medical claims 57,880 31,098 115,651 61,999
Other operating expenses 58,467 47,191 114,294 93,704
Provision for bad debts 32,169 20,154 57,268 39,865
Interest, net 13,878 13,131 27,769 26,448
Depreciation and amortization 17,248 12,682 33,979 25,533
Write-off of debt issue costs 8,850 3,900 8,850 3,900
-------- -------- -------- --------
Total costs and expenses 345,280 260,077 654,294 507,852
Earnings before gain on sale
of assets, minority interests,
and income taxes 10,235 11,359 19,325 18,349
Gain on sale of assets, net 3,602 -- 3,753 780
Minority interests (1,033) (421) (2,024) (699)
-------- -------- -------- --------
Earnings before income taxes 12,804 10,938 21,054 18,430
Income tax expense 953 -- 985 --
-------- -------- -------- --------
Net earnings $11,851 $10,938 $20,069 $18,430
======== ======== ======== ========
IASIS HEALTHCARE CORPORATION
Condensed and Consolidated Balance Sheets
(in thousands except share amounts)
March 31, Sept. 30,
2004 2003
---------- ----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $98,795 $101,070
Accounts receivable, net of allowance
for doubtful accounts of $79,775 and
$47,028, respectively 175,909 153,183
Inventories 26,507 23,842
Prepaid expenses and other current assets 19,076 16,316
Assets held for sale -- 11,070
---------- ----------
Total current assets 320,287 305,481
Property and equipment, net 481,719 435,477
Goodwill 252,204 252,204
Other assets, net 28,995 36,837
---------- ----------
Total assets $1,083,205 $1,029,999
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $62,920 $54,172
Salaries and benefits payable 30,483 29,842
Accrued interest payable 19,468 20,978
Medical claims payable 45,288 25,767
Other accrued expenses and other
current liabilities 24,734 20,529
Current portion of long-term debt and
capital lease obligations 6,357 5,903
---------- ----------
Total current liabilities 189,250 157,191
Long-term debt and capital lease obligations 656,415 658,531
Other long-term liabilities 28,981 27,795
Minority interest 12,391 10,383
Stockholders' equity:
Preferred stock - $0.01 par value, authorized
5,000,000 shares; no shares issued and
outstanding at March 31, 2004 and
September 30, 2003 -- --
Common stock - $0.01 par value, authorized
100,000,000 shares; 31,985,029 shares
issued and 31,956,113 shares outstanding
at March 31, 2004, and September 30, 2003 320 320
Nonvoting common stock - $0.01 par value,
authorized 10,000,000 shares; no shares
issued and outstanding at March 31, 2004,
and September 30, 2003 -- --
Additional paid-in capital 450,720 450,720
Treasury stock, at cost, 16,306,541 shares
at March 31, 2004 and September 30, 2003 (155,300) (155,300)
Accumulated deficit (99,572) (119,641)
---------- ----------
Total stockholders' equity 196,168 176,099
---------- ----------
Total liabilities and stockholders' equity $1,083,205 $1,029,999
========== ==========
IASIS HEALTHCARE CORPORATION
Condensed and Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended
March 31,
2004 2003
---------- ----------
Cash flows from operating activities:
Net earnings $20,069 $18,430
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 33,979 25,533
Minority interests 2,024 699
Gain on sale of assets (3,753) (780)
Write-off of debt issue costs 8,850 3,900
Changes in operating assets and liabilities,
net of acquisition and disposal:
Accounts receivable (12,388) (1,340)
Establishment of accounts receivable
of recent acquisition (10,338) --
Inventories, prepaid expenses
and other current assets (3,645) (916)
Accounts payable and other
accrued liabilities 28,439 6,583
---------- ----------
Net cash provided by
operating activities 63,237 52,109
---------- ----------
Cash flows from investing activities:
Purchases of property and equipment (51,524) (36,520)
Cash paid for acquisition (23,032) --
Proceeds from sales of assets 14,928 2,863
Change in other assets (1,761) (1,732)
---------- ----------
Net cash used in investing activities (61,389) (35,389)
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of common stock -- 2
Proceeds from debt borrowings -- 454,100
Payment of debt and capital leases (3,083) (453,450)
Debt financing costs incurred (1,024) (10,600)
Distribution of minority interests (1,817) (410)
Proceeds from hospital syndications 1,801 --
---------- ----------
Net cash used in financing activities (4,123) (10,358)
---------- ----------
Increase (decrease) in cash
and cash equivalents (2,275) 6,362
Cash and cash equivalents
at beginning of period 101,070 --
---------- ----------
Cash and cash equivalents at end of period $98,795 $6,362
========== ==========
Supplemental disclosure
of cash flow information:
Cash paid for interest $30,553 $24,789
========== ==========
Cash paid for income taxes, net $21 $6
========== ==========
Supplemental schedule of noncash investing
and financing activities:
Capital lease obligations incurred
to acquire equipment $1,419 $3,318
========== ==========
IASIS HEALTHCARE CORPORATION
Segment Information (Unaudited)
(in thousands)
For the Three Months Ended March 31, 2004
-------------------------------------------
Acute Health
Care Choice Elims. Cons.
---------- ---------- ---------- ----------
Net acute care revenue $286,213 $-- $-- $286,213
Premium revenue -- 69,302 -- 69,302
Revenue between segments 2,335 -- (2,335) --
---------- ---------- ---------- ----------
Net revenue 288,548 69,302 (2,335) 355,515
Salaries and benefits 108,147 2,340 -- 110,487
Supplies 46,251 50 -- 46,301
Medical claims -- 60,215 (2,335) 57,880
Other operating expenses 55,894 2,573 -- 58,467
Provision for bad debts 32,169 -- -- 32,169
---------- ---------- ---------- ----------
Adjusted EBITDA (1) 46,087 4,124 -- 50,211
Interest expense, net 13,878 -- -- 13,878
Depreciation and
amortization 17,203 45 -- 17,248
Write-off of debt
issue costs 8,850 -- -- 8,850
---------- ---------- ---------- ----------
Earnings before gain on
sale of assets, minority
interests and taxes $6,156 $4,079 $-- $10,235
Gain on sale of
assets, net 3,602 -- -- 3,602
Minority interests (1,033) -- -- (1,033)
---------- ---------- ---------- ----------
Earnings before
income taxes $8,725 $4,079 $-- $12,804
========== ========== ========== ==========
Segment assets $1,076,737 $6,468 $1,083,205
========== ========== ==========
For the Three Months Ended March 31, 2003
-------------------------------------------
Acute Health
Care Choice Elims. Cons.
---------- ---------- ---------- ----------
Net acute care revenue $234,177 $-- $-- $234,177
Premium revenue -- 37,259 -- 37,259
Revenue between segments 1,625 -- (1,625) --
---------- ---------- --------- ----------
Net revenue 235,802 37,259 (1,625) 271,436
Salaries and benefits 92,495 1,658 -- 94,153
Supplies 37,663 105 -- 37,768
Medical claims -- 32,723 (1,625) 31,098
Other operating expenses 46,530 661 -- 47,191
Provision for bad debts 20,154 -- -- 20,154
---------- ---------- ---------- ----------
Adjusted EBITDA (1) 38,960 2,112 -- 41,072
Interest expense, net 13,131 -- -- 13,131
Depreciation and
amortization 12,653 29 -- 12,682
Write-off of debt
issue costs 3,900 -- -- 3,900
---------- ---------- ---------- ----------
Earnings before minority
interests and taxes $9,276 $2,083 $-- $11,359
Minority interests (421) -- -- (421)
---------- ---------- ---------- ----------
Earnings before
income taxes $8,855 $2,083 $-- $10,938
========== ========== ========== ==========
Segment assets $922,043 $3,691 $925,734
========== ========== ==========
(1) Adjusted EBITDA represents net earnings before interest expense,
gain on sale of assets, minority interests, income taxes,
depreciation and amortization and write-off of debt issue costs.
Management routinely calculates and communicates adjusted EBITDA
and believes that it is useful to investors because it is
commonly used as an analytical indicator within the healthcare
industry to evaluate hospital performance, allocate resources and
measure leverage capacity and debt service ability. In addition,
the Company uses adjusted EBITDA as a measure of performance for
its business segments and for incentive compensation purposes.
Adjusted EBITDA should not be considered as a measure of
financial performance under generally accepted accounting
principles (GAAP), and the items excluded from adjusted EBITDA
are significant components in understanding and assessing
financial performance. Adjusted EBITDA should not be considered
in isolation or as an alternative to net income, cash flows
generated by operating, investing, or financing activities or
other financial statement data presented in the consolidated
financial statements as an indicator of financial performance or
liquidity. Adjusted EBITDA, as presented, may not be comparable
to similarly titled measures of other companies.
IASIS HEALTHCARE CORPORATION
Segment Information (Unaudited)
(in thousands)
For the Six Months Ended March 31, 2004
-------------------------------------------
Acute Health
Care Choice Elims. Cons.
---------- ---------- ---------- ----------
Net acute care revenue $535,603 $-- $-- $535,603
Premium revenue -- 138,016 -- 138,016
Revenue between segments 5,314 -- (5,314) --
---------- ---------- ---------- ----------
Net revenue 540,917 138,016 (5,314) 673,619
Salaries and benefits 205,390 4,513 -- 209,903
Supplies 86,488 92 -- 86,580
Medical claims -- 120,965 (5,314) 115,651
Other operating expenses 109,037 5,257 -- 114,294
Provision for bad debts 57,268 -- -- 57,268
---------- ---------- ---------- ----------
Adjusted EBITDA (1) 82,734 7,189 -- 89,923
Interest expense, net 27,769 -- -- 27,769
Depreciation and
amortization 33,893 86 -- 33,979
Write-off of debt
issue costs 8,850 -- -- 8,850
---------- ---------- ---------- ----------
Earnings before gain on
sale of assets, minority
interests and taxes $12,222 $7,103 $-- $19,325
Gain on sale of
assets, net 3,753 -- -- 3,753
Minority interests (2,024) -- -- (2,024)
---------- ---------- ---------- ----------
Earnings before
income taxes $13,951 $7,103 $-- $21,054
========== ========== ========== ==========
Segment assets $1,076,737 $6,468 $1,083,205
========== ========== ==========
For the Six Months Ended March 31, 2003
-------------------------------------------
Acute Health
Care Choice Elims. Cons.
---------- ---------- ---------- ----------
Net acute care revenue $451,994 $-- $-- $451,994
Premium revenue -- 74,207 -- 74,207
Revenue between segments 3,533 -- (3,533) --
---------- ---------- ---------- ----------
Net revenue 455,527 74,207 (3,533) 526,201
Salaries and benefits 179,738 3,214 -- 182,952
Supplies 73,224 227 -- 73,451
Medical claims -- 65,532 (3,533) 61,999
Other operating expenses 92,413 1,291 -- 93,704
Provision for bad debts 39,865 -- -- 39,865
---------- ---------- ---------- ----------
Adjusted EBITDA (1) 70,287 3,943 -- 74,230
Interest expense, net 26,448 -- -- 26,448
Depreciation and
amortization 25,471 62 -- 25,533
Write-off of debt
issue costs 3,900 -- -- 3,900
---------- ---------- ---------- ----------
Earnings before gain on
sale of assets, minority
interests and taxes $14,468 $3,881 $-- $18,349
Gain on sale of
assets, net 780 -- -- 780
Minority interests (699) -- -- (699)
---------- ---------- ---------- ----------
Earnings before
income taxes $14,549 $3,881 $-- $18,430
========== ========== ========== ==========
Segment assets $922,043 $3,691 $925,734
========== ========== ==========
(1) Adjusted EBITDA represents net earnings before interest expense,
gain on sale of assets, minority interests, income taxes,
depreciation and amortization and write-off of debt issue costs.
Management routinely calculates and communicates adjusted EBITDA
and believes that it is useful to investors because it is
commonly used as an analytical indicator within the healthcare
industry to evaluate hospital performance, allocate resources and
measure leverage capacity and debt service ability. In addition,
the Company uses adjusted EBITDA as a measure of performance for
its business segments and for incentive compensation purposes.
Adjusted EBITDA should not be considered as a measure of
financial performance under generally accepted accounting
principles (GAAP), and the items excluded from adjusted EBITDA
are significant components in understanding and assessing
financial performance. Adjusted EBITDA should not be considered
in isolation or as an alternative to net income, cash flows
generated by operating, investing, or financing activities or
other financial statement data presented in the consolidated
financial statements as an indicator of financial performance or
liquidity. Adjusted EBITDA, as presented, may not be comparable
to similarly titled measures of other companies.
IASIS HEALTHCARE CORPORATION
Financial and Operating Data (Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
------------------ ------------------
2004 2003 2004 2003
-------- -------- -------- --------
Consolidated Hospitals:
Number of hospitals
at end of period 15 14 15 14
Beds in service at
end of period 2,257 2,022 2,257 2,022
Average length of stay (days) 4.52 4.56 4.42 4.48
Occupancy rates (average
beds in service) 54.1% 54.2% 51.5% 50.8%
Admissions 23,804 21,650 44,873 41,684
Percentage change 9.9% 7.7%
Adjusted admissions 37,117 35,299 71,844 69,396
Percentage change 5.2% 3.5%
Patient days 107,518 98,677 198,129 186,825
Adjusted patient days 162,221 154,458 305,813 297,760
Outpatient revenue as a %
of gross patient revenue 32.3% 35.8% 33.9% 36.9%
Same Facility (1):
Number of hospitals
at end of period 14 14 14 14
Beds in service at
end of period 2,081 2,022 2,081 2,022
Net acute care revenue
(in millions) $272.5 $235.8 $524.9 $455.5
Percentage change 15.6% 15.2%
Average length of stay (days) 4.50 4.56 4.40 4.48
Occupancy rates (average
beds in service) 53.7% 54.2% 51.2% 50.8%
Admissions 22,438 21,650 43,507 41,684
Percent change 3.6% 4.4%
Adjusted admissions 35,405 35,299 70,133 69,396
Percent change 0.3% 1.1%
Patient days 100,919 98,677 191,530 186,825
Adjusted patient days 153,953 154,458 297,545 297,760
Outpatient revenue as a %
of gross patient revenue 33.4% 35.8% 34.5% 36.9%
(1) Excludes Lake Mead Hospital Medical Center acquired in the second
quarter of 2004 with 176 beds in service.
IASIS HEALTHCARE CORPORATION
Supplemental Condensed and Consolidated Statements
of Operations Information (Unaudited)
(in thousands)
Three Months Ended Six Months Ended
March 31, March 31,
------------------ ------------------
2004 2003 2004 2003
-------- -------- -------- --------
Consolidated Results:
Net earnings $11,851 $10,938 $20,069 $18,430
Add:
Income tax expense 953 -- 985 --
Interest expense, net 13,878 13,131 27,769 26,448
Minority interests 1,033 421 2,024 699
Gain on sale of assets, net (3,602) -- (3,753) (780)
Depreciation and amortization 17,248 12,682 33,979 25,533
Write-off of debt issue costs 8,850 3,900 8,850 3,900
-------- -------- -------- --------
Adjusted EBITDA (1) $50,211 $41,072 $89,923 $74,230
======== ======== ======== ========
(1) Adjusted EBITDA represents net earnings before interest expense,
gain on sale of assets, minority interests, income taxes,
depreciation and amortization and write-off of debt issue costs.
Management routinely calculates and communicates adjusted EBITDA
and believes that it is useful to investors because it is
commonly used as an analytical indicator within the healthcare
industry to evaluate hospital performance, allocate resources and
measure leverage capacity and debt service ability. In addition,
the Company uses adjusted EBITDA as a measure of performance for
its business segments and for incentive compensation purposes.
Adjusted EBITDA should not be considered as a measure of
financial performance under generally accepted accounting
principles (GAAP), and the items excluded from adjusted EBITDA
are significant components in understanding and assessing
financial performance. Adjusted EBITDA should not be considered
in isolation or as an alternative to net income, cash flows
generated by operating, investing, or financing activities or
other financial statement data presented in the consolidated
financial statements as an indicator of financial performance or
liquidity. Adjusted EBITDA, as presented, may not be comparable
to similarly titled measures of other companies.
CONTACT: IASIS Healthcare Corporation, Franklin
Investor contact:
David R. White or W. Carl Whitmer, 615-844-2747
or
News media contact:
Tomi Galin, 615-467-1255