|
Delaware
|
| |
8082
|
| |
82-3677704
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Steven Gartner
Michael Brandt Danielle Scalzo Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, New York 10019 Telephone: (212) 728-8000 |
| |
Marc Jaffe
Ian Schuman Latham & Watkins LLP 885 Third Avenue New York, New York 10022 Telephone: (212) 906-1200 |
|
| Large accelerated filer ☐ | | | Accelerated filer ☒ | | | Non-accelerated filer ☐ | | |
Smaller reporting company ☒
Emerging growth company ☒ |
|
| | |||||||||||
Title of Each Class of Securities to be Registered
|
| | |
Proposed Maximum
Aggregate Offering Price |
| | |
Amount of
Registration Fee |
| |||
Class A Common Stock, par value $0.0001 per share
|
| | |
$125,953,750(1)
|
| | | | $ | 16,348.80(1) | | |
| | |
Page
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Three Months
Ended March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |
(audited)
|
| ||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net revenue
|
| | | $ | 191,439 | | | | | $ | 119,498 | | | | | $ | 529,644 | | | | | $ | 345,278 | | | | | $ | 192,559 | | | | | $ | 174,316 | | |
Operating income
|
| | | $ | 9,311 | | | | | $ | 5,348 | | | | | $ | 29,697 | | | | | $ | 31,091 | | | | | $ | 16,088 | | | | | $ | 2,323 | | |
Net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (158) | | | | | $ | (5,800) | | | | | $ | (14,996) | | | | | $ | 23,260 | | | | | $ | 9,687 | | | | | $ | (4,183) | | |
Consolidated Statement of Cash Flow Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities
|
| | | $ | 24,380 | | | | | $ | 16,232 | | | | | $ | 60,418 | | | | | $ | 68,427 | | | | | $ | 45,931 | | | | | $ | 29,935 | | |
Net cash used in investing activities
|
| | | $ | (111,330) | | | | | $ | (26,179) | | | | | $ | (84,870) | | | | | $ | (96,284) | | | | | $ | (15,077) | | | | | $ | (2,676) | | |
Net cash provided by (used in) financing
activities |
| | | $ | 58,235 | | | | | $ | (369) | | | | | $ | 76,144 | | | | | $ | 48,769 | | | | | $ | (30,263) | | | | | $ | (27,580) | | |
(in thousands)
|
| |
March 31,
2020 |
| |
December 31,
|
| ||||||||||||||||||
|
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||
| | |
(unaudited)
|
| |
(audited)
|
| ||||||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 661,839 | | | | | $ | 546,122 | | | | | $ | 368,957 | | | | | $ | 111,984 | | |
Total long-term debt, including current portion
|
| | | $ | 466,169 | | | | | $ | 396,833 | | | | | $ | 134,185 | | | | | $ | 20,312 | | |
Total stockholders’ equity (deficit) / members’ equity (deficit).
|
| | | $ | (29,447) | | | | | $ | (29,248) | | | | | $ | 102,769 | | | | | $ | (637) | | |
| | |
Three Months
Ended March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||||||||||||||
EBITDA
|
| | | $ | 26,051 | | | | | $ | 18,198 | | | | | $ | 90,142 | | | | | $ | 77,569 | | | | | $ | 43,580 | | | | | $ | 28,886 | | |
Adjusted EBITDA
|
| | | $ | 30,460 | | | | | $ | 28,216 | | | | | $ | 123,021 | | | | | $ | 84,447 | | | | | $ | 45,035 | | | | | $ | 33,104 | | |
Adjusted EBITDA less Patient Equipment
Capex |
| | | $ | 17,493 | | | | | $ | 16,973 | | | | | $ | 75,600 | | | | | $ | 45,083 | | | | | $ | 19,186 | | | | | $ | 7,625 | | |
| | |
Three Months
Ended March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||||||||||||||
Net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (158) | | | | | $ | (5,800) | | | | | $ | (14,996) | | | | | $ | 23,260 | | | | | $ | 9,687 | | | | | $ | (4,183) | | |
Income attributable to noncontrolling interest
|
| | | | 424 | | | | | | 348 | | | | | | 2,111 | | | | | | 1,077 | | | | | | 580 | | | | | | 563 | | |
Interest expense excluding change in fair value of interest rate swaps.
|
| | | | 7,938 | | | | | | 3,558 | | | | | | 27,878 | | | | | | 8,000 | | | | | | 5,041 | | | | | | 5,761 | | |
Interest expense (income) – change in fair value of interest rate swaps
|
| | | | — | | | | | | 2,702 | | | | | | 11,426 | | | | | | (547) | | | | | | — | | | | | | — | | |
Income tax expense (benefit)
|
| | | | 1,107 | | | | | | 2,418 | | | | | | 1,156 | | | | | | (2,098) | | | | | | 249 | | | | | | (208) | | |
Depreciation
|
| | | | 16,740 | | | | | | 14,972 | | | | | | 62,567 | | | | | | 47,877 | | | | | | 27,816 | | | | | | 26,563 | | |
Loss from discontinued operations, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 207 | | | | | | 390 | | |
EBITDA | | | | | 26,051 | | | | | | 18,198 | | | | | | 90,142 | | | | | | 77,569 | | | | | | 43,580 | | | | | | 28,886 | | |
Loss on extinguishment of debt, net(a)
|
| | | | — | | | | | | 2,121 | | | | | | 2,121 | | | | | | 1,399 | | | | | | 324 | | | | | | — | | |
Equity-based compensation expense(b)
|
| | | | 2,223 | | | | | | 5,223 | | | | | | 11,070 | | | | | | 884 | | | | | | 49 | | | | | | 49 | | |
Transaction costs(c)
|
| | | | 2,858 | | | | | | 2,516 | | | | | | 15,984 | | | | | | 2,514 | | | | | | — | | | | | | — | | |
Severance(d) | | | | | 419 | | | | | | 141 | | | | | | 2,301 | | | | | | 1,920 | | | | | | 826 | | | | | | 430 | | |
Other non-recurring (income) expense(e)
|
| | | | (1,091) | | | | | | 17 | | | | | | 1,403 | | | | | | 161 | | | | | | 256 | | | | | | 3,739 | | |
Adjusted EBITDA
|
| | | | 30,460 | | | | | | 28,216 | | | | | | 123,021 | | | | | | 84,447 | | | | | | 45,035 | | | | | | 33,104 | | |
Less: Patient equipment capex(f)
|
| | | | (12,967) | | | | | | (11,243) | | | | | | (47,421) | | | | | | (39,364) | | | | | | (25,849) | | | | | | (25,479) | | |
Adjusted EBITDA less Patient Equipment Capex
|
| | | $ | 17,493 | | | | | $ | 16,973 | | | | | $ | 75,600 | | | | | $ | 45,083 | | | | | $ | 19,186 | | | | | $ | 7,625 | | |
(in thousands)
|
| |
AdaptHealth
Historical |
| |
Solara
Reclassified(1) |
| |
Pro Forma
Adjustments |
| |
Note 3
|
| |
AdaptHealth
Pro-Forma |
| ||||||||||||
Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 48,164 | | | | | $ | 21,579 | | | | | $ | 72,258 | | | |
(a)
|
| | | $ | 142,001 | | |
Accounts receivable, net
|
| | | | 118,651 | | | | | | 24,203 | | | | | | — | | | | | | | | | 142,854 | | |
Inventory | | | | | 17,968 | | | | | | 9,373 | | | | | | — | | | | | | | | | 27,341 | | |
Prepaid and other current assets
|
| | | | 9,759 | | | | | | 3,974 | | | | | | (867) | | | |
(b)
|
| | | | 12,866 | | |
Total current assets
|
| | |
|
194,542
|
| | | |
|
59,129
|
| | | |
|
71,391
|
| | | | | | |
|
325,062
|
| |
Equipment and other fixed assets, net
|
| | | | 87,301 | | | | | | 4,511 | | | | | | — | | | | | | | | | 91,812 | | |
Goodwill | | | | | 340,807 | | | | | | 110,355 | | | | | | 279,005 | | | |
(c)
|
| | | | 730,167 | | |
Intangible assets, net
|
| | | | — | | | | | | 53,170 | | | | | | (39,170) | | | |
(d)
|
| | | | 14,000 | | |
Other assets
|
| | | | 5,670 | | | | | | 70 | | | | | | — | | | | | | | | | 5,740 | | |
Deferred tax asset
|
| | | | 33,519 | | | | | | — | | | | | | — | | | | | | | | | 33,519 | | |
Total assets
|
| | | $ | 661,839 | | | | | $ | 227,235 | | | | | $ | 311,226 | | | | | | | | $ | 1,200,300 | | |
Liabilities and Stockholders’ Equity (Deficit)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 136,072 | | | | | $ | 28,158 | | | | | $ | (8,863) | | | |
(e)
|
| | | $ | 155,367 | | |
Current portion of capital lease obligations
|
| | | | 20,421 | | | | | | — | | | | | | — | | | | | | | | | 20,421 | | |
Current portion of long-term debt
|
| | | | 2,616 | | | | | | 1,660 | | | | | | 8,402 | | | |
(f)
|
| | | | 12,678 | | |
Contract Liabilities
|
| | | | 15,584 | | | | | | — | | | | | | — | | | | | | | | | 15,584 | | |
Other liabilities
|
| | | | 16,460 | | | | | | 5,397 | | | | | | (5,212) | | | |
(g)
|
| | | | 16,645 | | |
Total current liabilities
|
| | | | 191,153 | | | | | | 35,215 | | | | | | (5,673) | | | | | | | | | 220,695 | | |
Long-term debt, less current portion
|
| | | | 463,553 | | | | | | 179,467 | | | | | | (52,468) | | | |
(h)
|
| | | | 590,552 | | |
Other long-term liabilities
|
| | | | 36,580 | | | | | | 144 | | | | | | — | | | | | | | | | 36,724 | | |
Total liabilities
|
| | | $ | 691,286 | | | | | $ | 214,826 | | | | | $ | (58,141) | | | | | | | | $ | 847,971 | | |
Total stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity (deficit) attributable
to AdaptHealth Corp. |
| | | | (10,656) | | | | | | 12,409 | | | | | | 369,367 | | | |
(i)
|
| | | $ | 371,120 | | |
Noncontrolling interest in subsidiaries
|
| | | | (18,791) | | | | | | — | | | | | | — | | | | | | | | | (18,791) | | |
Total stockholders’ equity (deficit)
|
| | |
|
(29,447)
|
| | | |
|
12,409
|
| | | |
|
369,367
|
| | | | | | |
|
352,329
|
| |
Total Liabilities and Stockholders’ Equity (Deficit)
|
| | | $ | 661,839 | | | | | $ | 227,235 | | | | | $ | 311,226 | | | | | | | | $ | 1,200,300 | | |
(in thousands, except per share data)
|
| |
AdaptHealth
Historical |
| |
Solara
Reclassified(1) |
| |
Pro Forma
Adjustments |
| |
Note 3
|
| |
AdaptHealth
Pro-Forma |
| ||||||||||||
Net revenue
|
| | | $ | 191,439 | | | | | $ | 38,876 | | | | | $ | — | | | | | | | | $ | 230,315 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of net revenue
|
| | | | 166,540 | | | | | | 34,158 | | | | | | — | | | | | | | | | 200,698 | | |
General and administrative expenses
|
| | | | 14,347 | | | | | | 1,631 | | | | | | (931) | | | |
(j)
|
| | | | 15,047 | | |
Depreciation, excluding patient equipment depreciation
|
| | | | 1,241 | | | | | | 160 | | | | | | — | | | | | | | | | 1,401 | | |
Total costs and expenses
|
| | | | 182,128 | | | | | | 35,949 | | | | | | (931) | | | | | | | | | 217,146 | | |
Operating income (loss)
|
| | | | 9,311 | | | | | | 2,927 | | | | | | 931 | | | | | | | | | 13,169 | | |
Interest expense, net
|
| | | | 7,938 | | | | | | 3,565 | | | | | | (2,733) | | | |
(k)
|
| | | | 8,770 | | |
Income (loss) before income taxes
|
| | | | 1,373 | | | | | | (638) | | | | | | 3,664 | | | | | | | | | 4,399 | | |
Income tax expense
|
| | | | 1,107 | | | | | | — | | | | | | (51) | | | |
(l)
|
| | | | 1,056 | | |
Net income (loss)
|
| | | | 266 | | | | | | (638) | | | | | | 3,715 | | | | | | | | | 3,343 | | |
Income attributable to noncontrolling interests
|
| | | | 424 | | | | | | — | | | | | | (270) | | | |
(m)
|
| | | | 154 | | |
Net income (loss) attributable to AdaptHealth Corp.
|
| | | $ | (158) | | | | | $ | (638) | | | | | $ | 3,985 | | | | | | | | $ | 3,189 | | |
Net income (loss) per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | — | | | | | | | | | | | | | | | | | | | | $ | 0.07 | | |
Diluted
|
| | | $ | — | | | | | | | | | | | | | | | | | | | | $ | 0.06 | | |
Weighted average shares outstanding for net income
(loss) attributable to AdaptHealth Corp.: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 41,977 | | | | | | | | | | | | 5,525 | | | |
(n)
|
| | | | 47,502 | | |
Diluted
|
| | | | 41,977 | | | | | | | | | | | | 7,288 | | | |
(n)
|
| | | | 49,265 | | |
(in thousands, except per share data)
|
| |
AdaptHealth
Historical |
| |
PCS
Reclassified(1) |
| |
Solara
Reclassified(1) |
| |
Pro Forma
Adjustments |
| |
Note 3
|
| |
AdaptHealth
Pro-Forma |
| |||||||||||||||
Net revenue
|
| | | $ | 529,644 | | | | | $ | 132,885 | | | | | $ | 179,572 | | | | | $ | — | | | | | | | | $ | 842,101 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of net revenue
|
| | | | 440,386 | | | | | | 163,772 | | | | | | 146,669 | | | | | | — | | | | | | | | | 750,827 | | |
General and administrative
expenses |
| | | | 56,493 | | | | | | 5,563 | | | | | | 6,521 | | | | | | (3,721) | | | |
(o)
|
| | | | 64,856 | | |
Depreciation, excluding patient equipment depreciation
|
| | | | 3,068 | | | | | | 235 | | | | | | 590 | | | | | | — | | | | | | | | | 3,893 | | |
Total costs and expenses
|
| | | | 499,947 | | | | | | 169,570 | | | | | | 153,780 | | | | | | (3,721) | | | | | | | | | 819,576 | | |
Operating income (loss)
|
| | | | 29,697 | | | | | | (36,685) | | | | | | 25,792 | | | | | | 3,721 | | | | | | | | | 22,525 | | |
Interest expense, net
|
| | | | 39,305 | | | | | | (90) | | | | | | 13,261 | | | | | | (11,365) | | | |
(p)
|
| | | | 41,111 | | |
Loss on extinguishment of debt, net
|
| | | | 2,121 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 2,121 | | |
Income (loss) before income taxes
|
| | | | (11,729) | | | | | | (36,595) | | | | | | 12,531 | | | | | | 15,086 | | | | | | | | | (20,707) | | |
Income tax expense
|
| | | | 1,156 | | | | | | — | | | | | | 294 | | | | | | 591 | | | |
(l)
|
| | | | 2,041 | | |
Net income (loss)
|
| | | | (12,885) | | | | | | (36,595) | | | | | | 12,237 | | | | | | 14,495 | | | | | | | | | (22,748) | | |
Income attributable to noncontrolling interests
|
| | | | 2,111 | | | | | | — | | | | | | — | | | | | | (1,094) | | | |
(m)
|
| | | | 1,017 | | |
Net income (loss) attributable to AdaptHealth Corp.
|
| | | $ | (14,996) | | | | | $ | (36,595) | | | | | $ | 12,237 | | | | | $ | 15,589 | | | | | | | | $ | (23,765) | | |
Net income (loss) per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.66) | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.85) | | |
Weighted average shares outstanding for net income (loss) attributable to AdaptHealth Corp.:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 22,557 | | | | | | | | | | | | | | | | | | 5,525 | | | |
(n)
|
| | | | 28,082 | | |
(in thousands)
|
| |
As per
Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Accounts receivable, net
|
| | | $ | 25,991 | | | | | $ | (1,788) | | | | | $ | 24,203 | | |
Equipment and other fixed assets, net
|
| | | $ | 2,517 | | | | | $ | 1,994 | | | | | $ | 4,511 | | |
Rental pumps, net
|
| | | $ | 1,994 | | | | | $ | (1,994) | | | | | $ | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | — | | | | | $ | 28,158 | | | | | $ | 28,158 | | |
Accounts payable
|
| | | $ | 13,555 | | | | | $ | (13,555) | | | | | $ | — | | |
Accrued expenses
|
| | | $ | 16,576 | | | | | $ | (16,576) | | | | | $ | — | | |
Other liabilities
|
| | | $ | — | | | | | $ | 5,397 | | | | | $ | 5,397 | | |
Contingent consideration, current portion
|
| | | $ | 5,212 | | | | | $ | (5,212) | | | | | $ | — | | |
Total stockholders’ equity: | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity (deficit) attributable to AdaptHealth Corp.
|
| | | $ | — | | | | | $ | 12,409 | | | | | $ | 12,409 | | |
Total members’ equity
|
| | | $ | 12,409 | | | | | $ | (12,409) | | | | | $ | — | | |
(in thousands)
|
| |
As per
Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
Net revenue
|
| | | $ | 39,681 | | | | | $ | (805) | | | | | $ | 38,876 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of Sales
|
| | | $ | 24,387 | | | | | $ | 9,771 | | | | | $ | 34,158 | | |
General and administrative expenses
|
| | | $ | — | | | | | $ | 1,631 | | | | | $ | 1,631 | | |
Depreciation, excluding patient equipment depreciation
|
| | | $ | — | | | | | $ | 160 | | | | | $ | 160 | | |
Selling, general and administrative expenses
|
| | | $ | 12,398 | | | | | $ | (12,398) | | | | | $ | — | | |
Other income
|
| | | $ | (31) | | | | | $ | 31 | | | | | $ | — | | |
(in thousands)
|
| |
As per
Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
Net revenue
|
| | | $ | 183,352 | | | | | $ | (3,780) | | | | | $ | 179,572 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of Sales
|
| | | $ | 113,335 | | | | | $ | 33,334 | | | | | $ | 146,669 | | |
General and administrative expenses
|
| | | $ | — | | | | | $ | 6,521 | | | | | $ | 6,521 | | |
Depreciation, excluding patient equipment depreciation
|
| | | $ | — | | | | | $ | 590 | | | | | $ | 590 | | |
Selling, general and administrative expenses
|
| | | $ | 44,360 | | | | | $ | (44,360) | | | | | $ | — | | |
Other income
|
| | | $ | (135) | | | | | $ | 135 | | | | | $ | — | | |
(in thousands)
|
| |
As per
Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of Sales
|
| | | $ | 82,263 | | | | | $ | 81,509 | | | | | $ | 163,772 | | |
General and administrative expenses
|
| | | $ | — | | | | | $ | 5,563 | | | | | $ | 5,563 | | |
Depreciation, excluding patient equipment depreciation
|
| | | $ | — | | | | | $ | 235 | | | | | $ | 235 | | |
Selling, distribution, and administrative expenses
|
| | | $ | 82,483 | | | | | $ | (82,483) | | | | | $ | — | | |
Restructuring Charges
|
| | | $ | 4,838 | | | | | $ | (4,838) | | | | | $ | — | | |
Interest expense (income)
|
| | | $ | — | | | | | $ | (90) | | | | | $ | (90) | | |
Other expense, net
|
| | | $ | (104) | | | | | $ | 104 | | | | | $ | — | | |
| | |
At March 31, 2020
|
| |||||||||||||||
(in thousands, except per share data)
|
| |
Actual
|
| |
As Adjusted(1)(2)
|
| |
Pro Forma As
Adjusted(1)(2)(3) |
| |||||||||
| | |
(unaudited)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 48,164 | | | | | $ | 150,265 | | | | | $ | 142,001 | | |
Debt | | | | | | | | | | | | | | | | | | | |
Long-term debt, less current portion
|
| | | $ | 463,553 | | | | | $ | 463,553 | | | | | $ | 590,552 | | |
Current portion of long-term debt
|
| | | | 2,616 | | | | | | 2,616 | | | | | | 12,678 | | |
Total debt
|
| | | $ | 466,169 | | | | | $ | 466,169 | | | | | $ | 603,230 | | |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | |
Class A Common Stock, par value of $0.0001 per share, 210,000 shares authorized; 43,354 shares issued and outstanding (actual), 49,854 shares issued and outstanding (as adjusted) and 48,880 shares issued and outstanding (pro forma as adjusted)
|
| | | | 4 | | | | | | 5 | | | | | | 5 | | |
Class B Common Stock, par value of $0.0001 per share, 35,000
shares authorized; 30,564 shares issued and outstanding |
| | | | 3 | | | | | | 3 | | | | | | 3 | | |
Preferred Stock, par value $0.0001 per share, 5,000 shares authorized (actual, as adjusted, pro forma as adjusted)
|
| | | | |||||||||||||||
Series A Preferred Stock, 0 shares issued and outstanding (actual, as adjusted), 40 shares issued and outstanding (pro forma as adjusted)
|
| | | | — | | | | | | — | | | | | | 1 | | |
Series B-1 Preferred Stock, 0 shares issued and outstanding (actual, as adjusted), 158 shares issued and outstanding (pro forma as adjusted)
|
| | | | — | | | | | | — | | | | | | 1 | | |
| | |
At March 31, 2020
|
| |||||||||||||||
(in thousands, except per share data)
|
| |
Actual
|
| |
As Adjusted(1)(2)
|
| |
Pro Forma As
Adjusted(1)(2)(3) |
| |||||||||
| | |
(unaudited)
|
| |||||||||||||||
Series B-2 Preferred Stock, 0 shares issued and outstanding (actual, as adjusted), 35 shares issued and outstanding (pro forma as adjusted)
|
| | | | — | | | | | | — | | | | | | 1 | | |
Additional paid-in capital
|
| | | | 21,844 | | | | | | 116,115 | | | | | | 411,441 | | |
Accumulated deficit
|
| | | | (27,368) | | | | | | (27,368) | | | | | | (35,193) | | |
Accumulated other comprehensive (loss) income
|
| | | | (5,139) | | | | | | (5,139) | | | | | | (5,139) | | |
Total stockholders’ equity attributable to AdaptHealth Corp.
|
| | | $ | (10,656) | | | | | $ | 83,616 | | | | | $ | 371,120 | | |
Total capitalization
|
| | | $ | 455,513 | | | | | $ | 549,785 | | | | | $ | 974,350 | | |
|
| | |
Three Months
Ended March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |
(audited)
|
| ||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data:
|
| | | | | | | ||||||||||||||||||||||||||||||
Total net revenue
|
| | | $ | 191,439 | | | | | $ | 119,498 | | | | | $ | 529,644 | | | | | $ | 345,278 | | | | | $ | 192,559 | | | | | $ | 174,316 | | |
Operating income
|
| | | $ | 9,311 | | | | | $ | 5,348 | | | | | $ | 29,697 | | | | | $ | 31,091 | | | | | $ | 16,088 | | | | | $ | 2,323 | | |
Net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (158) | | | | | $ | (5,800) | | | | | $ | (14,996) | | | | | $ | 23,260 | | | | | $ | 9,687 | | | | | $ | (4,183) | | |
Consolidated Statement of Cash Flow Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities
|
| | | $ | 24,380 | | | | | $ | 16,232 | | | | | $ | 60,418 | | | | | $ | 68,427 | | | | | $ | 45,931 | | | | | $ | 29,935 | | |
Net cash used in investing activities
|
| | | $ | (111,330) | | | | | $ | (26,179) | | | | | $ | (84,870) | | | | | $ | (96,284) | | | | | $ | (15,077) | | | | | $ | (2,676) | | |
Net cash provided by (used in) financing
activities |
| | | $ | 58,235 | | | | | $ | (369) | | | | | $ | 76,144 | | | | | $ | 48,769 | | | | | $ | (30,263) | | | | | $ | (27,580) | | |
(in thousands)
|
| |
March 31,
2020 |
| |
December 31,
|
| ||||||||||||||||||
|
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||
| | |
(unaudited)
|
| |
(audited)
|
| ||||||||||||||||||
Balance Sheet Data: | | | | | | ||||||||||||||||||||
Total assets
|
| | | $ | 661,839 | | | | | $ | 546,122 | | | | | $ | 368,957 | | | | | $ | 111,984 | | |
Total long-term debt, including current portion
|
| | | $ | 466,169 | | | | | $ | 396,833 | | | | | $ | 134,185 | | | | | $ | 20,312 | | |
Total stockholders’ equity (deficit) / members’ equity (deficit).
|
| | | $ | (29,447) | | | | | $ | (29,248) | | | | | $ | 102,769 | | | | | $ | (637) | | |
| | |
Three Months
Ended March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||||||||||||||
EBITDA
|
| | | $ | 26,051 | | | | | $ | 18,198 | | | | | $ | 90,142 | | | | | $ | 77,569 | | | | | $ | 43,580 | | | | | $ | 28,886 | | |
Adjusted EBITDA
|
| | | $ | 30,460 | | | | | $ | 28,216 | | | | | $ | 123,021 | | | | | $ | 84,447 | | | | | $ | 45,035 | | | | | $ | 33,104 | | |
Adjusted EBITDA less Patient Equipment
Capex |
| | | $ | 17,493 | | | | | $ | 16,973 | | | | | $ | 75,600 | | | | | $ | 45,083 | | | | | $ | 19,186 | | | | | $ | 7,625 | | |
| | |
Three Months
Ended March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||||||||||||||
Net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (158) | | | | | $ | (5,800) | | | | | $ | (14,996) | | | | | $ | 23,260 | | | | | $ | 9,687 | | | | | $ | (4,183) | | |
Income attributable to noncontrolling interest
|
| | | | 424 | | | | | | 348 | | | | | | 2,111 | | | | | | 1,077 | | | | | | 580 | | | | | | 563 | | |
Interest expense excluding change in fair value of interest rate swaps.
|
| | | | 7,938 | | | | | | 3,558 | | | | | | 27,878 | | | | | | 8,000 | | | | | | 5,041 | | | | | | 5,761 | | |
Interest expense (income) – change in fair value of interest rate swaps
|
| | | | — | | | | | | 2,702 | | | | | | 11,426 | | | | | | (547) | | | | | | — | | | | | | — | | |
Income tax expense (benefit)
|
| | | | 1,107 | | | | | | 2,418 | | | | | | 1,156 | | | | | | (2,098) | | | | | | 249 | | | | | | (208) | | |
Depreciation
|
| | | | 16,740 | | | | | | 14,972 | | | | | | 62,567 | | | | | | 47,877 | | | | | | 27,816 | | | | | | 26,563 | | |
Loss from discontinued operations, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 207 | | | | | | 390 | | |
EBITDA | | | | | 26,051 | | | | | | 18,198 | | | | | | 90,142 | | | | | | 77,569 | | | | | | 43,580 | | | | | | 28,886 | | |
Loss on extinguishment of debt, net(a)
|
| | | | — | | | | | | 2,121 | | | | | | 2,121 | | | | | | 1,399 | | | | | | 324 | | | | | | — | | |
Equity-based compensation expense(b)
|
| | | | 2,223 | | | | | | 5,223 | | | | | | 11,070 | | | | | | 884 | | | | | | 49 | | | | | | 49 | | |
Transaction costs(c)
|
| | | | 2,858 | | | | | | 2,516 | | | | | | 15,984 | | | | | | 2,514 | | | | | | — | | | | | | — | | |
Severance(d) | | | | | 419 | | | | | | 141 | | | | | | 2,301 | | | | | | 1,920 | | | | | | 826 | | | | | | 430 | | |
Other non-recurring (income) expense(e)
|
| | | | (1,091) | | | | | | 17 | | | | | | 1,403 | | | | | | 161 | | | | | | 256 | | | | | | 3,739 | | |
Adjusted EBITDA
|
| | | | 30,460 | | | | | | 28,216 | | | | | | 123,021 | | | | | | 84,447 | | | | | | 45,035 | | | | | | 33,104 | | |
Less: Patient equipment capex(f)
|
| | | | (12,967) | | | | | | (11,243) | | | | | | (47,421) | | | | | | (39,364) | | | | | | (25,849) | | | | | | (25,479) | | |
Adjusted EBITDA less Patient Equipment Capex
|
| | | $ | 17,493 | | | | | $ | 16,973 | | | | | $ | 75,600 | | | | | $ | 45,083 | | | | | $ | 19,186 | | | | | $ | 7,625 | | |
| | |
Three months ended
|
| |||||||||||||||||||||
| | |
March 31, 2020
|
| |
March 31, 2019
|
| ||||||||||||||||||
Net Revenue
(in thousands, except percentages) |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| ||||||||||||
| | |
(Unaudited)
|
| |||||||||||||||||||||
Net sales revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 68,894 | | | | | | 36.0% | | | | | $ | 47,127 | | | | | | 39.4% | | |
Supplies to the home
|
| | | | 33,339 | | | | | | 17.4% | | | | | | 2,029 | | | | | | 1.7% | | |
HME
|
| | | | 11,579 | | | | | | 6.0% | | | | | | 10,489 | | | | | | 8.8% | | |
Respiratory
|
| | | | 2,768 | | | | | | 1.4% | | | | | | 1,279 | | | | | | 1.1% | | |
Other
|
| | | | 12,393 | | | | | | 6.5% | | | | | | 8,032 | | | | | | 6.7% | | |
Total net sales revenue
|
| | | $ | 128,973 | | | | | | 67.3% | | | | | $ | 68,956 | | | | | | 57.7% | | |
Net revenue from fixed monthly equipment reimbursements:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 22,669 | | | | | | 11.8% | | | | | $ | 18,057 | | | | | | 15.1% | | |
HME
|
| | | | 12,177 | | | | | | 6.4% | | | | | | 10,243 | | | | | | 8.6% | | |
Respiratory
|
| | | | 25,007 | | | | | | 13.1% | | | | | | 20,429 | | | | | | 17.1% | | |
Other
|
| | | | 2,613 | | | | | | 1.4% | | | | | | 1,813 | | | | | | 1.5% | | |
Total net revenue from fixed monthly equipment reimbursements
|
| | | $ | 62,466 | | | | | | 32.7% | | | | | $ | 50,542 | | | | | | 42.3% | | |
Total net revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 91,563 | | | | | | 47.8% | | | | | $ | 65,184 | | | | | | 54.5% | | |
Supplies to the home
|
| | | | 33,339 | | | | | | 17.4% | | | | | | 2,029 | | | | | | 1.7% | | |
HME
|
| | | | 23,756 | | | | | | 12.4% | | | | | | 20,732 | | | | | | 17.4% | | |
Respiratory
|
| | | | 27,775 | | | | | | 14.5% | | | | | | 21,708 | | | | | | 18.2% | | |
Other
|
| | | | 15,006 | | | | | | 7.9% | | | | | | 9,845 | | | | | | 8.2% | | |
Total net revenue
|
| | | $ | 191,439 | | | | | | 100.0% | | | | | $ | 119,498 | | | | | | 100.0% | | |
| | |
Three months ended
|
| | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
| | |
March 31, 2019
|
| |
June 30, 2019
|
| |
September 30, 2019
|
| |
December 31, 2019
|
| | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Net Revenue
(in thousands, except percentages) |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Total
|
| |
Revenue
Percentage |
| ||||||||||||||||||||||||||||||
| | |
(Unaudited)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales revenue – Point in time
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 47,127 | | | | | | 39.4% | | | | | $ | 50,433 | | | | | | 40.6% | | | | | $ | 59,117 | | | | | | 43.3% | | | | | $ | 67,865 | | | | | | 45.4% | | | | | $ | 224,542 | | | | | | 42.4% | | |
Respiratory
|
| | | | 1,279 | | | | | | 1.1% | | | | | | 1,445 | | | | | | 1.2% | | | | | | 1,397 | | | | | | 1.0% | | | | | | 1,659 | | | | | | 1.1% | | | | | | 5,780 | | | | | | 1.1% | | |
HME
|
| | | | 11,042 | | | | | | 9.2% | | | | | | 10,966 | | | | | | 8.8% | | | | | | 11,963 | | | | | | 8.8% | | | | | | 11,977 | | | | | | 8.0% | | | | | | 45,948 | | | | | | 8.7% | | |
Other
|
| | | | 9,509 | | | | | | 8.0% | | | | | | 10,151 | | | | | | 8.2% | | | | | | 10,587 | | | | | | 7.8% | | | | | | 9,934 | | | | | | 6.6% | | | | | | 40,181 | | | | | | 7.5% | | |
Total Net sales revenue
|
| | | $ | 68,957 | | | | | | 57.7% | | | | | $ | 72,995 | | | | | | 58.8% | | | | | $ | 83,064 | | | | | | 60.9% | | | | | $ | 91,435 | | | | | | 61.1% | | | | | $ | 316,451 | | | | | | 59.7% | | |
Net revenue from fixed monthly equipment reimbursements
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 18,057 | | | | | | 15.1% | | | | | $ | 18,944 | | | | | | 15.3% | | | | | $ | 20,761 | | | | | | 15.2% | | | | | $ | 23,084 | | | | | | 15.4% | | | | | $ | 80,846 | | | | | | 15.3% | | |
Respiratory
|
| | | | 20,429 | | | | | | 17.1% | | | | | | 20,010 | | | | | | 16.1% | | | | | | 19,646 | | | | | | 14.4% | | | | | | 21,333 | | | | | | 14.3% | | | | | | 81,418 | | | | | | 15.4% | | |
HME
|
| | | | 10,370 | | | | | | 8.7% | | | | | | 10,294 | | | | | | 8.3% | | | | | | 11,103 | | | | | | 8.1% | | | | | | 11,445 | | | | | | 7.7% | | | | | | 43,212 | | | | | | 8.2% | | |
Other
|
| | | | 1,686 | | | | | | 1.4% | | | | | | 1,910 | | | | | | 1.5% | | | | | | 1,877 | | | | | | 1.4% | | | | | | 2,244 | | | | | | 1.5% | | | | | | 7,717 | | | | | | 1.4% | | |
Total Net revenue from fixed
monthly equipment reimbursements |
| | | $ | 50,542 | | | | | | 42.3% | | | | | $ | 51,158 | | | | | | 41.2% | | | | | $ | 53,387 | | | | | | 39.1% | | | | | $ | 58,106 | | | | | | 38.9% | | | | | $ | 213,193 | | | | | | 40.3% | | |
Total net revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 65,184 | | | | | | 54.5% | | | | | $ | 69,377 | | | | | | 55.9% | | | | | $ | 79,878 | | | | | | 58.5% | | | | | $ | 90,949 | | | | | | 60.8% | | | | | $ | 305,388 | | | | | | 57.7% | | |
Respiratory
|
| | | | 21,708 | | | | | | 18.2% | | | | | | 21,455 | | | | | | 17.3% | | | | | | 21,043 | | | | | | 15.4% | | | | | | 22,992 | | | | | | 15.4% | | | | | | 87,198 | | | | | | 16.5% | | |
HME
|
| | | | 21,412 | | | | | | 17.9% | | | | | | 21,260 | | | | | | 17.1% | | | | | | 23,066 | | | | | | 16.9% | | | | | | 23,422 | | | | | | 15.7% | | | | | | 89,160 | | | | | | 16.9% | | |
Other
|
| | | | 11,195 | | | | | | 9.4% | | | | | | 12,061 | | | | | | 9.7% | | | | | | 12,464 | | | | | | 9.2% | | | | | | 12,178 | | | | | | 8.1% | | | | | | 47,898 | | | | | | 8.9% | | |
Total net revenue
|
| | | $ | 119,499 | | | | | | 100.0% | | | | | $ | 124,153 | | | | | | 100.0% | | | | | $ | 136,451 | | | | | | 100.0% | | | | | $ | 149,541 | | | | | | 100.0% | | | | | $ | 529,644 | | | | | | 100.0% | | |
|
| | |
Three months ended
|
| | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
| | |
March 31, 2018
|
| |
June 30, 2018
|
| |
September 30, 2018
|
| |
December 31, 2018
|
| | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Net Revenue
(in thousands, except percentages) |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Total
|
| |
Revenue
Percentage |
| ||||||||||||||||||||||||||||||
| | |
(Unaudited)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales revenue – Point in time | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 12,205 | | | | | | 21.8% | | | | | $ | 25,760 | | | | | | 32.8% | | | | | $ | 41,226 | | | | | | 40.4% | | | | | $ | 44,394 | | | | | | 40.9% | | | | | $ | 123,585 | | | | | | 35.8% | | |
Respiratory
|
| | | | 1,069 | | | | | | 1.9% | | | | | | 1,193 | | | | | | 1.5% | | | | | | 1,267 | | | | | | 1.2% | | | | | | 1,382 | | | | | | 1.3% | | | | | | 4,911 | | | | | | 1.4% | | |
HME
|
| | | | 9,069 | | | | | | 16.2% | | | | | | 9,289 | | | | | | 11.8% | | | | | | 8,938 | | | | | | 8.7% | | | | | | 9,428 | | | | | | 8.7% | | | | | | 36,724 | | | | | | 10.6% | | |
Other
|
| | | | 5,472 | | | | | | 9.8% | | | | | | 6,043 | | | | | | 7.8% | | | | | | 6,062 | | | | | | 6.0% | | | | | | 7,074 | | | | | | 6.4% | | | | | | 24,651 | | | | | | 7.2% | | |
Total Net sales revenue
|
| | | $ | 27,815 | | | | | | 49.7% | | | | | $ | 42,285 | | | | | | 53.9% | | | | | $ | 57,493 | | | | | | 56.3% | | | | | $ | 62,278 | | | | | | 57.3% | | | | | $ | 189,871 | | | | | | 55.0% | | |
Net revenue from fixed monthly equipment reimbursements
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 7,534 | | | | | | 13.5% | | | | | $ | 11,709 | | | | | | 14.9% | | | | | $ | 16,102 | | | | | | 15.8% | | | | | $ | 17,359 | | | | | | 16.0% | | | | | $ | 52,704 | | | | | | 15.3% | | |
Respiratory
|
| | | | 12,167 | | | | | | 21.7% | | | | | | 15,627 | | | | | | 19.9% | | | | | | 19,246 | | | | | | 18.8% | | | | | | 19,301 | | | | | | 17.8% | | | | | | 66,341 | | | | | | 19.2% | | |
HME
|
| | | | 8,354 | | | | | | 14.9% | | | | | | 8,770 | | | | | | 11.2% | | | | | | 9,180 | | | | | | 9.0% | | | | | | 9,638 | | | | | | 8.8% | | | | | | 35,942 | | | | | | 10.4% | | |
Other
|
| | | | 114 | | | | | | 0.2% | | | | | | 94 | | | | | | 0.1% | | | | | | 135 | | | | | | 0.1% | | | | | | 77 | | | | | | 0.1% | | | | | | 420 | | | | | | 0.1% | | |
Total Net revenue from fixed monthly equipment reimbursements
|
| | | $ | 28,169 | | | | | | 50.3% | | | | | $ | 36,200 | | | | | | 46.1% | | | | | $ | 44,663 | | | | | | 43.7% | | | | | $ | 46,375 | | | | | | 42.7% | | | | | $ | 155,407 | | | | | | 45.0% | | |
Total net revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sleep
|
| | | $ | 19,739 | | | | | | 35.3% | | | | | $ | 37,469 | | | | | | 47.7% | | | | | $ | 57,328 | | | | | | 56.2% | | | | | $ | 61,753 | | | | | | 56.9% | | | | | $ | 176,289 | | | | | | 51.1% | | |
Respiratory
|
| | | | 13,236 | | | | | | 23.6% | | | | | | 16,820 | | | | | | 21.4% | | | | | | 20,513 | | | | | | 20.0% | | | | | | 20,683 | | | | | | 19.1% | | | | | | 71,252 | | | | | | 20.6% | | |
HME
|
| | | | 17,423 | | | | | | 31.1% | | | | | | 18,059 | | | | | | 23.0% | | | | | | 18,118 | | | | | | 17.7% | | | | | | 19,066 | | | | | | 17.5% | | | | | | 72,666 | | | | | | 21.0% | | |
Other
|
| | | | 5,586 | | | | | | 10.0% | | | | | | 6,137 | | | | | | 7.9% | | | | | | 6,197 | | | | | | 6.1% | | | | | | 7,151 | | | | | | 6.5% | | | | | | 25,071 | | | | | | 7.3% | | |
Total net revenue
|
| | | $ | 55,984 | | | | | | 100.0% | | | | | $ | 78,485 | | | | | | 100.0% | | | | | $ | 102,156 | | | | | | 100.0% | | | | | $ | 108,653 | | | | | | 100.0% | | | | | $ | 345,278 | | | | | | 100.0% | | |
|
| | |
Three Months Ended March 31,
|
| | | | | | | | | | | | | |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Increase/(Decrease)
|
| |||||||||||||||||||||||||||
(in thousands, except percentages)
|
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Percentage
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||||||||||||||
Net revenue
|
| | | $ | 191,439 | | | | | | 100.0% | | | | | $ | 119,498 | | | | | | 100.0% | | | | | $ | 71,941 | | | | | | 60.2% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of net revenue
|
| | | | 166,540 | | | | | | 87.0% | | | | | | 100,227 | | | | | | 83.9% | | | | | | 66,313 | | | | | | 66.2% | | |
General and administrative expenses
|
| | | | 14,347 | | | | | | 7.5% | | | | | | 13,083 | | | | | | 10.9% | | | | | | 1,264 | | | | | | 9.7% | | |
Depreciation, excluding patient equipment depreciation
|
| | | | 1,241 | | | | | | 0.6% | | | | | | 841 | | | | | | 0.7% | | | | | | 400 | | | | | | 47.6% | | |
Total costs and expenses
|
| | | | 182,128 | | | | | | 95.1% | | | | | | 114,151 | | | | | | 95.5% | | | | | | 67,977 | | | | | | 59.6% | | |
Operating income
|
| | | | 9,311 | | | | | | 4.9% | | | | | | 5,347 | | | | | | 4.5% | | | | | | 3,964 | | | | | | 74.1% | | |
Interest expense, net
|
| | | | 7,938 | | | | | | 4.1% | | | | | | 6,260 | | | | | | 5.2% | | | | | | 1,678 | | | | | | 26.8% | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 2,121 | | | | | | 1.8% | | | | | | (2,121) | | | | | | NM | | |
Income (loss) before income taxes
|
| | | | 1,373 | | | | | | 0.8% | | | | | | (3,034) | | | | | | (2.5)% | | | | | | 4,407 | | | | | | (145.3)% | | |
Income tax expense (benefit)
|
| | | | 1,107 | | | | | | 0.6% | | | | | | 2,418 | | | | | | 2.0% | | | | | | (1,311) | | | | | | NM | | |
Net income (loss)
|
| | | | 266 | | | | | | 0.2% | | | | | | (5,452) | | | | | | (4.5)% | | | | | | 5,718 | | | | | | (104.9)% | | |
Income attributable to noncontrolling interests
|
| | | | 424 | | | | | | 0.2% | | | | | | 348 | | | | | | 0.3% | | | | | | 76 | | | | | | 21.8% | | |
Net loss attributable to AdaptHealth Corp.
|
| | | $ | (158) | | | | | | 0.0% | | | | | $ | (5,800) | | | | | | (4.8)% | | | | | $ | 5,642 | | | | | | (97.3)% | | |
| | |
Three Months Ended March 31,
|
| | | | | | | | | | | | | |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Increase/(Decrease)
|
| |||||||||||||||||||||||||||
(in thousands, except percentages)
|
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Percentage
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||||||||||||||
Costs of net revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of products and supplies
|
| | | $ | 72,003 | | | | | | 37.6% | | | | | $ | 34,600 | | | | | | 29.0% | | | | | $ | 37,403 | | | | | | 108.1% | | |
Salaries, labor and benefits
|
| | | | 54,651 | | | | | | 28.5% | | | | | | 35,618 | | | | | | 29.8% | | | | | | 19,033 | | | | | | 53.4% | | |
Patient equipment depreciation
|
| | | | 15,498 | | | | | | 8.1% | | | | | | 14,131 | | | | | | 11.8% | | | | | | 1,367 | | | | | | 9.7% | | |
Rent and occupancy
|
| | | | 4,600 | | | | | | 2.4% | | | | | | 3,226 | | | | | | 2.7% | | | | | | 1,374 | | | | | | 42.6% | | |
Other operating expenses
|
| | | | 19,336 | | | | | | 10.2% | | | | | | 12,494 | | | | | | 10.5% | | | | | | 6,842 | | | | | | 54.8% | | |
Transaction costs
|
| | | | 627 | | | | | | 0.3% | | | | | | — | | | | | | —% | | | | | | 627 | | | | | | NM% | | |
Equity-based compensation
|
| | | | 551 | | | | | | 0.3% | | | | | | — | | | | | | —% | | | | | | 551 | | | | | | NM% | | |
Severance
|
| | | | 365 | | | | | | 0.2% | | | | | | 141 | | | | | | 0.1% | | | | | | 224 | | | | | | 158.9% | | |
Other non-recurring (income) expenses
|
| | | | (1,091) | | | | | | (0.6)% | | | | | | 17 | | | | | | —% | | | | | | (1,108) | | | | | | NM% | | |
Total cost of net revenue
|
| | | $ | 166,540 | | | | |
|
87.0%
|
| | | | $ | 100,227 | | | | |
|
83.9%
|
| | | | $ | 66,313 | | | | |
|
66.2%
|
| |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
Increase/(Decrease)
|
| |||||||||||||||||||||||||||
(in thousands, except percentages)
|
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Revenue
Percentage |
| |
Dollars
|
| |
Percentage
|
| ||||||||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue, net of contractual allowances
and discounts |
| | | | | | | | | | | | | | | $ | 361,054 | | | | | | | | | | | | | | | | | | | | |
Provision for doubtful accounts(1)
|
| | | | | | | | | | | | | | | | (15,776) | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 529,644 | | | | | | 100.0% | | | | | | 345,278 | | | | | | 100.0% | | | | | $ | 184,366 | | | | | | 53.4% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of net revenue
|
| | | | 440,386 | | | | | | 83.1% | | | | | | 293,384 | | | | | | 85.0% | | | | | | 147,002 | | | | | | 50.1% | | |
General and administrative expenses
|
| | | | 56,493 | | | | | | 10.7% | | | | | | 18,069 | | | | | | 5.2% | | | | | | 38,424 | | | | | | 212.7% | | |
Depreciation, excluding patient equipment depreciation
|
| | | | 3,069 | | | | | | 0.6% | | | | | | 2,734 | | | | | | 0.8% | | | | | | 335 | | | | | | 12.3% | | |
Total costs and expenses
|
| | | | 499,948 | | | | | | 94.4% | | | | | | 314,187 | | | | | | 91.0% | | | | | | 185,761 | | | | | | 59.1% | | |
Operating income
|
| | | | 29,696 | | | | | | 5.6% | | | | | | 31,091 | | | | | | 9.0% | | | | | | (1,395) | | | | | | (4.5)% | | |
Interest expense, net
|
| | | | 39,304 | | | | | | 7.4% | | | | | | 7,453 | | | | | | 2.2% | | | | | | 31,851 | | | | | | 427.4% | | |
Loss on extinguishment of debt, net
|
| | | | 2,121 | | | | | | 0.4% | | | | | | 1,399 | | | | | | 0.4% | | | | | | 722 | | | | | | NM% | | |
(Loss) income before income taxes
|
| | | | (11,729) | | | | | | (2.2)% | | | | | | 22,239 | | | | | | 6.4% | | | | | | (33,968) | | | | | | (152.7)% | | |
Income tax expense (benefit)
|
| | | | 1,156 | | | | | | 0.2% | | | | | | (2,098) | | | | | | (0.6)% | | | | | | 3,254 | | | | | | NM | | |
Net (loss) income
|
| | | | (12,885) | | | | | | (2.4)% | | | | | | 24,337 | | | | | | 7.0% | | | | | | (37,222) | | | | | | (152.9)% | | |
Income attributable to noncontrolling interests
|
| | | | 2,111 | | | | | | 0.4% | | | | | | 1,077 | | | | | | 0.3% | | | | | | 1,034 | | | | | | 96.0% | | |
Net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (14,996) | | | | | | (2.8)% | | | | | $ | 23,260 | | | | | | 6.7% | | | | | $ | (38,256) | | | | | | (164.5)% | | |
|
| | |
Three Months Ended March 31,
|
| |||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Net loss attributable to AdaptHealth Corp.
|
| | | $ | (158) | | | | | $ | (5,800) | | |
Income attributable to noncontrolling interests
|
| | | | 424 | | | | | | 348 | | |
Interest expense excluding change in fair value of interest rate swaps
|
| | | | 7,938 | | | | | | 3,558 | | |
Interest expense – change in fair value of interest rate swaps
|
| | | | — | | | | | | 2,702 | | |
Income tax expense
|
| | | | 1,107 | | | | | | 2,418 | | |
Depreciation, including patient equipment depreciation
|
| | | | 16,740 | | | | | | 14,972 | | |
EBITDA | | | | | 26,051 | | | | | | 18,198 | | |
Loss on extinguishment of debt(a)
|
| | | | — | | | | | | 2,121 | | |
Equity-based compensation expense(b)
|
| | | | 2,223 | | | | | | 5,223 | | |
Transaction costs(c)
|
| | | | 2,858 | | | | | | 2,516 | | |
Severance(d) | | | | | 419 | | | | | | 141 | | |
Other non-recurring (income) expense(e)
|
| | | | (1,091) | | | | | | 17 | | |
Adjusted EBITDA
|
| | | | 30,460 | | | | | | 28,216 | | |
Less: Patient equipment capex(f)
|
| | | | (12,967) | | | | | | (11,243) | | |
Adjusted EBITDA less Patient Equipment Capex
|
| | | $ | 17,493 | | | | | $ | 16,973 | | |
| | |
Year Ended December 31,
|
| |||||||||
(in thousands)
|
| |
2019
|
| |
2018
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (14,996) | | | | | $ | 23,260 | | |
Income attributable to noncontrolling interests
|
| | | | 2,111 | | | | | | 1,077 | | |
Interest expense excluding change in fair value of interest rate swaps
|
| | | | 27,878 | | | | | | 8,000 | | |
Interest expense (income) – change in fair value of interest rate swaps
|
| | | | 11,426 | | | | | | (547) | | |
Income tax expense (benefit)
|
| | | | 1,156 | | | | | | (2,098) | | |
Depreciation
|
| | | | 62,567 | | | | | | 47,877 | | |
EBITDA | | | | | 90,142 | | | | | | 77,569 | | |
Loss on extinguishment of debt, net(a)
|
| | | | 2,121 | | | | | | 1,399 | | |
Equity-based compensation expense(b)
|
| | | | 11,070 | | | | | | 884 | | |
Transaction costs(c)
|
| | | | 15,984 | | | | | | 2,514 | | |
Severance(d) | | | | | 2,301 | | | | | | 1,920 | | |
Non-recurring expenses
|
| | | | 534 | | | | | | 161 | | |
Earnout liability activity(e)
|
| | | | 869 | | | | | | — | | |
Adjusted EBITDA
|
| | | | 123,021 | | | | | | 84,447 | | |
Less: Patient equipment capex(f)
|
| | | | (47,421) | | | | | | (39,364) | | |
Adjusted EBITDA less Patient Equipment Capex
|
| | | $ | 75,600 | | | | | $ | 45,083 | | |
| | |
Three Months
Ended March 31, |
| |
Year Ended
December 31, |
| ||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| |||||||||||||||||||||
Net cash provided by operating activities
|
| | | $ | 24,380 | | | | | $ | 16,232 | | | | | $ | 60,418 | | | | | $ | 68,427 | | |
Net cash used in investing activities
|
| | | | (111,329) | | | | | | (26,179) | | | | | | (84,870) | | | | | | (96,284) | | |
Net cash provided by (used in) financing activities
|
| | | | 58,235 | | | | | | (369) | | | | | | 76,144 | | | | | | 48,769 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | (28,714) | | | | | | (10,316) | | | | | | 51,692 | | | | | | 20,912 | | |
Cash at beginning of period
|
| | | | 76,878 | | | | | | 25,186 | | | | | | 25,186 | | | | | | 4,274 | | |
Cash at end of period
|
| | | $ | 48,164 | | | | | $ | 14,870 | | | | | $ | 76,878 | | | | | $ | 25,186 | | |
Name
|
| |
Age
|
| |
Position
|
| |
Class(1)
|
|
Richard Barasch | | |
66
|
| | Chairman of the Board | | |
I
|
|
Alan Quasha | | |
70
|
| | Director | | |
I
|
|
Terence Connors | | |
65
|
| | Director | | |
II
|
|
Dr. Susan Weaver | | |
59
|
| | Director | | |
III
|
|
Dale Wolf | | |
66
|
| | Director | | |
III
|
|
Luke McGee | | |
36
|
| |
Chief Executive Officer, Director
|
| |
I
|
|
Joshua Parnes | | |
42
|
| | President, Director | | |
II
|
|
Gregg Holst(2) | | |
61
|
| | Chief Financial Officer | | |
—
|
|
Jason A. Clemens(2) | | |
42
|
| | Chief Financial Officer | | |
—
|
|
Christopher Joyce | | |
56
|
| | General Counsel | | |
—
|
|
Shaw Rietkerk | | |
45
|
| | Chief Operating Officer | | |
—
|
|
Name and Principal Position
|
| |
Year
|
| |
Salary(1)
($) |
| |
Bonus(2)
($) |
| |
Stock
Awards(3) ($) |
| |
Option
Awards(4) ($) |
| |
Non-equity
Incentive Plan Compensation(5) ($) |
| |
All Other
Compensation(6) ($) |
| |
Total
($) |
| ||||||||||||||||||||||||
Luke McGee
Chief Executive Officer |
| | | | 2019 | | | | | | 458,333 | | | | | | 1,000,000 | | | | | | 5,278,612 | | | | | | 1,325,974 | | | | | | 450,000 | | | | | | 967,152 | | | | | | 9,480,071 | | |
| | | 2018 | | | | | | 300,000 | | | | | | — | | | | | | 1,724,100 | | | | | | — | | | | | | 211,250 | | | | | | 12,324 | | | | | | 2,247,674 | | | ||
Joshua Parnes
President |
| | | | 2019 | | | | | | 458,333 | | | | | | — | | | | | | 4,583,925 | | | | | | 1,325,974 | | | | | | 450,000 | | | | | | 11,278 | | | | | | 6,829,510 | | |
| | | 2018 | | | | | | 300,000 | | | | | | — | | | | | | 1,724,100 | | | | | | — | | | | | | 211,250 | | | | | | 10,664 | | | | | | 2,246,014 | | | ||
Christopher Joyce(7)
General Counsel |
| | | | 2019 | | | | | | 343,750 | | | | | | — | | | | | | 1,352,745 | | | | | | 530,390 | | | | | | 158,000 | | | | | | 12,367 | | | | | | 2,397,252 | | |
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
2019
Incentive Units(1) ($) |
| |
Modification
of 2018 Incentive Units(2) ($) |
| |
Restricted
Stock(3) ($) |
| |
Founder
Shares(4) ($) |
| |
Total
($) |
| |||||||||||||||
Luke McGee
|
| | | | 1,718,640 | | | | | | 1,734,097 | | | | | | 436,500 | | | | | | 1,389,375 | | | | | | 5,278,612 | | |
Joshua Parnes
|
| | | | 1,718,640 | | | | | | 1,734,097 | | | | | | 436,500 | | | | | | 694,688 | | | | | | 4,583,925 | | |
Christopher Joyce
|
| | | | — | | | | | | 715,020 | | | | | | 174,600 | | | | | | 463,125 | | | | | | 1,352,745 | | |
| | | | | |
Option Awards
|
| |
Stock Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock That Have Not Vested (#) |
| |
Market Value
of Shares or Units of Stock That Have Not Vested ($) |
| |||||||||||||||
Luke McGee
|
| |
June 13, 2019(1)
|
| | | | — | | | | | | — | | | | | | — | | | |
—
|
| | | | 639,448 | | | | | | 7,021,135(4) | | |
|
November 21, 2019(2)
|
| | | | — | | | | | | — | | | | | | — | | | |
—
|
| | | | 150,000 | | | | | | 1,647,000(5) | | | ||
|
November 21, 2019(3)
|
| | | | — | | | | | | 1,250,000 | | | | | | 11.50 | | | |
November 21, 2029
|
| | | | — | | | | | | — | | | ||
Joshua Parnes
|
| |
June 13, 2019(1)
|
| | | | — | | | | | | — | | | | | | — | | | |
—
|
| | | | 639,448 | | | | | | 7,021,135(4) | | |
|
November 21, 2019(2)
|
| | | | — | | | | | | — | | | | | | — | | | |
—
|
| | | | 150,000 | | | | | | 1,647,000(5) | | | ||
|
November 21, 2019(3)
|
| | | | — | | | | | | 1,250,000 | | | | | | 11.50 | | | |
November 21, 2029
|
| | | | — | | | | | | — | | | ||
Christopher Joyce
|
| |
November 21, 2019(2)
|
| | | | — | | | | | | — | | | | | | — | | | |
—
|
| | | | 60,000 | | | | | | 658,800(5) | | |
|
November 21, 2019(3)
|
| | | | — | | | | | | 500,000 | | | | | | 11.50 | | | |
November 21, 2029
|
| | | | — | | | | | | — | | |
Name
|
| |
Fees Earned or
Paid in Cash(1) ($) |
| |
Stock
Awards(2) ($) |
| |
Total
($) |
| |||||||||
Richard Barasch
|
| | | | 12,500 | | | | | | 106,600 | | | | | | 119,100 | | |
Alan Quasha
|
| | | | 12,500 | | | | | | 66,625 | | | | | | 79,125 | | |
Terence Connors
|
| | | | 25,000 | | | | | | 53,300 | | | | | | 78,300 | | |
Susan Weaver, M.D.
|
| | | | 18,750 | | | | | | 53,300 | | | | | | 72,050 | | |
Dale Wolf
|
| | | | 12,500 | | | | | | 53,300 | | | | | | 65,800 | | |
| | |
Securities Beneficially Owned
Before this Offering |
| |
Securities Beneficially
Owned Upon Completion of this Offering (Assuming No Exercise of the Underwriters’ Option) |
| |
Securities Beneficially
Owned Upon Completion of this Offering (Assuming the Underwriters’ Option is Exercised in Full) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
% of Total
|
| |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
% of Total
|
| |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
% of Total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial
Owner(1) |
| |
# of
Shares |
| |
%
|
| |
# of
Shares |
| |
%
|
| |
Voting
Power(2) |
| |
# of
Shares |
| |
%
|
| |
# of
Shares |
| |
%
|
| |
Voting
Power(2) |
| |
# of
Shares |
| |
%
|
| |
# of
Shares |
| |
%
|
| |
Voting
Power(2) |
| |||||||||||||||||||||||||||||||||||||||||||||
Richard Barasch(3)
|
| | | | 863,217 | | | | | | 2.3% | | | | | | — | | | | | | — | | | | | | 1.4% | | | | | | 863,217 | | | | | | 2.3% | | | | | | — | | | | | | — | | | | | | 1.3% | | | | | | 863,217 | | | | | | 2.2% | | | | | | — | | | | | | — | | | | | | 1.3% | | |
Dr. Susan Weaver
|
| | | | 25,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 25,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 25,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Alan Quasha(4)
|
| | | | 6,250 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 6,250 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 6,250 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Terence Connors
|
| | | | 5,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 5,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 5,000 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Dale Wolf(5)
|
| | | | 15,500 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 15,500 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 15,500 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Luke McGee(6)
|
| | | | 894,951 | | | | | | 2.4% | | | | | | 4,526,028 | | | | | | 15.9% | | | | | | 9.1% | | | | | | 894,951 | | | | | | 2.4% | | | | | | 4,526,028 | | | | | | 15.9% | | | | | | 8.2% | | | | | | 894,951 | | | | | | 2.3% | | | | | | 4,526,028 | | | | | | 15.9% | | | | | | 8.1% | | |
Joshua Parnes
|
| | | | 223,125 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 223,125 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 223,125 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | |
Christopher Joyce(7)
|
| | | | 143,218 | | | | | | * | | | | | | 266,331 | | | | | | * | | | | | | * | | | | | | 143,218 | | | | | | * | | | | | | 266,331 | | | | | | * | | | | | | * | | | | | | 143,218 | | | | | | * | | | | | | 266,331 | | | | | | * | | | | | | * | | |
Everest Trust(8)
|
| | | | 15,105,280 | | | | | | 39.4% | | | | | | 856,044 | | | | | | 3.0% | | | | | | 26.4% | | | | | | 15,105,280 | | | | | | 39.3% | | | | | | 856,044 | | | | | | 3.0% | | | | | | 23.9% | | | | | | 15,105,280 | | | | | | 38.4% | | | | | | 856,044 | | | | | | 3.0% | | | | | | 23.5% | | |
Still Water Nevada
Trust(9) |
| | | | 1,079,189 | | | | | | 2.8% | | | | | | 8,338,659 | | | | | | 29.3% | | | | | | 15.7% | | | | | | 1,079,189 | | | | | | 2.8% | | | | | | 8,338,659 | | | | | | 29.3% | | | | | | 14.2% | | | | | | 1,079,189 | | | | | | 2.8% | | | | | | 8,338,659 | | | | | | 29.3% | | | | | | 13.9% | | |
The Mykonos 2019 NGCG
NevadaTrust(10) |
| | | | 525,586 | | | | | | 1.4% | | | | | | 5,613,851 | | | | | | 19.7% | | | | | | 10.2% | | | | | | 525,586 | | | | | | 1.4% | | | | | | 5,613,851 | | | | | | 19.7% | | | | | | 9.2% | | | | | | 525,586 | | | | | | 1.4% | | | | | | 5,613,851 | | | | | | 19.7% | | | | | | 9.1% | | |
McLarty Capital Partners SBIC, L.P.(11)
|
| | | | — | | | | | | — | | | | | | 4,526,189 | | | | | | 15.9% | | | | | | 7.6% | | | | | | — | | | | | | — | | | | | | 4,526,189 | | | | | | 15.9% | | | | | | 6.9% | | | | | | — | | | | | | — | | | | | | 4,526,189 | | | | | | 15.9% | | | | | | 6.8% | | |
BlueMountain Capital Management,LLC(12)
|
| | | | 3,647,353 | | | | | | 9.9% | | | | | | 150,581 | | | | | | * | | | | | | 6.4% | | | | | | 3,647,353 | | | | | | 9.7% | | | | | | 150,581 | | | | | | * | | | | | | 5.8% | | | | | | 3,647,353 | | | | | | 9.4% | | | | | | 150,581 | | | | | | * | | | | | | 5.7% | | |
All directors and executive officers as a group(10 individuals)
|
| | | | 2,433,065 | | | | | | 6.3% | | | | | | 5,720,486 | | | | | | 20.1% | | | | | | 13.5% | | | | | | 2,433,065 | | | | | | 6.3% | | | | | | 5,820,486 | | | | | | 20.1% | | | | | | 12.2% | | | | | | 2,433,065 | | | | | | 6.2% | | | | | | 5,820,486 | | | | | | 20.1% | | | | | | 12.0% | | |
Underwriter
|
| |
Number of Shares
|
| |||
Jefferies LLC
|
| |
|
| |||
Deutsche Bank Securities Inc.
|
| | | | | | |
UBS Securities LLC
|
| | | | | | |
RBC Capital Markets, LLC
|
| | | | | | |
Stifel, Nicolaus & Company, Incorporated
|
| | | | | | |
Canaccord Genuity LLC
|
| | | | | | |
Regions Securities LLC
|
| | | | | | |
Total
|
| | | | 6,500,000 | | |
| | |
Per Share
|
| |
Total
|
| ||||||||||||||||||
| | |
Without
Option to Purchase Additional Shares |
| |
With
Option to Purchase Additional Shares |
| |
Without
Option to Purchase Additional Shares |
| |
With
Option to Purchase Additional Shares |
| ||||||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Underwriting discounts and commissions paid by us
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Proceeds to us, before expenses
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | |
| | |
Page
|
| |||
AdaptHealth Corp. | | | | | | | |
Consolidated Interim Financial Statements (Unaudited) | | | | | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
Consolidated Financial Statements (Audited) | | | | | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | | |
| | | | F-30 | | | |
| | | | F-32 | | | |
| | | | F-33 | | | |
Patient Care Solutions Business | | | | | | | |
Audited Combined Financial Statements | | | | | | | |
| | | | F-74 | | | |
| | | | F-75 | | | |
| | | | F-76 | | | |
| | | | F-77 | | | |
| | | | F-78 | | | |
| | | | F-79 | | | |
Unaudited Combined Financial Statements | | | | | | | |
| | | | F-93 | | | |
| | | | F-94 | | | |
| | | | F-95 | | | |
| | | | F-96 | | | |
| | | | F-97 | | | |
Solara Medical Supplies, LLC | | | | | | | |
Unaudited Consolidated Interim Financial Statements | | | | | | | |
| | | | F-111 | | | |
| | | | F-112 | | | |
| | | | F-113 | | |
| | |
Page
|
| |||
| | | | F-114 | | | |
| | | | F-115 | | | |
Audited Consolidated Financial Statements | | | | | | | |
| | | | F-126 | | | |
| | | | F-127 | | | |
| | | | F-128 | | | |
| | | | F-129 | | | |
| | | | F-130 | | | |
| | | | F-131 | | | |
| | | | F-132 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
Assets
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 48,163,701 | | | | | $ | 76,878,134 | | |
Accounts receivable
|
| | | | 118,650,575 | | | | | | 78,619,230 | | |
Inventory
|
| | | | 17,967,948 | | | | | | 13,239,037 | | |
Prepaid and other current assets
|
| | | | 9,759,439 | | | | | | 12,678,423 | | |
Total current assets
|
| | | | 194,541,663 | | | | | | 181,414,824 | | |
Equipment and other fixed assets, net
|
| | | | 87,300,924 | | | | | | 63,559,080 | | |
Goodwill
|
| | | | 340,806,853 | | | | | | 266,790,518 | | |
Other assets
|
| | | | 5,670,301 | | | | | | 6,851,892 | | |
Deferred tax assets
|
| | | | 33,518,857 | | | | | | 27,505,379 | | |
Total Assets
|
| | | $ | 661,838,598 | | | | | $ | 546,121,693 | | |
Liabilities and Stockholders’ Deficit
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 136,071,887 | | | | | $ | 102,728,093 | | |
Current portion of capital lease obligations
|
| | | | 20,421,195 | | | | | | 19,749,854 | | |
Current portion of long-term debt
|
| | | | 2,615,705 | | | | | | 1,721,132 | | |
Contract liabilities
|
| | | | 15,584,066 | | | | | | 9,556,423 | | |
Other liabilities
|
| | | | 16,459,388 | | | | | | 17,138,684 | | |
Total current liabilities
|
| | | | 191,152,241 | | | | | | 150,894,186 | | |
Long-term debt, less current portion
|
| | | | 463,552,896 | | | | | | 395,111,563 | | |
Other long-term liabilities
|
| | | | 36,580,187 | | | | | | 29,364,151 | | |
Total Liabilities
|
| | | | 691,285,324 | | | | | | 575,369,900 | | |
Commitments and contingencies (note 14) | | | | | | | | | | | | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Class A Common Stock, par value of $0.0001 per share, 210,000,000 shares
authorized; 43,354,251 and 40,816,292 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively |
| | | | 4,336 | | | | | | 4,082 | | |
Class B Common Stock, par value of $0.0001 per share, 35,000,000 shares authorized; 30,563,799 and 31,563,799 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively
|
| | | | 3,056 | | | | | | 3,156 | | |
Preferred Stock, par value of $0.0001 per share, 5,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2020 and December 31, 2019
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 21,843,967 | | | | | | 11,252,052 | | |
Accumulated deficit
|
| | | | (27,367,676) | | | | | | (27,209,514) | | |
Accumulated other comprehensive (loss) income
|
| | | | (5,139,138) | | | | | | 1,431,029 | | |
Total stockholders’ deficit attributable to AdaptHealth Corp.
|
| | | | (10,655,455) | | | | | | (14,519,195) | | |
Noncontrolling interests in subsidiaries
|
| | | | (18,791,271) | | | | | | (14,729,012) | | |
Total Stockholders’ Deficit
|
| | | | (29,446,726) | | | | | | (29,248,207) | | |
Total Liabilities and Stockholders’ Deficit
|
| | | $ | 661,838,598 | | | | | $ | 546,121,693 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net revenue
|
| | | $ | 191,439,034 | | | | | $ | 119,498,274 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of net revenue
|
| | | | 166,539,690 | | | | | | 100,226,876 | | |
General and administrative expenses
|
| | | | 14,346,919 | | | | | | 13,082,631 | | |
Depreciation, excluding patient equipment depreciation
|
| | | | 1,241,837 | | | | | | 840,722 | | |
Total costs and expenses
|
| | | | 182,128,446 | | | | | | 114,150,229 | | |
Operating income
|
| | | | 9,310,588 | | | | | | 5,348,045 | | |
Interest expense, net
|
| | | | 7,938,243 | | | | | | 6,260,331 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | 2,121,451 | | |
Income (loss) before income taxes
|
| | | | 1,372,345 | | | | | | (3,033,737) | | |
Income tax expense
|
| | | | 1,106,722 | | | | | | 2,418,441 | | |
Net income (loss)
|
| | | | 265,623 | | | | | | (5,452,178) | | |
Income attributable to noncontrolling interests
|
| | | | 423,785 | | | | | | 348,139 | | |
Net loss attributable to AdaptHealth Corp.
|
| | | $ | (158,162) | | | | | $ | (5,800,317) | | |
Net loss per common share attributable to AdaptHealth Corp.: | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | — | | | | | $ | (0.42) | | |
Weighted average shares outstanding for net loss attributable to AdaptHealth Corp.:
|
| | | | | | | | | | | | |
Basic and diluted
|
| | | | 41,976,560 | | | | | | 13,863,570 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net income (loss)
|
| | | $ | 265,623 | | | | | $ | (5,452,178) | | |
Other comprehensive loss: | | | | | | | | | | | | | |
Interest rate swap agreements, inclusive of reclassification adjustment
|
| | | | (11,417,216) | | | | | | — | | |
Comprehensive loss
|
| | | | (11,151,593) | | | | | | (5,452,178) | | |
Income attributable to noncontrolling interests
|
| | | | 423,785 | | | | | | 348,139 | | |
Comprehensive loss attributable to AdaptHealth Corp.
|
| | | $ | (11,575,378) | | | | | $ | (5,800,317) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
paid-in capital |
| |
Members’
interest |
| |
Controlling
interest members’ deficit |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income (loss) |
| |
Noncontrolling
interests in subsidiaries |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019
|
| | | | 40,816,292 | | | | | $ | 4,082 | | | | | | 31,563,799 | | | | | $ | 3,156 | | | | | $ | 11,252,052 | | | | | $ | — | | | | | $ | — | | | | | $ | (27,209,514) | | | | | $ | 1,431,029 | | | | | $ | (14,729,012) | | | | | $ | (29,248,207) | | |
Issuance of Class A Common Stock for an acquisition
|
| | | | 386,874 | | | | | | 39 | | | | | | — | | | | | | — | | | | | | 6,247,976 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,248,015 | | |
Exchange of Class B Common Stock for Class A Common Stock
|
| | | | 1,000,000 | | | | | | 100 | | | | | | (1,000,000) | | | | | | (100) | | | | | | (361,005) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 361,005 | | | | | | — | | |
Cashless exercise of warrants
|
| | | | 1,092,468 | | | | | | 109 | | | | | | — | | | | | | — | | | | | | (109) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Equity-based compensation
|
| | | | 58,617 | | | | | | 6 | | | | | | — | | | | | | — | | | | | | 2,222,603 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,222,609 | | |
Net income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (158,162) | | | | | | — | | | | | | 423,785 | | | | | | 265,623 | | |
Equity activity resulting from Tax Receivable Agreement
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,482,450 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,482,450 | | |
Change in fair value of interest rate
swaps, inclusive of reclassification adjustment |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,570,167) | | | | | | (4,847,049) | | | | | | (11,417,216) | | |
Balance, March 31, 2020
|
| | | | 43,354,251 | | | | | $ | 4,336 | | | | | | 30,563,799 | | | | | $ | 3,056 | | | | | $ | 21,843,967 | | | | | $ | — | | | | | $ | — | | | | | $ | (27,367,676) | | | | | $ | (5,139,138) | | | | | $ | (18,791,271) | | | | | $ | (29,446,726) | | |
|
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
paid-in capital |
| |
Members’
interest |
| |
Controlling
interest members’ deficit |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income |
| |
Noncontrolling
interests in subsidiaries |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 113,274,181 | | | | | $ | (13,370,648) | | | | | $ | — | | | | | $ | — | | | | | $ | 2,865,125 | | | | | $ | 102,768,658 | | |
Issuance of members’ interest, net of offering costs of $837,156
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,162,844 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,162,844 | | |
Redemption of members’ interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,112,500) | | | | | | (1,600,955) | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,713,455) | | |
Distributions to members
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (250,000,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | (250,000,000) | | |
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,223,108 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,223,108 | | |
Net income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,800,317) | | | | | | — | | | | | | — | | | | | | 348,139 | | | | | | (5,452,178) | | |
Balance, March 31, 2019
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 135,547,633 | | | | | $ | (270,771,920) | | | | | $ | — | | | | | $ | — | | | | | $ | 3,213,264 | | | | | $ | (132,011,023) | | |
|
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 265,623 | | | | | $ | (5,452,178) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation, including patient equipment depreciation
|
| | | | 16,740,154 | | | | | | 14,971,628 | | |
Equity-based compensation
|
| | | | 2,222,609 | | | | | | 5,223,108 | | |
Deferred income tax
|
| | | | 479,092 | | | | | | 1,483,430 | | |
Change in fair value of interest rate swaps, net of reclassification adjustment
|
| | | | (707,381) | | | | | | 2,702,400 | | |
Change in fair value of contingent consideration
|
| | | | (2,000,000) | | | | | | — | | |
Amortization of deferred financing costs
|
| | | | 391,591 | | | | | | 136,801 | | |
Write-off of deferred financing costs
|
| | | | — | | | | | | 2,121,451 | | |
Gain on sale of investment
|
| | | | (590,701) | | | | | | — | | |
Changes in operating assets and liabilities, net of effects from acquisitions:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (20,457,579) | | | | | | (8,636,030) | | |
Inventory
|
| | | | 51,528 | | | | | | (161,065) | | |
Prepaid and other assets
|
| | | | 3,908,676 | | | | | | (172,468) | | |
Accounts payable and accrued expenses
|
| | | | 24,076,642 | | | | | | 4,015,039 | | |
Net cash provided by operating activities
|
| | | | 24,380,254 | | | | | | 16,232,116 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of equipment and other fixed assets
|
| | | | (7,534,433) | | | | | | (5,297,940) | | |
Proceeds from sale of investment
|
| | | | 2,045,701 | | | | | | — | | |
Payments for business acquisitions, net of cash acquired
|
| | | | (105,840,930) | | | | | | (20,881,343) | | |
Net cash used in investing activities
|
| | | | (111,329,662) | | | | | | (26,179,283) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from borrowings on long-term debt and lines of credit
|
| | | | 70,000,000 | | | | | | 317,000,000 | | |
Repayments on long-term debt and lines of credit
|
| | | | (984,480) | | | | | | (151,916,121) | | |
Payments on capital leases
|
| | | | (10,780,545) | | | | | | (9,874,276) | | |
Proceeds from issuance of promissory note payable
|
| | | | — | | | | | | 100,000,000 | | |
Proceeds from issuance of members’ interests
|
| | | | — | | | | | | 20,000,000 | | |
Payments for equity issuance costs
|
| | | | — | | | | | | (837,156) | | |
Payments of deferred financing costs
|
| | | | — | | | | | | (9,027,753) | | |
Distributions to members
|
| | | | — | | | | | | (250,000,000) | | |
Payment of contingent consideration
|
| | | | — | | | | | | (12,000,000) | | |
Payments for redemption of members’ interests
|
| | | | — | | | | | | (3,713,455) | | |
Net cash provided by (used in) financing activities
|
| | | | 58,234,975 | | | | | | (368,761) | | |
Net decrease in cash and cash equivalents
|
| | | | (28,714,433) | | | | | | (10,315,928) | | |
Cash and cash equivalents at beginning of period
|
| | | | 76,878,134 | | | | | | 25,185,681 | | |
Cash and cash equivalents at end of period
|
| | | $ | 48,163,701 | | | | | $ | 14,869,753 | | |
Supplemental disclosures: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 7,704,405 | | | | | $ | 2,829,928 | | |
Cash paid for income taxes
|
| | | | 2,085,831 | | | | | | 39,244 | | |
Noncash investing and financing activities:
|
| | | | | | | | | | | | |
Equipment acquired under capital lease obligations
|
| | | $ | 9,757,735 | | | | | $ | 8,564,442 | | |
Unpaid equipment and other fixed asset purchases at end of period
|
| | | | 7,814,170 | | | | | | 11,073,629 | | |
Equity consideration issued in connection with an acquisition
|
| | | | 6,248,015 | | | | | | — | | |
Contingent purchase price in connection with an acquisition
|
| | | | — | | | | | | 1,500,000 | | |
Seller note issued in connection with an acquisition
|
| | | | — | | | | | | 2,000,000 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Insurance
|
| | | $ | 114,450,697 | | | | | $ | 67,717,162 | | |
Government
|
| | | | 51,244,994 | | | | | | 38,100,765 | | |
Patient pay
|
| | | | 25,743,343 | | | | | | 13,680,347 | | |
Net revenue
|
| | | $ | 191,439,034 | | | | | $ | 119,498,274 | | |
|
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net sales revenue: | | | | | | | | | | | | | |
Sleep
|
| | | $ | 68,893,964 | | | | | $ | 47,127,169 | | |
Supplies to the home
|
| | | | 33,338,901 | | | | | | 2,028,936 | | |
HME
|
| | | | 11,579,127 | | | | | | 10,489,009 | | |
Respiratory
|
| | | | 2,768,427 | | | | | | 1,279,075 | | |
Other
|
| | | | 12,393,306 | | | | | | 8,031,775 | | |
Total net sales revenue
|
| | | $ | 128,973,725 | | | | | $ | 68,955,964 | | |
Net revenue from fixed monthly equipment reimbursements: | | | | | | | | | | | | | |
Sleep
|
| | | $ | 22,668,559 | | | | | $ | 18,056,858 | | |
HME
|
| | | | 12,177,277 | | | | | | 10,242,636 | | |
Respiratory
|
| | | | 25,006,951 | | | | | | 20,429,189 | | |
Other
|
| | | | 2,612,522 | | | | | | 1,813,627 | | |
Total net revenue from fixed monthly equipment reimbursements
|
| | | $ | 62,465,309 | | | | | $ | 50,542,310 | | |
Total net revenue: | | | | | | | | | | | | | |
Sleep
|
| | | $ | 91,562,523 | | | | | $ | 65,184,027 | | |
Supplies to the home
|
| | | | 33,338,901 | | | | | | 2,028,936 | | |
HME
|
| | | | 23,756,404 | | | | | | 20,731,645 | | |
Respiratory
|
| | | | 27,775,378 | | | | | | 21,708,264 | | |
Other
|
| | | | 15,005,828 | | | | | | 9,845,402 | | |
Total net revenue
|
| | | $ | 191,439,034 | | | | | $ | 119,498,274 | | |
|
Cash consideration
|
| | | $ | 106,178,017 | | |
|
Equity consideration
|
| | | | 6,248,015 | | |
|
Deferred payments
|
| | | | 14,250 | | |
|
Total
|
| | | $ | 112,440,282 | | |
|
Cash
|
| | | $ | 337,087 | | |
|
Accounts receivable
|
| | | | 19,573,766 | | |
|
Inventory
|
| | | | 4,780,439 | | |
|
Prepaid and other current assets
|
| | | | 1,334,306 | | |
|
Equipment and other fixed assets
|
| | | | 24,406,410 | | |
|
Goodwill
|
| | | | 74,016,335 | | |
|
Accounts payable and accrued expenses
|
| | | | (6,494,599) | | |
|
Contract liabilities
|
| | | | (2,467,643) | | |
|
Unfavorable lease liability
|
| | | | (1,418,931) | | |
|
Capital lease obligations
|
| | | | (1,626,888) | | |
|
Net assets acquired
|
| | | $ | 112,440,282 | | |
|
Cash consideration
|
| | | $ | 21,562,495 | | |
|
Seller note
|
| | | | 2,000,000 | | |
|
Estimated contingent consideration
|
| | | | 1,500,000 | | |
|
Total
|
| | | $ | 25,062,495 | | |
|
Cash
|
| | | $ | 117,000 | | |
|
Accounts receivable
|
| | | | 3,691,030 | | |
|
Inventory
|
| | | | 2,468,427 | | |
|
Prepaid and other current assets
|
| | | | 11,835 | | |
|
Equipment and other fixed assets
|
| | | | 1,658,714 | | |
|
Goodwill
|
| | | | 19,381,515 | | |
|
Accounts payable and accrued expenses
|
| | | | (2,266,026) | | |
|
Net assets acquired
|
| | | $ | 25,062,495 | | |
|
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net revenue
|
| | | $ | 204,619,618 | | | | | $ | 181,724,059 | | |
Operating income (loss)
|
| | | $ | 9,082,482 | | | | | $ | (4,746,892) | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net revenue
|
| | | $ | 40,724,747 | | | | | $ | 8,626,378 | | |
Operating income (loss)
|
| | | $ | (5,559,851) | | | | | $ | 1,431,523 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
Patient medical equipment
|
| | | $ | 132,311,790 | | | | | $ | 112,070,831 | | |
Vehicles
|
| | | | 6,916,895 | | | | | | 4,461,041 | | |
Other
|
| | | | 18,456,871 | | | | | | 15,474,589 | | |
| | | | | 157,685,556 | | | | | | 132,006,461 | | |
Less accumulated depreciation
|
| | | | (70,384,632) | | | | | | (68,447,381) | | |
| | | | $ | 87,300,924 | | | | | $ | 63,559,080 | | |
|
Balance at December 31, 2019
|
| | | $ | 266,790,518 | | |
|
Acquired goodwill during the period
|
| | | | 74,016,335 | | |
|
Balance at March 31, 2020
|
| | | $ | 340,806,853 | | |
Level input
|
| |
Input Definition
|
|
Level 1 | | | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | |
Level 2 | | | Inputs, other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | |
Level 3 | | | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Fair Value
|
| ||||||||||||
March 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 4,117,161 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,117,161 | | |
Total assets measured at fair value
|
| | | $ | 4,117,161 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,117,161 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition-related contingent consideration-short term
|
| | | $ | — | | | | | $ | — | | | | | $ | 7,675,000 | | | | | $ | 7,675,000 | | |
Acquisition-related contingent consideration-long
term |
| | | | — | | | | | | — | | | | | | 5,050,000 | | | | | | 5,050,000 | | |
Interest rate swap agreements-short term
|
| | | | — | | | | | | 5,373,647 | | | | | | — | | | | | | 5,373,647 | | |
Interest rate swap agreements-long term
|
| | | | — | | | | | | 13,675,476 | | | | | | — | | | | | | 13,675,476 | | |
Total liabilities measured at fair value
|
| | | $ | — | | | | | $ | 19,049,123 | | | | | $ | 12,725,000 | | | | | $ | 31,774,123 | | |
|
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Fair Value
|
| ||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 54,014,591 | | | | | $ | — | | | | | $ | — | | | | | $ | 54,014,591 | | |
Total assets measured at fair value
|
| | | $ | 54,014,591 | | | | | $ | — | | | | | $ | — | | | | | $ | 54,014,591 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition-related contingent consideration-short term
|
| | | $ | — | | | | | $ | — | | | | | $ | 4,825,000 | | | | | $ | 4,825,000 | | |
Acquisition-related contingent consideration-long
term |
| | | | — | | | | | | — | | | | | | 9,900,000 | | | | | | 9,900,000 | | |
Interest rate swap agreements-short term
|
| | | | — | | | | | | 2,157,324 | | | | | | — | | | | | | 2,157,324 | | |
Interest rate swap agreements-long term
|
| | | | — | | | | | | 6,181,964 | | | | | | — | | | | | | 6,181,964 | | |
Total liabilities measured at fair value
|
| | | $ | — | | | | | $ | 8,339,288 | | | | | $ | 14,725,000 | | | | | $ | 23,064,288 | | |
Three Months Ended March 31, 2020
|
| |
Beginning
Balance |
| |
Additions
|
| |
Payments
|
| |
Change in
Fair Value |
| |
Ending
Balance |
| |||||||||||||||
Contingent consideration – Level 3 liabilities
|
| | | $ | 14,725,000 | | | | | $ | — | | | | | $ | — | | | | | $ | (2,000,000) | | | | | $ | 12,725,000 | | |
Three Months Ended March 31, 2019
|
| |
Beginning
Balance |
| |
Additions
|
| |
Payments
|
| |
Change in
Fair Value |
| |
Ending
Balance |
| |||||||||||||||
Contingent consideration – Level 3 liabilities
|
| | | $ | 15,250,000 | | | | | $ | 1,500,000 | | | | | $ | (12,000,000) | | | | | $ | — | | | | | $ | 4,750,000 | | |
| | |
As of March 31, 2020
|
| ||||||
| | |
Balance Sheet
Location |
| |
Fair Value
Asset (Liability) |
| |||
Derivatives designated as hedging instruments: | | | | | | | | | | |
Interest rate swap agreements
|
| | Other current liabilities | | | | $ | (5,373,647) | | |
Interest rate swap agreements
|
| |
Other long-term liabilities
|
| | | | (13,675,476) | | |
Total derivatives designated as hedging instruments
|
| | | | | | $ | (19,049,123) | | |
|
| | |
As of December 31, 2019
|
| ||||||
| | |
Balance Sheet
Location |
| |
Fair Value
Asset (Liability) |
| |||
Derivatives designated as hedging instruments: | | | | | | | | | | |
Interest rate swap agreements
|
| | Other current liabilities | | | | $ | (2,157,324) | | |
Interest rate swap agreements
|
| |
Other long-term liabilities
|
| | | | (6,181,964) | | |
Total derivatives designated as hedging instruments
|
| | | | | | $ | (8,339,288) | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
Accounts payable
|
| | | $ | 105,194,402 | | | | | $ | 79,237,323 | | |
Employee related accruals
|
| | | | 9,002,909 | | | | | | 12,319,746 | | |
Accrued interest
|
| | | | 4,672,868 | | | | | | 4,021,660 | | |
Other
|
| | | | 17,201,708 | | | | | | 7,149,364 | | |
Total
|
| | | $ | 136,071,887 | | | | | $ | 102,728,093 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
Secured term loans
|
| | | $ | 295,937,500 | | | | | $ | 246,250,000 | | |
Revolving credit facility
|
| | | | 32,000,000 | | | | | | 12,000,000 | | |
Note payable
|
| | | | 143,500,000 | | | | | | 143,500,000 | | |
Other
|
| | | | 1,053,205 | | | | | | 1,725,185 | | |
Unamortized deferred financing fees
|
| | | | (6,322,104) | | | | | | (6,642,490) | | |
| | | | | 466,168,601 | | | | | | 396,832,695 | | |
Current portion
|
| | | | (2,615,705) | | | | | | (1,721,132) | | |
Long-term portion
|
| | | $ | 463,552,896 | | | | | $ | 395,111,563 | | |
| | |
Number of
Shares of Restricted Stock |
| |
Weighted-
Average Grant Date Fair Value per Share |
| ||||||
Non-vested balance at January 1, 2020
|
| | | | 901,250 | | | | | $ | 5.83 | | |
Granted
|
| | | | 621,123 | | | | | $ | 16.35 | | |
Vested
|
| | | | (15,417) | | | | | $ | 16.35 | | |
Forfeited
|
| | | | (20,000) | | | | | $ | 8.11 | | |
Non-vested balance at March 31, 2020
|
| | | | 1,486,956 | | | | | $ | 10.09 | | |
Twelve months ended March 31,
|
| | | | | | |
2021
|
| | | $ | 20,442,099 | | |
2022
|
| | | | 215,164 | | |
Total
|
| | | | 20,657,263 | | |
Less amount representing interest
|
| | | | (70,192) | | |
| | | | | 20,587,071 | | |
Current portion
|
| | | | (20,421,195) | | |
Long-term portion
|
| | | $ | 165,876 | | |
Twelve months ended March 31,
|
| | | | | | |
2021
|
| | | $ | 16,547,233 | | |
2022
|
| | | | 11,746,784 | | |
2023
|
| | | | 9,823,064 | | |
2024
|
| | | | 8,316,930 | | |
2025
|
| | | | 6,390,029 | | |
Thereafter
|
| | | | 17,668,659 | | |
Total minimum payments required(a)
|
| | | $ | 70,492,699 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 76,878,134 | | | | | $ | 25,185,681 | | |
Accounts receivable
|
| | | | 78,619,230 | | | | | | 53,016,649 | | |
Inventory
|
| | | | 13,239,037 | | | | | | 7,672,646 | | |
Prepaid and other current assets
|
| | | | 12,678,423 | | | | | | 4,915,277 | | |
Total current assets
|
| | | | 181,414,824 | | | | | | 90,790,253 | | |
Equipment and other fixed assets, net
|
| | | | 63,559,080 | | | | | | 61,601,350 | | |
Goodwill
|
| | | | 266,790,518 | | | | | | 202,436,212 | | |
Other assets
|
| | | | 6,851,892 | | | | | | 5,049,628 | | |
Deferred tax asset
|
| | | | 27,505,379 | | | | | | 9,079,190 | | |
Total Assets
|
| | | $ | 546,121,693 | | | | | $ | 368,956,633 | | |
Liabilities and Stockholders’ Equity (Deficit) / Members’ Equity (Deficit)
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 102,728,093 | | | | | $ | 85,558,419 | | |
Current portion of capital lease obligations
|
| | | | 19,749,854 | | | | | | 20,814,404 | | |
Current portion of long-term debt
|
| | | | 1,721,132 | | | | | | 7,089,976 | | |
Contract liabilities
|
| | | | 9,556,423 | | | | | | 7,508,428 | | |
Other liabilities
|
| | | | 17,138,684 | | | | | | 14,705,719 | | |
Total current liabilities
|
| | | | 150,894,186 | | | | | | 135,676,946 | | |
Long-term debt, less current portion
|
| | | | 395,111,563 | | | | | | 127,094,723 | | |
Capital lease obligations, less current portion
|
| | | | 233,139 | | | | | | 172,467 | | |
Other long-term liabilities
|
| | | | 29,131,012 | | | | | | 3,243,839 | | |
Total Liabilities
|
| | | | 575,369,900 | | | | | | 266,187,975 | | |
Commitments and contingencies (note 2(p)) | | | | | | | | | | | | | |
Stockholders’ Equity (Deficit) / Members’ Equity (Deficit) | | | | | | | | | | | | | |
Class A Common Stock, par value of $0.0001 per share, 210,000,000 shares authorized; 40,816,292 shares issued and outstanding as of December 31, 2019
|
| | | | 4,082 | | | | | | — | | |
Class B Common Stock, par value of $0.0001 per share, 35,000,000 shares authorized; 31,563,799 shares issued and outstanding as of December 31, 2019
|
| | | | 3,156 | | | | | | — | | |
Preferred Stock, par value of $0.0001 per share, 5,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2019
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 11,252,052 | | | | | | — | | |
Accumulated deficit
|
| | | | (27,209,514) | | | | | | — | | |
Members’ interest
|
| | | | — | | | | | | 113,274,181 | | |
Controlling interest members’ deficit
|
| | | | — | | | | | | (13,370,648) | | |
Accumulated other comprehensive income
|
| | | | 1,431,029 | | | | | | — | | |
Total stockholders’ equity (deficit) / members’ equity (deficit) attributable to AdaptHealth Corp.
|
| | | | (14,519,195) | | | | | | 99,903,533 | | |
Noncontrolling interests in subsidiaries
|
| | | | (14,729,012) | | | | | | 2,865,125 | | |
Total Stockholders’ Equity (Deficit) / Members’ Equity (Deficit)
|
| | | | (29,248,207) | | | | | | 102,768,658 | | |
Total Liabilities and Stockholders’ Equity (Deficit) / Members’ Equity
(Deficit) |
| | | $ | 546,121,693 | | | | | $ | 368,956,633 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Revenue: | | | | | | | | | | | | | |
Revenue, net of contractual allowances and discounts
|
| | | | | | | | | $ | 361,053,975 | | |
Provision for doubtful accounts
|
| | | | | | | | | | (15,775,638) | | |
Net revenue
|
| | | $ | 529,644,247 | | | | | | 345,278,337 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of net revenue
|
| | | | 440,386,387 | | | | | | 293,384,635 | | |
General and administrative expenses
|
| | | | 56,492,554 | | | | | | 18,068,821 | | |
Depreciation, excluding patient equipment depreciation
|
| | | | 3,068,477 | | | | | | 2,733,807 | | |
Total costs and expenses
|
| | | | 499,947,418 | | | | | | 314,187,263 | | |
Operating income
|
| | | | 29,696,829 | | | | | | 31,091,074 | | |
Interest expense, net
|
| | | | 39,304,488 | | | | | | 7,452,737 | | |
Loss on extinguishment of debt, net
|
| | | | 2,121,451 | | | | | | 1,398,929 | | |
(Loss) income before income taxes
|
| | | | (11,729,110) | | | | | | 22,239,408 | | |
Income tax expense (benefit)
|
| | | | 1,156,002 | | | | | | (2,097,705) | | |
Net (loss) income
|
| | | | (12,885,112) | | | | | | 24,337,113 | | |
Income attributable to noncontrolling interests
|
| | | | 2,110,783 | | | | | | 1,076,766 | | |
Net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (14,995,895) | | | | | $ | 23,260,347 | | |
Net (loss) income per common share: | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.66) | | | | | $ | 1.95 | | |
Weighted average shares outstanding for net (loss) income attributable to AdaptHealth Corp.:
|
| | | | | | | | | | | | |
Basic and diluted
|
| | | | 22,557,213 | | | | | | 11,899,898 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Net (loss) income
|
| | | $ | (12,885,112) | | | | | $ | 24,337,113 | | |
Other comprehensive income: | | | | | | | | | | | | | |
Interest rate swap agreements, net of reclassification adjustment
|
| | | | 2,536,836 | | | | | | — | | |
Comprehensive (loss) income
|
| | | | (10,348,276) | | | | | | 24,337,113 | | |
Net income attributable to noncontrolling interests
|
| | | | 2,110,783 | | | | | | 1,076,766 | | |
Comprehensive (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (12,459,059) | | | | | $ | 23,260,347 | | |
| | |
Class A Common
Stock |
| |
Class B Common
Stock |
| |
Preferred Stock
|
| |
Additional
paid-in capital |
| |
Members’
interest |
| |
Controlling
interest members’ deficit |
| |
Accumulated
Deficit |
| |
Accumulated
other comprehensive income |
| |
Noncontrolling
interests in subsidiaries |
| |
Total
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 33,455,223 | | | | | $ | (36,180,242) | | | | | $ | — | | | | | $ | — | | | | | $ | 2,088,359 | | | | | $ | (636,660) | | |
Accrued return on members’
interest |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 316,403 | | | | | | (316,403) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of members’ interest for acquisitions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 78,484,832 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 78,484,832 | | |
Cashless exercise of members’ interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 134,350 | | | | | | (134,350) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 883,373 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 883,373 | | |
Distributions to noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (300,000) | | | | | | (300,000) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,260,347 | | | | | | — | | | | | | — | | | | | | 1,076,766 | | | | | | 24,337,113 | | |
Balance, December 31, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 113,274,181 | | | | | $ | (13,370,648) | | | | | $ | — | | | | | $ | — | | | | | $ | 2,865,125 | | | | | $ | 102,768,658 | | |
Activity prior to the Business Combination:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of members’ interest, net
of offering costs of $837,156 |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,162,844 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,162,844 | | |
Redemption of members’
interest |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,112,500) | | | | | | (1,600,955) | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,713,455) | | |
Distributions to members
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (250,000,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | (250,000,000) | | |
Distributions to noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,338,383) | | | | | | (1,338,383) | | |
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,914,677 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,914,677 | | |
Net income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,315,045) | | | | | | — | | | | | | — | | | | | | 1,531,838 | | | | | | (14,783,207) | | |
Effects of the Business Combination:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recapitalization
|
| | | | 27,796,166 | | | | | | 2,780 | | | | | | 34,113,799 | | | | | | 3,411 | | | | | | — | | | | | | — | | | | | | — | | | | | | (137,239,202) | | | | | | 281,286,648 | | | | | | (63,289,710) | | | | | | — | | | | | | (47,995,919) | | | | | | 32,768,008 | | |
Proceeds from sale of Class A Common Stock
|
| | | | 12,500,000 | | | | | | 1,250 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 69,561,286 | | | | | | — | | | | | | 55,437,464 | | | | | | 125,000,000 | | |
| | |
Class A Common
Stock |
| |
Class B Common
Stock |
| |
Preferred Stock
|
| |
Additional
paid-in capital |
| |
Members’
interest |
| |
Controlling
interest members’ deficit |
| |
Accumulated
Deficit |
| |
Accumulated
other comprehensive income |
| |
Noncontrolling
interests in subsidiaries |
| |
Total
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of Class B Common
Stock |
| | | | — | | | | | | — | | | | | | (2,000,000) | | | | | | (200) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (11,129,806) | | | | | | — | | | | | | (8,869,994) | | | | | | (20,000,000) | | |
Conversion of equity to long-term debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,207,763) | | | | | | — | | | | | | (19,292,237) | | | | | | (43,500,000) | | |
Forgiveness of employee loan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 537,329 | | | | | | — | | | | | | 428,221 | | | | | | 965,550 | | |
Activity subsequent to the Business
Combination: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,155,398 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,155,398 | | |
Shares withheld to pay withholding taxes
|
| | | | (29,874) | | | | | | (3) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (283,805) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (283,808) | | |
Exchange of Class B Common Stock to Class A Common Stock
|
| | | | 550,000 | | | | | | 55 | | | | | | (550,000) | | | | | | (55) | | | | | | — | | | | | | — | | | | | | (820,121) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 820,121 | | | | | | — | | |
Net income (loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,319,150 | | | | | | — | | | | | | 578,945 | | | | | | 1,898,095 | | |
Equity activity resulting from Tax
Receivable Agreement |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,200,580 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,200,580 | | |
Change in fair value of interest rate
swaps, net of reclassification adjustment |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,431,029 | | | | | | 1,105,807 | | | | | | 2,536,836 | | |
Balance, December 31, 2019
|
| | | | 40,816,292 | | | | | $ | 4,082 | | | | | | 31,563,799 | | | | | $ | 3,156 | | | | | | — | | | | | $ | — | | | | | $ | 11,252,052 | | | | | $ | — | | | | | $ | — | | | | | $ | (27,209,514) | | | | | $ | 1,431,029 | | | | | $ | (14,729,012) | | | | | $ | (29,248,207) | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (12,885,112) | | | | | $ | 24,337,113 | | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 62,566,500 | | | | | | 47,876,835 | | |
Equity-based compensation
|
| | | | 11,070,075 | | | | | | 883,373 | | |
Deferred income tax
|
| | | | 895,298 | | | | | | (2,875,895) | | |
Change in fair value of interest rate swaps, net of reclassification adjustment
|
| | | | 11,425,921 | | | | | | (546,832) | | |
Gain on change in fair value of contingent consideration
|
| | | | (150,000) | | | | | | — | | |
Provision for doubtful accounts
|
| | | | — | | | | | | 15,775,638 | | |
Amortization of deferred financing costs
|
| | | | 1,311,573 | | | | | | 477,781 | | |
Write-off of deferred financing costs
|
| | | | 2,121,451 | | | | | | 1,219,205 | | |
Forgiveness of employee loan
|
| | | | 965,550 | | | | | | — | | |
Gain on debt extinguishment
|
| | | | — | | | | | | (800,000) | | |
Changes in operating assets and liabilities, net of effects from acquisitions:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (20,197,521) | | | | | | (22,042,721) | | |
Due from affiliates and related parties
|
| | | | — | | | | | | 700,791 | | |
Inventory
|
| | | | (1,305,350) | | | | | | 2,309,508 | | |
Prepaid and other assets
|
| | | | (9,558,118) | | | | | | (1,579,969) | | |
Accounts payable and accrued expenses
|
| | | | 14,157,579 | | | | | | 2,691,981 | | |
Net cash provided by operating activities
|
| | | | 60,417,846 | | | | | | 68,426,808 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of equipment and other fixed assets
|
| | | | (21,331,581) | | | | | | (9,949,930) | | |
Payments for business acquisitions, net of cash acquired
|
| | | | (63,538,392) | | | | | | (86,334,011) | | |
Net cash used in investing activities
|
| | | | (84,869,973) | | | | | | (96,283,941) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from borrowings on long-term debt
|
| | | | 305,000,000 | | | | | | 140,000,000 | | |
Payments on long-term debt
|
| | | | (194,071,757) | | | | | | (24,830,307) | | |
Proceeds from issuance of promissory note payable
|
| | | | 100,000,000 | | | | | | — | | |
Increase in cash from the Business Combination
|
| | | | 43,911,748 | | | | | | — | | |
Proceed from sale of Class A Common Stock
|
| | | | 125,000,000 | | | | | | — | | |
Proceeds from issuance of members’ interests
|
| | | | 20,000,000 | | | | | | — | | |
Payments for equity issuance costs
|
| | | | (837,156) | | | | | | — | | |
Payments for redemptions of Class B Common Stock
|
| | | | (20,000,000) | | | | | | — | | |
Payments of deferred financing costs
|
| | | | (9,027,753) | | | | | | (2,715,849) | | |
Payments on capital leases
|
| | | | (37,271,512) | | | | | | (27,936,993) | | |
Borrowings on lines of credit
|
| | | | 55,500,000 | | | | | | 24,750,000 | | |
Payments on lines of credit
|
| | | | (43,500,000) | | | | | | (59,218,647) | | |
Distributions to members
|
| | | | (250,000,000) | | | | | | — | | |
Payments for redemption of members’ interests
|
| | | | (3,713,455) | | | | | | — | | |
Payments of contingent consideration
|
| | | | (13,000,000) | | | | | | — | | |
Payments for debt prepayment penalties
|
| | | | — | | | | | | (979,724) | | |
Payments for tax withholdings from equity-based compensation activity, net
|
| | | | (507,152) | | | | | | — | | |
Distributions to noncontrolling interests
|
| | | | (1,338,383) | | | | | | (300,000) | | |
Net cash provided by financing activities
|
| | | | 76,144,580 | | | | | | 48,768,480 | | |
Net increase in cash and cash equivalents
|
| | | | 51,692,453 | | | | | | 20,911,347 | | |
Cash and cash equivalents at beginning of year
|
| | | | 25,185,681 | | | | | | 4,274,334 | | |
Cash and cash equivalents at end of year
|
| | | $ | 76,878,134 | | | | | $ | 25,185,681 | | |
Supplemental disclosures: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 23,074,703 | | | | | $ | 7,327,942 | | |
Cash paid for income taxes
|
| | | | 1,318,330 | | | | | | 405,205 | | |
Noncash investing and financing activities: | | | | | | | | | | | | | |
Equipment acquired under capital lease obligations
|
| | | | 36,267,634 | | | | | | 27,079,171 | | |
Unpaid equipment and other fixed asset purchases at end of year
|
| | | | 8,514,047 | | | | | | 12,557,763 | | |
Seller note issued in connection with an acquisition
|
| | | | 2,000,000 | | | | | | — | | |
Contingent purchase price in connection with acquisitions
|
| | | | 12,625,000 | | | | | | 15,250,000 | | |
Deferred purchase price in connection with acquisitions
|
| | | | 1,572,500 | | | | | | 500,000 | | |
Conversion of equity to debt
|
| | | | 43,500,000 | | | | | | 16,845,937 | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| ||||||
Total shares outstanding prior to the Business Combination
|
| | | | 31,250,000 | | | | | | — | | |
Less: redemption of public shares
|
| | | | (20,840,035) | | | | | | — | | |
Add: shares issued in private placement
|
| | | | 12,500,000 | | | | | | — | | |
Add: shares issued in connection with the Business Combination
|
| | | | 17,386,201 | | | | | | 32,113,799 | | |
Total shares outstanding at the closing date of the Business Combination
|
| | | | 40,296,166 | | | | | | 32,113,799 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Government
|
| | | $ | 168,686,247 | | | | | $ | 128,278,922 | | |
Insurance
|
| | | | 300,360,975 | | | | | | 178,726,197 | | |
Patient pay
|
| | | | 60,597,025 | | | | | | 38,273,218 | | |
Net revenue
|
| | | $ | 529,644,247 | | | | | $ | 345,278,337 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Net sales revenue – Point in time | | | | | | | | | | | | | |
Sleep
|
| | | $ | 224,542,433 | | | | | $ | 123,585,029 | | |
Respiratory
|
| | | | 5,779,842 | | | | | | 4,910,755 | | |
HME
|
| | | | 45,948,275 | | | | | | 36,724,311 | | |
Other
|
| | | | 40,180,387 | | | | | | 24,651,320 | | |
Total Net sales revenue
|
| | | $ | 316,450,937 | | | | | $ | 189,871,415 | | |
Net revenue from fixed monthly equipment reimbursements | | | | | | | | | | | | | |
Sleep
|
| | | $ | 80,846,378 | | | | | $ | 52,703,572 | | |
Respiratory
|
| | | | 81,417,997 | | | | | | 66,341,108 | | |
HME
|
| | | | 43,212,228 | | | | | | 35,941,985 | | |
Other
|
| | | | 7,716,707 | | | | | | 420,257 | | |
Total Net revenue from fixed monthly equipment reimbursements
|
| | | $ | 213,193,310 | | | | | $ | 155,406,922 | | |
Total net revenue | | | | | | | | | | | | | |
Sleep
|
| | | $ | 305,388,811 | | | | | $ | 176,288,601 | | |
Respiratory
|
| | | | 87,197,839 | | | | | | 71,251,863 | | |
HME
|
| | | | 89,160,503 | | | | | | 72,666,296 | | |
Other
|
| | | | 47,897,094 | | | | | | 25,071,577 | | |
Total net revenue
|
| | | $ | 529,644,247 | | | | | $ | 345,278,337 | | |
|
Level input
|
| |
Input definition
|
|
Level 1 | | | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | |
Level 2 | | | Inputs, other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | |
Level 3 | | | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Cash
|
| | | $ | 22,863,543 | | | | | $ | 9,058,782 | | |
Money market accounts
|
| | | | 54,014,591 | | | | | | 16,126,899 | | |
Total
|
| | | $ | 76,878,134 | | | | | $ | 25,185,681 | | |
|
Patient medical equipment
|
| |
13 months – 5 years
|
|
|
Vehicles
|
| |
5 years
|
|
|
Other
|
| |
2 – 7 years
|
|
| | |
Year ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Cost of products, supplies and patient equipment depreciation
|
| | | $ | 215,927,438 | | | | | $ | 140,034,522 | | |
Salaries, labor and benefits
|
| | | | 154,030,773 | | | | | | 107,484,610 | | |
Occupancy
|
| | | | 13,407,384 | | | | | | 8,869,386 | | |
Other operating costs
|
| | | | 57,020,792 | | | | | | 36,996,117 | | |
Total
|
| | | $ | 440,386,387 | | | | | $ | 293,384,635 | | |
| | |
Goulds
|
| |
SleepMed
|
| |
Choice
|
| |
Other
|
| |
Total
|
| |||||||||||||||
Cash
|
| | | $ | — | | | | | | — | | | | | | — | | | | | | 91,894 | | | | | | 91,894 | | |
Accounts receivable
|
| | | | 3,968,011 | | | | | | — | | | | | | 758,558 | | | | | | 678,491 | | | | | | 5,405,060 | | |
Inventory
|
| | | | 2,452,777 | | | | | | 266,759 | | | | | | 33,880 | | | | | | 1,507,625 | | | | | | 4,261,041 | | |
Prepaid and other current assets
|
| | | | 11,835 | | | | | | — | | | | | | 110,212 | | | | | | — | | | | | | 122,047 | | |
Equipment and other fixed assets
|
| | | | 3,352,330 | | | | | | 1,401,491 | | | | | | 107,120 | | | | | | 6,107,790 | | | | | | 10,968,731 | | |
Goodwill
|
| | | | 17,947,636 | | | | | | 14,064,750 | | | | | | 18,908,961 | | | | | | 14,348,123 | | | | | | 65,269,470 | | |
Contract liabilities
|
| | | | (509,000) | | | | | | (328,000) | | | | | | (22,000) | | | | | | (849,995) | | | | | | (1,708,995) | | |
Accounts payable and accrued expenses
|
| | | | (2,959,245) | | | | | | — | | | | | | (1,212,899) | | | | | | (744,349) | | | | | | (4,916,493) | | |
Net assets acquired
|
| | | $ | 24,264,344 | | | | | | 15,405,000 | | | | | | 18,683,832 | | | | | | 21,139,579 | | | | | | 79,492,755 | | |
| | |
PPS
|
| |
Verus
|
| |
HME
|
| |
Other
|
| |
Total
|
| |||||||||||||||
Cash
|
| | | $ | 407,456 | | | | | | 1,449,817 | | | | | | 100,000 | | | | | | 57,000 | | | | | | 2,014,273 | | |
Accounts receivable
|
| | | | 12,126,481 | | | | | | 7,795,765 | | | | | | 2,200,774 | | | | | | 445,000 | | | | | | 22,568,020 | | |
Inventory
|
| | | | 1,344,535 | | | | | | 2,923,211 | | | | | | 75,493 | | | | | | 674,678 | | | | | | 5,017,917 | | |
Prepaid and other current assets
|
| | | | 995,048 | | | | | | 466,114 | | | | | | 35,960 | | | | | | — | | | | | | 1,497,122 | | |
Equipment and other fixed assets
|
| | | | 20,357,062 | | | | | | 5,895,113 | | | | | | 2,165,448 | | | | | | 3,229,983 | | | | | | 31,647,606 | | |
Deferred tax asset
|
| | | | — | | | | | | 6,525,269 | | | | | | — | | | | | | — | | | | | | 6,525,269 | | |
Other assets
|
| | | | 1,927,355 | | | | | | 838,008 | | | | | | 37,956 | | | | | | — | | | | | | 2,803,319 | | |
Goodwill
|
| | | | 49,660,338 | | | | | | 91,829,157 | | | | | | 13,230,987 | | | | | | 10,037,339 | | | | | | 164,757,821 | | |
Accounts payable and accrued expenses
|
| | | | (20,484,673) | | | | | | (11,963,664) | | | | | | (3,180,531) | | | | | | (995,000) | | | | | | (36,623,868) | | |
Contract liabilities
|
| | | | (1,677,813) | | | | | | (306,194) | | | | | | (341,667) | | | | | | — | | | | | | (2,325,674) | | |
Capital lease obligations
|
| | | | (6,395,438) | | | | | | (3,793,103) | | | | | | (1,074,420) | | | | | | — | | | | | | (11,262,961) | | |
Deferred tax liability
|
| | | | (321,974) | | | | | | — | | | | | | — | | | | | | — | | | | | | (321,974) | | |
Other long-term liabilities
|
| | | | (738,099) | | | | | | (1,260,225) | | | | | | — | | | | | | — | | | | | | (1,998,324) | | |
Net assets acquired
|
| | | $ | 57,200,278 | | | | | | 100,399,268 | | | | | | 13,250,000 | | | | | | 13,449,000 | | | | | | 184,298,546 | | |
| | |
Year ended December 31,
|
| |||||||||
Pro-forma financial information:
|
| |
2019
|
| |
2018
|
| ||||||
Net revenue
|
| | | $ | 551,754,097 | | | | | $ | 477,649,368 | | |
Operating income
|
| | | | 31,304,194 | | | | | | 25,352,321 | | |
| | |
Year ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Net revenue
|
| | | $ | 53,295,178 | | | | | $ | 107,047,267 | | |
Operating income (loss)
|
| | | | 7,406,919 | | | | | | (6,597,299) | | |
| | |
2019
|
| |
2018
|
| ||||||
Patient medical equipment
|
| | | $ | 112,070,831 | | | | | $ | 123,881,314 | | |
Vehicles
|
| | | | 4,461,041 | | | | | | 3,903,819 | | |
Other
|
| | | | 15,474,589 | | | | | | 12,704,131 | | |
| | | | | 132,006,461 | | | | | | 140,489,264 | | |
Less accumulated depreciation
|
| | | | (68,447,381) | | | | | | (78,887,914) | | |
| | | | $ | 63,559,080 | | | | | $ | 61,601,350 | | |
| | |
Gross
carrying amount |
| |
Accumulated
impairment losses |
| |
Net
carrying amount |
| |||||||||
Balance at December 31, 2017
|
| | | $ | 38,628,391 | | | | | | — | | | | | | 38,628,391 | | |
Acquired goodwill during the period
|
| | | | 164,757,821 | | | | | | — | | | | | | 164,757,821 | | |
Decrease
|
| | | | (950,000) | | | | | | — | | | | | | (950,000) | | |
Balance at December 31, 2018
|
| | | $ | 202,436,212 | | | | | | — | | | | | | 202,436,212 | | |
Acquired goodwill during the period
|
| | | | 65,269,470 | | | | | | — | | | | | | 65,269,470 | | |
Receipt of prior escrow payment
|
| | | | (504,000) | | | | | | | | | | | | (504,000) | | |
Decrease
|
| | | | (411,164) | | | | | | — | | | | | | (411,164) | | |
Balance at December 31, 2019
|
| | | $ | 266,790,518 | | | | | | — | | | | | | 266,790,518 | | |
|
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Fair Value
|
| ||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 54,014,591 | | | | | $ | — | | | | | $ | — | | | | | $ | 54,014,591 | | |
Total assets measured at fair value
|
| | | $ | 54,014,591 | | | | | $ | — | | | | | $ | — | | | | | $ | 54,014,591 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition-related contingent consideration obligations-short term
|
| | | $ | — | | | | | $ | — | | | | | $ | 4,825,000 | | | | | $ | 4,825,000 | | |
Acquisition-related contingent consideration obligations-long term
|
| | | | — | | | | | | — | | | | | | 9,900,000 | | | | | | 9,900,000 | | |
Interest rate swap agreements
|
| | | | — | | | | | | 8,339,288 | | | | | | — | | | | | | 8,339,288 | | |
Total liabilities measured at fair value
|
| | | $ | — | | | | | $ | 8,339,288 | | | | | $ | 14,725,000 | | | | | $ | 23,064,288 | | |
|
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Fair Value
|
| ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 16,126,899 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,126,899 | | |
Interest rate swap agreement
|
| | | | — | | | | | | 943,134 | | | | | | — | | | | | | 943,134 | | |
Total assets measured at fair value
|
| | | $ | 16,126,899 | | | | | $ | 943,134 | | | | | $ | — | | | | | $ | 17,070,033 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition-related contingent consideration obligations-short term
|
| | | $ | — | | | | | $ | — | | | | | $ | 13,625,000 | | | | | $ | 13,625,000 | | |
Acquisition-related contingent consideration obligations-long term
|
| | | | — | | | | | | — | | | | | | 1,625,000 | | | | | | 1,625,000 | | |
Interest rate swap agreements
|
| | | | — | | | | | | 396,302 | | | | | | — | | | | | | 396,302 | | |
Total liabilities measured at fair value
|
| | | $ | — | | | | | $ | 396,302 | | | | | $ | 15,250,000 | | | | | $ | 15,646,302 | | |
| | |
Beginning
Balance |
| |
Additions
|
| |
Payments
|
| |
Gain
|
| |
Ending
Balance |
| |||||||||||||||
Year Ended December 31, 2019
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | $ | 15,250,000 | | | | | $ | 12,625,000 | | | | | $ | (13,000,000)$ | | | | | ( | 150,000)$ | | | | | | 14,725,000 | | |
Total Level 3 liabilities
|
| | | $ | 15,250,000 | | | | | $ | 12,625,000 | | | | | $ | (13,000,000)$ | | | | | ( | 150,000)$ | | | | | | 14,725,000 | | |
Year Ended December 31, 2018
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | $ | — | | | | | $ | 15,250,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,250,000 | | |
Total Level 3 liabilities
|
| | | $ | — | | | | | $ | 15,250,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 15,250,000 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Significant unobservable inputs (Level 3): | | | | | | | | | | | | | |
Goodwill (annual impairment assessment)
|
| | | $ | 266,790,518 | | | | | $ | 202,436,212 | | |
| | |
As of December 31, 2019
|
| ||||||
| | |
Balance
Sheet Location |
| |
Fair Value
Asset (Liability) |
| |||
Derivatives designated as hedging instruments: | | | | | | | | | | |
Interest rate swap agreements
|
| | Other current liabilities | | | | $ | (2,157,324) | | |
Interest rate swap agreements
|
| |
Other long-term liabilities
|
| | | | (6,181,964) | | |
Total derivatives designated as hedging instruments
|
| | | | | | $ | (8,339,288) | | |
|
| | |
As of December 31, 2018
|
| ||||||
| | |
Balance
Sheet Location |
| |
Fair Value
Asset (Liability) |
| |||
Derivatives not designated as hedging instruments: | | | | | | | | | | |
Interest rate swap agreements
|
| |
Prepaid and other current assets
|
| | | $ | 943,134 | | |
Interest rate swap agreements
|
| | Other current liabilities | | | | | (396,302) | | |
Total derivatives not designated as hedging
instruments |
| | | | | | $ | 546,832 | | |
| | |
Year Ended December 31, 2019
|
| ||||||||||||
| | |
Amount of Gain
or (Loss) Recognized in OCI on Derivative |
| |
Location of Gain
or (Loss) Reclassified from Accumulated OCI into Income |
| |
Amount of Gain
or (Loss) Reclassified from Accumulated OCI into Income |
| ||||||
Derivatives in cash flow hedging relationships: | | | | | | | | | | | | | | | | |
Interest rate swap agreements
|
| | | $ | 3,469,643 | | | |
Interest expense
|
| | | $ | 932,807 | | |
Total
|
| | | $ | 3,469,643 | | | | | | | | $ | 932,807 | | |
| | |
Year Ended December 31, 2019
|
| ||||||
| | |
Location of Gain or (Loss)
Recognized in Loss on Derivative |
| |
Amount of Gain or (Loss)
Recognized in Loss on Derivative |
| |||
Derivatives Not Designated as Hedging Instruments: | | | | | | | | | | |
Interest rate swap agreements
|
| |
Interest Expense
|
| | | $ | (12,358,728) | | |
Total
|
| | | | | | $ | (12,358,728) | | |
|
| | |
Year Ended December 31, 2018
|
| ||||||
| | |
Location of Gain or (Loss)
Recognized in Income on Derivative |
| |
Amount of Gain or (Loss)
Recognized in Income on Derivative |
| |||
Derivatives Not Designated as Hedging Instruments: | | | | | | | | | | |
Interest rate swap agreements
|
| |
Interest Expense
|
| | | $ | 546,832 | | |
Total
|
| | | | | | $ | 546,832 | | |
| | |
2019
|
| |
2018
|
| ||||||
Balance at January 1
|
| | | $ | 2,258,253 | | | | | $ | 1,342,379 | | |
Capitalized fees
|
| | | | 9,027,753 | | | | | | 2,612,860 | | |
Amortization
|
| | | | (1,311,573) | | | | | | (477,781) | | |
Write-off due to debt refinancing
|
| | | | (2,121,451) | | | | | | (1,219,205) | | |
Balance at December 31
|
| | | $ | 7,852,982 | | | | | $ | 2,258,253 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Accounts payable
|
| | | $ | 79,237,323 | | | | | $ | 70,603,562 | | |
Employee related accruals
|
| | | | 12,319,746 | | | | | | 9,142,347 | | |
Self insurance reserves
|
| | | | 1,166,014 | | | | | | 1,304,335 | | |
Accrued interest
|
| | | | 4,021,660 | | | | | | 404,015 | | |
Other
|
| | | | 5,983,350 | | | | | | 4,104,160 | | |
Total
|
| | | $ | 102,728,093 | | | | | $ | 85,558,419 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Secured term loans
|
| | | $ | 246,250,000 | | | | | $ | 134,875,000 | | |
Revolving credit facility
|
| | | | 12,000,000 | | | | | | — | | |
Note payable
|
| | | | 143,500,000 | | | | | | — | | |
Seller note (see Note 3)
|
| | | | 1,666,667 | | | | | | — | | |
Other
|
| | | | 58,518 | | | | | | 171,942 | | |
Unamortized deferred financing fees
|
| | | | (6,642,490) | | | | | | (862,243) | | |
| | | | | 396,832,695 | | | | | | 134,184,699 | | |
Current portion
|
| | | | (1,721,132) | | | | | | (7,089,976) | | |
Long-term portion
|
| | | $ | 395,111,563 | | | | | $ | 127,094,723 | | |
Twelve months ended December 31,
|
| | | | | | |
2020
|
| | | $ | 1,721,132 | | |
2021
|
| | | | 4,053 | | |
2022
|
| | | | — | | |
2023
|
| | | | 2,500,000 | | |
2024
|
| | | | 255,750,000 | | |
Thereafter
|
| | | | 143,500,000 | | |
Total debt maturity
|
| | | $ | 403,475,185 | | |
|
Cash and cash equivalents
|
| | | $ | 43,911,748 | | |
|
Current assets
|
| | | | 70,763 | | |
|
Current liabilities
|
| | | | (11,214,503) | | |
|
Net assets of DFB
|
| | | $ | 32,768,008 | | |
Sources
|
| | | | | | |
DFB’s cash and cash equivalents on hand
|
| | | $ | 43,911,748 | | |
Private placement(1)
|
| | | | 125,000,000 | | |
Total Sources
|
| | | $ | 168,911,748 | | |
|
Uses
|
| | | | | | |
Cash to balance sheet(2)
|
| | | $ | 52,845,206 | | |
Legacy AdaptHealth Holdings LLC redemptions(3)
|
| | | | 20,000,000 | | |
Debt repayment(4)
|
| | | | 81,500,000 | | |
Transaction expenses(5)
|
| | | | 14,566,542 | | |
Total Uses
|
| | | $ | 168,911,748 | | |
| | |
2019
Incentive Units |
| |
2018
Incentive Units |
|
Expected volatility(1)
|
| |
40.0%
|
| |
35.0%
|
|
Risk-free interest rate(2)
|
| |
2.0%
|
| |
2.3%
|
|
Expected term(3)
|
| |
1.5 years
|
| |
1.5 years
|
|
Discount for lack of marketability(4)
|
| |
25.0%
|
| |
30.0%
|
|
| | |
2019
|
|
Expected volatility
|
| |
35.9%
|
|
Risk-free interest rate
|
| |
1.7%
|
|
Expected term
|
| |
6.0 years
|
|
Dividend yield
|
| |
N/A
|
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Basic net (loss) income per common share | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Basic net (loss) income attributable to AdaptHealth Corp.
|
| | | $ | (14,995,895) | | | | | $ | 23,260,347 | | |
Denominator: | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding
|
| | | | 22,557,213 | | | | | | 11,899,898 | | |
Basic and diluted net (loss) income per share attributable to Class A
shareholders |
| | | $ | (0.66) | | | | | $ | 1.95 | | |
|
2020
|
| | | $ | 19,813,539 | | |
|
2021
|
| | | | 255,652 | | |
|
Total
|
| | | | 20,069,191 | | |
|
Less amount representing interest
|
| | | | (86,198) | | |
| | | | | | 19,982,993 | | |
|
Current portion
|
| | | | (19,749,854) | | |
|
Long-term portion
|
| | | $ | 233,139 | | |
|
2020
|
| | | $ | 12,291,753 | | |
|
2021
|
| | | | 7,811,982 | | |
|
2022
|
| | | | 5,632,124 | | |
|
2023
|
| | | | 4,492,642 | | |
|
2024
|
| | | | 3,082,588 | | |
|
Thereafter
|
| | | | 4,036,732 | | |
| | | | | $ | 37,347,821 | | |
| | |
2019
|
| |
2018
|
| ||||||
Current: | | | | | | | | | | | | | |
Federal
|
| | | $ | (961,588) | | | | | $ | — | | |
State
|
| | | | 1,222,292 | | | | | | 778,190 | | |
| | | | | 260,704 | | | | | | 778,190 | | |
Deferred: | | | | | | | | | | | | | |
Federal
|
| | | | 673,664 | | | | | | (1,549,549) | | |
State
|
| | | | 221,634 | | | | | | (1,326,346) | | |
| | | | | 895,298 | | | | | | (2,875,895) | | |
Total income tax (benefit) expense
|
| | | $ | 1,156,002 | | | | | $ | (2,097,705) | | |
| | |
2019
|
| |
2018
|
| ||||||
Federal tax at statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
Non-taxable income
|
| | | | (46.6)% | | | | | | 0.8% | | |
State income taxes, net of federal benefit
|
| | | | (9.6)% | | | | | | (3.2)% | | |
Change in valuation allowance
|
| | | | 5.3% | | | | | | (32.3)% | | |
Net operating loss write-offs
|
| | | | — | | | | | | 3.6% | | |
Deferred adjustments
|
| | | | 18.1 | | | | | | —% | | |
Other
|
| | | | 1.9% | | | | | | 0.7% | | |
Effective income tax rate (benefit)
|
| | | | (9.9)% | | | | | | (9.4)% | | |
|
| | |
2019
|
| |
2018
|
| ||||||
Deferred income tax assets: | | | | | | | | | | | | | |
Accounts receivable
|
| | | $ | 3,188,976 | | | | | $ | 1,575,902 | | |
Goodwill
|
| | | | 4,805,554 | | | | | | 5,401,652 | | |
Investment in partnership
|
| | | | 41,745,232 | | | | | | — | | |
Inventory
|
| | | | 60,677 | | | | | | 54,239 | | |
Accruals
|
| | | | 249,595 | | | | | | 615,327 | | |
Net operating losses and credits
|
| | | | 3,494,969 | | | | | | 4,986,913 | | |
Charitable contribution
|
| | | | 16,942 | | | | | | 16,420 | | |
Start-up / organizational costs
|
| | | | 509,221 | | | | | | — | | |
AMT credit
|
| | | | 208,056 | | | | | | 208,056 | | |
Total deferred income tax assets
|
| | | | 54,279,222 | | | | | | 12,858,509 | | |
Valuation allowance
|
| | | | (22,502,544) | | | | | | — | | |
Net deferred income tax assets
|
| | | $ | 31,776,678 | | | | | $ | 12,858,509 | | |
Deferred income tax liabilities: | | | | | | | | | | | | | |
Equipment and other fixed assets
|
| | | | (4,271,299) | | | | | | (3,779,319) | | |
Total deferred income tax liabilities
|
| | | | (4,271,299) | | | | | | (3,779,319) | | |
Noncurrent net deferred income tax assets
|
| | | $ | 27,505,379 | | | | | $ | 9,079,190 | | |
| | |
Years Ended
|
| |||||||||
| | |
March 31,
2019 |
| |
March 31,
2018 |
| ||||||
Revenues
|
| | | $ | 134,774 | | | | | $ | 144,461 | | |
Cost of sales
|
| | | | (84,995) | | | | | | (91,040) | | |
Gross profit
|
| | | | 49,779 | | | | | | 53,421 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, distribution and administrative expenses
|
| | | | (86,269) | | | | | | (106,196) | | |
Restructuring charges
|
| | | | (7,601) | | | | | | (2,887) | | |
Total operating expenses
|
| | | | (93,870) | | | | | | (109,083) | | |
Operating loss
|
| | | | (44,091) | | | | | | (55,662) | | |
Other expense, net
|
| | | | 62 | | | | | | (11) | | |
Loss from operations before income taxes
|
| | | | (44,029) | | | | | | (55,673) | | |
Income tax expense
|
| | | | — | | | | | | — | | |
Net loss attributable to Patient Care Solutions Business
|
| | | | (44,029) | | | | | | (55,673) | | |
Comprehensive loss
|
| | | | (44,029) | | | | | | (55,673) | | |
Comprehensive loss attributable to Patient Care Solutions
|
| | | $ | (44,029) | | | | | $ | (55,673) | | |
| | |
As of
March 31, 2019 |
| |
As of
March 31, 2018 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 18,908 | | | | | $ | 17,659 | | |
Receivables, net
|
| | | | 16,997 | | | | | | 17,140 | | |
Contract assets
|
| | | | 7,548 | | | | | | — | | |
Prepaid expenses and other
|
| | | | 915 | | | | | | 719 | | |
Total current assets
|
| | | | 44,368 | | | | | | 35,518 | | |
Property, plant and equipment, net
|
| | | | 9,263 | | | | | | 1,127 | | |
Other noncurrent assets
|
| | | | 15 | | | | | | 16 | | |
Total assets
|
| | | $ | 53,646 | | | | | $ | 36,661 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Drafts and accounts payable
|
| | | $ | 4,103 | | | | | $ | 6,607 | | |
Other accrued liabilities
|
| | | | 5,880 | | | | | | 21,293 | | |
Total current liabilities
|
| | | | 9,983 | | | | | | 27,900 | | |
Other noncurrent liabilities
|
| | | | 89 | | | | | | 72 | | |
Net parent investment
|
| | | | 43,574 | | | | | | 8,689 | | |
Total liabilities and equity
|
| | | $ | 53,646 | | | | | $ | 36,661 | | |
| | |
Net Parent
Investment |
| |||
Balance as of March 31, 2017
|
| | | $ | 18,628 | | |
Net loss
|
| | | | (55,673) | | |
Net transfers from parent
|
| | | | 45,734 | | |
Balance as of March 31, 2018
|
| | | | 8,689 | | |
Net loss
|
| | | | (44,029) | | |
Cumulative effect on opening net parent investment of adopting accounting standards and other
|
| | | | 7,964 | | |
Net transfers from parent
|
| | | | 70,950 | | |
Balance as of March 31, 2019
|
| | | $ | 43,574 | | |
| | |
Years Ended
|
| |||||||||
| | |
March 31,
2019 |
| |
March 31,
2018 |
| ||||||
Net loss
|
| | | $ | (44,029) | | | | | $ | (55,673) | | |
Adjustments to reconcile to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation
|
| | | | 314 | | | | | | 485 | | |
Provision for bad debts
|
| | | | (1,547) | | | | | | (11,007) | | |
Other non-cash items
|
| | | | 437 | | | | | | | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Receivables, net
|
| | | | 1,690 | | | | | | 14,351 | | |
Contract assets
|
| | | | 416 | | | | | | — | | |
Prepaid expenses and other
|
| | | | (65) | | | | | | 225 | | |
Drafts and accounts payable
|
| | | | (2,504) | | | | | | (6,945) | | |
Other accrued liabilities
|
| | | | (15,413) | | | | | | 14,349 | | |
Net cash used in operating activities
|
| | | | (60,701) | | | | | | (44,215) | | |
Investing Activities | | | | | | | | | | | | | |
Payments for property, plant and equipment
|
| | | | (9,000) | | | | | | (130) | | |
Net cash used in investing activities
|
| | | | (9,000) | | | | | | (130) | | |
Financing Activities | | | | | | | | | | | | | |
Net transfers from parent
|
| | | | 70,950 | | | | | | 45,734 | | |
Net cash provided by financing activities
|
| | | | 70,950 | | | | | | 45,734 | | |
Net increase in cash and cash equivalents
|
| | | | 1,249 | | | | | | 1,389 | | |
Cash and cash equivalents at beginning of year
|
| | | | 17,659 | | | | | | 16,270 | | |
Cash and cash equivalents at end of year
|
| | | $ | 18,908 | | | | | $ | 17,659 | | |
(In thousands)
|
| | | | | | |
Balance as of March 31, 2018
|
| | | $ | — | | |
Cumulative effect adjustment at April 1, 2018
|
| | | | 7,964 | | |
Revenue recognized
|
| | | | 134,774 | | |
Amounts collected or invoiced
|
| | | | (135,190) | | |
Balance as of March 31, 2019
|
| | | $ | 7,548 | | |
| | |
Year Ended March 31, 2019
|
| |||||||||||||||
(In thousands)
|
| |
As Reported
|
| |
Effect of
Change |
| |
Amount Without
Adoption of ASC 606 |
| |||||||||
Revenues
|
| | | $ | 134,774 | | | | | $ | 416 | | | | | $ | 135,190 | | |
Gross profit
|
| | | | 49,779 | | | | | | 416 | | | | | | 50,195 | | |
Operating loss
|
| | | | (44,091) | | | | | | 416 | | | | | | (43,675) | | |
Net loss
|
| | | | (44,029) | | | | | | 416 | | | | | | (43,613) | | |
Current assets | | | | | | | | | | | | | | | | | | | |
Contract assets
|
| | | | 7,548 | | | | | | (7,548) | | | | | | — | | |
Net parent investment | | | | | | | | | | | | | | | | | | | |
Net parent investment
|
| | | | (43,574) | | | | | | (7,548) | | | | | | (51,122) | | |
| | |
Years Ended
|
| |||||||||
(In thousands)
|
| |
March 31,
2019 |
| |
March 31,
2018 |
| ||||||
Cost of sales
|
| | | $ | (2,357) | | | | | $ | (1,969) | | |
Selling, distribution and administrative
|
| | | | 15,825 | | | | | | 17,176 | | |
Total corporate allocations
|
| | | $ | 13,468 | | | | | $ | 15,207 | | |
| | |
Years Ended
|
| |||||||||
(In thousands)
|
| |
March 31,
2019 |
| |
March 31,
2018 |
| ||||||
Severance and employee-related costs, net
|
| | | $ | 1,790 | | | | | $ | 1,637 | | |
Exit and other-related costs
|
| | | | 5,334 | | | | | | 1,250 | | |
Asset impairments and accelerated depreciation
|
| | | | 477 | | | | | | — | | |
Total
|
| | | $ | 7,601 | | | | | $ | 2,887 | | |
|
(In thousands)
|
| | | | | | |
Balance as of March 31, 2017
|
| | | $ | 475 | | |
Restructuring charges recognized
|
| | | | 2,887 | | |
Non-cash charges
|
| | | | — | | |
Cash payments
|
| | | | (100) | | |
Temporary charges
|
| | | | (800) | | |
Balance as of March 31, 2018
|
| | | | 2,462 | | |
Restructuring charges recognized
|
| | | | 7,601 | | |
Non-cash charges
|
| | | | (477) | | |
Cash payments
|
| | | | (1,823) | | |
Temporary charges
|
| | | | (5,281) | | |
Balance as of March 31, 2019
|
| | | $ | 2,482 | | |
| | |
Years Ended
March 31, |
| |||||||||
(In thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Total income from continuing operations before income taxes (United States)
|
| | | $ | (44,029) | | | | | $ | (55,673) | | |
|
| | |
Years Ended
March 31, |
| |||||||||
(In thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Current | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Total current
|
| | | | — | | | | | | — | | |
Deferred | | | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | |
State
|
| | | | — | | | | | | — | | |
Total deferred
|
| | | | — | | | | | | — | | |
Income tax expense (benefit)
|
| | | $ | — | | | | | $ | — | | |
| | |
Years Ended
March 31, |
| |||||||||
(In thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Income tax expense at federal statutory rate
|
| | | $ | (9,246) | | | | | $ | (17,537) | | |
State income taxes net of federal tax benefit
|
| | | | (1,179) | | | | | | (1,931) | | |
Other
|
| | | | 45 | | | | | | 40 | | |
Change in tax rate
|
| | | | | | | | | | 28,490 | | |
Valuation allowance
|
| | | | 10,380 | | | | | | (9,062) | | |
Income tax expense (benefit)
|
| | | $ | — | | | | | $ | — | | |
| | |
Years Ended March 31,
|
| |||||||||
(In thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Receivable allowances
|
| | | $ | 179 | | | | | $ | 6,706 | | |
Compensation and benefit related accruals
|
| | | | 974 | | | | | | 722 | | |
Accrued Litigation
|
| | | | — | | | | | | 3,866 | | |
Federal and state net operating loss
|
| | | | 62,996 | | | | | | 40,614 | | |
Intangibles
|
| | | | 4,929 | | | | | | 6,549 | | |
Other
|
| | | | 246 | | | | | | 487 | | |
Subtotal
|
| | | | 69,324 | | | | | | 58,944 | | |
Less: valuation allowance
|
| | | | (69,324) | | | | | | (58,944) | | |
Net deferred tax
|
| | | $ | — | | | | | $ | — | | |
(In thousands)
|
| |
March 31,
2019 |
| |
March 31,
2018 |
| ||||||
Trade receivables
|
| | | $ | 21,481 | | | | | $ | 24,589 | | |
Other receivables(1)
|
| | | | 1,439 | | | | | | 2,383 | | |
Total
|
| | | | 22,920 | | | | | | 26,972 | | |
Allowances
|
| | | | (5,923) | | | | | | (9,832) | | |
Net
|
| | | $ | 16,997 | | | | | $ | 17,140 | | |
(In thousands)
|
| |
March 31,
2019 |
| |
March 31,
2018 |
| ||||||
Machinery and equipment
|
| | | $ | 1,684 | | | | | $ | 3,665 | | |
Leasehold improvements
|
| | | | 732 | | | | | | 1,067 | | |
Construction in progress
|
| | | | 9,005 | | | | | | 21 | | |
Accumulated depreciation
|
| | | | (2,158) | | | | | | (3,626) | | |
Property, plant and equipment, net
|
| | | $ | 9,263 | | | | | $ | 1,127 | | |
(In thousands)
|
| |
March 31,
2019 |
| |
March 31,
2018 |
| ||||||
Restructuring reserves
|
| | | $ | 2,482 | | | | | $ | 2,462 | | |
Accrued employee expenses
|
| | | | 1,651 | | | | | | 1,731 | | |
Accrued taxes
|
| | | | 329 | | | | | | 310 | | |
Accrued legal
|
| | | | — | | | | | | 15,204 | | |
Accrued other
|
| | | | 1,418 | | | | | | 1,586 | | |
Other accrued liabilities
|
| | | $ | 5,880 | | | | | $ | 21,293 | | |
| | |
Noncancelable
Operating leases |
| |||
2020
|
| | | $ | 2,187 | | |
2021
|
| | | | 2,168 | | |
2022
|
| | | | 1,846 | | |
2023
|
| | | | 1,635 | | |
2024
|
| | | | 1,665 | | |
Thereafter
|
| | | | 3,140 | | |
Total minimun lease payments
|
| | | $ | 12,641 | | |
| | |
Nine months ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Revenues
|
| | | $ | 99,544 | | | | | $ | 101,433 | | |
Cost of sales
|
| | | | (63,863) | | | | | | (66,594) | | |
Gross profit
|
| | | | 35,681 | | | | | | 34,839 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, distribution and administrative expenses
|
| | | | (58,876) | | | | | | (62,662) | | |
Restructuring charges
|
| | | | (3,245) | | | | | | (6,009) | | |
Total operating expenses
|
| | | | (62,121) | | | | | | (68,671) | | |
Operating loss
|
| | | | (26,440) | | | | | | (33,832) | | |
Other expense, net
|
| | | | 76 | | | | | | 35 | | |
Loss from operations before income taxes
|
| | | | (26,364) | | | | | | (33,797) | | |
Income tax expense
|
| | | | — | | | | | | — | | |
Net loss attributable to Patient Care Solutions Business
|
| | | | (26,364) | | | | | | (33,797) | | |
Comprehensive loss
|
| | | | (26,364) | | | | | | (33,797) | | |
Comprehensive loss attributable to Patient Care Solutions Business
|
| | | $ | (26,364) | | | | | $ | (33,797) | | |
| | |
As of
December 31, 2019 |
| |
As of
March 31, 2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 70 | | | | | $ | 18,908 | | |
Receivables, net
|
| | | | 16,341 | | | | | | 16,997 | | |
Contract assets
|
| | | | 5,550 | | | | | | 7,548 | | |
Prepaid expenses and other
|
| | | | 793 | | | | | | 915 | | |
Total current assets
|
| | | | 22,754 | | | | | | 44,368 | | |
Property, plant and equipment, net
|
| | | | 9,118 | | | | | | 9,263 | | |
Other noncurrent assets
|
| | | | 9,763 | | | | | | 15 | | |
Total assets
|
| | | $ | 41,635 | | | | | $ | 53,646 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Drafts and accounts payable
|
| | | $ | 2,651 | | | | | $ | 4,103 | | |
Other accrued liabilities
|
| | | | 6,260 | | | | | | 5,880 | | |
Total current liabilities
|
| | | | 8,911 | | | | | | 9,983 | | |
Other noncurrent liabilities
|
| | | | 8,200 | | | | | | 89 | | |
Net parent investment
|
| | | | 24,524 | | | | | | 43,574 | | |
Total liabilities and equity
|
| | | $ | 41,635 | | | | | $ | 53,646 | | |
| | |
Net Parent
Investment |
| |||
Balance as of March 31, 2018
|
| | | $ | 8,689 | | |
Net loss
|
| | | | (33,797) | | |
Cumulative effect on opening net parent investment of adopting accounting standards and other
|
| | | | 7,964 | | |
Net transfers from parent
|
| | | | 58,608 | | |
Balance as of December 31, 2018
|
| | | $ | 41,464 | | |
Balance as of March 31, 2019
|
| | | $ | 43,574 | | |
Net loss
|
| | | | (26,364) | | |
Net transfers from parent
|
| | | | 7,314 | | |
Balance as of December 31, 2019
|
| | | $ | 24,524 | | |
| | |
Nine months ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Net loss
|
| | | $ | (26,364) | | | | | $ | (33,797) | | |
Adjustments to reconcile to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation
|
| | | | 263 | | | | | | 790 | | |
Provision for bad debts
|
| | | | (1,295) | | | | | | (1,388) | | |
Non-cash operating lease expense
|
| | | | 1,568 | | | | | | — | | |
Changes in assets and liabilities, net of acquisitions: | | | | | | | | | | | | | |
Receivables
|
| | | | 1,951 | | | | | | 3,758 | | |
Contract assets
|
| | | | 1,998 | | | | | | (157) | | |
Prepaid expenses and other
|
| | | | 122 | | | | | | (322) | | |
Drafts and accounts payable
|
| | | | (1,452) | | | | | | (5,362) | | |
Other accrued liabilities
|
| | | | (1,576) | | | | | | (14,531) | | |
Operating leases
|
| | | | (1,223) | | | | | | — | | |
Other
|
| | | | (26) | | | | | | 15 | | |
Net cash used in operating activities
|
| | | | (26,034) | | | | | | (50,994) | | |
Investing Activities | | | | | | | | | | | | | |
Payments for property, plant and equipment
|
| | | | (118) | | | | | | (6,198) | | |
Net cash used in investing activities
|
| | | | (118) | | | | | | (6,198) | | |
Financing Activities | | | | | | | | | | | | | |
Net transfers from parent
|
| | | | 7,314 | | | | | | 58,608 | | |
Net cash provided by financing activities
|
| | | | 7,314 | | | | | | 58,608 | | |
Net increase in cash and cash equivalents
|
| | | | (18,838) | | | | | | 1,416 | | |
Cash and cash equivalents at beginning of year
|
| | | | 18,908 | | | | | | 17,659 | | |
Cash and cash equivalents at end of year
|
| | | $ | 70 | | | | | $ | 19,075 | | |
| | |
Nine months ended
December 31, |
| |||||||||
(In thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Cost of sales
|
| | | $ | (1,768) | | | | | $ | (1,768) | | |
Selling, distribution and administrative expenses
|
| | | $ | 12,546 | | | | | $ | 12,175 | | |
Total corporate allocations
|
| | | $ | 10,778 | | | | | $ | 10,408 | | |
| | |
Nine months
ended December 31, |
| |||||||||
(In thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Severance and employee-related costs, net
|
| | | $ | (250) | | | | | $ | 3,249 | | |
Exit and other-related costs
|
| | | | 3,499 | | | | | | 3,231 | | |
Asset impairments and accelerated depreciation
|
| | | | (4) | | | | | | 477 | | |
Total
|
| | | $ | 3,245 | | | | | $ | 6,957 | | |
|
(In thousands)
|
| | | | | | |
Balance as of March 31, 2019
|
| | | $ | 2,482 | | |
Restructuring charges recognized
|
| | | | 3,245 | | |
Non-cash charges
|
| | | | (4) | | |
Cash payments
|
| | | | (1,267) | | |
Temporary costs
|
| | | | (3,488) | | |
Balance as of December 31, 2019
|
| | | $ | 968 | | |
(In thousands)
|
| |
December 31,
2019 |
| |
March 31,
2019 |
| ||||||
Restructuring reserves
|
| | | $ | 968 | | | | | $ | 2,482 | | |
Accrued employee expenses
|
| | | | 1,497 | | | | | | 1,651 | | |
Operating lease liability – current
|
| | | | 1,956 | | | | | | — | | |
Accrued taxes
|
| | | | 300 | | | | | | 329 | | |
Refunds payable
|
| | | | 410 | | | | | | 461 | | |
Accrued other
|
| | | | 1,129 | | | | | | 957 | | |
Other accrued liabilities
|
| | | $ | 6,260 | | | | | $ | 5,880 | | |
(In thousands)
|
| |
December 31,
2019 |
| |||
Operating leases | | | | | | | |
Operating lease right-of-use assets
|
| | | $ | 9,747 | | |
Current portion of operating lease liabilities
|
| | | | 1,956 | | |
Long-term operating lease liabilities
|
| | | | 8,136 | | |
Total operating lease liabilities
|
| | | $ | 10,092 | | |
Weighted average remaining lease term (years) | | | | | | | |
Operating leases
|
| | | | 5.62 | | |
Weighted average discount rate | | | | | | | |
Operating leases
|
| | | | 3.31 | | |
|
(In thousands)
|
| |
Nine months
ended December 31, 2019 |
| |||
Short-term lease cost
|
| | | $ | 1,597 | | |
Operating lease cost
|
| | | | 237 | | |
Variable lease cost(1)
|
| | | | 230 | | |
Total lease cost(2)
|
| | | $ | 2,064 | | |
(In thousands)
|
| |
Nine months
ended December 31, 2019 |
| |||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows from operating leases
|
| | | $ | 1,654 | | |
Right-of-use assets obtained in exchange for lease obligations: | | | | | | | |
Operating leases
|
| | | | 11,481 | | |
(In thousands)
|
| |
Operating
leases |
| |||
The remainder of 2020
|
| | | $ | 558 | | |
2021
|
| | | | 2,199 | | |
2022
|
| | | | 1,862 | | |
2023
|
| | | | 1,651 | | |
2024
|
| | | | 1,666 | | |
Thereafter
|
| | | | 3,140 | | |
Total lease payments
|
| | | | 11,076 | | |
Less imputed interest
|
| | | | 985 | | |
Present value of lease liabilities
|
| | | $ | 10,091 | | |
|
(In thousands)
|
| |
Noncancelable
operating leases |
| |||
2020
|
| | | $ | 2,187 | | |
2021
|
| | | | 2,168 | | |
2022
|
| | | | 1,846 | | |
2023
|
| | | | 1,635 | | |
2024
|
| | | | 1,665 | | |
Thereafter
|
| | | | 3,140 | | |
Total minimum lease payments
|
| | | $ | 12,641 | | |
| | | | | F-111 | | | |
| | | | | F-112 | | | |
| | | | | F-113 | | | |
| | | | | F-114 | | | |
| | | | | F-115 – F-123 | | |
| | |
March 31, 2020
|
| |
December 31, 2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 21,579,000 | | | | | $ | 9,768,000 | | |
Accounts Receivable, Net
|
| | | | 25,991,000 | | | | | | 26,970,000 | | |
Inventory
|
| | | | 9,373,000 | | | | | | 18,213,000 | | |
Prepaid Expenses and Other Current Assets
|
| | | | 3,974,000 | | | | | | 3,155,000 | | |
Total Current Assets
|
| | | $ | 60,917,000 | | | | | $ | 58,106,000 | | |
Property and Equipment, Net
|
| | | | 2,517,000 | | | | | | 2,181,000 | | |
Rental Pumps, Net
|
| | | | 1,994,000 | | | | | | 2,323,000 | | |
Goodwill
|
| | | | 110,355,000 | | | | | | 110,355,000 | | |
Intangible Assets, Net
|
| | | | 53,170,000 | | | | | | 54,801,000 | | |
Other Assets
|
| | | | 70,000 | | | | | | 70,000 | | |
TOTAL ASSETS
|
| | | $ | 229,023,000 | | | | | $ | 227,836,000 | | |
LIABILITIES AND MEMBERS’ EQUITY | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable
|
| | | $ | 13,555,000 | | | | | $ | 26,498,000 | | |
Accrued Expenses
|
| | | | 16,576,000 | | | | | | 19,527,000 | | |
Debt, Current Portion
|
| | | | 1,660,000 | | | | | | 1,660,000 | | |
Contingent Consideration, Current Portion
|
| | | | 5,212,000 | | | | | | 5,156,000 | | |
Total Current Liabilities
|
| | | $ | 37,003,000 | | | | | $ | 52,841,000 | | |
Debt, Net of Debt Acquisition Costs
|
| | | | 179,467,000 | | | | | | 159,708,000 | | |
Other Long-Term Liabilities
|
| | | | 144,000 | | | | | | 149,000 | | |
TOTAL LIABILITIES
|
| | | $ | 216,614,000 | | | | | $ | 212,698,000 | | |
Commitments and Contingencies (Note 5) | | | | | | | | | | | | | |
Members’ Equity | | | | | | | | | | | | | |
Common Units
|
| | | | 944,000 | | | | | | 944,000 | | |
Preferred Units (Class A)
|
| | | | 63,240,000 | | | | | | 63,240,000 | | |
Preferred Units (Class B)
|
| | | | 25,740,000 | | | | | | 25,740,000 | | |
Accumulated Deficit
|
| | | | (77,515,000) | | | | | | (74,786,000) | | |
TOTAL MEMBERS’ EQUITY
|
| | | $ | 12,409,000 | | | | | $ | 15,138,000 | | |
TOTAL LIABILITIES AND MEMBERS’ EQUITY
|
| | | $ | 229,023,000 | | | | | $ | 227,836,000 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue, Net
|
| | | $ | 39,681,000 | | | | | $ | 37,676,000 | | |
Cost of Goods Sold
|
| | | | 24,387,000 | | | | | | 23,666,000 | | |
Gross Profit
|
| | | $ | 15,294,000 | | | | | $ | 14,010,000 | | |
Operating Expenses | | | | | | | | | | | | | |
Selling, General and Administrative Expenses
|
| | | | 12,398,000 | | | | | | 11,531,000 | | |
Operating Income
|
| | | $ | 2,896,000 | | | | | $ | 2,479,000 | | |
Interest Expense
|
| | | | (3,565,000) | | | | | | (2,395,000) | | |
Other Income
|
| | | | 31,000 | | | | | | 26,000 | | |
(Loss) Income Before Income Taxes
|
| | | $ | (638,000) | | | | | $ | 110,000 | | |
Income Tax Expense
|
| | | | — | | | | | | (73,000) | | |
Net (Loss) Income
|
| | | $ | (638,000) | | | | | $ | 37,000 | | |
| | |
Common Units
|
| |
Preferred Units (Class A)
|
| |
Preferred Units (Class B)
|
| |
Accumulated
Deficit |
| |
Total Members’
Equity |
| |||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Number
of Units |
| |
Amount
|
| |
Number
of Units |
| |
Amount
|
| |
Number
of Units |
| ||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
| | | $ | 944,000 | | | | | | 898,740 | | | | | $ | 63,240,000 | | | | | | 63,240 | | | | | $ | 25,740,000 | | | | | | 25,740 | | | | | $ | (74,786,000) | | | | | $ | 15,138,000 | | |
Distributions to Members
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,091,000) | | | | | | (2,091,000) | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (638,000) | | | | | | (638,000) | | |
Balance at March 31, 2020
|
| | | $ | 944,000 | | | | | | 898,740 | | | | | $ | 63,240,000 | | | | | | 63,240 | | | | | $ | 25,740,000 | | | | | | 25,740 | | | | | $ | (77,515,000) | | | | | $ | 12,409,000 | | |
|
| | |
Common Units
|
| |
Preferred Units (Class A)
|
| |
Preferred Units (Class B)
|
| |
Accumulated
Deficit |
| |
Total Members’
Equity |
| |||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Number
of Units |
| |
Amount
|
| |
Number
of Units |
| |
Amount
|
| |
Number
of Units |
| ||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
| | | $ | 896,000 | | | | | | 895,740 | | | | | $ | 62,938,000 | | | | | | 62,938 | | | | | $ | 25,740,000 | | | | | | 25,740 | | | | | $ | (4,573,000) | | | | | $ | 85,001,000 | | |
Members Contributions
|
| | | | 48,000 | | | | | | 3,000 | | | | | | 302,000 | | | | | | 302 | | | | | | — | | | | | | — | | | | | | — | | | | | | 350,000 | | |
Distributions to Members
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (71,059,000) | | | | | | (71,059,000) | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,000 | | | | | | 37,000 | | |
Balance at March 31, 2019
|
| | | $ | 944,000 | | | | | | 898,740 | | | | | $ | 63,240,000 | | | | | | 63,240 | | | | | $ | 25,740,000 | | | | | | 25,740 | | | | | $ | (75,595,000) | | | | | $ | 14,329,000 | | |
|
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income/(Loss)
|
| | | $ | (638,000) | | | | | $ | 37,000 | | |
Adjustments to Reconcile Net Income/(Loss) to Net Cash Used in Operating Activities
|
| | | | | | | | | | | | |
Depreciation and Amortization
|
| | | | 1,791,000 | | | | | | 1,767,000 | | |
Rental Pump Amortization
|
| | | | 1,127,000 | | | | | | 956,000 | | |
Deferred Rent
|
| | | | (5,000) | | | | | | — | | |
Change in Fair Value of Contingent Liability
|
| | | | 56,000 | | | | | | 171,000 | | |
Bad Debt Expense and Contractual Allowance
|
| | | | 1,202,000 | | | | | | 3,214,000 | | |
Amortization of Debt Acquisition Costs
|
| | | | 178,000 | | | | | | 160,000 | | |
Changes in Operating Assets and Liabilities
|
| | | | | | | | | | | | |
Accounts Receivable, Net
|
| | | | (223,000) | | | | | | (362,000) | | |
Inventory
|
| | | | 8,041,000 | | | | | | (20,000) | | |
Prepaid Expenses and Other Current Assets
|
| | | | (819,000) | | | | | | (509,000) | | |
Accounts Payable
|
| | | | (12,943,000) | | | | | | (4,086,000) | | |
Accrued Expenses
|
| | | | (2,950,000) | | | | | | (3,117,000) | | |
Net Cash Used in Operating Activities
|
| | | $ | (5,183,000) | | | | | $ | (1,789,000) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Purchases of Property and Equipment
|
| | | | (496,000) | | | | | | (67,000) | | |
Purchase Price Adjustment
|
| | | | — | | | | | | (126,000) | | |
Net Cash Used in Investing Activities
|
| | | $ | (496,000) | | | | | $ | (193,000) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from Term Loan
|
| | | | — | | | | | | 72,000,000 | | |
Proceeds from Revolving Line of Credit
|
| | | | 20,000,000 | | | | | | — | | |
Payments of Debt Acquisition Costs
|
| | | | — | | | | | | (2,170,000) | | |
Term Loan Repayments
|
| | | | (419,000) | | | | | | (380,000) | | |
Distributions to Members
|
| | | | (2,091,000) | | | | | | (71,059,000) | | |
Members Contributions
|
| | | | — | | | | | | 350,000 | | |
Net Cash Provided by/(Used in) Financing Activities
|
| | | $ | 17,490,000 | | | | | $ | (1,259,000) | | |
Increase (Decrease) in Cash
|
| | | $ | 11,811,000 | | | | | $ | (3,241,000) | | |
Cash, Beginning of Period
|
| | | | 9,768,000 | | | | | | 10,643,000 | | |
Cash, End of Period
|
| | | $ | 21,579,000 | | | | | $ | 7,402,000 | | |
Supplemental Disclosures of Cash Flow Information: | | | | | | | | | | | | | |
Cash Paid During the Period for Interest
|
| | | $ | 3,387,000 | | | | | $ | 2,235,000 | | |
Cash Paid During the Period for Income Taxes
|
| | | | — | | | | | | 73,000 | | |
| | |
Three Months Ended March 31,
|
| | | | |||||||||
Performance Obligations
|
| |
2020
|
| |
2019
|
| |
Timing of Transfer
|
| ||||||
Product Sales
|
| | | $ | 38,386,000 | | | | | $ | 36,507,000 | | | |
Point in Time
|
|
Pump Equipment Rentals
|
| | | | 1,295,000 | | | | | | 1,169,000 | | | | Over Time | |
| | | | $ | 39,681,000 | | | | | $ | 37,676,000 | | | | | |
|
Payor contracts
|
| |
10 years
|
|
|
Trademarks
|
| |
10 years
|
|
|
Leasehold Interest
|
| |
5 years
|
|
|
Domain Name
|
| |
10 years
|
|
| | | | | | | | |
Fair Value Measurements at Reporting Date Using
|
| |||||||||||||||
| | |
Balance
|
| |
Level 1 Inputs
|
| |
Level 2 Inputs
|
| |
Level 3 Inputs
|
| ||||||||||||
March 31, 2020: | | | | | | ||||||||||||||||||||
Contingent Consideration
|
| | | $ | 5,212,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,212,000 | | |
December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent Consideration
|
| | | $ | 5,156,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,156,000 | | |
| Three Months Ended March 31, 2020: | | | | | | | |
|
Beginning Balance
|
| | | $ | 5,156,000 | | |
|
Adjustment in Fair Value of Contingent Consideration
|
| | | | 56,000 | | |
|
Ending Balance
|
| | | $ | 5,212,000 | | |
|
| Three Months Ended March 31, 2019: | | | | | | | |
|
Beginning Balance
|
| | | $ | 20,266,000 | | |
|
Adjustment in Fair Value of Contingent Consideration
|
| | | | 171,000 | | |
|
Ending Balance
|
| | | $ | 20,437,000 | | |
|
| | |
Useful Life
|
| |
March 31, 2020
|
| |
December 31, 2019
|
| ||||||
Leasehold Improvements
|
| |
5 Years (or remaining lease term)
|
| | | $ | 851,000 | | | | | $ | 848,000 | | |
Furniture and Fixtures
|
| | 7 Years | | | | | 477,000 | | | | | | 476,000 | | |
Software
|
| | 3 Years | | | | | 361,000 | | | | | | 361,000 | | |
Computer Equipment
|
| | 5 Years | | | | | 246,000 | | | | | | 206,000 | | |
Vehicles
|
| | 6 Years | | | | | 13,000 | | | | | | 13,000 | | |
Construction in Process
|
| | | | | | | 1,019,000 | | | | | | 567,000 | | |
| | | | | | | $ | 2,967,000 | | | | | $ | 2,471,000 | | |
Less Accumulated Depreciation and Amortization
|
| | | | | | | (450,000) | | | | | | (290,000) | | |
Total
|
| | | | | | $ | 2,517,000 | | | | | $ | 2,181,000 | | |
|
| | |
March 31, 2020
|
| |
December 31, 2019
|
| ||||||
Accrued Distribution to Members
|
| | | $ | 2,091,000 | | | | | $ | 1,709,000 | | |
Third-Party Overpayments
|
| | | | 8,544,000 | | | | | | 8,263,000 | | |
Customer Deposits
|
| | | | 1,788,000 | | | | | | 1,415,000 | | |
Payroll Liabilities
|
| | | | 1,611,000 | | | | | | 2,846,000 | | |
Sales and Use Tax Payable
|
| | | | 1,273,000 | | | | | | 1,693,000 | | |
Other Accrued Liabilities
|
| | | | 1,269,000 | | | | | | 3,601,000 | | |
Total
|
| | | $ | 16,576,000 | | | | | $ | 19,527,000 | | |
Twelve Months Ending March 31,
|
| | | | | | |
2021
|
| | | $ | 761,000 | | |
2022
|
| | | | 914,000 | | |
2023
|
| | | | 715,000 | | |
2024
|
| | | | 805,000 | | |
| | | | $ | 3,195,000 | | |
| | |
Payor Contracts
|
| |
Trademarks
|
| |
Leasehold
Interest |
| |
Domain Name
|
| ||||||||||||
Three Months Ended March 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning Balance
|
| | | $ | 38,724,000 | | | | | $ | 15,992,000 | | | | | $ | 61,000 | | | | | $ | 24,000 | | |
Amortization Expense
|
| | | | (1,151,000) | | | | | | (475,000) | | | | | | (4,000) | | | | | | (1,000) | | |
Ending Balance
|
| | | $ | 37,573,000 | | | | | $ | 15,517,000 | | | | | $ | 57,000 | | | | | $ | 23,000 | | |
|
| | |
Payor Contracts
|
| |
Trademarks
|
| |
Leasehold
Interest |
| | | | |||||||||
Three Months Ended March 31, 2019: | | | | | | | | | | | | | | | | | | | | | ||
Beginning Balance
|
| | | $ | 43,325,000 | | | | | $ | 17,892,000 | | | | | $ | 79,000 | | | | | |
Amortization Expense
|
| | | | (1,151,000) | | | | | | (475,000) | | | | | | (4,000) | | | | | |
Ending Balance
|
| | | $ | 42,174,000 | | | | | $ | 17,417,000 | | | | | $ | 75,000 | | | | | |
Years Ending March 31,
|
| | | | | | |
2021
|
| | | $ | 6,520,000 | | |
2022
|
| | | | 6,520,000 | | |
2023
|
| | | | 6,520,000 | | |
2024
|
| | | | 6,520,000 | | |
2025
|
| | | | 6,520,000 | | |
Thereafter
|
| | | | 20,570,000 | | |
| | | | $ | 53,170,000 | | |
| | | | | F-126 | | | |
| | | | | F-127 | | | |
| | | | | F-128 | | | |
| | | | | F-129 | | | |
| | | | | F-130 | | | |
| | | | | F-131 | | | |
| | | | | F-132 – F-144 | | |
| | |
Successor
|
| |
Successor
|
| ||||||
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 9,768,000 | | | | | $ | 10,643,000 | | |
Accounts Receivable, Net
|
| | | | 26,970,000 | | | | | | 21,889,000 | | |
Inventory
|
| | | | 18,213,000 | | | | | | 8,528,000 | | |
Prepaid Expenses and Other Current Assets
|
| | | | 3,155,000 | | | | | | 811,000 | | |
Total Current Assets
|
| | | $ | 58,106,000 | | | | | $ | 41,871,000 | | |
Property and Equipment, Net
|
| | | | 2,181,000 | | | | | | 2,088,000 | | |
Rental Pumps, Net
|
| | | | 2,323,000 | | | | | | 1,922,000 | | |
Goodwill | | | | | 110,355,000 | | | | | | 110,924,000 | | |
Intangible Assets, Net
|
| | | | 54,801,000 | | | | | | 61,296,000 | | |
Other Assets
|
| | | | 70,000 | | | | | | 36,000 | | |
TOTAL ASSETS
|
| | | $ | 227,836,000 | | | | | $ | 218,137,000 | | |
LIABILITIES AND MEMBERS’ EQUITY | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable
|
| | | $ | 26,498,000 | | | | | $ | 17,717,000 | | |
Accrued Expenses
|
| | | | 19,527,000 | | | | | | 18,049,000 | | |
Debt, Current Portion
|
| | | | 1,660,000 | | | | | | 4,000,000 | | |
Contingent Consideration, Current Portion
|
| | | | 5,156,000 | | | | | | 15,750,000 | | |
Total Current Liabilities
|
| | | $ | 52,841,000 | | | | | $ | 55,516,000 | | |
Debt, Net of Debt Acquisition Costs
|
| | | | 159,708,000 | | | | | | 72,770,000 | | |
Contingent Consideration, Long-Term
|
| | | | — | | | | | | 4,516,000 | | |
Other Long-Term Liabilities
|
| | | | 149,000 | | | | | | 334,000 | | |
TOTAL LIABILITIES
|
| | | $ | 212,698,000 | | | | | $ | 133,136,000 | | |
Commitments and Contingencies (Notes 5 and 6) | | | | | | | | | | | | | |
Members’ Equity | | | | | | | | | | | | | |
Common Units
|
| | | | 944,000 | | | | | | 896,000 | | |
Preferred Units (Class A)
|
| | | | 63,240,000 | | | | | | 62,938,000 | | |
Preferred Units (Class B)
|
| | | | 25,740,000 | | | | | | 25,740,000 | | |
Accumulated Deficit
|
| | | | (74,786,000) | | | | | | (4,573,000) | | |
TOTAL MEMBERS’ EQUITY
|
| | | $ | 15,138,000 | | | | | $ | 85,001,000 | | |
TOTAL LIABILITIES AND MEMBERS’ EQUITY
|
| | | $ | 227,836,000 | | | | | $ | 218,137,000 | | |
|
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
| | |
Year End
December 31, 2019 |
| |
Period from
June 1, 2018 to December 31, 2018 |
| | |
Period from
January 1, 2018 to May 31, 2018 |
| |||||||||
Revenue, Net
|
| | | $ | 183,352,000 | | | | | $ | 99,928,000 | | | | | | $ | 44,186,000 | | |
Cost of Goods Sold
|
| | | | 113,335,000 | | | | | | 63,184,000 | | | | | | | 29,660,000 | | |
Gross Profit
|
| | | $ | 70,017,000 | | | | | $ | 36,744,000 | | | | | | $ | 14,526,000 | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | | |
Selling, General and Administrative Expenses
|
| | | | 44,360,000 | | | | | | 22,400,000 | | | | | | | 6,039,000 | | |
Operating Income
|
| | | $ | 25,657,000 | | | | | $ | 14,344,000 | | | | | | $ | 8,487,000 | | |
Interest Expense
|
| | | | (13,261,000) | | | | | | (5,201,000) | | | | | | | — | | |
Other Income
|
| | | | 135,000 | | | | | | 107,000 | | | | | | | 80,000 | | |
Income Before Income Taxes
|
| | | $ | 12,531,000 | | | | | $ | 9,250,000 | | | | | | $ | 8,567,000 | | |
Income Tax Expense
|
| | | | (294,000) | | | | | | (7,000) | | | | | | | (120,000) | | |
Net Income
|
| | | $ | 12,237,000 | | | | | $ | 9,243,000 | | | | | | $ | 8,447,000 | | |
| | |
Common Units
|
| |
Preferred Units (Class A)
|
| |
Preferred Units (Class B)
|
| |
Accumulated
Deficit |
| |
Total
Members’ Equity |
| |||||||||||||||||||||||||||||||||
| | |
Amount
|
| |
Number of
Units |
| |
Amount
|
| |
Number of
Units |
| |
Amount
|
| |
Number of
Units |
| ||||||||||||||||||||||||||||||
Balance at June 1, 2018
|
| | | $ | 896,000 | | | | | | 895,740 | | | | | $ | 62,938,000 | | | | | | 62,938 | | | | | $ | 25,740,000 | | | | | | 25,740 | | | | | $ | (7,528,000) | | | | | $ | 82,046,000 | | |
Distributions to Members
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,288,000) | | | | | | (6,288,000) | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,243,000 | | | | | | 9,243,000 | | |
Balance at December 31, 2018
|
| | | $ | 896,000 | | | | | | 895,740 | | | | | $ | 62,938,000 | | | | | | 62,938 | | | | | $ | 25,740,000 | | | | | | 25,740 | | | | | $ | (4,573,000) | | | | | $ | 85,001,000 | | |
Members Contributions
|
| | | | 48,000 | | | | | | 3,000 | | | | | | 302,000 | | | | | | 302 | | | | | | — | | | | | | — | | | | | | — | | | | | | 350,000 | | |
Distributions to Members
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (82,450,000) | | | | | | (82,450,000) | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,237,000 | | | | | | 12,237,000 | | |
Balance at December 31, 2019
|
| | | $ | 944,000 | | | | | | 898,740 | | | | | $ | 63,240,000 | | | | | | 63,240 | | | | | $ | 25,740,000 | | | | | | 25,740 | | | | | $ | (74,786,000) | | | | | $ | 15,138,000 | | |
|
| | |
Common Stock
|
| |
Retained
Earnings |
| |
Total
Stockholder’s Equity |
| |||||||||||||||
| | |
Amount
|
| |
Number of Shares
|
| ||||||||||||||||||
Balance at December 31, 2017
|
| | | $ | 20,000 | | | | | | 20,000 | | | | | $ | 18,855,000 | | | | | $ | 18,875,000 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | 8,447,000 | | | | | | 8,447,000 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | (12,668,000) | | | | | | (12,668,000) | | |
Balance at May 31, 2018
|
| | | $ | 20,000 | | | | | | 20,000 | | | | | $ | 14,634,000 | | | | | $ | 14,654,000 | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
| | |
Year Ended
December 31, 2019 |
| |
Period from
June 1, 2018 to December 31, 2018 |
| | |
Period from
January 1, 2018 to May 31, 2018 |
| |||||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | | | | | | | | |
Net Income
|
| | | $ | 12,237,000 | | | | | $ | 9,243,000 | | | | | | $ | 8,447,000 | | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
|
| | | | | | | | | | | | | | | | | | | |
Depreciation and Amortization
|
| | | | 7,110,000 | | | | | | 4,232,000 | | | | | | | 135,000 | | |
Rental Pump Amortization
|
| | | | 4,173,000 | | | | | | 1,671,000 | | | | | | | 912,000 | | |
Loss on Disposition of Assets
|
| | | | — | | | | | | — | | | | | | | 166,000 | | |
Deferred Rent
|
| | | | 62,000 | | | | | | 190,000 | | | | | | | — | | |
Change in Fair Value of Contingent Liability
|
| | | | 640,000 | | | | | | 576,000 | | | | | | | — | | |
Bad Debt Expense and Contractual Allowance
|
| | | | 6,730,000 | | | | | | 3,649,000 | | | | | | | 394,000 | | |
Amortization of Debt Acquisition Costs
|
| | | | 640,000 | | | | | | 1,088,000 | | | | | | | — | | |
Changes in Operating Assets and Liabilities
|
| | | | | | | | | | | | | | | | | | | |
Accounts Receivable, Net
|
| | | | (11,811,000) | | | | | | (13,511,000) | | | | | | | 7,433,000 | | |
Inventory
|
| | | | (14,259,000) | | | | | | (8,616,000) | | | | | | | 2,329,000 | | |
Prepaid Expenses and Other Current Assets
|
| | | | (2,378,000) | | | | | | 150,000 | | | | | | | (114,000) | | |
Accounts Payable
|
| | | | 8,781,000 | | | | | | 14,090,000 | | | | | | | (5,425,000) | | |
Accrued Expenses
|
| | | | 1,479,000 | | | | | | 8,565,000 | | | | | | | 2,368,000 | | |
Net Cash Provided by Operating Activities
|
| | | $ | 13,404,000 | | | | | $ | 21,327,000 | | | | | | $ | 16,645,000 | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | | | | | | | | |
Purchases of Property and Equipment
|
| | | | (930,000) | | | | | | (1,351,000) | | | | | | | (248,000) | | |
Purchase of Intangible Asset
|
| | | | (25,000) | | | | | | — | | | | | | | — | | |
Purchase Price Adjustment
|
| | | | 569,000 | | | | | | — | | | | | | | — | | |
Net Investment in Acquired Business
|
| | | | — | | | | | | (1,506,000) | | | | | | | — | | |
Net Cash Used in Investing Activities
|
| | | $ | (386,000) | | | | | $ | (2,857,000) | | | | | | $ | (248,000) | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | | | | | | | | |
Proceeds from Term Loan
|
| | | | 87,700,000 | | | | | | — | | | | | | | — | | |
Payments of Debt Acquisition Costs
|
| | | | (2,173,000) | | | | | | — | | | | | | | — | | |
Term Loan Repayments
|
| | | | (1,570,000) | | | | | | (2,000,000) | | | | | | | (25,000) | | |
Dividends | | | | | — | | | | | | — | | | | | | | (12,668,000) | | |
Distributions | | | | | (82,450,000) | | | | | | (13,816,000) | | | | | | | — | | |
Contributions | | | | | 350,000 | | | | | | — | | | | | | | — | | |
Payments of Contingent Consideration
|
| | | | (15,750,000) | | | | | | — | | | | | | | — | | |
Net Cash Used in Financing Activities
|
| | | $ | (13,893,000) | | | | | $ | (15,816,000) | | | | | | $ | (12,693,000) | | |
(Decrease) Increase in Cash
|
| | | $ | (875,000) | | | | | $ | 2,654,000 | | | | | | $ | 3,704,000 | | |
Cash, Beginning of the Year
|
| | | | 10,643,000 | | | | | | 7,989,000 | | | | | | | 6,522,000 | | |
Cash, End of the Year
|
| | | $ | 9,768,000 | | | | | $ | 10,643,000 | | | | | | $ | 10,226,000 | | |
Supplemental Disclosures of Cash Flow Information | | | | | | | | | | | | | | | | | | | | |
Cash Paid During the Period for Interest
|
| | | $ | 12,621,000 | | | | | $ | 4,113,000 | | | | | | $ | — | | |
Cash Paid During the Period for Income Taxes
|
| | | | 294,000 | | | | | | 7,000 | | | | | | | 120,000 | | |
Contingent Liability Recognized at Purchase Date
|
| | | | — | | | | | | 19,690,000 | | | | | | | — | | |
| | |
Revenues, Net
|
| | | | ||||||||||||||||
| | |
Successor
|
| | |
Predecessor
|
| | | | ||||||||||||
Performance Obligations
|
| |
Year Ended
December 31, 2019 |
| |
Period from
June 1, 2018 to December 31, 2018 |
| | |
Period from
January 1, 2018 to May 31, 2018 |
| |
Timing
of Transfer |
| |||||||||
Product Sales
|
| | | $ | 178,205,000 | | | | | $ | 97,764,000 | | | | | | $ | 42,979,000 | | | |
Point in Time
|
|
Pump Equipment Rentals
|
| | | | 5,147,000 | | | | | | 2,164,000 | | | | | | | 1,207,000 | | | |
Over Time
|
|
| | | | $ | 183,352,000 | | | | | $ | 99,928,000 | | | | | | $ | 44,186,000 | | | | | |
|
Payor Contracts
|
| |
10 years
|
|
|
Trademarks
|
| |
10 years
|
|
|
Leasehold Interest
|
| |
5 years
|
|
|
Domain Name
|
| |
10 years
|
|
| | | | | | | | |
Fair Value Measurements at Reporting Date Using
|
| |||||||||||||||
| | |
Balance
|
| |
Quoted Prices in
Active Market for Identical Assets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent Consideration, 2019
|
| | | $ | 5,156,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,156,000 | | |
Contingent Consideration, 2018
|
| | | $ | 20,266,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 20,266,000 | | |
| | |
Fair Value Measurements
at Reporting Date Using Significant Unobservable Inputs (Level 3) |
| |||
Balance at May 31, 2018
|
| | | $ | — | | |
Establishment of Contingent Consideration
|
| | | | 19,690,000 | | |
Adjustment in Fair Value of Contingent Consideration
|
| | | | 576,000 | | |
Balance at December 31, 2018
|
| | | $ | 20,266,000 | | |
Payments of Contingent Consideration
|
| | | | (15,750,000) | | |
Adjustment in Fair Value of Contingent Consideration
|
| | | | 640,000 | | |
Balance at December 31, 2019
|
| | | $ | 5,156,000 | | |
|
| | |
As of December 31,
|
| | | | |||||||||
| | |
2019
|
| |
2018
|
| | ||||||||
Significant unobservable inputs (Level 3): | | | | | | | | | | | | | | | ||
Goodwill (annual impairment assessment)
|
| | | $ | 110,355,000 | | | | | $ | 110,924,000 | | | |
| | | | | |
Successor
|
| |||||||||
| | |
Useful Life
|
| |
As of
December 31, 2019 |
| |
As of
December 31, 2018 |
| ||||||
Leasehold Improvements
|
| |
5 Years (or remaining lease term)
|
| | | $ | 848,000 | | | | | $ | 1,072,000 | | |
Furniture and Fixtures
|
| | 7 Years | | | | | 476,000 | | | | | | 574,000 | | |
Software
|
| | 3 Years | | | | | 361,000 | | | | | | 173,000 | | |
Computer Equipment
|
| | 5 Years | | | | | 206,000 | | | | | | 401,000 | | |
Office Equipment
|
| | 4 Years | | | | | — | | | | | | 15,000 | | |
Telephone System
|
| | 4 Years | | | | | — | | | | | | 39,000 | | |
Vehicles
|
| | 6 Years | | | | | 13,000 | | | | | | 13,000 | | |
Construction in Process
|
| | | | | | | 567,000 | | | | | | — | | |
| | | | | | | $ | 2,471,000 | | | | | $ | 2,287,000 | | |
Less Accumulated Depreciation and Amortization
|
| | | | | | | (290,000) | | | | | | (199,000) | | |
Total
|
| | | | | | $ | 2,181,000 | | | | | $ | 2,088,000 | | |
| | |
Successor
|
| |||||||||
| | |
As of
December 31, 2019 |
| |
As of
December 31, 2018 |
| ||||||
Accrued Distribution to Members
|
| | | $ | 1,709,000 | | | | | $ | 6,288,000 | | |
Third-Party Overpayments
|
| | | | 8,263,000 | | | | | | 6,477,000 | | |
Customer Deposits
|
| | | | 1,415,000 | | | | | | 2,100,000 | | |
Payroll Liabilities
|
| | | | 2,846,000 | | | | | | 1,329,000 | | |
Sales and Use Tax Payable
|
| | | | 1,693,000 | | | | | | 526,000 | | |
Other Accrued Liabilities
|
| | | | 3,601,000 | | | | | | 1,329,000 | | |
Total
|
| | | $ | 19,527,000 | | | | | $ | 18,049,000 | | |
|
Years Ending December 31,
|
| | | | | | |
2020
|
| | | $ | 1,660,000 | | |
2021
|
| | | | 1,660,000 | | |
2022
|
| | | | 1,660,000 | | |
2023
|
| | | | 1,660,000 | | |
2024
|
| | | | 157,490,000 | | |
| | | | $ | 164,130,000 | | |
Years Ending December 31,
|
| | | | | | |
2020
|
| | | $ | 1,010,000 | | |
2021
|
| | | | 914,000 | | |
2022
|
| | | | 715,000 | | |
2023
|
| | | | 480,000 | | |
2024
|
| | | | 325,000 | | |
| | | | $ | 3,444,000 | | |
|
Cash
|
| | | $ | 114,801,000 | | |
|
Equity Rollover
|
| | | | 26,000,000 | | |
|
Contingent Consideration
|
| | | | 19,690,000 | | |
|
Escrow
|
| | | | 16,000,000 | | |
|
Seller’s Fees
|
| | | | 2,199,000 | | |
| | | | | $ | 178,690,000 | | |
| | |
Solara Medical
Supplies, Inc. |
| |
J.M.R.
|
| |
Huey
|
| |
Pal-Med
|
| |
Total
|
| |||||||||||||||
Assets Acquired: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | — | | | | | $ | — | | | | | $ | 10,000 | | | | | $ | 176,000 | | | | | $ | 186,000 | | |
Accounts Receivable
|
| | | | 12,028,000 | | | | | | — | | | | | | 14,000 | | | | | | 298,000 | | | | | | 12,340,000 | | |
Inventories
|
| | | | 1,991,000 | | | | | | — | | | | | | — | | | | | | 176,000 | | | | | | 2,167,000 | | |
Prepaid Expenses and Other
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets
|
| | | | 726,000 | | | | | | — | | | | | | 2,000 | | | | | | 101,000 | | | | | | 829,000 | | |
Property and Equipment
|
| | | | 1,164,000 | | | | | | — | | | | | | 3,000 | | | | | | 30,000 | | | | | | 1,197,000 | | |
Goodwill
|
| | | | 109,153,000 | | | | | | 195,000 | | | | | | 367,000 | | | | | | 1,209,000 | | | | | | 110,924,000 | | |
Intangible Assets
|
| | | | 65,099,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 65,099,000 | | |
Other Assets
|
| | | | 1,406,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,406,000 | | |
Total Assets Acquired
|
| | | $ | 191,567,000 | | | | | $ | 195,000 | | | | | $ | 396,000 | | | | | $ | 1,990,000 | | | | | $ | 194,148,000 | | |
Liabilities Assumed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts Payable
|
| | | | (4,156,000) | | | | | | — | | | | | | (2,000) | | | | | | (50,000) | | | | | | (4,208,000) | | |
Accrued Expenses and Other
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities
|
| | | | (8,721,000) | | | | | | — | | | | | | (49,000) | | | | | | (90,000) | | | | | | (8,860,000) | | |
Total Liabilities Assumed
|
| | | $ | (12,877,000) | | | | | $ | — | | | | | $ | (51,000) | | | | | $ | (140,000) | | | | | $ | (13,068,000) | | |
Total Net Assets Acquired
|
| | | $ | 178,690,000 | | | | | $ | 195,000 | | | | | $ | 345,000 | | | | | $ | 1,850,000 | | | | | $ | 181,080,000 | | |
| | |
Gross Carrying Amount
|
| |||
Successor Balance at June 1, 2018
|
| | | $ | 109,153,000 | | |
Acquired Goodwill During the Period
|
| | | | 1,771,000 | | |
Successor Balance at December 31, 2018
|
| | | $ | 110,924,000 | | |
Measurement Period Adjustment
|
| | | | (569,000) | | |
Successor Balance at December 31, 2019
|
| | | $ | 110,355,000 | | |
|
| | |
Payor Contracts
|
| |
Trademarks
|
| |
Leasehold Interest
|
| |
Domain Name
|
| ||||||||||||
Successor Balance at June 1, 2018
|
| | | $ | 46,010,000 | | | | | $ | 19,000,000 | | | | | $ | 89,000 | | | | | $ | — | | |
Amortization Expense
|
| | | | (2,685,000) | | | | | | (1,108,000) | | | | | | (10,000) | | | | | | — | | |
Successor Balance at December 31, 2018
|
| | | $ | 43,325,000 | | | | | $ | 17,892,000 | | | | | $ | 79,000 | | | | | $ | — | | |
Purchase of Intangible Asset
|
| | | | — | | | | | | — | | | | | | — | | | | | | 25,000 | | |
Decrease
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Amortization Expense
|
| | | | (4,601,000) | | | | | | (1,900,000) | | | | | | (18,000) | | | | | | (1,000) | | |
Successor Balance at December 31, 2019
|
| | | $ | 38,724,000 | | | | | $ | 15,992,000 | | | | | $ | 61,000 | | | | | $ | 24,000 | | |
Year Ending December 31,
|
| | | | | | |
2020
|
| | | $ | 6,520,000 | | |
2021
|
| | | | 6,520,000 | | |
2022
|
| | | | 6,520,000 | | |
2023
|
| | | | 6,520,000 | | |
2024
|
| | | | 6,520,000 | | |
Thereafter
|
| | | | 22,201,000 | | |
| | | | $ | 54,801,000 | | |
|
SEC registration fee
|
| | | $ | 16,349 | | |
|
FINRA filing fee
|
| | | | 19,393 | | |
|
Printing
|
| | | | 60,000 | | |
|
Accounting fees and expenses
|
| | | | 400,000 | | |
|
Legal fees and expenses
|
| | | | 750,000 | | |
|
Transfer agent and registrar fees and expenses
|
| | | | 4,500 | | |
|
Miscellaneous
|
| | | | 149,758 | | |
|
Total
|
| | | $ | 1,400,000 | | |
| | | |
Signature
|
| |
Title
|
| |
Date
|
|
| By: | | |
/s/ Luke McGee
Luke McGee
|
| | Chief Executive Officer and Director (Principal Executive Officer) | | | June 29, 2020 | |
| By: | | |
/s/ Gregg Holst
Gregg Holst
|
| | Chief Financial Officer (Principal Financial and Accounting Officer) | | | June 29, 2020 | |
| By: | | |
/s/ Richard Barasch
Richard Barasch
|
| | Chairman of the Board | | | June 29, 2020 | |
| By: | | |
/s/ Joshua Parnes
Joshua Parnes
|
| | President and Director | | | June 29, 2020 | |
| By: | | |
/s/ Alan Quasha
Alan Quasha
|
| | Director | | | June 29, 2020 | |
| By: | | |
/s/ Terence Connors
Terence Connors
|
| | Director | | | June 29, 2020 | |
| | | |
Signature
|
| |
Title
|
| |
Date
|
|
| By: | | |
/s/ Dr. Susan Weaver
Dr. Susan Weaver
|
| | Director | | | June 29, 2020 | |
| By: | | |
/s/ Dale Wolf
Dale Wolf
|
| | Director | | | June 29, 2020 | |