UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2006
or
¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission file number: 1-32203
Prospect Medical Holdings, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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33-0564370 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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incorporation or organization) |
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Identification No.) |
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400 Corporate Pointe, Suite 525 |
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Culver City, California |
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90230 |
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(Address of principal executive offices) |
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(Zip Code) |
(310) 338-8677
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o Accelerated filer ¨ Non-accelerated filer x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):
Yes ¨ No ý
The number of shares of the issuer’s Common Stock, par value $0.01 per share, outstanding as of August 8, 2006 was 7,055,127.
PROSPECT MEDICAL HOLDINGS, INC.
Index
2
PART I - FINANCIAL INFORMATION
PROSPECT MEDICAL HOLDINGS, INC.
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June 30, |
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September 30 |
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(Unaudited) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
14,875,591 |
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$ |
16,949,304 |
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Investments, primarily restricted certificates of deposit |
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835,153 |
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1,100,000 |
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Risk pool receivables |
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792,387 |
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57,267 |
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Other
receivables, net of allowances of $667,000 and $802,000 at June 30, 2006 and |
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813,832 |
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1,940,536 |
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Notes receivable, current portion |
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175,633 |
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52,160 |
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Prepaid expenses and other |
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589,954 |
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646,932 |
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Refundable income taxes |
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1,848,293 |
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— |
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Deferred income taxes, net |
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1,787,382 |
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1,904,137 |
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Total current assets |
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21,718,225 |
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22,650,336 |
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Property, improvements and equipment: |
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Land |
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40,620 |
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40,620 |
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Leasehold improvements |
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1,126,113 |
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726,973 |
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Equipment |
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3,387,946 |
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3,342,385 |
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Furniture and fixtures |
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559,453 |
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546,523 |
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5,114,132 |
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4,656,501 |
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Less accumulated depreciation and amortization |
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(3,848,381 |
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(3,454,282 |
) |
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Property, improvements and equipment, net |
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1,265,751 |
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1,202,219 |
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Notes receivable, long term portion |
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423,198 |
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572,979 |
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Deposits |
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654,239 |
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583,226 |
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Goodwill |
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38,623,322 |
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31,404,328 |
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Other intangible assets, net |
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1,523,495 |
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1,317,614 |
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Total assets |
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$ |
64,208,230 |
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$ |
57,730,702 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accrued medical claims and other health care costs payable |
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$ |
11,318,000 |
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$ |
11,532,328 |
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Accounts payable and other accrued liabilities |
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9,351,645 |
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9,799,968 |
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Current maturities of long-term debt and capital leases |
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2,800,000 |
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2,000,000 |
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Total current liabilities |
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23,469,645 |
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23,332,296 |
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Long-term debt, less current maturities |
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7,400,000 |
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6,166,667 |
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Deferred income taxes |
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1,113,442 |
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1,045,696 |
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Other long-term liabilities |
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185,000 |
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185,000 |
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Total liabilities |
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32,168,087 |
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30,729,659 |
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Minority interest |
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80,021 |
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65,405 |
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Shareholders’ equity: |
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Common stock, $0.01 par value; 40,000,000 shares authorized 7,046,128 and 6,640,362 shares issued and outstanding at June 30, 2006 and September 30, 2005 |
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70,462 |
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66,403 |
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