UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
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Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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For the quarterly period ended December 31, 2005 |
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or |
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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Commission file number: 1-32203 |
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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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400 Corporate Pointe, Suite 525 |
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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 ý No o
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 o Non-accelerated filer ý
The number of shares of the issuer’s Common Stock, par value $0.01 per share, outstanding as of February 6, 2006, was 6,878,628
PROSPECT MEDICAL HOLDINGS, INC.
Index
2
PART I - FINANCIAL INFORMATION
PROSPECT MEDICAL HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
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December 31, |
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September 30 |
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(Unaudited) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
13,418,765 |
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$ |
16,949,304 |
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Investments, primarily restricted certificates of deposit |
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1,129,653 |
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1,100,000 |
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Risk pool receivables |
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3,773 |
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57,267 |
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Other receivables, net of allowances of $874,000 and $802,000 at December 31, 2005 and September 30, 2005 |
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993,299 |
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1,940,536 |
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Notes receivable, current portion |
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58,216 |
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52,160 |
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Prepaid expenses and other |
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407,143 |
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646,932 |
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Deferred income taxes, net |
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1,607,953 |
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1,904,137 |
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Total current assets |
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$ |
17,618,802 |
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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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804,956 |
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726,973 |
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Equipment |
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3,279,244 |
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3,342,385 |
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Furniture and fixtures |
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557,362 |
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546,523 |
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4,682,182 |
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4,656,501 |
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Less accumulated depreciation and amortization |
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(3,582,231 |
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(3,454,282 |
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Property, improvements and equipment, net |
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1,099,951 |
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1,202,219 |
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Notes receivable, long term portion |
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563,711 |
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572,979 |
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Deposits |
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500,007 |
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583,226 |
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Goodwill |
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38,623,321 |
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31,404,328 |
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Other intangible assets, net |
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1,993,346 |
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1,317,614 |
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Total assets |
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$ |
60,399,138 |
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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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$ |
12,262,202 |
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$ |
11,532,328 |
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Accounts payable and other accrued liabilities |
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6,577,349 |
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9,799,968 |
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Current maturities of long-term debt |
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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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21,639,551 |
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23,332,296 |
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Long-term debt, less current maturities |
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8,800,000 |
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6,166,667 |
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Deferred income taxes |
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1,000,180 |
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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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31,624,731 |
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30,729,659 |
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Minority interest |
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67,003 |
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65,405 |
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Shareholders’ equity: |
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