| CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY |
NOTE 18 — CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY
Surgical Care Affiliates has no material assets or standalone operations other than its ownership in SCA and its subsidiaries.
There are significant restrictions on the Surgical Care Affiliates’ ability to obtain funds from any of its subsidiaries through dividends, loans or advances. Accordingly, these condensed financial statements have been presented on a “Parent-only” basis. Under a Parent-only presentation, the Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting. These Parent-only financial statements should be read in conjunction with the Company’s Consolidated Financial Statements.
The following tables present the financial position of Surgical Care Affiliates as of December 31, 2014 and 2013 and the results of its operations and cash flows for the years-ended December 31, 2014, 2013 and 2012.
Surgical Care Affiliates, Inc.
Condensed Balance Sheets
(In thousands of U.S. dollars)
|
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
|
|
|
2014 |
|
|
2013 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
162 |
|
|
$ |
16,193 |
|
|
Investment in SCA |
|
|
243,339 |
|
|
|
205,686 |
|
|
Total assets |
|
$ |
243,501 |
|
|
$ |
221,879 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Due to SCA |
|
$ |
162 |
|
|
$ |
16,193 |
|
|
Total liabilities |
|
|
162 |
|
|
|
16,193 |
|
|
Equity |
|
|
|
|
|
|
|
|
|
Common stock |
|
|
386 |
|
|
|
382 |
|
|
Additional paid in capital |
|
|
419,088 |
|
|
|
413,419 |
|
|
Contributed capital |
|
|
— |
|
|
|
— |
|
|
Accumulated deficit |
|
|
(176,135 |
) |
|
|
(208,115 |
) |
|
Total equity |
|
|
243,339 |
|
|
|
205,686 |
|
|
Total liabilities and equity |
|
$ |
243,501 |
|
|
$ |
221,879 |
|
Surgical Care Affiliates, Inc.
Condensed Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share data)
|
|
|
YEAR-ENDED |
|
|
YEAR-ENDED |
|
|
YEAR-ENDED |
|
|
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
|
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Equity in net income (loss) of SCA |
|
$ |
36,137 |
|
|
$ |
(48,620 |
) |
|
$ |
(18,291 |
) |
|
Stock compensation expense |
|
|
4,126 |
|
|
|
2,724 |
|
|
|
1,719 |
|
|
Other expenses |
|
|
31 |
|
|
|
- |
|
|
|
- |
|
|
Income (loss) before income taxes |
|
|
31,980 |
|
|
|
(51,344 |
) |
|
|
(20,010 |
) |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net income (loss) |
|
|
31,980 |
|
|
|
(51,344 |
) |
|
|
(20,010 |
) |
|
Equity in comprehensive income of SCA |
|
|
— |
|
|
|
8,327 |
|
|
|
986 |
|
|
Comprehensive income (loss) |
|
$ |
31,980 |
|
|
$ |
(43,017 |
) |
|
$ |
(19,024 |
) |
|
Basic net income (loss) per share |
|
$ |
0.83 |
|
|
$ |
(1.62 |
) |
|
$ |
(0.66 |
) |
|
Basic average shares outstanding |
|
|
38,477 |
|
|
|
31,688 |
|
|
|
30,340 |
|
|
Diluted net income (loss) per share |
|
$ |
0.80 |
|
|
$ |
(1.62 |
) |
|
$ |
(0.66 |
) |
|
Diluted average shares outstanding |
|
|
39,958 |
|
|
|
31,688 |
|
|
|
30,340 |
|
Surgical Care Affiliates, Inc.
Condensed Statements of Cash Flows
(In thousands of U.S. dollars)
|
|
|
YEAR-ENDED |
|
|
YEAR-ENDED |
|
|
YEAR-ENDED |
|
|
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
|
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Net income (loss) |
|
$ |
31,980 |
|
|
$ |
(51,344 |
) |
|
$ |
(20,010 |
) |
|
Adjustment to reconcile net loss to net cash from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net (income) loss of SCA |
|
|
(36,137 |
) |
|
|
48,620 |
|
|
|
18,291 |
|
|
Stock compensation expense |
|
|
4,126 |
|
|
|
2,724 |
|
|
|
1,719 |
|
|
Net cash from operating activities |
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in SCA |
|
|
(16,000 |
) |
|
|
(160,793 |
) |
|
|
— |
|
|
Distributions from SCA |
|
|
— |
|
|
|
74,900 |
|
|
|
— |
|
|
Net cash used in investing activities |
|
|
(16,000 |
) |
|
|
(85,893 |
) |
|
|
— |
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Member contributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Proceeds from issuance of shares pursuant to IPO |
|
|
— |
|
|
|
176,786 |
|
|
|
— |
|
|
Distributions to unitholders |
|
|
— |
|
|
|
(74,900 |
) |
|
|
— |
|
|
Net cash provided by financing activities |
|
|
— |
|
|
|
101,886 |
|
|
|
— |
|
|
Net change in cash and cash equivalents |
|
|
(16,031 |
) |
|
|
15,993 |
|
|
|
— |
|
|
Cash and cash equivalents at beginning of period |
|
|
16,193 |
|
|
|
200 |
|
|
|
200 |
|
|
Cash and cash equivalents at end of period |
|
$ |
162 |
|
|
$ |
16,193 |
|
|
$ |
200 |
|
|
Supplemental schedule of noncash investing and financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
IPO fees paid by SCA |
|
|
— |
|
|
$ |
4,909 |
|
|
$ |
— |
|
|