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Previous: INSIGHT HEALTH SERVICES CORP, 8-K/A, EX-99.1(A), 2000-08-14 |
Next: UGLY DUCKLING CORP, 10-Q, 2000-08-14 |
<PAGE>
Exhibit 99.1 (b)
(b) (I) PRO FORMA FINANCIAL INFORMATION
INSIGHT HEALTH SERVICES CORP. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
MARCH 31, 2000
(Amounts in thousands)
<TABLE>
<CAPTION>
WILKES-BARRE PRO
HISTORICAL HISTORICAL ACQUISITION FORMA
INSIGHT WILKES-BARRE ADJUSTMENTS COMBINED
---------- ------------ ------------ --------
<S> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 13,968 $ 423 $ (423)(1) $ 13,968
Trade accounts receivables, net 44,234 2,023 (2,023)(1) 44,234
Other current assets 7,968 56 -- 8,024
--------- --------- --------- ---------
Total current assets 66,170 2,502 (2,446) 66,226
Property and equipment, net 138,494 5,859 (347)(1) 144,006
Investments in partnerships 1,505 -- -- 1,505
Other assets 7,838 -- -- 7,838
Intangible assets, net 83,256 -- 12,043(1) 95,299
--------- --------- --------- ---------
$ 297,263 $ 8,361 $ 9,250 $ 314,874
--------- --------- --------- ---------
--------- --------- --------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of equipment, capital leases and other notes $ 21,764 $ 757 $ 1,797(1) $ 24,318
Accounts payable and other accrued expenses 21,955 708 (702)(1) 21,961
--------- --------- --------- ---------
Total current liabilities 43,719 1,465 1,095 46,279
Equipment, capital leases and other notes, less current portion 203,590 5,059 9,992(1) 218,641
Other long-term liabilities 1,047 -- -- 1,047
Stockholders' equity (deficit) 48,907 1,837 (1,837)(1) 48,907
--------- --------- --------- ---------
$ 297,263 $ 8,361 $ 9,250 $ 314,874
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
The pro forma condensed combined balance sheet as of March 31, 2000 reflects the
following pro forma adjustments:
(1) To record the acquisition of assets of Wilkes-Barre for $17,610 and the
resulting goodwill of $12,043.
The above reflects the acquisition of Wilkes-Barre by InSight using the purchase
method of accounting. Under the principles of purchase accounting, the assets
and liabilities of Wilkes-Barre are stated at fair market value (FMV). The
excess purchase price is allocated to goodwill.
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<PAGE>
(b) (ii)
INSIGHT HEALTH SERVICES CORP. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED JUNE 30, 1999
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
WILKES-BARRE PRO
HISTORICAL HISTORICAL ACQUISITION FORMA
INSIGHT WILKES-BARRE ADJUSTMENTS COMBINED
------- ------------ ----------- --------
<S> <C> <C> <C> <C>
Revenues $ 161,992 $ 6,349 $ - $ 168,341
Costs of operations:
Costs of services 85,317 2,990 (107)(3) 88,200
Provision for doubtful accounts 2,618 237 - 2,855
Equipment leases 18,522 - - 18,522
Depreciation and amortization 24,468 521 591 (1) 25,213
- - (367) (2) -
-------- ------ ----- -------
Total costs of operations 130,925 3,748 117 134,790
-------- ------ ----- -------
Gross profit 31,067 2,601 (117) 33,551
Corporate operating expenses 10,893 - - 10,893
Provision for reorganization and other costs 3,300 - - 3,300
-------- ------ ----- --------
Income from company operations 16,874 2,601 (117) 19,358
Equity in earnings of unconsolidated partnerships 548 - - 548
-------- ------ ----- -------
Operating income 17,422 2,601 (117) 19,906
Interest expense, net 14,500 336 1,088 (4) 15,924
-------- ------ ------ -------
Income before income taxes 2,922 2,265 (1,205) 3,982
Provision (benefit) for income taxes (3,190) - 170 (5) (3,020)
-------- ------ ------ -------
Net income $ 6,112 $ 2,265 $ (1,375) $ 7,002
-------- ------ --------- -------
-------- ------ --------- -------
Income per common and converted preferred share:
Basic $ 0.67 $ 0.76
-------- -------
-------- -------
Diluted $ 0.65 $ 0.75
-------- -------
-------- -------
Weighted average number of common and preferred
shares outstanding:
Basic 9,158 9,158
-------- -------
-------- -------
Diluted 9,376 9,376
-------- -------
-------- -------
</TABLE>
The pro forma combined condensed statement of income for the year ended June 30,
1999 reflects the following pro forma adjustments:
(1) To record amortization of goodwill over 20 years.
(2) To record depreciation expense on the estimated fair market value of assets
acquired.
(3) To reverse management fees charged by USD of $413 and record management
fees charged by InSight of $306.
(4) To record interest expense for acquisition financing.
(5) To record the tax effect on the above entries at estimated effective rates.
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<PAGE>
(b) (iii)
INSIGHT HEALTH SERVICES CORP. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED MARCH 31, 2000
(Amounts in thousands, except per share data)
<TABLE>
<CAPTION>
WILKES-BARRE PRO
HISTORICAL HISTORICAL ACQUISITION FORMA
INSIGHT WILKES-BARRE ADJUSTMENTS COMBINED
------- ------------ ----------- --------
<S> <C> <C> <C> <C>
Revenues $139,977 $ 6,554 $ -- $146,531
Costs of operations:
Costs of services 75,663 2,863 (122)(3) 78,404
Provision for doubtful accounts 2,109 262 -- 2,371
Equipment leases 11,297 -- -- 11,297
Depreciation and amortization 24,256 726 444 25,151
-- -- (275)(2) --
-------- -------- -------- --------
Total costs of operations 113,325 3,851 47 117,223
-------- -------- -------- --------
Gross profit 26,652 2,703 (47) 29,308
Corporate operating expenses 8,215 -- -- 8,215
-------- -------- -------- --------
Income from company operations 18,437 2,703 (47) 21,093
Equity in earnings of unconsolidated partnerships 624 -- -- 624
-------- -------- -------- --------
Operating income 19,061 2,703 (47) 21,717
Interest expense, net 13,548 478 622(4) 14,648
-------- -------- -------- --------
Income before income taxes 5,513 2,225 (669) 7,069
Provision for income taxes 881 -- 249(5) 1,130
-------- -------- -------- --------
Net income $ 4,632 $ 2,225 $ (918) $ 5,939
-------- -------- -------- --------
-------- -------- -------- --------
Income per common and converted preferred share:
Basic $ 0.50 $ 0.64
-------- --------
-------- --------
Diluted $ 0.49 $ 0.63
-------- --------
-------- --------
Weighted average number of common and preferred shares outstanding:
Basic 9,245 9,245
-------- --------
-------- --------
Diluted 9,383 9,383
-------- --------
-------- --------
</TABLE>
The pro forma combined condensed statement of income for the nine months ended
March 31, 2000 reflects the following pro forma adjustments:
(1) To record amortization of goodwill over 20 years.
(2) To record depreciation expense on the estimated fair market value of assets
acquired.
(3) To reverse management fees charged by USD of $436 and record management
fees charged by InSight of $315.
(4) To record interest expense for acquisition financing.
(5) To record the tax effect on the above entries at estimated effective rates.
23
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