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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 26, 2000 (May 3, 2000)
IASIS HEALTHCARE CORPORATION
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 333-94521 76-0450619
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(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
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113 Seaboard Lane, Suite A-200
Nashville, Tennessee 37067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615) 844-2747
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events
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Iasis Healthcare Corporation issued a press release on May 3, 2000
announcing its earnings for the second quarter and six months ended
March 31, 2000. For information regarding the earnings, reference is
made to the press release dated May 3, 2000, which is attached hereto as
Exhibit 99.1 and incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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99.1 Press Release dated May 3, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
IASIS HEALTHCARE CORPORATION
Date: May 26, 2000 By: /s/ John K. Crawford
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John K. Crawford
Executive Vice President and Chief
Financial Officer
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EXHIBIT INDEX
No. Exhibit
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99.1 May 3, 2000 Press Release
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[IASIS HEALTHCARE LOGO]
DOVER CENTER, 113 SEABOARD LANE, SUITE A200, FRANKLIN, TENNESSEE 37067
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PHONE: (615) 844-2747 - FAX: (615) 846-3006 - WWW.IASISHEALTHCARE.COM
FOR IMMEDIATE RELEASE
CONTACT: WAYNE GOWER
PRESIDENT AND CHIEF EXECUTIVE OFFICER
OR
JOHN K. CRAWFORD
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
(615) 844-2747
IASIS HEALTHCARE CORPORATION ANNOUNCES
SECOND QUARTER AND SIX MONTHS RESULTS
FRANKLIN, Tennessee (May 3, 2000) - IASIS Healthcare Corporation
announced today financial results for the second quarter and six months ended
March 31, 2000. The results for the second quarter and six months ended March
31, 2000, include the contribution of ten acute care hospitals and other related
facilities and assets acquired from Tenet Healthcare and a management company on
October 15, 1999.
Net operating revenues for the second quarter of 2000 totaled $223.7
million compared with $47.8 million in the same quarter of last year. Earnings
before interest, depreciation, amortization, income taxes, minority interest and
recapitalization costs (EBITDA) for the second quarter increased from $7.1
million in 1999 to $35.4 million in 2000. Net earnings, before preferred stock
dividends and accretion, for the quarter was $6.2 million. On April 10, 2000,
IASIS opened the Rocky Mountain Medical Center (RMMC) in Salt Lake City, Utah.
RMMC is a full service, acute care hospital with 120 licensed and 118
operational beds. During the second quarter of 2000, IASIS incurred start-up
EBITDA losses of $1.9 million at RMMC.
Net operating revenues for the six months ended March 31, 2000, were
$403.0 million compared with $93.2 million for the same period of last year.
EBITDA totaled $61.8 million compared with $13.9 million for the same period in
1999. Net earnings, before preferred stock dividends and accretion, for the six
months ended March 31, 2000, was $4.5 million.
On a pro forma basis, which assumes that the acquisition of the Tenet
hospitals and the management company was effective as of the beginning of each
period, net operating revenues for the acute care services segment for the six
months ended March 31, 2000, increased 10.9% to $380.5 million compared with
$343.1 million in the same prior year period. Acute care services' EBITDA for
the six months ended March 31, 2000, excluding RMMC EBITDA losses, was $63.0
million compared with
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IASIS Healthcare Announces Second Quarter Results
Page 2
May 3, 2000
$60.6 million for the same period in 1999. Pro forma net operating revenues for
the Company's health insurance business segment, Health Choice, for the six
months ended March 31, 2000, increased 13.2% to $45.4 million compared with
$40.1 million in the same prior year period. Health Choice EBITDA for the six
months ended March 31, 2000, was $1.7 million compared with $1.9 million for the
same period in 1999.
Hospital admissions and adjusted admissions for the quarter and six
months ended March 31, 2000, on a pro forma combined basis, each increased 5.5%
and 7.3%, respectively, over 1999.
In commenting on the second quarter results, Wayne Gower, president and
chief executive officer of IASIS Healthcare, said, "We have been intensely
focused on integrating our hospitals and related healthcare businesses during
the past six months, while, at the same time, adding key and talented healthcare
professionals to our team. We are pleased with our progress in shaping IASIS and
executing our business strategies. We continue to pursue opportunities to
enhance the quality of care we provide to our patients and the support we
provide to their physicians. We are encouraged with the growth we have
experienced and the demand for our services, and we are positioning our
facilities in each market to develop new services to respond to the needs of our
communities. Our opening of Rocky Mountain Medical Center in Salt Lake City is a
demonstration of our commitment to deliver value to our customers and our
stakeholders."
On April 18, 2000, IASIS commenced an offer to exchange all of its
outstanding 13% Senior Subordinated Notes due 2009 for 13% Senior Subordinated
Exchange Notes due 2009 that have been registered under the Securities Act of
1933, as amended. The exchange offer will expire on May 12, 2000, unless
extended by IASIS.
IASIS Healthcare Corporation owns and operates 15 general, acute care
hospitals with a total of 2,262 operating beds. IASIS focuses on networks of
medium-sized hospitals, each with 100 to 400 beds. The Company currently
operates hospitals in Salt Lake City, Utah; Phoenix, Arizona; Tampa-St.
Petersburg, Florida; and three markets within the State of Texas. IASIS also
operates four ambulatory surgery centers and a Medicaid managed health plan
serving over 37,000 members in Arizona.
This press release contains forward-looking statements based on
management's current expectations. Forward-looking statements involve known and
unknown risks and uncertainties that may cause the Company's actual results in
future periods to differ materially from those anticipated in the
forward-looking statements. Those risks and uncertainties include, among others,
risks and uncertainties associated with general economic and business
conditions, the effect of existing and future governmental regulations,
including the Balanced Budget Act of 1997 and the Balanced Budget Refinement
Act, changes in Medicare and Medicaid reimbursement levels, the highly
competitive nature of the healthcare industry, the possible enactment of Federal
or state healthcare reform, the ability to attract and retain qualified
management and personnel - including physicians, the ability to enter into
managed care provider arrangements on acceptable terms, the ability to implement
successfully the Company's acquisition and development strategy and to obtain
financing therefore, and those risks, uncertainties and others matters detailed
from time to time in the Company's filings with the Securities and Exchange
Commission.
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IASIS Healthcare Announces Second Quarter Results
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May 3, 2000
IASIS HEALTHCARE CORPORATION
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS)
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THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
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2000 1999 2000 1999
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Net operating revenue $ 223,742 $47,826 $ 403,032 $93,216
Total operating expenses 199,473 43,866 362,751 85,646
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Earnings from operations before
minority interests and income taxes 24,269 3,960 40,281 7,570
Interest expense, net, minority interests
and recapitalization costs 15,240 2,399 32,965 6,075
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Earnings before income taxes 9,029 1,561 7,316 1,495
Provision for income taxes 2,853 -- 2,853 --
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Net earnings 6,176 1,561 4,463 1,495
Preferred stock dividends and accretion 6,628 -- 12,148 --
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Net earnings (loss) attributable
to common shareholders $ (452) $ 1,561 $ (7,685) $ 1,495
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