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Previous: CRESCENT CAPITAL INC / DE, 10QSB, 1996-05-21 |
Next: GENESIS HEALTH VENTURES INC /PA, 8-K/A, 1996-05-21 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
FORM 8-K/A
NUMBER 3
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
-----------------------------------
Date of Report (Date of earliest event reported): November 30, 1995
GENESIS HEALTH VENTURES, INC.
------- ------ --------- ----
(Exact name of Registrant as specified in its charter)
Pennsylvania 1-11666 06-1132947
- ------------------------------- ------------------------ ----------------------
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification Number)
148 West State Street
Kennett Square, Pennsylvania 19348
----------------------------------
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (610) 444-6350
----- --------
<PAGE>
Item 7 is hereby amended as follows:
Item 7. Financial Statements and Exhibits.
(a) Financial Statements of businesses acquired.
* Consolidating Balance Sheet of McKerley Entities as of December
31, 1994.
* Consolidating Income Statement of McKerley Entities for the year
ended December 31, 1994.
* Financial Statements and Other Financial Information (Audited)
McKerley Health Care Centers, Inc. Years ended December 31, 1994
and 1993
* Financial Statements and Other Financial Information (Audited)
McKerley Health Facilities For the period from March 11, 1994
(date of initial occupancy) to December 31, 1994
* Financial Statements and Other Financial Information (Audited)
McKerley Health Care Center-Concord Limited Partnership Years
ended December 31, 1994 and 1993
* Financial Statements and Other Financial Information (Reviewed)
McKerley Pleasant View, Inc. Years ended December 31, 1994 and
1993
Consolidated Balance Sheet of McKerley Entities as of
November 30, 1995
Consolidated Income Statement of McKerley Entities for the
eleven months ended November 30, 1995
Consolidating Balance Sheet of McKerley Entities as of November
30, 1995
Consolidating Income Statement of McKerley Entities for the
eleven months ended November 30, 1995
Balance Sheet and Income Statement (Unaudited) McKerley Health
Care Centers, Inc. Eleven months ended November 30, 1995
Balance Sheet and Income Statement (Unaudited) McKerley Health
Facilities Eleven months ended November 30, 1995
Balance Sheet and Income Statement (Unaudited) McKerley Health
Care Center-Concord Limited Partnership Eleven months ended
November 30, 1995
* Balance Sheet and Income Statement (Unaudited) McKerley Pleasant
View, Inc. Eleven months ended November 30, 1995
<PAGE>
(b) Pro Forma Financial Information.
**Pro Forma Condensed Consolidated Income Statement for the year ended
September 30, 1995 and six months ended March 31, 1996
Pro Forma Condensed Consolidated Balance Sheet as of September 30,
1995
(c) Exhibits.
Number Title
*1. Purchase Agreement, dated August 18, 1995, by and among
Genesis Health Ventures, Inc., a Pennsylvania corporation,
Accumed, Inc., a New Hampshire corporation, McKerley Health
Care Centers, Inc., a New Hampshire corporation, McKerley
Health Care Center-Concord, Inc., a New Hampshire
corporation, McKerley Health Facilities, a New Hampshire
general partnership, McKerley Health Care Center-Concord,
L.P., Forrest McKerley, James McKerley, Matthew McKerley and
Charles Fanaras.
*2. Amendment Number One to Purchase Agreement, dated November
30, 1995.
*3. Escrow Agreement, dated November 30, 1995, by and among the
Principals, McKerley Health Care Centers, Inc. and Blank,
Rome, Comisky & McCauley.
*4. Press Release, dated December 5, 1995.
*5. Consents of Ernst & Young LLP.
- --------------------------
* Previously filed.
** Incorporated by reference to Amendment No. 1 to the Company's Current
Report on Form 8K dated April 21, 1996.
-2-
<PAGE>
McKERLEY ENTITIES
COMBINED
Consolidated Balance Sheet
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
November 30, November 30,
1995 1995
------------ ------------
<S> <C> <C> <C>
Assets Liabilities and stockholders' equity
Current assets:
Cash & cash equivalents 1,379,112 Current liabilities:
Investments 0 Accounts payable 1,085,822
Accounts receivable, net 4,837,079 Accrued wages and related amounts 2,493,718
Third party settlements receivable 0 Deferred patient revenues 664,313
Inventory 523,537 Other accrued expenses 4,730,106
Due from affiliates 0 State income taxes payable 36,093
Due from stockholder 0 Current portion of long term debt 732,286
Other current assets 647,865 Current portion of subordinated note (0)
----------- -----------
Total current assets 7,387,593 Total current liabilities 9,742,337
Property, plant and equipment 40,742,339 Long term debt less current portion 34,943,389
Less accumulated depreciation 9,192,407 Subordinated note less current portion (0)
----------- Deferred income taxes 62,000
Net PPE 31,549,931
Stockholders' equity
Restricted cash in escrow 981,023 Common stock 50,300
Deposits on leaseholds 1,480,000 Additional paid in capital 4,732,331
Due from stockholder 0 Retained earnings (3,145,212)
Net deferred costs 1,504,807 -----------
Due from affiliates (0) 1,637,419
----------- Less treasury stock held 3,481,790
Total stockholders' equity (1,844,371)
-----------
Total assets 42,903,356 Total liabilities and stockholders' equity 42,903,356
=========== ===========
</TABLE>
<PAGE>
McKERLEY ENTITIES
COMBINED
Consolidated Income Statement
- -------------------------------------------------------------------------------
Eleven Months Ended
November 30, 1995
---------------------
REVENUE:
Private 17,153,503
Medicare 3,283,830
Medicaid 30,202,269
VA 449,350
Pharmacy 0
Homecare 1,246,555
Management Fees 6,457
Other 132,682
---------------------
Total Net Revenues 52,474,647
OPERATING EXPENSES:
Nursing 18,171,220
Dietary 4,876,915
Household & property 6,325,734
Ancillary 2,973,544
General & administrative 14,262,216
Other expense 1,389,849
---------------------
Total Operating expenses 47,999,477
EBITDAR 4,475,170
Lease/Rent Expense 2,528,678
EBITDA 1,946,492
Depreciation & Amortization 1,742,375
EBIT 204,117
Net Interest 3,897,007
Pre-tax Income before Management Fee
& Related Party Rent Premium (3,692,891)
Mgt Fee & Related Party Rent Premium (0)
Pre-tax Income (3,692,891)
<PAGE>
McKERLEY ENTITIES
COMBINED
Consolidated Balance Sheet
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
November 30, 1995
---------------------------------------------------------------------------
McKerley McKerley McKerley McKerley
Health Care Health HCC- HCC-
Centers, Inc. Facilities Concord, Inc. Concord, L.P.
------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Assets
Current assets:
Cash & cash equivalents 135,002 797,453 0 446,658
Investments 0 0
Accounts receivable, net 4,837,079 0 0
Third party settlements receivable
Inventory 523,537 0
Due from affiliates 0 0
Due from stockholder 0
Other current assets 502,287 122,195 0 23,384
---------- ---------- ---------- ----------
Total current assets 5,997,904 919,647 0 470,042
Property, plant and equipment 14,950,481 16,180,205 0 9,611,654
Less accumulated depreciation 4,601,126 3,642,002 0 949,279
---------- ---------- ---------- ----------
Net PPE 10,349,354 12,538,203 0 8,662,374
Restricted cash in escrow 981,023 0
Deposits on leaseholds/Investmnt in LP 1,938,750 188 0
Due from stockholder 0 0
Net deferred costs 967,048 30,682 0 507,077
Due from affiliates 0 2,158,669 679
---------- ---------- ---------- ----------
Total assets 20,234,080 15,647,201 188 9,640,173
========== ========== ========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable 1,085,822 0 0
Accrued wages and related amounts 2,493,718 0
Deferred patient revenues 664,313
Other accrued expenses 3,996,888 665,592 0 67,625
State income taxes payable 36,093 0
Current portion of long term debt 694,579 0 0 37,707
Current portion of subordinated note 0
---------- ---------- ---------- ----------
Total current liabilities 8,971,413 665,592 0 105,332
Long term debt less current portion 12,390,759 13,560,555 0 8,992,076
SNLCP/Due to Affiliate 2,158,669 679
Deferred income taxes 0 62,000
Due to affiliates 0 0
Stockholders' equity
Common stock 50,300 0
Additional paid in capital 4,732,331 0
Retained earnings (4,587,601) 1,359,054 (491) 542,764
---------- ---------- ---------- ----------
195,030 1,359,054 (491) 542,764
Less treasury stock held (3,481,790)
---------- ---------- ---------- ----------
Total stockholders' equity (3,286,760) 1,359,054 (491) 542,764
---------- ---------- ---------- ----------
Total liabilities and stockholders' equity 20,234,080 15,647,201 188 9,640,173
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
McKerley
Eliminating Entries Consolidated
------------------------------------------------------ ------------
<S> <C> <C> <C> <C>
Assets
Current assets:
Cash & cash equivalents 1,379,112
Investments 0
Accounts receivable, net 4,837,079
Third party settlements receivable 0
Inventory 523,537
Due from affiliates 0
Due from stockholder 0
Other current assets 647,865
-----------
Total current assets 7,387,593
Property, plant and equipment 40,742,339
Less accumulated depreciation 9,192,407
-----------
Net PPE 31,549,931
Restricted cash in escrow 981,023
Deposits on leaseholds/Investmnt in LP (458,938) 1,480,000
Due from stockholder 0
Net deferred costs 1,504,807
Due from affiliates (2,158,66)a (679)a (0)
-----------
Total assets 42,903,356
===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable 1,085,822
Accrued wages and related amounts 2,493,718
Deferred patient revenues 664,313
Other accrued expenses 4,730,106
State income taxes payable 36,093
Current portion of long term debt 732,286
Current portion of subordinate 0
-----------
Total current liabilities 9,742,337
Long term debt less current portion 34,943,389
SNLCP/Due to Affiliate (2,158,669)a (679)a (0)
Deferred income taxes 62,000
Due to affiliates 0
Stockholders' equity
Common stock 50,300
Additional paid in capital 4,732,331
Retained earnings (458,938) (3,145,212)
-----------
1,637,419
Less treasury stock held (3,481,790)
-----------
Total stockholders' equity (1,844,371)
-----------
Total liabilities and stockholders' equity 42,903,356
===========
</TABLE>
a Entry to eliminate Due to/Due from Affiliate Balances
b Entry to eliminate Investment in McKerley HCC-Concord, LP
<PAGE>
McKERLEY ENTITIES
COMBINED
Consolidated Income Statement
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Unaudited Eleven Months Ended November 30, 1995
-------------------------------------------------------------------
McKerley McKerley McKerley McKerley
Health Care Health HCC- HCC-
Centers, Inc. Facilities Concord, Inc. Concord, L.P.
------------- ---------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Total Revenues 52,404,979 2,476,641 0 1,388,000 (38,590)a
Costs & Expenses:
Nursing services 18,171,220
Special services 4,515,001 0
Dietary 4,876,915 0
Household & property 12,362,774 0
Ancillary
Administrative & general 14,177,751 0
Other expense 169,027 11,850
Lease/rent expense
Depreciation & amortization 728,955 509,163 0 504,257
Interest 1,649,834 1,497,697 0 788,067 (38,590)a
Management fee & related party rent
---------- ---------- --------- ---------- ----------
Total costs & expenses 56,482,450 2,175,887 0 1,304,067
Pre-tax income (4,077,471) 300,754 0 83,826 0
</TABLE>
<TABLE>
<CAPTION>
McKerley
Consolidated
----------------------------------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues (1,388,000)b (2,415,849)c 47,466 d 52,474,647
Costs & Expenses:
Nursing services 0 d 18,171,220
Special services (4,515,001)d 0
Dietary 4,876,915
Household & property (1,388,000) b 25,759 c (2,415,849)c (2,258,950)d 6,325,734
Ancillary 2,973,544 d 2,973,544
Administrative & general 0 b 97,766 c 29,387 (42,689)d 14,262,215
Other expense (169,027)c 1,377,999 d 1,389,849
Lease/rent expense (11,850)b 11,850 b 2,528,678 d 2,528,678
Depreciation & amortization (504,257)b 504,257 (509,137)c 509,137 c 1,742,375
Interest 788,067 b 788,067 b (1,476,283)c 1,476,283 c 3,897,007
Management fee & related party rent (83,826)b 83,826 b (384,927)c 401,042 c (16,115)d 0
----------
Total costs & expenses 56,167,536
Pre-tax income 0 (0) 0 (0) (0) (3,692,889)
</TABLE>
a Entry to eliminate interest income/expense shareholder/partner notes payable/
receivable MHF/MPV
b Entry to reclassify & eliminate MHCC-CLP related party revenue & expenses
c Entry to reclassify & eliminate MHF related party revenue & expenses
d Entry to reclassify MHCC expenses
<PAGE>
McKERLEY HEALTH CARE CENTERS, INC.
BALANCE SHEET
<TABLE>
<CAPTION>
ASSETS November 30, 1995 LIABILITIES AND STOCKHOLDERS' EQUITY November 30, 1995
----------------- -----------------
<S> <C> <S> <C>
CURRENT ASSETS CURRENT LIABILITIES
CASH AND CASH EQUIVALENTS $ 135,001.87 ACCOUNTS PAYABLE $ 1,085,821.67
ACCOUNTS RECEIVABLE, LESS ALLOWANCE FOR ACCRUED SALARIES, WAGES AND RELATED AMOUNTS 2,493,718.01
DOUBTFUL ACCOUNTS of $54,179 IN 1995, RESIDENT DEPOSITS 664,312.65
1994, 1993,1992, AND 1991 4,837,078.59 OTHER ACCRUED EXPENSES 3,996,888.37
DUE FROM AFFILIATES 0.00 DUE TO THIRD PARTY PAYORS 0.00
INVENTORY OF SUPPLIES 523,536.99 INCOME TAXES PAYABLE 36,093.00
RECEIVABLE MEDICARE
RECEIVABLE STATE NH/VT
DUE FROM STOCKHOLDER-SHORT TERM 0.00 CURRENT PORTION OF LONG TERM DEBT 694,579.32
REFUNDABLE FEDERAL INCOME TAXES 0.00 CURRENT PORTION OF SUBORDINATED
PREPAID EXPENSES AND OTHER CURRENT ASSETS 502,286.59 NOTE OBLIGATION 0.00
-------------- -------------
TOTAL CURRENT ASSETS 5,997,904.04 TOTAL CURRENT LIABILITIES 8,971,413.02
PROPERTY, PLANT AND EQUIPMENT LONG TERM DEBT, LESS CURRENT PORTION 12,390,758.53
LAND AND IMPROVEMENTS 2,082,497.86
BUILDING AND IMPROVEMENTS 9,732,007.20 DEFERRED INCOME TAXES 0.00
EQUIPMENT, FURNITURE AND FIXTURES 3,135,975.46
-------------- SUBORDINATED NOTE OBLIGATION 0.00
14,950,480.52 DUE TO AFFILIATES 2,158,668.54
LESS ALLOWANCES FOR DEPRECIATION
AND AMORTIZATION 4,601,126.30 STOCKHOLDERS' EQUITY
-------------- COMMON STOCK, $10 PAR VALUE, 15,000 SHARES
10,349,354.22 AUTHORIZED, 5,000 SHARES ISSUED 50,300.00
ADDITIONAL PAID-IN CAPITAL 4,732,330.78
RETAINED EARNINGS (4,587,601.21)
-------------
OTHER ASSETS 195,029.57
RESTRICTED CASH IN ESCROW 981,023.49
DUE FROM STOCKHOLDER-LONG TERM 0.00
DEPOSITS ON LEASEHOLDS/INVESTMENT IN L.P. 1,938,750.00 LESS COST OF 825 SHARES OF COMMON STOCK
DEFERRED COSTS, NET OF AMORTIZATION 967,047.91 HELD IN TREASURY (3,481,790.00)
DUE FROM AFFILIATES 0.00 -------------
-------------- (3,286,760.43)
3,886,821.40 -------------
-------------- TOTAL LIABILITIES 20,234,079.66
TOTAL ASSETS 20,234,079.66 =============
==============
</TABLE>
<PAGE>
McKERLEY HEALTH CARE CENTERS, INC.
STATEMENT OF INCOME AND RETAINED EARNINGS
<TABLE>
<CAPTION>
Eleven Months Year Ended
11/30/95 12/31/94
-------- --------
<S> <C> <C>
PATIENT SERVICE REVENUES:
ROUTINE SERVICES $ 63,594,722.50 $ 63,582,449.58
SPECIAL SERVICES 5,735,519.86 3,781,138.54
----------------- -----------------
69,330,242.36 67,363,588.12
DEDUCTIONS FROM REVENUES 16,994,734.90 16,004,821.70
----------------- -----------------
NET PATIENT SERVICE REVENUE 52,335,507.46 51,358,766.42
OTHER REVENUES 69,471.34 41,905.42
----------------- -----------------
NET REVENUES 52,404,978.80 51,400,671.84
COSTS AND EXPENSES:
NURSING SERVICES 18,171,220.07 17,801,465.02
SPECIAL SERVICES 4,515,001.17 3,539,984.66
DIETARY 4,876,914.56 4,714,274.10
HOUSEHOLD AND PROPERTY 12,362,773.99 12,180,661.76
ADMINISTRATIVE AND GENERAL 14,177,751.16 10,492,275.93
DEPRECIATION AND AMORTIZATION 728,954.96 639,713.06
INTEREST 1,649,833.81 1,183,794.97
----------------- -----------------
TOTAL COSTS AND EXPENSES 56,482,449.72 50,552,169.50
----------------- -----------------
INCOME BEFORE INCOME TAXES (4,077,470.92) 848,502.34
PROVISION FOR INCOME TAXES (88,389.00) 21,551.00
----------------- -----------------
NET INCOME (LOSS) (3,989,081.92) 826,951.34
----------------- -----------------
RETAINED EARNINGS AT BEGINNING OF YEAR 6,048,162.65 5,221,211.31
----------------- -----------------
1/1/95 MPV, INC. MERGER INTO MHCC, INC (4,378,106.37)
NOVEMBER 1995 CLOSING ENTRIES (2,268,575.57)
RETAINED EARNINGS AT END OF YEAR (4,587,601.21) 6,048,162.65
================= =================
</TABLE>
<PAGE>
McKERLEY HEALTH FACILITIES
BALANCE SHEET
<TABLE>
<CAPTION>
November 30, 1995 December 31, 1994
----------------- -----------------
<S> <C> <C>
ASSETS
PROPERTY, PLANT AND EQUIPMENT
LAND $ 1,337,871.08 $ 1,395,037.90
BUILDINGS AND IMPROVEMENTS 12,613,783.98 12,037,315.27
EQUIPMENT 2,228,549.49 2,107,243.09
----------------- -----------------
16,180,204.55 15,539,596.26
LESS ACCUMULATED DEPRECIATION 3,642,001.64 3,426,595.72
----------------- -----------------
12,538,202.91 12,113,000.54
OTHER ASSETS
CASH & INVESTMENTS 797,452.55 576,352.55
DUE FROM AFFILIATES 2,158,668.54 1,824,814.49
NOTES RECEIVABLE FROM PARTNERS 0.00 807,251.67
OTHER NOTES RECEIVABLE 120,000.00 120,000.00
DEFERRED CHARGES, NET OF ACCUMULATED
AMORTIZATION 30,682.38 38,543.73
INVESTMENTS, AT COST, WHICH
APPROXIMATES MARKET VALUE 0.00 75,000.00
OTHER 1,093.71 222,751.05
STATE INCOME TAX RECEIVABLE 1,101.00 0.00
3,108,998.18 3,664,713.49
----------------- -----------------
15,647,201.09 15,777,714.03
================= =================
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
NOTE PAYABLE 0.00 0.00
LONG-TERM DEBT 13,560,554.86 13,626,945.88
ACCRUED EXPENSES 665,591.81 117,264.05
DEFERRED STATE INCOME TAXES PAYABLE 62,000.00 62,000.00
----------------- -----------------
14,288,146.67 13,806,209.93
PARTNERS' CAPITAL 1,359,054.42 1,971,504.10
----------------- -----------------
TOTAL LIABILITIES & PARTNER'S CAPITAL 15,647,201.09 15,777,714.03
================= =================
</TABLE>
<PAGE>
McKERLEY HEALTH FACILITIES
STATEMENTS OF OPERATIONS AND PARTNERS' CAPITAL
<TABLE>
<CAPTION>
Eleven Months
Ended Year Ended
11/30/95 12/31/94
------------- -------------
<S> <C> <C>
REVENUES:
RENTAL INCOME $2,415,848.53 $2,510,685.15
INTEREST INCOME 56,189.42 61,298.64
OTHER INCOME 4,603.27 20,710.58
------------- -------------
2,476,641.22 2,592,694.37
OPERATING EXPENSES:
INTEREST 1,497,697.09 1,417,051.67
DEPRECIATION AND AMORTIZATION 509,163.45 670,998.01
OTHER EXPENSES 169,026.68 45,747.23
------------- -------------
TOTAL OPERATING EXPENSES 2,175,887.22 2,133,796.91
------------- -------------
INCOME BEFORE INCOME TAXES 300,754.00 458,897.46
PROVISION FOR STATE INCOME TAXES:
CURRENT 27,497.00 21,000.00
DEFERRED 0.00 4,000.00
27,497.00 25,000.00
------------- -------------
NET INCOME 273,257.00 433,897.46
PARTNERS' CAPITAL AT BEGINNING OF YEAR 1,971,504.10 1,648,193.50
DISTRIBUTIONS TO PARTNERS (885,706.68) (110,586.86)
------------- -------------
PARTNERS' CAPITAL AT END OF YEAR 1,359,054.42 1,971,504.10
============= =============
</TABLE>
<PAGE>
BALANCE SHEET
McKERLEY HEALTH CARE CENTER-CONCORD, LIMITED PARTNERSHIP
<TABLE>
<CAPTION>
Eleven Months
Ended Year Ended
ASSETS 11/30/95 12/31/94
-------- --------
<S> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
LAND AND IMPROVEMENTS $ 1,053,519.44 967,339.58
BUILDINGS AND IMPROVEMENTS 7,508,394.61 7,469,329.61
EQUIPMENT 1,049,739.67 1,034,514.32
---------------- -------------
9,611,653.72 9,471,183.51
LESS ACCUMULATED DEPRECIATION 949,279.46 461,590.28
---------------- -------------
8,662,374.26 9,009,593.23
OTHER ASSETS
CASH 446,657.84 172,180.42
DUE FROM AFFILIATES 679.30 174,746.30
NOTES RECEIVABLE 0.00 0.00
OTHER NOTES RECEIVABLE 0.00 0.00
DEFERRED CHARGES, NET OF ACCUMULATED
AMORTIZATION 507,077.10 523,644.85
INVESTMENTS, AT COST, WHICH
APPROXIMATES MARKET VALUE 0.00 0.00
OTHER 23,384.16 25,711.83
STATE INCOME TAX RECEIVABLE 0.00 0.00
977,798.40 896,283.40
---------------- -------------
9,640,172.66 9,905,876.63
================ =============
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
DUE TO AFFILIATE 0.00 91,679.68
NOTE PAYABLE 0.00 226,183.00
LONG-TERM DEBT 9,029,782.95 9,061,273.28
ACCRUED EXPENSES 67,625.36 67,802.65
DEFERRED STATE INCOME TAXES PAYABLE 0.00 0.00
---------------- -------------
9,097,408.31 9,446,938.61
PARTNERS' CAPITAL 542,764.35 458,938.02
---------------- -------------
9,640,172.66 9,905,876.63
================ =============
</TABLE>
<PAGE>
STATEMENTS OF OPERATIONS AND PARTNERS' CAPITAL
McKERLEY HEALTH CARE CENTER-CONCORD, LIMITED PARTNERSHIP
<TABLE>
<CAPTION>
Eleven Months
Ended Year Ended
11/30/95 12/31/94
------------- -----------
<S> <C> <C>
REVENUES:
RENTAL INCOME $ 1,388,000.00 1,129,746.30
INTEREST INCOME 0.00 0.00
OTHER INCOME 0.00 0.00
-------------- -------------
1,388,000.00 1,129,746.30
OPERATING EXPENSES:
INTEREST & MIP 788,066.74 625,696.13
DEPRECIATION AND AMORTIZATION 504,256.93 456,962.54
OTHER EXPENSES 11,850.00 38,249.61
-------------- -------------
TOTAL OPERATING EXPENSES 1,304,173.67 1,120,908.28
-------------- -------------
INCOME BEFORE INCOME TAXES 83,826.33 8,838.02
PROVISION FOR STATE INCOME TAXES:
CURRENT 0.00 0.00
DEFERRED 0.00 0.00
-------------- -------------
0.00 0.00
-------------- -------------
NET INCOME 83,826.33 8,838.02
PARTNERS' CAPITAL AT BEGINNING OF YEAR 458,938.02 450,100.00
DISTRIBUTIONS TO PARTNERS 0.00 0.00
-------------- -------------
PARTNERS' CAPITAL AT END OF YEAR 542,764.35 458,938.02
============== =============
</TABLE>
<PAGE>
Pro Forma Condensed Consolidated Balance Sheet
(Unaudited)
The following unaudited pro forma condensed consolidated balance sheet includes
the historical consolidated condensed balance sheet of the Company at September
30, 1995 and the historical consolidated condensed balance sheet of McKerley at
November 30, 1995 and the pro forma adjustments to reflect the McKerley
Transaction as if it had occurred on September 30, 1995. The pro forma
information should be read in conjunction with the Company's historical combined
financial statements.
<TABLE>
<CAPTION>
September 30, 1995
------------------
Pro Forma
Pro Forma Consolidated
Genesis McKerley Adjustments Results
------- -------- ----------- -------
<S> <C> <C> <C> <C>
Current assets $191,057 $ 7,388 $ 88 (A) $198,533
Property, plant and equipment, net 243,661 31,550 9,265 (C) 284,476
Other assets 165,671 3,965 36,824 (C) 206,460
-------- ------- ------- --------
Total assets $600,389 $42,903 $46,177 $689,469
-------- ------- ------- --------
Current liabilities $ 56,943 $ 9,742 $ 2,905 (A)(B) $ 69,590
Long term debt, excluding current
maturities 308,052 34,943 41,428 (A) 384,423
Other liabilities 13,846 62 -- 13,908
Shareholders' equity 221,548 (1,844) 1,844 221,548
-------- ------- ------- --------
Total liabilities and shareholders' equity $600,389 $42,903 $46,177 $689,469
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</TABLE>
A) The McKerley Transaction was financed from borrowings of $68,000,000 under
the Company's bank credit facility which includes the repayment of existing
McKerley indebtedness of $27,267,000. The net increase in debt of
$40,733,000 is reflected as a pro forma adjustment. The following pro forma
adjustment reflects the net impact of the financing of the McKerley
Transaction:
(In thousands)
Current assets $ 88
Current liabilities (695)
Long-term debt $41,428
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B) Transaction costs which include professional fees, duplicative salary costs
and severance and certain costs incurred or to be incurred in order to
consummate the transaction have been accrued in the amount of $3,600,000.
The following pro forma adjustment was recorded to accrue these costs:
(In thousands)
Current liabilities $ 3,600
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C) Purchase accounting adjustments include the following allocations:
(In thousands)
Property, plant and equipment $ 9,265
Other assets 1,000
Goodwill $36,824
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<PAGE>
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.
GENESIS HEALTH VENTURES, INC.
By: /s/ George V. Hager, Jr.
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George V. Hager, Jr., Senior Vice President
and Chief Financial Officer
Date: May 20, 1996
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