XML 47 R10.htm IDEA: XBRL DOCUMENT v2.4.1.9
Business Acquisitions
 3 Months Ended
Mar. 31, 2015
Business Combinations [Abstract]  
Business Acquisitions
5. Business Acquisitions:

During the three months ended March 31, 2015, the Company completed the acquisition of three physician group practices for total cash consideration of $37.1 million. In connection with these acquisitions, the Company recorded goodwill of $33.6 million, other intangible assets consisting primarily of physician and hospital agreements of $4.8 million and other liabilities of $1.3 million. These acquisitions expanded the Company’s national network of physician practices.

In addition, during the three months ended March 31, 2015, the Company paid $0.4 million for contingent consideration related to certain prior-period acquisitions, of which all but the accretion recorded during 2015 was accrued as of December 31, 2014. In connection with prior-period acquisitions, the Company also recorded a net increase of $3.9 million to goodwill composed of a decrease in intangible assets of $5.3 million, a decrease of $2.0 million in other long-term liabilities and $0.6 million in additional cash consideration related to a working capital true-up adjustment. These measurement period adjustments did not have a material impact on the Company’s Condensed Consolidated Financial Statements in any period; therefore, the Company has not retrospectively adjusted such statements. The Company expects that $10.8 million of the goodwill recorded during the three months ended March 31, 2015 will be deductible for tax purposes.

During the three months ended March 31, 2014, the Company paid $3.4 million for contingent consideration related to certain prior-period acquisitions, of which all but the accretion recorded during 2014 was accrued as of December 31, 2013.

The results of operations of the practices acquired during the three months ended March 31, 2015 and 2014 have been included in the Company’s Condensed Consolidated Financial Statements from the dates of acquisition. The following unaudited pro forma information combines the consolidated results of operations of the Company on a GAAP basis and the acquisitions completed during 2015 and 2014, including adjustments for pro forma amortization and interest expense, as if the transactions had occurred on January 1, 2014 and January 1, 2013, respectively (in thousands, except per share data):

 

     Three Months Ended
March 31,		  
     2015      2014  

Net revenue

    $ 643,718       $ 632,774   

Net income

    $ 69,371       $ 68,446   

Net income per common share (1):

      

Basic

    $ 0.74       $ 0.69   

Diluted

    $ 0.73       $ 0.68   

Weighted average common shares (1):

      

Basic

      94,231         99,076   

Diluted

      95,325         100,696   

 

(1)  The comparison of net income per common share is affected by the changes in the number of weighted average shares outstanding in each period.

 

The pro forma results do not necessarily represent results which would have occurred if the acquisitions had taken place at the beginning of the periods indicated, nor are they indicative of the results of future combined operations.