1.
|
The
merger with Summerville Senior Living, Inc. (“Summerville”) completed on
September 1, 2007, referred to as the “Summerville
Acquisition.”
|
2.
|
The
issuance of 11,300,800 shares of common stock in a public offering
completed in July and August 2007, referred to as the “Public
Offering.”
|
3.
|
Summerville’s
acquisition of 36 communities with 3,449 units consisting of (a)
the
acquisition of the leasehold interests of Summerville Investors,
LLC,
which controlled 17 communities with 1,991 units that Summerville
had
previously managed, and (b) the acquisition of leasehold interests
for an
additional 19 communities with 1,458 units at various dates during
2006
and the first quarter of 2007. All of these transactions are
collectively referred to as the “Summerville
Transactions.”
|
4.
|
Emeritus
transactions consisting of (a) the acquisition of the 101-unit Arbor
Place
community in July 2006 formerly managed by Emeritus; (b) the acquisition
of the 24 Fretus communities in February 2007 formerly operated by
Emeritus under long-term leases; (c) the acquisition of the 12 HRT
communities in March 2007 formerly operated by Emeritus under long-term
leases; (d) the acquisition of the 7 HCPI communities in March 2007
formerly operated by Emeritus under long-term leases; (e) the accelerated
conversion of $16.12 million of 6.25% Convertible Subordinated Debentures
into 732,725 shares of common stock in March 2007; and (f) the December
2006 investment in a joint venture with Blackstone Real Estate Advisors
and the related management contracts for 24 communities. All of
these transactions are collectively referred to as the “Emeritus
Transactions.”
|
5.
|
Emeritus
transactions consisting of (a) the acquisition of the 41 HCPI communities
in August 2007, of which 33 were formerly operated by Emeritus and
8 were
formerly operated by Summerville under long-term leases;
(b) the acquisition of 3 HC REIT communities in August 2007
formerly operated by Emeritus under long-term leases; (c) the acquisition
of 9 Wegman communities in August 2007 formerly operated by Emeritus
under
long-term leases. All of these transactions are collectively
referred to as the “Emeritus Q3 2007
Transactions.”
|
Unaudited
Pro Forma Condensed Consolidated Balance Sheet
|
||||||||||||||||||||||||
As
of June 30, 2007
|
||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Summerville
|
Emeritus
|
Emeritus
and
|
||||||||||||||||||||||
Acquisition
|
Merger
|
Q3
2007
|
Public
|
Summerville
|
||||||||||||||||||||
Emeritus
|
As
Reported
|
Transaction
|
Acquisitions
|
Offering
|
Pro
Forma
|
|||||||||||||||||||
As
Reported
|
(Reclassified)
|
Adjustments
|
Adjustments
|
Adjustments
|
Consolidated
|
|||||||||||||||||||
(Condensed)
|
Note
7
|
Note
6
|
Note
5
|
Note
3
|
(Condensed)
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Current
Assets:
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ |
26,524
|
$ |
8,081
|
$ |
-
|
$ | (233,597 | ) | $ |
266,282
|
$ |
67,290
|
|||||||||||
Accounts
receivable, net
|
5,099
|
1,291
|
-
|
-
|
-
|
6,390
|
||||||||||||||||||
Prepaid
expenses and other current assets
|
32,188
|
8,850
|
-
|
715
|
-
|
41,753
|
||||||||||||||||||
Total
current assets
|
63,811
|
18,222
|
-
|
(232,882 | ) |
266,282
|
115,433
|
|||||||||||||||||
Property
and equipment, net
|
835,450
|
340,236
|
(252,704 | ) |
510,412
|
-
|
1,433,394
|
|||||||||||||||||
Lease
and contract intangibles, net
|
22,370
|
19,691
|
44,160
|
(2,518 | ) |
-
|
83,703
|
|||||||||||||||||
Goodwill
|
-
|
14,770
|
55,490
|
-
|
-
|
70,260
|
||||||||||||||||||
Other
intangibles
|
-
|
-
|
151,495
|
911
|
-
|
152,406
|
||||||||||||||||||
Other
assets
|
28,833
|
23,859
|
(7,069 | ) |
4,130
|
-
|
49,753
|
|||||||||||||||||
Total
Assets
|
$ |
950,464
|
$ |
416,778
|
$ | (8,628 | ) | $ |
280,053
|
$ |
266,282
|
$ |
1,904,949
|
|||||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||||
Trade
accounts payable
|
$ |
3,869
|
$ |
5,539
|
$ |
-
|
$ | - | $ |
-
|
$ |
9,408
|
||||||||||||
Current
portion of long-term debt
|
57,922
|
5,235
|
(2,369 | ) | (13,479 | ) |
47,309
|
|||||||||||||||||
Accrued
employee compensation and benefits
|
22,366
|
10,484
|
-
|
-
|
32,850
|
|||||||||||||||||||
Other
accrued expenses and liabilities
|
41,451
|
18,541
|
3,658
|
-
|
63,650
|
|||||||||||||||||||
Total
current liabilities
|
125,608
|
39,799
|
1,289
|
-
|
(13,479 | ) |
153,217
|
|||||||||||||||||
Long-term
debt, net
|
333,568
|
21,891
|
-
|
390,180
|
(48,621 | ) |
697,018
|
|||||||||||||||||
Financing
and lease obligations, net
|
556,097
|
356,032
|
(301,025 | ) | (105,747 | ) |
-
|
505,357
|
||||||||||||||||
Convertible
debentures
|
10,455
|
-
|
-
|
-
|
10,455
|
|||||||||||||||||||
Long-term
debt and interest payable to Apollo
|
-
|
149,070
|
(149,070 | ) |
-
|
-
|
||||||||||||||||||
Other
long-term liabilities
|
36,220
|
12,614
|
4,201
|
(4,380 | ) | (206 | ) |
48,449
|
||||||||||||||||
Total
Liabilities
|
1,061,948
|
579,406
|
(444,605 | ) |
280,053
|
(62,306 | ) |
1,414,496
|
||||||||||||||||
Stockholders'
equity (deficit):
|
||||||||||||||||||||||||
Common
stock
|
2
|
-
|
1
|
1
|
4
|
|||||||||||||||||||
Convertible
preferred stock
|
-
|
28
|
(28 | ) |
-
|
-
|
||||||||||||||||||
Additional
paid-in capital
|
106,852
|
83,419
|
189,929
|
328,587
|
708,787
|
|||||||||||||||||||
Accumulated
earnings (deficit)
|
(218,338 | ) | (246,075 | ) |
246,075
|
-
|
(218,338 | ) | ||||||||||||||||
Total
Stockholders' Equity (Deficit)
|
(111,484 | ) | (162,628 | ) |
435,977
|
-
|
328,588
|
490,453
|
||||||||||||||||
Total
Liabilities and Stockholders' Equity (Deficit)
|
$ |
950,464
|
$ |
416,778
|
$ | (8,628 | ) | $ |
280,053
|
$ |
266,282
|
$ |
1,904,949
|
Unaudited
Pro Forma Condensed Consolidated Statement of Operations
|
||||||||||||||||||||||||||||
For
the Year Ended December 31, 2006
|
||||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||
Summerville
|
Emeritus
and
|
|||||||||||||||||||||||||||
Emeritus
|
Acquisition
|
Summerville
|
Merger
|
Public
|
Summerville
|
|||||||||||||||||||||||
Emeritus
|
Pro
Forma
|
As
Reported
|
Pro
Forma
|
Transaction
|
Offering
|
Pro
Forma
|
||||||||||||||||||||||
As
Reported
|
Transactions
|
(Reclassified)
|
Transactions
|
Adjustments
|
Adjustments
|
Consolidated
|
||||||||||||||||||||||
(Condensed)
|
Note
5
|
Note
7
|
Note
4
|
Note
6
|
Note
3
|
(Condensed)
|
||||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||||||
Community
revenues
|
$ |
419,978
|
$ |
1,453
|
$ |
220,859
|
$ |
52,151
|
$ |
-
|
$ |
-
|
$ |
694,441
|
||||||||||||||
Management
fees
|
1,887
|
2,540
|
899
|
(899 | ) |
-
|
-
|
4,427
|
||||||||||||||||||||
Total
revenues
|
421,865
|
3,993
|
221,758
|
51,252
|
-
|
-
|
698,868
|
|||||||||||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||||||||||||||
Community
operations
|
272,812
|
938
|
144,140
|
37,271
|
96
|
-
|
455,257
|
|||||||||||||||||||||
Texas
lawsuit settlement
|
(12,207 | ) |
-
|
-
|
-
|
-
|
-
|
(12,207 | ) | |||||||||||||||||||
General
and administrative
|
38,078
|
450
|
22,745
|
-
|
-
|
-
|
61,273
|
|||||||||||||||||||||
Depreciation
and amortization
|
50,478
|
19,267
|
9,833
|
-
|
36,511
|
-
|
116,089
|
|||||||||||||||||||||
Facility
lease expense
|
44,545
|
(31,132 | ) |
37,135
|
13,793
|
35,002
|
-
|
99,343
|
||||||||||||||||||||
Total
operating expenses
|
393,706
|
(10,477 | ) |
213,853
|
51,064
|
71,609
|
-
|
719,755
|
||||||||||||||||||||
Operating
income (loss) from continuing
|
||||||||||||||||||||||||||||
operations
|
28,159
|
14,470
|
7,905
|
188
|
(71,609 | ) |
-
|
(20,887 | ) | |||||||||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||||||||||||||
Interest
income
|
2,893
|
-
|
487
|
-
|
-
|
-
|
3,380
|
|||||||||||||||||||||
Interest
expense, debt and other
|
(7,995 | ) | (46,171 | ) | (18,714 | ) |
-
|
17,513
|
5,426
|
(49,941 | ) | |||||||||||||||||
Interest
expense, capital leases
|
(41,257 | ) |
14,227
|
(21,400 | ) |
-
|
18,578
|
-
|
(29,852 | ) | ||||||||||||||||||
Other,
net
|
588
|
(2,474 | ) |
907
|
-
|
-
|
-
|
(979 | ) | |||||||||||||||||||
Total
other income (expense)
|
(45,771 | ) | (34,418 | ) | (38,720 | ) |
-
|
36,091
|
5,426
|
(77,392 | ) | |||||||||||||||||
Income
(loss) from continuing operations
|
||||||||||||||||||||||||||||
before
taxes
|
(17,612 | ) | (19,948 | ) | (30,815 | ) |
188
|
(35,518 | ) |
5,426
|
(98,279 | ) | ||||||||||||||||
Income
tax (expense) benefit
|
3,044
|
-
|
(661 | ) |
-
|
-
|
-
|
2,383
|
||||||||||||||||||||
Income
(loss) from continuing operations
|
$ | (14,568 | ) | $ | (19,948 | ) | $ | (31,476 | ) | $ |
188
|
$ | (35,518 | ) | $ |
5,426
|
$ | (95,896 | ) | |||||||||
Basic
and diluted earnings per share
|
$ | (0.82 | ) | $ | (2.51 | ) | ||||||||||||||||||||||
Basic
and diluted weighted common
|
||||||||||||||||||||||||||||
shares
outstanding
|
17,774
|
733
|
8,393
|
11,301
|
38,201
|
Unaudited
Pro Forma Consolidated Statement of Operations
|
||||||||||||||||||||||||||||
For
the Six Months Ended June 30, 2007
|
||||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||
Summerville
|
Emeritus
and
|
|||||||||||||||||||||||||||
Emeritus
|
Acquisition
|
Summerville
|
Merger
|
Public
|
Summerville
|
|||||||||||||||||||||||
Emeritus
|
Pro
Forma
|
As
Reported
|
Pro
Forma
|
Transaction
|
Offering
|
Pro
Forma
|
||||||||||||||||||||||
As
Reported
|
Transactions
|
(Reclassified)
|
Transactions
|
Adjustments
|
Adjustments
|
Consolidated
|
||||||||||||||||||||||
(Condensed)
|
Note
5
|
Note
7
|
Note
4
|
Note
6
|
Note
3
|
(Condensed)
|
||||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||||||
Community
revenues
|
$ |
219,345
|
$ |
-
|
$ |
139,808
|
$ |
1,689
|
$ |
-
|
$ |
-
|
$ |
360,842
|
||||||||||||||
Management
fees
|
1,807
|
-
|
-
|
-
|
-
|
-
|
1,807
|
|||||||||||||||||||||
Total
revenues
|
221,152
|
-
|
139,808
|
1,689
|
-
|
-
|
362,649
|
|||||||||||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||||||||||||||
Community
operations
|
140,011
|
-
|
90,889
|
1,094
|
48
|
-
|
232,042
|
|||||||||||||||||||||
General
and administrative
|
21,336
|
-
|
9,163
|
-
|
-
|
-
|
30,499
|
|||||||||||||||||||||
Depreciation
and amortization
|
29,195
|
5,969
|
6,543
|
-
|
16,629
|
-
|
58,336
|
|||||||||||||||||||||
Facility
lease expense
|
17,852
|
(11,048 | ) |
21,368
|
224
|
21,021
|
-
|
49,417
|
||||||||||||||||||||
Total
operating expenses
|
208,394
|
(5,079 | ) |
127,963
|
1,318
|
37,698
|
-
|
370,294
|
||||||||||||||||||||
Operating
income (loss) from continuing
|
||||||||||||||||||||||||||||
operations
|
12,758
|
5,079
|
11,845
|
371
|
(37,698 | ) |
-
|
(7,645 | ) | |||||||||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||||||||||||||
Interest
income
|
1,192
|
-
|
376
|
-
|
-
|
-
|
1,568
|
|||||||||||||||||||||
Interest
expense, debt and other
|
(10,911 | ) | (17,018 | ) | (10,912 | ) |
-
|
9,619
|
2,698
|
(26,524 | ) | |||||||||||||||||
Interest
expense, capital leases
|
(19,649 | ) |
6,653
|
(13,965 | ) |
-
|
12,551
|
-
|
(14,410 | ) | ||||||||||||||||||
Other,
net
|
6,606
|
1,242
|
723
|
-
|
-
|
-
|
8,571
|
|||||||||||||||||||||
Total
other income (expense)
|
(22,762 | ) | (9,123 | ) | (23,778 | ) |
-
|
22,170
|
2,698
|
(30,795 | ) | |||||||||||||||||
Income
(loss) from continuing
|
||||||||||||||||||||||||||||
operations
before taxes
|
(10,004 | ) | (4,044 | ) | (11,933 | ) |
371
|
(15,528 | ) |
2,698
|
(38,440
|
) | ||||||||||||||||
Income
tax (expense) benefit
|
(1,320 | ) |
-
|
(11 | ) |
-
|
-
|
-
|
(1,331 | ) | ||||||||||||||||||
Income
(loss) from continuing operations
|
$ | (11,324 | ) | $ | (4,044 | ) | $ | (11,944 | ) | $ |
371
|
$ | (15,528 | ) | $ |
2,698
|
$ | (39,771 | ) | |||||||||
Basic
and diluted earnings per share
|
$ | (0.61 | ) | $ | (1.02 | ) | ||||||||||||||||||||||
Basic
and diluted weighted common
|
||||||||||||||||||||||||||||
shares
outstanding
|
18,674
|
537
|
8,393
|
11,301
|
38,905
|
1.
|
Basis
of Pro Forma Presentation
|
2.
|
Preliminary
Summerville Purchase Price
|
Common
stock
|
$ |
273,349
|
||
Cash,
including transaction costs
|
4,471
|
|||
Total
|
$ |
277,820
|
Net
working capital deficit
|
$ | (16,342 | ) | |
Property
and equipment
|
17,058
|
|||
Assets
under capital leases
|
70,474
|
|||
Total
property and equipment
|
87,532
|
|||
Below
market rents
|
100,573
|
|||
Above
market rents
|
(15,886 | ) | ||
In-place
resident contracts
|
63,851
|
|||
Lease
purchase options
|
45,022
|
|||
Trademarks
and licenses
|
5,900
|
|||
Goodwill
|
70,260
|
|||
Total
net intangibles
|
269,720
|
|||
Other
long-term assets
|
17,603
|
|||
Long-term
debt
|
(24,757 | ) | ||
Capital
lease obligations
|
(55,007 | ) | ||
Total
long-term debt
|
(79,764 | ) | ||
Other
long-term liabilities
|
(929 | ) | ||
Total
|
$ |
277,820
|
3.
|
Public
Offering
|
Total
net proceeds
|
$ |
328,588
|
||
Pay
off long-term debt, including prepayment fees
|
(62,306 | ) | ||
Funding
of Emeritus Q3 2007 Transactions
|
(233,597 | ) | ||
Balance
of net proceeds
|
$ |
32,685
|
4.
|
Summerville
Transactions
|
Summerville
|
||||||||||||||||||||||||||||
Acquisitions
|
Investors
|
Acquisitions
|
Acquisitions
|
Acquisitions
|
Acquisitions
|
Summerville
|
||||||||||||||||||||||
1st
Qtr 2006
|
2nd
Qtr 2006
|
2nd
Qtr 2006
|
3rd
Qtr 2006
|
4th
Qtr 2006
|
1st
Qtr 2007
|
Total
2006
|
||||||||||||||||||||||
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
(f)
|
Pro
Forma
|
||||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||||||
Community
revenues
|
$ |
255
|
$ |
15,612
|
$ |
2,128
|
$ |
3,195
|
$ |
13,868
|
$ |
17,093
|
$ |
52,151
|
||||||||||||||
Management
fees
|
–
|
(899 | ) |
–
|
–
|
–
|
–
|
(899 | ) | |||||||||||||||||||
Total
revenues
|
255
|
14,713
|
2,128
|
3,195
|
13,868
|
17,093
|
51,252
|
|||||||||||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||||||||||||||
Community
operations
|
187
|
10,585
|
2,196
|
2,553
|
9,386
|
12,364
|
37,271
|
|||||||||||||||||||||
Facility
lease expense
|
65
|
4,455
|
442
|
994
|
4,319
|
3,518
|
13,793
|
|||||||||||||||||||||
Total
operating expenses
|
252
|
15,040
|
2,638
|
3,547
|
13,705
|
15,882
|
51,064
|
|||||||||||||||||||||
Operating
income from continuing operations
|
$ |
3
|
$ | (327 | ) | $ | (510 | ) | $ | (352 | ) | $ |
163
|
$ |
1,211
|
$ |
188
|
Summerville
|
||||
Total
2007
|
||||
Pro
Forma
|
||||
(g)
|
||||
REVENUES:
|
||||
Community
revenues
|
$ |
1,689
|
||
Total
revenues
|
1,689
|
|||
OPERATING
EXPENSES:
|
||||
Community
operations
|
1,094
|
|||
Facility
lease expense
|
224
|
|||
Total
operating expenses
|
1,318
|
|||
Operating
income from continuing operations
|
$ |
371
|
(a)
|
The
first quarter 2006 acquisition consists of one community with 114
units
that was acquired through a leasehold interest in February
2006. These adjustments to the unaudited pro forma statement of
operations reflect the unaudited pre-acquisition historical results
of
operations of this community for the one month period ended January
31,
2006.
|
(b)
|
In
April 2006, Summerville acquired 100% of the membership interests
in
Summerville Investors, LLC. Summerville Investors, which became
a wholly-owned subsidiary of Summerville, controls 17 communities
with
1,991 units through leasehold interests. Summerville had
managed these properties before the acquisition. For the three
month period ended March 31, 2006, Summerville recorded $899,000
of
management fee revenues associated with the 17
properties. These adjustments reflect the unaudited
pre-acquisition historical results of operations of Summerville Investors
for the three
|
|
month
period ended March 31, 2006, and the elimination of the management
fees
earned by Summerville from these communities for that same
period.
|
(c)
|
The
second quarter 2006 acquisitions consist of four communities with
168
units acquired through leasehold interests. Three of the
communities were acquired effective April 1, 2006, and one effective
April
20, 2006. The adjustments to the unaudited pro forma statement
of operations reflect the unaudited pre-acquisition historical results
of
operations of these four communities as if they had been acquired
on
January 1, 2006.
|
(d)
|
The
third quarter acquisitions consist of two communities with 186 units
that
were acquired through leasehold interest in August 2006. The
adjustments to the unaudited pro forma statement of operations reflect
the
unaudited pre-acquisition historical results of operations of these
two
communities for seven month period ended July 31,
2006.
|
(e)
|
The
fourth quarter acquisitions consist of seven communities with 587
units,
six acquired in October 2006 and one in December 2006. The
adjustments to the unaudited pro forma statement of operations reflect
the
unaudited pre-acquisition historical results of operations of these
seven
communities as if they had been acquired on January 1,
2006.
|
(f)
|
In
the first quarter of 2007, Summerville acquired four communities
with 403
units, two in January 2007 and two in March 2007, under long-term
leases. The adjustments to the unaudited pro forma statement of
operations reflect the unaudited pre-acquisition historical results
of
operations of these four communities for the 12-month period ended
December 31, 2006.
|
(g)
|
The
pro forma adjustments for the six months ended June 30, 2007, reflect
the
two communities acquired by Summerville on March 1, 2007, as discussed
in
item (f) above. The adjustments to the unaudited pro forma
statement of operations reflect the unaudited pre-acquisition historical
results of operations of these two communities for the two-month
period
ended February 28, 2007.
|
5.
|
Emeritus
Transactions
|
Blackstone
|
||||||||||||||||||||||||
Arbor
Place
|
Joint
Venture
|
Debenture
|
Q1 2007 | Q3 2007 |
Emeritus
|
|||||||||||||||||||
Acquisition
|
Investment
|
Conversion
|
Acquisitions
|
Acquisitions
|
Total
2006
|
|||||||||||||||||||
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
Pro
Forma
|
|||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||
Community
revenues
|
$ |
1,453
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
1,453
|
||||||||||||
Management
fees
|
(97 | ) |
2,637
|
–
|
–
|
–
|
2,540
|
|||||||||||||||||
Total
revenues
|
1,356
|
2,637
|
–
|
–
|
–
|
3,993
|
||||||||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||||||||||
Community
operations
|
938
|
–
|
–
|
–
|
–
|
938
|
||||||||||||||||||
General
and administrative
|
–
|
450
|
–
|
–
|
–
|
450
|
||||||||||||||||||
Depreciation
and amortization
|
429
|
–
|
–
|
5,196
|
13,642
|
19,267
|
||||||||||||||||||
Facility
lease expense
|
–
|
–
|
–
|
(15,056 | ) | (16,076 | ) | (31,132 | ) | |||||||||||||||
Total
operating expenses
|
1,367
|
450
|
–
|
(9,860 | ) | (2,434 | ) | (10,477 | ) | |||||||||||||||
Operating
income (loss) from continuing
|
||||||||||||||||||||||||
operations
|
(11 | ) |
2,187
|
–
|
9,860
|
2,434
|
14,470
|
|||||||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||||||||||
Interest
expense, debt and other
|
(305 | ) |
1,008
|
(20,823 | ) | (26,051 | ) | (46,171 | ) | |||||||||||||||
Interest
expense, capital and financing leases
|
–
|
–
|
–
|
2,050
|
12,177
|
14,227
|
||||||||||||||||||
Other,
net
|
–
|
(2,360 | ) |
–
|
(114 | ) | (2,474 | ) | ||||||||||||||||
Total
other income (expense)
|
(305 | ) | (2,360 | ) |
1,008
|
(18,773 | ) | (13,988 | ) | (34,418 | ) | |||||||||||||
Income
(loss) from continuing operations
|
||||||||||||||||||||||||
before
taxes
|
$ | (316 | ) | $ | (173 | ) | $ |
1,008
|
$ | (8,913 | ) | $ | (11,554 | ) | $ | (19,948 | ) |
Debenture
|
Q1
2007
|
Q3
2007
|
Emeritus
|
|||||||||||||
Conversion
|
Acquisitions
|
Acquisitions
|
Total
2007
|
|||||||||||||
(c)
|
(d)
|
(e)
|
Pro
Forma
|
|||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||
Depreciation
and amortization
|
$
|
–
|
$ | (869 | ) | $ |
6,838
|
$ |
5,969
|
|||||||
Facility
lease expense
|
–
|
(2,936 | ) | (8,112 | ) | (11,048 | ) | |||||||||
Total
operating expenses
|
–
|
(3,805 | ) | (1,274 | ) | (5,079 | ) | |||||||||
Operating
income (loss) from continuing
|
||||||||||||||||
operations
|
–
|
3,805
|
1,274
|
5,079
|
||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||
Interest
expense, debt and other
|
182
|
(4,175 | ) | (13,025 | ) | (17,018 | ) | |||||||||
Interest
expense, capital and financing leases
|
–
|
459
|
6,194
|
6,653
|
||||||||||||
Other,
net
|
1,329
|
(87 | ) |
1,242
|
||||||||||||
Total
other income (expense)
|
1,511
|
(3,716 | ) | (6,918 | ) | (9,123 | ) | |||||||||
Income
(loss) from continuing operations
|
||||||||||||||||
before
taxes
|
$ |
1,511
|
$ |
89
|
$ | (5,644 | ) | $ | (4,044 | ) |
(a)
|
The
Arbor Place community was managed by Emeritus prior to the acquisition
in
July 2006. These adjustments reflect the unaudited
pre-acquisition historical results of operations for the six-month
period
ended June 30, 2006, and the elimination of management fees earned
by
Emeritus from this community for the same period, as if the Company
had
owned Arbor Place as of January 1,
2006.
|
(b)
|
The
Company entered into a joint venture agreement with Blackstone Real
Estate
Advisors in December 2006. Emeritus owns a 19% interest in the
joint venture and manages 24 of the 25 communities owned and operated
by
the Blackstone joint venture. The Company accounts for this
investment using the equity method of accounting. These
adjustments reflect unaudited management fees, equity losses of the
joint
venture, and general and administrative expenses for the 11 months
ended
November 30, 2006, as if the joint venture was effective on January
1,
2006.
|
(c)
|
$16.12
million face amount of the Company’s convertible debentures were converted
into 732,725 shares of common stock effective March 8,
2007. Interest was paid on these debentures through the
maturity date of July 1, 2008, as an incentive for early
conversion. The adjustment to the unaudited pro forma statement
of operations for the year ended December 31, 2006, and the six months
ended June 30, 2007, reflect the incentive payment and the conversion
as
if it happened at the beginning of the respective periods. The
weighed average shares outstanding was adjusted for year ended December
31, 2006, and the six months ended June 30, 2007, to reflect the
issuance
of these shares as if they were outstanding from the beginning of
the
respective periods.
|
(d)
|
The
first quarter 2007 acquisitions include the
following:
|
·
|
The
Fretus communities were operated by Emeritus under long-term leases
prior
to the acquisition on February 22, 2007. The adjustment to the unaudited
pro forma statement of operations for the year ended December 31,
2006,
and the six months ended June 30, 2007, reflect the unaudited results
of
the 24 Fretus communities as if the Company had owned them since
the
beginning of the respective
periods.
|
·
|
The
HRT communities were operated by Emeritus under long-term leases
prior to
the acquisition on March 15, 2007. The adjustment to the
unaudited pro forma statement of operations for the year ended December
31, 2006, and the six months ended June 30, 2007, reflect the unaudited
results of the 12 HRT communities as if the Company had owned them
since
the beginning of the respective
periods.
|
·
|
The
HCPI communities were operated by Emeritus under long-term leases
prior to
the acquisition on March 26, 2007. The adjustment to the unaudited
pro
forma statement of operations for the year ended December 31, 2006,
and
the six months ended June 30, 2007, reflect the unaudited results
of the
seven HCPI communities as if the Company had owned them since the
beginning of the respective
periods.
|
(e)
|
The
third quarter 2007 acquisitions include the
following:
|
·
|
The
HC REIT communities were operated by Emeritus under long-term leases
prior
to the acquisition on August 6, 2007. The adjustment to the unaudited
pro
forma statement of operations for the year ended December 31, 2006,
and
the six months ended June 30, 2007, reflect the unaudited results
of the
three HC REIT communities as if the Company had owned them since
the
beginning of the respective
periods.
|
·
|
The
HCPI communities were operated by Emeritus under long-term leases
prior to
the acquisition on August 15, 2007. The adjustment to the unaudited
pro
forma statement of operations for the year ended December 31, 2006,
and
the six months ended June 30, 2007, reflect the unaudited results
of the
41 HCPI communities as if the Company had owned them since the beginning
of the respective periods.
|
·
|
The
Wegman communities were operated by Emeritus under long-term leases
prior
to the acquisition on August 31, 2007. The adjustment to the unaudited
pro
forma statement of operations for the year ended December 31, 2006,
and
the six months ended June 30, 2007, reflect the unaudited results
of the
seven HCPI communities as if the Company had owned them since the
beginning of the respective
periods.
|
6.
|
Merger
Transaction Adjustments
|
Summerville
|
Transaction
|
Lease
|
Purchase
|
Total
|
||||||||||||||||||||||
Reclassified
|
Adjustments
|
Accounting
|
Accounting
|
Transaction
|
Summerville
|
|||||||||||||||||||||
Note
7
|
(a)
|
(b)
|
(c)
|
Adjustments
|
Pro
Forma
|
|||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||
Current
Assets:
|
||||||||||||||||||||||||||
Cash
and cash equivalents
|
$ |
8,081
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
8,081
|
||||||||||||||
Accounts
receivable, net
|
1,291
|
–
|
–
|
–
|
–
|
1,291
|
||||||||||||||||||||
Prepaid
expenses and other current assets
|
8,850
|
–
|
–
|
–
|
–
|
8,850
|
||||||||||||||||||||
Total
current assets
|
18,222
|
–
|
–
|
–
|
–
|
18,222
|
||||||||||||||||||||
Property
and equipment, net
|
340,236
|
(340,236 | ) | (1 | )(2) |
70,474
|
17,058
|
(252,704 | ) |
87,532
|
||||||||||||||||
Net
asset/liability assumed
|
–
|
20,444
|
(15,467 | ) | (4,977 | ) |
–
|
–
|
||||||||||||||||||
Lease
and contract intangibles, net
|
19,691
|
(19,691 | ) |
–
|
63,851
|
44,160
|
63,851
|
|||||||||||||||||||
Goodwill
|
14,770
|
(14,770 | ) | (3 | ) |
–
|
70,260
|
55,490
|
70,260
|
|||||||||||||||||
Other
intangibles
|
–
|
–
|
151,495
|
151,495
|
151,495
|
|||||||||||||||||||||
Other
assets
|
23,859
|
(3,067 | ) | (1 | ) |
–
|
(4,002 | ) | (7,069 | ) |
16,790
|
|||||||||||||||
Total
Assets
|
$ |
416,778
|
$ | (357,320 | ) | $ |
55,007
|
$ |
293,685
|
$ | (8,628 | ) | $ |
408,150
|
||||||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||||||
Trade
accounts payable
|
$ |
5,539
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
5,539
|
||||||||||||||
Current
portion of long-term debt and lease obligations
|
5,235
|
(2,369 | ) | (2 | ) |
–
|
–
|
(2,369 | ) |
2,866
|
||||||||||||||||
Accrued
employee compensation and benefits
|
10,484
|
–
|
–
|
–
|
–
|
10,484
|
||||||||||||||||||||
Other
accrued expenses and liabilities
|
18,541
|
–
|
–
|
3,658
|
3,658
|
22,199
|
||||||||||||||||||||
Total
current liabilities
|
39,799
|
(2,369 | ) |
–
|
3,658
|
1,289
|
41,088
|
|||||||||||||||||||
Long-term
debt, net
|
21,891
|
–
|
–
|
–
|
21,891
|
|||||||||||||||||||||
Financing
and lease obligations, net
|
356,032
|
(356,032 | ) | (1 | )(2) |
55,007
|
–
|
(301,025 | ) |
55,007
|
||||||||||||||||
Long-term
debt and interest payable to Apollo
|
149,070
|
(149,070 | ) | (4 | ) |
–
|
–
|
(149,070 | ) |
–
|
||||||||||||||||
Other
long-term liabilities
|
12,614
|
(12,477 | ) | (2 | ) |
–
|
16,678
|
4,201
|
16,815
|
|||||||||||||||||
Total
Liabilities
|
579,406
|
(519,948 | ) |
55,007
|
20,336
|
(444,605 | ) |
134,801
|
||||||||||||||||||
Stockholders'
equity (deficit):
|
||||||||||||||||||||||||||
Common
stock
|
–
|
–
|
–
|
1
|
1
|
1
|
||||||||||||||||||||
Convertible
preferred stock
|
28
|
(28 | ) | (5 | ) |
–
|
–
|
(28 | ) |
–
|
||||||||||||||||
Additional
paid-in capital
|
83,419
|
(83,419 | ) | (5 | ) |
–
|
273,348
|
189,929
|
273,348
|
|||||||||||||||||
Accumulated
earnings (deficit)
|
(246,075 | ) |
246,075
|
(5 | ) |
–
|
–
|
246,075
|
–
|
|||||||||||||||||
Total
Stockholders' Equity (Deficit)
|
(162,628 | ) |
162,628
|
–
|
273,349
|
435,977
|
273,349
|
|||||||||||||||||||
|
||||||||||||||||||||||||||
Total
Liabilities and Stockholders' Equity (Deficit)
|
$ |
416,778
|
$ | (357,320 | ) | $ |
55,007
|
$ |
293,685
|
$ | (8,628 | ) | $ |
408,150
|
Summerville
|
Transaction
|
Lease
|
Purchase
|
Total
|
||||||||||||||||||||||
Reclassified
|
Adjustments
|
Accounting
|
Accounting
|
Transaction
|
Summerville
|
|||||||||||||||||||||
Note
7
|
(a)
|
(b)
|
(c)
|
Adjustments
|
Pro
Forma
|
|||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||||
Community
revenue
|
$ |
220,859
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
220,859
|
||||||||||||||
Management
fees
|
899
|
–
|
–
|
–
|
–
|
899
|
||||||||||||||||||||
Total
revenues
|
221,758
|
–
|
–
|
–
|
–
|
221,758
|
||||||||||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||||||||||||
Community
operations
|
144,140
|
–
|
–
|
96
|
96
|
144,236
|
||||||||||||||||||||
General
and administrative
|
22,745
|
–
|
–
|
–
|
–
|
22,745
|
||||||||||||||||||||
Depreciation
and amortization
|
9,833
|
(9,833 | ) | (1 | )(2) |
3,648
|
42,696
|
36,511
|
46,344
|
|||||||||||||||||
Facility
lease expense
|
37,135
|
17,156
|
(1 | )(2) |
7,526
|
10,320
|
35,002
|
72,137
|
||||||||||||||||||
Total
operating expenses
|
213,853
|
7,323
|
11,174
|
53,112
|
71,609
|
285,462
|
||||||||||||||||||||
Operating
income (loss) from continuing operations
|
7,905
|
(7,323 | ) | (11,174 | ) | (53,112 | ) | (71,609 | ) | (63,704 | ) | |||||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||||||||||||
Interest
income
|
487
|
–
|
–
|
–
|
–
|
487
|
||||||||||||||||||||
Interest
expense, debt and other
|
(18,714 | ) |
17,729
|
(4 | ) |
–
|
(216 | ) |
17,513
|
(1,201 | ) | |||||||||||||||
Interest
expense, capital and financing lease obligations
|
(21,400 | ) |
21,400
|
(1 | )(2) | (2,822 | ) |
–
|
18,578
|
(2,822 | ) | |||||||||||||||
Other,
net
|
907
|
–
|
–
|
–
|
–
|
907
|
||||||||||||||||||||
Total
other income (expense), net
|
(38,720 | ) |
39,129
|
(2,822 | ) | (216 | ) |
36,091
|
(2,629 | ) | ||||||||||||||||
Income
(loss) from continuing operations before taxes
|
(30,815 | ) |
31,806
|
(13,996 | ) | (53,328 | ) | (35,518 | ) | (66,333 | ) | |||||||||||||||
Income
tax (expense) benefit
|
(661 | ) |
–
|
–
|
–
|
–
|
(661 | ) | ||||||||||||||||||
Income
(loss) from continuing operations
|
$ | (31,476 | ) | $ |
31,806
|
$ | (13,996 | ) | $ | (53,328 | ) | $ | (35,518 | ) | $ | (66,994 | ) |
Summerville
|
Transaction
|
Lease
|
Purchase
|
Total
|
||||||||||||||||||||||
Reclassified
|
Adjustments
|
Accounting
|
Accounting
|
Transaction
|
Summerville
|
|||||||||||||||||||||
Note
7
|
(a)
|
(b)
|
(c)
|
Adjustments
|
Pro
Forma
|
|||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||||
Community
revenues
|
$ |
139,808
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
–
|
$ |
139,808
|
||||||||||||||
Management
fees
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||||
Total
revenues
|
139,808
|
–
|
–
|
–
|
–
|
139,808
|
||||||||||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||||||||||||
Community
operations
|
90,889
|
–
|
–
|
48
|
48
|
90,937
|
||||||||||||||||||||
General
and administrative
|
9,163
|
–
|
–
|
–
|
–
|
9,163
|
||||||||||||||||||||
Depreciation
and amortization
|
6,543
|
(6,543 | ) | (1 | )(2) |
1,824
|
21,348
|
16,629
|
23,172
|
|||||||||||||||||
Facility
lease expense
|
21,368
|
12,778
|
(1 | )(2) |
3,083
|
5,160
|
21,021
|
42,389
|
||||||||||||||||||
Total
operating expenses
|
127,963
|
6,235
|
4,907
|
26,556
|
37,698
|
165,661
|
||||||||||||||||||||
Operating
income (loss) from continuing operations
|
11,845
|
(6,235 | ) | (4,907 | ) | (26,556 | ) | (37,698 | ) | (25,853 | ) | |||||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||||||||||||
Interest
income
|
376
|
–
|
–
|
–
|
–
|
376
|
||||||||||||||||||||
Interest
expense, debt and other
|
(10,912 | ) |
9,727
|
(4 | ) |
–
|
(108 | ) |
9,619
|
(1,293 | ) | |||||||||||||||
Interest
expense, capital and financing lease obligations
|
(13,965 | ) |
13,965
|
(1 | )(2) | (1,414 | ) |
–
|
12,551
|
(1,414 | ) | |||||||||||||||
Other,
net
|
723
|
–
|
–
|
–
|
–
|
723
|
||||||||||||||||||||
Total
other income (expense), net
|
(23,778 | ) |
23,692
|
(1,414 | ) | (108 | ) |
22,170
|
(1,608 | ) | ||||||||||||||||
Income
(loss) from continuing operations before taxes
|
(11,933 | ) |
17,457
|
(6,321 | ) | (26,664 | ) | (15,528 | ) | (27,461 | ) | |||||||||||||||
Income
tax (expense) benefit
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||||
Income
(loss) from continuing operations
|
$ | (11,933 | ) | $ |
17,457
|
$ | (6,321 | ) | $ | (26,664 | ) | $ | (15,528 | ) | $ | (27,461 | ) |
(3)
|
Goodwill
recorded by Summerville from business acquisitions completed prior
to the
merger is eliminated.
|
(4)
|
Long-term
debt and interest payable to certain funds affiliated with Apollo
Real
Estate Advisors, which owned a significant majority of Summerville’s
capital stock, were satisfied through the issuance of Emeritus common
stock in the merger transaction and is
eliminated.
|
(5)
|
The
equity accounts of Summerville as of the merger date are
eliminated.
|
Year
Ended
|
Six
Months
|
||||||||||||||||||
Summerville
|
Estimated
|
December
31,
|
June
30,
|
||||||||||||||||
Fair
Value
|
Life
|
2006
|
2007
|
||||||||||||||||
Leasehold
improvements
|
$ |
11,354
|
9.7
years
|
(y)
|
$ |
1,176
|
$ |
588
|
|||||||||||
Capital
lease assets
|
70,474
|
19.3
years
|
(y)
|
3,648
|
1,824
|
||||||||||||||
Furniture,
fixtures & equipment
|
3,814
|
4.8
years
|
(y)
|
792
|
396
|
||||||||||||||
Goodwill
|
70,260
|
N/A |
-
|
-
|
|||||||||||||||
Lease
intangibles (z)
|
63,851
|
19
months
|
(z)
|
40,332
|
20,166
|
||||||||||||||
Purchase
options (v)
|
45,022
|
N/A |
-
|
-
|
|||||||||||||||
Above/below
market rents, net (w)
|
84,687
|
8.2
years
|
(y)
|
10,320
|
5,160
|
||||||||||||||
Trademarks
and licenses (x)
|
5,900
|
11.9
years
|
(y)
|
396
|
198
|
||||||||||||||
$ |
355,362
|
$ |
56,664
|
(u)
|
$ |
28,332
|
(u)
|
Summerville
|
Summerville
|
|||||||||||
As
Reported
|
Reclassifications
|
Reclassified
|
||||||||||
REVENUES:
|
||||||||||||
Community
revenue
|
$ |
-
|
$ |
220,859
|
$ |
220,859
|
||||||
Management
fees
|
899
|
-
|
899
|
|||||||||
Rental
and other resident service revenue
|
221,684
|
(221,684 | ) |
-
|
||||||||
Other
|
540
|
(540 | ) |
-
|
||||||||
Total
revenues
|
223,123
|
(1,365 | ) |
221,758
|
||||||||
OPERATING
EXPENSES:
|
||||||||||||
Community
operations
|
-
|
144,140
|
144,140
|
|||||||||
General
and administrative
|
54,276
|
(31,531 | ) |
22,745
|
||||||||
Depreciation
and amortization
|
-
|
9,833
|
9,833
|
|||||||||
Facility
lease expense
|
37,135
|
-
|
37,135
|
|||||||||
Salary
and benefits
|
105,368
|
(105,368 | ) |
-
|
||||||||
Consultants
and professional fees
|
7,691
|
(7,691 | ) |
-
|
||||||||
Loss
on disposal of property and equipment
|
8
|
(8 | ) |
-
|
||||||||
Total
operating expenses
|
204,478
|
9,375
|
213,853
|
|||||||||
Operating
income from continuing operations
|
18,645
|
(10,740 | ) |
7,905
|
||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||
Interest
income
|
487
|
-
|
487
|
|||||||||
Interest
expense, debt and other
|
(18,470 | ) | (244 | ) | (18,714 | ) | ||||||
Interest
expense, capital and financing lease obligations
|
(21,400 | ) |
-
|
(21,400 | ) | |||||||
Other,
net
|
-
|
907
|
907
|
|||||||||
Depreciation
and amortization
|
(10,077 | ) |
10,077
|
-
|
||||||||
Total
other expense, net
|
(49,460 | ) |
10,740
|
(38,720 | ) | |||||||
Loss
from continuing operations before taxes
|
(30,815 | ) |
-
|
(30,815 | ) | |||||||
Income
tax (expense) benefit
|
(661 | ) |
-
|
(661 | ) | |||||||
Loss
from continuing operations
|
$ | (31,476 | ) | $ |
-
|
$ | (31,476 | ) |
Summerville
|
Summerville
|
|||||||||||
As
Reported
|
Reclassifications
|
Reclassified
|
||||||||||
REVENUES:
|
||||||||||||
Community
revenue
|
$ |
-
|
$ |
139,808
|
$ |
139,808
|
||||||
Management
fees
|
-
|
-
|
-
|
|||||||||
Rental
and other resident service revenue
|
140,467
|
(140,467 | ) |
-
|
||||||||
Other
|
64
|
(64 | ) |
-
|
||||||||
Total
revenues
|
140,531
|
(723 | ) |
139,808
|
||||||||
OPERATING
EXPENSES:
|
||||||||||||
Community
operations
|
-
|
90,889
|
90,889
|
|||||||||
General
and administrative
|
32,119
|
(22,956 | ) |
9,163
|
||||||||
Depreciation
and amortization
|
-
|
6,543
|
6,543
|
|||||||||
Facility
lease expense
|
21,368
|
-
|
21,368
|
|||||||||
Salary
and benefits
|
64,966
|
(64,966 | ) |
-
|
||||||||
Consultants
and professional fees
|
2,967
|
(2,967 | ) |
-
|
||||||||
Loss
on disposal of property and equipment
|
-
|
-
|
-
|
|||||||||
Total
operating expenses
|
121,420
|
6,543
|
127,963
|
|||||||||
Operating
income from continuing operations
|
19,111
|
(7,266 | ) |
11,845
|
||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||
Interest
income
|
376
|
-
|
376
|
|||||||||
Interest
expense, debt and other
|
(10,774 | ) | (138 | ) | (10,912 | ) | ||||||
Interest
expense, capital and financing lease obligations
|
(13,965 | ) |
-
|
(13,965 | ) | |||||||
Other,
net
|
-
|
723
|
723
|
|||||||||
Depreciation
and amortization
|
(6,681 | ) |
6,681
|
-
|
||||||||
Total
other expense, net
|
(31,044 | ) |
7,266
|
(23,778 | ) | |||||||
Loss
from continuing operations before taxes
|
(11,933 | ) |
-
|
(11,933 | ) | |||||||
Income
tax (expense) benefit
|
(11 | ) |
-
|
(11 | ) | |||||||
Loss
from continuing operations
|
$ | (11,944 | ) | $ |
-
|
$ | (11,944 | ) |
Summerville
|
Summerville
|
|||||||||||
As
Reported
|
Reclassifications
|
Reclassified
|
||||||||||
ASSETS
|
||||||||||||
Current
Assets:
|
||||||||||||
Cash
and cash equivalents
|
$ |
8,081
|
$ |
-
|
$ |
8,081
|
||||||
Trade
accounts receivable, net
|
1,291
|
-
|
1,291
|
|||||||||
Prepaid
expenses and other current assets
|
8,850
|
-
|
8,850
|
|||||||||
Total
current assets
|
18,222
|
-
|
18,222
|
|||||||||
Restricted
cash
|
8,689
|
(8,689 | ) |
-
|
||||||||
Notes
receivable
|
1,251
|
(1,251 | ) |
-
|
||||||||
Property
and equipment, net
|
340,236
|
340,236
|
||||||||||
Deferred
financing costs, net
|
2,964
|
(2,964 | ) |
-
|
||||||||
Leasehold
acquisition costs, net
|
19,691
|
19,691
|
||||||||||
Goodwill
|
14,770
|
14,770
|
||||||||||
Deposits
and other assets
|
10,955
|
12,904
|
23,859
|
|||||||||
Total
Assets
|
$ |
416,778
|
$ |
-
|
$ |
416,778
|
||||||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
||||||||||||
Current
liabilities:
|
||||||||||||
Trade
accounts payable and other accrued expenses
|
$ |
34,564
|
(29,025 | ) | $ |
5,539
|
||||||
Current
portion of long-term debt
|
5,235
|
5,235
|
||||||||||
Accrued
employee compensation
|
-
|
10,484
|
10,484
|
|||||||||
Other
accrued expenses and liabilities
|
-
|
18,541
|
18,541
|
|||||||||
Total
current liabilities
|
39,799
|
-
|
39,799
|
|||||||||
Long-term
debt, net
|
101,431
|
(79,540 | ) |
21,891
|
||||||||
Financing
obligations, net
|
308,878
|
47,154
|
356,032
|
|||||||||
Long-term
debt payable to Apollo
|
69,530
|
79,540
|
149,070
|
|||||||||
Capital
lease obligations, net
|
47,154
|
(47,154 | ) |
-
|
||||||||
Deferred
rent
|
12,477
|
(12,477 | ) |
-
|
||||||||
Other
long-term liabilities
|
137
|
12,477
|
12,614
|
|||||||||
Total
Liabilities
|
579,406
|
-
|
579,406
|
|||||||||
Stockholders'
deficit:
|
||||||||||||
Common
stock
|
-
|
-
|
-
|
|||||||||
Convertible
preferred stock
|
28
|
-
|
28
|
|||||||||
Additional
paid-in capital
|
83,419
|
-
|
83,419
|
|||||||||
Accumulated
deficit
|
(246,075 | ) |
-
|
(246,075 | ) | |||||||
Total
Stockholders' Deficit
|
(162,628 | ) |
-
|
(162,628 | ) | |||||||
Total
Liabilities and Stockholders' Deficit
|
$ |
416,778
|
$ |
-
|
$ |
416,778
|