SEC Filings

10-12G
AMSURG CORP filed this Form 10-12G on 03/11/1997
Entire Document
 
<PAGE>   93
 
                                  AMSURG CORP.
 
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
     The following table summarizes information concerning outstanding and
exercisable options at December 31, 1996:
 

<TABLE>
<CAPTION>
                           OPTIONS OUTSTANDING             OPTIONS EXERCISABLE
                   ------------------------------------   ----------------------
                                  WEIGHTED     WEIGHTED                 WEIGHTED
                                   AVERAGE     AVERAGE                  AVERAGE
    RANGE OF         NUMBER       REMAINING    EXERCISE     NUMBER      EXERCISE
 EXERCISE PRICES   OUTSTANDING   LIFE (YRS.)    PRICE     EXERCISABLE    PRICE
 ---------------   -----------   -----------   --------   -----------   --------
<C>                <C>           <C>           <C>        <C>           <C>
 $ .25 -- $ .50     1,032,000        5.3        $ .25      1,032,000     $ .25
   .50 --  1.00       652,600        6.3          .86        553,200       .85
  1.00 --  1.50       346,500        8.1         1.11        147,000      1.11
  1.50 --  1.79       689,250        9.3         1.67              0       N/A
                    ---------                              ---------
   .25 --  1.79     2,720,350        6.9          .87      1,732,200       .52
                    =========                              =========
</TABLE>

 
     The Company accounts for its stock options pursuant to Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees."
Accordingly, no compensation expense has been recognized in connection with the
issuance of stock options. The estimated weighted average fair values of the
options at the date of grant using the Black-Scholes option pricing model as
promulgated by Financial Accounting Standard No. 123, "Accounting for Stock
Based Compensation" in 1995 and 1996 were $.60 and $.91 per share, respectively.
In applying the Black-Scholes model, the Company assumed no dividends, an
expected life for the options of seven years and a forfeiture rate of 3% in both
1995 and 1996 and an average risk free interest rate of 6.6% in 1995 and 6.2% in
1996. The Company also assumed a volatility rate based upon an average of
comparable companies of 46% and 49% in 1995 and 1996, respectively. Had the
Company used the Black-Scholes estimates to determine compensation expense for
the options granted in 1995 and 1996, net income and net income per share
attributable to common shareholders would have been reduced to the following pro
forma amounts.
 

<TABLE>
<CAPTION>
                                                              YEAR ENDED DECEMBER 31,
                                                              ------------------------
                                                                 1995          1996
                                                              ----------    ----------
<S>                                                           <C>           <C>
Net income attributable to common shareholders
  As reported...............................................  $1,048,040    $1,453,874
  Pro forma.................................................   1,028,040     1,241,874
Net income per share attributable to common shareholders
  As reported...............................................         .04           .05
  Pro forma.................................................         .04           .05
</TABLE>

 
     In 1994, the Company issued warrants to purchase its common stock to AHC.
These warrants were exercised February 26, 1996 for 257,720 shares at $.90 per
share. The warrants were issued in return for AHC's prior guaranty of Company
debt.
 
8.  COMMITMENTS AND CONTINGENCIES
 
     The Company has various lease agreements for its surgery centers in
operation and under development and for office space including a sublease with
AHC (see Note 3). Rent expense under such lease agreements for the years ended
December 31, 1994, 1995 and 1996 was approximately $772,000, $1,201,000 and
$1,775,000, respectively.
 
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