SEC Filings

10-12G/A
AMSURG CORP filed this Form 10-12G/A on 05/09/1997
Entire Document
 
<PAGE>   99
 
                                  AMSURG CORP.
 
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
     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.
 
     The future minimum lease commitments at December 31, 1996 for all
noncancelable operating leases are as follows:
 

<TABLE>
<S>                                                           <C>
Year ended December 31:
          1997..............................................  $ 2,390,577
          1998..............................................    2,330,537
          1999..............................................    2,086,174
          2000..............................................    1,700,772
          2001..............................................    1,310,453
          Thereafter........................................    3,522,570
                                                              -----------
                                                              $13,341,083
                                                              ===========
</TABLE>

 
   
     At December 31, 1996, AmSurg partnerships had unfunded construction and
equipment purchase commitments for centers under development of approximately
$2,000,000.
    
 
   
     The Company and its partnerships are insured with respect to medical
malpractice risk on a claims made basis. Management is not aware of any claims
against it or its partnerships which would have a material financial impact.
    
 
   
     The Company or its wholly-owned subsidiaries, as general partners in the
limited partnerships, are responsible for all debts incurred but unpaid by the
partnership. As manager of the operations of the partnership, the Company has
the ability to limit its potential liabilities by curtailing operations or
taking other operating actions.
    
 
   
     In the event of a change in current law which would prohibit the
physicians' current form of ownership in the partnerships or LLCs, the Company
is obligated to purchase the physicians' interests in the partnerships or LLCs.
The purchase price to be paid in such event is generally the greater of the
physicians' capital account or a multiple of earnings.
    
 
9.  SUBSEQUENT EVENTS
 
     In two separate transactions in January 1997, the Company acquired a
majority interest in a physician practice-based surgery center and a physician
practice and related entities. The purchase price paid for the interests
acquired was $4,928,110 which consisted of cash of $4,227,747 and AmSurg common
stock valued at $700,363. With these transactions, the Company acquired assets
of $561,517, liabilities assumed of $346,033 and excess cost over net assets of
purchased operations of $4,712,626.
 
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