SEC Filings

10-12G/A
AMSURG CORP filed this Form 10-12G/A on 11/03/1997
Entire Document
 
<PAGE>   103
 
                                  AMSURG CORP.
 
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
   
less than the carrying value of the long-lived assets attributable to this
partnership. Accordingly, an impairment loss equal to the excess of the carrying
value of the long-lived assets over the present value of the estimated future
cash flows was recorded in March 1997 in accordance with Statement of Financial
Accounting Standards No. 121 "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed of." In September 1997, when the
Company sold its interest in the partnership assets to its physician partner it
recognized a partial loss recovery. The net loss associated with these
transactions is $1,954,000.
    
 
   
       In July 1997, the Company sold a surgery center building and equipment
which the Company leased to a physician practice located in Tennessee and
recognized a pretax gain of approximately $460,000. In July 1997, the Company
also terminated its management agreement with the physician practice for the
surgery center in which it had no ownership interest but had managed since 1994.
    
 
     b. Long-Term Debt
 
   
       In September 1997, the Company executed an amended and restated credit
agreement with two lending institutions. Under the new agreement, the terms and
conditions of the term loan (approximately $3.3 million at September 30, 1997)
remain unchanged. In addition, the credit agreement permits the Company to
borrow up to $25,000,000 to finance AmSurg acquisitions and development
projects. All borrowings under this agreement bear interest at prime or 1.75%
above LIBOR or a combination thereof. The agreement provides for a fee of .35%
on unused commitments and all outstanding borrowings are to be repaid April 15,
1999. The agreement contains covenants relating to the ratio of debt to net
worth, operating performance and minimum net worth and prohibits the payment of
dividends to common stockholders. Borrowings under the $25,000,000 credit
agreement totaled $16,987,657 at September 30, 1997.
    
 
   
     c. Public Distribution of Common Stock
    
 
   
       In 1997, the Board of Directors of AmSurg approved an agreement pursuant
to which AHC will distribute on a substantially tax-free basis all of the shares
of the Company's common stock owned by AHC to the holders of AHC common stock
("the Distribution"). In the third quarter of 1997, the Company expensed
$458,000 for its proportionate share of costs incurred to date associated with
the Distribution.
    
 
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