SEC Filings

10-12G/A
AMSURG CORP filed this Form 10-12G/A on 11/03/1997
Entire Document
 
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expense and other operating expenses represented in the aggregate approximately
61% of revenues in 1995 as compared to approximately 66% of revenues in 1994 as
a result of the margin contribution of additional centers in operation.
 
     Depreciation and amortization expense increased by $1,088,000, or 83%, for
1995 over 1994, due primarily to the acquisition of majority interests in
additional practice-based ambulatory surgery centers and from new start-up
centers placed in operation. The increase in interest expense from $193,000 in
1994 to $722,000 in 1995 was primarily attributable to debt assumed or incurred
in connection with additional acquisitions of interests in centers plus the
interest expense associated with newly opened start-up centers financed
partially with bank debt.
 
     Minority partners' interest in center earnings for 1995 rose to $3,938,000
from $2,468,000 in 1994, an increase of 60%, primarily as a result of minority
partners' interest in earnings at surgery centers added to operations and from
increased same-center profitability.
 
     Income tax expense increased to $578,000 in 1995 from $26,000 in 1994 as a
result of increased income before income taxes and an increase in AmSurg's
effective income tax rate to 36% from 4%. The increase in the effective income
tax rate resulted from the utilization of prior period net operating loss
carryforwards to eliminate federal income taxes for 1994 and to reduce federal
income taxes in 1995. The difference between the federal statutory income tax
rate of 34% and AmSurg's effective income tax rates in 1995 and 1994 was due
primarily to the utilization of prior period net operating loss carryforwards
and the impact of state income taxes.
 
LIQUIDITY AND CAPITAL RESOURCES
 
   
     Operating activities for 1996 and the nine month period ended September 30,
1997 generated $8,912,000 and $9,713,000, respectively, in cash flow. Investing
activities during 1996 used $16,395,000, including $12,670,000 used to acquire
interests in additional practice-based ambulatory surgery centers and the
interest in the Florida physician practice, and $3,863,000 to acquire property
and equipment for new start-up surgery centers and for new or replacement
property at existing centers. Investing activities during the nine month period
ended September 30, 1997 used $18,350,000, including $12,626,000 used to acquire
interests in five additional surgery centers and an interest in the urology
physician practice and $7,738,000 to acquire property and equipment for new
start-up surgery centers and for new or replacement property at existing centers
which were partially offset by $1,978,000 in proceeds from the sale of a surgery
center building and equipment and the sale of a partnership interest in two
surgery centers. Financing activities for 1996 provided $7,206,000 in cash flow,
primarily as a result of (i) net additions to long-term debt of $3,283,000, (ii)
minority partner capital contributions to AmSurg's partnerships and limited
liability companies of $1,681,000, (iii) $2,366,000 in cash proceeds from the
issuance of common stock, and (iv) net proceeds of $4,960,000 from the issuance
of preferred stock; these financing proceeds were partially offset by $5,084,000
in distributions to surgery center minority partners. Financing activities for
the nine month period September 30, 1997 provided $9,070,000 in cash flow,
primarily as a result of (i) net additions to long-term debt of $15,533,000,
(ii) minority partner capital contributions to AmSurg's partnerships and limited
liability companies of $2,289,000 and (iii) $494,000 in cash proceeds from the
issuance of common stock; these financing proceeds were partially offset by
$6,342,000 in distributions to surgery center minority partners. At September
30, 1997, AmSurg had $3,343,000 in outstanding term loan borrowings under its
amended and restated bank credit agreement which is repayable through June 2000.
AmSurg also had outstanding borrowings of $16,988,000 under a related revolving
credit facility which provides up to $25,000,000 in available credit through
April 1999 for acquisition and development projects. Borrowings under the bank
credit agreement and related credit facility bear interest at a rate equal to
the prime rate or 1.75% above LIBOR or a combination thereof at AmSurg's option,
plus a .35% fee for unused commitments. At September 30, 1997, AmSurg
partnerships and limited liability companies had unfunded construction and
equipment purchase commitments for centers under development of approximately
$3,100,000. Of the $3,100,000, AmSurg expects that approximately $2,100,000 will
be borrowed under AmSurg's credit facility (and guaranteed on a pro rata basis
by the physicians), and that the remaining amount will be provided by AmSurg and
the physician partners in proportion to their respective ownership interests.
AmSurg intends to fund its portion out of cash flow from operations.
    
 
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