| Delaware (State or other jurisdiction of incorporation or organization) | | | 8082 (Primary Standard Industrial Classification Code Number) | | | 82-5064049 (I.R.S. Employer Identification No.) | |
| Tracey A. Zaccone, Esq. Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas New York, New York 10019 Telephone: (212) 373-3000 | | | Ilir Mujalovic, Esq. Shearman & Sterling LLP 599 Lexington Avenue New York, New York 10022 Telephone: (212) 848-5313 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☐ | |
| | | | Emerging growth company ☒ | |
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Title of Each Class of Securities to be Registered | | | | Proposed Maximum Aggregate Offering Price(1)(2) | | | | Amount of Registration Fee(3) | | ||||||
Common Stock, par value $0.001 per share | | | | | $ | 100,000,000 | | | | | | $ | 10,910 | | |
| | | Per Share | | | Total | | ||||||
Public offering price | | | | $ | | | | | | $ | | | |
Underwriting discount(1) | | | | $ | | | | | | $ | | | |
Proceeds, before expenses, to us | | | | $ | | | | | | $ | | | |
| BofA Securities | | | Jefferies | | | UBS Investment Bank | | | Truist Securities | |
| Baird | | | RBC Capital Markets | |
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| | | | | F-1 | | |
| | Three Months Ended March 31, | | Year Ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Summary Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Revenues | | | $ | 142,003 | | | | $ | 110,842 | | | | $ | 503,183 | | | | $ | 408,304 | | | | | $ | 293,075 | | | | $ | 230,924 | | | | $ | 503,183 | | | | $ | 408,304 | | | ||||||||
Cost of revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Product and supply costs | | | | 18,955 | | | | | 15,357 | | | | | 69,698 | | | | | 57,352 | | | | | | 41,805 | | | | | 30,754 | | | | | 69,698 | | | | | 57,352 | | | ||||||||
Patent service equipment depreciation | | | | 19,177 | | | | | 16,648 | | | | | 68,872 | | | | | 57,610 | | | | | | 39,109 | | | | | 33,040 | | | | | 68,872 | | | | | 57,610 | | | ||||||||
Operating expenses | | | | 16,032 | | | | | 14,690 | | | | | 59,559 | | | | | 53,134 | | | | | | 33,049 | | | | | 28,727 | | | | | 59,559 | | | | | 53,134 | | | ||||||||
Total cost of revenues | | | | 54,164 | | | | | 46,695 | | | | | 198,129 | | | | | 168,096 | | | | | | 113,963 | | | | | 92,521 | | | | | 198,129 | | | | | 168,096 | | | ||||||||
Gross profit | | | | 87,839 | | | | | 64,147 | | | | | 305,054 | | | | | 240,208 | | | | | | 179,112 | | | | | 138,403 | | | | | 305,054 | | | | | 240,208 | | | ||||||||
Gross Margin | | | | 61.9% | | | | | 57.9% | | | | | 60.6% | | | | | 58.8% | | | | | | 61.1% | | | | | 59.9% | | | | | 60.6% | | | | | 58.8% | | | ||||||||
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Selling, general and administrative | | | | 59,222 | | | | | 48,276 | | | | | 221,838 | | | | | 183,967 | | | | | | 123,222 | | | | | 103,405 | | | | | 221,838 | | | | | 183,967 | | | ||||||||
Depreciation and amortization | | | | 2,805 | | | | | 1,297 | | | | | 7,913 | | | | | 5,190 | | | | | | 5,676 | | | | | 2,884 | | | | | 7,913 | | | | | 5,190 | | | ||||||||
Total expenses | | | | 62,027 | | | | | 49,573 | | | | | 229,751 | | | | | 189,157 | | | | | | 128,898 | | | | | 106,289 | | | | | 229,751 | | | | | 189,157 | | | ||||||||
Operating income | | | | 25,812 | | | | | 14,574 | | | | | 75,303 | | | | | 51,051 | | | | | | 50,214 | | | | | 32,114 | | | | | 75,303 | | | | | 51,051 | | | ||||||||
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Interest expense, net | | | | 8,301 | | | | | 14,619 | | | | | 45,661 | | | | | 52,481 | | | | | | 16,624 | | | | | 25,321 | | | | | 45,661 | | | | | 52,481 | | | ||||||||
Loss on debt refinance | | | | — | | | | | — | | | | | 1,700 | | | | | 4,637 | | | | | | — | | | | | — | | | | | 1,700 | | | | | 4,637 | | | ||||||||
Other (income) expense, net | | | | (7) | | | | | 54 | | | | | 145 | | | | | (722) | | | | | | (35) | | | | | 45 | | | | | 145 | | | | | (722) | | | ||||||||
Total other expense | | | | 8,294 | | | | | 14,673 | | | | | 47,506 | | | | | 56,396 | | | | | | 16,589 | | | | | 25,366 | | | | | 47,506 | | | | | 56,396 | | | ||||||||
Income (loss) before income taxes | | | | 17,518 | | | | | (99) | | | | | 27,797 | | | | | (5,345) | | | | | | 33,625 | | | | | 6,748 | | | | | 27,797 | | | | | (5,345) | | | ||||||||
Income tax expense (benefit) | | | | 4,674 | | | | | 97 | | | | | (91,363) | | | | | (9,148) | | | | | | 8,898 | | | | | (1,631) | | | | | (91,363) | | | | | (9,148) | | | ||||||||
Net income (loss) | | | $ | 12,844 | | | | $ | (196) | | | | $ | 119,160 | | | | $ | 3,803 | | | | | $ | 24,727 | | | | $ | 8,379 | | | | $ | 119,160 | | | | $ | 3,803 | | | ||||||||
Basic and diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Net income (loss) per share(1) | | | $ | 1.61 | | | | $ | (0.02) | | | | $ | 14.90 | | | | $ | 0.48 | | | | | $ | 3.09 | | | | $ | 1.05 | | | | $ | 14.90 | | | | $ | 0.48 | | | ||||||||
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Basic and diluted(2) | | | | 8,000.00 | | | | | 8,000.00 | | | | | 8,000.00 | | | | | 8,000.00 | | | | | | 8,000,000 | | | | | 8,000,000 | | | | | 8,000,000 | | | | | 8,000,000 | | |
| | | As of March 31, | | | As of December 31, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Summary Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | $ | 140,918 | | | | | $ | 130,986 | | | | | $ | 129,625 | | | | | $ | 116,944 | | |
Property and equipment, net | | | | | 189,733 | | | | | | 141,179 | | | | | | 177,707 | | | | | | 137,413 | | |
Total assets | | | | | 697,764 | | | | | | 534,442 | | | | | | 668,510 | | | | | | 516,958 | | |
Current liabilities | | | | | 150,202 | | | | | | 125,674 | | | | | | 147,880 | | | | | | 112,986 | | |
Other long-term liabilities | | | | | 11,124 | | | | | | 9,762 | | | | | | 11,155 | | | | | | 6,732 | | |
Deferred tax liability | | | | | — | | | | | | 23,370 | | | | | | — | | | | | | 23,370 | | |
Debt, less current portion | | | | | 493,836 | | | | | | 465,234 | | | | | | 479,717 | | | | | | 463,272 | | |
Total liabilities | | | | | 655,162 | | | | | | 624,040 | | | | | | 638,752 | | | | | | 606,360 | | |
Total stockholders’ equity (deficit) | | | | | 42,602 | | | | | | (89,598) | | | | | | 29,758 | | | | | | (89,402) | | |
| | | Three Months Ended March 31, | | | Year Ended December 31, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Operational and Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA(1) | | | | $ | 47,801 | | | | | $ | 32,465 | | | | | $ | 150,243 | | | | | $ | 109,936 | | |
Adjusted EBITDA(1) | | | | | 48,440 | | | | | | 32,568 | | | | | | 152,615 | | | | | | 115,651 | | |
Adjusted EBITDA Margin(1) | | | | | 34.1% | | | | | | 29.4% | | | | | | 30.3% | | | | | | 28.3% | | |
Adjusted EBITDA less Base Patient Capex(1) | | | | | 32,310 | | | | | | 21,585 | | | | | | 99,321 | | | | | | 65,284 | | |
Adjusted EBITDA less Base Patient Capex Margin(1) | | | | | 22.8% | | | | | | 19.5% | | | | | | 19.7% | | | | | | 16.0% | | |
| | | As of June 30, | | | As of December 31, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Summary Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | $ | 142,567 | | | | | $ | 150,661 | | | | | $ | 129,625 | | | | | $ | 116,944 | | |
Property and equipment, net | | | | | 192,790 | | | | | | 146,688 | | | | | | 177,707 | | | | | | 137,413 | | |
Total assets | | | | | 721,373 | | | | | | 574,590 | | | | | | 668,510 | | | | | | 516,958 | | |
Current liabilities | | | | | 143,607 | | | | | | 138,656 | | | | | | 147,880 | | | | | | 112,986 | | |
Other long-term liabilities | | | | | 11,205 | | | | | | 10,781 | | | | | | 11,155 | | | | | | 6,732 | | |
Deferred tax liability | | | | | — | | | | | | 23,370 | | | | | | — | | | | | | 23,370 | | |
Debt, less current portion | | | | | 512,076 | | | | | | 482,806 | | | | | | 479,717 | | | | | | 463,272 | | |
Total liabilities | | | | | 666,888 | | | | | | 655,613 | | | | | | 638,752 | | | | | | 606,360 | | |
Total stockholders’ equity (deficit) | | | | | 54,485 | | | | | | (81,023) | | | | | | 29,758 | | | | | | (89,402) | | |
| | | Six Months Ended June 30, | | | Year Ended December 31, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Operational and Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA(1) | | | | $ | 95,034 | | | | | $ | 67,993 | | | | | $ | 150,243 | | | | | $ | 109,936 | | |
Adjusted EBITDA(1) | | | | | 100,189 | | | | | | 68,211 | | | | | | 152,615 | | | | | | 115,651 | | |
Adjusted EBITDA Margin(1) | | | | | 34.2% | | | | | | 29.5% | | | | | | 30.3% | | | | | | 28.3% | | |
Adjusted EBITDA less Base Patient Capex(1) | | | | | 70,536 | | | | | | 46,033 | | | | | | 99,321 | | | | | | 65,284 | | |
Adjusted EBITDA less Base Patient Capex Margin(1) | | | | | 24.1% | | | | | | 19.9% | | | | | | 19.7% | | | | | | 16.0% | | |
| | Three Months Ended March 31, | | Year ended December 31, | | | Six Months Ended June 30, | | Year ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Net income | | | $ | 12,844 | | | | $ | (196) | | | | $ | 119,160 | | | | $ | 3,803 | | | | | $ | 24,727 | | | | $ | 8,379 | | | | $ | 119,160 | | | | $ | 3,803 | | | ||||||||
Interest expense(1) | | | | 8,301 | | | | | 14,619 | | | | | 45,661 | | | | | 52,481 | | | | | | 16,624 | | | | | 25,321 | | | | | 45,661 | | | | | 52,481 | | | ||||||||
Income tax (benefit)(2) | | | | 4,674 | | | | | 97 | | | | | (91,363) | | | | | (9,148) | | | | | | 8,898 | | | | | (1,631) | | | | | (91,363) | | | | | (9,148) | | | ||||||||
Depreciation and amortization(3) | | | | 21,982 | | | | | 17,945 | | | | | 76,785 | | | | | 62,800 | | | | | | 44,785 | | | | | 35,924 | | | | | 76,785 | | | | | 62,800 | | | ||||||||
EBITDA | | | | 47,801 | | | | | 32,465 | | | | $ | 150,243 | | | | $ | 109,936 | | | | | | 95,034 | | | | | 67,993 | | | | $ | 150,243 | | | | $ | 109,936 | | | ||||||||
Loss on debt refinance(4) | | | | — | | | | | — | | | | | 1,700 | | | | | 4,637 | | | | | | — | | | | | — | | | | | 1,700 | | | | | 4,637 | | | ||||||||
Adjustments(5) | | | | 639 | | | | | 103 | | | | | 672 | | | | | 1,078 | | | | | | 5,155 | | | | | 218 | | | | | 672 | | | | | 1,078 | | | ||||||||
Adjusted EBITDA | | | | 48,440 | | | | | 32,568 | | | | $ | 152,615 | | | | $ | 115,651 | | | | | | 100,189 | | | | | 68,211 | | | | $ | 152,615 | | | | $ | 115,651 | | | ||||||||
Adjusted EBITDA Margin(6) | | | | 34.1% | | | | | 29.4% | | | | | 30.3% | | | | | 28.3% | | | | | | 34.2% | | | | | 29.5% | | | | | 30.3% | | | ��� | | | 28.3% | | |
| | Three Months Ended March 31, | | Year ended December 31, | | | Six Months Ended June 30, | | Year ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | | | $ | 48,440 | | | | $ | 32,568 | | | | $ | 152,615 | | | | $ | 115,651 | | | | | $ | 100,189 | | | | $ | 68,211 | | | | $ | 152,615 | | | | $ | 115,651 | | | ||||||||
Revenue | | | | 142,003 | | | | | 110,842 | | | | | 503,183 | | | | | 408,304 | | | | | | 293,075 | | | | | 230,924 | | | | | 503,183 | | | | | 408,304 | | | ||||||||
Adjusted EBITDA Margin | | | | 34.1% | | | | | 29.4% | | | | | 30.3% | | | | | 28.3% | | | | | | 34.2% | | | | | 29.5% | | | | | 30.3% | | | | | 28.3% | | |
| | Three Months Ended March | | Years Ended December 31 | | | Six Months Ended June 30, | | Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Net cash provided by operating activities | | | $ | 41,143 | | | | $ | 31,057 | | | | $ | 139,096 | | | | $ | 100,443 | | | | | $ | 67,262 | | | | $ | 73,638 | | | | $ | 139,096 | | | | $ | 100,443 | | | ||||||||
Gain on sales of property and equipment | | | | 424 | | | | | 28 | | | | | 552 | | | | | 996 | | | | | | 583 | | | | | 40 | | | | | 552 | | | | | 996 | | | ||||||||
Other | | | | — | | | | | — | | | | | 481 | | | | | — | | | | | | — | | | | | — | | | | | 481 | | | | | — | | | ||||||||
Changes in Operating Assets and Liabilities (excluding interest and taxes) | | | | 2,477 | | | | | (2,456) | | | | | (3,981) | | | | | 955 | | | | | | 18,490 | | | | | (12,996) | | | | | (3,981) | | | | | 955 | | | ||||||||
Interest Income | | | | (1) | | | | | (117) | | | | | (118) | | | | | (635) | | | | | | — | | | | | — | | | | | (118) | | | | | (635) | | | ||||||||
Interest Paid | | | | 3,743 | | | | | 3,940 | | | | | 15,933 | | | | | 12,736 | | | | | | 8,587 | | | | | 7,287 | | | | | 15,933 | | | | | 12,736 | | | ||||||||
Income Taxes Paid | | | | 15 | | | | | 13 | | | | | (20) | | | | | 78 | | | | | | 112 | | | | | 24 | | | | | (20) | | | | | 78 | | | ||||||||
Adjustments | | | | 639 | | | | | 103 | | | | | 672 | | | | | 1,078 | | | | | | 5,155 | | | | | 218 | | | | | 672 | | | | | 1,078 | | | ||||||||
Base Patient Capex(1) | | | | 16,130 | | | | | 10,983 | | | | | 53,294 | | | | | 50,367 | | | | | | 29,653 | | | | | 22,178 | | | | | 53,294 | | | | | 50,367 | | | ||||||||
Adjusted EBITDA less Base Patient Capex(2) | | | $ | 32,310 | | | | $ | 21,585 | | | | $ | 99,321 | | | | $ | 65,284 | | | | | $ | 70,536 | | | | $ | 46,033 | | | | $ | 99,321 | | | | $ | 65,284 | | | ||||||||
Adjusted EBITDA less Base Patient Capex Margin(3) | | | | 22.8% | | | | | 19.5% | | | | | 19.7% | | | | | 16.0% | | | | | | 24.1% | | | | | 19.9% | | | | | 19.7% | | | | | 16.0% | | |
| | Three Months Ended March 31, | | Year Ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Adjusted EBITDA less Base Patient Capex | | | $ | 32,310 | | | | $ | 21,585 | | | | $ | 99,321 | | | | $ | 65,284 | | | | | $ | 70,536 | | | | $ | 46,033 | | | | $ | 99,321 | | | | $ | 65,284 | | | ||||||||
Revenue | | | $ | 142,003 | | | | $ | 110,842 | | | | $ | 503,183 | | | | $ | 408,304 | | | | | $ | 293,075 | | | | $ | 230,924 | | | | $ | 503,183 | | | | $ | 408,304 | | | ||||||||
Adjusted EBITDA less Base Patient Capex Margin | | | | 22.8% | | | | | 19.5% | | | | | 19.7% | | | | | 16.0% | | | | | | 24.1% | | | | | 19.9% | | | | | 19.7% | | | | | 16.0% | | |
| | As of March 31, 2021 | | | As of June 30, 2021 | | ||||||||||||||||||||
(In thousands, except share and per share amounts) | | Actual | | As Adjusted(6) | | | Actual | | As Adjusted(6) | | ||||||||||||||||
Cash and cash equivalents | | | $ | 55,002 | | | | $ | | | | | $ | 47,815 | | | | $ | | | ||||||
Rotech Healthcare Inc. Credit Facility | | | $ | 343,813 | | | | $ | 343,813 | | | | | | 358,125 | | | | | 358,125 | | | ||||
Term Loan A(1) | | | | 330,813 | | | | | 330,813 | | | | | | 326,625 | | | | | 326,625 | | | ||||
Acquisition Revolving Credit Facility(2) | | | | 13,000 | | | | | 13,000 | | | | | | 31,500 | | | | | 31,500 | | | ||||
Working Capital Revolving Credit Facility(3) | | | | — | | | | | — | | | | | | — | | | | | — | | | ||||
Rotech Healthcare Holdings Credit Facility(4) | | | | 149,268 | | | | | — | | | | | | 154,174 | | | | | — | | | ||||
Capital Leases(5) | | | | 37,067 | | | | | 37,067 | | | | | | 39,913 | | | | | 39,913 | | | ||||
Rotech Healthcare Holdings Inc. common stock, par value $0.001 per share, 9,600,000 shares authorized, 8,000,000 shares issued and outstanding, actual; shares authorized, shares issued and outstanding, as adjusted | | | | 8 | | | | | | | | | | | 8 | | | | | | | | ||||
Additional paid-in capital | | | | 125,911 | | | | | | | | | | | 125,911 | | | | | | | | ||||
Accumulated deficit | | | | (83,317) | | | | | | | | | | | (71,434) | | | | | | | | ||||
Total stockholders’ equity | | | | 42,602 | | | | | | | | | | | 54,485 | | | | | | | | ||||
Total capitalization | | | $ | 572,750 | | | | $ | | | | | | $ | 606,697 | | | | $ | | | |
| Assumed initial public offering price per share of common stock | | | | | | | | | | $ | | | ||||
| Net tangible book value per share of common stock as of | | | | $ | | | | | | | | | ||||
| Increase in net tangible book value per share of common stock attributable to investors participating in this offering | | | | | | | | | | |||||||
| As adjusted net tangible book value per share of common stock after this offering | | | | | | | | | | |||||||
| Dilution per share of common stock to investors participating in this offering | | | | | | | | | | $ | | |
| | Shares of Common Stock Purchased | | Total Consideration | | | Average Price Per Share of Common Stock | | | Shares of Common Stock Purchased | | Total Consideration | | | Average Price Per Share of Common Stock | | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | | Number | | Percent | | Amount | | Percent | | | Number | | Percent | | Amount | | Percent | | | |||||||||||||||||||||||||||||||||||||
Pre-IPO owners | | | | | | % | | | | $ | | | | | | % | | | | $ | | | | | | | | | % | | | | $ | | | | | | % | | | | $ | | | |||||||||||
Investors in this offering | | | | | | % | | | | $ | | | | | | % | | | | $ | | | | | | | | % | | | | $ | | | | | % | | | | $ | | | |||||||||||||
Total | | | | | | 100% | | | | $ | | | | | | 100% | | | | $ | | | | | | | | | 100% | | | | $ | | | | | | 100% | | | | $ | | | |
| | | Three Months Ended March 31, | | | Year Ended December 31, | | ||||||||||||||||||
(in thousands, except per share data) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 142,003 | | | | | $ | 110,842 | | | | | $ | 503,183 | | | | | $ | 408,304 | | |
Operating income | | | | | 25,812 | | | | | | 14,574 | | | | | | 75,303 | | | | | | 51,051 | | |
Net income (loss) | | | | | 12,844 | | | | | | (196) | | | | | | 119,160 | | | | | | 3,803 | | |
Basic and diluted earnings (loss) per share | | | | $ | 1.61 | | | | | $ | (0.02) | | | | | $ | 14.90 | | | | | $ | 0.48 | | |
| | | As of March 31, | | | As of December 31, | | ||||||||||||||||||
(in thousands, except per share data) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Summary Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | $ | 140,918 | | | | | $ | 130,986 | | | | | $ | 129,625 | | | | | $ | 116,944 | | |
Property and equipment, net | | | | | 189,733 | | | | | | 141,179 | | | | | | 177,707 | | | | | | 137,413 | | |
Total assets | | | | | 697,764 | | | | | | 534,442 | | | | | | 668,510 | | | | | | 516,958 | | |
Current liabilities | | | | | 150,202 | | | | | | 125,674 | | | | | | 147,880 | | | | | | 112,986 | | |
Other long-term liabilities | | | | | 11,124 | | | | | | 9,762 | | | | | | 11,155 | | | | | | 6,732 | | |
Deferred tax liability | | | | | — | | | | | | 23,370 | | | | | | — | | | | | | 23,370 | | |
Debt, less current portion | | | | | 493,836 | | | | | | 465,234 | | | | | | 479,717 | | | | | | 463,272 | | |
Total liabilities | | | | | 655,162 | | | | | | 624,040 | | | | | | 638,752 | | | | | | 606,360 | | |
Total stockholders’ equity (deficit) | | | | | 42,602 | | | | | | (89,598) | | | | | | 29,758 | | | | | | (89,402) | | |
| | | Six Months Ended June 30, | | | Year Ended December 31, | | ||||||||||||||||||
(in thousands, except per share data) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | $ | 293,075 | | | | | $ | 230,924 | | | | | $ | 503,183 | | | | | $ | 408,304 | | |
Operating income | | | | | 50,214 | | | | | | 32,114 | | | | | | 75,303 | | | | | | 51,051 | | |
Net income | | | | | 24,727 | | | | | | 8,379 | | | | | | 119,160 | | | | | | 3,803 | | |
Basic and diluted earnings per share | | | | $ | 3.09 | | | | | $ | 1.05 | | | | | $ | 14.90 | | | | | $ | 0.48 | | |
| | | As of June 30, | | | As of December 31, | | ||||||||||||||||||
(in thousands, except per share data) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Summary Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | $ | 142,567 | | | | | $ | 150,661 | | | | | $ | 129,625 | | | | | $ | 116,944 | | |
Property and equipment, net | | | | | 192,790 | | | | | | 146,688 | | | | | | 177,707 | | | | | | 137,413 | | |
Total assets | | | | | 721,373 | | | | | | 574,590 | | | | | | 668,510 | | | | | | 516,958 | | |
Current liabilities | | | | | 143,607 | | | | | | 138,656 | | | | | | 147,880 | | | | | | 112,986 | | |
Other long-term liabilities | | | | | 11,205 | | | | | | 10,781 | | | | | | 11,155 | | | | | | 6,732 | | |
Deferred tax liability | | | | | — | | | | | | 23,370 | | | | | | — | | | | | | 23,370 | | |
Debt, less current portion | | | | | 512,076 | | | | | | 482,806 | | | | | | 479,717 | | | | | | 463,272 | | |
Total liabilities | | | | | 666,888 | | | | | | 655,613 | | | | | | 638,752 | | | | | | 606,360 | | |
Total stockholders’ equity (deficit) | | | | | 54,485 | | | | | | (81,023) | | | | | | 29,758 | | | | | | (89,402) | | |
| | Three Months Ended March 31, | | Year Ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Net income (loss) | | | $ | 12,844 | | | | $ | (196) | | | | $ | 119,160 | | | | $ | 3,803 | | | |||||||||||||||||||||||||||||
Net income | | | $ | 24,727 | | | | $ | 8,379 | | | | $ | 119,160 | | | | $ | 3,803 | | | |||||||||||||||||||||||||||||
Net cash provided by operating activities | | | $ | 41,143 | | | | $ | 31,057 | | | | $ | 139,096 | | | | $ | 100,443 | | | | | $ | 67,262 | | | | $ | 73,638 | | | | $ | 139,096 | | | | $ | 100,443 | | | ||||||||
EBITDA | | | | 47,801 | | | | | 32,465 | | | | $ | 150,243 | | | | $ | 109,936 | | | | | | 95,034 | | | | | 67,993 | | | | $ | 150,243 | | | | $ | 109,936 | | | ||||||||
Adjusted EBITDA | | | | 48,440 | | | | | 32,568 | | | | | 152,615 | | | | | 115,651 | | | | | | 100,189 | | | | | 68,211 | | | | | 152,615 | | | | | 115,651 | | | ||||||||
Adjusted EBITDA Margin | | | | 34.1% | | | | | 29.4% | | | | | 30.3% | | | | | 28.3% | | | | | | 34.2% | | | | | 29.5% | | | | | 30.3% | | | | | 28.3% | | | ||||||||
Adjusted EBITDA less Base Patient Capex | | | | 32,310 | | | | | 21,585 | | | | | 99,321 | | | | | 65,284 | | | | | | 70,536 | | | | | 46,033 | | | | | 99,321 | | | | | 65,284 | | | ||||||||
Adjusted EBITDA less Base Patient Capex Margin | | | | 22.8% | | | | | 19.5% | | | | | 19.7% | | | | | 16.0% | | | | | | 24.1% | | | | | 19.9% | | | | | 19.7% | | | | | 16.0% | | |
| | | Three Months Ended March 31, | | | Three Months Ended March 31, | | ||||||||||||||||||
(dollar amounts in thousands) | | | 2021 | | | 2020 | | | Change $ | | | Change % | | ||||||||||||
Revenues | | | | $ | 142,003 | | | | | $ | 110,842 | | | | | $ | 31,161 | | | | | | 28.1% | | |
Cost of Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product and supply costs | | | | | 18,955 | | | | | | 15,357 | | | | | | 3,598 | | | | | | 23.4% | | |
Patent service equipment depreciation | | | | | 19,177 | | | | | | 16,648 | | | | | | 2,529 | | | | | | 15.2% | | |
Operating expenses | | | | | 16,032 | | | | | | 14,690 | | | | | | 1,342 | | | | | | 9.1% | | |
Total cost of revenues | | | | | 54,164 | | | | | | 46,695 | | | | | | 7,469 | | | | | | 16.0% | | |
Gross profit | | | | | 87,839 | | | | | | 64,147 | | | | | | 23,692 | | | | | | 36.9% | | |
| | Three Months Ended March 31, | | Three Months Ended March 31, | | | Six Months Ended June 30, | | Six Months Ended June 30, | | ||||||||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | | 2021 | | 2020 | | Change $ | | Change % | | | 2021 | | 2020 | | Change $ | | Change % | | ||||||||||||||||||||||||||||||||
Revenues | | | $ | 293,075 | | | | $ | 230,924 | | | | $ | 62,151 | | | | | 26.9% | | | |||||||||||||||||||||||||||||
Cost of Revenues: | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Product and supply costs | | | | 41,805 | | | | | 30,754 | | | | | 11,051 | | | | | 35.9% | | | |||||||||||||||||||||||||||||
Patent service equipment depreciation | | | | 39,109 | | | | | 33,040 | | | | | 6,069 | | | | | 18.4% | | | |||||||||||||||||||||||||||||
Operating expenses | | | | 33,049 | | | | | 28,727 | | | | | 4,322 | | | | | 15.0% | | | |||||||||||||||||||||||||||||
Total cost of revenues | | | | 113,963 | | | | | 92,521 | | | | | 21,442 | | | | | 23.2% | | | |||||||||||||||||||||||||||||
Gross profit | | | | 179,112 | | | | | 138,403 | | | | | 40,709 | | | | | 29.4% | | | |||||||||||||||||||||||||||||
Gross Margin | | | | 61.9% | | | | | 57.9% | | | | | | | | | | | | | | | | 61.1% | | | | | 59.9% | | | | | | | | | | | | | ||||||||
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Selling, general and administrative | | | | 59,222 | | | | | 48,276 | | | | | 10,946 | | | | | 22.7% | | | | | | 123,222 | | | | | 103,405 | | | | | 19,817 | | | | | 19.2% | | | ||||||||
Depreciation and amortization | | | | 2,805 | | | | | 1,297 | | | | | 1,508 | | | | | 116.3% | | | | | | 5,676 | | | | | 2,884 | | | | | 2,792 | | | | | 96.8% | | | ||||||||
Total expenses | | | | 62,027 | | | | | 49,573 | | | | | 12,454 | | | | | 25.1% | | | | | | 128,898 | | | | | 106,289 | | | | | 22,609 | | | | | 21.3% | | | ||||||||
Operating income | | | | 25,812 | | | | | 14,574 | | | | | 11,238 | | | | | 77.1% | | | | | | 50,214 | | | | | 32,114 | | | | | 18,100 | | | | | 56.4% | | | ||||||||
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Interest expense, net | | | | 8,301 | | | | | 14,619 | | | | | (6,318) | | | | | (43.2)% | | | | | | 16,624 | | | | | 25,321 | | | | | (8,697) | | | | | (34.3)% | | | ||||||||
Other (income) expense, net | | | | (7) | | | | | 54 | | | | | (61) | | | | | (113.0)% | | | | | | (35) | | | | | 45 | | | | | (80) | | | | | (177.8)% | | | ||||||||
Total other expense | | | | 8,294 | | | | | 14,673 | | | | | (6,379) | | | | | (43.5)% | | | | | | 16,589 | | | | | 25,366 | | | | | (8,777) | | | | | (34.6)% | | | ||||||||
Income (loss) before income taxes | | | | 17,518 | | | | | (99) | | | | | 17,617 | | | | | (17,794.9)% | | | | | | 33,625 | | | | | 6,748 | | | | | 26,877 | | | | | 398.3% | | | ||||||||
Income tax expense | | | | 4,674 | | | | | 97 | | | | | 4,577 | | | | | 4,718.6% | | | | | | 8,898 | | | | | (1,631) | | | | | 10,529 | | | | | 645.6% | | | ||||||||
Net income | | | $ | 12,844 | | | | $ | (196) | | | | $ | 13,040 | | | | | (6,653.1)% | | | | | $ | 24,727 | | | | $ | 8,379 | | | | $ | 16,348 | | | | | 195.1% | | | ||||||||
|
| | Three Months Ended March 31, | | | Six Months Ended June 30, | | ||||||||||||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | | 2021 | | 2020 | | Change$ | | Change% | | | 2021 | | 2020 | | Change $ | | Change % | | ||||||||||||||||||||||||||||||||
Rental revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Oxygen | | | $ | 56,435 | | | | $ | 41,171 | | | | $ | 15,264 | | | | | 37.1% | | | | | $ | 112,739 | | | | $ | 85,265 | | | | $ | 27,474 | | | | | 32.2% | | | ||||||||
Ventilators | | | | 17,086 | | | | | 11,178 | | | | | 5,908 | | | | | 52.9% | | | | | | 36,634 | | | | | 24,978 | | | | | 11,656 | | | | | 46.7% | | | ||||||||
Sleep therapy | | | | 12,118 | | | | | 11,706 | | | | | 412 | | | | | 3.5% | | | | | | 25,326 | | | | | 23,406 | | | | | 1,920 | | | | | 8.2% | | | ||||||||
Wound care | | | | 3,207 | | | | | 1,376 | | | | | 1,831 | | | | | 133.1% | | | | | | 7,141 | | | | | 2,995 | | | | | 4,146 | | | | | 138.4% | | | ||||||||
Durable medical equipment | | | | 5,562 | | | | | 5,110 | | | | | 452 | | | | | 8.8% | | | | | | 11,293 | | | | | 10,513 | | | | | 780 | | | | | 7.4% | | | ||||||||
Sales revenues Oxygen | | | | 2,636 | | | | | 3,701 | | | | | (1,065) | | | | | (28.8)% | | | | | | 5,364 | | | | | 6,680 | | | | | (1,316) | | | | | (19.7)% | | | ||||||||
Sleep therapy | | | | 33,802 | | | | | 30,660 | | | | | 3,142 | | | | | 10.2% | | | | | | 70,386 | | | | | 64,873 | | | | | 5,513 | | | | | 8.5% | | | ||||||||
Wound care | | | | 5,531 | | | | | 455 | | | | | 5,076 | | | | | 1,115.6% | | | | | | 12,092 | | | | | 1,121 | | | | | 10,971 | | | | | 978.7% | | | ||||||||
Durable medical equipment | | | | 3,067 | | | | | 3,101 | | | | | (34) | | | | | (1.1)% | | | | | | 6,967 | | | | | 6,320 | | | | | 647 | | | | | 10.2% | | | ||||||||
Capitation revenues | | | | 2,559 | | | | | 2,384 | | | | | 175 | | | | | 7.3% | | | | | | 5,133 | | | | | 4,773 | | | | | 360 | | | | | 7.5% | | | ||||||||
| | | $ | 142,003 | | | | $ | 110,842 | | | | $ | 31,161 | | | | | 28.1% | | | | | $ | 293,075 | | | | $ | 230,924 | | | | $ | 62,151 | | | | | 26.9% | | |
| | Three Months Ended March 31, | | | Six Months Ended June 30, | | ||||||||||||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | | 2021 | | 2020 | | Change $ | | Change % | | | 2021 | | 2020 | | Change $ | | Change % | | ||||||||||||||||||||||||||||||||
Product and supply costs | | | $ | 18,955 | | | | $ | 15,357 | | | | $ | 3,598 | | | | | 23.4% | | | | | $ | 41,805 | | | | $ | 30,754 | | | | $ | 11,051 | | | | | 35.9% | | | ||||||||
Patient service equipment depreciation | | | | 19,177 | | | | | 16,648 | | | | | 2,529 | | | | | 15.2% | | | | | | 39,109 | | | | | 33,040 | | | | | 6,069 | | | | | 18.4% | | | ||||||||
Operating expenses | | | | 16,032 | | | | | 14,690 | | | | | 1,342 | | | | | 9.1% | | | | | | 33,049 | | | | | 28,727 | | | | | 4,322 | | | | | 15.0% | | | ||||||||
Total cost of revenues | | | $ | 54,164 | | | | $ | 46,695 | | | | $ | 7,469 | | | | | 16.0% | | | | | $ | 113,963 | | | | $ | 92,521 | | | | $ | 21,442 | | | | | 23.2% | | | ||||||||
Gross Margin | | | | 61.9% | | | | | 57.9% | | | | | | | | | | | | | | | | 61.1% | | | | | 59.9% | | | | | | | | | | | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
(dollar amounts in thousands) | | | 2020 | | | 2019 | | | Change $ | | | Change % | | ||||||||||||
Revenues | | | | $ | 503,183 | | | | | $ | 408,304 | | | | | $ | 94,879 | | | | | | 23.2% | | |
Cost of Revenues: | | | | | | ||||||||||||||||||||
Product and supply costs | | | | | 69,698 | | | | | | 57,352 | | | | | | 12,346 | | | | | | 21.5% | | |
Patent service equipment depreciation | | | | | 68,872 | | | | | | 57,610 | | | | | | 11,262 | | | | | | 19.5% | | |
Operating expenses . | | | | | 59,559 | | | | | | 53,134 | | | | | | 6,425 | | | | | | 12.1% | | |
Total cost of revenues | | | | | 198,129 | | | | | | 168,096 | | | | | | 30,033 | | | | | | 17.9% | | |
Gross profit | | | | | 305,054 | | | | | | 240,208 | | | | | | 64,846 | | | | | | 27.0% | | |
Gross Margin | | | | | 60.6% | | | | | | 58.8% | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 221,838 | | | | | | 183,967 | | | | | | 37,871 | | | | | | 20.6% | | |
Depreciation and amortization | | | | | 7,913 | | | | | | 5,190 | | | | | | 2,723 | | | | | | 52.5% | | |
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | | | | | 229,751 | | | | | | 189,157 | | | | | | 40,594 | | | | | | 21.5% | | |
Operating income | | | | | 75,303 | | | | | | 51,051 | | | | | | 24,252 | | | | | | 47.5% | | |
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . | | | | | 45,661 | | | | | | 52,481 | | | | | | (6,820) | | | | | | (13.0)% | | |
Loss on debt refinance . . . . . . . . . . . . . . . . . . . . . . . . . | | | | | 1,700 | | | | | | 4,637 | | | | | | (2,937) | | | | | | (63.3)% | | |
Other expense (income), net . . . . . . . . . . . . . . . . . . . . . . | | | | | 145 | | | | | | (722) | | | | | | 867 | | | | | | 120.1% | | |
Total other expense | | | | | 47,506 | | | | | | 56,396 | | | | | | (8,890) | | | | | | (15.8)% | | |
| | Year Ended December 31, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | | 2020 | | 2019 | | Change $ | | Change % | | | 2020 | | 2019 | | Change $ | | Change % | | ||||||||||||||||||||||||||||||||
Revenues | | | $ | 503,183 | | | | $ | 408,304 | | | | $ | 94,879 | | | | | 23.2% | | | |||||||||||||||||||||||||||||
Cost of Revenues: | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Product and supply costs | | | | 69,698 | | | | | 57,352 | | | | | 12,346 | | | | | 21.5% | | | |||||||||||||||||||||||||||||
Patent service equipment depreciation | | | | 68,872 | | | | | 57,610 | | | | | 11,262 | | | | | 19.5% | | | |||||||||||||||||||||||||||||
Operating expenses . | | | | 59,559 | | | | | 53,134 | | | | | 6,425 | | | | | 12.1% | | | |||||||||||||||||||||||||||||
Total cost of revenues | | | | 198,129 | | | | | 168,096 | | | | | 30,033 | | | | | 17.9% | | | |||||||||||||||||||||||||||||
Gross profit | | | | 305,054 | | | | | 240,208 | | | | | 64,846 | | | | | 27.0% | | | |||||||||||||||||||||||||||||
Gross Margin | | | | 60.6% | | | | | 58.8% | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Expenses: | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Selling, general and administrative | | | | 221,838 | | | | | 183,967 | | | | | 37,871 | | | | | 20.6% | | | |||||||||||||||||||||||||||||
Depreciation and amortization | | | | 7,913 | | | | | 5,190 | | | | | 2,723 | | | | | 52.5% | | | |||||||||||||||||||||||||||||
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | | | | 229,751 | | | | | 189,157 | | | | | 40,594 | | | | | 21.5% | | | |||||||||||||||||||||||||||||
Operating income | | | | 75,303 | | | | | 51,051 | | | | | 24,252 | | | | | 47.5% | | | |||||||||||||||||||||||||||||
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . | | | | 45,661 | | | | | 52,481 | | | | | (6,820) | | | | | (13.0)% | | | |||||||||||||||||||||||||||||
Loss on debt refinance . . . . . . . . . . . . . . . . . . . . . . . . . | | | | 1,700 | | | | | 4,637 | | | | | (2,937) | | | | | (63.3)% | | | |||||||||||||||||||||||||||||
Other expense (income), net . . . . . . . . . . . . . . . . . . . . . . | | | | 145 | | | | | (722) | | | | | 867 | | | | | 120.1% | | | |||||||||||||||||||||||||||||
Total other expense | | | | 47,506 | | | | | 56,396 | | | | | (8,890) | | | | | (15.8)% | | | |||||||||||||||||||||||||||||
Income (loss) before income taxes | | | | 27,797 | | | | | (5,345) | | | | | 33,142 | | | | | 620.1% | | | | | | 27,797 | | | | | (5,345) | | | | | 33,142 | | | | | 620.1% | | | ||||||||
Income tax benefit | | | | (91,363) | | | | | (9,148) | | | | | (82,215) | | | | | 898.7% | | | | | | (91,363) | | | | | (9,148) | | | | | (82,215) | | | | | 898.7% | | | ||||||||
Net income | | | $ | 119,160 | | | | $ | 3,803 | | | | $ | 115,357 | | | | | 3,033.3% | | | | | $ | 119,160 | | | | $ | 3,803 | | | | $ | 115,357 | | | | | 3,033.3% | | | ||||||||
|
| | | Year Ended December 31, | | |||||||||||||||||||||
(dollar amounts in thousands) | | | 2020 | | | 2019 | | | Change $ | | | Change % | | ||||||||||||
Rental revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Oxygen . . . . . | | | | $ | 184,388 | | | | | $ | 152,063 | | | | | $ | 32,325 | | | | | | 21.3% | | |
Ventilators . . . . | | | | | 57,986 | | | | | | 30,771 | | | | | | 27,215 | | | | | | 88.4% | | |
Sleep therapy . . . . | | | | | 46,987 | | | | | | 44,559 | | | | | | 2,428 | | | | | | 5.4% | | |
Wound care . . . . | | | | | 8,802 | | | | | | 2,003 | | | | | | 6,799 | | | | | | 339.4% | | |
Durable medical equipment | | | | | 21,620 | | | | | | 19,688 | | | | | | 1,932 | | | | | | 9.8% | | |
Sales revenues | | | | | | ||||||||||||||||||||
Oxygen . . . | | | | | 13,064 | | | | | | 15,399 | | | | | | (2,335) | | | | | | (15.2)% | | |
Sleep therapy | | | | | 135,950 | | | | | | 121,612 | | | | | | 14,338 | | | | | | 11.8% | | |
Wound care . . . . | | | | | 12,116 | | | | | | 709 | | | | | | 11,407 | | | | | | 1,608.9% | | |
Durable medical equipment | | | | | 12,650 | | | | | | 12,257 | | | | | | 393 | | | | | | 3.2% | | |
Capitation revenues | | | | | 9,620 | | | | | | 9,243 | | | | | | 377 | | | | | | 4.1% | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | | | | $ | 94,879 | | | | | | 23.2% | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
(dollar amounts in thousands) | | | 2020 | | | 2019 | | | Change $ | | | Change % | | ||||||||||||
Rental revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Oxygen . . . . . | | | | $ | 184,388 | | | | | $ | 152,063 | | | | | $ | 32,325 | | | | | | 21.3% | | |
Ventilators . . . . | | | | | 57,986 | | | | | | 30,771 | | | | | | 27,215 | | | | | | 88.4% | | |
Sleep therapy . . . . | | | | | 46,987 | | | | | | 44,559 | | | | | | 2,428 | | | | | | 5.4% | | |
Wound care . . . . | | | | | 8,802 | | | | | | 2,003 | | | | | | 6,799 | | | | | | 339.4% | | |
Durable medical equipment | | | | | 21,620 | | | | | | 19,688 | | | | | | 1,932 | | | | | | 9.8% | | |
Sales revenues | | | | | | ||||||||||||||||||||
Oxygen . . . | | | | | 13,064 | | | | | | 15,399 | | | | | | (2,335) | | | | | | (15.2)% | | |
Sleep therapy | | | | | 135,950 | | | | | | 121,612 | | | | | | 14,338 | | | | | | 11.8% | | |
Wound care . . . . | | | | | 12,116 | | | | | | 709 | | | | | | 11,407 | | | | | | 1,608.9% | | |
Durable medical equipment | | | | | 12,650 | | | | | | 12,257 | | | | | | 393 | | | | | | 3.2% | | |
Capitation revenues | | | | | 9,620 | | | | | | 9,243 | | | | | | 377 | | | | | | 4.1% | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | | | | $ | 94,879 | | | | | | 23.2% | | |
| | | Year Ended December 31, | | | Change | | | Change | | |||||||||||||||
(dollar amounts in thousands) | | | 2020 | | | 2019 | | | $ | | | % | | ||||||||||||
Product and supply costs | | | | $ | 69,698 | | | | | $ | 57,352 | | | | | $ | 12,346 | | | | | | 21.5% | | |
Patient service equipment depreciation | | | | | 68,872 | | | | | | 57,610 | | | | | | 11,262 | | | | | | 19.5% | | |
Operating expenses | | | | | 59,559 | | | | | | 53,134 | | | | | | 6,425 | | | | | | 12.1% | | |
Total cost of revenues | | | | $ | 198,129 | | | | | $ | 168,096 | | | | | $ | 30,033 | | | | | | 17.9% | | |
Gross Margin | | | | | 60.6% | | | | | | 58.8% | | | | | | | | | | | | | | |
| | Three Months Ended March 31, | | Year Ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Net income (loss) | | | $ | 12,844 | | | | $ | (196) | | | | $ | 119,160 | | | | $ | 3,803 | | | |||||||||||||||||||||||||||||
Net income | | | $ | 24,727 | | | | $ | 8,379 | | | | $ | 119,160 | | | | $ | 3,803 | | | |||||||||||||||||||||||||||||
Interest expense(1) | | | | 8,301 | | | | | 14,619 | | | | | 45,661 | | | | | 52,481 | | | | | | 16,624 | | | | | 25,321 | | | | | 45,661 | | | | | 52,481 | | | ||||||||
Income tax expense (benefit)(2) | | | | 4,674 | | | | | 97 | | | | | (91,363) | | | | | (9,148) | | | | | | 8,898 | | | | | (1,631) | | | | | (91,363) | | | | | (9,148) | | | ||||||||
Depreciation and amortization(3) | | | | 21,982 | | | | | 17,945 | | | | | 76,785 | | | | | 62,800 | | | | | | 44,785 | | | | | 35,924 | | | | | 76,785 | | | | | 62,800 | | | ||||||||
EBITDA | | | $ | 47,801 | | | | $ | 32,465 | | | | $ | 150,243 | | | | $ | 109,936 | | | | | $ | 95,034 | | | | $ | 67,993 | | | | $ | 150,243 | | | | $ | 109,936 | | | ||||||||
Loss on debt refinance(4) | | | | — | | | | | — | | | | | 1,700 | | | | | 4,637 | | | | | | — | | | | | — | | | | | 1,700 | | | | | 4,637 | | | ||||||||
Adjustments(5) | | | | 639 | | | | | 103 | | | | | 672 | | | | | 1,078 | | | | | | 5,155 | | | | | 218 | | | | | 672 | | | | | 1,078 | | | ||||||||
Adjusted EBITDA | | | $ | 48,440 | | | | $ | 32,568 | | | | $ | 152,615 | | | | $ | 115,651 | | | | | $ | 100,189 | | | | $ | 68,211 | | | | $ | 152,615 | | | | $ | 115,651 | | | ||||||||
Adjusted EBITDA Margin(6) | | | | 34.1% | | | | | 29.4% | | | | | 30.3% | | | | | 28.3% | | | | | | 34.2% | | | | | 29.5% | | | | | 30.3% | | | | | 28.3% | | |
| | Three Months Ended March 31, | | Year ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Net income (loss) | | | $ | 12,844 | | | | $ | (196) | | | | $ | 119,160 | | | | $ | 3,803 | | | | | $ | 24,727 | | | | $ | 8,379 | | | | $ | 119,160 | | | | $ | 3,803 | | | ||||||||
Revenue | | | | 142,003 | | | | | 110,842 | | | | | 503,183 | | | | | 408,304 | | | | | | 293,075 | | | | | 230,924 | | | | | 503,183 | | | | | 408,304 | | | ||||||||
Adjusted EBITDA | | | | 48,440 | | | | | 32,568 | | | | | 152,615 | | | | | 115,651 | | | | | | 100,189 | | | | | 68,211 | | | | | 152,615 | | | | | 115,651 | | | ||||||||
Adjusted EBITDA Margin | | | | 34.1% | | | | | 29.4% | | | | | 30.3% | | | | | 28.3% | | | | | | 34.2% | | | | | 29.5% | | | | | 30.3% | | | | | 28.3% | | |
| | Three Months Ended March | | Years Ended December 31 | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Net cash provided by operating activities | | | $ | 41,143 | | | | $ | 31,057 | | | | $ | 139,096 | | | | $ | 100,443 | | | | | $ | 67,262 | | | | $ | 73,638 | | | | $ | 139,096 | | | | $ | 100,443 | | | ||||||||
Gain on sales of property and equipment | | | | 424 | | | | | 28 | | | | | 552 | | | | | 996 | | | | | | 583 | | | | | 40 | | | | | 552 | | | | | 996 | | | ||||||||
Other | | | | — | | | | | — | | | | | 481 | | | | | — | | | | | | — | | | | | — | | | | | 481 | | | | | — | | | ||||||||
Changes in Operating Assets and Liabilities (excluding interest and taxes) | | | | 2,477 | | | | | (2,456) | | | | | (3,981) | | | | | 955 | | | | | | 18,490 | | | | | (12,996) | | | | | (3,981) | | | | | 955 | | | ||||||||
Interest Income | | | | (1) | | | | | (117) | | | | | (118) | | | | | (635) | | | | | | — | | | | | — | | | | | (118) | | | | | (635) | | | ||||||||
Interest Paid | | | | 3,743 | | | | | 3,940 | | | | | 15,933 | | | | | 12,736 | | | | | | 8,587 | | | | | 7,287 | | | | | 15,933 | | | | | 12,736 | | | ||||||||
Income Taxes Paid | | | | 15 | | | | | 13 | | | | | (20) | | | | | 78 | | | | | | 112 | | | | | 24 | | | | | (20) | | | | | 78 | | | ||||||||
Adjustments | | | | 639 | | | | | 103 | | | | | 672 | | | | | 1,078 | | | | | | 5,155 | | | | | 218 | | | | | 672 | | | | | 1,078 | | | ||||||||
Base Patient Capex(1) | | | | 16,130 | | | | | 10,983 | | | | | 53,294 | | | | | 50,367 | | | | | | 29,653 | | | | | 22,178 | | | | | 53,294 | | | | | 50,367 | | | ||||||||
Adjusted EBITDA less Base Patient Capex(2) | | | $ | 32,310 | | | | $ | 21,585 | | | | $ | 99,321 | | | | $ | 65,284 | | | | | $ | 70,536 | | | | $ | 46,033 | | | | $ | 99,321 | | | | $ | 65,284 | | | ||||||||
Adjusted EBITDA less Base Patient Capex Margin(3) | | | | 22.8% | | | | | 19.5% | | | | | 19.7% | | | | | 16.0% | | | | | | 24.1% | | | | | 19.9% | | | | | 19.7% | | | | | 16.0% | | |
| | Three Months Ended March 31, | | Year Ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Adjusted EBITDA less Base Patient Capex | | | $ | 32,310 | | | | $ | 21,585 | | | | $ | 99,321 | | | | $ | 65,284 | | | | | $ | 70,536 | | | | $ | 46,033 | | | | $ | 99,321 | | | | $ | 65,284 | | | ||||||||
Revenue | | | $ | 142,003 | | | | $ | 110,842 | | | | $ | 503,183 | | | | $ | 408,304 | | | |||||||||||||||||||||||||||||
Revenues | | | $ | 293,075 | | | | $ | 230,924 | | | | $ | 503,183 | | | | $ | 408,304 | | | |||||||||||||||||||||||||||||
Adjusted EBITDA less Base Patient Capex Margin | | | | 22.8% | | | | | 19.5% | | | | | 19.7% | | | | | 16.0% | | | | | | 24.1% | | | | | 19.9% | | | | | 19.7% | | | | | 16.0% | | |
Level | | | Consolidated Net Leverage Ratio | | | Applicable Margin for Adjusted LIBOR Loans | | | Applicable Margin for Alternative Base Rate Loans | | | Commitment Fee | | |||||||||
I | | | < 1.00:1.00 | | | | | 2.25% | | | | | | 1.25% | | | | | | 0.30% | | |
II | | | ≥ 1.00:1.00, but < 2.00:1.00 | | | | | 2.75% | | | | | | 1.75% | | | | | | 0.40% | | |
III | | | ≥ 2.00:1.00, but < 3.00:1.00 | | | | | 3.25% | | | | | | 2.25% | | | | | | 0.40% | | |
IV | | | ≥ 3.00:1.00 | | | | | 3.75% | | | | | | 2.75% | | | | | | 0.40% | | |
| | Three Months Ended March 31, | | Year Ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Net cash provided by operating activities | | | $ | 41,143 | | | | $ | 31,057 | | | | $ | 139,096 | | | | $ | 100,443 | | | | | $ | 67,262 | | | | $ | 73,638 | | | | $ | 139,096 | | | | $ | 100,443 | | | ||||||||
Net cash used in investing activities | | | | (40,151) | | | | | (14,003) | | | | | (108,054) | | | | | (59,445) | | | | | | (82,225) | | | | | (46,959) | | | | | (108,054) | | | | | (59,445) | | | ||||||||
Net provided by (cash used) in financing activities | | | | 1,888 | | | | | (6,591) | | | | | (31,586) | | | | | (30,979) | | | | | | 10,656 | | | | | 388 | | | | | (31,586) | | | | | (30,979) | | | ||||||||
Increase (decrease) in cash and cash equivalents | | | | 2,880 | | | | | 10,463 | | | | | (544) | | | | | 10,019 | | | |||||||||||||||||||||||||||||
(Decrease) increase in cash and cash equivalents | | | | (4,307) | | | | | 27,067 | | | | | (544) | | | | | 10,019 | | | |||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | | | | 52,122 | | | | | 52,666 | | | | | 52,666 | | | | | 42,647 | | | | | | 52,122 | | | | | 52,666 | | | | | 52,666 | | | | | 42,647 | | | ||||||||
Cash and cash equivalents at end of period | | | $ | 55,002 | | | | $ | 63,129 | | | | $ | 52,122 | | | | $ | 52,666 | | | | | $ | 47,815 | | | | $ | 79,733 | | | | $ | 52,122 | | | | $ | 52,666 | | |
| | Three Months Ended March 31, | | Year Ended December 31, | | | Six Months Ended June 30, | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | | 2021 | | 2020 | | 2020 | | 2019 | | 2018 | | 2017 | | | 2021 | | 2020 | | 2020 | | 2019 | | 2018 | | 2017 | | ||||||||||||||||||||||||||||||||||||||||||||||||
Growth Patient Capex | | | $ | 11.9 | | | | $ | 8.5 | | | | $ | 47.7 | | | | $ | 20.9 | | | | $ | 16.5 | | | | $ | 24.0 | | | | | $ | 18.2 | | | | $ | 16.6 | | | | $ | 47.7 | | | | $ | 20.9 | | | | $ | 16.5 | | | | $ | 24.0 | | | ||||||||||||
Base Patient Capex | | | $ | 16.1 | | | | $ | 11.0 | | | | $ | 53.3 | | | | $ | 50.4 | | | | $ | 40.3 | | | | $ | 36.2 | | | | | $ | 29.7 | | | | $ | 22.2 | | | | $ | 53.3 | | | | $ | 50.4 | | | | $ | 40.3 | | | | $ | 36.2 | | | ||||||||||||
Other Capex | | | $ | 2.8 | | | | $ | 1.9 | | | | $ | 8.8 | | | | $ | 11.2 | | | | $ | 4.7 | | | | $ | 3.5 | | | | | $ | 4.9 | | | | $ | 3.3 | | | | $ | 8.8 | | | | $ | 11.2 | | | | $ | 4.7 | | | | $ | 3.5 | | | ||||||||||||
Base Patient Capex % Revenue | | | | 11.4% | | | | | 9.9% | | | | | 10.6% | | | | | 12.3% | | | | | 11.0% | | | | | 10.6% | | | | | | 10.1% | | | | | 9.6% | | | | | 10.6% | | | | | 12.3% | | | | | 11.0% | | | | | 10.6% | | |
| | Less than | | More than | | | | | | | | Less than | | More than | | | | | | | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 1 Year | | 1-3 Years | | 3-5 Years | | 5 Years | | Total | | | 1 Year | | 1-3 Years | | 3-5 Years | | 5 Years | | Total | | ||||||||||||||||||||||||||||||||||||||||
Rotech Healthcare Inc. Credit Agreement(1) | | | $ | 16,750 | | | | $ | 33,500 | | | | $ | 293,563 | | | | $ | — | | | | $ | 343,813 | | | | | $ | 16,750 | | | | $ | 33,500 | | | | $ | 307,875 | | | | $ | — | | | | $ | 358,125 | | | ||||||||||
Expected Interest(1)(2) | | | | 10,151 | | | | | 18,854 | | | | | 14,941 | | | | | — | | | | | 43,946 | | | | | | 10,595 | | | | | 19,735 | | | | | 13,565 | | | | | — | | | | | 43,895 | | | ||||||||||
Capital Leases | | | | 19,333 | | | | | 19,643 | | | | | 185 | | | | | — | | | | | 39,161 | | | | | | 23,172 | | | | | 18,594 | | | | | 90 | | | | | — | | | | | 41,856 | | | ||||||||||
Operating Leases | | | | 8,822 | | | | | 9,075 | | | | | 196 | | | | | 177 | | | | | 18,270 | | | | | | 8,989 | | | | | 8,719 | | | | | 1,440 | | | | | 130 | | | | | 19,278 | | | ||||||||||
Acquisition Obligations | | | | 2,009 | | | | | 5,264 | | | | | — | | | | | — | | | | | 7,273 | | | | | | 2,913 | | | | | 6,079 | | | | | — | | | | | — | | | | | 8,992 | | | ||||||||||
Extended Vendor Financing(3) | | | | 25,961 | | | | | — | | | | | — | | | | | — | | | | | 25,961 | | | | | | 19,088 | | | | | — | | | | | — | | | | | — | | | | | 19,088 | | | ||||||||||
Total Contractual Obligations(4) | | | $ | 83,026 | | | | $ | 86,336 | | | | $ | 308,885 | | | | $ | 177 | | | | $ | 478,424 | | | | | $ | 81,507 | | | | $ | 86,627 | | | | $ | 322,970 | | | | $ | 130 | | | | $ | 491,234 | | |
| | Year Ended December 31, | | | Year Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | 2017 | | ||||||||||||||||||||||||||||||||
Oxygen | | | | 39.2% | | | | | 41.0% | | | | | 42.8% | | | | | 45.0% | | | | | | 39.2% | | | | | 41.0% | | | | | 42.8% | | | | | 45.0% | | | ||||||||
Ventilators | | | | 11.5% | | | | | 7.5% | | | | | 3.3% | | | | | 0.9% | | | | | | 11.5% | | | | | 7.5% | | | | | 3.3% | | | | | 0.9% | | | ||||||||
Sleep therapy | | | | 36.4% | | | | | 40.7% | | | | | 42.8% | | | | | 42.4% | | | | | | 36.4% | | | | | 40.7% | | | | | 42.8% | | | | | 42.4% | | | ||||||||
Wound care | | | | 4.2% | | | | | 0.7% | | | | | — | | | | | — | | | | | | 4.2% | | | | | 0.7% | | | | | — | | | | | — | | | ||||||||
DME | | | | 6.8% | | | | | 7.8% | | | | | 8.7% | | | | | 9.0% | | | | | | 6.8% | | | | | 7.8% | | | | | 8.7% | | | | | 9.0% | | | ||||||||
Capitation | | | | 1.9% | | | | | 2.3% | | | | | 2.4% | | | | | 2.7% | | | |||||||||||||||||||||||||||||
| | | | 100.0% | | | | | 100.0% | | | | | 100.0% | | | | | 100.0% | | |
| | | Year Ended December 31, | | |||||||||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | | 2017 | | ||||||||||||
Capitation | | | | | 1.9% | | | | | | 2.3% | | | | | | 2.4% | | | | | | 2.7% | | |
| | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
|
Name | | | Age | | | Position | |
Executive Officers | | | | | | | |
Timothy C. Pigg | | | | | President and Chief Executive Officer | | |
Thomas J. Koenig | | | 60 | | | Chief Financial Officer and Treasurer | |
Robin Menchen | | | 60 | | | Chief Operating Officer | |
Steven Burres | | | 39 | | | General Counsel and Secretary | |
Directors | | | | | | | |
James Bloem | | | | | Director | | |
Timothy Lavelle | | | 37 | | | Director | |
Robin Menchen | | | 60 | | | Director | |
Timothy C. Pigg | | | | | Chairman | | |
David A. Reganato | | | 41 | | | Director | |
Mark Stolper | | | 49 | | | Director | |
Michael Wartell | | | 52 | | | Director | |
Performance Level | | | Percentage Performance Criteria Achieved | | | Performance Bonus Payable | | ||||||
Less than Threshold | | | | | <85% | | | | | $ | 0 | | |
Threshold | | | | | 85% | | | | 50% of Base Salary | | |||
Target | | | | | 100% | | | | 75% of Base Salary | | |||
Maximum | | | | | ≥125% | | | | 100% of Base Salary | |
Name and Principal Position | | | Fiscal Year | | | Salary ($)(1) | | | Non-Equity Incentive Plan Compensation ($)(2) | | | All Other Compensation ($) | | | Total ($) | | |||||||||||||||
Timothy C. Pigg | | | | | 2020 | | | | | | 580,032 | | | | | | 580,032 | | | | | | — | | | | | | 1,160,064 | | |
President and Chief Executive Officer | | | | | | | |||||||||||||||||||||||||
Thomas J. Koenig | | | | | 2020 | | | | | | 331,447 | | | | | | 331,447 | | | | | | — | | | | | | 662,894 | | |
Chief Financial Officer | | | | | | | |||||||||||||||||||||||||
Robin Menchen | | | | | 2020 | | | | | | 359,067 | | | | | | 359,067 | | | | | | — | | | | | | 718,134 | | |
Chief Operating Officer | | | | | | |
Performance Level | | | Percentage Performance Criteria Achieved | | | Performance Bonus Payable | | ||||||
Less than Threshold | | | | | <85% | | | | | $ | 0 | | |
Threshold | | | | | 85% | | | | 50% of Base Salary | | |||
Target | | | | | 100% | | | | 75% of Base Salary | | |||
Maximum | | | | | ≥125% | | | | 100% of Base Salary | |
Performance Level | | | Percentage Performance Criteria Achieved | | | Performance Bonus Payable | | ||||||
Less than Threshold | | | | | <85% | | | | | $ | 0 | | |
Threshold | | | | | 85% | | | | 50% of Base Salary | | |||
Target | | | | | 100% | | | | 75% of Base Salary | | |||
Maximum | | | | | ≥125% | | | | 100% of Base Salary | |
Name and Principal Position | | | Fiscal Year | | | Salary ($)(1) | | | Non-Equity Incentive Plan Compensation ($)(2) | | | All Other Compensation ($) | | | Total ($) | | |||||||||||||||
Timothy C. Pigg | | | | | 2020 | | | | | | 580,032 | | | | | | 580,032 | | | | | | — | | | | | | 1,160,064 | | |
President and Chief Executive Officer | | | | | | | |||||||||||||||||||||||||
Thomas J. Koenig | | | | | 2020 | | | | | | 331,447 | | | | | | 331,447 | | | | | | — | | | | | | 662,894 | | |
Chief Financial Officer | | | | | | | |||||||||||||||||||||||||
Robin Menchen | | | | | 2020 | | | | | | 359,067 | | | | | | 359,067 | | | | | | — | | | | | | 718,134 | | |
Chief Operating Officer | | | | | | |
| | Transaction Bonus Stock Options | | | Transaction Bonus Restricted Stock | | | Transaction Bonus Restricted Stock Units | | | Stock Options | | | Restricted Stock Units | | ||||||||||
Timothy C. Pigg | | | | | | | | | | | | ||||||||||||||
Thomas J. Koenig | | | | | | | | | | | | ||||||||||||||
Robin Menchen | | | | | | | | | | | | ||||||||||||||
All non-employee directors as a group | | | | | | | | | | | | ||||||||||||||
All other service providers as a group(4) | | | | | | | | | | | |
Name | | | Fees Earned or Paid in Cash ($) | | |||
James Bloem | | | | | 129,000 | | |
Timothy Lavelle | | | | | 119,000 | | |
David A. Reganato | | | | | 123,000 | | |
Mark Stolper | | | | | 125,000 | | |
Michael Wartell | | | | 119,000 | | |
| | Shares Beneficially Owned Prior to this Offering | | Shares Beneficially Owned After this Offering | | | Shares Beneficially Owned Prior to this Offering | | Shares Beneficially Owned After this Offering | | ||||||||||||||||||||||||||||||||||||||||
Name of Beneficial Owner | | Shares | | % | | Shares | | % | | | Shares | | % | | Shares | | % | | ||||||||||||||||||||||||||||||||
Principal Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Capital Group(1) | | | | 3,435,862 | | | | | 42.9% | | | | | 3,435,862 | | | | | 42.9% | | | | | | 3,435,862 | | | | | 42.9% | | | | | 3,435,862 | | | | | 42.9% | | | ||||||||
Silver Point(2) | | | | 2,289,021 | | | | | 28.6% | | | | | 2,289,021 | | | | | 28.6% | | | | | | 2,289,021 | | | | | 28.6% | | | | | 2,289,021 | | | | | 28.6% | | | ||||||||
Venor(3) | | | | 1,338,345 | | | | | 16.7% | | | | | 1,338,345 | | | | | 16.7% | | | | | | 1,338,345 | | | | | 16.7% | | | | | 1,338,345 | | | | | 16.7% | | | ||||||||
Directors and Named Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Timothy C. Pigg | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Thomas J. Koenig | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Robin Menchen | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Steven Burres | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
James Bloem | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Timothy Lavelle | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
David Reganato | | | | — | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
David A. Reganato | | | | — | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
Mark Stolper | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Michael Wartell | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
All directors and executive officers as a group (9 persons) | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | |
Underwriter | | | Number of Shares | |
BofA Securities, Inc. | | | | |
Jefferies LLC | | | | |
UBS Securities LLC | | | | |
Truist Securities, Inc. | | | | |
Robert W. Baird & Co. Incorporated | | | | |
RBC Capital Markets, LLC | | | | |
Total | | | | |
| | | Per Share | | | Without Option | | | With Option | | |||||||||
Public offering price | | | | $ | | | | | | $ | | | | | | $ | | | |
Underwriting discount paid by us | | | | $ | | | | | | $ | | | | | | $ | | | |
Proceeds, before expenses, to us | | | | $ | | | | | | $ | | | | | | $ | | | |
| | | Page | | |||
Audited Consolidated Financial Statements of Rotech Healthcare Holding Inc. and Subsidiaries | | | |||||
| | | | F-2 | | | |
Consolidated Financial Statements | | | | | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| Unaudited Condensed Consolidated Financial Statements of Rotech Healthcare Holdings Inc. and Subsidiaries | | | |||||
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | |
| | December 31, 2020 | | December 31, 2019 | | | December 31, 2020 | | December 31, 2019 | | ||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | ||||
Current assets: | | | | | | | | | | | | | | | | | | | | | | | ||||
Cash and cash equivalents | | | $ | 52,122 | | | | $ | 52,666 | | | | | $ | 52,122 | | | | $ | 52,666 | | | ||||
Accounts receivable | | | | 49,678 | | | | | 44,566 | | | | | | 49,678 | | | | | 44,566 | | | ||||
Other receivables | | | | 8,829 | | | | | 2,865 | | | | | | 8,829 | | | | | 2,865 | | | ||||
Income taxes receivable | | | | 136 | | | | | 133 | | | | | | 136 | | | | | 133 | | | ||||
Inventories | | | | 14,429 | | | | | 11,118 | | | | | | 14,429 | | | | | 11,118 | | | ||||
Prepaid expenses | | | | 4,431 | | | | | 5,596 | | | | | | 4,431 | | | | | 5,596 | | | ||||
Total current assets | | | | 129,625 | | | | | 116,944 | | | | | | 129,625 | | | | | 116,944 | | | ||||
Property and equipment, net | | | | 177,707 | | | | | 137,413 | | | | | | 177,707 | | | | | 137,413 | | | ||||
Goodwill | | | | 273,237 | | | | | 248,512 | | | | | | 273,237 | | | | | 248,512 | | | ||||
Intangible assets, net | | | | 22,275 | | | | | 11,667 | | | | | | 22,275 | | | | | 11,667 | | | ||||
Deferred tax asset | | | | 63,510 | | | | | — | | | | | | 63,510 | | | | | — | | | ||||
Other assets | | | | 2,156 | | | | | 2,422 | | | | | | 2,156 | | | | | 2,422 | | | ||||
Total assets | | | $ | 668,510 | | | | $ | 516,958 | | | | | $ | 668,510 | | | | $ | 516,958 | | | ||||
Liabilities and Stockholders’ Equity (Deficit) | | | | | | | | | | | | | | | | | | | | | | | ||||
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts payable | | | $ | 42,835 | | | | $ | 23,970 | �� | | | | $ | 42,835 | | | | $ | 23,970 | | | ||||
Accrued expenses and other current liabilities | | | | 53,886 | | | | | 50,893 | | | | | | 53,886 | | | | | 50,893 | | | ||||
Accrued interest | | | | 4,824 | | | | | 6,451 | | | | | | 4,824 | | | | | 6,451 | | | ||||
Deferred revenue | | | | 12,822 | | | | | 8,185 | | | | | | 12,822 | | | | | 8,185 | | | ||||
Current portion of debt | | | | 33,513 | | | | | 23,487 | | | | | | 33,513 | | | | | 23,487 | | | ||||
Total current liabilities | | | | 147,880 | | | | | 112,986 | | | | | | 147,880 | | | | | 112,986 | | | ||||
Other long-term liabilities | | | | 11,155 | | | | | 6,732 | | | | | | 11,155 | | | | | 6,732 | | | ||||
Deferred tax liability | | | | — | | | | | 23,370 | | | | | | — | | | | | 23,370 | | | ||||
Debt, less current portion | | | | 479,717 | | | | | 463,272 | | | | | | 479,717 | | | | | 463,272 | | | ||||
Total liabilities | | | | 638,752 | | | | | 606,360 | | | | | | 638,752 | | | | | 606,360 | | | ||||
Commitments and contingencies (Notes 7 and 10) | | | | | | | | | | | | | | | | | | | | | | | ||||
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | ||||
Common stock, par value $0.001 per share, 9,600,000 shares authorized, 8,000,000 issued and outstanding at December 31, 2020 and 2019 | | | | 8 | | | | | 8 | | | | | | 8 | | | | | 8 | | | ||||
Additional paid-in capital | | | | 125,911 | | | | | 125,911 | | | | | | 125,911 | | | | | 125,911 | | | ||||
Accumulated deficit | | | | (96,161) | | | | | (215,321) | | | | | | (96,161) | | | | | (215,321) | | | ||||
Total stockholders’ equity (deficit) | | | | 29,758 | | | | | (89,402) | | | | | | 29,758 | | | | | (89,402) | | | ||||
Total liabilities and stockholders’ equity (deficit) | | | $ | 668,510 | | | | $ | 516,958 | | | | | $ | 668,510 | | | | $ | 516,958 | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Revenues | | | | $ | 503,183 | | | | | $ | 408,304 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenues: | | | | | | | | | | | | | |
Product and supply costs | | | | | 69,698 | | | | | | 57,352 | | |
Patient service equipment depreciation | | | | | 68,872 | | | | | | 57,610 | | |
Operating expenses | | | | | 59,559 | | | | | | 53,134 | | |
Total cost of revenues | | | | | 198,129 | | | | | | 168,096 | | |
Gross profit | | | | | 305,054 | | | | | | 240,208 | | |
Expenses: | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 221,838 | | | | | | 183,967 | | |
Depreciation and amortization | | | | | 7,913 | | | | | | 5,190 | | |
Total expenses | | | | | 229,751 | | | | | | 189,157 | | |
Operating income | | | | | 75,303 | | | | | | 51,051 | | |
Other expenses (income): | | | | | | | | | | | | | |
Interest expense, net | | | | | 45,661 | | | | | | 52,481 | | |
Loss on debt refinance | | | | | 1,700 | | | | | | 4,637 | | |
Other expense (income), net | | | | | 145 | | | | | | (722) | | |
Total other expense | | | | | 47,506 | | | | | | 56,396 | | |
Income (loss) before income taxes | | | | | 27,797 | | | | | | (5,345) | | |
Income tax benefit | | | | | (91,363) | | | | | | (9,148) | | |
Net income | | | | $ | 119,160 | | | | | $ | 3,803 | | |
Net income available to common stockholders per share, basic and diluted | | | | $ | 14.90 | | | | | $ | 0.48 | | |
Weighted average shares outstanding, basic and diluted | | | | | 8,000,000 | | | | | | 8,000,000 | | |
| | | Shares of Common Stock | | | Par Value Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity (Deficit) | | |||||||||||||||
Balance at December 31, 2018 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (219,124) | | | | | $ | (93,205) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | 3,803 | | | | | | 3,803 | | |
Balance at December 31, 2019 | | | | | 8,000,000 | | | | | | 8 | | | | | | 125,911 | | | | | | (215,321) | | | | | | (89,402) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 119,160 | | | | | | 119,160 | | |
Balance at December 31, 2020 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (96,161) | | | | | $ | 29,758 | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income | | | | $ | 119,160 | | | | | $ | 3,803 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 77,026 | | | | | | 63,516 | | |
Payment-in-kind interest added to long-term borrowings | | | | | 29,506 | | | | | | 39,510 | | |
Deferred income taxes | | | | | (91,338) | | | | | | (9,235) | | |
Gain on sales of property and equipment | | | | | (552) | | | | | | (996) | | |
Interest rate swap | | | | | 1,727 | | | | | | 2,418 | | |
Loss on debt refinance | | | | | 1,700 | | | | | | 4,637 | | |
Other | | | | | (481) | | | | | | — | | |
Changes in operating assets and liabilities, net of acquisitions: | | | | | | | | | | | | | |
Accounts receivable | | | | | (2,470) | | | | | | 1,582 | | |
Other receivables | | | | | (5,830) | | | | | | 317 | | |
Inventories | | | | | (2,782) | | | | | | (3,344) | | |
Prepaid expenses | | | | | 1,170 | | | | | | (1,094) | | |
Income taxes receivable | | | | | (3) | | | | | | 8 | | |
Other assets | | | | | 277 | | | | | | (486) | | |
Accounts payable, accrued expenses and other current liabilities | | | | | 9,569 | | | | | | 847 | | |
Accrued interest | | | | | (1,627) | | | | | | (2,255) | | |
Deferred revenue | | | | | 4,008 | | | | | | 1,214 | | |
Other long-term liabilities | | | | | 36 | | | | | | 1 | | |
Net cash provided by operating activities | | | | | 139,096 | | | | | | 100,443 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Purchases of equipment | | | | | (76,220) | | | | | | (60,766) | | |
Cash paid for acquisitions, net of cash acquired | | | | | (32,515) | | | | | | — | | |
Proceeds on sales of equipment | | | | | 681 | | | | | | 1,321 | | |
Net cash used in investing activities | | | | | (108,054) | | | | | | (59,445) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Payments on capital leases | | | | | (14,105) | | | | | | (13,794) | | |
Payments on long-term borrowings | | | | | (106,944) | | | | | | (117,502) | | |
Proceeds from long-term borrowing | | | | | 94,375 | | | | | | 106,000 | | |
Debt issuance costs | | | | | (2,464) | | | | | | (2,781) | | |
Borrowings on revolving credit facility | | | | | 32,500 | | | | | | — | | |
Payments on revolving credit facility | | | | | (32,500) | | | | | | — | | |
Payments of other liabilities | | | | | (2,448) | | | | | | (2,902) | | |
Net cash used in financing activities | | | | | (31,586) | | | | | | (30,979) | | |
(Decrease) increase in cash and cash equivalents | | | | | (544) | | | | | | 10,019 | | |
Cash and cash equivalents: | | | | | | | | | | | | | |
Beginning | | | | | 52,666 | | | | | | 42,647 | | |
Ending | | | | $ | 52,122 | | | | | $ | 52,666 | | |
Supplemental Disclosures of Noncash Investing and Financing Activities: | | | | | | | | | | | | | |
Property and equipment acquired through finance leases | | | | $ | 24,102 | | | | | $ | 20,061 | | |
Contingent consideration related to acquisitions | | | | $ | 6,233 | | | | | $ | — | | |
Property and equipment unpaid and included in accounts payable, accrued expenses and other current liabilities | | | | $ | 27,149 | | | | | $ | 16,978 | | |
Supplemental Disclosure of Cash Flow Information: | | | | | | | | | | | | | |
Interest paid | | | | $ | 15,933 | | | | | $ | 12,736 | | |
Income taxes paid, net of refunds received | | | | $ | (20) | | | | | $ | 78 | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Rental revenues: | | | | | | | | | | | | | |
Oxygen | | | | $ | 184,388 | | | | | $ | 152,063 | | |
Ventilators | | | | | 57,986 | | | | | | 30,771 | | |
Sleep therapy | | | | | 46,987 | | | | | | 44,559 | | |
Wound care | | | | | 8,802 | | | | | | 2,003 | | |
Durable medical equipment | | | | | 21,620 | | | | | | 19,688 | | |
Sale revenues: | | | | | | | | | | | | | |
Oxygen | | | | | 13,064 | | | | | | 15,399 | | |
Sleep therapy | | | | | 135,950 | | | | | | 121,612 | | |
Wound care | | | | | 12,116 | | | | | | 709 | | |
Durable medical equipment | | | | | 12,650 | | | | | | 12,257 | | |
Capitation revenues | | | | | 9,620 | | | | | | 9,243 | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Government | | | | | | | | | | | | | |
Medicare | | | | $ | 134,324 | | | | | $ | 109,448 | | |
Veterans Administration | | | | | 62,536 | | | | | | 57,978 | | |
Medicaid | | | | | 22,626 | | | | | | 16,916 | | |
Other | | | | | 5,894 | | | | | | 4,458 | | |
Government | | | | | 225,380 | | | | | | 188,800 | | |
Commercial | | | | | 242,319 | | | | | | 189,874 | | |
Patient | | | | | 35,484 | | | | | | 29,630 | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | |
| Balance at December 31, 2019 | | | | $ | — | | |
| Addition for acquisitions | | | | | 6,233 | | |
| Change in fair value | | | | | (480) | | |
| Balance at December 31, 2020 | | | | $ | 5,753 | | |
| | | 2020 | | | 2019 | | ||||||
Patient service equipment | | | | $ | 256,382 | | | | | $ | 203,359 | | |
Furniture, office equipment, computers and software | | | | | 48,249 | | | | | | 44,207 | | |
Vehicles | | | | | 24,282 | | | | | | 22,773 | | |
Leasehold improvements | | | | | 6,810 | | | | | | 6,925 | | |
| | | | | 335,723 | | | | | | 277,264 | | |
Less accumulated depreciation | | | | | 158,016 | | | | | | 139,851 | | |
| | | | $ | 177,707 | | | | | $ | 137,413 | | |
| Balance at December 31, 2018 | | | | $ | 248,512 | | |
| Balance at December 31, 2019 | | | | | 248,512 | | |
| Acquisitions | | | | | 24,725 | | |
| Balance at December 31, 2020 | | | | $ | 273,237 | | |
| | | 2020 | | | 2019 | | ||||||||||||||||||
| | | Gross carrying amount | | | Accumulated amortization | | | Gross carrying amount | | | Accumulated amortization | | ||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | | | | |
Tradename | | | | $ | 23,002 | | | | | $ | 9,779 | | | | | $ | 20,000 | | | | | $ | 8,333 | | |
Other intangibles | | | | | 11,250 | | | | | | 2,198 | | | | | | — | | | | | | — | | |
Total intangible assets | | | | $ | 34,252 | | | | | $ | 11,977 | | | | | $ | 20,000 | | | | | $ | 8,333 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | | 6,150 | | |
| 2022 | | | | | 4,989 | | |
| 2023 | | | | | 2,604 | | |
| 2024 | | | | | 1,590 | | |
| 2025 | | | | | 1,570 | | |
| Thereafter | | | | | 5,372 | | |
| | | | | $ | 22,275 | | |
| | | 2020 | | | 2019 | | ||||||
Accrued salaries and wages | | | | $ | 14,840 | | | | | $ | 12,154 | | |
Accrued insurance and other claims | | | | | 8,810 | | | | | | 8,470 | | |
Accounts receivable credit balances | | | | | 8,983 | | | | | | 8,131 | | |
Accrued extended vendor payment terms | | | | | 16,849 | | | | | | 18,598 | | |
Accrued estimated settlement payment | | | | | 1,752 | | | | | | 2,163 | | |
Sales tax payable | | | | | 419 | | | | | | 419 | | |
Other | | | | | 2,233 | | | | | | 958 | | |
| | | | $ | 53,886 | | | | | $ | 50,893 | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Rental revenues: | | | | | | | | | | | | | |
Oxygen | | | | $ | 184,388 | | | | | $ | 152,063 | | |
Ventilators | | | | | 57,986 | | | | | | 30,771 | | |
Sleep therapy | | | | | 46,987 | | | | | | 44,559 | | |
Wound care | | | | | 8,802 | | | | | | 2,003 | | |
Durable medical equipment | | | | | 21,620 | | | | | | 19,688 | | |
Sale revenues: | | | | | | | | | | | | | |
Oxygen | | | | | 13,064 | | | | | | 15,399 | | |
Sleep therapy | | | | | 135,950 | | | | | | 121,612 | | |
Wound care | | | | | 12,116 | | | | | | 709 | | |
Durable medical equipment | | | | | 12,650 | | | | | | 12,257 | | |
Capitation revenues | | | | | 9,620 | | | | | | 9,243 | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | |
| | | 2020 | | | 2019 | | ||||||
Finance lease obligations with interest implied at fixed rates, due in equal monthly installments, maturing from January 2021 through July 2025, collateralized by equipment | | | | $ | 35,516 | | | | | $ | 25,459 | | |
Rotech Healthcare Inc. Credit Facility | | | | | 335,000 | | | | | | 250,000 | | |
Rotech Healthcare Holdings Credit Facility | | | | | 144,368 | | | | | | 212,431 | | |
Subtotal | | | | | 514,884 | | | | | | 487,890 | | |
Less unamortized debt issuance costs | | | | | 1,654 | | | | | | 1,131 | | |
Less current portion of debt | | | | | 33,513 | | | | | | 23,487 | | |
Debt, less current portion | | | | $ | 479,717 | | | | | $ | 463,272 | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Government | | | | | | | | | | | | | |
Medicare | | | | $ | 134,324 | | | | | $ | 109,448 | | |
Veterans Administration | | | | | 62,536 | | | | | | 57,978 | | |
Medicaid | | | | | 22,626 | | | | | | 16,916 | | |
Other | | | | | 5,894 | | | | | | 4,458 | | |
Government | | | | | 225,380 | | | | | | 188,800 | | |
Commercial | | | | | 242,319 | | | | | | 189,874 | | |
Patient | | | | | 35,484 | | | | | | 29,630 | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | $ | 18,120 | | |
| 2022 | | | | | 12,880 | | |
| 2023 | | | | | 6,541 | | |
| 2024 | | | | | 92 | | |
| 2025 | | | | | 31 | | |
| Future minimum finance lease payments | | | | | 37,664 | | |
| Less amounts representing interest | | | | | 2,148 | | |
| Present value of minimum finance lease payments | | | | | 35,516 | | |
| Less current portion | | | | | 16,778 | | |
| Long-term portion | | | | $ | 18,738 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | $ | 33,513 | | |
| 2022 | | | | | 29,030 | | |
| 2023 | | | | | 167,484 | | |
| 2024 | | | | | 16,830 | | |
| 2025 | | | | | 268,027 | | |
| | | | | $ | 514,884 | | |
| | | 2020 | | | 2019 | | ||||||
Interest expense | | | | $ | 45,538 | | | | | $ | 52,400 | | |
Amortization of debt issue costs | | | | | 241 | | | | | | 716 | | |
Interest income | | | | | (118) | | | | | | (635) | | |
Interest expense, net | | | | $ | 45,661 | | | | | $ | 52,481 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | $ | 8,651 | | |
| 2022 | | | | | 6,044 | | |
| 2023 | | | | | 3,177 | | |
| 2024 | | | | | 960 | | |
| 2025 | | | | | 532 | | |
| Thereafter | | | | | 198 | | |
| | | | | $ | 19,562 | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Current: | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | 88 | | | | | | 87 | | |
Total current provision | | | | | 88 | | | | | | 87 | | |
Deferred: | | | | | | | | | | | | | |
Federal | | | | | (71,785) | | | | | | (7,534) | | |
State | | | | | (19,666) | | | | | | (1,701) | | |
Total deferred provision | | | | | (91,451) | | | | | | (9,235) | | |
Income tax benefit | | | | $ | (91,363) | | | | | $ | (9,148) | | |
| | | 2020 | | | 2019 | | ||||||
Long-term deferred tax assets (liabilities): | | | | | | | | | | | | | |
Interest expense limitation carryforward | | | | $ | 8,132 | | | | | $ | 16,685 | | |
Held and unbilled | | | | | (568) | | | | | | (971) | | |
Property and equipment | | | | | (9,729) | | | | | | (4,306) | | |
Intangible assets | | | | | (52,216) | | | | | | (50,152) | | |
Net operating loss (NOL) carryforward | | | | | 111,404 | | | | | | 108,318 | | |
Other deferred assets, net | | | | | 2,594 | | | | | | 2,162 | | |
Other accrued liabilities | | | | | 3,893 | | | | | | 3,620 | | |
Less: valuation allowance | | | | | — | | | | | | (98,726) | | |
Total long-term deferred tax assets (liabilities), net | | | | $ | 63,510 | | | | | $ | (23,370) | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Tax provision computed at the statutory rate | | | | $ | 5,837 | | | | | $ | (1,122) | | |
State income taxes, net of federal income tax benefit | | | | | 1,828 | | | | | | 199 | | |
Permanent items at statutory rate | | | | | (198) | | | | | | (156) | | |
Decrease in deferred tax asset valuation allowance | | | | | (98,726) | | | | | | (7,997) | | |
Other | | | | | (104) | | | | | | (72) | | |
Total income tax benefit | | | | $ | (91,363) | | | | | $ | (9,148) | | |
| Balance at December 31, 2019 | | | | $ | — | | |
| Addition for acquisitions | | | | | 6,233 | | |
| Change in fair value | | | | | (480) | | |
| Balance at December 31, 2020 | | | | $ | 5,753 | | |
| Cash | | | | $ | 295 | | |
| Accounts receivable | | | | | 2,642 | | |
| Other receivables | | | | | 134 | | |
| Inventory | | | | | 528 | | |
| Prepaid expense | | | | | 16 | | |
| Property and equipment | | | | | 3,071 | | |
| Intangible assets | | | | | 14,252 | | |
| Goodwill | | | | | 24,725 | | |
| Total assets acquired | | | | $ | 45,663 | | |
| Accounts payable | | | | $ | 826 | | |
| Accrued expenses and other liabilities | | | | | 4,459 | | |
| Deferred revenue | | | | | 629 | | |
| Total liabilities assumed | | | | $ | 5,914 | | |
| Total purchase price | | | | $ | 39,749 | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Revenues | | | | $ | 520,445 | | | | | $ | 434,687 | | |
Operating income | | | | $ | 77,603 | | | | | $ | 55,700 | | |
| | | Year ended December 31, 2020 | | |||
Revenue | | | | $ | 14,175 | | |
Operating income | | | | $ | 3,156 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (Unaudited) | | | | | | | | |||
Assets | | | | ||||||||||
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 55,002 | | | | | $ | 52,122 | | |
Accounts receivable | | | | | 59,630 | | | | | | 49,678 | | |
Other receivables | | | | | 2,623 | | | | | | 8,829 | | |
Income taxes receivable | | | | | 126 | | | | | | 136 | | |
Inventories | | | | | 16,993 | | | | | | 14,429 | | |
Prepaid expenses | | | | | 6,544 | | | | | | 4,431 | | |
Total current assets | | | | | 140,918 | | | | | | 129,625 | | |
Property and equipment, net | | | | | 189,733 | | | | | | 177,707 | | |
Goodwill | | | | | 281,440 | | | | | | 273,237 | | |
Intangible assets, net | | | | | 26,342 | | | | | | 22,275 | | |
Deferred tax asset | | | | | 57,211 | | | | | | 63,510 | | |
Other assets | | | | | 2,120 | | | | | | 2,156 | | |
Total assets | | | | $ | 697,764 | | | | | $ | 668,510 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 29,495 | | | | | $ | 42,835 | | |
Accrued expenses and other current liabilities | | | | | 67,549 | | | | | | 53,886 | | |
Accrued interest | | | | | 5,184 | | | | | | 4,824 | | |
Deferred revenue | | | | | 13,227 | | | | | | 12,822 | | |
Current portion of debt | | | | | 34,747 | | | | | | 33,513 | | |
Total current liabilities | | | | | 150,202 | | | | | | 147,880 | | |
Other long-term liabilities | | | | | 11,124 | | | | | | 11,155 | | |
Debt, less current portion | | | | | 493,836 | | | | | | 479,717 | | |
Total liabilities | | | | | 655,162 | | | | | | 638,752 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, par value $0.001 per share, 9,600,000 shares authorized, 8,000,000 issued and outstanding at March 31, 2021 and December 31, 2020 | | | | | 8 | | | | | | 8 | | |
Additional paid-in capital | | | | | 125,911 | | | | | | 125,911 | | |
Accumulated deficit | | | | ��� | (83,317) | | | | | | (96,161) | | |
Total stockholders’ equity | | | | | 42,602 | | | | | | 29,758 | | |
Total liabilities and stockholders’ equity | | | | $ | 697,764 | | | | | $ | 668,510 | | |
| | | Three months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenues | | | | $ | 142,003 | | | | | $ | 110,842 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenues: | | | | | | | | | | | | | |
Product and supply costs | | | | | 18,955 | | | | | | 15,357 | | |
Patient service equipment depreciation | | | | | 19,177 | | | | | | 16,648 | | |
Operating expenses | | | | | 16,032 | | | | | | 14,690 | | |
Total cost of revenues | | | | | 54,164 | | | | | | 46,695 | | |
Gross profit | | | | | 87,839 | | | | | | 64,147 | | |
Expenses: | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 59,222 | | | | | | 48,276 | | |
Depreciation and amortization | | | | | 2,805 | | | | | | 1,297 | | |
Total expenses | | | | | 62,027 | | | | | | 49,573 | | |
Operating income | | | | | 25,812 | | | | | | 14,574 | | |
Other expenses (income): | | | | | | | | | | | | | |
Interest expense, net | | | | | 8,301 | | | | | | 14,619 | | |
Other (income) expense, net | | | | | (7) | | | | | | 54 | | |
Total other expense | | | | | 8,294 | | | | | | 14,673 | | |
Income (loss) before income taxes | | | | | 17,518 | | | | | | (99) | | |
Income tax expense | | | | | 4,674 | | | | | | 97 | | |
Net income (loss) | | | | $ | 12,844 | | | | | $ | (196) | | |
Net income (loss) available to common stockholders per share, basic and diluted | | | | $ | 1.61 | | | | | $ | (0.02) | | |
Weighted average shares outstanding, basic and diluted | | | | | 8,000,000 | | | | | | 8,000,000 | | |
| | | Shares of Common Stock | | | Par Value Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | |||||||||||||||
Balance at December 31, 2020 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (96,161) | | | | | $ | 29,758 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 12,844 | | | | | | 12,844 | | |
Balance at March 31, 2021 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (83,317) | | | | | $ | 42,602 | | |
| | | Shares of Common Stock | | | Par Value Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||
Balance at December 31, 2019 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (215,321) | | | | | $ | (89,402) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (196) | | | | | | (196) | | |
Balance at March 31, 2020 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (215,517) | | | | | $ | (89,598) | | |
| | | Three months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 12,844 | | | | | $ | (196) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 22,070 | | | | | | 18,005 | | |
Payment-in-kind interest added to long-term borrowings | | | | | 4,900 | | | | | | 7,064 | | |
Deferred income taxes | | | | | 4,648 | | | | | | — | | |
Gain on sales of property and equipment | | | | | (424) | | | | | | (28) | | |
Interest rate swap | | | | | (883) | | | | | | 3,535 | | |
Changes in operating assets and liabilities, net of acquisition: | | | | | | | | | | | | | |
Accounts receivable | | | | | (9,493) | | | | | | (4,251) | | |
Other receivables | | | | | 6,206 | | | | | | (604) | | |
Inventories | | | | | (2,463) | | | | | | (460) | | |
Prepaid expenses | | | | | (2,113) | | | | | | 1,652 | | |
Income taxes receivable | | | | | 10 | | | | | | 84 | | |
Other assets | | | | | 46 | | | | | | (10) | | |
Accounts payable, accrued expenses and other current liabilities | | | | | 5,031 | | | | | | 5,687 | | |
Accrued interest | | | | | 360 | | | | | | 68 | | |
Deferred revenue | | | | | 404 | | | | | | 466 | | |
Other long-term liabilities | | | | | — | | | | | | 45 | | |
Net cash provided by operating activities | | | | | 41,143 | | | | | | 31,057 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Purchases of equipment | | | | | (28,399) | | | | | | (14,062) | | |
Cash paid for acquisitions, net of cash acquired | | | | | (12,198) | | | | | | — | | |
Proceeds on sales of equipment | | | | | 446 | | | | | | 59 | | |
Net cash used in investing activities | | | | | (40,151) | | | | | | (14,003) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Payments of other liabilities | | | | | (1,752) | | | | | | (660) | | |
Payments on capital leases | | | | | (5,173) | | | | | | (2,806) | | |
Payments on long-term borrowings | | | | | (4,187) | | | | | | (3,125) | | |
Borrowings on revolving credit facility | | | | | 13,000 | | | | | | — | | |
Net cash provided by (used in) financing activities | | | | | 1,888 | | | | | | (6,591) | | |
Increase in cash and cash equivalents | | | | | 2,880 | | | | | | 10,463 | | |
Cash and cash equivalents: | | | | | | | | | | | | | |
Beginning | | | | | 52,122 | | | | | | 52,666 | | |
Ending | | | | $ | 55,002 | | | | | $ | 63,129 | | |
Supplemental Disclosures of Noncash Investing and Financing Activities: | | | | | | | | | | | | | |
Property and equipment acquired through capital leases | | | | $ | 6,715 | | | | | $ | 1,030 | | |
Property and equipment unpaid and included in accounts payable, accrued expenses and other current liabilities | | | | $ | 22,876 | | | | | $ | 23,294 | | |
Supplemental Disclosures of Cash Flows Information: | | | | | | | | | | | | | |
Interest paid | | | | $ | 3,743 | | | | | $ | 3,940 | | |
Income taxes paid | | | | $ | 15 | | | | | $ | 13 | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Rental revenues: | | | | | | | | | | | | | |
Oxygen | | | | $ | 184,388 | | | | | $ | 152,063 | | |
Ventilators | | | | | 57,986 | | | | | | 30,771 | | |
Sleep therapy | | | | | 46,987 | | | | | | 44,559 | | |
Wound care | | | | | 8,802 | | | | | | 2,003 | | |
Durable medical equipment | | | | | 21,620 | | | | | | 19,688 | | |
Sale revenues: | | | | | | | | | | | | | |
Oxygen | | | | | 13,064 | | | | | | 15,399 | | |
Sleep therapy | | | | | 135,950 | | | | | | 121,612 | | |
Wound care | | | | | 12,116 | | | | | | 709 | | |
Durable medical equipment | | | | | 12,650 | | | | | | 12,257 | | |
Capitation revenues | | | | | 9,620 | | | | | | 9,243 | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Government | | | | | | | | | | | | | |
Medicare | | | | $ | 134,324 | | | | | $ | 109,448 | | |
Veterans Administration | | | | | 62,536 | | | | | | 57,978 | | |
Medicaid | | | | | 22,626 | | | | | | 16,916 | | |
Other | | | | | 5,894 | | | | | | 4,458 | | |
Government | | | | | 225,380 | | | | | | 188,800 | | |
Commercial | | | | | 242,319 | | | | | | 189,874 | | |
Patient | | | | | 35,484 | | | | | | 29,630 | | |
| | | | $ | 503,183 | | | | | $ | 408,304 | | |
| Balance at December 31, 2019 | | | | $ | — | | |
| Addition for acquisitions | | | | | 6,233 | | |
| Change in fair value | | | | | (480) | | |
| Balance at December 31, 2020 | | | | $ | 5,753 | | |
| | | 2020 | | | 2019 | | ||||||
Patient service equipment | | | | $ | 256,382 | | | | | $ | 203,359 | | |
Furniture, office equipment, computers and software | | | | | 48,249 | | | | | | 44,207 | | |
Vehicles | | | | | 24,282 | | | | | | 22,773 | | |
Leasehold improvements | | | | | 6,810 | | | | | | 6,925 | | |
| | | | | 335,723 | | | | | | 277,264 | | |
Less accumulated depreciation | | | | | 158,016 | | | | | | 139,851 | | |
| | | | $ | 177,707 | | | | | $ | 137,413 | | |
| Balance at December 31, 2018 | | | | $ | 248,512 | | |
| Balance at December 31, 2019 | | | | | 248,512 | | |
| Acquisitions | | | | | 24,725 | | |
| Balance at December 31, 2020 | | | | $ | 273,237 | | |
| | | 2020 | | | 2019 | | ||||||||||||||||||
| | | Gross carrying amount | | | Accumulated amortization | | | Gross carrying amount | | | Accumulated amortization | | ||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | | | | |
Tradename | | | | $ | 23,002 | | | | | $ | 9,779 | | | | | $ | 20,000 | | | | | $ | 8,333 | | |
Other intangibles | | | | | 11,250 | | | | | | 2,198 | | | | | | — | | | | | | — | | |
Total intangible assets | | | | $ | 34,252 | | | | | $ | 11,977 | | | | | $ | 20,000 | | | | | $ | 8,333 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | | 6,150 | | |
| 2022 | | | | | 4,989 | | |
| 2023 | | | | | 2,604 | | |
| 2024 | | | | | 1,590 | | |
| 2025 | | | | | 1,570 | | |
| Thereafter | | | | | 5,372 | | |
| | | | | $ | 22,275 | | |
| | | 2020 | | | 2019 | | ||||||
Accrued salaries and wages | | | | $ | 14,840 | | | | | $ | 12,154 | | |
Accrued insurance and other claims | | | | | 8,810 | | | | | | 8,470 | | |
Accounts receivable credit balances | | | | | 8,983 | | | | | | 8,131 | | |
Accrued extended vendor payment terms | | | | | 16,849 | | | | | | 18,598 | | |
Accrued estimated settlement payment | | | | | 1,752 | | | | | | 2,163 | | |
Sales tax payable | | | | | 419 | | | | | | 419 | | |
Other | | | | | 2,233 | | | | | | 958 | | |
| | | | $ | 53,886 | | | | | $ | 50,893 | | |
| | | 2020 | | | 2019 | | ||||||
Finance lease obligations with interest implied at fixed rates, due in equal monthly installments, maturing from January 2021 through July 2025, collateralized by equipment | | | | $ | 35,516 | | | | | $ | 25,459 | | |
Rotech Healthcare Inc. Credit Facility | | | | | 335,000 | | | | | | 250,000 | | |
Rotech Healthcare Holdings Credit Facility | | | | | 144,368 | | | | | | 212,431 | | |
Subtotal | | | | | 514,884 | | | | | | 487,890 | | |
Less unamortized debt issuance costs | | | | | 1,654 | | | | | | 1,131 | | |
Less current portion of debt | | | | | 33,513 | | | | | | 23,487 | | |
Debt, less current portion | | | | $ | 479,717 | | | | | $ | 463,272 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | $ | 18,120 | | |
| 2022 | | | | | 12,880 | | |
| 2023 | | | | | 6,541 | | |
| 2024 | | | | | 92 | | |
| 2025 | | | | | 31 | | |
| Future minimum finance lease payments | | | | | 37,664 | | |
| Less amounts representing interest | | | | | 2,148 | | |
| Present value of minimum finance lease payments | | | | | 35,516 | | |
| Less current portion | | | | | 16,778 | | |
| Long-term portion | | | | $ | 18,738 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | $ | 33,513 | | |
| 2022 | | | | | 29,030 | | |
| 2023 | | | | | 167,484 | | |
| 2024 | | | | | 16,830 | | |
| 2025 | | | | | 268,027 | | |
| | | | | $ | 514,884 | | |
| | | 2020 | | | 2019 | | ||||||
Interest expense | | | | $ | 45,538 | | | | | $ | 52,400 | | |
Amortization of debt issue costs | | | | | 241 | | | | | | 716 | | |
Interest income | | | | | (118) | | | | | | (635) | | |
Interest expense, net | | | | $ | 45,661 | | | | | $ | 52,481 | | |
| For the years ending December 31: | | | | | | | |
| 2021 | | | | $ | 8,651 | | |
| 2022 | | | | | 6,044 | | |
| 2023 | | | | | 3,177 | | |
| 2024 | | | | | 960 | | |
| 2025 | | | | | 532 | | |
| Thereafter | | | | | 198 | | |
| | | | | $ | 19,562 | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Current: | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | 88 | | | | | | 87 | | |
Total current provision | | | | | 88 | | | | | | 87 | | |
Deferred: | | | | | | | | | | | | | |
Federal | | | | | (71,785) | | | | | | (7,534) | | |
State | | | | | (19,666) | | | | | | (1,701) | | |
Total deferred provision | | | | | (91,451) | | | | | | (9,235) | | |
Income tax benefit | | | | $ | (91,363) | | | | | $ | (9,148) | | |
| | | 2020 | | | 2019 | | ||||||
Long-term deferred tax assets (liabilities): | | | | | | | | | | | | | |
Interest expense limitation carryforward | | | | $ | 8,132 | | | | | $ | 16,685 | | |
Held and unbilled | | | | | (568) | | | | | | (971) | | |
Property and equipment | | | | | (9,729) | | | | | | (4,306) | | |
Intangible assets | | | | | (52,216) | | | | | | (50,152) | | |
Net operating loss (NOL) carryforward | | | | | 111,404 | | | | | | 108,318 | | |
Other deferred assets, net | | | | | 2,594 | | | | | | 2,162 | | |
Other accrued liabilities | | | | | 3,893 | | | | | | 3,620 | | |
Less: valuation allowance | | | | | — | | | | | | (98,726) | | |
Total long-term deferred tax assets (liabilities), net | | | | $ | 63,510 | | | | | $ | (23,370) | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Tax provision computed at the statutory rate | | | | $ | 5,837 | | | | | $ | (1,122) | | |
State income taxes, net of federal income tax benefit | | | | | 1,828 | | | | | | 199 | | |
Permanent items at statutory rate | | | | | (198) | | | | | | (156) | | |
Decrease in deferred tax asset valuation allowance | | | | | (98,726) | | | | | | (7,997) | | |
Other | | | | | (104) | | | | | | (72) | | |
Total income tax benefit | | | | $ | (91,363) | | | | | $ | (9,148) | | |
| Cash | | | | $ | 295 | | |
| Accounts receivable | | | | | 2,642 | | |
| Other receivables | | | | | 134 | | |
| Inventory | | | | | 528 | | |
| Prepaid expense | | | | | 16 | | |
| Property and equipment | | | | | 3,071 | | |
| Intangible assets | | | | | 14,252 | | |
| Goodwill | | | | | 24,725 | | |
| Total assets acquired | | | | $ | 45,663 | | |
| Accounts payable | | | | $ | 826 | | |
| Accrued expenses and other liabilities | | | | | 4,459 | | |
| Deferred revenue | | | | | 629 | | |
| Total liabilities assumed | | | | $ | 5,914 | | |
| Total purchase price | | | | $ | 39,749 | | |
| | | Year ended December 31, 2020 | | | Year ended December 31, 2019 | | ||||||
Revenues | | | | $ | 520,445 | | | | | $ | 434,687 | | |
Operating income | | | | $ | 77,603 | | | | | $ | 55,700 | | |
| | | Year ended December 31, 2020 | | |||
Revenue | | | | $ | 14,175 | | |
Operating income | | | | $ | 3,156 | | |
| | | June 30, 2021 | | | December 31, 2020 | | ||||||
| | | (Unaudited) | | | | | | | | |||
Assets | | | | ||||||||||
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 47,815 | | | | | $ | 52,122 | | |
Accounts receivable | | | | | 66,455 | | | | | | 49,678 | | |
Other receivables | | | | | 3,954 | | | | | | 8,829 | | |
Income taxes receivable | | | | | 198 | | | | | | 136 | | |
Inventories | | | | | 16,972 | | | | | | 14,429 | | |
Prepaid expenses | | | | | 7,173 | | | | | | 4,431 | | |
Total current assets | | | | | 142,567 | | | | | | 129,625 | | |
Property and equipment, net | | | | | 192,790 | | | | | | 177,707 | | |
Goodwill | | | | | 294,461 | | | | | | 273,237 | | |
Intangible assets, net | | | | | 36,405 | | | | | | 22,275 | | |
Deferred tax asset | | | | | 50,248 | | | | | | 63,510 | | |
Other assets | | | | | 4,902 | | | | | | 2,156 | | |
Total assets | | | | $ | 721,373 | | | | | $ | 668,510 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 28,377 | | | | | $ | 42,835 | | |
Accrued expenses and other current liabilities | | | | | 58,712 | | | | | | 53,886 | | |
Accrued interest | | | | | 4,497 | | | | | | 4,824 | | |
Deferred revenue | | | | | 13,364 | | | | | | 12,822 | | |
Current portion of debt | | | | | 38,657 | | | | | | 33,513 | | |
Total current liabilities | | | | | 143,607 | | | | | | 147,880 | | |
Other long-term liabilities | | | | | 11,205 | | | | | | 11,155 | | |
Debt, less current portion | | | | | 512,076 | | | | | | 479,717 | | |
Total liabilities | | | | | 666,888 | | | | | | 638,752 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, par value $0.001 per share, 9,600,000 shares authorized, 8,000,000 issued and outstanding at June 30, 2021 and December 31, 2020 | | | | | 8 | | | | | | 8 | | |
Additional paid-in capital | | | | | 125,911 | | | | | | 125,911 | | |
Accumulated deficit | | | | | (71,434) | | | | | | (96,161) | | |
Total stockholders’ equity | | | | | 54,485 | | | | | | 29,758 | | |
Total liabilities and stockholders’ equity | | | | $ | 721,373 | | | | | $ | 668,510 | | |
| | | Three months ended June 30, | | | Six months ended June 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2021 | | | 2020 | | ||||||||||||
Revenues | | | | $ | 151,072 | | | | | $ | 120,082 | | | | | $ | 293,075 | | | | | $ | 230,924 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Product and supply costs | | | | | 22,850 | | | | | | 15,397 | | | | | | 41,805 | | | | | | 30,754 | | |
Patient service equipment depreciation | | | | | 19,932 | | | | | | 16,392 | | | | | | 39,109 | | | | | | 33,040 | | |
Operating expenses | | | | | 17,017 | | | | | | 14,037 | | | | | | 33,049 | | | | | | 28,727 | | |
Total cost of revenues | | | | | 59,799 | | | | | | 45,826 | | | | | | 113,963 | | | | | | 92,521 | | |
Gross profit | | | | | 91,273 | | | | | | 74,256 | | | | | | 179,112 | | | | | | 138,403 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 64,000 | | | | | | 55,129 | | | | | | 123,222 | | | | | | 103,405 | | |
Depreciation and amortization | | | | | 2,871 | | | | | | 1,587 | | | | | | 5,676 | | | | | | 2,884 | | |
Total expenses | | | | | 66,871 | | | | | | 56,716 | | | | | | 128,898 | | | | | | 106,289 | | |
Operating income | | | | | 24,402 | | | | | | 17,540 | | | | | | 50,214 | | | | | | 32,114 | | |
Other expenses (income): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net | | | | | 8,323 | | | | | | 10,702 | | | | | | 16,624 | | | | | | 25,321 | | |
Other (income) expense, net | | | | | (28) | | | | | | (9) | | | | | | (35) | | | | | | 45 | | |
Total other expense | | | | | 8,295 | | | | | | 10,693 | | | | | | 16,589 | | | | | | 25,366 | | |
Income before income taxes | | | | | 16,107 | | | | | | 6,847 | | | | | | 33,625 | | | | | | 6,748 | | |
Income tax expense (benefit) | | | | | 4,224 | | | | | | (1,728) | | | | | | 8,898 | | | | | | (1,631) | | |
Net income | | | | $ | 11,883 | | | | | $ | 8,575 | | | | | $ | 24,727 | | | | | $ | 8,379 | | |
Net income available to common stockholders per share, basic and diluted | | | | $ | 1.49 | | | | | $ | 1.07 | | | | | $ | 3.09 | | | | | $ | 1.05 | | |
Weighted average shares outstanding, basic and diluted | | | | | 8,000,000 | | | | | | 8,000,000 | | | | | | 8,000,000 | | | | | | 8,000,000 | | |
| | | Shares of Common Stock | | | Par Value Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity | | |||||||||||||||
Balance at December 31, 2020 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (96,161) | | | | | $ | 29,758 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 12,844 | | | | | | 12,844 | | |
Balance at March 31, 2021 | | | | | 8,000,000 | | | | | | 8 | | | | | | 125,911 | | | | | | (83,317) | | | | | | 42,602 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 11,883 | | | | | | 11,883 | | |
Balance at June 30, 2021 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (71,434) | | | | | $ | 54,485 | | |
| | | Shares of Common Stock | | | Par Value Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | |||||||||||||||
Balance at December 31, 2019 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (215,321) | | | | | $ | (89,402) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (196) | | | | | | (196) | | |
Balance at March 31, 2020 | | | | | 8,000,000 | | | | | | 8 | | | | | | 125,911 | | | | | | (215,517) | | | | | | (89,598) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 8,575 | | | | | | 8,575 | | |
Balance at June 30, 2020 | | | | | 8,000,000 | | | | | $ | 8 | | | | | $ | 125,911 | | | | | $ | (206,942) | | | | | $ | (81,023) | | |
| | | Six months ended June 30, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income | | | | $ | 24,727 | | | | | $ | 8,379 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 44,960 | | | | | | 36,044 | | |
Payment-in-kind interest added to long-term borrowings | | | | | 9,806 | | | | | | 14,277 | | |
Deferred income taxes | | | | | 8,848 | | | | | | (1,705) | | |
Gain on sales of property and equipment | | | | | (583) | | | | | | (40) | | |
Interest rate swap | | | | | (1,617) | | | | | | 3,340 | | |
Changes in operating assets and liabilities, net of acquisition: | | | | | | | | | | | | | |
Accounts receivable | | | | | (13,814) | | | | | | (1,233) | | |
Other receivables | | | | | 4,875 | | | | | | (3,096) | | |
Inventories | | | | | (1,730) | | | | | | (1,519) | | |
Prepaid expenses | | | | | (2,716) | | | | | | (193) | | |
Income taxes receivable | | | | | (62) | | | | | | 50 | | |
Other assets | | | | | (2,734) | | | | | | 130 | | |
Accounts payable, accrued expenses and other current liabilities | | | | | (1,721) | | | | | | 8,095 | | |
Accrued interest | | | | | (327) | | | | | | 346 | | |
Deferred revenue | | | | | (91) | | | | | | 10,707 | | |
Other long-term liabilities | | | | | (559) | | | | | | 56 | | |
Net cash provided by operating activities | | | | | 67,262 | | | | | | 73,638 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Purchases of equipment | | | | | (52,380) | | | | | | (33,200) | | |
Cash paid for acquisitions, net of cash acquired | | | | | (30,486) | | | | | | (13,862) | | |
Proceeds on sales of equipment | | | | | 641 | | | | | | 103 | | |
Net cash used in investing activities | | | | | (82,225) | | | | | | (46,959) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Payments of other liabilities | | | | | (2,004) | | | | | | (1,341) | | |
Payments on capital leases | | | | | (10,465) | | | | | | (6,021) | | |
Payments on long-term borrowings | | | | | (8,375) | | | | | | (6,250) | | |
Borrowings on acquisition revolving credit facility | | | | | 31,500 | | | | | | 14,000 | | |
Net cash provided by financing activities | | | | | 10,656 | | | | | | 388 | | |
(Decrease) increase in cash and cash equivalents | | | | | (4,307) | | | | | | 27,067 | | |
Cash and cash equivalents: | | | | | | | | | | | | | |
Beginning | | | | | 52,122 | | | | | | 52,666 | | |
Ending | | | | $ | 47,815 | | | | | $ | 79,733 | | |
Supplemental Disclosures of Noncash Investing and Financing Activities: | | | | | | | | | | | | | |
Property and equipment acquired through capital leases | | | | $ | 11,459 | | | | | $ | 7,449 | | |
Property and equipment unpaid and included in accounts payable, accrued expenses and other current liabilities | | | | $ | 16,115 | | | | | $ | 18,395 | | |
Supplemental Disclosures of Cash Flows Information: | | | | | | | | | | | | | |
Interest paid | | | | $ | 8,587 | | | | | $ | 7,287 | | |
Income taxes paid | | | | $ | 112 | | | | | $ | 24 | | |
| | Three months ended March 31, | | | Three months ended June 30, | | Six months ended June 30, | | ||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | | 2021 | | 2020 | | 2021 | | 2020 | | ||||||||||||||||||||||||
Rental revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Oxygen | | | $ | 56,435 | | | | $ | 41,171 | | | | | $ | 56,304 | | | | $ | 44,094 | | | | $ | 112,739 | | | | $ | 85,265 | | | ||||||
Ventilators | | | | 17,086 | | | | | 11,178 | | | | | | 19,548 | | | | | 13,800 | | | | | 36,634 | | | | | 24,978 | | | ||||||
Sleep therapy | | | | 12,118 | | | | | 11,706 | | | | | | 13,208 | | | | | 11,700 | | | | | 25,326 | | | | | 23,406 | | | ||||||
Wound care | | | | 3,207 | | | | | 1,376 | | | | | | 3,934 | | | | | 1,619 | | | | | 7,141 | | | | | 2,995 | | | ||||||
Durable medical equipment | | | | 5,562 | | | | | 5,110 | | | | | | 5,731 | | | | | 5,403 | | | | | 11,293 | | | | | 10,513 | | | ||||||
Sale revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Oxygen | | | | 2,636 | | | | | 3,701 | | | | | | 2,728 | | | | | 2,979 | | | | | 5,364 | | | | | 6,680 | | | ||||||
Sleep therapy | | | | 33,802 | | | | | 30,660 | | | | | | 36,584 | | | | | 34,213 | | | | | 70,386 | | | | | 64,873 | | | ||||||
Wound care | | | | 5,531 | | | | | 455 | | | | | | 6,561 | | | | | 666 | | | | | 12,092 | | | | | 1,121 | | | ||||||
Durable medical equipment | | | | 3,067 | | | | | 3,101 | | | | | | 3,900 | | | | | 3,219 | | | | | 6,967 | | | | | 6,320 | | | ||||||
Capitation revenues | | | | 2,559 | | | | | 2,384 | | | | | | 2,574 | | | | | 2,389 | | | | | 5,133 | | | | | 4,773 | | | ||||||
| | | $ | 142,003 | | | | $ | 110,842 | | | | | $ | 151,072 | | | | $ | 120,082 | | | | $ | 293,075 | | | | $ | 230,924 | | |
| | Three months ended March 31, | | | Three months ended June 30, | | Six months ended June 30, | | ||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | | 2021 | | 2020 | | 2021 | | 2020 | | ||||||||||||||||||||||||
Government | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Medicare | | | $ | 39,018 | | | | $ | 29,331 | | | | | $ | 41,044 | | | | $ | 32,309 | | | | $ | 80,062 | | | | $ | 61,640 | | | ||||||
Veterans Administration | | | | 13,557 | | | | | 15,956 | | | | | | 12,124 | | | | | 15,198 | | | | | 25,681 | | | | | 31,154 | | | ||||||
Medicaid | | | | 6,848 | | | | | 4,866 | | | | | | 7,301 | | | | | 5,326 | | | | | 14,149 | | | | | 10,192 | | | ||||||
Other | | | | 1,644 | | | | | 1,201 | | | | | | 1,754 | | | | | 1,394 | | | | | 3,398 | | | | | 2,595 | | | ||||||
Government | | | | 61,067 | | | | | 51,354 | | | | | | 62,223 | | | | | 54,227 | | | | | 123,290 | | | | | 105,581 | | | ||||||
Commercial | | | | 72,236 | | | | | 52,293 | | | | | | 78,388 | | | | | 57,488 | | | | | 150,624 | | | | | 109,781 | | | ||||||
Patient | | | | 8,700 | | | | | 7,195 | | | | | | 10,461 | | | | | 8,367 | | | | | 19,161 | | | | | 15,562 | | | ||||||
| | | $ | 142,003 | | | | $ | 110,842 | | | | | $ | 151,072 | | | | $ | 120,082 | | | | $ | 293,075 | | | | $ | 230,924 | | |
| Balance at December 31, 2020 | | | $ | 5,753 | | | Balance at December 31, 2020 | | | $ | 5,753 | | | ||
| Addition for acquisition | | | | 1,520 | | | Addition for acquisitions | | | | 3,643 | | | ||
| Balance at March 31, 2021 | | | $ | 7,273 | | | Payments | | | | (250) | | | ||
| Change in fair value | | | | (560) | | | |||||||||
| Balance at June 30, 2021 | | | $ | 8,586 | | |
| | March 31, 2021 | | December 31, 2020 | | | June 30, 2021 | | December 31, 2020 | | ||||||||||||||||
Patient service equipment | | | $ | 274,678 | | | | $ | 256,382 | | | | | $ | 284,639 | | | | $ | 256,382 | | | ||||
Furniture, office equipment, computers and software | | | | 49,029 | | | | | 48,249 | | | | | | 49,768 | | | | | 48,249 | | | ||||
Vehicles | | | | 24,550 | | | | | 24,282 | | | | | | 25,240 | | | | | 24,282 | | | ||||
Leasehold improvements | | | | 7,252 | | | | | 6,810 | | | | | | 7,545 | | | | | 6,810 | | | ||||
| | | | 355,509 | | | | | 335,723 | | | | | | 367,192 | | | | | 335,723 | | | ||||
Less accumulated depreciation | | | | (165,776) | | | | | (158,016) | | | | | | (174,402) | | | | | (158,016) | | | ||||
| | | $ | 189,733 | | | | $ | 177,707 | | | | | $ | 192,790 | | | | $ | 177,707 | | |
| Balance at December 31, 2020 | | | $ | 273,237 | | | Balance at December 31, 2020 | | | $ | 273,237 | | | ||
| Acquisition | | | | 8,203 | | | Acquisitions | | | | 21,224 | | | ||
| Balance at March 31, 2021 | | | $ | 281,440 | | | Balance at June 30, 2021 | | | $ | 294,461 | | |
| | March 31, 2021 | | December 31, 2020 | | | June 30, 2021 | | December 31, 2020 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Gross carrying amount | | Accumulated amortization | | Net Amount | | Gross carrying amount | | Accumulated amortization | | Net Amount | | | Gross carrying amount | | Accumulated amortization | | Net Amount | | Gross carrying amount | | Accumulated amortization | | Net Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets subject to amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Tradename | | | $ | 23,355 | | | | $ | 10,176 | | | | $ | 13,179 | | | | $ | 23,002 | | | | $ | 9,779 | | | | $ | 13,223 | | | | | $ | 23,649 | | | | $ | 10,579 | | | | $ | 13,070 | | | | $ | 23,002 | | | | $ | 9,779 | | | | $ | 13,223 | | | ||||||||||||
Other intangibles | | | | 16,656 | | | | | 3,493 | | | | | 13,163 | | | | | 11,250 | | | | | 2,198 | | | | | 9,052 | | | | | | 28,178 | | | | | 4,843 | | | | | 23,335 | | | | | 11,250 | | | | | 2,198 | | | | | 9,052 | | | ||||||||||||
Total intangible assets | | | $ | 40,011 | | | | $ | 13,669 | | | | $ | 26,342 | | | | $ | 34,252 | | | | $ | 11,977 | | | | $ | 22,275 | | | | | $ | 51,827 | | | | $ | 15,422 | | | | $ | 36,405 | | | | $ | 34,252 | | | | $ | 11,977 | | | | $ | 22,275 | | |
| 2021 (remaining) | | | | $ | 4,224 | | |
| 2021 (remaining) | | | $ | 6,002 | | | 2022 | | | | 7,287 | | | ||
| 2022 | | | | 6,841 | | | 2023 | | | | 4,901 | | | ||
| 2023 | | | | 4,456 | | | 2024 | | | | 3,328 | | | ||
| 2024 | | | | 1,942 | | | 2025 | | | | 3,183 | | | ||
| 2025 | | | | 1,621 | | | Thereafter | | | | 13,482 | | | ||
| Thereafter | | | | 5,480 | | | | | | $ | 36,405 | | | ||
| | | | $ | 26,342 | | | |
| | March 31, 2021 | | December 31, 2020 | | | June 30, 2021 | | December 31, 2020 | | ||||||||||||||||
Accrued salaries and wages | | | $ | 19,976 | | | | $ | 14,840 | | | | | $ | 16,491 | | | | $ | 14,840 | | | ||||
Accrued insurance and other claims | | | | 9,005 | | | | | 8,810 | | | | | | 9,200 | | | | | 8,810 | | | ||||
Accounts receivable credit balances | | | | 9,464 | | | | | 8,983 | | | | | | 9,783 | | | | | 8,983 | | | ||||
Accrued extended vendor payment terms | | | | 25,961 | | | | | 16,849 | | | | | | 19,088 | | | | | 16,849 | | | ||||
Accrued estimated settlement payment | | | | — | | | | | 1,752 | | | | | | — | | | | | 1,752 | | | ||||
Sales tax payable | | | | 419 | | | | | 419 | | | | | | 419 | | | | | 419 | | | ||||
Other | | | | 2,724 | | | | | 2,233 | | | | | | 3,731 | | | | | 2,233 | | | ||||
| | | $ | 67,549 | | | | $ | 53,886 | | | | | $ | 58,712 | | | | $ | 53,886 | | |
| | March 31, 2021 | | December 31, 2020 | | | June 30, 2021 | | December 31, 2020 | | ||||||||||||||||
Capital lease obligations with interest implied at fixed rates, due in equal monthly installments, maturing from April 2021 through July 2025, collateralized by equipment | | | $ | 37,067 | | | | $ | 35,516 | | | |||||||||||||||
Capital lease obligations with interest implied at fixed rates, due in equal monthly installments, maturing from July 2021 through July 2025, collateralized by equipment | | | $ | 39,913 | | | | $ | 35,516 | | | |||||||||||||||
Rotech Healthcare Inc. Acquisition Revolving Credit Facility | | | | 13,000 | | | | | — | | | | | | 31,500 | | | | | — | | | ||||
Rotech Healthcare Inc. Credit Facility | | | | 330,813 | | | | | 335,000 | | | | | | 326,625 | | | | | 335,000 | | | ||||
Rotech Healthcare Holdings Credit Facility | | | | 149,268 | | | | | 144,368 | | | | | | 154,174 | | | | | 144,368 | | | ||||
Subtotal | | | | 530,148 | | | | | 514,884 | | | | | | 552,212 | | | | | 514,884 | | | ||||
Less unamortized debt issuance costs | | | | 1,565 | | | | | 1,654 | | | | | | 1,479 | | | | | 1,654 | | | ||||
Less current portion of debt | | | | 34,747 | | | | | 33,513 | | | | | | 38,657 | | | | | 33,513 | | | ||||
Debt, less current portion | | | $ | 493,836 | | | | $ | 479,717 | | | | | $ | 512,076 | | | | $ | 479,717 | | |
| For the years ending December 31: | | | | | | | For the years ending December 31: | | | | | | | ||
| 2021 (remaining) | | | $ | 15,441 | | | 2021 (remaining) | | | $ | 13,120 | | | ||
| 2022 | | | | 14,396 | | | 2022 | | | | 17,114 | | | ||
| 2023 | | | | 8,483 | | | 2023 | | | | 9,901 | | | ||
| 2024 | | | | 799 | | | 2024 | | | | 1,679 | | | ||
| 2025 | | | | 42 | | | 2025 | | | | 42 | | | ||
| Future minimum finance lease payments | | | | 39,161 | | | Future minimum finance lease payments | | | | 41,856 | | | ||
| Less amounts representing interest | | | | 2,094 | | | Less amounts representing interest | | | | 1,943 | | | ||
| Present value of minimum finance lease payments | | | | 37,067 | | | Present value of minimum finance lease payments | | | | 39,913 | | | ||
| Less current portion | | | | 17,997 | | | Less current portion | | | | 21,907 | | | ||
| Long-term portion | | | $ | 19,070 | | | Long-term portion | | | $ | 18,006 | | |
| For the years ending December 31: | | | | | | | For the years ending December 31: | | | | | | | ||
| 2021 (remaining) | | | $ | 26,919 | | | 2021 (remaining) | | | $ | 20,751 | | | ||
| 2022 | | | | 30,413 | | | 2022 | | | | 33,024 | | | ||
| 2023 | | | | 174,249 | | | 2023 | | | | 180,506 | | | ||
| 2024 | | | | 17,529 | | | 2024 | | | | 18,392 | | | ||
| 2025 | | | | 281,038 | | | 2025 | | | | 299,539 | | | ||
| | | | $ | 530,148 | | | | | | $ | 552,212 | | |
| For the years ending December 31: | | | | | | | For the years ending December 31: | | | | | | | ||
| 2021 (remaining) | | | $ | 6,918 | | | 2021 (remaining) | | | $ | 4,944 | | | ||
| 2022 | | | | 6,822 | | | 2022 | | | | 7,662 | | | ||
| 2023 | | | | 3,745 | | | 2023 | | | | 4,369 | | | ||
| 2024 | | | | 1,113 | | | 2024 | | | | 1,356 | | | ||
| 2025 | | | | 639 | | | 2025 | | | | 742 | | | ||
| Thereafter | | | | 293 | | | Thereafter | | | | 320 | | | ||
| | | | $ | 19,530 | | | | | | $ | 19,393 | | |
| Cash | | | $ | 30 | | | | Six months ended June 30, | | |||||||||||
| Accounts receivable | | | | 606 | | | | 2021 | | 2020 | | |||||||||
| Inventory | | | | 101 | | | ||||||||||||||
| Property and equipment | | | | 1,496 | | | ||||||||||||||
| Intangible assets | | | | 5,759 | | | ||||||||||||||
| Goodwill | | | | 8,202 | | | ||||||||||||||
| Other assets | | | | 10 | | | ||||||||||||||
| Total assets acquired | | | $ | 16,204 | | | ||||||||||||||
| Accounts payable | | | $ | 512 | | | ||||||||||||||
| Accrued expenses and other liabilities | | | | 9 | | | ||||||||||||||
| Deferred revenue | | | | 148 | | | ||||||||||||||
| Deferred tax liability | | | | 1,650 | | | ||||||||||||||
| Total liabilities assumed | | | $ | 2,319 | | | ||||||||||||||
| Total purchase price | | | $ | 13,885 | | | ||||||||||||||
Cash | | | $ | 1,836 | | | | | 258 | | | ||||||||||
Accounts receivable | | | | 3,110 | | | | | 515 | | | ||||||||||
Inventory | | | | 813 | | | | | 137 | | | ||||||||||
Prepaid expense | | | | 26 | | | | | 6 | | | ||||||||||
Property and equipment | | | | 3,676 | | | | | 2,365 | | | ||||||||||
Intangible assets | | | | 17,575 | | | | | 4,260 | | | ||||||||||
Goodwill | | | | 21,224 | | | | | 11,341 | | | ||||||||||
Other assets | | | | 12 | | | | | — | | | ||||||||||
Total assets acquired | | | $ | 48,272 | | | | $ | 18,882 | | | ||||||||||
Accounts payable | | | $ | 3,281 | | | | | 70 | | | ||||||||||
Accrued expenses and other liabilities | | | | 146 | | | | | — | | | ||||||||||
Deferred revenue | | | | 780 | | | | | 465 | | | ||||||||||
Current portion debt | | | | 3,403 | | | | | — | | | ||||||||||
Other long-term liabilities | | | | 270 | | | | | — | | | ||||||||||
Deferred tax liability | | | | 4,414 | | | | | 1,705 | | | ||||||||||
Total liabilities assumed | | | $ | 12,294 | | | | $ | 2,240 | | | ||||||||||
Total purchase price | | | $ | 35,978 | | | | $ | 16,642 | | |
| | | Three months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenues | | | | $ | 143,030 | | | | | $ | 112,841 | | |
Operating income | | | | $ | 26,151 | | | | | $ | 15,063 | | |
| | Three months ended March 31, | | | Three months ended June 30, | | Six months ended June 30, | | ||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | | 2021 | | 2020 | | 2021 | | 2020 | | ||||||||||||||||||||||||
Revenue | | | $ | 507 | | | | $ | — | | | |||||||||||||||||||||||||||
Revenues | | | $ | 161,019 | | | | $ | 136,616 | | | | $ | 304,049 | | | | $ | 249,457 | | | |||||||||||||||||
Operating income | | | $ | 168 | | | | $ | — | | | | | $ | 25,012 | | | | $ | 21,234 | | | | $ | 51,163 | | | | $ | 36,297 | | |
| | | Three months ended June 30, | | | Six months ended June 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2021 | | | 2020 | | ||||||||||||
Revenue | | | | $ | 5,399 | | | | | $ | 382 | | | | | $ | 7,315 | | | | | $ | 382 | | |
Operating income | | | | $ | 1,218 | | | | | $ | 72 | | | | | $ | 1,753 | | | | | $ | 72 | | |
| Filing Fee—Securities and Exchange Commission | | | | *$ | | | |
| Fee—Financial Industry Regulatory Authority, Inc. | | | * | | |||
| Listing Fee—Nasdaq | | | * | | |||
| Fees and Expenses of Counsel | | | * | | |||
| Printing Expenses | | | * | | |||
| Fees and Expenses of Accountants | | | * | | |||
| Transfer Agent and Registrar’s Fees | | | * | | |||
| Miscellaneous Expenses | | | * | | |||
| Total | | | | *$ | | | |
| Exhibit Number | | | Exhibit Description | | ||||
| | 1 | .1† | | | | | ||
| | 3 | .1† | | | | | ||
| | 3 | .2† | | | | | ||
| | 4 | .1† | | | | | ||
| | 5 | .1* | | | | Opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP as to the validity of the securities being offered | | |
| | 10 | .1† | | | | Second Amended and Restated Credit Agreement, dated as of December 17, 2020, by and among Rotech Healthcare Inc., a Delaware corporation, Rotech Intermediate Holdings LLC, a Delaware limited liability company, the other guarantors party thereto, the several banks and other financial institutions or entities from time to time party thereto as lenders, and Truist Bank, as administrative agent | | |
| | 10 | .2† | | | | First Amendment to Second Amended and Restated Credit Agreement, dated as of June 3, 2021, by and among Rotech Healthcare Inc., a Delaware corporation, Rotech Intermediate Holdings LLC, a Delaware limited liability company, the other guarantors party thereto, Truist Bank, as administrative agent, and the several lenders party thereto | | |
| | 10 | .3* | | | | Governance Agreement by and among Rotech Healthcare Holdings Inc. and certain of its Stockholders | | |
| | 10 | .4† | | | | | ||
| | 10 | .5† | | | | | ||
| | 10 | .6† | | | | | ||
| | 10 | .7† | | | | | ||
| | 10 | .8† | | | | | ||
| | 10 | .9† | | | | | ||
| | 10 | .10† | | | | | ||
| | 10 | .11† | | | | | ||
| | 10 | .12† | | | | | ||
| | 10 | .13† | | | | | ||
| | 10 | .14† | | | | | ||
| | 10 | .15† | | | | | ||
| | 10 | .16† | | | | | ||
| | 10 | .17† | | | | | ||
| | 10 | .18† | | | | | ||
| | 10 | .19* | | | | Form of Amended and Restated Registration Rights Agreement by and between Rotech Healthcare Holdings Inc. and the stockholders party thereto | | |
| | 21 | .1† | | | | | ||
| | 23 | .1 | | | | | ||
| | 23 | .2* | | | | Consent of Paul, Weiss, Rifkind, Wharton & Garrison LLP (included in Exhibit 5.1) | | |
| | 24 | .1† | | | | |
| Signature | | | Title | |
| /s/ Timothy C. Pigg Timothy C. Pigg | | | President and Chief Executive Officer (Principal Executive Officer) | |
| /s/ Thomas J. Koenig Thomas J. Koenig | | | Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer) | |
| * James Bloem | | | Director | |
| * Timothy Lavelle | | | Director | |
| * Robin Menchen | | | Director | |
| * David A. Reganato | | | Director | |
| * Mark Stolper | | | Director | |
| * Michael Wartell | | | Director | |
| *By: | | | /s/ Steven Burres | |
| | | | Steven Burres Attorney-in-Fact | |