Acadia HealthCenter presentation – Online Nursing Essays

I need an explanation for this Health & Medical question to help me study.

 

Order instructions: Deliverable 4. Acadia Health care company

Power point. 2 slides answer to 2 questions, 100 speaker notes for each slide

1 Is this client average audit risk? Low risk? High risk? Why? (In a nutshell)

2 Should this client be brought on, if new or retained? You can also  use the last information from  presentation of this company

Prof. F. Kass Term Project Submission Cover Sheet Course Section Term Deliverable # ACCT4501 TD9_6736 Fall 2022 2 Connecting Theory to Practice – Firm Level Risk Analysis Title of Deliverable Company Team Members Acadia Healthcare Company, Inc. 1 2 3 4 Team Leader Certification I hereby certify that: 1. I am the appointed Manager for this deliverable. 2. Each of my team members worked to 100% of the expectation on this project. 3. If any team member did not work to expectation, I have indicated next to their name (above) the percentage of the expectation they did work. (You must be able to explain any reduction in the work.) 4. No part of this submission was copied or otherwise plagiarized. All rules of academic integrity have been adhered to. Name Signature 1. Based on your research of disaster preparedness for hospitals what are the three or four types of disasters that you consider most probable and dangerous and why? Acadia is a leading provider of behavioral healthcare services across the United States. As of June 30, 2022, Acadia operated a network of 246 behavioral healthcare facilities in 39 states and Puerto Rico. Given its geographic diversity, Acadia is subject to environmental risks associated with inclement weather and natural disasters such as hurricanes, floods, and wildfires. In the annual report for 2021, management once again refers to such risks “Some of our facilities are located in areas prone to hurricanes or wildfires. Natural disasters have historically had a disruptive effect on the operations of facilities and the patient populations in such areas. Our business activities could be significantly disrupted by wildfires, hurricanes or other natural disasters, and our property insurance may not be adequate to cover losses from such wildfires, storms, or other natural disasters.”1 The following events are examples of this. Hurricane Dorian weakened patient volumes in some of the company’s North Carolina and Florida facilities in September 2019, while wildfires in California in October 2019 necessitated the evacuation of three of the company’s facilities and dampened the patient volumes of others. The company’s financial results for the third quarter of 2021 were adversely affected by disruptions from Hurricane Ida in Louisiana, including the temporary evacuation of one facility. Also, for the reason that with more than 22,500 employees serving approximately 70,000 patients daily, Acadia is subject to biological hazards. A pandemic, epidemic, or outbreak of an infectious disease such as the coronavirus known as COVID-19 can reduce the public’s confidence in healthcare facilities and negatively affect the company’s reputation. New patients may not seek care from facilities involved or perceived to be involved in the care of patients with infectious diseases. Further, this might cause a temporary shutdown or diversion of patients, by disrupting or delaying production and delivery of pharmaceuticals and other medical supplies or by causing staffing shortages in company’s facilities. Although Acadia have disaster plans in place and operate pursuant to infectious 1 https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d disease protocols, the potential impact of a pandemic, epidemic or outbreak of an infectious disease with respect to its markets or its facilities is difficult to predict. 2. Based on your research about your target company how do their disaster plans meet the standards that you have learned about? Are they prepared for these disasters? Healthcare providers and their suppliers must be compliant with “national emergency preparedness requirements to ensure adequate planning for both natural and man-made disasters, and coordination with federal, state, tribal, regional and local emergency preparedness systems.”2 These are published by CMS (The Centers for Medicare & Medicaid Services) in the Federal Register, with regulations stating that “Each provider and supplier will have its own set of Emergency Preparedness regulations incorporated into its set of conditions or requirements for certification”… in order “to participate in the Medicare or Medicaid program.”3 Having a disaster management plan in healthcare is fundamental, not just for compliance, but for healthcare disaster preparedness.4 Acadia Healthcare is a comprehensive treatment network comprising 246 facilities across the U.S. and Puerto Rico. Thus, any potential of business disruption which might occur due to environmental risks poses a significant financial impact to Arcadia’s financial performance. According to Arcadia’s Task Force on Climate-Related Financial Disclosures (TCFD), the Board of Directors and senior management team oversee and actively manage and mitigate climate-change related and environmental risks.5 These risk management topics are discussed on a cross-organizational scale, reviewed as part of the overall sustainability-risk evaluation, and later become included into operations decision-making processes. 2 https://www.cms.gov/Medicare/Provider-Enrollment-and-Certification/SurveyCertEmergPrep/Emergency-Prep-Rule https://www.cms.gov/Medicare/Provider-Enrollment-and-Certification/SurveyCertEmergPrep/HealthCareProviderGuidance 4 https://www.cms.gov/Medicare/Provider-Enrollment-andCertification/SurveyCertEmergPrep/Downloads/SandC_EPChecklist_SA.pdf 5 https://www.acadiahealthcare.com/about/social-responsibility/ceo-update-on-covid-19-impact/ 3 Since 2014, the Ebola Virus Disease (EVD), H1N1 pandemic, H3N2v in the United States, and Zika Virus have reinforced the need for disease control, prevention, and preparedness.6 When COVID19 manifested as a public health crisis internationally, Arcadia health care providers faced a variety of challenges, which included basic care and treatment of patients; segregation; infection control; waste management; personal protective equipment (PPE) and more. Acadia employs more than 22,500 employees that provide multiple levels of care for various behavioral health and substance use disorders and addictions. Continuing to perform essential functions and provide essential services during outbreaks of infectious diseases was vital to Acadia’s ability to remain a viable entity during times of increased threats. According to the 2021 Annual Report, an internal COVID-19 taskforce established Infection Prevention and Control training for all staff members, heightened screening protocols and implemented social distancing strategies.7 In compliance with state and federal regulations, visitation has also been suspended at all of the facilities within Arcadia network.8 “We have developed additional supply chain management processes, which includes extensive tracking and delivery of key personal protective equipment (“PPE”) and supplies and sharing resources across all facilities”. Therefore, based on the research of Acadia’s COVID-19 Response Initiatives and 2021 Annual Report, it can be established that Acadia closely followed infectious disease protocols, as well as recommendations and guidelines distributed by the Centers for Disease Control and Prevention (CDC), and the World Health Organization (WHO).9 In addition, according to their website, Acadia’s corporate quality and compliance teams, in conjunction with the chief medical officer, proactively monitored federal, local and regional updates and communicated them efficiently to all facilities. 6 https://acadiahealthcare.gcs-web.com/financial-information/annual-reports https://www.who.int/publications/i/item/WHO-2019-nCoV-HCF_assessment-Safe_environment-2020.1 8 https://www.acadiahealthcare.com/about/social-responsibility/covid-19-response-initiatives/ 9 https://www.acadiahealthcare.com/about/social-responsibility/covid-19-response-initiatives/ 7 3. Based on your research about your target company, and their hospitals, how did they manage during COVID? Did they meet their expectations or standards that were set by the various agencies? Explain. “We could experience supply chain disruptions and significant price increases in equipment, pharmaceuticals and medical supplies, particularly PPE”.10 Because of the pandemic, it caused supply chain issues for many businesses including but not limited to healthcare. Considering the fact that Acadia Healthcare has more than 22,500 employees serving approximately 70,000 patients daily, a disruption in the supply chain will have a large effect on their operations because if Acadia Healthcare if unable to get the materials that they need, they will be unable to service any current or new patients, and this will adversely affect their income. Acadia Healthcare has taken steps to reduce supply chain risk by “[securing] contracts with additional distributors for supplies”.11 By having a contract in place with different vendors whom Acadia Healthcare views as a reliable vendor, Acadia Healthcare can have some sort of guarantee that the supplies that they need will arrive in a timely manner. By having contracts in place to help mitigate the risk of supply chain disruptions, the company is also able to prevent sudden increase in the cost of their supplies. This is because when Acadia Healthcare is short on supplies and need the supplies within a day or two, it will because the company to purchase supplies not matter what the price is since they don’t have the time to find another vendor with a better price or that is the only vendor who has the supplies that they need at the moment. Acadia Healthcare has also followed many of the “criteria established by the CDC” such as “restricting or suspending visitor access, screening patients and staff who enter [their] facilities”.12 Acadia Healthcare has also “implemented plans to vaccinate” all of their employees.13 By having many precautions in place, the company can ensure that there will be less cases of covid happening in their facility. This will benefit 10 https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4) https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4) 12 https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4) 13 https://acadiahealthcare.gcs-web.com/static-files/a236a975-6f02-437d-af96-32281d3d278d (p.4) 11 Acadia Healthcare since they have 22,500 employees and if there is confirmed cases, it will spread to their other employees quickly which would in turn cause an even greater shortage of workers. “The Acadia facilities averaged 4.8 violations per inspection, 60% higher than the 3 violations per inspection averaged by the UHS facilities”.14 Acadia Healthcare has not met the expectations that were set by various agencies. On average Acadia Healthcare has more violations compared to other healthcare organizations and these violations are often “involving patient safety or care deficiencies” problems. Because of these violations, Acadia Healthcare had to deal with many “criminal and civil government investigations”. “A lot of the problems Stanford sees boil down to one thing: staffing. State law requires one staff member for every six patients during the day. At night, the ratio is one per eight. But that was not always happening at Piney Ridge”.15 Another area where Acadia Healthcare had not meet the expectations of the various agencies is involving the ratio of staffs to patients. Often, Acadia Healthcare is short of staff. This is mainly a result of the pandemic where many employees are testing positive causing them to have to be in isolation for a certain period of time. While these employees are in isolation, Acadia Healthcare would need to find new employees to temporarily do the job of the previous employees. However, considering the fact that there is a national shortage of healthcare professionals, it makes it difficult for Acadia Healthcare to hire enough employees to prevent understaffing. 4. What can your target company do to adjust their policies and practices going forward? Why is disaster preparedness a risk issue? As we noted before, Acadia Healthcare Company has concentrations of different types of facilities in different states and regions, and in some of them there are cases of natural disasters. In addition, there is still the risk of a seasonal outbreak of COVID which can lead to unforeseen risks. 14 (http://www.mavalue.org/research/acadiahealthcare/#:~:text=The%20Acadia%20facilities%20averaged%204.8,and%20staffing%20problems%20(quadruple) 15 http://www.psychcrime.org/news/index.php?vd=3447&t=Acadia+Healthcare%3A+Investigation+Reveals+Years+of+Lic ensing+Issues+at+Piney+Ridge+Treatment+Center The company institutions must be prepared to take core priority action to be ready to address the challenges of a crisis. There are advantages to having a plan in place to execute in the case of an emergency. Furthermore, an emergency plan improves worker comprehension of safety and indicates management’s commitment to the problem. You may prepare for unpredictable circumstances this way. Confusion may arise when presented with a crisis due to the need to react quickly despite a lack of time, knowledge, and skilled personnel. Acadia Healthcare must be financially secure to deliver life-saving emergency medical services to the community. Hospitals depend on a complex financial framework with several revenue sources. Acadia Healthcare might benefit from retail sales, research funding, financial donations, and investment returns. Acadia Hospitals must generate income from several sources, including clients, stakeholders, and government subsidies, to provide important healthcare services to the local people. Operating revenue is the money earned by a healthcare facility from providing actual patient care. Acadia Healthcare might benefit from retail sales, research funding, financial donations, and investment returns. The impacts of panic and financial hardship may be reduced by being prepared for a disaster. Everyone should know about storm shelter sites and the community’s fire safety measures. The annual lump sum payment for disaster relief, rehabilitation, rebuilding, and other works or services cannot exceed 5% of the fiscal year’s estimated revenue from regular sources. Hospitals must utilize their catastrophe fund in the event of a catastrophic tragedy. In the case of a natural disaster, Acadia medical institutions in certain places will be asked to assume extra responsibility. To help with this, the function-based budgeting approach should be assessed and perhaps improved. 5. Choose one hospital facility that is managed by your target company. Were there comments, good or bad, about this facility? Should these comments be considered by an auditor? Why? As an operator of inpatient behavioral health hospitals, Acadia faces high social risk. Any incident, such as a patient fatality or a patient not receiving appropriate care at one of Acadia’s facilities, can result in increased regulatory burdens, government investigations, and negative publicity. We regret to note that the company we have chosen has been involved in a several scandals. In 2019, Acadia’s New Mexico Youth Treatment Center closed after allegations of abuse, multiple lawsuits, and loss of state regulatory certification. In the month before to its closure, seven lawsuits were filed against the Desert Hills of New Mexico facility in Albuquerque and its parent company alleging that the company had failed to protect its customers from physical and sexual abuse by its employees and other patients.16 That same year, the United States Attorney’s Office announced a $17 million fraud settlement with Acadia Healthcare in West Virginia, the largest healthcare fraud settlement in the state’s history. Under the settlement agreement, Acadia, which operated the treatment centers since February 2015, agreed to pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million between January 1, 2012, and July 31, 2018. 17 In 2021, three current and former executives brought a class action lawsuit against Acadia Healthcare stating that the company misled investors. The action, which dates back to 2018, alleges the defendants misled investors after stock prices dropped as a result of understaffing and other issues.18 Givens Acadia’s track record, chairs of the Minnesota Nurses Association (MNA), which represents 22,000 nurses, 80 percent of all bedside hospital nurses in Minnesota, are deeply concerned with Minnesota Health Fairview’s decision to partner with a profit-driven corporation, Acadia Healthcare, which will have 85 percent ownership of this new venture. In a letter to Commissioner Jan Malcolm dated June 27, 2022, they indicate that “Nurses believe that healthcare in Minnesota should put patients before profits. We believe that safe 16 https://www.nashvillepost.com/acadia-facility-closes-amid-abuse-allegations/article_707ab44b-adbf-5af8-bf6a5b48ac61127d.html 17 https://www.justice.gov/usao-sdwv/pr/united-states-attorney-announces-17-million-healthcare-fraud-settlement 18 https://bhbusiness.com/2021/01/22/lawsuit-alleging-acadia-misled-investors-moves-forward/ patient care should be the top priority in Minnesota hospitals, not the profits of hospital executives or corporate bottom lines and results for shareholders.”19 As we see, the Company is subject to medical malpractice, overpayment, breach of contract, violation of securities laws, tort claims and other legal actions in the ordinary course of business. We are deeply convinced that comments like the letter from the Minnesota Nurse Association should be considered by auditors because some of the company’s actions involved large claims, as well as significant defense costs. 19 https://www.health.state.mn.us/data/economics/moratorium/fairviewacadia/docs/mnaletter.pdf Deliverable Four: Communicating Results (PowerPoint Presentation) The main goal of deliverable four is to communicate the issues you discovered by preparing and presenting your findings to the class by making a recorded PowerPoint presentation. Deliverable four is summary statement of deliverables one, two and three. Students will continue to work in assigned groups to complete deliverable four and will be graded as a group. Deliverable Four Objectives: 1. Demonstrate your understanding how to contribute to a collaborative PowerPoint presentation. 2. Gain an understanding how to record narrative. 3. Gain an understanding of the importance in communicating problems and findings to help users of accounting information make business decisions. 4. Demonstrate good grammar, formatting, and organization. Deliverable Four Requirements: 1. 2. 3. 4. 5. Collaborate. Present findings. Record a sound bite. Rehearse the presentation. The ’Manager’ for this deliverable uploads the document via Blackboard. Requirement #1: Collaborate Students will continue to collaborate within their assigned groups to complete this deliverable, within their assigned groups to complete deliverable four, and the work product will be group graded. Requirement #2: Present Findings The partner in charge of the audit has been told the manager that he must fly out to meet another client. S/He needs to see the risk analysis the team has done on this hospital corporation, and s/he doesn’t have much time. S/He would like for your team to put together a short PowerPoint presentation summarizing your work it should: 1 2 3 4 5 6 Start with one slide introducing the client. Just a few basics. Contain the highlights of you vertical and horizontal analysis. Is there anything that stands out as unusual that might indicate an audit work.? Is there anything in the ration analysis that might indicate an audit risk? Based on your analysis is there anything in the MD&A that seems off? Based on your analysis of the company’s disaster preparedness and their response to COVID is there anything the partner should know? Based on your research about the company’s hospital in the news and/or patient comments is there anything outstanding that the partner should know? 7 8 Is this client average audit risk? Low risk? High risk? Why? (In a nutshell) Should this client be brought on, if new or retained? Your group will present summarizing results of any information/analysis your group found most interesting. The key to success in this deliverable is to use less words and more visuals. The reason that you are recording audio is to explain your slides, not to read word for word a paragraph of information. Presenting pictures and/or graphs, with limited text should be your goal. Text that is mall and difficult to read is not optimal. A lot of text on a slide is also not optimal. Since you are presenting to a partner the presentations should be professional. Flashbangs are not necessary but plain white backgrounds are also not appropriate. Th slide show should move along. The partner should not be expected t have to move the slides on his own or start the sound every slide. There are ways to do this. Check with PowerPoint gurus in the library or online if you don’t know how. Requirement #3: Record a Sound Bite Each member of the group will record an approximately 90 second sound bite explaining the group’s findings. Group members control who presents what information. If a member of your group is unable to speak, someone else may present on that person’s behalf. The overall goal is to develop the ability to present an interesting finding as concisely as possible. If four members are in a group, that means the entire presentation should be no more than six minutes. If you do not know how to make a recorded presentation on a PowerPoint, the following videos are instructive. Video examples of narrating in PowerPoint: • How to Record Narration for a PowerPoint Presentation For Dummies: https://www.youtube.com/watch?v=QZp3jumnWUg • Microsoft Office Support: https://support.office.com/en-us/article/record-a-slide-show-with-narration-and-slide-timings0b9502c6-5f6c-40ae-b1e7-e47d8741161c Requirement #4: Rehearse the Presentation This is a critical part that cannot be overlooked. Rehearse the presentation several times to make sure it flows well and is within time limits. It is imperative that you be understood when others are listening. You may want to consider making a recording and have your manager or someone else view and listen it who is not used to hearing you speak. That person must be able to understand everything you say and find it interesting. Therefore, make sure that your audio capability is working correctly. Ultimately, if the instructor cannot understand you, it will be difficult to assess this part of your grade. You can probably never rehearse enough. Requirement #5: Upload Document for Grading Overall, the presentation should be between six to eight slides. Try not to place a bunch of text on the slide and then read it word for word. People can read. What the audience wants see and hear is what you have to say and how you present it. Use graphs, illustrations, pictures to get your point across. It is normally more effective. Grammar, Formatting and Organization is a skill which should be demonstrated by accountants for all work. Therefore, it is part of the grade. Only PowerPoint files will be accepted. Do not upload any other file types. As with the other deliverables, this is a group graded collaborative effort. Each group member works with the leader to organize the presentation. As discussed in the grading section for deliverables one, two, and three it is inevitable that you will share ideas and see other member’s work. You should not copy other groupk’s work without acknowledging them. If you do not acknowledge them, it is considered plagiarism. Each paper submitted should reflect a significant work product that your group created. Late submissions lose 50% credit if submitted within one week after the due date. After one week past the due date, no credit will be given. Note that this deliverable still has to be completed to advance to the next deliverable. If it is not completed, no further credit will be given for the term project. Remember to put the ‘Group Submission Sheet’, signed by the manager, as your first slide. See Appendix A, Grading Rubric for Deliverable Four. _Deliverable_Four_ProcessIf you have further questions about Deliverable #4, check out the FAQ page under Additional Questions Concerning Deliverable Four: PowerPoint Presentation. Requirement #6: Upload Document for Discussion Upload your PowerPoint to the Discussion Board. Students are required to make at least three substantial comments on PowerPoints uploaded by other teams. Prof. F. Kass Term Project Submission Cover Sheet Course Section Term Deliverable # ACCT4501 TD9_6736 Fall 2022 2 Connecting Theory to Practice – Firm Level Risk Analysis Title of Deliverable Company Team Members Acadia Healthcare Company, Inc. 1 2 3 4 Team Leader Certification I hereby certify that: 1. I am the appointed Manager for this deliverable. 2. Each of my team members worked to 100% of the expectation on this project. 3. If any team member did not work to expectation, I have indicated next to their name (above) the percentage of the expectation they did work. (You must be able to explain any reduction in the work.) 4. No part of this submission was copied or otherwise plagiarized. All rules of academic integrity have been adhered to. Name Signature We suppose that of all the risks that management discloses, the human capital risks could most adversely affect the income statement, balance sheet, and cash flow statement. Management notes in the 2021 Annual Report to Stockholders that the company’s “facilities face competition for staffing that may increase our labor costs and reduce our profitability” (p. 15). We would like to emphasize that wage costs are the most significant operating expense for Acadia, which, according to vertical analysis, account for 55.09%, 55.14%, 55.24% and 53.74% of the total net revenue for 2018, 2019, 2020 and 2021, respectively. The development of the simple linear regression model allowed us to predict the projected wage costs for 2022 that amounted to $1,325,987K. Next, we decided to find out what would happen in 2022 if all other data in the income statement remain the same, equal to the data for 2021, and only the amount of wage costs will change to $1,325,987K instead of $1,243,804K increasing by 6.6% and will amount to 57.3% of the total net revenue. As we can see, such adjustments led to changes not only in the income statement, but also in cash flow and balance sheet. On the income statement, an increase in wage costs would reduce net income by 43.1%. Net income will account for 4.7% of total net revenue for 2022, down 3.6% from 2021. On the cash flow, changes in net income would decrease net cash provided by operating activities by 22%. On the balance sheet, these changes decrease cash and cash equivalents by 61.42% and increase accumulated deficit by 68.63%. As we can see, the changes described above led to changes in all ratios without exception. The current liquidity ratio is 1.02 times, which is 0.2 less than in 2021. This ratio indicates that the company has $1.02 of current assets for every $1 of current liabilities. The receivable turnover ratio is 8.23 times, which is less than in 2021 but still demonstrates a very good ability to collect cash from customers. The debt to total assets ratio is 0.47 times, which is slightly more than in 2021 and shows that Acadia is performing well and depending less on debt. In other words, this ratio means the company has $1 in total liabilities to more than $2 of available total assets to pay that debt. Debt service coverage ratio is 0.72 times that means that there is only sufficient net operating income to cover 72% of annual debt payments. The gross profit margin shows that the company receives 38.8% of the profit after paying the cost of revenue, while it was 42.34% in 2021. The profit margin ratio has halved compared to 2021 and amounted to 4.69%. The return on assets ratio (ROA) shows that each dollar invested in assets by Acadia generated 2.29 cents of net income, down 1.09 cents from the 2021 ratio. The asset turnover ratio shows that for every dollar of assets, the company generated $0.49 in sales, up 8 cents from 2021 but half the healthcare industry average of $0.89, according to CSIMarket (https://csimarket.com/screening/index.php?s=at). Everything above confirms that the human capital risk most adversely affects the income statement, balance sheet, cash flow statement, and all ratios without exception. We would like to note that in our case, the concept of equipment refers specifically to property, plant and equipment which are fixed assets. In the company’s income statement, we find such a cost item as supply, which includes, among other things, the cost of medications. Supply is part of the cost of revenue and averages 4.16% of the total net revenue. Increasing its cost reduces the following ratios: receivable turnover, debt service coverage, gross profit margin, profit margin, and return on assets; and increases inventory turnover, and asset turnover. A 50% increase in the supply cost results in a 2% decrease in the gross profit margin and the profit margin. Only two ratios not related to the accounts of the income statement remained unchanged. They are the current ratio and debt to total assets. Management notes in the 2021 Annual Report to Stockholders that “During 2020 and 2021, COVID-19 resulted in fewer referrals to our facilities and lower voluntary admissions as individuals were less inclined to leave their homes and seek treatment” (page 18). From this statement we can conclude that the management is saying that their revenues are decreasing however that does not seem to be the case. If we look at the income statement, we can see that the company has a net income of 102.6 million in 2022 and 195 million in 2021 and had a net loss in 2020. If we take all these numbers into consideration, we can see that the company is still doing well despite the risk that the company is facing with regards to COVID-19. Although the company is profitable in 2021 and 2022, when we look at the cash flow, we can see that the amount of cash the company has has decreased significantly but the decrease was a result of cash flow from financing activities. The percentage change for cash flow from financing from 2021 to 2022 was up 3,301% compared to 18.44% in 2020 to 2021 and -7.91 in 2019 to 2021. This shows that the company has a large debt expense/relying on debt a lot which is the cause for the decrease in cash. Although the manager does mention that the company has financial risk, I believe that the reason why the manger decided to include that statement in the 10k is to use COVID-19 to make people think that the company isn’t doing so well with its current operations so it’s holdings in cash decreased however, the reality that the manager is trying to cover up is that it isn’t using managing it’s cash efficiently and it also isn’t balancing it’s use of equity and debt. Prof. F. Kass Term Project Submission Cover Sheet Course Section Term ACCT4501 TD9_6736 Fall 2022 Deliverable # Title of Deliverable Company 1 Create Excel Spreadsheet, Financial Analysis Acadia Healthcare Company, Inc. Team Members 1 2 3 4 Sohaib Ali Oxana Shifrina Maggie Wang Gulnoz Zakirova Team Leader Certification I hereby certify that: 1. I am the appointed Manager for this deliverable. 2. Each of my team members worked to 100% of the expectation on this project. 3. If any team member did not work to expectation, I have indicated next to their name (above) the percentage of the expectation they did work. (You must be able to explain any reduction in the work.) 4. No part of this submission was copied or otherwise plagiarized. All rules of academic integrity have been adhered to. Name Signature Horizontal Analysis Vertical Analysis Percentage Change (Current am.- Previous am)/Previous am. *100 Percentage of the Total Assets amount Acadia Healthcare Company, Inc. CONSOLIDATED BALANCE SHEETS For the Years Ended December 31 (In thousands, except share and per share amounts) 2017 2018 2019 2020 2021 2018 2019 2020 2021 2017 2018 2019 2020 Balance Sheet Changes Horizontal Analysis 2021 ASSETS Balance Sheet Vertical Analysis Total current assets Total current assets Total long-term assets Total current liabilities Total long-term liabilities Total long-term assets Total current liabilities Total long-term liabilities 100.00 92.70 92.66 92.12 89.62 90.00 400.00 365.39 Current assets: $ Cash and cash equivalents Accounts receivable, net (64.66) 1.05 0.82 1.45 5.83 2.81 296,925 67,290 318,087 288,863 273,551 281,332 7.13 (9.19) (5.30) 2.84 4.62 5.15 4.20 4.21 5.90 27,320 – $ 50,510 30,802 – $ 99,535 17,343 – $ 378,697 19,480 – $ 133,813 22,292 15,808 (24.94) 12.75 – (43.70) – 97.06 280.47 12.32 – 14.44 – 0.43 – 0.50 – 0.25 – 0.30 – 0.47 0.33 10,000 10,000 10,000 12,000 12,000 – – 20.00 – 0.16 0.16 0.15 0.18 0.25 17,588 2,049 3,030 6,792 10,807 (88.35) 47.88 124.16 59.11 0.27 0.03 0.04 0.10 0.23 21,427 4,787 15,056 9,028 2,129 19,205 5,055 2,380 10,340 1,989 10,661 4,075 4,786 13,723 1,349 10,025 4,851 897 5,818 1,469 10,786 4,786 1,523 1,884 (10.37) 5.60 (84.19) 14.53 (6.58) (44.49) (19.39) 101.09 32.72 (32.18) (5.97) 19.04 (81.26) (57.60) 8.90 7.59 (1.34) 69.79 (100.00) 28.25 0.33 0.07 0.23 0.14 0.03 0.31 0.08 0.04 0.17 0.03 0.15 0.06 0.07 0.20 0.02 0.15 0.07 0.01 0.09 0.02 0.23 0.10 0.03 0.04 80.00 350.00 70.00 300.00 61.17 Persentage Prepaid expenses Assets held for sale Workers’ compensation deposits – current portion Insurance receivable – current portion Other receivables Inventory Income taxes receivable Cost report receivable Other 250.00 107,335 Other current assets 81,820 – Current assets held for sale 64,967 – 61,332 88,846 1,809,815 79,886 (23.77) – – (20.60) (5.60) 30.25 – 1,937.02 (100.00) 1.67 – 1.33 – 0.94 0.94 1.68 1.29 27.85 – 182.19 Persentage 200.00 471,550 450,417 542,211 2,523,395 495,031 (4.48) 20.38 365.39 (80.38) 7.34 7.30 7.88 38.83 10.38 Property, plant and equipment, net 3,048,130 3,107,766 1,499,587 1,622,896 1,771,159 1.96 (51.75) 8.22 9.14 47.45 50.35 21.80 24.97 37.15 Goodwill 2,751,174 2,396,412 2,085,104 2,105,264 2,199,937 (12.89) (12.99) 0.97 4.50 42.82 38.82 30.31 32.39 46.14 87,348 88,990 68,826 68,535 70,145 1.88 (22.66) (0.42) 2.35 1.36 1.44 1.00 1.05 1.47 Deferred tax assets 3,731 3,468 3,339 3,209 3,080 (7.05) (3.72) (3.89) (4.02) 0.06 0.06 0.05 0.05 0.06 Operating lease right-of-use assets 12,997 60,524 97,795 96,937 133,761 365.68 61.58 (0.88) 37.99 0.20 0.98 1.42 1.49 2.81 Other assets 49,572 64,927 55,106 79,126 94,965 30.98 (15.13) 43.59 20.02 0.77 1.05 0.80 1.22 1.99 – – (100.00) – – – 36.74 – – 5,952,952 5,722,087 6,336,931 3,975,967 4,273,047 (3.88) 10.75 (37.26) 7.47 92.66 92.70 92.12 61.17 89.62 $ 6,424,502 – $ 6,172,504 $ 6,879,142 $ 6,499,362 $ 4,768,078 (3.92) 11.45 (5.52) (26.64) 100 100 100 100 100 $ $ $ Noncurrent assets held for sale Total long-term assets TOTAL ASSETS – 2,527,174 – – LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) Current liabilities: Current portion of long-term debt $ 18,594 (2.06) 28.05 251.38 (87.88) 0.54 0.55 0.63 2.36 0.39 Accounts payable 102,299 117,740 90,257 87,815 98,575 15.09 (23.34) (2.71) 12.25 1.59 1.91 1.31 1.35 2.07 Accrued salaries and benefits 99,047 113,299 93,595 124,912 137,845 14.39 (17.39) 33.46 10.35 1.54 1.84 1.36 1.92 2.89 – – 18,119 18,916 23,348 – – 4.40 23.43 – – 0.26 0.29 0.49 141,213 151,226 69,234 178,453 126,499 7.09 (54.22) 157.75 (29.11) 2.20 2.45 1.01 2.75 2.65 – – – 84,584 – – – – (100.00) – – – 1.30 Current portion of operating lease liabilities Other accrued liabilities Derivative instrument liabilities 34,830 $ 34,112 43,679 153,478 – – – 148,692 660,027 – – – 343.89 (100.00) – – 2.16 10.16 – Total current liabilities 377,389 416,377 463,576 1,308,185 404,861 10.33 11.34 182.19 (69.05) 5.87 6.75 6.74 20.13 8.49 Long-term debt 3,205,058 3,159,375 3,105,420 2,968,948 1,478,626 (1.43) (1.71) (4.39) (50.20) 49.89 51.18 45.14 45.68 31.01 Deferred tax liabilities 80,333 80,372 22,820 50,017 74,368 0.05 (71.61) 119.18 48.69 1.25 1.30 0.33 0.77 1.56 Operating lease liabilities – – 85,643 84,029 116,841 – – (1.88) 39.05 – – 1.24 1.29 2.45 Noncurrent derivative instrument liabilities – – 68,915 – – – – (100.00) – – – 1.00 – – 166,434 154,267 107,152 133,412 110,505 (7.31) (30.54) 24.51 (17.17) 2.59 2.50 1.56 2.05 2.32 – – 487,084 – – – – (100.00) – – – 7.08 – – Current liabilities held for sale Other long-term liabilities Noncurrent liabilities held for sale 3,451,825 3,394,014 3,877,034 3,236,406 1,780,340 (1.67) 14.23 (16.52) (44.99) 53.73 54.99 56.36 49.80 37.34 Total liabilities $ 3,829,214 $ 3,810,391 $ 4,340,610 $ 4,544,591 $ 2,185,201 (0.49) 13.92 4.70 (51.92) 59.60 61.73 63.10 69.92 45.83 Total long-term liabilities Shareholders’ equity: Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued – Common stock, $0.01 par value; 180,000,000 shares authorized; 89,028,158 and 88,024,395 issued and outstanding as of December 31, 2021 and 2020, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit – – – 871 874 877 880 890 0.34 0.34 0.34 1.14 0.01 0.01 0.01 0.01 0.02 2,517,545 (374,118) 428,573 2,541,987 (462,377) 252,823 2,557,642 (414,884) 361,746 2,580,327 (371,365) (310,386) 2,636,350 (119,751) 0.97 23.59 (41.01) 0.62 (10.27) 43.08 0.89 (10.49) (185.80) 2.17 (100.00) (61.42) 39.19 (5.82) 6.67 41.18 (7.49) 4.10 37.18 (6.03) 5.26 39.70 (5.71) (4.78) 55.29 (2.51) 2,517,489 (9.31) 7.37 (24.18) 32.54 40.05 37.80 36.42 29.23 52.80 22,417 28,806 33,151 55,315 65,388 28.50 15.08 66.86 18.21 0.35 0.47 0.48 0.85 1.37 $ 6,424,502 2,572,871 $ 6,172,504 $ 6,879,142 $ 6,499,362 $ 4,768,078 (3.92) 11.45 (5.52) (26.64) 100 100 100 100 100 $ $ $ $ $ Total equity Redeemable noncontrolling interests TOTAL LIABILITIES AND EQUITY – – 2,333,307 – 2,505,381 – 1,899,456 – – 49.80 150.00 30.00 100.00 20.00 38.83 37.34 20.13 50.00 10.00 20.38 10.33 6.75 7.34 5.87 (44.99) 10.75 (50.00) (37.26) (69.05) (100.00) (80.38) (150.00) 2018 10.38 8.49 6.74 – (16.52) 2017 (3.88) 7.88 7.30 7.47 14.23 11.34 (4.48) Intangible assets, net 56.36 54.99 53.73 50.00 40.00 – (1.67) Total current assets 60.00 2019 2020 Axis Title 2021 2018 2019 Axis Title 2020 2021 Horizontal Analysis Vertical Analysis Percentage Change (Current am.- Previous am)/Previous am. *100 Percentage of the Total net Revenue SOURCES of REVENUE Changes Horizontal Analysis SOURCES of REVENUE Vertical Analysis 60.00 40.00 2021 $ 684,292 364,598 1,147,884 93,425 24,195 2018 0.68 (0.33) 12.21 (46.37) (44.90) (100.00) 2019 (1.35) 5.12 12.70 (11.44) (4.44) – 2020 5.54 12.01 3.05 (17.20) 19.91 – 2021 14.68 10.46 10.60 (4.96) (10.41) – 2017 20.07 9.92 28.08 8.81 1.51 33.06 2018 30.09 14.72 46.92 7.04 1.24 – 2019 28.15 14.67 50.14 5.91 1.12 – 2020 28.55 15.79 49.66 4.70 1.29 – 2021 29.57 15.75 49.60 4.04 1.05 – 2,089,929 $ 2,314,394 (33.80) 5.44 4.06 10.74 101.44 100.00 100.00 100.00 100.00 2,089,929 2,314,394 (100.00) (32.85) 5.44 4.06 10.74 (1.44) 100.00 100.00 100.00 100.00 100.00 1,154,522 1,243,804 (31.69) 5.53 4.26 7.73 54.16 55.09 55.14 55.24 53.74 87,241 1,241,763 120,489 37,362 262,272 (32,819) 95,256 482,560 158,105 7,233 4,751 11,720 181,809 1,906,132 90,702 1,334,506 136,739 38,519 301,339 (17,900) 106,717 565,414 76,993 24,650 24,293 12,778 138,714 2,038,634 (28.82) (31.49) (43.92) (55.30) (26.57) (43.82) (37.37) 4.84 124.07 22.47 18.43 (29.32) 5.00 5.49 7.63 3.41 6.51 9.44 7.05 1.51 (100.00) (100.00) (28.81) (1.03) 5.04 2.00 4.10 1.72 5.29 1.05 8.34 (3.76) (15.60) (82.54) (44.60) (22.86) (1.24) 3.97 7.47 13.49 3.10 14.90 (45.46) 12.03 17.17 (51.30) 240.80 411.32 9.03 (23.70) 6.95 4.03 58.20 6.92 2.71 11.70 5.04 26.37 6.21 0.03 0.86 7.09 91.65 4.28 59.37 5.78 1.80 12.79 4.22 24.59 9.69 0.10 1.16 1.56 12.50 96.46 4.26 59.40 5.90 1.77 12.92 4.38 24.97 9.33 1.36 1.05 11.74 96.10 4.17 59.42 5.77 1.79 12.55 (1.57) 4.56 23.09 7.57 0.35 0.23 0.56 8.70 91.21 3.92 57.66 5.91 1.66 13.02 (0.77) 4.61 24.43 3.33 1.07 1.05 0.55 5.99 88.09 183,797 275,760 (71.54) 16.32 134.45 50.04 8.35 3.54 3.90 8.79 11.91 40,606 143,191 67,557 208,203 (73.37) (71.20) 153.20 (7.27) 61.87 168.60 66.37 45.40 1.31 7.04 0.52 3.02 1.25 2.65 1.94 6.85 2.92 9.00 (812,390) (12,641) – (124.39) (1,529.96) (98.44) – (12.23) 2.83 (38.87) (0.55) 50.00 20.00 40.00 (20.00) Percentage 2020 596,698 330,070 1,037,852 98,302 27,007 Percentage Acadia Healthcare Company, Inc. (40.00) (60.00) 30.00 20.00 (80.00) 10.00 (100.00) (120.00) Commercial Medicare Medicaid Self-Pay Other NHS (National Health Service_U.K.) 2018 0.68 (0.33) 12.21 (46.37) (44.90) 2019 (1.35) 5.12 12.70 (11.44) (4.44) 2020 5.54 12.01 3.05 (17.20) 19.91 2021 14.68 10.46 10.60 (4.96) (10.41) (100.00) – – – Commercial Medicare Medicaid Self-Pay Other NHS (National Health Service_U.K.) Categories of expenses Changes Horizontal Analysis 2017 20.07 9.92 28.08 8.81 1.51 2018 30.09 14.72 46.92 7.04 1.24 2019 28.15 14.67 50.14 5.91 1.12 2020 28.55 15.79 49.66 4.70 1.29 2021 29.57 15.75 49.60 4.04 1.05 33.06 – – – – Categories of expenses Vertical Analysis 70.00 30.00 60.00 20.00 50.00 10.00 (669,199) 195,562 (187.92) (162.75) (707.69) (129.22) 7.04 (9.21) 5.48 (32.02) 8.45 (2,933) (4,927) (207.32) 354.17 144.62 67.98 0.01 (0.01) (0.06) (0.14) (0.21) (672,132) $ 190,635 (187.95) (161.98) (717.07) (128.36) 7.05 (9.23) 5.42 (32.16) 8.24 – Axis Title CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended December 31 (In thousands, except share and per share amounts) 2017 2018 2019 569,242 $ 573,089 $ 565,350 $ Commercial $ 281,270 280,340 294,691 Medicare 796,375 893,644 1,007,102 Medicaid 249,978 134,054 118,716 Self-Pay 42,774 23,568 22,522 Other 937,595 NHS (National Health Service_U.K.) Revenue before provision for doubtful $ 2,877,234 $ 1,904,695 $ 2,008,381 $ accounts (40,918) Provision for doubtful accounts 2,836,316 1,904,695 2,008,381 Total net revenues Salaries, wages and benefits (excluding equity1,536,160 1,049,317 1,107,357 based compensation expense) 114,439 81,462 85,534 Supplies 1,650,599 1,130,779 1,192,891 Cost of Revenue 196,223 110,049 118,451 Prodessional fees 76,775 34,315 35,486 Rent and leases 331,827 243,671 259,536 Other operating expenses Other income 143,010 80,342 87,923 Depreciation and amortization 747,835 468,377 501,396 Total Operating Expenses 176,007 184,534 187,325 Interest expense, net 810 1,815 Debt extinguishment costs 22,076 Legal settlements expense 27,217 Loss on impairment 24,267 29,719 21,157 Transaction-related expenses 201,084 238,144 235,699 Total Other Expenses 2,599,518 1,837,300 1,929,986 Total expenses Income from continuing operations before 236,798 67,395 78,395 income taxes / Earnings before income taxes 37,209 9,907 25,085 Provision for income taxes 199,589 57,488 53,310 Income from continuing operations (Loss) income from discontinued operatios, net (232,974) 56,812 of taxes 199,589 (175,486) 110,122 Net (loss) Income Net earnings/(loss) attributable to 246 (264) (1,199) noncontrolling interests Net earnings attributable to Acadia $ 199,835 $ (175,750) $ 108,923 $ Heatthcare Company, Inc. Earnings per share attributable to Acadia Healthcare Company, Inc. stockholders: 2.30 (2.01) 1.24 Basic 2.30 (2.01) 1.24 Diluted Weighted-average shares outstanding: 86,948 87,288 87,612 Basic 87,060 87,415 87,816 Diluted (10.00) 40.00 30.00 (20.00) (7.65) (7.59) 2.15 2.10 87,875 88,595 88,769 90,793 20.00 (30.00) 10.00 (40.00) (50.00) Cost of Revenue Total Operating Expenses Total Other Expenses 2018 (31.49) (37.37) 18.43 2019 5.49 7.05 (1.03) 2020 4.10 (3.76) (22.86) 2021 7.47 17.17 (23.70) Cost of Revenue Total Operating Expenses Total Other Expenses 1 58.20 26.37 7.09 2 59.37 24.59 12.50 3 59.40 24.97 11.74 4 59.42 23.09 8.70 5 57.66 24.43 5.99 Acadia Healthcare Company, Inc. Horizontal Analysis Vertical Analysis CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31 (In thousands) Percentage Change (Current am.- Previous am)/Previous am. *100 Percentage of the Net increase in cash and cash equivalents 2018 2017 2017 2018 2019 2020 2021 2019 2020 2021 Net cash provided by investing activities Net cash provided by investing activities 2018 2019 2020 2021 Net cash provided by financing activities Net cash provided by financing activities 2,000.00 3,500.00 199,589 $ (175,486) $ 110,122 $ (669,199) $ 195,562 -187.92▼ -162.75▼ -707.69▼ -129.22▼ 296.61▲ -581.23▼ 110.64▲ -176.71▼ 146.15▲ -43.82▼ 9.44▲ 6.10▲ 14.64▲ -6.25▼ -21.34▼ -121.47▼ -116.16▼ 8.34▲ 5.41▲ 30.03▲ 4,776.77▲ 12.03▲ -67.78▼ 66.77▲ -77.83▼ 212.53▲ 14.65▲ 34.87▲ 46.62▲ 266.10▲ 34.63▲ 72.87▲ -22.31▼ 88.33▲ 12.04▲ 17.39▲ 1.09▲ 25.15▲ 3.34▲ 5.94▲ 14.02▲ 79.75▲ 3.04▲ 28.05▲ 8.80▲ -124.39▼ -1,529.96▼ -98.44▼ 771.64▲ -57.08▼ 214.52▲ 9.45▲ 3,086.59 3,000.00 1,500.00 143,010 9,855 23,467 31,372 80,342 10,456 22,001 (6,737) 87,923 11,987 17,307 1,089 95,256 12,636 22,504 53,108 106,717 4,071 37,530 11,772 – 232,974 (56,812) 812,390 12,641 810 11,412 1,815 22,076 12,505 27,217 3,916 7,233 4,751 1,041 24,650 24,293 491 124.07▲ -100.00▼ -100.00▼ -82.54▼ -73.42▼ 411.32▲ -52.83▼ 16.96▲ (28,570) 20,808 (3,176) (19,702) 14,447 2,725 (18,714) (501) (2,372) 15,340 9,675 1,519 2,448 1,968 (10,770) -31.04▼ -5.01▼ -181.97▼ -30.57▼ -103.47▼ -2,031.14▼ -185.80▼ -187.05▼ -164.04▼ -84.04▼ -79.66▼ -809.02▼ (10,113) 7,701 (20,135) 41,910 6,164 -176.15▼ -361.46▼ -308.15▼ (8,988) 11,794 – 15,883 4,941 – 5,540 16,862 – (10,001) 18,082 86,599 9,755 (14,940) (38,128) -276.71▼ -58.11▼ -65.12▼ 241.27▲ -280.52▼ 7.24▲ 401,270 225,941 183,429 502,844 374,224 -43.69▼ -18.82▼ 174.14▲ (1,693) 188,139 149,475 155,963 253 -11,212.76▼ -20.55▼ 9.58▲ 1.91▲ 18.42▲ 41.42▲ 27.34▲ 3.93▲ 1.25▲ 0.27▲ 18.15▲ 0.37▲ -42.46▼ 30.92▲ -4.72▼ -65.26▼ 47.85▲ 9.03▲ -18.80▼ -0.50▼ -2.38▼ 4.05▲ 2.55▲ 0.40▲ 1.83▲ 1.47▲ -8.05▼ -85.29▼ -15.03▼ 25.51▲ -20.23▼ 11.07▲ 4.61▲ -197.54▼ -182.62▼ -144.03▼ -13.36▼ 17.53▲ 52.61▲ 16.37▲ 5.57▲ 16.94▲ -2.64▼ 4.77▲ 22.87▲ 7.29▲ -11.16▼ -28.49▼ -25.58▼ 596.33▲ 748.35▲ 184.29▲ 132.78▲ 279.66▲ 4.34▲ -99.84▼ -2.52▼ 623.14▲ 150.17▲ 41.18▲ 0.19▲ (19.60) 97.90 (43.16) 593.81 1,371.49 334.46 173.97 -11.11▼ -58.56▼ -100.00▼ -3.75▼ 9.60▲ 13.02▲ -100.00▼ -27.03▼ -407.46▼ -61.02▼ -45.11▼ -838.59▼ -226.11▼ -60.89▼ -7.65▼ -57.20▼ -2.20▼ 7.81▲ 105.50▲ 11.82▲ 0.02▲ -68.68▼ 240.80▲ 1.20▲ 6.01▲ 73.12▲ 399,577 414,080 332,904 658,807 374,477 3.63 Cash paid for acquisions, net of cash acquired Cash paid for capital expenditures Cash paid for real estate acquisitions Proceeds from U.K. Sale Settlement of foreign currency derivatives Proceeds from sale of property and equipment Cash paid for purchase of finance lease Other (18,191) (274,177) (41,057) 5,252 (8,353) (253,187) (18,383) (4,198) (44,900) (225,061) (7,618) 105,008 11,765 12,975 (216,615) (8,349) 92 (13,365) (139,015) (244,811) 1,511,020 (84,795) 3,493 (31,401) 3,142 -100.00▼ -7.66▼ -55.23▼ Net cash used by continuing investing activities (336,526) (275,768) (147,831) (238,237) 1,017,633 -18.05▼ – (85,196) (53,310) (43,602) 279.85 (336,526) (360,964) (201,141) (281,839) 1,017,633 Borrowings on long-term debt Borrowings on revolving credit facility Principal payments on revolving credit facility Principal payments on long-term debt Repayment of long-term debt Payment of debt issuance costs Common stock withheld for minimum statutory taxes, net Distributions to noncontrolling interests Other (57,305) – (39,738) (21,920) – 76,573 (76,573) (52,984) – 925,000 100,000 (100,000) (41,291) (909,785) (18,295) 425,000 500,000 (330,000) (7,969) (2,227,935) (7,964) (3,455) (3,407) (1,648) 184 686 828 (154) (4,369) (916) (3,146) Net cash used by continuing financing activities (60,074) (64,237) (59,155) (48,249) (1,641,061) -203.01▼ -123.51▼ -12.41▼ -13.90▼ 13.04▲ -3.53▼ 1,129.20▲ -63.37▼ 2.61▲ -23.47▼ 2.35▲ -46.39▼ 61.15▲ -527.15▼ -500.11▼ -913.38▼ -148.52▼ -62.91▼ 760.49▲ -37.43▼ -18.21▼ -100.00▼ -282.18▼ -53.56▼ -11.51▼ (44.28) 40.12 (1,195.56) (202.08) (74.42) -100.00▼ -49.74▼ -409.08▼ 7.26 -103.89▼ -182.95▼ -100.00▼ -99.22▼ 3,696.74▲ (461.07) (500.11) 760.49 FINANCING ACTIVITIES Net cash provided by discontinuing financing activities Net cash provided by financing activities Effect of exchange rate changes on cash Net (decrease) increase in cash and cash equivalents, including cash classified within current assets held for sale Less: cash classified within current assets held for sale Net increase in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of period $ Cash and cash equivalents, end of period SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest Cash (received) paid for income taxes EFFECT OF ACQUISIONS: Assets acquired, excluding cash Liabilities assumed Redeemable noncontrolling interest resulting from an acquisition 1,000.00 760.49 2,000.00 593.81 1,500.00 1,000.00 500.00 334.46 279.85 173.97 (74.42) INVESTING ACTIVITIES Net cash provided by discontinuing investing activities Net cash provided by investing activities 1,371.49 2,500.00 Persentage Depreciation and amortization Amortization of debt issuance costs Equity-based compensation expense Deferred income taxes Loss (income) from discontinued operations, net of taxes Debt extiguishment costs Legal settlement expense Loss in impairment Other Change in iperationg assets and liabilities, net of effect of acquisions: Accounts receivable, net Other current assets Other assets Accounts payable and other accrued liabilities Accrued salaries and benefits Other liabilities Government relief funds Net cash provided by continuing operating activities Net cash provided by discontinuing operating activities Net cash provided by operating activities Persentage $ Adjustments to reconcile net income (loss) to net cash provided by continuing operating activities: Cash paid for acquisiotions, net of cash acquired Net cash provided by operating activities Net cash provided by operating activities OPERATING ACTIVITIES Net income (loss) Cash Flow Vertical Analysis Cash Flow Changes Horizontal Analysis 30.59▲ 30.59▲ -22.07▼ -30.66▼ 33.33▲ -100.00▼ 16,295 -1.39▼ -51.63▼ -111.17▼ (1,588) (6,900) 20.70▲ -627.66▼ 494.81▲ -27.99▼ 6.93▲ -7.91▼ -54.05▼ 400.00▲ 230.00▲ -80.70▼ 144.89▲ -56.47▼ 244.26▲ 317.61▲ 76.93▲ 26.41▲ 373.66▲ -76.93▼ -26.41▼ -246.61▼ -53.23▼ -10.90▼ -5.96▼ -240.24▼ -1,664.96▼ -4.83▼ -5.95▼ -85.16▼ -131.62▼ -72.60▼ 8,755.98▲ -5.13▼ -11.28▼ -1.66▼ 0.05▲ 12.18▲ 73.36▲ 119.33▲ 1.02▲ 2.74▲ -0.15▼ -4.39▼ -0.24▼ -0.83▼ -1.19▼ -5.16▼ -18.44▼ 3,301.23▲ -89.28▼ -212.76▼ -59.43▼ -12.74▼ -1,226.38▼ -0.86▼ – (3,093) (2,472) (3,250) -20.08▼ 31.47▲ -100.00▼ -10.24▼ -2.48▼ (60,074) 7,250 (67,330) (2,566) (61,627) 3,546 (51,499) 4,087 (1,641,061) 4,067 12.08 (8.47) -135.39▼ -238.19▼ (16.43) 15.26▲ 3,086.59 -0.49▼ (89.28) 10.77▲ (223.01) -8.50▼ (61.91) 3.56▲ (13.60) 1.08▲ (1,226.38) 3.04▲ 10,227 (16,780) 73,682 329,556 (244,884) -264.08▼ -539.11▼ 347.27▲ -174.31▼ 15.20▲ -55.58▼ 74.03▲ 87.02▲ -183.00▼ – (20,318) (24,657) (75,051) – 21.36▲ 204.38▲ -100.00▼ -67.30▼ -24.77▼ -19.82▼ 10,227 (37,098) 49,025 254,505 (244,884) -462.75▼ -232.15▼ 419.13▲ -196.22▼ 15.20▲ -122.87▼ 49.25▲ 67.21▲ -183.00▼ 57,063 67,290 67,290 30,192 50,510 $ 99,535 124,192 $ 378,697 378,697 133,813 17.92▲ -55.13▼ 145.88▲ 280.47▲ 204.93▲ -64.66▼ 84.80▲ 100.00 222.87▲ 100.00 50.75▲ 100.00 32.79▲ 100.00 283.00▲ 100.00 159,098 10,291 175,204 6,136 173,239 31,915 137,578 (16,486) 93,669 79,304 19,649 (1,458) – 48,594 (3,694) 20,200 (53) 176,365 (37,350) – – – (20,147) – 18,191 – 44,900 – 139,015 $ – $ -24.94▼ 229.67▲ (89.28) 500.00 (202.08) (61.91) 97.90 12.08 (8.47) (43.16) 40.12 (500.00) (13.60) (223.01) (500.11) – 7.26 (19.60) (16.43) 3.63 (1,000.00) (44.28) (500.00) (461.07) (1,000.00) (1,195.56) (1,226.38) (1,500.00) 2018 2019 2020 Axis Title 2021 2017 2018 2019 Axis Title 2020 2021 Ratios Current ratio Inventory turnover ratio Liquidity Ratio Receivable turnover ratio Days Sales of inventory Days Sales in Receivables Debt to total assets Solvency Ratio Debt service coverage ratio (DSCR) Gross Profit Margin Profit margin ratio Profitability ratio Return on assets ratio (ROA) Asset turnover ratio 2018 1.08 229.79 6.19 1.59 58.93 0.62 0.99 0.41 (0.09) (0.03) 0.30 2019 1.17 261.31 6.62 1.40 55.15 0.63 0.72 0.41 0.05 0.02 0.31 2020 1.93 278.24 7.43 1.31 49.11 0.70 0.50 0.41 (0.32) (0.10) 0.31 2021 1.22 276.95 8.34 1.32 43.75 0.46 0.92 0.42 0.08 0.03 0.41 Profitability ratio Solvency Ratio Liquidity Ratio Current ratio Inventory turnover ratio Receivable turnover ratio Debt to total assets Gross Profit Margin Profit margin ratio Debt service coverage ratio (DSCR) Return on assets ratio (ROA) Asset turnover ratio 0.50 1.20 300.00 261.31 278.24 250.00 0.41 0.41 0.41 0.30 0.31 0.31 0.42 0.40 0.99 276.95 1.00 0.92 0.41 0.30 229.79 0.80 200.00 0.72 0.20 0.70 0.62 0.63 0.08 0.10 0.05 0.60 150.00 0.46 – 100.00 0.40 50.00 0.20 (0.03) (0.09) 0.50 0.03 0.02 (0.10) (0.10) (0.20) 6.19 7.43 6.62 1.17 1.22 – 2018 2019 2020 (0.32) (0.30) 8.34 1.93 1.08 2021 2018 2019 2020 2021 (0.40) 2018 2019 2020 2021 Ratios Three Liquidity Ratios: Current ratio Inventory turnover ratio Debt to total assets Two Solvency Ratios 2018 BS 450,417 416,377 IS Receivable turnover ratio Debt service coverage ratio (DSCR) Gross Profit Margin Four profitability ratios Current Assets Current Liabilities Profit margin ratio Return on assets ratio (ROA) Asset turnover ratio Cost of Revenue (Beginning Inventory + Ending Inventory)/2 Net Sales Revenue (Beginning net AR + Ending net AR)/2 Total Liabilities Total Assets Cash Flow from Operations Total Current Liabilities Net Sales Revenue-Cost of Revenue Net Sales Revenue Net income Net Sales Revenue Net income (Beginning Assets + Ending Assets)/2 Net Sales Revenue (Beginning Assets + Ending Assets)/2 2019 1.0818 times 229.79 times 1,130,779 4,921 BS IS BS BS BS 1,904,695 307,506 3,810,391 6,172,504 414,080 416,377 542,211 463,576 2020 1.1696 times 261.31 times 1,192,891 4,565 1.59 days 6.19 times 58.93 days 0.62 0.99 $ times 2,008,381 303,475 4,340,610 6,879,142 332,904 463,576 2,523,395 1,308,185 2021 1.9289 times 278.24 times 1,241,763 4,463 1.40 days 6.62 times 55.15 days 0.63 0.72 $ times 2,089,929 281,207 4,544,591 6,499,362 495,031 404,861 1.2227 276.95 1,334,506 4,819 1.31 days 7.43 times 49.11 days 0.70 658,807 1,308,185 0.50 $ times 1.32 2,314,394 277,442 2,185,201 4,768,078 8.34 43.75 0.46 times Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. The Inventory Turnover ratio measures the number for times a company’s inventory is times sold and replaced over a year. It is a measure of working capital efficiency and a company’s inventory turnover is often benchmarked against competitors or the industry average. A low turnover ratio can serve as a leading indicator of poor sales (excess days inventory) while a high ratio may imply strong sales. times Account receivable turnover measures the ability to collect cash from customers. Days sales in receivables can be defined as the average number of days it takes to days collect outstanding receiveable amounts from customers. $ The debt-to-total-assets ratio shows how much of a business is owned by creditors (people it has borrowed money from) compared with how much of the company’s assets are owned by shareholders. For example, in 2021 for every 46 cents conpany owes in debt, it has $1 in assets. A lower ratios show a company is performing well and depending less on debt. A higher ratio means a company must maintain a high revenue stream or reduce its debt in order to pay its expenses. 374,477.0 404,861 0.92 The debt-service coverage ratio (DSCR) is a measurement of a firm’s available cash flow to pay current debt obligations. A DSCR of less than 1 means negative cash flow, which means that the company will be unable to cover or pay current debt obligations without drawing on outside sources—in essence, borrowing more. times For example, a DSCR of 0.92 means that there is only sufficient net operating income to cover 92% of annual debt payments. Though there is no industry standard, a DSCR of at least 2 is considered very strong. Many lenders will set minimum DSCR requirements between 1.2 and 1.25. IS 773,916 40.63% 1,904,695 815,490 40.60% 2,008,381 848,166 2,089,929 40.58% 979,888 2,314,394 42.34% This ratio compares the gross margin of a company to its revenue. It shows how much profit a company makes after paying off its Cost of Revenue. The ratio indicates the percentage of each dollar of revenue that the company retains as gross profit. IS (175,750) -9.23% 1,904,695 108,923 2,008,381 5.42% (672,132) -32.16% 2,089,929 190,635 2,314,394 8.24% The profit margin is a ratio of a company’s profit (sales minus all expenses) divided by its revenue. The profit margin ratio compares profit to sales and tells you how well the company is handling its finances overall (175,750) -2.79% 6,298,503 108,923 6,525,823 1.67% (672,132) -10.05% 6,689,252 190,635 5,633,720 3.38% Return on assets is a ratio that provides how much profit a company can generate from its assets. In other words, return on assets (ROA) measures how efficient a company’s management is in earning a profit from their economic resources or assets on their balance sheet. 1,904,695 6,298,503 2,008,381 6,525,823 2,089,929 6,689,252 2,314,394 5,633,720 0.411 Asset turnover can be defined as the amount of sales or revenues generated per dollar of assets. The asset turnover ratio is an indicator of the efficiency with which a company is deploying its assets. IS BS IS BS 0.302 0.308 0.312

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