Wednesday, 12 December 2012
LIFECARE HOLDINGS, INC.
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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LIFECARE HOLDINGS, INC.
Identification number
US10 - 123 - 0931
Country
United States of America
ZIP code and city
75024 - PLANO
Address
5340 LEGACY DR STE 150 +1 469 241 2100 www.lifecare - hospitals.com Not available
Legal form
Not available
Account
Consolidated
Incorporation date
1993
NACE 2 Sector
8610 - Hospital activities
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Company name
Listed Status
Active
MORE Credit limit
Not assessable on the base of the available informations
plans 3 types of reports:
Turnover (th e)
31/12/2011
31/12/2010
31/12/2008
321,051
267,972
252,907
Rating s-peek
C
CC
C
57.00%
42.00%
57.00%
67%
67%
67%
-12.06
-42.57
-23.52
0.92
0.98
0.96
Current Ratio
1.29
2.32
1.60
Quick Ratio
1.29
2.32
1.60
Probability of default
Plus
Basic TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
Confidence Level
TM
Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
-
-
-
-75.21
-22.92
-102.54
Asset turnover
-
-
-
Interest paid weight
-
-
-
EBITDA/Sales
-
-
-
EBIT interest coverage ratio
-
-
-
EBITDA interest coverage ratio
-
-
-
Return on equity ROE (%)
Interest Coverage ratios
Analysis and trend of financial strength modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Solvency ratios Leverage ratio
-12.06
0.26
1.41
3.20
-3.28
0.92
4.80
1.71
1.12
0.93
Current Ratio
1.29
5.08
2.61
1.43
0.98
Quick Ratio
1.29
4.97
2.57
1.39
0.97
Total asset/Total liabilities Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
-
10.86
5.55
2.35
-2.57
-75.21
8.59
7.05
-2.83
-69.77
Asset turnover
-
0.00
0.00
0.00
0.00
Interest paid weight
-
0.01
0.15
0.37
-0.13
EBITDA/Sales
-
0.20
0.23
0.08
-0.04
EBIT interest coverage ratio
-
80.91
4.54
0.44
-2.84
EBITDA interest coverage ratio
-
76.00
8.10
2.43
-2.14
Return on equity ROE (%)
Interest Coverage ratios
Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
0
2
2
3
3
Days Sales Outstanding (DSO)
80
54
56
56
56
Days Payable Outstanding (DPO)
63
5
6
10
11
Cash Conversion Cycle (DIO + DSO - DPO)
17
50
51
47
50
-
391
1,535
487
81
C
A
BBB
B
CC
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 8610 with financial data of year 2011.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2011
31/12/2010
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.77286
0.748
0.71855
12
12
12
Total assets
396,078
356,943
332,565
Fixed assets
308,608
261,334
259,935
234,048
197,309
188,744
0
0
0
74,560
64,025
71,191
87,470
95,609
72,630
0
0
0
Debtors
70,611
50,322
48,001
Other current assets
16,858
45,288
24,629
8,941
40,818
18,152
Exchange rate USD - EUR Number of months
Intangible fixed assets Tangible fixed assets Other fixed assets Current assets Stocks
Cash & cash equivalent Shareholders funds
-35,796
-8,587
-14,765
Capital
135,591
131,230
123,565
Other shareholders funds
-171,387
-139,817
-138,330
Total liabilities
431,873
365,530
347,330
Non current liabilities
364,126
324,288
301,923
Long term debt
364,126
324,288
301,923
0
0
0
67,747
41,242
45,407
Other non-current liabilities Current liabilities
4,569
2,071
2,732
55,168
35,371
19,180
8,010
3,800
23,495
396,078
356,943
332,565
31/12/2011
31/12/2010
31/12/2008
Loans Creditors Other current liabilities Total shareh. funds & liab. NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent Net debt
4,569
2,071
2,732
364,126
324,288
301,923
8,941
40,818
18,152
359,754
285,541
286,503
31/12/2011
31/12/2010
31/12/2008
Working capital
15,443
14,950
28,821
Net Current Assets
19,723
54,367
27,223
31/12/2011
31/12/2010
31/12/2008
Days Sales Of Inventory (DIO)
0
0
0
Days Sales Outstanding (DSO)
80
69
69
Days Payable Outstanding (DPO)
63
48
28
Cash Conversion Cycle (DIO + DSO - DPO)
17
21
41
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2011
31/12/2010
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.77286
0.748
0.71855
12
12
12
Exchange rate USD - EUR Number of months Sales
-
-
-
Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
-
-
-
-
-
-
Operating revenue / turnover
321,051
267,972
252,907
Total costs
-
-
-
Costs growth (%)
-
-
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
-
-
-
EBITDA Depreciation
-
-
-
-26,694
1,665
-14,134
336
543
0
336
543
-
-
-
-
-
-
-
-26,358
2,208
-14,134
-
-
-
Extr. and other revenue
-
-
-
Extr. and other expenses
-
-
-
-
-
-
566
240
1,006
-26,923
1,968
-15,140
EBIT Financial P/L Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L
P/L before tax + Extr. and other P/L Taxation P/L for period
31/12/2011
31/12/2010
31/12/2008
Cash flow
-
-
-
Added value
-
-
-
31/12/2011 Number of employees
-
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2010
31/12/2008
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
-
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
The company is a holding company for long term acute care hospitals and skilled care nursing homes. It was incorporated in 1998 and has its headquarters located in Plano, Texas. The company provides inpatient nursing and rehabilitative services. The care is generally provided for an extended period of time to individuals requiring nursing care. It has a permanent core staff of registered or licensed practical nurses who, along with other staff, provide nursing and continuous personal care services. Some of the company’s wholly - owned subsidiaries include Colorado Acute Special Care; LifeCare Hospitals of Milwaukee Inc. ; LifeCare Hospitals of North Carolina, LLC; LifeCare Hospitals of North Texas LP; and LifeCare Hospitals of Northern Nevada, Inc., operates as a medical and surgical hospitals.
History
Not available.
Primary business line
A holding company for long term acute care hospitals and skilled care nursing homes.
Secondary business line
Not available.
Main activity
Services.
Secondary activity
Not available.
Main products and services
A holding company.
Size estimate
Not available.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States of America.
Main foreign countries or regions
Not available.
Main production sites
Not available.
Main distribution sites
Not available.
Main sales representation sites
Not available.
Main customers
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
KPMG, LLP, Dallas, Texas
Auditor
-
Board Not available.
Sharehoders (the first twenty shareholders ordered by Direct %) Rating:
LCI HOLDCO, LLC Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
2845.3 24651.7
Direct % Total % Address : Not available
-
Number of Employees Information date
1300 2012/08
Rating:
CARLYLE GROUP L.P.
177.7 3300 2012/05
B
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
LIFE CARE HOSPITAL OF DAYTON, INC Country ISO code
US
Operating Revenue (MIL $)
NACE Rev. 2, Core code Direct % Total %
MO -
Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
2012/07
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
LIFECARE HOSPITAL OF SHREVEPORT Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
20.64 160 2012/07
Rating:
BB
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
76.01 80.86 2011/12
Rating:
LIFECARE HOSPITALS OF CHESTER COUNTY, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
LIFECARE HOSPITALS OF NORTH TEXAS, L.P. Country ISO code NACE Rev. 2, Core code Direct % Total %
5.2 85 2012/07
Rating:
LIFECARE HOSPITALS OF NORTH CAROLINA LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
15.75 120 2012/06
Rating:
LIFECARE HOSPITALS OF MILWAUKEE INC Country ISO code NACE Rev. 2, Core code Direct % Total %
2012/07
LIFECARE HOSPITALS OF NORTHERN NEVADA, INC.
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
4.5 70 2012/07
Rating:
BB
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
46.19 30.5 2012/04
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
LIFECARE HOSPITALS OF PITTSBURGH, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
Rating:
LIFECARE HOSPITALS OF SARASOTA, LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
6.6 180 2012/07
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
LIFECARE HOSPITALS OF SOUTH TEXAS Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
LIFECARE HOSPITALS OF WISCONSIN Country ISO code NACE Rev. 2, Core code Direct % Total %
19.61 13.01 100 2012/01
Rating:
NEXTCARE HOSPITALS / MUSKEGON, INC Country ISO code NACE Rev. 2, Core code Direct % Total %
2012/07
Rating:
LIFECARE MANAGEMENT SERVICES, L.L.C. Country ISO code NACE Rev. 2, Core code Direct % Total %
0.1 1 2011/10
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
6.64 46 2012/09
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LIFECARE HOLDINGS, INC.
Wednesday, 12 December 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts
Info web
modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com
Phone
+39 040 3755337
Company Products Where
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741