Delaware
|
62-1117144
|
|
(State or Other Jurisdiction of
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(I.R.S. Employer
|
|
Incorporation or Organization)
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Identification No.)
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701 Cool Springs Boulevard, Franklin, TN 37067
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(Address of Principal Executive Offices) (Zip Code)
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615-614-4929
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(Registrant’s Telephone Number, Including Area Code)
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(Former name, former address and former fiscal year, if changed since last report)
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Non-accelerated filer
¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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Page
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|||||
Part I
|
|||||
|
|||||
Part II
|
|||||
Financial Statements
|
March 31,
|
December 31,
|
|||||||||||
2012
|
2011
|
|||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
1,146
|
$
|
864
|
||||||||
Accounts receivable, net
|
107,714
|
97,459
|
||||||||||
Prepaid expenses
|
9,797
|
11,417
|
||||||||||
Other current assets
|
1,007
|
1,412
|
||||||||||
Income taxes receivable
|
6,575
|
6,065
|
||||||||||
Deferred tax asset
|
10,594
|
10,314
|
||||||||||
Total current assets
|
136,833
|
127,531
|
||||||||||
Property and equipment:
|
||||||||||||
Leasehold improvements
|
40,952
|
41,622
|
||||||||||
Computer equipment and related software
|
249,153
|
239,732
|
||||||||||
Furniture and office equipment
|
25,455
|
26,324
|
||||||||||
Capital projects in process
|
22,434
|
17,811
|
||||||||||
337,994
|
325,489
|
|||||||||||
Less accumulated depreciation
|
(189,981
|
)
|
(183,301
|
)
|
||||||||
148,013
|
142,188
|
|||||||||||
Other assets
|
10,441
|
10,797
|
||||||||||
Intangible assets, net
|
92,464
|
92,997
|
||||||||||
Goodwill, net
|
335,392
|
335,392
|
||||||||||
Total assets
|
$
|
723,143
|
$
|
708,905
|
||||||||
See accompanying notes to the consolidated financial statements.
|
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
21,725
|
$
|
22,578
|
||||
Accrued salaries and benefits
|
23,209
|
35,617
|
||||||
Accrued liabilities
|
33,061
|
28,639
|
||||||
Deferred revenue
|
9,732
|
9,273
|
||||||
Contract billings in excess of earned revenue
|
16,724
|
13,154
|
||||||
Current portion of long-term debt
|
3,393
|
3,725
|
||||||
Current portion of long-term liabilities
|
5,628
|
5,771
|
||||||
Total current liabilities
|
113,472
|
118,757
|
||||||
Long-term debt
|
290,796
|
266,117
|
||||||
Long-term deferred tax liability
|
30,120
|
26,964
|
||||||
Other long-term liabilities
|
27,936
|
31,351
|
||||||
Stockholders’ equity:
|
||||||||
Preferred stock
|
||||||||
$.001 par value, 5,000,000 shares
|
||||||||
authorized, none outstanding
|
—
|
—
|
||||||
Common stock
|
||||||||
$.001 par value, 120,000,000 shares authorized,
|
||||||||
33,401,898 and 33,304,681 shares outstanding
|
33
|
33
|
||||||
Additional paid-in capital
|
244,498
|
247,137
|
||||||
Retained earnings
|
45,852
|
48,517
|
||||||
Treasury stock, at cost, 2,254,953 shares in treasury
|
(28,182
|
)
|
(28,182
|
)
|
||||
Accumulated other comprehensive loss
|
(1,382
|
)
|
(1,789
|
)
|
||||
Total stockholders’ equity
|
260,819
|
265,716
|
||||||
Total liabilities and stockholders’ equity
|
$
|
723,143
|
$
|
708,905
|
||||
See accompanying notes to the consolidated financial statements.
|
Three Months Ended
|
|||||||||
March 31,
|
|||||||||
2012
|
2011
|
||||||||
Revenues
|
$
|
165,218
|
$
|
162,969
|
|||||
Cost of services (exclusive of depreciation and amortization of $8,683 and $9,023, respectively, included below)
|
140,235
|
121,908
|
|||||||
Selling, general and administrative expenses
|
13,739
|
17,842
|
|||||||
Depreciation and amortization
|
12,173
|
12,433
|
|||||||
Operating income (loss)
|
(929
|
)
|
10,786
|
||||||
Interest expense
|
3,187
|
3,418
|
|||||||
Income (loss) before income taxes
|
(4,116
|
)
|
7,368
|
||||||
Income tax (benefit) expense
|
(1,451
|
)
|
3,233
|
||||||
Net income (loss)
|
$
|
(2,665
|
)
|
$
|
4,135
|
||||
Earnings (loss) per share:
|
|||||||||
Basic
|
$
|
(0.08
|
)
|
$
|
0.12
|
||||
Diluted
(1)
|
$
|
(0.08
|
)
|
$
|
0.12
|
||||
Comprehensive income (loss)
|
$
|
(2,258
|
)
|
$
|
4,833
|
||||
Weighted average common shares and equivalents:
|
|||||||||
Basic
|
33,346
|
33,975
|
|||||||
Diluted
(1)
|
33,346
|
34,690
|
|||||||
(1)
The assumed exercise of stock-based compensation awards for the three months ended March 31, 2012 was not considered because the impact would be anti-dilutive.
|
See accompanying notes to the consolidated financial statements.
|
Accumulated
|
||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||
Preferred
|
Common
|
Paid-in
|
Retained
|
Treasury
|
Comprehensive
|
|||||||||||||||||
Stock
|
Stock
|
Capital
|
Earnings
|
Stock
|
Loss
|
Total
|
||||||||||||||||
Balance, December 31, 2011
|
$—
|
$33
|
$247,137
|
$48,517
|
$(28,182
|
)
|
$(1,789
|
)
|
$265,716
|
|||||||||||||
Comprehensive loss
|
—
|
—
|
—
|
(2,665
|
)
|
—
|
407
|
(2,258
|
)
|
|||||||||||||
Exercise of stock options
|
—
|
—
|
9
|
—
|
—
|
—
|
9
|
|||||||||||||||
Tax effect of stock options and restricted
stock units
|
—
|
—
|
(4,042
|
)
|
—
|
—
|
—
|
(4,042
|
)
|
|||||||||||||
Share-based employee compensation expense
|
—
|
—
|
1,394
|
—
|
—
|
—
|
1,394
|
|||||||||||||||
Balance, March 31, 2012
|
$—
|
$33
|
$244,498
|
$45,852
|
$(28,182
|
)
|
$(1,382
|
)
|
$260,819
|
See accompanying notes to the consolidated financial statements.
|
Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2012
|
2011
|
|||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income (loss)
|
$
|
(2,665
|
)
|
$
|
4,135
|
|||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by
|
||||||||||||
operating activities, net of business acquisitions:
|
||||||||||||
Depreciation and amortization
|
12,173
|
12,433
|
||||||||||
Amortization of deferred loan costs
|
435
|
477
|
||||||||||
Share-based employee compensation expense
|
1,394
|
2,252
|
||||||||||
Deferred income taxes
|
(1,562
|
)
|
(2,700
|
)
|
||||||||
Excess tax benefits from share-based payment arrangements
|
(3
|
)
|
(172
|
)
|
||||||||
(Increase) decrease in accounts receivable, net
|
(10,226
|
)
|
1,909
|
|||||||||
Decrease in other current assets
|
2,024
|
7,022
|
||||||||||
Decrease in accounts payable
|
(5,002
|
)
|
(2,782
|
)
|
||||||||
Decrease in accrued salaries and benefits
|
(14,063
|
)
|
(10,248
|
)
|
||||||||
Increase in other current liabilities
|
8,241
|
7,805
|
||||||||||
Other
|
(2,320
|
)
|
707
|
|||||||||
Net cash flows (used in) provided by operating activities
|
(11,574
|
)
|
20,838
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Acquisition of property and equipment
|
(15,085
|
)
|
(9,787
|
)
|
||||||||
Other
|
(1,825
|
)
|
(1,327
|
)
|
||||||||
Net cash flows used in investing activities
|
(16,910
|
)
|
(11,114
|
)
|
||||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from issuance of long-term debt
|
115,575
|
119,918
|
||||||||||
Payments of long-term debt
|
(91,228
|
)
|
(123,445
|
)
|
||||||||
Deferred loan costs
|
—
|
(40
|
)
|
|||||||||
Excess tax benefits from share-based payment arrangements
|
3
|
172
|
||||||||||
Exercise of stock options
|
9
|
1,862
|
||||||||||
Repurchases of common stock
|
—
|
(3,868
|
)
|
|||||||||
Change in outstanding checks and other
|
4,287
|
(1,320
|
)
|
|||||||||
Net cash flows provided by (used in) financing activities
|
28,646
|
(6,721
|
)
|
|||||||||
Effect of exchange rate changes on cash
|
120
|
269
|
||||||||||
Net increase in cash and cash equivalents
|
282
|
3,272
|
||||||||||
Cash and cash equivalents, beginning of period
|
864
|
1,064
|
||||||||||
Cash and cash equivalents, end of period
|
$
|
1,146
|
$
|
4,336
|
(1)
|
Basis of Presentation
|
(2)
|
Recently Adopted Accounting Standard
|
(3)
|
Share-Based Compensation
|
Weighted-
|
||||||||||||
Average
|
||||||||||||
Weighted-
|
Remaining
|
Aggregate
|
||||||||||
Shares
|
Average
|
Contractual
|
Intrinsic
|
|||||||||
Options
|
(000s)
|
Exercise Price
|
Term (years)
|
Value ($000s)
|
||||||||
Outstanding at January 1, 2012
|
5,659
|
$
|
17.58
|
|||||||||
Granted
|
677
|
7.95
|
||||||||||
Exercised
|
(1
|
)
|
7.24
|
|||||||||
Forfeited
|
(214
|
)
|
11.70
|
|||||||||
Expired
|
(542
|
)
|
33.53
|
|||||||||
Outstanding at March 31, 2012
|
5,579
|
15.10
|
5.79
|
$61
|
||||||||
Exercisable at March 31, 2012
|
3,181
|
18.39
|
3.46
|
$56
|
Weighted-
|
||||||||
Average
|
||||||||
Shares
|
Grant Date
|
|||||||
Nonvested Shares
|
(000s)
|
Fair Value
|
||||||
Nonvested at January 1, 2012
|
910
|
$
|
12.22
|
|||||
Granted
|
316
|
7.44
|
||||||
Vested
|
(137
|
)
|
14.63
|
|||||
Forfeited
|
(80
|
)
|
11.23
|
|||||
Nonvested at March 31, 2012
|
1,009
|
$
|
10.46
|
(4)
|
Income Taxes
|
(5)
|
Derivative Investments and Hedging Activities
|
March 31, 2012
|
December 31, 2011
|
|||||||||||
(In $000s)
|
Foreign currency exchange contracts
|
Interest rate swap agreements
|
Foreign currency exchange contracts
|
Interest rate swap agreements
|
||||||||
Assets:
|
||||||||||||
Derivatives not designated as hedging instruments:
|
||||||||||||
Other current assets
|
$148
|
$—
|
$315
|
$—
|
||||||||
Total assets
|
$148
|
$—
|
$315
|
$—
|
||||||||
Liabilities:
|
||||||||||||
Derivatives not designated as hedging instruments:
|
||||||||||||
Accrued liabilities
|
$232
|
$—
|
$321
|
$—
|
||||||||
|
||||||||||||
Derivatives designated as hedging instruments:
|
||||||||||||
Accrued liabilities
|
—
|
227
|
—
|
251
|
||||||||
Other long-term liabilities
|
—
|
3,450
|
—
|
3,984
|
||||||||
Total liabilities
|
$232
|
$3,677
|
$321
|
$4,235
|
||||||||
(In $000s)
|
Amount of Gain Recognized in Accumulated OCI on Derivatives (Effective Portion)
For the Three Months Ended
|
|||||||
Derivatives in Cash Flow Hedging Relationships
|
March 31, 2012
|
March 31, 2011
|
||||||
Interest rate swap agreements, gross of tax effect
|
$558
|
$1,294
|
Level 1: Quoted prices in active markets for identical assets or liabilities;
|
||
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-based valuation techniques in which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
|
||
Level 3: Unobservable inputs that are supported by little or no market activity and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
|
(In $000s)
March 31, 2012
|
Level 2
|
Gross Fair Value
|
Netting
(1)
|
Net Fair Value
|
||||||||||||
Assets:
|
||||||||||||||||
Foreign currency exchange contracts
|
$
|
148
|
$
|
148
|
$
|
(139
|
)
|
$
|
9
|
|||||||
Liabilities:
|
||||||||||||||||
Foreign currency exchange contracts
|
$
|
232
|
$
|
232
|
$
|
(139
|
)
|
$
|
93
|
|||||||
Interest rate swap agreements
|
3,677
|
3,677
|
—
|
3,677
|
(In $000s)
December 31, 2011
|
Level 2
|
Gross Fair Value
|
Netting
(1)
|
Net Fair Value
|
||||||||||||
Assets:
|
||||||||||||||||
Foreign currency exchange contracts
|
$
|
315
|
$
|
315
|
$
|
(212
|
)
|
$
|
103
|
|||||||
Liabilities:
|
||||||||||||||||
Foreign currency exchange contracts
|
$
|
321
|
$
|
321
|
$
|
(212
|
)
|
$
|
109
|
|||||||
Interest rate swap agreements
|
4,235
|
4,235
|
—
|
4,235
|
|
·
|
Cash and cash equivalents – The carrying amount of $1.1 million approximates fair value because of the short maturity of those instruments (less than three months).
|
|
·
|
Long-term debt – The estimated fair value of outstanding borrowings under the Fourth Amended and Restated Credit Agreement (the “Fourth Amended Credit Agreement”), which includes the 2013 Revolving Credit Facility and a term loan facility (see Note 7), is determined based on the fair value hierarchy as discussed above. The 2013 Revolving Credit Facility is not actively traded and therefore is classified as a Level 2 valuation based on the market for other revolvers with similar maturities. The term loan facility is actively traded and therefore is classified as a Level 1 valuation based on the market for identical instruments. In both instances, the estimated fair value is based on the average of the prices set by the issuing bank given current market conditions and is not necessarily indicative of the amount we could realize in a current market exchange. The estimated fair value and carrying amount of outstanding borrowings under the Fourth Amended Credit Agreement at March 31, 2012 are $288.7 million and $290.9 million, respectively.
|
(7)
|
Long-Term Debt
|
(8)
|
Restructuring and Related Charges
|
(9)
|
Commitments and Contingencies
|
(10)
|
Share Repurchases
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||||||||||
January 1 through 31, 2012
|
—
|
—
|
2,254,953
|
$31,813,383
|
||||||||||||||
February 1 through 29, 2012
|
—
|
—
|
2,254,953
|
$31,813,383
|
||||||||||||||
March 1 through 31, 2012
|
—
|
—
|
2,254,953
|
$31,813,383
|
||||||||||||||
Total
|
—
|
(11)
|
Comprehensive Income
|
(12)
|
Earnings (Loss) Per Share
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
·
|
fostering wellness and disease prevention through total population screening, well-being assessments and supportive interventions; and
|
|
·
|
providing access to health improvement programs, such as fitness solutions, weight management, chiropractic, and complementary and alternative medicine.
|
|
·
|
promoting the change and improvement of the lifestyle behaviors that lead to poor health or chronic conditions; and
|
|
·
|
providing educational materials and personal interactions with highly trained nurses and other healthcare professionals to create and sustain healthier behaviors for those individuals at-risk or in the early stages of chronic conditions.
|
|
·
|
incorporating the latest, evidence-based clinical guidelines into interventions to optimize patient health outcomes;
|
|
·
|
developing care support plans and motivating members to set attainable goals for themselves;
|
|
·
|
providing local market resources to address acute episodic interventions;
|
|
·
|
coordinating members’ care with their healthcare providers;
|
|
·
|
providing software licensing and management consulting in support of well-being improvement services; and
|
|
·
|
providing high-risk care management for members at risk for hospitalization due to complex conditions.
|
|
·
|
our ability to sign and implement new contracts for our solutions;
|
|
·
|
our ability to accurately forecast the costs required to successfully implement new contracts;
|
|
·
|
our ability to renew and/or maintain contracts with our customers under existing terms or restructure these contracts on terms that would not have a material negative impact on our results of operations;
|
|
·
|
our ability to effectively compete against other entities, whose financial, research, staff, and marketing resources may exceed our resources;
|
|
·
|
our ability to accurately forecast the Company’s revenues, margins, earnings and net income, as well as any potential charges that we may incur as a result of changes in our business;
|
|
·
|
our ability to accurately forecast variables that affect performance and the timing of revenue recognition under the terms of our customer contracts ahead of data collection and reconciliation;
|
|
·
|
the impact of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 ( “PPACA”) on our operations and/or the demand for our services;
|
|
·
|
the outcome of lawsuits challenging the constitutionality of PPACA;
|
|
·
|
the impact of any new or proposed legislation, regulations and interpretations relating to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, including the potential expansion to Phase II for Medicare Health Support programs and any legislative or regulatory changes with respect to Medicare Advantage;
|
|
·
|
our ability to anticipate the rate of market acceptance of our solutions in potential international markets;
|
|
·
|
our ability to accurately forecast the costs necessary to establish a presence in international markets;
|
|
·
|
the risks associated with foreign currency exchange rate fluctuations and our ability to hedge against such fluctuations;
|
|
·
|
the risks associated with deriving a significant concentration of our revenues from a limited number of customers;
|
|
·
|
our ability to achieve and reach mutual agreement with customers with respect to contractually required performance metrics, cost savings and clinical outcomes improvements, or to achieve such metrics, savings and improvements within the time frames contemplated by us;
|
|
·
|
our ability to achieve estimated annualized revenue in backlog in the manner and within the timeframe we expect, which is based on certain estimates regarding the implementation of our services;
|
|
·
|
our ability and/or the ability of our customers to enroll participants and to estimate their level of enrollment and participation in our programs in a manner and within the timeframe anticipated by us;
|
|
·
|
the ability of our customers to provide timely and accurate data that is essential to the operation and measurement of our performance under the terms of our contracts;
|
|
·
|
our ability to favorably resolve contract billing and interpretation issues with our customers;
|
|
·
|
our ability to service our debt, make principal and interest payments as those payments become due, and remain in compliance with our debt covenants;
|
|
·
|
the risks associated with changes in macroeconomic conditions, which may reduce the demand and/or the timing of purchases for our services from customers or potential customers, reduce the number of covered lives of our existing customers, or restrict our ability to obtain additional financing;
|
|
·
|
counterparty risk associated with our interest rate swap agreements and foreign currency exchange contracts;
|
|
·
|
our ability to integrate acquired businesses, services (including outsourced services), or technologies into our business and to accurately forecast the related costs;
|
|
·
|
our ability to anticipate and respond to strategic changes, opportunities, and trends in our industry and/or business and to accurately forecast the related impact on our earnings;
|
|
·
|
the impact of any impairment of our goodwill or other intangible assets;
|
|
·
|
our ability to develop new products and deliver outcomes on those products;
|
|
·
|
our ability to implement our integrated data and technology solutions platform within the required timeframe and expected cost estimates and to develop and enhance this platform and/or other technologies to meet evolving customer and market needs;
|
|
·
|
our ability to obtain adequate financing to provide the capital that may be necessary to support our operations and to support or guarantee our performance under new contracts;
|
|
·
|
unusual and unforeseen patterns of healthcare utilization by individuals with diseases or conditions for which we provide services;
|
|
·
|
the ability of our customers to maintain the number of covered lives enrolled in the plans during the terms of our agreements;
|
|
·
|
the impact of legal proceedings involving us and/or our subsidiaries;
|
|
·
|
the impact of future state, federal, and international legislation and regulations applicable to our business, including PPACA, on our ability to deliver our services and on the financial health of our customers and their willingness to purchase our services;
|
|
·
|
current geopolitical turmoil, the continuing threat of domestic or international terrorism, and the potential emergence of a health pandemic; and
|
|
·
|
other risks detailed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and other filings with the Securities and Exchange Commission.
|
|
·
|
adopt or maintain healthy behaviors;
|
|
·
|
reduce health-related risk factors; and
|
|
·
|
optimize care for identified health conditions.
|
Three Months Ended
|
||||||||||
March 31,
|
||||||||||
2012
|
2011
|
|||||||||
Revenues
|
100.0
|
%
|
100.0
|
%
|
||||||
Cost of services (exclusive of depreciation
|
||||||||||
and amortization included below)
|
84.9
|
%
|
74.8
|
%
|
||||||
Selling, general and administrative expenses
|
8.3
|
%
|
10.9
|
%
|
||||||
Depreciation and amortization
|
7.4
|
%
|
7.6
|
%
|
||||||
Operating income (loss)
(1)
|
(0.6
|
)%
|
6.6
|
%
|
||||||
Interest expense
|
1.9
|
%
|
2.1
|
%
|
||||||
Income (loss) before income taxes
|
(2.5
|
)%
|
4.5
|
%
|
||||||
Income tax (benefit) expense
|
(0.9
|
)%
|
2.0
|
%
|
||||||
Net income (loss)
|
(1.6
|
)%
|
2.5
|
%
|
·
|
an increase in participation in our fitness solutions, as well as in the number of members eligible to participate in such programs; and
|
·
|
the commencement of new contracts.
|
·
|
the wind-down of our current contract with CIGNA and certain other contract or program terminations with three smaller health plan customers to whom we provided traditional disease management services, all of which carried a lower than average cost of services as a percentage of revenues. In addition, due to the timing of the notification from CIGNA in late 2011, some of the related costs could not be reduced until the first quarter of 2012; and
|
·
|
an increase in the level of performance-based fees such that a significant portion of these fees will not be recognized as revenue until future periods, whereas the related costs are incurred and recognized in the current period.
|
·
|
a decrease in net income;
|
·
|
an increase in certain long-term incentive and other benefit payments;
|
·
|
an increase in severance payments in the first quarter of 2012 made as a result of a restructuring of the Company that was largely completed during the fourth quarter of 2011; and
|
·
|
a decrease in cash collections on accounts receivable due to routine timing of collections.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Controls and Procedures
|
Legal Proceedings
|
Risk Factors
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Not Applicable.
|
Mine Safety Disclosures
|
Not Applicable.
|
Other Information
|
Not Applicable.
|
Exhibits
|
|
(a)
|
Exhibits
|
10.1
|
Employment Agreement dated January 1, 2012 between the Company and Peter Choueiri
|
|
10.2
|
Healthways, Inc. Non-Qualified Stock Option Agreement
|
|
10.3
|
Healthways, Inc. Restricted Stock Unit Award Agreement
|
|
10.4
|
Healthways, Inc. Performance Cash Award Agreement
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
|
|
31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
|
|
32
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
Healthways, Inc.
|
||||
(Registrant)
|
||||
Date
|
May 9, 2012
|
By
|
/s/ Alfred Lumsdaine
|
|
Alfred Lumsdaine
|
||||
Chief Financial Officer
|
||||
(Principal Financial Officer)
|
IV. PFLICHTEN
|
IV. DUTIES
|
Der leitende Angestellte wird während der Laufzeit seine vollständige Zeit und Aufmerksamkeit während der üblichen deutschen Geschäftszeiten dem Geschäft und den Angelegenheiten des Unternehmens widmen. Soweit es keine Verletzung dieses Vertrages durch den leitenden Angestellten darstellt, kann der leitende Angestellte mit Zustimmung des Unternehmens angemessene Zeitperioden karitativen und gesellschaftlichen Aktivitäten und brancheninternen sowie beruflichen Aktivitäten und/oder der Erledigung persönlicher Investitionen widmen, solange diese Aktivitäten nicht die Erbringung der Pflichten des leitenden Angestellten beeinträchtigen. Der Arbeitsplatz ist München, Deutschland. Die Pflichten des leitenden Angestellten erfordern nationale und internationale Reisen.
|
During the Term, the Executive shall devote his full time and attention during normal German business hours to the business and affairs of the Company; provided, however, that it shall not be a violation of this Agreement for the Executive with the approval of the Company to devote reasonable periods of time to charitable and community activities and industry or professional activities, and/or to manage personal investments, so long as such activities do not interfere with the performance of the Executive’s responsibilities under this Agreement. The place of work is Munich, Germany; the Executive’s duties require national and international travel.
|
ii) wenn als Ergebnis einer oder in Verbindung mit einem Cash-Kauf- oder Tauschangebot, einer Verschmelzung oder anderen Unternehmenszusammenschlüssen, einem Verkauf von Vermögenswerten oder einer angefochtenen Wahl oder einer Kombination der genannten Vorgänge nach einem solchen Vorgang weniger als die Mehrheit der Stimmrechte der zu diesem Zeitpunkt ausgegebenen Anteile am Unternehmen oder einer Nachfolgegesellschaft oder -person, die allgemein dazu berechtigen die Boardmitglieder des Unternehmens oder einer solchen Nachfolgegesellschaft oder -person zu wählen, insgesamt von Inhabern der Anteile des Unternehmens gehalten werden, die allgemein berechtigt waren vor einer solchen Transaktion Boardmitglieder des Unternehmens zu wählen; oder
|
ii) as the result of, or in connection with, any cash tender or exchange offer, merger or other business combination, sales of assets or contested election, or any combination of the foregoing transactions, less than a majority of the combined voting power of the then outstanding securities of the Company or any successor corporation or entity entitled to vote generally in the election of the directors of the Company or such other corporation or entity after such transaction are held in the aggregate by the holders of the Company’s securities entitled to vote generally in the election of directors of the Company immediately prior to such transaction; or
|
iii) während eines Zeitraumes von zwei (2) aufeinanderfolgenden Jahren, Personen, welche zu Beginn eines solchen Zeitraumes das Board bilden, aus irgendeinem Grund aufhören wenigstens die Mehrheit hiervon zu bilden, außer wenn die Wahl oder Nominierung zur Wahl durch die Aktieninhaber des Unternehmens eines jeden dieser während dieses Zeitraumes erstmals gewählt Boardmitglieder, durch ein Votum von wenigstens Zweidritteln der Boardmitglieder des Unternehmens genehmigt wurde, die zu diesem Zeitpunkt noch im Amt und zu Beginn eines solchen Zeitraumes bereits Boardmitglieder des Unternehmens waren.
|
iii) during any period of two (2) consecutive years, individuals who at the beginning of any such period constitute the Board cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s stockholders, of each director of the Company first elected during such period was approved by a vote of at least two-thirds of the directors of the Company then still in office who were directors of the Company at the beginning of any such period.
|
3.
Entrichtung der Steuern
. Falls in Zusammenhang mit einem Change of Control, irgendeine Zahlung des Unternehmens, welche nach ihrer Art eine Vergütung ist, an oder zugunsten des leitenden Angestellten eine „excess parachute payment“ (und/oder ein deutsches Pendant) darstellt, hat das Unternehmen dem leitenden Angestellten auf Aufforderung einen Betrag gleichwertig zu dem Betrag zu erstatten, der dem Wert der Steuer auf den gesamten Betrag des excess parachute payments entspricht („Aufzahlungsbetrag“). Die Bezahlung des „Aufzahlungsbetrages“ gegenüber dem leitenden Angestellten erfolgt, sobald vernünftigerweise möglich, nach dem Zahlungsverlangen des leitenden Angestellten, aber auf keinen Fall später als am 31. Dezember des Jahres, welches dem Jahr in welchem die Steuer gegenüber der Steuerbehörde entrichtet wurde, nachfolgt.
|
3.
Excise Tax Payment
. If, in connection with a Change in Control, any payment in the nature of compensation to, or for the benefit of, the Executive from the Company (or any successor in interest) constitutes an “excess parachute payment” (and/or a German equivalent) the Company shall pay to the Executive, on demand, an amount equal to the amount of excise tax on the entire amount of Excess Parachute Payments (“Gross-up Amount”). The payment of the “Gross-up Amount” due to the Executive shall be paid as soon as reasonably possible following demand of payment by the Executive, but in no event later than on December 31 of the year following the year of the tax is paid to the tax authorities.
|
Dieser Vertrag ist ein höchstpersönlicher Vertrag und die sich hieraus ergebenden Rechte und Interessen des leitenden Angestellten dürfen von ihm nicht verkauft, übertragen, abgetreten, verpfändet oder belastet werden, außer wenn dies anderweitig ausdrücklich aufgrund der Bestimmungen dieses Vertrages erlaubt ist. Dieser Vertrag tritt in Kraft zugunsten des leitenden Angestellten und ist von ihm und seinen persönlichen und gesetzlichen Vertretern, Testamentsvollstreckern, Verwaltern, Rechtsnachfolgern, Erben, Ausschüttungsempfängern und Vermächtnisnehmern vollziehbar. Falls der leitende Angestellte sterben sollte, solange noch ein Betrag hierunter an ihn auszubezahlen wäre, würde der leitende Angestellte noch weiterleben, so sind alle diese Beträge, soweit hierin nichts anderes aufgenommen wurde, in Übereinstimmung mit den Bedingungen dieses Vertrages an seine Erben, Vermächtnisnehmer oder andere Beauftragte, oder, falls es solche Beauftragte nicht gibt in seinen Nachlass auszuzahlen.
|
This Agreement is a personal contract and the rights and interests of the Executive hereunder may not be sold, transferred, assigned, pledged, encumbered, or hypothecated by him, except as otherwise expressly permitted by the provisions of this Agreement. This Agreement shall inure to the benefit of and be enforceable by the Executive and his personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amount would still be payable to him hereunder had the Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to his devisee, legatee or other designee or, if there is no such designee, to his estate.
|
IX. GEHEIMHALTUNG, WETTBEWERBSVERBOT, ABWERBUNGSVERBOT
|
IX. CONFIDENTIALITY, NON-COMPETITION, NON-SOLICITATION
|
A.Der leitende Angestellte bestätigt, dass:
|
A.The Executive acknowledges that:
|
1. der vom Unternehmen betriebene Geschäftsbetrieb, nämlich Dienstleistungen der Gesundheitsunterstützung (care and health support) (der „Geschäftsbetrieb“), in hohem Maße dem Wettbewerb ausgesetzt ist und dass das Dienstverhältnis des leitenden Angestellten bei dem Unternehmen erfordert, dass der leitende Angestellte Zugang zu und Kenntnis von vertraulichen Informationen des Unternehmens in Bezug auf seine Businesspläne, Finanzdaten, Marketing-Programmen, Kundeninformationen, Verträge und andere Betriebsgeheimnisse hat, die in jedem Fall umfassender sind, als solche Informationen ohne Verletzung dieses Vertrages dem leitenden Angestellten allgemein bekannt oder öffentlich zugänglich wären;
|
1.the business made by the Company of providing care and health support services in which the Company is engaged (the “Business”) is intensely competitive and that the Executive’s employment by the Company will require that the Executive have access to and knowledge of confidential information of the Company relating to its business plans, financial data, marketing programs, client information, contracts and other trade secrets, in each case other than as and to the extent such information is generally known or publicly available through no violation of this Agreement by the Executive;
|
4.Aufgrund dieser Bestimmung erhält der leitende Angestellte neben seinem Abfindungszahlungen gem. VI D, E und F für die zwölf (12) dem Wirksamkeitsdatum nachfolgenden Monate 50% seiner durchschnittlichen, zuletzt unter Abschnitt V. dieses Vertrages erhaltenen, vertraglichen Vergütung als Ausgleich, zu zahlen während dieser Zeit in gleichen monatlichen Abschlagszahlungen. Zusätzlich finden die Paragraphen 74 ff. HGB Anwendung mit Ausnahme des § 74c, dessen Anwendung explizit ausgeschlossen ist. Falls nicht bereits durch die Abfindung abgedeckt, wird die Krankenversicherung ebenfalls während des Wettbewerbsverbots verlängert.
|
4.For the purpose of this clause the Executive shall receive in addition to his severance payments according to VI D, E, and F for the twelve (12) months following the Effective Date, 50% of his average contractual remuneration lastly received under Section V. of this agreement as compensation payable in equal monthly installments during this time. In addition, the sects. 74 et seqq. of the German Commercial Code (
Handelsgesetzbuch
) shall apply with the exception of § 74c which is explicitly excluded. If not covered through severance, health cover will also be extended during the non-compete period.
|
C.Falls einzelne oder mehrere der im Vertrag enthaltenen Bestimmungen für übermäßig weit in Hinblick auf die Dauer, Tätigkeit oder Gegenstand gehalten werden, sind diese Bestimmungen soweit zu beschränken und zu reduzieren, als dass diese zum weitesten gesetzlich zulässigen Umfang anwendbar sind.
|
C.If any one or more of the provisions contained in this Agreement shall be held to be excessively broad as to duration, activity or subject, such provisions shall be construed by limiting and reducing them so as to be enforceable to the fullest extent permitted by law.
|
X. VERHALTENSCODEX / FOREIGN CORRUPT PRACTICIES ACT
|
X. CODE OF CONDUCT / FOREIGN CORRUPT PRACTICES ACT
|
Von dem leitenden Angestellten wird verlangt den Verhaltenscodex der gesamten Healthways-Gruppe und das „Foreign Anti Corruption Program“ zu befolgen.
|
The Executive is required to abide by Healthways’ group-wide Code of Conduct and the Foreign Anti-Corruption Program.
|
XVIII. AUSFERTIGUNGEN
|
XVIII. COUNTERPARTS
|
Dieser Vertrag kann in Ausfertigungen unterzeichnet werden; jede dieser ist als Original anzusehen, wobei alle zusammen ein und dasselbe Dokument darstellen.
|
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
|
Zu Urkund dessen
, haben die Parteien hierzu diesen Anstellungsvertrag in Kraft tretend zum vorstehend festgelegten Datum geschlossen.
|
IN WITNESS WHEREOF,
the parties hereto have executed this Employment Agreement effective as of date set forth above
|
ANLAGE A
Ausnahmen
Ungeachtet anderslautender Bestimmungen in dem Vertrag, werden diese Bedingungen ebenfalls Teil des Vertrages und heben jede widersprüchliche Bedingung darin auf:
|
EXHIBIT A
Exceptions
Notwithstanding anything in the Agreement to the contrary, the following terms are also part of the Agreement and supersede any contradictory term contained therein:
|
Percentage Vested
|
Date of Vesting
|
|
25%
50%
75%
100%
|
One Year from Grant Date
Two Years from Grant Date
Three Years from Grant Date
Four Years from Grant Date
|
Vesting Date
|
Award Percentage of Restricted Stock Units
|
|
One Year from Grant Date
Two Years from Grant Date
Three Years from Grant Date
Four Years from Grant Date
|
25%
25%
25%
25%
|
To the Grantee:
|
PARTICIPANT NAME
|
(Grantee name and address)
|
Address on File at Healthways
|
To the Company:
|
Healthways, Inc.
701 Cool Springs Boulevard
Franklin, Tennessee 37067
|
|
To the Grantee
(Grantee name and address)
|
PARTICIPANT NAME
Address on File
At Healthways
|
/s/ Ben R. Leedle, Jr.
|
||
Ben R. Leedle, Jr.
|
||
Chief Executive Officer
|
/s/ Alfred Lumsdaine
|
||
Alfred Lumsdaine
|
||
Chief Financial Officer
|