condensed financial statements

Management’s Summary Financial Results - March 31, 2014

Summary Statement of Financial Position

London Health Sciences Centre (LHSC) continued its strong financial performance during the past fiscal year. A current ratio of 1.74 is the result of a financial decision that is strategic in nature and focuses on LHSC’s liquidity in order to deal with expected future funding and operating expense challenges. Current and long-term obligations under various debt agreements are adequately covered and supported by sound business plans and cash flows.

Summary Statement of Operations

LHSC ended the year with a surplus of $39.3 million or an operating margin of 3.4% of total revenues. This strong financial performance is the result of significant prior year recoveries from the MOHLTC/LHIN, and favourable labour and supplies expenses compared to budget. LHSC’s focus on administrative and clinical efficiencies, optimization of revenue sources, and continued replenishment of working capital will strategically position the organization to respond to the evolving fiscal environment in the healthcare sector.

Summary Statement of Cash Flows

LHSC invested $33.2 million in clinical capital, building service equipment, information systems and buildings during the year. In addition, LHSC spent $40.5 million in Milestone 2 redevelopment costs which is funded on a cost share basis with the MOHLTC and $11.7 million in externally funded or recoverable capital projects.

Capital spending is financed through a combination of operations and deferred contributions from both levels of government, the London Health Sciences Foundation and Children’s Health Foundation.

Total cash of $216.8 million consists of restricted cash and portfolio investments of $40.2 million in order to discharge certain future obligations and $176.6 million in unrestricted cash and cash equivalents.

Basis of Presentation

The information contained in the summary financial statements is in agreement with the related information in the complete audited financial statements. The summary financial statements contain major subtotals and totals from the complete audited financial statements.

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Summary Statement of Financial Position