Exhibit 99.1

American Renal Associates Holdings, Inc.

Consolidated Statements of Income

(preliminary and unaudited and in thousands)


	Three Months Ended December 31,						Year Ended December 31,
	2012			2011			2012			2011

Patient service operating revenues	$	116,686		$	93,106		$	424,010		$	360,081
Provision for uncollectible accounts		(796	)		(686	)		(2,543	)		(4,178	)

Net patient service operating revenues		115,890			92,420			421,467			355,903

Operating expenses:
Patient care costs		65,856			54,539			244,973			217,036
General and administrative		12,281			9,908			45,904			39,326
Merger related costs		—			154			—			604
Depreciation and amortization		5,840			4,643			20,991			17,865


Total operating expenses		83,977			69,244			311,868			274,831


Operating Income		31,913			23,176			109,599			81,072

Interest expense, net		(10,459	)		(9,860	)		(40,884	)		(36,236	)


Income before income taxes		21,454			13,316			68,715			44,836

Income tax expense		2,628			2,588			8,266			4,400


Net income		18,826			10,728			60,449			40,436

Less: Net income attributable to noncontrolling interests		(14,884	)		(10,344	)		(50,808	)		(37,530	)


Net income attributable to ARAH	$	3,942		$	384		$	9,641		$	2,906

(1)

American Renal Associates Holdings, Inc.

Condensed Consolidated Balance Sheets

(preliminary and unaudited and in thousands)


	December 31,		December 31,
	2012		2011

Assets
Cash	$	31,023	$	36,774
Patient accounts receivable, net		60,019		56,027
Income tax receivable		—		1,322
Inventories, prepaid expenses and other current assets		16,816		15,101


Total current assets		107,858		109,224

Property and equipment, net		91,026		72,416
Deferred financing costs, net		4,400		4,962
Intangible assets, net		34,480		35,416
Other long-term assets		3,238		1,734
Goodwill		551,390		504,045


Total assets	$	792,392	$	727,797


Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	51,738	$	52,682
Amount due to sellers		675		2,192
Current portion of long-term debt		3,644		2,662
Current portion of capital lease obligations		98		51


Total current liabilities		56,155		57,587

Long-term debt, less current portion		416,816		391,084
Capital lease obligations, less current portion		129		111
Other long-term liabilities		4,213		3,362
Deferred tax liabilities		17,425		16,233
Noncontrolling interests subject to put provisions		59,538		47,492
Total equity		238,116		211,928


Total liabilities and equity	$	792,392	$	727,797

(2)

American Renal Associates Holdings, Inc.

Supplemental Business Metrics

(preliminary and unaudited)


	Three Months			Three Months			Three Months			Year			Year
	Ended			Ended			Ended			Ended			Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2012			2012			2011			2012			2011
Volume
Treatments		324,810			301,901			266,313			1,187,390			1,023,444
Number of treatment days		79			78			79			313			313
Treatments per day		4,112			3,871			3,371			3,794			3,270
Non-acquired growth year over year		14.5	%		8.5	%		11.3	%		11.7	%		17.4	%

Revenue
Patient service operating revenues (in thousands)	$	116,686		$	108,288		$	93,106		$	424,010		$	360,081
Patient service operating revenues per treatment	$	359.24		$	358.69		$	349.61		$	357.09		$	351.83
Per treatment increase from previous quarter	$	0.55		$	1.29		$	(5.46	)		N/A			N/A

Provision for uncollectible accounts
As a % of patient service operating revenues		0.7	%		0.8	%		0.7	%		0.6	%		1.2	%

Expenses
Patient care costs
Amount (in thousands)	$	65,856		$	62,245		$	54,539		$	244,973		$	217,036
As a % of patient service operating revenues		56.4	%		57.5	%		58.6	%		57.8	%		60.3	%
Per treatment	$	202.75		$	206.18		$	204.79		$	206.31		$	212.06
Per treatment decrease from previous quarter	$	(3.43	)	$	(0.08	)	$	(5.66	)		N/A			N/A

General and administrative expenses
Amount (in thousands)	$	12,281		$	11,705		$	9,908		$	45,904		$	39,326
As a % of patient service operating revenues		10.5	%		10.8	%		10.6	%		10.8	%		10.9	%
Per treatment	$	37.81		$	38.77		$	37.20		$	38.66		$	38.43
Per treatment (decrease) increase from previous quarter	$	(0.96	)	$	(1.53	)	$	0.03			N/A			N/A

Adjusted EBITDA
Adjusted EBITDA including noncontrolling interests (in thousands)	$	38,330		$	34,028		$	28,376		$	132,784		$	103,879
Adjusted EBITDA (in thousands)	$	23,446		$	20,859		$	18,032		$	81,976		$	66,349

Accounts receivable DSO (days)		47			47			54			N/A			N/A

(3)

American Renal Associates Holdings, Inc.

Reconciliation of Non-GAAP Financial Measures:

(preliminary and unaudited and in thousands)

To supplement our consolidated financial statements prepared in accordance with GAAP, we use the following measures defined as Non-GAAP measures by the SEC: Adjusted EBITDA (including noncontrolling interests) and Adjusted EBITDA. Adjusted EBITDA is defined as net income attributable to ARAH before income taxes, interest expense, depreciation and amortization, and we further adjust for other non-cash charges and non-recurring charges. We believe this information is useful for evaluating our business and understanding our operating performance in a manner similar to management. We believe Adjusted EBITDA is helpful in highlighting trends because Adjusted EBITDA excludes the results of decisions that are outside the control of operating management and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. In addition, we present Adjusted EBITDA because it is one of the components used in the calculations under the covenants contained in our revolving credit facility. Adjusted EBITDA is not a measure of operating performance computed in accordance with GAAP and should not be considered as a substitute for operating income, net income, cash flows from operations, or other statement of income or cash flow data prepared in conformity with GAAP, or as measures of profitability or liquidity. In addition, Adjusted EBITDA may not be comparable to similarly titled measures for other companies. Adjusted EBITDA may not be indicative of historical operating results, and we do not mean for it to be predictive of future results of operations or cash flows. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this item in isolation, or as a substitute for an analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA:

•

does not include interest expense – as we have borrowed money for general corporate purposes, interest expense is a necessary element of our costs and ability to generate profits and cash flows;

•

does not include depreciation and amortization – because construction and operation of our dialysis clinics requires significant capital expenditures, depreciation and amortization are a necessary element of our costs and ability to generate profits;

•

does not include stock-based compensation expense;

•

does not reflect changes in, or cash requirements for, our working capital needs; and

•

does not include certain income tax payments that represent a reduction in cash available to us.

The following table presents the reconciliation from net income to Adjusted EBITDA for the periods indicated:


	Three Months			Three Months			Three Months			Year			Year
	Ended			Ended			Ended			Ended			Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2012			2012			2011			2012			2011
Reconciliation of Net income to Adjusted EBITDA:

Net income	$	18,826		$	14,898		$	10,728		$	60,449		$	40,436
Interest expense, net		10,459			10,247			9,860			40,884			36,236
Income tax expense		2,628			2,991			2,588			8,266			4,400
Depreciation and amortization		5,840			5,333			4,643			20,991			17,865
Merger related costs		—			—			154			—			604
Stock-based compensation		233			221			230			897			3,649
Management fee		344			338			173			1,297			689

Adjusted EBITDA (including noncontrolling interests)	$	38,330		$	34,028		$	28,376		$	132,784		$	103,879
Less: Net income attributable to noncontrolling interests		(14,884	)		(13,169	)		(10,344	)		(50,808	)		(37,530	)

Adjusted EBITDA	$	23,446		$	20,859		$	18,032		$	81,976		$	66,349

(4)

American Renal Holdings Inc. 8-K