MEDCATH CORPORATION 
By CHARLOTTE, N.C., Aug. 9, 2011 /PRNewswire/ -- MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity healthcare services, today announced operating results for its third fiscal quarter ended June 30, 2011. The results for MedCath's third fiscal quarter include Heart Hospital of New Mexico and Arkansas Heart Hospital, which were sold on August 1, 2011.
Third Fiscal Quarter Highlights
-- Net revenue of $91.8 million, down 1.4% compared to the third quarter of
fiscal 2010.
-- Total admissions and adjusted admissions of 4,779 and 7,249, down 1.2%
and 0.7%, respectively, compared to the third quarter of fiscal 2010.
-- Loss from continuing operations of ($3.1) million and Adjusted EBITDA of
$4.6 million, down 41.0% compared to third quarter of fiscal 2010.
-- Diluted loss per share from continuing operations of ($0.15) and
Adjusted EPS of ($0.03).
-- Total cash of $113.7 million as of the end of the third quarter of
fiscal 2011 after repayment of $30.2 million in third party debt
outstanding.
Third Quarter of Fiscal 2011 Results Compared to Third Quarter of Fiscal 2010 Results
MedCath's reported net revenue decreased 1.4% to $91.8 million in the third quarter of fiscal 2011 compared to $93.1 million in the third quarter of fiscal 2010. Net income was $12.3 million in the third quarter of fiscal 2011 compared to a net loss of $(12.8) million in the third quarter of fiscal 2010. MedCath's loss from continuing operations was $(3.1) million, or $(0.15) per diluted share, in the third quarter of fiscal 2011 compared to $(14.8) million, or $(0.74) per diluted share, in the third quarter of fiscal 2010.
MedCath's third quarter of fiscal 2011 financial results included the following items:
-- $0.8 million, or ($0.02) per diluted share, in long-lived asset
impairment expense in the Corporate division related to undeveloped land
located adjacent to one of MedCath's hospitals;
-- $2.7 million, or ($0.09) per diluted share, of professional fees and
other expenses incurred in connection with MedCath's strategic options
process announced on March 1, 2010; and
-- $0.4 million, or ($0.01) per diluted share, in share-based compensation
expense.
-- MedCath's third quarter of fiscal 2010 financial results included the
following items:
-- $22.8 million, or ($0.69) per diluted share, in impairment expense;
-- $0.6 million, or ($0.02) per diluted share, in share-based compensation
expense; and
-- $1.4 million, or ($0.06) per diluted share, of professional fees and
other expenses incurred in connection with MedCath's strategic options
process announced on March 1, 2010.
Adjusted EBITDA was $4.6 million in the third quarter of fiscal 2011 compared to $7.8 million in the same period of the prior year. MedCath's Adjusted EPS for the third quarter of fiscal 2011 was $(0.03) compared with $0.03 in the third quarter of fiscal 2010.
Commenting on the quarter, O. Edwin French, MedCath President and Chief Executive Officer, stated, "During our third fiscal quarter, we continued to make progress regarding our strategic options process, completing the sale of our MedCath Partners division and announcing two hospital transactions that closed August 1. Operationally, our results this quarter were impacted by a 9.8% reduction in open heart procedures, contributing to a decline in net revenue and Adjusted EBITDA, and lower financial results at one hospital that was sold during our fourth quarter of fiscal 2011."
Operating Statistics and Debt Repayment
MedCath's financial results for the third fiscal quarter ended June 30, 2011, reflect a 1.2% decrease in total admissions and a 0.7% decrease in adjusted admissions compared to the third quarter of fiscal 2010. Hospital outpatient cases, including emergency department visits, totaled 15,493 in the third quarter of fiscal 2011, up 8.6% compared to the third quarter of fiscal 2010.
Total uncompensated care, which includes charity care plus bad debt expense, equaled 13.6% of hospital division net patient revenue before the deduction for charity care in the third quarter of fiscal 2011 compared to 13.1% in the third quarter of fiscal 2010.
We received $29.8 million in cash from the sale of assets during the third quarter of fiscal 2011, which was used, together with cash on hand, to repay $30.2 million in third party debt outstanding.
Update on Strategic Options Process
On August 1, 2011, MedCath announced the completion of separate transactions related to the sale of its equity interest in Arkansas Heart Hospital and the sale of substantially all the assets of Heart Hospital of New Mexico. These transactions represented the eighth and ninth transactions since MedCath announced its strategic options process in March 2010. MedCath anticipates that final net proceeds from these two transactions, after liquidation of retained assets and prior to payment of any contingent or unknown liabilities, to be approximately $122.0 million. Following these transactions, MedCath owns interest and operates four hospitals, three of which it owns a majority interest and one in which it owns a minority interest.
Use of Non-GAAP Financial Measures
Included in this press release and the supplemental financial information furnished herewith are certain financial measures that are not calculated and presented in conformity with generally accepted accounting principles ("non-GAAP measures"), such as adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") and adjusted diluted earnings per share from continuing operations ("Adjusted EPS"). The supplemental financial information furnished herewith provides a quantitative reconciliation of Adjusted EBITDA and Adjusted EPS based on the following calculations as and for the periods identified below.
Adjusted EBITDA for the third fiscal quarter of 2011 represents MedCath's loss from continuing operations, net of taxes attributable to MedCath's common stockholders; income tax benefit, net income attributable to noncontrolling interests; equity in net earnings of unconsolidated affiliates; interest and other income; interest expense; loss on disposal of property, equipment and other assets; impairment on long-lived assets; depreciation; share-based compensation expense, and professional fees associated with MedCath's exploration of strategic options. Adjusted EPS for the third fiscal quarter of fiscal 2011 represents MedCath's diluted loss per share from continuing operations adjusted for professional fees associated with MedCath's consideration of strategic options; impairment on long-lived assets and share-based compensation expense.
Adjusted EBITDA for the first nine months of fiscal 2011 represents MedCath's loss from continuing operations, net of taxes attributable to MedCath's common stockholders; income tax benefit, net income attributable to noncontrolling interests; equity in net earnings of unconsolidated affiliates; interest and other income; gain on sale of unconsolidated affiliates; interest expense; (gain) loss on disposal of property, equipment and other assets; impairment on long-lived assets; depreciation; share-based compensation expense; professional fees associated with MedCath's exploration of strategic options, and sales tax refunds. Adjusted EPS for the first nine months of fiscal 2011 represents MedCath's diluted loss per share from continuing operations adjusted for gain on sale of unconsolidated affiliates; professional fees associated with MedCath's consideration of strategic options; sales tax refunds; impairment on long-lived assets and share-based compensation expense.
Adjusted EBITDA for the third fiscal quarter of 2010 represents MedCath's loss from continuing operations, net of taxes attributable to MedCath's common stockholders, income tax benefit; net income attributable to noncontrolling interests; equity in earnings of unconsolidated affiliates; interest and other income, net; interest expense; loss on disposal of property, equipment and other assets; depreciation; share-based compensation expense, impairment on long-lived assets, and professional fees associated with MedCath's exploration of strategic options. Adjusted EPS for the third fiscal quarter of fiscal 2010 represents MedCath's diluted loss per share from continuing operations adjusted for share-based compensation expense; impairment loss on long-lived assets, and professional fees associated with MedCath's exploration of strategic options.
Adjusted EBITDA for the first nine months of fiscal quarter of 2010 represents MedCath's loss from continuing operations, net of taxes attributable to MedCath's common stockholders, income tax benefit; net income attributable to non-controlling interests; equity in earnings of unconsolidated affiliates; interest and other income, net; loss on note receivable; interest expense; (gain) loss on disposal of property, equipment and other assets; impairment of long-lived assets; depreciation; per-opening expenses; share-based compensation expense, and professional fees associated with MedCath's exploration of strategic options. Adjusted EPS for the third fiscal quarter of fiscal 2010 represents MedCath's diluted loss per share from continuing operations adjusted for professional fees associated with MedCath's exploration of strategic options; impairment on long-lived assets; loss on note receivable; share-based compensation expense, and pre-opening expenses.
MedCath's management uses Adjusted EBITDA to measure the performance of MedCath's various operating entities, to compare actual results to historical and budgeted results and to make capital allocation decisions. Management provides Adjusted EBITDA and Adjusted EPS to investors to assist them in performing their analyses of MedCath's historical operating results. Further, management believes that many investors in MedCath also invest in, or have knowledge of, other healthcare companies that use Adjusted EBITDA and/or Adjusted EPS as a financial performance measure. Because Adjusted EBITDA and Adjusted EPS are non-GAAP measures, Adjusted EBITDA and Adjusted EPS, as defined above, may not be comparable to other similarly titled measures of other companies. MedCath has included a supplemental schedule with the financial statements that accompanies this press release that reconciles historical Adjusted EBITDA to MedCath's income from continuing operations attributable to MedCath's common stockholders and Adjusted EPS to diluted EPS from continuing operations.
This press release and the financial information included therewith will be accessible on the web, by going to www.medcath.com, "Investor Relations," then clicking on "News."
MedCath Corporation, headquartered in Charlotte, N.C., is a healthcare provider focused on high acuity services with the diagnosis and treatment of cardiovascular disease being a primary service offering. MedCath owns an interest in and operates four hospitals with a total of 366 licensed beds, located in Arizona, California, Louisiana, and Texas.
Parts of this announcement contain forward-looking statements that involve risks and uncertainties. Although management believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic, regulatory and competitive uncertainties and contingencies that are difficult or impossible to predict accurately and are beyond our control including, but not limited to, the implementation of healthcare reform legislation and future enactment of changes in federal law that would further limit physician hospital ownership. Actual results could differ materially from those projected in these forward-looking statements. We do not assume any obligation to update these statements in a news release or otherwise should material facts or circumstances change in ways that would affect their accuracy. The preparation of MedCath's third quarter of fiscal 2011 operating results required management to make estimates and assumptions that affect reported amounts of revenues and expenses. There is a reasonable possibility that actual results may vary significantly from those estimates.
These various risks and uncertainties are described in detail in "Risk Factors" in MedCath's Annual Report or Form 10-K for the year ended September 30, 2010 filed with the Securities and Exchange Commission on December 14, 2010, as amended. Copies of our filings with the Securities and Exchange Commission, including exhibits, are available at www.sec.gov to review.
MEDCATH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
---------------------------
2011 2010
---- ----
Net revenue $91,839 $93,139
Operating expenses:
Personnel expense 31,514 31,090
Medical supplies expense 24,219 23,559
Bad debt expense 10,767 10,782
Other operating expenses 23,919 21,915
Pre-opening expenses - -
Depreciation 3,745 5,389
Impairment of long-lived assets 810 22,813
(Gain) loss on disposal of
property, equipment and other
assets (212) 12
---- ---
Total operating expenses 94,762 115,560
------ -------
Loss from operations (2,923) (22,421)
Other income (expenses):
Interest expense (556) (1,050)
Interest and other income 76 56
Gain on sale of unconsolidated
affiliates - -
Loss on note receivable - -
Equity in net earnings of
unconsolidated affiliates 303 1,391
--- -----
Total other income (expense), net (177) 397
---- ---
Loss from continuing operations
before income taxes (3,100) (22,024)
Income tax benefit (1,862) (8,818)
------ ------
Loss from continuing operations (1,238) (13,206)
Income from discontinued
operations, net of taxes 15,260 2,745
------ -----
Net (loss) income 14,022 (10,461)
Less: Net income attributable to
noncontrolling interests (1,691) (2,355)
------ ------
Net income (loss) attributable to
MedCath Corporation $12,331 $(12,816)
======= ========
Amounts attributable to MedCath
Corporation common stockholders:
Loss from continuing operations,
net of taxes $(3,088) $(14,823)
Income from discontinued
operations, net of taxes 15,419 2,007
Net income (loss) $12,331 $(12,816)
======= ========
Earnings (loss) per share, basic
Loss from continuing operations
attributable to MedCath
Corporation common stockholders $(0.15) $(0.74)
Income from discontinued operations
attributable to MedCath
Corporation common stockholders 0.76 0.10
---- ----
Earnings (loss) per share, basic $0.61 $(0.64)
----- ------
Earnings (loss) per share, diluted
Loss from continuing operations
attributable to MedCath
Corporation common stockholders $(0.15) $(0.74)
Income from discontinued operations
attributable to MedCath
Corporation common stockholders 0.76 0.10
---- ----
Earnings (loss) per share, diluted $0.61 $(0.64)
----- ------
Weighted average number of shares,
basic 20,245 19,829
Dilutive effect of stock options
and restricted stock 7 -
--- ---
Weighted average number of shares,
diluted 20,252 19,829
====== ======
Nine Months Ended June 30,
--------------------------
2011 2010
---- ----
Net revenue $273,617 $271,625
Operating expenses:
Personnel expense 96,490 93,950
Medical supplies expense 66,573 68,938
Bad debt expense 30,483 28,196
Other operating expenses 69,476 64,005
Pre-opening expenses - 866
Depreciation 12,092 15,773
Impairment of long-lived assets 20,358 37,513
(Gain) loss on disposal of
property, equipment and other
assets (141) 43
---- ---
Total operating expenses 295,331 309,284
------- -------
Loss from operations (21,714) (37,659)
Other income (expenses):
Interest expense (2,605) (3,046)
Interest and other income 615 141
Gain on sale of unconsolidated
affiliates 15,391 -
Loss on note receivable - (1,507)
Equity in net earnings of
unconsolidated affiliates 1,679 3,984
----- -----
Total other income (expense), net 15,080 (428)
------ ----
Loss from continuing operations
before income taxes (6,634) (38,087)
Income tax benefit (5,370) (15,840)
------ -------
Loss from continuing operations (1,264) (22,247)
Income from discontinued
operations, net of taxes 53,475 1,283
------ -----
Net (loss) income 52,211 (20,964)
Less: Net income attributable to
noncontrolling interests (16,336) (5,718)
------- ------
Net income (loss) attributable to
MedCath Corporation $35,875 $(26,682)
======= ========
Amounts attributable to MedCath
Corporation common stockholders:
Loss from continuing operations,
net of taxes $(8,754) $(27,298)
Income from discontinued
operations, net of taxes 44,629 616
Net income (loss) $35,875 $(26,682)
======= ========
Earnings (loss) per share, basic
Loss from continuing operations
attributable to MedCath
Corporation common stockholders $(0.43) $(1.38)
Income from discontinued operations
attributable to MedCath
Corporation common stockholders 2.21 0.03
---- ----
Earnings (loss) per share, basic $1.78 $(1.35)
----- ------
Earnings (loss) per share, diluted
Loss from continuing operations
attributable to MedCath
Corporation common stockholders $(0.43) $(1.38)
Income from discontinued operations
attributable to MedCath
Corporation common stockholders 2.21 0.03
---- ----
Earnings (loss) per share, diluted $1.78 $(1.35)
----- ------
Weighted average number of shares,
basic 20,132 19,823
Dilutive effect of stock options
and restricted stock 6 -
--- ---
Weighted average number of shares,
diluted 20,138 19,823
====== ======
MEDCATH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30, September 30,
2011 2010
---- ----
(Unaudited)
Current assets:
Cash and cash equivalents $113,669 $32,892
Accounts receivable, net 44,423 42,141
Income tax receivable - 6,188
Medical supplies 10,338 10,540
Deferred income tax assets 8,678 13,247
Prepaid expenses and other current assets 12,259 13,339
Current assets of discontinued operations 45,495 49,963
------ ------
Total current assets 234,862 168,310
Property and equipment, net 143,815 174,287
Other assets 22,416 15,983
Non-current assets of discontinued
operations 3,083 135,958
----- -------
Total assets $404,176 $494,538
======== ========
Current liabilities:
Accounts payable $17,088 $15,550
Income tax payable 7,158 -
Accrued compensation and benefits 12,662 15,951
Other accrued liabilities 16,126 16,155
Current portion of long-term debt and
obligations
under capital leases 2,339 16,566
Current liabilities of discontinued
operations 13,533 36,291
------ ------
Total current liabilities 68,906 100,513
Long-term debt - 52,500
Obligations under capital leases 4,295 5,999
Other long-term obligations 3,062 5,053
Long-term liabilities of discontinued
operations - 36,469
--- ------
Total liabilities 76,263 200,534
Commitments and contingencies
Redeemable noncontrolling interest 8,280 11,534
Stockholders' equity:
Preferred stock, $0.01 par value,
10,000,000 shares authorized;
none issued - -
Common stock, $0.01 par value, 50,000,000
shares authorized;
22,270,012 issued and 20,315,651
outstanding at June 30, 2011;
22,423,666 issued and 20,469,305
outstanding at September 30, 2010 216 216
Paid-in capital 458,729 457,725
Accumulated deficit (103,916) (139,791)
Accumulated other comprehensive loss - (444)
Treasury stock, at cost;
1,954,361 shares at June 30, 2011 and
September 30, 2010 (44,797) (44,797)
------- -------
Total MedCath Corporation stockholders'
equity 310,232 272,909
Noncontrolling interest 9,401 9,561
----- -----
Total equity 319,633 282,470
------- -------
Total liabilities and equity $404,176 $494,538
======== ========
MEDCATH CORPORATION
SELECTED OPERATING DATA
(In thousands, except per share data and selected operating data)
(Unaudited)
Three Months Ended June 30,
---------------------------
2011 2010 % Change
---- ---- --------
Statement of Operations
Data:
Net revenue $91,839 $93,139 (1.4)%
Adjusted EBITDA (1) $4,589 $7,783 (41.0)%
Loss from operations $(2,923) $(22,421) (87.0)%
Loss from continuing
operations, net of
taxes $(3,088) $(14,823) (79.2)%
Loss per share from
continuing operations,
basic $(0.15) $(0.74) (79.3)%
Loss per share from
continuing operations,
diluted $(0.15) $(0.74) (79.3)%
(1) See Supplemental
Financial Disclosure-
Reconciliation of GAAP
Financial Measures to Non-
GAAP Financial Measures.
Three Months Ended June 30,
---------------------------
2011 2010 % Change
---- ---- --------
Selected Operating Data
(a):
Number of hospitals 5 5
Licensed beds (c) 421 421
Staffed and available
beds (d) 380 380
Admissions (e) 4,779 4,835 (1.2)%
Adjusted admissions (f) 7,249 7,300 (0.7)%
Patient days (g) 17,672 18,223 (3.0)%
Adjusted patient days
(h) 26,939 27,546 (2.2)%
Average length of stay
(days) (i) 3.70 3.77 (1.9)%
Occupancy (j) 51.1% 52.7%
Inpatient
catheterization
procedures (k) 2,002 2,048 (2.2)%
Inpatient surgical
procedures (l) 1,125 1,216 (7.5)%
Hospital net revenue $91,766 $93,030 (1.4)%
Combined Operating Data
(b):
Number of hospitals 6 6
Licensed beds (c) 533 533
Staffed and available
beds (d) 489 489
Admissions (e) 6,353 6,543 (2.9)%
Adjusted admissions (f) 10,366 10,520 (1.5)%
Patient days (g) 22,556 23,416 (3.7)%
Adjusted patient days
(h) 36,612 37,336 (1.9)%
Average length of stay
(days) (i) 3.55 3.58 (0.8)%
Occupancy (j) 50.7% 52.6%
Inpatient
catheterization
procedures (k) 2,134 2,217 (3.7)%
Inpatient surgical
procedures (l) 1,527 1,640 (6.9)%
Hospital net revenue $117,525 $118,618 (0.9)%
Nine Months Ended June 30,
--------------------------
2011 2010 % Change
---- ---- --------
Statement of Operations
Data:
Net revenue $273,617 $271,625 0.7%
Adjusted EBITDA (1) $19,558 $20,352 (3.9)%
Loss from operations $(21,714) $(37,659) (42.3)%
Loss from continuing
operations, net of
taxes $(8,754) $(27,298) (67.9)%
Loss per share from
continuing operations,
basic $(0.43) $(1.38) (68.4)%
Loss per share from
continuing operations,
diluted $(0.43) $(1.38) (68.4)%
(1) See Supplemental
Financial Disclosure-
Reconciliation of GAAP
Financial Measures to Non-
GAAP Financial Measures.
Nine Months Ended June 30,
--------------------------
2011 2010 % Change
---- ---- --------
Selected Operating Data
(a):
Number of hospitals 5 5
Licensed beds (c) 421 421
Staffed and available
beds (d) 380 380
Admissions (e) 14,115 14,244 (0.9)%
Adjusted admissions (f) 21,308 21,051 1.2%
Patient days (g) 52,741 53,588 (1.6)%
Adjusted patient days
(h) 80,088 79,461 0.8%
Average length of stay
(days) (i) 3.74 3.76 (0.5)%
Occupancy (j) 50.8% 51.7%
Inpatient
catheterization
procedures (k) 5,731 6,073 (5.6)%
Inpatient surgical
procedures (l) 3,343 3,474 (3.8)%
Hospital net revenue $273,379 $271,293 0.8%
Combined Operating Data
(b):
Number of hospitals 6 6
Licensed beds (c) 533 533
Staffed and available
beds (d) 489 489
Admissions (e) 19,260 19,685 (2.2)%
Adjusted admissions (f) 30,953 31,154 (0.6)%
Patient days (g) 68,769 70,125 (1.9)%
Adjusted patient days
(h) 110,136 110,168 (0.0)%
Average length of stay
(days) (i) 3.57 3.56 0.3%
Occupancy (j) 51.5% 52.5%
Inpatient
catheterization
procedures (k) 6,232 6,673 (6.6)%
Inpatient surgical
procedures (l) 4,580 4,640 (1.3)%
Hospital net revenue $352,849 $346,598 1.8%
(a) Selected operating data includes consolidated hospitals in
operation as of the end of the period reported in continuing
operations but does not include hospitals which are accounted for
using the equity method or as discontinued operations in our
consolidated financial statements.
(b) Combined operating data includes hospitals in operation as of
the end of the period reported in continuing operations including
hospitals which are accounted for using the equity method in our
consolidated financial statements.
(c) Licensed beds represent the number of beds for which the
appropriate state agency licenses a facility regardless of whether
the beds are actually available for patient use.
(d) Staffed and available beds represent the number of beds that
are readily available for patient use at the end of the period.
(e) Admissions represent the number of patients admitted for
inpatient treatment.
(f) Adjusted admissions is a general measure of combined inpatient
and outpatient volume. We computed adjusted admissions by dividing
gross patient revenue by gross inpatient revenue and then
multiplying the quotient by admissions.
(g) Patient days represent the total number of days of care
provided to inpatients.
(h) Adjusted patient days is a general measure of combined inpatient
and outpatient volume. We computed adjusted patient days by
dividing gross patient revenue by gross inpatient revenue and then
multiplying the quotient by patient days.
(i) Average length of stay (days) represents the average number of
days inpatients stay in our hospitals.
(j) We computed occupancy by dividing patient days by the number of
days in the period and then dividing the quotient by the number of
staffed and available beds.
(k) Inpatients with a catheterization procedure represent the
number of inpatients with a procedure performed in one of the
hospitals' catheterization labs during the period.
(l) Inpatient surgical procedures represent the number of surgical
procedures performed on inpatients during the period.
MEDCATH CORPORATION
SUPPLEMENTAL FINANCIAL DISCLOSURE -RECONCILIATION OF GAAP FINANCIAL
MEASURES
TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
The following table reconciles
the loss from continuing
operations, net of taxes
attributable to MedCath
Corporation's common
stockholders as derived directly
from MedCath Corporation's
consolidated financial
statements to Adjusted EBITDA
for the three and nine months
ended June 30, 2011 and 2010.
Three Months Ended June 30,
---------------------------
2011 2010
---- ----
(in thousands)
Loss from continuing
operations, net of taxes $(3,088) $(14,823)
Add:
Income tax benefit (1,862) (8,818)
Net income attributable to
noncontrolling interests 1,850 1,617
Equity in net earnings of
unconsolidated affiliates (303) (1,391)
Interest and other income (76) (56)
Loss on note receivable - -
Gain on sale of unconsolidated
affiliates - -
Interest expense 556 1,050
(Gain) loss on disposal of
property, equipment and other
assets (212) 12
Impairment of long-lived
assets 810 22,813
Depreciation 3,745 5,389
Pre-opening expenses - -
Share-based compensation
expense 428 554
Professional fees for strategic
options process 2,741 1,436
Sales tax refunds, net - -
--- ---
Adjusted EBITDA $4,589 $7,783
====== ======
The following table reconciles
MedCath Corporation's diluted
(loss) earnings per share from
continuing operations, net of
taxes attributable to MedCath
Corporation's common
stockholders as derived directly
from MedCath's consolidated
financial statements to Adjusted
diluted earnings per share from
continuing operations (inclusive
of the effect of dilutive
shares) for the three and nine
months ended June 30, 2011 and
2010.
Three Months Ended June 30,
---------------------------
2011 2010
---- ----
Diluted (loss) earnings per
share $(0.15) $(0.74)
Add:
Gain on sale of unconsolidated
affiliates - -
Professional fees for strategic
options process 0.09 0.06
Sales tax refunds - -
Impairment of long-lived
assets 0.02 0.69
Loss on note receivable - -
Share-based compensation
expense 0.01 0.02
Pre-opening expense - -
--- ---
Adjusted diluted (loss)
earnings per share $(0.03) $0.03
====== =====
The following table
reconciles the loss from
continuing operations, net
of taxes attributable to
MedCath Corporation's common
stockholders as derived
directly from MedCath
Corporation's consolidated
financial statements to
Adjusted EBITDA for the
three and nine months ended
June 30, 2011 and 2010.
Nine Months Ended June 30,
--------------------------
2011 2010
---- ----
(in thousands)
Loss from continuing
operations, net of taxes $(8,754) $(27,298)
Add:
Income tax benefit (5,370) (15,840)
Net income attributable to
noncontrolling interests 7,490 5,051
Equity in net earnings of
unconsolidated affiliates (1,679) (3,984)
Interest and other income (615) (141)
Loss on note receivable - 1,507
Gain on sale of
unconsolidated affiliates (15,391) -
Interest expense 2,605 3,046
(Gain) loss on disposal of
property, equipment and
other assets (141) 43
Impairment of long-lived
assets 20,358 37,513
Depreciation 12,092 15,773
Pre-opening expenses - 866
Share-based compensation
expense 3,282 2,380
Professional fees for
strategic options process 7,768 1,436
Sales tax refunds, net (2,087) -
------ ---
Adjusted EBITDA $19,558 $20,352
======= =======
The following table
reconciles MedCath
Corporation's diluted (loss)
earnings per share from
continuing operations, net
of taxes attributable to
MedCath Corporation's common
stockholders as derived
directly from MedCath's
consolidated financial
statements to Adjusted
diluted earnings per share
from continuing operations
(inclusive of the effect of
dilutive shares) for the
three and nine months ended
June 30, 2011 and 2010.
Nine Months Ended June 30,
--------------------------
2011 2010
---- ----
Diluted (loss) earnings per
share $(0.43) $(1.38)
Add:
Gain on sale of
unconsolidated affiliates (0.47) -
Professional fees for
strategic options process 0.23 0.04
Sales tax refunds (0.06) -
Impairment of long-lived
assets 0.62 1.15
Loss on note receivable - 0.05
Share-based compensation
expense 0.10 0.07
Pre-opening expense - 0.03
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Adjusted diluted (loss)
earnings per share $(0.01) $(0.04)
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SOURCE MedCath Corporation
