LifeCare Holdings, Inc. Announces Year-e...( ...),Health

%

2006 2007 Change

Net patient service revenue $79,868 $79,739 -0.2%

Expenses:

Salaries, wages and benefits 36,765 38,521 4.8%

Supplies 7,281 8,509 16.9%

Rent 4,541 5,953 31.1%

Other operating expense 17,087 16,970 -0.7%

Provision for doubtful accounts 3,385 453 -86.6%

Depreciation and amortization 3,054 2,570 -15.8%

Goodwill impairment charges 19,000 35,000 84.2%

Long-lived asset impairment charges 945 - NM

Interest expense, net 8,234 9,445 14.7%

100,292 117,421 17.1%

Operating loss (20,424) (37,682) 84.5%

Equity in loss of joint venture - (246) NM

Loss before income taxes (20,424) (37,928) 85.7%

Provision for (benefit from) income

taxes (802) 2,729 -440.3%

Net loss $(19,622) $(40,657) 107.2%

Reconciliation to Credit Agreement

EBITDA:

Operating loss - per above $(20,424) $(37,682)

Adjusted for:

Interest expense, net 8,234 9,445

Depreciation and amortization 3,054 2,570

Goodwill impairment charges 19,000 35,000

Stock compensation expense 164 169

Cost saving initiatives - 320

Hospital closure/reloca
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