MedCath Corporation Reports First Quarte...( CHARLOTTE N.C. Feb. 7 /- MedCath ...),Health

CHARLOTTE, N.C., Feb. 7 /PRNewswire-FirstCall/ -- MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity healthcare services, predominately the diagnosis and treatment of cardiovascular disease, today announced its operating results for its first fiscal quarter, which ended December 31, 2007.

First Quarter 2008 Results

During its fourth quarter of fiscal 2007, MedCath completed the recapitalization of Harlingen Medical Center ("HMC"). As part of the recapitalization, MedCath's ownership in HMC was reduced from a majority ownership of 51.0% to a minority ownership of 36.0%. Due to this change in ownership, MedCath began accounting for HMC as an equity investment in the quarter ended September 30, 2007. As such, MedCath's consolidated operating results for the quarter ended December 31, 2007 exclude net revenue, income from operations and Adjusted EBITDA of HMC. In comparison, MedCath's consolidated results for the comparable quarter of the previous fiscal year include the consolidated financial results of HMC. As detailed below, any reduction in MedCath's primary consolidated financial measures is due to the reclassification of HMC from a consolidated subsidiary to an equity investment.

MedCath's reported net revenue decreased 6.8% to $163.7 million in the first quarter of fiscal 2008 from $175.5 million in the first quarter of fiscal 2007, which included $18.4 million attributable to HMC. Excluding this amount from prior year's results, net revenue increased 4.2%. Income from operations increased 6.4% to $11.4 million in the first quarter of fiscal 2008 from $10.7 million in the first quarter of fiscal 2007, which included $0.9 million attributable to HMC. Excluding this amount from prior yea
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