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MedCath Corporation Reports Second Quarter Earnings and Provides Update to Internal Assessment
Date:5/21/2009

ear ended September 30, 2008 filed with the Securities and Exchange Commission on December 15, 2008, as updated in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009. Copies of this form including exhibits are available on the internet site of the Securities and Exchange Commission at http://www.sec.gov.

                            MEDCATH CORPORATION
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share data)
                                (Unaudited)

                               Three Months Ended     Six Months Ended
                                    March 31,             March 31,
                                 2009       2008       2009       2008

      Net revenue              $158,867  $154,200  $311,970  $300,895
      Operating expenses:
        Personnel expense        52,127    49,156   102,783    99,540
        Medical supplies
         expense                 43,811    41,656    86,462    80,398
        Bad debt expense         10,618    10,332    22,011    21,617
        Other operating
         expenses                32,344    30,424    64,580    59,442
        Pre-opening expenses        380       245       587       493
        Depreciation              7,565     7,689    15,400    15,030
        Amortization                210       135       359       262
        Loss on disposal of
         property, equipment
         and other assets            91       138       164       166
          Total operating
           expenses             147,146   139,775   292,346   276,948
      Income from operations     11,721    14,425    19,624    23,947
      Other income (expenses):
        Interest expense         (1,338)   (3,864)   (4,194)   (7,796)
        Gain (loss) on
         early extinguishment
         of debt                    259         -    (6,70
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SOURCE MedCath Corporation
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