Navigation Links
MedCath Corporation Reports Fourth Quarter Earnings
Date:11/11/2009

CHARLOTTE, N.C., Nov. 11 /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 unaudited operating results for its fourth quarter and fiscal year which ended September 30, 2009.

Fourth Quarter 2009 Summary

  • Net revenue of $148.0 million, or $149.4 million after excluding the impact of third-party payor cost report settlements that reduced fourth quarter net revenue by $1.4 million, an increase of 2.0% over the fourth quarter of fiscal 2008.
  • Adjusted EBITDA of $11.0 million for the fourth quarter, excluding the impact of the $1.4 million third-party payor cost report settlements.
  • Operating cash flows from continuing operations of $10.7 million and Free Cash Flows of $3.7 million.
  • 4.6% increase in patient visits, including inpatient and outpatient cases, and emergency department visits, compared to the fourth quarter of fiscal 2008.
  • EPS from continuing operations of $(3.14) or Adjusted EPS from continuing operations of $0.04, excluding pre-opening expense, stock-based compensation expense and non-cash goodwill impairment expense and other items.

Fourth Quarter 2009 Results

Due to an increase in patient volumes and higher revenue per adjusted admission, MedCath's net revenue for the fourth quarter of fiscal 2009 increased 1.7% to $148.0 million from $145.5 million in the fourth quarter of fiscal 2008. Loss from operations, which includes a $60.2 million non-cash goodwill impairment expense, was $(62.8) million as compared to income from operations of $4.4 million in the fourth quarter of fiscal 2008. MedCath's loss from continuing operations was $(61.9) million, or $(3.14) per diluted share, in the fourth quarter of fiscal 2009 compared to income from continuing operations of $0.2 million, or $0.01 per diluted share, in the fourth quarter of fiscal 2008. Adjusted EBITDA decreased to $9.5 million from $11.5 million in the same period of the prior year.

MedCath's fourth quarter of fiscal 2009 results include a $60.2 million non-cash impairment charge related to MedCath's goodwill, which was primarily recognized as a result of MedCath's going-private transaction in 1998. As required by generally accepted accounting principles, MedCath tested goodwill for impairment by comparing the fair value of the hospital division to its carrying value including goodwill. As a result of MedCath's sustained decline in market capitalization, MedCath determined that goodwill was impaired as of September 30, 2009. The non-cash impairment expense did not affect MedCath's operations, cash flow, cash position or access to its bank facility. However, this impairment expense reduced income from continuing operations by $60.2 million and earnings per share by $(3.05) for the fourth quarter of fiscal 2009.

"Despite the net loss incurred this quarter, we have continued to move forward with our transformation strategy by increasing the number of acute care beds in our asset base," said Ed French, MedCath's President and Chief Executive Officer. "We most recently opened and received the necessary license for our 70-bed Hualapai Mountain Medical Center, located in Kingman, Arizona, and we look forward to servicing the needs of the Kingman and northern Arizona community. This follows the opening of our new patient tower at Louisiana Medical Center and Heart Hospital in June 2009, increasing that hospital by 79 beds and diversifying the hospital's service line. With the opening of Hualapai Mountain Medical Center and the expansion of Louisiana Medical Center and Heart Hospital, we now have 825 beds in service, up 22% from a year earlier, allowing us the opportunity to provide meaningful growth in the future."

In addition to the non-cash goodwill impairment expense, MedCath's operating results for the fourth quarter of fiscal 2009 reflect the following items:

  • $1.5 million, or $0.04, net per diluted share of the decrease in net revenue and Adjusted EBITDA related to anticipated settlement of third-party payor cost reports at two hospitals, and
  • $0.9 million, or $0.03 per diluted share, in amortization expense related to the termination of a management contract at MedCath Partners Division.

MedCath's fourth quarter of fiscal 2008 results include the impact of certain items that collectively had a $1.0 million negative impact to net revenue and Adjusted EBITDA and a $0.02 impact to EPS from continuing operations.

Adjusted EBITDA excludes share-based compensation and pre-opening expenses, but these items are included as a component of (loss) income from continuing operations. Share-based compensation expense totaled $0.3 million in the fourth quarter of fiscal 2009, or $0.01 per diluted share, compared to a benefit of $0.5 million, or $0.01 per diluted share, in the fourth quarter of fiscal 2008. Pre-opening expenses, which are related to the development of Hualapai Mountain Medical Center, totaled $2.2 million in the fourth quarter of fiscal 2009, or $0.05 per diluted share, compared to $0.1 million in the fourth quarter of fiscal 2008.

During the quarter, MedCath completed the disposition of Sun City Cardiac Centers Associates ("Sun City") a partnership owned 60% by MedCath Partners, LLC, a wholly owned subsidiary of MedCath, and 40% by certain physician and other investors. As a result of this disposition, the operating results of Sun City are classified as discontinued operations for all reporting periods contained in this press release and accompanying financial statements.

Fourth Quarter Operating Statistics, Cash Flow and Capital Expenditures

Same facility hospital admissions in the fourth quarter of fiscal 2009 were 6,707, down 3.7% compared with the fourth quarter of fiscal 2008. Adjusted admissions totaled 10,262, up 3.0% compared with the fourth quarter of fiscal 2008. Same facility hospital outpatient cases totaled 16,136 in the fourth quarter of fiscal 2009, up 11.6% in comparison with the fourth quarter of fiscal 2008.

Total uncompensated care, which includes charity care plus bad debt expense, equaled 12.1% of hospital division net patient revenue before the deduction for charity care in the fourth quarter of fiscal 2009 versus 10.5% for the fourth quarter of fiscal 2008. The increase in uncompensated care expense is primarily related to:

  1. An 8.3% increase in self-pay revenue in the quarter, and
  2. Additional reserves of approximately $2.0 million to reflect a reduction in the collection rate and aging of self-pay and the self-pay balance after insurance receivables.

Net cash provided by operating activities of continuing operations for the fourth quarter of fiscal 2009 increased 8.1% to $10.7 million from $9.9 million in the fourth quarter of fiscal 2008. Cash paid for capital expenditures during the fourth quarter of fiscal 2009 totaled $21.7 million, which included $7.0 million related to maintenance expenditures and $14.7 million related to MedCath's construction projects. MedCath's Free Cash Flows totaled $3.7 million for the fourth quarter of fiscal 2009. As of September 30, 2009, MedCath's balance sheet included cash and cash equivalents of $32.0 million, total debt and capitalized leases of $127.8 million and total assets of $590.4 million.

Fiscal 2009 Results

For the fiscal year ended September 30, 2009, MedCath's net revenue was $602.0 million, an increase of 1.8% when compared to the fiscal year ended September 30, 2008. Adjusted EBITDA was $55.6 million, and loss from continuing operations was ($58.4) million for fiscal 2009 compared to $74.8 million and $12.4 million, respectively for fiscal 2008. EPS was ($2.98) per diluted share for fiscal 2009 compared to $0.61 per diluted share for fiscal 2008.

MedCath's fiscal year 2009 results include the impact of certain items that collectively had a $4.5 million negative impact to net revenue, a $12.8 million negative impact to Adjusted EBITDA and a $(3.65) impact to EPS from continuing operations.

MedCath's fiscal year 2008 actual results include the impact of certain items that collectively had a $1.4 million negative impact to net revenue, a $7.6 million negative impact to Adjusted EBITDA and a $(0.21) impact to EPS from continuing operations.

Share-based compensation expense totaled $2.4 million in fiscal 2009, compared to $5.0 million in fiscal 2008. Adjusted EBITDA disclosed above does not include this expense but the expense is included as a component of (loss) income from continuing operations.

Fiscal Year Operating Statistics, Cash Flow and Capital Expenditures

Same facility hospital admissions for fiscal 2009 were 26,856, down 8.3% compared with fiscal 2008. Adjusted admissions totaled 40,964, up 0.2% compared with fiscal 2008. Same facility hospital outpatient cases totaled 61,383 in fiscal 2009, up 11.5% in comparison with fiscal 2008.

Total uncompensated care, which includes charity care plus bad debt expense, equaled 9.6% of hospital division net patient revenue before the deduction for charity care for fiscal 2009 versus 10.1% for fiscal 2008.

Net cash provided by operating activities of continuing operations for fiscal 2009 increased 48.8% to $64.3 million from $43.2 million in the fourth quarter of fiscal 2008. Cash paid for capital expenditures during fiscal 2009 totaled $93.9 million, which included $24.3 million related to maintenance expenditures and $69.6 million related to MedCath's construction projects. Free Cash Flows totaled $40.0 million for 2009 fiscal year and $19.0 million for the 2008 fiscal year.

Use of Non-GAAP Financial Measures

Included in the press release are certain financial measures that are not generally accepted accounting principles ("non-GAAP"), such as adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA"); adjusted diluted earnings per share from continuing operations ("Adjusted EPS"); and Free Cash Flows. Adjusted EBITDA represents MedCath's (loss) income from continuing operations before interest expense; loss on early extinguishment of debt; income tax (benefit) expense; depreciation; amortization; share-based compensation expense; loss (gain) on disposal of property, equipment and other assets; interest and other income; equity in net earnings of unconsolidated affiliates; minority interest share of earnings of consolidated subsidiaries; impairment of goodwill; and pre-opening expense. Adjusted EPS represents MedCath's diluted earnings per share from continuing operations for the three months ended September 30, 2009 adjusted for third party payor adjustments, impairment of intangible asset, impairment of goodwill, share-based compensation expense, and pre-opening expense. Free Cash Flows are defined as cash flows from continuing operations less non-expansion capital expenditures. 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. Free Cash Flows are utilized by management to measure the quality of MedCath's earnings. Management provides Adjusted EBITDA, Adjusted EPS, and Free Cash Flows 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, Adjusted EPS, and/or Free Cash Flows as a financial performance measure.

Because Adjusted EBITDA, Adjusted EPS, and Free Cash Flows are non-GAAP measures, Adjusted EBITDA, Adjusted EPS, and Free Cash Flows, 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, Adjusted EPS to diluted EPS from continuing operations, and the computation of Free Cash Flows.

Management will discuss and answer questions regarding MedCath's quarterly results on Thursday, November 12, 2009, during a 10 a.m. ET conference call. In the United States, you may participate by dialing (877) 697-5351. International callers should dial (706) 634-0602. The conference ID for both domestic and international callers is 38797546. A live web cast will also be available on MedCath's web site, www.medcath.com. This information will be available on the web site on or immediately following the conference call for 30 days. A recorded replay of the call will be available until 11:59 p.m. ET, November 26, 2009. To access the replay, domestic callers should dial (800) 642-1687 and international callers should dial (706) 645-9291. The archived conference ID is 38797546. 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 ten hospitals with a total of 825 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, South Dakota, and Texas. In addition, MedCath and its subsidiary MedCath Partners provide services in diagnostic and therapeutic facilities in various states.

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, enactment of changes in federal law that would 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 fourth quarter 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, 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 our filings with the Securities and Exchange Commission, including exhibits, are available at http://www.sec.gov.

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

                                           Three Months          Twelve Months
                                              Ended                 Ended
                                           September 30,         September 30,
                                           --------------       --------------
                                           2009      2008       2009      2008
                                           ----      ----       ----      ----

      Net revenue                      $147,966  $145,511   $602,042  $591,611
      Operating expenses:
        Personnel expense                48,681    49,196    200,927   197,850
        Medical supplies expense         43,336    41,835    171,451   161,880
        Bad debt expense                 14,876    11,828     49,421    43,671
        Other operating expenses         31,857    30,637    127,043   118,378
        Pre-opening expenses              2,223       143      3,563       786
        Depreciation                      8,591     7,623     31,755    30,041
        Amortization                        889        30      1,121        84
        Loss (gain) on disposal of
         property, equipment and
         other assets                       133      (143)       271       248
        Impairment of goodwill           60,174         -     60,174         -
                                         ------      ----     ------      ----
          Total operating expenses      210,760   141,149    645,726   552,938
                                        -------   -------    -------   -------
      (Loss) income from operations     (62,794)    4,362    (43,684)   38,673
      Other income (expenses):
        Interest expense                 (1,452)   (2,642)    (6,798) (14,300)
        Loss on early extinguishment
         of debt                              -         -     (6,702)        -
        Interest and other income            12       100        237     2,029
        Equity in net earnings of
         unconsolidated affiliates        2,013     1,049      9,057     7,891
                                          -----     -----      -----     -----
          Total other income
           (expense), net                   573    (1,493)    (4,206)  (4,380)
                                            ---    ------     ------    ------
      (Loss) income from continuing
        operations before
        minority interest
        and income taxes                (62,221)    2,869    (47,890)   34,293
      Minority interest share of
        earnings of consolidated
        subsidiaries                       (872)   (1,181)    (9,328) (12,546)
                                           ----    ------     ------   -------
      (Loss) income from continuing
       operations before
       income taxes                     (63,093)    1,688    (57,218)   21,747
      Income tax (benefit) expense       (1,193)    1,533      1,200     9,374
                                         ------     -----      -----     -----
      (Loss) income from continuing
       operations                       (61,900)      155    (58,418)   12,373
      Income from discontinued
       operations, net of taxes           3,294       314      8,136     8,617
                                          -----       ---      -----     -----
      Net (loss) income                $(58,606)     $469   $(50,282)  $20,990
                                       ========      ====   ========   =======

      Earnings (loss) per share, basic
         Continuing operations           $(3.14)    $0.01     $(2.96)    $0.62
         Discontinued operations           0.17      0.01       0.41      0.43
                                           ----      ----       ----      ----
         Earnings (loss) per share,
          basic                          $(2.97)    $0.02     $(2.55)    $1.05
                                         ------     -----     ------     -----

      Earnings (loss) per share, diluted
         Continuing operations           $(3.14)    $0.01     $(2.96)    $0.61
         Discontinued operations           0.17      0.01       0.41      0.43
                                           ----      ----       ----      ----
         Earnings (loss) per share,
          diluted                        $(2.97)    $0.02     $(2.55)    $1.04
                                         ------     -----     ------     -----

      Weighted average number of
       shares, basic                     19,740    19,590     19,684    19,996
      Dilutive effect of stock
       options and restricted stock           -        65          -        73
                                            ---        --        ---        --
      Weighted average number of
       shares, diluted                   19,740    19,655     19,684    20,069
                                         ======    ======     ======    ======



                               MEDCATH CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)


                                                  September 30,  September 30,
                                                      2009           2008
                                                  -------------  -------------
                                                   (Unaudited)

      Current assets:
        Cash and cash equivalents                   $32,014        $93,836
        Restricted cash                                   -          3,154
        Accounts receivable, net                     70,410         82,324
        Income tax receivable, net                        -          3,091
        Medical supplies                             18,261         15,340
        Deferred income tax assets                   12,201          9,769
        Prepaid expenses and other
         current assets                              13,969          9,756
        Current assets of
         discontinued operations                     30,011         22,506
                                                     ------         ------
              Total current assets                  176,866        239,776
      Property and equipment, net                   382,684        323,094
      Investments in affiliates                      14,055         15,285
      Goodwill                                            -         60,174
      Other intangible assets, net                      378          1,133
      Other assets                                   16,465          8,378
      Long-term assets of
       discontinued operations                            -          5,616
                                                       ----          -----
          Total assets                             $590,448       $653,456
                                                   ========       ========

      Current liabilities:
        Accounts payable                            $40,979        $41,404
        Income tax payable                              642              -
        Accrued compensation and benefits            18,744         16,744
        Other accrued liabilities                    24,860         23,322
        Current portion of long-term debt and
         obligations under capital leases            21,243         31,920
        Current liabilities of
         discontinued operations                     10,165         11,282
                                                     ------         ------
          Total current liabilities                 116,633        124,672
      Long-term debt                                102,727        115,628
      Obligations under capital leases                3,791          2,087
      Deferred income tax liabilities                13,874         12,352
      Other long-term obligations                     8,893          4,454
                                                      -----          -----
          Total liabilities                         245,918        259,193

      Minority interest in equity of
       consolidated subsidiaries                     25,632         24,667

      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;
         21,697,380 issued and 19,743,019
         outstanding at September 30, 2009;
         21,553,054 issued and 19,598,693
         outstanding at September 30, 2008              216            216
        Paid-in capital                             455,259        455,494
        Accumulated deficit                         (91,420)       (41,138)
        Accumulated other comprehensive loss           (360)          (179)
        Treasury stock, at cost;
        1,954,361 shares at September 30, 2009
        1,954,361 shares at September 30, 2008      (44,797)       (44,797)
                                                    -------        -------
          Total stockholders' equity                318,898        369,596
                                                    -------        -------
          Total liabilities and stockholders'
           equity                                  $590,448       $653,456
                                                   ========       ========



                               MEDCATH CORPORATION
                             SELECTED OPERATING DATA
        (In thousands, except per share data and selected operating data)
                                   (Unaudited)

                            Three Months Ended            Twelve Months Ended
                               September 30,                  September 30,
                         -----------------------       -----------------------
                         2009    2008    % Change     2009    2008    % Change
                         -----------------------       -----------------------

    Statement of
     Operations Data:

    Net revenue      $147,966  $145,511     1.7%  $602,042  $591,611      1.8%
    Adjusted
     EBITDA (1)        $9,538   $11,530   (17.3)%  $55,590   $74,810   (25.7)%
    (Loss) income from
     operations      $(62,794)   $4,362      N/M   $(43,684)  $38,673      N/M
    (Loss) income from
     continuing
     operations      $(61,900)     $155      N/M   $(58,418)  $12,373      N/M
    (Loss) earnings
     per share from
     continuing operations,
      basic            $(3.14)    $0.01      N/M     $(2.96)    $0.62      N/M
    (Loss) earnings
     per share from
     continuing operations,
      diluted          $(3.14)    $0.01      N/M     $(2.96)    $0.61      N/M


    (1)  See Supplemental Financial Disclosure--Reconciliation of GAAP
         Financial Measures to Non-GAAP Financial Measures.
    N/M - Not meaningful




                           Three Months Ended            Twelve Months Ended
                              September 30,                 September 30,
                         -----------------------       -----------------------
                                            %                             %
                         2009      2008   Change       2009      2008   Change
                         -----------------------       -----------------------

    Selected Operating
     Data (a):

    Number of hospitals     7         7                   7         7
    Licensed beds (c)     588       509                 588       509
    Staffed and available
     beds (d)             502       464                 502       464
    Admissions (e)      6,707     6,980   (3.9)%     26,856    29,360   (8.5)%
    Adjusted
     admissions (f)    10,262     9,976    2.9%      40,964    40,971   (0.0)%
    Patient days (g)   24,688    25,500   (3.2)%    103,342   107,353   (3.7)%
    Adjusted patient
     days (h)          37,720    36,776    2.6%     157,638   150,559     4.7%
    Average length of
     stay  (days) (i)    3.68      3.65    0.8%        3.85      3.66     5.2%
    Occupancy (j)        53.5%     59.7%               56.4%     63.4%
    Inpatient
     catheterization
     procedures (k)     3,187     3,735  (14.7)%     13,257    15,979  (17.0)%
    Inpatient surgical
     procedures (l)     2,050     2,050    0.0%       8,181     8,383   (2.4)%
    Hospital net
     revenue         $141,976  $139,487    1.8%    $578,432  $565,787     2.2%

    Combined Operating Data (b):
    Number of hospitals     9         9                   9         9
    Licensed beds (c)     755       676                 755       676
    Staffed and available
     beds (d)             665       629                 665       629
    Admissions (e)      9,143     9,997   (8.5)%     38,055    40,176   (5.3)%
    Adjusted
     admissions (f)    14,323    14,791   (3.2)%     59,168    58,669     0.9%
    Patient days (g)   32,572    34,732   (6.2)%    137,889   141,346   (2.4)%
    Adjusted patient
     days (h)          50,630    51,281   (1.3)%    212,826   205,032     3.8%
    Average length of
     stay (days) (i)     3.56      3.47    2.6%        3.62      3.52     2.8%
    Occupancy (j)        53.2%     60.0%               56.8%     61.6%
    Inpatient catheterization
     procedures (k)     3,801     4,524  (16.0)%     16,230    19,148  (15.2)%
    Inpatient surgical
     procedures (l)     2,625     2,666   (1.5)%      10,573   10,954   (3.5)%
    Hospital net
     revenue         $180,562  $179,296    0.7%     $739,111  $725,188    1.9%
                                                                               (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 MedCath's income from continuing operations
    as derived directly from MedCath's consolidated financial statements to
    Adjusted EBITDA for the three and twelve months ended September 30, 2009
    and 2008.

                                                           Twelve Months
                                 Three Months Ended       Ended September
                                   September 30,               30,
                                 ------------------      ----------------
                                    2009     2008         2009     2008
                                    ----     ----         ----     ----
                                   (in thousands)        (in thousands)

    (Loss) income from continuing
     operations                   $(61,900)    $155  $(58,418) $12,373
    Add:
      Income tax (benefit) expense  (1,193)   1,533     1,200    9,374
      Minority interest share of
       earnings of consolidated
       subsidiaries                    872    1,181     9,328   12,546
      Equity in net earnings of
       unconsolidated affiliates    (2,013)  (1,049)   (9,057)  (7,891)
      Interest and other income        (12)    (100)     (237)  (2,029)
      Loss on early extinguishment
       of debt                           -        -     6,702        -
      Interest expense               1,452    2,642     6,798   14,300
      Impairment of goodwill        60,174        -    60,174        -
      Loss (gain) on disposal of
       property, equipment and
       other assets                    133     (143)      271      248
      Amortization                     889       30     1,121       84
      Depreciation                   8,591    7,623    31,755   30,041
      Pre-opening expenses           2,223      143     3,563      786
      Share-based compensation expense 322     (485)    2,390    4,978
                                       ---     ----     -----    -----
    Adjusted EBITDA                 $9,538  $11,530   $55,590  $74,810
                                    ======  =======   =======  =======


    The following table reconciles MedCath's diluted earnings per share from
    continuing operations as derived directly from MedCath's consolidated
    financial statements to Adjusted EPS from continuing operations for the
    three months ended September 30, 2009 and 2008.

                                                       Twelve Months
                              Three Months Ended      Ended September
                                 September 30,              30,
                             -------------------    -----------------
                                 2009     2008       2009     2008
                                 ----     ----       ----     ----

    Diluted earnings per
     share                       ($3.14)   $0.01    ($2.96)   $0.61
    Add:
      Third party payor
       adjustments                 0.04     0.02      0.12     0.03
      Termination of management
       contract                    0.03        -      0.03        -
      Impairment of goodwill       3.05        -      3.05        -
      Operating expense
       as previously disclosed        -        -      0.28     0.02
      Share-based compensation
       expense                     0.01    (0.01)     0.08     0.14
      Pre-opening expense          0.05        -      0.09     0.02
                                   ----      ---      ----     ----
    Adjusted diluted
     earnings per share           $0.04    $0.02     $0.69    $0.82
                                  =====    =====     =====    =====


    The following table reflects the calculation of adjusted free cash
    flow and adjusted free cash flow per diluted share. Free Cash
    Flows is commonly defined as cash flows from continuing operations
    less capital expenditures.

                                                        Twelve Months
                              Three Months Ended       Ended September
                                 September 30,               30,
                             -------------------     -----------------
                                 2009     2008           2009      2008
                                 ----     ----           ----      ----
                                (in thousands)

     Cash flow from continuing
      operations               $10,722   $9,894       $64,333   $43,190
       Less: Non-expansion
        capital expenditures     6,984    8,022        24,332    24,175
                                 -----    -----        ------    ------
     Free cash flow             $3,738   $1,872       $40,001   $19,015
                                ======   ======       =======   =======



SOURCE MedCath Corporation


'/>"/>
SOURCE MedCath Corporation
Copyright©2009 PR Newswire.
All rights reserved


Related medicine technology :

1. MedCath Corporation to Hold Conference Call on Fourth Quarter Results
2. Webcast Alert: Isis Pharmaceuticals and Genzyme Corporation to Present Mipomersen Phase 3 Data in HoFH During AHA
3. Dr. John Mills and Joseph Gentile Join Board of Directors of ChanTest Corporation
4. Volcano Corporation Presentation at Canaccord Adams Conference to Be Webcast
5. Raptor Pharmaceutical Corporation Announces Presentation of Data for NGX426, a Novel, Non-Opioid Oral Analgesic, at Neuropathic Pain Conference
6. China National Medicines Corporation Issues Milestone Purchase Order for 12,000 STA Systems
7. China Medicine Corporation to Acquire Pharmaceutical Manufacturer in Guangzhou
8. DURECT Corporation Invites You to Join its Third Quarter 2009 Earnings Conference Call
9. Volcano Corporation Schedules Third Quarter Conference Call, Webcast
10. Cephalon Signs Option Agreement to Acquire BioAssets Development Corporation
11. Select Medical Holdings Corporation Announces Exercise of Underwriters Option to Purchase Additional Shares
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/11/2016)... Feb. 11, 2016 Laboratory glassware ... in laboratories. These may range from microscope slides to ... is made from borosilicate glass because of its low ... the other hand, started gaining popularity over the past ... to replace glass with plastic in several applications due ...
(Date:2/11/2016)... , Feb. 11, 2016  Walgreens has committed to ... states and Washington, D.C. as part ... that was commended by shareholder advocacy organization As You Sow. ... You Sow. "Many people hold on to unneeded drugs because ... have tragic consequences." --> Conrad MacKerron , ...
(Date:2/11/2016)... , Feb. 11, 2016   Health 2.0 ... of new health technologies, announced today " 10 Year ... in health tech over the past ten years.   ... nearly a decade, Health 2.0 has served as the ... and connected with thousands of technologies, companies, innovators, and ...
Breaking Medicine Technology:
(Date:2/12/2016)... , ... February 12, 2016 , ... Coco Libre, the ... in Red Carpet Events LA GRAMMY’s Style Lounge Event. Coco Libre will offer musicians ... stay hydrated before the big event. The invitation-only gifting suite, held this year at ...
(Date:2/12/2016)... ... February 12, 2016 , ... The ThedaCare Center ... Francisco General Hospital on April 5-7. The series is a multi-day, multi-workshop event ... The workshops cover a broad range of topics, including coaching skills, the scientific ...
(Date:2/12/2016)... ... February 12, 2016 , ... Every winter, someone is ... winter the West Penn Burn Center, part of the Allegheny Health Network, ... to bring you the “Space Heaters Need Space” campaign. , “Space Heaters ...
(Date:2/12/2016)... ... February 12, 2016 , ... AssureVest Insurance Group, a locally owned insurance ... drive that will raise funds earmarked to purchase computers and software for Mrs. Harrison’s ... “My school is in a low-income area and has more than 60 2nd and ...
(Date:2/12/2016)... ... February 12, 2016 , ... Vail knee specialist Robert LaPrade, MD, PhD ... 2016 . The list consists of physicians establishing, leading and partnering with ambulatory surgery ... , An Ambulatory Surgery Center, also known as an ASC, is a modern health ...
Breaking Medicine News(10 mins):