MedCath Corporation Announces Outlook for 2007
October 26 2006 - 10:30PM
PR Newswire (US)
CHARLOTTE, N.C., Oct 26 /PRNewswire-FirstCall/ -- MedCath
Corporation (MedCath) (NASDAQ:MDTH) announced today its earnings
outlook for fiscal 2007. For fiscal 2007, which ends September 30,
2007, MedCath anticipates that its Net revenue, Adjusted EBITDA,
Income from continuing operations and Recurring capital
expenditures will be within the following range: Net revenue:
$740.0 million $780.0 million Adjusted EBITDA: $108.0 million
$112.0 million Income from continuing operations: $19.0 million
$20.5 million Recurring capital expenditures: $30.0 million $35.0
million MedCath's 2007 outlook includes an interest expense
reduction anticipated to be achieved from the repurchase of
approximately $40.6 million in senior notes with proceeds from the
offering of approximately 1.7 million shares of common stock.
Excluded from the Company's 2007 outlook are non-recurring costs
associated with the senior notes repurchase, including
approximately $4.0 million of premium cost and $1.2 million of
acceleration of deferred financing costs. MedCath's 2007 earnings
outlook also excludes the projected operating results from the
Heart Hospital of Lafayette, as the hospital will be classified as
an asset held for sale effective with the reporting of MedCath's
operating result for the quarter ended September 30, 2006. Use of
Non-GAAP Financial Measures This release contains measures of
MedCath's historical financial performance that are not calculated
and presented in conformity with generally accepted accounting
principles ("GAAP"), including Adjusted EBITDA. Adjusted EBITDA
represents MedCath's income from continuing operations before
interest expense; interest and other income, net; income tax
expense; depreciation; amortization; share-based compensation
expense; gain or loss on disposal of property, equipment and other
assets; impairment of long-lived assets; equity in net earnings of
unconsolidated affiliates; and minority interest. MedCath's
management uses Adjusted EBITDA to measure the performance of the
company's various operating entities, to compare actual results to
historical and budgeted results, and to make capital allocation
decisions. Management provides Adjusted EBITDA to investors to
assist them in performing their analysis 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 as a financial performance
measure. Because Adjusted EBITDA is a non-GAAP measure, Adjusted
EBITDA, as defined above, may not be comparable to other similarly
titled measures of other companies. MedCath Corporation,
headquartered in Charlotte, N.C., is a healthcare provider focused
primarily on the diagnosis and treatment of cardiovascular disease.
MedCath focuses on serving the unique needs of patients suffering
from cardiovascular disease. MedCath owns interests in and operates
eleven hospitals with a total of 667 licensed beds, located in
Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South
Dakota, and Texas. In addition, MedCath manages the cardiovascular
program at various hospitals operated by other parties. Further,
MedCath provides cardiovascular care services in diagnostic and
therapeutic facilities located 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. 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. These various risks and
uncertainties are described in detail in "Risk Factors" in
MedCath's Amendment No. 1 to Form S-3 filed with the Securities and
Exchange Commission on October 26, 2006. A copy of this report is
available on the internet site of the Securities and Exchange
Commission at http://www.sec.gov/ . DATASOURCE: MedCath Corporation
CONTACT: O. Edwin French, President & Chief Executive Officer,
+1-704-708-6600, or James E. Harris, Chief Financial Officer,
+1-704-708-6600, both of MedCath Corporation Web site:
http://www.medcath.com/
Copyright
Medcath (NASDAQ:MDTH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Medcath (NASDAQ:MDTH)
Historical Stock Chart
From Jul 2023 to Jul 2024