CHARLOTTE, N.C., Feb. 8 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH), a healthcare provider focused primarily
on the diagnosis and treatment of cardiovascular disease, today
announced operating results for its first fiscal quarter ended
December 31, 2006. First quarter highlights: -- Net revenue
increased 7.3% to $175.5 million during the first quarter. --
Adjusted EBITDA for the first quarter totaled $20.9 million, which
includes the negative impact of a $2.7 million reserve established
at one hospital to cover potential repayment of Medicare
reimbursement. -- Adjusted admissions increased 3.5% for the
quarter. First Quarter 2007 Results MedCath's net revenue increased
7.3% to $175.5 million in the first quarter of fiscal 2007 from
$163.6 million in the first quarter of fiscal 2006. Income from
operations was $10.7 million in the first quarter of fiscal 2007,
compared to income from operations of $7.2 million in the first
quarter of fiscal 2006. Adjusted EBITDA in the first quarter of
fiscal 2007 increased 26.9% to $20.9 million from $16.5 million in
the first quarter of fiscal 2006. Income from continuing operations
was $254,000, or $0.01 per diluted share, in the first quarter of
fiscal 2007, compared to a loss from continuing operations of
$(1.3) million, or $(0.07) per diluted share, in the first quarter
of fiscal 2006. Earlier this fiscal year, MedCath announced its
intention to divest its ownership interest in one hospital. The
operating results of this hospital are included in the Company's
results from discontinued operations. During the first fiscal
quarter of 2007, loss from discontinued operations totaled $(5.2)
million, or $(0.25) per share, compared to a loss of $(68,000) in
first quarter of fiscal 2006, or $0.00 per share. The fiscal first
quarter of 2007 loss from discontinued operations includes the
impact of $(4.1) million, or $(0.23) per share, in impairment
expense. MedCath's first quarter 2007 results from continuing
operations contain the following unusual items. Per share amounts
reflect minority interest expense, where applicable, and income
taxes: -- A $2.7 million, or a net impact of $0.05 per diluted
share, reduction in net revenue and Adjusted EBITDA to establish a
reserve for repayment of a portion of Medicare reimbursement
related to hospital inpatient services provided to patients
enrolled in a clinical trial conducted at one of our hospitals
between 1998 and 2002 that is under investigation by the U.S.
Department of Justice, and -- A $4.5 million, or a net impact of
$0.13 per diluted share, loss on early extinguishment of debt. This
loss was comprised of a $3.5 million premium related to the
repurchase of $36.2 million of our senior notes and approximately
$1.0 million related to the acceleration of deferred loan fees. In
comparison, MedCath's first quarter of fiscal 2006 financial
results were impacted by certain items that collectively had a $2.3
million unfavorable impact to Adjusted EBITDA and a $1.7 million
unfavorable impact to income from continuing operations, or a net
impact of $0.09 per diluted share. Share-based compensation expense
totaled $1.0 million in the first quarter of fiscal 2007, compared
to $418,000 in the first quarter of 2006. Adjusted EBITDA disclosed
above does not include this expense, but the expense is included as
a component of income from continuing operations. "During the
quarter, we continued in our efforts to establish operating
processes and resources that will allow us to reach our goal of
achieving a 16% Adjusted EBITDA margin by fiscal year end 2009,"
said Ed French, MedCath's president and chief executive officer.
"By intention, our operating improvement efforts so far have
focused on supply and revenue cycle management. Additional
objectives this year will concentrate on resource utilization
across our system as we strive to meet our margin objectives."
Operating Statistics Hospital admissions for the first quarter of
fiscal 2007 were down by (1.8)% compared to prior year and adjusted
admissions rose 3.5% from the first quarter of the previous fiscal
year. Same facility hospital net revenue increased 8.8%, excluding
the unusual items reported earlier in this release, while same
facility inpatient catheterization procedures decreased (1.6)% and
inpatient surgical procedures remained unchanged compared to last
year. 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 (loss) from continuing
operations before interest expense; loss on early extinguishment of
debt; interest and other income, net; income tax expense (benefit);
depreciation; amortization; share- based compensation expense; loss
on disposal of property, equipment and other assets; equity in net
earnings of unconsolidated affiliates; and minority interest share
of earnings of consolidated subsidiaries. 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 has included a
supplemental schedule that accompanies this press release that
reconciles Adjusted EBITDA to MedCath's income (loss) from
continuing operations. Earnings Conference Call and Web Cast
Management will discuss and answer questions regarding MedCath's
quarterly results Thursday, Feb. 8, 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
"MedCath". A live webcast will also be available on the company's
web site, http://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, Feb. 15, 2007. To access the replay,
domestic callers should dial (800) 642-1687 and international
callers should dial (706) 645-9291. The archived conference ID is
6870742. This press release and the financial information included
therewith will be accessible on the web, by going to
http://www.medcath.com/, "Investor Relations", then clicking on
"News". 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 under the heading "Risk
Factors" in the Company's Annual Report on Form 10-K, which was
filed with the Securities and Exchange Commission on December 14,
2006. A copy of the report, including exhibits, is available on the
Internet site of the Commission at http://www.sec.gov/. MEDCATH
CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except per share data) (Unaudited) Three Months Ended December 31,
2006 2005 Net revenue $175,549 $163,613 Operating expenses:
Personnel expense 57,175 52,493 Medical supplies expense 48,170
46,194 Bad debt expense 13,831 13,055 Other operating expenses
36,465 35,789 Depreciation 8,869 8,557 Amortization 252 252 Loss on
disposal of property, equipment and other assets 57 97 Total
operating expenses 164,819 156,437 Income from operations 10,730
7,176 Other income (expenses): Interest expense (7,458) (7,921)
Loss on early extinguishment of debt (4,480) (1,006) Interest and
other income, net 2,725 1,397 Equity in net earnings of
unconsolidated affiliates 1,438 1,065 Total other expenses, net
(7,775) (6,465) Income from continuing operations before minority
interest, income taxes and discontinued operations 2,955 711
Minority interest share of earnings of consolidated subsidiaries
(2,480) (2,818) Income (loss) from continuing operations before
income taxes and discontinued operations 475 (2,107) Income tax
expense (benefit) 221 (842) Income (loss) from continuing
operations 254 (1,265) Loss from discontinued operations, net of
taxes (5,150) (68) Net loss $(4,896) $(1,333) Earnings (loss) per
share, basic Continuing operations $0.01 $(0.07) Discontinued
operations (0.25) - Loss per share, basic $(0.24) $(0.07) Earnings
(loss) per share, diluted Continuing operations $0.01 $(0.07)
Discontinued operations (0.25) - Loss per share, diluted $(0.24)
$(0.07) Weighted average number of shares, basic 20,121 18,501
Dilutive effect of stock options and restricted stock - - Weighted
average number of shares, diluted 20,121 18,501 MEDCATH CORPORATION
SELECTED OPERATING DATA (In thousands, except per share data and
selected operating data) (Unaudited) Three Months Ended December
31, 2006 2005 % Change Statement of Operations Data: Net revenue
$175,549 $163,613 7.3% Adjusted EBITDA (1) $20,934 $16,500 26.9%
Income from operations $10,730 $7,176 49.5% Income (loss) from
continuing operations $254 $(1,265) 120.1% Earnings per share from
continuing operations, basic $0.01 $(0.07) 114.3% Earnings per
share from continuing operations, diluted $0.01 $(0.07) 114.3%
(1)See Supplemental Financial Disclosure--Reconciliation of GAAP
Financial Measures to Non-GAAP Financial Measures. Three Months
Ended December 31, 2006 2005 % Change Selected Operating Data ( a
): Number of hospitals 9 9 Licensed beds ( b ) 580 580 Staffed and
available beds ( c ) 563 578 Admissions ( d ) 9,730 9,905 (1.8)%
Adjusted admissions ( e ) 13,345 12,899 3.5 % Patient days ( f )
34,089 33,282 2.4 % Adjusted patient days ( g ) 46,520 43,215 7.6 %
Average length of stay (days) ( h ) 3.50 3.36 4.2 % Occupancy ( i )
65.8 % 62.6 % Inpatient catheterization procedures 4,858 4,935
(1.6)% Inpatient surgical procedures 2,516 2,517 (0.0)% Hospital
net revenue $161,058 $149,414 7.8 % (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)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. (c)Staffed and
available beds represent the number of beds that are readily
available for patient use at the end of the period. (d)Admissions
represent the number of patients admitted for inpatient treatment.
(e)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. (f)Patient days represent
the total number of days of care provided to inpatients.
(g)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. (h)Average length of stay
(days) represents the average number of days inpatients stay in our
hospitals. (i)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. MEDCATH CORPORATION
SUPPLEMENTAL FINANCIAL DISCLOSURE - RECONCILIATION OF GAAP
FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (Unaudited) The
following table reconciles Adjusted EBITDA with MedCath's income
(loss) from continuing operations as derived directly from
MedCath's consolidated financial statements for the three months
ended December 31, 2006 and 2005. Three Months Ended December 31,
2006 2005 (in thousands) Income (loss) from continuing operations
$254 $(1,265) Add: Income tax expense (benefit) 221 (842) Minority
interest share of earnings of consolidated subsidiaries 2,480 2,818
Equity in net earnings of unconsolidated affiliates (1,438) (1,065)
Interest and other income, net (2,725) (1,397) Interest expense
7,458 7,921 Loss on early extinguishment of debt 4,480 1,006 Loss
on disposal of property, equipment and other assets 57 97
Amortization 252 252 Depreciation 8,869 8,557 Share-based
compensation expense 1,026 418 Adjusted EBITDA $20,934 $16,500
DATASOURCE: MedCath Corporation CONTACT: O. Edwin French, President
and Chief Executive Officer, 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