CHARLOTTE, N.C., May 5 /PRNewswire-FirstCall/ -- MedCath
Corporation (Nasdaq: MDTH), a healthcare provider focused on high
acuity healthcare services, today announced operating results
for its second quarter of fiscal 2010 which ended March 31, 2010.
Highlights
- Net revenue of $134.9 million, up
3.2% compared to second quarter of fiscal 2009 and up 8.7% compared
to first quarter of fiscal 2010.
- Total admissions increase of 7.3% and adjusted admissions
increase of 12.2% compared to second quarter of fiscal 2009 and
total admissions increase of 7.9% and adjusted admissions increase
of 12.4% compared to the first quarter of fiscal 2010.
- Same facility hospital adjusted admissions up 2.8% compared to
second quarter of fiscal 2009; and up 8.6% compared to first
quarter of fiscal 2010.
- Adjusted EBITDA of $11.2 million
and same facility Adjusted EBITDA of $13.1
million for the second fiscal quarter of 2010. Same facility
Adjusted EBITDA excludes the operations of Hualapai Mountain
Medical Center, MedCath’s newest hospital that opened in
October 2009.
- Operating cash flow from continuing operations of $13.9 million compared to $14.9 million in the second quarter of fiscal
2009 and $1.2 million in the first
quarter of fiscal 2010.
- EPS from continuing operations of $(0.59) and Adjusted EPS from continuing
operations of $0.10, excluding
non-cash impairment expense, share-based compensation expense and a
loss on a note receivable.
Commenting on the results, Ed
French, MedCath’s president and chief executive officer,
said, “We are pleased with the financial results for our second
quarter in terms of volume growth in comparison to the prior year
and our first quarter. Our Adjusted EBITDA and Adjusted EBITDA
margin improved significantly from our first quarter to our second
quarter in fiscal 2010. We remain committed to maintaining
our focus on our hospitals’ operations as we pursue our strategic
plans announced in March to explore the sale of MedCath, the
individual assets or our interest in the individual assets.”
Second Quarter of Fiscal 2010 Results compared to First
Quarter of Fiscal 2010 Results
MedCath’s reported net revenue increased 8.7% to $134.9 million in the second quarter of fiscal
2010 compared to $124.1 million in
the first quarter of fiscal 2010. Same facility net revenue for
second quarter of fiscal 2010, which excludes the results of
Hualapai Mountain Medical Center, totaled $127.7 million compared to $119.5 million in the first quarter of fiscal
2010. Income from operations decreased to a loss of
$(17.2) million in the second quarter
of fiscal 2010 from $(4.8) million in
the first quarter of fiscal 2010. MedCath’s (loss) income
from continuing operations was $(11.6)
million, or $(0.59) per
diluted share, in the second quarter of fiscal 2010 compared to
$(3.2) million, or $(0.16) per diluted share, in the first quarter
of fiscal 2010. MedCath’s second quarter of fiscal 2010 financial
results include a $19.5 million
non-cash fixed asset impairment charge, and a $1.5 million loss on note receivable.
Adjusted EBITDA for the second quarter of fiscal 2010 was
$11.2 million in the second quarter
of fiscal 2010 compared to $4.4
million in the first quarter of 2010 while same facility
Adjusted EBITDA for the second quarter of fiscal 2010 totaled
$13.1 million compared to
$6.8 million in the first quarter of
fiscal 2010. Adjusted EBITDA excludes impairment expense,
share-based compensation, pre-opening expenses and a loss due to
the write-down of a note receivable, but these items are included
as a component of income from continuing operations. Share-based
compensation expense totaled $1.2
million in the second quarter of fiscal 2010, or
$0.04 per diluted share, compared to
$0.6 million expense, or $0.02 per diluted share, in the first quarter of
fiscal 2010. MedCath incurred no pre-opening expenses in the
second quarter of fiscal 2010, compared to pre-opening expenses of
$0.9 million, or $0.03 per diluted share, in the first quarter of
fiscal 2010. Impairment expense totaled $19.5 million in the second quarter of fiscal
2010, or $0.60 per diluted share,
while there was no similar impairment expense in the first quarter
of fiscal 2010. Loss on a note receivable totaled $1.5 million in the second quarter of fiscal
2010, or $0.05 per diluted share,
while there was no loss on the note receivable in the first quarter
of fiscal 2010. Excluding these items, MedCath’s Adjusted EPS for
the second quarter of fiscal 2010 was $0.10 compared to $(0.11) in first quarter of fiscal 2010.
Second Quarter of Fiscal 2010 Results Compared to Second
Quarter of Fiscal 2009 Results
MedCath’s reported net revenue increased 3.2% to $134.9 million in the second quarter of fiscal
2010 compared to $130.8 million in
the second quarter of fiscal 2009. Same facility net revenue
for second quarter of fiscal 2010, which excludes the results of
Hualapai Mountain Medical Center, totaled $127.7 million compared to $130.8 million in the second quarter of fiscal
2009. Income from operations decreased to a loss of
$(17.2) million in the second quarter
of fiscal 2010 from $8.1 million in
the second quarter of fiscal 2009. MedCath’s (loss) income from
continuing operations was $(11.6)
million, or $(0.59) per
diluted share, in the second quarter of fiscal 2010 compared to
$4.2 million, or $0.21 per diluted share, in the second quarter of
fiscal 2009. MedCath’s second quarter of fiscal 2010 financial
results include a $19.5 million
non-cash fixed asset impairment charge, and a $1.5 million loss on note receivable. There
were no similar impairment charges or loss on note receivable in
the second quarter of fiscal 2009. Share-based compensation
expense totaled $1.2 million in the
second quarter of fiscal 2010, or $0.04 per diluted share, compared to a
$0.8 million expense, or $0.03 per diluted share, in the second quarter of
fiscal 2009. MedCath incurred no pre-opening expenses in the
second quarter of fiscal 2010, compared to pre-opening expenses of
$0.4 million, or $0.01 per diluted share, in the second quarter of
fiscal 2009.
Excluding these items, Adjusted EBITDA was $11.2 million in the second quarter of fiscal
2010 compared to $15.7 million in the
same period of the prior year. MedCath’s Adjusted EPS for the
second quarter of fiscal 2010 was $0.10 compared to $0.25 in second quarter of fiscal 2009.
Operating Statistics, Cash Flow and Capital
Expenditures
MedCath’s financial results for the fiscal quarter ended
March 31, 2010, reflect a 7.3%
increase in total admissions and a 12.2% increase in adjusted
admissions compared to the second quarter of fiscal 2009. Same
facility hospital admissions in the second quarter of fiscal 2010
were 6,191, down 0.1% compared with the second quarter of fiscal
2009. Same facility hospital adjusted admissions totaled 9,058, up
2.8% compared to the second quarter of fiscal 2009. Same facility
hospital outpatient cases totaled 14,362 in the second quarter of
fiscal 2010, up 10.9% in comparison to the second quarter of fiscal
2009.
Compared to first quarter of fiscal 2010, MedCath’s total
admissions in the second quarter of fiscal 2010 increased 7.9% and
adjusted admissions increased 12.4%. Same facility hospital
admissions increased 4.3%, same facility adjusted admissions
increased 8.6% and same facility outpatient cases rose 11.4% over
the same period.
Total uncompensated care, which includes charity care plus bad
debt expense, equaled 10.5% of hospital division net patient
revenue before the deduction for charity care in the second quarter
of fiscal 2010 compared to 8.2% in the second quarter of fiscal
2009 and 10.7% in the first quarter of 2010.
Net cash provided by operating activities from continuing
operations for the second quarter of fiscal 2010 was $13.9 million compared to $14.9 million in the second quarter of fiscal
2009 and $1.2 million in the first
quarter of fiscal 2010. Cash paid for capital expenditures
during the second quarter of fiscal 2010 totaled $6.5 million, which included $2.7 million related to maintenance expenditures
and $3.8 million related to MedCath’s
construction projects.
Impairment and Other Expense
MedCath’s second quarter of fiscal 2010 results include a
$19.5 million non-cash
impairment charge primarily related to the reduction in the
carrying value of long-lived assets at two hospitals. As required
by generally accepted accounting principles, MedCath evaluates the
carrying value of its assets periodically to determine if the
carrying value exceeds the assets’ fair value. As a result of this
evaluation and sustained operating losses incurred at the
hospitals, MedCath determined that an impairment charge was
necessary to reflect the fair value of each of the two hospital’s
long-lived assets. The non-cash impairment charge did not affect
MedCath’s business operations, cash flow, cash position or access
to its bank facility. However, the impairment charge reduced income
from continuing operations by $19.5 million and earnings per diluted share
by $0.60 in the second quarter of
fiscal 2010. Also, MedCath’s operating results for the second
quarter of fiscal 2010 reflect $1.5
million, or $0.05 per diluted
share, in other expense related to the write-down of a note
receivable owed to MedCath from a third-party that MedCath
determined to be uncollectable.
Use of Non-GAAP Financial Measures
Included in this press release and the supplemental financial
information furnished herewith are certain financial measures that
are not calculated and presented in conformity with generally
accepted accounting principles (“non-GAAP measures”), such as
Adjusted earnings before interest, taxes, depreciation, and
amortization (“Adjusted EBITDA”) and Adjusted diluted earnings per
share from continuing operations (“Adjusted EPS”). 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; (gain) loss on disposal of
property, equipment and other assets; interest and other income;
equity in net earnings of unconsolidated affiliates; net income
attributable to noncontrolling interests; impairment of property
and equipment, loss on note receivable, and pre-opening expenses.
Adjusted EPS represents MedCath’s diluted (loss) earnings per share
from continuing operations for the fiscal quarter ended
March 31, 2010 adjusted for
share-based compensation expense, loss on early extinguishment of
debt, impairment of property and equipment, loss on note
receivable, and pre-opening expenses. 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.
Management provides Adjusted EBITDA and Adjusted EPS 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 and/or Adjusted EPS as a
financial performance measure. Because Adjusted EBITDA and
Adjusted EPS are non-GAAP measures, Adjusted EBITDA and Adjusted
EPS, 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 and Adjusted
EPS to diluted EPS from continuing operations.
Management will discuss and answer questions regarding MedCath’s
quarterly results on Thursday, May 6,
2010, 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 70550151. A live web cast will also
be available on the company’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, May 20, 2010. To
access the replay, domestic callers should dial (800) 642-1687 and
international callers should dial (706) 645-9291. The
archived conference ID is 70550151. 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, including those relating to
the potential sale of MedCath or its individual assets. 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 second quarter of fiscal 2010 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, 2009 filed with
the Securities and Exchange Commission on December 14, 2009, as updated in our Quarterly
Report on Form 10-Q for the fiscal quarter ended December 31, 2009 and our subsequent filings with
the Securities and Exchange Commission. 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 Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
134,909
|
|
$
130,767
|
|
$
258,967
|
|
$
256,822
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Personnel expense
|
|
46,444
|
|
44,662
|
|
91,508
|
|
88,029
|
|
|
Medical supplies expense
|
|
36,849
|
|
35,120
|
|
71,747
|
|
69,357
|
|
|
Bad debt expense
|
|
11,918
|
|
8,798
|
|
22,599
|
|
18,392
|
|
|
Other operating expenses
|
|
29,743
|
|
27,342
|
|
59,355
|
|
54,502
|
|
|
Pre-opening expenses
|
|
-
|
|
380
|
|
866
|
|
587
|
|
|
Depreciation
|
|
7,768
|
|
6,217
|
|
15,418
|
|
12,713
|
|
|
Amortization
|
|
8
|
|
8
|
|
16
|
|
16
|
|
|
Impairment of property and
equipment
|
|
19,462
|
|
-
|
|
19,462
|
|
-
|
|
|
(Gain) loss on disposal of
property,
equipment and other assets
|
|
(76)
|
|
108
|
|
19
|
|
181
|
|
|
Total operating
expenses
|
|
152,116
|
|
122,635
|
|
280,990
|
|
243,777
|
|
|
(Loss) income from
operations
|
|
(17,207)
|
|
8,132
|
|
(22,023)
|
|
13,045
|
|
|
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,149)
|
|
(581)
|
|
(2,207)
|
|
(2,678)
|
|
|
Loss on early extinguishment of
debt
|
|
-
|
|
259
|
|
-
|
|
(6,702)
|
|
|
Interest and other income
|
|
23
|
|
73
|
|
93
|
|
172
|
|
|
Loss on note receivable
|
|
(1,507)
|
|
-
|
|
(1,507)
|
|
-
|
|
|
Equity in net earnings of
unconsolidated affiliates
|
|
3,206
|
|
2,714
|
|
4,722
|
|
4,779
|
|
|
Total other income
(expense), net
|
|
573
|
|
2,465
|
|
1,101
|
|
(4,429)
|
|
|
(Loss) income from continuing
operations
before income taxes
|
|
(16,634)
|
|
10,597
|
|
(20,922)
|
|
8,616
|
|
|
Income tax (benefit)
expense
|
|
(7,155)
|
|
2,610
|
|
(9,057)
|
|
1,115
|
|
|
(Loss) income from continuing
operations
|
|
(9,479)
|
|
7,987
|
|
(11,865)
|
|
7,501
|
|
|
Income from discontinued operations,
net of
taxes
|
|
1,163
|
|
2,060
|
|
1,733
|
|
7,915
|
|
|
Net (loss) income
|
|
(8,316)
|
|
10,047
|
|
(10,132)
|
|
15,416
|
|
|
Less: Net income attributable
to
noncontrolling interest
|
|
(2,524)
|
|
(4,465)
|
|
(3,364)
|
|
(7,588)
|
|
|
Net (loss) income attributable to
MedCath
Corporation
|
|
$
(10,840)
|
|
$
5,582
|
|
$
(13,496)
|
|
$
7,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
MedCath
Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing
operations, net of taxes
|
|
$
(11,630)
|
|
$
4,220
|
|
$
(14,721)
|
|
$
1,685
|
|
|
Income from discontinued
operations,
net of taxes
|
|
790
|
|
1,362
|
|
1,225
|
|
6,143
|
|
|
Net (loss) income
|
|
$
(10,840)
|
|
$
5,582
|
|
$
(13,496)
|
|
$
7,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share,
basic
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing
operations attributable to MedCath
Corporation common stockholders
|
|
$
(0.59)
|
|
$
0.21
|
|
$
(0.74)
|
|
$
0.09
|
|
|
Income from discontinued
operations
attributable to MedCath Corporation
common stockholders
|
|
0.04
|
|
0.07
|
|
0.06
|
|
0.31
|
|
|
(Loss) earnings per share,
basic
|
|
$
(0.55)
|
|
$
0.28
|
|
$
(0.68)
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share,
diluted
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing
operations
attributable to MedCath Corporation
common stockholders
|
|
$
(0.59)
|
|
$
0.21
|
|
$
(0.74)
|
|
$
0.09
|
|
|
Income from discontinued
operations
attributable to MedCath Corporation
common stockholders
|
|
0.04
|
|
0.07
|
|
0.06
|
|
0.31
|
|
|
(Loss) earnings per share,
diluted
|
|
$
(0.55)
|
|
$
0.28
|
|
$
(0.68)
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares,
basic
|
|
19,829
|
|
19,664
|
|
19,786
|
|
19,631
|
|
|
Dilutive effect of stock options and
restricted
stock
|
|
-
|
|
26
|
|
-
|
|
-
|
|
|
Weighted average number of shares,
diluted
|
|
19,829
|
|
19,690
|
|
19,786
|
|
19,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDCATH
CORPORATION
CONSOLIDATED BALANCE
SHEETS
(In
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
September
30,
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
26,113
|
|
$
31,883
|
|
|
Accounts receivable, net
|
64,375
|
|
58,913
|
|
|
Income tax receivable
|
699
|
|
-
|
|
|
Medical supplies
|
15,779
|
|
15,459
|
|
|
Deferred income tax assets
|
11,783
|
|
12,161
|
|
|
Prepaid expenses and other current
assets
|
15,016
|
|
13,471
|
|
|
Current assets of discontinued
operations
|
25,071
|
|
44,978
|
|
|
Total
current assets
|
158,836
|
|
176,865
|
|
|
Property and equipment, net
|
320,966
|
|
341,394
|
|
|
Investments in affiliates
|
9,773
|
|
14,055
|
|
|
Other assets
|
7,449
|
|
10,785
|
|
|
Non-current assets of discontinued
operations
|
46,762
|
|
47,349
|
|
|
|
Total assets
|
$
543,786
|
|
$
590,448
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
$
36,221
|
|
$
35,920
|
|
|
Income tax payable
|
-
|
|
297
|
|
|
Accrued compensation and
benefits
|
18,505
|
|
16,118
|
|
|
Other accrued liabilities
|
17,253
|
|
23,277
|
|
|
Current portion of long-term debt and
obligations
|
|
|
|
|
|
under capital leases
|
18,081
|
|
21,187
|
|
|
Current liabilities of discontinued
operations
|
17,498
|
|
19,832
|
|
|
|
Total current liabilities
|
107,558
|
|
116,631
|
|
|
Long-term debt
|
60,000
|
|
66,563
|
|
|
Obligations under capital
leases
|
8,527
|
|
4,596
|
|
|
Deferred income tax
liabilities
|
6,469
|
|
13,874
|
|
|
Other long-term obligations
|
5,660
|
|
8,533
|
|
|
Long-term liabilities of discontinued
operations
|
36,020
|
|
35,721
|
|
|
|
Total liabilities
|
224,234
|
|
245,918
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling
interest
|
5,162
|
|
7,448
|
|
|
|
|
|
|
|
|
|
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;
|
|
|
|
|
22,477,039 issued and 20,522,678
outstanding at March 31, 2010;
|
|
|
|
22,104,917 issued and 20,150,556
outstanding at September 30, 2009
|
216
|
|
216
|
|
|
Paid-in capital
|
456,523
|
|
455,259
|
|
|
Accumulated deficit
|
(104,916)
|
|
(91,420)
|
|
|
Accumulated other comprehensive
loss
|
(328)
|
|
(360)
|
|
|
Treasury stock, at cost;
|
|
|
|
|
|
1,954,361 shares at March 31,
2010
|
|
|
|
|
|
1,954,361 shares at September 30,
2009
|
(44,797)
|
|
(44,797)
|
|
|
|
Total MedCath Corporation
stockholders' equity
|
306,698
|
|
318,898
|
|
|
Noncontrolling interest
|
7,692
|
|
18,184
|
|
|
Total
equity
|
314,390
|
|
337,082
|
|
|
|
Total liabilities and
equity
|
$
543,786
|
|
$
590,448
|
|
|
|
|
|
|
|
|
|
|
MEDCATH
CORPORATION
|
|
|
SELECTED OPERATING
DATA
|
|
|
(In thousands,
except per share data and selected operating data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
2010
|
|
2009
|
|
%
Change
|
|
2010
|
|
2009
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Operations
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$
134,909
|
|
$
130,767
|
|
3.2%
|
|
$
258,967
|
|
$
256,822
|
|
0.8%
|
|
|
Adjusted EBITDA (1)
|
$
11,172
|
|
$
15,684
|
|
(28.8)%
|
|
$
15,584
|
|
$
28,379
|
|
(45.1)%
|
|
|
(Loss) income from
operations
|
$
(17,207)
|
|
$
8,132
|
|
(311.6)%
|
|
$
(22,023)
|
|
$
13,045
|
|
(268.8)%
|
|
|
(Loss) income from continuing
operations, net of taxes
|
$
(11,630)
|
|
$
4,220
|
|
(375.6)%
|
|
$
(14,721)
|
|
$
1,685
|
|
(973.6)%
|
|
|
(Loss) income per share from
continuing operations, basic
|
$
(0.59)
|
|
$
0.21
|
|
(381.0)%
|
|
$
(0.74)
|
|
$
0.09
|
|
(922.2)%
|
|
|
(Loss) income per share from
continuing operations, diluted
|
$
(0.59)
|
|
$
0.21
|
|
(381.0)%
|
|
$
(0.74)
|
|
$
0.09
|
|
(922.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Supplemental Financial
Disclosure-Reconciliation of GAAP Financial Measures to Non-GAAP
Financial Measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
|
2010
|
|
2009
|
|
%
Change
|
|
2010
Same Facility
|
|
%
Change
|
|
2010
|
|
2009
|
|
%
Change
|
|
2010
Same Facility
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Data
(a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals
|
7
|
|
6
|
|
|
|
6
|
|
|
|
7
|
|
6
|
|
|
|
6
|
|
|
|
|
Licensed beds ( c )
|
600
|
|
451
|
|
|
|
530
|
|
|
|
600
|
|
451
|
|
|
|
530
|
|
|
|
|
Staffed and available beds ( d
)
|
514
|
|
404
|
|
|
|
444
|
|
|
|
514
|
|
404
|
|
|
|
444
|
|
|
|
|
Admissions ( e )
|
6,650
|
|
6,199
|
|
7.3%
|
|
6,191
|
|
(0.1)%
|
|
12,813
|
|
12,230
|
|
4.8%
|
|
12,127
|
|
(0.8)%
|
|
|
Adjusted admissions ( f )
|
9,884
|
|
8,812
|
|
12.2%
|
|
9,058
|
|
2.8%
|
|
18,685
|
|
16,983
|
|
10.0%
|
|
17,405
|
|
2.5%
|
|
|
Patient days ( g )
|
25,368
|
|
24,810
|
|
2.2%
|
|
23,531
|
|
(5.2)%
|
|
48,252
|
|
47,039
|
|
2.6%
|
|
45,488
|
|
(3.3)%
|
|
|
Adjusted patient days ( h )
|
37,156
|
|
34,941
|
|
6.3%
|
|
33,940
|
|
(2.9)%
|
|
70,521
|
|
65,452
|
|
7.7%
|
|
65,518
|
|
0.1%
|
|
|
Average length of stay (days) ( i
)
|
3.81
|
|
4.00
|
|
(4.8)%
|
|
3.80
|
|
(5.0)%
|
|
3.77
|
|
3.85
|
|
(2.1)%
|
|
3.75
|
|
(2.6)%
|
|
|
Occupancy ( j )
|
54.8%
|
|
68.2%
|
|
|
|
58.9%
|
|
|
|
51.6%
|
|
64.0%
|
|
|
|
56.3%
|
|
|
|
|
Inpatient catheterization procedures (
k )
|
3,028
|
|
3,077
|
|
(1.6)%
|
|
2,940
|
|
(4.5)%
|
|
5,845
|
|
6,229
|
|
(6.2)%
|
|
5,714
|
|
(8.3)%
|
|
|
Inpatient surgical procedures ( l
)
|
1,876
|
|
1,842
|
|
1.8%
|
|
1,786
|
|
(3.0)%
|
|
3,598
|
|
3,576
|
|
0.6%
|
|
3,468
|
|
(3.0)%
|
|
|
Hospital net revenue
|
$
130,645
|
|
$
125,652
|
|
4.0%
|
|
$
123,386
|
|
(1.8)%
|
|
$
249,789
|
|
$
245,687
|
|
1.7%
|
|
$
237,938
|
|
(3.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined Operating Data
(b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals
|
9
|
|
8
|
|
|
|
8
|
|
|
|
9
|
|
8
|
|
|
|
8
|
|
|
|
|
Licensed beds ( c )
|
767
|
|
618
|
|
|
|
697
|
|
|
|
767
|
|
618
|
|
|
|
697
|
|
|
|
|
Staffed and available beds ( d
)
|
677
|
|
567
|
|
|
|
607
|
|
|
|
677
|
|
567
|
|
|
|
607
|
|
|
|
|
Admissions ( e )
|
9,410
|
|
9,125
|
|
3.1%
|
|
8,951
|
|
(1.9)%
|
|
18,055
|
|
18,162
|
|
(0.6)%
|
|
17,369
|
|
(4.4)%
|
|
|
Adjusted admissions ( f )
|
14,591
|
|
13,507
|
|
8.0%
|
|
13,765
|
|
1.9%
|
|
27,520
|
|
26,424
|
|
4.1%
|
|
26,240
|
|
(0.7)%
|
|
|
Patient days ( g )
|
34,276
|
|
34,070
|
|
0.6%
|
|
32,439
|
|
(4.8)%
|
|
64,976
|
|
65,304
|
|
(0.5)%
|
|
62,212
|
|
(4.7)%
|
|
|
Adjusted patient days ( h )
|
51,958
|
|
49,470
|
|
5.0%
|
|
48,742
|
|
(1.5)%
|
|
98,192
|
|
94,091
|
|
4.4%
|
|
93,190
|
|
(1.0)%
|
|
|
Average length of stay (days) ( i
)
|
3.64
|
|
3.73
|
|
(2.4)%
|
|
3.62
|
|
(2.9)%
|
|
3.60
|
|
3.60
|
|
0.0%
|
|
3.58
|
|
(0.6)%
|
|
|
Occupancy ( j )
|
56.3%
|
|
66.8%
|
|
|
|
59.4%
|
|
|
|
52.7%
|
|
63.3%
|
|
|
|
56.3%
|
|
|
|
|
Inpatient catheterization procedures (
k )
|
3,748
|
|
3,883
|
|
(3.5)%
|
|
3,660
|
|
(5.7)%
|
|
7,256
|
|
7,868
|
|
(7.8)%
|
|
7,125
|
|
(9.4)%
|
|
|
Inpatient surgical procedures ( l
)
|
2,435
|
|
2,475
|
|
(1.6)%
|
|
2,345
|
|
(5.3)%
|
|
4,698
|
|
4,821
|
|
(2.6)%
|
|
4,568
|
|
(5.2)%
|
|
|
Hospital net revenue
|
$
172,897
|
|
$
166,552
|
|
3.8%
|
|
$
165,638
|
|
(0.5)%
|
|
$
332,035
|
|
$
327,386
|
|
1.4%
|
|
$
320,184
|
|
(2.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. Same
facility excludes the results of Hualapai Mountain Medical
Center.
|
|
|
(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 the
loss from continuing operations, net of taxes attributable to
MedCath Corporation's common stockholders as derived directly from
MedCath Corporation's consolidated financial statements to Adjusted
EBITDA for the three and six months ended March 31, 2010 and
2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing
operations, net of taxes
|
$
(11,630)
|
|
$
4,220
|
|
$
(14,721)
|
|
$
1,685
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
(7,155)
|
|
2,610
|
|
(9,057)
|
|
1,115
|
|
|
Net income attributable to
noncontrolling interest
|
2,151
|
|
3,767
|
|
2,856
|
|
5,816
|
|
|
Equity in net earnings of
unconsolidated affiliates
|
(3,206)
|
|
(2,714)
|
|
(4,722)
|
|
(4,779)
|
|
|
Interest and other income
|
(23)
|
|
(73)
|
|
(93)
|
|
(172)
|
|
|
Loss on note receivable
|
1,507
|
|
-
|
|
1,507
|
|
-
|
|
|
Loss on early extinguishment of
debt
|
-
|
|
(259)
|
|
-
|
|
6,702
|
|
|
Interest expense
|
1,149
|
|
581
|
|
2,207
|
|
2,678
|
|
|
(Gain) loss on disposal of property,
equipment and other assets
|
(76)
|
|
108
|
|
19
|
|
181
|
|
|
Impairment of property and
equipment
|
19,462
|
|
-
|
|
19,462
|
|
-
|
|
|
Amortization
|
8
|
|
8
|
|
16
|
|
16
|
|
|
Depreciation
|
7,768
|
|
6,217
|
|
15,418
|
|
12,713
|
|
|
Pre-opening expenses
|
-
|
|
380
|
|
866
|
|
587
|
|
|
Share-based compensation
expense
|
1,217
|
|
839
|
|
1,826
|
|
1,837
|
|
|
Adjusted EBITDA
|
$
11,172
|
|
$
15,684
|
|
$
15,584
|
|
$
28,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles MedCath
Corporation's diluted (loss) earnings per share from continuing
operations, net of taxes attributable to MedCath Corporations
common stockholders as derived directly from MedCath's consolidated
financial statements to Adjusted diluted (loss) earnings per share
from continuing operations for the three and six months ended March
31, 2010 and 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per
share
|
$
(0.59)
|
|
$
0.21
|
|
$
(0.74)
|
|
$
0.09
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of
debt
|
-
|
|
-
|
|
-
|
|
0.22
|
|
|
Impairment of property and
equipment
|
0.60
|
|
-
|
|
0.60
|
|
-
|
|
|
Loss on note receivable
|
0.05
|
|
-
|
|
0.05
|
|
-
|
|
|
Share-based compensation
expense
|
0.04
|
|
0.03
|
|
0.06
|
|
0.04
|
|
|
Pre-opening expenses
|
-
|
|
0.01
|
|
0.02
|
|
0.02
|
|
|
Adjusted diluted earnings (loss) per
share
|
$
0.10
|
|
$
0.25
|
|
$
(0.01)
|
|
$
0.37
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE MedCath Corporation