CHARLOTTE, N.C., May 9, 2011 /PRNewswire/ -- MedCath Corporation
(Nasdaq: MDTH), a healthcare provider focused on high acuity
healthcare services, today announced operating results for
its second fiscal quarter ended March 31,
2011. On April 26, 2011,
MedCath announced its intention to release the operating results
for its second fiscal quarter ended March
31, 2011 on Tuesday, May 10,
2011. MedCath elected to release its quarterly results today
and simultaneously with today’s announcement that it has entered
into definitive agreements relating to the sale of Arkansas Heart
Hospital and Heart Hospital of New
Mexico (MedCath Corporation Announces Entering Into
Definitive Agreements Relating to the Sale of Arkansas Heart
Hospital and Heart Hospital of New
Mexico, May 9, 2011). The
operating results of Arkansas Heart Hospital and Heart Hospital of
New Mexico are included in the
financial results for all periods included in this release.
Second Fiscal Quarter Highlights
- Net revenue of $97.2 million, up
0.4% compared to the second quarter of fiscal 2010.
- Loss from continuing operations of ($12.3) million and adjusted EBITDA of
$9.8 million, up 8.2% compared to
second quarter of fiscal 2010. Adjusted EBITDA margin up 80
basis points to 10.1% from 9.3%.
- Diluted loss per share from continuing operations of
($0.61) and adjusted EPS of
$0.05.
- Total admissions decrease for the second fiscal quarter of 2011
of 0.3%, and adjusted admissions decrease of 0.4%, compared to
second quarter of fiscal 2010.
Second Quarter of Fiscal 2011 Results Compared to Second
Quarter of Fiscal 2010 Results
MedCath’s reported net revenue increased 0.4% to $97.2 million in the second quarter of fiscal
2011 compared to $96.8 million in the
second quarter of fiscal 2010. Net loss was $(13.5) million in the second quarter of fiscal
2011 compared to $(11.2) million in
the second quarter of fiscal 2010. MedCath’s income from continuing
operations was $(8.9) million, or
$(0.61) per diluted share, in the
second quarter of fiscal 2011 compared to $(6.8) million, or $(0.46) per diluted share, in the second quarter
of fiscal 2010.
MedCath’s second quarter of fiscal 2011 financial results
include the following items:
- $19.5 million, or ($0.59) per diluted share, in long-lived asset
impairment expense related to two hospitals;
- $1.6 million, or ($0.05) per diluted share, of professional fees
and other expenses incurred in connection with MedCath’s strategic
options process announced on March 1,
2010;
- $0.9 million, or ($0.03) per diluted share, in share-based
compensation expense; and
- $0.2 million, or $0.01 per diluted share, related to a gain on the
sale of a small unconsolidated affiliate.
MedCath’s second quarter of fiscal 2010 financial results
include the following items:
- $14.7 million, or ($0.60) per diluted share, in impairment expense;
- $1.2 million, or ($0.03) per diluted share, in share-based
compensation expense; and
- $1.5 million, or ($0.05) per diluted share, loss on a note
receivable.
Adjusted EBITDA was $9.8 million
in the second quarter of fiscal 2011 compared to $9.0 million in the same period of the prior
year. MedCath’s Adjusted EPS for the second quarter of fiscal
2011 was $0.05 compared with
$0.23 in the second quarter of fiscal
2010.
Commenting on the quarter, O. Edwin
French, MedCath President and Chief Executive Officer,
stated, “With a smaller number of operating units compared to the
prior periods there’s potential for less predictability in this and
future quarters. Our operating units were able to mitigate
the risk this quarter with good cost management on soft admissions
so I’m especially pleased with the earnings accretion we’re
reporting.”
Operating Statistics and Cash Flow
MedCath’s financial results for the second fiscal quarter ended
March 31, 2011, reflect a 0.3%
decrease in total admissions and a 0.4% decrease in adjusted
admissions compared to the second quarter of fiscal 2010. Hospital
outpatient cases, including emergency department visits, totaled
15,469 in the second quarter of fiscal 2011, up 14.7% compared to
the second quarter of fiscal 2010.
Total uncompensated care, which includes charity care plus bad
debt expense, equaled 13.0% of hospital division net patient
revenue before the deduction for charity care in the second quarter
of fiscal 2011 compared to 12.5% in the second quarter of fiscal
2010.
Net cash provided (used) by operating activities from continuing
operations for the second quarter of fiscal 2011 was $(6.0) million compared to $9.7 million in the second quarter of fiscal
2010. This decline in net cash provided by operating
activities primarily resulted from the payment of taxes during the
quarter which were higher than amounts previously paid due to
taxable gains incurred on asset sales in prior periods.
Impairment Expense
MedCath’s second quarter of fiscal 2011 results include a
$19.5 million impairment
charge related to the reduction in the carrying value of long-lived
assets associated with its Hualapai Mountain Medical Center
(“HMMC”) and Louisiana Medical Center and Heart Hospital (“LMCHH”).
The impairment charge reduced income from continuing operations by
$19.5 million and earnings per
diluted share by ($0.59) in the
second quarter of fiscal 2011. In accordance with generally
accepted accounting principles, MedCath evaluates whether or not
the carrying values of long lived assets exceed their fair values
whenever indications of impairment arise. The fair values of
long lived assets were determined by a review of current and
anticipated operating performance and outlook, and market-based
information. MedCath will continue to evaluate the carrying
value of its long lived assets when and if new indications of
impairment exist.
MedCath has intercompany notes outstanding with HMMC and LMCHH
as of March 31, 2011. The net
realizable value of those notes is the carrying value of the
underlying assets that serve as collateral on the notes, which was
approximately $44.7 million at
March 31, 2011 after taking into
consideration the impairment charges.
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”). The supplemental
financial information furnished herewith provides a quantitative
reconciliation of Adjusted EBITDA and Adjusted EPS based on the
following calculations as and for the periods identified below.
Adjusted EBITDA for the second fiscal quarter of 2011 represents
MedCath’s income (loss) from continuing operations, net of taxes
attributable to MedCath’s common stockholders; income tax benefit,
net income attributable to noncontrolling interests; equity in net
earnings of unconsolidated affiliates; interest and other income;
gain on sale of unconsolidated affiliates, interest expense; loss
on disposal of property, equipment and other assets; impairment on
long-lived assets; depreciation; share-based compensation expense,
and professional fees associated with MedCath’s exploration of
strategic options. Adjusted EPS for the second fiscal quarter of
fiscal 2011 represents MedCath’s diluted loss per share from
continuing operations adjusted for gain on sale of unconsolidated
affiliates, professional fees associated with MedCath’s
consideration of strategic options; impairment on long-lived assets
and share-based compensation expense.
Adjusted EBITDA for the first six months of fiscal quarter of
2011 represents MedCath’s income (loss) from continuing operations,
net of taxes attributable to MedCath’s common stockholders; income
tax benefit, net income attributable to noncontrolling interests;
equity in net earnings of unconsolidated affiliates; interest and
other income; gain on sale of unconsolidated affiliates, interest
expense; loss on disposal of property, equipment and other assets;
impairment on long-lived assets; depreciation; share-based
compensation expense; sales tax refunds, and professional fees
associated with MedCath’s exploration of strategic options.
Adjusted EPS for the first six months of fiscal quarter of fiscal
2011 represents MedCath’s diluted loss per share from continuing
operations adjusted for gain on sale of unconsolidated affiliates,
professional fees associated with MedCath’s consideration of
strategic options; impairment on long-lived assets; sales tax
refunds, and share-based compensation expense.
Adjusted EBITDA for the second fiscal quarter of 2010 represents
MedCath’s income (loss) from continuing operations, net of taxes
attributable to MedCath’s common stockholders, income tax benefit;
net income attributable to noncontrolling interests; equity in
earnings of unconsolidated affiliates; interest and other income,
net; interest expense; loss on disposal of property, equipment and
other assets; depreciation; share-based compensation expense,
impairment on long-lived assets, and loss on note receivable.
Adjusted EPS for the second fiscal quarter of fiscal 2010
represents MedCath’s diluted loss per share from continuing
operations adjusted for share-based compensation expense;
impairment loss on long-lived assets, and loss on note
receivable.
Adjusted EBITDA for the first six months of fiscal quarter of
2010 represents MedCath’s income (loss) from continuing operations,
net of taxes attributable to MedCath’s common stockholders, income
tax benefit; net income attributable to noncontrolling interests;
equity in earnings of unconsolidated affiliates; interest and other
income, net; interest expense; loss on disposal of property,
equipment and other assets; depreciation; share-based compensation
expense, impairment on long-lived assets; pre-opening expense, and
loss on note receivable. Adjusted EPS for the first six months of
fiscal quarter of fiscal 2010 represents MedCath’s diluted loss per
share from continuing operations adjusted for share-based
compensation expense; impairment loss on long-lived assets;
pre-opening expense, and loss on note receivable.
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 attributable to MedCath’s common stockholders
and Adjusted EPS to diluted EPS from continuing operations.
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 six hospitals with a
total of 533 licensed beds, located in Arizona, Arkansas, California, Louisiana, New
Mexico, and Texas.
Parts of this announcement contain forward-looking statements
that involve risks and uncertainties, including statements
regarding the evaluation of long lived assets and possible new
indications of impairment. 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, the implementation
of healthcare reform legislation and future enactment of
changes in federal law that would further 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 2011 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, 2010 filed with
the Securities and Exchange Commission on December 14, 2010. Copies of our filings
with the Securities and Exchange Commission, including exhibits,
are available at www.sec.gov to review.
MEDCATH
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In
thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended March 31,
|
|
Six Months
Ended March 31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$ 97,163
|
|
$ 96,777
|
|
$ 186,063
|
|
$ 184,607
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Personnel expense
|
33,859
|
|
33,150
|
|
66,313
|
|
64,786
|
|
|
Medical supplies
expense
|
23,189
|
|
23,581
|
|
42,411
|
|
45,688
|
|
|
Bad debt expense
|
10,006
|
|
9,931
|
|
19,715
|
|
17,437
|
|
|
Other operating
expenses
|
22,843
|
|
22,296
|
|
46,959
|
|
44,640
|
|
|
Pre-opening expenses
|
-
|
|
-
|
|
-
|
|
866
|
|
|
Depreciation
|
4,630
|
|
6,124
|
|
9,517
|
|
12,064
|
|
|
Impairment of long-lived
assets
|
19,548
|
|
14,700
|
|
19,548
|
|
14,700
|
|
|
Loss (gain) on disposal of
property, equipment and other assets
|
178
|
|
(69)
|
|
271
|
|
27
|
|
|
|
Total operating
expenses
|
114,253
|
|
109,713
|
|
204,734
|
|
200,208
|
|
Loss from operations
|
(17,090)
|
|
(12,936)
|
|
(18,671)
|
|
(15,601)
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(997)
|
|
(1,054)
|
|
(2,079)
|
|
(1,999)
|
|
|
Interest and other
income
|
50
|
|
15
|
|
539
|
|
85
|
|
|
Gain on sale of unconsolidated
affiliates
|
179
|
|
-
|
|
15,570
|
|
-
|
|
|
Loss on note
receivable
|
-
|
|
(1,507)
|
|
-
|
|
(1,507)
|
|
|
Equity in net earnings of
unconsolidated affiliates
|
1,258
|
|
3,092
|
|
1,860
|
|
4,608
|
|
|
|
Total other income (expense),
net
|
490
|
|
546
|
|
15,890
|
|
1,187
|
|
Loss from continuing operations
before income taxes
|
(16,600)
|
|
(12,390)
|
|
(2,781)
|
|
(14,414)
|
|
Income tax benefit
|
(7,695)
|
|
(5,639)
|
|
(3,213)
|
|
(6,976)
|
|
(Loss) income from continuing
operations
|
(8,905)
|
|
(6,751)
|
|
432
|
|
(7,438)
|
|
(Loss) income from discontinued
operations, net of taxes
|
(1,401)
|
|
(1,934)
|
|
37,727
|
|
(3,064)
|
|
Net (loss) income
|
(10,306)
|
|
(8,685)
|
|
38,159
|
|
(10,502)
|
|
Less: Net income attributable to
noncontrolling interest
|
(3,189)
|
|
(2,524)
|
|
(14,615)
|
|
(3,364)
|
|
Net (loss) income attributable
to MedCath Corporation
|
$ (13,495)
|
|
$ (11,209)
|
|
$ 23,544
|
|
$ (13,866)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to MedCath
Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations,
net of taxes
|
$ (12,341)
|
|
$ (8,970)
|
|
$ (5,179)
|
|
$ (10,872)
|
|
|
(Loss) income from discontinued
operations, net of taxes
|
(1,154)
|
|
(2,239)
|
|
28,723
|
|
(2,994)
|
|
|
Net (loss) income
|
$ (13,495)
|
|
$ (11,209)
|
|
$ 23,544
|
|
$ (13,866)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share,
basic
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to MedCath Corporation common stockholders
|
$
(0.61)
|
|
$
(0.46)
|
|
$
(0.26)
|
|
$
(0.55)
|
|
|
(Loss) income from discontinued
operations attributable to MedCath Corporation common
stockholders
|
(0.06)
|
|
(0.11)
|
|
1.43
|
|
(0.15)
|
|
|
(Loss) earnings per share,
basic
|
$
(0.67)
|
|
$
(0.57)
|
|
$
1.17
|
|
$
(0.70)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share,
diluted
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to MedCath Corporation common stockholders
|
$
(0.61)
|
|
$
(0.46)
|
|
$
(0.26)
|
|
$
(0.55)
|
|
|
(Loss) income from discontinued
operations attributable to MedCath Corporation common
stockholders
|
(0.06)
|
|
(0.11)
|
|
1.43
|
|
(0.15)
|
|
|
(Loss) earnings per share,
diluted
|
$
(0.67)
|
|
$
(0.57)
|
|
$
1.17
|
|
$
(0.70)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares, basic
|
20,208
|
|
19,829
|
|
20,075
|
|
19,786
|
|
Dilutive effect of stock options
and restricted stock
|
-
|
|
-
|
|
6
|
|
-
|
|
Weighted average number of
shares, diluted
|
20,208
|
|
19,829
|
|
20,081
|
|
19,786
|
|
|
|
|
|
|
|
|
|
|
|
MEDCATH
CORPORATION
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(In
thousands, except share data)
|
|
|
|
|
|
|
March
31,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 119,735
|
|
$
33,141
|
|
|
Accounts receivable,
net
|
49,748
|
|
43,811
|
|
|
Income tax receivable
|
-
|
|
6,188
|
|
|
Medical supplies
|
10,373
|
|
10,550
|
|
|
Deferred income tax
assets
|
8,500
|
|
13,247
|
|
|
Prepaid expenses and other
current assets
|
12,949
|
|
13,453
|
|
|
Current assets of discontinued
operations
|
46,619
|
|
47,920
|
|
|
Total current assets
|
247,924
|
|
168,310
|
|
Property and equipment,
net
|
153,469
|
|
182,222
|
|
Other assets
|
18,484
|
|
24,716
|
|
Non-current assets of
discontinued operations
|
1,152
|
|
119,290
|
|
|
|
Total assets
|
$ 421,029
|
|
$
494,538
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
$ 16,633
|
|
$
15,716
|
|
|
Income tax payable
|
3,205
|
|
-
|
|
|
Accrued compensation and
benefits
|
14,775
|
|
16,418
|
|
|
Other accrued
liabilities
|
15,503
|
|
16,663
|
|
|
Current portion of long-term
debt and obligations
|
|
|
|
|
|
under capital
leases
|
32,793
|
|
16,672
|
|
|
Current liabilities of
discontinued operations
|
14,174
|
|
35,044
|
|
|
|
Total current
liabilities
|
97,083
|
|
100,513
|
|
Long-term debt
|
-
|
|
52,500
|
|
Obligations under capital
leases
|
5,191
|
|
6,500
|
|
Other long-term
obligations
|
2,804
|
|
5,053
|
|
Long-term liabilities of
discontinued operations
|
-
|
|
35,968
|
|
|
|
Total liabilities
|
105,078
|
|
200,534
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling
interest
|
7,356
|
|
11,534
|
|
|
|
|
|
|
|
|
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;
|
|
|
|
|
|
22,327,467 issued and
22,281,828 outstanding at March 31, 2011;
|
|
|
|
|
|
22,423,666 issued and
20,469,305 outstanding at September 30, 2010
|
216
|
|
216
|
|
|
Paid-in capital
|
458,573
|
|
457,725
|
|
|
Accumulated deficit
|
(116,247)
|
|
(139,791)
|
|
|
Accumulated other comprehensive
loss
|
-
|
|
(444)
|
|
|
Treasury stock, at
cost;
|
|
|
|
|
|
1,954,361 shares at March 31,
2011 and September 30, 2010
|
(44,797)
|
|
(44,797)
|
|
|
|
Total MedCath Corporation
stockholders' equity
|
297,745
|
|
272,909
|
|
Noncontrolling
interest
|
10,850
|
|
9,561
|
|
Total equity
|
308,595
|
|
282,470
|
|
|
|
Total liabilities and
equity
|
$ 421,029
|
|
$
494,538
|
|
|
|
|
|
|
|
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,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Operations
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$ 97,163
|
|
$ 96,777
|
|
0.4%
|
|
$ 186,063
|
|
$ 184,607
|
|
0.8%
|
|
Adjusted EBITDA (1)
|
$ 9,770
|
|
$ 9,033
|
|
8.2%
|
|
$ 15,575
|
|
$ 13,882
|
|
12.2%
|
|
Loss from operations
|
$ (17,090)
|
|
$ (12,936)
|
|
32.1%
|
|
$ (18,671)
|
|
$ (15,601)
|
|
19.7%
|
|
Loss from continuing operations,
net of taxes
|
$ (12,341)
|
|
$ (8,970)
|
|
37.6%
|
|
$ (5,179)
|
|
$ (10,872)
|
|
(52.4)%
|
|
Loss per share from continuing
operations, basic
|
$
(0.61)
|
|
$
(0.46)
|
|
32.1%
|
|
$
(0.26)
|
|
$
(0.55)
|
|
(53.0)%
|
|
Loss per share from continuing
operations, diluted
|
$
(0.61)
|
|
$
(0.46)
|
|
32.1%
|
|
$
(0.26)
|
|
$
(0.55)
|
|
(53.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Data
(a):
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals
|
5
|
|
5
|
|
|
|
5
|
|
5
|
|
|
|
Licensed beds ( c )
|
421
|
|
421
|
|
|
|
421
|
|
421
|
|
|
|
Staffed and available beds ( d
)
|
380
|
|
380
|
|
|
|
380
|
|
380
|
|
|
|
Admissions ( e )
|
4,905
|
|
4,918
|
|
(0.3)%
|
|
9,343
|
|
9,404
|
|
(0.6)%
|
|
Adjusted admissions ( f
)
|
7,231
|
|
7,257
|
|
(0.4)%
|
|
14,074
|
|
13,745
|
|
2.4%
|
|
Patient days ( g )
|
18,840
|
|
18,690
|
|
0.8%
|
|
35,085
|
|
35,362
|
|
(0.8)%
|
|
Adjusted patient days ( h
)
|
28,018
|
|
27,626
|
|
1.4%
|
|
53,194
|
|
51,905
|
|
2.5%
|
|
Average length of stay (days) (
i )
|
3.84
|
|
3.80
|
|
1.1%
|
|
3.76
|
|
3.76
|
|
0.0%
|
|
Occupancy ( j )
|
55.1%
|
|
54.6%
|
|
|
|
50.7%
|
|
51.1%
|
|
|
|
Inpatient catheterization
procedures ( k )
|
1,940
|
|
2,054
|
|
(5.6)%
|
|
3,732
|
|
3,888
|
|
(4.0)%
|
|
Inpatient surgical procedures (
l )
|
1,187
|
|
1,171
|
|
1.4%
|
|
2,219
|
|
2,259
|
|
(1.8)%
|
|
Hospital net revenue
|
$ 94,996
|
|
$ 93,881
|
|
1.2%
|
|
$ 181,614
|
|
$ 178,263
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined Operating Data
(b):
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals
|
6
|
|
6
|
|
|
|
6
|
|
6
|
|
|
|
Licensed beds ( c )
|
533
|
|
533
|
|
|
|
533
|
|
533
|
|
|
|
Staffed and available beds ( d
)
|
489
|
|
488
|
|
|
|
489
|
|
488
|
|
|
|
Admissions ( e )
|
6,658
|
|
6,933
|
|
(4.0)%
|
|
12,914
|
|
13,136
|
|
(1.7)%
|
|
Adjusted admissions ( f
)
|
10,441
|
|
10,953
|
|
(4.7)%
|
|
20,608
|
|
20,622
|
|
(0.1)%
|
|
Patient days ( g )
|
24,514
|
|
24,883
|
|
(1.5)%
|
|
46,233
|
|
46,710
|
|
(1.0)%
|
|
Adjusted patient days ( h
)
|
38,409
|
|
38,985
|
|
(1.5)%
|
|
73,593
|
|
72,817
|
|
1.1%
|
|
Average length of stay (days) (
i )
|
3.68
|
|
3.59
|
|
2.5%
|
|
3.58
|
|
3.56
|
|
0.6%
|
|
Occupancy ( j )
|
55.7%
|
|
56.7%
|
|
|
|
51.9%
|
|
52.6%
|
|
|
|
Inpatient catheterization
procedures ( k )
|
2,129
|
|
2,286
|
|
(6.9)%
|
|
4,101
|
|
4,318
|
|
(5.0)%
|
|
Inpatient surgical procedures (
l )
|
1,603
|
|
1,553
|
|
3.2%
|
|
3,054
|
|
3,002
|
|
1.7%
|
|
Hospital net revenue
|
$ 122,606
|
|
$ 119,333
|
|
2.7%
|
|
$ 235,325
|
|
$ 227,980
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
(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, 2011 and
2010.
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
Six Months
Ended March 31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations,
net of taxes
|
$ (12,341)
|
|
$ (8,970)
|
|
$ (5,179)
|
|
$ (10,872)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
(7,695)
|
|
(5,639)
|
|
(3,213)
|
|
(6,976)
|
|
|
Net income attributable to
noncontrolling interest
|
3,436
|
|
2,216
|
|
5,610
|
|
3,434
|
|
|
Equity in net earnings of
unconsolidated affiliates
|
(1,258)
|
|
(3,092)
|
|
(1,860)
|
|
(4,608)
|
|
|
Interest and other
income
|
(50)
|
|
(15)
|
|
(539)
|
|
(85)
|
|
|
Loss on note
receivable
|
-
|
|
1,507
|
|
-
|
|
1,507
|
|
|
Gain on sale of unconsolidated
affiliates
|
(179)
|
|
-
|
|
(15,570)
|
|
-
|
|
|
Interest expense
|
997
|
|
1,054
|
|
2,079
|
|
1,999
|
|
|
Loss (gain) on disposal of
property, equipment and other assets
|
178
|
|
(69)
|
|
271
|
|
27
|
|
|
Impairment of long-lived
assets
|
19,548
|
|
14,700
|
|
19,548
|
|
14,700
|
|
|
Depreciation
|
4,630
|
|
6,124
|
|
9,517
|
|
12,064
|
|
|
Pre-opening expenses
|
-
|
|
-
|
|
-
|
|
866
|
|
|
Share-based compensation
expense
|
922
|
|
1,217
|
|
2,854
|
|
1,826
|
|
|
Professional fees for strategic
options process
|
1,582
|
|
-
|
|
4,144
|
|
-
|
|
|
Sales tax refunds,
net
|
-
|
|
-
|
|
(2,087)
|
|
-
|
|
Adjusted EBITDA
|
$ 9,770
|
|
$ 9,033
|
|
$ 15,575
|
|
$ 13,882
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles
MedCath Corporation's diluted (loss) earnings per share from
continuing operations, net of taxes attributable to MedCath
Corporation's common stockholders as derived directly from
MedCath's consolidated financial
statements to Adjusted diluted earnings per share from continuing
operations (inclusive of the effect of dilutive shares) for the
three and six months ended March 31, 2011 and 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
Six Months
Ended March 31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per
share
|
$
(0.61)
|
|
$ (0.46)
|
|
$ (0.26)
|
|
$
(0.55)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Gain on sale of unconsolidated
affiliates
|
(0.01)
|
|
-
|
|
(0.47)
|
|
-
|
|
|
Professional fees for strategic
options process
|
0.05
|
|
-
|
|
0.13
|
|
-
|
|
|
Sales tax refunds
|
-
|
|
-
|
|
(0.06)
|
|
-
|
|
|
Impairment of long-lived
assets
|
0.59
|
|
0.60
|
|
0.59
|
|
0.60
|
|
|
Loss on note
receivable
|
-
|
|
0.05
|
|
-
|
|
0.05
|
|
|
Share-based compensation
expense
|
0.03
|
|
0.04
|
|
0.09
|
|
0.06
|
|
|
Pre-opening expense
|
-
|
|
-
|
|
-
|
|
0.02
|
|
Adjusted diluted earnings per
share
|
$
0.05
|
|
$ 0.23
|
|
$ 0.02
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
|
SOURCE MedCath Corporation