CHARLOTTE, N.C., Aug. 9, 2011 /PRNewswire/ -- MedCath Corporation
(Nasdaq: MDTH), a healthcare provider focused on high acuity
healthcare services, today announced operating results for its
third fiscal quarter ended June 30,
2011. The results for MedCath’s third fiscal quarter include
Heart Hospital of New Mexico and
Arkansas Heart Hospital, which were sold on August 1, 2011.
Third Fiscal Quarter Highlights
- Net revenue of $91.8 million,
down 1.4% compared to the third quarter of fiscal 2010.
- Total admissions and adjusted admissions of 4,779 and 7,249,
down 1.2% and 0.7%, respectively, compared to the third quarter of
fiscal 2010.
- Loss from continuing operations of ($3.1) million and Adjusted EBITDA of
$4.6 million, down 41.0% compared to
third quarter of fiscal 2010.
- Diluted loss per share from continuing operations of
($0.15) and Adjusted EPS of
($0.03).
- Total cash of $113.7 million as
of the end of the third quarter of fiscal 2011 after repayment of
$30.2 million in third party debt
outstanding.
Third Quarter of Fiscal 2011 Results Compared to Third
Quarter of Fiscal 2010 Results
MedCath's reported net revenue decreased 1.4% to $91.8 million in the third quarter of fiscal 2011
compared to $93.1 million in the
third quarter of fiscal 2010. Net income was $12.3 million in the third quarter of fiscal 2011
compared to a net loss of $(12.8)
million in the third quarter of fiscal 2010. MedCath's loss
from continuing operations was $(3.1)
million, or $(0.15) per
diluted share, in the third quarter of fiscal 2011 compared to
$(14.8) million, or $(0.74) per diluted share, in the third quarter
of fiscal 2010.
MedCath's third quarter of fiscal 2011 financial results
included the following items:
- $0.8 million, or ($0.02) per diluted share, in long-lived asset
impairment expense in the Corporate division related to undeveloped
land located adjacent to one of MedCath’s hospitals;
- $2.7 million, or ($0.09) per diluted share, of professional fees
and other expenses incurred in connection with MedCath's strategic
options process announced on March 1,
2010; and
- $0.4 million, or ($0.01) per diluted share, in share-based
compensation expense.
- MedCath's third quarter of fiscal 2010 financial results
included the following items:
- $22.8 million, or ($0.69) per diluted share, in impairment
expense;
- $0.6 million, or ($0.02) per diluted share, in share-based
compensation expense; and
- $1.4 million, or ($0.06) per diluted share, of professional fees
and other expenses incurred in connection with MedCath's strategic
options process announced on March 1,
2010.
Adjusted EBITDA was $4.6 million
in the third quarter of fiscal 2011 compared to $7.8 million in the same period of the prior
year. MedCath's Adjusted EPS for the third quarter of fiscal 2011
was $(0.03) compared with
$0.03 in the third quarter of fiscal
2010.
Commenting on the quarter, O. Edwin
French, MedCath President and Chief Executive Officer,
stated, "During our third fiscal quarter, we continued to make
progress regarding our strategic options process, completing the
sale of our MedCath Partners division and announcing two hospital
transactions that closed August 1.
Operationally, our results this quarter were impacted by a 9.8%
reduction in open heart procedures, contributing to a decline in
net revenue and Adjusted EBITDA, and lower financial results at one
hospital that was sold during our fourth quarter of fiscal
2011.”
Operating Statistics and Debt Repayment
MedCath's financial results for the third fiscal quarter ended
June 30, 2011, reflect a 1.2%
decrease in total admissions and a 0.7% decrease in adjusted
admissions compared to the third quarter of fiscal 2010. Hospital
outpatient cases, including emergency department visits, totaled
15,493 in the third quarter of fiscal 2011, up 8.6% compared to the
third quarter of fiscal 2010.
Total uncompensated care, which includes charity care plus bad
debt expense, equaled 13.6% of hospital division net patient
revenue before the deduction for charity care in the third quarter
of fiscal 2011 compared to 13.1% in the third quarter of fiscal
2010.
We received $29.8 million in cash
from the sale of assets during the third quarter of fiscal 2011,
which was used, together with cash on hand, to repay $30.2 million in third party debt
outstanding.
Update on Strategic Options Process
On August 1, 2011, MedCath
announced the completion of separate transactions related to the
sale of its equity interest in Arkansas Heart Hospital and the sale
of substantially all the assets of Heart Hospital of New Mexico. These transactions represented the
eighth and ninth transactions since MedCath announced its strategic
options process in March 2010.
MedCath anticipates that final net proceeds from these two
transactions, after liquidation of retained assets and prior to
payment of any contingent or unknown liabilities, to be
approximately $122.0 million.
Following these transactions, MedCath owns interest and operates
four hospitals, three of which it owns a majority interest and one
in which it owns a minority interest.
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 third fiscal quarter of 2011 represents
MedCath's 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;
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
third fiscal quarter of fiscal 2011 represents MedCath's diluted
loss per share from continuing operations adjusted for 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 nine months of fiscal 2011
represents MedCath's 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; (gain)
loss on disposal of property, equipment and other assets;
impairment on long-lived assets; depreciation; share-based
compensation expense; professional fees associated with MedCath's
exploration of strategic options, and sales tax refunds. Adjusted
EPS for the first nine months 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; sales tax
refunds; impairment on long-lived assets and share-based
compensation expense.
Adjusted EBITDA for the third fiscal quarter of 2010 represents
MedCath's 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 professional fees associated
with MedCath's exploration of strategic options. Adjusted EPS for
the third 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 professional fees associated with MedCath's exploration
of strategic options.
Adjusted EBITDA for the first nine months of fiscal quarter of
2010 represents MedCath's loss from continuing operations, net of
taxes attributable to MedCath's common stockholders, income tax
benefit; net income attributable to non-controlling interests;
equity in earnings of unconsolidated affiliates; interest and other
income, net; loss on note receivable; interest expense; (gain) loss
on disposal of property, equipment and other assets; impairment of
long-lived assets; depreciation; per-opening expenses; share-based
compensation expense, and professional fees associated with
MedCath's exploration of strategic options. Adjusted EPS for the
third fiscal quarter of fiscal 2010 represents MedCath's diluted
loss per share from continuing operations adjusted for professional
fees associated with MedCath's exploration of strategic options;
impairment on long-lived assets; loss on note receivable;
share-based compensation expense, 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 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 four hospitals with a total of 366
licensed beds, located in Arizona,
California, Louisiana, and Texas.
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, 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 third 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, as amended. 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 June 30,
|
|
Nine Months
Ended June 30,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
91,839
|
|
$
93,139
|
|
$
273,617
|
|
$
271,625
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Personnel expense
|
|
31,514
|
|
31,090
|
|
96,490
|
|
93,950
|
|
|
Medical supplies
expense
|
|
24,219
|
|
23,559
|
|
66,573
|
|
68,938
|
|
|
Bad debt expense
|
|
10,767
|
|
10,782
|
|
30,483
|
|
28,196
|
|
|
Other operating
expenses
|
|
23,919
|
|
21,915
|
|
69,476
|
|
64,005
|
|
|
Pre-opening expenses
|
|
-
|
|
-
|
|
-
|
|
866
|
|
|
Depreciation
|
|
3,745
|
|
5,389
|
|
12,092
|
|
15,773
|
|
|
Impairment of long-lived
assets
|
|
810
|
|
22,813
|
|
20,358
|
|
37,513
|
|
|
(Gain) loss on disposal of
property, equipment and other assets
|
|
(212)
|
|
12
|
|
(141)
|
|
43
|
|
|
|
Total operating
expenses
|
|
94,762
|
|
115,560
|
|
295,331
|
|
309,284
|
|
Loss from operations
|
|
(2,923)
|
|
(22,421)
|
|
(21,714)
|
|
(37,659)
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(556)
|
|
(1,050)
|
|
(2,605)
|
|
(3,046)
|
|
|
Interest and other
income
|
|
76
|
|
56
|
|
615
|
|
141
|
|
|
Gain on sale of unconsolidated
affiliates
|
|
-
|
|
-
|
|
15,391
|
|
-
|
|
|
Loss on note
receivable
|
|
-
|
|
-
|
|
-
|
|
(1,507)
|
|
|
Equity in net earnings of
unconsolidated affiliates
|
|
303
|
|
1,391
|
|
1,679
|
|
3,984
|
|
|
|
Total other income (expense),
net
|
|
(177)
|
|
397
|
|
15,080
|
|
(428)
|
|
Loss from continuing operations
before income taxes
|
|
(3,100)
|
|
(22,024)
|
|
(6,634)
|
|
(38,087)
|
|
Income tax benefit
|
|
(1,862)
|
|
(8,818)
|
|
(5,370)
|
|
(15,840)
|
|
Loss from continuing
operations
|
|
(1,238)
|
|
(13,206)
|
|
(1,264)
|
|
(22,247)
|
|
Income from discontinued
operations, net of taxes
|
|
15,260
|
|
2,745
|
|
53,475
|
|
1,283
|
|
Net (loss) income
|
|
14,022
|
|
(10,461)
|
|
52,211
|
|
(20,964)
|
|
Less: Net income attributable to
noncontrolling interests
|
|
(1,691)
|
|
(2,355)
|
|
(16,336)
|
|
(5,718)
|
|
Net income (loss) attributable
to MedCath Corporation
|
|
$
12,331
|
|
$
(12,816)
|
|
$
35,875
|
|
$
(26,682)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to MedCath
Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations,
net of taxes
|
|
$
(3,088)
|
|
$
(14,823)
|
|
$
(8,754)
|
|
$
(27,298)
|
|
|
Income from discontinued
operations, net of taxes
|
|
15,419
|
|
2,007
|
|
44,629
|
|
616
|
|
|
Net income (loss)
|
|
$
12,331
|
|
$
(12,816)
|
|
$
35,875
|
|
$
(26,682)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share,
basic
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to MedCath Corporation common stockholders
|
|
$
(0.15)
|
|
$
(0.74)
|
|
$
(0.43)
|
|
$
(1.38)
|
|
|
Income from discontinued
operations attributable to MedCath Corporation common
stockholders
|
|
0.76
|
|
0.10
|
|
2.21
|
|
0.03
|
|
|
Earnings (loss) per share,
basic
|
|
$
0.61
|
|
$
(0.64)
|
|
$
1.78
|
|
$
(1.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share,
diluted
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
attributable to MedCath Corporation common stockholders
|
|
$
(0.15)
|
|
$
(0.74)
|
|
$
(0.43)
|
|
$
(1.38)
|
|
|
Income from discontinued
operations attributable to MedCath Corporation common
stockholders
|
|
0.76
|
|
0.10
|
|
2.21
|
|
0.03
|
|
|
Earnings (loss) per share,
diluted
|
|
$
0.61
|
|
$
(0.64)
|
|
$
1.78
|
|
$
(1.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares, basic
|
|
20,245
|
|
19,829
|
|
20,132
|
|
19,823
|
|
Dilutive effect of stock options
and restricted stock
|
|
7
|
|
-
|
|
6
|
|
-
|
|
Weighted average number of
shares, diluted
|
|
20,252
|
|
19,829
|
|
20,138
|
|
19,823
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDCATH
CORPORATION
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(In
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
113,669
|
|
$
32,892
|
|
|
Accounts receivable,
net
|
44,423
|
|
42,141
|
|
|
Income tax receivable
|
-
|
|
6,188
|
|
|
Medical supplies
|
10,338
|
|
10,540
|
|
|
Deferred income tax
assets
|
8,678
|
|
13,247
|
|
|
Prepaid expenses and other
current assets
|
12,259
|
|
13,339
|
|
|
Current assets of discontinued
operations
|
45,495
|
|
49,963
|
|
|
|
Total current assets
|
234,862
|
|
168,310
|
|
Property and equipment,
net
|
143,815
|
|
174,287
|
|
Other assets
|
22,416
|
|
15,983
|
|
Non-current assets of
discontinued operations
|
3,083
|
|
135,958
|
|
|
|
Total assets
|
$
404,176
|
|
$
494,538
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
$
17,088
|
|
$
15,550
|
|
|
Income tax payable
|
7,158
|
|
-
|
|
|
Accrued compensation and
benefits
|
12,662
|
|
15,951
|
|
|
Other accrued
liabilities
|
16,126
|
|
16,155
|
|
|
Current portion of long-term
debt and obligations
|
|
|
|
|
|
under capital
leases
|
2,339
|
|
16,566
|
|
|
Current liabilities of
discontinued operations
|
13,533
|
|
36,291
|
|
|
|
Total current
liabilities
|
68,906
|
|
100,513
|
|
Long-term debt
|
-
|
|
52,500
|
|
Obligations under capital
leases
|
4,295
|
|
5,999
|
|
Other long-term
obligations
|
3,062
|
|
5,053
|
|
Long-term liabilities of
discontinued operations
|
-
|
|
36,469
|
|
|
|
Total liabilities
|
76,263
|
|
200,534
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling
interest
|
8,280
|
|
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;
|
|
|
|
|
|
22,270,012 issued and
20,315,651 outstanding at June 30, 2011;
|
|
|
|
|
|
22,423,666 issued and
20,469,305 outstanding at September 30, 2010
|
216
|
|
216
|
|
|
Paid-in capital
|
458,729
|
|
457,725
|
|
|
Accumulated deficit
|
(103,916)
|
|
(139,791)
|
|
|
Accumulated other comprehensive
loss
|
-
|
|
(444)
|
|
|
Treasury stock, at
cost;
|
|
|
|
|
|
1,954,361 shares at June 30,
2011 and September 30, 2010
|
(44,797)
|
|
(44,797)
|
|
|
|
Total MedCath Corporation
stockholders' equity
|
310,232
|
|
272,909
|
|
|
Noncontrolling
interest
|
9,401
|
|
9,561
|
|
Total equity
|
|
319,633
|
|
282,470
|
|
|
|
Total liabilities and
equity
|
$
404,176
|
|
$
494,538
|
|
|
|
|
|
|
|
MEDCATH
CORPORATION
|
|
SELECTED
OPERATING DATA
|
|
(In
thousands, except per share data and selected operating
data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Nine Months
Ended June 30,
|
|
|
|
|
|
2011
|
|
2010
|
|
%
Change
|
|
2011
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
$
91,839
|
|
$
93,139
|
|
(1.4)%
|
|
$
273,617
|
|
$
271,625
|
|
0.7%
|
|
Adjusted EBITDA (1)
|
|
|
|
$
4,589
|
|
$
7,783
|
|
(41.0)%
|
|
$
19,558
|
|
$
20,352
|
|
(3.9)%
|
|
Loss from operations
|
|
|
|
$
(2,923)
|
|
$
(22,421)
|
|
(87.0)%
|
|
$
(21,714)
|
|
$
(37,659)
|
|
(42.3)%
|
|
Loss from continuing operations,
net of taxes
|
|
|
|
$
(3,088)
|
|
$
(14,823)
|
|
(79.2)%
|
|
$
(8,754)
|
|
$
(27,298)
|
|
(67.9)%
|
|
Loss per share from continuing
operations, basic
|
|
|
|
$
(0.15)
|
|
$
(0.74)
|
|
(79.3)%
|
|
$
(0.43)
|
|
$
(1.38)
|
|
(68.4)%
|
|
Loss per share from continuing
operations, diluted
|
|
|
|
$
(0.15)
|
|
$
(0.74)
|
|
(79.3)%
|
|
$
(0.43)
|
|
$
(1.38)
|
|
(68.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Supplemental
Financial Disclosure-Reconciliation of GAAP Financial Measures to
Non-GAAP Financial Measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Nine Months
Ended June 30,
|
|
|
|
|
|
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)
|
|
|
|
4,779
|
|
4,835
|
|
(1.2)%
|
|
14,115
|
|
14,244
|
|
(0.9)%
|
|
Adjusted admissions
(f)
|
|
|
|
7,249
|
|
7,300
|
|
(0.7)%
|
|
21,308
|
|
21,051
|
|
1.2%
|
|
Patient days (g)
|
|
|
|
17,672
|
|
18,223
|
|
(3.0)%
|
|
52,741
|
|
53,588
|
|
(1.6)%
|
|
Adjusted patient days
(h)
|
|
|
|
26,939
|
|
27,546
|
|
(2.2)%
|
|
80,088
|
|
79,461
|
|
0.8%
|
|
Average length of stay (days)
(i)
|
|
|
|
3.70
|
|
3.77
|
|
(1.9)%
|
|
3.74
|
|
3.76
|
|
(0.5)%
|
|
Occupancy (j)
|
|
|
|
51.1%
|
|
52.7%
|
|
|
|
50.8%
|
|
51.7%
|
|
|
|
Inpatient catheterization
procedures (k)
|
|
|
|
2,002
|
|
2,048
|
|
(2.2)%
|
|
5,731
|
|
6,073
|
|
(5.6)%
|
|
Inpatient surgical procedures
(l)
|
|
|
|
1,125
|
|
1,216
|
|
(7.5)%
|
|
3,343
|
|
3,474
|
|
(3.8)%
|
|
Hospital net revenue
|
|
|
|
$
91,766
|
|
$
93,030
|
|
(1.4)%
|
|
$
273,379
|
|
$
271,293
|
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined Operating Data
(b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals
|
|
|
|
6
|
|
6
|
|
|
|
6
|
|
6
|
|
|
|
Licensed beds (c)
|
|
|
|
533
|
|
533
|
|
|
|
533
|
|
533
|
|
|
|
Staffed and available beds
(d)
|
|
|
|
489
|
|
489
|
|
|
|
489
|
|
489
|
|
|
|
Admissions (e)
|
|
|
|
6,353
|
|
6,543
|
|
(2.9)%
|
|
19,260
|
|
19,685
|
|
(2.2)%
|
|
Adjusted admissions
(f)
|
|
|
|
10,366
|
|
10,520
|
|
(1.5)%
|
|
30,953
|
|
31,154
|
|
(0.6)%
|
|
Patient days (g)
|
|
|
|
22,556
|
|
23,416
|
|
(3.7)%
|
|
68,769
|
|
70,125
|
|
(1.9)%
|
|
Adjusted patient days
(h)
|
|
|
|
36,612
|
|
37,336
|
|
(1.9)%
|
|
110,136
|
|
110,168
|
|
(0.0)%
|
|
Average length of stay (days)
(i)
|
|
|
|
3.55
|
|
3.58
|
|
(0.8)%
|
|
3.57
|
|
3.56
|
|
0.3%
|
|
Occupancy (j)
|
|
|
|
50.7%
|
|
52.6%
|
|
|
|
51.5%
|
|
52.5%
|
|
|
|
Inpatient catheterization
procedures (k)
|
|
|
|
2,134
|
|
2,217
|
|
(3.7)%
|
|
6,232
|
|
6,673
|
|
(6.6)%
|
|
Inpatient surgical procedures
(l)
|
|
|
|
1,527
|
|
1,640
|
|
(6.9)%
|
|
4,580
|
|
4,640
|
|
(1.3)%
|
|
Hospital net revenue
|
|
|
|
$
117,525
|
|
$
118,618
|
|
(0.9)%
|
|
$
352,849
|
|
$
346,598
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) 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 nine months ended June 30, 2011 and
2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Nine Months
Ended June 30,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations, net of taxes
|
|
|
$
(3,088)
|
|
$
(14,823)
|
|
$
(8,754)
|
|
$
(27,298)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
(1,862)
|
|
(8,818)
|
|
(5,370)
|
|
(15,840)
|
|
Net income attributable to
noncontrolling interests
|
|
|
1,850
|
|
1,617
|
|
7,490
|
|
5,051
|
|
Equity in net earnings of
unconsolidated affiliates
|
|
|
(303)
|
|
(1,391)
|
|
(1,679)
|
|
(3,984)
|
|
Interest and other
income
|
|
|
(76)
|
|
(56)
|
|
(615)
|
|
(141)
|
|
Loss on note
receivable
|
|
|
-
|
|
-
|
|
-
|
|
1,507
|
|
Gain on sale of
unconsolidated affiliates
|
|
|
-
|
|
-
|
|
(15,391)
|
|
-
|
|
Interest
expense
|
|
|
556
|
|
1,050
|
|
2,605
|
|
3,046
|
|
(Gain) loss on disposal of
property, equipment and other assets
|
|
|
(212)
|
|
12
|
|
(141)
|
|
43
|
|
Impairment of long-lived
assets
|
|
|
810
|
|
22,813
|
|
20,358
|
|
37,513
|
|
Depreciation
|
|
|
3,745
|
|
5,389
|
|
12,092
|
|
15,773
|
|
Pre-opening
expenses
|
|
|
-
|
|
-
|
|
-
|
|
866
|
|
Share-based compensation
expense
|
|
|
428
|
|
554
|
|
3,282
|
|
2,380
|
|
Professional fees for
strategic options process
|
|
|
2,741
|
|
1,436
|
|
7,768
|
|
1,436
|
|
Sales tax refunds,
net
|
|
|
-
|
|
-
|
|
(2,087)
|
|
-
|
|
Adjusted EBITDA
|
|
|
$
4,589
|
|
$
7,783
|
|
$
19,558
|
|
$
20,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine months ended June
30, 2011 and 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Nine Months
Ended June 30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per
share
|
|
|
$
(0.15)
|
|
$
(0.74)
|
|
$
(0.43)
|
|
$
(1.38)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
unconsolidated affiliates
|
|
|
-
|
|
-
|
|
(0.47)
|
|
-
|
|
Professional fees for
strategic options process
|
|
|
0.09
|
|
0.06
|
|
0.23
|
|
0.04
|
|
Sales tax
refunds
|
|
|
-
|
|
-
|
|
(0.06)
|
|
-
|
|
Impairment of long-lived
assets
|
|
|
0.02
|
|
0.69
|
|
0.62
|
|
1.15
|
|
Loss on note
receivable
|
|
|
-
|
|
-
|
|
-
|
|
0.05
|
|
Share-based compensation
expense
|
|
|
0.01
|
|
0.02
|
|
0.10
|
|
0.07
|
|
Pre-opening
expense
|
|
|
-
|
|
-
|
|
-
|
|
0.03
|
|
Adjusted diluted (loss) earnings
per share
|
|
|
$
(0.03)
|
|
$
0.03
|
|
$
(0.01)
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE MedCath Corporation