MDTH Medcath Corp. (MM)

Heath care services provider MedCath Corporation’s (MDTH) third-quarter fiscal 2011 adjusted (excluding one-time items other than stock-based compensation expenses) loss per share from continued operation of 4 cents missed the Zacks Consensus Estimate of earnings of 9 cents per share.

However, the North Carolina-based company turned to profit (on a reported basis) in the quarter riding on gains associated with asset sales. MedCath posted a net income of $12.3 million (or 61 cents a share) in the third quarter compared with a loss of $12.8 million (or 64 cents a share) a year-ago.

On a continuing operation basis, the company booked a net loss of $3.1 million (or 15 cents per share) versus a loss of $14.8 million (or 74 cents per share) in the earlier year quarter.

Revenues inched down 1.4% year over year to $91.8 million, but were higher than the Zacks Consensus Estimate of $72 million. Total hospital admissions dipped 1.2% year over year in the quarter to 4,779. Hospital outpatient cases climbed 8.6% year over year to 15,493.

MedCath exited the quarter with cash and cash equivalents of $113.7 million, more than a four-fold year over year increase. The company used the proceeds (of $29.8 million) from assets sales along with cash on hand to repay debt worth $30.2 million during the third quarter.

MedCath provides high acuity health care services and operates 4 hospitals with a total of 366 licensed beds. It owns and operates specialty hospitals that provide diagnosis and treatment of cardiovascular diseases.

The company, on August 1, 2011, completed the sale of its equity interest in Arkansas Heart Hospital and divested substantially all the assets of Heart Hospital of New Mexico. Results of these entities are included in the third quarter report. MedCath expects net proceeds from these transactions to be roughly $122 million.

 
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