Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MEDCATH CORP | g26064e8vk.htm |
| EX-99.1 - EX-99.1 - MEDCATH CORP | g26064exv99w1.htm |
Exhibit 99.2
MEDCATH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
Net revenue |
$ | 88,900 | $ | 87,830 | ||||
Operating expenses: |
||||||||
Personnel expense |
32,454 | 31,636 | ||||||
Medical supplies expense |
19,222 | 22,107 | ||||||
Bad debt expense |
9,709 | 7,506 | ||||||
Other operating expenses |
24,116 | 22,344 | ||||||
Pre-opening expenses |
— | 866 | ||||||
Depreciation |
4,887 | 5,938 | ||||||
Loss on disposal of property, equipment and other assets |
93 | 96 | ||||||
Total operating expenses |
90,481 | 90,493 | ||||||
Loss from operations |
(1,581 | ) | (2,663 | ) | ||||
Other income (expenses): |
||||||||
Interest expense |
(1,082 | ) | (945 | ) | ||||
Interest and other income, net |
489 | 70 | ||||||
Gain on sale of unconsolidated investees |
15,391 | — | ||||||
Equity in net earnings of unconsolidated affiliates |
602 | 1,516 | ||||||
Total other income (expense), net |
15,400 | 641 | ||||||
Income (loss) from continuing operations before income taxes |
13,819 | (2,022 | ) | |||||
Income tax expense (benefit) |
4,482 | (1,337 | ) | |||||
Income (loss) from continuing operations |
9,337 | (685 | ) | |||||
Income (loss) from discontinued operations, net of taxes |
39,128 | (1,130 | ) | |||||
Net income (loss) attributable to MedCath Corporation |
48,465 | (1,815 | ) | |||||
Less: Net income attributable to noncontrolling interest |
(11,426 | ) | (841 | ) | ||||
Net income (loss) attributable to MedCath Corporation |
$ | 37,039 | $ | (2,656 | ) | |||
Amounts attributable to MedCath Corporation common stockholders: |
||||||||
Income (loss) from continuing operations, net of taxes |
$ | 7,162 | (1,902 | ) | ||||
Income (loss) from discontinued operations, net of taxes |
29,877 | (754 | ) | |||||
Net income (loss) |
$ | 37,039 | $ | (2,656 | ) | |||
Earnings (loss) per share, basic |
||||||||
Income (loss) from continuing operations attributable to MedCath Corporation common stockholders |
$ | 0.36 | $ | (0.09 | ) | |||
Income (loss) from discontinued operations attributable to MedCath Corporation common stockholders |
1.50 | (0.04 | ) | |||||
Income (loss) per share, basic |
$ | 1.86 | $ | (0.13 | ) | |||
Earnings (loss) per share, diluted |
||||||||
Income (loss) from continuing operations attributable to MedCath Corporation common stockholders |
$ | 0.36 | $ | (0.09 | ) | |||
Income (loss) from discontinued operations attributable to MedCath Corporation common stockholders |
1.50 | (0.04 | ) | |||||
Income (loss) per share, diluted |
$ | 1.86 | $ | (0.13 | ) | |||
Weighted average number of shares, basic |
19,943 | 19,743 | ||||||
Dilutive effect of stock options and restricted stock |
4 | — | ||||||
Weighted average number of shares, diluted |
19,947 | 19,743 | ||||||
MEDCATH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| December 31, | September 30, | |||||||
| 2010 | 2010 | |||||||
| (Unaudited) | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 158,475 | $ | 33,141 | ||||
Accounts receivable, net |
44,795 | 43,811 | ||||||
Income tax receivable |
— | 6,188 | ||||||
Medical supplies |
10,644 | 10,550 | ||||||
Deferred income tax assets |
7,815 | 13,247 | ||||||
Prepaid expenses and other current assets |
12,902 | 13,453 | ||||||
Current assets of discontinued operations |
57,345 | 47,920 | ||||||
Total current assets |
291,976 | 168,310 | ||||||
Property and equipment, net |
176,885 | 182,222 | ||||||
Other assets |
11,652 | 24,716 | ||||||
Non-current assets of discontinued operations |
1,232 | 119,290 | ||||||
Total assets |
$ | 481,745 | $ | 494,538 | ||||
Current liabilities: |
||||||||
Accounts payable |
$ | 19,957 | $ | 15,716 | ||||
Income tax payable |
14,316 | — | ||||||
Accrued compensation and benefits |
11,705 | 16,418 | ||||||
Other accrued liabilities |
21,073 | 16,663 | ||||||
Current portion of long-term debt and obligations
under capital leases |
61,573 | 16,672 | ||||||
Current liabilities of discontinued operations |
17,014 | 35,044 | ||||||
Total current liabilities |
145,638 | 100,513 | ||||||
Long-term debt |
— | 52,500 | ||||||
Obligations under capital leases |
5,822 | 6,500 | ||||||
Other long-term obligations |
3,883 | 5,053 | ||||||
Long-term liabilities of discontinued operations |
— | 35,968 | ||||||
Total liabilities |
155,343 | 200,534 | ||||||
Commitments and contingencies |
||||||||
Redeemable noncontrolling interest |
5,812 | 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;
22,262,431 issued and 20,308,070 outstanding at December 31, 2010;
22,423,666 issued and 20,469,305 outstanding at September 30, 2010; |
216 | 216 | ||||||
Paid-in capital |
457,952 | 457,725 | ||||||
Accumulated deficit |
(102,752 | ) | (139,791 | ) | ||||
Accumulated other comprehensive loss |
— | (444 | ) | |||||
Treasury stock, at cost;
1,954,361 shares at December 31 2010 and September 30, 2010 |
(44,797 | ) | (44,797 | ) | ||||
Total MedCath Corporation stockholders’ equity |
310,619 | 272,909 | ||||||
Noncontrolling interest |
9,971 | 9,561 | ||||||
Total equity |
320,590 | 282,470 | ||||||
Total liabilities and equity |
$ | 481,745 | $ | 494,538 | ||||
MEDCATH CORPORATION
SELECTED OPERATING DATA
(In thousands, except per share data and selected operating data)
(Unaudited)
SELECTED OPERATING DATA
(In thousands, except per share data and selected operating data)
(Unaudited)
| Three Months Ended December 31, | ||||||||||||
| 2010 | 2009 | %Change | ||||||||||
Statement of Operations Data: |
||||||||||||
Net revenue |
$ | 88,900 | $ | 87,830 | 1.2 | % | ||||||
Adjusted EBITDA (1) |
$ | 5,805 | $ | 4,846 | 19.8 | % | ||||||
Loss from operations |
$ | (1,581 | ) | $ | (2,663 | ) | 40.6 | % | ||||
Income (loss) from continuing operations, net of taxes |
$ | 7,162 | $ | (1,902 | ) | 476.6 | % | |||||
Income (loss) per share from continuing operations, basic |
$ | 0.36 | $ | (0.09 | ) | 516.0 | % | |||||
Income (loss) per share from continuing operations, diluted |
$ | 0.36 | $ | (0.09 | ) | 516.0 | % | |||||
| (1) | See Supplemental Financial Disclosure-Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures. |
| Three Months Ended December 31, | ||||||||||||
| 2010 | 2009 | % Change | ||||||||||
Selected Operating Data (a): |
||||||||||||
Number of hospitals |
5 | 5 | ||||||||||
Licensed beds ( c ) |
421 | 421 | ||||||||||
Staffed and available beds ( d ) |
380 | 380 | ||||||||||
Admissions ( e ) |
4,438 | 4,482 | (1.0 | )% | ||||||||
Adjusted admissions ( f ) |
6,841 | 6,485 | 5.5 | % | ||||||||
Patient days ( g ) |
16,254 | 16,672 | (2.5 | )% | ||||||||
Adjusted patient days ( h ) |
25,143 | 24,324 | 3.4 | % | ||||||||
Average length of stay (days) ( i ) |
3.66 | 3.72 | (1.6 | )% | ||||||||
Occupancy ( j ) |
46.5 | % | 47.7 | % | ||||||||
Inpatient catheterization procedures ( k ) |
1,792 | 1,964 | (8.8 | )% | ||||||||
Inpatient surgical procedures ( l ) |
1,032 | 1,085 | (4.9 | )% | ||||||||
Hospital net revenue |
$ | 86,618 | $ | 84,382 | 2.6 | % | ||||||
Combined Operating Data (b): |
||||||||||||
Number of hospitals |
6 | 6 | ||||||||||
Licensed beds ( c ) |
533 | 533 | ||||||||||
Staffed and available beds ( d ) |
489 | 488 | ||||||||||
Admissions ( e ) |
6,256 | 6,199 | 0.9 | % | ||||||||
Adjusted admissions ( f ) |
10,165 | 9,667 | 5.2 | % | ||||||||
Patient days ( g ) |
21,729 | 21,827 | (0.4 | )% | ||||||||
Adjusted patient days ( h ) |
35,152 | 33,877 | 3.8 | % | ||||||||
Average length of stay (days) ( i ) |
3.47 | 3.52 | (1.4 | )% | ||||||||
Occupancy ( j ) |
48.3 | % | 48.6 | % | ||||||||
Inpatient catheterization procedures ( k ) |
1,972 | 2,162 | (8.8 | )% | ||||||||
Inpatient surgical procedures ( l ) |
1,451 | 1,445 | 0.4 | % | ||||||||
Hospital net revenue |
$ | 112,719 | $ | 108,647 | 3.7 | % | ||||||
| (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. However, Heart Hospital of South Dakota is excluded from prior year information since the Company disposed of its interest on October 1, 2010. | |
| (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)
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
The following table reconciles the income (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 months ended
December 31, 2010 and 2009.
| Three Months Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
| (in thousands) | ||||||||
Income (loss) from continuing operations, net of taxes attributable to
MedCath Corporation common stockholders |
$ | 7,162 | $ | (1,902 | ) | |||
Add: |
||||||||
Income tax expense (benefit) |
4,482 | (1,337 | ) | |||||
Net income attributable to noncontrolling interest |
2,174 | 1,218 | ||||||
Equity in net earnings of unconsolidated affiliates |
(602 | ) | (1,516 | ) | ||||
Interest and other income, net |
(489 | ) | (70 | ) | ||||
Gain on sale of unconsolidated investees |
(15,391 | ) | — | |||||
Interest expense |
1,082 | 945 | ||||||
Loss on disposal of property, equipment and other
assets |
93 | 96 | ||||||
Depreciation |
4,887 | 5,938 | ||||||
Pre-opening expenses |
— | 866 | ||||||
Share-based compensation expense |
1,932 | 608 | ||||||
Professional fees for strategic options process |
2,562 | — | ||||||
Sales tax refunds, net |
(2,087 | ) | — | |||||
Adjusted EBITDA |
$ | 5,805 | $ | 4,846 | ||||
The following table reconciles MedCath Corporation’s diluted income (loss) 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 for the three months ended December 31, 2010 and 2009.
| Three Months Ended December 31, | ||||||||
| 2010 | 2009 | |||||||
Diluted income (loss) per share |
$ | 0.36 | $ | (0.09 | ) | |||
Add: |
||||||||
Gain on sale of unconsolidated investees |
(0.47 | ) | — | |||||
Professional fees for strategic plans |
0.08 | — | ||||||
Sales tax refunds |
(0.05 | ) | — | |||||
Share-based compensation expense |
0.06 | 0.02 | ||||||
Pre-opening expense |
— | 0.02 | ||||||
Adjusted diluted earnings per share |
$ | (0.02 | ) | $ | (0.05 | ) | ||