Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MEDCATH CORP | c20998e8vk.htm |
EXHIBIT 99.1
MEDCATH CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING THE SALE OF HEART HOSPTIAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING THE SALE OF HEART HOSPTIAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
| Twelve Months Ended September 30, 2010 | ||||||||||||||||||||||||
| Reclassification of | ||||||||||||||||||||||||
| MedCath Partners | ||||||||||||||||||||||||
| Company Historical | as a Discontinued | Company Recast | Sale of | Sale of AHH | Company | |||||||||||||||||||
| (1) | Operation (2) | (3) | HHNM (4) | (5) | Pro Forma | |||||||||||||||||||
Net revenue |
$ | 376,926 | $ | (11,440 | ) | $ | 365,486 | $ | (81,232 | ) | $ | (117,843 | ) | $ | 166,411 | |||||||||
Operating expenses: |
||||||||||||||||||||||||
Personnel expense |
128,663 | (3,606 | ) | 125,057 | (22,032 | ) | (36,291 | ) | 66,734 | |||||||||||||||
Medical supplies expense |
91,931 | (461 | ) | 91,470 | (21,213 | ) | (36,847 | ) | 33,410 | |||||||||||||||
Bad debt expense |
40,620 | (22 | ) | 40,598 | (5,438 | ) | (11,355 | ) | 23,805 | |||||||||||||||
Other operating expenses |
91,635 | (4,950 | ) | 86,685 | (17,166 | ) | (16,060 | ) | 53,459 | |||||||||||||||
Pre-opening expenses |
866 | — | 866 | — | — | 866 | ||||||||||||||||||
Depreciation |
23,675 | (3,186 | ) | 20,489 | (2,934 | ) | (5,334 | ) | 12,221 | |||||||||||||||
Amortization |
32 | — | 32 | (32 | ) | — | — | |||||||||||||||||
Impairment of long-lived assets and goodwill |
66,822 | (800 | ) | 66,022 | — | — | 66,022 | |||||||||||||||||
Loss (gain) on disposal of property, equipment and other assets |
(36 | ) | 49 | 13 | (43 | ) | (24 | ) | (54 | ) | ||||||||||||||
Total operating expenses |
444,208 | (12,976 | ) | 431,232 | (68,858 | ) | (105,911 | ) | 256,463 | |||||||||||||||
Income (loss) from operations |
(67,282 | ) | 1,536 | (65,746 | ) | (12,374 | ) | (11,932 | ) | (90,052 | ) | |||||||||||||
Other income (expenses): |
— | — | ||||||||||||||||||||||
Interest expense |
(4,278 | ) | 18 | (4,260 | ) | 311 | 14 | (3,935 | ) | |||||||||||||||
Interest and other income, net |
82 | 112 | 194 | (66 | ) | (41 | ) | 87 | ||||||||||||||||
Loss on note receivable |
(1,507 | ) | — | (1,507 | ) | — | — | (1,507 | ) | |||||||||||||||
Equity in net earnings of unconsolidated affiliates |
7,267 | (1,908 | ) | 5,359 | — | — | 5,359 | |||||||||||||||||
Total other income (expense), net |
1,564 | (1,778 | ) | (214 | ) | 245 | (27 | ) | 4 | |||||||||||||||
Loss from continuing operations before income taxes |
(65,718 | ) | (242 | ) | (65,960 | ) | (12,129 | ) | (11,959 | ) | (90,048 | ) | ||||||||||||
Income tax (expense) benefit |
(26,178 | ) | (93 | ) | (26,271 | ) | (3,687 | ) | (3,347 | ) | (33,305 | ) | ||||||||||||
Loss from continuing operations |
(39,540 | ) | (149 | ) | (39,689 | ) | (8,442 | ) | (8,612 | ) | (56,743 | ) | ||||||||||||
Less: income (loss) attributable to noncontrolling interest |
(12,389 | ) | — | (12,389 | ) | 2,530 | 3,245 | (6,614 | ) | |||||||||||||||
Loss attributable to MedCath Corporation |
$ | (51,929 | ) | $ | (149 | ) | $ | (52,078 | ) | $ | (5,912 | ) | $ | (5,367 | ) | $ | (63,357 | ) | ||||||
| $ | — | $ | — | |||||||||||||||||||||
(Loss) Income from continuing operations attributable to MedCath
Corporation common stockholders, net of taxes |
$ | (50,485 | ) | $ | (149 | ) | $ | (50,634 | ) | $ | (5,912 | ) | $ | (5,367 | ) | $ | (61,913 | ) | ||||||
Loss per share, basic |
$ | (2.55 | ) | $ | (0.01 | ) | $ | (2.55 | ) | $ | (0.30 | ) | $ | (0.27 | ) | $ | (3.12 | ) | ||||||
Loss per share, diluted |
$ | (2.55 | ) | $ | (0.01 | ) | $ | (2.55 | ) | $ | (0.30 | ) | $ | (0.27 | ) | $ | (3.12 | ) | ||||||
Weighted average number of shares, basic |
19,842 | 19,842 | 19,842 | 19,842 | 19,842 | 19,842 | ||||||||||||||||||
Dilutive effect of stock options and restricted stock |
— | — | — | — | — | — | ||||||||||||||||||
Weighted average number of shares, diluted |
19,842 | 19,842 | 19,842 | 19,842 | 19,842 | 19,842 | ||||||||||||||||||
| (1) | As reported in the Company’s Form 8-K on May 27, 2011. |
|
| (2) | Includes the historical results of MedCath Partners, which was
effective May 1, 2011. The reclassification does not include the
proforma effects of the net gain related to the sale as it would be
reported in discontinued operations. |
|
| (3) | Represents the Company’s historical financial statements recast to exclude the historical
operations of MedCath Partners. |
|
| (4) | Impact of the August 1, 2011 sale of Heart Hospital of New Mexico as though the sale occurred at the
beginning of the reporting period. |
|
| (5) | Impact of the August 1, 2011 sale of Arkansas Heart Hospital as though the sale occurred at the
beginning of the reporting period. |
MEDCATH CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING HEART HOSPTIAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING HEART HOSPTIAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
| Twelve Months Ended September 30, 2009 | ||||||||||||||||||||||||
| Reclassification of | ||||||||||||||||||||||||
| MedCath Partners | ||||||||||||||||||||||||
| Company | as a Discontinued | Company Recast | Sale of | Sale of AHH | Company | |||||||||||||||||||
| Historical (1) | Operation (2) | (3) | HHNM (4) | (5) | Pro Forma | |||||||||||||||||||
Net revenue |
$ | 343,849 | $ | (16,645 | ) | $ | 327,204 | $ | (75,425 | ) | $ | (117,650 | ) | $ | 134,129 | |||||||||
Operating expenses: |
||||||||||||||||||||||||
Personnel expense |
114,893 | (6,187 | ) | 108,706 | (21,295 | ) | (36,346 | ) | 51,065 | |||||||||||||||
Medical supplies expense |
84,366 | (794 | ) | 83,572 | (19,576 | ) | (34,860 | ) | 29,136 | |||||||||||||||
Bad debt expense |
33,177 | (25 | ) | 33,152 | (5,303 | ) | (13,058 | ) | 14,791 | |||||||||||||||
Other operating expenses |
77,000 | (6,435 | ) | 70,565 | (17,366 | ) | (15,470 | ) | 37,729 | |||||||||||||||
Pre-opening expenses |
3,563 | — | 3,563 | — | — | 3,563 | ||||||||||||||||||
Depreciation |
19,299 | (3,849 | ) | 15,450 | (2,824 | ) | (5,150 | ) | 7,476 | |||||||||||||||
Amortization |
891 | (859 | ) | 32 | (32 | ) | — | — | ||||||||||||||||
Impairment of long-lived assets and goodwill |
42,000 | — | 42,000 | (14,000 | ) | (11,000 | ) | 17,000 | ||||||||||||||||
Loss (gain) on disposal of property, equipment and other assets |
93 | 32 | 125 | (91 | ) | 4 | 38 | |||||||||||||||||
Total operating expenses |
375,282 | (18,117 | ) | 357,165 | (80,487 | ) | (115,880 | ) | 160,798 | |||||||||||||||
Income (loss) from operations |
(31,433 | ) | 1,472 | (29,961 | ) | 5,062 | (1,770 | ) | (26,669 | ) | ||||||||||||||
Other income (expenses): |
— | — | — | — | ||||||||||||||||||||
Interest expense |
(3,184 | ) | 13 | (3,171 | ) | 117 | 1 | (3,053 | ) | |||||||||||||||
Interest and other income, net |
214 | (5 | ) | 209 | (21 | ) | (11 | ) | 177 | |||||||||||||||
Loss on early extinguishment of debt |
(6,702 | ) | — | (6,702 | ) | — | — | (6,702 | ) | |||||||||||||||
Equity in net earnings of unconsolidated affiliates |
9,057 | (3,785 | ) | 5,272 | — | — | 5,272 | |||||||||||||||||
Total other income (expense), net |
(615 | ) | (3,777 | ) | (4,392 | ) | 96 | (10 | ) | (4,306 | ) | |||||||||||||
Loss from before income taxes |
(32,048 | ) | (2,305 | ) | (34,353 | ) | 5,158 | (1,780 | ) | (30,975 | ) | |||||||||||||
Income tax benefit |
(169 | ) | (877 | ) | (1,046 | ) | (2,746 | ) | (3,602 | ) | (7,394 | ) | ||||||||||||
Loss from continuing operations |
(31,879 | ) | (1,428 | ) | (33,307 | ) | 7,904 | 1,822 | (23,581 | ) | ||||||||||||||
Less: Net income attributable to noncontrolling interest |
(17,527 | ) | 21 | (17,506 | ) | 1,694 | 3,401 | (12,411 | ) | |||||||||||||||
Loss income attributable to MedCath Corporation |
$ | (49,406 | ) | $ | (1,407 | ) | $ | (50,813 | ) | $ | 9,598 | $ | 5,223 | $ | (35,992 | ) | ||||||||
Loss Income from continuing operations attributable to MedCath
Corporation common stockholders, net of taxes |
$ | (41,252 | ) | $ | (1,407 | ) | $ | (42,659 | ) | $ | 9,598 | $ | 5,223 | $ | (27,838 | ) | ||||||||
Loss per share, basic |
$ | (2.09 | ) | $ | (0.07 | ) | $ | (2.17 | ) | $ | 0.49 | $ | 0.27 | $ | (1.41 | ) | ||||||||
Loss per share, diluted |
$ | (2.09 | ) | $ | (0.07 | ) | $ | (2.17 | ) | $ | 0.49 | $ | 0.27 | $ | (1.41 | ) | ||||||||
Weighted average number of shares, basic |
19,684 | 19,684 | 19,684 | 19,684 | 19,684 | 19,684 | ||||||||||||||||||
Dilutive effect of stock options and restricted stock |
— | — | — | — | — | — | ||||||||||||||||||
Weighted average number of shares, diluted |
19,684 | 19,684 | 19,684 | 19,684 | 19,684 | 19,684 | ||||||||||||||||||
| (1) | As reported in the Company’s Form 8-K on May 27, 2011. |
|
| (2) | Includes the historical results of MedCath Partners, which was
effective May 1, 2011. The reclassification does not include the
proforma effects of the net gain related to the sale as it would be
reported in discontinued operations. |
|
| (3) | Represents the Company’s historical financial statements recast to exclude the historical
operations of MedCath Partners. |
|
| (4) | Impact of the August 1, 2011 sale of Heart Hospital of New Mexico as though the sale occurred at the
beginning of the reporting period. |
|
| (5) | Impact of the August 1, 2011 sale of Arkansas Heart Hospital as though the sale occurred at the
beginning of the reporting period. |
MEDCATH CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
| Three Months Ended March 31, 2011 | ||||||||||||||||||||||||
| Reclassification | ||||||||||||||||||||||||
| of MedCath | ||||||||||||||||||||||||
| Partners as a | ||||||||||||||||||||||||
| Company | Discontinued | Company Recast | Sale of | Sale of | Company | |||||||||||||||||||
| Historical (1) | Operation (2) | (3) | HHNM (4) | AHH (5) | Pro Forma | |||||||||||||||||||
Net revenue |
$ | 97,163 | $ | (2,057 | ) | $ | 95,106 | $ | (18,991 | ) | $ | (32,216 | ) | $ | 43,899 | |||||||||
Operating expenses: |
||||||||||||||||||||||||
Personnel expense |
33,859 | (642 | ) | 33,217 | (5,510 | ) | (9,397 | ) | 18,310 | |||||||||||||||
Medical supplies expense |
23,189 | (33 | ) | 23,156 | (4,986 | ) | (9,523 | ) | 8,647 | |||||||||||||||
Bad debt expense |
10,006 | (1 | ) | 10,005 | (1,071 | ) | (2,961 | ) | 5,973 | |||||||||||||||
Other operating expenses |
22,843 | (569 | ) | 22,274 | (4,260 | ) | (3,729 | ) | 14,285 | |||||||||||||||
Depreciation |
4,630 | (562 | ) | 4,068 | (794 | ) | (1,120 | ) | 2,154 | |||||||||||||||
Amortization |
— | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Impairment of long-lived assets and goodwill |
19,548 | — | 19,548 | — | — | 19,548 | ||||||||||||||||||
Loss (gain) on disposal of property, equipment and other assets |
178 | 5 | 183 | (6 | ) | — | 177 | |||||||||||||||||
Total operating expenses |
114,253 | (1,802 | ) | 112,451 | (16,635 | ) | (26,730 | ) | 69,086 | |||||||||||||||
Loss from operations |
(17,090 | ) | (255 | ) | (17,345 | ) | (2,356 | ) | (5,486 | ) | (25,187 | ) | ||||||||||||
Other income (expenses): |
— | — | ||||||||||||||||||||||
Interest expense |
(997 | ) | 15 | (982 | ) | 90 | 3 | (889 | ) | |||||||||||||||
Interest and other income, net |
50 | — | 50 | (8 | ) | — | 42 | |||||||||||||||||
Gain on sale of unconsolidated affiliates |
179 | — | 179 | — | — | 179 | ||||||||||||||||||
Equity in net earnings of unconsolidated affiliates |
1,258 | (213 | ) | 1,045 | — | — | 1,045 | |||||||||||||||||
Total other income (expense), net |
490 | (198 | ) | 292 | 82 | 3 | 377 | |||||||||||||||||
Loss from continuing operations before income taxes |
(16,600 | ) | (453 | ) | (17,053 | ) | (2,274 | ) | (5,483 | ) | (24,810 | ) | ||||||||||||
Income tax benefit |
(7,695 | ) | (185 | ) | (7,880 | ) | (692 | ) | (1,508 | ) | (10,080 | ) | ||||||||||||
Loss from continuing operations |
(8,905 | ) | (268 | ) | (9,173 | ) | (1,582 | ) | (3,975 | ) | (14,730 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interest |
(3,189 | ) | (29 | ) | (3,218 | ) | 473 | 1,558 | (1,187 | ) | ||||||||||||||
Loss attributable to MedCath Corporation |
$ | (12,094 | ) | $ | (297 | ) | $ | (12,391 | ) | $ | (1,109 | ) | $ | (2,417 | ) | $ | (15,917 | ) | ||||||
Loss from continuing operations attributable to MedCath Corporation
common stockholders, net of taxes |
$ | (12,341 | ) | $ | (297 | ) | $ | (12,638 | ) | $ | (1,109 | ) | $ | (2,417 | ) | $ | (16,164 | ) | ||||||
Loss per share, basic |
$ | (0.61 | ) | $ | (0.01 | ) | $ | (0.63 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.80 | ) | ||||||
Loss per share, diluted |
$ | (0.61 | ) | $ | (0.01 | ) | $ | (0.63 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.80 | ) | ||||||
Weighted average number of shares, basic |
20,208 | 20,208 | 20,208 | 20,208 | 20,208 | 20,208 | ||||||||||||||||||
Dilutive effect of stock options and restricted stock |
— | — | — | — | — | — | ||||||||||||||||||
Weighted average number of shares, diluted |
20,208 | 20,208 | 20,208 | 20,208 | 20,208 | 20,208 | ||||||||||||||||||
| (1) | As reported in the Company’s Form 8-K on May 27, 2011. |
|
| (2) | Includes the historical results of MedCath Partners, which was
effective May 1, 2011. The reclassification does not include the
proforma effects of the net gain related to the sale as it would be
reported in discontinued operations. |
|
| (3) | Represents the Company’s historical financial statements recast to exclude the historical
operations of MedCath Partners. |
|
| (4) | Impact of the August 1, 2011 sale of Heart Hospital of New Mexico as though the sale occurred at the
beginning of the reporting period. |
|
| (5) | Impact of the August 1, 2011 sale of Arkansas Heart Hospital as though the sale occurred at the
beginning of the reporting period. |
MEDCATH CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
| Three Months Ended March 31, 2010 | ||||||||||||||||||||||||
| Reclassification | ||||||||||||||||||||||||
| of MedCath | ||||||||||||||||||||||||
| Company | Partners as a | |||||||||||||||||||||||
| Historical | Discontinued | Company | Sale of | Sale of AHH | Company | |||||||||||||||||||
| (1) | Operation (2) | Recast (3) | HHNM (4) | (5) | Pro Forma | |||||||||||||||||||
Net revenue |
$ | 96,777 | $ | (2,785 | ) | $ | 93,992 | $ | (21,031 | ) | $ | (29,139 | ) | $ | 43,822 | |||||||||
Operating expenses: |
||||||||||||||||||||||||
Personnel expense |
33,150 | (951 | ) | 32,199 | (5,455 | ) | (9,067 | ) | 17,677 | |||||||||||||||
Medical supplies expense |
23,581 | (150 | ) | 23,431 | (5,688 | ) | (8,943 | ) | 8,800 | |||||||||||||||
Bad debt expense |
9,931 | (13 | ) | 9,918 | (1,213 | ) | (2,690 | ) | 6,015 | |||||||||||||||
Other operating expenses |
22,296 | (1,151 | ) | 21,145 | (4,446 | ) | (3,775 | ) | 12,924 | |||||||||||||||
Pre-opening expenses |
— | — | — | — | — | — | ||||||||||||||||||
Depreciation |
6,124 | (785 | ) | 5,339 | (604 | ) | (1,355 | ) | 3,380 | |||||||||||||||
Impairment of long-lived assets and goodwill |
14,700 | (114 | ) | 14,586 | — | — | 14,586 | |||||||||||||||||
Loss (gain) on disposal of property, equipment and other assets |
(69 | ) | 76 | 7 | (8 | ) | (7 | ) | (8 | ) | ||||||||||||||
Total operating expenses |
109,713 | (3,088 | ) | 106,625 | (17,414 | ) | (25,837 | ) | 63,374 | |||||||||||||||
(Loss) income from operations |
(12,936 | ) | 303 | (12,633 | ) | (3,617 | ) | (3,302 | ) | (19,552 | ) | |||||||||||||
Other income (expenses): |
— | — | ||||||||||||||||||||||
Interest expense |
(1,054 | ) | — | (1,054 | ) | 40 | 3 | (1,011 | ) | |||||||||||||||
Interest and other income, net |
15 | — | 15 | (8 | ) | 6 | 13 | |||||||||||||||||
Gain on sale of unconsolidated affiliates |
— | — | — | — | — | — | ||||||||||||||||||
Loss on note receivable |
(1,507 | ) | — | (1,507 | ) | — | — | (1,507 | ) | |||||||||||||||
Equity in net earnings of unconsolidated affiliates |
3,092 | (1,488 | ) | 1,604 | — | — | 1,604 | |||||||||||||||||
Total other income (expense), net |
546 | (1,488 | ) | (942 | ) | 32 | 9 | (901 | ) | |||||||||||||||
Loss from continuing operations before income taxes |
(12,390 | ) | (1,185 | ) | (13,575 | ) | (3,585 | ) | (3,293 | ) | (20,453 | ) | ||||||||||||
Income tax benefit |
(5,639 | ) | (455 | ) | (6,094 | ) | (1,082 | ) | (919 | ) | (8,095 | ) | ||||||||||||
Loss from continuing operations |
(6,751 | ) | (730 | ) | (7,481 | ) | (2,503 | ) | (2,374 | ) | (12,358 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interest |
(2,524 | ) | (2,663 | ) | (5,187 | ) | 769 | 900 | (3,518 | ) | ||||||||||||||
Net (loss) income attributable to MedCath Corporation |
$ | (9,275 | ) | $ | 1,933 | $ | (12,668 | ) | $ | (1,734 | ) | $ | (1,474 | ) | $ | (15,876 | ) | |||||||
(Loss) Income from continuing operations attributable to MedCath
Corporation common stockholders, net of taxes |
$ | (8,970 | ) | $ | 1,933 | $ | (7,037 | ) | $ | (1,734 | ) | $ | (1,474 | ) | $ | (10,245 | ) | |||||||
(Loss) Income per share, basic |
$ | (0.45 | ) | $ | 0.10 | $ | (0.35 | ) | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.52 | ) | |||||||
(Loss) Income per share, diluted |
$ | (0.45 | ) | $ | 0.10 | $ | (0.35 | ) | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.52 | ) | |||||||
Weighted average number of shares, basic |
19,829 | 19,829 | 19,829 | 19,829 | 19,829 | 19,829 | ||||||||||||||||||
Dilutive effect of stock options and restricted stock |
— | — | — | — | — | — | ||||||||||||||||||
Weighted average number of shares, diluted |
19,829 | 19,829 | 19,829 | 19,829 | 19,829 | 19,829 | ||||||||||||||||||
| (1) | As reported in the Company’s Form 8-K on May 27, 2011. |
|
| (2) | Includes the historical results of MedCath Partners, which was effective May 1,
2011. The reclassification does not include the proforma effects of the net gain
related to the sale as it would be reported in discontinued operations. |
|
| (3) | Represents the Company’s historical financial statements recast to exclude the historical
operations of MedCath Partners. |
|
| (4) | Impact of the August 1, 2011 sale of Heart Hospital of New Mexico as though the sale occurred at the
beginning of the reporting period. |
|
| (5) | Impact of the August 1, 2011 sale of Arkansas Heart Hospital as though the sale occurred at the
beginning of the reporting period. |
MEDCATH CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
| Six Months Ended March 31, 2011 | ||||||||||||||||||||||||
| Reclassification | ||||||||||||||||||||||||
| of MedCath | ||||||||||||||||||||||||
| Partners as a | ||||||||||||||||||||||||
| Company | Discontinued | Company Recast | Sale of | Sale of | Company | |||||||||||||||||||
| Historical (1) | Operation (2) | (3) | HHNM (4) | AHH (5) | Pro Forma | |||||||||||||||||||
Net revenue |
$ | 186,063 | $ | (4,285 | ) | $ | 181,778 | $ | (38,604 | ) | $ | (60,435 | ) | $ | 82,739 | |||||||||
Operating expenses: |
||||||||||||||||||||||||
Personnel expense |
66,313 | (1,337 | ) | 64,976 | (10,763 | ) | (18,158 | ) | 36,055 | |||||||||||||||
Medical supplies expense |
42,411 | (56 | ) | 42,355 | (9,386 | ) | (16,238 | ) | 16,731 | |||||||||||||||
Bad debt expense |
19,715 | — | 19,715 | (2,817 | ) | (5,299 | ) | 11,599 | ||||||||||||||||
Other operating expenses |
46,959 | (1,402 | ) | 45,557 | (8,495 | ) | (8,664 | ) | 28,398 | |||||||||||||||
Depreciation |
9,517 | (1,170 | ) | 8,347 | (1,615 | ) | (2,323 | ) | 4,409 | |||||||||||||||
Amortization |
— | — | — | (16 | ) | — | (16 | ) | ||||||||||||||||
Impairment of long-lived assets and goodwill |
19,548 | (209 | ) | 19,339 | — | — | 19,339 | |||||||||||||||||
Loss (gain) on disposal of property, equipment and other assets |
271 | (21 | ) | 250 | (7 | ) | (23 | ) | 220 | |||||||||||||||
Total operating expenses |
204,734 | (4,195 | ) | 200,539 | (33,099 | ) | (50,705 | ) | 116,735 | |||||||||||||||
Loss from operations |
(18,671 | ) | (90 | ) | (18,761 | ) | (5,505 | ) | (9,730 | ) | (33,996 | ) | ||||||||||||
Other income (expenses): |
— | — | ||||||||||||||||||||||
Interest expense |
(2,079 | ) | — | (2,079 | ) | 188 | 6 | (1,885 | ) | |||||||||||||||
Interest and other income, net |
539 | 31 | 570 | (18 | ) | (406 | ) | 146 | ||||||||||||||||
Gain on sale of unconsolidated affiliates |
15,570 | — | 15,570 | — | — | 15,570 | ||||||||||||||||||
Equity in net earnings of unconsolidated affiliates |
1,860 | (693 | ) | 1,167 | — | — | 1,167 | |||||||||||||||||
Total other income (expense), net |
15,890 | (662 | ) | 15,228 | 170 | (400 | ) | 14,998 | ||||||||||||||||
Loss from continuing operations before income taxes |
(2,781 | ) | (752 | ) | (3,533 | ) | (5,335 | ) | (10,130 | ) | (18,998 | ) | ||||||||||||
Income tax benefit |
(3,213 | ) | (300 | ) | (3,513 | ) | (1,611 | ) | (2,790 | ) | (7,914 | ) | ||||||||||||
Income (Loss) from continuing operations |
432 | (452 | ) | (20 | ) | (3,724 | ) | (7,340 | ) | (11,084 | ) | |||||||||||||
Less: Net income attributable to noncontrolling interest |
(14,615 | ) | (29 | ) | (14,644 | ) | 1,142 | 2,865 | (10,637 | ) | ||||||||||||||
Loss attributable to MedCath Corporation |
$ | (14,183 | ) | $ | (481 | ) | $ | (14,664 | ) | $ | (2,582 | ) | $ | (4,475 | ) | $ | (21,721 | ) | ||||||
Loss from continuing operations attributable to MedCath Corporation
common stockholders, net of taxes |
$ | (5,179 | ) | $ | (481 | ) | $ | (5,660 | ) | $ | (2,582 | ) | $ | (4,475 | ) | $ | (12,717 | ) | ||||||
Loss per share, basic |
$ | (0.26 | ) | $ | (0.02 | ) | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.22 | ) | $ | (0.63 | ) | ||||||
Loss per share, diluted |
$ | (0.26 | ) | $ | (0.02 | ) | $ | (0.28 | ) | $ | (0.13 | ) | $ | (0.22 | ) | $ | (0.63 | ) | ||||||
Weighted average number of shares, basic |
20,075 | 20,075 | 20,075 | 20,075 | 20,075 | 20,075 | ||||||||||||||||||
Dilutive effect of stock options and restricted stock |
6 | 6 | 6 | 6 | 6 | 6 | ||||||||||||||||||
Weighted average number of shares, diluted |
20,081 | 20,081 | 20,081 | 20,081 | 20,081 | 20,081 | ||||||||||||||||||
| (1) | As reported in the Company’s Form 8-K on May 27, 2011. |
|
| (2) | Includes the historical results of MedCath Partners, which was effective
May 1, 2011. The reclassification does not include the proforma effects of
the net gain related to the sale as it would be reported in discontinued
operations. |
|
| (3) | Represents the Company’s historical financial statements recast to exclude the historical
operations of MedCath Partners. |
|
| (4) | Impact of the August 1, 2011 sale of Heart Hospital of New Mexico as though the sale occurred at the
beginning of the reporting period. |
|
| (5) | Impact of the August 1, 2011 sale of Arkansas Heart Hospital as though the sale occurred at the
beginning of the reporting period. |
MEDCATH CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
REFLECTING SALE OF HEART HOSPITAL OF NEW MEXICO & ARKANSAS HEART HOSPITAL
(In thousands, except per share data)
| Six Months Ended March 31, 2010 | ||||||||||||||||||||||||
| Reclassification | ||||||||||||||||||||||||
| of MedCath | ||||||||||||||||||||||||
| Company | Partners as a | |||||||||||||||||||||||
| Historical | Discontinued | Company | Sale of | Sale of AHH | Company | |||||||||||||||||||
| (1) | Operation (2) | Recast (3) | HHNM (4) | (5) | Pro Forma | |||||||||||||||||||
Net revenue |
$ | 184,607 | $ | (6,121 | ) | $ | 178,486 | $ | (41,145 | ) | $ | (54,673 | ) | $ | 82,668 | |||||||||
Operating expenses: |
||||||||||||||||||||||||
Personnel expense |
64,786 | (1,926 | ) | 62,860 | (11,062 | ) | (17,912 | ) | 33,886 | |||||||||||||||
Medical supplies expense |
45,688 | (309 | ) | 45,379 | (10,921 | ) | (17,996 | ) | 16,462 | |||||||||||||||
Bad debt expense |
17,437 | (23 | ) | 17,414 | (2,764 | ) | (3,436 | ) | 11,214 | |||||||||||||||
Other operating expenses |
44,640 | (2,550 | ) | 42,090 | (8,701 | ) | (7,753 | ) | 25,636 | |||||||||||||||
Pre-opening expenses |
866 | — | 866 | — | — | 866 | ||||||||||||||||||
Depreciation |
12,064 | (1,681 | ) | 10,383 | (1,227 | ) | (2,719 | ) | 6,437 | |||||||||||||||
Impairment of long-lived assets and goodwill |
14,700 | (114 | ) | 14,586 | — | — | 14,586 | |||||||||||||||||
Loss (gain) on disposal of property, equipment and other assets |
27 | 4 | 31 | (8 | ) | (24 | ) | (1 | ) | |||||||||||||||
Total operating expenses |
200,208 | (6,599 | ) | 193,609 | (34,683 | ) | (49,840 | ) | 109,086 | |||||||||||||||
(Loss) income from operations |
(15,601 | ) | 478 | (15,123 | ) | (6,462 | ) | (4,833 | ) | (26,418 | ) | |||||||||||||
Other income (expenses): |
— | — | ||||||||||||||||||||||
Interest expense |
(1,999 | ) | 1 | (1,998 | ) | 99 | 7 | (1,892 | ) | |||||||||||||||
Interest and other income, net |
85 | — | 85 | (17 | ) | — | 68 | |||||||||||||||||
Gain on sale of unconsolidated affiliates |
— | — | — | — | — | — | ||||||||||||||||||
Loss on not receivable |
(1,507 | ) | — | (1,507 | ) | — | — | (1,507 | ) | |||||||||||||||
Equity in net earnings of unconsolidated affiliates |
4,608 | (2,129 | ) | 2,479 | — | — | 2,479 | |||||||||||||||||
Total other income (expense), net |
1,187 | (2,128 | ) | (941 | ) | 82 | 7 | (852 | ) | |||||||||||||||
Loss from continuing operations before income taxes |
(14,414 | ) | (1,650 | ) | (16,064 | ) | (6,380 | ) | (4,826 | ) | (27,270 | ) | ||||||||||||
Income tax benefit |
(6,976 | ) | (634 | ) | (7,610 | ) | (1,937 | ) | (1,361 | ) | (10,908 | ) | ||||||||||||
Loss from continuing operations |
(7,438 | ) | (1,016 | ) | (8,454 | ) | (4,443 | ) | (3,465 | ) | (16,362 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interest |
(3,064 | ) | (2,663 | ) | (5,727 | ) | 1,337 | 1,283 | (3,107 | ) | ||||||||||||||
Loss attributable to MedCath Corporation |
$ | (10,502 | ) | $ | (3,679 | ) | $ | (14,181 | ) | $ | (3,106 | ) | $ | (2,182 | ) | $ | (19,469 | ) | ||||||
Loss from continuing operations attributable to MedCath Corporation
common stockholders, net of taxes |
$ | (10,872 | ) | $ | (3,679 | ) | $ | (14,551 | ) | $ | (3,106 | ) | $ | (2,182 | ) | $ | (19,839 | ) | ||||||
Loss per share, basic |
$ | (0.55 | ) | $ | (0.19 | ) | $ | (0.74 | ) | $ | (0.16 | ) | $ | (0.11 | ) | $ | (1.00 | ) | ||||||
Loss per share, diluted |
$ | (0.55 | ) | $ | (0.19 | ) | $ | (0.74 | ) | $ | (0.16 | ) | $ | (0.11 | ) | $ | (1.00 | ) | ||||||
Weighted average number of shares, basic |
19,786 | 19,786 | 19,786 | 19,786 | 19,786 | 19,786 | ||||||||||||||||||
Dilutive effect of stock options and restricted stock |
— | — | — | — | — | — | ||||||||||||||||||
Weighted average number of shares, diluted |
19,786 | 19,786 | 19,786 | 19,786 | 19,786 | 19,786 | ||||||||||||||||||
| (1) | As reported in the Company’s Form 8-K on May 27, 2011. |
|
| (2) | Includes the historical results of MedCath Partners, which was effective May 1,
2011. The reclassification does not include the proforma effects of the net gain
related to the sale as it would be reported in discontinued operations. |
|
| (3) | Represents the Company’s historical financial statements recast to exclude the historical
operations of MedCath Partners. |
|
| (4) | Impact of the August 1, 2011 sale of Heart Hospital of New Mexico as though the sale occurred at the
beginning of the reporting period. |
|
| (5) | Impact of the August 1, 2011 sale of Arkansas Heart Hospital as though the sale occurred at the
beginning of the reporting period. |