Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MEDCATH CORP | c21204e8vk.htm |
| EX-99.1 - EXHIBIT 99.1 - MEDCATH CORP | c21204exv99w1.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 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)
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)
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)
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 | ) | |||||