Medcath (MDTH) 8-K Results of Operations and Financial Condition

Exhibit 99.1

MEDCATH CORPORATION
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

The following table reconciles the (loss) income 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 six months ended March 31, 2010 and 2009.

	Three Months Ended March 31,						Six Months Ended March 31,
	2010			2009			2010			2009
	(in thousands)						(in thousands)
(Loss) income from continuing operations, net of taxes	$	(11,999	)	$	4,220		$	(15,091	)	$	1,685
Add:
Income tax (benefit) expense		(7,386	)		2,610			(9,287	)		1,115
Net income attributable to noncontrolling interest		2,151			3,767			2,856			5,816
Equity in net earnings of unconsolidated affiliates		(3,206	)		(2,714	)		(4,722	)		(4,779	)
Interest and other income		(23	)		(73	)		(93	)		(172	)
Loss on note receivable		1,507			—			1,507			—
Loss on early extinguishment of debt		—			(259	)		—			6,702
Interest expense		1,149			581			2,207			2,678
(Gain) loss on disposal of property, equipment and other assets		(76	)		108			19			181
Impairment of property and equipment		19,948			—			19,948			—
Impairment of equity method investment		114			—			114			—
Amortization		8			8			16			16
Depreciation		7,768			6,217			15,418			12,713
Pre-opening expenses		—			380			866			587
Share-based compensation expense		1,217			839			1,826			1,837
Adjusted EBITDA	$	11,172		$	15,684		$	15,584		$	28,379

The following table reconciles MedCath Corporation’s diluted (loss) earnings per share from continuing operations attributable to MedCath Corporations common stockholders as derived directly from MedCath’s consolidated financial statements to Adjusted diluted earnings (loss) per share from continuing operations for the three and six months ended March 31, 2010 and 2009.

	Three Months Ended March 31,					Six Months Ended March 31,
	2010			2009		2010			2009
Diluted (loss) earnings per share	$	(0.61	)	$	0.21	$	(0.76	)	$	0.09
Add:
Loss on early extinguishment of debt		—			—		—			0.22
Impairments of property, equipment, and equity method investment		0.62			—		0.62			—
Loss on note receivable		0.05			—		0.05			—
Share-based compensation expense		0.04			0.03		0.06			0.04
Pre-opening expense		—			0.01		0.02			0.02
Adjusted diluted earnings (loss) per share	$	0.10		$	0.25	$	(0.01	)	$	0.37