Medcath (MDTH) 8-K Regulation FD Disclosure

Exhibit 99.2

MEDCATH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

			Three Months Ended September 30,						Year Ended September 30,
			2003			2002			2003			2002
Net revenue			$	144,355		$	110,473		$	542,986		$	477,637
Operating expenses:
	Personnel expense			45,473			33,460			172,318			138,067
	Medical supplies expense			38,395			25,924			136,681			108,896
	Bad debt expense			10,206			4,598			26,791			22,319
	Other operating expenses			34,426			25,743			130,173			107,636
	Pre-opening expenses			3,046			4,227			10,095			8,339
	Depreciation			9,983			8,891			40,104			35,276
	Amortization			285			307			1,441			2,367
	Loss (gain) on disposal of property, equipment and other assets			164			(55	)		258			(1,047	)
	Impairment of goodwill			58,865			—			58,865			—
		Total operating expenses		200,843			103,095			576,726			421,853
Income (loss) from operations				(56,488	)		7,378			(33,740	)		55,784
Other income (expenses):
	Interest expense			(6,953	)		(5,833	)		(25,857	)		(23,596	)
	Interest income			270			563			1,373			2,337
	Other income, net			10			124			206			190
	Equity in net earnings of unconsolidated affiliates			648			593			3,541			3,007
		Total other expenses, net		(6,025	)		(4,553	)		(20,737	)		(18,062	)
Income (loss) before minority interest and income taxes				(62,513	)		2,825			(54,477	)		37,722
Minority interest share of earnings of consolidated subsidiaries				(534	)		(1,231	)		(5,524	)		(10,451	)
Income (loss) before income taxes				(63,047	)		1,594			(60,001	)		27,271
Income tax benefit (expense)				986			(198	)		(305	)		(2,920	)
Net income (loss)			$	(62,061	)	$	1,396		$	(60,306	)	$	24,351
Earnings (Net loss) per share, basic:			$	(3.46	)	$	0.08		$	(3.35	)	$	1.35
Earnings (Net loss) per share, diluted:			$	(3.46	)	$	0.08		$	(3.35	)	$	1.34
Weighted average number of shares, basic				17,943			18,012			17,989			18,012
	Dilutive effect of stock options			—			92			—			105
Weighted average number of shares, diluted				17,943			18,104			17,989			18,117

MEDCATH CORPORATION
Supplemental Financial Disclosure — Reconciliation of Non-GAAP Financial Measures
to GAAP Financial Measures

     The following table reconciles Adjusted EBITDA and Adjusted EBITDA, before pre-opening expenses with MedCath’s net income (loss) as derived directly from MedCath’s consolidated financial statements for the three months and twelve months ended September 30, 2003 and 2002.

		Three Months Ended September 30,						Year Ended September 30,
		2003			2002			2003			2002
		(in thousands)
Net income (loss)		$	(62,061	)	$	1,396		$	(60,306	)	$	24,351
Add:
	Income tax expense (benefit)		(986	)		198			305			2,920
	Minority interest share of earnings of consolidated subsidiaries		534			1,231			5,524			10,451
	Equity in net earnings of unconsolidated affiliates		(648	)		(593	)		(3,541	)		(3,007	)
	Other income, net		(10	)		(124	)		(206	)		(190	)
	Interest income		(270	)		(563	)		(1,373	)		(2,337	)
	Interest expense		6,953			5,833			25,857			23,596
	Impairment of goodwill		58,865			—			58,865			—
	Loss (gain) on disposal of property, equipment and other assets		164			(55	)		258			(1,047	)
	Amortization		285			307			1,441			2,367
	Depreciation		9,983			8,891			40,104			35,276
Adjusted EBITDA		$	12,809		$	16,521		$	66,928		$	92,380
Add:
	Pre-opening expenses		3,046			4,227			10,095			8,339
Adjusted EBITDA, before pre-opening expenses		$	15,855		$	20,748		$	77,023		$	100,719

MEDCATH CORPORATION
SELECTED OPERATING DATA
(In thousands, except per share data and selected operating data)

	Three Months Ended September 30,								Year Ended September 30,
	2003			2002		% Change			2003			2002		% Change
Statement of Operations Data:
Net revenue	$	144,355		$	110,473		30.7	%	$	542,986		$	477,637		13.7	%
Adjusted EBITDA (a)	$	12,809		$	16,521		(22.5	)%	$	66,928		$	92,380		(27.6	)%
Adjusted EBITDA, before pre-opening expenses (a)	$	15,855		$	20,748		(23.6	)%	$	77,023		$	100,719		(23.5	)%
Income (loss) from operations	$	(56,488	)	$	7,378		(865.6	)%	$	(33,740	)	$	55,784		(160.5	)%
Net income (loss)	$	(62,061	)	$	1,396		(4545.6	)%	$	(60,306	)	$	24,351		(347.7	)%
Net income (loss) per share, diluted	$	(3.46	)	$	0.08		(4425.0	)%	$	(3.35	)	$	1.34		(350.0	)%

(a)   Supplemental Financial Disclosure — Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures.

	Three Months Ended September 30,									Year Ended September 30,
	2003			2002			% Change			2003			2002			% Change
Selected Operating Data (consolidated):
Number of hospitals		9			7						9			7
Licensed beds (a)		580			410						580			410
Staffed and available beds (b)		499			396						493			404
Admissions (c)		9,186			6,404			43.4	%		32,998			28,535			15.6	%
Adjusted admissions (d)		11,621			8,022			44.9	%		41,213			34,699			18.8	%
Patient days (e)		31,478			22,840			37.8	%		117,615			106,118			10.8	%
Average length of stay (days) (f)		3.43			3.57			(3.9	)%		3.56			3.72			(4.3	)%
Occupancy (g)		68.6	%		62.7	%					65.4	%		72.0	%
Inpatient Catheterization Procedures		4,724			3,711			27.3	%		17,537			15,839			10.7	%
Inpatient Surgical Procedures		2,267			1,698			33.5	%		8,750			7,288			20.1	%
Hospital Division revenue	$	129,434		$	94,080			37.6	%	$	476,971		$	399,872			19.3	%

	Three Months Ended September 30,									Year Ended September 30,
	2003			2002			% Change			2003			2002			% Change
Selected Operating Data (same facility):
Number of hospitals		7			7						7			7
Licensed beds (a)		410			410						410			410
Staffed and available beds (b)		410			396						404			404
Admissions (c)		7,363			6,404			15.0	%		28,277			28,535			(0.9	)%
Adjusted admissions (d)		9,050			8,022			12.8	%		34,656			34,699			(0.1	)%
Patient days (e)		25,901			22,840			13.4	%		101,962			106,118			(3.9	)%
Average length of stay (days) (f)		3.52			3.57			(1.4	)%		3.61			3.72			(3.0	)%
Occupancy (g)		68.7	%		62.7	%					69.1	%		72.0	%
Inpatient Catheterization Procedures		4,354			3,711			17.3	%		16,585			15,839			4.7	%
Inpatient Surgical Procedures		1,889			1,698			11.2	%		7,753			7,288			6.4	%
Hospital Division revenue	$	105,596		$	94,080			12.2	%	$	418,140		$	399,872			4.6	%

(a)	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.
(b)	Staffed and available beds represent the weighted average number of beds that are readily available for patient use during the period.
(c)	Admissions represent the number of patients admitted for inpatient treatment
(d)	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.
(e)	Patient days represent the total number of days of care provided to inpatients.
(f)	Average length of stay (days) represents the average number of days inpatients stay in our hospital.
(g)	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.