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

Exhibit 99.1

MEDCATH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Restated for Discontinued Operations
(In thousands, except per share data)
(Unaudited)

	FY2003			FY2004
	YR			Q1			Q2			Q3			Q4			YR
Net revenue	$	542,986		$	155,123		$	168,680		$	176,165		$	178,637		$	678,605
Operating expenses:
Personnel expense		172,318			47,012			52,415			54,818			55,437			209,682
Medical supplies expense		136,681			41,977			45,980			50,983			50,715			189,655
Bad debt expense		26,791			13,788			9,475			9,556			13,218			46,037
Other operating expenses		130,174			31,520			36,595			37,353			35,955			141,423
Pre-opening expenses		7,381			3,016			2,087			—			—			5,103
Depreciation		40,104			9,723			10,430			10,921			10,033			41,107
Amortization		1,441			290			290			290			290			1,160
(Gain)/loss on disposal of property, equipment and other assets		258			(84	)		33			24			114			87
Impairments of goodwill and long-lived assets		58,865			—			—			—			7,227			7,227
		574,013			147,242			157,305			163,945			172,989			641,481
Income (loss) from operations		(31,027	)		7,881			11,375			12,220			5,648			37,124
Other income (expenses):
Interest expense		(25,857	)		(6,320	)		(6,742	)		(6,863	)		(7,839	)		(27,764	)
Interest income		1,358			231			159			211			227			828
Loss on debt refinancing		—			—			—			—			(5,090	)		(5,090	)
Other income, net		206			4			2			7			22			35
Equity in net earnings of unconsolidated affiliates		3,541			577			1,147			900			916			3,540
		(20,752	)		(5,508	)		(5,434	)		(5,745	)		(11,764	)		(28,451	)
Income (loss) from continuing operations before minority interest, income taxes and discontinued operations		(51,779	)		2,373			5,941			6,475			(6,116	)		8,673
Minority interest share of (earnings) losses of consolidated subsidiaries		(6,613	)		(1,091	)		65			(2,852	)		(3,381	)		(7,259	)
Income (loss) from continuing operations before income taxes and discontinued operations		(58,392	)		1,282			6,006			3,623			(9,497	)		1,414
Income tax (benefit) expense		297			517			2,292			1,169			(3,312	)		666
Income (loss) from continuing operations		(58,689	)		765			3,714			2,454			(6,185	)		748
Loss from discontinued operations, net of taxes		(1,617	)		(1,698	)		(1,073	)		(1,074	)		(526	)		(4,371	)
Net income (loss)	$	(60,306	)	$	(933	)	$	2,641		$	1,380		$	(6,711	)	$	(3,623	)
Earnings (loss) per share, basic
Continuing operations	$	(3.26	)	$	0.04		$	0.21		$	0.14		$	(0.34	)	$	0.04
Discontinued operations		(0.09	)		(0.09	)		(0.06	)		(0.06	)		(0.03	)		(0.24	)
Earnings (loss) per share, basic	$	(3.35	)	$	(0.05	)	$	0.15		$	0.08		$	(0.37	)	$	(0.20	)
Earnings (loss) per share, diluted
Continuing operations	$	(3.26	)	$	0.04		$	0.20		$	0.13		$	(0.34	)	$	0.04
Discontinued operations		(0.09	)		(0.09	)		(0.06	)		(0.06	)		(0.03	)		(0.24	)
Earnings (loss) per share, diluted	$	(3.35	)	$	(0.05	)	$	0.14		$	0.07		$	(0.37	)	$	(0.20	)
Weighted average number of shares, basic		17,989			17,949			17,985			17,990			18,014			17,984
Dilutive effect of stock options		—			—			514			826			—			—
Weighted average number of shares, diluted		17,989			17,949			18,499			18,816			18,014			17,984