Exhibit 99.2
MEDCATH CORPORATION
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
Restated for Discontinued Operations
(Unaudited)
The following table reconciles Adjusted EBITDA with MedCath’s income from continuing operations as derived from MedCath’s consolidated statements of operations:
| FY2003 | FY2004 | |||||||||||||||||||||||
| YR | Q1 | Q2 | Q3 | Q4 | YR | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (58,689 | ) | $ | 765 | $ | 3,714 | $ | 2,454 | $ | (6,185 | ) | $ | 748 | ||||||||||
| Add: | ||||||||||||||||||||||||
| Income tax (benefit) expense | 297 | 517 | 2,292 | 1,169 | (3,312 | ) | 666 | |||||||||||||||||
| Minority interest share of (earnings) losses of consolidated subsidiaries | 6,613 | 1,091 | (65 | ) | 2,852 | 3,381 | 7,259 | |||||||||||||||||
| Equity in net earnings of unconsolidated affiliates | (3,541 | ) | (577 | ) | (1,147 | ) | (900 | ) | (916 | ) | (3,540 | ) | ||||||||||||
| Other income, net | (206 | ) | (4 | ) | (2 | ) | (7 | ) | (22 | ) | (35 | ) | ||||||||||||
| Interest income | (1,358 | ) | (231 | ) | (159 | ) | (211 | ) | (227 | ) | (828 | ) | ||||||||||||
| Interest expense | 25,857 | 6,320 | 6,742 | 6,863 | 7,839 | 27,764 | ||||||||||||||||||
| Loss on debt refinancing | — | — | — | — | 5,090 | 5,090 | ||||||||||||||||||
| Impairments of goodwill and long-lived assets | 58,865 | — | — | — | 7,227 | 7,227 | ||||||||||||||||||
| (Gain)/loss on disposal of property, equipment and other assets | 258 | (84 | ) | 33 | 24 | 114 | 87 | |||||||||||||||||
| Amortization | 1,441 | 290 | 290 | 290 | 290 | 1,160 | ||||||||||||||||||
| Depreciation | 40,104 | 9,723 | 10,430 | 10,921 | 10,033 | 41,107 | ||||||||||||||||||
| Adjusted EBITDA | 69,641 | 17,810 | 22,128 | 23,455 | 23,312 | 86,705 | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||
| Pre-opening expenses | 7,381 | 3,016 | 2,087 | — | — | 5,103 | ||||||||||||||||||
| Adjusted EBITDA, before pre-opening expenses | $ | 77,022 | $ | 20,826 | $ | 24,215 | $ | 23,455 | $ | 23,312 | $ | 91,808 | ||||||||||||