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 September 30, | Twelve Months Ended September 30, | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| Net revenue | $ | 186,670 | $ | 178,637 | $ | 758,560 | $ | 678,605 | ||||||||
| Operating expenses: | ||||||||||||||||
| Personnel expense | 59,657 | 55,437 | 234,935 | 209,682 | ||||||||||||
| Medical supplies expense | 52,441 | 50,715 | 216,329 | 189,655 | ||||||||||||
| Bad debt expense | 15,418 | 13,218 | 53,663 | 46,037 | ||||||||||||
| Other operating expenses | 38,950 | 35,955 | 154,168 | 141,423 | ||||||||||||
| Pre-opening expenses | — | — | — | 5,103 | ||||||||||||
| Depreciation | 10,887 | 10,033 | 39,571 | 41,107 | ||||||||||||
| Amortization | 290 | 290 | 1,160 | 1,160 | ||||||||||||
| Loss (gain) on disposal of property, equipment and other assets | (814 | ) | 114 | (569 | ) | 87 | ||||||||||
| Impairments of long-lived assets | 2,662 | 7,227 | 2,662 | 7,227 | ||||||||||||
| Total operating expenses | 179,491 | 172,989 | 701,919 | 641,481 | ||||||||||||
| Income from operations | 7,179 | 5,648 | 56,641 | 37,124 | ||||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest expense | (8,716 | ) | (7,839 | ) | (32,943 | ) | (27,764 | ) | ||||||||
| Interest and other income, net | 1,187 | 249 | 3,090 | 863 | ||||||||||||
| Loss on debt refinancing | — | (5,090 | ) | — | (5,090 | ) | ||||||||||
| Equity in net earnings of unconsolidated affiliates | 802 | 916 | 3,356 | 3,540 | ||||||||||||
| Total other expenses, net | (6,727 | ) | (11,764 | ) | (26,497 | ) | (28,451 | ) | ||||||||
| Income (loss) from continuing operations before minority interest, income taxes and discontinued operations | 452 | (6,116 | ) | 30,144 | 8,673 | |||||||||||
| Minority interest share of earnings of consolidated subsidiaries | (3,611 | ) | (3,381 | ) | (15,968 | ) | (7,259 | ) | ||||||||
| Income (loss) from continuing operations before income taxes and discontinued operations | (3,159 | ) | (9,497 | ) | 14,176 | 1,414 | ||||||||||
| Income tax expense (benefit) | (1,082 | ) | (3,313 | ) | 6,025 | 665 | ||||||||||
| Income (loss) from continuing operations | (2,077 | ) | (6,184 | ) | 8,151 | 749 | ||||||||||
| Income (loss) from discontinued operations, net of taxes | (224 | ) | (527 | ) | 640 | (4,372 | ) | |||||||||
| Net income (loss) | $ | (2,301 | ) | $ | (6,711 | ) | $ | 8,791 | $ | (3,623 | ) | |||||
| Earnings (loss) per share, basic | ||||||||||||||||
| Continuing operations | $ | (0.11 | ) | $ | (0.34 | ) | $ | 0.45 | $ | 0.04 | ||||||
| Discontinued operations | (0.01 | ) | (0.03 | ) | 0.03 | (0.24 | ) | |||||||||
| Earnings per share, basic | $ | (0.12 | ) | $ | (0.37 | ) | $ | 0.48 | $ | (0.20 | ) | |||||
| Earnings (loss) per share, diluted | ||||||||||||||||
| Continuing operations | $ | (0.11 | ) | $ | (0.34 | ) | $ | 0.42 | $ | 0.04 | ||||||
| Discontinued operations | (0.01 | ) | (0.03 | ) | 0.03 | (0.24 | ) | |||||||||
| Earnings per share, diluted | $ | (0.12 | ) | $ | (0.37 | ) | $ | 0.45 | $ | (0.20 | ) | |||||
| Weighted average number of shares, basic | 18,493 | 18,014 | 18,286 | 17,984 | ||||||||||||
| Dilutive effect of stock options | — | — | 1,184 | — | ||||||||||||
| Weighted average number of shares, diluted | 18,493 | 18,014 | 19,470 | 17,984 | ||||||||||||
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 September 30, | Twelve Months Ended September 30, | |||||||||||||||||||||||
| 2005 | 2004 | % Change | 2005 | 2004 | % Change | |||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||
| Net revenue | $ | 186,670 | $ | 178,637 | 4.5 | % | $ | 758,560 | $ | 678,605 | 11.8 | % | ||||||||||||
| Adjusted EBITDA (1) | $ | 21,672 | $ | 23,312 | (7.0 | )% | $ | 100,933 | $ | 86,705 | 16.4 | % | ||||||||||||
| Income from operations | $ | 7,179 | $ | 5,648 | 27.1 | % | $ | 56,641 | $ | 37,124 | 52.6 | % | ||||||||||||
| Income (loss) from continuing operations | $ | (2,077 | ) | $ | (6,184 | ) | 66.4 | % | $ | 8,151 | $ | 749 | 988.3 | % | ||||||||||
| Earnings (loss) per share from continuing operations, basic | $ | (0.11 | ) | $ | (0.34 | ) | 67.3 | % | $ | 0.45 | $ | 0.04 | 970.3 | % | ||||||||||
| Earnings (loss) per share from continuing operations, diluted | $ | (0.11 | ) | $ | (0.34 | ) | 67.3 | % | $ | 0.42 | $ | 0.04 | 905.2 | % | ||||||||||
| (1) | See Supplemental Financial Disclosure—Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures. |
| Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||||||||||
| 2005 | 2004 | % Change | 2005 | 2004 | % Change | |||||||||||||||||||
Selected Operating Data (consolidated) (a): | ||||||||||||||||||||||||
| Number of hospitals | 11 | 11 | 11 | 11 | ||||||||||||||||||||
| Licensed beds ( b ) | 672 | 672 | 672 | 672 | ||||||||||||||||||||
| Staffed and available beds ( c ) | 638 | 596 | 638 | 596 | ||||||||||||||||||||
| Admissions ( d ) | 11,370 | 10,940 | 3.9 | % | 45,304 | 41,924 | 8.1 | % | ||||||||||||||||
| Adjusted admissions ( e ) | 14,926 | 14,178 | 5.3 | % | 59,764 | 53,344 | 12.0 | % | ||||||||||||||||
| Patient days ( f ) | 37,675 | 36,645 | 2.8 | % | 156,568 | 144,764 | 8.2 | % | ||||||||||||||||
| Adjusted patient days ( g ) | 49,122 | 47,158 | 4.2 | % | 205,360 | 183,606 | 11.8 | % | ||||||||||||||||
| Average length of stay (days) ( h ) | 3.31 | 3.35 | (1.2 | )% | 3.46 | 3.45 | 0.3 | % | ||||||||||||||||
| Occupancy ( i ) | 64.2 | % | 66.8 | % | 67.2 | % | 66.4 | % | ||||||||||||||||
| Inpatient catheterization procedures | 6,155 | 5,817 | 5.8 | % | 23,882 | 21,688 | 10.1 | % | ||||||||||||||||
| Inpatient surgical procedures | 2,966 | 2,838 | 4.5 | % | 11,996 | 10,606 | 13.1 | % | ||||||||||||||||
| Hospital division revenue | $ | 173,313 | $ | 164,285 | 5.5 | % | $ | 703,854 | $ | 621,806 | 13.2 | % | ||||||||||||
| Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||||||||||
| 2005 | 2004 | % Change | 2005 | 2004 | % Change | |||||||||||||||||||
Selected Operating Data (same facility) (a): | ||||||||||||||||||||||||
| Number of hospitals | 11 | 11 | 9 | 9 | ||||||||||||||||||||
| Licensed beds ( b ) | 672 | 672 | 580 | 580 | ||||||||||||||||||||
| Staffed and available beds ( c ) | 638 | 596 | 546 | 531 | ||||||||||||||||||||
| Admissions ( d ) | 11,370 | 10,940 | 3.9 | % | 40,395 | 39,692 | 1.8 | % | ||||||||||||||||
| Adjusted admissions ( e ) | 14,926 | 14,178 | 5.3 | % | 54,034 | 50,759 | 6.5 | % | ||||||||||||||||
| Patient days ( f ) | 37,675 | 36,645 | 2.8 | % | 139,222 | 137,532 | 1.2 | % | ||||||||||||||||
| Adjusted patient days ( g ) | 49,122 | 47,158 | 4.2 | % | 185,147 | 175,241 | 5.7 | % | ||||||||||||||||
| Average length of stay (days) ( h ) | 3.31 | 3.35 | (1.2 | )% | 3.45 | 3.46 | (0.3 | )% | ||||||||||||||||
| Occupancy ( i ) | 64.2 | % | 66.8 | % | 69.9 | % | 70.8 | % | ||||||||||||||||
| Inpatient catheterization procedures | 6,155 | 5,817 | 5.8 | % | 20,446 | 20,032 | 2.1 | % | ||||||||||||||||
| Inpatient surgical procedures | 2,966 | 2,838 | 4.5 | % | 10,811 | 10,101 | 7.0 | % | ||||||||||||||||
| Hospital division revenue | $ | 173,313 | $ | 164,285 | 5.5 | % | $ | 617,170 | $ | 582,312 | 6.0 | % | ||||||||||||
| (a) | Selected operating data includes consolidated hospitals 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. Same facility for the twelve months ended September 30, 2005 excludes the results of Texsan Heart Hospital and Heart Hospital of Lafayette. | |
| (b) | 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. | |
| (c) | Staffed and available beds represent the number of beds that are readily available for patient use at the end of the period. | |
| (d) | Admissions represent the number of patients admitted for inpatient treatment. | |
| (e) | 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. | |
| (f) | Patient days represent the total number of days of care provided to inpatients. | |
| (g) | Adjusted patient days is a general measure of combined inpatient and outpatient days. We computed adjusted patient days by dividing gross patient revenue by gross inpatient revenue and then multiplying the quotient by patient days. | |
| (h) | Average length of stay (days) represents the average number of days inpatients stay in our hospitals. | |
| (i) | 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. |
MEDCATH CORPORATION
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(Unaudited)
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(Unaudited)
The following table reconciles Adjusted EBITDA with MedCath’s income (loss) from continuing operations as derived directly from MedCath’s consolidated financial statements for the three and twelve months ended September 30, 2005 and 2004.
| Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Income (loss) from continuing operations | $ | (2,077 | ) | $ | (6,184 | ) | $ | 8,151 | $ | 749 | ||||||
| Add: | ||||||||||||||||
| Income tax expense (benefit) | (1,082 | ) | (3,313 | ) | 6,025 | 665 | ||||||||||
| Minority interest share of earnings of consolidated subsidiaries | 3,611 | 3,381 | 15,968 | 7,259 | ||||||||||||
| Equity in net earnings of unconsolidated affiliates | (802 | ) | (916 | ) | (3,356 | ) | (3,540 | ) | ||||||||
| Interest and other income, net | (1,187 | ) | (249 | ) | (3,090 | ) | (863 | ) | ||||||||
| Interest expense | 8,716 | 7,839 | 32,943 | 27,764 | ||||||||||||
| Loss on debt refinancing | — | 5,090 | — | 5,090 | ||||||||||||
| Impairments of long-lived assets | 2,662 | 7,227 | 2,662 | 7,227 | ||||||||||||
| Loss (gain) on disposal of property, equipment and other assets | (814 | ) | 114 | (569 | ) | 87 | ||||||||||
| Amortization | 290 | 290 | 1,160 | 1,160 | ||||||||||||
| Depreciation | 10,887 | 10,033 | 39,571 | 41,107 | ||||||||||||
| Share-based compensation expense | 1,468 | — | 1,468 | — | ||||||||||||
| Adjusted EBITDA | $ | 21,672 | $ | 23,312 | $ | 100,933 | $ | 86,705 | ||||||||