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 March 31, | Six Months Ended March 31, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
| Net revenue | $ | 208,532 | $ | 192,014 | $ | 393,653 | $ | 376,774 | ||||||||
| Operating expenses: | ||||||||||||||||
| Personnel expense | 73,195 | 59,402 | 133,670 | 116,615 | ||||||||||||
| Medical supplies expense | 58,484 | 55,564 | 110,443 | 108,050 | ||||||||||||
| Bad debt expense | 17,826 | 11,947 | 32,264 | 23,431 | ||||||||||||
| Other operating expenses | 41,480 | 37,505 | 82,533 | 75,905 | ||||||||||||
| Depreciation | 9,669 | 9,431 | 19,310 | 19,167 | ||||||||||||
| Amortization | 252 | 290 | 504 | 580 | ||||||||||||
| (Gain) loss on disposal of property, equipment and other assets | (37 | ) | 71 | 82 | 74 | |||||||||||
| Total operating expenses | 200,869 | 174,210 | 378,806 | 343,822 | ||||||||||||
| Income from operations | 7,663 | 17,804 | 14,847 | 32,952 | ||||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest expense | (8,908 | ) | (7,775 | ) | (17,976 | ) | (15,773 | ) | ||||||||
| Interest and other income, net | 1,388 | 621 | 2,805 | 1,016 | ||||||||||||
| Equity in net earnings of unconsolidated affiliates | 1,410 | 886 | 2,475 | 1,655 | ||||||||||||
| Total other expenses, net | (6,110 | ) | (6,268 | ) | (12,696 | ) | (13,102 | ) | ||||||||
| Income from continuing operations before minority interest, income taxes and discontinued operations | 1,553 | 11,536 | 2,151 | 19,850 | ||||||||||||
| Minority interest share of earnings of consolidated subsidiaries | (4,790 | ) | (4,402 | ) | (7,608 | ) | (8,401 | ) | ||||||||
| Income (loss) from continuing operations before income taxes and discontinued operations | (3,237 | ) | 7,134 | (5,457 | ) | 11,449 | ||||||||||
| Income tax expense (benefit) | (1,297 | ) | 2,856 | (2,184 | ) | 4,579 | ||||||||||
| Income (loss) from continuing operations | (1,940 | ) | 4,278 | (3,273 | ) | 6,870 | ||||||||||
| Income (loss) from discontinued operations, net of taxes | — | (475 | ) | — | 1,473 | |||||||||||
| Net income (loss) | $ | (1,940 | ) | $ | 3,803 | $ | (3,273 | ) | $ | 8,343 | ||||||
| Earnings (loss) per share, basic | ||||||||||||||||
| Continuing operations | $ | (0.10 | ) | $ | 0.24 | $ | (0.18 | ) | $ | 0.38 | ||||||
| Discontinued operations | — | (0.03 | ) | — | 0.08 | |||||||||||
| Earnings (loss) per share, basic | $ | (0.10 | ) | $ | 0.21 | $ | (0.18 | ) | $ | 0.46 | ||||||
| Earnings (loss) per share, diluted | ||||||||||||||||
| Continuing operations | $ | (0.10 | ) | $ | 0.22 | $ | (0.18 | ) | $ | 0.36 | ||||||
| Discontinued operations | — | (0.02 | ) | — | 0.07 | |||||||||||
| Earnings (loss) per share, diluted | $ | (0.10 | ) | $ | 0.20 | $ | (0.18 | ) | $ | 0.43 | ||||||
| Weighted average number of shares, basic | 18,618 | 18,177 | 18,559 | 18,110 | ||||||||||||
| Dilutive effect of stock options | — | 1,285 | — | 1,139 | ||||||||||||
| | ||||||||||||||||
| Weighted average number of shares, diluted | 18,618 | 19,462 | 18,559 | 19,249 | ||||||||||||
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 March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2006 | 2005 | % Change | 2006 | 2005 | % Change | |||||||||||||||||||||||||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net revenue | $ | 208,532 | $ | 192,014 | 8.6 | % | $ | 393,653 | $ | 376,774 | 4.5 | % | ||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA (1) | $ | 27,753 | $ | 27,596 | 0.6 | % | $ | 45,366 | $ | 52,773 | (14.0 | )% | ||||||||||||||||||||||||||||||||||||
| Income from operations | $ | 7,663 | $ | 17,804 | (57.0 | )% | $ | 14,847 | $ | 32,952 | (54.9 | )% | ||||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (1,940 | ) | $ | 4,278 | (145.3 | )% | $ | (3,273 | ) | $ | 6,870 | (147.6 | )% | ||||||||||||||||||||||||||||||||||
| Earnings (loss) per share from continuing operations, basic | $ | (0.10 | ) | $ | 0.24 | (141.7 | )% | $ | (0.18 | ) | $ | 0.38 | (147.4 | )% | ||||||||||||||||||||||||||||||||||
| Earnings (loss) per share from continuing operations, diluted | $ | (0.10 | ) | $ | 0.22 | (145.4 | )% | $ | (0.18 | ) | $ | 0.36 | (150.0 | )% | ||||||||||||||||||||||||||||||||||
| (1) See Supplemental Financial Disclosure—Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2006 | 2005 | % Change | 2006 | 2005 | % 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) | 660 | 631 | 660 | 631 | ||||||||||||||||||||||||||||||||||||||||||||
| Admissions (d) | 12,566 | 11,719 | 7.2 | % | 23,851 | 22,602 | 5.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted admissions (e) | 16,340 | 15,617 | 4.6 | % | 31,121 | 29,893 | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||
| Patient days (f) | 42,361 | 42,503 | (0.3 | )% | 80,339 | 79,661 | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Adjusted patient days (g) | 55,203 | 56,521 | (2.3 | )% | 104,776 | 104,878 | (0.1 | )% | ||||||||||||||||||||||||||||||||||||||||
| Average length of stay (days) (h) | 3.37 | 3.63 | (7.2 | )% | 3.37 | 3.52 | (4.3 | )% | ||||||||||||||||||||||||||||||||||||||||
| Occupancy (i) | 71.3 | % | 74.8 | % | 66.9 | % | 69.4 | % | ||||||||||||||||||||||||||||||||||||||||
| Inpatient catheterization procedures | 6,517 | 5,891 | 10.6 | % | 12,209 | 11,699 | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||
| Inpatient surgical procedures | 3,516 | 3,151 | 11.6 | % | 6,539 | 5,926 | 10.3 | % | ||||||||||||||||||||||||||||||||||||||||
| (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. | |
| (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 GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-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 six months ended March 31, 2006 and 2005.
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Income (loss) from continuing operations | $ | (1,940 | ) | $ | 4,278 | $ | (3,273 | ) | $ | 6,870 | ||||||
| Add: | ||||||||||||||||
| Income tax expense (benefit) | (1,297 | ) | 2,856 | (2,184 | ) | 4,579 | ||||||||||
| Minority interest share of earnings of consolidated subsidiaries | 4,790 | 4,402 | 7,608 | 8,401 | ||||||||||||
| Equity in net earnings of unconsolidated affiliates | (1,410 | ) | (886 | ) | (2,475 | ) | (1,655 | ) | ||||||||
| Interest and other income, net | (1,388 | ) | (621 | ) | (2,805 | ) | (1,016 | ) | ||||||||
| Interest expense | 8,908 | 7,775 | 17,976 | 15,773 | ||||||||||||
| (Gain) loss on disposal of property, equipment and other assets | (37 | ) | 71 | 82 | 74 | |||||||||||
| Amortization | 252 | 290 | 504 | 580 | ||||||||||||
| Depreciation | 9,669 | 9,431 | 19,310 | 19,167 | ||||||||||||
| Share-based compensation expense | 10,206 | — | 10,623 | — | ||||||||||||
| Adjusted EBITDA | $ | 27,753 | $ | 27,596 | $ | 45,366 | $ | 52,773 | ||||||||