Medcath (MDTH) 8-K Entry into a Material Definitive Agreement

Exhibit 99.1

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

	FY2004			FY2005															FY2006
	YR			Q1			Q2			Q3			Q4			YR			Q1			Q2			Q3
Net revenue	$	618,178		$	168,295		$	176,074		$	179,787		$	175,547		$	699,703		$	171,836		$	192,488		$	189,832
Operating expenses:
Personnel expense		191,493			52,117			53,864			53,893			55,010			214,884			55,244			67,934			58,033
Medical supplies expense		173,205			47,532			50,234			51,047			48,512			197,325			48,163			53,915			52,657
Bad debt expense		40,747			10,446			11,743			13,874			14,340			50,403			13,389			16,788			14,228
Other operating expenses		129,512			35,178			35,852			36,286			35,490			142,806			38,339			37,868			37,916
Pre-opening expenses		5,103			—			—			—			—			—			—			—			—
Depreciation		38,975			9,243			8,937			9,034			10,379			37,593			9,171			9,264			9,366
Amortization		1,160			290			290			290			290			1,160			252			252			252
Loss (gain) on disposal of property, equipment and other assets		89			1			55			148			(824	)		(620	)		97			(38	)		(296	)
Impairments of long-lived assets and goodwill		7,227			—			—			—			2,662			2,662			—			—			451
Total operating expenses		587,511			154,807			160,975			164,572			165,859			646,213			164,655			185,983			172,607
Income from operations		30,667			13,488			15,099			15,215			9,688			53,490			7,181			6,505			17,225
Other income (expenses):
Interest expense		(25,879	)		(7,876	)		(7,813	)		(8,440	)		(8,705	)		(32,834	)		(9,059	)		(8,899	)		(7,870	)
Interest and other income, net		854			389			613			868			1,175			3,045			1,404			1,367			2,977
Loss on debt refinancing		(5,072	)		—			—			—			—			—			—			—			—
Equity in net earnings of unconsolidated affiliates		3,540			769			886			899			802			3,356			1,065			1,410			1,408
Total other expenses, net		(26,557	)		(6,718	)		(6,314	)		(6,673	)		(6,728	)		(26,433	)		(6,590	)		(6,122	)		(3,485	)
Income from continuing operations before minority interest, income taxes and discontinued operations		4,110			6,770			8,785			8,542			2,960			27,057			591			383			13,740
Minority interest share of earnings of consolidated subsidiaries		(6,879	)		(3,999	)		(4,402	)		(3,956	)		(3,611	)		(15,968	)		(2,818	)		(4,790	)		(4,742	)
Income (loss) from continuing operations before income taxes and discontinued operations		(2,769	)		2,771			4,383			4,586			(651	)		11,089			(2,227	)		(4,407	)		8,998
Income tax (benefit) expense		(1,302	)		1,107			1,755			1,952			(101	)		4,713			(890	)		(1,766	)		3,649
Income (loss) from continuing operations		(1,467	)		1,664			2,628			2,634			(550	)		6,376			(1,337	)		(2,641	)		5,349
Income (loss) from discontinued operations, net of taxes(1)		(2,156	)		2,876			1,175			115			(1,751	)		2,415			4			701			(439	)
Net income (loss)	$	(3,623	)	$	4,540		$	3,803		$	2,749		$	(2,301	)	$	8,791		$	(1,333	)	$	(1,940	)	$	4,910
Earnings (loss) per share, basic
Continuing operations	$	(0.08	)	$	0.09		$	0.15		$	0.14		$	(0.03	)	$	0.35		$	(0.07	)	$	(0.14	)	$	0.28
Discontinued operations		(0.12	)		0.16			0.06			0.01			(0.09	)		0.13			0.00			0.04			(0.02	)
Earnings (loss) per share, basic	$	(0.20	)	$	0.25		$	0.21		$	0.15		$	(0.12	)	$	0.48		$	(0.07	)	$	(0.10	)	$	0.26
Earnings (loss) per share, diluted
Continuing operations	$	(0.08	)	$	0.09		$	0.14		$	0.13		$	(0.03	)	$	0.33		$	(0.07	)	$	(0.14	)	$	0.27
Discontinued operations		(0.12	)		0.15			0.06			0.01			(0.09	)		0.12			0.00			0.04			(0.02	)
Earnings (loss) per share, diluted	$	(0.20	)	$	0.24		$	0.20		$	0.14		$	(0.12	)	$	0.45		$	(0.07	)	$	(0.10	)	$	0.25
Weighted average number of shares, basic		17,984			18,045			18,177			18,425			18,493			18,286			18,501			18,618			18,630
Dilutive effect of stock options and restricted stock		—			932			1,285			1,248			—			1,184			—			—			661
Weighted average number of shares, diluted		17,984			18,977			19,462			19,673			18,493			19,470			18,501			18,618			19,291

(1) Includes results of operations of The Heart Hospital of Milwaukee and Tucson Heart Hospital.