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

Exhibit 99.2

MEDCATH CORPORATION
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(Presenting Dayton Heart Hospital as a Discontinued Operation and Harlingen Medical
Center as an Equity Method Investment for Each Period Presented)
(In thousands, except per share data)
(Unaudited)

	Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended
	March 31,			June 30,			September 30,			December 31,
	2007			2007			2007			2007
Net revenue	$	152,760		$	159,813		$	145,084		$	148,850
Operating expenses:
Personnel expense		49,216			47,655			47,200			50,865
Medical supplies expense		43,789			43,252			38,768			39,629
Bad debt expense		9,579			10,593			9,012			11,285
Other operating expenses		29,700			29,972			27,851			29,145
Pre-opening expenses		—			—			555			248
Depreciation		6,861			6,786			6,748			7,366
Amortization		127			126			126			127
Loss on disposal of property, equipment and other assets		614			175			419			28
Total operating expenses		139,886			138,559			130,679			138,693
Income from operations		12,874			21,254			14,405			10,157
Other income (expenses):
Interest expense		28			3,939			3,915			3,931
Loss on early extinguishment of debt		5,142			—			4,789			—
Interest and other income, net		(2,011	)		(1,949	)		(1,568	)		(1,167	)
Equity in net earnings of unconsolidated affiliates		(1,946	)		(247	)		(1,644	)		(2,025	)
Total other expenses, net		1,213			1,743			5,492			739
Income from continuing operations before minority interest, income taxes and discontinued operations		11,661			19,511			8,913			9,418
Minority interest share of earnings of consolidated subsidiaries		3,268			4,007			4,437			4,452
Income from continuing operations before income taxes and discontinued operations		8,393			15,504			4,476			4,966
Income tax expense		4,504			5,395			2,022			2,348
Income from continuing operations		3,889			10,109			2,454			2,618
Income (loss) from discontinued operations		1,521			837			(1,546	)		446
Net income	$	5,410		$	10,946		$	908		$	3,064
Earnings (loss) per share, basic
Continuing operations	$	0.19		$	0.48		$	0.11		$	0.13
Discontinued operations		0.07			0.04			(0.07	)		0.02
Earnings (loss) per share, basic	$	0.26		$	0.52		$	0.04		$	0.15
Earnings (loss) per share, diluted
Continuing operations	$	0.18		$	0.46		$	0.11		$	0.12
Discontinued operations		0.07			0.04			(0.07	)		0.02
Earnings (loss) per share, diluted	$	0.25		$	0.50		$	0.04		$	0.14
Weighted average number of shares, basic		21,019			21,144			21,202			21,028
Dilutive effect of stock options and restricted stock		625			682			579			263
Weighted average number of shares, diluted		21,644			21,826			21,781			21,291
Selected Operating Data (same facility) (a):
Number of hospitals		7			7			7			7
Licensed beds (b)		421			421			421			421
Staffed and available beds (c)		404			404			404			404
Admissions (d)		7,929			7,759			7,118			7,150
Adjusted admissions (e)		10,338			10,238			9,622			9,830
Patient days (f)		28,156			26,397			24,290			25,460
Adjusted patient days (g)		36,755			34,827			33,011			35,144
Average length of stay (h)		3.55			3.40			3.41			3.56
Occupancy (i)		77.4	%		71.8	%		65.4	%		68.5	%
Inpatient catheterization procedures (j)		4,666			4,530			3,904			4,049
Inpatient surgical procedures (k)		2,049			2,126			1,959			1,947

Exhibit 99.2

(a)	Selected operating data includes consolidated hospitals in operation 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 all periods presented excludes Harlingen Medical Center.
(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 volume. 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.
(j)	Inpatients with a catheterization procedure represent the number of inpatients with a procedure performed in one of the hospitals’ catheterization labs during the period.
(k)	Inpatient surgical procedures represent the number of surgical procedures performed on inpatients during the period.