Exhibit 99.3
MEDCATH CORPORATION
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(Presenting Normalized Results taking Dayton Heart Hospital as a Discontinued Operation and Harlingen Medical
Center as an Equity Method Investment into Consideration for Each Period Presented)
(In thousands, except per share data)
(Unaudited)
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(Presenting Normalized Results taking Dayton Heart Hospital as a Discontinued Operation and Harlingen Medical
Center as an Equity Method Investment into Consideration for Each Period Presented)
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | ||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | |||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||
| Normalized Net revenue | $ | 155,818 | $ | 160,198 | $ | 145,570 | $ | 149,073 | ||||||||
| Normalized Adjusted EBITDA | $ | 25,623 | $ | 29,414 | $ | 23,229 | $ | 22,302 | ||||||||
| Normalized Income from continuing operations | $ | 7,970 | $ | 10,171 | $ | 6,295 | $ | 5,759 | ||||||||
| Normalized Net income | $ | 9,457 | $ | 11,008 | $ | 6,726 | $ | 6,329 | ||||||||
| Earnings (loss) per share, basic | ||||||||||||||||
| Earnings (loss) per share, basic | $ | 0.45 | $ | 0.52 | $ | 0.32 | $ | 0.30 | ||||||||
| Earnings (loss) per share, diluted | ||||||||||||||||
| Earnings (loss) per share, diluted | $ | 0.44 | $ | 0.50 | $ | 0.31 | $ | 0.30 | ||||||||
| 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 | ||||||||||||
Exhibit 99.3
MEDCATH CORPORATION
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
The following table reconciles Normalized Net Revenue with MedCath’s recasted Net Revenue for the fiscal quarters ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007.
| Three Months Ended | ||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | |||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||
| Net Revenue | $ | 152,760 | $ | 159,813 | $ | 145,084 | $ | 148,850 | ||||||||
| Add: | ||||||||||||||||
| Settlement reserve | 3,120 | — | — | — | ||||||||||||
| Out-of-period cost report adjustments | — | 385 | 486 | 223 | ||||||||||||
| Deduct: | ||||||||||||||||
| Out-of-period cost report adjustments | (62 | ) | — | — | — | |||||||||||
| Normalized Net Revenue | $ | 155,818 | $ | 160,198 | $ | 145,570 | $ | 149,073 | ||||||||
The following table reconciles Normalized Adjusted EBITDA with MedCath’s recasted Income from Continuing Operations for the fiscal quarters ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007.
| Three Months Ended | ||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | |||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||
| Income from Continuing Operations | $ | 3,889 | $ | 10,109 | $ | 2,454 | $ | 2,618 | ||||||||
| Add: | ||||||||||||||||
| Income tax expense | 4,504 | 5,395 | 2,022 | 2,348 | ||||||||||||
| Minority interest share of earnings of consolidated subsidiaries | 3,268 | 4,007 | 4,437 | 4,452 | ||||||||||||
| Equity in net earnings of unconsolidated affiliates | (1,946 | ) | (247 | ) | (1,644 | ) | (2,025 | ) | ||||||||
| Interest and other income, net | (2,011 | ) | (1,949 | ) | (1,568 | ) | (1,167 | ) | ||||||||
| Loss on early extinguishment of debt | 5,142 | — | 4,789 | — | ||||||||||||
| Interest expense | 28 | 3,939 | 3,915 | 3,931 | ||||||||||||
| Impairment of long-lived assets | ||||||||||||||||
| Loss (gain) on disposal of property, equipment and Other assets | 614 | 175 | 419 | 28 | ||||||||||||
| Amortization | 127 | 126 | 126 | 127 | ||||||||||||
| Depreciation | 6,861 | 6,786 | 6,748 | 7,366 | ||||||||||||
| Pre-opening expenses | — | — | 555 | 248 | ||||||||||||
| Severance | — | — | — | 263 | ||||||||||||
| Share-based compensation expense | 2,089 | 688 | 490 | 3,709 | ||||||||||||
| Settlement reserve | 3,120 | — | — | — | ||||||||||||
| Out-of-period cost report adjustments | — | 385 | 486 | 223 | ||||||||||||
| Business continuity expense | 181 | |||||||||||||||
| Deduct: | ||||||||||||||||
| Out-of-period cost report adjustments | (62 | ) | — | — | — | |||||||||||
| Normalized Adjusted EBITDA | $ | 25,623 | $ | 29,414 | $ | 23,229 | $ | 22,302 | ||||||||
The following table reconciles Normalized Income from Continuing Operations with MedCath’s recasted Income from Continuing Operations for the fiscal quarters ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007.
| Three Months Ended | ||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | |||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||
| Income from continuing operations | $ | 3,889 | $ | 10,109 | $ | 2,454 | $ | 2,618 | ||||||||
| Add: | ||||||||||||||||
| Share-based compensation expense | 1,092 | 423 | 284 | 2,308 | ||||||||||||
| Settlement reserve | 2,196 | — | — | — | ||||||||||||
| Out-of-period cost report adjustments | — | 135 | 252 | 71 | ||||||||||||
| Business continuity expense | — | — | — | 86 | ||||||||||||
| Loss on early extinguishment of debt | 351 | — | 2,648 | |||||||||||||
| Income tax impact of normalized adjustments | 465 | — | 142 | 456 | ||||||||||||
| Harlingen transaction expenses | — | — | 193 | |||||||||||||
| Severance costs | — | — | — | 126 | ||||||||||||
| Pre-opening expense | — | — | 322 | 94 | ||||||||||||
| Deduct: | ||||||||||||||||
| Income tax impact of normalized adjustments | — | (496 | ) | — | — | |||||||||||
| Out-of-period cost report adjustments | (23 | ) | — | — | — | |||||||||||
| Normalized Income from Continuing Operations | $ | 7,970 | $ | 10,171 | $ | 6,295 | $ | 5,759 | ||||||||
The following table reconciles Normalized Net Income with MedCath’s recasted Net Income for the fiscal quarters ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007.
| Three Months Ended | ||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | |||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||
| Net Income | $ | 5,410 | $ | 10,946 | $ | 908 | $ | 3,064 | ||||||||
| Add: | ||||||||||||||||
| Share-based compensation expense | 1,092 | 423 | 284 | 2,308 | ||||||||||||
| Settlement reserve | 2,196 | — | — | — | ||||||||||||
| Out-of-period cost report adjustments | — | 135 | 199 | 71 | ||||||||||||
| Business continuity expense | — | — | — | 86 | ||||||||||||
| Loss on early extinguishment of debt | 351 | — | 2,648 | — | ||||||||||||
| Income tax impact of normalized adjustments | 465 | — | 142 | 456 | ||||||||||||
| Harlingen transaction expenses | — | — | 193 | — | ||||||||||||
| Severance costs | — | — | — | 126 | ||||||||||||
| Pre-opening expense | — | — | 322 | 94 | ||||||||||||
| Impairment of long-lived assets | — | — | 2,030 | 124 | ||||||||||||
| Deduct: | ||||||||||||||||
| Income tax impact of normalized adjustments | — | (496 | ) | — | — | |||||||||||
| Out-of-period cost report adjustments | (57 | ) | — | — | — | |||||||||||
| Normalized Income from Continuing Operations | $ | 9,457 | $ | 11,008 | $ | 6,726 | $ | 6,329 | ||||||||