EX-99.1 2 g23381exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
MEDCATH CORPORATION
SUPPLEMENTAL FINANCIAL DISCLOSURE — RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES

(Unaudited)
The following table reconciles the (loss) income from continuing operations, net of taxes attributable to MedCath Corporation’s common
stockholders as derived directly from MedCath Corporation’s consolidated financial statements to Adjusted EBITDA for the
three and six months ended March 31, 2010 and 2009.
                                 
    Three Months Ended March 31,     Six Months Ended March 31,  
    2010     2009     2010     2009  
    (in thousands)     (in thousands)  
 
(Loss) income from continuing operations, net of taxes
  $ (11,999 )   $ 4,220     $ (15,091 )   $ 1,685  
Add:
                               
Income tax (benefit) expense
    (7,386 )     2,610       (9,287 )     1,115  
Net income attributable to noncontrolling interest
    2,151       3,767       2,856       5,816  
Equity in net earnings of unconsolidated affiliates
    (3,206 )     (2,714 )     (4,722 )     (4,779 )
Interest and other income
    (23 )     (73 )     (93 )     (172 )
Loss on note receivable
    1,507             1,507        
Loss on early extinguishment of debt
          (259 )           6,702  
Interest expense
    1,149       581       2,207       2,678  
(Gain) loss on disposal of property, equipment and other assets
    (76 )     108       19       181  
Impairment of property and equipment
    19,948             19,948        
Impairment of equity method investment
    114             114        
Amortization
    8       8       16       16  
Depreciation
    7,768       6,217       15,418       12,713  
Pre-opening expenses
          380       866       587  
Share-based compensation expense
    1,217       839       1,826       1,837  
 
                       
Adjusted EBITDA
  $ 11,172     $ 15,684     $ 15,584     $ 28,379  
 
                       
The following table reconciles MedCath Corporation’s diluted (loss) earnings per share from continuing operations attributable to MedCath Corporations common stockholders as derived directly from MedCath’s consolidated financial statements to Adjusted diluted earnings (loss) per share from continuing operations for the three and six months ended March 31, 2010 and 2009.
                                 
    Three Months Ended March 31,     Six Months Ended March 31,  
    2010     2009     2010     2009  
 
Diluted (loss) earnings per share
  $ (0.61 )   $ 0.21     $ (0.76 )   $ 0.09  
Add:
                               
Loss on early extinguishment of debt
                      0.22  
Impairments of property, equipment, and equity method investment
    0.62             0.62        
Loss on note receivable
    0.05             0.05        
Share-based compensation expense
    0.04       0.03       0.06       0.04  
Pre-opening expense
          0.01       0.02       0.02  
 
                       
Adjusted diluted earnings (loss) per share
  $ 0.10     $ 0.25     $ (0.01 )   $ 0.37