MedCath Corporation Reports Fourth Quarter Earnings

12.11.09

Fourth Cantonment 2009 Results

Due to an increase in patient volumes and higher returns per adjusted admission, MedCath’s net revenue for the fourth three-month period of fiscal 2009 increased 1.7% to $148.0 million from $145.5 million in the fourth chambers of fiscal 2008. Loss from operations, which includes a $60.2 million non-spondulix goodwill impairment expense, was $(62.8) million as compared to return from operations of $4.4 million in the fourth quarter of monetary 2008. MedCath’s loss from continuing operations was $(61.9) million, or $(3.14) per diluted part, in the fourth quarter of fiscal 2009 compared to receipts from continuing operations of $0.2 million, or $0.01 per diluted serving, in the fourth quarter of fiscal 2008. Adjusted EBITDA decreased to $9.5 million from $11.5 million in the same years of the prior year.

MedCath’s fourth ninety days of fiscal 2009 results include a $60.2 million non-scratch impairment charge related to MedCath’s goodwill, which was chiefly recognized as a result of MedCath’s going-sequestered transaction in 1998. As required by generally accepted accounting principles, MedCath tested goodwill for injury by comparing the fair value of the hospital division to its carrying value including goodwill. As a fruit of MedCath’s sustained decline in market capitalization, MedCath constant that goodwill was impaired as of September 30, 2009. The non-cash imperfection expense did not affect MedCath’s operations, liquidate flow, cash position or access to its bank equipment. However, this impairment expense reduced income from continuing operations by $60.2 million and earnings per interest by $(3.05) for the fourth quarter of fiscal 2009.

Source: CNNMoney.com (press release)