Item 2.02. Results of Operations and Financial Condition
On February 4, 2009, MedCath issued a press release announcing the Company's results of operations for the fiscal quarter ended December 31, 2008. A copy of the press release is furnished as Exhibit 99.1.
MedCath is providing reclassified unaudited consolidated statement of operations to reflect the reclassification of the results of operations of Cape Cod Cardiology Services, LLC (Cape Cod), as a discontinued operation for all quarters for the fiscal year ended September 30, 2008. The Company believes this information will be useful to investors in evaluating the performance of MedCath. The reclassified unaudited historical financial information is included in Exhibit 99.3.
Included in the press release and the supplemental financial information issued by the Company and furnished herewith as Exhibits 99.1 and 99.2, are certain non-GAAP financial measures, including Adjusted EBITDA. Adjusted EBITDA represents MedCath's income from continuing operations before interest expense; loss on early extinguishment of debt; income tax expense; depreciation; amortization; impairment of long-lived assets; share-based compensation expense; loss (gain) on disposal of property, equipment and other assets; interest and other income, net; equity in net earnings of unconsolidated affiliates; minority interest share of earnings of consolidated subsidiaries; and pre-opening expenses. MedCath's management uses Adjusted EBITDA to measure the performance of the company's various operating entities, to compare actual results to historical and budgeted results, and to make capital allocation decisions. Management provides Adjusted EBITDA to investors to assist them in performing their analyses of MedCath's historical operating results. Further, management believes that many investors in MedCath also invest in, or have knowledge of, other healthcare companies that use Adjusted EBITDA as a financial performance measure.
Because Adjusted EBITDA is a non-GAAP measures, Adjusted EBITDA, as defined above, may not be comparable to other similarly titled measures of other companies. MedCath has included a supplemental schedule with the financial statements that accompanies this press release that reconciles historical Adjusted EBITDA to MedCath's income from continuing operations. Item 9.01. Financial Statements and Exhibits