Key Developments: MedCath Corporation (MDTH.O)
6.88USD
9 Feb 2010
$0.03 (+0.44%)
$6.88
--
$7.20
$6.80
56,124
92,962
$13.63
$5.70
Latest Key Developments
MedCath Corporation Sells Sun City Cardiac Center Associates To Banner Health
MedCath Corporation announced the sale of Sun City Cardiac Center Associates (Sun City), a partnership owned 60% by MedCath Partners, LLC and 40% by certain physician and other investors, to Banner Health. The transaction, which was structured as an asset sale, valued Sun City at $16.9 million, excluding approximately $0.9 million in working capital retained by the selling partnership. In addition to its portion of the sale proceeds, the Company will lease certain equipment to Banner Health for approximately $0.3 million annually for three years. The sale was effective September 30, 2009.
MedCath Corporation Names Art Parker As CFO
MedCath Corporation announced that Art Parker has been appointed Executive Vice President and Chief Financial Officer (CFO) effectively immediately. Parker has been a part of MedCath's transformation strategy and has served as interim CFO since June, and prior to that, he has served as Senior Vice President, Finance and Development and Senior Vice President and Treasurer.
MedCath Corporation Appoints New CFO
MedCath Corporation announced that Art Parker, Senior Vice President, Finance and Development, has been named Interim Chief Financial Officer. Parker replaces Jeff Hinton, whose employment with MedCath has ended effective immediately. MedCath has engaged an executive search firm to identify a permanent Chief Financial Officer candidate.
MedCath Corporation Announces Delay in 2nd Quarter Earnings Announcement and Filing of Form 10-Q
MedCath Corporation announced that it has delayed the issuance of its operating results for its fiscal quarter ended March 31, 2009 and the filing of its Form 10-Q for the same period. The delay arises as a result of an ongoing internal assessment by the Company, under the supervision of the Audit Committee, of certain aspects of the Company's operations and controls.
MedCath Corporation Announces Completion Of Sale Of Equity Interest In Joint Venture
MedCath Corporation announced the completion of the sale of its ownership in a joint venture in its MedCath Partners division. The sale was completed December 31, 2008. MedCath received $6.9 million in cash for its 51% ownership interest in the joint venture. MedCath intends to use the proceeds from the sale for general corporate purposes.
MedCath Corporation To No Longer Provide Annual Financial Guidance; Announces New Credit Facility
MedCath Corporation announced that due to its development activities and diversification strategy, which are expected to result in the opening of 150 inpatient beds over the next 12 months, it is eliminating the previous practice of providing annual financial guidance. The Company also announced the completion of the syndication of a $160.0 million, three year senior secured credit facility. The syndication was jointly led by Bank of America, N.A. as the administrative agent and Wachovia Bank, National Association, as the syndication agent. The credit facility consists of a $75.0 million term loan and an $85.0 million revolver, and is secured with a lien on the assets of the Company and its wholly owned subsidiaries. The Company will use the proceeds of the $75.0 million term loan, along with cash on hand, to repurchase all of the Company's $102.0 million outstanding 9 7/8% senior notes, plus pay the notes' repurchase premium of approximately $5.0 million. The $85.0 million revolver replaces the Company's current $100.0 million revolver and will be available to support general corporate purposes.
MedCath Corporation Announces Completion Of Sale Of Dayton Heart Hospital To Good Samaritan Hospital-Dayton
MedCath Corporation, its physician partners and Good Samaritan Hospital, Dayton, Ohio, jointly announced that the parties have completed the sale of Dayton Heart Hospital to Good Samaritan Hospital. Under terms of the transaction, Good Samaritan purchased substantially all of Dayton Heart Hospital's assets for $55.0 million. Net proceeds to MedCath, after income tax expense related to the gain on sale and liquidation of net working capital retained by the hospital partnership, are anticipated to total approximately $32.0 million. MedCath will use the proceeds for general corporate purposes, including investment in other hospital projects.
MedCath Corporation Names Parker To New Finance Post
MedCath Corporation announced that Art Parker, Senior Vice President and Treasurer and currently Interim Chief Financial Officer, has been named Senior Vice-President, Finance and Development effective immediately. The Company is nearing a completion of its search for a Chief Financial Officer to fill the post vacated in January.
MedCath Corporation Issues Q2 2008 Guidance Below Analysts' Estimates; Revises FY 2008 Guidance Below Analysts' Estimates
MedCath Corporation announced that for second quarter 2008 it expects net revenue to be $156.7 to $157.3 million, adjusted EBITDA of $23.4 to $24.0 million and earnings from continuing operations of $5.0 to $5.6 million or $0.25 to $0.28 per diluted share. The Company also revised its fiscal 2008 outlook and expects net revenue in the range of $620.0 to $630.0 million, adjusted EBITDA in the range of $98.0 to $101.0 million and income from continuing operation in the range of $25.8 to $27.4 million. According to Reuters Estimates, analysts were expecting the Company to report revenue of $170.3 million EBITDA of $27.4 million and EPS of $0.37 for second quarter 2008; revenue of $671.7 million, EBITDA of $105.5 million and net income of $27.2 million for fiscal 2008. The Company cited lower than anticipated inpatient volumes, lower than anticipated revenue per adjusted admission and lower than expected net revenue and Adjusted EBITDA within the MedCath Partners Division due to continued weaknesses in certain of the division's majority owned catheterization laboratories and its mobile leasing unit as the primary reason for negative outlook.
MedCath Corporation Announces Acquisition Of Ownership In Arizona Cath Lab
MedCath Corporation announced that MedCath Partners, LLC has acquired a 27.4% interest in a joint venture known as Southwest Arizona Heart and Vascular Center, LLC. The joint venture provides cardiac catheterization lab services to Yuma Regional Medical Center in Yuma, Arizona under a Management and Service Agreement with the Hospital. The joint venture will be owned by MedCath and Heart, Lung and Vascular Center of Yuma, Inc., a physician owned entity. The facility is located on the campus of Yuma Regional Medical Center, about 180 miles southwest of Phoenix. As part of the agreement, MedCath Partners, LLC will assume management of the joint venture. MedCath will also work with the physicians and hospital to add additional capacity to the facility as well as work to add additional services to the outlying community.
HEADLINE STOCKS-U.S. stocks on the move on May 22
NEW YORK, May 22 (Reuters) - Some U.S. stocks on the move on Friday:
Earnings vs. 
Estimates
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
