SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 27, 1997
MEDCATH INCORPORATED
(Exact name of registrant
as specified in its charter)
North Carolina 0-25176 56-1635096
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
7621 Little Avenue, Suite 106, Charlotte, North Carolina 28226
(Address of principal executive offices)
Registrant's telephone number, including area code (704) 541-3228
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Item 5. Other Events
On January 27, 1997 MedCath Incorporated announced financial results for the
first quarter ended December 31, 1996. Highlights included first quarter EPS of
$0.15, record net revenue and net income and profitable operations at the
McAllen Heart Hospital. During the first quarter the Company also opened the
Gastonia lab, in North Carolina, and commenced management of Heart Clinic, P.A.,
in Texas. In addition, the Company announced its sixth Heart Hospital project,
Arizona Heart Hospital, in Phoenix, Arizona in January 1997.
Exhibits:
99.1 - Press Release dated January 27, 1997
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
MEDCATH INCORPORATED
Date: February 3, 1997 By: /s/ Richard J. Post
---------------------------------
Richard J. Post
Chief Financial Officer,
Secretary and Treasurer
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Exhibit 99.1
MEDCATH INCORPORATED ANNOUNCES FIRST QUARTER RESULTS
First Quarter Highlights:
* First quarter EPS of $0.15 with record net revenue and net income
* McAllen Heart Hospital continues improvement and operates
profitably for the quarter
* Arizona Heart Hospital announced, five heart hospitals under development
* Diagnostics Division expands to 31 facilities with opening of Gastonia lab
* Practice Management Division commences management of Heart Clinic
Charlotte, North Carolina (January 27, 1997) -- MedCath Incorporated
(Nasdaq/NM:MCTH) today announced financial results for the first quarter ended
December 31, 1996.
Net revenue for the first quarter ended December 31, 1996, increased
104% to $22.9 million compared with $11.2 million for the same period in 1995.
Net income for the first quarter ended December 31, 1996, increased 43% to $1.8
million compared with $1.2 million for the same period in 1995. Net income per
share for the first quarter ended December 31, 1996, increased to $0.15 on 11.7
million shares compared with $0.14 on 9.0 million shares for the same period in
1995.
Stephen R. Puckett, president of MedCath said, "While we are pleased
that the financial results for the quarter were consistent with analysts'
expectations, we are particularly pleased that our operational progress in
fiscal 1996 has continued into the first quarter. In calendar year 1996, the
first full year of operations for the McAllen Heart Hospital, we believe that
the hospital has achieved a dominant 44% cardiac cath lab market share. During
that period, the hospital treated 2,330 patients in its cardiac cath labs and
performed 354 open heart procedures. During the first quarter of fiscal 1997,
the average daily census at the McAllen Heart Hospital was 40, procedure volumes
continued to increase and the hospital experienced record net revenue and
operated profitably."
During the first quarter, each of the Company's operating divisions
continued their expansion. The Company announced the formation of a venture with
the Arizona Heart Institute to construct a new heart hospital to be located in
Phoenix, Arizona. To be named the Arizona Heart Hospital, the venture plans to
complete the hospital by Spring 1998 and will be the Company's sixth heart
hospital project. The Diagnostics Division expanded with the opening of a new
cath lab pursuant to a joint venture agreement with the 442-bed Gaston Memorial
Hospital in Gastonia, North Carolina. The opening of this lab brings the total
number of mobile and fixed-site facilities either owned or managed by the
Company to 31. The Practice Management Division commenced management of Heart
Clinic, P.A. on October 1, 1996. Heart Clinic is a seven-physician cardiology
group located in McAllen, Texas, and is the third physician group practice
managed by the Company.
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In closing, Mr. Puckett said, "We continue to be enthusiastic about the
progress we are making. All three divisions are performing very well, and we
believe this momentum will continue throughout the year. Clearly, MedCath has
established itself as a unique company specializing in very attractive lines of
business in the health care sector. We are confident that we are becoming the
premier cardiovascular disease management company."
Statements contained in this press release which are not historical
facts may be considered forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ materially from those projected. Such risks and uncertainties
include construction and development risks associated with heart hospitals;
operating losses and negative cash flows during the initial operation of heart
hospitals; dependence on physician relationships; dependence on long-term
management contracts; fluctuations in quarterly operating results from
seasonality, population shifts and other factors; dependence on key management;
as well as other risks detailed in the Company's filings with the Securities and
Exchange Commission.
MedCath Incorporated is a provider of cardiology and cardiovascular
services through the operation of specialized facilities and the management of
physician practices. The Company operates one specialty heart hospital and has
five additional heart hospitals under development, manages three medical
practices comprised of a total of 76 physicians, manages fixed-site cardiac
diagnostic and therapeutic centers, and owns and operates mobile cardiac
catheterization laboratories serving networks of hospitals.
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<TABLE>
<CAPTION>
MEDCATH INCORPORATED
Financial Highlights
Three Months Ended
December 31
1996 1995
<S> <C> <C>
Net revenue $ 22,854,453 $ 11,208,633
Operating expenses 19,333,246 8,845,612
---------- -----------
Income from operations 3,521,207 2,363,021
Income before income taxes 2,923,760 2,043,617
Provision for income taxes 1,169,504 817,447
Net income $ 1,754,256 $ 1,226,170
Net income per common and common
equivalent share $ 0.15 $ 0.14
Weighted average number of shares outstanding 11,684,550 8,989,601
<CAPTION>
December 31, September 30,
1996 1996
<S> <C> <C>
Cash and short-term investments $ 58,462,519 $ 61,693,549
Working capital $ 64,554,443 $ 65,809,625
Total assets $ 199,368,803 $ 181,920,718
Long-term debt and capital leases,
excluding current maturities $ 59,028,243 $ 45,895,438
Shareholders' equity $ 122,089,346 $ 120,245,093
</TABLE>
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