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CML HealthCare Income Fund Provides Update on U.S. Medical ImagingAcquisition Activity

^{Published on 2009-10-07 03:04:26 - Market Wire}
 

 The Imaging Institute and Quarry Lake Acquisition Details --------------------------------------------------------- Revenues(2) for the twelve months ended August 31, 2009 (unaudited) of TII (Rhode Island) and Quarry Lake (Maryland), as well as the aggregate consideration paid, are included in the following summary: Number of Clinics Six Modalities MRI, CT, Digital Mammography, Ultrasound, X-ray, Bone Densitometry (DEXA) Revenues(2) (unaudited): US$14.3 million Consideration: US$12.3 million, including cash and assumption of capital leases, excluding transaction costs 

 UCHS Joint Venture ------------------ 

 (1) Distributable Cash of the Fund is not a Canadian generally accepted accounting principle ("GAAP") measure, and though it is generally used by Canadian open-ended trusts as an indicator of financial performance, it should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. One characteristic of certain non-GAAP measures such as Distributable Cash is the inclusion of management's adjustments for entity-specific issues not contemplated in a standard measurement, such as Standardized Distributable Cash that focuses on comparability across entities and consistency over time. Therefore, the Fund's Distributable Cash may differ from similar calculations as reported by other similar entities and, accordingly, may not be comparable to Distributable Cash as reported by such entities. The Fund's objective for disclosing the Distributable Cash calculation is to outline the net cash flow generated by the Fund that was available for distribution during the period and anticipated to be sustainable into the next period. The Fund uses Distributable Cash to evaluate, on a consistent basis, sustainable cash generated from its operations, and to evaluate cash available for distributions. (2) Revenues are net of professional services costs in the case of TII. (3) The Fund defines EBITDA as earnings before interest, taxes, depreciation, amortization, other expenses, non-controlling interest, gain/loss on disposals of property and equipment, foreign exchange gain and transaction costs on debt financing. EBITDA margins are calculated by dividing EBITDA by revenues. EBITDA is not a recognized measure under Canadian GAAP. Management believes that, in addition to net earnings, EBITDA is a useful supplemental measure, as it provides investors with an indication of the Fund's performance. EBITDA is used by the Fund to analyze performance and compare profitability between periods. Investors should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with GAAP. The Fund's method of calculating EBITDA may differ from other companies or income trusts and, accordingly, EBITDA may not be comparable to measures used by other companies or income trusts.