Alliance Imaging Reports Results for the Fourth Quarter and Year Ended December 31, 2005; Provides Estimated 2007 Impact on Medicare Revenue Due to Deficit Reduction Act of 2005.ANAHEIM Anaheim (ăn`əhīm), city (1990 pop. 266,406), Orange co., S Calif., SE of Los Angeles; inc. 1870. Anaheim was founded by Germans in 1857 as an experiment in communal living. , Calif. -- Alliance Imaging, Inc. (NYSE NYSE See: New York Stock Exchange :AIQ AIQ Analytical Instrument Qualification AIQ Available in Quarters AIQ Action Internet Québec AIQ Allowance Item Quantity AIQ Analyst Interest Queue AIQ Algebraic Integer Quantization ), a leading national provider of diagnostic imaging services, announced results for the fourth quarter and year ended December December: see month. 31, 2005. Fourth Quarter and Full Year 2005 Results Fourth quarter 2005 revenue increased 2.8% to $110.2 million from $107.2 million in the same quarter of 2004. Full year 2005 revenue totaled $430.8 million, which was above the Company's previously provided guidance range of $424.5 million to $428.5 million. Full year 2005 revenue decreased 0.3% to $430.8 million from $432.1 million in 2004. Alliance's Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (as defined below), was $37.5 million in the fourth quarter, a 5.1% decrease compared to $39.5 million in the same quarter a year ago. Adjusted EBITDA for the full year was $160.0 million, in line with the Company's guidance range of $156.5 million to $161.0 million. Full year 2005 Adjusted EBITDA decreased 4.7% to $160.0 million from $167.9 million in 2004. Under the terms of Alliance's Credit Agreement, "Adjusted EBITDA" is defined as earnings before interest expense, net of interest income; income taxes; depreciation expense; amortization expense; minority interest expense; non-cash stock-based compensation; loss on early retirement of debt in the fourth quarter and full year 2004; and a maximum of $750,000 of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and related costs in the fourth quarter and full year 2005. For a more detailed discussion of Adjusted EBITDA and reconciliation to net income, see the table entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Adjusted EBITDA" included in the tables following this release. Earnings per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , was $0.05 per share for the fourth quarter of 2005, compared to ($0.49) per share in the comparable period of 2004. Earnings per share on a diluted basis was $0.39 and ($0.01) per share for the full year of 2005 and 2004, respectively. In the fourth quarter of 2004, the Company recorded a loss on early retirement of debt totaling $44.4 million, which reduced earnings per share by $(0.56), net of related tax effects in the fourth quarter and full year of 2004. Also in the full year 2004, the Company increased net income by recording the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of income tax reserves totaling $5.1 million, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.11 per diluted share, primarily related to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. outcome of examinations of the Company's 1998 and 1999 federal income tax returns and a favorable outcome of the treatment of an income item in a federal income tax return of one of the Company's subsidiaries. Severance and related costs and employment agreement costs reduced diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of by approximately $0.01 in both the fourth quarter of 2005 and 2004. Severance and related costs and employment agreement costs reduced diluted earnings per share by approximately $0.01 in the full year of 2005 and $0.04 in the full year of 2004. Fourth quarter and full year 2005 results were negatively impacted primarily by lower than anticipated MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. scan volumes, as well as the effect of Hurricanes Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area and Rita, and rising fuel and transportation costs. The Company estimated that the hurricanes had the impact of reducing revenue by approximately $0.9 million in the fourth quarter and $1.4 million for full year 2005. Alliance's business was also impacted by increasing diesel fuel and mileage MILEAGE. A compensation allowed by law to officers, for their trouble and expenses in travelling on public business. 2. The mileage allowed to members of congress, is eight dollars for every twenty miles of estimated distance, by the most usual roads, from his reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates in the fourth quarter and full year 2005. These increases, which affect the cost of moving mobile systems to client locations and transportation costs of Alliance's technologists, reduced Adjusted EBITDA by approximately $0.8 million in the fourth quarter and $1.2 million for full year 2005. Full year 2005 Adjusted EBITDA declined $1.8 million due to the Company recording a $2.6 million provision for doubtful accounts for full year 2005 compared to $0.8 million in the prior year, due to the collection of higher than normal aged accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying in 2004. The provision for doubtful accounts was 0.6% of revenue for full year 2005, in line with Alliance's historical experience. Capital expenditures in the fourth quarter of 2005 were $30.0 million, compared to $16.7 million in the fourth quarter of 2004. Capital expenditures totaled $76.5 million for the 2005 full year compared to $85.7 million in 2004. In addition, the Company entered into capital lease obligations totaling $3.9 million in 2005. Alliance opened ten new fixed-sites in 2005 and operated 73 fixed-sites as of December 31, 2005. Cash flow provided by operating activities was $34.0 million in the fourth quarter of 2005 compared to $13.8 million in the corresponding quarter of 2004, and was $127.1 million and $120.9 million for the full year of 2005 and 2004, respectively. Alliance's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. increased $3.9 million to $579.6 million as of December 31, 2005 from $575.7 million as of December 31, 2004. The Company spent $50.2 million for acquisitions in 2005 (see discussion following). Excluding 2005 acquisition costs and assuming that these funds would have been otherwise available for debt reduction, total debt would have decreased $46.3 million. Cash and cash equivalents decreased $7.3 million to $13.4 million at December 31, 2005 from $20.7 million at December 31, 2004. 2005 Acquisitions Effective September September: see month. 1, 2005, Alliance purchased certain assets associated with six established multi-modality fixed-sites and three recently established fixed-sites. This acquisition is expected to generate approximately $6 million in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue for Alliance. The Company's full year 2005 results include four months of operations from this acquisition. Effective October October: see month. 1, 2005, Alliance acquired 100% of the outstanding stock of PET Scans PET scan (pĕt) or positron emission tomography (pŏz`ĭtrŏn' ĭmĭsh`ən təmŏg`rəfē) of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Corp. ("PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. "), a mobile provider of PET and PET/CT PET/CT Positron Emission Tomography and Computed Tomography services primarily to hospitals in 13 states. Alliance acquired or leased 12 PET and PET/CT systems in connection with this acquisition. Annualized revenue from the PSA acquisition is expected to contribute approximately $20 million. The Company's full year 2005 results include three months of operations from this acquisition. In December 2005, Alliance increased its equity interest in a joint venture the Company formed in 2004 with the University of Pittsburgh Medical Center The University of Pittsburgh Medical Center (UPMC) is a leading American healthcare provider and institution for medical research. It consistently ranks in US News and World Report's "Honor Roll" of the approximately 15 best hospitals in America. . This joint venture, Alliance Oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. ("AO"), is designed to partner with hospitals to build and operate radiation oncology radiation oncology n. The branch of radiology that deals with the use of ionizing radiation to treat cancers. radiation oncology centers, with an emphasis on intensity modulated mod·u·late v. mod·u·lat·ed, mod·u·lat·ing, mod·u·lates v.tr. 1. To adjust or adapt to a certain proportion; regulate or temper. 2. radiation therapy ("IMRT IMRT Intensity-modulated radiation therapy Radiation oncology A format for delivering high-dose RT to regions–eg, nasopharynx, that are surrounded by radiation-sensitive areas; in IMRT, a broad radiation field is divided into hundreds of small pencil beams, ") and image guided radiation therapy ("IGRT IGRT Image Guided Radiation Therapy "). Alliance now owns 80% of AO. Amendment to Credit Agreement In the fourth quarter, Alliance amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its Credit Agreement effective December 19, 2005. The amendment to the Credit Agreement contains the following provisions: --The Company's maximum consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: leverage ratio covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the as defined in the Credit Agreement was amended to a level not to exceed 4.00 to 1.00 as of the last day of any fiscal quarter until the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the agreement. Prior to the fourth amendment, the Company's maximum consolidated leverage ratio covenant was 3.75 to 1.00 as of the last day of any fiscal quarter beginning March 31, 2006 to the expiration of the agreement. --The amendment contains a maximum consolidated senior leverage ratio covenant as defined in the amendment to the Credit Agreement to a level not to exceed 3.00 to 1.00 as of the last day of any fiscal quarter. --The amendment increased the Tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. C base rate margin from an annual rate of 1.25% to 1.50% and the Tranche C LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). margin from an annual rate of 2.25% to 2.50%. In connection with the amendment, the Company incurred an amendment fee of 12.5 basis points. 2006 Guidance As previously announced, for full year 2006 the Company expects revenue to range from $428 million to $438 million and Adjusted EBITDA (earnings before interest expense, net of interest income; income taxes; depreciation expense; amortization expense; minority interest expense; non-cash stock-based compensation; and up to a maximum of $750,000 of severance and related costs) to range from $138 million to $146 million. Effective January January: see month. 1, 2006, Alliance will record stock option expense under the provisions of FAS 123(R). The Company estimates that net income will be reduced by approximately $0.03 per diluted share for non-cash stock-based compensation expense. Deficit Reduction Act of 2005 On February February: see month. 8, 2006, the Deficit Reduction Act of 2005 ("DRA DRA Delta Regional Authority DRA Developmental Reading Assessment (educational test) DRA Division of Ratepayer Advocates (California) DRA Data Research Associates DRA Directory and Resource Administrator ") was signed into law by President George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). W. Bush. The DRA provides reimbursement rates for the technical component of certain imaging services, which included MRI and PET, in non-hospital based settings. The reimbursement rates under the DRA will be capped at the lesser of reimbursement under the Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. Part B physician fee schedule, which the Company is reimbursed for retail services, or the Hospital Outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. Prospective Payment System (HOPPS HOPPS Hospital Outpatient Prospective Payment System ) schedule. The technical reimbursement under the Part B physician fee schedule generally allows for higher reimbursement than under HOPPS. For full year 2005, approximately 4% of Alliance's revenue was billed directly to Medicare intermediaries. Based on 2005 revenue, Alliance estimates the reduction in Medicare revenue due to the reimbursement rate decreases included in the DRA would have totaled approximately $6 million. In addition, the DRA also codifies the reduction in reimbursement for multiple images on contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. body parts which was previously announced by the Center for Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. Services ("CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. "). CMS will pay 100% of the technical component of the higher priced imaging procedure and 50% for the technical component of each additional imaging procedure for multiple images of contiguous body parts within a family of codes performed in the same session. Currently, Medicare pays 100% of the technical component of each procedure. CMS will phase in this reimbursement reduction over a two-year period, resulting in a 25% reduction for each additional imaging procedure on contiguous body parts in 2006 and an additional 25% reduction in 2007. The Company believes that the implementation of this reimbursement reduction will not have a significant impact on the financial condition and results of operation beginning in 2006. Fourth Quarter and Full Year 2005 Earnings Conference Call Investors and all others are invited to listen to a conference call discussing fourth quarter and year end 2005 results. The conference call is scheduled for Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February 24, 2006 at 1:00 p.m. Eastern Time. The call will be broadcast live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and can be accessed by visiting the Company's website at www.allianceimaging.com. Click on Audio Presentations in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the website to access the link. The conference call can also be accessed at (866) 425-6193 (United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ) or (973) 935-2981 (International). Interested parties should call at least five minutes prior to the conference call to register. A replay of the call can be accessed until May 24, 2006 by visiting the Company's website or by calling (877) 519-4471 (United States) or (973) 341-3080 (International). The conference call identification number is 7044152. About Alliance Imaging Alliance Imaging is a leading national provider of diagnostic imaging services. Alliance provides imaging services primarily to hospitals and other healthcare providers on a shared and full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full service basis, in addition to operating a growing number of fixed-site imaging centers. The Company had 507 diagnostic imaging systems, including 351 MRI systems and 68 PET or PET/CT systems, and served over 1,000 clients in 44 states at December 31, 2005. Of these 507 diagnostic imaging systems, 73 were located in fixed-sites, which includes systems installed in hospitals or other buildings on or near hospital campuses, medical groups' offices, or medical buildings and retail sites. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For a complete list of risks and uncertainties, please refer to the Risk Factor section of the Company's Form 10-K/A for the year ended December 31, 2004 filed with the Securities and Exchange Commission.
ALLIANCE IMAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(in thousands, except per share amounts)
Fourth Quarter Ended Year Ended
December 31, December 31,
-------------------- -------------------
2004 2005 2004 2005
---------- --------- --------- ---------
Revenues $107,193 $110,192 $432,080 $430,788
Costs and expenses:
Cost of revenues, excluding
depreciation and
amortization 54,965 62,565 217,605 226,294
Selling, general and
administrative expenses 12,673 10,967 48,142 48,077
Employment agreement costs 274 - 2,064 366
Severance and related costs 596 826 1,223 826
Loss on early retirement of
debt 44,393 - 44,393 -
Depreciation expense 20,022 21,194 80,488 82,505
Amortization expense 882 1,235 3,522 3,954
Interest expense, net of
interest income 11,419 9,805 44,039 37,491
Other (income) and expense,
net 116 (68) (484) (399)
---------- --------- --------- ---------
Total costs and expenses 145,340 106,524 440,992 399,114
---------- --------- --------- ---------
Income before income taxes,
minority interest expense,
and earnings from
unconsolidated investees (38,147) 3,668 (8,912) 31,674
Income tax expense (benefit) (13,997) 1,655 (6,770) 13,450
Minority interest expense 417 212 2,373 1,718
Earnings from unconsolidated
investees (852) (747) (4,029) (3,343)
---------- --------- --------- ---------
Net income (loss) $(23,715) $2,548 $(486) $19,849
========== ========= ========= =========
Comprehensive income (loss),
net of taxes:
Net income (loss) $(23,715) $2,548 $(486) $19,849
Unrealized gain (loss) on
hedging transactions, net
of taxes 446 1,450 (278) 3,495
---------- --------- --------- ---------
Comprehensive income (loss),
net of taxes: $(23,269) $3,998 $(764) $23,344
========== ========= ========= =========
Earnings per common share:
Basic $(0.49) $0.05 $(0.01) $0.40
========== ========= ========= =========
Diluted $(0.49) $0.05 $(0.01) $0.39
========== ========= ========= =========
Weighted average number of
shares of common stock and
common stock equivalents:
Basic 48,888 49,569 48,350 49,378
Diluted 48,888 50,028 48,350 50,262
ALLIANCE IMAGING, INC.
ADJUSTED EBITDA
(in thousands)
Adjusted EBITDA represents net income before interest expense, net of
interest income; income taxes; depreciation expense; amortization
expense; minority interest expense; non-cash stock-based compensation;
and loss on early retirement of debt. Effective in the fourth quarter
of 2005, the Company's amended credit agreement also allows for an add
back of $750 in each fiscal year for severance and related costs.
Adjusted EBITDA is not a presentation made in accordance with
accounting principles generally accepted in the United States of
America. Adjusted EBITDA should not be considered in isolation or as a
substitute for net income, cash flows from operating activities and
other income or cash flow statement data prepared in accordance with
generally accepted accounting principles or as a measure of
profitability or liquidity. Adjusted EBITDA is included because the
Company's amended credit agreement uses a measure similar to this to
calculate the Company's compliance with covenants such as interest
coverage ratio (as defined in Section 7.6A of the Company's amended
credit agreement), consolidated leverage ratio (as defined in Section
7.6B of the Company's amended credit agreement) and consolidated
senior leverage ratio (as defined in Section 7.6J of the Company's
amended credit agreement). The Company's failure to comply with these
covenants could result in the amounts borrowed under these
instruments, together with accrued interest and fees, becoming
immediately due and payable. If the Company is not able to refinance
this debt when it becomes due, the Company could become subject to
bankruptcy proceedings. Per the credit agreement, the Company was
required to maintain a maximum consolidated leverage ratio not to
exceed 4.50 to 1.00 and 4.00 to 1.00 as of December 31, 2004 and 2005,
respectively, and maintain a minimum interest coverage ratio in excess
of 2.25 to 1.00 and 2.50 to 1.00 for the quarters ended December 31,
2004 and 2005, respectively. As a result of the fourth amendment to
the credit agreement, beginning December 31, 2005, the Company was
further required to maintain a maximum consolidated senior leverage
ratio not to exceed 3.00 to 1.00 for the duration of the agreement.
The Company was in compliance with these covenants for the quarters
ended December 31, 2004 and 2005. While Adjusted EBITDA is used to
measure the Company's compliance with its debt covenants, it is not
necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculation. The
calculation of Adjusted EBITDA in accordance with the Company's
amended credit agreement is shown below:
4th Quarter Ended Year Ended
December 31, December 31,
2004 2005 2004 2005
--------- -------- --------- ---------
Net income (loss) $(23,715) $2,548 $(486) $19,849
Income tax expense (benefit) (13,997) 1,655 (6,770) 13,450
Interest expense, net of
interest income 11,419 9,805 44,039 37,491
Amortization expense 882 1,235 3,522 3,954
Depreciation expense 20,022 21,194 80,488 82,505
Non-cash stock-based
compensation (included in
selling, general &
administrative) 63 90 322 279
Minority interest expense 417 212 2,373 1,718
Severance and related costs - 750 - 750
Loss on early retirement of
debt 44,393 - 44,393 -
--------- -------- --------- ---------
Adjusted EBITDA $39,484 $37,489 $167,881 $159,996
========= ======== ========= =========
Consolidated leverage ratio, as of the last day of any fiscal quarter,
is defined under our credit agreement as the ratio of the consolidated
total debt as of that date to the consolidated adjusted EBITDA for the
four fiscal quarters ending on that date. As of December 31, 2004 and
2005, our consolidated leverage ratio was as follows:
December 31,
2004 2005
--------- ---------
Consolidated total debt $575,664 $579,582
Last 12 months consolidated Adjusted EBITDA 167,881 159,996
Consolidated leverage ratio 3.43x 3.62x
ALLIANCE IMAGING, INC.
EBITDA AND ADJUSTED EBITDA (continued)
(in thousands)
Consolidated senior leverage ratio, as of the last day of any fiscal
quarter, is defined under our credit agreement as the ratio of the
consolidated senior debt as of that date to the consolidated adjusted
EBITDA for the four fiscal quarters ending on that date. As of
December 31, 2005, our consolidated senior leverage ratio was as
follows:
December 31,
2005
------------
Consolidated senior debt $426,041
Last 12 months consolidated Adjusted EBITDA 159,996
Consolidated senior leverage ratio 2.66x
Interest coverage ratio is defined under our credit agreement as the
ratio of consolidated Adjusted EBITDA to consolidated cash interest
expense for the four fiscal quarter period ending on the last day of
any fiscal quarter. For the quarters ended December 31, 2004 and 2005,
our interest coverage ratio was as follows:
Fourth Quarter Ended December 31,
2004 2005
---------------- ----------------
Last 12 months consolidated Adjusted
EBITDA $167,881 $159,996
Last 12 months consolidated cash
interest expense 47,573 32,052
Interest coverage ratio 3.53x 4.99x
ALLIANCE IMAGING, INC.
SELECTED CONDENSED
CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
December 31, December 31,
2004 2005
------------- -------------
Cash and cash equivalents $20,721 $13,421
Accounts receivable, net 50,146 48,236
Total current assets 90,054 80,512
Equipment, net 353,511 358,949
Total assets 622,198 675,342
Total current liabilities 69,328 79,253
Long-term debt, including current
maturities 575,664 579,582
Total stockholders' deficit (67,528) (40,256)
ALLIANCE IMAGING, INC.
SELECTED STATISTICAL INFORMATION
Fourth Quarter Ended
December 31,
2004 2005
--------- ---------
MRI
Average number of total systems 338.1 332.8
Average number of scan-based systems 290.3 281.7
Scans per system per day (scan-based systems) 9.72 9.27
Total number of scan-based MRI scans 198,964 177,769
Price per scan $355.57 $357.24
Scan-based MRI revenue (in millions) $70.7 $63.5
Non-scan based MRI revenue (in millions) 7.0 6.8
--------- ---------
Total MRI revenue (in millions) $77.7 $70.3
========= =========
PET and PET/CT
Average number of systems 51.5 68.8
Scans per system per day 5.00 5.53
Total number of PET and PET/CT scans 14,613 21,531
Price per scan $1,370 $1,341
Total PET and PET/CT revenue (in millions) $20.1 $28.9
========= =========
Revenue breakdown (in millions)
Total MRI revenue $77.7 $70.3
PET and PET/CT revenue 20.1 28.9
Other modalities and other revenue 9.4 11.0
--------- ---------
Total revenues $107.2 $110.2
========= =========
2004 2005
--------- ---------
Total fixed-site revenue (in millions)
First quarter ended March 31 $12.2 $15.6
Second quarter ended June 30 13.8 17.4
Third quarter ended September 30 14.9 17.1
Fourth quarter ended December 31 15.5 17.4
Year ended December 31 $56.4 $67.5
ALLIANCE IMAGING, INC.
SELECTED STATISTICAL INFORMATION
MRI REVENUE GAP
(in millions)
The Company utilizes the MRI revenue gap as a statistical measure of
its MRI client losses and new client contracts. The MRI revenue gap is
calculated by measuring the difference between (a) the quarterly MRI
revenue run rate lost as a result of clients choosing to terminate
contracts with the Company, excluding clients for which Alliance
provides interim service and clients that the Company elects to
terminate, and (b) projected quarterly new MRI revenue from new client
contracts commencing service in the quarter.
The MRI revenue gap for the last eight calendar quarters and the last
twelve month period ended December 31, 2005 is as follows:
(a) (b)
Revenue New MRI
Lost Revenue Revenue Gap
------------- ------------- --------------
2004
----
First Quarter $(3.4) $10.0 $6.6
Second Quarter (13.7) 10.1 (3.6)
Third Quarter (11.0) 6.5 (4.5)
Fourth Quarter (16.4) 5.9 (10.5)
2005
----
First Quarter (9.4) 5.9 (3.5)
Second Quarter (12.2) 8.8 (3.4)
Third Quarter (14.2) 4.4 (9.8)
Fourth Quarter (8.9) 9.7 0.8
Last Twelve Months Ended
December 31, 2005 ($44.7) $28.8 ($15.9)
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