Alliance Imaging Reports Results for the Fourth Quarter and Year Ended Dec. 31, 2003.Business Editors 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.--(BUSINESS WIRE)--March 2, 2004 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 Dec. 31, 2003. Revenue decreased 1.9% to $101.6 million for the fourth quarter ended Dec. 31, 2003 from revenue of $103.6 million for the same quarter in 2002, a decline of $2.0 million. For the full year of 2003, revenues increased 0.8% to $415.3 million from $412.0 million in the same period of the preceding year, an increase of $3.3 million. Alliance's earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. , adjusted for non-cash stock-based compensation expenses, employment agreement costs, and 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 ("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 "), decreased 7.0% to $40.9 million in the fourth quarter of 2003 from $44.0 million for the corresponding quarter of 2002, a decrease of $3.1 million. For full year of 2003, Adjusted EBITDA before impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges decreased 6.5% to $170.3 million from $182.1 million in 2002, a decrease of $11.8 million. For a more detailed discussion of Adjusted EBITDA and reconciliation to net income (loss), 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: "EBITDA and Adjusted EBITDA" included in the tables following this release. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. S. Viviano, Chairman of the Board and Chief Executive Officer stated: "Alliance achieved its Adjusted EBITDA guidance for the fourth quarter and full year 2003. Alliance continues to focus on stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. our core shared-service MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. business. The positron emission tomography positron emission tomography: see PET scan. positron emission tomography (PET) Imaging technique used in diagnosis and biomedical research. ("PET") modality modality /mo·dal·i·ty/ (mo-dal´i-te) 1. a method of application of, or the employment of, any therapeutic agent, especially a physical agent. 2. continues to grow at a very significant rate, with 2003 PET revenue increasing to $56 million, or 87% over last year. We are also addressing a broader spectrum of needs for our customers by selectively pursing free-standing free-standing Managed care adjective Referring to a physically and, often, financially discrete entity–eg, a surgical center, that is separate from, but may be affiliated with, a hospital; FS facilities may provide ambulatory surgery, emergency or imaging center opportunities, most in partnerships with hospitals and health systems. During 2003, Alliance opened five free-standing MR imaging centers and operated a total of eight centers as of the end of the year. The company has opened one additional center since the beginning of 2004." Alliance incurred the following costs that were excluded from the calculation of Adjusted EBITDA. Non-cash stock-based compensation expenses totaled $0.4 million in each of the fourth quarters of 2003 and 2002, and $1.7 million and $1.9 million in 2003 and 2002, respectively. Employment agreement costs totaled $0.3 million and $2.4 million in the fourth quarter and full year 2003, respectively, and severance and related costs totaled $0.4 million and $2.2 million in the fourth quarter and full year of 2003, respectively. Also excluded from the calculation of Adjusted EBITDA for the year ended Dec. 31, 2003 were non-cash asset impairment charges totaling $73.2 million. These charges, which were recorded in the third quarter of 2003, were related to the impairment of certain older MRI systems, goodwill and customer contract intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and the decline in value of an investment in a joint venture. 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 (excluding non-cash stock-based compensation expenses, employment agreement costs, and severance and related costs) were $0.10 per share for the fourth quarter of 2003 compared to $0.18 per share (excluding non-cash stock-based compensation expenses) for the fourth quarter of 2002. For full year 2003, earnings per share on a diluted basis (excluding non-cash stock-based compensation expenses, impairment charges, employment agreement costs, and severance and related costs) were $0.56 per share compared to $0.74 per share (excluding non-cash stock-based compensation expenses) for the full year of 2002. Earnings per share on a diluted basis totaled $0.14 for the fourth quarter of 2003 compared to $0.17 per share for the fourth quarter of 2002. The net loss per share was $(0.66) for the year ended Dec. 31, 2003 compared to earnings per share on a diluted basis of $0.72 per share for the year ended Dec. 31, 2002. For a more detailed discussion and computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of earnings per share, see the table entitled "Earnings (Loss) Per Share" included in the tables following this release. At Dec. 31, 2003, the company's net debt to last 12 months Adjusted EBITDA was 3.3x. Cash flow provided by operating activities was $32.5 million for the fourth quarter of 2003 compared to $41.1 million for the corresponding period of the preceding year. For the years ended Dec. 31, 2003 and 2002, cash flow from operating activities totaled $129.0 million and $139.0 million, respectively. Capital expenditures were $20.6 million in the fourth quarter of 2003 compared to $19.8 million in the same quarter of 2002. For the years ended Dec. 31, 2003 and 2002, capital expenditures totaled $90.2 million and $70.1 million, respectively. 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 free-standing imaging centers. The company had 472 diagnostic imaging systems, including 363 MRI systems, and 1,344 clients in 44 states at Dec. 31, 2003. Investors and all others are invited to listen to a conference call discussing fourth quarter and full year 2003 results. The conference call is scheduled for March 3, 2004 at 1 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 Web site 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 Web site to access the link. The conference call can also be accessed at 888-689-9529 (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 706-645-0319 (International). Interested parties should call at least 10 minutes prior to the conference call to register. A replay of the call can be accessed until April 2, 2004 by visiting the company's Web site or by calling 800-642-1687 (United States) or 706-645-9291 (International). The conference call replay identification number is 5761622. This press release contains 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. . 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2002 filed with the Securities and Exchange Commission.
ALLIANCE IMAGING INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share amounts)
Fourth Quarter Year
Ended Ended
December 31, December 31,
2002 2003 2002 2003
Revenues $103,556 $101,555 $412,033 $415,283
Costs and expenses:
Operating expenses, excluding
depreciation 48,174 50,543 184,050 198,456
Selling, general and
administrative expenses 11,367 10,085 45,930 46,567
Employment agreement costs - 321 - 2,446
Severance and related costs - 391 - 2,246
Non-cash stock-based
compensation 418 418 1,900 1,672
Impairment charges - - - 73,225
Depreciation expense 17,679 21,116 69,384 77,675
Amortization expense 805 868 2,502 2,897
Interest expense, net of
interest income 11,591 10,515 47,705 43,589
Other (income) expense (831) 43 (872) (200)
Total costs and expenses 89,203 94,300 350,599 448,573
Income (loss) before income
taxes 14,353 7,255 61,434 (33,290)
Income tax expense (benefit) 5,956 722 25,495 (1,680)
Net income (loss) $8,397 $6,533 $35,939 $(31,610)
Earnings (loss) per common share:
Basic $0.18 $0.14 $0.76 $(0.66)
Diluted $0.17 $0.14 $0.72 $(0.66)
Weighted average number of
shares of common
stock and common stock
equivalents:
Basic 47,683 47,959 47,595 47,872
Diluted 49,345 48,304 49,793 47,872
ALLIANCE IMAGING INC.
EBITDA AND ADJUSTED EBITDA
(in thousands)
EBITDA represents earnings before interest expense, net, other
income, income taxes, depreciation and amortization expense. Adjusted
EBITDA represents EBITDA adjusted for employment agreement costs,
severance and related costs, impairment charges, and non-cash
stock-based compensation expenses. EBITDA and Adjusted EBITDA are not
presentations made in accordance with accounting principles generally
accepted in the United States of America. EBITDA and Adjusted EBITDA
should not be considered in isolation or as substitutes 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 measures of profitability or liquidity.
EBITDA and Adjusted EBITDA are included to provide additional
information with respect to a measure that certain investment analysts
use as a benchmark for measuring our operating performance, our
ability to satisfy our debt service, capital expenditure and working
capital requirements, and because certain covenants in our debt
service instruments are based on similar measures. While EBITDA and
Adjusted EBITDA are used as measures of operations and the ability to
meet debt service requirements, they are not necessarily comparable to
other similarly titled captions of other companies due to differences
in methods of calculation. The calculations of EBITDA and Adjusted
EBITDA are shown below:
Fourth Quarter Year
Ended Ended
December 31, December 31,
2002 2003 2002 2003
Net income (loss) $8,397 $6,533 $35,939 $(31,610)
Depreciation expense 17,679 21,116 69,384 77,675
Amortization expense 805 868 2,502 2,897
Interest expense, net 11,591 10,515 47,705 43,589
Other (income) expense (831) 43 (872) (200)
Income tax expense (benefit) 5,956 722 25,495 (1,680)
EBITDA 43,597 39,797 180,153 90,671
Employment agreement costs - 321 - 2,446
Severance and related costs - 391 - 2,246
Impairment charges - - - 73,225
Non-cash stock-based
compensation 418 418 1,900 1,672
Adjusted EBITDA $44,015 $40,927 $182,053 $170,260
Revenue $103,556 $101,555 $412,033 $415,283
EBITDA margin 42.1% 39.2% 43.7% 21.8%
Adjusted EBITDA margin 42.5% 40.3% 44.2% 41.0%
ALLIANCE IMAGING INC.
EARNINGS (LOSS) PER SHARE
(in thousands, except per share amounts)
Earnings (loss) per share represents net income (loss) divided by
the weighted average number of shares of common stock and, in the case
of periods that the company had net income, common stock equivalents
outstanding during the quarter. Earnings (loss) per share, excluding
employment agreement costs, severance and related costs, impairment
charges, and non-cash stock-based compensation expenses represent the
add back of the above noted items, net of tax, divided by the weighted
average number of shares of common stock and, in the case of periods
that the company had net income, common stock equivalents outstanding
during the quarter. Earnings (loss) per share, excluding employment
agreement costs, severance and related costs, impairment charges, and
non-cash stock-based compensation expenses are not a presentation made
in accordance with accounting principles generally accepted in the
United States of America. Earnings (loss) per share, excluding
employment agreement costs, severance and related costs, impairment
charges, and non-cash stock-based compensation expenses should not be
considered in isolation or as a substitute for earnings (loss) per
share, net income, and other income statement data prepared in
accordance with generally accepted accounting principles or as a
measure of profitability. Earnings (loss) per share, excluding
employment agreement costs, severance and related costs, impairment
charges, and non-cash stock-based compensation expenses is included to
provide additional information with respect to a measure that certain
investment analysts use as a benchmark for our operating performance
and because certain covenants in our debt service instruments are
based on similar measures. While earnings (loss) per share, excluding
employment agreement costs, severance and related costs, impairment
charges, and non-cash stock-based compensation expenses is used as a
measure of operations and the ability to meet debt service
requirements, it is not necessarily comparable to other similarly
titled captions of other companies due to differences in methods of
calculation. The calculations of earnings (loss) per share and
earnings (loss) per share, excluding employment agreement costs,
severance and related costs, impairment charges, and non-cash
stock-based compensation expenses are shown below:
Fourth Quarter Year
Ended Ended
December 31, December 31,
2002 2003 2002 2003
Net income (loss), as reported $8,397 $6,533 $35,939 $(31,610)
Less adjustment to net income
(loss), as reported,
to effective income tax rate of
41.5% - (2,289) - (2,289)
Add employment agreement costs - 321 - 2,446
Less income tax effect of
employment agreement costs - (133) - (1,015)
Add severance and related costs - 391 - 2,246
Less income tax effect of
severance and related costs - (162) - (932)
Add impairment charges - - - 73,225
Less income tax effect of
impairment charges - - - (15,964)
Add non-cash stock-based
compensation 418 418 1,900 1,672
Less income tax effect of non-cash
stock-based compensation (173) (173) (789) (694)
245 (1,627) 1,111 58,695
Income excluding employment
agreement costs,
severance and related costs,
impairment charges,
non-cash stock-based
compensation $8,642 $4,906 $37,050 $27,085
Earnings (loss) per share - diluted
As reported $0.17 $0.14 $0.72 $(0.66)
Excluding employment agreement costs,
severance and related costs,
impairment charges and non-cash
related costs and non-cash
stock-based compensation $0.18 $0.10 $0.74 $0.56
Weighted average number of shares
outstanding:
Diluted (in periods reported
with a loss) 47,872
Diluted (in periods reported
with income) 49,345 48,304 49,793 48,414
ALLIANCE IMAGING INC.
SELECTED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
December December
31, 31,
2002 2003
(Unaudited)
Cash and cash equivalents $31,413 $20,931
Accounts receivable, net 49,830 45,276
Total current assets 99,502 81,670
Equipment, net 358,607 352,631
Total assets 683,058 622,163
Total current liabilities 55,923 57,488
Long-term debt, including current maturities 608,862 581,247
Total stockholders' deficit (42,309) (70,798)
ALLIANCE IMAGING INC.
SELECTED STATISTICAL INFORMATION
Fourth Quarter
Ended
December 31,
2002 2003
MRI scan-based
Average number of scan-based systems 308.0 301.2
Scans per system per day 9.55 9.36
Total number of MRI scans 211,900 199,800
Price per scan $370.6 $357.8
Revenue breakdown (in millions)
Total scan-based MRI revenue $78.5 $71.5
PET revenue 9.7 15.4
Non-scan based MRI and other modalities 15.4 14.7
Total revenues $103.6 $101.6
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