Alliance Imaging Reports Results for the Second Quarter and First Six Months Ended June 30, 2006; Raises Full Year 2006 Adjusted EBITDA Guidance.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 second quarter and first six months ended June June: see month. 30, 2006. Second Quarter and First Six Months 2006 Financial Results Revenue for the second quarter of 2006 increased 6.3% to $115.3 million from $108.4 million in the comparable 2005 quarter. For the first six months of 2006, revenue was $230.6 million compared to $214.4 million in the same period of 2005, an increase of 7.6%. 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 $44.9 million in the second quarter, a 7.4% increase compared to $41.8 million in the same quarter a year ago. "Adjusted EBITDA" as defined under the terms of Alliance's Credit Agreement, is earnings before interest expense, net of interest income; income taxes; depreciation expense; amortization expense; minority interest expense; non-cash share-based compensation; 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 each fiscal year; the tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax settlement (discussed below); and other non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. . 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. For the first six months of 2006, Adjusted EBITDA totaled $88.5 million compared to $83.0 million in the first six months of 2005, an increase of 6.7%. 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 $0.10 per share for the second quarter of 2006, compared to $0.12 per share in the comparable period of 2005. Non-cash share-based compensation 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 $0.01 in the second quarter of 2006. The tentative class action lawsuit settlement, net of taxes (discussed below) reduced diluted earnings per share by $0.03 in the second quarter of 2006. Earnings per share on a diluted basis were $0.20 and $0.24 per share for the first six months of 2006 and 2005, respectively. Non-cash share-based compensation and severance and related costs reduced diluted earnings per share by $0.02 in the first six months of 2006. The tentative class action lawsuit settlement, net of taxes (discussed below), reduced diluted earnings per share by $0.03 in the first six months of 2006. Cash flows provided by operating activities was $28.9 million in the second quarter of 2006 compared to $23.6 million in the corresponding quarter of 2005, and totaled $48.4 million and $50.7 million in the first six months of 2006 and 2005, respectively. Capital expenditures in the second quarter of 2006 were $18.7 million compared to $15.5 million in the second quarter of 2005, and were $43.0 million and $28.9 million for the first six months of 2006 and 2005, respectively. Alliance opened four new fixed-sites in the second quarter of 2006 and has opened five new fixed-sites in the first six months of 2006. Alliance's total 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. (including current maturities) decreased $20.9 million to $558.7 million as of June 30, 2006 from $579.6 million as of December December: see month. 31, 2005. Cash and cash equivalents decreased $1.0 million to $12.4 million at June 30, 2006 from $13.4 million at December 31, 2005. 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, "We are pleased with our continued progress, especially in the context of a very challenging healthcare services environment." Tentative Class Action Lawsuit Settlement As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the Company's public filings, in May 2005 Alliance was served with a complaint alleging wage and hour claims on behalf of a class of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 400 former and current California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). employees in which the plaintiffs alleged violations of California's wage, meal period, and break time laws and regulations. On July July: see month. 19, 2006, the Company and the Plaintiffs entered into a tentative settlement of the class action lawsuit pursuant to which all claims would be dismissed dis·miss tr.v. dis·missed, dis·miss·ing, dis·miss·es 1. To end the employment or service of; discharge. 2. with prejudice prejudice, unsubstantiated prejudgment of an individual or group, favorable or unfavorable in character, tending to action in a consonant direction. The hostility that prejudice can engender and the discrimination to which it may lead on the part of a dominant in consideration of a cash payment of $2.5 million. The settlement is subject to court approval and a hearing has been scheduled for September September: see month. 1, 2006 at which the court will consider the parties' joint motion for preliminary approval and conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. certification of a class. As previously mentioned, this tentative settlement has the effect of reducing second quarter and first half 2006 diluted earnings per share by $0.03. Pursuant to the definition of Adjusted EBITDA in the Company's Credit Agreement, this amount is excluded from the calculation of Adjusted EBITDA. For financial reporting purposes, the $2.5 million charge is included in the line item entitled "Cost of revenues, excluding depreciation and amortization," in the Company's Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. 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: Statements of Operations and Comprehensive Income. Full Year 2006 Guidance The Company's previous guidance was for revenue to range from $445 million to $453 million and Adjusted EBITDA to range from $157 million to $163 million. Alliance is raising its full year Adjusted EBITDA 2006 guidance. The Company's revenue guidance remains unchanged and is expected to range from $445 million to $453 million. Alliance's Adjusted EBITDA is now expected to range from $163 million to $168 million. The Company's revenue and Adjusted EBITDA guidance reflects five less scanning scanning /scan·ning/ (skan´ing) 1. the act of examining by passing over an area or organ with a sensing device. 2. scanning speech. days in the second half of 2006 compared to the first half of the year, representing a 4% reduction in scanning days. Consistent with previous guidance, the Company expects capital expenditures to range from $85 million to $90 million, long-term debt, net of the change in cash and cash equivalents, is expected to decrease by $25 million to $30 million, and the Company expects to open 10 to 15 fixed-sites in 2006, a portion of which are planned to replace mobile service to the Company's current customers. The Company's income tax rate is expected to total approximately 41% of pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. . Second Quarter 2006 Earnings Conference Call Investors and all others are invited to listen to a conference call discussing first quarter 2006 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 , August 4, 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 (888) 247-2250 (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) 935-8452 (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 November November: see month. 4, 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 7666992. About Alliance Imaging Alliance Imaging is a leading national provider of shared-service and fixed-site diagnostic imaging services, based upon annual revenue and number of diagnostic imaging systems deployed. Alliance provides imaging and therapeutic 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 500 diagnostic imaging systems, including 335 MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. systems and 74 PET or PET/CT PET/CT Positron Emission Tomography and Computed Tomography systems, and served over 1,000 clients in 43 states at June 30, 2006. Of these 500 diagnostic imaging systems, 72 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 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 December 31, 2005 filed with the Securities and Exchange Commission.
ALLIANCE IMAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(Unaudited)
(in thousands, except per share amounts)
Second Quarter First Six Months
Ended Ended
June 30, June 30,
------------------- -------------------
2005 2006 2005 2006
--------- --------- --------- ---------
Revenues $108,434 $115,305 $214,398 $230,648
Costs and expenses:
Cost of revenues, excluding
depreciation and amortization 53,892 62,593 107,828 122,460
Selling, general and
administrative expenses 13,677 13,611 25,363 27,367
Employment agreement costs 92 - 366 -
Severance and related costs - 47 - 536
Depreciation expense 20,463 20,919 40,926 41,920
Amortization expense 901 1,229 1,782 2,473
Interest expense, net of
interest income 9,508 10,074 18,569 20,290
Other (income) and expense,
net (55) (256) (387) 472
--------- --------- --------- ---------
Total costs and expenses 98,478 108,217 194,447 215,518
--------- --------- --------- ---------
Income before income taxes,
minority interest expense,
and earnings from
unconsolidated investees 9,956 7,088 19,951 15,130
Income tax expense 4,169 3,535 8,301 7,009
Minority interest expense 544 495 956 1,035
Earnings from unconsolidated
investees (912) (1,977) (1,596) (3,017)
--------- --------- --------- ---------
Net income $6,155 $5,035 $12,290 $10,103
========= ========= ========= =========
Comprehensive income, net of
taxes:
Net income $6,155 $5,035 $12,290 $10,103
Unrealized (loss) gain on
hedging transactions, net
of taxes (1,144) 304 1,601 1,121
--------- ========= --------- =========
Comprehensive income, net of
taxes: $5,011 $5,339 $13,891 $11,224
========= ========= ========= =========
Earnings per common share:
Basic $0.12 $0.10 $0.25 $0.20
========= ========= ========= =========
Diluted $0.12 $0.10 $0.24 $0.20
========= ========= ========= =========
Weighted average number of
shares of common stock and
common stock equivalents:
Basic 49,286 49,758 49,210 49,684
Diluted 50,270 50,232 50,290 50,107
ALLIANCE IMAGING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
Dec. 31, June 30,
2005 2006
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $13,421 $12,423
Accounts receivable, net of allowance for
doubtful accounts 48,236 53,478
Deferred income taxes 6,186 18,157
Prepaid expenses and other current assets 3,686 4,998
Other receivables 8,983 11,074
--------- ---------
Total current assets 80,512 100,130
Equipment, at cost 752,128 760,475
Less accumulated depreciation (393,179) (404,275)
--------- ---------
Equipment, net 358,949 356,200
Goodwill 154,656 154,612
Other intangible assets, net 39,071 38,155
Deferred financing costs, net 8,236 7,628
Other assets 33,918 25,104
--------- ---------
Total assets $675,342 $681,829
========= =========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $23,672 $14,646
Accrued compensation and related expenses 14,088 15,954
Accrued interest payable 4,561 4,689
Income taxes payable 87 76
Other accrued liabilities 29,064 31,248
Current portion of long-term debt 7,781 7,016
--------- ---------
Total current liabilities 79,253 73,629
Long-term debt, net of current portion 418,260 398,158
Senior subordinated notes 153,541 153,541
Minority interests and other liabilities 4,400 4,229
Deferred income taxes 60,144 79,073
--------- ---------
Total liabilities 715,598 708,630
Stockholders' deficit:
Common stock 496 498
Additional paid-in deficit (11,876) (9,647)
Accumulated comprehensive income 3,217 4,338
Accumulated deficit (32,093) (21,990)
--------- ---------
Total stockholders' deficit (40,256) (26,801)
--------- ---------
Total liabilities and stockholders' deficit $675,342 $681,829
========= =========
ALLIANCE IMAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Six Months Ended
June 30,
-----------------
2005 2006
-------- --------
Operating activities:
Net income $12,290 $10,103
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for doubtful accounts 1,478 1,593
Non-cash share-based compensation 126 1,308
Depreciation and amortization 42,708 44,393
Amortization of deferred financing costs 1,462 794
Distributions greater than (less than) equity in
undistributed income of investees 271 (188)
Deferred income taxes 7,236 6,354
(Gain) loss on sale of assets (387) 472
Changes in operating assets and liabilities:
Accounts receivable (1,203) (6,903)
Prepaid expenses and other current assets (1,554) (1,312)
Other receivables (2,901) (2,091)
Other assets (2,243) (848)
Accounts payable (11,977) (8,915)
Accrued compensation and related expenses (1,379) 1,866
Accrued interest payable 2,737 128
Income taxes payable (63) (11)
Other accrued liabilities 3,802 1,934
Minority interests and other liabilities 342 (259)
-------- --------
Net cash provided by operating activities 50,745 48,418
-------- --------
Investing activities:
Equipment purchases (28,948) (43,035)
Decrease in deposits on equipment 3,419 10,388
Proceeds from sale of assets 1,251 2,322
-------- --------
Net cash used in investing activities (24,278) (30,325)
-------- --------
Financing activities:
Principal payments on equipment debt (2,972) (1,934)
Principal payments on term loan facility (25,000) (2,675)
Principal payments on revolving loan facility (15,000) (28,825)
Proceeds from revolving loan facility 15,000 13,500
Payments of debt issuance costs (211) (186)
Proceeds from exercise of employee stock options 1,052 1,029
-------- --------
Net cash used in financing activities (27,131) (19,091)
-------- --------
Net decrease in cash and cash equivalents (664) (998)
Cash and cash equivalents, beginning of period 20,721 13,421
-------- --------
Cash and cash equivalents, end of period $20,057 $12,423
======== ========
ALLIANCE IMAGING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(Unaudited)
(in thousands)
Six Months Ended
June 30,
-----------------
2005 2006
-------- --------
Supplemental disclosure of cash flow information:
Interest paid $14,580 $19,676
Income taxes paid, net of refunds 1,291 767
Supplemental disclosure of non-cash investing and
financing activities:
Net book value of assets exchanged $3,679 $5,439
Capital lease obligations assumed for the purchase
of equipment debt - 1,839
Equipment debt transferred to unconsolidated
investee - (2,772)
Comprehensive income from hedging transactions, net
of taxes 1,601 1,121
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 share-based compensation;
a maximum of $750,000 of severance and related costs in each fiscal
year; the tentative class action lawsuit settlement, and other
non-cash charges. 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 4.00 to 1.00 as of both June 30, 2005 and 2006, and maintain a
minimum interest coverage ratio in excess of 2.50 to 1.00 and 2.75 to
1.00 for the quarters ended June 30, 2005 and 2006, 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 June 30, 2005 and 2006. 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:
2nd Quarter Six Months Ended
Ended June 30, June 30,
2005 2006 2005 2006
-------- -------- -------- --------
Net income $6,155 $5,035 $12,290 $10,103
Income tax expense 4,169 3,535 8,301 7,009
Interest expense, net of
interest income 9,508 10,074 18,569 20,290
Amortization expense 901 1,229 1,782 2,473
Depreciation expense 20,463 20,919 40,926 41,920
Non-cash share-based
compensation (included in
selling, general and
administrative expenses) 63 593 126 1,308
Minority interest expense 544 495 956 1,035
Severance and related costs - 47 - 536
Tentative class action lawsuit
settlement (included in cost
of revenues, excluding
depreciation and amortization) - 2,500 - 2,500
Other non-cash charges
(included in other income and
expenses, net) - 455 - 1,313
-------- -------- -------- --------
Adjusted EBITDA $41,803 $44,882 $82,950 $88,487
======== ======== ======== ========
ALLIANCE IMAGING, INC.
ADJUSTED EBITDA (continued)
(in thousands)
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 June 30, 2005 and
2006, our consolidated leverage ratio was as follows:
June 30,
2005 2006
--------- ---------
Consolidated total debt $547,692 $558,715
Last 12 months consolidated Adjusted EBITDA 166,597 165,533
Consolidated leverage ratio 3.29x 3.38x
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 June
30, 2006, our consolidated senior leverage ratio was as follows:
June 30,
2006
---------
Consolidated senior debt $405,174
Last 12 months consolidated Adjusted EBITDA 165,533
Consolidated senior leverage ratio 2.45x
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. As of June 30, 2005 and 2006, our interest
coverage ratio was as follows:
June 30,
2005 2006
--------- ---------
Last 12 months consolidated Adjusted EBITDA $166,597 $165,533
Last 12 months consolidated cash interest expense 44,905 37,148
Interest coverage ratio 3.71x 4.46x
ALLIANCE IMAGING, INC.
SELECTED STATISTICAL INFORMATION
Second Quarter
Ended
June 30,
2005 2006
-------- --------
MRI
Average number of total systems 336.4 323.0
Average number of scan-based systems 285.2 274.1
Scans per system per day (scan-based systems) 9.61 9.38
Total number of scan-based MRI scans 195,479 179,869
Price per scan $354.60 $361.54
Scan-based MRI revenue (in millions) $69.3 $65.0
Non-scan based MRI revenue (in millions) 6.9 6.6
-------- --------
Total MRI revenue (in millions) $76.2 $71.6
======== ========
PET and PET/CT
Average number of systems 52.4 69.1
Scans per system per day 5.46 5.89
Total number of PET and PET/CT scans 17,025 24,734
Price per scan $1,327 $1,314
Total PET and PET/CT revenue (in millions) $22.7 $32.9
======== ========
Revenue breakdown (in millions)
Total MRI revenue $76.2 $71.6
PET and PET/CT revenue 22.7 32.9
Other modalities and other revenue 9.5 10.8
-------- --------
Total revenues $108.4 $115.3
======== ========
Total fixed-site revenue (in millions) $17.4 $18.9
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 June 30, 2006 is as follows:
(a) (b)
Revenue New MRI
Lost Revenue Revenue
Gap
--------- --------- ---------
2004
----------------------------------------
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
2006
----------------------------------------
First Quarter (10.2) 6.4 (3.8)
Second Quarter (6.4) 6.2 (0.2)
Last Twelve Months Ended
June 30, 2006 ($39.7) $26.7 ($13.0)
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