Alliance Imaging Reports Results for the Second Quarter and Six Months Ended June 30, 2003.Business Editors/Health/Medical Writers 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)--Aug. 12, 2003 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, 2003. Revenues increased 1.5% to $105.3 million for the second quarter ended June 30, 2003 from revenues of $103.8 million for the same quarter in 2002, an increase of $1.5 million. For the first six months of 2003, revenues increased 2.7% to $208.1 million from $202.6 million in the same period of the preceding year, a $5.5 million increase. 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 7.2% to $43.6 million for the second quarter of 2003 from $47.0 million for the corresponding quarter of 2002, a decrease of $3.4 million. For the first six months of 2003, Adjusted EBITDA decreased 5.5% to $85.6 million from $90.6 million in the same period of 2002, a decrease of $5.0 million. 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 Adjusted EBITDA, 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. Alliance incurred the following costs that were excluded from the calculation of Adjusted EBITDA. Non-cash stock-based compensation expenses totaled $0.4 million and $0.5 million in the second quarter of 2003 and 2002, respectively, and $0.8 million and $1.1 million in the first six months of 2003 and 2002, respectively. In the second quarter of 2003, Alliance recorded $1.7 million of costs associated with an employment agreement and $1.5 million of severance and related costs. For the first six months of 2003, Alliance recorded $1.7 million in costs associated with an employment agreement and $1.7 million in severance and related costs. 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 $0.16 per share for the second quarter of 2003 compared with $0.20 per share (excluding non-cash stock-based compensation expenses) for the second quarter of 2002. Earnings per share on a diluted basis (excluding non-cash stock-based compensation expenses, employment agreement costs, and severance and related costs) were $0.31 per share for the first six months of 2003 compared with $0.36 per share (excluding non-cash stock-based compensation expenses) for the corresponding period of 2002. Earnings per share on a diluted basis were $0.12 for the second quarter of 2003 compared with $0.19 per share for the second quarter of 2002. Earnings per share on a diluted basis were $0.26 and $0.35 for the first six months of 2003 and 2002, respectively. For a more detailed discussion and computation of earnings per share, see the table entitled "Earnings Per Share -- Diluted" included in the tables following this release. At June 30, 2003, the company's net debt to last twelve month Adjusted EBITDA was 3.3x. Cash flow provided by operating activities was $28.9 million in the second quarter of 2003 compared with $29.3 million in the corresponding period of the preceding year. For the six months ended June 30, 2003 and 2002, cash flow from operating activities totaled $59.6 million and $61.0 million, respectively. Capital expenditures were $24.7 million in the second quarter of 2003 compared with $14.3 million in the same quarter of 2002. For the six months ended June 30, 2003 and 2002, capital expenditures totaled $50.5 million and $37.3 million, respectively. 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, president and chief executive officer stated, "We are pleased to report that our results are slightly above the high end of our guidance range for the second quarter. Our 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 rapid rate, with PET revenue in the first half of 2003 increasing 109% over the first six months of last year. Our focus on our 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 initiative has resulted in the opening of two centers in the first half of the year, with another three centers presently scheduled to open in the second half of 2003." Alliance Imaging Inc. 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 461 diagnostic imaging systems, including 362 MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. systems, and 1,331 clients in 43 states at June 30, 2003. Investors and all others are invited to listen to a conference call discussing second quarter results. The conference call is scheduled for Wednesday Wednesday: see week. , Aug. 13, 2002 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 ten minutes prior to the conference call to register. A replay of the call can be accessed until Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , Sept. 12, 2003 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 1898275. This news 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)
Quarter Ended Six Months Ended
June 30, June 30,
2002 2003 2002 2003
Revenues $103,823 $105,333 $202,557 $208,068
Costs and expenses:
Operating expenses, excluding
depreciation 44,789 48,893 88,883 98,171
Selling, general and
administrative expenses 12,048 12,822 23,112 24,331
Employment agreement costs -- 1,654 -- 1,654
Severance and related costs -- 1,506 -- 1,716
Non-cash stock-based
compensation 532 418 1,064 836
Depreciation expense 17,301 18,719 34,095 36,604
Amortization expense 575 677 1,133 1,353
Interest expense, net of
interest income 12,107 11,131 24,359 22,223
Other income -- (149) -- (243)
Total costs and expenses 87,352 95,671 172,646 186,645
Income before income taxes 16,471 9,662 29,911 21,423
Provision for income taxes 6,836 4,009 12,414 8,890
Net income $9,635 $5,653 $17,497 $12,533
Earnings per common share:
Basic $0.20 $0.12 $0.37 $0.26
Diluted $0.19 $0.12 $0.35 $0.26
Weighted average number of
shares of common stock
and common stockm
equivalents:
Basic 47,582 47,840 47,553 47,787
Diluted 50,191 48,498 50,072 48,534
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, 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. 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, the company's ability to satisfy its debt
service, capital expenditure and working capital requirements, and
because certain covenants in the company's 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:
Quarter Ended Six Months Ended
June 30, June 30,
2002 2003 2002 2003
Net income $9,635 $5,653 $17,497 $12,533
Depreciation expense 17,301 18,719 34,095 36,604
Amortization expense 575 677 1,133 1,353
Interest expense, net 12,107 11,131 24,359 22,223
Other income -- (149) -- (243)
Provision for income taxes 6,836 4,009 12,414 8,890
EBITDA 46,454 40,040 89,498 81,360
Employment agreement costs -- 1,654 -- 1,654
Severance and related costs -- 1,506 -- 1,716
Non-cash stock-based
compensation 532 418 1,064 836
Adjusted EBITDA $46,986 $43,618 $90,562 $85,566
Revenue $103,823 $105,333 $202,557 $208,068
EBITDA margin 44.7% 38.0% 44.2% 39.1%
Adjusted EBITDA margin 45.3% 41.4% 44.7% 41.1%
ALLIANCE IMAGING INC.
EARNINGS PER SHARE -- DILUTED
(in thousands, except per share amounts)
Earnings per share -- diluted represents net income divided by the
weighted average number of common stock and common stock equivalents
outstanding during the quarter. Earnings per share -- diluted,
excluding employment agreement costs, severance and related costs 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 common stock and common stock equivalents outstanding during
the quarter. Earnings per share -- diluted, excluding employment
agreement costs, severance and related costs and non-cash stock-based
compensation expenses are not a presentation made in accordance with
accounting principles generally accepted in the United States.
Earnings per share -- diluted, excluding employment agreement costs,
severance and related costs and non-cash stock-based compensation
expenses should not be considered in isolation or as a substitute for
earnings per share -- diluted, net income, and other income statement
data prepared in accordance with generally accepted accounting
principles or as a measure of profitability. Earnings per share --
diluted, excluding employment agreement costs, severance and related
costs 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 per share -- diluted,
excluding employment agreement costs, severance and related costs 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 per share -- diluted and earnings per share
-- diluted, excluding employment agreement costs, severance and
related costs and non-cash stock-based compensation expenses are shown
below:
Quarter Ended Six Months
Ended
June 30, June 30
2002 2003 2002 2003
Net income, as reported $9,635 $5,653 $17,497 $12,533
Add employment agreement costs -- 1,654 -- 1,654
Less income tax effect of employment
agreement costs -- (686) -- (686)
Add severance and related costs -- 1,506 -- 1,716
Less income tax effect of severance
and related costs -- (625) -- (712)
Add non-cash stock-based compensation 532 418 1,064 836
Less income tax effect of non-cash
stock based compensation (221) (173) (442) (347)
311 2,094 622 2,461
Income excluding employment agreement
costs, severance and related
costs and non-cash stock-based
compensation $9,946 $7,747 $18,119 $14,994
Earnings per share -- diluted
As reported $0.19 $0.12 $0.35 $0.26
Excluding employment agreement
costs, severance and
related costs and non-cash stock
based compensation expenses $0.20 $0.16 $0.36 $0.31
Weighted average number of shares of
common stock and common stock
equivalents -- diluted 50,191 48,498 50,072 48,534
ALLIANCE IMAGING INC.
SELECTED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
Dec. 31, June 30,
2002 2003
Cash and cash equivalents $31,413 $25,600
Accounts receivable, net 49,830 51,669
Total current assets 99,502 96,960
Equipment, net 358,607 376,572
Total assets 683,058 707,518
Total current liabilities 55,923 58,450
Long-term debt, including current maturities 608,862 609,464
Stockholders' deficit (42,309) (28,458)
ALLIANCE IMAGING INC.
SELECTED STATISTICAL INFORMATION
Second Quarter
Ended
June 30,
2002 2003
MRI scan-based
Average number of scan-based systems 300.5 307.5
Scans per system per day 9.97 9.46
Total number of MRI scans 224,400 209,700
Price per scan $364.2 $363.7
PET
Number of owned systems at quarter end 19 35
Total number of systems (including unconsolidated
joint ventures) at quarter end 22 37
Revenue breakdown (in millions)
Scan-based MRI revenue $81.7 $76.2
PET revenue 7.0 13.5
Non-scan based MRI and other modalities 15.1 15.6
Total revenues $103.8 $105.3
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