Alliance Imaging announces record first quarter results; 30% revenue increase, 40% increase in "core" earnings; Ninth consecutive quarter of increased profits.ORANGE, Calif.--(BW HealthWire)--April 23, 1997--Alliance Imaging, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SCAN), a leading nationwide provider of outsourced radiology radiology, branch of medicine specializing in the use of X rays, gamma rays, radioactive isotopes, and other forms of radiation in the diagnosis and treatment of disease. services and high technology diagnostic imaging systems, today announced record results for the first quarter ended March 31, 1997. Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Richard N. Zehner, said, "Operationally and financially, 1997 has started strongly. We are confident that we can maintain this momentum as we continue to grow our operations nationwide and introduce new value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. ." Quarterly Results Revenues were $19.1 million compared to $14.7 million in the 1996 period, an increase of 30%. Income before taxes and extraordinary gain totaled $2.5 million in the 1997 quarter, rising 58% from 1996's level of $1.6 million. Income before extraordinary gain increased 25% to $1.7 million from $1.4 million, and "core" earnings per share (i.e., operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before after tax) rose 40% to $0.14 in this year's first quarter from $0.10 in 1996. Alliance reported net earnings of $4.9 million, or $0.41 per common share, for the first quarter of 1997. This includes an extraordinary gain of $1.3 million, or $0.11 per common share, and $1.9 million, or $0.16 per common share, on the excess of the carrying amount of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. repurchased over consideration paid upon the completion of the refinancing Refinancing An extension and/or increase in amount of existing debt. transactions that began in the fourth quarter of 1996. Net income appreciated less rapidly than income before taxes because the Company now has a substantially higher tax rate than in prior years. The effective income tax rate increased to 32.9% in 1997 from 14.9% in 1996 because the Company's taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. in 1997 is expected to exceed remaining available net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . Assuming the same tax rate in 1996 as in 1997, first quarter 1996 core earnings per share would have been $0.07. Core earnings per share for the 1997 quarter of $0.14 represent a 100% increase over that amount. Zehner stated "We are very pleased with the exceptional results posted in this year's first quarter. Compared to the 1996 quarter, revenues increased 30% with approximately 16% of this increase related to internal growth. "Also, earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Performance Factors Zehner attributed the strong results to continued strength in the Company's core business, an increase in total scans performed resulting from investments in new imaging systems, recently implemented marketing programs and acquisitions made in 1996. Zehner said, "Increased investment in new imaging systems together with our acquisition of several smaller imaging providers in 1996 enabled us to generate a significant increase in the number of scans performed. Also, the initial results of the Company's new customer-oriented marketing programs have produced a greater number of referrals from physicians." Zehner added, "We performed over 40,000 MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. procedures this past quarter compared to about 30,000 a year ago." "The industry is experiencing a solid growth phase. The improvement in MRI technology, which allows a broader range of diagnostic applications, is a significant factor in the increased demand for the Company's systems and services," continued Zehner. "Our advanced scanners provide the highest quality imaging available and make us a leading candidate for both replacement and new contracts. "Just recently, we announced the signing of seven year service contracts with two hospitals: Washington Hospital in Fremont, California For the unincorporated community in Yolo County, California, see . Fremont (IPA: /ˈfriːmɒnt/) is a city in California that was incorporated on January 23, 1956, from the merger of five smaller communities: and CGH CGH Comparative Genomic Hybridization CGH Changi General Hospital (Singapore) CGH Computer-Generated Hologram CGH Community General Hospital (Syracuse, NY) Medical Center in Sterling, Illinois Sterling is a city in Whiteside County, Illinois, United States. The population was 15,451 at the 2000 census. Sterling has long been associated with manufacturing and the steel industry. Geography Sterling is located at (41. . We will be providing a wide range of services including patient scheduling, billing, collections and managed care contracting." Acquisitions Revenues during the quarter were impacted favorably by acquisitions that were completed during the second and third quarters of 1996. The acquisitions of Royal Medical Health Services health services Managed care The benefits covered under a health contract and Sun MRI Services contributed approximately $2 million of revenue growth in the current quarter. Zehner stated, "We were able to integrate both Royal Medical and Sun MRI Services into our operations quite successfully, demonstrating the many operational and geographic synergies and economies of scale that we can realize by making acquisitions. "These transactions enhance our competitive position by increasing our market share and generating additional profits." Zehner further noted that acquisitions continue to be an important component of Alliance's growth strategy and anticipates acquiring other MRI providers and related contracts during the year. Financial Position Zehner said, "In addition to our strong operating results, the 1997 first quarter was significant because it marked the completion of our refinancing efforts which have substantially strengthened the Company's balance sheet and financial and operating flexibility." Zehner noted that General Electric Company purchased a 21% equity interest in the Company through a new issue of preferred stock at the end of March. Additionally, Zehner pointed out that the Company's ratio of 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. to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. is now about 50% compared to 67% when the refinancing efforts began. "Based on our stronger balance sheet, we have filed an application for re-listing on NASDAQ's National Market System, and we anticipate approval in the near future," said Zehner. At March 31, 1997, the Company reported stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. in excess of $39 million, long-term debt of $57 million and a cash balance of over $13 million. Certain statements contained in this release are forward looking statements pursuant to the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All such forward looking statements involve a number of risks and uncertainties. Although Alliance Imaging has used its best efforts to base these statements on assumptions believed by management to be reasonable and achievable, it is possible that the assumptions made by management will not materialize. Investors are cautioned that the risks and uncertainties associated with the forward looking statements include, among others, risks related to the acceptance of new applications marketed by the Company, the level of scans per customer and average scan prices (which have in the past and may again be impacted by changes in third party and governmental reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. policies, competitive factors and other developments) and the ability to identify and complete advantageous acquisitions. Investors are directed to the "Risk Factors" section of the Company's 1991 public offering prospectus and the Company's Annual Report on 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, 1996, as well as more recent public filings by the Company. Alliance Imaging, Inc. is a leading provider of outsourced radiology services and high technology diagnostic imaging systems, as well as related management and information services See Information Systems. , to hospitals and other health care providers nationwide. For more information about Alliance Imaging, Inc. via facsimile call 1-800/PRO-INFO and dial client code "SCAN." -0-
ALLIANCE IMAGING, INC.
SELECTED FINANCIAL DATA
THREE MONTHS ENDED MARCH 31, 1997
(Unaudited)
Three Months Ended
March 31, March 31,
1997 1996
Revenues $ 19,106,000 $ 14,685,000
Costs and expenses:
Operating expenses, excluding
depreciation 8,681,000 7,181,000
Depreciation expense 3,485,000 2,866,000
Selling, general and
administrative expenses 1,897,000 1,507,000
Amortization expense, primarily
goodwill 571,000 344,000
Interest expense, net 1,933,000 1,185,000
Total costs and expenses 16,567,000 13,083,000
Income before income taxes and
extraordinary gain 2,539,000 1,602,000
Provision for income taxes 835,000 239,000
Income before extraordinary gain 1,704,000 1,363,000
Extraordinary gain, net of taxes 1,332,000 -
Net income 3,036,000 1,363,000
Less: Preferred stock dividends - (233,000)
Add: Excess of carrying amount of
preferred stock repurchased over
consideration paid 1,906,000 -
Income applicable to common stock $ 4,942,000 $ 1,130,000
Weighted average common and common
equivalent shares outstanding 11,985,000 11,309,000
Earnings per share:
Income before items below $ 0.14 $ 0.10
Excess of carrying amount of
preferred stock repurchased over
consideration paid 0.16 -
Income before extraordinary gain 0.30 0.10
Extraordinary gain, net of taxes 0.11 -
Income applicable to common stock $ 0.41 $ 0.10
CONTACT: Alliance Imaging, Inc. Terrence M. White, 714/921-5656 www.allianceimaging.com or Financial Relations Board Karen Taylor Karen Taylor is an English comedienne from Barrow-in-Furness, Cumbria. She is a former finalist in the prestigious Daily Telegraph Open Mic Award[1] and has fronted her own sketch show on BBC Three, entitled Touch Me, I'm Karen Taylor. , 310/442-0599 (General info) Moira Conlan, 310/442-0599 (Analyst) Steve Seiler, 310/442-0599 (Media) |
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