Alliance Imaging sells its only non-hospital-based imaging center; concentrates focus on hospital-based services.ORANGE, Calif--(BUSINESS WIRE)--Oct. 25, 1995--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), the nation's largest provider of hospital-based fixed-site and mobile magnetic resonance imaging magnetic resonance imaging (MRI), noninvasive diagnostic technique that uses nuclear magnetic resonance to produce cross-sectional images of organs and other internal body structures. (MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. ) and computed tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. (CT) services, Wednesday announced that it has concentrated its focus on hospital-based services by selling its only non-hospital-based imaging center. This important strategic step was completed with the company's sale of its Woodward Park Woodward Park (34 acres) is a public park, botanical garden, and arboretum located between 21st Street and 24th Street, Tulsa, Oklahoma, USA. It is open to the public daily. Imaging Center in Fresno, Calif. to a private investor. Terms were not disclosed; however, Alliance reported that the transaction would not result in any significant gain or loss. Richard N. Zehner, 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. said, "This sale of our only non-hospital-based imaging center is in keeping with our strategy to focus on hospital-based services. With the changing healthcare environment, we believe that hospitals and their associated physicians are becoming the dominant providers of medical imaging services." Zehner added, "Although the Woodward Park Imaging Center was successful and generated annual revenues of approximately $2.5 million, the contribution to our profits was minimal and it consumed large amounts of top management's time. This divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). will enable us to redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. funds into more productive investments and will enable management to concentrate its efforts on growing our core hospital-based diagnostic imaging services." With a current cash balance of approximately $11.5 million and strong cash flow, Alliance is actively seeking acquisitions of companies that will expand the company's market share, increase revenue and profitability and create economies of scale. "A consolidation is currently underway in the healthcare market, and there are a number of small, yet profitable, MRI service providers that do not have the resources or critical mass to effectively compete in this environment. We believe these companies are excellent acquisition candidates, offering Alliance a significant source of growth and increased geographic coverage," Zehner said. Alliance Imaging Inc. provides its nationwide services both on a mobile, shared user basis and full-time basis at single hospital sites. The company currently operates 74 MRI and 10 CT units. CONTACT: South Coast Communications Group Marty Tullio (investors) Owen Daley (media) 714/252-8440 or Alliance Imaging Inc. Terrence M. White, 714/921-5656 |
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