DALLAS, March 11 /PRNewswire-FirstCall/ -- Radiologix, Inc. (Amex: RGX),
a leading national provider of diagnostic imaging services, today announced
financial results for its fourth quarter and fiscal year ended December 31,
2003.
(LOGO: NewsCom: http://www.newscom.com/cgi-bin/prnh/19991026/RLGXLOGO )
Fourth Quarter 2003 Results
For the fourth quarter 2003, Radiologix reported service fee revenue of
$66.0 million versus $64.0 million for the fourth quarter 2002, a 3.1 percent
increase; a net loss of $3.0 million for the fourth quarter 2003 compared to a
net loss of $1.6 million for the fourth quarter 2002; and a loss from
continuing operations of $1.3 million for the fourth quarter 2003, compared to
a loss from continuing operations of $585,000 for the fourth quarter 2002.
For the fourth quarter 2003, net loss per diluted share was $0.14 compared
to net loss per diluted share of $0.08 for the fourth quarter 2002. For the
fourth quarter 2003, loss per diluted share from continuing operations was
$0.06 compared to loss per diluted share from continuing operations of
$0.03 for the fourth quarter 2002.
EBITDA (as defined and described below under "EBITDA" and reconciled to
the most comparable GAAP financial measure on page 10 below) from continuing
operations was $8.9 million for the fourth quarter 2003 compared to
$10.6 million for the fourth quarter 2002. EBITDA from continuing operations
as a percent of service fee revenue was 13.4 percent for the fourth quarter
2003 compared to 16.5 percent for the fourth quarter 2002.
Loss from continuing operations excluding charges (as defined and
described below under "Special Charges" and reconciled to the most comparable
GAAP financial measure on page 10 below) was $237,000 for the fourth quarter
2003, compared to income from continuing operations excluding charges of
$768,000 for the fourth quarter 2002.
Loss per diluted share from continuing operations excluding charges was
$0.01 for the fourth quarter 2003 compared to diluted earnings per share
("EPS") from continuing operations excluding charges of $0.04 for the fourth
quarter 2002.
EBITDA from continuing operations excluding charges (as defined and
described below under "EBITDA" and "Special Charges" and reconciled to the
most comparable GAAP financial measure on page 10 below) was $10.6 million for
the fourth quarter 2003, compared to $12.8 million for the fourth quarter
2002, a decrease of 17.1 percent. EBITDA from continuing operations excluding
charges, as a percent of service fee revenue, was 16.1 percent for the fourth
quarter 2003 compared to 20.0 percent for the fourth quarter 2002.
Cash flow from operating activities was $14.2 million for the fourth
quarter 2003 compared to $14.8 million for the fourth quarter 2002.
"We are very pleased that our emphasis on additional and effective
marketing resources and physicians' re-engagement in promoting their practices
has resulted in the first meaningful revenue growth - for the fourth quarter
2003 compared to the fourth quarter 2002 and the third quarter 2003 - since
the first and second quarters of 2002," said Stephen D. Linehan, president and
C.E.O. of Radiologix.
Mr. Linehan added, "During 2004, we will continue to concentrate on
revenue growth, and we have already been focusing on operating efficiencies
and lowering per-procedure costs across the country by disseminating the best
practices of the most efficient and profitable centers. For 2004, our
attention will be centered on continuing to drive revenue growth while
increasing profitability."
Fiscal Year End ("FYE") 2003 Results
Fiscal year 2003 service fee revenue was $257.0 million compared to $272.2
million for fiscal year 2002, a 5.6 percent decrease.
Radiologix incurred a net loss of $8.0 million for fiscal year 2003
compared to net income of $10.8 million for fiscal year 2002. For fiscal year
2003, loss from continuing operations was $1.1 million, compared to income
from continuing operations of $11.5 million for fiscal year 2002.
Net loss per diluted share for fiscal year 2003 was $0.36 compared to
diluted EPS of $0.48 for fiscal year 2002. Loss per diluted share from
continuing operations was $0.05 for fiscal year 2003, compared to diluted EPS
of $0.51 for fiscal year 2002.
EBITDA (as defined and described below under "EBITDA" and reconciled to
the most comparable GAAP financial measure on page 10 below) from continuing
operations was $43.4 million for fiscal year 2003, compared to $63.5 million
for fiscal year 2002, a decrease of 31.7 percent. EBITDA from continuing
operations as a percent of service fee revenue was 16.9 percent for fiscal
year 2003 compared to 23.3 percent for fiscal year 2002.
Income from continuing operations excluding charges (as defined and
described below under "Special Charges" and reconciled to the most comparable
GAAP financial measure on page 10 below) was $1.1 million for fiscal year 2003
compared to income from continuing operations excluding charges of $12.8
million for fiscal year 2002.
Diluted EPS from continuing operations excluding charges was $0.05 for
fiscal year 2003 compared to diluted EPS of $0.57 for fiscal year 2002.
EBITDA from continuing operations excluding charges was $46.9 million for
fiscal year 2003 compared to $65.7 million for fiscal year 2002, a 28.7
percent decrease. EBITDA from continuing operations excluding charges, as a
percent of service fee revenue, was 18.2 percent for fiscal year 2003 compared
to 24.2 percent for fiscal year 2002.
Cash flow from operating activities was $35.7 million for fiscal year 2003
compared to $45.5 million for fiscal year 2002.
Balance Sheet
Cash and cash equivalents were $36.8 million at December 31, 2003 compared
to $19.2 million at December 31, 2002. Radiologix currently has access to the
full $35.0 million under its amended credit facility, which permits Radiologix
to borrow up to 85 percent of the value of eligible receivables.
Total debt at December 31, 2003 was $174.1 million, compared to total debt
of $178.2 million at December 31, 2002. Net debt (total debt less cash and
cash equivalents) at December 31, 2003 was $137.3 million compared to net debt
of $159.1 million at December 31, 2002.
Days sales outstanding ("DSOs") was 63 days at December 31, 2003 compared
to 73 days at December 31, 2002.
Special Charges
Radiologix incurred special charges related to continuing operations of
$1.7 million for the fourth quarter 2003, and $3.5 million for fiscal year
2003. These charges include:
-- a write off of software costs related to the impairment of a patient
scheduling system of $523,000 for the fourth quarter and fiscal
year 2003,
-- fees related to amending the Company's $35 million credit facility of
$363,000 for the fourth quarter and fiscal year 2003,
-- settlement of a claim of $300,000 for the fourth quarter and fiscal
year 2003,
-- severance and other related costs of $288,000 for the fourth quarter
2003 and $1.6 million for fiscal year 2003,
-- an estimated expense related to our self-reporting of certain lease
agreements to the Office of the Inspector General of $500,000 for
fiscal year 2003, and associated legal and consulting costs related to
this matter of $275,000 for the fourth quarter and fiscal year 2003.
Radiologix incurred charges related to discontinued operations of
$2.5 million for the fourth quarter 2003, and $9.9 million in
total for fiscal year 2003. These charges include:
-- an impairment to goodwill of $1.5 million for the fourth quarter 2003
and $8.9 million for fiscal year 2003, and
-- costs associated with closing diagnostic imaging centers of $1.0
million for the fourth quarter and fiscal year 2003.
Discontinued Operations
At December 31, 2003, five diagnostic imaging centers were held for sale
or closure. One such center was closed in January 2004, leaving four centers
that are expected to be sold or closed over the next several months.
Guidance
Having examined and assessed our sector of the healthcare industry, the
competitive landscape for the services we provide, our operations and
opportunities for growth, we believe that Radiologix can be in a position to
achieve diluted EPS from continuing operations of $0.08 to $0.10 in 2004.
Since this financial measure is for an extended period of time and because
we have made several assumptions in determining this guidance, a change in the
factors that affect our business could impact actual results. This guidance
does not reflect acquisitions or material expansion projects.
Forward-looking statements concerning fiscal year 2004 guidance relate to
future financial results or business expectations and, therefore, may prove to
be inaccurate due to changing or unexpected circumstances. Fiscal year 2004
guidance is made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. Please see the cautionary statements below.
GAAP and Non-GAAP Financial Information
This release contains certain financial information not derived in
accordance with generally accepted accounting principles (GAAP), including
EBITDA. Radiologix believes this information is useful to investors and other
interested parties. Such information should not be considered as a substitute
for any measures derived in accordance with GAAP, and may not be comparable to
other similarly titled measures of other companies. Reconciliation of this
information to the most comparable GAAP measures is included later in this
release.
EBITDA
EBITDA ("Earnings Before Interest, Taxes, Depreciation and Amortization,
and including equity in earnings of investments and minority interests") is a
non-GAAP financial measure used as an analytical indicator by Radiologix
management and the healthcare industry to assess business performance. It
also serves as a measure of leverage capacity and debt service ability.
EBITDA should not be considered as a measure of financial performance
under generally accepted accounting principles, and the items excluded from
EBITDA should not be considered in isolation or as an alternative to net
income, cash flows generated by operating, investing, or financing activities
or other financial statement data presented in the consolidated financial
statements as an indicator of financial performance or liquidity.
As EBITDA is not a measurement determined in accordance with generally
accepted accounting principles and is thus susceptible to varying
calculations, EBITDA as presented may not be comparable to other similarly
titled measures of other companies.
EBITDA from continuing operations, excluding charges is used to show
adjustments to EBITDA for comparative purposes to previous periods. A
reconciliation of EBITDA to the most comparable GAAP financial measure may be
found on pages 10 and 11 below.
Conference Call
In connection with this earnings press release, you are invited to listen
to our conference call with Stephen D. Linehan, president and C.E.O., and Sami
S. Abbasi, executive vice president, C.O.O. and C.F.O., that will be broadcast
live over the Internet on Thursday, March 11, 2004 at 8:00 a.m. Central Time,
9:00 a.m. Eastern Time.
You may listen to the call via the Internet by navigating to Radiologix's
Web site (http://www.radiologix.com) and from the "Investor Relations"
drop-down menu, click on "Conference Calls & Presentations."
If you are unable to participate during the live Webcast, the Fourth
Quarter and Fiscal Year 2003 Results Conference Call will be archived on
Radiologix's Web site, http://www.radiologix.com. To access the replay, from
the "Investor Relations" drop-down menu, click on "Conference Calls &
Presentations."
About Radiologix
Radiologix (http://www.radiologix.com) is a leading national provider of
diagnostic imaging services, owning and operating multi-modality diagnostic
imaging centers that use advanced imaging technologies such as positron
emission tomography ("PET"), magnetic resonance imaging ("MRI"), computed
tomography ("CT") and nuclear medicine, as well as x-ray, general radiography,
mammography, ultrasound and fluoroscopy. The diagnostic images created, and
the radiology reports based on these images, enable more accurate diagnosis
and more efficient management of illness for ordering physicians. Radiologix
owns or operates 107 diagnostic imaging centers located in 15 states as of
December 31, 2003.
Safe Harbor Statement
This press release contains forward-looking statements that relate to
future financial results or business expectations and are made pursuant to the
safe harbor provisions of the Securities Litigation Reform Act of 1995. Such
statements give our current expectations or forecasts of future events; they
do not relate strictly to historical or current facts. Any forward-looking
statement speaks only as of the date on which such statement is made. The
information in this press release is as of March 11, 2004. Radiologix
undertakes no obligation to update any forward-looking statement or statements
to reflect new events or circumstances or future developments.
We have tried, whenever possible, to identify such statements by using
words such as "anticipated," "estimates," "expect," "project," "intend,"
"plan," "believe," "will" and similar expressions in connection with any
discussion of future operations or financial performances. These statements
are subject to risks and uncertainties that exist in the Company's operations
and business environment. Business plans may change as circumstances warrant
and actual results may differ materially from any forward-looking statements,
which reflect the management's opinion only as of the date hereof. Such risks
and uncertainties include, but are not limited to, those associated with the
Company's acquisition and expansion strategy; integration of the Company's
affiliated physician practices and newly acquired imaging centers; the
Company's ability to achieve operating efficiencies and engage in successful
new development efforts; interruption of operations in certain regions due to
severe weather or other extraordinary events; recruitment and retention of
technologists by Radiologix and radiologists by the contracted radiology
groups; regulatory changes; the enforceability of its Service Agreements and
related documents; reimbursement trends; governmental policies; and general
economic and business conditions. Such risks and uncertainties, as well as
additional risk factors which could affect the forward-looking statements made
in this press release, are included in the Company's filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K
for the year ended December 31, 2002 (which will be updated by its Annual
Report on Form 10-K for the year ended December 31, 2003 shortly) and its
periodic reports on Forms 10-Q and 8-K (if any).
We cannot guarantee that any forward-looking statements will be realized,
although we believe we have been prudent in our plans and assumptions.
Achievement of future results is subject to risks, uncertainties and
potentially inaccurate assumptions. Should known or unknown risks or
uncertainties materialize, or should underlying assumptions prove inaccurate,
actual results could vary materially from past results and those anticipated,
estimated or projected. Investors should bear this in mind as they consider
forward-looking statements.
Radiologix, Inc.
Summary Income Statements
(In thousands, except per share data)
Unaudited Audited
3 Months Ended Fiscal Year Ended
Dec. 31, Dec. 31,
2002 2003 2002 2003
Service fee revenue $ 64,003 $ 65,985 $ 272,190 $ 257,014
Salaries and benefits 20,456 22,139 80,785 84,313
Field supplies 4,100 4,617 16,636 17,568
Field rent and lease 7,643 8,671 29,664 32,497
expense
Other field expenses 11,209 12,728 44,714 44,371
Bad debt expense 5,604 5,414 23,373 21,927
Severance and other 978 288 978 1,568
related costs
Impairment charge on
long-lived assets 1,277 -- 1,277 --
Corporate general and 3,097 4,166 14,674 14,742
administrative
Total costs and
expenses $ 54,364 $ 58,023 $ 212,101 $ 216,986
Equity in earnings of
investments 1,149 923 4,568 4,082
Minority interests in
consolidated subsidiaries (230) (18) (1,185) (748)
Depreciation and amortization 6,970 6,710 25,614 27,110
Interest expense, net 4,563 4,300 18,714 18,012
Income (loss) from
continuing operations
before income taxes $ (975) $ (2,143) $ 19,144 $ (1,760)
Income tax expense (benefit) (390) (857) 7,658 (704)
Income (loss) from
continuing operations $ (585) $ (1,286) $ 11,486 $ (1,056)
Discontinued operations
Loss from discontinued
operations, before income
taxes $ (1,752) $ (2,829) $ (1,217) $ (11,512)
Income tax benefit (701) (1,132) (487) (4,605)
Loss from discontinued
operations $ (1,051) $ (1,697) $ (730) $ (6,907)
Net income (loss) $ (1,636) $ (2,983) $ 10,756 $ (7,963)
Income (loss) per common
share
Income (loss) from cont.
ops. - basic $ (0.03) (0.06) 0.55 (0.05)
Income (loss) per share -
basic $ (0.08) $ (0.14) $ 0.51 $ (0.37)
Weighted average shares -
basic 21,581 21,764 20,957 21,724
Income (loss) per share
from cont. ops.-diluted $ (0.03) $ (0.06) $ 0.51 $ (0.05)
Income (loss) per share -
diluted $(0.08) $(0.14) $0.48 $(0.36)
Weighted average shares -
diluted 21,803 22,081 23,967 21,948
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information
(In thousands, except per share data)
3 Months Percent 3 Months Percent
12/31/2002 of 12/31/2003 of
Revenue Revenue
Service fee revenue $64,003 100.0 $ 65,985 100.0
Loss from continuing
operations (585) (0.9) (1,286) (1.9)
Less: Inc. tax benefit
from continuing ops. 390 0.6 857 1.3
Add: Interest expense, net 4,563 7.1 4,300 6.5
Add: Depreciation and
amortization 6,970 10.9 6,710 10.1
EBITDA from continuing
operations $ 10,558 16.5 $ 8,867 13.4
Add: Severance costs 978 1.5 288 0.5
Add: Impairment charge
on long-lived assets 1,277 2.0 -- --
Add: Other charges
(included in Other field
expenses) -- -- 1,461 2.2
EBITDA from continuing
operations, excluding
severance costs
and charges $ 12,813 20.0 $ 10,616 16.1
12 Months Percent 12 Months Percent
12/31/2002 of 12/31/2003 of
Revenue Revenue
Service fee revenue $ 272,190 100.0 $ 257,014 100.0
Income (loss) from
continuing operations $ 11,486 4.2 (1,056) (0.4)
Add: Inc. tax expense
from continuing ops. 7,658 2.8 -- --
Less: Inc. tax benefit
from continuing ops. -- -- 704 0.3
Add: Interest expense, net 18,714 6.9 18,012 7.0
Add: Depreciation and
amortization 25,614 9.4 27,110 10.6
EBITDA from continuing
operations $ 63,472 23.3 $ 43,362 16.9
Add: Severance costs 978 0.4 1,568 0.6
Add: Impairment charge
on long-lived assets 1,277 0.5 -- --
Add: Other charges
(included in Other field
expenses) -- -- 1,961 0.7
EBITDA from continuing
operations, excluding
severance costs and
charges $ 65,727 24.2 $ 46,891 18.2
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information
(In thousands, except per share data)
3 Mos. Ended 3 Mos. Ended FYE FYE
12/31/2002 12/31/2003 12/31/2002 12/31/2003
Net income (loss) $ (1,636) $ (2,983) $ 10,756 $ (7,963)
Less: Inc. tax
benefit from disc. ops. 701 1,132 487 4,605
Add: Loss from
discontinued operations 1,752 2,829 1,217 11,512
Income (loss) from
continuing operations $ (585) $ (1,286) $ 11,486 $ (1,056)
Add: Severance costs,
net of tax 587 173 587 941
Add: Impairment charge
on long-lived assets,
net of tax 766 -- 766 --
Add: Other charges, net
of tax -- 876 -- 1,176
Income (loss) from
continuing operations,
excluding severance
costs and charges $ 768 $ (237) $ 12,839 $ 1,061
Fully diluted shares
outstanding 21,803 22,081 23,967 21,948
Income (loss) per share
from cont. ops.,
excl. charges -
diluted $ 0.04 $ (0.01) $ 0.57 $ 0.05
Radiologix, Inc.
Summary Balance Sheets
(In thousands)
Audited Audited
December 31, 2002 December 31, 2003
CURRENT ASSETS
Cash and cash equivalents $ 19,153 $ 36,766
Accounts receivable, net 69,377 58,746
Due from affiliates 5,100 4,104
Assets held for sale --- 251
Other current assets 7,225 7,571
Total current assets $ 100,855 $ 107,438
Property and equipment, net 62,103 60,233
Investment in joint ventures 10,149 10,665
Goodwill 28,510 20,110
Intangible assets, net 72,151 67,917
Deferred financing cost, net 9,719 8,151
Other assets 12,604 4,622
Total assets $ 296,091 $ 279,136
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 19,145 $ 14,598
Accrued physician retention 8,216 8,821
Accrued salaries and benefits 8,268 7,788
Current portion of long-term
debt 266 261
Current portion of capital
lease obligation 4,052 1,438
Other current liabilities 458 482
Total current liabilities $ 40,405 $ 33,388
Deferred income taxes 4,200 4,260
Long-term debt, net of current
portion 160,412 160,081
Convertible debt 11,980 11,980
Capital lease obligations,
net of current portion 1,519 295
Deferred revenue 7,721 7,312
Other liabilities 147 319
Total liabilities $ 226,384 $ 217,635
Minority interests
in consolidated
subsidiaries 1,340 817
Total stockholders' equity 68,367 60,684
Total liabilities and
stockholders' equity $ 296,091 $ 279,136
SOURCE Radiologix, Inc.
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Related links:
http://www.radiologix.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19991026/RLGXLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Paul R. Streiber of Radiologix, Inc.,
+1-214-303-2702, or paul.streiber@radiologix.com
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