DALLAS, March 15 /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 ("FYE")
December 31, 2004.
Select Financial Information For the For the
(in thousands of dollars) Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
Service fee revenue,
as reported $55,425 $62,498 $251,291 $242,038
Service fee revenue
excluding terminated
operations $54,140 $57,466 $239,393 $220,925
EBITDA from continuing
operations(1) $262 $8,410 $25,542 $41,454
Adjusted EBITDA(1) $11,008 $10,705 $46,060 $45,529
Adjusted EBITDA excluding
terminated operations(1) $10,203 $9,036 $41,976 $36,704
Income (loss) from
continuing operations,
as reported $(6,822) $(1,278) $(10,334) $(1,052)
Adjusted income (loss)
from continuing
operations(1) $283 $99 $2,730 $1,393
Adjusted income (loss)
from continuing
operations excluding
terminated operations(1) $(256) $(607) $690 $(2,898)
(1) As defined and reconciled below
GAAP Results
For the fourth quarter ended December 31, 2004, service fee revenue was
$55.4 million compared to $62.5 million for the fourth quarter 2003.
Radiologix incurred a net loss of $7.8 million, or $0.36 per diluted share,
compared to a net loss of $3.0 million or $0.14 per diluted share for the
fourth quarter 2003.
For the fiscal year ended December 31, 2004, service fee revenue was
$251.3 million compared to $242.0 million for fiscal year 2003. Radiologix
incurred a net loss of $18.0 million, or $0.83 per diluted share, compared to
a net loss of $8.0 million or $0.37 per diluted share for fiscal year 2003.
Fourth quarter and FYE 2004 results reflect a $9.1 million increase to
contractual adjustments, resulting in a corresponding decrease in service fee
revenue and accounts receivable (see "Charges and Gain on Sale of Operations"
below).
Excluding the $9.1 million reduction, service fee revenue for the fourth
quarter 2004 would have been $64.5 million, a 3.2% increase from the fourth
quarter 2003; and FYE 2004 service fee revenue would have been $260.4 million,
a 7.6% increase from FYE 2003.
"2004 was a watershed year for our company. We focused our efforts on
stabilizing our operations, building our leadership team, and strengthening
our internal controls. As such, we made many difficult operational, financial
and personnel decisions that resulted in significant but primarily non-cash
financial charges. These decisions challenged our team, tested our resolve,
and blurred our true underlying performance," said Sami S. Abbasi, president
and chief executive officer of Radiologix. "However, by making these
decisions and acting on them, we left 2004 stronger, healthier financially,
and better positioned for the future. I am confident in our operations and in
our potential to create long-term sustainable shareholder value."
Fourth Quarter 2004 Results
Radiologix posted the following results for the fourth quarter 2004.
-- Adjusted income from continuing operations (defined and reconciled
below), was $283,000, or $0.01 per diluted share, compared to adjusted
income from continuing operations of $99,000 or less than $0.01 per
diluted share, for the fourth quarter 2003.
-- Adjusted EBITDA (defined and reconciled below), was $11.0 million,
compared to $10.7 million for the fourth quarter 2003.
-- Adjusted loss from continuing operations, excluding terminated
operations (defined and reconciled below), was $256,000, compared to
adjusted loss from continuing operations of $607,000 for the fourth
quarter 2003.
-- Adjusted EBITDA, excluding terminated operations (defined and
reconciled below), was $10.2 million, compared to $9.0 million for the
fourth quarter 2003.
FYE 2004 Results
Radiologix posted the following results for FYE 2004.
-- Adjusted income from continuing operations was $2.7 million, or $0.13
per diluted share, compared to $1.4 million, or $0.06 per diluted
share, for FYE 2003.
-- Adjusted EBITDA grew 1.3% to $46.1 million, compared to $45.5 million,
for FYE 2003.
-- Adjusted income from continuing operations, excluding terminated
operations, was $690,000, compared to adjusted loss from continuing
operations, excluding terminated operations, of $2.9 million for FYE
2003.
-- Adjusted EBITDA, excluding terminated operations, grew 14.4% to
$42.0 million, compared to $36.7 million, for FYE 2003.
Balance Sheet
Cash and cash equivalents were $34.1 million at December 31, 2004,
compared to $36.8 million at December 31, 2003, primarily reflecting continued
strong cash collections in 2004 and $14.1 million in proceeds from the sales
of operations and imaging centers offset by the $15.5 million payment for the
acquisition of an Equipment Financing Right (described below).
Net debt (total debt less cash and cash equivalents and restricted cash)
was $130.9 million at December 31, 2004, compared to net debt of $137.3
million at December 31, 2003. Total debt at December 31, 2004 was $170.5
million, compared to total debt of $174.1 million at December 31, 2003.
Days sales outstanding (DSOs) was 48 days at December 31, 2004, compared
to 63 days at December 31, 2003. The $9.1 million increase to contractual
adjustments (and corresponding decrease in service fee revenue) accounts for a
decrease of 10 DSOs at December 31, 2004.
Purchase of Equipment Financing Right
Effective October 31, 2004, Radiologix purchased for $15.5 million in cash
diagnostic imaging equipment and an equipment financing right that was granted
prior to the formation of Radiologix and assumed certain equipment leases.
Under this financing right, the seller had a perpetual right to finance
certain types of equipment on behalf of Radiologix and to charge Radiologix
usage-based rent on these pieces of equipment. Service fee revenue is not
affected as a result of this purchase. Instead, this acquisition eliminates
expenses that previously varied based on volume, resulting in incremental
reductions in equipment lease expense as volume increased.
If this transaction had been effective on January 1, 2004, instead of
October 31, 2004, Radiologix estimates that cost of services and depreciation
and amortization would have increased by $500,000 and $1.4 million,
respectively, and equipment lease expense would have decreased by $4.5
million, having the net affect of reducing costs by $2.6 million for the 10
months ended October 31, 2004.
Discontinued Operations
During the fourth quarter 2004, Radiologix sold or closed several imaging
centers, bringing to 76 the number of imaging centers that Radiologix owns or
operates at December 31, 2004. Fourth quarter 2004 dispositions included
Radiologix's interest in five Questar imaging centers that resulted in a
$591,000 loss.
For FYE 2004, Radiologix recorded a $13.1 million pre-tax loss in
discontinued operations, which included impairment charges of $10.2 million
primarily related to the write-down of goodwill associated with Questar
operations, and a net pre-tax loss on dispositions of assets of $1.5 million.
Charges and Gain on Sale of Operations
In connection with our fiscal year-end 2004 close process, Radiologix
implemented a new retrospective collection analysis of accounts receivable
that provided an enhanced methodology for estimating the amount of contractual
adjustments and provision for doubtful accounts necessary to reduce gross
revenues and gross receivables to net amounts.
As a result of using this new analytical tool, Radiologix recorded a
$9.1 million increase to contractual adjustments, resulting in a corresponding
decrease in service fee revenue and accounts receivable.
In the fourth quarter 2004, Radiologix incurred charges aggregating
$1.3 million related to i) an impairment of goodwill for a certain Questar
center, and ii) costs associated with writing off software that was replaced.
In addition to the $9.1 million reduction in service fee revenue in the
fourth quarter 2004 discussed above, Radiologix recorded the following pre-tax
charges to continuing operations during 2004:
-- $14.6 million for impairment primarily related to i) the write-off of
goodwill on imaging centers operated by Radiologix's Questar subsidiary
and ii) the write-off of the unamortized portion of intangible and
long-lived assets related to the previously announced termination of a
medical services agreement with a radiology practice in its Mid-
Atlantic market, that was effective January 31, 2005;
-- $515,000 to i) write off software costs associated with canceling a
software contract and ii) record lease termination costs;
-- $405,000 for severance and other related costs related to the
resignation in September 2004 of Radiologix's former president and CEO
(compared to $1.6 million for FY 2003);
-- $378,000 to reserve for an estimated tax refund receivable;
-- $295,000 for costs associated with a litigation settlement; and
-- $286,000 to reduce equity in earnings of investments.
In 2004, Radiologix recorded a $4.7 million gain on the sale of its San
Antonio operations.
Results of Sarbanes-Oxley 404 Review
During the fourth quarter 2004, management recognized the need to improve
its methodology to match cash collections to billed charges. This methodology
is used to estimate contractual adjustments and doubtful accounts, which
reduce gross revenue and gross accounts receivable to their net realizable
amounts.
We were unable to complete remediation of this weakness before the end of
the fourth quarter. Instead, during our 2004 financial close process, we
conducted additional procedures to enable us to assure the accuracy of the
financial statements for the fourth quarter and fiscal year ended December 31,
2004. As a result, we recorded a $9.1 million increase to contractual
adjustments.
After year-end, we finalized and placed into operation a retrospective
collection analysis that enhances our methodology for estimating the amount of
contractual adjustments and provisions for doubtful accounts. We believe that
this new control has remedied the material weakness in our internal controls
over financial reporting that existed as of December 31, 2004.
Regulation G: GAAP and Non-GAAP Financial Information
This release contains certain financial information not derived in
accordance with GAAP. Radiologix uses both GAAP and non-GAAP metrics to
measure its financial results. We believe that, in addition to GAAP metrics,
these non-GAAP metrics assist Radiologix in measuring its cash-based
performance.
Radiologix believes this information is useful to investors and other
interested parties because it removes unusual and nonrecurring charges that
occur in the affected period and provides a basis for measuring the Company's
financial condition against other quarters.
Since Radiologix has historically reported non-GAAP results to the
investment community, management also believes the inclusion of non-GAAP
measures provides consistency in its financial reporting.
Such information should not be considered as a substitute for any measures
calculated in accordance with GAAP, and may not be comparable to other
similarly titled measures of other companies. Non-GAAP financial measures
should not be considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Reconciliation of this
information to the most comparable GAAP measures is included in this release
in the tables below.
Adjusted loss from continuing operations is defined as income (loss) from
continuing operations calculated in accordance with GAAP, excluding charges,
adjustments and gain on sale of operations.
Adjusted loss from continuing operations, excluding terminated operations,
is defined as income (loss) from continuing operations, excluding charges,
adjustments, gain on sale of operations, and terminated San Antonio and Mid-
Atlantic operations.
EBITDA is defined as earnings before interest, taxes, depreciation and
amortization, each from continuing operations.
Adjusted EBITDA is defined as EBITDA, which has been reconciled to its nearest
comparable GAAP financial measure, excluding charges, adjustments and gain on
sale of operations.
Adjusted EBITDA excluding terminated operations, is defined as EBITDA,
which has been reconciled to its nearest comparable GAAP financial measure,
excluding charges, adjustments, gain on sale of operations, and terminated San
Antonio and Mid-Atlantic operations.
EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding terminated
operations are non-GAAP financial measures used as analytical indicators by
Radiologix management and the healthcare industry to assess business
performance. They also serve as measures of leverage capacity and ability to
service debt.
EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding terminated
operations should not be considered measures of financial performance under
GAAP, and the items excluded from EBITDA, Adjusted EBITDA and Adjusted EBITDA
excluding terminated operations 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, Adjusted EBITDA and Adjusted EBITDA excluding terminated
operations are not measurements determined in accordance with GAAP and are
therefore susceptible to varying methods of calculation, these metrics, as
presented, may not be comparable to other similarly titled measures of other
companies.
Conference Call
In connection with this press release, you are invited to listen to our
conference call with Sami S. Abbasi, president and chief executive officer,
and Michael N. Murdock, senior vice president and chief financial officer,
that will be on Tuesday, March 15, 2005, at 8:00 a.m., Central Time / 9:00
a.m. Eastern Time.
You may access the call by dialing (800) 289-0569 and entering code
8474100. A replay of the call is available by dialing (888) 203-1112 and
entering code 8474100.
In addition, the conference call will be broadcast live over the Internet.
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 End 2004 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
owned or operated 76 diagnostic imaging centers located in 10 states as of
December 31, 2004.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking
statements include words such as "may," "will," "would," "could," "likely,"
"estimate," "intend," "plan," "continue," "believe," "expect" or "anticipate"
and other similar words, and include all discussions about our acquisition and
development plans. We do not guarantee that the events described in this
press release will occur as described, or that any positive trends noted in
this press release will continue.
These forward-looking statements generally relate to our plans, objectives
and expectations for future operations and are based upon management's
reasonable estimates of future results or trends. Although we believe that
our plans and objectives reflected in, or suggested by, such forward-looking
statements are reasonable, we may not achieve such plans or objectives. You
are cautioned not to unduly rely on such forward-looking statements when
evaluating the information presented in this press release. You should read
this press release completely and with the understanding that actual future
results may be materially different from what we expect. We will not update
forward-looking statements even though our situation may change in the future.
Specific factors that might cause actual results to differ from our
expectations include, but are not limited to:
-- economic, demographic, business and other conditions in our markets;
-- the highly competitive nature of the healthcare business;
-- changes in patient referral patterns;
-- changes in the rates or methods of third-party reimbursement for
diagnostic imaging services;
-- changes in our contracts with radiology practice groups;
-- changes in the number of radiologists operating in our contracted
radiology practice groups;
-- the ability to recruit and retain technologists;
-- the availability of additional capital to fund capital expenditure
requirements;
-- lawsuits against Radiologix and our contracted radiology practice
groups;
-- changes in operating margins, particularly changes due to our managed
care contracts and capitated fee arrangements;
-- failure by Radiologix to comply with state and federal anti-kickback
and anti-self referral laws or any other applicable healthcare
regulations;
-- changes in business strategy and development plans;
-- changes in federal, state or local regulations affecting the healthcare
industry;
-- our indebtedness, debt service requirements and liquidity constraints;
-- risks related to our Senior Notes and healthcare securities generally;
-- interruption of operations due to severe weather or other extraordinary
events; and
-- charges for unusual or infrequent (non-recurring) matters.
A more comprehensive list of such factors is set forth in the Company's
Annual Report on Form 10-K for the year ended December 31, 2004, and our other
filings with the Securities and Exchange Commission.
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 15,
2005. Radiologix undertakes no obligation to update any forward-looking
statement or statements to reflect new events or circumstances or future
developments.
Radiologix, Inc.
Consolidated Balance Sheets
(In thousands)
December 31,
ASSETS 2004 2003
CURRENT ASSETS:
Cash and cash equivalents $34,084 $36,766
Restricted cash 5,539 ---
Accounts receivable, net of allowances 44,197 58,746
Due from affiliates 2,029 4,104
Federal and state income tax receivable 3,905 378
Assets held for sale 305 251
Other current assets 6,996 7,571
Total current assets 97,055 107,816
PROPERTY AND EQUIPMENT, net 58,627 62,655
INVESTMENTS IN JOINT VENTURES 8,137 10,665
GOODWILL 2,241 20,110
INTANGIBLE ASSETS, net 71,200 67,917
DEFERRED FINANCING COSTS, net 6,591 8,151
DEFERRED INCOME TAXES 8,892 ---
OTHER ASSETS 1,328 2,200
Total assets $254,071 $279,514
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and other accrued expenses $11,342 $12,364
Accrued physician retention 8,384 8,821
Accrued salaries and benefits 7,339 7,788
Deferred income taxes 3,202 1,797
Accrued interest 708 815
Current maturities of capital lease obligations 48 1,438
Current maturities of long-term debt 109 261
Other current liabilities 536 482
Total current liabilities 31,668 33,766
DEFERRED INCOME TAXES --- 4,260
LONG-TERM DEBT, net of current portion 158,270 160,000
CONVERTIBLE DEBT 11,980 11,980
CAPITAL LEASE OBLIGATIONS, net of current portion 92 376
DEFERRED REVENUE 6,903 7,312
OTHER LIABILITIES 1,000 319
Total liabilities 209,913 218,013
COMMITMENTS AND CONTINGENCIES
MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES 1,242 817
STOCKHOLDERS' EQUITY:
Common stock 2 2
Treasury stock (180) (180)
Additional paid-in capital 14,210 13,942
Retained earnings 28,884 46,920
Total stockholders' equity 42,916 60,684
Total liabilities and stockholders' equity $254,071 $279,514
Radiologix, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
For the For the
Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
SERVICE FEE REVENUE $55,425 $62,498 $251,291 $242,038
COSTS OF OPERATIONS:
Cost of services 39,268 40,027 158,613 149,034
Equipment lease 3,655 4,800 17,660 17,230
Provision for
doubtful accounts 6,151 5,011 22,337 20,228
Depreciation and
amortization 6,052 6,323 24,750 25,537
Gross profit $299 $6,337 $27,931 $30,009
SEVERANCE AND OTHER
RELATED COSTS --- 288 405 1,568
CORPORATE GENERAL
AND ADMINISTRATIVE 5,134 4,344 18,919 15,335
IMPAIRMENT OF GOODWILL,
INTANGIBLE AND LONG-LIVED
ASSETS 1,332 523 14,558 523
INTEREST EXPENSE, NET 4,174 4,218 16,974 17,670
GAIN ON SALE OF OPERATIONS --- --- (4,669) ---
LOSS BEFORE EQUITY IN
EARNINGS OF UNCONSOLIDATED
AFFILIATES, MINORITY
INTERESTS IN CONSOLIDATED
SUBSIDIARIES, INCOME TAXES
AND DISCONTINUED
OPERATIONS $(10,341) $(3,036) $(18,256) $(5,087)
Equity In Earnings of
Unconsolidated Affiliates 529 923 2,865 4,082
Minority Interests In
Income of Consolidated
Subsidiaries (152) (18) (791) (748)
INCOME (LOSS) BEFORE
INCOME TAXES AND
DISCONTINUED OPERATIONS $(9,964) $(2,131) $(16,182) $(1,753)
Income Tax Expense
(Benefit) (3,142) (853) (5,848) (701)
INCOME (LOSS) FROM
CONTINUING OPERATIONS $(6,822) $(1,278) $(10,334) $(1,052)
Discontinued Operations:
Loss from discontinued
operations before
income taxes (1,977) (2,841) (13,128) (11,519)
Income tax benefit (965) (1,136) (5,426) (4,608)
Loss from discontinued
operations $(1,012) $(1,705) $(7,702) $(6,911)
NET INCOME (LOSS) $(7,834) $(2,983) $(18,036) $(7,963)
INCOME (LOSS) PER
COMMON SHARE
Income (loss) from
continuing operations
- basic $(0.31) $(0.06) $(0.48) $(0.05)
Income (loss) from
discontinued
operations - basic $(0.05) $(0.08) $(0.35) $(0.32)
Net income (loss)
- basic $(0.36) $(0.14) $(0.83) $(0.37)
Income (loss) from
continuing operations
- diluted $(0.31) $(0.06) $(0.48) $(0.05)
Income (loss) from
discontinued
operations
- diluted $(0.05) $(0.08) $(0.35) $(0.32)
Net income (loss)
- diluted $(0.36) $(0.14) $(0.83) $(0.37)
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic 21,816,204 21,764,115 21,789,517 21,724,165
Diluted 21,816,204 21,764,115 21,789,517 21,724,165
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information
(In thousands, except per share data)
Reconciliation of Loss from For the For the
Continuing Operations to Three Months Ended Year Ended
Adjusted Income from December 31, December 31,
Continuing Operations 2004 2003 2004 2003
GAAP: Income (loss)
from continuing operations $(6,822) (1,278) $(10,334) $(1,052)
Add: Severance and
other related costs --- 173 254 941
Add: Impairment of goodwill
and long-lived assets 834 314 9,114 314
Add: Litigation settlement --- 672 185 972
Add: Charges related to
contract cancellations --- --- 322 ---
Add: Professional fees --- 218 --- 218
Add: Gain on sale of operations --- --- (3,082) ---
Add: Increase in
contractual adjustments
5,714 --- 5,714 ---
Add: Decrease in equity in
earnings of unconsolidated
Affiliates 179 --- 179 ---
Add: Tax adjustments 378 --- 378 ---
Adjusted income from
continuing operations $283 $99 $2,730 $1,393
Fully diluted
shares outstanding 21,816,204 21,764,115 21,789,517 21,724,165
Adjusted income from
continuing operations
per share - diluted $0.01 $0.00 $0.13 $0.06
Note: all addbacks are net of taxes
Reconciliation of Loss from For the For the
Continuing Operations to Three Months Ended Year Ended
EBITDA and adjusted EBITDA December 31, December 31,
2004 2003 2004 2003
GAAP: Income (loss)
from continuing operations $(6,822) $(1,278) $(10,334) (1,052)
Add: Income tax
expense (benefit) (3,142) (853) (5,848) (701)
Add: Interest expense, net 4,174 4,218 16,974 17,670
Add: Depreciation
and amortization 6,052 6,323 24,750 25,537
EBITDA $262 $8,410 $25,542 $41,454
Add: Severance and
other related costs --- 288 405 1,568
Add: Impairment of
goodwill and long-lived
assets 1,332 523 14,558 ---
Add: Litigation settlement --- 1,121 295 1,621
Add: Charges related to
contract cancellations --- --- 515 523
Add: Professional fees --- 363 --- 363
Add: Gain on sale
of operations --- --- (4,669) ---
Add: Increase in
contractual adjustments 9,128 --- 9,128 ---
Add: Decrease in equity
in earnings of unconsolidated
Affiliates 286 --- 286 ---
Adjusted EBITDA $11,008 $10,705 $46,060 $45,529
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information,
Excluding Terminated Operations
(In thousands, except per share data)
Reconciliation of Loss from
Continuing Operations to
Adjusted Income from For the For the
Continuing Operations, Three Months Ended Year Ended
excluding Terminated December 31, December 31,
Operations 2004 2003 2004 2003
GAAP: Income (loss)
from continuing
operations $(6,925) $(1,984) $(10,308) $(5,343)
Add: Severance and
other related costs --- 173 254 941
Add: Impairment of goodwill
and long-lived assets 834 314 4,599 314
Add: Litigation settlement --- 672 185 972
Add: Charges related to
contract cancellations --- --- 125 ---
Add: Professional fees --- 218 --- 218
Add: Gain on sale
of operations --- --- --- ---
Add: Increase in
contractual adjustments 5,278 --- 5,278 ---
Add: Decrease in equity in
earnings of unconsolidated
Affiliates 179 --- 179 ---
Add: Tax adjustments 378 --- 378 ---
Adjusted income (loss)
from continuing
operations $(256) $(607) $690 $(2,898)
Note: all addbacks are net of taxes
Reconciliation of Loss from
Continuing Operations to For the For the
EBITDA, Adjusted EBITDA Three Months Ended Year Ended
Excluding Terminated December 31, December 31,
Operations 2004 2003 2004 2003
GAAP: Income (loss)
from continuing
operations $(6,925) $(1,984) $(10,308) $(5,343)
Add: Income tax
expense (benefit) (3,131) (1,256) (5,532) (3,122)
Add: Interest
expense, net 4,169 4,119 16,799 17,242
Add: Depreciation and
amortization 6,050 5,862 24,062 23,852
EBITDA $163 $6,741 $25,021 $32,629
Add: Severance and
other related costs --- 288 405 1,568
Add: Impairment of
goodwill and
long-lived assets 1,332 523 7,347 523
Add: Litigation settlement --- 1,121 295 1,621
Add: Charges related to
contract cancellations --- --- 200 ---
Add: Professional fees --- 363 --- 363
Add: Gain on sale
of operations --- --- --- ---
Add: Increase in
contractual adjustments
8,422 --- 8,422 ---
Add: Decrease in equity in
earnings of unconsolidated
Affiliates 286 --- 286 ---
Adjusted EBITDA $10,203 $9,036 $41,976 $36,704
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands, except per share data)
For the Three Months Ended December 31, 2004
Terminated Radiologix Excluding
Radiologix Operations Terminated Operations
SERVICE FEE REVENUE $55,425 $1,285 $54,140
COSTS OF OPERATIONS:
Cost of services 39,268 484 38,784
Equipment lease 3,655 6 3,649
Provision for
doubtful accounts 6,151 696 5,455
Depreciation and
amortization 6,052 2 6,050
Gross profit $299 $97 $202
SEVERANCE AND OTHER
RELATED COSTS --- --- ---
CORPORATE GENERAL
AND ADMINISTRATIVE 5,134 --- 5,134
IMPAIRMENT OF
GOODWILL, INTANGIBLE
AND LONG-LIVED ASSETS 1,332 --- 1,332
INTEREST EXPENSE, NET 4,174 5 4,169
INCOME (LOSS) BEFORE
EQUITY IN EARNINGS OF
UNCONSOLIDATED AFFILIATES,
MINORITY INTERESTS IN
CONSOLIDATED SUBSIDIARIES,
INCOME TAXES AND
DISCONTINUED OPERATIONS $(10,341) $92 $(10,433)
Equity In Earnings of
Unconsolidated Affiliates 529 --- 529
Minority Interests In Income
of Consolidated Subsidiaries (152) --- (152)
INCOME (LOSS) BEFORE INCOME
TAXES AND DISCONTINUED
OPERATIONS $(9,964) $92 $(10,056)
Income Tax
Expense (Benefit) (3,142) (11) (3,131)
INCOME (LOSS) FROM
CONTINUING OPERATIONS $(6,822) $103 $(6,925)
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands, except per share data)
For the Three Months Ended December 31, 2003
Terminated Radiologix Excluding
Radiologix Operations Terminated Operations
SERVICE FEE REVENUE $62,498 $5,032 $57,466
COSTS OF OPERATIONS:
Cost of services 40,027 2,606 37,421
Equipment lease 4,800 42 4,758
Provision for
doubtful accounts 5,011 718 4,293
Depreciation and
amortization 6,323 461 5,862
Gross profit $6,337 $1,205 $5,132
SEVERANCE AND OTHER
RELATED COSTS 288 --- 288
CORPORATE GENERAL
AND ADMINISTRATIVE 4,344 --- 4,344
IMPAIRMENT OF
GOODWILL, INTANGIBLE
AND LONG-LIVED ASSETS 523 --- 523
INTEREST EXPENSE, NET 4,218 99 4,119
INCOME (LOSS) BEFORE EQUITY
IN EARNINGS OF
UNCONSOLIDATED AFFILIATES,
MINORITY INTERESTS IN
CONSOLIDATED SUBSIDIARIES,
INCOME TAXES AND
DISCONTINUED OPERATIONS $(3,036) $1,106 $(4,142)
Equity In Earnings of
Unconsolidated Affiliates 923 78 845
Minority Interests In Income
of Consolidated Subsidiaries (18) (75) 57
INCOME (LOSS) BEFORE INCOME
TAXES AND DISCONTINUED
OPERATIONS $(2,131) $1,109 $(3,240)
Income Tax Expense (Benefit) (853) 403 (1,256)
INCOME (LOSS) FROM
CONTINUING OPERATIONS $(1,278) $706 $(1,984)
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands, except per share data)
For the Year Ended December 31, 2004
Terminated Radiologix Excluding
Radiologix Operations Terminated Operations
SERVICE FEE REVENUE $251,291 $11,898 $239,393
COSTS OF OPERATIONS:
Cost of services 158,613 6,083 152,530
Equipment lease 17,660 114 17,546
Provision for
doubtful accounts 22,337 2,624 19,713
Depreciation and
amortization 24,750 688 24,062
Gross profit $27,931 $2,389 $25,542
SEVERANCE AND OTHER
RELATED COSTS 405 --- 405
CORPORATE GENERAL
AND ADMINISTRATIVE 18,919 --- 18,919
IMPAIRMENT OF
GOODWILL, INTANGIBLE
AND LONG-LIVED ASSETS 14,558 7,211 7,347
GAIN ON SALE OF OPERATIONS (4,669) (4,669) ---
INTEREST EXPENSE, NET 16,974 175 16,799
LOSS BEFORE EQUITY IN
EARNINGS OF UNCONSOLIDATED
AFFILIATES, MINORITY
INTERESTS IN CONSOLIDATED
SUBSIDIARIES, INCOME TAXES
AND DISCONTINUED
OPERATIONS $(18,256) $(328) $(17,928)
Equity In Earnings of
Unconsolidated Affiliates 2,865 114 2,751
Minority Interests In Income
of Consolidated Subsidiaries (791) (128) (663)
INCOME (LOSS) BEFORE INCOME
TAXES AND DISCONTINUED
OPERATIONS $(16,182) $(342) $(15,840)
Income Tax
Expense (Benefit) (5,848) (316) (5,532)
INCOME (LOSS) FROM
CONTINUING OPERATIONS $(10,334) $(26) $(10,308)
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands, except per share data)
For the Year Ended December 31, 2003
Terminated Radiologix Excluding
Radiologix Operations Terminated Operations
SERVICE FEE REVENUE $242,038 $21,113 $220,925
COSTS OF OPERATIONS:
Cost of services 149,034 9,231 139,803
Equipment lease 17,230 176 17,054
Provision for
doubtful accounts 20,228 2,937 17,291
Depreciation and
amortization 25,537 1,685 23,852
Gross profit $30,009 $7,084 $22,925
SEVERANCE AND OTHER
RELATED COSTS 1,568 --- 1,568
CORPORATE GENERAL
AND ADMINISTRATIVE 15,335 --- 15,335
IMPAIRMENT OF
GOODWILL, INTANGIBLE
AND LONG-LIVED ASSETS 523 --- 523
GAIN ON SALE OF OPERATIONS --- --- ---
INTEREST EXPENSE, NET 17,670 428 17,242
LOSS BEFORE EQUITY IN
EARNINGS OF UNCONSOLIDATED
AFFILIATES, MINORITY
INTERESTS IN CONSOLIDATED
SUBSIDIARIES, INCOME TAXES
AND DISCONTINUED
OPERATIONS $(5,087) $6,656 $(11,743)
Equity In Earnings of
Unconsolidated Affiliates 4,082 371 3,711
Minority Interests In
Income of Consolidated
Subsidiaries (748) (315) (433)
INCOME (LOSS) BEFORE INCOME
TAXES AND DISCONTINUED
OPERATIONS $(1,753) 6,712 $(8,465)
Income Tax Expense (Benefit) (701) 2,421 (3,122)
INCOME (LOSS) FROM
CONTINUING OPERATIONS $(1,052) $4,291 $(5,343)
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, Investor Relations of
Radiologix, +1-214-303-2702, or paul.streiber@radiologix.com
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