DALLAS, May 3 /PRNewswire-FirstCall/ -- Radiologix, Inc. (Amex: RGX), a
leading national provider of diagnostic imaging services, today announced
financial results for its first quarter ended March 31, 2005.
Select Financial Information
(in thousands of dollars) For the Three Months
Ended March 31,
2005 2004
Service fee revenue, as reported $62,751 $66,042
Service fee revenue excluding terminated
operations (A) $61,821 $60,851
EBITDA (A) $11,884 $12,300
EBITDA from continuing operations excluding
terminated operations(A) $11,552 $10,441
Net income (loss), as reported $518 $(2,707)
Income from continuing operations, as reported $787 $840
Income (loss) from continuing operations
excluding terminated operations (A) $582 $(8)
(A) As defined and reconciled below
GAAP Results
For the first quarter ended March 31, 2005, service fee revenue was
$62.8 million, compared to $66.0 million for the first quarter 2004.
Radiologix earned $518,000, or $0.02 per diluted share, compared to a net loss
of $2.7 million or $0.12 per share for the first quarter 2004.
First Quarter 2005 Results
* Service fee revenue excluding our former San Antonio and certain
Mid-Atlantic operations ("terminated operations") was $61.8 million
compared to $60.9 million for the first quarter 2004.
* Income from continuing operations was $787,000, or $0.03 per diluted
share, compared to income from continuing operations of $840,000, or
$0.04 per diluted share, for the first quarter 2004.
* Income from continuing operations excluding terminated operations
(defined and reconciled below) was $582,000, or $0.03 per diluted
share, compared to a loss of $8,000, or breakeven on a per-share basis
for the first quarter 2004.
* EBITDA (defined and reconciled below) was $11.9 million, compared to
$12.3 million for the first quarter 2004.
* EBITDA from continuing operations excluding terminated operations
(defined and reconciled below) was $11.6 million, compared to
$10.4 million for the first quarter 2004, an increase of more than
10%.
* Cash and cash equivalents were $44.4 million at March 31, 2005,
compared to $34.1 million at December 31, 2004.
* Net debt (total debt less cash and cash equivalents and restricted
cash) was $120.4 million at March 31, 2005, compared to $130.9 million
at December 31, 2004. Total debt at March 31, 2005 was
$170.4 million, compared to $170.5 million at December 31, 2004.
* Days sales outstanding (DSOs) were 48 days at March 31, 2005 and
December 31, 2004.
"We made solid operational and financial progress during the first
quarter. We grew EBITDA by more than 10%, maintained our strong DSO
performance, produced over $13 million in cash flow from operations, and are
on track with our Radiologix Enhanced Workflow And Record Distribution
("REWARD") implementation," said Sami S. Abbasi, president and chief executive
officer of Radiologix. "Throughout 2005, we will continue to focus on
improving our primary operations, implementing and ensuring the success of our
REWARD Program, and charting our future strategic direction. We have more
work to do in each of these areas, but we are headed in the right direction."
Sarbanes-Oxley 404
As noted in our 2004 Form 10-K, subsequent to December 31, 2004, but prior
to the finalization of our 2004 consolidated financial statements, the company
placed into operation new controls to address the material weakness we
identified in our accounts receivable estimation process. These new controls
include a retrospective collection analysis that matches cash collections to
billed charges by month of service.
We believe these new controls have remediated the material weakness that
existed as of December 31, 2004, and that these controls operated effectively
during the first quarter 2005.
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.
Income from continuing operations is defined as income from continuing
operations calculated in accordance with GAAP.
Income from continuing operations excluding terminated operations is
defined as income from continuing operations, excluding terminated San Antonio
and Mid-Atlantic operations.
EBITDA is defined as earnings before interest, taxes, depreciation and
amortization, each from continuing operations, plus restricted stock
compensation expense, and is reconciled to its nearest comparable GAAP
financial measure.
EBITDA from continuing operations excluding terminated operations, is
defined as EBITDA, excluding terminated San Antonio and Mid-Atlantic
operations.
EBITDA and EBITDA from continuing operations 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 and EBITDA from continuing operations excluding terminated
operations should not be considered measures of financial performance under
GAAP, and the items excluded from EBITDA and EBITDA from continuing operations
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 and EBITDA from continuing operations 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, May 3, 2005, at 8:00 a.m., Central Time / 9:00 a.m.
Eastern Time.
You may access the call by dialing (800) 819-9193 and entering code
7435690. A replay of the call is available by dialing (888) 203-1112 and
entering code 7435690.
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 First
Quarter 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 73 diagnostic imaging centers located in 8 states as of
March 31, 2005.
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
May 3, 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)
March 31, December 31,
2005 2004
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $44,408 $34,084
Restricted cash 5,561 5,539
Accounts receivable, net of allowances 44,304 44,197
Due from affiliates 2,197 2,029
Federal and state income tax receivables 1,865 3,905
Assets held for sale --- 305
Other current assets 5,322 6,996
Total current assets 103,657 97,055
Property and equipment, net 58,509 58,627
Investments in joint ventures 8,473 8,137
Goodwill 2,241 2,241
Intangible assets, net 70,175 71,200
Deferred financing costs, net 6,179 6,591
Deferred income taxes 9,229 8,892
Other assets 1,328 1,328
Total assets $259,791 $254,071
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and other accrued expenses $10,278 $11,342
Accrued physician retention 7,927 8,384
Accrued salaries and benefits 8,545 7,339
Deferred income taxes 3,874 3,202
Accrued interest 4,853 708
Current portion of capital lease
obligations 13 48
Current portion of long-term debt 53 109
Other current liabilities 690 536
Total current liabilities 36,233 31,668
Long-term debt, net of current portion 158,270 158,270
Convertible debt 11,980 11,980
Capital lease obligations, net of
current portion 76 92
Deferred revenue 6,801 6,903
Other liabilities 1,114 1,000
Total liabilities 214,474 209,913
Commitments and contingencies
Minority interests in consolidated
subsidiaries 1,391 1,242
STOCKHOLDERS' EQUITY:
Common stock 2 2
Treasury stock (180) (180)
Additional paid-in capital 14,702 14,210
Retained earnings 29,402 28,884
Total stockholders' equity 43,926 42,916
Total liabilities and
stockholders' equity $259,791 $254,071
Radiologix, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
For the Three Months
Ended March 31,
2005 2004
(Unaudited) (Unaudited)
Service fee revenue $62,751 $66,042
Costs of operations:
Cost of services 39,820 40,277
Equipment leases 2,806 4,523
Provision for doubtful accounts 4,467 5,492
Depreciation and amortization 5,838 6,154
Gross profit 9,820 9,596
Corporate general and administrative 4,348 3,791
Interest expense, net, including amortization
of deferred financing costs 4,676 4,746
Income before equity in earnings of
unconsolidated affiliates, minority interests
in consolidated subsidiaries, income taxes and
discontinued operations 796 1,059
Equity in earnings of unconsolidated affiliates 622 596
Minority interests in income of consolidated
subsidiaries (149) (255)
INCOME BEFORE INCOME TAXES AND DISCONTINUED
OPERATIONS 1,269 1,400
Income tax expense 482 560
INCOME FROM CONTINUING OPERATIONS 787 840
Discontinued Operations:
Loss from discontinued operations before
income taxes (434) (5,912)
Income tax benefit (165) (2,365)
Loss from discontinued operations (269) (3,547)
NET INCOME (LOSS) $518 $(2,707)
INCOME (LOSS) PER COMMON SHARE:
Income (loss) from continuing operations -
basic $0.03 $0.04
Income (loss) from discontinued operations -
basic $(0.01) $(0.16)
Net income (loss) - basic $0.02 $(0.12)
Income (loss) from continuing operations -
diluted $0.03 $0.04
Income (loss) from discontinued operations -
diluted $(0.01) $(0.16)
Net income (loss) - diluted $0.02 $(0.12)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 21,913,738 21,765,985
Diluted 22,509,821 22,287,561
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information
(In thousands)
Reconciliation of Income from
Continuing Operations to EBITDA For the Three Months
Ended March 31,
2005 2004
GAAP: Income from continuing operations $787 840
Add: Income tax expense 482 560
Add: Interest expense, net 4,676 4,746
Add: Depreciation and amortization 5,838 6,154
Add: Restricted stock compensation expense 101 ---
EBITDA $11,884 $12,300
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information,
Excluding Terminated Operations
(In thousands)
Reconciliation of Income from Continuing
Operations to EBITDA from Continuing
Operations Excluding Terminated Operations For the Three Months
Ended March 31,
2005 2004
Income (loss) from continuing operations
excluding terminated operations
$582 $(8)
Add: Income tax expense 356 83
Add: Interest expense, net 4,676 4,642
Add: Depreciation and amortization 5,838 5,724
Add: Restricted stock compensation expense 101 ---
EBITDA from continuing operations excluding
terminated operations $11,552 $10,441
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Three Months Ended March 31, 2005
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $62,751 $930 $61,821
Costs of operations:
Cost of services 39,820 354 39,466
Equipment leases 2,806 --- 2,806
Provision for doubtful accounts 4,467 244 4,223
Depreciation and amortization 5,838 1 5,837
Gross profit 9,820 331 9,489
Corporate general and administrative 4,348 --- 4,348
Interest expense, net, including
amortization of deferred financing
costs 4,676 --- 4,676
Income before equity in earnings of
unconsolidated affiliates, minority
interests in consolidated
subsidiaries, income taxes and
discontinued operations 796 331 465
Equity in earnings of unconsolidated
affiliates 622 --- 622
Minority interests in income of
consolidated subsidiaries (149) --- (149)
INCOME BEFORE INCOME TAXES AND
DISCONTINUED OPERATIONS 1,269 331 938
Income tax expense 482 126 356
INCOME FROM CONTINUING OPERATIONS $787 $205 $582
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Three Months Ended March 31, 2004
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $66,042 $5,191 $60,851
Costs of operations:
Cost of services 40,277 2,631 37,646
Equipment leases 4,523 4 4,519
Provision for doubtful accounts 5,492 703 4,789
Depreciation and amortization 6,154 430 5,724
Gross profit 9,596 1,423 8,173
Corporate general and administrative 3,791 --- 3,791
Interest expense, net, including
amortization of deferred financing
costs 4,746 104 4,642
Income (loss) before equity in
earnings of unconsolidated
affiliates, minority interests in
consolidated subsidiaries, income
taxes and discontinued operations 1,059 1,319 (260)
Equity in earnings of unconsolidated
affiliates 596 107 489
Minority interests in income of
consolidated subsidiaries (255) (101) (154)
INCOME BEFORE INCOME TAXES AND
DISCONTINUED OPERATIONS 1,400 1,325 75
Income tax expense 560 477 83
INCOME (LOSS) FROM CONTINUING
OPERATIONS $840 $848 $(8)
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, Inc., +1-214-303-2702, or
paul.streiber@radiologix.com
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