DALLAS, Aug. 4 /PRNewswire-FirstCall/ -- Radiologix, Inc. (Amex: RGX), a
leading national provider of diagnostic imaging services, today announced
second quarter and year to date financial results for the period ended
June 30, 2005.
Select Financial Information
(in thousands of dollars) For the Three Months For the Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
Service fee revenue,
as reported $64,311 $66,211 $127,062 $132,253
Service fee revenue
excluding terminated
operations(A) $64,272 $62,237 $126,093 $123,088
EBITDA(A) $11,804 $12,535 $23,688 $24,835
EBITDA from continuing
operations excluding
terminated operations(A) $11,866 $11,114 $23,418 $21,555
Net income (loss),
as reported $649 $(2,109) $1,167 $(4,816)
Income from continuing
operations, as reported $629 $823 $1,416 $1,663
Income (loss) from
continuing operations
excluding terminated
operations(A) $672 $(3,021) $1,254 $(3,029)
(A) As defined and reconciled below
Second Quarter 2005 Results
For the second quarter ended June 30, 2005, service fee revenue was
$64.3 million, compared to $66.2 million for the second quarter 2004.
Radiologix earned $649,000, or $0.03 per diluted share, compared to a net loss
of $2.1 million or $0.09 per share for the second quarter 2004.
* Service fee revenue excluding terminated operations was $64.3 million
compared to $62.2 million for the second quarter 2004, an increase of
3.3%.
* Income from continuing operations was $629,000, or $0.03 per diluted
share, compared to income from continuing operations of $823,000, or
$0.04 per diluted share, for the second quarter 2004.
* Income from continuing operations excluding terminated operations
(defined and reconciled below) was $672,000, or $0.03 per diluted
share, compared to a loss of $3.0 million, or $0.14 per diluted share
for the second quarter 2004.
* EBITDA (defined and reconciled below) was $11.8 million, compared to
$12.5 million for the second quarter 2004.
* EBITDA from continuing operations excluding terminated operations
(defined and reconciled below) was $11.9 million, compared to
$11.1 million for the second quarter 2004.
Year to Date June 30, 2005 Results
For the six months ended June 30, 2005, service fee revenue was
$127.1 million, compared to $132.3 million for the same period last year.
Radiologix earned $1.2 million, or $0.05 per diluted share, compared to a net
loss of $4.8 million or $0.22 loss per share for the six months ended June 30,
2004.
* Service fee revenue excluding terminated operations was $126.1 million
compared to $123.1 million for the six months ended June 30, 2004, a
2.4% increase.
* Income from continuing operations was $1.4 million, or $0.06 per
diluted share, compared to income from continuing operations of
$1.7 million, or $0.07 per diluted share, for the six months ended
June 30, 2004.
* Income from continuing operations excluding terminated operations was
$1.3 million or $0.06 per diluted share, compared to a loss of
$3.0 million, or $0.14 per diluted share for the six months ended
June 30, 2004.
* EBITDA was $23.7 million, compared to $24.8 million for the six months
ended June 30, 2004.
* EBITDA from continuing operations excluding terminated operations was
$23.4 million, compared to $21.6 million for the six months ended
June 30, 2004.
Balance Sheet
* Cash and cash equivalents were $42.6 million at June 30, 2005,
compared to $34.1 million at December 31, 2004.
* Net debt (total debt less cash and cash equivalents and restricted
cash) was $122.1 million at June 30, 2005, compared to $130.9 million
at December 31, 2004. Total debt at June 30, 2005 was $170.4 million,
compared to $170.5 million at December 31, 2004.
* Days sales outstanding (DSOs) were 46 days at June 30, 2005, compared
to 48 days at December 31, 2004.
"This quarter, we continued to build on the solid operational and
financial gains achieved in the first quarter 2005, and we have made
significant progress from a year ago," said Sami S. Abbasi, president and
chief executive officer of Radiologix. "In the second quarter 2005, we grew
EBITDA from continuing operations excluding terminated operations, generated
strong positive cash flow from operations, and further improved our impressive
DSO performance. For the remainder of 2005, we will continue to focus on
improving our primary operations -- with the help of our newly appointed chief
operating officer, Carol Gleber -- implement and ensure the success of our
Radiologix Enhanced Workflow And Record Distribution ("REWARD") Program, and
continue to develop our future strategic 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, Radiologix
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 six months of 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 certain 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 certain 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 Thursday, August 4, 2005, at 8:00 a.m., Central Time / 9:00
a.m. Eastern Time.
You may access the call by dialing (800) 811-8824 and entering code
4846080. A replay of the call is available by dialing (888) 203-1112 and
entering code 4846080.
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 Second
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 72 diagnostic imaging centers located in 8 states as of
June 30, 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 August 4,
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)
June 30, December 31,
2005 2004
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $42,645 $34,084
Restricted cash 5,594 5,539
Accounts receivable, net of allowances 42,086 44,197
Due from affiliates 2,548 2,029
Federal and state income tax receivables 6,983 3,905
Assets held for sale --- 305
Other current assets 4,727 6,996
Total current assets 104,583 97,055
Property and equipment, net 60,365 58,627
Investments in joint ventures 9,247 8,137
Goodwill 2,241 2,241
Intangible assets, net 69,148 71,200
Deferred financing costs, net 5,766 6,591
Deferred income taxes 3,639 8,892
Other assets 1,275 1,328
Total assets $256,264 $254,071
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and other
accrued expenses $7,440 $11,342
Accrued physician retention 8,155 8,384
Accrued salaries and benefits 10,535 7,339
Deferred income taxes 3,649 3,202
Accrued interest 687 708
Current portion of capital
lease obligations 30 48
Current portion of long-term debt --- 109
Other current liabilities 644 536
Total current liabilities 31,140 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 83 92
Deferred revenue 6,699 6,903
Other liabilities 1,281 1,000
Total liabilities 209,453 209,913
Commitments and contingencies
Minority interests in consolidated
subsidiaries 1,545 1,242
STOCKHOLDERS' EQUITY:
Common stock 2 2
Treasury stock (180) (180)
Additional paid-in capital 15,393 14,210
Retained earnings 30,051 28,884
Total stockholders' equity 45,266 42,916
Total liabilities and
stockholders' equity $256,264 $254,071
Radiologix, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
Service fee revenue $64,311 $66,211 $127,062 $132,253
Costs of operations:
Cost of services 40,629 39,306 80,449 79,583
Equipment leases 3,231 4,868 6,037 9,391
Provision for
doubtful accounts 4,659 5,364 9,126 10,856
Depreciation and
amortization 6,051 5,881 11,889 12,035
Gross profit 9,741 10,792 19,561 20,388
Corporate general and
administrative 4,985 4,707 9,333 8,498
Impairment of goodwill,
intangible and
long-lived assets --- 5,752 --- 5,752
Gain on sale of operations --- (4,669) --- (4,669)
Interest expense, net,
including amortization
of deferred financing
costs 4,565 4,666 9,241 9,412
Income before equity in
earnings of unconsolidated
affiliates,
Minority interests in
consolidated subsidiaries,
income taxes and
discontinued
operations 191 336 987 1,395
Equity in earnings of
investments 1,039 758 1,661 1,354
Minority interests in
income of consolidated
subsidiaries (154) (189) (303) (444)
INCOME BEFORE INCOME
TAXES AND DISCONTINUED
OPERATIONS 1,076 905 2,345 2,305
Income tax expense 447 82 929 642
INCOME FROM CONTINUING
OPERATIONS 629 823 1,416 1,663
Discontinued Operations:
Income (loss) from
discontinued
operations before
income taxes 30 (4,887) (404) (10,799)
Income tax expense
(benefit) 10 (1,955) (155) (4,320)
Income (loss) from
discontinued
operations 20 (2,932) (249) (6,479)
NET INCOME (LOSS) $649 $(2,109) $1,167 $(4,816)
INCOME (LOSS) PER
COMMON SHARE
Income from continuing
operations-basic $0.03 $0.04 $0.06 $0.08
Income (loss) from
discontinued
operations-basic --- (0.14) (0.01) (0.30)
Net income
(loss)-basic $0.03 $(0.10) $0.05 $(0.22)
Income from continuing
operations-diluted $0.03 $0.04 $0.06 $0.07
Income (loss) from
discontinued
operations-diluted --- (0.13) (0.01) (0.29)
Net income
(loss)-diluted $0.03 $(0.09) $0.05 $(0.22)
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic 22,339,815 21,769,804 22,128,425 21,767,894
Diluted 22,572,909 22,369,560 22,625,931 22,328,560
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information
(In thousands)
Reconciliation of Income from
Continuing Operations to EBITDA
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
GAAP: Income from
continuing operations $629 823 $1,416 1,663
Add: Income tax expense 447 82 929 642
Add: Interest expense,
net 4,565 4,666 9,241 9,412
Add: Depreciation and
amortization 6,051 5,881 11,889 12,035
Add: Impairment of
goodwill, intangible,
and long-lived assets --- 5,752 --- 5,752
Add: Gain on sale of
operations --- (4,669) --- (4,669)
Add: Restricted stock
compensation expense 112 --- 213 ---
EBITDA $11,804 $12,535 $23,688 $24,835
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 For the Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
Income (loss) from
continuing operations
excluding terminated
operations $672 $(3,021) $1,254 $(3,029)
Add: Income tax expense
(benefit) 466 (1,924) 822 (1,841)
Add: Interest expense,
net 4,565 4,620 9,241 9,262
Add: Depreciation and
amortization 6,051 5,687 11,888 11,411
Add: Restricted stock
compensation expense 112 --- 213 ---
Add: Impairment of
goodwill, intangible,
and long-lived assets --- 5,752 --- 5,752
EBITDA from continuing
operations excluding
terminated operations $11,866 $11,114 $23,418 $21,555
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Three Months Ended June 30, 2005
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $64,311 $39 $64,272
Costs of operations:
Cost of services 40,629 84 40,545
Equipment leases 3,231 18 3,213
Provision for doubtful accounts 4,659 (1) 4,660
Depreciation and amortization 6,051 --- 6,051
Gross profit 9,741 (62) 9,803
Corporate general and administrative 4,985 --- 4,985
Interest expense, net, including
amortization of deferred
financing costs 4,565 --- 4,565
Income (loss) before equity in
earnings of unconsolidated
affiliates, minority interests in
consolidated subsidiaries, income
taxes and discontinued operations 191 (62) 253
Equity in earnings of
unconsolidated affiliates 1,039 --- 1,039
Minority interests in income of
consolidated subsidiaries (154) --- (154)
INCOME (LOSS) BEFORE INCOME TAXES
AND DISCONTINUED OPERATIONS 1,076 (62) 1,138
Income tax expense (benefit) 447 (19) 466
INCOME (LOSS) FROM CONTINUING
OPERATIONS $629 $(43) $672
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Three Months Ended June 30, 2004
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $66,211 $3,974 $62,237
Costs of operations:
Cost of services 39,306 1,784 37,522
Equipment leases 4,868 113 4,755
Provision for doubtful accounts 5,364 636 4,728
Depreciation and amortization 5,881 194 5,687
Gross profit 10,792 1,247 9,545
Corporate general and administrative 4,707 --- 4,707
Impairment of goodwill, intangible
and long-lived assets 5,752 --- 5,752
Gain on sale of operations (4,669) (4,669) ---
Interest expense, net, including
amortization of deferred
financing costs 4,666 46 4,620
Income (loss) before equity in
earnings of unconsolidated
affiliates, minority interests in
consolidated subsidiaries, income
taxes and discontinued operations 336 5,870 (5,534)
Equity in earnings of
unconsolidated affiliates 758 7 751
Minority interests in income of
consolidated subsidiaries (189) (27) (162)
INCOME (LOSS) BEFORE INCOME TAXES
AND DISCONTINUED OPERATIONS 905 5,850 (4,945)
Income tax expense (benefit) 82 2,006 (1,924)
INCOME (LOSS) FROM CONTINUING
OPERATIONS $823 $3,844 $(3,021)
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Six Months Ended June 30, 2005
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $127,062 $969 $126,093
Costs of operations:
Cost of services 80,449 438 80,011
Equipment leases 6,037 18 6,019
Provision for doubtful accounts 9,126 243 8,883
Depreciation and amortization 11,889 1 11,888
Gross profit 19,561 269 19,292
Corporate general and administrative 9,333 --- 9,333
Interest expense, net, including
amortization of deferred
financing costs 9,241 --- 9,241
Income before equity in earnings
of unconsolidated affiliates,
minority interests in consolidated
subsidiaries, income taxes and
discontinued operations 987 269 718
Equity in earnings of
unconsolidated affiliates 1,661 --- 1,661
Minority interests in income of
consolidated subsidiaries (303) --- (303)
INCOME BEFORE INCOME TAXES AND
DISCONTINUED OPERATIONS 2,345 269 2,076
Income tax expense 929 107 822
INCOME FROM CONTINUING OPERATIONS $1,416 $162 $1,254
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Six Months Ended June 30, 2004
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $132,253 $9,165 $123,088
Costs of operations:
Cost of services 79,583 4,415 75,168
Equipment leases 9,391 117 9,274
Provision for doubtful accounts 10,856 1,339 9,517
Depreciation and amortization 12,035 624 11,411
Gross profit 20,388 2,670 17,718
Corporate general and administrative 8,498 --- 8,498
Impairment of goodwill, intangible
and long-lived assets 5,752 --- 5,752
Gain on sale of operations (4,669) (4,669) ---
Interest expense, net, including
amortization of deferred
financing costs 9,412 150 9,262
Income (loss) before equity in
earnings of unconsolidated
affiliates, minority interests in
consolidated subsidiaries, income
taxes and discontinued operations 1,395 7,189 (5,794)
Equity in earnings of
unconsolidated affiliates 1,354 114 1,240
Minority interests in income of
consolidated subsidiaries (444) (128) (316)
INCOME (LOSS) BEFORE INCOME TAXES
AND DISCONTINUED OPERATIONS 2,305 7,175 (4,870)
Income tax expense (benefit) 642 2,483 (1,841)
INCOME (LOSS) FROM CONTINUING
OPERATIONS $1,663 $4,692 $(3,029)
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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