DALLAS, Nov. 3 /PRNewswire-FirstCall/ -- Radiologix, Inc. (Amex: RGX), a
leading national provider of diagnostic imaging services, today announced
financial results for its third quarter and nine months ended September 30,
2005.
Select Financial Information
(in thousands of dollars)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2005 2004 2005 2004
Service fee revenue,
as reported $62,258 $63,613 $189,320 $195,866
Service fee revenue
excluding terminated
operations(A) $62,259 $62,164 $188,352 $185,252
EBITDA(A) $11,165 $10,217 $34,853 $35,052
EBITDA from continuing
operations excluding
terminated operations(A) $11,221 $10,221 $34,639 $31,776
Net income (loss),
as reported $(199) $(5,387) $968 $(10,203)
Income (loss) from
continuing operations,
as reported $162 $(5,176) $1,578 $(3,513)
Income (loss) from
continuing operations
excluding terminated
operations(A) $199 $(379) $1,453 $(3,408)
(A) As defined and reconciled below
Third Quarter 2005 Results
For the third quarter ended September 30, 2005, service fee revenue was
$62.3 million, compared to $63.6 million for the third quarter 2004.
Radiologix lost $199,000, or $0.01 per diluted share, compared to a net loss
of $5.4 million or $0.25 per diluted share for the third quarter 2004.
* Service fee revenue excluding terminated operations was
$62.3 million, compared to $62.2 million for the third quarter 2004.
* Income from continuing operations was $162,000, or $0.01 per diluted
share, compared to a loss from continuing operations of $5.2 million,
or $0.24 per diluted share, for the third quarter 2004.
* Income from continuing operations excluding terminated operations
(defined and reconciled below) was $199,000, or $0.01 per diluted
share, compared to a loss of $379,000, or $0.02 per diluted share for
the third quarter 2004.
* EBITDA (defined and reconciled below) was $11.2 million, compared to
$10.2 million for the third quarter 2004.
* EBITDA from continuing operations excluding terminated operations
(defined and reconciled below) was $11.2 million, compared to
$10.2 million for the third quarter 2004.
Nine Months Ended September 30, 2005 Results
For the nine months ended September 30, 2005, service fee revenue was
$189.3 million, compared to $195.9 million for the same period last year.
Radiologix earned $1.0 million, or $0.04 per diluted share, compared to a net
loss of $10.2 million or $0.47 loss per share for the nine months ended
September 30, 2004.
* Service fee revenue excluding terminated operations was
$188.4 million, compared to $185.3 million for the nine months ended
September 30, 2004.
* Income from continuing operations was $1.6 million, or $0.07 per
diluted share, compared to a loss from continuing operations of
$3.5 million, or $0.16 per diluted share, for the nine months ended
September 30, 2004.
* Income from continuing operations excluding terminated operations was
$1.5 million or $0.06 per diluted share, compared to a loss of
$3.4 million, or $0.16 per diluted share for the nine months ended
September 30, 2004.
* EBITDA was $34.9 million, compared to $35.1 million for the nine
months ended September 30, 2004.
* EBITDA from continuing operations excluding terminated operations was
$34.6 million, compared to $31.8 million for the nine months ended
September 30, 2004.
Balance Sheet
* Cash and cash equivalents were $42.4 million at September 30, 2005,
compared to $34.1 million at December 31, 2004.
* Net debt (total debt less cash and cash equivalents and restricted
cash) was $122.3 million at September 30, 2005, compared to
$130.9 million at December 31, 2004. Total debt at September 30,
2005 was $170.3 million, compared to $170.5 million at December 31,
2004.
* Days sales outstanding (DSOs) were 45 days at September 30, 2005,
compared to 48 days at December 31, 2004.
"The third quarter and year-to-date results show good progress from a year
ago. We grew service fee revenue and EBITDA excluding the terminated
operations, generated strong positive cash flow from operations, further
improved our DSO performance, and maintained strong liquidity," said Sami S.
Abbasi, president and chief executive officer of Radiologix. "We are pleased
with the progress that we are making against our three key focus areas for
2005. Our primary operations are improving, we are on track with our
Radiologix Enhanced Workflow And Record Distribution (REWARD) Program, and we
have the right pieces in place to execute our longer-term strategy."
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 nine months ended September 30, 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.
As 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, on
Thursday, November 3, 2005, at 8:00 a.m. Central Time / 9:00 a.m. Eastern
Time.
You may access the call by dialing (800) 811-0667 and entering code
8184087. A replay of the call will be available by dialing (888) 203-1112 and
entering code 8184087.
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 Third
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
September 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 November 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)
September 30, December 31
2005, 2004
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $42,440 $34,084
Restricted cash 5,613 5,539
Accounts receivable, net of allowances 41,122 44,197
Due from affiliates 1,413 2,029
Federal and state income tax receivables 6,954 3,905
Assets held for sale --- 305
Other current assets 5,818 6,996
Total current assets 103,360 97,055
Property and equipment, net 65,449 58,627
Investments in joint ventures 10,057 8,137
Goodwill 2,241 2,241
Intangible assets, net 68,121 71,200
Deferred financing costs, net 5,354 6,591
Deferred income taxes 3,639 8,892
Other assets 1,076 1,328
Total assets $259,297 $254,071
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and other
accrued expenses $7,364 $11,342
Accrued physician retention 8,048 8,384
Accrued salaries and benefits 9,525 7,339
Deferred income taxes 3,649 3,202
Accrued interest 4,841 708
Current portion of capital
lease obligations 31 48
Current portion of long-term debt (26) 109
Other current liabilities 582 536
Total current liabilities 34,014 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 6,596 6,903
Other liabilities 1,296 1,000
Total liabilities 212,239 209,913
Commitments and contingencies
Minority interests in consolidated
subsidiaries 1,729 1,242
STOCKHOLDERS' EQUITY:
Common stock 2 2
Treasury stock (180) (180)
Additional paid-in capital 15,655 14,210
Retained earnings 29,852 28,884
Total stockholders' equity 45,329 42,916
Total liabilities and
stockholders' equity $259,297 $254,071
Radiologix, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2005 2004 2005 2004
Service fee revenue $62,258 $63,613 $189,320 $195,866
Costs of operations:
Cost of services 40,389 39,825 120,838 119,408
Equipment leases 3,545 4,554 9,582 13,945
Provision for doubtful
accounts 4,521 5,329 13,647 16,185
Depreciation and
amortization 6,125 5,449 18,014 17,484
Gross profit 7,678 8,456 27,239 28,844
Severance and other
related costs --- 405 --- 405
Corporate general and
administrative 3,862 5,285 13,195 13,783
Impairment of goodwill,
intangible and
long-lived assets --- 7,474 --- 13,226
Gain on sale of operations --- --- --- (4,669)
Interest expense, net,
including amortization
of deferred financing costs 4,561 4,603 13,802 14,015
Income (loss) before equity
in earnings of
unconsolidated affiliates,
minority interests in
consolidated subsidiaries,
income taxes and
discontinued operations (745) (9,311) 242 (7,916)
Equity in earnings of
investments 1,227 982 2,888 2,336
Minority interests in income
of consolidated subsidiaries (184) (195) (487) (639)
INCOME (LOSS) BEFORE INCOME
TAXES AND DISCONTINUED
OPERATIONS 298 (8,524) 2,643 (6,219)
Income tax expense 136 (3,348) 1,065 (2,706)
INCOME (LOSS) FROM
CONTINUING OPERATIONS 162 (5,176) 1,578 (3,513)
Discontinued Operations:
Loss from discontinued
operations before
income taxes (582) (351) (986) (11,150)
Income tax benefit (221) (140) (376) (4,460)
Loss from discontinued
operations (361) (211) (610) (6,690)
NET INCOME (LOSS) $(199) $(5,387) $968 $(10,203)
INCOME (LOSS) PER COMMON SHARE
Income (loss) from
continuing operations-basic $0.01 $(0.24) $0.07 $(0.16)
Loss from discontinued
operations-basic (0.02) (0.01) (0.03) (0.31)
Net income (loss)-basic $(0.01) $(0.25) $0.04 $(0.47)
Income (loss)
from continuing
operations-diluted $0.01 $(0.24) $0.07 $(0.16)
Loss from discontinued
operations-diluted (0.02) (0.01) (0.03) (0.31)
Net income
(loss)-diluted $(0.01) $(0.25) $0.04 $(0.47)
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic 22,138,145 21,805,607 22,030,959 21,780,557
Diluted 22,411,042 21,805,607 22,342,653 21,780,557
Radiologix, Inc.
Reconciliation of Non-GAAP Financial Information
(In thousands)
Reconciliation of Income from
Continuing Operations to EBITDA
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2005 2004 2005 2004
GAAP: Income (loss) from
continuing operations $162 (5,176) $1,578 (3,513)
Add: Income tax benefit 136 (3,348) 1,065 (2,706)
Add: Severance and other
related costs --- 405 --- 405
Add: Interest expense, net 4,561 4,603 13,802 14,015
Add: Depreciation and
amortization 6,125 5,449 18,014 17,484
Add: Impairment of goodwill,
intangible, and long-lived
assets --- 7,474 --- 13,226
Add: Gain on sale of operations --- --- --- (4,669)
Add: Litigation settlement --- 295 --- 295
Add: Charges related to
contract cancellations --- 515 --- 515
Add: Restricted stock
compensation expense 181 --- 394 ---
EBITDA $11,165 $10,217 $34,853 $35,052
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 Nine Months
Ended September 30, Ended September 30,
2005 2004 2005 2004
Income (loss) from continuing
operations excluding
terminated operations $199 $(379) $1,453 $(3,408)
Add: Income tax benefit 156 (535) 978 (2,376)
Add: Severance and other
related costs --- 405 --- 405
Add: Interest expense, net 4,560 4,585 13,801 13,847
Add: Depreciation and
amortization 6,125 5,387 18,013 16,798
Add: Impairment of goodwill,
intangible, and long-lived
assets --- 263 --- 6,015
Add: Litigation settlement --- 295 --- 295
Add: Charges related to
contract cancellations --- 200 --- 200
Add: Restricted stock
compensation expense 181 --- 394 ---
EBITDA from continuing
operations excluding
terminated operations $11,221 $10,221 $34,639 $31,776
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Three Months Ended
September 30, 2005
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $62,258 $(1) $62,259
Costs of operations:
Cost of services 40,389 48 40,341
Equipment leases 3,545 8 3,537
Provision for doubtful accounts 4,521 (1) 4,522
Depreciation and amortization 6,125 --- 6,125
Gross profit 7,678 (56) 7,734
Corporate general and
administrative 3,862 --- 3,862
Interest expense, net, including
amortization of deferred
financing costs 4,561 1 4,560
Income (loss) before equity
in earnings of unconsolidated
affiliates, minority interests
in consolidated subsidiaries,
income taxes and discontinued
operations (745) (57) (688)
Equity in earnings of
unconsolidated affiliates 1,227 --- 1,227
Minority interests in income of
consolidated subsidiaries (184) --- (184)
INCOME (LOSS) BEFORE INCOME TAXES
AND DISCONTINUED OPERATIONS 298 (57) 355
Income tax expense (benefit) 136 (20) 156
INCOME (LOSS) FROM CONTINUING
OPERATIONS $162 $(37) $199
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Three Months Ended
September 30, 2004
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $63,613 $1,449 $62,164
Costs of operations:
Cost of services 39,825 1,185 38,640
Equipment leases 4,554 (8) 4,562
Provision for doubtful accounts 5,329 591 4,738
Depreciation and amortization 5,449 62 5,387
Gross profit 8,456 (381) 8,837
Severance and other related costs 405 --- 405
Corporate general and administrative 5,285 --- 5,285
Impairment of goodwill, intangible
and long-lived assets 7,474 7,211 263
Interest expense, net, including
amortization of deferred
financing costs 4,603 18 4,585
Income (loss) before equity in
earnings of unconsolidated
affiliates, minority interests
in consolidated subsidiaries,
income taxes and discontinued
operations (9,311) (7,610) (1,701)
Equity in earnings of
unconsolidated affiliates 982 --- 982
Minority interests in income
of consolidated subsidiaries (195) --- (195)
INCOME (LOSS) BEFORE INCOME
TAXES AND DISCONTINUED OPERATIONS (8,524) (7,610) (914)
Income tax expense (benefit) (3,348) (2,813) (535)
INCOME (LOSS) FROM CONTINUING
OPERATIONS $(5,176) $(4,797) $(379)
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Nine Months Ended
September 30, 2005
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $189,320 $968 $188,352
Costs of operations:
Cost of services 120,838 486 120,352
Equipment leases 9,582 26 9,556
Provision for doubtful accounts 13,647 242 13,405
Depreciation and amortization 18,014 1 18,013
Gross profit 27,239 213 27,026
Corporate general and
administrative 13,195 --- 13,195
Interest expense, net,
including amortization
of deferred financing costs 13,802 1 13,801
Income before equity in
earnings of unconsolidated
affiliates, minority interests
in consolidated subsidiaries,
income taxes and discontinued
operations 242 212 30
Equity in earnings of
unconsolidated affiliates 2,888 --- 2,888
Minority interests in income
of consolidated subsidiaries (487) --- (487)
INCOME BEFORE INCOME TAXES AND
DISCONTINUED OPERATIONS 2,643 212 2,431
Income tax expense 1,065 87 978
INCOME FROM CONTINUING OPERATIONS $1,578 $125 $1,453
Radiologix, Inc.
Reconciliation of Financial Information, Excluding Terminated Operations
(In thousands)
For the Nine Months Ended
September 30, 2004
Radiologix
Excluding
Terminated Terminated
Radiologix Operations Operations
Service fee revenue $195,866 $10,614 $185,252
Costs of operations:
Cost of services 119,408 5,600 113,808
Equipment leases 13,945 109 13,836
Provision for doubtful accounts 16,185 1,930 14,255
Depreciation and amortization 17,484 686 16,798
Gross profit 28,844 2,289 26,555
Severance and other related costs 405 --- 405
Corporate general and
administrative 13,783 --- 13,783
Impairment of goodwill, intangible
and long-lived assets 13,226 7,211 6,015
Gain on sale of operations (4,669) (4,669) ---
Interest expense, net, including
amortization of deferred
financing costs 14,015 168 13,847
Income (loss) before equity in
earnings of unconsolidated
affiliates, minority interests
in consolidated subsidiaries,
income taxes and discontinued
operations (7,916) (421) (7,495)
Equity in earnings of
unconsolidated affiliates 2,336 114 2,222
Minority interests in income of
consolidated subsidiaries (639) (128) (511)
INCOME (LOSS) BEFORE INCOME TAXES
AND DISCONTINUED OPERATIONS (6,219) (435) (5,784)
Income tax expense (benefit) (2,706) (330) (2,376)
INCOME (LOSS) FROM CONTINUING
OPERATIONS $(3,513) $(105) $(3,408)
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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