Alliance HealthCare Services, Inc. (Alliance HealthCare), a US-based provider of outpatient diagnostic imaging and radiation therapy services, has reported revenues of $495.8 million for the year 2008, up 11.4%, compared with the revenues of $444.9 million in the previous year end. It has reported a net income of $16.5 million, or $0.32 per diluted share, for the year 2008, compared with net income of $16.2 million, or $0.31 per diluted share, in the previous year end.
Revenue for the fourth quarter of 2008 increased by 10.8% to $125.8 million from $113.6 million in the fourth quarter of 2007.
Alliance HealthCare’s adjusted EBITDA increased 12.1% to $44.5 million in the fourth quarter of 2008 compared to $39.7 million in the fourth quarter 2007. For full year 2008, Adjusted EBITDA totaled $182.6 million, which was within the company’s guidance range of $174 million to $184 million. Full year 2008 Adjusted EBITDA increased 10.2% to $182.6 million compared to $165.6 million for full year 2007.
For full year 2007 adjusted EBITDA included $2.5 million of gains as a result of a sale/leaseback transaction and a gain on sale of real estate. These gains represented 1.5% of the full year 2007 Adjusted EBITDA. These amounts are included in the line item, “Earnings from unconsolidated investees” in Alliance HealthCare’s condensed consolidated statements of operations and comprehensive income for full year 2007.
Earnings per share on a diluted basis, computed in accordance with generally accepted accounting principles, was $0.03 per share in the fourth quarter of 2008 and $0.04 per share in the fourth quarter of 2007. Interest expense and other, net, in the fourth quarter of 2008 was negatively impacted by a fair value adjustment of an interest rate swap totaling $3.1 million, or $0.04 per diluted share.
For full year 2008, interest expense and other, net, was negatively impacted by a fair value adjustment of an interest rate swap totaling $2.4 million, or $0.03 per diluted share. For full year 2007, the gains due to the sale/leaseback transaction and sale of real estate favorably impacted diluted earnings per share by $0.03.
Cash flows provided by operating activities were $31.4 million in the fourth quarter of 2008 compared to $37.7 million in the fourth quarter of 2007, and totaled $128.1 million and $118.0 million for full year 2008 and 2007, respectively. Capital expenditures in the fourth quarter of 2008 were $25.0 million compared to $20.1 million in the fourth quarter of 2007, and were $66.2 million and $65.3 million for full year 2008 and 2007, respectively.
Alliance HealthCare opened 12 new fixed-site imaging centers in the fourth quarter of 2008 and opened 21 new fixed-site imaging centers in full year 2008. Alliance HealthCare also opened 3 radiation oncology centers for both the fourth quarter and full year 2008 and acquired six stereotactic radiosurgery facilities in full year 2008.
Alliance HealthCare’s net debt, defined as total long-term debt (including current maturities) less cash and cash equivalents, increased $39.4 million to $589.3 million at December 31, 2008 from $549.9 million at December 31, 2007. For full year 2008, the company invested $88.9 million on acquisitions; including cash used to fund escrow amounts and acquired debt balances. Cash and cash equivalents were $73.3 million at December 31, 2008 and $120.9 million at December 31, 2007.
The company’s total long-term debt (including current maturities) decreased to $662.6 million at December 31, 2008 from $670.8 million as of December 31, 2007.
Chairman of the board and Chief Executive Officer of the company, Paul S. Viviano, said that, “We are pleased with Alliance HealthCare HealthCare Services’ strong performance in 2008 and achievement of revenue and Adjusted EBITDA results at the high-end of our guidance ranges. We will continue our investment strategy of opening new radiation oncology centers, developing our PET/CT operations, developing new fixed-site imaging centers in partnership with hospitals, and investing prudently in our mobile MRI business. In addition, Alliance HealthCare continues to diligently evaluate selective acquisitions. We will continue our focus on operating our core imaging business efficiently and generating significant cash flow. We are also pleased to reaffirm our guidance for full year 2009.”