Alliance HealthCare Services, Inc. (NYSE:AIQ) (the “Company” or “Alliance”), a leading national provider of outpatient diagnostic imaging and radiation therapy services, reaffirmed full year 2011 guidance and announced financial guidance for full year 2012.
Full Year 2011 Guidance
The Company reaffirms its full year 2011 revenue and Adjusted EBITDA guidance. Adjusted EBITDA is defined below. Full year 2011 revenue is expected to range from $475 million to $495 million and Adjusted EBITDA is expected to range from $140 million to $150 million. Alliance expects to report full year 2011 revenue and Adjusted EBITDA at the higher end of the respective guidance ranges.
Full Year 2012 Guidance
For full year 2012, the Company expects revenue to range from $470 million to $500 million and Adjusted EBITDA is expected to range from $140 million to $160 million.
Paul S. Viviano, Chairman of the Board and Chief Executive Officer, stated, “Alliance is positioned to stabilize its Adjusted EBITDA in the context of the challenging general economic conditions and trends which continue to adversely impact demand and volumes for the healthcare services sector. As previously announced, the Company’s ongoing organizational restructuring initiatives are designed to stabilize and grow imaging services, expand radiation oncology services, increase organizational efficiency and reduce costs. Alliance is implementing a turnaround plan to realize $25 million of annualized cost savings and efforts will continue throughout 2012 to put additional savings in place.”
Included in Alliance’s 2012 full year Adjusted EBITDA guidance range is approximately $18 million to $20 million of cost reductions and increase in organizational efficiencies.
For full year 2012, the Company expects MRI revenue to decrease 4% to 9%. MRI volume is expected to decrease 2% to 4% and MRI pricing is expected to decrease 2% to 5%. PET/CT revenue is expected to decrease 5% to 10%. PET/CT volume is expected to decrease 3% to 5% and PET/CT pricing is expected to decrease 2% to 5%.