Alliance HealthCare Services, Inc. (NYSE:AIQ) (the “Company” or “Alliance”), a leading national provider of outpatient diagnostic imaging and radiation therapy services, announced results for the second quarter ended June 30, 2012.
Second Quarter Highlights
- Adjusted EBITDA increased 4.4% sequentially to $39.4 million and 1.6% from the year ago period of $38.8 million
- Cost saving initiatives generated $33 million in annualized savings, versus goal of $20- $25 million
- Total debt (including current maturities) less cash and equivalents, decreased $24.3 million in the first six months of 2012 compared to $19.4 million in the same period last year, a 25% improvement
- Company updates 2012 guidance based upon increases in Adjusted EBITDA and cash flows
Second Quarter 2012 Financial Results
“The solid results we are reporting today reflect our continued progress against our strategic initiatives and drive towards stability and growth,” stated Larry C. Buckelew, Chairman of the Board and Chief Executive Officer. “Having been in my new role for two months, I am now more convinced than ever that we have the right team in place to enhance the long-term strategy and facilitate our vision of expanding our role with our customers.“Our results this quarter are primarily attributable to the successful implementation of Project Phoenix, the cost savings plan that we introduced last summer. Our team was able to identify and generate annualized savings which significantly exceeded our goals. The success and discipline of this program has permanently changed our corporate culture to focus on continuously improving our operational efficiency. I am fully committed to building upon these achievements, and realizing our long-term vision to become a more vital and strategic partner to our customers.” Revenue for the second quarter of 2012 was sequentially stable at $120.7 million compared to $120.8 million in the first quarter of 2012. On a year-over-year basis, second quarter 2012 revenue decreased 5.6% from $127.8 million in the second quarter of 2011, in part due to trimming our portfolio of unprofitable Imaging Division business resulting in a revenue reduction, partially offset by an organic increase in radiation oncology revenue of $2.0 million, or 9.8%.