Radiologix Reports Year-End Financial Results; Amends Bank Facility and Provides Merger Update

Apr 02, 2001, 01:00 ET from Radiologix, Inc.

    DALLAS, April 2 /PRNewswire/ -- Radiologix, Inc. (Amex:   RGX), the nation's
 leading radiology services company, today announced fourth quarter and
 year-end financial results for the period ended December 31, 2000.
 
     Financial Results
     For the twelve months ended December 31, 2000, Radiologix reported service
 fee revenue of $246.7 million, a 23 percent increase from the $199.7 million
 reported for the twelve months ended December 31, 1999.  Earnings before
 interest, taxes, depreciation and amortization, inclusive of income from joint
 ventures, net ("EBITDA") was $66.2 million before pre-tax fourth quarter
 charges of $18.8 million, and $47.4 million after the charges, for the twelve
 months ended December 31, 2000.  For the comparable period last year, EBITDA
 was $57.2 million. Same-store service fee revenue increased 9 percent during
 2000 compared to the same period last year.  Cash flow from operations for the
 full year was $13.3 million, compared with negative $1.5 million during 1999.
     For the twelve month period ended December 31, 2000, Radiologix reported
 fully diluted earnings per share of $0.75, before the fourth quarter charges,
 based on 22.1 million average shares outstanding.  Full year fully diluted
 earnings per share, after the charges, was $0.22 per share based on
 19.8 million average shares outstanding.  Fully diluted earnings per share for
 the fourth quarter was $0.14 before the charges and a negative $0.43 per share
 after the charges, based on 19.5 million average shares outstanding.
 
     Fourth Quarter Charges
     During the fourth quarter, Radiologix recorded a $13.3 million charge that
 increased its provision for uncollectible accounts receivable. Based on an
 extensive review of its accounts receivable and collection experience,
 utilizing reports and analyses not previously available, management believes
 that the estimation process of determining contractual allowances for billed
 charges needed to be revised and that a portion of its accounts receivable
 were no longer collectible.  Following the charge, Radiologix's days sales
 outstanding (DSOs) was 76 days.
     In addition, the Company recorded a $3.7 million pre-tax charge for the
 write-off of a note receivable and expensed approximately $1.8 million of
 transaction related costs incurred during 2000.
 
     Bank Facility Amended
     Radiologix and its bank group have entered into an amendment of the
 Company's $160 million revolving credit facility to convert it into a
 $100 million term loan facility and a $60 million revolving credit facility.
 The new facilities will provide the Company with $36 million and $15 million
 of principal amortization deferral during 2001 and 2002, respectively.  As a
 result of the amendment, the Company will make $12 million in principal
 payments during 2001, and $33 million in principal payments during 2002. The
 facilities mature on November 26, 2003.
 
     Merger Update
     The Company is continuing to work with Saunders Karp and Megrue, L.P.
 ("SKM") in seeking financing for the previously-announced merger of
 Radiologix, Inc. with its affiliate, SKM-RD Acquisition Corp.  The Company's
 stockholders approved the merger transaction on November 21, 2000. The closing
 of the merger is subject to various terms and conditions, including receipt of
 financing, there being no material adverse change in the Company's financial
 performance or condition, and existing stockholders holding between 10 and 20
 percent of the Company's equity immediately following the merger. Given
 present market conditions and the Company's financial performance during the
 fourth quarter of 2000, there can be no assurance that the merger will occur.
 
     Fiscal Year 2001 Guidance
     The Company is departing from its normal practice and giving guidance
 pertaining to the financial metrics listed below.  Since these financial
 measures are for an extended period of time and because we have made several
 assumptions in determining this guidance, a change in the factors that affect
 our business could impact actual results.  For fiscal year 2001, Radiologix
 expects:
 
     *     Same store growth between 8 and 12 percent
     *     Service fee revenue of $265 million to $275 million
     *     EBITDA of $67 million to $70 million
     *     Fully diluted earnings per share of $0.70 to $0.75
     *     Cash earnings per share of $0.82 to $0.87
     *     DSOs between 73 and 77 days
 
     This guidance includes the Company's revision for the estimation of
 contractual allowances for billed charges, but does not reflect new
 acquisitions or material expansion projects.  Cash earnings per share is
 defined as net income plus after tax amortization expense, divided by fully
 diluted average shares outstanding.
     These fiscal year 2000 projections are forward-looking statements that
 relate to future financial results or business expectations and are made
 pursuant to the safe harbor provisions of the Securities Litigation Reform Act
 of 1995.
 
     Radiologix is a leading provider of radiology services in the United
 States through (i) its ownership and operation of technologically advanced,
 multi-modality diagnostic imaging centers, and (ii) its provision of
 administrative, management and other information services to certain radiology
 business partners. Radiologix derives the majority of its revenues from the
 production and management of diagnostic imaging procedures utilizing
 technologies such as x-ray, magnetic resonance imaging ("MRI"), computed
 tomography ("CT"), mammography, ultrasound, nuclear medicine and positron
 emission tomography ("PET"), as well as general radiography and fluoroscopy.
 These images and the radiology reports that are based on the images permit
 ordering physicians to diagnose and manage diseases and injuries more
 accurately and effectively than would be possible without such clinical
 information. Radiologix's 124 owned or operated imaging centers are located in
 18 states and the District of Columbia, with concentrated geographic coverage
 in markets located in California, Florida, Illinois, Kansas, Maryland, New
 York, Pennsylvania, Texas, Virginia and Washington D.C.
 
     This press release contains forward-looking statements that relate to
 future financial results or business expectations and are made pursuant to the
 safe harbor provisions of the Securities Litigation Reform Act of 1995.  Such
 statements are subject to risks and uncertainties that exist in the Company's
 operations and business environment.  Business plans may change as
 circumstances warrant and actual results may differ materially from any
 forward-looking statements, which reflect the management's opinion only as of
 the date hereof.  Such risks and uncertainties include, but are not limited
 to, those associated with the Company's acquisition and expansion strategy;
 integration of the Company's affiliated physician practices and newly-acquired
 imaging centers; the Company's ability to achieve operating efficiencies and
 engage in successful new development efforts; regulatory changes;
 reimbursement trends; governmental policies; and general economic and business
 conditions.  Such risks and uncertainties, as well as additional risk factors
 which could affect the forward-looking statements made in this press release,
 are included in the Company's filings with the Securities and Exchange
 Commission, including its Form 10-K/A dated October 20, 2000.  The Company
 intends to file its Form 10-K for the year-ended December 31, 2000 on April 2,
 2001.  Any forward-looking statement speaks only as of the date on which such
 statement is made.  Radiologix undertakes no obligation to update any
 forward-looking statement or statements to reflect events or circumstances
 after the date on which such statement is made.
 
                                Radiologix, Inc.
                                  (Amex:   RGX)
                               Financial Summary
                     (in thousands, except per share data)
 
                                      (Unaudited)            (Audited)
                                   Three Months Ended   Twelve Months Ended
                                      December 31,          December 31,
                                   2000        1999        2000        1999
 
     Service fee revenue          $63,166     $57,112    $246,687   $199,700
     Salaries and benefits         18,485      14,698      66,567     52,826
     Field supplies                 3,567       3,310      13,265     11,630
     Field rent and lease expenses  7,940       9,585      30,191     18,444
     Other field expenses          14,912       5,572      45,871     32,278
     Bad debt expense              18,409       5,441      34,389     18,838
     Corporate general
      and administrative            4,011       2,988      12,343     11,192
     Depreciation and amortization  5,689       5,455      22,118     18,403
     Interest expense, net          4,934       4,062      18,036     12,357
     Total costs and expenses      77,947      51,111     242,780    175,968
     Equity in earnings
      of investments                1,071       1,100       4,274      3,581
     Minority interests              (213)       (238)       (948)      (910)
     Income tax (expense)/benefit   5,555      (2,814)     (2,900)   (10,346)
     Net income/(loss)            ($8,368)     $4,049      $4,333    $16,057
 
     Basic earnings per share -
      pre charges                   $0.15       $0.21       $0.80      $0.83
     Basic earnings/(loss)
      per share - post charges     ($0.43)      $0.21       $0.22      $0.83
     Weighted average shares -
      basic                        19,507      19,316      19,495     19,305
 
     Diluted earnings per share -
      pre charges                   $0.14       $0.19       $0.75      $0.80
     Diluted earnings/(loss)
      per share - post charges     ($0.43)      $0.19       $0.22      $0.80
     Weighted average shares -
      diluted                      19,507      22,054      19,808     20,692
 
 
     Current assets               $92,284
     Property and equipment, net   57,375
     Intangible assets, net        98,848
     Other assets                  20,129
     Total assets                $268,636
 
     Current liabilities          $55,602
     Long-term debt, net          177,079
     Other liabilities              4,883
     Minority interest              1,353
     Total stockholders' equity    29,719
     Total liabilities and
      stockholders' equity       $268,636
 
      Contact:
      Mark L. Wagar, Chairman and CEO
      214-303-2708
      Sami S. Abbasi, CFO and Executive Vice President
      214-303-2710
      http://www.radiologix.com
 
      Noonan/Russo Communications, Inc.
      212-696-4455
      John Capodanno (investors) x246
      Antoinette Ongg (media) x242
      News@noonanrusso.com
 
 

SOURCE Radiologix, Inc.
    DALLAS, April 2 /PRNewswire/ -- Radiologix, Inc. (Amex:   RGX), the nation's
 leading radiology services company, today announced fourth quarter and
 year-end financial results for the period ended December 31, 2000.
 
     Financial Results
     For the twelve months ended December 31, 2000, Radiologix reported service
 fee revenue of $246.7 million, a 23 percent increase from the $199.7 million
 reported for the twelve months ended December 31, 1999.  Earnings before
 interest, taxes, depreciation and amortization, inclusive of income from joint
 ventures, net ("EBITDA") was $66.2 million before pre-tax fourth quarter
 charges of $18.8 million, and $47.4 million after the charges, for the twelve
 months ended December 31, 2000.  For the comparable period last year, EBITDA
 was $57.2 million. Same-store service fee revenue increased 9 percent during
 2000 compared to the same period last year.  Cash flow from operations for the
 full year was $13.3 million, compared with negative $1.5 million during 1999.
     For the twelve month period ended December 31, 2000, Radiologix reported
 fully diluted earnings per share of $0.75, before the fourth quarter charges,
 based on 22.1 million average shares outstanding.  Full year fully diluted
 earnings per share, after the charges, was $0.22 per share based on
 19.8 million average shares outstanding.  Fully diluted earnings per share for
 the fourth quarter was $0.14 before the charges and a negative $0.43 per share
 after the charges, based on 19.5 million average shares outstanding.
 
     Fourth Quarter Charges
     During the fourth quarter, Radiologix recorded a $13.3 million charge that
 increased its provision for uncollectible accounts receivable. Based on an
 extensive review of its accounts receivable and collection experience,
 utilizing reports and analyses not previously available, management believes
 that the estimation process of determining contractual allowances for billed
 charges needed to be revised and that a portion of its accounts receivable
 were no longer collectible.  Following the charge, Radiologix's days sales
 outstanding (DSOs) was 76 days.
     In addition, the Company recorded a $3.7 million pre-tax charge for the
 write-off of a note receivable and expensed approximately $1.8 million of
 transaction related costs incurred during 2000.
 
     Bank Facility Amended
     Radiologix and its bank group have entered into an amendment of the
 Company's $160 million revolving credit facility to convert it into a
 $100 million term loan facility and a $60 million revolving credit facility.
 The new facilities will provide the Company with $36 million and $15 million
 of principal amortization deferral during 2001 and 2002, respectively.  As a
 result of the amendment, the Company will make $12 million in principal
 payments during 2001, and $33 million in principal payments during 2002. The
 facilities mature on November 26, 2003.
 
     Merger Update
     The Company is continuing to work with Saunders Karp and Megrue, L.P.
 ("SKM") in seeking financing for the previously-announced merger of
 Radiologix, Inc. with its affiliate, SKM-RD Acquisition Corp.  The Company's
 stockholders approved the merger transaction on November 21, 2000. The closing
 of the merger is subject to various terms and conditions, including receipt of
 financing, there being no material adverse change in the Company's financial
 performance or condition, and existing stockholders holding between 10 and 20
 percent of the Company's equity immediately following the merger. Given
 present market conditions and the Company's financial performance during the
 fourth quarter of 2000, there can be no assurance that the merger will occur.
 
     Fiscal Year 2001 Guidance
     The Company is departing from its normal practice and giving guidance
 pertaining to the financial metrics listed below.  Since these financial
 measures are for an extended period of time and because we have made several
 assumptions in determining this guidance, a change in the factors that affect
 our business could impact actual results.  For fiscal year 2001, Radiologix
 expects:
 
     *     Same store growth between 8 and 12 percent
     *     Service fee revenue of $265 million to $275 million
     *     EBITDA of $67 million to $70 million
     *     Fully diluted earnings per share of $0.70 to $0.75
     *     Cash earnings per share of $0.82 to $0.87
     *     DSOs between 73 and 77 days
 
     This guidance includes the Company's revision for the estimation of
 contractual allowances for billed charges, but does not reflect new
 acquisitions or material expansion projects.  Cash earnings per share is
 defined as net income plus after tax amortization expense, divided by fully
 diluted average shares outstanding.
     These fiscal year 2000 projections are forward-looking statements that
 relate to future financial results or business expectations and are made
 pursuant to the safe harbor provisions of the Securities Litigation Reform Act
 of 1995.
 
     Radiologix is a leading provider of radiology services in the United
 States through (i) its ownership and operation of technologically advanced,
 multi-modality diagnostic imaging centers, and (ii) its provision of
 administrative, management and other information services to certain radiology
 business partners. Radiologix derives the majority of its revenues from the
 production and management of diagnostic imaging procedures utilizing
 technologies such as x-ray, magnetic resonance imaging ("MRI"), computed
 tomography ("CT"), mammography, ultrasound, nuclear medicine and positron
 emission tomography ("PET"), as well as general radiography and fluoroscopy.
 These images and the radiology reports that are based on the images permit
 ordering physicians to diagnose and manage diseases and injuries more
 accurately and effectively than would be possible without such clinical
 information. Radiologix's 124 owned or operated imaging centers are located in
 18 states and the District of Columbia, with concentrated geographic coverage
 in markets located in California, Florida, Illinois, Kansas, Maryland, New
 York, Pennsylvania, Texas, Virginia and Washington D.C.
 
     This press release contains forward-looking statements that relate to
 future financial results or business expectations and are made pursuant to the
 safe harbor provisions of the Securities Litigation Reform Act of 1995.  Such
 statements are subject to risks and uncertainties that exist in the Company's
 operations and business environment.  Business plans may change as
 circumstances warrant and actual results may differ materially from any
 forward-looking statements, which reflect the management's opinion only as of
 the date hereof.  Such risks and uncertainties include, but are not limited
 to, those associated with the Company's acquisition and expansion strategy;
 integration of the Company's affiliated physician practices and newly-acquired
 imaging centers; the Company's ability to achieve operating efficiencies and
 engage in successful new development efforts; regulatory changes;
 reimbursement trends; governmental policies; and general economic and business
 conditions.  Such risks and uncertainties, as well as additional risk factors
 which could affect the forward-looking statements made in this press release,
 are included in the Company's filings with the Securities and Exchange
 Commission, including its Form 10-K/A dated October 20, 2000.  The Company
 intends to file its Form 10-K for the year-ended December 31, 2000 on April 2,
 2001.  Any forward-looking statement speaks only as of the date on which such
 statement is made.  Radiologix undertakes no obligation to update any
 forward-looking statement or statements to reflect events or circumstances
 after the date on which such statement is made.
 
                                Radiologix, Inc.
                                  (Amex:   RGX)
                               Financial Summary
                     (in thousands, except per share data)
 
                                      (Unaudited)            (Audited)
                                   Three Months Ended   Twelve Months Ended
                                      December 31,          December 31,
                                   2000        1999        2000        1999
 
     Service fee revenue          $63,166     $57,112    $246,687   $199,700
     Salaries and benefits         18,485      14,698      66,567     52,826
     Field supplies                 3,567       3,310      13,265     11,630
     Field rent and lease expenses  7,940       9,585      30,191     18,444
     Other field expenses          14,912       5,572      45,871     32,278
     Bad debt expense              18,409       5,441      34,389     18,838
     Corporate general
      and administrative            4,011       2,988      12,343     11,192
     Depreciation and amortization  5,689       5,455      22,118     18,403
     Interest expense, net          4,934       4,062      18,036     12,357
     Total costs and expenses      77,947      51,111     242,780    175,968
     Equity in earnings
      of investments                1,071       1,100       4,274      3,581
     Minority interests              (213)       (238)       (948)      (910)
     Income tax (expense)/benefit   5,555      (2,814)     (2,900)   (10,346)
     Net income/(loss)            ($8,368)     $4,049      $4,333    $16,057
 
     Basic earnings per share -
      pre charges                   $0.15       $0.21       $0.80      $0.83
     Basic earnings/(loss)
      per share - post charges     ($0.43)      $0.21       $0.22      $0.83
     Weighted average shares -
      basic                        19,507      19,316      19,495     19,305
 
     Diluted earnings per share -
      pre charges                   $0.14       $0.19       $0.75      $0.80
     Diluted earnings/(loss)
      per share - post charges     ($0.43)      $0.19       $0.22      $0.80
     Weighted average shares -
      diluted                      19,507      22,054      19,808     20,692
 
 
     Current assets               $92,284
     Property and equipment, net   57,375
     Intangible assets, net        98,848
     Other assets                  20,129
     Total assets                $268,636
 
     Current liabilities          $55,602
     Long-term debt, net          177,079
     Other liabilities              4,883
     Minority interest              1,353
     Total stockholders' equity    29,719
     Total liabilities and
      stockholders' equity       $268,636
 
      Contact:
      Mark L. Wagar, Chairman and CEO
      214-303-2708
      Sami S. Abbasi, CFO and Executive Vice President
      214-303-2710
      http://www.radiologix.com
 
      Noonan/Russo Communications, Inc.
      212-696-4455
      John Capodanno (investors) x246
      Antoinette Ongg (media) x242
      News@noonanrusso.com
 
 SOURCE  Radiologix, Inc.