Radiologix, Inc. Purchases and Retires Exclusive MRI Equipment Financing Contract
November 02 2004 - 4:19PM
PR Newswire (US)
Radiologix, Inc. Purchases and Retires Exclusive MRI Equipment
Financing Contract Transaction Will Be Accretive to Earnings
DALLAS, Nov. 2 /PRNewswire-FirstCall/ -- Radiologix, Inc.
(AMEX:RGX), a leading national provider of diagnostic imaging
services, today announced a definitive agreement to purchase and
retire a contract with an affiliate of PresGar Medical Imaging,
Inc. ("PresGar") that provides PresGar with an exclusive and
perpetual right to lease magnetic resonance imaging ("MRI")
equipment to a Radiologix subsidiary in Rochester, NY. Radiologix
also is assuming debt and lease obligations for MRI equipment
existing under this contract. Radiologix will pay PresGar $15.2
million in cash and will assume $300,000 of debt to purchase and
retire the contract. Radiologix also will assume certain operating
leases on MRI equipment. The obligations under this contract, along
with the related imaging equipment, were assumed by Radiologix with
the acquisition of its Rochester subsidiary in 1997. Lease payments
under this contract are based on, and vary with, usage of the
equipment. Radiologix anticipates that as a result of this
transaction, its net operating expenses, excluding depreciation and
interest, could decrease by approximately $4.5 million annually,
and that earnings per basic share could increase by approximately
$0.07 annually, beginning November 1, 2004. Radiologix believes
that it will realize incremental savings in field rent and lease
expense as volume increases on this equipment. The purchase of this
contract and equipment does not affect Radiologix's service fee
revenue. The definitive agreement for this transaction has an
effective date of October 31, 2004. Consummation of this
transaction is subject to satisfaction of due diligence and other
customary pre-closing conditions. 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 94 diagnostic imaging centers located
in 13 states as of June 30, 2004. Forward-Looking Statements This
press release contains forward-looking statements that relate to
future financial results or business expectations and are made
pursuant to Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, as amended. Such
statements give our current expectations or forecasts of future
events; they do not relate strictly to historical or current facts.
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 transactions and
events described in this press release will happen 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 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: * a decline in patient referrals; * shifts in modality
mix or the volume of procedures performed; * the availability of
technologists and other personnel; * severe or adverse weather
condition in our markets; * changes in the rates or methods of
third-party reimbursement for diagnostic imaging services; * the
loss of a high percentage of radiologists operating in our
contracted radiology practices; * the termination of our contracts
with radiology practices; * reduced operating margins due to our
managed care contracts and capitated fee arrangements; * the
availability of additional capital to fund capital expenditure
requirements; * burdensome lawsuits against our contracted
radiology practices and us; * any failure by us 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
substantial indebtedness, debt service requirements and liquidity
constraints; * economic, demographic, business and other conditions
in our markets; * the highly competitive nature of the healthcare
business; and * risks related to our senior notes and healthcare
securities generally. A more comprehensive list of such factors is
set forth in the Company's Annual Report on Form 10-K, as amended,
for the year ended December 31, 2003, and our other filings with
the Securities and Exchange Commission. We cannot guarantee that
any forward-looking statements will be realized, although we
believe we have been prudent in our plans and assumptions.
Achievement of future results is subject to risks, uncertainties
and potentially inaccurate assumptions. Should known or unknown
risks or uncertainties materialize, or should underlying
assumptions prove inaccurate, actual results could vary materially
from past results and those anticipated, estimated or projected.
Investors should bear this in mind as they consider forward-looking
statements. 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 2, 2004. Radiologix undertakes no
obligation to update any forward- looking statement or statements
to reflect new events or circumstances or future developments.
DATASOURCE: Radiologix, Inc. CONTACT: Paul R. Streiber, Investor
Relations of Radiologix, Inc., +1-214-303-2702, or Web site:
http://www.radiologix.com/
Copyright
Radiologix (AMEX:RGX)
Historical Stock Chart
From Jul 2024 to Aug 2024
Radiologix (AMEX:RGX)
Historical Stock Chart
From Aug 2023 to Aug 2024