There were mixed results from three outpatient diagnostic imaging companies last week as Health Images, Alliance Imaging and MedAlliance released their second-quarter earnings.
Atlanta-based Health Images, which operates 43 diagnostic imaging centers worldwide, said its net income for the second quarter ended June 30 more than doubled to $1.4 million, or 12 cents per share, compared with $668,700, or 6 cents per share, during the second quarter of 1993. Revenues climbed 6.3% to $20 million.
For the six months, Health Images' net income rose 34% to $2.3 million, or 20 cents per share, compared with $1.7 million, or 14 cents per share, during the year-ago period. Revenues climbed 5.2% to $38.6 million.
Health Images' president and chief executive officer, W.A. "Bill" Wilson, attributed the results to increased revenues from centers that it has been operating for some time, as opposed to newly acquired facilities. Those revenues rose 9% to $36 million during the first six months of 1994.
In addition, the company repaid the final $1 million outstanding from its short-term line of credit.
On the other side of the coin was Orange, Calif.-based Alliance Imaging, which reported a net loss of $812,000, or 12 cents per share, during the second quarter ended June 30, compared with a net loss of $288,000, or 4 cents per share, in the year-ago period. Revenues dropped 6% to $14.5 million.
For the six months, Alliance reported a net loss of $2.1 million, or 30 cents per share, compared with a net loss of $739,000, or 10 cents per share, during the first half of 1993. Revenues dropped 6% to $28.6 million.
Alliance's disappointing earnings were the result of decreased prices stemming from "intense competition in the diagnostic imaging industry," said Richard Zehner, chairman, president and CEO of the company.
"Our cost-reduction efforts have somewhat mitigated the effect of declines in revenue, but the interest expense associated with debt incurred in a leveraged buyout of the company several years ago continues to place a large burden on operating results," Mr. Zehner said.
MedAlliance-formally known as ImageAmerica-said its net income for the second quarter ended June 30 dropped 30% to $852,000, or 7 cents per share, compared with $1.3 million, or 13 cents per share, during the year-ago period. Revenues rose 2.3% to $20.5 million.
For the six months, MedAlliance's net income fell 50% to $1.4 million, or 12 cents per share, compared with $2.7 million, or 26 cents per share, in the year-ago period. Revenues increased 4% to $41 million.
The company's name change is symbolic of its repositioning within the outpatient imaging market, said Patrick Ryan, MedAlliance's president and CEO.
"We believe this new name better reflects the strategic repositioning of the company as we pursue a two-tiered strategy which includes the new initiative of acquiring the assets of physician group practices and the continued strengthening of our imaging business through the development of hospital joint ventures," Mr. Ryan said.
Brentwood, Tenn.-based MedAlliance operates 16 freestanding imaging centers nationwide.