Alliance HealthCare: Revenues up in 2011, but Company Still Must Cut Costs

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Alliance HealthCare Services saw full-year revenues of $493.7 million in 2011, the company announced yesterday, up $14.8 million from annual revenues of $475 million in 2010. For its fourth quarter of 2011, the company posted $3 million in year-over-year revenue gains, up from $117.7 million in Q4 2010 to $120.7 million Q4 2011. Despite these numbers, however, Alliance suffered a ($160.1) million net loss for the 2011 year, nearly five times its full-year 2010 losses of ($32.7) million. This amounted to a loss of ($3.01) per basic share in 2011 versus a loss of ($0.62) per basic share in 2010. Total assets for Alliance in 2011 were $663.1 million against total liabilities of $768 million. In 2010, the company carried $816.2 million in assets versus $802.5 million in liabilities. The company claims that ($2.80) of its 2011 per-share loss is attributable to non-cash impairment charges of $167.8 million over the year, which it attributes to “sustained high unemployment rates, a reported decline in physician office visits, and other conditions in the United States arising from global economic conditions.” In 2010, Alliance had non-cash impairment charges of $42.1 million, or $25.7 million net of tax. In a statement, Alliance Chairman and CEO Paul S. Viviano said the company will continue to focus on growing its imaging and radiation oncology businesses and cutting costs by $20-25 million in the next two years.