Alliance HealthCare Services, Inc. Issued Notice of Below Compliance From NYSE
Alliance HealthCare Services, Inc. (NYSE:AIQ) has been notified by the New York Stock Exchange (NYSE) that it was below compliance with NYSE’s price criteria standard for common stock when average closing price for Alliance HealthCare stock fell below $1.00 per share for the first time this year on June 1, 2012 over a consecutive 30-trading-day period. The last time Alliance HealthCare stock fell below $1.00 per share was in December 2011. The highest price this year was $1.69 per share in March. According to Alliance HealthCare’s quarterly financial report ending in March 31, 2012, revenue was up $2.4 million over the same quarter in 2011. Relatively flat PET-CT volumes and declines in per-scan MRI reimbursement (to $358.55 Q1/2012 from $374.20 Q1/2011) due to competitive pricing were partially offset by increases in radiation oncology revenue attributed to the acquisition of US Radiosurgery, LLC, and revenue from the acquisition of teleradiology company 24/7 Radiology. Administrative expenses increased by 22.1% over last year, and combined with interest expense, which increased by 16.6%, and other expenses, Alliance HealthCare suffered a net loss of $4.8 million, or $(0.09) per share on a diluted basis, in the first quarter of 2012 compared to $2.4 million, or $(0.05) per share on a diluted basis, in the first quarter of 2011. Both Alliance HealthCare share price and average share price (over a consecutive 30-day-trading period) must exceed $1.00 within six months following the non-compliance notice to remain listed on the NYSE. Alliance HealthCare is also currently below compliance with the NYSE’s requirement to maintain a minimum average global market capitalization of no less the $75 million and to have at least three independent directors serving on its Audit Committee. Alliance HealthCare intends to regain compliance with all NYSE listing standards within the applicable time periods required by the NYSE.