Alliance HealthCare Services Announces Reverse Split of Common Stock
Alliance HealthCare Services, Inc. (NYSE: AIQ) (the “Company” or “Alliance”), a leading national provider of outpatient diagnostic imaging and radiation therapy services, today announced a 1-for-5 reverse split of its common stock. The reverse stock split will be effective December 26th at 5:01 p.m. Eastern Time and Alliance's common stock will begin trading on the NYSE on a split-adjusted basis when the market opens on Thursday, December 27th, 2012.
Larry C. Buckelew, Chairman of the Board and interim Chief Executive Officer, explained, “Thanks to the ongoing hard work from the entire Alliance team, we are pushing our strategic growth initiatives forward. Since undertaking the interim CEO role in June, we have worked together to implement substantial changes. The continued cost savings improvements and focus on efficiency have translated to improving quarterly results. We continue to strategically enhance our long-term value proposition and our strong cash generation will allow us to make smart investments in our business. We have proactively addressed our debt obligation and the increased financial flexibility this affords enhances our financial profile. We believe the market hasn't fully recognized these improvements and that our stock remains significantly undervalued. This reverse stock split is the right decision at this time and should better position Alliance in the capital markets. We are in the process of working to transfer our listing to the NASDAQ Global Market, and believe that a higher share price will better enable us to do so in the near term while making our shares more attractive to some institutional investors."
At the effective time of the reverse stock split, every five shares of Alliance's issued and outstanding common stock will be automatically converted into one issued and outstanding share of common stock, without any change in the par value per share. All fractional shares will be rounded up to the nearest whole share.
The reverse stock split will reduce the number of shares of Alliance's common stock outstanding from approximately 52.9 million to approximately 10.6 million. Proportional adjustments will be made to Alliance's stock options and equity-compensation plans. The reverse stock split will have no effect on the Company's authorized shares of preferred stock.
The Company's common stock will continue to trade on the NYSE under the symbol “AIQ” and will continue to be subject to the indicator .BC until such time as the Company has regained compliance with all applicable continued listing standards.
When the reverse split takes effect, shareholders holding certificated shares or shares through a brokerage account will have their shares automatically adjusted to reflect the reverse stock split. The issuance of new stock certificates will not be required, although shareholders may obtain a new certificate from their broker or the Company's transfer agent, if they so choose.
About Alliance HealthCare Services
Alliance HealthCare Services is a leading national provider of advanced outpatient diagnostic imaging and radiation therapy services based upon annual revenue and number of systems deployed. Alliance focuses on MRI, PET/CT and CT through its Imaging division and radiation therapy through its Oncology division. With more than 1,900 team members committed to providing exceptional patient care and exceeding customer expectations, Alliance provides quality clinical services for over 1,000 hospitals and other healthcare partners in 46 states. Alliance operates 499 diagnostic imaging and radiation therapy systems. The Company is the nation's largest provider of advanced diagnostic mobile imaging services and one of the leading operators of fixed-site imaging centers, with 130 locations across the country. Alliance also operates 30 radiation therapy centers, including 15 dedicated stereotactic radiosurgery facilities, many of which are operated in conjunction with local community hospital partners, providing treatment and care for cancer patients. With 15 stereotactic radiosurgery facilities in operation, Alliance is among the leading providers of stereotactic radiosurgery nationwide.
This press release contains forward-looking statements relating to future events, including statements related to the Company's planned reverse split of its common stock, including the expected effective date and the expected first date of trading on a post-split basis, as well as statements related to the Company's ability to transfer to the NASDAQ Global Market or regain compliance with NYSE listing standards. In this context, forward-looking statements often address the Company's expected future business and financial results and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks” or “will.” Forward-looking statements by their nature address matters that are uncertain and subject to risks. Such uncertainties and risks include the risks and uncertainties identified in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission (the “SEC”), as may be modified or supplemented by our subsequent filings with the SEC. These uncertainties may cause actual future results or outcomes to differ materially from those expressed in the Company's forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake to update its forward-looking statements except as required under the federal securities laws.
Alliance HealthCare Services
Executive Vice President
Chief Financial Officer