Market Overview

Alliance Healthcare Services Reports Results for the First Quarter Ended March 31, 2017

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Alliance HealthCare Services, Inc. (NASDAQ:AIQ) (the "Company,"
"Alliance," "we" or "our"), a leading national provider of outsourced
radiology, oncology and interventional services, announced today the
results for the first quarter ended March 31, 2017.

First Quarter 2017 Highlights

  • The Company reported revenue totaling $129.9 million for the first
    quarter, a $6.2 million or 5.0% increase over the first quarter of
    last year.
  • The Company generated $32.8 million of Adjusted EBITDA (as defined
    below) for the quarter, a $2.4 million or 7.9% increase from the first
    quarter of last year.
  • The Company continued to generate strong cash flow with $19.9 million
    in quarterly operating cash flow.
  • Adjusted Net Income Per Share (as defined below) was $0.17,
    representing an increase of $0.13 per diluted share from the first
    quarter of last year. GAAP net income per share increased by $0.05 per
    diluted share from the first quarter of last year.
  • Alliance Radiology revenue increased by 2.2% to $87.8 million.
  • Alliance Oncology revenue increased 15.2% to $30.0 million for the
    quarter.
  • The Company closed with a total leverage ratio, calculated pursuant to
    its Credit Agreement, of 4.00 to 1.00 as of March 31, 2017.

First Quarter 2017 Financial Results

"Consistent with our expectations for 2017 that we outlined with our
guidance for the year, our team delivered solid growth in both revenue
and Adjusted EBITDA. Most importantly, Adjusted EBITDA increased by
7.9%, and Adjusted Net Income increased approximately threefold, when
compared to the first quarter of 2016. From a balance sheet perspective,
we continue to make progress in reducing our long-term debt, which is
down $7.7 million compared to December 31, 2016," stated Tom Tomlinson,
Chief Executive Officer and President of Alliance Healthcare Services.
"While overall results were solid, we experienced same-store volume
challenges in our Oncology business and in the MRI segment of our
Radiology business. Fortunately, we have seen strengthening as we moved
through the quarter and that improved pace has continued into April. We
remain confident that we will deliver results for 2017 that are
consistent with the guidance we have provided to investors," continued
Mr. Tomlinson.

Revenue for the first quarter of 2017 increased to $129.9 million,
compared to $123.7 million in the first quarter of 2016. This increase
was primarily due to increases in Radiology and Oncology revenue of $2.2
million and $4.0 million, respectively.

Adjusted EBITDA for the first quarter of 2017 increased to $32.8
million, compared to $30.4 million in the first quarter of 2016. The
increase was primarily due to increases in earnings from Radiology and
Oncology, partially offset by Corporate investments as well as a slight
decline in the Interventional segment. Adjusted EBITDA growth in both
Radiology and Oncology was driven by year-over-year same-store volume
growth in PET/CT as well as the addition of new partnerships such as the
Northern Alabama Cancer Care Network. The decline in the Interventional
business was driven by challenges in physician capacity as well as
additional platform investments made to strengthen management and
development capabilities. Corporate / Other Adjusted EBITDA decreased
due to additional investments in international expansion as well as
organization, systems and infrastructure to support expanded workforce,
entities and partnerships.

Net loss for the first quarter totaled $0.6 million, compared to net
loss of $1.2 million in the first quarter of 2016. The $0.6 million
increase in income is largely due to $2.4 million of Adjusted EBITDA
generated by our segments, a $1.5 million decrease in share-based
compensation expense related to a change in control in connection with
Tahoe Investment Group Co., Ltd.'s ("Tahoe's") majority ownership
purchase of common stock from the Company's former shareholders on March
29, 2016 ("Tahoe Transaction"), partially offset by an increase of $1.8
million in depreciation and amortization due to our capital investments,
a $1.2 million increase in interest expense, net and a $0.9 million
decrease in income tax benefit.

GAAP net loss per share on a diluted basis for the first quarter of 2017
was $0.06 per share, compared to GAAP net loss per share of $0.11 in the
first quarter of 2016. Excluding the impact of the expenses related to
the Tahoe Transaction, GAAP net income per share on a diluted basis
would have been $0.09 for the first quarter of 2017, compared to net
loss per share of $0.06 in the first quarter of 2016. Adjusted Net
Income Per Share was $0.17 and $0.04 for the first quarters of 2017 and
2016, respectively. GAAP net income per share on a diluted basis was
impacted by net charges of $0.23 and $0.15 in the first quarters of 2017
and 2016, respectively, which were comprised of: severance and related
costs; restructuring charges; transaction costs; shareholder transaction
costs; deferred financing costs in connection with shareholder
transaction; legal matters expense, net; changes in fair value of
contingent consideration related to acquisitions; other non-cash
(benefits) charges, net; and differences in the GAAP income tax rate
from our historical income tax rate of 42.5%.

Cash flows provided by operating activities totaled $19.9 million for
the first quarter 2017, compared to $22.7 million in the first quarter
of 2016. Total capital expenditures, including cash paid for equipment
purchases and deposits on equipment, totaled $7.3 million for the first
quarter 2017 compared to $22.2 million in the first quarter of 2016.
Growth capital expenditures totaled $3.9 million and maintenance capital
expenditures totaled $3.4 million.

Alliance's gross debt, defined as total long-term debt (including
current maturities but excluding the impact of deferred financing
costs), decreased $7.7 million to $565.5 million at March 31, 2017 from
$573.2 million at December 31, 2016. Cash and cash equivalents were
$21.5 million at March 31, 2017 and $22.2 million at December 31, 2016.

Alliance's total debt, as defined above, divided by the last twelve
months Consolidated Adjusted EBITDA was 4.00x for the twelve month
period ended March 31, 2017, compared to 4.03x for the year ended
December 31, 2016 and 4.22x for the quarter ended March 31, 2016.

Full Year 2017 Guidance

Alliance's full year 2017 guidance ranges are as follows:

(in millions)   Ranges
Revenue $529 - $540
Adjusted EBITDA $135 - $140
Capital expenditures $54 - $70
Maintenance $30 - $35
Growth $24 - $35
Decrease in long-term debt, net of the change in

cash and cash equivalents (before investments in

acquisitions), before growth capital expenditures

or "free cash flow before growth capital expenditures"

$50 - $55
Decrease in long-term debt, net of the change

in cash and cash equivalents (before investments in

acquisitions), after growth capital expenditures

or "free cash flow after growth capital expenditures"

$19 - $26
 

First Quarter 2017 Earnings Conference Call

Investors and all others are invited to listen to a conference call
discussing first quarter 2017. The conference call is scheduled for
Tuesday, May 9, 2017 at 5 p.m. Eastern Time. Additionally, a live
webcast of the call will be available on the Company's website at www.alliancehealthcareservices-us.com.
Click on "About Us," then, "Investor Relations." You will find the Audio
Presentation in the "News & Events" section. A replay of the webcast
will be available on the Company's website until July 7, 2017.

The conference call can be accessed at 877.638.4550 (International
callers can dial 443.961.0596). Interested parties should call at least
five minutes prior to the call to register. A telephone replay will be
available until July 7, 2017. The telephone replay can be accessed by
calling 855.859.2056. The conference call identification number is
10068565.

Definition of Non-GAAP Measures

Total Adjusted EBITDA and Adjusted Net Income Per Share are not measures
of financial performance under generally accepted accounting principles
in the United States ("GAAP").

For a more detailed discussion of these non-GAAP financial measures and
a reconciliation to the most directly comparable GAAP financial measure,
see the section entitled "Non-GAAP Measures" included in the tables
following this release.

About Alliance HealthCare Services

Alliance HealthCare Services (NASDAQ:AIQ) is a leading national
provider of outsourced medical services including radiology, oncology
and interventional. We partner with healthcare providers and hospitals
to provide a full continuum of services from mobile to fixed-site to
comprehensive service line management and joint venture partnerships. We
also operate freestanding clinics and Ambulatory Surgical Centers
("ASCs") that are not owned by hospitals or providers.

As of March 31, 2017, Alliance operated 617 diagnostic radiology,
radiation therapy, and interventional radiology systems, including 103
fixed-site radiology centers across the country, and 35 radiation
therapy centers and SRS facilities. With a strategy of partnering with
hospitals, health systems and physician practices, Alliance provides
quality clinical services for over 1,100 hospitals and other healthcare
partners in 46 states, where approximately 2,450 Alliance Team Members
are committed to providing exceptional patient care and exceeding
customer expectations. For more information, visit www.alliancehealthcareservices-us.com.

Forward-Looking Statements

This press release contains forward-looking statements relating to
future events, including statements related to the Company's long-term
growth strategy and efforts to diversify its business model, the
Company's plans to expand its Interventional Division, both organically
and through one or more acquisitions, the Company's expectations
regarding growth across the Company's divisions, the expansion of its
service footprint and revenue growth, maximizing shareholder value, and
the Company's Full Year 2017 Guidance, including its forecasts of
revenue, Adjusted EBITDA, capital expenditures, and decrease in
long-term debt. 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: changes in the preliminary
financial results and estimates due to the restatement or review of the
Company's financial statements; the nature, timing and amount of any
restatement or other adjustments; the Company's ability to make timely
filings of its required periodic reports under the Securities Exchange
Act of 1934; issues relating to the Company's ability to maintain
effective internal control over financial reporting and disclosure
controls and procedures; the Company's high degree of leverage and its
ability to service its debt; factors affecting the Company's leverage,
including interest rates; the risk that the counterparties to the
Company's interest rate swap agreements fail to satisfy their
obligations under these agreements; the Company's ability to obtain
financing; the effect of operating and financial restrictions in the
Company's debt instruments; the Company's ability to comply with
reporting obligations and other covenants under the Company's debt
instruments, the failure of which could cause the debt to become due;
the accuracy of the Company's estimates regarding its capital
requirements; the effect of intense levels of competition and
overcapacity in the Company's industry; changes in the methods of third
party reimbursements for medical imaging, oncology and interventional
services; fluctuations or unpredictability of the Company's revenues,
including as a result of seasonality; changes in the healthcare
regulatory environment; the Company's ability to keep pace with
technological developments within its industry; the growth or lack
thereof in the market for radiology, oncology, interventional and other
services; the disruptive effect of hurricanes and other natural
disasters; adverse changes in general domestic and worldwide economic
conditions and instability and disruption of credit and equity markets;
difficulties the Company may face in connection with recent, pending or
future acquisitions, including unexpected costs or liabilities resulting
from the acquisitions, diversion of management's attention from the
operation of the Company's business, costs, delays and impediments to
completing the acquisitions, and risks associated with integration of
the acquisitions; and other risks and uncertainties identified in the
Risk Factors section of the Company's Form 10-K for the year ended
December 31, 2016, 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, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except per share amounts)
 
Quarter Ended March 31,
2017   2016
Revenues $ 129,936 $ 123,725
Costs and expenses:
Cost of revenues, excluding depreciation and amortization 75,049 70,914
Selling, general and administrative expenses 23,535 25,265
Transaction costs 162 417
Shareholder transaction costs 869 1,009
Severance and related costs 634 1,716
Depreciation expense 14,073 13,048
Amortization expense 3,275 2,443
Interest expense, net 8,700 7,495
Other income, net   (483 )   (787 )
Total costs and expenses   125,814   121,520
Income before income taxes, earnings from unconsolidated investees,
and noncontrolling

interest

4,122 2,205
Income tax benefit (3 ) (945 )
Earnings from unconsolidated investees   (336 )   (252 )
Net income 4,461 3,402
Less: Net income attributable to noncontrolling interest   (5,075 )   (4,592 )
Net loss attributable to Alliance HealthCare Services, Inc. $ (614 ) $ (1,190 )
 
Comprehensive loss, net of taxes:
Net income 4,461 3,402
Unrealized gain (loss) on hedging transactions, net of taxes 13 (38 )
Reclassification adjustment for losses included in net loss, net of
taxes
  19  
Total comprehensive income, net of taxes 4,493 3,364
Comprehensive income attributable to noncontrolling interest   (5,075 )   (4,592 )
Comprehensive loss attributable to Alliance HealthCare Services, Inc. $ (582 ) $ (1,228 )
 
Loss per common share attributable to Alliance HealthCare Services,
Inc.:
Basic $ (0.06 ) $ (0.11 )
Diluted $ (0.06 ) $ (0.11 )
Weighted average number of shares of common stock and common stock
equivalents:
Basic 10,973 10,779
Diluted 10,973 10,779
 
   
ALLIANCE HEALTHCARE SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
March 31, December 31,
2017 2016
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 21,472 $ 22,241
Accounts receivable, net of allowance for doubtful accounts 74,694 77,496
Prepaid expenses 8,428 9,568
Other current assets   3,917   3,853
Total current assets 108,511 113,158
Plant, property and equipment, net 194,334 204,814
Goodwill 119,130 119,130
Other intangible assets, net 195,699 198,977
Other assets   27,968   23,785
Total assets $ 645,642 $ 659,864
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 27,071 $ 28,185
Accrued compensation and related expenses 19,026 24,895
Accrued interest payable 3,205 3,308
Current portion of long-term debt 19,519 17,298
Current portion of obligations under capital leases 3,397 3,354
Other accrued liabilities   27,656   29,323
Total current liabilities 99,874 106,363
Long-term debt, net of current portion 508,513 515,407
Obligations under capital leases, net of current portion 11,820 12,686
Deferred income taxes 25,732 25,818
Other liabilities   9,646   9,093
Total liabilities 655,585 669,367
 
Stockholders' deficit:
Common stock 110 110
Treasury stock (3,138 ) (3,138 )
Additional paid-in capital 61,734 61,353
Accumulated comprehensive income 42 10
Accumulated deficit   (198,514 )   (197,900 )
Total stockholders' deficit attributable to Alliance HealthCare
Services, Inc.
(139,766 ) (139,565 )
Noncontrolling interest   129,823   130,062
Total stockholders' deficit   (9,943 )   (9,503 )
Total liabilities and stockholders' deficit $ 645,642 $ 659,864
 
 
ALLIANCE HEALTHCARE SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
 
Year Ended March 31,
2017   2016
Operating activities:
Net income $ 4,461 $ 3,402
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for doubtful accounts 502 270
Share-based payment 381 1,402
Depreciation and amortization 17,348 15,491
Amortization of deferred financing costs 2,455 960
Accretion of discount on long-term debt 131 126
Adjustment of derivatives to fair value (7 ) (114 )
Distributions from unconsolidated investees 143 217
Earnings from unconsolidated investees (336 ) (252 )
Deferred income taxes (86 ) (1,438 )
Gain on sale of assets, net (482 ) (296 )
Excess tax benefit from share-based payment arrangements 436
Changes in operating assets and liabilities, net of the effects of
acquisitions:
Accounts receivable 2,300 1,020
Prepaid expenses 1,147 1,102
Other current assets (93 ) 230
Other assets 105 160
Accounts payable (1,538 ) (4,493 )
Accrued compensation and related expenses (5,869 ) 505
Accrued interest payable (103 ) (11 )
Income taxes payable 24 (14 )
Other accrued liabilities   (609 )   4,003
Net cash provided by operating activities   19,874   22,706
Investing activities:
Equipment purchases (839 ) (17,675 )
Increase in deposits on equipment (6,432 ) (4,489 )
Acquisitions, net of cash received (524 ) (1,018 )
Proceeds from sale of assets   571   830
Net cash used in investing activities   (7,224 )   (22,352 )
 
 
ALLIANCE HEALTHCARE SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(Unaudited)
(in thousands)
 
Year Ended March 31,
2017   2016
Financing activities:
Principal payments on equipment debt and capital lease obligations (4,101 ) (3,956 )
Proceeds from equipment debt 2,539 962
Principal payments on term loan facility (1,300 ) (1,300 )
Principal payments on revolving loan facility (9,000 ) (6,000 )
Proceeds from revolving loan facility 4,000 15,000
Payments of debt issuance costs and deferred financing costs (223 ) (24,969 )
Distributions to noncontrolling interest in subsidiaries (5,600 ) (4,149 )
Contributions from noncontrolling interest in subsidiaries 286
Excess tax benefit from share-based payment arrangements (436 )
Issuance of common stock 1
Proceeds from exercise of stock options 485
Settlement of contingent consideration related to acquisitions (20 )
Proceeds from shareholder transaction     28,629
Net cash (used in) provided by financing activities   (13,419 )     4,267
Net (decrease) increase in cash and cash equivalents (769 ) 4,621
Cash and cash equivalents, beginning of period   22,241   38,070
Cash and cash equivalents, end of period $ 21,472 $ 42,691
Supplemental disclosure of cash flow information:
Interest paid $ 6,286 $ 6,448
Income taxes paid (refunded), net 9 (73 )
Supplemental disclosure of non-cash investing and financing
activities:
Changes in equipment purchases in accounts payable and accrued
equipment
22 3,521
Noncontrolling interest assumed in connection with acquisitions 1,716
 

ALLIANCE HEALTHCARE SERVICES, INC.
NON-GAAP MEASURES

Total Adjusted EBITDA and Adjusted Net Income Per Share (the "Non-GAAP
Measures") are not measures of financial performance under generally
accepted accounting principles in the U.S. ("GAAP").

Total Adjusted EBITDA, as defined by the Company's management, is
consistent with the definition in the Company's Credit Agreement and
represents net (loss) income before: income tax (benefit) expense;
interest expense, net; depreciation expense; amortization expense;
share-based payment; severance and related costs; net income
attributable to noncontrolling interest; restructuring charges;
transaction costs; shareholder transaction costs; impairment charges;
legal matters expense (income), net; changes in fair value of contingent
consideration related to acquisitions; and other non-cash (benefits)
charges, net, which include gain on sale of assets, net. The components
used to reconcile net (loss) income to Total Adjusted EBITDA are
consistent with our historical presentation of Total Adjusted EBITDA.

Adjusted Net Income Per Share, as defined by the Company's management,
represents net loss before: severance and related costs; restructuring
charges; transaction costs; shareholder transaction costs; deferred
financing costs in connection with shareholder transaction; legal
matters expenses, net; changes in fair value of contingent consideration
related to acquisitions; other non-cash (benefits) charges, net; and
differences in the GAAP income tax rate compared to our historical
income tax rate. The components used to reconcile net loss per share to
Adjusted Net Income Per Share are consistent with our historical
presentation of Adjusted Net Income Per Share.

Management uses the Non-GAAP Measures, and believes they are useful
measures for investors, for a variety of reasons. Management regularly
communicates the results of its Non-GAAP Measures and management's
interpretation of such results to its board of directors. Management
also compares the Company's results of its Non-GAAP Measures against
internal targets as a key factor in determining cash incentive
compensation for executives and other employees, largely because
management feels that these measures are indicative of how our
radiology, oncology and interventional businesses are performing and are
being managed. The diagnostic imaging and radiation oncology industry
continues to experience significant consolidation. These activities have
led to significant charges to earnings, such as those resulting from
acquisition costs, and to significant variations among companies with
respect to capital structures and cost of capital (which affect interest
expense) and differences in taxation and book depreciation of facilities
and equipment (which affect relative depreciation expense), including
significant differences in the depreciable lives of similar assets among
various companies. In addition, management believes that because of the
variety of equity awards used by companies, the varying methodologies
for determining non-cash share-based compensation expense among
companies and from period to period, and the subjective assumptions
involved in that determination, excluding non-cash share-based
compensation from Adjusted EBITDA enhances company-to-company
comparisons over multiple fiscal periods and enhances the Company's
ability to analyze the performance of its radiology, oncology and
interventional businesses.

In the future, the Company expects that it may incur expenses similar to
the excluded items discussed above. Accordingly, the exclusion of these
and other similar items in the Company's non-GAAP presentation should
not be interpreted as implying that these items are non-recurring,
infrequent or unusual. The Non-GAAP Measures have certain limitations as
analytical financial measures, which management compensates for by
relying on the Company's GAAP results to evaluate its operating
performance and by considering independently the economic effects of the
items that are or are not reflected in the Non-GAAP Measures. Management
also compensates for these limitations by providing GAAP-based
disclosures concerning the excluded items in the Company's financial
disclosures. As a result of these limitations and because the Non-GAAP
Measures may not be directly comparable to similarly titled measures
reported by other companies, however, the Non-GAAP Measures should not
be considered as an alternative to the most directly comparable GAAP
measure, or as an alternative to any other GAAP measure of operating
performance.

The calculation of Adjusted EBITDA is shown below:

Quarter Ended March 31,  

Twelve Months
Ended March 31,

(in thousands) 2017   2016 2017
Net loss attributable to Alliance HealthCare Services, Inc. $ (614 ) $ (1,190 ) $ 1,069
Income tax (benefit) expense (3 ) (945 ) 3,794
Interest expense, net 8,700 7,495 35,711
Depreciation expense 14,073 13,048 55,997
Amortization expense 3,275 2,443 11,393
Share-based payment (included in "Selling, general and administrative

expenses")

381 1,865 1,692
Severance and related costs 634 1,716 2,828
Net income attributable to noncontrolling interest 5,075 4,592 17,468

Restructuring charges

215 231 1,619
Transaction costs 162 417 1,631
Shareholder transaction costs 869 1,009 4,079
Impairment charges 632
Legal matters expense (income), net (included in "Selling, general
and

administrative expenses")

155 (49 )
Changes in fair value of contingent consideration related to
acquisitions

(included in "Other income, net")

(600 ) (4,190 )
Other non-cash (benefits) charges, net (included in "Other income,
net")
  (9 )   136   180
Adjusted EBITDA $ 32,758 $ 30,372 $ 133,854
 

Adjusted EBITDA by segment is shown below:

  Year Ended March 31,
(in thousands) 2017   2016
Adjusted EBITDA:
Radiology $ 29,205 $ 26,443
Oncology 13,808 12,157
Interventional 1,055 1,255
Corporate / Other   (11,310 )   (9,483 )
Total $ 32,758 $ 30,372
 

The leverage ratio calculations as of March 31, 2017 are shown below:

(dollars in thousands)   Consolidated
Total debt $ 565,519
Less: Cash and cash equivalents   (21,472 )
Net debt $ 544,047
Last 12 months' Adjusted EBITDA 133,854
Pro-forma acquisitions in the last 12 month period(1)   7,480
Last 12 months' Consolidated Adjusted EBITDA $ 141,334
Total leverage ratio 4.00 x
Net leverage ratio 3.85 x
(1)   Gives pro-forma effect to acquisitions occurring during the last
twelve months, pursuant to the terms of the Credit Agreement.
 

The reconciliation of loss per diluted share – GAAP to Adjusted Net
income Per Share – non-GAAP is shown below:

  Quarter Ended March 31,
2017   2016
Loss per diluted share – GAAP $ (0.06 ) $ (0.11 )
Reconciling charges (benefits) to arrive at Adjusted Net Income

Per Share – non-GAAP:

Severance and related costs, net of taxes 0.03 0.09
Restructuring charges, net of taxes 0.01 0.01
Transaction costs, net of taxes 0.01 0.02
Shareholder transaction costs, net of taxes 0.05 0.05
Deferred financing costs in connection with shareholder

transaction, net of taxes

0.10
Legal matters expense, net, net of taxes 0.01
Changes in fair value of contingent consideration related to

acquisitions, net of taxes

(0.03 )
Other non-cash (benefits) charges, net, net of taxes 0.01
GAAP income tax rate compared to our historical income

tax rate

  0.03   (0.01 )
Total reconciling charges   0.23   0.15
Adjusted Net Income Per Share – non-GAAP $ 0.17 $ 0.04
 

The reconciliation from net income to Adjusted EBITDA for the 2017
guidance range is shown below (in millions):

  2017 Full Year
Guidance Range
Net income $ 1     $ 2
Income tax benefit (2 )
Interest expense, net; depreciation expense; amortization

expense; share-based payment and other expenses;

net income attributable to noncontrolling interest

  134   140
Adjusted EBITDA $ 135 $ 140
 
 
ALLIANCE HEALTHCARE SERVICES, INC.
SELECTED STATISTICAL INFORMATION
 
Quarter Ended March 31,
2017     2016
MRI:
Average number of total systems 284.9 270.1
Average number of scan-based systems 215.9 218.6
Scans per system per day (scan-based systems) 9.21 9.07
Total number of scan-based MRI scans 132,218 133,234
Revenue per scan $ 311.94 $ 312.00
Scan-based MRI revenue (in thousands) $ 41,245 $ 41,568
Non-scan based MRI revenue (in thousands) $ 8,210 $ 6,002
Total MRI revenue (in thousands) $ 49,455 $ 47,570
PET/CT:
Average number of total systems 114.7 116.8
Average number of scan-based systems 108.1 107.9
Scans per system per day 5.58 5.50
Total number of PET/CT scans 35,264 34,597
Revenue per scan $ 884.52 $ 881.32
Scan-based PET/CT revenue (in thousands) $ 31,191 $ 30,490
Non-scan-based PET/CT revenue (in thousands) $ 989 $ 1,176
Total PET/CT revenue (in thousands) $ 32,180 $ 31,666
Oncology:
Linac treatments 31,024 22,833
Stereotactic radiosurgery patients 743 893
Total Oncology revenue (in thousands) $ 30,033 $ 26,062
Interventional:
Visits 57,891 59,613
Total Interventional revenue (in thousands) $ 11,652 $ 11,663
Revenue breakdown (in thousands):
MRI revenue $ 49,455 $ 47,570
PET/CT revenue 32,180 31,666
Other radiology revenue   6,177   6,403
Radiology revenue 87,812 85,639
Oncology revenue 30,033 26,062
Interventional revenue 11,652 11,663
Corporate / Other   439     361
Total revenues $ 129,936   $ 123,725
 

ALLIANCE HEALTHCARE SERVICES, INC.
SELECTED STATISTICAL
INFORMATION

RADIOLOGY AND ONCOLOGY DIVISION SAME-STORE VOLUME

The Company utilizes same-store volume growth as a historical
statistical measure of the MRI and PET/CT imaging procedure, linear
accelerator ("Linac") treatment and stereotactic radiosurgery ("SRS")
case growth at its customers in a specified period on a year-over-year
basis. Same-store volume growth is calculated by comparing the
cumulative scan, treatment or case volume at all locations in the
current year quarter to the same quarter in the prior year. The group of
customers whose volume is included in the scan, treatment or case volume
totals is only those that received service from Alliance for the full
quarter in each of the comparison periods. A positive percentage
represents growth over the prior year quarter and a negative percentage
represents a decline over the prior year quarter. Alliance measures each
of its major radiology and oncology modalities (MRI, PET/CT, Linac and
SRS) separately.

The Radiology Division same-store volume (decline) growth for the last
four calendar quarters ended March 31, 2017 is as follows:

Same-Store Volume
MRI   PET/CT

2017

   
First quarter (0.7 )% 5.8 %

2016

Fourth quarter (1.2 )% 5.8 %
Third quarter 1.1 % 5.3 %
Second quarter 2.0 % 5.8 %
 

The Oncology Division same-store volume (decline) growth for the last
four calendar quarters ended March 31, 2017 is as follows:

Same-Store Volume
Linac   SRS

2017

   
First quarter (7.6 )% (11.8 )%

2016

Fourth quarter 1.5 % (2.5 )%
Third quarter 5.7 % (4.6 )%
Second quarter (1.1 )% (0.2 )%
 

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