Strong growth in oncology revenue propelled Alliance HealthCare Services to a nearly 10% increase in revenues for its second quarter.
For the period (end-June 30), the provider of radiology, radiation therapy, and interventional services had revenues of $137.3 million, up 9.5% compared with the $125.3 million reported in the second quarter of 2016. Oncology revenues grew 31.4% to reach $33.9 million, while interventional revenues climbed 21.3% to $13.8 million. Radiology revenues grew 1.8% to $89.1 million, according to the company.
Alliance had adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $38.1 million, up from $34.4 million in the same period a year ago. Earnings growth was primarily due to gains in its radiology, oncology, and interventional units, partially offset by corporate investments, the company said.
Alliance had a net loss under generally accepted accounting principles (GAAP) of $300,000, compared with net income of $2.5 million in the second quarter of 2016. This decrease was largely due to $3.8 million in incremental adjusted EBITDA generated by its operating segments that were offset by a $1 million increase in shareholder transaction costs, a noncash remeasurement gain of $3 million recognized in the second quarter of 2016, a $1.1 million impairment charged primarily related to historical IT investments, and a $800,000 increase in acquisition-related amortization expense.
