Radiation therapy center operator US Oncology of Houston posted revenues of $665 million in its fiscal 2005 fourth quarter (end-December 31), up 14.5% compared with $580.9 million in the fourth quarter of 2004.
The medical oncology services company also reported net income of $4.5 million for the period, down 73.5% compared with net income of $17 million in the same quarter a year ago.
For the 2005 fiscal year, revenues were $2.5 billion, an 11.5% increase compared with $2.3 billion in the fiscal 2004. Net income slipped to $19.1 million, 60.3% lower than the $48.1 million reported last year.
The firm attributed the drop in net income to increased interest expense and to reductions in Medicare reimbursement relating to its medical oncology services segment. It said the reimbursement decrease was partially offset by the net addition of six radiation oncology facilities in 2005, increased demand in the cancer center services segment, and organic growth in both segments.
The company said it anticipates that earnings before interest, taxes, depreciation, and amortization (EBITDA) for fiscal year 2006 will be approximately $250 million to $260 million.
By AuntMinnie.com staff writers
February 23, 2006
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