Diagnostic imaging center operator Radiologix continued to increase revenue and trim losses in its fiscal 2005 fourth quarter and full year.
For the fourth quarter (end-December 31), service fee revenue was $62.1 million, an uptick compared with $55.4 million posted for the fourth quarter of 2004. Radiologix incurred a net loss of $3.1 million, compared with a net loss of $21.7 million for the same period in 2004.
For the 2005 fiscal year, service fee revenue was $251.4 million, compared with $251.3 million for the 2004 fiscal year. Radiologix incurred a net loss of $1.5 million for 2005, a sharp turnaround compared with the net loss of $31.9 million posted for the 2004 fiscal year.
In addition, the firm restated its 2004 fiscal-year results due to the accounting treatment of a PresGar equipment lease contract. Radiologix said it determined that the $13.9 million for the contract should not have been capitalized as an intangible asset but should have been expensed as a lease termination.
The effect of the restatement to the financial statements is as follows: in 2004, operating expenses increase by $13.9 million, depreciation and amortization expense decreases by $0.1 million, and net loss increases by $13.8 million.
By AuntMinnie.com staff writers
March 9, 2006
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