zippy1 Posted December 3, 2013 Share Posted December 3, 2013 http://investors.alliancehealthcareservices-us.com/phoenix.zhtml?c=129994&p=irol-newsArticle&ID=1881288&highlight= Sold the operating assets of its subsidiary Radiology 24|7, LLC (“Radiology 24|7”) to ONRAD. Radiology 24|7 generates approximately $15 million of annualized revenue. NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Dec. 2, 2013-- Alliance HealthCare Services, Inc. (NASDAQ:AIQ), a leading national provider of radiology and radiation therapy services, and ONRAD, Inc., a full service radiology provider (“ONRAD”), have agreed to establish a strategic affiliation to develop and support opportunities to further enhance access to the quality services each company provides to its customers. Alliance will designate ONRAD as its exclusive strategic partner for the provision of teleradiology services, and ONRAD will designate Alliance as its exclusive strategic partner for the provision of technical radiology services. Alliance has also sold all of the operating assets of its subsidiary Radiology 24|7, LLC (“Radiology 24|7”) to ONRAD. Radiology 24|7 generates approximately $15 million of annualized revenue. Link to comment Share on other sites More sharing options...
plato1976 Posted December 4, 2013 Share Posted December 4, 2013 I thought the oncology side of the business is growing, so it's a bit confusing to see AIQ is dumping the growing assets http://investors.alliancehealthcareservices-us.com/phoenix.zhtml?c=129994&p=irol-newsArticle&ID=1881288&highlight= Sold the operating assets of its subsidiary Radiology 24|7, LLC (“Radiology 24|7”) to ONRAD. Radiology 24|7 generates approximately $15 million of annualized revenue. NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Dec. 2, 2013-- Alliance HealthCare Services, Inc. (NASDAQ:AIQ), a leading national provider of radiology and radiation therapy services, and ONRAD, Inc., a full service radiology provider (“ONRAD”), have agreed to establish a strategic affiliation to develop and support opportunities to further enhance access to the quality services each company provides to its customers. Alliance will designate ONRAD as its exclusive strategic partner for the provision of teleradiology services, and ONRAD will designate Alliance as its exclusive strategic partner for the provision of technical radiology services. Alliance has also sold all of the operating assets of its subsidiary Radiology 24|7, LLC (“Radiology 24|7”) to ONRAD. Radiology 24|7 generates approximately $15 million of annualized revenue. Link to comment Share on other sites More sharing options...
Packer16 Posted December 4, 2013 Author Share Posted December 4, 2013 What they are selling a radiology reading practice. This is an outsourced service where the scans can be interpreted by radiologists for a fee. This a very competitive and commodity market (alot of competition from India and other EMs). I would be surprised if the unit was profitable given its small size. This I think is non-core to AIQ's business of leasing/consulting for hospitals so selling it is the best way to go. Packer Link to comment Share on other sites More sharing options...
zippy1 Posted December 4, 2013 Share Posted December 4, 2013 What they are selling a radiology reading practice. This is an outsourced service where the scans can be interpreted by radiologists for a fee. This a very competitive and commodity market (alot of competition from India and other EMs). I would be surprised if the unit was profitable given its small size. This I think is non-core to AIQ's business of leasing/consulting for hospitals so selling it is the best way to go. Packer Packer, Thanks a lot. I was wondering how come the revenue is only 15m/year when the revenue of radiation oncology is like >100m/yr. Link to comment Share on other sites More sharing options...
zippy1 Posted December 4, 2013 Share Posted December 4, 2013 http://finance.yahoo.com/news/alliance-healthcare-services-expands-relationship-130000242.html Alliance HealthCare Services, Inc. (AIQ), a leading national provider of radiology and radiation therapy services, announced today that its subsidiary, Alliance Imaging, has expanded its current relationship with Pinehurst Surgical (“Pinehurst”), the largest surgical practice in the Pinehurst, North Carolina area. Under the expanded agreement, Alliance Imaging will take over full operation of Pinehurst’s Imaging Department, including all imaging modalities and services, equipment, staffing, management, and providing reimbursement guidance. As part of the agreement, Alliance Imaging will hire the existing staff to ensure continued excellence in service and care. This expansion of the existing nine-year relationship means Alliance Imaging will provide Pinehurst patients with leading-edge MRI services for the next seven years, in addition to the jointly held MRI services that have been in place since August 2004. Link to comment Share on other sites More sharing options...
tombgrt Posted December 5, 2013 Share Posted December 5, 2013 http://finance.yahoo.com/news/alliance-healthcare-services-expands-relationship-130000242.html Alliance HealthCare Services, Inc. (AIQ), a leading national provider of radiology and radiation therapy services, announced today that its subsidiary, Alliance Imaging, has expanded its current relationship with Pinehurst Surgical (“Pinehurst”), the largest surgical practice in the Pinehurst, North Carolina area. Under the expanded agreement, Alliance Imaging will take over full operation of Pinehurst’s Imaging Department, including all imaging modalities and services, equipment, staffing, management, and providing reimbursement guidance. As part of the agreement, Alliance Imaging will hire the existing staff to ensure continued excellence in service and care. This expansion of the existing nine-year relationship means Alliance Imaging will provide Pinehurst patients with leading-edge MRI services for the next seven years, in addition to the jointly held MRI services that have been in place since August 2004. Is it such a big portion of revenues/ebitda given that it's a news release or is that pretty common even for smaller contracts? The volatility in this stock is crazy, down almost 20% this week. Link to comment Share on other sites More sharing options...
phil_Buffett Posted December 5, 2013 Share Posted December 5, 2013 http://finance.yahoo.com/news/alliance-healthcare-services-expands-relationship-130000242.html Alliance HealthCare Services, Inc. (AIQ), a leading national provider of radiology and radiation therapy services, announced today that its subsidiary, Alliance Imaging, has expanded its current relationship with Pinehurst Surgical (Pinehurst), the largest surgical practice in the Pinehurst, North Carolina area. Under the expanded agreement, Alliance Imaging will take over full operation of Pinehursts Imaging Department, including all imaging modalities and services, equipment, staffing, management, and providing reimbursement guidance. As part of the agreement, Alliance Imaging will hire the existing staff to ensure continued excellence in service and care. This expansion of the existing nine-year relationship means Alliance Imaging will provide Pinehurst patients with leading-edge MRI services for the next seven years, in addition to the jointly held MRI services that have been in place since August 2004. Is it such a big portion of revenues/ebitda given that it's a news release or is that pretty common even for smaller contracts? The volatility in this stock is crazy, down almost 20% this week. absolutely. down over 8% today! why? Link to comment Share on other sites More sharing options...
zippy1 Posted December 5, 2013 Share Posted December 5, 2013 http://finance.yahoo.com/news/alliance-healthcare-services-expands-relationship-130000242.html Alliance HealthCare Services, Inc. (AIQ), a leading national provider of radiology and radiation therapy services, announced today that its subsidiary, Alliance Imaging, has expanded its current relationship with Pinehurst Surgical (“Pinehurst”), the largest surgical practice in the Pinehurst, North Carolina area. Under the expanded agreement, Alliance Imaging will take over full operation of Pinehurst’s Imaging Department, including all imaging modalities and services, equipment, staffing, management, and providing reimbursement guidance. As part of the agreement, Alliance Imaging will hire the existing staff to ensure continued excellence in service and care. This expansion of the existing nine-year relationship means Alliance Imaging will provide Pinehurst patients with leading-edge MRI services for the next seven years, in addition to the jointly held MRI services that have been in place since August 2004. Is it such a big portion of revenues/ebitda given that it's a news release or is that pretty common even for smaller contracts? The volatility in this stock is crazy, down almost 20% this week. absolutely. down over 8% today! why? Really puzzling. ::) Oh, there is an 8-K saying they completed their planned refinancing. Link to comment Share on other sites More sharing options...
phil_Buffett Posted December 6, 2013 Share Posted December 6, 2013 yesterday down 8%, today up 8% ;D ;D Link to comment Share on other sites More sharing options...
hyten1 Posted December 6, 2013 Share Posted December 6, 2013 vol is so low yesterday down 8%, today up 8% ;D ;D Link to comment Share on other sites More sharing options...
gary17 Posted December 9, 2013 Share Posted December 9, 2013 I'm going to guess that because this stock has gone up a lot this year, there's probably some profit selling going on here (it's December) Itchy to take advantage of this now that it's cheaper Link to comment Share on other sites More sharing options...
tombgrt Posted December 9, 2013 Share Posted December 9, 2013 $20.xx. Impressive! Does someone know something we don't or what? Link to comment Share on other sites More sharing options...
LanceSanity Posted December 9, 2013 Share Posted December 9, 2013 Panic selling? Traders tend to use stop losses for when the stock breaks some trend they're watching. I'm not feeling too great now for buying at $24 Link to comment Share on other sites More sharing options...
gary17 Posted December 9, 2013 Share Posted December 9, 2013 Two bad news I could see US budget.... which could affect this co Oak tree getting out... hmmmmm :o I'm going to jump in now... : Link to comment Share on other sites More sharing options...
plato1976 Posted December 9, 2013 Share Posted December 9, 2013 hmm , oak tree pulling out concerns me more than anything else... Two bad news I could see US budget.... which could affect this co Oak tree getting out... hmmmmm :o I'm going to jump in now... : Link to comment Share on other sites More sharing options...
phil_Buffett Posted December 9, 2013 Share Posted December 9, 2013 hmm , oak tree pulling out concerns me more than anything else... Two bad news I could see US budget.... which could affect this co Oak tree getting out... hmmmmm :o I'm going to jump in now... : where do you see that they going out? Link to comment Share on other sites More sharing options...
tombgrt Posted December 9, 2013 Share Posted December 9, 2013 Oak tree getting out... hmmmmm :o Link? Link to comment Share on other sites More sharing options...
gary17 Posted December 9, 2013 Share Posted December 9, 2013 That was my speculation. I'm only guessing that if the price drops this much, there's probably insider news... I have no proof. I don't think so, which is why I just bought some Link to comment Share on other sites More sharing options...
phil_Buffett Posted December 9, 2013 Share Posted December 9, 2013 i also bought more today Link to comment Share on other sites More sharing options...
Packer16 Posted December 9, 2013 Author Share Posted December 9, 2013 Looks like we had some momentum guys on the way up hopefully they sold out. Packer Link to comment Share on other sites More sharing options...
phil_Buffett Posted December 9, 2013 Share Posted December 9, 2013 with a possible 60mio fcf at this end year and a market cap of 220mio iam sleeping very well. Link to comment Share on other sites More sharing options...
yadayada Posted December 9, 2013 Share Posted December 9, 2013 doesnt it worry you that by the time they have their debt paid off, they probably gotta start splurging on cap exp again? I remember a similar situation with HPQ early this year, but at least they didnt have that massive debt. Link to comment Share on other sites More sharing options...
Packer16 Posted December 9, 2013 Author Share Posted December 9, 2013 These guys are leasing equipment and have LT contracts (avg about 8 to 10 yrs) with hospitals. They do not develop MRI's so they are not subject to technological obsolescence as HPQ is. Packer Link to comment Share on other sites More sharing options...
phil_Buffett Posted December 9, 2013 Share Posted December 9, 2013 doesnt it worry you that by the time they have their debt paid off, they probably gotta start splurging on cap exp again? I remember a similar situation with HPQ early this year, but at least they didnt have that massive debt. it doesnt matter for me, because in my opinion the valuation is very low. i think for example if i take 7x fcf and i have a market cap of 420mio or Close to a double. so this matter more to me for now Link to comment Share on other sites More sharing options...
yadayada Posted December 9, 2013 Share Posted December 9, 2013 These guys are leasing equipment and have LT contracts (avg about 8 to 10 yrs) with hospitals. They do not develop MRI's so they are not subject to technological obsolescence as HPQ is. Packer yeah i supose i didnt phrase it well, I meant equipment purchases. I just thought that by the time they pay off debt there isnt much left for investors before they need to start buying new equipment again, because return on capital seems pretty awefull. But I supose 2014 FCF will be close to 100 mill, and then the debt is paid off quickly. And still a good amount is left to buy back stock or something. Link to comment Share on other sites More sharing options...
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