Alliance Healthcare Services, Inc. (NASDAQ:AIQ) Q4 2014 Earnings Conference Call - Final Transcript
Mar 16, 2015 • 05:00 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Alliance HealthCare Services Fourth Quarter and Full Year 2014 Earnings Call.
My name is Rick Johns, and I am the Company's Executive Vice President and General Counsel. This conference is being recorded for rebroadcast and all lines have been placed on mute. As is customary, we will open the conference up for questions and answers after the presentation.
This conference call will contain forward-looking statements, which are based on the company's current expectations, forecasts and assumptions, including statements related to our business strategy, growth opportunities, the impact of the Affordable Care Act, the 2014 Medicare fee schedule, 2015 guidance, expected capital expenditures for 2015, expected cost reductions and the company's effective tax rate.
As most of you know, forward-looking statements involve risks and uncertainties, which could cause actual outcomes and results to differ materially from the company's expectations, forecasts and assumptions. These risks and uncertainties are described in the 2014 guidance release under the heading Forward-Looking Statements, as well as in the Risk Factors section of the company's Annual Report on Form 10-K for the year ended, December 31, 2013, as such report may be modified.
The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Financial and other statistical information presented on this conference call or information required by the SEC's Regulation G may be accessed through the Investor Relations Section of the company's website. Please visit our website for replay information of this call.
On today's call, our CEO, Tom Tomlinson, will provide a brief overview of our business, fourth quarter and full year 2014 results, the progress of our strategic transformation and growth strategy initiatives and our priorities for 2015. Our Chief Financial Officer, Howard Aihara, will follow with the details of the fourth quarter and full year 2014 results and our 2015 guidance.
With that, I will now turn the conference over to Tom. Tom, please go ahead.
Thanks, Rick, and good afternoon, everyone.
Welcome to our call today. During the call, we'll address Alliance's fourth quarter and full year 2014 earnings, and our financial and strategic outlook for 2015. Thanks for joining us today.
For the fourth quarter of 2014, we delivered organic revenue growth for the third consecutive quarter. Revenues of approximately $110 million are up 148 basis points over the same quarter last year after adjusting for the sale of our Professional Radiology Services business.
Earnings per share increased $0.55 from 2013 with the company showing positive net income of $1.9 million versus a loss of approximately $4 million in the prior year. Our fourth quarter adjusted EBITDA results of $31.2 million were lower than our initial expectations for the quarter.
This was driven primarily by a renewal of certain contracts in the PET/CT business that previously were priced above current market conditions. We elected to price them at market levels to retain the business. These price changes began in