3SOF

Profile:  


Primedex Health Systems Inc.
1510 Cotner Avenue
Los Angeles, CA 90025
United States - Map
Phone: 310-478-7808
Fax: 310-478-5810
Web Site: http://www.radnetonline.com

DETAILS  
Index Membership: N/A
Sector: Healthcare
Industry: Medical Practitioners
Full Time Employees: 903


BUSINESS SUMMARY  
Primedex Health Systems, Inc. operates outpatient diagnostic imaging facilities in California. It offers various combinations of magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, X-ray, and fluoroscopy. As of October 31, 2005, it operated a group of regional networks comprised of 57 fixed-site, freestanding outpatient diagnostic imaging facilities in California. Primedex Health Systems, Inc. was incorporated in 1985 and is headquartered in Los Angeles, California.

Press Release Source: Primedex Health Systems, Inc.


Primedex Health Systems Reports Record Second Quarter 2006 Results
Wednesday June 14, 7:07 pm ET


LOS ANGELES--(BUSINESS WIRE)--June 14, 2006--Primedex Health Systems, Inc. (OTCBB:PMDX - News):
For the first six months of its fiscal 2006, revenue increases 12.7% and EBITDA increases 16.2%
Company reaches operational profitability in second quarter, after one-time adjustment related to its recent financing
Company reports second quarter revenue and EBITDA of $39.6 million and $8.8 million, respectively
Primedex Health Systems, Inc. (OTCBB:PMDX - News), the California market leader in providing high-quality, cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers, today reported financial results for its second quarter and six months ended April 30, 2006.

Revenue for the second quarter was $39.6 million, an increase of 12.5% from $35.2 million recorded in the second quarter of fiscal 2005, primarily driven by new capitation contracts, improved performance from existing capitation contracts and contributions from existing and expanded imaging centers. For the second quarter of fiscal 2006, EBITDA (which Primedex defines as earnings before net interest expense, income taxes, depreciation and amortization, each from continuing operations and adjusted for non-recurring items such as losses or gains on the disposal of equipment) was $8.8 million compared to $8.1 million in the same period last year, an increase of 8.0%.

For the second quarter, after adjusting for a one-time expense in connection with debt extinguishment and other expenses resulting from the Company's recent financing which closed on March 9, 2006, Primedex achieved net income of $0.2 million or $0.01 per share. Without these adjustments, net loss for the second quarter was $2.7 million, or $(0.07) per share, compared to a net loss of $0.6 million, or $(0.02) per share, reported in the same period last year.

For the six months ended April 30, 2006, the Company reported net revenue of $78.1 million and EBITDA of $16.8 million, as compared to net revenue of $69.3 million and EBITDA of $14.5 million for the same fiscal period last year. This is an increase in net revenue and EBITDA for the six-month period of 12.7% and 16.2%, respectively.

For the six months ended April 30, 2006, after adjusting for one-time expense in connection with debt extinguishment and other expenses resulting from the Company's recent financing which closed on March 9, 2006, Primedex had a net loss of $0.3 million or $(0.01) per share. Without these adjustments, net loss for the first six months was $3.2 million, or $(0.08) per share, compared to a net loss of $2.8 million, or $(0.07) per share, reported in the comparable period last year.

Net cash provided by operating activities was $6.3 million the first six months of fiscal 2006 as compared to $3.0 million in the same period last year. As of April 30, 2006, the Company reduced its working capital deficit to $4.3 million, compared to a deficit of $143.4 million at October 31, 2005. The $143.4 million working capital deficit at October 31, 2005 was primarily due to the classification of approximately $109 million in notes and capital lease obligations as current liabilities expected to be refinanced. During the second quarter of its fiscal 2006, Primedex completed the issuance of a $161 million senior secured credit facility which was used to refinance all of the Company's existing indebtedness, except for $16.1 million of outstanding subordinated debentures and approximately $5 million of capital lease obligations.

"We are pleased with our progress in the first half of fiscal 2006 as we continue to drive revenue growth and operating efficiencies at our existing facilities through a focused approach on increasing same store sales," said Dr. Howard Berger, President and Chief Executive Officer. "Additionally, we are leveraging our many years of experience and broad geographic footprint of California centers to expand and manage our capitation business, which remains an important component of our strategy. Capitation revenue increased 18.2% in the first two quarters of fiscal 2006, when compared to the same period in the previous year, and currently accounts for 28% of our net revenue."

"We believe the changing reimbursement environment for diagnostic imaging will encourage industry consolidation. The establishment of our $161 million senior secured credit facility in March of 2006 and our continued improvement in operating performance will enable our company to capitalize on these future consolidation opportunities," said Mark Stolper, Chief Financial Officer.

Regulation G: GAAP and Non-GAAP Financial Information

This release contains certain financial information not derived in accordance with GAAP. Primedex uses both GAAP and non-GAAP metrics to measure its financial results. The Company believes that, in addition to GAAP metrics, these non-GAAP metrics assist Primedex in measuring its cash-based performance. Primedex believes this information is useful to investors and other interested parties because it removes unusual and nonrecurring charges that occur in the affected period and provides a basis for measuring the Company's financial condition against other quarters. Such information should not be considered as a substitute for any measures calculated in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliation of this information to the most comparable GAAP measures is included in this release in the tables below.

About Primedex Health Systems, Inc.

Primedex Health Systems, Inc., is the California market leader in providing high-quality, cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers. As of April 30, 2006, Primedex owned and operated 62 facilities. For its fiscal year ended October 31, 2005, Primedex and its subsidiaries performed 958,414 diagnostic imaging procedures. At October 31, 2005, together with Beverly Radiology Medical Group, the medical group that provides medical services to the majority of the Company's locations, the Company had a total of 951 full-time and 340 part-time and per-diem employees.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning Primedex Heath Systems' ability to continue to growth the business by generating patient referrals and contracts with radiology practices, recruiting and retaining technologists, and receiving third-party reimbursement for diagnostic imaging services, as well as Primedex's financial guidance, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause Primedex's actual results to differ materially from the statements contained herein. Primedex's second quarter ended April 30, 2006 financial performance, as discussed in this release, is preliminary and unaudited, and subject to adjustment. Estimates for the third quarter and fiscal year 2006 financial performance are subject to a number of assumptions regarding the future operation of our business. Further information on potential risk factors that could affect Primedex's business and its financial results are detailed in its most recent 10-K and 10-Q as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. Primedex undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

Note: EBITDA is defined as earnings before interest, taxes, depreciation and amortization, each from continuing operations, and is reconciled to its nearest comparable GAAP financial measure. EBITDA is a non-GAAP financial measure used as analytical indicator by Primedex management and the healthcare industry to assess business performance, and as a measure of leverage capacity and ability to service debt. EBITDA should not be considered a measure of financial performance under GAAP, and the items excluded from EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As EBITDA is not a measurement determined in accordance with GAAP and are therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.

Contact:
Primedex Health Systems, Inc.
Mark Stolper, 310-445-2800
or
Integrated Corporate Relations, Inc.
John Mills, 310-954-1105
[email protected]

--------------------------------------------------------------------------------
Source: Primedex Health Systems, Inc.

Looks like traders believe in this. 
Stock continued to go up, while market breaks down.
It's got a long way to fall back to its 52 week low, but with a new 400 mil finance deal with GE, at least I'm in good company. Set aTight stop at $1.68
Risky trade, but I do like the sector and the volume.

Volume: 2,472,369
Avg Vol (3m): 317,103

Float (mil) 34.40....Shares Outstanding (mil) 41.91

Support @ $1.72...1.60...1.52
Resistance @ $1.95...2.04

Technicals
Record Volume
Record Price High
Percentage Gainer

Last Price Quote is:
6.69%above 13-day EMA
24.35%above 50-day EMA
RS Rating: N/A 

Fundamentals
Key Data:
Market Cap (M): $78.37 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Business Overview
BRIEF: For the six months ended 30 April 2006, Primedex Health Systems Inc.'s revenues rose 13% to $78.1M. Net loss rose 14% to $3.2M. Revenues reflect increased capitation revenues attributed to increases in reimbursement coupled with improved collections of co-payments and higher insurance revenues. Higher loss reflects increased operating expenses, higher provision for bad debts and the presence of loss on debt extinguishment. http://www.radnetonline.com/index.php

CHICAGO, July 7 (Reuters) - Primedex Health Systems Inc (PMDX,Trade) said on Friday it would buy imaging center operator Radiologic Inc. (RGX,Trade) in a cash and stock transaction valued at about $208 million, including net debt.

Primedex, which runs diagnostic imaging centers in California, said the deal would create the nation's largest owner and operator of fixed-site diagnostic imaging centers in the United States, with 132 locations.

It comes as radiology centers face stiff cuts in reimbursement as part of the Deficit Reduction Act of 2005, which will reduce retail reimbursement for Medicare diagnostic imaging scans starting Jan. 1.

Those cuts are expected have a $16.8 million impact for the combined companies in 2007.

Under terms of the deal, Radiologic shareholders would receive $1.84 in cash for each Radiologic share, plus one share of Primedex common stock for a total consideration of $3.59.

This represents a 60 percent premium to Thursday's closing price of $2.25 on the American Stock Exchange.

After the acquisition, Primedex would have 80 centers in California, 32 centers in Maryland, 12 centers in New York and 8 centers in other states, including Florida, Kansas, Colorado and Minnesota.

Primedex said the boards of both companies have unanimously approved the proposed transaction and it expects the deal to close in the second half of 2006.

In conjunction with the deal, Primedex plans to change its corporate name to Radnet Inc.

General Electric's (GE,Trade) GE Healthcare Financial Services has provided a commitment for $405 million of senior debt financing, which includes a $45 million revolving credit facility for working capital and general corporate purposes that will be substantially undrawn and available to Primedex at the close of the transaction.

The remaining $360 million will fund the cash purchase price of Radiologic and refinance substantially all the existing debt of Primedex and Radiologic. GE Healthcare is one of the world's largest makers of imaging equipment.

(Additional reporting by Euan Rocha in New York)

Count me in both PMDX and RGX

WASHINGTON, Aug 22 (Reuters) - U.S. antitrust authorities said on Tuesday they approved plans by Primedex Health Systems Inc. (PMDX.OB: Quote, Profile, Research) to buy imaging center operator Radiologix Inc.(RGX.A: Quote, Profile, Research).

Officials have completed their investigation of the deal without taking any action, the Federal Trade Commission said in a notice.

Los Angeles-based Primedex, which runs diagnostic imaging centers in California, has said the deal would create the nation's largest owner and operator of fixed-site diagnostic imaging centers in the United States, with 132 locations.

The cash and stock transaction was valued at about $208 million, including assumed debt, when Primedex announced the deal on July 7.

Breakout......   A Sleeper of a company, waking up!
Good solid Company, Reported record profits and revenue last fiscal Yr.
Second quarter in a row of profitability, and I believe it will be sustained.
Do own DD!  I am long on this one! blessings....

52wk Range: 0.25 - 2.10
Volume: 1,648,023
Avg Vol (3m): 244,558

Technicals
Record Price High
Record Price Break Out
Percentage Gainer

Last Price Quote is:
28.20%above 13-day EMA
40.34%above 50-day EMA
RS Rating: N/A 

Fundamentals
Key Data:
Market Cap (M): $83.82 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Looking good..... 

52wk Range: 0.25 - 2.64

Volume: 657,339
Avg Vol (3m): 280,760

Technicals
Record Price High
Percentage Gainer

Last Price Quote is:
18.91%above 13-day EMA
43.74%above 50-day EMA
RS Rating: N/A 

Fundamentals
Key Data:
Market Cap (M): $110.22 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

SeekingAlpha
Wait for a Better Entry Point Into Primedex
Tuesday September 19, 10:09 pm ET


Microcap Speculator submits: Primedex provides diagnostic imaging services (PET, MRI, Open MRI, ultrasound, x-ray and CT scanning) through a network of fully-owned and operated outpatient imaging centers. PMDX operates clusters of centers within specific regions and cuts deals with HMO's, PPO's and other managed care providers. These deals ensure Primedex centers a steady flow of customers, even if they do pay lower negotiated rates.
ADVERTISEMENT


Primedex intends to roll-up this fragmented industry. Last quarter it acquired four more imaging centers, but the big leap will come next year when it closes a deal to acquire publicly-traded Radiologix (AMEX: RGX - News). The deal will be financed with a $405 million senior debt facility provided by GE Healthcare Financial Services, a division of General Electric (NYSE: GE - News). GE also manufactures a wide array of medical imaging devices and that this financing may be a strategic move for GE aimed to ensure a leading position for GE's medical imaging line.

Primedex is not yet profitable, but I expect investors will focus more on EBITDA growth and ratios as the company grows. For the last nine months, Primedex posted EBITDA of over $25 million, but lost $1.3 million after charges relating to debt extinguishment and the GE financing. Revenue for last quarter was over $40 million, giving PMDX a reasonable 0.65 price-to-sales ratio at current run rates.

My take: I like the Primedex story, but think that there will be a better entry point. The stock looks ripe for a pullback after its recent run. The reader who alterted me to Primedex first mentioned this stock to me at around $1.50, which would have been a great entry point.

PMDX 1-yr Chart

52wk Range: 0.25 - 2.70

Volume: 210,076
Avg Vol (3m): 299,272

Technicals
Close Below the 13-day EMA

Last Price Quote is:
-1.96%below 13-day EMA
16.78%above 50-day EMA
RS Rating: N/A 

Fundamentals
Key Data:
Market Cap (M): $104.35 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

 
Technicals
Close Above the 13-day EMA

Last Price Quote is:
6.63%above 13-day EMA
25.41%above 50-day EMA

SeekingAlpha
Primedex/Radiologix Combo An Attractive Takeover Target
Monday September 25, 6:02 am ET


Ant & Sons submits: Back in July, Primedex Health Systems Inc. bought imaging center operator Radiologix Inc. (AMEX: RGX - News) in a cash and stock transaction valued at about $208 million, including assumed debt. The deal would create the nation's largest owner and operator of fixed-site diagnostic imaging centers in the US.


The deal comes at a time when centers are facing stiff cuts in reimbursement as part of the Deficit Reduction Act of 2005 which will reduce reimbursement for Medicare diagnostic imaging scans starting early next year. These cuts will reduce revenue by approximately $17 million for the combined companies next year. Under this deal, Radiologix shareholders would receive $1.84 cash and one share of Primedex common stock for each Radiologix share. The transaction is expected to close later this year.

The deal will be financed with a senior debt facility provided by GE (NYSE: GE - News). Primedex is currently not profitable, but its EBITDA is impressive. Their EBITDA margin for 2005 was 21.25%. The sector will continue to consolidate.

Alliance Imaging (NYSE: AIQ - News), another competitor, has seen its revenue remain stagnant over the past few years. Over the next few months, we believe Alliance Imaging or a GE subsidiary -- namely GE Healthcare -- could be interested in the combined Radiologix and Primedex firm, to be called Radnet, Inc.

Rock on....

Today a Long White Candlestick was formed. This shows that the prices advanced significantly from open to close during the day under strong buying pressure.

Support @ $2.70...2.34...2.25
Resistance @ $3.01
MACD is Bullish

52wk Range: 0.25 - 2.70

Volume: 720,060
Avg Vol (3m): 287,977

Technicals
Record Price High.............
Percentage Gainer

Last Price Quote is:
18.16%above 13-day EMA
38.90%above 50-day EMA
RS Rating: N/A 

Fundamentals
Key Data:
Market Cap (M): $106.03 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

ready to go higher ?

here we go volume comes in break of 2.75 ...70000 shares in 8min....already 2.80

so far nice weekly breakout