21st Century Oncology Holdings Inc. Reports Second Quarter 2015 Financial Results

20:00 EDT 10 Aug 2015 | Marketwired

FORT MYERS, FL -- (Marketwired) -- 08/11/15 --

Second Quarter 2015 Highlights:

Recent Developments:

Century Oncology Holdings, Inc.
("21C" or the "Company"), the leading global, physician-led provider of integrated cancer care services ("ICC"), announced today its financial results for the second quarter ended June 30, 2015.

Dr. Daniel Dosoretz, Founder, President and Chief Executive Officer, commented, "We achieved our revenue and EBITDA targets for the quarter and the first six months of 2015 through same store growth, contributions from acquisitions, strong results from our international operations, and executing on our savings and synergy programs. This marks our sixth consecutive quarter of Pro Forma Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation and other non-cash and pro forma items) margin expansion, the result of leveraging existing overhead over a larger revenue base. We remain on track to achieve our full year 2015 Pro Forma Adjusted EBITDA guidance of between $182 million and $190 million. 21C's management team remains focused on further expense management, synergy realization, EBITDA expansion, generating positive free cash flow and continued deleveraging."

Dr. Dosoretz continued, "On April 30, 2015, 21C completed a comprehensive refinancing of its debt structure. We refinanced our $90.0 million term loan facility, 9 7/8% Senior Subordinated Notes, 8 7/8% Senior Secured Second Lien Notes, and the 11 3/4% Senior Secured Notes issued by OnCure Holdings, Inc., all with maturities of less than two years, with a $610 million, 7-year Term Loan and $360 million of 8-year, 11.00% Senior Unsecured Notes due 2023. Additionally, we improved our liquidity by replacing our $100 million Revolver due 2016 with a new $125 million 5-year Revolver. Just after quarter end, on July 2, we purchased the remaining 35% interest in SFRO, completing one of the most important acquisitions in our recent history. SFRO's contributions have exceeded expectations since our initial majority investment in early 2014, and we expect this to continue as we realize synergies with 21C's existing operations in southeast Florida as well as identify and execute upon incremental investment opportunities in this region."

Second Quarter 2015 Results

Total pro forma revenues for the second quarter of 2015 were $285.2 million, compared to total pro forma revenues of $265.9 million in the same quarter of 2014, driven primarily by higher freestanding revenues, contributions from acquisitions, and international revenue growth.

Pro Forma Adjusted EBITDA in the second quarter of 2015 was $51.1 million, or 17.9% of total revenues, up 13.0% compared to $45.2 million, or 17.0% of total pro forma revenues, in the second quarter of 2014. A reconciliation of net loss attributable to 21C, determined in accordance with generally accepted accounting principles ("GAAP") to Pro Forma Adjusted EBITDA and total revenues, determined in accordance with GAAP, to total pro forma revenues for the quarters ended June 30, 2015 and 2014 is included in the attached supplemental financial information.

Income tax expense in the second quarter of 2015 was $3.1 million, compared to $0.9 million in the second quarter of 2014. The net loss for the second quarter of 2015 was $62.5 million, primarily driven primarily by approximately $37.4 million in the early extinguishment of debt related to the April 30, 2015 refinancing, compared to a net loss of $204.6 million in the second quarter of 2014.

Recent Developments

On July 2, 2015, the Company completed its acquisition of the remaining 35% interest in SFRO for approximately $49.0 million, funded through a combination of cash, notes and equity, and is proceeding with integrating SFRO into 21C. The Company made its initial 65% investment in SFRO on February 10, 2014.

On August 1, 2015, the Company expanded into Colombia through a partnership with a leading Medellin-based oncology group which together acquired a controlling stake in the hospital-based radiation therapy operation of Unidad de Oncología Hospital Manuel Uribe de Envigado S.A.

Conference Call

The Company will host a conference call on Wednesday, August 12, 2015 at 12:00 p.m. Eastern Time, during which management will discuss its financial results in further detail. The dial-in numbers are 877-407-9039 for domestic callers and 201-689-8470 for international callers. In addition, a telephonic replay of the call will be available until August 26, 2015. The replay dial-in numbers are 877-870-5176 for domestic callers and 858-384-5517 for international callers. Please use the conference ID number 13616012 to access the replay.

A live webcast and webcast replay of the call will also be available from the events section on the Investors portion of the corporate web site at

About 21
Century Oncology Holdings, Inc.

21C is the largest global, physician led provider of integrated cancer care services. The Company offers a comprehensive range of cancer treatment services, focused on delivering academic quality, cost-effective patient care in personal and convenient settings. As of June 30, 2015, the Company operated 183 treatment centers, including 148 centers located in 17 U.S. states and 35 centers located in six countries in Latin America. (Source: 21st Century Oncology Holdings, Inc.)

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," "may increase," "forecast," and similar expressions or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements are based on management's current expectations or beliefs about the Company's future plans, expectations and objectives, including, but not limited to, the Company's expected financial results and estimates for 2015 and the effects of the Centers for Medicare & Medicaid Services' Final Rule for the 2016 Physician Fee Schedule on its results. These forward-looking statements are not historical facts and are subject to risks and uncertainties that could cause the actual results to differ materially from those projected in these forward-looking statements including, but not limited to reductions in Medicare reimbursement, healthcare reform, decreases in payments by managed care organizations and other commercial payers and other risk factors that may be described from time to time in the Company's filings with the Securities and Exchange Commission. Readers of this release are cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date stated, or if no date is stated, as of the date of this press release. The Company undertakes no obligation to publicly update or revise the forward-looking statements contained herein to reflect changed events or circumstances after the date of this release, unless required by law.

We believe the Pro-Forma Adjusted EBITDA provides useful information about our financial performance to investors, lenders, financial analysts and rating agencies since these groups have historically used EBITDA-related measures in the healthcare industry, along with other measures, to estimate the value of a company, to make informed investment decisions, to evaluate a company's leverage capacity and its ability to meet its debt service requirements. Pro-forma Adjusted EBITDA eliminates the uneven effect of non-cash depreciation of tangibles assets and amortization of intangible assets, much of which results from acquisitions accounted for under the purchase method of accounting. Pro-forma Adjusted EBITDA is also used by us to measure individual performance for incentive compensation purposes and as an analytical indicator for purposes of allocating resources to our operating business and assessing their performance, both internally and relative to our peers, as well as to evaluate the performance of our operating management teams, and for purposes in the calculation of debt covenants and related disclosures.

Pro-Forma Adjusted EBITDA is not intended as a substitute for net income (loss) attributable to 21st Century Oncology Holdings, Inc. shareholder, operating cash flows or other cash flow data determined in accordance with accounting principles generally accepted in the United States. Due to varying methods of calculation, Pro-forma Adjusted EBITDA as presented may not be comparable to similarly titled measures of other companies.

21st Century Oncology Contact: Richard Lewis SVP, CFO for U.S. Operations 239-931-7281 Investor Contact: The Ruth Group Nick Laudico 646-536-7030 Brandon Vazquez 646-536-7032 NEXT ARTICLE

More From BioPortfolio on "21st Century Oncology Holdings Inc. Reports Second Quarter 2015 Financial Results "

Quick Search


Relevant Topics

  Bladder Cancer Brain Cancer Breast Cancer Cancer Cervical Cancer Colorectal Head & Neck Cancers Hodgkin Lymphoma Leukemia Lung Cancer Melanoma Myeloma Ovarian Cancer Pancreatic Cancer ...

Cancer Disease
Cancer is not just one disease but many diseases. There are more than 100 different types of cancer. Most cancers are named for the organ or type of cell in which they start - for example, cancer that begins in the colon is called colon cancer; cancer th...

The Top 100 Pharmaceutical Companies
Top 10 biotech and pharmaceutical companies worldwide based on market value in 2015 2015 ranking of the global top 10 biotech and pharmaceutical companies based on revenue (in billion U.S. dollars) Johnson & Johnson, U.S. 74...