U.S. Diagnostic reports Q2 profit

August 19, 1998

The financial picture is beginning to solidify at imaging services firm U.S. Diagnostic of West Palm Beach, FL. Although the company this month reported second-quarter (end-June) financial results that included a 7% revenue decline, the company boosted

The financial picture is beginning to solidify at imaging services firm U.S. Diagnostic of West Palm Beach, FL. Although the company this month reported second-quarter (end-June) financial results that included a 7% revenue decline, the company boosted its operating income over the previous quarter, and a one-time gain helped propel USDL's net income numbers into the black.

For the period, USDL posted revenues of $52.5 million, compared with $56.4 million in the second quarter of 1997. The company had net income of $3.4 million, a figure that included a one-time gain of $5.8 million due to the sale of its Medical Diagnostics subsidiary to Alliance Imaging of Anaheim, CA. USDL posted a net loss of $11.9 million in the same period the year before.

USDL continues to try to improve its cash collection procedures, according to president and CEO Joseph Paul. The firm also plans to refinance its debt, a move that, once completed, will allow the firm to resume its acquisition strategy.

In other USDL news, the company entered into an equipment service and preferred vendor agreement with GE Medical Systems of Milwaukee. GE will provide service for equipment installed at USDL imaging centers across the U.S., and GE will be USDL's preferred vendor for new capital equipment purchases. USDL hopes the alliance will save the company $3.5 million annually once the agreement is fully operational.