US Oncology Reports Fourth Quarter and Fiscal Year 20...(16.7 million in the fourth quarter of 20...)

Date:2/28/2008

16.7 million in the fourth quarter of 2006 due primarily to higher personnel costs, which reflect annual merit increases and personnel investments made to support our expanded regional infrastructure. Compared to the third quarter of 2007, corporate costs were essentially flat.

During calendar 2007, corporate costs were $83.6 million, an increase of $8.6 million from 2006. The increase is due to higher 2007 personnel costs (as discussed previously), as well as increased marketing costs to support our marketing efforts and expenses associated with an upgrade of the company's financial information system.

Impairment and Restructuring Charges

We continue to align our agreements with the service needs and maturity of our affiliated practices. During December 2007, eleven physicians from a practice previously affiliated under a comprehensive service agreement entered into a binding agreement to convert to an oncology pharmaceutical services agreement effective December 31, 2007. The company recognized an impairment charge of $6.5 million related to this practice, which relates primarily to a $4.7 million write-off of our service agreement intangible asset that was terminated in connection with the conversion.

Net Income (Loss)

Net loss for the fourth quarter of 2007 was $14.8 million, a decrease of $18.1 million from net income of $3.3 million the fourth quarter of 2006 and a decrease of $10.6 million from the third quarter of 2007. When compared to the fourth quarter of 2006 and the third quarter of 2007, the decrease resulted from the impairment charges described previously, increased interest expense reflecting additional borrowings and a loss on an interest rate swap.

For calendar year 2007, the net loss was $35.0 million, a decrease of $61.2 million compared to fiscal year 2006 net income of $26.2 million. Excluding impairment and restructuring charges, income from operations decreased $35.9 million due primarily to the impa
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SOURCE US Oncology Holdings, Inc. Copyright©2008 PR Newswire. All rights reserved

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