MQ Associates, Inc. Announces Results for the Third Quarter and Nine Months Ended Septembe...( ALPHARETTA Ga. Nov. 7 /- MQ Assoc...),Health

ALPHARETTA, Ga., Nov. 7 /PRNewswire-FirstCall/ -- MQ Associates, Inc. ("MedQuest"), a leading national provider of diagnostic imaging services, today announced its results for the third quarter and nine months ended September 30, 2007.

Net revenue was $59.8 million for the third quarter 2007, representing a decrease of $8.1 million, or 11.9%, from net revenue of $67.9 million for the third quarter 2006. Net revenue was $186.5 million for the nine months ended September 30, 2007, representing a decrease of $22.2 million, or 10.6%, from net revenue of $208.7 million for the nine months ended September 30, 2006. For the third quarter 2007 and nine months ended September 30, 2007, the decrease in net revenue was driven in large part by lower scan volumes and Medicare reimbursement reductions under the Deficit Reduction Act of 2005.

Income from operations was $1.1 million for the third quarter 2007, representing a decrease of $7.7 million, or 87.8%, from income from operations of $8.8 million for the third quarter 2006. Income from operations was $3.5 million for the nine months ended September 30, 2007, representing a decrease of $13.9 million, or 79.7%, from income from operations of $17.4 million for the nine months ended September 30, 2006.

Capital expenditures, excluding payments for capital equipment under operating leases, were $0.1 million for the third quarter 2007 compared to $7.9 million for the third quarter 2006, and $7.6 million for the nine months ended September 30, 2007, compared to $19.5 million for the nine months ended September 30, 2006. Cash used in operating activities was $10.7 million for the nine months ended September 30, 2007, compared to cash provided by operating activities of $11.8 million for the nine months ended September 30, 2006. The decrease was primarily due to an increase in the net loss of $15.3 million for the nine months ended September 30, 2007 and a decrease in cash flows provided by working capital ass
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