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US Oncology Reports 2009 Fourth Quarter and Year End Operating Results
Date:2/25/2010

During 2009, cancer center services revenue increased by $20.4 million, or 5.6 percent, to $387.5 million and Adjusted EBITDA increased by $9.5 million, or 7.5 percent, to $135.4 million as compared to 2008.  Similar to the quarterly comparison above, these increases reflect an increase in radiation treatments and diagnostic scans resulting from the increase in physicians, same market productivity and a shift towards more technologically advanced radiation therapies.

Pharmaceutical Services

Pharmaceutical services revenue in the fourth quarter of 2009 increased by $35.3 million, or 5.8 percent, to $640.2 million as compared to the same period in 2008.  The revenue increase is primarily due to growth in the number of affiliated medical oncologists and a 29.3 percent increase in the average number of physicians under Targeted Physician Services ("TPS") arrangements.  Pharmaceutical services Adjusted EBITDA was $28.0 million for the fourth quarter of 2009 and $25.1 million as compared to the same period in 2008.  The Adjusted EBITDA growth of $2.9 million, or 11.6 percent, reflects increases associated with our growing oncologist network and performance fees and prompt pay discounts earned on bulk purchases of pharmaceuti
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SOURCE US Oncology, Inc.
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