US Oncology Reports First Quarter 20...(e required to estimate a value that woul...),Health

Date:5/7/2008

e required to estimate a value that would be allocated to goodwill in a hypothetical purchase transaction using an estimate of the segment's fair value as the purchase price. This estimation process also requires the identification and valuation of intangible assets that have either increased in value or have been created through Company initiatives and investments. Any value assigned to identified intangible assets reduces the amount attributable to goodwill.

In addition to the goodwill impairment charge, we recognized restructuring and other charges which relate primarily to employee severance costs amounting to $1.3 million in the first quarter of 2008. These amounts are excluded from Adjusted EBITDA.

During the first quarter of 2008 and fourth quarter of 2007 we also recognized an unrealized loss of $16.0 million and $11.6 million, respectively, related to the Company's interest rate swap, due to decreasing LIBOR rates. Because the interest rate swap is not accounted for as a cash flow hedge, changes in the fair value of the instrument are reported currently in earnings. Although cash flow hedge accounting is no longer applied to the interest rate swap, the Company believes the swap, economically, remains a hedge against the variability of interest payments on a portion of its outstanding floating rate debt. The non-cash charge on the interest rate swap is excluded from Adjusted EBITDA.

Cash Flow

During the first quarter of 2008, operating cash flow was $50.9 million, compared to $23.7 million in the first quarter of 2007. The increase is primarily due to improved receivable collections and the election to pay interest due March 15, 2008 on the Holdings notes, in kind. Operating cash flow decreased $23.3 million from $74.2 million in the fourth quarter of 2007 due to payments made to physicians, earned in 2007 under programs that encourage their efficient use of capital and services in our pharmaceutical services segment, as well as s
'/>"/>

SOURCE US Oncology Holdings, Inc. Copyright©2008 PR Newswire. All rights reserved

0 GOOD

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Related medicine news :

1. Genomic Health Announces Multiple Studies on Oncotype DX(TM) Presented at 2007 American Society of Clinical Oncology (ASCO) Breast Cancer Symposium
2. ESMO, Oxford Journals and the Japanese Society of Medical Oncology announce collaboration
3. SuperGen to Highlight Oncology Pipeline Data in Multiple Presentations at the AACR-NCI-EORTC International Conference
4. U.S. Oncology Initiates Complete Phase Ib Trial of Brostallicin Combination Therapy in Advanced Solid Tumors
5. US Oncology to Report 2007 Third Quarter Earnings Results
6. VioQuest to Present Data on Oncology Compounds VQD-002 and Lenocta(TM) at AACR-NCI-EORTC International Meeting
7. Genomic Health Reports Inclusion of Oncotype DX(TM) in American Society of Clinical Oncology Guidelines
8. Varian Medical Systems Ranks First in Overall Service Performance in 2007 Survey of U.S. Radiation Oncology Professionals
9. Accuray Announces Four New Products at Nations Leading Radiation Oncology Meeting
10. Debiopharm and NanoCarrier Sign License and Supply Agreement for Dach-Platin Polymeric Micelle in Oncology
11. National Autism Association and Deirdre Imus Environmental Center for Pediatric Oncology Announce National Greening Your School Initiative