InSight's fourth quarter 2009 revenues decreases by 17.3% year-on-year

InSight Health Services Holdings Corp. (“InSight”) (OTCBB: ISGT) today announced its financial results for the fourth quarter and fiscal year ended June 30, 2009.

Kip Hallman, InSight’s President and CEO, stated, “I am pleased that we successfully executed on a number of key strategic initiatives intended to strengthen our retail center footprint, improve our revenue cycle management, achieve better radiologist alignment, and reduce our operating costs. As a result, we were able to achieve stable year over year Adjusted EBITDA and to significantly improve our operating margins even in this very challenging economic environment.”

InSight reported that revenues decreased 17.3% from approximately $64.8 million for the fourth quarter of 2008, to approximately $53.6 million for the fourth quarter of 2009. Revenues from fixed operations decreased approximately 20.6% from approximately $40.7 million for the fourth quarter of 2008, to approximately $32.3 million for the fourth quarter of 2009, principally due to the disposition of imaging centers. Revenues from mobile operations decreased approximately 11.7% from approximately $24.1 million for the fourth quarter of 2008, to approximately $21.3 million for the fourth quarter of 2009 primarily due to reductions in reimbursement from its customers and a decline in the number of customers served.

Revenues decreased approximately 13.5% from approximately $264.9 million for fiscal 2008, to approximately $229.3 million for fiscal 2009. Revenues from fixed operations decreased approximately 17.5% from approximately $168.8 million for fiscal 2008, to approximately $139.3 million for fiscal 2009 primarily due to the disposition of imaging centers. Revenues from mobile operations decreased approximately 6.4% from approximately $96.1 million for fiscal 2008, to approximately $90.0 million for fiscal 2009 primarily due to reductions in reimbursement from its customers and a decline in the number of customers served.

Net cash provided by operating activities was approximately $18.1 million for fiscal 2009 and resulted primarily from Adjusted EBITDA (see discussion of Adjusted EBITDA below) of approximately $39.7 million less approximately $25.3 million of cash paid for interest, cash paid for taxes of approximately $0.4 million and various changes in InSight’s balance sheet accounts, primarily operating assets and liabilities, deferred income taxes and net distributions from its unconsolidated partnerships.

At June 30, 2009, InSight had approximately $26.1 million in cash, cash equivalents and restricted cash (including approximately $6.5 million that was subject to the lien for the benefit of the senior secured floating rate notes), and approximately $12.2 million of availability under its revolving credit facility, based on its borrowing base. At June 30, 2009, there were no borrowings outstanding under the credit facility; however, there were letters of credit of approximately $1.9 million outstanding under the credit facility.

Adjusted EBITDA increased approximately 11.4% from approximately $9.1 million for the fourth quarter of 2008, to approximately $10.1 million for the fourth quarter of 2009. Adjusted EBITDA decreased 1.2% from approximately $40.2 million for fiscal 2008, to approximately $39.7 million for fiscal 2009. Adjusted EBITDA for the fourth quarter of 2009 increased approximately 18.6% from approximately $8.5 million for the third quarter of 2009.