Alliance HealthCare Services Provides Business Update
Company Affirms 2015 Outlook
NEWPORT BEACH, Calif.–(BUSINESS WIRE)–Alliance HealthCare Services, Inc. (NASDAQ:AIQ) (the “Company” or
“Alliance”), a leading national provider of outsourced diagnostic
imaging through its Alliance HealthCare Radiology Division (“Alliance
Radiology”), interventional radiology & pain management services through
its Interventional Services Division (“Alliance HealthCare
Interventional Partners”) and radiation therapy services through its
Alliance HealthCare Oncology Division (“Alliance Oncology”), announced
today that it is affirming the guidance issued for its fiscal year 2015
and is pleased to provide a business update to its shareholders.
Recent Business Highlights
-
Growth strategy for the core business remains intact and the Company
affirms 2015 fiscal year guidance -
Purchase of majority interest by Fujian Thai Hot Investment Co., Ltd
(“Thai Hot”) -
Expects to appoint three new board members from Thai Hot including
Kisum Wong, Yong Ge and Tao Zhang
Full Year 2015 Guidance
Alliance is affirming its full year 2015 guidance as noted in its second
quarter 2015 earnings call on August 6, 2015. Tom Tomlinson, Chief
Executive Officer and President of Alliance HealthCare Services, stated,
“The recent news regarding a change in ownership for approximately 51.5%
of the company’s shares does not imply a change in strategic direction
or financial outlook for the company. As we noted in last week’s press
release related to the sale of shares by Oaktree Capital Management,
L.P. (‘Oaktree’) and other parties, the company remains very focused on
executing the strategic initiatives in the U.S. that we have previously
articulated. In making its investment, Thai Hot performed extensive due
diligence utilizing world-class advisors and confirmed their strong
support for the company’s strategic direction and leadership.”
Tomlinson continued, “While we view the transaction between Oaktree and
Thai Hot as a positive development for the Company, we see it primarily
as an investor event more than a company event. As clearly evidenced by
the progress we are making in returning Alliance to growth, as we have
discussed on recent earnings calls, the leadership team remains
confident in our strategy and execution. Based on discussions with the
prospective new Board members, we will remain focused on the strategic
growth plan we have outlined as we strive to create long-term value for
our shareholders. To reiterate, the key components of this plan include
(1) leveraging our strong value proposition and pipeline in our oncology
business to drive continued strong growth in that business, (2)
deploying our expanded radiology offering, called RAD360™, through new
and existing hospital relationships, and (3) expanding our newest
platform, Alliance HealthCare Interventional Partners, across both new
and existing geographic markets.”
Further Background on Fujian Thai Hot Investment Co., Ltd
As previously announced on September 16, 2015, Fujian Thai Hot
Investment Co., Ltd (“Thai Hot”) agreed to purchase approximately 51.5%
of the outstanding common stock of the Company. Thai Hot is an
investment holding company with a diversified portfolio of assets in
various industries including investments in biomedicine and healthcare
with assets totaling more than $1 billion dollars. Thai Hot’s healthcare
investments include a controlling ownership of 92.5% of the total equity
in Fujian Huitian Biomedicine Company, which is a large-scale
pharmaceutical company with more than 80 kinds of active pharmaceutical
ingredients and drugs. Thai Hot also has strong relationships with
premier hospitals in China, including the General Hospital of Chinese
Liberation Army and Beijing Union Medical College Hospital. Management
does not believe that any of Thai Hot’s investments create any conflicts
for the Company.
Thai Hot Investment is also the majority shareholder of Thai Hot Group,
a listed company on the Shenzhen Stock Exchange. It holds 609,400,795
shares, accounting for 59.91% of Thai Hot Group’s total equity. Thai Hot
Group is a company with its core focus on real estate development with
additional investments in the finance, fluorine chemical engineering and
mining industries. Annual revenue for 2015 is expected to exceed
approximately $4.7 billion.
Kisum Wong, the founder and Chairman of the Thai Hot Group, explained
the rationale for Thai Hot’s investment in Alliance. “We made our
strategic investment in Alliance primarily because of our assessment of
the strong growth opportunities present in the U.S. healthcare market.
Based on our due diligence, we believe that Alliance, with its 1,000
hospital customer relationships, is uniquely positioned to capitalize on
this growth. We have a strong conviction that Tom and his team will
execute upon their strategic plan and drive value for all shareholders.”
Mr. Tomlinson added, “Alliance has a bright future with compelling
growth opportunities in its core markets. We welcome the new board
members from Thai Hot and look forward to continuing to work closely
with the Board to determine the best ways to maximize long-term
shareholder value, which may include capitalizing on opportunities in
China and other global markets.”
Anticipated New Board Members
Kisum Wong is the founder and Chairman of the Thai Hot Group, a company
he founded approximately 19 years ago. He has also served as Chairman
and general manager of Thai Hot since March 2013 and is expected to be
appointed Non-Executive Chairman of the Board for Alliance. The current
Chairman of the Board, Larry C. Buckelew, will continue to serve on the
Board of Directors. Mr. Wong has been a representative of the 12th
National Committee of the Chinese People’s Political Consultative
Conference since February 2013, and is also the Vice President of the
Fujian Chamber of Commerce, and Director of Fujian Haixia Bank. Mr. Wong
has a BA in engineering from Fuzhou University.
Yong Ge and Dr. Tao Zhang will also be appointed to the Board together
with Chairman Wong and will replace Michael P. Harmon, Curtis S. Lane
and Aaron A. Bendikson. Mr. Ge has been the deputy general manager of
Thai Hot Group since February 2014. Previously, Mr. Ge was the deputy
general manager of Dalian Zhonggeng Real Estate Development Co. Ltd.
from 2008 to 2010 and assistant to the president of Fujian Junshi Energy
Co. Ltd. from 2010 to 2012.
Dr. Zhang founded United Pacific Healthcare in August 2014 in order to
capitalize on the dynamic growth opportunities in the Chinese healthcare
marketplace. Previously, Dr. Zhang worked directly under Dr. Thomas
Frist, Jr., the co-founder of HCA, for six years, three years of which
Dr. Zhang was in the U.S. on a part time basis. Dr. Zhang spent the
remaining three years in China as the full-time chairman and CEO of CHC,
Dr. Frist’s China venture in the healthcare delivery sector. Dr. Zhang
earned his MD degree in China and underwent cardiac surgery training for
three years before he joined CITIC Pacific in 2001. Dr. Zhang worked at
CITIC Pacific for four years in the healthcare division and invested and
built two of the top ten private hospitals in China. Dr. Zhang also
holds an MBA and a Master’s Degree in Health Sector Management from Duke
University.
About Alliance HealthCare Services
Alliance HealthCare Services (NASDAQ: AIQ) is a leading national
provider of outsourced healthcare services with a 30+ year track record
of award-winning patient care/satisfaction and service line expertise.
Providing diagnostic radiology services through its Radiology Division
(Alliance HealthCare Radiology), interventional radiology & pain
management services through its Interventional Services Division
(Alliance HealthCare Interventional Partners) and radiation oncology
services through its Oncology Division (Alliance HealthCare Oncology),
Alliance is the nation’s largest provider of advanced diagnostic mobile
imaging services, an industry-leading operator of fixed-site imaging
centers, and a leading provider of stereotactic radiosurgery nationwide.
As of June 30, 2015, Alliance operated 522 diagnostic imaging and
radiation therapy systems, including 117 fixed-site imaging centers
across the country; and 32 radiation therapy centers and stereotactic
radiosurgery (SRS) facilities. With a strategy of partnering with
hospitals, health systems and physician practices, Alliance provides
quality clinical services for over 1,000 hospitals and other healthcare
partners in 44 states where approximately 1,800 Alliance Team Members
are committed to providing exceptional patient care and exceeding
customer expectations. For more information, visit www.alliancehealthcareservice-us.com.
About Fujian Thai Hot Investment
Thai Hot is an investment holding company based in Fuzhou, China holding
a diversified portfolio of assets in various industries including real
estate development, securities, hospitality, biomedicine and fluorine.
They were founded in 1996 and have assets exceeding $10 billion as of
December 31, 2014 which includes subsidiary investments traded on the
Shenzhen Stock Exchange and Shanghai Stock Exchange. In early 2015, Thai
Hot made healthcare and medical services one of its top priorities,
including radiology and oncology, and it intends to expand healthcare
services in mainland China to an underserved healthcare marketplace.
Forward-Looking Statements
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements relate
to, without limitation, the director appointments to the Company’s board
of directors, the expected closing of the transaction and the Company’s
competitive position, long-term value proposition, growth and
international market and other opportunities. Forward-looking statements
can be identified by the use of forward looking language such as
“believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,”
“project,” “will be,” “will continue,” “will result,” “could,” “may,”
“might,” or any variations of such words with similar meanings. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. These statements
involve risks and uncertainties that could cause actual results to
differ materially from those projected. For a complete list of risks and
uncertainties, please refer to the Risk Factor section of the Company’s
Form 10-K for the year ended December 31, 2014 filed with the Securities
and Exchange Commission.
Contacts
Alliance HealthCare Services
Howard Aihara
Executive Vice
President
Chief Financial Officer
949-242-5300
