Agreement Allows for Raising Additional Capital to Support Core Operations, Which Remain Fundamentally Strong
Preliminary Second Quarter 2014 Statistics
- Total treatment growth of 53.9% year-over-year
- Same market freestanding treatments per day grew 2.2% year-over-year
- Same market freestanding revenues increased 8.9% year-over-year
- Total RVU's up 44.0% year-over-year
- Total ICC Physicians increased 35.5% year-over-year
- Total treatment centers increased from 131 to 180
- International Treatment growth of 17.3% year-over-year
- Total revenues in the range of $260-270 million and pro forma adjusted EBITDA of $41-44 million
FORT MYERS, Fla., July 29, 2014 (GLOBE NEWSWIRE) -- 21 st Century Oncology Holdings, Inc. ("21 st Century Oncology" or "the Company") today announced that it has entered into two agreements with a group of noteholders of its outstanding 9 7/8% Senior Subordinated Notes due 2017, providing the Company with incremental liquidity as well as a framework for reducing outstanding debt and increasing cash flow. The Company has been collaborating with a number of its noteholders and lenders on options to recapitalize its balance sheet in a manner that provide it the financial flexibility to continue to grow its business in the future as it has done in the recent past. Additionally, the Company's subsidiary, South Florida Radiation Oncology (SFRO) amended its credit agreement in order to refinance existing capital lease obligations and repay an outstanding inter-company loan.
The Company's principal stockholder, Vestar Capital Partners, and the noteholder group have agreed to enter into a Recapitalization Support Agreement that outlines the potential terms of a deleveraging transaction that is expected to occur in October or November 2014. In order to provide adequate interim liquidity, certain members of the noteholder group lent subsidiaries of the Company $17.5 million under a new credit facility.
Dr. Daniel Dosoretz, Founder and Chief Executive Officer, said, "We are extremely pleased to generate this near-term flexibility in our capital structure and look forward to working on a broader recapitalization plan with our partners. We believe this agreement provides us with time and resources to pursue a beneficial recapitalization that will facilitate the continued execution of our integrated cancer care strategy and long term growth of our business."
"In the meantime our business continues to perform exceptionally well. During the second quarter of 2014, we saw robust growth across all of our key operating metrics and continued success of our ICC model. Total treatments were up nearly 54% year-over-year driven by the transformational acquisitions we made. Revenues on a same market, freestanding basis were up nearly 9%. We believe these preliminary statistics that are the fundamental drivers of our business demonstrate the continued execution of our growth strategy. We look forward to further updating our investors on our quarterly performance when we report full second quarter results," he concluded.
For the fiscal quarter ended June 30, 2014, the Company expects to report total revenues in the range of $260-270 million and pro forma adjusted EBITDA of $41-44 million.
Millstein & Co., Kirkland & Ellis LLP and FTI Consulting are advising the Company in connection with certain capital structure and strategic initiatives.
A detailed Form 8-K filing that includes the specifics of the new term loan and recapitalization support agreement is available on the U.S. Securities and Exchange Commission (SEC) website, www.sec.gov .
About 21 st Century Oncology Holdings, Inc.
21 st Century Oncology Holdings, Inc. is the largest global, physician led provider of Integrated Cancer Care Services. The Company offers a comprehensive range of cancer treatment services, focused on delivering academic quality, cost-effective patient care in personal and convenient settings. The Company operates 180 treatment centers, including 145 centers located in 16 U.S. states. The Company also operates 35 centers located in six countries in Latin America. The Company holds market leading positions in most of its domestic local markets and abroad.
Investors: Nick Laudico The Ruth Group 646-536-7030
