USDL returns to profitability

Executives at imaging center chain U.S. Diagnostic believe the firm is back on track following three straight quarters of losses. The West Palm Beach, FL-based firm posted a 6% increase in revenue and a net profit during its first quarter.

For the period (end-March), sales were $54.5 million, compared with $51.4 million reported in the same period last year. Net income was $746,000, compared with $2 million in 1997.

President and CEO Joseph Paul expects progressive improvement in the company’s financial results through 1998. In the first of its four-step corporate growth strategy, USDL initiated a cost-cutting and efficiency effort towards the end of the first quarter. The impact of most of the cost-cutting will be realized in the second quarter and beyond.

In the second part of the strategy, USDL is divesting noncore assets, such as its mobile subsidiary Medical Diagnostics, and focusing on its core business of fixed-site imaging centers. The sale of MDI to Alliance Imaging closed this month.

USDL is also making progress in refinancing its debt. Upon completion of this third objective, the company believes that additional funds will be available for the final strategic goal, which is to resume acquisitions to complement the firm’s imaging networks.