21st Century Oncology cuts debt, ends year with $941 million debt

By Lisa Kerner

Charlotte, N.C., March 19 – 21st Century Oncology Holdings, Inc. used a $325 million equity investment from Canada Pension Plan Investment Board to reduce its debt by $200 million and strengthen its liquidity in the third quarter, according to chief financial officer Richard Lewis.

Lewis made his comments on Thursday during the company’s fourth-quarter and full-year 2014 earnings conference call.

The company ended the year on Dec. 31 with cash and cash equivalents of $99 million and long-term debt, less current portion, of about $941 million. This compares with $17.5 million and about $974 million at the end of 2013, respectively, according to the earnings release.

“We closed 2014 with continued growth in same-store freestanding treatments, which resulted in our fourth consecutive quarter of year-over-year pro forma adjusted EBITDA margin expansion,” said founder and chief executive officer Dr. Daniel Dosoretz. “We expect these trends of treatment growth and EBITDA margin expansion will continue into 2015.”

Pro forma revenues for the quarter were up 28.8% year over year at about $270 million. For the full year, pro forma revenues increased 22.5%, topping $1 billion.

Fort Meyers, Fla.-based 21st Century Oncology offers cancer treatment services.

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