RDNT » Topics » Item 3 Quantitative and Qualitative Disclosures About Market Risk

This excerpt taken from the RDNT DEF 14A filed Oct 20, 2006.

Quantitative and Qualitative Disclosures About Market Risk

Primedex sells its services exclusively in the United States and receives payment for its services exclusively in United States dollars. As a result, Primedex’s financial results are unlikely to be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets.

The majority of Primedex’s interest expense is not sensitive to changes in the general level of interest in the United States because the majority of Primedex’s indebtedness has interest rates that were fixed when Primedex entered into the note payable or capital lease obligation. None of Primedex’s long-term liabilities have variable interest rates. Primedex’s credit facility, classified as a current liability on its financial statements, is interest expense sensitive to changes in the general level of interest because it is based upon the current prime rate plus a factor.

223




This excerpt taken from the RDNT 10-Q filed Oct 2, 2006.

Item 3     Quantitative and Qualitative Disclosures About Market Risk

 

We sell our services exclusively in the United States and receive payment for our services exclusively in United States dollars.  As a result, our financial results are unlikely to be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets.

 

A large portion of our interest expense is not sensitive to changes in the general level of interest in the United States because the majority of our indebtedness has interest rates that were fixed when we entered into the note payable or capital lease obligation.  As part of the refinancing, we were required to swap at least 50% of the aggregate principal amount of the facilities to a floating rate within 90 days of the close of the agreement on March 9, 2006.  On April 11, 2006, effective April 28, 2006, on $73.0 million (one half of our First and Second Lien Term Loans of $146.0 million), we entered into an interest rate swap fixing the LIBOR rate of interest at 5.47% for a period of three years.  Previously, the interest rate on the $73.0 million was based upon a spread over LIBOR which floats with market conditions.  In addition, our credit facility, classified as a long-term liability on our financial statements, is interest expense sensitive to changes in the general level of interest because it is based upon the current prime rate plus a factor.

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki