It looks like the snippet doesn’t, but the atextimage class that is used allows you to open an existing file and use that as the background, and you can use an existing image that is nothing but a transparent .gif or .png, as you can see from the atextimage demo page (select the blanktrans.gif as the background).
http://www.gaclarke.com/atextimage/demoform.php
So it shouldn’t be difficult to add another parameter containing the name of the image to use to the snippet call, and use it internally to use the CreateImage($ipath) function instead of the MakeImage($iw=0,$ih=0) function.
Or, you could add the imagecolortransparent function:
http://il.php.net/manual/en/function.imagecolortransparent.php
Transparent GIF w/ text from TTF Font
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$image = imagecreatetruecolor(192, 36);
$trans_color = imagecolorallocate($image, 255, 0, 0);
$color = imagecolorallocate($image, 255, 255, 255);
imagecolortransparent($image, $trans_color);
imagettftext($image, 10, 0, 10, 23, $color, "impact.ttf", " MENU ITEM");
imagegif($image, "output.gif");
imagedestroy($image);