RadNet (RDNT) Reports In-Line Q1 EPS, Revenues Beat; Affirms FY19 Revenue Outlook

RadNet (NASDAQ: RDNT) reported Q1 EPS of ($0.08), in-line with the analyst estimate of ($0.08). Revenue for the quarter came in at $271.5 million versus the consensus estimate of $256.3 million.

• Revenue increased 17.4% to $271.5 million in the first quarter of 2019 from $231.4 million in the first quarter of 2018
• Adjusted EBITDA(1) increased 57.3% to $33.1 million in the first quarter of 2019 from $21.0 million in the first quarter of 2018
• Diluted loss per share was $(0.08) per share in the first quarter of 2019 as compared with diluted loss per share of $(0.15) from the prior year’s first quarter
• Aggregate procedural volumes increased 7.6%; Same-center procedural volumes increased 2.3% from the first quarter of 2018
• Began operating its second Dignity Health joint Venture in Ventura County, CA and, subsequent to quarter end, completed $120 million incremental credit facility to provide additional financial and operating flexibility for future growth
• RadNet affirms full-year 2019 guidance levels for Revenue, Adjusted EBITDA(1), Free Cash Flow and Capital Expenditures

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “We had the strongest first quarter in our Company’s history, recording record Revenue and EBITDA. Our Revenue increased 17.4% and our EBITDA increased 57.3% from last year’s first quarter. While we benefited by more favorable winter weather conditions during this year’s quarter, our improved performance was also driven by strong contributions from our recent acquisitions and initiatives on the East Coast and overall same-center procedural volume growth of 2.3%.”

Dr. Berger continued, “We continue to grow our core markets through driving patient volumes with effective marketing programs, offering differentiated services, deploying cutting-edge technologies, encouraging alternate payment models (such as capitation) and establishing joint ventures with strong and entrepreneurial health systems. During the quarter, we announced the formation of our second California joint venture with Dignity Health in Ventura County, California. We also made progress with operationalizing our first East Coast capitation contract with Emblem Health and integrating our recently acquired Medical Arts Radiology acquisition in Long Island, New York.”

“Subsequent to quarter’s end, on April 1st, we completed the acquisition of Kern Radiology in Kern County, California. Kern operates 5 multimodality imaging centers, performs over 200,000 exams per year and earns over $25 million of Revenue on an annual basis. Additionally, on April 18th, we completed a financing which raised an incremental term loan of $100 million and added $20 million of additional capacity under our revolving credit facility. The financing affords us additional financial and operating flexibility to complete future tuck-in acquisitions and to establish new health system joint ventures in the future. We are very appreciative of the support and confidence we received from our long-standing lending group,” added Dr. Berger.

GUIDANCE:

RadNet sees FY2019 revenue of $1.05-1.1 billion, versus the consensus of $1.07 billion.

For earnings history and earnings-related data on RadNet (RDNT) click here.

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