Virtual Radiologic's first-quarter 2010 revenues up 8% to $30.8M

Virtual Radiologic Corporation (NASDAQ:VRAD), a national radiology practice and a leader in the development of radiologist workflow technology, today reported financial results for the first quarter ended March 31, 2010.

“Notes Regarding the Use of Non-GAAP Financial Measures”

First Quarter Financial Highlights

• Read volume up 14% to 700,000
• Finals volume grew 37%, representing 32% of total volume
• Revenue up 8% to $30.8 million
• Adjusted EBITDA up 25% to $7.0 million and 23% of revenue
• Adjusted net income up 25% to $3.1 million; adjusted diluted earnings per share (EPS) up 27% to $0.19
• GAAP net income up 40% to $2.0 million; GAAP diluted EPS up 33% to $0.12
• Cash of $52.4 million; the Company has no debt

Additional First Quarter Highlights

• U.S. Patent Office approves patent covering several applications within vRad's technology portfolio
• Stevie award winner for technology-enabled customer service

"We are pleased with our first quarter financial performance," said Rob Kill, Virtual Radiologic's president and chief executive officer. "The recent patent approval and the Stevie award are strong validations of our technology focus that differentiates us in the radiology market."

First Quarter Results

Total revenue increased 8% to $30.8 million for the quarter ended March 31, 2010, compared to $28.6 million for the quarter ended March 31, 2009. The increase in revenue over the first quarter of 2009 resulted primarily from a 15% increase in the number of hospitals and medical facilities served to 1,205 as of March 31, 2010, representing approximately 21% of all hospitals in the United States.

Adjusted EBITDA increased 25% to $7.0 million for the quarter ended March 31, 2010, compared to $5.6 million for the quarter ended March 31, 2009. Adjusted EBITDA was 23% of revenue for the quarter ended March 31, 2010, compared to 20% for the prior year period.

Adjusted net income increased 25% to $3.1 million for the quarter ended March 31, 2010, compared to $2.5 million for the quarter ended March 31, 2009. This resulted in adjusted diluted EPS of $0.19 for the quarter ended March 31, 2010, compared to $0.15 for the quarter ended March 31, 2009.

GAAP net income was $2.0 million for the quarter ended March 31, 2010, compared to $1.4 million for the quarter ended March 31, 2009, resulting in diluted earnings per share of $0.12 for the quarter ended March 31, 2010, compared to $0.09 for the quarter ended March 31, 2009.