- Revenue was $124.2 million and Adjusted EBITDA was $20.5 million; decreases of 3.0% and 22.1%, respectively, over the prior year's quarter
- For the quarter, RadNet reports a per share net loss of $(0.11) compared to a per share loss of $(0.02 )in the prior year
- RadNet reduced Total Debt during the quarter by $5.5 million
- As previously disclosed, results were significantly impacted by severe weather conditions in the East Coast during January and February; per day volumes improved in March and April
RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 190 fully-owned and operated outpatient imaging centers, today reported financial results for its first quarter of 2010.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, "The unusually severe weather we experienced in our East Coast Operations had an extraordinary effect on our center level volumes in our Mid-Atlantic, New York and New Jersey operations in January and February. Because the vast majority of our expenses are fixed and were higher relative to the first quarter of 2009 because of acquisitions we completed over the last twelve months, our lower revenue flowed directly through to our Adjusted EBITDA and Net Income. Based on more normalized per-day procedural volumes we experienced in March and April, we estimate that we lost approximately $4.5 million of revenue and $3.5 million of EBITDA in January and February."
Financial Results
For the first quarter of 2010, the Company reported Revenue, Adjusted EBITDA and Net Loss of $124.2 million, $20.5 million and $(4.1) million, respectively. Revenue decreased $3.8 million (or 3.0%), Adjusted EBITDA decreased $5.8 million (or 22.1%) and Net Loss increased $3.3 million, respectively, over the first quarter of 2009. Net Loss for the first quarter was $(0.11) per share, compared to a Net Loss of $(0.02) per share in the first quarter of 2009 (based upon a weighted average number of fully diluted shares outstanding of 36.4 million and 35.9 million for these periods in 2010 and 2009, respectively). Affecting Net Income in the first quarter of 2010 were certain non-cash expenses and non-recurring items including: $819,000 of non-cash employee stock compensation expense resulting from the vesting of certain options and warrants; $132,000 of severance paid in connection with headcount reductions related to cost savings initiatives from previously announced acquisitions; $104,000 loss on the disposal of certain capital equipment; and $670,000 of non-cash Deferred Financing Expense related to the amortization of financing fees paid as part of our existing credit facilities.
For the first quarter of 2010, as compared to the prior year's first quarter, MRI volume increased 1.7%, CT volume decreased 6.1% and PET/CT volume decreased 2.2%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, decreased 0.4% over the prior year's first quarter. On a same-center basis, including only those centers which were part of RadNet for both the first quarters of 2010 and 2009, MRI volume decreased 5.5%, CT volume decreased 10.9% and PET/CT volume decreased 2.3%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, decreased 5.3% over the prior year's same quarter.