RadNet reports financial guidance for fiscal year 2010

RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers, today reported financial guidance for the fiscal year ending December 31, 2010.

2010 Fiscal Year Guidance

For its 2010 fiscal year, RadNet announces its guidance ranges as follows:

The above guidance incorporates the partial-year contribution of the acquisitions of Truxtun Medical Group (completed in April 2010), the New Jersey operating subsidiary of Health Diagnostics (expected to be completed in May 2010) and the recently completed acquisition of three centers purchased in a bankruptcy proceeding of Sonix Medical Resources, Inc. Also, as previously disclosed, incorporated into the guidance is an estimated $3 million to $4 million decrease to Revenue and EBITDA from lower Medicare Reimbursement associated with the 2010 Medicare Fee Schedule passed in November 2009 (as amended by the House of Representatives Reconciliation Bill passed in the first fiscal quarter of 2010).

"Our guidance reflects our belief that we will continue to grow our business in 2010 despite difficult reimbursement and economic climates," said Dr. Howard Berger, President and Chief Executive Officer of RadNet. "As we previously disclosed on our fourth quarter and full-year 2009 earnings call in March 2010, the guidance incorporates first quarter 2010 results that were significantly negatively impacted by severe weather conditions in our mid-Atlantic region, particularly in January and February. Our guidance further assumes a return to more normalized per-day procedural volumes, which we were very pleased to observe in March."

Dr. Berger added, "We will continue to follow a disciplined approach to making capital expenditures. We believe that we can maintain the high-quality of medical services and access to leading technology for which our centers are recognized in their respective markets, despite spending less money in 2010 than we did in 2009 for the base business. Our Free Cash Flow guidance, which is a proxy for the amount of cash our operations generate after we pay our cash interest expense and make capital expenditures, illustrates that we anticipate being able to make further acquisitions and/or repay senior term debt in 2010."