RadNet, Inc. (RadNet), a diagnostic imaging company, has reported net revenues of $502.1 million for the full year of 2008, compared with the net revenues of $425.4 million in the previous year-end. It has reported a net income of $12.8 million, or $0.36 per share, for the full year of 2008, compared with net loss of $18.1 million or $0.52 per share, in the previous year-end.
Full year 2008 revenue up 18.0%, or $76.6 million, from $425.5 million in 2007.
Full year ended December 31, 2008, Adjusted EBITDA(1) was $98.4 million. This was an increase of 15.4%, or $13.1 million, from $85.3 million in 2007. 2008 Adjusted EBITDA(1) fell slightly short of the low end of the Company’s guidance range of $100 million to $115 million.
For the year 2008, as compared to 2007, MRI volume increased 13.6%, CT volume increased 7.4% and PET/CT volume increased 12.3%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 11.2% for the twelve months of 2008 over 2007.
“We are pleased with the strides we made in 2008. We exceeded revenue guidance and see strong revenues continuing into 2009. We are disappointed we fell short of our projected margins and intend to focus on ways in which we can reduce costs and make our business more efficient. We have identified areas where we believe we have opportunities to accomplish savings in 2009, including more efficient regional and center-level staffing and centralized purchasing,” said Dr. Howard Berger, president and chief executive officer.
Fourth Quarter Report
For the fourth quarter of 2008, RadNet reported Revenue and Adjusted EBITDA(1) of $128.3 million and $22.5 million, respectively. Revenue up 25.2% (or $25.8 million) and Adjusted EBITDA(1) increased 10.5% (or $2.1 million), respectively over the fourth quarter of 2007. Same center revenue(2), which measures revenue from operations only if they were open for the full fourth quarter of 2008 and 2007, increased 3.0 million, an increase of 2.73%.
For the fourth quarter of 2008, as compared with the prior year’s fourth quarter, MRI volume increased 19.2%, CT volume increased 10.0% and PET/CT volume increased 2.7%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 11.1% over the prior year’s fourth quarter.
Net Loss for the fourth quarter was $5.4 million, or $(0.15) per share, compared with a net loss of $11.7 million or $(0.33) per share in the fourth quarter of 2007 (based upon a weighted average number of fully diluted shares outstanding of 35.9 million and 35.1 million for these periods in 2008 and 2007, respectively).
“Our guidance reflects our belief that we will continue to grow both our revenue and EBITDA in 2009,” said Berger. “We anticipate doing this at the same time as we focus on generating free cash flow. We intend to deleverage the Company as much as we can over the coming four quarters. Given the public equity market capitalization of our Company today, our intention is to provide our shareholders an extremely attractive free cash flow yield.”