Boston, MA 05/09/2014 (wallstreetpr) – RadNet Inc. (NASDAQ:RDNT) reported its first quarter financial results today that succeeded to exceed the analyst estimate in terms of EPS but did not match on the revenue basis.
Beats In EPS; Trails In Revenue
RadNet Inc. (NASDAQ:RDNT) reported earnings per share of $(0.03), which came in higher than the market consensus of $(0.06). However, revenue for the quarter stood at $168.9 million as against the market expectations of $173.53 million. Despite of an approximate $8-$10 million negative impact on revenue arising due to severe weather and Medicare settlement cuts, the company’s adjusted EBITDA rose 8.2% to $27.7 million, as against $25.6 million in the previous year’s quarter. The company noted that its cost curtailment steps and strong performance from procedural volumes apart from its northeast operations helped to perform better than expected.
Raised 2014 Guidance
The strong growth during the quarter led RadNet Inc. (NASDAQ:RDNT) to raise its guidance for several metrics for the year 2014. The company raised its adjusted EBITDA guidance from $110-$120 million to $112-$122 million, While decreased the cash Interest Expense from $38-$42 million to $34-$38 million. The company kept the guidance of revenue for the year 2014 same as earlier, that is in between $700-$730 million, whereas the market guidance for the revenue is at $713 million.
RadNet Inc. (NASDAQ:RDNT) said that the growth will be mainly driven by increasing patient volume through prevailing centers, added capitation contracts and increased joint venture partnerships with health systems and hospitals like the one it recently announced with Kennedy Health System. With the implementation of Information Technology solutions, the company realized $1.8 million in Meaningful Use government incentive. Additionally, the company anticipates adding another $6 million of these government incentives over a period of next three years.
A day earlier, the company had formally announced the partnership with Baltimore Ravens for providing imaging services.
