Boston, MA 05/12/2014 (wallstreetpr) – The winter weather conditions impacted the performance of the majority of companies badly. RadNet Inc. (NASDAQ:RDNT), the diagnostic image service provider, was also expecting incurring losses of $8-$10 million in revenue and adjusted EBITDA of $5-$7 million in the first quarter of 2014. But, the Company was able to manage and report positive growth over revenue and profitability during 1Q2014.
Positive results with increasing procedural volumes
In 1Q2014, RadNet Inc. (NASDAQ:RDNT)’s revenues were $168.9 million, down by 2.3% compared to the revenues reported during 1Q2013, as a result of incurring losses from bad weather. However, strong volume outside northeast operations benefited the imaging provider.
More than 8 million new patients enrolled into the healthcare delivery systems, and California alone enrolled more than 1.4 million new patients that increased the same center revenue by 4.2% compared to 1Q2013.
In addition, the savings due to cost reduction measures further increased the adjusted EBITDA by 8.2% over prior year period to $27.7 million. So, the operating margin improved by 160 basis points to 16.4%.
Growing diagnostic imaging market drive future growth
Factors like early prevention through screening, cost-effective imaging tools and wider acceptance by the physicians and payers drive the growth for diagnostic imaging market. Growing population with increased medical needs for aging people will further drive the demand for both routine and advanced imaging products and services.
Therefore, the national imaging market continues to grow and expects to be more than $100 billion. But, the market remains highly fragmented with large numbers of small to medium operators.
RadNet Inc. (NASDAQ:RDNT), a national leader, operated through a strong network of imaging centers (250) that offers high quality cost effective imaging services. So, the Company expects strong procedural volumes in its core markets including California in coming periods that help to increase same center revenue as well as margins. Therefore, the Company raised its guidance for FY2014 – revenue by $700-$730 million, adjusted EBITDA of $112-$122 million and free cash flow of $34-$44 million.
