RadNet Inc., a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services, today reported financial results for its fourth quarter and full year ended December 31, 2010.
For fourth quarter 2010, the company reported revenue of $145.3 million, up 10.2 percent from the fourth quarter of 2009; net income was reported at $3.3 million, or $0.09 per share, up 418.1 percent over the fourth quarter of 2009.
Dr. Howard Berger, president and CEO of RadNet, said the fourth-quarter results reflect the company’s solid business strategy and its resilience to broader industry factors compared to competitors.
“We are pleased to have ended 2010 with strong fourt- quarter results. In the fourth quarter, we obtained record Revenues, Adjusted EBITDA and Net Income. Our results illustrate the strength of our operating model. Relative size and operating efficiency remain increasingly important in our industry, particularly in what is a very challenged economic and reimbursement climate. While we observe the struggles of many of our competitors, our multi-modality approach and geographic clustering operating model has made RadNet a resilient and stable operating force in our industry,” Dr. Berger stated in the press release.
For full year 2010, RadNet reported revenue of $548.5 million, up 4.6 percent over the comparable quarter of last year; net loss for the full year was $(12.9) million.
The company also offered guidance for fiscal year 2011, with revenue forecasts between $575 million and $605 million; adjusted EBITDA between $110 million and $120 million; and free cash flow generation between $25 million and $35 million.
“Our guidance reflects our belief that we will continue to grow both our revenue and EBITDA in 2011,” Dr. Berger stated. “Although we see a stabilization of procedural volumes and have reason to believe we could experience some volume increases in 2011, the midpoint of our guidance assumes flat same center revenue as compared with 2010. We are anticipating Revenue and Adjusted EBITDA contribution in 2011 from the several acquisitions we completed at various times during 2010, as well as the recently announced acquisitions of Imaging On Call and Diagnostic Health businesses in 2011. We are also anticipating that we will achieve certain cost reductions necessary to substantially mitigate reimbursement cuts to which we are subject in 2011.”
Dr. Berger also noted his outlook for the operational results in the future.
“We are particularly excited about the future opportunities for RadNet. In the last few months, we have taken important strategic steps towards broadening the scope of our Company. Our entrances into the radiology software and teleradiology businesses have already begun to widen the scope of opportunities we are pursuing. In particular, we are excited about the potential for new partnerships with major hospital and health systems, where we are now able to offer a multi-disciplined approach of diversified radiology solutions. Furthermore, after experiencing an operating environment in 2010 where the general utilization of healthcare services was depressed, we have begun to see stabilization of procedural volumes at our centers. This provides us encouragement as we move further into 2011,” he stated.
For more information visit www.radnet.com
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