National outpatient diagnostic imaging services company RadNet Inc. (RDNT:NASDAQ), which provides services via a network of 331 outpatient imaging centers, today announced financial results for its fourth quarter and full year of 2020 ended December 31, 2020.
The company's President and CEO Dr. Howard Berger remarked, "Despite a continuing impact from COVID-19, our results in the fourth quarter were the strongest quarterly performance in our company's history...Improved reimbursement from both private and capitated payers and our widespread adoption of 3D mammography, or tomosynthesis, were responsible for our achieving the revenue growth in the quarter. Our mammography volume, alone, during Q4/20 increased 11.7% from Q4/19."
The company reported that for Q4/20 total revenue increased by 2.5% to $308.5 million, compared to $300.84 million in Q4/19. For the same corresponding period, the firm stated that adjusted EBITDA increased 8.1% to $50.7 million.
The firm indicated that in Q4/20 it posted net income of $6.0 million, or $0.11 per diluted share, compared to net income of $10.4 million, or $0.21 per diluted share in Q4/19. The company noted that the per share calculations were based upon weighted average diluted shares outstanding of 52.2 million in Q4/20 and 50.6 million in Q4/19.
The firm commented that in Q4/20, MRI volume decreased 1.8%, CT volume increased 2.4% and PET/CT volume decreased 2.8%, compared to Q4/19. The firm added that overall volume, which includes routine imaging exams such as X-ray, ultrasound, mammography and other exams, decreased 0.5% in Q4/20 versus Q4/19.
The company stated that for FY/20, total revenue including provider relief funding totaled $1,098 million, compared to $1,154 million in FY/19 and that for the same period adjusted EBITDA decreased by $24.7 million to $139.5 million.
RadNet reported that for FY/20 it posted a net loss of $14.8 million, or $0.29 per diluted share, versus net income of $14.8 million, or $0.29 per diluted share in FY/19. The company noted that the per share data was calculated using weighted average number of diluted shares outstanding of 50.9 million in FY/20 and 50.2 million in FY/19.
The firm advised that in FY/20, MRI volume decreased 11.9%, CT volume decreased 6.8% and PET/CT volume decreased 4.1%., compared to FY/19. Over the same timeframe the company noted that overall volume taking into account routine imaging exams including X-rays, ultrasounds, mammography and other imaging services dropped by 12.9% versus the prior year.
The company additionally provided some forward guidance and stated that for FY/21 it expects total net revenue to be in the range of $1,250-1,300 million and adjusted EBITDA of $180-190 million.
"For H2/20, we exceeded $600 million of revenue and $96 million of adjusted EBITDA. This performance is the result of a strong recovery of our procedural volumes and the significant impact from cost reduction programs we instituted throughout the COVID-19 period. Our guidance ranges for FY/21 are built with this momentum in mind and the assumption that our business will continue to strengthen as COVID-19 restrictions are lifted in the states in which we operate." Dr. Berger added.
RadNet is based in Los Angeles, Calif., and owns and/or operates a network of 331 outpatient imaging centers in the U.S. The company provides freestanding, fixed-site diagnostic imaging services in several key markets including California, Maryland, Delaware, Florida, New Jersey, New York and Arizona. The company performs greater than 8 million outpatient imaging procedures annually and employs around 8,300 people including technicians and more than 500 affiliated radiologists.
RadNet started the day with a market capitalization of around $977.0 million with approximately 51.64 million shares outstanding and a short interest of about 2.0 %. RDNT shares opened 2.6% higher today at $19.42 (+$0.50, +2.64%) over Friday's $18.92 closing price and reached a new 52-week high price this morning of $23.035. The stock has traded today between $19.17 and $23.035 per share and is currently trading at $22.18 (+$3.26, +17.23%).
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