RadNet (NASDAQ: RDNT) reported Q2 EPS of $0.11, $0.02 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $244 million versus the consensus estimate of $239.47 million.

• Total Net Revenue increased 6.3% to $244.4 million in the second quarter of 2018 from $230.0 million in the second quarter of 2017
• Adjusted EBITDA(1) increased 3.0% to $38.2 million in the second quarter of 2018 from $37.0 million in the second quarter of 2017
• Earnings Per Share was $0.11 in the second quarter of 2018, flat from the second quarter of 2017
• Aggregate procedural volumes increased 3.7% and same center volumes increased 1.0% as compared with the second quarter of 2017
• RadNet enters into its first east coast capitation arrangement with EmblemHealth
• RadNet reaffirms previously announced 2018 guidance levels

Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet, commented, “After being severely impacting by adverse weather conditions during the first quarter, I am pleased that our performance has recovered so effectively. During the second quarter, we had strong revenue and EBITDA performance that is in line with our initial 2018 projections. We again are demonstrating steady and consistent revenue growth, positive same store procedural gains and higher EBITDA as compared with prior year periods.”

Dr. Berger continued, “We are excited about the remainder of 2018. We expect to be very active during the second half of this year in some of our largest joint ventures. We commenced operations with our partner MemorialCare in Southern California and will be looking to expand that joint venture beyond its current 34 centers. We will also look to grow our New Jersey Imaging Networks JV with RWJ Barnabas during the second half of this year through expanding its access to capital and evaluating strategic acquisition opportunities. For our consolidated operations, we will continue to focus on regional market business development, cost containment and evaluating strategic acquisitions.”

Dr. Berger added, “On October 1st, we are scheduled to commence operations for our recently announced capitation partnership with EmblemHealth in the New York Metropolitan area in 26 new locations. We will be investing into and expanding the size and capabilities of many of these locations to initially service about 200,000 patients who are part of Emblem’s AdvantageCare medical group as well as position us to provide imaging services to other Emblem and non-Emblem patient populations. This is an important strategic relationship for our company and we are excited to bring an alternative payment model to the east coast for diagnostic imaging. We expect to enjoy the same success with capitation on the east coast as we’ve had for over two decades with similar partnerships in California. We believe we are on the forefront of performance-based payment models and will look to grow these arrangements in the coming quarters.”

GUIDANCE:

RadNet sees FY2018 revenue of $945-970 million, versus the consensus of $956.98 million.

For earnings history and earnings-related data on RadNet (RDNT) click here.