RadNet (NASDAQ: RDNT) reported Q1 EPS of $0.04, $0.07 better than the analyst estimate of ($0.03). Revenue for the quarter came in at $315.3 million versus the consensus estimate of $294.92 million.

• Revenue increased 12.0% to $315.3 million in the first quarter of 2021 from $281.6 million in the first quarter of 2020
• Adjusted EBITDA(1) increased 123.4% to $45.5 million in the first quarter of 2021 from $20.4 million in the first quarter of 2020; Adjusting for $6.2 million of grants received under the CARES Act Provider Relief Fund during the quarter, Adjusted EBITDA(1) was $39.3 million during the first quarter of 2021 (an increase of 92.8% from the first quarter of 2020)
• Diluted Net Income per share was $0.18 in the first quarter of 2021 as compared with diluted net loss per share of $(0.33) from the prior year’s first quarter; Adjusting for extraordinary items impacting Net Income in the quarter, including grants under the Cares Act, the financial impact of our cash flow hedge and one-time COVID-19-related retention bonuses paid to team members and physicians, diluted Adjusted Earnings Per Share(3) was $0.04 during the first quarter of 2021
• Aggregate procedural volumes increased 8.4%; Same-center procedural volumes increased 5.0% compared to the first quarter of 2020
• Subsequent to quarter end, RadNet received FDA clearance for its DeepHealth AI mammography triage software and completed a refinancing transaction of its senior credit facilities
• RadNet revises full-year 2021 guidance levels to increase Revenue, Adjusted EBITDA(1) and Free Cash Flow ranges

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “Despite some disruptive winter weather conditions in February on the east coast, we produced record first quarter results. Our Revenue, Adjusted EBITDA(1) and Net Income performance was stronger than any other first quarter in our company’s history. Revenue increased 12% and Adjusted EBITDA(1) more than doubled from last year’s first quarter. Furthermore, even after adjusting for the impact of a variety of extraordinary items in the quarter such as stimulus money we received, a substantial valuation gain on our interest rate swaps and one-time COVID-19-related retention bonuses paid to team members and physicians, we had record first quarter earnings per share in a quarter that is typically our most challenging seasonal quarter.”

Dr. Berger continued, “Our performance was the result of the combination of cost savings measures that we instituted during the COVID-19 period, certain investments we made (particularly in 3D mammography) and the return to more normalized procedural volumes as the states in which we operate began to loosen COVID-19 restrictions. COVID-19 has also been a catalyst for tuck-in acquisitions. In February and March, we completed ten center acquisitions on the east coast, which we expect to contribute to the performance of the remaining quarters of this year.”

“Given the positive trends we are experiencing in our business and the strong financial performance of the first quarter, we have elected to revise our guidance levels upwards in anticipation of financial results that we project to exceed our original expectations. We have increased 2021 guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow. We also reduced our Cash Interest Expense guidance range to reflect the lower interest cost from our recently completed refinancing transaction,” added Dr. Berger.

Dr. Berger continued, “On April 19th, we announced that we received FDA clearance for our DeepHealth AI mammography triage software, Saige-QTM, which is a worklist prioritization tool that enables radiologists to more effectively manage their mammography cases with the use of artificial intelligence. The software identifies suspicious screening exams that may need prioritized attention, allowing radiologists to optimize their workflow for efficiency and accuracy. We are at the beginning stages of deploying this technology across our various markets and expect that most of our breast imagers will have the benefit of this AI before year end. We expect RadNet will benefit from productivity enhancements, while providing our patients and payors with more accurate interpretations, fewer unnecessary patient call-backs and the possibility of detecting breast disease one to two years earlier than otherwise possible.”

“Lastly, in April, we completed a successful refinancing transaction of our senior term loan and revolving credit facility. Based upon our current and anticipated future leverage ratio, we anticipate an annual interest cost savings of up to $6 million, and we have secured significantly increased financial and operating flexibility to grow our business and execute our business plan,” added Dr. Berger.

GUIDANCE:

RadNet sees FY2021 revenue of $1.275-1.325 billion, versus the consensus of $1.27 billion.

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