All Med Deploys eRAD PACS
Nov 18 14
All Med has deployed eRAD PACS as part of its overall strategy to bring quality medical treatment to patients. eRAD, a subsidiary of RadNet, Inc. installed its PACS on a virtualized/cloud based infrastructure for All Med. The eRAD system enables the practice to manage a distributed network of acquisition sites as well as off-site radiologists. Underscoring the strength of its distributed architecture, eRAD provides flexible viewing options for All Med. "eRAD's HTML5 viewer allows to view studies across any platform--not necessarily for diagnostic purposes but so that can get access to it from anywhere.
RadNet and Kennedy Health System Announce the Start of Their Diagnostic Imaging Joint Venture and the Acquisition of Two Facilities in Southern New Jersey
Nov 10 14
RadNet, Inc. and Kennedy Health System announced the operational commencement of their previously announced multi-faceted Joint Venture in southern New Jersey, with the purchase of two outpatient facilities located at 157 Fries Mills Road, Turnersville, NJ and 999 Route 73 N, Marlton, NJ from Able Imaging. As previously announced, the Joint Venture -- Garden State Radiology Network, LLC -- was conceived to achieve several objectives. First, it establishes a cost effective, high quality medical imaging network that provides convenient access to the communities of southern New Jersey. This network will include Kennedy's outpatient imaging locations, RadNet's Haddon Heights imaging facility, the two newly acquired Able Imaging locations, along with the development of new southern New Jersey imaging facilities. The joint venture will also contract on behalf of its imaging network with regional payors, including commercial insurance companies, utilization and radiology benefit managers, workers' compensation carriers and all other health plans and local insurers. Lastly, it will seek to build or buy additional imaging centers or enter related healthcare businesses in southern New Jersey. This acquisition is an important step forward for the joint venture, as these centers are both full-service, multi-modality facilities featuring a 3 Tesla MRI, CT, digital mammography, bone densitometry, ultrasonography and digital radiographic services. The two newly acquired Able Imaging centers complement RadNet's Haddon Heights location and Kennedy Health System's Washington Township outpatient imaging facility, which includes the operation of PET/CT services.
RadNet, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Revised Earnings Guidance for the Year 2014; Provides Free Cash Flow Guidance for the Fourth Quarter of 2014
Nov 6 14
RadNet, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported total net revenue of $184,059,000 compared to $175,188,000 a year ago. Income from operations was $15,235,000 compared to $8,589,000 a year ago. Income before income taxes was $6,843,000 compared to loss before income taxes of $850,000 a year ago. Net income attributable to the company common stockholders was $4,451,000 or $0.10 per diluted share compared to net loss attributable to the company common stockholders of $467,000 or $0.01 per basic and diluted share a year ago. Adjusted EBITDA was $33,443,000 compared to $25,398,000 a year ago. Income before income taxes in the third quarter of 2014 was $0.16 per diluted share as compared with loss before income taxes of $0.02 per diluted share in the third quarter of 2013. Affecting net income in the third quarter of 2014 were certain noncash expenses and nonrecurring items, including the following: $433,000 of noncash employee stock compensation expense resulting from the vesting of certain options and restricted stock, $112,000 of severance paid in connection with headcount reductions related to cost savings initiatives, $1.3 million loss on the sale and disposal of equipment and tenant improvements and $1.3 million of combined noncash amortization and write-off of deferred financing expense and discount on issuance and refinancing of debt related to financing fees paid as part of existing credit facilities. In the third quarter, the company had cash capital expenditures, net of asset and imaging center dispositions of $6.3 million.
For the nine months, the company reported total net revenue of $532,017,000 compared to $524,648,000 a year ago. Income from operations was $38,429,000 compared to $29,899,000 a year ago. Loss before income taxes was $3,521,000 compared to income before income taxes of $1,794,000 a year ago. Net loss attributable to the company common stockholders was $2,829,000 or $0.07 per diluted share compared to net income attributable to the company common stockholders of $877,000 or $0.02 per diluted share a year ago. Net cash provided by operating activities was $34,043,000 compared to $42,510,000 a year ago. Purchase of property and equipment was $33,895,000 compared to $39,291,000 a year ago. Adjusted EBITDA was $94,513,000 compared to $80,993,000 a year ago. The company had $613.6 million of net debt.
For the full year of 2014, the company now expects revenue to be in the range of $730 million to $745 million against previous guidance of $700 million to $730 million. Capital expenditure is expected to be in the range of $50 million to $52 million against previous guidance of $40 million to $45 million. Cash interest expense is expected to be in the range of $40 million to $42 million against previous guidance of $38 million to $42 million. Free cash flow is expected to be in the range of $30 million to $36 million against previous guidance of $30 million to $40 million. Adjusted EBITDA is expected to be in the range of $123 million to $128 million against previous guidance of $110 million to $120 million.
Looking ahead to the fourth quarter of 2014, the company projects strong free cash flow, particularly driven by expectation of capital expenditures to approximate $6 million for the remainder of the year.