2009 Fiscal Year Guidance
Looking ahead For 2009 Fiscal Year, the company reaffirmed its revenue guidance of $515 million – $545 million. Additionally, Radnet reaffirmed adjusted EBITDA of $105 million – $115 million and capital expenditures of $30 million – $35 million for the year.
For the first quarter of 2009, as compared to the prior year’s quarter, MRI volume increased 14.8%, CT volume increased 12.4% and PET/CT volume increased 1.4%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 9.3% over the prior year’s quarter.
On a same-center basis, including only those centers which were part of RadNet for both the first quarters of 2009 and 2008, MRI volume increased 5.7%, CT volume increased 5.6% and PET/CT volume increased 1.0%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 2.8% over the prior year’s quarter.
$¬¬¬1.1 million non-cash loss on the fair value adjustments of interest rate swaps related to the Company’s credit facilities;
$670,000 of Deferred Financing Expense related to the amortization of financing fees paid as part of the Company’s $405 million credit facilities drawn down in November 2006 in connection with the Radiologix acquisition and the incremental term loans and revolving credit facility arranged in August 2007 and February 2008; and
$709,000 of non-cash employee stock compensation expense resulting from the vesting of certain options and warrants.
“We are pleased with our progress in the first quarter of 2009. In particular, we noted an increase in our EBITDA margins to 20.6% from our full-year 2008 margin of 19.6%. We are encouraged that some of our more recent operational and cost savings initiatives are beginning to pay dividends, as evidenced by a significant improvement in our bottom-line performance. We continue to see strong volumes in our markets and have yet to see a material negative impact on our business from the broader national economic troubles.” said Dr. Howard Berger, chairman and chief executive officer of RadNet.
“We are also pleased that in the first quarter of 2009, we reduced our Accounts Payable and Accrued Expenses by almost $10 million, and improved our working capital position by almost $5 million. Even taking this into consideration, our cash flow from operations this quarter was $19.4 million greater than the corresponding period last year. Because much of our capital needs for the year will have been satisfied by the end of the second quarter, we expect free cash flow in the second half of the year to exceed $25 million.” continued Dr. Berger.
Dr. Berger added, “Our industry continues to present us with unique opportunities for consolidation, which are deleveraging and immediately accretive. The acquisition we recently announced in New Jersey and Westchester, NY is an example of one such opportunity. While we remain highly selective regarding the transactions we pursue, we continue to believe that we are extremely well positioned to continue growing while deleveraging our balance sheet.”
