RadNet Swings To Loss In Q3; Cuts Adj. EBITDA Outlook

(RTTNews) - Operator of medical diagnostic imaging services RadNet, Inc. (RDNT) Monday reported loss for the third quarter over profit in the same period last year, despite a rise in revenue. Further, the company lowered its 2013 forecast for adjusted EBITDA.

"We have been experiencing pressured reimbursement and lower than anticipated utilization all year," said the California-based company in a statement today.

The company posted net loss of $467,000, or $0.01 per share, compared with a profit of $5 million, or $0.13 per share, a year earlier. The company said the results have been adjusted for a $2.8 million or 7 cents a share of gain in the last-year quarter from the deconsolidation of a joint venture.

Three analysts polled by Thomson Reuters estimated the company's profit to be $0.07 for the quarter. Analysts' estimates typically exclude one-time items.

In order to combat lower utilization and pricing of its imaging services, the company plans to cut costs to the tune of $30 million. Benefits from cost savings are expected accrue during 2014. "These cuts are the result of our continual efforts to mitigate industry pressures," said RadNet.

For the three months to September, the adjusted EBITDA declined to $25.4 million from $28.6 million a year earlier.

RadNet's revenue increased to $175.2 million from $160.5 million a year earlier. Analysts had estimated revenue to be $174.41 million for the quarter. Net service fee revenue, the primary source of revenue for the company, rose to $158.3 million from $145.8 million a year earlier.

Chiefly owing to a 3.8 percent decline in same-center revenue, the company slashed its adjusted EBITDA forecast for fiscal 2013 to $105 million-$110 million, down from the previous forecast of $120 million -$130 million.

Friday, the stock closed at $2.35 on the Nasdaq.