Acquisitions and price increases helped imaging services provider RadNet to a small increase in revenue in its first quarter. Declines in same-store and aggregate imaging volumes caused by the COVID-19 pandemic led to a larger net loss, however.
For the period (end-March 31), RadNet had revenue of $281.6 million, up 3.7% from the $271.5 million in the first quarter of 2019. The company credited the revenue gain to contributions from its acquisitions of Kern Radiology and Zilkha Radiology, as well as price increases from capitation and fee-for-service payors.
RadNet estimates that the pandemic impacted first-quarter revenue by $25 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) by approximately $14 million relative to its original operating budget. The firm had a net loss of $14 million, compared with a net loss of $1.9 million a year ago.
Thanks to extensive cost-saving and cash conservation measures including staff furloughs and salary reductions, RadNet said that it will have little to no cash burn through the end of the second quarter and that it has approximately $50 million in cash as of April 30. It also hasn't tapped its $137.5 million revolving credit facility and could remain undrawn on its revolving credit facility by the end of the year.
The company also said that it has experienced increased procedural volumes in recent weeks as certain cities and counties begin lifting stay-at-home restrictions.
