RadNet Reports Record Revenue and EBITDA

By Bobby Samwell • Sunday, August 11 07:58 • Permanent Link

Radnet, Inc. has reported its second-quarter financial results, revealing record quarterly revenue and adjusted EBITDA, with significant increases in various metrics compared to the same period last year. Here are the key highlights:

Total company revenue increased by 13.9% to $459.7 million in the second quarter of 2024 from $403.7 million in the second quarter of 2023. Revenue from the digital health reportable segment saw a significant increase of 36.4% to $15.8 million in the second quarter of 2024 from $11.6 million in the second quarter of 2023.
Digital health revenue growth was driven in part by a substantial $3.2 million (136.6%) increase in AI revenue, which climbed to $5.6 million during the second quarter of 2024 from $2.4 million in the second quarter of 2023.
Total company adjusted EBITDA was $72.3 million in the second quarter of 2024, a 19.7% increase from $60.4 million in the second quarter of 2023. The digital health reportable segment's adjusted EBITDA increased by an impressive 135.2% to $3.3 million in the second quarter of 2024 from $1.4 million in the second quarter of 2023.
Adjusted EBITDA margins for the total company increased by 76 basis points to 15.7% in the second quarter of 2024 compared with 15.0% in the second quarter of 2023.
Radnet revised its full-year 2024 guidance ranges to increase revenue, adjusted EBITDA, and free cash flow levels.
The company had a cash balance of $741.7 million and a net debt to adjusted EBITDA ratio of 1.1 as of June 30, 2024.
Aggregate procedural volumes increased by 9.2%, and same-center procedural volumes increased by 6.1% compared with the second quarter of 2023.
Completed a successful refinancing of the senior secured term loan and revolver, reducing borrowing costs, extending maturities, and funding approximately $168 million of additional cash to the balance sheet.
MRI volume increased by 16.0%, CT volume increased by 14.8%, and PET/CT volume increased by 20.4% in the second quarter of 2024 compared to the same period last year.
For the first six months of 2024, Radnet reported total company revenue of $891.4 million and adjusted EBITDA of $130.8 million, representing increases of 12.2% and 20.4%, respectively, compared to the first six months of 2023.
The company also updated its 2024 guidance ranges for its imaging center and digital health segments, showing increased revenue and adjusted EBITDA levels.

Radnet President and CEO, Dr. Howard Berger, expressed confidence in the company's performance, citing strong growth in both the imaging center and digital health segments, and emphasized the positive trends experienced in various aspects of the business. He also noted the company's focus on expanding capacity and continuing development within the digital health segment.

These results reflect Radnet's successful financial performance and its optimistic outlook for the remainder of 2024, as the company continues to pursue growth and expansion in its key business segments. Following these announcements, the company's shares moved 1.9%, and are now trading at a price of $62.83. If you want to know more, read the company's complete 8-K report here.

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