Loading...
•
Mar 31, 2020
Radnet Q1 2020 Earnings Report
RadNet reported financial results for the first quarter of 2020, demonstrating resilience through cost savings and cash conservation measures.
Key Takeaways
RadNet reported Q1 2020 financial results, including revenue of $281.6 million and a net loss of $16.4 million. The company implemented cost-saving measures, including facility rental restructuring, staff furloughs, and vendor payment adjustments, resulting in a strong liquidity position with approximately $50 million in cash as of April 30th and being undrawn on their revolving credit facility.
RadNet reported revenue of $281.6 million and a net loss of $16.4 million for the first quarter of 2020.
Aggressive cost-saving measures were implemented, including facility consolidation, staff furloughs, and vendor payment restructuring.
The company received almost $15 million under the CARES Act and almost $40 million of accelerated Medicare advance payments from CMS.
Procedural volumes experienced a low point in mid-April, down over 75% from the original 2020 budget, but have begun to increase as states permit non-emergent healthcare procedures.
Radnet
Radnet
Forward Guidance
RadNet anticipates little to no cash burn through the end of the second quarter and expects to be undrawn on their revolving credit facility with a strong cash balance at year-end, based on current volumes and projected recovery.
Positive Outlook
- Expense and cash conservation initiatives are expected to support financial stability.
- The company anticipates little to no cash burn through the end of the second quarter.
- Expectation to be undrawn on the revolving credit facility.
- Strong cash balance is expected at year-end.
- Potential M&A and expansion opportunities are emerging due to Covid-19 pressures.