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Jun 30, 2020
Radnet Q2 2020 Earnings Report
RadNet's financial performance declined due to the impact of the COVID-19 pandemic, but showed signs of recovery towards the end of the quarter.
Key Takeaways
RadNet reported a decrease in revenue and adjusted EBITDA for the second quarter of 2020 compared to the previous year, primarily due to the impact of COVID-19 on procedural volumes. However, the company experienced a recovery in volumes towards the end of the quarter and implemented cost-saving measures to mitigate the impact of the pandemic.
Revenue decreased by 34.1% to $190.6 million compared to the second quarter of last year.
Adjusted EBITDA decreased by 47.6% to $22.6 million compared to the second quarter of last year.
Net Loss was $10.6 million, a decline of approximately $15.5 million from the second quarter of 2019.
Procedural volumes reached a low point in the second week of April but recovered to nearly 90% of pre-COVID-19 levels by the end of the quarter.
Radnet
Radnet
Forward Guidance
RadNet remains committed to executing its strategic objectives, including collaboration with Hologic, Inc. and pursuing accretive strategic acquisitions. The company expects further recovery in procedural volumes as the year progresses.
Positive Outlook
- Collaboration agreement with Hologic, Inc. to improve breast health and advance Artificial Intelligence.
- On track with DeepHealth division's plan to submit its first A.I. product for FDA review later this year.
- Actively pursuing accretive strategic acquisitions of targets impacted by COVID-19 market conditions.
- Optimistic about further recovery in procedural volumes as the year progresses.
- Aggressive cost-cutting measures and cash conservation strategies implemented during the pandemic.
Challenges Ahead
- Uncertainty surrounding the ongoing impact of the COVID-19 pandemic.
- Repayment of advances received from the Centers for Medicare and Medicaid Services and a west coast insurance company during the second half of the year.
- 25 facilities remain closed.
- MRI volume decreased 39.7%, CT volume decreased 31.6% and PET/CT volume decreased 17.6%.
- Overall volume decreased 43.7% over the prior year’s second quarter.