Radnet Q3 2023 Earnings Report
Key Takeaways
RadNet reported a strong third quarter in 2023, achieving record revenue and increased Adjusted EBITDA. The company saw growth in both its Imaging Center and AI segments, and expanded its partnership with Cedars-Sinai. RadNet also increased its 2023 guidance range for Adjusted EBITDA for the third time this year.
Imaging Center segment Revenue increased 14.3%, driven by 8.6% aggregate and 4.2% same center procedural volume growth.
Imaging Center segment Adjusted EBITDA increased 20.3% as compared with last year’s third quarter, resulting in Imaging Center margin expansion from 14.4% to 15.1%.
AI segment revenue increased by 221% from last year’s third quarter, driven by the launch of the Enhanced Breast Cancer Detection (EBCD) mammography offering.
Expanded outpatient radiology partnership with Cedars-Sinai, establishing a new joint venture and broadening an existing one, increasing patient access to outpatient radiology.
Radnet
Radnet
Forward Guidance
RadNet increased its guidance level for Adjusted EBITDA to reflect continued strong operating performance, driven by strong procedural volumes, revenue, and improved margins through active expense management. The company also raised its capital expenditure guidance range to account for reinvestment of cash flow into expanding capacity, de novo facilities, hospital joint ventures and information technology solutions.
Positive Outlook
- Strong procedural volumes and revenue growth.
- Improved margins through active expense management.
- Aggressive reinvestment of cash flow into expansion.
- Continued growth in the AI segment.
- Expansion of health system partnerships.