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Dec 31, 2022
Radnet Q4 2022 Earnings Report
RadNet reported record revenue driven by high procedural demand and improved labor market conditions. The company is expanding its business through new center construction and acquisitions, and making strides in commercializing AI investments.
Key Takeaways
RadNet reported a strong fourth quarter with record revenue of $383.9 million, a 15.2% increase year-over-year, and Adjusted EBITDA of $57.2 million. The company's performance was driven by high procedural demand and improved labor market conditions. RadNet is focused on expanding its business and commercializing its AI investments, expecting profitability in the AI segment by 2024.
RadNet's Q4 2022 revenue increased by 15.2% year-over-year to $383.9 million.
Adjusted EBITDA for Q4 2022 was $57.2 million, compared to $51.7 million in the prior year period.
The company reported a net loss of $934,000 for Q4 2022, an improvement from the $3.8 million net loss in Q4 2021.
RadNet is expanding its business through new center construction and acquisitions, and expects its AI segment to be profitable in 2024.
Forward Guidance
RadNet anticipates strong results in 2023, demonstrating improvement in all financial and operating metrics. Revenue growth from imaging center operations is projected between 7% and 10%, and Adjusted EBITDA growth from imaging center operations is expected between 5% and 10%.
Positive Outlook
- Projected Revenue growth from imaging center operations of between 7% and 10%.
- Adjusted EBITDA growth from imaging center operations of between 5% and 10%.
- Growth is projected to result from same-center growth, the contribution of various de novo locations opened in the second half of 2022 and scheduled to open throughout 2023.
- Reimbursement increases from private and capitated payers.
- New and expanded health system joint ventures and the further contribution from acquisitions completed at various times during 2022.
Challenges Ahead
- Adjusted EBITDA guidance for 2023 excludes anticipated Adjusted EBITDA losses of approximately $10 million from our AI division.
- AI division losses will be net of approximately $16 million to $18 million of anticipated Revenue from the Enhanced Breast Cancer Detection (EBCD) mammography program.
Historical Earnings Impact
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