RadNet, Inc. (RDNT) saw its loss narrow to $1.21 million, or $0.03 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.40 million, or $0.03 a share.
Revenue during the quarter grew 5.83 percent to $229.01 million from $216.39 million in the previous year period. Gross margin for the quarter expanded 125 basis points over the previous year period to 10.29 percent. Total expenses were 97.05 percent of quarterly revenues, down from 98.62 percent for the same period last year. This has led to an improvement of 157 basis points in operating margin to 2.95 percent.
Operating income for the quarter was $6.75 million, compared with $2.98 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $28.66 million compared with $27.09 million in the prior year period. At the same time, adjusted EBITDA margin was almost stable in the quarter to 12.52 percent when compared with the last year period.
Dr. Howard Berger, president and chief executive officer of RadNet, commented, "I'm very pleased with the improvement of our base imaging center business in this first quarter as compared with last year's first quarter, particularly when adjusting for year-over-year changes in two items that more favorably benefited last year's first quarter. In the first quarter of last year, we recognized $2.8 million of Other Income from Meaningful Use incentives as a result of our adoption of eRAD software and $825,000 of Revenue from our management contract in the sovereign nation of Qatar. In this year's first quarter, we recognized only $600,000, combined, for these two sources. Adjusting both quarters by removing contributions from Meaningful Use and Qatar activities, Revenue from core operations increased 6.1% in this year’s first quarter and EBITDA increased 19.5%."
For financial year 2017, RadNet, Inc. expects revenue to be in the range of $895 million to $925 million.
Operating cash flow improves significantly
RadNet, Inc. has generated cash of $30.90 million from operating activities during the quarter, up 47.38 percent or $9.93 million, when compared with the last year period.
The company has spent $33.97 million cash to meet investing activities during the quarter as against cash outgo of $27.80 million in the last year period.
The company has spent $9.28 million cash to carry out financing activities during the quarter as against cash inflow of $6.80 million in the last year period.
Cash and cash equivalents stood at $8.29 million as on Mar. 31, 2017, up 1,922.93 percent or $7.88 million from $0.41 million on Mar. 31, 2016.
Working capital drops significantly
RadNet, Inc. has witnessed a decline in the working capital over the last year. It stood at $49.51 million as at Mar. 31, 2017, down 40.66 percent or $33.92 million from $83.44 million on Mar. 31, 2016. Current ratio was at 1.31 as on Mar. 31, 2017, down from 1.54 on Mar. 31, 2016.
Days sales outstanding went down to 67 days for the quarter compared with 73 days for the same period last year.
Debt comes down marginally
RadNet, Inc. has recorded a decline in total debt over the last one year. It stood at $635.85 million as on Mar. 31, 2017, down 1.86 percent or $12.04 million from $647.89 million on Mar. 31, 2016. Total debt was 74.46 percent of total assets as on Mar. 31, 2017, compared with 76.61 percent on Mar. 31, 2016. Debt to equity ratio was at 11.97 as on Mar. 31, 2017, down from 17.26 as on Mar. 31, 2016. Interest coverage ratio improved to 0.66 for the quarter from 0.28 for the same period last year.
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