RadNet, which operates medical diagnostic imaging centers, has reported a decrease in net losses and an increase in revenue for its financial results for the first quarter of 2008, which ended March 31.
For its first quarter, RadNet reported revenue of $114.7 million, an 8.4 percent increase from $105.8 million in the same quarter last year. The Los Angeles-based company said the results reflect improved volume in existing centers as well as the contribution of acquisitions and operating initiatives.
Net loss for the first quarter was $5.5 million, compared to a net loss of $5.6 million for the quarter.
Factors affecting net income in the first quarter were certain non-cash expenses and non-recurring items including: $951,000 non-cash loss on the fair value of interest rate hedges related to the company's credit facilities; $700,000 expense related to a payment to the settlement of a business dispute; and $532,000 of deferred financing expense related to the amortization of financing fees paid as part of the company’s $405 million credit facilities drawn down in November 2006 in connection with the Radiologix acquisition and the incremental term loans and revolving credit facility arranged in August 2007 and February 2008.
Howard Berger, MD, chairman and CEO of RadNet said the company made investments in the first quarter related to acquisitions and new initiatives, which will set the stage for significant improvement in its financial performance during the rest of the year.
“Our results exclude contributions from the acquisition of five imaging centers from Insight Health, our Breastlink breast oncology acquisitions and related initiatives and our new interventional radiology and imaging center in Rancho Mirage, Calif.," said Berger. "All of these acquisitions and initiatives should contribute materially to our second quarter and subsequent quarters."