• Total Company Revenue: $459.7 million, an increase of 13.9% from the previous year.

• Adjusted EBITDA: $72.3 million, up 19.7% year-over-year.

• Imaging Center Revenue: $443.9 million, a 13.2% increase from last year.

• Digital Health Revenue: $15.8 million, up 36.4% from the previous year.

• Net Loss: $3 million, compared to a net income of $8.4 million in the previous year.

• Net Loss Per Share: Negative $0.04, compared to net income per share of $0.12 last year.

• Cash Balance: $741.7 million at the end of the second quarter.

• Net Debt: $301.6 million, including NJIN's debt and cash balance.

• Same-Center MRI Volume Increase: 11.7% year-over-year.

• Same-Center CT Volume Increase: 9.9% year-over-year.

• Same-Center PET/CT Volume Increase: 13.7% year-over-year.

• Overall Same-Center Volume Increase: 6.1% year-over-year.

• Days Sales Outstanding (DSO): 34.9 days, near a historic low.

• Capital Expenditures: $98.6 million year-to-date.

• Revised Revenue Guidance: Increased to $1.685 billion to $1.735 billion for 2024.

• Revised Adjusted EBITDA Guidance: Increased to $257 million to $260 million for 2024.

• Revised Free Cash Flow Guidance: Increased to $72 million to $80 million for 2024.

• Warning! GuruFocus has detected 8 Warning Sign with RDNT.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• RadNet Inc (NASDAQ:RDNT) reported record revenue and adjusted EBITDA for the second quarter of 2024, with total company revenue increasing by 13.9% compared to the previous year.

• The company's Digital Health segment saw significant growth, with revenue increasing by 36.4% and adjusted EBITDA by 135.2% year-over-year.

• RadNet Inc (NASDAQ:RDNT) successfully completed acquisitions in Houston, Texas, expanding its presence with 13 new centers, and is in the process of integrating these acquisitions.

• The company is experiencing a shift in modality mix towards advanced imaging, such as MRI, CT, and PET/CT, which have higher revenue per scan.

• RadNet Inc (NASDAQ:RDNT) has a strong cash position, ending the quarter with $741.7 million in cash and a net debt to adjusted EBITDA ratio of slightly more than one.

Negative Points

• RadNet Inc (NASDAQ:RDNT) reported a net loss of $3 million for the second quarter of 2024, compared to a net income of $8.4 million in the same quarter of the previous year.

• The company faces ongoing challenges with labor costs, which have increased due to the need to recruit and retain talent, impacting margins.

• There are potential Medicare reimbursement cuts proposed for 2025, which could result in a $6 million to $8 million revenue hit for RadNet Inc (NASDAQ:RDNT).

• The implementation of new de novo centers has been slower than anticipated, affecting the expected margin expansion.

• RadNet Inc (NASDAQ:RDNT) is still in the early stages of integrating its recent acquisitions and implementing its new DeepHealth operating system, which may take time to show financial benefits.