Radnet Posts Banner Year Financials for 2011
Radnet Inc., the largest imaging center operator in the United States, reported record year-end revenues this week based on annual 2011 financials. Last year, Radnet earned $619.8 million — up 12.3% from 2010 — and net income of $7.2 million, a $20.1 million increase from deficit earnings in 2010. Affecting net income last year were certain non-cash expenses and non-recurring items such as employee stock compensation, deferred financing expenses and severance pay, according to a press release announcing the latest financial statement. MRI volume increased 17.6%, CT volume increased 11.0% and PET/CT volume increased 3.2%, according to the report. By far, the vast majority of Radnet’s business involved routine imaging exams such as x-ray, ultrasound, mammography and other exams. Total volume in 2011 increased 13.1% compared to 2010. Radnet experienced record volume despite overall volume decreases in the industry as a whole, said Howard Berger, MD, Radnet president and CEO. “Good medicine makes good business,” Berger said during a conference call to investors this week. “We are focused on the present and the future. This year we will continue this exciting journey.” Berger said 2012 will be an important year for information technology as the company seeks to integrate its RIS and PACS systems. “We hope to have the systems in most or all of our centers by year end,” Berger said. “Will give us new capabilities and provide new features to patients and referring physicians.” Berger also said the company plans to leverage its market position to earn greater reimbursements from insurance companies. Radnet, which also offers teleradiology services and owns a PACS company, reported especially positive financial returns in the fourth quarter. Net income for the fourth quarter of 2011 was $4.5 million or 12 cents per share, compared to $3.3 million in the fourth quarter 2010. Radnet’s stock on the Nasdaq (RDNT) rose about a point on the positive financial news, up to $3.14 per share by close of the market on Thursday.