RadNet reports Q EPS , consensus 0c

Reports Q1 revenue $431.7 , consensus $421.72M.Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “Despite experiencing some adverse impact from severe winter weather conditions during the first quarter, both the Imaging Center and newly established Digital Health reportable operating segments demonstrated strong growth and achieved first quarter record results. Total Company Revenue grew 10.5% as compared with last year’s first quarter to a record $431.7 million. The Digital Health segment Revenue of $14.7 million increased 32.3% from last year’s same quarter. The strong growth in Digital Health was, in part, driven by our AI businesses, whose Revenue increased 118% as compared with last year’s first quarter, mainly on the continuing success of the rollout of our Enhanced Breast Cancer Detection EBCD DeepHealth AI-powered screening mammography program.” “Improved reimbursement from commercial and capitated payors, ongoing efforts toward greater operating efficiency and effective cost controls resulted in an increase to Adjusted EBITDA(1) margins by 120 basis points over last year’s first quarter. We believe there is further room for improvement, especially as we continue to disproportionally grow the higher margin Digital Health businesses and lean into both clinical and generative AI,” added Dr. Berger. Dr. Berger continued, “At the end of the first quarter, we announced a new joint venture in the northern and eastern parts of the San Fernando Valley of Los Angeles with Providence Health System. As of quarter end, we had 137 of our 375 centers (or 36.5%) held in partnership with leading health systems.”