RadNet Inc. (RDNT, Financial) filed Quarterly Report for the period ended 2009-06-30.
RadNet Inc. is a national market leader providing high-quality cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers. RadNet offers to its patients and referring physicians the full spectrum of diagnostic imaging exams including PET/CT MRI CT Nuclear Medicine Mammography Ultrasound and X-ray as well as numerous other procedures. RadNet utilizes best of breed technology to appropriately serve the medical communities in which it operates. RadNet Inc. has a market cap of $99.1 million; its shares were traded at around $2.69 with and P/S ratio of 0.2.
Net revenue, including only those centers which were in operation throughout the second quarters of both 2009 and 2008, increased $2.5 million, or 2.0%. This 2.0% increase is mainly due to an increase in procedure volumes. This comparison excludes revenue contributions from centers that were acquired or divested subsequent to April 1, 2008. For the three months ended June 30, 2009, net revenue from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $5.0 million. For the three months ended June 30, 2008, net revenue from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $1.3 million. Also excluded from the above comparison was $1.6 million from centers that were divested subsequent to April 1, 2008.
Salaries and professional reading fees, including only those centers which were in operation throughout the second quarters of both 2009 and 2008, decreased $1.5 million, or 2.8%. This 2.8% decrease is primarily due to cost cutting measures implemented in the third quarter of 2008. This comparison excludes contributions from centers that were acquired or divested subsequent to April 1, 2008. For the three months ended June 1, 2009, salaries and professional reading fees from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $2.1 million. For the three months ended June 30, 2008, salaries and professional reading fees from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $533,000. Also excluded from the above comparison was $799,000 from centers that were divested subsequent to April 1, 2008.
Building and equipment rental expenses, including only those centers which were in operation throughout the first quarters of both 2009 and 2008, increased $113,000, or 1.1%. This 1.1% increase is primarily due to the addition of equipment leases contracts at existing centers for capacity expansion at these centers. This comparison excludes contributions from centers that were acquired or divested subsequent to April 1, 2008. For the three months ended June 30, 2009, building and equipment rental expenses from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $535,000. For the three months ended June 30, 2008, building and equipment rental expenses from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $113,000. Also excluded from the above comparison was $87,000 from centers that were divested subsequent to April 1, 2008.
Medical supplies expenses, including only those centers which were in operation throughout the second quarters of both 2009 and 2008, increased $429,000, or 5.4%. This 5.4% increase is in line with procedure volumes and net revenues generated at these existing centers. This comparison excludes contributions from centers that were acqu
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RadNet Inc. is a national market leader providing high-quality cost-effective diagnostic imaging services through a network of fully-owned and operated outpatient imaging centers. RadNet offers to its patients and referring physicians the full spectrum of diagnostic imaging exams including PET/CT MRI CT Nuclear Medicine Mammography Ultrasound and X-ray as well as numerous other procedures. RadNet utilizes best of breed technology to appropriately serve the medical communities in which it operates. RadNet Inc. has a market cap of $99.1 million; its shares were traded at around $2.69 with and P/S ratio of 0.2.
Highlight of Business Operations:
Howard G. Berger, M.D. is our President and Chief Executive Officer, a member of our Board of Directors and owns approximately 18% of our outstanding common stock. Dr. Berger also owns, indirectly, 99% of the equity interests in BRMG. BRMG provides all of the professional medical services at the majority of our facilities located in California under a management agreement with us, and contracts with various other independent physicians and physician groups to provide the professional medical services at most of our other California facilities. We generally obtain professional medical services from BRMG in California, rather than provide such services directly or through subsidiaries, in order to comply with California\'s prohibition against the corporate practice of medicine. However, as a result of our close relationship with Dr. Berger and BRMG, we believe that we are able to better ensure that medical service is provided at our California facilities in a manner consistent with our needs and expectations and those of our referring physicians, patients and payors than if we obtained these services from unaffiliated physician groups. BRMG is a partnership of Pronet Imaging Medical Group, Inc. (99%), Breastlink Medical Group, Inc. (100%) and Beverly Radiology Medical Group, Inc. (99%), each of which are 99% or 100% owned by Dr. Berger. RadNet provides non-medical, technical and administrative services to BRMG for which it receives a management fee, per the management agreement. Through the management agreement and our relationship with Dr. Berger, we have exclusive authority over all non-medical decision making related to the ongoing business operations of BRMG. Based on the provisions of the agreement, we have determined that BRMG is a variable interest entity, and that we are the primary beneficiary as defined in Financial Accounting Standards Board (FASB) Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51 (FIN 46(R)), and consequently, we consolidate the revenue and expenses of BRMG. All intercompany balances and transactions have been eliminated in consolidation.Net revenue, including only those centers which were in operation throughout the second quarters of both 2009 and 2008, increased $2.5 million, or 2.0%. This 2.0% increase is mainly due to an increase in procedure volumes. This comparison excludes revenue contributions from centers that were acquired or divested subsequent to April 1, 2008. For the three months ended June 30, 2009, net revenue from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $5.0 million. For the three months ended June 30, 2008, net revenue from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $1.3 million. Also excluded from the above comparison was $1.6 million from centers that were divested subsequent to April 1, 2008.
Salaries and professional reading fees, including only those centers which were in operation throughout the second quarters of both 2009 and 2008, decreased $1.5 million, or 2.8%. This 2.8% decrease is primarily due to cost cutting measures implemented in the third quarter of 2008. This comparison excludes contributions from centers that were acquired or divested subsequent to April 1, 2008. For the three months ended June 1, 2009, salaries and professional reading fees from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $2.1 million. For the three months ended June 30, 2008, salaries and professional reading fees from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $533,000. Also excluded from the above comparison was $799,000 from centers that were divested subsequent to April 1, 2008.
Building and equipment rental expenses, including only those centers which were in operation throughout the first quarters of both 2009 and 2008, increased $113,000, or 1.1%. This 1.1% increase is primarily due to the addition of equipment leases contracts at existing centers for capacity expansion at these centers. This comparison excludes contributions from centers that were acquired or divested subsequent to April 1, 2008. For the three months ended June 30, 2009, building and equipment rental expenses from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $535,000. For the three months ended June 30, 2008, building and equipment rental expenses from centers that were acquired subsequent to April 1, 2008 and excluded from the above comparison was $113,000. Also excluded from the above comparison was $87,000 from centers that were divested subsequent to April 1, 2008.
Medical supplies expenses, including only those centers which were in operation throughout the second quarters of both 2009 and 2008, increased $429,000, or 5.4%. This 5.4% increase is in line with procedure volumes and net revenues generated at these existing centers. This comparison excludes contributions from centers that were acqu
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