RadNet, Inc. (RDNT), an operator of regional networks of diagnostic imaging facilities, reported Monday a narrower loss for the fourth quarter, reflecting more than 25% growth in revenues.
The Los Angeles, California-based company's quarterly net loss narrowed to $5.35 million or $0.15 per share from $11.7 million or $0.33 per share in the earlier year.
On average, five analysts polled by Thomson Reuters expected the company to report breakeven per share for the quarter. Analysts' estimates typically exclude special items.
Net revenues grew to $128.26 million from $102.42 million in the same period last year. Five analysts had a consensus revenue estimate of $129.15 million for the quarter.
Total operating expenses increased to $121.19 million from $104.48 million a year ago.
During the fourth quarter, the company reduced its outstanding debt by $13.8 million through repaying most of the outstanding balance on its $55 million revolving line of credit that existed at September 30, 2008 and through reductions in capital lease and first lien debt.
"We have effectively been able to reduce the cost of our debt in a way that avoided the expense and uncertainty of a refinancing. Our hope is that the reduction in cash interest expense will allow us to deleverage the company more rapidly and reach GAAP profitability," said Mark Stolper, executive vice president and chief financial officer.
For the fiscal year, the company's net loss narrowed to $12.84 million or $0.36 per share from $18.13 million or $0.52 per share in the previous year. Net revenues increased to $502.12 million from $425.47 million in the prior year.
Looking ahead to fiscal 2009, RadNet expects revenues in the range of $515 million - $545 million. Analysts expect revenues of $539.02 million for the year.
Howard Berger, president and chief executive officer commented, "Furthermore, we will be able to lower our capital expenditures in 2009 as a result of the aggressive capital upgrade program we completed in 2007 and 2008. This should increase our free cash flow and accelerate our deleveraging."
RDNT closed Friday's regular trading at $1.02 on the Nasdaq.
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