RadNet Q3 EPS Beat Estimates Despite Certain COVID-19 Related Challenges; Raises FY21 EBITDA Outlook

RadNet Inc RDNT reports Q3 revenue of $332.7 million, +14% Y/Y, missing the consensus of $340.68 million.
Aggregate procedural volumes increased 15.6%; Same-center procedural volumes increased 10.0% Y/Y.
Adjusted EBITDA 36.0% to $62.3 million.
The company posted an adjusted EPS of $0.21, higher than $0.15 a year ago and beating the consensus of $0.18.
The company said that while it experienced a steady quarterly improvement in procedural volumes since the height of COVID-19 last year, certain modalities and geographies remain impacted.
Furthermore, challenges in workforce staffing continue to be a factor in its performance.
"Our leverage ratio of Net Debt to Trailing Twelve Month Adjusted EBITDA was 2.85x at Q3. As a result of this deleveraging, we have been able to lower our interest costs and decrease our cost of capital, positioning ourselves with the financial capacity to pursue opportunities and initiatives to grow our business in the coming quarters," said Howard Berger, President & CEO.
Guidance: RadNet Raised its FY21 adjusted EBITDA guidance to $210 million - $220 million from $200 million - $210 million.
Sales guidance remains unchanged at $1.3 billion - $1.35 billion, against the consensus of $1.34 billion.
The company also expects a free cash flow of $80 million - $90 million, up from $75 million - $85 million previously expected.
Price Action: RDNT shares closed higher by 6.86% at $34.60 on Friday.

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