Shares of RadNet Inc. fell more than 13 percent Monday after the operator of medical diagnostic imaging centers said it moved from a profit to a loss in the third quarter and lowered its full-year forecast.
The West Los Angeles company, which operates 246 imaging centers in California, New York and five other states, reported a net loss of $467,000 (-1 cent a share), compared with net income of $5 million (13 cents) in the same period a year earlier. Revenue rose 9 percent to $175 million.
Analysts surveyed by Thomson Reuters on average expected profit of 7 cents a share on revenue of more than $174 million.
Despite the revenue increase, RadNet said it had been experiencing lower-than-anticipated usage and tighter reimbursement rates at its centers all year. Not only have patients been moving to higher deductible health plans, encouraging them to utilize health care less frequently, Chief Executive Howard Berger said, but other patients appearing to be delaying treatments until the costs associated with the Affordable Care Act become more clear.
“The future release of this pent-up demand may benefit us significantly,” Berger said in a conference call with analysts, noting that daily patient volumes in October were better than in the year earlier.
Even so, the company plans to cut costs by about $30 million, including job cuts, the benefits of which are expected accrue in 2014. It cut its outlook for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to between $105 million and $110 million, down from an earlier forecast of $120 million to $130 million.
Shares closed down 32 cents, or 13.6 percent, to $2.03 on the Nasdaq.