RadNet Inc. said Monday it had narrowed its fourth quarter loss, driven largely by a 25 percent increase in revenue at its diagnostic imaging facilities.
The Los Angeles company reported a narrower net loss of $5.35 million (-15 cents per share) in the quarter ended Dec. 31, compared with an $11.7 million loss (-33 cents) a year ago. Net revenue grew to $128 million.
Analysts surveyed by Thomson Reuters on average expected the company to report break even for the quarter on revenue of $129 million.
Radnet said it reduced its outstanding debt by $13.8 million by repaying most of the outstanding balance on its $55 million revolving line of credit and through reductions in capital lease and first lien debt.
The company said it intends to deleverage as much as possible in the next four quarters to reach profitability. "We have effectively been able to reduce the cost of our debt in a way that avoided the expense and uncertainty of a refinancing," said Chief Financial Officer Mark Stolper in a statement.
For the 2008 fiscal year, the company's net loss narrowed to $12.8 million (-36 cents) from $18.1 million (-52 cents) in 2007. Net revenue rose 18 percent to $502 million.
Looking ahead to fiscal 2009, the company expects revenue in the range of $515 million to $545 million. Analysts expect revenue of about $539 million.
Radnet shares closed down 4 cents, or 4 percent, to 98 cents on the Nasdaq.
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