Too much of a good thing can be a bad thing, even when it comes to an increase in business.

Diagnostic imaging company RadNet Inc. reported such an influx of customers at its California centers during the first quarter that it strained the firm’s operations and increased expenses. Earnings announced last month suffered as a result, causing RadNet shares to sink 8.5 percent over the past week to $6.34, making it one of the biggest losers on the LABJ Stock Index. (See Page 38.)

The Westwood firm reported a first-quarter net loss of $4.6 million (-11 cents a share), compared with a net loss of $12.4 million (-31 cents) in the same period a year earlier. Revenue for the first quarter rose 7.3 percent to $181 million.

While that might seem rosy, analysts focused on adjusted earnings before interest, taxes, depreciation and amortization rather than net profit. RadNet often acquires new imaging facilities and it’s easier to take a more pure look at their profits without one-time losses and certain accounting practices clouding the picture, said Juan Molta, an analyst at B. Riley & Co.’s West L.A. headquarters.

Adjusted Ebitda for the first quarter was $20.2 million, compared with $27.7 million in the same period the previous year.

“Our West Coast volumes grew 17.4 percent in aggregate,” RadNet Chief Executive Howard Berger said during the firm’s earnings call. “This extraordinary growth in patient demand was unexpected and we struggled to service the higher patient flow throughout the quarter.”

Berger explained that the company had to bring in personnel and make substantial investments in operating infrastructure as a result of the increased traffic, which added about $2.4 million in expenses.

Molta said much of the increase in California business came through contracts in which RadNet is paid a fixed monthly amount for each member, who can use the services as often as they need. These patients used RadNet’s services more than the company had expected.

“It’s like all you can eat,” Molta said.