Revenue during the quarter grew 7.81 percent to $224.64 million from $208.37 million in the previous year period. Gross margin for the quarter contracted 151 basis points over the previous year period to 14.20 percent. Total expenses were 94.46 percent of quarterly revenues, up from 91.73 percent for the same period last year. That has resulted in a contraction of 273 basis points in operating margin to 5.54 percent.

Operating income for the quarter was $12.45 million, compared with $17.23 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $35.89 million compared with $35.33 million in the prior year period. At the same time, adjusted EBITDA margin contracted 98 basis points in the quarter to 15.97 percent from 16.96 percent in the last year period.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am pleased with our results and the progress we made this quarter. As compared with last year’s third quarter, our business demonstrated Revenue and EBITDA growth as well as positive same center revenue and procedural increases. This is the tenth quarter in a row where we’ve experienced same center procedural growth, our industry’s best indicator of organic expansion. Additionally, sequentially from our first and second quarters of this year, we have been able to methodically improve our Revenue and EBITDA performance. This improvement is an indication, in a year where we completed no material acquisitions, that our focus on operational excellence is paying dividends.”

Radnet projects revenue to be in the range of $870 million to $910 million for financial year 2016.

The company has spent $59.03 million cash to meet investing activities during the nine month period as against cash outgo of $43.65 million in the last year period. It has incurred net capital expenditure of $52.05 million on net basis during the nine month period, up 36.65 percent or $13.96 million from year ago period.

Cash flow from financing activities was $4.22 million for the nine month period, down 89.27 percent or $35.14 million, when compared with the last year period.

Cash and cash equivalents stood at $0.36 million as on Sep. 30, 2016, down 99.01 percent or $35.70 million from $36.05 million on Sep. 30, 2015.

Working capital drops significantly
RadNet, Inc has witnessed a decline in the working capital over the last year. It stood at $85.11 million as at Sep. 30, 2016, down 28.96 percent or $34.70 million from $119.81 million on Sep. 30, 2015. Current ratio was at 1.56 as on Sep. 30, 2016, down from 1.88 on Sep. 30, 2015.

Days sales outstanding were almost stable at 71 days for the quarter, when compared with the last year period.