Lumexa Imaging Holdings (NASDAQ:LMRI) held its first-quarter earnings conference call on Tuesday. Below is the complete transcript from the call.
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The full earnings call is available at https://edge.media-server.com/mmc/p/6kxr7mqw/
Summary
Lumexa Imaging Holdings reported Q1 revenues of $253 million, a 3% year-over-year increase, with system-wide revenue growth at 4%.
Advanced modalities, especially PET and MRI, showed significant growth, with PET growing 23.1% year-over-year.
Two acquisitions and two de novo openings were completed, with plans to open 8 to 10 de novos this year to drive future growth.
The company is focusing on expanding its geographic footprint and ramping up new centers, supported by strategic joint ventures, notably with UPMC.
Q1 adjusted EBITDA was $51.2 million, flat year-over-year, impacted by weather-related disruptions and seasonal factors.
Future guidance remains strong with expected full-year revenue between $1.045 billion and $1.097 billion and adjusted EBITDA between $234 million and $242 million.
New leadership appointments aim to bolster growth and operational excellence.
The company is leveraging technology and AI to enhance operations and patient care, with a focus on expanding advanced imaging services.
A cybersecurity incident was disclosed, but it is not expected to have a material impact on business or financial results.
Full Transcript
OPERATOR
Thank you for standing by and welcome to Lumexa Imaging’s first quarter 2026 earnings call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there will be a question and answer session. To ask a question during this session, you’ll need to press star 11 on your telephone. If your question has been answered and you’d like to remove yourself from the queue, simply press star 11 again. As a reminder, today’s program is being recorded and now I’d like to introduce your host for today’s program, Sue Dooley from Lumexa Investor Relations. Please go ahead.
Sue Dooley (Investor Relations)
Thank you and hello everyone. We appreciate you joining us today. Leading today’s call are our Chief Executive Officer Kaitlyn Zulla and Tony Martin, our CFO. Before we begin, I want to note that we will be discussing non-GAAP financial measures we consider helpful in evaluating Lumex’s performance. You can find details of how these relate to our GAAP measures, along with reconciliations in the press release available on our website. We will also be making forward looking statements based on our current expectations and assumptions which are subject to risks and uncertainties, including factors listed in our press release and in our various Securities and Exchange Commission (SEC) filings. Actual results could differ materially and we assume no obligation to update these forward looking statements. With that, I’ll turn the call over to Caitlin. Caitlin, please go ahead.
Kaitlyn Zulla (Chief Executive Officer)
Thanks, Sue, thank you all for joining us today. In Q1 we delivered several meaningful achievements to kick off a year executing on our strategic priorities which include driving strong same center growth with an expanding mix of advanced modalities, targeting a record number of de novo openings, ensuring the successful ramp of newly opened centers, accelerating high impact strategic service lines and expanding our geographic footprint. Here are a few highlights of our announcement tonight. Our Q1 results came in line with our expectations after the seasonal and weather dynamics we discussed in our Q4 call. Q1 volumes ramped throughout March and we recovered our momentum. Specifically, we drove strong same center growth and strategic service lines are expanding among a healthy mix of advanced modalities. In Q1, advanced modalities grew 7% year over year with Positron Emission Tomography (PET) growing at 23.1% year over year and Magnetic Resonance Imaging (MRI) growing at 8.2% year over year. Rollout of our AI powered breast arterial calcification solution continues with plans for expansion into new markets and strong continued patient uptake. We are actively ramping de novo Centers and our 2024 and 2025 cohorts are tracking in line with our expectations and advancing our plans towards long term growth and profit expansion. And in some exciting news tonight, we completed two acquisitions and opened two de novos this year and we are well on our way to achieving our stated goal of opening 8 to 10 de Novos to fuel future growth meaningfully. One of the acquisitions was an IV Therapy Facility (IVTF) site in Pennsylvania, the first site in our new JV with University of Pittsburgh Medical Center (UPMC), and we are actively advancing multiple site location plans with this important partner. And finally, we’re excited to welcome two exceptional leaders to Lumexa, each bringing the depth of experience and vision that will help drive our next chapter of growth and results. I’ll go into some more detail in just a moment. At Lumexa, we are addressing a large market opportunity and deploying a disciplined growth algorithm. We are confident we are well positioned to execute our growth plans while driving better outcomes across the imaging landscape. I would like to take a moment to speak about our experience in the market as we meet with health systems and the providers who are so important to us and as we continue with our commercial efforts to drive growth and acuity mix. Our value proposition resonates strongly with patients, providers and payers reflected in net promoter scores that consistently exceed 90. We deliver high quality imaging in more convenient settings on a more timely basis and at a meaningfully lower cost than hospital outpatient departments, helping health systems solve important operational challenges and achieve their patient care and market expansion goals. As we pursue our priorities, it is clear the market is moving towards us. We are benefiting from durable long term tailwinds, aging populations, new treatment paradigms requiring advanced imaging, rising preventative screening rates, and an ongoing shift from inpatient to outpatient care in a fragmented, capacity constrained industry. In our conversations with multiple potential health system partners, Bayside struggles with imaging bottlenecks that constrain operational throughput and delay patient access. This underscores a strong need for outpatient capacity and a growing demand for a partner who can deliver speed, access and capital efficient expansion. At the same time, many systems are proactively preparing for potential site neutrality by accelerating their shift towards lower cost outpatient settings, which we believe further reinforces the relevance of our model. And they tell us they like our nimble breast of breed approach that ensures we will always be able to leverage innovation to drive efficiency and the best patient experience and outcomes. As I mentioned a moment ago, reflecting the sizable growth opportunity we are pursuing at Lumexa, we are delighted to welcome two seasoned leaders. First, Kyle lynch, our new Chief Growth Officer, brings deep experience in building high performing business development organizations, executing complex transactions and implementing growth strategies that translate into durable financial performance and another proven industry veteran, Ricky Mondo has joined Lumexa as Chief Enterprise Operations Officer. Ricky has a strong track record of leading and scaling national platforms to drive performance integration and operational excellence. As we continue to grow, her focus on enterprise wide alignment will be critical to delivering for our patients, Partners and Teams welcome Kyle and Ricky. We are thrilled to have you join our team to help drive disciplined, efficient and sustainable growth through joint ventures, de novo development, acquisitions and commercial growth initiatives. And now a moment on the key elements of our growth algorithm. Our commercial team is laser focused on driving same center growth. On the heels of a successful New Jersey launch, we expanded our AI powered breast arterial Calcification program to include New York and in both markets we are seeing strong acceptance for this cash add on assessment with for cardiac health in women, our team continued their focus on driving advanced imaging, Positron Emission Tomography (PET) and Magnetic Resonance Imaging (MRI) are strategic areas of focus for us. Additional seasonal campaigns targeted gastroenterologists and ENT specialists timed to the start of allergy season. These contributed to our growth and increase in acuity. Mix in Q1 we are on track to expand our geographic footprint through new de novo openings, JV partnerships and carefully selected M and A. Tonight’s announcement showcases the opening of four new Lumexa Imaging centers including two small but strategic tuck in acquisitions demonstrating the strength of our JV partnerships. The first location is in Pennsylvania with UPMC and the second location is in North Carolina with Advocate Health. The acquired facilities will ramp over time and their integration into our operating platform and as we complete payer enrollment requirements. The two new de novos are in South Carolina and Florida, expanding our footprint in attractive MSAs and advancing us towards our goal to open 8 to 10 de Novos annually and deliver profitable growth. When it comes to M and a tucked in acquisitions of new centers, there is a lot of opportunity to bring our expertise to a fragmented market and accelerate our presence across targeted geographies. We are continuously evaluating accretive opportunities with a disciplined and proven approach. On the JV front, in addition to excitement around our ramping UPMC partnership, we are cultivating a robust pipeline of potential health system partners with multiple ongoing conversations at various stages. In my conversations with health system leaders, it is clear to me that our approach to joint ventures is a key differentiator for our company. Health systems are seeking ways to participate in the rapid site of care, shift to outpatient imaging and grow their outpatient ambulatory footprint. Our JV model provides a highly effective entry point through clinical, commercial and operational excellence. We demonstrate particularly in de novo development Lumexa Imaging is well positioned to help systems execute against these ambitions while they remain focused on their broader enterprise priorities. In return, these partnerships accelerate our presence in any given market. Finally, a note on our ongoing efforts to scale our company efficiently. We are constantly targeting efficiency gains to meet growing outpatient imaging volume and leverage our installed base of centers and equipment within our fast scan integration continued rolling out across our centers and we are targeting 2/3 adoption by the end of 2026. We are also successfully leveraging virtual cockpit for remote Magnetic Resonance Imaging (MRI) scanning, which allows us to minimize the impact of machine downtime, to flex our staffing schedules and to extend our hours to serve our patients. And we continue to advance our strategy to leverage technology and AI across support services functions to drive scale as we continue to grow. As I conclude my remarks, I want to briefly note that one of our vendors recently experienced a cybersecurity incident that involved a breach of Lumexa data. Unfortunately, these types of events have become increasingly common across industries. Our patients are always our top priority and we are fully committed to doing right by them. We have responded swiftly and are taking the steps necessary to address the situation, protect our patients and comply with applicable laws and regulations. Importantly, we have reviewed the situations and its effects and we do not believe it has a material impact on our business or financial results. In the spirit of transparency, we wanted to make you aware, given the nature of the event, we cannot say more at this time and will of course provide updates in the future as we have them wrapping up. I’m pleased with our Q1 results. We move forward into Q2 with confidence fueled by a strong execution and a sense that at Lumexa Imaging we are in the early innings of capitalizing on the opportunities ahead of us. We are inspired by our mission to extend access to high quality imaging through elevated compassionate care, improving lives and advancing health care across the country. Before turning the call over to Tony to review our first quarter in more detail, I want to say a huge thank you to our dedicated team members and radiologists. With that, Tony, please continue.
Tony Martin (Chief Financial Officer)
Thank you Caitlin and thank you all for joining us today. On today’s call, I’ll review the financial results and speak to some key drivers of our performance for the quarter. I’ll then provide our outlook for full year 2026 to supplement my review of our Generally Accepted Accounting Principles (GAAP) financials. On today’s call, I will cite some system wide metrics to help you better understand our overall performance and the breadth of our business. System wide metrics include all centers that we operate, including those we own as well as the centers we operate in our eight joint ventures with health systems. Turning to our first quarter financials, consolidated revenues came in at 253 million, an increase of 3% compared to the same period last year. System wide revenue growth, which includes all sites we operate was 4% in the quarter, about 2/3 from volume and 1/3 coming from rate, a proportion consistent with how we model the company. Revenue per unit which includes both scan and read. Revenue also increased due to advanced modalities being a higher proportion of our business and some continuing benefit due to modest increases in contracted rates with payers who appreciate our lower price point compared to hospital based services. We experienced strong system wide performance across all our outpatient sites both wholly owned and in JVs, and we continue to be pleased with the core performance of the business. Advanced modality volumes, which reimbursed three to four times higher than routine modalities, grew 7% versus prior year on a consolidated and system wide basis. As we discussed on our Q4 call, our first quarter volumes were shaped by a combination of factors, strong Q4 seasonal performance that created enhanced seasonality coming into Q1 and weather related disruptions in Q1 that temporarily impacted patient volumes at a number of our sites. Overall, these factors ended up impacting Q1 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) by about 4 million. As anticipated, advanced modalities returned the fastest and grew 7% for the quarter with strong momentum heading into Q2. Overall system wide volume growth was 2.5% with the strength of advanced being offset by routine scans which were essentially flat with mammography taking longer to rebound after the storms. While routine scans impact our …
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