RadNet, Inc. (NASDAQ: RDNT), a national leader in
providing high-quality, cost-effective, fixed-site outpatient
diagnostic imaging services through a network of 340 owned and/or
operated outpatient imaging centers, today reported financial
results for its second quarter of 2019.
Dr. Howard Berger, President and Chief Executive
Officer of RadNet, commented, “We continued the momentum we
established in the first quarter of this year with a very strong
second quarter. Our Revenue increased 18.3% and our Adjusted
EBITDA(1) increased 13.0% from last year’s second quarter.
Our improved performance was driven by strong contributions from
recent acquisitions on both coasts, new and expanded joint ventures
and overall same-center procedural volume growth of 3.5%.”
Dr. Berger continued, “During the quarter, we
began the systematic integration of Kern Radiology and
operationalized our second joint venture with Dignity Health in
Ventura County, California. We also continued to make
progress with our performance of our East Coast capitation contract
with Emblem Health and further integrated our recently acquired
Medical Arts Radiology acquisition in Long Island, New York.”
“We remain excited about the prospects for the
second half of 2019 and have increased our guidance levels in
anticipation of continued strength in our business. We have
also begun to set the stage for exciting potential developments
that could have a material positive impact on the accuracy, speed
and cost structure of our future service offerings. Most
notably, we announced the formation of our Artificial Intelligence
division along with the acquisition of the 75% of Nulogix which we
did not previously own. Through this new division, we intend
to research, develop, test and invest in offerings using artificial
intelligence for image interpretation and for improving our
business processes,” added Dr. Berger.
Second Quarter Financial
Results
For the second quarter of 2019, RadNet reported
Revenue of $289.1 million and Adjusted EBITDA(1) of $43.1
million. Revenue increased $44.7 million (or 18.3%) and
Adjusted EBITDA(1) increased $5.0 million (or 13.0%) from the
second quarter of last year.
For the second quarter, RadNet reported Net
Income Attributable to RadNet, Inc. Common Stockholders (“Net
Income”) of $4.9 million, a decrease of approximately $507,000 over
the second quarter of 2018. Adjusting for the impact of the
financing transaction and legal settlements accounted for in Other
Expenses during the quarter on a tax-effected basis of $912,000
(“Adjusted Net Income”), Adjusted Net Income was $5.8 million in
the second quarter, an increase of $405,000 over the second quarter
of 2018.
Per share diluted Net Income for the second
quarter was $0.10, compared to $0.11 in the second quarter of 2018
(based upon a weighted average number of diluted shares outstanding
of 50.1 million and 48.5 million for these periods in 2019 and
2018, respectively). Adjusting for the impact of the
financing transaction and legal settlements accounted for in Other
Expenses during the quarter on a tax-effected basis of $912,000,
per share diluted Adjusted Net Income was $0.12 in the second
quarter compared to $0.11 in the second quarter of 2018.
Affecting Net Income in the second quarter of
2019 were certain non-cash expenses and non-recurring items
including: $1.0 million of non-cash employee stock
compensation expense resulting from the vesting of certain options
and restricted stock; $371,000 of severance paid in connection with
headcount reductions related to cost savings initiatives; $101,000
loss on the sale of certain capital equipment; $1.3 million of
Other Expense related to the financing transaction and legal
settlements; and $973,000 of non-cash amortization of deferred
financing costs and loan discount on debt issuances.
For the second quarter of 2018, as compared with
the prior year’s second quarter, MRI volume increased 9.7%, CT
volume increased 14.1% and PET/CT volume increased 9.0%.
Overall volume, taking into account routine imaging exams,
inclusive of x-ray, ultrasound, mammography and other exams,
increased 11.4% over the prior year’s second quarter. On a
same-center basis, including only those centers which were part of
RadNet for both the second quarters of 2019 and 2018, MRI volume
increased 3.2%, CT volume increased 6.0% and PET/CT volume
decreased 1.3%. Overall same-center volume, taking into
account routine imaging exams, inclusive of x-ray, ultrasound,
mammography and other exams, increased 3.5% over the prior year’s
same quarter.
Six Month Financial Results
For the six months ended June 30, 2019, RadNet
reported Revenue of $560.6 million and Adjusted EBITDA(1) of $76.2
million. Revenue increased $84.9 million (or 17.8%) and
Adjusted EBITDA(1) increased $17.0 million (or 28.7%) from the same
six month period last year.
For the six month period in 2019, RadNet
reported Net Income of $1.2 million, an increase of approximately
$3.1 million over the first six months of of 2018. Adjusting
for the impact of the financing transaction and legal settlements
accounted for in Other Expenses during the six month period on a
tax effected basis of $912,000, Adjusted Net Income was $2.1
million in the first six months of 2019, an increase of $4.1
million over the same period of 2018.
Per share diluted Net Income for the first six
months of 2019 was $0.02, compared to a diluted Net Loss of $(0.04)
in the same six month period of 2018 (based upon a weighted average
number of diluted shares outstanding of 50.0 million and 47.9
million for these periods in 2019 and 2018, respectively).
Adjusting for the impact of the financing transaction and
legal settlements accounted for in Other Expenses during the six
month period on a tax effected basis of $912,000, per share diluted
Adjusted Net Income was $0.04 in the first half of 2019 compared to
a diluted Net Loss of $(0.04) in the same period of 2018.
Affecting Net Loss for the six month period of
2019 were certain non-cash expenses and non-recurring items
including: $5.6 million of non-cash employee stock
compensation expense resulting from the vesting of certain options
and restricted stock; $1.0 million of severance paid in connection
with headcount reductions related to cost savings initiatives; $1.3
million of Other Expense related to the financing transaction and
legal settlements; and $2.0 million of combined non-cash
amortization of deferred financing costs and loan discounts related
to financing fees paid as part of our existing credit
facilities.
2019 Guidance Update
RadNet amends its previously announced guidance
levels as follows:
|
|
Guidance Range after 1st Quarter |
Revised Guidance Range |
Total Net Revenue |
$1,050 million - $1,100 million |
$1,100 million - $1,150 million |
Adjusted EBITDA(1) |
$155 million - $165 million |
$158 million - $168 million |
Free Cash Flow (a) |
$45 million - $55 million |
Unchanged |
|
|
|
Capital Expenditures (b) |
$60 million - $65 million |
$63 million - $68 million |
Cash Interest Expense |
$43 million - $48 million |
Unchanged |
|
(a) Defined by the Company as Adjusted EBITDA(1) less total
capital expenditures and cash paid for interest. |
(b) Net of proceeds from the sale of equipment, imaging
centers and joint venture interests. |
Dr. Berger highlighted, “Buoyed with confidence from the strong
performance of the first and second quarters, we have elected to
increase our 2019 full year guidance ranges for Revenue and
Adjusted EBITDA(1). The consistent organic growth and the
contribution from recent acquisitions and health system joint
ventures are causing us to exceed our initial 2019
projections. We remain optimistic about the continuation of
these trends through the end of the year and into 2020.”
Conference Call for Today
Dr. Howard Berger, President and Chief Executive
Officer, and Mark Stolper, Executive Vice President and Chief
Financial Officer, will host a conference call to discuss its
second quarter 2019 results on Thursday, August 8th, 2019 at 7:30
a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Thursday, August 8, 2019Time:
10:30 a.m. Eastern TimeDial In-Number:
888-208-1711International Dial-In Number: 323-794-2577
It is recommended that participants dial in
approximately 5 to 10 minutes prior to the start of the 10:30 a.m.
call. There will also be simultaneous and archived webcasts
available at
http://public.viavid.com/index.php?id=135565 or
http://www.radnet.com under the “Investors” menu section and “News
Releases” sub-menu of the website. An archived replay of the
call will also be available and can be accessed by dialing
844-512-2921 from the U.S., or 412-317-6671 for international
callers, and using the passcode 8531618.
Regulation G: GAAP and Non-GAAP
Financial Information
This release contains certain financial
information not reported in accordance with GAAP. The Company uses
both GAAP and non-GAAP metrics to measure its financial
results. The Company believes that, in addition to GAAP
metrics, these non-GAAP metrics assist the Company in measuring its
cash-based performance. The Company believes this information
is useful to investors and other interested parties because it
removes unusual and nonrecurring charges that occur in the affected
period and provides a basis for measuring the Company's financial
condition against other quarters. Such information should not
be considered as a substitute for any measures calculated in
accordance with GAAP, and may not be comparable to other similarly
titled measures of other companies. Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Reconciliation of this information to the most
comparable GAAP measures is included in this release in the tables
which follow.
About RadNet, Inc.
RadNet, Inc. is the leading national provider of
freestanding, fixed-site diagnostic imaging services in the United
States based on the number of locations and annual imaging revenue.
RadNet has a network of 340 owned and/or operated outpatient
imaging centers. RadNet's core markets include California,
Maryland, Delaware, New Jersey and New York. In addition, RadNet
provides radiology information technology solutions, teleradiology
professional services and other related products and services to
customers in the diagnostic imaging industry. Together with
affiliated radiologists, and inclusive of full-time and per diem
employees and technicians, RadNet has a total of approximately
8,000 employees. For more information, visit
http://www.radnet.com.
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Specifically, statements concerning
successfully integrating acquired operations, successfully
achieving 2019 financial guidance, successfully developing and
integrating new lines of business, continuing to grow its business
by generating patient referrals and contracts with radiology
practices, and receiving third-party reimbursement for diagnostic
imaging services, are forward-looking statements within the meaning
of the Safe Harbor. Forward-looking statements are based on
management's current, preliminary expectations and are subject to
risks and uncertainties, which may cause the Company's actual
results to differ materially from the statements contained herein.
Further information on potential risk factors that could affect
RadNet's business and its financial results are detailed in its
most recent Annual Report on Form 10-K, as filed with the
Securities and Exchange Commission. Undue reliance should not be
placed on forward-looking statements, especially guidance on future
financial performance, which speaks only as of the date they are
made. RadNet undertakes no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date they were made, or to reflect the
occurrence of unanticipated events.
CONTACTS:
RadNet,
Inc.Mark Stolper,
310-445-2800Executive Vice
President and Chief Financial Officer
RADNET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(IN THOUSANDS EXCEPT SHARE AND PER SHARE
DATA) |
|
June 30,2019 |
|
December 31,2018 |
|
(unaudited) |
|
|
ASSETS |
|
CURRENT ASSETS |
|
Cash and cash equivalents |
$ |
30,504 |
|
|
$ |
10,389 |
|
Accounts receivable, net |
|
159,323 |
|
|
|
148,919 |
|
Due from affiliates |
|
649 |
|
|
|
595 |
|
Prepaid expenses and other current assets |
|
41,957 |
|
|
|
46,288 |
|
Assets held for sale |
|
2,041 |
|
|
|
2,499 |
|
Total current assets |
|
234,474 |
|
|
|
208,690 |
|
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS |
|
Property and equipment, net |
|
352,624 |
|
|
|
345,729 |
|
Operating lease right-of-use assets |
|
432,557 |
|
|
|
- |
|
Total property, equipment and right-of-use assets |
|
785,181 |
|
|
|
345,729 |
|
OTHER ASSETS |
|
Goodwill |
|
437,940 |
|
|
|
418,093 |
|
Other intangible assets |
|
40,800 |
|
|
|
40,593 |
|
Deferred financing costs |
|
1,782 |
|
|
|
1,354 |
|
Investment in joint ventures |
|
38,621 |
|
|
|
37,973 |
|
Deferred tax assets, net of current portion |
|
34,013 |
|
|
|
31,506 |
|
Deposits and other |
|
23,865 |
|
|
|
25,392 |
|
Total assets |
$ |
1,596,676 |
|
|
$ |
1,109,330 |
|
LIABILITIES AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
Accounts payable, accrued expenses and other |
$ |
168,815 |
|
|
|
181,028 |
|
Due to affiliates |
|
13,543 |
|
|
|
13,089 |
|
Deferred revenue |
|
1,732 |
|
|
|
2,398 |
|
Current portion of deferred rent |
|
- |
|
|
|
3,735 |
|
Current portion of finance lease |
|
4,334 |
|
|
|
- |
|
Current portion of operating lease |
|
65,461 |
|
|
|
- |
|
Current portion of notes payable and long term debt |
|
39,364 |
|
|
|
33,653 |
|
Current portion of obligations under capital lease |
|
- |
|
|
|
5,614 |
|
Total current liabilities |
|
293,249 |
|
|
|
239,517 |
|
LONG-TERM LIABILITIES |
|
|
|
Deferred rent, net of current portion |
|
- |
|
|
|
31,542 |
|
Finance lease, net of current portion |
|
4,851 |
|
|
|
- |
|
Operating lease, net of current portion |
|
404,463 |
|
|
|
- |
|
Notes payable, net of current portion |
|
672,534 |
|
|
|
626,507 |
|
Obligations under capital lease, net of current portion |
|
- |
|
|
|
6,505 |
|
Other non-current liabilities |
|
9,149 |
|
|
|
5,006 |
|
Total liabilities |
|
1,384,246 |
|
|
|
909,077 |
|
EQUITY |
|
|
|
RadNet, Inc. stockholders' equity: |
|
Common stock - $.0001 par value, 200,000,000 shares authorized;
50,127,234 and 48,977,485 shares issued and outstanding at June 30,
2019 and December 31, 2018, respectively |
|
5 |
|
|
|
5 |
|
Additional paid-in-capital |
|
257,607 |
|
|
|
242,835 |
|
Accumulated other comprehensive income (loss) |
|
(6,944 |
) |
|
|
2,259 |
|
Accumulated deficit |
|
(116,750 |
) |
|
|
(117,915 |
) |
Total RadNet, Inc.'s stockholders' equity |
|
133,918 |
|
|
|
127,184 |
|
Noncontrolling interests |
|
78,512 |
|
|
|
73,069 |
|
Total equity |
|
212,430 |
|
|
|
200,253 |
|
Total liabilities and equity |
$ |
1,596,676 |
|
|
$ |
1,109,330 |
|
|
|
|
|
RADNET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(IN THOUSANDS EXCEPT SHARE AND PER SHARE
DATA) |
(unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
REVENUE |
|
|
|
|
|
|
|
Service fee revenue |
$ |
258,171 |
|
|
|
219,416 |
|
|
$ |
500,844 |
|
|
|
423,584 |
|
Revenue under capitation arrangements |
|
30,926 |
|
|
|
24,979 |
|
|
|
59,803 |
|
|
|
52,203 |
|
Total revenue |
|
289,097 |
|
|
|
244,395 |
|
|
|
560,647 |
|
|
|
475,787 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
Cost of operations, excluding depreciation and amortization |
|
246,558 |
|
|
|
210,055 |
|
|
|
489,615 |
|
|
|
425,689 |
|
Depreciation and amortization |
|
20,083 |
|
|
|
18,086 |
|
|
|
39,703 |
|
|
|
35,942 |
|
Loss (gain) on sale and disposal of equipment |
|
101 |
|
|
|
105 |
|
|
|
1,073 |
|
|
|
(1,831 |
) |
Severance costs |
|
371 |
|
|
|
279 |
|
|
|
1,002 |
|
|
|
1,005 |
|
Total operating expenses |
|
267,113 |
|
|
|
228,525 |
|
|
|
531,393 |
|
|
|
460,805 |
|
INCOME FROM OPERATIONS |
|
21,984 |
|
|
|
15,870 |
|
|
|
29,254 |
|
|
|
14,982 |
|
|
|
|
|
|
|
|
|
OTHER INCOME AND EXPENSES |
|
|
|
|
|
|
|
Interest expense |
|
12,399 |
|
|
|
10,641 |
|
|
|
24,694 |
|
|
|
20,680 |
|
Equity in earnings of joint ventures |
|
(2,244 |
) |
|
|
(3,748 |
) |
|
|
(4,117 |
) |
|
|
(6,725 |
) |
Other (income) expenses |
|
1,269 |
|
|
|
5 |
|
|
|
1,269 |
|
|
|
6 |
|
Total other expenses |
|
11,424 |
|
|
|
6,898 |
|
|
|
21,846 |
|
|
|
13,961 |
|
INCOME BEFORE INCOME TAXES |
|
10,560 |
|
|
|
8,972 |
|
|
|
7,408 |
|
|
|
1,021 |
|
Provision for income taxes |
|
(2,969 |
) |
|
|
(2,505 |
) |
|
|
(1,740 |
) |
|
|
(8 |
) |
NET INCOME |
|
7,591 |
|
|
|
6,467 |
|
|
|
5,668 |
|
|
|
1,013 |
|
Net income attributable to noncontrolling interests |
|
2,692 |
|
|
|
1,061 |
|
|
|
4,503 |
|
|
|
2,945 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON
STOCKHOLDERS |
$ |
4,899 |
|
|
$ |
5,406 |
|
|
$ |
1,165 |
|
|
$ |
(1,932 |
) |
|
|
|
|
|
|
|
|
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET,
INC. COMMON STOCKHOLDERS |
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.02 |
|
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET,
INC. COMMON STOCKHOLDERS |
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.02 |
|
|
$ |
(0.04 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
Basic |
|
49,702,869 |
|
|
|
47,969,003 |
|
|
|
49,490,234 |
|
|
|
47,896,216 |
|
Diluted |
|
50,144,540 |
|
|
|
48,526,033 |
|
|
|
49,988,036 |
|
|
|
47,896,216 |
|
|
|
|
|
|
|
|
|
RADNET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
CASHFLOWS |
(IN THOUSANDS) |
(unaudited) |
|
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Net income |
$ |
5,668 |
|
|
$ |
1,013 |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
39,703 |
|
|
|
35,942 |
|
Amortization of operating lease assets |
|
32,937 |
|
|
|
- |
|
Equity in earnings of joint ventures |
|
(4,117 |
) |
|
|
(6,725 |
) |
Distributions from joint ventures |
|
3,438 |
|
|
|
7,083 |
|
Amortization deferred financing costs and loan discount |
|
2,021 |
|
|
|
1,949 |
|
Loss (gain) on sale and disposal of equipment |
|
1,073 |
|
|
|
(1,831 |
) |
Stock-based compensation |
|
5,582 |
|
|
|
4,890 |
|
Noncash item in other expenses |
|
(559 |
) |
|
|
- |
|
Change in fair value of contingent consideration |
|
(1,953 |
) |
|
|
- |
|
Changes in operating assets and liabilities, net of assets acquired
and liabilities assumed in purchase transactions: |
|
|
|
Accounts receivable |
|
(12,042 |
) |
|
|
(7,113 |
) |
Other current assets |
|
4,331 |
|
|
|
(568 |
) |
Other assets |
|
2,069 |
|
|
|
(900 |
) |
Deferred taxes |
|
(3,542 |
) |
|
|
(78 |
) |
Operating leases |
|
(32,268 |
) |
|
|
- |
|
Deferred rent |
|
- |
|
|
|
1,788 |
|
Deferred revenue |
|
(666 |
) |
|
|
153 |
|
Accounts payable, accrued expenses and other |
|
2,860 |
|
|
|
11,345 |
|
Net cash provided by operating activities |
|
44,535 |
|
|
|
46,948 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Purchase of imaging facilities |
|
(27,149 |
) |
|
|
(14,094 |
) |
Equity investments at fair value |
|
(143 |
) |
|
|
(2,200 |
) |
Purchase of property and equipment |
|
(50,342 |
) |
|
|
(45,133 |
) |
Proceeds from sale of equipment |
|
760 |
|
|
|
2,324 |
|
Proceeds from sale of equity interests in a joint venture |
|
132 |
|
|
|
- |
|
Proceeds from sale of imaging and medical practice assets |
|
- |
|
|
|
- |
|
Cash distribution from new JV partner |
|
- |
|
|
|
- |
|
Equity contributions in existing joint ventures |
|
(103 |
) |
|
|
(2,000 |
) |
Net cash used in investing activities |
|
(76,845 |
) |
|
|
(61,103 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
Principal payments on notes and leases payable |
|
(3,320 |
) |
|
|
(3,393 |
) |
Payments on Term Loan Debt |
|
(19,469 |
) |
|
|
(16,540 |
) |
Deferred Financing Costs due to New Debt |
|
(683 |
) |
|
|
- |
|
Debt Discount due to new debt |
|
(2,173 |
) |
|
|
- |
|
Proceeds from issuance of new debt |
|
100,000 |
|
|
|
- |
|
Distributions paid to noncontrolling interests |
|
- |
|
|
|
(913 |
) |
Proceeds from sale of noncontrolling interest |
|
5,275 |
|
|
|
- |
|
Contribution from a noncontrolling partners |
|
750 |
|
|
|
- |
|
Proceeds from revolving credit facility |
|
236,200 |
|
|
|
19,800 |
|
Payments on revolving credit facility |
|
(264,200 |
) |
|
|
(19,800 |
) |
Proceeds from issuance of common stock upon exercise of
options |
|
50 |
|
|
|
- |
|
Net cash provided by (used in) financing activities |
|
52,430 |
|
|
|
(20,846 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
(5 |
) |
|
|
(69 |
) |
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
|
20,115 |
|
|
|
(35,070 |
) |
CASH AND CASH EQUIVALENTS, beginning of
period |
|
10,389 |
|
|
|
51,322 |
|
CASH AND CASH EQUIVALENTS, end of period |
$ |
30,504 |
|
|
$ |
16,252 |
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION |
$ |
23,292 |
|
|
$ |
17,509 |
|
|
|
|
|
RADNET, INC. |
RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO
RADNET, INC. |
COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1) |
(IN THOUSANDS) |
|
|
Three Months Ended |
|
June 30, |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net Income Attributable to RadNet, Inc. Common Shareholders |
$ |
4,899 |
|
$ |
5,406 |
|
Plus Interest Expense |
|
12,399 |
|
|
10,641 |
|
Plus Provision for Income
Taxes |
|
2,969 |
|
|
2,505 |
|
Plus Depreciation and
Amortization |
|
20,083 |
|
|
18,086 |
|
Plus Other Expenses |
|
1,269 |
|
|
5 |
|
Plus Severance Costs |
|
371 |
|
|
279 |
|
Plus Loss on Sale of
Equipment |
|
101 |
|
|
105 |
|
Plus Non Cash Employee Stock
Compensation |
|
1,044 |
|
|
1,146 |
|
Adjusted EBITDA(1) |
$ |
43,135 |
|
$ |
38,173 |
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
June 30, |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net (Loss) Income
Attributable to RadNet, Inc. Common Shareholders |
$ |
1,165 |
|
$ |
(1,932 |
) |
Plus Interest Expense |
|
24,694 |
|
|
20,680 |
|
Plus Provision for Income
Taxes |
|
1,740 |
|
|
8 |
|
Plus Depreciation and
Amortization |
|
39,703 |
|
|
35,942 |
|
Plus Other Expenses |
|
1,269 |
|
|
6 |
|
Plus Severance Costs |
|
1,002 |
|
|
1,005 |
|
Plus Gain on Sale
of Equipment Attributable to Noncontrolling Interest |
|
- |
|
|
440 |
|
Plus (Gain) Loss on Sale of
Equipment |
|
1,072 |
|
|
(1,831 |
) |
Plus Non Cash Employee Stock
Compensation |
|
5,583 |
|
|
4,890 |
|
Adjusted EBITDA(1) |
$ |
76,228 |
|
$ |
59,208 |
|
|
|
|
|
|
|
PAYOR CLASS BREAKDOWN** |
|
|
|
|
|
Second Quarter |
|
|
2019 |
|
|
|
Commercial Insurance |
|
57.5% |
Medicare |
|
20.8% |
Capitation |
|
10.7% |
Workers Compensation/Personal
Injury |
|
3.8% |
Medicaid |
|
2.5% |
Other |
|
4.7% |
Total |
|
100.0% |
|
|
|
**Calculated as
percentages of global payments received |
|
from that period's dates of
services. |
|
|
|
|
|
RADNET PAYMENTS BY MODALITY * |
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Full Year |
|
Full Year |
|
Full Year |
|
|
2019 |
|
2018 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
MRI |
|
35.8% |
|
35.2% |
|
34.9% |
|
34.7% |
CT |
|
17.1% |
|
16.5% |
|
16.2% |
|
15.8% |
PET/CT |
|
5.5% |
|
5.7% |
|
5.2% |
|
5.0% |
X-ray |
|
8.3% |
|
8.4% |
|
8.9% |
|
9.3% |
Ultrasound |
|
12.4% |
|
12.2% |
|
12.1% |
|
12.3% |
Mammography |
|
14.8% |
|
15.8% |
|
16.3% |
|
16.5% |
Nuclear Medicine |
|
1.1% |
|
1.1% |
|
1.1% |
|
1.2% |
Other |
|
5.0% |
|
5.1% |
|
5.2% |
|
5.2% |
|
|
100.0% |
|
100.0% |
|
100.0% |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
|
|
|
|
|
|
|
* Based upon
global payments received from that period's dates of service. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes
(1) The Company defines Adjusted EBITDA as
earnings before interest, taxes, depreciation and amortization,
each from continuing operations and adjusted for losses or gains on
the sale of equipment, other income or loss, debt extinguishments
and non-cash equity compensation. Adjusted EBITDA includes
equity earnings in unconsolidated operations and subtracts
allocations of earnings to non-controlling interests in
subsidiaries, and is adjusted for non-cash or extraordinary and
one-time events taken place during the period.
Adjusted EBITDA is reconciled to its nearest
comparable GAAP financial measure. Adjusted EBITDA is a
non-GAAP financial measure used as analytical indicator by RadNet
management and the healthcare industry to assess business
performance, and is a measure of leverage capacity and ability to
service debt. Adjusted EBITDA should not be considered a
measure of financial performance under GAAP, and the items excluded
from Adjusted EBITDA should not be considered in isolation or as
alternatives to net income, cash flows generated by operating,
investing or financing activities or other financial statement data
presented in the consolidated financial statements as an indicator
of financial performance or liquidity. As Adjusted EBITDA is not a
measurement determined in accordance with GAAP and is therefore
susceptible to varying methods of calculation, this metric, as
presented, may not be comparable to other similarly titled measures
of other companies.
(2) As noted above, the Company defines Free
Cash Flow as Adjusted EBITDA less total Capital Expenditures
(whether completed with cash or financed) and Cash Interest
paid. Free Cash Flow is a non-GAAP financial measure.
The Company uses Free Cash Flow because the Company believes it
provides useful information for investors and management because it
measures our capacity to generate cash from our operating
activities. Free Cash Flow does not represent total cash flow since
it does not include the cash flows generated by or used in
financing activities. In addition, our definition of Free Cash Flow
may differ from definitions used by other companies.
Free Cash Flow should not be considered a
measure of financial performance under GAAP, and the items excluded
from Adjusted EBITDA should not be considered in isolation or as
alternatives to net income, cash flows generated by operating,
investing or financing activities or other financial statement data
presented in the consolidated financial statements as an indicator
of financial performance or liquidity. As Adjusted EBITDA is not a
measurement determined in accordance with GAAP and is therefore
susceptible to varying methods of calculation, this metric, as
presented, may not be comparable to other similarly titled measures
of other companies.
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