RDNT RadNet Inc

RadNet, Inc. (NASDAQ:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 298 owned and/or operated outpatient imaging centers, today reported financial results for its third quarter of 2017.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am pleased with our results this quarter. We compared favorably in all metrics relative to last year’s third quarter despite having divested our Rhode Island assets in the second quarter, having one less workday in this year’s third quarter and having overcome a difficult hurricane season.  We demonstrated Revenue, Adjusted EBITDA(1) and earnings growth as well as positive same center revenue and procedural increases.  Our consistently improving financial metrics have contributed to material deleveraging since year end 2015.”  

Dr. Berger continued, “I believe we are making great strides by executing on a focused multifaceted strategy.  First, we are streamlining our business through divesting non-core or lower margin operations.  For instance, we exited Breastlink and our other oncology assets in California as well as our imaging centers in Rhode Island.  Second, we are continuing to invest in expanding our core markets.  As an example, we doubled the size of our Delaware operating region through acquiring our principal outpatient competitor, Diagnostic Imaging Associates. Third, we are continuing to pursue our health system joint venture strategy.  We’ve both expanded existing joint ventures and established new joint ventures, most notably on the West Coast with Cedars Sinai.  And finally, we continue to grow our information technology platform, or eRAD, through acquiring more customers and purchasing or developing additional software capabilities.”

“During the third quarter, on August 22nd, we completed an amendment to our senior secured first lien credit agreement and raised an additional $170 million of first lien term loans, the proceeds of which were used to repay and retire RadNet’s second lien term loan.  By completing this transaction, we were able to initially reduce our annual cash interest expense by almost $3 million. Based upon the pricing matrix in the amendment, if we continue to deleverage our balance sheet in the future, we could save up to an additional $3 million of cash interest expense annually.  Furthermore, we were able to extend the maturities on the $168.0 million portion of term debt which was formerly our second lien loan by over two years.   Lastly, we significantly improved our financial flexibility,” added Dr. Berger.

Dr. Berger continued, “What I’m most excited about is that many of the recent trends in healthcare are supporting and validating our current operating strategy and positioning.  More and more services are leaving hospitals and being performed at lower cost ambulatory settings.  This is happening across the delivery system, not just in diagnostic imaging.  This will be a continuing trend as health plans and their patients seek lower cost alternatives to hospitals.  As an example, Anthem (one of America’s largest health insurers) recently announced that it will no longer reimburse outpatient imaging performed at hospitals, except under extraordinary circumstances.  We expect others to follow.  We’ve also noted that insurance companies in their efforts to control costs are purchasing freestanding, ambulatory providers such as surgery centers, urgent care locations, clinical laboratories, physical therapy centers, home health businesses, physician practices and perhaps even retail drug store locations.  I’m more convinced than ever that RadNet is well positioned to be a major force in the healthcare delivery continuum of the future.” 

Third Quarter Financial Results

For the third quarter of 2017, RadNet reported Revenue of $227.6 million, Adjusted EBITDA(1) of $36.1 million and Net Income of $3.2 million, respectively.  Revenue increased $3.0 million (or 1.3%) and Adjusted EBITDA(1) increased $188,000 (or 0.5%).  Adjusting for the sale of the Rhode Island facilities taken place on April 28, 2017, Revenue increased 1.9% and Adjusted EBITDA(1) increased 1.3% from the third quarter of 2016.

Net Income increased $1.6 million over the third quarter of 2016.  Per share Net Income for the third quarter was $0.07, compared to per share Net Income in the third quarter of 2016 of $0.04 (based upon a weighted average number of diluted shares outstanding of 47.6 million and 46.3 million for these periods in 2017 and 2016, respectively).

The comparison of Net Income is affected by certain unusual items which occurred in each of the third quarters of 2017 and 2016. 

During the third quarter of 2017, we had pre-tax losses related to (i) our divested/closed oncology operations of $2.0 million; (ii) severance from our sale of Breastlink of $1.0 million; and (iii) expenses from our refinancing transaction of $235,000.  Affecting the third quarter of 2016, we wrote-off $709,000 of deferred financing fees and expensed $606,000 of one-time rating agency and legal fees related to our refinancing transaction completed on July 1, 2016.  We also had a one-time $1.2 million adjustment to depreciation expense and $2.0 million of severance related to our NY acquisitions.

Adjusting for these events on a tax affected basis in both quarters, Adjusted Earnings Per Share was $0.12 in the third quarter of 2017 as compared with $0.11 in the third quarter of 2016.

Also affecting Net Income in the third quarter of 2017 (excluding the items mentioned immediately above in the Adjusted Earnings Calculation) were certain non-cash expenses or non-recurring items including:  $1.5 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $139,000 of additional severance paid in connection with headcount reductions related to cost savings initiatives; $420,000 loss on the sale or disposal of certain capital equipment; and $877,000 of amortization of deferred financing costs and loan discounts related to our credit facilities.

For the third quarter of 2017, as compared with the prior year’s third quarter (and excluding Rhode Island from last year’s third quarter), MRI volume increased 5.1%, CT volume increased 6.3% and PET/CT volume increased 4.5%.  Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 2.4% over the prior year’s third quarter.  On a same-center basis, including only those centers which were part of RadNet for both the third quarters of 2017 and 2016, MRI volume increased 3.3%, CT volume increased 5.5% and PET/CT volume increased 2.8%.  Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 1.5% compared with the prior year’s same quarter.

Nine Month Financial Results

For the nine months ended September 30, 2017, RadNet reported Revenue of $686.6 million, Adjusted EBITDA(1) of $101.8 million and Net Income of $7.3 million.  Revenue increased $27.0 million (or 4.1%), Adjusted EBITDA(1) increased $3.7 million (or 3.8%) and Net Income increased $3.5 million, respectively, over the first nine months of 2016.  Net Income Per Share for the nine month period ended September 30, 2017 was $0.16 per diluted share, compared to Net Income of $0.08 per diluted share in corresponding nine month period of 2016 (based upon a weighted average number of fully diluted shares outstanding of 47.2 million and 46.7 million for these periods in 2017 and 2016, respectively).

Affecting operating results in the nine months ended September 30, 2017 were certain non-cash expenses or non-recurring items including:  $5.8 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $1.6 million of severance paid in connection with headcount reductions related to cost savings initiatives; $828,000 loss on the sale of certain capital equipment; $3.2 million of expenses related to divested or closed operations including oncology, Breastlink and Rhode Island; $235,000 of one-time rating agency and legal fees related to our refinancing transaction completed on August 22, 2017; $3.1 million gain on the sale of imaging and medical practice assets including Breastlink and Rhode Island; and $2.5 million of amortization of deferred financing costs and loan discounts related to our credit facilities.

2017 Guidance Update

RadNet reaffirms its previously announced 2017 guidance ranges as follows:

Total Net Revenue		$895 million - $925 million
Adjusted EBITDA(1)		$135 million - $145 million
Capital Expenditures (a)		$55 million - $60 million
Cash Interest Expense		$35 million - $40 million
Free Cash Flow Generation (b)		$40 million - $50 million

(a) Net of proceeds from the sale of equipment, imaging centers and joint venture interests.

Defined by the Company as Adjusted EBITDA(1) less total capital expenditures and cash paid for interest.

Dr. Berger added, “We are on track to meet our guidance ranges for the year.  All ranges remain unchanged from what we announced earlier in the year.  Due to lower interest expense from the refinancing transaction, we may be below our Cash Interest Expense guidance level for the year.”

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 third quarter 2017 results on Thursday, November 9th, 2017 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Conference Call Details:

Date:  Thursday, November 9, 2017Time:  10:30 a.m. Eastern TimeDial In-Number:  800-289-0548International Dial-In Number:  719-457-2627

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=127114 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 6529988.

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 298 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 7,300 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 2017 financial guidance, achieving cost savings, 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)
								September 30,				December 31,
									2017				2016
								(unaudited)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents							$	8,468			$	20,638
	Accounts receivable, net								168,593				164,210
	Due from affiliates								1,314				2,428
	Prepaid expenses and other current assets								23,181				28,435
	Assets held for sale								-				2,203
		Total current assets							201,556				217,914
PROPERTY AND EQUIPMENT, NET									245,919				247,725
OTHER ASSETS
	Goodwill								253,140				239,553
	Other intangible assets								40,920				42,682
	Deferred financing costs								2,035				2,004
	Investment in joint ventures								49,158				43,509
	Deferred tax assets, net of current portion								48,325				50,356
	Deposits and other								6,866				5,733
		Total assets						$	847,919			$	849,476
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Accounts payable, accrued expenses and other							$	105,100			$	111,166
	Due to affiliates								12,109				13,141
	Deferred revenue								1,944				1,516
	Current portion of deferred rent								2,742				2,961
	Current portion of notes payable								30,235				22,031
	Current portion of obligations under capital leases								4,617				4,526
		Total current liabilities							156,747				155,341
LONG-TERM LIABILITIES
	Deferred rent, net of current portion								26,225				24,799
	Notes payable, net of current portion								579,921				609,445
	Obligations under capital lease, net of current portion								3,173				2,730
	Other non-current liabilities								7,895				5,108
		Total liabilities							773,961				797,423
EQUITY
	RadNet, Inc. stockholders' equity:
	Common stock - $.0001 par value, 200,000,000 shares authorized;
		47,536,958, and 46,574,904 shares issued and outstanding at
		September 30, 2017 and December 31, 2016, respectively							4				4
	Additional paid-in-capital								210,123				198,387
	Accumulated other comprehensive (loss) gain								(1,376	)			306
	Accumulated deficit								(142,885	)			(150,211	)
		Total RadNet, Inc.'s stockholders' equity							65,866				48,486
	Noncontrolling interests								8,092				3,567
		Total equity							73,958				52,053
		Total liabilities and equity						$	847,919			$	849,476

 

RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE DATA)
(unaudited)
								Three Months Ended								Nine Months Ended
								September 30,								September 30,
									2017				2016				2017				2016
NET REVENUE
		Service fee revenue, net of contractual allowances and discounts						$	211,313			$	208,430			$	638,119			$	613,031
		Provision for bad debts							(11,687	)			(11,253	)			(35,187	)			(33,883	)
		Net service fee revenue							199,626				197,177				602,932				579,148
		Revenue under capitation arrangements							27,981				27,466				83,702				80,448
			Total net revenue						227,607				224,643				686,634				659,596
OPERATING EXPENSES
		Cost of operations, excluding depreciation and amortization							198,109				192,752				602,174				583,640
		Depreciation and amortization							17,053				17,318				50,319				49,541
		Loss (gain) on sale and disposal of equipment							420				(66	)			828				375
		Severance costs							1,186				2,188				1,566				2,528
			Total operating expenses						216,768				212,192				654,887				636,084
INCOME FROM OPERATIONS									10,839				12,451				31,747				23,512
OTHER INCOME AND EXPENSES
		Interest expense							10,169				11,404				30,712				32,830
		Meaningful use incentive							-				-				(250	)			(2,808	)
		Equity in earnings of joint ventures							(3,450	)			(2,576	)			(8,372	)			(8,129	)
		Gain on sale of imaging centers							(845	)			-				(3,146	)			-
		Gain from return of common stock							-				-				-				(5,032	)
		Other expenses							4				174				14				180
			Total other expenses						5,878				9,002				18,958				17,041
INCOME BEFORE INCOME TAXES									4,961				3,449				12,789				6,471
		Provision for income taxes							(1,112	)			(1,461	)			(4,177	)			(2,211	)
NET INCOME									3,849				1,988				8,612				4,260
		Net income attributable to noncontrolling interests							623				344				1,286				391
NET INCOME ATTRIBUTABLE TO RADNET, INC.
		COMMON STOCKHOLDERS						$	3,226			$	1,644			$	7,326			$	3,869
BASIC  NET INCOME PER SHARE
		ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS						$	0.07			$	0.04			$	0.16			$	0.08
DILUTED NET INCOME PER SHARE
		ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS						$	0.07			$	0.04			$	0.16			$	0.08
WEIGHTED AVERAGE SHARES OUTSTANDING
		Basic							46,953,705				45,868,629				46,760,583				46,337,993
		Diluted							47,577,750				46,333,970				47,239,360				46,748,836

 

RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(unaudited)
								Nine Months Ended September 30,
									2017				2016
CASH FLOWS FROM OPERATING ACTIVITIES
	Net income							$	8,612			$	4,260
	Adjustments to reconcile net income
	to net cash provided by operating activities:
	Depreciation and amortization								50,319				49,541
	Provision for bad debts								35,187				33,883
	Gain from return of common stock								-				(5,032	)
	Equity in earnings of joint ventures								(8,372	)			(8,129	)
	Distributions from joint ventures								6,785				2,929
	Amortization deferred financing costs and loan discount								2,509				4,244
	Loss on sale and disposal of equipment								828				375
	Gain on sale of imaging centers								(3,146	)			-
	Stock-based compensation								5,842				4,918
	Non cash severence								1,047				-
	Changes in operating assets and liabilities, net of assets
	acquired and liabilities assumed in purchase transactions:
	Accounts receivable								(38,770	)			(53,277	)
	Other current assets								2,981				10,420
	Other assets								309				751
	Deferred taxes								2,031				1,426
	Deferred rent								2,137				(678	)
	Deferred revenue								428				60
	Accounts payable, accrued expenses and other								6,857				9,039
	Net cash provided by operating activities								75,584				54,730
CASH FLOWS FROM INVESTING ACTIVITIES
	Purchase of imaging facilities								(22,904	)			(6,603	)
	Investment at cost								(500	)			-
	Purchase of property and equipment								(52,807	)			(52,110	)
	Proceeds from sale of imaging and medical practice assets								9,000				63
	Cash distribution from new JV partner								1,473				994
	Equity contributions in existing and purchase of interest in joint ventures								(80	)			(1,374	)
	Net cash used in investing activities								(65,818	)			(59,030	)
CASH FLOWS FROM FINANCING ACTIVITIES
	Principal payments on notes and leases payable								(5,297	)			(9,219	)
	Proceeds from borrowings								170,000				476,503
	Payments on Term Loan Debt								(188,396	)			(463,022	)
	Deferred financing costs and debt discount								(5,067	)			(945	)
	Distributions paid to noncontrolling interests								(1,065	)			(492	)
	Proceeds from sale of noncontrolling interest, net of taxes								7,726				-
	Contributions from noncontrolling partners								125				-
	Proceeds from revolving credit facility								182,000				344,600
	Payments on revolving credit facility								(182,000	)			(343,000	)
	Purchase of noncontrolling interests								-				(350	)
	Proceeds from issuance of common stock upon exercise of options								-				150
	Net cash (used in) provided by financing activities								(21,974	)			4,225
EFFECT OF EXCHANGE RATE CHANGES ON CASH									38				(13	)
NET DECREASE IN CASH AND CASH EQUIVALENTS									(12,170	)			(88	)
CASH AND CASH EQUIVALENTS, beginning of period									20,638				446
CASH AND CASH EQUIVALENTS, end of period								$	8,468			$	358
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
	Cash paid during the period for interest							$	29,134			$	26,819

RADNET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.
COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1)
(IN THOUSANDS)
							Three Months Ended
							September 30,
								2017				2016
Net Income Attributable to RadNet, Inc. Common Shareholders							$	3,226			$	1,647
Plus Interest Expense								10,169				11,404
Plus Provision for Income Taxes								1,112				1,458
Plus Depreciation and Amortization								17,053				17,318
Plus Loss (Gain) on Sale of Equipment								420				(66	)
Plus Severance Costs								1,186				2,188
Plus Other Expenses								4				174
Plus Non-Cash Employee Stock-Based Compensation								1,528				1,157
Plus Fees Related to Term Loan Refinancing								235				606
Plus Expenses of Divested/Closed Operations								1,986				-
Less Gain on Sale of Imaging Centers								(845	)			-
Adjusted EBITDA(1)							$	36,074			$	35,886
							Nine Months Ended
							September 30,
								2017				2016
Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders							$	7,326			$	3,549
Plus Interest Expense								30,712				32,830
Plus Provision for Income Taxes								4,177				2,531
Plus Depreciation and Amortization								50,319				49,541
Plus Loss on Sale of Equipment								828				375
Plus Severance Costs								1,566				2,528
Plus Other Expenses								14				180
Plus Non-Cash Employee Stock-Based Compensation								5,842				4,918
Plus Acquisition Related Working Capital Adjustment								-				6,072
Plus Fees Related to Term Loan Refinancing								235				606
Plus Expenses of Divested/Closed Operations								3,186				-
Plus Reimbursable Legal Expenses								723				-
Less Gain on Sale of Imaging Centers								(3,146	)			-
Less Gain on Return of Common Stock								-				(5,032	)
Adjusted EBITDA(1)							$	101,782			$	98,098

PAYOR CLASS BREAKDOWN**
		Third Quarter
		2017
Commercial Insurance		58.9	%
Medicare		20.0	%
Capitation		11.7	%
Workers Compensation/Personal Injury		3.6	%
Medicaid		2.6	%
Other		3.2	%
Total		100.0	%
**Capitation percentage has been calculated based upon its proportion of Revenue Under Capitation Arrangements in the period  to
Service Fee Revenue, Net of Contractual Allowances and Discounts plus Revenue Under Capitation Arrangements.
After deducting the capitation percentage from 100%, all other payor class percentages are based upon a proportion to global payments
received from consolidated imaging centers from that periods dates of services and excludes payments
from hospital contracts, Breastlink, imaging center management fees, eRAD, Imaging on Call and other miscellaneous revenue.

 

RADNET PAYMENTS BY MODALITY *
		Third Quarter			Full Year			Full Year			Full Year
		2017			2016			2015			2014
MRI		35.2	%		34.7	%		35.3	%		36.1	%
CT		16.0	%		15.8	%		15.7	%		15.3	%
PET/CT		5.2	%		5.0	%		5.1	%		5.7	%
X-ray		8.8	%		9.3	%		9.6	%		10.2	%
Ultrasound		12.0	%		12.3	%		11.5	%		11.1	%
Mammography		16.2	%		16.5	%		16.4	%		16.5	%
Nuclear Medicine		1.1	%		1.2	%		1.3	%		1.4	%
Other		5.3	%		5.2	%		5.1	%		3.7	%
		100.0	%		100.0	%		100.0	%		100.0	%
Note
* Based upon global payments received from consolidated Imaging Centers from that year's dates of service.
Excludes payments from hospital contracts, Breastlink, Imaging on Call, eRAD, Center Management Fees and other miscellaneous operating activities.

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.