RadNet, Inc. (NASDAQ: RDNT), a national leader in
providing high-quality, cost-effective, fixed-site outpatient
diagnostic imaging services through a network of 398 owned and
operated outpatient imaging centers, today reported financial
results for its second quarter of 2024.
Dr. Howard Berger, President and Chief Executive
Officer of RadNet, commented, “Both the Imaging Center and Digital
Health reportable operating segments demonstrated strong growth and
achieved record quarterly results. Total Company Revenue grew 13.9%
as compared with last year’s second quarter to a record $459.7
million. The Digital Health segment Revenue of $15.8 million
increased 36.4% from last year’s same quarter. The strong growth in
Digital Health was, in part, driven by the AI businesses, whose
Revenue increased 136.6% as compared with last year’s second
quarter, mainly from the continuing success of the rollout of the
Enhanced Breast Cancer Detection (EBCD) DeepHealth AI-powered
screening mammography program.”
“Improved reimbursement from commercial and
capitated payors, continued strong demand for advanced imaging
modalities, the growth of the Digital Health businesses and
effective cost controls resulted in an increase to Adjusted
EBITDA(1) margins. Total Company EBITDA(1) margin of 15.7% during
this second quarter increased by 76 basis points over last year’s
second quarter.” added Dr. Berger.
Dr. Berger continued, “Including the recently
announced joint venture with Providence Health System, a recent
expansion of the Ventura County, California partnership with
Dignity Health and certain new de novo centers we have opened
within existing joint ventures, as of the end of this second
quarter, we had 149 of our 398 centers (or 37.4%) held in
partnership with leading health systems. These partnerships allow
us to play a more integral role within the local healthcare
communities we serve by increasing access, disseminating new
technologies and improving the quality of patient care.”
“Given the positive trends we continue to
experience in virtually all aspects of our business and the strong
financial performance of the second quarter, we are revising
upwards certain guidance levels in anticipation of financial
results that we believe will exceed both our original expectations
and the amendments we made to the guidance ranges upon releasing
our first quarter 2024 results in May. We have increased 2024
guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash
Flow(2),” added Dr. Berger.
Dr. Berger continued, “In response to high
demand and patient backlogs in many of RadNet’s local markets, we
continue to pursue expanding capacity through the development and
construction of new imaging centers. We anticipate opening
approximately six new centers by year end 2024 and an additional 15
centers in 2025. Approximately half of these new centers will be
within existing health system partnerships. Within Digital Health,
but for Houston, we are substantially complete with implementing
the EBCD program. Continued development of the DeepHealth OS
technology platform places us on-track towards beginning
implementation within RadNet in the coming months and within
external customers as early as the first quarter of 2025. The
DeepHealth OS integrates generative AI capabilities to help us and
external customers automate and drive efficiencies for many of the
back-office and support functions involved with running imaging
centers.”
“RadNet’s balance sheet continues to strengthen.
In April, we completed a successful refinancing of our term loan
and revolving line of credit, resulting in a reduction of interest
rates, an extension of maturities and the funding of additional
cash to the balance sheet of approximately $168 million. At quarter
end, we had a cash balance of $741.7 million, and our leverage
ratio of Net Debt to Adjusted EBITDA(1) was at a record low,
slightly above 1.0,” concluded Dr. Berger.
Second Quarter Financial
Results
For the second quarter of 2024, RadNet reported
Total Company Revenue of $459.7 million and Adjusted EBITDA(1) of
$72.3 million. Revenue increased $56.0 million (or 13.9%) and
Adjusted EBITDA(1) increased $11.9 million (or 19.7%) as compared
with the second quarter of 2023.
For the second quarter of 2024, RadNet reported
Digital Health Revenue (inclusive of intersegment revenue) of $15.8
million and Adjusted EBITDA(1) of $3.3 million. Revenue increased
$4.2 million (or 36.4%) and Adjusted EBITDA(1) increased $1.9
million (or 135.2%) as compared with the second quarter of 2023.
Digital Health Revenue and Adjusted EBITDA(1) growth was due in
part from a $3.2 million (or 136.6%) increase in AI Revenue, which
climbed to $5.6 million during the second quarter of 2024.
Unadjusted for unusual or one-time items
impacting the second quarter, Total Company Net Loss for the second
quarter of 2024 was $3.0 million as compared with a Total Company
Net Income of $8.4 million for the second quarter of 2023. Net Loss
Per Share for the second quarter of 2024 was $(0.04), compared with
a Net Income per share of $0.12 in the second quarter of 2023,
based upon a weighted average number of diluted shares outstanding
of 73.4 million shares in 2024 and 60.9 million shares in 2023.
There were a number of unusual or one-time items
impacting the second quarter including: $1.9 million of non-cash
loss from interest rate swaps; $5.6 million of non-cash interest
expense related to extraordinary interest rate swap Other
Comprehensive Income amortization, $0.8 million expense related to
leases for de novo facilities under construction that have yet to
open their operations; $8.8 million of debt restructuring and
extinguishment expenses related to the April 2024 successful debt
refinancing transaction; and $3.3 million of non-capitalized
research and development expenses related to the DeepHealth Cloud
OS and generative AI. Adjusting for the above items, Total Company
Adjusted Earnings(3) was $12.0 million and diluted Adjusted
Earnings Per Share(3) was $0.16 during the second quarter of 2024.
This compares with Total Company Adjusted Earnings(3) of $5.9
million and diluted Adjusted Earnings Per Share(3) of $0.10 during
the second quarter of 2023.
For the second quarter of 2024, as compared with
the prior year’s second quarter, MRI volume increased 16.0%, CT
volume increased 14.8% and PET/CT volume increased 20.4%. Overall
volume, taking into account routine imaging exams, inclusive of
x-ray, ultrasound, mammography and other exams, increased 9.2% 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 2024 and 2023, MRI volume increased 11.7%, CT volume
increased 9.9% and PET/CT volume increased 13.7%. Overall
same-center volume, taking into account routine imaging exams,
inclusive of x-ray, ultrasound, mammography and other exams,
increased 6.1% over the prior year’s same quarter
Six Month Financial Results
For the first six months of 2024, RadNet
reported Total Company Revenue of $891.4 million and Adjusted
EBITDA(1) of $130.8 million. Revenue increased $97.1 million (or
12.2%) and Adjusted EBITDA(1) increased $22.2 million (or 20.4%) as
compared with the first six months of 2023.
For the first six months of 2024, RadNet
reported Digital Health Revenue (inclusive of intersegment revenue)
of $30.5 million and Adjusted EBITDA(1) of $6.8 million. Revenue
increased $7.8 million (or 34.4%) and Adjusted EBITDA(1) increased
$5.4 million (or 381.5%) as compared with the first six months of
2023. Digital Health Revenue and Adjusted EBITDA(1) growth was due
in part to a $5.8 million (or 128.2%) increase in AI Revenue, which
climbed to $10.3 million during the six month period of 2024.
Unadjusted for one-time or unusual items, Total
Company Net Loss for the first six months of 2024 was $5.8 million
as compared with a Total Company Net Loss of $12.6 million for the
first six months of 2023. Net Loss Per Share for the six month
period of 2024 was $(0.08), compared with a Net Loss per share of
$(0.21) in the six month period of 2023, based upon a weighted
average number of diluted shares outstanding of 71.8 million shares
in 2024 and 59.2 million shares in 2023.
2024 Guidance Update
RadNet amends its previously announced guidance
levels as follows:
Imaging Center Segment |
|
|
Original Guidance Range |
Revised Guidance Range After Q1 Results |
Revised Guidance Range After Q2 Results |
Total Net Revenue |
$1,650 - $1,700 million |
$1,675 - $1,725 million |
$1,685 - $1,735 million |
Adjusted EBITDA(1) |
$250 - $260 million |
$255 - $265 million |
$257 - $267 million |
Capital Expenditures(a) |
$125 - $135 million |
$130 - $140 million |
$135 - $145 million |
Cash Interest Expense(b) |
$40 - $45 million |
$37 - $42 million |
$32 - $37 million |
Free Cash Flow(2) |
$65 - $75 million |
$68 - $78 million |
$72 - $80 million |
|
|
|
|
(a) Net of proceeds from the
sale of equipment, imaging centers and joint venture interests and
New Jersey Imaging Network capital
expenditures.(b) Includes payments to and from
counterparties on interest rate swaps and nets interest income from
our cash balance recorded in Other Income.
Digital Health Segment |
|
|
OriginalGuidance Range |
RevisedGuidance Range AfterQ1 Results |
RevisedGuidance Range AfterQ2 Results |
|
|
|
|
Total Net Revenue (inclusive of intersegment revenue) |
$60 - $70 million |
$60 - $70 million |
$60 - $70 million |
|
|
|
|
Adjusted EBITDA(1) Before
Non-Capitalized R&D - DeepHealth Cloud OS & Generative
AI |
$12 - $14 million |
$13 - $15 million |
$13 - $15 million |
|
|
|
|
Non-Capitalized R&D -
DeepHealth Cloud OS & Generative AI |
$11 - $13 million |
$12 - $14 million |
$12 - $14 million |
|
|
|
|
Capital Expenditures |
$3 - $5 million |
$3 - $5 million |
$3 - $5 million |
|
|
|
|
Free Cash Flow(2) Before
Non-Capitalized R&D - DeepHealth Cloud OS & Generative
AI |
$8 - $10 million |
$8 - $10 million |
$8 - $10 million |
|
|
|
|
Free Cash Flow(2) After
Non-Capitalized R&D - DeepHealth Cloud OS & Generative
AI |
$(2) - $(5) million |
$(2) - $(5) million |
$(2) - $(5) million |
|
|
|
|
“We have increased guidance ranges of our core
Imaging Center reporting segment for Revenue and Adjusted
EBITDA(1). Furthermore, despite increasing the Capital Expenditures
guidance range by $5 million, we are expecting Free Cash Flow(2) to
be higher for the year. This is the result of the projected
increase in Adjusted EBITDA(1) and lower Cash Interest Expense.
With respect to the Digital Health reportable segment, we remain on
track to meet our original guidance levels.”
Conference Call for
Tomorrow
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 2024 results on Thursday, August 8th, 2024 at 7:30
a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Thursday, August 8, 2024Time: 10:30 a.m.
Eastern TimeDial In-Number: 844-826-3035International Dial-In
Number: 412-317-5195
It is recommended that participants dial in
approximately 5 minutes prior to the start of the 10:30 a.m. call.
There will also be simultaneous and archived webcasts available at
https://viavid.webcasts.com/starthere.jsp?ei=1680804&tp_key=197206db18
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 10191154.
About RadNet, Inc.
RadNet, Inc., is the leading national provider
of freestanding, fixed-site diagnostic imaging services and related
information technology solutions (including artificial
intelligence) in the United States based on the number of locations
and annual imaging revenue. RadNet has a network of 398 owned
and/or operated outpatient imaging centers. RadNet's markets
include Arizona, California, Delaware, Florida, Maryland, New
Jersey, New York and Texas. Together with affiliated radiologists,
inclusive of full-time and per diem employees and technologists,
RadNet has a total of over 10,000 employees. For more information,
visit http://www.radnet.com.
Forward Looking Statements
This press release contains “forward-looking
statements” within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements are expressions of our current beliefs,
expectations and assumptions regarding the future of our business,
future plans and strategies, projections, and anticipated future
conditions, events and trends. Forward-looking statements can
generally be identified by words such as: “anticipate,” “intend,”
“plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,”
“strategy,” “future,” “likely,” “may,” “should,” “will” and similar
references to future periods. Forward-looking statements in this
press release include, among others, statements about our
anticipated business results, balance sheet and liquidity and our
future liquidity, burn rate and our continuing ability to service
or refinance our current indebtedness.
Forward-looking statements are neither
historical facts nor assurances of future performance. Because
forward-looking statements relate to the future, they are
inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Our actual results and financial condition
may differ materially from those indicated in the forward-looking
statements. Therefore, you should not place undue reliance on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following:
-
the availability and terms of capital to fund our business;
-
our ability to service our indebtedness, make principal and
interest payments as those payments become due and remain in
compliance with applicable debt covenants, in addition to our
ability to refinance such indebtedness on acceptable terms;
-
changes in general economic conditions nationally and regionally in
the markets in which we operate;
-
the availability and terms of capital to fund the expansion of our
business and improvements to our existing facilities;
-
our ability to maintain our current credit rating and the impact on
our funding costs and competitive position if we do not do so;
- our ability to acquire, develop,
implement and monetize technology, digital health initiatives,
artificial intelligence algorithms and applications;
-
volatility in interest and exchange rates, or credit markets;
-
the adequacy of our cash flow and earnings to fund our current and
future operations;
-
changes in service mix, revenue mix and procedure volumes;
-
delays in receiving payments for services provided;
-
increased bankruptcies among our partner physicians or joint
venture partners;
-
the impact of the political environment and related developments on
the current healthcare marketplace and on our business, including
with respect to the future of the Affordable Care Act;
-
the extent to which the ongoing implementation of healthcare
reform, or changes in or new legislation, regulations or guidance,
enforcement thereof by federal and state regulators or related
litigation result in a reduction in coverage or reimbursement rates
for our services, or other material impacts to our business;
-
closures or slowdowns and changes in labor costs and labor
difficulties, including stoppages affecting either our operations
or our suppliers' abilities to deliver supplies needed in our
facilities;
-
the occurrence of hostilities, political instability or
catastrophic events;
-
the emergence or reemergence of and effects related to future
pandemics, epidemics and infectious diseases; and
-
noncompliance by us with any privacy or security laws or any
cybersecurity incident or other security breach by us or a third
party involving the misappropriation, loss or other unauthorized
use or disclosure of confidential information.
Any forward-looking statement contained in this
current report is based on information currently available to us
and speaks only as of the date on which it is made. We undertake no
obligation to publicly update any forward-looking statement,
whether written or oral, that we may make from time to time,
whether as a result of changed circumstances, new information,
future developments or otherwise, except as required by applicable
law.
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.
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, 2024 |
|
December 31, 2023 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and Cash equivalents |
$ |
741,679 |
|
|
$ |
342,570 |
|
Accounts receivable |
|
195,288 |
|
|
|
163,707 |
|
Due from affiliates |
|
29,221 |
|
|
|
25,342 |
|
Prepaid expenses and other current assets |
|
38,536 |
|
|
|
47,657 |
|
Total current assets |
|
1,004,724 |
|
|
|
579,276 |
|
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS |
|
|
|
Property and equipment, net |
|
652,882 |
|
|
|
604,401 |
|
Operating lease right-of-use assets |
|
624,081 |
|
|
|
596,032 |
|
Total property, equipment and right-of-use assets |
|
1,276,963 |
|
|
|
1,200,433 |
|
OTHER ASSETS |
|
|
|
Goodwill |
|
708,980 |
|
|
|
679,463 |
|
Other intangible assets |
|
84,049 |
|
|
|
90,615 |
|
Deferred financing costs |
|
2,505 |
|
|
|
1,643 |
|
Investment in joint ventures |
|
100,844 |
|
|
|
92,710 |
|
Deposits and other |
|
51,358 |
|
|
|
46,333 |
|
Total Assets |
$ |
3,229,423 |
|
|
$ |
2,690,473 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable, accrued expenses and other |
$ |
353,898 |
|
|
$ |
342,940 |
|
Due to affiliates |
|
32,375 |
|
|
|
15,910 |
|
Deferred revenue |
|
4,462 |
|
|
|
4,647 |
|
Current operating lease liability |
|
59,251 |
|
|
|
55,981 |
|
Current portion of notes payable |
|
24,215 |
|
|
|
17,974 |
|
Total current liabilities |
|
474,201 |
|
|
|
437,452 |
|
LONG-TERM LIABILITIES |
|
|
|
Long-term operating lease liability |
|
632,385 |
|
|
|
605,097 |
|
Notes payable, net of current portion |
|
1,002,392 |
|
|
|
812,068 |
|
Deferred tax liability, net |
|
17,471 |
|
|
|
15,776 |
|
Other non-current liabilities |
|
10,134 |
|
|
|
6,721 |
|
Total liabilities |
|
2,136,583 |
|
|
|
1,877,114 |
|
EQUITY |
|
|
|
RadNet, Inc.
stockholders' equity: |
|
|
|
Common stock
- $0.0001 par value, 200,000,000 shares authorized; 73,968,042 and
67,956,318 shares issued and outstanding at June 30, 2024 and
December 31, 2023, respectively |
|
7 |
|
|
|
7 |
|
Additional paid-in-capital |
|
974,355 |
|
|
|
722,750 |
|
Accumulated other comprehensive loss |
|
(8,057 |
) |
|
|
(12,484 |
) |
Accumulated deficit |
|
(85,339 |
) |
|
|
(79,578 |
) |
Total RadNet, Inc.'s Stockholders' equity: |
|
880,966 |
|
|
|
630,695 |
|
Noncontrolling interests |
|
211,874 |
|
|
|
182,664 |
|
Total Equity |
|
1,092,840 |
|
|
|
813,359 |
|
Total liabilities and equity |
$ |
3,229,423 |
|
|
$ |
2,690,473 |
|
|
|
|
|
RADNET, INC.
AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS |
(IN
THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA) |
(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
REVENUE |
|
|
|
|
|
|
|
Service fee revenue |
$ |
422,745 |
|
|
$ |
363,918 |
|
|
$ |
819,934 |
|
|
$ |
716,338 |
|
Revenue under capitation arrangements |
|
36,969 |
|
|
|
39,797 |
|
|
|
71,487 |
|
|
|
77,941 |
|
Total service revenue |
|
459,714 |
|
|
|
403,715 |
|
|
|
891,421 |
|
|
|
794,279 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
Cost of operations, excluding depreciation and amortization |
|
389,724 |
|
|
|
345,147 |
|
|
|
777,313 |
|
|
|
697,012 |
|
Depreciation and amortization |
|
34,475 |
|
|
|
32,180 |
|
|
|
66,843 |
|
|
|
63,495 |
|
Loss (gain) on sale and disposal of equipment and other |
|
401 |
|
|
|
77 |
|
|
|
587 |
|
|
|
656 |
|
Severance costs |
|
268 |
|
|
|
1,870 |
|
|
|
493 |
|
|
|
2,004 |
|
Total operating expenses |
|
424,868 |
|
|
|
379,274 |
|
|
|
845,236 |
|
|
|
763,167 |
|
INCOME (LOSS) FROM OPERATIONS |
|
34,846 |
|
|
|
24,441 |
|
|
|
46,185 |
|
|
|
31,112 |
|
OTHER INCOME AND EXPENSES |
|
|
|
|
|
|
|
Interest expense |
|
26,082 |
|
|
|
16,039 |
|
|
|
42,349 |
|
|
|
31,761 |
|
Equity in earnings of joint ventures |
|
(3,389 |
) |
|
|
(1,423 |
) |
|
|
(7,713 |
) |
|
|
(2,851 |
) |
Non-cash change in fair value of interest rate hedge |
|
1,890 |
|
|
|
(4,159 |
) |
|
|
674 |
|
|
|
(66 |
) |
Debt restructuring and extinguishment expenses |
|
8,762 |
|
|
|
- |
|
|
|
8,762 |
|
|
|
- |
|
Other expenses (income) |
|
(7,900 |
) |
|
|
40 |
|
|
|
(10,834 |
) |
|
|
1,472 |
|
Total other (income) expenses |
|
25,445 |
|
|
|
10,497 |
|
|
|
33,238 |
|
|
|
30,316 |
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
9,401 |
|
|
|
13,944 |
|
|
|
12,947 |
|
|
|
796 |
|
Provision for income taxes |
|
(2,456 |
) |
|
|
614 |
|
|
|
(592 |
) |
|
|
(521 |
) |
NET
INCOME (LOSS) |
|
6,945 |
|
|
|
14,558 |
|
|
|
12,355 |
|
|
|
275 |
|
Net income (loss) attributable to noncontrolling interests |
|
9,927 |
|
|
|
6,189 |
|
|
|
18,116 |
|
|
|
12,911 |
|
NET
INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON
STOCKHOLDERS |
$ |
(2,982 |
) |
|
$ |
8,369 |
|
|
$ |
(5,761 |
) |
|
$ |
(12,636 |
) |
|
|
|
|
|
|
|
|
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET,
INC. COMMON STOCKHOLDERS |
$ |
(0.04 |
) |
|
$ |
0.14 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET,
INC. COMMON STOCKHOLDERS |
$ |
(0.04 |
) |
|
$ |
0.12 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.21 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
Basic |
|
73,419,124 |
|
|
|
59,880,803 |
|
|
|
71,795,080 |
|
|
|
59,221,453 |
|
Diluted |
|
73,419,124 |
|
|
|
60,916,985 |
|
|
|
71,795,080 |
|
|
|
59,221,453 |
|
|
|
|
|
|
|
|
|
RADNET, INC.
AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF CASHFLOWS |
(IN
THOUSANDS) |
(unaudited) |
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Net income (loss) |
$ |
12,355 |
|
|
$ |
275 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
66,843 |
|
|
|
63,495 |
|
Amortization of operating lease assets |
|
30,006 |
|
|
|
31,601 |
|
Equity in earnings of joint ventures |
|
(6,713 |
) |
|
|
6,096 |
|
Amortization deferred financing costs and loan discount |
|
1,541 |
|
|
|
1,494 |
|
Loss (Gain) on sale and disposal of equipment |
|
587 |
|
|
|
656 |
|
Loss on extinguishment of debt |
|
2,080 |
|
|
|
- |
|
Amortization of cash flow hedge |
|
7,256 |
|
|
|
1,844 |
|
Non-cash change in fair value of interest rate hedge |
|
674 |
|
|
|
(66 |
) |
Stock-based compensation |
|
16,645 |
|
|
|
17,055 |
|
Change in fair value of contingent consideration |
|
1,974 |
|
|
|
3,098 |
|
Changes in operating assets and liabilities, net of assets acquired
and liabilities assumed in purchase transactions: |
|
|
|
Accounts receivable |
|
(31,581 |
) |
|
|
(8,124 |
) |
Other current assets |
|
5,242 |
|
|
|
4,703 |
|
Other assets |
|
(5,553 |
) |
|
|
(6,590 |
) |
Deferred taxes |
|
1,791 |
|
|
|
(2,249 |
) |
Operating lease liability |
|
(27,707 |
) |
|
|
(28,582 |
) |
Deferred revenue |
|
(185 |
) |
|
|
1,033 |
|
Accounts payable, accrued expenses and other |
|
57,835 |
|
|
|
14,952 |
|
Net cash provided by operating activities |
|
133,090 |
|
|
|
100,691 |
|
CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Purchase of imaging facilities and other acquisitions |
|
(32,771 |
) |
|
|
(10,315 |
) |
Purchase of property and equipment and other |
|
(104,095 |
) |
|
|
(95,380 |
) |
Proceeds from sale of equipment |
|
9 |
|
|
|
73 |
|
Equity contributions in existing and purchase of interest in joint
ventures |
|
(1,421 |
) |
|
|
(288 |
) |
Net cash used in investing activities |
|
(138,278 |
) |
|
|
(105,910 |
) |
CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
Principal payments on notes and leases payable |
|
(2,624 |
) |
|
|
(1,052 |
) |
Payments on Term Loan Debt |
|
(682,438 |
) |
|
|
(7,376 |
) |
Proceeds from issuance of new debt, net of issuing costs |
|
863,869 |
|
|
|
- |
|
Contribution from noncontrolling interests |
|
4,169 |
|
|
|
- |
|
Payments on contingent consideration |
|
(3,614 |
) |
|
|
- |
|
Distributions paid to noncontrolling interests |
|
(2,423 |
) |
|
|
(3,523 |
) |
Proceeds from sale of economic interests in majority owned
subsidiary, net of taxes |
|
8,713 |
|
|
|
- |
|
Proceeds from issuance of common stock |
|
218,385 |
|
|
|
246,202 |
|
Proceeds from issuance of common stock upon exercise of
options |
|
367 |
|
|
|
51 |
|
Net cash provided by financing activities |
|
404,404 |
|
|
|
234,302 |
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
(107 |
) |
|
|
(266 |
) |
NET
DECREASE IN CASH AND CASH EQUIVALENTS |
|
399,109 |
|
|
|
228,817 |
|
CASH
AND CASH EQUIVALENTS, beginning of period |
|
342,570 |
|
|
|
127,834 |
|
CASH
AND CASH EQUIVALENTS, end of period |
|
741,679 |
|
|
|
356,651 |
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION |
|
|
|
Cash paid during the period for interest |
$ |
34,203 |
|
|
$ |
39,301 |
|
Cash paid during the period for income taxes |
$ |
705 |
|
|
$ |
201 |
|
|
|
|
|
RADNET, INC.
AND SUBSIDIARIES |
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET,
INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA |
(IN
THOUSANDS) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Net income (loss) attributable to Radnet, Inc. common
stockholders |
$ |
(2,982 |
) |
|
$ |
8,369 |
|
|
$ |
(5,761 |
) |
|
$ |
(12,636 |
) |
Income
taxes |
|
2,456 |
|
|
|
(614 |
) |
|
|
592 |
|
|
|
521 |
|
Interest
expense |
|
26,082 |
|
|
|
16,039 |
|
|
|
42,349 |
|
|
|
31,761 |
|
Severance
costs |
|
268 |
|
|
|
1,870 |
|
|
|
493 |
|
|
|
2,004 |
|
Depreciation
and amortization |
|
34,475 |
|
|
|
32,180 |
|
|
|
66,843 |
|
|
|
63,495 |
|
Non-cash
employee stock-based compensation |
|
4,749 |
|
|
|
4,871 |
|
|
|
16,646 |
|
|
|
17,056 |
|
Loss (gain)
on sale and disposal of equipment and other |
|
401 |
|
|
|
77 |
|
|
|
587 |
|
|
|
656 |
|
Non-cash
change in fair value of interest rate hedge |
|
1,890 |
|
|
|
(4,159 |
) |
|
|
674 |
|
|
|
(66 |
) |
Other
expenses (income) |
|
(7,900 |
) |
|
|
40 |
|
|
|
(10,834 |
) |
|
|
1,472 |
|
Non-Capitalized R&D - DeepHealth Cloud OS & Generative
AI |
|
3,317 |
|
|
|
- |
|
|
|
6,632 |
|
|
|
- |
|
Loss (gain)
on extinguishment of debt and related expenses |
|
8,762 |
|
|
|
- |
|
|
|
8,762 |
|
|
|
- |
|
Non-cash
change to contingent consideration |
|
- |
|
|
|
1,014 |
|
|
|
1,974 |
|
|
|
2,630 |
|
Non-operational rent expenses |
|
809 |
|
|
|
759 |
|
|
|
1,832 |
|
|
|
1,718 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Including EBITDA from Digital
Health |
$ |
72,327 |
|
|
$ |
60,446 |
|
|
$ |
130,789 |
|
|
$ |
108,611 |
|
|
|
|
|
|
|
|
|
EBITDA from
Digital Health |
|
3,269 |
|
|
|
1,390 |
|
|
|
6,789 |
|
|
|
1,410 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA excluding EBITDA from Digital
Health |
$ |
69,058 |
|
|
$ |
59,056 |
|
|
$ |
124,000 |
|
|
$ |
107,201 |
|
|
|
|
|
|
|
|
|
PAYMENTS BY
PAYOR CLASS |
|
|
|
|
|
Second Quarter |
|
2024 |
|
|
Commercial Insurance |
58.5 |
% |
Medicare |
22.1 |
% |
Capitation |
8.0 |
% |
Medicaid |
2.4 |
% |
Workers
Compensation/Personal Injury |
2.4 |
% |
Other* |
6.5 |
% |
Total |
100.0 |
% |
|
|
* Includes management fee, teleradiology and Digital Health
financial reporting unit revenue. |
|
|
PAYMENTS BY
MODALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
Full Year |
|
Full Year |
|
Full Year |
|
2024 |
|
2023 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
MRI |
37.2 |
% |
|
36.8 |
% |
|
36.8 |
% |
|
36.0 |
% |
CT |
15.8 |
% |
|
16.8 |
% |
|
17.5 |
% |
|
17.2 |
% |
PET/CT |
7.1 |
% |
|
6.4 |
% |
|
5.8 |
% |
|
5.5 |
% |
X-ray |
6.2 |
% |
|
6.5 |
% |
|
6.7 |
% |
|
3.9 |
% |
Ultrasound |
13.9 |
% |
|
12.9 |
% |
|
12.6 |
% |
|
12.7 |
% |
Mammography |
16.1 |
% |
|
16.0 |
% |
|
15.3 |
% |
|
16.1 |
% |
Nuclear
Medicine |
1.0 |
% |
|
0.8 |
% |
|
0.9 |
% |
|
1.0 |
% |
Other |
2.7 |
% |
|
3.9 |
% |
|
4.5 |
% |
|
4.6 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
PROCEDURES
BY MODALITY* |
|
|
|
|
|
Second Quarter |
Second
Quarter |
|
2024 |
|
2023 |
|
|
|
|
MRI |
449,781 |
|
387,619 |
CT |
269,939 |
|
235,138 |
PET/CT |
18,107 |
|
15,036 |
Nuclear
Medicine |
9,610 |
|
9,463 |
Ultrasound |
664,043 |
|
620,660 |
Mammography |
483,510 |
|
450,747 |
X-ray and
Other |
890,814 |
|
832,719 |
|
|
|
|
Total |
2,785,804 |
|
2,551,382 |
|
|
|
|
|
|
|
|
* Volumes include wholy owned and joint venture centers. |
|
|
|
|
RADNET, INC.
AND SUBSIDIARIES |
SCHEDULE OF
ADJUSTED EARNINGS AND EARNINGS PER
SHARE(3) |
(IN
THOUSANDS EXCEPT SHARE DATA) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
June 30, |
|
|
|
2024 |
|
2023(iv) |
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO RADNET, INC. |
|
|
|
|
|
COMMON STOCKHOLDERS |
$ |
(2,982 |
) |
|
$ |
8,369 |
|
|
|
|
|
|
|
|
|
Add/Subtract non-cash change in fair value of interest rate swaps
(i) |
|
1,890 |
|
|
|
(4,159 |
) |
|
|
Non-cash interest expense from extraordinary interest rate swap OCI
amortization |
|
5,559 |
|
|
|
- |
|
|
|
Non-operational rent expenses (iii) |
|
809 |
|
|
|
759 |
|
|
|
Contingent consideration |
|
- |
|
|
|
1,014 |
|
|
|
Non-Capitalized R&D - DeepHealth Cloud OS & Generative
AI |
|
3,317 |
|
|
|
- |
|
|
|
Debt restructuring and extinguishment expenses (v) |
|
8,762 |
|
|
|
- |
|
|
|
Total adjustments - loss (gain) |
|
20,337 |
|
|
|
(2,386 |
) |
|
|
Subtract tax impact of Adjustments (ii) |
|
(5,308 |
) |
|
|
(105 |
) |
|
|
Tax effected impact of adjustments |
|
15,029 |
|
|
|
(2,491 |
) |
|
|
|
|
|
|
TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE |
|
|
|
|
|
TO RADNET, INC. COMMON SHAREHOLDERS |
|
15,029 |
|
|
|
(2,491 |
) |
|
|
|
|
|
|
ADJUSTED NET INCOME ATTRIBUTABLE TO RADNET,
INC. |
|
12,047 |
|
|
|
5,878 |
|
|
|
COMMON STOCKHOLDERS |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
Diluted |
|
74,944,366 |
|
|
|
60,916,985 |
|
|
|
|
|
|
|
ADJUSTED DILUTED NET INCOME PER SHARE |
|
|
|
|
|
ATTRIBUTABLE TO RADNET, INC. COMMON
STOCKHOLDERS |
$ |
0.16 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
(i) Impact from the change in fair value of the swpas during the
quarter. Excludes the recurring amortization |
|
|
of the accumulation of
the changes in fair value out of Other Comprehensive Income that
existed prior to the hedges |
becoming ineffective. |
|
|
|
(ii) Tax effected
using 26.1% and (4.40)% blended federal and state effective tax
rate for the second quarter of 2024 and 2023, respectively. |
(iii) Represents rent
expense associated with de novo sites under construction prior to
them becoming operational. |
(iv) Restated from
what was presented in 2023 to include the losses of the AI
businesses (ie, not add the losses back to earnings as was |
the case in 2023). The restated Adjusted Earnings for 2023 is due
to the fact that AI is no longer its own reportable operating
segment |
and is now embedded in the Digital Health reportable operating
segment. |
|
|
|
(v) Extraordinary expense related to the Company's successful April
2024 debt refinancing transaction. |
|
|
|
|
|
|
|
|
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
Expense. 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.
(3) The Company defines Adjusted Earnings (Loss)
Per Share as net income or loss attributable to RadNet, Inc. common
stockholders and excludes losses or gains on the disposal of
equipment, loss on debt extinguishments, bargain purchase gains,
severance costs, loss on impairment, loss or gain on swap
valuation, gain on extinguishment of debt, unusual or non-recurring
entries that impact the Company’s tax provision and any other
non-recurring or unusual transactions recorded during the
period.
Adjusted Earnings (Loss) Per Share is reconciled
to its nearest comparable GAAP financial measure. Adjusted Earnings
(Loss) Per Share is a non-GAAP financial measure used as analytical
indicator by RadNet management and the healthcare industry to
assess business performance. Adjusted Earnings Per Share should not
be considered a measure of financial performance under GAAP, and
the items excluded from Adjusted Earnings Per Share 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 Earnings Per Share 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.
RadNet (NASDAQ:RDNT)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
RadNet (NASDAQ:RDNT)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024