RadNet, Inc. (NASDAQ: RDNT), a national leader in
providing high-quality, cost-effective, fixed-site outpatient
diagnostic imaging services through a network of 363 owned and
operated outpatient imaging centers, today reported financial
results for its first quarter of 2023.
Dr. Howard Berger, President and Chief Executive
Officer of RadNet, commented, “I am very pleased with the
continuing strength of our core imaging center business. In our
Imaging Center operating segment, Revenue increased almost 14% and
Adjusted EBITDA(1) increased over 25% from last year’s first
quarter. Our procedural volumes both on an aggregate and
same-center basis demonstrated strong growth, in a quarter that is
seasonally our weakest. Though the cost and availability of labor
continues to be challenging, we are having more success in filling
open positions and retaining talented team members.”
“Given the positive trends we are experiencing
in our core business and the strong financial performance of the
first quarter, we have elected to revise certain guidance levels
upwards in anticipation of financial results that we believe will
exceed our original expectations. We have increased 2023 guidance
ranges for Revenue and Adjusted EBITDA(1),” added Dr.
Berger.
Dr. Berger continued, “We are executing on all
facets of our strategic plan. In response to the heavy demand we
are experiencing in our core imaging center geographies, we are in
process of growing capacity and access through the de novo strategy
we embarked on last year. We also continue to grow our joint
venture offerings through establishing new health system
partnerships and the expansion of existing ones. Furthermore, we
believe that market pressures from a challenging environment for
labor, significant rising interest rates and a lack of availability
of capital could accelerate acquisition opportunities in an
industry that remains highly fragmented and that is mainly
comprised of smaller operators who lack the economies of scale that
we have achieved. We also continue to make strides in AI that
should materially enhance the accuracy, efficiency and margin
profile of our service offerings in the coming years. In the coming
quarters, we will be expanding our roll-out of the Enhanced Breast
Cancer Detection (EBCD) program we launched in November of last
year, powered by our DeepHealth AI technologies, and we continue to
innovate new features and capabilities of our AI engines for
breast, lung and prostate imaging.”
Financial Results
For the first quarter of 2023, RadNet reported
Revenue from its Imaging Center reporting segment of $388.4 million
and Adjusted EBITDA(1), excluding Losses from AI reporting segment,
of $52.7 million. Revenue increased $47.3 million (or 13.9%) and
Adjusted EBITDA(1), excluding Losses from the AI reporting segment,
increased $10.9 million (or 26.2%). Including our AI reporting
segment Revenue of $2.1 million, Revenue was $390.6 million in the
first quarter of 2023, an increase of 14.3% from $341.8 million in
last year’s first quarter. Unadjusted for AI reporting segment
Adjusted EBITDA(1) losses of $4.5 million in the first quarter of
2023 and $3.6 million in the first quarter of 2022, Adjusted
EBITDA(1) for the first quarter of 2023 was $48.2 million as
compared with $38.1 million in the first quarter of 2022.
Net Loss for the first quarter of 2023 was $21.0
million as compared with a Diluted Net Income of $3.0 million for
the first quarter of 2022. Net Loss Per Share for the first quarter
of 2023 was $(0.36), compared with a Diluted Net Income per share
of $0.05 in the first quarter of 2022, based upon a weighted
average number of diluted shares outstanding of 57.7 million shares
in 2023 and 56.4 million shares in 2022.
There were a number of unusual or one-time items
impacting the first quarter including: $4.1 million of non-cash
loss from interest rate swaps; $959,000 expense related to leases
for our de novo facilities under construction that have yet to open
their operations; $1.6 million non-cash increase to contingent
consideration related to completed acquisitions; $719,000 expense
related to the re-valuation of holdbacks related to completed
acquisitions; and $7.6 million of net pre-tax expenses related to
our AI division. Adjusting for the above items, Adjusted Loss(3)
from the Imaging Center reporting segment was $4.7 million and
diluted Adjusted Loss Per Share(3) was $(0.08) during the first
quarter of 2023. This compares with Adjusted Loss(3) from the
Imaging Center reporting segment of $7.6 million and diluted
Adjusted Loss Per Share(3) of $(0.13) during the first quarter of
2022.
Also affecting Net Income in the first quarter
of 2023 were certain non-cash expenses and unusual items including:
$12.2 million of non-cash employee stock compensation expense
resulting from the vesting of certain options and restricted stock;
$134,000 of severance paid in connection with headcount reductions
related to cost savings initiatives; and $746,000 of non-cash
amortization of deferred financing costs and loan discounts related
to financing fees paid as part of our existing credit
facilities.
For the first quarter of 2023, as compared with
the prior year’s first quarter, MRI volume increased 16.7%, CT
volume increased 16.8% and PET/CT volume increased 20.9%. Overall
volume, taking into account routine imaging exams, inclusive of
x-ray, ultrasound, mammography and other exams, increased 14.0%
over the prior year’s first quarter. On a same-center basis,
including only those centers which were part of RadNet for both the
first quarters of 2023 and 2022, MRI volume increased 11.9%, CT
volume increased 10.6% and PET/CT volume increased 20.5%. Overall
same-center volume, taking into account routine imaging exams,
inclusive of x-ray, ultrasound, mammography and other exams,
increased 9.3% over the prior year’s same quarter.
2023 Revised Guidance
RadNet amends its previously announced guidance
levels as follows:
Imaging Center Segment |
|
|
|
|
Original Guidance Range |
Revised Guidance Range |
Revenue |
$1,525 million - $1,575
million |
$1,550 million - $1,600
million |
Adjusted EBITDA(1) |
$220 million - $230
million |
$225 million - $235
million |
Capital Expenditures (a) |
$105 million - $115
million |
$110 million - $120
million |
Cash Paid for Interest
(c) |
$35 million - $40 million |
$45 million - $50 million |
Free Cash Flow Generation
(b)(2) |
$70 million - $80 million |
$65 million - $70 million |
|
|
|
Artificial Intelligence Segment |
|
|
|
|
Original Guidance Range |
Revised Guidance Range |
Revenue |
$16 million - $18 million |
Unchanged |
Adjusted EBITDA(1) (Loss) |
$(9) million - $(11)
million |
Unchanged |
(a) Net of proceeds from the sale of
equipment, imaging centers and joint venture interests, and
excludes New Jersey Imaging Network capital expenditures.(b)
Defined by the Company as Adjusted EBITDA(1) from Imaging Center
Segment less Capital Expenditures and Cash Paid for
Interest.(c) Net of payments to and from counterparties on
interest rate swaps.
Dr. Berger highlighted, “We have increased our
guidance ranges for Revenue and Adjusted EBITDA(1) to reflect the
first quarter’s strong financial results as compared with our
original budget. Though we remain vigilant about the economic
environment, supply chain disruptions, inflation and the
possibility of further variants of COVID-19, we have opportunities
to expand our operations in all of our markets both organically and
through new acquisitions and joint ventures. We also are increasing
our guidance levels for cash interest expense and capital
expenditures to account for both the rising cost of interest on
that portion of our debt which is not subject to our interest rate
swaps and to fund the completion of certain of our de novo
facilities scheduled to open during the remainder of 2023 and the
first half of 2024.”
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 first
quarter 2023 results on Tuesday, May 9th, 2023 at 7:30 a.m. Pacific
Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Tuesday, May 9, 2023Time: 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 to 10 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=1612864&tp_key=c9dd50c578
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 10178605.
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 363 owned and/or operated outpatient
imaging centers. RadNet's markets include California, Maryland,
Delaware, New Jersey, New York, Florida and Arizona. In addition,
RadNet provides radiology information technology and artificial
intelligence 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 technologists,
RadNet has a total of over 9,000 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 we make regarding
response to and the expected future impacts of COVID-19, including
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 impact of a pandemic, significant deterioration in the broader
economy, severe acts of nature or other exogenous factors on our
business, suppliers, payors, customers, referral sources, partners,
patients and employees;
-
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 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) |
|
|
March 31, 2023 |
December 31, 2022 |
|
(unaudited) |
|
ASSETS |
|
|
CURRENT ASSETS |
|
|
Cash and cash equivalents |
$ |
90,844 |
|
$ |
127,834 |
|
Accounts receivable |
|
176,354 |
|
|
166,357 |
|
Due from affiliates |
|
20,387 |
|
|
18,971 |
|
Prepaid expenses and other current assets |
|
55,100 |
|
|
54,022 |
|
Total current assets |
|
342,685 |
|
|
367,184 |
|
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS |
|
|
Property and equipment, net |
|
545,492 |
|
|
565,961 |
|
Operating lease right-of-use assets |
|
623,309 |
|
|
603,524 |
|
Total property, equipment and right-of-use assets |
|
1,168,801 |
|
|
1,169,485 |
|
OTHER ASSETS |
|
|
Goodwill |
|
687,085 |
|
|
677,665 |
|
Other intangible assets |
|
103,003 |
|
|
106,228 |
|
Deferred financing costs |
|
2,122 |
|
|
2,280 |
|
Investment in joint ventures |
|
59,321 |
|
|
57,893 |
|
Deposits and other |
|
51,052 |
|
|
53,172 |
|
Total assets |
$ |
2,414,069 |
|
$ |
2,433,907 |
|
LIABILITIES AND EQUITY |
|
|
CURRENT LIABILITIES |
|
|
Accounts payable, accrued expenses and other |
$ |
296,727 |
|
|
369,595 |
|
Due to affiliates |
|
31,548 |
|
|
23,100 |
|
Deferred revenue |
|
4,343 |
|
|
4,021 |
|
Current operating lease liability |
|
58,590 |
|
|
57,607 |
|
Current portion of notes payable |
|
15,935 |
|
|
12,400 |
|
Total current liabilities |
|
407,143 |
|
|
466,723 |
|
LONG-TERM LIABILITIES |
|
|
Long-term operating lease liability |
|
623,538 |
|
|
604,117 |
|
Notes payable, net of current portion |
|
852,354 |
|
|
839,344 |
|
Deferred tax liability, net |
|
10,410 |
|
|
9,256 |
|
Other non-current liabilities |
|
27,523 |
|
|
23,015 |
|
Total liabilities |
|
1,920,968 |
|
|
1,942,455 |
|
EQUITY |
|
|
RadNet, Inc. stockholders' equity: |
|
|
Common stock - $0.0001 par value, 200,000,000 shares authorized;
58,270,290 and 57,723,125 shares issued and outstanding at March
31, 2023 and December 31, 2022, respectively |
|
6 |
|
|
6 |
|
Additional paid-in-capital |
|
448,522 |
|
|
436,288 |
|
Accumulated other comprehensive loss |
|
(16,978 |
) |
|
(20,677 |
) |
Accumulated deficit |
|
(103,628 |
) |
|
(82,622 |
) |
Total RadNet, Inc.'s stockholders' equity |
|
327,922 |
|
|
332,995 |
|
Noncontrolling interests |
|
165,179 |
|
|
158,457 |
|
Total equity |
|
493,101 |
|
|
491,452 |
|
Total liabilities and equity |
$ |
2,414,069 |
|
$ |
2,433,907 |
|
|
|
|
RADNET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(IN THOUSANDS EXCEPT SHARE AND PER SHARE
DATA) |
(unaudited) |
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
REVENUE |
|
|
|
Service fee revenue |
$ |
352,420 |
|
|
$ |
303,276 |
|
Revenue under capitation arrangements |
|
38,144 |
|
|
|
38,491 |
|
Total service revenue |
|
390,564 |
|
|
|
341,767 |
|
OPERATING EXPENSES |
|
|
|
Cost of operations, excluding depreciation and amortization |
|
351,865 |
|
|
|
315,039 |
|
Depreciation and amortization |
|
31,315 |
|
|
|
27,118 |
|
Loss on sale and disposal of equipment and other |
|
579 |
|
|
|
1,128 |
|
Severance costs |
|
134 |
|
|
|
201 |
|
Total operating expenses |
|
383,893 |
|
|
|
343,486 |
|
INCOME (LOSS) FROM OPERATIONS |
|
6,671 |
|
|
|
(1,719 |
) |
|
|
|
|
OTHER INCOME AND EXPENSES |
|
|
|
Interest expense |
|
15,722 |
|
|
|
11,593 |
|
Equity in earnings of joint ventures |
|
(1,428 |
) |
|
|
(2,517 |
) |
Non-cash change in fair value of interest rate hedge |
|
4,093 |
|
|
|
(20,819 |
) |
Other expenses |
|
1,432 |
|
|
|
165 |
|
Total other expense (income) |
|
19,819 |
|
|
|
(11,578 |
) |
(LOSS) INCOME BEFORE INCOME TAXES |
|
(13,148 |
) |
|
|
9,859 |
|
Provision for income taxes |
|
(1,135 |
) |
|
|
(1,496 |
) |
NET (LOSS) INCOME |
|
(14,283 |
) |
|
|
8,363 |
|
Net income attributable to noncontrolling interests |
|
6,722 |
|
|
|
5,350 |
|
NET (LOSS) INCOME ATTRIBUTABLE TO RADNET, INC. COMMON
STOCKHOLDERS |
$ |
(21,005 |
) |
|
$ |
3,013 |
|
|
|
|
|
BASIC NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET,
INC. COMMON STOCKHOLDERS |
$ |
(0.36 |
) |
|
$ |
0.05 |
|
|
|
|
|
DILUTED NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET,
INC. COMMON STOCKHOLDERS |
$ |
(0.36 |
) |
|
$ |
0.05 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
Basic |
|
57,701,439 |
|
|
|
55,303,007 |
|
Diluted |
|
57,701,439 |
|
|
|
56,362,193 |
|
|
|
|
|
RADNET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
CASHFLOWS |
(IN THOUSANDS) |
(unaudited) |
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Net (loss) income |
$ |
(14,283 |
) |
|
$ |
8,363 |
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
31,315 |
|
|
|
27,118 |
|
Amortization of operating lease assets |
|
15,699 |
|
|
|
16,802 |
|
Equity in earnings of joint ventures, net of dividends |
|
(1,835 |
) |
|
|
(2,517 |
) |
Amortization deferred financing costs and loan discount |
|
746 |
|
|
|
648 |
|
Loss on sale and disposal of equipment |
|
579 |
|
|
|
1,128 |
|
Amortization of cash flow hedge |
|
922 |
|
|
|
923 |
|
Non-cash change in fair value of interest rate hedge |
|
4,093 |
|
|
|
(20,819 |
) |
Stock-based compensation |
|
12,185 |
|
|
|
11,102 |
|
Change in fair value of contingent consideration |
|
2,335 |
|
|
|
(501 |
) |
Changes in operating assets and liabilities, net of assets acquired
and liabilities assumed in purchase transactions: |
|
|
|
Accounts receivable |
|
(9,997 |
) |
|
|
(23,904 |
) |
Other current assets |
|
(1,691 |
) |
|
|
(4,065 |
) |
Other assets |
|
(2,726 |
) |
|
|
(1,417 |
) |
Deferred taxes |
|
942 |
|
|
|
1,387 |
|
Operating leases |
|
(15,080 |
) |
|
|
(15,859 |
) |
Deferred revenue |
|
335 |
|
|
|
(4,519 |
) |
Accounts payable, accrued expenses and other |
|
9,077 |
|
|
|
7,031 |
|
Net cash provided by operating activities |
|
32,616 |
|
|
|
901 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Purchase of imaging facilities and other acquisitions |
|
(9,644 |
) |
|
|
(25,123 |
) |
Purchase of property and equipment and other |
|
(55,915 |
) |
|
|
(36,558 |
) |
Proceeds from sale of equipment |
|
3 |
|
|
|
117 |
|
Net cash used in investing activities |
|
(65,556 |
) |
|
|
(61,564 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
Principal payments on notes and leases payable |
|
(184 |
) |
|
|
- |
|
Payments on Term Loan Debt |
|
(3,688 |
) |
|
|
(3,313 |
) |
Proceeds from issuance of common stock upon exercise of
options |
|
51 |
|
|
|
- |
|
Net cash used in financing activities |
|
(3,821 |
) |
|
|
(3,313 |
) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
(229 |
) |
|
|
83 |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
(36,990 |
) |
|
|
(63,893 |
) |
CASH AND CASH EQUIVALENTS, beginning of
period |
|
127,834 |
|
|
|
134,606 |
|
CASH AND CASH EQUIVALENTS, end of period |
$ |
90,844 |
|
|
$ |
70,713 |
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION |
|
|
|
Cash paid during the period for interest |
$ |
21,471 |
|
|
$ |
7,448 |
|
Cash paid during the period for income taxes |
$ |
40 |
|
|
$ |
34 |
|
|
|
|
|
RADNET, INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET,
INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA |
(IN THOUSANDS) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Net (loss) income attributable to RadNet, Inc. common
stockholders |
$ |
(21,005 |
) |
|
$ |
3,013 |
|
Income taxes |
|
1,135 |
|
|
|
1,496 |
|
Interest expense |
|
15,722 |
|
|
|
11,593 |
|
Severance costs |
|
134 |
|
|
|
201 |
|
Depreciation and amortization |
|
31,315 |
|
|
|
27,118 |
|
Non-cash employee stock-based compensation |
|
12,185 |
|
|
|
11,102 |
|
Loss on sale and disposal of equipment and other |
|
579 |
|
|
|
1,128 |
|
Non-cash change in fair value of interest rate hedge |
|
4,093 |
|
|
|
(20,819 |
) |
Other expenses |
|
1,432 |
|
|
|
165 |
|
Legal settlements |
|
— |
|
|
|
2,197 |
|
Contingent consideration |
|
1,616 |
|
|
|
— |
|
Non operational rent expenses |
|
959 |
|
|
|
938 |
|
Adjusted EBITDA Including
Losses from AI Segment and Provider relief funding |
$ |
48,165 |
|
|
$ |
38,132 |
|
|
|
|
|
EBITDA Losses from AI Segment |
|
4,496 |
|
|
|
3,585 |
|
|
|
|
|
Adjusted EBITDA excluding Losses from AI Segment and
Provider relief funding |
$ |
52,661 |
|
|
$ |
41,717 |
|
|
|
|
|
PAYOR CLASS
BREAKDOWN |
|
|
|
|
|
|
First Quarter |
|
|
|
2023 |
|
|
|
|
|
Commercial Insurance |
|
58.1 |
% |
|
Medicare |
|
22.2 |
% |
|
Capitation |
|
9.8 |
% |
|
Medicaid |
|
2.6 |
% |
|
Workers Compensation/Personal Injury |
3.2 |
% |
|
Other |
|
4.1 |
% |
|
Total |
|
100.0 |
% |
|
|
|
|
|
RADNET
PAYMENTS BY MODALITY |
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
Full Year |
|
Full Year |
|
Full Year |
|
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
MRI |
|
36.4 |
% |
|
36.8 |
% |
|
36.0 |
% |
|
35.4 |
% |
CT |
|
17.2 |
% |
|
17.5 |
% |
|
17.2 |
% |
|
17.6 |
% |
PET/CT |
|
5.8 |
% |
|
5.8 |
% |
|
5.5 |
% |
|
6.0 |
% |
X-ray |
|
6.4 |
% |
|
6.7 |
% |
|
3.9 |
% |
|
7.3 |
% |
Ultrasound |
|
12.8 |
% |
|
12.6 |
% |
|
12.7 |
% |
|
12.3 |
% |
Mammography |
|
16.0 |
% |
|
15.3 |
% |
|
16.1 |
% |
|
15.7 |
% |
Nuclear
Medicine |
|
0.8 |
% |
|
0.9 |
% |
|
1.0 |
% |
|
1.0 |
% |
Other |
|
4.6 |
% |
|
4.5 |
% |
|
4.6 |
% |
|
4.7 |
% |
|
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
PROCEDURES
BY MODALITY* |
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
First Quarter |
|
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
MRI |
|
369,556 |
|
|
316,784 |
|
|
CT |
|
229,379 |
|
|
196,461 |
|
|
PET/CT |
|
14,126 |
|
|
11,683 |
|
|
Nuclear Medicine |
9,258 |
|
|
9,457 |
|
|
Ultrasound |
|
608,986 |
|
|
525,569 |
|
|
Mammography |
455,479 |
|
|
410,807 |
|
|
X-ray and Other |
817,851 |
|
|
726,424 |
|
|
|
|
|
|
|
|
|
|
Total |
|
2,504,635 |
|
|
2,197,185 |
|
|
|
|
|
|
|
|
|
|
* Volumes include wholly 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 |
|
|
|
|
|
March 31, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME ATTRIBUTABLE TO RADNET,
INC. |
|
|
|
|
|
COMMON STOCKHOLDERS |
|
$ |
(21,005 |
) |
|
$ |
3,013 |
|
|
|
|
|
|
|
|
|
|
|
Subtract non-cash change in fair value of interest rate hedges
(i) |
|
4,093 |
|
|
|
(20,819 |
) |
|
|
Legal Settlement |
|
|
- |
|
|
|
2,197 |
|
|
|
Non-operational rent expenses (iii) |
|
|
959 |
|
|
|
938 |
|
|
|
Contingent consideration |
|
|
1,616 |
|
|
|
- |
|
|
|
Holdback Re-valuation Adjustments - Quantib and Heart & Lung
Health |
|
719 |
|
|
|
- |
|
|
|
AI Segment Losses (iv) |
|
|
7,593 |
|
|
|
5,113 |
|
|
|
|
Total adjustments - loss (gain) |
|
|
14,980 |
|
|
|
(12,571 |
) |
|
|
Subtract tax impact of Adjustments (ii) |
|
|
1,293 |
|
|
|
1,980 |
|
|
|
|
Tax effected impact of adjustments |
|
|
16,273 |
|
|
|
(10,591 |
) |
|
|
|
|
|
|
|
|
TOTAL ADJUSTMENT TO NET INCOME (LOSS)
ATTRIBUTABLE |
|
|
|
|
|
TO RADNET, INC. COMMON SHAREHOLDERS |
|
16,273 |
|
|
|
(10,591 |
) |
|
|
|
|
|
|
|
|
ADJUSTED NET LOSS ATTRIBUTABLE TO RADNET,
INC. |
|
(4,732 |
) |
|
|
(7,578 |
) |
|
|
COMMON STOCKHOLDERS |
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
Diluted |
|
|
57,701,439 |
|
|
|
56,362,193 |
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED NET LOSS PER SHARE |
|
|
|
|
|
ATTRIBUTABLE TO RADNET, INC. COMMON
STOCKHOLDERS |
$ |
(0.08 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
(i) Impact from the change in fair value of the hedges during the
quarter. Excludes the 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 15.8% and -8.63% blended federal and state
effective tax rate for the first quarter of 2022 and 2023,
respectively. |
(iii) Represents rent expense associated with de novo sites under
construction prior to them becoming operational. |
(iv) Representents losses before income taxes from Artificial
Intelligence reporting segment. |
|
|
|
|
|
|
|
|
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.
(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.
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