-
Revenue increased 13.9% to a quarterly record of $403.7 million in the 2nd quarter of 2023 from $354.4 million in the 2nd quarter of 2022; Excluding Revenue from our Artificial Intelligence (“AI”) reporting sector, Revenue from the Imaging Centers reporting sector in the 2nd quarter of 2023 was $401.3 million, a boost of 13.8% from in 2015’s 2nd quarter of $352.8 million
-
Excluding losses from our AI reporting sector, Adjusted EBITDA(1) from the Imaging Centers reporting sector was a quarterly record of $63.7 million in the 2nd quarter of 2023 as compared to $55.5 million in the 2nd quarter of 2022, a boost of 14.7%; Adjusted EBITDA(1), consisting of losses from our AI reporting sector, was $60.4 million in the 2nd quarter of 2023 as compared to $51.3 million in the 2nd quarter of 2022, a boost of 17.7%
-
After adjusting for specific uncommon or one-time products affecting the quarter and AI losses, Adjusted Earnings(3) was $14.9 million and watered down Adjusted Earnings Per Share(3) was $0.24 for the 2nd quarter of 2023 compared to Adjusted Earnings(3) of $8.6 million and watered down Adjusted Earnings Per Share(3) of $0.15 for the 2nd quarter of 2022
-
Aggregate procedural volumes increased 11.4% and same-center procedural volumes increased 7.1% compared to the 2nd quarter of 2022
-
On June 16th, RadNet finished its upsized public offering of typical stock, raising $246 countless net earnings; At June 30, 2023, RadNet had a $357 million money balance
-
RadNet increases full-year 2023 assistance levels for Revenue and Adjusted EBITDA(1) from the Imaging Center Segment
LOS ANGELES, Aug. 08, 2023 (WORLD NEWSWIRE) — RadNet, Inc. (NASDAQ: RDNT), a nationwide leader in offering top quality, cost-efficient, fixed-site outpatient diagnostic imaging services through a network of 363 owned and run outpatient imaging centers, today reported monetary outcomes for its 2nd quarter of 2023.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am very pleased with the continued strength of our core imaging center business. In our Imaging Center segment, Revenue increased 13.8% and Adjusted EBITDA(1) increased 14.7% from last year’s second quarter. Our record quarterly Revenue and Adjusted EBITDA(1) were driven by 11.4% aggregate and 7.1% same-center procedural volume growth relative to last year’s second quarter, along with effective expense management. We continue to benefit from the steady growth in the overall industry as well as the accelerating shift from hospital-based procedures to lower-cost, more convenient freestanding centers.”
“As a result of the positive trends we are experiencing in our core business and the strong financial performance of the first and second quarters, we have elected to revise upwards our 2023 full year Imaging Center segment Revenue and Adjusted EBITDA(1) guidance levels in anticipation of financial results that we believe will exceed both our original guidance ranges and those that were revised after our first quarter results,” included Dr. Berger.
Dr. Berger continued, “Our AI segment has begun to demonstrate accelerated growth. Compared with last year’s second quarter, our AI revenue grew 52.8%. Additionally, for the first six months of 2023 compared with last year’s same six-month period, our AI division Revenue grew 109%. We are experiencing increasing enrollment as we roll-out our Enhanced Breast Cancer Detection program and we are encouraged about its future success. While this service offering continues to gain acceptance from our patients and referring physicians, we have spent a considerable amount time and effort in optimizing the educational benefits and pricing to achieve wider adoption and exposure. These efforts purposefully slowed the roll-out by 90-120 days, impacting the implementation and delaying the financial performance of the program.”
“To assist with the growth and commercialization of our digital health businesses, which in addition to our AI initiatives, includes our eRAD radiology informatics businesses, we are pleased to welcome the addition to our management team of Sham Sokka and Sanjog Misra, both with extensive experience in medical software and AI businesses. These senior management additions emphasize our commitment to, and confidence in our digital businesses. We believe these digital health initiatives will have a transformative impact on both RadNet’s AI and Imaging Center businesses, and positions us to be a significant agent of change in our dynamic industry, an industry that is driven by technology and innovation,” said Dr. Berger.
“In response to the heavy volume demands we are experiencing in many of our imaging center regions, we are growing capacity and access through the de novo strategy we embarked on last year. We opened one de novo facility during the second quarter, and anticipate opening five additional centers by year end as well as another six facilities planned in 2024. Our hospital and health system joint venture offerings continue to grow with new system partnerships and through expansion of existing relationships,” concluded Dr. Berger.
Second Quarter Financial Results
For the 2nd quarter of 2023, RadNet reported Revenue from its Imaging Centers reporting sector of $401.3 million and Adjusted EBITDA(1) of $63.7 million, which leave out Revenue and Losses from the AI reporting sector. As compared to in 2015’s 2nd quarter, Revenue increased $48.5 million (or 13.8%) and Adjusted EBITDA(1) increased $8.2 million (or 14.7%). Including our AI reporting sector, Revenue was $403.7 million in the 2nd quarter of 2023, a boost of 13.9% from $354.4 million in in 2015’s 2nd quarter. Including the losses of the AI reporting sector, Adjusted EBITDA(1) was $60.4 million in the 2nd quarter of 2023 and $51.3 million in the 2nd quarter of 2022, a boost of 17.7%.
For the 2nd quarter of 2023, RadNet reported Net Income of $8.4 million as compared to $7.9 million for the 2nd quarter of 2022. Diluted Net Income Per Share for the 2nd quarter of 2023 was $0.12, compared to a Diluted Net Income Per Share of $0.13 in the 2nd quarter of 2022, based upon a weighted typical variety of diluted shares exceptional of 60.9 million shares in 2023 and 57.0 million shares in 2022.
There were a variety of uncommon or one-time products affecting the 2nd quarter consisting of: $4.2 countless non-cash gain from rates of interest swaps; $1.0 million expense associated to the modification in appraisal of contingent factor to consider associated to finished acquisitions; $759,000 expense associated to leases for our de novo centers under building that have yet to open their operations; and $8.7 countless pre-tax losses associated with our AI reporting sector. Adjusting for the above products, Adjusted Earnings(3) from the Imaging Centers reporting sector was $14.9 million and watered down Adjusted Earnings Per Share(3) was $0.24 throughout the 2nd quarter of 2023. This compares to Adjusted Earnings(3) of $8.6 million and watered down Adjusted Earnings Per Share(3) of $0.15 throughout the 2nd quarter of 2022.
Also, impacting Net Income in the 2nd quarter of 2023 were specific non-cash costs and uncommon products consisting of: $4.9 countless non-cash staff member stock payment expense arising from the vesting of specific alternatives and limited stock; $1.9 countless severance paid in connection with headcount decreases associated with cost cost savings efforts; $77,000 loss on the disposal of specific capital equipment; and $748,000 of non-cash amortization of delayed funding expenses and loan discount rates associated with funding costs paid as part of our existing credit centers.
For the 2nd quarter of 2023, as compared to the previous year’s 2nd quarter, MRI volume increased 11.8%, CT volume increased 11.3% and PET/CT volume increased 18.3%. Overall volume, taking into consideration regular imaging tests, inclusive of x-ray, ultrasound, mammography and other tests, increased 11.4% over the previous year’s 2nd quarter. On a same-center basis, consisting of just those centers which belonged to RadNet for both the 2nd quarters of 2023 and 2022, MRI volume increased 7.3%, CT volume increased 6.3% and PET/CT volume increased 18.8%. Overall same-center volume, taking into consideration regular imaging tests, inclusive of x-ray, ultrasound, mammography and other tests, increased 7.1% over the previous year’s exact same quarter.
Six Month Financial Results
For the 6 month duration of 2023, RadNet reported Revenue from its Imaging Centers reporting sector of $789.8 million and Adjusted EBITDA(1) Excluding Losses from the AI reporting sector of $116.4 million. Revenue increased $95.8 million (or 13.8%) and Adjusted EBITDA(1) increased $19.1 million (or 19.7%). Including our AI reporting sector Revenue of $4.5 million, Revenue was $794.3 million in the 6 months of 2023, a boost of 14.1% from $696.1 million in in 2015’s six-month duration. Including the AI reporting sector Adjusted EBITDA(1) losses, Adjusted EBITDA(1) for the 6 month duration of 2023 was $108.6 million as compared to $89.5 million in the exact same 6 month duration of 2022.
For the six-month duration in 2023, RadNet reported Net Loss of $12.6 million, compared to Net Income of $10.9 million in the very first 6 months of 2022. Per share Net Loss for the very first 6 months of 2023 was $(0.21), compared to a watered down Net Income per share of $0.18 in the exact same six-month duration of 2022 (based upon a weighted typical variety of diluted shares exceptional of 59.2 million in 2023 and 56.7 million in 2022).
Affecting Net Income for the 6 month duration of 2023 were specific non-cash costs and non-recurring products consisting of: $17.1 countless non-cash staff member stock payment expense; $16.2 countless pre-tax losses associated with our AI reporting sector; $2.0 countless severance paid in connection with headcount decreases associated with cost cost savings efforts; $1.7 countless non-operational lease expense related to specific un-opened de novo areas: $656,000 loss on the disposal of specific capital equipment; $66,000 of non-cash gain from rates of interest swaps; and $1.5 countless amortization of delayed funding expenses and loan discount rate associated to our existing credit centers.
2023 Guidance Update
RadNet changes its formerly revealed assistance levels as follows:
|
Imaging Center Segment |
|
|||||
|
|
|
|||||
|
Original Guidance Range |
Revised Guidance |
Revised Guidance |
||||
Total Net Revenue |
$1,525 – $1,575 million |
$1,550 – $1,600 million |
$1,575 – $1,610 million |
||||
Adjusted EBITDA(1) |
$220 – $230 million |
$225 – $235 million |
$232 – $242 million |
||||
Capital Expenditures(a) |
$105 – $115 million |
$110 – $120 million |
Unchanged |
||||
Cash Interest Expense(c) |
$35 – $40 million |
$45 – $50 million |
Unchanged |
||||
Free Cash Flow (b)(2) |
$70 – $80 million |
$65 – $70 million |
Unchanged |
||||
|
|||||||
Artificial Intelligence Segment |
|||||||
|
|||||||
|
Original Guidance Range |
Revised Guidance |
Revised Guidance |
||||
Total Net Revenue |
$16 – $18 million |
$16 – $18 million |
$11 – $13 million |
||||
Adjusted EBITDA(1) |
$(9) – $(11) million |
$(9) – $(11) million |
$(11) – $(13) million |
||||
|
|
|
|
(a) Net of earnings from the sale of equipment, imaging centers and joint endeavor interests, and leaves out New Jersey Imaging Network capital investment.
(b) Defined by the Company as Adjusted EBITDA(1) less Capital Expenditures and Cash Paid for Interest.
(c) Excludes payments to counterparties on rates of interest swaps and internet interest earnings from our money balance taped in Other Income.
“We have increased our guidance ranges in our core Imaging Center reporting segment for Revenue and Adjusted EBITDA(1) to reflect the strong financial results in the first half of 2023 as compared with our budget. Additionally, we have lowered our guidance ranges for Revenue and Adjusted EBITDA(1) for the AI Segment to reflect delays resulting from optimizing the implementation of our Enhanced Breast Cancer Detection program.”
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 teleconference to discuss its 2nd quarter 2023 outcomes on Tuesday, August 8th, 2023 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Tuesday, August 8, 2023
Time: 10:30 a.m. Eastern Time
Dial In-Number: 844-826-3035
International Dial-In Number: 412-317-5195
It is advised that individuals call in roughly 5 to 10 minutes prior to the start of the 10:30 a.m. call. There will likewise be synchronised and archived webcasts available at or under the “Investors” menu area and “News Releases” sub-menu of the website. An archived replay of the call will likewise be available and can be accessed by calling 844-512-2921 from the U.S., or 412-317-6671 for global callers, and utilizing the passcode 10181301.
About RadNet, Inc.
RadNet, Inc., is the prominent nationwide service provider of freestanding, fixed-site diagnostic imaging services and associated infotech options (consisting of expert system) in the United States based upon the variety of areas and yearly imaging profits. RadNet has a network of 363 owned and/or run outpatient imaging centers. RadNet’s markets consist of Arizona, California, Delaware, Florida, Maryland, New Jersey and New York. Together with associated radiologists, inclusive of full-time and daily staff members and specialists, RadNet has an overall of roughly 9,000 staff members. For more info, check out .
Forward Looking Statements
This news release includes “forward-looking statements” within the significance of the safe harbor arrangements of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking declarations are expressions of our present beliefs, expectations and presumptions relating to the future of our business, future strategies and methods, forecasts, and awaited future conditions, occasions and patterns. Forward-looking declarations can typically be recognized by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and comparable recommendations to future durations. Forward-looking declarations in this news release consist of, to name a few, declarations we make relating to action to and the anticipated future effects of COVID-19, consisting of declarations about our expected business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing capability to service or re-finance our present insolvency.
Forward-looking declarations are neither historic realities nor guarantees of future efficiency. Because positive declarations associate with the future, they are naturally based on unpredictabilities, dangers and modifications in situations that are hard to anticipate and a lot of which are beyond our control. Our real outcomes and monetary condition might vary materially from those suggested in the positive declarations. Therefore, you must not put excessive dependence on any of these positive declarations. Important elements that might trigger our real outcomes and monetary condition to vary materially from those suggested in the positive declarations consist of, to name a few, the following:
-
the accessibility and regards to capital to money our business;
-
our capability to service our insolvency, make primary and interest payments as those payments end up being due and stay in compliance with appropriate financial obligation covenants, in addition to our capability to re-finance such insolvency on appropriate terms;
-
modifications in basic financial conditions nationally and regionally in the markets in which we run;
-
the accessibility and regards to capital to money the growth of our business and enhancements to our existing centers;
-
our capability to preserve our present credit score and the effect on our financing expenses and competitive position if we do refrain from doing so;
-
our capability to obtain, establish, execute and generate income from innovation, digital health efforts, expert system algorithms and applications;
-
volatility in interest and currency exchange rate, or credit markets;
-
the adequacy of our capital and profits to money our present and future operations;
-
modifications in service mix, profits mix and treatment volumes;
-
hold-ups in getting payments for services offered;
-
increased insolvencies amongst our partner doctors or joint endeavor partners;
-
the effect of the political environment and associated advancements on the present health care market and on our business, consisting of with regard to the future of the Affordable Care Act;
-
the degree to which the continuous execution of health care reform, or modifications in or brand-new legislation, guidelines or assistance, enforcement thereof by federal and state regulators or associated lawsuits lead to a decrease in protection or repayment rates for our services, or other product effects to our business;
-
closures or downturns and modifications in labor expenses and labor problems, consisting of interruptions impacting either our operations or our providers’ capabilities to provide products required in our centers;
-
the event of hostilities, political instability or devastating occasions;
-
the development or reemergence of and impacts associated with future pandemics, upsurges and contagious illness; and
-
noncompliance by us with any personal privacy or security laws or any cybersecurity event or other security breach by us or a 3rd party including the misappropriation, loss or other unapproved usage or disclosure of secret information.
Any positive declaration consisted of in this present report is based upon info presently available to us and speaks just since the date on which it is made. We carry out no responsibility to openly update any positive declaration, whether composed or oral, that we might make from time to time, whether as an outcome of altered situations, brand-new info, future advancements or otherwise, other than as needed by appropriate law.
Regulation G: GAAP and Non-GAAP Financial Information
This release includes specific monetary info not reported in accordance with GAAP. The Company utilizes both GAAP and non-GAAP metrics to determine its monetary outcomes. The Company thinks that, in addition to GAAP metrics, these non-GAAP metrics help the Company in determining its cash-based efficiency. The Company thinks this info works to financiers and other interested celebrations since it eliminates uncommon and nonrecurring charges that happen in the afflicted duration and supplies a basis for determining the Company’s monetary condition versus other quarters. Such info must not be thought about as an alternative for any procedures computed in accordance with GAAP, and might not be equivalent to other likewise entitled procedures of other business. Non-GAAP monetary procedures must not be thought about in seclusion from, or as an alternative for, monetary info prepared in accordance with GAAP. Reconciliation of this info to the most equivalent GAAP procedures is consisted of in this release in the tables which follow.
CONTACTS:
RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
|
|
|||||||
RADNET, INC. AND SUBSIDIARIES |
|
|||||||
CONDENSED COMBINED BALANCE SHEETS |
|
|||||||
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) |
|
|||||||
|
|
|
|
|
||||
|
June 30, 2023 |
|
December 31, 2022 |
|
||||
|
(unaudited) |
|
|
|
||||
PROPERTIES |
|
|
|
|
||||
PRESENT PROPERTIES |
|
|
|
|
||||
Cash and Cash equivalents |
$ |
356,651 |
|
|
$ |
127,834 |
|
|
Accounts receivable |
|
174,481 |
|
|
|
166,357 |
|
|
Due from affiliates |
|
22,240 |
|
|
|
18,971 |
|
|
Prepaid costs and other present properties |
|
49,319 |
|
|
|
54,022 |
|
|
Total present properties |
|
602,691 |
|
|
|
367,184 |
|
|
PROPERTY, EQUIPMENT AND RIGHT-OF-USE PROPERTIES |
|
|
|
|
||||
Property and equipment, web |
|
576,094 |
|
|
|
565,961 |
|
|
Operating lease right-of-use properties |
|
627,130 |
|
|
|
603,524 |
|
|
Total property, plant, equipment and right-of-use properties |
|
1,203,224 |
|
|
|
1,169,485 |
|
|
OTHER ASSETS |
|
|
|
|
||||
Goodwill |
|
687,879 |
|
|
|
677,665 |
|
|
Other intangible properties |
|
100,433 |
|
|
|
106,228 |
|
|
Deferred funding expenses |
|
1,962 |
|
|
|
2,280 |
|
|
Investment in joint endeavors |
|
52,492 |
|
|
|
57,893 |
|
|
Deposits and other |
|
56,609 |
|
|
|
53,172 |
|
|
Total properties |
$ |
2,705,290 |
|
|
$ |
2,433,907 |
|
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
PRESENT LIABILITIES |
|
|
|
|
||||
Accounts payable, accumulated costs and other |
$ |
333,224 |
|
|
$ |
369,595 |
|
|
Due to affiliates |
|
20,463 |
|
|
|
23,100 |
|
|
Deferred profits |
|
5,054 |
|
|
|
4,021 |
|
|
Current running lease liability |
|
59,504 |
|
|
|
57,607 |
|
|
Current part of notes payable |
|
15,989 |
|
|
|
12,400 |
|
|
Total present liabilities |
|
434,234 |
|
|
|
466,723 |
|
|
LONG-LASTING LIABILITIES |
|
|
|
|
||||
Long-term operating lease liability |
|
628,845 |
|
|
|
604,117 |
|
|
Notes payable, web of present part |
|
848,333 |
|
|
|
839,344 |
|
|
Deferred tax liability, web |
|
10,005 |
|
|
|
9,256 |
|
|
Other non-current liabilities |
|
22,869 |
|
|
|
23,015 |
|
|
Total liabilities |
|
1,944,286 |
|
|
|
1,942,455 |
|
|
EQUITY |
|
|
|
|
||||
RadNet, Inc. shareholders’ equity: |
|
|
|
|
||||
Common stock – $.0001 par worth, 200,000,000 shares licensed; 67,669,564 and 57,723,125 shares released and exceptional at June 30, 2023 and December 31, 2022, respectively |
|
7 |
|
|
|
6 |
|
|
Additional paid-in-capital |
|
703,593 |
|
|
|
436,288 |
|
|
Accumulated other detailed loss |
|
(15,183 |
) |
|
|
(20,677 |
) |
|
Accumulated deficit |
|
(95,258 |
) |
|
|
(82,622 |
) |
|
Total RadNet, Inc.’s shareholders equity |
|
593,159 |
|
|
|
332,995 |
|
|
Noncontrolling interests |
|
167,845 |
|
|
|
158,457 |
|
|
Total equity |
|
761,004 |
|
|
|
491,452 |
|
|
Total liabilities and equity |
$ |
2,705,290 |
|
|
$ |
2,433,907 |
|
|
|
|
|
|
|
|
|
|||||||||||||||
RADNET, INC. AND SUBSIDIARIES |
|
|||||||||||||||
CONDENSED CONSOLIDATED DECLARATION OF OPERATIONS |
|
|||||||||||||||
(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA) |
|
|||||||||||||||
(unaudited) |
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS |
|
|
|
|
|
|
|
|
||||||||
Service cost profits |
$ |
363,918 |
|
|
$ |
316,501 |
|
|
$ |
716,338 |
|
|
$ |
619,776 |
|
|
Revenue under capitation plans |
|
39,797 |
|
|
|
37,874 |
|
|
|
77,941 |
|
|
|
76,365 |
|
|
Total service profits |
|
403,715 |
|
|
|
354,375 |
|
|
|
794,279 |
|
|
|
696,141 |
|
|
BUSINESS EXPENSES |
|
|
|
|
|
|
|
|
||||||||
Cost of operations, omitting devaluation and amortization |
|
345,147 |
|
|
|
305,775 |
|
|
|
697,012 |
|
|
|
620,813 |
|
|
Depreciation and amortization |
|
32,180 |
|
|
|
28,862 |
|
|
|
63,495 |
|
|
|
55,980 |
|
|
Loss (gain) on sale and disposal of equipment and other |
|
77 |
|
|
|
81 |
|
|
|
656 |
|
|
|
1,209 |
|
|
Severance expenses |
|
1,870 |
|
|
|
99 |
|
|
|
2,004 |
|
|
|
300 |
|
|
Total operating costs |
|
379,274 |
|
|
|
334,817 |
|
|
|
763,167 |
|
|
|
678,302 |
|
|
EARNINGS (LOSS) FROM OPERATIONS |
|
24,441 |
|
|
|
19,558 |
|
|
|
31,112 |
|
|
|
17,839 |
|
|
OTHER EARNINGS AND EXPENDITURES |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
16,039 |
|
|
|
11,385 |
|
|
|
31,761 |
|
|
|
22,978 |
|
|
Equity in profits of joint endeavors |
|
(1,423 |
) |
|
|
(2,748 |
) |
|
|
(2,851 |
) |
|
|
(5,266 |
) |
|
Non-money modification in reasonable worth of rates of interest hedge |
|
(4,159 |
) |
|
|
(6,306 |
) |
|
|
(66 |
) |
|
|
(27,125 |
) |
|
Other costs (earnings) |
|
40 |
|
|
|
(7 |
) |
|
|
1,472 |
|
|
|
158 |
|
|
Total other expense (earnings) |
|
10,497 |
|
|
|
2,324 |
|
|
|
30,316 |
|
|
|
(9,255 |
) |
|
EARNINGS (LOSS) PRIOR TO EARNINGS TAXES |
|
13,944 |
|
|
|
17,234 |
|
|
|
796 |
|
|
|
27,094 |
|
|
Benefit from (arrangement for) earnings taxes |
|
614 |
|
|
|
(3,403 |
) |
|
|
(521 |
) |
|
|
(4,900 |
) |
|
EARNINGS (LOSS) |
|
14,558 |
|
|
|
13,831 |
|
|
|
275 |
|
|
|
22,194 |
|
|
Net earnings (loss) attributable to noncontrolling interests |
|
6,189 |
|
|
|
5,926 |
|
|
|
12,911 |
|
|
|
11,276 |
|
|
EARNINGS (LOSS) ATTRIBUTABLE TO RADNET, INC. TYPICAL INVESTORS |
$ |
8,369 |
|
|
$ |
7,905 |
|
|
$ |
(12,636 |
) |
|
$ |
10,918 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
BASIC EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. TYPICAL INVESTORS |
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
(0.21 |
) |
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
DILUTED EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. TYPICAL INVESTORS |
$ |
0.12 |
|
|
$ |
0.13 |
|
|
$ |
(0.21 |
) |
|
$ |
0.18 |
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
59,880,803 |
|
|
|
56,059,824 |
|
|
|
59,221,453 |
|
|
|
55,683,335 |
|
|
Diluted |
|
60,916,985 |
|
|
|
56,966,548 |
|
|
|
59,221,453 |
|
|
|
56,666,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
RADNET, INC. AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS |
|||||||
(IN THOUSANDS) |
|||||||
(unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2023 |
|
|
|
2022 |
|
MONEY STREAMS FROM RUNNING ACTIVITIES |
|
|
|
||||
Net earnings |
$ |
275 |
|
|
$ |
22,194 |
|
Adjustments to fix up earnings to net money offered by running activities: |
|
|
|
||||
Depreciation and amortization |
|
63,495 |
|
|
|
55,980 |
|
Amortization of running lease properties |
|
31,601 |
|
|
|
34,055 |
|
Equity in profits of joint endeavors |
|
(2,851 |
) |
|
|
(5,266 |
) |
Distributions from joint endeavors |
|
8,947 |
|
|
|
– |
|
Amortization delayed funding expenses and loan discount rate |
|
1,494 |
|
|
|
1,295 |
|
Loss (Gain) non sale and disposal of equipment |
|
656 |
|
|
|
1,209 |
|
Amortization of capital hedge |
|
1,844 |
|
|
|
1,847 |
|
Non-money modification in reasonable worth of rates of interest hedge |
|
(66 |
) |
|
|
(27,125 |
) |
Stock-based payment |
|
17,055 |
|
|
|
15,795 |
|
Change in reasonable worth of contingent factor to consider |
|
3,098 |
|
|
|
(1,287 |
) |
Changes in running properties and liabilities, web of properties obtained and liabilities presumed in purchase deals: |
|
|
|
||||
Accounts receivable |
|
(8,124 |
) |
|
|
(30,566 |
) |
Other present properties |
|
4,703 |
|
|
|
(709 |
) |
Other properties |
|
(6,590 |
) |
|
|
1,282 |
|
Deferred taxes |
|
(2,249 |
) |
|
|
4,732 |
|
Operating lease liability |
|
(28,582 |
) |
|
|
(32,219 |
) |
Deferred profits |
|
1,033 |
|
|
|
(7,565 |
) |
Accounts payable, accumulated costs and other |
|
14,952 |
|
|
|
32,092 |
|
Net money offered by running activities |
|
100,691 |
|
|
|
65,744 |
|
MONEY STREAMS FROM INVESTING ACTIVITIES |
|
|
|
||||
Purchase of imaging centers and other acquisitions |
|
(10,315 |
) |
|
|
(26,009 |
) |
Purchase of property and equipment and other |
|
(95,380 |
) |
|
|
(72,659 |
) |
Proceeds from sale of equipment |
|
73 |
|
|
|
4,121 |
|
Equity contributions in existing and purchase of interest in joint endeavors |
|
(288 |
) |
|
|
(1,441 |
) |
Net money utilized in investing activities |
|
(105,910 |
) |
|
|
(95,988 |
) |
MONEY STREAMS FROM FUNDING ACTIVITIES |
|
|
|
||||
Principal payments on notes and leases payable |
|
(1,051 |
) |
|
|
– |
|
Payments on Term Loan Debt |
|
(7,376 |
) |
|
|
(6,625 |
) |
Distributions paid to noncontrolling interests |
|
(3,523 |
) |
|
|
– |
|
Proceeds from issuance of typical stock |
|
246,201 |
|
|
|
– |
|
Proceeds from issuance of typical stock upon workout of alternatives |
|
51 |
|
|
|
– |
|
Net money utilized in funding activities |
|
234,302 |
|
|
|
(6,625 |
) |
IMPACT OF CURRENCY EXCHANGE RATE ALTERS ON MONEY |
|
(266 |
) |
|
|
1,433 |
|
INTERNET BOOST (DECLINE) IN MONEY AND MONEY EQUIVALENTS |
|
228,817 |
|
|
|
(35,436 |
) |
MONEY AND MONEY EQUIVALENTS, start of duration |
|
127,834 |
|
|
|
134,606 |
|
MONEY AND MONEY EQUIVALENTS, end of duration |
$ |
356,651 |
|
|
$ |
99,170 |
|
|
|
|
|
||||
ADDITIONAL DISCLOSURE OF CAPITAL DETAILS |
|
|
|
||||
Cash paid throughout the duration for interest |
$ |
39,301 |
|
|
$ |
19,687 |
|
Cash paid throughout the duration for earnings taxes |
$ |
201 |
|
|
$ |
126 |
|
Cash received (paid) throughout the duration from capital hedge |
$ |
6,715 |
|
|
$ |
(4,248 |
) |
Cash Interest Received on our Cash Balance |
$ |
2,681 |
|
|
$ |
– |
|
|
|
|
|
|
|
|||||||||||||||
RADNET, INC. AND SUBSIDIARIES |
|
|||||||||||||||
RECONCILIATION OF GAAP EARNINGS ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA |
|
|||||||||||||||
(IN THOUSANDS) |
|
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) attributable to Radnet, Inc. typical shareholders |
$ |
8,369 |
|
|
$ |
7,905 |
|
|
$ |
(12,636 |
) |
|
$ |
10,918 |
|
|
Income taxes |
|
(614 |
) |
|
|
3,403 |
|
|
|
521 |
|
|
|
4,900 |
|
|
Interest expense |
|
16,039 |
|
|
|
11,385 |
|
|
|
31,761 |
|
|
|
22,978 |
|
|
Severance expenses |
|
1,870 |
|
|
|
99 |
|
|
|
2,004 |
|
|
|
300 |
|
|
Depreciation and amortization |
|
32,180 |
|
|
|
28,862 |
|
|
|
63,495 |
|
|
|
55,980 |
|
|
Non-money staff member stock-based payment |
|
4,870 |
|
|
|
4,693 |
|
|
|
17,056 |
|
|
|
15,795 |
|
|
Loss (gain) on sale and disposal of equipment and other |
|
77 |
|
|
|
81 |
|
|
|
656 |
|
|
|
1,209 |
|
|
Non-money modification in reasonable worth of rates of interest hedge |
|
(4,159 |
) |
|
|
(6,306 |
) |
|
|
(66 |
) |
|
|
(27,125 |
) |
|
Other costs |
|
40 |
|
|
|
(7 |
) |
|
|
1,472 |
|
|
|
158 |
|
|
Legal settlements |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
2,197 |
|
|
Contingent Consideration |
|
1,014 |
|
|
|
– |
|
|
|
2,630 |
|
|
|
– |
|
|
Non-functional lease costs |
|
759 |
|
|
|
1,222 |
|
|
|
1,718 |
|
|
|
2,160 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA Including Losses from AI Segment |
$ |
60,445 |
|
|
$ |
51,337 |
|
|
$ |
108,611 |
|
|
$ |
89,470 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Losses from AI Segment |
|
3,285 |
|
|
|
4,207 |
|
|
|
7,779 |
|
|
|
7,792 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA omitting Losses from AI Segment |
$ |
63,730 |
|
|
$ |
55,544 |
|
|
$ |
116,390 |
|
|
$ |
97,262 |
|
|
|
|
|
|
|
|
|
|
|
PAYOR CLASS BREAKDOWN |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Insurance |
|
58.3 |
% |
|
|
|
|
|
|
Medicare |
|
22.2 |
% |
|
|
|
|
|
|
Capitation |
|
9.9 |
% |
|
|
|
|
|
|
Medicaid |
|
2.5 |
% |
|
|
|
|
|
|
Workers Compensation/Personal Injury |
3.2 |
% |
|
|
|
|
|
|
|
Other |
|
4.1 |
% |
|
|
|
|
|
|
Total |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
RADNET PAYMENTS BY TECHNIQUE |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
Second Quarter |
|
|
Full Year |
|
Full Year |
|
Full Year |
|
|||
|
|
2023 |
|
|
2022 |
|
2021 |
|
2020 |
|
|||
|
|
|
|
|
|
|
|
|
|
||||
MRI |
|
36.7 |
% |
|
36.8 |
% |
|
36.0 |
% |
|
35.4 |
% |
|
CT |
|
16.9 |
% |
|
17.5 |
% |
|
17.2 |
% |
|
17.6 |
% |
|
PET/CT |
|
6.4 |
% |
|
5.8 |
% |
|
5.5 |
% |
|
6.0 |
% |
|
X-ray |
|
6.6 |
% |
|
6.7 |
% |
|
3.9 |
% |
|
7.3 |
% |
|
Ultrasound |
|
13.0 |
% |
|
12.6 |
% |
|
12.7 |
% |
|
12.3 |
% |
|
Mammography |
|
15.6 |
% |
|
15.3 |
% |
|
16.1 |
% |
|
15.7 |
% |
|
Nuclear Medicine |
|
0.8 |
% |
|
0.9 |
% |
|
1.0 |
% |
|
1.0 |
% |
|
Other |
|
4.0 |
% |
|
4.5 |
% |
|
4.6 |
% |
|
4.7 |
% |
|
|
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
TREATMENTS BY TECHNIQUE* |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter |
|
|
|
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
MRI |
|
387,619 |
|
346,598 |
|
|
|
CT |
|
|
235,138 |
|
211,221 |
|
|
PET/CT |
|
15,036 |
|
12,710 |
|
|
|
Nuclear Medicine |
9,463 |
|
9,857 |
|
|
||
Ultrasound |
|
620,660 |
|
552,941 |
|
|
|
Mammography |
450,747 |
|
393,515 |
|
|
||
X-ray and Other |
832,719 |
|
763,334 |
|
|
||
|
|
|
|
|
|
|
|
|
Total |
|
2,551,382 |
|
2,290,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Volumes consist of entirely owned and joint endeavor 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, |
||||||
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME ATTRIBUTABLE TO RADNET, INC. |
|
|
|
|||||||||||
|
COMMON STOCKHOLDERS |
|
|
$ |
8,369 |
|
|
$ |
7,905 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Subtract non-cash change in fair value of interest rate swaps (i) |
|
(4,159 |
) |
|
|
(6,306 |
) |
||||||
|
Non-operational rent expenses (iii) |
|
|
|
759 |
|
|
|
1,222 |
|
||||
|
Contingent Consideration |
|
|
|
1,014 |
|
|
|
– |
|
||||
|
AI Segment Losses (iv) |
|
|
|
|
8,655 |
|
|
|
5,892 |
|
|||
|
|
Total adjustments – loss (gain) |
|
|
|
6,269 |
|
|
|
808 |
|
|||
|
Subtract tax impact of Adjustments (ii) |
|
|
|
276 |
|
|
|
(160 |
) |
||||
|
|
Tax effected impact of adjustments |
|
|
|
6,545 |
|
|
|
648 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||
TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE |
|
|
|
|||||||||||
|
TO RADNET, INC. COMMON SHAREHOLDERS |
|
6,545 |
|
|
|
648 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||
ADJUSTED NET INCOME ATTRIBUTABLE TO RADNET, INC. |
|
14,914 |
|
|
|
8,553 |
|
|||||||
|
COMMON STOCKHOLDERS |
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|||||||||||
|
Diluted |
|
|
|
|
|
60,916,985 |
|
|
|
56,966,548 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
ADJUSTED DILUTED NET INCOME PER SHARE |
|
|
|
|||||||||||
|
ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS |
$ |
0.24 |
|
|
$ |
0.15 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||
(i) Impact from the change in fair value of the swaps 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 (4.40)% and 19.75% blended federal and state effective tax rate for the second quarter of 2023 and 2022, respectively. |
||||||||||||||
(iii) Represents rent expense associated with de novo sites under construction prior to them becoming operational. |
|
|||||||||||||
(iv) Represents 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 shareholders and excludes losses or gains on the disposal of equipment, loss on debt extinguishments, bargain purchase gains, severance expenses, 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, money 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 equivalent to other likewise entitled procedures of other business.