RadNet Reports Fourth Quarter 2024 Results, Including Record Revenue and Adjusted EBITDA(1) and Releases 2025 Financial Guidance
RadNet (NASDAQ: RDNT) reported strong Q4 2024 financial results with record-breaking performance. Total revenue increased 13.5% to $477.1 million, while Adjusted EBITDA grew 14.0% to $75.0 million compared to Q4 2023. The Digital Health segment showed impressive growth with revenue up 28.1% to $18.9 million.
Key operational highlights include:
- 8.0% increase in aggregate procedural volumes
- 4.0% growth in same-center procedural volumes
- Strong imaging volume growth: MRI +13.4%, CT +13.9%, PET/CT +23.9%
- Expansion to 398 imaging centers, with 38.4% being joint venture facilities
The company maintained a strong financial position with $740 million cash balance and net debt to Adjusted EBITDA ratio under 1.0x. Adjusted Earnings Per Share reached $0.22 in Q4 2024, up from $0.15 in Q4 2023.
RadNet (NASDAQ: RDNT) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con performance da record. I ricavi totali sono aumentati del 13,5% a $477,1 milioni, mentre l'EBITDA rettificato è cresciuto del 14,0% a $75,0 milioni rispetto al quarto trimestre del 2023. Il segmento della Salute Digitale ha mostrato una crescita impressionante, con ricavi in aumento del 28,1% a $18,9 milioni.
I principali punti operativi includono:
- Aumento dell'8,0% nei volumi procedurali aggregati
- Crescita del 4,0% nei volumi procedurali dello stesso centro
- Forte crescita dei volumi di imaging: MRI +13,4%, CT +13,9%, PET/CT +23,9%
- Espansione a 398 centri di imaging, con il 38,4% che sono strutture in joint venture
L'azienda ha mantenuto una solida posizione finanziaria con un saldo di cassa di $740 milioni e un rapporto debito netto su EBITDA rettificato inferiore a 1,0x. L'utile per azione rettificato ha raggiunto $0,22 nel quarto trimestre del 2024, in aumento rispetto a $0,15 nel quarto trimestre del 2023.
RadNet (NASDAQ: RDNT) informó resultados financieros sólidos para el cuarto trimestre de 2024, con un rendimiento récord. Los ingresos totales aumentaron un 13.5% a $477.1 millones, mientras que el EBITDA ajustado creció un 14.0% a $75.0 millones en comparación con el cuarto trimestre de 2023. El segmento de Salud Digital mostró un crecimiento impresionante, con ingresos que aumentaron un 28.1% a $18.9 millones.
Los puntos operativos clave incluyen:
- Aumento del 8.0% en los volúmenes de procedimientos agregados
- Crecimiento del 4.0% en los volúmenes de procedimientos del mismo centro
- Fuerte crecimiento en los volúmenes de imagen: MRI +13.4%, CT +13.9%, PET/CT +23.9%
- Expansión a 398 centros de imagen, con un 38.4% siendo instalaciones de empresa conjunta
La compañía mantuvo una sólida posición financiera con un saldo de efectivo de $740 millones y una relación de deuda neta a EBITDA ajustado inferior a 1.0x. Las ganancias por acción ajustadas alcanzaron $0.22 en el cuarto trimestre de 2024, en comparación con $0.15 en el cuarto trimestre de 2023.
RadNet (NASDAQ: RDNT)는 2024년 4분기 재무 결과를 발표하며 기록적인 성과를 보였습니다. 총 수익은 13.5% 증가하여 4억 7,710만 달러에 달했으며, 조정된 EBITDA는 14.0% 성장하여 7,500만 달러에 도달했습니다. 디지털 헬스 부문은 수익이 28.1% 증가하여 1,890만 달러라는 인상적인 성장을 보였습니다.
주요 운영 하이라이트는 다음과 같습니다:
- 총 절차량 8.0% 증가
- 동일 센터 절차량 4.0% 성장
- 강력한 이미징 볼륨 성장: MRI +13.4%, CT +13.9%, PET/CT +23.9%
- 398개의 이미징 센터로 확장, 그 중 38.4%는 합작 투자 시설
회사는 7억 4천만 달러의 현금 잔고와 조정된 EBITDA 대비 순부채 비율이 1.0배 미만으로 강력한 재무 상태를 유지했습니다. 조정된 주당순이익은 2024년 4분기에 $0.22에 도달했으며, 이는 2023년 4분기의 $0.15에서 증가한 수치입니다.
RadNet (NASDAQ: RDNT) a annoncé de solides résultats financiers pour le quatrième trimestre 2024, avec des performances record. Le chiffre d'affaires total a augmenté de 13,5 % pour atteindre 477,1 millions de dollars, tandis que l'EBITDA ajusté a crû de 14,0 % pour atteindre 75,0 millions de dollars par rapport au quatrième trimestre 2023. Le segment de la Santé Numérique a montré une croissance impressionnante avec des revenus en hausse de 28,1 % à 18,9 millions de dollars.
Les points forts opérationnels comprennent:
- Augmentation de 8,0 % des volumes de procédures agrégés
- Croissance de 4,0 % des volumes de procédures dans le même centre
- Forte croissance des volumes d'imagerie : IRM +13,4 %, CT +13,9 %, PET/CT +23,9 %
- Expansion à 398 centres d'imagerie, dont 38,4 % sont des installations en coentreprise
L'entreprise a maintenu une position financière solide avec un solde de trésorerie de 740 millions de dollars et un ratio de dette nette par rapport à l'EBITDA ajusté inférieur à 1,0x. Le bénéfice par action ajusté a atteint 0,22 $ au quatrième trimestre 2024, contre 0,15 $ au quatrième trimestre 2023.
RadNet (NASDAQ: RDNT) hat für das vierte Quartal 2024 starke Finanzzahlen mit rekordverdächtiger Leistung gemeldet. Der Gesamtumsatz stieg um 13,5% auf 477,1 Millionen Dollar, während das bereinigte EBITDA um 14,0% auf 75,0 Millionen Dollar im Vergleich zum vierten Quartal 2023 wuchs. Der Bereich Digitale Gesundheit zeigte ein beeindruckendes Wachstum mit einem Umsatzanstieg von 28,1% auf 18,9 Millionen Dollar.
Wichtige betriebliche Höhepunkte umfassen:
- 8,0% Anstieg des aggregierten Verfahrensvolumens
- 4,0% Wachstum des Verfahrensvolumens im gleichen Zentrum
- Starkes Wachstum des Bildvolumens: MRT +13,4%, CT +13,9%, PET/CT +23,9%
- Erweiterung auf 398 Bildgebungszentren, wobei 38,4% Gemeinschaftsunternehmen sind
Das Unternehmen hielt eine starke finanzielle Position mit einem Bargeldbestand von 740 Millionen Dollar und einem Verhältnis von Nettoverschuldung zu bereinigtem EBITDA von unter 1,0x. Der bereinigte Gewinn pro Aktie erreichte im vierten Quartal 2024 0,22 Dollar, ein Anstieg von 0,15 Dollar im vierten Quartal 2023.
- Record quarterly revenue of $477.1M, up 13.5% YoY
- Digital Health segment revenue up 28.1% to $18.9M
- Strong imaging volume growth across all modalities
- Cash balance increased to $740M from $342M YoY
- Net debt to Adjusted EBITDA ratio improved to under 1.0x
- Adjusted EPS increased to $0.22 from $0.15 YoY
- Weather conditions and fires impacting Q1 2025 outlook with estimated $22M revenue loss
- Continued pressure from rising labor costs
- $1.1M severance expenses from cost-saving initiatives
- $2.5M impairment loss on lease abandonment
Insights
RadNet delivered record financial performance in Q4 2024, with
The company's growth was fueled by robust procedural volume increases, with high-value diagnostic services showing particularly strong momentum: MRI volumes up
RadNet's Digital Health segment delivered standout performance with revenue growing
The company significantly strengthened its financial position in 2024, reducing its net debt to Adjusted EBITDA ratio to below 1.0x (from 2.0x at end-2023) while building a substantial cash reserve of
RadNet's joint venture strategy continues to gain momentum, with health system partnerships increasing from 130 to 153 centers during 2024. These partnerships now represent
Looking ahead to 2025, RadNet's guidance (
RadNet's Digital Health segment is emerging as a significant growth driver and strategic differentiator, with Q4 revenue increasing
The Q4 launch of DeepHealth OS represents a comprehensive operating system for radiology practices, designed to integrate workflow management with AI-assisted diagnosis. This platform addresses the industry's critical radiologist shortage by automating routine tasks and prioritizing cases based on AI-detected findings, potentially increasing radiologist productivity by
The SmartMammo solution specifically targets mammography workflow efficiency by using AI to pre-analyze breast images, flag potential abnormalities, and reduce reading time. This addresses a critical bottleneck in breast imaging centers where radiologist capacity constraints often limit patient throughput.
Perhaps most innovative is RadNet's TechLive technology, which enables remote technologist supervision and control of imaging equipment. This solution directly addresses the severe technologist shortage by allowing a single technologist to simultaneously support multiple imaging locations, potentially transforming the operational economics of imaging centers in underserved areas.
RadNet's
The company's 2025 strategy of building dedicated sales, marketing, and implementation teams for Digital Health solutions signals a transformation from being solely an imaging center operator to becoming a healthcare technology provider. This dual-business model creates significant synergies - RadNet's imaging network serves as both a development environment and reference customer for their technology solutions, while the technology enhances operational efficiency within their imaging centers.
- Total Company Revenue increased
13.5% to a quarterly record of$477.1 million in the fourth quarter of 2024 from$420.4 million in the fourth quarter of 2023; Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased28.1% to$18.9 million in the fourth quarter of 2024 from$14.7 million in the fourth quarter of 2023 - Total Company Adjusted EBITDA(1) was a quarterly record of
$75.0 million in the fourth quarter of 2024 as compared with$65.8 million in the fourth quarter of 2023, an increase of14.0% ; Digital Health reportable segment Adjusted EBITDA(1) increased61.6% to$4.5 million in the fourth quarter of 2024 from$2.8 million in the fourth quarter of 2023 - Adjusting for unusual or one-time items impacting Net Income in the quarter, Adjusted Earnings Per Share(3) was
$0.22 for the fourth quarter of 2024; This compares with Adjusted Earnings Per Share(3) of$0.15 for the fourth quarter of 2023 - In the fourth quarter of 2024, aggregate procedural volumes increased
8.0% and same-center procedural volumes increased4.0% compared with the fourth quarter of 2023 - At December 31, 2024, RadNet had a cash balance of
$740 million and a net debt to Adjusted EBITDA(1) leverage ratio of under 1.0x
LOS ANGELES, Feb. 27, 2025 (GLOBE NEWSWIRE) -- 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/or operated outpatient imaging centers, today reported financial results for its fourth quarter and full-year ended December 31, 2024.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am very pleased with our performance in the fourth quarter and for full-year 2024. Relative to last year’s fourth quarter, Revenue increased
Dr. Berger continued, “During the fourth quarter, we continued to experience increased demand in virtually all of our markets. This demand was the primary catalyst for the investments made to expand capacity by the opening of nine new centers during the year. Throughout 2024, the centers within health system partnerships grew from 130 at the beginning of 2024 to 153 by the end of the year. Joint venture facilities now represent
“During 2024, significant progress was made in the Digital Health division, culminating with the fourth quarter launch of DeepHealth OS, SmartMammoTM and TechLiveTM solutions in addition to expansion of the AI clinical tools in breast, lung, prostate and brain. We intend to implement these new solutions throughout the RadNet network during 2025, and they should create significant efficiencies in our operations that will help address challenges resulting from the shortage and rising cost of skilled labor. Furthermore, these solutions will enable us to expand capacity by streamlining workflow and automating processes that will improve the patient experience,” added Dr. Berger.
“During 2024, liquidity and financial leverage were carefully managed, as highlighted by a
Financial Results
Fourth Quarter Report:
For the fourth quarter of 2024, RadNet reported Total Company Revenue of
For the fourth quarter of 2024, RadNet reported Digital Health Revenue of
There were a number of unusual or one-time items impacting the fourth quarter including:
Unadjusted for unusual or one-time items impacting the fourth quarter, Total Company Net Income for the fourth quarter of 2024 was
For the fourth quarter of 2024, as compared with the prior year’s fourth quarter, MRI volume increased
Annual Report:
For full-year 2024, RadNet reported Total Company Revenue of
For full-year 2024, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of
Unadjusted for one-time or unusual items, Total Company Net Income for 2024 was
Actual 2024 Results vs. 2024 Guidance
| Imaging Center Segment | ||||||||||
| Original Guidance Range | Revised Guidance Range After Q1 Results | Revised Guidance Range After Q2 Results | Revised Guidance Range After Q3 Results | Actual 2024 Results | ||||||
| Total Net Revenue | ||||||||||
| Adjusted EBITDA(1) | ||||||||||
| Capital Expenditures(a) | ||||||||||
| Cash Interest Expense(b) | ||||||||||
| Free Cash Flow (2) | ||||||||||
| (a) Net of proceeds from the sale of equipment ( (b) Includes payments to and from counterparties on interest rate swaps and nets interest income from our cash balance as recorded in Other Income. | ||||||||||
| Digital Health Segment | |||||
| Original Guidance Range | Revised Guidance Range After Q1 and Q2 Results | Revised Guidance Range After Q3 Results | Actual 2024 Results | ||
| Total Net Revenue (inclusive of intersegment revenue) | |||||
| Adjusted EBITDA(1) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||||
| Capital Expenditures(i) | |||||
| Free Cash Flow(2) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||||
| Free Cash Flow(2) After Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||||
| (i) Excludes a | |||||
2025 Guidance
Dr. Berger highlighted, “In January and February of 2025, we experienced more severe winter weather conditions than last year in our East Coast and Texas operations as well as catastrophic fires in Southern California. These unanticipated events had a significant impact on the utilization of healthcare services in these regions, which resulted in an estimated loss of
RadNet reports 2025 guidance ranges as follows:
| Imaging Center Segment | ||
| 2025 Guidance Range | ||
| Total Net Revenue | ||
| Adjusted EBITDA(1) | ||
| Capital Expenditures(a) | ||
| Cash Interest Expense(c) | ||
| Free Cash Flow(b) | ||
| (c) Net of proceeds from the sale of equipment and New Jersey Imaging Network capital expenditures. (d) Defined by the Company as Adjusted EBITDA(1) less Capital Expenditures and Cash Interest Expense. (e) Net of payments from counterparties on interest rate swaps and interest income from our cash balance recorded in Other Income. | ||
| Digital Health Segment | ||
| 2025 Guidance Range | ||
| Total Net Revenue | ||
| Adjusted EBITDA(1) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | ||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | ||
| Capital Expenditures | ||
| Free Cash Flow(a) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | ||
| Free Cash Flow(a) After Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | ||
| (a) Defined by the Company as Adjusted EBITDA(1) less Capital Expenditures and Cash Interest Expense. | ||
Dr Berger added, “Within the Imaging Center segment, 2025 performance will be impacted by continued focus on same-center performance, tuck-in acquisitions, increasing reimbursement efforts, expanded and new health system joint ventures and de novo center openings. Incorporated into 2025 guidance is continued increases in salaries, wages and benefits, which is indicative of broader industry conditions. To address the labor challenges, we will be focused in 2025 on the implementation of the Digital Health solutions intended to drive automation and efficiencies in the utilization of labor.”
“Within the Digital Health segment, 2025 growth will be driven by a variety of factors including, sales of the new DeepHealth OS Operating and Diagnostic software suites, sales and licensing revenue from the new SmartTechologyTM products (eg, SmartMammoTM), licensing fees from the TechLiveTM technologist remote-control and automation technology and further licensing and patient revenue from mammography, lung, prostate and brain AI solutions. In 2025, significant infrastructure investments will be made in building sales, marketing and implementation teams and we will pursue completing potential acquisitions, both of which will contribute to the long-term success in selling and licensing Digital Health solutions to external customers”, concluded Dr. Berger.
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 tomorrow, February 28th, at 10:30 a.m. Eastern Time. During the call, management will discuss the Company's 2024 fourth quarter and year-end results.
Conference Call Details:
Date: Friday, February 28, 2025
Time: 10:30 a.m. ET
Dial In-Number: 844-826-3035
International Dial-In Number: 412-317-5195
There will also be simultaneous and archived webcasts available at https://viavid.webcasts.com/starthere.jsp?ei=1708732&tp_key=80b765a1d9 or http://www.radnet.com under the “About RadNet” menu section and “News & Press 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 10197109.
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, and inclusive of full-time and per diem employees and technologists, RadNet has a total of over 11,000 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:
- changes in general economic conditions nationally and regionally in the markets in which we operate, including their effects on the cost and availability of labor;
- 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;
- 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;
- 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, 310-445-2800
Executive Vice President and Chief Financial Officer
| RADNET, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and Cash equivalents | $ | 740,020 | $ | 342,570 | |||
| Accounts receivable | 185,821 | 163,707 | |||||
| Due from affiliates | 41,869 | 25,342 | |||||
| Prepaid expenses and other current assets | 51,542 | 47,657 | |||||
| Total current assets | 1,019,252 | 579,276 | |||||
| PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS | |||||||
| Property and equipment, net | 694,791 | 604,401 | |||||
| Operating lease right-of-use assets | 639,740 | 596,032 | |||||
| Total property, plant, equipment and right-of-use assets | 1,334,531 | 1,200,433 | |||||
| OTHER ASSETS | |||||||
| Goodwill | 710,663 | 679,463 | |||||
| Other intangible assets | 81,351 | 90,615 | |||||
| Deferred financing costs | 2,265 | 1,643 | |||||
| Investment in joint ventures | 104,057 | 92,710 | |||||
| Deposits and other | 34,571 | 46,333 | |||||
| Total Assets | $ | 3,286,690 | $ | 2,690,473 | |||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable, accrued expenses and other | $ | 351,464 | $ | 342,940 | |||
| Due to affiliates | 43,650 | 15,910 | |||||
| Deferred revenue | 3,288 | 4,647 | |||||
| Current operating lease liability | 56,618 | 55,981 | |||||
| Current portion of notes payable | 24,692 | 17,974 | |||||
| Total current liabilities | 479,712 | 437,452 | |||||
| LONG-TERM LIABILITIES | |||||||
| Long-term operating lease liability | 655,979 | 605,097 | |||||
| Notes payable, net of current portion | 991,574 | 812,068 | |||||
| Deferred tax liability, net | 22,230 | 15,776 | |||||
| Other non-current liabilities | 3,785 | 6,721 | |||||
| Total liabilities | 2,153,280 | 1,877,114 | |||||
| EQUITY | |||||||
| RadNet, Inc. stockholders' equity: | |||||||
| Common stock - | 7 | 7 | |||||
| Additional paid-in-capital | 988,147 | 722,750 | |||||
| Accumulated other comprehensive loss | (9,061 | ) | (12,484 | ) | |||
| Accumulated deficit | (76,785 | ) | (79,578 | ) | |||
| Total RadNet, Inc.'s Stockholders' equity: | 902,308 | 630,695 | |||||
| Noncontrolling interests | 231,102 | 182,664 | |||||
| Total Equity | 1,133,410 | 813,359 | |||||
| Total liabilities and equity | $ | 3,286,690 | $ | 2,690,473 | |||
| RADNET, INC. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||
| (IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA) | |||||||||||
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| REVENUE | |||||||||||
| Service fee revenue | $ | 1,693,089 | $ | 1,463,197 | $ | 1,278,016 | |||||
| Revenue under capitation arrangements | 136,575 | 153,433 | 152,045 | ||||||||
| Total service revenue | 1,829,664 | 1,616,630 | 1,430,061 | ||||||||
| OPERATING EXPENSES | |||||||||||
| Cost of operations, excluding depreciation and amortization | 1,580,549 | 1,395,239 | 1,264,346 | ||||||||
| Lease abandonment charges | 2,478 | 5,146 | - | ||||||||
| Depreciation and amortization | 137,838 | 128,391 | 115,877 | ||||||||
| Loss (gain) on sale and disposal of equipment and other | 2,276 | 2,187 | 2,529 | ||||||||
| Loss (gain) on contribution of imaging centers into joint venture | - | (16,808 | ) | - | |||||||
| Severance costs | 1,902 | 3,778 | 946 | ||||||||
| Total operating expenses | 1,725,043 | 1,517,933 | 1,383,698 | ||||||||
| INCOME (LOSS) FROM OPERATIONS | 104,621 | 98,697 | 46,363 | ||||||||
| OTHER INCOME AND EXPENSES | |||||||||||
| Interest expense | 79,849 | 64,483 | 50,841 | ||||||||
| Equity in earnings of joint ventures | (14,472 | ) | (6,427 | ) | (10,390 | ) | |||||
| Non-cash change in fair value of interest rate hedge | 8,006 | 8,185 | (39,621 | ) | |||||||
| Debt restructuring and extinguishment expenses | 11,292 | - | 731 | ||||||||
| Other expenses (income) | (24,916 | ) | (6,354 | ) | 1,833 | ||||||
| Total other (income) expenses | 59,759 | 59,887 | 3,394 | ||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 44,862 | 38,810 | 42,969 | ||||||||
| Provision for income taxes | (6,026 | ) | (8,473 | ) | (9,361 | ) | |||||
| NET INCOME (LOSS) | 38,836 | 30,337 | 33,608 | ||||||||
| Net income (loss) attributable to noncontrolling interests | 36,043 | 27,293 | 22,958 | ||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 2,793 | $ | 3,044 | $ | 10,650 | |||||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.04 | $ | 0.05 | $ | 0.19 | |||||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.04 | $ | 0.05 | $ | 0.17 | |||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||
| Basic | 73,037,237 | 63,580,059 | 56,293,336 | ||||||||
| Diluted | 74,762,332 | 64,658,299 | 57,320,870 | ||||||||
| RADNET, INC. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS | |||||||||||
| (IN THOUSANDS) | |||||||||||
| (unaudited) | |||||||||||
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net income (loss) | $ | 38,836 | $ | 30,337 | $ | 33,608 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 137,838 | 128,391 | 115,877 | ||||||||
| Amortization of operating lease assets | 60,552 | 61,102 | 68,847 | ||||||||
| Equity in earnings of joint ventures, net of dividend | (9,926 | ) | 9,176 | (5,952 | ) | ||||||
| Amortization deferred financing costs and loan discount | 3,093 | 2,987 | 2,693 | ||||||||
| Loss on sale and disposal of equipment | 2,276 | 2,187 | 2,529 | ||||||||
| Loss on extinguishment of debt | 3,903 | - | - | ||||||||
| Gain on contribution of imaging centers into joint venture | - | (16,808 | ) | - | |||||||
| Lease abandonment charges | 2,478 | 5,146 | - | ||||||||
| Amortization of cash flow hedge | 9,352 | 3,576 | 3,687 | ||||||||
| Non-cash change in fair value of interest rate hedge | 8,006 | 8,185 | (39,621 | ) | |||||||
| Stock-based compensation | 29,833 | 26,785 | 23,770 | ||||||||
| Loss on impairment | 1,275 | 3,949 | - | ||||||||
| Change in fair value of contingent consideration | 1,995 | (3,880 | ) | (325 | ) | ||||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | |||||||||||
| Accounts receivable | (21,767 | ) | 2,650 | (30,078 | ) | ||||||
| Other current assets | (32,790 | ) | (8,441 | ) | (3,327 | ) | |||||
| Other assets | 10,723 | (1,484 | ) | (12,166 | ) | ||||||
| Deferred taxes | 6,454 | 6,056 | 13,356 | ||||||||
| Operating lease liability | (54,866 | ) | (54,763 | ) | (68,943 | ) | |||||
| Deferred revenue | (1,359 | ) | 626 | (7,316 | ) | ||||||
| Accounts payable, accrued expenses and other | 37,117 | 15,086 | 49,778 | ||||||||
| Net cash provided by operating activities | 233,023 | 220,863 | 146,417 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Purchase of imaging facilities and other acquisitions | (43,661 | ) | (10,918 | ) | (129,961 | ) | |||||
| Purchase of property and equipment | (188,070 | ) | (176,600 | ) | (119,451 | ) | |||||
| Proceeds from sale of equipment | 157 | 83 | 3,904 | ||||||||
| Equity contributions in existing and purchase of interest in joint ventures | (1,496 | ) | (14,035 | ) | (1,441 | ) | |||||
| Net cash used in investing activities | (233,070 | ) | (201,470 | ) | (246,949 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Principal payments on notes and leases payable | (5,989 | ) | (2,930 | ) | - | ||||||
| Payments on Term Loan Debt | (692,437 | ) | (41,063 | ) | (53,750 | ) | |||||
| Proceeds from issuance of new debt, net of issuance costs | 863,757 | - | 147,996 | ||||||||
| Sale of noncontrolling interests | 22,357 | 5,121 | - | ||||||||
| Payments on contingent consideration and holdbacks | (4,268 | ) | (5,495 | ) | - | ||||||
| Distributions paid to noncontrolling interests | (4,522 | ) | (5,972 | ) | (893 | ) | |||||
| Proceeds from issuance of common stock | 218,385 | 245,832 | - | ||||||||
| Proceeds from issuance of common stock upon exercise of options | 667 | 142 | 294 | ||||||||
| Net cash provided by financing activities | 397,950 | 195,635 | 93,647 | ||||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (453 | ) | (292 | ) | 113 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 397,450 | 214,736 | (6,772 | ) | |||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 342,570 | 127,834 | 134,606 | ||||||||
| CASH AND CASH EQUIVALENTS, end of period | 740,020 | 342,570 | 127,834 | ||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||
| Cash paid during the period for interest | $ | 84,601 | $ | 64,695 | $ | 39,151 | |||||
| Cash paid during the period for income taxes | $ | 4,170 | $ | 1,587 | $ | 587 | |||||
| RADNET, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||
| (IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| REVENUE | |||||||
| Service fee revenue | $ | 445,576 | $ | 384,932 | |||
| Revenue under capitation arrangements | 31,525 | 35,451 | |||||
| Total service revenue | 477,101 | 420,383 | |||||
| OPERATING EXPENSES | |||||||
| Cost of operations, excluding depreciation and amortization | 411,436 | 356,592 | |||||
| Lease abandonment charges | 2,478 | 5,146 | |||||
| Depreciation and amortization | 36,016 | 32,686 | |||||
| Loss (gain) on sale and disposal of equipment and other | 1,541 | 1,004 | |||||
| Severance costs | 1,105 | 621 | |||||
| Total operating expenses | 452,576 | 396,049 | |||||
| INCOME (LOSS) FROM OPERATIONS | 24,525 | 24,334 | |||||
| OTHER INCOME AND EXPENSES | |||||||
| Interest expense | 18,073 | 16,607 | |||||
| Equity in earnings of joint ventures | (3,164 | ) | (2,492 | ) | |||
| Non-cash change in fair value of interest rate hedge | 577 | 7,236 | |||||
| Debt restructuring and extinguishment expenses | 2,383 | - | |||||
| Other expenses (income) | (8,668 | ) | (3,745 | ) | |||
| Total other (income) expenses | 9,201 | 17,606 | |||||
| INCOME (LOSS) BEFORE INCOME TAXES | 15,324 | 6,728 | |||||
| Provision for income taxes | (1,099 | ) | (732 | ) | |||
| NET INCOME (LOSS) | 14,225 | 5,996 | |||||
| Net income (loss) attributable to noncontrolling interests | 8,880 | 7,856 | |||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 5,345 | $ | (1,860 | ) | ||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.07 | $ | (0.03 | ) | ||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.07 | $ | (0.03 | ) | ||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||
| Basic | 73,574,262 | 67,904,999 | |||||
| Diluted | 75,537,595 | 67,904,999 | |||||
| RADNET, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA | |||||||||||||||
| (IN THOUSANDS) | |||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) attributable to Radnet, Inc. common stockholders | $ | 5,345 | $ | (1,860 | ) | $ | 2,793 | $ | 3,044 | ||||||
| Income taxes | 1,099 | 732 | 6,026 | 8,473 | |||||||||||
| Interest expense | 18,073 | 16,607 | 79,849 | 64,483 | |||||||||||
| Severance costs | 1,105 | 621 | 1,902 | 3,778 | |||||||||||
| Depreciation and amortization | 36,016 | 32,686 | 137,838 | 128,391 | |||||||||||
| Non-cash employee stock-based compensation | 8,465 | 5,404 | 29,834 | 26,785 | |||||||||||
| Loss (gain) on sale and disposal of equipment and other | 1,541 | 1,004 | 2,276 | 2,187 | |||||||||||
| Non-cash change in fair value of interest rate hedge | 577 | 7,236 | 8,006 | 8,185 | |||||||||||
| Other expenses (income) | (8,668 | ) | (3,745 | ) | (24,916 | ) | (6,354 | ) | |||||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | 5,018 | 1,308 | 14,995 | 1,308 | |||||||||||
| Lease abandonment charges | 2,478 | 5,146 | 2,478 | 5,146 | |||||||||||
| Loss (gain) on contribution of imaging centers into joint venture | - | - | - | (16,808 | ) | ||||||||||
| Loss (gain) on extinguishment of debt and related expenses | 2,383 | - | 11,292 | - | |||||||||||
| Non-cash change to contingent consideration | - | (429 | ) | 1,974 | (4,075 | ) | |||||||||
| Acquisition related non-cash intangible adjustment | - | - | - | 3,950 | |||||||||||
| Non-operational rent expenses | 1,114 | 881 | 4,233 | 3,629 | |||||||||||
| Acquisition transaction costs | 462 | 222 | 879 | 222 | |||||||||||
| Adjusted EBITDA - Radnet, Inc. | $ | 75,008 | $ | 65,813 | $ | 279,459 | $ | 232,344 | |||||||
| NOTE | |||||||||||||||
| Adjusted EBITDA - Imaging Center Segment | 70,468 | 63,004 | 264,901 | 225,846 | |||||||||||
| Adjusted EBITDA - Digital Health Segment | 4,540 | 2,809 | 14,558 | 6,498 | |||||||||||
| RADNET, INC. AND SUBSIDIARIES | |||||||||||||
| SCHEDULE OF ADJUSTED EARNINGS AND EARNINGS PER SHARE (3) | |||||||||||||
| (IN THOUSANDS EXCEPT SHARE DATA) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | |||||||||||||
| December 31, | |||||||||||||
| 2024 | 2023 (iv) | ||||||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO RADNET, INC. | |||||||||||||
| COMMON STOCKHOLDERS | $ | 5,345 | $ | (1,858 | ) | ||||||||
| Add severance costs | 1,105 | 621 | |||||||||||
| Add loss on lease abandonment/impairment | 2,478 | 5,146 | |||||||||||
| Add non-operational rent expenses (i) | 1,114 | 880 | |||||||||||
| Add acquisition transaction costs | 462 | 222 | |||||||||||
| Add loss on extinguishment of debt and related expenses | 2,383 | - | |||||||||||
| Add valuation adjustment for contingent consideration | - | (429 | ) | ||||||||||
| Add Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | 5,018 | 1,308 | |||||||||||
| Add/Subtract non-cash change in fair value of swap valuation (ii) | 577 | 7,236 | |||||||||||
| Total adjustments - loss (gain) | 13,137 | 14,984 | |||||||||||
| Subtract tax impact of Adjustments (iii) | 1,766 | 3,271 | |||||||||||
| TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE | |||||||||||||
| TO RADNET, INC. COMMON SHAREHOLDERS | 11,371 | 11,713 | |||||||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO RADNET, INC. | 16,716 | 9,855 | |||||||||||
| COMMON STOCKHOLDERS | |||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||||
| Diluted | 75,537,595 | 67,904,999 | |||||||||||
| ADJUSTED DILUTED NET INCOME PER SHARE | |||||||||||||
| ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.22 | $ | 0.15 | |||||||||
| (i) Represents rent expense associated with de novo sites under construction prior to them becoming operational. (ii) 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. (iii) Tax effected using (iv) Restated from what was presented in 2023 to include | |||||||||||||
| PAYMENTS BY PAYOR CLASS | |||
| Fourth Quarter | |||
| 2024 | |||
| Commercial Insurance | 58.0 | % | |
| Medicare | 23.5 | % | |
| Capitation | 6.6 | % | |
| Medicaid | 2.5 | % | |
| Workers Compensation/Personal Injury | 2.2 | % | |
| Other* | 7.2 | % | |
| Total | 100.0 | % | |
| * Includes management fee and Digital Health financial reporting unit revenue. | |||
| RADNET PAYMENTS BY MODALITY | ||||||||||||
| Fourth Quarter | Full Year | Full Year | Full Year | |||||||||
| 2024 | 2024 | 2023 | 2022 | |||||||||
| MRI | 36.9 | % | 37.1 | % | 36.8 | % | 36.8 | % | ||||
| CT | 15.7 | % | 15.9 | % | 16.8 | % | 17.5 | % | ||||
| PET/CT | 7.6 | % | 7.2 | % | 6.4 | % | 5.8 | % | ||||
| X-ray | 5.7 | % | 6.0 | % | 6.5 | % | 6.7 | % | ||||
| Ultrasound | 13.5 | % | 13.6 | % | 12.9 | % | 12.6 | % | ||||
| Mammography | 16.9 | % | 16.4 | % | 16.0 | % | 15.3 | % | ||||
| Nuclear Medicine | 0.9 | % | 1.0 | % | 0.8 | % | 0.9 | % | ||||
| Other | 2.8 | % | 2.7 | % | 3.9 | % | 4.5 | % | ||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
| PROCEDURES BY MODALITY* | |||||
| Fourth Quarter | Fourth Quarter | ||||
| 2024 | 2023 | ||||
| MRI | 452,063 | 398,625 | |||
| CT | 271,061 | 237,937 | |||
| PET/CT | 19,602 | 15,825 | |||
| Nuclear Medicine | 9,054 | 8,120 | |||
| Ultrasound | 655,531 | 617,301 | |||
| Mammography | 517,013 | 483,687 | |||
| X-ray and Other | 847,429 | 804,225 | |||
| Total | 2,771,753 | 2,565,720 | |||
| * Volumes include wholly owned and joint venture centers. | |||||
Footnotes
(1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and excludes losses or gains on the disposal of equipment, other income or loss, loss on debt extinguishments, bargain purchase gains 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 and extraordinary events which took 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 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, pre-tax loss or gain from AI segment and any other non-recurring or unusual transactions recorded during the period.
Adjusted Earnings Per Share is reconciled to its nearest comparable GAAP financial measure (see table on prior page). Adjusted Earnings 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.
FAQ
What was RadNet's (RDNT) revenue growth in Q4 2024?
How many imaging centers does RadNet (RDNT) operate as of Q4 2024?
What was RadNet's (RDNT) procedural volume growth in Q4 2024?
How much cash does RadNet (RDNT) have on its balance sheet at the end of 2024?
What was RadNet's (RDNT) Digital Health segment performance in Q4 2024?
