RadNet Reports Second Quarter Financial Results
RadNet reported a challenging second quarter for 2020, with a 34.1% revenue decrease to $190.6 million compared to $289.1 million in Q2 2019. Adjusted EBITDA fell 47.6% to $22.6 million. Procedural volumes have rebounded to 90% of pre-COVID levels from a low of 28% in April. The company ended the quarter with over $84 million in cash and undrawn credit lines. A collaboration with Hologic, Inc. was announced for improving breast cancer care and advancing AI solutions. Net loss attributable was $10.6 million, a significant decline from a profit of $0.10 per share last year.
- Procedural volumes recovered to approximately 90% of pre-COVID levels.
- Maintained a cash balance exceeding $84 million.
- Announced a collaboration with Hologic to enhance breast cancer care and develop AI solutions.
- Revenue decreased 34.1% to $190.6 million.
- Adjusted EBITDA fell 47.6% to $22.6 million.
- Net loss of $10.6 million compared to a profit of $0.10 per share last year.
- As a result of taking immediate expense and cash savings measures to react to the impact of COVID-19 on patient volume, RadNet finished the quarter with a cash balance exceeding
$84 million and was undrawn on its$137.5 million revolving line of credit - RadNet has re-opened 77 of the 102 facilities temporarily closed because of COVID-19
- Procedural volumes have returned to approximately
90% of pre-COVID-19 per day volumes, from a low point in mid-April of28% of pre-COVID-19 per day volumes - For the quarter, and as a result of COVID-19, Revenue decreased
34.1% to$190.6 million in the second quarter of 2020 from$289.1 million in the second quarter of 2019 - Adjusted EBITDA(1) decreased
47.6% to$22.6 million in the second quarter of 2020 from$43.1 million in the second quarter of 2019 - Adjusted diluted loss per share was
$(0.16) in the second quarter of 2020, as adjusted on a tax-effected basis for the non-cash change in the fair value of an interest rate hedge, as compared with diluted earnings per share of$0.10 from the prior year’s second quarter - Aggregate procedural volumes decreased
43.7% and same-center procedural volumes decreased43.4% from the second quarter of 2019 - Subsequent to quarter end, RadNet and Hologic, Inc. announced a comprehensive collaboration to improve breast cancer care, including the co-development of Artificial Intelligence tools, data-sharing and an upgrade of RadNet’s fleet of Hologic mammography units to cutting-edge technology
LOS ANGELES, Aug. 10, 2020 (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 332 owned and/or operated outpatient imaging centers, today reported financial results for its second quarter of 2020.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am extremely pleased with the recovery we are experiencing relative to the low point of our procedural volumes during this COVID-19 period. Our procedural volumes reached a low point during the second week of April, at roughly
Dr. Berger continued, “Our operations teams and executive management moved with great urgency in March to aggressively take the actions necessary to lower our costs and conserve cash under very extreme health and social conditions and substantially reduced patient volume. The actions we took, which included temporarily closing facilities, consolidating patient volume into the centers of excellence which remained open, negotiating and restructuring agreements with vendors and landlords and reducing employee costs through furloughs and temporary salary cuts, among other actions, proved to secure our business in this difficult period. I want to thank the employees of RadNet, who are meeting the challenges during these difficult times and who are making great personal sacrifices for the benefit of our Company, our referring physicians, and most importantly, our patients.”
“We will continue to evaluate the re-opening of locations and bring back furloughed employees as our business further recovers. Currently, 25 of our 332 facilities remain closed. During the COVID-19 period, we were assisted by approximately
Dr. Berger concluded, “Notwithstanding this difficult operating environment, we remain committed to executing our strategic objectives. Last week, we announced a collaboration agreement with Hologic, Inc. focused on improving breast health and advancing both companies’ objectives around Artificial Intelligence (A.I.). The multifaceted agreement incorporates data sharing, co-development of R&D, collaboration on A.I. algorithms, joint market opportunities and the upgrade of RadNet’s fleet of Hologic mammography units to state-of-the art imaging technology. This collaboration with Hologic furthers RadNet’s commitment to developing A.I. solutions that will transform radiology and improve radiologist accuracy and patient care. We remain on track with our DeepHealth division’s plan to submit for U.S. Food and Drug Administration review its first A.I. product later this year. In addition to this, we continue to pursue accretive strategic acquisitions of targets whose operations have been impacted as a result of the COVID-19 market conditions. We look forward to providing updates on these activities in the near future.”
Second Quarter Financial Results
For the second quarter of 2020, RadNet reported Revenue of
For the second quarter, RadNet reported Net Loss Attributable to RadNet, Inc. Common Stockholders (“Net Loss”) of
Per share diluted Net Loss for the second quarter was
Affecting Net Loss in the second quarter of 2020 were certain non-cash expenses or gains and non-recurring items including:
For the second quarter of 2020, as compared with the prior year’s second quarter, MRI volume decreased
Six Month Financial Results
For the six months ended June 30, 2020, RadNet reported Revenue of
For the six month period in 2020, RadNet reported Net Loss of
Per share diluted Net Loss for the first six months of 2020 was
Affecting Net Loss for the six month period of 2020 were certain non-cash expenses and non-recurring items including:
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 second quarter 2020 results on Monday, August 10th, 2020 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Monday, August 10, 2020
Time: 10:30 a.m. Eastern Time
Dial In-Number: 800-437-2398
International Dial-In Number: 786-204-3966
It is recommended that participants dial in approximately 5 to 10 minutes prior to the start of the 10:30 a.m. call. There will also be simultaneous and archived webcasts available at http://public.viavid.com/index.php?id=141056 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 7462345.
Regulation G: GAAP and Non-GAAP Financial Information
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 ongoing impact of the COVID-19 pandemic on our business, suppliers, payors, customers, referral sources, partners, patients and employees, including (i) government’s unprecedented action regarding existing and potential restrictions and/or obligations related to citizen and business activity to contain the virus; (ii) the consequences of an economic downturn resulting from the impacts of COVID-19 and the possibility of a global economic recession; (iii) the impact of the volume of canceled or rescheduled procedures, whether as a result of government action or patient choice; (iv) measures we are taking to respond to the COVID-19 pandemic, including changes to business practices; (v) the impact of government and administrative regulation, guidance and appropriations; (vi) changes in our revenues due to declining patient procedure volumes, changes in payor mix; (vii) potential increased expenses or workforce disruptions related to our employees that could lead to unavailability of key personnel; (viii) workforce disruptions related to our key partners, suppliers, vendors and others we do business with; (ix) the impact of return to work orders in certain states in which we operate; and (x) increased credit and collectability risks;
- 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;
- 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.
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 332 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey and New York. In addition, RadNet provides radiology information technology solutions, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 8,600 employees. For more information, visit http://www.radnet.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning successfully integrating acquired operations, successfully achieving financial guidance, successfully developing and integrating new lines of business, continuing to grow its business by generating patient referrals and contracts with radiology practices, and receiving third-party reimbursement for diagnostic imaging services, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause the Company's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet's business and its financial results are detailed in its most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
CONTACTS:
RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
| RADNET, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) | |||||||
| June 30, 2020 | December 31, 2019 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 84,583 | $ | 40,165 | |||
| Accounts receivable | 125,745 | 154,763 | |||||
| Due from affiliates | 1,472 | 1,242 | |||||
| Prepaid expenses and other current assets | 35,720 | 45,004 | |||||
| Total current assets | 247,520 | 241,174 | |||||
| PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS | |||||||
| Property and equipment, net | 370,188 | 367,795 | |||||
| Operating lease right-of-use assets | 448,855 | 445,477 | |||||
| Total property, equipment and right-of-use assets | 819,043 | 813,272 | |||||
| OTHER ASSETS | |||||||
| Goodwill | 467,803 | 441973 | |||||
| Other intangible assets | 57,601 | 42,994 | |||||
| Deferred financing costs | 1,336 | 1,559 | |||||
| Investment in joint ventures | 37,370 | 34,470 | |||||
| Deferred tax assets, net of current portion | 46,226 | 34,548 | |||||
| Deposits and other | 40,104 | 36,996 | |||||
| Total assets | $ | 1,717,003 | $ | 1,646,986 | |||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable, accrued expenses and other | $ | 206,272 | 207,585 | ||||
| Due to affiliates | 20,042 | 14,347 | |||||
| Deferred revenue | 45,700 | 1,316 | |||||
| Current finance lease liability | 3,264 | 3,283 | |||||
| Current operating lease liability | 65,400 | 61,206 | |||||
| Current portion of notes payable | 41,715 | 39,691 | |||||
| Total current liabilities | 382,393 | 327,428 | |||||
| LONG-TERM LIABILITIES | |||||||
| Long-term finance lease liability | 1,682 | 3,264 | |||||
| Long-term operating lease liability | 424,018 | 420,922 | |||||
| Notes payable, net of current portion | 634,840 | 652,704 | |||||
| Other non-current liabilities | 40,814 | 9,529 | |||||
| Total liabilities | 1,483,747 | 1,413,847 | |||||
| EQUITY | |||||||
| RadNet, Inc. stockholders' equity: | |||||||
| Common stock - $.0001 par value, 200,000,000 shares authorized; 51,554,760 and 50,314,328 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 5 | 5 | |||||
| Additional paid-in-capital | 304,012 | 262,865 | |||||
| Accumulated other comprehensive loss | (26,098 | ) | (8,026 | ) | |||
| Accumulated deficit | (130,111 | ) | (103,159 | ) | |||
| Total RadNet, Inc.'s stockholders' equity | 147,808 | 151,685 | |||||
| Noncontrolling interests | 85,448 | 81,454 | |||||
| Total equity | 233,256 | 233,139 | |||||
| Total liabilities and equity | $ | 1,717,003 | $ | 1,646,986 | |||
| RADNET, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| REVENUE | ||||||||||||||||
| Provision for bad debts | ||||||||||||||||
| Service fee revenue | $ | 155,698 | $ | 258,171 | $ | 404,031 | 500,844 | |||||||||
| Revenue under capitation arrangements | 34,868 | 30,926 | 68,099 | 59,803 | ||||||||||||
| Total revenue | 190,566 | 289,097 | 472,130 | 560,647 | ||||||||||||
| Provider relief funding | 25,475 | - | 25,475 | - | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Cost of operations, excluding depreciation and amortization | 194,217 | 246,558 | 461,635 | 489,615 | ||||||||||||
| Depreciation and amortization | 21,355 | 20,083 | 43,289 | 39,703 | ||||||||||||
| (Gain) loss on sale and disposal of equipment and other | (569 | ) | 101 | 202 | 1,073 | |||||||||||
| Severance costs | 859 | 371 | 1,076 | 1,002 | ||||||||||||
| Total operating expenses | 215,862 | 267,113 | 506,202 | 531,393 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 179 | 21,984 | (8,597 | ) | 29,254 | |||||||||||
| OTHER INCOME AND EXPENSES | ||||||||||||||||
| Interest expense | 10,831 | 12,399 | 22,382 | 24,694 | ||||||||||||
| Equity in earnings of joint ventures | (945 | ) | (2,244 | ) | (2,900 | ) | (4,117 | ) | ||||||||
| Non-cash change in fair vaue of interest rate hedge | 3,843 | - | 3,843 | - | ||||||||||||
| Other (income) expenses | (115 | ) | 1,269 | (108 | ) | 1,269 | ||||||||||
| Total other expenses | 13,614 | 11,424 | 23,217 | 21,846 | ||||||||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (13,435 | ) | 10,560 | (31,814 | ) | 7,408 | ||||||||||
| Benefit from (provision for) income taxes | 4,475 | (2,969 | ) | 8,856 | (1,740 | ) | ||||||||||
| NET (LOSS) INCOME | (8,960 | ) | 7,591 | (22,958 | ) | 5,668 | ||||||||||
| Net income attributable to noncontrolling interests | 1,634 | 2,692 | 3,994 | 4,503 | ||||||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | (10,594 | ) | $ | 4,899 | $ | (26,952 | ) | $ | 1,165 | ||||||
| BASIC NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | (0.21 | ) | $ | 0.10 | $ | (0.53 | ) | $ | 0.02 | ||||||
| DILUTED NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | (0.21 | ) | $ | 0.10 | $ | (0.53 | ) | $ | 0.02 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||
| Basic | 50,672,219 | 49,702,869 | 50,483,274 | 49,490,234 | ||||||||||||
| Diluted | 50,672,219 | 50,144,540 | 50,483,274 | 49,988,036 | ||||||||||||
| RADNET, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS | ||||||||
| (IN THOUSANDS) | ||||||||
| (unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2020 | 2019 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (22,958 | ) | $ | 5,668 | |||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 43,289 | 39,703 | ||||||
| Amortization of operating lease assets | 34,094 | 32,937 | ||||||
| Equity in earnings of joint ventures | (2,900 | ) | (4,117 | ) | ||||
| Distributions from joint ventures | - | 3,438 | ||||||
| Amortization deferred financing costs and loan discount | 2,163 | 2,021 | ||||||
| Loss on sale and disposal of equipment | 202 | 1,073 | ||||||
| Amortization of cash flow hedge | 892 | - | ||||||
| Non-cash change in fair value of interest rate hedge | 3,843 | - | ||||||
| Stock-based compensation | 8,078 | 5,582 | ||||||
| Other noncash item included in cost of operations | - | (559 | ) | |||||
| Change in fair value of contingent consideration | (97 | ) | (1,953 | ) | ||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | ||||||||
| Accounts receivable | 29,018 | (12,042 | ) | |||||
| Other current assets | 9,884 | 4,331 | ||||||
| Other assets | (4,257 | ) | 2,069 | |||||
| Deferred taxes | (11,678 | ) | (3,542 | ) | ||||
| Operating leases | (30,182 | ) | (32,268 | ) | ||||
| Deferred revenue | 44,384 | (666 | ) | |||||
| Accounts payable, accrued expenses and other | 27,690 | 2,860 | ||||||
| Net cash provided by operating activities | 131,465 | 44,535 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of imaging facilities and other acquisitions | (4,188 | ) | (27,149 | ) | ||||
| Equity investments at fair value | - | (143 | ) | |||||
| Purchase of property and equipment | (64,193 | ) | (50,342 | ) | ||||
| Proceeds from sale of equipment | 779 | 760 | ||||||
| Proceeds from sale of equity interests in a joint venture | - | 132 | ||||||
| Equity contributions in existing joint ventures | - | (103 | ) | |||||
| Net cash used in investing activities | (67,602 | ) | (76,845 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Principal payments on notes and leases payable | (1,814 | ) | (3,320 | ) | ||||
| Payments on Term Loan Debt | (21,648 | ) | (19,469 | ) | ||||
| Proceeds from issuance of new debt, net of issuing costs | - | 97,144 | ||||||
| Proceeds from Payment Protection Program | 4,023 | - | ||||||
| Proceeds from sale of noncontrolling interest | - | 5,275 | ||||||
| Contribution from a noncontrolling partners | - | 750 | ||||||
| Proceeds from revolving credit facility | 250,900 | 236,200 | ||||||
| Payments on revolving credit facility | (250,900 | ) | (264,200 | ) | ||||
| Proceeds from issuance of common stock upon exercise of options | - | 50 | ||||||
| Net cash (used in) provided by financing activities | (19,439 | ) | 52,430 | |||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (6 | ) | (5 | ) | ||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 44,418 | 20,115 | ||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 40,165 | 10,389 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 84,583 | $ | 30,504 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Cash paid during the period for interest | $ | 22,826 | $ | 23,292 | ||||
| RADNET, INC. | |||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. | |||||||||||||
| COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1) | |||||||||||||
| (IN THOUSANDS) | |||||||||||||
| Three Months Ended | |||||||||||||
| June 30, | |||||||||||||
| 2020 | 2019 | ||||||||||||
| Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders | $ | (10,594 | ) | $ | 4,899 | ||||||||
| Plus Interest Expense | 10,831 | 12,399 | |||||||||||
| Plus Provision (Benefit) for Income Taxes | (4,475 | ) | 2,969 | ||||||||||
| Plus Depreciation and Amortization | 21,355 | 20,083 | |||||||||||
| Plus Other Expenses (Income) | (115 | ) | 1,269 | ||||||||||
| Plus Severance Costs | 859 | 371 | |||||||||||
| Plus Loss (Gain) on Sale of Equipment | (569 | ) | 101 | ||||||||||
| Plus Non-cash Change in Fair Value of Interest Rate Hedge | 3,843 | - | |||||||||||
| Plus Non Cash Employee Stock Compensation | 1,456 | 1,044 | |||||||||||
| Adjusted EBITDA(1) | $ | 22,591 | $ | 43,135 | |||||||||
| Six Months Ended | |||||||||||||
| June 30, | |||||||||||||
| 2020 | 2019 | ||||||||||||
| Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders | $ | (26,952 | ) | $ | 1,165 | ||||||||
| Plus Interest Expense | 22,382 | 24,694 | |||||||||||
| Plus Provision (Benefit) for Income Taxes | (8,856 | ) | 1,740 | ||||||||||
| Plus Depreciation and Amortization | 43,289 | 39,703 | |||||||||||
| Plus Other Expenses (Income) | (108 | ) | 1,269 | ||||||||||
| Plus Severance Costs | 1,076 | 1,002 | |||||||||||
| Plus Loss on Sale of Equipment | 202 | 1,072 | |||||||||||
| Plus Non-cash Change in Fair Value of Interest Rate Hedge | 3,843 | - | |||||||||||
| Plus Non Cash Employee Stock Compensation | 8,078 | 5,583 | |||||||||||
| Adjusted EBITDA(1) | $ | 42,954 | $ | 76,228 | |||||||||
| PAYOR CLASS BREAKDOWN | ||||
| Second Quarter | ||||
| 2020 | ||||
| Commercial Insurance/Other Patient Revenue | ||||
| Medicare | ||||
| Capitation | ||||
| Workers Compensation/Personal Injury | ||||
| Medicaid | ||||
| Other/Non Patient | ||||
| Total | ||||
| RADNET PAYMENTS BY MODALITY | |||||||||||||
| Second Quarter | Full Year | Full Year | Full Year | ||||||||||
| 2020 | 2019 | 2018 | 2017 | ||||||||||
| MRI | |||||||||||||
| CT | |||||||||||||
| PET/CT | |||||||||||||
| X-ray | |||||||||||||
| Ultrasound | |||||||||||||
| Mammography | |||||||||||||
| Nuclear Medicine | |||||||||||||
| Other | |||||||||||||
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.
FAQ
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