Artificial Intelligence
RadNet Reports Second Quarter Financial Results
- 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 of 28% 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 decreased 43.4% 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 28% of the pre-COVID-19 per day averages of January and February. Currently, we are close to 90% of our pre-COVID per day volumes and are optimistic about further recovery as the year progresses.”
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 $25.5 million in grants we received under the CARES Act Provider Relief Fund and approximately $44.4 million we received in the form of advances from the Centers for Medicare and Medicaid Services and one west coast insurance company. Despite having to repay these advances during the second half of this year, we expect that our business will add to the $84.6 million cash balance we had at quarter end,” added Dr. Berger.
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 $190.6 million and Adjusted EBITDA(1) of $22.6 million. Revenue decreased $98.5 million (or 34.1%) and Adjusted EBITDA(1) decreased $20.5 million (or 47.6%) from the second quarter of last year.
For the second quarter, RadNet reported Net Loss Attributable to RadNet, Inc. Common Stockholders (“Net Loss”) of $10.6 million, a decline of approximately $15.5 million from the second quarter of 2019. Adjusting for the impact of the non-cash change in the fair value of an interest rate hedge during the quarter on a tax-effected basis of $2.6 million (“Adjusted Net Loss”), Adjusted Net Loss was $8.0 million in the second quarter, a decline of $12.9 million from the second quarter of 2019.
Per share diluted Net Loss for the second quarter was $(0.21), compared to diluted Net Income of $0.10 in the second quarter of 2019 (based upon a weighted average number of diluted shares outstanding of 50.7 million in 2020 and 50.1 million in 2019). Adjusting for the impact of the non-cash change in the fair value of the interest rate hedge, per share diluted Adjusted Net Loss was $(0.16) in the second quarter compared to diluted Net Income of $0.10 in the second quarter of 2019.
Affecting Net Loss in the second quarter of 2020 were certain non-cash expenses or gains and non-recurring items including: $3.8 million non-cash expense from the change in the fair value of an interest rate hedge; $1.5 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $859,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $569,000 gain on the sale of certain capital equipment; and $1.1 million of non-cash amortization of deferred financing costs and loan discount on debt issuances.
For the second quarter of 2020, as compared with the prior year’s second quarter, MRI volume decreased 39.7%, CT volume decreased 31.6% and PET/CT volume decreased 17.6%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, decreased 43.7% over the prior year’s second quarter. On a same-center basis, including only those centers which were part of RadNet for both the second quarters of 2020 and 2019, MRI volume decreased 39.4%, CT volume decreased 31.7% and PET/CT volume decreased 16.9%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, decreased 43.4% over the prior year’s same quarter.
Six Month Financial Results
For the six months ended June 30, 2020, RadNet reported Revenue of $472.1 million and Adjusted EBITDA(1) of $43.0 million. Revenue decreased $88.5 million (or 15.8%) and Adjusted EBITDA(1) decreased $33.4 million (or 43.7%) from the same six month period last year.
For the six month period in 2020, RadNet reported Net Loss of $27.0 million, a decline of approximately $28.1 million over the first six months of 2019. Adjusting for the impact of the non-cash change in the fair value of an interest rate hedge during the six month period on a tax-effected basis of $2.8 million, Adjusted Net Loss was $24.2 million in the first six months of 2020, a decline of $25.3 million over the same period of 2019.
Per share diluted Net Loss for the first six months of 2020 was $(0.53), compared to a diluted Net Income of $0.02 in the same six month period of 2019 (based upon a weighted average number of diluted shares outstanding of 50.5 million in 2020 and 50.0 million in 2019). Adjusting for the impact of the non-cash change in the fair value of the interest rate hedge, per share diluted Adjusted Net Loss was $(0.48) in the first half of 2020 compared to a diluted Net Income of $0.02 in the same period of 2019.
Affecting Net Loss for the six month period of 2020 were certain non-cash expenses and non-recurring items including: $3.8 million non-cash expense from the change in the fair value of an interest rate hedge; $8.1 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $1.1 million of severance paid in connection with headcount reductions related to cost savings initiatives; and $2.2 million of combined non-cash amortization of deferred financing costs and loan discounts related to financing fees paid as part of our existing credit facilities.
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 | 52.4% | |||
Medicare | 18.4% | |||
Capitation | 18.3% | |||
Workers Compensation/Personal Injury | 3.9% | |||
Medicaid | 2.3% | |||
Other/Non Patient | 4.8% | |||
Total | 100.0% | |||
RADNET PAYMENTS BY MODALITY | |||||||||||||
Second Quarter | Full Year | Full Year | Full Year | ||||||||||
2020 | 2019 | 2018 | 2017 | ||||||||||
MRI | 36.1% | 35.8% | 35.2% | 34.9% | |||||||||
CT | 19.6% | 16.9% | 16.5% | 16.2% | |||||||||
PET/CT | 7.5% | 5.6% | 5.7% | 5.2% | |||||||||
X-ray | 7.3% | 8.1% | 8.4% | 8.9% | |||||||||
Ultrasound | 12.1% | 12.4% | 12.2% | 12.1% | |||||||||
Mammography | 12.2% | 15.2% | 15.8% | 16.3% | |||||||||
Nuclear Medicine | 1.1% | 1.0% | 1.1% | 1.1% | |||||||||
Other | 4.2% | 4.9% | 5.1% | 5.2% | |||||||||
100.0% | 100.0% | 100.0% | 100.0% | ||||||||||
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.
Artificial Intelligence
CleverTap launches Clever.AI, the AI-Driven Edge for Customer Engagement & Retention
Clever.AI will help brands achieve 66% higher conversion rates and 35% boost in operational efficiency
SAN FRANCISCO and MUMBAI, India, May 3, 2024 /PRNewswire/ — CleverTap, one of the leading all-in-one customer engagement and retention platforms, today announced the launch of Clever.AI, its AI engine. With Clever.AI, CleverTap seeks to enable brands with the next generation of AI capabilities required to build human-like understanding of customers and deliver personalized experiences efficiently that resonate with them, ultimately maximizing customer lifetime value.
Clever.AI is built on the foundation of three core AI pillars – Predictive, Generative, and Prescriptive. Clever.AI propels these three pillars to transform the way brands engage with customers and make customer interactions more intelligent, and efficient.
Clever.AI enables brands to become:
Insightful: With Predictive AI capabilities, it forecasts precise business outcomes, helping brands to anticipate customer needs. Clever.AI’s insights are powered by CleverTap’s proprietary TesseractDB™ which ensures data granularity with an extended lookback period, making predictions more accurate, and enabling brands to make informed decisions, resulting in improved marketing ROIEmpathetic: Taking GenAI forward, Clever.AI merges creativity with emotional intelligence, crafting content that resonates on a human level. This empathetic approach helps brands drive higher conversions and engages customers with hyper-personalized experiencesActionable: Leveraging Prescriptive AI capabilities, it provides actionable recommendations to maximize conversions throughout the customer journey by helping brands identify the optimal engagement strategies in real-timePeter Takacs, Digital Product Manager, Burger King said, “I would rate it 10 for its ease of use and numerous possible use cases. We uplifted our marketing campaigns by easily experimenting with multiple possibilities and quickly converging on the optimum one. It opens up a new era of continuous experimentation for us.”
Anand Jain, Co-founder and Chief Product Officer, CleverTap said, “We’re thrilled to unveil Clever.AI, a testament of our pursuit over the last several years in leading the way in adopting the latest tech to transform customer engagement. We will continue to innovate CleverTap’s All-in-One engagement platform with Clever.AI enhancing its precision in predictions, its ability to prescribe intelligent customer experiences strengthened by advanced product analytics and deeper persona profiling to ensure brands can build highly personalized experiences, and campaigns more effectively, ensuring every customer interaction is personalized and outcome driven.”
With Clever.AI, brands have already experienced a boost in conversion with significantly higher operational efficiency. They witnessed a 66 percent increase in conversion rates, 35% boost in operational efficiency and a 3x improvement in click-through rates (CTRs), with an increase across metrics such as purchases, and average order values (AOVs). Moreover, Clever.AI enhanced operational efficiency by simplifying campaign roll-outs, content creation, and experimentation at scale. Clever.AI has helped leading brands like TouchnGo, Swiggy, Burger King add efficiency to their campaigns.
CleverTap will unveil its new AI capabilities through its Spring Release ’24 event slated from 6th May to 9th May, through a series of thought-provoking sessions on how AI can make campaigns more intelligent, efficient, and engaging for brands.
About CleverTap
CleverTap is the all-in-one engagement platform that helps brands unlock limitless customer lifetime value by helping them create personalized experiences to retain their most valuable customers. The platform empowers businesses to orchestrate experiences for individuals across their lifecycles and design personalized journeys that span a lifetime. It offers analytics that encompasses every aspect of the lifecycle, enabling businesses to measure and optimize each experience in real-time. Its unique AI capability is insightful, empathetic, and prescriptive, facilitating smarter and faster decisions. The all-in-one platform unifies experiences from every touchpoint, paving the way for a new era of customer engagement.
The platform is powered by TesseractDB™ – the world’s first purpose-built database for customer engagement, offering both speed and economies of scale.
CleverTap is trusted by 2000 customers, including Electronic Arts, TiltingPoint, Gamebasics, Big Fish, MobilityWare, TED, English Premier League, TD Bank, Carousell, AirAsia, Papa John’s, and Tesco.
Backed by leading investors such as Peak XV Partners, Tiger Global, Accel, CDPQ, and 360 One, the company is headquartered in San Francisco, California, with presence in New York, São Paulo, Bogota, London, Amsterdam, Sofia, Dubai, Mumbai, Bangalore, Delhi, Singapore, Jakarta, and Ho Chi Minh.
For more information, visit clevertap.com or follow us on: LinkedIn: https://www.linkedin.com/company/clevertap/X: https://twitter.com/CleverTap
Forward-Looking Statements
Some of the statements in this press release may represent CleverTap’s belief in connection with future events and may be forward-looking statements, or statements of future expectations based on currently available information. CleverTap cautions that such statements are naturally subject to risks and uncertainties that could result in the actual outcome being absolutely different from the results anticipated by the statements mentioned in the press release.
Factors such as the development of general economic conditions affecting our business, future market conditions, our ability to maintain cost advantages, uncertainty with respect to earnings, corporate actions, client concentration, reduced demand, liability or damages in our service contracts, unusual catastrophic loss events, war, political instability, changes in government policies or laws, legal restrictions impacting our business, impact of pandemic, epidemic, any natural calamity and other factors that are naturally beyond our control, changes in the capital markets and other circumstances may cause the actual events or results to be materially different, from those anticipated by such statements. CleverTap does not make any representation or warranty, express or implied, as to the accuracy, completeness, or updated or revised status of such statements. Therefore, in no case whatsoever will CleverTap and its affiliate companies be liable to anyone for any decision made or action taken in conjunction.
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Artificial Intelligence
Appian Named a Leader in the 2024 Gartner® Magic Quadrant™ for Process Mining Platforms Report
LONDON, May 3, 2024 /PRNewswire/ — Appian (Nasdaq: APPN) today announced it has been named a Leader by Gartner in its 2024 Magic Quadrant for Process Mining Platforms report. The report evaluated 18 vendors and their product offerings. For more information, download a complimentary copy of the Gartner Process Mining 2024 report.
Gartner defines Process Mining platforms as tools that deliver visibility and insights to technology innovation leaders that enable smart decision making and strong performance on an organisation’s critical priorities. Features that make Appian a leader in Process Mining, include:
Faster data prep that eliminates complex transformation with always-ready data from multiple sources.Automated process analysis and intelligent recommendations for where and how to take action.A low-code experience for measuring, monitoring, and optimising process performance—all within one platform.”We believe that Appian’s recognition in the Gartner Process Mining Platforms Magic Quadrant underscores our dedication to process excellence. Through Process HQ, we integrate data fabric, process mining, machine learning, and generative AI to streamline manual data prep, enabling businesses to gain insights swiftly and implement improvements easily,” said Michael Beckley, CTO and Founder of Appian. “Our unified approach merges Process Mining with AI-driven process automation, setting a new standard for efficiency and intelligence.”
Business users need greater visibility into the full breadth of their enterprise data and processes in order to maximise operational efficiency and strategic decision-making. By combining the latest technologies in data fabric, process mining, machine learning, and generative AI, Process HQ helps monitor and improve every business process built on Appian. Process HQ makes it easy to reduce costs, risks, and delays, improve compliance, and drive better business outcomes, without the need for costly and time-consuming data collection efforts.
Appian is now an industry leader across its value proposition to Design, Automate, and Optimise the most complex business processes. In addition to today’s announcement, Appian was named a Leader in the 2023 Gartner® Magic Quadrant™ for Enterprise Low-Code Application Platforms report, and was ranked #1 for the Business Workflow Automation with Integration Use Case in the 2023 Gartner® Critical Capabilities for Enterprise Low-Code Application Platforms (LCAP) report.
To access the report and to learn more about Appian’s positioning, visit https://ap.pn/3y2ClZy. Register for our upcoming webinar Process Intelligence Made Easy: The Key to Better Business Decisions on June 20, 2024 at 12pm EST to discover how Process HQ can improve business processes.
Gartner disclaimerGartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organisation and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.
About Appian
Appian is a software company that automates business processes. The Appian AI Process Platform includes everything you need to design, automate, and optimise even the most complex processes, from start to finish. The world’s most innovative organisations trust Appian to improve their workflows, unify data, and optimise operations—resulting in better growth and superior customer experiences. For more information, visit appian.com. [Nasdaq: APPN]
Follow Appian: LinkedIn, X, and X (UK).
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Artificial Intelligence
Innodisk Introduces iCAP Air: Advancing Air Quality Management through Autonomous Decision-Making
TAIPEI, May 3, 2024 /PRNewswire/ — Innodisk, a global leader in AI solutions, has taken a pivotal step forward in environmental sustainability with the launch of its latest innovation, the “iCAP Air” air quality management solution. This solution empowers businesses worldwide to enhance air quality, sustainability, and human health. Additionally, business can benefit from monthly AI-generated air quality data report, providing valuable insights for informed decision-making.
Leveraging its expertise in edge computing and software and hardware integration, along with the expertise of its subsidiary Sysinno in air quality detection, Innodisk has achieved the development of the “iCAP Air” air quality management solution. This solution integrates advanced technology, including the innovative “iAeris7” air quality detector from Sysinno, to deliver accuracy in detecting temperature, humidity, fine suspended particles (PM2.5), suspended particles (PM10), carbon dioxide (CO2), formaldehyde and total volatile organic compounds (TVOC). It can also be customized to detect NO2, SO2, CO, NH3, and other air factors. At the same time, the iAeris7 device is known for its reliability, patented technology, and various international certifications, including those from SGS and FCC/CE/RoHS/NCC/BSMI.
The solution also includes the “iCAP Air Server,” designed to manage large-scale deployment and data from up to 100 air quality detectors, ensuring seamless integration and efficient operation, even in complex environments. Additionally, iCAP Air provides a user-friendly air quality management platform, enabling organizations to monitor air quality in real-time via a mobile app or internet browser, receive automatic alerts, and optimize air purification or exhaust ventilation system.
iCAP Air is a comprehensive solution that simplifies air quality management for users. It is tailored for medium to large-sized sites or densely populated, enclosed spaces such as medical institutions, smart manufacturing facilities, public transportation hubs, indoor parking facilities, and department stores. Innodisk’s “iCAP Air” air quality management solution represents a milestone for all businesses committed to leveraging technology for the greater good of air quality and society.
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