Artificial Intelligence
RadNet Reports Second Quarter Financial Results, Including Record Quarterly Revenue and Adjusted EBITDA(1), and Revises Upwards 2021 Financial Guidance Ranges
- Revenue increased 75.2% to an all-time quarterly record of $333.9 million in the second quarter of 2021 from $190.6 million in the second quarter of 2020
- Adjusted EBITDA(1) increased 150.7% to an all-time quarterly record of $56.6 million in the second quarter of 2021 from $22.6 million in the second quarter of 2020
- Adjusting for one-time items impacting Net Income in the quarter, Adjusted Earnings Per Share(3) was $0.27 for the second quarter of 2021; This compares with Adjusted Net Loss(3) of $(0.14) per diluted share for the second quarter of 2020
- Aggregate procedural volumes increased 92.7%; Same-center procedural volumes increased 80.5% compared to the second quarter of 2020
- RadNet has completed deployment of its FDA approved DeepHealth Saige-Q™ mammography AI software within its northeast and mid-Atlantic centers with positive physician reception
- RadNet further revises full-year 2021 guidance levels to increase Revenue, Adjusted EBITDA(1) and Free Cash Flow ranges
LOS ANGELES, Aug. 09, 2021 (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 353 owned and/or operated outpatient imaging centers, today reported financial results for its second quarter of 2021.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am extremely pleased with our financial results in the second quarter. We set all-time quarterly records for Revenue and Adjusted EBITDA(1), and achieved an Adjusted EBITDA(1) margin of 17.0%, higher by 5.1% and 2.1% from the second quarters of 2020 and 2019, respectively. The strong operating performance was the result of recovering procedural volumes in combination with lower costs as a result of actions we took during the COVID-19 period in 2020 and continued cost-containment measures implemented in 2021. Additionally, improvements in our revenue cycle and cash collections have contributed to our improving results and lower DSOs. We are seeing opportunity in virtually all aspects of our multi-faceted business. We project significant growth ahead from the strategic capital investments we are making in equipment, our development efforts in artificial intelligence, the pipeline for tuck-in acquisitions and discussions surrounding new hospital health system joint ventures.”
Dr. Berger continued, “Given the positive trends we are experiencing in our business and the strong financial performance of both the first and second quarters, we have elected to further revise our guidance levels upwards. The increased 2021 guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow also anticipate improved operating margins. While our revised guidance is reflective of our confidence and optimism regarding the rest of the year’s performance, we remain cognizant of the possibility of an additional surge of COVID-19 or its Delta variant in any or all of our regional markets, and are prepared to respond appropriately,” added Dr. Berger.
Dr. Berger concluded, “On April 19th, we announced that we received FDA clearance for our DeepHealth AI mammography triage software, Saige-Q™, which is a worklist prioritization tool that enables radiologists to more effectively manage their mammography cases with the use of artificial intelligence. We are in the process of deploying this technology across our various markets and are pleased to announce that we have completed installation of this technology in our northeast and mid-Atlantic markets. We expect to complete nationwide deployment, to include our radiologists in California, by the end of the third quarter. Early feedback from our radiologists is excellent. While we are observing improved productivity, most importantly, we are providing our patients and payors with greater accuracy, fewer patient call-backs and the possibility of detecting breast disease one to two years earlier than otherwise possible. We continue to evaluate further areas of AI that can improve effectiveness, decrease costs and drive new revenue streams through providing innovative cost effective screening programs to large insurance companies who are interested in new population health models to improve patient care.”
Second Quarter Financial Results
For the second quarter of 2021, RadNet reported Revenue of $333.9 million and Adjusted EBITDA(1) of $56.6 million. Revenue increased $143.4 million (or 75.2%) and Adjusted EBITDA(1) increased $34.0 million (or 150.7%) from the second quarter of 2020.
Adjusted Diluted Net Income Attributable to RadNet, Inc. Common Stockholders (Adjusted Earnings(3)) for the second quarter of 2021 was $14.2 million, or $0.27 per diluted share as compared with Adjusted Net Loss of $6.9 million, or $(0.14) per diluted share for the same period in 2020. Unadjusted for one-time items, Net Income Attributable to RadNet, Inc. Common Shareholders (“Net Income”) for the second quarter of 2021 was $2.9 million, or $0.05 per diluted share. This compares to Net Loss of $10.6 million, or $(0.21) per diluted share, in the second quarter of 2020. These per share values are based upon weighted average number of diluted shares outstanding of 53.1 million in the second quarter of 2021 and 50.7 million of diluted shares outstanding in the second quarter of 2020.
Affecting Net Income in the second quarter of 2021 were certain non-cash expenses and non-recurring items including: $8.9 million of non-cash employee stock compensation expense; $268,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $1.6 million gain on the disposal of certain capital equipment; $1.2 million of non-cash loss from interest rate swaps; $6.0 million expense from debt restructuring and extinguishment as a result of our recent refinancing transaction; and $812,000 of amortization of deferred financing costs and loan discount related to our existing credit facilities.
For the second quarter of 2021, as compared with the prior year’s second quarter, MRI volume increased 88.1%, CT volume increased 67.6% and PET/CT volume increased 28.8%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 92.7% 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 2021 and 2020, MRI volume increased 73.0%, CT volume increased 54.9% and PET/CT volume increased 26.5%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 80.5% from the prior year’s same quarter.
Six Month Financial Results
For the six months ended June 30, 2021, RadNet reported Revenue of $649.2 million and Adjusted EBITDA(1) of $102.1 million. Revenue increased $177.1 million (or 37.5%) and Adjusted EBITDA(1) increased $59.2 million (or 137.8%) from the same six month period last year.
For the six month period in 2021, RadNet reported Net Income of $12.3 million, an increase of approximately $39.3 million over the first six months of 2020. Per share diluted Net Income for the first six months of 2021 was $0.23, compared to a diluted Net Loss of $(0.53) in the same six month period of 2020 (based upon a weighted average number of diluted shares outstanding of 52.9 million in 2021 and 50.5 million in 2020).
Affecting Net Income for the six month period of 2021 were certain non-cash expenses and non-recurring items including: $17.1 million of non-cash employee stock compensation expense; $551,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $2.9 million gain on the disposal of certain capital equipment; $8.8 million of non-cash gain from interest rate swaps; $6.0 million expense from debt restructuring and extinguishment as a result of our recent refinancing transaction; and $2.0 million of amortization of deferred financing costs and loan discount related to our existing credit facilities.
2021 Guidance Update
RadNet amends its previously announced guidance levels as follows:
| Original Guidance Range |
Revised Guidance Range After Q1 Results |
Revised Guidance Range After Q2 Results |
|||||
| Total Net Revenue | $1,250 – $1,300 million | $1,275 – $1,325 million | $1,300 – $1,350 million | ||||
| Adjusted EBITDA(1) | $180 – $190 million | $187 – $197 million | $200 – $210 million | ||||
| Capital Expenditures(a) | $70 – $75 million | $72 – $77 million | $80 – $85 million | ||||
| Cash Interest Expense | $39 – $44 million | $35 – $40 million | $35 – $40 million | ||||
| Free Cash Flow (b)(2) | $60 – $70 million | $70 – $80 million | $75 – $85 million | ||||
| (a) | Net of proceeds from the sale of equipment, imaging centers and joint venture interests, and excludes New Jersey Imaging Network capital expenditures. |
| (b) | Defined by the Company as Adjusted EBITDA(1) less Capital Expenditures and Cash Paid for Interest. |
Dr. Berger highlighted, “Based upon the strong financial results in our first and second quarters and our confidence in projected performance for the remainder of the year, we have increased guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow(2). Additionally, we have raised our Capital Expenditures level to reflect additional investments in growth opportunities we have identified in several of our core regional markets.”
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 2021 results on Monday, August 9th, 2021 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Monday, August 9, 2021
Time: 10:30 a.m. Eastern Time
Dial In-Number: 888-394-8218
International Dial-In Number: 646-828-8193
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=146019 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 3277272.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are expressions of our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, and anticipated future conditions, events and trends. Forward-looking statements can generally be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements in this press release include, among others, statements we make regarding response to and the expected future impacts of COVID-19, including statements about our anticipated business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing ability to service or refinance our current indebtedness.
Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
- the 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.
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) | ||||||||
| June 30, 2021 | December 31, 2020 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 140,852 | $ | 102,018 | ||||
| Accounts receivable | 157,328 | 129,585 | ||||||
| Due from affiliates | 6,290 | 5,836 | ||||||
| Prepaid expenses and other current assets | 30,449 | 32,985 | ||||||
| Total current assets | 334,919 | 270,424 | ||||||
| PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS | ||||||||
| Property and equipment, net | 435,172 | 399,335 | ||||||
| Operating lease right-of-use assets | 593,574 | 483,661 | ||||||
| Total property, equipment and right-of-use assets | 1,028,746 | 882,996 | ||||||
| OTHER ASSETS | ||||||||
| Goodwill | 502,331 | 472,879 | ||||||
| Other intangible assets | 51,783 | 52,393 | ||||||
| Deferred financing costs | 2,386 | 1,767 | ||||||
| Investment in joint ventures | 41,375 | 34,528 | ||||||
| Deferred tax assets, net of current portion | 29,390 | 34,687 | ||||||
| Deposits and other | 41,268 | 36,983 | ||||||
| Total assets | $ | 2,032,198 | $ | 1,786,657 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable, accrued expenses and other | $ | 244,536 | 236,684 | |||||
| Due to affiliates | 22,596 | 14,010 | ||||||
| Deferred revenue | 31,947 | 39,257 | ||||||
| Current finance lease liability | – | 2,578 | ||||||
| Current operating lease liability | 71,399 | 65,794 | ||||||
| Current portion of notes payable | 10,789 | 39,791 | ||||||
| Total current liabilities | 381,267 | 398,114 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Long-term finance lease liability | – | 743 | ||||||
| Long-term operating lease liability | 567,674 | 463,096 | ||||||
| Notes payable, net of current portion | 749,079 | 612,913 | ||||||
| Other non-current liabilities | 34,899 | 53,488 | ||||||
| Total liabilities | 1,732,919 | 1,528,354 | ||||||
| EQUITY | ||||||||
| RadNet, Inc. stockholders’ equity: | ||||||||
| Common stock – $.0001 par value, 200,000,000 shares authorized; 52,678,030 and 51,640,537 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 5 | 5 | ||||||
| Additional paid-in-capital | 324,954 | 307,788 | ||||||
| Accumulated other comprehensive loss | (22,227 | ) | (24,051 | ) | ||||
| Accumulated deficit | (105,668 | ) | (117,999 | ) | ||||
| Total RadNet, Inc.’s stockholders’ equity | 197,064 | 165,743 | ||||||
| Noncontrolling interests | 102,215 | 92,560 | ||||||
| Total equity | 299,279 | 258,303 | ||||||
| Total liabilities and equity | $ | 2,032,198 | $ | 1,786,657 | ||||
| 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, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| REVENUE | ||||||||||||||||
| Service fee revenue | $ | 295,494 | $ | 155,698 | $ | 575,071 | $ | 404,031 | ||||||||
| Revenue under capitation arrangements | 38,424 | 34,868 | 74,166 | 68,099 | ||||||||||||
| Total service revenue | 333,918 | 190,566 | 649,237 | 472,130 | ||||||||||||
| Provider relief funding | 43 | 25,475 | 6,291 | 25,475 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Cost of operations, excluding depreciation and amortization | 283,571 | 194,217 | 565,851 | 461,635 | ||||||||||||
| Depreciation and amortization | 24,011 | 21,355 | 46,667 | 43,289 | ||||||||||||
| (Gain) loss on sale and disposal of equipment and other | (1,567 | ) | (569 | ) | (2,874 | ) | 202 | |||||||||
| Severance costs | 268 | 859 | 551 | 1,076 | ||||||||||||
| Total operating expenses | 306,283 | 215,862 | 610,195 | 506,202 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 27,678 | 179 | 45,333 | (8,597 | ) | |||||||||||
| OTHER INCOME AND EXPENSES | ||||||||||||||||
| Interest expense | 12,171 | 10,831 | 24,997 | 22,382 | ||||||||||||
| Equity in earnings of joint ventures | (3,121 | ) | (945 | ) | (5,406 | ) | (2,900 | ) | ||||||||
| Non-cash change in fair value of interest rate hedge | (35 | ) | 3,843 | (11,280 | ) | 3,843 | ||||||||||
| Debt restructuring and extinguishment expenses | 6,044 | – | 6,044 | – | ||||||||||||
| Other expenses (income) | 1,658 | (115 | ) | 1,867 | (108 | ) | ||||||||||
| Total other (income) expenses | 16,717 | 13,614 | 16,222 | 23,217 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 10,961 | (13,435 | ) | 29,111 | (31,814 | ) | ||||||||||
| (Provision for) benefit from income taxes | (2,874 | ) | 4,475 | (7,249 | ) | 8,856 | ||||||||||
| NET INCOME (LOSS) | 8,087 | (8,960 | ) | 21,862 | (22,958 | ) | ||||||||||
| Net income attributable to noncontrolling interests | 5,214 | 1,634 | 9,531 | 3,994 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 2,873 | $ | (10,594 | ) | $ | 12,331 | $ | (26,952 | ) | ||||||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.05 | $ | (0.21 | ) | $ | 0.24 | $ | (0.53 | ) | ||||||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.05 | $ | (0.21 | ) | $ | 0.23 | $ | (0.53 | ) | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||
| Basic | 52,238,709 | 50,672,219 | 52,004,653 | 50,483,274 | ||||||||||||
| Diluted | 53,133,091 | 50,672,219 | 52,890,561 | 50,483,274 | ||||||||||||
| RADNET, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS | ||||||||
| (IN THOUSANDS) | ||||||||
| (unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income (loss) | $ | 21,862 | $ | (22,958 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 46,667 | 43,289 | ||||||
| Amortization of operating lease assets | 36,834 | 34,094 | ||||||
| Equity in earnings of joint ventures | (5,406 | ) | (2,900 | ) | ||||
| Amortization deferred financing costs and loan discount | 1,959 | 2,163 | ||||||
| (Gain) loss on sale and disposal of equipment | (2,874 | ) | 202 | |||||
| Loss on extinguishment of debt | 1,496 | – | ||||||
| Amortization of cash flow hedge | 1,845 | 892 | ||||||
| Non-cash change in fair value of interest rate hedge | (11,280 | ) | 3,843 | |||||
| Stock-based compensation | 17,145 | 8,078 | ||||||
| Change in fair value of contingent consideration | 1,292 | (97 | ) | |||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | ||||||||
| Accounts receivable | (28,156 | ) | 29,018 | |||||
| Other current assets | 2,963 | 9,884 | ||||||
| Other assets | (4,997 | ) | (4,257 | ) | ||||
| Deferred taxes | 5,297 | (11,678 | ) | |||||
| Operating leases | (36,564 | ) | (30,182 | ) | ||||
| Deferred revenue | (7,147 | ) | 44,384 | |||||
| Accounts payable, accrued expenses and other | 17,765 | 27,690 | ||||||
| Net cash provided by operating activities | 58,701 | 131,465 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of imaging facilities and other acquisitions | (64,918 | ) | (4,188 | ) | ||||
| Purchase of property and equipment | (53,799 | ) | (64,193 | ) | ||||
| Proceeds from sale of equipment | 500 | 779 | ||||||
| Equity contributions in existing joint ventures | (1,441 | ) | – | |||||
| Net cash used in investing activities | (119,658 | ) | (67,602 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Principal payments on notes and leases payable | (3,304 | ) | (1,814 | ) | ||||
| Payments on Term Loan Debt | (613,279 | ) | (21,648 | ) | ||||
| Proceeds from issuance of new debt, net of issuing costs | 716,369 | – | ||||||
| Proceeds from payment protection plan | – | 4,023 | ||||||
| Proceeds from revolving credit facility | 128,300 | 250,900 | ||||||
| Payments on revolving credit facility | (128,300 | ) | (250,900 | ) | ||||
| Proceeds from issuance of common stock upon exercise of options | 26 | – | ||||||
| Net cash provided by (used in) financing activities | 99,812 | (19,439 | ) | |||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (21 | ) | (6 | ) | ||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 38,834 | 44,418 | ||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 102,018 | 40,165 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 140,852 | $ | 84,583 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Cash paid during the period for interest | $ | 13,774 | $ | 22,826 | ||||
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, | ||||||||||
| 2021 | 2020 | |||||||||
| Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders | $ | 2,873 | $ | (10,594 | ) | |||||
| Plus Interest Expense | 12,171 | 10,831 | ||||||||
| Plus Provision (Benefit) for Income Taxes | 2,874 | (4,475 | ) | |||||||
| Plus Depreciation and Amortization | 24,011 | 21,355 | ||||||||
| Plus Other Expenses (Income) | 1,658 | (115 | ) | |||||||
| Plus Severance Costs | 268 | 859 | ||||||||
| Plus (Gain) on Sale of Equipment | (1,567 | ) | (569 | ) | ||||||
| Plus Debt Restructuring and Loss on Extinguishment Expenses | 6,044 | – | ||||||||
| Plus Non-cash Change in Fair Value of Interest Rate Hedge | (35 | ) | 3,843 | |||||||
| Plus Other Adjustment to Joint Venture Investment | (565 | ) | – | |||||||
| Plus Non Cash Employee Stock Compensation | 8,897 | 1,456 | ||||||||
| Adjusted EBITDA(1) | $ | 56,629 | $ | 22,591 | ||||||
| Six Months Ended | ||||||||||
| June 30, | ||||||||||
| 2021 | 2020 | |||||||||
| Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders | $ | 12,331 | $ | (26,952 | ) | |||||
| Plus Interest Expense | 24,997 | 22,382 | ||||||||
| Plus Provision (Benefit) for Income Taxes | 7,249 | (8,856 | ) | |||||||
| Plus Depreciation and Amortization | 46,667 | 43,289 | ||||||||
| Plus Other Expenses (Income) | 1,867 | (108 | ) | |||||||
| Plus Severance Costs | 551 | 1,076 | ||||||||
| Plus (Gain) Loss on Sale of Equipment | (2,874 | ) | 202 | |||||||
| Plus Debt Restructuring and Loss on Extinguishment Expenses | 6,044 | – | ||||||||
| Plus Non-cash Change in Fair Value of Interest Rate Hedge | (11,280 | ) | 3,843 | |||||||
| Plus Other Adjustment to Joint Venture Investment | (565 | ) | – | |||||||
| Plus Non Cash Employee Stock Compensation | 17,145 | 8,078 | ||||||||
| Adjusted EBITDA(1) | $ | 102,132 | $ | 42,954 | ||||||
| PAYOR CLASS BREAKDOWN | |||||
| Second Quarter | |||||
| 2021 | |||||
| Commercial Insurance | 57.7 | % | |||
| Medicare | 21.4 | % | |||
| Capitation | 11.5 | % | |||
| Medicaid | 2.7 | % | |||
| Workers Compensation/Personal Injury | 3.2 | % | |||
| Other | 3.6 | % | |||
| Total | 100.0 | % | |||
| RADNET PAYMENTS BY MODALITY | |||||||||||||
| Second Quarter | Full Year | Full Year | Full Year | ||||||||||
| 2021 | 2020 | 2019 | 2018 | ||||||||||
| MRI | 36.7 | % | 35.4 | % | 35.8 | % | 35.2 | % | |||||
| CT | 17.6 | % | 17.6 | % | 16.9 | % | 16.5 | % | |||||
| PET/CT | 5.5 | % | 6.0 | % | 5.6 | % | 5.7 | % | |||||
| X-ray | 7.2 | % | 7.3 | % | 8.1 | % | 8.4 | % | |||||
| Ultrasound | 12.6 | % | 12.3 | % | 12.4 | % | 12.2 | % | |||||
| Mammography | 14.6 | % | 15.7 | % | 15.2 | % | 15.8 | % | |||||
| Nuclear Medicine | 1.1 | % | 1.0 | % | 1.0 | % | 1.1 | % | |||||
| Other | 4.6 | % | 4.7 | % | 4.9 | % | 5.1 | % | |||||
| 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.
| RADNET, INC. AND SUBSIDIARIES | ||||||||||||
| SCHEDULE OF ADJUSTED EARNINGS AND EARNINGS PER SHARE (3) | ||||||||||||
| (IN THOUSANDS EXCEPT SHARE DATA) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| June 30, | June 30, | |||||||||||
| 2021 | 2020 | |||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. | ||||||||||||
| COMMON STOCKHOLDERS | $ | 2,873 | $ | (10,594 | ) | |||||||
| Add COVID-19-related stock awards to front-line employees | 6,503 | – | ||||||||||
| Add non-cash revaluation of DeepHealth acquisiton shares | 1,093 | – | ||||||||||
| Add non-cash impact of cash flow hedges (i) | 1,210 | 4,735 | ||||||||||
| Add severance costs | 268 | 859 | ||||||||||
| Add debt restructuring and extinguishment expenses | 6,044 | – | ||||||||||
| Total adjustments – loss (gain) | 15,118 | 5,594 | ||||||||||
| Subtract tax impact of Adjustments (ii) | (3,754 | ) | (1,863 | ) | ||||||||
| Tax effected impact of adjustments | 11,364 | 3,731 | ||||||||||
| TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE | ||||||||||||
| TO RADNET, INC. COMMON SHAREHOLDERS | 11,364 | 3,731 | ||||||||||
| ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. | 14,237 | (6,863 | ) | |||||||||
| COMMON STOCKHOLDERS | ||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||
| Diluted | 53,133,091 | 50,672,219 | ||||||||||
| ADJUSTED DILUTED NET INCOME PER SHARE | ||||||||||||
| ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.27 | $ | (0.14 | ) | |||||||
| (i) Impact is the combination of (a) the gain in fair value of the hedges during the quarter of $35,000 in 2021 and | ||||||||||||
| loss of $3,843 in 2020 and (b) the amortization of the accumulation of the changes in fair value out of Other Comprehensive Income | ||||||||||||
| that existed prior to the hedges becoming ineffective of $1,245,000 in 2021 and $892,000 in 2020. | ||||||||||||
| (ii) Tax effected using 24.83% blended federal and state effective tax rate for 2021 and 33.31% for 2020. | ||||||||||||
Artificial Intelligence
Cayman Enterprise City Publishes Socio-Economic Impact Assessment by Economist and Leading Advisor on the Caribbean, Marla Dukharan
The Impact of Cayman Enterprise City’s Socio-Economic Development Project Nears USD $1 Billion
GRAND CAYMAN, Cayman Islands, May 16, 2024 /PRNewswire/ — Cayman Enterprise City (CEC) has released a Socio-Economic Impact Assessment by Marla Dukharan. The report illustrates that CEC is increasing its impact by supporting higher earnings for Caymanians and is driving a shift towards a knowledge-based economy by focusing on high productivity sectors. The release by Dukharan reads, “Caymanian resourcefulness and private sector-led innovation have been the driving force behind the islands’ outstanding socio-economic success. Cayman Enterprise City underpins the next generation of Cayman innovation and dynamism.”
With an economic impact of USD $130 million in 2023, contributing just under USD $1 billion to the local economic activity in 12 years since inception, “CEC is helping the nation to diversify economically, in terms of sectors and jobs, ensuring locals have economic and employment opportunities that match the nation’s progress,” the report reads.
The CEC socio-economic development project is now home to 352 Special Economic Zones Companies (SEZCos), many of which are globally recognised institutions led by top executives and industry experts. “CEC member companies are providing high-value employment with salaries exceeding those typically found outside of the special economic zone,” said Charlie Kirkconnell, Chief Executive Officer at CEC. “The CEC community is fully invested in Cayman and the report illustrates that the CEC socio-economic development project is making a very significant impact on Cayman’s economy and community.”
“As CEC continues to grow, it continues to create significant employment and entrepreneurial opportunities for Caymanians and we encourage anyone that might be interested in finding out how they might get involved, whether as a member of the community and/or as a volunteer in our Enterprise Cayman non-profit organisation (NPO).”
77% of Caymanian-held jobs at CEC member companies, are in sectors with high social returns and increasing global demand. “By putting skills first and prioritizing learning, CEC is enabling new industries to take root,” the release by Dukharan reads.
CEC, through its Enterprise Cayman NPO, is a first-mover in private sector-facilitated education and training in the Caribbean, making it a leading force to boost youth participation in the economy. By offering training in specialised skills, Enterprise Cayman is helping to close the gap in higher education and earnings for Caymanians. “Through Enterprise Cayman we’ve set out to strategically support meaningful employment and entrepreneurial opportunities for Caymanians, by providing internship and mentorship opportunities, by hosting skill-building and career focused training, and by providing invaluable networking and community engagement opportunities,” said Kirkconnell.
In 2023 individuals took advantage of 4,226 opportunities to participate in education, training, and career development events and, since launching entrepreneurial programming in 2021, Enterprise Cayman has worked with 41 new Cayman-born business ventures. “We’re helping to develop a local talent pool that meets the demand of Cayman’s growing digital innovation and technology sectors while, in parallel, offering exciting opportunities for individuals to launch new business ventures within an innovative business environment,” said Kirkconnell.
With CEC’s new campus and state-of-the-art facilities, Signal House, the project “holds the promise of deep, continued economic impact,” the report concludes.
To access CEC’s economic impact assessments and Enterprise Cayman’s annual reports please visit https://www.enterprisecayman.ky/reports. For more information on how to get involved and for upcoming programmes and events visit www.enterprisecayman.ky.
Website: www.caymanenterprisecity.com LinkedIn: @CaymanEnterpriseCityTwitter: @CEC_CaymanInstagram: @CaymanEnterpriseCityFacebook: @CaymanEnterpriseCityYouTube: @ceccayman
About Cayman Enterprise City
Cayman Enterprise City (CEC) is an award-winning development project which consists of three special economic zones (SEZs) focused on attracting knowledge-based and specialised-services businesses to set up a genuine physical presence in the Cayman Islands. The zones included within CEC are Cayman Tech City, Cayman Commodities & Derivatives Centre, and Cayman Maritime & Aviation City. With a dedicated Government Authority, licensing fee concessions and guaranteed fast-track processes, CEC enables international companies to quickly and efficiently establish a Cayman Islands office, which in turn enables them to generate active business income within a tax neutral environment.
About Enterprise Cayman
Enterprise Cayman is a non-profit organisation (NPO) powered by Cayman Enterprise City in partnership with Cayman Islands’ special economic zone companies (SEZCos). The organisation, which applies the Theory of Change (TOC) methodology, provides Caymanians and residents with access to high-quality learning experiences and opportunities to develop and launch new business ventures, to pursue careers within the technology and innovation sectors, and to join a dynamic network of industry professionals. Let’s grow the next generation of Caymanian innovators and entrepreneurs with Enterprise Cayman!
Logo: https://mma.prnewswire.com/media/1317764/2860789/Cayman_Enterprise_City_Logo.jpg
FOR MORE INFORMATION:Contact: Kaitlyn Elphinstone Email: [email protected]
View original content:https://www.prnewswire.co.uk/news-releases/cayman-enterprise-city-publishes-socio-economic-impact-assessment-by-economist-and-leading-advisor-on-the-caribbean-marla-dukharan-302148206.html
Artificial Intelligence
Strava Unveils New Chapter of Accelerated Product Development at Brand’s Flagship Event
The Company introduces increased product velocity, leveraging advancements in Artificial Intelligence, in service of its vision of a world connected through movement
LOS ANGELES, May 16, 2024 /PRNewswire/ — Strava, the leading digital community for active people with more than 125 million athletes, today showcased its latest initiatives and product developments at its annual event, Camp Strava. With the theme of Progress, Together company leaders announced how the platform will empower its global community to make progress in the way they explore, move, and connect on Strava.
“Strava is gaining momentum to realize our vision of a world connected through movement,” said Michael Martin, chief executive officer of Strava. “We are focused on two fundamental shifts to accelerate how we deliver value to 125 million people globally– building for women and leveraging Artificial Intelligence – which will unlock new community-and-partner-powered experiences across the platform.”
A New Era of Product VelocityStrava, with new leaders at the helm, is ushering in its next era of product velocity. The company listened closely to feedback from its global community and announced three of the most requested features coming to the platform by the end of the year.
The first of these updates, AI-enabled Leaderboard Integrity, will harness machine learning to automatically flag irregular, improbable, or impossible activities recorded to the platform. Trained by millions of activities, this feature allows all users on Strava to play fair and have more fun.
Additionally, the company announced a new Family Plan Subscription, the sister of the company’s Student Plan. With Family Plan, it’s easier to make a fitness commitment with your community by sharing an annual subscription with up to three other people – friends, family, or fitness family. Launching in select countries this summer, with plans to roll out globally by the end of the year, Strava’s newest annual subscription option offers the best value for groups (up to four), with a discount off the regular subscription price for each member.
Strava also implemented an updated design system, an initiative that is integral in driving a heightened pace of product innovation at the company. Through this work, Strava announced the launch of one of the company’s most requested features, Dark mode. Dark mode will improve the in-app experience for all users, reducing eye strain and improving accessibility while they record activity or scroll through the feed. Athletes can expect a rollout later this summer with options to keep their mobile settings always dark, always light, or match their device settings.
Company leaders highlighted several other features and updates to current products like Flyover, with its next iteration offering an overlay with activity stats and off-platform sharing capabilities. The overlay is available today for Strava subscribers and an off-platform sharing option will be released later this year.
Build for Her, Build for ManyStudies show that women of all ages participate in sports at a far lower rate than men, and overall, despite wanting to be active, find less time to dedicate to an active lifestyle. As the company continues on its mission to motivate people to live their best active lives, building for women on the platform will ultimately serve everyone in the Strava community. Several new features and initiatives were announced as a part of this strategic focus, which includes:
Night Heatmaps: Night Heatmaps show only activities between sundown and sunrise – so athletes can get an idea of which roads, trails, and paths are well-trafficked after hours. Since Night Heatmaps filter for after-hours routes, it can be a helpful tool for female athletes training before sunrise and after sunset.Quick Edit: For active women, having control over what is shared with the Strava community that cheers them on – like what time a run is logged – is important. Quick Edit makes it easier to make the most common edits – like activity name, and privacy settings so you can hide your start time, your map, or other workout stats.Strive for More®: The company announced a new phase of its Strive for More® initiative, created in 2022 to promote and support women in movement and sport. Today, Strava unveiled an official partnership with media company TOGETHXR to encourage more women to watch – and play – women’s sports. As part of the partnership, Strava will also donate $100,000 to the Alex Morgan Foundation, started by co-founder of TOGETHXR, Alex Morgan, to support their mission to help girls and women find confident paths forward in sports and life.Athlete IntelligenceToday, Strava announced the start of an accelerated product roadmap, outlining how Strava will implement the latest technological enhancements in AI and machine learning, to transform the athlete experience.
One key advancement to the platform includes the company’s latest development, Athlete Intelligence. Strava is introducing its beta AI-powered feature which turns each subscriber’s training data into an easily digestible summary that contextualizes their accomplishments and fitness goals. Unlike other AI-powered training services, Strava connects with thousands of devices, wearables, and fitness apps, so an athlete’s insights can consider their entire fitness story across multiple sports and modalities.
The features shared at Camp Strava will be released on a rolling basis through the end of the year. To view the full list of product releases and further details, visit www.press.strava.com.
For more information on Strava, to create a free account, or to start a free subscription trial visit www.strava.com.
About Strava Strava is the leading digital community for active people with more than 125 million athletes, in more than 190 countries. The platform offers a holistic view of your active lifestyle, no matter where you live, which sport you love and/or what device you use. Everyone belongs on Strava when they are pursuing an active life. Join the community, find motivation and discover new experiences with a Strava subscription.
Visit www.strava.com for more information and connect with Strava on Instagram, Twitter, Facebook, YouTube and LinkedIn.
Media Contact: [email protected]
Photo – https://mma.prnewswire.com/media/2413914/Darkmode_STRAVA.jpgPhoto – https://mma.prnewswire.com/media/2413915/Flyover_STRAVA.jpg Photo – https://mma.prnewswire.com/media/2413913/Athlete_Intelligence_STRAVA__INC.jpg
View original content:https://www.prnewswire.co.uk/news-releases/strava-unveils-new-chapter-of-accelerated-product-development-at-brands-flagship-event-302147068.html
Artificial Intelligence
Japan Data Center Market Investment to Reach $14.48 Billion by 2028 – Watch Out Exclusive Insight on Japan & Hong Kong Data Center Market – Arizton
CHICAGO, May 16, 2024 /PRNewswire/ — Arizton publishes the latest research report on the Japan data center market and Hong Kong data center market.
The Japan Data Center Market to Witness Investments of $14.48 Billion by 2029.
Get Insights on 107 Existing Data Centers and 41 Upcoming Facilities across Japan.
The data center market in Japan is experiencing the emergence of self-built hyperscale data center facilities by major operators such as Google, Microsoft, and Amazon Web Services (AWS). This development is expected to impact the colocation market in Japan. Since these hyperscale operators store workloads in their own data center facilities, it may reduce the source of revenue generation for colocation operators.
Japan is a well-established data center market in the APAC region. The country supports investments with its macroeconomic policies and other incentives for investors. The market is witnessing several investments from local and global data center operators, further expanding its presence. Tokyo and Osaka are Japan’s major destinations for data center development, accounting for over 90% of the existing data center facilities. The government announced the offer of subsidies in Hokkaido and Kyushu for data center development and decentralize data centers from Tokyo and Osaka.
Investment Opportunities
In October 2023, SoftBank and its subsidiary, IDC Frontier, announced the plan to develop a new data center facility in Tomakomai City, Hokkaido. The company invested around $420 million toward the project, for which it received subsidies worth $190 million from the Ministry of Economy, Trade, and Industry. In July 2023, Internet Initiative Japan (IIJ) launched its second data center building at the Shiroi data center campus in Chiba Prefecture, Greater Tokyo. Once fully built, the campus will house four data center buildings. Furthermore, the company is involved in a third expansion initiative in its Matsue City campus (which will likely go live in 2025).In June 2023, Digital Edge, in partnership with Hulic, a real estate developer, announced the start of the construction of a new data center facility, TY07, in Tokyo. The facility is expected to go online by 2025.In April 2024, GDS Services partnered with Gaw Capital to develop a new data center campus in Fuchu City, Tokyo. Both companies will jointly invest toward developing a new data center facility, with the first phase slated to go online by 2026.To Buy this Research Now, Click: https://www.arizton.com/market-reports/japan-data-center-market-investment-analysis
Existing Vs. Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)TokyoOsakaOther CitiesList of Upcoming Facilities in the Region (Area and Power Capacity)TokyoOsakaOther CitiesVendor Analysis
IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, NetApp, and Oracle.
Data Center Construction Contractors & Sub-Contractors: Arup, AECOM, Daiwa House Industry, Fuji Furukawa Engineering & Construction, Hibiya Engineering, ISG, Kajima Corporation, Keihanshin Building, Linesight, MARCAI DESIGN, Meiho Facility Works, Nikken Sekkei, NTT FACILITIES, Obayashi Corporation, SHINRYO Corporation, TAISEI Corporation.
Support Infrastructure Providers: 3M, ABB, Alfa Laval, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kawasaki Heavy Industries, KOHLSER-SDMO, Legrand, Mitsubishi Electric, Rittal, Rolls-Royce, Schneider Electric, STULZ, Siemens, Vertiv.
Data Center Investors: AirTrunk, Alibaba Cloud, Amazon Web Services, AT TOKYO, Colt Data Centre Services, Digital Edge, Equinix, Fujitsu, Goodman, Google, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, Microsoft, NTT Communications, SCSK Corporation (NETXDC), Telehouse, Tencent Cloud, TIS INTEC Group.
New Entrants: Ada Infrastructure, Edge Centres, CyrusOne, ESR, GDS Services, Keppel Data Centres, NEXTDC, Princeton Digital Group (PDG), SC Zeus Data Center, STACK Infrastructure, ST Telemedia Global Data Centres, Vantage Data Centers, Yondr.
The Hong Kong Data Center Market will Witness Investments of $4.80 Billion by 2029.
Get Insights on 54 Existing Data Centers and 12 Upcoming Facilities across Hong Kong.
The Hong Kong data center market is booming, driven by the increasing demand for digital services. The data center investments in Hong Kong over the next two to three years are expected to remain high due to the surge in demand and the significant boost due to the advancements in AI technologies. Investors are actively investing in this market.
Hong Kong is a mature and thriving market for data center development in the APAC region. Investors find it an attractive market owing to the high internet and social media usage levels, a robust business ecosystem, and excellent connectivity through both inland and submarine cables. Additionally, the deployment of 5G technology further enhances its appeal.
Hong Kong stands out globally for the incredibly high rates of cell phone and home broadband service usage. With around 300 licensed internet service providers, there is robust competition, providing data center operators with a wide range of choices.
Hong Kong is considered an attractive destination for businesses due to various reasons. Its proximity to mainland China and its import-export relations with major markets, such as China and the US, make it easier for businesses to operate. Additionally, the market has experienced significant growth in Foreign Direct Investment (FDI), ranking after countries like the UK, the US, and China.
Investment Opportunities
In December 2023, the company completed the core and shell construction of phase-1 of the MEGA IDC data center campus. The facility has already signed lease agreements with cloud service providers and international banks for its available space. The company plans to expand the campus through phase-2 during the forecast period.In March 2023, the company launched its seventh data center facility, MEGA Gateway, in Tsuen Wan. The facility is part of its connected MEGA campus.Goodman is among the major investors in the Hong Kong market, and it is continuously expanding its data center presence. In March 2024, the company announced the construction of the new Texaco data center facility in Tsuen Wan. The facility is a brownfield construction that involved the conversion of an industrial building into a data center facility. The facility is likely to go online by 2026.Over 60% Of Future Demand to Come from Cloud Service Providers
The Hong Kong data center market has the presence of on-premises data centers operated by educational institutions, the government, and financial services such as HSBC Bank. A significant decline in on-premises data centers will occur in the next three to five years owing to the increase in digitalizing initiatives across sectors and the strong growth in demand for colocation and cloud services. In addition, most existing service providers offer managed solutions to enterprise customers, which will likely grow in the market from 2024-2029.
The market has the presence of all global cloud operators, such as Amazon Web Services (AWS), Google, Microsoft, Alibaba Cloud, Huawei Cloud, and Tencent Cloud. This will propel the demand for wholesale colocation services through these service providers’ continuous expansion initiatives. The cloud segments will likely dominate capacity take-up over the next five years. In addition, the market will witness the entry of multiple global organizations to service customers through a local presence.
To Buy this Research Now, Click: https://www.arizton.com/market-reports/hong-kong-data-center-market-size-analysis
Existing VS. Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)Tseung Kwan OKwai ChungTsuen WanFanlingFo TanChai WanTai PoOther LocationList of Upcoming Facilities in the Region (Area and Power Capacity)Tseung Kwan OKwai ChungTsuen WanFanlingFo TanChai WanTai PoOther LocationVendor Analysis
IT Infrastructure Providers: Arista Network, Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Inspur, Lenovo, NetApp.
Data Center Construction Contractors & Sub-Contractors: Arup, AtkinsRéalis, Aurecon, BYME Engineering, Chung Hing Engineers Group, Cundall, DSCO Group, Gammon Construction, ISG, Studio One Design.
Support Infrastructure Providers: ABB, Airedale, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, KOHLER, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Schneider Electric, Siemens, STULZ, Sumber, Vertiv.
Data Center Investors: AirTrunk, BDx, CITIC Telcom International, China Mobile International (CMI), China Unicom, Digital Realty, Equinix, ESR, GDS Services, Global Switch, Goodman, iTech Towers Data Centre Services, NTT DATA, SUNeVision Holdings (iAdvantage), Telehouse, Towngas Telecom (TGT), Vantage Data Centers.
New Entrants: Angelo Gordon and Mapletree Investments
Japan & Hong Kong Data Center Market Segmentation
IT Infrastructure
Servers
Storage Systems
Network Infrastructure
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Rack Cabinets
Other Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression Systems
Physical Security
DCIM
Tier Standard
Tier I & Tier II
Tier III
Tier IV
Check Out Some of the Top Selling Research Reports:
Malaysia Data Center Market – Investment Analysis & Growth Opportunities 2024-2029https://www.arizton.com/market-reports/malaysia-data-center-market-size-analysis
Singapore Data Center Market – Investment Analysis & Growth Opportunities 2024-2029https://www.arizton.com/market-reports/singapore-data-center-market-size-analysis
Southeast Asia Data Center Construction Market – Industry Outlook & Forecast 2024-2029https://www.arizton.com/market-reports/southeast-asia-data-center-construction-market
Why Arizton?
100% Customer Satisfaction
24×7 availability – we are always there when you need us
200+ Fortune 500 Companies trust Arizton’s report
80% of our reports are exclusive and first in the industry
100% more data and analysis
1500+ reports published till date
About Us:
Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
Contact Us Call: +1-312-235-2040 +1 302 469 0707 Mail: [email protected] Contact Us: https://www.arizton.com/contact-us Blog: https://www.arizton.com/blog Website: https://www.arizton.com/
Logo: https://mma.prnewswire.com/media/818553/Arizton_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/japan-data-center-market-investment-to-reach-14-48-billion-by-2028–watch-out-exclusive-insight-on-japan–hong-kong-data-center-market—arizton-302147784.html
-
Artificial Intelligence7 days agoSanad Announces Strategic Sale Transaction with CFM Materials, Further Fostering Aviation Industry Collaborations
-
Artificial Intelligence6 days agoIdentity Threat Detection and Response (ITDR) Market worth $35.6 billion by 2029- Exclusive Report by MarketsandMarkets™
-
Artificial Intelligence7 days agoNorthern Data Group’s Peak Mining announces new partnership for 28MW of mining, powered by 100% renewable energy
-
Artificial Intelligence7 days ago
atNorth Shortlisted for Datacloud Global Awards, The Energy Awards and The Women in Green Business Awards
-
Artificial Intelligence6 days agoWIO Taps Gracenote to Revolutionize Television Broadcast Reporting
-
Artificial Intelligence7 days ago
Linnovate Partners Announces Close of USD 40 Million Funding Commitment Led by SeaTown
-
Artificial Intelligence7 days ago
CoreWeave Invests £1 Billion in UK; Opens New European Headquarters and Data Centres in London to Bring Cloud Infrastructure to Power the AI Revolution
-
Artificial Intelligence7 days agoProofID wins Judges’ Award for Global Ambition at the 2024 Northern Tech Awards
