Artificial Intelligence
RadNet Reports First Quarter Financial Results with Record First Quarter Revenue and Adjusted EBITDA(1) from Imaging Center Operations and Revises Upwards 2023 Financial Guidance Ranges for Revenue and Adjusted EBITDA(1)
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- Revenue increased 14.3% to $390.6 million in the first quarter of 2023 from $341.8 million in the first quarter of 2022; Excluding Revenue from our Artificial Intelligence (“AI”) reporting segment, Revenue from the Imaging Center segment in the first quarter of 2023 was $388.4 million, an increase of 13.9% from last year’s first quarter of $341.2 million
- Excluding losses from our AI reporting segment, Adjusted EBITDA(1) from Imaging Centers was $52.7 million in the first quarter of 2023 as compared with $41.7 million in the first quarter of 2022, an increase of 26.2%; Adjusted EBITDA(1), including losses from our AI reporting segment, was $48.2 million in the first quarter of 2023 as compared with $38.1 million in the first quarter of 2022, an increase of 26.3%
- Adjusting for unusual or one-time items impacting Net Loss in the quarter, Adjusted Loss Per Share(3) was $(0.08) for the first quarter of 2023; This compares with Adjusted Loss Per Share(3) of $(0.13) for the first quarter of 2022
- Aggregate procedural volumes increased 14.0% and same-center procedural volumes increased 9.3% compared with the first quarter of 2022
- RadNet revises full-year 2023 guidance levels to increase Revenue and Adjusted EBITDA(1) ranges
LOS ANGELES, May 09, 2023 (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 363 owned and operated outpatient imaging centers, today reported financial results for its first quarter of 2023.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “I am very pleased with the continuing strength of our core imaging center business. In our Imaging Center operating segment, Revenue increased almost 14% and Adjusted EBITDA(1) increased over 25% from last year’s first quarter. Our procedural volumes both on an aggregate and same-center basis demonstrated strong growth, in a quarter that is seasonally our weakest. Though the cost and availability of labor continues to be challenging, we are having more success in filling open positions and retaining talented team members.”
“Given the positive trends we are experiencing in our core business and the strong financial performance of the first quarter, we have elected to revise certain guidance levels upwards in anticipation of financial results that we believe will exceed our original expectations. We have increased 2023 guidance ranges for Revenue and Adjusted EBITDA(1),” added Dr. Berger.
Dr. Berger continued, “We are executing on all facets of our strategic plan. In response to the heavy demand we are experiencing in our core imaging center geographies, we are in process of growing capacity and access through the de novo strategy we embarked on last year. We also continue to grow our joint venture offerings through establishing new health system partnerships and the expansion of existing ones. Furthermore, we believe that market pressures from a challenging environment for labor, significant rising interest rates and a lack of availability of capital could accelerate acquisition opportunities in an industry that remains highly fragmented and that is mainly comprised of smaller operators who lack the economies of scale that we have achieved. We also continue to make strides in AI that should materially enhance the accuracy, efficiency and margin profile of our service offerings in the coming years. In the coming quarters, we will be expanding our roll-out of the Enhanced Breast Cancer Detection (EBCD) program we launched in November of last year, powered by our DeepHealth AI technologies, and we continue to innovate new features and capabilities of our AI engines for breast, lung and prostate imaging.”
Financial Results
For the first quarter of 2023, RadNet reported Revenue from its Imaging Center reporting segment of $388.4 million and Adjusted EBITDA(1), excluding Losses from AI reporting segment, of $52.7 million. Revenue increased $47.3 million (or 13.9%) and Adjusted EBITDA(1), excluding Losses from the AI reporting segment, increased $10.9 million (or 26.2%). Including our AI reporting segment Revenue of $2.1 million, Revenue was $390.6 million in the first quarter of 2023, an increase of 14.3% from $341.8 million in last year’s first quarter. Unadjusted for AI reporting segment Adjusted EBITDA(1) losses of $4.5 million in the first quarter of 2023 and $3.6 million in the first quarter of 2022, Adjusted EBITDA(1) for the first quarter of 2023 was $48.2 million as compared with $38.1 million in the first quarter of 2022.
Net Loss for the first quarter of 2023 was $21.0 million as compared with a Diluted Net Income of $3.0 million for the first quarter of 2022. Net Loss Per Share for the first quarter of 2023 was $(0.36), compared with a Diluted Net Income per share of $0.05 in the first quarter of 2022, based upon a weighted average number of diluted shares outstanding of 57.7 million shares in 2023 and 56.4 million shares in 2022.
There were a number of unusual or one-time items impacting the first quarter including: $4.1 million of non-cash loss from interest rate swaps; $959,000 expense related to leases for our de novo facilities under construction that have yet to open their operations; $1.6 million non-cash increase to contingent consideration related to completed acquisitions; $719,000 expense related to the re-valuation of holdbacks related to completed acquisitions; and $7.6 million of net pre-tax expenses related to our AI division. Adjusting for the above items, Adjusted Loss(3) from the Imaging Center reporting segment was $4.7 million and diluted Adjusted Loss Per Share(3) was $(0.08) during the first quarter of 2023. This compares with Adjusted Loss(3) from the Imaging Center reporting segment of $7.6 million and diluted Adjusted Loss Per Share(3) of $(0.13) during the first quarter of 2022.
Also affecting Net Income in the first quarter of 2023 were certain non-cash expenses and unusual items including: $12.2 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $134,000 of severance paid in connection with headcount reductions related to cost savings initiatives; and $746,000 of non-cash amortization of deferred financing costs and loan discounts related to financing fees paid as part of our existing credit facilities.
For the first quarter of 2023, as compared with the prior year’s first quarter, MRI volume increased 16.7%, CT volume increased 16.8% and PET/CT volume increased 20.9%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 14.0% over the prior year’s first quarter. On a same-center basis, including only those centers which were part of RadNet for both the first quarters of 2023 and 2022, MRI volume increased 11.9%, CT volume increased 10.6% and PET/CT volume increased 20.5%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 9.3% over the prior year’s same quarter.
2023 Revised Guidance
RadNet amends its previously announced guidance levels as follows:
Imaging Center Segment | ||
Original Guidance Range | Revised Guidance Range | |
Revenue | $1,525 million – $1,575 million | $1,550 million – $1,600 million |
Adjusted EBITDA(1) | $220 million – $230 million | $225 million – $235 million |
Capital Expenditures (a) | $105 million – $115 million | $110 million – $120 million |
Cash Paid for Interest (c) | $35 million – $40 million | $45 million – $50 million |
Free Cash Flow Generation (b)(2) | $70 million – $80 million | $65 million – $70 million |
Artificial Intelligence Segment | ||
Original Guidance Range | Revised Guidance Range | |
Revenue | $16 million – $18 million | Unchanged |
Adjusted EBITDA(1) (Loss) | $(9) million – $(11) million | Unchanged |
(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) from Imaging Center Segment less Capital Expenditures and Cash Paid for Interest.
(c) Net of payments to and from counterparties on interest rate swaps.
Dr. Berger highlighted, “We have increased our guidance ranges for Revenue and Adjusted EBITDA(1) to reflect the first quarter’s strong financial results as compared with our original budget. Though we remain vigilant about the economic environment, supply chain disruptions, inflation and the possibility of further variants of COVID-19, we have opportunities to expand our operations in all of our markets both organically and through new acquisitions and joint ventures. We also are increasing our guidance levels for cash interest expense and capital expenditures to account for both the rising cost of interest on that portion of our debt which is not subject to our interest rate swaps and to fund the completion of certain of our de novo facilities scheduled to open during the remainder of 2023 and the first half of 2024.”
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 first quarter 2023 results on Tuesday, May 9th, 2023 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Tuesday, May 9, 2023
Time: 10:30 a.m. Eastern Time
Dial In-Number: 844-826-3035
International Dial-In Number: 412-317-5195
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 https://viavid.webcasts.com/starthere.jsp?ei=1612864&tp_key=c9dd50c578 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 10178605.
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 363 owned and/or operated outpatient imaging centers. RadNet’s markets include California, Maryland, Delaware, New Jersey, New York, Florida and Arizona. In addition, RadNet provides radiology information technology and artificial intelligence 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 technologists, RadNet has a total of over 9,000 employees. For more information, visit http://www.radnet.com.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are expressions of our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, and anticipated future conditions, events and trends. Forward-looking statements can generally be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements in this press release include, among others, statements we make regarding response to and the expected future impacts of COVID-19, including statements about our anticipated business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing ability to service or refinance our current indebtedness.
Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
- the impact of a pandemic, significant deterioration in the broader economy, severe acts of nature or other exogenous factors on our business, suppliers, payors, customers, referral sources, partners, patients and employees;
- 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;
- our ability to acquire, develop, implement and monetize artificial intelligence algorithms and applications;
- 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) | ||||||
March 31, 2023 | December 31, 2022 | |||||
(unaudited) | ||||||
ASSETS | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | $ | 90,844 | $ | 127,834 | ||
Accounts receivable | 176,354 | 166,357 | ||||
Due from affiliates | 20,387 | 18,971 | ||||
Prepaid expenses and other current assets | 55,100 | 54,022 | ||||
Total current assets | 342,685 | 367,184 | ||||
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS | ||||||
Property and equipment, net | 545,492 | 565,961 | ||||
Operating lease right-of-use assets | 623,309 | 603,524 | ||||
Total property, equipment and right-of-use assets | 1,168,801 | 1,169,485 | ||||
OTHER ASSETS | ||||||
Goodwill | 687,085 | 677,665 | ||||
Other intangible assets | 103,003 | 106,228 | ||||
Deferred financing costs | 2,122 | 2,280 | ||||
Investment in joint ventures | 59,321 | 57,893 | ||||
Deposits and other | 51,052 | 53,172 | ||||
Total assets | $ | 2,414,069 | $ | 2,433,907 | ||
LIABILITIES AND EQUITY | ||||||
CURRENT LIABILITIES | ||||||
Accounts payable, accrued expenses and other | $ | 296,727 | 369,595 | |||
Due to affiliates | 31,548 | 23,100 | ||||
Deferred revenue | 4,343 | 4,021 | ||||
Current operating lease liability | 58,590 | 57,607 | ||||
Current portion of notes payable | 15,935 | 12,400 | ||||
Total current liabilities | 407,143 | 466,723 | ||||
LONG-TERM LIABILITIES | ||||||
Long-term operating lease liability | 623,538 | 604,117 | ||||
Notes payable, net of current portion | 852,354 | 839,344 | ||||
Deferred tax liability, net | 10,410 | 9,256 | ||||
Other non-current liabilities | 27,523 | 23,015 | ||||
Total liabilities | 1,920,968 | 1,942,455 | ||||
EQUITY | ||||||
RadNet, Inc. stockholders’ equity: | ||||||
Common stock – $0.0001 par value, 200,000,000 shares authorized; 58,270,290 and 57,723,125 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 6 | 6 | ||||
Additional paid-in-capital | 448,522 | 436,288 | ||||
Accumulated other comprehensive loss | (16,978 | ) | (20,677 | ) | ||
Accumulated deficit | (103,628 | ) | (82,622 | ) | ||
Total RadNet, Inc.’s stockholders’ equity | 327,922 | 332,995 | ||||
Noncontrolling interests | 165,179 | 158,457 | ||||
Total equity | 493,101 | 491,452 | ||||
Total liabilities and equity | $ | 2,414,069 | $ | 2,433,907 | ||
RADNET, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) | |||||||
(unaudited) | |||||||
Three Months Ended March 31, | |||||||
2023 | 2022 | ||||||
REVENUE | |||||||
Service fee revenue | $ | 352,420 | $ | 303,276 | |||
Revenue under capitation arrangements | 38,144 | 38,491 | |||||
Total service revenue | 390,564 | 341,767 | |||||
OPERATING EXPENSES | |||||||
Cost of operations, excluding depreciation and amortization | 351,865 | 315,039 | |||||
Depreciation and amortization | 31,315 | 27,118 | |||||
Loss on sale and disposal of equipment and other | 579 | 1,128 | |||||
Severance costs | 134 | 201 | |||||
Total operating expenses | 383,893 | 343,486 | |||||
INCOME (LOSS) FROM OPERATIONS | 6,671 | (1,719 | ) | ||||
OTHER INCOME AND EXPENSES | |||||||
Interest expense | 15,722 | 11,593 | |||||
Equity in earnings of joint ventures | (1,428 | ) | (2,517 | ) | |||
Non-cash change in fair value of interest rate hedge | 4,093 | (20,819 | ) | ||||
Other expenses | 1,432 | 165 | |||||
Total other expense (income) | 19,819 | (11,578 | ) | ||||
(LOSS) INCOME BEFORE INCOME TAXES | (13,148 | ) | 9,859 | ||||
Provision for income taxes | (1,135 | ) | (1,496 | ) | |||
NET (LOSS) INCOME | (14,283 | ) | 8,363 | ||||
Net income attributable to noncontrolling interests | 6,722 | 5,350 | |||||
NET (LOSS) INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | (21,005 | ) | $ | 3,013 | ||
BASIC NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | (0.36 | ) | $ | 0.05 | ||
DILUTED NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | (0.36 | ) | $ | 0.05 | ||
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||
Basic | 57,701,439 | 55,303,007 | |||||
Diluted | 57,701,439 | 56,362,193 | |||||
RADNET, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS | |||||||
(IN THOUSANDS) | |||||||
(unaudited) | |||||||
Three Months Ended March 31, | |||||||
2023 | 2022 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net (loss) income | $ | (14,283 | ) | $ | 8,363 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 31,315 | 27,118 | |||||
Amortization of operating lease assets | 15,699 | 16,802 | |||||
Equity in earnings of joint ventures, net of dividends | (1,835 | ) | (2,517 | ) | |||
Amortization deferred financing costs and loan discount | 746 | 648 | |||||
Loss on sale and disposal of equipment | 579 | 1,128 | |||||
Amortization of cash flow hedge | 922 | 923 | |||||
Non-cash change in fair value of interest rate hedge | 4,093 | (20,819 | ) | ||||
Stock-based compensation | 12,185 | 11,102 | |||||
Change in fair value of contingent consideration | 2,335 | (501 | ) | ||||
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | |||||||
Accounts receivable | (9,997 | ) | (23,904 | ) | |||
Other current assets | (1,691 | ) | (4,065 | ) | |||
Other assets | (2,726 | ) | (1,417 | ) | |||
Deferred taxes | 942 | 1,387 | |||||
Operating leases | (15,080 | ) | (15,859 | ) | |||
Deferred revenue | 335 | (4,519 | ) | ||||
Accounts payable, accrued expenses and other | 9,077 | 7,031 | |||||
Net cash provided by operating activities | 32,616 | 901 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of imaging facilities and other acquisitions | (9,644 | ) | (25,123 | ) | |||
Purchase of property and equipment and other | (55,915 | ) | (36,558 | ) | |||
Proceeds from sale of equipment | 3 | 117 | |||||
Net cash used in investing activities | (65,556 | ) | (61,564 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Principal payments on notes and leases payable | (184 | ) | – | ||||
Payments on Term Loan Debt | (3,688 | ) | (3,313 | ) | |||
Proceeds from issuance of common stock upon exercise of options | 51 | – | |||||
Net cash used in financing activities | (3,821 | ) | (3,313 | ) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (229 | ) | 83 | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (36,990 | ) | (63,893 | ) | |||
CASH AND CASH EQUIVALENTS, beginning of period | 127,834 | 134,606 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 90,844 | $ | 70,713 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
Cash paid during the period for interest | $ | 21,471 | $ | 7,448 | |||
Cash paid during the period for income taxes | $ | 40 | $ | 34 | |||
RADNET, INC. AND SUBSIDIARIES | |||||||
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA | |||||||
(IN THOUSANDS) | |||||||
Three Months Ended March 31, | |||||||
2023 | 2022 | ||||||
Net (loss) income attributable to RadNet, Inc. common stockholders | $ | (21,005 | ) | $ | 3,013 | ||
Income taxes | 1,135 | 1,496 | |||||
Interest expense | 15,722 | 11,593 | |||||
Severance costs | 134 | 201 | |||||
Depreciation and amortization | 31,315 | 27,118 | |||||
Non-cash employee stock-based compensation | 12,185 | 11,102 | |||||
Loss on sale and disposal of equipment and other | 579 | 1,128 | |||||
Non-cash change in fair value of interest rate hedge | 4,093 | (20,819 | ) | ||||
Other expenses | 1,432 | 165 | |||||
Legal settlements | — | 2,197 | |||||
Contingent consideration | 1,616 | — | |||||
Non operational rent expenses | 959 | 938 | |||||
Adjusted EBITDA Including Losses from AI Segment and Provider relief funding | $ | 48,165 | $ | 38,132 | |||
EBITDA Losses from AI Segment | 4,496 | 3,585 | |||||
Adjusted EBITDA excluding Losses from AI Segment and Provider relief funding | $ | 52,661 | $ | 41,717 | |||
PAYOR CLASS BREAKDOWN | ||||
First Quarter | ||||
2023 | ||||
Commercial Insurance | 58.1 | % | ||
Medicare | 22.2 | % | ||
Capitation | 9.8 | % | ||
Medicaid | 2.6 | % | ||
Workers Compensation/Personal Injury | 3.2 | % | ||
Other | 4.1 | % | ||
Total | 100.0 | % | ||
RADNET PAYMENTS BY MODALITY | ||||||||||||
First Quarter | Full Year | Full Year | Full Year | |||||||||
2023 | 2022 | 2021 | 2020 | |||||||||
MRI | 36.4 | % | 36.8 | % | 36.0 | % | 35.4 | % | ||||
CT | 17.2 | % | 17.5 | % | 17.2 | % | 17.6 | % | ||||
PET/CT | 5.8 | % | 5.8 | % | 5.5 | % | 6.0 | % | ||||
X-ray | 6.4 | % | 6.7 | % | 3.9 | % | 7.3 | % | ||||
Ultrasound | 12.8 | % | 12.6 | % | 12.7 | % | 12.3 | % | ||||
Mammography | 16.0 | % | 15.3 | % | 16.1 | % | 15.7 | % | ||||
Nuclear Medicine | 0.8 | % | 0.9 | % | 1.0 | % | 1.0 | % | ||||
Other | 4.6 | % | 4.5 | % | 4.6 | % | 4.7 | % | ||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
PROCEDURES BY MODALITY* | |||||||
First Quarter | First Quarter | ||||||
2023 | 2022 | ||||||
MRI | 369,556 | 316,784 | |||||
CT | 229,379 | 196,461 | |||||
PET/CT | 14,126 | 11,683 | |||||
Nuclear Medicine | 9,258 | 9,457 | |||||
Ultrasound | 608,986 | 525,569 | |||||
Mammography | 455,479 | 410,807 | |||||
X-ray and Other | 817,851 | 726,424 | |||||
Total | 2,504,635 | 2,197,185 | |||||
* Volumes include wholly owned and joint venture centers. | |||||||
RADNET, INC. AND SUBSIDIARIES | |||||||||||
SCHEDULE OF ADJUSTED EARNINGS AND EARNINGS PER SHARE (3) | |||||||||||
(IN THOUSANDS EXCEPT SHARE DATA) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO RADNET, INC. | |||||||||||
COMMON STOCKHOLDERS | $ | (21,005 | ) | $ | 3,013 | ||||||
Subtract non-cash change in fair value of interest rate hedges (i) | 4,093 | (20,819 | ) | ||||||||
Legal Settlement | – | 2,197 | |||||||||
Non-operational rent expenses (iii) | 959 | 938 | |||||||||
Contingent consideration | 1,616 | – | |||||||||
Holdback Re-valuation Adjustments – Quantib and Heart & Lung Health | 719 | – | |||||||||
AI Segment Losses (iv) | 7,593 | 5,113 | |||||||||
Total adjustments – loss (gain) | 14,980 | (12,571 | ) | ||||||||
Subtract tax impact of Adjustments (ii) | 1,293 | 1,980 | |||||||||
Tax effected impact of adjustments | 16,273 | (10,591 | ) | ||||||||
TOTAL ADJUSTMENT TO NET INCOME (LOSS) ATTRIBUTABLE | |||||||||||
TO RADNET, INC. COMMON SHAREHOLDERS | 16,273 | (10,591 | ) | ||||||||
ADJUSTED NET LOSS ATTRIBUTABLE TO RADNET, INC. | (4,732 | ) | (7,578 | ) | |||||||
COMMON STOCKHOLDERS | |||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||
Diluted | 57,701,439 | 56,362,193 | |||||||||
ADJUSTED DILUTED NET LOSS PER SHARE | |||||||||||
ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | (0.08 | ) | $ | (0.13 | ) | |||||
(i) Impact from the change in fair value of the hedges during the quarter. Excludes the amortization of the accumulation of the changes in fair value out of Other Comprehensive Income that existed prior to the hedges becoming ineffective. | |||||||||||
(ii) Tax effected using 15.8% and -8.63% blended federal and state effective tax rate for the first quarter of 2022 and 2023, respectively. | |||||||||||
(iii) Represents rent expense associated with de novo sites under construction prior to them becoming operational. | |||||||||||
(iv) Representents losses before income taxes from Artificial Intelligence reporting segment. | |||||||||||
Footnotes
(1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and adjusted for losses or gains on the sale of equipment, other income or loss, debt extinguishments and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or extraordinary and one-time events taken place during the period.
Adjusted EBITDA is reconciled to its nearest comparable GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance, and is a measure of leverage capacity and ability to service debt. Adjusted EBITDA should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
(2) As noted above, the Company defines Free Cash Flow as Adjusted EBITDA less total Capital Expenditures (whether completed with cash or financed) and Cash Interest paid. Free Cash Flow is a non-GAAP financial measure. The Company uses Free Cash Flow because the Company believes it provides useful information for investors and management because it measures our capacity to generate cash from our operating activities. Free Cash Flow does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of Free Cash Flow may differ from definitions used by other companies.
Free Cash Flow should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
(3) The Company defines Adjusted Earnings (Loss) Per Share as net income or loss attributable to RadNet, Inc. common stockholders and excludes losses or gains on the disposal of equipment, loss on debt extinguishments, bargain purchase gains, severance costs, loss on impairment, loss or gain on swap valuation, gain on extinguishment of debt, unusual or non-recurring entries that impact the Company’s tax provision and any other non-recurring or unusual transactions recorded during the period.
Adjusted Earnings (Loss) Per Share is reconciled to its nearest comparable GAAP financial measure. Adjusted Earnings (Loss) Per Share is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance. Adjusted Earnings Per Share should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted Earnings Per Share should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted Earnings Per Share is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
Artificial Intelligence
LG STRENGTHENS EUROPEAN PRESENCE WITH ITS KITCHEN SOLUTIONS SHOWCASE AT MDW 2024
Featuring Advanced AI Technologies and Sleek Design, Company’s Expanded Lineup of Built-in Appliances Brings Outstanding Convenience and Style to the Kitchen
SEOUL, South Korea, April 18, 2024 /PRNewswire/ — LG Electronics (LG) is unveiling its latest built-in kitchen appliances at Milan Design Week (MDW) 2024, taking place in Milan, Italy, from April 16-21. At the center of LG’s Milan showcase are the brand-new Signature Kitchen Suite built-in oven, free zone induction hob, and downdraft hood. Boasting innovative, premium design and highly-convenient features, the company’s refined built-in solutions bring exceptional ease-of-use and effortless elegance to the kitchen.
Signature Kitchen Suite Built-in Oven with Advanced Cooking Technologies
Debuting at MDW 2024 and designed with European consumers in mind, the Signature Kitchen Suite 60-centimeter (24-inch) built-in oven offers a variety of cutting-edge features and AI technologies to elevate the culinary experience. Equipped with Gourmet AI™️, the oven can identify what the user is cooking and automatically select the appropriate cooking mode from 130 recipes. Gourmet AI also enables ‘browning’ control for foods such as pizza and steak, actively keeping tabs on the cooking process and notifying users via the ThinQ™️ app as soon as their food is done. Thanks to video-recognition, LG’s intelligent oven can suggest the optimal settings for the dish being prepared, while real-time video monitoring and time-lapse recording make it easy to check on the progress of one’s meal using the ThinQ app.
Employing enhanced ProBake powered by inverter technology, the new oven delivers uniform heat and fast, efficient cooking with an A++ energy rating. LG’s innovative technology rotates the convection fan back and forth to ensure shorter preheating times, even heating, and crispier results when using the oven’s Air Fry mode. The company’s unique InstaView™️ technology further enhances user convenience, making it possible to see inside simply by knocking twice on the oven door.
Free Zone Induction Hob for Convenient and Flexible Cooking
The Signature Kitchen Suite’s 90-centimeter (36-inch) free zone induction hob presents next-level flexibility and ease-of-use, allowing users to place any size and type of cookware – such as Paella pans and moka pots – anywhere on its cooking surface.* The new appliance can detect and track the position of cookware, eliminating the need to manually cancel and reapply settings when moving a saucepan or skillet from one part of the cooking surface to another. What’s more, the AI technology embedded in the hob can detect the temperature of cookware and automatically lower the heat when necessary, helping to minimize spills and splatter when boiling water or preparing soups and sauces.
Expanded Built-in Lineups for Diverse Kitchen Lifestyles
LG is further bolstering its built-in product lineup with the introduction of the new Signature Kitchen Suite downdraft hood. Made to integrate seamlessly into islands and countertops, the 90-centimeter (36-inch) hood offers a sleek, sophisticated look with its chic black glass and modern frame design. It also provides powerful ventilation, effectively extracting steam and odors for a more pleasant cooking experience.
Additionally, LG has expanded its portfolio of built-in appliances for the European market. Along with new products, such as an 80-centimeter (30-inch) induction hob and built-in combi refrigerators and microwave ovens, the company now provides a wider range of options within its oven lineups – from more product variation to a greater choice of colors and sizes. Among the new models are the Signature Kitchen Suite 122 centimeter (48 inch)-wide French-door refrigerator and stunning appliances from the Transitional lineup, featuring slim handles and satin stainless steel exteriors with a velvety matte finish. To help customers create a curated kitchen aesthetic, the company offers an array of new finishes for its premium built-in products, with black stainless steel and stainless steel joining the previously-introduced black glass finish.
“We are thrilled to showcase our latest built-in innovations at this year’s Milan Design Week, demonstrating our commitment to leading new design trends and meeting the diverse needs of European customers,” said Lyu Jae-cheol, president of LG Electronics Home Appliance & Air Solution Company. “LG will continue to strengthen its presence in Europe through an expanded range of built-in appliances delivering style, performance and convenience in the kitchen.”
Visitors to MDW 2024 in Milan from April 16-21 can experience LG’s latest built-in lineups at the LG booth at Milan Fairgrounds.
* Cookware recognition may vary depending on the size or number of items placed on the surface.
About LG Electronics Home Appliance & Air Solution Company
The LG Home Appliance & Air Solution Company is a global leader in home appliances, air solutions as well as smart home solutions featuring LG ThinQ. The company is creating various solutions with its industry leading core technologies and is committed to making life better and sustainable for consumers and the planet by developing thoughtfully designed kitchen appliances, living appliances, HVAC and air purification solutions. Together, these products deliver enhanced convenience, superb performance, efficient operation and sustainable lifestyle solutions. For more news on LG, visit www.LGnewsroom.com.
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Artificial Intelligence
DataTracks Celebrates Completion of 19 Years
SINGAPORE, April 18, 2024 /PRNewswire/ — DataTracks, a provider of cloud-based software to automate/generate compliance reports for filing with financial/security regulators to more than 28,000 business enterprises in 26 countries, celebrates the completion of 19 years of service and innovation. Founded with a vision to make regulatory compliance “accurate, reliable, timely, and easy”, DataTracks has grown into a leading name in the industry, worldwide with cutting edge software that incorporates “artificial intelligence” aided features to reduce “time to prepare” and improve “accuracy”.
Decades of Dedication and Expertise
Over nearly two decades, DataTracks has achieved significant growth, with its software delivering more than 400,000 reports, showcasing its pivotal role in regulatory reporting. The software and service address regulations across diverse jurisdictions, including SEC in the USA, HMRC and FCA in the UK, Revenue in Ireland, CIPC in South Africa, ACRA in Singapore, MCA in India, SSM in Malaysia and ESMA, EBA, and EIOPA in Europe.
DataTracks distinguishes itself in the industry
(a) with its global footprint (preferred by business enterprises whose regulatory obligations are spread across multiple jurisdictions)
(b) with its state-of-the art software that incorporates “AI/ML” features and
(c) with its credentials for information security (including ISO 9001:2015 and ISO 27001:2013 certifications)
Addressing the employees and spouses in a town hall meeting to celebrate the event, Vinod P John, President of DataTracks said: “We are happy to start our 20th year in the industry. I have to thank the 28,000 clients who trust us and the several hundred employees who developed our software and who helped customers (and our internal team) prepare compliance reports for reaching this milestone. We’ve always believed in leveraging technology to make regulatory compliance as easy, quick, timely, and accurate as possible for our clients. Our continuous investment in AI and machine learning is a testament to this belief, and it’s what keeps us at the forefront of the industry.”
Looking ahead, DataTracks is ready to address upcoming mandates such as the DATA Act and FTA in the US as well as the MBRS/XBRL mandate by SSM in Malaysia.
About DataTracks
DataTracks is a Singapore-based globally renowned leader in providing cloud-based regulatory compliance software for self-use and “black box services” using the same software, catering to 28,000 clients across 26 countries. In 19 years DataTracks has helped its client enterprises prepare more than 400,000 compliance reports for filing with financial/security regulators in several jurisdictions. Financial analysts have rated the quality of reports generated using DataTracks as top of industry for quality; significantly above that of several of its competitors. For further information, visit www.datatracks.com.
For Business Enquiries: Email: [email protected]; Phone: Singapore: +6531582850, US: +1(646)9048324, UK: +44(0)2036088035
Media Contact: [email protected]
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Artificial Intelligence
SAS advances industry solutions with packaged AI models
Tailored, lightweight AI models facilitate rapid deployment with low overhead
LAS VEGAS, April 17, 2024 /PRNewswire/ — SAS INNOVATE — Today at SAS Innovate, SAS – a pioneer in data and AI solutions – unveiled a game-changing approach for organizations to tackle business challenges head-on. Introducing lightweight, industry-specific AI models for individual license, SAS is equipping organizations with readily deployable AI technology to productionize real-world use cases with unparalleled efficiency.
AI software provider SAS is uniquely positioned to flex its decades of expertise in applying scalable and trustworthy AI models for prominent global financial, health care, and manufacturing brands, as well as government institutions.
“SAS is evolving its portfolio to meet wider user needs and capture market share with innovative new offerings,” said Chandana Gopal, Research Director, Future of Intelligence, IDC. “An area that is ripe for SAS is productizing models built on SAS’ core assets, talent and IP from its wealth of experience working with customers to solve industry problems.”
In today’s market, the consumption of models is primarily focused on large language models (LLMs) for generative AI. In reality, LLMs are a very small part of the modeling needs of real-world production deployments of AI and decision making for businesses. With the new offering, SAS is moving beyond LLMs and delivering industry-proven deterministic AI models for industries that span use cases such as fraud detection, supply chain optimization, entity management, document conversation and health care payment integrity and more.
Unlike traditional AI implementations that can be cumbersome and time-consuming, SAS’ industry-specific models are engineered for quick integration, enabling organizations to operationalize trustworthy AI technology and accelerate the realization of tangible benefits and trusted results.
Expanding market footprintOrganizations are facing pressure to compete effectively and are looking to AI to gain an edge. At the same time, staffing data science teams has never been more challenging due to AI skills shortages. Consequently, businesses are demanding agility in using AI to solve problems and require flexible AI solutions to quickly drive business outcomes. SAS’ easy-to-use, yet powerful models tuned for the enterprise enable organizations to benefit from a half-century of SAS’ leadership across industries.
Delivering industry models as packaged offerings is one outcome of SAS’ commitment of $1 billion to AI-powered industry solutions. As outlined in the May 2023 announcement, the investment in AI builds on SAS’ decades long focus on providing packaged solutions to address industry challenges in banking, government, health care and more.
“Models are the perfect complement to our existing solutions and SAS Viya platform offerings and cater to diverse business needs across various audiences, ensuring that innovation reaches every corner of our ecosystem,” said Udo Sglavo, Vice President for AI and Analytics, SAS. “By tailoring our approach to understanding specific industry needs, our frameworks empower businesses to flourish in their distinctive environments.”
Bringing AI to the massesSAS is democratizing AI by offering out-of-the-box, lightweight AI models – making AI accessible regardless of skill set – starting with an AI assistant for warehouse space optimization. Leveraging technology like large language models, these assistants cater to nontechnical users, translating interactions into optimized workflows seamlessly and aiding in faster planning decisions.
“SAS Models provide organizations with flexible, timely and accessible AI that aligns with industry challenges,” said Sglavo. “Whether you’re embarking on your AI journey or seeking to accelerate the expansion of AI across your enterprise, SAS offers unparalleled depth and breadth in addressing your business’s unique needs.”
The first SAS Models are expected to be generally available later this year. Learn more about SAS Applied AI and Modeling here: https://blogs.sas.com/content/tag/applied-ai-modeling/.
Today’s announcement was made at SAS Innovate, the data and AI experience for business leaders, technical users and SAS Partners. Keep up with the latest news from SAS by following @SASsoftwareNews on X/Twitter.
About SASSAS is a global leader in data and AI. With SAS software and industry-specific solutions, organizations transform data into trusted decisions. SAS gives you THE POWER TO KNOW®.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2024 SAS Institute Inc. All rights reserved.
Editorial Contact:Jennifer [email protected] 202-210-4180 sas.com/news
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