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10 May, 2021

RadNet Reports First Quarter Financial Results, Including Record First Quarter Revenue, Adjusted EBITDA(1) and Net Income, and Revises Upwards 2021 Financial Guidance Ranges

  • Revenue increased 12.0% to $315.3 million in the first quarter of 2021 from $281.6 million in the first quarter of 2020
  • Adjusted EBITDA(1) increased 123.4% to $45.5 million in the first quarter of 2021 from $20.4 million in the first quarter of 2020; Adjusting for $6.2 million of grants received under the CARES Act Provider Relief Fund during the quarter, Adjusted EBITDA(1) was $39.3 million during the first quarter of 2021 (an increase of 92.8% from the first quarter of 2020)
  • Diluted Net Income per share was $0.18 in the first quarter of 2021 as compared with diluted net loss per share of $(0.33) from the prior year’s first quarter; Adjusting for extraordinary items impacting Net Income in the quarter, including grants under the Cares Act, the financial impact of our cash flow hedge and one-time COVID-19-related retention bonuses paid to team members and physicians, diluted Adjusted Earnings Per Share(3) was $0.04 during the first quarter of 2021
  • Aggregate procedural volumes increased 8.4%; Same-center procedural volumes increased 5.0% compared to the first quarter of 2020
  • Subsequent to quarter end, RadNet received FDA clearance for its DeepHealth AI mammography triage software and completed a refinancing transaction of its senior credit facilities  
  • RadNet revises full-year 2021 guidance levels to increase Revenue, Adjusted EBITDA(1) and Free Cash Flow ranges

LOS ANGELES, May 10, 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 346 owned and/or operated outpatient imaging centers, today reported financial results for its first quarter of 2021.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “Despite some disruptive winter weather conditions in February on the east coast, we produced record first quarter results. Our Revenue, Adjusted EBITDA(1) and Net Income performance was stronger than any other first quarter in our company’s history. Revenue increased 12% and Adjusted EBITDA(1) more than doubled from last year’s first quarter. Furthermore, even after adjusting for the impact of a variety of extraordinary items in the quarter such as stimulus money we received, a substantial valuation gain on our interest rate swaps and one-time COVID-19-related retention bonuses paid to team members and physicians, we had record first quarter earnings per share in a quarter that is typically our most challenging seasonal quarter.”

Dr. Berger continued, “Our performance was the result of the combination of cost savings measures that we instituted during the COVID-19 period, certain investments we made (particularly in 3D mammography) and the return to more normalized procedural volumes as the states in which we operate began to loosen COVID-19 restrictions. COVID-19 has also been a catalyst for tuck-in acquisitions. In February and March, we completed ten center acquisitions on the east coast, which we expect to contribute to the performance of the remaining quarters of this year.”

“Given the positive trends we are experiencing in our business and the strong financial performance of the first quarter, we have elected to revise our guidance levels upwards in anticipation of financial results that we project to exceed our original expectations. We have increased 2021 guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow. We also reduced our Cash Interest Expense guidance range to reflect the lower interest cost from our recently completed refinancing transaction,” added Dr. Berger.  

Dr. Berger continued, “On April 19th, we announced that we received FDA clearance for our DeepHealth AI mammography triage software, Saige-QTM, which is a worklist prioritization tool that enables radiologists to more effectively manage their mammography cases with the use of artificial intelligence. The software identifies suspicious screening exams that may need prioritized attention, allowing radiologists to optimize their workflow for efficiency and accuracy. We are at the beginning stages of deploying this technology across our various markets and expect that most of our breast imagers will have the benefit of this AI before year end. We expect RadNet will benefit from productivity enhancements, while providing our patients and payors with more accurate interpretations, fewer unnecessary patient call-backs and the possibility of detecting breast disease one to two years earlier than otherwise possible.”

“Lastly, in April, we completed a successful refinancing transaction of our senior term loan and revolving credit facility. Based upon our current and anticipated future leverage ratio, we anticipate an annual interest cost savings of up to $6 million, and we have secured significantly increased financial and operating flexibility to grow our business and execute our business plan,” added Dr. Berger.

Financial Results

For the first quarter of 2021, RadNet reported Revenue of $315.3 million, Adjusted EBITDA(1) of $45.5 million and Net Income of $9.5 million. Revenue increased $33.8 million (or 12.0%), Adjusted EBITDA(1) increased $25.1 million (or 123.4%) and Net Income increased $25.8 million over the first quarter of 2020. Per share Net Income for the first quarter was $0.18, compared to a per share Net Loss of $(0.33) in the first quarter of 2020, based upon a weighted average number of diluted shares outstanding of 52.8 million shares in 2021 and 50.3 million shares in 2020.

There were a number of extraordinary items impacting the first quarter including $6.2 million of grants received under the CARES Act Provider Relief Fund, $10.0 million net gain related to cash flow hedges and $6.8 million of COVID-19-related retention bonuses paid to team members and physicians. Adjusted to remove the CARES Act stimulus money received, Adjusted EBITDA(1) was $39.3 million during the first quarter of 2021 (an increase of 92.8% from the first quarter of 2020). Adjusting for all of the above extraordinary items, Adjusted Earnings(3) was $2.3 million and diluted Adjusted Earnings Per Share(3) was $0.04 during the first quarter of 2021.

In addition to the extraordinary items mentioned above, affecting Net Income in the first quarter of 2021 were certain non-cash expenses and non-recurring items including: $8.2 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $285,000 of severance paid in connection with headcount reductions related to cost savings initiatives; and $1.1 million 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 2021, as compared to the prior year’s first quarter, MRI volume increased 6.9%, CT volume increased 9.5% and PET/CT volume increased 2.5%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 8.4% 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 2021 and 2020, MRI volume increased 2.5%, CT volume increased 4.4% and PET/CT volume increased 2.9%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 5.0% over the prior year’s same quarter.

2021 Revised Guidance

RadNet amends its previously announced guidance levels as follows:

 
 
 Original Guidance RangeRevised Guidance Range
Total Net Revenue$1,250 million - $1,300 million$1,275 million - $1,325 million
Adjusted EBITDA(1)$180 million - $190 million$187 million - $197 million
Capital Expenditures(a)$70 million - $75 million$72 million - $77 million
Cash Interest Expense$39 million - $44 million$35 million - $40 million
Free Cash Flow (b)(2)$60 million - $70 million$70 million - $80 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, “We have increased our guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow (2). Additionally, with the lower interest cost as a result of our recent refinancing transaction, we have decreased our Cash Interest Expense guidance range.”  

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 2021 results on Monday, May 10th, 2021 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Conference Call Details:

Date: Monday, May 10, 2021
Time: 10:30 a.m. Eastern Time
Dial In-Number: 800-437-2398
International Dial-In Number: 929-477-0577

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=144796 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 2257200.

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 346 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Arizona. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 8,300 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 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)
 March 31, 2021 December 31, 2020
 (unaudited)  
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$31,091  $102,018 
Accounts receivable 146,665   129,585 
Due from affiliates 7,521   5,836 
Prepaid expenses and other current assets 37,720   32,985 
Total current assets 222,997   270,424 
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS   
Property and equipment, net 412,711   399,335 
Operating lease right-of-use assets 529,563   483,661 
Total property, equipment and right-of-use assets 942,274   882,996 
OTHER ASSETS   
Goodwill 502,566   472,879 
Other intangible assets 52,198   52,393 
Deferred financing costs 1,590   1,767 
Investment in joint ventures 36,813   34,528 
Deferred tax assets, net of current portion 31,554   34,687 
Deposits and other 38,794   36,983 
Total assets$1,828,786  $1,786,657 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES   
Accounts payable, accrued expenses and other$231,700   236,684 
Due to affiliates 18,133   14,010 
Deferred revenue 40,648   39,257 
Current finance lease liability 2,080   2,578 
Current operating lease liability 69,890   65,794 
Current portion of notes payable 40,166   39,791 
Total current liabilities 402,617   398,114 
LONG-TERM LIABILITIES   
Long-term finance lease liability 414   743 
Long-term operating lease liability 504,474   463,096 
Notes payable, net of current portion 602,684   612,913 
Other non-current liabilities 37,239   53,488 
Total liabilities 1,547,428   1,528,354 
EQUITY   
RadNet, Inc. stockholders' equity:   
Common stock - $.0001 par value, 200,000,000 shares authorized; 51,640,537 and 52,340,856 shares issued and outstanding at December 31, 2020 and March 31, 2021, respectively 5   5 
Additional paid-in-capital 316,032   307,788 
Accumulated other comprehensive loss (23,138)  (24,051)
Accumulated deficit (108,541)  (117,999)
Total RadNet, Inc.'s stockholders' equity 184,358   165,743 
Noncontrolling interests 97,000   92,560 
Total equity 281,358   258,303 
Total liabilities and equity$1,828,786  $1,786,657 
    

 

 
RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
(unaudited)
 Three Months Ended March 31,
  2021   2020 
REVENUE   
Service fee revenue$279,577  $248,333 
Revenue under capitation arrangements 35,742   33,231 
Total service revenue 315,319   281,564 
Provider relief funding 6,248   - 
OPERATING EXPENSES   
Cost of operations, excluding depreciation and amortization 282,280   267,417 
Depreciation and amortization 22,656   21,934 
(Gain) loss on sale and disposal of equipment and other (1,307)  771 
Severance costs 285   218 
Total operating expenses 303,914   290,340 
INCOME (LOSS) FROM OPERATIONS 17,653   (8,776)
    
OTHER INCOME AND EXPENSES   
Interest expense 12,826   11,552 
Equity in earnings of joint ventures (2,285)  (1,955)
Non-cash change in fair value of interest rate hedge (11,245)  - 
Other expenses 206   6 
Total other (income) expenses (498)  9,603 
INCOME (LOSS) BEFORE INCOME TAXES 18,151   (18,379)
(Provision for) benefit from income taxes (4,376)  4,381 
NET INCOME (LOSS) 13,775   (13,998)
Net income attributable to noncontrolling interests 4,317   2,360 
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$9,458  $(16,358)
    
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$0.18  $(0.33)
    
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$0.18  $(0.33)
WEIGHTED AVERAGE SHARES OUTSTANDING   
Basic 51,951,506   50,294,329 
Diluted 52,828,941   50,294,329 
    


 
RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(unaudited)
 Three Months Ended March 31,
  2021   2020 
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income (loss)$13,775  $(13,998)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:   
Depreciation and amortization 22,656   21,934 
Amortization of operating lease assets 17,863   17,259 
Equity in earnings of joint ventures (2,285)  (1,955)
Amortization deferred financing costs and loan discount 1,147   1,081 
(Gain) loss on sale and disposal of equipment (1,307)  771 
Amortization of cash flow hedge 925   - 
Non-cash change in fair value of interest rate hedge (11,245)  - 
Stock-based compensation 8,248   6,622 
Change in fair value of contingent consideration 200   - 
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions:   
Accounts receivable (17,493)  10,504 
Other current assets (4,308)  5,164 
Other assets (3,507)  677 
Deferred taxes 3,133   (11,413)
Operating leases (18,291)  (17,345)
Deferred revenue 1,416   28 
Accounts payable, accrued expenses and other 17,157   21,584 
Net cash provided by operating activities 28,084   40,913 
CASH FLOWS FROM INVESTING ACTIVITIES   
Purchase of imaging facilities and other acquisitions (57,075)  (4,300)
Purchase of property and equipment (30,424)  (51,538)
Proceeds from sale of equipment 151   779 
Net cash used in investing activities (87,348)  (55,059)
CASH FLOWS FROM FINANCING ACTIVITIES   
Principal payments on notes and leases payable (827)  (914)
Payments on Term Loan Debt (10,824)  (10,824)
Proceeds from revolving credit facility 87,100   215,900 
Payments on revolving credit facility (87,100)  (135,900)
Net cash (used in) provided by financing activities (11,651)  68,262 
EFFECT OF EXCHANGE RATE CHANGES ON CASH (12)  1 
NET INCREASE IN CASH AND CASH EQUIVALENTS (70,927)  54,117 
CASH AND CASH EQUIVALENTS, beginning of period 102,018   40,165 
CASH AND CASH EQUIVALENTS, end of period$31,091  $94,282 
    
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION   
Cash paid during the period for interest$8,267  $9,934 
    


 
 
RADNET, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1)
(IN THOUSANDS)
    
 Three Months Ended March 31,
  2021   2020 
    
Net income (loss) attributable to RadNet, Inc. common stockholders$9,458  $(16,358)
Provision for (benefit from) income taxes 4,376   (4,381)
Interest expense 12,826   11,552 
Severance costs 285   218 
Depreciation and amortization 22,656   21,934 
Non-cash employee stock-based compensation 8,248   6,622 
(Gain) loss on sale and disposal of equipment and other (1,307)  771 
Non-cash change in fair value of interest rate hedge (11,245)  - 
Other expenses 206   6 
Adjusted EBITDA(1)$ 45,503  $ 20,364 
    

 

 
PAYOR CLASS BREAKDOWN
   
   
  First Quarter
  2021 
   
Commercial Insurance 59.3%
Medicare 20.2%
Capitation 11.3%
Medicaid 2.7%
Workers Compensation/Personal Injury 3.3%
Other 3.3%
Total 100.0%


 
RADNET PAYMENTS BY MODALITY
         
         
  First QuarterFull Year Full Year Full Year
  2021
 2020
 2019
 2018
         
MRI 35.1% 35.4% 35.8% 35.2%
CT 17.4% 17.6% 16.9% 16.5%
PET/CT 5.7% 6.0% 5.6% 5.7%
X-ray 6.9% 7.3% 8.1% 8.4%
Ultrasound 12.9% 12.3% 12.4% 12.2%
Mammography 16.6% 15.7% 15.2% 15.8%
Nuclear Medicine 1.1% 1.0% 1.0% 1.1%
Other 4.3% 4.7% 4.9% 5.1%
Total 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
  March 31,
   2021 
   
   
NET INCOME ATTRIBUTABLE TO RADNET, INC.$ 9,458 
 COMMON STOCKHOLDERS 
   
   
 Subtract provider relief funding (6,248)
 Subtract non-cash net gain from cash flow hedges (i) (10,000)
 Add COVID-19-related retention bonuses 6,839 
 Total adjustments (9,409)
   
 Subtract tax impact of adjustments (ii) 2,258 
 Tax effected impact of adjustments (7,151)
   
TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE TO (7,151)
 RADNET, INC. COMMON STOCKHOLDERS 
   
ADJUSTED NET INCOME ATTRIBUTABLE TO RADNET, INC. 2,307 
 COMMON STOCKHOLDERS 
   
WEIGHTED AVERAGE SHARES OUTSTANDING 
 Diluted 52,828,941 
   
   
ADJUSTED DILUTED NET INCOME PER SHARE 
 ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$ 0.04 
   
   
(i) Impact is the combination of (a) the change in fair value of the hedges during the quarter and (b) the amortization of the accumulation of the changes in fair value from Other Comprehensive Income that existed prior to the hedges becoming ineffective.
(ii) Tax effected using 24.0% blended federal and state effective tax rate.

10 May, 2021