• For the fourth quarter of 2019, RadNet reports Total Net Revenue (“Revenue”) of $300.8 million and Adjusted EBITDA(1) of $46.9 million; Revenue increased 17.0% and Adjusted EBITDA(1) increased 5.5% as compared with the same quarter in 2018
  • For full year 2019, RadNet reports Revenue of $1,154.2 million and Adjusted EBITDA(1)of $164.1 million; Revenue increased 18.4% and Adjusted EBITDA(1) increased 15.8% as compared with full year 2018
  • Net Income Attributable to RadNet, Inc. Common Stockholders(“Net Income”) for the fourth quarter was $10.4 million, or $0.21 per diluted share; This compares to an Adjusted Net Income of $4.5 million, or $0.09 per diluted share, in the fourth quarter of 2018, adjusted to exclude a $39.5 million gain from the re-measurement of the Company’s equity interest in New Jersey Imaging Network upon its consolidation and a $19.1 million expense from changes in the organization of east coast and international operations, on a tax-effected basis (“Adjusted Net Income”)
  • For full year 2019, Net Income was $14.8 million, or $0.29 per diluted share; This compares with an Adjusted Net Income of $7.6 million, or $0.16 per diluted share in 2018
  • In the fourth quarter, aggregate volumes increased 5.6% and same center volumes increased 3.3% compared with last year’s fourth quarter
  • RadNet announces 2020 guidance ranges, anticipating increases in Revenue, Adjusted EBITDA(1) and Free Cash Flow

LOS ANGELES, March 12, 2020 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 335 owned and/or operated outpatient imaging centers, today reported financial results for its fourth quarter and full year ended December 31, 2019.

Financial Results

Fourth Quarter Report:

For the fourth quarter of 2019, RadNet reported Revenue of $300.8 million and Adjusted EBITDA(1) of $46.9 million.  Revenue increased $43.6 million (or 17.0%) and Adjusted EBITDA(1) increased $2.4 million (or 5.5%) from the fourth quarter of 2018.

Net Income for the fourth quarter of 2019 was $10.4 million, or $0.21 per diluted share.  This compares to an Adjusted Net Income of $4.5 million, or $0.09 per diluted share, in the fourth quarter of 2018.  These per share values are based upon a weighted average number of diluted shares outstanding of 50.6 million in the fourth quarter of 2019 and 49.3 million of diluted shares outstanding in the fourth quarter of 2018.

Affecting Net Income in the fourth quarter of 2019 were certain non-cash expenses and non-recurring items including: $1.8 million of non-cash employee stock compensation expense; $564,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $898,000 loss on the disposal of certain capital equipment; $1.3 million net gain on the re-measurement of pre-existing interests; and $1.1 million of amortization of deferred financing costs and loan discount related to our existing credit facilities.

For the fourth quarter of 2019, as compared with the prior year’s fourth quarter, MRI volume increased 6.7%, CT volume increased 9.3% and PET/CT volume increased 13.6%.  Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 5.6% over the prior year’s fourth quarter.  On a same-center basis, including only those centers which were part of RadNet for both the fourth quarters of 2019 and 2018, MRI volume increased 3.8%, CT volume increased 6.2% and PET/CT volume increased 7.4%.  Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 3.3% from the prior year’s same quarter.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented “Our business performance was very strong in the fourth quarter.  Our key metrics improved from last year’s fourth quarter, including Revenue, Adjusted EBITDA(1) and aggregate and same-center volumes.  In particular, we grew our fourth quarter Revenue by 17.0% and Adjusted EBITDA(1) by over 5.5% as compared with an excellent fourth quarter in 2018,” added Dr. Berger.

“Our focus on patient services, our highly-recognized regional branding and our deployment of leading-edge technologies make RadNet centers preferred by patients, health plans and referring physicians.  As we continue through 2020, our focus will be on continued expansion of our regional networks through organic growth, acquisitions and the addition of our hospital joint venture offerings.  Furthermore, as demonstrated by yesterday’s announcement of the acquisition of DeepHealth, we are committed to driving technology applications, including those utilizing artificial intelligence, that we believe will increase productivity, drive efficiencies and improve patient outcomes,” Dr. Berger noted.

Annual Report:

For full year 2019, RadNet reported Revenue of $1,154.2 million and Adjusted EBITDA(1) of $164.1 million.  Revenue increased $179.0 million (or 18.4%) and Adjusted EBITDA(1) increased $22.4 million (or 15.8%) as compared with 2018.

Net Income for 2019 was $14.8 million, or $0.29 per diluted share.  This compares to an Adjusted Net Income of $7.6 million, or $0.16 per diluted share, in 2018.  These per share values are based upon a weighted average number of diluted shares outstanding of 50.2 million in 2019 and 48.7 million of diluted shares outstanding in 2018.

Affecting Net Income in 2019 were certain non-cash expenses and non-recurring items including: $8.7 million of non-cash employee stock compensation expense; $1.6 million of severance paid in connection with headcount reductions related to cost savings initiatives; $2.4 million loss on the disposal of certain capital equipment; $768,000 net gain on the re-measurement of pre-existing interests; and $4.2 million of amortization of deferred financing costs and loan discount related to our existing credit facilities.

For the year ended December 31, 2019, as compared to 2018, MRI volume increased 8.9%, CT volume increased 12.2% and PET/CT volume increased 9.6%.  Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 9.4% for the twelve months of 2019 over 2018.

Dr. Berger remarked, “Besides driving strong organic growth and effectively controlling expenses throughout the year, we made significant progress in 2019 towards furthering all aspects of our business strategy.  First, with respect to acquisitions, we purchased Kern Radiology, an operator of five imaging centers in Bakersfield, California, as well as completed small tuck-in transactions in West Hills, California, Islip, New York and Central New Jersey.  We established our second California-based joint venture with Dignity Health in Ventura County and entered into discussions with several health systems to establish additional joint ventures.  Additionally, we began to pursue applications for artificial intelligence by creating a division within RadNet focused on developing algorithms for image interpretation and for streamlining certain business processes.  This process which began by acquiring Nulogix and partnering with Whiterabbit.ai during 2019, will also look to acquire or partner with third party companies developing or offering alternative AI-based technology solutions.  The agreement to acquire DeepHealth, announced yesterday, and the appointment of Dr. Greg Sorensen to direct our AI initiatives demonstrate our confidence and commitment to AI and our belief that AI will transform the way we do business in coming years.”

Actual Results vs. 2019 Guidance:

The following compares the Company’s actual 2019 performance with previously announced revised guidance levels.

 
  2019 Guidance Range2019 Actual Results 
 Total Net Revenue$1,100 million - $1,150 million$1,154 million 
 Adjusted EBITDA(1)$158 million - $168 million$164.1 million 
 Capital Expenditures (a)$65 million - $70 million$71.5 million 
 Cash Paid for Interest$43 million - $48 million$47.0 million 
 Free Cash Flow Generation (b)$45 million - $55 million
$45.6 million
 
  1. Net of proceeds from the sale of equipment, imaging centers and joint venture interests, and excludes New Jersey Imaging Network capital expenditures of $2.6 million.
  2. Defined by the Company as Adjusted EBITDA(1) less Capital Expenditures and Cash Paid for Interest.

Dr. Berger commented, “We exceeded our revised Total Net Revenue guidance range and finished the year above the middle of our revised Adjusted EBITDA(1) range, ranges we increased from our initial guidance levels upon announcing our second quarter 2019 financial results.  Our capital expenditures exceeded our revised guidance range primarily as a result of our investment in additional mammography capacity on the east coast in conjunction with the rollout of the Whiterabbit.ai mammography program.”

2020 Fiscal Year Guidance

For its 2020 fiscal year, RadNet announces its guidance ranges as follows:

 
 Total Net Revenue$1,175 million - $1,225 million 
 Adjusted EBITDA(1)$165 million - $175 million 
 Capital Expenditures (a)$70 million - $75 million 
 Cash Paid for Interest$43 million - $48 million 
 Free Cash Flow Generation (b)$48 million - $58 million 

  1. Net of proceeds from the sale of equipment, imaging centers and joint venture interests, and excludes New Jersey Imaging Network capital expenditures of $2.6 million.
  2. Defined by the Company as Adjusted EBITDA(1) less Capital Expenditures and Cash Paid for Interest.

Dr. Berger noted, “We are optimistic about our business in 2020.  First, we expect 2020 to have stable reimbursement from Medicare relative to 2019.  We also believe we have potential upside in our rates with private payors and capitated medical groups as we continue to work with them to drive more imaging from significantly more expensive hospital settings into our lower cost locations.  Second, we expect to benefit from the contributions of acquisitions that were part of RadNet for only a portion of 2019, such as Kern Radiology and the small tuck-in acquisitions we completed on both coasts throughout 2019.  We also expect in 2020 to expand several of our joint ventures on both the east and west coasts, and establish one or more new JV partnerships.  Finally, we plan to accelerate our commitment to AI solutions that can result in greater productivity and accuracy of our physicians and create new population health screening offerings for certain disease processes that can be offered to payors and health plans on an economical basis.”

Dr. Berger continued, “Thus far in 2020, winter weather conditions in the northeast have been very mild and our performance in January and February has been strong.  We anticipate driving organic growth from the significant capital investments we made in 2019, which included a further commitment to 3D mammography technology, the addition and upgrading of MRIs with faster scanning and new applications and the expansion of a number of our wholly-owned and joint venture centers.”

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 today, at 10:30 a.m. Eastern Time.  During the call, management will discuss the Company's 2019 fourth quarter and year-end results.

Conference Call Details:

Date:  Thursday, March 12, 2020
Time:  10:30 a.m. ET
Dial In-Number:  800-458-4121
International Dial-In Number:  786-789-4772

There will also be simultaneous and archived webcasts available at http://public.viavid.com/index.php?id=138203 or http://www.radnet.com under the “About RadNet” menu section and “News & Press 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 3702891.

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.

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 335 owned and/or operated outpatient imaging centers.  RadNet's core markets include California, Maryland, Delaware, New Jersey and New York.  Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 8,000 employees.  For more information, visit http://www.radnet.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning successfully integrating the Company’s acquired operations, successfully achieving 2020 financial guidance, achieving cost savings, successfully developing and integrating its information technology operations as well as new lines of business, continuing to grow its business by generating patient referrals and contracts with radiology practices and receiving third-party reimbursement for diagnostic imaging services are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause the Company's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet's business and its financial results are detailed in its most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speak only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

CONTACTS:

RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer


 
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
 As of December 31,
  2019   2018 
ASSETS       
CURRENT ASSETS       
Cash and cash equivalents$40,165  $10,389 
Accounts receivable 154,763   148,919 
Due from affiliates 1,242   595 
Prepaid expenses and other current assets 43,625   46,288 
Assets held for sale 2,041   2,499 
Total current assets 241,836   208,690 
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS       
Property and equipment, net 366,746   345,729 
Operating lease right-of-use assets 445,477   - 
Total property, equipment and right-of-use assets 812,223   345,729 
OTHER ASSETS       
Goodwill 440,981   418,093 
Other intangible assets 42,994   40,593 
Deferred financing costs 1,559   1,354 
Investment in joint ventures 34,470   37,973 
Deferred tax assets 34,548   31,506 
Deposits and other 36,996   25,392 
Total assets$1,645,607  $1,109,330 
LIABILITIES AND EQUITY       
CURRENT LIABILITIES       
Accounts payable, accrued expenses and other 206,206   181,028 
Due to affiliates 14,347   13,089 
Deferred revenue related to software sales 1,316   2,398 
Current portion of deferred rent -   3,735 
Current portion of finance lease liability 3,283   - 
Current portion of operating lease liability 61,206   - 
Current portion of notes payable 39,691   33,653 
Current portion of obligations under capital lease -   5,614 
Total current liabilities 326,049   239,517 
LONG-TERM LIABILITIES       
Deferred rent, net of current portion -   31,542 
Long-term finance lease liability 3,264   - 
Long-term operating lease liability 420,922   - 
Notes payable, net of current portion 652,704   626,507 
Obligations under capital lease, net of current portion -   6,505 
Other non-current liabilities 9,529   5,006 
Total liabilities 1,412,468   909,077 
EQUITY       
RadNet, Inc. stockholders' equity:       
Common stock - $.0001 par value, 200,000,000 shares authorized; 50,314,328 and 48,977,485 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively 5   5 
Additional paid-in-capital 262,865   242,835 
Accumulated other comprehensive (loss) income (8,026)  2,259 
Accumulated deficit (103,159)  (117,915)
Total RadNet, Inc.'s stockholders' equity 151,685   127,184 
Noncontrolling interests 81,454   73,069 
Total equity 233,139   200,253 
Total liabilities and equity 1,645,607   1,109,330 
        


 
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
      
 Years Ended December 31,
  2019   2018   2017 
REVENUE           
Service fee revenue, net of contractual allowances and discounts        $857,178 
Provision for bad debts         (46,555)
Service fee revenue$1,028,236  $868,741   810,623 
Revenue under capitation arrangements 125,943   106,405   111,563 
Total net revenue 1,154,179   975,146   922,186 
OPERATING EXPENSES           
Cost of operations, excluding depreciation and amortization 999,692   867,547   802,377 
Depreciation and amortization 80,607   72,899   66,796 
Loss (gain) on sale and disposal of equipment 2,383   (2,054)  1,142 
Loss on impairment -   3,937   - 
Severance costs 1,619   1,931   1,821 
Total operating expenses 1,084,301   944,260   872,136 
INCOME FROM OPERATIONS 69,878   30,886   50,050 
            
OTHER INCOME AND EXPENSES           
Interest expense 48,044   43,456   40,623 
Equity in earnings of joint ventures (8,350)  (11,377)  (13,554)
Gain on re-measurement of pre-existing interest (768)  (39,539)  - 
Gain on sale of imaging centers and medical practice -   -   (3,146)
Other expenses (income) 1,283   (181)  (258)
Total other expenses 40,209   (7,641)  23,665 
INCOME BEFORE INCOME TAXES 29,669   38,527   26,385 
Provision for income taxes (6,229)  (394)  (24,310)
NET INCOME 23,440   38,133   2,075 
Net income attributable to noncontrolling interests 8,684   5,890   2,022 
            
NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$14,756  $32,243  $53 
            
BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$0.30  $0.67  $0.00 
            
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$0.29  $0.66  $0.00 
            
WEIGHTED AVERAGE SHARES OUTSTANDING           
Basic 49,674,858   48,114,275   46,880,775 
Diluted 50,244,006   48,678,999   47,401,921 
      


 
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
      
 Years Ended December 31,
  2019   2018   2017 
CASH FLOWS FROM OPERATING ACTIVITIES           
Net income$23,440  $38,133  $2,075 
Adjustments to reconcile net income to net cash provided by operating activities:           
Depreciation and amortization 80,607   72,899   66,796 
Amortization of operating right-of-use assets 66,842   -   - 
Provision for bad debts -   -   46,555 
Equity in earnings of joint ventures, net of dividends 248   13,469   (4,864)
Amortization and write off of deferred financing costs and loan discount 4,184   3,898   3,483 
Loss (gain) on sale and disposal of equipment 2,383   (2,054)  1,142 
Gain on sale of imaging centers -   -   (3,146)
Gain on re-measurement of pre-existing interest (768)  (39,539)  - 
Loss on impairment -   3,937   - 
Stock-based compensation 8,730   7,662   6,787 
Other non cash item in other expenses (559)  -   - 
Non cash severance 188   -   1,047 
Change in value of contingent consideration (3,123)  1,749   - 
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions:           
Accounts receivable (17,482)  2,145   (37,164)
Other current assets (2,178)  (9,248)  1,461 
Other assets (2,326)  (1,687)  (801)
Deferred taxes (3,888)  (6,935)  19,504 
Operating lease liability (66,831)  -   - 
Deferred rent -   6,312   2,135 
Deferred revenue (1,082)  (208)  1,034 
Accounts payable, accrued expenses and other 15,937   26,221   36,181 
Net cash provided by operating activities 104,322   116,754   142,225 
CASH FLOWS FROM INVESTING ACTIVITIES           
Purchase of imaging facilities (27,150)  (73,192)  (27,612)
Investment at cost (143)  (2,200)  (500)
Purchase of property and equipment (74,153)  (72,180)  (61,336)
Proceeds from sale of equipment 1,160   2,575   852 
Proceeds from sale of equity interest in a joint venture 132   -   - 
Proceeds from sale of imaging and medical practice assets -   -   8,429 
Proceeds from sale of internal use software -   248   492 
Nulogix return of capital 792   -   - 
Cash contribution from partner in JV formation -   -   1,473 
Equity contributions in existing and purchase of interest in joint ventures (103)  (2,000)  (1,118)
Net cash used in investing activities (99,465)  (146,749)  (79,320)
CASH FLOWS FROM FINANCING ACTIVITIES           
Principal payments on notes and leases payable (6,494)  (6,072)  (6,836)
Payments on senior notes (40,742)  (33,830)  (196,666)
Proceeds from borrowings 97,144   -   164,938 
Distributions paid to noncontrolling interests (3,057)  (1,427)  (1,528)
Proceeds from sale of noncontrolling interest 5,275   -   7,720 
Contributions from noncontrolling partners 750   2,640   125 
Proceeds from revolving credit facility 261,200   204,300   200,800 
Payments on revolving credit facility (289,200)  (176,300)  (200,800)
Purchase of non-controlling interests -   (200)  - 
Proceeds from issuance of common stock upon exercise of options 75   20   - 
Net cash provided by (used in) financing activities 24,951   (10,869)  (32,247)
EFFECT OF EXCHANGE RATE CHANGES ON CASH (32)  (69)  26 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,776   (40,933)  30,684 
CASH AND CASH EQUIVALENTS, beginning of period 10,389   51,322   20,638 
CASH AND CASH EQUIVALENTS, end of period$40,165  $10,389  $51,322 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION           
Cash paid during the period for interest$46,986  $37,016  $34,197 
Cash paid during the period for income taxes$5,884  $4,933  $4,939 
            


 
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE DATA)
(unaudited)
 Three Months Ended
 December 31,
  2019   2018 
REVENUE       
Service fee revenue 265,485   227,605 
Revenue under capitation arrangements 35,356   29,606 
Total revenue 300,841   257,211 
OPERATING EXPENSES       
Cost of operations, excluding depreciation and amortization 255,695   233,347 
Depreciation and amortization 20,413   19,477 
Loss on sale and disposal of equipment 898   150 
Loss on IOC reporting unit goodwill and trade name impairment -   3,937 
Severance costs 564   844 
Total operating expenses 277,571   257,755 
INCOME FROM OPERATIONS 23,270   (544)
        
OTHER INCOME AND EXPENSES       
Interest expense 11,454   12,113 
Equity in earnings of joint ventures (2,278)  (1,830)
Gain on re-measurement of pre-existing interest (1,273)  (39,539)
Other expenses (income) 13   (194)
Total other expenses 7,916   (29,450)
INCOME BEFORE INCOME TAXES 15,354   28,906 
(Provision for) benefit from income taxes (2,673)  2,441 
NET INCOME 12,680   31,347 
Net income attributable to noncontrolling interests 2,283   2,211 
        
NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS $10,397  $29,136 
        
BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$0.21  $0.60 
        
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS$0.21  $0.59 
        
WEIGHTED AVERAGE SHARES OUTSTANDING       
Basic 49,905,482   48,632,531 
Diluted 50,633,570   49,259,156 
        


 
RADNET, INC.
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1)
(IN THOUSANDS)
    
 Three Months Ended
 December 31,
  2019   2018 
        
Net Income Attributable to RadNet, Inc. Common Stockholders$10,397  $29,136 
Plus Provision for Income Taxes 2,673   (2,441)
Plus Other Expense (Income) 13   (194)
Plus Interest Expense 11,454   12,113 
Plus Severance Costs 564   844 
Plus Loss on Disposal of Equipment 898   150 
Plus Depreciation and Amortization 20,413   19,477 
Plus Non Cash Employee Stock Compensation 1,767   1,105 
Plus (Gain) on Re-measurement of Pre-existing Interest (1,273)  (39,539)
Plus Legal Settlement -   786 
Plus Loss on Goodwill/Trade Name Impairment -   3,937 
Plus Changes in the Organization of East Coast and International Operations -   19,101 
        
Adjusted EBITDA(1)$ 46,906  $ 44,475 
        
        
 Fiscal Year Ended
 December 31,
  2019   2018 
        
Net Income Attributable to RadNet, Inc. Common Stockholders$14,756  $32,243 
Plus Provision for Income Taxes 6,229   394 
Plus Other (Income) 1,283   (181)
Plus Interest Expense 48,044   43,456 
Plus Severance Costs 1,619   1,931 
Plus Loss (Gain) on Disposal of Equipment 2,383   (2,054)
Plus Legal Settlement 1,248   786 
Plus Depreciation and Amortization 80,607   72,899 
Plus Non Cash Employee Stock Compensation 8,730   7,662 
Plus (Gain) on Re-measurement of Pre-existing Interest (768)  (39,539)
Plus Loss on Goodwill/Trade Name Impairment -   3,937 
Plus Transaction Costs - EmblemHealth/ACP -   681 
Plus Changes in the Organization of East Coast and International Operations -   19,101 
Plus Gain on Sale of Equipment Attributable to Noncontrolling Interest -   440 
        
Adjusted EBITDA(1)$ 164,131  $ 141,756 
        


 
PAYOR CLASS BREAKDOWN**
             
  Fourth Quarter         
  2019         
             
Commercial Insurance 57.6%         
Medicare 20.5%         
Capitation 11.8%         
Workers Compensation/Personal Injury 2.2%         
Medicaid 3.3%         
Other 4.7%         
Total 100.0%         
             
**Calculated as percentages of global payments received from that period's dates of services.         
             
             
RADNET PAYMENTS BY MODALITY *
         
  Fourth Quarter Full Year Full Year Full Year
  2019 2019 2018 2017
         
MRI 35.8% 35.8% 35.2% 34.9%
CT 16.7% 16.9% 16.5% 16.2%
PET/CT 5.8% 5.6% 5.7% 5.2%
X-ray 7.6% 8.1% 8.4% 8.9%
Ultrasound 12.2% 12.4% 12.2% 12.1%
Mammography 16.0% 15.2% 15.8% 16.3%
Nuclear Medicine 1.0% 1.0% 1.1% 1.1%
Other 5.0% 4.9% 5.1% 5.2%
  100.0% 100.0% 100.0% 100.0%
         
Note        
* Based upon global payments received from that period's dates of service.
         

Footnotes

(1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and excludes losses or gains on the disposal of equipment, other income or loss, loss on debt extinguishments, bargain purchase gains 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 and extraordinary events which took 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.