- Total Net Revenue (“Revenue”) increased 13.2% to $208.4 million in the third quarter of 2015 from $184.1 million in the third quarter of 2014
- Adjusted EBITDA (1) increased 5.6% to $35.3 in the third quarter of 2015 from $33.4 million in the third quarter of 2014
- Diluted earnings per share was $0.18 per share in the third quarter of 2015, an increase from $0.10 per share from last year’s third quarter
- Aggregate procedural volumes increased 12.0% and same center volumes increased 5.2 % as compared with the third quarter of 2014
- During the quarter, RadNet established a new joint venture in Maryland with LifeBridge Health
- Subsequent to the end of the quarter, RadNet completed the acquisition of Diagnostic Imaging Group, LLC in the New York metropolitan area
LOS ANGELES, Nov. 09, 2015 (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 297 owned and/or operated outpatient imaging centers, today reported financial results for its third quarter of 2015.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “We are pleased with the continuing improvement of our business since the first quarter of this year. This third quarter, we had our highest Revenue and EBITDA of 2015, reflective of growth and expansion initiatives we completed throughout the year and continued focus on managing costs. Although we are far from the full optimization of the infrastructure investments we made at the end of last year and throughout the first quarter of 2015, we are beginning to experience some of the operating leverage from the increased capacity these investments provided. Despite having more work to do to grow into this infrastructure, I am encouraged by utilization trends that I see in our business.”
“I’m most encouraged by strong volumes we are experiencing in many of our regional networks. Aggregate volumes increased 12.0% and same center volume increased 5.2% as compared with last year’s third quarter. Capitation in California continues to grow as well. As compared with last year’s third quarter, capitation revenue increased 21.5%,” added Dr. Berger.
Dr. Berger continued, “During the quarter, we completed the expansion of our New Jersey Imaging Joint Venture with Barnabas Health and established a new joint venture in the Baltimore, Maryland region with LifeBridge Health. Partnering with hospitals and health systems will continue to be an important part of our growth strategy. The Affordable Care Act encourages alliances between providers, and hospitals and health systems are more interested than ever in aligning with ancillary outpatient service providers like RadNet. These partnerships validate our expertise in all facets of imaging, from operating outpatient centers to managing in-hospital radiology departments, providing information technology solutions and provisioning off-site teleradiology services. ”
“Subsequent to the end of the third quarter, we completed the acquisition of Diagnostic Imaging Group, LLC (“DIG” ). DIG should incrementally provide us over $70 million of annual revenue, over 750,000 patient exams per year and 17 new facilities in densely populated New York metropolitan markets. The acquisition enhances our already-leading position in the New York metropolitan area, bolstering our presence in Brooklyn, Manhattan and the Bronx, while establishing us in Queens. The acquisition furthers our ability to pursue unique contracting and population health opportunities, and I believe there are substantial additional growth opportunities on which we can capitalize;” concluded Dr. Berger.
Third Quarter Financial Results
For the third quarter of 2015, RadNet reported Revenue of $208.4 million, Adjusted EBITDA (1) of $35.3 million and Net Income of $8.0 million, respectively. Revenue increased $24.3 million (or 13.2%), Adjusted EBITDA (1) increased $1.9 million (or 5.6%) and Net Income increased $3.5 million, respectively, over the third quarter of 2014. Per share Net Income for the third quarter was $0.18, compared to per share Net Income in the third quarter of 2014 of $0.10 (based upon a weighted average number of diluted shares outstanding of 44.8 million and 44.0 million for these periods in 2015 and 2014, respectively).
Affecting Net Income in the third quarter of 2015 were certain non-cash expenses and non-recurring items including: $4.8 million gain on the sale of our 10 wholly owned imaging facilities to our New Jersey Imaging Network joint venture; $906,000 of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $167,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $738,000 loss on the sale of certain capital equipment; and $1.4 million of amortization of deferred financing costs and loan discounts related to our credit facilities.
For the third quarter of 2015, as compared with the prior year’s third quarter, MRI volume increased 14.0%, CT volume increased 11.6% and PET/CT volume increased 7.2%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 12.0% over the prior year’s third quarter. On a same-center basis, including only those centers which were part of RadNet for both the third quarters of 2015 and 2014, MRI volume increased 5.7%, CT volume increased 7.6% and PET/CT volume increased 0.2%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 5.2% over the prior year’s same quarter.
Nine Month Financial Results
For the nine months ended September 30, 2015, RadNet reported Revenue, Adjusted EBITDA (1) and Net Income of $593.9 million, $89.1 million and $6.8 million, respectively. Revenue increased $61.9 million (or 11.6%), Adjusted EBITDA (1) decreased $5.4 million (or 5.8%) and Net Income increased $9.7 million, respectively, over the first nine months of 2014. Net Income Per Share for the nine month period ended September 30, 2015 was $0.15 per diluted share, compared to Net Loss of $0.07 per diluted share in corresponding nine month period of 2014 based upon a weighted average number of fully diluted shares outstanding of 44.7 million and 40.7 million for these periods in 2015 and 2014, respectively).
Affecting operating results in the nine months ended September 30, 2015 were certain non-cash expenses and non-recurring items including: $4.8 million gain on the sale of our 10 wholly owned imaging facilities to our New Jersey Imaging Network joint venture; $6.5 million of non-cash employee stock compensation expense resulting from the vesting of certain options and restricted stock; $297,000 of severance paid in connection with headcount reductions related to cost savings initiatives; $774,000 loss on the sale of certain capital equipment; and $4.0 million of amortization of deferred financing costs and loan discounts related to our credit facilities.
2015 Guidance Update
RadNet updates the previously announced 2015 fiscal year guidance ranges as follows:
| Original | Guidance After | ||
| 2015 Guidance | 3 rd Quarter 2015 | ||
| Revenue (a) | $785 - $805 million | $825 - $850 million | |
| Adjusted EBITDA (1) | $125 - $135 million | $125 - $130 million | |
| Capital Expenditures (b) | $40 - $45 million | $45 - $50 million | |
| Cash Interest Expense | $36 - $40 million | $35 - $38 million | |
| Free Cash Flow Generation (c) | $42 - $52 million | $37 - $45 million | |
(a) Service Fee Revenue, net of contractual allowances plus Revenue under capitation arrangements. This excludes the provision for bad debts. (b) Net of proceeds from the sale of equipment, imaging centers and joint venture interests. (c) Defined by the Company as Adjusted EBITDA (1) less total capital expenditures and cash paid for interest.
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 third quarter 2015 results on Monday, November 9th, 2015 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Monday, November 9, 2015 Time: 10:30 a.m. Eastern Time Dial In-Number: 888-576-4398 International Dial-In Number: 719-457-2083
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=117082 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 877-870-5176 from the U.S., or 858-384-5517 for international callers, and using the passcode 4858864.
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 297 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. In addition, RadNet provides radiology information technology solutions, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 7,300 employees. For more information, visit http://www.radnet.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning successfully integrating acquired operations, successfully achieving 2015 financial guidance, achieving cost savings, successfully developing and integrating new lines of business, continuing to grow its business by generating patient referrals and contracts with radiology practices, and receiving third-party reimbursement for diagnostic imaging services, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause the Company's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet's business and its financial results are detailed in its most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
| RADNET, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) | ||||||||
| September 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 36,054 | $ | 307 | ||||
| Accounts receivable, net | 159,205 | 148,235 | ||||||
| Current portion of deferred tax assets | 17,246 | 17,246 | ||||||
| Due from affiliates | 2,604 | 1,561 | ||||||
| Prepaid expenses and other current assets | 41,194 | 24,671 | ||||||
| Total current assets | 256,303 | 192,020 | ||||||
| PROPERTY AND EQUIPMENT, NET | 232,477 | 223,127 | ||||||
| OTHER ASSETS | ||||||||
| Goodwill | 201,450 | 200,304 | ||||||
| Other intangible assets | 45,225 | 47,624 | ||||||
| Deferred financing costs, net of current portion | 4,294 | 6,122 | ||||||
| Investment in joint ventures | 32,434 | 32,123 | ||||||
| Deferred tax assets, net of current portion | 32,584 | 35,334 | ||||||
| Deposits and other | 4,108 | 4,026 | ||||||
| Total assets | $ | 808,875 | $ | 740,680 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable, accrued expenses and other | $ | 95,058 | $ | 97,816 | ||||
| Due to affiliates | 5,664 | 6,289 | ||||||
| Deferred revenue | 1,323 | 1,964 | ||||||
| Current portion of notes payable | 23,391 | 19,468 | ||||||
| Current portion of deferred rent | 2,299 | 2,100 | ||||||
| Current portion of obligations under capital leases | 8,761 | 5,637 | ||||||
| Total current liabilities | 136,496 | 133,274 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Deferred rent, net of current portion | 26,299 | 20,965 | ||||||
| Line of credit | - | 15,300 | ||||||
| Notes payable, net of current portion | 606,744 | 551,059 | ||||||
| Obligations under capital lease, net of current portion | 7,422 | 6,143 | ||||||
| Other non-current liabilities | 5,577 | 6,241 | ||||||
| Total liabilities | 782,538 | 732,982 | ||||||
| EQUITY | ||||||||
| RadNet, Inc. stockholders' equity: | ||||||||
| Common stock - $.0001 par value, 200,000,000 shares authorized; 44,495,235 and 42,825,676 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 4 | 4 | ||||||
| Paid-in-capital | 188,310 | 177,750 | ||||||
| Accumulated other comprehensive loss | (146 | ) | (112 | ) | ||||
| Accumulated deficit | (165,452 | ) | (172,280 | ) | ||||
| Total RadNet, Inc.'s stockholders' equity | 22,716 | 5,362 | ||||||
| Noncontrolling interests | 3,621 | 2,336 | ||||||
| Total equity | 26,337 | 7,698 | ||||||
| Total liabilities and equity | $ | 808,875 | $ | 740,680 | ||||
| RADNET, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (IN THOUSANDS EXCEPT SHARE DATA) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
| NET REVENUE | |||||||||||||||||||||||
| Service fee revenue, net of contractual allowances and discounts | $ | 192,904 | $ | 171,098 | $ | 546,337 | $ | 498,536 | |||||||||||||||
| Provision for bad debts | (9,433 | ) | (7,532 | ) | (25,295 | ) | (21,945 | ) | |||||||||||||||
| Net service fee revenue | 183,471 | 163,566 | 521,042 | 476,591 | |||||||||||||||||||
| Revenue under capitation arrangements | 24,895 | 20,493 | 72,880 | 55,426 | |||||||||||||||||||
| Total net revenue | 208,366 | 184,059 | 593,922 | 532,017 | |||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Cost of operations, excluding depreciation and amortization | 175,631 | 153,000 | 520,348 | 445,838 | |||||||||||||||||||
| Depreciation and amortization | 14,601 | 14,423 | 43,836 | 45,193 | |||||||||||||||||||
| Loss on sale and disposal of equipment | 738 | 1,289 | 774 | 1,581 | |||||||||||||||||||
| Severance costs | 167 | 112 | 297 | 976 | |||||||||||||||||||
| Total operating expenses | 191,137 | 168,824 | 565,255 | 493,588 | |||||||||||||||||||
| INCOME FROM OPERATIONS | 17,229 | 15,235 | 28,667 | 38,429 | |||||||||||||||||||
| OTHER INCOME AND EXPENSES | |||||||||||||||||||||||
| Interest expense | 10,546 | 10,395 | 30,965 | 32,503 | |||||||||||||||||||
| Meaningful use incentive | - | - | (3,270 | ) | (1,762 | ) | |||||||||||||||||
| Equity in earnings of joint ventures | (1,992 | ) | (2,009 | ) | (6,301 | ) | (4,722 | ) | |||||||||||||||
| Gain on sale of imaging centers | (4,823 | ) | - | (4,823 | ) | - | |||||||||||||||||
| Loss on early extinguishment of Senior Notes | - | - | - | 15,927 | |||||||||||||||||||
| Other expenses | 8 | 6 | 418 | 4 | |||||||||||||||||||
| Total other expenses | 3,739 | 8,392 | 16,989 | 41,950 | |||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 13,490 | 6,843 | 11,678 | (3,521 | ) | ||||||||||||||||||
| (Provision for) benefit from income taxes | (5,199 | ) | (2,334 | ) | (4,300 | ) | 911 | ||||||||||||||||
| NET INCOME (LOSS) | 8,291 | 4,509 | 7,378 | (2,610 | ) | ||||||||||||||||||
| Net income attributable to noncontrolling interests | 304 | 58 | 550 | 219 | |||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. | |||||||||||||||||||||||
| COMMON STOCKHOLDERS | $ | 7,987 | $ | 4,451 | $ | 6,828 | $ | (2,829 | ) | ||||||||||||||
| BASIC NET INCOME (LOSS) PER SHARE | |||||||||||||||||||||||
| ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.18 | $ | 0.11 | $ | 0.16 | $ | (0.07 | ) | ||||||||||||||
| DILUTED NET INCOME (LOSS) PER SHARE | |||||||||||||||||||||||
| ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.18 | $ | 0.10 | $ | 0.15 | $ | (0.07 | ) | ||||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||||||||||||||
| Basic | 43,637,022 | 41,644,606 | 43,247,002 | 40,734,083 | |||||||||||||||||||
| Diluted | 44,751,936 | 44,033,580 | 44,704,323 | 40,734,083 | |||||||||||||||||||
| RADNET, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (IN THOUSANDS) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||
| 2015 | 2014 | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
| Net Income (Loss) | $ | 7,378 | $ | (2,610 | ) | |||||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
| Depreciation and amortization | 43,836 | 45,193 | ||||||||||||||
| Provision for bad debts | 25,295 | 21,945 | ||||||||||||||
| Equity in earnings of joint ventures | (6,301 | ) | (4,722 | ) | ||||||||||||
| Distributions from joint ventures | 6,255 | 7,358 | ||||||||||||||
| Amortization and write off of deferred financing costs and loan discount | 4,000 | 4,444 | ||||||||||||||
| Loss on sale and disposal of equipment | 774 | 1,581 | ||||||||||||||
| Loss on early extinguishment of Senior Notes | - | 15,927 | ||||||||||||||
| Gain on sale of imaging centers | (4,822 | ) | - | |||||||||||||
| Stock-based compensation | 6,477 | 2,069 | ||||||||||||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | ||||||||||||||||
| Accounts receivable | (32,485 | ) | (42,887 | ) | ||||||||||||
| Other current assets | (15,628 | ) | (4,754 | ) | ||||||||||||
| Other assets | (1,254 | ) | (72 | ) | ||||||||||||
| Deferred taxes | 2,750 | (2,461 | ) | |||||||||||||
| Deferred rent | 6,034 | 653 | ||||||||||||||
| Deferred revenue | (641 | ) | 604 | |||||||||||||
| Accounts payable , accrued expenses and other | (1,603 | ) | (8,225 | ) | ||||||||||||
| Net cash provided by operating activities | 40,065 | 34,043 | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
| Purchase of imaging facilities | (41,237 | ) | (9,428 | ) | ||||||||||||
| Purchase of noncontrolling interests | - | (196 | ) | |||||||||||||
| Purchase of property and equipment | (38,736 | ) | (33,895 | ) | ||||||||||||
| Proceeds from sale of equipment | 648 | 766 | ||||||||||||||
| Proceeds from sale of imaging facilities | 35,500 | - | ||||||||||||||
| Proceeds from sale of internal use software | 443 | - | ||||||||||||||
| Equity contributions in existing and purchase of interest in joint ventures | (265 | ) | (1,161 | ) | ||||||||||||
| Net cash used in investing activities | (43,647 | ) | (43,914 | ) | ||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
| Principal payments on notes and leases payable | (6,645 | ) | (16,733 | ) | ||||||||||||
| Proceeds from borrowings | 74,401 | 210,000 | ||||||||||||||
| Payments on Term Loan Debt/Senior Notes | (17,548 | ) | (211,344 | ) | ||||||||||||
| Deferred financing costs | (531 | ) | (6,650 | ) | ||||||||||||
| Net proceeds on revolving credit facility | (15,300 | ) | 25,100 | |||||||||||||
| Distributions paid to noncontrolling interests | (613 | ) | (148 | ) | ||||||||||||
| Proceeds from sale of noncontorlling interests | 5,005 | - | ||||||||||||||
| Proceeds from issuance of common stock upon exercise of options/warrants | 594 | 1,546 | ||||||||||||||
| Net cash provided by financing activities | 39,363 | 1,771 | ||||||||||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (34 | ) | (38 | ) | ||||||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 35,747 | (8,138 | ) | |||||||||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 307 | 8,412 | ||||||||||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 36,054 | $ | 274 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||||||||||
| Cash paid during the period for interest | $ | 26,543 | $ | 32,389 | ||||||||||||
| RADNET, INC. | |||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA (1) | |||||||||
| (IN THOUSANDS) | |||||||||
| Three Months Ended | |||||||||
| September 30, | |||||||||
| 2015 | 2014 | ||||||||
| Net Income Attributable to RadNet, Inc. Common Shareholders | $ | 7,987 | $ | 4,451 | |||||
| Plus Provision for Income Taxes | 5,199 | 2,334 | |||||||
| Plus Other Expenses | 8 | 6 | |||||||
| Plus Interest Expense | 10,546 | 10,395 | |||||||
| Plus Severance Costs | 167 | 112 | |||||||
| Plus Loss on Sale of Equipment | 738 | 1,289 | |||||||
| Less Gain on Sale of Imaging Centers | (4,823 | ) | - | ||||||
| Plus Depreciation and Amortization | 14,601 | 14,423 | |||||||
| Plus Non Cash Employee Stock Compensation | 906 | 433 | |||||||
| Adjusted EBITDA (1) | $ | 35,329 | $ | 33,443 | |||||
| Nine Months Ended | |||||||||
| September 30, | |||||||||
| 2015 | 2014 | ||||||||
| Net Income (Loss) Attributable to RadNet, Inc. Common Shareholders | $ | 6,828 | $ | (2,829 | ) | ||||
| Plus Provision for (Benefit From) Income Taxes | 4,300 | (911 | ) | ||||||
| Plus Other Expenses | 418 | 4 | |||||||
| Plus Loss on Early Extinguishment of Senior Notes | - | 15,927 | |||||||
| Plus Interest Expense | 30,965 | 32,503 | |||||||
| Plus Severance Costs | 297 | 976 | |||||||
| Plus Loss on Sale of Equipment | 774 | 1,581 | |||||||
| Less Gain on Sale of Imaging Centers | (4,823 | ) | - | ||||||
| Plus Depreciation and Amortization | 43,836 | 45,193 | |||||||
| Plus Non Cash Employee Stock Compensation | 6,477 | 2,069 | |||||||
| Adjusted EBITDA (1) | $ | 89,072 | $ | 94,513 | |||||
| PAYOR CLASS BREAKDOWN** | ||||
| Third Quarter | ||||
| 2015 | ||||
| Commercial Insurance | 52.7 | % | ||
| Medicare | 18.8 | % | ||
| Capitation | 11.4 | % | ||
| Workers Compensation/Personal Injury | 3.5 | % | ||
| Medicaid | 2.8 | % | ||
| Other | 10.7 | % | ||
| Total | 100.0 | % | ||
| **Capitation percentage has been calculated based upon its proportion of Revenue Under Capitation Arrangements in the period to | ||||
| Service Fee Revenue, Net of Contractual Allowances and Discounts plus Revenue Under Capitation Arrangements. | ||||
| After deducting the capitation percentage from 100%, all other payor class percentages are based upon a proportion to global paymnents | ||||
| received from consolidated imaging centers from that periods dates of services and excludes payments | ||||
| from hospital contracts, Breastlink, imaging center management fees, eRAD, Imaging on Call and other miscellaneous revenue. | ||||
| RADNET PAYMENTS BY MODALITY * | |||||||||||||||||||||
| Third Quarter | Full Year | Full Year | Full Year | Full Year | |||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||
| MRI | 34.9 | % | 36.1 | % | 36.3 | % | 35.5 | % | 35.1 | % | |||||||||||
| CT | 15.5 | % | 15.3 | % | 15.5 | % | 16.0 | % | 16.1 | % | |||||||||||
| PET/CT | 4.8 | % | 5.7 | % | 5.6 | % | 5.9 | % | 6.0 | % | |||||||||||
| X-ray | 9.2 | % | 10.2 | % | 10.5 | % | 10.3 | % | 10.1 | % | |||||||||||
| Ultrasound | 11.7 | % | 11.1 | % | 11.0 | % | 10.9 | % | 10.9 | % | |||||||||||
| Mammography | 15.9 | % | 16.5 | % | 15.7 | % | 16.0 | % | 15.9 | % | |||||||||||
| Nuclear Medicine | 1.1 | % | 1.4 | % | 1.5 | % | 1.5 | % | 1.6 | % | |||||||||||
| Other | 6.9 | % | 3.7 | % | 3.9 | % | 4.0 | % | 4.2 | % | |||||||||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Note | |||||||||||||||||||||
| * Based upon global payments received from consolidated Imaging Centers from that year's dates of service. | |||||||||||||||||||||
| Excludes payments from hospital contracts, Breastlink, Imaging on Call, Meaningful Use, eRAD, Center Management Fees and other miscellaneous operating activities. | |||||||||||||||||||||
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.
CONTACTS: RadNet, Inc. Mark Stolper, 310-445-2800 Executive Vice President and Chief Financial Officer
