Full Press Release Details
RadNet Reports Record Full Year 2011 and Fourth Quarter Results and Releases 2012 Financial Guidance
LOS ANGELES, California., March 8, 2012 - RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 233 owned and/or operated outpatient imaging centers (inclusive of 20 facilities held in Joint Ventures), today reported financial results for its fourth quarter and full year ended December 31, 2011.
For full year 2011, the Company reported Revenue, Adjusted EBITDA(1) and Net Income of $619.8 million, $115.5 million and $7.2 million, respectively. Revenue increased $68.0 million (or 12.3%), Adjusted EBITDA(1) increased $9.3 million (or 8.8%) and Net Income increased $20.1 million, respectively, from full year 2010 results.
Net Income for 2011 was $0.19 per share, compared to a Net Loss of $(0.35) per share in 2010 (based upon a weighted average number of diluted shares outstanding of 38.8 million and 36.9 million in 2011 and 2010, respectively). Affecting Net Income in 2011 were certain non-cash expenses and non-recurring items including: non-cash gains from the mark-to-market of our interest rate swaps of $5.4 million; $3.1 million of non-cash employee stock compensation expense resulting from the vesting of certain options and warrants; $2.9 million of non-cash Deferred Financing Expense related to the amortization of financing fees paid as part of our existing credit facilities; $1.4 million of severance paid in connection with the headcount reductions related to cost savings initiatives from previously announced acquisitions; $2.2 million gain on the disposal or sale of certain capital equipment; and a $1.2 million non-cash charge to interest expense related to the amortization of accumulated unrealized losses on interest rate swaps related to the Company's credit facilities.
_______________________
For the year ended December 31, 2011, as compared to 2010, MRI volume increased 17.6%, CT volume increased 11.0% and PET/CT volume increased 3.2%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 13.1% for the twelve months of 2011 over 2010.
Fourth Quarter Report:
For the fourth quarter of 2011, RadNet reported Revenue, Adjusted EBITDA(1) and Net Income of $164.8 million, $32.3 million and $4.5 million, respectively. Revenue increased $18.6 million (or 12.8%), Adjusted EBITDA(1) increased $2.1 million (or 7.0%) and Net Income increased $1.2 million (or 37.8%) over the fourth quarter of 2010.
Net Income for the fourth quarter of 2011 was $0.12 per share, compared with a Net Income of $0.09 per share in the fourth quarter of 2010 (based upon a weighted average number of diluted shares outstanding of 38.1 million and 37.8 million for these periods in 2011 and 2010, respectively). Excluding non-cash gains from the mark-to-market of our interest rate swaps of $1.7 million, a $306,00 non-cash charge to interest expense related to the amortization of accumulated unrealized losses on interest rate swaps, gains from the disposal or sale of equipment of $312,000 and non-cash stock compensation of $611,000, RadNet would have reported Net Income of $3.5 million, or $0.09 per fully diluted share, for the fourth quarter of 2011 compared with a Net Income of $3.2 million, or $0.08 per share, for the fourth quarter of 2010 excluding those same non-cash losses and expenses.
Also affecting Net Income in the fourth quarter of 2011 were certain other non-cash expenses and non-recurring items, including $421,000 of severance paid in connection with employee reductions related to cost savings initiatives and $754,000 of non-cash Deferred Financing Expense related to the amortization of financing fees paid as part of our new credit facilities and senior unsecured notes.
For the fourth quarter of 2011, as compared with the prior year's fourth quarter, MRI volume increased 19.7%, CT volume increased 18.8% and PET/CT volume increased 7.6%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 18.2% 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 2011 and 2010, MRI volume increased 4.0%, CT volume increased 2.4% and PET/CT volume decreased 2.9%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 4.6% over the prior year's same quarter.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented "We are pleased to report record fourth quarter and full-year 2011 results. Our fourth quarter and full-year Revenue, EBITDA, Net Income and procedural volumes were at their highest levels in our Company's history. I'm proud we were able to achieve these metrics, particularly our positive same-center volume growth, in what remains a difficult operating environment, challenged by lower utilization of healthcare services, pressured reimbursement and large patient populations who have seen their healthcare benefits eliminated or reduced."
"I believe our results illustrate the strength of our operating model, which has allowed us to take market share aware from competitors at the local and regional levels. Our relative size, operating efficiency, depth of management talent and continued access to capital remain important advantages. We believe our multi-modality approach and geographic clustering operating model is necessary for long-term success in the diagnostic imaging industry."
Dr. Berger continued, "We took important steps in 2011 to further our growth and long-term prospects. In November, we completed the acquisition of 21 facilities from CML Healthcare, an acquisition which added 15 facilities in Maryland and a new local market for RadNet in Rhode Island. We also completed the development of our eRAD Radiology Information System which we will be implementing throughout the RadNet network during 2012. Also in 2011, we established a focused effort on partnering with health systems and hospitals to become the outsourced imaging provider of choice. Finally, we established several cost savings and operational productivity programs designed to increase the efficiency with which we operate and deliver better service to our patients and referring physician communities."
Actual 2011 Results vs. 2011 Guidance:
The following compares the Company's actual 2011 performance with previously announced guidance levels.
| Guidance Range | Actual Results | ||
| Revenue | $575 million - $605 million | $619.8 million | |
| Adjusted EBITDA (1) | $110 million - $120 million | $115.5 million | |
| Capital Expenditures (a) | $35 million - $40 million | $39.7 million | |
| Cash Interest Expense | $45 million - $49 million | $47.3 million | |
| Free Cash Flow Generation (b) | $25 million - $35 million | $28.5 million |
Dr. Berger commented, "We are pleased to have met or exceeded each guidance level we set for 2011. While we exceeded our revenue projections, our EBITDA, Capital Expenditures, Cash Interest Expense and Free Cash Flow metrics fell within the guidance ranges we set a year ago. We believe these 2011 performance objectives, which were set at levels above 2010 results, were accomplished partly through capturing market share from our competitors, most of which are single-center or small-group operators. I believe our size, access to capital, economies of scale and efficiency have continued to separate us from much of the rest of the industry."
2012 Fiscal Year Guidance
For its 2012 fiscal year, RadNet announces its guidance ranges as follows:
| Revenue | $660 million - $700 million |
| Adjusted EBITDA (1) | $120 million - $130 million |
| Capital Expenditures (a) | $35 million - $40 million |
| Cash Interest Expense | $46 million - $51 million |
| Free Cash Flow Generation (b) | $30 million - $40 million |
"As reflected in our guidance, we are optimistic about 2012. Despite our assumption that the operating environment may continue to be affected by a difficult broader economy, we are predicting increasing aggregate procedural volumes, Revenue and EBITDA. We expect to benefit in 2012 from the full-year contribution of the CML transaction we completed in November of 2011 and the numerous capital investments we made and projects we began in 2011. We also should benefit from cost savings and productivity measures we implemented throughout 2011 designed to lower salaries, professional fees and information technology expenses. Though our 2012 guidance incorporates reimbursement cuts from Medicare and certain private health plans, the midpoint of our guidance reflects only modest volume increases which result in flat same-center Revenue as compared with 2011," added Dr. Berger.
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 Standard Time. During the call, management will discuss the Company's 2011 fourth quarter and year-end results.
Conference Call Details:
Date: Thursday, March 8, 2012
Time: 10:30 a.m. EST
Dial In-Number: 800-753-0487
International Dial-In Number: 913-312-0689
There will also be simultaneous and archived webcasts available at http://viavid.net/dce.aspx?sid=00009416 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 877-870-5176 from the U.S., or 858-384-5517 for international callers, and using the passcode 6034578.
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.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 233 owned and/or operated outpatient imaging centers (inclusive of 20 facilities held in Joint Ventures). RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 6,300 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 2012 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.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE DATA)
| December 31, | ||||||||
| 2011 | 2010 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,455 | $ | 627 | ||||
| Accounts receivable, net | 128,432 | 96,094 | ||||||
| Asset held for sale | 2,300 | - | ||||||
| Prepaid expenses and other current assets | 19,140 | 14,304 | ||||||
| Total current assets | 152,327 | 111,025 | ||||||
| PROPERTY AND EQUIPMENT, NET | 215,527 | 194,230 | ||||||
| OTHER ASSETS | ||||||||
| Goodwill | 159,507 | 143,353 | ||||||
| Other intangible assets | 53,105 | 57,348 | ||||||
| Deferred financing costs, net | 13,490 | 15,486 | ||||||
| Investment in joint ventures | 22,326 | 15,444 | ||||||
| Deposits and other | 2,906 | 2,628 | ||||||
| Total assets | $ | 619,188 | $ | 539,514 | ||||
| LIABILITIES AND EQUITY DEFICIT | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued expenses | $ | 103,101 | $ | 82,619 | ||||
| Due to affiliates | 3,762 | 2,975 | ||||||
| Deferred revenue | 1,076 | 1,568 | ||||||
| Current portion of notes payable | 6,608 | 8,218 | ||||||
| Current portion of deferred rent | 999 | 745 | ||||||
| Current portion of obligations under capital leases | 6,834 | 9,139 | ||||||
| Total current liabilities | 122,380 | 105,264 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Deferred rent, net of current portion | 12,407 | 10,379 | ||||||
| Deferred taxes | 277 | 277 | ||||||
| Notes payable, net of current portion | 484,046 | 481,578 | ||||||
| Line of credit | 58,000 | - | ||||||
| Obligations under capital lease, net of current portion | 3,338 | 5,639 | ||||||
| Other non-current liabilities | 8,547 | 18,850 | ||||||
| Total liabilities | 688,995 | 621,987 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY DEFICIT | ||||||||
| Common stock - $.0001 par value, 200,000,000 shares authorized; 37,426,460 and 37,223,475 shares issued and outstanding at December 31, 2011 and 2010, respectively | 4 | 4 | ||||||
| Paid-in-capital | 165,796 | 162,444 | ||||||
| Accumulated other comprehensive loss | (946 | ) | (2,137 | ) | ||||
| Accumulated deficit | (235,610 | ) | (242,841 | ) | ||||
| Total Radnet, Inc.'s equity deficit | (70,756 | ) | (82,530 | ) | ||||
| Noncontrolling interests | 949 | 57 | ||||||
| Total equity deficit | (69,807 | ) | (82,473 | ) | ||||
| Total liabilities and equity deficit | $ | 619,188 | $ | 539,514 |
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE DATA)
| Years Ended December 31, | ||||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| NET REVENUE | $ | 619,800 | $ | 551,815 | $ | 527,615 | ||||||
| OPERATING EXPENSES | ||||||||||||
| Cost of operations | 477,828 | 420,973 | 397,753 | |||||||||
| Depreciation and amortization | 57,481 | 53,997 | 53,800 | |||||||||
| Provision for bad debts | 34,679 | 33,158 | 32,704 | |||||||||
| Loss (gain) on sale of equipment | (2,240 | ) | 1,136 | 523 | ||||||||
| Severance costs | 1,391 | 838 | 731 | |||||||||
| Total operating expenses | 569,139 | 510,102 | 485,511 | |||||||||
| INCOME FROM OPERATIONS | 50,661 | 41,713 | 42,104 | |||||||||
| OTHER EXPENSES | ||||||||||||
| Interest expense | 52,798 | 48,398 | 50,016 | |||||||||
| Gain on bargain purchase | - | - | (1,387 | ) | ||||||||
| Loss on extinguishment of debt | - | 9,871 | - | |||||||||
| Other expenses (income) | (5,075 | ) | 505 | 416 | ||||||||
| Total other expenses | 47,723 | 58,774 | 49,045 | |||||||||
| INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES | 2,938 | (17,061 | ) | (6,941 | ) | |||||||
| Provision for income taxes | (820 | ) | (576 | ) | (443 | ) | ||||||
| Equity in earnings of joint ventures | 5,224 | 4,952 | 5,209 | |||||||||
| NET INCOME (LOSS) | 7,342 | (12,685 | ) | (2,175 | ) | |||||||
| Net income attributable to noncontrolling interests | 111 | 167 | 92 | |||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 7,231 | $ | (12,852 | ) | $ | (2,267 | ) | ||||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.19 | $ | (0.35 | ) | $ | (0.06 | ) | ||||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.19 | $ | (0.35 | ) | $ | (0.06 | ) | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||
| Basic | 37,367,736 | 36,853,477 | 36,047,033 | |||||||||
| Diluted | 38,785,675 | 36,853,477 | 36,047,033 |
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
| Years Ended December 31, | ||||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
| Net income (loss) | $ | 7,342 | $ | (12,685 | ) | $ | (2,175 | ) | ||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 57,481 | 53,997 | 53,800 | |||||||||
| Provision for bad debts | 34,679 | 33,158 | 32,704 | |||||||||
| Equity in earnings of joint ventures | (5,224 | ) | (4,952 | ) | (5,209 | ) | ||||||
| Distributions from joint ventures | 4,993 | 7,639 | 4,420 | |||||||||
| Deferred rent amortization | 2,282 | 1,848 | 1,094 | |||||||||
| Amortization of deferred financing cost | 2,940 | 2,797 | 2,678 | |||||||||
| Amortization of bond discount | 244 | 164 | - | |||||||||
| Loss (gain) on sale and disposal of equipment | (2,240 | ) | 1,136 | 523 | ||||||||
| Loss on extinguishment of debt | - | 9,871 | - | |||||||||
| Gain on bargain purchase | - | - | (1,387 | ) | ||||||||
| Amortization of cash flow hedge | 1,225 | 917 | 6,119 | |||||||||
| Stock-based compensation | 3,110 | 3,718 | 3,607 | |||||||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | ||||||||||||
| Accounts receivable | (57,354 | ) | (35,985 | ) | (24,432 | ) | ||||||
| Other current assets | (3,935 | ) | (3,226 | ) | 4,206 | |||||||
| Other assets | 43 | 24 | 51 | |||||||||
| Deferred revenue | (492 | ) | 207 | - | ||||||||
| Accounts payable and accrued expenses | 12,542 | 8,256 | 619 | |||||||||
| Net cash provided by operating activities | 57,636 | 66,884 | 76,618 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
| Purchase of imaging facilities | (42,990 | ) | (61,774 | ) | (6,085 | ) | ||||||
| Proceeds from sale of imaging facilities | - | - | 650 | |||||||||
| Purchase of property and equipment | (42,720 | ) | (40,293 | ) | (30,752 | ) | ||||||
| Proceeds from sale of equipment | 325 | 685 | 219 | |||||||||
| Proceeds from insurance claims on damaged equipment | 2,740 | - | - | |||||||||
| Purchase of equity interest in joint ventures | (5,094 | ) | - | (315 | ) | |||||||
| Net cash used in investing activities | (87,739 | ) | (101,382 | ) | (36,283 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
| Principal payments on notes and leases payable | (18,756 | ) | (21,463 | ) | (23,660 | ) | ||||||
| Proceeds from borrowings upon refinancing | - | 482,360 | - | |||||||||
| Repayment of bebt | - | (412,000 | ) | - | ||||||||
| Deferred financing costs | (944 | ) | (17,613 | ) | - | |||||||
| Proceeds from, net of payments on, line of credit | 58,000 | - | (1,742 | ) | ||||||||
| Payments to counterparties of interest rate swaps, net of amounts received | (6,455 | ) | (6,382 | ) | (4,739 | ) | ||||||
| Distributions to noncontrolling interests | (154 | ) | (131 | ) | (116 | ) | ||||||
| Proceeds from issuance of common stock upon exercise of options/warrants | 242 | 271 | 16 | |||||||||
| Net cash provided by (used in) financing activities | 31,933 | 25,042 | (30,241 | ) | ||||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (2 | ) | (11 | ) | - | |||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,828 | (9,467 | ) | 10,094 | ||||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 627 | 10,094 | - | |||||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 2,455 | $ | 627 | $ | 10,094 | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||||||
| Cash paid during the period for interest | $ | 47,310 | $ | 40,352 | $ | 40,092 | ||||||
| Cash paid during the period for income taxes | $ | 727 | $ | 659 | $ | 348 |
RADNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended December 31, | ||||||||
| 2011 | 2010 | |||||||
| NET REVENUE | $ | 164,767 | $ | 146,124 | ||||
| OPERATING EXPENSES | ||||||||
| Operating expenses | 125,140 | 109,495 | ||||||
| Depreciation and amortization | 14,955 | 13,844 | ||||||
| Provision for bad debts | 9,418 | 8,555 | ||||||
| Loss (gain) on sale of equipment | (312 | ) | 530 | |||||
| Severance costs | 421 | 107 | ||||||
| Total operating expenses | 149,622 | 132,531 | ||||||
| INCOME FROM OPERATIONS | 15,145 | 13,593 | ||||||
| OTHER EXPENSES (INCOME) | ||||||||
| Interest expense | 13,491 | 12,921 | ||||||
| Other expenses (income) | (1,509 | ) | (1,466 | ) | ||||
| Total other expense | 11,982 | 11,455 | ||||||
| LOSS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES | 3,163 | 2,138 | ||||||
| Provision for income taxes | (102 | ) | (53 | ) | ||||
| Earnings from joint ventures | 1,435 | 1,307 | ||||||
| NET INCOME (LOSS) | 4,496 | 3,392 | ||||||
| Net income attributable to noncontrolling interests | 51 | (92 | ) | |||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS | $ | 4,547 | $ | 3,300 | ||||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS | $ | 0.12 | $ | 0.09 | ||||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS | $ | 0.12 | $ | 0.09 | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
| Basic | 37,426 | 37,143 | ||||||
| Diluted | 38,059 | 37,845 |
RECONCILIATION OF GAAP NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA(1)
| Three Months Ended December 31, | ||||||||
| 2011 | 2010 | |||||||
| Net Income Attributable to RadNet, Inc. Common Shareholders | $ | 4,547 | $ | 3,300 | ||||
| Plus Provision for Income Taxes | 102 | 53 | ||||||
| Plus Other Expenses (Income) | (1,509 | ) | (1,466 | ) | ||||
| Plus Interest Expense | 13,491 | 12,921 | ||||||
| Plus Severence Costs | 421 | 107 | ||||||
| Plus Loss (Gain) on Sale of Equipment | (312 | ) | 530 | |||||
| Plus Depreciation and Amortization | 14,955 | 13,844 | ||||||
| Plus Non Cash Employee Stock Compensation | 611 | 898 | ||||||
| Adjusted EBITDA (1) | $ | 32,306 | $ | 30,187 |
| Fiscal Year Ended December 31, | ||||||||
| 2011 | 2010 | |||||||
| Net Loss Attributable to RadNet, Inc. Common Shareholders | $ | 7,231 | $ | (12,852 | ) | |||
| Plus Provision for Income Taxes | 820 | 576 | ||||||
| Plus Other Expenses (Income) | (5,075 | ) | 505 | |||||
| Plus Interest Expense | 52,798 | 48,398 | ||||||
| Plus Severence Costs | 1,391 | 838 | ||||||
| Plus Loss (Gain) on Sale of Equipment | (2,240 | ) | 1,136 | |||||
| Plus Depreciation and Amortization | 57,481 | 53,997 | ||||||
| Plus Non Cash Employee Stock Compensation | 3,110 | 3,718 | ||||||
| Plus Loss on Extinguishment of Debt | - | 9,871 | ||||||
| Adjusted EBITDA (1) | $ | 115,516 | $ | 106,187 |
RADNET PAYMENTS BY PAYORS *
| Fourth Quarter 2011 | Full Year 2011 | Full Year 2010 | Full Year 2009 | |||||||||||||
| Commercial Insurance | 54.8 | % | 55.1 | % | 55.7 | % | 55.8 | % | ||||||||
| Medicare | 20.4 | % | 20.2 | % | 19.3 | % | 20.0 | % | ||||||||
| Capitation | 14.3 | % | 14.5 | % | 15.3 | % | 15.4 | % | ||||||||
| Workers Compensation/Personal Injury | 4.4 | % | 4.5 | % | 4.1 | % | 3.5 | % | ||||||||
| Medicaid | 3.4 | % | 3.4 | % | 3.2 | % | 3.2 | % | ||||||||
| Other | 2.6 | % | 2.3 | % | 2.4 | % | 2.1 | % | ||||||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
RADNET PAYMENTS BY MODALITY *
| Fourth Quarter 2011 | Full Year 2011 | Full Year 2010 | Full Year 2009 | |||||||||||||
| MRI | 35.1 | % | 35.1 | % | 34.3 | % | 34.1 | % | ||||||||
| CT | 16.2 | % | 16.1 | % | 17.5 | % | 19.1 | % | ||||||||
| PET/CT | 5.9 | % | 6.0 | % | 6.1 | % | 6.0 | % | ||||||||
| X-ray | 10.2 | % | 10.1 | % | 10.1 | % | 9.8 | % | ||||||||
| Ultrasound | 10.9 | % | 10.9 | % | 11.0 | % | 10.3 | % | ||||||||
| Mammography | 15.8 | % | 15.9 | % | 16.0 | % | 16.0 | % | ||||||||
| Nuclear Medicine | 1.6 | % | 1.6 | % | 1.7 | % | 1.7 | % | ||||||||
| Other | 4.2 | % | 4.2 | % | 3.2 | % | 3.0 | % | ||||||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
RADNET AVERAGE PAYMENTS BY MODALITY *
| Fourth Quarter 2011 | Full Year 2011 | Full Year 2010 | Full Year 2009 | |||||||||||||
| MRI | $ | 496 | $ | 497 | $ | 501 | $ | 503 | ||||||||
| CT | 299 | 301 | 306 | 308 | ||||||||||||
| PET/CT | 1,490 | 1,490 | 1,494 | 1,493 | ||||||||||||
| X-ray | 41 | 41 | 40 | 38 | ||||||||||||
| Ultrasound | 106 | 107 | 107 | 108 | ||||||||||||
| Mammography | 134 | 134 | 135 | 135 | ||||||||||||
| Nuclear Medicine | 321 | 321 | 322 | 323 | ||||||||||||
| Other | 124 | 124 | 126 | 127 |
* Based upon global payments received from consolidated Imaging Centers from that year's dates of service.
Excludes payments from hospital contracts, Breastlink, Center Management Fees and other miscellaneous operating activities.
(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 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.